Basic EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of shares outstanding that are increased for additional shares that would be outstanding if potentially dilutive non-participating securities were converted to common shares. In 2011 and 2010, these securities included stock options, performance units granted under incentive compensation plans and the 2010 Purchase Contract component of the 2010 Equity Units. Additionally, in 2011, these securities included the 2011 Purchase Contract component of the 2011 Equity Units. The 2011 Purchase Contracts will be dilutive only if the average VWAP of PPL's common stock for a certain period exceeds approximately $30.99. The 2010 Purchase Contracts will be dilutive only if the average VWAP of PPL's common stock for a certain period exceeds $28.80. Because the average VWAP has not exceeded either applicable value since issuance, the 2011 and 2010 Purchase Contracts were excluded from the diluted EPS calculations. Subject to antidilution adjustments at June 30, 2011, the maximum number of shares issuable to settle the Purchase Contracts was 105,202,345 shares, including 86,552,565 shares that could be issued under standard provisions of the Purchase Contracts and 18,649,780 shares that could be issued under make-whole provisions in the event of early settlement upon a Fundamental Change. See Note 7 for additional information on the 2011 Equity Units.

Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended June 30 used in the EPS calculation are:

			Three Months				Six Months
			2011		2010		2011		2010
Income (Numerator)
Income from continuing operations after income taxes attributable to PPL			$	197	$	78	$	595	$	320
Less amounts allocated to participating securities				1				3		1
Income from continuing operations after income taxes available to PPL
	common shareowners		$	196	$	78	$	592	$	319

Income (loss) from discontinued operations (net of income taxes) available
	to PPL		$	(1)	$	7	$	2	$	15

Net income attributable to PPL			$	196	$	85	$	597	$	335
Less amounts allocated to participating securities				1				3		1
Net income available to PPL common shareowners			$	195	$	85	$	594	$	334

Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS				561,652		381,896		522,897		379,810
Add incremental non-participating securities:
		Stock options and performance units		367		179		287		224
Weighted-average shares - Diluted EPS				562,019		382,075		523,184		380,034

Basic EPS
Available to PPL common shareowners:
		Income from continuing operations after income taxes	$	0.35	$	0.20	$	1.13	$	0.84
		Income (loss) from discontinued operations (net of income taxes)				0.02		0.01		0.04
Net Income			$	0.35	$	0.22	$	1.14	$	0.88

Diluted EPS
Available to PPL common shareowners:
		Income from continuing operations after income taxes	$	0.35	$	0.20	$	1.13	$	0.84
		Income (loss) from discontinued operations (net of income taxes)				0.02		0.01		0.04
Net Income			$	0.35	$	0.22	$	1.14	$	0.88

For the periods ended June 30 the following stock options to purchase PPL common stock and performance units were excluded from the computations of diluted EPS because the effect would have been antidilutive.

During the three and six months ended June 30, 2011, PPL issued 48,592 and 392,972 shares of common stock related to the exercise of stock options, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors under its stock-based compensation plans. In addition, PPL issued 598,198 and 1,179,909 shares of common stock related to its DRIP during the three and six months ended June 30, 2011. PPL also issued 301,319 shares related to its ESOP during the six months ended June 30, 2011.

See Note 7 for information on the April 2011 issuance of common stock and 2011 Equity Units.