NOTE 18 – EARNINGS PER SHARE (EPS) Basic EPS is calculated by dividing Net earnings attributable to Allegion plc by the weighted-average number of ordinary shares outstanding for the applicable period.
Diluted EPS is calculated after adjusting the denominator of the basic EPS calculation for the effect of all potentially dilutive ordinary shares, which in the Company’s case, includes shares issuable under share-based compensation plans.
The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations:
## Table 0 ##
At December 31, 2018, 0.1 million stock options were excluded from the computation of weighted-average diluted shares outstanding because the effect of including these shares would have been anti-dilutive.
NOTE 19 – NET REVENUES Net revenues are recognized based on the satisfaction of performance obligations under the terms of a contract.
A performance obligation is a promise in a contract to transfer control of a distinct product or to provide a service, or a bundle of products or services, to a customer, and is the unit of account under ASC 606.
The Company has two principal revenue streams, tangible product sales and services.
Approximately 99% of consolidated Net revenues involve contracts with a single performance obligation, which is the transfer of control of a product or bundle of products to a customer.
Transfer of control typically occurs when goods are shipped from the Company's facilities or at other predetermined control transfer points (for instance, destination terms).
Net revenues are measured as the amount of consideration expected to be received in exchange for transferring control of the products and takes into account variable consideration, such as sales incentive programs including discounts and volume rebates.
The existence of these programs does not preclude revenue recognition but does require the Company's best estimate of the variable consideration to be made based on expected activity, as these items are reserved for as a deduction to Net revenues over time based on the Company's historical rates of providing these incentives and annual forecasted sales volumes.
The Company also offers a standard warranty with most product sales and the value of such warranty is included in the contractual price.
The corresponding cost of the warranty obligation is accrued as a liability (see Note 20).
The Company's remaining Net revenues involve services, including installation and consulting.
Unlike the single performance obligation to ship a product or bundle of products, the service revenue stream delays revenue recognition until the service performance obligations are satisfied.
In some instances, customer acceptance provisions are included in sales arrangements to give the buyer the ability to ensure the service meets the criteria established in the order.
In these instances, revenue recognition is deferred until the performance obligations are satisfied, which could include acceptance terms specified in the arrangement being fulfilled through customer acceptance or a demonstration that established criteria have been satisfied.
During the year ended December 31, 2018, no adjustments related to performance obligations satisfied in previous periods were recorded.
Upon adoption of ASC 606, the Company used the practical expedients to omit the disclosure of remaining performance obligations for contracts with an original expected duration of one year or less and for contracts where the Company has the right to invoice for performance completed to date.
The transaction price is not adjusted for the effects of a significant financing component, as the time period between control transfer of goods and services is less than one year.
Sales, value-added and other similar taxes collected by the Company are excluded from Net revenues.
The Company has also elected to account for shipping and handling activities that occur after control of the related goods transfers as fulfillment activities instead of performance obligations.
These activities are included in Cost of goods sold in the Consolidated Statements of Comprehensive Income.
The Company’s payment terms are generally consistent with the industries in which their businesses operate.
The following table shows the Company's Net revenues for the years ended December 31, based on the two principal revenue streams, tangible product sales and services, disaggregated by business segment.
Net revenues are shown by tangible product sales and services, as contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty around revenue recognition and cash flows are substantially similar within each of the two principal revenue streams:
Notes to the Financial Statements — Continued For federal income tax purposes, Con Edison has a net operating loss carryforward available of $11 million and $632 million from 2012 and 2011, respectively, primarily as a result of accelerated depreciation and storm related deductions, which if unused will expire in 2032 and 2031.
Con Edison has recorded a deferred tax asset for its loss carryforward, and no valuation allowance has been provided, as it is more likely than not that the deferred tax asset will be realized.
For New York State income tax purposes, Con Edison has a net operating loss carryforward available from 2009 of $284 million, primarily as a result of repair allowance deductions discussed below.
A deferred tax asset has been recognized for this New York State net operating loss that will not expire until 2029.
A valuation allowance has not been provided; as it is more likely than not that the deferred tax asset will be realized.
Uncertain Tax Positions Under the accounting rules for income taxes, an enterprise shall not recognize the tax benefit attributable to a tax position unless such position is more likely than not to be sustained upon examination by taxing authorities, including resolution of any related appeals and litigation processes, based solely on the technical merits of the position.
The IRS has essentially completed its field audits of the Con Edison’s federal income tax returns through 2011.
Con Edison’s federal income tax returns for 1998 through 2011 reflect certain tax positions with which the IRS does not or may not agree.
Any adjustments to federal income tax returns would result in changes to Con Edison’s New York state income tax returns.
In addition, Con Edison’s state income tax returns for years beginning with 2006 remain open for examination.
