XML 34 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
Financial Instruments
9 Months Ended
Sep. 30, 2017
Financial Instruments

6:Financial Instruments

Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Millions  



September 30, 2017

 

December 31, 2016

 



 

Fair Value

 

 

Fair Value

 



Carrying 

 

 

 

Level

 

Carrying 

 

 

 

Level

 



Amount 

Total 

 

Amount 

Total 

 

CMS Energy, including Consumers

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term
   receivables1

 

$

22 

 

$

22 

 

$

 -

 

$

 -

 

$

22 

 

 

$

22 

 

$

22 

 

$

 -

 

$

 -

 

$

22 

 

Notes
   receivable2

 

 

1,382 

 

 

1,479 

 

 

 -

 

 

 -

 

 

1,479 

 

 

 

1,326 

 

 

1,415 

 

 

 -

 

 

 -

 

 

1,415 

 

Securities held
   to maturity

 

 

16 

 

 

16 

 

 

 -

 

 

16 

 

 

 -

 

 

 

13 

 

 

13 

 

 

 -

 

 

13 

 

 

 -

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term
   debt3

 

 

9,983 

 

 

10,484 

 

 

 -

 

 

9,331 

 

 

1,153 

 

 

 

9,504 

 

 

9,953 

 

 

 -

 

 

8,990 

 

 

963 

 

Long-term
   payables4

 

 

18 

 

 

18 

 

 

 -

 

 

 -

 

 

18 

 

 

 

17 

 

 

17 

 

 

 -

 

 

 -

 

 

17 

 

Consumers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term
   receivables1

 

$

22 

 

$

22 

 

$

 -

 

$

 -

 

$

22 

 

 

$

22 

 

$

22 

 

$

 -

 

$

 -

 

$

22 

 

Notes
   receivable5

 

 

46 

 

 

46 

 

 

 -

 

 

 -

 

 

46 

 

 

 

45 

 

 

45 

 

 

 -

 

 

 -

 

 

45 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term
   debt6

 

 

5,718 

 

 

6,032 

 

 

 -

 

 

4,879 

 

 

1,153 

 

 

 

5,628 

 

 

5,903 

 

 

 -

 

 

4,940 

 

 

963 

 



1Includes current accounts receivable of $14 million at September 30, 2017 and $12 million at December 31, 2016.

2Includes current portion of notes receivable of $228 million at September 30, 2017 and $219 million at December 31, 2016.

3Includes current portion of long-term debt of $959 million at September 30, 2017 and $864 million at December 31, 2016.

4Includes current portion of long-term payables of $1 million at September 30, 2017 and December 31, 2016.

5Includes current portion of notes receivable of $30 million at September 30, 2017 and $29 million at December 31, 2016.

6Includes current portion of long-term debt of $443 million at September 30, 2017 and $375 million at December 31, 2016.

At CMS Energy, notes receivable consist primarily of EnerBank’s fixed-rate installment loans. EnerBank estimates the fair value of these loans using a discounted cash flows technique that incorporates market interest rates as well as assumptions about the remaining life of the loans and credit risk.

CMS Energy and Consumers estimate the fair value of their long-term debt using quoted prices from market trades of the debt, if available. In the absence of quoted prices, CMS Energy and Consumers calculate market yields and prices for the debt using a matrix method that incorporates market data for similarly rated debt. Depending on the information available, other valuation techniques and models may be used that rely on assumptions that cannot be observed or confirmed through market transactions.

The effects of third-party credit enhancements are excluded from the fair value measurements of long-term debt. At September 30, 2017 and December 31, 2016, CMS Energy’s long-term debt included $103 million principal amount that was supported by third-party credit enhancements. This entire principal amount was at Consumers.

Presented in the following table are CMS Energy’s and Consumers’ investment securities classified as available for sale or held to maturity:



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Millions  



September 30, 2017

 

December 31, 2016

 



 

Unrealized 

Unrealized 

Fair 

 

 

Unrealized 

Unrealized 

Fair 

 



Cost 

Gains 

Losses 

Value 

 

Cost 

Gains 

Losses 

Value 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DB SERP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

$

142 

 

$

 

$

 -

 

$

145 

 

 

$

141 

 

$

 -

 

$

 -

 

$

141 

 

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities

 

 

16 

 

 

 -

 

 

 -

 

 

16 

 

 

 

13 

 

 

 -

 

 

 -

 

 

13 

 

Consumers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DB SERP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

$

103 

 

$

 

$

 -

 

$

105 

 

 

$

102 

 

$

 -

 

$

 -

 

$

102 

 

CMS Energy
   common stock

 

 

 

 

19 

 

 

 -

 

 

21 

 

 

 

 

 

29 

 

 

 -

 

 

33 

 



The mutual funds classified as available for sale hold primarily fixed-income instruments of varying maturities. Debt securities classified as held to maturity consist primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank.

