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 | Other comprehensive income (loss) prior to reclassifications | | | (3.4) | | | — | | | (3.4) | Amounts reclassified from accumulated other comprehensive income (loss) | | | — | | | (0.1) | | | (0.1) | Balance at September 30, 2025 | | $ | (4.9) | | $ | 10.2 | | $ | 5.3 |
| | | | | | | | | | | | | 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 | Other comprehensive income (loss) prior to reclassifications | | | 4.6 | | | — | | | 4.6 | Amounts reclassified from accumulated other comprehensive income (loss) | | | — | | | (0.1) | | | (0.1) | Balance at September 30, 2026 | | $ | (7.7) | | $ | 12.9 | | $ | 5.2 |
Amounts reclassified from accumulated other comprehensive income (loss) to the specific caption within the Consolidated Statements of Operations were as follows: | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | To Caption on Consolidated | | 2026 | | 2025 | | 2026 | | 2025 | | | Statements of Operations | | | (in millions) | | | | Foreign currency translation | $ | — | | $ | — | | $ | — | | $ | (0.1) | | | Other income (expense), net | Defined employee benefit plan | | 0.1 | | | 0.1 | | | 0.4 | | | 0.3 | | | Other income (expense), net | Total reclassifications | $ | 0.1 | | $ | 0.1 | | $ | 0.4 | | $ | 0.2 | | | |
Earnings Per Share The following table summarizes our earnings per share (“EPS”): | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | (in millions, except per share amounts) | Income from continuing operations | | $ | 115.8 | | $ | 46.4 | | $ | 237.6 | | $ | 96.8 | | | | | | | | | | | | | | | | | | | | | | | | | | | Basic weighted-average common shares outstanding | | | 40.0 | | | 37.6 | | | 38.8 | | | 37.6 | Dilutive effect of convertible notes | | | 0.5 | | | 0.4 | | | 1.4 | | | 0.1 | Dilutive effect of Warrants | | | 0.4 | | | — | | | 1.1 | | | — | Dilutive effect of stock awards | | | 0.5 | | | 0.5 | | | 0.6 | | | 0.4 | Diluted weighted-average common shares outstanding | | | 41.4 | | | 38.5 | | | 41.9 | | | 38.1 | | | | | | | | | | | | | | | | | | | | | | | | | | | EPS from continuing operations | | | | | | | | | | | | | Basic EPS | | $ | 2.90 | | $ | 1.23 | | $ | 6.12 | | $ | 2.57 | Diluted EPS | | $ | 2.80 | | $ | 1.21 | | $ | 5.67 | | $ | 2.54 | | | | | | | | | | | | | | | | | | | | | | | | | | | Anti-dilutive shares not included above | | | | | | | | | | | | | Stock awards | | | — | | | — | | | 0.1 | | | — | Warrants | | | — | | | 0.8 | | | — | | | 1.8 |
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 6. Long-Term Debt for information regarding our 2031 Notes, 2028 Notes, Note Hedges, and Warrants and 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 Company’s stock price is below the applicable conversion price, the 2028 Notes and 2031 Notes do not have a dilutive effect. When the stock price exceeds the applicable conversion price, the notes may have a dilutive effect. |
During the second quarter of 2026, the Company issued a redemption notice for the 2028 Notes. In connection with the redemption, the related Note Hedges were unwound and settled during the third quarter. Subsequent to September 30, 2026, the remaining principal amount of the 2028 Notes was settled in cash and the excess conversion value was settled in shares of common stock. Following settlement, no 2028 Notes remained outstanding. Following the unwind of the Note Hedges, no further offsetting effect from the Note Hedges is expected. Prior to conversion of the 2031 Notes, the Capped Call associated with the 2031 Notes is not considered in the calculation of Diluted EPS because its effect would be anti-dilutive. Upon conversion of the 2031 Notes, 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. Prior to their unwind, the Warrants increased the weighted-average number of common shares outstanding when the average market price of our common stock exceeded the $179.76 exercise price of the Warrants. During the third quarter of 2026, the Warrants were unwound and settled in shares in connection with the redemption of the 2028 Notes. Accordingly, the dilutive impact of the Warrants is reflected in diluted EPS through the settlement date after which no Warrants remained outstanding. |
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 September 30, | | Nine Months Ended September 30, | | | | 2026 | | 2025 | | 2026 | | 2025 | | | | | (in millions, except per share amounts) | | Amount paid or accrued to repurchase shares | | $ | — | | $ | — | | $ | 0.3 | | $ | 23.7 | | Number of shares repurchased | | | — | | | — | | | — | | | 0.3 | | Average repurchase price per share | | $ | — | | $ | — | | $ | 209.36 | | $ | 84.19 | |
There were no share repurchases during the three months ended September 30, 2026 and during the three months ended September 30, 2025. As of September 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.
|