Eversource maintains trusts that hold marketable securities to fund certain non-qualified executive benefits. These trusts are not subject to regulatory oversight by state or federal agencies. CYAPC and YAEC maintain legally restricted trusts, each of which holds marketable securities, to fund the decommissioning and spent nuclear fuel removal obligations of their nuclear fuel storage facilities.

Trading Securities: Eversource has elected to record certain equity securities as trading securities, with the changes in fair values recorded in Other Income, Net on the statements of income. As of June 30, 2016 and December 31, 2015, these securities were classified as Level 1 in the fair value hierarchy and totaled $10.6 million and $14.2 million, respectively. For the three months ended June 30, 2016 and 2015, net gains on these securities of $0.2 million and $0.5 million, respectively, and for the six months ended June 30, 2016 and 2015, net gains of $0.5 million and $2.1 million, respectively, were recorded in Other Income, Net on the statements of income. Dividend income is recorded in Other Income, Net when dividends are declared.

Available-for-Sale Securities: The following is a summary of available-for-sale securities, which are recorded at fair value and are included in current and long-term Marketable Securities on the balance sheets.

		As of June 30, 2016								As of December 31, 2015
				Pre-Tax		Pre-Tax						Pre-Tax		Pre-Tax
Eversource		Amortized		Unrealized		Unrealized				Amortized		Unrealized		Unrealized
(Millions of Dollars)		Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value
	Debt Securities	$	261.0	$	8.4	$	-	$	269.4	$	256.5	$	4.5	$	(0.6)	$	260.4
	Equity Securities		207.8		58.5		(2.3)		264.0		215.3		59.2		(3.4)		271.1

Eversource's debt and equity securities include CYAPC's and YAEC's marketable securities held in nuclear decommissioning trusts of $439.5 million and $436.9 million as of June 30, 2016 and December 31, 2015, respectively. Unrealized gains and losses for these nuclear decommissioning trusts are recorded in Marketable Securities with the corresponding offset to Other Long-Term Liabilities on the balance sheets, with no impact on the statements of income.

Unrealized Losses and Other-than-Temporary Impairment: There have been no significant unrealized losses, other-than-temporary impairments or credit losses for the three and six months ended June 30, 2016 and 2015. Factors considered in determining whether a credit loss exists include the duration and severity of the impairment, adverse conditions specifically affecting the issuer, and the payment history, ratings and rating changes of the security. For asset-backed debt securities, underlying collateral and expected future cash flows are also evaluated.

Realized Gains and Losses: Realized gains and losses on available-for-sale securities are recorded in Other Income, Net for Eversource's benefit trust and are offset in Other Long-Term Liabilities for CYAPC and YAEC. Eversource utilizes the specific identification basis method for the Eversource benefit trust, and the average cost basis method for the CYAPC and YAEC nuclear decommissioning trusts to compute the realized gains and losses on the sale of available-for-sale securities.

Contractual Maturities: As of June 30, 2016, the contractual maturities of available-for-sale debt securities were as follows:

Eversource	Amortized
(Millions of Dollars)	Cost		Fair Value
Less than one year⁽¹⁾	$	27.2	$	27.2
One to five years		61.6		62.4
Six to ten years		45.4		47.2
Greater than ten years		126.8		132.6
Total Debt Securities	$	261.0	$	269.4

1) Amounts in the Less than one year category include securities in the CYAPC and YAEC nuclear decommissioning trusts, which are restricted and are classified in long-term Marketable Securities on the balance sheets.

Fair Value Measurements: The following table presents the marketable securities recorded at fair value on a recurring basis by the level in which they are classified within the fair value hierarchy:

Eversource
(Millions of Dollars)		As of June 30, 2016		As of December 31, 2015
Level 1:
	Mutual Funds and Equities	$	274.6	$	285.3
	Money Market Funds		21.1		26.9
Total Level 1		$	295.7	$	312.2
Level 2:
	U.S. Government Issued Debt Securities (Agency and Treasury)	$	70.8	$	46.6
	Corporate Debt Securities		39.5		43.9
	Asset-Backed Debt Securities		18.8		20.0
	Municipal Bonds		109.9		111.4
	Other Fixed Income Securities		9.3		11.6
Total Level 2		$	248.3	$	233.5
Total Marketable Securities		$	544.0	$	545.7

U.S. government issued debt securities are valued using market approaches that incorporate transactions for the same or similar bonds and adjustments for yields and maturity dates. Corporate debt securities are valued using a market approach, utilizing recent trades of the same or similar instrument and also incorporating yield curves, credit spreads and specific bond terms and conditions. Asset-backed debt securities include collateralized mortgage obligations, commercial mortgage backed securities, and securities collateralized by auto loans, credit card loans or receivables. Asset-backed debt securities are valued using recent trades of similar instruments, prepayment assumptions, yield curves, issuance and maturity dates, and tranche information. Municipal bonds are valued using a market approach that incorporates reported trades and benchmark yields. Other fixed income securities are valued using pricing models, quoted prices of securities with similar characteristics, and discounted cash flows.