5. 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. Incremental non-participating securities that have a dilutive impact are detailed in the table below. In 2018, these securities also included the PPL common stock forward sale agreements. See Note 8 for additional information on these agreements. The forward sale agreements are dilutive under the Treasury Stock Method to the extent the average stock price of PPL's common shares exceeds the forward sale price prescribed in the agreements.

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
	2018		2017		2018		2017
Income (Numerator)
Net income	$	515	$	292	$	967	$	695
Less amounts allocated to participating securities	—		—		1		1
Net income available to PPL common shareowners - Basic and Diluted	$	515	$	292	$	966	$	694

Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	699,006		683,841		696,772		682,370
Add incremental non-participating securities:
Share-based payment awards	173		2,510		491		2,355
Forward sale agreements	1,797		—		898		—
Weighted-average shares - Diluted EPS	700,976		686,351		698,161		684,725

Basic EPS
Net Income available to PPL common shareowners	$	0.74	$	0.43	$	1.39	$	1.02

Diluted EPS
Net Income available to PPL common shareowners	$	0.73	$	0.43	$	1.38	$	1.01

For the periods ended June 30, PPL issued common stock related to stock-based compensation plans and the DRIP as follows (in thousands):



	Three Months		Six Months
	2018	2017	2018	2017
Stock-based compensation plans (a)	12	564	488	1,451
DRIP	526	369	1,011	814


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

See Note 8 for additional information on common stock issued under the ATM Program.

For the periods ended June 30, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive.



	Three Months		Six Months
	2018	2017	2018	2017
Stock options	441	696	336	696
Restricted stock units	23	—	21	—