DTE Energy 2009 Annual Report Download - page 13

11
Comprehensive Income (Loss)
Comprehensive income (loss) is the change in Common shareholder’s equity during a period from transactions and events from non-
owner sources, including net income.
(in Millions)
Net
Unrealized
Gains on
Derivatives
Benefit
Obligations
Accumulated
Other
Comprehensive
Loss
December 31, 2008
$ (1)
$ (1)
$ (2)
Current period change
—
—
—
December 31, 2009
$ (1)
$ (1)
$ (2)
Cash Equivalents
Cash and cash equivalents include cash on hand, cash in banks and temporary investments purchased with remaining maturities of
three months or less.
Receivables
Accounts receivable are primarily composed of trade receivables and unbilled revenue. Our accounts receivable are stated at net
realizable value.
The allowance for doubtful accounts is generally calculated using the aging approach that utilizes rates developed in reserve studies.
The Company establishes an allowance for uncollectible accounts based on historical losses and management’s assessment of existing
economic conditions, customer trends, and other factors. Customer accounts are generally considered delinquent if the amount billed
is not received by the due date, typically 21 days, however, factors such as assistance programs may delay aggressive action. MichCon
assesses late payment fees on trade receivables based on contractual past-due terms established with customers. Customer accounts
are written off when collection efforts have been exhausted, generally one year after service has been terminated.
Unbilled revenues of $171 million and $189 million are included in customer accounts receivable at December 31, 2009 and 2008,
respectively.
Inventories
MichCon generally values materials and supplies at average cost.
Gas inventory of $44 million and $14 million as of December 31, 2009 and 2008, respectively, is determined using the last-in, first-
out (LIFO) method. At December 31, 2009, the replacement cost of gas remaining in storage exceeded the LIFO cost by $218 million.
At December 31, 2008, the replacement cost of gas remaining in storage exceeded the LIFO cost by $232 million. During 2008,
MichCon liquidated 4.2 Bcf prior years’ LIFO layers. The liquidation reduced 2008 cost of gas by approximately $21 million, but had
no impact on earnings as a result of the GCR mechanism.
Gas Customer Choice Deferred Asset
Gas Customer Choice Deferred Asset represents gas provided to MichCon by suppliers of gas for customers that participate in the
Customer Choice program. As the gas is sold and billed to Customer Choice customers, primarily in the December through March
heating season, this asset is reduced. At the end of an April through March cycle each year, any balance is reconciled and settled with
the various suppliers.