Natural Gas Utility | Integrys Energy Services | Holding Company and Other | Total | |||||||||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Balance as of January 1 | ||||||||||||||||||||||||||||||||
Gross goodwill | $ | 933.5 | $ | 933.5 | $ | 6.6 | $ | 6.6 | $ | 15.8 | $ | 15.9 | $ | 955.9 | $ | 956.0 | ||||||||||||||||
Accumulated impairment losses | (297.6 | ) | (297.6 | ) | — | — | — | — | (297.6 | ) | (297.6 | ) | ||||||||||||||||||||
Net goodwill | 635.9 | 635.9 | 6.6 | 6.6 | 15.8 | 15.9 | 658.3 | 658.4 | ||||||||||||||||||||||||
Adjustment to Trillium and Pinnacle purchase price | — | — | — | — | — | (0.1 | ) | — | (0.1 | ) | ||||||||||||||||||||||
Adjustment to ITF patents/intellectual property * | — | — | — | — | 3.8 | — | 3.8 | — | ||||||||||||||||||||||||
Balance as of December 31 | ||||||||||||||||||||||||||||||||
Gross goodwill | 933.5 | 933.5 | 6.6 | 6.6 | 19.6 | 15.8 | 959.7 | 955.9 | ||||||||||||||||||||||||
Accumulated impairment losses | (297.6 | ) | (297.6 | ) | — | — | — | — | (297.6 | ) | (297.6 | ) | ||||||||||||||||||||
Net goodwill | $ | 635.9 | $ | 635.9 | $ | 6.6 | $ | 6.6 | $ | 19.6 | $ | 15.8 | $ | 662.1 | $ | 658.3 |
* | 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. |
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||
(Millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Amortized intangible assets | ||||||||||||||||||||||||
Customer-related (1) | $ | 26.8 | $ | (15.7 | ) | $ | 11.1 | $ | 22.4 | $ | (14.7 | ) | $ | 7.7 | ||||||||||
Contractual service agreements (2) | 15.6 | (1.8 | ) | 13.8 | — | — | — | |||||||||||||||||
Renewable energy credits (3) | 8.4 | — | 8.4 | 3.1 | — | 3.1 | ||||||||||||||||||
Compressed natural gas fueling contract assets (4) | 5.6 | (2.7 | ) | 2.9 | 5.6 | (1.3 | ) | 4.3 | ||||||||||||||||
Customer-owned equipment modifications (5) | 4.0 | (0.9 | ) | 3.1 | 4.0 | (0.5 | ) | 3.5 | ||||||||||||||||
Natural gas and electric contract assets (6) | 3.9 | (0.5 | ) | 3.4 | — | — | — | |||||||||||||||||
Nonregulated easements (7) | 3.7 | (1.1 | ) | 2.6 | 3.8 | (0.9 | ) | 2.9 | ||||||||||||||||
Patents/intellectual property (8) | 3.4 | (0.5 | ) | 2.9 | 7.2 | (0.3 | ) | 6.9 | ||||||||||||||||
Other | 0.5 | (0.3 | ) | 0.2 | 0.5 | (0.2 | ) | 0.3 | ||||||||||||||||
Total | $ | 71.9 | $ | (23.5 | ) | $ | 48.4 | $ | 46.6 | $ | (17.9 | ) | $ | 28.7 | ||||||||||
Unamortized intangible assets | ||||||||||||||||||||||||
MGU trade name | $ | 5.2 | $ | — | $ | 5.2 | $ | 5.2 | $ | — | $ | 5.2 | ||||||||||||
Trillium trade name (9) | 3.5 | — | 3.5 | 3.5 | — | 3.5 | ||||||||||||||||||
Pinnacle trade name (9) | 1.5 | — | 1.5 | 1.5 | — | 1.5 | ||||||||||||||||||
Total intangible assets | $ | 82.1 | $ | (23.5 | ) | $ | 58.6 | $ | 56.8 | $ | (17.9 | ) | $ | 38.9 |
(1) | Represents customer relationship assets associated with PELLC’s former nonregulated retail natural gas and electric operations, ITF's compressed natural gas fueling operations, and Compass Energy Services. See Note 3, Acquisitions, for more information regarding Integrys Energy Services' acquisition of Compass Energy Services. The remaining weighted-average amortization period for customer-related intangible assets at December 31, 2013, was approximately 11 years. |
(2) | Represents contractual service agreements related to maintenance on the combustion turbine generators at the Fox Energy Center. The remaining amortization period for these intangible assets at December 31, 2013, was approximately six years. |
(3) | Used at Integrys Energy Services to comply with state Renewable Portfolio Standards and to support customer commitments. |
(4) | Represents the fair value of ITF contracts acquired in September 2011. The remaining amortization period at December 31, 2013, was approximately seven years. |
(5) | Relates to modifications made by Integrys Energy Services 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, 2013, of approximately ten years. |
(6) | Represents the fair value of certain natural gas and electric customer contracts acquired by Integrys Energy Services during 2013 that were not considered to be derivative instruments. The remaining amortization period for these intangible assets at December 31, 2013, was approximately four years. |
(7) | Relates to easements supporting a pipeline at Integrys Energy Services. The easements are amortized on a straight-line basis, with a remaining amortization period at December 31, 2013, of approximately ten years. |
(8) | Represents the fair value of patents/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, 2013, was approximately nine years. |
(9) | Trillium USA (Trillium) and Pinnacle CNG Systems (Pinnacle) are wholly owned subsidiaries of ITF. |
For the Year Ending December 31 | ||||||||||||||||||||
(Millions) | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||
Amortization to be recorded in nonregulated cost of sales | $ | 3.4 | $ | 2.0 | $ | 1.1 | $ | 0.9 | $ | 0.8 | ||||||||||
Amortization to be recorded in depreciation and amortization expense | 4.3 | 4.2 | 4.0 | 3.9 | 3.8 |