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Earnings Per Share
 12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Earnings per share
EARNINGS PER SHARE

The Company presents both basic and diluted earnings per share of common stock (“EPS”) amounts. Basic EPS is calculated by dividing net earnings attributable to BorgWarner Inc. by the weighted average shares of common stock outstanding during the reporting period. Diluted EPS is calculated by dividing net earnings attributable to BorgWarner Inc. by the weighted average shares of common stock and common equivalent stock outstanding during the reporting period.

The dilutive impact of stock-based compensation is calculated using the treasury stock method. The treasury stock method assumes that the Company uses the assumed proceeds from the exercise of awards to repurchase common stock at the average market price during the period. The assumed proceeds under the treasury stock method include the purchase price that the grantee will pay in the future, and compensation cost for future service that the Company has not yet recognized. Options are only dilutive when the average market price of the underlying common stock exceeds the exercise price of the options. The dilutive effects of performance-based stock awards described in Note 13, "Stock-Based Compensation," to the Consolidated Financial Statements are included in the computation of diluted earnings per share at the level the related performance criteria are met through the respective balance sheet date.

The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share of common stock:
 
Year Ended December 31,
(in millions except share and per share amounts)
2019
 
2018
 
2017
Basic earnings per share:
 

 
 

 
 

Net earnings attributable to BorgWarner Inc.
$
746

 
$
931

 
$
440

Weighted average shares of common stock outstanding
205.7

 
208.2

 
210.4

Basic earnings per share of common stock
$
3.63

 
$
4.47

 
$
2.09

 
 
 
 
 
 
Diluted earnings per share:
 
 
 

 
 

Net earnings attributable to BorgWarner Inc.
$
746

 
$
931

 
$
440

 
 
 
 
 
 
Weighted average shares of common stock outstanding
205.7

 
208.2

 
210.4

Effect of stock-based compensation
1.1

 
1.3

 
1.1

Weighted average shares of common stock outstanding including dilutive shares
206.8


209.5

 
211.5

Diluted earnings per share of common stock
$
3.61

 
$
4.44

 
$
2.08

 
 
 
 
 
 
Antidilutive stock-based awards excluded from the calculation of diluted earnings per share
0.1

 
0.1

 
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