Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 403

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 403
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 down parent company debt.The assets and liabilities of the Aquarion water distribution business met the criteria to be classified as held for sale and have been classified separately as current or long-term assets and liabilities held for sale on the Eversource balance sheet as of December 31, 2024.  As Eversource concluded this is the sale of a business, all goodwill held by the water distribution reporting unit was included in the carrying amount of the business and is also classified within assets held for sale.  Long-term debt will be repaid by Eversource upon closing and is therefore excluded from liabilities held for sale.  Assets and liabilities classified as held for sale are measured at the lower of carrying amount or fair value less costs to sell.  In the fourth quarter of 2024, upon classifying the assets and liabilities as held for sale, Eversource concluded that the likely sale of Aquarion at a loss resulted in the requirement to test water distribution goodwill for impairment.  Eversource performed an impairment test by comparing the fair value of the business to its carrying value and recorded a goodwill impairment of $297 million, as the estimated fair value of the business based on the anticipated sale was less than the carrying value.  The fair value included future cash outflows of approximately $140 million of estimated income taxes as a result of the transaction.  The goodwill impairment charge is presented separately within Operating Income on the Eversource statement of income for the year ended December 31, 2024.  The water distribution business did not and will not meet the criteria to be presented as a discontinued operation. As of December 31, 2024, the major classes of Aquarion’s assets and liabilities presented in current and long-term Assets Held for Sale and Liabilities Held for Sale on the Eversource balance sheet, which are included in the Water Distribution reportable segment, were as follows: (Millions of Dollars)Restricted Cash$5.8 Receivables, Net14.4 Unbilled Revenues11.5 Prepayments and Other Current Assets24.6    Total Current Assets Held for Sale$56.3 Property, Plant and Equipment, Net$1,885.2 Regulatory Assets51.2 Goodwill662.5 Other Long-Term Assets12.2    Total Long-Term Assets Held for Sale$2,611.1 Accounts Payable$24.2 Other Current Liabilities28.4    Total Current