GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

The following table shows changes to our goodwill balances by segment during the years ended December 31, 2014, and 2013:



	Natural Gas Utility						Holding Company and Other				Total
(Millions)	2014			2013			2014		2013		2014			2013
Balance as of January 1
Gross goodwill	$	933.5		$	933.5		$	19.6	$	15.8	$	953.1		$	949.3
Accumulated impairment losses	(297.7		)	(297.7		)	—		—		(297.7		)	(297.7		)
Net goodwill as of January 1	635.8			635.8			19.6		15.8		655.4			651.6
Adjustment to ITF intellectual property *	—			—			—		3.8		—			3.8

Balance as of December 31
Gross goodwill	933.5			933.5			19.6		19.6		953.1			953.1
Accumulated impairment losses	(297.7		)	(297.7		)	—		—		(297.7		)	(297.7		)
Net goodwill as of December 31	$	635.8		$	635.8		$	19.6	$	19.6	$	655.4		$	655.4


*	An immaterial adjustment was made to the gross goodwill balance at ITF in the second quarter of 2013 due to a correction to the life of certain intangible assets.

In the second quarter of 2014, annual impairment tests were completed at all of our reporting units that carried a goodwill balance as of April 1, 2014. No impairments resulted from these tests.

The identifiable intangible assets other than goodwill listed below are part of other long-term assets on the balance sheets.



	December 31, 2014							December 31, 2013
(Millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortized intangible assets
Contractual service agreements ⁽¹⁾	$	15.6	$	(4.3	)	$	11.3	$	15.6	$	(1.8	)	$	13.8
Customer-owned equipment modifications ⁽²⁾	4.0		(1.2		)	2.8		4.0		(0.9		)	3.1
Intellectual property⁽³⁾	3.4		(0.8		)	2.6		3.4		(0.5		)	2.9
Nonregulated easements ⁽⁴⁾	3.9		(1.4		)	2.5		3.7		(1.1		)	2.6
Compressed natural gas fueling contract assets ⁽⁵⁾	5.6		(3.6		)	2.0		5.6		(2.7		)	2.9
Customer-related⁽⁶⁾	1.9		(0.3		)	1.6		1.9		(0.1		)	1.8
Other	0.5		(0.3		)	0.2		0.5		(0.3		)	0.2
Total	$	34.9	$	(11.9	)	$	23.0	$	34.7	$	(7.4	)	$	27.3

Unamortized intangible assets
MGU trade name	$	5.2	$	—		$	5.2	$	5.2	$	—		$	5.2
Trillium trade name ⁽⁷⁾	3.5		—			3.5		3.5		—			3.5
Pinnacle trade name ⁽⁷⁾	1.5		—			1.5		1.5		—			1.5
Total intangible assets	$	45.1	$	(11.9	)	$	33.2	$	44.9	$	(7.4	)	$	37.5

⁽¹⁾

Represents contractual service agreements that provide for major maintenance and protection against unforeseen maintenance costs related to the combustion turbine generators at the Fox Energy Center. In October 2014, WPS received approval from the PSCW to upgrade the combustion turbine generators at the Fox Energy Center earlier than planned. As a result of this approval, WPS shortened the amortization period of one of its service agreements. The remaining weighted-average amortization period for these intangible assets at December 31, 2014, was approximately four years. Since WPS has approval from the PSCW to recover the value of its service agreements from customers over seven years, the increase in amortization due to the shorter amortization period is recorded to a regulatory asset. This regulatory asset will be amortized to reflect the seven-year recovery period.


⁽²⁾	Relates to modifications made by PDI and ITF to customer-owned equipment. These intangible assets are amortized on a straight-line basis, with a remaining weighted-average amortization period at December 31, 2014, of approximately nine years.

⁽³⁾

Represents the fair value of intellectual property at ITF related to a system for more efficiently compressing natural gas to allow for faster fueling. An immaterial adjustment was made to the intangible assets balance in the second quarter of 2013 as a result of a correction to the life of the intangible assets. The remaining amortization period at December 31, 2014, was approximately eight years.


⁽⁴⁾	Relates to easements supporting a pipeline at PDI. The easements are amortized on a straight-line basis, with a remaining amortization period at December 31, 2014, of approximately nine years.


⁽⁵⁾	Represents the fair value of ITF contracts acquired in September 2011. The remaining amortization period at December 31, 2014, was approximately six years.


⁽⁶⁾	Represents customer relationship assets associated with ITF's compressed natural gas fueling operations. The remaining weighted-average amortization period for customer-related intangible assets at December 31, 2014, was approximately 12 years.


⁽⁷⁾	Trillium USA (Trillium) and Pinnacle CNG Systems (Pinnacle) are wholly owned subsidiaries of ITF.

The table below shows the amortization recorded during the years ended December 31:



(Millions)	2014		2013		2012
Amortization recorded in cost of sales	$	1.2	$	1.6	$	1.3
Amortization recorded in depreciation and amortization expense	3.0		2.5		1.0
Amortization recorded in regulatory assets	0.3		—		—

Amortization for the next five years is estimated to be:



	For the Year Ending December 31
(Millions)	2015		2016		2017		2018		2019
Amortization to be recorded in cost of sales	$	1.1	$	0.9	$	0.9	$	0.8	$	0.6
Amortization to be recorded in depreciation and amortization expense	3.0		2.9		2.4		1.9		1.9
Amortization to be recorded in regulatory assets	1.0		1.0		0.5		—		—

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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