Eversource 2003 Annual Report Download - page 77

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75
9. 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.
Capital lease rental payments charged to operating expense were $3.7
million in 2003, $1.7 million in 2002, and $13.1 million in 2001. Interest
included in capital lease rental payments was $2.3 million in 2003, $0.6
million in 2002, and $4.7 million in 2001. Operating lease rental payments
charged to expense were $7.6 million in 2003, $7.8 million in 2002, and
$7 million in 2001.
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, 2003 are as follows:
(Millions of Dollars) Capital Operating
Year Leases Leases
2004 $ 3.1 $ 21.9
2005 3.1 19.6
2006 2.9 17.6
2007 2.6 14.2
2008 2.3 12.0
Thereafter 20.1 27.4
Future minimum lease payments $34.1 $112.7
Less amount representing interest 18.2
Present value of future minimum lease payments $15.9
10. Accumulated Other Comprehensive Income/(Loss)
The accumulated balance for each other comprehensive income/(loss)
item is as follows:
Current
December 31, Period December 31,
(Millions of Dollars) 2002 Change 2003
Qualified cash flow
hedging instruments $15.5 $ 9.3 $24.8
Unrealized (losses)/gains
on securities (0.1) 2.1 2.0
Minimum supplemental
executive retirement pension
liability adjustments (0.5) (0.3) (0.8)
Accumulated other comprehensive
income $14.9 $11.1 $26.0
Current
December 31, Period December 31,
(Millions of Dollars) 2001 Change 2002
Qualified cash flow
hedging instruments $(36.9) $52.4 $15.5
Unrealized gains/(losses)
on securities 5.0 (5.1) (0.1)
Minimum supplemental
executive retirement pension
liability adjustments (0.6) 0.1 (0.5)
Accumulated other comprehensive
(loss)/income $(32.5) $47.4 $14.9
The changes in the components of other comprehensive income/(loss)
are reported net of the following income tax effects:
(Millions of Dollars) 2003 2002 2001
Qualified cash flow
hedging instruments $(6.4) $(33.1) $24.3
Unrealized (losses)/gains
on securities (1.4) 3.3 (1.9)
Minimum supplemental
executive retirement pension
liability adjustments ———
Accumulated other comprehensive
(loss)/income $(7.8) $(29.8) $22.4
Accumulated other comprehensive income/(loss) fair value adjustments
of NU’s qualified cash flow hedging instruments are as follows:
At December 31,
(Millions of Dollars, Net of Tax) 2003 2002
Balance at beginning of year $15.5 $(36.9)
Hedged transactions
recognized into earnings (5.3) 17.0
Change in fair value 5.0 29.2
Cash flow transactions entered
into for the period 9.6 6.2
Net change associated with the
current period hedging transactions 9.3 52.4
Total fair value adjustments
included in accumulated other
comprehensive income $24.8 $ 15.5