Dte Energy Co 8-K/A, filed Jul 7, 2021
Dte Energy Co (DTE)
8-K/A
2021-07-07
For: 2021-06-25
View Original
Added on
April 10, 2026
About this 8-K/A
Dte Energy Co filed this 8-K/A on July 7, 2021, reporting on events of June 25, 2021.
Items reported
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________
FORM 8-K/A
(Amendment No. 1)
_____________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 1, 2021 (June 25, 2021 )
Commission File Number: 1-11607
| (State or other jurisdiction of incorporation or organization) | (I.R.S Employer Identification No.) | |||||||
Registrants address of principal executive offices: One Energy Plaza , Detroit , Michigan 48226-1279
Registrants telephone number, including area code: (313 ) 235-4000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class | Trading Symbol(s) | Name of Exchange on which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act (17 CFR 230.405) or Rule 12b-2 under Exchange Act (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Explanatory Note
This Amendment No. 1 to the Form 8-K filed July 1, 2021 (“the original Form 8-K”) amends the original Form 8-K to include pro forma financial information under Item 9.01(b). Except as provided herein, the disclosures made in the original Form 8-K remain unchanged.
Item 9.01. Financial Statements and Exhibits.
(b) Pro Forma Financial Information
The Unaudited Pro Forma Consolidated Statements of Financial Position of DTE Energy Company as of March 31, 2021 and the Unaudited Pro Forma Consolidated Statements of Operations of DTE Energy Company for the three months ended March 31, 2021 and each of the last three fiscal years ended December 31, 2020, 2019, and 2018, are filed as Exhibit 99.2 hereto.
(d) Exhibits
Unaudited Pro Forma Consolidated Financial Statements | |||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 7, 2021
| DTE Energy Company | |||||
| (Registrant) | |||||
/s/David Ruud David Ruud Senior Vice President and Chief Financial Officer | |||||
Exhibit 99.2
DTE Energy Company
Unaudited Pro Forma Consolidated Financial Statements
Separation Transaction
On July 1, 2021, DTE Energy (the "Company" or "DTE") completed the previously announced separation of its natural gas pipeline, storage and gathering non-utility business (the "Separation"). Separation of the new company, DT Midstream, Inc. ("DT Midstream"), was accomplished by the distribution of 96,732,466 shares of DT Midstream common stock to DTE shareholders (the "Distribution"). The Distribution reflected 100% of the outstanding common stock of DT Midstream as of 5:00 p.m. ET on the record date of June 18, 2021. DTE shareholders received one share of DT Midstream common stock for every two shares of DTE Energy common stock held at the close of business on the record date, with certain shareholders receiving cash in lieu of fractional shares of DT Midstream common stock. DT Midstream is now an independent public company under the symbol "DTM" on the New York Stock Exchange (NYSE). DTE Energy retains no ownership in DT Midstream.
For U.S. federal income tax purposes, DTE's U.S. shareholders generally should not recognize gain or loss as a result of the Distribution, except with respect to cash received in lieu of fractional shares.
Basis of Presentation
The following Unaudited Pro Forma Consolidated Statements of Operations of DTE Energy for the three months ended March 31, 2021 and for each of the three fiscal years ended December 31, 2020, 2019, and 2018 reflect DTE's results of operations as if the Separation had occurred on January 1, 2018. The following Unaudited Pro Forma Consolidated Statement of Financial Position of DTE Energy as of March 31, 2021 assumes that the Separation had occurred on that date. The unaudited pro forma consolidated financial information should be read in conjunction with the Consolidated Financial Statements, Combined Notes to Consolidated Financial Statements, and Management's Discussion and Analysis in the combined DTE Energy and DTE Electric Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and Quarterly Report on Form 10 -Q for the period ended March 31, 2021, which can be accessed through the Investor Relations SEC Filings page of DTE Energy's website at www.dteenergy.com. Beginning on July 1, 2021, DT Midstream's historical financial results for the periods prior to the Separation will be reflected in DTE's Consolidated Financial Statements as discontinued operations.
The Unaudited Pro Forma Consolidated Financial Statements are presented on information currently available and assumptions that we believe are reasonable. They are intended for illustrative purposes only, are not necessarily indicative of the operating results or financial position that would have been achieved had the Separation occurred on the dates indicated above, and do not reflect all actions that may be undertaken by us after the Separation of DT Midstream. In addition, the Unaudited Pro Forma Consolidated Financial Statements are not necessarily indicative of our results of operations and financial position for any future period.
