Eversource 2012 Annual Report Download - page 139

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The following table sets forth the components of basic and diluted EPS:
For the Years Ended December 31,
(Millions of Dollars, except share information)
2012
2011
2010
Net Income Attributable to Controlling Interest
$
525.9
$
394.7
$
387.9
Weighted Average Common Shares Outstanding:
Basic
277,209,819
177,410,167
176,636,086
Dilutive Effect
783,812
394,401
249,301
Diluted
277,993,631
177,804,568
176,885,387
Basic EPS
$
1.90
$
2.22
$
2.20
Diluted EPS
$
1.89
$
2.22
$
2.19
On April 10, 2012, NU issued approximately 136 million common shares as a result of the merger with NSTAR, which are reflected in
weighted average common shares outstanding as of December 31, 2012.
RSUs and performance shares are included in basic weighted average common shares outstanding as of the date that all necessary
vesting conditions have been satisfied. The dilutive effect of unvested RSUs and performance shares is calculated using the treasury
stock method. Assumed proceeds of these 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 period, using the average market price during the period,
and the grant date market value).
The dilutive effect of stock options to purchase common shares is also calculated using the treasury stock method. Assumed proceeds
for stock options consist of 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 period, using the average market price during the period, and the exercise price).
21. SEGMENT INFORMATION (NU)
Presentation: NU is organized between the Electric Distribution, Electric Transmission and Natural Gas Distribution segments and
Other based on a combination of factors, including the characteristics of each segments' products and services, the sources of
operating revenues and expenses and the regulatory environment in which each segment operates. These segments represented
substantially all of NU's total consolidated revenues for the years ended December 31, 2012, 2011 and 2010. Revenues from the sale
of electricity and natural gas primarily are derived from residential, commercial and industrial customers and are not dependent on any
single customer. The Electric Distribution segment includes the generation activities of PSNH and WMECO.
Other operations in the tables below primarily consists of 1) the equity in earnings of NU parent from its subsidiaries and intercompany
interest income, both of which are eliminated in consolidation, and interest income and expense related to the cash and debt of NU
parent and NSTAR LLC, respectively, 2) the revenues and expenses of NU's service companies, most of which are eliminated in
consolidation, 3) the operations of CYAPC and YAEC, and 4) the results of other subsidiaries, which are comprised of NU Enterprises,
NSTAR Communications, Inc., RRR (a real estate subsidiary), the non-energy-related subsidiaries of Yankee and the remaining
operations of HWP.
Cash flows used for 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.
As discussed in Note 1B, "Summary of Significant Accounting Policies – Basis of Presentation," certain reclassifications of prior year
data were made in the accompanying consolidated statements of income for NU. Accordingly, the corresponding items of segment
information have been recast for all prior years for comparative purposes.
Effective in the third quarter of 2012, NU’s reportable segments are the combined Electric Distribution, Electric Transmission and
Natural Gas Distribution segments, based upon the level at which NU’s chief operating decision maker assesses performance and
makes decisions about the allocation of company resources. Each of NU’s subsidiaries, including CL&P, NSTAR Electric, PSNH and
WMECO, has one reportable segment. Therefore, separate Transmission and Distribution information is not disclosed for CL&P,
NSTAR Electric, PSNH or WMECO. NU’s operating segments and reporting units are consistent with its reportable business segments.
NSTAR amounts are included in NU consolidated from the date of the merger, April 10, 2012, through December 31, 2012.