v3.26.1
Net Income Per Share
 6 Months Ended
Jun. 30, 2026
Earnings Per Share [Abstract]  
Net Income Per Share

NOTE 4 Net Income Per Share

Basic net income per share is computed based on the weighted average number of common shares (including participating securities) issued and outstanding during the period. Diluted net income per share is computed based on the weighted average number of common shares issued and outstanding plus equivalent shares, assuming the issuance of all potentially issuable common shares. The dilutive effect of potentially issuable common shares is computed by application of the treasury stock method. The following is a reconciliation between basic and diluted weighted average shares outstanding:

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

(in millions, except per share data)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to the Company

 

$

288

 

 

$

231

 

 

$

714

 

 

$

563

 

Less: Net income attributable to unvested awarded performance stock

 

 

(4

)

 

 

(3

)

 

 

(9

)

 

 

(6

)

Net income attributable to common shares – basic

 

$

284

 

 

$

228

 

 

$

705

 

 

$

557

 

Less: Gain on mark-to-market of escrow liability (1)

 

 

(5

)

 

 

—

 

 

 

(69

)

 

 

—

 

Net income attributable to common shares – diluted

 

$

279

 

 

$

228

 

 

$

636

 

 

$

557

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

333

 

 

 

295

 

 

 

334

 

 

 

291

 

Less: Unvested awarded performance stock

 

 

(4

)

 

 

(3

)

 

 

(4

)

 

 

(4

)

Weighted average number of common shares outstanding – basic

 

 

329

 

 

 

292

 

 

 

330

 

 

 

287

 

Dilutive effect of stock compensation plans

 

 

1

 

 

 

1

 

 

 

1

 

 

 

2

 

Dilutive effect of contingently issuable shares (1)

 

 

4

 

 

 

—

 

 

 

4

 

 

 

—

 

Weighted average number of shares outstanding – diluted

 

 

334

 

 

 

293

 

 

 

335

 

 

 

289

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.86

 

 

$

0.79

 

 

$

2.14

 

 

$

1.94

 

Diluted

 

$

0.84

 

 

$

0.78

 

 

$

1.90

 

 

$

1.93

 
(1)
The calculation of diluted net income per share for the three and six months ended June 30, 2026, excludes the gain on the mark-to-market of escrow liability in the numerator and includes the shares held in escrow in the denominator, in accordance with ASC 260 - Earnings Per Share, which requires this treatment in periods where the combined effect of these adjustments is accretive to earnings.