Reportable Segments

12 Months Ended

Dec. 31, 2018

Segment Reporting Information [Line Items]

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, purchase, transmission, distribution, and sale of electricity in Michigan


•	gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan


•	enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production.

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, purchase, transmission, distribution, and sale of electricity in Michigan


•	gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale 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	2018			2017			2016
CMS Energy, including Consumers
Operating revenue
Electric utility		$	4,561		$	4,448		$	4,379
Gas utility		1,903			1,774			1,685
Enterprises		252			229			215
Other reconciling items		157			132			120
Total operating revenue – CMS Energy		$	6,873		$	6,583		$	6,399
Consumers
Operating revenue
Electric utility		$	4,561		$	4,448		$	4,379
Gas utility		1,903			1,774			1,685
Total operating revenue – Consumers		$	6,464		$	6,222		$	6,064
CMS Energy, including Consumers
Depreciation and amortization
Electric utility		$	682		$	654		$	603
Gas utility		239			218			200
Enterprises		8			6			5
Other reconciling items		4			3			3
Total depreciation and amortization – CMS Energy		$	933		$	881		$	811



In Millions
Years Ended December 31	2018				2017				2016
Consumers
Depreciation and amortization
Electric utility		$	682			$	654			$	603
Gas utility		239				218				200
Total depreciation and amortization – Consumers		$	921			$	872			$	803
CMS Energy, including Consumers
Income from equity method investees¹
Enterprises		$	9			$	15			$	13
Total income from equity method investees – CMS Energy		$	9			$	15			$	13
CMS Energy, including Consumers
Interest charges
Electric utility		$	209			$	201			$	196
Gas utility		79				74				72
Enterprises		2				—				1
Other reconciling items		168				163				166
Total interest charges – CMS Energy		$	458			$	438			$	435
Consumers
Interest charges
Electric utility		$	209			$	201			$	196
Gas utility		79				74				72
Other reconciling items		1				1				—
Total interest charges – Consumers		$	289			$	276			$	268
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility		$	109			$	245			$	246
Gas utility		33				96				74
Enterprises		2				72				10
Other reconciling items		(29		)		11				(57		)
Total income tax expense – CMS Energy		$	115			$	424			$	273
Consumers
Income tax expense (benefit)
Electric utility		$	109			$	245			$	246
Gas utility		33				96				74
Other reconciling items		—				(2		)		—
Total income tax expense – Consumers		$	142			$	339			$	320
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility		$	535			$	455			$	458
Gas utility		169				173				155
Enterprises		34				(27		)		17
Other reconciling items		(81		)		(141		)		(79		)
Total net income available to common stockholders – CMS Energy		$	657			$	460			$	551



In Millions
Years Ended December 31	2018				2017			2016
Consumers
Net income available to common stockholder
Electric utility		$	535			$	455		$	458
Gas utility		169				173			155
Other reconciling items		(1		)		2			1
Total net income available to common stockholder – Consumers		$	703			$	630		$	614
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility²		$	16,027			$	15,221		$	14,540
Gas utility²		7,919				7,080			6,283
Enterprises		412				167			157
Other reconciling items		42				38			30
Total plant, property, and equipment, gross – CMS Energy		$	24,400			$	22,506		$	21,010
Consumers
Plant, property, and equipment, gross
Electric utility²		$	16,027			$	15,221		$	14,540
Gas utility²		7,919				7,080			6,283
Other reconciling items		17				17			15
Total plant, property, and equipment, gross – Consumers		$	23,963			$	22,318		$	20,838
CMS Energy, including Consumers
Investments in equity method investees¹
Enterprises		$	69			$	64		$	62
Other reconciling items		—				—			3
Total investments in equity method investees – CMS Energy		$	69			$	64		$	65
CMS Energy, including Consumers
Total assets
Electric utility²		$	14,079			$	13,906		$	13,429
Gas utility²		7,806				7,139			6,446
Enterprises		540				342			269
Other reconciling items		2,104				1,663			1,478
Total assets – CMS Energy		$	24,529			$	23,050		$	21,622
Consumers
Total assets
Electric utility²		$	14,143			$	13,907		$	13,430
Gas utility²		7,853				7,139			6,446
Other reconciling items		29				53			70
Total assets – Consumers		$	22,025			$	21,099		$	19,946
CMS Energy, including Consumers
Capital expenditures³
Electric utility		$	865			$	882		$	1,007
Gas utility		958				800			611
Enterprises		246				33			10
Other reconciling items		12				7			5
Total capital expenditures – CMS Energy		$	2,081			$	1,722		$	1,633



In Millions
Years Ended December 31	2018			2017			2016
Consumers
Capital expenditures³
Electric utility		$	865		$	882		$	1,007
Gas utility		958			800			611
Other reconciling items		2			1			—
Total capital expenditures – Consumers		$	1,825		$	1,683		$	1,618


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