Income from Discontinued Operations Before Income Taxes

[Table of Contents](#ie1b09d57e49a40aaa81f572e6311eac9_10)DTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements (Unaudited) — (Continued)NOTE 4 — DISCONTINUED OPERATIONSSeparation of DT MidstreamOn July 1, 2021, DTE Energy completed the separation of DT Midstream, its former natural gas pipeline, storage, and gathering non-utility business. The table below reflects the financial results of DT Midstream that are included in discontinued operations within the Consolidated Statements of Operations. These results include the impact of tax-related adjustments and all transaction costs related to the separation. General corporate overhead costs have been excluded and no portion of corporate interest costs were allocated to discontinued operations.

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Three Months Ended March 31, |
|  |  |  |  |  |  |  | 2021 |
|  |  |  |  |  |  |  | (In millions) |
| Operating Revenues — Non-utility operations |  |  |  |  |  |  | $ | 197  |  |
|  |  |  |  |  |  |  |  |
| Operating Expenses |  |  |  |  |  |  |  |
| Cost of gas and other — non-utility |  |  |  |  |  |  | 5  |  |
| Operation and maintenance(a) |  |  |  |  |  |  | 41  |  |
| Depreciation and amortization |  |  |  |  |  |  | 41  |  |
| Taxes other than income |  |  |  |  |  |  | 7  |  |
| Asset (gains) losses and impairments, net |  |  |  |  |  |  | (1) |  |
|  |  |  |  |  |  |  | 93  |  |
| Operating Income |  |  |  |  |  |  | 104  |  |
|  |  |  |  |  |  |  |  |
| Other (Income) and Deductions |  |  |  |  |  |  |  |
| Interest expense |  |  |  |  |  |  | 26  |  |
| Interest income |  |  |  |  |  |  | (3) |  |
| Other income |  |  |  |  |  |  | (33) |  |
|  |  |  |  |  |  |  | (10) |  |
| Income from Discontinued Operations Before Income Taxes |  |  |  |  |  |  | 114  |  |
|  |  |  |  |  |  |  |  |
| Income Tax Expense |  |  |  |  |  |  | 34  |  |
|  |  |  |  |  |  |  |  |
| Net Income from Discontinued Operations, Net of Taxes |  |  |  |  |  |  | 80  |  |
|  |  |  |  |  |  |  |  |
| Less: Net Income Attributable to Noncontrolling Interests |  |  |  |  |  |  | 3  |  |
|  |  |  |  |  |  |  |  |
| Net Income from Discontinued Operations |  |  |  |  |  |  | $ | 77  |  |

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(a)Includes separation transaction costs of $10 million for the three months ended March 31, 2021 for various legal, accounting and other professional services fees.25
