XML 73 R53.htm IDEA: XBRL DOCUMENT v3.10.0.1
Retirement Benefits and Trusteed Assets (Tables)
12 Months Ended
Dec. 31, 2018
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Defined Benefit Plans Disclosures
The table below represents the pension and other postretirement benefit plans of each Registrant at December 31, 2018:
 
Registrants
 
DTE Energy
 
DTE Electric
Qualified Pension Plans
 
 
 
DTE Energy Company Retirement Plan
X
 
X
DTE Gas Company Retirement Plan for Employees Covered by Collective Bargaining Agreements
X
 
 
Shenango Inc. Pension Plan
X
 
 
Nonqualified Pension Plans
 
 
 
DTE Energy Company Supplemental Retirement Plan
X
 
X
DTE Energy Company Executive Supplemental Retirement Plan(a)
X
 
X
DTE Energy Company Supplemental Severance Benefit Plan
X
 
 
Other Postretirement Benefit Plans
 
 
 
The DTE Energy Company Comprehensive Non-Health Welfare Plan
X
 
X
The DTE Energy Company Comprehensive Retiree Group Health Care Plan
X
 
X
DTE Supplemental Retiree Benefit Plan
X
 
X
DTE Energy Company Retiree Reimbursement Arrangement Plan
X
 
X
_____________________________________
(a)
Sponsored by the DTE Energy subsidiary, DTE Energy Holding Company.
Pension Plan  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Defined Benefit Plans Disclosures
The following table reconciles the obligations, assets, and funded status of the plans as well as the amounts recognized as prepaid pension cost or pension liability in DTE Energy's Consolidated Statements of Financial Position at December 31:
 
DTE Energy
 
2018
 
2017
 
(In millions)
Accumulated benefit obligation, end of year
$
4,779

 
$
5,149

Change in projected benefit obligation
 
 
 
Projected benefit obligation, beginning of year
$
5,576

 
$
5,171

Service cost
99

 
92

Interest cost
202

 
214

Plan amendments

 
(11
)
Actuarial (gain) loss
(438
)
 
391

Benefits paid
(315
)
 
(281
)
Projected benefit obligation, end of year
$
5,124

 
$
5,576

Change in plan assets
 
 
 
Plan assets at fair value, beginning of year
$
4,636

 
$
4,012

Actual return on plan assets
(233
)
 
674

Company contributions
185

 
231

Benefits paid
(315
)
 
(281
)
Plan assets at fair value, end of year
$
4,273

 
$
4,636

Funded status
$
(851
)
 
$
(940
)
Amount recorded as:
 
 
 
Current liabilities
$
(14
)
 
$
(16
)
Noncurrent liabilities
(837
)
 
(924
)
 
$
(851
)
 
$
(940
)
Amounts recognized in Accumulated other comprehensive income (loss), pre-tax
 
 
 
Net actuarial loss
$
152

 
$
163

Prior service cost
5

 
6

 
$
157

 
$
169

Amounts recognized in Regulatory assets(a)
 
 
 
Net actuarial loss
$
1,973

 
$
2,014

Prior service credit
(12
)
 
(14
)
 
$
1,961

 
$
2,000

______________________________________
(a)
See Note 9 to the Consolidated Financial Statements, "Regulatory Matters."
During 2018, DTE Energy contributed the following amounts of DTE Energy common stock to the DTE Energy Company Affiliates Employee Benefit Plans Master Trust:
Date
 
Number of Shares
 
Price per Share
 
Amount
 
 
 
 
 
 
(In millions)
March 7, 2018
 
1,751,401
 
$99.92
 
$
175

The following table provides contributions to the qualified pension plans in:
 
2018
 
2017
 
2016
 
(In millions)
DTE Energy
$
175

 
$
223

 
$
179

DTE Electric
175

 
185

 
145

Schedule of Net Benefit Costs
Net pension cost for DTE Energy includes the following components:
 
2018
 
2017
 
2016
 
(In millions)
Service cost
$
99

 
$
92

 
$
92

Interest cost
202

 
214

 
219

Expected return on plan assets
(329
)
 
(311
)
 
(309
)
Amortization of:
 
 
 
 
 
Net actuarial loss
176

 
176

 
164

Prior service cost

 
1

 
1

Net pension cost
$
148

 
$
172

 
$
167

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
 
2018
 
2017
 
(In millions)
Other changes in plan assets and benefit obligations recognized in Regulatory assets and Other comprehensive income (loss)
 
