DTE Energy 2012 Annual Report Download - page 64

Table of Contents
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Excise and Sales Taxes
The Company records the billing of excise and sales taxes as a receivable with an offsetting payable to the applicable taxing authority, with no net impact
on the Consolidated Statements of Operations.
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
applicable to the Company’s electric and gas utilities, the unamortized discount, premium and expense related to debt redeemed with a refinancing are
amortized over the life of the replacement issue. Discount, premium and expense on early redemptions of debt associated with non-utility operations are charged
to earnings.
Investments in Debt and Equity Securities
The Company generally classifies investments in debt and equity securities as either trading or available-for-sale and has recorded such investments at
market value with unrealized gains or losses included in earnings or in other comprehensive income or loss, respectively. Changes in the fair value of Fermi 2
nuclear decommissioning investments are recorded as adjustments to regulatory assets or liabilities, due to a recovery mechanism from customers. The
Company’s equity investments are reviewed for impairment each reporting period. If the assessment indicates that the impairment is other than temporary, a
loss is recognized resulting in the equity investment being written down to its estimated fair value. See Note 3.
Offsetting Amounts Related to Certain Contracts
The Company offsets the fair value of derivative instruments with cash collateral received or paid for those derivative instruments executed with the
same counterparty under a master netting agreement, which reduces the Company’s total assets and total liabilities. As of December 31, 2012, the total cash
collateral received, net of cash collateral posted, was $ 20 million. As of December 31, 2011, the total cash collateral posted, net of cash collateral received, was
$71 million. There was no collateral related to unrealized positions to net against derivative assets and liabilities as of December 31, 2012. At December 31,
2011, derivative assets and derivative liabilities were shown net of collateral of $ 19 million and $74 million, respectively. The Company recorded cash
collateral paid of $4 million and cash collateral received of $24 million not related to unrealized derivative positions as of December 31, 2012. The Company
recorded cash collateral paid of $16 million not related to unrealized derivative positions, as of December 31, 2011. These amounts are included in accounts
receivable and accounts payable and are recorded net by counterparty.
Government Grants
Grants are recognized when there is reasonable assurance that the grant will be received and that any conditions associated with the grant will be met.
When grants are received related to Property, Plant and Equipment, the Company reduces the basis of the assets on the Consolidated Statements of Financial
Position, resulting in lower depreciation expense over the life of the associated asset. Grants received related to expenses are reflected as a reduction of the
associated expense in the period in which the expense is incurred.
DTE Energy Foundation
Charitable contributions to the DTE Energy Foundation were $ 21 million, $21 million, and $14 million for the years ended December 31, 2012, 2011
and 2010, respectively. The DTE Energy Foundation is a non-consolidated not-for-profit private foundation, the purpose of which is to contribute and assist
charitable organizations and does not serve a direct business or political purpose of DTE.
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