Item 16. FORM 10-K SUMMARY

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Item 16. FORM 10-K SUMMARY

None.


2021 Form 10-K			160			WEC Energy Group, Inc.

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SCHEDULE I – CONDENSED

PARENT COMPANY FINANCIAL STATEMENTS

WEC ENERGY GROUP, INC. (PARENT COMPANY ONLY)

A. INCOME STATEMENTS


Year Ended December 31
(in millions)	2021		2020		2019
Operating expenses	$	12.0	$	5.3	$	4.7
Equity earnings of subsidiaries	1,367.0		1,283.8		1,210.5
Other income, net	1.7		1.3		6.3
Interest expense	70.2		96.9		122.3
Loss on debt extinguishment	23.1		38.4		—
Income before income taxes	1,263.4		1,144.5		1,089.8
Income tax benefit	36.9		55.4		44.2
Net income attributed to common shareholders	$	1,300.3	$	1,199.9	$	1,134.0

The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements.


2021 Form 10-K			161			WEC Energy Group, Inc.

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B. STATEMENTS OF COMPREHENSIVE INCOME


Year Ended December 31
(in millions)	2021		2020		2019
Net income attributed to common shareholders	$	1,300.3	$	1,199.9	$	1,134.0

Other comprehensive income (loss), net of tax
Derivatives accounted for as cash flow hedges
Net derivative gain (loss), net of tax expense (benefit) of $0.2, $(1.6), and $(1.3), respectively	0.6		(4.3)		(3.5)
Reclassification of realized net derivative (gain) loss to net income, net of tax	0.9		1.5		(0.8)
Cash flow hedges, net	1.5		(2.8)		(4.3)

Defined benefit plans
Pension and OPEB adjustments arising during the period, net of tax	0.4		(0.4)		0.4
Amortization of pension and OPEB costs included in net periodic benefit cost, net of tax	0.3		0.3		0.2
Defined benefit plans, net	0.7		(0.1)		0.6

Other comprehensive income from subsidiaries, net of tax	1.4		0.2		2.2

Other comprehensive income (loss), net of tax	3.6		(2.7)		(1.5)

Comprehensive income attributed to common shareholders	$	1,303.9	$	1,197.2	$	1,132.5

The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements.


2021 Form 10-K			162			WEC Energy Group, Inc.

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C. BALANCE SHEETS


At December 31
(in millions)	2021		2020
Assets
Current assets
Cash and cash equivalents	$	0.5	$	4.0
Accounts receivable from related parties	0.6		0.7
Notes receivable from related parties	29.0		110.8
Prepaid taxes	56.5		54.4
Other	0.1		0.1
Current assets	86.7		170.0

Long-term assets
Investments in subsidiaries	15,365.4		14,248.3
Other	21.8		15.7
Long-term assets	15,387.2		14,264.0
Total assets	$	15,473.9	$	14,434.0

Liabilities and Equity
Current liabilities
Short-term debt	$	736.1	$	820.4
Accounts payable to related parties	5.5		31.7
Notes payable to related parties	220.4		303.0
Other	21.5		19.6
Current liabilities	983.5		1,174.7

Long-term liabilities
Long-term debt	3,549.8		2,754.8
Other	27.4		34.8
Long-term liabilities	3,577.2		2,789.6

Common shareholders' equity	10,913.2		10,469.7
Total liabilities and equity	$	15,473.9	$	14,434.0

The accompanying notes to Condensed Parent Company Financial Statements are an integral part of these financial statements.


2021 Form 10-K			163			WEC Energy Group, Inc.

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D. STATEMENTS OF CASH FLOWS


Year Ended December 31
(in millions)	2021		2020		2019
Operating activities
Net income attributed to common shareholders	$	1,300.3	$	1,199.9	$	1,134.0
Reconciliation to cash provided by operating activities
Equity income in subsidiaries, net of distributions	(571.3)		(385.7)		(475.2)
Deferred income taxes, net	(1.9)		12.7		9.1
Loss on debt extinguishment	23.1		38.4		—
Change in –
Accounts receivable from related parties	0.1		—		3.3
Prepaid taxes	(2.1)		(7.9)		(46.5)
Accounts payable to related parties	(26.2)		29.2		(5.2)
Other current liabilities	8.6		(2.4)		1.5
Other, net	(2.5)		9.6		7.0
Net cash provided by operating activities	728.1		893.8		628.0

