STOCKHOLDERS' EQUITY

Earnings per Share

For Southern Company, the only difference in computing basic and diluted earnings per share is attributable to awards outstanding under stock-based compensation plans. See Note 8 to the financial statements of Southern Company in Item 8 of the Form 10-K for information on stock-based compensation plans. The effect of stock-based compensation plans was determined using the treasury stock method. Shares used to compute diluted earnings per share were as follows:



	Three Months Ended June 30, 2018	Three Months Ended June 30, 2017	Six Months Ended June 30, 2018	Six Months Ended June 30, 2017
	(in millions)
As reported shares	1,014	998	1,012	996
Effect of stock-based compensation	—	7	5	7
Diluted shares	1,014	1,005	1,017	1,003

Stock-based compensation awards that were not included in the diluted earnings per share calculation because they were anti-dilutive totaled approximately 5.3 million shares for the three months ended June 30, 2018 and were immaterial for the three months ended June 30, 2017 and six months ended June 30, 2018 and 2017.

Changes in Stockholders' Equity

The following table presents year-to-date changes in stockholders' equity of Southern Company:



	Number of Common Shares			Common Stockholders' Equity			Preferred and Preference Stock of Subsidiaries						Total Stockholders' Equity
	Issued	Treasury		Common Stockholders' Equity			Preferred and Preference Stock of Subsidiaries			Noncontrolling Interests^(a)			Total Stockholders' Equity
	(in thousands)			(in millions)
Balance at December 31, 2017	1,008,532	(929	)	$	24,167		$	—		$	1,361		$	25,528
Consolidated net income attributable to Southern Company	—	—		784			—			—			784
Other comprehensive income	—	—		41			—			—			41
Stock issued	6,590	—		222			—			—			222
Stock-based compensation	—	—		48			—			—			48
Cash dividends on common stock	—	—		(1,194		)	—			—			(1,194		)
Contributions from noncontrolling interests	—	—		—			—			31			31
Distributions to noncontrolling interests	—	—		—			—			(42		)	(42		)
Net income attributable to noncontrolling interests	—	—		—			—			17			17
Sale of SPSH noncontrolling interests^(b)	—	—		(407		)	—			1,690			1,283
Other	—	(57	)	(25		)	—			(1		)	(26		)
Balance at June 30, 2018	1,015,122	(986	)	$	23,636		$	—		$	3,056		$	26,692

Balance at December 31, 2016	991,213	(819	)	$	24,758		$	609		$	1,245		$	26,612
Consolidated net income attributable to Southern Company	—	—		(723		)	—			—			(723		)
Other comprehensive income (loss)	—	—		(11		)	—			—			(11		)
Stock issued	9,129	—		417			—			—			417
Stock-based compensation	—	—		72			—			—			72
Cash dividends on common stock	—	—		(1,134		)	—			—			(1,134		)
Preference stock redemption	—	—		—			(150		)	—			(150		)
Contributions from noncontrolling interests	—	—		—			—			71			71
Distributions to noncontrolling interests	—	—		—			—			(40		)	(40		)
Net income attributable to noncontrolling interests	—	—		—			—			16			16
Reclassification from redeemable noncontrolling interests	—	—		—			—			114			114
Other	—	(49	)	(7		)	3			1			(3		)
Balance at June 30, 2017	1,000,342	(868	)	$	23,372		$	462		$	1,407		$	25,241


(a)	Primarily related to Southern Power Company and excludes redeemable noncontrolling interests. See Note 10 to the financial statements of Southern Power in Item 8 of the Form 10-K for additional information.


(b)	See Note (J) under "Southern Power – Sale of Solar Facility Interests" for additional information.