The computation of basic and diluted earnings per share (“EPS”) is based on net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares, respectively.

The following table sets forth the computation of basic and diluted EPS (in millions, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net income	$	99	$	105	$	262	$	253

Basic weighted average shares outstanding	74.1		76.4		74.8		77.1
Stock options and restricted stock units (“RSUs”) (a)	0.2		0.5		0.3		0.5
Diluted weighted average shares outstanding	74.3		76.9		75.1		77.6

Earnings per share:
Basic	$	1.34	$	1.37	$	3.50	$	3.28
Diluted	1.33		1.36		3.49		3.26

Dividends:
Cash dividends declared per share	$	0.43	$	0.41	$	1.29	$	1.23
Aggregate dividends paid to stockholders	$	32	$	31	$	98	$	96

(a) Anti-dilutive shares related to stock options and PSUs were immaterial for both the three and nine months ended September 30, 2026 and 2025. Anti-dilutive shares related to RSUs were 0.5 million and 0.4 million for the three and nine months ended September 30, 2026, respectively and 0.2 million for both the three and nine months ended September 30, 2025, respectively. Such shares were excluded from shares outstanding as their effect would have been anti-dilutive under the treasury stock method.

The following table summarizes stock repurchase activity under the current stock repurchase program since inception in 2018 (in millions, except per share data) which includes excise taxes and fees:


	Shares	Cost		Average Price Per Share
As of December 31, 2025	27.9	$	1,935	$	69.37
For the nine months ended September 30, 2026	2.5	196		76.95
As of September 30, 2026	30.4	$	2,131	$	70.00