Allegheny Power 2013 Annual Report Download - page 91

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76
EARNINGS PER SHARE OF COMMON STOCK
Basic earnings per share of common stock are computed using the weighted average number of common shares outstanding
during the relevant period as the denominator. The denominator for diluted earnings per share of common stock reflects the weighted
average of common shares outstanding plus the potential additional common shares that could result if dilutive securities and other
agreements to issue common stock were exercised. The following table reconciles basic and diluted earnings per share of common
stock:
Reconciliation of Basic and Diluted Earnings per Share of Common Stock 2013 2012 2011
(In millions, except per share amounts)
Income from continuing operations $ 375 $ 755 $ 856
Less: Income attributable to noncontrolling interest — 1 (16)
Income from continuing operations available to common shareholders 375 754 872
Discontinued operations (Note 20) 17 16 13
Earnings available to FirstEnergy Corp. $ 392 $ 770 $ 885
Weighted average number of basic shares outstanding 418 418 399
Assumed exercise of dilutive stock options and awards(1) 112
Weighted average number of diluted shares outstanding 419 419 401
Earnings per share:
Basic earnings per share:
Continuing operations $ 0.90 $ 1.81 $ 2.19
Discontinued operations (Note 20) 0.04 0.04 0.03
Net earnings per basic share $ 0.94 $ 1.85 $ 2.22
Diluted earnings per share:
Continuing operations $ 0.90 $ 1.80 $ 2.18
Discontinued operations (Note 20) 0.04 0.04 0.03
Net earnings per diluted share $ 0.94 $ 1.84 $ 2.21
(1) For the year ended December 31, 2013, 2 million shares were excluded from the calculation of diluted shares outstanding, as their inclusion
would be antidilutive. The number of potentially dilutive securities not included in the calculation of diluted shares outstanding due to their
antidilutive effect were not significant for the years ending December 31, 2012 or 2011.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment reflects original cost (net of any impairments recognized), including payroll and related costs such
as taxes, employee benefits, administrative and general costs, and interest costs incurred to place the assets in service. The costs
of normal maintenance, repairs and minor replacements are expensed as incurred. FirstEnergy recognizes liabilities for planned
major maintenance projects as they are incurred. The cost of nuclear fuel is capitalized within Property, plant and equipment and
charged to fuel expense using the specific identification method. Net plant in service balances as of December 31, 2013 and 2012
were as follows:
December 31, 2013 December 31, 2012
Property, Plant and Equipment In Service Accum. Depr. Net Plant In Service Accum. Depr. Net Plant
(In millions)
Regulated Distribution $ 23,098 $ (6,514) $ 16,584 $ 21,473 $ (6,146) $ 15,327
Regulated Transmission 5,564 (1,511) 4,053 5,078 (1,451) 3,627
Competitive 15,206 (5,088) 10,118 16,338 (4,739) 11,599
Other/Corporate 360 (167) 193 321 (131) 190
Total $ 44,228 $ (13,280) $ 30,948 $ 43,210 $ (12,467) $ 30,743