Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

Our operating segments as of December 31, 2011 include a utility energy segment and a non-utility energy segment. We have organized our operating segments based upon the regulatory environment in which our utility subsidiaries operate and on how management makes decisions and measures performance. The segments are managed separately because each business requires different technology and marketing strategies. The accounting policies of the reportable operating segments are the same as those described in Note A.

Our utility energy segment primarily includes our electric and natural gas utility operations. Our electric utility operation engages in the generation, distribution and sale of electric energy in southeastern (including metropolitan Milwaukee), east central and northern Wisconsin and in the Upper Peninsula of Michigan. Our natural gas utility operation is engaged in the purchase, distribution and sale of natural gas to retail customers and the transportation of customer-owned natural gas throughout Wisconsin. Our non-utility energy segment derives its revenues primarily from the ownership of electric power generating facilities for long-term lease to Wisconsin Electric.

Summarized financial information concerning our operating segments for each of the three years ended December 31, 2011 is shown in the following table. The segment information below includes income from discontinued operations as a result of the sale of Edison Sault in May 2010 and the water utility in April 2009.

	Operating Segments							Eliminations
	Energy				Corporate &			& Reconciling			Total
Year Ended	Utility		Non-Utility		Other (a)			Items			Consolidated
	(Millions of Dollars)
December 31, 2011
Operating Revenues (b)	$	4,431.5	$	435.1	$	0.9		$	(381.1	)	$	4,486.4
Depreciation and Amortization	$	257.0	$	72.5	$	0.7		$	—		$	330.2
Operating Income (Loss)	$	544.8	$	348.9	$	(6.4	)	$	—		$	887.3
Equity in Earnings of Unconsolidated Affiliates	$	62.5	$	—	$	(0.9	)	$	—		$	61.6
Interest Expense, Net	$	110.0	$	66.7	$	59.5		$	(0.4	)	$	235.8
Income Tax Expense (Benefit)	$	182.7	$	112.8	$	(31.6	)	$	—		$	263.9
Income from Discontinued Operations, Net of Tax	$	—	$	—	$	13.4		$	—		$	13.4
Net Income (Loss)	$	376.3	$	169.8	$	525.9		$	(545.8	)	$	526.2
Capital Expenditures	$	792.2	$	31.2	$	7.4		$	—		$	830.8
Total Assets (c)	$	13,433.5	$	2,949.0	$	4,694.8		$	(7,215.2	)	$	13,862.1

	Operating Segments							Eliminations
	Energy				Corporate &			& Reconciling			Total
Year Ended	Utility		Non-Utility		Other (a)			Items			Consolidated
	(Millions of Dollars)
December 31, 2010
Operating Revenues (b)	$	4,165.3	$	320.2	$	0.5		$	(283.5	)	$	4,202.5
Depreciation and Amortization	$	251.4	$	53.5	$	0.7		$	—		$	305.6
Operating Income (Loss)	$	564.0	$	252.4	$	(6.0	)	$	—		$	810.4
Equity in Earnings of Unconsolidated Affiliates	$	60.1	$	—	$	(0.2	)	$	—		$	59.9
Interest Expense, Net	$	117.2	$	40.3	$	52.8		$	(3.9	)	$	206.4
Income Tax Expense (Benefit)	$	192.1	$	84.9	$	(27.1	)	$	—		$	249.9
Income from Discontinued Operations, Net of Tax	$	0.7	$	—	$	1.4		$	—		$	2.1
Net Income (Loss)	$	354.2	$	128.4	$	456.4		$	(482.5	)	$	456.5
Capital Expenditures	$	687.0	$	109.3	$	1.9		$	—		$	798.2
Total Assets (c)	$	11,997.4	$	2,914.2	$	5,075.9		$	(6,927.7	)	$	13,059.8

December 31, 2009
Operating Revenues (b)	$	4,092.0	$	163.1	$	0.2		$	(154.4	)	$	4,100.9
Depreciation and Amortization	$	313.1	$	29.2	$	0.7		$	—		$	343.0
Operating Income (Loss)	$	550.9	$	120.1	$	(10.7	)	$	—		$	660.3
Equity in Earnings of Unconsolidated Affiliates	$	59.1	$	—	$	(0.2	)	$	—		$	58.9
Interest Expense, Net	$	117.5	$	14.7	$	54.3		$	(29.8	)	$	156.7
Income Tax Expense (Benefit)	$	186.7	$	43.4	$	(14.6	)	$	—		$	215.5
Income from Discontinued Operations, Net of Tax	$	1.8	$	—	$	4.9		$	—		$	6.7
Net Income (Loss)	$	334.2	$	63.8	$	382.3		$	(397.9	)	$	382.4
Capital Expenditures	$	547.0	$	253.2	$	14.4		$	—		$	814.6
Total Assets (c)	$	10,784.6	$	2,754.1	$	5,385.5		$	(6,226.3	)	$	12,697.9

(a) Corporate & Other includes all other non-utility activities, primarily non-utility real estate investment and development by Wispark as well as interest on corporate debt.

(b) An elimination for intersegment revenues is included in Operating Revenues. This elimination is primarily between We Power and Wisconsin Electric.

(c) An elimination of $2,369.0 million, $1,785.9 million and $889.1 million is included in Total Assets as of December 31, 2011, 2010 and 2009, respectively, for all PTF-related activity between We Power and Wisconsin Electric.