Earnings Per Share

6 Months Ended

Jun. 30, 2017

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. 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 June 30 used in the EPS calculation are:



	Three Months				Six Months
	2017		2016		2017		2016
Income (Numerator)
Net income	$	292	$	483	$	695	$	964
Less amounts allocated to participating securities	—		1		1		3
Net income available to PPL common shareowners - Basic and Diluted	$	292	$	482	$	694	$	961

Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	683,841		677,145		682,370		676,293
Add incremental non-participating securities:
Share-based payment awards	2,510		3,584		2,355		3,480
Weighted-average shares - Diluted EPS	686,351		680,729		684,725		679,773

Basic EPS
Net Income available to PPL common shareowners	$	0.43	$	0.71	$	1.02	$	1.42

Diluted EPS
Net Income available to PPL common shareowners	$	0.43	$	0.71	$	1.01	$	1.41

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



	Three Months		Six Months
	2017	2016	2017	2016
Stock-based compensation plans (a)	564	795	1,451	2,920
DRIP	369	370	814	772


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



	Three Months		Six Months
	2017	2016	2017	2016
Stock options	696	696	696	696
Performance units	—	78	—	39