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 March 31, 2018	Three Months Ended March 31, 2017
	(in millions)
As reported shares	1,011	993
Effect of options and performance share award units	5	7
Diluted shares	1,016	1,000

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 months ended March 31, 2018 and 2017.

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, 2017	1,008,532	(929	)	$	24,167		$	—	$	1,361		$	25,528
Consolidated net income attributable to Southern Company	—	—		938			—		—			938
Other comprehensive income	—	—		30			—		—			30
Stock issued	4,055	—		113			—		—			113
Stock-based compensation	—	—		36			—		—			36
Cash dividends on common stock	—	—		(586		)	—		—			(586		)
Contributions from noncontrolling interests	—	—		—			—		9			9
Distributions to noncontrolling interests	—	—		—			—		(13		)	(13		)
Net income (loss) attributable to noncontrolling interests	—	—		—			—		(6		)	(6		)
Other	—	(33	)	(22		)	—		(2		)	(24		)
Balance at March 31, 2018	1,012,587	(962	)	$	24,676		$	—	$	1,349		$	26,025

Balance at December 31, 2016	991,213	(819	)	$	24,758		$	609	$	1,245		$	26,612
Consolidated net income attributable to Southern Company	—	—		658			—		—			658
Other comprehensive income (loss)	—	—		(9		)	—		—			(9		)
Stock issued	4,240	—		186			—		—			186
Stock-based compensation	—	—		57			—		—			57
Cash dividends on common stock	—	—		(556		)	—		—			(556		)
Contributions from noncontrolling interests	—	—		—			—		71			71
Distributions to noncontrolling interests	—	—		—			—		(18		)	(18		)
Net income (loss) attributable to noncontrolling interests	—	—		—			—		(4		)	(4		)
Other	—	(35	)	—			—		(1		)	(1		)
Balance at March 31, 2017	995,453	(854	)	$	25,094		$	609	$	1,293		$	26,996


(*)	Primarily related to Southern Power Company and excludes redeemable noncontrolling interests. See Note 10 to the financial statements of Southern Power in Item 8 of the Form 10-K for additional information.