Leases

3 Months Ended

Mar. 31, 2020

LEASES

Lessor

During the first quarter of 2020, DTE Energy completed construction of and began operating certain energy infrastructure assets for a large industrial customer under a long-term agreement, where the assets will transfer to the customer at the end of the contract term in 2040. DTE Energy has accounted for a portion of the agreement as a finance lease arrangement, recognizing a net investment of $133 million.

The components of DTE Energy’s net investment in finance leases for remaining periods were as follows:



	DTE Energy
	March 31, 2020
	(In millions)
2020	$	17
2021	19
2022	19
2023	19
2024	19
2025 and Thereafter	273
Total minimum future lease receipts	366
Residual value of leased pipeline	19
Less unearned income	208
Net investment in finance lease	177
Less current portion	7
	$	170

Interest income recognized under finance leases was $4 million and $1 million for the three months ended March 31, 2020 and 2019, respectively.

DTE Energy’s lease income associated with operating leases was as follows:



	Three Months Ended March 31,
	2020		2019
	(In millions)
Fixed payments	$	16	$	17
Variable payments	23		27
	$	39	$	44

Leases

LEASES

Lessor

The components of DTE Energy’s net investment in finance leases for remaining periods were as follows:



	DTE Energy
	March 31, 2020
	(In millions)
2020	$	17
2021	19
2022	19
2023	19
2024	19
2025 and Thereafter	273
Total minimum future lease receipts	366
Residual value of leased pipeline	19
Less unearned income	208
Net investment in finance lease	177
Less current portion	7
	$	170

Interest income recognized under finance leases was $4 million and $1 million for the three months ended March 31, 2020 and 2019, respectively.

DTE Energy’s lease income associated with operating leases was as follows:



	Three Months Ended March 31,
	2020		2019
	(In millions)
Fixed payments	$	16	$	17
Variable payments	23		27
	$	39	$	44