EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2024

Basic and diluted earnings per share (EPS) were calculated using the treasury stock method. Our restricted and performance stock unit awards, as described in Note 10 Stock-Based Compensation, are not considered participating securities since the dividend rights on unvested shares are forfeitable.

For basic EPS, the weighted-average number of common shares outstanding excludes underlying shares related to equity-settled awards and warrants. For diluted EPS, the basic shares outstanding are adjusted by adding potential common shares, if dilutive. Under the treasury stock method, we assume that proceeds from the exercise of options, warrants and similar instruments are used to purchase common stock at average market price of our stock each period. For PSUs, we measure the performance of our common stock against certain market conditions to determine the percentage earned for each period and the number of potential common shares included in diluted EPS. An insignificant number of potential common shares were not earned, and therefore were not treated as issued in our diluted EPS calculation for the year ended December 31, 2024.

The following table presents the calculation of basic and diluted EPS.


	Year ended December 31,
	2024		2023		2022

	(in millions, except per share amounts)
Numerator for Basic and Diluted EPS
Net income	$	376	$	564	$	524






Denominator for Basic EPS
Weighted-average shares	79.3		69.6		75.5

Potential dilutive common shares:
Restricted Stock Units	0.5		1.0		0.7
Performance Stock Units	0.5		0.9		0.7
Warrants	1.0		1.0		0.7
Deferred Consideration Obligation (related to the Aera Merger)	0.1		—		—

Denominator for Diluted Earnings per Share
Weighted-average shares - diluted	81.4		72.5		77.6

EPS
Basic	$	4.74	$	8.10	$	6.94
Diluted	$	4.62	$	7.78	$	6.75