Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2018shares | |
Document and Entity Information | |
Entity Registrant Name | CALIFORNIA WATER SERVICE GROUP |
Entity Central Index Key | 1,035,201 |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 48,074,000 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Utility plant: | ||
Utility plant | $ 3,025,611 | $ 2,970,179 |
Less accumulated depreciation and amortization | (942,573) | (922,214) |
Net utility plant | 2,083,038 | 2,047,965 |
Current assets: | ||
Cash and cash equivalents | 34,702 | 94,776 |
Receivables: | ||
Customers | 28,161 | 32,451 |
Regulatory balancing accounts | 34,119 | 36,783 |
Other | 21,216 | 16,464 |
Unbilled revenue | 28,132 | 29,756 |
Materials and supplies at weighted average cost | 6,478 | 6,463 |
Taxes, prepaid expenses, and other assets | 12,977 | 11,180 |
Total current assets | 165,785 | 227,873 |
Other assets: | ||
Regulatory assets | 405,041 | 401,147 |
Goodwill | 2,615 | 2,615 |
Other assets | 60,028 | 60,775 |
Total other assets | 467,684 | 464,537 |
TOTAL ASSETS | 2,716,507 | 2,740,375 |
Capitalization: | ||
Common stock, $0.01 par value; 68,000 shares authorized, 48,074 and 48,012 outstanding in 2018 and 2017, respectively | 481 | 480 |
Additional paid-in capital | 335,625 | 336,229 |
Retained earnings | 345,205 | 356,753 |
Total common stockholders’ equity | 681,311 | 693,462 |
Long-term debt, less current maturities | 515,670 | 515,793 |
Total capitalization | 1,196,981 | 1,209,255 |
Current liabilities: | ||
Current maturities of long-term debt | 5,924 | 15,920 |
Short-term borrowings | 275,100 | 275,100 |
Accounts payable | 73,556 | 93,955 |
Regulatory balancing accounts | 56,206 | 59,303 |
Accrued interest | 12,342 | 6,122 |
Accrued expenses and other liabilities | 41,189 | 40,559 |
Total current liabilities | 464,317 | 490,959 |
Unamortized investment tax credits | 1,724 | 1,724 |
Deferred income taxes | 192,313 | 192,946 |
Pension and postretirement benefits other than pensions | 256,520 | 252,141 |
Regulatory liabilities and other | 232,587 | 224,127 |
Advances for construction | 184,479 | 182,502 |
Contributions in aid of construction | 187,586 | 186,721 |
Commitments and contingencies (Note 10) | ||
TOTAL CAPITALIZATION AND LIABILITIES | $ 2,716,507 | $ 2,740,375 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 68,000,000 | 68,000,000 |
Common stock, shares outstanding (in shares) | 48,074,000 | 48,012,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Operating revenue | $ 132,247 | $ 122,036 |
Operations: | ||
Water production costs | 47,606 | 42,068 |
Administrative and general | 26,319 | 22,746 |
Other operations | 17,640 | 16,124 |
Maintenance | 5,439 | 6,112 |
Depreciation and amortization | 20,715 | 19,201 |
Income taxes | (229) | (884) |
Property and other taxes | 6,704 | 6,116 |
Total operating expenses | 124,194 | 111,483 |
Net operating income | 8,053 | 10,553 |
Other income and expenses: | ||
Non-regulated revenue | 4,419 | 3,462 |
Non-regulated expenses | (5,437) | (2,054) |
Other components of net periodic benefit cost | (2,546) | (2,503) |
Allowance for equity funds used during construction | 911 | 779 |
Income tax expense on other income and expenses | 758 | (889) |
Net other income | (1,895) | (1,205) |
Interest expense: | ||
Interest expense | 9,198 | 8,710 |
Allowance for borrowed funds used during construction | (495) | (494) |
Net interest expense | 8,703 | 8,216 |
Net income | $ (2,545) | $ 1,132 |
Earnings per share: | ||
Basic (in dollars per share) | $ (0.05) | $ 0.02 |
Diluted (in dollars per share) | $ (0.05) | $ 0.02 |
Weighted average shares outstanding: | ||
Basic (in shares) | 48,030 | 47,984 |
Diluted (in shares) | 48,030 | 47,984 |
Dividends declared per share of common stock (in dollars per share) | $ 0.1875 | $ 0.1800 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities: | ||
Net (loss) income | $ (2,545) | $ 1,132 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 21,207 | 19,658 |
Change in value of life insurance contracts | 1,137 | (319) |
Allowance for equity funds used during construction | (911) | (779) |
Changes in operating assets and liabilities: | ||
Receivables and unbilled revenue | 5,438 | (4,564) |
Accounts payable | (7,015) | (5,535) |
Other current assets | (1,727) | (5,359) |
Other current liabilities | 6,385 | 5,084 |
Other changes in noncurrent assets and liabilities | 6,283 | 4,979 |
Net cash provided by operating activities | 28,252 | 14,297 |
Investing activities: | ||
Utility plant expenditures | (70,650) | (51,853) |
Life insurance proceeds | 0 | 450 |
Purchase of life insurance contracts | 0 | (836) |
Net cash used in investing activities | (70,650) | (52,239) |
Financing activities: | ||
Short-term borrowings | 45,022 | 35,000 |
Repayment of short-term borrowings | (45,022) | (2,000) |
Repayment of long-term debt | (10,224) | (286) |
Advances and contributions in aid of construction | 4,763 | 3,975 |
Refunds of advances for construction | (1,918) | (2,236) |
Repurchase of common stock | (1,239) | (1,119) |
Dividends paid | (9,003) | (8,634) |
Net cash (used in) provided by financing activities | (17,621) | 24,700 |
Change in cash, cash equivalents, and restricted cash | (60,019) | (13,242) |
Cash, cash equivalents, and restricted cash at beginning of period | 95,352 | 25,935 |
Cash, cash equivalents, and restricted cash at end of period | 35,333 | 12,693 |
Supplemental information: | ||
Cash paid for interest (net of amounts capitalized) | 1,251 | 994 |
Supplemental disclosure of non-cash activities: | ||
Accrued payables for investments in utility plant | 28,367 | 24,191 |
Utility plant contribution by developers | $ 4,518 | $ 3,481 |
Organization and Operations and
Organization and Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations and Basis of Presentation | Organization and Operations and Basis of Presentation California Water Service Group (the Company) is a holding company that provides water utility and other related services in California, Washington, New Mexico and Hawaii through its wholly-owned subsidiaries. California Water Service Company (Cal Water), Washington Water Service Company (Washington Water), New Mexico Water Service Company (New Mexico Water), and Hawaii Water Service Company, Inc. (Hawaii Water) provide regulated utility services under the rules and regulations of their respective state’s regulatory commissions (jointly referred to herein as the Commissions). CWS Utility Services and HWS Utility Services LLC provide non-regulated water utility and utility-related services. The Company operates in one reportable segment, providing water and related utility services. Basis of Presentation The unaudited condensed consolidated interim financial information has been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (SEC) and therefore do not contain all of the information and footnotes required by GAAP and the SEC for annual financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2017 , included in its annual report on Form 10-K as filed with the SEC on March 1, 2018. The preparation of the Company’s unaudited condensed consolidated interim financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses for the periods presented. These include, but are not limited to, estimates and assumptions used in determining the Company’s regulatory asset and liability balances based upon probability assessments of regulatory recovery, revenues earned but not yet billed, asset retirement obligations, allowance for doubtful accounts, pension and other employee benefit plan liabilities, and income tax-related assets and liabilities. Actual results could differ from these estimates. In the opinion of management, the accompanying unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of normal recurring transactions that are necessary to provide a fair presentation of the results for the periods covered. The results for interim periods are not necessarily indicative of the results for any future period. Due to the seasonal nature of the water business, the results for interim periods are not indicative of the results for a 12-month period. Revenue and income are generally higher in the warm, dry summer months when water usage and sales are greater. Revenue and income are generally lower in the winter months when cooler temperatures and rainfall curtail water usage and sales. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Operating revenue The following table disaggregates the Company’s operating revenue by source: Three Months Ended March 31, 2018 2017 Revenue from contracts with customers $ 134,254 $ 112,812 Regulatory balancing account revenue (2,007 ) 9,224 Total operating revenue $ 132,247 $ 122,036 Revenue from contracts with customers The Company principally generates operating revenue from contracts with customers by providing regulated water and wastewater services at tariff-rates authorized by the Commissions in the states in which they operate and non-regulated water and wastewater services at rates authorized by contracts with government agencies. Revenue from contracts with customers reflects amounts billed for the volume of consumption at authorized per unit rates, for a service charge, and for other authorized charges. The Company satisfies its performance obligation to provide water and wastewater services over time as services are rendered. The Company applies the invoice practical expedient and recognizes revenue from contracts with customers in the amount for which the Company has a right to invoice. The Company has a right to invoice for the volume of consumption, for the service charge, and for other authorized charges. The measurement of sales to customers is generally based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, the Company estimates consumption since the date of the last meter reading and a corresponding unbilled revenue is recognized. The estimate is based upon the number of unbilled days that month and the average daily customer billing rate from the previous month (which fluctuates based upon customer usage). Contract terms are generally short-term and at will by customers and, as a result, no separate financing component is recognized for their collections from customers, which generally require payment within 30 days of billing. The Company applies judgment, based principally on historical payment experience, in estimating their customers’ ability to pay. Certain customers are not billed for volumetric consumption, but are instead billed a flat rate at the beginning of each monthly service period. The amount billed is initially deferred and subsequently recognized over the monthly service period, as the performance obligation is satisfied. The deferred revenue balance, which is included in "other accrued liabilities" on the consolidated balance sheets, is inconsequential. In the following table, revenue from contracts with customers is disaggregated by class of customers: Three Months Ended March 31, 2018 2017 Residential $ 91,319 $ 75,865 Business 27,057 22,026 Industrial 7,579 6,954 Public authorities 5,444 4,146 Other 2,855 3,821 Total revenue from contracts with customers $ 134,254 $ 112,812 Regulatory balancing account revenue The Company’s ability to recover revenue requirements authorized by the California Public Utilities Commission (CPUC) in its triennial General Rate Case (GRC), is decoupled from the volume of the sales. Regulatory balancing account revenue is revenue related to rate mechanisms authorized in California by the CPUC, which allow the Company to recover the authorized revenue and are not considered contracts with customers. The Water Revenue Adjustment Mechanism (WRAM) allows the Company to recognize the adopted level of volumetric revenues. The variance between adopted volumetric revenues and actual billed volumetric revenues for metered accounts is recorded as regulatory balancing account revenue. Cost-recovery rates, such as the Modified Cost Balancing Account (MCBA), provide for recovery of the adopted levels of expenses for purchased water, purchased power, pump taxes, water conservation program costs and certain other operating expenses. Variances between adopted and actual costs are recorded as regulatory balancing account revenue. Each district's WRAM and MCBA regulatory assets and liabilities are allowed to be netted against one another. The Company recognizes regulatory balancing account revenues that have been authorized for rate recovery, are objectively determinable and probable of recovery, and are expected to be collected within 24 months. To the extent that regulatory balancing account revenue is estimated to be collectible beyond 24 months, recognition is deferred. Non-regulated Revenue Three Months Ended March 31, 2018 2017 Operating and maintenance revenue $ 3,165 $ 1,913 Other non-regulated revenue 743 1,042 Non-regulated revenue from contracts with customers $ 3,908 $ 2,955 Lease revenue $ 511 $ 507 Total non-regulated revenue $ 4,419 $ 3,462 Operating and maintenance services are provided for water and wastewater systems owned by private companies and municipalities. The Company negotiates formal agreements with the customers, under which they provide operating, maintenance and customer billing services related to the customers’ water system. The formal agreements outline the fee schedule for the services provided. The agreements typically call for a fee-per-service or a flat-rate amount per month. The Company typically satisfies its performance obligation of providing operating and maintenance services over time as services are rendered; as a result, the Company employs the invoice practical expedient and recognizes revenue in the amount that it has the right to invoice. Contract terms are generally short-term and as a result no separate financing component is recognized for its collections from customers, which generally require payment within 30 days of billing. Other non-regulated revenue primarily relates to services for the design and installation of water mains and other water infrastructure for customers outside the regulated service areas and insurance program administration. Other non-regulated revenue is inconsequential. The Company is the lessor in operating lease agreements with telecommunications companies under which cellular phone antennas are placed on the Company's property. Lease revenue is not considered revenue from contracts with customers and is recognized following current operating lease standards. Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown on the Condensed Consolidated Statements of Cash Flows: March 31, 2018 December 31, 2017 Cash and cash equivalents 34,702 94,776 Restricted cash (included in "taxes, prepaid expenses and other assets") 631 576 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 35,333 $ 95,352 Adoption of New Accounting Standards In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (codified in ASC 606), which amends the existing revenue recognition guidance. The Company completed an evaluation of the new revenue standard and implemented the standard on January 1, 2018 using the modified retrospective method for all contracts. The reported results for the first three months of 2018 reflect the application of ASC 606 guidance, while prior period amounts were not adjusted and continue to be reported in accordance with the accounting standards in effect for those periods. Other than increased disclosures regarding revenues related to contracts with customers, the implementation did not have a significant impact on the Company’s consolidated financial statements (see "Operating Revenue" section of note 2 above). In August of 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments . This update adds and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The Company will continue to classify proceeds from the settlement of insurance claims on the basis of the nature of the loss and from the settlement of corporate-owned life insurance policies as cash inflows on the Condensed Consolidated Statements of Cash Flows. The Company implemented the standard on January 1, 2018 and retrospectively applied the standard in the comparative period. The standard does not have a significant impact to the Company's consolidated financial statements. In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash . The update requires the Company to combine restricted cash with cash and cash equivalents when reconciling the beginning and end of period balances in the Condensed Consolidated Statements of Cash Flows. The Company implemented the standard on January 1, 2018 and retrospectively applied the standard in the comparative period. The following table shows the effect of the accounting change to the Condensed Consolidated Statements of Cash Flows: Three Months Ended March 31, 2017 Condensed Consolidated Statements of Cash Flows line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Change in restricted cash $ (260 ) $ — $ 260 Net cash used in investing activities $ (52,499 ) $ (52,239 ) $ 260 Change in cash, cash equivalents, and restricted cash $ (13,502 ) $ (13,242 ) $ 260 Cash, cash equivalents, and restricted cash at beginning of period $ 25,492 $ 25,935 $ 443 Cash, cash equivalents, and restricted cash at end of period $ 11,990 $ 12,693 $ 703 In March of 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The update requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost, including interest cost, expected return on plan assets, amortization of prior service cost/credit and actuarial gain/loss, and settlement and curtailment effects, are to be presented as non-operating items. In addition, the standard only allows the service cost component to be eligible for capitalization. The standard became effective as of January 1, 2018. The presentation amendments were applied retrospectively and the capitalization amendments were applied prospectively on and after the effective date. The company applied the practical expedient that permits the Company to use the amounts disclosed in its pension and other postretirement benefit plan footnote from the prior comparative periods as the estimation basis for applying the retrospective presentation requirements . The Commissions have authorized the Company to recover the other components of net periodic benefit cost through the Company’s capital program and thus on and after the effective date, the other components of net periodic benefit cost that have previously been recorded as part of utility plant have been recognized as a regulatory asset (see note 9). As a result, the changes required by the standard did not have a material impact on the results of operations. The following table shows the effect of the accounting change to the Condensed Consolidated Statements of (Loss) Income for the three months ended March 31, 2017: Three Months Ended March 31, 2017 Condensed Consolidated Statement of (Loss) Income line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Administrative and general $ 25,249 $ 22,746 $ (2,503 ) Total operating expenses $ 113,986 $ 111,483 $ (2,503 ) Net operating income $ 8,050 $ 10,553 $ 2,503 Other components of net periodic benefit cost $ — $ (2,503 ) $ 2,503 Net other income $ 1,298 $ (1,205 ) $ (2,503 ) New Accounting Standards Issued But Not Yet Adopted In February of 2016, the FASB issued ASU 2016-02, Leases . This update changes the accounting treatment of leases and related disclosure requirements. In November of 2017, the FASB tentatively decided to amend the new leasing guidance such that entities may elect not to restate their comparative periods in the period of adoption. The guidance requires lessees to recognize an asset and liability on the balance sheet for all of their lease obligations. Operating leases were previously not recognized on the balance sheet. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company will adopt the standard using the modified retrospective method for its existing leases and expects this standard to increase lease assets and lease liabilities on the Condensed Consolidated Balance Sheets. The Company does not expect that the guidance will have a material impact on the Condensed Consolidated Statements of (Loss) Income, Condensed Consolidated Statements of Cash Flows, and lease disclosures. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation Equity Incentive Plan During the three months ended March 31, 2018 and 2017, the Company granted annual Restricted Stock Awards (RSAs) of 46,135 and 48,717 , respectively, to officers and directors of the Company. During those same periods, 9,464 RSAs and 10,902 RSAs, respectively, were canceled. RSAs granted to officers vest over 36 months with the first year cliff vesting. RSAs granted to directors generally vest at the end of 12 months . During the first three months of 2018 and 2017, the RSAs granted were valued at $35.40 and $36.75 per share, respectively, based upon the fair value of the Company’s common stock on the date of grant. During the three months ended March 31, 2018 and 2017, the Company granted 28,594 and 31,389 performance-based Restricted Stock Unit Awards (RSUs), respectively, to officers. During those same periods, the Company issued 48,753 RSUs and 38,709 RSUs, respectively, to officers, and canceled 24,009 RSUs and 19,735 RSUs, respectively. Each RSU award reflects a target number of shares that may be issued to the award recipient. The 2018 and 2017 awards may be earned upon completion of the three -year performance period and are recognized as expense ratably over the period using a fair value of $35.40 per share and $36.75 per share, respectively, and an estimate of RSUs earned during the period. The Company has recorded compensation costs for the RSAs and RSUs in administrative and general operating expenses in the amount of $0.7 million for the three months ended March 31, 2018 and 2017. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Equity | Equity The Company’s changes in total common stockholders’ equity for the three months ended March 31, 2018 were as follows: Total Common Stockholders’ Equity Balance at December 31, 2017 $ 693,462 Common stock issued 1 Share-based compensation expense 635 Repurchase of common stock (1,239 ) Common stock dividends declared (9,003 ) Net loss (2,545 ) Balance at March 31, 2018 $ 681,311 |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | (Loss) Earnings Per Share The computations of basic and diluted (loss) earnings per share are noted in the table below. Basic (loss) earnings per share are computed by dividing the net (loss) income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts were exercised or converted into common stock. RSAs are included in the weighted average common shares outstanding because the shares have all the same voting and dividend rights as issued and unrestricted common stock. RSUs are not included in diluted shares for financial reporting until authorized by the Compensation & Organization Committee of the Board of Directors. Three Months Ended March 31 2018 2017 (In thousands, except per share data) Net (loss) income available to common stockholders $ (2,545 ) $ 1,132 Weighted average common shares outstanding, basic 48,030 47,984 Weighted average common shares outstanding, dilutive 48,030 47,984 (Loss) Earnings per share - basic $ (0.05 ) $ 0.02 (Loss) Earnings per share - diluted $ (0.05 ) $ 0.02 |
Pension Plan and Other Postreti
Pension Plan and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plan and Other Postretirement Benefits | Pension Plan and Other Postretirement Benefits The Company provides a qualified, defined-benefit, non-contributory pension plan for substantially all employees. The Company makes annual contributions to fund the amounts accrued for in the qualified pension plan. The Company also maintains an unfunded, non-qualified, supplemental executive retirement plan. The costs of the plans are charged to expense or are capitalized in utility plant as appropriate. The Company offers medical, dental, vision, and life insurance benefits for retirees and their spouses and dependents. Participants are required to pay a premium, which offsets a portion of the cost. Cash contributions by the Company related to pension plans were $7.3 million and $7.5 million for the three months ended March 31, 2018 and 2017, respectively. There were no cash contributions by the Company related to other postretirement benefit plans were for the three months ended March 31, 2018 and 2017. The total 2018 estimated cash contribution to the pension plans is $33.4 million and to the other postretirement benefit plans is $10.1 million . The following table lists components of net periodic benefit costs for the pension plans and other postretirement benefits. The data listed under “pension plan” includes the qualified pension plan and the non-qualified supplemental executive retirement plan. The data listed under “other benefits” is for all other postretirement benefits. Three Months Ended March 31 Pension Plan Other Benefits 2018 2017 2018 2017 Service cost $ 7,402 $ 5,865 $ 2,550 $ 2,019 Interest cost 5,995 5,791 1,484 1,491 Expected return on plan assets (6,862 ) (6,029 ) (1,416 ) (1,218 ) Amortization of prior service cost 1,263 1,445 11 11 Recognized net actuarial loss 2,797 1,752 773 649 Net periodic benefit cost $ 10,595 $ 8,824 $ 3,402 $ 2,952 Service cost portion of the pension plan and other postretirement benefits is recognized in administrative and general within the Condensed Consolidated Statements of (Loss) Income. Other components of net periodic benefit costs include interest costs, expected return on plan assets, amortization of prior service costs, and recognized net actuarial loss and are reported together as other components of net periodic benefit costs within the Condensed Consolidated Statements of (Loss) Income (see note 2). |
Short-term and Long-term Borrow
Short-term and Long-term Borrowings | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-term and Long-term Borrowings | Short-term and Long-term Borrowings Both short-term unsecured credit agreements contain affirmative and negative covenants and events of default customary for credit facilities of this type including, among other things, limitations and prohibitions relating to additional indebtedness, liens, mergers, and asset sales. Also, these unsecured credit agreements contain financial covenants governing the Company and its subsidiaries’ consolidated total capitalization ratio and interest coverage ratio. The outstanding borrowings on the Company lines of credit were $55.1 million as of March 31, 2018 and December 31, 2017. There were $220.0 million borrowings on the Cal Water lines of credit as of March 31, 2018 and December 31, 2017. The average borrowing rate for borrowings on the Company and Cal Water lines of credit during the three months ended March 31, 2018 was 2.45% compared to 1.60% for the same period last year. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate. The Company also records the tax effect of unusual or infrequently occurring discrete items. The provision for income taxes is shown below: Three Months Ended March 31 2018 2017 Income tax (benefit) expense $ (987 ) $ 5 The operating income tax benefit decreased $0.7 million to $0.2 million for the three months ended March 31, 2018 as compared to the three months ended March 31, 2017 mostly due to a decrease in the corporate federal income tax rate from 35 percent to 21 percent, effective January 1, 2018. The non-operating income tax expense decreased $1.6 million to $0.8 million for the three months ended March 31, 2018, as compared to the three months ended March 31, 2017, mostly due to a $1.5 million unrealized loss on certain benefit plan investments and a decrease in the corporate federal income tax rate from 35 percent to 21 percent, effective January 1, 2018. The Company's 2018 effective tax rate, before discrete items, is estimated to be 23% . For year ended December 31, 2017, the Company recorded a provisional re-measurement of its deferred tax balances (related mostly to timing differences for plant-related items) which was offset by a change from a net deferred income tax regulatory asset to a net regulatory liability. The Company is continuing to work with state regulators to finalize the ratepayer net refund of $108.0 million to ensure compliance with federal normalization rules. The final transition impacts of the Tax Cuts and Jobs Act (TCJA) may differ from the recorded amounts, possibly materially, due to, among other things, regulatory decisions that could differ from the Company’s determination of how the impacts of the TCJA are allocated between customers and shareholders. In addition, while the Company was able to make reasonable estimates of the impact of the reduction in federal tax rate and the elimination of bonus depreciation due to the enactment of the TCJA; the Company has not completed analysis for areas of the TCJA around Internal Revenue Code Section 162(m), full expensing of fixed assets, and other asset related items of the TCJA. Changes in interpretations, guidance on legislative intent, and any changes in accounting standards for income taxes in response to the TCJA could impact the recorded amounts. The Company will finalize and record any adjustments related to the TCJA within the one year measurement period provided under Staff Accounting Bulletin No. 118. The balances relating to TCJA impact continue to be provisional as of March 31, 2018. The Company had unrecognized tax benefits of approximately $11.3 million and $10.5 million as of March 31, 2018 and March 31, 2017, respectively. Included in the balance of unrecognized tax benefits as of March 31, 2018 and March 31, 2017 are approximately $2.1 million and $2.3 million , respectively, of tax benefits that, if recognized, would result in an adjustment to the Company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly within the next 12 months. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Regulated Operations [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities Regulatory assets and liabilities were comprised of the following as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Regulatory Assets Pension and retiree group health $ 214,084 $ 214,249 Property-related temporary differences (tax benefits flowed through to customers) 87,700 87,323 Other accrued benefits 29,073 28,251 Net WRAM and MCBA long-term accounts receivable 35,278 34,879 Asset retirement obligations, net 17,473 17,126 Interim rates long-term accounts receivable 4,568 4,568 Tank coating 11,052 10,998 Health care balancing account 522 496 Pension balancing account 3,742 2,322 Other components of net periodic benefit cost 811 — Other regulatory assets 738 935 Total Regulatory Assets $ 405,041 $ 401,147 Regulatory Liabilities Future tax benefits due to customers $ 168,366 $ 168,343 Health care balancing account 9,282 7,749 Conservation program 3,797 2,273 Pension balancing account 154 364 Net WRAM and MCBA long-term payable 2,035 513 Tax accounting memorandum account 1,982 — Cost of capital memorandum account 1,151 — Other regulatory liabilities 299 464 Total Regulatory Liabilities $ 187,066 $ 179,706 Short-term regulatory assets and liabilities are excluded from the above table. The short-term regulatory assets were $34.1 million as of March 31, 2018 and $36.8 million as of December 31, 2017 . As of March 31, 2018 and December 31, 2017 , the short-term regulatory assets primarily consist of net WRAM and MCBA receivables. The short-term portions of regulatory liabilities were $56.2 million as of March 31, 2018 and $59.3 million as of December 31, 2017 . The short-term regulatory liabilities as of March 31, 2018 , primarily consist of 1,2,3 trichloropropane (TCP) settlement proceeds. As of December 31, 2017 , the short-term regulatory liabilities primarily consist of TCP settlement proceeds and net WRAM and MCBA liability balances. The tax accounting and cost of capital memorandum account regulatory liabilities are related to the estimated ratepayer refunds due to changes in the federal income tax rate and to the cost of capital decision in California. The other components of net periodic benefit cost regulatory asset are authorized by the Commissions and are probable for rate recovery through the capital program (see Note 2). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has significant commitments to lease certain office spaces and water systems and to purchase water from water wholesalers. These commitments are described in Form 10-K for the year ended December 31, 2017. As of March 31, 2018, there were no significant changes from December 31, 2017. Contingencies Groundwater Contamination The Company has undertaken litigation against third parties to recover past and anticipated costs related to groundwater contamination in our service areas. The cost of litigation is expensed as incurred and any settlement is first offset against such costs. The CPUC’s general policy requires all proceeds from groundwater contamination litigation to be used first to pay transactional expenses, then to make ratepayers whole for water treatment costs to comply with the CPUC’s water quality standards. The CPUC allows for a risk-based consideration of contamination proceeds which exceed the costs of the remediation described above and may result in some sharing of proceeds with the shareholder, determined on a case by case basis. The CPUC has authorized various memorandum accounts that allow the Company to track significant litigation costs to request recovery of these costs in future filings and uses of proceeds to comply with CPUC’s general policy. Other Legal Matters From time to time, the Company is involved in various disputes and litigation matters that arise in the ordinary course of business. The status of each significant matter is reviewed and assessed for potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount of the range of loss can be estimated, a liability is accrued for the estimated loss in accordance with the accounting standards for contingencies. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on the best information available at the time. While the outcome of these disputes and litigation matters cannot be predicted with any certainty, management does not believe when taking into account existing reserves the ultimate resolution of these matters will materially affect the Company’s financial position, results of operations, or cash flows. As of March 31, 2018 and December 31, 2017, the Company recognized a liability of $6.9 million and $6.1 million , respectively, for known legal matters. The cost of litigation is expensed as incurred and any settlement is first offset against such costs. Any settlement in excess of the cost to litigate is accounted for on a case by case basis, dependent on the nature of the settlement. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities The accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires certain disclosures about assets and liabilities measured at fair value. A hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. The three levels in the hierarchy are as follows: Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access. Level 2 - Inputs to the valuation methodology include: • Quoted market prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Specific valuation methods include the following: Accounts receivable and accounts payable carrying amounts approximated the fair value because of the short-term maturity of the instruments. Long-term debt fair values were estimated using the published quoted market price, if available, or the discounted cash flow analysis, based on the current rates available using a risk-free rate (a U.S. Treasury securities yield curve) plus a risk premium of 1.70% . Advances for construction fair values were estimated using broker quotes from companies that frequently purchase these investments. March 31, 2018 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 521,594 — $ 584,764 — $ 584,764 Advances for construction 184,479 — 77,621 — 77,621 Total $ 706,073 $ — $ 662,385 $ — $ 662,385 December 31, 2017 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 531,713 $ — $ 607,492 $ — $ 607,492 Advances for construction 182,502 — 75,083 — 75,083 Total $ 714,215 — $ 682,575 $ — $ 682,575 |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements On April 17, 2009, Cal Water issued $100.0 million aggregate principal amount of 5.875% First Mortgage Bonds due 2019, and on November 17, 2010, Cal Water issued $100.0 million aggregate principal amount of 5.500% First Mortgage Bonds due 2040, all of which are fully and unconditionally guaranteed by the Company. As a result of these guarantee arrangements, the Company is required to present the following condensed consolidating financial information. The investments in affiliates are accounted for and presented using the “equity method” of accounting. The following tables present the Condensed Consolidating Balance Sheets as of March 31, 2018 and December 31, 2017, the Condensed Consolidating Statements of (Loss) Income for the three months ended March 31, 2018 and 2017, and the Condensed Consolidating Statements of Cash Flows for the three months ended March 31, 2018 and 2017 of (i) California Water Service Group, the guarantor of the First Mortgage Bonds and the parent company; (ii) California Water Service Company, the issuer of the First Mortgage Bonds and a 100% owned consolidated subsidiary of California Water Service Group; and (iii) the other 100% owned non-guarantor consolidated subsidiaries of California Water Service Group. No other subsidiary of the Company guarantees the securities. The Condensed Consolidating Statement of Cash Flows for the three months ended March 31, 2018 and 2017 reflect the retrospective adoption of ASU 2016-18 (refer to Note 2 for more details). The Condensed Consolidating Statement of (Loss) Income for the three months ended March 31, 2017 reflects the retrospective adoption of ASU 2017-07 (refer to Note 2 for more details). CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of March 31, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,321 $ 2,824,077 $ 207,409 $ (7,196 ) $ 3,025,611 Less accumulated depreciation and amortization (943 ) (887,919 ) (55,743 ) 2,032 (942,573 ) Net utility plant 378 1,936,158 151,666 (5,164 ) 2,083,038 Current assets: Cash and cash equivalents 2,242 24,471 7,989 — 34,702 Receivables and unbilled revenue — 107,838 3,790 — 111,628 Receivables from affiliates 22,494 858 157 (23,509 ) — Other current assets 400 17,894 1,161 — 19,455 Total current assets 25,136 151,061 13,097 (23,509 ) 165,785 Other assets: Regulatory assets — 401,169 3,872 — 405,041 Investments in affiliates 686,964 — — (686,964 ) — Long-term affiliate notes receivable 26,024 — — (26,024 ) — Other assets 90 58,937 3,820 (204 ) 62,643 Total other assets 713,078 460,106 7,692 (713,192 ) 467,684 TOTAL ASSETS $ 738,592 $ 2,547,325 $ 172,455 $ (741,865 ) $ 2,716,507 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 681,311 $ 614,914 $ 77,291 $ (692,205 ) $ 681,311 Affiliate long-term debt — — 26,024 (26,024 ) — Long-term debt, less current maturities — 514,894 776 — 515,670 Total capitalization 681,311 1,129,808 104,091 (718,229 ) 1,196,981 Current liabilities: Current maturities of long-term debt — 5,604 320 — 5,924 Short-term borrowings 55,100 220,000 — — 275,100 Payables to affiliates 245 157 23,107 (23,509 ) — Accounts payable — 69,950 3,606 — 73,556 Accrued expenses and other liabilities 215 106,958 2,564 — 109,737 Total current liabilities 55,560 402,669 29,597 (23,509 ) 464,317 Unamortized investment tax credits — 1,724 — — 1,724 Deferred income taxes 1,721 188,278 2,441 (127 ) 192,313 Pension and postretirement benefits other than pensions — 256,520 — — 256,520 Regulatory liabilities and other — 229,072 3,515 — 232,587 Advances for construction — 183,980 499 — 184,479 Contributions in aid of construction — 155,274 32,312 — 187,586 TOTAL CAPITALIZATION AND LIABILITIES $ 738,592 $ 2,547,325 $ 172,455 $ (741,865 ) $ 2,716,507 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,321 $ 2,771,259 $ 204,795 $ (7,196 ) $ 2,970,179 Less accumulated depreciation and amortization (919 ) (868,762 ) (54,543 ) 2,010 (922,214 ) Net utility plant 402 1,902,497 150,252 (5,186 ) 2,047,965 Current assets: Cash and cash equivalents 4,728 80,940 9,108 — 94,776 Receivables and unbilled revenue — 110,928 4,526 — 115,454 Receivables from affiliates 19,952 4,093 43 (24,088 ) — Other current assets 80 16,569 994 — 17,643 Total current assets 24,760 212,530 14,671 (24,088 ) 227,873 Other assets: Regulatory assets — 397,333 3,814 — 401,147 Investments in affiliates 698,690 — — (698,690 ) — Long-term affiliate notes receivable 26,441 — — (26,441 ) — Other assets 192 59,581 3,822 (205 ) 63,390 Total other assets 725,323 456,914 7,636 (725,336 ) 464,537 TOTAL ASSETS $ 750,485 $ 2,571,941 $ 172,559 $ (754,610 ) $ 2,740,375 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 693,462 $ 626,300 77,647 $ (703,947 ) $ 693,462 Affiliate long-term debt — — 26,441 (26,441 ) — Long-term debt, less current maturities — 514,952 841 — 515,793 Total capitalization 693,462 1,141,252 104,929 (730,388 ) 1,209,255 Current liabilities: Current maturities of long-term debt — 15,598 322 — 15,920 Short-term borrowings 55,100 220,000 — — 275,100 Payables to affiliates — 580 23,508 (24,088 ) — Accounts payable — 90,561 3,394 — 93,955 Accrued expenses and other liabilities 271 104,002 1,711 — 105,984 Total current liabilities 55,371 430,741 28,935 (24,088 ) 490,959 Unamortized investment tax credits — 1,724 — — 1,724 Deferred income taxes 1,652 189,004 2,424 (134 ) 192,946 Pension and postretirement benefits other than pensions — 252,141 — — 252,141 Regulatory and other liabilities — 220,779 3,348 — 224,127 Advances for construction — 181,979 523 — 182,502 Contributions in aid of construction — 154,321 32,400 — 186,721 TOTAL CAPITALIZATION AND LIABILITIES $ 750,485 $ 2,571,941 $ 172,559 $ (754,610 ) $ 2,740,375 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended March 31, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 123,570 $ 8,677 $ — $ 132,247 Operating expenses: Operations: Water production costs — 45,623 1,983 — 47,606 Administrative and general — 23,606 2,713 — 26,319 Other operations — 16,217 1,569 (146 ) 17,640 Maintenance — 5,244 195 — 5,439 Depreciation and amortization 23 19,613 1,101 (22 ) 20,715 Income tax benefit (78 ) (340 ) (8 ) 197 (229 ) Property and other taxes — 6,007 697 — 6,704 Total operating (income) expenses (55 ) 115,970 8,250 29 124,194 Net operating income 55 7,600 427 (29 ) 8,053 Other income and expenses: Non-regulated revenue 531 4,244 320 (676 ) 4,419 Non-regulated expenses — (5,293 ) (144 ) — (5,437 ) Other components of net periodic benefit cost — (2,447 ) (99 ) — (2,546 ) Allowance for equity funds used during construction — 911 — — 911 Income tax (expense) benefit on other income and expenses (148 ) 741 (24 ) 189 758 Total other income (loss) 383 (1,844 ) 53 (487 ) (1,895 ) Interest: Interest expense 258 8,934 537 (531 ) 9,198 Allowance for borrowed funds used during construction — (458 ) (37 ) — (495 ) Net interest expense 258 8,476 500 (531 ) 8,703 Equity loss of subsidiaries (2,725 ) — — 2,725 — Net loss $ (2,545 ) $ (2,720 ) $ (20 ) $ 2,740 $ (2,545 ) CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended March 31, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 113,342 $ 8,694 $ — $ 122,036 Operating expenses: Operations: Water production costs — 40,189 1,879 — 42,068 Administrative and general — 20,126 2,620 — 22,746 Other operations — 14,400 1,850 (126 ) 16,124 Maintenance — 5,906 206 — 6,112 Depreciation and amortization 23 18,111 1,090 (23 ) 19,201 Income tax benefit (103 ) (946 ) (92 ) 257 (884 ) Property and other taxes (4 ) 5,412 708 — 6,116 Total operating (income) expenses (84 ) 103,198 8,261 108 111,483 Net operating income 84 10,144 433 (108 ) 10,553 Other income and expenses: Non-regulated revenue 481 3,135 454 (608 ) 3,462 Non-regulated expenses — (1,747 ) (307 ) — (2,054 ) Other components of net periodic benefit cost — (2,350 ) (153 ) — (2,503 ) Allowance for equity funds used during construction — 779 — — 779 Income tax expense on other income and expenses (196 ) (883 ) (58 ) 248 (889 ) Total other income (loss) 285 (1,066 ) (64 ) (360 ) (1,205 ) Interest: Interest expense 235 8,470 486 (481 ) 8,710 Allowance for borrowed funds used during construction — (476 ) (18 ) — (494 ) Net interest expense 235 7,994 468 (481 ) 8,216 Equity earnings of subsidiaries 998 — — (998 ) — Net income $ 1,132 $ 1,084 $ (99 ) $ (985 ) $ 1,132 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 31, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net loss $ (2,545 ) $ (2,720 ) $ (20 ) $ 2,740 $ (2,545 ) Adjustments to reconcile net loss to net cash provided by operating activities: Equity loss of subsidiaries 2,725 — — (2,725 ) — Dividends received from affiliates 9,003 — — (9,003 ) — Depreciation and amortization 23 20,081 1,125 (22 ) 21,207 Changes in value of life insurance contracts — 1,137 — — 1,137 Allowance for equity funds used during construction — (911 ) — — (911 ) Changes in operating assets and liabilities (376 ) 1,728 1,729 — 3,081 Other changes in noncurrent assets and liabilities 806 5,368 102 7 6,283 Net cash provided by operating activities 9,636 24,683 2,936 (9,003 ) 28,252 Investing activities: Utility plant expenditures — (67,841 ) (2,809 ) — (70,650 ) Changes in affiliate advances (2,520 ) 3,235 (153 ) (562 ) — Reduction of affiliates long-term debt 395 — — (395 ) — Net cash used in investing activities (2,125 ) (64,606 ) (2,962 ) (957 ) (70,650 ) Financing Activities: Short-term borrowings — 45,022 — — 45,022 Repayment of short-term borrowings — (45,022 ) — — (45,022 ) Changes in affiliate advances 245 (423 ) (384 ) 562 — Repayment of affiliates long-term borrowings — — (395 ) 395 — Repayment of long-term debt — (10,158 ) (66 ) — (10,224 ) Advances and contributions in aid of construction — 4,663 100 — 4,763 Refunds of advances for construction — (1,908 ) (10 ) — (1,918 ) Repurchase of common stock (1,239 ) — — — (1,239 ) Dividends paid to non-affiliates (9,003 ) — — — (9,003 ) Dividends paid to affiliates — (8,665 ) (338 ) 9,003 — Net cash used in financing activities (9,997 ) (16,491 ) (1,093 ) 9,960 (17,621 ) Change in cash, cash equivalents, and restricted cash (2,486 ) (56,414 ) (1,119 ) — (60,019 ) Cash, cash equivalents, and restricted cash at beginning of period 4,728 81,453 9,171 — 95,352 Cash, cash equivalents, and restricted cash at end of period $ 2,242 $ 25,039 $ 8,052 — $ 35,333 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 31, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income (loss) $ 1,132 $ 1,084 $ (99 ) $ (985 ) $ 1,132 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity earnings of subsidiaries (998 ) — — 998 — Dividends received from affiliates 8,634 — — (8,634 ) — Depreciation and amortization 23 18,542 1,116 (23 ) 19,658 Changes in value of life insurance contracts — (319 ) — — (319 ) Allowance for equity funds used during construction — (779 ) — — (779 ) Changes in operating assets and liabilities (67 ) (11,003 ) 696 — (10,374 ) Other changes in noncurrent assets and liabilities 483 4,241 245 10 4,979 Net cash provided by operating activities 9,207 11,766 1,958 (8,634 ) 14,297 Investing activities: Utility plant expenditures — (50,509 ) (1,344 ) — (51,853 ) Changes in affiliate advances 593 955 (175 ) (1,373 ) — Issuance of affiliate short-term borrowings (325 ) — — 325 — Reduction of affiliates long-term debt 332 — — (332 ) — Life insurance proceeds — 450 — — 450 Purchase of life insurance contracts — (836 ) — — (836 ) Net cash provided by (used in) investing activities 600 (49,940 ) (1,519 ) (1,380 ) (52,239 ) Financing Activities: Short-term borrowings — 35,000 — — 35,000 Repayment of short-term borrowings (2,000 ) — — — (2,000 ) Changes in affiliate advances 715 (475 ) (1,613 ) 1,373 — Proceeds from affiliate short-term borrowings — — 325 (325 ) — Repayment of affiliates long-term borrowings — — (332 ) 332 — Repayment of long-term debt — (170 ) (116 ) — (286 ) Advances and contributions in aid for construction — 3,952 23 — 3,975 Refunds of advances for construction — (2,236 ) — — (2,236 ) Repurchase of common stock (1,119 ) — — — (1,119 ) Dividends paid to non-affiliates (8,634 ) — — — (8,634 ) Dividends paid to affiliates — (8,234 ) (400 ) 8,634 — Net cash (used in) provided by financing activities (11,038 ) 27,837 (2,113 ) 10,014 24,700 Change in cash, cash equivalents, and restricted cash (1,231 ) (10,337 ) (1,674 ) — (13,242 ) Cash, cash equivalents, and restricted cash at beginning of period 5,216 13,595 7,124 — 25,935 Cash, cash equivalents, and restricted cash at end of period $ 3,985 $ 3,258 $ 5,450 — $ 12,693 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Revenue | Summary of Significant Accounting Policies Operating revenue The following table disaggregates the Company’s operating revenue by source: Three Months Ended March 31, 2018 2017 Revenue from contracts with customers $ 134,254 $ 112,812 Regulatory balancing account revenue (2,007 ) 9,224 Total operating revenue $ 132,247 $ 122,036 Revenue from contracts with customers The Company principally generates operating revenue from contracts with customers by providing regulated water and wastewater services at tariff-rates authorized by the Commissions in the states in which they operate and non-regulated water and wastewater services at rates authorized by contracts with government agencies. Revenue from contracts with customers reflects amounts billed for the volume of consumption at authorized per unit rates, for a service charge, and for other authorized charges. The Company satisfies its performance obligation to provide water and wastewater services over time as services are rendered. The Company applies the invoice practical expedient and recognizes revenue from contracts with customers in the amount for which the Company has a right to invoice. The Company has a right to invoice for the volume of consumption, for the service charge, and for other authorized charges. The measurement of sales to customers is generally based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, the Company estimates consumption since the date of the last meter reading and a corresponding unbilled revenue is recognized. The estimate is based upon the number of unbilled days that month and the average daily customer billing rate from the previous month (which fluctuates based upon customer usage). Contract terms are generally short-term and at will by customers and, as a result, no separate financing component is recognized for their collections from customers, which generally require payment within 30 days of billing. The Company applies judgment, based principally on historical payment experience, in estimating their customers’ ability to pay. Certain customers are not billed for volumetric consumption, but are instead billed a flat rate at the beginning of each monthly service period. The amount billed is initially deferred and subsequently recognized over the monthly service period, as the performance obligation is satisfied. The deferred revenue balance, which is included in "other accrued liabilities" on the consolidated balance sheets, is inconsequential. In the following table, revenue from contracts with customers is disaggregated by class of customers: Three Months Ended March 31, 2018 2017 Residential $ 91,319 $ 75,865 Business 27,057 22,026 Industrial 7,579 6,954 Public authorities 5,444 4,146 Other 2,855 3,821 Total revenue from contracts with customers $ 134,254 $ 112,812 Regulatory balancing account revenue The Company’s ability to recover revenue requirements authorized by the California Public Utilities Commission (CPUC) in its triennial General Rate Case (GRC), is decoupled from the volume of the sales. Regulatory balancing account revenue is revenue related to rate mechanisms authorized in California by the CPUC, which allow the Company to recover the authorized revenue and are not considered contracts with customers. The Water Revenue Adjustment Mechanism (WRAM) allows the Company to recognize the adopted level of volumetric revenues. The variance between adopted volumetric revenues and actual billed volumetric revenues for metered accounts is recorded as regulatory balancing account revenue. Cost-recovery rates, such as the Modified Cost Balancing Account (MCBA), provide for recovery of the adopted levels of expenses for purchased water, purchased power, pump taxes, water conservation program costs and certain other operating expenses. Variances between adopted and actual costs are recorded as regulatory balancing account revenue. Each district's WRAM and MCBA regulatory assets and liabilities are allowed to be netted against one another. The Company recognizes regulatory balancing account revenues that have been authorized for rate recovery, are objectively determinable and probable of recovery, and are expected to be collected within 24 months. To the extent that regulatory balancing account revenue is estimated to be collectible beyond 24 months, recognition is deferred. Non-regulated Revenue Three Months Ended March 31, 2018 2017 Operating and maintenance revenue $ 3,165 $ 1,913 Other non-regulated revenue 743 1,042 Non-regulated revenue from contracts with customers $ 3,908 $ 2,955 Lease revenue $ 511 $ 507 Total non-regulated revenue $ 4,419 $ 3,462 Operating and maintenance services are provided for water and wastewater systems owned by private companies and municipalities. The Company negotiates formal agreements with the customers, under which they provide operating, maintenance and customer billing services related to the customers’ water system. The formal agreements outline the fee schedule for the services provided. The agreements typically call for a fee-per-service or a flat-rate amount per month. The Company typically satisfies its performance obligation of providing operating and maintenance services over time as services are rendered; as a result, the Company employs the invoice practical expedient and recognizes revenue in the amount that it has the right to invoice. Contract terms are generally short-term and as a result no separate financing component is recognized for its collections from customers, which generally require payment within 30 days of billing. Other non-regulated revenue primarily relates to services for the design and installation of water mains and other water infrastructure for customers outside the regulated service areas and insurance program administration. Other non-regulated revenue is inconsequential. The Company is the lessor in operating lease agreements with telecommunications companies under which cellular phone antennas are placed on the Company's property. Lease revenue is not considered revenue from contracts with customers and is recognized following current operating lease standards. