Earnings Per Share

9 Months Ended

Sep. 30, 2019

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,
	2019		2018		2019		2018
	(In millions, except per share amounts)
Basic Earnings per Share
Net Income Attributable to DTE Energy Company	$	319	$	334	$	902	$	929
Less: Allocation of earnings to net restricted stock awards	1		1		2		2
Net income available to common shareholders — basic	$	318	$	333	$	900	$	927

Average number of common shares outstanding — basic	183		182		183		181
Basic Earnings per Common Share	$	1.74	$	1.84	$	4.93	$	5.13

Diluted Earnings per Share
Net Income Attributable to DTE Energy Company	$	319	$	334	$	902	$	929
Less: Allocation of earnings to net restricted stock awards	1		1		2		2
Net income available to common shareholders — diluted	$	318	$	333	$	900	$	927

Average number of common shares outstanding — basic	183		182		183		181
Incremental shares attributable to:
Average dilutive equity units, performance share awards, and stock options	1		—		1		—
Average number of common shares outstanding — diluted	184		182		184		181
Diluted Earnings per Common Share^(a)	$	1.73	$	1.84	$	4.91	$	5.13

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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 6.4 million for the nine months ended September 30, 2018 as the dilutive stock price threshold was not met.

On October 1, 2019, DTE Energy issued approximately 5.87 million shares of common stock under the stock purchase contracts associated with DTE Energy's 2016 Series C Equity Units for $675 million. Refer to Note 10 to the Consolidated Financial Statements, "Long-Term Debt" for additional information.