CenterPoint Energy 2009 Annual Report Download - page 132

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110
(12) Earnings Per Share
The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings
per share calculations:
For the Year Ended December 31,
2007 2008 2009
(In millions, exce
p
t
p
er share and share amounts)
Basic earnings
p
er share calculation:
N
et income ..................................................................... $ 395 $ 446 $ 372
Weighted average shares outstanding ................................. 320,480,000 336,387,000 365,229,000
Basic earnings per share $ 1.23 $ 1.32 $ 1.02
Diluted earnin
g
s per share calculation:
N
et income ..................................................................... $ 395 $ 446 $ 372
Weighted average shares outstanding ................................. 320,480,000 336,387,000 365,229,000
Plus: Incremental shares from assumed conversions:
Stock options(1) ........................................................ 1,059,000 760,000 451,000
Restricted stoc
k
......................................................... 1,928,000 1,772,000 2,001,000
2.875% convertible senior notes ............................... 291,000
—
—
3.75% convertible senior notes ................................. 18,749,000 4,636,000
—
Weighted average shares assuming dilution................... 342,507,000 343,555,000 367,681,000
Diluted earnings per share $ 1.15 $ 1.30 $ 1.01
__________
(1) Options to purchase 3,225,969, 2,617,772 and 2,372,132 shares were outstanding for the years ended
December 31, 2007, 2008 and 2009, respectively, but were not included in the computation of diluted
earnings per share because the options’ exercise price was greater than the average market price of the
common shares for the respective years.
Substantially all of the 3.75% contingently convertible senior notes provided for settlement of the principal
portion in cash rather than stock. The portion of the conversion value of such notes that was required to be settled in
cash rather than stock is excluded from the computation of diluted earnings per share from continuing operations.
CenterPoint Energy included the conversion spread in the calculation of diluted earnings per share when the average
market price of CenterPoint Energy’s common stock in the respective reporting period exceeded the conversion
price. In April 2008, CenterPoint Energy called its 3.75% convertible senior notes for redemption on May 30, 2008.
Substantially all of CenterPoint Energy’s 3.75% convertible senior notes were submitted for conversion on or prior
to the May 30, 2008 redemption date.
(13) Unaudited Quarterly Information
Summarized quarterly financial data is as follows:
Year Ended December 31, 2008
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(In millions, exce
p
t
p
er share amounts)
Revenues ....................................................................................
.
$ 3,363 $ 2,670 $ 2,515 $ 2,774
Operatin
g
income.......................................................................
.
336 297 337 303
N
et income .................................................................................
.
122 101 136
87
Basic earnin
g
s per share(1) .......................................................
.
$ 0.37 $ 0.30 $ 0.40 $ 0.25
Diluted earnings per share(1) ....................................................
.
$ 0.36 $ 0.30 $ 0.39 $ 0.25