Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 24, 2019 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity File Number | 1-6659 | |
Entity Registrant Name | AQUA AMERICA, INC. | |
Entity Central Index Key | 0000078128 | |
Current Fiscal Year End Date | --12-31 | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-1702594 | |
Entity Address, Address Line One | 762 W. Lancaster Avenue | |
Entity Address, City or Town | Bryn Mawr | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19010 -3489 | |
City Area Code | 610 | |
Local Phone Number | 527-8000 | |
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 Common Stock, Shares Outstanding | 215,776,908 | |
Common Class A [Member] | ||
Title of 12(b) Security | Common stock, $0.50 par value | |
Trading Symbol | WTR | |
Security Exchange Name | NYSE | |
Tangible Equity Units [Member] | ||
Title of 12(b) Security | 6.00% Tangible Equity Units | |
Trading Symbol | WTRU | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Property, plant and equipment, at cost | $ 7,881,313 | $ 7,648,469 |
Less: accumulated depreciation | 1,766,465 | 1,718,143 |
Net property, plant and equipment | 6,114,848 | 5,930,326 |
Current assets: | ||
Cash and cash equivalents | 1,974,076 | 3,627 |
Accounts receivable and unbilled revenues, net | 110,741 | 101,225 |
Inventory, materials and supplies | 16,294 | 15,844 |
Prepayments and other current assets | 15,251 | 23,337 |
Assets held for sale | 1,558 | 3,139 |
Total current assets | 2,117,920 | 147,172 |
Regulatory assets | 832,799 | 788,076 |
Deferred charges and other assets, net | 41,449 | 39,237 |
Investment in joint venture | 7,448 | 6,959 |
Goodwill | 52,722 | 52,726 |
Operating lease right-of-use assets | 13,164 | |
Total assets | 9,180,350 | 6,964,496 |
Stockholders' equity: | ||
Common stock at $0.50 par value, authorized 300,000,000 shares, issued 218,887,834 and 181,151,827 as of June 30, 2019 and December 31, 2018 | 109,444 | 90,576 |
Capital in excess of par value | 2,633,271 | 820,378 |
Retained earnings | 1,159,753 | 1,174,245 |
Treasury stock, at cost, 3,112,376 and 3,060,206 shares as of June 30, 2019 and December 31, 2018 | (77,694) | (75,835) |
Total stockholders' equity | 3,824,774 | 2,009,364 |
Long-term debt, excluding current portion | 2,779,074 | 2,419,115 |
Less: debt issuance costs | 29,870 | 20,651 |
Long-term debt, excluding current portion, net of debt issuance costs | 2,749,204 | 2,398,464 |
Commitments and contingencies (See Note 15) | ||
Current liabilities: | ||
Current portion of long-term debt | 221,393 | 144,545 |
Loans payable | 6,076 | 15,449 |
Accounts payable | 57,463 | 77,331 |
Book overdraft | 22,294 | 8,950 |
Accrued interest | 30,755 | 23,300 |
Accrued taxes | 17,962 | 22,234 |
Interest rate swap agreements | 59,779 | |
Other accrued liabilities | 43,006 | 47,389 |
Total current liabilities | 398,949 | 398,977 |
Deferred credits and other liabilities: | ||
Deferred income taxes and investment tax credits | 876,332 | 845,403 |
Customers' advances for construction | 102,801 | 93,343 |
Regulatory liabilities | 525,864 | 531,027 |
Operating lease liabilities | 11,913 | |
Other | 97,365 | 97,182 |
Total deferred credits and other liabilities | 1,614,275 | 1,566,955 |
Contributions in aid of construction | 593,148 | 590,736 |
Total liabilities and equity | $ 9,180,350 | $ 6,964,496 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets [Abstract] | ||
Common stock, par value | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 218,887,834 | 181,151,827 |
Treasury stock, shares | 3,112,376 | 3,060,206 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidated Statements Of Net Income [Abstract] | ||||
Operating revenues | $ 218,892 | $ 211,860 | $ 420,024 | $ 406,207 |
Operating expenses: | ||||
Operations and maintenance | 86,445 | 73,515 | 165,759 | 147,461 |
Depreciation | 39,550 | 36,613 | 78,624 | 72,580 |
Amortization | (2,920) | 149 | (2,584) | 279 |
Taxes other than income taxes | 14,868 | 14,829 | 29,837 | 29,796 |
Total operating expenses | 137,943 | 125,106 | 271,636 | 250,116 |
Operating income | 80,949 | 86,754 | 148,388 | 156,091 |
Other expense (income): | ||||
Interest expense, net | 23,309 | 23,723 | 51,159 | 47,194 |
Allowance for funds used during construction | (3,611) | (2,577) | (7,667) | (5,444) |
Change in fair value of interest rate swap agreements | (11,040) | 23,742 | ||
Loss on debt extinguishment | 18,935 | 18,935 | ||
Gain on sale of other assets | (48) | (141) | (268) | (337) |
Equity earnings in joint venture | (1,240) | (911) | (1,783) | (1,293) |
Other | 1,912 | 437 | 2,784 | 1,040 |
Income before income taxes | 52,732 | 66,223 | 61,486 | 114,931 |
Provision for income tax benefit | (2,171) | (367) | (10,341) | (2,498) |
Net income | 54,903 | 66,590 | 71,827 | 117,429 |
Comprehensive income | $ 54,903 | $ 66,590 | $ 71,827 | $ 117,429 |
Net income per common share: | ||||
Basic | $ 0.25 | $ 0.37 | $ 0.36 | $ 0.66 |
Diluted | $ 0.25 | $ 0.37 | $ 0.36 | $ 0.66 |
Average common shares outstanding during the period: | ||||
Basic | 219,055 | 177,901 | 198,747 | 177,852 |
Diluted | 219,790 | 178,273 | 199,303 | 178,299 |
Consolidated Statements Of Capi
Consolidated Statements Of Capitalization - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Stockholders' equity: | ||
Common stock, $.50 par value | $ 109,444 | $ 90,576 |
Capital in excess of par value | 2,633,271 | 820,378 |
Retained earnings | 1,159,753 | 1,174,245 |
Treasury stock, at cost | (77,694) | (75,835) |
Total stockholders' equity | 3,824,774 | 2,009,364 |
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 1,705,459 | 1,604,233 |
Total long-term debt | 3,000,467 | 2,563,660 |
Current portion of long-term debt | 221,393 | 144,545 |
Long-term debt, excluding current portion | 2,779,074 | 2,419,115 |
Less: debt issuance costs | 29,870 | 20,651 |
Long-term debt, excluding current portion, net of debt issuance costs | 2,749,204 | 2,398,464 |
Total capitalization | 6,573,978 | 4,407,828 |
Long-Term Debt Of Subsidiaries 0.00% To 0.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 3,413 | 3,732 |
Long-Term Debt Of Subsidiaries 1.00% To 1.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 11,624 | 11,588 |
Long-Term Debt Of Subsidiaries 2.00% To 2.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 16,587 | 17,488 |
Long-Term Debt Of Subsidiaries 3.00% To 3.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 496,319 | 497,426 |
Long-Term Debt Of Subsidiaries 4.00% To 4.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 955,566 | 831,066 |
Long-Term Debt Of Subsidiaries 5.00% To 5.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 134,478 | 154,788 |
Long-Term Debt Of Subsidiaries 6.00% To 6.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 31,000 | 31,000 |
Long-Term Debt Of Subsidiaries 7.00% To 7.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 31,163 | 31,564 |
Long-Term Debt Of Subsidiaries 8.00% To 8.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 5,309 | 5,581 |
Long-Term Debt Of Subsidiaries 9.00% To 9.99% [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Long-term debt of subsidiaries | 20,000 | 20,000 |
Revolving Credit Agreement, Due 2023 [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Notes payable to bank under revolving credit agreement, variable rate, due 2021 | 370,000 | |
Bank notes at 2.48% and 3.50% due 2019 and 2020 [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Unsecured notes payable | 100,000 | 100,000 |
Amortizing notes at 3.00% due 2022 [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Unsecured notes payable | 119,081 | |
Notes ranging from 3.01% to 3.59% due 2027 through 2041 [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Unsecured notes payable | 525,000 | 245,000 |
Notes at 4.28%, due 2049 [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Unsecured notes payable | 500,000 | 112,000 |
Notes ranging from 5.64% to 5.95%, due 2020 through 2034 [Member] | ||
Long-term debt of subsidiaries (substantially collateralized by utility plant): | ||
Unsecured notes payable | $ 50,927 | $ 132,427 |
Consolidated Statements Of Ca_2
Consolidated Statements Of Capitalization (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Common stock, par value | $ 0.50 | $ 0.50 |
Revolving Credit Agreement, Due 2023 [Member] | ||
Maturity date | 2023 | 2023 |
Bank notes at 2.48% due 2019 [Member] | ||
Interest rate | 2.48% | 2.48% |
Maturity date | 2019 | 2019 |
Bank notes at 3.50% due 2020 [Member] | ||
Interest rate | 3.50% | 3.50% |
Maturity date | 2020 | 2020 |
Amortizing notes at 3.00% due 2022 [Member] | ||
Interest rate | 3.00% | 3.00% |
Maturity date | 2022 | 2022 |
Notes at 3.01% due 2027 [Member] | ||
Interest rate | 3.01% | 3.01% |
Maturity date | 2027 | 2027 |
Notes at 3.59% due 2041 [Member] | ||
Interest rate | 3.59% | 3.59% |
Maturity date | 2041 | 2041 |
Notes at 4.28%, due 2049 [Member] | ||
Interest rate | 4.28% | 4.28% |
Maturity date | 2049 | 2049 |
Notes at 5.20% due 2020 [Member] | ||
Interest rate | 5.64% | 5.64% |
Maturity date | 2020 | 2020 |
Notes at 5.95% due 2037 [Member] | ||
Interest rate | 5.95% | 5.95% |
Maturity date | 2034 | 2034 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 0.00% To 0.99% [Member] | ||
Interest rate | 0.00% | 0.00% |
Maturity date | 2023 | 2023 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 1.00% To 1.99% [Member] | ||
Interest rate | 1.00% | 1.00% |
Maturity date | 2020 | 2020 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 2.00% To 2.99% [Member] | ||
Interest rate | 2.00% | 2.00% |
Maturity date | 2024 | 2024 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 3.00% To 3.99% [Member] | ||
Interest rate | 3.00% | 3.00% |
Maturity date | 2019 | 2019 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 4.00% To 4.99% [Member] | ||
Interest rate | 4.00% | 4.00% |
Maturity date | 2020 | 2020 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 5.00% To 5.99% [Member] | ||
Interest rate | 5.00% | 5.00% |
Maturity date | 2019 | 2019 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 6.00% To 6.99% [Member] | ||
Interest rate | 6.00% | 6.00% |
Maturity date | 2026 | 2026 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 7.00% To 7.99% [Member] | ||
Interest rate | 7.00% | 7.00% |
Maturity date | 2022 | 2022 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 8.00% To 8.99% [Member] | ||
Interest rate | 8.00% | 8.00% |
Maturity date | 2021 | 2021 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 9.00% To 9.99% [Member] | ||
Interest rate | 9.00% | 9.00% |
Maturity date | 2020 | 2020 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 0.00% To 0.99% [Member] | ||
Interest rate | 0.99% | 0.99% |
Maturity date | 2033 | 2033 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 1.00% To 1.99% [Member] | ||
Interest rate | 1.99% | 1.99% |
Maturity date | 2035 | 2035 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 2.00% To 2.99% [Member] | ||
Interest rate | 2.99% | 2.99% |
Maturity date | 2033 | 2033 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 3.00% To 3.99% [Member] | ||
Interest rate | 3.99% | 3.99% |
Maturity date | 2056 | 2056 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 4.00% To 4.99% [Member] | ||
Interest rate | 4.99% | 4.99% |
Maturity date | 2059 | 2059 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 5.00% To 5.99% [Member] | ||
Interest rate | 5.99% | 5.99% |
Maturity date | 2043 | 2043 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 6.00% To 6.99% [Member] | ||
Interest rate | 6.99% | 6.99% |
Maturity date | 2036 | 2036 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 7.00% To 7.99% [Member] | ||
Interest rate | 7.99% | 7.99% |
Maturity date | 2027 | 2027 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 8.00% To 8.99% [Member] | ||
Interest rate | 8.99% | 8.99% |
Maturity date | 2025 | 2025 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 9.00% To 9.99% [Member] | ||
Interest rate | 9.99% | 9.99% |
Maturity date | 2026 | 2026 |
Consolidated Statement Of Equit
Consolidated Statement Of Equity - USD ($) $ in Thousands | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance at Dec. 31, 2017 | $ 90,350 | $ 807,135 | $ 1,132,556 | $ (73,280) | $ 860 | $ 1,957,621 |
Net income | 50,839 | 50,839 | ||||
Dividends declared | (36,386) | (36,386) | ||||
Issuance of common stock under dividend reinvestment plan | 6 | 355 | 361 | |||
Repurchase of stock | (2,491) | (2,491) | ||||
Equity compensation plan | 91 | (91) | ||||
Exercise of stock options | 31 | 979 | 1,010 | |||
Stock-based compensation | 1,443 | (41) | 1,402 | |||
Cumulative effect of change in accounting principle - financial instruments | 860 | (860) | ||||
Other | (197) | (197) | ||||
Balance at Mar. 31, 2018 | 90,478 | 809,624 | 1,147,828 | (75,771) | 1,972,159 | |
Balance at Dec. 31, 2017 | 90,350 | 807,135 | 1,132,556 | (73,280) | $ 860 | 1,957,621 |
Net income | 117,429 | |||||
Balance at Jun. 30, 2018 | 90,486 | 811,763 | 1,177,874 | (75,771) | 2,004,352 | |
Balance at Mar. 31, 2018 | 90,478 | 809,624 | 1,147,828 | (75,771) | 1,972,159 | |
Net income | 66,590 | 66,590 | ||||
Dividends declared | (36,416) | (36,416) | ||||
Issuance of common stock under dividend reinvestment plan | 5 | 354 | 359 | |||
Equity compensation plan | 2 | (2) | ||||
Exercise of stock options | 1 | 8 | 9 | |||
Stock-based compensation | 1,985 | (128) | 1,857 | |||
Other | (206) | (206) | ||||
Balance at Jun. 30, 2018 | 90,486 | 811,763 | 1,177,874 | (75,771) | 2,004,352 | |
Balance at Dec. 31, 2018 | 90,576 | 820,378 | 1,174,245 | (75,835) | 2,009,364 | |
Net income | 16,924 | 16,924 | ||||
Dividends declared | (39,014) | (39,014) | ||||
Issuance of common stock under dividend reinvestment plan | 59 | 3,976 | 4,035 | |||
Repurchase of stock | (1,857) | (1,857) | ||||
Equity compensation plan | 67 | (67) | ||||
Exercise of stock options | 39 | 1,136 | 1,175 | |||
Stock-based compensation | 1,929 | 42 | 1,971 | |||
Other | (13) | (13) | ||||
Balance at Mar. 31, 2019 | 90,741 | 827,339 | 1,152,197 | (77,692) | 1,992,585 | |
Balance at Dec. 31, 2018 | 90,576 | 820,378 | 1,174,245 | (75,835) | 2,009,364 | |
Net income | 71,827 | |||||
Balance at Jun. 30, 2019 | 109,444 | 2,633,271 | 1,159,753 | (77,694) | 3,824,774 | |
Balance at Mar. 31, 2019 | 90,741 | 827,339 | 1,152,197 | (77,692) | 1,992,585 | |
Net income | 54,903 | 54,903 | ||||
Dividends declared | (47,249) | (47,249) | ||||
Stock issued to finance pending acquisition | 18,685 | 1,245,440 | 1,264,125 | |||
Proceeds from stock purchase contract issued under tangible equity units | 557,837 | 557,837 | ||||
Issuance of common stock under dividend reinvestment plan | 5 | 380 | 385 | |||
Repurchase of stock | (2) | (2) | ||||
Equity compensation plan | 3 | (3) | ||||
Exercise of stock options | 10 | 361 | 371 | |||
Stock-based compensation | 2,129 | (98) | 2,031 | |||
Other | (212) | (212) | ||||
Balance at Jun. 30, 2019 | $ 109,444 | $ 2,633,271 | $ 1,159,753 | $ (77,694) | $ 3,824,774 |
Consolidated Statement Of Equ_2
Consolidated Statement Of Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Consolidated Statement Of Equity (Parenthetical) [Abstract] | ||||
Dividend declared per common share | $ 0.2190 | $ 0.2190 | $ 0.2047 | $ 0.2047 |
Stock issued for acquisition, shares | 37,370,017 | |||
Issuance of common stock under dividend reinvestment plan, shares | 10,162 | 117,845 | 10,918 | 11,252 |
Repurchase of stock, shares | 46 | 52,124 | 71,940 | |
Equity compensation plan, shares | 5,099 | 134,257 | 3,969 | 181,670 |
