XML 53 R37.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Schedule I - Condensed Parent Company Financial Statements | 12 Months Ended
--- | ---
Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
SCHEDULE I - CONDENSED PARENT COMPANY FINANCIAL STATEMENTS | SCHEDULE I – CONDENSED PARENT COMPANY FINANCIAL STATEMENTS WEC ENERGY GROUP, INC. (PARENT COMPANY ONLY) A. INCOME STATEMENTS
Year Ended December 31 |  |  |  |  |  |
(in millions) |  | 2017 |  | 2016 |  | 2015
Operating expenses |  | $ | 6.0 |  |  | $ | 7.0 |  |  | $ | 42.2 |
Equity in earnings of subsidiaries |  | 1,234.7 |  |  | 996.5 |  |  | 695.7 |
Other income, net |  | 2.1 |  |  | 2.7 |  |  | 23.2 |
Interest expense |  | 82.0 |  |  | 90.0 |  |  | 71.2 |
Income before income taxes |  | 1,148.8 |  |  | 902.2 |  |  | 605.5 |
Income tax benefit |  | 54.9 |  |  | 36.8 |  |  | 33.0 |
Net income attributed to common shareholders |  | $ | 1,203.7 |  |  | $ | 939.0 |  |  | $ | 638.5 |
The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements. B. STATEMENTS OF COMPREHENSIVE INCOME
Year Ended December 31 |  |  |  |  |  |
(in millions) |  | 2017 |  | 2016 |  | 2015
Net income attributed to common shareholders |  | $ | 1,203.7 |  |  | $ | 939.0 |  |  | $ | 638.5 |
Other comprehensive (loss) income, net of tax |  |  |  |  |  |
Derivatives accounted for as cash flow hedges |  |  |  |  |  |
Gains on settlement, net of tax of $7.6 |  | — |  |  | — |  |  | 11.4 |
Reclassification of gains to net income, net of tax |  | (1.3 | ) |  | (1.3 | ) |  | (0.8 | )
Cash flow hedges, net |  | (1.3 | ) |  | (1.3 | ) |  | 10.6 |
Defined benefit plans |  |  |  |  |  |
Pension and OPEB costs arising during the period, net of tax |  | (0.1 | ) |  | (1.0 | ) |  | (1.5 | )
Amortization of pension and OPEB costs included in net periodic benefit cost, net of tax |  | 0.2 |  |  | 0.3 |  |  | — |
Defined benefit plans, net |  | 0.1 |  |  | (0.7 | ) |  | (1.5 | )
Other comprehensive income (loss) from subsidiaries, net of tax |  | 1.2 |  |  | 0.3 |  |  | (4.8 | )
Other comprehensive (loss) income, net of tax |  | — |  |  | (1.7 | ) |  | 4.3 |
Comprehensive income attributed to common shareholders |  | $ | 1,203.7 |  |  | $ | 937.3 |  |  | $ | 642.8 |
The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements. C. BALANCE SHEETS
At December 31 |  |  |  |
(in millions) |  | 2017 |  | 2016
Assets |  |  |  |
Current assets |  |  |  |
Cash and cash equivalents |  | $ | 4.0 |  |  | $ | 1.2 |
Accounts receivable from related parties |  | 1.9 |  |  | 1.8 |
Notes receivable from related parties |  | 64.1 |  |  | 76.4 |
Prepaid taxes |  | 17.5 |  |  | 47.6 |
Other |  | 0.6 |  |  | 0.5 |
Current assets |  | 88.1 |  |  | 127.5 |
Long-term assets |  |  |  |
Investments in subsidiaries |  | 12,101.9 |  |  | 11,155.4 |
Note receivable from UMERC |  | 50.0 |  |  | — |
Other |  | 47.7 |  |  | 134.7 |
Long-term assets |  | 12,199.6 |  |  | 11,290.1 |
Total assets |  | $ | 12,287.7 |  |  | $ | 11,417.6 |
Liabilities and Equity |  |  |  |
Current liabilities |  |  |  |
Short-term debt |  | $ | 494.8 |  |  | $ | 321.8 |
Current portion of long-term debt |  | 300.0 |  |  | — |
Accounts payable to related parties |  | 2.7 |  |  | 3.2 |
Notes payable to related parties |  | 406.0 |  |  | 241.3 |
Other |  | 8.9 |  |  | 10.3 |
Current liabilities |  | 1,212.4 |  |  | 576.6 |
Long-term liabilities |  |  |  |
Long-term debt |  | 1,592.3 |  |  | 1,890.0 |
Other |  | 21.6 |  |  | 21.2 |
Long-term liabilities |  | 1,613.9 |  |  | 1,911.2 |
Common shareholders' equity |  | 9,461.4 |  |  | 8,929.8 |
Total liabilities and equity |  | $ | 12,287.7 |  |  | $ | 11,417.6 |
