Earnings Per Share

9 Months Ended

Sep. 30, 2015

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
			2015		2014		2015		2014
Income (Numerator)
Income from continuing operations after income taxes			$	396	$	410	$	1,198	$	1,029
Less amounts allocated to participating securities				2		2		5		5
Income from continuing operations after income taxes available to PPL
	common shareowners - Basic			394		408		1,193		1,024
Plus interest charges (net of tax) related to Equity Units (a)										9
Income from continuing operations after income taxes available to PPL
	common shareowners - Diluted		$	394	$	408	$	1,193	$	1,033

Income (loss) from discontinued operations (net of income taxes) available
	to PPL common shareowners - Basic and Diluted		$	(3)	$	87	$	(915)	$	13

Net income			$	393	$	497	$	283	$	1,042
Less amounts allocated to participating securities				2		2		1		5
Net income available to PPL common shareowners - Basic				391		495		282		1,037
Plus interest charges (net of tax) related to Equity Units (a)										9
Net income available to PPL common shareowners - Diluted			$	391	$	495	$	282	$	1,046

Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS				670,763		664,432		668,731		649,561
Add incremental non-participating securities:
		Share-based payment awards		2,939		1,970		2,523		1,860
		Equity Units (a)								14,080
Weighted-average shares - Diluted EPS				673,702		666,402		671,254		665,501

Basic EPS
Available to PPL common shareowners:
		Income from continuing operations after income taxes	$	0.59	$	0.61	$	1.78	$	1.58
		Income (loss) from discontinued operations (net of income taxes)		(0.01)		0.13		(1.36)		0.02
		Net Income Available to PPL common shareowners	$	0.58	$	0.74	$	0.42	$	1.60

Diluted EPS
Available to PPL common shareowners:
		Income from continuing operations after income taxes	$	0.59	$	0.61	$	1.78	$	1.55
		Income (loss) from discontinued operations (net of income taxes)		(0.01)		0.13		(1.36)		0.02
		Net Income Available to PPL common shareowners	$	0.58	$	0.74	$	0.42	$	1.57

(a) In 2014, the If-Converted Method was applied to the Equity Units prior to the March 2014 settlement.

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

	Three Months				Nine Months
	2015		2014		2015		2014

Stock-based compensation plans (a)		1,368		210		3,805		2,228
DRIP		475		425		1,318		425

(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.

See Note 7 for additional information on common stock issued under the ATM Program.

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
	2015		2014		2015		2014

Stock options		1,484		527		1,218		1,901
Performance units						49
Restricted stock units								41