Earnings Per Share

9 Months Ended

Jun. 30, 2015

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 nine months ended June 30, 2015 and 2014 are calculated as follows:



	Three Months Ended June 30				Nine Months Ended June 30
	2015		2014		2015		2014
	(In thousands, except per share amounts)
Basic Earnings Per Share
Net income	$	56,281	$	45,721	$	291,560	$	266,104
Less: Income allocated to participating securities	111		106		596		667
Income available to common shareholders	$	56,170	$	45,615	$	290,964	$	265,437
Basic weighted average shares outstanding	102,000		101,162		101,776		96,392
Net income per share - Basic	$	0.55	$	0.45	$	2.86	$	2.76
Diluted Earnings Per Share
Net income available to common shareholders	$	56,170	$	45,615	290,964		265,437
Effect of dilutive stock options and other shares	—		—		—		—
Net income available to common shareholders	$	56,170	$	45,615	290,964		265,437
Basic weighted average shares outstanding	102,000		101,162		101,776		96,392
Additional dilutive stock options and other shares	—		1		—		2
Diluted weighted average shares outstanding	102,000		101,163		101,776		96,394
Net income per share - Diluted	$	0.55	$	0.45	$	2.86	$	2.76

There were no out-of-the-money stock options excluded from the computation of diluted earnings per share for the three and nine months ended June 30, 2014 as their exercise price was less than the average market price of the common stock during those periods. As of June 30, 2015 there were no outstanding options.

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 commercial paper program, 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 nine months ended June 30, 2015 and 2014 under our 2011 share repurchase program, which is scheduled to end on September 30, 2016.