Earnings Per Share

12 Months Ended

Dec. 31, 2020

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. For additional information, see Notes 15 and 22 to the Consolidated Financial Statements, "Long-Term Debt" and "Stock-Based Compensation," respectively.

The following is a reconciliation of DTE Energy's basic and diluted income per share calculation for the years ended December 31:


	2020		2019		2018
	(In millions, except per share amounts)
Basic Earnings per Share
Net Income Attributable to DTE Energy Company	$	1,368	$	1,169	$	1,120
Less: Allocation of earnings to net restricted stock awards	(2)		(2)		(2)
Net income available to common shareholders — basic	$	1,366	$	1,167	$	1,118

Average number of common shares outstanding — basic	193		185		181
Basic Earnings per Common Share	$	7.09	$	6.32	$	6.18

Diluted Earnings per Share
Net Income Attributable to DTE Energy Company	$	1,368	$	1,169	$	1,120
Less: Allocation of earnings to net restricted stock awards	(2)		(2)		(2)
Net income available to common shareholders — diluted	$	1,366	$	1,167	$	1,118




Average number of common shares outstanding - diluted	193		185		181
Diluted Earnings per Common Share(a)	$	7.08	$	6.31	$	6.17

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(a)Equity Units excluded from the calculation of diluted EPS were approximately 10.3 million for the years ended December 31, 2020 and 2019, respectively, and 6.3 million for the year ended December 31, 2018, as the dilutive stock price threshold was not met. For more information, see Note 15 to the Consolidated Financial Statements, "Long-Term Debt."