(w) Advertising Costs—We expense all advertising costs as incurred, except for those capitalized as direct-response advertising. Costs associated with certain natural gas and electric direct-response advertising campaigns at Integrys Energy Services were capitalized and reported as other long-term assets on the balance sheets. The capitalized costs result in probable future benefits and were incurred to solicit sales to customers who could be shown to have responded specifically to the advertising. The asset balances for each of the direct-response advertising cost pools are reviewed quarterly for impairment. Direct-response advertising costs are amortized to operating and maintenance expense over the estimated period of benefit, which is approximately two years.
