11-K 1 dteenergycompanydefinedcon.htm 11-K Document



 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________

FORM 11-K

ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018

Commission file number 1-11607

DTE ENERGY COMPANY DEFINED CONTRIBUTION PLANS
DTE Energy Company Savings and Stock Ownership Plan
DTE Electric Company Savings & Stock Ownership Plan for Employees Represented by Local 223 of the Utility Workers Union of America
DTE Electric Company Savings & Stock Ownership Plan for Employees Represented by Local 17 of the International Brotherhood of Electrical Workers
DTE Gas Company Investment and Stock Ownership Plan

DTE ENERGY COMPANY
One Energy Plaza
Detroit, Michigan 48226-1279



 


DTE Energy Company Defined Contribution Plans

Table of Contents


 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


June 21, 2019


To the Participants, Benefit Plan Administration Committee, and Investment Committee
DTE Energy Company Defined Contribution Plans

Opinion on the Financial Statements

We have audited the accompanying statements of net assets available for benefits of the DTE Energy Company Savings and Stock Ownership Plan (the “SSOP”), the DTE Electric Company Savings & Stock Ownership Plan for Employees Represented by Local 223 of the Utility Workers Union of America (the “Local 223 Plan”), the DTE Electric Company Savings & Stock Ownership Plan for Employees Represented by Local 17 of the International Brotherhood of Electrical Workers (the “Local 17 Plan”), and the DTE Gas Company Investment and Stock Ownership Plan (the “Gas ISOP”), collectively referred to as the “DTE Energy Company Defined Contribution Plans” (the “Plans”), as of December 31, 2018 and 2017, and the related statements of changes in net assets available for benefits for the year ended December 31, 2018, as well as the related notes and schedules (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plans as of December 31, 2018 and 2017, and the changes in their net assets available for benefits for the year ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Plans’ management. Our responsibility is to express an opinion on the Plans’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Plans in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Plans are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Plans’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

1

Participants, Benefit Plan Administration Committee, and Investment Committee
DTE Energy Company Defined Contribution Plans
June 21, 2019
Page Two


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
(CONTINUED)

Supplementary Information

The supplementary information contained in the schedules of assets (held at end of year) as of December 31, 2018 has been subjected to audit procedures performed in conjunction with the audits of the Plans’ financial statements. The supplementary information is the responsibility of the Plans’ management. Our audit procedures included determining whether the supplementary information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplementary information. In forming our opinion on the supplementary information, we evaluated whether the supplementary information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, as amended. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole.


/s/ George Johnson & Company

CERTIFIED PUBLIC ACCOUNTANTS
Detroit, Michigan

We have served as the auditor of the SSOP, the Local 223 Plan, and the Local 17 Plan since 2002, and we have served as the Gas ISOP’s auditor since 1999.

2

DTE Energy Company Defined Contribution Plans

Statements of Net Assets Available for Benefits



 
December 31, 2018
 
SSOP
 
Local 223 Plan
 
Local 17 Plan
 
Gas ISOP
 
Total (Memorandum Only)
 
(In thousands)
ASSETS
 
 
 
 
 
 
 
 
 
Participant-directed investment in DTE Energy Company Master Plan Trust, at fair value (Note 5)
$
1,615,186

 
$
658,136

 
$
126,207

 
$
75,124

 
$
2,474,653

Notes receivable from participants
24,633

 
18,575

 
2,662

 
1,877

 
47,747

Net Assets Available for Benefits
$
1,639,819

 
$
676,711

 
$
128,869

 
$
77,001

 
$
2,522,400


 
December 31, 2017
 
SSOP
 
Local 223 Plan
 
Local 17 Plan
 
Gas ISOP
 
Total (Memorandum Only)
 
(In thousands)
ASSETS
 
 
 
 
 
 
 
 
 
Participant-directed investment in DTE Energy Company Master Plan Trust, at fair value (Note 5)
$
1,718,552

 
$
698,733

 
$
128,643

 
$
79,447

 
$
2,625,375

Notes receivable from participants
24,122

 
18,407

 
2,601

 
2,169

 
47,299

Net Assets Available for Benefits
$
1,742,674

 
$
717,140

 
$
131,244

 
$
81,616

 
$
2,672,674


See accompanying Notes to Financial Statements

3

DTE Energy Company Defined Contribution Plans

Statements of Changes in Net Assets Available for Benefits


 
Year Ended December 31, 2018
 
SSOP
 
Local 223 Plan
 
Local 17 Plan
 
Gas ISOP
 
Total (Memorandum Only)
 