The "Historical DTE Energy" column in the Unaudited Pro Forma Consolidated Financial Statements reflects our historical Consolidated Financial Statements for the periods presented, prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and does not reflect any adjustments to the Separation and Distribution and related transactions.
The adjustments included within the "Separation of DT Midstream" column of the Unaudited Pro Forma Consolidated Financial Statements are consistent with the guidance for discontinued operations, ASC 205, Presentation of Financial Statements - Discontinued Operations ("ASC 205"), under GAAP. This information was derived from our Consolidated Financial Statements and related accounting records for the three months ended March 31, 2021 and for each of the three fiscal years ended December 31, 2020, 2019, and 2018. The Company's current estimates on a discontinued operations basis are preliminary and could change as the Company finalizes discontinued operations accounting to be reported in the Company's Quarterly Report on Form 10-Q for the period ending September 30, 2021.
The unaudited pro forma consolidated financial information has been prepared in accordance with Article 11 of Regulation S-X as amended by final rule, Release No. 33-10786 "Amendments to Financial Disclosures about Acquired and Disposed Businesses".
Article 11 of Regulation S-X requires that pro forma financial information include the following pro forma adjustments to the historical financial information of the registrant as follows:
•Transaction Accounting Adjustments - Adjustments that reflect only the application of required accounting to the acquisition, disposition, or other transaction.
•Autonomous Entity Adjustments - Adjustments that are necessary to reflect the operations and financial position of the registrant as an autonomous entity when the registrant was previously part of another entity.
In addition, Regulation S-X permits registrants to reflect adjustments that depict synergies and dis-synergies of the acquisitions and dispositions for which pro forma effect is being given in our disclosures as management adjustments. We have determined not to disclose such adjustments because we do not believe presenting such adjustments would enhance an understanding of the pro forma effects of the transaction.
There are no autonomous entity adjustments included in the pro forma financial information.
The transaction accounting adjustments to reflect the Separation of DT Midstream in the Unaudited Pro Forma Consolidated Financial Statements include:
•Adjustments to revenue, expenses, assets, liabilities, and equity attributable to DT Midstream which were included in the Company's historical financial statements required to present it on a discontinued operations basis in accordance with ASC 205. Corporate expenses that were not specifically related to DT Midstream have been excluded, as such general corporate expenses do not meet the requirement to be presented in discontinued operations.
•Adjustments for intercompany activity between DTE Energy and DT Midstream to support the Separation.
•Adjustments to deferred income taxes representing the tax effect of temporary differences between the tax basis of assets and liabilities and the reported amounts to be transferred to DT Midstream.
DTE Energy Company
Pro Forma Consolidated Statements of Operations (Unaudited)
| Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||
| Historical DTE Energy | Separation of DT Midstream (A) | Transaction Accounting Adjustments | Note | Pro Forma DTE Energy | |||||||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||||||||
| Operating Revenues | |||||||||||||||||||||||||||||
| Utility operations | $ | 1,953 | $ | — | $ | — | $ | 1,953 | |||||||||||||||||||||
| Non-utility operations | 1,825 | (197) | — | 1,628 | |||||||||||||||||||||||||
