UNS ENERGY EARNINGS PER SHARE

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	Thousands of Dollars
Numerator: Net Income	$	42,354	$	34,618	$	57,829	$	45,963
	Thousands of Shares
Denominator:
Weighted Average Shares of Common Stock Outstanding:
Common Shares Issued	41,659		41,427		41,639		41,404
Fully Vested Deferred Stock Units	122		171		120		165
Total Weighted Average Common Stock Outstanding — Basic	41,781		41,598		41,759		41,569
Effect of Dilutive Securities:
Options and Stock Issuable Under Share-Based Compensation Plans	364		323		356		329
Total Weighted Average Common Stock Outstanding — Diluted	42,145		41,921		42,115		41,898

For the six months ended June 30, 2013, we excluded 12,000 contingently issuable shares from our diluted EPS computation as their effect would be anti-dilutive.