EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2013

Notes To Consolidated Financial Statements [Abstract]

Earnings Per Share [Text Block]

13.       EARNINGS PER SHARE

Basic EPS is computed based upon the weighted average number of common shares outstanding during each period. Diluted EPS is computed on the basis of the weighted average number of common shares outstanding plus the potential dilutive effect if certain share-based compensation awards are converted into common shares. There were no antidilutive share awards outstanding for the three months ended June 30, 2013. For thesix months ended June 30, 2013, there were 3,150share awards excluded from the computation as these awards were antidilutive. For the three and six months ended June 30, 2012, there were 17,065 and 8,533, respectively, antidilutive share awards excluded from the calculation.

The following table sets forth the components of basic and diluted EPS:

		For the Three Months Ended				For the Six Months Ended
(Millions of Dollars, except share information)		June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Net Income Attributable to Controlling Interest		$	171.0	$	44.3	$	399.1	$	143.6
Weighted Average Common Shares Outstanding:
	Basic		315,154,130		301,047,753		315,141,956		239,551,735
	Dilutive Effect		808,489		769,131		840,622		575,434
	Diluted		315,962,619		301,816,884		315,982,578		240,127,169
Basic EPS		$	0.54	$	0.15	$	1.27	$	0.60
Diluted EPS		$	0.54	$	0.15	$	1.26	$	0.60

On April 10, 2012, NU issued approximately 136 million common shares as a result of the merger with NSTAR, which are reflected in weighted average common shares outstanding for all periods presented.

RSUs and performance shares are included in basic weighted average common shares outstanding as of the date that all necessary vesting conditions have been satisfied. The dilutive effect of unvested RSUs and performance shares is calculated using the treasury stock method. Assumed proceeds of these units under the treasury stock method consist of the remaining compensation cost to be recognized and a theoretical tax benefit. The theoretical tax benefit is calculated as the tax impact of the intrinsic value of the units (the difference between the market value of the average units outstanding for the period, using the average market price during the period, and the grant date market value).

The dilutive effect of stock options to purchase common shares is also calculated using the treasury stock method. Assumed proceeds for stock options consist of cash proceeds that would be received upon exercise, and a theoretical tax benefit. The theoretical tax benefit is calculated as the tax impact of the intrinsic value of the stock options (the difference between the market value of the average stock options outstanding for the period, using the average market price during the period, and the exercise price).