Exercise of stock options, shares | 21,148 | 77,479 | 411 | 62,688 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flow - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 71,827 | $ 117,429 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 76,040 | 72,859 |
Deferred income taxes | (11,884) | (4,602) |
Provision for doubtful accounts | 2,127 | 2,213 |
Stock-based compensation | 4,058 | 3,432 |
Gain on sale of other assets | (268) | (337) |
Gain on sale of utility system | (403) | |
Loss on interest rate swap agreements | 23,742 | |
Loss on debt extinguishment | 18,935 | |
Settlement of interest rate swap agreements | (83,520) | |
Net change in receivables, inventory and prepayments | (5,672) | (11,110) |
Net change in payables, accrued interest, accrued taxes and other accrued liabilities | (658) | (6,165) |
Pension and other postretirement benefits contributions | (6,595) | (8,692) |
Other | (186) | 4,658 |
Net cash flows from operating activities | 87,543 | 169,685 |
Cash flows from investing activities: | ||
Property, plant and equipment additions, including the debt component of allowance for funds used during construction of $2,117 and $1,613 | (269,171) | (216,614) |
Acquisitions of utility systems, net | (519) | (190) |
Net proceeds from the sale of other assets | 2,182 | 398 |
Other | 983 | (152) |
Net cash flows used in investing activities | (266,525) | (216,558) |
Cash flows from financing activities: | ||
Customers' advances and contributions in aid of construction | 5,914 | 4,068 |
Repayments of customers' advances | (1,488) | (1,818) |
Net repayments of short-term debt | (9,373) | (3,650) |
Proceeds from long-term debt | 1,136,000 | 218,037 |
Repayments of long-term debt | (825,642) | (41,001) |
Extinguishment of long-term debt | (25,237) | |
Change in cash overdraft position | 13,343 | (6,062) |
Issuance of common stock under dividend reinvestment plan | 4,420 | 720 |
Proceeds from stock issued to finance pending acquisition | 1,264,125 | |
Proceeds from tangible equity unit issuance | 674,170 | |
Proceeds from exercised stock options | 1,546 | 1,019 |
Repurchase of common stock | (1,859) | (2,491) |
Dividends paid on common stock | (86,263) | (72,802) |
Other | (225) | (403) |
Net cash flows from financing activities | 2,149,431 | 95,617 |
Net change in cash and cash equivalents | 1,970,449 | 48,744 |
Cash and cash equivalents at beginning of period | 3,627 | 4,204 |
Cash and cash equivalents at end of period | 1,974,076 | 52,948 |
Non-cash investing activities: | ||
Property, plant and equipment additions purchased at the period end, but not yet paid for | 44,809 | 26,010 |
Non-cash customer advances and contributions in aid of construction | $ 21,527 | $ 10,468 |
Consolidated Statements Of Ca_3
Consolidated Statements Of Cash Flow (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidated Statements Of Cash Flow [Abstract] | ||
Debt component of allowance for funds used during construction | $ 2,117 | $ 1,613 |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | Note 1 – Basis of Presentation The accompanying consolidated balance sheets and statements of capitalization of Aqua America, Inc. and subsidiaries (the “Company”, “we”, “us” or “our”) at June 30, 2019, the consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2019 and 2018 the consolidated statements of cash flow for the six months ended June 30, 2019 and 2018, and the consolidated statements of equity for the six months ended June 30, 2019 and 2018 are unaudited, but reflect all adjustments, consisting of only normal recurring accruals, which are, in the opinion of management, necessary to present a fair statement of its consolidated financial position, consolidated changes in equity, consolidated results of operations, and consolidated cash flow for the periods presented. Because they cover interim periods, the statements and related notes to the financial statements do not include all disclosures and notes normally provided in annual financial statements and, therefore, should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The results of operations for interim periods may not be indicative of the results that may be expected for the entire year. The December 31, 2018 consolidated balance sheet data presented herein was derived from the Company’s December 31, 2018 audited consolidated financial statements but does not include all disclosures and notes normally provided in annual financial statements. The preparation of financial statements often requires the selection of specific accounting methods and policies. Further, significant estimates and judgments may be required in selecting and applying those methods and policies in the recognition of the assets and liabilities in its consolidated balance sheets, the revenues and expenses in its consolidated statements of operations, and the information that is contained in its summary of significant accounting policies and notes to consolidated financial statements. Making these estimates and judgments requires the analysis of information concerning events that may not yet be complete and of facts and circumstances that may change over time. Accordingly, actual amounts or future results can differ materially from those estimates that the Company includes currently in its consolidated financial statements, summary of significant accounting policies, and notes. There have been no changes to the summary of significant accounting policies, other than as described in Note 17 – Leases as a result of the adoption of a new accounting pronouncement adopted on January 1, 2019, previously identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 2 – Revenue Recognition The following table presents our revenues disaggregated by major source and customer class: Three Months Ended Three Months Ended June 30, 2019 June 30, 2018 Water Revenues Wastewater Revenues Other Revenues Water Revenues Wastewater Revenues Other Revenues Revenues from contracts with customers: Residential $ 126,550 $ 20,263 $ - $ 122,530 $ 17,583 $ - Commercial 35,155 3,797 - 33,456 2,975 - Fire protection 8,260 - - 7,970 - - Industrial 7,456 487 - 7,309 498 - Other water 11,038 - - 14,220 - - Other wastewater - 1,423 - - 1,920 - Other utility - - 3,362 - - 2,319 Revenues from contracts with customers 188,459 25,970 3,362 185,485 22,976 2,319 Alternative revenue program 317 ( 102 ) - ( 120 ) 164 - Other and eliminations - - 886 - - 1,036 Consolidated $ 188,776 $ 25,868 $ 4,248 $ 185,365 $ 23,140 $ 3,355 Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Water Revenues Wastewater Revenues Other Revenues Water Revenues Wastewater Revenues Other Revenues Revenues from contracts with customers: Residential $ 240,597 $ 40,210 $ - $ 236,367 $ 35,115 $ - Commercial 65,446 7,364 - 63,798 5,863 - Fire protection 16,338 - - 15,908 - - Industrial 14,321 968 - 13,669 961 - Other water 23,845 - - 25,241 - - Other wastewater - 2,819 - - 2,711 - Other utility - - 6,252 - - 4,654 Revenues from contracts with customers 360,547 51,361 6,252 354,983 44,650 4,654 Alternative revenue program 281 ( 215 ) - ( 120 ) 164 - Other and eliminations - - 1,798 - - 1,876 Consolidated $ 360,828 $ 51,146 $ 8,050 $ 354,863 $ 44,814 $ 6,530 Revenues from Contracts with Customers – These revenues are composed of three main categories: water, wastewater, and other. Water revenues represent revenues earned for supplying customers with water service. Wastewater revenues represent revenues earned for treating wastewater and releasing it into the water supply. Other revenues are associated fees that relate to the regulated business but are not water and wastewater revenues. See description below for a discussion on the performance obligation for each of these revenue streams. Tariff Revenues – These revenues are categorized by customer class: residential, commercial, fire protection, industrial, and other water and other wastewater. The rates that generate these revenues are approved by the respective state utility commission, and revenues are billed cyclically and accrued for when unbilled. Other water and other wastewater revenues consist primarily of fines, penalties, surcharges, and availability lot fees. Our performance obligation for tariff revenues is to provide potable water or wastewater treatment service to customers. This performance obligation is satisfied over time as the services are rendered. The amounts that the Company has a right to invoice for tariff revenues reflect the right to consideration from the customers in an amount that corresponds directly with the value transferred to the customer for the performance completed to date. Other Utility Revenues – Other utility revenues represent revenues earned primarily from: antenna revenues, which represent fees received from telecommunication operators that have put cellular antennas on our water towers; operation and maintenance and billing contracts, which represent fees earned from municipalities for our operation of their water or wastewater treatment services or performing billing services; and fees earned from developers for accessing our water mains. The performance obligations vary for these revenues, but all are primarily recognized over time as the service is delivered. Alternative Revenue Program – These revenues represent the difference between the actual billed utility water and wastewater revenues for Aqua Illinois and the revenues set in the last Aqua Illinois rate case. We recognize revenues based on the target amount established in the last rate case, and then record either a regulatory asset or liability based on the cumulative annual difference between the target and actual, which results in either a refund due to customers or a payment from customers. The cumulative annual difference is either refunded to customers or collected from customers over a nine-month period. This revenue program represents a contract between the utility and its regulators, not customers, and therefore is not within the scope of the Financial Accounting Standards Board’s (“FASB”) accounting guidance for recognizing revenue from contracts with customers. Other and Eliminations – Other and eliminations consist of our market-based revenues, which comprises: Aqua Infrastructure and Aqua Resources (described below), and intercompany eliminations for revenue billed between our subsidiaries. Aqua Infrastructure is the holding company for our 49 % investment in a joint venture that operates a private pipeline system to supply raw water to natural gas well drilling operations in the Marcellus Shale of north central Pennsylvania. The joint venture earns revenues through providing non-utility raw water supply services to natural gas drilling companies which enter into water supply contracts. The performance obligation is to deliver non-potable water to the joint venture’s customers. Aqua Infrastructure’s share of the revenues recognized by the joint venture is reflected, net, in equity earnings in joint venture on our consolidated statements of operations. Aqua Resources earns revenues by providing non-regulated water and wastewater services through operating and maintenance contracts, and third-party water and sewer service line repair. The performance obligations are performing agreed upon services in the contract, most commonly operation of third-party water or wastewater treatment services, or billing services, or allowing the use of our logo to a third-party water and sewer service line repair. Revenues are primarily recognized over time as service is delivered. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill [Abstract] | |
Goodwill | Note 3 – Goodwill The following table summarizes the changes in the Company’s goodwill, by business segment: Regulated Segment Other Consolidated Balance at December 31, 2018 $ 47,885 $ 4,841 $ 52,726 Reclassification to utility plant acquisition adjustment ( 4 ) - ( 4 ) Balance at June 30, 2019 $ 47,881 $ 4,841 $ 52,722 The reclassification of goodwill to utility plant acquisition adjustment results from a mechanism approved by the applicable utility commission. The mechanism provides for the transfer over time, and the recovery through customer rates, of goodwill associated with some acquisition upon achieving specific objectives. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Acquisitions [Abstract] | |
Acquisitions | Note 4 – Acquisitions Peoples Gas Acquisition Pursuant to the Company’s growth strategy, on October 22, 2018, the Company entered into a purchase agreement (the “Acquisition Agreement”) with LDC Parent LLC (“Seller”), to acquire its interests in LDC Funding LLC (“LDC”). LDC is the parent of LDC Holdings LLC (“LDC Holdings”), and LDC Holdings is the parent of five natural gas utility companies, which includes Peoples Natural Gas Company, Peoples Gas Company, and Delta Natural Gas Company as well as other operating subsidiaries. This acquisition is referred to as the “Peoples Gas Acquisition” and collectively, these businesses are referred to as “Peoples.” Peoples is headquartered in Pittsburgh, Pennsylvania and serves approximately 740,000 gas utility customers in western Pennsylvania, West Virginia, and Kentucky. At the closing of the Peoples Gas Acquisition, the Company will pay $ 4,275,000 in cash subject to adjustments for working capital, certain capital expenditures, transaction expenses and closing indebtedness as set forth in the Acquisition Agreement. The Company expects to assume approximately $ 1,370,000 of Peoples’ indebtedness upon the closing of the Peoples Gas Acquisition, which would reduce the cash purchase price by approximately $ 1,370,000 . On October 22, 2018, the Company obtained a commitment (the “Bridge Commitment”) from certain banks to provide senior unsecured bridge loans in an aggregate amount of up to $ 5,100,000 to, among other things, backstop the Peoples Gas Acquisition purchase price and refinancing of certain debt of the Company and Peoples. On March 29, 2019, the Company entered into a Stock Purchase Agreement to issue shares of common stock in a private placement to fund a portion of the Peoples Gas Acquisition. The gross proceeds of the Stock Purchase Agreement are expected to amount to approximately $ 750,000 . Further, on April 18, 2019, the Company issued $ 1,293,750 of its common stock and $ 690,000 of its tangible equity units, with a stated amount of $ 50 per unit, and on April 26, 2019, the Company issued $ 900,000 of senior notes. As of June 30, 2019, the Company has terminated $ 4,350,000 of commitments under the Bridge Commitment. The remaining balance available under the Bridge Commitment is $ 750,000 . Refer to Note 6 – Capitalization for further information on these financings. On October 23, 2018, the Company entered into interest rate swap agreements to mitigate interest rate risk associated with an anticipated $ 850,000 of future debt issuances to fund a portion of the Peoples Gas Acquisition. The interest rate swaps were settled on April 24, 2019 in conjunction with the issuance of long-term debt to be used to finance a portion of the purchase price of this acquisition, which resulted in a payment by the Company of $ 83,520 . Refer to Note 7 – Interest Rate Swap Agreements for further information. The interest rate swaps did not qualify for hedge accounting and any changes in the fair value of the swaps was included in our earnings. The Peoples Gas Acquisition is subject to regulatory approval by the Pennsylvania Public Utility Commission, and other customary closing conditions set forth in the Acquisition Agreement. Approval from the United States Federal Trade Commission was obtained in December 2018, and approvals from the public utility commissions of Kentucky and West Virginia were obtained in March 2019 and April 2019, respectively. On June 11, 2019, we filed a settlement agreement with the Pennsylvania Public Utility Commission, and all but two of the intervenors to the case have entered into or chosen not to oppose the settlement agreement. The Peoples Gas Acquisition is expected to close in the fall of 2019, once all regulatory approvals are obtained, and closing conditions are met, and it is anticipated that this acquisition will result in the recording of goodwill. In the event that the Acquisition Agreement is terminated due to certain breaches by the Company, a fee of $ 120,000 would be payable to the Seller as a reverse termination fee. Water and Wastewater Utility Acquisitions In July 2018, the Company acquired the wastewater utility systems assets of Limerick Township, Pennsylvania, which serves 5,497 customers. The total cash purchase price for the utility system was $ 74,836 . The purchase price allocation for this acquisition consisted primarily of acquired property, plant and equipment of $ 64,759 , and goodwill of $ 10,790 . Additionally, during 2018, the Company completed seven acquisitions of water and wastewater utility systems in three states adding 8,661 customers. The total purchase price of these utility systems consisted of $ 42,519 in cash. The purchase price allocation for these acquisitions consisted primarily of acquired property, plant and equipment. Further, in December 2018, the Company acquired the Valley Creek Trunk Sewer System, serving area municipalities in Pennsylvania, from the Tredyffrin Township Municipal Authority for $ 28,300 . The system receives untreated wastewater from area municipalities, which is conveyed to the Valley Forge Treatment Plant. The system consists of 49,000 linear feet of gravity sewers, pump stations, and force mains In November 2018, the Company entered into a purchase agreement to acquire the wastewater utility system assets of East Norriton Township, Pennsylvania, which serves approximately 4,950 customers for $ 21,000 . The purchase price for this pending acquisition is subject to certain adjustments at closing, and is subject to regulatory approval, including the final determination of the fair value of the rate base acquired. In July 2018, the Company entered into a purchase agreement to acquire the wastewater utility system assets of Cheltenham Township, Pennsylvania, which serves approximately 10,500 customers for $ 50,250 . The purchase price for this pending acquisition is subject to certain adjustments at closing, and is subject to regulatory approval, including the final determination of the fair value of the rate base acquired. In addition to the Company’s pending acquisitions in East Norriton and Cheltenham Townships, as part of the Company’s growth-through-acquisition strategy, the Company entered into purchase agreements to acquire the water or wastewater utility system assets of five municipalities for a total combined purchase price in cash of $ 46,450 which we plan to finance by the issuance of debt. The purchase prices for these acquisitions are subject to certain adjustments at closing, and the acquisitions are subject to regulatory approvals, including the final determination of the fair value of the rate base acquired. Closings for our remaining acquisitions (other than the Peoples Gas Acquisition), with the exception of East Norriton Township, are expected to occur by the end of 2019, subject to the timing of the individual regulatory approval processes. In total, these acquisitions (other than the Peoples Gas Acquisition) will add approximately 7,200 customers in three of the states in which the Company operates. |
Assets Held For Sale
Assets Held For Sale | 6 Months Ended |
Jun. 30, 2019 | |
Assets Held For Sale [Abstract] | |
Assets Held For Sale | Note 5 – Assets Held for Sale In the fourth quarter of 2018, the Company decided to market for sale a water system in Virginia that serves approximately 500 customers. This water system was reported as assets held for sale in the Company’s consolidated balance sheet, and in April 2019, the Company completed the sale for proceeds of $ 1,882 and recognized a gain on sale of $ 403 . In the first quarter of 2017, the Company decided to market for sale a water system in Texas that serves approximately 265 customers. This water system is reported as assets held for sale in the Company’s consolidated balance sheet, and the sale is expected to close in the fourth quarter of 2019. |
Capitalization
Capitalization | 6 Months Ended |
Jun. 30, 2019 | |
Capitalization [Abstract] | |
Capitalization | Note 6 – Capitalization Private Placement On March 29, 2019, the Company entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with Canada Pension Plan Investment Board (the “Investor”), pursuant to which the Company has agreed to issue and sell to the Investor in a private placement (the “Private Placement”) 21,661,095 newly issued shares of common stock, par value $ 0.50 per share (the “Common Stock”). The gross proceeds of the Private Placement are expected to amount to approximately $ 750,000 , less estimated expenses of $ 21,560 . The shares issued and sold to the Investor pursuant to the Private Placement were to be priced at the lower of (1) $ 34.62 , which represents a 4.5 % discount to the trailing 20 consecutive trading day volume weighted average price of the Common Stock ending on, and including, March 28, 2019, and (2) the volume weighted average price per share in the Company’s subsequent public offering of Common Stock to fund a portion of the Peoples Gas Acquisition. Based on the common stock offering noted below, the Private Placement was priced at $ 34.62 per share. The closing of the Private Placement is expected to occur concurrently with the closing of the Peoples Gas Acquisition, subject to certain closing conditions, including the closing of the Peoples Gas Acquisition, and the execution and delivery of a shareholder agreement between the Investor and the Company. The Investor has agreed to certain transfer restrictions for a period of 15 months from the closing date of the Peoples Gas Acquisition. The Stock Purchase Agreement contains customary representations, warranties and covenants of the Company and the Investor, and the parties have agreed to indemnify each other for losses related to breaches of their respective representations and warranties. Upon closing of the Private Placement, the Company has agreed to reimburse the Investor for reasonable out-of-pocket diligence expenses of up to $ 4,000 , subject to certain exceptions. Common Stock / Tangible Equity Unit Issuances On April 23, 2019, the Company issued $ 1,293,750 , less expenses of $ 29,625 , of its common stock and $ 690,000 , less expenses of $ 15,830 , of its tangible equity units (the “Units”), with a stated amount of $ 50 per unit. These issuances were part of the permanent financing to close the planned Peoples Gas Acquisition. The common stock was issued at $ 34.62 per share and thus the Private Placement noted above was priced at $ 34.62 per share. Each Unit consists of a prepaid stock purchase contract and an amortizing note due April 30, 2022, each issued by the Company. Unless earlier settled or redeemed, each stock purchase contract will automatically settle on April 30, 2022 (subject to postponement in limited circumstances) for between 1.1790 and 1.4442 shares of the Company’s common stock, subject to adjustment, based upon the applicable market value of the common stock, as described in the final prospectus supplement relating to the Units. The amortizing notes have an initial principal amount of $ 8.62909 , or $ 119,081 in aggregate, and bear interest at a rate of 3.00 % per year, and pay equal quarterly cash installments of $ 0.75000 per amortizing note (except for the July 30, 2019 installment payment, which was $ 0.80833 per amortizing note), that will constitute a payment of interest and a partial repayment of principal, and which cash payment in the aggregate will be equivalent to 6.00 % per year with respect to each $ 50 stated amount of the Units. The amortizing notes represent unsecured senior obligations of the Company. The issuance of the common stock and the Units (including the component stock purchase contracts and amortizing notes) were separate public issuances made by means of separate prospectus supplements pursuant to the Company’s universal “pay as you go” shelf registration statement, filed with the SEC in February 2018, which allows for the potential future offer and sale by us, from time to time, in one or more public offerings, of an indeterminate amount of the Company’s common stock, preferred stock, debt securities, and other securities specified therein at indeterminate prices. The Company recorded the issuance of the purchase contract portion of the Units as additional paid-in-capital of $ 570,919 , less allocable issuance costs of $ 13,082 , in our financial statements. The Company recorded the amortizing notes portion of the Units of $ 119,081 as long-term debt and recorded allocable issuance costs of $ 2,748 as debt issuance costs. Long-term Debt On April 26, 2019, the Company issued $ 900,000 of long-term debt (the “Senior Notes”), less expenses of $ 7,324 , of which $ 400,000 is due in 2029 , and $ 500,000 is due in 2049 with interest rates of 3.566 % and 4.276 %, respectively. The issuance of the Senior Notes was not conditioned upon the consummation of the Peoples Gas Acquisition; however, if (1) the Peoples Gas Acquisition has not been consummated on or prior to April 22, 2020, (2) on or prior to the April 22, 2020 and prior to the consummation of the Peoples Gas Acquisition, the Acquisition Agreement is terminated or (3) prior to the consummation of the Peoples Gas Acquisition, the Company otherwise publicly announces that the acquisition will not be consummated, then the Company will be required to redeem all outstanding Senior Notes on a special mandatory redemption date at a special mandatory redemption price equal to 101 % of the aggregate principal amount of the notes, plus accrued and unpaid interest thereon, if any, to, but excluding, the special mandatory redemption date. The Company used the net proceeds from the issuance of Senior Notes, together with the net proceeds from the common stock offering and tangible equity unit offering noted above, as well as the proceeds from the Private Placement of common stock noted above, to (1) secure funding for the planned Peoples Gas Acquisition, (2) complete the redemption of $ 313,500 aggregate principal amount of certain of the Company’s outstanding notes noted below, (3) pay related costs and expenses, and (4) for general corporate purposes. Upon consummation of the Private Placement, the permanent financing for the Peoples Gas Acquisition will be complete. On May 18, 2019, the Company redeemed $ 313,500 of the Company’s outstanding notes (the “Company Debt Refinancing”) that had maturities ranging from 2019 - 2037 and interest rates ranging from 3.57 - 5.83 %. Additionally, the Company Debt Refinancing was subject to a make whole payment of $ 25,237 . During the second quarter of 2019, $ 18,935 of this payment was expensed and is presented in the consolidated statements of operations on the line item “loss on debt extinguishment.” The balance of the payment, or $ 6,302 , was deferred as it represents an amount by which the Company expects to receive prospective rate recovery. If for any reason the Peoples Gas Acquisition is not consummated, the Company intends to use the net proceeds from these financings, after the special mandatory redemption noted above, for general corporate purposes, which may include the redemption of certain of the Company’s outstanding notes, repurchases of the Company’s common stock, debt repayment, capital expenditures, and investments. In May 2019, Aqua Pennsylvania issued $ 125,000 of first mortgage bonds, of which $ 75,000 is due in 2049 , $ 25,000 is due in 2054 , and $ 25,000 is due in 2059 with interest rates of 4.02 %, 4.07 %, and 4.12 %, respectively. The proceeds from these bonds were used to repay existing indebtedness and for general corporate purposes. Additionally, Aqua Pennsylvania committed to the issuance of $ 175,000 of first mortgage bonds, contingent upon receiving approval from the Pennsylvania Public Utility Commission, of which $ 50,000 is due in 2054 , $ 75,000 is due in 2058 , and $ 50,000 is due in 2059 with interest rates of 4.09 %, 4.13 %, and 4.14 %, respectively, that will be issued in September 2019. |
Interest Rate Swap Agreements
Interest Rate Swap Agreements | 6 Months Ended |
Jun. 30, 2019 | |
Interest Rate Swap Agreements [Abstract] | |
Interest Rate Swap Agreements | Note 7 – Interest Rate Swap Agreements In October 2018, the Company entered into interest rate swap agreements to mitigate interest rate risk associated with an anticipated $ 850,000 of future debt issuances to fund a portion of the Peoples Gas Acquisition and refinance a portion of the Company’s borrowings. On April 24, 2019, the Company settled the interest rate swap agreements upon issuance of $ 900,000 of long-term debt to be used to finance a portion of the purchase price of the Peoples Gas Acquisition and redeem $ 313,500 of the Company’s existing debt. The settlement resulted in a payment by the Company of $ 83,520 . The interest rate swaps did not qualify for hedge accounting and any changes in the fair value of the swaps was included in our earnings. The interest rate swaps were classified as financial derivatives used for non-trading activities. Other than the interest rate swaps, the Company had no other derivative instruments. The Company recorded the fair value of the interest rate swaps by discounting the future net cash flows associated with the debt issuance and recognized either an asset or liability at the balance sheet date. The following table provides a summary of the amounts recognized in earnings for our interest rate swap agreements: Amount of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Three Months Ended June 30, Six Months Ended June 30, Location of Gain (Loss) Recognized 2019 2019 Derivatives not designated as hedging instrument: Interest rate swaps Other income (expense) $ 11,040 $ ( 23,742 ) |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Financial Instruments [Abstract] | |
