XML 43 R26.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value (Tables)
 3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
The following table presents assets and liabilities for DTE Energy measured and recorded at fair value on a recurring basis:
 
March 31, 2018
 
December 31, 2017
 
Level
1
 
Level
2
 
Level
3
 
Other(a)
 
Netting(b)
 
Net Balance
 
Level
1
 
Level
2
 
Level
3
 
Other(a)
 
Netting(b)
 
Net Balance
 
(In millions)
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents(c)
$
16

 
$
—

 
$
—

 
$
—

 
$
—

 
$
16

 
$
16

 
$
3

 
$
—

 
$
—

 
$
—

 
$
19

Nuclear decommissioning trusts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
933

 
—

 
—

 
—

 
—

 
933

 
978

 
—

 
—

 
—

 
—

 
978

Fixed income securities
14

 
516

 
—

 
—

 
—

 
530

 
18

 
477

 
—

 
—

 
—

 
495

Private equity securities
—

 
—

 
—

 
5

 
—

 
5

 
—

 
—

 
—

 
5

 
—

 
5

Cash equivalents
13

 
—

 
—

 
—

 
—

 
13

 
14

 
—

 
—

 
—

 
—

 
14

Other investments(d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
117

 
—

 
—

 
—

 
—

 
117

 
118

 
—

 
—

 
—

 
—

 
118

Fixed income securities
70

 
—

 
—

 
—

 
—

 
70

 
72

 
—

 
—

 
—

 
—

 
72

Cash equivalents
4

 
—

 
—

 
—

 
—

 
4

 
4

 
—

 
—

 
—

 
—

 
4

Derivative assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural gas
49

 
92

 
66

 
—

 
(118
)
 
89

 
148

 
112

 
97

 
—

 
(256
)
 
101

Electricity
—

 
162

 
21

 
—

 
(135
)
 
48

 
—

 
243

 
42

 
—

 
(241
)
 
44

Other
—

 
—

 
5

 
—

 
—

 
5

 
—

 
—

 
9

 
—

 
—

 
9

Foreign currency exchange contracts
—

 
2

 
—

 
—

 
(2
)
 
—

 
—

 
1

 
—

 
—

 
(1
)
 
—

Total derivative assets
49

 
256

 
92


—

 
(255
)
 
142

 
148

 
356

 
148

 
—


(498
)
 
154

Total
$
1,216

 
$
772

 
$
92


$
5

 
$
(255
)
 
$
1,830

 
$
1,368

 
$
836

 
$
148

 
$
5


$
(498
)
 
$
1,859

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural gas
$
(58
)
 
$
(62
)
 
$
(76
)
 
$
—

 
$
126

 
$
(70
)
 
$
(141
)
 
$
(111
)
 
$
(126
)
 
$
—

 
$
263

 
$
(115
)
Electricity
—

 
(164
)
 
(34
)
 
—

 
142

 
(56
)
 
—

 
(245
)
 
(30
)
 
—

 
246

 
(29
)
Other
—

 
—

 
(1
)
 
—

 
—

 
(1
)
 
—

 
—

 
(1
)
 
—

 
1

 
—

Foreign currency exchange contracts
—

 
(2
)
 
—

 
—

 
2

 
—

 
—

 
(3
)
 
—

 
—

 
1

 
(2
)
Total derivative liabilities
(58
)
 
(228
)
 
(111
)
 
—

 
270

 
(127
)
 
(141
)
 
(359
)
 
(157
)
 
—

 
511

 
(146
)
Total
$
(58
)
 
$
(228
)
 
$
(111
)
 
$
—

 
$
270

 
$
(127
)
 
$
(141
)
 
$
(359
)
 
$
(157
)
 
$
—

 
$
511

 
$
(146
)
Net Assets (Liabilities) at end of period
$
1,158

 
$
544

 
$
(19
)
 
$
5

 
$
15

 
$
1,703

 
$
1,227

 
$
477

 
$
(9
)
 
$
5

 
$
13

 
$
1,713

Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
65

 
$
194

 
$
51

 
$
—

 
$
(210
)
 
