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Earnings Per Share
 3 Months Ended
Mar. 31, 2013
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 applicable period. Diluted EPS is computed by dividing income available to PPL common shareowners 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 or the If-Converted Method, as applicable. The If-Converted Method was applied to the Equity Units beginning in the first quarter of 2013. Incremental non-participating securities that have a dilutive impact are detailed in the table below.

 

Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended March 31 used in the EPS calculation are:

           Three Months
         2013 2012
Income (Numerator)            
Net income attributable to PPL shareowners       $ 413 $ 541
Less amounts allocated to participating securities         2   3
Net income available to PPL common shareowners - Basic         411   538
Plus interest charges (net of tax) related to Equity Units     15   
Net income available to PPL common shareowners - Diluted       $ 426 $ 538
                
Shares of Common Stock (Denominator)            
Weighted-average shares - Basic EPS         582,640   579,041
Add incremental non-participating securities:            
  Share-based payment awards         810   486
  Equity Units         71,990   
  Forward sale agreements         1,580   
Weighted-average shares - Diluted EPS         657,020   579,527
                
Basic EPS             
  Net Income Available to PPL common shareowners       $ 0.70 $ 0.93
                
Diluted EPS             
  Net Income Available to PPL common shareowners       $ 0.65 $ 0.93

For the periods ended March 31, PPL issued common stock related to stock-based compensation plans, ESOP and DRIP as follows:

(Shares in thousands)  Three Months
     2013  2012
Stock-based compensation plans (a)   446   277
ESOP   275   280
DRIP   549   558

(a)       Includes stock options exercised, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors.

 

In April 2013, PPL settled certain forward sale agreements. See Note 7 for additional information.

 

For the periods ended March 31, the following were excluded from the computations of diluted EPS because the effect would have been antidilutive.

        Three Months
(Shares in thousands)     2013 2012
             
Stock options         6,589   5,682
Performance units         206   195
Restricted stock units         116