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (codified in ASC 606), which amends the existing revenue recognition guidance. The Company completed an evaluation of the new revenue standard and implemented the standard on January 1, 2018 using the modified retrospective method for all contracts. The reported results for the first three months of 2018 reflect the application of ASC 606 guidance, while prior period amounts were not adjusted and continue to be reported in accordance with the accounting standards in effect for those periods. Other than increased disclosures regarding revenues related to contracts with customers, the implementation did not have a significant impact on the Company’s consolidated financial statements (see "Operating Revenue" section of note 2 above). In August of 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments . This update adds and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The Company will continue to classify proceeds from the settlement of insurance claims on the basis of the nature of the loss and from the settlement of corporate-owned life insurance policies as cash inflows on the Condensed Consolidated Statements of Cash Flows. The Company implemented the standard on January 1, 2018 and retrospectively applied the standard in the comparative period. The standard does not have a significant impact to the Company's consolidated financial statements. In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash . The update requires the Company to combine restricted cash with cash and cash equivalents when reconciling the beginning and end of period balances in the Condensed Consolidated Statements of Cash Flows. The Company implemented the standard on January 1, 2018 and retrospectively applied the standard in the comparative period. The following table shows the effect of the accounting change to the Condensed Consolidated Statements of Cash Flows: Three Months Ended March 31, 2017 Condensed Consolidated Statements of Cash Flows line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Change in restricted cash $ (260 ) $ — $ 260 Net cash used in investing activities $ (52,499 ) $ (52,239 ) $ 260 Change in cash, cash equivalents, and restricted cash $ (13,502 ) $ (13,242 ) $ 260 Cash, cash equivalents, and restricted cash at beginning of period $ 25,492 $ 25,935 $ 443 Cash, cash equivalents, and restricted cash at end of period $ 11,990 $ 12,693 $ 703 In March of 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The update requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost, including interest cost, expected return on plan assets, amortization of prior service cost/credit and actuarial gain/loss, and settlement and curtailment effects, are to be presented as non-operating items. In addition, the standard only allows the service cost component to be eligible for capitalization. The standard became effective as of January 1, 2018. The presentation amendments were applied retrospectively and the capitalization amendments were applied prospectively on and after the effective date. The company applied the practical expedient that permits the Company to use the amounts disclosed in its pension and other postretirement benefit plan footnote from the prior comparative periods as the estimation basis for applying the retrospective presentation requirements . The Commissions have authorized the Company to recover the other components of net periodic benefit cost through the Company’s capital program and thus on and after the effective date, the other components of net periodic benefit cost that have previously been recorded as part of utility plant have been recognized as a regulatory asset (see note 9). As a result, the changes required by the standard did not have a material impact on the results of operations. The following table shows the effect of the accounting change to the Condensed Consolidated Statements of (Loss) Income for the three months ended March 31, 2017: Three Months Ended March 31, 2017 Condensed Consolidated Statement of (Loss) Income line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Administrative and general $ 25,249 $ 22,746 $ (2,503 ) Total operating expenses $ 113,986 $ 111,483 $ (2,503 ) Net operating income $ 8,050 $ 10,553 $ 2,503 Other components of net periodic benefit cost $ — $ (2,503 ) $ 2,503 Net other income $ 1,298 $ (1,205 ) $ (2,503 ) New Accounting Standards Issued But Not Yet Adopted In February of 2016, the FASB issued ASU 2016-02, Leases . This update changes the accounting treatment of leases and related disclosure requirements. In November of 2017, the FASB tentatively decided to amend the new leasing guidance such that entities may elect not to restate their comparative periods in the period of adoption. The guidance requires lessees to recognize an asset and liability on the balance sheet for all of their lease obligations. Operating leases were previously not recognized on the balance sheet. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company will adopt the standard using the modified retrospective method for its existing leases and expects this standard to increase lease assets and lease liabilities on the Condensed Consolidated Balance Sheets. The Company does not expect that the guidance will have a material impact on the Condensed Consolidated Statements of (Loss) Income, Condensed Consolidated Statements of Cash Flows, and lease disclosures. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | In the following table, revenue from contracts with customers is disaggregated by class of customers: Three Months Ended March 31, 2018 2017 Residential $ 91,319 $ 75,865 Business 27,057 22,026 Industrial 7,579 6,954 Public authorities 5,444 4,146 Other 2,855 3,821 Total revenue from contracts with customers $ 134,254 $ 112,812 The following table disaggregates the Company’s operating revenue by source: Three Months Ended March 31, 2018 2017 Revenue from contracts with customers $ 134,254 $ 112,812 Regulatory balancing account revenue (2,007 ) 9,224 Total operating revenue $ 132,247 $ 122,036 Three Months Ended March 31, 2018 2017 Operating and maintenance revenue $ 3,165 $ 1,913 Other non-regulated revenue 743 1,042 Non-regulated revenue from contracts with customers $ 3,908 $ 2,955 Lease revenue $ 511 $ 507 Total non-regulated revenue $ 4,419 $ 3,462 |
Schedule of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown on the Condensed Consolidated Statements of Cash Flows: March 31, 2018 December 31, 2017 Cash and cash equivalents 34,702 94,776 Restricted cash (included in "taxes, prepaid expenses and other assets") 631 576 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 35,333 $ 95,352 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table shows the effect of the accounting change to the Condensed Consolidated Statements of Cash Flows: Three Months Ended March 31, 2017 Condensed Consolidated Statements of Cash Flows line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Change in restricted cash $ (260 ) $ — $ 260 Net cash used in investing activities $ (52,499 ) $ (52,239 ) $ 260 Change in cash, cash equivalents, and restricted cash $ (13,502 ) $ (13,242 ) $ 260 Cash, cash equivalents, and restricted cash at beginning of period $ 25,492 $ 25,935 $ 443 Cash, cash equivalents, and restricted cash at end of period $ 11,990 $ 12,693 $ 703 The following table shows the effect of the accounting change to the Condensed Consolidated Statements of (Loss) Income for the three months ended March 31, 2017: Three Months Ended March 31, 2017 Condensed Consolidated Statement of (Loss) Income line item As Reported on Form 10-Q Adjusted Balance on Form 10-Q Increase (Decrease) from Retrospective Adoption Administrative and general $ 25,249 $ 22,746 $ (2,503 ) Total operating expenses $ 113,986 $ 111,483 $ (2,503 ) Net operating income $ 8,050 $ 10,553 $ 2,503 Other components of net periodic benefit cost $ — $ (2,503 ) $ 2,503 Net other income $ 1,298 $ (1,205 ) $ (2,503 ) |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of changes in total common stockholders' equity | The Company’s changes in total common stockholders’ equity for the three months ended March 31, 2018 were as follows: Total Common Stockholders’ Equity Balance at December 31, 2017 $ 693,462 Common stock issued 1 Share-based compensation expense 635 Repurchase of common stock (1,239 ) Common stock dividends declared (9,003 ) Net loss (2,545 ) Balance at March 31, 2018 $ 681,311 |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of SARs which were dilutive | Three Months Ended March 31 2018 2017 (In thousands, except per share data) Net (loss) income available to common stockholders $ (2,545 ) $ 1,132 Weighted average common shares outstanding, basic 48,030 47,984 Weighted average common shares outstanding, dilutive 48,030 47,984 (Loss) Earnings per share - basic $ (0.05 ) $ 0.02 (Loss) Earnings per share - diluted $ (0.05 ) $ 0.02 |
Pension Plan and Other Postre22
Pension Plan and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit costs for the pension plans and other postretirement benefits | The following table lists components of net periodic benefit costs for the pension plans and other postretirement benefits. The data listed under “pension plan” includes the qualified pension plan and the non-qualified supplemental executive retirement plan. The data listed under “other benefits” is for all other postretirement benefits. Three Months Ended March 31 Pension Plan Other Benefits 2018 2017 2018 2017 Service cost $ 7,402 $ 5,865 $ 2,550 $ 2,019 Interest cost 5,995 5,791 1,484 1,491 Expected return on plan assets (6,862 ) (6,029 ) (1,416 ) (1,218 ) Amortization of prior service cost 1,263 1,445 11 11 Recognized net actuarial loss 2,797 1,752 773 649 Net periodic benefit cost $ 10,595 $ 8,824 $ 3,402 $ 2,952 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes is shown below: Three Months Ended March 31 2018 2017 Income tax (benefit) expense $ (987 ) $ 5 |
Regulatory Assets and Liabili24
Regulatory Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Regulated Operations [Abstract] | |
Schedule of regulatory assets and liabilities | Regulatory assets and liabilities were comprised of the following as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Regulatory Assets Pension and retiree group health $ 214,084 $ 214,249 Property-related temporary differences (tax benefits flowed through to customers) 87,700 87,323 Other accrued benefits 29,073 28,251 Net WRAM and MCBA long-term accounts receivable 35,278 34,879 Asset retirement obligations, net 17,473 17,126 Interim rates long-term accounts receivable 4,568 4,568 Tank coating 11,052 10,998 Health care balancing account 522 496 Pension balancing account 3,742 2,322 Other components of net periodic benefit cost 811 — Other regulatory assets 738 935 Total Regulatory Assets $ 405,041 $ 401,147 Regulatory Liabilities Future tax benefits due to customers $ 168,366 $ 168,343 Health care balancing account 9,282 7,749 Conservation program 3,797 2,273 Pension balancing account 154 364 Net WRAM and MCBA long-term payable 2,035 513 Tax accounting memorandum account 1,982 — Cost of capital memorandum account 1,151 — Other regulatory liabilities 299 464 Total Regulatory Liabilities $ 187,066 $ 179,706 |
Fair Value of Financial Asset25
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of long-term debt, including current maturities and advances for construction | Advances for construction fair values were estimated using broker quotes from companies that frequently purchase these investments. March 31, 2018 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 521,594 — $ 584,764 — $ 584,764 Advances for construction 184,479 — 77,621 — 77,621 Total $ 706,073 $ — $ 662,385 $ — $ 662,385 December 31, 2017 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities $ 531,713 $ — $ 607,492 $ — $ 607,492 Advances for construction 182,502 — 75,083 — 75,083 Total $ 714,215 — $ 682,575 $ — $ 682,575 |
Condensed Consolidating Finan26
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Consolidating Balance Sheet | CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of March 31, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,321 $ 2,824,077 $ 207,409 $ (7,196 ) $ 3,025,611 Less accumulated depreciation and amortization (943 ) (887,919 ) (55,743 ) 2,032 (942,573 ) Net utility plant 378 1,936,158 151,666 (5,164 ) 2,083,038 Current assets: Cash and cash equivalents 2,242 24,471 7,989 — 34,702 Receivables and unbilled revenue — 107,838 3,790 — 111,628 Receivables from affiliates 22,494 858 157 (23,509 ) — Other current assets 400 17,894 1,161 — 19,455 Total current assets 25,136 151,061 13,097 (23,509 ) 165,785 Other assets: Regulatory assets — 401,169 3,872 — 405,041 Investments in affiliates 686,964 — — (686,964 ) — Long-term affiliate notes receivable 26,024 — — (26,024 ) — Other assets 90 58,937 3,820 (204 ) 62,643 Total other assets 713,078 460,106 7,692 (713,192 ) 467,684 TOTAL ASSETS $ 738,592 $ 2,547,325 $ 172,455 $ (741,865 ) $ 2,716,507 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 681,311 $ 614,914 $ 77,291 $ (692,205 ) $ 681,311 Affiliate long-term debt — — 26,024 (26,024 ) — Long-term debt, less current maturities — 514,894 776 — 515,670 Total capitalization 681,311 1,129,808 104,091 (718,229 ) 1,196,981 Current liabilities: Current maturities of long-term debt — 5,604 320 — 5,924 Short-term borrowings 55,100 220,000 — — 275,100 Payables to affiliates 245 157 23,107 (23,509 ) — Accounts payable — 69,950 3,606 — 73,556 Accrued expenses and other liabilities 215 106,958 2,564 — 109,737 Total current liabilities 55,560 402,669 29,597 (23,509 ) 464,317 Unamortized investment tax credits — 1,724 — — 1,724 Deferred income taxes 1,721 188,278 2,441 (127 ) 192,313 Pension and postretirement benefits other than pensions — 256,520 — — 256,520 Regulatory liabilities and other — 229,072 3,515 — 232,587 Advances for construction — 183,980 499 — 184,479 Contributions in aid of construction — 155,274 32,312 — 187,586 TOTAL CAPITALIZATION AND LIABILITIES $ 738,592 $ 2,547,325 $ 172,455 $ (741,865 ) $ 2,716,507 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,321 $ 2,771,259 $ 204,795 $ (7,196 ) $ 2,970,179 Less accumulated depreciation and amortization (919 ) (868,762 ) (54,543 ) 2,010 (922,214 ) Net utility plant 402 1,902,497 150,252 (5,186 ) 2,047,965 Current assets: Cash and cash equivalents 4,728 80,940 9,108 — 94,776 Receivables and unbilled revenue — 110,928 4,526 — 115,454 Receivables from affiliates 19,952 4,093 43 (24,088 ) — Other current assets 80 16,569 994 — 17,643 Total current assets 24,760 212,530 14,671 (24,088 ) 227,873 Other assets: Regulatory assets — 397,333 3,814 — 401,147 Investments in affiliates 698,690 — — (698,690 ) — Long-term affiliate notes receivable 26,441 — — (26,441 ) — Other assets 192 59,581 3,822 (205 ) 63,390 Total other assets 725,323 456,914 7,636 (725,336 ) 464,537 TOTAL ASSETS $ 750,485 $ 2,571,941 $ 172,559 $ (754,610 ) $ 2,740,375 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 693,462 $ 626,300 77,647 $ (703,947 ) $ 693,462 Affiliate long-term debt — — 26,441 (26,441 ) — Long-term debt, less current maturities — 514,952 841 — 515,793 Total capitalization 693,462 1,141,252 104,929 (730,388 ) 1,209,255 Current liabilities: Current maturities of long-term debt — 15,598 322 — 15,920 Short-term borrowings 55,100 220,000 — — 275,100 Payables to affiliates — 580 23,508 (24,088 ) — Accounts payable — 90,561 3,394 — 93,955 Accrued expenses and other liabilities 271 104,002 1,711 — 105,984 Total current liabilities 55,371 430,741 28,935 (24,088 ) 490,959 Unamortized investment tax credits — 1,724 — — 1,724 Deferred income taxes 1,652 189,004 2,424 (134 ) 192,946 Pension and postretirement benefits other than pensions — 252,141 — — 252,141 Regulatory and other liabilities — 220,779 3,348 — 224,127 Advances for construction — 181,979 523 — 182,502 Contributions in aid of construction — 154,321 32,400 — 186,721 TOTAL CAPITALIZATION AND LIABILITIES $ 750,485 $ 2,571,941 $ 172,559 $ (754,610 ) $ 2,740,375 |
