Eversource 2015 Annual Report Download - page 112

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100
19. EARNINGS PER SHARE
Basic EPS is computed based upon the weighted average number of common shares outstanding during each period. Diluted EPS is computed on the
basis of the weighted average number of common shares outstanding during each period plus the potential dilutive effect of certain share-based
compensation awards as if they were converted into common shares. For the years ended December 31, 2015, 2014 and 2013, there were 1,474,
3,643 and 1,575 antidilutive share awards excluded from the computation of diluted EPS, respectively.
The following table sets forth the components of basic and diluted EPS:
Eversource
For the Years Ended December 31,
(Millions of Dollars, except share information)
2015
2014 2013
Net Income
Attributable to Common Shareholders
$
878.5 $
819.5
$
786.0
Weighted Average Common Shares Outstanding:
Basic 317,336,881 316,136,748
315,311,387
Dilutive Effect 1,095,806 1,280,666
899,773
Diluted 318,432,687 317,417,414
316,211,160
Basic EPS $
2.77 $
2.59
$
2.49
Diluted EPS $
2.76 $
2.58
$
2.49
RSU and performance share awards 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 RSU and performance share awards is calculated using the treasury stock method.
Assumed proceeds of these awards 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 awards (the difference between the market value of the
average awards 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).
20. SEGMENT INFORMATION
Presentation: Eversource is organized between the Electric Distribution, Electric Transmission and Natural Gas Distribution reportable 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 reportable segments represent substantially all of Eversource’s
total consolidated revenues. 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 reportable segment includes the generation activities of PSNH
and WMECO.
The remainder of Eversource’s operations is presented as Other in the tables below and primarily consists of 1) the equity in earnings of Eversource
parent from its subsidiaries and intercompany interest income, both of which are eliminated in consolidation, and interest expense related to the debt
of Eversource parent, 2) the revenues and expenses of Eversource Service, most of which are eliminated in consolidation, 3) the operations of
CYAPC and YAEC, 4) the results of Eversource Gas Transmission LLC and 5) the results of other unregulated subsidiaries, which are not part of its
core business.
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 expense.
Eversource’s reportable segments are determined based upon the level at which Eversource’s chief operating decision maker assesses performance
and makes decisions about the allocation of company resources. Each of Eversource’s subsidiaries, including CL&P, NSTAR Electric, PSNH and
WMECO, has one reportable segment. Eversource’s operating segments and reporting units are consistent with its reportable business segments.