| 3,778 | (197) | — | 3,581 | ||||||||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||||||||
| Fuel, purchased power, and gas — utility | 544 | — | — | 544 | |||||||||||||||||||||||||
| Fuel, purchased power, gas, and other — non-utility | 1,600 | (5) | — | 1,595 | |||||||||||||||||||||||||
| Operation and maintenance | 608 | (41) | 39 | (B) | 606 | ||||||||||||||||||||||||
| Depreciation and amortization | 368 | (41) | — | 327 | |||||||||||||||||||||||||
| Taxes other than income | 122 | (7) | — | 115 | |||||||||||||||||||||||||
| Asset (gains) losses and impairments, net | (1) | 1 | — | — | |||||||||||||||||||||||||
| 3,241 | (93) | 39 | 3,187 | ||||||||||||||||||||||||||
| Operating Income | 537 | (104) | (39) | 394 | |||||||||||||||||||||||||
| Other (Income) and Deductions | |||||||||||||||||||||||||||||
| Interest expense | 181 | (26) | — | 155 | |||||||||||||||||||||||||
| Interest income | (7) | 3 | — | (4) | |||||||||||||||||||||||||
| Non-operating retirement benefits, net | 4 | — | — | 4 | |||||||||||||||||||||||||
| Other income | (76) | 33 | — | (43) | |||||||||||||||||||||||||
| Other expenses | 10 | — | — | 10 | |||||||||||||||||||||||||
| 112 | 10 | — | 122 | ||||||||||||||||||||||||||
| Income Before Income Taxes | 425 | (114) | (39) | 272 | |||||||||||||||||||||||||
| Income Tax Expense | 28 | (34) | — | (6) | |||||||||||||||||||||||||
| Net Income | 397 | (80) | (39) | 278 | |||||||||||||||||||||||||
| Less: Net Income Attributable to Noncontrolling Interests | — | (3) | — | (3) | |||||||||||||||||||||||||
| Net Income Attributable to DTE Energy Company | $ | 397 | $ | (77) | $ | (39) | $ | 281 | |||||||||||||||||||||
| Basic Earnings per Common Share | |||||||||||||||||||||||||||||
| Net Income Attributable to DTE Energy Company | $ | 2.05 | $ | 1.45 | |||||||||||||||||||||||||
| Diluted Earnings per Common Share | |||||||||||||||||||||||||||||
| Net Income Attributable to DTE Energy Company | $ | 2.05 | $ | 1.45 | |||||||||||||||||||||||||
| Weighted Average Common Shares Outstanding | |||||||||||||||||||||||||||||
| Basic | 194 | 194 | |||||||||||||||||||||||||||
| Diluted | 194 | 194 | |||||||||||||||||||||||||||
DTE Energy Company
Pro Forma Consolidated Statements of Operations (Unaudited)
| Year Ended December 31, 2020 | |||||||||||||||||||||||||||||
| Historical DTE Energy | Separation of DT Midstream (A) | Transaction Accounting Adjustments | Note | Pro Forma DTE Energy | |||||||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||||||||
| Operating Revenues | |||||||||||||||||||||||||||||
| Utility operations | $ | 6,845 | $ | — | $ | — | $ | 6,845 | |||||||||||||||||||||
| Non-utility operations | 5,332 | (754) | — | 4,578 | |||||||||||||||||||||||||
| 12,177 | (754) | — | 11,423 | ||||||||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||||||||
| Fuel, purchased power, and gas — utility | 1,719 | — | — | 1,719 | |||||||||||||||||||||||||
| Fuel, purchased power, gas, and other — non-utility | 4,141 | (21) | — | 4,120 | |||||||||||||||||||||||||
| Operation and maintenance | 2,443 | (135) | — | 2,308 | |||||||||||||||||||||||||
| Depreciation and amortization | 1,443 | (151) | — | 1,292 | |||||||||||||||||||||||||
| Taxes other than income | 410 | (15) | — | 395 | |||||||||||||||||||||||||
| Asset (gains) losses and impairments, net | 35 | 2 | — | 37 | |||||||||||||||||||||||||
| 10,191 | (320) | — | 9,871 | ||||||||||||||||||||||||||
| Operating Income | 1,986 | (434) | — | 1,552 | |||||||||||||||||||||||||
| Other (Income) and Deductions | |||||||||||||||||||||||||||||
| Interest expense | 720 | (113) | — | 607 | |||||||||||||||||||||||||
| Interest income | (38) | 9 | — | (29) | |||||||||||||||||||||||||
| Non-operating retirement benefits, net | 50 | — | — | 50 | |||||||||||||||||||||||||
| Other income | (388) | 129 | — | (259) | |||||||||||||||||||||||||
