Earnings Per Share

3 Months Ended

Mar. 31, 2016

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. 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
		2016		2015
Income (Numerator)
Income from continuing operations after income taxes		$	481	$	552
Less amounts allocated to participating securities			2		3
Income from continuing operations after income taxes available to PPL common shareowners - Basic and Diluted		$	479	$	549

Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic
and Diluted				$	95

Net income		$	481	$	647
Less amounts allocated to participating securities			2		3
Net income available to PPL common shareowners - Basic and Diluted		$	479	$	644

Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS			675,441		666,974
Add incremental non-participating securities:
	Share-based payment awards		3,376		1,758
Weighted-average shares - Diluted EPS			678,817		668,732

Basic EPS
Available to PPL common shareowners:
	Income from continuing operations after income taxes	$	0.71	$	0.83
	Income (loss) from discontinued operations (net of income taxes)				0.14
	Net Income	$	0.71	$	0.97

Diluted EPS
Available to PPL common shareowners:
	Income from continuing operations after income taxes	$	0.71	$	0.82
	Income (loss) from discontinued operations (net of income taxes)				0.14
	Net Income	$	0.71	$	0.96

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

	Three Months
	2016		2015

Stock-based compensation plans (a)		2,125		1,445
DRIP		402		419

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

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

	Three Months
	2016		2015

Stock options		696		1,473
Performance units				146