STOCKHOLDERS' EQUITY

Earnings per Share

For Southern Company, the only difference in computing basic and diluted earnings per share is attributable to awards outstanding under the stock option and performance share plans. See Note 8 to the financial statements of Southern Company in Item 8 of the Form 10-K for information on the stock option and performance share plans. The effect of both stock options and performance share award units was determined using the treasury stock method. Shares used to compute diluted earnings per share were as follows:



	Three Months Ended June 30, 2017	Three Months Ended June 30, 2016	Six Months Ended June 30, 2017	Six Months Ended June 30, 2016
	(in millions)
As reported shares	998	934	996	925
Effect of options and performance share award units	7	6	7	6
Diluted shares	1,005	940	1,003	931

Stock options and performance share award units that were not included in the diluted earnings per share calculation because they were anti-dilutive were immaterial for the three and six months ended June 30, 2017 and 2016.

Changes in Stockholders' Equity

The following table presents year-to-date changes in stockholders' equity of Southern Company:



	Number of Common Shares			Common Stockholders' Equity			Preferred and Preference Stock of Subsidiaries						Total Stockholders' Equity
	Issued	Treasury		Common Stockholders' Equity			Preferred and Preference Stock of Subsidiaries			Noncontrolling Interests^(*)			Total Stockholders' Equity
	(in thousands)			(in millions)
Balance at December 31, 2016	991,213	(819	)	$	24,758		$	609		$	1,245		$	26,612
Consolidated net income (loss) attributable to Southern Company	—	—		(723		)	—			—			(723		)
Other comprehensive income (loss)	—	—		(11		)	—			—			(11		)
Stock issued	9,129	—		417			—			—			417
Stock-based compensation	—	—		72			—			—			72
Cash dividends on common stock	—	—		(1,134		)	—			—			(1,134		)
Preference stock redemption	—	—		—			(150		)	—			(150		)
Contributions from noncontrolling interests	—	—		—						71			71
Distributions to noncontrolling interests	—	—		—			—			(40		)	(40		)
Net income attributable to noncontrolling interests	—	—		—			—			16			16
Reclassification from redeemable noncontrolling interests	—	—		—			—			114			114
Other	—	(49	)	(7		)	3			1			(3		)
Balance at June 30, 2017	1,000,342	(868	)	$	23,372		$	462		$	1,407		$	25,241

Balance at December 31, 2015	915,073	(3,352	)	$	20,592		$	609		$	781		$	21,982
Consolidated net income attributable to Southern Company	—	—		1,112			—			—			1,112
Other comprehensive income (loss)	—	—		(117		)	—			—			(117		)
Stock issued	27,297	2,599		1,383			—			—			1,383
Stock-based compensation	—	—		67			—			—			67
Cash dividends on common stock	—	—		(1,023		)	—			—			(1,023		)
Contributions from noncontrolling interests	—	—		—			—			169			169
Distributions to noncontrolling interests	—	—		—			—			(10		)	(10		)
Purchase of membership interests from noncontrolling interests	—	—		—			—			(129		)	(129		)
Net income attributable to noncontrolling interests	—	—		—			—			11			11
Other	—	(19	)	1			—			—			1
Balance at June 30, 2016	942,370	(772	)	$	22,015		$	609		$	822		$	23,446

(*)

Related to Southern Power Company and excludes redeemable noncontrolling interests. In April 2017, approximately $114 million was reclassified from redeemable noncontrolling interests to noncontrolling interests, included in stockholder's equity, due to the expiration of SunPower Corp's option to require Southern Power to purchase its membership interests in one of the solar partnerships. See Note 10 to the financial statements of Southern Power in Item 8 of the Form 10-K for additional information.