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Reportable Segments
12 Months Ended
Dec. 31, 2012
Reportable Segments

17:REPORTABLE SEGMENTS

Reportable segments consist of business units defined by the products and services they offer.  CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.  The reportable segments for CMS Energy and Consumers are:

CMS Energy:

·

electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan;

·

gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan;

·

enterprises, consisting of various subsidiaries engaging primarily in domestic independent power production; and

·

other, including EnerBank, corporate interest and other expenses, and discontinued operations.

Consumers:

·

electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan;

·

gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan; and

·

other, including a consolidated special-purpose entity for the sale of accounts receivable.

Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies.  The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate.  Accounts are allocated among the segments when common accounts are attributable to more than one segment.  The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operation and maintenance expense, construction expense, leased property, taxes, or functional surveys.  For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars.

Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment.

Presented in the following tables is financial information by reportable segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Millions  

Years Ended December 31

2012 
2011 
2010 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

4,031 

 

$

3,913 

 

$

3,802 

 

Gas utility

 

 

1,982 

 

 

2,340 

 

 

2,354 

 

Enterprises

 

 

183 

 

 

204 

 

 

238 

 

Other

 

 

57 

 

 

46 

 

 

38 

 

Total operating revenue – CMS Energy

 

$

6,253 

 

$

6,503 

 

$

6,432 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

4,031 

 

$

3,913 

 

$

3,802 

 

Gas utility

 

 

1,982 

 

 

2,340 

 

 

2,354 

 

Total operating revenue – Consumers

 

$

6,013 

 

$

6,253 

 

$

6,156 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

459 

 

$

412 

 

$

450 

 

Gas utility

 

 

133 

 

 

130 

 

 

122 

 

Enterprises

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Total depreciation and amortization – CMS Energy

 

$

598 

 

$

546 

 

$

576 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

459 

 

$

412 

 

$

450 

 

Gas utility

 

 

133 

 

 

130 

 

 

122 

 

Total depreciation and amortization – Consumers

 

$

592 

 

$

542 

 

$

572 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Income from equity method investees1

 

 

 

 

 

 

 

 

 

 

Enterprises

 

$

17 

 

$

 

$

11 

 

Total income from equity method investees –  CMS Energy

 

$

17 

 

$

 

$

11 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Interest charges

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

179 

 

$

192 

 

$

202 

 

Gas utility

 

 

63 

 

 

71 

 

 

73 

 

Other

 

 

147 

 

 

152 

 

 

156 

 

Total interest charges – CMS Energy

 

$

389 

 

$

415 

 

$

431 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Interest charges

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

179 

 

$

192 

 

$

202 

 

Gas utility

 

 

63 

 

 

71 

 

 

73 

 

Other

 

 

 

 

 

 

 

Total interest charges – Consumers

 

$

244 

 

$

265 

 

$

277 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Millions  

Years Ended December 31

2012 
2011 
2010 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

227 

 

$

190 

 

$

187 

 

Gas utility

 

 

70 

 

 

77 

 

 

67 

 

Enterprises

 

 

(1)

 

 

(24)

 

 

14 

 

Other

 

 

(51)

 

 

(52)

 

 

(44)

 

Total income tax expense – CMS Energy

 

$

245 

 

$

191 

 

$

224 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

227 

 

$

190 

 

$

187 

 

Gas utility

 

 

70 

 

 

77 

 

 

67 

 

Total income tax expense – Consumers

 

$

297 

 

$

267 

 

$

254 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Net income (loss) available to common stockholders

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

325 

 

$

333 

 

$

303 

 

Gas utility

 

 

110 

 

 

130 

 

 

127 

 

Enterprises

 

 

16 

 

 

32 

 

 

36 

 

Other

 

 

(69)

 

 

(80)

 

 

(142)

 

Total net income available to common stockholders –
   CMS Energy

 

$

382 

 

$

415 

 

$

324 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholder

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

325 

 

$

333 

 

$

303 

 

Gas utility

 

 

110 

 

 

130 

 

 

127 

 

Other

 

 

 

 

 

 

 

Total net income available to common stockholder –
   Consumers

 

$

437 

 

$

465 

 

$

432 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Plant, property, and equipment, gross

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

11,041 

 

$

10,400 

 

$

9,944 

 

Gas utility

 

 

4,400 

 

 

4,206 

 

 

4,063 

 

Enterprises

 

 

113 

 

 

109 

 

 

102 

 

Other

 

 

38 

 

 

36 

 

 

36 

 

Total plant, property, and equipment – CMS Energy

 

$

15,592 

 

$

14,751 

 

$

14,145 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Plant, property, and equipment, gross

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

11,041 

 

$

10,400 

 

$

9,944 

 

Gas utility

 

 

4,400 

 

 

