XML 23 R10.htm IDEA: XBRL DOCUMENT
v3.20.2

Operations and Significant Accounting Policies | 6 Months Ended
--- | ---
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Operations and Significant Accounting Policies [Text Block] | NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Cash, Cash Equivalents and Restricted Cash. We consider all investments purchased with original maturities of three months or less to be cash equivalents. As of June 30, 2020, restricted cash amounts included in Prepayments and Other on the Consolidated Balance Sheet include collateral deposits required under ALLETE Clean Energy loan and tax equity financing agreements. The restricted cash amounts included in Other Non-Current Assets represent collateral deposits required under ALLETE Clean Energy PSAs and construction projects. In December 31, 2018 balance presented, the amount also includes deposits from a SWL&P customer in aid of future capital expenditures. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheet that aggregate to the amounts presented in the Consolidated Statement of Cash Flows.
Cash, Cash Equivalents and Restricted Cash | June 30, 2020 |  | December 31, 2019 |  | June 30, 2019 |  | December 31, 2018
Millions |  |  |  |  |  |  |
Cash and Cash Equivalents | $25.7 |  |  | $69.3 |  |  | $203.1 |  |  | $69.1 |
Restricted Cash included in Prepayments and Other | 7.3 |  |  | 2.8 |  |  | 0.9 |  |  | 1.3 |
Restricted Cash included in Other Non-Current Assets | 4.4 |  |  | 20.4 |  |  | 2.6 |  |  | 8.6 |
Cash, Cash Equivalents and Restricted Cash on the Consolidated Statement of Cash Flows | $37.4 |  |  | $92.5 |  |  | $206.6 |  |  | $79.0 |
Inventories – Net. Inventories are stated at the lower of cost or net realizable value. Inventories in our Regulated Operations segment are carried at an average cost or first-in, first-out basis. Inventories in our ALLETE Clean Energy segment and Corporate and Other businesses are carried at an average cost, first-in, first-out or specific identification basis.
Inventories – Net | June 30, 2020 |  | December 31, 2019
Millions |  |  |
Fuel (a) | $33.5 |  |  | $25.9 |
Materials and Supplies | 48.5 |  |  | 46.9 |
Total Inventories – Net | $82.0 |  |  | $72.8 |
(a) Fuel consists primarily of coal inventory at Minnesota Power. NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
Other Non-Current Assets | June 30, 2020 |  | December 31, 2019
Millions |  |  |
Contract Assets (a) | $26.7 |  |  | $28.0 |
Operating Lease Right-of-use Assets | 25.4 |  |  | 28.6 |
ALLETE Properties | 21.5 |  |  | 21.9 |
Restricted Cash | 4.4 |  |  | 20.4 |
Other Postretirement Benefit Plans | 38.4 |  |  | 37.5 |
Other | 84.7 |  |  | 81.8 |
Total Other Non-Current Assets | $201.1 |  |  | $218.2 |
(a) Contract Assets consist of payments made to customers as an incentive to execute or extend service agreements. The contract payments are being amortized over the term of the respective agreements as a reduction to revenue.
Other Current Liabilities | June 30, 2020 |  | December 31, 2019
Millions |  |  |
PSAs | $12.4 |  |  | $12.3 |
Provision for Interim Rate Refund (a) | 11.7 |  |  | — |
Operating Lease Liabilities | 6.6 |  |  | 6.9 |
Other | 34.7 |  |  | 41.2 |
Total Other Current Liabilities | $65.4 |  |  | $60.4 |
(a)Provision for Interim Rate Refund represents reserves for interim rates resulting from the MPUC’s approval of Minnesota Power’s petition and proposal to resolve and withdraw its rate case. (See Note 2. Regulatory Matters.)
Other Non-Current Liabilities | June 30, 2020 |  | December 31, 2019
Millions |  |  |
Asset Retirement Obligation | $164.8 |  |  | $160.3 |
PSAs | 58.3 |  |  | 64.6 |
Operating Lease Liabilities | 18.8 |  |  | 21.8 |
Other | 46.2 |  |  | 46.3 |
Total Other Non-Current Liabilities | $288.1 |  |  | $293.0 |
Other Income |  |
Six Months Ended June 30, | 2020 | 2019
Millions |  |
Pension and Other Postretirement Benefit Plan Non-Service Credits (a) | $4.8 |  | $3.6 |
Interest and Investment Income (Loss) | (0.5) |  | 2.5 |
AFUDC - Equity | 1.4 |  | 1.3 |
Gain on Land Sales | 0.1 |  | 2.0 |
Other | 0.4 |  | 2.2 |
Total Other Income | $6.2 |  | $11.6 |
