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Schedule I - Condensed Financial Information of Registrant | 12 Months Ended
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Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract] |
Schedule I - Condensed Financial Information of Registrant | Condensed Statements of Income
In Millions
Years Ended December 31 | 2021 | 2020 | 2019
Operating Expenses |  |  |  |  |  |
Other operating expenses |  | $ | (7) |  |  | $ | (6) |  |  | $ | (38) |
Total operating expenses |  | (7) |  |  | (6) |  |  | (38) |
Operating Loss |  | (7) |  |  | (6) |  |  | (38) |
Other Income (Expense) |  |  |  |  |  |
Equity earnings of subsidiaries |  | 1,482 |  |  | 909 |  |  | 826 |
Nonoperating retirement benefits, net |  | (1) |  |  | (1) |  |  | (1) |
Interest income |  | 1 |  |  | 1 |  |  | 1 |
Other income |  | 1 |  |  | 1 |  |  | 1 |
Other expense |  | — |  |  | (19) |  |  | — |
Total other income |  | 1,483 |  |  | 891 |  |  | 827 |
Interest Charges |  |  |  |  |  |
Interest on long-term debt |  | 183 |  |  | 178 |  |  | 156 |
Intercompany interest expense and other |  | 7 |  |  | 7 |  |  | 10 |
Total interest charges |  | 190 |  |  | 185 |  |  | 166 |
Income Before Income Taxes |  | 1,286 |  |  | 700 |  |  | 623 |
Income Tax Benefit |  | (60) |  |  | (55) |  |  | (57) |
Income From Continuing Operations |  | 1,346 |  |  | 755 |  |  | 680 |
Income From Discontinued Operations, Net of Tax of $(5), $—, and $— |  | 7 |  |  | — |  |  | — |
Net Income Attributable to CMS Energy |  | 1,353 |  |  | 755 |  |  | 680 |
Preferred Stock Dividends |  | 5 |  |  | — |  |  | — |
Net Income Available to Common Stockholders |  | $ | 1,348 |  |  | $ | 755 |  |  | $ | 680 |
The accompanying notes are an integral part of these statements. (Continued) CMS Energy—Parent Company Condensed Statements of Cash Flows
In Millions
Years Ended December 31 | 2021 | 2020 | 2019
Cash Flows from Operating Activities |  |  |  |  |  |
Net cash provided by operating activities |  | $ | 1,549 |  |  | $ | 507 |  |  | $ | 697 |
Cash Flows from Investing Activities |  |  |  |  |  |
Investment in subsidiaries |  | (581) |  |  | (657) |  |  | (683) |
Increase in notes receivable – intercompany |  | (83) |  |  | (307) |  |  | — |
Net cash used in investing activities |  | (664) |  |  | (964) |  |  | (683) |
Cash Flows from Financing Activities |  |  |  |  |  |
Proceeds from issuance of debt |  | — |  |  | 1,225 |  |  | 1,158 |
Issuance of common stock |  | 26 |  |  | 253 |  |  | 12 |
Issuance of preferred stock |  | 224 |  |  | — |  |  | — |
Retirement of long-term debt |  | (200) |  |  | (425) |  |  | (738) |
Debt prepayment costs |  | — |  |  | (16) |  |  | — |
Payment of dividends on common and preferred stock |  | (507) |  |  | (465) |  |  | (434) |
Debt issuance costs and financing fees |  | (10) |  |  | (10) |  |  | (18) |
Change in notes payable – intercompany |  | (28) |  |  | (105) |  |  | 6 |
Net cash provided by (used in) financing activities |  | (495) |  |  | 457 |  |  | (14) |
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts |  | 390 |  |  | — |  |  | — |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period |  | — |  |  | — |  |  | — |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period |  | $ | 390 |  |  | $ | — |  |  | $ | — |
The accompanying notes are an integral part of these statements. (Continued) CMS Energy—Parent Company Condensed Balance Sheets
ASSETS
In Millions
December 31 | 2021 | 2020
Current Assets |  |  |  |
Cash and cash equivalents |  | $ | 390 |  |  | $ | — |
Notes and accrued interest receivable – intercompany |  | 463 |  |  | 358 |
Accounts receivable – intercompany and related parties |  | 5 |  |  | 3 |
Accrued taxes |  | — |  |  | 48 |
Prepayments and other current assets |  | 1 |  |  | 1 |
Total current assets |  | 859 |  |  | 410 |
Other Non‑current Assets |  |  |  |
Deferred income taxes |  | 147 |  |  | 91 |
Investments in subsidiaries |  | 9,870 |  |  | 9,372 |
Other investments |  | 6 |  |  | 5 |
Other |  | 8 |  |  | 5 |
Total other non‑current assets |  | 10,031 |  |  | 9,473 |
Total Assets |  | $ | 10,890 |  |  | $ | 9,883 |
