Reportable Segments

12 Months Ended

Dec. 31, 2016

Reportable Segments

18: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	2016			2015			2014
CMS Energy, including Consumers
Operating revenue
Electric utility		$	4,379		$	4,249		$	4,436
Gas utility			1,685			1,916			2,363
Enterprises			215			190			299
Other reconciling items			120			101			81
Total operating revenue – CMS Energy		$	6,399		$	6,456		$	7,179
Consumers
Operating revenue
Electric utility		$	4,379		$	4,249		$	4,436
Gas utility			1,685			1,916			2,363
Other reconciling items			-			-			1
Total operating revenue – Consumers		$	6,064		$	6,165		$	6,800
CMS Energy, including Consumers
Depreciation and amortization
Electric utility		$	603		$	567		$	522
Gas utility			200			177			156
Enterprises			5			4			4
Other reconciling items			3			2			3
Total depreciation and amortization – CMS Energy		$	811		$	750		$	685
Consumers
Depreciation and amortization
Electric utility		$	603		$	567		$	522
Gas utility			200			177			156
Total depreciation and amortization – Consumers		$	803		$	744		$	678
CMS Energy, including Consumers
Income from equity method investees1
Enterprises		$	13		$	14		$	15
Total income from equity method investees – CMS Energy		$	13		$	14		$	15
CMS Energy, including Consumers
Interest charges
Electric utility		$	196		$	178		$	181
Gas utility			72			71			67
Enterprises			1			-			-
Other reconciling items			166			147			159
Total interest charges – CMS Energy		$	435		$	396		$	407
Consumers
Interest charges
Electric utility		$	196		$	178		$	181
Gas utility			72			71			67
Other reconciling items			-			1			2
Total interest charges – Consumers		$	268		$	250		$	250

In Millions
Years Ended December 31	2016			2015			2014
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility		$	246		$	224		$	211
Gas utility			74			78			95
Enterprises			10			3			(1)
Other reconciling items			(57)			(34)			(55)
Total income tax expense – CMS Energy		$	273		$	271		$	250
Consumers
Income tax expense
Electric utility		$	246		$	224		$	211
Gas utility			74			78			95
Total income tax expense – Consumers		$	320		$	302		$	306
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility		$	458		$	437		$	384
Gas utility			155			154			179
Enterprises			17			4			(1)
Other reconciling items			(79)			(72)			(85)
Total net income available to common stockholders –    CMS Energy		$	551		$	523		$	477
Consumers
Net income available to common stockholder
Electric utility		$	458		$	437		$	384
Gas utility			155			154			179
Other reconciling items			1			1			2
Total net income available to common stockholder –    Consumers		$	614		$	592		$	565
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility		$	14,540		$	13,059		$	12,230
Gas utility			6,283			5,723			5,335
Enterprises			157			120			115
Other reconciling items			30			41			41
Total plant, property, and equipment, gross – CMS Energy		$	21,010		$	18,943		$	17,721
Consumers
Plant, property, and equipment, gross
Electric utility		$	14,540		$	13,059		$	12,230
Gas utility			6,283			5,723			5,335
Other reconciling items			15			15			15
Total plant, property, and equipment, gross – Consumers		$	20,838		$	18,797		$	17,580
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises		$	62		$	61		$	58
Other reconciling items			3			3			3
Total investments in equity method investees – CMS Energy		$	65		$	64		$	61

In Millions
Years Ended December 31	2016			2015			2014
CMS Energy, including Consumers
Total assets
Electric utility2		$	13,429		$	12,660		$	11,565
Gas utility2			6,446			5,912			5,385
Enterprises			269			270			231
Other reconciling items			1,478			1,457			1,962
Total assets – CMS Energy		$	21,622		$	20,299		$	19,143
Consumers
Total assets
Electric utility2		$	13,430		$	12,660		$	11,565
Gas utility2			6,446			5,912			5,385
Other reconciling items			70			63			874
Total assets – Consumers		$	19,946		$	18,635		$	17,824
CMS Energy, including Consumers
Capital expenditures3
Electric utility		$	1,007		$	1,136		$	1,139
Gas utility			611			558			473
Enterprises			10			44			3
Other reconciling items			5			3			1
Total capital expenditures – CMS Energy		$	1,633		$	1,741		$	1,616
Consumers
Capital expenditures3
Electric utility		$	1,007		$	1,136		$	1,139
Gas utility			611			558			473
Total capital expenditures – Consumers		$	1,618		$	1,694		$	1,612

