Unisource Energy Earnings Per Share

6 Months Ended

Jun. 30, 2011

Unisource Energy Earnings Per Share [Abstract]

UNISOURCE ENERGY EARNINGS PER SHARE

NOTE 10. UNISOURCE ENERGY EARNINGS PER SHARE

We compute basic Earnings Per Share by dividing Net Income by the weighted average number of common shares outstanding during the period. Except when the effect would be anti-dilutive, the diluted EPS calculation includes the impact of shares that could be issued upon exercise of outstanding stock options; contingently issuable shares under equity-based awards and common shares that would result from the conversion of convertible notes. The numerator in calculating diluted earnings per share is Net Income adjusted for the interest on Convertible Senior Notes (net of tax) that would not be paid if the notes were converted to common shares.

The following table shows the effects of potentially dilutive common stock on the weighted average number of shares:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
	-Thousands of Dollars-
Numerator:
Net Income	$	28,574	$	25,886	$	41,990	$	46,032
Income from Assumed Conversion of Convertible Senior Notes		1,097		1,097		2,195		2,195
Adjusted Numerator	$	29,671	$	26,983	$	44,185	$	48,227
	-Thousands of Shares-
Denominator:
Weighted Average Shares of Common Stock Outstanding:
Common Shares Issued		36,757		36,106		36,676		36,006
Fully Vested Deferred Stock Units		127		121		122		114
Participating Securities		66		95		71		95
Total Weighted Average Shares of Common Stock Outstanding and Participating Securities — Basic		36,950		36,322		36,869		36,215
Effect of Dilutive Securities:
Convertible Senior Notes		4,267		4,166		4,254		4,153
Options and Stock Issuable under Share Based Compensation Plans		338		412		354		446
Total Shares — Diluted		41,555		40,900		41,477		40,814

The following table shows the number of stock options to purchase shares of Common Stock excluded from the computation of diluted EPS because the stock option’s exercise price was greater than the average market price of the Common Stock:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
	-Thousands of Shares-
Stock Options Excluded from the Diluted EPS Computation		158		229		163		232