Leases (Tables)

3 Months Ended

Mar. 31, 2019

Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:



In Millions, Except as Noted
March 31, 2019	CMS Energy, including Consumers				Consumers
Operating leases
Right-of-use assets¹		$	54			$	46
Lease liabilities
Current lease liabilities²		10				8
Non-current lease liabilities³		44				37
Finance leases
Right-of-use assets		$	78			$	78
Lease liabilities⁴
Current lease liabilities		8				8
Non-current lease liabilities		65				65
Weighted-average remaining lease term (in years)
Operating leases		14				13
Finance leases		12				12
Weighted-average discount rate
Operating leases		3.7		%		3.6		%
Finance leases⁵		2.0		%		2.0		%


¹	CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non-current assets on their consolidated balance sheets.


²	The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.


³	The non-current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non-current liabilities on their consolidated balance sheets.


⁴	This includes $25 million for leases with related parties, of which less than $1 million is current.


⁵	This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.

Lease Cost

Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities:



In Millions
Three Months Ended March 31, 2019	CMS Energy, including Consumers			Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for finance leases		$	4		$	4
Cash used in operating activities for operating leases		3			2
Cash used in financing activities for finance leases		2			2

Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:



In Millions
Three Months Ended March 31, 2019	CMS Energy, including Consumers			Consumers
Operating lease costs		$	3		$	2
Finance lease costs
Amortization of right-of-use assets		2			2
Interest on lease liabilities		4			4
Variable lease costs		31			31
Short-term lease costs		3			3
Total lease costs		$	43		$	42

Lessee Operating Lease Liability and Finance Liability Maturity

Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases:



In Millions
	Operating Leases												Finance Leases
March 31, 2019	Railcars			Real Estate			PPAs			Total			Real Estate			Service Vehicles			Gas Pipelines			PPAs			Total
CMS Energy, including Consumers
Remainder of 2019		$	5		$	2		$	1		$	8		$	—		$	6		$	3		$	10		$	19
2020		7			3			1			11			—			6			4			13			23
2021		7			3			1			11			—			5			5			13			23
2022		2			2			1			5			—			5			1			13			19
2023		1			2			—			3			—			5			1			13			19
2024		—			2			—			2			—			2			1			13			16
2025 and thereafter		—			34			1			35			10			3			3			74			90
Total minimum lease payments		$	22		$	48		$	5		$	75		$	10		$	32		$	18		$	149		$	209
Less discount		1			20			—			21			2			2			11			121			136
Present value of minimum lease payments		$	21		$	28		$	5		$	54		$	8		$	30		$	7		$	28		$	73
Consumers
Remainder of 2019		$	5		$	1		$	1		$	7		$	—		$	6		$	3		$	10		$	19
2020		7			2			1			10			—			6			4			13			23
2021		7			1			1			9			—			5			5			13			23
2022		2			1			1			4			—			5			1			13			19
2023		1			1			—			2			—			5			1			13			19
2024		—			1			—			1			—			2			1			13			16
2025 and thereafter		—			28			1			29			10			3			3			74			90
Total minimum lease payments		$	22		$	35		$	5		$	62		$	10		$	32		$	18		$	149		$	209
Less discount		1			16			—			17			2			2			11			121			136
Present value of minimum lease payments		$	21		$	19		$	5		$	45		$	8		$	30		$	7		$	28		$	73

Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases at December 31, 2018, prior to the adoption of ASU 2016-02:



In Millions
December 31, 2018	Capital Leases			Operating Leases
CMS Energy, including Consumers
2019		$	14		$	16
2020		11			15
2021		11			15
2022		8			8
2023		6			5
2024 and thereafter		21			38
Total minimum lease payments		$	71		$	97
Less discount		22
Present value of minimum lease payments		$	49
Less current portion		9
Non-current portion		$	40
Consumers
2019		$	14		$	14
2020		11			14
2021		11			13
2022		8			7
2023		6			5
2024		21			32
Total minimum lease payments		$	71		$	85
Less discount		22
Present value of minimum lease payments		$	49
Less current portion		9
Non-current portion		$	40

Lessor, Operating Lease, Payments to be Received, Maturity

Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases:



In Millions
March 31, 2019
Remainder of 2019	$	52
2020	52
2021	51
2022	47
2023	44
2024	44
2025 and thereafter	62
Total minimum lease payments	$	352

Sales-type and Direct Financing Leases, Lease Receivable, Maturity

Presented in the following table are the minimum rental payments to be received under CMS Energy’s and Consumers’ non‑cancelable direct financing leases:



In Millions
March 31, 2019	CMS Energy, including Consumers			Consumers
Remainder of 2019		$	—		$	1
2020		—			1
2021		—			1
2022		—			1
2023		—			1
2024		—			1
2025 and thereafter		10			19
Total minimum lease payments		$	10		$	25
Less unearned income		5			15
Present value of lease payments recognized as lease receivables		$	5		$	10

Consumers Energy Company

Leases [Line Items]

Assets and Liabilities of Lessee