Eversource 2004 Annual Report Download - page 80

78
8. Marketable Securities
The following is a summary of NU’s available-for-sale securities related
to NU’s SERP securities which are included in deferred debits and other
assets - other on the accompanying consolidated balance sheets, and
WMECO’s prior spent nuclear fuel trust:
At December 31,
(Millions of Dollars) 2004 2003
SERP securities $ 55.1 $36.9
WMECO prior spent nuclear fuel trust 49.3 —
Totals $104.4 $36.9
At December 31, 2004
Pre-Tax Pre-Tax
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
United States equity
securities $19.3 $3.8 $(0.2) $ 22.9
Non-United States
equity securities 5.6 1.3 — 6.9
Fixed income securities 74.7 0.3 (0.4) 74.6
Totals $99.6 $5.4 $(0.6) $104.4
At December 31, 2003
Pre-Tax Pre-Tax
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
United States equity
securities $13.2 $2.5 $(0.1) $15.6
Non-United States
equity securities 3.4 0.7 — 4.1
Fixed income securities 17.2 0.1 (0.1) 17.2
Total SERP securities $33.8 $3.3 $(0.2) $36.9
At December 31, 2004 and 2003 NU has evaluated the securities in an
unrealized loss position and has determined that none of the related
unrealized losses are deemed to be other-than-temporary in nature.
For information related to the change in net unrealized holding gains
and losses included in shareholders’ equity, see Note 12, “Accumulated
Other Comprehensive Income/(Loss),” to the consolidated financial
statements.
For years ended December 31, 2004, 2003, and 2002, realized gains and
losses recognized on the sale of available-for-sale securities are as
follows (in millions):
Realized Realized Net Realized
Gains Losses Gains/(Losses)
2004 $0.9 $(0.3) $0.6
2003 0.5 (0.1) 0.4
2002 0.8 (1.4) (0.6)
NU utilizes the specific identification basis method for the SERP securities
and the average cost basis method for the WMECO prior spent nuclear
fuel trust to compute the realized gains and losses on the sale of available-
for-sale securities.
Proceeds from the sale of these securities totaled $56.7 million,
$34.1 million, and $7.5 million for the years ended December 31, 2004,
2003 and 2002, respectively.
At December 31, 2004, the contractual maturities of the available-for-
sale securities are as follows (in millions):
Amortized Estimated
Cost Fair Value
Less than one year $47.6 $ 52.5
One to five years 21.9 21.7
Six to ten years 6.0 6.0
Greater than ten years 24.1 24.2
Total $99.6 $104.4
For further information regarding marketable securities, see Note 1X,
“Summary of Significant Accounting Policies — Marketable Securities”
to the consolidated financial statements.
9. Leases
NU has entered into lease agreements, some of which are capital leases,
for the use of data processing and office equipment, vehicles, and office
space. The provisions of these lease agreements generally provide for
renewal options. Certain lease agreements contain contingent lease
payments. The contingent lease payments are based on various factors,
such as, the commercial paper rate plus a credit spread or the consumer
price index.
Capital lease rental payments charged to operating expense were
$3.3 million in 2004, $3.7 million in 2003 and $1.7 million in 2002.
Interest included in capital lease rental payments was $2 million in
2004, $2.3 million in 2003 and $0.6 million in 2002. Operating lease
rental payments charged to expense were $16.3 million in 2004,
$16.1 million in 2003 and $14.5 million in 2002.
Future minimum rental payments excluding executory costs, such as
property taxes, state use taxes, insurance, and maintenance, under
long-term noncancelable leases, at December 31, 2004 are as follows:
Capital Operating
(Millions of Dollars) Leases Leases
2005 $ 3.1 $ 30.9
2006 2.9 28.5
2007 2.6 24.5
2008 2.3 21.0
2009 2.0 12.5
Thereafter 18.1 41.3
Future minimum lease payments 31.0 $158.7
Less amount representing interest 16.2
Present value of future minimum
lease payments $14.8
10. Long-Term Debt
Long-term debt maturities and cash sinking fund requirements on debt
outstanding at December 31, 2004, for the years 2005 through 2009 and
thereafter, are as follows:
(Millions of Dollars)
Year
2005 $ 90.8
2006 27.0
2007 8.2
2008 159.8
2009 61.5
Thereafter 2,277.7
Total $2,625.0