Earnings Per Share - CMS Energy

6 Months Ended

Jun. 30, 2012

Earnings Per Share - CMS Energy [Abstract]

Earnings Per Share - CMS Energy

6:     EARNINGS PER SHARE – CMS ENERGY

Presented in the following table are CMS Energy's basic and diluted EPS computations based on income from continuing operations:

In Millions, Except Per Share Amounts
	Three Months Ended				Six Months Ended
June 30	2012		2011		2012		2011
Income Available to Common Stockholders
Income from continuing operations	$	101	$	101	$	161	$	234
Less income attributable to noncontrolling interest		1		1		1		1
Income from Continuing Operations Available to Common Stockholders – Basic and Diluted	$	100	$	100	$	160	$	233
Average Common Shares Outstanding
Weighted average shares – basic		261.2		250.3		258.4		250.2
Add dilutive contingently convertible securities		5.9		11.3		8.3		11.0
Add dilutive non-vested stock awards and options		1.1		0.3		1.0		0.3
Weighted average shares – diluted		268.2		261.9		267.7		261.5
Income from Continuing Operations per Average Common Share Available to Common Stockholders
Basic	$	0.38	$	0.40	$	0.61	$	0.93
Diluted		0.37		0.38		0.59		0.89

CONTINGENTLY CONVERTIBLE SECURITIES

When CMS Energy has earnings from continuing operations, its contingently convertible securities dilute EPS to the extent that the conversion value of a security, which is based on the average market price of CMS Energy common stock, exceeds the principal value of that security.

NON-VESTED STOCK AWARDS

CMS Energy's non-vested 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 non-vested stock awards are considered participating securities. As such, the participating non-vested 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.

CONVERTIBLE DEBENTURES

CMS Energy redeemed all of its outstanding 7.75 percent Trust Preferred Securities in February 2012.  For the six-month period ended June 30, 2012 and for each of the three-month and six-month periods ended June 30, 2011, the Trust Preferred Securities would have increased diluted EPS had they been included in the calculation. Using the if-converted method, the debentures would have had the following impacts on the calculation of diluted EPS:

In Millions
	Three Months Ended				Six Months Ended
June 30	2012		2011		2012		2011
Increase to numerator from assumed reduction in interest expense		$        -		$        -		$        -		$        1
Increase to denominator from assumed conversion of debentures into common shares		-		0.7		0.2		0.7