Common Stock and Earnings Per Share

12 Months Ended

Dec. 31, 2011

Common Stock and Earnings Per Share [Abstract]

Common Stock and Earnings Per Share [Text Block]

Common Stock and Earnings Per Share

Summary of Common Stock	Shares	Equity
	Thousands	Millions
Balance as of December 31, 2008	32,585		$534.1
Employee Stock Purchase Program	24	0.7
Invest Direct	456	13.6
Options and Stock Awards	8	1.1
Equity Issuance Program	1,685	51.9
Contributions to Pension	463	12.0
Balance as of December 31, 2009	35,221		$613.4
Employee Stock Purchase Program	19	0.6
Invest Direct	346	11.7
Options and Stock Awards	51	4.4
Equity Issuance Program	180	6.0
Balance as of December 31, 2010	35,817		$636.1
Employee Stock Purchase Program	20	0.8
Invest Direct	437	17.2
Options and Stock Awards	109	6.7
Equity Issuance Program	400	16.0
Purchase of Non-Controlling Interest	222	8.8
Contributions to Pension	508	20.0
Balance as of December 31, 2011	37,513		$705.6

Equity Issuance Program. We entered into a distribution agreement with KCCI, Inc., in February 2008, as amended, with respect to the issuance and sale of up to an aggregate of 6.6 million shares of our common stock, without par value. For the year ended December 31, 2011, 0.4 million shares of common stock were issued under this agreement resulting in net proceeds of $16.0 million. During 2010, 0.2 million shares of common stock were issued for net proceeds of $6.0 million. As of December 31, 2011, approximately 2.7 million shares of common stock remain available for issuance pursuant to the amended distribution agreement. The shares issued in 2011 and 2010 were offered for sale, from time to time, in accordance with the terms of the amended distribution agreement pursuant to Registration Statement Nos. 333-170289 and 333-147965. The remaining shares may be offered for sale, from time to time, in accordance with the terms of the amended distribution agreement pursuant to Registration Statement No. 333-170289.

Earnings Per Share. The difference between basic and diluted earnings per share, if any, arises from outstanding stock options, non-vested restricted stock, and performance share awards granted under our Executive Long-Term Incentive Compensation Plan and Director Long-Term Incentive Compensation Plan. In 2011, in accordance with accounting standards for earnings per share, 0.3 million options to purchase shares of common stock were excluded from the computation of diluted earnings per share because the option exercise prices were greater than the average market prices, and therefore, their effect would be anti-dilutive (0.5 million shares were excluded for 2010 and 0.6 million in 2009).

Purchase of Non-Controlling Interest. In the third quarter of 2011, the remaining shares of the ALLETE Properties non-controlling interest were purchased at book value for $8.8 million by issuing 0.2 million unregistered shares of ALLETE common stock. This was accounted for as an equity transaction, and no gain or loss is recognized in net income or comprehensive income.

Contributions to Pension. On December 15, 2011, ALLETE contributed approximately 507,600 shares of ALLETE common stock to its pension plan. These shares of ALLETE common stock were contributed in reliance upon an exemption available pursuant to Section 4(2) of the Securities Act of 1933 and had an aggregate value of $20.0 million when contributed. (See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources.)

Note 12. Common Stock and Earnings Per Share (Continued)

Reconciliation of Basic and Diluted
Earnings Per Share			Dilutive
Year Ended December 31	Basic		Securities	Diluted
Millions Except Per Share Amounts
2011
Net Income Attributable to ALLETE		$93.8			$93.8
Common Shares	35.3		0.1	35.4
Per Share of Common Stock		$2.66			$2.65
2010
Net Income Attributable to ALLETE		$75.3			$75.3
Common Shares	34.2		0.1	34.3
Per Share of Common Stock		$2.20			$2.19
2009
Net Income Attributable to ALLETE		$61.0			$61.0
Common Shares	32.2		—	32.2
Per Share of Common Stock		$1.89			$1.89