(In thousands)
Additions to Net Assets Attributed to:
 
 
 
 
 
 
 
 
 
Interest on participant notes receivable
$
1,172

 
$
925

 
$
132

 
$
96

 
$
2,325

 
 
 
 
 
 
 
 
 


Contributions:
 
 
 
 
 
 
 
 
 
Employer
38,694

 
17,007

 
2,363

 
1,894

 
59,958

Participant
63,405

 
32,161

 
8,502

 
3,215

 
107,283

Rollover
7,022

 
3,047

 
3

 
145

 
10,217

 
109,121

 
52,215

 
10,868

 
5,254

 
177,458

Net transfers from other sponsored plans and other
2,608

 
—

 
—

 
—

 
2,608

Total Additions
112,901

 
53,140

 
11,000

 
5,350

 
182,391

 
 
 
 
 
 
 
 
 
 
Deductions from Net Assets Attributed to:
 
 
 
 
 
 
 
 
 
Plan's share of the DTE Energy Company Master Plan Trust investment loss
(67,073
)
 
(19,102
)
 
(4,574
)
 
(2,817
)
 
(93,566
)
Distributions and withdrawals
(146,856
)
 
(72,591
)
 
(7,464
)
 
(6,811
)
 
(233,722
)
Investment advisory and other fees
(1,827
)
 
(720
)
 
(129
)
 
(93
)
 
(2,769
)
Net transfers to other sponsored plans and other
—

 
(1,156
)
 
(1,208
)
 
(244
)
 
(2,608
)
Total Deductions
(215,756
)
 
(93,569
)
 
(13,375
)
 
(9,965
)
 
(332,665
)
 
 
 
 
 
 
 
 
 
 
Net Decrease
(102,855
)
 
(40,429
)
 
(2,375
)
 
(4,615
)
 
(150,274
)
 
 
 
 
 
 
 
 
 
 
Net Assets Available for Benefits
 
 
 
 
 
 
 
 
 
Beginning of year
1,742,674

 
717,140

 
131,244

 
81,616

 
2,672,674

End of year
$
1,639,819

 
$
676,711

 
$
128,869

 
$
77,001

 
$
2,522,400


See accompanying Notes to Financial Statements

4

DTE Energy Company Defined Contribution Plans

Notes to Financial Statements



NOTE 1 — DESCRIPTION OF THE PLANS
The following description of the DTE Energy Company Savings and Stock Ownership Plan (SSOP), the DTE Electric Company Savings & Stock Ownership Plan for Employees Represented by Local 223 of the Utility Workers Union of America (Local 223 Plan), the DTE Electric Company Savings & Stock Ownership Plan for Employees Represented by Local 17 of the International Brotherhood of Electrical Workers (Local 17 Plan), and the DTE Gas Company Investment and Stock Ownership Plan (Gas ISOP) (collectively, the Plans) provides only general information. Participants should refer to the respective Summary Plan Descriptions and the respective Plan documents for a more complete description of each of the Plans' provisions.
General
The Plans are voluntary, defined contribution plans covering the employee groups described below.
The SSOP covers regular full-time and part-time employees of DTE Electric Company (DTE Electric), DTE Gas Company (DTE Gas), DTE Enterprises, Inc., DTE Energy Corporate Services, LLC (DTE LLC), affiliates of DTE LLC (Participating Affiliates), Citizens Gas Fuel Company (Citizens Gas), and Midwest Energy Resources Company (MERC) that are not represented by a collective bargaining agreement. The SSOP also covers certain regular full-time and part-time employees of DTE Electric, Citizens Gas, and non-regulated Participating Affiliates who are represented by collective bargaining agreements.
The Plan has three distinct subdivisions, which originate from the merger of former plans. These subdivisions are generally referred to as the DTE Electric Plan, the MCN Plan, and the Citizens Plan. Participation in the subdivisions may be dependent upon the defined benefit plan in which the employee participates.
DTE LLC is a subsidiary of DTE Energy. DTE LLC, the specific employers listed above, and the Participating Affiliates are otherwise referred to as the “Company” or “Companies.”
The Local 17 Plan covers regular full-time and part-time employees of the Company represented by Local 17 of the International Brotherhood of Electrical Workers.
The Local 223 Plan covers regular full-time and part-time employees of a Regulated Participating Employer (DTE LLC, DTE Electric, and DTE Gas) represented by Local 223 of the Utility Workers Union of America.
The Gas ISOP covers regular full-time and part-time employees of the Company represented by:
•
Local #799C Transmission and Storage Operations (T&SO), International Chemical Workers Union Council, United Food and Commercial Workers;
•
Local #799C Northern, International Chemical Workers Union Council, United Food and Commercial Workers;
•
Local #70C, International Chemical Workers Union Council, United Food and Commercial Workers; or
•
Local #132C, International Chemical Workers Union Council, United Food and Commercial Workers
Employees are eligible to participate in the respective Plans as soon as administratively practicable upon hire. The Plans are subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).
DTE LLC is the sponsor of the Plans. The DTE Energy Benefit Plan Administration Committee (BPAC) is the administrator of the Plans (Plan Administrator). The Plan Administrator has the responsibility for the day-to-day administration of the Plans. DTE LLC, acting through the DTE Energy Investment Committee, is responsible for the selection and retention of the Plans' investment options and any investment manager that may be appointed under the DTE Energy Company Master Plan Trust (Master Trust). Great-West Trust Company, LLC is the Plans' Trustee (Trustee), and Empower Retirement is the Plans' recordkeeper (Recordkeeper).
Investment management fees, brokerage fees, transfer taxes, and other expenses incidental to the purchase or sale of securities are paid from investment assets.

