Xcel Energy 2008 Annual Report Download - page 114

9. Preferred and Common Stock
Preferred Stock — Xcel Energy has authorized 7,000,000 shares of preferred stock with a $100 par value. At Dec. 31,
2008 and 2007, Xcel Energy had six series of preferred stock outstanding, redeemable at its option at prices ranging
from $102 to $103.75 per share plus accrued dividends. The holders of the $3.60 series preferred stock are entitled to
three votes per each share held. The holders of the other series of preferred stock are entitled to one vote per share. In
the event dividends payable on the preferred stock of any series outstanding is in arrears in an amount equal to four
quarterly dividends, the holders of preferred stocks, voting as a class, are entitled to elect the smallest number of
directors necessary to constitute a majority of the Board of Directors. The holders of common stock, voting as a class,
are entitled to elect the remaining directors.
The charters of some of Xcel Energy’s subsidiaries also authorize the issuance of preferred stock. However, at Dec. 31,
2008 and 2007, there are no preferred shares of subsidiaries outstanding. The following table lists preferred shares by
subsidiary:
Preferred Preferred
Shares Shares
Authorized Par Value Outstanding
SPS ......................................... 10,000,000 $1.00 None
PSCo ........................................ 10,000,000 0.01 None
Common Stock and Equivalents — On Sept. 15, 2008, Xcel Energy issued 15,000,000 shares of common stock to
underwriters at a price of $20.10 per share. The shares were re-offered to the public at a price of $20.20 per share plus
a commission of $0.05 per share from the purchasers. On Sept. 18, 2008, Xcel Energy issued 2,250,000 shares of
common stock pursuant to the underwriters’ exercise in full of their over-allotment. The proceeds from these offerings
were used to repay commercial paper.
Xcel Energy has common stock equivalents consisting of convertible senior notes, 401(k) equity awards and stock
options. Restricted stock units and performance shares are included as common stock equivalents when all necessary
conditions for issuance have been satisfied by the end of the period being reported.
In 2008, 2007 and 2006, Xcel Energy had approximately 8.1 million, 8.5 million and 11.0 million options
outstanding, respectively, that were antidilutive and, therefore, excluded from the earnings per share calculation. The
dilutive impact of common stock equivalents affected earnings per share as follows for the years ending Dec. 31:
2008 2007 2006
Per Per Per
Share Share Share
Income Shares Amount Income Shares Amount Income Shares Amount
(Shares and dollars in thousands, except per share amounts)
Income from continuing
operations .............. $645,720 $575,899 $568,681
Less: Dividend requirements on
preferred stock ........... (4,241) (4,241) (4,241)
Basic earnings per share
Earnings available to common
shareholders ............. 641,479 437,054 $1.47 571,658 416,139 $1.38 564,440 405,689 $1.39
Effect of dilutive securities:
Convertible senior notes ..... 4,498 4,144 10,411 16,425 15,112 23,317
401(k) equity awards ....... — 596 — 482 — 551
Stock options ............ — 19 — 85 — 48
Diluted earnings per share
Earnings available to common
shareholders and assumed
conversions ............. $645,977 441,813 $1.46 $582,069 433,131 $1.35 $579,552 429,605 $1.35
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