Earnings per share and shareholders' equity

6 Months Ended

Jun. 30, 2025

Earnings per share and shareholders’ equity

Basic earnings per share is computed by dividing net income attributable to the Company by the weighted-

average number of shares outstanding during the applicable period. Diluted earnings per share is computed by

dividing net income attributable to the Company by the total of the weighted-average number of shares outstanding

during the applicable period, plus the effect of dilutive securities. The computation of diluted earnings per share

excludes the effect of the potential exercise of share-based awards, when the effect of the potential exercise would

be antidilutive.

On the Separation and Distribution Date, the Company distributed 553,082,069 shares to Parent

shareholders in connection with the Spin-off. This amount is based on 566,875,513 Parent shares outstanding at the

Separation and Distribution Date. The 13,793,444 shares not distributed to Parent shareholders are held by the

Company as treasury stock. The treasury stock was contributed for no consideration and is recorded on the balance

sheet with no cost basis. The calculation for basic and diluted earnings per share for any period presented prior to the

Spin-off were based on the number of shares outstanding on the Separation and Distribution Date and have been

retrospectively presented. For periods prior to the Spin-off, it is assumed that there are no dilutive equity instruments

as there were no Company share-based awards outstanding at the time.

The calculation of basic and diluted earnings per share for the three and six months ended June 30, 2025

and 2024 was as follows:


	For the three months ended June 30,		For the six months ended June 30,
(In millions, except per share data)	2025	2024	2025	2024
Numerator:
Net income	$428	$473	$341	$429
Net loss attributable to noncontrolling interest	1	1	1	1
Net income attributable to the Company	$429	$474	$342	$430
Denominator:
Basic weighted-average number of shares outstanding	553.1	553.1	553.1	553.1
Dilutive effect of share-based awards	—	—	—	—
Diluted weighted-average number of shares outstanding	553.1	553.1	553.1	553.1

Earnings per share
Basic	$0.78	$0.86	$0.62	$0.78
Diluted	$0.78	$0.86	$0.62	$0.78