Earnings Per Share

12 Months Ended

Dec. 31, 2020

(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 2019 and 2018, these securities also included the PPL common stock forward sale agreements, which were partially settled in 2018 with the remaining shares settled in 2019. The forward sale agreements were dilutive under the Treasury Stock Method to the extent the average stock price of PPL's common shares exceeded 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 December 31, used in the EPS calculation are:


	2020		2019		2018
Income (Numerator)
Net income	$	1,469	$	1,746	$	1,827
Less amounts allocated to participating securities	1		1		2
Net income available to PPL common shareowners - Basic and Diluted	$	1,468	$	1,745	$	1,825

Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	768,590		728,512		704,439
Add incremental non-participating securities:
Share-based payment awards (a)	794		1,101		445
Forward sale agreements	—		7,141		3,735
Weighted-average shares - Diluted EPS	769,384		736,754		708,619

Basic EPS
Net Income available to PPL common shareowners	$	1.91	$	2.39	$	2.59

Diluted EPS
Net Income available to PPL common shareowners	$	1.91	$	2.37	$	2.58

(a)The Treasury Stock Method was applied to non-participating share-based payment awards.

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


			2020
Stock-based compensation plans (a)			731
DRIP			943

(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 8 for additional information on common stock issued under the 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:


	2020	2019	2018
Stock-based compensation awards	452	8	183