5

DTE Energy Company Defined Contribution Plans

Notes to Financial Statements — (Continued)

Contributions
Each of the Plans provides for Employee Contributions in the form of pre-tax contributions (Tax Deferred Contributions), post-tax contributions (Employee After-Tax Contributions) (excluding Citizens Plan), and Roth 401(k) contributions, up to a maximum of 100% of annual eligible compensation (as defined by the respective Plans) and subject to maximum limitations established by the Internal Revenue Code of 1986, as amended (IRC). Certain employee groups are automatically enrolled with a 4 percent pre-tax deferral rate. If stated in the respective Plan document, the deferral rate increases 1 percent each year, until it reaches a maximum of 10 percent. Participants age 50 or older in the plan year are also eligible to make Catch-Up Contributions and Roth 401(k) Catch-Up Contributions subject to the limitations established by the IRC. Participants may also directly roll over into the plans distributions of certain assets from a tax-qualified plan of a prior employer (Direct Rollover Contributions).
After six months of service for participants of the Local 223, Gas ISOP, and Local 17 Plans, after two years of service for participants of the Citizens Plan subdivision of the SSOP, and upon hire for all other participants, the Company makes Company Contributions on behalf of eligible participants (as defined by the respective Plans) based on a participant’s Employee Contributions, excluding Catch-Up Contributions. The amount of the Company Contribution is dependent upon the respective Plan and participant's employee group, as specified in the Plan document.
For eligible employees of the SSOP, Gas ISOP, and Local 223 Plans, and as defined in those respective Plan documents, the Company will make a Non-Elective Contribution each pay period equal to 4% of the participant’s eligible compensation. Employees do not need to be making Employee Contributions to be eligible for the Non-Elective Contribution.
Participant Accounts
Each participant's account is credited with the participant's Employee Contributions, including eligible Direct Rollover Contributions, Company Contributions, Non-Elective Contributions, and investment earnings. Each participant's account is reduced by withdrawals, loans and fees. Forfeited balances of terminated participants' non-vested accounts are used to reduce future Company Contributions. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account.
Vesting
Employee Contributions and Direct Rollover Contributions are fully vested at all times. In general, Company Contributions and Non-Elective Contributions will vest according to the following schedule:
Years of Service
 
