Earnings Per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

4. Earnings Per Share

(PPL)

Basic EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of shares outstanding that are increased for additional shares that would be outstanding if potentially dilutive non-participating securities were converted to common shares as calculated using the treasury stock method. In 2012,2011 and 2010, these securities included stock options and performance units granted under incentive compensation plans and the Purchase Contracts associated with the 2011 and 2010 Equity Units. For 2012, these securities also included the PPL common stock forward sale agreements. See Note 7 for additional information on the forward sale agreements. The forward sale agreements were dilutive under the treasury stock method for 2012 because the average stock price of PPL's common shares exceeded the forward sale price indicated in the forward sale agreements.

The Purchase Contracts are dilutive under the treasury stock method if the average VWAP of PPL common stock for a certain period exceeds approximately $30.99 and $28.80 for the 2011 and 2010 Purchase Contracts. The 2010 Purchase Contracts were dilutive for 2012 and 2011. Subject to antidilution adjustments at December 31, 2012, the maximum number of shares issuable to settle the Purchase Contracts was 93.8 million shares, including 86.6 million shares that could be issued under standard provisions of the Purchase Contracts and7.2 million shares that could be issued under make-whole provisions in the event of early settlement upon a Fundamental Change. See Note 7 for additional information on the 2011 and 2010 Equity Units.

Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended December31 used in the EPS calculation are:

			2012		2011		2010
Income (Numerator)
Income from continuing operations after income taxes attributable to PPL shareowners			$	1,532	$	1,493	$	955
Less amounts allocated to participating securities				8		6		4
Less issuance costs on subsidiary's preferred securities redeemed				6
Income from continuing operations after income taxes available to PPL common shareowners			$	1,518	$	1,487	$	951
Income (loss) from discontinued operations (net of income taxes) available to PPL
	common shareowners		$	(6)	$	2	$	(17)
Net income attributable to PPL shareowners			$	1,526	$	1,495	$	938
Less amounts allocated to participating securities				8		6		4
Less issuance costs on subsidiary's preferred securities redeemed				6
Net income available to PPL common shareowners			$	1,512	$	1,489	$	934
Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS				580,276		550,395		431,345
Add incremental non-participating securities:
		Stock options and performance units		563		400		224
		2010 Purchase Contracts		195		157
		Forward sale agreements		592
Weighted-average shares - Diluted EPS				581,626		550,952		431,569
Basic EPS
Available to PPL common shareowners:
		Income from continuing operations after income taxes	$	2.62	$	2.70	$	2.21
		Income (loss) from discontinued operations (net of income taxes)		(0.01)		0.01		(0.04)
		Net Income	$	2.61	$	2.71	$	2.17
Diluted EPS
Available to PPL common shareowners:
		Income from continuing operations after income taxes	$	2.61	$	2.70	$	2.20
		Income (loss) from discontinued operations (net of income taxes)		(0.01)				(0.03)
		Net Income	$	2.60	$	2.70	$	2.17

During 2012, PPL issued 936,218 shares of common stock related to the exercise of stock options, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors under its stock-based compensation plans. In addition, PPL issued 279,945 and 2,326,917 shares of common stock related to its ESOP and DRIP during 2012. See Note 12 for a discussion of PPL's stock-based compensation plans.

The following stock options to purchase PPL common stock and performance units were excluded from the computations of diluted EPS for the years ended December 31 because the effect would have been antidilutive.

(Shares in thousands)	2012		2011		2010
Stock options		5,293		5,084		4,936
Performance units		58		2		45