

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(In millions)
Income from REF entities	$	40	$	27	$	96	$	75
Equity earnings of equity method investees	34		46		77		99
Gains from equity securities	3		5		27		6
Contract services	7		11		21		43
Allowance for equity funds used during construction	5		7		18		20
Other	9		3		20		19
	$	98	$	99	$	259	$	262



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(In millions)
Gains from equity securities allocated from DTE Energy	$	3	$	5	$	27	$	6
Contract services	7		11		23		44
Allowance for equity funds used during construction	5		5		17		14
Other	5		2		11		8
	$	20	$	23	$	78	$	72

Comprehensive income (loss) is the change in common shareholders' equity during a period from transactions and events from non-owner sources, including Net Income. The amounts recorded to Accumulated other comprehensive income (loss) for DTE Energy include changes in benefit obligations, consisting of deferred actuarial losses and prior service costs, unrealized gains and losses from derivatives accounted for as cash flow hedges, DTE Energy's interest in other comprehensive income of equity investees which comprise the net unrealized gains and losses on investments, and foreign currency translation adjustments. DTE Energy releases income tax effects from accumulated other comprehensive income when the circumstances upon which they are premised cease to exist.

Changes in Accumulated other comprehensive income (loss) are presented in DTE Energy's Consolidated Statements of Changes in Equity and DTE Electric's Consolidated Statements of Changes in Shareholder's Equity. For further discussion regarding changes in Accumulated other comprehensive income (loss), see Note 3 to the Consolidated Financial Statements, "New Accounting Pronouncements." For the three and nine months ended September 30, 2019 and 2018, reclassifications out of Accumulated other comprehensive income (loss) not relating to the adoption of new accounting pronouncements for DTE Energy were not material.



	Effective Tax Rate
	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
DTE Energy	13	%	9	%	12	%	12	%
DTE Electric	16	%	21	%	16	%	22	%

These tax rates are affected by estimated annual permanent items, including AFUDC equity, production tax credits, and other flow-through items, as well as discrete items that may occur in any given period, but are not consistent from period to period.

The 4% increase in DTE Energy's effective tax rate for the three months ended September 30, 2019 was primarily due to a decrease in annual production tax credits, partially offset by the amortization of the TCJA regulatory liability in 2019 and the $20 million valuation allowance for the AMT credit carryover in 2018. There was no change in DTE Energy's effective tax rate for the nine months ended September 30, 2019. This was primarily due to a decrease in annual production tax credits, offset by the amortization of the TCJA regulatory liability in 2019, true-up adjustments to the remeasurement of deferred taxes in 2018 of $21 million, and the $20 million valuation allowance for the AMT credit carryover in 2018.

The 5% and 6% decrease in DTE Electric's effective tax rate for the three and nine months ended September 30, 2019, respectively, was primarily due to the amortization of the TCJA regulatory liability of 4% and higher production tax credits of 1% in 2019. The additional 1% decrease for the nine months ended September 30, 2019 was due to the remeasurement of deferred taxes in 2018 of $7 million.

DTE Energy's total amount of unrecognized tax benefits as of September 30, 2019 was $8 million, which if recognized, would favorably impact its effective tax rate. DTE Electric's total amount of unrecognized tax benefits as of September 30, 2019 was $10 million, which if recognized, would favorably impact its effective tax rate. The Registrants do not anticipate any material changes to the unrecognized tax benefits in the next twelve months.

DTE Electric had income tax payables of $13 million with DTE Energy at September 30, 2019 and income tax receivables with DTE Energy of $8 million at December 31, 2018.

As of September 30, 2019, DTE Energy had $88 million of total unrecognized compensation cost related to non-vested stock incentive plan arrangements. That cost is expected to be recognized over a weighted-average period of 1.30 years.

DTE Electric received an allocation of costs from DTE Energy associated with stock-based compensation of $9 million and $11 million for the three months ended September 30, 2019 and 2018, respectively, while such allocation was $33 million and $27 million for the nine months ended September 30, 2019 and 2018, respectively.

Cash and cash equivalents include cash on hand, cash in banks, and temporary investments purchased with remaining maturities of three months or less. Restricted cash consists of funds held to satisfy requirements of certain debt and DTE Energy partnership operating agreements. Restricted cash designated for interest and principal payments within one year is classified as a Current Asset.



		September 30, 2019							December 31, 2018
	Useful Lives	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
		(In millions)
Intangible assets subject to amortization
Customer relationships	25 to 40 years^(a)	$	779	$	(58	)	$	721	$	779	$	(44	)	$	735
Contract intangibles	6 to 26 years	270		(72		)	198		159		(66		)	93
		1,049		(130		)	919		938		(110		)	828

DTE Electric renewable energy credits	(b)	20		—			20		20		—			20
DTE Electric emission allowances	(b)	1		—			1		1		—			1
		21		—			21		21		—			21
Long-term intangible assets
DTE Electric		$	21	$	—		$	21	$	21	$	—		$	21
DTE Energy		$	1,070	$	(130	)	$	940	$	959	$	(110	)	$	849

The following table summarizes DTE Energy's estimated customer relationship and contract intangible amortization expense expected to be recognized during each year through 2024:

DTE Energy amortizes customer relationship and contract intangible assets on a straight-line basis over the expected period of benefit. DTE Energy's Intangible assets amortization expense was $7 million for the three months ended September 30, 2019 and 2018, while amortization expense was $21 million and $20 million for the nine months ended September 30, 2019 and 2018, respectively.