Earnings Per Share

12 Months Ended

Dec. 31, 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 years ended December 31, 2020, 2019 and 2018,

where income represents the numerator and weighted-average shares represent the denominator.


Year Ended December 31,	2020					2019					2018
(in millions, except per share data)	Income		Shares	$ per Share		Income		Shares	$ per Share		Income		Shares	$ per Share
BASIC EARNINGS PER SHARE
Income (loss) from continuing operations attributable to The AES Corporation common stockholders	$	43	665	$	0.06	$	302	664	$	0.46	$	985	662	$	1.49
EFFECT OF DILUTIVE SECURITIES

Stock options	—		1	—		—		—	—		—		—	—
Restricted stock units	—		2	—		—		3	(0.01)		—		3	(0.01)
DILUTED EARNINGS PER SHARE	$	43	668	$	0.06	$	302	667	$	0.45	$	985	665	$	1.48

The calculation of diluted earnings per share excluded 2 million outstanding stock awards for the year ended December 31, 2018, which would be anti-dilutive. These stock awards could potentially dilute basic earnings per share in the future.