| Other expenses | 104 | — | — | 104 | |||||||||||||||||||||||||
| 448 | 25 | — | 473 | ||||||||||||||||||||||||||
| Income Before Income Taxes | 1,538 | (459) | — | 1,079 | |||||||||||||||||||||||||
| Income Tax Expense | 167 | (130) | — | 37 | |||||||||||||||||||||||||
| Net Income | 1,371 | (329) | — | 1,042 | |||||||||||||||||||||||||
| Less: Net Income Attributable to Noncontrolling Interests | 3 | (12) | — | (9) | |||||||||||||||||||||||||
| Net Income Attributable to DTE Energy Company | $ | 1,368 | $ | (317) | $ | — | $ | 1,051 | |||||||||||||||||||||
| Basic Earnings per Common Share | |||||||||||||||||||||||||||||
| Net Income Attributable to DTE Energy Company | $ | 7.09 | $ | 5.44 | |||||||||||||||||||||||||
| Diluted Earnings per Common Share | |||||||||||||||||||||||||||||
| Net Income Attributable to DTE Energy Company | $ | 7.08 | $ | 5.44 | |||||||||||||||||||||||||
| Weighted Average Common Shares Outstanding | |||||||||||||||||||||||||||||
| Basic | 193 | 193 | |||||||||||||||||||||||||||
| Diluted | 193 | 193 | |||||||||||||||||||||||||||
DTE Energy Company
Pro Forma Consolidated Statements of Operations (Unaudited)
| Year Ended December 31, 2019 | |||||||||||||||||||||||||||||
| Historical DTE Energy | Separation of DT Midstream (A) | Transaction Accounting Adjustments | Note | Pro Forma DTE Energy | |||||||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||||||||
| Operating Revenues | |||||||||||||||||||||||||||||
| Utility operations | $ | 6,638 | $ | — | $ | — | $ | 6,638 | |||||||||||||||||||||
| Non-utility operations | 6,031 | (501) | — | 5,530 | |||||||||||||||||||||||||
| 12,669 | (501) | — | 12,168 | ||||||||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||||||||
| Fuel, purchased power, and gas — utility | 1,798 | — | — | 1,798 | |||||||||||||||||||||||||
| Fuel, purchased power, gas, and other — non-utility | 5,053 | (18) | — | 5,035 | |||||||||||||||||||||||||
| Operation and maintenance | 2,419 | (102) | — | 2,317 | |||||||||||||||||||||||||
| Depreciation and amortization | 1,263 | (94) | — | 1,169 | |||||||||||||||||||||||||
| Taxes other than income | 414 | (8) | — | 406 | |||||||||||||||||||||||||
| Asset (gains) losses and impairments, net | 15 | (1) | — | 14 | |||||||||||||||||||||||||
| 10,962 | (223) | — | 10,739 | ||||||||||||||||||||||||||
| Operating Income | 1,707 | (278) | — | 1,429 | |||||||||||||||||||||||||
| Other (Income) and Deductions | |||||||||||||||||||||||||||||
| Interest expense | 641 | (73) | — | 568 | |||||||||||||||||||||||||
| Interest income | (17) | 8 | — | (9) | |||||||||||||||||||||||||
| Non-operating retirement benefits, net | 39 | — | — | 39 | |||||||||||||||||||||||||
| Other income | (350) | 99 | — | (251) | |||||||||||||||||||||||||
| Other expenses | 70 | — | — | 70 | |||||||||||||||||||||||||
| 383 | 34 | — | 417 | ||||||||||||||||||||||||||
| Income Before Income Taxes | 1,324 | (312) | — | 1,012 | |||||||||||||||||||||||||
| Income Tax Expense | 152 | (82) | — | 70 | |||||||||||||||||||||||||
| Net Income | 1,172 | (230) | — | 942 | |||||||||||||||||||||||||
| Less: Net Income Attributable to Noncontrolling Interests | 3 | (16) | — | (13) | |||||||||||||||||||||||||
| Net Income Attributable to DTE Energy Company | $ | 1,169 | $ | (214) | $ | — | $ | 955 | |||||||||||||||||||||
| Basic Earnings per Common Share | |||||||||||||||||||||||||||||
| Net Income Attributable to DTE Energy Company | $ | 6.32 | $ | 5.16 | |||||||||||||||||||||||||
| Diluted Earnings per Common Share | |||||||||||||||||||||||||||||
| Net Income Attributable to DTE Energy Company | $ | 6.31 | $ | 5.15 | |||||||||||||||||||||||||
| Weighted Average Common Shares Outstanding | |||||||||||||||||||||||||||||
| Basic | 185 | 185 | |||||||||||||||||||||||||||
| Diluted | 185 | 185 | |||||||||||||||||||||||||||
DTE Energy Company
Pro Forma Consolidated Statements of Operations (Unaudited)