$
100

 
$
157

 
$
298

 
$
104

 
$
—

 
$
(437
)
 
$
122

Noncurrent
1,151

 
578

 
41

 
5

 
(45
)
 
1,730

 
1,211

 
538

 
44

 
5

 
(61
)
 
1,737

Total Assets
$
1,216

 
$
772

 
$
92

 
$
5

 
$
(255
)
 
$
1,830

 
$
1,368

 
$
836

 
$
148

 
$
5

 
$
(498
)
 
$
1,859

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
(53
)
 
$
(183
)
 
$
(53
)
 
$
—

 
$
220

 
$
(69
)
 
$
(137
)
 
$
(313
)
 
$
(108
)
 
$
—

 
$
459

 
$
(99
)
Noncurrent
(5
)
 
(45
)
 
(58
)
 
—

 
50

 
(58
)
 
(4
)
 
(46
)
 
(49
)
 
—

 
52

 
(47
)
Total Liabilities
$
(58
)
 
$
(228
)
 
$
(111
)
 
$
—

 
$
270

 
$
(127
)
 
$
(141
)
 
$
(359
)
 
$
(157
)
 
$
—

 
$
511

 
$
(146
)
Net Assets (Liabilities) at end of period
$
1,158

 
$
544

 
$
(19
)
 
$
5

 
$
15

 
$
1,703

 
$
1,227

 
$
477

 
$
(9
)
 
$
5

 
$
13

 
$
1,713


_______________________________________
(a)
Amounts represent assets valued at NAV as a practical expedient for fair value.
(b)
Amounts represent the impact of master netting agreements that allow DTE Energy to net gain and loss positions and cash collateral held or placed with the same counterparties.
(c)
At March 31, 2018, equity securities of $16 million consisted of $8 million and $8 million of cash equivalents included in Restricted cash and Other investments on DTE Energy's Consolidated Statements of Financial Position, respectively. At December 31, 2017, equity securities of $19 million consisted of $8 million and $11 million of cash equivalents included in Restricted cash and Other investments on DTE Energy's Consolidated Statements of Financial Position, respectively.
(d)
Excludes cash surrender value of life insurance investments.
The following table presents assets for DTE Electric measured and recorded at fair value on a recurring basis as of:
 
March 31, 2018
 
December 31, 2017
 
Level 1
 
Level 2
 
Level 3
 
Other(a)
 
Net Balance
 
Level 1
 
Level 2
 
Level 3
 
Other(a)
 
Net Balance
 
(In millions)
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents(b)
$
8

 
$
—

 
$
—

 
$
—

 
$
8

 
$
8

 
$
3

 
$
—

 
$
—

 
$
11

Nuclear decommissioning trusts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
933

 
—

 
—

 
—

 
933

 
978

 
—

 
—

 
—

 
978

Fixed income securities
14

 
516

 
—

 
—

 
530

 
18

 
477

 
—

 
—

 
495

Private equity securities
—

 
—

 
—

 
5

 
5

 
—

 
—

 
—

 
5

 
5

Cash equivalents
13

 
—

 
—

 
—

 
13

 
14

 
—

 
—

 
—

 
14

Other investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
11

 
—

 
—

 
—

 
11

 
11

 
—

 
—

 
—

 
11

Derivative assets — FTRs
—

 
—

 
5

 
—

 
5

 
—

 
—

 
9

 
—

 
9

Total
$
979

 
$
516

 
$
5

 
$
5

 
$
1,505

 
$
1,029

 
$
480

 
$
9

 
$
5

 
$
1,523

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
8

 
$
—

 
$
5

 
$
—

 
$
13

 
$
8

 
$
3

 
$
9

 
$
—

 
$
20

Noncurrent
971

 
516

 
—

 
5

 
1,492

 
1,021

 
477

 
—

 
5

 
1,503

Total Assets
$
979

 
$
516

 
$
5

 
$
5

 
$
1,505

 
$
1,029

 
$
480

 
$
9

 
$
5

 
$
1,523

_______________________________________
(a)
Amounts represent assets valued at NAV as a practical expedient for fair value.
(b)
At March 31, 2018, equity securities of $8 million consisted of cash equivalents included in Other investments on DTE Electric's Consolidated Statements of Financial Position.
Fair Value Reconciliation of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis for DTE Energy:
 
