COMMON EQUITY (Tables)

9 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

We had the following changes to issued common stock during the nine months ended September 30, 2013:



Common stock issued at December 31, 2012		78,287,906
Shares issued
Stock-based compensation		1,144,495
Stock Investment Plan		219,847
Rabbi trust shares		105,467
Common stock issued at September 30, 2013		79,757,715

Schedule Of Common Stock Activity To Meet Requirements Of Stock Investment Plan And Certain Stock Based Employee Benefit And Compensation Plans

The following table provides a summary of common stock activity to meet the requirements of our Stock Investment Plan and certain stock-based employee benefit and compensation plans:



Period		Method of meeting requirements
Beginning 02/05/2013		Issuing new shares *
01/01/2012 – 02/04/2013		Purchased shares on the open market


*	These stock issuances increased equity $71.1 million in 2013.

Reconciliation of shares issued and outstanding

The following table reconciles common shares issued and outstanding:



	September 30, 2013			December 31, 2012
	Shares	Average Cost *		Shares	Average Cost *
Common stock issued	79,757,715			78,287,906
Less:
Deferred compensation rabbi trust	467,967	$	48.42	385,439	$	46.03
Total common shares outstanding	79,289,748			77,902,467


*	Based on our stock price on the day the shares entered the deferred compensation rabbi trust. Shares paid out of the trust are valued at the average cost of shares in the trust.

Computation of basic and diluted earnings per share

The following table reconciles our computation of basic and diluted earnings per share:



	Three Months Ended September 30						Nine Months Ended September 30
(Millions, except per share amounts)	2013			2012			2013			2012
Numerator:
Net income from continuing operations	$	39.4		$	74.3		$	217.7		$	224.8
Discontinued operations, net of tax	(0.6		)	(8.0		)	4.7			(9.2		)
Preferred stock dividends of subsidiary	(0.7		)	(0.7		)	(2.3		)	(2.3		)
Noncontrolling interest in subsidiaries	—			0.1			0.1			0.1
Net income attributed to common shareholders — basic	$	38.1		$	65.7		$	220.2		$	213.4
Effect of dilutive securities
Stock-based compensation	(0.1		)	—			(0.1		)	—
Net income attributed to common shareholders — diluted	$	38.0		$	65.7		$	220.1		$	213.4

Denominator:
Average shares of common stock — basic	79.8			78.5			79.3			78.5
Effect of dilutive securities
Stock-based compensation	0.4			0.6			0.4			0.6
Deferred compensation	—			0.2			0.2			0.2
Average shares of common stock — diluted	80.2			79.3			79.9			79.3

Earnings per common share
Basic	$	0.48		$	0.84		$	2.78		$	2.72
Diluted	0.47			0.83			2.76			2.69

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The calculation of diluted earnings per share excluded the following weighted-average outstanding securities that had an anti-dilutive effect:



	Three Months Ended September 30		Nine Months Ended September 30
(Millions)	2013	2012	2013	2012
Stock-based compensation	0.4	0.9	0.2	0.6
Deferred compensation	0.2	—	0.1	—

Capital transactions with subsidiaries

During the nine months ended September 30, 2013, capital transactions with subsidiaries were as follows (in millions):



Subsidiary	Dividends To Parent		Return Of Capital To Parent		Equity Contributions From Parent
ITF ⁽¹⁾	$	—	$	—	$	25.2
MERC	—		21.0		3.5
MGU	—		12.5		5.0
UPPCO	—		5.5		—
WPS	81.5		35.0		200.0
WPS Investments, LLC ⁽²⁾	52.7		—		10.2
Total	$	134.2	$	74.0	$	243.9


⁽¹⁾	ITF is a direct wholly owned subsidiary of PELLC. As a result, it makes distributions to PELLC, and receives equity contributions from PELLC. Subject to applicable law, PELLC does not have any dividend restrictions or limitations on distributions to us.

⁽²⁾

WPS Investments, LLC is a consolidated subsidiary that is jointly owned by us, WPS, and UPPCO. At September 30, 2013, we had an 86.13% ownership interest, while WPS and UPPCO had an 11.44% and 2.43% ownership interest, respectively. Distributions from WPS Investments, LLC are made to the owners based on their respective ownership percentages. During 2013, all equity contributions to WPS Investments, LLC were made solely by us.