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Dispositions | 12 Months Ended
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Dec. 31, 2024
Dispositions [Abstract] |
Dispositions | 4. DISPOSITIONS Pending Sale of NMGC On August 5, 2024, Emera entered into an agreement to sell its indirect wholly owned subsidiary NMGC for a total enterprise value of approximately $ 1.3 billion USD, consisting of cash proceeds and the transfer of debt and customary closing adjustments. The transaction is expected to close in late 2025, subject to certain approvals, including approval by the NMPRC. As a result of the pending sale, NMGC’s assets and liabilities are classified as held for sale. As the transaction proceeds will be lower than the carrying amount of the assets and liabilities being sold, Emera assessed the NMGC reporting unit for goodwill impairment by comparing the FV of expected transaction proceeds to the carrying value of net assets, including goodwill of $ 366 million USD (“NMGC carrying amount”). The goodwill of the reporting unit was determined to be impaired and a non-cash goodwill impairment charge of $ 210 million ($ 198 million, after-tax) or $ 155 million USD ($ 146 million USD, after-tax) was recorded in “Impairment Charges” on the Consolidated Statements of Income in Q3 2024. Following the goodwill impairment assessment, the held for sale assets and liabilities were measured at the lower of their carrying amount or fair value less costs to sell. The measurement resulted in an additional loss for the estimated future transaction costs of $ 16 million ($ 12 million after-tax), in addition to incurred transaction costs of $ 9 million ($ 7 million after-tax) recorded in “Other Income, net” on the Consolidated Statements of Income in Q3 2024. The Company will continue to record depreciation on the NMGC assets through the transaction closing date, as the depreciation continues to be reflected in customer rates and will be reflected in the carryover basis of the assets when sold. Depreciation and amortization of $ 26 million ($ 19 million USD) was recorded on these assets from August 5, 2024, the date they were classified as held for sale, through December 31, 2024. Details of the assets and liabilities classified as held for sale are as follows: As at December 31 millions of dollars 2024 Cash and cash equivalents $ 8 Inventory 9 Derivative instruments 1 Regulatory assets 28 Receivables and other current assets 127 Current assets held for sale $ 173 PP&E 1,828 Regulatory assets 6 Goodwill 303 Other long-term assets 23 Long-term assets held for sale $ 2,160 Total assets held for sale $ 2,333 Short-term debt $ 46 Derivative instruments 1 Regulatory liabilities 10 Accounts payable and other current liabilities 155 Current liabilities associated with assets held for sale 212 Long-term debt 696 Deferred income taxes 167 Regulatory liabilities 274 Other long-term liabilities 11 Long-term liabilities associated with assets held for sale $ 1,148 Total liabilities associated with assets held for sale $ 1,360 Sale of LIL Equity Interest On June 4, 2024, Emera completed the sale of its 31.1 per cent indirect minority equity interest in the LIL for a total transaction value of $ 1.2 billion, including cash proceeds of $ 957 million and $ 235 million for assuming Emera’s contractual obligation to fund the remaining initial capital investment, which represents additional LIL equity interest for the acquirer. Cash proceeds from the sale in the amount of $ 30 million is held in escrow pending finalization of certain agreements with the LIL general partner. The escrow proceeds receivable is held at FV and included in the gain on sale, after transaction costs. As of December 31, 2024, the estimated FV of the escrow proceeds receivable is $ 25 million. In Q2 2024, a gain on sale, after transaction costs, of $ 182 million, ($ 107 million, after tax and transaction costs), was recognized in “Other Income, net” on the Consolidated Statements of Income and included in the Other segment. In Q4 2024, Emera recognized a $ 22 million tax benefit due to the reversal of a prior year valuation allowance related to loss carryforwards applied against a portion of the taxable capital gain on the sale of LIL. This tax benefit was recorded in “Income Tax (Recovery) Expense” on the Consolidated Statements of Income in Q4 2024 and included in the Other segment.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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