Earnings Per Share

9 Months Ended

Sep. 30, 2014

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. 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 September 30 used in the EPS calculation are:

			Three Months				Nine Months
			2014		2013		2014		2013
Income (Numerator)
Income from continuing operations after income taxes attributable to PPL
	shareowners		$	490	$	403	$	1,032	$	1,198
Less amounts allocated to participating securities				2		2		5		6
Income from continuing operations after income taxes available to PPL
	common shareowners - Basic			488		401		1,027		1,192
Plus interest charges (net of tax) related to Equity Units (a)						7		9		37
Income from continuing operations after income taxes available to PPL
	common shareowners - Diluted		$	488	$	408	$	1,036	$	1,229
Income (loss) from discontinued operations (net of income taxes) available
	to PPL common shareowners - Basic and Diluted		$	7	$	7	$	10	$	30
Net income attributable to PPL shareowners			$	497	$	410	$	1,042	$	1,228
Less amounts allocated to participating securities				2		2		5		6
Net income available to PPL common shareowners - Basic				495		408		1,037		1,222
Plus interest charges (net of tax) related to Equity Units (a)						7		9		37
Net income available to PPL common shareowners - Diluted			$	495	$	415	$	1,046	$	1,259
Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS				664,432		631,046		649,561		601,275
Add incremental non-participating securities:
		Share-based payment awards		1,970		1,163		1,860		1,035
		Equity Units (a)				32,134		14,080		59,171
		Forward sale agreements								613
Weighted-average shares - Diluted EPS				666,402		664,343		665,501		662,094
Basic EPS
Available to PPL common shareowners:
		Income from continuing operations after income taxes	$	0.73	$	0.64	$	1.58	$	1.98
		Income (loss) from discontinued operations (net of income taxes)		0.01		0.01		0.02		0.05
		Net Income Available to PPL common shareowners	$	0.74	$	0.65	$	1.60	$	2.03
Diluted EPS
Available to PPL common shareowners:
		Income from continuing operations after income taxes	$	0.73	$	0.61	$	1.56	$	1.86
		Income (loss) from discontinued operations (net of income taxes)		0.01		0.01		0.01		0.04
		Net Income Available to PPL common shareowners	$	0.74	$	0.62	$	1.57	$	1.90

(a)The If-Converted Method was applied to the Equity Units prior to settlement. See Note 7 for additional information on the 2011 Equity Units, including the issuance of PPL common stock on May 1, 2014 to settle the 2011 Purchase Contracts.

For the periods ended September 30, PPL issued common stock related to stock-based compensation plans, ESOP and DRIP as follows (in thousands):

	Three Months				Nine Months
	2014		2013		2014		2013
Stock-based compensation plans (a)		210		85		2,228		1,469
ESOP								275
DRIP		425				425		549

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

For the periods ended September 30, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive.

	Three Months				Nine Months
	2014		2013		2014		2013
Stock options		527		1,136		1,901		4,793
Performance units				1				73
Restricted stock units						41		39