INCOME PER COMMON SHARE

I. INCOME PER COMMON SHARE

Reconciliations of the numerators and denominators used in the computations of basic and diluted income per common share were as follows, in millions:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Numerator (basic and diluted):
Net income	$	318	$	270	$	531	$	456
Less: Allocation to participating securities	1		—		—		—
Net income attributable to common shareholders	$	317	$	270	$	531	$	456





Denominator:
Basic common shares (based upon weighted average)	199		210		201		211
Add: Dilutive effect of stock options and other stock-based incentives	—		—		—		—
Diluted common shares	199		211		201		212

For the three and six months ended June 30, 2026, we allocated dividends and undistributed earnings to the forward contract associated with the accelerated share repurchase transaction, which is considered a participating security, using the two-class method. For the three and six months ended June 30, 2025, basic and diluted income per common share were calculated using the treasury stock method.

I. INCOME PER COMMON SHARE (Concluded)

The following stock options, restricted stock units and performance restricted stock units were excluded from the computation of weighted-average diluted common shares outstanding due to their anti-dilutive effect, in thousands:


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Number of stock options	510	403	476	355
Number of restricted stock units	187	295	232	120
Number of performance restricted stock units	41	47	41	47

Effective February 10, 2026, our Board of Directors authorized the repurchase, for retirement, of up to $2.0 billion of shares of our common stock, exclusive of excise tax, in open-market transactions or otherwise, replacing the previous Board of Directors authorization established in 2022. In May 2026, we entered into an accelerated share repurchase transaction whereby we agreed to repurchase a total of $300 million of our common stock with an initial delivery of approximately 3.3 million shares. This transaction was completed on July 27, 2026, at which time we received, at no additional cost, approximately 0.8 million additional shares of our common stock based on the volume weighted average stock price of our common stock over the term of the transaction, less a discount. In total, excluding the incremental shares we received in July 2026 from the accelerated share repurchase transaction, we repurchased and retired approximately 7.8 million shares of our common stock in the six months ended June 30, 2026, for approximately $596 million, inclusive of excise tax of $5 million. This included 0.4 million shares to offset the dilutive impact of restricted stock units granted in the six months ended June 30, 2026. At June 30, 2026, we had approximately $1.5 billion remaining under the 2026 authorization.