NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

June 30,

December 31,

(Thousands of Dollars)

2014 

2013 

LIABILITIES AND CAPITALIZATION

Current Liabilities:

Notes Payable

$

 905,000 

$

 1,093,000 

Long-Term Debt - Current Portion

 395,583 

 533,346 

Accounts Payable

 561,699 

 742,251 

Regulatory Liabilities

 359,921 

 204,278 

Other Current Liabilities

 580,605 

 702,776 

Total Current Liabilities

 2,802,808 

 3,275,651 

Deferred Credits and Other Liabilities:

Accumulated Deferred Income Taxes

 4,270,050 

 4,029,026 

Regulatory Liabilities

 503,955 

 502,984 

Derivative Liabilities

 449,439 

 624,050 

Accrued Pension, SERP and PBOP

 825,001 

 896,844 

Other Long-Term Liabilities

 882,688 

 923,053 

Total Deferred Credits and Other Liabilities

 6,931,133 

 6,975,957 

Capitalization:

Long-Term Debt

 8,147,129 

 7,776,833 

Noncontrolling Interest - Preferred Stock of Subsidiaries

 155,568 

 155,568 

Equity:

  Common Shareholders' Equity:

Common Shares

 1,666,637 

 1,665,351 

Capital Surplus, Paid In

 6,201,555 

 6,192,765 

Retained Earnings

 2,241,025 

 2,125,980 

Accumulated Other Comprehensive Loss

 (41,507)

 (46,031)

Treasury Stock

 (313,903)

 (326,537)

Common Shareholders' Equity

 9,753,807 

 9,611,528 

Total Capitalization

 18,056,504 

 17,543,929 

Total Liabilities and Capitalization

$

 27,790,445 

$

 27,795,537 

The data contained in this report is preliminary and is unaudited.  This report is being submitted for the sole purpose of providing information to present shareholders about Northeast Utilities and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.  

NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(Thousands of Dollars, Except Share Information)

2014 

2013 

2014 

2013 

Operating Revenues

$

 1,677,614 

$

 1,635,862 

$

 3,968,204 

$

 3,630,885 

Operating Expenses:

Purchased Power, Fuel and Transmission

 624,211 

 488,302 

 1,602,362 

 1,236,111 

Operations and Maintenance

 373,234 

 357,169 

 724,922 

 703,261 

Depreciation

 152,207 

 159,553 

 303,014 

 314,530 

Amortization of Regulatory Assets/(Liabilities), Net

 (3,542)

 54,574 

 54,356 

 108,623 

Amortization of Rate Reduction Bonds

 - 

 8,082 

 - 

 42,581 

Energy Efficiency Programs

 102,711 

 94,142 

 241,536 

 199,913 

Taxes Other Than Income Taxes

 134,803 

 123,464 

 280,335 

 256,345 

Total Operating Expenses

 1,383,624 

 1,285,286 

 3,206,525 

 2,861,364 

Operating Income

 293,990 

 350,576 

 761,679 

 769,521 

Interest Expense:

Interest on Long-Term Debt

 87,491 

 85,999 

 174,868 

 171,294 

Other Interest

 5,004 

 851 

 7,603 

 (8,188)

Interest Expense

 92,495 

 86,850 

 182,471 

 163,106 

Other Income, Net

 5,526 

 4,944 

 7,194 

 12,710 

Income Before Income Tax Expense

 207,021 

 268,670 

 586,402 

 619,125 

Income Tax Expense

 77,774 

 95,606 

 219,319 

 216,093 

Net Income

 129,247 

 173,064 

 367,083 

 403,032 

Net Income Attributable to Noncontrolling Interests

 1,880 

 2,043 

 3,759 

 3,922 

Net Income Attributable to Controlling Interest

$

 127,367 

$

 171,021 

$

 363,324 

$

 399,110 

Basic Earnings Per Common Share

$

 0.40 

$

 0.54 

$

 1.15 

$

 1.27 

Diluted Earnings Per Common Share

$

 0.40 

$

 0.54 

$

 1.15 

$

 1.26 

Dividends Declared Per Common Share

$

 0.39 

$

 0.37 

$

 0.79 

$

 0.74 

Weighted Average Common Shares Outstanding:

Basic

 315,950,510 

 315,154,130 

 315,742,511 

 315,141,956 

Diluted

 317,112,801 

 315,962,619 

 317,002,461 

 315,982,578 

The data contained in this report is preliminary and is unaudited.  This report is being submitted for the sole purpose of providing information to present shareholders about Northeast Utilities and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.

NORTHEAST UTILITIES AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Six Months Ended June 30,

(Thousands of Dollars)

2014 

2013 

Operating Activities:

Net Income

$

 367,083 

$

 403,032 

Adjustments to Reconcile Net Income to Net Cash Flows

Provided by Operating Activities:

 Depreciation

 303,014 

 314,530 

 Deferred Income Taxes

 133,149 

 256,294 

 Pension, SERP and PBOP Expense

 47,558 

 97,671 

 Pension and PBOP Contributions

 (40,640)

 (122,826)

 Regulatory Over/(Under) Recoveries, Net

 164,388 

 (4,793)

 Amortization of Regulatory Assets, Net

 54,356 

 108,623 

 Amortization of Rate Reduction Bonds

 - 

 42,581 

 Proceeds from DOE Damages Claim, Net

 125,658 

 - 

 Other

 (9,359)

 19,932 

Changes in Current Assets and Liabilities:

 Receivables and Unbilled Revenues, Net

 (57,570)

 (101,229)

 Fuel, Materials and Supplies

 26,633 

 10,964 

 Taxes Receivable/Accrued, Net

 (62,900)

 (58,350)

 Accounts Payable

 (112,954)

 (127,379)

 Other Current Assets and Liabilities, Net

 (41,753)

 (70,026)

Net Cash Flows Provided by Operating Activities

 896,663 

 769,024 

Investing Activities:

Investments in Property, Plant and Equipment

 (724,043)

 (700,252)

Proceeds from Sales of Marketable Securities

 256,309 

 342,251 

Purchases of Marketable Securities

 (257,168)

 (424,096)

Decrease in Special Deposits

 2,894 

 65,121 

Other Investing Activities

 579 

 (843)

Net Cash Flows Used in Investing Activities

 (721,429)

 (717,819)

Financing Activities:

Cash Dividends on Common Shares

 (237,161)

 (232,068)

Cash Dividends on Preferred Stock

 (3,759)

 (3,922)

Decrease in Short-Term Debt

 (213,000)

 (720,500)

Issuance of Long-Term Debt

 650,000 

 1,350,000 

Retirements of Long-Term Debt

 (376,650)

 (360,635)

Retirements of Rate Reduction Bonds

 - 

 (82,139)

Other Financing Activities

 (3,932)

 (11,634)

Net Cash Flows Used in Financing Activities

 (184,502)

 (60,898)

Net Decrease in Cash and Cash Equivalents

 (9,268)

 (9,693)

Cash and Cash Equivalents - Beginning of Period

 43,364 

 45,748 

Cash and Cash Equivalents - End of Period

$

 34,096 

$

 36,055 

The data contained in this report is preliminary and is unaudited.  This report is being submitted for the sole purpose of providing information to present shareholders about Northeast Utilities and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.