2.2.0.7 false EARNINGS PER SHARE - CMS ENERGY 10601 - Disclosure - EARNINGS PER SHARE - CMS ENERGY true false false false 1 USD false false Unit1 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Unit13 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 $ 5 Earnings Per Share - CMS Energy 3 us-gaap_EarningsPerShareTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false terselabel false 1 false false false false 0 0 <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>6: EARNINGS PER SHARE — CMS ENERGY</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following table presents CMS Energy's basic and diluted EPS computations based on Income from Continuing Operations: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="9" nowrap="nowrap" align="right">In Millions, Except Per Share Amounts  </td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Three months ended September 30</td> <td> </td> <td colspan="3" nowrap="nowrap" align="right">2010  </td> <td> </td> <td colspan="3" nowrap="nowrap" align="right">2009  </td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="9" align="left"> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Income Available to Common Stockholders</b></div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Income from Continuing Operations</div></td> <td> </td> <td align="left">$</td> <td align="right">146</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">76</td> <td> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Less Income Attributable to Noncontrolling Interests</div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6</td> <td nowrap="nowrap">)</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Less Charge for Deferred Issuance Costs on Preferred Stock</div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Less Preferred Stock Dividends</div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2</td> <td nowrap="nowrap">)</td></tr> <tr style="font-size: 1px;"><td> </td> <td> </td> <td style="border-top: #000000 1px solid;" colspan="7" nowrap="nowrap" align="left"> </td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Income from Continuing Operations Available to Common Stockholders — Basic and Diluted</div></td> <td> </td> <td align="left">$</td> <td align="right">134</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">68</td> <td> </td></tr> <tr style="font-size: 1px;"><td> </td> <td> </td> <td style="border-top: #000000 3px double;" colspan="7" align="left"> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Average Common Shares Outstanding</b></div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Weighted Average Shares — Basic</div></td> <td> </td> <td> </td> <td align="right">229.0</td> <td> </td> <td> </td> <td> </td> <td align="right">227.3</td> <td> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Add dilutive Contingently Convertible Securities</div></td> <td> </td> <td> </td> <td align="right">24.9</td> <td> </td> <td> </td> <td> </td> <td align="right">11.1</td> <td> </td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Add dilutive Convertible Debentures</div></td> <td> </td> <td> </td> <td align="right">0.6</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Add dilutive Non-vested Stock Awards, Options, and Warrants</div></td> <td> </td> <td> </td> <td align="right">0.2</td> <td> </td> <td> </td> <td> </td> <td align="right">0.1</td> <td> </td></tr> <tr style="font-size: 1px;"><td> </td> <td> </td> <td style="border-top: #000000 1px solid;" colspan="7" align="left"> </td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Weighted Average Shares — Diluted</div></td> <td> </td> <td> </td> <td align="right">254.7</td> <td> </td> <td> </td> <td> </td> <td align="right">238.5</td> <td> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Income from Continuing Operations per Average Common Share Available to Common Stockholders</b></div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Basic</div></td> <td> </td> <td align="left">$</td> <td align="right">0.58</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.30</td> <td> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Diluted</div></td> <td> </td> <td align="left">$</td> <td align="right">0.53</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.29</td> <td> </td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="9" align="left"> </td></tr></table></div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="9" nowrap="nowrap" align="right">In Millions, Except Per Share Amounts  </td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Nine months ended September 30</td> <td> </td> <td colspan="3" nowrap="nowrap" align="right">2010  </td> <td> </td> <td colspan="3" nowrap="nowrap" align="right">2009  </td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="9" align="left"> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Income Available to Common Stockholders</b></div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Income from Continuing Operations</div></td> <td> </td> <td align="left">$</td> <td align="right">335</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">206</td> <td> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Less Income Attributable to Noncontrolling Interests</div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(9</td> <td nowrap="nowrap">)</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Less Charge for Deferred Issuance Costs on Preferred Stock</div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Less Preferred Stock Dividends</div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8</td> <td nowrap="nowrap">)</td></tr> <tr style="font-size: 