Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

The following table shows segment information for MGE Energy's and MGE's operations:

(In thousands)MGE Energy		Electric		Gas		Non-Regulated Energy		Transmission Investment		All Others		Consolidation/ Elimination Entries		Consolidated Total
Year Ended December 31, 2018
Operating revenues	$	400,882	$	157,767	$	1,119	$	-	$	-	$	-	$	559,768
Interdepartmental revenues		(289)		16,076		39,526		-		-		(55,313)		-
Total operating revenues		400,593		173,843		40,645		-		-		(55,313)		559,768
Depreciation and amortization		(38,925)		(10,060)		(7,427)		-		-		-		(56,412)
Other operating expenses		(297,374)		(145,883)		(144)		(16)		(1,045)		55,313		(389,149)
Operating income (loss)		64,294		17,900		33,074		(16)		(1,045)		-		114,207
Other income (deductions), net		7,294		3,132		-		8,602		(1,973)		-		17,055
Interest (expense) income, net		(12,198)		(3,692)		(5,307)		-		1,588		-		(19,609)
Income (loss) before taxes		59,390		17,340		27,767		8,586		(1,430)		-		111,653
Income tax (provision) benefit		(13,453)		(4,474)		(7,534)		(2,345)		372		-		(27,434)
Net income (loss)	$	45,937	$	12,866	$	20,233	$	6,241	$	(1,058)	$	-	$	84,219

Year Ended December 31, 2017
Operating revenues	$	413,926	$	148,825	$	348	$	-	$	-	$	-	$	563,099
Interdepartmental revenues		(510)		14,974		44,468		-		-		(58,932)		-
Total operating revenues		413,416		163,799		44,816		-		-		(58,932)		563,099
Depreciation and amortization		(36,660)		(9,000)		(7,417)		-		-		-		(53,077)
Other operating expenses^(a)		(308,100)		(135,029)		(190)		(9)		(1,001)		58,932		(385,397)
Operating income (loss)		68,656		19,770		37,209		(9)		(1,001)		-		124,625
Other income (deductions), net^(a)		4,539		1,912		-		9,844		(1,896)		-		14,399
Interest (expense) income, net		(11,257)		(3,234)		(5,533)		-		700		-		(19,324)
Income (loss) before taxes		61,938		18,448		31,676		9,835		(2,197)		-		119,700
Income tax (provision) benefit^(b)		(20,547)		(7,303)		8,860		(3,954)		850		-		(22,094)
Net income (loss)	$	41,391	$	11,145	$	40,536	$	5,881	$	(1,347)	$	-	$	97,606

Year Ended December 31, 2016
Operating revenues	$	409,006	$	134,543	$	1,196	$	-	$	-	$	-	$	544,745
Interdepartmental revenues		1,912		21,378		43,930		-		-		(67,220)		-
Total operating revenues		410,918		155,921		45,126		-		-		(67,220)		544,745
Depreciation and amortization		(29,122)		(8,128)		(7,372)		-		(24)		-		(44,646)
Other operating expenses^(a)		(313,649)		(128,721)		(155)		(17)		(895)		67,220		(376,217)
Operating income (loss)		68,147		19,072		37,599		(17)		(919)		-		123,882
Other income, net^(a)		3,668		1,668		-		8,429		292		-		14,057
Interest (expense) income, net		(11,147)		(3,223)		(5,768)		-		272		-		(19,866)
Income (loss) before taxes		60,668		17,517		31,831		8,412		(355)		-		118,073
Income tax (provision) benefit		(20,115)		(6,894)		(12,775)		(2,836)		107		-		(42,513)
Net income (loss)	$	40,553	$	10,623	$	19,056	$	5,576	$	(248)	$	-	$	75,560

(a) Reflects retrospective application of new accounting pronouncement related to pension and other postretirement benefits. See Footnote
2 for further information.
(b) In December 2017, there was a $21.7 million one-time tax impact as a result of the Tax Act. See Footnote 12 for further information.

(In thousands)MGE		Electric		Gas		Non-Regulated Energy		Transmission Investment^(d)		Consolidation/ Elimination Entries		Consolidated Total
Year Ended December 31, 2018
Operating revenues	$	400,882	$	157,767	$	1,119	$	-	$	-	$	559,768
Interdepartmental revenues		(289)		16,076		39,526		-		(55,313)		-
Total operating revenues		400,593		173,843		40,645		-		(55,313)		559,768
Depreciation and amortization		(38,925)		(10,060)		(7,427)		-		-		(56,412)
Other operating (expenses) income^(c)		(310,626)		(150,195)		(7,678)		-		55,313		(413,186)
Operating income^(c)		51,042		13,588		25,540		-		-		90,170
Other income, net^(c)		7,093		2,970		-		-		-		10,063
Interest expense, net		(12,198)		(3,692)		(5,307)		-		-		(21,197)
Net income		45,937		12,866		20,233		-		-		79,036
Less: Net income attributable to
noncontrolling interest, net of tax		-		-		-		-		(22,552)		(22,552)
Net income attributable to MGE	$	45,937	$	12,866	$	20,233	$	-	$	(22,552)	$	56,484

Year Ended December 31, 2017
Operating revenues	$	413,929	$	148,834	$	348	$	-	$	-	$	563,111
Interdepartmental revenues		(513)		14,965		44,468		-		(58,920)		-
Total operating revenues		413,416		163,799		44,816		-		(58,920)		563,111
Depreciation and amortization		(36,660)		(9,000)		(7,417)		-		-		(53,077)
Other operating (expenses) income^(a)(b)(c)		(328,093)		(142,175)		8,670		-		58,920		(402,678)
Operating income^(c)		48,663		12,624		46,069		-		-		107,356
Other income, net^(a)(c)		3,985		1,755		-		-		-		5,740
Interest expense, net		(11,257)		(3,234)		(5,533)		-		-		(20,024)
Net income		41,391		11,145		40,536		-		-		93,072
Less: net income attributable to
noncontrolling interest, net of tax		-		-		-		-		(43,237)		(43,237)
Net income attributable to MGE	$	41,391	$	11,145	$	40,536	$	-	$	(43,237)	$	49,835

Year Ended December 31, 2016
Operating revenues	$	409,030	$	134,572	$	1,196	$	-	$	-	$	544,798
Interdepartmental revenues		1,888		21,349		43,930		-		(67,167)		-
Total operating revenues		410,918		155,921		45,126		-		(67,167)		544,798
Depreciation and amortization		(29,122)		(8,128)		(7,372)		-		-		(44,622)
Other operating expenses^(a)(c)		(333,632)		(135,578)		(12,930)		-		67,167		(414,973)
Operating income (loss)^(c)		48,164		12,215		24,824		-		-		85,203
Other income (deductions), net^(a)(c)		3,536		1,631		-		4,360		-		9,527
Interest expense, net		(11,147)		(3,223)		(5,768)		-		-		(20,138)
Net income		40,553		10,623		19,056		4,360		-		74,592
Less: Net income attributable to
noncontrolling interest, net of tax		-		-		-		-		(23,358)		(23,358)
Net income attributable to MGE	$	40,553	$	10,623	$	19,056	$	4,360	$	(23,358)	$	51,234

(a) Reflects retrospective application of new accounting pronouncement related to pension and other postretirement benefits. See
Footnote 2 for further information.
(b) In December 2017, there was a $21.7 million one-time tax impact as a result of the Tax Act. See Footnote 12 for further information.
(c) Amounts are shown net of the related tax expense, consistent with the presentation on the MGE Consolidated Statements of Income.
(d) As of July 31, 2016, MGE no longer consolidates MGE Energy's proportionate share of equity earnings in MGE Transco.
See Footnote 6 for further information.

The following table shows segment information for MGE Energy's and MGE's assets and capital expenditures:

		Utility				Consolidated
(In thousands) MGE Energy		Electric		Gas		Non-regulated Energy		Transmission Investment^(e)		All Others		Consolidation/ Elimination Entries		Total
Assets:
December 31, 2018	$	1,193,083	$	377,005	$	265,301	$	66,366	$	465,661	$	(378,798)	$	1,988,618
December 31, 2017		1,058,988		354,875		270,384		61,783		485,548		(376,396)		1,855,182
December 31, 2016		1,038,308		329,538		271,277		74,535		465,202		(377,800)		1,801,060
Capital Expenditures:
Year ended Dec. 31, 2018	$	176,399	$	30,497	$	5,301	$	-	$	-	$	-	$	212,197
Year ended Dec. 31, 2017		77,353		26,847		3,931		-		-		-		108,131
Year ended Dec. 31, 2016		50,699		29,136		3,824		-		-		-		83,659

		Utility				Consolidated
(In thousands)MGE		Electric		Gas		Non-regulated Energy		Consolidation/ Elimination Entries		Total
Assets:
December 31, 2018	$	1,193,083	$	377,005	$	265,251	$	(448)	$	1,834,891
December 31, 2017		1,058,988		354,875		270,334		(156)		1,684,041
December 31, 2016		1,038,308		329,538		271,227		(221)		1,638,852
Capital Expenditures:
Year ended Dec. 31, 2018	$	176,399	$	30,497	$	5,301	$	-	$	212,197
Year ended Dec. 31, 2017		77,353		26,847		3,931		-		108,131
Year ended Dec. 31, 2016		50,699		29,136		3,824		-		83,659

(e) In December 2017, there was a $20.4 million one-time tax impact as a result of the Tax Act. See Footnote 12 for
further information.