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, 2019

NOTE 20. 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 exclude shares of common stock held in the Employee Benefits Trust (EBT) (see Note 16, "CUMMINS INC. 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,
In millions, except per share amounts	2019		2018		2017
Net income attributable to Cummins Inc.	$	2,260	$	2,141	$	999

Weighted-average common shares outstanding
Basic	155.4		162.2		166.7
Dilutive effect of stock compensation awards	0.7		0.6		0.6
Diluted	156.1		162.8		167.3
Earnings per common share attributable to Cummins Inc.
Basic	$	14.54	$	13.20	$	5.99
Diluted	14.48		13.15		5.97

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,
	2019	2018	2017
Options excluded	473,845	969,385	31,991