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 2016, 2015 and 2014, outstanding securities representing a maximum of 87 million, 78 million and 59 million shares, respectively, were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive.

Basic earnings per share:

 

 

 

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

2016

2015

2014

Amounts attributable to ABB shareholders:

 

 

 

Income from continuing operations, net of tax

1,883

1,930

2,570

Income from discontinued operations, net of tax

16

3

24

Net income

1,899

1,933

2,594

 

 

 

 

Weighted-average number of shares outstanding (in millions)

2,151

2,226

2,288

 

 

 

 

Basic earnings per share attributable to ABB shareholders:

 

 

 

Income from continuing operations, net of tax

0.88

0.87

1.12

Income from discontinued operations, net of tax

0.01

Net income

0.88

0.87

1.13

Diluted earnings per share:

 

 

 

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

2016

2015

2014

Amounts attributable to ABB shareholders:

 

 

 

Income from continuing operations, net of tax

1,883

1,930

2,570

Income from discontinued operations, net of tax

16

3

24

Net income

1,899

1,933

2,594

 

 

 

 

Weighted-average number of shares outstanding (in millions)

2,151

2,226

2,288

Effect of dilutive securities:

 

 

 

Call options and shares

3

4

7

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

2,154

2,230

2,295

 

 

 

 

Diluted earnings per share attributable to ABB shareholders:

 

 

 

Income from continuing operations, net of tax

0.87

0.87

1.12

Income from discontinued operations, net of tax

0.01

0.01

Net income

0.88

0.87

1.13