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

Annual report pursuant to Section 13 and 15(d)

EARNINGS PER SHARE

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2022

NOTE 21. EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.

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 excluded shares of common stock held in the Employee Benefits Trust (EBT) from the calculation of the weighted-average common shares outstanding until those shares are distributed from the EBT to the Retirement Savings Plan. The EBT was fully depleted at December 31, 2021. Following are the computations for basic and diluted earnings per share:


	Years ended December 31,
In millions, except per share amounts	2022		2021		2020
Net income attributable to Cummins Inc.	$	2,151	$	2,131	$	1,789

Weighted-average common shares outstanding
Basic	141.5		144.6		148.2
Dilutive effect of stock compensation awards	0.8		1.3		0.8
Diluted	142.3		145.9		149.0
Earnings per common share attributable to Cummins Inc.
Basic	$	15.20	$	14.74	$	12.07
Diluted	15.12		14.61		12.01

The weighted-average diluted common shares outstanding exclude the anti-dilutive effect of certain stock options. The options excluded from diluted earnings per share were as follows:


	Years ended December 31,
	2022	2021	2020
Options excluded	20,595	6,463	645,334