Earnings Per Share

12 Months Ended

Dec. 31, 2015

4. Earnings Per Share

(PPL)

Basic EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding during the applicable period. Diluted EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding, increased by incremental shares that would be outstanding if potentially dilutive non-participating securities were converted to common shares as calculated using the Treasury Stock Method or If-Converted Method, as applicable. Incremental non-participating securities that have a dilutive impact are detailed in the table below.

Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended December 31 used in the EPS calculation are:

			2015		2014		2013
Income (Numerator)
Income from continuing operations after income taxes			$	1,603	$	1,437	$	1,368
Less amounts allocated to participating securities				6		7		7
Income from continuing operations after income taxes available to PPL common
	shareowners - Basic			1,597		1,430		1,361
Plus interest charges (net of tax) related to Equity Units (a)						9		44
Income from continuing operations after income taxes available to PPL common
	shareowners - Diluted		$	1,597	$	1,439	$	1,405

Income (loss) from discontinued operations (net of income taxes) available to PPL
	common shareowners - Basic and Diluted		$	(921)	$	300	$	(238)

Net income			$	682	$	1,737	$	1,130
Less amounts allocated to participating securities				2		9		6
Net income available to PPL common shareowners - Basic				680		1,728		1,124
Plus interest charges (net of tax) related to Equity Units (a)						9		44
Net income available to PPL common shareowners - Diluted			$	680	$	1,737	$	1,168


Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS				669,814		653,504		608,983
Add incremental non-participating securities:
		Share-based payment awards (b)		2,772		1,910		1,062
		Equity Units (a)				10,559		52,568
		Forward sale agreements and purchase contracts (b)						460
Weighted-average shares - Diluted EPS				672,586		665,973		663,073

Basic EPS
Available to PPL common shareowners:
		Income from continuing operations after income taxes	$	2.38	$	2.19	$	2.24
		Income (loss) from discontinued operations (net of income taxes)		(1.37)		0.45		(0.39)
		Net Income	$	1.01	$	2.64	$	1.85

Diluted EPS
Available to PPL common shareowners:
		Income from continuing operations after income taxes	$	2.37	$	2.16	$	2.12
		Income (loss) from discontinued operations (net of income taxes)		(1.36)		0.45		(0.36)
		Net Income	$	1.01	$	2.61	$	1.76

(a) In 2014 and 2013, the If-Converted Method was applied to the Equity Units prior to settlement. See Note 7 for additional information on the Equity Units, including the issuance of PPL common stock to settle the Purchase contracts.

(b) The Treasury Stock Method was applied to non-participating share-based payment awards and forward sale agreements.

For the year ended December 31, PPL issued common stock related to stock-based compensation plans and DRIP as follows (in thousands):

	2015

Stock-based compensation plans (a)		4,853
DRIP		1,728

(a) Includes stock options exercised, vesting of performance units, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors.

See Note 7 for additional information on common stock issued under ATM Program.

For the years ended December 31, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive.

	2015		2014		2013

Stock options		1,087		1,816		4,446
Performance units		36		5		55
Restricted stock units				31		29