Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2021

Basic and diluted net earnings per share

The following is a reconciliation of the shares used in calculating basic and diluted net earnings per share:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Net income (in millions)	$	113	$	31	$	200	$	69
Shares (in thousands):
Weighted average common shares outstanding	180,072		179,933		180,162		180,043
Add: Participating securities (a)	34		32		24		29
Weighted average common shares outstanding — Basic	180,106		179,965		180,186		180,072
Plus incremental shares from assumed conversions: (b)
Dilutive effect of stock options	897		563		845		644
Dilutive effect of restricted stock units and performance share units	346		79		380		234

Weighted average common shares outstanding — Diluted	181,349		180,607		181,411		180,950
Basic earnings per share	$	0.63	$	0.17	$	1.11	$	0.38
Diluted earnings per share	$	0.62	$	0.17	$	1.10	$	0.38

(a)Restricted stock unit awards containing rights to non-forfeitable dividends that participate in undistributed earnings with common shareholders are considered participating securities for purposes of computing earnings per share.

(b)Incremental shares from stock options, restricted stock units and performance share units are computed by the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock units and performance share units, reduced by the repurchase of shares with the proceeds from the assumed exercises and unrecognized compensation expense for outstanding awards. Performance share units will be included in the treasury stock calculation of diluted earnings per share upon achievement of underlying performance or market conditions at the end of the reporting period. See Note 13, "Share-Based Compensation Plans", to the condensed consolidated financial statements for further detail on the performance share units.


	Three Months Ended		Six Months Ended
	June 30,		June 30,
(in thousands)	2021	2020	2021	2020
Stock options	1,227	1,766	1,238	1,567
Restricted stock units	318	441	302	377
Performance share units	345	313	349	299