Schedule I - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

Schedule I - Condensed Financial Information of Registrant

CMS Energy—Parent Company

Condensed Statements of Income

In Millions
Years Ended December 31	2018				2017				2016
Operating Expenses
Other operating expenses		$	(7	)		$	(9	)		$	(14	)
Total operating expenses		(7		)		(9		)		(14		)
Operating Loss		(7		)		(9		)		(14		)
Other Income (Expense)
Equity earnings of subsidiaries		780				633				660
Nonoperating retirement benefits, net		(1		)		(1		)		(1		)
Interest income		2				1				1
Other income		—				2				—
Other expense		(17		)		(31		)		(19		)
Total other income		764				604				641
Interest Charges
Interest on long-term debt		135				143				150
Intercompany interest expense and other		7				3				1
Total interest charges		142				146				151
Income Before Income Taxes		615				449				476
Income Tax Benefit		(42		)		(11		)		(75		)
Net Income Available to Common Stockholders		$	657			$	460			$	551

The accompanying notes are an integral part of these statements.

Schedule I — Condensed Financial Information of Registrant (Continued)

CMS Energy—Parent Company

Condensed Statements of Cash Flows

In Millions
Years Ended December 31	2018				2017				2016
Cash Flows from Operating Activities
Net cash provided by operating activities		$	702			$	433			$	422
Cash Flows from Investing Activities
Investment in subsidiaries		(363		)		(447		)		(275		)
Proceeds from DB SERP investments		22				—				—
Net cash used in investing activities		(341		)		(447		)		(275		)
Cash Flows from Financing Activities
Proceeds from issuance of debt		560				799				603
Issuance of common stock		41				83				72
Retirement of long-term debt		(675		)		(425		)		(530		)
Debt prepayment costs		(16		)		(18		)		(18		)
Payment of dividends on common stock		(405		)		(375		)		(345		)
Debt issuance costs and financing fees		(8		)		(3		)		(5		)
Change in notes payable - intercompany		142				(47		)		76
Net cash provided by (used in) financing activities		(361		)		14				(147		)
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts		—				—				—
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period		—				—				—
Cash and Cash Equivalents, Including Restricted Amounts, End of Period		$	—			$	—			$	—

The accompanying notes are an integral part of these statements.

Schedule I — Condensed Financial Information of Registrant (Continued)

CMS Energy—Parent Company

Condensed Balance Sheets

ASSETS
In Millions
December 31	2018			2017
Current Assets
Notes and accrued interest receivable		$	2		$	5
Accounts receivable - intercompany and related parties		7			7
Federal income tax receivable		44			77
Accrued taxes		26			57
Prepayments and other current assets		1			1
Total current assets		80			147
Other Non-current Assets
Deferred income taxes		180			269
Investments in subsidiaries		7,706			7,202
Other investments – DB SERP		3			25
Other		10			2
Total other non-current assets		7,899			7,498
Total Assets		$	7,979		$	7,645

LIABILITIES AND EQUITY
In Millions
December 31	2018			2017
Current Liabilities
Current portion of long-term debt		$	180		$	225
Accounts and notes payable - intercompany		113			87
Accrued interest, including intercompany		32			34
Other current liabilities		7			5
Total current liabilities		332			351
Non-current Liabilities
Long-term debt		2,750			2,830
Notes payable - intercompany		116			—
Postretirement benefits		17			21
Other non-current liabilities		9			2
Total non-current liabilities		2,892			2,853
Equity
Common stockholders’ equity		4,755			4,441
Total Liabilities and Equity		$	7,979		$	7,645

The accompanying notes are an integral part of these statements.

Basis of Presentation

CMS Energy’s condensed financial statements have been prepared on a parent-only basis. In accordance with Rule 12-04 of Regulation S-X, these parent-only financial statements do not include all of the information and notes required by GAAP for annual financial statements, and therefore these parent-only financial statements and other information included should be read in conjunction with CMS Energy’s audited consolidated financial statements contained within Item 8. Financial Statements and Supplementary Data.

Guarantees

CMS Energy has issued guarantees with a maximum potential obligation of $433 million on behalf of some of its wholly owned subsidiaries and related parties. CMS Energy’s maximum potential obligation consists primarily of potential payments:

• to third parties under certain commodity purchase and swap agreements entered into with CMS ERM

• to third parties under certain agreements entered into with Grand River Wind LLC, a wholly owned subsidiary of CMS Enterprises

• to third parties in support of non‑recourse revenue bonds issued by Genesee

• to the MDEQ on behalf of CMS Land and CMS Capital, for environmental remediation obligations at Bay Harbor

• to the U.S. Department of Energy on behalf of Consumers, in connection with Consumers’ 2011 settlement agreement with the U.S. Department of Energy regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers

The expiry dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law.

Note Payable—Intercompany

In July 2018, CMS Energy issued a demand note payable to the DB SERP rabbi trust, of which $124 million was attributable to CMS Energy’s subsidiaries. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. This note payable is not recorded at fair value; however, its carrying value approximates fair value at December 31, 2018. This fair value measurement is classified in Level 3 within the fair value hierarchy.