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Table of Contents


The effects of derivative instruments recoverable through the PSCR mechanism when realized on the Consolidated Statements of Financial Position were
$15 million in unrealized gains related to FTRs recognized in Regulatory liabilities for the year ended December 31, 2012, and $3 million in unrealized gains
related to FTRs recognized in Regulatory liabilities, for the year ended December 31, 2011.
The following represents the cumulative gross volume of derivative contracts outstanding as of December 31, 2012:


Natural Gas (MMBtu)
663,194,602
Electricity (MWh)
48,524,412
Foreign Currency Exchange ($ CAD)
10,838,396
FTR (MWh)
11,077,483
Various non-utility subsidiaries of the Company have entered into contracts which contain ratings triggers and are guaranteed by DTE Energy. These
contracts contain provisions which allow the counterparties to request that the Company post cash or letters of credit as collateral in the event that DTE
Energy’s credit rating is downgraded below investment grade. Certain of these provisions (known as “hard triggers”) state specific circumstances under which
the Company can be asked to post collateral upon the occurrence of a credit downgrade, while other provisions (known as “soft triggers”) are not as specific.
For contracts with soft triggers, it is difficult to estimate the amount of collateral which may be requested by counterparties and/or which the Company may
ultimately be required to post. The amount of such collateral which could be requested fluctuates based on commodity prices (primarily gas, power and coal)
and the provisions and maturities of the underlying transactions. As of December 31, 2012, the value of the transactions for which the Company would have
been exposed to collateral requests had DTE Energy’s credit rating been below investment grade on such date under both hard trigger and soft trigger
provisions was approximately $326 million.

The Company has goodwill resulting from purchase business combinations.
The change in the carrying amount of goodwill for the fiscal years ended December 31, 2012 and 2011 is as follows:



Balance as of January 1 
$2,020
Goodwill attributable to sale of Unconventional Gas Production business 
—
Balance at December 31 
$2,020

In July 2012, the Company executed an agreement to purchase a portfolio of fourteen on-site energy projects, primarily located in the Midwest, from
subsidiaries of Duke Energy Corporation and GDF Suez Energy North America, Inc. This acquisition provides a growth opportunity for the Company's
Power and Industrial Projects segment that will leverage its extensive energy-related operating experience and project management capabilities.
Closing for all of the entities occurred in the fourth quarter 2012. The purchase of equity interests range from 46 percent to 100 percent of the project
companies for a total purchase price of approximately $ 294 million, which consists of $220 million paid in cash and assumption of approximately $ 74
million of debt. The debt assumed relates to two project companies which have been deemed variable interest entities. DTE, however, is not the primary
beneficiary and thus the VIEs' assets and liabilities are not included in the Company's Consolidated Statements of Financial Position. Therefore, the assumed
debt is not included in the purchase price allocation table below. There is no exposure to loss related to the debt assumed as the customer of the project
companies is obligated to pay the loans in the event of default or termination. See Note 1.
The Company has completed its valuation analysis and calculations in sufficient detail necessary to arrive at the fair value of the project company
assets acquired and liabilities assumed, along with the related allocation to intangible assets.
The allocation of the total consideration transferred in the acquisition to the assets acquired and liabilities assumed includes adjustments for the fair value of
existing contracts and agreements and property, plant and equipment. The fair value of the assets acquired and liabilities assumed have been determined based
on the accounting guidance for fair value measurements in
71