Earnings Per Share and Equity (Exelon)

6 Months Ended

Jun. 30, 2011

Earnings Per Share and Equity [Abstract]

Earnings Per Share and Equity (Exelon)

12. Earnings Per Share and Equity (Exelon)

Earnings per Share

Diluted earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding, including shares to be issued upon exercise of stock options, performance share awards and restricted stock outstanding under Exelon's long-term incentive plans considered to be common stock equivalents. The following table sets forth the components of basic and diluted earnings per share and shows the effect of these stock options, performance share awards and restricted stock on the weighted average number of shares outstanding used in calculating diluted earnings per share:

			Three Months Ended June 30,				Six Months Ended June 30,
			2011		2010		2011		2010
Net income		$	620	$	445	$	1,288	$	1,194
Average common shares outstanding — basic			663		661		663		661
Assumed exercise of stock options, performance share awards
	and restricted stock		1		1		1		1
Average common shares outstanding — diluted			664		662		664		662

The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 10million and 9 million for the three and six months ended June 30, 2011, respectively, and 9 million and 6million for the three and six months ended June 30, 2010, respectively.

Under share repurchase programs, 35 million shares of common stock are held as treasury stock with a cost of $2.3 billion as of June 30, 2011. In 2008, Exelon management decided to defer indefinitely any share repurchases.