Earnings Per Share (EPS) and Dividends

12 Months Ended

Dec. 31, 2016

EPS

Diluted EPS is calculated by dividing Net Income by the weighted average number of shares of common stock outstanding, including shares issuable upon exercise of stock options outstanding or vesting of restricted stock awards granted under PSEG’s stock compensation plans and upon payment of performance units or restricted stock units. The following table shows the effect of these stock options, performance units and restricted stock units on the weighted average number of shares outstanding used in calculating diluted EPS:




	Years Ended December 31,
	2016				2015		2014
	Basic		Diluted		Basic	Diluted	Basic		Diluted
EPS Numerator:
(Millions)
Net Income	$	887	$	887	1,679	1,679	$	1,518	$	1,518
EPS Denominator:
(Millions)
Weighted Average Common Shares Outstanding	505		505		505	505	506		506
Effect of Stock Based Compensation Awards	—		3		—	3	—		2
Total Shares	505		508		505	508	506		508
EPS:
Net Income	$	1.76	$	1.75	3.32	3.30	$	3.00	$	2.99

There were approximately 0.4 million, 0.5 million and 0.4 million stock options excluded from the weighted average common shares used for diluted EPS due to their antidilutive effect for the years ended December 31, 2016, 2015 and 2014, respectively. No other stock options had an antidilutive effect for the years ended December 31, 2016, 2015 or 2014.

Dividends




	Years Ended December 31,
Dividend Payments on Common Stock	2016		2015		2014
Per Share	$	1.64	$	1.56	$	1.48
in Millions	$	830	$	789	$	748

On February 21, 2017, PSEG’s Board of Directors approved a $0.43 per share common stock dividend for the first quarter of 2017.