Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule Of Effective Income Tax Rate Reconciliation

In Millions, Except Tax Rate
Years Ended December 31	2015				2014				2013
CMS Energy, including Consumers
Income from continuing operations before income taxes		$	796			$	729			$	756
Income tax expense at statutory rate			279				255				265
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect			39				36				37
Accelerated flow-through of regulatory tax benefits			(39)				(39)				-
Other, net			(8)				(2)				-
Income tax expense		$	271			$	250			$	302
Effective tax rate			34.0	%			34.3	%			39.9	%
Consumers
Income from continuing operations before income taxes		$	896			$	873			$	880
Income tax expense at statutory rate			314				306				308
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect			42				42				43
Accelerated flow-through of regulatory tax benefits			(39)				(39)				-
Other, net			(15)				(3)				(5)
Income tax expense		$	302			$	306			$	346
Effective tax rate			33.7	%			35.1	%			39.3	%

Significant Components Of Income Tax Expense Table

In Millions
Years Ended December 31	2015			2014			2013
CMS Energy, including Consumers
Current income taxes
Federal		$	-		$	-		$	-
State and local			24			24			34
		$	24		$	24		$	34
Deferred income taxes
Federal		$	192		$	198		$	248
State and local			36			31			23
		$	228		$	229		$	271
Deferred income tax credit			19			(3)			(3)
Tax expense		$	271		$	250		$	302
Consumers
Current income taxes
Federal		$	66		$	8		$	137
State and local			32			36			45
		$	98		$	44		$	182
Deferred income taxes
Federal		$	153		$	236		$	147
State and local			32			29			20
		$	185		$	265		$	167
Deferred income tax credit			19			(3)			(3)
Tax expense		$	302		$	306		$	346

Principal Components Of Deferred Income Tax Assets Table

In Millions
December 31	2015			2014
CMS Energy, including Consumers
Employee benefits		$	(127)		$	(72)
Gas inventory			(96)			(117)
Plant, property, and equipment			(2,429)			(2,217)
Net regulatory tax liability			50			65
Reserves and accruals			59			63
Securitized costs			(122)			(144)
Tax loss and credit carryforwards			657			676
Other			(5)			-
		$	(2,013)		$	(1,746)
Less valuation allowance			(4)			(2)
Total net deferred income tax liabilities		$	(2,017)		$	(1,748)
Deferred tax assets, net of valuation reserves		$	762		$	802
Deferred tax liabilities			(2,779)			(2,550)
Total net deferred income tax liabilities		$	(2,017)		$	(1,748)
Consumers
Employee benefits		$	(156)		$	(103)
Gas inventory			(96)			(117)
Plant, property, and equipment			(2,457)			(2,263)
Net regulatory tax liability			50			65
Reserves and accruals			30			34
Securitized costs			(122)			(144)
Tax loss and credit carryforwards			46			45
Other			(5)			(2)
		$	(2,710)		$	(2,485)
Less valuation allowance			-			(1)
Total net deferred income tax liabilities		$	(2,710)		$	(2,486)
Deferred tax assets, net of valuation reserves		$	126		$	143
Deferred tax liabilities			(2,836)			(2,629)
Total net deferred income tax liabilities		$	(2,710)		$	(2,486)

Loss And Credit Carryforwards Table

In Millions
	Gross Amount			Tax Attribute			Expiration
CMS Energy, including Consumers
Federal net operating loss carryforward		$	885		$	311	2025 – 2034
Local net operating loss carryforwards			414			4	2023 – 2034
Alternative minimum tax credits			270			270	No expiration
Charitable contribution carryover			2			1	2016 – 2019
General business credits			71			71	2018 – 2035
Total tax attributes					$	657
Consumers
Federal net operating loss carryforward		$	121		$	42	2025 – 2034
Charitable contribution carryover			2			1	2016 – 2019
General business credits			3			3	2032 – 2035
Total tax attributes					$	46

Reconciliation Of Beginning And Ending Uncertain Tax Benefits Table

In Millions
Years Ended December 31	2015			2014			2013
CMS Energy, including Consumers
Balance at beginning of period		$	5		$	4		$	1
Additions for current-year tax positions			1			2			-
Additions for prior-year tax positions			1			1			3
Reductions for prior-year tax positions			(1)			(2)			-
Balance at end of period		$	6		$	5		$	4
Consumers
Balance at beginning of period		$	5		$	4		$	1
Additions for current-year tax positions			1			2			-
Additions for prior-year tax positions			1			1			3
Reductions for prior-year tax positions			(1)			(2)			-
Balance at end of period		$	6		$	5		$	4

