Eversource 2013 Annual Report Download - page 124

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112
Future minimum rental payments to external third parties excluding executory costs, such as property taxes, state use taxes, insurance,
and maintenance, under long-term noncancelable leases, as of December 31, 2013 are as follows:
Capital Leases
(Millions of Dollars)
NU
CL&P
PSNH
2014
$
2.6
$
2.1
$
0.4
2015
2.4
2.0
0.4
2016
2.2
1.9
0.3
2017
2.1
2.0
0.1
2018
2.1
2.0
0.1
Thereafter
5.4
5.4
-
Future minimum lease payments
16.8
15.4
1.3
Less amount representing interest
6.1
6.1
-
Present value of future minimum lease payments
$
10.7
$
9.3
$
1.3
Operating Leases
(Millions of Dollars)
NU
CL&P
NSTAR Electric
PSNH
WMECO
2014
$
20.1
$
4.0
$
10.9
$
1.0
$
1.1
2015
18.1
3.6
10.1
0.9
0.7
2016
15.4
2.9
8.9
0.8
0.5
2017
12.4
1.7
7.7
0.6
0.3
2018
8.5
1.2
5.1
0.5
0.2
Thereafter
22.3
4.7
11.7
1.3
1.0
Future minimum lease payments
$
96.8
$
18.1
$
54.4
$
5.1
$
3.8
CL&P entered into certain contracts for the purchase of energy that qualify as leases. These contracts do not have minimum lease
payments and therefore are not included in the tables above. However, such contracts have been included in the contractual
obligations table in Note 12B, "Commitments and Contingencies - Long-Term Contractual Arrangements," to the financial statements.
14. FAIR VALUE OF FINANCIAL INSTRUMENTS
The following methods and assumptions were used to estimate the fair value of each of the following financial instruments:
Preferred Stock, Long-Term Debt and Rate Reduction Bonds: The fair value of CL&P's and NSTAR Electric’s preferred stock is based
upon pricing models that incorporate interest rates and other market factors, valuations or trades of similar securities and cash flow
projections. The fair value of fixed-rate long-term debt securities and RRBs is based upon pricing models that incorporate quoted
market prices for those issues or similar issues adjusted for market conditions, credit ratings of the respective companies and treasury
benchmark yields. Adjustable rate long-term debt securities are assumed to have a fair value equal to their carrying value. The fair
values provided in the tables below are classified as Level 2 within the fair value hierarchy. Carrying amounts and estimated fair values
are as follows:
As of December 31,
2013
2012
NU
Carrying
Fair
Carrying
Fair
(Millions of Dollars)
Amount
Value
Amount
Value
Preferred Stock Not
Subject to Mandatory Redemption
$
155.6
$
152.7
$
155.6
$
152.2
Long-Term Debt
8,310.2
8,443.1
7,963.5
8,640.7
Rate Reduction Bonds
-
-
82.1
83.0
As of December 31, 2013
CL&P
NSTAR Electric
PSNH
WMECO
Carrying
Fair
Carrying
Fair
Carrying
Fair
Carrying
Fair
(Millions of Dollars)
Amount
Value
Amount
Value
Amount
Value
Amount
Value
Preferred Stock Not
Subject to Mandatory Redemption
$
116.2
$
110.5
$
43.0
$
42.2
$
-
$
-
$
-
$
-
Long-Term Debt
2,741.2
2,952.8
1,801.1
1,888.0
1,049.0
1,073.9
629.4
640.1
As of December 31, 2012
CL&P
NSTAR Electric
PSNH
WMECO
Carrying
Fair
Carrying
Fair
Carrying
Fair
Carrying
Fair
(Millions of Dollars)
Amount
Value
Amount
Value
Amount
Value
Amount
Value
Preferred Stock Not
Subject to Mandatory Redemption
$
116.2
$
110.0
$
43.0
$
42.2
$
-
$
-
$
-
$
-
Long-Term Debt
2,862.8
3,295.4
1,602.6
1,818.8
997.9
1,088.0
605.3
660.4
Rate Reduction Bonds
-
-
43.5
43.9
29.3
29.6
9.4
9.5
Derivative Instruments: Derivative instruments are carried at fair value. For further information, see Note 5, "Derivative Instruments," to
the financial statements.