Financial Instruments | Note 8 – Financial Instruments The Company follows the FASB’s accounting guidance for fair value measurements and disclosures, which defines fair value and establishes a framework for using fair value to measure assets and liabilities. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives 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 are as follows: Level 1: unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access; Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted market prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in non-active markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or Level 3: inputs that are unobservable and significant to the fair value measurement. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. There have been no changes in the valuation techniques used to measure fair value, or asset or liability transfers between the levels of the fair value hierarchy for the quarter ended June 30, 2019. Financial instruments are recorded at carrying value in the financial statements and approximate fair value as of the dates presented. The fair value of these instruments is disclosed below in accordance with current accounting guidance related to financial instruments. The fair value of loans payable is determined based on its carrying amount and utilizing Level 1 methods and assumptions. As of June 30, 2019 and December 31, 2018, the carrying amount of the Company’s loans payable was $ 6,076 and $ 15,449 , respectively, which equates to their estimated fair value. The fair value of the interest rate swap agreements was determined by discounting the future net cash flows utilizing level 2 methods and assumptions. As of December 31, 2018, the fair value of the Company’s interest rate swap agreements, which were settled in April 2019, represented a liability of $ 59,779 . The fair value of cash and cash equivalents, which is comprised of uninvested cash and the proceeds from the April 2019 issuances of common stock, tangible equity units, and long-term debt for the planned Peoples Gas Acquisition, which are held in an interest- bearing account, is determined based on Level 1 methods and assumptions. As of June 30, 2019, and December 31, 2018, the carrying amounts of the Company's cash and cash equivalents was $ 1,974,076 and $ 3,627 , respectively, which equates to their fair value. The Company’s assets underlying the deferred compensation and non-qualified pension plans are determined by the fair value of mutual funds, which are based on quoted market prices from active markets utilizing Level 1 methods and assumptions. As of June 30, 2019, and December 31, 2018, the carrying amount of these securities was $ 22,671 and $ 20,388 , respectively, which equates to their fair value, and is reported in the consolidated balance sheet in deferred charges and other assets. Unrealized gain and losses on equity securities held in conjunction with our non-qualified pension plan is as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net gain (loss) recognized during the period on equity securities $ 60 $ 19 $ 193 $ ( 2 ) Less: net gain / loss recognized during the period on equity securities sold during the period - - - - Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date $ 60 $ 19 $ 193 $ ( 2 ) The net gain recognized on equity securities is presented on the consolidated statements of operations on the line item “Other.” The carrying amounts and estimated fair values of the Company’s long-term debt is as follows: June 30, December 31, 2019 2018 Carrying amount $ 3,000,467 $ 2,563,660 Estimated fair value 3,234,787 2,588,086 The fair value of long-term debt has been determined by discounting the future cash flows using current market interest rates for similar financial instruments of the same duration utilizing Level 2 methods and assumptions. The Company’s customers’ advances for construction have a carrying value of $ 102,801 as of June 30, 2019, and $ 93,343 as of December 31, 2018. Their relative fair values cannot be accurately estimated because future refund payments depend on several variables, including new customer connections, customer consumption levels, and future rates. Portions of these non-interest-bearing instruments are payable annually through 2029 and amounts not paid by the respective contract expiration dates become non-refundable. The fair value of these amounts would, however, be less than their carrying value due to the non-interest-bearing feature. |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Net Income Per Common Share [Abstract] | |
Net Income Per Common Share | Note 9 – Net Income per Common Share Basic net income per common share is based on the weighted average number of common shares outstanding and the minimum number of shares to be issued upon settlement of the stock purchase contracts issued under the tangible equity units. Diluted net income per common share is based on the weighted average number of common shares outstanding, potentially dilutive shares, and the expected number of shares to be issued upon settlement of the stock purchase contracts issued under the tangible equity units. The dilutive effect of employee stock-based compensation is included in the computation of diluted net income per common share. The dilutive effect of stock-based compensation is calculated using the treasury stock method and expected proceeds upon exercise or issuance of the stock-based compensation. The treasury stock method assumes that the proceeds from stock-based compensation are used to purchase the Company’s common stock at the average market price during the period. The following table summarizes the shares, in thousands, used in computing basic and diluted net income per common share: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Average common shares outstanding during the period for basic computation 219,055 177,901 198,747 177,852 Dilutive effect of tangible equity units 423 - 212 - Dilutive effect of employee stock-based compensation 312 372 344 447 Average common shares outstanding during the period for diluted computation 219,790 178,273 199,303 178,299 For the three months ended June 30, 2019 and the six months ended June 30, 2019 and 2018, all of the Company’s employee stock options were included in the calculations of diluted net income per share as the calculated cost to exercise the stock options was less than the average market price of the Company’s common stock during these periods. For the three months ended June 30, 2018, employee stock options to purchase 159,244 shares of common stock were excluded from the calculation of diluted net income per share as the calculated cost to exercise the stock options was greater than the average market price of the Company’s common stock during this period. For the three and six months ended June 30, 2019, the average common shares outstanding during the period for basic computation includes the impact of 12,336,745 and 6,202,452 shares, respectively, based on the minimum number of shares to be issued in April 2022 upon settlement of the stock purchase contracts issued in April 2019 under the tangible equity units. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 10 – Stock-based Compensation Under the Company’s 2009 Omnibus Equity Compensation Plan, as amended as of February 27, 2014 (the “2009 Plan”), as approved by the Company’s shareholders to replace the 2004 Equity Compensation Plan (the “2004 Plan”), stock options, stock units, stock awards, stock appreciation rights, dividend equivalents, and other stock-based awards may be granted to employees, non-employee directors, and consultants and advisors. No further grants may be made under the 2004 Plan. The 2009 Plan authorizes 6,250,000 shares for issuance under the plan. A maximum of 3,125,000 shares under the 2009 Plan may be issued pursuant to stock awards, stock units and other stock-based awards, subject to adjustment as provided in the 2009 Plan. During any calendar year, no individual may be granted (i) stock options and stock appreciation rights under the 2009 Plan for more than 500,000 shares of Company stock in the aggregate or (ii) stock awards, stock units or other stock-based awards under the 2009 Plan for more than 500,000 shares of Company stock in the aggregate, subject to adjustment as provided in the 2009 Plan. Awards to employees and consultants under the 2009 Plan are made by a committee of the Board of Directors of the Company, except that with respect to awards to the Chief Executive Officer, the committee recommends those awards for approval by the non-employee directors of the Board of Directors. In the case of awards to non-employee directors, the Board of Directors makes such awards. At June 30, 2019, 2,628,625 shares were still available for issuance under the 2009 Plan. Performance Share Units – A performance share unit (“PSU”) represents the right to receive a share of the Company’s common stock if specified performance goals are met over the three-year performance period specified in the grant, subject to exceptions through the respective vesting period, which is generally three year s. Each grantee is granted a target award of PSUs, and may earn between 0 % and 200 % of the target amount depending on the Company’s performance against the performance goals. The following table provides compensation costs for stock-based compensation related to PSUs: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Stock-based compensation within operations and maintenance expenses $ 853 $ 1,339 $ 1,850 $ 2,198 Income tax benefit 239 373 516 614 The following table summarizes the PSU transactions for the six months ended June 30, 2019: Number Weighted of Average Share Units Fair Value Nonvested share units at beginning of period 443,410 $ 27.20 Granted - - Performance criteria adjustment ( 64,259 ) 33.42 Forfeited ( 3,964 ) 33.62 Share units issued ( 89,324 ) 52.39 Nonvested share units at end of period 285,863 17.84 A portion of the fair value of PSUs was estimated at the grant date based on the probability of satisfying the market-based conditions using the Monte Carlo valuation method, which assesses probabilities of various outcomes of market conditions. The other portion of the fair value of the PSUs is based on the fair market value of the Company’s stock at the grant date, regardless of whether the market-based condition is satisfied. The per unit weighted-average fair value at the date of grant for PSUs granted during the six months ended June 30, 2018 was $ 37.65 . The Company did not grant PSUs for the six months ended June 30, 2019. The fair value of each PSU grant is amortized monthly into compensation expense on a straight-line basis over their respective vesting periods, generally 36 months. The accrual of compensation costs is based on the Company’s estimate of the final expected value of the award, and is adjusted as required for the portion based on the performance-based condition. The Company assumes that forfeitures will be minimal, and recognizes forfeitures as they occur, which results in a reduction in compensation expense. As the payout of the PSUs includes dividend equivalents, no separate dividend yield assumption is required in calculating the fair value of the PSUs. The recording of compensation expense for PSUs has no impact on net cash flows. Restricted Stock Units – A restricted stock unit (“RSU”) represents the right to receive a share of the Company’s common stock. RSUs are eligible to be earned at the end of a specified restricted period, which is generally three year s, beginning on the date of grant. The Company assumes that forfeitures will be minimal, and recognizes forfeitures as they occur, which results in a reduction in compensation expense. As the payout of the RSUs includes dividend equivalents, no separate dividend yield assumption is required in calculating the fair value of the RSUs. The following table provides the compensation cost and income tax benefit for stock-based compensation related to RSUs: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Stock-based compensation within operations and maintenance expenses $ 412 $ 355 $ 837 $ 706 Income tax benefit 116 100 236 201 The following table summarizes the RSU transactions for the six months ended June 30, 2019: Number Weighted of Average Stock Units Fair Value Nonvested stock units at beginning of period 130,085 $ 33.13 Granted 55,686 36.01 Stock units vested and issued ( 40,178 ) 32.88 Forfeited ( 2,327 ) 35.17 Nonvested stock units at end of period 143,266 34.29 The per unit weighted-average fair value at the date of grant for RSUs granted during the six months ended June 30, 2019 and 2018 was $ 36.01 and $ 34.91 , respectively. Stock Options – A stock option represents the option to purchase a number of shares of common stock of the Company as specified in the stock option grant agreement at the exercise price per share as determined by the closing market price of our common stock on the grant date. Stock options are exercisable in installments of 33 % annually, starting one year from the grant date and expire 10 years from the grant date, subject to satisfaction of designated performance goals. The fair value of each stock option is amortized into compensation expense using the graded-vesting method, which results in the recognition of compensation costs over the requisite service period for each separately vesting tranche of the stock options as though the stock options were, in substance, multiple stock option grants. The following table provides the compensation cost and income tax benefit for stock-based compensation related to stock options: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Stock-based compensation within operations and maintenance expenses $ 661 $ 154 $ 988 $ 248 Income tax benefit 186 42 278 101 The fair value of options was estimated at the grant date using the Black-Scholes option-pricing model. The following assumptions were used in the application of this valuation model: 2019 2018 Expected term (years) 5.47 5.46 Risk-free interest rate 2.53 % 2.72 % Expected volatility 17.7 % 17.2 % Dividend yield 2.44 % 2.37 % Grant date fair value per option $ 5.25 $ 5.10 Historical information was the principal basis for the selection of the expected term and dividend yield. The expected volatility is based on a weighted-average combination of historical and implied volatilities over a time period that approximates the expected term of the option. The risk-free interest rate was selected based upon the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The following table summarizes stock option transactions for the six months ended June 30, 2019: Weighted Weighted Average Average Aggregate Exercise Remaining Intrinsic Shares Price Life (years) Value Outstanding at beginning of period 422,972 $ 25.97 Granted 769,115 35.94 Forfeited ( 18,120 ) 35.45 Expired / Cancelled ( 397 ) 32.05 Exercised ( 98,627 ) 15.68 Outstanding at end of period 1,074,943 $ 33.89 8.8 $ 8,044 Exercisable at end of period 186,931 $ 25.83 5.5 $ 2,904 Stock Awards – Stock awards represent the issuance of the Company’s common stock, without restriction. The issuance of stock awards results in compensation expense which is equal to the fair market value of the stock on the grant date, and is expensed immediately upon grant. The following table provides the compensation cost and income tax benefit for stock-based compensation related to stock awards: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Stock-based compensation within operations and maintenance expenses $ 202 $ 140 $ 382 $ 280 Income tax benefit 58 41 110 81 The following table summarizes stock award transactions for the six months ended June 30, 2019: Number Weighted of Average Stock Awards Fair Value Nonvested stock awards at beginning of period - $ - Granted 9,854 38.82 Vested ( 9,854 ) 38.82 Nonvested stock awards at end of period - - The per unit weighted-average fair value at the date of grant for stock awards granted during the six months ended June 30, 2019 and 2018 was $ 38.82 and $ 34.58 , respectively. |
Pension Plans And Other Postret
Pension Plans And Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Pension Plans And Other Postretirement Benefits [Abstract] | |
