Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA



	44

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareowners and the Board of Directors of Alliant Energy Corporation:

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Alliant Energy Corporation and subsidiaries (the “Company”) as of December 31, 2018 and 2017, the related consolidated statements of income, equity, and cash flows, for each of the three years in the period ended December 31, 2018, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 22, 2019, expressed an unqualified opinion on the Company’s internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 1(n) to the financial statements, the Company has changed the presentation of certain cash receipts and payments related to its sales of accounts receivable program in the consolidated statements of cash flows due to adoption of Financial Accounting Standards Board Accounting Standards Update 2016-15, Classification of Certain Cash Receipts and Cash Payments. The Company has retrospectively applied the impacts of this new accounting principle to all periods presented in the accompanying financial statements.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP

DELOITTE & TOUCHE LLP

Milwaukee, Wisconsin

February 22, 2019

We have served as the Company’s auditor since 2002.



	45

ALLIANT ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF INCOME



	Year Ended December 31,
	2018			2017			2016
	(in millions, except per share amounts)
Revenues:
Electric utility		$3,000.3			$2,894.7			$2,875.5
Gas utility	446.6			400.9			355.4
Other utility	48.0			47.5			48.6
Non-utility	39.6			39.1			40.5
Total revenues	3,534.5			3,382.2			3,320.0
Operating expenses:
Electric production fuel and purchased power	855.0			818.1			854.0
Electric transmission service	495.7			480.9			527.9
Cost of gas sold	232.3			211.4			194.3
Asset valuation charges for Franklin County wind farm	—			—			86.4
Other operation and maintenance	645.8			633.2			589.4
Depreciation and amortization	506.9			461.8			411.6
Taxes other than income taxes	104.4			105.6			102.3
Total operating expenses	2,840.1			2,711.0			2,765.9
Operating income	694.4			671.2			554.1
Other (income) and deductions:
Interest expense	247.0			215.6			196.2
Equity income from unconsolidated investments, net	(54.6		)	(44.8		)	(39.6		)
Allowance for funds used during construction	(75.6		)	(49.7		)	(62.5		)
Other	7.6			17.3			16.6
Total other (income) and deductions	124.4			138.4			110.7
Income from continuing operations before income taxes	570.0			532.8			443.4
Income taxes	47.7			66.7			59.4
Income from continuing operations, net of tax	522.3			466.1			384.0
Income (loss) from discontinued operations, net of tax	—			1.4			(2.3		)
Net income	522.3			467.5			381.7
Preferred dividend requirements of Interstate Power and Light Company	10.2			10.2			10.2
Net income attributable to Alliant Energy common shareowners		$512.1			$457.3			$371.5
Weighted average number of common shares outstanding (basic and diluted)	233.6			229.7			227.1
Earnings per weighted average common share attributable to Alliant Energy common shareowners (basic and diluted):
Income from continuing operations, net of tax		$2.19			$1.99			$1.65
Loss from discontinued operations, net of tax	—			—			(0.01		)
Net income		$2.19			$1.99			$1.64
Amounts attributable to Alliant Energy common shareowners:
Income from continuing operations, net of tax		$512.1			$455.9			$373.8
Income (loss) from discontinued operations, net of tax	—			1.4			(2.3		)
Net income		$512.1			$457.3			$371.5

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	46

ALLIANT ENERGY CORPORATION

CONSOLIDATED BALANCE SHEETS



	December 31,
	2018		2017
	(in millions, except per share and share amounts)
ASSETS
Current assets:
Cash and cash equivalents		$20.9		$27.9
Accounts receivable, less allowance for doubtful accounts	350.4		482.8
Production fuel, at weighted average cost	61.4		72.3
Gas stored underground, at weighted average cost	49.0		44.5
Materials and supplies, at weighted average cost	101.4		105.6
Regulatory assets	79.8		84.3
Prepaid gross receipts tax	42.2		41.3
Other	80.0		46.4
Total current assets	785.1		905.1
Property, plant and equipment, net	12,462.4		11,234.5
Investments:
ATC Holdings	293.6		274.2
Other	137.7		121.9
Total investments	431.3		396.1
Other assets:
Regulatory assets	1,657.5		1,582.4
Deferred charges and other	89.7		69.7
Total other assets	1,747.2		1,652.1
Total assets		$15,426.0		$14,187.8



LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt		$256.5			$855.7
Commercial paper	441.2			320.2
Other short-term borrowings	—			95.0
Accounts payable	543.3			477.3
Regulatory liabilities	142.7			140.0
Other	260.4			260.8
Total current liabilities	1,644.1			2,149.0
Long-term debt, net (excluding current portion)	5,246.3			4,010.6
Other liabilities:
Deferred tax liabilities	1,603.1			1,478.4
Regulatory liabilities	1,350.5			1,357.2
Pension and other benefit obligations	509.1			504.0
Other	287.2			306.4
Total other liabilities	3,749.9			3,646.0
Commitments and contingencies (Note 17)
Equity:
Alliant Energy Corporation common equity:
Common stock - $0.01 par value - 480,000,000 shares authorized; 236,063,279 and 231,348,646 shares outstanding	2.4			2.3
Additional paid-in capital	2,045.5			1,845.5
Retained earnings	2,545.9			2,346.0
Accumulated other comprehensive income (loss)	1.7			(0.5		)
Shares in deferred compensation trust - 384,580 and 463,365 shares at a weighted average cost of $25.60 and $23.91 per share	(9.8		)	(11.1		)
Total Alliant Energy Corporation common equity	4,585.7			4,182.2
Cumulative preferred stock of Interstate Power and Light Company	200.0			200.0
Total equity	4,785.7			4,382.2
Total liabilities and equity		$15,426.0			$14,187.8

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	47

ALLIANT ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS



	Year Ended December 31,
	2018			2017			2016
	(in millions)
Cash flows from operating activities:
Net income		$522.3			$467.5			$381.7
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	506.9			461.8			411.6
Other amortizations	10.6			21.7			(4.8		)
Deferred tax expense and tax credits	67.0			139.6			84.6
Equity income from unconsolidated investments, net	(54.6		)	(44.8		)	(39.6		)
Distributions from equity method investments	43.9			38.1			28.3
Equity component of allowance for funds used during construction	(51.4		)	(33.6		)	(42.3		)
Asset valuation charges for Franklin County wind farm	—			—			86.4
Other	7.8			6.7			0.8
Other changes in assets and liabilities:
Accounts receivable	(475.4		)	(441.2		)	(572.2		)
Regulatory assets	(16.2		)	(130.8		)	(3.6		)
Regulatory liabilities	1.3			(83.8		)	(63.0		)
Deferred income taxes	55.9			81.7			102.4
Other	(90.4		)	38.7			22.5
Net cash flows from operating activities	527.7			521.6			392.8
Cash flows used for investing activities:
Construction and acquisition expenditures:
Utility business	(1,568.3		)	(1,281.8		)	(1,131.2		)
Other	(65.6		)	(185.1		)	(65.6		)
Cash receipts on sold receivables	605.3			461.8			466.8
Other	(38.2		)	(28.3		)	9.8
Net cash flows used for investing activities	(1,066.8		)	(1,033.4		)	(720.2		)
Cash flows from financing activities:
Common stock dividends	(312.2		)	(288.3		)	(266.5		)
Proceeds from issuance of common stock, net	196.6			149.6			26.6
Proceeds from issuance of long-term debt	1,500.0			550.0			800.0
Payments to retire long-term debt	(855.7		)	(4.6		)	(313.4		)
Net change in commercial paper and other short-term borrowings	26.0			171.1			84.3
Other	(24.0		)	(45.2		)	(1.7		)
Net cash flows from financing activities	530.7			532.6			329.3
Net increase (decrease) in cash, cash equivalents and restricted cash	(8.4		)	20.8			1.9
Cash, cash equivalents and restricted cash at beginning of period	33.9			13.1			11.2
Cash, cash equivalents and restricted cash at end of period		$25.5			$33.9			$13.1
Supplemental cash flows information:
Cash paid during the period for:
Interest, net of capitalized interest		($247.5	)		($212.6	)		($192.4	)
Income taxes, net		($5.0	)		($11.3	)		($9.8	)
Significant non-cash investing and financing activities:
Accrued capital expenditures		$299.5			$196.5			$154.4
Beneficial interest obtained in exchange for securitized accounts receivable		$119.4			$222.1			$211.1

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	48

ALLIANT ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY



	Total Alliant Energy Common Equity
								Accumulated			Shares in			Cumulative
			Additional					Other			Deferred			Preferred
	Common		Paid-In		Retained			Comprehensive			Compensation			Stock		Total
	Stock		Capital		Earnings			Income (Loss)			Trust			of IPL		Equity
	(in millions)
2016:
Beginning balance		$2.3		$1,661.8		$2,068.9			($0.4	)		($8.5	)		$200.0		$3,924.1
Net income attributable to Alliant Energy common shareowners					371.5											371.5
Common stock dividends ($1.175 per share)					(266.5		)									(266.5		)
Common stock issued, net			26.6													26.6
Other			4.7		3.1						(1.5		)			6.3
Ending balance	2.3		1,693.1		2,177.0			(0.4		)	(10.0		)	200.0		4,062.0
2017:
Net income attributable to Alliant Energy common shareowners					457.3											457.3
Common stock dividends ($1.26 per share)					(288.3		)									(288.3		)
Common stock issued, net			149.6													149.6
Other			2.8								(1.1		)			1.7
Other comprehensive loss, net of tax								(0.1		)						(0.1		)
Ending balance	2.3		1,845.5		2,346.0			(0.5		)	(11.1		)	200.0		4,382.2
2018:
Net income attributable to Alliant Energy common shareowners					512.1											512.1
Common stock dividends ($1.34 per share)					(312.2		)									(312.2		)
Common stock issued, net	0.1		196.5													196.6
Other			3.5								1.3					4.8
Other comprehensive income, net of tax								2.2								2.2
Ending balance		$2.4		$2,045.5		$2,545.9			$1.7			($9.8	)		$200.0		$4,785.7

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	49

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareowners and the Board of Directors of Interstate Power and Light Company:

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Interstate Power and Light Company and subsidiary (the “Company”) as of December 31, 2018 and 2017, the related consolidated statements of income, equity, and cash flows, for each of the three years in the period ended December 31, 2018, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

Change in Accounting Principle

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP

DELOITTE & TOUCHE LLP

Milwaukee, Wisconsin

February 22, 2019

We have served as the Company’s auditor since 2002.



	50

INTERSTATE POWER AND LIGHT COMPANY

CONSOLIDATED STATEMENTS OF INCOME



	Year Ended December 31,
	2018			2017			2016
	(in millions)
Revenues:
Electric utility		$1,731.1			$1,598.9			$1,569.7
Gas utility	266.2			226.0			204.0
Steam and other	45.0			45.4			46.7
Total revenues	2,042.3			1,870.3			1,820.4
Operating expenses:
Electric production fuel and purchased power	469.0			443.6			430.5
Electric transmission service	352.9			310.4			359.7
Cost of gas sold	129.6			115.6			111.0
Other operation and maintenance	402.6			396.6			376.9
Depreciation and amortization	283.5			245.0			210.8
Taxes other than income taxes	53.9			55.0			53.9
Total operating expenses	1,691.5			1,566.2			1,542.8
Operating income	350.8			304.1			277.6
Other (income) and deductions:
Interest expense	119.4			112.4			103.2
Allowance for funds used during construction	(42.2		)	(31.4		)	(52.0		)
Other	2.6			7.0			6.5
Total other (income) and deductions	79.8			88.0			57.7
Income before income taxes	271.0			216.1			219.9
Income tax benefit	(3.2		)	(10.9		)	(5.9		)
Net income	274.2			227.0			225.8
Preferred dividend requirements	10.2			10.2			10.2
Earnings available for common stock		$264.0			$216.8			$215.6

Earnings per share data is not disclosed given Alliant Energy Corporation is the sole shareowner of all shares of IPL’s common stock outstanding during the periods presented.

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	51

INTERSTATE POWER AND LIGHT COMPANY

CONSOLIDATED BALANCE SHEETS



	December 31,
	2018		2017
	(in millions, except per share and share amounts)
ASSETS
Current assets:
Cash and cash equivalents		$9.7		$3.6
Accounts receivable, less allowance for doubtful accounts	153.5		264.9
Production fuel, at weighted average cost	44.8		52.4
Gas stored underground, at weighted average cost	26.1		20.3
Materials and supplies, at weighted average cost	55.4		60.6
Regulatory assets	39.2		41.9
Other	43.1		32.3
Total current assets	371.8		476.0
Property, plant and equipment, net	6,781.5		5,926.2
Other assets:
Regulatory assets	1,239.8		1,189.7
Deferred charges and other	18.3		14.1
Total other assets	1,258.1		1,203.8
Total assets		$8,411.4		$7,606.0



LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt		$—		$350.0
Commercial paper	50.4		—
Accounts payable	304.9		220.3
Accounts payable to associated companies	28.8		50.1
Regulatory liabilities	90.0		69.7
Accrued taxes	45.8		47.1
Accrued interest	31.2		32.1
Other	56.0		58.4
Total current liabilities	607.1		827.7
Long-term debt, net (excluding current portion)	2,552.3		2,056.0
Other liabilities:
Deferred tax liabilities	957.3		910.7
Regulatory liabilities	664.9		685.7
Pension and other benefit obligations	178.4		173.8
Other	220.7		242.4
Total other liabilities	2,021.3		2,012.6
Commitments and contingencies (Note 17)
Equity:
Interstate Power and Light Company common equity:
Common stock - $2.50 par value - 24,000,000 shares authorized; 13,370,788 shares outstanding	33.4		33.4
Additional paid-in capital	2,222.8		1,797.8
Retained earnings	774.5		678.5
Total Interstate Power and Light Company common equity	3,030.7		2,509.7
Cumulative preferred stock	200.0		200.0
Total equity	3,230.7		2,709.7
Total liabilities and equity		$8,411.4		$7,606.0

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	52

INTERSTATE POWER AND LIGHT COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS



	Year Ended December 31,
	2018			2017			2016
	(in millions)
Cash flows used for operating activities:
Net income		$274.2			$227.0			$225.8
Adjustments to reconcile net income to net cash flows used for operating activities:
Depreciation and amortization	283.5			245.0			210.8
Deferred tax expense and tax credits	2.2			55.8			35.6
Equity component of allowance for funds used during construction	(28.6		)	(21.1		)	(35.2		)
Other	3.6			1.5			2.9
Other changes in assets and liabilities:
Accounts receivable	(494.0		)	(478.7		)	(510.5		)
Regulatory assets	(20.2		)	(126.2		)	(54.7		)
Accounts payable	(24.9		)	24.0			8.0
Regulatory liabilities	0.6			(71.2		)	(67.3		)
Deferred income taxes	43.8			103.7			97.7
Other	(45.2		)	18.4			(18.0		)
Net cash flows used for operating activities	(5.0		)	(21.8		)	(104.9		)
Cash flows used for investing activities:
Construction and acquisition expenditures	(990.7		)	(676.0		)	(689.7		)
Cash receipts on sold receivables	605.3			461.8			466.8
Other	(44.0		)	(27.7		)	(5.7		)
Net cash flows used for investing activities	(429.4		)	(241.9		)	(228.6		)
Cash flows from financing activities:
Common stock dividends	(168.0		)	(156.1		)	(151.9		)
Capital contributions from parent	425.0			200.0			190.0
Proceeds from issuance of long-term debt	500.0			250.0			300.0
Payments to retire long-term debt	(350.0		)	—			—
Net change in commercial paper	50.4			—			—
Other	(17.8		)	(27.2		)	(7.6		)
Net cash flows from financing activities	439.6			266.7			330.5
Net increase (decrease) in cash, cash equivalents and restricted cash	5.2			3.0			(3.0		)
Cash, cash equivalents and restricted cash at beginning of period	7.2			4.2			7.2
Cash, cash equivalents and restricted cash at end of period		$12.4			$7.2			$4.2
Supplemental cash flows information:
Cash (paid) refunded during the period for:
Interest		($120.3	)		($111.8	)		($99.7	)
Income taxes, net		($23.8	)		$8.6			($11.1	)
Significant non-cash investing and financing activities:
Accrued capital expenditures		$186.6			$76.4			$53.8
Beneficial interest obtained in exchange for securitized accounts receivable		$119.4			$222.1			$211.1

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	53

INTERSTATE POWER AND LIGHT COMPANY

CONSOLIDATED STATEMENTS OF EQUITY



	Total IPL Common Equity
			Additional					Cumulative
	Common		Paid-In		Retained			Preferred		Total
	Stock		Capital		Earnings			Stock		Equity
	(in millions)
2016:
Beginning balance		$33.4		$1,407.8		$554.1			$200.0		$2,195.3
Earnings available for common stock					215.6					215.6
Common stock dividends					(151.9		)			(151.9		)
Capital contribution from parent			190.0							190.0
Ending balance	33.4		1,597.8		617.8			200.0		2,449.0
2017:
Earnings available for common stock					216.8					216.8
Common stock dividends					(156.1		)			(156.1		)
Capital contribution from parent			200.0							200.0
Ending balance	33.4		1,797.8		678.5			200.0		2,709.7
2018:
Earnings available for common stock					264.0					264.0
Common stock dividends					(168.0		)			(168.0		)
Capital contribution from parent			425.0							425.0
Ending balance		$33.4		$2,222.8		$774.5			$200.0		$3,230.7

Refer to accompanying Combined Notes to Consolidated Financial Statements.



	54

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareowner and the Board of Directors of Wisconsin Power and Light Company:

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Wisconsin Power and Light Company and subsidiary (the “Company”) as of December 31, 2018 and 2017, the related consolidated statements of income, equity, and cash flows, for each of the three years in the period ended December 31, 2018, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

/s/ DELOITTE & TOUCHE LLP

DELOITTE & TOUCHE LLP

Milwaukee, Wisconsin

February 22, 2019

We have served as the Company’s auditor since 2002.



	55

WISCONSIN POWER AND LIGHT COMPANY

CONSOLIDATED STATEMENTS OF INCOME



	Year Ended December 31,
	2018			2017			2016
	(in millions)
Revenues:
Electric utility		$1,269.2			$1,295.8			$1,305.8
Gas utility	180.4			174.9			151.4
Other	3.0			2.1			1.9
Total revenues	1,452.6			1,472.8			1,459.1
Operating expenses:
Electric production fuel and purchased power	386.0			374.5			423.5
Electric transmission service	142.8			170.5			168.2
Cost of gas sold	102.7			95.8			83.3
Other operation and maintenance	241.6			238.5			209.6
Depreciation and amortization	219.4			212.9			192.5
Taxes other than income taxes	47.2			46.9			44.8
Total operating expenses	1,139.7			1,139.1			1,121.9
Operating income	312.9			333.7			337.2
Other (income) and deductions:
Interest expense	97.8			93.8			91.4
Equity income from unconsolidated investments	(0.9		)	(0.7		)	(39.8		)
Allowance for funds used during construction	(33.4		)	(18.3		)	(10.5		)
Other	5.1			10.4			10.0
Total other (income) and deductions	68.6			85.2			51.1
Income before income taxes	244.3			248.5			286.1
Income taxes	36.2			61.9			93.3
Net income	208.1			186.6			192.8
Net income attributable to noncontrolling interest	—			—			2.4
Earnings available for common stock		$208.1			$186.6			$190.4

Earnings per share data is not disclosed given Alliant Energy Corporation is the sole shareowner of all shares of WPL’s common stock outstanding during the periods presented.

Refer to accompanying Combined Notes to Consolidated Financial Statements.



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WISCONSIN POWER AND LIGHT COMPANY

CONSOLIDATED BALANCE SHEETS



	December 31,
	2018		2017
	(in millions, except per share and share amounts)
ASSETS
Current assets:
Cash and cash equivalents		$8.7		$23.1
Accounts receivable, less allowance for doubtful accounts	190.1		212.2
Production fuel, at weighted average cost	16.6		19.9
Gas stored underground, at weighted average cost	22.9		24.2
Materials and supplies, at weighted average cost	42.9		42.1
Regulatory assets	40.6		42.4
Prepaid gross receipts tax	42.2		41.3
Other	20.6		13.4
Total current assets	384.6		418.6
Property, plant and equipment, net	5,287.3		4,917.9
Other assets:
Regulatory assets	417.7		392.7
Deferred charges and other	62.9		27.3
Total other assets	480.6		420.0
Total assets		$6,152.5		$5,756.5



LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt		$250.0		$—
Commercial paper	105.5		25.0
Accounts payable	180.9		201.7
Accounts payable to associated companies	31.8		22.2
Regulatory liabilities	52.7		70.3
Accrued interest	25.5		25.6
Other	48.2		51.4
Total current liabilities	694.6		396.2
Long-term debt, net (excluding current portion)	1,584.9		1,833.4
Other liabilities:
Deferred tax liabilities	582.0		522.4
Regulatory liabilities	685.6		671.5
Capital lease obligations - Sheboygan Falls Energy Facility	60.0		70.2
Pension and other benefit obligations	217.7		213.7
Other	178.2		167.6
Total other liabilities	1,723.5		1,645.4
Commitments and contingencies (Note 17)
Equity:
Wisconsin Power and Light Company common equity:
Common stock - $5 par value - 18,000,000 shares authorized; 13,236,601 shares outstanding	66.2		66.2
Additional paid-in capital	1,309.0		1,109.0
Retained earnings	774.3		706.3
Total Wisconsin Power and Light Company common equity	2,149.5		1,881.5
Total liabilities and equity		$6,152.5		$5,756.5

Refer to accompanying Combined Notes to Consolidated Financial Statements.



