Reportable Segments

12 Months Ended

Dec. 31, 2014

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. 

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.

CMS Energy

The reportable segments for CMS Energy are:

· 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

· enterprises, consisting of various subsidiaries engaging primarily in domestic independent power production.

CMS Energy presents EnerBank, corporate interest and other expenses, and discontinued operations within other reconciling items.

Consumers

The reportable segments for Consumers are:

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

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

Consumers’ other consolidated entities are presented within other reconciling items.

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

In Millions
Years Ended December 31	2014			2013			2012
CMS Energy, including Consumers
Operating revenue
Electric utility		$	4,436		$	4,173		$	4,031
Gas utility			2,363			2,148			1,982
Enterprises			299			181			183
Other reconciling items			81			64			57
Total operating revenue – CMS Energy		$	7,179		$	6,566		$	6,253
Consumers
Operating revenue
Electric utility		$	4,436		$	4,173		$	4,031
Gas utility			2,363			2,148			1,982
Other reconciling items			1			-			-
Total operating revenue – Consumers		$	6,800		$	6,321		$	6,013
CMS Energy, including Consumers
Depreciation and amortization
Electric utility		$	522		$	484		$	459
Gas utility			156			138			133
Enterprises			4			3			4
Other reconciling items			3			3			2
Total depreciation and amortization – CMS Energy		$	685		$	628		$	598
Consumers
Depreciation and amortization
Electric utility		$	522		$	484		$	459
Gas utility			156			138			133
Total depreciation and amortization – Consumers		$	678		$	622		$	592
CMS Energy, including Consumers
Income from equity method investees1
Enterprises		$	15		$	13		$	17
Total income from equity method investees – CMS Energy		$	15		$	13		$	17
CMS Energy, including Consumers
Interest charges
Electric utility		$	181		$	179		$	179
Gas utility			67			64			63
Other reconciling items			159			155			147
Total interest charges – CMS Energy		$	407		$	398		$	389
Consumers
Interest charges
Electric utility		$	181		$	179		$	179
Gas utility			67			64			63
Other reconciling items			2			2			2
Total interest charges – Consumers		$	250		$	245		$	244

In Millions
Years Ended December 31	2014			2013			2012
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility		$	211		$	242		$	227
Gas utility			95			104			70
Enterprises			(1)			(4)			(1)
Other reconciling items			(55)			(40)			(51)
Total income tax expense – CMS Energy		$	250		$	302		$	245
Consumers
Income tax expense
Electric utility		$	211		$	242		$	227
Gas utility			95			104			70
Total income tax expense – Consumers		$	306		$	346		$	297
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility		$	384		$	363		$	325
Gas utility			179			168			110
Enterprises			(1)			2			16
Other reconciling items			(85)			(81)			(69)
Total net income available to common stockholders –    CMS Energy		$	477		$	452		$	382
Consumers
Net income available to common stockholder
Electric utility		$	384		$	363		$	325
Gas utility			179			168			110
Other reconciling items			2			1			2
Total net income available to common stockholder –    Consumers		$	565		$	532		$	437
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility		$	12,230		$	11,186		$	11,041
Gas utility			5,335			4,843			4,400
Enterprises			115			115			113
Other reconciling items			41			40			38
Total plant, property, and equipment – CMS Energy		$	17,721		$	16,184		$	15,592
Consumers
Plant, property, and equipment, gross
Electric utility		$	12,230		$	11,186		$	11,041
Gas utility			5,335			4,843			4,400
Other reconciling items			15			15			15
Total plant, property, and equipment – Consumers		$	17,580		$	16,044		$	15,456
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises		$	58		$	57		$	55
Other reconciling items			3			2			2
Total investments in equity method investees – CMS Energy		$	61		$	59		$	57

In Millions
Years Ended December 31	2014			2013			2012
CMS Energy, including Consumers
Total assets
Electric utility2		$	11,582		$	10,487		$	10,423
Gas utility2			5,391			4,784			5,016
Enterprises			231			332			181
Other reconciling items			1,981			1,813			1,511
Total assets – CMS Energy		$	19,185		$	17,416		$	17,131
Consumers
Total assets
Electric utility2		$	11,582		$	10,487		$	10,423
Gas utility2			5,391			4,784			5,016
Other reconciling items			874			908			836
Total assets – Consumers		$	17,847		$	16,179		$	16,275
CMS Energy, including Consumers
Capital expenditures3
Electric utility		$	1,139		$	996		$	921
Gas utility			473			407			340
Enterprises			3			1			1
Other reconciling items			1			4			4
Total capital expenditures – CMS Energy		$	1,616		$	1,408		$	1,266
Consumers
Capital expenditures3
Electric utility		$	1,139		$	996		$	921
Gas utility			473			407			340
Total capital expenditures – Consumers		$	1,612		$	1,403		$	1,261

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.

