Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 02, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | AMERICAN STATES WATER CO | |
Entity Central Index Key | 1,056,903 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 36,554,067 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment | ||
Regulated utility plant, at cost | $ 1,607,283 | $ 1,578,865 |
Non-utility property, at cost | 12,127 | 11,627 |
Utility plant, at cost | 1,619,410 | 1,590,492 |
Less - Accumulated depreciation | (540,092) | (529,698) |
Net property, plant and equipment | 1,079,318 | 1,060,794 |
Other Property and Investments | ||
Goodwill | 1,116 | 1,116 |
Other property and investments | 18,687 | 18,710 |
Total other property and investments | 19,803 | 19,826 |
Current Assets | ||
Cash and cash equivalents | 8,457 | 4,364 |
Accounts receivable - customers, less allowance for doubtful accounts | 16,183 | 18,940 |
Unbilled receivable | 18,233 | 19,490 |
Receivable from the U.S. government | 4,076 | 5,861 |
Other accounts receivable, less allowance for doubtful accounts | 1,448 | 2,302 |
Income taxes receivable | 7,571 | 10,793 |
Materials and supplies, at average cost | 5,180 | 5,415 |
Regulatory assets — current | 33,555 | 30,134 |
Prepayments and other current assets | 5,453 | 3,229 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 30,969 | 32,169 |
Total current assets | 131,125 | 132,697 |
Regulatory and Other Assets | ||
Regulatory assets | 110,643 | 102,562 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 21,253 | 21,330 |
Other | 6,749 | 6,750 |
Total regulatory and other assets | 138,645 | 130,642 |
Total Assets | 1,368,891 | 1,343,959 |
Capitalization | ||
Common shares, no par value | 244,568 | 245,022 |
Earnings reinvested in the business | 222,833 | 220,923 |
Total common shareholders’ equity | 467,401 | 465,945 |
Long-term debt | 320,910 | 320,900 |
Total capitalization | 788,311 | 786,845 |
Current Liabilities | ||
Notes Payable to Bank, Current | 43,000 | 28,000 |
Long-term debt — current | 318 | 312 |
Accounts payable | 47,856 | 50,585 |
Income taxes payable | 454 | 68 |
Accrued other taxes | 5,882 | 8,142 |
Accrued employee expenses | 11,966 | 11,748 |
Accrued interest | 6,623 | 3,626 |
Unrealized loss on purchased power contracts | 7,245 | 7,053 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 5,540 | 3,764 |
Other | 10,167 | 10,209 |
Total current liabilities | 139,051 | 123,507 |
Other Credits | ||
Advances for construction | 68,802 | 68,041 |
Contributions in aid of construction - net | 117,386 | 117,810 |
Deferred income taxes | 195,511 | 192,852 |
Unamortized investment tax credits | 1,591 | 1,612 |
Accrued pension and other postretirement benefits | 47,653 | 42,666 |
Other | 10,586 | 10,626 |
Total other credits | $ 441,529 | $ 433,607 |
Commitments and Contingencies (Note 8) | ||
Total Capitalization and Liabilities | $ 1,368,891 | $ 1,343,959 |
GOLDEN STATE WATER COMPANY | ||
Property, Plant and Equipment | ||
Utility plant, at cost | 1,607,283 | 1,578,865 |
Less - Accumulated depreciation | (532,885) | (522,749) |
Net property, plant and equipment | 1,074,398 | 1,056,116 |
Other Property and Investments | ||
Total other property and investments | 16,561 | 16,581 |
Current Assets | ||
Cash and cash equivalents | 3,486 | 2,501 |
Accounts receivable - customers, less allowance for doubtful accounts | 16,183 | 18,940 |
Unbilled receivable | 16,497 | 18,181 |
Inter-company receivable | 329 | 54 |
Other accounts receivable, less allowance for doubtful accounts | 928 | 1,455 |
Income taxes receivable from Parent | 7,852 | 11,000 |
Materials and supplies, at average cost | 4,345 | 4,860 |
Regulatory assets — current | 33,555 | 30,134 |
Prepayments and other current assets | 4,546 | 2,793 |
Total current assets | 87,721 | 89,918 |
Regulatory and Other Assets | ||
Regulatory assets | 110,643 | 102,562 |
