Cummins Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Cover
- DOCUMENT COVER Document
Financial Statements
Notes to Financial Statements
Accounting Policies
- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
Notes Tables
Notes Details

STOCK INCENTIVE AND STOCK OPTION PLANS (Details 2) Share Based Activity

v3.19.3.a.u2

STOCK INCENTIVE AND STOCK OPTION PLANS (Details 2) Share Based Activity - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock option plan activity
Balance, at the beginning of the period (in shares)	3,243,662	2,901,369	2,734,764
Granted (in shares)	710,120	515,320	648,900
Exercised (in shares)	(652,980)	(140,133)	(355,479)
Forfeited (in shares)	(63,232)	(32,894)	(126,816)
Balance, at the end of the period (in shares)	3,237,570	3,243,662	2,901,369
Weighted average exercise price activity
Weighted-average Exercise Price at the beginning of the period (in dollars per share)	$ 130.55	$ 123.49	$ 115.02
Weighted-average Exercise Price Granted (in dollars per share)	163.42	159.06	149.98
Weighted-average Exercise Price Exercised (in dollars per share)	116.76	88.74	105.91
Weighted-average Exercise Price Forfeited (in dollars per share)	139.86	133.00	125.65
Weighted-average Exercise Price at the end of the period (in dollars per share)	$ 140.36	$ 130.55	$ 123.49
Weighted-average remaining contractual life of options outstanding	6 years 7 months 6 days
Aggregate intrinsic value of options outstanding	$ 125
Exercisable (in shares)	1,665,710	1,366,722	1,063,889
Weighted-average Exercise Price Exercisable (in dollars per share)	$ 123.55	$ 124.97	$ 115.26
Weighted-average remaining contractual life of options exercisable	4 years 9 months 18 days	4 years 8 months 12 days	4 years 8 months 12 days
Aggregate intrinsic value of options exercisable	$ 92	$ 18	$ 66
Weighted average grant date fair value of options granted (in dollars per share)	$ 31.04	$ 34.21	$ 36.86
Total intrinsic value of options exercised	$ 35	$ 9	$ 19

- Definition

The number of shares into which fully or partially vested stock options outstanding as of the balance sheet date can be currently converted under the option plan.

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The weighted-average price as of the balance sheet date at which grantees can acquire the shares reserved for issuance on vested portions of options outstanding and currently exercisable under the stock option plan.

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Amount of accumulated difference between fair value of underlying shares on dates of exercise and exercise price on options exercised (or share units converted) into shares.

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The number of shares under options that were cancelled during the reporting period as a result of occurrence of a terminating event specified in contractual agreements pertaining to the stock option plan.

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Net number of share options (or share units) granted during the period.

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The weighted average grant-date fair value of options granted during the reporting period as calculated by applying the disclosed option pricing methodology.

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Amount by which the current fair value of the underlying stock exceeds the exercise price of options outstanding.

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Number of options outstanding, including both vested and non-vested options.

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A roll forward is a reconciliation of a concept from the beginning of a period to the end of a period.

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Weighted average price at which grantees can acquire the shares reserved for issuance under the stock option plan.

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Weighted average price at which option holders acquired shares when converting their stock options into shares.

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Weighted average price at which grantees could have acquired the underlying shares with respect to stock options that were terminated.

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Weighted average per share amount at which grantees can acquire shares of common stock by exercise of options.

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Amount of difference between fair value of the underlying shares reserved for issuance and exercise price of vested portions of options outstanding and currently exercisable.

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Weighted average remaining contractual term for vested portions of options outstanding and currently exercisable or convertible, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents the reported fact of one year, five months, and thirteen days.

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Weighted average remaining contractual term for option awards outstanding, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents the reported fact of one year, five months, and thirteen days.

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Number of share options (or share units) exercised during the current period.

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