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 December 31, used in the EPS calculation are:



	2017		2016		2015
Income (Numerator)
Income from continuing operations after income taxes	$	1,128	$	1,902	$	1,603
Less amounts allocated to participating securities	2		6		6
Income from continuing operations after income taxes available to PPL common shareowners - Basic and Diluted	$	1,126	$	1,896	$	1,597

Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted	$	—	$	—	$	(921	)

Net income	$	1,128	$	1,902	$	682
Less amounts allocated to participating securities	2		6		2
Net income available to PPL common shareowners - Basic and Diluted	$	1,126	$	1,896	$	680



	2017		2016		2015

Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	685,240		677,592		669,814
Add incremental non-participating securities:
Share-based payment awards (a)	2,094		2,854		2,772
Weighted-average shares - Diluted EPS	687,334		680,446		672,586

Basic EPS
Available to PPL common shareowners:
Income from continuing operations after income taxes	$	1.64	$	2.80	$	2.38
Income (loss) from discontinued operations (net of income taxes)	—		—		(1.37		)
Net Income	$	1.64	$	2.80	$	1.01
Diluted EPS
Available to PPL common shareowners:
Income from continuing operations after income taxes	$	1.64	$	2.79	$	2.37
Income (loss) from discontinued operations (net of income taxes)	—		—		(1.36		)
Net Income	$	1.64	$	2.79	$	1.01


(a)	The Treasury Stock Method was applied to non-participating share-based payment awards.

For the year ended December 31, PPL issued common stock related to stock-based compensation plans and DRIP as follows (in thousands):



	2017
Stock-based compensation plans (a)	1,748
DRIP	1,552


(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 ATM Program.

For the years ended December 31, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive:



	2017	2016	2015
Stock options	696	696	1,087
Performance units	—	176	36