Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

LEASES

Lessor

During the first quarter 2022, 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 $33 million.

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

	DTE Energy
	June 30, 2022
	(In millions)
2022	$	13
2023	26
2024	26
2025	27
2026	26
2027 and Thereafter	335
Total minimum future lease receipts	453
Residual value of leased pipeline	17
Less unearned income	242
Net investment in finance lease	228
Less current portion	6
	$	222

Interest income recognized under finance leases was $6 million and $5 million for the three months ended June 30, 2022 and 2021, respectively, and $11 million and $9 million for the six months ended June 30, 2022 and 2021, respectively.

DTE Energy’s lease income associated with operating leases, including the line items in which it was included on the Consolidated Statements of Operations, was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In millions)
Fixed payments	$	4	$	14	$	8	$	29
Variable payments	15		18		31		35
	$	19	$	32	$	39	$	64
Operating revenues	$	19	$	22	$	39	$	44
Other income	—		10		—		20
	$	19	$	32	$	39	$	64

Leases

LEASES

Lessor

During the first quarter 2022, 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 $33 million.

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

	DTE Energy
	June 30, 2022
	(In millions)
2022	$	13
2023	26
2024	26
2025	27
2026	26
2027 and Thereafter	335
Total minimum future lease receipts	453
Residual value of leased pipeline	17
Less unearned income	242
Net investment in finance lease	228
Less current portion	6
	$	222

Interest income recognized under finance leases was $6 million and $5 million for the three months ended June 30, 2022 and 2021, respectively, and $11 million and $9 million for the six months ended June 30, 2022 and 2021, respectively.

DTE Energy’s lease income associated with operating leases, including the line items in which it was included on the Consolidated Statements of Operations, was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In millions)
Fixed payments	$	4	$	14	$	8	$	29
Variable payments	15		18		31		35
	$	19	$	32	$	39	$	64
Operating revenues	$	19	$	22	$	39	$	44
Other income	—		10		—		20
	$	19	$	32	$	39	$	64

Leases

LEASES

Lessor

During the first quarter 2022, 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 $33 million.

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

	DTE Energy
	June 30, 2022
	(In millions)
2022	$	13
2023	26
2024	26
2025	27
2026	26
2027 and Thereafter	335
Total minimum future lease receipts	453
Residual value of leased pipeline	17
Less unearned income	242
Net investment in finance lease	228
Less current portion	6
	$	222

Interest income recognized under finance leases was $6 million and $5 million for the three months ended June 30, 2022 and 2021, respectively, and $11 million and $9 million for the six months ended June 30, 2022 and 2021, respectively.

DTE Energy’s lease income associated with operating leases, including the line items in which it was included on the Consolidated Statements of Operations, was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In millions)
Fixed payments	$	4	$	14	$	8	$	29
Variable payments	15		18		31		35
	$	19	$	32	$	39	$	64
Operating revenues	$	19	$	22	$	39	$	44
Other income	—		10		—		20
	$	19	$	32	$	39	$	64