Uns Energy (UNS) 8-K Unisource Energy Reports Second Quarter 2009 Earnings, Narrows 2009 Earnings Guidance Range

Exhibit 99.2

UniSource Energy Corporation
Supplemental Earnings & Outlook Information
August 3, 2009

SAFE HARBOR AND NON-GAAP MEASURES

This document contains forward-looking information that involves risks and uncertainties, that include, but are not limited to: state and federal regulatory and legislative decisions and actions; regional economic and market conditions which could affect customer growth and energy usage; weather variations affecting energy usage; the cost of debt and equity capital and access to capital markets; the performance of the stock market and changing interest rate environment, which affect the value of the company’s pension and other postretirement benefit plan assets and the related contribution requirements and expense; unexpected increases in O&M expense; resolution of pending litigation matters; changes in accounting standards; changes in critical accounting estimates; the ongoing restructuring of the electric industry; changes to long-term contracts; the cost of fuel and power supplies; performance of TEP’s generating plants; and other factors listed in UniSource Energy’s Form 10-K and 10-Q filings with the Securities and Exchange Commission. The preceding factors may cause future results to differ materially from historical results or from outcomes currently expected by UniSource Energy.

The Company’s press releases and other communications may include certain non-Generally Accepted Accounting Principles (GAAP) financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s financial statements.

Non-GAAP financial measures utilized by the Company include presentations of revenues, operating expenses, operating income and earnings (loss) per share. The Company uses these non-GAAP measures to evaluate the operations of the Company. Certain non-GAAP financial measures utilized by the Company exclude: the impact of non-recurring items: the effect of accounting changes or adjustments; expenses that are reimbursed by third parties; and other items. The Company’s management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of fundamental changes in the earnings or cash flow capacity of the Company’s operations. Management also believes that the presentation of the non-GAAP financial measures is largely consistent with its past practice, as well as industry practice in general, and will enable investors and analysts to compare current non-GAAP measures with non-GAAP measures with respect to prior periods.

YEAR OVER YEAR VARIANCE EXPLANATION

	2nd Quarter						Year-to-Date June 30
$ in millions	Pre-Tax			After Tax			Pre-Tax			After Tax
2008 UniSource Energy Net Income				$	4.7					$	2.1
TEP 2009 vs. 2008
Change in Revenues
Higher retail revenues (excluding REST and DSM revenues) due to higher base rates and the PPFAC.		11.8			7.1			6.7			4.0
Lower long-term wholesale electric and transmission revenues due to lower sales volumes.		(3.8	)		(2.3	)		(4.6	)		(2.8	)
Change in PPFAC-Related Expenses
Lower fuel and purchased power expense (net of short-term wholesale revenues) resulting from lower retail sales volumes and a decline in commodity prices.		8.4			5.0			23.5			14.1
Change in TEP Utility Gross Margin	$	16.4		$	9.8		$	25.6		$	15.4
Change in Other Operating Expenses
Higher Base O&M due primarily to an increase in plant outage and maintenance costs, as well as an increase in pension expense.		(7.8	)		(4.7	)		(19.6	)		(11.8	)
Higher depreciation and amortization due to: additions to plant in service; new depreciation rates for generation assets and amortization of regulatory assets resulting from the 2008 TEP Rate Order; and an adjustment related to an investment in lease equity made in 2006.		(11.1	)		(6.7	)		(14.8	)		(8.9	)
Other Income		6.9			4.1			5.1			3.1
Lower interest expense due to: lower rates on variable rate debt; lower balances of capital lease obligations; and an adjustment related to an investment in lease equity made in 2006.		4.4			2.6			7.4			4.4
Other Changes		4.1			2.5			5.9			3.5
Change in TEP’s Other Operating Expenses	$	(3.5	)	$	(2.1	)	$	(16.0	)	$	(9.6	)
Change in Regulatory Refunds and Amortization of TRA
Deferral of Revenues after TRA amortized in May 2008		14.9			8.9			14.9			8.9
TRA amortization expense in 2008		6.7			4.0			23.9			14.3
Total TEP Change 2009 vs. 2008	$	34.5		$	20.7		$	48.4		$	29.0
Other Changes 2009 vs. 2008
UNS Gas Change in Net Income					(0.3	)					(1.7	)
Mild weather resulted in lower retail therm sales.
UNS Electric Change in Net Income					0.8						1.1
Rate increase in June 2008 and a new mining customer
Other					5.4						5.7
After-tax gain at Millennium from the sale of Sabinas ($3.6 million). Also includes results of UED and consolidating adjustments.
Total Change in UNS Net Income					26.6						34.1
2009 UniSource Energy Net Income				$	31.3					$	36.2