The accompanying notes to Condensed Parent Company Financial Statements are an integral part of these financial statements. D. STATEMENTS OF CASH FLOWS
Year Ended December 31 |  |  |  |  |  |
(in millions) |  | 2017 |  | 2016 |  | 2015
Operating activities |  |  |  |  |  |
Net income attributed to common shareholders |  | $ | 1,203.7 |  |  | $ | 939.0 |  |  | $ | 638.5 |
Reconciliation to cash provided by operating activities |  |  |  |  |  |
Equity income in subsidiaries, net of distributions |  | (686.1 | ) |  | (262.1 | ) |  | (156.9 | )
Deferred income taxes |  | 89.5 |  |  | 23.2 |  |  | 30.9 |
Change in – |  |  |  |  |  |
Prepaid taxes |  | 28.4 |  |  | (47.6 | ) |  | — |
Other current assets |  | (0.1 | ) |  | 13.0 |  |  | (9.3 | )
Accrued taxes |  | — |  |  | (75.6 | ) |  | 175.7 |
Other current liabilities |  | (1.9 | ) |  | (5.6 | ) |  | (3.2 | )
Other, net |  | 0.9 |  |  | 6.3 |  |  | (18.4 | )
Net cash provided by operating activities |  | 634.4 |  |  | 590.6 |  |  | 657.3 |
Investing activities |  |  |  |  |  |
Integrys acquisition |  | — |  |  | — |  |  | (1,486.2 | )
Bluewater acquisition |  | (226.0 | ) |  | — |  |  | — |
Capital contributions to subsidiaries |  | (173.4 | ) |  | (55.8 | ) |  | (135.3 | )
Short-term notes receivable from related parties, net |  | 167.8 |  |  | 46.8 |  |  | (91.0 | )
Issuance of long-term note receivable to UMERC |  | (50.0 | ) |  | — |  |  | — |
Purchase of subsidiary's common stock |  | — |  |  | (66.4 | ) |  | — |
Proceeds from the sale of assets and businesses |  | — |  |  | — |  |  | 20.8 |
Other, net |  | 4.5 |  |  | (0.4 | ) |  | (0.1 | )
Net cash used in investing activities |  | (277.1 | ) |  | (75.8 | ) |  | (1,691.8 | )
Financing activities |  |  |  |  |  |
Exercise of stock options |  | 30.8 |  |  | 41.6 |  |  | 30.1 |
Purchase of common stock |  | (71.3 | ) |  | (108.0 | ) |  | (74.7 | )
Dividends paid on common stock |  | (656.5 | ) |  | (624.9 | ) |  | (455.4 | )
Issuance of long-term debt |  | — |  |  | — |  |  | 1,200.0 |
Change in short-term debt |  | 173.0 |  |  | 13.9 |  |  | 307.9 |
Short-term notes payable to related parties, net |  | 169.5 |  |  | 162.3 |  |  | 1.8 |
Other, net |  | — |  |  | 0.2 |  |  | (11.2 | )
Net cash (used in) provided by financing activities |  | (354.5 | ) |  | (514.9 | ) |  | 998.5 |
Net change in cash and cash equivalents |  | 2.8 |  |  | (0.1 | ) |  | (36.0 | )
Cash and cash equivalents at beginning of year |  | 1.2 |  |  | 1.3 |  |  | 37.3 |
Cash and cash equivalents at end of year |  | $ | 4.0 |  |  | $ | 1.2 |  |  | $ | 1.3 |
The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements. SCHEDULE I – CONDENSED PARENT COMPANY FINANCIAL STATEMENTS WEC ENERGY GROUP, INC. (PARENT COMPANY ONLY) E. NOTES TO PARENT COMPANY FINANCIAL STATEMENTS NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES For Parent Company only presentation, investments in subsidiaries are accounted for using the equity method. The condensed Parent Company financial statements and notes should be read in conjunction with the consolidated financial statements and notes of WEC Energy Group, Inc. appearing in this Annual Report on Form 10-K. NOTE 2—CASH DIVIDENDS RECEIVED FROM SUBSIDIARIES Dividends received from our subsidiaries during the years ended December 31 were as follows:
(in millions) |  | 2017 |  | 2016 |  | 2015
WE |  | $ | 240.0 |  |  | $ | 455.0 |  |  | $ | 240.0 |
We Power |  | 181.0 |  |  | 197.9 |  |  | 262.8 |
ATC Holding LLC |  | 82.6 |  |  | 6.5 |  |  | 6.0 |
WG |  | 45.0 |  |  | 75.0 |  |  | 30.0 |
