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102
21. GOODWILL
Eversource recorded approximately $3.2 billion of goodwill in connection with the 2012 merger with NSTAR and $0.3 billion of goodwill related to
the acquisition of the parent of Yankee Gas in 2000.
Goodwill is not subject to amortization, however is subject to a fair value based assessment for impairment at least annually and whenever facts or
circumstances indicate that there may be an impairment. A resulting write-down, if any, would be charged to Operating Expenses. Eversource’s
reporting units for the purpose of testing goodwill for impairment are Electric Distribution, Electric Transmission and Natural Gas Distribution.
These reporting units are consistent with the operating segments underlying the reportable segments identified in Note 20, “Segment Information,” to
the financial statements.
The annual goodwill assessment included an evaluation of the Company’s share price and credit ratings, analyst reports, financial performance, cost
and risk factors, long-term strategy, growth and future projections, as well as macroeconomic, industry and market conditions. Eversource completed
its annual goodwill impairment test for each of its reporting units as of October 1, 2015 and determined that no impairment existed. There were no
events subsequent to October 1, 2015 that indicated impairment of goodwill.
There were no changes to the goodwill balance or the allocation of goodwill as of December 31, 2015 or 2014. The following table presents
goodwill by reportable segment:
As of December 31, 2015 and 2014
Electric Electric Natural Gas
(Billions of Dollars)
Distribution Transmission Distribution Total
Goodwill
$
2.5 $
0.6 $
0.4 $
3.5
22. VARIABLE INTEREST ENTITIES
The Company’s variable interests outside of the consolidated group are not material and consist of contracts that are required by regulation and
provide for regulatory recovery of contract costs and benefits through customer rates. Eversource, CL&P and NSTAR Electric hold variable interests
in variable interest entities (VIEs) through agreements with certain entities that own single renewable energy or peaking generation power plants and
with other independent power producers. Eversource, CL&P and NSTAR Electric do not control the activities that are economically significant to
these VIEs or provide financial or other support to these VIEs. Therefore, Eversource, CL&P and NSTAR Electric do not consolidate any power
plant VIEs.
23. QUARTERLY FINANCIAL DATA (UNAUDITED)
Eversource
Quarter Ended
(Millions of Dollars, except
per share information)
2015 2014
March 31, June 30, September 30,
December 31, March 31, June 30, September 30,
December 31,
Operating Revenues
$
2,513.4 $
1,817.1 $
1,933.1
$
1,691.2 $
2,290.6 $
1,677.6 $
1,892.5
$
1,881.2
Operating Income
497.5
412.0
469.2
385.5
467.7
294.0
440.9
430.2
Net Income
255.1
209.4
237.8
183.7
237.8
129.2
236.5
223.6
Net Income Attributable
to Common Shareholders
253.3
207.5
235.9
181.8
236.0
127.4
234.6
221.5
Basic EPS (a) $
0.80 $
0.65 $
0.74
$
0.57 $
0.75 $
0.40 $
0.74
$
0.69
Diluted EPS (a) $
0.80 $
0.65 $
0.74
$
0.57 $
0.74 $
0.40 $
0.74
$
0.69
(a) The summation of quarterly EPS data may not equal annual data due to rounding.
Quarter Ended
2015 2014
(Millions of Dollars) March 31, June 30, September 30,
December 31, March 31, June 30, September 30,
December 31,
CL&P
Operating Revenues
$
804.9 $
666.6 $
704.3
$
626.9 $
734.6 $
587.3 $
695.6
$
675.1
Operating Income
141.8
154.0
161.1
154.2
158.0
92.1
146.2
159.0
Net Income
69.2
78.8
80.2
71.2
79.3
37.4
83.9
87.2
NSTAR Electric
Operating Revenues
$
766.8 $
617.2 $
750.7
$
546.6 $
666.2 $
561.5 $
727.9
$
581.1
Operating Income
159.5
151.4
214.2
117.7
118.4
121.5
206.6
132.0
Net Income
83.6
82.0
118.6
60.3
58.1
60.1
115.6
69.3
PSNH
Operating Revenues
$
284.8 $
241.9 $
234.4
$
211.1 $
299.8 $
211.6 $
223.7
$
224.4
Operating Income
63.2
54.1
63.6
49.3
64.0
49.0
56.4
60.0
Net Income
32.0
27.9
32.5
22.0
32.6
24.1
28.2
29.0
WMECO
Operating Revenues
$
152.9 $
125.2 $
125.1
$
114.9 $
137.4 $
108.3 $
118.1
$
129.6
Operating Income
28.6
28.9
30.0
28.0
34.7
17.7
31.2
34.0
Net Income
13.2
14.2
15.0
14.1
18.1
7.0
14.7
18.0