UNS ENERGY EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2013

Effects of Dilutive Common Stock on Weighted-Average Number of Shares

The following table illustrates the effect of dilutive securities on net income and weighted average Common Stock outstanding:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
	Thousands of Dollars
Numerator:
Net Income	$	67,990	$	50,664	$	113,953	$	83,414
Income from Assumed Conversion of Convertible Senior Notes ⁽¹⁾	—		—		—		1,100
Adjusted Net Income Available for Diluted Common Stock Outstanding	$	67,990	$	50,664	$	113,953	$	84,514

	Thousands of Shares
Denominator:
Weighted Average Shares of Common Stock Outstanding:
Common Shares Issued	41,472		41,290		41,427		39,835
Fully Vested Deferred Stock Units	178		156		169		148
Total Weighted Average Common Stock Outstanding – Basic	41,650		41,446		41,596		39,983
Effect of Dilutive Securities:
Convertible Senior Notes ⁽¹⁾	—		—		—		1,417
Options and Stock Issuable Under Share-Based Compensation Plans	378		417		345		319
Total Weighted Average Common Stock Outstanding – Diluted	42,028		41,863		41,941		41,719

⁽¹⁾ In 2012, the Convertible Senior Notes were converted to Common Stock or redeemed for cash.

Number of Stock Options to Purchase Shares of Common Stock Excluded from Computation of Diluted Earning Per Share

We excluded the following outstanding stock options, with an exercise price above market, and contingently issuable shares from our diluted EPS computation as their effect would be anti-dilutive:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2013	2012	2013	2012
	Thousands of Shares
Stock Options	—	—	—	67
Restricted Stock Units	—	—	8	—
Total Anti-Dilutive Shares Excluded from the Diluted EPS Computation	—	—	8	67