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, performance options, RSUs, performance shares and deferred share equivalents are reflected in diluted earnings per share by applying the treasury stock method.

A summary of the calculations of our basic and diluted earnings per share is as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions, except per share data)	2025		2024		2025		2024
Net Income	$	111	$	92	$	148	$	126
Weighted-average common shares outstanding:		73.5		77.7		74.1		78.0
Effect of dilutive securities:
RSUs(1)		0.7		0.4		0.7		0.5
Stock options(2)		0.3		0.1		0.3		—
Performance options(3)		0.3		—		0.3		—
Weighted-average common shares outstanding - assuming dilution:		74.7		78.1		75.3		78.5
Basic earnings per share	$	1.51	$	1.18	$	2.00	$	1.61
Diluted earnings per share	$	1.48	$	1.18	$	1.96	$	1.60

(1)

RSUs of 1,304 shares and 3,093 shares for the three months ended June 30, 2025 and 2024, respectively, and 389,970 shares and 428,235 shares for the six months ended June 30, 2025 and 2024, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive.

(2)

Stock options to purchase 770,881 shares and 1,504,925 shares for the three months ended June 30, 2025 and 2024, respectively, and 438,547 shares and 1,299,171 shares for the six months ended June 30, 2025 and 2024, respectively, were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive.

(3)

Performance options to purchase 274,282 shares for each of the three and six months ended June 30, 2024 were not included in the diluted earnings per share calculation because their effect would have been anti-dilutive. There were no anti-dilutive shares of performance options for the three and six months ended June 30, 2025.