Reportable Segments

12 Months Ended

Dec. 31, 2013

Reportable Segments

16: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.  The reportable segments for CMS Energy and Consumers are:

CMS Energy:

· electric utility, consisting of regulated activities associated with the generation 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 primarily in domestic independent power production; and

· other, including EnerBank, corporate interest and other expenses, and discontinued operations.

Consumers:

· electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan;

· gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan; and

· other, including a consolidated special-purpose entity for the sale of accounts receivable.

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 operation 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.

Presented in the following tables is financial information by reportable segment:

In Millions
Years Ended December 31	2013			2012			2011
CMS Energy, including Consumers
Operating revenue
Electric utility		$	4,173		$	4,031		$	3,913
Gas utility			2,148			1,982			2,340
Enterprises			181			183			204
Other			64			57			46
Total operating revenue – CMS Energy		$	6,566		$	6,253		$	6,503
Consumers
Operating revenue
Electric utility		$	4,173		$	4,031		$	3,913
Gas utility			2,148			1,982			2,340
Total operating revenue – Consumers		$	6,321		$	6,013		$	6,253
CMS Energy, including Consumers
Depreciation and amortization
Electric utility		$	484		$	459		$	412
Gas utility			138			133			130
Enterprises			3			4			3
Other			3			2			1
Total depreciation and amortization – CMS Energy		$	628		$	598		$	546
Consumers
Depreciation and amortization
Electric utility		$	484		$	459		$	412
Gas utility			138			133			130
Total depreciation and amortization – Consumers		$	622		$	592		$	542
CMS Energy, including Consumers
Income from equity method investees1
Enterprises		$	13		$	17		$	9
Total income from equity method investees – CMS Energy		$	13		$	17		$	9
CMS Energy, including Consumers
Interest charges
Electric utility		$	179		$	179		$	192
Gas utility			64			63			71
Other			155			147			152
Total interest charges – CMS Energy		$	398		$	389		$	415
Consumers
Interest charges
Electric utility		$	179		$	179		$	192
Gas utility			64			63			71
Other			2			2			2
Total interest charges – Consumers		$	245		$	244		$	265

In Millions
Years Ended December 31	2013			2012			2011
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility		$	242		$	227		$	190
Gas utility			104			70			77
Enterprises			(4)			(1)			(24)
Other			(40)			(51)			(52)
Total income tax expense – CMS Energy		$	302		$	245		$	191
Consumers
Income tax expense
Electric utility		$	242		$	227		$	190
Gas utility			104			70			77
Total income tax expense – Consumers		$	346		$	297		$	267
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility		$	363		$	325		$	333
Gas utility			168			110			130
Enterprises			2			16			32
Other			(81)			(69)			(80)
Total net income available to common stockholders –    CMS Energy		$	452		$	382		$	415
Consumers
Net income available to common stockholder
Electric utility		$	363		$	325		$	333
Gas utility			168			110			130
Other			1			2			2
Total net income available to common stockholder –    Consumers		$	532		$	437		$	465
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility		$	11,186		$	11,041		$	10,400
Gas utility			4,843			4,400			4,206
Enterprises			115			113			109
Other			40			38			36
Total plant, property, and equipment – CMS Energy		$	16,184		$	15,592		$	14,751
Consumers
Plant, property, and equipment, gross
Electric utility		$	11,186		$	11,041		$	10,400
Gas utility			4,843			4,400			4,206
Other			15			15			15
Total plant, property, and equipment – Consumers		$	16,044		$	15,456		$	14,621
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises		$	57		$	55		$	49
Other			2			2			1
Total investments in equity method investees – CMS Energy		$	59		$	57		$	50

In Millions
Years Ended December 31	2013			2012			2011
CMS Energy, including Consumers
Total assets
Electric utility2		$	10,487		$	10,423		$	9,938
Gas utility2			4,784			5,016			4,956
Enterprises			332			181			242
Other			1,813			1,511			1,316
Total assets – CMS Energy		$	17,416		$	17,131		$	16,452
Consumers
Total assets
Electric utility2		$	10,487		$	10,423		$	9,938
Gas utility2			4,784			5,016			4,956
Other			908			836			768
Total assets – Consumers		$	16,179		$	16,275		$	15,662
CMS Energy, including Consumers
Capital expenditures3
Electric utility		$	996		$	921		$	661
Gas utility			407			340			261
Enterprises			1			1			5
Other			4			4			1
Total capital expenditures – CMS Energy		$	1,408		$	1,266		$	928
Consumers
Capital expenditures3
Electric utility		$	996		$	921		$	661
Gas utility			407			340			261
Total capital expenditures – Consumers		$	1,403		$	1,261		$	922

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 [Member]

Reportable Segments

16: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.  The reportable segments for CMS Energy and Consumers are:

CMS Energy:

· electric utility, consisting of regulated activities associated with the generation 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 primarily in domestic independent power production; and

· other, including EnerBank, corporate interest and other expenses, and discontinued operations.

