EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net income, adjusted for income allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the dilution that would occur if any potentially dilutive instruments were exercised or converted into common shares. DTE Energy’s participating securities are restricted shares under the stock incentive program that contain rights to receive non-forfeitable dividends. Equity units, performance shares, and stock options do not receive cash dividends; as such, these awards are not considered participating securities.

The following is a reconciliation of DTE Energy's basic and diluted income per share calculation:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In millions, except per share amounts)
Basic Earnings per Share
Net Income Attributable to DTE Energy Company	$	334	$	270	$	929	$	847
Less: Allocation of earnings to net restricted stock awards	1		1		2		2
Net income available to common shareholders — basic	$	333	$	269	$	927	$	845

Average number of common shares outstanding — basic	182		179		181		179
Basic Earnings per Common Share	$	1.84	$	1.51	$	5.13	$	4.72

Diluted Earnings per Share
Net Income Attributable to DTE Energy Company	$	334	$	270	$	929	$	847
Less: Allocation of earnings to net restricted stock awards	1		1		2		2
Net income available to common shareholders — diluted	$	333	$	269	$	927	$	845

Average number of common shares outstanding — diluted	182		179		181		179
Diluted Earnings per Common Share^(a)	$	1.84	$	1.51	$	5.13	$	4.72

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(a)	The 2016 Equity Units excluded from the calculation of diluted EPS were approximately 6.2 million for the three months ended September 30, 2018 and 2017, and 6.4 million for the nine months ended September 30, 2018 and 2017, as the dilutive stock price threshold was not met.