Investing activities
Capital contributions to subsidiaries	(734.0)		(1,026.1)		(602.3)
Return of capital from subsidiaries	196.1		602.8		337.3
Short-term notes receivable from related parties, net	81.8		(88.3)		48.5
Redemption of long-term notes receivable from UMERC	—		—		150.0
Other, net	(1.1)		3.7		(0.6)
Net cash used in investing activities	(457.2)		(507.9)		(67.1)

Financing activities
Exercise of stock options	15.7		43.8		67.0
Purchase of common stock	(33.1)		(99.2)		(140.1)
Dividends paid on common stock	(854.8)		(798.0)		(744.5)
Issuance of long-term debt	1,100.0		1,650.0		350.0
Retirement of long-term debt	(300.0)		(1,430.0)		—
Issuance of short-term loan	—		340.0		—
Repayment of short-term loan	(340.0)		—		—
Change in other short-term debt	255.7		145.7		(213.7)
Short-term notes payable to related parties, net	(82.6)		(186.3)		90.4
Payments for debt extinguishment and issuance costs	(33.9)		(47.3)		(0.8)
Other, net	(1.4)		(1.1)		(1.5)
Net cash used in financing activities	(274.4)		(382.4)		(593.2)

Net change in cash and cash equivalents	(3.5)		3.5		(32.3)
Cash and cash equivalents at beginning of year	4.0		0.5		32.8
Cash and cash equivalents at end of year	$	0.5	$	4.0	$	0.5

The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements.


2021 Form 10-K			164			WEC Energy Group, Inc.

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SCHEDULE I – CONDENSED

PARENT COMPANY FINANCIAL STATEMENTS

WEC ENERGY GROUP, INC. (PARENT COMPANY ONLY)

E. NOTES TO PARENT COMPANY FINANCIAL STATEMENTS

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

For Parent Company only presentation, investments in subsidiaries are accounted for using the equity method. We use the cumulative earnings approach for classifying distributions received in the statements of cash flows.

The condensed Parent Company financial statements and notes should be read in conjunction with the consolidated financial statements and notes of WEC Energy Group, Inc. appearing in this Annual Report on Form 10-K.

NOTE 2—CASH DIVIDENDS RECEIVED FROM SUBSIDIARIES

Dividends received from our subsidiaries during the years ended December 31 were as follows:


(in millions)	2021		2020		2019
WE	$	360.0	$	395.0	$	360.0
We Power	217.9		240.9		192.5
ATC Holding (1)	106.4		112.6		87.4
WECI (2)	46.4		33.6		25.4
Bluewater	35.0		—		—
WG	30.0		70.0		60.0
UMERC	—		46.0		10.0
Total	$	795.7	$	898.1	$	735.3

(1) We also received amounts classified as return of capital of $32.0 million, $19.6 million, and $220.6 million from ATC Holding during the years ended December 31, 2021, 2020, and 2019, respectively.

(2) We also received amounts classified as return of capital of $164.1 million, $583.2 million, and $116.7 million from WECI during the years ended December 31, 2021, 2020, and 2019, respectively.

NOTE 3—LONG-TERM DEBT

The following table shows the future maturities of our long-term debt outstanding as of December 31, 2021:


(in millions)
2022	$	—
2023	700.0
2024	600.0
2025	120.0
2026	—
Thereafter	2,150.0
Total	$	3,570.0

WECC is our subsidiary and has $50.0 million of long-term notes outstanding. In a Support Agreement between WECC and us, we agreed to make sufficient liquid asset contributions to WECC to permit WECC to service its debt obligations as they become due.


2021 Form 10-K			165			WEC Energy Group, Inc.

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NOTE 4—FAIR VALUE MEASUREMENTS

The following table shows the financial instruments included on our balance sheets that are not recorded at fair value as of December 31:


	2021				2020
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value

Long-term debt, including current portion	$	3,549.8	$	3,546.9	$	2,754.8	$	2,836.9

The fair value of our long-term debt is categorized within Level 2 of the fair value hierarchy.

NOTE 5—GUARANTEES

The following table shows our outstanding guarantees on behalf of our subsidiaries:


	Total Amounts Committed at December 31, 2021			Expiration
(in millions)			Less Than 1 Year			1 to 3 Years			Over 3 Years
Guarantees supporting business operations (1)	$	888.4		$	813.7		$	1.2		$	73.5
Standby letters of credit (2)	27.8			2.5			—			25.3
Surety bonds (3)	12.8			12.8			—			—
Other guarantees (4)	9.4			—			—			9.4
Total guarantees	$	938.4		$	829.0		$	1.2		$	108.2

(1) Consists of $6.2 million, $9.7 million, and $872.5 million of guarantees to support the business operations of UMERC, Bluewater, and WECI, respectively.

