Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Basic and diluted net earnings per share

The following is a reconciliation of the shares used in calculating basic and diluted EPS:

	Year Ended December 31,
	2020		2019		2018
Net income (in millions)	$	254	$	401	$	549
Shares (in thousands):
Weighted average common shares outstanding	180,094		179,958		179,750
Add: Participating securities (a)	22		29		27
Weighted average common shares outstanding — Basic	180,116		179,987		179,777
Plus incremental shares from assumed conversions: (b)
Dilutive effect of stock options	671		803		876
Dilutive effect of restricted stock units and performance share units	312		406		479
Weighted average common shares outstanding — Diluted	181,099		181,196		181,132
Basic earnings per share	$	1.41	$	2.23	$	3.05
Diluted earnings per share	$	1.40	$	2.21	$	3.03

(a)Restricted stock awards containing rights to non-forfeitable dividends that participate in undistributed earnings with common shareholders are considered participating securities for purposes of computing EPS.

(b)Incremental shares from stock options, restricted stock units and performance share units are computed by the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock units and performance share units, reduced by the repurchase of shares with the proceeds from the assumed exercises and unrecognized compensation expense for outstanding awards. Performance share units are included in the treasury stock calculation of diluted earnings per share based upon achievement of underlying performance and market conditions at the end of the reporting period, as applicable. See Note 17, "Share-Based Compensation Plans" for further detail on the performance share unit

Incremental shares from stock options and restricted stock

	Year Ended December 31,
(in thousands)	2020	2019	2018
Stock options	1,545	1,383	1,300
Restricted stock units	362	348	333
Performance share units	305	394	465