Three Months Ended March 31, 2018
 
Three Months Ended March 31, 2017
 
Natural Gas
 
Electricity
 
Other
 
Total
 
Natural Gas
 
Electricity
 
Other
 
Total
 
(In millions)
Net Assets (Liabilities) as of January 1
$
(29
)
 
$
12

 
$
8

 
$
(9
)
 
$
(96
)
 
$
9

 
$
(1
)
 
$
(88
)
Transfers into Level 3 from Level 2
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Transfers from Level 3 into Level 2
(3
)
 
—

 
—

 
(3
)
 
—

 
—

 
—

 
—

Total gains (losses)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in earnings
(70
)
 
131

 
—

 
61

 
52

 
(9
)
 
1

 
44

Recorded in Regulatory liabilities
—

 
—

 
—

 
—

 
—

 
—

 
2

 
2

Purchases, issuances, and settlements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlements
92

 
(156
)
 
(4
)
 
(68
)
 
29

 
(6
)
 
(4
)
 
19

Net Assets (Liabilities) as of March 31
$
(10
)
 
$
(13
)
 
$
4

 
$
(19
)
 
$
(15
)
 
$
(6
)
 
$
(2
)
 
$
(23
)
The amount of total gains (losses) included in Net Income attributed to the change in unrealized gains (losses) related to assets and liabilities held at March 31, 2018 and 2017 and reflected in Operating Revenues — Non-utility operations and Fuel, purchased power, and gas — non-utility in DTE Energy's Consolidated Statements of Operations
$
(58
)
 
$
(10
)
 
$
—

 
$
(68
)
 
$
35

 
$
(3
)
 
$
—

 
$
32

The following table presents the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis for DTE Electric:
 
Three Months Ended March 31,
 
2018
 
2017
 
(In millions)
Net Assets as of beginning of period
$
9

 
$
2

Change in fair value recorded in Regulatory liabilities
—

 
2

Purchases, issuances, and settlements
 
 
 
Settlements
(4
)
 
(3
)
Net Assets as of March 31
$
5

 
$
1

The amount of total gains (losses) included in Regulatory liabilities attributed to the change in unrealized gains (losses) related to assets held at March 31, 2018 and 2017 and reflected in DTE Electric's Consolidated Statements of Financial Position
$
3

 
$
—
Unobservable Inputs Related to Level 3 Assets and Liabilities
The following tables present the unobservable inputs related to DTE Energy's Level 3 assets and liabilities:
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
Derivative Assets
 
Derivative Liabilities
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
$
66

 
$
(76
)
 
Discounted Cash Flow
 
Forward basis price (per MMBtu)
 
$
(1.37
)
—
 
$
4.10
/MMBtu
 
$
(0.08
)/MMBtu
Electricity
 
$
21

 
$
(34
)
 
Discounted Cash Flow
 
Forward basis price (per MWh)
 
$
(6
)
—
 
$
8
/MWh
 
$
—

 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Commodity Contracts
 
Derivative Assets
 
Derivative Liabilities
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
$
97

 
$
(126
)
 
Discounted Cash Flow
 
Forward basis price (per MMBtu)
 
$
(1.10
)
—
 
$
9.75
/MMBtu
 
$
(0.03
)/MMBtu
Electricity
 
$
42

 
$
(30
)
 
Discounted Cash Flow
 
Forward basis price (per MWh)
 
$
(5
)
—
 
$
15
/MWh
 
$
2
/MWh
Carrying Amount of Fair Value of Financial Instruments
The following table presents the carrying amount and fair value of financial instruments for DTE Energy:
 
March 31, 2018
 
December 31, 2017
 
Carrying
 
Fair Value
 
Carrying
 
Fair Value
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
(In millions)
Notes receivable(a), excluding capital leases
$
37

