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Schedule I - Condensed Parent Company Financial Statements | 12 Months Ended
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Dec. 31, 2020
Condensed Financial Information 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) |  | 2020 |  | 2019 |  | 2018
Operating expenses |  | $ | 5.3 |  |  | $ | 4.7 |  |  | $ | 5.0 |
Equity in earnings of subsidiaries |  | 1,283.8 |  |  | 1,210.5 |  |  | 1,108.3 |
Other income, net |  | 1.3 |  |  | 6.3 |  |  | 6.8 |
Interest expense |  | 96.9 |  |  | 122.3 |  |  | 104.1 |
Loss on debt extinguishment |  | 38.4 |  |  | — |  |  | — |
Income before income taxes |  | 1,144.5 |  |  | 1,089.8 |  |  | 1,006.0 |
Income tax benefit |  | 55.4 |  |  | 44.2 |  |  | 53.3 |
Net income attributed to common shareholders |  | $ | 1,199.9 |  |  | $ | 1,134.0 |  |  | $ | 1,059.3 |
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) |  | 2020 |  | 2019 |  | 2018
Net income attributed to common shareholders |  | $ | 1,199.9 |  |  | $ | 1,134.0 |  |  | $ | 1,059.3 |
Other comprehensive income (loss), net of tax |  |  |  |  |  |
Derivatives accounted for as cash flow hedges |  |  |  |  |  |
Net derivative loss, net of tax benefit of $1.6, $1.3, and $0.8, respectively |  | (4.3) |  |  | (3.5) |  |  | (2.1) |
Reclassification of net (gain) loss to net income, net of tax |  | 1.5 |  |  | (0.8) |  |  | (1.2) |
Cumulative effect adjustment from adoption of ASU 2018-02 |  | — |  |  | — |  |  | 1.6 |
Cash flow hedges, net |  | (2.8) |  |  | (4.3) |  |  | (1.7) |
Defined benefit plans |  |  |  |  |  |
Pension and OPEB adjustments arising during the period, net of tax |  | (0.4) |  |  | 0.4 |  |  | (0.9) |
Amortization of pension and OPEB costs included in net periodic benefit cost, net of tax |  | 0.3 |  |  | 0.2 |  |  | 0.2 |
Cumulative effect adjustment from adoption of ASU 2018-02 |  | — |  |  | — |  |  | (0.3) |
Defined benefit plans, net |  | (0.1) |  |  | 0.6 |  |  | (1.0) |
Other comprehensive income (loss) from subsidiaries, net of tax |  | 0.2 |  |  | 2.2 |  |  | (2.8) |
Other comprehensive loss, net of tax |  | (2.7) |  |  | (1.5) |  |  | (5.5) |
Comprehensive income attributed to common shareholders |  | $ | 1,197.2 |  |  | $ | 1,132.5 |  |  | $ | 1,053.8 |
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) |  | 2020 |  | 2019
Assets |  |  |  |
Current assets |  |  |  |
Cash and cash equivalents |  | $ | 4.0 |  |  | $ | 0.5 |
Accounts receivable from related parties |  | 0.7 |  |  | 0.7 |
Notes receivable from related parties |  | 110.8 |  |  | 22.5 |
Prepaid taxes |  | 54.4 |  |  | 46.5 |
Other |  | 0.1 |  |  | — |
Current assets |  | 170.0 |  |  | 70.2 |
Long-term assets |  |  |  |
Investments in subsidiaries |  | 14,248.3 |  |  | 13,433.1 |
Other |  | 15.7 |  |  | 23.0 |
Long-term assets |  | 14,264.0 |  |  | 13,456.1 |
Total assets |  | $ | 14,434.0 |  |  | $ | 13,526.3 |
Liabilities and Equity |  |  |  |
Current liabilities |  |  |  |
Short-term debt |  | $ | 820.4 |  |  | $ | 334.7 |
Current portion of long-term debt |  | — |  |  | 400.0 |
Accounts payable to related parties |  | 31.7 |  |  | 2.5 |
Notes payable to related parties |  | 303.0 |  |  | 489.3 |
Other |  | 19.6 |  |  | 17.9 |
Current liabilities |  | 1,174.7 |  |  | 1,244.4 |
Long-term liabilities |  |  |  |
Long-term debt |  | 2,754.8 |  |  | 2,141.6 |
Other |  | 34.8 |  |  | 26.9 |
Long-term liabilities |  | 2,789.6 |  |  | 2,168.5 |
Common shareholders' equity |  | 10,469.7 |  |  | 10,113.4 |
Total liabilities and equity |  | $ | 14,434.0 |  |  | $ | 13,526.3 |
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) |  | 2020 |  | 2019 |  | 2018
Operating activities |  |  |  |  |  |
Net income attributed to common shareholders |  | $ | 1,199.9 |  |  | $ | 1,134.0 |  |  | $ | 1,059.3 |
Reconciliation to cash provided by operating activities |  |  |  |  |  |
Equity income in subsidiaries, net of distributions |  | (385.7) |  |  | (475.2) |  |  | (419.4) |
Deferred income taxes |  | 12.7 |  |  | 9.1 |  |  | 14.4 |
Loss on debt extinguishment |  | 38.4 |  |  | — |  |  | — |
Change in – |  |  |  |  |  |
Accounts receivable from related parties |  | — |  |  | 3.3 |  |  | (2.1) |
Prepaid taxes |  | (7.9) |  |  | (46.5) |  |  | 17.5 |
Accounts payable to related parties |  | 29.2 |  |  | (5.2) |  |  | 4.6 |
Other current liabilities |  | (2.4) |  |  | 1.5 |  |  | 4.7 |
Other, net |  | 9.6 |  |  | 7.0 |  |  | 5.6 |
Net cash provided by operating activities |  | 893.8 |  |  | 628.0 |  |  | 684.6 |
Investing activities |  |  |  |  |  |
