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116
For the years ended December 31, 2013, 2012 and 2011, there was no change in ownership of the common equity of CL&P and
NSTAR Electric.
20. EARNINGS PER SHARE
Basic EPS is computed based upon the weighted average number of common shares outstanding during each period. Diluted EPS is
computed on the basis of the weighted average number of common shares outstanding plus the potential dilutive effect if certain share-
based compensation awards are converted into common shares. For the years ended December 31, 2013, 2012 and 2011, there were
1,575, 4,266, and 4,314, respectively, antidilutive share awards excluded from the computation.
The following table sets forth the components of basic and diluted EPS:
For the Years Ended December 31,
(Millions of Dollars, except share information)
2013
2012
2011
Net Income Attributable to Controlling Interest
$
786.0
$
525.9
$
394.7
Weighted Average Common Shares Outstanding:
Basic
315,311,387
277,209,819
177,410,167
Dilutive Effect
899,773
783,812
394,401
Diluted
316,211,160
277,993,631
177,804,568
Basic EPS
$
2.49
$
1.90
$
2.22
Diluted EPS
$
2.49
$
1.89
$
2.22
On April 10, 2012, NU issued approximately 136 million common shares as a result of the merger with NSTAR, which are reflected in
weighted average common shares outstanding as of December 31, 2013 and 2012.
RSUs and performance shares are included in basic weighted average common shares outstanding as of the date that all necessary
vesting conditions have been satisfied. The dilutive effect of unvested RSUs and performance shares is calculated using the treasury
stock method. Assumed proceeds of these units under the treasury stock method consist of the remaining compensation cost to be
recognized and a theoretical tax benefit. The theoretical tax benefit is calculated as the tax impact of the intrinsic value of the units (the
difference between the market value of the average units outstanding for the period, using the average market price during the period,
and the grant date market value).
The dilutive effect of stock options to purchase common shares is also calculated using the treasury stock method. Assumed proceeds
for stock options consist of cash proceeds that would be received upon exercise, and a theoretical tax benefit. The theoretical tax
benefit is calculated as the tax impact of the intrinsic value of the stock options (the difference between the market value of the average
stock options outstanding for the period, using the average market price during the period, and the exercise price).
21. SEGMENT INFORMATION
Presentation: NU is organized between the Electric Distribution, Electric Transmission and Natural Gas Distribution reportable
segments and Other based on a combination of factors, including the characteristics of each segments' products and services, the
sources of operating revenues and expenses and the regulatory environment in which each segment operates. These reportable
segments represented substantially all of NU's total consolidated revenues for the years ended December 31, 2013, 2012 and 2011.
Revenues from the sale of electricity and natural gas primarily are derived from residential, commercial and industrial customers and
are not dependent on any single customer. The Electric Distribution reportable segment includes the generation activities of PSNH and
WMECO.
The remainder of NU’s operations is presented as Other in the tables below and primarily consists of 1) the equity in earnings of NU
parent from its subsidiaries and intercompany interest income, both of which are eliminated in consolidation, and interest expense
related to the debt of NU parent, 2) the revenues and expenses of NU's service company, most of which are eliminated in
consolidation, 3) the operations of CYAPC and YAEC, and 4) the results of other non-regulated subsidiaries, which are not part of its
core business.
Cash flows used for investments in plant included in the segment information below are cash capital expenditures that do not include
amounts incurred but not paid, cost of removal, AFUDC related to equity funds, and, for certain subsidiaries, the capitalized portions of
pension expense.
NU’s reportable segments are determined based upon the level at which NU’s chief operating decision maker assesses performance
and makes decisions about the allocation of company resources. Each of NU’s subsidiaries, including CL&P, NSTAR Electric, PSNH
and WMECO, has one reportable segment. NU’s operating segments and reporting units are consistent with its reportable business
segments.
NSTAR amounts were included in NU beginning April 10, 2012.