As at March 31, 2013, the Corporation had approximately $41 million (December 31, 2012 - $73 million) in non-capital and capital loss carryforwards, of which $13 million (December 31, 2012 - $13 million) has not been recognized in the consolidated financial statements. The non-capital loss carryforwards expire between 2013 and 2033.
11. EXTRAORDINARY GAIN, NET OF TAX
Effective March 2013 Fortis and the Government settled all matters, including release from all debt obligations, pertaining to the Government's December 2008 expropriation of non-regulated hydroelectric generating assets and water rights in central Newfoundland, then owned by Exploits Partnership in which Fortis holds an indirect 51% interest through Fortis Properties. The settlement of expropriation matters resulted in the recognition of an extraordinary gain of approximately $25 million ($22 million after tax) in the first quarter of 2013.
12. EARNINGS PER COMMON SHARE
The Corporation calculates earnings per common share ("EPS") on the weighted average number of common shares outstanding. Diluted EPS is calculated using the treasury stock method for options and the "if-converted" method for convertible securities.
EPS were as follows:
Quarter Ended March 31 2013 ------------------------------------------------ Earnings to Common Shareholders Before Earnings Extraordinary Extraordinary to Common Item Gain Shareholders ($ millions) ($ millions) ($ millions)----------------------------------------------------------------------------Basic EPS 129 22 151Effect of potential dilutivesecurities: Stock Options - - - Preference Shares 4 - 4----------------------------------------------------------------------------Diluted EPS 133 22 155-------------------------------------------------------------------------------------------------------------------------------------------------------- Quarter Ended March 31 2013 ------------------------------------------------ Weighted EPS Average Before EPS Shares Extraordinary Extraordinary (millions) Item Gain EPS----------------------------------------------------------------------------Basic EPS 192.0 $ 0.67 $ 0.12 $ 0.79Effect of potential dilutivesecurities: Stock Options 0.8 Preference Shares 10.0----------------------------------------------------------------------------Diluted EPS 202.8 $ 0.66 $ 0.10 $ 0.76-------------------------------------------------------------------------------------------------------------------------------------------------------- Quarter Ended March 31 2012 ------------------------------------------------ Earnings to Common Shareholders Before Earnings Extraordinary Extraordinary to Common Item Gain Shareholders ($ millions) ($ millions) ($ millions)----------------------------------------------------------------------------Basic EPS 121 - 121Effect of potential dilutivesecurities: Stock Options - - - Preference Shares 4 - 4----------------------------------------------------------------------------Diluted EPS 125 - 125-------------------------------------------------------------------------------------------------------------------------------------------------------- Quarter Ended March 31 2012 ------------------------------------------------ Weighted EPS Average Before EPS Shares Extraordinary Extraordinary (millions) Item Gain EPS----------------------------------------------------------------------------Basic EPS 189.0 $ 0.64 - $ 0.64Effect of potential dilutivesecurities: Stock Options 1.0 Preference Shares 10.3----------------------------------------------------------------------------Diluted EPS 200.3 $ 0.62 - $ 0.62--------------------------------------------------------------------------------------------------------------------------------------------------------