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WISCONSIN POWER AND LIGHT COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS



	Year Ended December 31,
	2018			2017			2016
	(in millions)
Cash flows from operating activities:
Net income		$208.1			$186.6			$192.8
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	219.4			212.9			192.5
Other amortizations	5.8			17.7			(8.7		)
Deferred tax expense and tax credits	49.8			53.9			114.5
Other	(23.3		)	(13.3		)	(17.8		)
Other changes in assets and liabilities:
Accounts receivable	19.7			17.7			(47.6		)
Regulatory assets	4.0			(4.7		)	51.1
Other	(26.5		)	(5.1		)	44.6
Net cash flows from operating activities	457.0			465.7			521.4
Cash flows used for investing activities:
Construction and acquisition expenditures	(577.6		)	(637.4		)	(453.0		)
Other	(29.9		)	(29.9		)	(25.9		)
Net cash flows used for investing activities	(607.5		)	(667.3		)	(478.9		)
Cash flows from (used for) financing activities:
Common stock dividends	(140.1		)	(125.9		)	(135.0		)
Capital contribution from parent	200.0			90.0			60.0
Proceeds from issuance of long-term debt	—			300.0			—
Net change in commercial paper	80.5			(27.3		)	32.4
Other	(4.9		)	(17.9		)	3.9
Net cash flows from (used for) financing activities	135.5			218.9			(38.7		)
Net increase (decrease) in cash, cash equivalents and restricted cash	(15.0		)	17.3			3.8
Cash, cash equivalents and restricted cash at beginning of period	24.2			6.9			3.1
Cash, cash equivalents and restricted cash at end of period		$9.2			$24.2			$6.9
Supplemental cash flows information:
Cash (paid) refunded during the period for:
Interest		($98.1	)		($91.7	)		($91.5	)
Income taxes, net		$14.0			($8.4	)		$27.8
Significant non-cash investing and financing activities:
Accrued capital expenditures		$102.5			$114.5			$93.1
Transfer of interest in ATC and tax liability to ATI		$—			$—			($163.6	)

Refer to accompanying Combined Notes to Consolidated Financial Statements.



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WISCONSIN POWER AND LIGHT COMPANY

CONSOLIDATED STATEMENTS OF EQUITY



	Total WPL Common Equity
			Additional
	Common		Paid-In		Retained			Noncontrolling			Total
	Stock		Capital		Earnings			Interest			Equity
	(in millions)
2016:
Beginning balance		$66.2		$959.0		$731.1			$11.3			$1,767.6
Net income					190.4			2.4			192.8
Common stock dividends					(135.0		)				(135.0		)
Capital contribution from parent			60.0								60.0
Contributions from noncontrolling interest								11.5			11.5
Distributions to noncontrolling interest								(2.5		)	(2.5		)
Transfer of interest in ATC to ATI					(140.9		)	(22.7		)	(163.6		)
Ending balance	66.2		1,019.0		645.6			—			1,730.8
2017:
Net income					186.6						186.6
Common stock dividends					(125.9		)				(125.9		)
Capital contribution from parent			90.0								90.0
Ending balance	66.2		1,109.0		706.3			—			1,881.5
2018:
Net income					208.1						208.1
Common stock dividends					(140.1		)				(140.1		)
Capital contribution from parent			200.0								200.0
Ending balance		$66.2		$1,309.0		$774.3			$—			$2,149.5

Refer to accompanying Combined Notes to Consolidated Financial Statements.



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ALLIANT ENERGY CORPORATION

INTERSTATE POWER AND LIGHT COMPANY

WISCONSIN POWER AND LIGHT COMPANY

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1(a) General -

Description of Business - Alliant Energy’s financial statements include the accounts of Alliant Energy and its consolidated subsidiaries. Alliant Energy is a Midwest U.S. energy holding company, whose primary wholly-owned subsidiaries are IPL, WPL, AEF and Corporate Services.

IPL’s financial statements include the accounts of IPL and its consolidated subsidiary, IPL SPE LLC, which is used for IPL’s sales of accounts receivable program. IPL is a direct subsidiary of Alliant Energy and is a public utility engaged principally in the generation and distribution of electricity and the distribution and transportation of natural gas to retail customers in select markets in Iowa. IPL also sells electricity to wholesale customers in Minnesota, Illinois and Iowa, and is engaged in the generation and distribution of steam for two customers in Cedar Rapids, Iowa.

WPL’s financial statements include the accounts of WPL and its consolidated subsidiary, WPL Transco, which previously held Alliant Energy’s interest in ATC. WPL is a direct subsidiary of Alliant Energy and is a public utility engaged principally in the generation and distribution of electricity and the distribution and transportation of natural gas to retail customers in select markets in Wisconsin. WPL also sells electricity to wholesale customers in Wisconsin.

AEF is comprised of Transportation, ATI, a non-utility wind farm, the Sheboygan Falls Energy Facility and other non-utility holdings. Transportation includes a short-line railway that provides freight service between Cedar Rapids, Iowa and Iowa City, Iowa; barge terminal and hauling services on the Mississippi River; and other transfer and storage services. ATI, a wholly-owned subsidiary of AEF, holds all of Alliant Energy’s interest in ATC Holdings. The non-utility wind farm includes a 50% cash equity ownership interest in a 225 MW wind farm located in Oklahoma. The Sheboygan Falls Energy Facility is a 347 MW, simple-cycle, natural gas-fired EGU near Sheboygan Falls, Wisconsin, which is leased to WPL for an initial period of 20 years ending in 2025.

Corporate Services is the subsidiary formed to provide administrative services to Alliant Energy and its subsidiaries.

Basis of Presentation - The financial statements reflect investments in controlled subsidiaries on a consolidated basis and Alliant Energy’s, IPL’s and WPL’s proportionate shares of jointly-owned utility EGUs. Unconsolidated investments, which Alliant Energy and WPL do not control, but have the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method of accounting. Under the equity method of accounting, Alliant Energy and WPL initially record the investment at cost, and adjust the carrying amount of the investment to recognize their respective share of the earnings or losses of the investee. Dividends received from an investee reduce the carrying amount of the equity investment. Investments that do not meet the criteria for consolidation or the equity method of accounting are accounted for under the cost method.

All intercompany balances and transactions, other than certain transactions affecting the rate-making process at IPL and WPL, have been eliminated from the financial statements. Such transactions not eliminated include costs that are recoverable from customers through rate-making processes. The financial statements are prepared in conformity with GAAP, which give recognition to the rate-making practices of FERC and state commissions having regulatory jurisdiction.

Certain prior period amounts in the Financial Statements and Notes have been reclassified to conform to the current period presentation for comparative purposes, including modifications to the presentation of the components of net periodic benefit costs for defined benefit pension and other postretirement plans in the income statements, and restricted cash and cash receipts on sold receivables in the cash flows statements, as discussed in Note 1(n).

Discontinued operations reported in Alliant Energy’s income statements are related to various warranty claims associated with the sale of RMT, Inc. in 2013, which has resulted in operating expenses and income subsequent to the sale. Alliant Energy presents cash flows from continuing operations together with cash flows from discontinued operations in its cash flows statements.



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Use of Estimates - The preparation of the financial statements requires management to make estimates and assumptions that affect: (a) the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements; and (b) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

NOTE 1(b) Regulatory Assets and Regulatory Liabilities - Alliant Energy, IPL and WPL are subject to regulation by FERC and various state regulatory commissions. As a result, Alliant Energy, IPL and WPL are subject to GAAP provisions for regulated operations, which provide that rate-regulated public utilities record certain costs and credits allowed in the rate-making process in different periods than for non-utility entities. Regulatory assets generally represent incurred costs that have been deferred as such costs are probable of recovery in future customer rates. Regulatory liabilities generally represent obligations to make refunds to customers or amounts collected in rates for which the related costs have not yet been incurred. Amounts recorded as regulatory assets or regulatory liabilities are generally recognized in the income statements at the time they are reflected in rates.

NOTE 1(c) Income Taxes - The liability method of accounting is followed for deferred taxes, which requires the establishment of deferred tax assets and liabilities, as appropriate, for temporary differences between the tax basis of assets and liabilities and the amounts reported in the financial statements. Deferred taxes are recorded using currently enacted tax rates and estimates of state apportionment. Changes in deferred tax assets and liabilities associated with certain property-related differences at IPL are accounted for differently than other subsidiaries of Alliant Energy due to rate-making practices in Iowa. Rate-making practices in Iowa do not include the impact of certain deferred tax expenses (benefits) in the determination of retail rates. Based on these rate-making practices, deferred tax expense (benefit) related to these property-related differences at IPL is not recorded in the income statement but instead recorded to regulatory assets or regulatory liabilities until these temporary differences reverse. In Wisconsin, the PSCW allows rate recovery of deferred tax expense on all temporary differences.

Investment tax credits are deferred and amortized to income over the average lives of the related property. Federal Tax Reform repealed corporate federal AMT and allows unutilized AMT credits to be refunded over four tax years beginning with the U.S. federal tax return for calendar year 2018. Other tax credits reduce income tax expense in the year claimed.

Alliant Energy files a consolidated federal income tax return and a combined return in Wisconsin, which include Alliant Energy and its subsidiaries. Alliant Energy subsidiaries with a presence in Iowa file as part of a consolidated return in Iowa.

Alliant Energy allocates consolidated income tax expense to its subsidiaries that are members of the group that file a consolidated or combined income tax return. IPL and WPL use the modified separate return approach for calculating their income tax provisions and related deferred tax assets and liabilities. IPL and WPL are assumed to file separate tax returns with the federal and state taxing authorities, except that net operating losses (and other current or deferred tax attributes) are characterized as realized (or realizable) by IPL and WPL when those tax attributes are realized (or realizable) by the consolidated tax return group of Alliant Energy (even if IPL and WPL would not otherwise have realized the attributes on a stand-alone basis). The difference in the income taxes recorded for IPL and WPL under the modified separate return method compared to the income taxes recorded on a separate return basis was not material in 2018, 2017 and 2016.

NOTE 1(d) Cash, Cash Equivalents and Restricted Cash - Cash and cash equivalents include short-term liquid investments that have original maturities of less than 90 days. At December 31, 2018 and 2017, restricted cash primarily related to deposits with trustees and requirements in Sheboygan Power, LLC’s debt agreement.

NOTE 1(e) Property, Plant and Equipment -

Utility Plant -

General - Utility plant is recorded at the original cost of acquisition or construction, which includes material, labor, contractor services, AFUDC and allocable overheads, such as supervision, engineering, benefits, certain taxes and transportation. Repairs, replacements and renewals of items of property determined to be less than a unit of property or that do not increase the property’s life or functionality are charged to maintenance expense. Property, plant and equipment that is probable of being retired early is classified as plant anticipated to be retired early. Generally, ordinary retirements of utility plant and salvage value are netted and charged to accumulated depreciation upon removal from utility plant accounts and no gain or loss is recognized consistent with rate-making principles. However, if regulators have approved recovery of the remaining net book value of property, plant and equipment that is retired early, or such approval by regulators is probable, the remaining net book value is reclassified from property, plant and equipment to regulatory assets upon retirement.



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Depreciation - IPL and WPL use a combination of remaining life and straight-line depreciation methods as approved by their respective regulatory commissions. The composite or group method of depreciation is used, in which a single depreciation rate is applied to the gross investment in a particular class of property. This method pools similar assets and then depreciates each group as a whole. Periodic depreciation studies are performed to determine the appropriate group lives, net salvage, estimated cost of removal and group depreciation rates. These depreciation studies are subject to review and approval by IPL’s and WPL’s respective regulatory commissions. Depreciation expense is included within the recoverable cost of service component of rates collected from customers. The average rates of depreciation for electric, gas and other properties, consistent with current rate-making practices, were as follows:



	IPL			WPL
	2018	2017	2016	2018	2017	2016
Electric - generation	3.6%	3.5%	3.5%	3.6%	3.5%	3.1%
Electric - distribution	2.8%	2.4%	2.4%	2.6%	2.6%	2.6%
Electric - other	4.7%	4.5%	4.2%	5.7%	6.9%	4.7%
Gas	3.2%	3.4%	3.3%	2.5%	2.5%	2.5%
Other	5.2%	4.0%	3.9%	5.8%	6.0%	5.9%

AFUDC - AFUDC represents costs to finance construction additions, including a return on equity component and cost of debt component as required by regulatory accounting. AFUDC for IPL’s construction projects is calculated in accordance with FERC guidelines. AFUDC for WPL’s retail and wholesale jurisdiction construction projects is calculated in accordance with PSCW and FERC guidelines, respectively. The AFUDC rates, computed in accordance with the prescribed regulatory formula, were as follows:



	2018	2017	2016
IPL (Marshalltown CWIP)	N/A	7.8%	7.9%
IPL (Wind generation CWIP)	7.5%	7.6%	N/A
IPL (other CWIP)	7.5%	7.6%	7.7%
WPL (retail jurisdiction)	7.7%	7.6%	8.2%
WPL (wholesale jurisdiction)	7.2%	6.0%	6.7%

In accordance with their respective regulatory commission decisions, IPL applies its AFUDC rates to 100% of applicable CWIP balances and WPL generally applies its AFUDC rates to 50% of applicable CWIP balances. WPL may apply its AFUDC rates to 100% of the retail portion of the CWIP balances for construction projects requiring a CA or CPCN that were approved by the PSCW after its most recent rate order, including West Riverside.

Non-utility and Other Property -

General - Non-utility property is recorded at the original cost of acquisition or construction, which includes material, labor and contractor services. Repairs, replacements and renewals of items of property determined to be less than a unit of property or that do not increase the property’s life or functionality are charged to maintenance expense. Upon retirement or sale of non-utility property, the original cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in the income statements.

Costs related to software developed or obtained for internal use are capitalized and amortized on a straight-line basis over the estimated useful life of the related software. If software is retired prior to being fully amortized, the remaining book value is recorded as a loss in the income statements.

NOTE 1(f) Revenue Recognition -

Utility - Revenues from Alliant Energy’s utility business are primarily from electric and gas sales to customers. Utility revenues are recognized over time as services are rendered or commodities are delivered to customers, and include billed and unbilled components. The billed component is based on the reading of customers’ meters, which occurs on a systematic basis throughout each reporting period and represents the fair value of the services provided or commodities delivered. The unbilled component is estimated and recorded at the end of each reporting period based on estimated amounts of energy delivered to customers since the end of each customer’s last billing period. The unbilled revenue is based on estimates of daily system demand volumes, customer usage by class, temperature impacts, line losses and the most recent customer rates.

IPL and WPL accrue revenues from their wholesale customers to the extent that the actual net revenue requirements calculated in accordance with FERC-approved formula rates for the reporting period are higher or lower than the amounts billed to wholesale customers during such period. Regulatory assets or regulatory liabilities are recorded as the offset for



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these accrued revenues under formulaic rate-making programs. As of December 31, 2018, the related amounts accrued for IPL and WPL were not material.

IPL and WPL participate in bid/offer-based wholesale energy and ancillary services markets operated by MISO. The MISO transactions are grouped together, resulting in a net supply to or net purchase from MISO for each hour of each day. The net supply to MISO is recorded as bulk power sales in “Electric utility revenues” and the net purchase from MISO is recorded in “Electric production fuel and purchased power” in the income statements.

Non-utility - Revenues from Alliant Energy’s non-utility businesses are primarily from its Transportation business and are recognized over time as services are rendered to customers.

Taxes Collected from Customers - Sales or various other taxes collected by certain of Alliant Energy’s subsidiaries on behalf of other agencies are recorded on a net basis and are not included in revenues.

Other - Alliant Energy, IPL and WPL do not disclose the value of unsatisfied performance obligations for: (i) contracts with an original expected length of one year or less; and (ii) contracts for which revenue is recognized at the amount to which they have the right to invoice for services performed.

NOTE 1(g) Utility Cost Recovery Mechanisms -

Electric Production Fuel and Purchased Power (Fuel-related Costs) - Fuel-related costs are incurred to generate and purchase electricity to meet the demand of IPL’s and WPL’s electric customers. These fuel-related costs include the cost of fossil fuels (primarily natural gas and coal) used to produce electricity at their EGUs, and electricity purchased from MISO wholesale energy markets and under PPAs. These fuel-related costs are recorded in “Electric production fuel and purchased power” in the income statements.

IPL Retail - The cost recovery mechanisms for IPL’s retail electric customers provide for monthly adjustments to their electric rates for changes in fuel-related costs. Changes in the under-/over-collection of these costs are recognized in “Electric production fuel and purchased power” in Alliant Energy’s and IPL’s income statements. The cumulative effects of the under-/over-collection of these costs are recorded in regulatory assets or regulatory liabilities on Alliant Energy’s and IPL’s balance sheets until they are reflected in future billings to customers.

WPL Retail - The cost recovery mechanism for WPL’s retail electric customers is based on forecasts of certain fuel-related costs expected to be incurred during forward-looking test periods and fuel monitoring ranges determined by the PSCW during each retail electric rate proceeding or in a separate fuel cost plan approval proceeding. If WPL’s actual fuel-related costs fall outside these fuel monitoring ranges, WPL is authorized to defer the incremental under-/over-collection of fuel-related costs that are outside the approved ranges. Deferral of under-collections are reduced to the extent actual return on common equity earned by WPL during the fuel cost plan year exceeds the most recently authorized return on common equity. Deferred amounts for fuel-related costs outside the approved fuel monitoring ranges are recognized in “Electric production fuel and purchased power” in Alliant Energy’s and WPL’s income statements. The cumulative effects of these deferred amounts are recorded in regulatory assets or regulatory liabilities on Alliant Energy’s and WPL’s balance sheets until they are reflected in future billings to customers.

IPL and WPL Wholesale - The cost recovery mechanisms for IPL’s and WPL’s wholesale electric customers provide for subsequent adjustments to their electric rates for changes in fuel-related costs. Changes in the under-/over-collection of these costs are recognized in “Electric production fuel and purchased power” in the income statements. The cumulative effects of the under-/over-collection of these costs are recorded in regulatory assets or regulatory liabilities on the balance sheets until they are reflected in future billings to customers.

Purchased Electric Capacity - PPAs help meet the electricity demand of IPL’s and WPL’s customers. Certain of these PPAs include minimum payments for IPL’s and WPL’s rights to electric generating capacity, which are charged each period to “Electric production fuel and purchased power” in the income statements. Purchased electric capacity expenses are recovered from IPL’s and WPL’s retail electric customers through changes in base rates determined during periodic rate proceedings. Purchased electric capacity expenses are recovered from IPL’s and WPL’s wholesale electric customers through annual changes in base rates determined by a formula rate structure.

Electric Transmission Service - Costs incurred for the transmission of electricity to meet the demands of IPL’s and WPL’s customers are charged to “Electric transmission service” in the income statements.



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IPL Retail - Electric transmission service expense is recovered from IPL’s retail electric customers through a transmission cost rider. This cost recovery mechanism provides for annual adjustments to electric rates charged to retail electric customers for changes in electric transmission service expense. Changes in the under-/over-collection of these costs are recognized in “Electric transmission service” in Alliant Energy’s and IPL’s income statements. The cumulative effects of the under-/over-collection of these costs are recorded in regulatory assets or regulatory liabilities on Alliant Energy’s and IPL’s balance sheets until they are reflected in future billings to customers.

WPL Retail - Electric transmission service expense is recovered from WPL’s retail electric customers through changes in base rates determined during periodic rate proceedings. Pursuant to escrow accounting treatment approved by the PSCW, the difference between actual electric transmission service expense incurred and the amount of electric transmission service costs collected from customers as electric revenues is recognized in “Electric transmission service” in Alliant Energy’s and WPL’s income statements. An offsetting amount is recorded in regulatory assets or regulatory liabilities on Alliant Energy’s and WPL’s balance sheets until reflected in future billings to customers.

IPL and WPL Wholesale - IPL and WPL arrange transmission service for the majority of their respective wholesale electric customers. Electric transmission service expense is allocated to and recovered from these customers based on a load ratio share computation.

Cost of Gas Sold - Costs are incurred for the purchase, transportation and storage of natural gas to serve IPL’s and WPL’s gas customers and the costs associated with the natural gas delivered to customers are charged to “Cost of gas sold” in the income statements. The tariffs for IPL’s and WPL’s retail gas customers provide for subsequent adjustments to their rates each month for changes in the cost of gas sold. Changes in the under-/over-collection of these costs are also recognized in “Cost of gas sold” in the income statements. The cumulative effects of the under-/over-collection of these costs are recorded in regulatory assets or regulatory liabilities on the balance sheets until they are reflected in future billings to customers.

Energy Efficiency Costs - Costs incurred to fund energy efficiency programs and initiatives that help customers reduce their energy usage are charged to “Other operation and maintenance” in the income statements. Energy efficiency costs incurred by IPL are recovered from its retail electric and gas customers through an additional tariff called an energy efficiency cost recovery factor, which is revised annually and includes a reconciliation to eliminate any under-/over-collection of energy efficiency costs from prior periods. Energy efficiency costs incurred by WPL are recovered from retail electric and gas customers through changes in base rates determined during periodic rate proceedings. Reconciliations of any under-/over-collection of energy efficiency costs from prior periods are also addressed in WPL’s periodic rate proceedings. Changes in the under-/over-collection of energy efficiency costs for IPL and WPL are recognized in “Other operation and maintenance” in the income statements. The cumulative effects of the under-/over-collection of these costs for IPL and WPL are recorded in regulatory assets or regulatory liabilities on the balance sheets until they are reflected in future billings to customers.

NOTE 1(h) Financial Instruments - Financial instruments are periodically used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs. The fair value of those financial instruments that are determined to be derivatives are recorded as assets or liabilities on the balance sheets. Certain commodity purchase and sales contracts qualify for and have been designated under the normal purchase and sale exception and are accounted for on the accrual basis of accounting. Alliant Energy, IPL and WPL have elected to not net the fair value amounts of derivatives subject to a master netting arrangement by counterparty. Alliant Energy, IPL and WPL do not offset fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) against fair value amounts recognized for derivative instruments that are executed with the same counterparty under the same master netting arrangement. Refer to Note 2 for discussion of the recognition of regulatory assets and regulatory liabilities related to the unrealized losses and gains on derivative instruments. Refer to Notes 15, 16 and 17(f) for further discussion of derivatives and related credit risk.

NOTE 1(i) Asset Impairments -

Property, Plant and Equipment of Regulated Operations - Property, plant and equipment of regulated operations are reviewed for possible impairment whenever events or changes in circumstances indicate all or a portion of the carrying value of the assets may be disallowed for rate-making purposes. If IPL or WPL are disallowed recovery of any portion of the carrying value of their regulated property, plant and equipment that is under construction, has been recently completed or is probable of abandonment, or conclude it is probable recovery will be disallowed, an impairment charge is recognized equal to the amount of the carrying value that was disallowed or is probable of being disallowed. If IPL or WPL are only allowed a partial return on the carrying value of their regulated property, plant and equipment that is under construction, has been recently completed or is probable of abandonment, or conclude it is probable a full return will not be allowed, an impairment



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charge is recognized equal to the difference between the carrying value and the present value of the future revenues expected from their regulated property, plant and equipment.

