Xcel Energy 2009 Annual Report Download - page 115

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In 2009, 2008 and 2007, Xcel Energy had approximately 7.6 million, 8.1 million and 8.5 million weighted-average
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:
2009 2008 2007
Per Per Per
Share Share Share
Income Shares Amount Income Shares Amount Income Shares Amount
(Amounts in thousands, except per share data)
Net income .............. $680,887 $645,554 $577,348
Less: Dividend requirements on
preferred stock ........... (4,241) (4,241) (4,241)
Basic earnings per share:
Earnings available to common
shareholders ............. 676,646 456,433 $1.48 641,313 437,054 $1.47 573,107 416,139 $1.38
Effect of dilutive securities:
Convertible senior notes ..... — — 4,498 4,144 10,411 16,425
401(k) equity awards ....... — 705 — 596 — 482
Stock options ............ — 1 — 19 — 85
Diluted earnings per share:
Earnings available to common
shareholders and assumed
conversions ............. $676,646 457,139 $1.48 $645,811 441,813 $1.46 $583,518 433,131 $1.35
Common Stock Dividends Per Share — Historically, Xcel Energy has paid quarterly dividends to its shareholders.
Dividends on common stock are paid as declared by the Board of Directors. Dividends declared per share for the
quarters of 2009, 2008 and 2007 were:
Dividends Per Share 2009 2008 2007
First quarter .................................... $0.2375 $0.2300 $0.2225
Second quarter .................................. 0.2450 0.2375 0.2300
Third quarter ................................... 0.2450 0.2375 0.2300
Fourth quarter ................................... 0.2450 0.2375 0.2300
$0.9725 $0.9425 $0.9125
Dividend and Other Capital-Related Restrictions — The Articles of Incorporation of Xcel Energy place restrictions on
the amount of common stock dividends it can pay when preferred stock is outstanding. Under the provisions, dividend
payments may be restricted if Xcel Energy’s capitalization ratio (on a holding company basis only, not on a consolidated
basis) is less than 25 percent. For these purposes, the capitalization ratio is equal to (i) common stock plus surplus
divided by (ii) the sum of common stock plus surplus plus long-term debt. Based on this definition, Xcel Energy’s
holding company capitalization ratio at Dec. 31, 2009 and 2008 was 85 percent and 84 percent, respectively.
Therefore, the restrictions do not place any effective limit on Xcel Energy’s ability to pay dividends.
In addition, NSP-Minnesota’s first mortgage indenture places certain restrictions on the amount of cash dividends it can
pay to Xcel Energy, the holder of its common stock. Even with these restrictions, NSP-Minnesota could have paid more
than $1.1 billion and $1.0 billion in additional cash dividends on common stock at Dec. 31, 2009 and 2008,
respectively.
The issuance of securities by Xcel Energy generally is not subject to regulatory approval. However, utility financings and
certain intra-system financings are subject to the jurisdiction of the applicable state regulatory commissions and/or the
FERC under the Federal Power Act.
• PSCo currently has authorization to issue up to $400 million of long-term debt and up to $800 million of
short-term debt.
• SPS currently has authorization to issue up to $400 million in short-term debt.
• NSP-Wisconsin currently has authorization to issue up to $50 million of long-term debt and $100 million of
short-term debt.
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