CONSUMERS ENERGY CO
For the period ended Dec 31, 2023. Filed Feb 8, 2024.
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FY2023 · Filed Feb 8, 2024
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13: 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 | |||
|---|---|---|---|
| Years Ended December 31 | 2023 | 2022 | 2021 |
| Income available to common stockholders | |||
| Income from continuing operations | $807 | $809 | $728 |
| Less loss attributable to noncontrolling interests | (79) | (24) | (23) |
| Less preferred stock dividends | 10 | 10 | 5 |
| Income from continuing operations available to common stockholders – basic and diluted | $876 | $823 | $746 |
| Average common shares outstanding | |||
| Weighted-average shares – basic | 291.2 | 289.5 | 289.0 |
| Add dilutive nonvested stock awards | 0.5 | 0.3 | 0.5 |
| Add dilutive forward equity sale contracts | — | 0.2 | — |
| Weighted-average shares – diluted | 291.7 | 290.0 | 289.5 |
| Income from continuing operations per average common share available to common stockholders | |||
| Basic | $3.01 | $2.84 | $2.58 |
| Diluted | 3.01 | 2.84 | 2.58 |
Nonvested Stock Awards
CMS Energy’s nonvested 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 nonvested stock awards are considered participating securities. As such, the participating nonvested 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 in the computation of basic EPS.
Forward Equity Sale Contracts
CMS Energy has entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 4, Financings and Capitalization.
Convertible Securities
In May 2023, CMS Energy issued an aggregate principal amount of $800 million convertible senior notes. Potentially dilutive common shares issuable upon conversion of the convertible senior notes are determined using the if-converted method for calculating diluted EPS. Upon conversion, the convertible senior notes are required to be paid in cash with only amounts exceeding the principal permitted to be settled in shares. The convertible senior notes were anti-dilutive for the year ended December 31, 2023. For further details on CMS Energy’s convertible senior notes, see Note 4, Financings and Capitalization.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.