Schedule of Condensed Consolidating Statement of Income | CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended March 31, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 123,570 $ 8,677 $ — $ 132,247 Operating expenses: Operations: Water production costs — 45,623 1,983 — 47,606 Administrative and general — 23,606 2,713 — 26,319 Other operations — 16,217 1,569 (146 ) 17,640 Maintenance — 5,244 195 — 5,439 Depreciation and amortization 23 19,613 1,101 (22 ) 20,715 Income tax benefit (78 ) (340 ) (8 ) 197 (229 ) Property and other taxes — 6,007 697 — 6,704 Total operating (income) expenses (55 ) 115,970 8,250 29 124,194 Net operating income 55 7,600 427 (29 ) 8,053 Other income and expenses: Non-regulated revenue 531 4,244 320 (676 ) 4,419 Non-regulated expenses — (5,293 ) (144 ) — (5,437 ) Other components of net periodic benefit cost — (2,447 ) (99 ) — (2,546 ) Allowance for equity funds used during construction — 911 — — 911 Income tax (expense) benefit on other income and expenses (148 ) 741 (24 ) 189 758 Total other income (loss) 383 (1,844 ) 53 (487 ) (1,895 ) Interest: Interest expense 258 8,934 537 (531 ) 9,198 Allowance for borrowed funds used during construction — (458 ) (37 ) — (495 ) Net interest expense 258 8,476 500 (531 ) 8,703 Equity loss of subsidiaries (2,725 ) — — 2,725 — Net loss $ (2,545 ) $ (2,720 ) $ (20 ) $ 2,740 $ (2,545 ) CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended March 31, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 113,342 $ 8,694 $ — $ 122,036 Operating expenses: Operations: Water production costs — 40,189 1,879 — 42,068 Administrative and general — 20,126 2,620 — 22,746 Other operations — 14,400 1,850 (126 ) 16,124 Maintenance — 5,906 206 — 6,112 Depreciation and amortization 23 18,111 1,090 (23 ) 19,201 Income tax benefit (103 ) (946 ) (92 ) 257 (884 ) Property and other taxes (4 ) 5,412 708 — 6,116 Total operating (income) expenses (84 ) 103,198 8,261 108 111,483 Net operating income 84 10,144 433 (108 ) 10,553 Other income and expenses: Non-regulated revenue 481 3,135 454 (608 ) 3,462 Non-regulated expenses — (1,747 ) (307 ) — (2,054 ) Other components of net periodic benefit cost — (2,350 ) (153 ) — (2,503 ) Allowance for equity funds used during construction — 779 — — 779 Income tax expense on other income and expenses (196 ) (883 ) (58 ) 248 (889 ) Total other income (loss) 285 (1,066 ) (64 ) (360 ) (1,205 ) Interest: Interest expense 235 8,470 486 (481 ) 8,710 Allowance for borrowed funds used during construction — (476 ) (18 ) — (494 ) Net interest expense 235 7,994 468 (481 ) 8,216 Equity earnings of subsidiaries 998 — — (998 ) — Net income $ 1,132 $ 1,084 $ (99 ) $ (985 ) $ 1,132 |
Schedule of Condensed Consolidating Statement of Cash Flows | CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 31, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net loss $ (2,545 ) $ (2,720 ) $ (20 ) $ 2,740 $ (2,545 ) Adjustments to reconcile net loss to net cash provided by operating activities: Equity loss of subsidiaries 2,725 — — (2,725 ) — Dividends received from affiliates 9,003 — — (9,003 ) — Depreciation and amortization 23 20,081 1,125 (22 ) 21,207 Changes in value of life insurance contracts — 1,137 — — 1,137 Allowance for equity funds used during construction — (911 ) — — (911 ) Changes in operating assets and liabilities (376 ) 1,728 1,729 — 3,081 Other changes in noncurrent assets and liabilities 806 5,368 102 7 6,283 Net cash provided by operating activities 9,636 24,683 2,936 (9,003 ) 28,252 Investing activities: Utility plant expenditures — (67,841 ) (2,809 ) — (70,650 ) Changes in affiliate advances (2,520 ) 3,235 (153 ) (562 ) — Reduction of affiliates long-term debt 395 — — (395 ) — Net cash used in investing activities (2,125 ) (64,606 ) (2,962 ) (957 ) (70,650 ) Financing Activities: Short-term borrowings — 45,022 — — 45,022 Repayment of short-term borrowings — (45,022 ) — — (45,022 ) Changes in affiliate advances 245 (423 ) (384 ) 562 — Repayment of affiliates long-term borrowings — — (395 ) 395 — Repayment of long-term debt — (10,158 ) (66 ) — (10,224 ) Advances and contributions in aid of construction — 4,663 100 — 4,763 Refunds of advances for construction — (1,908 ) (10 ) — (1,918 ) Repurchase of common stock (1,239 ) — — — (1,239 ) Dividends paid to non-affiliates (9,003 ) — — — (9,003 ) Dividends paid to affiliates — (8,665 ) (338 ) 9,003 — Net cash used in financing activities (9,997 ) (16,491 ) (1,093 ) 9,960 (17,621 ) Change in cash, cash equivalents, and restricted cash (2,486 ) (56,414 ) (1,119 ) — (60,019 ) Cash, cash equivalents, and restricted cash at beginning of period 4,728 81,453 9,171 — 95,352 Cash, cash equivalents, and restricted cash at end of period $ 2,242 $ 25,039 $ 8,052 — $ 35,333 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the three months ended March 31, 2017 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income (loss) $ 1,132 $ 1,084 $ (99 ) $ (985 ) $ 1,132 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity earnings of subsidiaries (998 ) — — 998 — Dividends received from affiliates 8,634 — — (8,634 ) — Depreciation and amortization 23 18,542 1,116 (23 ) 19,658 Changes in value of life insurance contracts — (319 ) — — (319 ) Allowance for equity funds used during construction — (779 ) — — (779 ) Changes in operating assets and liabilities (67 ) (11,003 ) 696 — (10,374 ) Other changes in noncurrent assets and liabilities 483 4,241 245 10 4,979 Net cash provided by operating activities 9,207 11,766 1,958 (8,634 ) 14,297 Investing activities: Utility plant expenditures — (50,509 ) (1,344 ) — (51,853 ) Changes in affiliate advances 593 955 (175 ) (1,373 ) — Issuance of affiliate short-term borrowings (325 ) — — 325 — Reduction of affiliates long-term debt 332 — — (332 ) — Life insurance proceeds — 450 — — 450 Purchase of life insurance contracts — (836 ) — — (836 ) Net cash provided by (used in) investing activities 600 (49,940 ) (1,519 ) (1,380 ) (52,239 ) Financing Activities: Short-term borrowings — 35,000 — — 35,000 Repayment of short-term borrowings (2,000 ) — — — (2,000 ) Changes in affiliate advances 715 (475 ) (1,613 ) 1,373 — Proceeds from affiliate short-term borrowings — — 325 (325 ) — Repayment of affiliates long-term borrowings — — (332 ) 332 — Repayment of long-term debt — (170 ) (116 ) — (286 ) Advances and contributions in aid for construction — 3,952 23 — 3,975 Refunds of advances for construction — (2,236 ) — — (2,236 ) Repurchase of common stock (1,119 ) — — — (1,119 ) Dividends paid to non-affiliates (8,634 ) — — — (8,634 ) Dividends paid to affiliates — (8,234 ) (400 ) 8,634 — Net cash (used in) provided by financing activities (11,038 ) 27,837 (2,113 ) 10,014 24,700 Change in cash, cash equivalents, and restricted cash (1,231 ) (10,337 ) (1,674 ) — (13,242 ) Cash, cash equivalents, and restricted cash at beginning of period 5,216 13,595 7,124 — 25,935 Cash, cash equivalents, and restricted cash at end of period $ 3,985 $ 3,258 $ 5,450 — $ 12,693 |
Organization and Operations a27
Organization and Operations and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue from contracts with customers | $ 134,254 | $ 112,812 | ||||
Maximum collection period in which deferred net WRAM and MCBA revenues and associated costs will be recognized | 24 months | |||||
Regulatory balancing account revenue | $ (2,007) | 9,224 | ||||
Operating revenue | 132,247 | 122,036 | ||||
Lease revenue | 511 | 507 | ||||
Non-regulated revenue | 4,419 | 3,462 | ||||
Cash and cash equivalents | $ 34,702 | $ 94,776 | $ 12,693 | $ 25,935 | ||
Restricted cash (included in taxes, prepaid expenses and other assets) | 631 | 576 | ||||
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | 95,352 | 25,935 | $ 35,333 | $ 95,352 | 12,693 | 25,935 |
Change in restricted cash | 0 | |||||
Net cash used in investing activities | (70,650) | (52,239) | ||||
Change in cash, cash equivalents, and restricted cash | (60,019) | (13,242) | ||||
Cash, cash equivalents, and restricted cash at beginning of period | 95,352 | 25,935 | ||||
Cash, cash equivalents, and restricted cash at end of period | 35,333 | 12,693 | ||||
Administrative and general | 26,319 | 22,746 | ||||
Total operating expenses | 124,194 | 111,483 | ||||
Net operating income | 8,053 | 10,553 | ||||
Other components of net periodic benefit cost | (2,546) | (2,503) | ||||
Net other income | (1,895) | (1,205) | ||||
As Reported on Form 10-Q | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | 25,492 | 11,990 | 25,492 | |||
Change in restricted cash | (260) | |||||
Net cash used in investing activities | (52,499) | |||||
Change in cash, cash equivalents, and restricted cash | (13,502) | |||||
Cash, cash equivalents, and restricted cash at beginning of period | 25,492 | |||||
Cash, cash equivalents, and restricted cash at end of period | 11,990 | |||||
Administrative and general | 25,249 | |||||
Total operating expenses | 113,986 | |||||
Net operating income | 8,050 | |||||
Other components of net periodic benefit cost | 0 | |||||
Net other income | 1,298 | |||||
Increase (Decrease) from Retrospective Adoption | Accounting Standards Update 2016-18 | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | 443 | $ 703 | $ 443 | |||
Change in restricted cash | 260 | |||||
Net cash used in investing activities | 260 | |||||
Change in cash, cash equivalents, and restricted cash | 260 | |||||
Cash, cash equivalents, and restricted cash at beginning of period | 443 | |||||
Cash, cash equivalents, and restricted cash at end of period | 703 | |||||
Increase (Decrease) from Retrospective Adoption | Accounting Standards Update 2017-07 | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Administrative and general | (2,503) | |||||
Total operating expenses | (2,503) | |||||
Net operating income | 2,503 | |||||
Other components of net periodic benefit cost | 2,503 | |||||
Net other income | (2,503) | |||||
Residential | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue from contracts with customers | 91,319 | 75,865 | ||||
Business | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue from contracts with customers | 27,057 | 22,026 | ||||
Industrial | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue from contracts with customers | 7,579 | 6,954 | ||||
Public authorities | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue from contracts with customers | 5,444 | 4,146 | ||||
Other | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue from contracts with customers | 2,855 | 3,821 | ||||
Regulated water and wastewater services | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue from contracts with customers | 134,254 | 112,812 | ||||
Operating revenue | 132,247 | 122,036 | ||||
Operating and maintenance revenue | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue from contracts with customers | 3,165 | 1,913 | ||||
Other non-regulated revenue | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue from contracts with customers | 743 | 1,042 | ||||
Non-regulated revenue | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue from contracts with customers | 3,908 | 2,955 | ||||
Non-regulated revenue | $ 4,419 | $ 3,462 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - Equity Incentive Plan - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock-based Compensation | ||
Recorded compensation costs for the RSAs and RSUs | $ 0.7 | |
Restricted Stock Awards (RSAs) | ||
Stock-based Compensation | ||
Weighted average grant date fair value (in dollars per share) | $ 35.40 | $ 36.75 |
Restricted Stock Awards (RSAs) | Officers and Directors | ||
Stock-based Compensation | ||
Awards granted (in shares) | 46,135 | 48,717 |
Awards canceled (in shares) | 9,464 | 10,902 |
Restricted Stock Awards (RSAs) | Employees | ||
Stock-based Compensation | ||
Vesting period | 36 months | |
Restricted Stock Awards (RSAs) | Director | ||
Stock-based Compensation | ||
Vesting period | 12 months | |
Restricted Stock Unit Award (RSUs) | Officer | ||
Stock-based Compensation | ||
Awards granted (in shares) | 28,594 | 31,389 |
Weighted average grant date fair value (in dollars per share) | $ 35.40 | $ 36.75 |
Awards issued (in shares) | 48,753 | 38,709 |
Awards canceled (in shares) | 24,009 | 19,735 |
Expiration period of award | 3 years |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Changes in total common stockholders' equity | ||
Balance at December 31, 2017 | $ 693,462 | |
Common stock issued | 1 | |
Share-based compensation expense | 635 | |
Repurchase of common stock | (1,239) | $ (1,119) |
Common stock dividends declared | (9,003) | |
Net (loss) income | (2,545) | $ 1,132 |
Balance at March 31, 2018 | $ 681,311 |
(Loss) Earnings Per Share (Deta
(Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income available to common stockholders | $ (2,545) | $ 1,132 |
Weighted average common shares outstanding, basic (in shares) | 48,030 | 47,984 |
Weighed average common shares outstanding, dilutive (in shares) | 48,030 | 47,984 |
Earnings per share - basic (in dollars per share) | $ (0.05) | $ 0.02 |
Earnings per share - diluted (in dollars per share) | $ (0.05) | $ 0.02 |
Pension Plan and Other Postre32
Pension Plan and Other Postretirement Benefits (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension Plan | ||
Pension Plan and Other Postretirement Benefits | ||
Employer cash contributions | $ 7,300,000 | $ 7,500,000 |
Estimated cash contributions in the current fiscal year | 33,400,000 | |
Components of the pension plans and other postretirement benefits | ||
Service cost | 7,402,000 | 5,865,000 |
Interest cost | 5,995,000 | 5,791,000 |
Expected return on plan assets | (6,862,000) | (6,029,000) |
Amortization of prior service cost | 1,263,000 | 1,445,000 |
Recognized net actuarial loss | 2,797,000 | 1,752,000 |
Net periodic benefit cost | 10,595,000 | 8,824,000 |
Other Benefits | ||
Pension Plan and Other Postretirement Benefits | ||
Employer cash contributions | 0 | 0 |
Estimated cash contributions in the current fiscal year | 10,100,000 | |
Components of the pension plans and other postretirement benefits | ||
Service cost | 2,550,000 | 2,019,000 |
Interest cost | 1,484,000 | 1,491,000 |
