Earnings Per Share (CenterPoint Energy)

The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per common share. Basic earnings per common share is determined by dividing Income available to common shareholders - basic by the Weighted average common shares outstanding - basic for the applicable period. Diluted earnings per common share is determined by the inclusion of potentially dilutive common stock equivalent shares that may occur if securities to issue Common Stock were exercised or converted into Common Stock.



	Three Months Ended March 31,
	2019		2018
	(in millions, except share and per share amounts)
Numerator:
Income available to common shareholders - basic	$	140	$	165
Add back: Series B Preferred Stock dividend	—		—
Income available to common shareholders - diluted	$	140	$	165

Denominator:
Weighted average common shares outstanding - basic	501,521,000		431,231,000
Plus: Incremental shares from assumed conversions:
Restricted stock (1)	2,423,000		2,777,000
Series B Preferred Stock (2)	—		—
Weighted average common shares outstanding - diluted	503,944,000		434,008,000

Earnings per common share:
Basic earnings per common share	$	0.28	$	0.38
Diluted earnings per common share	$	0.28	$	0.38


(1)	The potentially dilutive impact from restricted stock awards applies the treasury stock method. Under this method, an increase in the average fair market value of Common Stock can result in a greater dilutive impact from these securities.

(2)

The potentially dilutive impact from Series B Preferred Stock applies the if-converted method in calculating diluted earnings per common share. Under this method, diluted earnings per common share is adjusted for the more dilutive effect of the Series B Preferred Stock as a result of either its accumulated dividend for the period in the numerator or the assumed-converted common share equivalent in the denominator. The computation of diluted earnings per common share outstanding for the three months ended March 31, 2019 excludes 34,354,000 potentially dilutive shares because to include them would be anti-dilutive. However, these shares could be potentially dilutive in the future.