Leases

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

LEASES

Lessor

During the first quarter 2021, 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 an additional net investment of $31 million.

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

	DTE Energy
	March 31, 2021
	(In millions)
2021	$	19
2022	22
2023	22
2024	22
2025	22
2026 and Thereafter	292
Total minimum future lease receipts	399
Residual value of leased pipeline	17
Less unearned income	211
Net investment in finance lease	205
Less current portion	9
	$	196

Interest income recognized under finance leases was $4 million for the three months ended March 31, 2021 and 2020.

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

	Three Months Ended March 31,
	2021		2020
	(In millions)
Fixed payments(a)	$	17	$	16
Variable payments(a)	17		23
	$	34	$	39

_______________________________________

(a)Includes $24 million and $29 million of lease payments reported in Operating Revenues on DTE Energy's Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020, respectively, and $10 million of lease payments reported in Other income for both periods.

Leases

LEASES

Lessor

During the first quarter 2021, 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 an additional net investment of $31 million.

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

	DTE Energy
	March 31, 2021
	(In millions)
2021	$	19
2022	22
2023	22
2024	22
2025	22
2026 and Thereafter	292
Total minimum future lease receipts	399
Residual value of leased pipeline	17
Less unearned income	211
Net investment in finance lease	205
Less current portion	9
	$	196

Interest income recognized under finance leases was $4 million for the three months ended March 31, 2021 and 2020.

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

	Three Months Ended March 31,
	2021		2020
	(In millions)
Fixed payments(a)	$	17	$	16
Variable payments(a)	17		23
	$	34	$	39

_______________________________________

(a)Includes $24 million and $29 million of lease payments reported in Operating Revenues on DTE Energy's Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020, respectively, and $10 million of lease payments reported in Other income for both periods.

Leases

LEASES

Lessor

During the first quarter 2021, 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 an additional net investment of $31 million.

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

	DTE Energy
	March 31, 2021
	(In millions)
2021	$	19
2022	22
2023	22
2024	22
2025	22
2026 and Thereafter	292
Total minimum future lease receipts	399
Residual value of leased pipeline	17
Less unearned income	211
Net investment in finance lease	205
Less current portion	9
	$	196

Interest income recognized under finance leases was $4 million for the three months ended March 31, 2021 and 2020.

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

	Three Months Ended March 31,
	2021		2020
	(In millions)
Fixed payments(a)	$	17	$	16
Variable payments(a)	17		23
	$	34	$	39

_______________________________________

(a)Includes $24 million and $29 million of lease payments reported in Operating Revenues on DTE Energy's Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020, respectively, and $10 million of lease payments reported in Other income for both periods.