The Companies’ 2011 and 2010 federal income tax returns reflect, among other things, an incremental current deduction for the costs of certain repairs to utility plant (the “repair allowance deductions”).
Prior to 2009, Con Edison capitalized such costs and included these costs in depreciation expense in its federal income tax returns.
At December 31, 2012, with respect to the repair allowance deductions, Con Edison recorded a liability for uncertain tax positions of $72 million ($66 million attributable to CECONY).
In August 2011, the IRS issued guidance regarding the use and evaluation of statistical samples and sampling estimates.
This guidance provides a safe harbor method of determining whether certain expenditures for electric transmission and distribution property can be currently deducted for federal income tax purposes.
No guidance was issued related to generation, gas, or steam property.
The IRS has essentially completed its field audits of the Con Edison’s federal income tax returns through 2011.
A reconciliation of the beginning and ending amounts of unrecognized tax benefits for Con Edison and CECONY follows:
## Table 1 ##
At December 31, 2012, the Companies’ estimated liabilities for uncertain tax positions ($86 million for Con Edison and $74 million for CECONY) were classified on their respective consolidated balance sheets either as current liabilities ($44 million for Con Edison and $36 million for CECONY) or as a reduction to current deferred tax assets ($42 million for Con Edison and $38 million for CECONY).
The Companies reasonably expect to resolve these uncertain tax positions with the IRS in the next 12 months.
The Companies recognize interest accrued related to the liability for uncertain tax positions in interest expense and would recognize penalties, if any, in operating expenses in the Companies’ consolidated income statements.
In 2012, 2011 and 2010, the Companies recognized an immaterial amount of interest and no penalties for uncertain tax positions in their consolidated income statements.
At December 31, 2012 and 2011, the Companies recognized an immaterial amount of interest and no penalties in their consolidated balance sheets.
At December 31, 2012, the total amount of unrecognized tax benefits that, if recognized, would affect the Companies’ effective tax rate is $7 million ($1 million attributable to CECONY).
In January 2013, a federal appeals court reversed a trial court decision that had allowed deductions claimed by Con Edison relating to Con Edison Development’s LILO transactions.
See Note J.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS – CONTINUED
## Table 2 ##
Cash Flows from Operating Activities The Utilities’ cash flows from operating activities reflect principally their energy sales and deliveries and cost of operations.
The volume of energy sales and deliveries is dependent primarily on factors external to the Utilities, such as growth of customer demand, weather, market prices for energy, economic conditions and measures that promote energy efficiency.
Under the revenue decoupling mechanisms in CECONY’s electric and gas rate plans and O&R’s New York electric and gas rate plans, changes in delivery volumes from levels assumed when rates were approved may affect the timing of cash flows but not net income.
See Note B to the financial statements in Item 8.
The prices at which the Utilities provide energy to their customers are determined in accordance with their rate agreements.
In general, changes in the Utilities’ cost of purchased power, fuel and gas may affect the timing of cash flows but not net income because the costs are recovered in accordance with rate agreements.
See “Recoverable Energy Costs” in Note A to the financial statements in Item 8.
The Companies’ cash flows from operating activities also reflect the timing of the deduction for income tax purposes of their construction expenditures.
Cash paid by Con Edison for income taxes, net of any refunds received was $46 million, $(236) million and $(25) million in 2012, 2011 and 2010, respectively (including $62 million, $(198) million and $(18) million for CECONY in 2012, 2011 and 2010, respectively).
For 2012, the Companies had no current federal income tax liability as a result of, among other things, deduction of costs incurred in connection with Superstorm Sandy.
Con Edison intends to apply estimated federal income tax payments made in 2012 (prior to Superstorm Sandy) to the payment of its 2013 tax liability.
For 2011 and 2010, the Companies had no current federal income tax liability as a result of, among other things, the bonus depreciation provisions of the American Recovery and Reinvestment Act of 2009, the Small Business Jobs Act of 2010 and the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.
In addition, the company changed its method of determining the timing of deductions of certain repairs to utility plant.
The American Taxpayer Relief Act of 2012, which was enacted in January 2013, extends bonus depreciation provisions to assets placed in service before January 2014 (or, for certain types of assets, January 2015).
For information about net operating loss carryforwards available for federal and state income tax purposes, see Note L to the financial statements in Item 8.
Net income is the result of cash and non-cash (or accrual) transactions.
Only cash transactions affect the Companies’ cash flows from operating activities.
Principal non-cash charges include depreciation and deferred income tax expense.
Principal non-cash credits include amortizations of certain net regulatory liabilities.
Non-cash charges or credits may also be accrued under the revenue decoupling and cost reconciliation mechanisms in the Utilities’ electric and gas rate plans in New York.
