Eversource 2006 Annual Report Download - page 78

The following is a summary of amounts recorded as regulatory assets at December 31, 2006 and the portions of those amounts expected to be
recognized as portions of net periodic benefit cost in 2007, which is expected to total $26.2 million for the Pension Plan, $3.6 million for the SERP
and $39.8 million for the PBOP Plan on a pre-tax basis:
At December 31, 2006 Estimated Expense in 2007
(Millions of Dollars) Pension SERP OPEB Total Pension SERP OPEB Total
Transition obligation $ 0.7 $ — $ 67.9 $ 68.6 $ 0.2 $ — $11.3 $11.5
Prior service cost 38.1 0.6 (3.9) 34.8 6.5 0.2 (0.3) 6.4
Net actuarial loss184.7 5.0 114.3 304.0 26.2 0.6 8.8 35.6
Total $223.5 $5.6 $178.3 $407.4 $32.9 $0.8 $19.8 $53.5
The following is a summary of losses recorded in accumulated other comprehensive income, net of tax, at December 31, 2006 and the portions of
those amounts expected to be recognized as portions of net periodic benefit cost in 2007, which is expected to total $26.2 million for the Pension
Plan, $3.6 million for the SERP and $39.8 million for the PBOP Plan on a pre-tax basis:
AtDecember 31, 2006 Estimated Expense in 2007
(Millions of Dollars) Pension SERP OPEB Total Pension SERP OPEB Total
Transition obligation $ — $ — $0.4 $0.4 $ — $— $0.2 $0.2
Prior service cost 0.4 — — 0.4 0.1 — — 0.1
Net actuarial loss1.5 0.2 1.9 3.6 1.0 —0.3 1.3
Total $1.9 $0.2 $2.3 $4.4 $1.1 $— $0.5 $1.6
For further information, see Note 14, “Accumulated Other Comprehensive Income/(Loss),” to the consolidated financial statements.
The following actuarial assumptions were used in calculating the plans’ year end funded status:
AtDecember 31,
Pension Benefits and SERP Postretirement Benefits
Balance Sheets 2006 2005 2006 2005
Discount rate 5.90% 5.80% 5.80% 5.65%
Compensation/progression rate 4.00% 4.00% N/A N/A
Health care cost trend rate N/A N/A 9.00% 10.00%
76 NU 2006 ANNUAL REPORT
The incremental impact of implementing SFAS No. 158 on the
consolidated balance sheet at December 31, 2006 is as follows:
Before Adjustments After
Adopting to Adopt Adopting
(Millions of Dollars) SFAS No. 158 SFAS No. 158 SFAS No. 158
Regulatory assets (1) $ 1.6 $405.8 $407.4
Prepaid pension 248.3 (226.7) 21.6
Other deferred debits (1) 0.7 (0.7) —
Total assets 250.6 178.4 429.0
Other current liabilities (2) —(2.0) (2.0)
Deferred taxes, net (97.1) 60.9 (36.2)
Accrued postretirement benefits (14.8) (188.5) (203.3)
Other deferred credits (31.7) (0.3) (32.0)
Total liabilities (143.6) (129.9) (273.5)
Accumulated other comprehensive
loss, net of tax (1) $ (0.2) $ (4.2) $ (4.4)
(1) The regulatory assets and accumulated other comprehensive loss amounts
before adopting SFAS No. 158 represent the regulated and unregulated portions,
respectively, of an additional minimum pension liability recorded for the SERP.
The amount in other deferred debits represents an intangible asset recorded
under SFAS No. 87 to account for a portion of the additional minimum pension
liability recorded for the SERP. This amount was reversed as part of the adoption
of SFAS No. 158.
(2) Amounts reflected in other current liabilities above represent the short-term
portion of the SERP liability related to benefit payments expected to be made
in the next year.