Financial Instruments

12 Months Ended

Dec. 31, 2020

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 6, Fair Value Measurements.


In Millions
	December 31, 2020															December 31, 2019
	Carrying Amount			Fair Value												Carrying Amount			Fair Value
				Total			Level												Total			Level
							1			2			3									1			2			3
CMS Energy, including Consumers
Assets
Long-term receivables1		$	17		$	17		$	—		$	—		$	17		$	20		$	20		$	—		$	—		$	20
Notes receivable2		2,887			3,248			—			—			3,248			2,500			2,652			—			—			2,652
Securities held to maturity3		28			29			—			29			—			26			26			—			26			—
Liabilities
Long-term debt4		15,120			17,512			1,249			14,178			2,085			13,062			14,185			1,197			11,048			1,940
Long-term payables5		33			35			—			—			35			30			32			—			—			32
Consumers
Assets
Long-term receivables1		$	17		$	17		$	—		$	—		$	17		$	20		$	20		$	—		$	—		$	20

Notes receivable – related party6		107			107			—			—			107			103			103			—			—			103
Liabilities
Long-term debt7		8,106			9,801			—			7,716			2,085			7,250			8,010			—			6,070			1,940

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

2Includes current portion of notes receivable of $275 million at December 31, 2020 and $242 million at December 31, 2019. For further details, see Note 8, Notes Receivable.

3These investment securities consist primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank. There were $1 million of unrealized gains in 2020 and no unrealized gains or losses in 2019.

4Includes current portion of long-term debt of $1.5 billion at December 31, 2020 and $1.1 billion at December 31, 2019.

5Includes current portion of long-term payables of $6 million at December 31, 2020 and $1 million at December 31, 2019.

6Includes current portion of notes receivable – related party of $7 million at December 31, 2020 and 2019. For further details on this note receivable, see Note 8, Notes Receivable.

7Includes current portion of long-term debt of $364 million at December 31, 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 December 31, 2019. The entirety of this amount was at Consumers.

DB SERP Securities: In 2018, CMS Energy and Consumers sold available-for-sale investment securities held within the DB SERP, receiving proceeds of $142 million, $103 million of which was related to Consumers.

Consumers Energy Company

Financial Instruments [Line Items]