SEC Filings


10-K
CUMMINS INC filed this Form 10-K on 02/11/2019
Entire Document
 

The tables below summarize the employee share-based activity in the Plan:
 
 
Options
 
Weighted-average
Exercise Price
 
Weighted-average
Remaining
Contractual Life
(in years)
 
Aggregate
Intrinsic Value
(in millions)
Balance at December 31, 2015
 
2,029,686

 
$
115.02

 
 
 
 

Granted
 
984,430

 
109.24

 
 
 
 

Exercised
 
(215,890
)
 
87.27

 
 
 
 

Forfeited
 
(63,462
)
 
119.56

 
 
 
 

Balance at December 31, 2016
 
2,734,764

 
115.02

 
 
 
 

Granted
 
648,900

 
149.98

 
 
 
 

Exercised
 
(355,479
)
 
105.91

 
 
 
 

Forfeited
 
(126,816
)
 
125.65

 
 
 
 

Balance at December 31, 2017
 
2,901,369

 
123.49

 
 
 
 

Granted
 
515,320

 
159.06

 
 
 
 

Exercised
 
(140,133
)
 
88.74

 
 
 
 

Forfeited
 
(32,894
)
 
133.00

 
 
 
 

Balance at December 31, 2018
 
3,243,662

 
$
130.55

 
6.7
 
$
37

 
 
 
 
 
 
 
 
 
Exercisable, December 31, 2016
 
1,149,549

 
$
104.19

 
4.8
 
$
38

Exercisable, December 31, 2017
 
1,063,889

 
$
115.26

 
4.7
 
$
66

Exercisable, December 31, 2018
 
1,366,722

 
$
124.97

 
4.7
 
$
18


The weighted-average grant date fair value of options granted during the years ended December 31, 2018, 2017 and 2016, was $34.21, $36.86 and $25.28, respectively. The total intrinsic value of options exercised during the years ended December 31, 2018, 2017 and 2016, was approximately $9 million, $19 million and $9 million, respectively.
The weighted-average grant date fair value of performance and restricted shares was as follows:
 
 
Performance Shares
 
Restricted Shares
Nonvested
 
Shares
 
Weighted-average
Fair Value
 
Shares
 
Weighted-average
Fair Value
Balance at December 31, 2015
 
420,369

 
$
123.88

 
4,254

 
$
111.40

Granted
 
169,150

 
98.26

 
8,089

 
117.69

Vested
 
(115,680
)
 
106.55

 
(2,502
)
 
114.57

Forfeited
 
(69,345
)
 
110.52

 

 

Balance at December 31, 2016
 
404,494

 
120.41

 
9,841

 
115.76

Granted
 
150,225

 
138.23

 

 

Vested
 
(85,020
)
 
141.50

 
(1,752
)
 
106.89

Forfeited
 
(58,460
)
 
132.52

 

 

Balance at December 31, 2017
 
411,239

 
120.84

 
8,089

 
117.68

Granted
 
124,700

 
146.50

 

 

Vested
 
(80,996
)
 
128.47

 
(2,696
)
 
117.68

Forfeited
 
(44,593
)
 
127.90

 

 

Balance at December 31, 2018
 
410,350

 
$
126.36

 
5,393

 
$
117.68


The total vesting date fair value of performance shares vested during the years ended December 31, 2018, 2017 and 2016 was $13 million, $13 million and $12 million, respectively. The total fair value of restricted shares vested was less than $1 million, $1 million and $1 million for the years ended December 31, 2018, 2017 and 2016, respectively.

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