Earnings Per Share—CMS Energy

Presented in the following table are CMS Energy’s basic and diluted EPS computations based on net income:



In Millions, Except Per Share Amounts
Years Ended December 31	2018			2017			2016
Income available to common stockholders
Net income		$	659		$	462		$	553
Less income attributable to noncontrolling interests		2			2			2
Net income available to common stockholders – basic and diluted		$	657		$	460		$	551
Average common shares outstanding
Weighted-average shares – basic		282.2			280.0			277.9
Add dilutive nonvested stock awards		0.7			0.8			1.0
Weighted-average shares – diluted		282.9			280.8			278.9
Net income per average common share available to common stockholders
Basic		$	2.33		$	1.64		$	1.99
Diluted		2.32			1.64			1.98

Nonvested Stock Awards

CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS.

Forward Equity Sale Contracts

In November 2018, CMS Energy entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For the year ended December 31, 2018, the forward equity sale contracts had an immaterial impact on diluted EPS. For further details on the forward equity sale contracts, see Note 5, Financings and Capitalization.