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Schedule I -- Condensed Parent Company Financial Statements
 12 Months Ended
Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
SCHEDULE I - CONDENSED PARENT COMPANY FINANCIAL STATEMENTS
SCHEDULE I – CONDENSED
PARENT COMPANY FINANCIAL STATEMENTS
WEC ENERGY GROUP, INC. (PARENT COMPANY ONLY)
A. INCOME STATEMENTS

Year Ended December 31
 
 
(in millions)
 
2015
 
2014
 
2013
Operating expenses
 
$
42.2

 
$
26.8

 
$
5.5

Equity earnings from subsidiaries
 
695.7

 
635.0

 
607.8

Other income, net
 
23.2

 
2.8

 
3.1

Interest expense
 
71.2

 
53.1

 
54.4

Income before income taxes
 
605.5

 
557.9

 
551.0

Income tax benefit
 
33.0

 
30.4

 
26.4

Net income attributed to common shareholders
 
$
638.5


$
588.3


$
577.4


The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements.
B. STATEMENTS OF COMPREHENSIVE INCOME

Year Ended December 31
 
 
 
 
(in millions)
 
2015
 
2014
 
2013
Net income attributed to common shareholders
 
$
638.5

 
$
588.3

 
$
577.4

 
 
 
 
 
 
 
Other comprehensive income, net of tax
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges
 
 
 
 
 
 
Gains on settlement, net of tax of $7.6
 
11.4

 
—

 
—

Reclassification of gains to net income, net of tax
 
(0.8
)
 
—

 
—

Cash flow hedges, net
 
10.6

 
—

 
—

 
 
 
 
 
 
 
Defined benefit plans
 
 
 
 
 
 
Pension and OPEB costs arising during period, net of tax of $1.0
 
(1.5
)
 
—

 
—

 
 
 
 
 
 
 
Other comprehensive loss from subsidiaries, net of tax
 
(4.8
)
 
—

 
—

 
 
 
 
 
 
 
Other comprehensive income, net of tax
 
4.3

 
—

 
—

 
 
 
 
 
 
 
Comprehensive income attributed to common shareholders
 
$
642.8

 
$
588.3

 
$
577.4


The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements.
C. BALANCE SHEETS

At December 31
 
 
(in millions)
 
2015
 
2014
Assets
 
 
 
 
Current assets
 
 
 
 
Cash and cash equivalents
 
$
1.3

 
$
37.3

Accounts receivable from related parties
 
13.2

 
5.6

Notes receivable from related parties
 
123.2

 
32.2

Prepaid taxes and other
 
2.2

 
103.4

Total current assets
 
139.9

 
178.5

 
 
 
 
 
Investments in subsidiaries
 
10,792.6

 
4,917.8

Other long-term assets
 
254.0

 
280.7

Total long-term assets
 
11,046.6

 
5,198.5

Total assets
 
$
11,186.5

 
$
5,377.0

 
 
 
 
 
Liabilities and equity
 
 
 
 
Current liabilities
 
 
 
 
Short-term debt
 
$
307.9

 
$
—

Accounts payable to related parties
 
1.7

 
2.6

Notes payable to related parties
 
119.0

 
117.2

Accrued taxes
 
75.6

 
—

Other
 
17.5

 
19.8

Total current liabilities
 
521.7

 
139.6

 
 
 
 
 
Long-term debt
 
1,887.2

 
695.5

Other long-term liabilities
 
122.8

 
122.2

Total long-term liabilities
 
2,010.0

 
817.7

Shareholders' equity
 
8,654.8

 
4,419.7

Total liabilities and shareholders' equity
 
$
11,186.5

 
$
5,377.0


The accompanying notes to Condensed Parent Company Financial Statements are an integral part of these financial statements.
D. STATEMENTS OF CASH FLOWS

Year Ended December 31
 
 
(in millions)
 
2015
 
2014
 
2013
Operating activities
 
 
 
 
 
 
Net income attributed to common shareholders
 
$
638.5

 
$
588.3

 
$
577.4

Reconciliation to net cash provided by operating activities
 

 

 

Equity earnings from subsidiaries
 
(695.7
)
 
(635.0
)
 
(607.8
)
Dividends from subsidiaries
 
538.8

 
720.0

 
720.4

Deferred income taxes
 
30.9

 
60.1

 
(7.8
)
Accrued income taxes, net
 
175.7

 
4.1

 
66.8

Change in – other current assets
 
(9.3
)
 
(0.3
)
 
(2.8
)
Change in – other current liabilities
 
(3.2
)
 
5.1

 
(22.9
)
Other, net
 
(18.4
)
 
(8.1
)
 
(21.6
)
Net cash provided by operating activities
 
657.3

 
734.2

 
701.7

 
 
 
 
 
 
 
Investing activities
 
 
 
