1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

Great Plains Energy, a Missouri corporation incorporated in 2001, is a public utility holding company and does not own or operate any significant assets other than the stock of its subsidiaries. Great Plains Energy's wholly owned direct subsidiaries with operations or active subsidiaries are as follows:


•	KCP&L is an integrated, regulated electric utility that provides electricity to customers primarily in the states of Missouri and Kansas. KCP&L has one active wholly owned subsidiary, Kansas City Power & Light Receivables Company (KCP&L Receivables Company).

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KCP&L Greater Missouri Operations Company (GMO) is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri. GMO also provides regulated steam service to certain customers in the St. Joseph, Missouri area. GMO has two active wholly owned subsidiaries, GMO Receivables Company and MPS Merchant Services, Inc. (MPS Merchant). MPS Merchant has certain long-term natural gas contracts remaining from its former non-regulated trading operations.


•	GPE Transmission Holding Company, LLC (GPETHC) owns 13.5% of Transource Energy, LLC (Transource) with the remaining 86.5% owned by AEP Transmission Holding Company, LLC (AEPTHC), a subsidiary of American Electric Power Company, Inc. GPETHC accounts for its investment in Transource under the equity method. Transource is focused on the development of competitive electric transmission projects.

Each of Great Plains Energy's and KCP&L's consolidated financial statements includes the accounts of their subsidiaries. Intercompany transactions have been eliminated.

Great Plains Energy's sole reportable business segment is electric utility. See Note 18 for additional information.

Basic and Diluted Earnings per Common Share Calculation

To determine basic EPS, preferred stock dividend requirements are deducted from net income before dividing by the average number of common shares outstanding. The effect of dilutive securities, calculated using the treasury stock method, assumes the issuance of common shares applicable to performance shares and restricted stock.

The following table reconciles Great Plains Energy's basic and diluted EPS.



Three Months Ended March 31		2014		2013
Income	(millions, except per share amounts)
Net income		$	23.8	$	26.0
Less: preferred stock dividend requirements		0.4		0.4
Earnings available for common shareholders		$	23.4	$	25.6
Common Shares Outstanding
Average number of common shares outstanding		153.7		153.4
Add: effect of dilutive securities		0.3		0.3
Diluted average number of common shares outstanding		154.0		153.7
Basic and diluted EPS		$	0.15	$	0.17

Anti-dilutive shares excluded from the computation of diluted EPS are detailed in the following table.



Three Months Ended March 31	2014	2013
Performance shares	495,619	408,707
Restricted stock shares	71,573	78,509

Dividends Declared

In May 2014, Great Plains Energy's Board of Directors (Board) declared a quarterly dividend of $0.23 per share on Great Plains Energy's common stock. The common dividend is payable June 20, 2014, to shareholders of record as of May 30, 2014. The Board also declared regular dividends on Great Plains Energy's preferred stock, payable September 1, 2014, to shareholders of record as of August 11, 2014.

In May 2014, KCP&L’s Board of Directors declared a cash dividend payable to Great Plains Energy of $18 million payable on June 19, 2014.