Other | 6,714 | 6,702 |
Total regulatory and other assets | 117,357 | 109,264 |
Total Assets | 1,296,037 | 1,271,879 |
Capitalization | ||
Common shares, no par value | 238,233 | 238,795 |
Earnings reinvested in the business | 185,567 | 184,935 |
Total common shareholders’ equity | 423,800 | 423,730 |
Long-term debt | 320,910 | 320,900 |
Total capitalization | 744,710 | 744,630 |
Current Liabilities | ||
Inter-company payable | 27,033 | 12,000 |
Long-term debt — current | 318 | 312 |
Accounts payable | 40,039 | 39,610 |
Accrued other taxes | 5,522 | 7,830 |
Accrued employee expenses | 10,657 | 10,630 |
Accrued interest | 6,352 | 3,599 |
Unrealized loss on purchased power contracts | 7,245 | 7,053 |
Other | 9,895 | 9,921 |
Total current liabilities | 107,061 | 90,955 |
Other Credits | ||
Advances for construction | 68,802 | 68,041 |
Contributions in aid of construction - net | 117,386 | 117,810 |
Deferred income taxes | 198,362 | 195,658 |
Unamortized investment tax credits | 1,591 | 1,612 |
Accrued pension and other postretirement benefits | 47,653 | 42,666 |
Other | 10,472 | 10,507 |
Total other credits | $ 444,266 | $ 436,294 |
Commitments and Contingencies (Note 8) | ||
Total Capitalization and Liabilities | $ 1,296,037 | $ 1,271,879 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts receivable - customers, allowance for doubtful accounts | $ 730 | $ 790 |
Other accounts receivable, allowance for doubtful accounts | 59 | 154 |
GOLDEN STATE WATER COMPANY | ||
Accounts receivable - customers, allowance for doubtful accounts | 730 | 790 |
Other accounts receivable, allowance for doubtful accounts | $ 59 | $ 129 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Revenues | ||
Water | $ 66,312 | $ 71,504 |
Electric | 10,573 | 10,969 |
Contracted services | 16,642 | 18,460 |
Total operating revenues | 93,527 | 100,933 |
Operating Expenses | ||
Water purchased | 13,799 | 12,291 |
Power purchased for pumping | 1,632 | 2,017 |
Groundwater production assessment | 2,700 | 3,389 |
Power purchased for resale | 2,871 | 2,499 |
Supply cost balancing accounts | (3,415) | 1,813 |
Other operation | 6,966 | 6,160 |
Administrative and general | 20,773 | 19,527 |
Depreciation and amortization | 9,791 | 10,548 |
Maintenance | 4,070 | 3,477 |
Property and other taxes | 4,378 | 4,276 |
ASUS construction | 8,729 | 10,046 |
Total operating expenses | 72,294 | 76,043 |
Operating Income | 21,233 | 24,890 |
Other Income and Expenses | ||
Interest expense | (5,623) | (5,228) |
Interest income | 172 | 112 |
Other, net | 181 | 273 |
Total other income and expenses | (5,270) | (4,843) |
Income from operations before income tax expense | 15,963 | 20,047 |
Income tax expense | 5,813 | 7,898 |
Net Income | $ 10,150 | $ 12,149 |
Weighted Average Number of Common Shares Outstanding (in shares) | 36,521 | 38,205 |
Basic Earnings Per Common Share (in dollars per share) | $ 0.28 | $ 0.32 |
Weighted Average Number of Diluted Shares (in shares) | 36,697 | 38,408 |
Fully Diluted Earnings Per Common Share (in dollars per share) | $ 0.28 | $ 0.32 |
Dividends Paid Per Common Share (in dollars per share) | $ 0.224 | $ 0.213 |
GOLDEN STATE WATER COMPANY | ||
Operating Revenues | ||
Water | $ 66,312 | $ 71,504 |
Electric | 10,573 | 10,969 |
Total operating revenues | 76,885 | 82,473 |
Operating Expenses | ||
Water purchased | 13,799 | 12,291 |
Power purchased for pumping | 1,632 | 2,017 |
Groundwater production assessment | 2,700 | 3,389 |
Power purchased for resale | 2,871 | 2,499 |
Supply cost balancing accounts | (3,415) | 1,813 |
Other operation | 6,083 | 5,458 |
Administrative and general | 16,516 | 15,557 |
Depreciation and amortization | 9,530 | 10,241 |
Maintenance | 3,539 | 2,817 |
Property and other taxes | 3,987 | 3,918 |
Total operating expenses | 57,242 | 60,000 |
Operating Income | 19,643 | 22,473 |
Other Income and Expenses | ||
