Eversource 2014 Annual Report Download - page 74

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P. Supplemental Cash Flow Information
NU As of and For the Years Ended December 31,
 2014 2013 2012
(1)
Cash Paid/(Received) During the Year for:
Interest, Net of Amounts Capitalized $349.6 $343.3 $356.5
Income Taxes 334.2 50.0 (12.8)
Non
-Cash Investing Activities:
Plant Additions Included in Accounts Payable (As of) 181.9 193.1 160.6
(1)
NSTAR amounts were included in NU beginning April 10, 2012.
As of and For the Years Ended December 31,
2014 2013 2012
NSTAR NSTAR NSTAR
 CL&P Electric PSNH WMECO CL&P Electric PSNH WMECO CL&P Electric PSNH WMECO
Cash Paid/(Received) During the Year for:
Interest, Net of Amounts Capitalized $144.1 $75.3 $41.1 $25.9 $131.6 $75.8 $43.3 $25.8 $129.4 $94.6 $49.8 $25.8
Income Taxes 135.4 217.1 2.3 25.1 55.0 163.4 (30.1) (69.0) (42.0) 88.1 14.7 (8.4)
Non
-Cash Investing Activities:
Plant Additions Included in
Accounts Payable (As of) 63.5 34.6 39.3 14.2 51.4 57.0 34.9 19.5 42.8 50.0 16.8 30.0
In 2014, as a result of damages awarded to the Yankee Companies for spent nuclear fuel lawsuits against the DOE described in Note 11C,
"Commitments and Contingencies -Contractual Obligations -Yankee Companies," NU received total proceeds of $132.1 million, which were net of
$80.6 million in proceeds CYAPC and YAEC returned to non-affiliated member companies.
The merger of NU with NSTAR on April 10, 2012 represented a significant non-cash transaction. Refer to Note 21, "Merger of NU and NSTAR,"
for further information.
Q. Related Parties
NUSCO, NU's service company, provides centralized accounting, administrative, engineering, financial, information technology, legal, operational,
planning, purchasing, and other services to NU's companies. The Rocky River Realty Company, Renewable Properties, Inc. and Properties, Inc.,
three other NU subsidiaries, construct, acquire or lease some of the property and facilities used by NU's companies.
As of both December 31, 2014 and 2013, CL&P, PSNH and WMECO had long-term receivables from NUSCO in the amounts of $25 million, $3.8
million and $5.5 million, respectively, which were included in Other Long-Term Assets on the balance sheets. These amounts related to the funding
of investments held in trust by NUSCO in connection with certain postretirement benefits for CL&P, PSNH and WMECO employees and have been
eliminated in consolidation on the NU financial statements.
Included in the CL&P, NSTAR Electric, PSNH and WMECO balance sheets as of December 31, 2014and 2013were Accounts Receivable from
Affiliated Companies and Accounts Payable to Affiliated Companies relating to transactions between CL&P, NSTAR Electric, PSNH and WMECO
and other subsidiaries that are wholly-owned by NU. These amounts have been eliminated in consolidation on the NU financial statements.
R. Severance Benefits
For the years ended December 31, 2014 and 2013, NU recorded severance benefit expenses of $15 million and $9.7 million, respectively, in
connection with the partial outsourcing of information technology functions and facilities closures, as well as ongoing post-merger integration. As of
December 31, 2014 and 2013, the severance accrual totaled $10.4 million and $14.7 million, respectively, and was included in Other Current
Liabilities on the balance sheets.
2. REGULATORY ACCOUNTING
The rates charged to the customers of NU's Regulated companies are designed to collect each company's costs to provide service, including a return
on investment. Therefore, the accounting policies of the Regulated companies follow the application of accounting guidance for entities with rate-
regulated operations and reflect the effects of the rate-making process.
Management believes it is probable that each of the Regulated companies will recover their respective investments in long-lived assets, including
regulatory assets. If management were to determine that it could no longer apply the accounting guidance applicable to rate-regulated enterprises to
any of the Regulated companies'operations, or that management could not conclude it is probable that costs would be recovered from customers in
future rates, the costs would be charged to net income in the period in which the determination is made.