Earnings Per Share

9 Months Ended

Sep. 30, 2020

Note 17. Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potential dilutive shares of common stock been issued. The dilutive effect of stock options, RSUs, performance shares and restricted stock awards are reflected in diluted earnings per share by applying the treasury stock method.

Basic and diluted earnings per share are calculated as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions, except per share data)	2020		2019		2020		2019
Net Income	$	49	$	61	$	111	$	134
Weighted-average common shares outstanding		85.3		84.7		85.2		84.6
Effect of dilutive securities:
RSUs		0.2		0.2		0.2		0.1
Stock options⁽¹⁾		0.1		0.1		0.1		0.1
Weighted-average common shares outstanding - assuming dilution		85.6		84.9		85.5		84.8
Basic earnings per share	$	0.57	$	0.72	$	1.30	$	1.59
Diluted earnings per share	$	0.57	$	0.72	$	1.29	$	1.58

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(1)Options to purchase 0.9 million and 0.7 million shares for the three and nine months ended September 30, 2020, respectively, and 0.3 million and 0.5 million shares for the three and nine months ended 2019, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive.