v3.25.2
Earnings Per Share
6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Earnings Per Share

NOTE Q. EARNINGS PER SHARE

The following table reconciles the numerators and denominators used to calculate basic EPS and diluted EPS (in millions, except per share data):

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net income

 

$

195

 

 

$

187

 

 

$

387

 

 

$

356

 

Weighted average shares of common stock outstanding

 

 

84

 

 

 

87

 

 

 

85

 

 

 

88

 

Dilutive effect of stock-based awards

 

 

1

 

 

 

1

 

 

 

1

 

 

 

 

Diluted weighted average shares of common stock outstanding

 

 

85

 

 

 

88

 

 

 

86

 

 

 

88

 

Basic earnings per share attributable to common stockholders

 

$

2.32

 

 

$

2.15

 

 

$

4.55

 

 

$

4.05

 

Diluted earnings per share attributable to common stockholders

 

$

2.29

 

 

$

2.13

 

 

$

4.50

 

 

$

4.05

 

The dilutive impact of stock-based compensation is calculated using the treasury stock method. The treasury stock method assumes that the Company uses the proceeds from the exercise of awards to repurchase common stock at the average market price during the period. For each of the three and six months ended June 30, 2025 and 2024, there were no outstanding stock options that were anti-dilutive and excluded from the diluted EPS calculation. Basic and diluted EPS for the full-year are calculated using the weighted average shares of common stock outstanding during the year while quarterly basic and diluted EPS are calculated using the weighted average shares of common stock outstanding during the quarter; therefore, the sum of each quarter's EPS may not equal full-year EPS.