Consumers:

· electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan;

· gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan; and

· other, including a consolidated special-purpose entity for the sale of accounts receivable.

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 operation 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.

Presented in the following tables is financial information by reportable segment:

In Millions
Years Ended December 31	2013			2012			2011
CMS Energy, including Consumers
Operating revenue
Electric utility		$	4,173		$	4,031		$	3,913
Gas utility			2,148			1,982			2,340
Enterprises			181			183			204
Other			64			57			46
Total operating revenue – CMS Energy		$	6,566		$	6,253		$	6,503
Consumers
Operating revenue
Electric utility		$	4,173		$	4,031		$	3,913
Gas utility			2,148			1,982			2,340
Total operating revenue – Consumers		$	6,321		$	6,013		$	6,253
CMS Energy, including Consumers
Depreciation and amortization
Electric utility		$	484		$	459		$	412
Gas utility			138			133			130
Enterprises			3			4			3
Other			3			2			1
Total depreciation and amortization – CMS Energy		$	628		$	598		$	546
Consumers
Depreciation and amortization
Electric utility		$	484		$	459		$	412
Gas utility			138			133			130
Total depreciation and amortization – Consumers		$	622		$	592		$	542
CMS Energy, including Consumers
Income from equity method investees1
Enterprises		$	13		$	17		$	9
Total income from equity method investees – CMS Energy		$	13		$	17		$	9
CMS Energy, including Consumers
Interest charges
Electric utility		$	179		$	179		$	192
Gas utility			64			63			71
Other			155			147			152
Total interest charges – CMS Energy		$	398		$	389		$	415
Consumers
Interest charges
Electric utility		$	179		$	179		$	192
Gas utility			64			63			71
Other			2			2			2
Total interest charges – Consumers		$	245		$	244		$	265

In Millions
Years Ended December 31	2013			2012			2011
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility		$	242		$	227		$	190
Gas utility			104			70			77
Enterprises			(4)			(1)			(24)
Other			(40)			(51)			(52)
Total income tax expense – CMS Energy		$	302		$	245		$	191
Consumers
Income tax expense
Electric utility		$	242		$	227		$	190
Gas utility			104			70			77
Total income tax expense – Consumers		$	346		$	297		$	267
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility		$	363		$	325		$	333
Gas utility			168			110			130
Enterprises			2			16			32
Other			(81)			(69)			(80)
Total net income available to common stockholders –    CMS Energy		$	452		$	382		$	415
Consumers
Net income available to common stockholder
Electric utility		$	363		$	325		$	333
Gas utility			168			110			130
Other			1			2			2
Total net income available to common stockholder –    Consumers		$	532		$	437		$	465
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility		$	11,186		$	11,041		$	10,400
Gas utility			4,843			4,400			4,206
Enterprises			115			113			109
Other			40			38			36
Total plant, property, and equipment – CMS Energy		$	16,184		$	15,592		$	14,751
Consumers
Plant, property, and equipment, gross
Electric utility		$	11,186		$	11,041		$	10,400
Gas utility			4,843			4,400			4,206
Other			15			15			15
Total plant, property, and equipment – Consumers		$	16,044		$	15,456		$	14,621
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises		$	57		$	55		$	49
Other			2			2			1
Total investments in equity method investees – CMS Energy		$	59		$	57		$	50

In Millions
Years Ended December 31	2013			2012			2011
CMS Energy, including Consumers
Total assets
Electric utility2		$	10,487		$	10,423		$	9,938
Gas utility2			4,784			5,016			4,956
Enterprises			332			181			242
Other			1,813			1,511			1,316
Total assets – CMS Energy		$	17,416		$	17,131		$	16,452
Consumers
Total assets
Electric utility2		$	10,487		$	10,423		$	9,938
Gas utility2			4,784			5,016			4,956
Other			908			836			768
Total assets – Consumers		$	16,179		$	16,275		$	15,662
CMS Energy, including Consumers
Capital expenditures3
Electric utility		$	996		$	921		$	661
Gas utility			407			340			261
Enterprises			1			1			5
Other			4			4			1
Total capital expenditures – CMS Energy		$	1,408		$	1,266		$	928
Consumers
Capital expenditures3
Electric utility		$	996		$	921		$	661
Gas utility			407			340			261
Total capital expenditures – Consumers		$	1,403		$	1,261		$	922

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.