GUARANTEES (Tables)

6 Months Ended

Jun. 30, 2013

The following table shows our outstanding guarantees:



	Total Amounts Committed at June 30, 2013		Expiration
(Millions)	Total Amounts Committed at June 30, 2013		Less Than 1 Year		1 to 3 Years		Over 3 Years
Guarantees supporting commodity transactions of subsidiaries ⁽¹⁾	$	587.0	$	346.3	$	28.2	$	212.5
Standby letters of credit⁽²⁾	31.2		31.0		0.2		—
Surety bonds⁽³⁾	21.2		20.1		1.1		—
Other guarantees⁽⁴⁾	21.2		—		—		21.2
Total guarantees	$	660.6	$	397.4	$	29.5	$	233.7


⁽¹⁾	Consists of parental guarantees of $430.4 million to support the business operations of Integrys Energy Services; $109.0 million and $40.6 million, respectively, related to natural gas supply at MERC and MGU; and $5.0 million at IBS, and $2.0 million at UPPCO to support business operations. These guarantees are not reflected on our balance sheets.

⁽²⁾

At our request or the request of our subsidiaries, financial institutions have issued standby letters of credit for the benefit of third parties that have extended credit to our subsidiaries. This amount consists of $29.2 million issued to support Integrys Energy Services’ operations and $2.0 million issued to support MERC, MGU, NSG, PGL, ITF, UPPCO, and WPS. These amounts are not reflected on our balance sheets.


⁽³⁾	Primarily for workers compensation self-insurance programs and obtaining various licenses, permits, and rights-of-way. These guarantees are not reflected on our balance sheets.

⁽⁴⁾

Consists of (a) $10.0 million related to the sale agreement for Integrys Energy Services’ Texas retail marketing business, which included a number of customary representations, warranties, and indemnification provisions. An insignificant liability was recorded related to the possible imposition of additional miscellaneous gross receipts tax in the event of a change in law or interpretation of the tax law; (b) $5.0 million related to an environmental indemnification provided by Integrys Energy Services as part of the sale of the Stoneman generation facility, under which we expect that the likelihood of required performance is remote. This amount is not reflected on our balance sheets; and (c) $6.2 million related to other indemnifications primarily for workers compensation coverage. These amounts are not reflected on our balance sheets.

- Definition

Tabular disclosure of each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties.

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