Earnings Per Share - CMS Energy

3 Months Ended

Mar. 31, 2015

Earnings Per Share - CMS Energy [Abstract]

Earnings Per Share - CMS Energy

10: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 March 31	2015			2014
Income available to common stockholders
Income from continuing operations available to    common stockholders – basic and diluted		$	202		$	204
Average common shares outstanding
Weighted-average shares – basic			274.8			266.1
Add dilutive contingently convertible securities			-			6.3
Add dilutive non-vested stock awards			0.9			0.6
Weighted-average shares – diluted			275.7			273.0
Income from continuing operations per average
common share available to common stockholders
Basic		$	0.73		$	0.77
Diluted			0.73			0.75

Contingently Convertible Securities

In June 2014, CMS Energy redeemed its remaining contingently convertible securities.  For the periods those securities were outstanding, they diluted EPS to the extent that the conversion value of the securities, which was based on the average market price of CMS Energy common stock, exceeded their principal value.

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.