INVESTMENT IN AMERICAN TRANSMISSION COMPANY (Tables) - ATC

9 Months Ended

Sep. 30, 2017

Investment in ATC

Schedule of changes to our investment in ATC

The following table shows changes to our investment in ATC:

	Three Months Ended September 30				Nine Months Ended September 30
(in millions)	2017		2016		2017			2016
Balance at beginning of period	$	1,544.0	$	1,425.0	$	1,443.9		$	1,380.9
Add: Earnings from equity method investment	39.2		38.3		122.9			107.7
Add: Capital contributions	12.8		15.0		63.3			27.1
Add: Acquisition of Integrys's investment in ATC	—		—		—			(1.0		)	(1)
Add: Adjustment to equity method goodwill	—		—		—			10.4
Less: Distributions	35.2		25.2		69.2		(2)	71.9
Less: Other	—		—		0.1			0.1
Balance at end of period	$	1,560.8	$	1,453.1	$	1,560.8		$	1,453.1

⁽¹⁾  Amount reflects an adjustment to the allocation of the purchase price for Integrys made in the second quarter of 2016.

⁽²⁾  Distributions of $35.2 million, received in the first quarter of 2017, were approved and recorded in December 2016

Schedule of significant transactions with ATC

The following table summarizes our significant related party transactions with ATC:

	Three Months Ended September 30				Nine Months Ended September 30
(in millions)	2017		2016		2017			2016
Charges to ATC for services and construction	$	4.4	$	4.4	$	12.3		$	12.8
Charges from ATC for network transmission services	87.4		89.3		262.0			271.4
Refund from ATC per FERC ROE order	—		—		(28.3		)	—

Schedule of receivables and payables with ATC

Our balance sheets included the following receivables and payables related to ATC:

(in millions)	September 30, 2017		December 31, 2016
Accounts receivable
Services provided to ATC	$	1.5	$	2.2
Accounts payable
Services received from ATC	29.1		28.7

Schedule of summarized income statement data for ATC

Summarized financial data for ATC is included in the following tables:

	Three Months Ended September 30				Nine Months Ended September 30
(in millions)	2017		2016		2017		2016
Income statement data
Revenues	$	171.1	$	158.1	$	522.4	$	476.6
Operating expenses	85.0		80.2		250.1		241.0
Other expense	27.5		23.5		79.6		71.2
Net income	$	58.6	$	54.4	$	192.7	$	164.4

Schedule of summarized balance sheet data for ATC

(in millions)	September 30, 2017		December 31, 2016
Balance sheet data
Current assets	$	89.0	$	75.8
Noncurrent assets	4,564.9		4,312.9
Total assets	$	4,653.9	$	4,388.7
Current liabilities	$	772.1	$	495.1
Long-term debt	1,740.8		1,865.3
Other noncurrent liabilities	213.8		271.5
Shareholders' equity	1,927.2		1,756.8
Total liabilities and shareholders' equity	$	4,653.9	$	4,388.7