Reportable Segments

12 Months Ended

Dec. 31, 2015

Reportable Segments

17:ReportableSegments

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, transmission, 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

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

Consumers

The reportable segments for Consumers are:

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

· 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	2015			2014			2013
CMS Energy, including Consumers
Operating revenue
Electric utility		$	4,249		$	4,436		$	4,173
Gas utility			1,916			2,363			2,148
Enterprises			190			299			181
Other reconciling items			101			81			64
Total operating revenue – CMS Energy		$	6,456		$	7,179		$	6,566
Consumers
Operating revenue
Electric utility		$	4,249		$	4,436		$	4,173
Gas utility			1,916			2,363			2,148
Other reconciling items			-			1			-
Total operating revenue – Consumers		$	6,165		$	6,800		$	6,321
CMS Energy, including Consumers
Depreciation and amortization
Electric utility		$	567		$	522		$	484
Gas utility			177			156			138
Enterprises			4			4			3
Other reconciling items			2			3			3
Total depreciation and amortization – CMS Energy		$	750		$	685		$	628
Consumers
Depreciation and amortization
Electric utility		$	567		$	522		$	484
Gas utility			177			156			138
Total depreciation and amortization – Consumers		$	744		$	678		$	622
CMS Energy, including Consumers
Income from equity method investees1
Enterprises		$	14		$	15		$	13
Total income from equity method investees – CMS Energy		$	14		$	15		$	13
CMS Energy, including Consumers
Interest charges
Electric utility		$	178		$	181		$	179
Gas utility			71			67			64
Other reconciling items			147			159			155
Total interest charges – CMS Energy		$	396		$	407		$	398
Consumers
Interest charges
Electric utility		$	178		$	181		$	179
Gas utility			71			67			64
Other reconciling items			1			2			2
Total interest charges – Consumers		$	250		$	250		$	245

In Millions
Years Ended December 31	2015			2014			2013
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility		$	224		$	211		$	242
Gas utility			78			95			104
Enterprises			3			(1)			(4)
Other reconciling items			(34)			(55)			(40)
Total income tax expense – CMS Energy		$	271		$	250		$	302
Consumers
Income tax expense
Electric utility		$	224		$	211		$	242
Gas utility			78			95			104
Total income tax expense – Consumers		$	302		$	306		$	346
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility		$	437		$	384		$	363
Gas utility			154			179			168
Enterprises			4			(1)			2
Other reconciling items			(72)			(85)			(81)
Total net income available to common stockholders –    CMS Energy		$	523		$	477		$	452
Consumers
Net income available to common stockholder
Electric utility		$	437		$	384		$	363
Gas utility			154			179			168
Other reconciling items			1			2			1
Total net income available to common stockholder –    Consumers		$	592		$	565		$	532
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility		$	13,059		$	12,230		$	11,186
Gas utility			5,723			5,335			4,843
Enterprises			120			115			115
Other reconciling items			41			41			40
Total plant, property, and equipment, gross – CMS Energy		$	18,943		$	17,721		$	16,184
Consumers
Plant, property, and equipment, gross
Electric utility		$	13,059		$	12,230		$	11,186
Gas utility			5,723			5,335			4,843
Other reconciling items			15			15			15
Total plant, property, and equipment, gross – Consumers		$	18,797		$	17,580		$	16,044
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises		$	61		$	58		$	57
Other reconciling items			3			3			2
Total investments in equity method investees – CMS Energy		$	64		$	61		$	59

In Millions
Years Ended December 31	2015			2014			2013
CMS Energy, including Consumers
Total assets
Electric utility2		$	12,676		$	11,582		$	10,487
Gas utility2			5,918			5,391			4,784
Enterprises			270			231			231
Other reconciling items			1,476			1,981			1,788
Total assets – CMS Energy		$	20,340		$	19,185		$	17,290
Consumers
Total assets
Electric utility2		$	12,676		$	11,582		$	10,487
Gas utility2			5,918			5,391			4,784
Other reconciling items			64			874			908
Total assets – Consumers		$	18,658		$	17,847		$	16,179
CMS Energy, including Consumers
Capital expenditures3
Electric utility		$	1,136		$	1,139		$	996
Gas utility			558			473			407
Enterprises			44			3			1
Other reconciling items			3			1			4
Total capital expenditures – CMS Energy		$	1,741		$	1,616		$	1,408
Consumers
Capital expenditures3
Electric utility		$	1,136		$	1,139		$	996
Gas utility			558			473			407
Total capital expenditures – Consumers		$	1,694		$	1,612		$	1,403