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

18: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	2016			2015			2014
CMS Energy, including Consumers
Operating revenue
Electric utility		$	4,379		$	4,249		$	4,436
Gas utility			1,685			1,916			2,363
Enterprises			215			190			299
Other reconciling items			120			101			81
Total operating revenue – CMS Energy		$	6,399		$	6,456		$	7,179
Consumers
Operating revenue
Electric utility		$	4,379		$	4,249		$	4,436
Gas utility			1,685			1,916			2,363
Other reconciling items			-			-			1
Total operating revenue – Consumers		$	6,064		$	6,165		$	6,800
CMS Energy, including Consumers
Depreciation and amortization
Electric utility		$	603		$	567		$	522
Gas utility			200			177			156
Enterprises			5			4			4
Other reconciling items			3			2			3
Total depreciation and amortization – CMS Energy		$	811		$	750		$	685
Consumers
Depreciation and amortization
Electric utility		$	603		$	567		$	522
Gas utility			200			177			156
Total depreciation and amortization – Consumers		$	803		$	744		$	678
CMS Energy, including Consumers
Income from equity method investees1
Enterprises		$	13		$	14		$	15
Total income from equity method investees – CMS Energy		$	13		$	14		$	15
CMS Energy, including Consumers
Interest charges
Electric utility		$	196		$	178		$	181
Gas utility			72			71			67
Enterprises			1			-			-
Other reconciling items			166			147			159
Total interest charges – CMS Energy		$	435		$	396		$	407
Consumers
Interest charges
Electric utility		$	196		$	178		$	181
Gas utility			72			71			67
Other reconciling items			-			1			2
Total interest charges – Consumers		$	268		$	250		$	250

In Millions
Years Ended December 31	2016			2015			2014
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility		$	246		$	224		$	211
Gas utility			74			78			95
Enterprises			10			3			(1)
Other reconciling items			(57)			(34)			(55)
Total income tax expense – CMS Energy		$	273		$	271		$	250
Consumers
Income tax expense
Electric utility		$	246		$	224		$	211
Gas utility			74			78			95
Total income tax expense – Consumers		$	320		$	302		$	306
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility		$	458		$	437		$	384
Gas utility			155			154			179
Enterprises			17			4			(1)
Other reconciling items			(79)			(72)			(85)
Total net income available to common stockholders –    CMS Energy		$	551		$	523		$	477
Consumers
Net income available to common stockholder
Electric utility		$	458		$	437		$	384
Gas utility			155			154			179
Other reconciling items			1			1			2
Total net income available to common stockholder –    Consumers		$	614		$	592		$	565
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility		$	14,540		$	13,059		$	12,230
Gas utility			6,283			5,723			5,335
Enterprises			157			120			115
Other reconciling items			30			41			41
Total plant, property, and equipment, gross – CMS Energy		$	21,010		$	18,943		$	17,721
Consumers
Plant, property, and equipment, gross
Electric utility		$	14,540		$	13,059		$	12,230
Gas utility			6,283			5,723			5,335
Other reconciling items			15			15			15
Total plant, property, and equipment, gross – Consumers		$	20,838		$	18,797		$	17,580
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises		$	62		$	61		$	58
Other reconciling items			3			3			3
Total investments in equity method investees – CMS Energy		$	65		$	64		$	61

In Millions
Years Ended December 31	2016			2015			2014
CMS Energy, including Consumers
Total assets
Electric utility2		$	13,429		$	12,660		$	11,565
Gas utility2			6,446			5,912			5,385
Enterprises			269			270			231
Other reconciling items			1,478			1,457			1,962
Total assets – CMS Energy		$	21,622		$	20,299		$	19,143
Consumers
Total assets
Electric utility2		$	13,430		$	12,660		$	11,565
Gas utility2			6,446			5,912			5,385
Other reconciling items			70			63			874
Total assets – Consumers		$	19,946		$	18,635		$	17,824
CMS Energy, including Consumers
Capital expenditures3
Electric utility		$	1,007		$	1,136		$	1,139
Gas utility			611			558			473
Enterprises			10			44			3
Other reconciling items			5			3			1
Total capital expenditures – CMS Energy		$	1,633		$	1,741		$	1,616
Consumers
Capital expenditures3
Electric utility		$	1,007		$	1,136		$	1,139
Gas utility			611			558			473
Total capital expenditures – Consumers		$	1,618		$	1,694		$	1,612

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.