See “Rate Agreements – CECONY– Electric and Gas and O&R – Electric and Gas” in Note B to the financial statements in Item 8.
Net cash flows from operating activities in 2012 for Con Edison and CECONY were $538 million and $587 million lower, respectively, than in 2011.
The decreases in net cash flows reflect the higher estimated income tax payments, net of refund received, in 2012 ($282 million for Con Edison and $260 million for CECONY).
The decrease in net cash flows is also due to the increased pension contributions in 2012 ($244 million for Con Edison and $232 million for CECONY).
The Companies contributed $797 million and $553 million (of which $741 million and $509 million was contributed by CECONY) to the pension plan during 2012 and 2011, respectively.
Net cash flows from operating activities in 2011 for Con Edison and CECONY were $756 million and $728 million higher, respectively, than in 2010.
The increases in net cash flows reflect primarily lower estimated income tax payments, net of refunds received in 2011 ($211 million for Con Edison and $180 million for CECONY), lower cash collateral held by brokers and counterparties at the end of 2011, generally reflecting lower hedged volume and smaller decreases in commodity prices for derivative transactions ($82 million for Con Edison and $74 million for CECONY) and recoveries received in 2011 for costs incurred relating to the World Trade Center attack ($150 million).
The change in net cash flows also reflects the timing of payments for and recovery of energy costs.
This timing is reflected within changes to accounts receivable – customers, recoverable energy costs and accounts payable balances.
The changes in regulatory assets principally reflect changes in deferred pension costs in accordance with the accounting rules for retirement benefits and changes in future federal income taxes associated with increased removal costs.
See Notes A, B and E to the financial statements in Item 8.
M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS OF F INANCIAL C ONDITION AND R ESULTS OF O PERATIONS – C ONTINUED Other Income (Deductions) Other income (deductions) decreased $28 million in 2011 compared with 2010 due primarily to lower financing charges on changes in World Trade Center regulatory assets and liabilities ($16 million) and lower allowance for equity funds used during construction ($5 million).
See “Cash Flows from Operating Activities,” above and “Regulatory Assets and Liabilities” in Note B to the financial statements in Item 8.
Net Interest Expense Net interest expense decreased $15 million in 2011 compared with 2010 due primarily to lower interest rates on long-term debt in 2011.
Income Taxes Income taxes increased $63 million in 2011 compared with 2010 due primarily to higher income in 2011.
## Table 3 ##
Electric O&R’s results of electric operations for the year ended December 31, 2011 compared with the year ended December 31, 2010 is as follows
## Table 4 ##
O&R’s electric sales and deliveries, excluding off-system sales, in 2011 compared with 2010 were
## Table 5 ##
(a) “Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations.

Tables referenced above, in order (Table 0 first):
<table><tr><td>In millions</td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td>Weighted-average number of basic shares</td><td>95.0</td><td>95.1</td><td>95.8</td></tr><tr><td>Shares issuable under incentive stock plans</td><td>0.7</td><td>0.9</td><td>1.1</td></tr><tr><td>Weighted-average number of diluted shares</td><td>95.7</td><td>96.0</td><td>96.9</td></tr></table>
<table><tr><td></td><td colspan="3">Con Edison</td><td colspan="3">CECONY</td></tr><tr><td> (Millions of Dollars)</td><td>2012</td><td>2011</td><td>2010</td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Balance at January 1</td><td>$130</td><td>$93</td><td>$86</td><td>$114</td><td>$79</td><td>$92</td></tr><tr><td>Additions based on tax positions related to the current year</td><td>12</td><td>76</td><td>5</td><td>11</td><td>74</td><td>4</td></tr><tr><td>Additions based on tax positions of prior years</td><td>-</td><td>4</td><td>67</td><td>-</td><td>3</td><td>49</td></tr><tr><td>Reductions for tax positions of prior years</td><td>-57</td><td>-43</td><td>-4</td><td>-52</td><td>-42</td><td>-4</td></tr><tr><td>Settlements</td><td>1</td><td>-</td><td>-61</td><td>1</td><td>-</td><td>-62</td></tr><tr><td>Balance at December 31</td><td>$86</td><td>$130</td><td>$93</td><td>$74</td><td>$114</td><td>$79</td></tr></table>