4,206 

 

 

4,063 

 

Other

 

 

15 

 

 

15 

 

 

15 

 

Total plant, property, and equipment – Consumers

 

$

15,456 

 

$

14,621 

 

$

14,022 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Investments in equity method investees1

 

 

 

 

 

 

 

 

 

 

Enterprises

 

$

55 

 

$

49 

 

$

48 

 

Other

 

 

 

 

 

 

 

Total investments in equity method investees – CMS Energy

 

$

57 

 

$

50 

 

$

49 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Millions  

Years Ended December 31

2012 
2011 
2010 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

 

 

 

 

Electric utility2

 

$

10,423 

 

$

9,938 

 

$

9,321 

 

Gas utility2

 

 

5,016 

 

 

4,956 

 

 

4,614 

 

Enterprises

 

 

181 

 

 

242 

 

 

191 

 

Other

 

 

1,511 

 

 

1,316 

 

 

1,490 

 

Total assets – CMS Energy

 

$

17,131 

 

$

16,452 

 

$

15,616 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

 

 

 

 

Electric utility2

 

$

10,423 

 

$

9,938 

 

$

9,321 

 

Gas utility2

 

 

5,016 

 

 

4,956 

 

 

4,614 

 

Other

 

 

836 

 

 

768 

 

 

904 

 

Total assets – Consumers

 

$

16,275 

 

$

15,662 

 

$

14,839 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Capital expenditures3

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

921 

 

$

661 

 

$

642 

 

Gas utility

 

 

340 

 

 

261 

 

 

235 

 

Enterprises

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Total capital expenditures – CMS Energy

 

$

1,266 

 

$

928 

 

$

883 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Capital expenditures3

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

921 

 

$

661 

 

$

642 

 

Gas utility

 

 

340 

 

 

261 

 

 

235 

 

Total capital expenditures – Consumers

 

$

1,261 

 

$

922 

 

$

877 

 

 

1

Consumers had no significant equity method investments.

2

Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.

3

Amounts include purchase of capital lease additions.  Amounts also include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.

CMS Energy and Consumers had no international operating revenues or operating income for each of the years ended December 31, 2012, 2011, and 2010.  CMS Energy had international assets of less than $1 million at December 31, 2012, $1 million at December 31, 2011, and $3 million at December 31, 2010.  Consumers had no international assets for any of the years presented.

Consumers Energy Company [Member]
 
Reportable Segments

17:REPORTABLE SEGMENTS

Reportable segments consist of business units defined by the products and services they offer.  CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.  The reportable segments for CMS Energy and Consumers are:

CMS Energy:

·

electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan;

·

gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan;

·

enterprises, consisting of various subsidiaries engaging primarily in domestic independent power production; and

·

other, including EnerBank, corporate interest and other expenses, and discontinued operations.

Consumers:

·

electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan;

·

gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan; and

·

other, including a consolidated special-purpose entity for the sale of accounts receivable.

Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies.  The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate.  Accounts are allocated among the segments when common accounts are attributable to more than one segment.  The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operation and maintenance expense, construction expense, leased property, taxes, or functional surveys.  For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars.

Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment.

Presented in the following tables is financial information by reportable segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Millions  

Years Ended December 31

2012 
2011 
2010 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

4,031 

 

$

3,913 

 

$

3,802 

 

Gas utility

 

 

1,982 

 

 

2,340 

 

 

2,354 

 

Enterprises

 

 

183 

 

 

204 

 

 

238 

 

Other

 

 

57 

 

 

46 

 

 

38 

 

Total operating revenue – CMS Energy

 

$

6,253 

 

$

6,503 

 

$

6,432 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

4,031 

 

$

3,913 

 

$

3,802 

 

Gas utility

 

 

1,982 

 

 

2,340 

 

 

2,354 

 

Total operating revenue – Consumers

 

$

6,013 

 

$

6,253 

 

$

6,156 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

459 

 

$

412 

 

$

450 

 

Gas utility

 

 

133 

 

 

130 

 

 

122 

 

Enterprises

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Total depreciation and amortization – CMS Energy

 

$

598 

 

$

546 

 

$

576 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

459 

 

$

412 

 

$

450 

 

Gas utility

 

 

133 

 

 

130 

 

 

122 

 

Total depreciation and amortization – Consumers

 

$

592 

 

$

542 

 

$

572 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Income from equity method investees1

 

 

 

 

 

 

 

 

 

 

Enterprises

 

$

17 

 

$

 

$

11 

 

Total income from equity method investees –  CMS Energy

 

$

17 

 

$

 

$

11 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Interest charges

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

179 

 

$

192 

 

$

202 

 

Gas utility

 

 

63 

 

 

71 

 

 

73 

 

Other

 

 

147 

 

 

152 

 

 

