The following table presents reclassifications out of accumulated other comprehensive income
for the years ended December 31, 2018 and 2017:
Amounts Reclassified Affected Line Item in
Details about Accumulated Other from Accumulated Other the Statement Where
Comprehensive Income Components Comprehensive Income Net Income is Presented
(in thousands) 2018 2017
Gain (loss) on cash flow hedges
Interest rate contracts $ 59 § 77 Interest expense
(24) (31) Tax expense
Amounts reclassified from accumulated
other comprehensive income $ 35. $ 46 Net of tax
Note 13 — Transaction with the City of Nashua
On January 25, 2012, in full settlement of an ongoing Eminent Domain lawsuit filed by the
City of Nashua (“City”) and with the approval of the New Hampshire Public Utilities
Commission (““NHPUC”), the City acquired all of the outstanding shares of Pennichuck
Corporation (“Pennichuck’”) and, thereby, indirect acquisition of its regulated subsidiaries. The
total amount of the acquisition was $150.6 million (“Acquisition Price”) of which $138.4
million was for the purchase of the outstanding shares, $5.0 million for the establishment of a
Rate Stabilization Fund, $2.6 million for legal and due diligence costs, $2.3 million for
severance costs, $1.3 million for underwriting fees, and $1.0 million for bond discount and
issue costs. The entire purchase of $150.6 million was funded by General Obligation Bonds
(“Bonds”) issued by the City of Nashua. Pennichuck is not a party to the Bonds and has not
guaranteed nor is obligated in any manner for the repayment of the Bonds. Pennichuck remains
an independent corporation with an independent Board of Directors, with the City of Nashua
as its sole shareholder.
Pennichuck Water Works, Inc. (“PWW”), Pennichuck East Utility, Inc. (“PEU”), Pittsfield
Aqueduct Company, Inc. (“PAC”), Pennichuck Water Service Corporation, and The
Southwood Corporation will continue as subsidiaries of Pennichuck Corporation and PWW,
PEU and PAC will continue as regulated companies under the jurisdiction of the New
Hampshire Public Utilities Commission. The terms of the merger and the requisite accounting
and rate-setting mechanisms were agreed to in the NHPUC Order 25,292 (“PUC Order”) dated
November 23, 2011.
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