Eversource 2009 Annual Report Download - page 162

FS-77
Unrealized Losses and Other-than-Temporary Impairment: Gross unrealized losses and fair values of debt securities that have been in
a continuous unrealized loss position for less than 12 months and 12 months or greater are as follows:
As of December 31, 2009
Less than 12 Months 12 Months or Greater Total
(Millions of Dollars) Fair Value
Pre-Tax
Gross
Unrealized
Losses Fair Value
Pre-Tax
Gross
Unrealized
Losses Fair Value
Pre-Tax
Gross
Unrealized
Losses
NU supplemental benefit trust
U.S. government issued debt
securities (agency and
treasury) $ 6.6 $ (0.1) $ 0.7 $ (0.1) $ 7.3 $ (0.2)
Corporate debt securities - - 0.4 (0.1) 0.4 (0.1)
Asset backed debt securities - - 1.2 (0.1) 1.2 (0.1)
Total NU supplemental benefit
trust $ 6.6 $ (0.1) $ 2.3 $ (0.3) $ 8.9 $ (0.4)
WMECO spent nuclear
fuel trust
Corporate debt securities $ - $ - $ 0.2 $ (0.1) $ 0.2 $ (0.1)
Asset backed debt securities - - 0.5 (0.2) 0.5 (0.2)
Total WMECO spent nuclear
fuel trust $ - $ - $ 0.7 $ (0.3) $ 0.7 $ (0.3)
Total NU $ 6.6 $ (0.1) $ 3.0 $ (0.6) $ 9.6 $ (0.7)
As of December 31, 2009, there were no debt securities that the Company intends to sell or that management believes the Company
will more likely than not be required to sell before recovery of amortized cost. Credit losses for the NU supplemental benefit trust were
de minimus for the year ended December 31, 2009. There were credit losses of $0.7 million for the WMECO spent nuclear fuel trust for
the year ended December 31, 2009, recorded in Deferred debits and other assets - other. Factors considered in determining whether a
credit loss exists include the duration and severity of the impairment, adverse conditions specifically affecting the issuer, and the
payment history, ratings and rating changes of the security. For asset backed securities, underlying collateral and expected future cash
flows are also evaluated. All of the corporate and asset-backed securities are rated above investment grade.
For the year ended December 31, 2008, NU recorded pre-tax charges of $15.3 million to Net income related to the unrealized losses,
which were considered other-than-temporary in nature under previous other-than-temporary impairment guidance on securities in the
NU supplemental benefit trust portfolio, and $2.1 million offset to the spent nuclear fuel obligation in long-term debt related to the
unrealized losses on securities in the WMECO spent nuclear fuel trust. For further information, see Note 1D, "Summary of Significant
Accounting Policies - Accounting Standards Recently Adopted," to the consolidated financial statements.
For information related to the change in unrealized gains included in accumulated other comprehensive income/(loss), see Note 14,
"Accumulated Other Comprehensive Income/(Loss)," to the consolidated financial statements.
Contractual Maturities: As of December 31, 2009, the contractual maturities of available-for-sale debt securities are as follows:
NU WMECO
(Millions of Dollars)
Amortized
Cost Fair Value
Amortized
Cost Fair Value
Less than one year $ 31.0 $ 30.9 $ 28.3 $ 28.3
One to five years 24.9 25.0 17.7 17.7
Six to ten years 7.7 8.0 1.2 1.2
Greater than ten years 22.0 21.9 9.8 9.6
Total debt securities $ 85.6 $ 85.8 $ 57.0 $ 56.8
Sales of Securities: For the years ended December 31, 2009, 2008 and 2007, realized gains and losses recognized on the sale of
available-for-sale securities are as follows:
NU WMECO
(Millions of Dollars)
Realized
Gains
Realized
Losses
Net Realized
Gains/(Losses)
Realized
Gains
Realized
Losses
Net Realized
Gains/(Losses)
2009 $ 15.9 $ (6.2) $ 9.7 $ - $ (0.8) $ (0.8)
2008 2.5 (2.2) 0.3 0.2 (0.6) (0.4)
2007 2.8 (1.0) 1.8 0.1 (0.1) -
Realized gains and losses on available-for-sale-securities are recorded in Other income, net for the NU supplemental benefit trust and
in Deferred debits and other assets - other for the WMECO spent nuclear fuel trust. NU utilizes the specific identification basis method
for the NU supplemental benefit trust securities and the average cost basis method for the WMECO spent nuclear fuel trust to compute