Basic earnings or loss per share attributable to common stockholders is calculated by dividing net income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the reporting period. Diluted earnings or loss per share attributable to common stockholders is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period, except in periods when there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. The dilutive effect of outstanding equity-based compensation awards is reflected in diluted earnings or loss per share applicable to common stockholders by application of the treasury stock method.

The tables below illustrate the reconciliation of the earnings or loss and number of shares used in our calculation of basic and diluted earnings or loss per share attributable to common stockholders.


	Three Months Ended
(in millions, except per share amounts)	March 31, 2026		March 31, 2025
Net income attributable to common stockholders	$	22	$	56
Shares for basic earnings per share	34.5		35.1
Basic earnings per share	$	0.64	$	1.60


	Three Months Ended
(in millions, except per share amounts)	March 31, 2026		March 31, 2025
Net income attributable to common stockholders	$	22	$	56
Add back of interest expense related to convertible notes, net of tax	—		5
Numerator used to calculate diluted earnings per share	$	22	$	61

Shares for basic earnings per share	34.5		35.1
Effect of dilutive shares outstanding

Restricted stock units	0.3		0.2
2026 Convertible Notes	—		3.7
2027 Convertible Notes	—		3.0
Shares for diluted earnings per share	34.8		42.0
Diluted earnings per share	$	0.64	$	1.46

We excluded $4 million of interest expense, net of tax, and 3.1 million of potentially dilutive securities related to convertible notes from the above calculation of diluted earnings per share attributable to common stockholders for the three months ended March 31, 2026, as the effects would have been anti-dilutive.

The computations of diluted earnings per share attributable to common stockholders above exclude approximately 890,000 and 529,000 shares of common stock, the maximum number of shares issuable as of March 31, 2026 and March 31, 2025, respectively, upon the vesting of certain performance-based and market-based awards, because the performance or market conditions required to be met for the shares subject to such awards to vest were not achieved by the end of the reporting period.

In accordance with the applicable accounting guidance for calculating earnings per share, for the first quarter of 2026, we excluded from our calculation of diluted earnings per share 1,195,884 shares underlying stock appreciation rights (“SARs”) that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $68.03 to $173.88, were greater than the average market price of our common stock for the applicable period.

For the first quarter of 2025, we excluded from our calculation of diluted earnings per share 788,607 shares underlying SARs that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $71.17 to $173.88, were greater than the average market price of our common stock for the applicable period.