Earnings Per Share

6 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic and diluted earnings per share for the three and six months ended March 31, 2015 and 2014 are calculated as follows:

	Three Months Ended   March 31				Six Months Ended   March 31
	2015		2014		2015		2014
	(In thousands, except per share amounts)
Basic Earnings Per Share
Net income	$	137,684	$	133,367	$	235,279	$	220,383
Less: Income allocated to participating securities	296		334		520		572
Income available to common shareholders	$	137,388	$	133,033	$	234,759	$	219,811
Basic weighted average shares outstanding	101,746		96,174		101,667		94,013
Net income per share - Basic	$	1.35	$	1.38	$	2.31	$	2.34
Diluted Earnings Per Share
Net income available to common shareholders	$	137,388	$	133,033	234,759		219,811
Effect of dilutive stock options and other shares	—		—		—		—
Net income available to common shareholders	$	137,388	$	133,033	234,759		219,811
Basic weighted average shares outstanding	101,746		96,174		101,667		94,013
Additional dilutive stock options and other shares	—		2		—		2
Diluted weighted average shares outstanding	101,746		96,176		101,667		94,015
Net income per share - Diluted	$	1.35	$	1.38	$	2.31	$	2.34

There were no out-of-the-money stock options excluded from the computation of diluted earnings per share for the three and six months ended March 31, 2014 as their exercise price was less than the average market price of the common stock during those periods. As of March 31, 2015 there were no outstanding options.

2014 Equity Offering

On February 18, 2014, we completed the public offering of 9,200,000 shares of our common stock, including the underwriters’ exercise of their overallotment option of 1,200,000 shares under our existing shelf registration statement. The offering was priced at $44.00 and generated net proceeds of $390.2 million, which were used to repay short-term debt outstanding under our commercial paper program, fund infrastructure spending primarily to enhance the safety and reliability of our system and for general corporate purposes.

2011 Share Repurchase Program

We did not repurchase any shares during the six months ended March 31, 2015 and 2014 under our 2011 share repurchase program, which is scheduled to end on September 30, 2016.