Vectren 2012 Annual Report Download - page 101

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99
14. Earnings Per Share
The Company uses the two class method to calculate earnings per share (EPS). The two class method is an earnings
allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to
common shareholders. Under the two class method, earnings for a period are allocated between common shareholders and
participating security holders based on their respective rights to receive dividends as if all undistributed book earnings for the
period were distributed. Participating securities have declined over time as share based awards to employess that can be
settled in shares and that participate in dividends have vested and replaced with awards where dividends are subject to
forfeiture.
Basic EPS is computed by dividing net income attributable to only the common shareholders by the weighted-average number
of common shares outstanding for the period. Diluted EPS includes the impact of stock options and other equity based
instruments to the extent the effect is dilutive.
The following table illustrates the basic and dilutive EPS calculations for the three years ended December 31, 2012:
Year Ended December 31,
(In millions, except per share data) 2012 2011 2010
Numerator:
Numerator for basic EPS $ 159.0 $ 141.6 $ 133.6
Add back earnings attributable to participating securities — — 0.1
Reported net income (Numerator for Diluted EPS) $ 159.0 $ 141.6 $ 133.7
Denominator:
Weighted average common shares outstanding (Basic EPS) 82.0 81.8 81.2
Conversion of share based compensation arrangements 0.1 0.0 0.1
Adjusted weighted average shares outstanding and
assumed conversions outstanding (Diluted EPS) 82.1 81.8 81.3
Basic earnings per share $ 1.94 $ 1.73 $ 1.65
Diluted earnings per share $ 1.94 $ 1.73 $ 1.64
For the year ended December 31, 2012 and 2011 there were no antidilutive options outstanding. For the year ended
December 31, 2010, options to purchase 308,800 additional shares of the Company’s common stock were outstanding, but
were not included in the computation of diluted EPS because their effect would be antidilutive. The exercise price for these
options ranged from $24.90 to $27.15 for the year ended December 31, 2010.
15. Accumulated Other Comprehensive Income
A summary of the components of and changes in Accumulated other comprehensive income for the past three years follows:
2010 2011 2012
Beginning
of Year Changes
During End
of Year Changes
During End
of Year Changes
During End
of Year
(In millions) Balance Year Balance Year Balance Year Balance
Unconsolidated affiliates $ (7.1) $ 0.5 $ (6.6) $ (9.3) $ (15.9) $ 11.3 $ (4.6)
Pension & other benefit costs (4.4) (0.5) (4.9) (1.7) (6.6) 4.0 (2.6)
Cash flow hedges 0.1 3.9 4.0 (3.9) 0.1 (0.1) —
Deferred income taxes 4.6 (1.5) 3.1 6.0 9.1 (6.2) 2.9
Accumulated other
comprehensive income (loss) $ (6.8) $ 2.4 $ (4.4) $ (8.9) $ (13.3) $ 9.0 $ (4.3)
Accumulated other comprehensive income arising from unconsolidated affiliates is primarily the Company’s portion of ProLiance
Holdings, LLC’s accumulated comprehensive income related to use of cash flow hedges. (See Note 7 for more information on
ProLiance.)