Earnings Per Share

9 Months Ended

Sep. 30, 2022

Note 16. Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potentially dilutive shares of common stock been issued. The dilutive effect of stock options, RSUs, performance shares and RSAs are reflected in diluted earnings per share by applying the treasury stock method.

Basic and diluted earnings per share are calculated as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions, except per share data)	2022		2021		2022		2021
Net Income	$	28	$	76	$	63	$	122
Weighted-average common shares outstanding		81.5		85.5		82.0		85.5
Effect of dilutive securities:
RSUs⁽¹⁾		0.2		0.2		0.1		0.2
Stock options⁽²⁾		—		0.2		—		0.2
Weighted-average common shares outstanding - assuming dilution		81.6		85.9		82.1		85.9
Basic earnings per share	$	0.34	$	0.89	$	0.77	$	1.42
Diluted earnings per share	$	0.34	$	0.89	$	0.77	$	1.42

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(1)RSUs of 0.8 million and 0.3 million shares for the three months ended September 30, 2022 and 2021, respectively, and 1.0 million and 0.3 million shares for the nine months ended September 30, 2022 and 2021, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive.

(2)Options to purchase 1.6 million and 0.7 million shares for the three months ended September 30, 2022 and 2021, respectively, and 1.4 million and 0.6 million shares for the nine months ended September 30, 2022 and 2021, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive.