Eversource 2004 Annual Report Download - page 86

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16. Restatement of Previously Issued Financial
Statements
NU concluded that it incorrectly classified as unrestricted cash from
counterparties amounts that should have been classified as cash and
cash equivalents at December 31, 2003. These corrections reclassified
unrestricted cash from counterparties to cash and cash equivalents
because those funds were unrestricted and were used to fund or were
available to fund the company’s operations. The December 31, 2003
consolidated balance sheet has been restated for these corrections and
a correction to decrease derivative assets and liabilities by the same
amount in order to eliminate certain intercompany derivative assets
and liabilities.
The effects of the revisions on the consolidated balance sheet as of
December 31, 2003 and the consolidated statement of cash flows for the
year ended December 31, 2003 are summarized in the following tables
(in thousands):
At December 31, 2003
Previously As
Consolidated Balance Sheet Reported Restated
Cash and cash equivalents $ 37,196 $ 43,372
Unrestricted cash from counterparties 46,496 —
Derivative assets — current (1) 301,194 249,117
Accounts payable 768,783 728,463
Derivative liabilities — current (1) 164,689 112,612
(1) The 2003 derivative assets and derivative liabilities balances have been
reclassified to conform to the current year’s presentation. See reclassification
below.
For the Year Ended December 31, 2003
Previously As
Consolidated Statement of Cash Flows Reported Restated
Income before preferred dividends
of subsidiary $126,711 $126,711
Adjustments to reconcile net cash
flows provided by operating activities:
Unrestricted cash from counterparties (29,606) —
Other current assets (24,863) 8,285
Accounts payable (7,436) (30,866)
Other current liabilities 100,039 90,928
Other operating activities 408,727 398,356
Net cash flows provided by operating activities 573,572 593,414
Net decrease in cash and cash equivalents (13,137) (6,961)
Cash and cash equivalents — end of year $ 37,196 $ 43,372
Additionally, certain reclassifications of prior years’ data have been made
to conform with the current year’s presentation. These reclassifications
are summarized in the following tables (in thousands):
At December 31, 2003
Previously As
Reported Reclassified
Derivative assets — current (1) $ 249,117 $ 116,305
Derivative assets — long-term — 132,812
249,117 249,117
Derivative liabilities — current (1) 112,612 51,117
Derivative liabilities — long-term — 61,495
112,612 112,612
Accumulated deferred income taxes 1,287,354 1,277,309
Accrued taxes 51,598 50,881
Other current liabilities (2) 203,080 213,842
$1,542,032 $1,542,032
(1) The 2003 derivative assets and derivative liabilities balances have been restated
from amounts previously reported.
(2) Other current liabilities as previously reported excludes $46.5 million of counter-
party deposits, which are now separately disclosed.
Reclassifications to income statement amounts are as follows:
For Year Ended December 31, 2003
Previously As
Reported Reclassified
Fuel, purchased and net
interchange power $3,730,416 $3,735,154
Other 900,437 953,026
Maintenance 232,030 174,703
Amortization 182,675 191,805
Income tax expense 59,862 50,732
For Year Ended December 31, 2002
Previously As
Reported Reclassified
Fuel, purchased and net
interchange power $3,046,781 $3,048,813
Other 752,482 815,212
Maintenance 263,487 198,725
Amortization 312,955 320,409
Income tax expense 82,304 74,850