Earnings per Share

12 Months Ended

Dec. 31, 2020

The Company’s basic earnings per share (“EPS”) is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period.

Diluted EPS reflects the potential dilution that could occur if dilutive securities were exercised into common stock. The effect of dilutive securities is calculated using the treasury stock method.

The following table sets forth the computation of basic EPS and diluted EPS for the years ended December 31, 2020, 2019 and 2018.


	2020		2019		2018
	(in millions, except per share data)
Basic:
Net income (loss) attributable to CNH Industrial	$	(493)	$	1,422	$	1,068
Weighted average common shares outstanding—basic	1,351		1,352		1,357
Basic earnings (loss) per share	$	(0.36)	$	1.05	$	0.79
Diluted:
Net income (loss) attributable to CNH Industrial	$	(493)	$	1,422	$	1,068
Weighted average common shares outstanding—basic	1,351		1,352		1,357
Effect of dilutive securities (when dilutive):
Stock compensation plans	—		2		4
Weighted average common shares outstanding—diluted (A)	1,351		1,354		1,361
Diluted earnings (loss) per share	$	(0.36)	$	1.05	$	0.78

(A) For the twelve months ended December 31, 2020, 1.2 million shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact.