SEGMENT INFORMATION

We use operating income to measure segment profitability and to allocate resources to our businesses. At December 31, 2018, we reported six segments, which are described below.


•	The Wisconsin segment includes the electric and natural gas utility operations of WE, WG, WPS, and UMERC.


•	The Illinois segment includes the natural gas utility and non-utility operations of PGL and NSG.


•	The other states segment includes the natural gas utility and non-utility operations of MERC and MGU.

•

The electric transmission segment includes our approximate 60% ownership interest in ATC, a for-profit, transmission-only company regulated by the FERC for cost of service and certain state regulatory commissions for routing and siting of transmission projects, and our approximate 75% ownership interest in ATC Holdco, which invests in transmission-related projects outside of ATC's traditional footprint.

•

The non-utility energy infrastructure segment includes We Power, which owns and leases generating facilities to WE, Bluewater, which owns underground natural gas storage facilities in Michigan that provide approximately one-third of the current storage needs for our Wisconsin natural gas utilities, our 90% membership interest in Bishop Hill III, a wind generating facility located in Henry County, Illinois, and our 80% membership interest in Coyote Ridge, a wind generating facility under construction in Brookings County, South Dakota. See Note 2, Acquisitions, for more information on Bluewater, Bishop Hill III, and Coyote Ridge.

•

The corporate and other segment includes the operations of the WEC Energy Group holding company, the Integrys holding company, the PELLC holding company, Wispark, Bostco, Wisvest, WECC, WBS, PDL, and ITF. In the first quarter of 2017, we sold substantially all of the remaining assets of Bostco, and, in October 2018, Bostco was dissolved. In the second quarter of 2016, we sold certain assets of Wisvest, which no longer has significant operations, and in the first quarter of 2016, the sale of ITF was completed. See Note 3, Dispositions, for more information on these sales.

All of our operations and assets are located within the United States. The following tables show summarized financial information related to our reportable segments for the years ended December 31, 2018, 2017, and 2016.



	Utility Operations
2018 (in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Electric Transmission		Non-Utility Energy Infrastructure		Corporate and Other			Reconciling Eliminations			WEC Energy Group Consolidated
External revenues	$	5,794.7	$	1,400.0	$	438.2	$	7,632.9	$	—	$	37.9	$	8.7		$	—		$	7,679.5
Intersegment revenues	—		—		—		—		—		430.5		—			(430.5		)	—
Other operation and maintenance	2,076.1		472.3		101.0		2,649.4		—		12.6		1.8			(393.3		)	2,270.5
Depreciation and amortization	546.6		170.3		24.1		741.0		—		75.7		29.1			—			845.8
Operating income (loss)	800.2		255.8		68.8		1,124.8		—		365.8		(22.2		)	—			1,468.4
Equity in earnings of transmission affiliates	—		—		—		—		136.7		—		—			—			136.7
Interest expense	200.7		51.2		8.7		260.6		0.3		63.7		125.8			(5.3		)	445.1
Capital expenditures and asset acquisitions	1,466.1		547.1		103.6		2,116.8		—		260.6		39.7			—			2,417.1
Total assets *	23,407.0		6,483.3		1,147.9		31,038.2		1,665.3		3,227.2		959.6			(3,414.5		)	33,475.8


*	Total assets at December 31, 2018 reflect an elimination of $1,968.5 million for all lease activity between We Power and WE.



	Utility Operations
2017 (in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Electric Transmission		Non-Utility Energy Infrastructure		Corporate and Other			Reconciling Eliminations			WEC Energy Group Consolidated
External revenues	$	5,829.2	$	1,355.5	$	411.2	$	7,595.9	$	—	$	38.9	$	13.7		$	—		$	7,648.5
Intersegment revenues	—		—		—		—		—		446.3		—			(446.3		)	—
Other operation and maintenance ⁽¹⁾	1,923.2		464.2		101.1		2,488.5		—		7.3		1.4			(441.1		)	2,056.1
Depreciation and amortization	523.9		152.6		24.8		701.3		—		71.4		25.9			—			798.6
Operating income (loss) ⁽¹⁾	1,055.2		279.9		54.4		1,389.5		—		400.5		(13.9		)	—			1,776.1
Equity in earnings of transmission affiliates	—		—		—		—		154.3		—		—			—			154.3
Interest expense	193.7		45.0		8.7		247.4		—		62.8		107.3			(1.8		)	415.7
Capital expenditures	1,152.3		545.2		74.5		1,772.0		—		35.4		152.1			—			1,959.5
Total assets ⁽²⁾	22,237.1		6,144.7		1,067.8		29,449.6		1,593.4		2,992.8		953.6			(3,398.9		)	31,590.5


⁽¹⁾	Includes the retroactive restatement impacts of the implementation of ASU 2017-07. See Note 18, Employee Benefits, for more information on this new standard.


⁽²⁾	Total assets at December 31, 2017 reflect an elimination of $2,038.1 million for all lease activity between We Power and WE.



	Utility Operations
2016 (in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Electric Transmission		Non-Utility Energy Infrastructure		Corporate and Other			Reconciling Eliminations			WEC Energy Group Consolidated
External revenues	$	5,805.4	$	1,242.2	$	376.5	$	7,424.1	$	—	$	24.9	$	23.3		$	—		$	7,472.3
Intersegment revenues	0.3		—		—		0.3		—		423.3		—			(423.6		)	—
Other operation and maintenance ⁽¹⁾	2,034.6		463.6		108.8		2,607.0		—		4.3		(16.4		)	(423.6		)	2,171.3
Depreciation and amortization	496.6		134.0		21.1		651.7		—		68.3		42.6			—			762.6
Operating income (loss) ⁽¹⁾	1,017.8		261.1		51.2		1,330.1		—		375.6		(9.4		)	—			1,696.3
Equity in earnings of transmission affiliate	—		—		—		—		146.5		—		—			—			146.5
Interest expense	180.9		38.9		8.5		228.3		—		62.1		120.9			(8.6		)	402.7
Capital expenditures	910.9		293.2		59.5		1,263.6		—		62.3		97.8			—			1,423.7
Total assets ⁽²⁾	21,730.7		5,714.6		995.1		28,440.4		1,476.9		2,777.1		778.0			(3,349.2		)	30,123.2


⁽¹⁾	Includes the retroactive restatement impacts of the implementation of ASU 2017-07. See Note 18, Employee Benefits, for more information on this new standard.


⁽²⁾	Total assets at December 31, 2016 reflect an elimination of $2,029.5 million for all lease activity between We Power and WE.