Eversource 2002 Annual Report Download - page 48

(Millions of Dollars, For the Years Ended December 31,
except per share amounts) 2002 2001 2000
Net income/(loss), as reported $152.1 $243.5 $(28.6)
Total stock-based employee
compensation expense
determined under
fair value-based method for
all awards, net of related tax effects (5.3) (4.4) (5.3)
Pro forma net income/(loss) $146.8 $239.1 $(33.9)
Earnings/(loss) per share:
Basic – as reported $1.18 $1.80 $(0.20)
Basic – pro forma $1.14 $1.76 $(0.24)
Diluted – as reported $1.18 $1.79 $(0.20)
Diluted – pro forma $1.14 $1.76 $(0.24)
L. Other Income/(Loss), Net
The pre-tax components of NU’s other income/(loss), net items are
as follows:
For the Years Ended December 31,
(Millions of Dollars) 2002 2001 2000
Seabrook-related gains $38.7 $— $ —
Investment write-downs (18.4) — —
Gain related to Millstone sale —201.9 —
Loss on share repurchase contracts —(35.4) —
Investment income 25.4 19.3 42.4
Other, net (1.9) 1.8 (56.7)
Totals $43.8 $187.6 $(14.3)
Other, net in 2000 primarily relates to nuclear related costs and
adjustments to NU’s environmental reserves.
M. Supplemental Cash Flow Information
In conjunction with the Yankee acquisition on March 1, 2000, common
stock was issued and debt was assumed as follows (millions of dollars):
Fair value of assets acquired,
net of liabilities assumed $ 712.5
Debt assumed (234.0)
NU common shares issued (217.1)
Cash paid $ 261.4
For the Years Ended December 31,
(Millions of Dollars) 2002 2001 2000
Cash paid during the year for:
Interest, net of amounts capitalized $259.9 $275.3 $269.7
Income taxes $114.4 $321.0 $253.4
2. Short-Term Debt
Limits: The amount of short-term borrowings that may be incurred
by NU and its operating companies is subject to periodic approval by
either the SEC under the 1935 Act or by the respective state regulators.
Currently, SEC authorization allows NU, CL&P, WMECO, and Yankee
Gas to incur total short-term borrowings up to a maximum of $400
million, $375 million, $250 million, and $100 million, respectively.
In addition, the charter of CL&P contains preferred stock provisions
restricting the amount of unsecured debt that CL&P may incur.
At December 31, 2002, CL&P’s charter permits CL&P to incur $480
million of additional unsecured debt. PSNH is authorized by the New
Hampshire Public Utilities Commission (NHPUC) to incur short-term
borrowings up to a maximum of $100 million. Prior to the sale of
Seabrook, NAEC had NHPUC authorization to incur short-term
borrowings up to a maximum of $260 million. Currently, NAEC has
no plans to incur any future short-term borrowings.
Regulated Companies Credit Agreement: On November 12, 2002, CL&P,
PSNH, WMECO, and Yankee Gas entered into a 364-day unsecured
revolving credit facility for $300 million. This facility replaced a $350
million facility for CL&P, PSNH, WMECO and Yankee Gas, which
expired on November 15, 2002. CL&P may draw up to $150 million
under the facility and PSNH, WMECO and Yankee Gas each may draw
up to $100 million, subject to the $300 million maximum borrowing
limit under the facility. Unless extended, the credit facility will expire
on November 11, 2003. At December 31, 2002 and 2001, there were
$7 million and $160.5 million, respectively, in borrowings under
these facilities.
NU Parent Credit Agreement: NU replaced its $300 million 364-day
unsecured revolving credit facility, which was to expire on November 15,
2002, with a 364-day unsecured revolving credit facility on November 12,
2002. This facility provides a total commitment of $350 million, which
is available subject to two overlapping sub-limits. First, subject to the
notional amount of any letters of credit outstanding, amounts up to
$350 million are available for advances. Second, subject to the advances
outstanding, letters of credit may be issued in notional amounts up to
$250 million, an increase of $50 million over the prior facility in the
name of NU or any of its subsidiaries. Unless extended, this credit facility
will expire on November 11, 2003. At December 31, 2002 and 2001,
there were $49 million and $40 million, respectively, in borrowings
under these facilities. With regard to credit support, NU had $6.7 million
and $45 million, respectively, in letters of credit issued under these
facilities at December 31, 2002 and 2001.
NAEC Credit Agreement: On November 9, 2001, NAEC entered into an
unsecured 364-day term credit agreement for $90 million. The term
credit agreement contained a mandatory prepayment provision requiring
100 percent prepayment of the aggregate amount outstanding within
two days of the sale of Seabrook. On November 1, 2002, NAEC
consummated the sale of its ownership interest in Seabrook and repaid
its $90 million in borrowings under this credit agreement. The agreement
expired on November 8, 2002. At December 31, 2001, there were $90
million in borrowings under this term credit agreement.
Under the aforementioned credit agreements, NU and its subsidiaries
may borrow at fixed or variable rates plus an applicable margin based
upon certain debt ratings, as rated by the lower of Standard and Poor’s
or Moody’s Investors Service. The weighted average interest rates on
NU’s notes payable to banks outstanding on December 31, 2002 and
2001, were 4.25 percent and 3.38 percent, respectively.
These credit agreements provide that NU and its subsidiaries must
comply with certain financial and nonfinancial covenants as are
customarily included in such agreements, including, but not limited to,
consolidated debt ratios and interest coverage ratios. The parties to the
credit agreements currently are and expect to remain in compliance
with these covenants.
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