CMS ENERGY CORPORATION
Consolidated Statements of Income
(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Six Months Ended

6/30/18

6/30/17

6/30/18

6/30/17

Operating revenue

$

1,492

$

1,449

$

3,445

$

3,278

Operating expenses

1,237

1,208

2,827

2,649

Operating Income

255

241

618

629

Other income

22

9

51

23

Interest charges

112

110

223

217

Income Before Income Taxes

165

140

446

435

Income tax expense

25

47

65

143

Net Income

140

93

381

292

Income attributable to noncontrolling interests

1

1

1

1

Net Income Available to Common Stockholders

$

139

$

92

$

380

$

291

Basic Earnings Per Average Common Share

$

0.49

$

0.33

$

1.35

$

1.04

Diluted Earnings Per Average Common Share

0.49

0.33

1.35

1.04

CMS ENERGY CORPORATION
Summarized Consolidated Balance Sheets
(Unaudited)

In Millions

As of

6/30/18

12/31/17

Assets

Current assets

Cash and cash equivalents

$

477

$

182

Restricted cash and cash equivalents

17

17

Other current assets

1,792

2,276

Total current assets

2,286

2,475

Non-current assets

Plant, property, and equipment

17,237

16,761

Other non-current assets

3,789

3,814

Total Assets

$

23,312

$

23,050

Liabilities and Equity

Current liabilities ⁽¹⁾

$

1,319

$

1,511

Non-current liabilities ⁽¹⁾

6,715

6,574

Capitalization

Debt, capital leases, and financing obligation (excluding securitization debt) ⁽²⁾

Debt, capital leases, and financing obligation (excluding non-recourse and securitization debt)

8,897

8,940

Non-recourse debt

1,382

1,245

Total debt, capital leases, and financing obligation (excluding securitization debt)

10,279

10,185

Noncontrolling interests

37

37

Common stockholders' equity

4,672

4,441

Total capitalization (excluding securitization debt)

14,988

14,663

Securitization debt ⁽²⁾

290

302

Total Liabilities and Equity

$

23,312

$

23,050

⁽¹⁾    Excludes debt, capital leases, and financing obligation.

⁽²⁾    Includes current and non-current portions.

CMS ENERGY CORPORATION

Summarized Consolidated Statements of Cash Flows

(Unaudited)

In Millions

Six Months Ended

6/30/18

6/30/17

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

204

$

257

Net cash provided by operating activities

1,416

1,119

Net cash used in investing activities

(1,008)

(806)

Cash flows from operating and investing activities

408

313

Net cash used by financing activities

(111)

(129)

Total Cash Flows

$

297

$

184

End of Period Cash and Cash Equivalents, Including Restricted Amounts

$

501

$

441

CMS ENERGY CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income
(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Six Months Ended

6/30/18

6/30/17

6/30/18

6/30/17

Net Income Available to Common Stockholders

$

139

$

92

$

380

$

291

Reconciling items:

Discontinued operations loss

* 

*

* 

* 

Restructuring costs and other

1

1

1

2

Tax impact

(*)

(1)

(*)

(1)

Gain on assets previously sold

(4)

-

(4)

-

Tax impact

1

-

1

-

Adjusted net income – non-GAAP

$

137

$

92

$

378

$

292

Average Common Shares Outstanding

Basic

282.1

279.5

281.8

279.2

Diluted

282.6

280.3

282.4

280.1

Basic Earnings Per Average Common Share

Reported net income per share

$

0.49

$

0.33

$

1.35

$

1.04

Reconciling items:

Discontinued operations loss

* 

* 

* 

* 

Restructuring costs and other

* 

* 

* 

* 

Tax impact

(*)

(*)

(*)

(*)

Gain on assets previously sold

(0.01)

-

(0.01)

-

Tax impact

* 

-

* 

-

Adjusted net income per share – non-GAAP

$

0.48

$

0.33

$

1.34

$

1.04

Diluted Earnings Per Average Common Share

Reported net income per share

$

0.49

$

0.33

$

1.35

$

1.04

Reconciling items:

Discontinued operations loss

* 

* 

* 

* 

Restructuring costs and other

* 

* 

* 

* 

Tax impact

(*)

(*)

(*)

(*)

Gain on assets previously sold

(0.01)

-

(0.01)

-

Tax impact

* 

-

* 

-

Adjusted net income per share – non-GAAP

$

0.48

$

0.33

$

1.34

$

1.04

*

Less than $0.5 million or $0.01 per share.

Management views adjusted (non-Generally Accepted Accounting Principles) earnings as a key measure of the Company's present operating financial performance and uses adjusted earnings for external communications with analysts and investors.  Internally, the Company uses adjusted earnings to measure and assess performance.  Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, regulatory items from prior years, or other items detailed in these summary financial statements.  Adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for reported earnings.