XML 42 R25.htm IDEA: XBRL DOCUMENT v3.24.2
Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases LEASES
Lessor
During the first quarter 2024, DTE Energy completed construction of and began operating certain energy infrastructure assets under a long-term agreement with a large industrial customer. DTE Energy began leasing these assets to the customer for a 20-year term ending in 2044. DTE Energy has accounted for this arrangement as a finance lease, recognizing a net investment of $135 million as of June 30, 2024. Under the long-term agreement, additional energy infrastructure assets remain under construction and are expected to be completed through the remainder of 2024. The assets will be subsequently leased to the customer and increase the net investment in finance leases accordingly.
The components of DTE Energy’s net investment in finance leases for remaining periods were as follows:
DTE Energy
June 30, 2024
(In millions)
2024$25 
202549 
202649 
202749 
202848 
2029 and Thereafter606 
Total minimum future lease receipts826 
Residual value of leased pipeline17 
Less unearned income425 
Net investment in finance lease418 
Less current portion12 
$406 
Interest income recognized under finance leases was $9 million and $7 million for the three months ended June 30, 2024 and 2023, respectively, and $17 million and $14 million for the six months ended June 30, 2024 and 2023, respectively.
DTE Energy’s lease income associated with operating leases, included in Operating Revenues — Non-utility operations in the Consolidated Statements of Operations, was as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In millions)
Fixed payments$3 $3 $7 $7 
Variable payments9 7 19 18 
$12 $10 $26 $25 
Leases LEASES
Lessor
During the first quarter 2024, DTE Energy completed construction of and began operating certain energy infrastructure assets under a long-term agreement with a large industrial customer. DTE Energy began leasing these assets to the customer for a 20-year term ending in 2044. DTE Energy has accounted for this arrangement as a finance lease, recognizing a net investment of $135 million as of June 30, 2024. Under the long-term agreement, additional energy infrastructure assets remain under construction and are expected to be completed through the remainder of 2024. The assets will be subsequently leased to the customer and increase the net investment in finance leases accordingly.
The components of DTE Energy’s net investment in finance leases for remaining periods were as follows:
DTE Energy
June 30, 2024
(In millions)
2024$25 
202549 
202649 
202749 
202848 
2029 and Thereafter606 
Total minimum future lease receipts826 
Residual value of leased pipeline17 
Less unearned income425 
Net investment in finance lease418 
Less current portion12 
$406 
Interest income recognized under finance leases was $9 million and $7 million for the three months ended June 30, 2024 and 2023, respectively, and $17 million and $14 million for the six months ended June 30, 2024 and 2023, respectively.
DTE Energy’s lease income associated with operating leases, included in Operating Revenues — Non-utility operations in the Consolidated Statements of Operations, was as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In millions)
Fixed payments$3 $3 $7 $7 
Variable payments9 7 19 18 
$12 $10 $26 $25