DTE Energy 2014 Annual Report Download - page 81



The costs of securities sold are determined on the basis of specific identification. The following table sets forth the gains and losses and proceeds from
the sale of securities by the nuclear decommissioning trust funds:





Realized gains  
$ 83
$ 37
Realized losses  
$ (41)
$ (31)
Proceeds from sales of securities  
$ 1,118
$ 759
Realized gains and losses from the sale of securities for the Fermi 2 and the low level radioactive waste funds are recorded to the Regulatory asset and
Nuclear decommissioning liability. The following table sets forth the fair value and unrealized gains for the nuclear decommissioning trust funds:













Equity securities  
 
 
$ 730
$ 201
$ (25)
Debt securities 


442
12
(6)
Cash and cash equivalents 


19
—
—
 
   
$ 1,191
$ 213 $ (31)
At December 31, 2014, investments in the nuclear decommissioning trust funds consisted of approximately 61% in publicly traded equity securities,
38% in fixed debt instruments and 1% in cash equivalents. At December 31, 2013, investments in the nuclear decommissioning trust funds consisted of
approximately 61% in publicly traded equity securities, 37% in fixed debt instruments and 2% in cash equivalents.
The debt securities at December 31, 2014 and 2013 had an average maturity of approximately 7 years. Securities held in the nuclear decommissioning
trust funds are classified as available-for-sale. As DTE Electric does not have the ability to hold impaired investments for a period of time sufficient to allow
for the anticipated recovery of market value, all unrealized losses are considered to be other-than-temporary impairments.
Unrealized losses incurred by the Fermi 2 trust are recognized as a Regulatory asset.

At December 31, 2014 and 2013, these securities are comprised primarily of money-market and equity securities. During the years ended December 31,
2014 and 2013, no amounts of unrealized losses on available-for-sale securities were reclassified out of other comprehensive income and realized into net
income for the periods. Gains related to trading securities held at December 31, 2014, 2013 and 2012 were $14 million, $22 million and $11 million,
respectively.

The Company recognizes all derivatives at their fair value as Derivative assets or liabilities on the Consolidated Statements of Financial Position unless
they qualify for certain scope exceptions, including the normal purchases and normal sales exception. Further, derivatives that qualify and are designated for
hedge accounting are classified as either hedges of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset
or liability (cash flow hedge), or as hedges of the fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge). For
cash flow hedges, the portion of the derivative gain or loss that is effective in offsetting the change in the value of the underlying exposure is deferred in
Accumulated other comprehensive income and later reclassified into earnings when the underlying transaction occurs. Gains or losses from the ineffective
portion of cash flow hedges are recognized in earnings immediately. For fair value hedges, changes in fair values for the derivative and hedged item are
recognized in earnings each period. For derivatives that do not qualify or are not designated for hedge accounting, changes in the fair value are recognized in
earnings each period.
78