Basic earnings per share attributable to common stockholders is calculated by dividing net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the reporting period. Diluted earnings per share attributable to common stockholders is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period. The dilutive effect of outstanding equity-based compensation awards is reflected in diluted earnings 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				Six Months Ended
(in millions, except per share amounts)	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Net income attributable to common stockholders	$	77	$	69	$	99	$	125
Shares for basic earnings per share	34.8		34.9		34.7		35.0
Basic earnings per share	$	2.21	$	1.98	$	2.86	$	3.59


	Three Months Ended				Six Months Ended
(in millions, except per share amounts)	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Net income attributable to common stockholders	$	77	$	69	$	99	$	125
Add back of interest expense related to convertible notes, net of tax	4		5		8		10
Numerator used to calculate diluted earnings per share	$	81	$	74	$	107	$	135

Shares for basic earnings per share	34.8		34.9		34.7		35.0
Effect of dilutive shares outstanding

Restricted stock units	0.4		—		0.3		0.1
2026 Convertible Notes	—		3.7		—		3.7
2027 Convertible Notes	3.0		3.1		3.0		3.1
Shares for diluted earnings per share	38.2		41.7		38.0		41.9
Diluted earnings per share	$	2.12	$	1.77	$	2.82	$	3.23

The computations of diluted earnings per share attributable to common stockholders above exclude approximately 873,000 and 645,000 shares of common stock, the maximum number of shares issuable as of June 30, 2026 and June 30, 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 second quarter of 2026, we excluded from our calculation of diluted earnings per share 635,060 shares underlying stock appreciation rights (“SARs”) that may settle in shares of common stock because the exercise prices of such SARs, which ranged from $93.73 to $173.88, were greater than the average market price of our common stock for the applicable period.

For the first half of 2026, we excluded from our calculation of diluted earnings per share 763,659 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.

For the second quarter and first half 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.