 
 
Net actuarial loss
$
125

 
$
27

Amortization of net actuarial loss
(176
)
 
(176
)
Prior service credit

 
(11
)
Amortization of prior service cost

 
(1
)
Total recognized in Regulatory assets and Other comprehensive income (loss)
$
(51
)
 
$
(161
)
Total recognized in net periodic pension cost, Regulatory assets, and Other comprehensive income (loss)
$
97

 
$
11

Estimated amounts to be amortized from Regulatory assets and Accumulated other comprehensive income (loss) into net periodic benefit cost during next fiscal year
 
 
 
Net actuarial loss
$
131

 
$
178

Prior service cost
$
1

 
$

Schedule of Expected Benefit Payments
At December 31, 2018, the benefits related to DTE Energy's qualified and nonqualified pension plans expected to be paid in each of the next five years and in the aggregate for the five fiscal years thereafter are as follows:
 
(In millions)
2019
$
311

2020
317

2021
317

2022
323

2023
332

2024-2028
1,713

Total
$
3,313

Schedule of Assumptions Used
Assumptions used in determining the projected benefit obligation and net pension costs of DTE Energy are:
 
2018
 
2017
 
2016
Projected benefit obligation
 
 
 
 
 
Discount rate
4.40%
 
3.70%
 
4.25%
Rate of compensation increase
4.98%
 
4.98%
 
4.65%
Net pension costs
 
 
 
 
 
Discount rate
3.70%
 
4.25%
 
4.50%
Rate of compensation increase
4.98%
 
4.65%
 
4.65%
Expected long-term rate of return on plan assets
7.50%
 
7.50%
 
7.75%
Schedule of Allocation of Plan Assets
The following tables provide the fair value measurement amounts for DTE Energy's pension plan assets at December 31, 2018 and 2017(a):
 
December 31, 2018
 
December 31, 2017
 
Level 1
 
Level 2
 
Other(b)
 
Total
 
Level 1
 
Level 2
 
Other(b)
 
Total
 
(In millions)
DTE Energy asset category:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term Investments(c)
$

 
$
27

 
$

 
$
27

 
$

 
$
114

 
$

 
$
114

Equity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 


U.S. Large Cap(d)
606

 
3

 

 
609

 
821

 
5

 

 
826

U.S. Small Cap and Mid Cap(e)
123

 
1

 

 
124

 
229

 
5

 

 
234

Non-U.S.(f)
337

 
9

 
240

 
586

 
529

 
13

 
280

 
822

Fixed Income Securities(g)
6

 
1,892

 

 
1,898

 
1

 
1,453

 

 
1,454

Hedge Funds and Similar Investments(h)
88

 

 
542

 
630

 
265

 

 
593

 
858

Private Equity and Other(i)

 

 
399

 
399

 

 

 
328

 
328

Securities Lending(j)
(22
)
 
(8
)
 

 
(30
)
 
(53
)
 
(13
)
 

 
(66
)
Securities Lending Collateral(j)
22

 
8

 

 
30

 
53

 
13

 

 
66

DTE Energy Total
$
1,160

 
$
1,932

 
$
1,181

 
$
4,273

 
$
1,845

 
$
1,590

 
$
1,201

 
$
4,636

_______________________________________
(a)
For a description of levels within the fair value hierarchy, see Note 12 to the Consolidated Financial Statements, "Fair Value."
(b)
Amounts represent assets valued at NAV as a practical expedient for fair value.
(c)
This category predominantly represents certain short-term fixed income securities and money market investments that are managed in separate accounts or commingled funds. Pricing for investments in this category are obtained from quoted prices in actively traded markets or valuations from brokers or pricing services.
(d)
This category represents portfolios of large capitalization domestic equities. Investments in this category are exchange-traded securities whereby unadjusted quoted prices can be obtained.
(e)
This category represents portfolios of small and medium capitalization domestic equities. Investments in this category are exchange-traded securities whereby unadjusted quoted prices can be obtained.
(f)
This category primarily consists of portfolios of non-U.S. developed and emerging market equities. Investments in this category are exchange-traded securities whereby unadjusted quoted prices can be obtained. Exchange-traded securities held in a commingled fund are classified as NAV assets.
(g)
This category includes corporate bonds from diversified industries, U.S. Treasuries, other governmental debt, bank loans, and mortgage-backed securities. Pricing for investments in this category is obtained from quoted prices in actively traded markets and quotations from broker or pricing services.
(h)
This category utilizes a diversified group of strategies that attempt to capture financial market inefficiencies and includes publicly traded mutual funds, commingled funds and limited partnership funds. Pricing for mutual funds in this category is obtained from quoted prices in actively traded markets. Commingled funds and limited partnership funds are classified as NAV assets.
(i)
This category includes a diversified group of funds and strategies that primarily invests in private equity partnerships. This category also includes investments in real estate and private debt. All pricing for investments in this category are classified as NAV assets.
(j)
DTE Energy has a securities lending program with a third-party agent. The program allows the agent to lend certain securities from DTE Energy's pension trust to selected entities against receipt of collateral (in the form of cash) as provided for and determined in accordance with their securities lending agency agreements.
Target allocations for DTE Energy's pension plan assets as of December 31, 2018 are listed below:
U.S. Large Capitalization (Cap) Equity Securities
16
%
U.S. Small Cap and Mid Cap Equity Securities
4