Property, Plant and Equipment of Non-utility Operations - Property, plant and equipment of non-utility operations are reviewed for possible impairment whenever events or changes in circumstances indicate the carrying value of the assets may not be recoverable. Impairment is indicated if the carrying value of an asset exceeds its undiscounted future cash flows. If an impairment is indicated, a charge is recognized equal to the amount the carrying value exceeds the asset’s fair value.

Unconsolidated Equity Investments - If events or circumstances indicate the carrying value of investments accounted for under the equity method of accounting exceeds fair value and the decline in value is other than temporary, potential impairment is assessed. If an impairment is indicated, a charge is recognized equal to the amount the carrying value exceeds the investment’s fair value.

NOTE 1(j) Asset Retirement Obligations - The fair value of a legal obligation associated with the retirement of an asset is recorded as a liability when an asset is placed in service, when a legal obligation is subsequently identified and when sufficient information becomes available to determine a reasonable estimate of the fair value of future retirement costs. When an ARO is recorded as a liability, an equivalent amount is added to the asset cost. The fair value of AROs at inception is determined using discounted cash flows analyses. The liability is accreted to its present value and the capitalized cost is depreciated over the useful life of the related asset. Accretion and depreciation expenses related to AROs for IPL’s and WPL’s regulated operations are recorded to regulatory assets on the balance sheets. Upon regulatory approval to recover IPL’s AROs expenditures, its regulatory assets are amortized to depreciation and amortization expenses in Alliant Energy’s and IPL’s income statements over the same time period the ARO expenditures are recovered from IPL’s customers. WPL’s regulatory assets related to AROs are being recovered as a component of depreciation rates pursuant to PSCW and FERC orders. Accretion and depreciation expenses related to AROs for Alliant Energy’s non-utility operations are recorded to depreciation and amortization expenses in Alliant Energy’s income statements. Upon settlement of the ARO liability, an entity settles the obligation for its recorded amount or incurs a gain or loss. Any gains or losses related to AROs for IPL’s and WPL’s regulated operations are recorded to regulatory liabilities or regulatory assets on the balance sheets.

NOTE 1(k) Debt Issuance and Retirement Costs - Debt issuance costs and debt premiums or discounts are presented on the balance sheet as a direct adjustment to the carrying amount of the related debt liability, and are deferred and amortized over the expected life of each debt issue, considering maturity dates and, if applicable, redemption rights held by others. Alliant Energy’s non-utility businesses and Corporate Services record to interest expense in the period of retirement any unamortized debt issuance costs and debt premiums or discounts on debt retired early.

NOTE 1(l) Allowance for Doubtful Accounts - Allowances for doubtful accounts are recorded for estimated losses resulting from the inability of customers to make required payments. Allowances for doubtful accounts are estimated based on historical write-offs, customer arrears and other economic factors within IPL’s and WPL’s service territories.

NOTE 1(m) Variable Interest Entities - An entity is considered a VIE if its equity investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties, the entity is structured with disproportionate voting rights and substantially all of the entity’s activities are conducted on behalf of the investor with disproportionately fewer voting rights, or its equity investors lack any of the following characteristics: (1) power, through voting rights or similar rights, to direct the activities of the entity that most significantly impact the entity’s economic performance; (2) the obligation to absorb expected losses of the entity; or (3) the right to receive expected benefits of the entity. The primary beneficiary of a VIE is required to consolidate the VIE. The financial statements do not reflect any consolidation of VIEs.

NOTE 1(n) New Accounting Standards -

Revenue Recognition - In May 2014, the FASB issued an accounting standard providing principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. Alliant Energy, IPL and WPL adopted this standard on January 1, 2018 using the modified retrospective method of adoption, which was applied to contracts with customers that were completed subsequent to January 1, 2018. Alliant Energy, IPL and WPL utilized a portfolio approach upon adoption, which involved evaluating portfolios of contracts with similar characteristics, where the effects of applying the standard were not expected to be materially different than evaluating on an individual contract basis. Upon adoption, there were no cumulative effect adjustments made to the January 1, 2018 retained earnings balances. In addition, prior period amounts have not been restated to reflect the adoption of this standard and continue to be reported under the accounting standards in effect for those periods.



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Alliant Energy, IPL and WPL did not have a material change in revenue recognition, including the timing and pattern of revenue recognition, as a result of the adoption of this standard.

Leases - In February 2016, the FASB issued an accounting standard requiring lease assets and lease liabilities, including operating leases, to be recognized on the balance sheet for all leases with terms longer than 12 months. The standard also requires disclosure of key information about leasing arrangements. Alliant Energy, IPL and WPL adopted this standard on January 1, 2019 using an optional transition approach and there was no cumulative effect adjustment to their balance sheets as of January 1, 2019. Alliant Energy, IPL and WPL expect to recognize increases in assets and liabilities for certain operating leases of approximately $18 million, $11 million and $7 million, respectively, on January 1, 2019. After adoption, prior period amounts will continue to be reported under the accounting standards in effect for those periods. Alliant Energy, IPL and WPL do not expect a material change to their results of operations or cash flows statements.

Upon transition to the new standard, Alliant Energy, IPL and WPL elected the land easement transition practical expedient, for which existing land easements that were not previously accounted for as leases under the original accounting standards did not need to be evaluated under the new accounting standard. In addition, Alliant Energy, IPL and WPL evaluated land easements that were previously accounted for as leases and determined that the majority of these land easements relate to joint-use land sites, and do not meet the criteria for leases under the new accounting standard. Therefore, these land easement arrangements are no longer reflected as operating leases effective January 1, 2019. Alliant Energy’s, IPL’s and WPL’s operating leases under the new accounting standard are primarily comprised of leases of space on telecommunication towers and leases of property.

Pension and Other Postretirement Benefits Plans - In March 2017, the FASB issued an accounting standard amending the income statement presentation of the components of net periodic benefit costs for defined benefit pension and other postretirement plans. The standard requires entities to (1) disaggregate the current service cost component from the other components of net periodic benefit costs and present it with other employee compensation costs in the income statement; and (2) include the other components in the income statement outside of operating income. Only the service cost component of net periodic benefit costs is eligible for capitalization into property, plant and equipment; however, IPL and WPL, as rate-regulated entities, capitalize the other components of net periodic benefit costs into regulatory assets or regulatory liabilities. Alliant Energy, IPL and WPL adopted this standard on January 1, 2018 and used the retrospective method of adoption for the presentation requirements and the prospective method of adoption for the capitalization requirements. Alliant Energy, IPL and WPL used the actual net periodic benefit costs adjusted for approximately 40% of net periodic benefit costs allocated to capital projects for the retrospective method of adoption for the presentation requirements. The change in presentation resulted in a decrease in “Other operation and maintenance” expenses and an increase in “Other (income) and deductions” in Alliant Energy’s, IPL’s and WPL’s income statements of $17.8 million, $7.2 million and $10.5 million in 2017, and $17.1 million, $6.8 million and $10.2 million in 2016, respectively. Segment operating income (loss) was revised for these presentation requirements.

In August 2018, the FASB issued an accounting standard modifying disclosure requirements for employers that sponsor defined benefit pension or OPEB plans. Alliant Energy, IPL and WPL early adopted this standard in the fourth quarter of 2018, which was applied retrospectively.

Cash Flows Statements - In August 2016, the FASB issued an accounting standard providing specific guidance on several cash flow classification matters. The accounting standard requires classification of the consideration received for the beneficial interest obtained for transferring accounts receivable from IPL’s sales of accounts receivable program as an investing activity, instead of an operating activity. Alliant Energy, IPL and WPL retrospectively adopted this standard on January 1, 2018, and use a method of presentation that allocates cash flows between operating and investing activities based on daily transactional activity. Alliant Energy and IPL reclassified $461.8 million in 2017 and $466.8 million in 2016 of the related cash received from IPL’s sales of accounts receivable program from operating activities to investing activities based on daily transactional activity.

In November 2016, the FASB issued an accounting standard requiring restricted cash to be included within beginning-of-period and end-of-period cash and cash equivalents in the cash flows statements. Alliant Energy, IPL and WPL adopted this standard on January 1, 2018, which was applied retrospectively.

NOTE 2. REGULATORY MATTERS

Regulatory Assets - Alliant Energy, IPL and WPL assess whether IPL’s and WPL’s regulatory assets are probable of future recovery by considering factors such as applicable regulations, recent orders by the applicable regulatory agencies, historical treatment of similar costs by the applicable regulatory agencies and regulatory environment changes. Based on these



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assessments, Alliant Energy, IPL and WPL believe the regulatory assets recognized as of December 31, 2018 are probable of future recovery. However, no assurance can be made that IPL and WPL will recover all of these regulatory assets in future rates. If future recovery of a regulatory asset ceases to be probable, the regulatory asset will be charged to expense. At December 31, regulatory assets were comprised of the following items (in millions):



	Alliant Energy				IPL				WPL
	2018		2017		2018		2017		2018		2017
Tax-related		$820.6		$778.2		$783.1		$750.5		$37.5		$27.7
Pension and OPEB costs	542.3		548.0		274.0		274.4		268.3		273.6
EGUs retired early	111.6		63.8		55.4		31.6		56.2		32.2
AROs	110.8		109.3		76.3		72.5		34.5		36.8
Derivatives	28.0		45.3		15.1		21.8		12.9		23.5
Emission allowances	23.6		25.5		23.6		25.5		—		—
Other	100.4		96.6		51.5		55.3		48.9		41.3
		$1,737.3		$1,666.7		$1,279.0		$1,231.6		$458.3		$435.1

At December 31, 2018, IPL and WPL had $77 million and $6 million, respectively, of regulatory assets that were not earning a return. IPL’s regulatory assets that were not earning a return consisted primarily of certain EGUs retired early, emission allowances, debt redemption costs, and costs for clean air compliance and wind generation expansion projects. WPL’s regulatory assets that were not earning a return consisted primarily of environmental-related costs and amounts related to the wholesale portion of under-collected fuel-related costs. The other regulatory assets reported in the above table either earn a return or the cash has not yet been expended, in which case the assets are offset by liabilities that also do not incur a carrying cost.

Tax-related - IPL and WPL record regulatory assets for certain temporary differences (primarily related to utility property, plant and equipment at IPL) that result in a decrease in current rates charged to customers and an increase in future rates charged to customers based on the timing of income tax expense that is used to determine such rates. These temporary differences for IPL include the impacts of qualifying deductions for repairs expenditures, allocation of mixed service costs, and Iowa accelerated tax depreciation, which all contribute to lower current income tax expense during the first part of an asset’s useful life and higher current tax expense during the latter part of an asset’s useful life. These regulatory assets will be recovered from customers in the future when these temporary differences reverse resulting in additional current income tax expense used to determine customers’ rates. During 2018, Alliant Energy’s and IPL’s tax-related regulatory assets increased primarily due to property-related differences for qualifying repairs expenditures. Partially offsetting this increase was a decrease due to the impacts of Iowa tax reform as discussed in Note 12.

Pension and other postretirement benefits costs - The IUB, PSCW and FERC have authorized IPL and WPL to record the previously unrecognized net actuarial gains and losses, and prior service costs and credits, as regulatory assets in lieu of accumulated other comprehensive loss on the balance sheets, as these amounts are expected to be recovered in future rates. These regulatory assets will be increased or decreased as the net actuarial gains or losses, and prior service costs or credits, are subsequently amortized and recognized as a component of net periodic benefit costs. Regulatory assets are also increased or decreased as a result of the annual defined benefit plan measurement process. Pension and OPEB costs are included within the recoverable cost of service component of rates charged to IPL’s and WPL’s retail and wholesale customers, which are based upon pension and OPEB costs determined in accordance with GAAP and are calculated in accordance with IPL’s and WPL’s respective regulatory jurisdictions.

Electric generating units retired early - IPL and WPL have retired various natural gas-fired and coal-fired EGUs and reclassified the remaining net book value of these EGUs from property, plant and equipment to regulatory assets on their respective balance sheets. Details regarding the recovery of the remaining net book value of these EGUs from IPL’s and WPL’s customers are as follows:



Entity	EGU	Retirement Date	Regulatory Asset Balance as of Dec. 31, 2018		Recovery	Regulatory Approval
IPL	Sutherland Units 1 and 3	June 2017		$27.6	Return of remaining net book value over 10 years	IUB and FERC
IPL	M.L. Kapp Unit 2	June 2018	27.8		Return of and return on remaining net book value over 10 years	Pending with FERC; to be addressed with IUB
WPL	Nelson Dewey Units 1 and 2 and Edgewater Unit 3	December 2015	27.4		Return of and return on remaining net book value over 10 years	PSCW and FERC
WPL	Edgewater Unit 4	September 2018	28.8		Return of and return on remaining net book value over 10 years	PSCW and pending with FERC



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AROs - Alliant Energy, IPL and WPL believe it is probable that certain differences between expenses accrued for legal AROs related to their utility operations and expenses recovered currently in rates will be recoverable in future rates, and are deferring the differences as regulatory assets.

Derivatives - In accordance with IPL’s and WPL’s fuel and natural gas recovery mechanisms, prudently incurred costs from derivative instruments are recoverable from customers in the future after any losses are realized, and gains from derivative instruments are refundable to customers in the future after any gains are realized. Based on these recovery mechanisms, the changes in the fair value of derivative liabilities/assets resulted in comparable changes to regulatory assets/liabilities on the balance sheets.

Emission allowances - IPL entered into forward contracts in 2007 to purchase SO2 emission allowances with vintage years of 2014 through 2017 from various counterparties to meet expected future emission reduction standards. Alliant Energy and IPL have recorded a regulatory asset for amounts paid under the forward contracts and are authorized to recover these amounts from its retail customers over a 10-year period.

Regulatory Liabilities - At December 31, regulatory liabilities were comprised of the following items (in millions):



	Alliant Energy				IPL				WPL
	2018		2017		2018		2017		2018		2017
Tax-related		$890.6		$899.4		$390.1		$399.5		$500.5		$499.9
Cost of removal obligations	401.2		410.0		273.3		274.5		127.9		135.5
Electric transmission cost recovery	104.0		90.4		47.7		26.4		56.3		64.0
WPL earnings sharing mechanism	25.4		8.0		—		—		25.4		8.0
Commodity cost recovery	16.8		21.0		11.9		14.6		4.9		6.4
IPL’s tax benefit riders	6.4		25.0		6.4		25.0		—		—
Other	48.8		43.4		25.5		15.4		23.3		28.0
		$1,493.2		$1,497.2		$754.9		$755.4		$738.3		$741.8

Regulatory liabilities related to cost of removal obligations, to the extent expensed through depreciation rates, reduce rate base. Tax-related regulatory liabilities related to excess deferred taxes also reduce revenue requirement calculations utilized in IPL’s and WPL’s respective rate proceedings. A significant portion of the remaining regulatory liabilities are not used to adjust revenue requirement calculations.

Tax-related - Alliant Energy’s, IPL’s and WPL’s tax-related regulatory liabilities are primarily related to excess deferred tax benefits resulting from the remeasurement of accumulated deferred income taxes caused by Federal Tax Reform. A portion of these benefits related to accelerated depreciation are subject to tax normalization rules. These rules limit the rate at which these tax benefits are allowed to be passed on to customers.

Cost of removal obligations - Alliant Energy, IPL and WPL collect in rates future removal costs for many assets that do not have associated legal AROs. Alliant Energy, IPL and WPL record a regulatory liability for the amounts collected in rates for these future removal costs and reduce the regulatory liability for amounts spent on removal activities.

Electric transmission cost recovery - Refer to Note 1(g) for details of IPL’s and WPL’s electric transmission cost recovery mechanisms. Starting in March 2018, amounts billed by transmission providers decreased due to the impacts from Federal Tax Reform. During 2018, Alliant Energy, IPL and WPL recorded the benefits associated with lower transmission expense as regulatory liabilities. In May 2018, IPL starting providing these benefits back to its retail electric customers utilizing the transmission recovery mechanism. WPL is deferring these benefits until a future rate proceeding. Offsetting WPL’s increase in regulatory liabilities was transmission expense amortizations as authorized in the WPL retail electric rate review (2017/2018 Test Period).

WPL earnings sharing mechanism - Pursuant to PSCW orders, WPL must defer a portion of its earnings if its annual regulatory return on common equity exceeds certain levels during the related test periods. As of December 31, 2018, Alliant Energy and WPL deferred $20 million of WPL’s 2018 earnings related to this provision. The timing of the refund of these regulatory liabilities to customers will be determined in a future WPL regulatory proceeding.

Commodity cost recovery - Refer to Note 1(g) for details of IPL’s and WPL’s commodity cost recovery mechanisms.



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IPL’s tax benefit riders - The IUB has approved electric and gas tax benefit riders proposed by IPL, which utilize regulatory liabilities to credit bills of IPL’s Iowa retail electric and gas customers to help offset the impact of rate increases on such customers. Alliant Energy and IPL recognize an offsetting reduction to income tax expense for the after-tax amounts credited to such customers, resulting in no impact to their net income from the electric and gas tax benefit riders. The tax benefit riders regulatory liabilities are related to tax benefits from tax accounting method changes for repairs expenditures and cost of removal expenditures, and a rate-making accounting change for capitalized interest. In 2018, Alliant Energy’s and IPL’s “IPL’s tax benefit riders” regulatory liabilities decreased by $19 million as follows (in millions):



Electric tax benefit rider credits		$17
Gas tax benefit rider credits	2
		$19

Other - In January 2018, the IUB issued an order requiring IPL and other investor-owned utilities in Iowa to track all calculated differences since January 1, 2018 resulting from Federal Tax Reform, such that any over-collections can be refunded to its customers at a future date. Pursuant to IUB approval, the retail electric portion of IPL’s Federal Tax Reform benefits is currently being refunded to customers, beginning May 2018. In January 2018, the PSCW issued an order directing WPL and other investor-owned utilities in Wisconsin to defer the revenue requirement impacts resulting from Federal Tax Reform since its inception. Pursuant to PSCW approval, the retail electric and gas portions of WPL’s Federal Tax Reform benefits are currently being refunded to customers, beginning June 2018. In 2018, Alliant Energy, IPL, and WPL refunded benefits of $66 million, $25 million and $41 million, respectively, from the 2018 impact of Federal Tax Reform, which were recorded as a reduction in revenues. As of December 31, 2018, Alliant Energy’s, IPL’s and WPL’s remaining deferrals related to Federal Tax Reform were $20 million, $15 million and $5 million, respectively, which are included in “Other” in the regulatory liabilities table above.

Utility Rate Reviews -

IPL’s Retail Electric Rate Review (2016 Test Year) - In April 2017, IPL filed a request with the IUB to increase annual electric base rates for its Iowa retail electric customers. The request was based on a 2016 historical Test Year and an interim retail electric base rate increase of $102 million, or approximately 7%, on an annual basis, was implemented effective April 13, 2017. Tax benefit rider credits and MISO transmission owner return on equity refunds were used to reduce the effect of the interim rate increase on customer bills in 2017. In September 2017, IPL reached a partial, non-unanimous settlement agreement with intervener groups for an annual retail electric base rate increase of $130 million, or approximately 9%. In February 2018, the IUB issued an order approving the settlement. Final rates were effective May 1, 2018. The final rate increase includes continuation of the electric transmission cost rider; increased depreciation expense resulting from an updated depreciation study; recovery over a four-year period of ARO expenditures since the last retail electric rate filing in 2010; recovery over a 10-year period of the remaining net book value of Sutherland Units 1 and 3, unamortized forward contract costs for SO2 emission allowances and cancelled project costs approved in a prior EPB; and no double leverage applied to the weighted-average cost of capital. As a result of the partial settlement, in 2017, IPL recorded a write-down of regulatory assets of $9 million, including $4 million to “Other operation and maintenance” expenses primarily related to IPL being no longer probable of earning a return on the remaining net book value of Sutherland Units 1 and 3 from its retail customers with implementation of final rates, and $5 million to “Depreciation and amortization” expenses for certain AROs deemed no longer probable of recovery in future rates.

WPL’s Retail Electric and Gas Rate Review (2019/2020 Test Period) - In December 2018, the PSCW issued an order approving WPL’s proposed settlement for its retail electric and gas rate review covering the 2019/2020 Test Period, which was based on a stipulated agreement between WPL and intervener groups. Under the settlement, WPL retail electric and gas base rates will not change from current levels through the end of 2020.

WPL’s Retail Electric and Gas Rate Review (2017/2018 Test Period) - In December 2016, WPL received an order from the PSCW authorizing WPL to implement increases in annual retail electric and gas rates of $9 million and $9 million, respectively, effective January 1, 2017 followed by a freeze of such rates through the end of 2018. The $9 million net annual retail electric rate increase reflects a $60 million increase in base rates, partially offset by a $51 million reduction in fuel-related costs, using an estimate for 2017 fuel-related costs. The order included utilization of amounts that WPL previously over-recovered from its customers for energy efficiency cost recovery and electric transmission cost recovery to reduce the requested base rate increase. The order also included provisions that required WPL to defer a portion of its earnings if its annual regulatory return on common equity exceeded certain levels in 2017 or 2018.