 
$
—

 
$
—

 
$
37

 
$
38

 
$
—

 
$
—

 
$
38

Dividends payable
$
160

 
$
160

 
$
—

 
$
—

 
$
158

 
$
158

 
$
—

 
$
—

Short-term borrowings
$
635

 
$
—

 
$
635

 
$
—

 
$
621

 
$
—

 
$
621

 
$
—

Notes payable — Other(b), excluding capital leases
$
12

 
$
—

 
$
—

 
$
12

 
$
12

 
$
—

 
$
—

 
$
12

Long-term debt(c)
$
12,289

 
$
1,874

 
$
10,136

 
$
813

 
$
12,288

 
$
1,939

 
$
10,571

 
$
764

_______________________________________
(a)
Current portion included in Current Assets — Other on DTE Energy's Consolidated Statements of Financial Position.
(b)
Included in Current Liabilities — Other and Other Liabilities — Other on DTE Energy's Consolidated Statements of Financial Position.
(c)
Includes debt due within one year, unamortized debt discounts, and issuance costs. Excludes Capital lease obligations.
The following table presents the carrying amount and fair value of financial instruments for DTE Electric:
 
March 31, 2018
 
December 31, 2017
 
Carrying
 
Fair Value
 
Carrying
 
Fair Value
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
(In millions)
Short-term borrowings — affiliates
$
142

 
$
—

 
$
—

 
$
142

 
$
116

 
$
—

 
$
—

 
$
116

Short-term borrowings — other
$
380

 
$
—

 
$
380

 
$
—

 
$
238

 
$
—

 
$
238

 
$
—

Notes payable — Other(b), excluding capital leases
$
2

 
$
—

 
$
—

 
$
2

 
$
2

 
$
—

 
$
—

 
$
2

Long-term debt(c)
$
6,018

 
$
—

 
$
6,194

 
$
171

 
$
6,017

 
$
—

 
$
6,441

 
$
171

_______________________________________
(a)
Current portion included in Current Assets — Other on DTE Electric's Consolidated Statements of Financial Position.
(b)
Included in Current Liabilities — Other and Other Liabilities — Other on DTE Electric's Consolidated Statements of Financial Position.
(c)
Includes debt due within one year, unamortized debt discounts, and issuance costs. Excludes Capital lease obligations.
Fair Value of Nuclear Decommissioning Trust Fund Assets
The following table summarizes DTE Electric's fair value of the nuclear decommissioning trust fund assets:
 
March 31, 2018
 
December 31, 2017
 
(In millions)
Fermi 2
$
1,463

 
$
1,475

Fermi 1
3

 
3

Low-level radioactive waste
15

 
14


$
1,481

 
$
1,492
Schedule of Realized Gains and Losses and Proceeds from Sale of Securities by Nuclear Decommissioning Trust Funds
The following table sets forth DTE Electric's gains and losses and proceeds from the sale of securities by the nuclear decommissioning trust funds:
 
Three Months Ended March 31,
 
2018
 
2017
 
(In millions)
Realized gains
$
23

 
$
23

Realized losses
$
(9
)
 
$
(8
)
Proceeds from sale of securities
$
336

 
$
394
Fair Value and Unrealized Gains and Losses for Nuclear Decommissioning Trust Funds
The following table sets forth DTE Electric's fair value and unrealized gains and losses for the nuclear decommissioning trust funds:
 
March 31, 2018
 
December 31, 2017
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Gains
 
Unrealized
Losses
 
(In millions)
Equity securities
$
933

 
$
302

 
$
(38
)
 
$
978

 
$
320

 
$
(32
)
Fixed income securities
530

 
8

 
(7
)
 
495

 
13

 
(3
)
Private equity securities
5

 
—

 
—

 
5

 
—

 
—

Cash equivalents
13

 
—

 
—

 
14

 
—

 
—

 
$
1,481

 
$
310

 
$
(45
)
 
$
1,492

 
$
333

 
$
(35
)
Fair Value of the Fixed Income Securities Held in Nuclear Decommissioning Trust Funds
The following table summarizes the fair value of the fixed income securities held in nuclear decommissioning trust funds by contractual maturity:
 
March 31, 2018
 
(In millions)
Due within one year
$
25

Due after one through five years
108

Due after five through ten years
117

Due after ten years
280

 
$
530