DTE Energy 2014 Annual Report Download - page 63
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Please find page 63 of the 2014 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.-
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The Company has certain intangible assets relating to emission allowances, renewable energy credits and non-utility contracts as shown below:
Emission allowances
$ 2
Renewable energy credits
51
Contract intangible assets
126
179
Less accumulated amortization
45
Intangible assets, net
134
Less current intangible assets
12
$ 122
Emission allowances and renewable energy credits are charged to expense, using average cost, as the allowances and credits are consumed in the
operation of the business. The Company amortizes contract intangible assets on a straight-line basis over the expected period of benefit, ranging from 1 to 27
years. Intangible assets amortization expense was $12 million in 2014, $14 million in 2013 and $6 million in 2012.
The following table summarizes the estimated amortization expense expected to be recognized during each year through 2019:
2015 $ 12
2016 $ 11
2017 $ 8
2018 $ 8
2019 $ 6
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.
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 utility 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.
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 11 of the Consolidated Financial Statements,
"Fair Value".
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