Financial Instruments

9 Months Ended

Sep. 30, 2022

Financial Instruments [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 4, Fair Value Measurements.

In Millions
	September 30, 2022															December 31, 2021
	Carrying Amount			Fair Value												Carrying Amount			Fair Value
				Total			Level												Total			Level
							1			2			3									1			2			3
CMS Energy, including Consumers
Assets
Long-term receivables1		$	11		$	11		$	—		$	—		$	11		$	14		$	14		$	—		$	—		$	14
Liabilities
Long-term debt2		13,675			11,679			1,034			8,566			2,079			12,419			13,800			1,189			10,656			1,955
Long-term payables3		9			9			—			—			9			31			32			—			—			32
Consumers
Assets
Long-term receivables1		$	11		$	11		$	—		$	—		$	11		$	14		$	14		$	—		$	—		$	14
Notes receivable – related party4		101			101			—			—			101			104			104			—			—			104
Liabilities
Long-term debt5		9,746			8,132			—			6,053			2,079			8,415			9,410			—			7,455			1,955

1Includes current portion of long-term accounts receivable of $7 million at September 30, 2022 and $9 million at December 31, 2021.

2Includes current portion of long-term debt of $990 million at September 30, 2022 and $373 million at December 31, 2021.

3Includes current portion of long-term payables of $1 million at September 30, 2022 and $23 million at December 31, 2021.

4Includes current portion of notes receivable – related party of $7 million at September 30, 2022 and December 31, 2021.

5Includes current portion of long-term debt of $990 million at September 30, 2022 and $365 million at December 31, 2021.

The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028.

Consumers Energy Company

Financial Instruments [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 4, Fair Value Measurements.

In Millions
	September 30, 2022															December 31, 2021
	Carrying Amount			Fair Value												Carrying Amount			Fair Value
				Total			Level												Total			Level
							1			2			3									1			2			3
CMS Energy, including Consumers
Assets
Long-term receivables1		$	11		$	11		$	—		$	—		$	11		$	14		$	14		$	—		$	—		$	14
Liabilities
Long-term debt2		13,675			11,679			1,034			8,566			2,079			12,419			13,800			1,189			10,656			1,955
Long-term payables3		9			9			—			—			9			31			32			—			—			32
Consumers
Assets
Long-term receivables1		$	11		$	11		$	—		$	—		$	11		$	14		$	14		$	—		$	—		$	14
Notes receivable – related party4		101			101			—			—			101			104			104			—			—			104
Liabilities
Long-term debt5		9,746			8,132			—			6,053			2,079			8,415			9,410			—			7,455			1,955

1Includes current portion of long-term accounts receivable of $7 million at September 30, 2022 and $9 million at December 31, 2021.

2Includes current portion of long-term debt of $990 million at September 30, 2022 and $373 million at December 31, 2021.

3Includes current portion of long-term payables of $1 million at September 30, 2022 and $23 million at December 31, 2021.

4Includes current portion of notes receivable – related party of $7 million at September 30, 2022 and December 31, 2021.

5Includes current portion of long-term debt of $990 million at September 30, 2022 and $365 million at December 31, 2021.

The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028.