Note 6. Earnings Per Share

The following table presents the calculation of Dominion Energy’s basic and diluted EPS:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
(millions, except EPS)
Net income attributable to Dominion Energy	$	854	$	665	$	1,806	$	1,687
Average shares of common stock outstanding – Basic		653.9		642.5		652.4		633.4
Net effect of dilutive securities		1.0		—		0.4		—
Average shares of common stock outstanding – Diluted		654.9		642.5		652.8		633.4
Earnings Per Common Share – Basic	$	1.31	$	1.03	$	2.77	$	2.66
Earnings Per Common Share – Diluted	$	1.30	$	1.03	$	2.77	$	2.66

Dilutive securities consist primarily of forward sales agreements, effective April 2018. See Note 15 for more information regarding the forward sales agreements. In calculating the diluted EPS in connection with the forward sales agreements, Dominion Energy applies the treasury stock method.

The 2014 Equity Units were potentially dilutive securities, but were excluded from the calculation of diluted EPS for the three and nine months ended September 30, 2017, as the diluted stock price threshold was not met. The 2016 Equity Units are potentially dilutive securities, but were excluded from the calculation of diluted EPS for the three and nine months ended September 30, 2018 and 2017, as the dilutive stock price threshold was not met. The Dominion Energy Midstream convertible preferred units are potentially dilutive securities but had no effect on the calculation of diluted EPS for the three and nine months ended September 30, 2018 and 2017. In calculating diluted EPS in connection with the Dominion Energy Midstream convertible preferred units, Dominion Energy applies the if-converted method.