2015 Q1 Form 10-Q Financial Statement

#000093634015000075 Filed on April 24, 2015

View on sec.gov

Income Statement

Concept 2015 Q1 2014 Q1
Revenue $2.984B $3.930B
YoY Change -24.07% 56.2%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $209.0M $280.0M
YoY Change -25.36% 8.11%
% of Gross Profit
Operating Expenses $2.512B $3.391B
YoY Change -25.92% 60.56%
Operating Profit $461.0M $560.0M
YoY Change -17.68% 36.59%
Interest Expense $110.0M $110.0M
YoY Change 0.0% 0.92%
% of Operating Profit 23.86% 19.64%
Other Income/Expense, Net -$65.00M -$75.00M
YoY Change -13.33% 7.14%
Pretax Income $396.0M $485.0M
YoY Change -18.35% 42.65%
Income Tax $122.0M $158.0M
% Of Pretax Income 30.81% 32.58%
Net Earnings $273.0M $326.0M
YoY Change -16.26% 39.32%
Net Earnings / Revenue 9.15% 8.3%
Basic Earnings Per Share $1.53 $1.84
Diluted Earnings Per Share $1.53 $1.84
COMMON SHARES
Basic Shares Outstanding 178.0M shares 177.0M shares
Diluted Shares Outstanding 178.0M shares 177.0M shares

Balance Sheet

Concept 2015 Q1 2014 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $99.00M $98.00M
YoY Change 1.02% -55.05%
Cash & Equivalents $99.00M $98.00M
Short-Term Investments
Other Short-Term Assets $312.0M $178.0M
YoY Change 75.28% 12.66%
Inventory $633.0M $480.0M
Prepaid Expenses
Receivables $1.534B $1.811B
Other Receivables $73.00M $140.0M
Total Short-Term Assets $2.788B $2.973B
YoY Change -6.22% 7.37%
LONG-TERM ASSETS
Property, Plant & Equipment $17.24B $15.99B
YoY Change 7.82% 7.53%
Goodwill $2.018B $2.018B
YoY Change 0.0% 0.0%
Intangibles $110.0M $131.0M
YoY Change -16.03% -2.96%
Long-Term Investments $1.951B $1.808B
YoY Change 7.91% 8.39%
Other Assets $245.0M $193.0M
YoY Change 26.94% -1.53%
Total Long-Term Assets $6.134B $5.412B
YoY Change 13.34% -18.78%
TOTAL ASSETS
Total Short-Term Assets $2.788B $2.973B
Total Long-Term Assets $6.134B $5.412B
Total Assets $28.07B $26.16B
YoY Change 7.29% 0.82%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $825.0M $945.0M
YoY Change -12.7% 32.91%
Accrued Expenses $116.0M $118.0M
YoY Change -1.69% -4.07%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $375.0M
YoY Change -100.0%
Long-Term Debt Due $166.0M $1.069B
YoY Change -84.47% 27.26%
Total Short-Term Liabilities $1.839B $3.569B
YoY Change -48.47% 44.14%
LONG-TERM LIABILITIES
Long-Term Debt $8.348B $6.438B
YoY Change 29.67% -1.38%
Other Long-Term Liabilities $247.0M $266.0M
YoY Change -7.14% -5.34%
Total Long-Term Liabilities $8.713B $7.532B
YoY Change 15.68% -12.65%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.839B $3.569B
Total Long-Term Liabilities $8.713B $7.532B
Total Liabilities $10.55B $11.10B
YoY Change -4.95% 0.02%
SHAREHOLDERS EQUITY
Retained Earnings $4.727B $4.360B
YoY Change 8.42% 7.15%
Common Stock $4.093B $3.894B
YoY Change 5.11% 5.73%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $8.665B $8.117B
YoY Change
Total Liabilities & Shareholders Equity $28.07B $26.16B
YoY Change 7.29% 0.82%