TEP UTILITY GROSS MARGIN RECONCILIATION

	YTD Jun 30			YTD Jun 30			Q2			Q2
(millions)	2009			2008			2009			2008
Retail Electric Revenues* (Excluding DSM & REST)	$	372.7		$	366.0		$	217.2		$	205.4
Long-Term Wholesale Electric Sales		24.3			28.7			10.1			13.2
Wholesale Transmission Revenues		8.3			8.5			4.4			5.1
Total	$	405.3		$	403.2		$	231.7		$	223.7
Less Fuel, Purchased Power and Transmission Expense
Fuel		116.5			143.2			65.0			74.0
Reimbursed Fuel		(2.2	)		(2.9	)		(1.2	)		(1.9	)
Purchased Power		59.4			110.8			36.4			78.5
Increase (Decrease) to Reflect PPFAC Recovery		(4.0	)		0.0			(3.6	)		0.0
Transmission		1.8			4.5			1.3			2.4
Short-Term Wholesale Electric Sales		(37.1	)		(97.7	)		(17.5	)		(64.2	)
Net Fuel, Purchased Power and Transmission Expense		134.4			157.9			80.4			88.8
Utility Gross Margin (non-GAAP)	$	270.9		$	245.3		$	151.3		$	134.9
Reconciling Line Items to Operating Income
CTC Revenue Subject to Refund		0.0			(14.9	)		0.0			(14.9	)
Other Revenue		37.3			35.3			19.6			21.0
REST & DSM Revenues		5.1			1.4			2.8			0.1
FAS 71 Reinstatement Included in Fuel Expense		N/A			N/A			N/A			N/A
Other Operating Expenses (Income):
Reimbursed Fuel		2.2			2.9			1.2			1.9
Other Operations & Maintenance		143.8			120.1			69.1			61.5
Depreciation & Amortization		76.8			62.0			41.8			30.7
Amortization of Transition Recovery Asset		0.0			23.9			0.0			6.7
Taxes Other Than Income Taxes		20.3			21.0			10.0			10.5
Operating Income (GAAP)	$	70.2		$	37.2		$	51.6		$	29.8

TEP UTILITY GROSS MARGIN RECONCILIATION (CONT’D)

	Q1			Q1			Q4			Q3
(millions)	2009			2008			2008			2008
Retail Electric Revenues* (Excluding DSM & REST)	$	155.4		$	160.6		$	172.4		$	258.7
Long-Term Wholesale Electric Sales		14.1			15.4			14.9			14.5
Wholesale Transmission Revenues		3.9			2.7			4.9			4.3
Total	$	173.4		$	178.7		$	192.2		$	277.5
Less Fuel, Purchased Power and Transmission Expense
Fuel		51.4			69.2			37.3			107.2
Reimbursed Fuel		(1.0	)		(1.0	)		(0.8	)		(1.3	)
FAS 71 Reinstatement Included in Fuel Expense		N/A			N/A			24.0			N/A
Purchased Power		23.0			32.2			26.8			100.4
Increase (Decrease) to Reflect PPFAC Recovery		(0.4	)		0.0			0.0			0.0
Transmission		0.5			2.0			1.1			5.0
Short-Term Wholesale Electric Sales		(19.6	)		(34.2	)		(32.2	)		(54.1	)
Net Fuel, Purchased Power and Transmission Expense		53.9			68.2			56.2			157.2
Utility Gross Margin (non-GAAP)	$	119.5		$	110.5		$	136.0		$	120.3
Reconciling Line Items to Operating Income
CTC Revenue Subject to Refund		0.0			0.0			(13.7	)		(29.5	)
Other Revenue		17.8			14.4			19.6			20.0
REST & DSM Revenues		2.4			1.3			2.8			1.2
FAS 71 Reinstatement Included in Fuel Expense		N/A			N/A			24.0			N/A
Other Operating Expenses (Income):
Reimbursed Fuel		1.0			1.0			0.8			1.3
FAS 71 Reinstatement Included in Fuel Expense
Other Operations & Maintenance**		74.7			58.6			72.5			63.9
Depreciation & Amortization		35.1			31.3			32.8			31.2
Amortization of Transition Recovery Asset		0.0			17.3			0.0			0.0
Taxes Other Than Income Taxes		10.3			10.5			2.5			8.1
Operating Income (GAAP)	$	18.6		$	7.5		$	60.1		$	7.5

** O&M Expense in Q3 and Q4 2008 excludes transmission expense since it is recorded as part of fuel and purchased power expense in the calculation of gross margin.