1px;"><td> </td> <td> </td> <td style="border-top: #000000 1px solid;" colspan="7" nowrap="nowrap" align="left"> </td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Income from Continuing Operations Available to Common Stockholders — Basic and Diluted</div></td> <td> </td> <td align="left">$</td> <td align="right">316</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">189</td> <td> </td></tr> <tr style="font-size: 1px;"><td> </td> <td> </td> <td style="border-top: #000000 3px double;" colspan="7" align="left"> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Average Common Shares Outstanding</b></div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Weighted Average Shares — Basic</div></td> <td> </td> <td> </td> <td align="right">228.4</td> <td> </td> <td> </td> <td> </td> <td align="right">227.0</td> <td> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Add dilutive Contingently Convertible Securities</div></td> <td> </td> <td> </td> <td align="right">21.3</td> <td> </td> <td> </td> <td> </td> <td align="right">8.6</td> <td> </td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Add dilutive Non-vested Stock Awards, Options, and Warrants</div></td> <td> </td> <td> </td> <td align="right">0.1</td> <td> </td> <td> </td> <td> </td> <td align="right">0.1</td> <td> </td></tr> <tr style="font-size: 1px;"><td> </td> <td> </td> <td style="border-top: #000000 1px solid;" colspan="7" align="left"> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Weighted Average Shares — Diluted</div></td> <td> </td> <td> </td> <td align="right">249.8</td> <td> </td> <td> </td> <td> </td> <td align="right">235.7</td> <td> </td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Income from Continuing Operations per Average Common Share Available to Common Stockholders</b></div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Basic</div></td> <td> </td> <td align="left">$</td> <td align="right">1.38</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.83</td> <td> </td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Diluted</div></td> <td> </td> <td align="left">$</td> <td align="right">1.26</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.80</td> <td> </td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="9" align="left"> </td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Contingently Convertible Securities: </b>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's common stock, exceeds the principal value of that security. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In September 2010, CMS Energy exercised its mandatory conversion rights for all of its outstanding 4.50 percent cumulative convertible preferred stock and charged unamortized issuance costs of $8 million to Charge for Deferred Issuance Costs on Preferred Stock, in Accumulated Deficit, which reduced Net Income Available to Common Stockholders, on its Consolidated Statements of Income. In October 2010, CMS Energy issued 11,276,277 shares of its common stock upon conversion. For additional details on contingently convertible securities, see Note 5, Financings. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Stock Options and Warrants: </b>For each of the three and nine months ended September 30, 2010, outstanding options to purchase 0.4 million shares of CMS Energy common stock had no impact on diluted EPS, since the exercise price was greater than the average market price of CMS Energy common stock. These stock options have the potential to dilute EPS in the future. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Non-vested Stock Awards: </b>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.  </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Convertible Debentures: </b>For the nine months ended September 30, 2010 and for each of the three and nine months ended September 30, 2009, there was no impact on diluted EPS from CMS Energy's 7.75 percent convertible subordinated debentures. Using the if-converted method, the debentures would have: </div> <div style="margin-top: 6pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>increased the numerator of diluted EPS by less than $1 million for the three months ended September 30, 2009, from an assumed reduction of interest expense, net of tax;</td></tr> <tr><td style="font-size: 6pt;"> </td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>increased the denominator of diluted EPS by 0.7 million shares for the three months ended September 30, 2009;</td></tr> <tr><td style="font-size: 6pt;"> </td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>increased the numerator of diluted EPS by $1 million for the nine months ended September 30, 2010, and by $4 million for the nine months ended September 30, 2009, from an assumed reduction of interest expense, net of tax; and</td></tr> <tr><td style="font-size: 6pt;"> </td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>increased the denominator of diluted EPS by 0.7 million shares for the nine months ended September 30, 2010, and by 3.0 million shares for the nine months ended September 30, 2009.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS Energy can revoke the conversion rights if certain conditions are met. </div></div> </div> 6: EARNINGS PER SHARE — CMS ENERGY The following table presents CMS Energy's basic and diluted EPS computations based on Income from Continuing false false false us-types:textBlockItemType textblock This element may be used to capture the complete disclosure pertaining to an entity's earnings per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 false 1 1 false UnKnown UnKnown UnKnown false true