Consumers Energy Company [Member]  
Financial Instruments

6:Financial Instruments

Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Millions  



September 30, 2017

 

December 31, 2016

 



 

Fair Value

 

 

Fair Value

 



Carrying 

 

 

 

Level

 

Carrying 

 

 

 

Level

 



Amount 

Total 

 

Amount 

Total 

 

CMS Energy, including Consumers

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term
   receivables1

 

$

22 

 

$

22 

 

$

 -

 

$

 -

 

$

22 

 

 

$

22 

 

$

22 

 

$

 -

 

$

 -

 

$

22 

 

Notes
   receivable2

 

 

1,382 

 

 

1,479 

 

 

 -

 

 

 -

 

 

1,479 

 

 

 

1,326 

 

 

1,415 

 

 

 -

 

 

 -

 

 

1,415 

 

Securities held
   to maturity

 

 

16 

 

 

16 

 

 

 -

 

 

16 

 

 

 -

 

 

 

13 

 

 

13 

 

 

 -

 

 

13 

 

 

 -

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term
   debt3

 

 

9,983 

 

 

10,484 

 

 

 -

 

 

9,331 

 

 

1,153 

 

 

 

9,504 

 

 

9,953 

 

 

 -

 

 

8,990 

 

 

963 

 

Long-term
   payables4

 

 

18 

 

 

18 

 

 

 -

 

 

 -

 

 

18 

 

 

 

17 

 

 

17 

 

 

 -

 

 

 -

 

 

17 

 

Consumers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term
   receivables1

 

$

22 

 

$

22 

 

$

 -

 

$

 -

 

$

22 

 

 

$

22 

 

$

22 

 

$

 -

 

$

 -

 

$

22 

 

Notes
   receivable5

 

 

46 

 

 

46 

 

 

 -

 

 

 -

 

 

46 

 

 

 

45 

 

 

45 

 

 

 -

 

 

 -

 

 

45 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term
   debt6

 

 

5,718 

 

 

6,032 

 

 

 -

 

 

4,879 

 

 

1,153 

 

 

 

5,628 

 

 

5,903 

 

 

 -

 

 

4,940 

 

 

963 

 



1Includes current accounts receivable of $14 million at September 30, 2017 and $12 million at December 31, 2016.

2Includes current portion of notes receivable of $228 million at September 30, 2017 and $219 million at December 31, 2016.

3Includes current portion of long-term debt of $959 million at September 30, 2017 and $864 million at December 31, 2016.

4Includes current portion of long-term payables of $1 million at September 30, 2017 and December 31, 2016.

5Includes current portion of notes receivable of $30 million at September 30, 2017 and $29 million at December 31, 2016.

6Includes current portion of long-term debt of $443 million at September 30, 2017 and $375 million at December 31, 2016.

At CMS Energy, notes receivable consist primarily of EnerBank’s fixed-rate installment loans. EnerBank estimates the fair value of these loans using a discounted cash flows technique that incorporates market interest rates as well as assumptions about the remaining life of the loans and credit risk.

CMS Energy and Consumers estimate the fair value of their long-term debt using quoted prices from market trades of the debt, if available. In the absence of quoted prices, CMS Energy and Consumers calculate market yields and prices for the debt using a matrix method that incorporates market data for similarly rated debt. Depending on the information available, other valuation techniques and models may be used that rely on assumptions that cannot be observed or confirmed through market transactions.

The effects of third-party credit enhancements are excluded from the fair value measurements of long-term debt. At September 30, 2017 and December 31, 2016, CMS Energy’s long-term debt included $103 million principal amount that was supported by third-party credit enhancements. This entire principal amount was at Consumers.

Presented in the following table are CMS Energy’s and Consumers’ investment securities classified as available for sale or held to maturity:



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Millions  



September 30, 2017

 

December 31, 2016

 



 

Unrealized 

Unrealized 

Fair 

 

 

Unrealized 

Unrealized 

Fair 

 



Cost 

Gains 

Losses 

Value 

 

Cost 

Gains 

Losses 

Value 

 

CMS Energy, including Consumers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DB SERP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

$

142 

 

$

 

$

 -

 

$

145 

 

 

$

141 

 

$

 -

 

$

 -

 

$

141 

 

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities

 

 

16 

 

 

 -

 

 

 -

 

 

16 

 

 

 

13 

 

 

 -

 

 

 -

 

 

13 

 

Consumers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DB SERP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

$

103 

 

$

 

$

 -

 

$

105 

 

 

$

102 

 

$

 -

 

$

 -

 

$

102 

 

CMS Energy
   common stock

 

 

 

 

19 

 

 

 -

 

 

21 

 

 

 

 

 

29 

 

 

 -

 

 

33 

 



The mutual funds classified as available for sale hold primarily fixed-income instruments of varying maturities. Debt securities classified as held to maturity consist primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank.