Earnings Per Share and Equity (Exelon)

9 Months Ended

Sep. 30, 2015

Earnings per Share (Exelon)

Diluted earnings per share is calculated by dividing Net income attributable to common shareholders by the weighted average number of shares of common stock outstanding adjusted to include the potentially dilutive effect of stock options, performance share awards and restricted stock outstanding under Exelon’s LTIPs. The following table sets forth the components of basic and diluted earnings per share and shows the effect of these stock options, performance share awards and restricted stock on the weighted average number of shares outstanding (in millions) used in calculating diluted earnings per share:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Net income attributable to common shareholders	$	629	$	993	$	1,959	$	1,604
Average common shares outstanding — basic	913		861		879		860
Potentially dilutive effect of stock options, performance share awards and restricted stock	2		2		4		3
Average common shares outstanding — diluted	915		863		883		863

The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 14 million for the three and nine months ended September 30, 2015 and 16 million for the three and nine months ended September 30, 2014. The number of equity units related to the PHI merger not included in the calculation of diluted common shares outstanding due to their antidilutive effect was 4 million and 2 million for the three and nine months ended September 30, 2015, respectively, and 2 million for the three months ended September 30, 2014 and 1 million for the nine months ended September 30, 2014. Additionally, there were no forward units related to the PHI merger not included in the calculation of diluted common shares outstanding due to their antidilutive effect for the three and nine months ended September 30, 2015, and approximately 2 million not included for the three months ended September 30, 2014 and 1 million not included for the nine months ended September 30, 2014. Refer to Note 17 — Common Stock for further information regarding the equity units and equity forward units.

Under share repurchase programs, 35 million shares of common stock are held as treasury stock with a cost of $2.3 billion as of September 30, 2015. In 2008, Exelon management decided to defer indefinitely any share repurchases.