Eversource 2010 Annual Report Download - page 103

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86
As of December 31, 2009
(Millions of Dollars)
Amortized
Cost
Pre-Tax
Unrealized
Gains (1)
Pre-Tax
Unrealized
Losses (1)
Fair Value
NU Supplemental Benefit Trust
U.S. Government Issued Debt Securities
(Agency and Treasury) $ 12.8 $ 0.3 $ (0.2) $ 12.9
Corporate Debt Securities 7.4 0.4 (0.1) 7.7
A
sset Backed Debt Securities 5.2 0.1 (0.1) 5.2
Municipal Bonds 0.2 - - 0.2
Money Market Funds and Other 3.0 - - 3.0
Total NU Supplemental Benefit Trust $ 28.6 $ 0.8 $ (0.4) $ 29.0
WMECO Spent Nuclear Fuel Trust
U.S. Government Issued Debt Securities
(Agency and Treasury) $ 17.0 $ - $ - $ 17.0
Corporate Debt Securities 17.4 0.1 (0.1) 17.4
A
sset Backed Debt Securities 1.1 - (0.2) 0.9
Municipal Bonds 10.6 - - 10.6
Money Market Funds and Other 10.9 - - 10.9
Total WMECO Spent Nuclear Fuel Trust $ 57.0 $ 0.1 $ (0.3) $ 56.8
Total NU $ 85.6 $ 0.9 $ (0.7) $ 85.8
(1) Unrealized gains and losses on debt securities for the NU supplemental benefit trust and WMECO spent nuclear fuel trust are
recorded in Accumulated Other Comprehensive Income/(Loss) and Other Long-Term Assets, respectively, on the accompanying
consolidated balance sheets. For information related to the change in unrealized gains and losses for the NU supplemental benefit
trust included in Accumulated Other Comprehensive Income/(Loss), see Note 16, "Accumulated Other Comprehensive
Income/(Loss)," to the consolidated financial statements.
Unrealized Losses and Other-than-Temporary Impairment: There have not been significant unrealized losses, other-than-temporary
impairments or credit losses for the NU supplemental benefit trust or WMECO spent nuclear fuel trust. Factors considered in
determining whether a credit loss exists include the duration and severity of the impairment, adverse conditions specifically affecting the
issuer, and the payment history, ratings and rating changes of the security. For asset backed securities, underlying collateral and
expected future cash flows are also evaluated. All but one of the corporate and asset backed securities held in the NU supplemental
benefit trust are rated investment grade. All but one of the securities in the WMECO spent nuclear fuel trust are rated investment grade
and credit losses have been recorded for those securities that are below investment grade.
Contractual Maturities: As of December 31, 2010, the contractual maturities of available-for-sale debt securities are as follows:
NU WMECO
(Millions of Dollars) Amortized
Cost
Fair Value
Amortized
Cost
Fair Value
Less than one year $ 36.0 $ 36.1 $ 33.2 $ 33.2
One to five years 15.1 15.2 9.1 9.1
Six to ten years 6.6 7.0 1.0 1.0
Greater than ten years 28.6 29.0 13.9 13.8
Total Debt Securities $ 86.3 $ 87.3 $ 57.2 $ 57.1
Sales of Securities: For the years ended December 31, 2010, 2009 and 2008, realized gains and losses recognized on the sale of
available-for-sale securities are as follows:
NU WMECO
(Millions of Dollars) Realized
Gains
Realized
Losses
Net Realized
Gains Realized
Gains
Realized
Losses
Net Realized
Losses
2010 $ 0.6 $ (0.4) $ 0.2 $ - $ (0.2) $ (0.2)
2009 15.9 (6.2) 9.7 - (0.8) (0.8)
2008 2.5 (2.2) 0.3 0.2 (0.6) (0.4)
Realized gains and losses on available-for-sale securities are recorded in Other Income, Net for the NU supplemental benefit trust and
in Other Long-Term Assets for the WMECO spent nuclear fuel trust. NU utilizes the specific identification basis method for the NU
supplemental benefit trust securities and the average cost basis method for the WMECO spent nuclear fuel trust to compute the
realized gains and losses on the sale of available-for-sale securities. Proceeds from the sale of these securities, including proceeds
from short-term investments, totaled $174.9 million, $208.9 million and $259.4 million for the years ended December 31, 2010, 2009
and 2008, respectively. WMECO's portion of these proceeds totaled $114.2 million, $106.3 million and $169.1 million for the years
ended December 31, 2010, 2009 and 2008, respectively. Proceeds from the sales of securities are used to purchase new securities.