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NOTE 3. PROPERTY, PLANT AND EQUIPMENT

At December 31, details of property, plant and equipment on the balance sheets were as follows (in millions):



	Alliant Energy						IPL						WPL
	2018			2017			2018			2017			2018			2017
Utility:
Electric plant:
Generation in service		$6,800.6			$6,655.3			$3,610.4			$3,715.9			$3,190.2			$2,939.4
Distribution in service	5,452.2			5,123.5			3,023.7			2,820.9			2,428.5			2,302.6
Other in service	410.8			425.1			260.4			282.3			150.4			142.8
Anticipated to be retired early (a)	—			93.0			—			—			—			93.0
Total electric plant	12,663.6			12,296.9			6,894.5			6,819.1			5,769.1			5,477.8
Gas plant in service	1,387.6			1,244.0			763.1			654.8			624.5			589.2
Other plant in service	513.2			571.9			322.4			333.4			190.8			238.5
Accumulated depreciation	(4,314.6		)	(4,283.1		)	(2,294.7		)	(2,311.0		)	(2,019.9		)	(1,972.1		)
Net plant	10,249.8			9,829.7			5,685.3			5,496.3			4,564.5			4,333.4
Leased Sheboygan Falls Energy Facility, net (b)	—			—			—			—			38.1			46.2
Construction work in progress	1,774.8			962.2			1,091.2			424.4			683.6			537.8
Other, net	6.1			6.0			5.0			5.5			1.1			0.5
Total utility	12,030.7			10,797.9			6,781.5			5,926.2			5,287.3			4,917.9
Non-utility and other:
Non-utility Generation, net (c)	86.9			90.9			—			—			—			—
Corporate Services and other, net (d)	344.8			345.7			—			—			—			—
Total non-utility and other	431.7			436.6			—			—			—			—
Total property, plant and equipment		$12,462.4			$11,234.5			$6,781.5			$5,926.2			$5,287.3			$4,917.9


(a)	In 2018, WPL retired Edgewater Unit 4 and reclassified the remaining net book value of this EGU from property, plant and equipment to a regulatory asset on Alliant Energy’s and WPL’s balance sheets.


(b)	Less accumulated amortization of $82.8 million and $77.6 million for WPL as of December 31, 2018 and 2017, respectively. The Sheboygan Falls Energy Facility is eliminated from WPL upon consolidation and is included in the “Non-utility Generation, net” line within Alliant Energy’s consolidated property, plant and equipment.


(c)	Less accumulated depreciation of $54.5 million and $50.5 million for Alliant Energy as of December 31, 2018 and 2017, respectively.


(d)	Less accumulated depreciation of $167.5 million and $285.6 million for Alliant Energy as of December 31, 2018 and 2017, respectively.

Generation in Service -

WPL’s Acquisition of Forward Wind Energy Center - In 2018, WPL, along with WPSC and MGE, received approval from the PSCW and FERC to acquire a partial ownership interest in the assets of FWEC, which is a 129 MW wind farm located in Wisconsin. In April 2018, WPL acquired 55 MW of the FWEC wind farm for approximately $74 million. WPL, WPSC and MGE had been receiving electricity from the FWEC wind farm under PPAs since FWEC began commercial operations in 2008. Upon completion of the acquisitions, such PPAs terminated. As of the closing date, the estimated fair value of the assets purchased and the liabilities assumed by WPL were as follows (in millions):



Property, plant and equipment, net		$81
Liabilities	7
Net assets acquired		$74

Franklin County Wind Farm - In 2016, based on an evaluation of the strategic options for the Franklin County wind farm, Alliant Energy concluded it was probable the Franklin County wind farm would be transferred to IPL. As a result, Alliant Energy performed an impairment analysis of such assets and recorded non-cash, pre-tax asset valuation charges of $86 million (after-tax charges of $51 million, or $0.23 per share) in 2016. Alliant Energy recorded such charges as a reduction to property, plant and equipment on its balance sheet and charges to “Asset valuation charges for Franklin County wind farm” in its income statement in 2016.

In April 2017, the Franklin County wind farm was transferred from AEF to IPL as approved by a February 2017 FERC order. IPL’s purchase price, including certain transaction-related costs, was $32 million. As of the closing date, the estimated fair values of the assets purchased and liabilities assumed by IPL were as follows (in millions):



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Electric plant in service		$40
Current assets	2
Total assets acquired	42
Other liabilities	10
Net assets acquired		$32

AFUDC - AFUDC represents costs to finance construction additions, including a return on equity component and cost of debt component as required by regulatory accounting. The concurrent credit for the amount of AFUDC capitalized is recorded as “Allowance for funds used during construction” in the income statements. The amount of AFUDC generated by equity and debt components was as follows (in millions):



	Alliant Energy						IPL						WPL
	2018		2017		2016		2018		2017		2016		2018		2017		2016
Equity		$51.4		$33.6		$42.3		$28.6		$21.1		$35.2		$22.8		$12.5		$7.1
Debt	24.2		16.1		20.2		13.6		10.3		16.8		10.6		5.8		3.4
		$75.6		$49.7		$62.5		$42.2		$31.4		$52.0		$33.4		$18.3		$10.5

Non-utility and Other - The non-utility and other property, plant and equipment recorded on Alliant Energy’s balance sheets includes the following:

Non-utility Generation - The Sheboygan Falls Energy Facility was placed into service in 2005 and is depreciated using the straight-line method over a 35-year period. As of December 31, 2018, Alliant Energy recorded $87 million on its balance sheet related to the Sheboygan Falls Energy Facility.

Corporate Services and Other - Property, plant and equipment related to Corporate Services includes a customer billing and information system for IPL and WPL and other computer software, and the corporate headquarters building located in Madison, Wisconsin. The customer billing and information system is amortized using the straight-line method over a 12-year period. The majority of the remaining software is amortized over a 5-year period. Property, plant and equipment related to Transportation includes a short-line railway in Iowa and a barge terminal on the Mississippi River. The Corporate Services and Other property, plant and equipment is depreciated using the straight-line method over periods ranging from 5 to 30 years.

NOTE 4. JOINTLY-OWNED ELECTRIC UTILITY PLANT

Under joint ownership agreements with other utilities, IPL and WPL have undivided ownership interests in jointly-owned EGUs. Each of the respective owners is responsible for the financing of its portion of the construction costs. KWh generation and operating expenses are primarily divided between the joint owners on the same basis as ownership. IPL’s and WPL’s shares of expenses from jointly-owned EGUs are included in the corresponding operating expenses (e.g., electric production fuel, other operation and maintenance, etc.) in their income statements. Information relative to IPL’s and WPL’s ownership interest in these jointly-owned EGUs at December 31, 2018 was as follows (dollars in millions):



	Ownership		Electric		Accumulated Provision		Construction
	Interest %		Plant		for Depreciation		Work in Progress
IPL
Ottumwa Unit 1	48.0	%		$507.1		$161.7		$65.3
George Neal Unit 4	25.7	%	187.3		89.8		1.2
George Neal Unit 3	28.0	%	156.7		57.8		1.4
Louisa Unit 1	4.0	%	39.2		23.9		0.8
			890.3		333.2		68.7
WPL
Columbia Units 1-2	52.5	%	779.4		247.9		9.8
FWEC	42.6	%	119.7		41.2		0.1
West Riverside (a)	91.8	%	—		—		538.4
			899.1		289.1		548.3
Alliant Energy				$1,789.4		$622.3		$617.0


(a)	In January 2018, certain electric cooperatives, which currently have wholesale power supply agreements with WPL, acquired a partial ownership interest in West Riverside.



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NOTE 5. RECEIVABLES

NOTE 5(a) Accounts Receivable - Details for accounts receivable included on the balance sheets as of December 31 were as follows (in millions):



	Alliant Energy						IPL						WPL
	2018			2017			2018			2017			2018			2017
Customer		$91.0			$103.3			$—			$—			$84.8			$97.7
Unbilled utility revenues	74.2			85.1			—			—			74.2			85.1
Deferred proceeds	119.4			222.1			119.4			222.1			—			—
Other	76.3			84.3			37.2			44.1			38.5			40.1
Allowance for doubtful accounts	(10.5		)	(12.0		)	(3.1		)	(1.3		)	(7.4		)	(10.7		)
		$350.4			$482.8			$153.5			$264.9			$190.1			$212.2

NOTE 5(b) Sales of Accounts Receivable - IPL maintains a Receivables Agreement whereby it may sell its customer accounts receivables, unbilled revenues and certain other accounts receivables to a third party through wholly-owned and consolidated special purpose entities. In March 2018, IPL amended and extended through March 2021 the purchase commitment from the third party to which it sells its receivables. IPL pays a monthly fee to the third party that varies based on interest rates, limits on cash proceeds and cash amounts received from the third party. Deferred proceeds represent IPL’s interest in the receivables sold to the third party. At IPL’s request, deferred proceeds are paid to IPL from collections of receivables, after paying any required expenses incurred by the third party and the collection agent. Corporate Services acts as collection agent for the third party and receives a fee for collection services. The Receivables Agreement can be terminated by the third party if arrears or write-offs exceed certain levels. The transfers of receivables meet the criteria for sale accounting established by the transfer of financial assets accounting rules. IPL believes that the allowance for doubtful accounts related to its sales of receivables is a reasonable approximation of credit risk of the customers that generated the receivables. Refer to Note 16 for discussion of the fair value of deferred proceeds.

Under the Receivables Agreement, IPL has the right to receive cash proceeds, up to a certain limit, from the third party in exchange for the receivables sold. Effective April 2018, the limit on cash proceeds fluctuates between $90 million and $110 million. Cash proceeds are used by IPL to meet short-term financing needs, and cannot exceed the current limit or amount of receivables available for sale, whichever is less. As of December 31, 2018, IPL had no available capacity under its sales of accounts receivable program. IPL’s maximum and average outstanding aggregate cash proceeds (based on daily outstanding balances) related to the sales of accounts receivable program were as follows (in millions):



	Maximum			Average
	2018	2017	2016	2018	2017	2016
Outstanding aggregate cash proceeds	$116.0	$112.0	$172.0	$53.4	$62.2	$73.2

As of December 31, the attributes of IPL’s receivables sold under the Receivables Agreement were as follows (in millions):



	2018	2017
Customer accounts receivable	$140.1	$133.8
Unbilled utility revenues	97.1	112.7
Other receivables	0.1	0.3
Receivables sold to third party	237.3	246.8
Less: cash proceeds	108.0	12.0
Deferred proceeds	129.3	234.8
Less: allowance for doubtful accounts	9.9	12.7
Fair value of deferred proceeds	$119.4	$222.1
Outstanding receivables past due	$35.5	$44.7

Additional attributes of IPL’s receivables sold under the Receivables Agreement were as follows (in millions):



	2018	2017	2016
Collections	$2,076.7	$1,647.1	$1,818.1
Write-offs, net of recoveries	21.3	17.7	4.8

In connection with the implementation of IPL’s new customer billing and information system in 2016, IPL postponed the write-off of customer bills for a portion of 2016, resulting in lower write-offs in 2016 compared to 2017 and 2018.



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NOTE 6. INVESTMENTS

Unconsolidated Equity Investments - Unconsolidated investments accounted for under the equity method of accounting are as follows (in millions):



	Ownership Interest at	Carrying Value at December 31,				Equity (Income) / Loss
	December 31, 2018	2018		2017		2018			2017			2016
Alliant Energy
ATC Holdings (a)	16%-20%		$293.6		$274.2		($38.1	)		($42.4	)		($39.1	)
Non-utility wind farm in Oklahoma	50%	105.1		98.3		(15.6		)	(1.8		)	—
Other	Various	22.6		8.9		(0.9		)	(0.6		)	(0.5		)
			$421.3		$381.4		($54.6	)		($44.8	)		($39.6	)
WPL
ATC	—%		$—		$—		$—			$—			($39.1	)
Wisconsin River Power Company	50%	8.1		8.3		(0.9		)	(0.7		)	(0.7		)
			$8.1		$8.3		($0.9	)		($0.7	)		($39.8	)


(a)	As of December 31, 2018, Alliant Energy’s interest in ATC Holdings is comprised of a 16% ownership interest in ATC and a 20% ownership interest in ATC Holdco LLC, which are described below. Alliant Energy currently has the ability to exercise significant influence over ATC’s and ATC Holdco LLC’s financial and operating policies through its participation on ATC’s Board of Directors.

Summary aggregate financial information from the financial statements of these holdings is as follows (in millions):



	Alliant Energy						WPL
	2018		2017		2016		2018		2017		2016
Revenues		$724		$741		$658		$8		$8		$658
Operating income	325		374		331		2		4		331
Net income	217		267		232		1		2		234
As of December 31:
Current assets	144		104				4		7
Non-current assets	5,498		5,041				19		20
Current liabilities	644		770				1		2
Non-current liabilities	2,315		2,038				6		8
Noncontrolling interest	223		255				—		—

Interest in ATC and WPL’s Noncontrolling Interest - Prior to 2014, WPL owned 100% of WPL Transco, which held Alliant Energy’s interest in ATC. In 2014, WPL Transco’s operating agreement was amended to allow ATI, a wholly-owned subsidiary of AEF, to become a member of WPL Transco in addition to WPL. Prior to the transfer of the interest in ATC to ATI discussed below, WPL consolidated WPL Transco, and ATI’s ownership in WPL Transco was recorded as a noncontrolling interest in total equity on WPL’s balance sheets. On December 31, 2016, pursuant to a PSCW order, WPL Transco was liquidated and WPL transferred its interest in ATC to ATI. As a result, WPL no longer records equity income from its prior interest in ATC. In conjunction with the transfer of the interest in ATC, a deferred intercompany tax gain recognized by WPL was assumed by ATI. The impact of WPL’s transfer of the interest in ATC Holdings, including the assumption of such intercompany tax gain by ATI, was recorded as a net reduction in total equity of $163.6 million on WPL’s balance sheet. WPL’s income statement includes all of the equity earnings from ATC through December 31, 2016, the date of transfer. There were no impacts of this transfer to Alliant Energy’s consolidated financial statements. As of December 31, 2016, ATI owns Alliant Energy’s entire interest in ATC Holdings.

Interest in ATC Holdco LLC - In 2011, Duke Energy Corporation and ATC announced the creation of Duke-American Transmission Company, LLC, a joint venture that is expected to acquire, build, own and operate new electric transmission infrastructure in North America. In 2017, ATC transferred a portion of its interest in Duke-American Transmission Company, LLC to ATC Holdco LLC, and as a result, Alliant Energy contributed additional equity capital funding based on its ownership interest in ATC Holdco LLC. A portion of the proceeds from the transfer was distributed to all ATC Holdco LLC’s owners based on their ATC ownership percentage.

Non-utility Wind Farm in Oklahoma - In July 2017, a wholly-owned subsidiary of AEF acquired 50% of a cash equity ownership interest in a 225 MW non-utility wind farm located in Oklahoma, which started commercial operations in December 2016. The wind farm provides electricity to a third-party under a long-term PPA, and has both cash and tax equity ownership. The equity income recognized in 2018 was primarily related to the impacts of Federal Tax Reform. The



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liquidation method utilized to recognize Alliant Energy’s share of the wind farm’s earnings includes utilizing the federal income tax rate in effect as of the end of the measurement period. The lower federal income tax rate effective as of January 1, 2018 resulted in an acceleration of earnings attributable to Alliant Energy’s interest in the Oklahoma wind farm. This increase in earnings is expected to reverse over time. Alliant Energy does not maintain or operate the wind farm, and provided a parent guarantee of its subsidiary’s indemnification obligations under the operating agreement and PPA. Refer to Note 17(d) for discussion of the guarantee.

NOTE 7. COMMON EQUITY

Common Share Activity - A summary of Alliant Energy’s common stock activity was as follows:



	2018		2017		2016
Shares outstanding, January 1	231,348,646		227,673,654		226,918,432
At-the-market offering programs	4,171,013		3,074,931		—
Shareowner Direct Plan issuances	576,965		640,723		732,814
Equity-based compensation plans (Note 13(b))	5,078		5,185		22,408
Other	(38,423	)	(45,847	)	—
Shares outstanding, December 31	236,063,279		231,348,646		227,673,654

At December 31, 2018, Alliant Energy had a total of 11.2 million shares available for issuance in the aggregate, pursuant to its Amended and Restated OIP, Shareowner Direct Plan and 401(k) Savings Plan.

At-the-Market Offering Programs - In 2018 and 2017, Alliant Energy filed prospectus supplements under which it could sell up to $175 million and $125 million of its common stock, respectively, through at-the-market offering programs. In 2018, Alliant Energy issued 4,171,013 shares of common stock through this program and received cash proceeds of $173 million, net of $2 million in commissions and fees. In 2017, Alliant Energy issued 3,074,931 shares of common stock through this program and received cash proceeds of $124 million, net of $1 million in commissions and fees. The 2017 at-the-market offering program expired in 2018, and Alliant Energy currently has no plans to issue any additional common stock through the 2018 at-the-market offering program.

Shareowner Direct Plan - Alliant Energy satisfies its requirements under the Shareowner Direct Plan (dividend reinvestment and stock purchase plan) by acquiring Alliant Energy common stock through original issue, rather than on the open market.

Equity Forward Agreements - In December 2018, Alliant Energy entered into forward sale agreements with various counterparties in connection with a public offering of 8,358,973 shares of Alliant Energy common stock. In the forward sale transaction, the counterparties, or their affiliates, borrowed an aggregate of 8,358,973 shares of Alliant Energy common stock from third parties and sold such shares to the related underwriters. Alliant Energy has concluded that the forward sale agreements meet the derivative scope exception for certain contracts involving an entity’s own equity. Alliant Energy has not yet received any proceeds from the offering and no amounts have been or will be recorded in equity on Alliant Energy’s balance sheets until the forward sale agreements settle. Alliant Energy expects to settle the forward sale agreements prior to December 31, 2019 through physical delivery of shares of common stock in exchange for cash proceeds at the then-applicable forward sale price; however, Alliant Energy may elect cash settlement or net share settlement for all or a portion of the obligations under the forward sale agreements. The initial forward sale price of $44.33 per share, is subject to daily adjustment based on a floating interest rate factor, and will decrease by other fixed amounts specified in the forward sale agreement. Until settlement of the forward sale agreements, Alliant Energy’s EPS dilution resulting from the agreements, if any, is determined using the treasury stock method. Share dilution occurs when the average market price of Alliant Energy stock during the reporting period is higher than the forward sale price as of the end of the reporting period. As of December 31, 2018, the securities under the forward sale agreements were excluded from the calculation of diluted EPS as they were antidilutive.

Shareowner Rights Agreement - Alliant Energy previously established an amended and restated Shareowner Rights Agreement. The rights under this agreement were exercisable if a person or group acquired, or announced an intention to acquire, 15% or more of Alliant Energy’s outstanding common stock. In January 2018, Alliant Energy’s Board of Directors authorized the redemption of the rights, which were redeemed to shareowners as of the close of business on January 31, 2018.

Comprehensive Income (Loss) - In 2018, 2017 and 2016, Alliant Energy’s other comprehensive income (loss) was $2.2 million, ($0.1) million and $0 million, respectively; therefore, its comprehensive income was substantially equal to its net income and its comprehensive income attributable to Alliant Energy common shareowners was substantially equal to its net income attributable to Alliant Energy common shareowners for such periods. In 2018, 2017 and 2016, IPL and WPL had no



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other comprehensive income; therefore their comprehensive income was equal to their net income and their comprehensive income available for common stock was equal to their earnings available for common stock for such periods.

NOTE 8. PREFERRED STOCK

IPL is authorized to issue up to 16,000,000 shares of cumulative preferred stock in aggregate. Information related to the carrying value of IPL’s cumulative preferred stock at December 31 was as follows:



Series	Liquidation Preference/Stated Value	Shares Authorized	Shares Outstanding	2018		2017
				(in millions)
5.1%	$25	8,000,000	8,000,000		$200.0		$200.0

IPL may, at its option, redeem the 5.1% cumulative preferred stock for cash at a redemption price of $25 per share plus accrued and unpaid dividends up to the redemption date.

The current articles of incorporation of IPL contain a provision that grants the holders of its cumulative preferred stock voting rights to elect two members of IPL’s Board of Directors if preferred dividends equal to six or more quarterly dividend requirements (whether or not consecutive) are in arrears. Such voting rights would not provide the holders of IPL’s preferred stock control of the Board of Directors and could not force IPL to redeem its preferred stock.

NOTE 9. DEBT

NOTE 9(a) Short-term Debt - Alliant Energy and its subsidiaries maintain committed bank lines of credit to provide short-term borrowing flexibility and back-stop liquidity for commercial paper outstanding. At December 31, 2018, the short-term borrowing capacity under a single credit facility agreement, which expires in August 2022, totaled $1 billion ($400 million for Alliant Energy at the parent company level, $250 million for IPL and $350 million for WPL). Subject to certain conditions, Alliant Energy (at the parent company level), IPL and WPL may each reallocate and change its sublimit up to $500 million, $400 million and $500 million, respectively, within the $1 billion total commitment. Information regarding commercial paper classified as short-term debt and back-stopped by the credit facility was as follows (dollars in millions):



	Alliant Energy		IPL		WPL
December 31	2018	2017	2018	2017	2018	2017
Commercial paper outstanding	$441.2	$320.2	$50.4	$—	$105.5	$25.0
Commercial paper weighted average interest rates	2.8%	2.0%	2.8%	N/A	2.5%	1.5%
Available credit facility capacity	$558.8	$679.8	$199.6	$250.0	$244.5	$325.0



	Alliant Energy		IPL		WPL
For the year ended	2018	2017	2018	2017	2018	2017
Maximum amount outstanding (based on daily outstanding balances)	$446.5	$424.4	$50.4	$20.0	$126.0	$271.2
Average amount outstanding (based on daily outstanding balances)	$221.4	$294.3	$1.5	$0.5	$36.6	$118.2
Weighted average interest rates	2.2%	1.2%	2.3%	1.3%	2.1%	1.0%

In June 2018, AEF retired its $95 million, 364-day variable-rate (2.2% at December 31, 2017) term loan credit agreement.

Financial Covenants - The single credit facility agreement contains a financial covenant, which requires Alliant Energy, IPL and WPL to maintain certain debt-to-capital ratios in order to borrow under the credit facility. AEF’s term loan credit agreement contains a financial covenant, which requires Alliant Energy to maintain a certain debt-to-capital ratio in order to borrow under the term loan credit agreement. The required debt-to-capital ratios compared to the actual debt-to-capital ratios at December 31, 2018 were as follows:



	Alliant Energy	IPL	WPL
Requirement, not to exceed	65%	65%	65%
Actual	55%	45%	48%

The debt component of the capital ratios includes long- and short-term debt (excluding non-recourse debt and hybrid securities to the extent the total carrying value of such hybrid securities does not exceed 15% of consolidated capital of the applicable borrower), capital lease obligations, certain letters of credit, guarantees of the foregoing and new synthetic leases. Unfunded vested benefits under qualified pension plans and sales of accounts receivable are not included in the debt-to-capital ratios. The equity component of the capital ratios excludes accumulated other comprehensive income (loss).



