Reportable Segments

6 Months Ended

Jun. 30, 2016

Reportable Segments

11: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.

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
	Three Months Ended						Six Months Ended
June 30	2016			2015			2016			2015
CMS Energy, including Consumers
Operating revenue
Electric utility		$	1,022		$	1,007		$	2,035		$	2,040
Gas utility			271			274			981			1,269
Enterprises			49			45			97			105
Other reconciling items			29			24			59			47
Total operating revenue – CMS Energy		$	1,371		$	1,350		$	3,172		$	3,461
Consumers
Operating revenue
Electric utility		$	1,022		$	1,007		$	2,035		$	2,040
Gas utility			271			274			981			1,269
Total operating revenue – Consumers		$	1,293		$	1,281		$	3,016		$	3,309
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility		$	113		$	82		$	204		$	176
Gas utility			18			1			99			122
Enterprises			3			-			9			7
Other reconciling items			(10)			(16)			(24)			(36)
Total net income available to common stockholders – CMS Energy		$	124		$	67		$	288		$	269
Consumers
Net income available to common stockholder
Electric utility		$	113		$	82		$	204		$	176
Gas utility			18			1			99			122
Total net income available to common stockholder – Consumers		$	131		$	83		$	303		$	298

In Millions
	June 30, 2016			December 31, 2015
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1		$	14,297		$	13,059
Gas utility1			6,014			5,723
Enterprises			160			120
Other reconciling items			26			41
Total plant, property, and equipment, gross – CMS Energy		$	20,497		$	18,943
Consumers
Plant, property, and equipment, gross
Electric utility1		$	14,297		$	13,059
Gas utility1			6,014			5,723
Other reconciling items			15			15
Total plant, property, and equipment, gross – Consumers		$	20,326		$	18,797
CMS Energy, including Consumers
Total assets
Electric utility1		$	12,901		$	12,660
Gas utility1			5,744			5,912
Enterprises			267			270
Other reconciling items			1,551			1,457
Total assets – CMS Energy2		$	20,463		$	20,299
Consumers
Total assets
Electric utility1		$	12,902		$	12,660
Gas utility1			5,744			5,912
Other reconciling items			56			63
Total assets – Consumers2		$	18,702		$	18,635

¹ Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.

² CMS Energy and Consumers changed the reporting of debt issuance costs on their consolidated balance sheets in accordance with ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, as of January 1, 2016, and retrospectively adjusted prior-period amounts for comparability. For further details on the implementation of this standard, see Note 1, New Accounting Standards.

Consumers Energy Company [Member]

Reportable Segments

11: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.

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
	Three Months Ended						Six Months Ended
June 30	2016			2015			2016			2015
CMS Energy, including Consumers
Operating revenue
Electric utility		$	1,022		$	1,007		$	2,035		$	2,040
Gas utility			271			274			981			1,269
Enterprises			49			45			97			105
Other reconciling items			29			24			59			47
Total operating revenue – CMS Energy		$	1,371		$	1,350		$	3,172		$	3,461
Consumers
Operating revenue
Electric utility		$	1,022		$	1,007		$	2,035		$	2,040
Gas utility			271			274			981			1,269
Total operating revenue – Consumers		$	1,293		$	1,281		$	3,016		$	3,309
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility		$	113		$	82		$	204		$	176
Gas utility			18			1			99			122
Enterprises			3			-			9			7
Other reconciling items			(10)			(16)			(24)			(36)
Total net income available to common stockholders – CMS Energy		$	124		$	67		$	288		$	269
Consumers
Net income available to common stockholder
Electric utility		$	113		$	82		$	204		$	176
Gas utility			18			1			99			122
Total net income available to common stockholder – Consumers		$	131		$	83		$	303		$	298

In Millions
	June 30, 2016			December 31, 2015
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1		$	14,297		$	13,059
Gas utility1			6,014			5,723
Enterprises			160			120
Other reconciling items			26			41
Total plant, property, and equipment, gross – CMS Energy		$	20,497		$	18,943
Consumers
Plant, property, and equipment, gross
Electric utility1		$	14,297		$	13,059
Gas utility1			6,014			5,723
Other reconciling items			15			15
Total plant, property, and equipment, gross – Consumers		$	20,326		$	18,797
CMS Energy, including Consumers
Total assets
Electric utility1		$	12,901		$	12,660
Gas utility1			5,744			5,912
Enterprises			267			270
Other reconciling items			1,551			1,457
Total assets – CMS Energy2		$	20,463		$	20,299
Consumers
Total assets
Electric utility1		$	12,902		$	12,660
Gas utility1			5,744			5,912
Other reconciling items			56			63
Total assets – Consumers2		$	18,702		$	18,635

¹ Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.

² CMS Energy and Consumers changed the reporting of debt issuance costs on their consolidated balance sheets in accordance with ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, as of January 1, 2016, and retrospectively adjusted prior-period amounts for comparability. For further details on the implementation of this standard, see Note 1, New Accounting Standards.