LIABILITIES AND EQUITY
In Millions
December 31 | 2021 | 2020
Current Liabilities |  |  |  |
Current portion of long-term debt |  | $ | — |  |  | $ | 200 |
Accounts and notes payable – intercompany |  | 61 |  |  | 69 |
Accrued interest, including intercompany |  | 33 |  |  | 33 |
Accrued taxes |  | 83 |  |  | — |
Other current liabilities |  | 8 |  |  | 9 |
Total current liabilities |  | 185 |  |  | 311 |
Non‑current Liabilities |  |  |  |
Long-term debt |  | 3,928 |  |  | 3,926 |
Notes payable – intercompany |  | 112 |  |  | 116 |
Postretirement benefits |  | 19 |  |  | 21 |
Other non‑current liabilities |  | 15 |  |  | 13 |
Total non‑current liabilities |  | 4,074 |  |  | 4,076 |
Equity |  |  |  |
Common stockholders’ equity |  | 6,407 |  |  | 5,496 |
Preferred stock |  | 224 |  |  | — |
Total equity |  | 6,631 |  |  | 5,496 |
Total Liabilities and Equity |  | $ | 10,890 |  |  | $ | 9,883 |
The accompanying notes are an integral part of these statements. Basis of PresentationCMS Energy’s condensed financial statements have been prepared on a parent-only basis. In accordance with Rule 12-04 of Regulation S-X, these parent-only financial statements do not include all of the information and notes required by GAAP for annual financial statements, and therefore these parent-only financial statements and other information included should be read in conjunction with CMS Energy’s audited consolidated financial statements contained within Item 8. Financial Statements and Supplementary Data.Guarantees CMS Energy has issued guarantees with a maximum potential obligation of $633 million on behalf of some of its wholly owned subsidiaries and related parties. CMS Energy’s maximum potential obligation consists primarily of potential payments: •to third parties under certain commodity purchase and swap agreements entered into with CMS ERM •to third parties under certain agreements entered into with Grand River Wind, LLC, a wholly owned subsidiary of CMS Enterprises •to EGLE on behalf of CMS Land and CMS Capital, for environmental remediation obligations at Bay Harbor •to the U.S. Department of Energy on behalf of Consumers, in connection with Consumers’ 2011 settlement agreement with the U.S. Department of Energy regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers •to a tax equity investor under certain agreements in connection with the purchase of a VIE •to Regions Bank related to the sale of EnerBank The expiry dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law. Note Payable—IntercompanyCMS Energy has a demand note payable to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. This note payable is not recorded at fair value; however, its carrying value approximates fair value at December 31, 2021. This fair value measurement is classified in Level 3 within the fair value hierarchy.Preferred Stock In 2021, CMS Energy issued 9.2 million depositary shares, each representing a 1/1,000th interest in a share of its cumulative Series C preferred stock, traded on the New York Stock Exchange under the symbol CMS PRC, at a price of $25.00 per depositary share. The transaction resulted in net proceeds of $224 million, which was used for general corporate purposes. Dividends on the preferred stock accumulate at an annual rate of 4.200 percent and are payable quarterly. The Series C preferred stock has no maturity or mandatory redemption date and is not redeemable at the option of the holders. CMS Energy may, at its option, redeem the Series C preferred stock, in whole or in part, at a price equal to $25,000 per share (equivalent to $25.00 per depositary share), plus accumulated and unpaid dividends, at any time on or after July 15, 2026. The Series C preferred stock ranks senior to CMS Energy’s common stock with respect to dividend rights and distribution rights upon liquidation.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -URI http://asc.fasb.org/extlink&oid=120391182&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=123454820&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690 + Details
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