Earnings Per Share

9 Months Ended

Sep. 30, 2019

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. These securities also include the PPL common stock forward sale agreements entered into in May 2018. See Note 8 in PPL's 2018 Form 10-K 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 September 30 used in the EPS calculation are:



	Three Months				Nine Months
	2019		2018		2019		2018
Income (Numerator)
Net income	$	475	$	445	$	1,382	$	1,412
Less amounts allocated to participating securities	—		1		2		2
Net income available to PPL common shareowners - Basic and Diluted	$	475	$	444	$	1,380	$	1,410

Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	722,259		703,730		721,693		699,117
Add incremental non-participating securities:
Share-based payment awards	1,106		298		1,009		427
Forward sale agreements	7,786		6,489		7,975		2,761
Weighted-average shares - Diluted EPS	731,151		710,517		730,677		702,305

Basic EPS
Net Income available to PPL common shareowners	$	0.66	$	0.63	$	1.91	$	2.02

Diluted EPS
Net Income available to PPL common shareowners	$	0.65	$	0.62	$	1.89	$	2.01

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



	Three Months		Nine Months
	2019	2018	2019	2018
Stock-based compensation plans (a)	38	80	680	568
DRIP	430	493	1,305	1,504


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

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



	Three Months		Nine Months
	2019	2018	2019	2018
Stock options	—	15	—	229
Restricted stock units	—	2	—	15