Percent Vested
Less than 2
 
0%
2
 
20%
3
 
40%
4
 
60%
5
 
80%
6
 
100%
In addition, a participant will generally have a fully vested interest in Company Contributions and Non-Elective Contributions upon (a) attainment of age 65 while actively employed, (b) disability, as defined in the Plans, (c) death, or (d) in some cases, in connection with the sale of a business.
Investment Options
Participants may elect to have their Employee Contributions and Direct Rollover Contributions invested entirely in any one of the investment funds or in any combination of the investment funds held in the Master Trust. The Company Contributions and Non-Elective Contributions (for the Local 223 Plan and Gas ISOP only) will be initially invested in the DTE Energy Stock Fund. The Company Contributions and Non-Elective Contributions will be made either in cash or in shares of DTE Energy Common Stock at the option of DTE LLC. If the Company Contribution or Non-Elective Contribution is made in cash, the DTE Energy Stock Fund will immediately purchase shares of DTE Energy Common Stock on the open market. Participants can elect to transfer Company Contributions and Non-Elective Contributions from the DTE Energy Stock Fund to one or more investments at any time.

6

DTE Energy Company Defined Contribution Plans

Notes to Financial Statements — (Continued)

The entire DTE Energy Stock Fund is considered to be the Employee Stock Ownership Plan (ESOP) portion of the Plan. Quarterly dividends from DTE Energy Common Stock are automatically reinvested in DTE Energy Common Stock. DTE Energy Common Stock dividends may be paid out in cash on a quarterly basis, at the participant's election, and are reported as distributions in the accompanying statement of changes in net assets available for benefits.
Cash contributions received by the Trustee for the DTE Energy Stock Fund are invested in DTE Energy Common Stock. The Trustee purchases and sells shares of DTE Energy Common Stock in open market transactions at prevailing market prices. However, the Trustee may purchase or sell DTE Energy Common Stock from or to DTE Energy if the purchase or sale price is for adequate consideration. Brokerage commissions are charged against the DTE Energy Stock Fund.
A participant's interest in the DTE Energy Stock Fund is measured by share trading. A share-traded investment is traded and valued on a share basis.
Administrative Expenses
The Company generally pays the Plans' Trustee fees and certain other administrative expenses of the Plans.
Voting Rights
Each participant is entitled to exercise voting rights attributable to the shares of DTE Energy Common Stock allocated to their account and is notified by the Trustee prior to the time that such rights are to be exercised. The Trustee is not permitted to vote any allocated share for which instructions have not been given by a participant in the DTE Electric Plan subdivision of the SSOP, in the Local 223 Plan, or in the Local 17 Plan. For the remaining subdivisions of the SSOP and for the Gas ISOP, shares with respect to which the Trustee does not receive voting instructions will be voted by the Trustee in the same proportion as shares for which the Trustee receives voting instructions.
Distributions, Withdrawals, and Participant Notes Receivable
Distributions can be made upon termination of employment, death or disability, as defined under each of the plans. Some distribution options include 100% lump sum payments, installment payments, or partial lump sum payments (no more than four times per year). Distributions cannot be deferred beyond April 1st of the year following the year the participant attains age 70 ½ unless the participant is still employed by the Company. The Plans also allow participants to withdraw, prior to termination of employment, certain portions of their account balances as an in-service distribution, upon attainment of age 59 ½, or under financial hardship, as defined in the respective Plan documents.
Participants may borrow from their accounts subject to certain maximum and minimum amounts as described by the respective Plan documents and the Internal Revenue Code. Notes receivable, for which only two notes receivable per participant can be outstanding at a given time, are collateralized by the participant’s account balance and bear interest at a market rate. No loans may be made from Company Contributions or Non-Elective Contributions.
Plan Termination
Although it has not expressed any intent to do so, the Company has the right under the Plans to discontinue its contributions at any time and to terminate each of the Plans subject to the provisions of ERISA, except as otherwise agreed to pursuant to collective bargaining. In the event any of the Plans terminate, participants will become 100% vested within those respective terminated Plans.

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Total (Memorandum Only)
The “Total (Memorandum Only)” columns in the accompanying Statements of Net Assets Available for Benefits and Statements of Changes in Net Assets Available for Benefits represent the total balances and activity for the Plans currently participating in the Master Trust.

