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Leases | 12 Months Ended
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Dec. 31, 2019
Leases [Abstract] |
Leases | Leases - MGE Energy and MGE. As part of its regular operations, MGE enters into various contracts related to IT equipment, substations, cell towers, land, wind easements, and other property in use for operations. A contract is or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Determination as to whether an arrangement is or contains a lease is completed at inception. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets; lease expense for these leases are recognized on a straight-line basis over the lease term. Leases with initial terms in excess of 12 months are recorded as operating or financing leases on the consolidated balance sheets. Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. For leases that do not provide an implicit rate, a collateralized incremental borrowing rate based on the information available at commencement date, including lease term, is used in determining the present value of future payments. The operating lease asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Operating lease expense is recognized on a straight-line basis over the lease term. MGE has regulatory treatment and recognizes regulatory assets or liabilities for timing differences between when net lease costs are recorded and when costs are recognized. As of December 31, 2019, MGE has no significant leases not yet commenced that would create significant future rights and obligations. The following table shows lease expense for the year ended December 31, 2019:
| (In thousands) |  |  |  | Income Statement Location |
| Finance lease expense: |  |  |  |  |
| Amortization of leased assets | $ | 1,524 |  | Depreciation and amortization |
| Interest on lease liabilities |  | 792 |  | Interest expense, net |
| Operating lease expense |  | 144 |  | Other operations and maintenance |
| Total lease expense | $ | 2,460 |  |  |
The following table shows the lease assets and liabilities on the consolidated balance sheet as of December 31, 2019:
| (In thousands) |  |  |  | Balance Sheet Location |
| Lease assets: |  |  |  |  |
| Finance lease assets | $ | 15,895 |  | Property, plant, and equipment, net |
| Operating lease assets |  | 671 |  | Other deferred assets and other |
| Total lease assets | $ | 16,566 |  |  |
| Lease liabilities: |  |  |  |  |
| Finance lease liabilities - current | $ | 888 |  | Other current liabilities |
| Finance lease liabilities - long-term |  | 17,379 |  | Finance lease liabilities |
| Operating lease liabilities - current |  | 203 |  | Other current liabilities |
| Operating lease liabilities - long-term |  | 496 |  | Other deferred liabilities and other |
| Total lease liabilities | $ | 18,966 |  |  |
The following table shows other lease information for the year ended December 31, 2019:
| (In thousands) |  |  |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| Finance leases - Financing cash flows | $ | 945 |
| Finance leases - Operating cash flows |  | 792 |
| Operating leases - Operating cash flows |  | 134 |
| Lease assets obtained in exchange for lease liabilities: |  |  |
| Finance leases |  | 12,101 |
| Operating leases |  | 657 |
The following table shows the weighted average remaining lease terms and discounts as of December 31, 2019:
| Weighted-average remaining lease terms (in years): |  |  |  |
| Finance leases |  | 39 |  |
| Operating leases |  | 15 |  |
| Weighted-average discount rates: |  |  |  |
| Finance leases |  | 4.37 | % |
| Operating leases |  | 3.32 | % |
The following table shows maturities of lease liabilities as of December 31, 2019:
| (In thousands) |  | Finance |  | Operating |
| 2020 | $ | 1,649 | $ | 223 |
| 2021 |  | 1,434 |  | 154 |
| 2022 |  | 1,315 |  | 87 |
| 2023 |  | 1,233 |  | 12 |
| 2024 |  | 774 |  | 12 |
| Thereafter |  | 40,542 |  | 461 |
| Subtotal |  | 46,947 |  | 949 |
| Less: Present value discount |  | (28,680) |  | (250) |
| Lease Liability | $ | 18,267 | $ | 699 |
The following table shows maturities of lease liabilities as of December 31, 2018:
| (In thousands) |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  | Thereafter |
| Minimum lease payments | $ | 1,646 | $ | 1,371 | $ | 1,095 | $ | 989 | $ | 975 | $ | 22,707 |

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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