Cashflow Statement

Concept 2015 Q1 2014 Q1
OPERATING ACTIVITIES
Net Income $273.0M $326.0M
YoY Change -16.26% 39.32%
Depreciation, Depletion And Amortization $209.0M $280.0M
YoY Change -25.36% 8.11%
Cash From Operating Activities $747.0M $532.0M
YoY Change 40.41% -10.89%
INVESTING ACTIVITIES
Capital Expenditures -$405.0M -$497.0M
YoY Change -18.51% 30.1%
Acquisitions
YoY Change
Other Investing Activities -$3.000M $10.00M
YoY Change -130.0% 42.86%
Cash From Investing Activities -$556.0M -$442.0M
YoY Change 25.79% 33.13%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$9.000M $50.00M
YoY Change -118.0% -600.0%
Debt Paid & Issued, Net $117.0M $115.0M
YoY Change 1.74% -18.44%
Cash From Financing Activities -$140.0M -$44.00M
YoY Change 218.18% -60.71%
NET CHANGE
Cash From Operating Activities $747.0M $532.0M
Cash From Investing Activities -$556.0M -$442.0M
Cash From Financing Activities -$140.0M -$44.00M
Net Change In Cash $51.00M $46.00M
YoY Change 10.87% -69.93%
FREE CASH FLOW
Cash From Operating Activities $747.0M $532.0M
Capital Expenditures -$405.0M -$497.0M
Free Cash Flow $1.152B $1.029B
YoY Change 11.95% 5.11%

