Earnings Per Share

9 Months Ended

Sep. 30, 2023


4. EARNINGS PER SHARE

The computation of basic and diluted earnings per share (“EPS”) is based on net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares, respectively.

The following table sets forth the computation of basic 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	$	102	$	103	$	204	$	240

Basic weighted average shares outstanding	78.8		84.0		80.1		85.2
Stock options and restricted stock units (“RSUs”) (a)	0.4		0.5		0.4		0.5
Diluted weighted average shares outstanding	79.2		84.5		80.5		85.7

Earnings per share:
Basic	$	1.30	$	1.22	$	2.55	$	2.81
Diluted	1.29		1.21		2.54		2.79

Dividends:
Cash dividends declared per share	$	0.38	$	0.35	$	1.14	$	1.05
Aggregate dividends paid to stockholders	$	29	$	29	$	92	$	90

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(a) Diluted shares outstanding excludes anti-dilutive shares related to stock options of 0.2 million for both the three and nine months ended September 30, 2023. Anti-dilutive shares related to stock options were immaterial for both the three and nine months ended September 30, 2024. Diluted shares outstanding excludes anti-dilutive shares related to RSUs of 0.5 million for both the three and nine months ended September 30, 2024 and 0.4 million for both the three and nine months ended September 30, 2023.

Stock Repurchase Program

The following table summarizes stock repurchase activity under the current stock repurchase program (in millions, except per share data) which includes excise taxes and fees:


	Shares	Cost		Average Price Per Share
As of December 31, 2023	20.7	$	1,361	$	65.69
For the nine months ended September 30, 2024	3.8	285		75.01
As of September 30, 2024	24.5	$	1,646	$	67.13

The Company had $560 million of remaining availability under its program as of September 30, 2024.