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:ReportableSegments

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, transmission, 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

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

Consumers

The reportable segments for Consumers are:

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

· 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	2015			2014			2013
CMS Energy, including Consumers
Operating revenue
Electric utility		$	4,249		$	4,436		$	4,173
Gas utility			1,916			2,363			2,148
Enterprises			190			299			181
Other reconciling items			101			81			64
Total operating revenue – CMS Energy		$	6,456		$	7,179		$	6,566
Consumers
Operating revenue
Electric utility		$	4,249		$	4,436		$	4,173
Gas utility			1,916			2,363			2,148
Other reconciling items			-			1			-
Total operating revenue – Consumers		$	6,165		$	6,800		$	6,321
CMS Energy, including Consumers
Depreciation and amortization
Electric utility		$	567		$	522		$	484
Gas utility			177			156			138
Enterprises			4			4			3
Other reconciling items			2			3			3
Total depreciation and amortization – CMS Energy		$	750		$	685		$	628
Consumers
Depreciation and amortization
Electric utility		$	567		$	522		$	484
Gas utility			177			156			138
Total depreciation and amortization – Consumers		$	744		$	678		$	622
CMS Energy, including Consumers
Income from equity method investees1
Enterprises		$	14		$	15		$	13
Total income from equity method investees – CMS Energy		$	14		$	15		$	13
CMS Energy, including Consumers
Interest charges
Electric utility		$	178		$	181		$	179
Gas utility			71			67			64
Other reconciling items			147			159			155
Total interest charges – CMS Energy		$	396		$	407		$	398
Consumers
Interest charges
Electric utility		$	178		$	181		$	179
Gas utility			71			67			64
Other reconciling items			1			2			2
Total interest charges – Consumers		$	250		$	250		$	245

In Millions
Years Ended December 31	2015			2014			2013
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility		$	224		$	211		$	242
Gas utility			78			95			104
Enterprises			3			(1)			(4)
Other reconciling items			(34)			(55)			(40)
Total income tax expense – CMS Energy		$	271		$	250		$	302
Consumers
Income tax expense
Electric utility		$	224		$	211		$	242
Gas utility			78			95			104
Total income tax expense – Consumers		$	302		$	306		$	346
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility		$	437		$	384		$	363
Gas utility			154			179			168
Enterprises			4			(1)			2
Other reconciling items			(72)			(85)			(81)
Total net income available to common stockholders –    CMS Energy		$	523		$	477		$	452
Consumers
Net income available to common stockholder
Electric utility		$	437		$	384		$	363
Gas utility			154			179			168
Other reconciling items			1			2			1
Total net income available to common stockholder –    Consumers		$	592		$	565		$	532
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility		$	13,059		$	12,230		$	11,186
Gas utility			5,723			5,335			4,843
Enterprises			120			115			115
Other reconciling items			41			41			40
Total plant, property, and equipment, gross – CMS Energy		$	18,943		$	17,721		$	16,184
Consumers
Plant, property, and equipment, gross
Electric utility		$	13,059		$	12,230		$	11,186
Gas utility			5,723			5,335			4,843
Other reconciling items			15			15			15
Total plant, property, and equipment, gross – Consumers		$	18,797		$	17,580		$	16,044
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises		$	61		$	58		$	57
Other reconciling items			3			3			2
Total investments in equity method investees – CMS Energy		$	64		$	61		$	59

In Millions
Years Ended December 31	2015			2014			2013
CMS Energy, including Consumers
Total assets
Electric utility2		$	12,676		$	11,582		$	10,487
Gas utility2			5,918			5,391			4,784
Enterprises			270			231			231
Other reconciling items			1,476			1,981			1,788
Total assets – CMS Energy		$	20,340		$	19,185		$	17,290
Consumers
Total assets
Electric utility2		$	12,676		$	11,582		$	10,487
Gas utility2			5,918			5,391			4,784
Other reconciling items			64			874			908
Total assets – Consumers		$	18,658		$	17,847		$	16,179
CMS Energy, including Consumers
Capital expenditures3
Electric utility		$	1,136		$	1,139		$	996
Gas utility			558			473			407
Enterprises			44			3			1
Other reconciling items			3			1			4
Total capital expenditures – CMS Energy		$	1,741		$	1,616		$	1,408
Consumers
Capital expenditures3
Electric utility		$	1,136		$	1,139		$	996
Gas utility			558			473			407
Total capital expenditures – Consumers		$	1,694		$	1,612		$	1,403

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.