National Grid 2008 Annual Report Download - page 337

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 34532
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 131
Description: EXH 2(B).6.1
0/1735.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/735/1*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 34532
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 131 Description: EXH 2(B).6.1
0/1735.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/735/1*
‘Additional paid in capital.’ As part of this transaction, the Company also acquired four small non-regulated businesses.
On the date of the acquisition, the Rhode Island
g
as business served approximately 245,000 customers throu
g
h a distribution
network of over 3,000 miles of mains. The network substantially overlaps the Company’s existin
g
electricity distribution service
area in Rhode Island. This stron
g
overlap is expected to create opportunities for savin
g
s. The rates for the Rhode Island
g
as
distribution business are set by the same state regulators that set the Company’s electricity distribution rates in Rhode Island.
The acquisition was accounted for using the purchase method of accounting under the guidance of SFAS No. 141 “Business
Combinations”, with the purchase price paid by the Company allocated to the Company’s net assets as of the acquisition date
based on their fair values. The assets acquired and liabilities assumed have been recorded in the Company’s balance sheet
beginning August 24, 2006 at their fair values and the results of operations have been included in the Company’s statement of
operations since Au
g
ust 24, 2006. Therefore, the balance sheet and statements of operations for the periods subsequent to the
acquisition are not comparable to the same periods in prior years.
The following table summarizes the fair values of New England Gas Company’s assets and liabilities assumed by the Company
at the date of acquisition.
F-46
At August 24, 2006
(in thousands
)
Net utilit
y
p
lant $ 357,667
Goodwill 235,800
Other property and investments 4,536
Cash and cash e
q
uivalents 16
Accounts receivable 72,453
Materials and su
pp
lies 36,099
Prepaid and other current assets 423
Re
g
ulator
y
assets 92,745
Deferred charges and other assets 422
Total assets acquired 800,161
Long-term debt 76,051
Lon
g
-term debt due in one
y
ear 544
Accounts payable 29,392
Other accrued ex
p
enses 39,491
Customer deposits 3,270
Accrued
p
ension and other
p
ost-retirement benefits 46,922
Other reserves and deferred credits 107,753
Total liabilities assumed 303,423
Net assets acquired $ 496,738