Capital contributions to subsidiaries |  | (1,026.1) |  |  | (602.3) |  |  | (448.7) |
Return of capital from subsidiaries |  | 602.8 |  |  | 337.3 |  |  | 290.2 |
Short-term notes receivable from related parties, net |  | (88.3) |  |  | 48.5 |  |  | (6.9) |
Issuance of long-term notes receivable from UMERC |  | — |  |  | — |  |  | (100.0) |
Redemption of long-term notes receivable from UMERC |  | — |  |  | 150.0 |  |  | — |
Other, net |  | 3.7 |  |  | (0.6) |  |  | 6.4 |
Net cash used in investing activities |  | (507.9) |  |  | (67.1) |  |  | (259.0) |
Financing activities |  |  |  |  |  |
Exercise of stock options |  | 43.8 |  |  | 67.0 |  |  | 29.1 |
Purchase of common stock |  | (99.2) |  |  | (140.1) |  |  | (72.4) |
Dividends paid on common stock |  | (798.0) |  |  | (744.5) |  |  | (697.3) |
Issuance of long-term debt |  | 1,650.0 |  |  | 350.0 |  |  | 600.0 |
Retirement of long-term debt |  | (1,430.0) |  |  | — |  |  | (300.0) |
Issuance of short-term loan |  | 340.0 |  |  | — |  |  | — |
Change in other short-term debt |  | 145.7 |  |  | (213.7) |  |  | 53.6 |
Short-term notes payable to related parties, net |  | (186.3) |  |  | 90.4 |  |  | (6.2) |
Payments for debt extinguishment and issuance costs |  | (47.3) |  |  | (0.8) |  |  | (1.2) |
Other, net |  | (1.1) |  |  | (1.5) |  |  | (2.4) |
Net cash used in financing activities |  | (382.4) |  |  | (593.2) |  |  | (396.8) |
Net change in cash and cash equivalents |  | 3.5 |  |  | (32.3) |  |  | 28.8 |
Cash and cash equivalents at beginning of year |  | 0.5 |  |  | 32.8 |  |  | 4.0 |
Cash and cash equivalents at end of year |  | $ | 4.0 |  |  | $ | 0.5 |  |  | $ | 32.8 |
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. We use the cumulative earnings approach for classifying distributions received in the statements of cash flows. 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) |  | 2020 |  | 2019 |  | 2018
WE |  | $ | 395.0 |  |  | $ | 360.0 |  |  | $ | 310.0 |
We Power |  | 240.9 |  |  | 192.5 |  |  | 223.0 |
ATC Holding (1) |  | 112.6 |  |  | 87.4 |  |  | 105.8 |
WG |  | 70.0 |  |  | 60.0 |  |  | 50.0 |
UMERC |  | 46.0 |  |  | 10.0 |  |  | — |
WECI (2) |  | 33.6 |  |  | 25.4 |  |  | — |
Wisvest |  | — |  |  | — |  |  | 0.1 |
Total |  | $ | 898.1 |  |  | $ | 735.3 |  |  | $ | 688.9 |
(1) We also received amounts classified as return of capital of $19.6 million, $220.6 million, and $290.2 million from ATC Holding during the years ended December 31, 2020, 2019, and 2018, respectively. (2) We also received amounts classified as return of capital of $583.2 million and $116.7 million from WECI during the years ended December 31, 2020 and 2019, respectively. NOTE 3—LONG-TERM DEBT The following table shows the future maturities of our long-term debt outstanding as of December 31, 2020:
(in millions) |  |
2021 |  | $ | — |
2022 |  | — |
2023 |  | 700.0 |
2024 |  | — |
2025 |  | 420.0 |
Thereafter |  | 1,650.0 |
Total |  | $ | 2,770.0 |
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:
|  | 2020 |  | 2019
(in millions) |  | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Long-term debt, including current portion |  | $ | 2,754.8 |  |  | $ | 2,836.9 |  |  | $ | 2,541.6 |  |  | $ | 2,619.4 |
The fair value of our long-term debt is categorized within Level 2 of the fair value hierarchy. NOTE 5—SUPPLEMENTAL CASH FLOW INFORMATION
(in millions) |  | 2020 |  | 2019 |  | 2018
Cash paid for interest |  | $ | 98.5 |  |  | $ | 117.7 |  |  | $ | 102.9 |
Cash received for income taxes, net |  | (61.5) |  |  | (4.9) |  |  | (85.9) |
Significant non-cash investing and financing transactions: |  |  |  |  |  |
Settlement of short-term note payable with Wisvest |  | — |  |  | — |  |  | 0.9 |
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) |  | 2020 |  | 2019
Integrys |  | $ | 68.1 |  |  | $ | — |
UMERC |  | 30.7 |  |  | 9.0 |
Wispark |  | 12.0 |  |  | 13.5 |
Total |  | $ | 110.8 |  |  | $ | 22.5 |
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) |  | 2020 |  | 2019
WBS |  | $ | 149.0 |  |  | $ | 168.9 |
WECC |  | 110.0 |  |  | 111.7 |
Bluewater Gas Storage |  | 44.0 |  |  | 41.8 |
Integrys |  | — |  |  | 166.9 |
Total |  | $ | 303.0 |  |  | $ | 489.3 |

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- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -URI http://asc.fasb.org/extlink&oid=120391182&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=108774443&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690 + Details
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