 
 
 
Business acquisition
 
(1,486.2
)
 
—

 
—

Proceeds from asset sales
 
20.8

 
—

 
—

Capital contributions to subsidiaries
 
(135.3
)
 
(225.5
)
 
(195.3
)
Change in short-term notes receivable from related parties
 
(91.0
)
 
—

 
—

Other, net
 
(0.1
)
 
5.0

 
4.0

Net cash used for investing activities
 
(1,691.8
)
 
(220.5
)
 
(191.3
)
 
 
 
 
 
 
 
Financing activities
 
 
 
 
 
 
Exercise of stock options
 
30.1

 
50.3

 
48.5

Purchase of common stock
 
(74.7
)
 
(123.2
)
 
(223.4
)
Dividends paid on common stock
 
(455.4
)
 
(352.0
)
 
(328.9
)
Issuance of long-term debt
 
1,200.0

 
—

 
—

Change in short-term debt
 
307.9

 
(72.0
)
 
5.0

Change in short-term notes payable to related parties
 
1.8

 
3.5

 
(26.8
)
Other, net
 
(11.2
)
 
16.7

 
14.6

Net cash provided by (used for) financing activities
 
998.5

 
(476.7
)
 
(511.0
)
 
 
 
 
 
 
 
Net change in cash and cash equivalents
 
(36.0
)
 
37.0

 
(0.6
)
Cash and cash equivalents at beginning of year
 
37.3

 
0.3

 
0.9

Cash and cash equivalents at end of year
 
$
1.3

 
$
37.3

 
$
0.3


The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements.
SCHEDULE I –CONDENSED
PARENT COMPANY FINANCIAL STATEMENTS
WEC ENERGY GROUP, INC. (PARENT COMPANY ONLY)

E. NOTES TO PARENT COMPANY FINANCIAL STATEMENTS

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

For Parent Company only presentation, investments in subsidiaries are accounted for using the equity method. The condensed Parent Company financial statements and notes should be read in conjunction with the consolidated financial statements and notes of WEC Energy Group, Inc. appearing in this Annual Report on Form 10-K.

NOTE 2—CASH DIVIDENDS RECEIVED FROM SUBSIDIARIES

Dividends received from our subsidiaries during the years ended December 31, were as follows:
(in millions)
 
2015
 
2014
 
2013
Wisconsin Electric
 
$
240.0

 
$
390.0

 
$
340.0

Wisconsin Gas
 
30.0

 
33.0

 
33.0

We Power
 
262.8

 
297.0

 
347.4

ATC Holding LLC
 
6.0

 
—

 
—

Total
 
$
538.8

 
$
720.0

 
$
720.4


NOTE 3—LONG-TERM DEBT

The following table shows the future maturities of our long-term debt outstanding as of December 31, 2015:
(in millions)
 
 
2018
 
$
300.0

2020
 
400.0

Thereafter
 
1,200.0

Total
 
$
1,900.0


WECC is our subsidiary and has $50.0 million of long-term notes outstanding. In a Support Agreement between us and WECC, we agreed to make sufficient liquid asset contributions to WECC to permit WECC to service its debt obligations as they become due.

The following table shows the financial instruments included on our balance sheets that are not recorded at fair value at December 31:
 
 
2015
 
2014
(in millions)
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
Long-term debt
 
$
1,887.2

 
$
1,900.7

 
$
695.5

 
$
770.0


The carrying value of cash and cash equivalents, net accounts receivable, accounts payable, and short-term borrowings approximates fair value due to the short-term nature of these instruments. The fair value of our long-term debt is estimated based upon the quoted market value for the same or similar issues or upon the quoted market prices of U.S. Treasury issues having a similar term to maturity, adjusted for our bond rating and the present value of future cash flows.

NOTE 4—SUPPLEMENTAL CASH FLOW INFORMATION
(in millions)
 
2015
 
2014
 
2013
Cash paid for interest
 
$
68.8

 
$
44.4

 
$
44.4

Cash received from income tax refunds
 
242.9

 
95.1

 
86.1


NOTE 5—SHORT-TERM NOTES RECEIVABLE – RELATED PARTIES

The following table shows our outstanding short-term notes receivable from related parties as of December 31:
(in millions)
 
2015
 
2014
Integrys
 
$
95.1

 
$
—

Bostco
 
19.6

 
22.4

Wispark
 
8.5

 
9.8

Total
 
$
123.2

 
$
32.2


NOTE 6—SHORT-TERM NOTES PAYABLE – RELATED PARTIES

The following table shows our outstanding short-term notes payable to related parties as of December 31:
(in millions)
 
2015
 
2014
WECC
 
$
108.4

 
$
106.6

Wisvest
 
10.6

 
10.6

Total
 
$
119.0

 
$
117.2