UNS ENERGY EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2014

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UNS ENERGY EARNINGS PER SHARE

UNS ENERGY EARNINGS PER SHARE

We compute basic Earnings Per Share (EPS) by dividing Net Income by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could result if outstanding stock options or share-based compensation awards were exercised or converted into Common Stock. We excluded anti-dilutive contingently issuable shares from the calculation of diluted EPS.

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

	Three Months Ended March 31,
	2014		2013
	Thousands of Dollars
Numerator: Net Income	$	15,475	$	11,345
	Thousands of Shares
Denominator:
Weighted Average Shares of Common Stock Outstanding:
Common Shares Issued	41,619		41,381
Fully Vested Deferred Stock Units	118		159
Total Weighted Average Common Stock Outstanding — Basic	41,737		41,540
Effect of Dilutive Securities:
Options and Stock Issuable Under Share-Based Compensation Plans	347		335
Total Weighted Average Common Stock Outstanding — Diluted	42,084		41,875

For the three months ended March 31, 2013, we excluded 24,000 contingently issuable shares from our diluted EPS computation as their effect would be anti-dilutive.