Common Stock and Earnings Per Share

12 Months Ended

Dec. 31, 2012

Common Stock and Earnings Per Share [Abstract]

Common Stock and Earnings Per Share [Text Block]

COMMON STOCK AND EARNINGS PER SHARE



Summary of Common Stock	Shares	Equity
	Thousands	Millions
Balance as of December 31, 2009	35,221		$613.4
Employee Stock Purchase Program	19	0.6
Invest Direct	346	11.7
Options and Stock Awards	51	4.4
Equity Issuance Program	180	6.0
Balance as of December 31, 2010	35,817		$636.1
Employee Stock Purchase Program	20	0.8
Invest Direct	437	17.2
Options and Stock Awards	109	6.7
Equity Issuance Program	400	16.0
Purchase of Non-Controlling Interest	222	8.8
Contributions to Pension	508	20.0
Balance as of December 31, 2011	37,513		$705.6
Employee Stock Purchase Program	20	0.8
Invest Direct	474	19.2
Options and Stock Awards	95	6.0
Equity Issuance Program	1,275	53.1
Balance as of December 31, 2012	39,377		$784.7

Equity Issuance Program. We entered into a distribution agreement with KCCI, Inc., in February 2008, as amended most recently on August 3, 2012, with respect to the issuance and sale of up to an aggregate of 9.6 million shares of our common stock, without par value, of which 4.5 million remain available for issuance. For the year ended December 31, 2012, 1.3 million shares of common stock were issued under this agreement resulting in net proceeds of $53.1 million. During 2011, 0.4 million shares of common stock were issued for net proceeds of $16.0 million. The shares issued in 2012 and 2011 were, and the remaining shares may be, offered for sale, from time to time, in accordance with the terms of the amended distribution agreement pursuant to Registration Statement No. 333-170289.

Earnings Per Share. The difference between basic and diluted earnings per share, if any, arises from outstanding stock options, non-vested restricted stock, and performance share awards granted under our Executive and Director Long-Term Incentive Compensation Plans. In 2012, in accordance with accounting standards for earnings per share, 0.2 million options to purchase shares of common stock were excluded from the computation of diluted earnings per share because the option exercise prices were greater than the average market prices; therefore, their effect would have been anti-dilutive (0.3 million shares were excluded in 2011 and 0.5 million in 2010).

Purchase of Non-Controlling Interest. In 2011, the remaining shares of the ALLETE Properties non-controlling interest were purchased at book value for $8.8 million by issuing 0.2 million unregistered shares of ALLETE common stock. This was accounted for as an equity transaction, and no gain or loss is recognized in net income or comprehensive income.

Contributions to Pension. In 2011, ALLETE contributed approximately 0.5 million shares of ALLETE common stock to its pension plan. These shares of ALLETE common stock were contributed in reliance upon an exemption available pursuant to Section 4(a)(2) of the Securities Act of 1933 and had an aggregate value of $20.0 million when contributed.

NOTE 12. COMMON STOCK AND EARNINGS PER SHARE (Continued)



Reconciliation of Basic and Diluted
Earnings Per Share			Dilutive
Year Ended December 31	Basic		Securities	Diluted
Millions Except Per Share Amounts
2012
Net Income Attributable to ALLETE		$97.1			$97.1
Average Common Shares	37.6		—	37.6
Earnings Per Share		$2.59			$2.58
2011
Net Income Attributable to ALLETE		$93.8			$93.8
Average Common Shares	35.3		0.1	35.4
Earnings Per Share		$2.66			$2.65
2010
Net Income Attributable to ALLETE		$75.3			$75.3
Average Common Shares	34.2		0.1	34.3
Earnings Per Share		$2.20			$2.19

- Definition

The entire disclosure for earnings per share.

+ References+ Details