Pension Plans And Other Postretirement Benefits | Note 11 – Pension Plans and Other Postretirement Benefits The Company maintains a qualified defined benefit pension plan (the “Pension Plan”), a nonqualified pension plan, and other postretirement benefit plans for certain of its employees. The net periodic benefit cost is based on estimated values and an extensive use of assumptions about the discount rate, expected return on plan assets, the rate of future compensation increases received by the Company’s employees, mortality, turnover, and medical costs. The following tables provide the components of net periodic benefit cost: Pension Benefits Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Service cost $ 680 $ 812 $ 1,360 $ 1,625 Interest cost 2,954 2,874 5,908 5,748 Expected return on plan assets ( 3,818 ) ( 4,553 ) ( 7,636 ) ( 9,106 ) Amortization of prior service cost 155 132 310 264 Amortization of actuarial loss 1,982 1,823 3,964 3,646 Net periodic benefit cost $ 1,953 $ 1,088 $ 3,906 $ 2,177 Other Postretirement Benefits Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Service cost $ 205 $ 262 $ 410 $ 525 Interest cost 750 708 1,500 1,416 Expected return on plan assets ( 621 ) ( 677 ) ( 1,242 ) ( 1,353 ) Amortization of prior service cost ( 116 ) ( 127 ) ( 232 ) ( 255 ) Amortization of actuarial loss 166 296 332 591 Net periodic benefit cost $ 384 $ 462 $ 768 $ 924 The components of net periodic benefit cost other than service cost are presented on the consolidated statements of operations on the line item “Other.” The Company made cash contributions of $ 6,479 to its Pension Plan during the first six months of 2019 and intends to make additional cash contributions of $ 1,743 to the Pension Plan during the remainder of 2019. |
Water And Wastewater Rates
Water And Wastewater Rates | 6 Months Ended |
Jun. 30, 2019 | |
Water And Wastewater Rates [Abstract] | |
Water And Wastewater Rates | Note 12 – Water and Wastewater Rates In August 2018, the Company’s operating subsidiary in Pennsylvania filed for a base rate increase in water and wastewater rates for its customers. In May 2019 the Company received an order from the Pennsylvania Public Utility Commission, resulting in an increase of $ 47,000 in annual revenue, and new rates went into effect on May 24, 2019. The rates in effect at the time of the filing also included $ 29,493 in Distribution System Improvement Charges (“DSIC”), which was 7.5 % above prior base rates. Consequently, the aggregate base rates increased by $ 76,493 since the last base rate increase and the DSIC was reset to zero . In December 2018, the Company’s operating subsidiary in New Jersey filed for a base rate increase in water rates for its customers. In May 2019, the Company received an order from the New Jersey Board of Public Utilities, resulting in an increase of $ 5,000 in annual revenues, and new rates went into effect on June 1, 2019. In addition to the Pennsylvania and New Jersey rate awards noted above, during the first six months of 2019, the Company’s operating divisions in Ohio were granted base rate increases designed to increase total operating revenues on an annual basis by $ 974 . Further, during the first six months of 2019, the Company’s operating divisions in Illinois, Ohio, and Pennsylvania received approval to bill infrastructure rehabilitation surcharges designed to increase total operating revenues on an annual basis by $ 3,931 . |
Taxes Other Than Income Taxes
Taxes Other Than Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Taxes Other Than Income Taxes [Abstract] | |
Taxes Other Than Income Taxes | Note 13 – Taxes Other than Income Taxes The following table provides the components of taxes other than income taxes: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Property $ 6,929 $ 6,775 $ 13,395 $ 13,524 Gross receipts, excise and franchise 3,538 3,789 6,757 7,053 Payroll 2,291 2,180 5,772 5,455 Regulatory assessments 748 627 1,495 1,254 Pumping fees 1,272 1,424 2,241 2,415 Other 90 34 177 95 Total taxes other than income $ 14,868 $ 14,829 $ 29,837 $ 29,796 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Information [Abstract] | |
Segment Information | Note 14 – Segment Information The Company has ten operating segments and one reportable segment. The Regulated segment, the Company’s single reportable segment, is comprised of eight operating segments representing its water and wastewater regulated utility companies which are organized by the states where the Company provides water and wastewater services. These operating segments are aggregated into one reportable segment because each of these operating segments has the following similarities: economic characteristics, nature of services, production processes, customers, water distribution or wastewater collection methods, and the nature of the regulatory environment. Two operating segments are included within the Other category below. These segments are not quantitatively significant and are comprised of Aqua Infrastructure and Aqua Resources. Aqua Infrastructure provides non-utility raw water supply services for firms in the natural gas drilling industry. Aqua Resources provides water and wastewater service through operating and maintenance contracts with municipal authorities and other parties close to its utility companies’ service territories; and offers, through a third-party, water and sewer service line protection solutions and repair services to households. In addition to these segments, Other is comprised of other business activities not included in the reportable segment, including corporate costs that have not been allocated to the Regulated segment and intersegment eliminations. Corporate costs include general and administrative expenses, and interest expense. The following table presents information about the Company’s reportable segment: Three Months Ended Three Months Ended June 30, 2019 June 30, 2018 Regulated Other Consolidated Regulated Other Consolidated Operating revenues $ 218,006 $ 886 $ 218,892 $ 210,824 $ 1,036 $ 211,860 Operations and maintenance expense 74,082 12,363 86,445 73,047 468 73,515 Depreciation 39,472 78 39,550 36,603 10 36,613 Amortization ( 3,060 ) 140 ( 2,920 ) 103 46 149 Operating income (loss) 93,112 ( 12,163 ) 80,949 86,672 82 86,754 Interest expense, net 24,067 ( 758 ) 23,309 21,756 1,967 23,723 Allowance for funds used during construction 3,611 - 3,611 2,577 - 2,577 Equity earnings in joint venture - 1,240 1,240 - 911 911 Provision for income taxes (benefit) 1,780 ( 3,951 ) ( 2,171 ) ( 147 ) ( 220 ) ( 367 ) Net income (loss) 69,579 ( 14,676 ) 54,903 67,877 ( 1,287 ) 66,590 Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Regulated Other Consolidated Regulated Other Consolidated Operating revenues $ 418,226 $ 1,798 $ 420,024 $ 404,331 $ 1,876 $ 406,207 Operations and maintenance expense 148,420 17,339 165,759 144,350 3,111 147,461 Depreciation 78,535 89 78,624 72,561 19 72,580 Amortization ( 2,864 ) 280 ( 2,584 ) 191 88 279 Operating income (loss) 165,765 ( 17,377 ) 148,388 158,730 ( 2,639 ) 156,091 Interest expense, net 47,725 3,434 51,159 43,464 3,730 47,194 Allowance for funds used during construction 7,667 - 7,667 5,444 - 5,444 Equity earnings in joint venture - 1,783 1,783 - 1,293 1,293 Provision for income taxes (benefit) 2,731 ( 13,072 ) ( 10,341 ) ( 790 ) ( 1,708 ) ( 2,498 ) Net income (loss) 121,520 ( 49,693 ) 71,827 121,904 ( 4,475 ) 117,429 Capital expenditures 269,171 - 269,171 216,614 - 216,614 June 30, December 31, 2019 2018 Total assets: Regulated $ 7,043,679 $ 6,807,960 Other 2,136,671 156,536 Consolidated $ 9,180,350 $ 6,964,496 |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note 15 – Commitments and Contingencies The Company is routinely involved in various disputes, claims, lawsuits and other regulatory and legal matters, including both asserted and unasserted legal claims, in the ordinary course of business. The status of each such matter, referred to herein as a loss contingency, is reviewed and assessed in accordance with applicable accounting rules regarding the nature of the matter, the likelihood that a loss will be incurred, and the amounts involved. As of June 30, 2019, the aggregate amount of $ 17,929 is accrued for loss contingencies and is reported in the Company’s consolidated balance sheet as other accrued liabilities and other liabilities. These accruals represent management’s best estimate of probable loss (as defined in the accounting guidance) for loss contingencies or the low end of a range of losses if no single probable loss can be estimated. For some loss contingencies, the Company is unable to estimate the amount of the probable loss or range of probable losses. While the final outcome of these loss contingencies cannot be predicted with certainty, and unfavorable outcomes could negatively impact the Company, at this time in the opinion of management, the final resolution of these matters are not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. Further, the Company has insurance coverage for certain of these loss contingencies, and as of June 30, 2019, estimates that approximately $ 6,526 of the amount accrued for these matters are probable of recovery through insurance, which amount is also reported in the Company’s consolidated balance sheet as deferred charges and other assets, net. Although the results of legal proceedings cannot be predicted with certainty, there are no pending legal proceedings to which the Company or any of its subsidiaries is a party or to which any of its properties is the subject that are material or are expected to have a material effect on the Company’s financial position, results of operations, or cash flows. In addition to the aforementioned loss contingencies, the Company self-insures its employee medical benefit program, and maintains stop-loss coverage to limit the exposure arising from these claims. The Company’s reserve for these claims totaled $ 1,515 at June 30, 2019 and represents a reserve for unpaid claim costs, including an estimate for the cost of incurred but not reported claims. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | Note 16 – Income Taxes During the six months ended June 30, 2019, the Company’s Federal net operating loss (“NOL”) carryforward increased by $ 33,928 . In addition, during the six months ended June 30, 2019, the Company’s state NOL carryforward increased by $ 67,583 . As of June 30, 2019, the balance of the Company’s Federal NOL was $ 44,763 . The Company believes its Federal NOL carryforward is more likely than not to be recovered and requires no valuation allowance. As of June 30, 2019, the balance of the Company’s gross state NOL was $ 717,868 , a portion of which is offset by a valuation allowance because the Company does not believe the state NOLs are more likely than not to be realized. The Company’s Federal and state NOL carryforwards begin to expire in 2032 and 2023 , respectively. The Company’s Federal and state NOL carryforwards are reduced by an unrecognized tax position, on a gross basis, of $ 68,978 and $ 85,657 , respectively. The amounts of the Company’s Federal and state NOL carryforwards prior to being reduced by the unrecognized tax positions were $ 113,741 and $ 803,525 respectively. The Company records its unrecognized tax benefit as a reduction to its deferred income tax liability. As of June 30, 2019, the total gross unrecognized tax benefit was $ 17,562 . As a result of the regulatory treatment afforded for qualifying infrastructure improvements in Pennsylvania, $ 28,058 , if recognized, would affect the Company’s effective tax rate. At December 31, 2018, the Company had unrecognized tax benefits of $ 17,792 . Accounting rules for uncertain tax positions specify that tax positions for which the timing of resolution is uncertain should be classified as long-term liabilities. Judgment is required in evaluating the Company’s uncertain tax positions and determining the provision for income taxes. Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. Although the timing of income tax audit resolutions and negotiations with taxing authorities is highly uncertain, the Company does not anticipate a significant change to the total amount of unrecognized income tax benefits within the next 12 months. As of December 31, 2017, the Company had provisionally estimated that $ 175,108 of deferred income tax liabilities for our Pennsylvania subsidiary, Aqua Pennsylvania, will be a regulatory liability as a result of the accounting effect of the Tax Cuts and Jobs Acts (the “TCJA”). In May 2018, the Pennsylvania Public Utility Commission (“PA PUC”) issued an order that set forth the requirements for utilities to either immediately initiate the refund or otherwise address the impacts of the TCJA in the utilities’ next rate case. Aqua Pennsylvania was included in the rate filing group of utilities as the Company filed a base rate case in August 2018, during which it expected the PA PUC to address the effects of the TCJA within the base rate case filing. Additionally, the PA PUC ordered that all rates charged by utilities, including those billed by Aqua Pennsylvania since January 1, 2018, are temporary and subject to refund pending the outcome of its review of the effects of the TCJA within the next base rate case. In February 2019, Aqua Pennsylvania filed a settlement for this base rate case, and on March 11, 2019, the administrative law judges issued a recommended decision approving the settlement on March 11, 2019. In May 2019 a final order was issued from the PA PUC affirming the Company’s regulatory liability of $ 175,108 and authorizing the Company to implement an average rate assumption method to reduce the regulatory liability over the book lives beginning in June 2019 to reflect the fact that the benefit from the excess accumulated deferred taxes is now reflected in base rates. The Company’s regulated operations accounting for income taxes are impacted by the FASB’s accounting guidance for regulated operations. Reductions in accumulated deferred income tax balances due to the reduction in the Federal corporate income tax rates to 21 % under the provisions of the TCJA will result in amounts previously collected from utility customers for these deferred taxes to be refundable to such customers, generally through reductions in future rates. The TCJA includes provisions that stipulate how these excess deferred taxes related to certain accelerated tax depreciation deduction benefits are to be passed back to customers. Our state regulatory commissions have or are in the process of issuing procedural orders directing how the tax law changes are to be reflected in our utility customer rates. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 17 – Leases The Company leases land, office facilities, office equipment, and vehicles for use in its operations, which are accounted for as operating leases. Leases with a remaining term of 12 months or less are not recorded on the balance sheet; rather, lease expense is recognized on a straight-line basis over the lease term. Our leases have remaining lives of 1 year to 76 years. Some of the Company’s leases can be extended on a month-to-month basis, which allow us to terminate the lease at any given month without penalty while others include options to extend the leases for up to 50 years. The renewal of a month-to-month lease is at our sole discretion. The Company accounts for lease and non-lease components of lease arrangements separately. For calculating lease liabilities, we may deem lease terms to include options to extend or terminate the lease when it’s reasonably certain that we will exercise that option. The Company’s lease agreements do not contain significant residual value guarantees, restrictions or covenants. Lease liabilities and corresponding right-of-use assets are recorded based on the present value of the lease payments over the expected lease term, including leases with variable payments that are based on a market rate or an index. All other variable payments are expensed as incurred. Since the Company’s lease agreements do not provide an implicit interest rate, we utilize our incremental borrowing rate to determine the discount rate used to present value the lease payments. For the Company’s regulated utility operations, we utilize the FASB’s accounting guidance for leases for entities with regulated operations, which allows, for rate-making purposes, a lease to be accounted for as an operating lease even though the lease may be classified as a finance lease, since the amount of the lease payment is included in allowable costs as rental expense in the period it covers. Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Components of lease expense were as follows: Operating lease cost $ 530 $ 1,105 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 355 $ 1,293 June 30, 2019 Supplemental balance sheet information related to leases was as follows: Operating leases: Operating lease right-of-use assets $ 13,164 Other accrued liabilities $ 1,251 Operating lease liabilities 11,913 Total operating lease liabilities $ 13,164 June 30, 2019 Weighted average remaining lease term: Operating leases 27 years Weighted average discount rate: Operating leases 4.08 % Maturities of operating lease liabilities and a reconciliation of the operating lease liabilities reported on our Consolidated Balance Sheets as of June 30, 2019 are as follows: Operating Leases 2019 $ 618 2020 1,597 2021 1,374 2022 1,145 2023 770 Thereafter 16,430 Total operating lease payments $ 21,934 Total operating lease payments $ 21,934 Less operating lease liabilities 13,164 Present value adjustment $ 8,770 The future annual minimum lease payments due for the Company’s leases as of December 31, 2018 were as follows: 2019 $ 2,221 2020 1,682 2021 1,443 2022 1,221 2023 848 Thereafter 16,170 Total $ 23,585 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 18 – Recent Accounting Pronouncements Pronouncements to be adopted upon the effective date: In August 2018, the FASB issued updated accounting guidance on accounting for cloud computing arrangements. The updated guidance requires entities that are customers in cloud computing arrangements to defer implementation costs if they would be capitalized by the entity in software licensing arrangements under the internal-use software guidance. The guidance may be applied retrospectively or prospectively to implementation costs incurred after the date of adoption. The updated accounting guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company is evaluating the requirements of the updated guidance to determine the impact of adoption. In August 2018, the FASB issued updated accounting guidance, which modifies the disclosures required for defined benefit pension and other postretirement benefit plans. The modifications in this update remove disclosures that are no longer considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The updated accounting guidance is effective for fiscal years ending after December 15, 2020, with early adoption available. The Company is evaluating the requirements of the updated guidance to determine the impact of adoption. In August 2018, the FASB issued updated accounting guidance, which modifies the disclosure requirements on fair value measurements. The modifications in this update eliminates, amends, and adds disclosure requirements for fair value measurements, which is expected to reduce costs for preparers while providing more decision-useful information for financial statement users. The updated accounting guidance is effective for fiscal years ending after December 15, 2019, with early adoption available. The Company is evaluating the requirements of the updated guidance to determine the impact of adoption. In June 2016, the FASB issued updated accounting guidance on accounting for impairments of financial instruments, including trade receivables, which requires companies to estimate expected credit losses on trade receivables over their contractual life. Historically, companies reserve for expected credit losses by applying historical loss percentages to respective aging categories. Under the updated accounting guidance, companies will use a forward-looking methodology that incorporates lifetime expected credit losses, which will result in an allowance for expected credit losses for receivables that are either current or not yet due, which historically have not been reserved for. The updated accounting guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption available. The Company is evaluating the requirements of the updated guidance to determine the impact of adoption. Pronouncements adopted during the year: In February 2016, the FASB issued updated accounting guidance on accounting for leases, which requires lessees to establish a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. For income statement purposes, leases will be classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. The updated accounting guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption available. On January 1, 2019, the Company adopted the updated guidance as required using the modified retrospective approach, which provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a full retrospective approach. Further, we elected the package of practical expedients permitted under the transition guidance within the updated guidance, which among other things, allowed the Company to carry forward its historical lease classification. The Company also elected the practical expedient related to land easements, allowing the Company to carry forward its accounting treatment for land easements on existing agreements. Adoption of the new guidance resulted in the recording, on the Company’s consolidated balance sheet, of a right-of-use asset and lease liability of $ 14,028 as of January 1, 2019, and there was no cumulative impact adjustment to retained earnings for prior periods accounted for under the previous lease guidance. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Schedule Of Disaggregation Of Revenue | Three Months Ended Three Months Ended June 30, 2019 June 30, 2018 Water Revenues Wastewater Revenues Other Revenues Water Revenues Wastewater Revenues Other Revenues Revenues from contracts with customers: Residential $ 126,550 $ 20,263 $ - $ 122,530 $ 17,583 $ - Commercial 35,155 3,797 - 33,456 2,975 - Fire protection 8,260 - - 7,970 - - Industrial 7,456 487 - 7,309 498 - Other water 11,038 - - 14,220 - - Other wastewater - 1,423 - - 1,920 - Other utility - - 3,362 - - 2,319 Revenues from contracts with customers 188,459 25,970 3,362 185,485 22,976 2,319 Alternative revenue program 317 ( 102 ) - ( 120 ) 164 - Other and eliminations - - 886 - - 1,036 Consolidated $ 188,776 $ 25,868 $ 4,248 $ 185,365 $ 23,140 $ 3,355 Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Water Revenues Wastewater Revenues Other Revenues Water Revenues Wastewater Revenues Other Revenues Revenues from contracts with customers: Residential $ 240,597 $ 40,210 $ - $ 236,367 $ 35,115 $ - Commercial 65,446 7,364 - 63,798 5,863 - Fire protection 16,338 - - 15,908 - - Industrial 14,321 968 - 13,669 961 - Other water 23,845 - - 25,241 - - Other wastewater - 2,819 - - 2,711 - Other utility - - 6,252 - - 4,654 Revenues from contracts with customers 360,547 51,361 6,252 354,983 44,650 4,654 Alternative revenue program 281 ( 215 ) - ( 120 ) 164 - Other and eliminations - - 1,798 - - 1,876 Consolidated $ 360,828 $ 51,146 $ 8,050 $ 354,863 $ 44,814 $ 6,530 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill [Abstract] | |
Schedule Of Goodwill | Regulated Segment Other Consolidated Balance at December 31, 2018 $ 47,885 $ 4,841 $ 52,726 Reclassification to utility plant acquisition adjustment ( 4 ) - ( 4 ) Balance at June 30, 2019 $ 47,881 $ 4,841 $ 52,722 |
Interest Rate Swap Agreements (
Interest Rate Swap Agreements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Interest Rate Swap Agreements [Abstract] | |
Summary Of Amounts Recognized In Earnings | Amount of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Three Months Ended June 30, Six Months Ended June 30, Location of Gain (Loss) Recognized 2019 2019 Derivatives not designated as hedging instrument: Interest rate swaps Other income (expense) $ 11,040 $ ( 23,742 ) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Financial Instruments [Abstract] | |
Summary Of Unrealized Gain And Losses | Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net gain (loss) recognized during the period on equity securities $ 60 $ 19 $ 193 $ ( 2 ) Less: net gain / loss recognized during the period on equity securities sold during the period - - - - Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date $ 60 $ 19 $ 193 $ ( 2 ) |
Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt | June 30, December 31, 2019 2018 Carrying amount $ 3,000,467 $ 2,563,660 Estimated fair value 3,234,787 2,588,086 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Net Income Per Common Share [Abstract] | |
Schedule Of Earnings Per Share | Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Average common shares outstanding during the period for basic computation 219,055 177,901 198,747 177,852 Dilutive effect of tangible equity units 423 - 212 - Dilutive effect of employee stock-based compensation 312 372 344 447 Average common shares outstanding during the period for diluted computation 219,790 178,273 199,303 178,299 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of PSU Transactions | Number Weighted of Average Share Units Fair Value Nonvested share units at beginning of period 443,410 $ 27.20 Granted - - Performance criteria adjustment ( 64,259 ) 33.42 Forfeited ( 3,964 ) 33.62 Share units issued ( 89,324 ) 52.39 Nonvested share units at end of period 285,863 17.84 |
Summary Of RSU Transactions | Number Weighted of Average Stock Units Fair Value Nonvested stock units at beginning of period 130,085 $ 33.13 Granted 55,686 36.01 Stock units vested and issued ( 40,178 ) 32.88 Forfeited ( 2,327 ) 35.17 Nonvested stock units at end of period 143,266 34.29 |
Assumptions Used In The Pricing Model | 2019 2018 Expected term (years) 5.47 5.46 Risk-free interest rate 2.53 % 2.72 % Expected volatility 17.7 % 17.2 % Dividend yield 2.44 % 2.37 % Grant date fair value per option $ 5.25 $ 5.10 |
Summary Of Stock Option Transactions | Weighted Weighted Average Average Aggregate Exercise Remaining Intrinsic Shares Price Life (years) Value Outstanding at beginning of period 422,972 $ 25.97 Granted 769,115 35.94 Forfeited ( 18,120 ) 35.45 Expired / Cancelled ( 397 ) 32.05 Exercised ( 98,627 ) 15.68 Outstanding at end of period 1,074,943 $ 33.89 8.8 $ 8,044 Exercisable at end of period 186,931 $ 25.83 5.5 $ 2,904 |
Performance Share Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Compensation Costs | Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Stock-based compensation within operations and maintenance expenses $ 853 $ 1,339 $ 1,850 $ 2,198 Income tax benefit 239 373 516 614 |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Compensation Costs | Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Stock-based compensation within operations and maintenance expenses $ 412 $ 355 $ 837 $ 706 Income tax benefit 116 100 236 201 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Compensation Costs | Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Stock-based compensation within operations and maintenance expenses $ 661 $ 154 $ 988 $ 248 Income tax benefit 186 42 278 101 |
Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Compensation Costs | Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Stock-based compensation within operations and maintenance expenses $ 202 $ 140 $ 382 $ 280 Income tax benefit 58 41 110 81 |
Summary Of Nonvested Share Activity | Number Weighted of Average Stock Awards Fair Value Nonvested stock awards at beginning of period - $ - Granted 9,854 38.82 Vested ( 9,854 ) 38.82 Nonvested stock awards at end of period - - |
Pension Plans And Other Postr_2
Pension Plans And Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Pension Plans And Other Postretirement Benefits [Abstract] | |
Components Of Net Periodic Benefit Costs | Pension Benefits Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Service cost $ 680 $ 812 $ 1,360 $ 1,625 Interest cost 2,954 2,874 5,908 5,748 Expected return on plan assets ( 3,818 ) ( 4,553 ) ( 7,636 ) ( 9,106 ) Amortization of prior service cost 155 132 310 264 Amortization of actuarial loss 1,982 1,823 3,964 3,646 Net periodic benefit cost $ 1,953 $ 1,088 $ 3,906 $ 2,177 Other Postretirement Benefits Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Service cost $ 205 $ 262 $ 410 $ 525 Interest cost 750 708 1,500 1,416 Expected return on plan assets ( 621 ) ( 677 ) ( 1,242 ) ( 1,353 ) Amortization of prior service cost ( 116 ) ( 127 ) ( 232 ) ( 255 ) Amortization of actuarial loss 166 296 332 591 Net periodic benefit cost $ 384 $ 462 $ 768 $ 924 |
Taxes Other Than Income Taxes (
Taxes Other Than Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Taxes Other Than Income Taxes [Abstract] | |
Components Of Taxes Other Than Income Taxes | Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Property $ 6,929 $ 6,775 $ 13,395 $ 13,524 Gross receipts, excise and franchise 3,538 3,789 6,757 7,053 Payroll 2,291 2,180 5,772 5,455 Regulatory assessments 748 627 1,495 1,254 Pumping fees 1,272 1,424 2,241 2,415 Other 90 34 177 95 Total taxes other than income $ 14,868 $ 14,829 $ 29,837 $ 29,796 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Information [Abstract] | |
Company's Segment Information, Continuing Operations | Three Months Ended Three Months Ended June 30, 2019 June 30, 2018 Regulated Other Consolidated Regulated Other Consolidated Operating revenues $ 218,006 $ 886 $ 218,892 $ 210,824 $ 1,036 $ 211,860 Operations and maintenance expense 74,082 12,363 86,445 73,047 468 73,515 Depreciation 39,472 78 39,550 36,603 10 36,613 Amortization ( 3,060 ) 140 ( 2,920 ) 103 46 149 Operating income (loss) 93,112 ( 12,163 ) 80,949 86,672 82 86,754 Interest expense, net 24,067 ( 758 ) 23,309 21,756 1,967 23,723 Allowance for funds used during construction 3,611 - 3,611 2,577 - 2,577 Equity earnings in joint venture - 1,240 1,240 - 911 911 Provision for income taxes (benefit) 1,780 ( 3,951 ) ( 2,171 ) ( 147 ) ( 220 ) ( 367 ) Net income (loss) 69,579 ( 14,676 ) 54,903 67,877 ( 1,287 ) 66,590 Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Regulated Other Consolidated Regulated Other Consolidated Operating revenues $ 418,226 $ 1,798 $ 420,024 $ 404,331 $ 1,876 $ 406,207 Operations and maintenance expense 148,420 17,339 165,759 144,350 3,111 147,461 Depreciation 78,535 89 78,624 72,561 19 72,580 Amortization ( 2,864 ) 280 ( 2,584 ) 191 88 279 Operating income (loss) 165,765 ( 17,377 ) 148,388 158,730 ( 2,639 ) 156,091 Interest expense, net 47,725 3,434 51,159 43,464 3,730 47,194 Allowance for funds used during construction 7,667 - 7,667 5,444 - 5,444 Equity earnings in joint venture - 1,783 1,783 - 1,293 1,293 Provision for income taxes (benefit) 2,731 ( 13,072 ) ( 10,341 ) ( 790 ) ( 1,708 ) ( 2,498 ) Net income (loss) 121,520 ( 49,693 ) 71,827 121,904 ( 4,475 ) 117,429 Capital expenditures 269,171 - 269,171 216,614 - 216,614 |
Company's Segment Information, Assets | June 30, December 31, 2019 2018 Total assets: Regulated $ 7,043,679 $ 6,807,960 Other 2,136,671 156,536 Consolidated $ 9,180,350 $ 6,964,496 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Components Of Lease Expense | Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Components of lease expense were as follows: Operating lease cost $ 530 $ 1,105 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 355 $ 1,293 June 30, 2019 Supplemental balance sheet information related to leases was as follows: Operating leases: Operating lease right-of-use assets $ 13,164 Other accrued liabilities $ 1,251 Operating lease liabilities 11,913 Total operating lease liabilities $ 13,164 June 30, 2019 Weighted average remaining lease term: Operating leases 27 years Weighted average discount rate: Operating leases 4.08 % |
