APS 2012 Annual Report Download - page 163

PINNACLE WEST CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
138
15. Earnings Per Share
The following table presents earnings attributable to common shareholders per weighted-
average common share outstanding for the years ended December 31, 2012, 2011 and 2010:
2012
2011
2010
Basic earnings per share:
Income from continuing operations
attributable to common shareholders
$ 3.54
$ 3.01
$ 3.05
Income (loss) from discontinued
operations
(0.06)
0.10
0.23
Earnings per share – basic
$ 3.48
$ 3.11
$ 3.28
Diluted earnings per share:
Income from continuing operations
attributable to common shareholders
$ 3.50
$ 2.99
$ 3.03
Income (loss) from discontinued
operations
(0.05) 0.10 0.24
Earnings per share – diluted
$ 3.45
$ 3.09
$ 3.27
Dilutive stock options and performance shares (which are contingently issuable) increased
average common shares outstanding by approximately 1,017,000 shares in 2012, 811,000 shares in
2011 and 565,000 shares in 2010. Total average common shares outstanding for the purposes of
calculating diluted earnings per share were 110,527,311 shares in 2012, 109,864,243 shares in 2011
and 107,137,785 shares in 2010.
For the years ended 2012 and 2011, there were no common stock options that were excluded
from the computation of diluted earnings per share as a result of the options’ exercise prices being
greater than the average market price of the common shares. Options to purchase shares of common
stock that were not included in the computation of diluted earnings per share were 192,542 during
2010.
16. Stock-Based Compensation
Pinnacle West grants long-term incentive awards under the 2012 long-term incentive plan
(“2012 Plan”) in the form of Stock Grants, Restricted Stock Units and Performance Shares and may
grant restricted stock, stock units, dividend equivalents, performance share units, performance cash,
incentive and non-qualified stock options, and stock appreciation rights. The 2012 Plan, effective
May 16, 2012, provides 4,595,500 common shares to be available for grant to eligible employees and
members of the Board of Directors. Awards made in 2012 were issued under the 2012 Plan, prior
awards from 2007 to 2011 were issued under the 2007 long-term incentive plan (“2007 Plan”).
Restricted Stock Unit Awards and Stock Grants
Stock grants issued to non-officer members of the Board of Directors (“Directors”) in 2012,
2011 and 2010, provided Directors the option to elect to receive a stock grant, or to defer receipt until
a later date and receive restricted stock units in lieu of the stock grant. Directors who elect to defer
may elect to receive payment in either stock, or 50% in cash and 50% in stock. The Director may
elect to receive payments either as of the last business day of the month following the month in