Earnings Per Share and Equity (Exelon)

3 Months Ended

Mar. 31, 2017

Earnings per Share

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, including shares to be issued upon exercise of stock options, performance share awards and restricted stock outstanding under Exelon’s LTIPs considered to be common stock equivalents. 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 used in calculating diluted earnings per share:



	Three Months Ended March 31,
	2017		2016
Exelon
Net income attributable to common shareholders	$	995	$	173
Weighted average common shares outstanding — basic	928		923
Assumed exercise and/or distributions of stock-based awards	2		2
Weighted average common shares outstanding — diluted	930		925

The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 9 million and 13 million for the three months ended March 31, 2017 and 2016, respectively. There were no equity units related to the PHI Merger not included in the calculation of diluted common shares outstanding due to their antidilutive effect for the three months ended March 31, 2017. 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 for the three months ended March 31, 2016. Refer to Note 20 — Shareholders' Equity of the Exelon 2016 Form 10-K for further information regarding the equity 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 March 31, 2017. In 2008, Exelon management decided to defer indefinitely any share repurchases.