Leases

3 Months Ended

Mar. 31, 2019

LEASES

Operating Leases - Alliant Energy’s, IPL’s and WPL’s operating leases primarily include leases of space on telecommunication towers and leases of property. Operating lease details are as follows (dollars in millions):



	Alliant Energy			IPL			WPL
March 31, 2019
Property, plant and equipment, net		$18			$10			$7
Other current liabilities		$3			$1			$1
Other liabilities	15			9			6
Total operating lease liabilities		$18			$10			$7
Three Months Ended March 31, 2019
Operating lease cost		$1			$—			$—
Weighted average remaining lease term	12 years			13 years			10 years
Weighted average discount rate	4		%	4		%	4		%

Finance Lease - WPL’s finance lease is an agreement for WPL to lease the Sheboygan Falls Energy Facility from AEF’s Non-utility Generation business through 2025, the initial lease term. WPL is responsible for the operation of the EGU and has exclusive rights to its output. This finance lease contains two lease renewal periods, which are not included in the finance lease obligation, as well as an option to purchase the facility at the end of the initial lease term. WPL’s retail and wholesale rates include recovery of the Sheboygan Falls Energy Facility lease payments. WPL’s finance lease details are as follows (dollars in millions):



March 31, 2019
Property, plant and equipment, net		$37
Other current liabilities		$8
Finance lease obligations - Sheboygan Falls Energy Facility	58
Total finance lease liabilities		$66
Three Months Ended March 31, 2019
Depreciation expense		$1
Interest expense	2
Total finance lease expense		$3
Remaining lease term	6 years
Discount rate	11		%

Expected Maturities - As of March 31, 2019, expected maturities of lease liabilities were as follows (in millions):



	Remainder of 2019		2020		2021		2022		2023		Thereafter		Total		Less: amount representing interest		Present value of minimum lease payments
Operating Leases:
Alliant Energy		$2		$2		$2		$2		$2		$13		$23		$5		$18
IPL	1		1		1		1		1		9		14		4		10
WPL	1		1		1		1		1		3		8		1		7
WPL’s Finance Lease:
Sheboygan Falls Energy Facility	11		15		15		15		15		20		91		25		66

Prior period amounts have not been restated to reflect the adoption of the new lease accounting standard and continue to be reported under the accounting standards in effect for those periods. As of December 31, 2018, future minimum operating (excluding contingent rentals) and capital lease payments were as follows (in millions):



	2019		2020		2021		2022		2023		Thereafter		Total		Less: amount representing interest		Present value of minimum capital lease payments
Operating Leases:
Alliant Energy		$5		$5		$3		$3		$2		$12		$30
IPL	3		2		2		2		2		12		23
WPL	2		3		1		—		—		—		6
WPL’s Capital Lease:
Sheboygan Falls Energy Facility		$15		$15		$15		$15		$15		$19		$94		$26		$68

IPL [Member]

Leases [Line Items]

Operating Leases

LEASES



	Alliant Energy			IPL			WPL
March 31, 2019
Property, plant and equipment, net		$18			$10			$7
Other current liabilities		$3			$1			$1
Other liabilities	15			9			6
Total operating lease liabilities		$18			$10			$7
Three Months Ended March 31, 2019
Operating lease cost		$1			$—			$—
Weighted average remaining lease term	12 years			13 years			10 years
Weighted average discount rate	4		%	4		%	4		%



March 31, 2019
Property, plant and equipment, net		$37
Other current liabilities		$8
Finance lease obligations - Sheboygan Falls Energy Facility	58
Total finance lease liabilities		$66
Three Months Ended March 31, 2019
Depreciation expense		$1
Interest expense	2
Total finance lease expense		$3
Remaining lease term	6 years
Discount rate	11		%

Expected Maturities - As of March 31, 2019, expected maturities of lease liabilities were as follows (in millions):



	Remainder of 2019		2020		2021		2022		2023		Thereafter		Total		Less: amount representing interest		Present value of minimum lease payments
Operating Leases:
Alliant Energy		$2		$2		$2		$2		$2		$13		$23		$5		$18
IPL	1		1		1		1		1		9		14		4		10
WPL	1		1		1		1		1		3		8		1		7
WPL’s Finance Lease:
Sheboygan Falls Energy Facility	11		15		15		15		15		20		91		25		66



