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Earnings Per Share
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Earnings Per Share

NOTE Q. 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):

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net income

 

$

200

 

 

$

158

 

 

$

556

 

 

$

503

 

Weighted average shares of common stock outstanding

 

 

87

 

 

 

90

 

 

 

87

 

 

 

91

 

Dilutive effect of stock-based awards

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

Diluted weighted average shares of common stock outstanding

 

 

88

 

 

 

90

 

 

 

88

 

 

 

91

 

Basic earnings per share attributable to common stockholders

 

$

2.30

 

 

$

1.76

 

 

$

6.39

 

 

$

5.53

 

Diluted earnings per share attributable to common stockholders

 

$

2.27

 

 

$

1.76

 

 

$

6.32

 

 

$

5.53

 

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, 2024 and 2023, there were no outstanding stock options that were anti-dilutive. Basic and diluted EPS for the full-year are calculated using the weighted average shares of common stock outstanding during the year while quarterly basic and diluted EPS are calculated using the weighted average shares of common stock outstanding during the quarter; therefore, the sum of each quarter's EPS may not equal full-year EPS.