SEGMENTS OF BUSINESS

12 Months Ended

Dec. 31, 2011

SEGMENTS OF BUSINESS

SEGMENTS OF BUSINESS

NOTE 27—SEGMENTS OF BUSINESS

At December 31, 2011, we reported five segments, which are described below.

·    The natural gas utility segment includes the regulated natural gas utility operations of WPS, MGU, MERC, PGL, and NSG.

·    The electric utility segment includes the regulated electric utility operations of WPS and UPPCO.

·The electric transmission investment segment includes our approximate 34% ownership interest in ATC. ATC is a federally regulated electric transmission company with operations in Wisconsin, Michigan, Minnesota, and Illinois.

·Integrys Energy Services is a diversified nonregulated retail energy supply and services company that primarily sells electricity and natural gas to commercial, industrial, and residential customers in deregulated markets. In addition, Integrys Energy Services invests in energy assets with renewable attributes.

·The holding company and other segment includes the operations of the Integrys Energy Group holding company and the PELLC holding company, along with any nonutility activities at WPS, MGU, MERC, UPPCO, PGL, NSG, and IBS. The operations of ITF were included in this segment beginning on September 1, 2011, when we acquired Trillium USA and Pinnacle CNG Systems.

The tables below present information related to our reportable segments:

	Regulated Operations											Nonutility and Nonregulated Operations
2011 (Millions)	Natural Gas Utility			Electric Utility			Electric Transmission Investment		Total Regulated Operations			Integrys Energy Services			Holding Company and Other			Reconciling Eliminations			Integrys Energy Group Consolidated
Income Statement
External revenues	$	1,987.2		$	1,307.3		$	—	$	3,294.5		$	1,394.8		$	19.4		$	—		$	4,708.7
Intersegment revenues	10.8			—			—		10.8			1.1			1.5			(13.4		)	—
Impairment losses on property, plant, and equipment	—			—			—		—			4.6			—			—			4.6
Restructuring expense	—			0.2			—		0.2			1.8			—			—			2.0
Depreciation and amortization expense	126.1			88.5			—		214.6			12.7			23.3			(0.5		)	250.1
Miscellaneous income	2.2			0.8			79.1		82.1			0.4			19.3			(17.0		)	84.8
Interest expense	48.4			41.8			—		90.2			2.3			53.3			(17.0		)	128.8
Provision (benefit) for income taxes	61.2			59.2			31.3		151.7			(7.1		)	(10.7		)	—			133.9
Net income (loss) from continuing operations	103.9			103.0			47.8		254.7			(6.2		)	(17.6		)	—			230.9
Discontinued operations	—			—			—		—			0.1			(0.5		)	—			(0.4		)
Preferred stock dividends of subsidiary	(0.6		)	(2.5		)	—		(3.1		)	—			—			—			(3.1		)
Net income (loss) attributed to common shareholders	103.3			100.5			47.8		251.6			(6.1		)	(18.1		)	—			227.4
Total assets	5,033.0			2,982.9			439.4		8,455.3			891.5			1,215.3			(578.9		)	9,983.2
Cash expenditures for long-lived assets	199.3			84.1			—		283.4			18.0			10.0			—			311.4

