Asset Sales And Discontinued Operations

12 Months Ended

Dec. 31, 2013

Asset Sales And Discontinued Operations

19:ASSET SALES AND DISCONTINUED OPERATIONS

Asset Sales

The impacts of asset sales are included in income from discontinued operations on CMS Energy’s consolidated statements of income.  CMS Energy had no significant asset sales during the years ended December 31, 2013 or 2012.  In 2011, CMS Energy sold its interest in Exeter Energy Limited Partnership, which had been written down to fair value in 2010.  Consumers had no significant asset sales during the years ended December 31, 2013, 2012, or 2011.

Discontinued Operations

CMS Energy included the following amounts in income from discontinued operations:

In Millions
Years Ended December 31	2012				2011
Discontinued operations
Pretax income from discontinued operations		$	11			$	2
Income tax expense			4				-
Income from discontinued operations, net of tax expense		$	7	1		$	2	2

¹ Includes an $11 million ($7 million net of tax) reversal of a loss on disposal due to the elimination of a liability associated with the 2003 sale of Panhandle.

² Includes an operating gain of $3 million related to a litigation settlement at CMS Viron.

Discontinued operations include a provision for closing costs and a portion of CMS Energy’s parent company interest expense.  CMS Energy allocated no interest expense in 2013 or 2012 and allocated less than $1 million of interest expense in 2011.  CMS Energy allocates its interest expense by applying its total interest expense to the net carrying amount of the asset sold divided by CMS Energy’s total capitalization.

Consumers Energy Company [Member]

Asset Sales And Discontinued Operations

19:ASSET SALES AND DISCONTINUED OPERATIONS

Asset Sales

The impacts of asset sales are included in income from discontinued operations on CMS Energy’s consolidated statements of income.  CMS Energy had no significant asset sales during the years ended December 31, 2013 or 2012.  In 2011, CMS Energy sold its interest in Exeter Energy Limited Partnership, which had been written down to fair value in 2010.  Consumers had no significant asset sales during the years ended December 31, 2013, 2012, or 2011.

Discontinued Operations

CMS Energy included the following amounts in income from discontinued operations:

In Millions
Years Ended December 31	2012				2011
Discontinued operations
Pretax income from discontinued operations		$	11			$	2
Income tax expense			4				-
Income from discontinued operations, net of tax expense		$	7	1		$	2	2

¹ Includes an $11 million ($7 million net of tax) reversal of a loss on disposal due to the elimination of a liability associated with the 2003 sale of Panhandle.

² Includes an operating gain of $3 million related to a litigation settlement at CMS Viron.

Discontinued operations include a provision for closing costs and a portion of CMS Energy’s parent company interest expense.  CMS Energy allocated no interest expense in 2013 or 2012 and allocated less than $1 million of interest expense in 2011.  CMS Energy allocates its interest expense by applying its total interest expense to the net carrying amount of the asset sold divided by CMS Energy’s total capitalization.