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COMMON EQUITY (Tables)
 9 Months Ended
Sep. 30, 2014
Stockholders' Equity Note [Abstract]  
Roll forward of issued common stock
We had the following changes to issued common stock during the nine months ended September 30, 2014:
Balance at December 31, 2013
 
79,919,176

Shares issued
 
 
Employee Stock Ownership Plan
 
31,764

Stock Investment Plan
 
12,151

Balance at September 30, 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:
 
 
September 30, 2014
 
December 31, 2013
 
 
Shares
 
Average Cost *
 
Shares
 
Average Cost *
Common stock issued
 
79,963,091

 
 

 
79,919,176

 
 

Less:
 
 

 
 

 
 

 
 

Deferred compensation rabbi trust
 
428,920

 
$
48.73

 
473,796

 
$
48.50

Total common shares outstanding
 
79,534,171

 
 

 
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 September 30
 
Nine Months Ended September 30
(Millions, except per share amounts)
 
2014
 
2013
 
2014
 
2013
Numerator:
 
 

 
 

 
 

 
 

Net income from continuing operations
 
$
82.9

 
$
39.4

 
$
244.2

 
$
217.7

Discontinued operations, net of tax
 
1.1

 
(0.6
)
 
0.9

 
4.7

Preferred stock dividends of subsidiary
 
(0.7
)
 
(0.7
)
 
(2.3
)
 
(2.3
)
Noncontrolling interest in subsidiaries
 
—

 
—

 
0.1

 
0.1

Net income attributed to common shareholders — basic
 
$
83.3

 
$
38.1

 
$
242.9

 
$
220.2

Effect of dilutive securities
 
 
 
 
 
 
 
 
Stock-based compensation
 
—

 
(0.1
)
 
—

 
(0.1
)
Deferred compensation
 
(0.8
)
 
—

 
—

 
—

Net income attributed to common shareholders — diluted
 
$
82.5

 
$
38.0

 
$
242.9

 
$
220.1

 
 
 
 
 
 
 
 
 
Denominator:
 
 

 
 

 
 

 
 

Average shares of common stock — basic
 
80.2

 
79.8

 
80.2

 
79.3

Effect of dilutive securities
 
 

 
 

 
 

 
 

Stock-based compensation
 
0.6

 
0.4

 
0.4

 
0.4

Deferred compensation
 
0.3

 
—

 
—

 
0.2

Average shares of common stock — diluted
 
81.1

 
80.2

 
80.6

 
79.9

 
 
 
 
 
 
 
 
 
Earnings per common share
 
 

 
 

 
 

 
 

Basic
 
$
1.04

 
$
0.48

 
$
3.03

 
$
2.78

Diluted
 
1.02

 
0.47

 
3.01

 
2.76
Schedule of antidilutive securities
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)
 
2014
 
2013
 
2014
 
2013
Stock-based compensation
 
—

 
0.4

 
0.2

 
0.2

Deferred compensation
 
—

 
0.2

 
0.3

 
0.1
Capital transactions with subsidiaries
During the nine months ended September 30, 2014, capital transactions with subsidiaries were as follows (in millions):
Subsidiary
 
Dividends To Parent
 
Return Of
 Capital To Parent
 
Equity Contributions
From Parent
IBS
 
$
—

 
$
—

 
$
25.0

ITF (1)
 
—

 
—

 
45.5

MERC
 
—

 
27.0

 
12.0

MGU
 
—

 
13.0

 
—

PGL (1)
 
—

 
—

 
65.0

UPPCO
 
—

 
12.5

 
94.4

WPS
 
83.9

 
—

 
40.0

WPS Investments, LLC (2)
 
55.2

 
—

 
13.6

Total
 
$
139.1

 
$
52.5

 
$
295.5


(1) 
ITF and PGL are direct wholly owned subsidiaries of PELLC. As a result, they make distributions to PELLC, and receive 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 and WPS. In August 2014, UPPCO's ownership interest in WPS Investments, LLC was transferred to us as a result of the sale of UPPCO. At September 30, 2014, the ownership interest held by us and WPS was 88.95% and 11.05%, 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.