TEP — RETAIL AND LONG-TERM WHOLESALE REVENUES

	YTD Jun 30		Q2		Q1
	2009		2009		2009
RETAIL NON-FUEL REVENUES* (MILLIONS)
Residential	$	107.2	$	61.9	$	45.3
Commercial		73.0		42.6		30.3
Industrial		47.4		25.7		21.8
Mining		16.0		7.8		8.2
Other		6.0		3.7		2.3
Total	$	249.5	$	141.6	$	107.9
Base Fuel and PPFAC Revenues		123.1		75.7		47.4
REST & DSM Revenues		5.1		2.8		2.4
Total Electric Retail Revenues	$	377.7	$	220.0	$	157.8

* Retail non-fuel revenues exclude fuel, PPFAC, REST/DSM charges

	YTD Jun 30		Q2		Q1
	2009		2009		2009
RETAIL REVENUES (CENTS / KWH)
Avg. Non-Fuel Rates
Residential		6.39		6.52		6.23
Commercial		7.88		8.17		7.51
Industrial		4.57		4.67		4.45
Mining		3.05		2.93		3.17
Other		4.91		5.11		4.64
Total Average Non-Fuel Rate		5.82		6.01		5.60
Avg. Base Fuel and PPFAC Rate		2.87		3.15		2.46
Avg. REST & DSM Rate		0.12		0.12		0.12
Avg. Total Retail Rate		8.81		9.16		8.18

	YTD Jun 30		Q2		Q1
	2009		2009		2009
LONG-TERM WHOLESALE GROSS MARGIN* (MILLIONS)
Long-term Wholesae Revenues	$	24.3	$	10.1	$	14.1
Fuel and Purchased Power Expense		13.5		5.8		7.7
Net	$	10.8	$	4.3	$	6.4

UNISOURCE ENERGY AND TEP BASE O&M RECONCILIATION

UniSource Energy	YTD Jun 30			YTD Jun 30			Q2			Q2			Q1			Q1
O&M Components	2009			2008			2009			2008			2009			2008
	-millions-						-millions-						-millions-
TEP Base O&M (Non-GAAP)	$	120.9		$	101.3		$	57.7		$	49.9		$	63.1		$	51.2
UNS Gas O&M		12.4			12.7			6.0			6.3			6.3			6.4
UNS Electric O&M		11.1			10.5			5.7			5.9			5.4			4.6
Consolidating Adjustments & Other		(5.4	)		(5.5	)		(3.0	)		(3.2	)		(1.4	)		(2.1	)
UniSource Energy Base O&M (Non-GAAP)	$	139.0		$	119.0		$	66.4		$	58.9		$	73.4		$	60.1
Reimbursed O&M Related to Springerville Units 3 and 4		17.8			16.5			8.6			10.4			9.2			6.1
Expenses Related to Customer-funded Renewable Energy and DSM Programs		7.1			2.7			3.9			1.4			2.4			1.3
UniSource Energy O&M (GAAP)	$	163.9		$	138.2		$	78.9		$	70.7		$	85.0		$	67.5

TEP	YTD Jun 30		YTD Jun 30		Q2		Q2		Q1		Q1
O&M Components	2009		2008		2009		2008		2009		2008
	-millions-				-millions-				-millions-
Wages, A&G, Other	$	71.9	$	70.0	$	36.6	$	34.7	$	35.2	$	35.1
Generating Plant Maintenance Expense		38.1		26.1		15.6		12.6		22.5		13.5
Pension and Postretirement Benefits Expense		10.9		5.2		5.5		2.6		5.4		2.6
TEP Base O&M (Non-GAAP)	$	120.9	$	101.3	$	57.7	$	49.9	$	63.1	$	51.2
Reimbursed O&M Related to Springerville Units 3 and 4		17.8		16.5		8.6		10.4		9.2		6.1
Expenses Related to Customer-funded Renewable Energy and DSM Programs		5.1		2.3		2.8		1.2		2.4		1.3
TEP O&M (GAAP)	$	143.8	$	120.1	$	69.1	$	61.5	$	74.7	$	58.6

UniSource Energy	Q3		Q4
O&M Components	2008		2008
	-millions-
TEP Base O&M (Non-GAAP)	$	52.4	$	60.6
UNS Gas O&M		5.7		6.7
UNS Electric O&M		8.4		7.9
Consolidating Adjustments & Other		1.8		(2.2	)
UniSource Energy Base O&M (Non-GAAP)	$	68.3	$	73.0
Reimbursed O&M Related to Springerville Units 3 and 4		9.7		9.0
Expenses Related to Customer-funded Renewable Energy and DSM Programs		2.4		3.9
Transmission Expense		5.0		1.1
UniSource Energy O&M (GAAP)	$	80.4	$	85.9

TEP	Q3		Q4
O&M Components	2008		2008
	-millions-
Wages, A&G, Other	$	37.5	$	39.1
Generating Plant Maintenance Expense		12.3		18.9
Pension and Postretirement Benefits Expense		2.6		2.6
TEP Base O&M (Non-GAAP)	$	52.4	$	60.6
Reimbursed O&M Related to Springerville Units 3 and 4		9.7		9.0
Expenses Related to Customer-funded Renewable Energy and DSM Programs		1.8		2.9
Transmission Expense		5.0		1.1
TEP O&M (GAAP)	$	68.9	$	73.6

TUCSON ELECTRIC POWER — OPERATING STATISTICS

	3 Months Ended June 30													Year-to-Date June 30
	2009			2008			Incr (Decr)				% Change			2009			2008			Incr (Decr)			% Change
AVG. ELECTRIC CUSTOMERS
Residential		364,885			362,561			2,324				0.6	%		364,855			362,436			2,419			0.7	%
Commercial		35,643			35,048			595				1.7	%		35,573			34,968			605			1.7	%
Industrial		628			639			(11	)			-1.8	%		632			639			(7	)		-1.1	%
Mining		2			2			—				0.0	%		2			2			—			0.0	%
Other		61			61			—				0.0	%		61			61			—			0.0	%
Total		401,219			398,311			2,908				0.7	%		401,123			398,106			3,017			0.8	%
RETAIL SALES — MWH
Residential		948,839			944,174			4,665				0.5	%		1,676,017			1,717,013			(40,996	)		-2.4	%
Commercial		521,696			541,676			(19,980	)			-3.7	%		925,559			957,134			(31,575	)		-3.3	%
Industrial		549,331			566,782			(17,451	)			-3.1	%		1,038,839			1,084,262			(45,423	)		-4.2	%
Mining		264,925			277,426			(12,501	)			-4.5	%		523,619			543,880			(20,261	)		-3.7	%
Other		71,599			72,974			(1,375	)			-1.9	%		121,615			127,826			(6,211	)		-4.9	%
Total		2,356,390			2,403,032			(46,642	)			-1.9	%		4,285,649			4,430,115			(144,466	)		-3.3	%
RETAIL USAGE — KWH/CUSTOMER
Residential		2,600			2,604			(4	)			-0.1	%		4,594			4,737			(144	)		-3.0	%
Commercial		14,637			15,455			(819	)			-5.3	%		26,019			27,372			(1,353	)		-4.9	%
Industrial		875,195			886,983			(11,787	)			-1.3	%		1,643,733			1,696,811			(53,078	)		-3.1	%
Mining		132,462,500			138,713,000			(6,250,500	)			-4.5	%		261,809,500			271,940,000			(10,130,500	)		-3.7	%
Other		1,173,754			1,196,295			(22,541	)			-1.9	%		1,993,689			2,095,508			(101,820	)		-4.9	%
Total		5,873			6,033			(160	)			-2.7	%		10,684			11,128			(444	)		-4.0	%
RETAIL REVENUES — MILLIONS
Residential	$	93.5		$	88.1		$	5.4				6.2	%	$	157.9		$	153.1		$	4.8			3.1	%
Commercial		59.1			56.6			2.5				4.4	%		99.6			98.9			0.7			0.7	%
Industrial		42.9			41.9			1.0				2.4	%		76.7			78.2			(1.5	)		-1.9	%
Mining		16.0			14.1			1.9				13.4	%		29.0			27.5			1.5			5.5	%
Other		5.8			5.4			0.4				7.9	%		9.4			9.5			(0.1	)		-1.1	%
Total	$	217.2		$	206.0		$	11.3				5.5	%	$	372.6		$	367.2		$	5.4			1.5	%
DSM / REST		2.8			(0.5	)		3.3		��		N/M			5.2			0.2			5.0			N/M
Total Retail Revenues	$	220.0		$	205.5		$	14.6				7.1	%	$	377.8		$	367.4		$	10.4			2.8	%
WEATHER — COOLING DEGREE DAYS
Actual		417			420			(3	)			-0.7	%		417			420			(3	)		-0.7	%
10-Year Average		440			457										441			457
% Change Actual vs. 10-Year Avg.		-5.2	%		-8.1	%									-5.4	%		-8.1	%
ENERGY MARKET INDICATORS
Avg. Wholesale Power Prices
Palo Verde Index — $/MWh
On Peak	$	30.46		$	91.94		$	(61.48	)			-66.9	%	$	32.11		$	81.02		$	(48.91	)		-60.4	%
Off Peak	$	19.16		$	63.55		$	(44.39	)			-69.9	%	$	22.48		$	61.89		$	(39.41	)		-63.7	%
Avg. Natural Gas Prices
Permian Index — $/MMBtu	$	2.76		$	9.44		$	(6.68	)			-70.8	%	$	3.17		$	8.37		$	(5.20	)		-62.1	%

UNS GAS — OPERATING STATISTICS

	3 Months Ended June 30												6 Months Ended June 30
	2009			2008			Incr (Decr)			% Change			2009			2008			Incr (Decr)			% Change
AVG. GAS CUSTOMERS
Residential		132,414			132,316			98			0.1	%		132,813			132,862			(49	)		0.0	%
Commercial		11,371			11,448			(77	)		-0.7	%		11,449			11,532			(83	)		-0.7	%
All Other		1,109			1,104			5			0.5	%		1,108			1,105			3			0.3	%
Total		144,894			144,868			26			0.0	%		145,370			145,499			(129	)		-0.1	%
RETAIL SALES — THOUSANDS OF THERMS
Residential		9,797			9,933			(136	)		-1.4	%		39,366			44,727			(5,361	)		-12.0	%
Commercial		5,343			5,429			(86	)		-1.6	%		15,717			17,588			(1,871	)		-10.6	%
All Other		1,279			1,203			76			6.3	%		4,803			5,423			(620	)		-11.4	%
Total		16,419			16,565			(146	)		-0.9	%		59,886			67,738			(7,852	)		-11.6	%
RETAIL USAGE — THERMS/CUSTOMER
Residential		74.0			75.1			(1	)		-1.4	%		296			337			(40	)		-12.0	%
Commercial		469.8			474.2			(4	)		-0.9	%		1,373			1,525			(152	)		-10.0	%
RETAIL REVENUES — MILLIONS
Non-Fuel Revenues:
Residential	$	6.6		$	6.7			(0.1	)		-1.3	%	$	19.5		$	21.4			(1.9	)		-8.8	%
Commercial		1.9			1.9			(0.0	)		-1.5	%		5.0			5.6			(0.5	)		-9.6	%
All Other		0.3			0.3			0.0			4.5	%		1.1			1.3			(0.1	)		-11.4	%
Total	$	8.8		$	8.9		$	(0.1	)		-1.2	%	$	25.6		$	28.2		$	(2.6	)		-9.1	%
DSM Revenues		0.1			0.1			0.0			3.1	%		0.2			0.1			0.1			106.2	%
Transport/NSP Revenues		3.4			8.9			(5.4	)		-61.2	%		8.7			14.7			(5.4	)		-36.8	%
Fuel Revenues:
Recovered from Customers		13.5			14.1			(0.6	)		-4.1	%		50.7			54.3			(3.7	)		-6.8	%
Total Gas Revenues	$	25.8		$	31.9		$	(6.1	)		-19.1	%	$	85.2		$	97.3		$	(12.1	)		-12.4	%
WEATHER — HEATING DEGREE DAYS
Actual		2,752			3,406			(654	)		-19.2	%		13,880			16,033			(2,153	)		-13.4	%
10-Year Average		3,034			2,633									14,994			13,095
% Change Actual vs. 10-Year Avg.		-9.3	%		29.4	%								-7.4	%		22.4	%

UNS ELECTRIC — OPERATING STATISTICS

	3 Months Ended June 30												6 Months Ended June 30
	2009			2008			Incr (Decr)			% Change			2009			2008			Incr (Decr)			% Change
AVG. ELECTRIC CUSTOMERS
Residential		79,496			79,459			37			0.0	%		79,452			79,468			(16	)		0.0	%
Commercial		10,342			10,331			11			0.1	%		10,343			10,320			23			0.2	%
All Other		285			273			12			4.4	%		283			272			11			4.0	%
Total		90,123			90,063			60			0.1	%		90,078			90,060			18			0.0	%
RETAIL SALES — MWH
Residential		184,126			183,678			448			0.2	%		350,696			366,998			(16,302	)		-4.4	%
Commercial		159,585			167,487			(7,902	)		-4.7	%		293,235			302,029			(8,794	)		-2.9	%
Industrial		49,478			47,788			1,690			3.5	%		87,834			92,575			(4,741	)		-5.1	%
Mining		39,680			6,247			33,433		NM				73,607			11,751			61,856		NM
Other		476			571			(95	)		-16.6	%		1,087			1,179			(92	)		-7.8	%
Total		433,345			405,771			27,574			6.8	%		806,459			774,532			31,927			4.1	%
RETAIL USAGE — KWH/CUSTOMER
Residential		2,316			2,312			5			0.2	%		4,414			4,618			(204	)		-4.4	%
Commercial		15,431			16,212			(781	)		-4.8	%		28,351			29,266			(915	)		-3.1	%
RETAIL REVENUES — MILLIONS
Non-Fuel Revenues:
Residential	$	4.7		$	5.4			(0.6	)		-11.8	%	$	9.0		$	11.1			(2.1	)		-18.7	%
Commercial		5.8			5.8			0.0			0.8	%		10.8			10.1			0.7			7.3	%
Industrial		1.6			0.3			1.2		NM				3.5			0.8			2.7		NM
Mining		0.8			0.5			0.4			80.3	%		1.1			0.5			0.6		NM
Other		0.1			0.1			(0.0	)		-14.5	%		0.1			0.1			(0.0	)		-4.4	%
Total	$	13.0		$	12.0		$	1.0			8.4	%	$	24.6		$	22.6		$	2.0			8.8	%
DSM / REST		1.0			0.1			0.9		NM				1.7			0.1			1.5		NM
Fuel Revenues:
Recovered from Customers		33.2			31.1			2.1			6.6	%		64.5			57.0			7.5			13.2	%
Total Retail Revenues	$	47.2		$	43.3		$	3.9			9.1	%	$	90.8		$	79.7		$	11.0			13.8	%
WEATHER — COOLING DEGREE DAYS
Actual		2,967			2,717			250			9.2	%		3,044			2,805			239			8.5	%
10-Year Average		2,891			2,682									3,002			2,971
% Change Actual vs. 10-Year Avg.		2.6	%		1.3	%								1.4	%		-5.6	%

BASIC AND DILUTED SHARES OUTSTANDING

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2009		2008		2009		2008
	-Thousands of Dollars-				-Thousands of Dollars-
Numerator:
Net Income	$	31,275	$	4,747	$	36,194	$	2,132
Income from Assumed Conversion of Convertible Senior Notes		1,097		—		2,195		—
Adjusted Numerator	$	32,372	$	4,747	$	38,389	$	2,132
Denominator:
Weighted-average Shares of Common Stock Outstanding:
Common Shares Issued		35,589		35,401		35,573		35,367
Fully Vested Deferred Stock Units		98		211		103		218
Total Weighted-average Shares of Common Stock Outstanding-Basic		35,687		35,612		35,676		35,585
Effect of Dilutive Securities:
Convertible Senior Notes		4,536		—		4,573		—
Options and Stock Issuable under Employee Benefit Plans and the Directors’ Plan		449		563		494		540
Total Shares — Diluted		40,223		36,175		40,249		36,125

For the three and six months ended June 30, 2008, 4 million potentially dilutive shares from the conversion of convertible senior notes, and after-tax interest expense of $1 million and $2 million, respectively, were not included in the computation of diluted EPS because to do so would be anti-dilutive.

The following table shows the number of stock options to purchase shares of Common Stock excluded from the computation of diluted EPS because the stock option’s exercise price was greater than the average market price of the Common Stock:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2009		2008		2009		2008
	-In Thousands-				-In Thousands-
Stock Options Excluded from the Diluted EPS Computation		395		234		395		314