EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2023

The Company’s basic earnings per share (“EPS”) is computed by dividing net income 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. Stock options, restricted stock units and performance stock units are considered dilutive securities.

A reconciliation of basic and diluted earnings per share is as follows (in millions of dollars and shares, except per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Basic EPS attributable to common shareholders
Net income (loss) attributable to CNH Industrial	$	567	$	556	$	1,755	$	1,437
Weighted average common shares outstanding—basic	1,332		1,350		1,337		1,354
Basic EPS attributable to CNH Industrial N.V.	$	0.43	$	0.41	$	1.31	$	1.06
Diluted EPS attributable to common shareholders
Weighted average common shares outstanding—basic	1,332		1,350		1,337		1,354
Stock compensation plans (1)	19		5		18		5
Weighted average common shares outstanding—diluted	1,351		1,355		1,355		1,359
Diluted EPS attributable to CNH Industrial N.V.	$	0.42	$	0.41	$	1.30	$	1.06

(1) For the three and nine months ended September 30, 2023, no shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact. For the three and nine months ended September 30, 2022, 4.7 million and 2.0 million shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact.