Net Income per Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Summary of denominators for the computation of basic and diluted earnings per share

The following table sets forth the calculation of net income per share:

	Three Months Ended March 31,
	2021		2020
	(In millions, except net income per share)
Numerator:
Net income	$	228	$	178
Denominator:
Shares outstanding at the beginning of the period	58.0		61.9
Weighted-average number of shares issued:
Stock purchases	(0.4)		(1.7)
Stock-based compensation	0.1		—
Denominator for basic net income per share	57.7		60.2
Effect of dilutive securities: (1)
Stock-based compensation	0.9		0.7
Other	—		0.1
Denominator for diluted net income per share	58.6		61.0
Net income per share - Basic (2)	$	3.95	$	2.95
Net income per share - Diluted (2)	$	3.89	$	2.92

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(1)    The dilutive effect of all potentially dilutive common shares is calculated using the treasury stock method.

(2)    Source data for calculations in thousands.