Maturities Of Operating Lease Liabilities | Operating Leases 2019 $ 618 2020 1,597 2021 1,374 2022 1,145 2023 770 Thereafter 16,430 Total operating lease payments $ 21,934 Total operating lease payments $ 21,934 Less operating lease liabilities 13,164 Present value adjustment $ 8,770 |
Future Minimum Lease Payments | 2019 $ 2,221 2020 1,682 2021 1,443 2022 1,221 2023 848 Thereafter 16,170 Total $ 23,585 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019item | |
Schedule of Equity Method Investments [Line Items] | |
Categories | 3 |
Aqua Infrastructure [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 49.00% |
Revenue Recognition (Schedule O
Revenue Recognition (Schedule Of Disaggregation Of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 218,892 | $ 211,860 | $ 420,024 | $ 406,207 |
Water [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 188,459 | 185,485 | 360,547 | 354,983 |
Revenue | 188,776 | 185,365 | 360,828 | 354,863 |
Water [Member] | Residential [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 126,550 | 122,530 | 240,597 | 236,367 |
Water [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 35,155 | 33,456 | 65,446 | 63,798 |
Water [Member] | Fire Protection [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8,260 | 7,970 | 16,338 | 15,908 |
Water [Member] | Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 7,456 | 7,309 | 14,321 | 13,669 |
Water [Member] | Other Water [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 11,038 | 14,220 | 23,845 | 25,241 |
Water [Member] | Alternative Revenue Program [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 317 | (120) | 281 | (120) |
Wastewater [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 25,970 | 22,976 | 51,361 | 44,650 |
Revenue | 25,868 | 23,140 | 51,146 | 44,814 |
Wastewater [Member] | Residential [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 20,263 | 17,583 | 40,210 | 35,115 |
Wastewater [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,797 | 2,975 | 7,364 | 5,863 |
Wastewater [Member] | Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 487 | 498 | 968 | 961 |
Wastewater [Member] | Other Wastewater [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,423 | 1,920 | 2,819 | 2,711 |
Wastewater [Member] | Alternative Revenue Program [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (102) | 164 | (215) | 164 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,362 | 2,319 | 6,252 | 4,654 |
Revenue | 4,248 | 3,355 | 8,050 | 6,530 |
Other [Member] | Other And Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 886 | 1,036 | 1,798 | 1,876 |
Other [Member] | Other Utility [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 3,362 | $ 2,319 | $ 6,252 | $ 4,654 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Line Items] | |
Balance | $ 52,726 |
Reclassification to utility plant acquisition adjustment | (4) |
Balance | 52,722 |
Regulated [Member] | |
Goodwill [Line Items] | |
Balance | 47,885 |
Reclassification to utility plant acquisition adjustment | (4) |
Balance | 47,881 |
Other [Member] | |
Goodwill [Line Items] | |
Balance | 4,841 |
Reclassification to utility plant acquisition adjustment | |
Balance | $ 4,841 |
Acquisitions (Details)
Acquisitions (Details) | Apr. 24, 2019USD ($) | Apr. 23, 2019USD ($)$ / shares | Apr. 18, 2019USD ($)$ / shares | Oct. 22, 2018USD ($)itemcustomer | Dec. 31, 2018USD ($)ft | Nov. 30, 2018USD ($)customer | Jul. 31, 2018USD ($)customeritem | Jun. 30, 2019USD ($)itemcustomer | Jun. 30, 2018USD ($) | Dec. 31, 2019statecustomer | Jun. 11, 2019USD ($) | Apr. 26, 2019USD ($) | Oct. 23, 2018USD ($) |
Business Acquisition [Line Items] | |||||||||||||
Goodwill | $ 52,726,000 | $ 52,722,000 | |||||||||||
Issuance of common stock under dividend reinvestment plan | $ 4,420,000 | $ 720,000 | |||||||||||
Interest Rate Swap [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Debt instrument, issued | $ 900,000,000 | ||||||||||||
Water And Wastewater Utility Systems [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Number of acquisitions | item | 5 | 7 | |||||||||||
Number of customers | customer | 8,661 | ||||||||||||
Total purchase price | $ 46,450,000 | $ 42,519,000 | |||||||||||
LDC Funding LLC [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Issuance of common stock under dividend reinvestment plan | $ 1,293,750,000 | ||||||||||||
Proceeds from tangible equity units | $ 690,000,000 | ||||||||||||
Private placement, per share | $ / shares | $ 50 | ||||||||||||
Scenario, Forecast [Member] | Water And Wastewater Utility Systems [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Number of customers | customer | 7,200 | ||||||||||||
Number of states company operates in | state | 3 | ||||||||||||
Pennsylvania [Member] | Interest Rate Swap [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Interest rate swap | $ 850,000,000 | ||||||||||||
Pennsylvania [Member] | Wastewater Utility System [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Number of customers | customer | 4,950 | ||||||||||||
Total purchase price | $ 21,000,000 | ||||||||||||
Pennsylvania [Member] | Valley Creek Trunk Sewer System [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Total purchase price | $ 28,300,000 | ||||||||||||
Systeme length | ft | 49,000 | ||||||||||||
Pennsylvania [Member] | LDC Funding LLC [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Number of acquisitions | item | 5 | ||||||||||||
Number of customers | customer | 740,000 | ||||||||||||
Total purchase price | $ 4,275,000,000 | ||||||||||||
Outstanding debt | 1,370,000,000 | ||||||||||||
Contingent consideration | $ 120,000,000 | ||||||||||||
Repayments of Debt | 4,350,000,000 | ||||||||||||
Stock purchase agreement | $ 750,000,000 | ||||||||||||
Issuance of common stock under dividend reinvestment plan | 1,293,750,000 | ||||||||||||
Debt available | $ 750,000,000 | ||||||||||||
Proceeds from tangible equity units | $ 690,000,000 | ||||||||||||
Private placement, per share | $ / shares | $ 50 | ||||||||||||
Pennsylvania [Member] | LDC Funding LLC [Member] | Senior Notes [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Debt instrument, issued | $ 900,000,000 | ||||||||||||
Proceeds from debt | $ 83,520,000 | ||||||||||||
Pennsylvania [Member] | LDC Funding LLC [Member] | Senior Unsecured Notes [Member] | Letter of Credit [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Debt instrument, issued | $ 5,100,000,000 | ||||||||||||
Limerick [Member] | Wastewater Utility System [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Number of customers | customer | 5,497 | ||||||||||||
Total purchase price | $ 74,836,000 | ||||||||||||
Acquired property, plant and equipment | 64,759,000 | ||||||||||||
Goodwill | $ 10,790,000 | ||||||||||||
Cheltenham Township [Member] | Wastewater Utility System [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Number of customers | customer | 10,500 | ||||||||||||
Total purchase price | $ 50,250,000 |
Assets Held For Sale (Details)
Assets Held For Sale (Details) $ in Thousands | 1 Months Ended | 3 Months Ended |
Apr. 30, 2019USD ($)customer | Mar. 31, 2017customer | |
Disposal Group, Not Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of customers | customer | 500 | |
Consideration for sale of business unit | $ | $ 1,882 | |
Gain on sale | $ | $ 403 | |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of customers | customer | 265 |
Capitalization (Details)
Capitalization (Details) | May 18, 2019USD ($) | Apr. 26, 2019USD ($) | Apr. 23, 2019USD ($)$ / shares | Mar. 29, 2019USD ($)item$ / sharesshares | Sep. 30, 2019USD ($) | May 31, 2019USD ($) | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($) | Dec. 31, 2018$ / shares |
Debt Instrument [Line Items] | ||||||||||
Private Placement | shares | 21,661,095 | |||||||||
Proceeds from private placement | $ 750,000,000 | |||||||||
Common stock, par value | $ / shares | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | ||||||
Issuance expense | $ 21,560,000 | |||||||||
Private placement discount | 4.50% | |||||||||
Trading days | item | 20 | |||||||||
Diligence expenses | $ 4,000,000 | |||||||||
Issuance of common stock under dividend reinvestment plan | $ 4,420,000 | $ 720,000 | ||||||||
Private placement price | $ / shares | $ 34.62 | |||||||||
Repayments of long-term debt | 825,642,000 | 41,001,000 | ||||||||
Debt redeemed | 825,642,000 | 41,001,000 | ||||||||
Pre-payment penalty | 25,237,000 | |||||||||
Long-Term Due 2019 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity Year | 2019 | |||||||||
Redemption percentage | 3.57% | |||||||||
Long-Term Due 2037 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity Year | 2037 | |||||||||
Redemption percentage | 5.83% | |||||||||
Notes Ranging 2019-2037 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of long-term debt | $ 313,500,000 | $ 18,935,000 | ||||||||
Long-term debt | 6,302,000 | $ 6,302,000 | ||||||||
Debt redeemed | 313,500,000 | $ 18,935,000 | ||||||||
Pre-payment penalty | $ 25,237,000 | |||||||||
Aqua Pennsylvania, Inc [Member] | First Mortgage Bonds [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face Amount | $ 125,000,000 | |||||||||
Aqua Pennsylvania, Inc [Member] | First Mortgage Bonds Due In 2049 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face Amount | $ 75,000,000 | |||||||||
Maturity Year | 2049 | |||||||||
Interest Rate | 4.02% | |||||||||
Aqua Pennsylvania, Inc [Member] | First Mortgage Bonds Due In 2054 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face Amount | $ 25,000,000 | |||||||||
Maturity Year | 2054 | |||||||||
Interest Rate | 4.07% | |||||||||
Aqua Pennsylvania, Inc [Member] | First Mortgage Bonds Due In 2059 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face Amount | $ 25,000,000 | |||||||||
Maturity Year | 2059 | |||||||||
Interest Rate | 4.12% | |||||||||
Aqua Pennsylvania, Inc [Member] | First Mortgage Bonds [Member] | Scenario, Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face Amount | $ 175,000,000 | |||||||||
Aqua Pennsylvania, Inc [Member] | First Mortgage Bonds Due In 2054 [Member] | Scenario, Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face Amount | $ 50,000,000 | |||||||||
Maturity Year | 2054 | |||||||||
Interest Rate | 4.09% | |||||||||
Aqua Pennsylvania, Inc [Member] | First Mortgage Bonds Due In 2058 [Member] | Scenario, Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face Amount | $ 75,000,000 | |||||||||
Maturity Year | 2058 | |||||||||
Interest Rate | 4.13% | |||||||||
Aqua Pennsylvania, Inc [Member] | First Mortgage Bonds Due In 2059 [Member] | Scenario, Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face Amount | $ 50,000,000 | |||||||||
Maturity Year | 2059 | |||||||||
Interest Rate | 4.14% | |||||||||
LDC Funding LLC [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Issuance expense | $ 29,625,000 | |||||||||
Private placement, per share | $ / shares | $ 50 | |||||||||
Issuance of common stock under dividend reinvestment plan | $ 1,293,750,000 | |||||||||
Private placement price | $ / shares | $ 34.62 | |||||||||
Proceeds from tangible equity units | 690,000,000 | |||||||||
Debt issuance expense | $ 15,830,000 | |||||||||
Share price | $ / shares | $ 34.62 | |||||||||
Initial principal amount | $ 119,081,000 | |||||||||
Initial principal amount per share | $ / shares | $ 8.62909 | |||||||||
Cash installment | $ / shares | $ 0.75000 | |||||||||
Cash installment rate | 6.00% | |||||||||
Additional paid in capital | $ 570,919,000 | |||||||||
insurance | $ 13,082,000 | |||||||||
Interest Rate | 3.00% | |||||||||
Amortization of notes | $ 119,081,000 | |||||||||
Amortization of issuance costs | $ 2,748,000 | |||||||||
LDC Funding LLC [Member] | July 30, 2019 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Cash installment | $ / shares | $ 0.80833 | |||||||||
LDC Funding LLC [Member] | Long-Term [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance expense | $ 7,324,000 | |||||||||
Face Amount | $ 900,000,000 | |||||||||
Redemption percentage | 101.00% | |||||||||
LDC Funding LLC [Member] | Long-Term Due 2019 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date | 2029 | |||||||||
Face Amount | $ 400,000,000 | |||||||||
Interest Rate | 3.566% | |||||||||
LDC Funding LLC [Member] | Long-Term Due 2037 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date | 2049 | |||||||||
Face Amount | $ 500,000,000 | |||||||||
Interest Rate | 4.276% | |||||||||
LDC Funding LLC [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Conversion to shares | $ / shares | 1.1790 | |||||||||
LDC Funding LLC [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Conversion to shares | $ / shares | $ 1.4442 |
Interest Rate Swap Agreements_2
Interest Rate Swap Agreements (Narrative) (Details) - USD ($) | Apr. 24, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Oct. 31, 2018 |
Derivative [Line Items] | ||||
Debt redeemed | $ 825,642,000 | $ 41,001,000 | ||
Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swap | $ 850,000,000 | |||
Face Amount | $ 900,000,000 | |||
Debt redeemed | 313,500,000 | |||
Loss on derivative | $ 83,520,000 |
Interest Rate Swap Agreements_3
Interest Rate Swap Agreements (Summary Of Amounts Recognized In Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Operating Income (Expense) [Member] | Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized | $ 11,040 | $ (23,742) |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Apr. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 1,974,076 | $ 3,627 | |
Customers' advances for construction | 102,801 | 93,343 | |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans payable | 6,076 | 15,449 | |
Mutual funds | 22,671 | 20,388 | |
Cash and cash equivalents | $ 1,974,076 | $ 3,627 | |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate swap | $ 59,779 |
Financial Instruments (Summary
Financial Instruments (Summary Of Unrealized Gain And Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financial Instruments [Abstract] | ||||
Net gain recognized during the period on equity securities | $ 60 | $ 19 | $ 193 | $ (2) |
Unrealized gain recognized during the reporting period on equity securities still held at the reporting date | $ 60 | $ 19 | $ 193 | $ (2) |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 3,000,467 | $ 2,563,660 |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 3,234,787 | $ 2,588,086 |
Net Income Per Common Share (Na
Net Income Per Common Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | |
Net Income Per Common Share [Abstract] | |||
Employee stock options excluded from calculations of diluted net income per share | 159,244 | ||
Tangible equity units | 12,336,745 | 6,202,452 |
Net Income Per Common Share (Sc
Net Income Per Common Share (Schedule Of Earnings Per Share) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Income Per Common Share [Abstract] | ||||
Average common shares outstanding during the period for basic computation | 219,055 | 177,901 | 198,747 | 177,852 |
Dilutive effect of tangible equit units | 423 | 212 | ||
Dilutive effect of employee stock-based compensation | 312 | 372 | 344 | 447 |
Average common shares outstanding during the period for diluted computation | 219,790 | 178,273 | 199,303 | 178,299 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
2004 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 0 | |
2009 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 6,250,000 | |
