Reportable Segments

12 Months Ended

Dec. 31, 2011

Reportable Segments

21: 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:

Years Ended December 31	2011		2010		2009
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Operating Revenue
Electric utility	$	3,913	$	3,802	$	3,407
Gas utility		2,340		2,354		2,556
Enterprises		204		238		216
Other		46		38		26
Total Operating Revenue — CMS Energy	$	6,503	$	6,432	$	6,205
CONSUMERS
Operating Revenue
Electric utility	$	3,913	$	3,802	$	3,407
Gas utility		2,340		2,354		2,556
Total Operating Revenue — Consumers	$	6,253	$	6,156	$	5,963
CMS ENERGY, INCLUDING CONSUMERS
Depreciation and Amortization
Electric utility	$	412	$	450	$	441
Gas utility		130		122		118
Enterprises		3		3		10
Other		1		1		1
Total Depreciation and Amortization — CMS Energy	$	546	$	576	$	570
CONSUMERS
Depreciation and Amortization
Electric utility	$	412	$	450	$	441
Gas utility		130		122		118
Total Depreciation and Amortization — Consumers	$	542	$	572	$	559
CMS ENERGY, INCLUDING CONSUMERS
Income (Loss) from Equity Method Investees1
Enterprises	$	9	$	11	$	(2	)
Total Income (Loss) from Equity Method Investees — CMS Energy	$	9	$	11	$	(2	)
CMS ENERGY, INCLUDING CONSUMERS
Interest Charges
Electric utility	$	192	$	202	$	225
Gas utility		71		73		66
Enterprises		—		—		5
Other		152		156		139
Total Interest Charges — CMS Energy	$	415	$	431	$	435
CONSUMERS
Interest Charges
Electric utility	$	192	$	202	$	225
Gas utility		71		73		66
Other		2		2		1
Total Interest Charges — Consumers	$	265	$	277	$	292

	2011			2010			2009
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Income Tax Expense (Benefit)
Electric utility	$	190		$	187		$	107
Gas utility		77			67			56
Enterprises		(24	)		14			4
Other		(52	)		(44	)		(52	)
Total Income Tax Expense — CMS Energy	$	191		$	224		$	115
CONSUMERS
Income Tax Expense
Electric utility	$	190		$	187		$	107
Gas utility		77			67			56
Total Income Tax Expense — Consumers	$	267		$	254		$	163
CMS ENERGY, INCLUDING CONSUMERS
Net Income (Loss) Available to Common Stockholders
Electric utility	$	333		$	303		$	194
Gas utility		130			127			96
Enterprises		32			36			(7	)
Discontinued operations		2			(23	)		20
Other		(82	)		(119	)		(85	)
Total Net Income Available to Common Stockholders — CMS Energy	$	415		$	324		$	218
CONSUMERS
Net Income Available to Common Stockholder
Electric utility	$	333		$	303		$	194
Gas utility		130			127			96
Other		2			2			1
Total Net Income Available to Common Stockholder — Consumers	$	465		$	432		$	291
CMS ENERGY, INCLUDING CONSUMERS
Plant, Property, and Equipment, Gross
Electric utility	$	10,400		$	9,944		$	9,525
Gas utility		4,206			4,063			3,812
Enterprises		109			102			345
Other		36			36			34
Total Plant, Property, and Equipment — CMS Energy	$	14,751		$	14,145		$	13,716
CMS ENERGY, INCLUDING CONSUMERS
Investments in Equity Method Investees1
Enterprises	$	49		$	48		$	3
Other		1			1			6
Total Investments in Equity Method Investees — CMS Energy	$	50		$	49		$	9
CONSUMERS
Plant, Property, and Equipment, Gross
Electric utility	$	10,400		$	9,944		$	9,525
Gas utility		4,206			4,063			3,812
Other		15			15			15
Total Plant, Property, and Equipment — Consumers	$	14,621		$	14,022		$	13,352

	2011		2010		2009
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Total Assets
Electric utility2	$	9,938	$	9,321	$	9,157
Gas utility2		4,956		4,614		4,594
Enterprises		242		191		303
Other		1,316		1,490		1,202
Total Assets — CMS Energy	$	16,452	$	15,616	$	15,256
CONSUMERS
Total Assets
Electric utility2	$	9,938	$	9,321	$	9,157
Gas utility2		4,956		4,614		4,594
Other		768		904		871
Total Assets — Consumers	$	15,662	$	14,839	$	14,622
CMS ENERGY, INCLUDING CONSUMERS
Capital Expenditures3
Electric utility	$	661	$	642	$	557
Gas utility		261		235		270
Enterprises		5		4		7
Other		1		2		—
Total Capital Expenditures — CMS Energy	$	928	$	883	$	834
CONSUMERS
Capital Expenditures3
Electric utility	$	661	$	642	$	557
Gas utility		261		235		270
Total Capital Expenditures — Consumers	$	922	$	877	$	827

¹  Consumers had no material 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.

CMS Energy and Consumers had no international operating revenues or operating income for each of the years ended December 31, 2011, 2010, and 2009. CMS Energy had international assets of $1 million at December 31, 2011 and $3 million at December 31, 2010 and 2009. Consumers had no international assets for any of the years presented.