Total |  | $ | 548.6 |  |  | $ | 734.4 |  |  | $ | 538.8 |
NOTE 3—LONG-TERM DEBT The following table shows the future maturities of our long-term debt outstanding as of December 31, 2017:
(in millions) |  |
2018 |  | $ | 300.0 |
2020 |  | 400.0 |
Thereafter |  | 1,200.0 |
Total |  | $ | 1,900.0 |
WECC is our subsidiary and has $50.0 million of long-term notes outstanding. In a Support Agreement between WECC and us, we agreed to make sufficient liquid asset contributions to WECC to permit WECC to service its debt obligations as they become due. NOTE 4—FAIR VALUE MEASUREMENTS The following table shows the financial instruments included on our balance sheets that are not recorded at fair value as of December 31:
|  | 2017 |  | 2016
(in millions) |  | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Long-term note receivable from UMERC |  | $ | 50.0 |  |  | $ | 49.5 |  |  | $ | — |  |  | $ | — |
Long-term debt, including current portion |  | 1,892.3 |  |  | 1,941.5 |  |  | 1,890.0 |  |  | 1,906.1 |
The carrying value of cash and cash equivalents, accounts receivable, short-term notes receivable, accounts payable, and short-term borrowings approximates fair value due to the short-term nature of these instruments. The fair value of our long-term note receivable and long-term debt is estimated based upon the quoted market value for the same issue, similar issues, or upon the quoted market prices of United States Treasury issues having a similar term to maturity, adjusted for the issuing company's bond rating and the present value of future cash flows. These fair values are categorized within Level 2 of the fair value hierarchy. NOTE 5—SUPPLEMENTAL CASH FLOW INFORMATION
(in millions) |  | 2017 |  | 2016 |  | 2015
Cash (paid) for interest |  | $ | (82.5 | ) |  | $ | (89.6 | ) |  | $ | (68.8 | )
Cash received (paid) for income taxes, net |  | 169.9 |  |  | (62.9 | ) |  | 242.9 |
Significant non-cash equity transactions |  |  |  |  |  |
Issuance of short-term note receivable to Bluewater |  | 115.0 |  |  | — |  |  | — |
Issuance of short-term note receivable to UMERC |  | 40.5 |  |  | — |  |  | — |
Settlement of short-term note payable with Bostco |  | 4.8 |  |  | — |  |  | — |
Settlement of short-term note payable with Wisvest |  | — |  |  | 40.0 |  |  | — |
NOTE 6—SHORT-TERM NOTES RECEIVABLE FROM RELATED PARTIES The following table shows our outstanding short-term notes receivable from related parties as of December 31:
(in millions) |  | 2017 |  | 2016
UMERC |  | $ | 38.1 |  |  | $ | — |
Wispark |  | 26.0 |  |  | 15.9 |
Integrys |  | — |  |  | 42.0 |
Bostco |  | — |  |  | 18.5 |
Total |  | $ | 64.1 |  |  | $ | 76.4 |
NOTE 7—SHORT-TERM NOTES PAYABLE TO RELATED PARTIES The following table shows our outstanding short-term notes payable to related parties as of December 31:
(in millions) |  | 2017 |  | 2016
Integrys |  | $ | 278.2 |  |  | $ | — |
WECC |  | 110.2 |  |  | 109.3 |
WBS |  | 16.4 |  |  | 131.1 |
Wisvest |  | 0.9 |  |  | 0.9 |
Bluewater Gas Storage, LLC |  | 0.3 |  |  | — |
Total |  | $ | 406.0 |  |  | $ | 241.3 |

X
- References No definition available. + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.7-05(c)(Schedule II)) -URI http://asc.fasb.org/extlink&oid=6879921&loc=d3e569147-122900 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=96868048&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 235 -Section S99 -Paragraph 2 -Subparagraph (SX 210.9-06) -URI http://asc.fasb.org/extlink&oid=6882215&loc=d3e537971-122884 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(c)(Schedule I)) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration