COMMON STOCK

Basic Earnings Per Share (EPS) is computed by dividing net income attributable to Duke Energy common shareholders, adjusted for distributed and undistributed earnings allocated to participating securities, by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income attributable to Duke Energy common shareholders, as adjusted for distributed and undistributed earnings allocated to participating securities, by the diluted weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock, such as stock options, phantom shares and stock-based performance unit awards, were exercised or settled. Duke Energy’s participating securities are restricted stock units that are entitled to dividends declared on Duke Energy common shares during the restricted stock unit’s vesting periods.

The following table presents Duke Energy’s basic and diluted EPS calculations and reconciles the weighted-average number of common shares outstanding to the diluted weighted-average number of common shares outstanding.



(In millions, except per-share amounts)	Income		Average Shares	EPS
Three Months Ended June 30, 2014
Income from continuing operations attributable to Duke Energy common shareholders, as adjusted for participating securities — basic and diluted	$	611	707	$	0.86
Three Months Ended June 30, 2013
Income from continuing operations attributable to Duke Energy common shareholders, as adjusted for participating securities — basic and diluted	$	340	706	$	0.48



(In millions, except per-share amounts)	Income		Average Shares	EPS
Six Months Ended June 30, 2014
Income from continuing operations attributable to Duke Energy common shareholders, as adjusted for participating securities — basic and diluted	$	516	707	$	0.73
Six Months Ended June 30, 2013
Income from continuing operations attributable to Duke Energy common shareholders, as adjusted for participating securities — basic	$	969	705	$	1.37
Effect of dilutive securities:
Stock options, performance and restricted shares	—		1
Income from continuing operations attributable to Duke Energy common shareholders, as adjusted for participating securities — diluted	$	969	706	$	1.37

As of June 30, 2014 and 2013, 2 million of stock options and performance and unvested stock awards were not included in the dilutive securities calculation in the above table because either the option exercise prices were greater than the average market price of the common shares during those periods, or performance measures related to the awards had not yet been met.

For the three months ended June 30, 2014 and 2013, Duke Energy declared dividends of $0.78 per share and $1.545 per share, respectively. For the six months ended June 30, 2014 and 2013, Duke Energy declared dividends of $1.56 per share and $2.31 per share, respectively.