Non-U.S. Equity Securities
15

Fixed Income Securities
42

Hedge Funds and Similar Investments
15

Private Equity and Other
8

 
100
%
Other postretirement benefit plan  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Defined Benefit Plans Disclosures
The following table reconciles the obligations, assets, and funded status of the plans including amounts recorded as Accrued postretirement liability in the Registrants' Consolidated Statements of Financial Position at December 31:
 
DTE Energy
 
DTE Electric
 
2018
 
2017
 
2018
 
2017
 
(In millions)
Change in accumulated postretirement benefit obligation
 
 
 
 
 
 
 
Accumulated postretirement benefit obligation, beginning of year
$
1,910

 
$
1,795

 
$
1,470

 
$
1,373

Service cost
27

 
27

 
20

 
20

Interest cost
69

 
73

 
53

 
56

Plan amendments
(44
)
 

 
(35
)
 

Actuarial (gain) loss
(227
)
 
101

 
(196
)
 
84

Benefits paid
(90
)
 
(86
)
 
(65
)
 
(63
)
Accumulated postretirement benefit obligation, end of year
$
1,645

 
$
1,910

 
$
1,247

 
$
1,470

Change in plan assets
 
 
 
 
 
 
 
Plan assets at fair value, beginning of year
$
1,848

 
$
1,758

 
$
1,272

 
$
1,218

Actual return on plan assets
(75
)
 
252

 
(52
)
 
172

Benefits paid
(84
)
 
(162
)
 
(62
)
 
(118
)
Plan assets at fair value, end of year
$
1,689

 
$
1,848

 
$
1,158

 
$
1,272

Funded status
$
44

 
$
(62
)
 
$
(89
)
 
$
(198
)
Amount recorded as:
 
 
 
 
 
 
 
Noncurrent assets
$
45

 
$

 
$
189

 
$
113

Current liabilities
(1
)
 
(1
)
 

 

Noncurrent liabilities

 
(61
)
 
(278
)
 
(311
)
 
$
44

 
$
(62
)
 
$
(89
)
 
$
(198
)
Amounts recognized in Accumulated other comprehensive income (loss), pre-tax
 
 
 
 
 
 
 
Net actuarial (gain) loss
$
1

 
$
(1
)
 
$

 
$

 
$
1

 
$
(1
)
 
$

 
$

Amounts recognized in Regulatory assets(a)
 
 
 
 
 
 
 
Net actuarial loss
$
257

 
$
279

 
$
156

 
$
211

Prior service credit
(44
)
 
(1
)
 
(35
)
 

 
$
213

 
$
278

 
$
121

 
$
211

______________________________________
(a)
See Note 9 to the Consolidated Financial Statements, "Regulatory Matters."
Schedule of Net Benefit Costs
Net other postretirement credit for DTE Energy includes the following components:
 
2018
 
2017
 
2016
 
(In millions)
Service cost
$
27

 
$
27

 
$
27

Interest cost
69

 
73

 
80

Expected return on plan assets
(143
)
 
(130
)
 
(129
)
Amortization of:
 
 
 
 
 
Net actuarial loss
11

 
13

 
30

Prior service credit

 
(14
)
 
(118
)
Other

 

 
(1
)
Net other postretirement credit
$
(36
)
 
$
(31
)
 
$
(111
)
Net other postretirement credit for DTE Electric includes the following components:
 
2018
 
2017
 
2016
 
(In millions)
Service cost
$
20

 
$
20

 
$
20

Interest cost
53

 
56

 
61

Expected return on plan assets
(98
)
 
(90
)
 
