Earnings Per Share

9 Months Ended

Sep. 30, 2023

NOTE Q. EARNINGS PER SHARE

The following table reconciles the numerators and denominators used to calculate basic EPS and diluted EPS (dollars in millions, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net income	$	158	$	139	$	503	$	390
Weighted average shares of common stock outstanding		90		95		91		97
Dilutive effect of stock-based awards		—		1		—		—
Diluted weighted average shares of common stock outstanding		90		96		91		97
Basic earnings per share attributable to common stockholders	$	1.76	$	1.46	$	5.53	$	4.02
Diluted earnings per share attributable to common stockholders	$	1.76	$	1.45	$	5.53	$	4.02

The dilutive impact of stock-based compensation is calculated using the treasury stock method. The treasury stock method assumes that the Company uses the proceeds from the exercise of awards to repurchase common stock at the average market price during the period. For each of the three and nine months ended September 30, 2023, there were no outstanding stock options excluded from the diluted EPS calculation because they were anti-dilutive. For each of the three and nine months ended September 30, 2022, there were 2 million outstanding stock options excluded from the diluted EPS calculation because they were anti-dilutive. Basic and diluted EPS for the full-year is calculated using the weighted average shares of common stock outstanding during the year while quarterly basic and diluted EPS is calculated using the weighted average shares of common stock outstanding during the quarter; therefore, the sum of the four quarters’ EPS may not equal full-year EPS.