Panels a) and b) show two example spectra of XTE J1946+274. Epoch I is the spectrum with the highest count rate while epoch IV is the only data set for which all instruments are available. Histograms show the best-fit continuum. Panels c)–k) show the behavior of the residuals when the additional components of the spectral model are added one by one. Numbers at the bottom right of each panel indicate the best-fit statistics, χ²/d.o.f. c) and d) best fit using the Fermi-Dirac cutoff only; e) and f) residuals after adding the 10 keV feature to the continuum model; g) and h) residuals after adding the Galactic ridge emission to the PCA (for epoch I the flux of this model component was fixed to the result obtained from epochs III and IV); i) and j) residuals after adding the Fe Kα line to the model. Since in the model fit of epoch IV the depth of the CRSF is zero; panel j) displays the final result for epoch IV. In panel k) the CRSF was added to the data for epoch I. See also text for a discussion of the statistical significances of the Galactic ridge emission, the 10 keV feature, and the CRSF.