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NOTE 9(b) Long-Term Debt - Long-term debt, net as of December 31 was as follows (dollars in millions):



	2018									2017
	Alliant Energy			IPL			WPL			Alliant Energy			IPL			WPL
Senior Debentures (a):
3.65%, due 2020		$200.0			$200.0			$—			$200.0			$200.0			$—
3.25%, due 2024	500.0			500.0			—			500.0			500.0			—
3.4%, due 2025	250.0			250.0			—			250.0			250.0			—
5.5%, due 2025	50.0			50.0			—			50.0			50.0			—
4.1%, due 2028 (b)	500.0			500.0			—			—			—			—
6.45%, due 2033	100.0			100.0			—			100.0			100.0			—
6.3%, due 2034	125.0			125.0			—			125.0			125.0			—
6.25%, due 2039	300.0			300.0			—			300.0			300.0			—
4.7%, due 2043	250.0			250.0			—			250.0			250.0			—
3.7%, due 2046	300.0			300.0			—			300.0			300.0			—
5.875% (Retired in 2018)	—			—			—			100.0			100.0			—
7.25% (Retired in 2018)	—			—			—			250.0			250.0			—
	2,575.0			2,575.0			—			2,425.0			2,425.0			—
Debentures (a):
5%, due 2019	250.0			—			250.0			250.0			—			250.0
4.6%, due 2020	150.0			—			150.0			150.0			—			150.0
2.25%, due 2022	250.0			—			250.0			250.0			—			250.0
3.05%, due 2027	300.0			—			300.0			300.0			—			300.0
6.25%, due 2034	100.0			—			100.0			100.0			—			100.0
6.375%, due 2037	300.0			—			300.0			300.0			—			300.0
7.6%, due 2038	250.0			—			250.0			250.0			—			250.0
4.1%, due 2044	250.0			—			250.0			250.0			—			250.0
	1,850.0			—			1,850.0			1,850.0			—			1,850.0
Other:
AEF term loan credit agreement through April 2020, 3% at December 31, 2018 (with Alliant Energy as guarantor) (c)	300.0			—			—			—			—			—
Corporate Services 3.45% senior notes, due 2022 (a)	75.0			—			—			75.0			—			—
AEF 3.75% senior notes, due 2023 (with Alliant Energy as guarantor) (a)(d)	400.0			—			—			—			—			—
AEF 4.25% senior notes, due 2028 (with Alliant Energy as guarantor) (a)(d)	300.0			—			—			—			—			—
Sheboygan Power, LLC 5.06% senior secured notes, due 2019 to 2024 (secured by the Sheboygan Falls Energy Facility and related assets) (a)	44.3			—			—			49.6			—			—
AEF term loan credit agreement, 2% at December 31, 2017 (with Alliant Energy as guarantor) (Retired in 2018) (d)	—			—			—			500.0			—			—
Other, 1% at December 31, 2018, due 2019 to 2025	2.4			—			—			2.9			—			—
	1,121.7			—			—			627.5			—			—
Subtotal	5,546.7			2,575.0			1,850.0			4,902.5			2,425.0			1,850.0
Current maturities	(256.5		)	—			(250.0		)	(855.7		)	(350.0		)	—
Unamortized debt issuance costs	(32.1		)	(17.2		)	(9.6		)	(25.4		)	(14.3		)	(10.5		)
Unamortized debt (discount) and premium, net	(11.8		)	(5.5		)	(5.5		)	(10.8		)	(4.7		)	(6.1		)
Long-term debt, net (e)		$5,246.3			$2,552.3			$1,584.9			$4,010.6			$2,056.0			$1,833.4


(a)	Contains optional redemption provisions which, if elected by the issuer at its sole discretion, could require material redemption premium payments by the issuer. The redemption premium payments under these optional redemption provisions are variable and dependent on applicable U.S. Treasury rates at the time of redemption.


(b)	In September 2018, IPL issued $500 million of 4.1% senior debentures due 2028. The senior debentures were issued as green bonds, and all of the net proceeds were allocated for the construction and development of wind and solar projects.


(c)	In April 2018, AEF entered into a $300 million variable-rate term loan credit agreement and used the proceeds from borrowings under this agreement for general corporate purposes. Refer to Note 9(a) for discussion of a financial covenant contained in AEF’s term loan credit agreement.


(d)	In June 2018, AEF issued $400 million of 3.75% senior notes due 2023 and $300 million of 4.25% senior notes due 2028. The proceeds from the issuances were used by AEF to retire its $500 million and $95 million variable-rate term loan credit agreements expiring in 2018, to reduce Alliant Energy’s outstanding commercial paper and for general corporate purposes.


(e)	There were no significant sinking fund requirements related to the outstanding long-term debt.



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Five-Year Schedule of Long-term Debt Maturities - At December 31, 2018, long-term debt maturities for 2019 through 2023 were as follows (in millions):



	2019		2020		2021		2022		2023
IPL		$—		$200		$—		$—		$—
WPL	250		150		—		250		—
Corporate Services	—		—		—		75		—
AEF	6		307		8		8		408
Alliant Energy		$256		$657		$8		$333		$408

Fair Value of Long-term Debt - Refer to Note 16 for information on the fair value of long-term debt outstanding.

NOTE 10. LEASES

NOTE 10(a) Operating Leases - Various agreements have been entered into related to property, plant and equipment rights that are accounted for as operating leases. In 2018, 2017 and 2016, rental expenses associated with operating leases were not material. At December 31, 2018, future minimum operating lease payments, excluding contingent rentals, were as follows (in millions):



	2019		2020		2021		2022		2023		Thereafter		Total
Alliant Energy		$5		$5		$3		$3		$2		$12		$30
IPL	3		2		2		2		2		12		23
WPL	2		3		1		—		—		—		6

NOTE 10(b) Capital Leases -

WPL - In 2005, WPL entered into a 20-year agreement with AEF’s Non-utility Generation business to lease the Sheboygan Falls Energy Facility, with an option for two lease renewal periods thereafter. The lease became effective in 2005 when the EGU began commercial operation. WPL is responsible for the operation of the EGU and has exclusive rights to its output, and the PSCW approved this affiliated lease agreement in 2005. The capital lease asset is amortized using the straight-line method over the 20-year lease term. WPL’s retail and wholesale rates include recovery of the Sheboygan Falls Energy Facility lease payments. The Sheboygan Falls Energy Facility lease expenses were included in WPL’s income statements as follows (in millions):



	2018		2017		2016
Interest expense		$8		$9		$9
Depreciation and amortization	6		6		6
		$14		$15		$15

At December 31, 2018, WPL’s estimated future minimum capital lease payments for the Sheboygan Falls Energy Facility were as follows (in millions):



	2019	2020	2021	2022	2023	Thereafter	Total	Less: amount representing interest	Present value of minimum capital lease payments
Sheboygan Falls Energy Facility	$15	$15	$15	$15	$15	$19	$94	$26	$68

NOTE 11. REVENUES

Revenues from Alliant Energy’s, IPL’s and WPL’s utility businesses are primarily from electric and gas sales provided to customers based on approved tariffs or specific contracts with customers. IPL’s and WPL’s primary performance obligations under such arrangements are to deliver electricity and gas, and their customers simultaneously receive and consume the electricity and gas. For such arrangements, revenues are recognized equivalent to the value of the electricity or gas supplied during each period, including amounts billed during each period and changes in amounts estimated to be billed at the end of each period. IPL and WPL apply the right to invoice method to measure progress towards completing performance obligations to transfer electricity and gas to their customers.

IPL provides retail electric and gas service to customers in Iowa, and WPL provides retail and wholesale electric and retail gas service to customers in Wisconsin. IPL also sells electricity to wholesale customers in Minnesota, Illinois and Iowa, as well as steam from its Prairie Creek Generating Station to high-pressure steam customers in Iowa.

IPL’s and WPL’s retail electric and gas revenues include sales to residential, commercial and industrial customers. IPL’s and WPL’s retail electric and gas customer prices are based on IPL’s and WPL’s cost of service and are determined through



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general rate review proceedings and various tariff filings with the IUB and PSCW, respectively. Such tariff-based services provide electricity or gas to customers without a defined contractual term.

IPL and WPL have wholesale electric market-based rate authority from FERC allowing them to participate in wholesale energy markets (e.g. MISO) and transact directly with third parties. This authority from FERC allows sales of electricity referred to as bulk power sales based on current market values. FERC also allows IPL and WPL to enter into power supply agreements with municipalities and rural electric cooperatives with defined contractual terms, which include standard pricing mechanisms that are detailed in current tariffs accepted by FERC through wholesale rate review proceedings.

Revenues from Alliant Energy’s non-utility business customers are primarily from its Transportation business, which includes a short-line railway that provides freight service, hauling services on the Mississippi River, and other transfer and storage services.

As of December 31, 2018, revenue expected to be recognized in any future year related to remaining performance obligations is not material, as the majority of revenues are recognized as services are rendered or commodities are delivered, and are from contracts with durations of less than one year. Alliant Energy, IPL and WPL do not have any material contract assets or contract liabilities, or contract acquisition fulfillment costs.

Disaggregation of revenues from contracts with customers, which correlates to revenues for each reportable segment, was as follows (in millions):



	Alliant Energy						IPL						WPL
	2018		2017		2016		2018		2017		2016		2018		2017		2016
Electric Utility:
Retail - residential		$1,063.4		$1,006.2		$1,001.1		$590.6		$535.6		$536.7		$472.8		$470.6		$464.4
Retail - commercial	735.6		710.3		712.6		486.8		452.7		445.4		248.8		257.6		267.2
Retail - industrial	888.8		853.1		851.1		500.8		459.7		460.4		388.0		393.4		390.7
Wholesale	188.4		238.4		256.6		71.2		95.5		94.2		117.2		142.9		162.4
Bulk power and other	124.1		86.7		54.1		81.7		55.4		33.0		42.4		31.3		21.1
Total Electric Utility	3,000.3		2,894.7		2,875.5		1,731.1		1,598.9		1,569.7		1,269.2		1,295.8		1,305.8
Gas Utility:
Retail - residential	254.4		224.7		197.6		152.3		123.2		110.6		102.1		101.5		87.0
Retail - commercial	133.0		123.2		109.6		75.9		67.9		61.9		57.1		55.3		47.7
Retail - industrial	14.9		16.7		15.2		10.2		11.1		10.6		4.7		5.6		4.6
Transportation/other	44.3		36.3		33.0		27.8		23.8		20.9		16.5		12.5		12.1
Total Gas Utility	446.6		400.9		355.4		266.2		226.0		204.0		180.4		174.9		151.4
Other Utility:
Steam	35.2		34.6		33.9		35.2		34.6		33.9		—		—		—
Other utility	12.8		12.9		14.7		9.8		10.8		12.8		3.0		2.1		1.9
Total Other Utility	48.0		47.5		48.6		45.0		45.4		46.7		3.0		2.1		1.9
Non-Utility and Other:
Transportation and other	39.6		39.1		40.5		—		—		—		—		—		—
Total Non-Utility and Other	39.6		39.1		40.5		—		—		—		—		—		—
Total revenues		$3,534.5		$3,382.2		$3,320.0		$2,042.3		$1,870.3		$1,820.4		$1,452.6		$1,472.8		$1,459.1

NOTE 12. INCOME TAXES

Federal Tax Reform Adjustments - In December 2017, Federal Tax Reform was enacted, which had a material impact on Alliant Energy’s, IPL’s and WPL’s 2017 financial statements since changes in tax laws must be recognized in the period in which the law is enacted. The most significant provision of Federal Tax Reform that impact Alliant Energy, IPL and WPL was the reduction in the federal corporate tax rate from 35% to 21%. As a result of Federal Tax Reform, at December 31, 2017, Alliant Energy’s, IPL’s and WPL’s regulated utility operations recorded the net impacts from re-measuring deferred tax assets and liabilities as a change in regulatory liabilities or regulatory assets. Alliant Energy’s, IPL’s and WPL’s non-utility operations recorded the net change in deferred tax assets and liabilities to “Income tax expense (benefit)” in their respective income statement or as an increase to “Other liabilities” or decrease in “ATC Holdings” on Alliant Energy’s balance sheet. As a result of Federal Tax Reform, Alliant Energy, IPL and WPL recorded tax expense (benefits) in their 2017 income statements of ($18.1) million, $3.8 million, and ($14.5) million, respectively.



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In 2018, additional rules were issued related to Federal Tax Reform, including clarifications of the treatment of bonus depreciation deductions, which impacted the federal income tax return for the calendar year 2017. As result of these clarifying rules, Alliant Energy, IPL and WPL recorded tax benefits of $5.6 million, $1.1 million and $5.5 million, respectively, in 2018.

Iowa Tax Reform - In May 2018, Iowa tax reform was enacted, resulting in a reduction in the Iowa income tax rate from 12% to 9.8%, effective January 1, 2021 and the elimination of the deduction for federal income taxes, effective January 1, 2022. Alliant Energy’s and IPL’s deferred tax assets and liabilities as of June 30, 2018 were remeasured based upon the new tax rate, and as a result, Alliant Energy’s and IPL’s tax-related regulatory assets decreased $33.7 million and tax-related regulatory liabilities increased $7.3 million in the second quarter of 2018.

Income Tax Expense (Benefit) - The components of “Income tax expense (benefit)” in the income statements were as follows (in millions):



	Alliant Energy									IPL									WPL
	2018			2017			2016			2018			2017			2016			2018			2017			2016
Current tax expense (benefit):
Federal		($1.0	)		($41.0	)		$1.8			$14.9			($27.9	)		($12.8	)		($9.2	)		$5.5			($22.3	)
State	(5.1		)	8.5			17.2			(7.1		)	1.6			15.5			(4.4		)	2.5			1.1
IPL’s tax benefit riders	(13.2		)	(40.4		)	(44.2		)	(13.2		)	(40.4		)	(44.2		)	—			—			—
Deferred tax expense (benefit):
Federal	67.9			159.5			112.8			9.5			72.5			59.1			43.8			55.0			112.3
State	29.8			12.3			4.9			7.3			(2.2		)	(9.0		)	22.1			16.6			20.8
Production tax credits	(29.5		)	(31.1		)	(31.8		)	(14.0		)	(14.1		)	(14.0		)	(15.5		)	(17.0		)	(17.8		)
Investment tax credits	(1.2		)	(1.1		)	(1.3		)	(0.6		)	(0.4		)	(0.5		)	(0.6		)	(0.7		)	(0.8		)
		$47.7			$66.7			$59.4			($3.2	)		($10.9	)		($5.9	)		$36.2			$61.9			$93.3

Income Tax Rates - The overall income tax rates shown in the following table were computed by dividing income tax expense (benefit) by income from continuing operations before income taxes.



	Alliant Energy						IPL						WPL
	2018		2017		2016		2018		2017		2016		2018		2017		2016
Statutory federal income tax rate	21.0	%	35.0	%	35.0	%	21.0	%	35.0	%	35.0	%	21.0	%	35.0	%	35.0	%
State income taxes, net of federal benefits	7.0		5.5		5.4		7.7		6.5		6.4		6.2		5.1		5.1
Effect of rate-making on property-related differences	(7.6	)	(8.5	)	(8.5	)	(14.0	)	(19.1	)	(16.2	)	(2.3	)	(1.7	)	(0.7	)
Production tax credits	(5.2	)	(6.1	)	(7.2	)	(5.2	)	(6.7	)	(6.3	)	(6.4	)	(7.1	)	(6.2	)
IPL’s tax benefit riders	(2.3	)	(7.6	)	(10.0	)	(4.9	)	(18.7	)	(20.1	)	—		—		—
Adjustment for prior period taxes	(2.3	)	(1.5	)	(0.8	)	(4.8	)	(3.4	)	(1.2	)	(0.2	)	—		(0.1	)
Federal Tax Reform adjustments	(1.0	)	(3.4	)	—		(0.4	)	1.7		—		(2.3	)	(5.8	)	—
Other items, net	(1.2	)	(0.9	)	(0.5	)	(0.6	)	(0.3	)	(0.3	)	(1.2	)	(0.6	)	(0.5	)
Overall income tax rate	8.4	%	12.5	%	13.4	%	(1.2	%)	(5.0	%)	(2.7	%)	14.8	%	24.9	%	32.6	%



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Deferred Tax Assets and Liabilities - The deferred tax assets and liabilities included on the balance sheets at December 31 arise from the following temporary differences (in millions):



	Alliant Energy						IPL						WPL
	2018			2017			2018			2017			2018			2017
Deferred tax liabilities:
Property		$1,975.5			$1,852.7			$1,158.4			$1,102.6			$735.2			$674.2
ATC Holdings	102.4			86.4			—			—			—			—
Other	80.5			75.9			69.4			63.4			34.4			36.5
Total deferred tax liabilities	2,158.4			2,015.0			1,227.8			1,166.0			769.6			710.7
Deferred tax assets:
Federal credit carryforwards	299.1			260.7			133.2			113.1			147.4			131.0
Net operating losses carryforwards - federal	158.6			174.4			114.1			107.4			26.4			43.7
Net operating losses carryforwards - state	47.0			41.3			0.9			0.9			0.5			0.2
Other	59.8			69.2			22.8			34.5			14.1			14.7
Subtotal deferred tax assets	564.5			545.6			271.0			255.9			188.4			189.6
Valuation allowances	(9.2		)	(9.0		)	(0.5		)	(0.6		)	(0.8		)	(1.3		)
Total deferred tax assets	555.3			536.6			270.5			255.3			187.6			188.3
Total deferred tax liabilities, net		$1,603.1			$1,478.4			$957.3			$910.7			$582.0			$522.4

Carryforwards - At December 31, 2018, carryforwards and expiration dates were estimated as follows (in millions):



	Range of Expiration Dates	Alliant Energy		IPL		WPL
Federal net operating losses	2031-2037		$766		$551		$126
State net operating losses	2018-2038	792		13		8
Federal tax credits	2022-2038	299		133		147

Valuation Allowances - Due to the anticipated future reductions in revenues from utility customers due to Federal Tax Reform, Alliant Energy expects its Federal net operating losses carryforwards will not be fully utilized until 2024. Because taxable income must be reduced by net operating losses carryforwards prior to utilizing federal tax credit carryforwards, Alliant Energy currently does not expect to utilize 2002 and 2003 vintage federal credit carryforwards prior to their expiration in 2022 and 2023, respectively. As a result, Alliant Energy established valuation allowances for the 2002 and 2003 vintage federal credit carryforwards in 2017 that remain as of December 31, 2018.

Uncertain Tax Positions - At December 31, 2018, 2017 and 2016, there were no uncertain tax positions or penalties accrued related to uncertain tax positions. As of December 31, 2018, no material changes to unrecognized tax benefits are expected during the next 12 months.

Open tax years - Tax years that remain subject to the statute of limitations in the major jurisdictions for each of Alliant Energy, IPL and WPL are as follows:



Consolidated federal income tax returns (a)	2015	-	2017
Consolidated Iowa income tax returns (b)	2015	-	2017
Wisconsin combined tax returns (c)	2014	-	2017


(a)	These federal tax returns are effectively settled as a result of participation in the IRS Compliance Assurance Program, which allows Alliant Energy and the IRS to work together to resolve issues related to Alliant Energy’s current tax year before filing its federal income tax return. The statute of limitations for these federal tax returns expires three years from each filing date.


(b)	The statute of limitations for these Iowa tax returns expires three years from each filing date.


(c)	The statute of limitations for these Wisconsin combined tax returns expires four years from each filing date.

NOTE 13. BENEFIT PLANS

NOTE 13(a) Pension and Other Postretirement Benefits Plans - Retirement benefits are provided to substantially all employees through various qualified and non-qualified non-contributory defined benefit pension plans (currently closed to new hires), and/or through defined contribution plans (including 401(k) savings plans). Benefits of the non-contributory defined benefit pension plans are based on the plan participant’s years of service, age and compensation. Benefits of the defined contribution plans are based on the plan participant’s years of service, age, compensation and contributions. Certain



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defined benefit postretirement health care and life benefits are provided to eligible retirees. In general, the retiree health care plans consist of fixed benefit subsidy structures and the retiree life insurance plans are non-contributory.

IPL and WPL account for their participation in Alliant Energy and Corporate Services sponsored plans as multiple-employer plans. In IPL’s and WPL’s tables below, the defined benefit pension plan amounts represent those respective amounts for their bargaining unit employees covered under the qualified plans that they sponsor, as well as amounts directly assigned to them related to their current and former non-bargaining employees who are participants in the Alliant Energy and Corporate Services sponsored qualified and non-qualified defined benefit pension plans. In IPL’s and WPL’s tables below, the OPEB plan amounts represent respective amounts for their employees, as well as amounts directly assigned to them related to their current and former non-bargaining employees who are participants in the Corporate Services sponsored OPEB plan.

