Eversource 2010 Annual Report Download - page 133

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The changes in the components of other comprehensive income/(loss) are reported net of the following income tax effects:
(Millions of Dollars)
NU 2010 2009 2008
Qualified Cash Flow Hedging Instruments $ (0.2) $ (0.2) $ 4.5
Change in Unrealized Gains/(Losses) on Other Securities (0.2) 0.7 1.1
Pension, SERP and PBOP Benefits - 2.9 24.2
Total $ (0.4) $ 3.4 $ 29.8
CL&P
Qualified Cash Flow Hedging Instruments $ (0.3) $ (0.3) $ 2.2
PSNH
Qualified Cash Flow Hedging Instruments $ (0.1) $ - $ 1.0
WMECO
Qualified Cash Flow Hedging Instruments $ - $ 0.1 $ 0.1
It is estimated that a charge of $0.2 million will be reclassified from Accumulated Other Comprehensive Income/(Loss) as a decrease to
earnings over the next 12 months as a result of amortization of the interest rate swap agreements, which have been settled. Included
in this amount are estimated charges of $0.4 million and $0.1 million for CL&P and PSNH, respectively, and a benefit of $0.1 million for
WMECO. As of December 31, 2010, it is estimated that a pre-tax amount of $6 million included in the Accumulated Other
Comprehensive Income/(Loss) balance will be reclassified as a decrease to Net Income over the next 12 months related to Pension,
SERP and PBOP adjustments for NU.
17. DIVIDEND RESTRICTIONS
NU parent's ability to pay dividends may be affected by certain state statutes, the ability of its subsidiaries to pay common dividends
and the leverage restriction tied to its consolidated total debt to total capitalization ratio requirement in its revolving credit agreement.
CL&P, PSNH, and WMECO are subject to Section 305 of the Federal Power Act that makes it unlawful for a public utility to make or
pay a dividend from any funds "properly included in its capital account." Management believes that this Federal Power Act restriction,
as applied to CL&P, PSNH and WMECO, would not be construed or applied by the FERC to prohibit the payment of dividends for lawful
and legitimate business purposes from retained earnings. In addition, certain state statutes may impose additional limitations on such
companies and on Yankee Gas. Such state law restrictions do not restrict payment of dividends from retained earnings or net income.
CL&P, PSNH, WMECO and Yankee Gas also have a revolving credit agreement that imposes leverage restrictions including
consolidated total debt to total capitalization ratio requirements. The Retained Earnings balances subject to these leverage restrictions
are $1.453 billion for NU, $734.6 million for CL&P, $347.5 million for PSNH and $98.8 million for WMECO as of December 31, 2010.
PSNH is further required to reserve an additional amount under its FERC hydroelectric license conditions. As of December 31, 2010,
approximately $11.6 million of PSNH's Retained Earnings is subject to restriction under its FERC hydroelectric license conditions. As of
December 31, 2010, NU, CL&P, PSNH, WMECO and Yankee Gas were in compliance with all such provisions of its credit agreement
that may restrict the payment of dividends.
18. COMMON SHARES
The following table sets forth the NU common shares and the shares of CL&P, PSNH and WMECO common stock authorized and
issued and the respective par values as of December 31, 2010 and 2009:
Shares
Per Share Authorized Issued
Par Value 2010 and 2009 2010 2009
NU $ 5 225,000,000 195,781,740 195,455,214
CL&P $ 10 24,500,000 6,035,205 6,035,205
PSNH $ 1 100,000,000 301 301
WMECO $ 25 1,072,471 434,653 434,653
On March 20, 2009, NU issued approximately 19 million common shares. As of December 31, 2010 and 2009, 19,333,659 and
19,708,136 NU common shares were held as treasury shares, respectively.