Net Income Per Share
The computation of basic and diluted net income per share was as follows:
202520242023
Numerator:
Net (loss)/income$(47.8)$125.6 $73.6 
Denominator:
Shares, basic39.339.239.6
Effect of dilutive share-based awards and convertible notes0.00.50.6
Shares, diluted39.339.740.2
Net (loss)/income per share:
Basic$(1.22)$3.20 $1.86 
Diluted$(1.22)$3.16 $1.83 
The following potentially dilutive securities were excluded from the computation of diluted net (loss)/income per share as their effect would have been antidilutive:
202520242023
Share-based awards3.30.20.7
Convertible senior notes4.5— — 
Total7.80.20.7
Our basic net income per share amounts for each period presented have been computed using the weighted average number of shares of common stock outstanding. Our diluted net income per share amounts for each period presented include the weighted average effect of potentially dilutive shares. We used the “treasury stock” method to determine the dilutive effect of outstanding share-based awards. We used the if-converted method for calculating any potential dilutive effect of our 2031 Notes.

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.