Eversource 2014 Annual Report Download - page 82

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-- The following is a summary of NU's and WMECO's available-for-sale securities. These securities are recorded at fair
value and are included in current and long-term Marketable Securities on the balance sheets.
As of December 31,
2014 2013
Pre-Tax Pre-Tax Pre-Tax Pre-Tax
Amortized Unrealized Unrealized Amortized Unrealized Unrealized
 Cost Gains Losses Fair Value Cost Gains Losses Fair Value
NU
Debt Securities
(1)
$313.0 $7.5 $(0.3) $320.2 $299.2 $2.5 $ (
2.1)
$299.6
Equity Securities
(1)
160.6 73.3 -233.9 163.6 60.5 -224.1
WMECO
Debt Securities
(2)
58.2 -(0.1) 58.1 57.9 - - 57.9
(1) NU's amounts include CYAPC's and YAEC's marketable securities held in nuclear decommissioning trusts of $450.8 million and $424 million
as of December 31, 2014 and 2013, respectively, which are legally restricted and can only be used for the costs of decommissioning of the
nuclear power plants owned by these companies. Unrealized gains and losses for the nuclear decommissioning trusts are recorded in Marketable
Securities with the corresponding offset to Other Long-Term Liabilities on the balance sheets, with no impact on the statements of income. All
of the equity securities accounted for as available-for-sale securities are held in the CYAPC and YAEC trusts.
(2) Unrealized gains and losses on debt securities held by WMECO are recorded in Marketable Securities with the corresponding offset to Other
Long-Term Assets on the balance sheets.
-- There have been no significant unrealized losses, other-than-temporary impairments or
credit losses for NU or WMECO. 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 debt
securities, underlying collateral and expected future cash flows are also evaluated.
Realized gains and losses on available-for-sale securities are recorded in Other Income, Net for NU's benefit trust, Other
Long-Term Assets for WMECO, and offset in Other Long-Term Liabilities for CYAPC and YAEC. NU utilizes the specific identification basis
method for the NU benefit trust and the average cost basis method for the WMECO trust and the CYAPC and YAEC nuclear decommissioning trusts
to compute the realized gains and losses on the sale of available-for-sale securities.
: As of December 31, 2014, the contractual maturities of available-for-sale debt securities are as follows:
NU WMECO
Amortized Amortized
 Cost Fair Value Cost Fair Value
Less than one year
(1)
$55.0 $55.0 $28.7 $28.7
One to five years 88.8 89.1 25.8 25.8
Six to ten years 66.0 67.7 0.7 0.7
Greater than ten years 103.2 108.4 3.0 2.9
Total Debt Securities $313.0 $320.2 $58.2 $58.1
(1) Amounts in the Less than one year NU category include securities in the CYAPC and YAEC nuclear decommissioning trusts, which are
restricted and are classified in long-term Marketable Securities on the balance sheets.
The following table presents the marketable securities recorded at fair value on a recurring basis by the level in which
they are classified within the fair value hierarchy:
NU WMECO
As of December 31, As of December 31,
 2014 2013 2014 2013
Level 1:
Mutual Funds and Equities $319.0 $281.3 $ - $ -
Money Market Funds 24.9 32.9 4.3 10.9
Total Level 1 $343.9 $314.2 $4.3 $10.9
Level 2:
U.S. Government Issued Debt Securities
(Agency and Treasury) $51.3 $61.4 $ - $ 6.8
Corporate Debt Securities 49.1 53.6 14.7 15.1
Asset-Backed Debt Securities 54.1 30.4 14.5 9.0
Municipal Bonds 116.3 105.5 13.0 11.2
Other Fixed Income Securities 24.5 15.8 11.6 4.9
Total Level 2 $295.3 $266.7 $53.8 $47.0
Total Marketable Securities $639.2 $580.9 $58.1 $57.9
U.S. government issued debt securities are valued using market approaches that incorporate transactions for the same or similar bonds and
adjustments for yields and maturity dates. Corporate debt securities are valued using a market approach, utilizing recent trades of the same or similar
instrument and also incorporating yield curves, credit spreads and specific bond terms and conditions. Asset-backed debt securities include
collateralized mortgage obligations, commercial mortgage backed securities, and securities collateralized by auto loans, credit card loans or