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. 

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.

CMS Energy

The reportable segments for CMS Energy are:

· 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

· enterprises, consisting of various subsidiaries engaging primarily in domestic independent power production.

CMS Energy presents EnerBank, corporate interest and other expenses, and discontinued operations within other reconciling items.

Consumers

The reportable segments for Consumers are:

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

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

Consumers’ other consolidated entities are presented within other reconciling items.

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

In Millions
Years Ended December 31	2014			2013			2012
CMS Energy, including Consumers
Operating revenue
Electric utility		$	4,436		$	4,173		$	4,031
Gas utility			2,363			2,148			1,982
Enterprises			299			181			183
Other reconciling items			81			64			57
Total operating revenue – CMS Energy		$	7,179		$	6,566		$	6,253
Consumers
Operating revenue
Electric utility		$	4,436		$	4,173		$	4,031
Gas utility			2,363			2,148			1,982
Other reconciling items			1			-			-
Total operating revenue – Consumers		$	6,800		$	6,321		$	6,013
CMS Energy, including Consumers
Depreciation and amortization
Electric utility		$	522		$	484		$	459
Gas utility			156			138			133
Enterprises			4			3			4
Other reconciling items			3			3			2
Total depreciation and amortization – CMS Energy		$	685		$	628		$	598
Consumers
Depreciation and amortization
Electric utility		$	522		$	484		$	459
Gas utility			156			138			133
Total depreciation and amortization – Consumers		$	678		$	622		$	592
CMS Energy, including Consumers
Income from equity method investees1
Enterprises		$	15		$	13		$	17
Total income from equity method investees – CMS Energy		$	15		$	13		$	17
CMS Energy, including Consumers
Interest charges
Electric utility		$	181		$	179		$	179
Gas utility			67			64			63
Other reconciling items			159			155			147
Total interest charges – CMS Energy		$	407		$	398		$	389
Consumers
Interest charges
Electric utility		$	181		$	179		$	179
Gas utility			67			64			63
Other reconciling items			2			2			2
Total interest charges – Consumers		$	250		$	245		$	244

In Millions
Years Ended December 31	2014			2013			2012
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility		$	211		$	242		$	227
Gas utility			95			104			70
Enterprises			(1)			(4)			(1)
Other reconciling items			(55)			(40)			(51)
Total income tax expense – CMS Energy		$	250		$	302		$	245
Consumers
Income tax expense
Electric utility		$	211		$	242		$	227
Gas utility			95			104			70
Total income tax expense – Consumers		$	306		$	346		$	297
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility		$	384		$	363		$	325
Gas utility			179			168			110
Enterprises			(1)			2			16
Other reconciling items			(85)			(81)			(69)
Total net income available to common stockholders –    CMS Energy		$	477		$	452		$	382
Consumers
Net income available to common stockholder
Electric utility		$	384		$	363		$	325
Gas utility			179			168			110
Other reconciling items			2			1			2
Total net income available to common stockholder –    Consumers		$	565		$	532		$	437
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility		$	12,230		$	11,186		$	11,041
Gas utility			5,335			4,843			4,400
Enterprises			115			115			113
Other reconciling items			41			40			38
Total plant, property, and equipment – CMS Energy		$	17,721		$	16,184		$	15,592
Consumers
Plant, property, and equipment, gross
Electric utility		$	12,230		$	11,186		$	11,041
Gas utility			5,335			4,843			4,400
Other reconciling items			15			15			15
Total plant, property, and equipment – Consumers		$	17,580		$	16,044		$	15,456
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises		$	58		$	57		$	55
Other reconciling items			3			2			2
Total investments in equity method investees – CMS Energy		$	61		$	59		$	57

In Millions
Years Ended December 31	2014			2013			2012
CMS Energy, including Consumers
Total assets
Electric utility2		$	11,582		$	10,487		$	10,423
Gas utility2			5,391			4,784			5,016
Enterprises			231			332			181
Other reconciling items			1,981			1,813			1,511
Total assets – CMS Energy		$	19,185		$	17,416		$	17,131
Consumers
Total assets
Electric utility2		$	11,582		$	10,487		$	10,423
Gas utility2			5,391			4,784			5,016
Other reconciling items			874			908			836
Total assets – Consumers		$	17,847		$	16,179		$	16,275
CMS Energy, including Consumers
Capital expenditures3
Electric utility		$	1,139		$	996		$	921
Gas utility			473			407			340
Enterprises			3			1			1
Other reconciling items			1			4			4
Total capital expenditures – CMS Energy		$	1,616		$	1,408		$	1,266
Consumers
Capital expenditures3
Electric utility		$	1,139		$	996		$	921
Gas utility			473			407			340
Total capital expenditures – Consumers		$	1,612		$	1,403		$	1,261

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.