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Earnings Per Share
 12 Months Ended
Dec. 31, 2011
EARNINGS PER SHARE

24. EARNINGS PER SHARE

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 restricted stock units, 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.

The following table presents a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for income from continuing operations. In the table below, income represents the numerator (in millions) and shares represent the denominator (in millions):

    December 31, 2011 December 31, 2010 December 31, 2009
    Income Shares $ per Share Income Shares $ per Share Income Shares $ per Share
BASIC EARNINGS PER SHARE                        
 Income from continuing operations                         
  attributable to The AES Corporation                        
  common stockholders $ 451  778 $ 0.58 $ 476  769 $ 0.62 $ 718  667 $ 1.08
EFFECT OF DILUTIVE SECURITIES                        
 Stock options   -  2   -   -  2   -   -  1   -
 Restricted stock units   -  3   -   -  3   -   -  2   (0.01)
DILUTED EARNINGS PER SHARE $ 451  783 $ 0.58 $ 476  774 $ 0.62 $ 718  670 $ 1.07

The calculation of diluted earnings per share excluded 6,479,841, 16,618,137 and 18,035,813 options outstanding at December 31, 2011, 2010 and 2009, respectively, that could potentially dilute basic earnings per share in the future. Those options were not included in the computation of diluted earnings per share because the exercise price of those options exceeded the average market price during the related period. In 2011, 2010 and 2009, all convertible debentures were omitted from the earnings per share calculation because they were antidilutive. In arriving at income attributable to AES Corporation common stockholders in computing basic earnings per share, dividends on preferred stock of our subsidiary were deducted.

In addition, on March 15, 2010, the Company issued 125,468,788 shares of common stock to an investor as described in Note 15—Equity.