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 September 30 used in the EPS calculation are:



	Three Months				Nine Months
	2017		2016		2017		2016
Income (Numerator)
Net income	$	355	$	473	$	1,050	$	1,437
Less amounts allocated to participating securities	1		1		2		4
Net income available to PPL common shareowners - Basic and Diluted	$	354	$	472	$	1,048	$	1,433

Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	686,563		678,114		683,783		676,905
Add incremental non-participating securities:
Share-based payment awards	2,183		2,234		2,298		3,064
Weighted-average shares - Diluted EPS	688,746		680,348		686,081		679,969

Basic EPS
Net Income available to PPL common shareowners	$	0.52	$	0.70	$	1.53	$	2.12

Diluted EPS
Net Income available to PPL common shareowners	$	0.51	$	0.69	$	1.53	$	2.11

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
	2017	2016	2017	2016
Stock-based compensation plans (a)	256	248	1,707	3,168
DRIP	355	761	1,169	1,533


(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
	2017	2016	2017	2016
Stock options	696	696	696	696
Performance units	—	316	—	210