Expected return on plan assets | (1,416,000) | (1,218,000) |
Amortization of prior service cost | 11,000 | 11,000 |
Recognized net actuarial loss | 773,000 | 649,000 |
Net periodic benefit cost | $ 3,402,000 | $ 2,952,000 |
Short-term and Long-term Borr33
Short-term and Long-term Borrowings (Details) - Revolving Credit Facility - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Average borrowing rate | 2.45% | 1.60% | |
Parent Company | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings | $ 55.1 | $ 55.1 | |
Cal Water | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings | $ 220 | $ 220 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||
Income tax (benefit) expense | $ (987) | $ 5 | ||
Decrease in operating tax benefit | 700 | 200 | ||
Decrease in non-operating income tax expense | 1,600 | $ 800 | ||
Benefit from decrease in corporate federal tax rate | 1,500 | |||
Ratepayer net refund | $ 108,000 | |||
Unrecognized tax benefits | 11,300 | 10,500 | ||
Tax benefits that, if recognized, would affect the effective tax rate | $ 2,100 | $ 2,300 | ||
Scenario, Forecast | ||||
Income Taxes [Line Items] | ||||
Effective tax rate estimate | (23.00%) |
Regulatory Assets and Liabili35
Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Regulatory Assets and Liabilities | ||
Regulatory assets | $ 405,041 | $ 401,147 |
Regulatory liabilities | 187,066 | 179,706 |
Short-term portion of the regulatory assets | 34,119 | 36,783 |
Short-term portion of the regulatory liabilities | 56,206 | 59,303 |
Property-related temporary differences (tax benefits flowed through to customers) | ||
Regulatory Assets and Liabilities | ||
Regulatory liabilities | 168,366 | 168,343 |
Health care balancing account | ||
Regulatory Assets and Liabilities | ||
Regulatory liabilities | 9,282 | 7,749 |
Conservation program | ||
Regulatory Assets and Liabilities | ||
Regulatory liabilities | 3,797 | 2,273 |
Pension balancing account | ||
Regulatory Assets and Liabilities | ||
Regulatory liabilities | 154 | 364 |
Net WRAM and MCBA long-term payable | ||
Regulatory Assets and Liabilities | ||
Regulatory liabilities | 2,035 | 513 |
Tax accounting memorandum account | ||
Regulatory Assets and Liabilities | ||
Regulatory liabilities | 1,982 | 0 |
Cost of capital memorandum account | ||
Regulatory Assets and Liabilities | ||
Regulatory liabilities | 1,151 | 0 |
Other regulatory liabilities | ||
Regulatory Assets and Liabilities | ||
Regulatory liabilities | 299 | 464 |
Pension and retiree group health | ||
Regulatory Assets and Liabilities | ||
Regulatory assets | 214,084 | 214,249 |
Property-related temporary differences (tax benefits flowed through to customers) | ||
Regulatory Assets and Liabilities | ||
Regulatory assets | 87,700 | 87,323 |
Other accrued benefits | ||
Regulatory Assets and Liabilities | ||
Regulatory assets | 29,073 | 28,251 |
Net WRAM and MCBA long-term accounts receivable | ||
Regulatory Assets and Liabilities | ||
Regulatory assets | 35,278 | 34,879 |
Asset retirement obligations, net | ||
Regulatory Assets and Liabilities | ||
Regulatory assets | 17,473 | 17,126 |
Interim rates long-term accounts receivable | ||
Regulatory Assets and Liabilities | ||
Regulatory assets | 4,568 | 4,568 |
Tank coating | ||
Regulatory Assets and Liabilities | ||
Regulatory assets | 11,052 | 10,998 |
Health care balancing account | ||
Regulatory Assets and Liabilities | ||
Regulatory assets | 522 | 496 |
Pension balancing account | ||
Regulatory Assets and Liabilities | ||
Regulatory assets | 3,742 | 2,322 |
Other components of net periodic benefit cost | ||
Regulatory Assets and Liabilities | ||
Regulatory assets | 811 | 0 |
Other regulatory assets | ||
Regulatory Assets and Liabilities | ||
Regulatory assets | $ 738 | $ 935 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Contingency loss recognized liability | $ 6.9 | $ 6.1 |
Fair Value of Financial Asset37
Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value of Financial Assets and Liabilities | ||
Risk premium (as a percent) | 1.70% | |
Advances for construction | $ 184,479 | $ 182,502 |
Level 1 | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities | 0 | 0 |
Advances for construction | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities | 584,764 | 607,492 |
Advances for construction | 77,621 | 75,083 |
Total | 662,385 | 682,575 |
Level 3 | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities | 0 | 0 |
Advances for construction | 0 | 0 |
Total | 0 | 0 |
Cost | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities | 521,594 | 531,713 |
Advances for construction | 184,479 | 182,502 |
Total | 706,073 | 714,215 |
Total | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities | 584,764 | 607,492 |
Advances for construction | 77,621 | 75,083 |
Total | $ 662,385 | $ 682,575 |
Condensed Consolidating Finan38
Condensed Consolidating Financial Statements - Additional Information (Details) - USD ($) | Mar. 31, 2018 | Nov. 17, 2010 | Apr. 17, 2009 |
Cal Water | |||
Debt Instrument [Line Items] | |||
Ownership interest (as a percent) | 100.00% | ||
All Other Subsidiaries | |||
Debt Instrument [Line Items] | |||
Ownership interest (as a percent) | 100.00% | ||
First Mortgage Bonds, 5.875% due 2019 | Cal Water | |||
Debt Instrument [Line Items] | |||
Debt issued | $ 100,000,000 | ||
Interest rate | 5.875% | ||
First Mortgage Bonds, 5.500% due 2040 | Cal Water | |||
Debt Instrument [Line Items] | |||
Debt issued | $ 100,000,000 | ||
Interest rate | 5.50% |
Condensed Consolidating Finan39
Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Utility plant: | ||||
Utility plant | $ 3,025,611 | $ 2,970,179 | ||
Less accumulated depreciation and amortization | (942,573) | (922,214) | ||
Net utility plant | 2,083,038 | 2,047,965 | ||
Current assets: | ||||
Cash and cash equivalents | 34,702 | 94,776 | $ 12,693 | $ 25,935 |
Receivables and unbilled revenue, net | 111,628 | 115,454 | ||
Receivables from affiliates | 0 | 0 | ||
Other current assets | 19,455 | 17,643 | ||
Total current assets | 165,785 | 227,873 | ||
Other assets: | ||||
Regulatory assets | 405,041 | 401,147 | ||
Investments in affiliates | 0 | 0 | ||
Long-term affiliate notes receivable | 0 | 0 | ||
Other assets | 62,643 | 63,390 | ||
Total other assets | 467,684 | 464,537 | ||
TOTAL ASSETS | 2,716,507 | 2,740,375 | ||
Capitalization: | ||||
Common stockholders' equity | 681,311 | 693,462 | ||
Affiliate long-term debt | 0 | 0 | ||
Long-term debt, less current maturities | 515,670 | 515,793 | ||
Total capitalization | 1,196,981 | 1,209,255 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 5,924 | 15,920 | ||
Short-term borrowings | 275,100 | 275,100 | ||
Payables to affiliates | 0 | 0 | ||
Accounts payable | 73,556 | 93,955 | ||
Accrued expenses and other liabilities | 109,737 | 105,984 | ||
Total current liabilities | 464,317 | 490,959 | ||
Unamortized investment tax credits | 1,724 | 1,724 | ||
Deferred income taxes | 192,313 | 192,946 | ||
Pension and postretirement benefits other than pensions | 256,520 | 252,141 | ||
Regulatory liabilities and other | 232,587 | 224,127 | ||
Advances for construction | 184,479 | 182,502 | ||
Contributions in aid of construction | 187,586 | 186,721 | ||
TOTAL CAPITALIZATION AND LIABILITIES | 2,716,507 | 2,740,375 | ||
Consolidating Adjustments | ||||
Utility plant: | ||||
Utility plant | (7,196) | (7,196) | ||
Less accumulated depreciation and amortization | 2,032 | 2,010 | ||
Net utility plant | (5,164) | (5,186) | ||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables and unbilled revenue, net | 0 | 0 | ||
Receivables from affiliates | (23,509) | (24,088) | ||
Other current assets | 0 | 0 | ||
Total current assets | (23,509) | (24,088) | ||
Other assets: | ||||
Regulatory assets | 0 | 0 | ||
Investments in affiliates | (686,964) | (698,690) | ||
Long-term affiliate notes receivable | (26,024) | (26,441) | ||
Other assets | (204) | (205) | ||
Total other assets | (713,192) | (725,336) | ||
TOTAL ASSETS | (741,865) | (754,610) | ||
Capitalization: | ||||
Common stockholders' equity | (692,205) | (703,947) | ||
Affiliate long-term debt | (26,024) | (26,441) | ||
Long-term debt, less current maturities | 0 | 0 | ||
Total capitalization | (718,229) | (730,388) | ||
Current liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Short-term borrowings | 0 | 0 | ||
Payables to affiliates | (23,509) | (24,088) | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 0 | 0 | ||
Total current liabilities | (23,509) | (24,088) | ||
Unamortized investment tax credits | 0 | 0 | ||
Deferred income taxes | (127) | (134) | ||
Pension and postretirement benefits other than pensions | 0 | 0 | ||
Regulatory liabilities and other | 0 | 0 | ||
Advances for construction | 0 | 0 | ||
Contributions in aid of construction | 0 | 0 | ||
TOTAL CAPITALIZATION AND LIABILITIES | (741,865) | (754,610) | ||
Parent Company | Reportable Legal Entities | ||||
Utility plant: | ||||
Utility plant | 1,321 | 1,321 | ||
Less accumulated depreciation and amortization | (943) | (919) | ||
Net utility plant | 378 | 402 | ||
Current assets: | ||||
Cash and cash equivalents | 2,242 | 4,728 | 3,985 | 5,216 |
Receivables and unbilled revenue, net | 0 | 0 | ||
Receivables from affiliates | 22,494 | 19,952 | ||
Other current assets | 400 | 80 | ||
Total current assets | 25,136 | 24,760 | ||
Other assets: | ||||
Regulatory assets | 0 | 0 | ||
Investments in affiliates | 686,964 | 698,690 | ||
Long-term affiliate notes receivable | 26,024 | 26,441 | ||
Other assets | 90 | 192 | ||
Total other assets | 713,078 | 725,323 | ||
TOTAL ASSETS | 738,592 | 750,485 | ||
Capitalization: | ||||
Common stockholders' equity | 681,311 | 693,462 | ||
Affiliate long-term debt | 0 | 0 | ||
Long-term debt, less current maturities | 0 | 0 | ||
Total capitalization | 681,311 | 693,462 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Short-term borrowings | 55,100 | 55,100 | ||
Payables to affiliates | 245 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 215 | 271 | ||
Total current liabilities | 55,560 | 55,371 | ||
Unamortized investment tax credits | 0 | 0 | ||
Deferred income taxes | 1,721 | 1,652 | ||
Pension and postretirement benefits other than pensions | 0 | 0 | ||
Regulatory liabilities and other | 0 | 0 | ||
Advances for construction | 0 | 0 | ||
Contributions in aid of construction | 0 | 0 | ||
TOTAL CAPITALIZATION AND LIABILITIES | 738,592 | 750,485 | ||
Cal Water | Reportable Legal Entities | ||||
Utility plant: | ||||
Utility plant | 2,824,077 | 2,771,259 | ||
Less accumulated depreciation and amortization | (887,919) | (868,762) | ||
Net utility plant | 1,936,158 | 1,902,497 | ||
Current assets: | ||||
Cash and cash equivalents | 24,471 | 80,940 | 3,258 | 13,595 |
Receivables and unbilled revenue, net | 107,838 | 110,928 | ||
Receivables from affiliates | 858 | 4,093 | ||
Other current assets | 17,894 | 16,569 | ||
Total current assets | 151,061 | 212,530 | ||
Other assets: | ||||
Regulatory assets | 401,169 | 397,333 | ||
Investments in affiliates | 0 | 0 | ||
Long-term affiliate notes receivable | 0 | 0 | ||
Other assets | 58,937 | 59,581 | ||
Total other assets | 460,106 | 456,914 | ||
TOTAL ASSETS | 2,547,325 | 2,571,941 | ||
Capitalization: | ||||
Common stockholders' equity | 614,914 | 626,300 | ||
Affiliate long-term debt | 0 | 0 | ||
Long-term debt, less current maturities | 514,894 | 514,952 | ||
Total capitalization | 1,129,808 | 1,141,252 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 5,604 | 15,598 | ||
Short-term borrowings | 220,000 | 220,000 | ||
Payables to affiliates | 157 | 580 | ||
Accounts payable | 69,950 | 90,561 | ||
Accrued expenses and other liabilities | 106,958 | 104,002 | ||
Total current liabilities | 402,669 | 430,741 | ||
Unamortized investment tax credits | 1,724 | 1,724 | ||
Deferred income taxes | 188,278 | 189,004 | ||
Pension and postretirement benefits other than pensions | 256,520 | 252,141 | ||
Regulatory liabilities and other | 229,072 | 220,779 | ||
Advances for construction | 183,980 | 181,979 | ||
Contributions in aid of construction | 155,274 | 154,321 | ||
TOTAL CAPITALIZATION AND LIABILITIES | 2,547,325 | 2,571,941 | ||
All Other Subsidiaries | Reportable Legal Entities | ||||
Utility plant: | ||||
Utility plant | 207,409 | 204,795 | ||
Less accumulated depreciation and amortization | (55,743) | (54,543) | ||
Net utility plant | 151,666 | 150,252 | ||
Current assets: | ||||
Cash and cash equivalents | 7,989 | 9,108 | $ 5,450 | $ 7,124 |
Receivables and unbilled revenue, net | 3,790 | 4,526 | ||
Receivables from affiliates | 157 | 43 | ||
Other current assets | 1,161 | 994 | ||
Total current assets | 13,097 | 14,671 | ||
Other assets: | ||||
Regulatory assets | 3,872 | 3,814 | ||
Investments in affiliates | 0 | 0 | ||
Long-term affiliate notes receivable | 0 | 0 | ||
Other assets | 3,820 | 3,822 | ||
Total other assets | 7,692 | 7,636 | ||
TOTAL ASSETS | 172,455 | 172,559 | ||
Capitalization: | ||||
Common stockholders' equity | 77,291 | 77,647 | ||
Affiliate long-term debt | 26,024 | 26,441 | ||
Long-term debt, less current maturities | 776 | 841 | ||
Total capitalization | 104,091 | 104,929 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 320 | 322 | ||
Short-term borrowings | 0 | 0 | ||
Payables to affiliates | 23,107 | 23,508 | ||
Accounts payable | 3,606 | 3,394 | ||
Accrued expenses and other liabilities | 2,564 | 1,711 | ||
Total current liabilities | 29,597 | 28,935 | ||
Unamortized investment tax credits | 0 | 0 | ||
Deferred income taxes | 2,441 | 2,424 | ||
Pension and postretirement benefits other than pensions | 0 | 0 | ||
Regulatory liabilities and other | 3,515 | 3,348 | ||
Advances for construction | 499 | 523 | ||
Contributions in aid of construction | 32,312 | 32,400 | ||
TOTAL CAPITALIZATION AND LIABILITIES | $ 172,455 | $ 172,559 |
Condensed Consolidating Finan40
Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Consolidating Financial Statements | ||
Operating revenue | $ 132,247 | $ 122,036 |
Operations: | ||
Water production costs | 47,606 | 42,068 |
Administrative and general | 26,319 | 22,746 |
Other operations | 17,640 | 16,124 |
Maintenance | 5,439 | 6,112 |
Depreciation and amortization | 20,715 | 19,201 |
Income tax (benefit) expense | (229) | (884) |
Property and other taxes | 6,704 | 6,116 |
