Earnings Per Share

9 Months Ended

Sep. 30, 2019

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 and stock options. The effect of such potential common stock is computed using the treasury stock method.

The following table is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for income from continuing operations for the three and nine months ended September 30, 2019 and 2018, where income represents the numerator and weighted average shares represent the denominator.



Three Months Ended September 30,	2019					2018
(in millions, except per share data)	Income		Shares	$ per Share		Income		Shares	$ per Share

BASIC EARNINGS PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	210	664	$	0.32	$	102	662	$	0.15
EFFECT OF DILUTIVE SECURITIES
Restricted stock units	—		3	—		—		3	—
DILUTED EARNINGS PER SHARE	$	210	667	$	0.32	$	102	665	$	0.15


Nine Months Ended September 30,	2019					2018
(in millions, except per share data)	Income		Shares	$ per Share		Income		Shares	$ per Share

BASIC EARNINGS PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	380	663	$	0.57	$	883	661	$	1.33
EFFECT OF DILUTIVE SECURITIES
Stock options	—		1	—		—		—	—
Restricted stock units	—		3	—		—		3	—
DILUTED EARNINGS PER SHARE	$	380	667	$	0.57	$	883	664	$	1.33

The calculation of diluted earnings per share excluded stock awards which would be anti-dilutive. The calculation of diluted earnings per share excluded 1 million and 2 million stock awards outstanding for the three and nine months ended September 30, 2019 and 2018, respectively, that could potentially dilute basic earnings per share in the future.