Financial Instruments

6 Months Ended

Jun. 30, 2020

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

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
	June 30, 2020															December 31, 2019
				Fair Value															Fair Value
	Carrying						Level									Carrying						Level
	Amount			Total			1			2			3			Amount			Total			1			2			3
CMS Energy, including Consumers
Assets
Long-term receivables¹		$	19		$	19		$	—		$	—		$	19		$	20		$	20		$	—		$	—		$	20
Notes receivable²		2,597			2,896			—			—			2,896			2,500			2,652			—			—			2,652
Securities held to maturity		29			29			—			29			—			26			26			—			26			—
Liabilities
Long-term debt³		15,139			17,154			1,150			14,290			1,714			13,062			14,185			1,197			11,048			1,940
Long-term payables⁴		31			32			—			—			32			30			32			—			—			32
Consumers
Assets
Long-term receivables¹		$	19		$	19		$	—		$	—		$	19		$	20		$	20		$	—		$	—		$	20
Notes receivable – related party⁵		103			103			—			—			103			103			103			—			—			103
Liabilities
Long-term debt⁶		8,404			9,912			—			8,198			1,714			7,250			8,010			—			6,070			1,940


¹	Includes current portion of long-term accounts receivable of $12 million at June 30, 2020 and $13 million at December 31, 2019.


²	Includes current portion of notes receivable of $264 million at June 30, 2020 and $242 million at December 31, 2019. For further details, see Note 7, Notes Receivable.


³	Includes current portion of long‑term debt of $1.7 billion at June 30, 2020 and $1.1 billion at December 31, 2019.


⁴	Includes current portion of long‑term payables of $6 million at June 30, 2020 and $1 million at December 31, 2019.


⁵	Includes current portion of notes receivable – related party of $7 million at June 30, 2020 and December 31, 2019. For further details, see Note 7, Notes Receivable.


⁶	Includes current portion of long‑term debt of $537 million at June 30, 2020 and $202 million at December 31, 2019.

The effects of third‑party credit enhancements were excluded from the fair value measurements of long‑term debt. The principal amount of CMS Energy’s long‑term debt supported by third‑party credit enhancements was $35 million at June 30, 2020 and December 31, 2019. The entirety of these amounts was at Consumers.

Debt securities classified as held to maturity consisted primarily of mortgage‑backed securities and Utah Housing Corporation bonds held by EnerBank. Presented in the following table are these investment securities:



In Millions
	June 30, 2020												December 31, 2019
	Cost			Unrealized Gains			Unrealized Losses			Fair Value			Cost			Unrealized Gains			Unrealized Losses			Fair Value
CMS Energy
Debt securities		$	29		$	—		$	—		$	29		$	26		$	—		$	—		$	26

Consumers Energy Company

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Financial Instruments



In Millions
	June 30, 2020															December 31, 2019
				Fair Value															Fair Value
	Carrying						Level									Carrying						Level
	Amount			Total			1			2			3			Amount			Total			1			2			3
CMS Energy, including Consumers
Assets
Long-term receivables¹		$	19		$	19		$	—		$	—		$	19		$	20		$	20		$	—		$	—		$	20
Notes receivable²		2,597			2,896			—			—			2,896			2,500			2,652			—			—			2,652
Securities held to maturity		29			29			—			29			—			26			26			—			26			—
Liabilities
Long-term debt³		15,139			17,154			1,150			14,290			1,714			13,062			14,185			1,197			11,048			1,940
Long-term payables⁴		31			32			—			—			32			30			32			—			—			32
Consumers
Assets
Long-term receivables¹		$	19		$	19		$	—		$	—		$	19		$	20		$	20		$	—		$	—		$	20
Notes receivable – related party⁵		103			103			—			—			103			103			103			—			—			103
Liabilities
Long-term debt⁶		8,404			9,912			—			8,198			1,714			7,250			8,010			—			6,070			1,940


¹	Includes current portion of long-term accounts receivable of $12 million at June 30, 2020 and $13 million at December 31, 2019.


²	Includes current portion of notes receivable of $264 million at June 30, 2020 and $242 million at December 31, 2019. For further details, see Note 7, Notes Receivable.


³	Includes current portion of long‑term debt of $1.7 billion at June 30, 2020 and $1.1 billion at December 31, 2019.


⁴	Includes current portion of long‑term payables of $6 million at June 30, 2020 and $1 million at December 31, 2019.


⁵	Includes current portion of notes receivable – related party of $7 million at June 30, 2020 and December 31, 2019. For further details, see Note 7, Notes Receivable.


⁶	Includes current portion of long‑term debt of $537 million at June 30, 2020 and $202 million at December 31, 2019.



In Millions
	June 30, 2020												December 31, 2019
	Cost			Unrealized Gains			Unrealized Losses			Fair Value			Cost			Unrealized Gains			Unrealized Losses			Fair Value
CMS Energy
Debt securities		$	29		$	—		$	—		$	29		$	26		$	—		$	—		$	26