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79
9. Marketable Securities
The following is a summary of NU’s available-for-sale securities related to the
supplemental benefit trust and spent nuclear fuel trust assets, which are recorded at
their fair values and are included in current and long-term marketable securities on the
accompanying consolidated balance sheets.
At December 31,
(Millions of Dollars) 2008 2007
Supplemental benefit trust $ 53.5 $ 68.4
Spent nuclear fuel trust 55.7 55.7
Totals $109.2 $124.1
At December 31, 2008 and 2007, marketable securities are comprised of the following:
At December 31, 2008
Pre-Tax
Gross
Amortized Unrealized Estimated
(Millions of Dollars) Cost(1) Gains Fair Value
Supplemental benefit trust
United States equity securities $ 21.9 $1.1 $ 23.0
Non-United States equity securities 5.6 - 5.6
U.S. government issued debt securities
(Agency and Treasury) 13.1 0.8 13.9
Corporate debt securities 3.3 0.2 3.5
Asset backed securities 3.4 - 3.4
Other 4.1 - 4.1
Total supplemental benefit trust $ 51.4 $2.1 $ 53.5
Spent nuclear fuel trust
Short-term investments and money markets $ 16.3 $ - $ 16.3
U.S. government issued debt securities
(Agency and Treasury) 15.4 0.1 15.5
Corporate debt securities 17.4 0.5 17.9
Asset backed securities 2.4 - 2.4
Other 3.6 - 3.6
Total spent nuclear fuel trust $ 55.1 $0.6 $ 55.7
Total $106.5 $2.7 $109.2
At December 31, 2007
Pre-Tax
Gross
Amortized Unrealized Estimated
(Millions of Dollars) Cost(1) Gains Fair Value
Supplemental benefit trust
United States equity securities $ 23.5 $4.3 $ 27.8
Non-United States equity securities 8.3 - 8.3
U.S. government issued debt securities
(Agency and Treasury) 14.2 0.3 14.5
Corporate debt securities 6.4 0.1 6.5
Asset backed securities 6.3 - 6.3
Other 5.0 - 5.0
Total supplemental benefit trust $ 63.7 $4.7 $ 68.4
Spent nuclear fuel trust
Short-term investments and money markets $ 14.1 $ - $ 14.1
U.S. government issued debt securities
(Agency and Treasury) 0.7 - 0.7
Corporate debt securities 29.2 - 29.2
Asset backed securities 9.2 0.1 9.3
Other 2.4 - 2.4
Total spent nuclear fuel trust $ 55.6 $0.1 $ 55.7
Total $119.3 $4.8 $124.1
(1) Amortized cost amounts are net of unrealized losses that are recorded as other than temporary
impairments.
For the years ended December31, 2008 and 2007, NU recorded pre-tax charges of $15.3
million and $1.9 million, respectively, related to the unrealized losses on securities in the
supplemental benefit trust portfolio, and $2.1 million and $0.6 million, respectively, oset
to the spent nuclear fuel obligation in long-term debt related to the unrealized losses
on securities in the spent nuclear fuel trust. Unrealized losses are considered other than
temporary in nature because they are held in trusts and NU does not have the ability to
hold these securities to maturity.
For information related to the change in unrealized gains included in accumulated other
comprehensive income, see Note 13, “Accumulated Other Comprehensive Income/(Loss),”
to the consolidated financial statements.
For the years ended December 31, 2008, 2007 and 2006, realized gains and losses
recognized on the sale of available-for-sale securities are as follows:
Realized Realized Net Realized
(Millions of Dollars) Gains Losses Gains
2008 $2.5 $(2.2) $0.3
2007 2.8 (1.0) 1.8
2006 5.2 (1.3) 3.9
The spent nuclear fuel trust net realized losses of $0.4 million and $0.3 million for the
years ended December 31, 2008 and 2006, respectively, oset the spent nuclear fuel
obligation in long-term debt. For the years ended December 31, 2008, 2007 and 2006,
all other net realized gains totaling $0.7 million, $1.9 million and $4.2 million, respectively,
are included in other income, net on the accompanying consolidated statements of
income. Included in the realized gain/(losses) is a pre-tax gain of $3.1 million for the