SEC Filings


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

NOTE 18. EARNINGS PER SHARE
We calculate basic earnings per share (EPS) of common stock by dividing net income attributable to Cummins Inc. by the weighted-average number of common shares outstanding for the period. The calculation of diluted EPS assumes the issuance of common stock for all potentially dilutive share equivalents outstanding. We exclude shares of common stock held in the Employee Benefits Trust (EBT) (see Note 14, "SHAREHOLDERS' EQUITY") from the calculation of the weighted-average common shares outstanding until those shares are distributed from the EBT to the Retirement Savings Plan. Following are the computations for basic and diluted earnings per share:
 
 
Years ended December 31,
Dollars in millions, except per share amounts
 
2018
 
2017
 
2016
Net income attributable to Cummins Inc. 
 
$
2,141

 
$
999

 
$
1,394

 
 
 
 
 
 
 
Weighted-average common shares outstanding
 
 
 
 
 
 
Basic
 
162,172,831

 
166,625,320

 
169,038,410

Dilutive effect of stock compensation awards
 
600,516

 
645,545

 
298,206

Diluted
 
162,773,347

 
167,270,865

 
169,336,616

Earnings per common share attributable to Cummins Inc.
 
 
 
 
 
 
Basic
 
$
13.20

 
$
5.99

 
$
8.25

Diluted
 
13.15

 
5.97

 
8.23


The weighted-average diluted common shares outstanding excludes the anti-dilutive effect of certain stock options since such options had an exercise price in excess of the monthly average market value of our common stock. The options excluded from diluted earnings per share were as follows:
 
 
Years ended December 31,
 
 
2018
 
2017
 
2016
Options excluded
 
969,385

 
31,991

 
1,091,799






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