Earnings Per Share

We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic and diluted earnings per share for the three and six months ended March 31, 2014 and 2013 are calculated as follows:



	Three Months Ended March 31				Six Months Ended March 31
	2014		2013		2014		2013
	(In thousands, except per share amounts)
Basic Earnings Per Share from continuing operations
Income from continuing operations	$	133,367	$	112,340	$	220,383	$	189,688
Less: Income from continuing operations allocated to participating securities	337		304		578		634
Income from continuing operations available to common shareholders	$	133,030	$	112,036	$	219,805	$	189,054
Basic weighted average shares outstanding	95,264		90,530		93,049		90,445
Income from continuing operations per share — Basic	$	1.40	$	1.24	$	2.36	$	2.09

Basic Earnings Per Share from discontinued operations
Income from discontinued operations	$	—	$	4,085	$	—	$	7,202
Less: Income from discontinued operations allocated to participating securities	—		11		—		24
Income from discontinued operations available to common shareholders	$	—	$	4,074	$	—	$	7,178
Basic weighted average shares outstanding	95,264		90,530		93,049		90,445
Income from discontinued operations per share — Basic	$	—	$	0.04	$	—	$	0.08
Net income per share — Basic	$	1.40	$	1.28	$	2.36	$	2.17



	Three Months Ended March 31				Six Months Ended March 31
	2014		2013		2014		2013
	(In thousands, except per share amounts)
Diluted Earnings Per Share from continuing operations
Income from continuing operations available to common shareholders	$	133,030	$	112,036	$	219,805	$	189,054
Effect of dilutive stock options and other shares	2		2		4		5
Income from continuing operations available to common shareholders	$	133,032	$	112,038	$	219,809	$	189,059
Basic weighted average shares outstanding	95,264		90,530		93,049		90,445
Additional dilutive stock options and other shares	927		962		927		961
Diluted weighted average shares outstanding	96,191		91,492		93,976		91,406
Income from continuing operations per share — Diluted	$	1.38	$	1.23	$	2.34	$	2.07

Diluted Earnings Per Share from discontinued operations
Income from discontinued operations available to common shareholders	$	—	$	4,074	$	—	$	7,178
Effect of dilutive stock options and other shares	—		—		—		—
Income from discontinued operations available to common shareholders	$	—	$	4,074	$	—	$	7,178
Basic weighted average shares outstanding	95,264		90,530		93,049		90,445
Additional dilutive stock options and other shares	927		962		927		961
Diluted weighted average shares outstanding	96,191		91,492		93,976		91,406
Income from discontinued operations per share — Diluted	$	—	$	0.04	$	—	$	0.08
Net income per share — Diluted	$	1.38	$	1.27	$	2.34	$	2.15

There were no out-of-the-money stock options excluded from the computation of diluted earnings per share for the three and six months ended March 31, 2014 and 2013 as their exercise price was less than the average market price of the common stock during those periods.

2014 Equity Offering

On February 18, 2014, we completed the public offering of 9,200,000 shares of our common stock including the underwriters’ exercise of their overallotment option of 1,200,000 shares under our existing shelf registration statement. The offering was priced at $44.00 and generated net proceeds of $390.2 million, which were used to repay short-term debt outstanding under our $950 million commercial paper program, to fund infrastructure spending primarily to enhance the safety and reliability of our system and for general corporate purposes.

2011 Share Repurchase Program

We did not repurchase any shares during the six months ended March 31, 2014 and 2013 under our 2011 share repurchase program.