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CY2014Q1 us-gaap Effective Income Tax Rate Continuing Operations
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0.33
CY2015Q1 us-gaap Effective Income Tax Rate Continuing Operations
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0.31
CY2015Q1 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
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81000000 USD
CY2015Q1 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
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P1Y8M19D
CY2014Q4 us-gaap Energy Related Inventory
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512000000 USD
CY2015Q1 us-gaap Energy Related Inventory
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333000000 USD
CY2015Q1 us-gaap Extinguishment Of Debt Amount
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117000000 USD
CY2014Q1 us-gaap Fair Value Assets Level1 To Level2 Transfers Amount
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0 USD
CY2015Q1 us-gaap Fair Value Assets Level1 To Level2 Transfers Amount
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0 USD
CY2014Q1 us-gaap Fair Value Assets Level2 To Level1 Transfers Amount
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0 USD
CY2015Q1 us-gaap Fair Value Assets Level2 To Level1 Transfers Amount
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0 USD
CY2014Q1 us-gaap Fair Value Assets Measured On Recurring Basis Change In Unrealized Gain Loss
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-20000000 USD
CY2015Q1 us-gaap Fair Value Assets Measured On Recurring Basis Change In Unrealized Gain Loss
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-96000000 USD
CY2014Q1 us-gaap Fair Value Liabilities Level1 To Level2 Transfers Amount
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0 USD
CY2015Q1 us-gaap Fair Value Liabilities Level1 To Level2 Transfers Amount
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0 USD
CY2014Q1 us-gaap Fair Value Liabilities Level2 To Level1 Transfers Amount
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0 USD
CY2015Q1 us-gaap Fair Value Liabilities Level2 To Level1 Transfers Amount
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0 USD
CY2014Q1 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Gain Loss Included In Earnings
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14000000 USD
CY2015Q1 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Gain Loss Included In Earnings
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-24000000 USD
CY2014Q1 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Issues
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-1000000 USD
CY2015Q1 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Issues
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationIssues
0 USD
CY2014Q1 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Settlements
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationSettlements
24000000 USD
CY2015Q1 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Settlements
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationSettlements
9000000 USD
CY2014Q1 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Transfers Into Level3
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0 USD
CY2015Q1 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Transfers Into Level3
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-1000000 USD
CY2014Q1 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Transfers Out Of Level3
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0 USD
CY2015Q1 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Transfers Out Of Level3
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0 USD
CY2013Q4 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis With Unobservable Inputs
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs
-36000000 USD
CY2014Q1 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis With Unobservable Inputs
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs
-43000000 USD
CY2014Q4 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis With Unobservable Inputs
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs
24000000 USD
CY2015Q1 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis With Unobservable Inputs
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-12000000 USD
CY2014Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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57000000 USD
CY2015Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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60000000 USD
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102000000 USD
CY2015Q1 us-gaap Finite Lived Intangible Assets Net
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100000000 USD
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1000000 USD
CY2015Q1 us-gaap Gain Loss On Sales Of Assets And Asset Impairment Charges
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10000000 USD
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2018000000 USD
CY2015Q1 us-gaap Goodwill
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2018000000 USD
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485000000 USD
CY2015Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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396000000 USD
CY2014Q1 us-gaap Income Tax Expense Benefit
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158000000 USD
CY2015Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
122000000 USD
CY2015Q1 us-gaap Income Tax Reconciliation State And Local Income Taxes
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8000000 USD
CY2014Q1 us-gaap Increase Decrease In Accounts And Other Receivables
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270000000 USD
CY2015Q1 us-gaap Increase Decrease In Accounts And Other Receivables
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8000000 USD
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100000000 USD
CY2015Q1 us-gaap Increase Decrease In Accounts Payable
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51000000 USD
CY2015Q1 us-gaap Increase Decrease In Derivative Assets And Liabilities
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-49000000 USD
CY2014Q1 us-gaap Increase Decrease In Inventories
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CY2015Q1 us-gaap Increase Decrease In Inventories
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-172000000 USD
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-50000000 USD
CY2015Q1 us-gaap Increase Decrease In Other Operating Assets
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-2000000 USD
CY2015Q1 us-gaap Increase Decrease In Other Operating Liabilities
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97000000 USD
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-23000000 USD
CY2015Q1 us-gaap Increase Decrease In Pension Plan Obligations
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2000000 USD
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CY2015Q1 us-gaap Increase Decrease In Postretirement Obligations
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222000000 USD
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4000000 USD
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10000000 USD
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168000000 USD
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170000000 USD
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111000000 USD
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110000000 USD
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110000000 USD
CY2015Q1 us-gaap Interest Expense
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110000000 USD
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116000000 USD
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300000000 USD
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480000000 USD
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480000000 USD
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255000000 USD
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2025000000 USD
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1770000000 USD
CY2014Q4 us-gaap Long Term Debt And Capital Lease Obligations
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CY2015Q1 us-gaap Long Term Debt And Capital Lease Obligations
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274000000 USD
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166000000 USD
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CY2015Q1 us-gaap Long Term Debt Noncurrent
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CY2015Q1 us-gaap Long Term Investments
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1911000000 USD
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532000000 USD
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326000000 USD
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273000000 USD
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1000000 USD
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1000000 USD
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90000000 USD
CY2015Q1 us-gaap Notes And Loans Receivable Net Noncurrent
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88000000 USD
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560000000 USD
CY2015Q1 us-gaap Operating Income Loss
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461000000 USD
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CY2015Q1 us-gaap Other Assets Current
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245000000 USD
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CY2015Q1 us-gaap Other Comprehensive Income Loss Net Of Tax
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CY2014Q1 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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CY2015Q1 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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CY2014Q1 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Tax
