Earnings (Loss) Per Share for Talen Energy Corporation

9 Months Ended

Sep. 30, 2015

Earnings (Loss) Per Share for Talen Energy Corporation

On June 1, 2015, the spinoff date, Talen Energy Corporation issued 128,499,023 shares of common stock, including 83,524,365 shares issued to PPL's shareholders and 44,974,658 shares issued in a private placement to the Riverstone Holders. To calculate basic and diluted EPS for periods presented prior to June 1, 2015, Talen Energy Corporation used the shares issued to PPL's shareholders on the date of the spinoff as Talen Energy Corporation was a wholly owned subsidiary of PPL and no shares were outstanding prior to that date. The calculation of basic and diluted earnings per share for the three and nine months ended September 30, 2015 utilized the weighted-average shares outstanding during this period assuming the shares issued to PPL's shareholders were outstanding during the entire period and reflects the impact of the private placement of shares to the Riverstone Holders on the spinoff date.

Basic EPS is computed by dividing income by the weighted-average number of common shares outstanding during the applicable period. Diluted EPS is computed by dividing income by the weighted-average number of common shares outstanding, increased by incremental shares that would be outstanding if potentially dilutive non-participating securities were converted to common shares as calculated using the Treasury Stock Method.

Reconciliations of the amounts of income and shares of Talen Energy Corporation common stock (in thousands) for the periods ended September 30 used in the EPS calculation are:



	Three Months					Nine Months
	2015			2014		2015			2014

Income (Numerator)
Income (Loss) from continuing operations after income taxes	$	(339	)	$	94	$	(218	)	$	38
Income (Loss) from discontinued operations (net of income taxes)	(62		)	7		(61		)	10
Net Income (Loss)	$	(401	)	$	101	$	(279	)	$	48
Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	128,509			83,524		103,627			83,524
Weighted-average shares - Diluted EPS	128,509			83,524		103,627			83,524

Share-based payment awards of 1,263 thousand and 525 thousand were excluded from the computations of diluted EPS for the three and nine months ended September 30, 2015 because the effect would have been antidilutive.