Average dilutive equity units and performance share awards (in shares)

[Table of Contents](#ie1b09d57e49a40aaa81f572e6311eac9_10)DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements (Unaudited) — (Continued)NOTE 7 — EARNINGS PER SHAREBasic earnings per share is calculated by dividing net income, adjusted for income allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the dilution that would occur if any potentially dilutive instruments were exercised or converted into common shares. DTE Energy’s participating securities are restricted shares under the stock incentive program that contain rights to receive non-forfeitable dividends. Equity units and performance shares do not receive cash dividends; as such, these awards are not considered participating securities.The following is a reconciliation of DTE Energy's basic and diluted income per share calculation:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Three Months Ended March 31, |
|  |  |  |  |  | 2022 |  | 2021 |
|  |  |  |  |  | (In millions, except per share amounts) |
| Basic Earnings per Share |  |  |  |  |  |  |  |
| Net Income Attributable to DTE Energy Company — continuing operations |  |  |  |  | $ | 394  |  |  | $ | 320  |  |
| Less: Allocation of earnings to net restricted stock awards |  |  |  |  | 1  |  |  | —  |  |
|  |  |  |  |  | $ | 393  |  |  | $ | 320  |  |
| Net Income Attributable to DTE Energy Company — discontinued operations |  |  |  |  | —  |  |  | 77  |  |
| Net income available to common shareholders — basic |  |  |  |  | $ | 393  |  |  | $ | 397  |  |
|  |  |  |  |  |  |  |  |
| Average number of common shares outstanding — basic |  |  |  |  | 193  |  |  | 194  |  |
|  |  |  |  |  |  |  |  |
| Income from continuing operations |  |  |  |  | $ | 2.03  |  |  | $ | 1.65  |  |
| Income from discontinued operations |  |  |  |  | —  |  |  | 0.40  |  |
| Basic Earnings per Common Share |  |  |  |  | $ | 2.03  |  |  | $ | 2.05  |  |
|  |  |  |  |  |  |  |  |
| Diluted Earnings per Share |  |  |  |  |  |  |  |
| Net Income Attributable to DTE Energy Company — continuing operations |  |  |  |  | $ | 394  |  |  | $ | 320  |  |
| Less: Allocation of earnings to net restricted stock awards |  |  |  |  | 1  |  |  | —  |  |
|  |  |  |  |  | $ | 393  |  |  | $ | 320  |  |
| Net Income Attributable to DTE Energy Company — discontinued operations |  |  |  |  | —  |  |  | 77  |  |
| Net income available to common shareholders — diluted |  |  |  |  | $ | 393  |  |  | $ | 397  |  |
|  |  |  |  |  |  |  |  |
| Average number of common shares outstanding — basic |  |  |  |  | 193  |  |  | 194  |  |
|  |  |  |  |  |  |  |  |
| Average dilutive equity units and performance share awards |  |  |  |  | 1  |  |  | —  |  |
| Average number of common shares outstanding — diluted |  |  |  |  | 194  |  |  | 194  |  |
|  |  |  |  |  |  |  |  |
| Income from continuing operations |  |  |  |  | $ | 2.03  |  |  | $ | 1.65  |  |
| Income from discontinued operations |  |  |  |  | —  |  |  | 0.40  |  |
| Diluted Earnings per Common Share(a) |  |  |  |  | $ | 2.03  |  |  | $ | 2.05  |  |

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(a)Equity units excluded from the calculation of diluted EPS were approximately 10.7 million and 10.3 million for the three months ended March 31, 2022 and 2021, respectively, as the dilutive stock price threshold was not met.  
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