WEC ENERGY GROUP, INC.WEC
WEC ENERGY GROUP, INC. Goodwill & Intangibles Disclosure
GOODWILL AND INTANGIBLES
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable net assets acquired. The table below shows our goodwill balances by segment at December 31, 2025. We had no changes to the carrying amount of goodwill during the years ended December 31, 2025 and 2024.
| (in millions) | Wisconsin | Illinois | Other States | Non-Utility Energy Infrastructure | Total | |||||||||||||||||||||||||||
Goodwill (1) | $ | 2,104.3 | $ | 758.7 | $ | 183.2 | $ | 6.6 | $ | 3,052.8 | ||||||||||||||||||||||
(1) We had no accumulated impairment losses related to our goodwill as of December 31, 2025.
During the third quarter of 2025, annual impairment tests were completed at all of our reporting units that carried a goodwill balance as of July 1, 2025. No impairments resulted from these tests.
Other Indefinite-Lived Intangible Assets
At December 31, 2025 and 2024, we had $44.4 million and $29.3 million, respectively, of other indefinite-lived intangible assets included in other long-term assets on our balance sheets. These assets consist of $24.1 million of spectrum frequencies, which enable our utilities to transmit data and voice communications over a wavelength dedicated to us throughout our service territories. We also have $5.2 million of other indefinite-lived intangible assets, consisting of a MGU trade name from a previous acquisition. In October 2025, we entered into an option agreement for exclusive rights to purchase land for future generation development in Wisconsin. We made the first annual option payment and incurred costs of $15.1 million during 2025, with a right to exercise our option on or before December 31, 2030.
Finite-Lived Intangible Asset
At December 31, 2025 and 2024, we had a finite-lived intangible asset with a gross carrying amount of $18.8 million and $13.0 million, respectively, related to a PPA for Maple Flats acquired by WECI in November 2024. The PPA will be amortized over a useful life of 15 years and expires in 2039. At December 31, 2025 and 2024, accumulated amortization related to the intangible asset was not material. This finite-lived intangible asset is included in other long-term assets on our balance sheet. Amortization expense related to the intangible asset was not material for the year ended December 31, 2025 and 2024. Amortization expense to be recorded as a decrease to operating revenues is expected to be $1.3 million in each of the next five years. See Note 2, Acquisitions, for more information on the acquisition of Maple Flats.
Intangible Liabilities
The intangible liabilities below were all obtained through acquisitions by WECI.
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||
| (in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||
PPAs (1) | $ | 751.2 | $ | (176.5) | $ | 574.7 | $ | 679.6 | $ | (119.3) | $ | 560.3 | ||||||||||||||||||||||||||
Proxy revenue swap (2) | 7.2 | (4.9) | 2.3 | 7.2 | (4.2) | 3.0 | ||||||||||||||||||||||||||||||||
Interconnection agreements (3) | 4.7 | (1.4) | 3.3 | 4.7 | (1.2) | 3.5 | ||||||||||||||||||||||||||||||||
| Total intangible liabilities | $ | 763.1 | $ | (182.8) | $ | 580.3 | $ | 691.5 | $ | (124.7) | $ | 566.8 | ||||||||||||||||||||||||||
(1) Represents PPAs related to the acquisition of Blooming Grove, Tatanka Ridge, Jayhawk, Thunderhead, Samson I, Sapphire Sky, Delilah I, and Hardin III expiring between 2030 and 2040. The weighted-average remaining useful life of the PPAs is 10 years. See Note 2, Acquisitions, for more information on recent WECI acquisitions.
(2) Represents an agreement with a counterparty to swap the market revenue of Upstream's wind generation for fixed quarterly payments over 10 years, which expires in 2029. The remaining useful life of the proxy revenue swap is three years.
(3) Represents interconnection agreements related to the acquisitions of Tatanka Ridge and Bishop Hill III, expiring in 2040 and 2041, respectively. These agreements relate to payments for connecting our facilities to the infrastructure of another utility to facilitate the movement of power onto the electric grid. The weighted-average remaining useful life of the interconnection agreements is 15 years.
Amortization related to these intangible liabilities for the years ended December 31, 2025, 2024, and 2023 was $58.1 million, $53.7 million, and $50.6 million, respectively. Amortization for the next five years is estimated to be:
| For the Years Ending December 31 | ||||||||||||||||||||||||||||||||
| (in millions) | 2026 | 2027 | 2028 | 2029 | 2030 | |||||||||||||||||||||||||||
| Amortization to be recorded as an increase to operating revenues | $ | 59.9 | $ | 59.9 | $ | 59.9 | $ | 59.9 | $ | 59.9 | ||||||||||||||||||||||
| Amortization to be recorded as a decrease to other operation and maintenance | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | |||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 26, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.