(a)These are components of net periodic pension and other postretirement benefit cost other than service cost. (See Note 9. Pension and Other Postretirement Benefit Plans.) NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Supplemental Statement of Cash Flows Information.
Six Months Ended June 30, | 2020 |  | 2019
Millions |  |  |
Cash Paid for Interest – Net of Amounts Capitalized | $30.9 |  |  | $33.8 |
Recognition of Right-of-use Assets and Lease Liabilities | — |  |  | $31.2 |
Noncash Investing and Financing Activities |  |  |
Increase (Decrease) in Accounts Payable for Capital Additions to Property, Plant and Equipment | $(67.5) |  | $21.1 |
Capitalized Asset Retirement Costs | $2.1 |  |  | $1.4 |
AFUDC–Equity | $1.4 |  |  | $1.3 |
Sale of U.S. Water Services. In February 2019, the Company entered into a stock purchase agreement providing for the sale of U.S. Water Services to a subsidiary of Kurita Water Industries Ltd. In March 2019, ALLETE completed the sale and received approximately $270 million in cash, net of transaction costs and cash retained. The gain on sale of U.S. Water Services in 2019 was $13.2 million after-tax. ALLETE Clean Energy Asset Acquisition. On March 10, 2020, ALLETE Clean Energy acquired the rights to the approximately 300 MW Caddo wind project in Oklahoma from Apex Clean Energy for approximately $8 million with additional payments required to be made at defined milestones. The full development of this wind project will involve the sale of energy to corporate customers under long-term power sales agreements. Non-Controlling Interest in Subsidiaries. Non-controlling interest in subsidiaries on the Consolidated Balance Sheet and net loss attributable to non-controlling interest on the Consolidated Statement of Income represent the portion of equity ownership and earnings, respectively, of subsidiaries that are not attributable to equity holders of ALLETE. These amounts as of and during the quarter and six months ended June 30, 2020, related to the tax equity financing structure for ALLETE Clean Energy’s 106 MW Glen Ullin and 80 MW South Peak wind energy facilities. On April 16, 2020, ALLETE Clean Energy commenced operations of South Peak, an 80 MW wind energy facility in Montana, and on April 29, 2020, received $67.8 million in cash, net of issuance costs, from a third-party investor as part of a tax equity financing for this wind energy facility. Subsequent Events. The Company performed an evaluation of subsequent events for potential recognition and disclosure through the date of the financial statements issuance. New Accounting Pronouncements. Credit Losses. In 2016, the FASB issued an accounting standard update that requires entities to recognize an allowance for expected credit losses for financial instruments within its scope. Examples of financial instruments within the scope include trade receivables, certain financial guarantees, and held-to-maturity debt securities. The allowance for expected credit losses should be based on historical information, current conditions and reasonable and supportable forecasts. The new standard also revises the other-than-temporary impairment model for available-for-sale debt securities. The new guidance became effective January 1, 2020, and was adopted by the Company in the first quarter of 2020. Adoption of this standard did not have a material impact on our Consolidated Financial Statements.

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

X
- Definition The entire disclosure for the general note to the financial statements for the reporting entity which may include, descriptions of the basis of presentation, business description, significant accounting policies, consolidations, reclassifications, new pronouncements not yet adopted and changes in accounting principles. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -URI http://asc.fasb.org/topic&trid=2197479 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -URI http://asc.fasb.org/topic&trid=2134479 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
Name: | us-gaap_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration