Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 10, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-13883 | ||
Entity Registrant Name | CALIFORNIA WATER SERVICE GROUP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 77-0448994 | ||
Entity Address, Address Line One | 1720 North First Street | ||
Entity Address, City or Town | San Jose, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95112 | ||
City Area Code | 408 | ||
Local Phone Number | 367-8200 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | CWT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,437 | ||
Entity Common Stock, Shares Outstanding | 48,536,524 | ||
Documents Incorporated by Reference | Certain information required to be disclosed in Part III of this report is incorporated by reference from the registrant’s definitive Proxy Statement for its Annual Meeting of Stockholders to be held on or about May 27, 2020. The proxy statement is expected to be filed no later than 120 days after the end of the fiscal year covered by this report. | ||
Entity Central Index Key | 0001035201 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Utility plant: | ||
Land | $ 45,047 | $ 44,019 |
Depreciable plant and equipment | 3,235,415 | 2,950,424 |
Construction work in progress | 245,169 | 210,260 |
Intangible assets | 24,854 | 24,743 |
Total utility plant | 3,550,485 | 3,229,446 |
Less accumulated depreciation and amortization | (1,144,115) | (996,723) |
Net utility plant | 2,406,370 | 2,232,723 |
Current assets: | ||
Cash and cash equivalents | 42,653 | 47,176 |
Receivables: net of allowance for doubtful accounts of $771 and $757 in 2019 and 2018, respectively | ||
Customers | 32,058 | 30,037 |
Regulatory balancing accounts | 38,225 | 42,394 |
Other | 14,187 | 17,101 |
Unbilled revenue | 34,879 | 33,427 |
Materials and supplies at weighted average cost | 7,745 | 6,586 |
Taxes, prepaid expenses, and other assets | 14,965 | 11,981 |
Total current assets | 184,712 | 188,702 |
Other assets: | ||
Regulatory assets | 433,322 | 353,569 |
Goodwill | 2,615 | 2,615 |
Other | 84,289 | 60,095 |
Total other assets | 520,226 | 416,279 |
TOTAL ASSETS | 3,111,308 | 2,837,704 |
Capitalization: | ||
Common stock, $0.01 par value; 68,000 shares authorized, 48,532 and 48,065 outstanding in 2019 and 2018, respectively | 485 | 481 |
Additional paid-in capital | 362,275 | 337,623 |
Retained earnings | 417,146 | 392,053 |
Total common stockholders' equity | 779,906 | 730,157 |
Long-term debt, net | 786,754 | 710,027 |
Total capitalization | 1,566,660 | 1,440,184 |
Current liabilities: | ||
Current maturities of long-term debt, net | 21,868 | 104,911 |
Short-term borrowings | 175,100 | 65,100 |
Accounts payable | 108,463 | 95,580 |
Regulatory balancing accounts | 4,462 | 12,213 |
Accrued other taxes | 4,445 | 4,182 |
Accrued interest | 5,810 | 5,674 |
Other accrued liabilities | 38,573 | 33,506 |
Total current liabilities | 358,721 | 321,166 |
Unamortized investment tax credits | 1,575 | 1,649 |
Deferred income taxes | 222,590 | 213,033 |
Regulatory liabilities | 211,413 | 211,275 |
Pension and postretirement benefits other than pensions | 258,907 | 193,538 |
Advances for construction | 191,062 | 186,342 |
Contributions in aid of construction | 241,537 | 225,270 |
Other long-term liabilities | 58,843 | 45,247 |
Commitments and contingencies | ||
TOTAL CAPITALIZATION AND LIABILITIES | $ 3,111,308 | $ 2,837,704 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Receivables: allowance for doubtful accounts | $ 771 | $ 757 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 68,000 | 68,000 |
Common stock, shares outstanding (in shares) | 48,532 | 48,065 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Operating revenue | $ 714,557 | $ 698,196 | $ 676,113 |
Operations: | |||
Purchased water | 212,461 | 207,103 | 199,081 |
Purchased power | 31,362 | 31,080 | 28,862 |
Pump taxes | 11,518 | 14,664 | 13,924 |
Administrative and general | 108,617 | 100,781 | 93,326 |
Other operations | 90,061 | 79,868 | 74,448 |
Maintenance | 26,834 | 24,494 | 22,530 |
Depreciation and amortization | 89,220 | 83,781 | 76,783 |
Income taxes | 16,280 | 18,589 | 35,279 |
Property and other taxes | 28,792 | 27,296 | 24,797 |
Total operating expenses | 615,145 | 587,656 | 569,030 |
Net operating income | 99,412 | 110,540 | 107,083 |
Other income and expenses: | |||
Non-regulated revenue | 19,205 | 18,272 | 15,898 |
Non-regulated expenses | (13,869) | (22,787) | (9,390) |
Other components of net periodic benefit cost | (5,733) | (9,308) | (9,588) |
Allowance for equity funds used during construction | 6,685 | 3,954 | 3,750 |
Gain on sale of non-utility property | 28 | 50 | 663 |
Income tax (expense) benefit on other income and expenses | (1,391) | 2,717 | (1,548) |
Net other income (loss) | 4,925 | (7,102) | (215) |
Interest expense: | |||
Interest expense | 44,891 | 39,917 | 36,288 |
Allowance for borrowed funds used during construction | (3,670) | (2,063) | (2,360) |
Net interest expense | 41,221 | 37,854 | 33,928 |
Net income | $ 63,116 | $ 65,584 | $ 72,940 |
Earnings per share: | |||
Basic (in dollars per share) | $ 1.31 | $ 1.36 | $ 1.52 |
Diluted (in dollars per share) | $ 1.31 | $ 1.36 | $ 1.52 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 48,168 | 48,060 | 48,009 |
Diluted (in shares) | 48,168 | 48,060 | 48,009 |
Consolidated Statements of Comm
Consolidated Statements of Common Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings |
Balance at the beginning of the period (in shares) at Dec. 31, 2016 | 47,965 | |||
Balance at the beginning of the period at Dec. 31, 2016 | $ 659,471 | $ 480 | $ 334,856 | $ 324,135 |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 72,940 | 72,940 | ||
Issuance of common stock (in shares) | 88 | |||
Issuance of common stock | 2,878 | $ 1 | 2,877 | |
Repurchase of common stock (in shares) | (41) | |||
Repurchase of common stock | (1,505) | $ (1) | (1,504) | |
Dividends paid on common stock | (34,563) | (34,563) | ||
Balance at the beginning of the period (in shares) at Dec. 31, 2017 | 48,012 | |||
Balance at the end of the period at Dec. 31, 2017 | 699,221 | $ 480 | 336,229 | 362,512 |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 65,584 | 65,584 | ||
Issuance of common stock (in shares) | 95 | |||
Issuance of common stock | 3,040 | $ 1 | 3,039 | |
Repurchase of common stock (in shares) | (42) | |||
Repurchase of common stock | (1,645) | $ 0 | (1,645) | |
Dividends paid on common stock | (36,043) | (36,043) | ||
Balance at the beginning of the period (in shares) at Dec. 31, 2018 | 48,065 | |||
Balance at the end of the period at Dec. 31, 2018 | 730,157 | $ 481 | 337,623 | 392,053 |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 63,116 | 63,116 | ||
Issuance of common stock (in shares) | 515 | |||
Issuance of common stock | 27,153 | $ 5 | 27,148 | |
Repurchase of common stock (in shares) | (48) | |||
Repurchase of common stock | (2,497) | $ (1) | (2,496) | |
Dividends paid on common stock | (38,023) | (38,023) | ||
Balance at the beginning of the period (in shares) at Dec. 31, 2019 | 48,532 | |||
Balance at the end of the period at Dec. 31, 2019 | $ 779,906 | $ 485 | $ 362,275 | $ 417,146 |
Consolidated Statements of Co_2
Consolidated Statements of Common Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends paid on common stock (in dollars per share) | $ 0.1975 | $ 0.1975 | $ 0.1975 | $ 0.1975 | $ 0.1875 | $ 0.1875 | $ 0.1875 | $ 0.1875 | $ 0.790 | $ 0.750 | $ 0.720 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net income | $ 63,116 | $ 65,584 | $ 72,940 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 91,288 | 85,707 | 78,592 |
Amortization of debt premium and expenses | 744 | 1,099 | 920 |
Changes in normalized deferred income taxes | 15,346 | 20,909 | 21,087 |
Change in value of life insurance contracts | (5,104) | 2,334 | (3,058) |
Allowance for equity funds used during construction | (6,685) | (3,954) | (3,750) |
Stock-based compensation | 6,731 | 3,141 | 3,118 |
Gain on sale of non-utility properties | (28) | (50) | (663) |
Write-off of capital costs | 698 | 410 | 1,293 |
Changes in operating assets and liabilities: | |||
Receivables | (4,580) | 20,422 | (31,871) |
Unbilled revenue | (1,452) | (3,671) | (4,528) |
Taxes, prepaid expenses, and other assets | (3,545) | (587) | (3,718) |
Accounts payable | 10,719 | 4,701 | 1,564 |
Other current liabilities | 1,282 | (4,382) | 2,164 |
Other changes in noncurrent assets and liabilities | 264 | (12,644) | 13,752 |
Net cash provided by operating activities | 168,794 | 179,019 | 147,842 |
Investing activities: | |||
Utility plant expenditures | (273,770) | (271,707) | (259,194) |
Proceeds from sale of non-utility assets | 28 | 59 | 666 |
TCP settlement proceeds | 0 | 0 | 56,004 |
Life insurance benefits | 0 | 3,491 | 1,558 |
Purchase of life insurance | (2,216) | (4,925) | (5,605) |
Net cash used in investing activities | (275,958) | (273,082) | (206,571) |
Financing activities: | |||
Short-term borrowings | 260,000 | 151,000 | 265,000 |
Repayment of short-term borrowings | (150,000) | (361,000) | (87,000) |
Issuance of long-term debt, net of debt issuance costs of $1,796 for 2019, $617 for 2018, $0 for 2017 | 398,204 | 299,383 | 0 |
Advances and contributions in aid of construction | 27,774 | 18,612 | 21,369 |
Refunds of advances for construction | (7,566) | (7,297) | (8,378) |
Retirement of long-term debt | (405,568) | (16,532) | (26,829) |
Repurchase of common stock | (2,497) | (1,645) | (1,505) |
Issuance of common stock | 20,423 | 0 | 0 |
Dividends paid | (38,023) | (36,043) | (34,563) |
Net cash provided by financing activities | 102,747 | 46,478 | 128,094 |
Change in cash, cash equivalents, and restricted cash | (4,417) | (47,585) | 69,365 |
Cash, cash equivalents, and restricted cash at beginning of year | 47,715 | 95,300 | 25,935 |
Cash, cash equivalents, and restricted cash at end of year | 43,298 | 47,715 | 95,300 |
Cash paid (received) during the year for: | |||
Interest (net of amounts capitalized) | 40,980 | 35,941 | 32,223 |
Income tax refunds | 0 | 0 | (1,697) |
Supplemental disclosure of investing and financing non-cash activities: | |||
Accrued payables for investments in utility plant | 40,794 | 38,807 | 41,017 |
Utility plant contributed by developers | 16,288 | 20,609 | 19,898 |
Litigation proceeds for TCP and MTBE contamination reclassified from liability to depreciable plant and equipment | $ 13,968 | $ 32,315 | $ 2,420 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Long-term Debt | |||
Issuance of debt expenses | $ 1,796 | $ 617 | $ 0 |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND OPERATIONS | ORGANIZATION AND OPERATIONS California Water Service Group (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 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 consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include the Company's accounts and those of its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated from the consolidated financial statements. In the opinion of management, the consolidated financial statements reflect all adjustments that are necessary to provide a fair presentation of the results for the periods covered. The preparation of the Company's consolidated 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 consolidated 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, utility plant useful lives, 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. Subsequent to the issuance of the Company's Consolidated Financial Statements for the year ended December 31, 2017, the Company identified an immaterial computational error related to the amount of authorized revenue recorded pursuant to the Company's pension and health cost balancing accounts. The Company corrected the error in the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. For additional information regarding the error and its correction, please refer to Note 17 of the Notes to Consolidated Financial Statements included in that report. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
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 for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Revenue from contracts with customers $ 664,358 $ 674,736 $ 622,474 Regulatory balancing account revenue 50,199 23,460 53,639 Total operating revenue $ 714,557 $ 698,196 $ 676,113 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 the Company's collections from customers, which generally require payment within 30 days of billing. The Company applies judgment, based principally on historical payment experience, in estimating its 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 or contract liability, 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 for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Residential $ 446,323 $ 450,062 $ 415,893 Business 129,223 130,041 118,279 Industrial 31,857 34,236 28,905 Public authorities 33,862 34,511 31,671 Other* 23,093 25,886 27,726 Total revenue from contracts with customers $ 664,358 $ 674,736 $ 622,474 _______________________________________________________________________________ * Other includes accrued unbilled revenue 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. These mechanisms include the following: 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), Conservation Balancing Account, Pension Cost Balancing Account, and Health Cost Balancing Account, generally provide for recovery of the adopted levels of expenses for purchased water, purchased power, pump taxes, water conservation program costs, pension, and health care. 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 The following tables disaggregate the Company’s non-regulated revenue by source for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Operating and maintenance revenue $ 12,655 $ 10,392 $ 8,621 Other non-regulated revenue 4,271 5,413 5,262 Non-regulated revenue from contracts with customers $ 16,926 $ 15,805 $ 13,883 Lease revenue 2,279 2,467 2,015 Total non-regulated revenue $ 19,205 $ 18,272 $ 15,898 Operating and maintenance services are provided for non-regulated 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 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. Lease revenue is not considered revenue from contracts with customers and is recognized following operating lease standards. The Company is the lessor in operating lease agreements with telecommunications companies under which cellular phone antennas are placed on the Company's property. The Company provides the lessee the right to ingress and egress across lessor property to access the antennas. The minimum rents are recognized on a straight-line basis over the terms of the leases, which may span multiple years. The excess rents are recognized over amounts contractually due pursuant to the underlying leases and is included in a deferred receivable account in the accompanying balance sheet. The leases generally have terms of 5 to 10 years , with lessee options to extend the lease for up to 15 years . The exercise of lease renewal options is at the lessee’s sole discretion. Most of the Company’s lease agreements contain mutual termination options that require prior written notice by either lessee or lessor. A subset of the Company’s leases contains variable lease payments that depend on changes in the consumer price index (CPI). The Company determines if an arrangement is a lease at inception. Generally, a lease agreement exists if the Company determines that the arrangement gives the lessee control over the use of an identified asset and obtains substantially all of the benefits from the identified asset. Maturities of lease payments to be received are as follows: Year Ending December 31, Operating Leases 2020 $ 2,772 2021 2,012 2022 1,211 2023 725 2024 411 Thereafter 585 Allowance for Doubtful Accounts The Company provides an allowance for doubtful accounts receivable. The allowance is based upon specific identified accounts plus an estimate of uncollectible accounts based upon historical percentages. The balance of customer receivables is net of the allowance for doubtful accounts of $0.8 million as of December 31, 2019, 2018 and 2017. The activities in the allowance for doubtful accounts were as follows: 2019 2018 2017 Beginning Balance $ 757 $ 773 $ 830 Provision for uncollectible accounts 1,664 1,703 1,570 Net write off of uncollectible accounts (1,650 ) (1,719 ) (1,627 ) Ending Balance $ 771 $ 757 $ 773 Other Receivables As of December 31, 2019 and 2018, other receivables were: 2019 2018 Accounts receivable from developers $ 6,299 $ 9,633 Other 7,888 7,468 Total other receivables $ 14,187 $ 17,101 Utility Plant Utility plant is carried at original cost when first constructed or purchased, or at fair value when acquired through acquisition. When depreciable plant is retired, the cost is eliminated from utility plant accounts and such costs are charged against accumulated depreciation. Maintenance of utility plant is charged to operating expenses as incurred. Maintenance projects are not accrued for in advance. Intangible assets acquired as part of water systems purchased are recorded at fair value. All other intangibles have been recorded at cost and are amortized over their useful life. The following table represents depreciable plant and equipment as of December 31: 2019 2018 Equipment $ 726,475 $ 643,581 Office buildings and other structures 281,462 267,948 Transmission and distribution plant 2,227,478 2,038,895 Total $ 3,235,415 $ 2,950,424 Depreciation of utility plant is computed on a straight-line basis over the assets' estimated useful lives including cost of removal of certain assets as follows: Useful Lives Equipment 5 to 50 years Transmission and distribution plant 40 to 65 years Office Buildings and other structures 50 years The provision for depreciation expressed as a percentage of the aggregate depreciable asset balances was 2.96% in 2019, 3.02% in 2018, and 3.00% in 2017. AFUDC The AFUDC represents the capitalized cost of funds used to finance the construction of the utility plant. In general, AFUDC is applied to Cal Water construction projects requiring more than one month to complete. No AFUDC is applied to projects funded by customer advances for construction, contributions in aid of construction, or applicable state-revolving fund loans. AFUDC includes the net cost of borrowed funds and a rate of return on other funds when used, and is recovered through water rates as the utility plant is depreciated. The amount of AFUDC related to equity funds and to borrowed funds for 2019, 2018, and 2017 are shown in the table below: 2019 2018 2017 Allowance for equity funds used during construction $ 6,685 $ 3,954 $ 3,750 Allowance for borrowed funds used during construction 3,670 2,063 2,360 Total $ 10,355 $ 6,017 $ 6,110 Asset Retirement Obligation The Company has a legal obligation to retire wells in accordance with State Water Resources Control Board regulations. In addition, upon decommission of a wastewater plant or lift station certain wastewater infrastructure would need to be retired in accordance with State Water Resources Control Board regulations. An asset retirement cost and corresponding retirement obligation is recorded when a well or waste water infrastructure is placed into service. As of December 31, 2019 and 2018, the retirement obligation is estimated to be $25.6 million and $24.3 million , respectively. The change only impacted the consolidated balance sheets as the Company recognizes a regulatory asset or liability for the timing differences between the recognition of expenses and costs recovered through the ratemaking process. Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include highly liquid investments with remaining maturities of three months or less at the time of acquisition. In 2019 and 2018, restricted cash includes $0.6 million and $0.5 million , respectively, of proceeds collected through a surcharge on certain customers' bills plus interest earned on the proceeds and is used to service California Safe Drinking Water Bond obligations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the Consolidated Balance Sheets that total to the amounts shown on the Consolidated Statements of Cash Flows: December 31, 2019 December 31, 2018 Cash and cash equivalents 42,653 47,176 Restricted cash (included in "taxes, prepaid expenses, and other assets") 645 539 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 43,298 $ 47,715 Regulatory Assets and Liabilities Because the Company operates almost exclusively in a regulated business, the Company is subject to the accounting standards for regulated utilities. The Commissions in the states in which the Company operates establish rates that are designed to permit the recovery of the cost of service and a return on investment. The Company capitalizes and records regulatory assets for costs that would otherwise be charged to expense if it is probable that the incurred costs will be recovered in future rates. Regulatory assets are amortized over the future periods that the costs are expected to be recovered. If costs expected to be incurred in the future are currently being recovered through rates, the Company records those expected future costs as regulatory liabilities. In general, the Company does not earn a return on regulatory assets if the related costs do not accrue interest. Accordingly, the Company earns a return only on its regulatory assets for net WRAM and MCBA, pension cost balancing account, health cost balancing account, and interim rates receivable. In addition, the Company records regulatory liabilities when the Commissions require a refund to be made to the Company's customers over future periods. Determining probability requires significant judgment by management and includes, but is not limited to, consideration of testimony presented in regulatory hearings, proposed regulatory decisions, final regulatory orders, and the strength or status of applications for rehearing or state court appeals. If the Company determines that a portion of the Company's assets used in utility operations is not recoverable in customer rates, the Company would be required to recognize the loss of the assets disallowed. Cal Water submitted its 2018 GRC with the CPUC in July of 2019. As of February 27, 2020, the GRC approval is still pending. Regulatory assets and liabilities were comprised of the following as of December 31: Recovery Period 2019 2018 Regulatory Assets Pension and retiree group health Indefinitely $ 208,321 $ 156,947 Property-related temporary differences (tax benefits flowed through to customers) Indefinitely 104,931 99,376 Other accrued benefits Indefinitely 20,030 20,588 Net WRAM and MCBA long-term accounts receivable 1-2 years 25,465 17,134 Asset retirement obligations, net Indefinitely 19,567 18,197 Interim rates long-term accounts receivable 1 year 4,642 4,642 Tank coating 10 years 13,535 11,196 Recoverable property losses 10 years 5,000 1,275 Pension cost balancing account 1 year 21,465 16,494 Other components of net periodic benefit cost Indefinitely 5,145 3,221 Other regulatory assets Various 5,221 4,499 Total Regulatory Assets $ 433,322 $ 353,569 Regulatory Liabilities Future tax benefits due to customers $ 194,501 $ 180,205 Health cost balancing account 4,271 3,516 Conservation program 2,742 6,880 Net WRAM and MCBA long-term payable 211 222 Tax accounting memorandum account 806 5,039 Cost of capital memorandum account 151 2,834 1,2,3 trichloropropane settlement proceeds 8,426 12,142 Other regulatory liabilities 305 437 Total Regulatory Liabilities $ 211,413 $ 211,275 The Company's pension and postretirement health care benefits regulatory asset represents the unfunded obligation of the Company’s pension and postretirement benefit plans which the Company expects to recover from customers in the future for these plans. These plans are discussed in further detail in Note 11. The pension cost balancing account regulatory asset and the health cost balancing account regulatory liability represent incurred pension and healthcare costs that exceeded/was below the cost recovery in rates and is recoverable/refundable from/to customers. 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. The property-related temporary differences are primarily due to: (i) the difference between book and federal income tax depreciation on utility plant that was placed in service before the regulatory Commissions adopted normalization for rate making purposes; and (ii) certain (state) deferred taxes for which flow through accounting continues to be applied to originating deferred taxes. The regulatory asset will be recovered in rates in future periods as the tax effects of the temporary differences previously flowed-through to customers reverse. Other accrued benefits are accrued benefits for vacation, self-insured workers' compensation, and directors' retirement benefits. The net WRAM and MCBA long-term accounts receivable is the under-collected portion of recorded revenues that are not expected to be collected from customers within 12 months . The asset retirement obligation regulatory asset represents the difference between costs associated with asset retirement obligations and amounts collected in rates. Tank coating represents the maintenance costs for tank coating projects that are recoverable from customers. The future tax benefits due to customers primarily resulted from federal tax law changes enacted by the federal Tax Cuts and Jobs Act (TCJA) on December 22, 2017. The TCJA reduced the federal corporate income tax rate from 35 percent to 21 percent beginning on January 1, 2018, and GAAP requires the Company to re-measure all existing deferred income tax assets and liabilities to reflect the reduction in the federal tax rate on the enactment date. The Company is working with state regulators to finalize the ratepayer refund process to ensure compliance with federal normalization rules. The conservation program regulatory liability is for incurred conservation costs that were below the cost recovery in rates and is refundable to customers. The tax accounting and cost of capital memorandum account regulatory liabilities are related to the estimated customer refunds due to changes in the federal income tax rate and to the March 22, 2018 cost of capital decision for Cal Water (see Item 1. Business - Rates and Regulation). 1,2,3 trichloropropane (TCP) settlement proceeds are discussed in Note 14. Short-term regulatory assets and liabilities are excluded from the above table. The short-term regulatory assets for 2019 and 2018 were $38.2 million and $42.4 million , respectively. The short-term regulatory assets, as of December 31, 2019 and 2018, primarily consist of net WRAM and MCBA receivables. The short-term portion of regulatory liabilities for 2019 and 2018 were $4.5 million and $12.2 million , respectively. The short-term regulatory liabilities as of December 31, 2019, primarily consist of TCP settlement proceeds, tax accounting memorandum account refunds, and cost of capital memorandum account refunds. As of December 31, 2018, the short-term regulatory liabilities primarily consist of TCP settlement proceeds and net WRAM and MCBA liability balances. Impairment of Long-Lived Assets, Intangibles and Goodwill The Company's long-lived assets include transmission and distribution plant, equipment, land, buildings, and intangible assets. Long-lived assets, other than land, are depreciated or amortized over their estimated useful lives, and are reviewed for impairment whenever changes in circumstances indicate the carrying value of the assets may not be recoverable. Such circumstances would include items such as a significant decrease in the market value of a long-lived asset, a significant adverse change in the manner in which the asset is being used or planned to be used or in its physical condition, or a history of operating or cash flow losses associated with the uses of the asset. In addition, changes in the expected useful life of these long-lived assets may also be an impairment indicator. When such events or changes occur, the Company estimates the fair value of the asset from future cash flows expected to result from the use and, if applicable, the eventual disposition of the assets, and compare that to the carrying value of the asset. If the carrying value is greater than the fair value, then an impairment loss is recognized equal to the amount by which the asset's carrying value exceeds its fair value. The key variables that must be estimated include assumptions regarding sales volume, rates, operating costs, labor and other benefit costs, capital additions, assumed discount rates and other economic factors. These variables require significant management judgment and include inherent uncertainties since they are forecasting future events. A variation in the assumptions used could lead to a different conclusion regarding the realizability of an asset and, thus could have a significant effect on the consolidated financial statements. Goodwill is measured as the excess of the cost of an acquisition over the sum of the amounts assigned to identifiable assets acquired less liabilities assumed. Goodwill is not amortized but instead is reviewed annually at November 30 th for impairment or more frequently if impairment indicators arise. The impairment test is performed at the reporting unit level using a two- step, fair-value based approach. The first step determines the fair value of the reporting unit and compares it to the reporting unit's carrying value. If the fair value of the reporting unit is less than its carrying amount, a second step is performed to measure the amount of impairment loss, if any. The second step allocates the fair value of the reporting unit to the Company's tangible and intangible assets and liabilities. This derives an implied fair value for the reporting unit's goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized equal to the excess. Long-Term Debt Premium, Discount and Expense The premiums, discounts, and issuance expenses on long-term debt are amortized over the original lives of the related debt on a straight-line basis which approximates the effective interest method. Premiums paid on the early redemption of certain debt and the unamortized original issuance discount and expense are amortized over the life of new debt issued in conjunction with the early redemption. Amortization expense included in interest expense for 2019, 2018, and 2017 was $0.7 million , $1.1 million , and $0.9 million , respectively. Advances for Construction Advances for construction consist of payments received from developers for installation of water production and distribution facilities to serve new developments. Advances are excluded from rate base for rate setting purposes. Annual refunds are made to developers without interest. Advances of $191.1 million , and $186.3 million at December 31, 2019 and 2018, respectively, will be refunded primarily over a 40 -year period in equal annual amounts. Estimated refunds of advances are shown in the table below. Year Ending December 31, Refunds of Advances 2020 $ 7,628 2021 7,627 2022 7,627 2023 7,627 2024 7,627 Thereafter 152,926 Total refunds $ 191,062 Contributions in Aid of Construction Contributions in aid of construction represent payments received from developers, primarily for fire protection purposes, which are not subject to refunds. Facilities funded by contributions are included in utility plant, but excluded from rate base. Depreciation related to assets acquired from contributions is charged to the Contributions in Aid of Construction account. Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Measurement of the deferred tax assets and liabilities is at enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. The Company evaluates the need for a valuation allowance on deferred tax assets based on historical taxable income and projected taxable income for future tax years. Historically the Commissions reduced revenue requirements for the tax effects of certain originating temporary differences and allowed recovery of these tax costs as the related temporary differences reverse. The Commissions have granted the Company rate increases to reflect the normalization of the tax benefits of the federal accelerated methods and available Investment Tax Credits (ITC) for all assets placed in service after 1980. ITCs are deferred and amortized over the lives of the related properties for book purposes. The CPUC sets rates utilizing the flow through method of accounting for state income taxes. Subsequent to 1986, Advances for Construction and Contributions in Aid of Construction were taxable for federal income tax purposes. Subsequent to 1991, Advances for Construction and Contributions in Aid of Construction were subject to California income tax. Due to changes in the federal tax law in 1996 and the California tax law in 1997 only deposits for new services were taxable. In late 2000, federal regulations were further modified to exclude contributions of fire services from taxable income. With the enactment of the TCJA, all Advances for Construction and Contributions in Aid of Construction received from developers after December 22, 2017 became taxable for federal income tax purposes. The accounting standards for accounting for uncertainty in income taxes allows the inclusion of interest and penalties related to uncertain tax positions as a component of income taxes. (see Note 10 - Income Taxes). Workers' Compensation For workers' compensation, the Company estimates the liability associated with claims submitted and claims not yet submitted based on historical data. Expenses for workers compensation insurance are included in rates on a pay-as- you-go basis. Therefore, a corresponding regulatory asset has been recorded. Earnings per Share The computations of basic and diluted earnings per share are noted below. Basic earnings per share are computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts were exercised or converted into common stock. Restricted Stock Awards (RSAs) are included in the common shares outstanding because the shares have all the same voting and dividend rights as issued and unrestricted common stock. Restricted Stock Unit Awards (RSUs) are not included in diluted shares for financial reporting until authorized by the Organization & Compensation Committee of the Board of Directors. 2019 2018 2017 (In thousands, Net income available to common stockholders $ 63,116 $ 65,584 $ 72,940 Weighted average common shares, basic 48,168 48,060 48,009 Weighted average common shares, dilutive 48,168 48,060 48,009 Earnings per share—basic $ 1.31 $ 1.36 $ 1.52 Earnings per share—diluted $ 1.31 $ 1.36 $ 1.52 Stock-based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award. The Company recognizes compensation expense on a straight-line basis over the requisite service period, which is the vesting period. Comprehensive Income or Loss Comprehensive income for all periods presented was the same as net income. Accumulated Other Comprehensive Income The Company did not have any accumulated other comprehensive income or loss transactions as of December 31, 2019 and 2018. Adoption of New Accounting Standards in 2019 In February of 2016, the Financial Accounting Standards Board (FASB) issued guidance on leases, with amendments in 2018. 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. The Company adopted the standard using the modified retrospective method for its existing leases and did not restate its comparative periods in the period of adoption. The Company completed its review of its lease portfolio including significant leases and the Company designed and implemented new controls as part of the adoption of the new standard. The implementation increased lease assets and lease liabilities on the Consolidated Balance Sheet by $13.8 million as of January 1, 2019. The Company elected certain practical expedients and carried forward historical conclusions related to (1) contracts that contain leases, (2) existing lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. The Company also applied the practical expedient that allowed the Company to elect, as an accounting policy, by asset class, to include both lease and non-lease components as a single component and account for it as a lease. The Company applied the short-term lease exception which allowed the Company to not have to apply the recognition requirements of the new leasing guidance for short-term leases and to recognize lease payments in net income on a straight-line basis over the lease term. Otherwise, the new standard did not have a material impact on the remaining consolidated financial statements. New Accounting Standards Issued But Not Yet Adopted in 2019 In June of 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which changed the impairment model for certain financial assets that have a contractual right to receive cash, including trade and loan receivables. The new model required recognition based upon an estimation of expected credit losses rather than recognition of losses when it is probable that they have been incurred. ASU 2016-13 was effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company adopted the standard utilizing the modified retrospective method for its trade receivables and unbilled revenue on January 1, 2020. Based on the composition of the Company’s trade receivables and unbilled revenue, and expected future losses, the adoption of ASU 2016-13 is not expected to have a material impact on its consolidated financial statements. In January of 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminated step 2 of goodwill impairment test, which required a hypothetical purchase price allocation to measure goodwill impairment. Under the new guidance, a goodwill impairment loss will be measured at the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 was effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. The Company adopted the standard on January 1, 2020 and the adoption of the standard is not expected to have a material impact on its consolidated financial statements. In August of 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure for Fair Value Measurement, which modified the disclosure requirements on fair value measurements. The modifications in this update eliminated, amended, and added disclosure requirements for fair value measurements. ASU 2018-13 was effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. As required by the standard, the Company adopted the standard prospectively and retrospectively |
OTHER INCOME AND EXPENSES
OTHER INCOME AND EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME AND EXPENSES | OTHER INCOME AND EXPENSES The Company conducts various non-regulated activities as reflected in the table below: 2019 2018 2017 Revenue Expense Revenue Expense Revenue Expense Operating and maintenance $ 12,655 $ 13,791 $ 10,392 $ 11,895 $ 8,621 $ 8,847 Leases 2,279 35 2,467 135 2,015 182 Design and construction 1,745 1,612 1,273 1,202 1,918 1,635 Meter reading and billing 412 163 391 157 256 (6 ) Interest income 92 — 133 — 68 — Change in value of life insurance contracts (gain) loss — (5,104 ) — 2,340 — (3,057 ) Other non-regulated income and expenses 2,022 3,372 3,616 7,058 3,020 1,789 Total $ 19,205 $ 13,869 $ 18,272 $ 22,787 $ 15,898 $ 9,390 Operating and maintenance services and meter reading and billing services are provided for water and wastewater systems owned by private companies and municipalities. The agreements typically call for a fee-per-service or a flat-rate amount per month. Leases have been entered into with telecommunications companies for cellular phone antennas placed on the Company's property. Design and construction services are for the design and installation of water mains and other water infrastructure for others outside the Company's regulated service areas. Third-party insurance program gains and losses are included in other non-regulated income and expenses. The 2018 other non-regulated income and expenses included $5.4 million |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS As of December 31, 2019 and 2018, intangible assets that will continue to be amortized and those not amortized were: Weighted Average Amortization Period (years) 2019 2018 Gross Accumulated Net Gross Accumulated Net Amortized intangible assets: Water pumping rights usage $ 1,084 $ 116 $ 968 $ 1,084 $ 112 $ 972 Water planning studies 13 18,476 12,950 5,526 18,364 11,899 6,465 Leasehold improvements and other 17 1,519 889 630 1,519 882 637 Total $ 21,079 $ 13,955 $ 7,124 $ 20,967 $ 12,893 $ 8,074 Unamortized intangible assets: Perpetual water rights and other $ 3,776 $ — $ 3,776 $ 3,776 $ — $ 3,776 Water pumping rights usage is the amount of water pumped from aquifers to be treated and distributed to customers. For the year ended December 31, 2019, 2018, and 2017, amortization of intangible assets was $1.5 million , $1.7 million , $1.6 million , respectively. Estimated future amortization expense related to intangible assets are shown in the table below: Year Ending December 31, Estimated Future Amortization Expense Related to Intangible Assets 2020 $ 958 2021 870 2022 747 2023 569 2024 446 Thereafter 3,534 Total $ 7,124 |
PREFERRED STOCK
PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
PREFERRED STOCK | PREFERRED STOCK On February 27, 2019, the Company filed with the Delaware Secretary of State a Certificate of Elimination of Series D Participating Preferred Stock, which returned the 221,000 shares that had previously been designated as Series D Preferred Stock but had never been issued to the status of preferred shares of the Company, without designation as to series. The foregoing summary of the Certificate of Elimination is qualified in its entirety by reference to the full text of the Certificate of Elimination, a copy of which is attached as Exhibit 4.2. |
COMMON STOCKHOLDERS' EQUITY
COMMON STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCKHOLDERS' EQUITY | COMMON STOCKHOLDERS' EQUITY As of December 31, 2019 and 2018, 48,532,199 shares and 48,064,707 shares, respectively, of common stock were issued and outstanding. Effective January 1, 2019, the Company implemented an Employee Stock Purchase Plan (ESPP). Under the ESPP, qualified employees are permitted to purchase the Company’s common stock at 90% of the market value of the common stock on the specified stock purchase date. The ESPP is deemed compensatory and compensation costs will be accounted for under ASC 718, Stock Compensation . Employees’ payroll deductions for common stock purchases may not exceed 10% of their salaries. Employees may purchase up to 2,000 shares per period provided that the value of the shares purchased in any calendar year may not exceed $25,000 , as calculated pursuant to the ESPP. The Company's recorded expense was $0.2 million for 2019 and the Company has issued 35,281 shares of common stock related to the ESPP. On October 31, 2019, the Company entered into an equity distribution agreement to sell shares of its common stock having an aggregate gross sales price of up to $300.0 million from time to time depending on market conditions through an at-the-market equity program over the next three years . The Company intends to use the net proceeds from these sales, after deducting commissions on such sales and offering expenses, for general corporate purposes, which may include working capital, construction and acquisition expenditures, investments and repurchases, and redemptions of securities. From October 31, 2019 to December 31, 2019, the Company sold 381,105 shares of common stock through the at-the-market equity program and raised proceeds of $19.3 million net of $0.2 million in commissions paid under the equity distribution agreement. The Company also incurred $0.5 million of equity issuance costs. Dividend Reinvestment and Stock Repurchase Plan The Company has a Dividend Reinvestment and Stock Purchase Plan (DRIP Plan). Under the DRIP Plan, stockholders may reinvest dividends to purchase additional Company common stock without commission fees. The DRIP Plan also allows existing stockholders and other interested investors to purchase Company common stock through the transfer agent up to certain limits. The Company's transfer agent operates the DRIP Plan and purchases shares on the open market to provide shares for the DRIP Plan. |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
Short-term Debt [Abstract] | |
SHORT-TERM BORROWINGS | SHORT-TERM BORROWINGS On March 29, 2019, the Company and Cal Water entered into certain syndicated credit agreements, which provide for unsecured revolving credit facilities of up to an initial aggregate amount of $550.0 million for a term of five years . The revolving credit facilities amend, expand, and replace the Company’s and its subsidiaries’ prior credit facilities originally entered into on May 10, 2015. The new credit facilities extended the terms until March 29, 2024, and increased Cal Water’s unsecured revolving line of credit. The Company and subsidiaries that it designates may borrow up to $150.0 million under the Company’s revolving credit facility. Cal Water may borrow up to $400.0 million under its revolving credit facility. All borrowings must be repaid within 24 months unless a different period is required or authorized by the CPUC. Additionally, the credit facilities may be increased by up to an incremental $150.0 million under the Cal Water facility and $50.0 million under the Company facility, subject in each case to certain conditions. The proceeds from the revolving credit facilities may be used for working capital purposes, including the short-term financing of capital projects. Borrowings under the credit facilities typically have maturities varying between one and six months and will bear interest annually at a rate equal to (i) the base rate or (ii) the Eurodollar rate, plus an applicable margin of 0.650% to 0.875% , depending on the Company and its subsidiaries’ consolidated total capitalization ratio. The revolving credit facilities 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. As of December 31, 2019 and 2018, the outstanding borrowings on the Company lines of credit were $55.1 million . The borrowings on the Cal Water lines of credit was $120.0 million and $10.0 million as of December 31, 2019 and 2018, respectively. The average borrowing rate for borrowings on the Company and Cal Water lines of credit during 2019 was 3.23% compared to 2.91% for the same period last year. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
LONG-TERM DEBT | As of December 31, 2019 and 2018, long-term debt outstanding was: Series Interest Rate Maturity Date 2019 2018 First Mortgage Bonds YYY 4.170 % 2059 $ 200,000 $ — WWW 4.070 % 2049 100,000 — VVV 3.400 % 2029 100,000 — TTT 4.610 % 2056 10,000 10,000 SSS 4.410 % 2046 40,000 40,000 QQQ 3.330 % 2025 50,000 50,000 RRR 4.310 % 2045 50,000 50,000 PPP 5.500 % 2040 100,000 100,000 LL 5.875 % 2019 — 100,000 UUU 3-month LIBOR plus 70 basis points 2020 — 300,000 AAA 7.280 % 2025 20,000 20,000 BBB 6.770 % 2028 20,000 20,000 CCC 8.150 % 2030 20,000 20,000 DDD 7.130 % 2031 20,000 20,000 EEE 7.110 % 2032 20,000 20,000 GGG 5.290 % 2022 5,455 7,273 HHH 5.290 % 2022 5,455 7,273 III 5.540 % 2023 3,636 4,546 OOO 6.020 % 2031 20,000 20,000 CC 9.860 % 2020 16,700 16,800 Total First Mortgage Bonds 801,246 805,892 California Department of Water Resources Loans 3.0% to 7.0% 2019 - 39 5,604 5,830 Other long-term debt 6,465 6,978 Unamortized debt issuance costs (4,693 ) (3,762 ) Total long-term debt, net of unamortized debt issuance costs 808,622 814,938 Less current maturities of long-term debt, net 21,868 104,911 Long-term debt, net $ 786,754 $ 710,027 On June 11, 2019, Cal Water completed the sale and issuance of $400.0 million in aggregate principal amount of First Mortgage Bonds (the bonds) in a private placement. The bonds consist of $100.0 million of 3.40% bonds, series VVV, maturing June 11, 2029; $100.0 million of 4.07% bonds, series WWW, maturing June 11, 2049; and $200.0 million of 4.17% bonds, series YYY, maturing June 11, 2059. Interest on the bonds will accrue semi-annually and be payable in arrears. The bonds will rank equally with all of Cal Water’s other First Mortgage Bonds and will be secured by liens on Cal Water’s properties, subject to certain exceptions and permitted liens. Cal Water used the net proceeds from the sale of the bonds to pay down outstanding short-term borrowings and to redeem $300.0 million of bond series UUU. The bonds were not registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. On September 13, 2018, Cal Water sold $300.0 million of floating rate First Mortgage Bonds UUU due in September of 2020 in a private placement. The floating interest rate was set at three-month LIBOR plus 70 basis points , accrued quarterly, and was payable in arrears. The bonds were redeemed at par during the second quarter of 2019. In 2019, Cal Water also repaid $100.0 million of First Mortgage Bonds LL, which matured in 2019. In 2018, Cal Water repaid $10.9 million of First Mortgage Bonds JJJ and LLL, which matured in 2018. On October 4, 2011, Cal Water entered into a capital lease arrangement with the City of Hawthorne to operate the City's water system for a 15 -year period. The $5.2 million and $5.8 million capital lease liability as of December 31, 2019 and 2018 is included in other long-term debt and current maturities set forth above. |
OTHER ACCRUED LIABILITIES
OTHER ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
OTHER ACCRUED LIABILITIES | OTHER ACCRUED LIABILITIES As of December 31, 2019 and 2018, other accrued liabilities were: 2019 2018 Accrued and deferred compensation $ 22,543 $ 20,229 Accrued benefits and workers' compensation claims 6,241 5,896 Unearned revenue and customer deposit 2,024 1,915 Due to contracts and agencies 3,325 3,196 Current portion of operating lease 1,452 — Other 2,988 2,270 Total other accrued liabilities $ 38,573 $ 33,506 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) consisted of the following: Federal State Total 2019 Current $ — $ 3 $ 3 Deferred 15,582 2,086 17,668 Total $ 15,582 $ 2,089 $ 17,671 2018 Current $ — $ 3 $ 3 Deferred 15,995 (126 ) 15,869 Total $ 15,995 $ (123 ) $ 15,872 2017 Current $ — $ 3 $ 3 Deferred 35,881 943 36,824 Total income tax $ 35,881 $ 946 $ 36,827 The Company's 2019, 2018 and 2017 qualified tax repairs and maintenance deductions totaled $70.0 million , $102.0 million , and $85.9 million , respectively. The total federal NOL carry-forward was $57.3 million and the state of California NOL carry-forward was $95.2 million as of December 31, 2019. Management has concluded that the NOL carry-forward amounts are more likely than not to be recovered and therefore require no valuation allowance. The loss and credit carry-forward will begin to expire in 2027. As of December 31, 2019, the California Enterprise Zone (EZ) credit was $4.2 million net of federal tax benefit for qualified property purchased before January 1, 2015, and placed in service before January 1, 2016. The Company has carry-forward California EZ credits of $2.2 million net of any unrecognized tax benefit. Unused State of California EZ credits can carry-forward until 2024. The difference between the recorded and the statutory income tax expense is reconciled in the table below: 2019 2018 2017 Statutory income tax $ 16,965 $ 17,105 $ 38,419 Increase (reduction) in taxes due to: State income taxes net of federal tax benefit 5,639 5,685 6,017 Effect of regulatory treatment of fixed asset differences (3,696 ) (5,954 ) (4,584 ) Investment tax credits (74 ) (74 ) (74 ) AFUDC equity (1,870 ) (1,106 ) (1,528 ) Share base stock compensation 302 (278 ) (581 ) Other 405 494 (842 ) Total income tax $ 17,671 $ 15,872 $ 36,827 The effect of regulatory treatment of fixed asset differences includes estimated repair and maintenance deductions and asset related flow through items. On December 22, 2017, the U.S. government enacted expansive tax legislation commonly referred to as the TCJA. Among other provisions, the TCJA reduces the federal income tax rate from 35 percent to 21 percent beginning on January 1, 2018 and eliminated bonus depreciation for utilities. The TCJA required the Company to re-measure all existing deferred income tax assets and liabilities to reflect the reduction in the federal tax rate. The Company adjusted and recorded the impacts of the TCJA in accordance with rules issued by the SEC in Staff Accounting Bulletin No. 118, for the re-measurement of deferred tax balances as of December 31, 2017. A TCJA refund of $108.0 million was recorded as a provisional estimate on December 31, 2017. During the year of 2019, the Company further analyzed its deferred tax balances, tax regulatory asset and tax regulatory liability. As a result, the TCJA refund was $121.0 million , with gross up $47.0 million , total regulatory liabilities for TCJA was $168.0 million as of December 31, 2019. The Company continued working with state regulators to finalize the ratepayer net refund of $121.0 million to ensure compliance with federal normalization rules. 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 deferred tax assets and deferred tax liabilities as of December 31, 2019 and 2018, are presented in the following table: 2019 2018 Deferred tax assets: Developer deposits for extension agreements and contributions in aid of construction $ 25,114 $ 39,074 Net operating loss carryforward and tax credits 11,029 8,257 Pension liability 10,095 8,725 Income tax regulatory liability 47,196 44,072 Operating leases liabilities 4,024 — Other 2,975 4,273 Total deferred tax assets 100,433 104,401 Deferred tax liabilities: Property related basis and depreciation differences 297,470 288,544 WRAM/MCBA and interim rates balancing accounts 17,771 26,348 Operating lease-right to use asset 4,030 — Other 3,752 2,542 Total deferred tax liabilities 323,023 317,434 Net deferred tax liabilities $ 222,590 $ 213,033 The developer deposits for extension agreements and contributions in aid of construction (CIAC) decreased as compared to 2018 due to the method change in extension agreement tax treatment. For extension agreements, all developer deposits for service are taxable prior to 2019 for both federal and CA income tax purposes. The Company filed a method change with the IRS and received approval in 2019 to treat the extension agreement receipt from developer as a loan effective January 1, 2019. The state of California conformed with the IRS method change. For CIAC, all receipts from developers are taxable after TCJA for federal tax purpose. Only receipts for services are taxable for the state of California. A valuation allowance was not required at December 31, 2019 and 2018. Based on historical taxable income and future taxable income projections over the period in which the deferred assets are deductible, management believes it is more likely than not that the Company will realize the benefits of the deductible differences. The following table reconciles the changes in unrecognized tax benefits: December 31, 2019 December 31, 2018 December 31, 2017 Balance at beginning of year $ 9,716 $ 11,058 $ 10,499 Additions for tax positions taken during current year 1,292 1,787 559 Reduction to prior year tax position — (3,129 ) — Balance at end of year $ 11,008 $ 9,716 $ 11,058 The Company does not expect a material change in its unrecognized tax benefits within the next 12 months. The component of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of December 31, 2019, was $3.1 million , with the remaining balance representing the potential deferral of taxes to later years. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | vings Plan The Company sponsors a 401(k) qualified defined contribution savings plan that allows participants to contribute up to 20% of pre-tax compensation. Effective January 1, 2010, the Company matches 75 cents for each dollar contributed by the employee up to a maximum Company match of 6.0% of base salary. Company contributions were $6.5 million , $6.0 million , and $5.6 million , for the years 2019, 2018, and 2017, respectively. Pension Plans The Company provides a qualified, defined-benefit, non-contributory pension plan for substantially all employees. The accumulated benefit obligations of the pension plan are $615.5 million and $492.4 million as of December 31, 2019 and 2018, respectively. The fair value of pension plan assets was $573.6 million and $469.8 million as of December 31, 2019 and 2018, respectively. Prior to 2010, pension payment obligations were generally funded by the purchase of an annuity from a life insurance company. Beginning in 2010, the pension plan trust pays monthly benefits to retirees, rather than the purchase of an annuity. The Company also maintains an unfunded, non-qualified, supplemental executive retirement plan (SERP). The unfunded SERP accumulated benefit obligations were $71.8 million and $56.8 million as of December 31, 2019 and 2018, respectively. Benefit payments under the supplemental executive retirement plan are paid currently. Expected payments to be made for the pension and SERP plans are shown in the table below: Year Ending December 31, Pension SERP Total 2020 $ 13,765 $ 2,086 $ 15,851 2021 15,332 2,196 17,528 2022 16,992 2,336 19,328 2023 18,749 2,416 21,165 2024 20,517 2,415 22,932 2025-2029 130,341 12,907 143,248 Total payments $ 215,696 $ 24,356 $ 240,052 The expected benefit payments are based upon the same assumptions used to measure the Company's benefit obligation at December 31, 2019, and include estimated future employee service. The costs of the pension and retirement plans are charged to expense and utility plant. The Company makes annual contributions to fund the amounts accrued for pension cost. Other Postretirement Plan The Company provides substantially all active, permanent employees with medical, dental, and vision benefits through a self-insured plan. Employees retiring at or after age 58 , along with their spouses and dependents, continue participation in the plan by payment of a premium. Plan assets are invested in mutual funds, short-term money market instruments and commercial paper based upon a similar asset mix to the pension plan. Retired employees are also provided with a $10,000 dollar life insurance benefit. The Company records the costs of postretirement benefits other than pensions (PBOP) during the employees' years of active service. Postretirement benefit expense recorded in 2019, 2018, and 2017, was $7.9 million , $8.8 million , and $8.5 million , respectively. The remaining net periodic benefit cost was $2.1 million at December 31, 2019, and is being recovered through future customer rates and is recorded as a regulatory asset. The expected benefit payments, net of retiree premiums and Medicare Part D subsidies, are shown in the table below. Year Ending December 31, Expected Benefit Payments Before Medicare Part D Subsidy Effect of Medicare Part D Subsidy on Expected Benefit Payments Expected Benefit Payments Net of Medicare Part D Subsidy 2020 $ 3,305 $ (267 ) $ 3,038 2021 3,645 (301 ) 3,344 2022 4,011 (336 ) 3,675 2023 4,417 (371 ) 4,046 2024 4,864 (404 ) 4,460 2025-2029 29,403 (2,656 ) 26,747 Total payments $ 49,645 $ (4,335 ) $ 45,310 Benefit Plan Assets The Company actively manages pensions and PBOP trust (Plan) assets. The Company's investment objectives are: • Maximize the return on the assets, commensurate with the risk that the Company deems appropriate to meet the obligations of the Plans, minimize the volatility of the pension expense, and account for contingencies; • Generate a rate of return for the total portfolio that equals or exceeds the actuarial investment rate assumption; Additionally, the rate of return of the total fund is measured periodically against an index comprised of 35% of the Standard & Poor's Index, 15% of the Russell 2000 Index, 10% of the MSCI EAFE Index, and 40% of the Bloomberg Barclays U.S. Aggregate Bond Index. The index is consistent with the Company's rate of return objective and indicates the Company's long-term asset allocation objective. The Company applies a risk management framework for managing the risks associated with employee benefit plan trust assets. The guiding principles of this risk management framework are the clear articulation of roles and responsibilities, appropriate delegation of authority, and proper accountability and documentation. Trust investment policies and investment manager guidelines include provisions to ensure prudent diversification, manage risk through appropriate use of physical direct asset holdings and derivative securities, and identify permitted and prohibited investments. The Company's target asset allocation percentages for major categories of the pension plan are reflected in the table below: Minimum Exposure Target Maximum Exposure Fixed Income 35 % 40 % 45 % Total Domestic Equity: 40 % 50 % 60 % Small/Mid Cap Stocks 10 % 15 % 20 % Large Cap Stocks 30 % 35 % 45 % Non-U.S. Equities 5 % 10 % 15 % The fixed income category includes money market funds, short-term bond funds, and cash. The majority of fixed income investments range in maturities from less than 1 to 5 years . The Company's target allocation percentages for the PBOP trust is similar to the pension plan. The Company uses the following criteria to select investment funds: • Fund past performance; • Fund meets criteria of Employee Retirements Income Security Act (ERISA); • Timeliness and completeness of fund communications and reporting to investors; • Stability of fund management company; • Fund management fees; and • Administrative costs incurred by the Plan. Plan Fair Value Measurements The fair value measurements standard establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the standard are described below: 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. The following tables present the fair value of plan assets by major asset category at December 31, 2019 and 2018: December 31,2019 Pension Benefits Other Benefits Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Fixed Income $ 91,231 $ — $ — $ 91,231 $ 50,277 $ — $ — $ 50,277 Domestic Equity: Small/Mid Cap Stocks 43,238 — — 43,238 — — — — Domestic Equity: Large Cap Stocks 155,645 — — 155,645 78,277 — — 78,277 Non U.S. Equities 28,874 — — 28,874 — — — — Assets measured at net asset value (NAV) 254,587 — Total Plan Assets $ 318,988 $ — $ — $ 573,575 $ 128,554 $ — $ — $ 128,554 December 31,2018 Pension Benefits Other Benefits Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Fixed Income $ 188,934 $ — $ — $ 188,934 $ 45,446 $ — $ — $ 45,446 Domestic Equity: Small/Mid Cap Stocks 68,843 — — 68,843 — — — — Domestic Equity: Large Cap Stocks 165,862 — — 165,862 57,179 — — 57,179 Non U.S. Equities 46,135 — — 46,135 — — — Assets measured at NAV — — Total Plan Assets $ 469,774 $ — $ — $ 469,774 $ 102,625 $ — $ — $ 102,625 The pension benefits fixed income category includes $8.9 million and $5.0 million of money market fund investments as of December 31, 2019 and 2018, respectively. The other benefits fixed income category includes $4.5 million and $9.8 million of money market fund investments as of December 31, 2019 and 2018, respectively. Assets measured at NAV include investments in commingled funds that are comprised of fixed income and equity securities. These commingled funds are not publicly traded, and therefore no publicly quoted market price is readily available. The values of the commingled funds are measured at estimated fair value, which is determined based on the unit value of the funds and have not been classified in the fair value hierarchy tables above. There are no restrictions on the terms and conditions upon which the investments may be redeemed. Changes in Plan Assets, Benefits Obligations, and Funded Status The following table reconciles the funded status of the plans with the accrued pension liability and the net postretirement benefit liability as of December 31, 2019 and 2018: Pension Benefits Other Benefits 2019 2018 2019 2018 Change in projected benefit obligation: Beginning of year $ 639,921 $ 671,334 $ 127,204 $ 143,368 Service cost 26,718 29,027 7,475 8,317 Interest cost 26,966 23,994 5,441 4,873 Assumption change 122,779 (80,192 ) 13,695 (21,672 ) Plan amendment — — — 2,203 Experience loss (gain) 10,451 8,523 (1,994 ) (8,226 ) Benefits paid, net of retiree premiums (14,806 ) (12,765 ) (1,306 ) (1,659 ) End of year $ 812,029 $ 639,921 $ 150,515 $ 127,204 Change in plan assets: Fair value of plan assets at beginning of year $ 469,774 $ 460,878 $ 102,625 $ 100,563 Actual return on plan assets 97,811 (22,576 ) 19,730 (4,320 ) Employer contributions 20,796 44,237 7,505 8,041 Retiree contributions and Medicare part D subsidies — — 1,874 2,025 Benefits paid (14,806 ) (12,765 ) (3,180 ) (3,684 ) Fair value of plan assets at end of year $ 573,575 $ 469,774 $ 128,554 $ 102,625 Funded status(1) $ (238,454 ) $ (170,147 ) $ (21,961 ) $ (24,579 ) Unrecognized actuarial loss 177,750 117,973 15,822 18,618 Unrecognized prior service cost 10,242 15,290 2,129 2,326 Net amount recognized $ (50,462 ) $ (36,884 ) $ (4,010 ) $ (3,635 ) _______________________________________________________________________________ (1) The short-term portion of the pension benefits was $2.1 million as of December 31, 2019 and $1.9 million as of December 31, 2018 and is recorded as part of other accrued liabilities on the Company's 2019 and 2018 Consolidated Balance Sheets. Amounts recognized on the balance sheet consist of: Pension Benefits Other Benefits 2019 2018 2019 2018 Accrued benefit costs $ 62 $ 62 $ (2,441 ) $ (2,802 ) Accrued benefit liability (238,454 ) (170,147 ) (21,961 ) (24,579 ) Regulatory asset 187,930 133,201 20,392 23,746 Net amount recognized $ (50,462 ) $ (36,884 ) $ (4,010 ) $ (3,635 ) Valuation Assumptions Below are the actuarial assumptions used in determining the benefit obligation for the benefit plans: Pension Benefits Other Benefits 2019 2018 2019 2018 Weighted average assumptions as of December 31: Discount rate 3.20 % 4.20 % 3.25 % 4.25 % Long-term rate of return on plan assets 6.25 % 6.50 % 5.50 % 5.50 % Rate of compensation increases - pension plan 3.25 % 3.25 % — — Rate of compensation increases - SERP 3.75 % 3.75 % — — Cost of living adjustment 2.50 % 2.50 % — — The discount rate was derived from the FTSE Pension Discount Curve using the expected payouts for the plan. The long-term rate of return assumption is the expected rate of return on a balanced portfolio invested roughly 60% in equities and 40% in fixed income securities. Returns on equity investments were estimated based on estimates of dividend yield and real earnings added to a 2.50% long-term inflation rate. For the pension plans, the assumed returns were 7.25% for domestic equities and 8.56% for foreign equities. For the other benefits plan, the assumed returns was 6.88% for domestic equities. Returns on fixed-income investments were projected based on investment maturities and credit spreads added to a 2.50% long-term inflation rate. For the pension and other benefit plans, the assumed returns were 3.97% for fixed income investments and 2.34% for short-term cash investments. The average return for the pension and other benefit plans for the last 5 and 10 years was 7.60% and 8.60% , respectively. The Company is using a long-term rate of return of 6.25% for the pension plan and 5.50% for the other benefit plan, which is between the 25th and 75th percentile of expected results. In 2019, the Company used the Society of Actuaries' Pri-2012 Total Dataset Mortality Tables for private-sector retirement plans in the United States and Mortality Improvement Scale (MP-2019) for measuring retirement plan obligations. Components of Net Periodic Benefit Cost Net periodic benefit costs for the pension and other postretirement plans for the years ended December 31, 2019 and 2018, included the following components: Pension Plan Other Benefits 2019 2018 2017 2019 2018 2017 Service cost $ 26,718 $ 29,027 $ 23,801 $ 7,475 $ 8,317 $ 7,152 Interest cost 26,966 23,994 23,256 5,441 4,873 4,988 Expected return on plan assets (30,285 ) (27,702 ) (24,119 ) (5,794 ) (5,639 ) (4,875 ) Net amortization and deferral 10,975 16,233 12,962 758 1,281 1,186 Net periodic benefit cost $ 34,374 $ 41,552 $ 35,900 $ 7,880 $ 8,832 $ 8,451 Service cost portion of the pension plan and other postretirement benefits is recognized in administrative and general within the Consolidated Statements of 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 cost within the Consolidated Statements of Income. Below are the actuarial assumptions used in determining the net periodic benefit costs for the benefit plans, which uses the end of the prior year as the measurement date: Pension Benefits Other Benefits 2019 2018 2019 2018 Weighted average assumptions as of December 31: Discount rate 4.20 % 3.60 % 4.25 % 3.65 % Long-term rate of return on plan assets 6.50 % 6.50 % 5.50 % 5.50 % Rate of compensation increases - pension plan 3.25 % 3.25 % — — Rate of compensation increases - SERP 3.75 % 3.75 % — — Cost of living adjustment 2.50 % 2.50 % The health care cost trend rate assumption has a significant effect on the amounts reported. For 2019 measurement purposes, the Company assumed a 7.0% annual rate of increase in the per capita cost of covered benefits with the rate decreasing to 5.3% by 2022, then gradually grading down to 4.3% over the next 50 years . A 1-percentage point change in assumed health care cost trends is estimated to have the following effect: 1-Percentage Point Increase 1-Percentage Point (Decrease) Effect on total service and interest costs $ 3,610 $ (2,650 ) Effect on accumulated postretirement benefit obligation $ 33,945 $ (25,757 ) The Company intends to make annual contributions that meet the funding requirements of ERISA. The Company estimates in 2020 that the annual contribution to the pension plans will be $38.0 million and the annual contribution to the other postretirement plan will be $7.5 million . |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLANS | The Company's equity incentive plan was approved and amended by stockholders on April 27, 2005 and May 20, 2014. The Company is authorized to issue awards up to 2,000,000 shares of common stock. The following table lists the number of annual RSAs granted and canceled in 2019 and 2018: 2019 2018 RSAs granted 36,691 47,273 RSAs canceled 17,134 19,742 Officer RSAs granted in 2019 and 2018 vest over 36 months with the first year cliff vesting. Director RSAs generally vest at the end of 12 months . During 2019 and 2018, the RSAs granted were valued at $52.83 and $35.40 per share, respectively, based upon the fair market value of the Company's common stock on the date of grant. The following table lists the number of performance-based RSUs granted, issued, and canceled in 2019 and 2018: 2019 2018 RSUs granted 26,473 28,594 RSUs issued 62,726 48,753 RSUs canceled 31,177 24,009 Each award reflects a target number of common shares that may be issued to the award recipient. The 2019 and 2018 awards may be earned upon the completion of a 3 -year performance period. Whether RSUs are earned at the end of the performance period will be determined based on the achievement of certain performance objectives set by the Board of Director Compensation Committee in connection with the issuance of the RSUs. The performance objectives are based on the Company's business plan covering the performance period. The performance objectives include achieving the budgeted return on equity, budgeted investment in utility plant, customer service standards, employee safety standards and water quality standards. Depending on the results achieved during the 3 -year performance period, the actual number of shares that a grant recipient receives at the end of the performance period may range from 0% to 200% of the target shares granted, provided that the grantee is continuously employed by the Company through the vesting date. If prior to the vesting date employment is terminated by reason of death, disability or normal retirement, then a pro rata portion of this award will vest. RSUs are not included in diluted shares until earned. The RSUs are recognized as expense ratably over the 3 year performance period using a fair market value of $52.83 per share for the 2019 RSUs and $35.40 per share for the 2018 RSUs based on an estimate of RSUs earned during the performance period. The Company has recorded compensation costs for the RSAs and RSUs which are included in administrative and general operating expenses in the amount of $6.5 million for 2019 and $3.1 million for 2018 and 2017. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 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 hierarchal 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 described in Note 11 - Employee Benefit Plans. 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 1.83% . Advances for construction fair values were estimated using broker quotes from companies that frequently purchase these investments. December 31, 2019 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities, net $ 808,622 $ — $ 873,454 $ — $ 873,454 Advances for construction 191,062 — 79,550 — 79,550 Total $ 999,684 $ — $ 953,004 $ — $ 953,004 December 31, 2018 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities, net $ 814,938 $ — $ 849,551 $ — $ 849,551 Advances for construction 186,342 — 77,204 — 77,204 Total $ 1,001,280 $ — $ 926,755 $ — $ 926,755 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Commitments Water Supply Contracts The Company has long-term commitments to purchase water from water wholesalers. The commitments are noted in the table below. Water Supply Contracts* 2020 $ 34,550 2021 34,550 2022 34,551 2023 34,551 2024 34,549 Thereafter 604,342 _______________________________________________________________________________ * Estimated annual contractual obligations are based on the same payment levels as 2019. Water Supply Contracts The Company has a long-term contract with the Santa Clara Valley Water District that requires the Company to purchase minimum annual water quantities. Purchases are priced at the districts then-current wholesale water rate. The Company operates to purchase sufficient water to equal or exceed the minimum quantities under the contract. The total paid to Santa Clara Valley Water District was $13.6 million in 2019, $9.7 million in 2018, and $9.1 million in 2017. The Company also has a water supply contract with Stockton East Water District (SEWD) that requires a fixed monthly payment. Each year, the fixed monthly payment is adjusted for changes to SEWD's costs. The total paid under the contract was $13.3 million in 2019, $13.7 million in 2018, and $14.1 million in 2017. On September 21, 2005, the Company entered into an agreement with Kern County Water Agency (Agency) to obtain treated water for the Company's operations. The term of the agreement is to January 1, 2035, or until the repayment of the Agency's bonds (described hereafter) occurs. Under the terms of the agreement, the Company is obligated to purchase approximately 20,500 acre feet of treated water per year. The Company is obligated to pay the Capital Facilities Charge and the Treated Water Charge regardless of whether it can use the water in its operation, and is obligated for these charges even if the Agency cannot produce an adequate amount to supply the 20,500 acre feet in the year. This agreement supersedes a prior agreement with Kern County Water Agency for the supply of 11,500 acre feet of water per year. Three other parties, including the City of Bakersfield, are also obligated to purchase a total of 32,500 acre feet per year under separate agreements with the Agency. Further, the Agency has the right to proportionally reduce the water supply provided to all of the participants if it cannot produce adequate supplies. If any of the other parties does not use its allocation, that party is obligated to pay its contracted amount. If any of the parties were to default on making payments of the Capital Facilities Charge, then the other parties are obligated to pay for the defaulting party's share on a pro-rata basis. If there is a payment default by a party and the remaining parties have to make payments, they are also entitled to a pro-rata share of the defaulting party's water allocation. The Company expects to use all its entitled water in its operations every year. In addition, if the Company were to pay for and receive additional amounts of water due to a default of another participating party; the Company believes it could use this additional water in its operations without incurring substantial incremental cost increases. If additional treated water is available, all parties have an option to purchase this additional treated water, subject to the Agency's right to allocate the water among the parties. The total obligation of all parties, excluding the Company, is approximately $82.4 million to the Agency. Based on the credit worthiness of the other participants, which are government entities, it is believed to be highly unlikely that the Company would be required to assume any other parties' obligations under the contract due to their default. The Company pays a capital facilities charge and charges related to treated water that together total $9.1 million annually, which equates to $442.88 dollars per acre foot. Total treated water charge for 2019 was $3.6 million . As treated water is being delivered, the Company will also be obligated for the Company's portion of the operating costs; that portion is currently estimated to be $22.05 dollars per acre foot. The actual amount will vary due to variations from estimates, inflation, and other changes in the cost structure. Our overall estimated cost of $442.88 dollars per acre foot is less than the estimated cost of procuring untreated water (assuming water rights could be obtained) and then providing treatment. Leases The Company has operating and finance leases for water systems, offices, land easements, licenses, equipment, and other facilities. The leases generally have remaining lease terms of 1 year to 50 years , some of which include options to extend the lease for up to 25 years . The exercise of lease renewal options is at the Company’s sole discretion. Most of the Company’s lease agreements contain mutual termination options that require prior written notice by either lessee or lessor. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Certain leases include options to purchase the leased property. The depreciable life of the assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option that is reasonably certain of exercise. Leases with an initial term of 12 months or less are not recorded on the balance sheet as the Company applied the short-term lease exception allowed by the FASB guidance. Lease expense for these leases is recognized on a straight-line basis over the lease term. A subset of the Company’s leases contains variable lease payments that depend on changes in the CPI. The Company determines if an arrangement is a lease at contract inception. Generally, a lease agreement exists if the Company determines that the arrangement gives the Company control over the use of an identified asset and obtains substantially all of the benefits from the identified asset. The right-of-use (ROU) assets that are recorded represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s operating leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset and lease liability may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Variable lease payments that are based on changes in CPI are included in the measurement of ROU asset and lease liability on the basis of the rate at lease commencement. Subsequent changes to the payments as a result of changes to the CPI rate are recognized in the period in which the obligation of these payments is incurred. Supplemental balance sheet information related to leases was as follows: As of December 31, 2019 Operating leases Other assets: Other $ 14,402 Other accrued liabilities $ 1,452 Other long-term liabilities 12,928 Total operating lease liabilities $ 14,380 Finance leases Depreciable plant and equipment $ 18,207 Accumulated depreciation and amortization (9,644 ) Net utility plant $ 8,563 Current maturities of long-term debt, net $ 680 Long-term debt, net 5,205 Total finance lease liabilities $ 5,885 Weighted average remaining lease term Operating leases 152 months Finance leases 76 months Weighted average discount rate Operating leases 3.7 % Finance leases 5.5 % The components of lease expense were as follows: 2019 Operating lease cost $ 1,874 Finance lease cost: Amortization of right-of-use assets $ 1,210 Interest on lease liabilities 347 Total finance lease cost $ 1,557 Short-term lease cost $ 1,700 Variable lease cost 264 Total lease cost $ 5,395 Supplemental cash flow information related to leases was as follows: 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,820 Operating cash flows from finance leases 347 Financing cash flows from finance leases 672 Non-cash activities: right-of-use assets obtained in exchange for lease obligations: Operating leases 2,109 Finance leases 672 Maturities of lease liabilities as of December 31, 2019 are as follows: Year Ending December 31, Operating Leases Finance Leases 2020 $ 1,951 $ 986 2021 1,734 987 2022 1,578 987 2023 1,459 1,506 2024 1,318 940 Thereafter 10,205 1,645 Total lease payments $ 18,245 $ 7,051 Less imputed interest $ (3,865 ) $ (1,166 ) Total $ 14,380 $ 5,885 As previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 and under the previous lease accounting standard, minimum lease payments, as of December 31, 2018, under non-cancelable operating leases by period were expected to be as follows: Operating Leases 2019 $ 1,771 2020 1,709 2021 1,485 2022 1,355 2023 1,261 Thereafter 10,538 Total $ 18,119 Rent expense under the previous lease accounting standard for operating leases was $2.0 million in 2018 and 2017. Contingencies Groundwater Contamination The Company has undertaken litigation against third parties to recover past and future costs related to ground water 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 contamination litigation to be used first to pay transactional expenses, then to make customers 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. As previously reported, Cal Water has filed with the City of Bakersfield, in the Superior Court of California, a lawsuit that names potentially PRPs, who manufactured and distributed products containing TCP in California. TCP has been detected in the ground water. The lawsuit seeks to recover treatment costs necessary to remove TCP. On December 20, 2017, Cal Water entered into an $85.0 million settlement agreement and release of claims with the PRPs, in California Water Service Company and City of Bakersfield v. The Dow Chemical Company, et al., Civil Case No. CIV-470999 (TCP Action). The TCP Action seeks damages and other relief related to the PRPs’ alleged contamination of drinking water supply and water wells with the chemical TCP. The proceeds from the settlement, after payment of the legal fees, was $56.0 million and will be used to reimburse a portion of the capital costs associated with Cal Water’s remediation efforts related to such alleged TCP contamination. As of December 31, 2019, Cal Water has used $47.6 million of the proceeds on remediation efforts related to the alleged TCP contamination. Under the terms of the Agreement, the PRPs are released from all claims regarding 47 of the 57 total claimed wells, and Cal Water agrees to file a dismissal with prejudice of the TCP Action. The PRPs are also released from future claims regarding TCP contamination of any other wells, unless and until Cal Water has installed granular activated carbon filtration systems or other then-approved Sate treatment technology for TCP on, or replaced, 36 wells due to TCP contamination. As of December 31, 2019, Cal Water believes the proceeds are non-taxable based upon its intent to reinvest them in qualifying assets. 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. The Company has recognized a liability of $2.5 million for all known legal matters as of December 31, 2019 primarily due to potable water main leaks and other work related 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. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | The Company's common stock is traded on the New York Stock Exchange under the symbol "CWT". 2019 First Second Third Fourth Operating revenue $ 126,111 $ 179,031 $ 232,537 $ 176,878 Net operating income 476 27,013 51,567 20,356 Net (loss) income (7,640 ) 16,996 42,424 11,336 Diluted (loss) earnings per share (0.16 ) 0.35 0.88 0.24 Common stock market price range: High 55.05 54.56 57.48 56.49 Low 44.60 48.00 49.52 48.78 Dividends paid per common share 0.1975 0.1975 0.1975 0.1975 2018 First Second Third Fourth Operating revenue $ 134,553 $ 174,938 $ 221,288 $ 167,417 Net operating income 9,836 26,839 47,329 26,536 Net (loss) income (762 ) 14,805 36,173 15,368 Diluted (loss) earnings per share (0.02 ) 0.31 0.75 0.32 Common stock market price range: High 45.85 41.65 42.95 49.07 Low 35.25 35.60 38.85 40.10 Dividends paid per common share 0.1875 0.1875 0.1875 0.1875 |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | On November 17, 2010, Cal Water issued $100.0 million aggregate principal amount of 5.500% First Mortgage Bonds due 2040, all of which is fully and unconditionally guaranteed by the Company. As a result of this guarantee arrangement, 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 December 31, 2019 and 2018, the Condensed Consolidating Statements of Income for the years ended December 31, 2019, 2018, and 2017, and the Condensed Consolidating Statements of Cash Flows for the years ended December 31, 2019, 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 year ended December 31, 2017 reflects the retrospective adoption of ASU 2016-09, which affected California Water Service Company and the other subsidiaries. The Condensed Consolidating Statement of Income for the year ended December 31, 2017 reflects the retrospective adoption of ASU 2017-07, which affected California Water Service Company and the other subsidiaries. CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2019 Parent Cal Water All Other Consolidating Consolidated (In thousands) ASSETS Utility plant: Utility plant $ 1,318 $ 3,332,331 $ 224,033 $ (7,197 ) $ 3,550,485 Less accumulated depreciation and amortization (1,107 ) (1,079,627 ) (65,561 ) 2,180 (1,144,115 ) Net utility plant 211 2,252,704 158,472 (5,017 ) 2,406,370 Current assets: Cash and cash equivalents 3,096 29,098 10,459 — 42,653 Receivables and unbilled revenue — 114,999 4,350 — 119,349 Receivables from affiliates 25,803 3,621 209 (29,633 ) — Other current assets 90 20,615 2,005 — 22,710 Total current assets 28,989 168,333 17,023 (29,633 ) 184,712 Other assets: Regulatory assets — 428,639 4,683 — 433,322 Investments in affiliates 777,170 — — (777,170 ) — Long-term affiliate notes receivable 30,060 — — (30,060 ) — Other assets 409 81,591 5,125 (221 ) 86,904 Total other assets 807,639 510,230 9,808 (807,451 ) 520,226 TOTAL ASSETS $ 836,839 $ 2,931,267 $ 185,303 $ (842,101 ) $ 3,111,308 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders' equity $ 779,906 $ 700,784 $ 81,604 $ (782,388 ) $ 779,906 Affiliate long-term debt — — 30,060 (30,060 ) — Long-term debt, net — 786,310 444 — 786,754 Total capitalization 779,906 1,487,094 112,108 (812,448 ) 1,566,660 Current liabilities: Current maturities of long-term debt, net — 21,732 136 — 21,868 Short-term borrowings 55,100 120,000 — — 175,100 Payables to affiliates — 6,115 23,518 (29,633 ) — Accounts payable — 104,419 4,044 — 108,463 Accrued expenses and other liabilities 313 50,569 2,408 — 53,290 Total current liabilities 55,413 302,835 30,106 (29,633 ) 358,721 Unamortized investment tax credits — 1,575 — — 1,575 Deferred income taxes 1,520 217,847 3,243 (20 ) 222,590 Pension and postretirement benefits other than pensions — 258,907 — — 258,907 Regulatory and other long-term liabilities — 262,859 7,397 — 270,256 Advances for construction — 190,568 494 — 191,062 Contributions in aid of construction — 209,582 31,955 — 241,537 TOTAL CAPITALIZATION AND LIABILITIES $ 836,839 $ 2,931,267 $ 185,303 $ (842,101 ) $ 3,111,308 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2018 Parent Cal Water All Other Consolidating Consolidated (In thousands) ASSETS Utility plant: Utility plant $ 1,318 $ 3,021,437 $ 213,888 $ (7,197 ) $ 3,229,446 Less accumulated depreciation and amortization (1,013 ) (938,072 ) (59,735 ) 2,097 (996,723 ) Net utility plant 305 2,083,365 154,153 (5,100 ) 2,232,723 Current assets: Cash and cash equivalents 3,779 33,763 9,634 — 47,176 Receivables and unbilled revenue 126 118,632 4,201 — 122,959 Receivables from affiliates 21,318 4,074 61 (25,453 ) — Other current assets 80 16,907 1,580 — 18,567 Total current assets 25,303 173,376 15,476 (25,453 ) 188,702 Other assets: Regulatory assets — 349,414 4,155 — 353,569 Investments in affiliates 733,156 — — (733,156 ) — Long-term affiliate notes receivable 27,829 — — (27,829 ) — Other assets 133 58,959 3,821 (203 ) 62,710 Total other assets 761,118 408,373 7,976 (761,188 ) 416,279 TOTAL ASSETS $ 786,726 $ 2,665,114 $ 177,605 $ (791,741 ) $ 2,837,704 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders' equity $ 730,157 $ 659,340 $ 79,093 $ (738,433 ) $ 730,157 Affiliate long-term debt — — 27,828 (27,828 ) — Long-term debt, net — 709,444 583 — 710,027 Total capitalization 730,157 1,368,784 107,504 (766,261 ) 1,440,184 Current liabilities: Current maturities of long-term debt, net — 104,664 247 — 104,911 Short-term borrowings 55,100 10,000 — — 65,100 Payables to affiliates 17 488 24,948 (25,453 ) — Accounts payable — 92,310 3,270 — 95,580 Accrued expenses and other liabilities 107 53,655 1,813 — 55,575 Total current liabilities 55,224 261,117 30,278 (25,453 ) 321,166 Unamortized investment tax credits — 1,649 — — 1,649 Deferred income taxes 1,376 210,052 1,648 (43 ) 213,033 Pension and postretirement benefits other than pensions — 193,538 — — 193,538 Regulatory and other long-term liabilities (31 ) 250,720 5,817 16 256,522 Advances for construction — 185,843 499 — 186,342 Contributions in aid of construction — 193,411 31,859 — 225,270 TOTAL CAPITALIZATION AND LIABILITIES $ 786,726 $ 2,665,114 $ 177,605 $ (791,741 ) $ 2,837,704 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended December 31, 2019 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating revenue $ — $ 669,769 $ 44,788 $ — $ 714,557 Operating expenses: Operations: Purchased water — 211,998 463 — 212,461 Purchased power — 22,338 9,024 — 31,362 Pump taxes — 11,518 — — 11,518 Administrative and general 23 98,675 9,919 — 108,617 Other operations — 83,148 7,496 (583 ) 90,061 Maintenance — 25,720 1,114 — 26,834 Depreciation and amortization 94 83,183 6,025 (82 ) 89,220 Income tax (benefit) expense (528 ) 14,677 1,273 858 16,280 Property and other taxes — 25,601 3,191 — 28,792 Total operating (income) expenses (411 ) 576,858 38,505 193 615,145 Net operating income 411 92,911 6,283 (193 ) 99,412 Other income and expenses: Non-regulated revenue 2,401 18,080 1,707 (2,983 ) 19,205 Non-regulated expenses — (12,526 ) (1,343 ) — (13,869 ) Other components of net periodic benefit cost — (5,559 ) (174 ) — (5,733 ) Allowance for equity funds used during construction — 6,685 — — 6,685 Gain on non-utility properties — 28 — — 28 Income tax expense on other income and expenses (672 ) (1,476 ) (78 ) 835 (1,391 ) Net other income 1,729 5,232 112 (2,148 ) 4,925 Interest: Interest expense 1,769 43,104 2,419 (2,401 ) 44,891 Allowance for borrowed funds used during construction — (3,408 ) (262 ) — (3,670 ) Net interest expense 1,769 39,696 2,157 (2,401 ) 41,221 Equity earnings of subsidiaries 62,745 — — (62,745 ) — Net income $ 63,116 $ 58,447 $ 4,238 $ (62,685 ) $ 63,116 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended December 31, 2018 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating revenue $ — $ 656,939 $ 41,257 $ — $ 698,196 Operating expenses: Operations: Purchased water — 206,675 428 — 207,103 Purchased power — 22,460 8,620 — 31,080 Pump taxes — 14,664 — — 14,664 Administrative and general — 90,563 10,218 — 100,781 Other operations — 73,521 6,930 (583 ) 79,868 Maintenance — 23,573 921 — 24,494 Depreciation and amortization 94 78,601 5,173 (87 ) 83,781 Income tax (benefit) expense (960 ) 17,678 948 923 18,589 Property and other taxes — 24,190 3,106 — 27,296 Total operating (income) expenses (866 ) 551,925 36,344 253 587,656 Net operating income 866 105,014 4,913 (253 ) 110,540 Other Income and Expenses: Non-regulated revenue 2,333 17,658 1,197 (2,916 ) 18,272 Non-regulated expenses — (22,122 ) (665 ) — (22,787 ) Other components of net periodic benefit cost — (8,886 ) (422 ) — (9,308 ) Allowance for equity funds used during construction — 3,954 — — 3,954 Gain on sale of non-utility properties — 50 — — 50 Income tax (expense) benefit on other income and expenses (652 ) 2,616 (63 ) 816 2,717 Net other income (loss) 1,681 (6,730 ) 47 (2,100 ) (7,102 ) Interest: Interest expense 1,711 38,288 2,251 (2,333 ) 39,917 Allowance for borrowed funds used during construction — (1,909 ) (154 ) — (2,063 ) Net interest expense 1,711 36,379 2,097 (2,333 ) 37,854 Equity earnings of subsidiaries 64,748 — — (64,748 ) — Net income $ 65,584 $ 61,905 $ 2,863 $ (64,768 ) $ 65,584 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended December 31, 2017 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating revenue $ — $ 635,604 $ 40,509 $ — $ 676,113 Operating expenses: Operations: Purchased water — 198,682 399 — 199,081 Purchased power — 21,021 7,841 — 28,862 Pump taxes — 13,924 — — 13,924 Administrative and general — 83,163 10,163 — 93,326 Other operations — 67,069 7,903 (524 ) 74,448 Maintenance — 21,595 935 — 22,530 Depreciation and amortization 94 72,327 4,453 (91 ) 76,783 Income tax (benefit) expense (498 ) 33,313 1,405 1,059 35,279 Property and other taxes (4 ) 21,778 3,023 — 24,797 Total operating (income) expenses (408 ) 532,872 36,122 444 569,030 Net operating income 408 102,732 4,387 (444 ) 107,083 Other Income and Expenses: Non-regulated revenue 1,985 14,608 1,814 (2,509 ) 15,898 Non-regulated expenses — (8,139 ) (1,251 ) — (9,390 ) Other components of net periodic benefit cost — (9,032 ) (556 ) — (9,588 ) Allowance for equity funds used during construction — 3,750 — — 3,750 Gain on sale of non-utility properties — 663 — — 663 Income tax expense on other income and expenses (809 ) (1,714 ) (47 ) 1,022 (1,548 ) Net other income (loss) 1,176 136 (40 ) (1,487 ) (215 ) Interest: Interest expense 1,131 35,116 2,026 (1,985 ) 36,288 Allowance for borrowed funds used during construction — (2,319 ) (41 ) — (2,360 ) Net interest expense 1,131 32,797 1,985 (1,985 ) 33,928 Equity earnings of subsidiaries 72,487 — — (72,487 ) — Net income $ 72,940 $ 70,071 $ 2,362 $ (72,433 ) $ 72,940 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2019 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating activities: Net income $ 63,116 $ 58,447 $ 4,238 $ (62,685 ) $ 63,116 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (62,745 ) — — 62,745 — Dividends received from Affiliates 38,023 — — (38,023 ) — Depreciation and amortization 94 85,175 6,101 (82 ) 91,288 Change in value of life insurance contract — (5,104 ) — — (5,104 ) Stock-based compensation — — 6,731 — 6,731 Gain on sale of non-utility properties — (28 ) — — (28 ) Changes in normalized deferred income taxes — 15,346 — — 15,346 Allowance for equity funds used during construction — (6,685 ) — — (6,685 ) Changes in operating assets and liabilities 321 1,883 220 — 2,424 Other changes in noncurrent assets and liabilities 6,632 (308 ) (4,640 ) 22 1,706 Net cash provided by operating activities 45,441 148,726 12,650 (38,023 ) 168,794 Investing activities: Utility plant expenditures — (262,500 ) (11,270 ) — (273,770 ) Proceeds from sale of non-utility assets — 28 — — 28 Investment in affiliates (19,294 ) — — 19,294 — Change in affiliate advances (4,379 ) 453 (174 ) 4,100 — Issuance of affiliate short-term borrowings (4,300 ) — — 4,300 — Collection of affiliate long-term debt 1,963 — — (1,963 ) — Purchase of life insurance — (2,216 ) — — (2,216 ) Net cash used in investing activities (26,010 ) (264,235 ) (11,444 ) 25,731 (275,958 ) Financing Activities: Short-term borrowings — 260,000 — — 260,000 Repayment of short-term borrowings — (150,000 ) — — (150,000 ) Investment from affiliates — 19,294 — (19,294 ) — Change in affiliate advances (17 ) 5,627 (1,510 ) (4,100 ) — Proceeds from affiliate short-term borrowings — — 4,300 (4,300 ) Repayment of affiliates long-term debt — — (1,963 ) 1,963 — Issuance of long-term debt, net of debt issuance costs — 398,204 — — 398,204 Retirement of long-term debt — (405,317 ) (251 ) — (405,568 ) Advances and contribution in aid of construction — 27,005 769 — 27,774 Refunds of advances for construction — (7,565 ) (1 ) — (7,566 ) Issuance of common stock 20,423 — — — 20,423 Repurchase of common stock (2,497 ) — — — (2,497 ) Dividends paid to non-affiliates (38,023 ) — — — (38,023 ) Dividends paid to affiliates — (36,297 ) (1,726 ) 38,023 — Net cash (used in) provided by financing activities (20,114 ) 110,951 (382 ) 12,292 102,747 Change in cash, cash equivalents, and restricted cash (683 ) (4,558 ) 824 — (4,417 ) Cash, cash equivalents, and restricted cash at beginning of period 3,779 34,239 9,697 — 47,715 Cash, cash equivalents, and restricted cash at end of year $ 3,096 $ 29,681 $ 10,521 $ — $ 43,298 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2018 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating activities: Net income $ 65,584 $ 61,905 $ 2,863 $ (64,768 ) $ 65,584 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (64,748 ) — — 64,748 — Dividends received from Affiliates 36,043 — — (36,043 ) — Depreciation and amortization 94 80,442 5,258 (87 ) 85,707 Change in value of life insurance contract — 2,334 — — 2,334 Stock-based compensation 3,141 — — — 3,141 Gain on sale of non-utility properties — (50 ) — — (50 ) Changes in normalized deferred income taxes — 20,909 — — 20,909 Allowance for equity funds used during construction — (3,954 ) — — (3,954 ) Changes in operating assets and liabilities (290 ) 16,943 (170 ) — 16,483 Other changes in noncurrent assets and liabilities (348 ) (12,284 ) 1,390 107 (11,135 ) Net cash provided by operating activities 39,476 166,245 9,341 (36,043 ) 179,019 Investing activities: Utility plant expenditures — (261,456 ) (10,251 ) — (271,707 ) Proceeds from sale of non-utility assets — 59 — — 59 Change in affiliate advances (689 ) 19 53 617 — Issuance of affiliate short-term borrowings (23,700 ) — — 23,700 — Collection of affiliate short-term debt 20,000 — — (20,000 ) — Collection of affiliate long-term debt 1,635 — — (1,635 ) — Life insurance benefits — 3,491 — — 3,491 Purchase of life insurance — (4,925 ) — — (4,925 ) Net cash used in investing activities (2,754 ) (262,812 ) (10,198 ) 2,682 (273,082 ) Financing Activities: Short-term borrowings 20,000 131,000 — — 151,000 Repayment of short-term borrowings (20,000 ) (341,000 ) — — (361,000 ) Change in affiliate advances 17 (93 ) 693 (617 ) — Proceeds from affiliate short-term borrowings 20,000 — 3,700 (23,700 ) — Repayment of affiliates short-term debt (20,000 ) — — 20,000 — Repayment of affiliates long-term debt — — (1,635 ) 1,635 — Issuance of long-term debt, net of debt issuance costs — 299,383 — — 299,383 Retirement of long-term debt — (16,200 ) (332 ) — (16,532 ) Advances and contribution in aid of construction — 18,218 394 — 18,612 Refunds of advances for construction — (7,279 ) (18 ) — (7,297 ) Repurchase of common stock (1,645 ) — — — (1,645 ) Dividends paid to non-affiliates (36,043 ) — — — (36,043 ) Dividends paid to affiliates — (34,624 ) (1,419 ) 36,043 — Net cash (used in) provided by financing activities (37,671 ) 49,405 1,383 33,361 46,478 Change in cash, cash equivalents, and restricted cash (949 ) (47,162 ) 526 — (47,585 ) Cash, cash equivalents, and restricted cash at beginning of period 4,728 81,401 9,171 — 95,300 Cash, cash equivalents, and restricted cash at end of year $ 3,779 $ 34,239 $ 9,697 $ — $ 47,715 California Water Service Group CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2017 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating activities: Net income $ 72,940 $ 70,071 $ 2,362 $ (72,433 ) $ 72,940 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (72,487 ) — — 72,487 — Dividends received from Affiliates 34,563 — — (34,563 ) — Depreciation and amortization 94 74,041 4,548 (91 ) 78,592 Change in value of life insurance contract — (3,058 ) — — (3,058 ) Stock-based compensation 3,118 — — — 3,118 Gain on sale of non-utility properties — (663 ) — — (663 ) Changes in normalized deferred income taxes — 21,087 — — 21,087 Allowance for equity funds used during construction — (3,750 ) — — (3,750 ) Changes in operating assets and liabilities 184 (36,611 ) 38 — (36,389 ) Other changes in noncurrent assets and liabilities 254 13,101 2,573 37 15,965 Net cash provided by operating activities 38,666 134,218 9,521 (34,563 ) 147,842 Investing activities: Utility plant expenditures (4 ) (252,055 ) (7,135 ) — (259,194 ) TCP settlement proceeds — 56,004 — — 56,004 Proceeds from sale of non-utility assets — 666 — — 666 Change in affiliate advances 172 (485 ) (50 ) 363 — Issuance of affiliate short-term borrowings (2,610 ) — — 2,610 — Collection of affiliate long-term debt 1,356 — — (1,356 ) — Life insurance benefits — 1,558 — — 1,558 Purchase of life insurance — (5,605 ) — — (5,605 ) Net cash used in investing activities (1,086 ) (199,917 ) (7,185 ) 1,617 (206,571 ) Financing Activities: Short-term borrowings — 265,000 — — 265,000 Repayment of short-term borrowings (2,000 ) (85,000 ) — — (87,000 ) Change in affiliate advances — 41 322 (363 ) — Proceeds from affiliate short-term borrowings — — 2,610 (2,610 ) — Repayment of affiliates long-term debt — — (1,356 ) 1,356 — Retirement of long-term debt — (26,223 ) (606 ) — (26,829 ) Advances and contribution in aid of construction — 21,075 294 — 21,369 Refunds of advances for construction — (8,373 ) (5 ) — (8,378 ) Repurchase of common stock (1,505 ) — — — (1,505 ) Dividends paid to non-affiliates (34,563 ) — — — (34,563 ) Dividends paid to affiliates — (33,015 ) (1,548 ) 34,563 — Net cash (used in) provided by financing activities (38,068 ) 133,505 (289 ) 32,946 128,094 Change in cash, cash equivalents, and restricted cash (488 ) 67,806 2,047 — 69,365 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 year $ 4,728 $ 81,401 $ 9,171 $ — $ 95,300 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include the Company's accounts and those of its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated from the consolidated financial statements. In the opinion of management, the consolidated financial statements reflect all adjustments that are necessary to provide a fair presentation of the results for the periods covered. The preparation of the Company's consolidated 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 consolidated 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, utility plant useful lives, 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. |
Operating Revenue | Operating Revenue The following table disaggregates the Company’s operating revenue by source for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Revenue from contracts with customers $ 664,358 $ 674,736 $ 622,474 Regulatory balancing account revenue 50,199 23,460 53,639 Total operating revenue $ 714,557 $ 698,196 $ 676,113 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 the Company's collections from customers, which generally require payment within 30 days of billing. The Company applies judgment, based principally on historical payment experience, in estimating its 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 or contract liability, 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 for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Residential $ 446,323 $ 450,062 $ 415,893 Business 129,223 130,041 118,279 Industrial 31,857 34,236 28,905 Public authorities 33,862 34,511 31,671 Other* 23,093 25,886 27,726 Total revenue from contracts with customers $ 664,358 $ 674,736 $ 622,474 _______________________________________________________________________________ * Other includes accrued unbilled revenue 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. These mechanisms include the following: 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), Conservation Balancing Account, Pension Cost Balancing Account, and Health Cost Balancing Account, generally provide for recovery of the adopted levels of expenses for purchased water, purchased power, pump taxes, water conservation program costs, pension, and health care. 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 The following tables disaggregate the Company’s non-regulated revenue by source for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Operating and maintenance revenue $ 12,655 $ 10,392 $ 8,621 Other non-regulated revenue 4,271 5,413 5,262 Non-regulated revenue from contracts with customers $ 16,926 $ 15,805 $ 13,883 Lease revenue 2,279 2,467 2,015 Total non-regulated revenue $ 19,205 $ 18,272 $ 15,898 |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts |
Utility Plant | Utility Plant Utility plant is carried at original cost when first constructed or purchased, or at fair value when acquired through acquisition. When depreciable plant is retired, the cost is eliminated from utility plant accounts and such costs are charged against accumulated depreciation. Maintenance of utility plant is charged to operating expenses as incurred. Maintenance projects are not accrued for in advance. Intangible assets acquired as part of water systems purchased are recorded at fair value. All other intangibles have been recorded at cost and are amortized over their useful life. |
Asset Retirement Obligations | Asset Retirement Obligation |
Cash and Cash Equivalents and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities Because the Company operates almost exclusively in a regulated business, the Company is subject to the accounting standards for regulated utilities. The Commissions in the states in which the Company operates establish rates that are designed to permit the recovery of the cost of service and a return on investment. The Company capitalizes and records regulatory assets for costs that would otherwise be charged to expense if it is probable that the incurred costs will be recovered in future rates. Regulatory assets are amortized over the future periods that the costs are expected to be recovered. If costs expected to be incurred in the future are currently being recovered through rates, the Company records those expected future costs as regulatory liabilities. In general, the Company does not earn a return on regulatory assets if the related costs do not accrue interest. Accordingly, the Company earns a return only on its regulatory assets for net WRAM and MCBA, pension cost balancing account, health cost balancing account, and interim rates receivable. In addition, the Company records regulatory liabilities when the Commissions require a refund to be made to the Company's customers over future periods. Determining probability requires significant judgment by management and includes, but is not limited to, consideration of testimony presented in regulatory hearings, proposed regulatory decisions, final regulatory orders, and the strength or status of applications for rehearing or state court appeals. If the Company determines that a portion of the Company's assets used in utility operations is not recoverable in customer rates, the Company would be required to recognize the loss of the assets disallowed. Cal Water submitted its 2018 GRC with the CPUC in July of 2019. As of February 27, 2020, the GRC approval is still pending. Regulatory assets and liabilities were comprised of the following as of December 31: Recovery Period 2019 2018 Regulatory Assets Pension and retiree group health Indefinitely $ 208,321 $ 156,947 Property-related temporary differences (tax benefits flowed through to customers) Indefinitely 104,931 99,376 Other accrued benefits Indefinitely 20,030 20,588 Net WRAM and MCBA long-term accounts receivable 1-2 years 25,465 17,134 Asset retirement obligations, net Indefinitely 19,567 18,197 Interim rates long-term accounts receivable 1 year 4,642 4,642 Tank coating 10 years 13,535 11,196 Recoverable property losses 10 years 5,000 1,275 Pension cost balancing account 1 year 21,465 16,494 Other components of net periodic benefit cost Indefinitely 5,145 3,221 Other regulatory assets Various 5,221 4,499 Total Regulatory Assets $ 433,322 $ 353,569 Regulatory Liabilities Future tax benefits due to customers $ 194,501 $ 180,205 Health cost balancing account 4,271 3,516 Conservation program 2,742 6,880 Net WRAM and MCBA long-term payable 211 222 Tax accounting memorandum account 806 5,039 Cost of capital memorandum account 151 2,834 1,2,3 trichloropropane settlement proceeds 8,426 12,142 Other regulatory liabilities 305 437 Total Regulatory Liabilities $ 211,413 $ 211,275 The Company's pension and postretirement health care benefits regulatory asset represents the unfunded obligation of the Company’s pension and postretirement benefit plans which the Company expects to recover from customers in the future for these plans. These plans are discussed in further detail in Note 11. The pension cost balancing account regulatory asset and the health cost balancing account regulatory liability represent incurred pension and healthcare costs that exceeded/was below the cost recovery in rates and is recoverable/refundable from/to customers. 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. The property-related temporary differences are primarily due to: (i) the difference between book and federal income tax depreciation on utility plant that was placed in service before the regulatory Commissions adopted normalization for rate making purposes; and (ii) certain (state) deferred taxes for which flow through accounting continues to be applied to originating deferred taxes. The regulatory asset will be recovered in rates in future periods as the tax effects of the temporary differences previously flowed-through to customers reverse. Other accrued benefits are accrued benefits for vacation, self-insured workers' compensation, and directors' retirement benefits. The net WRAM and MCBA long-term accounts receivable is the under-collected portion of recorded revenues that are not expected to be collected from customers within 12 months . The asset retirement obligation regulatory asset represents the difference between costs associated with asset retirement obligations and amounts collected in rates. Tank coating represents the maintenance costs for tank coating projects that are recoverable from customers. The future tax benefits due to customers primarily resulted from federal tax law changes enacted by the federal Tax Cuts and Jobs Act (TCJA) on December 22, 2017. The TCJA reduced the federal corporate income tax rate from 35 percent to 21 percent beginning on January 1, 2018, and GAAP requires the Company to re-measure all existing deferred income tax assets and liabilities to reflect the reduction in the federal tax rate on the enactment date. The Company is working with state regulators to finalize the ratepayer refund process to ensure compliance with federal normalization rules. The conservation program regulatory liability is for incurred conservation costs that were below the cost recovery in rates and is refundable to customers. |
Impairment of Long-Lived Assets, Intangibles and Goodwill | Impairment of Long-Lived Assets, Intangibles and Goodwill The Company's long-lived assets include transmission and distribution plant, equipment, land, buildings, and intangible assets. Long-lived assets, other than land, are depreciated or amortized over their estimated useful lives, and are reviewed for impairment whenever changes in circumstances indicate the carrying value of the assets may not be recoverable. Such circumstances would include items such as a significant decrease in the market value of a long-lived asset, a significant adverse change in the manner in which the asset is being used or planned to be used or in its physical condition, or a history of operating or cash flow losses associated with the uses of the asset. In addition, changes in the expected useful life of these long-lived assets may also be an impairment indicator. When such events or changes occur, the Company estimates the fair value of the asset from future cash flows expected to result from the use and, if applicable, the eventual disposition of the assets, and compare that to the carrying value of the asset. If the carrying value is greater than the fair value, then an impairment loss is recognized equal to the amount by which the asset's carrying value exceeds its fair value. The key variables that must be estimated include assumptions regarding sales volume, rates, operating costs, labor and other benefit costs, capital additions, assumed discount rates and other economic factors. These variables require significant management judgment and include inherent uncertainties since they are forecasting future events. A variation in the assumptions used could lead to a different conclusion regarding the realizability of an asset and, thus could have a significant effect on the consolidated financial statements. Goodwill is measured as the excess of the cost of an acquisition over the sum of the amounts assigned to identifiable assets acquired less liabilities assumed. Goodwill is not amortized but instead is reviewed annually at November 30 th for impairment or more frequently if impairment indicators arise. The impairment test is performed at the reporting unit level using a two- step, fair-value based approach. The first step determines the fair value of the reporting unit and compares it to the reporting unit's carrying value. If the fair value of the reporting unit is less than its carrying amount, a second step is performed to measure the amount of impairment loss, if any. The second step allocates the fair value of the reporting unit to the Company's tangible and intangible assets and liabilities. This derives an implied fair value for the reporting unit's goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized equal to the excess. |
Long-Term Debt Premium, Discount and Expense | Long-Term Debt Premium, Discount and Expense |
Advances for Construction | Advances for Construction Advances for construction consist of payments received from developers for installation of water production and distribution facilities to serve new developments. Advances are excluded from rate base for rate setting purposes. Annual refunds are made to developers without interest. Advances of $191.1 million , and $186.3 million at December 31, 2019 and 2018, respectively, will be refunded primarily over a 40 |
Contributions in Aid of Construction | Contributions in Aid of Construction Contributions in aid of construction represent payments received from developers, primarily for fire protection purposes, which are not subject to refunds. Facilities funded by contributions are included in utility plant, but excluded from rate base. Depreciation related to assets acquired from contributions is charged to the Contributions in Aid of Construction account. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Measurement of the deferred tax assets and liabilities is at enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. The Company evaluates the need for a valuation allowance on deferred tax assets based on historical taxable income and projected taxable income for future tax years. Historically the Commissions reduced revenue requirements for the tax effects of certain originating temporary differences and allowed recovery of these tax costs as the related temporary differences reverse. The Commissions have granted the Company rate increases to reflect the normalization of the tax benefits of the federal accelerated methods and available Investment Tax Credits (ITC) for all assets placed in service after 1980. ITCs are deferred and amortized over the lives of the related properties for book purposes. The CPUC sets rates utilizing the flow through method of accounting for state income taxes. Subsequent to 1986, Advances for Construction and Contributions in Aid of Construction were taxable for federal income tax purposes. Subsequent to 1991, Advances for Construction and Contributions in Aid of Construction were subject to California income tax. Due to changes in the federal tax law in 1996 and the California tax law in 1997 only deposits for new services were taxable. In late 2000, federal regulations were further modified to exclude contributions of fire services from taxable income. With the enactment of the TCJA, all Advances for Construction and Contributions in Aid of Construction received from developers after December 22, 2017 became taxable for federal income tax purposes. |
Workers' Compensation | Workers' Compensation For workers' compensation, the Company estimates the liability associated with claims submitted and claims not yet submitted based on historical data. Expenses for workers compensation insurance are included in rates on a pay-as- you-go basis. Therefore, a corresponding regulatory asset has been recorded. |
Earnings per Share | Earnings per Share The computations of basic and diluted earnings per share are noted below. Basic earnings per share are computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts were exercised or converted into common stock. Restricted Stock Awards (RSAs) are included in the common shares outstanding because the shares have all the same voting and dividend rights as issued and unrestricted common stock. Restricted Stock Unit Awards (RSUs) are not included in diluted shares for financial reporting until authorized by the Organization & Compensation Committee of the Board of Directors. |
Stock-based Compensation | Stock-based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award. The Company recognizes compensation expense on a straight-line basis over the requisite service period, which is the vesting period. |
Comprehensive Income or Loss | Comprehensive Income or Loss Comprehensive income for all periods presented was the same as net income. |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The Company did not have any accumulated other comprehensive income or loss transactions as of December 31, 2019 and 2018. |
New Accounting Standards | Adoption of New Accounting Standards in 2019 In February of 2016, the Financial Accounting Standards Board (FASB) issued guidance on leases, with amendments in 2018. 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. The Company adopted the standard using the modified retrospective method for its existing leases and did not restate its comparative periods in the period of adoption. The Company completed its review of its lease portfolio including significant leases and the Company designed and implemented new controls as part of the adoption of the new standard. The implementation increased lease assets and lease liabilities on the Consolidated Balance Sheet by $13.8 million as of January 1, 2019. The Company elected certain practical expedients and carried forward historical conclusions related to (1) contracts that contain leases, (2) existing lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. The Company also applied the practical expedient that allowed the Company to elect, as an accounting policy, by asset class, to include both lease and non-lease components as a single component and account for it as a lease. The Company applied the short-term lease exception which allowed the Company to not have to apply the recognition requirements of the new leasing guidance for short-term leases and to recognize lease payments in net income on a straight-line basis over the lease term. Otherwise, the new standard did not have a material impact on the remaining consolidated financial statements. New Accounting Standards Issued But Not Yet Adopted in 2019 In June of 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which changed the impairment model for certain financial assets that have a contractual right to receive cash, including trade and loan receivables. The new model required recognition based upon an estimation of expected credit losses rather than recognition of losses when it is probable that they have been incurred. ASU 2016-13 was effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company adopted the standard utilizing the modified retrospective method for its trade receivables and unbilled revenue on January 1, 2020. Based on the composition of the Company’s trade receivables and unbilled revenue, and expected future losses, the adoption of ASU 2016-13 is not expected to have a material impact on its consolidated financial statements. In January of 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminated step 2 of goodwill impairment test, which required a hypothetical purchase price allocation to measure goodwill impairment. Under the new guidance, a goodwill impairment loss will be measured at the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 was effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. The Company adopted the standard on January 1, 2020 and the adoption of the standard is not expected to have a material impact on its consolidated financial statements. In August of 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure for Fair Value Measurement, which modified the disclosure requirements on fair value measurements. The modifications in this update eliminated, amended, and added disclosure requirements for fair value measurements. ASU 2018-13 was effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. As required by the standard, the Company adopted the standard prospectively and retrospectively depending on the requirements of ASU 2018-13 on January 1, 2020. Since the Company, does not have level 3 fair value measurements or transfers between level 1 and level 2 fair value measurements, the Company does not expect the adoption of the standard to have a material impact on its footnote disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Disaggregation of revenue | In the following table, revenue from contracts with customers is disaggregated by class of customers for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Residential $ 446,323 $ 450,062 $ 415,893 Business 129,223 130,041 118,279 Industrial 31,857 34,236 28,905 Public authorities 33,862 34,511 31,671 Other* 23,093 25,886 27,726 Total revenue from contracts with customers $ 664,358 $ 674,736 $ 622,474 _______________________________________________________________________________ * Other includes accrued unbilled revenue The following tables disaggregate the Company’s non-regulated revenue by source for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Operating and maintenance revenue $ 12,655 $ 10,392 $ 8,621 Other non-regulated revenue 4,271 5,413 5,262 Non-regulated revenue from contracts with customers $ 16,926 $ 15,805 $ 13,883 Lease revenue 2,279 2,467 2,015 Total non-regulated revenue $ 19,205 $ 18,272 $ 15,898 The following table disaggregates the Company’s operating revenue by source for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Revenue from contracts with customers $ 664,358 $ 674,736 $ 622,474 Regulatory balancing account revenue 50,199 23,460 53,639 Total operating revenue $ 714,557 $ 698,196 $ 676,113 |
Schedule of lease payments to be received | Maturities of lease payments to be received are as follows: Year Ending December 31, Operating Leases 2020 $ 2,772 2021 2,012 2022 1,211 2023 725 2024 411 Thereafter 585 |
Schedule of activities in the allowance for doubtful accounts | The activities in the allowance for doubtful accounts were as follows: 2019 2018 2017 Beginning Balance $ 757 $ 773 $ 830 Provision for uncollectible accounts 1,664 1,703 1,570 Net write off of uncollectible accounts (1,650 ) (1,719 ) (1,627 ) Ending Balance $ 771 $ 757 $ 773 Other Receivables As of December 31, 2019 and 2018, other receivables were: 2019 2018 Accounts receivable from developers $ 6,299 $ 9,633 Other 7,888 7,468 Total other receivables $ 14,187 $ 17,101 |
Schedule of depreciable plant and equipment | The following table represents depreciable plant and equipment as of December 31: 2019 2018 Equipment $ 726,475 $ 643,581 Office buildings and other structures 281,462 267,948 Transmission and distribution plant 2,227,478 2,038,895 Total $ 3,235,415 $ 2,950,424 |
Schedule of estimated useful lives of depreciable plant and equipment | Depreciation of utility plant is computed on a straight-line basis over the assets' estimated useful lives including cost of removal of certain assets as follows: Useful Lives Equipment 5 to 50 years Transmission and distribution plant 40 to 65 years Office Buildings and other structures 50 years |
Schedule of allowance for funds used during construction | The amount of AFUDC related to equity funds and to borrowed funds for 2019, 2018, and 2017 are shown in the table below: 2019 2018 2017 Allowance for equity funds used during construction $ 6,685 $ 3,954 $ 3,750 Allowance for borrowed funds used during construction 3,670 2,063 2,360 Total $ 10,355 $ 6,017 $ 6,110 |
Schedule of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the Consolidated Balance Sheets that total to the amounts shown on the Consolidated Statements of Cash Flows: December 31, 2019 December 31, 2018 Cash and cash equivalents 42,653 47,176 Restricted cash (included in "taxes, prepaid expenses, and other assets") 645 539 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 43,298 $ 47,715 |
Schedule of regulatory assets and liabilities | Regulatory assets and liabilities were comprised of the following as of December 31: Recovery Period 2019 2018 Regulatory Assets Pension and retiree group health Indefinitely $ 208,321 $ 156,947 Property-related temporary differences (tax benefits flowed through to customers) Indefinitely 104,931 99,376 Other accrued benefits Indefinitely 20,030 20,588 Net WRAM and MCBA long-term accounts receivable 1-2 years 25,465 17,134 Asset retirement obligations, net Indefinitely 19,567 18,197 Interim rates long-term accounts receivable 1 year 4,642 4,642 Tank coating 10 years 13,535 11,196 Recoverable property losses 10 years 5,000 1,275 Pension cost balancing account 1 year 21,465 16,494 Other components of net periodic benefit cost Indefinitely 5,145 3,221 Other regulatory assets Various 5,221 4,499 Total Regulatory Assets $ 433,322 $ 353,569 Regulatory Liabilities Future tax benefits due to customers $ 194,501 $ 180,205 Health cost balancing account 4,271 3,516 Conservation program 2,742 6,880 Net WRAM and MCBA long-term payable 211 222 Tax accounting memorandum account 806 5,039 Cost of capital memorandum account 151 2,834 1,2,3 trichloropropane settlement proceeds 8,426 12,142 Other regulatory liabilities 305 437 Total Regulatory Liabilities $ 211,413 $ 211,275 |
Schedule Of Customer Advances For Construction, Refunds Due [Table Text Block] | Estimated refunds of advances are shown in the table below. Year Ending December 31, Refunds of Advances 2020 $ 7,628 2021 7,627 2022 7,627 2023 7,627 2024 7,627 Thereafter 152,926 Total refunds $ 191,062 |
Schedule of SARs which were dilutive | 2019 2018 2017 (In thousands, Net income available to common stockholders $ 63,116 $ 65,584 $ 72,940 Weighted average common shares, basic 48,168 48,060 48,009 Weighted average common shares, dilutive 48,168 48,060 48,009 Earnings per share—basic $ 1.31 $ 1.36 $ 1.52 Earnings per share—diluted $ 1.31 $ 1.36 $ 1.52 |
OTHER INCOME AND EXPENSES (Tabl
OTHER INCOME AND EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of various non-regulated activities | The Company conducts various non-regulated activities as reflected in the table below: 2019 2018 2017 Revenue Expense Revenue Expense Revenue Expense Operating and maintenance $ 12,655 $ 13,791 $ 10,392 $ 11,895 $ 8,621 $ 8,847 Leases 2,279 35 2,467 135 2,015 182 Design and construction 1,745 1,612 1,273 1,202 1,918 1,635 Meter reading and billing 412 163 391 157 256 (6 ) Interest income 92 — 133 — 68 — Change in value of life insurance contracts (gain) loss — (5,104 ) — 2,340 — (3,057 ) Other non-regulated income and expenses 2,022 3,372 3,616 7,058 3,020 1,789 Total $ 19,205 $ 13,869 $ 18,272 $ 22,787 $ 15,898 $ 9,390 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets that will continue to be amortized and those not amortized | As of December 31, 2019 and 2018, intangible assets that will continue to be amortized and those not amortized were: Weighted Average Amortization Period (years) 2019 2018 Gross Accumulated Net Gross Accumulated Net Amortized intangible assets: Water pumping rights usage $ 1,084 $ 116 $ 968 $ 1,084 $ 112 $ 972 Water planning studies 13 18,476 12,950 5,526 18,364 11,899 6,465 Leasehold improvements and other 17 1,519 889 630 1,519 882 637 Total $ 21,079 $ 13,955 $ 7,124 $ 20,967 $ 12,893 $ 8,074 Unamortized intangible assets: Perpetual water rights and other $ 3,776 $ — $ 3,776 $ 3,776 $ — $ 3,776 |
Schedule of finite-lived intangible assets, future amortization expense | Estimated future amortization expense related to intangible assets are shown in the table below: Year Ending December 31, Estimated Future Amortization Expense Related to Intangible Assets 2020 $ 958 2021 870 2022 747 2023 569 2024 446 Thereafter 3,534 Total $ 7,124 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of long-term debt outstanding | As of December 31, 2019 and 2018, long-term debt outstanding was: Series Interest Rate Maturity Date 2019 2018 First Mortgage Bonds YYY 4.170 % 2059 $ 200,000 $ — WWW 4.070 % 2049 100,000 — VVV 3.400 % 2029 100,000 — TTT 4.610 % 2056 10,000 10,000 SSS 4.410 % 2046 40,000 40,000 QQQ 3.330 % 2025 50,000 50,000 RRR 4.310 % 2045 50,000 50,000 PPP 5.500 % 2040 100,000 100,000 LL 5.875 % 2019 — 100,000 UUU 3-month LIBOR plus 70 basis points 2020 — 300,000 AAA 7.280 % 2025 20,000 20,000 BBB 6.770 % 2028 20,000 20,000 CCC 8.150 % 2030 20,000 20,000 DDD 7.130 % 2031 20,000 20,000 EEE 7.110 % 2032 20,000 20,000 GGG 5.290 % 2022 5,455 7,273 HHH 5.290 % 2022 5,455 7,273 III 5.540 % 2023 3,636 4,546 OOO 6.020 % 2031 20,000 20,000 CC 9.860 % 2020 16,700 16,800 Total First Mortgage Bonds 801,246 805,892 California Department of Water Resources Loans 3.0% to 7.0% 2019 - 39 5,604 5,830 Other long-term debt 6,465 6,978 Unamortized debt issuance costs (4,693 ) (3,762 ) Total long-term debt, net of unamortized debt issuance costs 808,622 814,938 Less current maturities of long-term debt, net 21,868 104,911 Long-term debt, net $ 786,754 $ 710,027 |
OTHER ACCRUED LIABILITIES (Tabl
OTHER ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other accrued liabilities | As of December 31, 2019 and 2018, other accrued liabilities were: 2019 2018 Accrued and deferred compensation $ 22,543 $ 20,229 Accrued benefits and workers' compensation claims 6,241 5,896 Unearned revenue and customer deposit 2,024 1,915 Due to contracts and agencies 3,325 3,196 Current portion of operating lease 1,452 — Other 2,988 2,270 Total other accrued liabilities $ 38,573 $ 33,506 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense (benefit) | Income tax expense (benefit) consisted of the following: Federal State Total 2019 Current $ — $ 3 $ 3 Deferred 15,582 2,086 17,668 Total $ 15,582 $ 2,089 $ 17,671 2018 Current $ — $ 3 $ 3 Deferred 15,995 (126 ) 15,869 Total $ 15,995 $ (123 ) $ 15,872 2017 Current $ — $ 3 $ 3 Deferred 35,881 943 36,824 Total income tax $ 35,881 $ 946 $ 36,827 |
Schedule of difference between the total income tax expense and computed tax expense | The difference between the recorded and the statutory income tax expense is reconciled in the table below: 2019 2018 2017 Statutory income tax $ 16,965 $ 17,105 $ 38,419 Increase (reduction) in taxes due to: State income taxes net of federal tax benefit 5,639 5,685 6,017 Effect of regulatory treatment of fixed asset differences (3,696 ) (5,954 ) (4,584 ) Investment tax credits (74 ) (74 ) (74 ) AFUDC equity (1,870 ) (1,106 ) (1,528 ) Share base stock compensation 302 (278 ) (581 ) Other 405 494 (842 ) Total income tax $ 17,671 $ 15,872 $ 36,827 |
Schedule of tax effects of differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities | The deferred tax assets and deferred tax liabilities as of December 31, 2019 and 2018, are presented in the following table: 2019 2018 Deferred tax assets: Developer deposits for extension agreements and contributions in aid of construction $ 25,114 $ 39,074 Net operating loss carryforward and tax credits 11,029 8,257 Pension liability 10,095 8,725 Income tax regulatory liability 47,196 44,072 Operating leases liabilities 4,024 — Other 2,975 4,273 Total deferred tax assets 100,433 104,401 Deferred tax liabilities: Property related basis and depreciation differences 297,470 288,544 WRAM/MCBA and interim rates balancing accounts 17,771 26,348 Operating lease-right to use asset 4,030 — Other 3,752 2,542 Total deferred tax liabilities 323,023 317,434 Net deferred tax liabilities $ 222,590 $ 213,033 |
Schedule of reconciliation of changes in unrecognized tax benefits | The following table reconciles the changes in unrecognized tax benefits: December 31, 2019 December 31, 2018 December 31, 2017 Balance at beginning of year $ 9,716 $ 11,058 $ 10,499 Additions for tax positions taken during current year 1,292 1,787 559 Reduction to prior year tax position — (3,129 ) — Balance at end of year $ 11,008 $ 9,716 $ 11,058 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Summary of target asset allocation percentages for major categories of the pension plan | The Company's target asset allocation percentages for major categories of the pension plan are reflected in the table below: Minimum Exposure Target Maximum Exposure Fixed Income 35 % 40 % 45 % Total Domestic Equity: 40 % 50 % 60 % Small/Mid Cap Stocks 10 % 15 % 20 % Large Cap Stocks 30 % 35 % 45 % Non-U.S. Equities 5 % 10 % 15 % The following tables present the fair value of plan assets by major asset category at December 31, 2019 and 2018: December 31,2019 Pension Benefits Other Benefits Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Fixed Income $ 91,231 $ — $ — $ 91,231 $ 50,277 $ — $ — $ 50,277 Domestic Equity: Small/Mid Cap Stocks 43,238 — — 43,238 — — — — Domestic Equity: Large Cap Stocks 155,645 — — 155,645 78,277 — — 78,277 Non U.S. Equities 28,874 — — 28,874 — — — — Assets measured at net asset value (NAV) 254,587 — Total Plan Assets $ 318,988 $ — $ — $ 573,575 $ 128,554 $ — $ — $ 128,554 December 31,2018 Pension Benefits Other Benefits Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Fixed Income $ 188,934 $ — $ — $ 188,934 $ 45,446 $ — $ — $ 45,446 Domestic Equity: Small/Mid Cap Stocks 68,843 — — 68,843 — — — — Domestic Equity: Large Cap Stocks 165,862 — — 165,862 57,179 — — 57,179 Non U.S. Equities 46,135 — — 46,135 — — — Assets measured at NAV — — Total Plan Assets $ 469,774 $ — $ — $ 469,774 $ 102,625 $ — $ — $ 102,625 |
Schedule of reconciliation of the funded status of the plans with the accrued pension liability and the net postretirement benefit liability | The following table reconciles the funded status of the plans with the accrued pension liability and the net postretirement benefit liability as of December 31, 2019 and 2018: Pension Benefits Other Benefits 2019 2018 2019 2018 Change in projected benefit obligation: Beginning of year $ 639,921 $ 671,334 $ 127,204 $ 143,368 Service cost 26,718 29,027 7,475 8,317 Interest cost 26,966 23,994 5,441 4,873 Assumption change 122,779 (80,192 ) 13,695 (21,672 ) Plan amendment — — — 2,203 Experience loss (gain) 10,451 8,523 (1,994 ) (8,226 ) Benefits paid, net of retiree premiums (14,806 ) (12,765 ) (1,306 ) (1,659 ) End of year $ 812,029 $ 639,921 $ 150,515 $ 127,204 Change in plan assets: Fair value of plan assets at beginning of year $ 469,774 $ 460,878 $ 102,625 $ 100,563 Actual return on plan assets 97,811 (22,576 ) 19,730 (4,320 ) Employer contributions 20,796 44,237 7,505 8,041 Retiree contributions and Medicare part D subsidies — — 1,874 2,025 Benefits paid (14,806 ) (12,765 ) (3,180 ) (3,684 ) Fair value of plan assets at end of year $ 573,575 $ 469,774 $ 128,554 $ 102,625 Funded status(1) $ (238,454 ) $ (170,147 ) $ (21,961 ) $ (24,579 ) Unrecognized actuarial loss 177,750 117,973 15,822 18,618 Unrecognized prior service cost 10,242 15,290 2,129 2,326 Net amount recognized $ (50,462 ) $ (36,884 ) $ (4,010 ) $ (3,635 ) _______________________________________________________________________________ (1) The short-term portion of the pension benefits was $2.1 million as of December 31, 2019 and $1.9 million as of December 31, 2018 and is recorded as part of other accrued liabilities on the Company's 2019 and 2018 Consolidated Balance Sheets. |
Schedule of amounts recognized in consolidated balance sheets | Amounts recognized on the balance sheet consist of: Pension Benefits Other Benefits 2019 2018 2019 2018 Accrued benefit costs $ 62 $ 62 $ (2,441 ) $ (2,802 ) Accrued benefit liability (238,454 ) (170,147 ) (21,961 ) (24,579 ) Regulatory asset 187,930 133,201 20,392 23,746 Net amount recognized $ (50,462 ) $ (36,884 ) $ (4,010 ) $ (3,635 ) |
Schedule of actuarial assumptions used in determining the benefit obligation | Below are the actuarial assumptions used in determining the benefit obligation for the benefit plans: Pension Benefits Other Benefits 2019 2018 2019 2018 Weighted average assumptions as of December 31: Discount rate 3.20 % 4.20 % 3.25 % 4.25 % Long-term rate of return on plan assets 6.25 % 6.50 % 5.50 % 5.50 % Rate of compensation increases - pension plan 3.25 % 3.25 % — — Rate of compensation increases - SERP 3.75 % 3.75 % — — Cost of living adjustment 2.50 % 2.50 % — — Below are the actuarial assumptions used in determining the net periodic benefit costs for the benefit plans, which uses the end of the prior year as the measurement date: Pension Benefits Other Benefits 2019 2018 2019 2018 Weighted average assumptions as of December 31: Discount rate 4.20 % 3.60 % 4.25 % 3.65 % Long-term rate of return on plan assets 6.50 % 6.50 % 5.50 % 5.50 % Rate of compensation increases - pension plan 3.25 % 3.25 % — — Rate of compensation increases - SERP 3.75 % 3.75 % — — Cost of living adjustment 2.50 % 2.50 % |
Schedule of components of net periodic benefit costs for the pension plans and other postretirement benefits | Net periodic benefit costs for the pension and other postretirement plans for the years ended December 31, 2019 and 2018, included the following components: Pension Plan Other Benefits 2019 2018 2017 2019 2018 2017 Service cost $ 26,718 $ 29,027 $ 23,801 $ 7,475 $ 8,317 $ 7,152 Interest cost 26,966 23,994 23,256 5,441 4,873 4,988 Expected return on plan assets (30,285 ) (27,702 ) (24,119 ) (5,794 ) (5,639 ) (4,875 ) Net amortization and deferral 10,975 16,233 12,962 758 1,281 1,186 Net periodic benefit cost $ 34,374 $ 41,552 $ 35,900 $ 7,880 $ 8,832 $ 8,451 |
Schedule of the effect of a one-percentage point change in assumed health care cost trends | A 1-percentage point change in assumed health care cost trends is estimated to have the following effect: 1-Percentage Point Increase 1-Percentage Point (Decrease) Effect on total service and interest costs $ 3,610 $ (2,650 ) Effect on accumulated postretirement benefit obligation $ 33,945 $ (25,757 ) |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | The following table lists the number of annual RSAs granted and canceled in 2019 and 2018: 2019 2018 RSAs granted 36,691 47,273 RSAs canceled 17,134 19,742 The following table lists the number of performance-based RSUs granted, issued, and canceled in 2019 and 2018: 2019 2018 RSUs granted 26,473 28,594 RSUs issued 62,726 48,753 RSUs canceled 31,177 24,009 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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. December 31, 2019 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities, net $ 808,622 $ — $ 873,454 $ — $ 873,454 Advances for construction 191,062 — 79,550 — 79,550 Total $ 999,684 $ — $ 953,004 $ — $ 953,004 December 31, 2018 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities, net $ 814,938 $ — $ 849,551 $ — $ 849,551 Advances for construction 186,342 — 77,204 — 77,204 Total $ 1,001,280 $ — $ 926,755 $ — $ 926,755 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of commitments future minimum payments due | The commitments are noted in the table below. Water Supply Contracts* 2020 $ 34,550 2021 34,550 2022 34,551 2023 34,551 2024 34,549 Thereafter 604,342 _______________________________________________________________________________ * Estimated annual contractual obligations are based on the same payment levels as 2019. |
Supplemental balance sheet information related to leases | Supplemental balance sheet information related to leases was as follows: As of December 31, 2019 Operating leases Other assets: Other $ 14,402 Other accrued liabilities $ 1,452 Other long-term liabilities 12,928 Total operating lease liabilities $ 14,380 Finance leases Depreciable plant and equipment $ 18,207 Accumulated depreciation and amortization (9,644 ) Net utility plant $ 8,563 Current maturities of long-term debt, net $ 680 Long-term debt, net 5,205 Total finance lease liabilities $ 5,885 Weighted average remaining lease term Operating leases 152 months Finance leases 76 months Weighted average discount rate Operating leases 3.7 % Finance leases 5.5 % |
Components of lease expense | The components of lease expense were as follows: 2019 Operating lease cost $ 1,874 Finance lease cost: Amortization of right-of-use assets $ 1,210 Interest on lease liabilities 347 Total finance lease cost $ 1,557 Short-term lease cost $ 1,700 Variable lease cost 264 Total lease cost $ 5,395 |
Supplemental cash flow information related to leases | Supplemental cash flow information related to leases was as follows: 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,820 Operating cash flows from finance leases 347 Financing cash flows from finance leases 672 Non-cash activities: right-of-use assets obtained in exchange for lease obligations: Operating leases 2,109 Finance leases 672 |
Maturities of lease liabilities | Maturities of lease liabilities as of December 31, 2019 are as follows: Year Ending December 31, Operating Leases Finance Leases 2020 $ 1,951 $ 986 2021 1,734 987 2022 1,578 987 2023 1,459 1,506 2024 1,318 940 Thereafter 10,205 1,645 Total lease payments $ 18,245 $ 7,051 Less imputed interest $ (3,865 ) $ (1,166 ) Total $ 14,380 $ 5,885 |
Maturities of lease liabilities | Maturities of lease liabilities as of December 31, 2019 are as follows: Year Ending December 31, Operating Leases Finance Leases 2020 $ 1,951 $ 986 2021 1,734 987 2022 1,578 987 2023 1,459 1,506 2024 1,318 940 Thereafter 10,205 1,645 Total lease payments $ 18,245 $ 7,051 Less imputed interest $ (3,865 ) $ (1,166 ) Total $ 14,380 $ 5,885 |
Future minimum lease payments | As previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 and under the previous lease accounting standard, minimum lease payments, as of December 31, 2018, under non-cancelable operating leases by period were expected to be as follows: Operating Leases 2019 $ 1,771 2020 1,709 2021 1,485 2022 1,355 2023 1,261 Thereafter 10,538 Total $ 18,119 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Data (Unaudited) | The Company's common stock is traded on the New York Stock Exchange under the symbol "CWT". 2019 First Second Third Fourth Operating revenue $ 126,111 $ 179,031 $ 232,537 $ 176,878 Net operating income 476 27,013 51,567 20,356 Net (loss) income (7,640 ) 16,996 42,424 11,336 Diluted (loss) earnings per share (0.16 ) 0.35 0.88 0.24 Common stock market price range: High 55.05 54.56 57.48 56.49 Low 44.60 48.00 49.52 48.78 Dividends paid per common share 0.1975 0.1975 0.1975 0.1975 2018 First Second Third Fourth Operating revenue $ 134,553 $ 174,938 $ 221,288 $ 167,417 Net operating income 9,836 26,839 47,329 26,536 Net (loss) income (762 ) 14,805 36,173 15,368 Diluted (loss) earnings per share (0.02 ) 0.31 0.75 0.32 Common stock market price range: High 45.85 41.65 42.95 49.07 Low 35.25 35.60 38.85 40.10 Dividends paid per common share 0.1875 0.1875 0.1875 0.1875 |
CONDENSED CONSOLIDATING FINAN_2
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Consolidating Balance Sheet | CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2019 Parent Cal Water All Other Consolidating Consolidated (In thousands) ASSETS Utility plant: Utility plant $ 1,318 $ 3,332,331 $ 224,033 $ (7,197 ) $ 3,550,485 Less accumulated depreciation and amortization (1,107 ) (1,079,627 ) (65,561 ) 2,180 (1,144,115 ) Net utility plant 211 2,252,704 158,472 (5,017 ) 2,406,370 Current assets: Cash and cash equivalents 3,096 29,098 10,459 — 42,653 Receivables and unbilled revenue — 114,999 4,350 — 119,349 Receivables from affiliates 25,803 3,621 209 (29,633 ) — Other current assets 90 20,615 2,005 — 22,710 Total current assets 28,989 168,333 17,023 (29,633 ) 184,712 Other assets: Regulatory assets — 428,639 4,683 — 433,322 Investments in affiliates 777,170 — — (777,170 ) — Long-term affiliate notes receivable 30,060 — — (30,060 ) — Other assets 409 81,591 5,125 (221 ) 86,904 Total other assets 807,639 510,230 9,808 (807,451 ) 520,226 TOTAL ASSETS $ 836,839 $ 2,931,267 $ 185,303 $ (842,101 ) $ 3,111,308 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders' equity $ 779,906 $ 700,784 $ 81,604 $ (782,388 ) $ 779,906 Affiliate long-term debt — — 30,060 (30,060 ) — Long-term debt, net — 786,310 444 — 786,754 Total capitalization 779,906 1,487,094 112,108 (812,448 ) 1,566,660 Current liabilities: Current maturities of long-term debt, net — 21,732 136 — 21,868 Short-term borrowings 55,100 120,000 — — 175,100 Payables to affiliates — 6,115 23,518 (29,633 ) — Accounts payable — 104,419 4,044 — 108,463 Accrued expenses and other liabilities 313 50,569 2,408 — 53,290 Total current liabilities 55,413 302,835 30,106 (29,633 ) 358,721 Unamortized investment tax credits — 1,575 — — 1,575 Deferred income taxes 1,520 217,847 3,243 (20 ) 222,590 Pension and postretirement benefits other than pensions — 258,907 — — 258,907 Regulatory and other long-term liabilities — 262,859 7,397 — 270,256 Advances for construction — 190,568 494 — 191,062 Contributions in aid of construction — 209,582 31,955 — 241,537 TOTAL CAPITALIZATION AND LIABILITIES $ 836,839 $ 2,931,267 $ 185,303 $ (842,101 ) $ 3,111,308 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2018 Parent Cal Water All Other Consolidating Consolidated (In thousands) ASSETS Utility plant: Utility plant $ 1,318 $ 3,021,437 $ 213,888 $ (7,197 ) $ 3,229,446 Less accumulated depreciation and amortization (1,013 ) (938,072 ) (59,735 ) 2,097 (996,723 ) Net utility plant 305 2,083,365 154,153 (5,100 ) 2,232,723 Current assets: Cash and cash equivalents 3,779 33,763 9,634 — 47,176 Receivables and unbilled revenue 126 118,632 4,201 — 122,959 Receivables from affiliates 21,318 4,074 61 (25,453 ) — Other current assets 80 16,907 1,580 — 18,567 Total current assets 25,303 173,376 15,476 (25,453 ) 188,702 Other assets: Regulatory assets — 349,414 4,155 — 353,569 Investments in affiliates 733,156 — — (733,156 ) — Long-term affiliate notes receivable 27,829 — — (27,829 ) — Other assets 133 58,959 3,821 (203 ) 62,710 Total other assets 761,118 408,373 7,976 (761,188 ) 416,279 TOTAL ASSETS $ 786,726 $ 2,665,114 $ 177,605 $ (791,741 ) $ 2,837,704 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders' equity $ 730,157 $ 659,340 $ 79,093 $ (738,433 ) $ 730,157 Affiliate long-term debt — — 27,828 (27,828 ) — Long-term debt, net — 709,444 583 — 710,027 Total capitalization 730,157 1,368,784 107,504 (766,261 ) 1,440,184 Current liabilities: Current maturities of long-term debt, net — 104,664 247 — 104,911 Short-term borrowings 55,100 10,000 — — 65,100 Payables to affiliates 17 488 24,948 (25,453 ) — Accounts payable — 92,310 3,270 — 95,580 Accrued expenses and other liabilities 107 53,655 1,813 — 55,575 Total current liabilities 55,224 261,117 30,278 (25,453 ) 321,166 Unamortized investment tax credits — 1,649 — — 1,649 Deferred income taxes 1,376 210,052 1,648 (43 ) 213,033 Pension and postretirement benefits other than pensions — 193,538 — — 193,538 Regulatory and other long-term liabilities (31 ) 250,720 5,817 16 256,522 Advances for construction — 185,843 499 — 186,342 Contributions in aid of construction — 193,411 31,859 — 225,270 TOTAL CAPITALIZATION AND LIABILITIES $ 786,726 $ 2,665,114 $ 177,605 $ (791,741 ) $ 2,837,704 |
Schedule of Condensed Consolidating Statement of Operations | CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended December 31, 2019 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating revenue $ — $ 669,769 $ 44,788 $ — $ 714,557 Operating expenses: Operations: Purchased water — 211,998 463 — 212,461 Purchased power — 22,338 9,024 — 31,362 Pump taxes — 11,518 — — 11,518 Administrative and general 23 98,675 9,919 — 108,617 Other operations — 83,148 7,496 (583 ) 90,061 Maintenance — 25,720 1,114 — 26,834 Depreciation and amortization 94 83,183 6,025 (82 ) 89,220 Income tax (benefit) expense (528 ) 14,677 1,273 858 16,280 Property and other taxes — 25,601 3,191 — 28,792 Total operating (income) expenses (411 ) 576,858 38,505 193 615,145 Net operating income 411 92,911 6,283 (193 ) 99,412 Other income and expenses: Non-regulated revenue 2,401 18,080 1,707 (2,983 ) 19,205 Non-regulated expenses — (12,526 ) (1,343 ) — (13,869 ) Other components of net periodic benefit cost — (5,559 ) (174 ) — (5,733 ) Allowance for equity funds used during construction — 6,685 — — 6,685 Gain on non-utility properties — 28 — — 28 Income tax expense on other income and expenses (672 ) (1,476 ) (78 ) 835 (1,391 ) Net other income 1,729 5,232 112 (2,148 ) 4,925 Interest: Interest expense 1,769 43,104 2,419 (2,401 ) 44,891 Allowance for borrowed funds used during construction — (3,408 ) (262 ) — (3,670 ) Net interest expense 1,769 39,696 2,157 (2,401 ) 41,221 Equity earnings of subsidiaries 62,745 — — (62,745 ) — Net income $ 63,116 $ 58,447 $ 4,238 $ (62,685 ) $ 63,116 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended December 31, 2018 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating revenue $ — $ 656,939 $ 41,257 $ — $ 698,196 Operating expenses: Operations: Purchased water — 206,675 428 — 207,103 Purchased power — 22,460 8,620 — 31,080 Pump taxes — 14,664 — — 14,664 Administrative and general — 90,563 10,218 — 100,781 Other operations — 73,521 6,930 (583 ) 79,868 Maintenance — 23,573 921 — 24,494 Depreciation and amortization 94 78,601 5,173 (87 ) 83,781 Income tax (benefit) expense (960 ) 17,678 948 923 18,589 Property and other taxes — 24,190 3,106 — 27,296 Total operating (income) expenses (866 ) 551,925 36,344 253 587,656 Net operating income 866 105,014 4,913 (253 ) 110,540 Other Income and Expenses: Non-regulated revenue 2,333 17,658 1,197 (2,916 ) 18,272 Non-regulated expenses — (22,122 ) (665 ) — (22,787 ) Other components of net periodic benefit cost — (8,886 ) (422 ) — (9,308 ) Allowance for equity funds used during construction — 3,954 — — 3,954 Gain on sale of non-utility properties — 50 — — 50 Income tax (expense) benefit on other income and expenses (652 ) 2,616 (63 ) 816 2,717 Net other income (loss) 1,681 (6,730 ) 47 (2,100 ) (7,102 ) Interest: Interest expense 1,711 38,288 2,251 (2,333 ) 39,917 Allowance for borrowed funds used during construction — (1,909 ) (154 ) — (2,063 ) Net interest expense 1,711 36,379 2,097 (2,333 ) 37,854 Equity earnings of subsidiaries 64,748 — — (64,748 ) — Net income $ 65,584 $ 61,905 $ 2,863 $ (64,768 ) $ 65,584 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended December 31, 2017 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating revenue $ — $ 635,604 $ 40,509 $ — $ 676,113 Operating expenses: Operations: Purchased water — 198,682 399 — 199,081 Purchased power — 21,021 7,841 — 28,862 Pump taxes — 13,924 — — 13,924 Administrative and general — 83,163 10,163 — 93,326 Other operations — 67,069 7,903 (524 ) 74,448 Maintenance — 21,595 935 — 22,530 Depreciation and amortization 94 72,327 4,453 (91 ) 76,783 Income tax (benefit) expense (498 ) 33,313 1,405 1,059 35,279 Property and other taxes (4 ) 21,778 3,023 — 24,797 Total operating (income) expenses (408 ) 532,872 36,122 444 569,030 Net operating income 408 102,732 4,387 (444 ) 107,083 Other Income and Expenses: Non-regulated revenue 1,985 14,608 1,814 (2,509 ) 15,898 Non-regulated expenses — (8,139 ) (1,251 ) — (9,390 ) Other components of net periodic benefit cost — (9,032 ) (556 ) — (9,588 ) Allowance for equity funds used during construction — 3,750 — — 3,750 Gain on sale of non-utility properties — 663 — — 663 Income tax expense on other income and expenses (809 ) (1,714 ) (47 ) 1,022 (1,548 ) Net other income (loss) 1,176 136 (40 ) (1,487 ) (215 ) Interest: Interest expense 1,131 35,116 2,026 (1,985 ) 36,288 Allowance for borrowed funds used during construction — (2,319 ) (41 ) — (2,360 ) Net interest expense 1,131 32,797 1,985 (1,985 ) 33,928 Equity earnings of subsidiaries 72,487 — — (72,487 ) — Net income $ 72,940 $ 70,071 $ 2,362 $ (72,433 ) $ 72,940 |
Schedule of Condensed Consolidating Statement of Cash Flows | CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2019 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating activities: Net income $ 63,116 $ 58,447 $ 4,238 $ (62,685 ) $ 63,116 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (62,745 ) — — 62,745 — Dividends received from Affiliates 38,023 — — (38,023 ) — Depreciation and amortization 94 85,175 6,101 (82 ) 91,288 Change in value of life insurance contract — (5,104 ) — — (5,104 ) Stock-based compensation — — 6,731 — 6,731 Gain on sale of non-utility properties — (28 ) — — (28 ) Changes in normalized deferred income taxes — 15,346 — — 15,346 Allowance for equity funds used during construction — (6,685 ) — — (6,685 ) Changes in operating assets and liabilities 321 1,883 220 — 2,424 Other changes in noncurrent assets and liabilities 6,632 (308 ) (4,640 ) 22 1,706 Net cash provided by operating activities 45,441 148,726 12,650 (38,023 ) 168,794 Investing activities: Utility plant expenditures — (262,500 ) (11,270 ) — (273,770 ) Proceeds from sale of non-utility assets — 28 — — 28 Investment in affiliates (19,294 ) — — 19,294 — Change in affiliate advances (4,379 ) 453 (174 ) 4,100 — Issuance of affiliate short-term borrowings (4,300 ) — — 4,300 — Collection of affiliate long-term debt 1,963 — — (1,963 ) — Purchase of life insurance — (2,216 ) — — (2,216 ) Net cash used in investing activities (26,010 ) (264,235 ) (11,444 ) 25,731 (275,958 ) Financing Activities: Short-term borrowings — 260,000 — — 260,000 Repayment of short-term borrowings — (150,000 ) — — (150,000 ) Investment from affiliates — 19,294 — (19,294 ) — Change in affiliate advances (17 ) 5,627 (1,510 ) (4,100 ) — Proceeds from affiliate short-term borrowings — — 4,300 (4,300 ) Repayment of affiliates long-term debt — — (1,963 ) 1,963 — Issuance of long-term debt, net of debt issuance costs — 398,204 — — 398,204 Retirement of long-term debt — (405,317 ) (251 ) — (405,568 ) Advances and contribution in aid of construction — 27,005 769 — 27,774 Refunds of advances for construction — (7,565 ) (1 ) — (7,566 ) Issuance of common stock 20,423 — — — 20,423 Repurchase of common stock (2,497 ) — — — (2,497 ) Dividends paid to non-affiliates (38,023 ) — — — (38,023 ) Dividends paid to affiliates — (36,297 ) (1,726 ) 38,023 — Net cash (used in) provided by financing activities (20,114 ) 110,951 (382 ) 12,292 102,747 Change in cash, cash equivalents, and restricted cash (683 ) (4,558 ) 824 — (4,417 ) Cash, cash equivalents, and restricted cash at beginning of period 3,779 34,239 9,697 — 47,715 Cash, cash equivalents, and restricted cash at end of year $ 3,096 $ 29,681 $ 10,521 $ — $ 43,298 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2018 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating activities: Net income $ 65,584 $ 61,905 $ 2,863 $ (64,768 ) $ 65,584 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (64,748 ) — — 64,748 — Dividends received from Affiliates 36,043 — — (36,043 ) — Depreciation and amortization 94 80,442 5,258 (87 ) 85,707 Change in value of life insurance contract — 2,334 — — 2,334 Stock-based compensation 3,141 — — — 3,141 Gain on sale of non-utility properties — (50 ) — — (50 ) Changes in normalized deferred income taxes — 20,909 — — 20,909 Allowance for equity funds used during construction — (3,954 ) — — (3,954 ) Changes in operating assets and liabilities (290 ) 16,943 (170 ) — 16,483 Other changes in noncurrent assets and liabilities (348 ) (12,284 ) 1,390 107 (11,135 ) Net cash provided by operating activities 39,476 166,245 9,341 (36,043 ) 179,019 Investing activities: Utility plant expenditures — (261,456 ) (10,251 ) — (271,707 ) Proceeds from sale of non-utility assets — 59 — — 59 Change in affiliate advances (689 ) 19 53 617 — Issuance of affiliate short-term borrowings (23,700 ) — — 23,700 — Collection of affiliate short-term debt 20,000 — — (20,000 ) — Collection of affiliate long-term debt 1,635 — — (1,635 ) — Life insurance benefits — 3,491 — — 3,491 Purchase of life insurance — (4,925 ) — — (4,925 ) Net cash used in investing activities (2,754 ) (262,812 ) (10,198 ) 2,682 (273,082 ) Financing Activities: Short-term borrowings 20,000 131,000 — — 151,000 Repayment of short-term borrowings (20,000 ) (341,000 ) — — (361,000 ) Change in affiliate advances 17 (93 ) 693 (617 ) — Proceeds from affiliate short-term borrowings 20,000 — 3,700 (23,700 ) — Repayment of affiliates short-term debt (20,000 ) — — 20,000 — Repayment of affiliates long-term debt — — (1,635 ) 1,635 — Issuance of long-term debt, net of debt issuance costs — 299,383 — — 299,383 Retirement of long-term debt — (16,200 ) (332 ) — (16,532 ) Advances and contribution in aid of construction — 18,218 394 — 18,612 Refunds of advances for construction — (7,279 ) (18 ) — (7,297 ) Repurchase of common stock (1,645 ) — — — (1,645 ) Dividends paid to non-affiliates (36,043 ) — — — (36,043 ) Dividends paid to affiliates — (34,624 ) (1,419 ) 36,043 — Net cash (used in) provided by financing activities (37,671 ) 49,405 1,383 33,361 46,478 Change in cash, cash equivalents, and restricted cash (949 ) (47,162 ) 526 — (47,585 ) Cash, cash equivalents, and restricted cash at beginning of period 4,728 81,401 9,171 — 95,300 Cash, cash equivalents, and restricted cash at end of year $ 3,779 $ 34,239 $ 9,697 $ — $ 47,715 California Water Service Group CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2017 Parent Cal Water All Other Consolidating Consolidated (In thousands) Operating activities: Net income $ 72,940 $ 70,071 $ 2,362 $ (72,433 ) $ 72,940 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (72,487 ) — — 72,487 — Dividends received from Affiliates 34,563 — — (34,563 ) — Depreciation and amortization 94 74,041 4,548 (91 ) 78,592 Change in value of life insurance contract — (3,058 ) — — (3,058 ) Stock-based compensation 3,118 — — — 3,118 Gain on sale of non-utility properties — (663 ) — — (663 ) Changes in normalized deferred income taxes — 21,087 — — 21,087 Allowance for equity funds used during construction — (3,750 ) — — (3,750 ) Changes in operating assets and liabilities 184 (36,611 ) 38 — (36,389 ) Other changes in noncurrent assets and liabilities 254 13,101 2,573 37 15,965 Net cash provided by operating activities 38,666 134,218 9,521 (34,563 ) 147,842 Investing activities: Utility plant expenditures (4 ) (252,055 ) (7,135 ) — (259,194 ) TCP settlement proceeds — 56,004 — — 56,004 Proceeds from sale of non-utility assets — 666 — — 666 Change in affiliate advances 172 (485 ) (50 ) 363 — Issuance of affiliate short-term borrowings (2,610 ) — — 2,610 — Collection of affiliate long-term debt 1,356 — — (1,356 ) — Life insurance benefits — 1,558 — — 1,558 Purchase of life insurance — (5,605 ) — — (5,605 ) Net cash used in investing activities (1,086 ) (199,917 ) (7,185 ) 1,617 (206,571 ) Financing Activities: Short-term borrowings — 265,000 — — 265,000 Repayment of short-term borrowings (2,000 ) (85,000 ) — — (87,000 ) Change in affiliate advances — 41 322 (363 ) — Proceeds from affiliate short-term borrowings — — 2,610 (2,610 ) — Repayment of affiliates long-term debt — — (1,356 ) 1,356 — Retirement of long-term debt — (26,223 ) (606 ) — (26,829 ) Advances and contribution in aid of construction — 21,075 294 — 21,369 Refunds of advances for construction — (8,373 ) (5 ) — (8,378 ) Repurchase of common stock (1,505 ) — — — (1,505 ) Dividends paid to non-affiliates (34,563 ) — — — (34,563 ) Dividends paid to affiliates — (33,015 ) (1,548 ) 34,563 — Net cash (used in) provided by financing activities (38,068 ) 133,505 (289 ) 32,946 128,094 Change in cash, cash equivalents, and restricted cash (488 ) 67,806 2,047 — 69,365 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 year $ 4,728 $ 81,401 $ 9,171 $ — $ 95,300 |
ORGANIZATION AND OPERATIONS (De
ORGANIZATION AND OPERATIONS (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments (in segments) | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lessor, Lease, Description [Line Items] | ||
Operating Lease, Liability | $ 14,380 | |
Optional lease renewal term | 15 years | |
Asset retirement obligation | $ 25,600 | $ 24,300 |
Maximum collection period in which deferred net WRAM and MCBA revenues and associated costs will be recognized | 24 months | |
Minimum collection period after net receivable balances were recognized in which the Company defers net WRAM and MCBA operating revenues and associated costs | 12 months | |
Minimum | ||
Lessor, Lease, Description [Line Items] | ||
Term of contract | 5 years | |
Maximum | ||
Lessor, Lease, Description [Line Items] | ||
Term of contract | 10 years | |
Accounting Standards Update 2016-02 | ||
Lessor, Lease, Description [Line Items] | ||
Operating Lease, Liability | $ 13,800 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 664,358 | $ 674,736 | $ 622,474 |
Revenue not from contract with customer | 50,199 | 23,460 | 53,639 |
Total non-regulated revenue | 19,205 | 18,272 | 15,898 |
Residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 446,323 | 450,062 | 415,893 |
Business | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 129,223 | 130,041 | 118,279 |
Industrial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 31,857 | 34,236 | 28,905 |
Public authorities | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 33,862 | 34,511 | 31,671 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 23,093 | 25,886 | 27,726 |
Operating and maintenance revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 12,655 | 10,392 | 8,621 |
Other non-regulated revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 4,271 | 5,413 | 5,262 |
Non-regulated revenue from contracts with customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 16,926 | 15,805 | 13,883 |
Lease revenue | 2,279 | ||
Lease revenue | 2,467 | 2,015 | |
Total non-regulated revenue | $ 19,205 | $ 18,272 | $ 15,898 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) $ in Thousands | Dec. 31, 2019USD ($) |
Accounting Policies [Abstract] | |
2020 | $ 2,772 |
2021 | 2,012 |
2022 | 1,211 |
2023 | 725 |
2024 | 411 |
Thereafter | $ 585 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Activities in the allowance for doubtful accounts | |||
Accounts receivable from developers | $ 6,299 | $ 9,633 | |
Other | 7,888 | 7,468 | |
Total other receivables | 14,187 | 17,101 | |
Allowance for Doubtful Accounts | |||
Activities in the allowance for doubtful accounts | |||
Beginning Balance | 757 | 773 | $ 830 |
Provision for uncollectible accounts | 1,664 | 1,703 | 1,570 |
Net write off of uncollectible accounts | (1,650) | (1,719) | (1,627) |
Ending Balance | $ 771 | $ 757 | $ 773 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Depreciable plant and equipment | |||
Equipment | $ 3,235,415 | $ 2,950,424 | |
Transmission and distribution plant | $ 24,854 | $ 24,743 | |
Office Buildings and other structures, Useful Lives | 50 years | ||
Provision for depreciation expressed as a percentage of the aggregate depreciable asset balances | 2.96% | 3.02% | 3.00% |
Minimum | |||
Depreciable plant and equipment | |||
Equipment, Useful Lives | 5 years | ||
Transmission and distribution plant, Useful Lives | 40 years | ||
Maximum | |||
Depreciable plant and equipment | |||
Equipment, Useful Lives | 50 years | ||
Transmission and distribution plant, Useful Lives | 65 years | ||
Utility Plant | |||
Depreciable plant and equipment | |||
Equipment | $ 726,475 | $ 643,581 | |
Office buildings and other structures | 281,462 | 267,948 | |
Transmission and distribution plant | 2,227,478 | 2,038,895 | |
Total | $ 3,235,415 | $ 2,950,424 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Allowance for equity funds used during construction | $ 6,685 | $ 3,954 | $ 3,750 |
Allowance for borrowed funds used during construction | 3,670 | 2,063 | 2,360 |
Total | $ 10,355 | $ 6,017 | $ 6,110 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||||
Proceeds collected through a surcharge on certain customers' bills | $ 600 | $ 500 | ||
Cash and cash equivalents | 42,653 | 47,176 | ||
Restricted cash (included in taxes, prepaid expenses, and other assets) | 645 | 539 | ||
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | $ 43,298 | $ 47,715 | $ 95,300 | $ 25,935 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 7) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Regulatory Assets and Liabilities | |||
Regulatory Assets | $ 433,322 | $ 353,569 | |
Regulatory Liabilities | 211,413 | 211,275 | |
Short-term portion of the regulatory assets | 38,225 | 42,394 | |
Short-term portion of the regulatory liabilities | 4,462 | 12,213 | |
Long-Term Debt Premium, Discount and Expense | |||
Amortization of debt premium and expenses | 744 | 1,099 | $ 920 |
Advances for Construction | |||
Advances for construction | $ 191,062 | 186,342 | |
Refund period | 40 years | ||
2020 | $ 7,628 | ||
2021 | 7,627 | ||
2022 | 7,627 | ||
2023 | 7,627 | ||
2024 | 7,627 | ||
Thereafter | 152,926 | ||
Total refunds | 191,062 | ||
Future tax benefits due to customers | |||
Regulatory Assets and Liabilities | |||
Regulatory Liabilities | 194,501 | 180,205 | |
Health cost balancing account | |||
Regulatory Assets and Liabilities | |||
Regulatory Liabilities | 4,271 | 3,516 | |
Conservation program | |||
Regulatory Assets and Liabilities | |||
Regulatory Liabilities | 2,742 | 6,880 | |
Net WRAM and MCBA long-term payable | |||
Regulatory Assets and Liabilities | |||
Regulatory Liabilities | 211 | 222 | |
Tax accounting memorandum account | |||
Regulatory Assets and Liabilities | |||
Regulatory Liabilities | 806 | 5,039 | |
Cost of capital memorandum account | |||
Regulatory Assets and Liabilities | |||
Regulatory Liabilities | 151 | 2,834 | |
1,2,3 trichloropropane settlement proceeds | |||
Regulatory Assets and Liabilities | |||
Regulatory Liabilities | 8,426 | 12,142 | |
Other regulatory liabilities | |||
Regulatory Assets and Liabilities | |||
Regulatory Liabilities | 305 | 437 | |
Pension and retiree group health | |||
Regulatory Assets and Liabilities | |||
Regulatory Assets | 208,321 | 156,947 | |
Property-related temporary differences (tax benefits flowed through to customers) | |||
Regulatory Assets and Liabilities | |||
Regulatory Assets | 104,931 | 99,376 | |
Other accrued benefits | |||
Regulatory Assets and Liabilities | |||
Regulatory Assets | 20,030 | 20,588 | |
Net WRAM and MCBA long-term accounts receivable | |||
Regulatory Assets and Liabilities | |||
Regulatory Assets | 25,465 | 17,134 | |
Asset retirement obligations, net | |||
Regulatory Assets and Liabilities | |||
Regulatory Assets | $ 19,567 | 18,197 | |
Interim rates long-term accounts receivable | |||
Regulatory Assets and Liabilities | |||
Recovery Period | 1 year | ||
Regulatory Assets | $ 4,642 | 4,642 | |
Tank coating | |||
Regulatory Assets and Liabilities | |||
Recovery Period | 10 years | ||
Regulatory Assets | $ 13,535 | 11,196 | |
Recoverable property losses | |||
Regulatory Assets and Liabilities | |||
Recovery Period | 10 years | ||
Regulatory Assets | $ 5,000 | 1,275 | |
Pension cost balancing account | |||
Regulatory Assets and Liabilities | |||
Recovery Period | 1 year | ||
Regulatory Assets | $ 21,465 | 16,494 | |
Other components of net periodic benefit cost | |||
Regulatory Assets and Liabilities | |||
Regulatory Assets | 5,145 | 3,221 | |
Other regulatory assets | |||
Regulatory Assets and Liabilities | |||
Regulatory Assets | $ 5,221 | $ 4,499 | |
Minimum | Net WRAM and MCBA long-term accounts receivable | |||
Regulatory Assets and Liabilities | |||
Recovery Period | 1 year | ||
Maximum | Net WRAM and MCBA long-term accounts receivable | |||
Regulatory Assets and Liabilities | |||
Recovery Period | 2 years |
(Details 8)
(Details 8) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||||||||||
Net income (loss) | $ 63,116 | $ 65,584 | $ 72,940 | ||||||||
Weighted average common shares, basic (in shares) | 48,168 | 48,060 | 48,009 | ||||||||
Weighted average common shares, dilutive (in shares) | 48,168 | 48,060 | 48,009 | ||||||||
Earnings per share—basic (in dollars per share) | $ 1.31 | $ 1.36 | $ 1.52 | ||||||||
Earnings per share—diluted (in dollars per share) | $ 0.24 | $ 0.88 | $ 0.35 | $ (0.16) | $ 0.32 | $ 0.75 | $ 0.31 | $ (0.02) | $ 1.31 | $ 1.36 | $ 1.52 |
OTHER INCOME AND EXPENSES (Deta
OTHER INCOME AND EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other income and expenses | |||
Revenue | $ 19,205 | $ 18,272 | $ 15,898 |
Expense | 13,869 | 22,787 | 9,390 |
New development expense | 5,400 | ||
Operating and maintenance revenue | |||
Other income and expenses | |||
Revenue | 12,655 | 10,392 | 8,621 |
Expense | 13,791 | 11,895 | 8,847 |
Leases | |||
Other income and expenses | |||
Revenue | 2,279 | 2,467 | 2,015 |
Expense | 35 | 135 | 182 |
Design and construction | |||
Other income and expenses | |||
Revenue | 1,745 | 1,273 | 1,918 |
Expense | 1,612 | 1,202 | 1,635 |
Meter reading and billing | |||
Other income and expenses | |||
Revenue | 412 | 391 | 256 |
Expense | 163 | 157 | (6) |
Interest income | |||
Other income and expenses | |||
Revenue | 92 | 133 | 68 |
Expense | 0 | 0 | 0 |
Change in value of life insurance contracts (gain) loss | |||
Other income and expenses | |||
Revenue | 0 | 0 | 0 |
Expense | (5,104) | 2,340 | (3,057) |
Other non-regulated income and expenses | |||
Other income and expenses | |||
Revenue | 2,022 | 3,616 | 3,020 |
Expense | $ 3,372 | $ 7,058 | $ 1,789 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amortized intangible assets: | |||
Gross Carrying Value | $ 21,079 | $ 20,967 | |
Accumulated Amortization | 13,955 | 12,893 | |
Total | 7,124 | 8,074 | |
Unamortized intangible assets: | |||
Perpetual water rights and other | 3,776 | 3,776 | |
Amortization of intangible assets | 1,500 | 1,700 | $ 1,600 |
Estimated future amortization expense related to intangible assets for the succeeding five years | |||
2020 | 958 | ||
2021 | 870 | ||
2022 | 747 | ||
2023 | 569 | ||
2024 | 446 | ||
Thereafter | 3,534 | ||
Total | 7,124 | 8,074 | |
Water pumping rights | |||
Amortized intangible assets: | |||
Gross Carrying Value | 1,084 | 1,084 | |
Accumulated Amortization | 116 | 112 | |
Total | 968 | 972 | |
Estimated future amortization expense related to intangible assets for the succeeding five years | |||
Total | $ 968 | 972 | |
Water planning studies | |||
Amortized intangible assets: | |||
Weighted Average Amortization Period (years) | 13 years | ||
Gross Carrying Value | $ 18,476 | 18,364 | |
Accumulated Amortization | 12,950 | 11,899 | |
Total | 5,526 | 6,465 | |
Estimated future amortization expense related to intangible assets for the succeeding five years | |||
Total | $ 5,526 | 6,465 | |
Leasehold improvements and other | |||
Amortized intangible assets: | |||
Weighted Average Amortization Period (years) | 17 years | ||
Gross Carrying Value | $ 1,519 | 1,519 | |
Accumulated Amortization | 889 | 882 | |
Total | 630 | 637 | |
Estimated future amortization expense related to intangible assets for the succeeding five years | |||
Total | $ 630 | $ 637 |
PREFERRED STOCK (Details)
PREFERRED STOCK (Details) | Feb. 27, 2019shares |
Equity [Abstract] | |
Preferred stock, shares, retired (in shares) | 221,000 |
COMMON STOCKHOLDERS' EQUITY (De
COMMON STOCKHOLDERS' EQUITY (Details) - USD ($) | Oct. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, shares issued (in shares) | 48,532,199 | 48,064,707 | ||
Issuance of common stock, related expenses | $ 6,500,000 | $ 3,100,000 | ||
Equity distribution period | 3 years | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, shares issued (in shares) | 35,281 | |||
Percent of market value discount | 90.00% | |||
Maximum payroll deduction | 10.00% | |||
Maximum number of shares per employee (in shares) | 2,000 | |||
Maximum value of shares per employee | $ 25,000 | |||
Issuance of common stock, related expenses | $ 200,000 | |||
Equity Distribution Agreement | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, shares, sold (in shares) | 381,105 | |||
Proceeds from sale of common stock | $ 19,300,000 | |||
Payments for commissions | 200,000 | |||
Equity issuance costs | $ 500,000 | |||
Maximum | Equity Distribution Agreement | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Sale of common stock, gross sales price | $ 300,000,000 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) - USD ($) $ in Millions | Mar. 29, 2019 | Oct. 04, 2011 | Dec. 31, 2019 | Dec. 31, 2018 |
Revolving Credit Facility | ||||
Short-term borrowings | ||||
Maximum borrowing capacity | $ 550 | |||
Debt maturity period | 5 years | |||
Line of credit facility, interest rate during period (as a percent) | 3.23% | 2.91% | ||
Revolving Credit Facility | Minimum | ||||
Short-term borrowings | ||||
Debt maturity period | 1 month | |||
Revolving Credit Facility | Maximum | ||||
Short-term borrowings | ||||
Debt maturity period | 6 months | |||
Revolving Credit Facility | Eurodollar | Minimum | ||||
Short-term borrowings | ||||
Interest rate margin (as a percent) | 0.65% | |||
Revolving Credit Facility | Eurodollar | Maximum | ||||
Short-term borrowings | ||||
Interest rate margin (as a percent) | 0.875% | |||
Parent Company | ||||
Short-term borrowings | ||||
Amount outstanding under line of credit | $ 55.1 | $ 55.1 | ||
Parent Company | Revolving Credit Facility | ||||
Short-term borrowings | ||||
Maximum borrowing capacity | $ 150 | |||
Line of Credit Facility, Incremental Expansion of Borrowing Capacity | 50 | |||
Cal Water | ||||
Short-term borrowings | ||||
Debt maturity period | 15 years | |||
Amount outstanding under line of credit | $ 120 | $ 10 | ||
Cal Water | Revolving Credit Facility | ||||
Short-term borrowings | ||||
Maximum borrowing capacity | $ 400 | |||
Debt maturity period | 24 months | |||
Line of Credit Facility, Incremental Expansion of Borrowing Capacity | $ 150 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | Jun. 11, 2019 | Sep. 13, 2018 | Oct. 04, 2011 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 17, 2010 |
Long-term debt | ||||||
Unamortized debt issuance costs | $ (4,693,000) | $ (3,762,000) | ||||
Total long-term debt | 808,622,000 | 814,938,000 | ||||
Current maturities of long-term debt, net | 21,868,000 | 104,911,000 | ||||
Long-term debt, net | 786,754,000 | 710,027,000 | ||||
Cal Water | ||||||
Long-term debt | ||||||
Debt maturity period | 15 years | |||||
Capital lease liability | 5,200,000 | 5,800,000 | ||||
Mortgages [Member] | Cal Water | ||||||
Long-term debt | ||||||
Debt issued | $ 400,000,000 | |||||
Mortgages [Member] | Series UUU | Cal Water | ||||||
Long-term debt | ||||||
Repayment of debt | $ 300,000,000 | |||||
Mortgages [Member] | Series VVV | Cal Water | ||||||
Long-term debt | ||||||
Interest rate | 3.40% | |||||
Debt issued | $ 100,000,000 | |||||
Mortgages [Member] | Series WWW | Cal Water | ||||||
Long-term debt | ||||||
Interest rate | 4.07% | |||||
Debt issued | $ 100,000,000 | |||||
Mortgages [Member] | Series YYY | Cal Water | ||||||
Long-term debt | ||||||
Interest rate | 4.17% | |||||
Debt issued | $ 200,000,000 | |||||
First Mortgage | ||||||
Long-term debt | ||||||
Long-term debt | $ 801,246,000 | 805,892,000 | ||||
First Mortgage Bonds YYY Series Due 2059 | ||||||
Long-term debt | ||||||
Interest rate | 4.17% | |||||
Long-term debt | $ 200,000,000 | 0 | ||||
First Mortgage Bonds WWW Series Due 2049 | ||||||
Long-term debt | ||||||
Interest rate | 4.07% | |||||
Long-term debt | $ 100,000,000 | 0 | ||||
First Mortgage Bonds VVV Series Due 2029 | ||||||
Long-term debt | ||||||
Interest rate | 3.40% | |||||
Long-term debt | $ 100,000,000 | 0 | ||||
First Mortgage Bonds TTT Series Due 2056 | ||||||
Long-term debt | ||||||
Interest rate | 4.61% | |||||
Long-term debt | $ 10,000,000 | 10,000,000 | ||||
First Mortgage Bonds SSS Series Due 2046 | ||||||
Long-term debt | ||||||
Interest rate | 4.41% | |||||
Long-term debt | $ 40,000,000 | 40,000,000 | ||||
First Mortgage Bonds QQQ Series Due 2025 | ||||||
Long-term debt | ||||||
Interest rate | 3.33% | |||||
Long-term debt | $ 50,000,000 | 50,000,000 | ||||
First Mortgage Bonds RRR Series Due 2045 | ||||||
Long-term debt | ||||||
Interest rate | 4.31% | |||||
Long-term debt | $ 50,000,000 | 50,000,000 | ||||
First Mortgage Bonds PPP Series, due 2040 | ||||||
Long-term debt | ||||||
Interest rate | 5.50% | |||||
Long-term debt | $ 100,000,000 | 100,000,000 | ||||
First Mortgage Bonds PPP Series, due 2040 | Cal Water | ||||||
Long-term debt | ||||||
Interest rate | 5.50% | |||||
Debt issued | $ 100,000,000 | |||||
First Mortgage Bonds LL Series, due 2019 | ||||||
Long-term debt | ||||||
Interest rate | 5.875% | |||||
Long-term debt | $ 0 | 100,000,000 | ||||
First Mortgage Bonds LL Series, due 2019 | Cal Water | ||||||
Long-term debt | ||||||
Repayments of Debt | 100,000,000 | |||||
First Mortgage Bonds UUU Series, due 2020 | ||||||
Long-term debt | ||||||
Long-term debt | $ 0 | 300,000,000 | ||||
First Mortgage Bonds AAA Series, due in 2025 | ||||||
Long-term debt | ||||||
Interest rate | 7.28% | |||||
Long-term debt | $ 20,000,000 | 20,000,000 | ||||
First Mortgage Bonds BBB Series, due in 2028 | ||||||
Long-term debt | ||||||
Interest rate | 6.77% | |||||
Long-term debt | $ 20,000,000 | 20,000,000 | ||||
First Mortgage Bonds CCC Series, Due 2030 | ||||||
Long-term debt | ||||||
Interest rate | 8.15% | |||||
Long-term debt | $ 20,000,000 | 20,000,000 | ||||
First Mortgage Bonds DDD Series, Due 2031 | ||||||
Long-term debt | ||||||
Interest rate | 7.13% | |||||
Long-term debt | $ 20,000,000 | 20,000,000 | ||||
First Mortgage Bonds EEE Series, Due 2032 | ||||||
Long-term debt | ||||||
Interest rate | 7.11% | |||||
Long-term debt | $ 20,000,000 | 20,000,000 | ||||
First Mortgage Bonds GGG Series, Due 2022 | ||||||
Long-term debt | ||||||
Interest rate | 5.29% | |||||
Long-term debt | $ 5,455,000 | 7,273,000 | ||||
First Mortgage Bonds HHH Series, Due 2022 | ||||||
Long-term debt | ||||||
Interest rate | 5.29% | |||||
Long-term debt | $ 5,455,000 | 7,273,000 | ||||
First Mortgage Bonds III Series, Due 2023 | ||||||
Long-term debt | ||||||
Interest rate | 5.54% | |||||
Long-term debt | $ 3,636,000 | 4,546,000 | ||||
First Mortgage Bonds OOO Series, Due 2031 | ||||||
Long-term debt | ||||||
Interest rate | 6.02% | |||||
Long-term debt | $ 20,000,000 | 20,000,000 | ||||
First Mortgage Bonds CC Series, Due 2020 | ||||||
Long-term debt | ||||||
Interest rate | 9.86% | |||||
Long-term debt | $ 16,700,000 | 16,800,000 | ||||
Secured Debt | First Mortgage Bonds due 2020 | ||||||
Long-term debt | ||||||
Debt issued | $ 300,000,000 | |||||
Secured Debt | LIBOR | First Mortgage Bonds due 2020 | ||||||
Long-term debt | ||||||
Interest rate margin (as a percent) | 0.70% | |||||
California Department of Water Resources Loans | ||||||
Long-term debt | ||||||
Long-term debt | $ 5,604,000 | 5,830,000 | ||||
California Department of Water Resources Loans | Minimum | ||||||
Long-term debt | ||||||
Interest rate | 3.00% | |||||
California Department of Water Resources Loans | Maximum | ||||||
Long-term debt | ||||||
Interest rate | 7.00% | |||||
Other Long-term Debt | ||||||
Long-term debt | ||||||
Long-term debt | $ 6,465,000 | $ 6,978,000 | ||||
First Mortgage Bond JJJ and LLL | Cal Water | ||||||
Long-term debt | ||||||
Repayment of debt | $ 10,900,000 |
OTHER ACCRUED LIABILITIES (Deta
OTHER ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Accrued and deferred compensation | $ 22,543 | $ 20,229 |
Accrued benefits and workers' compensation claims | 6,241 | 5,896 |
Unearned revenue and customer deposit | 2,024 | 1,915 |
Due to contracts and agencies | 3,325 | 3,196 |
Current portion of operating lease | 1,452 | |
Other | 2,988 | 2,270 |
Total other accrued liabilities | $ 38,573 | $ 33,506 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Federal | |||
Current | $ 0 | $ 0 | $ 0 |
Deferred | 15,582 | 15,995 | 35,881 |
Total | 15,582 | 15,995 | 35,881 |
State | |||
Current | 3 | 3 | 3 |
Deferred | 2,086 | (126) | 943 |
Total | 2,089 | (123) | 946 |
Total | |||
Current | 3 | 3 | 3 |
Deferred | 17,668 | 15,869 | 36,824 |
Total income tax | $ 17,671 | $ 15,872 | $ 36,827 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income taxes | ||||
Income tax deductions | $ 70,000,000 | $ 102,000,000 | $ 85,900,000 | |
Valuation allowance | 0 | |||
Provisional estimate | $ 108,000,000 | |||
TCJA refund | 121,000,000 | |||
TCJA gross up | 47,000,000 | |||
TCJA regulatory liabilities | 168,000,000 | |||
Unrecognized tax benefits that would impact effective tax rate | 3,100,000 | |||
Reconciliation of the income tax expense computed by applying the current federal tax rate to pretax book income and the amount shown in the Consolidated Statements of Income | ||||
Statutory income tax | 16,965,000 | 17,105,000 | 38,419,000 | |
Increase (reduction) in taxes due to: | ||||
State income taxes net of federal tax benefit | 5,639,000 | 5,685,000 | 6,017,000 | |
Effect of regulatory treatment of fixed asset differences | (3,696,000) | (5,954,000) | (4,584,000) | |
Investment tax credits | (74,000) | (74,000) | (74,000) | |
AFUDC equity | (1,870,000) | (1,106,000) | (1,528,000) | |
Share base stock compensation | 302,000 | (278,000) | (581,000) | |
Other | 405,000 | 494,000 | (842,000) | |
Total income tax | 17,671,000 | $ 15,872,000 | $ 36,827,000 | |
State | ||||
Income taxes | ||||
Net operating loss resulting from repairs and maintenance deductions | 95,200,000 | |||
State tax credits | 4,200,000 | |||
Estimated carried-forward portion of tax credits | 2,200,000 | |||
Federal | ||||
Income taxes | ||||
Net operating loss resulting from repairs and maintenance deductions | $ 57,300,000 |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred tax assets: | |||
Developer deposits for extension agreements and contributions in aid of construction | $ 25,114 | $ 39,074 | |
Net operating loss carryforward and tax credits | 11,029 | 8,257 | |
Pension liability | 10,095 | 8,725 | |
Income tax regulatory liability | 47,196 | 44,072 | |
Operating leases liabilities | 4,024 | ||
Other | 2,975 | 4,273 | |
Total deferred tax assets | 100,433 | 104,401 | |
Deferred tax liabilities: | |||
Property related basis and depreciation differences | 297,470 | 288,544 | |
WRAM/MCBA and interim rates balancing accounts | 17,771 | 26,348 | |
Operating lease-right to use asset | 4,030 | ||
Operating lease-right to use asset | 14,402 | ||
Other | 3,752 | 2,542 | |
Total deferred tax liabilities | 323,023 | 317,434 | |
Net deferred tax liabilities | 222,590 | 213,033 | |
Reconciliation of the changes in unrecognized tax benefits | |||
Balance at beginning of year | 9,716 | 11,058 | $ 10,499 |
Additions for tax positions taken during current year | 1,292 | ||
Additions for tax positions taken during current year | 1,787 | 559 | |
Reduction to prior year tax position | 0 | (3,129) | 0 |
Balance at end of year | $ 11,008 | $ 9,716 | $ 11,058 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Savings Plan | |||
Maximum participants' contribution as a percentage of pre-tax compensation | 20.00% | ||
Employer's matching contribution for each dollar contributed by the employee | $ 0.75 | ||
Maximum employer contribution as a percentage of base salary | 6.00% | ||
Company contributions | $ 6,500,000 | $ 6,000,000 | $ 5,600,000 |
Pension and SERP | |||
Expected future benefit payments | |||
2020 | 15,851,000 | ||
2021 | 17,528,000 | ||
2022 | 19,328,000 | ||
2023 | 21,165,000 | ||
2024 | 22,932,000 | ||
2025-2029 | 143,248,000 | ||
Total payments | 240,052,000 | ||
Pension plans | |||
Employee benefit plans | |||
Accumulated benefit obligations | 615,500,000 | 492,400,000 | |
Fair value of pension plan assets | 573,575,000 | 469,774,000 | 460,878,000 |
Net periodic benefit cost | 34,374,000 | 41,552,000 | 35,900,000 |
Expected future benefit payments | |||
2020 | 13,765,000 | ||
2021 | 15,332,000 | ||
2022 | 16,992,000 | ||
2023 | 18,749,000 | ||
2024 | 20,517,000 | ||
2025-2029 | 130,341,000 | ||
Total payments | 215,696,000 | ||
SERP | |||
Employee benefit plans | |||
Accumulated benefit obligations | 71,800,000 | 56,800,000 | |
Expected future benefit payments | |||
2020 | 2,086,000 | ||
2021 | 2,196,000 | ||
2022 | 2,336,000 | ||
2023 | 2,416,000 | ||
2024 | 2,415,000 | ||
2025-2029 | 12,907,000 | ||
Total payments | 24,356,000 | ||
Other benefits | |||
Employee benefit plans | |||
Fair value of pension plan assets | $ 128,554,000 | 102,625,000 | 100,563,000 |
Threshold retirement age for participation in plan on payment of a premium | 58 years | ||
Life insurance benefit | $ 10,000 | ||
Net periodic benefit cost | 7,880,000 | $ 8,832,000 | $ 8,451,000 |
Regulatory asset related to underfunded postretirement benefit expense | 2,100,000 | ||
Expected Benefit Payments Net of Medicare Part D Subsidy | |||
2020 | 3,305,000 | ||
2021 | 3,645,000 | ||
2022 | 4,011,000 | ||
2023 | 4,417,000 | ||
2024 | 4,864,000 | ||
2025-2029 | 29,403,000 | ||
Total payments | 49,645,000 | ||
Effect of Medicare Part D Subsidy on Expected Benefit Payments | |||
2020 | (267,000) | ||
2021 | (301,000) | ||
2022 | (336,000) | ||
2023 | (371,000) | ||
2024 | (404,000) | ||
2025-2029 | (2,656,000) | ||
Total payments | (4,335,000) | ||
Expected future benefit payments | |||
2020 | 3,038,000 | ||
2021 | 3,344,000 | ||
2022 | 3,675,000 | ||
2023 | 4,046,000 | ||
2024 | 4,460,000 | ||
2025-2029 | 26,747,000 | ||
Total payments | $ 45,310,000 |
EMPLOYEE BENEFIT PLANS (Detai_2
EMPLOYEE BENEFIT PLANS (Details 2) | Dec. 31, 2019 |
S&P Index | |
Employee benefit plans | |
Performance benchmark of special index (as a percent) | 35.00% |
Russell 2000 Index | |
Employee benefit plans | |
Performance benchmark of special index (as a percent) | 15.00% |
MSCI EAFE Index | |
Employee benefit plans | |
Performance benchmark of special index (as a percent) | 10.00% |
Bloomberg Barclays U.S. Aggregate Bond Index | |
Employee benefit plans | |
Performance benchmark of special index (as a percent) | 40.00% |
EMPLOYEE BENEFIT PLANS (Detai_3
EMPLOYEE BENEFIT PLANS (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assumed health care cost trend rate | |||
Annual rate of increase in the per capita cost (as a percent) | 7.00% | ||
Decreased annual rate by 2018 (as a percent) | 5.30% | ||
Ultimate health care cost trend rate (as a percent) | 4.30% | ||
Period in which ultimate health care cost trend rate is expected to be reached | 50 years | ||
Assumed health care cost trend rates affect the amounts reported for the postretirement benefit plans | |||
Effect on total service and interest cost, increase | $ 3,610 | ||
Effect on total service and interest cost, decrease | (2,650) | ||
Effect on accumulated postretirement benefit obligations, increase | 33,945 | ||
Effect on accumulated postretirement benefit obligations, decrease | $ (25,757) | ||
Minimum | |||
Actuarial assumptions used in determining the benefit obligation for the benefit plans | |||
Percentage of expected results within which long-term rate of return falls | 25.00% | ||
Maximum | |||
Actuarial assumptions used in determining the benefit obligation for the benefit plans | |||
Percentage of expected results within which long-term rate of return falls | 75.00% | ||
Pension plans | |||
Change in projected benefit obligation: | |||
Balance at the beginning of the period | $ 639,921 | $ 671,334 | |
Service cost | 26,718 | 29,027 | $ 23,801 |
Interest cost | 26,966 | 23,994 | 23,256 |
Assumption change | 122,779 | (80,192) | |
Plan amendment | 0 | 0 | |
Experience loss (gain) | 10,451 | 8,523 | |
Benefits paid, net of retiree premiums | (14,806) | (12,765) | |
Balance at the end of the period | 812,029 | 639,921 | 671,334 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 469,774 | 460,878 | |
Actual return on plan assets | 97,811 | (22,576) | |
Employer contributions | 20,796 | 44,237 | |
Retiree contributions and Medicare part D subsidies | 0 | 0 | |
Benefits paid | (14,806) | (12,765) | |
Fair value of plan assets at end of year | 573,575 | 469,774 | 460,878 |
Reconciliation of funded status | |||
Funded status | (238,454) | (170,147) | |
Unrecognized actuarial loss | 177,750 | 117,973 | |
Unrecognized prior service cost | 10,242 | 15,290 | |
Net amount recognized in the balance sheet | (50,462) | (36,884) | |
Short-term portion of the pension benefits | 2,100 | 1,900 | |
Amounts recognized in the consolidated balance sheets: | |||
Accrued benefit costs | 62 | 62 | |
Accrued benefit liability | (238,454) | (170,147) | |
Regulatory asset | 187,930 | 133,201 | |
Net amount recognized in the balance sheet | $ (50,462) | $ (36,884) | |
Actuarial assumptions used in determining the benefit obligation for the benefit plans | |||
Discount rate (as a percent) | 3.20% | 4.20% | |
Long-term rate of return on assets (as a percent) | 6.25% | 6.50% | |
Rate of compensation increase (as a percent) | 3.25% | 3.25% | |
Cost of living adjustment (as a percent) | 2.50% | 2.50% | |
Average return for last five years (as a percent) | 7.60% | ||
Components of the pension plans and other postretirement benefits | |||
Service cost | $ 26,718 | $ 29,027 | 23,801 |
Interest cost | 26,966 | 23,994 | 23,256 |
Expected return on plan assets | (30,285) | (27,702) | (24,119) |
Net amortization and deferral | 10,975 | 16,233 | 12,962 |
Net periodic benefit cost | $ 34,374 | $ 41,552 | 35,900 |
Weighted average assumptions used to determine net periodic benefit costs | |||
Discount rate (as a percent) | 4.20% | 3.60% | |
Long-term rate of return on assets (as a percent) | 6.50% | 6.50% | |
Rate of compensation increase (as a percent) | 3.25% | 3.25% | |
Cost of living adjustment | 2.50% | 2.50% | |
Assumed health care cost trend rates affect the amounts reported for the postretirement benefit plans | |||
Estimated annual contributions in next fiscal year | $ 38,000 | ||
Other benefits | |||
Change in projected benefit obligation: | |||
Balance at the beginning of the period | 127,204 | $ 143,368 | |
Service cost | 7,475 | 8,317 | 7,152 |
Interest cost | 5,441 | 4,873 | 4,988 |
Assumption change | 13,695 | (21,672) | |
Plan amendment | 0 | 2,203 | |
Experience loss (gain) | (1,994) | (8,226) | |
Benefits paid, net of retiree premiums | (1,306) | (1,659) | |
Balance at the end of the period | 150,515 | 127,204 | 143,368 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 102,625 | 100,563 | |
Actual return on plan assets | 19,730 | (4,320) | |
Employer contributions | 7,505 | 8,041 | |
Retiree contributions and Medicare part D subsidies | 1,874 | 2,025 | |
Benefits paid | (3,180) | (3,684) | |
Fair value of plan assets at end of year | 128,554 | 102,625 | 100,563 |
Reconciliation of funded status | |||
Funded status | (21,961) | (24,579) | |
Unrecognized actuarial loss | 15,822 | 18,618 | |
Unrecognized prior service cost | 2,129 | 2,326 | |
Net amount recognized in the balance sheet | (4,010) | (3,635) | |
Amounts recognized in the consolidated balance sheets: | |||
Accrued benefit costs | (2,441) | (2,802) | |
Accrued benefit liability | (21,961) | (24,579) | |
Regulatory asset | 20,392 | 23,746 | |
Net amount recognized in the balance sheet | $ (4,010) | $ (3,635) | |
Actuarial assumptions used in determining the benefit obligation for the benefit plans | |||
Discount rate (as a percent) | 3.25% | 4.25% | |
Long-term rate of return on assets (as a percent) | 5.50% | 5.50% | |
Rate of compensation increase (as a percent) | 0.00% | 0.00% | |
Cost of living adjustment (as a percent) | 0.00% | 0.00% | |
Average return for last ten years (as a percent) | 8.60% | ||
Components of the pension plans and other postretirement benefits | |||
Service cost | $ 7,475 | $ 8,317 | 7,152 |
Interest cost | 5,441 | 4,873 | 4,988 |
Expected return on plan assets | (5,794) | (5,639) | (4,875) |
Net amortization and deferral | 758 | 1,281 | 1,186 |
Net periodic benefit cost | $ 7,880 | $ 8,832 | $ 8,451 |
Weighted average assumptions used to determine net periodic benefit costs | |||
Discount rate (as a percent) | 4.25% | 3.65% | |
Long-term rate of return on assets (as a percent) | 5.50% | 5.50% | |
Rate of compensation increase (as a percent) | 0.00% | 0.00% | |
Assumed health care cost trend rates affect the amounts reported for the postretirement benefit plans | |||
Estimated annual contributions in next fiscal year | $ 7,500 | ||
SERP | Pension plans | |||
Actuarial assumptions used in determining the benefit obligation for the benefit plans | |||
Rate of compensation increase (as a percent) | 3.75% | 3.75% | |
Weighted average assumptions used to determine net periodic benefit costs | |||
Long-term rate of return on assets (as a percent) | 3.75% | 3.75% | |
SERP | Other benefits | |||
Actuarial assumptions used in determining the benefit obligation for the benefit plans | |||
Rate of compensation increase (as a percent) | 0.00% | 0.00% | |
Weighted average assumptions used to determine net periodic benefit costs | |||
Long-term rate of return on assets (as a percent) | 0.00% | 0.00% | |
Fixed Income | |||
Actuarial assumptions used in determining the benefit obligation for the benefit plans | |||
Long-term rate of return on assets (as a percent) | 3.97% | ||
Assumed percentage of portfolio investment | 40.00% | ||
Assumed long-term inflation rate (as a percent) | 2.50% | ||
Fixed Income | Minimum | |||
Target asset allocation percentages for major categories of the pension plan | |||
Maturity period | 1 year | ||
Fixed Income | Maximum | |||
Target asset allocation percentages for major categories of the pension plan | |||
Maturity period | 5 years | ||
Fixed Income | Pension plans | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 40.00% | ||
Fixed Income | Pension plans | Level 1 | Money Market Fund Investments | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | $ 5,000 | ||
Fair value of plan assets at end of year | $ 8,900 | $ 5,000 | |
Fixed Income | Pension plans | Minimum | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 35.00% | ||
Fixed Income | Pension plans | Maximum | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 45.00% | ||
Fixed Income | Other benefits | Level 1 | Money Market Fund Investments | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | $ 9,800 | ||
Fair value of plan assets at end of year | $ 4,500 | 9,800 | |
Equity Securities | |||
Actuarial assumptions used in determining the benefit obligation for the benefit plans | |||
Assumed percentage of portfolio investment | 60.00% | ||
Assumed long-term inflation rate (as a percent) | 2.50% | ||
Total Domestic Equity | Pension plans | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 50.00% | ||
Actuarial assumptions used in determining the benefit obligation for the benefit plans | |||
Long-term rate of return on assets (as a percent) | 7.25% | ||
Total Domestic Equity | Pension plans | Minimum | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 40.00% | ||
Total Domestic Equity | Pension plans | Maximum | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 60.00% | ||
Total Domestic Equity | Other benefits | |||
Actuarial assumptions used in determining the benefit obligation for the benefit plans | |||
Long-term rate of return on assets (as a percent) | 6.88% | ||
Domestic Equity: Small/Mid Cap Stocks | Pension plans | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 15.00% | ||
Domestic Equity: Small/Mid Cap Stocks | Pension plans | Minimum | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 10.00% | ||
Domestic Equity: Small/Mid Cap Stocks | Pension plans | Maximum | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 20.00% | ||
Domestic Equity: Large Cap Stocks | Pension plans | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 35.00% | ||
Domestic Equity: Large Cap Stocks | Pension plans | Minimum | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 30.00% | ||
Domestic Equity: Large Cap Stocks | Pension plans | Maximum | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 45.00% | ||
Non U.S. Equities | |||
Actuarial assumptions used in determining the benefit obligation for the benefit plans | |||
Long-term rate of return on assets (as a percent) | 8.56% | ||
Non U.S. Equities | Pension plans | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 10.00% | ||
Non U.S. Equities | Pension plans | Minimum | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 5.00% | ||
Non U.S. Equities | Pension plans | Maximum | |||
Target asset allocation percentages for major categories of the pension plan | |||
Target asset allocation percentages | 15.00% | ||
Short-term cash investments | |||
Actuarial assumptions used in determining the benefit obligation for the benefit plans | |||
Long-term rate of return on assets (as a percent) | 2.34% | ||
Fair Value, Recurring | Pension plans | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | $ 469,774 | ||
Fair value of plan assets at end of year | 573,575 | 469,774 | |
Fair Value, Recurring | Pension plans | Level 1 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 469,774 | ||
Fair value of plan assets at end of year | 318,988 | 469,774 | |
Fair Value, Recurring | Pension plans | Level 2 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Pension plans | Level 3 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Pension plans | Assets measured at net asset value (NAV) | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 254,587 | 0 | |
Fair Value, Recurring | Other benefits | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 102,625 | ||
Fair value of plan assets at end of year | 128,554 | 102,625 | |
Fair Value, Recurring | Other benefits | Level 1 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 102,625 | ||
Fair value of plan assets at end of year | 128,554 | 102,625 | |
Fair Value, Recurring | Other benefits | Level 2 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Other benefits | Level 3 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Other benefits | Assets measured at net asset value (NAV) | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Fixed Income | Pension plans | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 188,934 | ||
Fair value of plan assets at end of year | 91,231 | 188,934 | |
Fair Value, Recurring | Fixed Income | Pension plans | Level 1 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 188,934 | ||
Fair value of plan assets at end of year | 91,231 | 188,934 | |
Fair Value, Recurring | Fixed Income | Pension plans | Level 2 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Fixed Income | Pension plans | Level 3 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Fixed Income | Other benefits | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 45,446 | ||
Fair value of plan assets at end of year | 50,277 | 45,446 | |
Fair Value, Recurring | Fixed Income | Other benefits | Level 1 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 45,446 | ||
Fair value of plan assets at end of year | 50,277 | 45,446 | |
Fair Value, Recurring | Fixed Income | Other benefits | Level 2 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Fixed Income | Other benefits | Level 3 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Domestic Equity: Small/Mid Cap Stocks | Pension plans | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 68,843 | ||
Fair value of plan assets at end of year | 43,238 | 68,843 | |
Fair Value, Recurring | Domestic Equity: Small/Mid Cap Stocks | Pension plans | Level 1 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 68,843 | ||
Fair value of plan assets at end of year | 43,238 | 68,843 | |
Fair Value, Recurring | Domestic Equity: Small/Mid Cap Stocks | Pension plans | Level 2 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Domestic Equity: Small/Mid Cap Stocks | Pension plans | Level 3 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Domestic Equity: Small/Mid Cap Stocks | Other benefits | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Domestic Equity: Small/Mid Cap Stocks | Other benefits | Level 1 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Domestic Equity: Small/Mid Cap Stocks | Other benefits | Level 2 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Domestic Equity: Small/Mid Cap Stocks | Other benefits | Level 3 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Domestic Equity: Large Cap Stocks | Pension plans | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 165,862 | ||
Fair value of plan assets at end of year | 155,645 | 165,862 | |
Fair Value, Recurring | Domestic Equity: Large Cap Stocks | Pension plans | Level 1 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 165,862 | ||
Fair value of plan assets at end of year | 155,645 | 165,862 | |
Fair Value, Recurring | Domestic Equity: Large Cap Stocks | Pension plans | Level 2 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Domestic Equity: Large Cap Stocks | Pension plans | Level 3 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Domestic Equity: Large Cap Stocks | Other benefits | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 57,179 | ||
Fair value of plan assets at end of year | 78,277 | 57,179 | |
Fair Value, Recurring | Domestic Equity: Large Cap Stocks | Other benefits | Level 1 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 57,179 | ||
Fair value of plan assets at end of year | 78,277 | 57,179 | |
Fair Value, Recurring | Domestic Equity: Large Cap Stocks | Other benefits | Level 2 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Domestic Equity: Large Cap Stocks | Other benefits | Level 3 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Non U.S. Equities | Pension plans | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 46,135 | ||
Fair value of plan assets at end of year | 28,874 | 46,135 | |
Fair Value, Recurring | Non U.S. Equities | Pension plans | Level 1 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 46,135 | ||
Fair value of plan assets at end of year | 28,874 | 46,135 | |
Fair Value, Recurring | Non U.S. Equities | Pension plans | Level 2 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Non U.S. Equities | Pension plans | Level 3 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Non U.S. Equities | Other benefits | |||
Change in plan assets: | |||
Fair value of plan assets at end of year | 0 | ||
Fair Value, Recurring | Non U.S. Equities | Other benefits | Level 1 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Non U.S. Equities | Other benefits | Level 2 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Fair Value, Recurring | Non U.S. Equities | Other benefits | Level 3 | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | $ 0 | $ 0 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized to be issued under the plan (in shares) | 2,000,000 | |
Compensation expense | ||
Recorded compensation costs for the RSAs and RSUs | $ 6.5 | $ 3.1 |
Restricted Stock Awards (RSAs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 36,691 | 47,273 |
Canceled (in shares) | 17,134 | 19,742 |
Weighted average grant date fair value (in dollars per share) | $ 52.83 | $ 35.40 |
Restricted Stock Awards (RSAs) | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 12 months | |
Restricted Stock Awards (RSAs) | Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 36 months | |
Performance-Based Restricted Stock Unit Awards (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period of award | 3 years | |
Performance-Based Restricted Stock Unit Awards (RSUs) | Officer | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value (in dollars per share) | $ 52.83 | $ 35.40 |
Performance-Based Restricted Stock Unit Awards (RSUs) | Officer | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options vested on anniversary date (as a percent) | 0.00% | |
Performance-Based Restricted Stock Unit Awards (RSUs) | Officer | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options vested on anniversary date (as a percent) | 200.00% | |
Restricted Stock Unit Award (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 26,473 | 28,594 |
Canceled (in shares) | 31,177 | 24,009 |
Shares issued (in shares) | 62,726 | 48,753 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value of Financial Assets and Liabilities | ||
Risk premium percentage | 1.83% | |
Advances for construction | $ 191,062 | $ 186,342 |
Level 1 | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 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, net | 873,454 | 849,551 |
Advances for construction | 79,550 | 77,204 |
Total | 953,004 | 926,755 |
Level 3 | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 0 | 0 |
Advances for construction | 0 | 0 |
Total | 0 | 0 |
Total | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 873,454 | 849,551 |
Advances for construction | 79,550 | 77,204 |
Total | 953,004 | 926,755 |
Cost | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 808,622 | 814,938 |
Advances for construction | 191,062 | 186,342 |
Total | $ 999,684 | $ 1,001,280 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) | Dec. 20, 2017USD ($)well | Dec. 31, 2019USD ($)$ / acrefootentityacrefoot | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Long-term purchase commitments - other disclosures | ||||
Proceeds from legal settlements | $ 0 | $ 0 | $ 56,004,000 | |
Contingency loss recognized liability | 2,500,000 | |||
Santa Clara Valley Water District | ||||
Long-term purchase commitments - other disclosures | ||||
Annual cost | 13,600,000 | 9,700,000 | 9,100,000 | |
Stockton East Water District (SEWD) | ||||
Long-term purchase commitments - other disclosures | ||||
Annual cost | $ 13,300,000 | $ 13,700,000 | $ 14,100,000 | |
Kern County Water Agency (Agency) | ||||
Long-term purchase commitments - other disclosures | ||||
Minimum acre feet of treated water to be purchased per year over life of contract | acrefoot | 20,500 | |||
Minimum acre feet of treated water to be purchased under prior agreement | $ / acrefoot | 11,500 | |||
Number of other parties obligated to purchase treated water | entity | 3 | |||
Minimum acre feet of treated water to be purchased per year by other parties | acrefoot | 32,500 | |||
Total obligation of all parties, excluding the Company | $ 82,400,000 | |||
Total capital facilities charge and treated water charge obligation | 9,100,000 | |||
Total capital facilities charge and treated water charge obligation per acre foot | 442.88 | |||
Total treated water charge | 3,600,000 | |||
Portion of estimated operating cost per acre foot for treated water delivered | 22.05 | |||
California Water Service Company and City of Bakersfield v. The Dow Chemical Company, et al., Civil Case No. CIV-470999 (TCP Action) [Member] | ||||
Long-term purchase commitments - other disclosures | ||||
Amount awarded | $ 85,000,000 | |||
Proceeds from legal settlements | $ 56,000,000 | $ 47,600,000 | ||
Claims settled | well | 47 | |||
Total claims | well | 57 | |||
Release from future claims | well | 36 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Leases Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease renewal term | 25 years | ||
Finance lease renewal term | 25 years | ||
Rent expense | $ 2 | $ 2 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 1 year | ||
Finance lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 50 years | ||
Finance lease term | 50 years |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Water Supply Contracts (Details) - Water Contracts $ in Thousands | Dec. 31, 2019USD ($) |
Water Supply Contracts | |
2020 | $ 34,550 |
2021 | 34,550 |
2022 | 34,551 |
2023 | 34,551 |
2024 | 34,549 |
Thereafter | $ 604,342 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Supplemental Balance Sheet Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating leases | |
Other assets: Other | $ 14,402 |
Other accrued liabilities | 1,452 |
Other long-term liabilities | 12,928 |
Total | 14,380 |
Finance leases | |
Depreciable plant and equipment | 18,207 |
Accumulated depreciation and amortization | (9,644) |
Net utility plant | 8,563 |
Current maturities of long-term debt, net | 680 |
Long-term debt, net | 5,205 |
Total finance lease liabilities | $ 5,885 |
Weighted average remaining lease term | |
Operating leases | 152 months |
Finance leases | 76 months |
Weighted average discount rate | |
Operating leases | 3.70% |
Finance leases | 5.50% |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease cost | $ 1,874 |
Finance lease cost: | |
Amortization of right-of-use assets | 1,210 |
Interest on lease liabilities | 347 |
Total finance lease cost | 1,557 |
Short-term lease cost | 1,700 |
Variable lease cost | 264 |
Total Lease Cost | $ 5,395 |
COMMITMENTS AND CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 1,820 |
Operating cash flows from finance leases | 347 |
Financing cash flows from finance leases | 672 |
Non-cash activities: right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 2,109 |
Finance leases | $ 672 |
COMMITMENTS AND CONTINGENCIES_7
COMMITMENTS AND CONTINGENCIES - Maturities of Lease Liabilities and Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2020 | $ 1,951 | |
2021 | 1,734 | |
2022 | 1,578 | |
2023 | 1,459 | |
2024 | 1,318 | |
Thereafter | 10,205 | |
Total lease payments | 18,245 | |
Less imputed interest | (3,865) | |
Total | 14,380 | |
Finance Leases | ||
2020 | 986 | |
2021 | 987 | |
2022 | 987 | |
2023 | 1,506 | |
2024 | 940 | |
Thereafter | 1,645 | |
Total lease payments | 7,051 | |
Less imputed interest | (1,166) | |
Total | $ 5,885 | |
Previous Lease Accounting Standard, Minimum Lease Payments | ||
2019 | $ 1,771 | |
2020 | 1,709 | |
2021 | 1,485 | |
2022 | 1,355 | |
2023 | 1,261 | |
Thereafter | 10,538 | |
Total | $ 18,119 |
COMMITMENTS AND CONTINGENCIES_8
COMMITMENTS AND CONTINGENCIES - Contingencies (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Contingency loss recognized liability | $ 2.5 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Line Items] | |||||||||||
Operating revenue | $ 176,878 | $ 232,537 | $ 179,031 | $ 126,111 | $ 167,417 | $ 221,288 | $ 174,938 | $ 134,553 | $ 714,557 | $ 698,196 | $ 676,113 |
Net operating income | 20,356 | 51,567 | 27,013 | 476 | 26,536 | 47,329 | 26,839 | 9,836 | 99,412 | 110,540 | 107,083 |
Net income (loss) | $ 11,336 | $ 42,424 | $ 16,996 | $ (7,640) | $ 15,368 | $ 36,173 | $ 14,805 | $ (762) | $ 63,116 | $ 65,584 | $ 72,940 |
Diluted (loss) earnings per share (in dollars per share) | $ 0.24 | $ 0.88 | $ 0.35 | $ (0.16) | $ 0.32 | $ 0.75 | $ 0.31 | $ (0.02) | $ 1.31 | $ 1.36 | $ 1.52 |
Common stock market price range: | |||||||||||
Dividends paid per common share (in dollars per share) | 0.1975 | 0.1975 | 0.1975 | 0.1975 | 0.1875 | 0.1875 | 0.1875 | 0.1875 | 0.790 | 0.750 | $ 0.720 |
Maximum | |||||||||||
Common stock market price range: | |||||||||||
Common stock market price (in dollars per share) | 56.49 | 57.48 | 54.56 | 55.05 | 49.07 | 42.95 | 41.65 | 45.85 | 56.49 | 49.07 | |
Minimum | |||||||||||
Common stock market price range: | |||||||||||
Common stock market price (in dollars per share) | $ 48.78 | $ 49.52 | $ 48 | $ 44.60 | $ 40.10 | $ 38.85 | $ 35.60 | $ 35.25 | $ 48.78 | $ 40.10 |
CONDENSED CONSOLIDATING FINAN_3
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Narrative (Details) - First Mortgage Bonds, 5.500% due 2040 - USD ($) | Dec. 31, 2019 | Nov. 17, 2010 |
Long-term debt | ||
Interest rate | 5.50% | |
Cal Water | ||
Long-term debt | ||
Debt issued | $ 100,000,000 | |
Interest rate | 5.50% |
- Condensed Consolidating Balan
- Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Utility plant: | ||||
Utility plant | $ 3,550,485 | $ 3,229,446 | ||
Less accumulated depreciation and amortization | (1,144,115) | (996,723) | ||
Net utility plant | 2,406,370 | 2,232,723 | ||
Current assets: | ||||
Cash and cash equivalents | 42,653 | 47,176 | ||
Receivables and unbilled revenue | 119,349 | 122,959 | ||
Receivables from affiliates | 0 | 0 | ||
Other current assets | 22,710 | 18,567 | ||
Total current assets | 184,712 | 188,702 | ||
Other assets: | ||||
Regulatory assets | 433,322 | 353,569 | ||
Investments in affiliates | 0 | 0 | ||
Long-term affiliate notes receivable | 0 | 0 | ||
Other assets | 86,904 | 62,710 | ||
Total other assets | 520,226 | 416,279 | ||
TOTAL ASSETS | 3,111,308 | 2,837,704 | ||
Capitalization: | ||||
Common stockholders' equity | 779,906 | 730,157 | $ 699,221 | $ 659,471 |
Affiliate long-term debt | 0 | 0 | ||
Long-term debt, net | 786,754 | 710,027 | ||
Total capitalization | 1,566,660 | 1,440,184 | ||
Current liabilities: | ||||
Current maturities of long-term debt, net | 21,868 | 104,911 | ||
Short-term borrowings | 175,100 | 65,100 | ||
Payables to affiliates | 0 | 0 | ||
Accounts payable | 108,463 | 95,580 | ||
Accrued expenses and other liabilities | 53,290 | 55,575 | ||
Total current liabilities | 358,721 | 321,166 | ||
Unamortized investment tax credits | 1,575 | 1,649 | ||
Deferred income taxes | 222,590 | 213,033 | ||
Pension and postretirement benefits other than pensions | 258,907 | 193,538 | ||
Regulatory and other long-term liabilities | 270,256 | 256,522 | ||
Advances for construction | 191,062 | 186,342 | ||
Contributions in aid of construction | 241,537 | 225,270 | ||
TOTAL CAPITALIZATION AND LIABILITIES | 3,111,308 | 2,837,704 | ||
Consolidating Adjustments | ||||
Utility plant: | ||||
Utility plant | (7,197) | (7,197) | ||
Less accumulated depreciation and amortization | 2,180 | 2,097 | ||
Net utility plant | (5,017) | (5,100) | ||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables and unbilled revenue | 0 | 0 | ||
Receivables from affiliates | (29,633) | (25,453) | ||
Other current assets | 0 | 0 | ||
Total current assets | (29,633) | (25,453) | ||
Other assets: | ||||
Regulatory assets | 0 | 0 | ||
Investments in affiliates | (777,170) | (733,156) | ||
Long-term affiliate notes receivable | (30,060) | (27,829) | ||
Other assets | (221) | (203) | ||
Total other assets | (807,451) | (761,188) | ||
TOTAL ASSETS | (842,101) | (791,741) | ||
Capitalization: | ||||
Common stockholders' equity | (782,388) | (738,433) | ||
Affiliate long-term debt | (30,060) | (27,828) | ||
Long-term debt, net | 0 | 0 | ||
Total capitalization | (812,448) | (766,261) | ||
Current liabilities: | ||||
Current maturities of long-term debt, net | 0 | 0 | ||
Short-term borrowings | 0 | 0 | ||
Payables to affiliates | (29,633) | (25,453) | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 0 | 0 | ||
Total current liabilities | (29,633) | (25,453) | ||
Unamortized investment tax credits | 0 | 0 | ||
Deferred income taxes | (20) | (43) | ||
Pension and postretirement benefits other than pensions | 0 | 0 | ||
Regulatory and other long-term liabilities | 0 | 16 | ||
Advances for construction | 0 | 0 | ||
Contributions in aid of construction | 0 | 0 | ||
TOTAL CAPITALIZATION AND LIABILITIES | (842,101) | (791,741) | ||
Parent Company | Reportable Legal Entities | ||||
Utility plant: | ||||
Utility plant | 1,318 | 1,318 | ||
Less accumulated depreciation and amortization | (1,107) | (1,013) | ||
Net utility plant | 211 | 305 | ||
Current assets: | ||||
Cash and cash equivalents | 3,096 | 3,779 | ||
Receivables and unbilled revenue | 0 | 126 | ||
Receivables from affiliates | 25,803 | 21,318 | ||
Other current assets | 90 | 80 | ||
Total current assets | 28,989 | 25,303 | ||
Other assets: | ||||
Regulatory assets | 0 | 0 | ||
Investments in affiliates | 777,170 | 733,156 | ||
Long-term affiliate notes receivable | 30,060 | 27,829 | ||
Other assets | 409 | 133 | ||
Total other assets | 807,639 | 761,118 | ||
TOTAL ASSETS | 836,839 | 786,726 | ||
Capitalization: | ||||
Common stockholders' equity | 779,906 | 730,157 | ||
Affiliate long-term debt | 0 | 0 | ||
Long-term debt, net | 0 | 0 | ||
Total capitalization | 779,906 | 730,157 | ||
Current liabilities: | ||||
Current maturities of long-term debt, net | 0 | 0 | ||
Short-term borrowings | 55,100 | 55,100 | ||
Payables to affiliates | 0 | 17 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other liabilities | 313 | 107 | ||
Total current liabilities | 55,413 | 55,224 | ||
Unamortized investment tax credits | 0 | 0 | ||
Deferred income taxes | 1,520 | 1,376 | ||
Pension and postretirement benefits other than pensions | 0 | 0 | ||
Regulatory and other long-term liabilities | 0 | (31) | ||
Advances for construction | 0 | 0 | ||
Contributions in aid of construction | 0 | 0 | ||
TOTAL CAPITALIZATION AND LIABILITIES | 836,839 | 786,726 | ||
Cal Water | Reportable Legal Entities | ||||
Utility plant: | ||||
Utility plant | 3,332,331 | 3,021,437 | ||
Less accumulated depreciation and amortization | (1,079,627) | (938,072) | ||
Net utility plant | 2,252,704 | 2,083,365 | ||
Current assets: | ||||
Cash and cash equivalents | 29,098 | 33,763 | ||
Receivables and unbilled revenue | 114,999 | 118,632 | ||
Receivables from affiliates | 3,621 | 4,074 | ||
Other current assets | 20,615 | 16,907 | ||
Total current assets | 168,333 | 173,376 | ||
Other assets: | ||||
Regulatory assets | 428,639 | 349,414 | ||
Investments in affiliates | 0 | 0 | ||
Long-term affiliate notes receivable | 0 | 0 | ||
Other assets | 81,591 | 58,959 | ||
Total other assets | 510,230 | 408,373 | ||
TOTAL ASSETS | 2,931,267 | 2,665,114 | ||
Capitalization: | ||||
Common stockholders' equity | 700,784 | 659,340 | ||
Affiliate long-term debt | 0 | 0 | ||
Long-term debt, net | 786,310 | 709,444 | ||
Total capitalization | 1,487,094 | 1,368,784 | ||
Current liabilities: | ||||
Current maturities of long-term debt, net | 21,732 | 104,664 | ||
Short-term borrowings | 120,000 | 10,000 | ||
Payables to affiliates | 6,115 | 488 | ||
Accounts payable | 104,419 | 92,310 | ||
Accrued expenses and other liabilities | 50,569 | 53,655 | ||
Total current liabilities | 302,835 | 261,117 | ||
Unamortized investment tax credits | 1,575 | 1,649 | ||
Deferred income taxes | 217,847 | 210,052 | ||
Pension and postretirement benefits other than pensions | 258,907 | 193,538 | ||
Regulatory and other long-term liabilities | 262,859 | 250,720 | ||
Advances for construction | 190,568 | 185,843 | ||
Contributions in aid of construction | 209,582 | 193,411 | ||
TOTAL CAPITALIZATION AND LIABILITIES | 2,931,267 | 2,665,114 | ||
All Other Subsidiaries | Reportable Legal Entities | ||||
Utility plant: | ||||
Utility plant | 224,033 | 213,888 | ||
Less accumulated depreciation and amortization | (65,561) | (59,735) | ||
Net utility plant | 158,472 | 154,153 | ||
Current assets: | ||||
Cash and cash equivalents | 10,459 | 9,634 | ||
Receivables and unbilled revenue | 4,350 | 4,201 | ||
Receivables from affiliates | 209 | 61 | ||
Other current assets | 2,005 | 1,580 | ||
Total current assets | 17,023 | 15,476 | ||
Other assets: | ||||
Regulatory assets | 4,683 | 4,155 | ||
Investments in affiliates | 0 | 0 | ||
Long-term affiliate notes receivable | 0 | 0 | ||
Other assets | 5,125 | 3,821 | ||
Total other assets | 9,808 | 7,976 | ||
TOTAL ASSETS | 185,303 | 177,605 | ||
Capitalization: | ||||
Common stockholders' equity | 81,604 | 79,093 | ||
Affiliate long-term debt | 30,060 | 27,828 | ||
Long-term debt, net | 444 | 583 | ||
Total capitalization | 112,108 | 107,504 | ||
Current liabilities: | ||||
Current maturities of long-term debt, net | 136 | 247 | ||
Short-term borrowings | 0 | 0 | ||
Payables to affiliates | 23,518 | 24,948 | ||
Accounts payable | 4,044 | 3,270 | ||
Accrued expenses and other liabilities | 2,408 | 1,813 | ||
Total current liabilities | 30,106 | 30,278 | ||
Unamortized investment tax credits | 0 | 0 | ||
Deferred income taxes | 3,243 | 1,648 | ||
Pension and postretirement benefits other than pensions | 0 | 0 | ||
Regulatory and other long-term liabilities | 7,397 | 5,817 | ||
Advances for construction | 494 | 499 | ||
Contributions in aid of construction | 31,955 | 31,859 | ||
TOTAL CAPITALIZATION AND LIABILITIES | $ 185,303 | $ 177,605 |
- Condensed Consolidating State
- Condensed Consolidating Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Consolidating Financial Statements | |||||||||||
Operating revenue | $ 176,878 | $ 232,537 | $ 179,031 | $ 126,111 | $ 167,417 | $ 221,288 | $ 174,938 | $ 134,553 | $ 714,557 | $ 698,196 | $ 676,113 |
Operations: | |||||||||||
Purchased water | 212,461 | 207,103 | 199,081 | ||||||||
Purchased power | 31,362 | 31,080 | 28,862 | ||||||||
Pump taxes | 11,518 | 14,664 | 13,924 | ||||||||
Administrative and general | 108,617 | 100,781 | 93,326 | ||||||||
Other operations | 90,061 | 79,868 | 74,448 | ||||||||
Maintenance | 26,834 | 24,494 | 22,530 | ||||||||
Depreciation and amortization | 89,220 | 83,781 | 76,783 | ||||||||
Income tax (benefit) expense | 16,280 | 18,589 | 35,279 | ||||||||
Property and other taxes | 28,792 | 27,296 | 24,797 | ||||||||
Total operating expenses | 615,145 | 587,656 | 569,030 | ||||||||
Net operating income | 20,356 | 51,567 | 27,013 | 476 | 26,536 | 47,329 | 26,839 | 9,836 | 99,412 | 110,540 | 107,083 |
Other income and expenses: | |||||||||||
Non-regulated revenue | 19,205 | 18,272 | 15,898 | ||||||||
Non-regulated expenses | (13,869) | (22,787) | (9,390) | ||||||||
Other components of net periodic benefit cost | (5,733) | (9,308) | (9,588) | ||||||||
Allowance for equity funds used during construction | 6,685 | 3,954 | 3,750 | ||||||||
Gain on sale of non-utility property | 28 | 50 | 663 | ||||||||
Income tax (expense) benefit on other income and expenses | (1,391) | 2,717 | (1,548) | ||||||||
Net other income (loss) | 4,925 | (7,102) | (215) | ||||||||
Interest expense: | |||||||||||
Interest expense | 44,891 | 39,917 | 36,288 | ||||||||
Allowance for borrowed funds used during construction | (3,670) | (2,063) | (2,360) | ||||||||
Net interest expense | 41,221 | 37,854 | 33,928 | ||||||||
Equity earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Net income | $ 11,336 | $ 42,424 | $ 16,996 | $ (7,640) | $ 15,368 | $ 36,173 | $ 14,805 | $ (762) | 63,116 | 65,584 | 72,940 |
Consolidating Adjustments | |||||||||||
Condensed Consolidating Financial Statements | |||||||||||
Operating revenue | 0 | 0 | 0 | ||||||||
Operations: | |||||||||||
Purchased water | 0 | 0 | 0 | ||||||||
Purchased power | 0 | 0 | 0 | ||||||||
Pump taxes | 0 | 0 | 0 | ||||||||
Administrative and general | 0 | 0 | 0 | ||||||||
Other operations | (583) | (583) | (524) | ||||||||
Maintenance | 0 | 0 | 0 | ||||||||
Depreciation and amortization | (82) | (87) | (91) | ||||||||
Income tax (benefit) expense | 858 | 923 | 1,059 | ||||||||
Property and other taxes | 0 | 0 | 0 | ||||||||
Total operating expenses | 193 | 253 | 444 | ||||||||
Net operating income | (193) | (253) | (444) | ||||||||
Other income and expenses: | |||||||||||
Non-regulated revenue | (2,983) | (2,916) | (2,509) | ||||||||
Non-regulated expenses | 0 | 0 | 0 | ||||||||
Other components of net periodic benefit cost | 0 | 0 | 0 | ||||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | ||||||||
Gain on sale of non-utility property | 0 | 0 | 0 | ||||||||
Income tax (expense) benefit on other income and expenses | 835 | 816 | 1,022 | ||||||||
Net other income (loss) | (2,148) | (2,100) | (1,487) | ||||||||
Interest expense: | |||||||||||
Interest expense | (2,401) | (2,333) | (1,985) | ||||||||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | ||||||||
Net interest expense | (2,401) | (2,333) | (1,985) | ||||||||
Equity earnings of subsidiaries | (62,745) | (64,748) | (72,487) | ||||||||
Net income | (62,685) | (64,768) | (72,433) | ||||||||
Parent Company | |||||||||||
Other income and expenses: | |||||||||||
Allowance for equity funds used during construction | 0 | ||||||||||
Gain on sale of non-utility property | 0 | ||||||||||
Interest expense: | |||||||||||
Equity earnings of subsidiaries | 72,487 | ||||||||||
Net income | 72,940 | ||||||||||
Parent Company | Reportable Legal Entities | |||||||||||
Condensed Consolidating Financial Statements | |||||||||||
Operating revenue | 0 | 0 | 0 | ||||||||
Operations: | |||||||||||
Purchased water | 0 | 0 | 0 | ||||||||
Purchased power | 0 | 0 | 0 | ||||||||
Pump taxes | 0 | 0 | 0 | ||||||||
Administrative and general | 23 | 0 | 0 | ||||||||
Other operations | 0 | 0 | 0 | ||||||||
Maintenance | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 94 | 94 | 94 | ||||||||
Income tax (benefit) expense | (528) | (960) | (498) | ||||||||
Property and other taxes | 0 | 0 | (4) | ||||||||
Total operating expenses | (411) | (866) | (408) | ||||||||
Net operating income | 411 | 866 | 408 | ||||||||
Other income and expenses: | |||||||||||
Non-regulated revenue | 2,401 | 2,333 | 1,985 | ||||||||
Non-regulated expenses | 0 | 0 | 0 | ||||||||
Other components of net periodic benefit cost | 0 | 0 | 0 | ||||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | ||||||||
Gain on sale of non-utility property | 0 | 0 | 0 | ||||||||
Income tax (expense) benefit on other income and expenses | (672) | (652) | (809) | ||||||||
Net other income (loss) | 1,729 | 1,681 | 1,176 | ||||||||
Interest expense: | |||||||||||
Interest expense | 1,769 | 1,711 | 1,131 | ||||||||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | ||||||||
Net interest expense | 1,769 | 1,711 | 1,131 | ||||||||
Equity earnings of subsidiaries | 62,745 | 64,748 | 72,487 | ||||||||
Net income | 63,116 | 65,584 | 72,940 | ||||||||
Cal Water | |||||||||||
Other income and expenses: | |||||||||||
Allowance for equity funds used during construction | 3,750 | ||||||||||
Gain on sale of non-utility property | 663 | ||||||||||
Interest expense: | |||||||||||
Equity earnings of subsidiaries | 0 | ||||||||||
Net income | 70,071 | ||||||||||
Cal Water | Reportable Legal Entities | |||||||||||
Condensed Consolidating Financial Statements | |||||||||||
Operating revenue | 669,769 | 656,939 | 635,604 | ||||||||
Operations: | |||||||||||
Purchased water | 211,998 | 206,675 | 198,682 | ||||||||
Purchased power | 22,338 | 22,460 | 21,021 | ||||||||
Pump taxes | 11,518 | 14,664 | 13,924 | ||||||||
Administrative and general | 98,675 | 90,563 | 83,163 | ||||||||
Other operations | 83,148 | 73,521 | 67,069 | ||||||||
Maintenance | 25,720 | 23,573 | 21,595 | ||||||||
Depreciation and amortization | 83,183 | 78,601 | 72,327 | ||||||||
Income tax (benefit) expense | 14,677 | 17,678 | 33,313 | ||||||||
Property and other taxes | 25,601 | 24,190 | 21,778 | ||||||||
Total operating expenses | 576,858 | 551,925 | 532,872 | ||||||||
Net operating income | 92,911 | 105,014 | 102,732 | ||||||||
Other income and expenses: | |||||||||||
Non-regulated revenue | 18,080 | 17,658 | 14,608 | ||||||||
Non-regulated expenses | (12,526) | (22,122) | (8,139) | ||||||||
Other components of net periodic benefit cost | (5,559) | (8,886) | (9,032) | ||||||||
Allowance for equity funds used during construction | 6,685 | 3,954 | 3,750 | ||||||||
Gain on sale of non-utility property | 28 | 50 | 663 | ||||||||
Income tax (expense) benefit on other income and expenses | (1,476) | 2,616 | (1,714) | ||||||||
Net other income (loss) | 5,232 | (6,730) | 136 | ||||||||
Interest expense: | |||||||||||
Interest expense | 43,104 | 38,288 | 35,116 | ||||||||
Allowance for borrowed funds used during construction | (3,408) | (1,909) | (2,319) | ||||||||
Net interest expense | 39,696 | 36,379 | 32,797 | ||||||||
Equity earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 58,447 | 61,905 | 70,071 | ||||||||
All Other Subsidiaries | |||||||||||
Other income and expenses: | |||||||||||
Allowance for equity funds used during construction | 0 | ||||||||||
Gain on sale of non-utility property | 0 | ||||||||||
Interest expense: | |||||||||||
Equity earnings of subsidiaries | 0 | ||||||||||
Net income | 2,362 | ||||||||||
All Other Subsidiaries | Reportable Legal Entities | |||||||||||
Condensed Consolidating Financial Statements | |||||||||||
Operating revenue | 44,788 | 41,257 | 40,509 | ||||||||
Operations: | |||||||||||
Purchased water | 463 | 428 | 399 | ||||||||
Purchased power | 9,024 | 8,620 | 7,841 | ||||||||
Pump taxes | 0 | 0 | 0 | ||||||||
Administrative and general | 9,919 | 10,218 | 10,163 | ||||||||
Other operations | 7,496 | 6,930 | 7,903 | ||||||||
Maintenance | 1,114 | 921 | 935 | ||||||||
Depreciation and amortization | 6,025 | 5,173 | 4,453 | ||||||||
Income tax (benefit) expense | 1,273 | 948 | 1,405 | ||||||||
Property and other taxes | 3,191 | 3,106 | 3,023 | ||||||||
Total operating expenses | 38,505 | 36,344 | 36,122 | ||||||||
Net operating income | 6,283 | 4,913 | 4,387 | ||||||||
Other income and expenses: | |||||||||||
Non-regulated revenue | 1,707 | 1,197 | 1,814 | ||||||||
Non-regulated expenses | (1,343) | (665) | (1,251) | ||||||||
Other components of net periodic benefit cost | (174) | (422) | (556) | ||||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | ||||||||
Gain on sale of non-utility property | 0 | 0 | 0 | ||||||||
Income tax (expense) benefit on other income and expenses | (78) | (63) | (47) | ||||||||
Net other income (loss) | 112 | 47 | (40) | ||||||||
Interest expense: | |||||||||||
Interest expense | 2,419 | 2,251 | 2,026 | ||||||||
Allowance for borrowed funds used during construction | (262) | (154) | (41) | ||||||||
Net interest expense | 2,157 | 2,097 | 1,985 | ||||||||
Equity earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Net income | $ 4,238 | $ 2,863 | $ 2,362 |
- Condensed Consolidating Sta_2
- Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||||||||||
Net income (loss) | $ 11,336 | $ 42,424 | $ 16,996 | $ (7,640) | $ 15,368 | $ 36,173 | $ 14,805 | $ (762) | $ 63,116 | $ 65,584 | $ 72,940 |
Operating activities: | |||||||||||
Equity earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Dividends received from Affiliates | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 91,288 | 85,707 | 78,592 | ||||||||
Change in value of life insurance contracts | (5,104) | 2,334 | (3,058) | ||||||||
Stock-based compensation | 6,731 | 3,141 | 3,118 | ||||||||
Gain on sale of non-utility properties | (28) | (50) | (663) | ||||||||
Changes in normalized deferred income taxes | 15,346 | 20,909 | 21,087 | ||||||||
Allowance for equity funds used during construction | (6,685) | (3,954) | (3,750) | ||||||||
Changes in operating assets and liabilities | 2,424 | 16,483 | (36,389) | ||||||||
Other changes in noncurrent assets and liabilities | 1,706 | (11,135) | 15,965 | ||||||||
Net cash provided by operating activities | 168,794 | 179,019 | 147,842 | ||||||||
Investing activities: | |||||||||||
Utility plant expenditures | (273,770) | (271,707) | (259,194) | ||||||||
TCP settlement proceeds | 56,004 | ||||||||||
Proceeds from sale of non-utility assets | 28 | 59 | 666 | ||||||||
Investment in affiliates | 0 | ||||||||||
Change in affiliate advances | 0 | 0 | 0 | ||||||||
Issuance of affiliate short-term borrowings | 0 | 0 | 0 | ||||||||
Collection of affiliate short-term debt | 0 | ||||||||||
Collection of affiliate long-term debt | 0 | 0 | 0 | ||||||||
Life insurance benefits | 0 | 3,491 | 1,558 | ||||||||
Purchase of life insurance | (2,216) | (4,925) | (5,605) | ||||||||
Net cash used in investing activities | (275,958) | (273,082) | (206,571) | ||||||||
Financing Activities: | |||||||||||
Short-term borrowings | 260,000 | 151,000 | 265,000 | ||||||||
Repayment of short-term borrowings | (150,000) | (361,000) | (87,000) | ||||||||
Investment from affiliates | 0 | ||||||||||
Change in affiliate advances | 0 | 0 | 0 | ||||||||
Proceeds from affiliate short-term borrowings | 0 | 0 | |||||||||
Repayment of affiliates short-term debt | 0 | ||||||||||
Repayment of affiliates long-term debt | 0 | 0 | 0 | ||||||||
Issuance of long-term debt, net of debt issuance costs | 398,204 | 299,383 | 0 | ||||||||
Retirement of long-term debt | (405,568) | (16,532) | (26,829) | ||||||||
Advances and contributions in aid of construction | 27,774 | 18,612 | 21,369 | ||||||||
Refunds of advances for construction | (7,566) | (7,297) | (8,378) | ||||||||
Issuance of common stock | 20,423 | 0 | 0 | ||||||||
Repurchase of common stock | (2,497) | (1,645) | (1,505) | ||||||||
Dividends paid to non-affiliates | (38,023) | (36,043) | (34,563) | ||||||||
Dividends paid to affiliates | 0 | 0 | 0 | ||||||||
Net cash provided by financing activities | 102,747 | 46,478 | 128,094 | ||||||||
Change in cash, cash equivalents, and restricted cash | (4,417) | (47,585) | 69,365 | ||||||||
Cash, cash equivalents, and restricted cash at beginning of year | 47,715 | 95,300 | 47,715 | 95,300 | 25,935 | ||||||
Cash, cash equivalents, and restricted cash at end of year | 43,298 | 47,715 | 43,298 | 47,715 | 95,300 | ||||||
Consolidating Adjustments | |||||||||||
Operating activities: | |||||||||||
Net income (loss) | (62,685) | (64,768) | (72,433) | ||||||||
Operating activities: | |||||||||||
Equity earnings of subsidiaries | 62,745 | 64,748 | 72,487 | ||||||||
Dividends received from Affiliates | (38,023) | (36,043) | (34,563) | ||||||||
Depreciation and amortization | (82) | (87) | (91) | ||||||||
Change in value of life insurance contracts | 0 | 0 | 0 | ||||||||
Stock-based compensation | 0 | 0 | 0 | ||||||||
Gain on sale of non-utility properties | 0 | 0 | 0 | ||||||||
Changes in normalized deferred income taxes | 0 | 0 | 0 | ||||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | ||||||||
Changes in operating assets and liabilities | 0 | 0 | 0 | ||||||||
Other changes in noncurrent assets and liabilities | 22 | 107 | 37 | ||||||||
Net cash provided by operating activities | (38,023) | (36,043) | (34,563) | ||||||||
Investing activities: | |||||||||||
Utility plant expenditures | 0 | 0 | 0 | ||||||||
TCP settlement proceeds | 0 | ||||||||||
Proceeds from sale of non-utility assets | 0 | 0 | 0 | ||||||||
Investment in affiliates | 19,294 | ||||||||||
Change in affiliate advances | 4,100 | 617 | 363 | ||||||||
Issuance of affiliate short-term borrowings | 4,300 | 23,700 | 2,610 | ||||||||
Collection of affiliate short-term debt | (20,000) | ||||||||||
Collection of affiliate long-term debt | (1,963) | (1,635) | (1,356) | ||||||||
Life insurance benefits | 0 | 0 | |||||||||
Purchase of life insurance | 0 | 0 | 0 | ||||||||
Net cash used in investing activities | 25,731 | 2,682 | 1,617 | ||||||||
Financing Activities: | |||||||||||
Short-term borrowings | 0 | 0 | 0 | ||||||||
Repayment of short-term borrowings | 0 | 0 | 0 | ||||||||
Investment from affiliates | (19,294) | ||||||||||
Change in affiliate advances | (4,100) | (617) | (363) | ||||||||
Proceeds from affiliate short-term borrowings | (4,300) | (23,700) | (2,610) | ||||||||
Repayment of affiliates short-term debt | 20,000 | ||||||||||
Repayment of affiliates long-term debt | 1,963 | 1,635 | 1,356 | ||||||||
Issuance of long-term debt, net of debt issuance costs | 0 | 0 | |||||||||
Retirement of long-term debt | 0 | 0 | 0 | ||||||||
Advances and contributions in aid of construction | 0 | 0 | 0 | ||||||||
Refunds of advances for construction | 0 | 0 | 0 | ||||||||
Issuance of common stock | 0 | ||||||||||
Repurchase of common stock | 0 | 0 | 0 | ||||||||
Dividends paid to non-affiliates | 0 | 0 | 0 | ||||||||
Dividends paid to affiliates | 38,023 | 36,043 | 34,563 | ||||||||
Net cash provided by financing activities | 12,292 | 33,361 | 32,946 | ||||||||
Change in cash, cash equivalents, and restricted cash | 0 | 0 | 0 | ||||||||
Cash, cash equivalents, and restricted cash at beginning of year | 0 | 0 | 0 | 0 | 0 | ||||||
Cash, cash equivalents, and restricted cash at end of year | 0 | 0 | 0 | 0 | 0 | ||||||
Parent Company | |||||||||||
Operating activities: | |||||||||||
Net income (loss) | 72,940 | ||||||||||
Operating activities: | |||||||||||
Equity earnings of subsidiaries | (72,487) | ||||||||||
Dividends received from Affiliates | 34,563 | ||||||||||
Depreciation and amortization | 94 | ||||||||||
Change in value of life insurance contracts | 0 | ||||||||||
Stock-based compensation | 3,118 | ||||||||||
Gain on sale of non-utility properties | 0 | ||||||||||
Changes in normalized deferred income taxes | 0 | ||||||||||
Allowance for equity funds used during construction | 0 | ||||||||||
Changes in operating assets and liabilities | 184 | ||||||||||
Other changes in noncurrent assets and liabilities | 254 | ||||||||||
Net cash provided by operating activities | 38,666 | ||||||||||
Investing activities: | |||||||||||
Utility plant expenditures | (4) | ||||||||||
TCP settlement proceeds | 0 | ||||||||||
Proceeds from sale of non-utility assets | 0 | ||||||||||
Change in affiliate advances | 172 | ||||||||||
Issuance of affiliate short-term borrowings | (2,610) | ||||||||||
Collection of affiliate long-term debt | 1,356 | ||||||||||
Life insurance benefits | 0 | ||||||||||
Purchase of life insurance | 0 | ||||||||||
Net cash used in investing activities | (1,086) | ||||||||||
Financing Activities: | |||||||||||
Short-term borrowings | 0 | ||||||||||
Repayment of short-term borrowings | (2,000) | ||||||||||
Change in affiliate advances | 0 | ||||||||||
Proceeds from affiliate short-term borrowings | 0 | ||||||||||
Repayment of affiliates long-term debt | 0 | ||||||||||
Retirement of long-term debt | 0 | ||||||||||
Advances and contributions in aid of construction | 0 | ||||||||||
Refunds of advances for construction | 0 | ||||||||||
Repurchase of common stock | (1,505) | ||||||||||
Dividends paid to non-affiliates | (34,563) | ||||||||||
Dividends paid to affiliates | 0 | ||||||||||
Net cash provided by financing activities | (38,068) | ||||||||||
Change in cash, cash equivalents, and restricted cash | (488) | ||||||||||
Cash, cash equivalents, and restricted cash at beginning of year | 4,728 | 4,728 | 5,216 | ||||||||
Cash, cash equivalents, and restricted cash at end of year | 4,728 | ||||||||||
Parent Company | Reportable Legal Entities | |||||||||||
Operating activities: | |||||||||||
Net income (loss) | 63,116 | 65,584 | 72,940 | ||||||||
Operating activities: | |||||||||||
Equity earnings of subsidiaries | (62,745) | (64,748) | (72,487) | ||||||||
Dividends received from Affiliates | 38,023 | 36,043 | |||||||||
Depreciation and amortization | 94 | 94 | |||||||||
Change in value of life insurance contracts | 0 | 0 | |||||||||
Stock-based compensation | 0 | 3,141 | |||||||||
Gain on sale of non-utility properties | 0 | 0 | 0 | ||||||||
Changes in normalized deferred income taxes | 0 | 0 | |||||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | ||||||||
Changes in operating assets and liabilities | 321 | (290) | |||||||||
Other changes in noncurrent assets and liabilities | 6,632 | (348) | |||||||||
Net cash provided by operating activities | 45,441 | 39,476 | |||||||||
Investing activities: | |||||||||||
Utility plant expenditures | 0 | 0 | |||||||||
Proceeds from sale of non-utility assets | 0 | 0 | |||||||||
Investment in affiliates | (19,294) | ||||||||||
Change in affiliate advances | (4,379) | (689) | |||||||||
Issuance of affiliate short-term borrowings | (4,300) | (23,700) | |||||||||
Collection of affiliate short-term debt | 20,000 | ||||||||||
Collection of affiliate long-term debt | 1,963 | 1,635 | |||||||||
Life insurance benefits | 0 | ||||||||||
Purchase of life insurance | 0 | 0 | |||||||||
Net cash used in investing activities | (26,010) | (2,754) | |||||||||
Financing Activities: | |||||||||||
Short-term borrowings | 0 | 20,000 | |||||||||
Repayment of short-term borrowings | 0 | (20,000) | |||||||||
Investment from affiliates | 0 | ||||||||||
Change in affiliate advances | (17) | 17 | |||||||||
Proceeds from affiliate short-term borrowings | 0 | 20,000 | |||||||||
Repayment of affiliates short-term debt | (20,000) | ||||||||||
Repayment of affiliates long-term debt | 0 | 0 | |||||||||
Issuance of long-term debt, net of debt issuance costs | 0 | 0 | |||||||||
Retirement of long-term debt | 0 | 0 | |||||||||
Advances and contributions in aid of construction | 0 | 0 | |||||||||
Refunds of advances for construction | 0 | 0 | |||||||||
Issuance of common stock | 20,423 | ||||||||||
Repurchase of common stock | (2,497) | (1,645) | |||||||||
Dividends paid to non-affiliates | (38,023) | (36,043) | |||||||||
Dividends paid to affiliates | 0 | 0 | |||||||||
Net cash provided by financing activities | (20,114) | (37,671) | |||||||||
Change in cash, cash equivalents, and restricted cash | (683) | (949) | |||||||||
Cash, cash equivalents, and restricted cash at beginning of year | 3,779 | 4,728 | 3,779 | 4,728 | |||||||
Cash, cash equivalents, and restricted cash at end of year | 3,096 | 3,779 | 3,096 | 3,779 | 4,728 | ||||||
Cal Water | |||||||||||
Operating activities: | |||||||||||
Net income (loss) | 70,071 | ||||||||||
Operating activities: | |||||||||||
Equity earnings of subsidiaries | 0 | ||||||||||
Dividends received from Affiliates | 0 | ||||||||||
Depreciation and amortization | 74,041 | ||||||||||
Change in value of life insurance contracts | (3,058) | ||||||||||
Stock-based compensation | 0 | ||||||||||
Gain on sale of non-utility properties | (663) | ||||||||||
Changes in normalized deferred income taxes | 21,087 | ||||||||||
Allowance for equity funds used during construction | (3,750) | ||||||||||
Changes in operating assets and liabilities | (36,611) | ||||||||||
Other changes in noncurrent assets and liabilities | 13,101 | ||||||||||
Net cash provided by operating activities | 134,218 | ||||||||||
Investing activities: | |||||||||||
Utility plant expenditures | (252,055) | ||||||||||
TCP settlement proceeds | 56,004 | ||||||||||
Proceeds from sale of non-utility assets | 666 | ||||||||||
Change in affiliate advances | (485) | ||||||||||
Issuance of affiliate short-term borrowings | 0 | ||||||||||
Collection of affiliate long-term debt | 0 | ||||||||||
Life insurance benefits | 1,558 | ||||||||||
Purchase of life insurance | (5,605) | ||||||||||
Net cash used in investing activities | (199,917) | ||||||||||
Financing Activities: | |||||||||||
Short-term borrowings | 265,000 | ||||||||||
Repayment of short-term borrowings | (85,000) | ||||||||||
Change in affiliate advances | 41 | ||||||||||
Proceeds from affiliate short-term borrowings | 0 | ||||||||||
Repayment of affiliates long-term debt | 0 | ||||||||||
Retirement of long-term debt | (26,223) | ||||||||||
Advances and contributions in aid of construction | 21,075 | ||||||||||
Refunds of advances for construction | (8,373) | ||||||||||
Repurchase of common stock | 0 | ||||||||||
Dividends paid to non-affiliates | 0 | ||||||||||
Dividends paid to affiliates | (33,015) | ||||||||||
Net cash provided by financing activities | 133,505 | ||||||||||
Change in cash, cash equivalents, and restricted cash | 67,806 | ||||||||||
Cash, cash equivalents, and restricted cash at beginning of year | 81,401 | 81,401 | 13,595 | ||||||||
Cash, cash equivalents, and restricted cash at end of year | 81,401 | ||||||||||
Cal Water | Reportable Legal Entities | |||||||||||
Operating activities: | |||||||||||
Net income (loss) | 58,447 | 61,905 | 70,071 | ||||||||
Operating activities: | |||||||||||
Equity earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Dividends received from Affiliates | 0 | 0 | |||||||||
Depreciation and amortization | 85,175 | 80,442 | |||||||||
Change in value of life insurance contracts | (5,104) | 2,334 | |||||||||
Stock-based compensation | 0 | 0 | |||||||||
Gain on sale of non-utility properties | (28) | (50) | (663) | ||||||||
Changes in normalized deferred income taxes | 15,346 | 20,909 | |||||||||
Allowance for equity funds used during construction | (6,685) | (3,954) | (3,750) | ||||||||
Changes in operating assets and liabilities | 1,883 | 16,943 | |||||||||
Other changes in noncurrent assets and liabilities | (308) | (12,284) | |||||||||
Net cash provided by operating activities | 148,726 | 166,245 | |||||||||
Investing activities: | |||||||||||
Utility plant expenditures | (262,500) | (261,456) | |||||||||
Proceeds from sale of non-utility assets | 28 | 59 | |||||||||
Investment in affiliates | 0 | ||||||||||
Change in affiliate advances | 453 | 19 | |||||||||
Issuance of affiliate short-term borrowings | 0 | 0 | |||||||||
Collection of affiliate short-term debt | 0 | ||||||||||
Collection of affiliate long-term debt | 0 | 0 | |||||||||
Life insurance benefits | 3,491 | ||||||||||
Purchase of life insurance | (2,216) | (4,925) | |||||||||
Net cash used in investing activities | (264,235) | (262,812) | |||||||||
Financing Activities: | |||||||||||
Short-term borrowings | 260,000 | 131,000 | |||||||||
Repayment of short-term borrowings | (150,000) | (341,000) | |||||||||
Investment from affiliates | 19,294 | ||||||||||
Change in affiliate advances | 5,627 | (93) | |||||||||
Proceeds from affiliate short-term borrowings | 0 | 0 | |||||||||
Repayment of affiliates short-term debt | 0 | ||||||||||
Repayment of affiliates long-term debt | 0 | 0 | |||||||||
Issuance of long-term debt, net of debt issuance costs | 398,204 | 299,383 | |||||||||
Retirement of long-term debt | (405,317) | (16,200) | |||||||||
Advances and contributions in aid of construction | 27,005 | 18,218 | |||||||||
Refunds of advances for construction | (7,565) | (7,279) | |||||||||
Issuance of common stock | 0 | ||||||||||
Repurchase of common stock | 0 | 0 | |||||||||
Dividends paid to non-affiliates | 0 | 0 | |||||||||
Dividends paid to affiliates | (36,297) | (34,624) | |||||||||
Net cash provided by financing activities | 110,951 | 49,405 | |||||||||
Change in cash, cash equivalents, and restricted cash | (4,558) | (47,162) | |||||||||
Cash, cash equivalents, and restricted cash at beginning of year | 34,239 | 81,401 | 34,239 | 81,401 | |||||||
Cash, cash equivalents, and restricted cash at end of year | 29,681 | 34,239 | 29,681 | 34,239 | 81,401 | ||||||
All Other Subsidiaries | |||||||||||
Operating activities: | |||||||||||
Net income (loss) | 2,362 | ||||||||||
Operating activities: | |||||||||||
Equity earnings of subsidiaries | 0 | ||||||||||
Dividends received from Affiliates | 0 | ||||||||||
Depreciation and amortization | 4,548 | ||||||||||
Change in value of life insurance contracts | 0 | ||||||||||
Stock-based compensation | 0 | ||||||||||
Gain on sale of non-utility properties | 0 | ||||||||||
Changes in normalized deferred income taxes | 0 | ||||||||||
Allowance for equity funds used during construction | 0 | ||||||||||
Changes in operating assets and liabilities | 38 | ||||||||||
Other changes in noncurrent assets and liabilities | 2,573 | ||||||||||
Net cash provided by operating activities | 9,521 | ||||||||||
Investing activities: | |||||||||||
Utility plant expenditures | (7,135) | ||||||||||
TCP settlement proceeds | 0 | ||||||||||
Proceeds from sale of non-utility assets | 0 | ||||||||||
Change in affiliate advances | (50) | ||||||||||
Issuance of affiliate short-term borrowings | 0 | ||||||||||
Collection of affiliate long-term debt | 0 | ||||||||||
Life insurance benefits | 0 | ||||||||||
Purchase of life insurance | 0 | ||||||||||
Net cash used in investing activities | (7,185) | ||||||||||
Financing Activities: | |||||||||||
Short-term borrowings | 0 | ||||||||||
Repayment of short-term borrowings | 0 | ||||||||||
Change in affiliate advances | 322 | ||||||||||
Proceeds from affiliate short-term borrowings | 2,610 | ||||||||||
Repayment of affiliates long-term debt | (1,356) | ||||||||||
Retirement of long-term debt | (606) | ||||||||||
Advances and contributions in aid of construction | 294 | ||||||||||
Refunds of advances for construction | (5) | ||||||||||
Repurchase of common stock | 0 | ||||||||||
Dividends paid to non-affiliates | 0 | ||||||||||
Dividends paid to affiliates | (1,548) | ||||||||||
Net cash provided by financing activities | (289) | ||||||||||
Change in cash, cash equivalents, and restricted cash | 2,047 | ||||||||||
Cash, cash equivalents, and restricted cash at beginning of year | 9,171 | 9,171 | 7,124 | ||||||||
Cash, cash equivalents, and restricted cash at end of year | 9,171 | ||||||||||
All Other Subsidiaries | Reportable Legal Entities | |||||||||||
Operating activities: | |||||||||||
Net income (loss) | 4,238 | 2,863 | 2,362 | ||||||||
Operating activities: | |||||||||||
Equity earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Dividends received from Affiliates | 0 | 0 | |||||||||
Depreciation and amortization | 6,101 | 5,258 | |||||||||
Change in value of life insurance contracts | 0 | 0 | |||||||||
Stock-based compensation | 6,731 | 0 | |||||||||
Gain on sale of non-utility properties | 0 | 0 | 0 | ||||||||
Changes in normalized deferred income taxes | 0 | 0 | |||||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | ||||||||
Changes in operating assets and liabilities | 220 | (170) | |||||||||
Other changes in noncurrent assets and liabilities | (4,640) | 1,390 | |||||||||
Net cash provided by operating activities | 12,650 | 9,341 | |||||||||
Investing activities: | |||||||||||
Utility plant expenditures | (11,270) | (10,251) | |||||||||
Proceeds from sale of non-utility assets | 0 | 0 | |||||||||
Investment in affiliates | 0 | ||||||||||
Change in affiliate advances | (174) | 53 | |||||||||
Issuance of affiliate short-term borrowings | 0 | 0 | |||||||||
Collection of affiliate short-term debt | 0 | ||||||||||
Collection of affiliate long-term debt | 0 | 0 | |||||||||
Life insurance benefits | 0 | ||||||||||
Purchase of life insurance | 0 | 0 | |||||||||
Net cash used in investing activities | (11,444) | (10,198) | |||||||||
Financing Activities: | |||||||||||
Short-term borrowings | 0 | 0 | |||||||||
Repayment of short-term borrowings | 0 | 0 | |||||||||
Investment from affiliates | 0 | ||||||||||
Change in affiliate advances | (1,510) | 693 | |||||||||
Proceeds from affiliate short-term borrowings | 4,300 | 3,700 | |||||||||
Repayment of affiliates short-term debt | 0 | ||||||||||
Repayment of affiliates long-term debt | (1,963) | (1,635) | |||||||||
Issuance of long-term debt, net of debt issuance costs | 0 | 0 | |||||||||
Retirement of long-term debt | (251) | (332) | |||||||||
Advances and contributions in aid of construction | 769 | 394 | |||||||||
Refunds of advances for construction | (1) | (18) | |||||||||
Issuance of common stock | 0 | ||||||||||
Repurchase of common stock | 0 | 0 | |||||||||
Dividends paid to non-affiliates | 0 | 0 | |||||||||
Dividends paid to affiliates | (1,726) | (1,419) | |||||||||
Net cash provided by financing activities | (382) | 1,383 | |||||||||
Change in cash, cash equivalents, and restricted cash | 824 | 526 | |||||||||
Cash, cash equivalents, and restricted cash at beginning of year | $ 9,697 | $ 9,171 | 9,697 | 9,171 | |||||||
Cash, cash equivalents, and restricted cash at end of year | $ 10,521 | $ 9,697 | $ 10,521 | $ 9,697 | $ 9,171 |