GOODWILL

12 Months Ended

Dec. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

In a business combination, the excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed is recognized as goodwill. The following table presents Eversource’s goodwill by reportable segment:

(Millions of Dollars)	Electric Distribution		Electric Transmission		Natural Gas Distribution		Water Distribution		Total
Balance as of January 1, 2024	$	2,543.6	$	576.8	$	451.0	$	960.7	$	4,532.1
Sale of Water Unregulated Business and Water Acquisition, net	—		—		—		(1.2)		(1.2)
Water Goodwill Impairment	—		—		—		(297.0)		(297.0)
Water Goodwill Reclassified as Held for Sale	—		—		—		(662.5)		(662.5)
Balance as of December 31, 2024	$	2,543.6	$	576.8	$	451.0	$	—	$	3,571.4
Measurement Period Adjustment	—		—		—		(0.1)		(0.1)
Water Goodwill Reclassified from Held for Sale	—		—		—		662.5		662.5
Balance as of December 31, 2025	$	2,543.6	$	576.8	$	451.0	$	662.4	$	4,233.8

In 2024, Eversource completed the sale of its unregulated water business resulting in a reduction to goodwill of $5.4 million and completed a water acquisition resulting in the addition of $4.2 million of goodwill.

Goodwill is not amortized but is subject to an assessment for impairment at least annually and more frequently if indicators of impairment arise that would more likely than not reduce the fair value of Eversource’s reporting units below their carrying amounts. Eversource's reporting units for the purpose of testing goodwill are Electric Distribution, Electric Transmission, Natural Gas Distribution and Water Distribution. These reporting units are consistent with the operating segments underlying the reportable segments identified in Note 23, "Segment Information," to the financial statements.

In assessing goodwill for impairment, an entity is permitted to first assess qualitatively whether it is more likely than not that goodwill impairment exists as of the annual impairment test date. If after performing the qualitative assessment it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill), then a quantitative goodwill impairment test is performed. A quantitative impairment test is required only if it is concluded that it is more likely than not that a reporting unit’s carrying value may not be recoverable. The quantitative assessment compares the estimated fair value of a reporting unit to its carrying amount, and to the extent the carrying amount exceeds the fair value, an impairment of goodwill is recognized for the excess up to the amount of goodwill allocated to the reporting unit.  A resulting write-down, if any, would be charged to Operating Expenses.   

In the fourth quarter of 2024, Eversource concluded that the likely sale of Aquarion at a loss resulted in the requirement to perform an interim goodwill impairment test for Water Distribution goodwill. Eversource compared the estimated fair value of the business from the anticipated transaction to its carrying value. Assumptions used in the valuation were the future cash flows from the sale, including approximately $140 million of estimated income tax impacts as a result of the transaction. Based on the interim impairment test as of December 31, 2024, Eversource recorded a goodwill impairment of $297.0 million to write down the carrying value of the Water Distribution reporting unit to its estimated fair value. The goodwill impairment charge is presented separately within Operating Income on the Eversource statement of income for the year ended December 31, 2024. The remaining goodwill held by the Water Distribution reporting unit was reclassified to Assets Held for Sale on the Eversource balance sheet as of December 31, 2024 and became part of the water distribution disposal group.

Eversource completed its annual goodwill impairment assessment for the Electric Distribution, Electric Transmission and Natural Gas Distribution reporting units as of October 1, 2025 and determined it was more likely than not that their fair value exceeded carrying value and no impairment existed. The annual goodwill assessment included a qualitative evaluation of multiple factors that impact the fair value of the reporting units, including general, macroeconomic and market conditions, and entity-specific assumptions that affect the future cash flows of the reporting units. Key considerations include discount rates, utility sector market performance and merger transaction multiples, the Company's share price and credit ratings, analyst reports, financial performance, cost and risk factors, internal estimates and projections of future cash flows and net income, long-term strategy, the timing and outcome of rate cases, and recent regulatory and legislative proceedings.

As of October 1, 2025, the goodwill of the Water Distribution reporting unit was classified within Assets Held for Sale, and the disposal group was carried at fair value less cost to sell. Based on PURA’s November 19, 2025 denial of the Aquarion sale and the uncertainty of the ultimate outcome, the Aquarion water distribution business no longer met the criteria to be classified as held for sale. The goodwill held by the Water Distribution reporting unit of $662.5 million that was previously classified within Assets Held for Sale has been reclassified to Goodwill on the Eversource balance sheet as of December 31, 2025. In the fourth quarter of 2025, Eversource performed a goodwill impairment test for Water Distribution goodwill and determined that no impairment existed.