XML 99 R99.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Income from continuing operations before income taxes $ 604,000,000 $ 587,000,000.0 $ 324,000,000.0
Income from continuing operataions before income taxes 606,000,000 590,000,000 335,000,000
Income tax expense at statutory rate 211,000,000 205,000,000 114,000,000
MCIT law change, net of federal benefit (32,000,000) [1]    
State and local income taxes, net of federal benefit 21,000,000 26,000,000 21,000,000
Income tax credit amortization (4,000,000) (4,000,000) (4,000,000)
Medicare Part D exempt income (6,000,000) [2] (6,000,000) [2] (6,000,000) [2]
Plant basis differences (1,000,000) 2,000,000 1,000,000
Tax credits, net (1,000,000) (3,000,000) (9,000,000)
Valuation allowance 1,000,000 1,000,000 2,000,000
Other, net 2,000,000 3,000,000 (4,000,000)
Income Tax Expense 191,000,000 224,000,000 115,000,000
Effective income tax rate 31.60% 38.20% 35.50%
Deferred tax liabilities (2,045,000,000) (1,858,000,000)  
Expense Reversal on Previous Benefit from the Medicare Subsidy   3,000,000  
Consumers Energy Company [Member]
     
Income from continuing operataions before income taxes 734,000,000 688,000,000 456,000,000
Income tax expense at statutory rate 257,000,000 241,000,000 160,000,000
State and local income taxes, net of federal benefit 24,000,000 26,000,000 19,000,000
Income tax credit amortization (4,000,000) (4,000,000) (4,000,000)
Medicare Part D exempt income (6,000,000) (9,000,000) (6,000,000)
Plant basis differences (1,000,000) 2,000,000 1,000,000
Tax credits, net (1,000,000) (3,000,000) (7,000,000)
Other, net (2,000,000) 1,000,000  
Income Tax Expense 267,000,000 254,000,000 163,000,000
Effective income tax rate 36.40% 36.90% 35.70%
Recognition of regulatory asset related to law change 2,467,000,000 2,112,000,000  
Deferred tax liabilities (2,151,000,000) (1,986,000,000)  
Medicare Part D [Member] | Consumers Energy Company [Member]
     
Recognition of regulatory asset related to law change 98,000,000    
State Jurisdiction [Member]
     
MCIT rate 6.00%    
Deferred tax liabilities 32,000,000    
State Jurisdiction [Member] | Consumers Energy Company [Member]
     
MCIT rate 6.00%    
Reversal of net deferred tax assets related to MCIT law change 128,000,000    
Recognition of regulatory asset related to law change $ 128,000,000    
[1] CMS Energy's effective tax rate for the year ended December 31, 2011 was reduced due to a one-time non-cash reduction in tax expense resulting from a change in Michigan tax law. In May 2011, Michigan enacted the MCIT, effective January 1, 2012. The MCIT, a simplified six percent corporate income tax, will replace the MBT, which is a complex multi-part business tax. Both the MBT and the MCIT are income taxes for financial reporting purposes, for which deferred income tax assets and liabilities are recorded. CMS Energy and Consumers remeasured their Michigan deferred income tax assets and liabilities at June 30, 2011 to reflect this change in law. Unlike the MBT, the MCIT does not allow future tax deductions to offset the book-tax differences that existed upon enactment of the tax. Due primarily to the elimination of these future tax deductions, Consumers has eliminated $128 million of net deferred tax assets associated with its utility book-tax temporary differences, recognizing a $128 million regulatory asset (not including the effects of income tax gross-ups), and in addition to the amounts related to Consumers, CMS Energy eliminated $32 million of net deferred tax liabilities associated with its non-utility book-tax temporary differences, recognizing a $32 million deferred income tax benefit.
[2] For the year ended December 31, 2010, CMS Energy recognized deferred tax expense of $3 million to reflect the enactment of the Health Care Acts. The law change prospectively repealed the tax deduction for the portion of the health care costs reimbursed by the Medicare Part D subsidy for taxable years beginning after December 31, 2012. Consumers has recorded a regulatory asset of $98 million at December 31, 2011 to reflect the expected recovery of additional future income taxes.