Financial Instruments

3 Months Ended

Mar. 31, 2019

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Financial Instruments

Financial Instruments

Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short‑term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.

In Millions
	March 31, 2019															December 31, 2018
				Fair Value															Fair Value
	Carrying						Level									Carrying						Level
	Amount			Total			1			2			3			Amount			Total			1			2			3
CMS Energy, including Consumers
Assets
Long‑term receivables1		$	21		$	21		$	—		$	—		$	21		$	22		$	22		$	—		$	—		$	22
Notes receivable2		2,018			2,126			—			—			2,126			1,857			1,967			—			—			1,967
Securities held to maturity		22			22			—			22			—			22			21			—			21			—
Liabilities
Long-term debt3		11,926			12,404			1,147			9,418			1,839			11,589			11,630			459			9,404			1,767
Long-term payables4		27			28			—			—			28			27			27			—			—			27
Consumers
Assets
Long‑term receivables1		$	21		$	21		$	—		$	—		$	21		$	22		$	22		$	—		$	—		$	22
Notes receivable – related party5		105			105			—			—			105			106			106			—			—			106
Liabilities
Long‑term debt6		6,591			6,897			—			5,058			1,839			6,805			6,833			—			5,066			1,767

¹  Includes current accounts receivable of $13 million at March 31, 2019 and $14 million at December 31, 2018.

²  Includes current portion of notes receivable of $250 million at March 31, 2019 and $233 million at December 31, 2018. For further details, see Note 7, Notes Receivable.

³  Includes current portion of long‑term debt of $821 million at March 31, 2019 and $974 million at December 31, 2018.

⁴  Includes current portion of long‑term payables of $2 million at March 31, 2019 and $1 million at December 31, 2018.

⁵  Includes current portion of notes receivable – related party of $7 million at March 31, 2019 and December 31, 2018. For further details, see Note 7, Notes Receivable.

⁶  Includes current portion of long‑term debt of $26 million at March 31, 2019 and December 31, 2018.

The effects of third‑party credit enhancements were excluded from the fair value measurements of long‑term debt. The principal amount of CMS Energy’s long‑term debt supported by third‑party credit enhancements was $35 million at March 31, 2019 and December 31, 2018. The entirety of these amounts was at Consumers.

Debt securities classified as held to maturity consisted primarily of mortgage‑backed securities and Utah Housing Corporation bonds held by EnerBank. Presented in the following table are these investment securities:

In Millions
	March 31, 2019												December 31, 2018
	Cost			Unrealized Gains			Unrealized Losses			Fair Value			Cost			Unrealized Gains			Unrealized Losses			Fair Value
CMS Energy
Debt securities		$	22		$	—		$	—		$	22		$	22		$	—		$	1		$	21

Consumers Energy Company

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Financial Instruments

Financial Instruments

Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short‑term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.

In Millions
	March 31, 2019															December 31, 2018
				Fair Value															Fair Value
	Carrying						Level									Carrying						Level
	Amount			Total			1			2			3			Amount			Total			1			2			3
CMS Energy, including Consumers
Assets
Long‑term receivables1		$	21		$	21		$	—		$	—		$	21		$	22		$	22		$	—		$	—		$	22
Notes receivable2		2,018			2,126			—			—			2,126			1,857			1,967			—			—			1,967
Securities held to maturity		22			22			—			22			—			22			21			—			21			—
Liabilities
Long-term debt3		11,926			12,404			1,147			9,418			1,839			11,589			11,630			459			9,404			1,767
Long-term payables4		27			28			—			—			28			27			27			—			—			27
Consumers
Assets
Long‑term receivables1		$	21		$	21		$	—		$	—		$	21		$	22		$	22		$	—		$	—		$	22
Notes receivable – related party5		105			105			—			—			105			106			106			—			—			106
Liabilities
Long‑term debt6		6,591			6,897			—			5,058			1,839			6,805			6,833			—			5,066			1,767

¹  Includes current accounts receivable of $13 million at March 31, 2019 and $14 million at December 31, 2018.

²  Includes current portion of notes receivable of $250 million at March 31, 2019 and $233 million at December 31, 2018. For further details, see Note 7, Notes Receivable.

³  Includes current portion of long‑term debt of $821 million at March 31, 2019 and $974 million at December 31, 2018.

⁴  Includes current portion of long‑term payables of $2 million at March 31, 2019 and $1 million at December 31, 2018.

⁵  Includes current portion of notes receivable – related party of $7 million at March 31, 2019 and December 31, 2018. For further details, see Note 7, Notes Receivable.

⁶  Includes current portion of long‑term debt of $26 million at March 31, 2019 and December 31, 2018.

The effects of third‑party credit enhancements were excluded from the fair value measurements of long‑term debt. The principal amount of CMS Energy’s long‑term debt supported by third‑party credit enhancements was $35 million at March 31, 2019 and December 31, 2018. The entirety of these amounts was at Consumers.

Debt securities classified as held to maturity consisted primarily of mortgage‑backed securities and Utah Housing Corporation bonds held by EnerBank. Presented in the following table are these investment securities:

In Millions
	March 31, 2019												December 31, 2018
	Cost			Unrealized Gains			Unrealized Losses			Fair Value			Cost			Unrealized Gains			Unrealized Losses			Fair Value
CMS Energy
Debt securities		$	22		$	—		$	—		$	22		$	22		$	—		$	1		$	21