You are asked to analyze NCR Corporation’s EPS. NCR is a business solution company manufacturing automated teller machines (ATMs), point of sale (POS) terminals and devices, and self-service kiosks. Use the note disclosure to answer the questions that follow the disclosure.

Required

a. NCR’s net income on the income statement is different than net income available for common stockholders in earnings per share in all years. What does the fact that the amounts are not the same suggest?

b. What types of securities create the difference between NCR’s basic income from continuing operations and diluted income from continuing operations? What is the difference between NCR’s basic income and diluted income each year?

c. What types of securities create the difference between NCR’s basic shares and diluted shares? What is the difference between NCR’s basic shares and diluted shares each year?

d. What are the percentage differences in income from continuing operations, basic EPS for income from continuing operations, and diluted EPS for income from continuing operations from 2017 to 2019? Comment on the changes.

e. What are the percentage differences in basic and diluted EPS for income from continuing operations and the weighted-average number of shares for income from continuing operations used for basic and diluted EPS? Comment on changes over time.

f. If you were an analyst, what further information would you want to assess changes in EPS over time?

NCR Corporation, December 31, 2019, Financial Statements (excerpt) NCR Corporation NOTE 1. Basis of presentation and significant accounting policies Earnings per Share The components of basic earnings (loss) per share are as follows: Numerator: Income (loss) from continuing operations Series A convertible preferred stock dividends Net income (loss) from continuing operations attributable to NCR common stockholders Loss (income) from discontinued operations, net of tax Net income (loss) attributable to NCR common stockholders Denominator: Basic weighted average number of shares outstanding Basic eamings (loss) per share: From continuing operations From discontinued operations Total basic earnings (loss) per share Twelve months ended December 31 2019 2018 2017 In millions, except per share amounts $ 614 (110) $ 504 $ 454 $ (50) 122.1 4.13 (0.41) 3.72 $ (36) (49) (85) (52) (137) 118.4 (0.72) (0.44) (1.16) $ $ 237 (109) 128 (5) 123 121.9 1.05 (0.04) $ 1.01