10: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
Three Months Ended March 31	2018			2017
Income available to common stockholders
Net income available to common stockholders – basic and diluted		$	241		$	199
Average common shares outstanding
Weighted-average shares – basic			281.5			278.9
Add dilutive nonvested stock awards			0.7			1.0
Weighted-average shares – diluted			282.2			279.9
Net income per average common share available to common stockholders
Basic		$	0.86		$	0.71
Diluted			0.86			0.71

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 basic EPS.