Eversource 2005 Annual Report Download - page 85

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For information related to the change in net unrealized holding
gains and losses included in shareholders’ equity, see Note 15,
“Accumulated Other Comprehensive Income/(Loss),” to the
consolidated financial statements.
For the years ended December 31, 2005, 2004, and 2003, realized
gains and losses recognized on the sale of available-for-sale securities
are as follows:
Realized Realized Net Realized
(Millions of Dollars) Gains Losses Gains/(Losses)
2005 $1.3 $(7.1) $(5.8)
2004 0.9 (0.3) 0.6
2003 0.5 (0.1) 0.4
For the year ended December 31, 2005, realized losses of $0.4 million
relating to the WMECO spent nuclear fuel trust are included in fuel,
purchased and net interchange power on the accompanying consolidated
statements of (loss)/income. There were no realized losses relating
to the WMECO spent nuclear fuel trust in 2004 or 2003. For the years
ended December 31, 2005, 2004 and 2003, all other net realized
(losses)/gains of $(5.4) million, $0.6 million, and $0.4 million, respectively,
are included in other income, net on the accompanying consolidated
statements of (loss)/income.
NU utilizes the specific identification basis method for the Globix and
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, including proceeds
from short-term investments, totaled $137.1 million, $106.2 million,
and $34.1 million for the years ended December 31, 2005, 2004
and 2003, respectively.
At December 31, 2005, the contractual maturities of the available-for-
sale securities areas follows:
Amortized Estimated
(Millions of Dollars) Cost Fair Value
Less than one year $51.8 $56.0
One to five years 28.7 28.5
Six to ten years 6.7 6.6
Greater than ten years 21.6 21.5
Totals $108.8 $112.6
NU’s investment in Globix is included in the one to five years maturity
category in the table above. All other available-for-sale equity securities
are included in the less than one year maturity category in the table above.
For further information regarding marketable securities, see Note 1X,
“Summary of Significant Accounting Policies – Marketable Securities”
to the consolidated financial statements.
12. 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 were $3.4 million in 2005, $3.3 million in
2004 and $3.7 million in 2003. Interest included in capital lease rental
payments was $1.9 million in 2005, $2 million in 2004 and $2.3 million
in 2003. Capital lease asset amortization was $1.4 million in 2005,
$1.3 million in 2004, and $1.4 million in 2003.
Operating lease rental payments charged to expense were $15.6 million
in 2005, $16.3 million in 2004 and $16.1 million in 2003. These amounts
include $0.9 million, $0.9 million, and $0.7 million included in (loss)/income
from discontinued operations on the accompanying consolidated
statements of (loss)/income for the years ended December 31, 2005,
2004, and 2003, respectively. The capitalized portion of operating lease
payments was approximately $9.4 million, $8.2 million, and $7.7 million
for the years ended December 31, 2005, 2004, and 2003, respectively.
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, 2005 are as follows:
Capital Operating
(Millions of Dollars) Leases Leases
2006 $ 2.7 $ 33.4
2007 2.6 29.9
2008 2.3 26.8
2009 2.0 18.8
2010 1.5 15.5
Thereafter 16.6 42.3
Future minimum lease payments 27.7 $166.7
Less amount representing interest 13.7
Present value of future minimum
lease payments $14.0
Total projected futureoperating lease payments of $166.7 million
above includes an aggregate amount of $1.8 million related to
companies classified as discontinued operations in the accompanying
consolidated financial statements.
13. Long-Term Debt
Long-termdebt maturities and cash sinking fund requirements on debt
outstanding at December 31, 2005, for the years 2006 through 2010
and thereafter, which exclude $268 million of fees and interest due
for spent nuclear fuel disposal costs and a negative $9.1 million related
to net unamortized premiums or discounts and other fair value
adjustments at December 31, 2005, are as follows (millions of dollars):
Year
2006 $22.7
2007 4.1
2008 155.3
2009 56.5
2010 8.0
Thereafter 2,544.5
Total $2,791.1
Essentially all utility plant of CL&P, PSNH, NGC, and Yankee Energy
System, Inc. is subject to the liens of each company’s respective first
mortgage bond indenture.
CL&P has $315.5 million of tax-exempt Pollution Control Revenue
Bonds (PCRBs) secured by second mortgage liens on transmission
assets, junior to the liens of its first mortgage bond indentures.