Eversource 2010 Annual Report Download - page 134

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19. COMMON SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS (NU)
A summary of the changes in Common Shareholders' Equity and Noncontrolling Interests of NU is as follows:
For the Years Ended December 31,
2010 2009 2008
(Millions of Dollars)
Common
Shareholders'
Equity
Noncontrolling
Interest
Total
Equity
Preferred Stock
Not Subject to
Mandatory
Redemption
Total
Equity
Preferred Stock
Not Subject to
Mandatory
Redemption
Total
Equity
Preferred Stock
Not Subject to
Mandatory
Redemption
Balance as of Beginning of Year $ 3,577.9 $ - $ 3,577.9 $ 116.2 $ 3,020.3 $ 116.2 $ 2,913.8 $ 116.2
Net Income 394.1 - 394.1 - 335.6 - 266.4 -
Dividends on Common Shares (181.7) - (181.7) - (162.8) - (129.0) -
Dividends on Preferred Stock (6.1) - (6.1) (6.1) (5.6) (5.6) (5.6) (5.6)
Issuance of Common Shares 7.4 - 7.4 - 389.7 - 5.5 -
Capital Stock Expenses, Net (0.3) - (0.3) - (12.5) - 0.1 -
Contributions to NPT - 1.4 1.4 - - - - -
Other Transactions, Net 19.9 - 19.9 - 18.7 - 15.7 -
Net Income Attributable to
Noncontrolling Interests (0.1) 0.1 - 6.1 - 5.6 - 5.6
Other Comprehensive
Income/(Loss) (Note 16) 0.1 - 0.1 - (5.5) - (46.6) -
Balance as of End of Year $ 3,811.2 $ 1.5 $ 3,812.7 $ 116.2 $ 3,577.9 $ 116.2 $ 3,020.3 $ 116.2
20. EARNINGS PER SHARE (NU)
EPS is computed based upon the monthly weighted average number of common shares outstanding, excluding unallocated ESOP
shares, during each year. Diluted EPS is computed on the basis of the monthly weighted average number of common shares
outstanding plus the potential dilutive effect if certain securities are converted into common stock. The computation of diluted EPS
excludes the effect of the potential exercise of share awards when the average market price of the common shares is lower than the
exercise price of the related awards during the period. These outstanding share awards are not included in the computation of diluted
EPS because the effect would have been antidilutive. In 2010 and 2009, there were 1,578 and 17,637 share awards excluded from the
computation, respectively, as these awards were antidilutive. In 2008, there were no antidilutive share awards outstanding.
The following table sets forth the components of basic and diluted EPS:
(Millions of Dollars, except share information) 2010 2009 2008
Net Income Attributable to Controlling Interests $ 387.9 $ 330.0 $ 260.8
Weighted Average Common Shares Outstanding:
Basic 176,636,086 172,567,928 155,531,846
Dilutive Effect 249,301 149,318 467,394
Diluted 176,885,387 172,717,246 155,999,240
Basic EPS $ 2.20 $ 1.91 $ 1.68
Diluted EPS $ 2.19 $ 1.91 $ 1.67
RSUs and performance shares are included in basic common shares outstanding as of the date that all necessary vesting conditions
have been satisfied. The dilutive effect of outstanding RSUs and performance shares for which common shares have not been issued
is calculated using the treasury stock method. Assumed proceeds of the 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 year, using the average
market price during the year, and the grant date market value).
The dilutive effect of stock options is also calculated using the treasury stock method. Assumed proceeds for stock options consist of
remaining compensation cost to be recognized, 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 year, using the average market price during the year, and the grant price).
Allocated ESOP shares are included in basic common shares outstanding in the above table.
21. SEGMENT INFORMATION
Presentation: NU is organized between the Regulated companies' segments, NU Enterprises and Other based on a combination of
factors, including the characteristics of each business' products and services, the sources of operating revenues and expenses and the
regulatory environment in which each segment operates. Cash flows for total 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 the capitalized portions of pension and PBOP expense or income.
The Regulated companies' segments include the electric distribution segment, the natural gas distribution segment and the electric
transmission segment. The electric distribution segment includes the generation activities of PSNH and WMECO. The Regulated
companies' segments represented substantially all of NU's total consolidated revenues for each of the years ended December 31,
2010, 2009 and 2008.