Earnings Per Share

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 21. EARNINGS PER SHARE

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

	Years ended December 31,
	2023		2022		2021
Net income	$	673	$	531	$	442
Weighted average shares of common stock outstanding		90		96		107
Dilutive effect of stock-based awards		1		—		—
Diluted weighted average shares of common stock outstanding		91		96		107
Basic earnings per share attributable to common stockholders	$	7.48	$	5.53	$	4.13
Diluted earnings per share attributable to common    stockholders	$	7.40	$	5.53	$	4.13

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. During the year ended December 31, 2023, there were no outstanding stock options excluded from the diluted EPS calculation because they were anti-dilutive. During the years ended December 31, 2022 and 2021, there were 2 million and 1 million, respectively, of 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.