Assumptions - The assumptions for defined benefit pension and OPEB plans at the measurement date of December 31 were as follows:



	Defined Benefit Pension Plans												OPEB Plans
Alliant Energy	2018				2017				2016				2018	2017	2016
Discount rate for benefit obligations	4.34%				3.66%				4.19%				4.24%	3.53%	3.98%
Discount rate for net periodic cost	3.66%				4.19%				4.47%				3.53%	3.98%	4.30%
Expected rate of return on plan assets	7.60%				7.60%				7.60%				5.44%	5.80%	6.30%
Interest crediting rate for Alliant Energy Cash Balance Pension Plan	5.04%				4.64%				3.17%				N/A	N/A	N/A
Rate of compensation increase	3.65	%	-	4.50%	3.65	%	-	4.50%	3.65	%	-	4.50%	N/A	N/A	N/A
Medical cost trend on covered charges:
Initial trend rate (end of year)	N/A				N/A				N/A				6.50%	6.75%	7.00%
Ultimate trend rate	N/A				N/A				N/A				5.00%	5.00%	5.00%



	Qualified Defined Benefit Pension Plan			OPEB Plans
IPL	2018	2017	2016	2018	2017	2016
Discount rate for benefit obligations	4.35%	3.68%	4.22%	4.23%	3.51%	3.95%
Discount rate for net periodic cost	3.68%	4.22%	4.50%	3.51%	3.95%	4.28%
Expected rate of return on plan assets	7.60%	7.60%	7.60%	5.60%	6.20%	6.60%
Rate of compensation increase	3.65%	3.65%	3.65%	N/A	N/A	N/A
Medical cost trend on covered charges:
Initial trend rate (end of year)	N/A	N/A	N/A	6.50%	6.75%	7.00%
Ultimate trend rate	N/A	N/A	N/A	5.00%	5.00%	5.00%



	Qualified Defined Benefit Pension Plan			OPEB Plans
WPL	2018	2017	2016	2018	2017	2016
Discount rate for benefit obligations	4.35%	3.69%	4.23%	4.23%	3.51%	3.96%
Discount rate for net periodic cost	3.69%	4.23%	4.51%	3.51%	3.96%	4.28%
Expected rate of return on plan assets	7.60%	7.60%	7.60%	3.84%	3.50%	4.70%
Rate of compensation increase	3.65%	3.65%	3.65%	N/A	N/A	N/A
Medical cost trend on covered charges:
Initial trend rate (end of year)	N/A	N/A	N/A	6.50%	6.75%	7.00%
Ultimate trend rate	N/A	N/A	N/A	5.00%	5.00%	5.00%

Expected rate of return on plan assets - The expected rate of return on plan assets is based on projected asset class returns using target allocations. A forward-looking building blocks approach is used, and historical returns, survey information and capital market information are analyzed to support the expected rate of return on plan assets assumption. Refer to “Investment Strategy for Plan Assets” below for additional information related to investment strategy and mix of assets for the pension and OPEB plans.

Life Expectancy - The life expectancy assumption is used in determining the benefit obligation and net periodic benefit cost for defined benefit pension and OPEB plans. This assumption utilizes base mortality tables that were released in 2014 by the Society of Actuaries, and was updated in 2016 and 2018.



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Net Periodic Benefit Costs - The components of net periodic benefit costs for sponsored defined benefit pension and OPEB plans are included in the tables below (in millions). The service cost component of net periodic benefit costs is included in “Other operation and maintenance” expenses in the income statements and all other components of net periodic benefit costs are included in “Other (income) and deductions” in the income statements.



Alliant Energy	Defined Benefit Pension Plans												OPEB Plans
2018				2017				2016				2018				2017				2016
Service cost		$12.1				$12.5				$12.6				$4.2				$5.0				$5.3
Interest cost	46.8				51.0				53.0				7.7				8.6				9.4
Expected return on plan assets (a)	(69.7		)		(65.5		)		(65.5		)		(6.0		)		(6.1		)		(6.1		)
Amortization of prior service credit (b)	(0.7		)		(0.4		)		(0.3		)		(0.2		)		(0.2		)		(4.1		)
Amortization of actuarial loss (c)	35.2				37.6				37.4				3.4				3.8				4.7
Settlement losses (d)	—				0.9				—				—				—				—
		$23.7				$36.1				$37.2				$9.1				$11.1				$9.2



IPL	Defined Benefit Pension Plans												OPEB Plans
2018				2017				2016				2018				2017				2016
Service cost		$7.4				$7.3				$7.5				$1.7				$2.1				$2.3
Interest cost	21.4				23.5				24.5				3.1				3.5				3.8
Expected return on plan assets (a)	(32.6		)		(30.8		)		(30.9		)		(4.4		)		(4.3		)		(4.3		)
Amortization of prior service credit (b)	(0.2		)		(0.2		)		(0.2		)		—				—				(2.6		)
Amortization of actuarial loss (c)	14.9				16.1				16.5				1.3				2.0				2.6
		$10.9				$15.9				$17.4				$1.7				$3.3				$1.8



WPL	Defined Benefit Pension Plans												OPEB Plans
2018				2017				2016				2018				2017				2016
Service cost		$4.4				$4.9				$4.9				$1.6				$1.9				$2.0
Interest cost	20.2				21.8				22.3				3.1				3.4				3.8
Expected return on plan assets (a)	(30.4		)		(28.5		)		(28.3		)		(0.6		)		(0.8		)		(0.8		)
Amortization of prior service cost (credit) (b)	(0.1		)		0.1				0.2				(0.2		)		(0.2		)		(0.9		)
Amortization of actuarial loss (c)	17.2				18.5				17.6				2.0				1.6				1.8
		$11.3				$16.8				$16.7				$5.9				$5.9				$5.9


(a)	The expected return on plan assets is based on the expected rate of return on plan assets and the fair value approach to the market-related value of plan assets.


(b)	Unrecognized prior service costs (credits) for the OPEB plans are amortized over the average future service period to full eligibility of the participants of each plan.


(c)	Unrecognized net actuarial gains or losses in excess of 10% of the greater of the plans’ benefit obligations or assets are amortized over the average future service lives of plan participants, except for the Alliant Energy Cash Balance Pension Plan where gains or losses outside the 10% threshold are amortized over the time period the participants are expected to receive benefits.


(d)	Settlement losses related to payments made to retired executives of Alliant Energy.



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Benefit Plan Assets and Obligations - A reconciliation of the funded status of qualified and non-qualified defined benefit pension and OPEB plans to the amounts recognized on the balance sheets at December 31 was as follows (in millions):



	Defined Benefit Pension Plans						OPEB Plans
Alliant Energy	2018			2017			2018			2017
Change in benefit obligation:
Net benefit obligation at January 1		$1,303.1			$1,244.3			$222.3			$220.1
Service cost	12.1			12.5			4.2			5.0
Interest cost	46.8			51.0			7.7			8.6
Plan participants’ contributions	—			—			3.1			2.9
Actuarial (gain) loss	(96.2		)	83.6			(8.2		)	5.4
Gross benefits paid	(90.8		)	(88.3		)	(23.0		)	(19.7		)
Net benefit obligation at December 31	1,175.0			1,303.1			206.1			222.3
Change in plan assets:
Fair value of plan assets at January 1	950.7			895.7			111.1			105.8
Actual return on plan assets	(57.8		)	136.7			(2.6		)	12.9
Employer contributions	6.5			6.6			10.5			9.2
Plan participants’ contributions	—			—			3.1			2.9
Gross benefits paid	(90.8		)	(88.3		)	(23.0		)	(19.7		)
Fair value of plan assets at December 31	808.6			950.7			99.1			111.1
Under funded status at December 31		($366.4	)		($352.4	)		($107.0	)		($111.2	)



	Defined Benefit Pension Plans						OPEB Plans
Alliant Energy	2018			2017			2018			2017
Amounts recognized on the balance sheets consist of:
Non-current assets		$—			$—			$7.5			$8.8
Current liabilities	(2.3		)	(2.2		)	(9.6		)	(9.1		)
Pension and other benefit obligations	(364.1		)	(350.2		)	(104.9		)	(110.9		)
Net amounts recognized at December 31		($366.4	)		($352.4	)		($107.0	)		($111.2	)
Amounts recognized in Regulatory Assets consist of:
Net actuarial loss		$505.2			$509.1			$44.5			$47.4
Prior service credit	(5.8		)	(6.5		)	(1.1		)	(1.3		)
		$499.4			$502.6			$43.4			$46.1



	Defined Benefit Pension Plans						OPEB Plans
IPL	2018			2017			2018			2017
Change in benefit obligation:
Net benefit obligation at January 1		$592.9			$570.4			$89.4			$90.1
Service cost	7.4			7.3			1.7			2.1
Interest cost	21.4			23.5			3.1			3.5
Plan participants’ contributions	—			—			1.0			1.0
Actuarial (gain) loss	(44.4		)	34.9			(4.3		)	(0.1		)
Gross benefits paid	(43.4		)	(43.2		)	(8.4		)	(7.2		)
Net benefit obligation at December 31	533.9			592.9			82.5			89.4
Change in plan assets:
Fair value of plan assets at January 1	443.7			422.0			72.9			68.2
Actual return on plan assets	(26.8		)	64.3			(1.4		)	8.9
Employer contributions	4.3			0.6			2.6			2.0
Plan participants’ contributions	—			—			1.0			1.0
Gross benefits paid	(43.4		)	(43.2		)	(8.4		)	(7.2		)
Fair value of plan assets at December 31	377.8			443.7			66.7			72.9
Under funded status at December 31		($156.1	)		($149.2	)		($15.8	)		($16.5	)



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	Defined Benefit Pension Plans						OPEB Plans
IPL	2018			2017			2018			2017
Amounts recognized on the balance sheets consist of:
Non-current assets		$—			$—			$4.7			$5.9
Current liabilities	(0.6		)	(0.5		)	(1.9		)	(2.0		)
Pension and other benefit obligations	(155.5		)	(148.7		)	(18.6		)	(20.4		)
Net amounts recognized at December 31		($156.1	)		($149.2	)		($15.8	)		($16.5	)
Amounts recognized in Regulatory Assets consist of:
Net actuarial loss		$218.8			$218.9			$18.8			$18.7
Prior service credit	(1.8		)	(2.1		)	—			—
		$217.0			$216.8			$18.8			$18.7



	Defined Benefit Pension Plans						OPEB Plans
WPL	2018			2017			2018			2017
Change in benefit obligation:
Net benefit obligation at January 1		$559.8			$529.2			$90.4			$88.9
Service cost	4.4			4.9			1.6			1.9
Interest cost	20.2			21.8			3.1			3.4
Plan participants’ contributions	—			—			1.4			1.4
Actuarial (gain) loss	(40.0		)	38.3			(2.5		)	4.1
Gross benefits paid	(37.8		)	(34.4		)	(10.8		)	(9.3		)
Net benefit obligation at December 31	506.6			559.8			83.2			90.4
Change in plan assets:
Fair value of plan assets at January 1	415.0			389.7			18.7			18.6
Actual return on plan assets	(25.1		)	59.6			(0.1		)	1.2
Employer contributions	0.1			0.1			7.5			6.8
Plan participants’ contributions	—			—			1.4			1.4
Gross benefits paid	(37.8		)	(34.4		)	(10.8		)	(9.3		)
Fair value of plan assets at December 31	352.2			415.0			16.7			18.7
Under funded status at December 31		($154.4	)		($144.8	)		($66.5	)		($71.7	)



	Defined Benefit Pension Plans						OPEB Plans
WPL	2018			2017			2018			2017
Amounts recognized on the balance sheets consist of:
Non-current assets		$—			$—			$2.8			$2.9
Current liabilities	(0.1		)	(0.1		)	(7.4		)	(6.8		)
Pension and other benefit obligations	(154.3		)	(144.7		)	(61.9		)	(67.8		)
Net amounts recognized at December 31		($154.4	)		($144.8	)		($66.5	)		($71.7	)
Amounts recognized in Regulatory Assets consist of:
Net actuarial loss		$223.0			$224.7			$19.9			$23.6
Prior service credit	(1.3		)	(1.5		)	(1.1		)	(1.3		)
		$221.7			$223.2			$18.8			$22.3

Actuarial gains related to benefit obligations in 2018 for defined benefit pension and OPEB plans were primarily due to increases in the discount rates and the impact of the updated mortality table, partially offset by experience losses. Actuarial losses related to benefit obligations in 2017 for defined benefit pension and OPEB plans were primarily due to decreases in the discount rates.



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Included in the following tables are accumulated benefit obligations, aggregate amounts applicable to defined benefit pension and OPEB plans with accumulated benefit obligations in excess of plan assets, as well as defined benefit pension plans with projected benefit obligations in excess of plan assets as of the December 31 measurement date (in millions):



	Defined Benefit Pension Plans				OPEB Plans
Alliant Energy	2018		2017		2018		2017
Accumulated benefit obligations		$1,139.9		$1,269.0		$206.1		$222.3
Plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligations	1,139.9		1,269.0		206.1		222.3
Fair value of plan assets	808.6		950.7		99.1		111.1
Plans with projected benefit obligations in excess of plan assets:
Projected benefit obligations	1,175.0		1,303.1		N/A		N/A
Fair value of plan assets	808.6		950.7		N/A		N/A



	Defined Benefit Pension Plans				OPEB Plans
IPL	2018		2017		2018		2017
Accumulated benefit obligations		$514.3		$573.1		$82.5		$89.4
Plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligations	514.3		573.1		82.5		89.4
Fair value of plan assets	377.8		443.7		66.7		72.9
Plans with projected benefit obligations in excess of plan assets:
Projected benefit obligations	533.9		592.9		N/A		N/A
Fair value of plan assets	377.8		443.7		N/A		N/A



	Defined Benefit Pension Plans				OPEB Plans
WPL	2018		2017		2018		2017
Accumulated benefit obligations		$494.8		$548.1		$83.2		$90.4
Plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligations	494.8		548.1		83.2		90.4
Fair value of plan assets	352.2		415.0		16.7		18.7
Plans with projected benefit obligations in excess of plan assets:
Projected benefit obligations	506.6		559.8		N/A		N/A
Fair value of plan assets	352.2		415.0		N/A		N/A

In addition to the amounts recognized in regulatory assets in the above tables for IPL and WPL, regulatory assets were recognized for amounts associated with Corporate Services employees participating in other Alliant Energy sponsored benefit plans that were allocated to IPL and WPL at December 31 as follows (in millions):



	IPL				WPL
	2018		2017		2018		2017
Regulatory assets		$38.2		$38.9		$27.7		$28.1

Estimated Future Employer Contributions and Benefit Payments - Estimated funding for the qualified and non-qualified defined benefit pension and OPEB plans for 2019 is as follows (in millions):



	Alliant Energy		IPL		WPL
Defined benefit pension plans (a)		$33.8		$16.5		$15.6
OPEB plans	9.6		1.9		7.4

(a)

Alliant Energy sponsors several non-qualified defined benefit pension plans that cover certain current and former key employees of IPL and WPL. Alliant Energy allocates pension costs to IPL and WPL for these plans. In addition, IPL and WPL amounts reflect funding for their non-bargaining employees who are participants in the Alliant Energy and Corporate Services sponsored qualified and non-qualified defined benefit pension plans.



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Expected benefit payments for the qualified and non-qualified defined benefit plans, which reflect expected future service, as appropriate, are as follows (in millions):



Alliant Energy	2019		2020		2021		2022		2023		2024 - 2028
Defined benefit pension benefits		$71.7		$86.1		$74.7		$76.3		$77.8		$388.3
OPEB	19.3		18.1		17.8		17.5		17.0		77.7
		$91.0		$104.2		$92.5		$93.8		$94.8		$466.0



IPL	2019		2020		2021		2022		2023		2024 - 2028
Defined benefit pension benefits		$33.0		$35.1		$35.1		$36.4		$37.5		$182.9
OPEB	7.3		7.3		7.2		7.1		6.9		31.3
		$40.3		$42.4		$42.3		$43.5		$44.4		$214.2



WPL	2019		2020		2021		2022		2023		2024 - 2028
Defined benefit pension benefits		$31.4		$31.8		$31.9		$32.0		$32.5		$165.3
OPEB	8.8		7.6		7.4		7.1		6.8		30.7
		$40.2		$39.4		$39.3		$39.1		$39.3		$196.0

Investment Strategy for Plan Assets - Investment strategies for defined benefit pension and OPEB plan assets combine preservation of principal and prudent risk-taking to protect the integrity of plan assets, in order to meet the obligations to plan participants while minimizing benefit costs over the long term. Investment risk of plan assets is mitigated through diversification, including broad U.S. equity, international equity and fixed income exposure, and global asset and risk parity strategies. Global asset and risk parity strategies may include investments in global equity, global debt, commodities and currencies.

Defined Benefit Pension Plan Assets - The asset mix of defined benefit pension plans is governed by allocation targets. Historical performance results and future expectations suggest that equity securities will provide higher total investment returns than fixed income securities over a long-term investment horizon. Consistent with the goals of meeting obligations to plan participants and minimizing benefit costs over the long-term, the defined benefit pension plans have a long-term investment posture more heavily weighted toward equity holdings. The asset allocation is monitored regularly and appropriate steps are taken as needed to rebalance the assets within the prescribed ranges. An overlay management service is also used to help maintain target allocations and meet liquidity needs. The overlay manager is authorized to use derivative financial instruments to facilitate this service. For separately managed accounts, prohibited investments include, but are not limited to, direct ownership of real estate, oil and gas limited partnerships, securities of the managers’ firms or affiliate firms, and Alliant Energy securities.

At December 31, 2018, the current target ranges and actual allocations for the defined benefit pension plan assets were as follows:



	Target Range				Actual
	Allocation				Allocation
Cash and equivalents	0	%	-	5%	4%
Equity securities - U.S.	11	%	-	41%	25%
Equity securities - international	14	%	-	34%	22%
Global asset securities	5	%	-	15%	9%
Risk parity securities	5	%	-	15%	10%
Fixed income securities	20	%	-	40%	30%

Other Postretirement Benefits Plan Assets - OPEB plan assets are comprised of specific assets within certain defined benefit pension plans (401(h) assets) as well as assets held in VEBA trusts. The investment strategy of the Corporate Services 401(h) assets mirrors those of the defined benefit pension plans, which are discussed above. For VEBA trusts with assets greater than $5 million and the WPL 401(h) assets, the mix among asset classes is governed by allocation targets. The asset allocation is monitored regularly and appropriate steps are taken as needed to rebalance the assets within the prescribed ranges. At December 31, 2018, the current target ranges and actual allocations for VEBA trusts with assets greater than $5 million and the WPL 401(h) assets were as follows:



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	Target Range				Actual
	Allocation				Allocation
Cash and equivalents	0	%	-	5%	1%
Equity securities - U.S.	0	%	-	46%	24%
Equity securities - international	0	%	-	34%	2%
Fixed income securities	20	%	-	100%	73%

Fair Value Measurements - Fair value measurement accounting establishes three levels of fair value hierarchy that prioritize the inputs to valuation techniques used to measure fair value. Refer to Note 16 for discussion of levels within the fair value hierarchy. Level 1 items include investments in securities held in registered investment companies, treasury bills and directly held equity securities, which are valued at the closing price reported in the active market in which the securities are traded. Level 2 items include fixed income securities consisting of corporate and government bonds, which are valued at the closing price reported in the active market for similar assets in which the individual securities are traded or based on yields currently available on comparable securities of issuers with similar credit ratings. Certain investments that are measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. These fair value amounts are included in the tables below to reconcile the fair value hierarchy to the respective total plan assets.

At December 31, the fair values of qualified and non-qualified defined benefit pension plan assets were as follows (in millions):



	2018									2017
	Fair			Level		Level		Level		Fair			Level		Level		Level
Alliant Energy	Value			1		2		3		Value			1		2		3
Cash and equivalents		$36.4			$3.0		$33.4		$—		$28.2			$4.5		$23.7		$—
Equity securities - U.S.	130.2			130.2		—		—		158.3			158.3		—		—
Equity securities - international	116.0			116.0		—		—		137.5			137.5		—		—
Global asset securities	42.1			42.1		—		—		49.4			49.4		—		—
Fixed income securities	127.8			52.5		75.3		—		135.9			55.8		80.1		—
Total assets in fair value hierarchy	452.5				$343.8		$108.7		$—	509.3				$405.5		$103.8		$—
Assets measured at net asset value	355.4									441.1
Accrued investment income	1.2									1.0
Due to brokers, net (pending trades with brokers)	(0.5		)							(0.7		)
Total pension plan assets		$808.6									$950.7



	2018									2017
	Fair			Level		Level		Level		Fair			Level		Level		Level
IPL	Value			1		2		3		Value			1		2		3
Cash and equivalents		$17.0			$1.4		$15.6		$—		$13.2			$2.2		$11.0		$—
Equity securities - U.S.	60.8			60.8		—		—		73.9			73.9		—		—
Equity securities - international	54.2			54.2		—		—		64.2			64.2		—		—
Global asset securities	19.7			19.7		—		—		23.0			23.0		—		—
Fixed income securities	59.7			24.5		35.2		—		63.4			26.0		37.4		—
Total assets in fair value hierarchy	211.4				$160.6		$50.8		$—	237.7				$189.3		$48.4		$—
Assets measured at net asset value	166.1									205.8
Accrued investment income	0.6									0.5
Due to brokers, net (pending trades with brokers)	(0.3		)							(0.3		)
Total pension plan assets		$377.8									$443.7



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	2018									2017
	Fair			Level		Level		Level		Fair			Level		Level		Level
WPL	Value			1		2		3		Value			1		2		3
Cash and equivalents		$15.9			$1.3		$14.6		$—		$12.3			$2.0		$10.3		$—
Equity securities - U.S.	56.7			56.7		—		—		69.1			69.1		—		—
Equity securities - international	50.5			50.5		—		—		60.0			60.0		—		—
Global asset securities	18.4			18.4		—		—		21.6			21.6		—		—
Fixed income securities	55.6			22.8		32.8		—		59.3			24.3		35.0		—
Total assets in fair value hierarchy	197.1				$149.7		$47.4		$—	222.3				$177.0		$45.3		$—
Assets measured at net asset value	154.8									192.5
Accrued investment income	0.5									0.5
Due to brokers, net (pending trades with brokers)	(0.2		)							(0.3		)
Total pension plan assets		$352.2									$415.0

At December 31, the fair values of OPEB plan assets were as follows (in millions):



	2018								2017
	Fair		Level		Level		Level		Fair		Level		Level		Level
Alliant Energy	Value		1		2		3		Value		1		2		3
Cash and equivalents		$1.4		$1.1		$0.3		$—		$1.2		$0.7		$0.5		$—
Equity securities - U.S.	3.9		3.9		—		—		27.9		27.9		—		—
Equity securities - international	2.9		2.9		—		—		11.4		11.4		—		—
Global asset securities	0.4		0.4		—		—		0.4		0.4		—		—
Fixed income securities	68.2		67.5		0.7		—		66.6		66.0		0.6		—
Total assets in fair value hierarchy	76.8			$75.8		$1.0		$—	107.5			$106.4		$1.1		$—
Assets measured at net asset value	22.3								3.6
Total OPEB plan assets		$99.1								$111.1



	2018								2017
	Fair		Level		Level		Level		Fair		Level		Level		Level
IPL	Value		1		2		3		Value		1		2		3
Cash and equivalents		$0.7		$0.7		$—		$—		$0.3		$0.3		$—		$—
Equity securities - U.S.	—		—		—		—		22.3		22.3		—		—
Equity securities - international	—		—		—		—		7.5		7.5		—		—
Fixed income securities	47.0		47.0		—		—		42.8		42.8		—		—
Total assets in fair value hierarchy	47.7			$47.7		$—		$—	72.9			$72.9		$—		$—
Assets measured at net asset value	19.0								—
Total OPEB plan assets		$66.7								$72.9



	2018								2017
	Fair		Level		Level		Level		Fair		Level		Level		Level
WPL	Value		1		2		3		Value		1		2		3
Cash and equivalents		$0.1		$0.1		$—		$—		$0.6		$0.3		$0.3		$—
Fixed income securities	16.6		16.6		—		—		18.1		18.1		—		—
Total OPEB plan assets		$16.7		$16.7		$—		$—		$18.7		$18.4		$0.3		$—

For the various defined benefit pension and OPEB plans, Alliant Energy common stock represented less than 1% of assets directly held in the plans at December 31, 2018 and 2017.

