NOTE 5: NET EARNINGS PER SHARE

Our basic and diluted earnings per share for the last three years were:

 

$0.45 in 2025,

$0.54 in 2024 and

$1.15 in 2023.

HOW WE CALCULATE BASIC AND DILUTED NET EARNINGS PER SHARE

Basic earnings per share is net earnings available to common shareholders divided by the weighted average number of our outstanding common shares, including stock equivalent units where there is no circumstance under which those shares would not be issued.

Diluted earnings per share is net earnings available to common shareholders divided by the sum of the:

 

weighted average number of our outstanding common shares and

the effect of our outstanding dilutive potential common shares.

 

Dilutive potential common shares may include:

 

outstanding stock options,

restricted stock units and

performance share units.

Calculation of Weighted Average Number of Outstanding Common Shares – Dilutive

 

SHARES IN THOUSANDS

 

 

 

 

 

 

 

 

 

 

 

2025

 

 

2024

 

 

2023

 

Weighted average number of outstanding shares — basic

 

 

723,162

 

 

 

728,398

 

 

 

731,654

 

Dilutive potential common shares:

 

 

 

 

 

 

 

 

 

Stock options

 

 

34

 

 

 

109

 

 

 

132

 

Restricted stock units

 

 

150

 

 

 

294

 

 

 

201

 

Performance share units

 

 

221

 

 

 

156

 

 

 

235

 

Total effect of outstanding dilutive potential common shares

 

 

405

 

 

 

559

 

 

 

568

 

Weighted average number of outstanding common shares — dilutive

 

 

723,567

 

 

 

728,957

 

 

 

732,222

 

We use the treasury stock method to calculate the dilutive effect of our outstanding stock options, restricted stock units and performance share units. Share-based payment awards that are contingently issuable upon the achievement of specified performance or market conditions are included in our diluted earnings per share calculation in the period in which the conditions are satisfied.

SHARES EXCLUDED FROM DILUTIVE EFFECT

The following shares were not included in the computation of diluted earnings per share because they were either antidilutive or the required performance or market conditions were not met. Some or all of these shares may be dilutive potential common shares in future periods.

Potential Shares Not Included in the Computation of Diluted Earnings per Share

 

SHARES IN THOUSANDS

 

 

 

 

 

 

 

 

 

 

 

2025

 

 

2024

 

 

2023

 

Stock options

 

 

 

 

 

607

 

 

 

609

 

Performance share units

 

 

833

 

 

 

947

 

 

 

706

 

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 14, 2025
2023Feb 16, 2024
2022Feb 17, 2023
2018Feb 15, 2019
2017Feb 16, 2018
2016Feb 24, 2017
2015Feb 17, 2016

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.