Earnings Per Share

3 Months Ended

Mar. 31, 2020

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. These dilutive securities include the PPL common stock forward sale agreements, which were settled in 2019. The forward sale agreements were dilutive under the Treasury Stock Method to the extent the average stock price of PPL's common shares exceeded the forward sale price prescribed in the agreements.

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



	Three Months
	2020		2019
Income (Numerator)
Net income	$	554	$	466
Less amounts allocated to participating securities	1		—
Net income available to PPL common shareowners - Basic and Diluted	$	553	$	466

Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	767,948		721,023
Add incremental non-participating securities:
Share-based payment awards	790		1,023
Forward sale agreements	—		7,907
Weighted-average shares - Diluted EPS	768,738		729,953

Basic EPS
Net Income available to PPL common shareowners	$	0.72	$	0.65

Diluted EPS
Net Income available to PPL common shareowners	$	0.72	$	0.64

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



	Three Months
	2020	2019
Stock-based compensation plans	598	590
DRIP	434	458

For the period 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
	2020	2019
Stock-based compensation awards	250	—