Board Of Aldermen

2019

11.

Long-Term Debt

Long-term debt as of December 31, 2020 and 2019 consisted of the following:

The Company has accumulated New Hampshire net operating losses. The New Hampshire tax
benefit of the cumulative net operating loss is approximately $1.4 million which begins to
expire in 2023 and is included in deferred income taxes in the Consolidated Balance Sheet as
of December 31, 2020.

As of December 31, 2020 and 2019, it is estimated that approximately $476,000 and
$476,000, respectively, of cumulative federal alternative minimum tax credits may be carried
forward indefinitely as a credit against our regular tax liability.

The following is a reconciliation between the
effective income tax rate for 2020 and 2019:

Statutory federal rate

State tax rate, net of federal benefits
Permanent differences

Amortization of investment tax credits

Effective tax rate

statutory federal income tax rate and the

2020

21.0 %
6.1

(63.6)
2.2

(34.3) %

2019

21.0 %
6.1

(33.9)
0.7

(6.1) %

The temporary items that give rise to the net deferred tax liability as of December 31, 2020

10.

Revenue from Contracts with Customers — Non-Regulated Entities

Revenue is recognized when control of the promised goods or services is transferred to
customers, in an amount that reflects the consideration we expect to be entitled to in
exchange for those goods or services.

Disaggregation of Revenue
For the years ended December 31, 2020 and 2019, revenue recognized for goods transferred
over time totaled $2,777,693 and $2,892,868, respectively.

For assets and liabilities measured at fair value on a recurring basis, the fair value measure-
ment by levels within the fair value hierarchy used as of December 31, 2020 and 2019 were
as follows:

December 31, 2020

(in thousands) Total Level 1 Level 2 Level 3
Liabilities:
Interest rate swap S (460) S$ - § (460) S$ -

December 31, 2019

(in thousands) Total Level 1 Level 2 Level 3
Liabilities:
Interest rate swap S (353) S$ - S (353) S$ -

Commitments and Contingencies

Operating Leases

The Company’s corporate office space, as well as certain office equipment, is leased under
operating lease agreements. Total rent expense was approximately $389,800 and $385,400
for the years ended December 31, 2020 and 2019, respectively.

The remaining non-cancelable lease commitments for the corporate office space and leased
equipment as of December 31, 2020 were as follows:

The following table presents a period-end reconciliation of DB Plan assets measured and
recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3):

(in thousands) 2020 2019

Balance, beginning of year S 5,155 S 4,414
Plan transfers 1,941 1,079
Contributions 373 249
Benefits paid (1,844) (691)
Return on plan assets (net of investment expenses) 106 104
Balance, end of year S 5,731 S 5,155

The fair value of DB Plan and OPEB Plan assets by levels within the fair value hierarchy used
as of December 31, 2019 was as follows:

The methods described above may produce a fair value calculation that may not be indicative of
net realizable value or reflective of future fair values. Furthermore, while the Plan’s management
believes the valuation methodologies are appropriate and consistent with other market
participants, the use of different methodologies or assumptions to determine the fair value of
certain investments could result in a different fair value measurement at the reporting date.