156 

 

Total interest charges – CMS Energy

 

$

389 

 

$

415 

 

$

431 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Interest charges

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

179 

 

$

192 

 

$

202 

 

Gas utility

 

 

63 

 

 

71 

 

 

73 

 

Other

 

 

 

 

 

 

 

Total interest charges – Consumers

 

$

244 

 

$

265 

 

$

277 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Millions  

Years Ended December 31

2012 
2011 
2010 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

227 

 

$

190 

 

$

187 

 

Gas utility

 

 

70 

 

 

77 

 

 

67 

 

Enterprises

 

 

(1)

 

 

(24)

 

 

14 

 

Other

 

 

(51)

 

 

(52)

 

 

(44)

 

Total income tax expense – CMS Energy

 

$

245 

 

$

191 

 

$

224 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

227 

 

$

190 

 

$

187 

 

Gas utility

 

 

70 

 

 

77 

 

 

67 

 

Total income tax expense – Consumers

 

$

297 

 

$

267 

 

$

254 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Net income (loss) available to common stockholders

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

325 

 

$

333 

 

$

303 

 

Gas utility

 

 

110 

 

 

130 

 

 

127 

 

Enterprises

 

 

16 

 

 

32 

 

 

36 

 

Other

 

 

(69)

 

 

(80)

 

 

(142)

 

Total net income available to common stockholders –
   CMS Energy

 

$

382 

 

$

415 

 

$

324 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholder

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

325 

 

$

333 

 

$

303 

 

Gas utility

 

 

110 

 

 

130 

 

 

127 

 

Other

 

 

 

 

 

 

 

Total net income available to common stockholder –
   Consumers

 

$

437 

 

$

465 

 

$

432 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Plant, property, and equipment, gross

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

11,041 

 

$

10,400 

 

$

9,944 

 

Gas utility

 

 

4,400 

 

 

4,206 

 

 

4,063 

 

Enterprises

 

 

113 

 

 

109 

 

 

102 

 

Other

 

 

38 

 

 

36 

 

 

36 

 

Total plant, property, and equipment – CMS Energy

 

$

15,592 

 

$

14,751 

 

$

14,145 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Plant, property, and equipment, gross

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

11,041 

 

$

10,400 

 

$

9,944 

 

Gas utility

 

 

4,400 

 

 

4,206 

 

 

4,063 

 

Other

 

 

15 

 

 

15 

 

 

15 

 

Total plant, property, and equipment – Consumers

 

$

15,456 

 

$

14,621 

 

$

14,022 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Investments in equity method investees1

 

 

 

 

 

 

 

 

 

 

Enterprises

 

$

55 

 

$

49 

 

$

48 

 

Other

 

 

 

 

 

 

 

Total investments in equity method investees – CMS Energy

 

$

57 

 

$

50 

 

$

49 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Millions  

Years Ended December 31

2012 
2011 
2010 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

 

 

 

 

Electric utility2

 

$

10,423 

 

$

9,938 

 

$

9,321 

 

Gas utility2

 

 

5,016 

 

 

4,956 

 

 

4,614 

 

Enterprises

 

 

181 

 

 

242 

 

 

191 

 

Other

 

 

1,511 

 

 

1,316 

 

 

1,490 

 

Total assets – CMS Energy

 

$

17,131 

 

$

16,452 

 

$

15,616 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

 

 

 

 

Electric utility2

 

$

10,423 

 

$

9,938 

 

$

9,321 

 

Gas utility2

 

 

5,016 

 

 

4,956 

 

 

4,614 

 

Other

 

 

836 

 

 

768 

 

 

904 

 

Total assets – Consumers

 

$

16,275 

 

$

15,662 

 

$

14,839 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

Capital expenditures3

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

921 

 

$

661 

 

$

642 

 

Gas utility

 

 

340 

 

 

261 

 

 

235 

 

Enterprises

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Total capital expenditures – CMS Energy

 

$

1,266 

 

$

928 

 

$

883 

 

Consumers

 

 

 

 

 

 

 

 

 

 

Capital expenditures3

 

 

 

 

 

 

 

 

 

 

Electric utility

 

$

921 

 

$

661 

 

$

642 

 

Gas utility

 

 

340 

 

 

261 

 

 

235 

 

Total capital expenditures – Consumers

 

$

1,261 

 

$

922 

 

$

877 

 

 

1

Consumers had no significant equity method investments.

2

Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.

3

Amounts include purchase of capital lease additions.  Amounts also include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.

CMS Energy and Consumers had no international operating revenues or operating income for each of the years ended December 31, 2012, 2011, and 2010.  CMS Energy had international assets of less than $1 million at December 31, 2012, $1 million at December 31, 2011, and $3 million at December 31, 2010.  Consumers had no international assets for any of the years presented.