DTE Energy 2009 Annual Report Download - page 27

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25
expense in relation to income tax for the years ended December 31, 2009 and an immaterial amount for the year ended December 31,
2008.
In 2009, DTE Energy and its subsidiaries settled a federal tax audit for the 2004 through 2006 tax years. The resulting change to
unrecognized tax benefits was not significant. The Company’ s U.S. federal income tax returns for years 2007 and subsequent years
remain subject to examination by the IRS. The Company’ s Michigan Business Tax for the year 2008 is subject to examination by the
State of Michigan. The Company also files tax returns in various local jurisdictions with varying statutes of limitation.
Michigan Business Tax
In July 2007, the Michigan Business Tax (MBT) was enacted by the State of Michigan to replace the Michigan Single Business Tax
(MSBT) effective January 1, 2008. The MBT is comprised of an apportioned modified gross receipts tax of 0.8 percent and an
apportioned business income tax of 4.95 percent. The MBT provides credits for Michigan business investment, compensation, and
research and development. Legislation was also enacted, in 2007, by the State of Michigan creating a deduction for businesses that
realize an increase in their deferred tax liability due to the enactment of the MBT. The MBT is accounted for as an income tax.
The MBT consolidated deferred tax liability balance is $64 million as of December 31, 2009 and is reported net of the related federal
tax benefit. The MBT deferred tax asset balance is $56 million as of December 31, 2009 and is reported net of the related federal
deferred tax liability. The regulated asset balance is $64 million and the regulated liability balance is $56 million as of December 31,
2009 and is further discussed in Note 9.
NOTE 11 — LONG-TERM DEBT AND PREFERRED SECURITIES
Long-Term Debt
Our long-term debt outstanding and interest rates of debt outstanding at December 31 were:
(in Millions)
2009
2008
First Mortgage Bonds, interest payable semi-annually
7.06% series due 2012
$ 40
$ 40
8.25% series due 2014
80
80
Senior notes, interest payable semi-annually
5.26% series due 2013
60
60
5.94% series due 2015
140
140
6.04% series due 2018
100
100
5.00% series due 2019
120
120
6.36% series due 2020
50
50
6.44% series due 2023
25
25
6.78% series due 2028
75
75
5.70% series due 2033
200
200
890
890
Less: unamortized discount
(1)
(1)
Total
$ 889
$ 889
Substantially all of our net utility property is subject to the lien of our mortgage. Should the Company fail to timely pay its
indebtedness under the mortgage, such failure may create cross defaults in the indebtedness of DTE Energy.
The following table shows the scheduled debt maturities and sinking fund requirements, excluding any unamortized discount or
premium on debt:
(in Millions)
2010
2011
2012
2013
2014
2015 and
thereafter
Total
Amount to mature
$ —
$—
$ 40
$ 60
$ 80
$ 710
$ 890