5. 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 March 31 used in the EPS calculation are:



	Three Months
	2018		2017
Income (Numerator)
Net income	$	452	$	403
Less amounts allocated to participating securities	1		1
Net income available to PPL common shareowners - Basic and Diluted	$	451	$	402

Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	694,514		680,882
Add incremental non-participating securities:
Share-based payment awards	808		2,202
Weighted-average shares - Diluted EPS	695,322		683,084



	Three Months
	2018		2017
Basic EPS
Net Income available to PPL common shareowners	$	0.65	$	0.59

Diluted EPS
Net Income available to PPL common shareowners	$	0.65	$	0.59

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



	Three Months
	2018	2017
Stock-based compensation plans (a)	476	887
DRIP	485	445


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

See Note 8 for additional information on common stock issued under the ATM Program.

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



	Three Months
	2018	2017
Stock options	230	696
Restricted stock units	20	—