Consumers Energy Company [Member]

Schedule Of Effective Income Tax Rate Reconciliation

In Millions, Except Tax Rate
Years Ended December 31	2015				2014				2013
CMS Energy, including Consumers
Income from continuing operations before income taxes		$	796			$	729			$	756
Income tax expense at statutory rate			279				255				265
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect			39				36				37
Accelerated flow-through of regulatory tax benefits			(39)				(39)				-
Other, net			(8)				(2)				-
Income tax expense		$	271			$	250			$	302
Effective tax rate			34.0	%			34.3	%			39.9	%
Consumers
Income from continuing operations before income taxes		$	896			$	873			$	880
Income tax expense at statutory rate			314				306				308
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect			42				42				43
Accelerated flow-through of regulatory tax benefits			(39)				(39)				-
Other, net			(15)				(3)				(5)
Income tax expense		$	302			$	306			$	346
Effective tax rate			33.7	%			35.1	%			39.3	%

Significant Components Of Income Tax Expense Table

In Millions
Years Ended December 31	2015			2014			2013
CMS Energy, including Consumers
Current income taxes
Federal		$	-		$	-		$	-
State and local			24			24			34
		$	24		$	24		$	34
Deferred income taxes
Federal		$	192		$	198		$	248
State and local			36			31			23
		$	228		$	229		$	271
Deferred income tax credit			19			(3)			(3)
Tax expense		$	271		$	250		$	302
Consumers
Current income taxes
Federal		$	66		$	8		$	137
State and local			32			36			45
		$	98		$	44		$	182
Deferred income taxes
Federal		$	153		$	236		$	147
State and local			32			29			20
		$	185		$	265		$	167
Deferred income tax credit			19			(3)			(3)
Tax expense		$	302		$	306		$	346

Principal Components Of Deferred Income Tax Assets Table

In Millions
December 31	2015			2014
CMS Energy, including Consumers
Employee benefits		$	(127)		$	(72)
Gas inventory			(96)			(117)
Plant, property, and equipment			(2,429)			(2,217)
Net regulatory tax liability			50			65
Reserves and accruals			59			63
Securitized costs			(122)			(144)
Tax loss and credit carryforwards			657			676
Other			(5)			-
		$	(2,013)		$	(1,746)
Less valuation allowance			(4)			(2)
Total net deferred income tax liabilities		$	(2,017)		$	(1,748)
Deferred tax assets, net of valuation reserves		$	762		$	802
Deferred tax liabilities			(2,779)			(2,550)
Total net deferred income tax liabilities		$	(2,017)		$	(1,748)
Consumers
Employee benefits		$	(156)		$	(103)
Gas inventory			(96)			(117)
Plant, property, and equipment			(2,457)			(2,263)
Net regulatory tax liability			50			65
Reserves and accruals			30			34
Securitized costs			(122)			(144)
Tax loss and credit carryforwards			46			45
Other			(5)			(2)
		$	(2,710)		$	(2,485)
Less valuation allowance			-			(1)
Total net deferred income tax liabilities		$	(2,710)		$	(2,486)
Deferred tax assets, net of valuation reserves		$	126		$	143
Deferred tax liabilities			(2,836)			(2,629)
Total net deferred income tax liabilities		$	(2,710)		$	(2,486)

Loss And Credit Carryforwards Table

In Millions
	Gross Amount			Tax Attribute			Expiration
CMS Energy, including Consumers
Federal net operating loss carryforward		$	885		$	311	2025 – 2034
Local net operating loss carryforwards			414			4	2023 – 2034
Alternative minimum tax credits			270			270	No expiration
Charitable contribution carryover			2			1	2016 – 2019
General business credits			71			71	2018 – 2035
Total tax attributes					$	657
Consumers
Federal net operating loss carryforward		$	121		$	42	2025 – 2034
Charitable contribution carryover			2			1	2016 – 2019
General business credits			3			3	2032 – 2035
Total tax attributes					$	46

Reconciliation Of Beginning And Ending Uncertain Tax Benefits Table

In Millions
Years Ended December 31	2015			2014			2013
CMS Energy, including Consumers
Balance at beginning of period		$	5		$	4		$	1
Additions for current-year tax positions			1			2			-
Additions for prior-year tax positions			1			1			3
Reductions for prior-year tax positions			(1)			(2)			-
Balance at end of period		$	6		$	5		$	4
Consumers
Balance at beginning of period		$	5		$	4		$	1
Additions for current-year tax positions			1			2			-
Additions for prior-year tax positions			1			1			3
Reductions for prior-year tax positions			(1)			(2)			-
Balance at end of period		$	6		$	5		$	4