Reportable Segments

12 Months Ended

Dec. 31, 2017

18: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.

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 operating 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 in domestic independent power production, the marketing of independent power production, and the development of renewable generation

CMS Energy presents EnerBank, corporate interest and other expenses, and Consumers’ other consolidated entities 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	2017			2016			2015
CMS Energy, including Consumers
Operating revenue
Electric utility		$	4,448		$	4,379		$	4,249
Gas utility			1,774			1,685			1,916
Enterprises			229			215			190
Other reconciling items			132			120			101
Total operating revenue – CMS Energy		$	6,583		$	6,399		$	6,456
Consumers
Operating revenue
Electric utility		$	4,448		$	4,379		$	4,249
Gas utility			1,774			1,685			1,916
Total operating revenue – Consumers		$	6,222		$	6,064		$	6,165
CMS Energy, including Consumers
Depreciation and amortization
Electric utility		$	654		$	603		$	567
Gas utility			218			200			177
Enterprises			6			5			4
Other reconciling items			3			3			2
Total depreciation and amortization – CMS Energy		$	881		$	811		$	750
Consumers
Depreciation and amortization
Electric utility		$	654		$	603		$	567
Gas utility			218			200			177
Total depreciation and amortization – Consumers		$	872		$	803		$	744
CMS Energy, including Consumers
Income from equity method investees1
Enterprises		$	15		$	13		$	14
Total income from equity method investees – CMS Energy		$	15		$	13		$	14
CMS Energy, including Consumers
Interest charges
Electric utility		$	201		$	196		$	178
Gas utility			74			72			71
Enterprises			-			1			-
Other reconciling items			163			166			147
Total interest charges – CMS Energy		$	438		$	435		$	396
Consumers
Interest charges
Electric utility		$	201		$	196		$	178
Gas utility			74			72			71
Other reconciling items			1			-			1
Total interest charges – Consumers		$	276		$	268		$	250



In Millions
Years Ended December 31	2017			2016			2015
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility		$	245		$	246		$	224
Gas utility			96			74			78
Enterprises			72			10			3
Other reconciling items			11			(57)			(34)
Total income tax expense – CMS Energy		$	424		$	273		$	271
Consumers
Income tax expense (benefit)
Electric utility		$	245		$	246		$	224
Gas utility			96			74			78
Other reconciling items			(2)			-			-
Total income tax expense – Consumers		$	339		$	320		$	302
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility		$	455		$	458		$	437
Gas utility			173			155			154
Enterprises			(27)			17			4
Other reconciling items			(141)			(79)			(72)
Total net income available to common stockholders – CMS Energy		$	460		$	551		$	523
Consumers
Net income available to common stockholder
Electric utility		$	455		$	458		$	437
Gas utility			173			155			154
Other reconciling items			2			1			1
Total net income available to common stockholder – Consumers		$	630		$	614		$	592
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2		$	15,221		$	14,540		$	13,059
Gas utility2			7,080			6,283			5,723
Enterprises			167			157			120
Other reconciling items			38			30			41
Total plant, property, and equipment, gross – CMS Energy		$	22,506		$	21,010		$	18,943
Consumers
Plant, property, and equipment, gross
Electric utility2		$	15,221		$	14,540		$	13,059
Gas utility2			7,080			6,283			5,723
Other reconciling items			17			15			15
Total plant, property, and equipment, gross – Consumers		$	22,318		$	20,838		$	18,797
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises		$	64		$	62		$	61
Other reconciling items			-			3			3
Total investments in equity method investees – CMS Energy		$	64		$	65		$	64



In Millions
Years Ended December 31	2017			2016			2015
CMS Energy, including Consumers
Total assets
Electric utility2		$	13,906		$	13,429		$	12,660
Gas utility2			7,139			6,446			5,912
Enterprises			342			269			270
Other reconciling items			1,663			1,478			1,457
Total assets – CMS Energy		$	23,050		$	21,622		$	20,299
Consumers
Total assets
Electric utility2		$	13,907		$	13,430		$	12,660
Gas utility2			7,139			6,446			5,912
Other reconciling items			53			70			63
Total assets – Consumers		$	21,099		$	19,946		$	18,635
CMS Energy, including Consumers
Capital expenditures3
Electric utility		$	882		$	1,007		$	1,136
Gas utility			800			611			558
Enterprises			33			10			44
Other reconciling items			7			5			3
Total capital expenditures – CMS Energy		$	1,722		$	1,633		$	1,741
Consumers
Capital expenditures3
Electric utility		$	882		$	1,007		$	1,136
Gas utility			800			611			558
Other reconciling items			1			-			-
Total capital expenditures – Consumers		$	1,683		$	1,618		$	1,694

1Consumers had no significant equity method investments.

2Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.

3Amounts 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:Reportable Segments

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 in domestic independent power production, the marketing of independent power production, and the development of renewable generation

CMS Energy presents EnerBank, corporate interest and other expenses, and Consumers’ other consolidated entities 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	2017			2016			2015
CMS Energy, including Consumers
Operating revenue
Electric utility		$	4,448		$	4,379		$	4,249
Gas utility			1,774			1,685			1,916
Enterprises			229			215			190
Other reconciling items			132			120			101
Total operating revenue – CMS Energy		$	6,583		$	6,399		$	6,456
Consumers
Operating revenue
Electric utility		$	4,448		$	4,379		$	4,249
Gas utility			1,774			1,685			1,916
Total operating revenue – Consumers		$	6,222		$	6,064		$	6,165
CMS Energy, including Consumers
Depreciation and amortization
Electric utility		$	654		$	603		$	567
Gas utility			218			200			177
Enterprises			6			5			4
Other reconciling items			3			3			2
Total depreciation and amortization – CMS Energy		$	881		$	811		$	750
Consumers
Depreciation and amortization
Electric utility		$	654		$	603		$	567
Gas utility			218			200			177
Total depreciation and amortization – Consumers		$	872		$	803		$	744
CMS Energy, including Consumers
Income from equity method investees1
Enterprises		$	15		$	13		$	14
Total income from equity method investees – CMS Energy		$	15		$	13		$	14
CMS Energy, including Consumers
Interest charges
Electric utility		$	201		$	196		$	178
Gas utility			74			72			71
Enterprises			-			1			-
Other reconciling items			163			166			147
Total interest charges – CMS Energy		$	438		$	435		$	396
Consumers
Interest charges
Electric utility		$	201		$	196		$	178
Gas utility			74			72			71
Other reconciling items			1			-			1
Total interest charges – Consumers		$	276		$	268		$	250



In Millions
Years Ended December 31	2017			2016			2015
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility		$	245		$	246		$	224
Gas utility			96			74			78
Enterprises			72			10			3
Other reconciling items			11			(57)			(34)
Total income tax expense – CMS Energy		$	424		$	273		$	271
Consumers
Income tax expense (benefit)
Electric utility		$	245		$	246		$	224
Gas utility			96			74			78
Other reconciling items			(2)			-			-
Total income tax expense – Consumers		$	339		$	320		$	302
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility		$	455		$	458		$	437
Gas utility			173			155			154
Enterprises			(27)			17			4
Other reconciling items			(141)			(79)			(72)
Total net income available to common stockholders – CMS Energy		$	460		$	551		$	523
Consumers
Net income available to common stockholder
Electric utility		$	455		$	458		$	437
Gas utility			173			155			154
Other reconciling items			2			1			1
Total net income available to common stockholder – Consumers		$	630		$	614		$	592
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2		$	15,221		$	14,540		$	13,059
Gas utility2			7,080			6,283			5,723
Enterprises			167			157			120
Other reconciling items			38			30			41
Total plant, property, and equipment, gross – CMS Energy		$	22,506		$	21,010		$	18,943
Consumers
Plant, property, and equipment, gross
Electric utility2		$	15,221		$	14,540		$	13,059
Gas utility2			7,080			6,283			5,723
Other reconciling items			17			15			15
Total plant, property, and equipment, gross – Consumers		$	22,318		$	20,838		$	18,797
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises		$	64		$	62		$	61
Other reconciling items			-			3			3
Total investments in equity method investees – CMS Energy		$	64		$	65		$	64



In Millions
Years Ended December 31	2017			2016			2015
CMS Energy, including Consumers
Total assets
Electric utility2		$	13,906		$	13,429		$	12,660
Gas utility2			7,139			6,446			5,912
Enterprises			342			269			270
Other reconciling items			1,663			1,478			1,457
Total assets – CMS Energy		$	23,050		$	21,622		$	20,299
Consumers
Total assets
Electric utility2		$	13,907		$	13,430		$	12,660
Gas utility2			7,139			6,446			5,912
Other reconciling items			53			70			63
Total assets – Consumers		$	21,099		$	19,946		$	18,635
CMS Energy, including Consumers
Capital expenditures3
Electric utility		$	882		$	1,007		$	1,136
Gas utility			800			611			558
Enterprises			33			10			44
Other reconciling items			7			5			3
Total capital expenditures – CMS Energy		$	1,722		$	1,633		$	1,741
Consumers
Capital expenditures3
Electric utility		$	882		$	1,007		$	1,136
Gas utility			800			611			558
Other reconciling items			1			-			-
Total capital expenditures – Consumers		$	1,683		$	1,618		$	1,694

1Consumers had no significant equity method investments.

2Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.