Earnings Per Share

3 Months Ended

Mar. 31, 2016

Basic and diluted earnings per share are based on the weighted average number of shares of common stock and potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted earnings per share, includes the effects of dilutive RSUs, stock options and convertible securities. The effect of such potential common stock is computed using the treasury stock method or the if-converted method, as applicable. Presented below is a reconciliation, for the periods indicated, of the numerator and denominator of the basic and diluted earnings per share computation for income from continuing operations, where income represents the numerator and weighted average shares represents the denominator:



(in millions except per share data)	2016					2015
	Income		Shares	$ per Share		Income		Shares	$ per Share
Three Months Ended March 31,
BASIC EARNINGS PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	126	661	$	0.19	$	142	704	$	0.20
EFFECT OF DILUTIVE SECURITIES
Restricted stock units	—		2	—		—		2	—
DILUTED EARNINGS PER SHARE	$	126	663	$	0.19	$	142	706	$	0.20

For the three months ended March 31, the calculation of diluted earnings per share excluded 8 million and 6 million outstanding stock awards for 2016 and 2015, respectively, that could potentially dilute basic earnings per share in the future. Additionally, for the three months ended March 31, 2016 and 2015, all 15 million shares of potential common stock associated with convertible debentures were omitted from the earnings per share calculation. These were not included because the impact would have been anti-dilutive.