Notes Receivable

6 Months Ended

Jun. 30, 2015

Notes Receivable [Abstract]

Notes Receivable

7:NOTES RECEIVABLE

Presented in the following table are details of CMS Energy’s current and non‑current notes receivable:

In Millions
	June 30, 2015			December 31, 2014
CMS Energy
Current
EnerBank notes receivable, net of allowance for loan losses		$	113		$	97
EnerBank notes receivable held for sale			-			41
Other			1			1
Non-current
EnerBank notes receivable, net of allowance for loan losses			877			800
Total notes receivable		$	991		$	939

EnerBank notes receivable are unsecured consumer installment loans for financing home improvements.  EnerBank records its notes receivable at cost, less allowance for loan losses.  In May 2015, EnerBank completed a sale of notes receivable, receiving proceeds of $48 million and recording an insignificant gain.

The allowance for loan losses is a valuation allowance to reflect estimated credit losses.  The allowance is increased by the provision for loan losses and decreased by loan charge-offs net of recoveries.  Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors.  Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due.

Loans that are 30 days or more past due are considered delinquent.  The balance of EnerBank’s delinquent consumer loans was $5 million at June 30, 2015 and December 31, 2014.

At June 30, 2015 and December 31, 2014, $1 million of EnerBank’s loans had been modified as troubled debt restructurings.