Company: DTK
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000936340-25-000097
Chunk: 135

Company: DTE ENERGY CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 135
---
 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.  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 31,20252024(In millions, except per share amounts)Basic Earnings per ShareNet Income Attributable to DTE Energy Company$445 $313 Less: Allocation of earnings to net restricted stock awards1 1 Net income available to common shareholders — basic$444 $312 Average number of common shares outstanding — basic207 206 Basic Earnings per Common Share$2.14 $1.51 Diluted Earnings per ShareNet Income Attributable to DTE Energy Company$445 $313 Less: Allocation of earnings to net restricted stock awards1 1 Net income available to common shareholders — diluted$444 $312 Average number of common shares outstanding — basic207 206 Average performance share awards— 1 Average number of common shares outstanding — diluted207 207 Diluted Earnings per Common Share$2.14 $1.51 

27

Table of ContentsDTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 7 — FAIR VALUE

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market.  Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities.  These inputs can be readily observable, market corroborated, or generally unobservable inputs.  The Registrants make certain assumptions they believe that market participants would use in pricing assets or liabilities, including assumptions about risk, and the risks inherent in the inputs to valuation techniques.  Credit risk of the Registrants and their counterparties is incorporated in the valuation of assets and liabilities through the use of credit reserves, the impact of which was immaterial at March 31, 2025 and December 31, 2024.  The Registrants believe they