COMMON STOCK

Basic Earnings Per Share (EPS) is computed by dividing net income attributable to Duke Energy common shareholders, adjusted for distributed and undistributed earnings allocated to participating securities, by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income attributable to Duke Energy common shareholders, as adjusted for distributed and undistributed earnings allocated to participating securities, by the diluted weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock, such as stock options, phantom shares and stock-based performance unit awards were exercised or settled. Duke Energy’s participating securities are restricted stock units that are entitled to dividends declared on Duke Energy common shares during the restricted stock units’ vesting period.

On July 2, 2012, just prior to the close of the merger with Progress Energy, Duke Energy executed a one-for-three reverse stock split. All earnings per share amounts included in this 10-K are presented as if the one-for-three reverse stock split had been effective January 1, 2012. The following table presents Duke Energy’s basic and diluted EPS calculations and reconciles the weighted-average number of common shares outstanding to the diluted weighted-average number of common shares outstanding.



	Years Ended December 31,
(in millions, except per share amounts)	2014		2013	2012
Income from continuing operations attributable to Duke Energy common shareholders excluding impact of participating securities	2,446		2,565	1,588
Weighted-average shares outstanding - basic	707		706	574
Stock options, performance and restricted shares	—		—	1
Weighted-average shares outstanding - diluted	707		706	575
Earnings per share from continuing operations attributable to Duke Energy common shareholders
Basic	$	3.46	3.64	2.77
Diluted	$	3.46	3.63	2.77
Potentially dilutive items excluded from the calculation^(a)	2		2	1
Dividends declared per common share	$	3.15	3.09	3.03


(a)	Stock options and performance and unvested stock awards were not included in the dilutive securities calculation because either the option exercise prices were greater than the average market price of the common shares during those periods, or performance measures related to the awards had not yet been met.