	Regulated Operations											Nonutility and Nonregulated Operations
2010 (Millions)	Natural Gas Utility			Electric Utility			Electric Transmission Investment		Total Regulated Operations			Integrys Energy Services		Holding Company and Other			Reconciling Eliminations			Integrys Energy Group Consolidated
Income Statement
External revenues	$	2,056.4		$	1,312.1		$	—	$	3,368.5		$	1,822.5	$	12.2		$	—		$	5,203.2
Intersegment revenues	0.8			26.8			—		27.6			1.2		—			(28.8		)	—
Impairment losses on property, plant, and equipment	—			—			—		—			43.2		—			—			43.2
Net loss on Integrys Energy Services’ dispositions related to strategy change	—			—			—		—			14.1		—			—			14.1
Restructuring expense	(0.2		)	(0.3		)	—		(0.5		)	8.3		0.1			—			7.9
Depreciation and amortization expense	130.9			94.7			—		225.6			17.2		23.0			—			265.8
Miscellaneous income	1.6			1.5			77.6		80.7			9.1		41.9			(40.2		)	91.5
Interest expense	49.7			43.9			—		93.6			6.7		87.8			(40.2		)	147.9
Provision (benefit) for income taxes	65.3			63.1			31.4		159.8			3.6		(15.2		)	—			148.2
Net income (loss) from continuing operations	84.6			112.3			46.2		243.1			2.8		(22.4		)	—			223.5
Discontinued operations	—			—			—		—			0.2		—			—			0.2
Preferred stock dividends of subsidiary	(0.6		)	(2.5		)	—		(3.1		)	—		—			—			(3.1		)
Noncontrolling interest in subsidiaries	—			—			—		—			0.3		—			—			0.3
Net income (loss) attributed to common shareholders	84.0			109.8			46.2		240.0			3.3		(22.4		)	—			220.9
Total assets	4,828.1			2,929.8			416.3		8,174.2			1,234.8		1,666.7			(1,258.9		)	9,816.8
Cash expenditures for long-lived assets	133.6			87.2			—		220.8			15.2		22.8			—			258.8

	Regulated Operations											Nonutility and Nonregulated Operations
2009 (Millions)	Natural Gas Utility			Electric Utility			Electric Transmission Investment		Total Regulated operations			Integrys Energy Services		Holding Company and Other			Reconciling Eliminations			Integrys Energy Group Consolidated
Income Statement
External revenues	$	2,236.9		$	1,258.9		$	—	$	3,495.8		$	3,992.5	$	11.5		$	—		$	7,499.8
Intersegment revenues	0.6			42.7			—		43.3			1.5		—			(44.8		)	—
Impairment losses on property, plant, and equipment	—			—			—		—			0.7		—			—			0.7
Net loss on Integrys Energy Services’ dispositions related to strategy change	—			—			—		—			28.9		—			—			28.9
Restructuring expense	6.9			8.6			—		15.5			27.2		0.8			—			43.5
Goodwill impairment loss	291.1			—			—		291.1			—		—			—			291.1
Depreciation and amortization expense	106.1			90.3			—		196.4			19.0		15.2			—			230.6
Miscellaneous income	3.1			4.8			75.3		83.2			6.0		46.5			(46.7		)	89.0
Interest expense	52.2			41.6			—		93.8			13.1		104.6			(46.7		)	164.8
Provision (benefit) for income taxes	7.8			51.4			29.8		89.0			19.0		(24.3		)	—			83.7
Net income (loss) from continuing operations	(171.5		)	91.4			45.5		(34.6		)	—		(35.7		)	—			(70.3		)
Discontinued operations	—			—			—		—			2.8		—			—			2.8
Preferred stock dividends of subsidiary	(0.6		)	(2.5		)	—		(3.1		)	—		—			—			(3.1		)
Noncontrolling interest in subsidiaries	—			—			—		—			1.0		—			—			1.0
Net income (loss) attributed to common shareholders	(172.1		)	88.9			45.5		(37.7		)	3.8		(35.7		)	—			(69.6		)
Total assets	4,675.7			2,834.7			395.9		7,906.3			3,547.5		1,462.7			(1,071.9		)	11,844.6
Cash expenditures for long-lived assets	136.9			250.4			—		387.3			22.4		34.5			—			444.2

Geographic Information	2011				2010				2009
(Millions)	Revenues		Long-Lived Assets		Revenues		Long-Lived Assets		Revenues		Long-Lived  Assets
United States	$	4,708.7	$	8,115.5	$	5,199.7	$	7,677.0	$	6,628.5	$	7,537.0
Canada *	—		—		3.5		—		871.3		—
Total	$	4,708.7	$	8,115.5	$	5,203.2	$	7,677.0	$	7,499.8	$	7,537.0

*Revenues and assets of Canadian subsidiaries. Includes the impact in 2009 of the sale of Canadian operations at Integrys Energy Services.