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Schedule 1 - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

SCHEDULE 1 - Condensed financial information of registrant
Otter Tail Corporation (PARENT COMPANY)
Condensed Balance Sheets, December 31
(in thousands)		2019				2018

Assets
Current Assets
Cash and Cash Equivalents		$	4,959			$	-
Accounts Receivable			-				-
Accounts Receivable from Subsidiaries			2,144				1,931
Interest Receivable from Subsidiaries			117				117
Notes Receivable from Subsidiaries			-				1,167
Income Taxes Receivable			1,487				-
Other			1,050				3,482
Total Current Assets			9,757				6,697
Investments in Subsidiaries			860,646				787,869
Notes Receivable from Subsidiaries			79,251				79,422
Deferred Income Taxes			25,505				21,100
Right of Use Assets - Operating			637				-
Other Assets			35,503				31,547
Total Assets		$	1,011,299			$	926,635

Liabilities and Equity

Current Liabilities
Short-Term Debt		$	6,000			$	9,215
Current Maturities of Long-Term Debt			183				172
Accounts Payable to Subsidiaries			7				7
Notes Payable to Subsidiaries			89,611				60,626
Current Operating Lease Liabilities			156				-
Other			9,473				9,994
Total Current Liabilities			105,430				80,014

Long Term Operating Lease Liabilities			533				-
Other Noncurrent Liabilities			44,042				37,814
Commitments and Contingencies
Capitalization
Long-Term Debt, Net of Current Maturities			79,812				79,944
Common Shareholder Equity			781,482				728,863
Total Capitalization			861,294				808,807
Total Liabilities and Equity		$	1,011,299			$	926,635

See accompanying notes to condensed financial statements.

Otter Tail Corporation (PARENT COMPANY)
Condensed Statements of Income--For the Years Ended December 31
(in thousands)		2019				2018				2017

Operating Loss
Revenue from Contracts with Customers		$	-			$	-			$	-
Operating Expenses			10,529				9,916				7,138
Operating Loss			(10,529	)			(9,916	)			(7,138	)

Other Income (Expense)
Equity Income in Earnings of Subsidiaries			93,731				91,446				82,715
Interest Charges			(4,863	)			(4,043	)			(4,270	)
Interest Charges to Subsidiaries			(306	)			(387	)			(244	)
Interest Income from Subsidiaries			3,063				2,839				2,848
Nonservice Cost Components of Postretirement Benefits			(1,297	)			(1,422	)			(1,215	)
Other Income			1,566				550				1,054
Total Other Income			91,894				88,983				80,888

Income Before Income Taxes			81,365				79,067				73,750
Income Tax (Benefit) Expense			(5,482	)			(3,278	)			1,311
Net Income		$	86,847			$	82,345			$	72,439

See accompanying notes to condensed financial statements.

Otter Tail Corporation (PARENT COMPANY)
Condensed Statements of Cash Flows--For the Years Ended December 31
(in thousands)		2019				2018				2017
Cash Flows from Operating Activities
Net Cash Provided by Operating Activities		$	52,263			$	56,947			$	50,205

Cash Flows from Investing Activities
Investment in Subsidiaries			(34,990	)			(24,764	)			-
Debt Repaid by Subsidiaries			1,338				774				151
Cash Used in Investing Activities			(257	)			(623	)			(121	)
Net Cash (Used in) Provided by Investing Activities			(33,909	)			(24,613	)			30

Cash Flows from Financing Activities
Change in Checks Written in Excess of Cash			(31	)			31				-
Net Short-Term (Repayments) Borrowings			(3,215	)			9,215				-
Borrowings from (Repayments to) Subsidiaries			28,985				(1,281	)			23,389
Proceeds from Issuance of Common Stock			20,338				-				4,349
Common Stock Issuance Expenses			(577	)			(108	)			-
Payments for Retirement of Capital Stock			(2,730	)			(3,011	)			(1,799	)
Short-Term and Long-Term Debt Issuance Expenses			(270	)			(164	)			(158	)
Payments for Retirement of Long-Term Debt			(172	)			(189	)			(15,231	)
Dividends Paid			(55,723	)			(53,198	)			(50,632	)
Net Cash Used in Financing Activities			(13,395	)			(48,705	)			(40,082	)
Net Change in Cash and Cash Equivalents			4,959				(16,371	)			10,153
Cash and Cash Equivalents at Beginning of Period			-				16,371				6,218
Cash and Cash Equivalents at End of Period		$	4,959			$	-			$	16,371

See accompanying notes to condensed financial statements.

Otter Tail Corporation (Parent Company)

Notes to Condensed Financial Statements

For the years ended December 31, 2019, 2018 and 2017

Incorporated by reference are Otter Tail Corporation’s consolidated statements of comprehensive income and common shareholders’ equity in Part II, Item 8.

Basis of Presentation

The condensed financial information of Otter Tail Corporation is presented to comply with Rule 12-04 of Regulation S-X. The unconsolidated condensed financial statements do not reflect all of the information and notes normally included with financial statements prepared in accordance with GAAP. Therefore, these condensed financial statements should be read with the consolidated financial statements and related notes included in this report on Form 10-K.

Otter Tail Corporation’s investments in subsidiaries are presented under the equity method of accounting. Under this method, the assets and liabilities of subsidiaries are not consolidated. The investments in net assets of the subsidiaries are recorded in the balance sheets. The income from operations of the subsidiaries is reported on a net basis as equity income in earnings of subsidiaries.

Related Party Transactions

As of December 31, 2019: (in thousands)		Accounts Receivable				Interest Receivable				Current Notes Receivable				Long-Term Notes Receivable				Accounts Payable				Current Notes Payable
Otter Tail Power Company		$	2,056			$	-			$	-			$	-			$	7			$	-
Northern Pipe Products, Inc.			-				8				-				5,351				-				3,056
Vinyltech Corporation			4				17				-				11,500				-				15,099
BTD Manufacturing, Inc.			-				77				-				52,000				-				18,474
T.O. Plastics, Inc.			-				15				-				10,400				-				3,099
Varistar Corporation			-				-				-				-				-				49,883
Otter Tail Assurance Limited			84				-				-				-				-				-
		$	2,144			$	117			$	-			$	79,251			$	7			$	89,611

As of December 31, 2018: (in thousands)		Accounts Receivable				Interest Receivable				Current Notes Receivable				Long-Term Notes Receivable				Accounts Payable				Current Notes Payable
Otter Tail Power Company		$	1,877			$	-			$	-			$	-			$	7			$	-
Northern Pipe Products, Inc.			-				8				-				5,522				-				5,623
Vinyltech Corporation			4				17				-				11,500				-				15,305
BTD Manufacturing, Inc.			-				77				415				52,000				-				-
T.O. Plastics, Inc.			-				15				-				10,400				-				14,308
Varistar Corporation			-				-				752				-				-				25,390
Otter Tail Assurance Limited			50				-				-				-				-				-
		$	1,931			$	117			$	1,167			$	79,422			$	7			$	60,626

Dividends

Dividends paid to Otter Tail Corporation (the Parent) from its subsidiaries were as follows:

(in thousands)		2019				2018				2017
Cash Dividends Paid to Parent by Subsidiaries		$	55,660			$	53,134			$	50,571

See Otter Tail Corporation’s notes to consolidated financial statements in Part II, Item 8 for other disclosures.

Other schedules are omitted because of the absence of the conditions under which they are required, because the amounts are insignificant or because the information required is included in the financial statements or the notes thereto.