<table><tr><td> (millions of dollars)</td><td>2012</td><td>2011</td><td>Variance 2012 vs. 2011</td><td>2010</td><td>Variance 2011 vs. 2010</td></tr><tr><td>Operating activities</td><td>$2,346</td><td>$2,933</td><td>$-587</td><td>$2,205</td><td>$728</td></tr><tr><td>Investing activities</td><td>-1,958</td><td>-1,947</td><td>-11</td><td>-1,998</td><td>51</td></tr><tr><td>Financing activities</td><td>-407</td><td>-692</td><td>285</td><td>-260</td><td>-432</td></tr><tr><td>Net change</td><td>-19</td><td>294</td><td>-313</td><td>-53</td><td>347</td></tr><tr><td>Balance at beginning of period</td><td>372</td><td>78</td><td>294</td><td>131</td><td>-53</td></tr><tr><td>Balance at end of period</td><td>$353</td><td>$372</td><td>$-19</td><td>$78</td><td>$294</td></tr></table>
<table><tr><td></td><td colspan="2"> Twelve Months Ended December 31, 2011</td><td colspan="4"> Twelve Months Ended December 31, 2010</td><td></td></tr><tr><td> (millions of dollars)</td><td> Electric</td><td> Gas</td><td> 2011 Total</td><td> Electric</td><td> Gas</td><td> 2010 Total</td><td>2011-2010 Variation</td></tr><tr><td>Operating revenues</td><td>$641</td><td>$214</td><td>$855</td><td>$692</td><td>$218</td><td>$910</td><td>$-55</td></tr><tr><td>Purchased power</td><td>267</td><td>-</td><td>267</td><td>335</td><td>-</td><td>335</td><td>-68</td></tr><tr><td>Gas purchased for resale</td><td>-</td><td>87</td><td>87</td><td>-</td><td>99</td><td>99</td><td>-12</td></tr><tr><td>Net revenues</td><td>374</td><td>127</td><td>501</td><td>357</td><td>119</td><td>476</td><td>25</td></tr><tr><td>Operations and maintenance</td><td>218</td><td>66</td><td>284</td><td>216</td><td>59</td><td>275</td><td>9</td></tr><tr><td>Depreciation and amortization</td><td>35</td><td>13</td><td>48</td><td>32</td><td>12</td><td>44</td><td>4</td></tr><tr><td>Taxes, other than income taxes</td><td>40</td><td>15</td><td>55</td><td>35</td><td>14</td><td>49</td><td>6</td></tr><tr><td> Operating income</td><td>$81</td><td>$33</td><td>$114</td><td>$74</td><td>$34</td><td>$108</td><td>$6</td></tr></table>
<table><tr><td></td><td colspan="3">Twelve Months Ended</td></tr><tr><td> (millions of dollars)</td><td> December 31, 2011</td><td> December 31, 2010</td><td>Variation</td></tr><tr><td>Operating revenues</td><td>$641</td><td>$692</td><td>$-51</td></tr><tr><td>Purchased power</td><td>267</td><td>335</td><td>-68</td></tr><tr><td>Net revenues</td><td>374</td><td>357</td><td>17</td></tr><tr><td>Operations and maintenance</td><td>218</td><td>216</td><td>2</td></tr><tr><td>Depreciation and amortization</td><td>35</td><td>32</td><td>3</td></tr><tr><td>Taxes, other than income taxes</td><td>40</td><td>35</td><td>5</td></tr><tr><td> Electric operating income</td><td>$81</td><td>$74</td><td>$7</td></tr></table>
<table><tr><td></td><td colspan="4">Millions of kWhs Delivered</td><td colspan="4">Revenues in Millions</td></tr><tr><td></td><td colspan="2"> Twelve Months Ended</td><td colspan="2"></td><td colspan="2">Twelve Months Ended</td><td colspan="2"></td></tr><tr><td> Description</td><td> December 31, 2011</td><td> December 31, 2010</td><td>Variation</td><td>Percent Variation</td><td>December 31, 2011</td><td>December 31, 2010</td><td>Variation</td><td>Percent Variation</td></tr><tr><td>Residential/Religious(a)</td><td>1,750</td><td>1,893</td><td>-143</td><td>-7.6%</td><td>$314</td><td>$347</td><td>$-33</td><td>-9.5%</td></tr><tr><td>Commercial/Industrial</td><td>1,168</td><td>1,495</td><td>-327</td><td>-21.9</td><td>161</td><td>211</td><td>-50</td><td>-23.7</td></tr><tr><td>Retail access customers</td><td>2,760</td><td>2,330</td><td>430</td><td>18.5</td><td>157</td><td>132</td><td>25</td><td>18.9</td></tr><tr><td>Public authorities</td><td>111</td><td>110</td><td>1</td><td>0.9</td><td>11</td><td>12</td><td>-1</td><td>-8.3</td></tr><tr><td>Other operating revenues</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-2</td><td>-10</td><td>8</td><td>80.0</td></tr><tr><td> Total</td><td> 5,789</td><td> 5,828</td><td>-39</td><td>-0.7%</td><td>$641</td><td>$692</td><td>$-51</td><td>-7.4%</td></tr></table>

Question: How many elements' value in 2011 are lower than the previous year ?
Answer: 2