401(k) Savings Plans - A significant number of employees participate in defined contribution retirement plans (401(k) savings plans). Alliant Energy common stock directly held by participants represented 11.5% and 11.5% of total assets in the 401(k) savings plans at December 31, 2018 and 2017, respectively. Costs related to the 401(k) savings plans, which are partially based on the participants’ contributions and include allocated costs associated with Corporate Services employees for IPL and WPL, were as follows (in millions):



	Alliant Energy						IPL						WPL
	2018		2017		2016		2018		2017		2016		2018		2017		2016
401(k) costs		$25.1		$24.8		$23.6		$13.0		$12.8		$12.0		$11.2		$11.1		$10.7



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NOTE 13(b) Equity-based Compensation Plans - In 2015, Alliant Energy’s shareowners approved the Amended and Restated OIP, which permits the grant of shares of Alliant Energy common stock, restricted stock, restricted stock units, performance shares, performance units, and other stock-based or cash-based awards to key employees. At December 31, 2018, performance shares and restricted stock units (performance- and time-vesting) were outstanding under the Amended and Restated OIP, and 6.8 million shares of Alliant Energy’s common stock remained available for grants under the Amended and Restated OIP. Alliant Energy satisfies share payouts related to equity awards under the Amended and Restated OIP through the issuance of new shares of its common stock. Alliant Energy also has the DLIP, which permits the grant of cash-based long-term awards, including performance units, restricted cash awards and restricted units, to certain key employees. At December 31, 2018, performance units and restricted units (performance- and time-vesting) were outstanding under the DLIP, and the the amount of nonvested restricted units was not material. There is no limit to the number of grants that can be made under the DLIP and Alliant Energy satisfies all payouts under the DLIP through cash payments. Nonvested awards generally do not have non-forfeitable rights to dividends or dividend equivalents when dividends are paid to common shareowners. A summary of compensation expense, including amounts allocated to IPL and WPL, and the related income tax benefits recognized for share-based compensation awards was as follows (in millions):



	Alliant Energy						IPL						WPL
	2018		2017		2016		2018		2017		2016		2018		2017		2016
Compensation expense		$17.0		$15.1		$18.0		$9.4		$8.3		$9.5		$6.9		$6.4		$7.9
Income tax benefits	4.9		6.2		7.4		2.8		3.4		4.0		1.9		2.6		3.2

As of December 31, 2018, Alliant Energy’s, IPL’s and WPL’s total unrecognized compensation cost related to share-based compensation awards was $4.9 million, $2.7 million and $2.1 million, respectively, which is expected to be recognized over a weighted average period of between one and two years. Share-based compensation expense is recognized on a straight-line basis over the requisite service periods and is primarily recorded in “Other operation and maintenance” in the income statements.

Performance Shares and Performance Units - Payouts of performance shares under the Amended and Restated OIP and performance units under the DLIP to key employees are contingent upon achievement over three-year periods of specified performance criteria, which currently include metrics of total shareowner return relative to an investor-owned utility peer group. Performance shares can be paid out in shares of Alliant Energy’s common stock, cash or a combination of cash and stock. Performance units must be paid out in cash. Alliant Energy assumes it will make future payouts of its performance shares and performance units in cash; therefore, performance shares and performance units are accounted for as liability awards. A summary of the performance shares and performance units activity, with amounts representing the target number of awards, was as follows:



	Performance Shares						Performance Units
	2018		2017		2016		2018		2017		2016
Nonvested awards, January 1	223,511		257,599		288,430		71,737		93,320		116,412
Granted	74,163		65,350		68,585		19,840		21,558		23,918
Vested	(90,806	)	(99,438	)	(98,186	)	(31,910	)	(37,395	)	(42,760	)
Forfeited	(3,680	)	—		(1,230	)	(1,906	)	(5,746	)	(4,250	)
Nonvested awards, December 31	203,188		223,511		257,599		57,761		71,737		93,320

Granted Awards - Each performance share’s and performance unit’s value is based on the closing market price of one share of Alliant Energy’s common stock at the end of the performance period. The actual payout for performance shares and performance units is dependent upon actual performance and may range from zero to 200% of the target number of awards. Compensation expense for performance shares and performance units is recorded ratably over the performance period based on the fair value of the awards at each reporting period.

Vested Awards - Certain performance shares and performance units vested, resulting in payouts (a combination of cash and common stock for the performance shares and cash only for the performance units) as follows:



	Performance Shares			Performance Units
	2018	2017	2016	2018	2017	2016
	2015 Grant	2014 Grant	2013 Grant	2015 Grant	2014 Grant	2013 Grant
Performance awards vested	90,806	99,438	98,186	31,910	37,395	42,760
Percentage of target number of performance awards	137.5%	147.5%	165.0%	137.5%	147.5%	165.0%
Aggregate payout value (in millions)	$5.3	$5.6	$5.1	$1.4	$1.5	$1.7
Payout - cash (in millions)	$4.9	$5.1	$2.9	$1.4	$1.5	$1.7
Payout - common stock shares issued	5,078	5,185	22,408	N/A	N/A	N/A



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Fair Value of Awards - At December 31, 2018, Alliant Energy’s common stock closing price was $42.25. Additional information related to fair values of nonvested performance shares and performance units at December 31, 2018, by year of grant, was as follows:



	Performance Shares									Performance Units
	2018 Grant			2017 Grant			2016 Grant			2018 Grant			2017 Grant			2016 Grant
Nonvested awards at target	70,483			65,350			67,355			19,196			18,062			20,503
Estimated payout percentage based on performance criteria	85		%	85		%	143		%	85		%	85		%	143		%
Fair values of each nonvested award		$35.91			$35.91			$60.42			$35.91			$35.91			$60.42

Performance Restricted Stock Units - Payouts of performance restricted stock units under the Amended and Restated OIP are based on the achievement of certain performance targets (currently specified growth of consolidated net income from continuing operations) during a three-year performance period. The actual number of units that will be paid out upon vesting is dependent upon actual performance and may range from zero to 200% of the target number of units. If performance targets are not met during the performance period, these units are forfeited. Performance restricted stock units generally must be paid out in shares and are accounted for as equity awards. Each performance restricted stock unit’s value is based on the closing market price of one share of Alliant Energy’s common stock on the grant date of the award. Compensation expense is recorded ratably over the performance period based on a probability assessment of payouts for the awards at each reporting period. A summary of the performance restricted stock units activity, with amounts representing the target number of units, was as follows:



	2018				2017			2016
	Units		Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Nonvested units, January 1	132,705			$36.50	67,355		$33.96	—			$—
Granted	74,163		38.60		65,350	39.12		68,585		33.96
Forfeited	(3,680	)	38.60		—	—		(1,230	)	33.90
Nonvested units, December 31	203,188		37.23		132,705	36.50		67,355		33.96

Restricted Stock Units - Payouts of restricted stock units under the Amended and Restated OIP are based on the expiration of a three-year time-vesting period. Each restricted stock unit’s value is based on the closing market price of one share of Alliant Energy’s common stock at the end of the time-vesting period. Compensation expense is recorded ratably over the performance period based on the fair value of the awards at each reporting period. Restricted stock units can be paid out in shares of Alliant Energy common stock, cash or a combination of cash and stock. Alliant Energy assumes it will make future payouts of its restricted stock units in cash; therefore, restricted stock units are accounted for as liability awards. A summary of the restricted stock units activity was as follows:



	2018		2017	2016
Nonvested units, January 1	113,749		57,736	—
Granted	63,568		56,013	58,790
Forfeited	(3,154	)	—	(1,054	)
Nonvested units, December 31	174,163		113,749	57,736

NOTE 13(c) Deferred Compensation Plan - Alliant Energy maintains a DCP under which key employees may defer up to 100% of base salary and short-term cash incentive compensation and directors may elect to defer all or part of their retainer and committee fees. Key employees who have made the maximum allowed contribution to the Alliant Energy 401(k) Savings Plan may receive an additional credit to the DCP. Key employees and directors may elect to have their deferrals credited to a company stock account, an interest account, equity accounts or mutual fund accounts based on certain benchmark funds.

Company Stock Account - The DCP does not permit diversification of deferrals credited to the company stock account and all distributions from participants’ company stock accounts are made in the form of shares of Alliant Energy common stock. The deferred compensation obligations for participants’ company stock accounts are recorded in “Additional paid-in capital” and the shares of Alliant Energy common stock held in a rabbi trust to satisfy this obligation are recorded in “Shares in deferred compensation trust” on Alliant Energy’s balance sheets. At December 31, the carrying value of the deferred compensation obligation for the company stock account and the shares in the deferred compensation trust based on the



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historical value of the shares of Alliant Energy common stock contributed to the rabbi trust, and the fair market value of the shares held in the rabbi trust, were as follows (in millions):



	2018		2017
Carrying value		$9.8		$11.1
Fair market value	16.2		19.7

Interest, Equity and Mutual Fund Accounts - Distributions from participants’ interest, equity and mutual fund accounts are in the form of cash payments. The deferred compensation obligations for participants’ interest, equity and mutual fund accounts are recorded in “Pension and other benefit obligations” on the balance sheets. At December 31, 2018 and 2017, the carrying value of Alliant Energy’s deferred compensation obligations for participants’ interest, equity and mutual fund accounts, which approximates fair market value, was $21.0 million and $21.8 million, respectively.

NOTE 14. ASSET RETIREMENT OBLIGATIONS

Recognized AROs relate to legal obligations for the removal, closure or dismantlement of several assets including, but not limited to, wind farms, ash ponds, active ash landfills, solar generation and above ground storage tanks. Recognized AROs also include legal obligations for the management and final disposition of asbestos and polychlorinated biphenyls. AROs are recorded in “Other current liabilities” and “Other liabilities” on the balance sheets. Refer to Note 2 for information regarding regulatory assets related to AROs. A reconciliation of the changes in AROs associated with long-lived assets is as follows (in millions):



	Alliant Energy						IPL						WPL
	2018			2017			2018			2017			2018			2017
Balance, January 1		$184.5			$195.7			$134.1			$124.7			$50.4			$61.4
Revisions in estimated cash flows	(10.1		)	4.3			(10.1		)	7.0			—			(2.7		)
Liabilities settled	(10.4		)	(23.5		)	(9.7		)	(13.1		)	(0.7		)	(10.4		)
Liabilities incurred	7.3			2.0			—			11.7			7.3			—
Accretion expense	6.2			6.0			4.0			3.8			2.2			2.1
Balance, December 31		$177.5			$184.5			$118.3			$134.1			$59.2			$50.4

NOTE 15. DERIVATIVE INSTRUMENTS

Commodity Derivatives -

Purpose - Derivative instruments are used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices, transmission congestion costs and rail transportation costs. Risk policies are maintained that govern the use of such derivative instruments. Derivative instruments were not designated as hedging instruments and included the following:



Risk management purpose	Type of instrument
Mitigate pricing volatility for:
Fuel used to supply natural gas-fired EGUs	Natural gas swap, options and physical forward contracts (IPL and WPL)
Natural gas supplied to retail customers	Natural gas swap, options and physical forward contracts (IPL and WPL)
Fuel used at coal-fired EGUs	Coal physical forward contracts (IPL and WPL)
Optimize the value of natural gas pipeline capacity	Natural gas physical forward contracts (IPL and WPL)
	Natural gas swap contracts (IPL)
Manage transmission congestion costs	FTRs (IPL and WPL)
Manage rail transportation costs	Diesel fuel swap contracts (WPL)

Notional Amounts - As of December 31, 2018, gross notional amounts and settlement/delivery years related to outstanding swap contracts, option contracts, physical forward contracts and FTRs that were accounted for as commodity derivative instruments were as follows (units in thousands):



	FTRs		Natural Gas		Coal		Diesel Fuel
	MWhs	Years	Dths	Years	Tons	Years	Gallons	Years
Alliant Energy	10,399	2019	181,694	2019-2026	10,467	2019-2021	3,024	2019
IPL	5,954	2019	80,150	2019-2026	4,410	2019-2021	—
WPL	4,445	2019	101,544	2019-2026	6,057	2019-2021	3,024	2019



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Financial Statement Presentation - Derivative instruments are recorded at fair value each reporting date on the balance sheet as assets or liabilities. At December 31, the fair values of current derivative assets are included in “Other current assets,” non-current derivative assets are included in “Deferred charges and other,” current derivative liabilities are included in “Other current liabilities” and non-current derivative liabilities are included in “Other liabilities” on the balance sheets as follows (in millions):



	Alliant Energy				IPL				WPL
	2018		2017		2018		2017		2018		2017
Current derivative assets		$24.6		$21.1		$16.1		$15.8		$8.5		$5.3
Non-current derivative assets	3.7		4.0		1.6		1.3		2.1		2.7
Current derivative liabilities	5.6		18.7		3.1		5.0		2.5		13.7
Non-current derivative liabilities	17.7		23.0		8.1		14.4		9.6		8.6

Credit Risk-related Contingent Features - Various agreements contain credit risk-related contingent features, including requirements to maintain certain credit ratings and/or limitations on liability positions under the agreements based on credit ratings. Certain of these agreements with credit risk-related contingency features are accounted for as derivative instruments. In the event of a material change in creditworthiness or if liability positions exceed certain contractual limits, credit support may need to be provided in the form of letters of credit or cash collateral up to the amount of exposure under the contracts, or the contracts may need to be unwound and underlying liability positions paid. At December 31, 2018 and 2017, the aggregate fair value of all derivative instruments with credit risk-related contingent features in a net liability position was not materially different than amounts that would be required to be posted as credit support to counterparties by Alliant Energy, IPL or WPL if the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered.

Balance Sheet Offsetting - The fair value amounts of derivative instruments subject to a master netting arrangement are not netted by counterparty on the balance sheets. However, if the fair value amounts of derivative instruments by counterparty were netted, amounts would not be materially different from gross amounts of derivative assets and derivative liabilities at December 31, 2018 and 2017. Fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) are not offset against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement.

NOTE 16. FAIR VALUE MEASUREMENTS

Valuation Hierarchy - Fair value measurement accounting establishes three levels of fair value hierarchy that prioritize the inputs to valuation techniques used to measure fair value. Level 1 pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 pricing inputs are quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active as of the reporting date. Level 3 pricing inputs are unobservable inputs for assets or liabilities for which little or no market data exist and require significant management judgment or estimation.

The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.

Valuation Techniques -

Derivative assets and derivative liabilities - Swap, option and physical forward commodity contracts were non-exchange-based derivative instruments and were valued using indicative price quotations from a pricing vendor that provides daily exchange forward price settlements, from broker or dealer quotations, from market publications or from on-line exchanges. The indicative price quotations reflected the average of the bid-ask mid-point prices and were obtained from sources believed to provide the most liquid market for the commodity. A portion of these indicative price quotations were corroborated using quoted prices for similar assets or liabilities in active markets and categorized derivative instruments based on such indicative price quotations as Level 2. Commodity contracts that were valued using indicative price quotations based on significant assumptions such as seasonal or monthly shaping and indicative price quotations that could not be readily corroborated were categorized as Level 3. Swap, option and physical forward commodity contracts were predominately at liquid trading points. FTRs were valued using auction prices and were categorized as Level 3. Refer to Note 15 for additional details of derivative assets and derivative liabilities.



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Deferred proceeds (sales of receivables) - The fair value of IPL’s deferred proceeds related to its sales of accounts receivable program was calculated each reporting date using the cost approach valuation technique. The fair value represents the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash amounts received from the receivables sold due to the short-term nature of the collection period. These inputs were considered unobservable and deferred proceeds were categorized as Level 3. Deferred proceeds represent IPL’s maximum exposure to loss related to the receivables sold. Refer to Note 5(b) for additional information regarding deferred proceeds.

Long-term debt (including current maturities) - The fair value of long-term debt instruments was based on a discounted cash flow methodology using observable data from comparably traded securities with similar credit profiles, and was substantially classified as Level 2. Refer to Note 9(b) for additional information regarding long-term debt.

Fair Value of Financial Instruments - The carrying amounts of current assets and current liabilities approximate fair value because of the short maturity of such financial instruments. Carrying amounts and the related estimated fair values of other financial instruments at December 31 were as follows (in millions):



Alliant Energy	2018										2017
			Fair Value										Fair Value
	Carrying		Level		Level		Level				Carrying		Level		Level		Level
	Amount		1		2		3		Total		Amount		1		2		3		Total
Assets:
Derivatives		$28.3		$—		$8.9		$19.4		$28.3		$25.1		$—		$4.1		$21.0		$25.1
Deferred proceeds	119.4		—		—		119.4		119.4		222.1		—		—		222.1		222.1
Liabilities and equity:
Derivatives	23.3		—		16.1		7.2		23.3		41.7		—		8.5		33.2		41.7
Long-term debt (incl. current maturities)	5,502.8		—		5,858.4		2.4		5,860.8		4,866.3		—		5,444.6		2.9		5,447.5



IPL	2018										2017
			Fair Value										Fair Value
	Carrying		Level		Level		Level				Carrying		Level		Level		Level
	Amount		1		2		3		Total		Amount		1		2		3		Total
Assets:
Derivatives		$17.7		$—		$4.0		$13.7		$17.7		$17.1		$—		$2.0		$15.1		$17.1
Deferred proceeds	119.4		—		—		119.4		119.4		222.1		—		—		222.1		222.1
Liabilities and equity:
Derivatives	11.2		—		6.5		4.7		11.2		19.4		—		2.9		16.5		19.4
Long-term debt (incl. current maturities)	2,552.3		—		2,691.2		—		2,691.2		2,406.0		—		2,665.7		—		2,665.7



WPL	2018										2017
			Fair Value										Fair Value
	Carrying		Level		Level		Level				Carrying		Level		Level		Level
	Amount		1		2		3		Total		Amount		1		2		3		Total
Assets:
Derivatives		$10.6		$—		$4.9		$5.7		$10.6		$8.0		$—		$2.1		$5.9		$8.0
Liabilities and equity:
Derivatives	12.1		—		9.6		2.5		12.1		22.3		—		5.6		16.7		22.3
Long-term debt (incl. current maturities)	1,834.9		—		2,043.7		—		2,043.7		1,833.4		—		2,147.9		—		2,147.9



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Information for fair value measurements using significant unobservable inputs (Level 3 inputs) was as follows (in millions):



Alliant Energy	Commodity Contract Derivative
	Assets and (Liabilities), net						Deferred Proceeds
	2018			2017			2018			2017
Beginning balance, January 1		($12.2	)		$8.7			$222.1			$211.1
Total net gains (losses) included in changes in net assets (realized/unrealized)	9.1			(32.9		)	—			—
Transfers out of Level 3 (a)	16.1			12.2			—			—
Purchases	26.7			28.3			—			—
Sales	(0.5		)	(0.3		)	—			—
Settlements (b)	(27.0		)	(28.2		)	(102.7		)	11.0
Ending balance, December 31		$12.2			($12.2	)		$119.4			$222.1
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at December 31		$10.7			($31.0	)		$—			$—



IPL	Commodity Contract Derivative
	Assets and (Liabilities), net						Deferred Proceeds
	2018			2017			2018			2017
Beginning balance, January 1		($1.4	)		$10.1			$222.1			$211.1
Total net losses included in changes in net assets (realized/unrealized)	(0.5		)	(14.8		)	—			—
Transfers out of Level 3 (a)	11.0			3.1			—			—
Purchases	22.5			24.6			—			—
Sales	(0.4		)	(0.2		)	—			—
Settlements (b)	(22.2		)	(24.2		)	(102.7		)	11.0
Ending balance, December 31		$9.0			($1.4	)		$119.4			$222.1
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at December 31		$0.2			($13.5	)		$—			$—



WPL	Commodity Contract Derivative
	Assets and (Liabilities), net
	2018			2017
Beginning balance, January 1		($10.8	)		($1.4	)
Total net gains (losses) included in changes in net assets (realized/unrealized)	9.6			(18.1		)
Transfers out of Level 3 (a)	5.1			9.1
Purchases	4.2			3.7
Sales	(0.1		)	(0.1		)
Settlements	(4.8		)	(4.0		)
Ending balance, December 31		$3.2			($10.8	)
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at December 31		$10.5			($17.5	)


(a)	Observable market inputs became available for certain commodity contracts previously classified as Level 3 for transfers out of Level 3.


(b)	Settlements related to deferred proceeds are due to the change in the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash amounts received from the receivables sold.

Commodity Contracts - The fair value of electric, FTR and natural gas commodity contracts categorized as Level 3 was recognized as net derivative assets (liabilities) at December 31 as follows (in millions):



	Alliant Energy					IPL					WPL
	Excluding FTRs			FTRs		Excluding FTRs			FTRs		Excluding FTRs			FTRs
2018		$3.2			$9.0		$1.8			$7.2		$1.4			$1.8
2017	(23.5		)	11.3		(11.5		)	10.1		(12.0		)	1.2



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NOTE 17. COMMITMENTS AND CONTINGENCIES

NOTE 17(a) Capital Purchase Commitments - Various contractual obligations contain minimum future commitments related to capital expenditures for certain construction projects. IPL’s projects include the expansion of wind generation. WPL’s projects include West Riverside. At December 31, 2018, Alliant Energy’s, IPL’s and WPL’s minimum future commitments for these projects were $40 million, $14 million and $26 million, respectively.

