PRO FORMA EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2021

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.

At the October 1, 2021 date of distribution, we had 44,104,986 common shares outstanding. The calculation of both basic and diluted earnings per share for the three and nine months ended September 30, 2021 and 2020 utilizes the common shares at the date of distribution as the basis for the calculation of weighted-average common shares outstanding for periods prior to the

spin-off, because at that time we did not operate as a separate, stand-alone entity, and no equity-based awards were outstanding prior to the date of distribution.

Basic and diluted earnings per share are calculated as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2021		2020		2021		2020
Net income	$	92	$	51	$	269	$	105
Weighted-average common shares outstanding - basic and diluted	44.1		44.1		44.1		44.1
Pro forma earnings per share - basic and diluted	$	2.09	$	1.16	$	6.10	$	2.38