5. 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. In 2019, these securities also included the PPL common stock forward sale agreements entered into in May 2018. See Note 8 in PPL's 2018 Form 10-K for additional information on these agreements. The forward sale agreements are dilutive under the Treasury Stock Method to the extent the average stock price of PPL's common shares exceeds the forward sale price prescribed in the agreements.

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
	2019		2018
Income (Numerator)
Net income	$	466	$	452
Less amounts allocated to participating securities	—		1
Net income available to PPL common shareowners - Basic and Diluted	$	466	$	451

Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	721,023		694,514
Add incremental non-participating securities:
Share-based payment awards	1,023		808
Forward sale agreements	7,907		—
Weighted-average shares - Diluted EPS	729,953		695,322

Basic EPS
Net Income available to PPL common shareowners	$	0.65	$	0.65

Diluted EPS
Net Income available to PPL common shareowners	$	0.64	$	0.65

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
	2019	2018
Stock-based compensation plans (a)	590	476
DRIP	458	485


(a)	Includes stock options exercised, vesting of performance units, vesting of 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
	2019	2018
Stock options	—	230
Restricted stock units	—	20