DTE Energy 2010 Annual Report Download - page 15

Download and view the complete annual report

Please find page 15 of the 2010 DTE Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 39

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39

13
Deferred Debt Costs
The costs related to the issuance of long-term debt are deferred and amortized over the life of each debt issue. In accordance with
MPSC regulations, the unamortized discount, premium and expense related to debt redeemed with a refinancing are amortized over
the life of the replacement issue.
Investments in Debt and Equity Securities
The Company generally classifies investments in debt and equity securities as trading and has recorded such investments at market
value with unrealized gains or losses included in earnings.
Stock-Based Compensation
The Company received an allocation of costs from DTE Energy associated with stock-based compensation. Our allocation for 2010,
2009 and 2008 for stock-based compensation expense was approximately $7 million, $7 million and $5 million, respectively.
Asset Gains, net
In 2009, MichCon sold certain gathering and processing assets resulting in a gain of $21 million and recognized a gain of $9 million
on the sale of base gas. In 2008, MichCon sold base gas resulting in a gain of $22 million and recognized a gain on the sale of land of
$2 million. Proceeds from each of the base gas sales were received in January of the subsequent year.
Subsequent Events
The Company has evaluated subsequent events through March 17, 2011, the date that these financial statements were available to be
issued.
Other Accounting Policies
See the following notes for other accounting policies impacting the Company’ s consolidated financial statements:
Note
Title
3
New Accounting Pronouncements
4
Fair Value
5
Financial and Other Derivative Instruments
7
Asset Retirement Obligation
9
Regulatory Matters
10
Income Taxes
15
Retirement Benefits and Trusteed Assets
NOTE 3 — NEW ACCOUNTING PRONOUNCEMENTS
Variable Interest Entity
In June 2009, the FASB issued ASU 2009-17, Amendments to FASB Interpretation 46(R). This standard amends the consolidation
guidance that applies to VIEs and affects the overall consolidation analysis under ASC 810-10, Consolidation. The amendments to the
consolidation guidance affect all entities and enterprises currently within the scope of ASC 810-10, as well as qualifying special
purpose entities that are currently outside the scope of ASC 810-10. Accordingly, the Company reconsidered its previous ASC 810-10
conclusions, including (1) whether an entity is a VIE, (2) whether the enterprise is the VIE’ s primary beneficiary, and (3) what type of
financial statement disclosures are required. ASU 2009-17 is effective as of the beginning of the first fiscal year that begins after
November 15, 2009. The adoption of ASU 2009-17 on January 1, 2010 had no impact on the Consolidated Financial Statements. See
Note 1.