Note 20
Earnings per share

Basic earnings per share is calculated by dividing income by the weighted-average number of shares outstanding during the year. Diluted earnings per share is calculated by dividing income by the weighted-average number of shares outstanding during the year, assuming that all potentially dilutive securities were exercised, if dilutive. Potentially dilutive securities comprise outstanding written call options and outstanding options and shares granted subject to certain conditions under the Company’s share-based payment arrangements. In 2018, 2017 and 2016, outstanding securities representing a maximum of 88 million, 31 million and 87 million shares, respectively, were excluded from the calculation of diluted earnings per share as their inclusion would have been antidilutive.

Basic earnings per share:

Basic earnings per share:

 

 

 

($ in millions, except per share data in $)

2018

2017

2016

 

 

 

 

Amounts attributable to ABB shareholders:

 

 

 

Income from continuing operations, net of tax

1,514

1,441

1,172

Income from discontinued operations, net of tax

659

772

727

Net income

2,173

2,213

1,899

 

 

 

 

Weighted-average number of shares outstanding (in millions)

2,132

2,138

2,151

 

 

 

 

Basic earnings per share attributable to ABB shareholders:

 

 

 

Income from continuing operations, net of tax

0.71

0.67

0.54

Income from discontinued operations, net of tax

0.31

0.36

0.34

Net income

1.02

1.04

0.88

Diluted earnings per share:

Diluted earnings per share:

 

 

 

($ in millions, except per share data in $)

2018

2017

2016

 

 

 

 

Amounts attributable to ABB shareholders:

 

 

 

Income from continuing operations, net of tax

1,514

1,441

1,172

Income from discontinued operations, net of tax

659

772

727

Net income

2,173

2,213

1,899

 

 

 

 

Weighted-average number of shares outstanding (in millions)

2,132

2,138

2,151

Effect of dilutive securities:

 

 

 

Call options and shares

7

10

3

Adjusted weighted-average number of shares outstanding (in millions)

2,139

2,148

2,154

 

 

 

 

Diluted earnings per share attributable to ABB shareholders:

 

 

 

Income from continuing operations, net of tax

0.71

0.67

0.54

Income from discontinued operations, net of tax

0.31

0.36

0.34

Net income

1.02

1.03

0.88