Eversource 2010 Annual Report Download - page 105

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The following tables present the ARO asset, the related accumulated depreciation, the regulatory asset, and the ARO liabilities as of
December 31, 2010 and 2009:
As of December 31, 2010 As of December 31, 2009
(Millions of Dollars)
NU
ARO
Asset
Accumulated
Depreciation
of ARO Asset
Regulatory
Asset
ARO
Liabilities
ARO
Asset
Accumulated
Depreciation
of ARO Asset
Regulatory
Asset
ARO
Liabilities
A
sbestos $ 2.6 $ (1.7) $ 22.8 $ (25.1) $ 2.7 $ (1.7) $ 21.8 $ (23.9)
Hazardous Contamination 4.9 (1.5) 17.3 (21.5) 4.9 (1.4) 16.2 (20.2)
Other AROs 2.4 (1.0) 5.2 (6.7) 2.6 (1.2) 4.9 (6.5)
Total AROs $ 9.9 $ (4.2) $ 45.3 $ (53.3) $ 10.2 $ (4.3) $ 42.9 $ (50.6)
CL&P
A
sbestos $ 1.6 $ (1.0) $ 13.2 $ (13.8) $ 1.6 $ (1.0) $ 12.6 $ (13.2)
Hazardous Contamination 3.8 (1.1) 10.1 (12.8) 3.9 (1.1) 9.4 (12.2)
Other AROs 2.0 (0.9) 1.6 (2.7) 2.4 (1.0) 1.8 (3.2)
Total AROs $ 7.4 $ (3.0) $ 24.9 $ (29.3) $ 7.9 $ (3.1) $ 23.8 $ (28.6)
PSNH
A
sbestos $ 0.9 $ (0.5) $ 7.7 $ (9.3) $ 0.9 $ (0.5) $ 7.4 $ (8.7)
Hazardous Contamination 0.5 (0.3) 6.2 (7.2) 0.5 (0.3) 5.9 (6.7)
Other AROs - - 0.8 (1.1) - - 0.7 (1.0)
Total AROs $ 1.4 $ (0.8) $ 14.7 $ (17.6) $ 1.4 $ (0.8) $ 14.0 $ (16.4)
WMECO
A
sbestos $ 0.2 $ (0.1) $ 1.9 $ (2.0) $ 0.2 $ (0.1) $ 1.8 $ (1.9)
Hazardous Contamination 0.6 (0.2) 1.1 (1.5) 0.5 (0.1) 1.0 (1.4)
Other AROs 0.1 - - (0.1) - - - -
Total AROs $ 0.9 $ (0.3) $ 3.0 $ (3.6) $ 0.7 $ (0.2) $ 2.8 $ (3.3)
A reconciliation of the beginning and ending carrying amounts of Regulated companies' ARO liabilities are as follows:
As of December 31,
2010 2009
(Millions of Dollars) NU NU
Balance as of Beginning of Year $ (50.6) $ (50.6)
Liabilities Incurred During the Year (0.2) -
Liabilities Settled During the Year 1.2 2.3
A
ccretion (3.3) (3.3)
Revisions in Estimated Cash Flows (0.4) 1.0
Balance as of End of Year $ (53.3) $ (50.6)
As of December 31,
2010 2009
(Millions of Dollars) CL&P PSNH WMECO CL&P PSNH WMECO
Balance as of Beginning of Year $ (28.6) $ (16.4) $ (3.3) $ (28.7) $ (15.9) $ (3.4)
Liabilities Incurred During the Year (0.1) - (0.1) - - -
Liabilities Settled During the Year 1.2 - - 2.0 - 0.3
A
ccretion (1.8) (1.1) (0.2) (1.9) (1.0) (0.2)
Revisions in Estimated Cash Flows - (0.1) - - 0.5 -
Balance as of End of Year $ (29.3) $ (17.6) $ (3.6) $ (28.6) $ (16.4) $ (3.3)
7. GOODWILL AND OTHER INTANGIBLE ASSETS (NU)
In accordance with GAAP, goodwill and intangible assets deemed to have indefinite useful lives are reviewed for impairment at least
annually by applying a fair value-based test. NU uses October 1st as the annual goodwill impairment testing date. However, if an event
occurs or circumstances change that would indicate that goodwill might be impaired, NU management would test the goodwill between
the annual testing dates. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair
value and if the implied fair value of goodwill based on the estimated fair value of the reporting unit is less than the carrying amount.
NU's reporting units are consistent with the operating segments underlying the reportable segments identified in Note 21, "Segment
Information," to the consolidated financial statements. The only reporting unit that maintains goodwill is the Yankee Gas reporting unit,
which is classified under the Regulated companies – natural gas reportable segment and related to the acquisition of Yankee Energy
System, Inc., parent of Yankee Gas. Such goodwill is not being recovered from the customers of Yankee Gas. The goodwill balance
held by the Yankee Gas reporting unit as of December 31, 2010 and 2009 is $287.6 million.
NU completed its impairment analysis of the Yankee Gas goodwill balance as of October 1, 2010 and determined that no impairment
exists. In completing this analysis, the fair value of the reporting unit was estimated using a discounted cash flow methodology and
analyses of comparable companies and transactions.