NOTE 17(b) Other Purchase Commitments - Various commodity supply, transportation and storage contracts help meet obligations to provide electricity and natural gas to utility customers. In addition, there are various purchase commitments associated with other goods and services. At December 31, 2018, the related minimum future commitments were as follows (in millions):



Alliant Energy	2019		2020		2021		2022		2023		Thereafter		Total
Purchased power (a)		$159		$135		$149		$140		$155		$307		$1,045
Natural gas	254		151		119		94		67		196		881
Coal (b)	102		49		26		9		9		—		195
Other (c)	60		4		3		2		2		—		71
		$575		$339		$297		$245		$233		$503		$2,192



IPL	2019		2020		2021		2022		2023		Thereafter		Total
Purchased power (a)		$144		$135		$149		$140		$155		$307		$1,030
Natural gas	124		55		42		33		26		83		363
Coal (b)	52		29		20		9		9		—		119
Other (c)	24		3		3		2		2		—		34
		$344		$222		$214		$184		$192		$390		$1,546



WPL	2019		2020		2021		2022		2023		Thereafter		Total
Purchased power		$15		$—		$—		$—		$—		$—		$15
Natural gas	130		96		77		61		41		113		518
Coal (b)	50		20		6		—		—		—		76
Other (c)	23		—		—		—		—		—		23
		$218		$116		$83		$61		$41		$113		$632

(a)

Includes payments required by PPAs for capacity rights and minimum quantities of MWhs required to be purchased. In July 2018, IPL entered into an amendment to shorten the term of the DAEC PPA by five years in exchange for a $110 million buyout payment by IPL in September 2020, subject to IUB approval. In December 2018, IPL received an order from the IUB, which was effective in January 2019, approving recovery of the buyout payment. As a result, Alliant Energy’s and IPL’s amounts in the above table do not include the September 2020 buyout payment, and the minimum future commitments reflect IPL’s purchase of capacity and the resulting energy from DAEC through December 2025, the original term of the PPA prior to the amendment. Amounts in the above table for 2021 and beyond relate to the DAEC PPA.


(b)	Corporate Services entered into system-wide coal contracts on behalf of IPL and WPL that include minimum future commitments. These commitments were assigned to IPL and WPL based on information available as of December 31, 2018 regarding expected future usage, which is subject to change.


(c)	Includes individual commitments incurred during the normal course of business that exceeded $1 million at December 31, 2018.

NOTE 17(c) Legal Proceedings - Alliant Energy, IPL and WPL are involved in legal and administrative proceedings before various courts and agencies with respect to matters arising in the ordinary course of business. Although unable to predict the outcome of these matters, Alliant Energy, IPL and WPL believe that appropriate reserves have been established and final disposition of these actions will not have a material effect on their financial condition or results of operations.

NOTE 17(d) Guarantees and Indemnifications -

Whiting Petroleum - In 2004, Alliant Energy sold its remaining interest in Whiting Petroleum. Whiting Petroleum is an independent oil and gas company. Alliant Energy Resources, LLC, as the successor to a predecessor entity that owned Whiting Petroleum, and a wholly-owned subsidiary of AEF, continues to guarantee the partnership obligations of an affiliate of Whiting Petroleum under general partnership agreements in the oil and gas industry, including with respect to the future abandonment of certain platforms off the coast of California and related onshore plant and equipment owned by the partnerships. The guarantees do not include a maximum limit. As of December 31, 2018, the present value of the abandonment obligations is estimated at $36 million. Alliant Energy is not aware of any material liabilities related to these



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guarantees of which it is probable that Alliant Energy Resources, LLC will be obligated to pay and therefore has not recognized any material liabilities related to this guarantee as of December 31, 2018 and 2017.

Non-utility Wind Farm in Oklahoma - In July 2017, a wholly-owned subsidiary of AEF acquired a cash equity ownership interest in a non-utility wind farm located in Oklahoma. The wind farm provides electricity to a third-party under a long-term PPA. Alliant Energy provided a parent guarantee of its subsidiary’s indemnification obligations under the related operating agreement and PPA. Alliant Energy’s obligations under the operating agreement were $90 million as of December 31, 2018 and will reduce annually until expiring in July 2047. Alliant Energy’s obligations under the PPA are subject to a maximum limit of $17 million and expire in December 2031, subject to potential extension. Alliant Energy is not aware of any material liabilities related to this guarantee that it is probable that it will be obligated to pay and therefore has not recognized any material liabilities related to this guarantee as of December 31, 2018 and 2017.

IPL’s Minnesota Electric Distribution Assets - IPL provided indemnifications associated with the July 2015 sale of its Minnesota electric distribution assets for losses resulting from potential breach of IPL’s representations, warranties and obligations under the sale agreement. Alliant Energy and IPL believe the likelihood of having to make any material cash payments under these indemnifications is remote. IPL has not recorded any material liabilities related to these indemnifications as of December 31, 2018 and 2017. The general terms of the indemnifications provided by IPL included a maximum limit of $17 million and expire in October 2020.

NOTE 17(e) Environmental Matters - Alliant Energy, IPL and WPL are subject to environmental regulations as a result of their current and past operations. These regulations are designed to protect public health and the environment and have resulted in compliance, remediation, containment and monitoring obligations, which are recorded as current and non-current environmental liabilities. Substantially all of the environmental liabilities recorded on the balance sheets relate to MGP sites.

MGP Sites - IPL and WPL have current or previous ownership interests in various sites that are previously associated with the production of gas for which IPL and WPL have, or may have in the future, liability for investigation, remediation and monitoring costs. IPL and WPL are working pursuant to the requirements of various federal and state agencies to investigate, mitigate, prevent and remediate, where necessary, the environmental impacts to property, including natural resources, at and around these former MGP sites in order to protect public health and the environment. At December 31, 2018, estimated future costs expected to be incurred for the investigation, remediation and monitoring of the MGP sites, as well as environmental liabilities recorded on the balance sheets for these sites, which are not discounted, were as follows (in millions). At December 31, 2018, such amounts for WPL were not material.



	Alliant Energy				IPL
Range of estimated future costs		$11	-	$29		$8	-	$24
Current and non-current environmental liabilities	15				12

IPL Consent Decree - In 2015, the U.S. District Court for the Northern District of Iowa approved a Consent Decree that IPL entered into with the EPA, the Sierra Club, the State of Iowa and Linn County in Iowa, thereby resolving potential CAA issues associated with emissions from IPL’s coal-fired generating facilities in Iowa. IPL has completed various requirements under the Consent Decree. IPL’s remaining requirements include installing an SCR system or equivalent NOx reduction system at Ottumwa by December 31, 2019, and fuel switching or retiring Burlington by December 31, 2021 and Prairie Creek Units 1 and 3 by December 31, 2025. Alliant Energy and IPL currently expect to recover material costs incurred by IPL related to compliance with the terms of the Consent Decree from IPL’s electric customers.

Other Environmental Contingencies - In addition to the environmental liabilities discussed above, various environmental rules are monitored that may have a significant impact on future operations. Several of these environmental rules are subject to legal challenges, reconsideration and/or other uncertainties. Given uncertainties regarding the outcome, timing and compliance plans for these environmental matters, the complete financial impact of each of these rules is not able to be determined; however future capital investments and/or modifications to EGUs to comply with certain of these rules could be significant. Specific current, proposed or potential environmental matters include, among others: Effluent Limitation Guidelines, CCR Rule, and various legislation and EPA regulations to monitor and regulate the emission of GHG, including the CAA.

NOTE 17(f) Credit Risk - IPL provides retail electric and gas services in Iowa and wholesale electric service in Minnesota, Illinois and Iowa. WPL provides retail electric and gas services and wholesale electric service in Wisconsin. The geographic concentration of IPL’s and WPL’s customers did not contribute significantly to overall credit risk exposure. In addition, as a result of a diverse customer base, IPL and WPL did not have any significant credit risk concentration for receivables arising from the sale of electricity or gas services.



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Alliant Energy, IPL and WPL are subject to credit risk related to the ability of counterparties to meet their contractual payment obligations or the potential non-performance of counterparties to deliver contracted commodities and other goods or services at the contracted price. Credit policies are maintained to mitigate credit risk. These credit policies include evaluation of the financial condition of certain counterparties, use of credit risk-related contingent provisions in certain agreements that require credit support from counterparties not meeting specific criteria, diversification of counterparties to reduce concentrations of credit risk and the use of standardized agreements that facilitate the netting of cash flows associated with certain counterparties. Based on these credit policies and counterparty diversification, as well as utility cost recovery mechanisms, it is unlikely that counterparty non-performance would have a material effect on financial condition or results of operations. However, there is no assurance that these items will protect against all losses from counterparty non-performance.

Refer to Notes 5(a) and 15 for details of allowances for doubtful accounts and credit risk-related contingent features, respectively.

NOTE 17(g) Collective Bargaining Agreements - At December 31, 2018, employees covered by collective bargaining agreements represented 55%, 63% and 82% of total employees of Alliant Energy, IPL and WPL, respectively. In May 2019, WPL’s collective bargaining agreement with International Brotherhood of Electrical Workers Local 965 expires, representing 26% and 82% of total employees of Alliant Energy and WPL, respectively.

NOTE 18. SEGMENTS OF BUSINESS

Alliant Energy - Alliant Energy’s principal businesses as of December 31, 2018 are:

•

Utility - includes the operations of IPL and WPL, which primarily serve retail customers in Iowa and Wisconsin. The utility business has three reportable segments: a) utility electric operations; b) utility gas operations; and c) utility other, which includes steam operations and the unallocated portions of the utility business. Various line items in the following tables are not allocated to the electric and gas segments for management reporting purposes, and therefore, are included only in “Total Utility.”


•	ATC Holdings, Non-utility, Parent and Other - includes the operations of AEF and its subsidiaries, Corporate Services, the Alliant Energy parent company, and any Alliant Energy parent company consolidating adjustments. AEF is comprised of Alliant Energy’s interest in ATC Holdings, Transportation, a non-utility wind farm, the Sheboygan Falls Energy Facility and other non-utility holdings.

Alliant Energy’s administrative support services are directly charged to the applicable segment where practicable. In all other cases, administrative support services are allocated to the applicable segment based on services agreements. Intersegment revenues were not material to Alliant Energy’s operations and there was no single customer whose revenues were 10% or more of Alliant Energy’s consolidated revenues. All of Alliant Energy’s operations and assets are located in the U.S. Certain financial information relating to Alliant Energy’s business segments, which represent the services provided to its customers, was as follows (in millions):



											ATC Holdings,
	Utility										Non-utility,			Alliant Energy
2018	Electric			Gas		Other		Total			Parent and Other			Consolidated
Revenues		$3,000.3			$446.6		$48.0		$3,494.9			$39.6			$3,534.5
Depreciation and amortization	457.3			42.0		3.6		502.9			4.0			506.9
Operating income	610.2			53.2		0.3		663.7			30.7			694.4
Interest expense								217.2			29.8			247.0
Equity income from unconsolidated investments, net	(0.9		)	—		—		(0.9		)	(53.7		)	(54.6		)
Income taxes								33.0			14.7			47.7
Net income attributable to Alliant Energy common shareowners								472.1			40.0			512.1
Total assets	12,486.3			1,184.4		893.2		14,563.9			862.1			15,426.0
Investments in equity method subsidiaries	8.1			—		—		8.1			413.2			421.3
Construction and acquisition expenditures	1,421.1			146.8		0.4		1,568.3			65.6			1,633.9



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												ATC Holdings,
	Utility											Non-utility,			Alliant Energy
2017	Electric			Gas		Other			Total			Parent and Other			Consolidated
Revenues		$2,894.7			$400.9		$47.5			$3,343.1			$39.1			$3,382.2
Depreciation and amortization	412.0			38.2		7.7			457.9			3.9			461.8
Operating income (loss)	601.7			47.7		(11.6		)	637.8			33.4			671.2
Interest expense									206.2			9.4			215.6
Equity income from unconsolidated investments, net	(0.7		)	—		—			(0.7		)	(44.1		)	(44.8		)
Income taxes									51.0			15.7			66.7
Net income attributable to Alliant Energy common shareowners									403.4			53.9			457.3
Total assets	11,396.2			1,199.8		766.5			13,362.5			825.3			14,187.8
Investments in equity method subsidiaries	8.3			—		—			8.3			373.1			381.4
Construction and acquisition expenditures	1,154.9			125.2		1.7			1,281.8			185.1			1,466.9



												ATC Holdings,
	Utility											Non-utility,			Alliant Energy
2016	Electric			Gas		Other			Total			Parent and Other			Consolidated
Revenues		$2,875.5			$355.4		$48.6			$3,279.5			$40.5			$3,320.0
Depreciation and amortization	367.0			34.2		2.1			403.3			8.3			411.6
Operating income (loss)	586.5			33.0		(4.7		)	614.8			(60.7		)	554.1
Interest expense									194.6			1.6			196.2
Equity income from unconsolidated investments, net	(0.7		)	—		—			(0.7		)	(38.9		)	(39.6		)
Income tax expense (benefit)									71.4			(12.0		)	59.4
Net income (loss) attributable to Alliant Energy common shareowners									385.2			(13.7		)	371.5
Total assets	10,722.9			1,091.1		781.0			12,595.0			778.8			13,373.8
Investments in equity method subsidiaries	7.7			—		—			7.7			318.3			326.0
Construction and acquisition expenditures	994.0			137.1		0.1			1,131.2			65.6			1,196.8

IPL - IPL is a utility primarily serving retail customers in Iowa and includes three reportable segments: a) electric operations; b) gas operations; and c) other, which includes steam operations and the unallocated portions of the utility business. Various line items in the following tables are not allocated to the electric and gas segments for management reporting purposes, and therefore, are included only in “Total.” Intersegment revenues were not material to IPL’s operations and there was no single customer whose revenues were 10% or more of IPL’s consolidated revenues. All of IPL’s operations and assets are located in the U.S. Certain financial information relating to IPL’s business segments, which represent the services provided to its customers, was as follows (in millions):



2018	Electric		Gas		Other		Total
Revenues		$1,731.1		$266.2		$45.0		$2,042.3
Depreciation and amortization	254.7		25.2		3.6		283.5
Operating income	318.2		28.3		4.3		350.8
Interest expense							119.4
Income tax benefit							(3.2		)
Earnings available for common stock							264.0
Total assets	7,219.9		687.5		504.0		8,411.4
Construction and acquisition expenditures	890.6		99.7		0.4		990.7



2017	Electric		Gas		Other			Total
Revenues		$1,598.9		$226.0		$45.4			$1,870.3
Depreciation and amortization	215.1		22.2		7.7			245.0
Operating income (loss)	287.3		21.7		(4.9		)	304.1
Interest expense								112.4
Income tax benefit								(10.9		)
Earnings available for common stock								216.8
Total assets	6,524.4		727.9		353.7			7,606.0
Construction and acquisition expenditures	594.1		80.7		1.2			676.0



	98



2016	Electric		Gas		Other		Total
Revenues		$1,569.7		$204.0		$46.7		$1,820.4
Depreciation and amortization	189.4		19.3		2.1		210.8
Operating income	257.8		16.4		3.4		277.6
Interest expense							103.2
Income tax benefit							(5.9		)
Earnings available for common stock							215.6
Total assets	6,278.2		653.3		373.2		7,304.7
Construction and acquisition expenditures	598.1		91.5		0.1		689.7

WPL - WPL is a utility serving customers in Wisconsin and includes three reportable segments: a) electric operations; b) gas operations; and c) other, which includes WPL’s interest in ATC in 2016, and the unallocated portions of the utility business. Various line items in the following tables are not allocated to the electric and gas segments for management reporting purposes, and therefore, are included only in “Total.” Intersegment revenues were not material to WPL’s operations and there was no single customer whose revenues were 10% or more of WPL’s consolidated revenues. All of WPL’s operations and assets are located in the U.S. Certain financial information relating to WPL’s business segments, which represent the services provided to its customers, was as follows (in millions):



2018	Electric		Gas		Other			Total
Revenues		$1,269.2		$180.4		$3.0			$1,452.6
Depreciation and amortization	202.6		16.8		—			219.4
Operating income (loss)	292.0		24.9		(4.0		)	312.9
Interest expense								97.8
Income taxes								36.2
Earnings available for common stock								208.1
Total assets	5,266.4		496.9		389.2			6,152.5
Construction and acquisition expenditures	530.5		47.1		—			577.6



2017	Electric		Gas		Other			Total
Revenues		$1,295.8		$174.9		$2.1			$1,472.8
Depreciation and amortization	196.9		16.0		—			212.9
Operating income (loss)	314.4		26.0		(6.7		)	333.7
Interest expense								93.8
Income taxes								61.9
Earnings available for common stock								186.6
Total assets	4,871.8		471.9		412.8			5,756.5
Construction and acquisition expenditures	592.4		44.5		0.5			637.4



2016	Electric			Gas		Other			Total
Revenues		$1,305.8			$151.4		$1.9			$1,459.1
Depreciation and amortization	177.6			14.9		—			192.5
Operating income (loss)	328.7			16.6		(8.1		)	337.2
Interest expense									91.4
Equity income from unconsolidated investments	(0.7		)	—		(39.1		)	(39.8		)
Income taxes									93.3
Earnings available for common stock									190.4
Total assets	4,444.7			437.8		407.8			5,290.3
Construction and acquisition expenditures	395.9			45.6		11.5			453.0

NOTE 19. RELATED PARTIES

Service Agreements - Pursuant to service agreements, IPL and WPL receive various administrative and general services from an affiliate, Corporate Services. These services are billed to IPL and WPL at cost based on expenses incurred by Corporate Services for the benefit of IPL and WPL, respectively. These costs consisted primarily of employee compensation and benefits, fees associated with various professional services, depreciation and amortization of property, plant and equipment, and a return on net assets. Corporate Services also acts as agent on behalf of IPL and WPL pursuant to the service agreements. As agent, Corporate Services enters into energy, capacity, ancillary services, and transmission sale and purchase transactions within MISO. Corporate Services assigns such sales and purchases among IPL and WPL based on statements received from MISO. The amounts billed for services provided, sales credited and purchases were as follows (in millions):



	99



	IPL						WPL
	2018		2017		2016		2018		2017		2016
Corporate Services billings		$170		$177		$161		$132		$135		$133
Sales credited	48		23		8		28		13		7
Purchases billed	358		364		433		81		115		102

As of December 31, net intercompany payables to Corporate Services were as follows (in millions):



	2018		2017
IPL		$95		$114
WPL	71		61

ATC - Pursuant to various agreements, WPL receives a range of transmission services from ATC. WPL provides operation, maintenance, and construction services to ATC. WPL and ATC also bill each other for use of shared facilities owned by each party. The related amounts billed between the parties were as follows (in millions):



	2018		2017		2016
ATC billings to WPL		$106		$105		$110
WPL billings to ATC	11		10		13

As of December 31, 2018 and 2017, WPL owed ATC net amounts of $8 million and $9 million, respectively. Refer to Note 6 for discussion of WPL’s transfer of its investment in ATC to ATI on December 31, 2016.

WPL’s Sheboygan Falls Energy Facility Lease - Refer to Note 10(b) for discussion of WPL’s Sheboygan Falls Energy Facility lease.

Franklin County Wind Farm - Refer to Note 3 for discussion of the transfer of the Franklin County wind farm from AEF to IPL in April 2017.

NOTE 20. SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED)

Alliant Energy - All “per share” references refer to earnings per diluted share. Summation of the individual quarters may not equal annual totals due to rounding.



	2018								2017
	March 31		June 30		Sep. 30		Dec. 31		March 31		June 30		Sep. 30		Dec. 31
	(in millions, except per share data)
Revenues		$916.3		$816.1		$928.6		$873.5		$853.9		$765.3		$906.9		$856.1
Operating income	165.7		151.2		256.1		121.4		147.2		153.7		236.3		134.0
Amounts attributable to Alliant Energy common shareowners:
Income from continuing operations, net of tax	120.9		100.4		205.5		85.3		99.0		94.3		168.8		93.8
Income from discontinued operations, net of tax	—		—		—		—		1.4		—		—		—
Net income	120.9		100.4		205.5		85.3		100.4		94.3		168.8		93.8
Earnings per weighted average common share attributable to Alliant Energy common shareowners:
Income from continuing operations, net of tax	0.52		0.43		0.87		0.36		0.43		0.41		0.73		0.41
Income from discontinued operations, net of tax	—		—		—		—		0.01		—		—		—
Net income	0.52		0.43		0.87		0.36		0.44		0.41		0.73		0.41



	100

IPL - Earnings per share data is not disclosed for IPL given Alliant Energy is the sole shareowner of all shares of IPL’s common stock outstanding during the periods presented.



	2018								2017
	March 31		June 30		Sep. 30		Dec. 31		March 31		June 30		Sep. 30		Dec. 31
	(in millions)
Revenues		$525.8		$474.8		$547.6		$494.1		$450.5		$420.2		$527.4		$472.2
Operating income	75.6		77.7		143.1		54.4		51.3		68.1		133.8		50.9
Net income	49.3		54.2		129.1		41.6		39.8		45.3		123.0		18.9
Earnings available for common stock	46.7		51.7		126.5		39.1		37.2		42.8		120.4		16.4

WPL - Earnings per share data is not disclosed for WPL given Alliant Energy is the sole shareowner of all shares of WPL’s common stock outstanding during the periods presented.



	2018								2017
	March 31		June 30		Sep. 30		Dec. 31		March 31		June 30		Sep. 30		Dec. 31
	(in millions)
Revenues		$381.7		$330.8		$370.7		$369.4		$393.1		$334.8		$370.2		$374.7
Operating income	84.0		63.4		104.2		61.3		88.6		76.2		93.5		75.4
Net income	54.0		39.8		76.3		38.0		45.5		38.1		49.8		53.2
Earnings available for common stock	54.0		39.8		76.3		38.0		45.5		38.1		49.8		53.2

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