Leases and Palisades Financing - (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Line Items]

Assets and Liabilities of Lessee

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
December 31, 2019	CMS Energy, including Consumers				Consumers
Operating leases
Right-of-use assets1		$	47			$	40
Lease liabilities
Current lease liabilities2		9				8
Non‑current lease liabilities3		37				32
Finance leases
Right-of-use assets		$	71			$	71
Lease liabilities4
Current lease liabilities		6				6
Non‑current lease liabilities		60				60
Weighted-average remaining lease term (in years)
Operating leases		17				14
Finance leases		12				12
Weighted-average discount rate
Operating leases		3.8		%		3.7		%
Finance leases5		1.9				1.9

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 a summary of CMS Energy’s and Consumers’ total lease costs:

In Millions
Year Ended December 31, 2019	CMS Energy, including Consumers			Consumers
Operating lease costs		$	11		$	9
Finance lease costs
Amortization of right-of-use assets		6			6
Interest on lease liabilities		18			18
Variable lease costs		95			95
Total lease costs		$	130		$	128

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

In Millions
Year Ended December 31, 2019	CMS Energy, including Consumers			Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases		$	11		$	9
Cash used in operating activities for finance leases		18			18
Cash used in financing activities for finance leases		7			7

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
				Finance Leases
December 31, 2019	Operating Leases			Pipelines and PPAs			Other			Total
CMS Energy, including Consumers
2020		$	11		$	17		$	6		$	23
2021		11			17			6			23
2022		5			14			5			19
2023		3			13			5			18
2024		2			13			3			16
2025 and thereafter		35			78			12			90
Total minimum lease payments		$	67		$	152		$	37		$	189
Less discount		21			119			4			123
Present value of minimum lease payments		$	46		$	33		$	33		$	66
Consumers
2020		$	9		$	17		$	6		$	23
2021		9			17			6			23
2022		4			14			5			19
2023		3			13			5			18
2024		2			13			3			16
2025 and thereafter		29			78			12			90
Total minimum lease payments		$	56		$	152		$	37		$	189
Less discount		16			119			4			123
Present value of minimum lease payments		$	40		$	33		$	33		$	66

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
December 31, 2019
2020	$	55
2021	55
2022	48
2023	43
2024	43
2025 and thereafter	62
Total minimum lease payments	$	306

Debt Maturities

At December 31, 2019, the aggregate annual contractual maturities for long-term debt for the next five years were:

In Millions
	2020			2021			2022			2023			2024
CMS Energy, including Consumers
Long-term debt		$	1,111		$	538		$	1,354		$	669		$	808
Consumers
Long-term debt		$	202		$	27		$	653		$	354		$	332

Consumers Energy Company

Leases [Line Items]

Assets and Liabilities of Lessee

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
December 31, 2019	CMS Energy, including Consumers				Consumers
Operating leases
Right-of-use assets1		$	47			$	40
Lease liabilities
Current lease liabilities2		9				8
Non‑current lease liabilities3		37				32
Finance leases
Right-of-use assets		$	71			$	71
Lease liabilities4
Current lease liabilities		6				6
Non‑current lease liabilities		60				60
Weighted-average remaining lease term (in years)
Operating leases		17				14
Finance leases		12				12
Weighted-average discount rate
Operating leases		3.8		%		3.7		%
Finance leases5		1.9				1.9

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 a summary of CMS Energy’s and Consumers’ total lease costs:

In Millions
Year Ended December 31, 2019	CMS Energy, including Consumers			Consumers
Operating lease costs		$	11		$	9
Finance lease costs
Amortization of right-of-use assets		6			6
Interest on lease liabilities		18			18
Variable lease costs		95			95
Total lease costs		$	130		$	128

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

In Millions
Year Ended December 31, 2019	CMS Energy, including Consumers			Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases		$	11		$	9
Cash used in operating activities for finance leases		18			18
Cash used in financing activities for finance leases		7			7

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
				Finance Leases
December 31, 2019	Operating Leases			Pipelines and PPAs			Other			Total
CMS Energy, including Consumers
2020		$	11		$	17		$	6		$	23
2021		11			17			6			23
2022		5			14			5			19
2023		3			13			5			18
2024		2			13			3			16
2025 and thereafter		35			78			12			90
Total minimum lease payments		$	67		$	152		$	37		$	189
Less discount		21			119			4			123
Present value of minimum lease payments		$	46		$	33		$	33		$	66
Consumers
2020		$	9		$	17		$	6		$	23
2021		9			17			6			23
2022		4			14			5			19
2023		3			13			5			18
2024		2			13			3			16
2025 and thereafter		29			78			12			90
Total minimum lease payments		$	56		$	152		$	37		$	189
Less discount		16			119			4			123
Present value of minimum lease payments		$	40		$	33		$	33		$	66

Debt Maturities

At December 31, 2019, the aggregate annual contractual maturities for long-term debt for the next five years were:

In Millions
	2020			2021			2022			2023			2024
CMS Energy, including Consumers
Long-term debt		$	1,111		$	538		$	1,354		$	669		$	808
Consumers
Long-term debt		$	202		$	27		$	653		$	354		$	332

Presented in the following table are the minimum Palisades PPA payments included in the financing obligation:

In Millions
December 31, 2019
2020	$	14
2021	14
2022	3
Total minimum payments	$	31
Less discount	2
Financing obligation	$	29
Less current portion	13
Non-current portion	$	16