EPS is calculated as net income available to common shareholders divided by our weighted-average number of basic or diluted common shares outstanding. Net income available to common shareholders is calculated by reducing net income by the amount of the subsidiary preferred stock deemed dividends associated with the Subsidiary Series A Preferred Stock, as it is not a participating security.

Potential dilutive common shares primarily consist of employee stock options, restricted stock units (“RSUs”), performance share units (“PSUs”), Subsidiary Series A Preferred Stock and Subsidiary Warrants. As of October 2, 2026, the Subsidiary Series A Preferred Stock is anti-dilutive and the Subsidiary Warrants are not currently exercisable, therefore, both instruments are excluded from the diluted EPS calculation.

See Note B: Strategic Investment in Subsidiary for further information on the subsidiary preferred stock deemed dividends, Subsidiary Series A Preferred Stock and Subsidiary Warrants.


	Third Quarter				Year to Date
(In millions, except per share amount)	2026		2025		2026		2025

Net income	$	632	$	462	$	1,744	$	1,306
Subsidiary preferred stock deemed dividends	(19)		—		(33)		—
Net income available to common shareholders	$	613	$	462	$	1,711	$	1,306

Basic weighted-average common shares outstanding	186.1		187.1		186.4		187.6
Impact of dilutive share-based awards	0.8		1.0		1.1		1.0
Diluted weighted-average common shares outstanding	186.9		188.1		187.5		188.6

Earnings per share available to common shareholders
Basic	$	3.29	$	2.47	$	9.18	$	6.96
Diluted	$	3.28	$	2.46	$	9.13	$	6.92

Anti-dilutive share-based awards excluded from diluted EPS were 0.4 million and 0.9 million for third quarter and year to date 2026, respectively, and 2.0 million for year to date 2025. There were no anti-dilutive share-based awards excluded from diluted EPS for third quarter 2025.