Vectren 2008 Annual Report Download - page 107

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105
statements issued for fiscal years and interim periods beginning after November 15, 2008, with early adoption
encouraged. The Company will adopt SFAS 161 on January 1, 2009, and the impact is not expected to be material
to the Company’s financial position or results of operations.
SFAS 162
In May 2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted Accounting Principles”
(SFAS No. 162). SFAS No. 162 identifies the sources of accounting principles and the framework for selecting
principles used in the preparation of financial statements. SFAS No. 162 is effective 60 days following the SEC’s
approval of the Public Company Accounting Oversight Board amendments to AU Section 411, “The Meaning of
Present Fairly in Conformity with Generally Accepted Accounting Principles”. The implementation of this standard
will not have a material impact on its financial position and results of operations.
FSP EITF 03-6-1
In June 2008, the FASB issued FSP EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based
Payment Transactions Are Participating Securities” (FSP EITF 03-6-1). FSP EITF 03-6-1 clarified that all
outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends participate in
undistributed earnings with common shareholders. Awards of this nature are considered participating securities and
the two-class method of computing basic and diluted earnings per share must be applied. FSP EITF 03-6-1 is
effective for fiscal years beginning after December 15, 2008. The Company will adopt FSP EITF 03-6-1on January
1, 2009, and the impact is not expected to be material to the Company’s financial position or results of operations.
21. Quarterly Financial Data (Unaudited)
Information in any one quarterly period is not indicative of annual results due to the seasonal variations common to
the Company’s utility operations. Summarized quarterly financial data for 2008 and 2007 follows:
(In millions, except per share amounts) Q1 Q2 Q3 Q4
2008
Operating revenues 902.1$ 463.9$ 411.4$ 707.3$
Operating income 108.8 33.0 43.2 78.4
Net income 64.0 4.7 23.2 37.1
Earnings per share:
Basic 0.84$ 0.06$ 0.29$ 0.46$
Diluted 0.84 0.06 0.29 0.46
2007
Operating revenues 834.0$ 421.7$ 381.4$ 644.8$
Operating income 95.6 39.7 45.1 80.1
Net income 70.1 16.0 17.1 39.9
Earnings per share:
Basic 0.92$ 0.21$ 0.23$ 0.53$
Diluted 0.92 0.21 0.22 0.52