Total operating expenses | 124,194 | 111,483 |
Net operating income | 8,053 | 10,553 |
Other income and expenses: | ||
Non-regulated revenue | 4,419 | 3,462 |
Non-regulated expenses | (5,437) | (2,054) |
Other components of net periodic benefit cost | (2,546) | (2,503) |
Allowance for equity funds used during construction | 911 | 779 |
Income tax expense on other income and expenses | 758 | (889) |
Net other income | (1,895) | (1,205) |
Interest expense: | ||
Interest expense | 9,198 | 8,710 |
Allowance for borrowed funds used during construction | (495) | (494) |
Net interest expense | 8,703 | 8,216 |
Equity earnings of subsidiaries | 0 | 0 |
Net income | (2,545) | 1,132 |
Consolidating Adjustments | ||
Condensed Consolidating Financial Statements | ||
Operating revenue | 0 | 0 |
Operations: | ||
Water production costs | 0 | 0 |
Administrative and general | 0 | 0 |
Other operations | (146) | (126) |
Maintenance | 0 | 0 |
Depreciation and amortization | (22) | (23) |
Income tax (benefit) expense | 197 | 257 |
Property and other taxes | 0 | 0 |
Total operating expenses | 29 | 108 |
Net operating income | (29) | (108) |
Other income and expenses: | ||
Non-regulated revenue | (676) | (608) |
Non-regulated expenses | 0 | 0 |
Other components of net periodic benefit cost | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 |
Income tax expense on other income and expenses | 189 | 248 |
Net other income | (487) | (360) |
Interest expense: | ||
Interest expense | (531) | (481) |
Allowance for borrowed funds used during construction | 0 | 0 |
Net interest expense | (531) | (481) |
Equity earnings of subsidiaries | 2,725 | (998) |
Net income | 2,740 | (985) |
Parent Company | Reportable Legal Entities | ||
Condensed Consolidating Financial Statements | ||
Operating revenue | 0 | 0 |
Operations: | ||
Water production costs | 0 | 0 |
Administrative and general | 0 | 0 |
Other operations | 0 | 0 |
Maintenance | 0 | 0 |
Depreciation and amortization | 23 | 23 |
Income tax (benefit) expense | (78) | (103) |
Property and other taxes | 0 | (4) |
Total operating expenses | (55) | (84) |
Net operating income | 55 | 84 |
Other income and expenses: | ||
Non-regulated revenue | 531 | 481 |
Non-regulated expenses | 0 | 0 |
Other components of net periodic benefit cost | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 |
Income tax expense on other income and expenses | (148) | (196) |
Net other income | 383 | 285 |
Interest expense: | ||
Interest expense | 258 | 235 |
Allowance for borrowed funds used during construction | 0 | 0 |
Net interest expense | 258 | 235 |
Equity earnings of subsidiaries | (2,725) | 998 |
Net income | (2,545) | 1,132 |
Cal Water | Reportable Legal Entities | ||
Condensed Consolidating Financial Statements | ||
Operating revenue | 123,570 | 113,342 |
Operations: | ||
Water production costs | 45,623 | 40,189 |
Administrative and general | 23,606 | 20,126 |
Other operations | 16,217 | 14,400 |
Maintenance | 5,244 | 5,906 |
Depreciation and amortization | 19,613 | 18,111 |
Income tax (benefit) expense | (340) | (946) |
Property and other taxes | 6,007 | 5,412 |
Total operating expenses | 115,970 | 103,198 |
Net operating income | 7,600 | 10,144 |
Other income and expenses: | ||
Non-regulated revenue | 4,244 | 3,135 |
Non-regulated expenses | (5,293) | (1,747) |
Other components of net periodic benefit cost | (2,447) | (2,350) |
Allowance for equity funds used during construction | 911 | 779 |
Income tax expense on other income and expenses | 741 | (883) |
Net other income | (1,844) | (1,066) |
Interest expense: | ||
Interest expense | 8,934 | 8,470 |
Allowance for borrowed funds used during construction | (458) | (476) |
Net interest expense | 8,476 | 7,994 |
Equity earnings of subsidiaries | 0 | 0 |
Net income | (2,720) | 1,084 |
All Other Subsidiaries | Reportable Legal Entities | ||
Condensed Consolidating Financial Statements | ||
Operating revenue | 8,677 | 8,694 |
Operations: | ||
Water production costs | 1,983 | 1,879 |
Administrative and general | 2,713 | 2,620 |
Other operations | 1,569 | 1,850 |
Maintenance | 195 | 206 |
Depreciation and amortization | 1,101 | 1,090 |
Income tax (benefit) expense | (8) | (92) |
Property and other taxes | 697 | 708 |
Total operating expenses | 8,250 | 8,261 |
Net operating income | 427 | 433 |
Other income and expenses: | ||
Non-regulated revenue | 320 | 454 |
Non-regulated expenses | (144) | (307) |
Other components of net periodic benefit cost | (99) | (153) |
Allowance for equity funds used during construction | 0 | 0 |
Income tax expense on other income and expenses | (24) | (58) |
Net other income | 53 | (64) |
Interest expense: | ||
Interest expense | 537 | 486 |
Allowance for borrowed funds used during construction | (37) | (18) |
Net interest expense | 500 | 468 |
Equity earnings of subsidiaries | 0 | 0 |
Net income | $ (20) | $ (99) |
Condensed Consolidating Finan41
Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities: | ||
Net (loss) income | $ (2,545) | $ 1,132 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Equity loss of subsidiaries | 0 | 0 |
Dividends received from affiliates | 0 | 0 |
Depreciation and amortization | 21,207 | 19,658 |
Change in value of life insurance contracts | 1,137 | (319) |
Allowance for equity funds used during construction | (911) | (779) |
Changes in operating assets and liabilities: | ||
Changes in operating assets and liabilities | 3,081 | (10,374) |
Other changes in noncurrent assets and liabilities | 6,283 | 4,979 |
Net cash provided by operating activities | 28,252 | 14,297 |
Investing activities: | ||
Utility plant expenditures | (70,650) | (51,853) |
Changes in affiliate advances | 0 | 0 |
Issuance of affiliate short-term borrowings | 0 | |
Reduction of affiliates long-term debt | 0 | 0 |
Life insurance proceeds | 0 | 450 |
Purchase of life insurance contracts | 0 | (836) |
Net cash used in investing activities | (70,650) | (52,239) |
Financing Activities: | ||
Short-term borrowings | 45,022 | 35,000 |
Repayment of short-term borrowings | (45,022) | (2,000) |
Proceeds from affiliate short-term borrowings | 0 | |
Changes in affiliate advances | 0 | 0 |
Repayment of affiliates long-term borrowings | 0 | 0 |
Repayment of long-term debt | (10,224) | (286) |
Advances and contributions in aid of construction | 4,763 | 3,975 |
Refunds of advances for construction | (1,918) | (2,236) |
Repurchase of common stock | (1,239) | (1,119) |
Dividends paid to non-affiliates | (9,003) | (8,634) |
Dividends paid to affiliates | 0 | 0 |
Net cash (used in) provided by financing activities | (17,621) | 24,700 |
Change in cash, cash equivalents, and restricted cash | (60,019) | (13,242) |
Cash, cash equivalents, and restricted cash at beginning of period | 95,352 | 25,935 |
Cash, cash equivalents, and restricted cash at end of period | 35,333 | 12,693 |
Consolidating Adjustments | ||
Operating activities: | ||
Net (loss) income | 2,740 | (985) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Equity loss of subsidiaries | (2,725) | 998 |
Dividends received from affiliates | (9,003) | (8,634) |
Depreciation and amortization | (22) | (23) |
Change in value of life insurance contracts | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 |
Changes in operating assets and liabilities: | ||
Changes in operating assets and liabilities | 0 | 0 |
Other changes in noncurrent assets and liabilities | 7 | 10 |
Net cash provided by operating activities | (9,003) | (8,634) |
Investing activities: | ||
Utility plant expenditures | 0 | 0 |
Changes in affiliate advances | (562) | (1,373) |
Issuance of affiliate short-term borrowings | 325 | |
Reduction of affiliates long-term debt | (395) | (332) |
Life insurance proceeds | 0 | |
Purchase of life insurance contracts | 0 | |
Net cash used in investing activities | (957) | (1,380) |
Financing Activities: | ||
Short-term borrowings | 0 | 0 |
Repayment of short-term borrowings | 0 | 0 |
Proceeds from affiliate short-term borrowings | (325) | |
Changes in affiliate advances | 562 | 1,373 |
Repayment of affiliates long-term borrowings | 395 | 332 |
Repayment of long-term debt | 0 | 0 |
Advances and contributions in aid of construction | 0 | 0 |
Refunds of advances for construction | 0 | 0 |
Repurchase of common stock | 0 | 0 |
Dividends paid to non-affiliates | 0 | 0 |
Dividends paid to affiliates | 9,003 | 8,634 |
Net cash (used in) provided by financing activities | 9,960 | 10,014 |
Change in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents, and restricted cash at beginning of period | 0 | |
Cash, cash equivalents, and restricted cash at end of period | 0 | |
Parent Company | Reportable Legal Entities | ||
Operating activities: | ||
Net (loss) income | (2,545) | 1,132 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Equity loss of subsidiaries | 2,725 | (998) |
Dividends received from affiliates | 9,003 | 8,634 |
Depreciation and amortization | 23 | 23 |
Change in value of life insurance contracts | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 |
Changes in operating assets and liabilities: | ||
Changes in operating assets and liabilities | (376) | (67) |
Other changes in noncurrent assets and liabilities | 806 | 483 |
Net cash provided by operating activities | 9,636 | 9,207 |
Investing activities: | ||
Utility plant expenditures | 0 | 0 |
Changes in affiliate advances | (2,520) | 593 |
Issuance of affiliate short-term borrowings | (325) | |
Reduction of affiliates long-term debt | 395 | 332 |
Life insurance proceeds | 0 | |
Purchase of life insurance contracts | 0 | |
Net cash used in investing activities | (2,125) | 600 |
Financing Activities: | ||
Short-term borrowings | 0 | 0 |
Repayment of short-term borrowings | 0 | (2,000) |
Proceeds from affiliate short-term borrowings | 0 | |
Changes in affiliate advances | 245 | 715 |
Repayment of affiliates long-term borrowings | 0 | 0 |
Repayment of long-term debt | 0 | 0 |
Advances and contributions in aid of construction | 0 | 0 |
Refunds of advances for construction | 0 | 0 |
Repurchase of common stock | (1,239) | (1,119) |
Dividends paid to non-affiliates | (9,003) | (8,634) |
Dividends paid to affiliates | 0 | 0 |
Net cash (used in) provided by financing activities | (9,997) | (11,038) |
Change in cash, cash equivalents, and restricted cash | (2,486) | (1,231) |
Cash, cash equivalents, and restricted cash at beginning of period | 4,728 | |
Cash, cash equivalents, and restricted cash at end of period | 2,242 | |
Cal Water | Reportable Legal Entities | ||
Operating activities: | ||
Net (loss) income | (2,720) | 1,084 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Equity loss of subsidiaries | 0 | 0 |
Dividends received from affiliates | 0 | 0 |
Depreciation and amortization | 20,081 | 18,542 |
Change in value of life insurance contracts | 1,137 | (319) |
Allowance for equity funds used during construction | (911) | (779) |
Changes in operating assets and liabilities: | ||
Changes in operating assets and liabilities | 1,728 | (11,003) |
Other changes in noncurrent assets and liabilities | 5,368 | 4,241 |
Net cash provided by operating activities | 24,683 | 11,766 |
Investing activities: | ||
Utility plant expenditures | (67,841) | (50,509) |
Changes in affiliate advances | 3,235 | 955 |
Issuance of affiliate short-term borrowings | 0 | |
Reduction of affiliates long-term debt | 0 | 0 |
Life insurance proceeds | 450 | |
Purchase of life insurance contracts | (836) | |
Net cash used in investing activities | (64,606) | (49,940) |
Financing Activities: | ||
Short-term borrowings | 45,022 | 35,000 |
Repayment of short-term borrowings | (45,022) | 0 |
Proceeds from affiliate short-term borrowings | 0 | |
Changes in affiliate advances | (423) | (475) |
Repayment of affiliates long-term borrowings | 0 | 0 |
Repayment of long-term debt | (10,158) | (170) |
Advances and contributions in aid of construction | 4,663 | 3,952 |
Refunds of advances for construction | (1,908) | (2,236) |
Repurchase of common stock | 0 | 0 |
Dividends paid to non-affiliates | 0 | 0 |
Dividends paid to affiliates | (8,665) | (8,234) |
Net cash (used in) provided by financing activities | (16,491) | 27,837 |
Change in cash, cash equivalents, and restricted cash | (56,414) | (10,337) |
Cash, cash equivalents, and restricted cash at beginning of period | 81,453 | |
Cash, cash equivalents, and restricted cash at end of period | 25,039 | |
All Other Subsidiaries | Reportable Legal Entities | ||
Operating activities: | ||
Net (loss) income | (20) | (99) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Equity loss of subsidiaries | 0 | 0 |
Dividends received from affiliates | 0 | 0 |
Depreciation and amortization | 1,125 | 1,116 |
Change in value of life insurance contracts | 0 | 0 |
Allowance for equity funds used during construction | 0 | 0 |
Changes in operating assets and liabilities: | ||
Changes in operating assets and liabilities | 1,729 | 696 |
Other changes in noncurrent assets and liabilities | 102 | 245 |
Net cash provided by operating activities | 2,936 | 1,958 |
Investing activities: | ||
Utility plant expenditures | (2,809) | (1,344) |
Changes in affiliate advances | (153) | (175) |
Issuance of affiliate short-term borrowings | 0 | |
Reduction of affiliates long-term debt | 0 | 0 |
Life insurance proceeds | 0 | |
Purchase of life insurance contracts | 0 | |
Net cash used in investing activities | (2,962) | (1,519) |
Financing Activities: | ||
Short-term borrowings | 0 | 0 |
Repayment of short-term borrowings | 0 | 0 |
Proceeds from affiliate short-term borrowings | 325 | |
Changes in affiliate advances | (384) | (1,613) |
Repayment of affiliates long-term borrowings | (395) | (332) |
Repayment of long-term debt | (66) | (116) |
Advances and contributions in aid of construction | 100 | 23 |
Refunds of advances for construction | (10) | 0 |
Repurchase of common stock | 0 | 0 |
Dividends paid to non-affiliates | 0 | 0 |
Dividends paid to affiliates | (338) | (400) |
Net cash (used in) provided by financing activities | (1,093) | (2,113) |
Change in cash, cash equivalents, and restricted cash | (1,119) | $ (1,674) |
Cash, cash equivalents, and restricted cash at beginning of period | 9,171 | |
Cash, cash equivalents, and restricted cash at end of period | $ 8,052 |