(2) At our request, financial institutions have issued standby letters of credit for the benefit of third parties that have extended credit to our subsidiaries. These amounts are not reflected on our balance sheets.

(3) Primarily for workers compensation self-insurance programs and obtaining various licenses, permits, and rights-of-way. These amounts are not reflected on our balance sheets.

(4) Consists of $9.4 million related to workers compensation coverage for which a liability was recorded on our balance sheets.

NOTE 6—SUPPLEMENTAL CASH FLOW INFORMATION


(in millions)	2021		2020		2019
Cash paid for interest	$	70.2	$	98.5	$	117.7
Cash received for income taxes, net	(27.9)		(61.5)		(4.9)

NOTE 7—SHORT-TERM NOTES RECEIVABLE FROM RELATED PARTIES

The following table shows our outstanding short-term notes receivable from related parties as of December 31:


(in millions)	2021		2020
UMERC	$	22.0	$	30.7
Bluewater	7.0		—
Integrys	—		68.1
Wispark	—		12.0
Total	$	29.0	$	110.8


2021 Form 10-K			166			WEC Energy Group, Inc.

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NOTE 8—SHORT-TERM NOTES PAYABLE TO RELATED PARTIES

The following table shows our outstanding short-term notes payable to related parties as of December 31:


(in millions)	2021		2020
WBS	$	107.7	$	149.0
WECC	107.4		110.0
Integrys	5.3		—
Bluewater	—		44.0
Total	$	220.4	$	303.0


2021 Form 10-K			167			WEC Energy Group, Inc.

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SCHEDULE II

WEC ENERGY GROUP, INC.

VALUATION AND QUALIFYING ACCOUNTS


Allowance for Doubtful Accounts (in millions)	Balance at Beginning of Period		Expense (1)		Deferral		Net Write-offs (2)		Sale of Business		Balance at End of Period
December 31, 2021	$	220.1	$	107.4	$	(44.8)	$	(84.4)	$	—	$	198.3
December 31, 2020	140.0		102.8		55.3		(77.9)		(0.1)		220.1
December 31, 2019	149.2		85.8		11.4		(106.4)		—		140.0

(1) Net of recoveries.

(2) Represents amounts written off to the reserve, net of adjustments to regulatory assets.


2021 Form 10-K			168			WEC Energy Group, Inc.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		WEC ENERGY GROUP, INC.

	By	/s/ SCOTT J. LAUBER
Date:	February 24, 2022	Scott J. Lauber
		President and Chief Executive Officer


2021 Form 10-K			169			WEC Energy Group, Inc.

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Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


/s/ SCOTT J. LAUBER						February 24, 2022
Scott J. Lauber, President and Chief Executive Officer, and Director --
Principal Executive Officer

/s/ XIA LIU						February 24, 2022
Xia Liu, Executive Vice President and Chief Financial Officer --
Principal Financial Officer

/s/ WILLIAM J. GUC						February 24, 2022
William J. Guc, Vice President and Controller --
Principal Accounting Officer

/s/ GALE E. KLAPPA						February 24, 2022
Gale E. Klappa, Executive Chairman and Director




/s/ CURT S. CULVER						February 24, 2022
Curt S. Culver, Director

/s/ DANNY L. CUNNINGHAM						February 24, 2022
Danny L. Cunningham, Director

/s/ WILLIAM M. FARROW III						February 24, 2022
William M. Farrow III, Director




/s/ CRISTINA A. GARCIA-THOMAS						February 24, 2022
Cristina A. Garcia-Thomas, Director

/s/ MARIA C. GREEN						February 24, 2022
Maria C. Green, Director




/s/ THOMAS K. LANE						February 24, 2022
Thomas K. Lane, Director

/s/ ULICE PAYNE, JR.						February 24, 2022
Ulice Payne, Jr., Director

/s/ MARY ELLEN STANEK						February 24, 2022
Mary Ellen Stanek, Director

/s/ GLEN E. TELLOCK						February 24, 2022
Glen E. Tellock, Director


2021 Form 10-K			170			WEC Energy Group, Inc.

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