NOTE 7. STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE Accumulated Other Comprehensive Income (Loss) The following table summarizes the components of, and changes in, accumulated other comprehensive income
(loss), net of income taxes. | | | | | | | | | | | | | Foreign Currency Translation | | | Defined Employee Benefit Plan | | | Total | | | | (in millions) | Balance at December 31, 2024 | | $ | (22.3) | | $ | 10.5 | | $ | (11.8) | Other comprehensive income (loss) prior to reclassifications | | | 4.5 | | | — | | | 4.5 | Amounts reclassified from accumulated other comprehensive income (loss) | | | 0.1 | | | (0.1) | | | — | Balance at March 31, 2025 | | $ | (17.7) | | $ | 10.4 | | $ | (7.3) | Other comprehensive income (loss) prior to reclassifications | | | 16.2 | | | — | | | 16.2 | Amounts reclassified from accumulated other comprehensive income (loss) | | | — | | | (0.1) | | | (0.1) | Balance at June 30, 2025 | | $ | (1.5) | | $ | 10.3 | | $ | 8.8 |
| | | | | | | | | | | | | Foreign Currency Translation | | | Defined Employee Benefit Plan | | | Total | | | | (in millions) | Balance at December 31, 2025 | | $ | (7.1) | | $ | 13.3 | | $ | 6.2 | Other comprehensive income (loss) prior to reclassifications | | | (3.2) | | | — | | | (3.2) | Amounts reclassified from accumulated other comprehensive income (loss) | | | — | | | (0.1) | | | (0.1) | Balance at March 31, 2026 | | $ | (10.3) | | $ | 13.2 | | $ | 2.9 | Other comprehensive income (loss) prior to reclassifications | | | (2.0) | | | — | | | (2.0) | Amounts reclassified from accumulated other comprehensive income (loss) | | | — | | | (0.2) | | | (0.2) | Balance at June 30, 2026 | | $ | (12.3) | | $ | 13.0 | | $ | 0.7 |
Amounts reclassified from accumulated other comprehensive income (loss) to the specific caption within the
Consolidated Statements of Operations were as follows: | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | To Caption on Consolidated | | 2026 | | 2025 | | 2026 | | 2025 | | | Statements of Operations | | | (in millions) | | | | Foreign currency translation | $ | — | | $ | — | | $ | — | | $ | (0.1) | | | Other expense, net | Defined employee benefit plan | | 0.2 | | | 0.1 | | | 0.3 | | | 0.2 | | | Other expense, net | Total reclassifications | $ | 0.2 | | $ | 0.1 | | $ | 0.3 | | $ | 0.1 | | | |
Earnings Per Share The following table summarizes our earnings per share (“EPS”): | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | (in millions, except per share amounts) | Income from continuing operations | | $ | 54.5 | | $ | 25.5 | | $ | 121.8 | | $ | 50.4 | | | | | | | | | | | | | | | | | | | | | | | | | | | Basic weighted-average common shares outstanding | | | 38.9 | | | 37.6 | | | 38.3 | | | 37.6 | Dilutive effect of convertible notes | | | 1.6 | | | — | | | 1.9 | | | — | Dilutive effect of Warrants | | | 1.3 | | | — | | | 1.5 | | | — | Dilutive effect of stock awards | | | 0.5 | | | 0.2 | | | 0.6 | | | 0.4 | Diluted weighted-average common shares outstanding | | | 42.3 | | | 37.8 | | | 42.3 | | | 38.0 | | | | | | | | | | | | | | | | | | | | | | | | | | | EPS from continuing operations | | | | | | | | | | | | | Basic EPS | | $ | 1.40 | | $ | 0.68 | | $ | 3.18 | | $ | 1.34 | Diluted EPS | | $ | 1.29 | | $ | 0.67 | | $ | 2.88 | | $ | 1.33 | | | | | | | | | | | | | | | | | | | | | | | | | | | Anti-dilutive shares not included above | | | | | | | | | | | | | Stock awards | | | — | | | 0.1 | | | — | | | — | Warrants | | | — | | | 2.6 | | | — | | | 2.5 |
We compute basic earnings per share of common stock (“Basic EPS”) by dividing income available to common stockholders by the weighted-average number of common shares outstanding during the period. See Note 7. Long-Term Debt in our Annual Report on Form 10-K for the year ended December 31, 2025 for information regarding our 2028 Notes, Note Hedges, and Warrants. For diluted earnings per share of common stock (“Diluted EPS”), we increase the weighted-average number of common shares outstanding during the period, as needed, to include the following: | ● | Additional common shares that would have been outstanding if our outstanding stock awards had been converted to common shares using the treasury stock method. We exclude any stock awards that have an anti-dilutive effect; |
| ● | Dilutive impact associated with the remaining 2028 Notes and the 2031 Notes using the if-converted method. The 2028 Notes and 2031 Notes are repayable in cash up to par value and in cash or shares of common stock for the excess over par value. When the stock price is lower than the strike price, there is no dilutive or anti-dilutive impact. When the stock price is higher than the initial strike price, there is a dilutive impact associated with the 2028 Notes and the 2031 Notes. Prior to conversion, we do not consider the Note Hedges associated with the 2028 Notes or the Capped Call associated with the 2031 Notes for purposes of Diluted EPS as their effect would be anti-dilutive. Upon conversion, we expect the Note Hedges to partially offset the dilutive effect of the 2028 Notes when the stock price is above $137.46 but below $179.76. Further, upon conversion, we expect the Capped Call to economically offset the dilutive effect of the 2031 Notes when the stock price is above $508.78 but below $678.38; and |
| ● | Dilutive effect of the Warrants issued concurrently with the 2028 Notes using the treasury stock method. For the three and six months ended June 30, 2026, the Warrants increased the weighted-average number of common shares outstanding because the average market price of our common stock exceeded the $179.76 exercise price of the Warrants. |
Share Repurchases To repurchase shares of our common stock, we periodically enter into share repurchase agreements. The following table summarizes these repurchases: | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | | 2026 | | 2025 | | 2026 | | 2025 | | | | | (in millions, except per share amounts) | | Amount paid or accrued to repurchase shares | | $ | — | | $ | 22.8 | | $ | 0.3 | | $ | 23.7 | | Number of shares repurchased | | | — | | | 0.3 | | | — | | | 0.3 | | Average repurchase price per share | | $ | — | | $ | 83.83 | | $ | 209.36 | | $ | 84.19 | |
There were no share repurchases during the three months ended June 30, 2026. As of June 30, 2026, the remaining amount authorized by the Board of Directors (“our Board” or “the Board”) for future share repurchases was $166.6 million with no time limitation.
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