Company: DTK
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000936340-25-000223
Chunk: 159

Company: DTE ENERGY CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 159
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 Accounts Receivable and Contract Assets, which provides a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606.  The ASU is effective for the Registrants for annual and interim periods beginning after December 15, 2025.  The guidance should be applied on a prospective basis.  Early adoption is permitted.  The Registrants are currently assessing the impact of this standard on their Consolidated Financial Statements.In September 2025, the FASB issued ASU No. 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.  The amendments in this update modernize the accounting guidance for the costs to develop software for internal use.  The amendments remove all references to a sequential software development method (referred to as "project stages") throughout ASC 350-40 and clarifies the threshold entities should apply to begin capitalizing eligible costs.  The ASU is effective for the Registrants for annual and interim periods beginning after December 15, 2027.  The guidance may be applied on a prospective, retrospective, or modified transition basis.  Early adoption is permitted.  The Registrants are currently assessing the impact of this standard on their Consolidated Financial Statements.

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Table of ContentsDTE Energy Company — DTE Electric CompanyCombined Notes to Consolidated Financial Statements (Unaudited) — (Continued)

NOTE 4 — ACQUISITION

Electric Segment AcquisitionEffective August 14, 2025, DTE Sustainable Generation closed on the purchase of a 123 MW cogeneration facility, located in Michigan, from Osaka Gas USA Corporation.  The acquisition adds generating capacity to DTE Energy's portfolio.  Direct transaction costs, primarily related to advisory fees, were immaterial and were included in Operation and maintenance in DTE Energy's Consolidated Statements of Operations for the period incurred.  The fair value of consideration provided for the acquisition was approximately $216 million, including preliminary working capital adjustments.  The purchase price, which was paid in cash, is subject to final working capital settlement adjustments that will be determined subsequent to the third quarter of 2025.The acquisition was accounted for using the acquisition method of accounting for business combinations.  Accordingly, the cost was allocated to the underlying net assets based on their respective fair values as shown below:(In millions)Cash$5