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)	2013			2012			2011 ⁽¹⁾
Basic earnings per share
Net income from continuing operations	$	197.8		$	246.0		$	250.8
Amount allocated to nonvested participating shareholders		(0.6	)		(0.8	)		(1.3	)

Income before discontinued operations available to common shareholders - Basic	$	197.2		$	245.2		$	249.5

Income (loss) from discontinued operations attributable to TECO Energy, net	($	0.1	)	($	33.3	)	$	21.8
Amount allocated to nonvested participating shareholders		0.0			0.1			(0.1	)

Income (loss) from discontinued operations attributable to TECO Energy available to common shareholders - Basic	($	0.1	)	($	33.2	)	$	21.7

Net income attributable to TECO Energy	$	197.7		$	212.7		$	272.6
Amount allocated to nonvested participating shareholders		(0.6	)		(0.7	)		(1.4	)

Net income attributable to TECO Energy available to common shareholders - Basic	$	197.1		$	212.0		$	271.2

Average common shares outstanding - Basic		215.0			214.3			213.6

Earnings per share from continuing operations available to common shareholders - Basic	$	0.92		$	1.14		$	1.17

Earnings per share from discontinued operations attributable to TECO Energy available to common shareholders - Basic	$	0.00		($	0.15	)	$	0.10

Earnings per share attributable to TECO Energy available to common shareholders - Basic	$	0.92		$	0.99		$	1.27

Diluted earnings per share
Net income from continuing operations	$	197.8		$	246.0		$	250.8
Amount allocated to nonvested participating shareholders		(0.6	)		(0.8	)		(1.3	)

Income before discontinued operations available to common shareholders - Diluted	$	197.2		$	245.2		$	249.5

Income (loss) from discontinued operations attributable to TECO Energy, net	($	0.1	)	($	33.3	)	$	21.8
Amount allocated to nonvested participating shareholders		0.0			0.1			(0.1	)

Income (loss) from discontinued operations attributable to TECO Energy available to common shareholders - Diluted	($	0.1	)	($	33.2	)	$	21.7

Net income attributable to TECO Energy	$	197.7		$	212.7		$	272.6
Amount allocated to nonvested participating shareholders		(0.6	)		(0.7	)		(1.4	)

Net income attributable to TECO Energy available to common shareholders - Diluted	$	197.1		$	212.0		$	271.2

Unadjusted average common shares outstanding - Diluted		215.0			214.3			213.6
Assumed conversion of stock options, unvested restricted stock and contingent performance shares, net		0.5			0.7			1.5

Average common shares outstanding - Diluted		215.5			215.0			215.1

Earnings per share from continuing operations available to common shareholders - Diluted	$	0.92		$	1.14		$	1.17

Earnings per share from discontinued operations attributable to TECO Energy available to common shareholders - Diluted	$	0.00		($	0.15	)	$	0.10

Earnings per share attributable to TECO Energy available to common shareholders - Diluted	$	0.92		$	0.99		$	1.27

Anti-dilutive shares		0.0			0.4			1.7

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