Earnings Per Share - CMS Energy

3 Months Ended

Mar. 31, 2012

Earnings Per Share - CMS Energy [Abstract]

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 March 31	2012		2011
Income Available to Common Stockholders
Income from Continuing Operations Available to Common Stockholders – Basic and Diluted	$	60	$	133

Average Common Shares Outstanding
Weighted average shares – basic		255.6		250.0
Add dilutive contingently convertible securities		10.4		10.7
Add dilutive non-vested stock awards and options		0.8		0.3
Add dilutive convertible debentures		—		0.7

Weighted average shares – diluted		266.8		261.7

Income from Continuing Operations per Average Common Share Available to Common Stockholders
Basic	$	0.23	$	0.53
Diluted		0.22		0.51

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

For three months ended March 31, 2012, CMS Energy's 7.75 percent 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 March 31	2012
Increase to numerator from assumed reduction in interest expense	$	1
Increase to denominator from assumed conversion of debentures into common shares		0.5

- Definition

The entire disclosure for earnings per share.

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