	2019		2020		2021		2022		2023		Thereafter		Total		Less: amount representing interest		Present value of minimum capital lease payments
Operating Leases:
Alliant Energy		$5		$5		$3		$3		$2		$12		$30
IPL	3		2		2		2		2		12		23
WPL	2		3		1		—		—		—		6
WPL’s Capital Lease:
Sheboygan Falls Energy Facility		$15		$15		$15		$15		$15		$19		$94		$26		$68

WPL [Member]

Leases [Line Items]

Operating Leases

LEASES



	Alliant Energy			IPL			WPL
March 31, 2019
Property, plant and equipment, net		$18			$10			$7
Other current liabilities		$3			$1			$1
Other liabilities	15			9			6
Total operating lease liabilities		$18			$10			$7
Three Months Ended March 31, 2019
Operating lease cost		$1			$—			$—
Weighted average remaining lease term	12 years			13 years			10 years
Weighted average discount rate	4		%	4		%	4		%



March 31, 2019
Property, plant and equipment, net		$37
Other current liabilities		$8
Finance lease obligations - Sheboygan Falls Energy Facility	58
Total finance lease liabilities		$66
Three Months Ended March 31, 2019
Depreciation expense		$1
Interest expense	2
Total finance lease expense		$3
Remaining lease term	6 years
Discount rate	11		%

Expected Maturities - As of March 31, 2019, expected maturities of lease liabilities were as follows (in millions):



	Remainder of 2019		2020		2021		2022		2023		Thereafter		Total		Less: amount representing interest		Present value of minimum lease payments
Operating Leases:
Alliant Energy		$2		$2		$2		$2		$2		$13		$23		$5		$18
IPL	1		1		1		1		1		9		14		4		10
WPL	1		1		1		1		1		3		8		1		7
WPL’s Finance Lease:
Sheboygan Falls Energy Facility	11		15		15		15		15		20		91		25		66



	2019		2020		2021		2022		2023		Thereafter		Total		Less: amount representing interest		Present value of minimum capital lease payments
Operating Leases:
Alliant Energy		$5		$5		$3		$3		$2		$12		$30
IPL	3		2		2		2		2		12		23
WPL	2		3		1		—		—		—		6
WPL’s Capital Lease:
Sheboygan Falls Energy Facility		$15		$15		$15		$15		$15		$19		$94		$26		$68

Finance Leases

LEASES



	Alliant Energy			IPL			WPL
March 31, 2019
Property, plant and equipment, net		$18			$10			$7
Other current liabilities		$3			$1			$1
Other liabilities	15			9			6
Total operating lease liabilities		$18			$10			$7
Three Months Ended March 31, 2019
Operating lease cost		$1			$—			$—
Weighted average remaining lease term	12 years			13 years			10 years
Weighted average discount rate	4		%	4		%	4		%



March 31, 2019
Property, plant and equipment, net		$37
Other current liabilities		$8
Finance lease obligations - Sheboygan Falls Energy Facility	58
Total finance lease liabilities		$66
Three Months Ended March 31, 2019
Depreciation expense		$1
Interest expense	2
Total finance lease expense		$3
Remaining lease term	6 years
Discount rate	11		%

Expected Maturities - As of March 31, 2019, expected maturities of lease liabilities were as follows (in millions):



	Remainder of 2019		2020		2021		2022		2023		Thereafter		Total		Less: amount representing interest		Present value of minimum lease payments
Operating Leases:
Alliant Energy		$2		$2		$2		$2		$2		$13		$23		$5		$18
IPL	1		1		1		1		1		9		14		4		10
WPL	1		1		1		1		1		3		8		1		7
WPL’s Finance Lease:
Sheboygan Falls Energy Facility	11		15		15		15		15		20		91		25		66



	2019		2020		2021		2022		2023		Thereafter		Total		Less: amount representing interest		Present value of minimum capital lease payments
Operating Leases:
Alliant Energy		$5		$5		$3		$3		$2		$12		$30
IPL	3		2		2		2		2		12		23
WPL	2		3		1		—		—		—		6
WPL’s Capital Lease:
Sheboygan Falls Energy Facility		$15		$15		$15		$15		$15		$19		$94		$26		$68