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Earnings Per Share (PPL Corp [Member])
 12 Months Ended
Dec. 31, 2011
PPL Corp [Member]
  
Earnings Per Share [Line Items]  
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 2011, 2010 and 2009, these securities included stock options and performance units granted under incentive compensation plans. Additionally, the 2011 and 2010 Purchase Contracts associated with the 2011 and 2010 Equity Units will be dilutive under the treasury stock method if the average VWAP of PPL's common stock for a certain period exceeds approximately $30.99 and $28.80. The 2011 Purchase Contracts were excluded from the diluted EPS calculations because they did not meet this criteria during 2011. The 2010 Purchase Contracts were included in the diluted EPS calculation for 2011 as they met this criteria for a portion of that year, but were excluded from the diluted EPS calculations for 2010 because they did not meet this criteria for that year. Subject to antidilution adjustments at December 31, 2011, the maximum number of shares issuable to settle the Purchase Contracts was 101,552,245 shares, including 86,552,565 shares that could be issued under standard provisions of the Purchase Contracts and 14,999,680 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 both the 2011 and 2010 Equity Units.

 

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

     2011 2010 2009
Income (Numerator)         
Income from continuing operations after income taxes attributable to PPL $ 1,493 $ 955 $ 414
Less amounts allocated to participating securities   6   4   2
Income from continuing operations after income taxes available to PPL common shareowners $ 1,487 $ 951 $ 412
             
Income (loss) from discontinued operations (net of income taxes) available to PPL $ 2 $ (17) $ (7)
             
Net income attributable to PPL $ 1,495 $ 938 $ 407
Less amounts allocated to participating securities   6   4   2
Net income available to PPL common shareowners $ 1,489 $ 934 $ 405
             
Shares of Common Stock (Denominator)         
Weighted-average shares - Basic EPS   550,395   431,345   376,082
Add incremental non-participating securities:         
  Stock options and performance units   400   224   324
  2010 Purchase Contracts   157      
Weighted-average shares - Diluted EPS   550,952   431,569   376,406
             
Basic EPS          
Available to PPL common shareowners:         
  Income from continuing operations after income taxes  $ 2.70 $ 2.21 $ 1.10
  Income (loss) from discontinued operations (net of income taxes)   0.01   (0.04)   (0.02)
Net Income $ 2.71 $ 2.17 $ 1.08
             
Diluted EPS          
Available to PPL common shareowners:         
  Income from continuing operations after income taxes  $ 2.70 $ 2.20 $ 1.10
  Income (loss) from discontinued operations (net of income taxes)      (0.03)   (0.02)
Net Income $ 2.70 $ 2.17 $ 1.08

During 2011, PPL issued 443,865 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 301,319 and 2,269,388 shares of common stock related to its ESOP and DRIP during 2011. See Note 12 for a discussion of PPL's stock-based compensation plans.

 

See Note 7 for information on the issuance of common stock and 2011 and 2010 Equity Units.

 

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

(Shares in thousands) 2011 2010 2009
          
Stock options   5,084   4,936   2,394
Performance units   2   45   1