(90
)
Amortization of:
 
 
 
 
 
Net actuarial loss
8

 
8

 
21

Prior service credit

 
(10
)
 
(89
)
Net other postretirement credit
$
(17
)
 
$
(16
)
 
$
(77
)
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
 
2018
 
2017
 
(In millions)
Other changes in plan assets and accumulated postretirement benefit obligation recognized in Regulatory assets
 
 
 
Net actuarial (gain) loss
$
(46
)
 
$
2

Amortization of net actuarial loss
(8
)
 
(8
)
Amortization of prior service (cost) credit
(35
)
 
10

Total recognized in Regulatory assets
$
(89
)
 
$
4

Total recognized in net periodic benefit cost and Regulatory assets
$
(106
)
 
$
(12
)
Estimated amounts to be amortized from Regulatory assets into net periodic benefit cost during next fiscal year
 
 
 
Net actuarial loss
$
5

 
$
8

Prior service credit
$
(7
)
 
$

 
2018
 
2017
 
(In millions)
Other changes in plan assets and accumulated postretirement benefit obligation recognized in Regulatory assets and Other comprehensive income (loss)
 
 
 
Net actuarial gain
$
(8
)
 
$
(21
)
Amortization of net actuarial loss
(11
)
 
(13
)
Prior service credit
(44
)
 
(1
)
Amortization of prior service credit

 
14

Total recognized in Regulatory assets and Other comprehensive income (loss)
$
(63
)
 
$
(21
)
Total recognized in net periodic benefit cost, Regulatory assets, and Other comprehensive income (loss)
$
(99
)
 
$
(52
)
Estimated amounts to be amortized from Regulatory assets and Accumulated other comprehensive income (loss) into net periodic benefit cost during next fiscal year
 
 
 
Net actuarial loss
$
12

 
$
11

Prior service credit
$
(9
)
 
$
(1
)
Schedule of Expected Benefit Payments
At December 31, 2018, the benefits expected to be paid, including prescription drug benefits, in each of the next five years and in the aggregate for the five fiscal years thereafter for the Registrants are as follows:
 
DTE Energy
 
DTE Electric
 
(In millions)
2019
$
88

 
$
66

2020
92

 
70

2021
96

 
73

2022
100

 
75

2023
102

 
77

2024-2028
532

 
402

Total
$
1,010

 
$
763

Schedule of Assumptions Used
Assumptions used in determining the accumulated postretirement benefit obligation and net other postretirement benefit costs of the Registrants are:
 
2018
 
2017
 
2016
Accumulated postretirement benefit obligation
 
 
 
 
 
Discount rate
4.40%
 
3.70%
 
4.25%
Health care trend rate pre- and post- 65
6.75 / 7.25%
 
6.75 / 7.25%
 
6.50 / 6.75%
Ultimate health care trend rate
4.50%
 
4.50%
 
4.50%
Year in which ultimate reached pre- and post- 65
2031
 
2030
 
2028
Other postretirement benefit costs
 
 
 
 
 
Discount rate
3.70%
 
4.25%
 
4.50%
Expected long-term rate of return on plan assets
7.75%
 
7.75%
 
8.00%
Health care trend rate pre- and post- 65
6.75 / 7.25%
 
6.50 / 6.75%
 
6.25 / 6.75%
Ultimate health care trend rate
4.50%
 
4.50%
 
4.50%
Year in which ultimate reached pre- and post- 65
2030
 
2028
 
2027
Schedule of Allocation of Plan Assets
Target allocations for the Registrants' other postretirement benefit plan assets as of December 31, 2018 are listed below:
U.S. Large Cap Equity Securities
16
%
U.S. Small Cap and Mid Cap Equity Securities
4

Non-U.S. Equity Securities
19

Fixed Income Securities
28

Hedge Funds and Similar Investments
19

Private Equity and Other
14

 
100
%
Target allocations for the Registrants' other postretirement benefit plan assets as of December 31, 2018 are listed below:
U.S. Large Cap Equity Securities
16
%
U.S. Small Cap and Mid Cap Equity Securities
4

Non-U.S. Equity Securities
19

Fixed Income Securities
28

Hedge Funds and Similar Investments
19

Private Equity and Other
14

 
100
%

The following tables provide the fair value measurement amounts for the Registrants' other postretirement benefit plan assets at December 31, 2018 and 2017(a):
 
December 31, 2018
 
December 31, 2017
 
Level 1
 
Level 2
 
Other(b)
 
