COMMON EQUITY (Tables)

3 Months Ended

Mar. 31, 2014

Stockholders' Equity Note [Abstract]

We had the following changes to issued common stock during the three months ended March 31, 2014:



Balance at December 31, 2013		79,919,176
Shares issued
Employee Stock Ownership Plan		31,764
Stock Investment Plan		12,151
Balance at March 31, 2014		79,963,091

Schedule of common stock activity to meet requirements of our stock investment plan and 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 02/05/14		Purchasing shares on the open market
02/05/2013 – 02/04/2014		Issued new shares
01/01/2013 – 02/04/2013		Purchased shares on the open market

Reconciliation of shares issued and outstanding

The following table reconciles common shares issued and outstanding:



	March 31, 2014			December 31, 2013
	Shares	Average Cost *		Shares	Average Cost *
Common stock issued	79,963,091			79,919,176
Less:
Deferred compensation rabbi trust	428,720	$	48.60	473,796	$	48.50
Total common shares outstanding	79,534,371			79,445,380


*	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 March 31
(Millions, except per share amounts)	2014			2013
Numerator:
Net income from continuing operations	$	153.2		$	182.2
Discontinued operations, net of tax	(0.1		)	6.1
Preferred stock dividends of subsidiary	(0.8		)	(0.8		)
Noncontrolling interest in subsidiaries	0.1			—
Net income attributed to common shareholders	$	152.4		$	187.5

Denominator:
Average shares of common stock — basic	80.2			78.7
Effect of dilutive securities
Stock-based compensation	0.3			0.4
Deferred compensation	—			0.2
Average shares of common stock — diluted	80.5			79.3

Earnings per common share
Basic	$	1.90		$	2.38
Diluted	1.89			2.37

Schedule of antidilutive securities

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

Capital transactions with subsidiaries

During the three months ended March 31, 2014, capital transactions with subsidiaries were as follows (in millions):



Subsidiary	Dividends To Parent		Return Of Capital To Parent		Equity Contributions From Parent
IBS	$	—	$	—	$	15.0
ITF ⁽¹⁾	—		—		17.4
MERC	—		18.0		—
MGU	—		7.0		—
UPPCO	—		3.5		—
WPS	28.0		—		—
WPS Investments, LLC ⁽²⁾	18.3		—		5.1
Total	$	46.3	$	28.5	$	37.5


⁽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 March 31, 2014, we had an 86.37% ownership interest, while WPS and UPPCO had an 11.24% and 2.39% ownership interest, respectively. Distributions from WPS Investments, LLC are made to the owners based on their respective ownership percentages. During 2014, all equity contributions to WPS Investments, LLC were made solely by us.

Three Months Ended March 31

(Millions)

Stock-based compensation

Deferred compensation