Earnings Per Share

6 Months Ended

Jun. 30, 2026

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 potentially dilutive shares of common stock been issued. The dilutive effect of stock options, performance options, RSUs, performance shares and deferred share equivalents are reflected in diluted earnings per share by applying the treasury stock method.

A summary of the calculations of our basic and diluted earnings per share is as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions, except per share data)	2026		2025		2026		2025
Net Income	$	125	$	111	$	167	$	148
Weighted-average common shares outstanding:		69.9		73.5		70.2		74.1
Effect of dilutive securities:
RSUs(1)		0.5		0.7		0.7		0.7
Stock options(2)		0.4		0.3		0.4		0.3
Performance options		0.3		0.3		0.3		0.3
Weighted-average common shares outstanding - assuming dilution:		71.1		74.7		71.6		75.3
Basic earnings per share	$	1.80	$	1.51	$	2.37	$	2.00
Diluted earnings per share	$	1.76	$	1.48	$	2.33	$	1.96

(1)

RSUs of 746 shares and 1,304 shares for the three months ended June 30, 2026 and 2025, respectively, and 247,827 shares and 389,970 shares for the six months ended June 30, 2026 and 2025, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive.

(2)

Stock options to purchase 552,923 shares and 770,881 shares for the three months ended June 30, 2026 and 2025, respectively, and 284,198 shares and 438,547 shares for the six months ended June 30, 2026 and 2025, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive.