Earnings Per Share

9 Months Ended

Sep. 30, 2020

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, 2020 and 2019, where income represents the numerator and weighted average shares represent the denominator.


Three Months Ended September 30,	2020					2019
(in millions, except per share data)	Loss		Shares	$ per Share		Income		Shares	$ per Share

BASIC EARNINGS (LOSS) PER SHARE
Income (loss) from continuing operations attributable to The AES Corporation common stockholders	$	(333)	665	$	(0.50)	$	210	664	$	0.32
EFFECT OF DILUTIVE SECURITIES


Restricted stock units	—		—	—		—		3	—
DILUTED EARNINGS (LOSS) PER SHARE	$	(333)	665	$	(0.50)	$	210	667	$	0.32


Nine Months Ended September 30,	2020					2019
(in millions, except per share data)	Loss		Shares	$ per Share		Income		Shares	$ per Share

BASIC EARNINGS (LOSS) PER SHARE
Income (loss) from continuing operations attributable to The AES Corporation common stockholders	$	(275)	665	$	(0.41)	$	380	663	$	0.57
EFFECT OF DILUTIVE SECURITIES

Stock options	—		—	—		—		1	—
Restricted stock units	—		—	—		—		3	—
DILUTED EARNINGS PER SHARE	$	(275)	665	$	(0.41)	$	380	667	$	0.57

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

For the three and nine months ended September 30, 2020, the calculation of diluted earnings per share excluded 6 million outstanding stock awards because their impact would be anti-dilutive given the loss from continuing operations. These stock awards could potentially dilute basic earnings per share in the future. Had the Company generated income, 3 million potential shares of common stock related to the stock awards would have been included in diluted weighted-average shares outstanding.