| Year Ended December 31, 2018 | |||||||||||||||||||||||||||||
| Historical DTE Energy | Separation of DT Midstream (A) | Transaction Accounting Adjustments | Note | Pro Forma DTE Energy | |||||||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||||||||
| Operating Revenues | |||||||||||||||||||||||||||||
| Utility operations | $ | 6,670 | $ | — | $ | — | $ | 6,670 | |||||||||||||||||||||
| Non-utility operations | 7,542 | (485) | — | 7,057 | |||||||||||||||||||||||||
| 14,212 | (485) | — | 13,727 | ||||||||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||||||||
| Fuel, purchased power, and gas — utility | 1,981 | — | — | 1,981 | |||||||||||||||||||||||||
| Fuel, purchased power, gas, and other — non-utility | 6,630 | (22) | — | 6,608 | |||||||||||||||||||||||||
| Operation and maintenance | 2,451 | (89) | — | 2,362 | |||||||||||||||||||||||||
| Depreciation and amortization | 1,124 | (82) | — | 1,042 | |||||||||||||||||||||||||
| Taxes other than income | 405 | (8) | — | 397 | |||||||||||||||||||||||||
| Asset (gains) losses and impairments, net | 27 | — | — | 27 | |||||||||||||||||||||||||
| 12,618 | (201) | — | 12,417 | ||||||||||||||||||||||||||
| Operating Income | 1,594 | (284) | — | 1,310 | |||||||||||||||||||||||||
| Other (Income) and Deductions | |||||||||||||||||||||||||||||
| Interest expense | 559 | (68) | — | 491 | |||||||||||||||||||||||||
| Interest income | (12) | 9 | — | (3) | |||||||||||||||||||||||||
| Non-operating retirement benefits, net | 37 | — | — | 37 | |||||||||||||||||||||||||
| Other income | (333) | 127 | — | (206) | |||||||||||||||||||||||||
| Other expenses | 127 | (7) | — | 120 | |||||||||||||||||||||||||
| 378 | 61 | — | 439 | ||||||||||||||||||||||||||
| Income Before Income Taxes | 1,216 | (345) | — | 871 | |||||||||||||||||||||||||
| Income Tax Expense | 98 | (76) | — | 22 | |||||||||||||||||||||||||
| Net Income | 1,118 | (269) | — | 849 | |||||||||||||||||||||||||
| Less: Net Income Attributable to Noncontrolling Interests | (2) | (28) | — | (30) | |||||||||||||||||||||||||
| Net Income Attributable to DTE Energy Company | $ | 1,120 | $ | (241) | $ | — | $ | 879 | |||||||||||||||||||||
| Basic Earnings per Common Share | |||||||||||||||||||||||||||||
| Net Income Attributable to DTE Energy Company | $ | 6.18 | $ | 4.84 | |||||||||||||||||||||||||
| Diluted Earnings per Common Share | |||||||||||||||||||||||||||||
| Net Income Attributable to DTE Energy Company | $ | 6.17 | $ | 4.84 | |||||||||||||||||||||||||
| Weighted Average Common Shares Outstanding | |||||||||||||||||||||||||||||
| Basic | 181 | 181 | |||||||||||||||||||||||||||
| Diluted | 181 | 181 | |||||||||||||||||||||||||||
DTE Energy Company
Pro Forma Consolidated Statements of Financial Position (Unaudited)
| Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||
| Historical DTE Energy | Separation of DT Midstream (A) | Transaction Accounting Adjustments | Note | Pro Forma DTE Energy | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Current Assets | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 1,568 | $ | (29) | $ | 5 | (C) | $ | 1,544 | ||||||||||||||||||||
| Restricted cash | 2 | — | — | 2 | |||||||||||||||||||||||||
| Accounts receivable, net | |||||||||||||||||||||||||||||
| Customer | 1,553 | (107) | — | 1,446 | |||||||||||||||||||||||||
| Affiliates - due from DTE Energy | — | (6) | 6 | (C) | — | ||||||||||||||||||||||||
| Other | 132 | 132 | |||||||||||||||||||||||||||
| Inventories | |||||||||||||||||||||||||||||
| Fuel and gas | 204 | — | — | 204 | |||||||||||||||||||||||||
| Materials, supplies, and other | 460 | (8) | — | 452 | |||||||||||||||||||||||||
| Derivative assets | 73 | — | — | 73 | |||||||||||||||||||||||||
| Regulatory assets | 117 | — | — | 117 | |||||||||||||||||||||||||
| Other | 267 | (40) | — | 227 | |||||||||||||||||||||||||
