NET INCOME PER SHARE (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Earnings per Share Basic and Diluted

The following table sets forth the computation of basic and diluted net income per share (in millions except per share amounts). Basic net income per share is calculated by dividing net income by the weighted average of shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. An immaterial number of shares related to the Company's restricted stock units and stock warrants were excluded from the denominator for the fiscal years ended December 31, 2023, 2022, and 2021 because inclusion of such shares would

be antidilutive.


	Year ended December 31,
		2023		2022		2021
NUMERATOR:
Net income		$	465	$	539	$	977
Add: Interest expense (a)		19		22		—
Net income attributable to common stockholders		$	484	$	561	$	977

DENOMINATOR:
Weighted-average shares outstanding, basic		595		593		592
Dilutive effects of convertible notes (a) (b)		43		47		15
Dilutive effects of stock warrants		—		—		1
Dilutive effect of restricted stock units		2		2		1

Adjusted weighted-average shares outstanding, diluted		640		642		609

NET INCOME PER SHARE:
Basic		$	0.78	$	0.91	$	1.65
Diluted		$	0.76	$	0.87	$	1.61

(a) As of January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method. The standard requires the Company to apply the if-converted method for purposes of diluted net income per share, which requires the Company to assume that all Convertible Notes were converted and outstanding for the entire period. Using this method, the numerator is affected by adding back interest expense and the denominator is affected by including the effect of potential share settlement, if the effect is more dilutive, regardless of the type of settlement. For the year ended December 31, 2023, all shares issuable on conversion were included in the denominator. See Notes 3 and 7 for further information regarding the Convertible Notes.

(b) Prior to the adoption of ASU 2020-06, the Convertible Notes were accounted for using the treasury stock method for the purposes of Net income per share. For the year ended December 31, 2021, the average market price of the Company's common stock exceeded the conversion price per share of $38.48 and as such, the common shares underlying the Convertible Notes were included in the diluted calculation.