Maximum number of shares may be issued pursuant to stock awards, stock units and other stock-based awards | 3,125,000 | |
Maximum number of shares subject to grants to any one individual in any one year | 500,000 | |
Underlying stock option and restricted stock awards available for grant | 2,628,625 | |
Performance Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period, in years | 3 years | |
Weighted average fair value of stock awards granted | $ 37.65 | |
Amortization period of fair value of shares, in months | 36 months | |
Performance Share Units [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target award amount the grantee may earn | 0.00% | |
Performance Share Units [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target award amount the grantee may earn | 200.00% | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted period | 3 years | |
Weighted average fair value of stock awards granted | $ 36.01 | $ 34.91 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period, start, in years | 1 year | |
Vesting period, in years | 10 years | |
Stock Options [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.00% | |
Stock Options [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.00% | |
Stock Options [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.00% | |
Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value of stock awards granted | $ 38.82 | $ 34.58 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of PSU Transactions) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted, Number of Share Units | 5,099 | 134,257 | 3,969 | 181,670 | |
Performance Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Nonvested share units at beginning of period, Number of Share Units | 443,410 | 443,410 | |||
Performance criteria adjustment, Number of Share Units | (64,259) | ||||
Forfeited, Number of Share Units | (3,964) | ||||
Share units issued, Number of Share Units | (89,324) | ||||
Nonvested share units at end of period, Number of Share Units | 285,863 | 285,863 | |||
Nonvested share units at beginning of period, Weighted Average Fair Value | $ 27.20 | $ 27.20 | |||
Granted, Weighted Average Fair Value | 37.65 | ||||
Performance criteria adjustment, Weighted Average Fair Value | 33.42 | ||||
Forfeited, Weighted Average Fair Value | 33.62 | ||||
Share units issued, Weighted Average Fair Value | 52.39 | ||||
Nonvested share units at end of period, Weighted Average Fair Value | $ 17.84 | $ 17.84 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of RSU Transactions) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted, Number of Share Units | 5,099 | 134,257 | 3,969 | 181,670 | ||
Restricted Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Nonvested share units at beginning of period, Number of Share Units | 130,085 | 130,085 | ||||
Granted, Number of Share Units | 55,686 | |||||
Stock units vested and issued, Number of Share Units | (40,178) | |||||
Forfeited, Number of Share Units | (2,327) | |||||
Nonvested share units at end of period, Number of Share Units | 143,266 | 143,266 | ||||
Nonvested share units at beginning of period, Weighted Average Fair Value | $ 33.13 | $ 33.13 | ||||
Granted, Weighted Average Fair Value | 36.01 | $ 34.91 | ||||
Share units vested, Weighted Average Fair Value | 32.88 | |||||
Forfeited, Weighted Average Fair Value | 35.17 | |||||
Nonvested share units at end of period, Weighted Average Fair Value | $ 34.29 | $ 34.29 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary Of Compensation Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation within operations and maintenance expenses | $ 661 | $ 154 | $ 988 | $ 248 |
Income tax benefit | 186 | 42 | 278 | 101 |
Performance Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation within operations and maintenance expenses | 853 | 1,339 | 1,850 | 2,198 |
Income tax benefit | 239 | 373 | 516 | 614 |
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation within operations and maintenance expenses | 412 | 355 | 837 | 706 |
Income tax benefit | 116 | 100 | 236 | 201 |
Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation within operations and maintenance expenses | 202 | 140 | 382 | 280 |
Income tax benefit | $ 58 | $ 41 | $ 110 | $ 81 |
Stock-Based Compensation (Assum
Stock-Based Compensation (Assumptions Used In The Pricing Model) (Details) - Stock Options [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (years) | 5 years 5 months 19 days | 5 years 5 months 15 days |
Risk-free interest rate | 2.53% | 2.72% |
Expected volatility | 17.70% | 17.20% |
Dividend yield | 2.44% | 2.37% |
Grant date fair value per option | $ 5.25 | $ 5.10 |
Stock-Based Compensation (Sum_4
Stock-Based Compensation (Summary Of Stock Option Transactions) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercised, Shares | (21,148) | (77,479) | (411) | (62,688) | |
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding at beginning of period, Shares | 422,972 | 422,972 | |||
Granted, Shares | 769,115 | ||||
Forfeited, Shares | (18,120) | ||||
Expired / Canelled, Shares | (397) | ||||
Exercised, Shares | (98,627) | ||||
Outstanding at end of period, Shares | 1,074,943 | 1,074,943 | |||
Exercisable at end of period, Shares | 186,931 | 186,931 | |||
Outstanding at beginning of period, Weighted Average Exercise Price | $ 25.97 | $ 25.97 | |||
Granted, Weighted Average Exercise Price | 35.94 | ||||
Forfeited, Weighted Average Exercise Price | 35.45 | ||||
Expired / Canelled, Weighted Average Exercise Price | 32.05 | ||||
Exercised, Weighted Average Exercise Price | 15.68 | ||||
Outstanding at end of period, Weighted Average Exercise Price | $ 33.89 | 33.89 | |||
Exercisable at end of period, Weighted Average Exercise Price | $ 25.83 | $ 25.83 | |||
Outstanding at end of period, Weighted Average Remaining Life (years) | 8 years 9 months 18 days | ||||
Exercisable at end of period, Weighted Average Remaining Life (years) | 5 years 6 months | ||||
Outstanding at end of period, Aggregate Intrinsic Value | $ 8,044 | $ 8,044 | |||
Exercisable at end of period, Aggregate Intrinsic Value | $ 2,904 | $ 2,904 |
Stock-Based Compensation (Sum_5
Stock-Based Compensation (Summary Of Nonvested Share Activity) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted, Number of Share Units | 5,099 | 134,257 | 3,969 | 181,670 | ||
Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Nonvested share units at beginning of period, Number of Share Units | ||||||
Granted, Number of Share Units | 9,854 | |||||
Stock units vested and issued, Number of Share Units | (9,854) | |||||
Nonvested share units at end of period, Number of Share Units | ||||||
Nonvested share units at beginning of period, Weighted Average Fair Value | ||||||
Granted, Weighted Average Fair Value | 38.82 | $ 34.58 | ||||
Share units vested, Weighted Average Fair Value | 38.82 | |||||
Nonvested share units at end of period, Weighted Average Fair Value |
Pension Plans And Other Postr_3
Pension Plans And Other Postretirement Benefits (Narrative) (Details) - Pension Benefits [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Cash contributions made by the Company | $ 6,479 |
Cash contributions remainder of 2019 | $ 1,743 |
Pension Plans And Other Postr_4
Pension Plans And Other Postretirement Benefits (Components Of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 680 | $ 812 | $ 1,360 | $ 1,625 |
Interest cost | 2,954 | 2,874 | 5,908 | 5,748 |
Expected return on plan assets | (3,818) | (4,553) | (7,636) | (9,106) |
Amortization of prior service cost | 155 | 132 | 310 | 264 |
Amortization of actuarial loss | 1,982 | 1,823 | 3,964 | 3,646 |
Net periodic benefit cost | 1,953 | 1,088 | 3,906 | 2,177 |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 205 | 262 | 410 | 525 |
Interest cost | 750 | 708 | 1,500 | 1,416 |
Expected return on plan assets | (621) | (677) | (1,242) | (1,353) |
Amortization of prior service cost | (116) | (127) | (232) | (255) |
Amortization of actuarial loss | 166 | 296 | 332 | 591 |
Net periodic benefit cost | $ 384 | $ 462 | $ 768 | $ 924 |
Water And Wastewater Rates (Det
Water And Wastewater Rates (Details) - USD ($) | May 24, 2019 | Apr. 24, 2019 | Jan. 01, 2019 | Jun. 30, 2019 |
Water And Wastewater Rates [Line Items] | ||||
Base rate increase (decrease) | $ 76,493,000 | |||
Base rate increase designed to increase total operating revenues on an annual basis | $ 29,493,000 | |||
Increase in water and waster rates | 7.50% | |||
Distribution system improvement charges reset level upon new base rates | $ 0 | |||
Corporate federal income tax rate | 21.00% | |||
Illinois, Ohio, And Pennsylvania [Member] | ||||
Water And Wastewater Rates [Line Items] | ||||
Infrastructure rehabilitation surcharges | $ 3,931,000 | |||
New Jersey [Member] | ||||
Water And Wastewater Rates [Line Items] | ||||
Base rate increase (decrease) | $ 5,000,000 | |||
Pennsylvania [Member] | ||||
Water And Wastewater Rates [Line Items] | ||||
Base rate increase (decrease) | $ 47,000,000 | |||
Ohio [Member] | ||||
Water And Wastewater Rates [Line Items] | ||||
Base rate increase (decrease) | $ 974,000 |
Taxes Other Than Income Taxes_2
Taxes Other Than Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | $ 14,868 | $ 14,829 | $ 29,837 | $ 29,796 |
Property [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 6,929 | 6,775 | 13,395 | 13,524 |
Gross Receipts, Excise And Franchise [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 3,538 | 3,789 | 6,757 | 7,053 |
Payroll [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 2,291 | 2,180 | 5,772 | 5,455 |
Regulatory Assessments [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 748 | 627 | 1,495 | 1,254 |
Pumping Fees [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 1,272 | 1,424 | 2,241 | 2,415 |
Other [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | $ 90 | $ 34 | $ 177 | $ 95 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019segment | |
Segment Reporting Information [Line Items] | |
Operating Segments | 10 |
Reportable Segments | 1 |
Reportable Segment [Member] | |
Segment Reporting Information [Line Items] | |
Operating Segments | 8 |
Other [Member] | |
Segment Reporting Information [Line Items] | |
Operating Segments | 2 |
Segment Information (Company's
Segment Information (Company's Segment Information, Continuing Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||||
Operating revenues | $ 218,892 | $ 211,860 | $ 420,024 | $ 406,207 | ||
Operations and maintenance expense | 86,445 | 73,515 | 165,759 | 147,461 | ||
Depreciation | 39,550 | 36,613 | 78,624 | 72,580 | ||
Amortization | (2,920) | 149 | (2,584) | 279 | ||
Operating income (loss) | 80,949 | 86,754 | 148,388 | 156,091 | ||
Interest expense, net | 23,309 | 23,723 | 51,159 | 47,194 | ||
Allowance for funds used during construction | 3,611 | 2,577 | 7,667 | 5,444 | ||
Equity earnings in joint venture | 1,240 | 911 | 1,783 | 1,293 | ||
Provision for income taxes | (2,171) | (367) | (10,341) | (2,498) | ||
Net income (loss) | 54,903 | $ 16,924 | 66,590 | $ 50,839 | 71,827 | 117,429 |
Capital expenditures | 269,171 | 216,614 | ||||
Regulated [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenues | 218,006 | 210,824 | 418,226 | 404,331 | ||
Operations and maintenance expense | 74,082 | 73,047 | 148,420 | 144,350 | ||
Depreciation | 39,472 | 36,603 | 78,535 | 72,561 | ||
Amortization | (3,060) | 103 | (2,864) | 191 | ||
Operating income (loss) | 93,112 | 86,672 | 165,765 | 158,730 | ||
Interest expense, net | 24,067 | 21,756 | 47,725 | 43,464 | ||
Allowance for funds used during construction | 3,611 | 2,577 | 7,667 | 5,444 | ||
Provision for income taxes | 1,780 | (147) | 2,731 | (790) | ||
Net income (loss) | 69,579 | 67,877 | 121,520 | 121,904 | ||
Capital expenditures | 269,171 | 216,614 | ||||
Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenues | 886 | 1,036 | 1,798 | 1,876 | ||
Operations and maintenance expense | 12,363 | 468 | 17,339 | 3,111 | ||
Depreciation | 78 | 10 | 89 | 19 | ||
Amortization | 140 | 46 | 280 | 88 | ||
Operating income (loss) | (12,163) | 82 | (17,377) | (2,639) | ||
Interest expense, net | (758) | 1,967 | 3,434 | 3,730 | ||
Allowance for funds used during construction | ||||||
Equity earnings in joint venture | 1,240 | 911 | 1,783 | 1,293 | ||
Provision for income taxes | (3,951) | (220) | (13,072) | (1,708) | ||
Net income (loss) | $ (14,676) | $ (1,287) | (49,693) | (4,475) | ||
Capital expenditures |
Segment Information (Company'_2
Segment Information (Company's Segment Information, Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 9,180,350 | $ 6,964,496 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,136,671 | 156,536 |
Regulated [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 7,043,679 | $ 6,807,960 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Commitments And Contingencies [Abstract] | |
Aggregate amount accrued for loss contingencies | $ 17,929 |
Amount probable of recovery through insurance | 6,526 |
Insurance reserve for employee medical benefit program | $ 1,515 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Unrecognized tax benefits | $ 17,562,000 | $ 17,792,000 | |
Corporate federal income tax rate | 21.00% | ||
Federal [Member] | |||
Income Taxes [Line Items] | |||
Change in operating loss carryforward | $ (33,928,000) | ||
Operating loss carryforwards | 44,763,000 | ||
Operating loss carryforwards, valuation allowance | 0 | ||
Unrecognized tax benefits | 68,978,000 | ||
Deferred tax assets, operating loss carryforwards | 113,741,000 | ||
State [Member] | |||
Income Taxes [Line Items] | |||
Change in operating loss carryforward | 67,583,000 | ||
Operating loss carryforwards | 717,868,000 | ||
Unrecognized tax benefits | 85,657,000 | ||
Deferred tax assets, operating loss carryforwards | $ 803,525,000 | ||
Minimum [Member] | State [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration dates | 2023 | ||
Maximum [Member] | Federal [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, expiration dates | 2032 | ||
Pennsylvania [Member] | |||
Income Taxes [Line Items] | |||
Unrecognized tax benefits that would impact effective tax rate | $ 28,058,000 | ||
Deferred income tax liabilities | $ 175,108,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | Jun. 30, 2019 |
Minimum [Member] | |
Lease term | 1 year |
Maximum [Member] | |
Lease term | 76 years |
Renewal term | 50 years |
Leases (Components Of Lease Exp
Leases (Components Of Lease Expense) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Leases [Abstract] | ||
Operating lease cost | $ 530 | $ 1,105 |
Operating cash flows from operating leases | 355 | 1,293 |
Operating lease right-of-use assets | 13,164 | 13,164 |
Other accrued liabilities | 1,251 | 1,251 |
Operating lease liabilities | 11,913 | 11,913 |
Total operating lease liabilities | $ 13,164 | $ 13,164 |
Weighted average remaining lease term | 27 years | 27 years |
Weighted average remaining lease term | 4.08% | 4.08% |
Leases (Maturities Of Operating
Leases (Maturities Of Operating Lease Liabilities) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 618 |
2020 | 1,597 |
2021 | 1,374 |
2022 | 1,145 |
2023 | 770 |
Thereafter | 16,430 |
Total operating lease payments | 21,934 |
Less operating lease liabilities | 13,164 |
Present value adjustment | $ 8,770 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 2,221 |
2020 | 1,682 |
2021 | 1,443 |
2022 | 1,221 |
2023 | 848 |
Thereafter | 16,170 |
Total | $ 23,585 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 13,164 | |
Operating lease liabilities | $ 13,164 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 14,028 | |
Operating lease liabilities | $ 14,028 |