| 4,376 | (190) | 11 | 4,197 | ||||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||||||
| Nuclear decommissioning trust funds | 1,924 | — | — | 1,924 | |||||||||||||||||||||||||
| Investments in equity method investees | 1,856 | (1,683) | — | 173 | |||||||||||||||||||||||||
| Other | 197 | — | — | 197 | |||||||||||||||||||||||||
| 3,977 | (1,683) | — | 2,294 | ||||||||||||||||||||||||||
| Property | |||||||||||||||||||||||||||||
| Property, plant, and equipment | 38,430 | (4,000) | — | 34,430 | |||||||||||||||||||||||||
| Accumulated depreciation and amortization | (10,158) | 538 | — | (9,620) | |||||||||||||||||||||||||
| 28,272 | (3,462) | — | 24,810 | ||||||||||||||||||||||||||
| Other Assets | |||||||||||||||||||||||||||||
| Goodwill | 2,466 | (473) | — | 1,993 | |||||||||||||||||||||||||
| Regulatory assets | 4,070 | (3) | — | 4,067 | |||||||||||||||||||||||||
| Intangible assets | 2,318 | (2,125) | — | 193 | |||||||||||||||||||||||||
| Notes receivable | 304 | (18) | — | 286 | |||||||||||||||||||||||||
| Derivative assets | 37 | — | — | 37 | |||||||||||||||||||||||||
| Prepaid postretirement costs | 576 | — | — | 576 | |||||||||||||||||||||||||
| Operating lease right-of-use assets | 145 | (40) | — | 105 | |||||||||||||||||||||||||
| Other | 158 | (19) | — | 139 | |||||||||||||||||||||||||
| 10,074 | (2,678) | — | 7,396 | ||||||||||||||||||||||||||
| Total Assets | $ | 46,699 | $ | (8,013) | $ | 11 | $ | 38,697 | |||||||||||||||||||||
DTE Energy Company
Pro Forma Consolidated Statements of Financial Position (Unaudited) — (Continued)
| Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||
| Historical DTE Energy | Separation of DT Midstream (A) | Transaction Accounting Adjustments | Note | Pro Forma DTE Energy | |||||||||||||||||||||||||
| (In millions, except shares) | |||||||||||||||||||||||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||
| Current Liabilities | |||||||||||||||||||||||||||||
| Accounts payable | |||||||||||||||||||||||||||||
| Affiliates - due to DTE Energy | $ | — | $ | (11) | $ | 11 | (C) | $ | — | ||||||||||||||||||||
| Other | 955 | (19) | — | 936 | |||||||||||||||||||||||||
| Short-term borrowings due to DTE Energy | — | (2,770) | 2,770 | (D) | — | ||||||||||||||||||||||||
| Accrued interest | 169 | — | — | 169 | |||||||||||||||||||||||||
| Dividends payable | 210 | — | — | 210 | |||||||||||||||||||||||||
| Short-term borrowings | 52 | — | — | 52 | |||||||||||||||||||||||||
| Current portion long-term debt, including finance leases | 469 | — | — | 469 | |||||||||||||||||||||||||
| Derivative liabilities | 89 | — | — | 89 | |||||||||||||||||||||||||
| Gas inventory equalization | 68 | — | — | 68 | |||||||||||||||||||||||||
| Regulatory liabilities | 29 | — | — | 29 | |||||||||||||||||||||||||
| Operating lease liabilities | 33 | (18) | — | 15 | |||||||||||||||||||||||||
| Other | 521 | (43) | 39 | (B) | 517 | ||||||||||||||||||||||||
| 2,595 | (2,861) | 2,820 | 2,554 | ||||||||||||||||||||||||||
| Long-Term Debt (net of current portion) | |||||||||||||||||||||||||||||
| Mortgage bonds, notes, and other | 18,796 | — | (3,047) | (D) | 15,749 | ||||||||||||||||||||||||
| Junior subordinated debentures | 1,175 | — | — | 1,175 | |||||||||||||||||||||||||
| Finance lease liabilities | 22 | — | — | 22 | |||||||||||||||||||||||||
| 19,993 | — | (3,047) | 16,946 | ||||||||||||||||||||||||||
| Other Liabilities | |||||||||||||||||||||||||||||
| Deferred income taxes | 2,894 | (777) | — | 2,117 | |||||||||||||||||||||||||
| Regulatory liabilities | 3,416 | — | — | 3,416 | |||||||||||||||||||||||||
| Asset retirement obligations | 2,879 | (10) | — | 2,869 | |||||||||||||||||||||||||
| Unamortized investment tax credit | 160 | — | — | 160 | |||||||||||||||||||||||||
| Derivative liabilities | 119 | — | — | 119 | |||||||||||||||||||||||||
| Accrued pension liability | 773 | — | — | 773 | |||||||||||||||||||||||||
