GOODWILL AND INTANGIBLES

9 Months Ended

Sep. 30, 2021

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 September 30, 2021. We had no changes to the carrying amount of goodwill during the nine months ended September 30, 2021.

(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 September 30, 2021.

During the third quarter of 2021, annual impairment tests were completed at all of our reporting units that carried a goodwill balance as of July 1, 2021. No impairments resulted from these tests.

Intangible Assets

At September 30, 2021, we had $5.7 million of indefinite-lived intangible assets primarily related to an 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 nine months ended September 30, 2021.

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.

	September 30, 2021						December 31, 2020
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
PPAs (1)	$	84.3	$	(4.9)	$	79.4	$	76.1	$	—	$	76.1
Proxy revenue swap (2)	7.2		(1.9)		5.3		7.2		(1.3)		5.9
Interconnection agreements (3)	5.1		(0.4)		4.7		5.1		(0.3)		4.8
Total intangible liabilities	$	96.6	$	(7.2)	$	89.4	$	88.4	$	(1.6)	$	86.8

(1)    Represents PPAs related to the acquisition of Blooming Grove, Tatanka Ridge, and Jayhawk expiring between 2030 and 2032. The weighted-average remaining life of the PPAs is approximately 11 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 life of the proxy revenue swap is approximately seven 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 life of the interconnection agreements is approximately 19 years.

Amortization related to these intangibles for the three and nine months ended September 30, 2021 was $1.9 million and $5.6 million, respectively. Amortization for the three and nine months ended September 30, 2020 was not significant. Amortization for the next five years is estimated to be:

	For the Years Ending December 31
(in millions)	2022		2023		2024		2025		2026
Amortization to be recorded in operating revenues	$	8.1	$	8.1	$	8.1	$	8.1	$	8.1
Amortization to be recorded in other operation and maintenance	0.2		0.2		0.2		0.2		0.2