SEC Filings


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

The fair value of each option grant was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions:
 
 
2018
 
2017
 
2016
Expected life (years)
 
6

 
6

 
5

Risk-free interest rate
 
2.72
%
 
2.08
%
 
1.34
%
Expected volatility
 
25.40
%
 
29.97
%
 
30.96
%
Dividend yield
 
2.48
%
 
2.28
%
 
2.10
%

Expected life—The expected life of employee stock options represents the weighted-average period the stock options are expected to remain outstanding based upon our historical data.
Risk-free interest rate—The risk-free interest rate assumption is based upon the observed U.S. treasury security rate appropriate for the expected life of our employee stock options.
Expected volatility—The expected volatility assumption is based upon the weighted-average historical daily price changes of our common stock over the most recent period equal to the expected option life of the grant, adjusted for activity which is not expected to occur in the future.
Dividend yield—The dividend yield assumption is based on our history and expectation of dividend payouts.
NOTE 17. NONCONTROLLING INTERESTS
Noncontrolling interests in the equity of consolidated subsidiaries were as follows:
 
 
December 31,
In millions
 
2018
 
2017
Eaton Cummins Automated Transmission Technologies (1)
 
$
602

 
$
609

Cummins India Ltd. (2)
 
293

 
280

Other
 
16

 
16

Total
 
$
911

 
$
905


____________________________________________________
(1) See Note 19, "ACQUISITIONS," for additional information.
(2) Noncontrolling interest for Cummins India Ltd. increased $24 million and decreased $43 million in 2018 and 2017, respectively, primarily due to withholding taxes on foreign earnings as a result of Tax Legislation. See Note 4, "INCOME TAXES," to our Consolidated Financial Statements for additional information.

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