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82
11. Marketable Securities
The following is a summary of NU’s available-for-sale securities which
are recorded at their fair market values and are included in current
and long-term marketable securities on the accompanying consolidated
balance sheets. Changes in the fair value of these securities are
recorded as unrealized gains and losses in accumulated other
comprehensive income.
At December 31,
(Millions of Dollars) 2005 2004
Globix $ 3.7 (a)
SERP securities 58.1 $55.1
WMECO prior spent nuclear fuel trust 50.8 49.3
Totals $112.6 $104.4
For 2005, management determined that the decline in the value of the
Globix investment was other than temporary in nature and recorded
pre-tax charges totaling $6.1 million in other income, net on the
accompanying consolidated statements of (loss)/income. This amount
is included in the negative $0.9 million after-tax amount which was
reclassified from accumulated other comprehensive income and
recognized in earnings in 2005.
(a) At December 31, 2004, NU’s$9.8 million investment in NEON was not a
marketable security. On March 8, 2005, NEON merged with Globix, and NU’s
investment in Globix became a marketable security at that time. For further
information regarding the Globix investment, see Note 1X, “Summary of
Significant Accounting Policies – Marketable Securities,” to the consolidated
financial statements.
At December 31, 2005 and 2004, these marketable securities are
comprised of the following:
At December 31, 2005
Pre-Tax Pre-Tax
Gross Gross
Amortized Unrealized Unrealized Estimated
(Millions of Dollars) Cost Gains Losses Fair Value
United States equity securities $ 23.2 $3.9 $(0.3) $ 26.8
Non-United States
equity securities 6.3 0.9 — 7.2
Fixed income securities 79.3 0.2 (0.9) 78.6
Totals $108.8 $5.0 $(1.2) $112.6
At December 31, 2004
Pre-Tax Pre-Tax
Gross Gross
Amortized Unrealized Unrealized Estimated
(Millions of Dollars) Cost Gains Losses Fair Value
United States equity securities $19.3 $3.8 $(0.2) $ 22.9
Non-United States
equity securities 5.6 1.3 — 6.9
Fixed income securities 74.7 0.3 (0.4) 74.6
Totals $99.6 $5.4 $(0.6) $104.4
At December 31, 2005 and 2004, NU evaluated the securities in an
unrealized loss position and has determined that none of the related
unrealized losses aredeemed to be other-than-temporary in nature.
At December 31, 2005 and 2004, the gross unrealized losses and fair
value of NU’s investments that have been in a continuous unrealized
loss position for less than 12 months and 12 months or greater were
as follows:
At December 31, 2005
Less than 12 Months 12 Months or Greater Total
Pre-Tax Pre-Tax Pre-Tax
Gross Gross Gross
Estimated Unrealized Estimated Unrealized Estimated Unrealized
(Millions of Dollars) Fair Value Losses Fair Value Losses Fair Value Losses
United States equity securities $2.9 $(0.2) $0.4 $(0.1) $ 3.3 $(0.3)
Non-United States equity securities — — — — — —
Fixed income securities 39.8 (0.7) 5.7 (0.2) 45.5 (0.9)
Totals $42.7 $(0.9) $6.1 $(0.3) $48.8 $(1.2)
At December 31, 2004
Less than 12 Months 12 Months or Greater Total
Pre-Tax Pre-Tax Pre-Tax
Gross Gross Gross
Estimated Unrealized Estimated Unrealized Estimated Unrealized
(Millions of Dollars) Fair Value Losses Fair Value Losses Fair Value Losses
United States equity securities $ 1.7 $(0.2) $ — $ — $ 1.7 $(0.2)
Non-United States
equity securities — — — — — —
Fixed income securities 40.0 (0.4) — — 40.0 (0.4)
Totals $41.7 $(0.6) $ — $ — $41.7 $(0.6)