Advertising Costs

Costs associated with certain natural gas and electric direct-response advertising campaigns at IES were capitalized and reported as other long-term assets on the balance sheets. The capitalized costs result in probable future benefits and were incurred to solicit sales to customers who could be shown to have responded specifically to the advertising. Capitalized direct-response advertising costs, net of accumulated amortization, totaled $4.9 million and $5.2 million as of September 30, 2014, and December 31, 2013, respectively. On November 1, 2014, IES's retail energy business was sold, and these capitalized direct-response advertising costs were included in the sale. The asset balances for each of the direct-response advertising cost pools are reviewed quarterly for impairment. We did not record any significant impairments during the three and nine months ended September 30, 2014, and 2013.

Direct-response advertising costs are amortized to operating and maintenance expense over the estimated period of benefit, which is approximately two years. The amortization of direct-response advertising costs was $0.1 million for the three months ended September 30, 2014, and 2013. The amortization of direct-response advertising costs was $1.8 million and $4.1 million for the nine months ended September 30, 2014, and 2013, respectively.

We expense all advertising costs as incurred, except for those capitalized as direct-response advertising, as discussed above. The following table shows our other advertising expense.



	Three Months Ended September 30				Nine Months Ended September 30
(Millions)	2014		2013		2014		2013
Other advertising expense
IES's retail energy business	$	1.0	$	1.0	$	3.3	$	4.0
Other	1.3		1.2		2.8		2.6
Total Integrys Energy Group Consolidated	$	2.3	$	2.2	$	6.1	$	6.6