11. Earnings Per Share

In accordance with accounting standards for the calculation of EPS, TECO Energy follows the two-class method for computing EPS. These standards define share-based payment awards that participate in dividends prior to vesting as participating securities that should be included in the earnings allocation in computing EPS under the two-class method.

The two-class method of calculating EPS requires TECO Energy to calculate EPS for its common stock and its participating securities (time-vested restricted stock and performance-based restricted stock) based on dividends declared and the pro-rata share each has to undistributed earnings. The application of the two-class method did not have a material effect on TECO Energy’s EPS calculations.

(millions, except per share amounts)	2015			2014			2013 ⁽¹⁾
Basic earnings per share
Net income from continuing operations	$	241.2		$	206.4		$	188.7
Amount allocated to nonvested participating shareholders		(0.7	)		(0.7	)		(0.6	)
Income before discontinued operations available to common shareholders—Basic	$	240.5		$	205.7		$	188.1
Income (loss) from discontinued operations	$	(67.7	)	$	(76.0	)	$	9.0
Amount allocated to nonvested participating shareholders		0.0			0.0			0.0
Income (loss) from discontinued operations —Basic	$	(67.7	)	$	(76.0	)	$	9.0
Net income	$	173.5		$	130.4		$	197.7
Amount allocated to nonvested participating shareholders		(0.7	)		(0.7	)		(0.6	)
Net income available to common shareholders—Basic	$	172.8		$	129.7		$	197.1
Average common shares outstanding—Basic		233.1			223.1			215.0
Earnings per share from continuing operations available to common shareholders—Basic	$	1.03		$	0.92		$	0.88
Earnings per share from discontinued operations available to common shareholders—Basic		(0.29	)		(0.34	)		0.04
Earnings per share attributable to TECO Energy available to common shareholders—Basic	$	0.74		$	0.58		$	0.92
Diluted earnings per share
Net income from continuing operations	$	241.2		$	206.4		$	188.7
Amount allocated to nonvested participating shareholders		(0.7	)		(0.7	)		(0.6	)
Income before discontinued operations available to common shareholders—Diluted	$	240.5		$	205.7		$	188.1
Income (loss) from discontinued operations	$	(67.7	)	$	(76.0	)	$	9.0
Amount allocated to nonvested participating shareholders		0.0			0.0			0.0
Income (loss) from discontinued operations available to common shareholders—Diluted	$	(67.7	)	$	(76.0	)	$	9.0
Net income	$	173.5		$	130.4		$	197.7
Amount allocated to nonvested participating shareholders		(0.7	)		(0.7	)		(0.6	)
Net income available to common shareholders—Diluted	$	172.8		$	129.7		$	197.1
Unadjusted average common shares outstanding—Diluted		233.1			223.1			215.0
Assumed conversion of stock options, unvested restricted stock and contingent performance shares, net		1.4			0.6			0.5
Average common shares outstanding—Diluted		234.5			223.7			215.5
Earnings per share from continuing operations available to common shareholders—Diluted	$	1.03		$	0.92		$	0.88
Earnings per share from discontinued operations available to common shareholders—Diluted		(0.29	)		(0.34	)		0.04
Earnings per share available to common shareholders—Diluted	$	0.74		$	0.58		$	0.92
Anti-dilutive shares		0.0			0.0			0.0

(1)	All prior periods presented reflect the classification of TECO Coal as discontinued operations (see Note 19).