Goodwill and Intangibles

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL AND INTANGIBLES

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable net assets acquired. The table below shows our goodwill balances by segment at December 31, 2020. We had no changes to the carrying amount of goodwill during the years ended December 31, 2020 and 2019.

(in millions)	Wisconsin		Illinois		Other States		Non-Utility Energy Infrastructure		Total
Goodwill balance (1)	$	2,104.3	$	758.7	$	183.2	$	6.6	$	3,052.8

(1)    We had no accumulated impairment losses related to our goodwill as of December 31, 2020.

In the third quarter of 2020, annual impairment tests were completed at all of our reporting units that carried a goodwill balance as of July 1, 2020. No impairments resulted from these tests.

Intangible Assets

At December 31, 2020, we had $5.7 million of indefinite-lived intangible assets primarily related to a MGU trade name obtained through an acquisition, which is included in other long-term assets on our balance sheets. We had no changes to the carrying amount of these intangible assets during the years ended December 31, 2020 and 2019.

Intangible Liabilities

The intangible liabilities below were all obtained through acquisitions by WECI and are classified as other long-term liabilities on our balance sheets. See Note 2, Acquisitions, for more information.

	December 31, 2020						December 31, 2019
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
PPAs (1)	$	76.1	$	—	$	76.1	$	—	$	—	$	—
Proxy revenue swap (2)	7.2		(1.3)		5.9		7.2		(0.6)		6.6
Interconnection agreements (3)	5.1		(0.3)		4.8		3.0		(0.2)		2.8
Total intangible liabilities	$	88.4	$	(1.6)	$	86.8	$	10.2	$	(0.8)	$	9.4

(1)    Represents PPAs related to the acquisition of Blooming Grove and Tatanka Ridge expiring between 2030 and 2032. The weighted-average remaining useful life of the PPAs is 12 years.

(2)    Represents an agreement with a counterparty to swap the market revenue of Upstream's wind generation for fixed quarterly payments over 10 years, which expires in 2029. The remaining useful life of the proxy revenue swap is eight years.

(3)    Represents interconnection agreements related to the acquisitions of Tatanka Ridge and Bishop Hill III, expiring in 2040 and 2041, respectively. These agreements relate to payments for connecting our facilities to the infrastructure of another utility to facilitate the movement of power onto the electric grid. The weighted-average remaining useful life of the interconnection agreements is 20 years.

Amortization related to these intangibles for the years ended December 31, 2020, 2019, and 2018 was not significant. Amortization for the next five years is estimated to be:

	For the Year Ending December 31
(in millions)	2021		2022		2023		2024		2025
Amortization to be recorded in operating revenues	$	7.2	$	7.2	$	7.2	$	7.2	$	7.2
Amortization to be recorded in other operation and maintenance	0.2		0.2		0.2		0.2		0.2