Consumers Energy Company [Member]

Reportable Segments

21: 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:

Years Ended December 31	2011		2010		2009
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Operating Revenue
Electric utility	$	3,913	$	3,802	$	3,407
Gas utility		2,340		2,354		2,556
Enterprises		204		238		216
Other		46		38		26
Total Operating Revenue — CMS Energy	$	6,503	$	6,432	$	6,205
CONSUMERS
Operating Revenue
Electric utility	$	3,913	$	3,802	$	3,407
Gas utility		2,340		2,354		2,556
Total Operating Revenue — Consumers	$	6,253	$	6,156	$	5,963
CMS ENERGY, INCLUDING CONSUMERS
Depreciation and Amortization
Electric utility	$	412	$	450	$	441
Gas utility		130		122		118
Enterprises		3		3		10
Other		1		1		1
Total Depreciation and Amortization — CMS Energy	$	546	$	576	$	570
CONSUMERS
Depreciation and Amortization
Electric utility	$	412	$	450	$	441
Gas utility		130		122		118
Total Depreciation and Amortization — Consumers	$	542	$	572	$	559
CMS ENERGY, INCLUDING CONSUMERS
Income (Loss) from Equity Method Investees1
Enterprises	$	9	$	11	$	(2	)
Total Income (Loss) from Equity Method Investees — CMS Energy	$	9	$	11	$	(2	)
CMS ENERGY, INCLUDING CONSUMERS
Interest Charges
Electric utility	$	192	$	202	$	225
Gas utility		71		73		66
Enterprises		—		—		5
Other		152		156		139
Total Interest Charges — CMS Energy	$	415	$	431	$	435
CONSUMERS
Interest Charges
Electric utility	$	192	$	202	$	225
Gas utility		71		73		66
Other		2		2		1
Total Interest Charges — Consumers	$	265	$	277	$	292

	2011			2010			2009
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Income Tax Expense (Benefit)
Electric utility	$	190		$	187		$	107
Gas utility		77			67			56
Enterprises		(24	)		14			4
Other		(52	)		(44	)		(52	)
Total Income Tax Expense — CMS Energy	$	191		$	224		$	115
CONSUMERS
Income Tax Expense
Electric utility	$	190		$	187		$	107
Gas utility		77			67			56
Total Income Tax Expense — Consumers	$	267		$	254		$	163
CMS ENERGY, INCLUDING CONSUMERS
Net Income (Loss) Available to Common Stockholders
Electric utility	$	333		$	303		$	194
Gas utility		130			127			96
Enterprises		32			36			(7	)
Discontinued operations		2			(23	)		20
Other		(82	)		(119	)		(85	)
Total Net Income Available to Common Stockholders — CMS Energy	$	415		$	324		$	218
CONSUMERS
Net Income Available to Common Stockholder
Electric utility	$	333		$	303		$	194
Gas utility		130			127			96
Other		2			2			1
Total Net Income Available to Common Stockholder — Consumers	$	465		$	432		$	291
CMS ENERGY, INCLUDING CONSUMERS
Plant, Property, and Equipment, Gross
Electric utility	$	10,400		$	9,944		$	9,525
Gas utility		4,206			4,063			3,812
Enterprises		109			102			345
Other		36			36			34
Total Plant, Property, and Equipment — CMS Energy	$	14,751		$	14,145		$	13,716
CMS ENERGY, INCLUDING CONSUMERS
Investments in Equity Method Investees1
Enterprises	$	49		$	48		$	3
Other		1			1			6
Total Investments in Equity Method Investees — CMS Energy	$	50		$	49		$	9
CONSUMERS
Plant, Property, and Equipment, Gross
Electric utility	$	10,400		$	9,944		$	9,525
Gas utility		4,206			4,063			3,812
Other		15			15			15
Total Plant, Property, and Equipment — Consumers	$	14,621		$	14,022		$	13,352

	2011		2010		2009
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Total Assets
Electric utility2	$	9,938	$	9,321	$	9,157
Gas utility2		4,956		4,614		4,594
Enterprises		242		191		303
Other		1,316		1,490		1,202
Total Assets — CMS Energy	$	16,452	$	15,616	$	15,256
CONSUMERS
Total Assets
Electric utility2	$	9,938	$	9,321	$	9,157
Gas utility2		4,956		4,614		4,594
Other		768		904		871
Total Assets — Consumers	$	15,662	$	14,839	$	14,622
CMS ENERGY, INCLUDING CONSUMERS
Capital Expenditures3
Electric utility	$	661	$	642	$	557
Gas utility		261		235		270
Enterprises		5		4		7
Other		1		2		—
Total Capital Expenditures — CMS Energy	$	928	$	883	$	834
CONSUMERS
Capital Expenditures3
Electric utility	$	661	$	642	$	557
Gas utility		261		235		270
Total Capital Expenditures — Consumers	$	922	$	877	$	827

¹  Consumers had no material 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.

CMS Energy and Consumers had no international operating revenues or operating income for each of the years ended December 31, 2011, 2010, and 2009. CMS Energy had international assets of $1 million at December 31, 2011 and $3 million at December 31, 2010 and 2009. Consumers had no international assets for any of the years presented.