Company: CNLHP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000072741-25-000007
Chunk: 278

Company: CONNECTICUT LIGHT & POWER CO
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 278
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 the Preferred Stock of NSTAR Electric are considered to be temporary equity and have been classified between liabilities and permanent shareholders' equity on the balance sheets of Eversource, CL&P and NSTAR Electric due to a provision in the preferred stock agreements of both CL&P and NSTAR Electric that grant preferred stockholders the right to elect a majority of the CL&P and NSTAR Electric Boards of Directors, respectively, should certain conditions exist, such as if preferred dividends are in arrears for a specified amount of time.  The Net Income reported in the statements of income and cash flows represents net income prior to apportionment to noncontrolling interests, which is represented by dividends on preferred stock of CL&P and NSTAR Electric.

90

Eversource's utility subsidiaries' electric, natural gas and water distribution and transmission businesses are subject to rate-regulation that is based on cost recovery and meets the criteria for application of accounting guidance for entities with rate-regulated operations, which considers the effect of regulation on the differences in the timing of the recognition of certain revenues and expenses from those of other businesses and industries.  See Note 2, "Regulatory Accounting," for further information.  As of December 31, 2024 and 2023, Eversource's carrying amount of goodwill was $3.57 billion and $4.53 billion, respectively.  Eversource performs an assessment for possible impairment of its goodwill at least annually.  Eversource completed its annual goodwill impairment assessment for each of its reporting units as of October 1, 2024, and performed an interim goodwill impairment test in the fourth quarter of 2024. Eversource recorded a goodwill impairment charge of $297 million in 2024 as a result of the likely sale of Aquarion at a loss.  See Note 25, "Goodwill," for further information.  The assets and liabilities of the Aquarion water distribution business, including remaining goodwill of $662.5 million, met the criteria to be classified as held for sale as of December 31, 2024.  Unless otherwise specified, the amounts and information in the notes presented do not include assets and liabilities that have been reclassified as held for sale.  See Note 24, "Assets Held for Sale," for further information.Certain reclassifications of prior year data were made in the accompanying financial statements to conform to the current year presentation.C.     Accounting StandardsAccounting Standards Recently Adopted:  On January 1