| Accrued postretirement liability | 404 | — | — | 404 | |||||||||||||||||||||||||
| Nuclear decommissioning | 295 | — | — | 295 | |||||||||||||||||||||||||
| Operating lease liabilities | 105 | (24) | — | 81 | |||||||||||||||||||||||||
| Other | 352 | (43) | — | 309 | |||||||||||||||||||||||||
| 11,397 | (854) | — | 10,543 | ||||||||||||||||||||||||||
| Commitments and Contingencies (Notes 6 and 13) | |||||||||||||||||||||||||||||
| Equity | |||||||||||||||||||||||||||||
| Common stock | 5,344 | — | — | 5,344 | |||||||||||||||||||||||||
| Retained earnings | 7,342 | (4,157) | 277 | (D) | 3,423 | ||||||||||||||||||||||||
| (39) | (B) | ||||||||||||||||||||||||||||
| Accumulated other comprehensive loss | (134) | 10 | — | (124) | |||||||||||||||||||||||||
| Total DTE Energy Company Equity | 12,552 | (4,147) | 238 | 8,643 | |||||||||||||||||||||||||
| Noncontrolling interests | 162 | (151) | — | 11 | |||||||||||||||||||||||||
| Total Equity | 12,714 | (4,298) | 238 | 8,654 | |||||||||||||||||||||||||
| Total Liabilities and Equity | $ | 46,699 | $ | (8,013) | $ | 11 | $ | 38,697 | |||||||||||||||||||||
NOTES TO THE UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
A.Reflects the discontinued operations, including associated assets, liabilities, and equity and results of operations attributable to DT Midstream which were included in the Company's historical financial statements. In accordance with ASC 205-20, Presentation of Financial Statements - Discontinued Operations, the amounts included adjustments for the following:
i.Exclusion of general corporate overhead costs which were historically allocated to DT Midstream that do not meet the requirements to be presented in discontinued operations. Such allocations included expenses related to labor and benefits, professional fees, shared assets and other expenses related to DTE Energy's corporate functions that historically provided support to DT Midstream
ii.Income tax related adjustments representing the Company's current estimates on a discontinued operations basis, which could materially change as the Company finalizes its discontinued operations accounting to be reported in the Quarterly Report on Form 10-Q for the three months ended September 30, 2021 and the Annual Report on Form 10-K for the year ended December 31, 2021
B.Subsequent to March 31, 2021, DTE Energy anticipates it will incur additional non-recurring costs of approximately $39 million to complete the Separation. These costs primarily relate to transaction advisory and professional fees associated with the Separation. The Unaudited Pro Forma Consolidated Statement of Financial Position as of March 31, 2021 has been adjusted to record estimated separation costs of $39 million in Other current liabilities with a corresponding decrease to Retained earnings. The Unaudited Pro Forma Consolidated Statement of Operations for the three months ended March 31, 2021 has been adjusted to record estimated separation costs of $39 million in Operation & maintenance expenses.
C.Adjustments represent the settlement of intercompany Accounts Receivable and Accounts Payable between DTE Energy and DT Midstream in conjunction with the Separation.
D.Pursuant to the Separation and Distribution Agreement between DTE Energy and DT Midstream, DT Midstream incurred indebtedness in June 2021 in the form of senior notes and a term loan for net proceeds of $3,047 million in order to settle DT Midstream's short-term borrowings due to DTE Energy. The settlement has been reflected through the following adjustments:
i.the repayment of DT Midstream's short-term borrowings due to DTE Energy as of March 31, 2021 of $2,770 million
ii.estimated dividend for the remainder of DT Midstream debt proceeds to DTE Energy of $277 million
iii.assumed repayment of certain DTE Energy long-term debt with the proceeds received from DT Midstream as described in i) and ii) above