Earnings Per Share (EPS) and Dividends

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:




	Three Months Ended September 30,								Nine Months Ended September 30,
	2018				2017				2018				2017
	Basic		Diluted		Basic		Diluted		Basic		Diluted		Basic		Diluted
EPS Numerator (Millions):
Net Income	$	412	$	412	$	395	$	395	$	1,239	$	1,239	$	618	$	618
EPS Denominator (Millions):
Weighted Average Common Shares Outstanding	504		504		505		505		504		504		505		505
Effect of Stock Based Compensation Awards	—		3		—		2		—		3		—		2
Total Shares	504		507		505		507		504		507		505		507

EPS
Net Income	$	0.82	$	0.81	$	0.78	$	0.78	$	2.46	$	2.44	$	1.22	$	1.22

For the three months and nine months ended September 30, 2017, there were approximately 0.3 million stock options excluded from the weighted average common shares used for diluted EPS due to their antidilutive effect.

Dividends




	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Dividend Payments on Common Stock	2018		2017		2018		2017
Per Share	$	0.45	$	0.43	$	1.35	$	1.29
In Millions	$	227	$	217	$	682	$	652