7

DTE Energy Company Defined Contribution Plans

Notes to Financial Statements — (Continued)

Valuation of Investments and Income Recognition
Investments are reported at fair value. The common/collective trusts are reported at net asset value (NAV) as a practical expedient for fair value. See Note 5, "The DTE Energy Company Master Plan Trust," for additional information.
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation (depreciation) includes the Plans' net gains and losses on investments bought and sold as well as held during the year.
Notes Receivable from Participants
Notes receivable from participants are valued at cost plus accrued interest. If a participant ceases to make loan repayments and the Plan Administrator deems the participant loan to be in default, the participant loan balance is reduced, and a benefit payment is recorded.
Payment of Benefits
Benefits are recorded when paid.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management of the Plans to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions to and deductions from net assets available for benefits during the reporting period. Actual results could differ from those estimates.
Risks and Uncertainties
The Master Trust invests in various securities, including registered investment companies, DTE Energy Common Stock, and common/collective trusts. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term, and such changes could materially affect participants’ account balances and the amounts reported in the financial statements.
Fair Value
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or generally unobservable inputs. The Master Trust makes certain assumptions it believes that market participants would use in pricing assets or liabilities, including assumptions about risk and the risks inherent in the inputs to valuation techniques. The Master Trust believes it uses valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs.

8

DTE Energy Company Defined Contribution Plans

Notes to Financial Statements — (Continued)

A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. All assets and liabilities are required to be classified in their entirety based on the lowest level of input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability, and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. The Master Trust classifies fair value balances based on the fair value hierarchy defined as follows:
•
Level 1 — Consists of unadjusted quoted prices in active markets for identical assets or liabilities that the Master Trust has the ability to access as of the reporting date.
•
Level 2 — Consists of inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.
•
Level 3 — Consists of unobservable inputs for assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost-benefit constraints.

NOTE 3 — NEW ACCOUNTING PRONOUNCEMENTS
Recently Adopted Pronouncements
During 2018, the Plans adopted Accounting Standards Update (ASU) 2017-06, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting. As a result of the adoption of ASU No. 2017-06, additional disclosures related to each of the Plans' interests in the underlying investments held by the Master Trust have been made. This standard was adopted retrospectively and had no impact on the respective Plans’ net assets or changes in net assets.

NOTE 4 — FEDERAL INCOME TAX STATUS
The SSOP and the Gas ISOP each obtained a determination letter dated April 2, 2015. The Local 17 Plan and the Local 223 Plan each obtained a determination letter dated April 3, 2015. Each of the determination letters from the Internal Revenue Service (IRS) stated that the respective Plans, as then designed, were in compliance with the applicable requirements of the IRC. The Plans are qualified under Sections 401(a) and 401(k) of the IRC, and therefore, the related trust is exempt from taxation. Accordingly, no provision for income taxes has been included in the accompanying financial statements. The Plans are no longer subject to federal income tax examinations by the IRS for years prior to 2015.

NOTE 5 — THE DTE ENERGY COMPANY MASTER PLAN TRUST
The Company established the Master Trust pursuant to a trust agreement with Great-West Trust Company, LLC, as trustee, in order to permit the commingling of trust assets of the Plans for investment and administrative purposes. The assets in the Master Trust are held in various participant-directed investments. Each of the Plans’ allocated portion of the investments is equal to the beginning of the year fair value of the Plans’ interest in the Master Trust, adjusted by the Plans’ allocated share of the Master Trust investment income and expenses, plus actual contributions, less actual distributions and allocated administrative expenses. Investment income and administrative expenses are allocated to the individual Plans based upon daily balances of the respective investments invested by each Plan.
At December 31, 2018 and 2017 each of the Plans' respective interests in the net assets of the Master Trust were as follows:

9

DTE Energy Company Defined Contribution Plans

Notes to Financial Statements — (Continued)

 
2018
 
Plan's Interest in Master Trust Balances
 
 
 
SSOP
 
Local 223 Plan
 
Local 17 Plan
 
Gas ISOP
 
Master Trust Balances
 
(In thousands)
Investments, at fair value:
 
 
 
 
 
 
 
 
 
Registered investment companies
$
234,200

 
$
80,691

 
$
15,270

 
$
9,546

 
$
339,707

DTE Energy Common Stock
267,910

 
186,791

 
28,771

 
19,261

 
502,733

Common/collective trusts
1,113,076

 
390,654

 
82,166

 
46,317

 
1,632,213

Assets held in Master Trust
$
1,615,186

 
$
658,136

 
$
126,207

 
$
75,124

 
$
2,474,653

 
2017
 
Plan's Interest in Master Trust Balances
 
 
 
SSOP
 
Local 223 Plan
 
Local 17 Plan
 
Gas ISOP
 
Master Trust Balances
 
(In thousands)
Investments, at fair value:
 
 
 
 
 
 
 
 
 
Registered investment companies
$
932,843

 
$
305,618

 
$
63,999

 
$
36,449

 
$
1,338,909

DTE Energy Common Stock
268,347

 
185,651

 
27,671

 
19,519

 
501,188

Common/collective trusts
517,362

 
207,464

 
36,973

 
23,479

 
785,278

Assets held in Master Trust
$
1,718,552

 
$
698,733

 
$
128,643

 
$
79,447

 
$
2,625,375

The following is a summary of investment (losses) income in the Master Trust for the year ended December 31, 2018:
 
2018
 
(In thousands)
Net depreciation
$
(145,460
)
Dividends and interest
51,894

Total investment loss
$
(93,566
)
The following tables present investments of the Master Trust measured and recorded at fair value on a recurring basis as of December 31, 2018 and 2017:
 
2018
 
Level 1
 
Other(a)
 
Total
 
(In thousands)
Registered investment companies
$
339,707

 
$
—

 
$
339,707

DTE Energy Common Stock
502,733

 
—

 
502,733

Common/collective trusts
—

 
1,632,213

 
1,632,213

Total Investments at fair value
$
842,440

 
$
1,632,213

 
$
2,474,653

_______________________________________
(a)
Amounts represent assets valued at net asset value (NAV) as a practical expedient for fair value.
 
2017
 
Level 1
 
Other(a)
 
Total
 
(In thousands)
Registered investment companies
$
1,338,909

 
$
—

 
$
1,338,909

DTE Energy Common Stock
501,188

 
—

 
501,188

Common/collective trusts
—

 
785,278

 
785,278

Total Investments at fair value
$
1,840,097

 
$
785,278

 
$
2,625,375

___________________________
(a)
Amounts represent assets valued at NAV as a practical expedient for fair value.

10

DTE Energy Company Defined Contribution Plans

Notes to Financial Statements — (Continued)

The Plans had no Level 2 or Level 3 assets at December 31, 2018 and 2017.
Registered Investment Companies (mutual funds)
Valued at the NAV of shares held by the plans at year end, as quoted in the active market, and are classified within Level 1 of the valuation hierarchy.
DTE Energy Common Stock
Valued at the closing price reported on the New York Stock Exchange and is classified within Level 1 of the valuation hierarchy.
Common/Collective Trusts
Represents interests in pooled investment vehicles designed primarily for collective investment of employee benefit trusts. The fair value of the investments in this category has been estimated using the NAV per unit as a practical expedient provided by the fund managers. There were no unfunded commitments at December 31, 2018 and 2017. There were no redemption restrictions or redemption notice periods at December 31, 2018 and 2017, and the assets can be redeemed from the Plans at any time.

NOTE 6 — RELATED PARTY AND PARTY IN INTEREST TRANSACTIONS
The Master Trust holds shares of DTE Energy Company Common Stock; therefore, this transaction qualifies as a party-in-interest transaction.
At December 31, 2018 and 2017, the Master Trust held 4,557,870 and 4,578,735 shares, respectively of DTE Energy Company common stock with a fair value (in thousands) of $502,733 and $501,188, respectively. For the year ended December 31, 2018, the Master Trust received dividends on DTE Energy Company common stock of $16,153,462. For the year ended December 31, 2018, 1,024,119 shares of DTE Energy Company common stock were purchased for $109,743,106 and 1,047,114 shares were sold for $112,686,312.


11

Supplementary Information


DTE Energy Company Savings and Stock Ownership Plan
Federal Employer Identification Number: 20-5898509; Plan Number: 002

SCHEDULE OF ASSETS (HELD AT END OF YEAR)
AS OF DECEMBER 31, 2018
Form 5500, Schedule H, Part IV, Line 4i

(a)


 
(b)
Identity of issue, borrower,
lessor, or similar party
 
(c)
Description of investment including maturity date, rate of interest, collateral, par or maturity value
 
(d)
Cost
 
(e)
Current Value
*
 
Participant notes receivable
 
Participant notes receivable with interest rates ranging from 4.25% to 11.00%
 
$
—

 
$
24,633,446


* Party-in-interest

12

Supplementary Information


DTE Electric Company Savings & Stock Ownership Plan for Employees Represented by Local 223 of the Utility Workers Union of America
Federal Employer Identification Number: 20-5898509; Plan Number: 003

SCHEDULE OF ASSETS (HELD AT END OF YEAR)
AS OF DECEMBER 31, 2018
Form 5500, Schedule H, Part IV, Line 4i

(a)


 
(b)
Identity of issue, borrower,
lessor, or similar party
 
(c)
Description of investment including maturity date, rate of interest, collateral, par or maturity value
 
(d)
Cost
 
(e)
Current Value
*
 
Participant notes receivable
 
Participant notes receivable with interest rates ranging from 4.25% to 12.00%
 
$
—

 
$
18,574,679


* Party-in-interest


13

Supplementary Information


DTE Electric Company Savings & Stock Ownership Plan for Employees Represented by Local 17 of the International Brotherhood of Electrical Workers
Federal Employer Identification Number: 20-5898509; Plan Number: 004

SCHEDULE OF ASSETS (HELD AT END OF YEAR)
AS OF DECEMBER 31, 2018
Form 5500, Schedule H, Part IV, Line 4i

(a)


 
(b)
Identity of issue, borrower,
lessor, or similar party
 
(c)
Description of investment including maturity date, rate of interest, collateral, par or maturity value
 
(d)
Cost
 
(e)
Current Value
*
 
Participant notes receivable
 
Participant notes receivable with interest rates ranging from 4.25% to 6.45%
 
$
—

 
$
2,661,797


* Party-in-interest


14

Supplementary Information


DTE Gas Company Investment and Stock Ownership Plan
Federal Employer Identification Number: 20-5898509; Plan Number: 006

SCHEDULE OF ASSETS (HELD AT END OF YEAR)
AS OF DECEMBER 31, 2018
Form 5500, Schedule H, Part IV, Line 4i

(a)


 
(b)
Identity of issue, borrower,
lessor, or similar party
 
(c)
Description of investment including maturity date, rate of interest, collateral, par or maturity value
 
(d)
Cost
 
(e)
Current Value
*
 
Participant notes receivable
 
Participant notes receivable with interest rates ranging from 4.25% to 12.00%
 
$
—

 
$
1,877,121


* Party-in-interest


15

Signature


Pursuant to the requirements of the Securities Exchange Act of 1934, the Trustee (or other persons who administer the employee benefit plan) has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
 
DTE ENERGY COMPANY
SAVINGS AND STOCK OWNERSHIP PLAN
 
 
June 21, 2019
/s/ DIANE M. ANTISHIN
 
Diane M. Antishin
 
Vice President Human Resources Operations, Chief Diversity & Inclusion Officer, and
Chair of Benefit Plan Administration Committee



16

Signature


Pursuant to the requirements of the Securities Exchange Act of 1934, the Trustee (or other persons who administer the employee benefit plan) has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
 
DTE ELECTRIC COMPANY SAVINGS & STOCK OWNERSHIP PLAN FOR EMPLOYEES REPRESENTED BY LOCAL 223 OF THE UTILITY WORKERS UNION OF AMERICA
 
 
June 21, 2019
/s/ DIANE M. ANTISHIN
 
Diane M. Antishin
 
Vice President Human Resources Operations, Chief Diversity & Inclusion Officer, and
Chair of Benefit Plan Administration Committee



17

Signature


Pursuant to the requirements of the Securities Exchange Act of 1934, the Trustee (or other persons who administer the employee benefit plan) has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
 
DTE ELECTRIC COMPANY SAVINGS & STOCK OWNERSHIP PLAN FOR EMPLOYEES REPRESENTED BY LOCAL 17 OF THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS
 
 
June 21, 2019
/s/ DIANE M. ANTISHIN
 
Diane M. Antishin
 
Vice President Human Resources Operations, Chief Diversity & Inclusion Officer, and
Chair of Benefit Plan Administration Committee



18

Signature


Pursuant to the requirements of the Securities Exchange Act of 1934, the Trustee (or other persons who administer the employee benefit plan) has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
 
DTE GAS COMPANY INVESTMENT AND STOCK OWNERSHIP PLAN
 
 
June 21, 2019
/s/ DIANE M. ANTISHIN
 
Diane M. Antishin
 
Vice President Human Resources Operations, Chief Diversity & Inclusion Officer, and
Chair of Benefit Plan Administration Committee



19