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CY2015Q1 us-gaap Payments For Repurchase Of Common Stock
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250000000 USD
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CY2015Q1 us-gaap Proceeds From Issuance Of Common Stock
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CY2014Q1 us-gaap Proceeds From Repayments Of Short Term Debt
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246000000 USD
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CY2015Q1 us-gaap Property Plant And Equipment Net
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CY2014Q1 us-gaap Public Utilities Allowance For Funds Used During Construction Capitalized Cost Of Equity
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CY2015Q1 us-gaap Public Utilities Allowance For Funds Used During Construction Capitalized Cost Of Equity
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CY2015Q1 us-gaap Purchase Obligation
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2600000000 USD
CY2014Q4 us-gaap Regulatory Assets Current
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CY2014Q1 us-gaap Repayments Of Long Term Debt
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117000000 USD
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120000000 USD
CY2015Q1 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
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CY2015Q1 us-gaap Retained Earnings Accumulated Deficit
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4727000000 USD
CY2014Q1 us-gaap Revenues
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3930000000 USD
CY2015Q1 us-gaap Revenues
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CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
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CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
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CY2014Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
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CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
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CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
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CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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43.56
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
42.61
CY2015Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
45.37
CY2015Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
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CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
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12000000 USD
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
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P3Y3M25D
CY2014Q4 us-gaap Short Term Borrowings
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CY2015Q1 us-gaap Short Term Borrowings
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CY2015Q1 us-gaap Significant Change In Unrecognized Tax Benefits Is Reasonably Possible Amount Of Unrecorded Benefit
SignificantChangeInUnrecognizedTaxBenefitsIsReasonablyPossibleAmountOfUnrecordedBenefit
6000000 USD
CY2015Q1 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
150317 shares
CY2015Q1 us-gaap Stock Issued During Period Value Employee Benefit Plan
StockIssuedDuringPeriodValueEmployeeBenefitPlan
117000000 USD
CY2015Q1 us-gaap Stock Option Plan Expense
StockOptionPlanExpense
0 USD
CY2014Q4 us-gaap Stockholders Equity
StockholdersEquity
8327000000 USD
CY2015Q1 us-gaap Stockholders Equity
StockholdersEquity
8665000000 USD
CY2015Q1 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
9000000 USD
CY2014Q1 us-gaap Stock Option Plan Expense
StockOptionPlanExpense
0 USD
CY2014Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
8342000000 USD
CY2015Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
8678000000 USD
CY2015Q1 us-gaap Stockholders Equity Other
StockholdersEquityOther
-60000000 USD
CY2014Q1 us-gaap Taxes Excluding Income And Excise Taxes
TaxesExcludingIncomeAndExciseTaxes
95000000 USD
CY2015Q1 us-gaap Taxes Excluding Income And Excise Taxes
TaxesExcludingIncomeAndExciseTaxes
100000000 USD
CY2014Q1 us-gaap Trading Securities Realized Gain Loss
TradingSecuritiesRealizedGainLoss
2000000 USD
CY2015Q1 us-gaap Trading Securities Realized Gain Loss
TradingSecuritiesRealizedGainLoss
1000000 USD
CY2014Q1 us-gaap Undistributed Earnings
UndistributedEarnings
210000000 USD
CY2015Q1 us-gaap Undistributed Earnings
UndistributedEarnings
149000000 USD
CY2014Q1 us-gaap Undistributed Earnings Diluted
UndistributedEarningsDiluted
210000000 USD
CY2015Q1 us-gaap Undistributed Earnings Diluted
UndistributedEarningsDiluted
149000000 USD
CY2015Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
9000000 USD
CY2015Q1 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
2000000 USD
CY2014Q1 us-gaap Utilities Operating Expense Maintenance And Operations
UtilitiesOperatingExpenseMaintenanceAndOperations
841000000 USD
CY2015Q1 us-gaap Utilities Operating Expense Maintenance And Operations
UtilitiesOperatingExpenseMaintenanceAndOperations
826000000 USD
CY2015Q1 us-gaap Variable Interest Entity Entity Maximum Loss Exposure Amount
VariableInterestEntityEntityMaximumLossExposureAmount
0 USD
CY2014Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
177000000 shares
CY2015Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
178000000 shares
CY2014Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
177000000 shares
CY2015Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
178000000 shares
CY2015Q1 us-gaap Derivatives Methods Of Accounting Nonhedging Derivatives
DerivativesMethodsOfAccountingNonhedgingDerivatives
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Revenues and energy costs related to trading contracts are presented on a net basis in DTE Energy's Consolidated Statements of Operations. Commodity derivatives used for trading purposes, and financial non-trading commodity derivatives, are accounted for using the MTM method with unrealized and realized gains and losses recorded in Operating revenues. Non-trading physical commodity sale and purchase derivative contracts are generally accounted for using the MTM method with unrealized and realized gains and losses for sales recorded in Operating revenue and purchases recorded in Fuel, purchased power and gas.</font></div></div>
CY2015Q1 us-gaap Derivatives Reporting Of Derivative Activity
DerivativesReportingOfDerivativeActivity
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Registrants consider the following criteria in determining whether a market is considered active: frequency in which pricing information is updated, variability in pricing between sources or over time and the availability of public information. Other derivative contracts are valued based upon a variety of inputs including commodity market prices, broker quotes, interest rates, credit ratings, default rates, market-based seasonality and basis differential factors. The Registrants monitor the prices that are supplied by brokers and pricing services and may use a supplemental price source or change the primary price source of an index if prices become unavailable or another price source is determined to be more representative of fair value. The Registrants have obtained an understanding of how these prices are derived. Additionally, the Registrants selectively corroborate the fair value of their transactions by comparison of market-based price sources. Mathematical valuation models are used for derivatives for which external market data is not readily observable, such as contracts which extend beyond the actively traded reporting period. The Registrants have established a Risk Management Committee whose responsibilities include directly or indirectly ensuring all valuation methods are applied in accordance with predefined policies. The development and maintenance of the Registrants' forward price curves has been assigned to DTE Energy's Risk Management Department, which is separate and distinct from the trading functions within DTE Energy.</font></div></div>
CY2015Q1 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;"></font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NEW ACCOUNTING PRONOUNCEMENTS</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the FASB issued ASU No. 2014-09, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue from Contracts with Customers.</font><font style="font-family:inherit;font-size:10pt;"> The objectives of this ASU are to improve upon revenue recognition requirements by providing a single comprehensive model to determine the measurement of revenue and timing of recognition. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. This ASU also requires expanded qualitative and quantitative disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. The revenue standard is effective for the first interim period within annual reporting periods beginning after December 15, 2016 and is to be applied retrospectively. Early adoption is not permitted. The Registrants are currently assessing the impact of this ASU on their Consolidated Financial Statements.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2015, the FASB issued ASU No. 2015-03, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Simplifying the Presentation of Debt Issuance Costs</font><font style="font-family:inherit;font-size:10pt;">. This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU is effective for reporting periods beginning after December 15, 2015 and interim periods therein. It is to be applied retrospectively and early adoption is permitted. The Registrants are currently assessing the impact of this ASU on their Consolidated Financial Statements.</font></div></div>

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