Earnings Per Share

9 Months Ended

Sep. 30, 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 and performance shares 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,
	2020		2019		2020		2019
	(In millions, except per share amounts)
Basic Earnings per Share
Net Income Attributable to DTE Energy Company	$	476	$	319	$	1,093	$	902
Less: Allocation of earnings to net restricted stock awards	1		1		2		2
Net income available to common shareholders — basic	$	475	$	318	$	1,091	$	900

Average number of common shares outstanding — basic	193		183		192		183
Basic Earnings per Common Share	$	2.47	$	1.74	$	5.67	$	4.93

Diluted Earnings per Share
Net Income Attributable to DTE Energy Company	$	476	$	319	$	1,093	$	902
Less: Allocation of earnings to net restricted stock awards	1		1		2		2
Net income available to common shareholders — diluted	$	475	$	318	$	1,091	$	900

Average number of common shares outstanding — basic	193		183		192		183
Incremental shares attributable to:
Average dilutive equity units, performance share awards, and stock options	—		1		1		1
Average number of common shares outstanding — diluted	193		184		193		184
Diluted Earnings per Common Share^(a)	$	2.46	$	1.73	$	5.66	$	4.91

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(a)Equity Units excluded from the calculation of diluted EPS were approximately 10.3 million for the three and nine months ended September 30, 2020, as the dilutive stock price threshold was not met.