Total
 
Level 1
 
Level 2
 
Other(b)
 
Total
DTE Energy asset category:
(In millions)
Short-term Investments(c)
$
14

 
$
2

 
$

 
$
16

 
$
13

 
$
2

 
$

 
$
15

Equity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Large Cap(d)
225

 

 

 
225

 
284

 

 

 
284

U.S. Small Cap and Mid Cap(e)
75

 

 

 
75

 
131

 

 

 
131

Non-U.S.(f)
234

 

 
67

 
301

 
288

 
1

 
77

 
366

Fixed Income Securities(g)
11

 
350

 
130

 
491

 
29

 
324

 
130

 
483

Hedge Funds and Similar Investments(h)
97

 

 
203

 
300

 
116

 

 
219

 
335

Private Equity and Other(i)

 

 
281

 
281

 

 

 
234

 
234

Securities Lending(j)
(21
)
 
(1
)
 

 
(22
)
 
(39
)
 
(1
)
 

 
(40
)
Securities Lending Collateral(j)
21

 
1

 

 
22

 
39

 
1

 

 
40

DTE Energy Total
$
656

 
$
352

 
$
681

 
$
1,689

 
$
861

 
$
327

 
$
660

 
$
1,848

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DTE Electric asset category:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term Investments(c)
$
10

 
$
1

 
$

 
$
11

 
$
9

 
$
1

 
$

 
$
10

Equity Securities
 
 
 
 
 
 


 
 
 
 
 
 
 


U.S. Large Cap(d)
154

 

 

 
154

 
195

 

 

 
195

U.S. Small Cap and Mid Cap(e)
52

 

 

 
52

 
91

 

 

 
91

Non-U.S.(f)
163

 

 
45

 
208

 
200

 
1

 
52

 
253

Fixed Income Securities(g)
7

 
232

 
92

 
331

 
20

 
218

 
92

 
330

Hedge Funds and Similar Investments(h)
68

 

 
139

 
207

 
80

 

 
150

 
230

Private Equity and Other(i)

 

 
195

 
195

 

 

 
163

 
163

Securities Lending(j)
(15
)
 

 

 
(15
)
 
(27
)
 
(1
)
 

 
(28
)
Securities Lending Collateral(j)
15

 

 

 
15

 
27

 
1

 

 
28

DTE Electric Total
$
454

 
$
233

 
$
471

 
$
1,158

 
$
595

 
$
220

 
$
457

 
$
1,272

_______________________________________
(a)
For a description of levels within the fair value hierarchy see Note 12 to the Consolidated Financial Statements, "Fair Value."
(b)
Amounts represent assets valued at NAV as a practical expedient for fair value.
(c)
This category predominantly represents certain short-term fixed income securities and money market investments that are managed in separate accounts or commingled funds. Pricing for investments in this category are obtained from quoted prices in actively traded markets or valuations from brokers or pricing services.
(d)
This category represents portfolios of large capitalization domestic equities. Investments in this category are exchange-traded securities whereby unadjusted quoted prices can be obtained.
(e)
This category represents portfolios of small and medium capitalization domestic equities. Investments in this category are exchange-traded securities whereby unadjusted quoted prices can be obtained.
(f)
This category primarily consists of portfolios of non-U.S. developed and emerging market equities. Investments in this category are exchange-traded securities whereby unadjusted quoted prices can be obtained. Exchange-traded securities held in a commingled fund are classified as NAV assets.
(g)
This category includes corporate bonds from diversified industries, U.S. Treasuries, other governmental debt, bank loans, and mortgage backed securities. Pricing for investments in this category is obtained from quoted prices in actively traded markets and quotations from broker or pricing services. Non-exchange traded securities and exchange-traded securities held in commingled funds are classified as NAV assets.
(h)
This category utilizes a diversified group of strategies that attempt to capture financial market inefficiencies and includes publicly traded mutual funds, commingled funds and limited partnership funds. Pricing for mutual funds in this category is obtained from quoted prices in actively traded markets. Commingled funds and limited partnership funds are classified as NAV assets.
(i)
This category includes a diversified group of funds and strategies that primarily invests in private equity partnerships. This category also includes investments in real estate and private debt. All investments in this category are classified as NAV assets.
(j)
The Registrants have a securities lending program with a third-party agent. The program allows the agent to lend certain securities from the Registrants' VEBA trust to selected entities against receipt of collateral (in the form of cash) as provided for and determined in accordance with their securities lending agency agreements.