Interest expense | (5,570) | (5,218) |
Interest income | 170 | 104 |
Other, net | 181 | 273 |
Total other income and expenses | (5,219) | (4,841) |
Income from operations before income tax expense | 14,424 | 17,632 |
Income tax expense | 5,440 | 7,247 |
Net Income | $ 8,984 | $ 10,385 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows From Operating Activities: | ||
Net income | $ 10,150 | $ 12,149 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,965 | 10,771 |
Provision for doubtful accounts | 41 | 112 |
Deferred income taxes and investment tax credits | 2,266 | 1,255 |
Stock-based compensation expense | 786 | 853 |
Other — net | 191 | 339 |
Changes in assets and liabilities: | ||
Accounts receivable — customers | 2,625 | 1,958 |
Unbilled receivable | 1,257 | 4,497 |
Other accounts receivable | 945 | 1,507 |
Receivables from the U.S. government | 1,785 | (1,235) |
Materials and supplies | 235 | (316) |
Prepayments and other assets | (2,236) | (3,310) |
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,277 | 8,055 |
Regulatory assets | (5,897) | (4,612) |
Accounts payable | (3,091) | (2,765) |
Income taxes receivable/payable | 3,608 | 6,589 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 1,776 | (386) |
Accrued pension and other post-retirement benefits | 1,088 | 2,099 |
Other liabilities | 873 | 935 |
Net cash provided | 27,644 | 38,495 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (29,454) | (17,390) |
Other investing activities | (79) | (71) |
Net cash used | (29,533) | (17,461) |
Cash Flows From Financing Activities: | ||
Proceeds from stock option exercises | 126 | 292 |
Repurchase of Common Shares | 0 | (13,891) |
Receipt of advances for and contributions in aid of construction | 1,054 | 714 |
Refunds on advances for construction | (443) | (429) |
Retirement or repayments of long-term debt | (77) | (69) |
Proceeds from notes payable to banks | 15,000 | 0 |
Dividends paid | (8,181) | (8,155) |
Other | (1,497) | (809) |
Net cash (used) provided | 5,982 | (22,347) |
Net change in cash and cash equivalents | 4,093 | (1,313) |
Cash and cash equivalents, beginning of period | 4,364 | 75,988 |
Cash and cash equivalents, end of period | 8,457 | 74,675 |
Non-cash transactions: | ||
Accrued payables for investment in utility plant | 21,017 | 11,003 |
Property installed by developers and conveyed | 806 | 289 |
GOLDEN STATE WATER COMPANY | ||
Cash Flows From Operating Activities: | ||
Net income | 8,984 | 10,385 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,705 | 10,464 |
Provision for doubtful accounts | 62 | 112 |
Deferred income taxes and investment tax credits | 2,308 | 1,361 |
Stock-based compensation expense | 578 | 627 |
Other — net | 180 | 329 |
Changes in assets and liabilities: | ||
Accounts receivable — customers | 2,625 | 1,958 |
Unbilled receivable | 1,684 | 1,096 |
Other accounts receivable | 597 | 989 |
Materials and supplies | 515 | (433) |
Prepayments and other assets | (1,765) | (2,558) |
Regulatory assets | (5,897) | (4,612) |
Accounts payable | 74 | 558 |
Inter-company receivable/payable | (242) | 188 |
Income taxes receivable/payable from/to Parent | 3,148 | 5,898 |
Accrued pension and other post-retirement benefits | 1,088 | 2,099 |
Other liabilities | 411 | 377 |
Net cash provided | 24,055 | 28,838 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (28,961) | (17,318) |
Note receivable from AWR parent | (4,000) | 0 |
Receipt of payment of note receivable from AWR parent | 4,000 | 0 |
Other investing activities | (79) | (79) |
Net cash used | (29,040) | (17,397) |
Cash Flows From Financing Activities: | ||
Receipt of advances for and contributions in aid of construction | 1,054 | 714 |
Refunds on advances for construction | (443) | (429) |
Retirement or repayments of long-term debt | (77) | (69) |
Payments for Proceeds from Related Party Debt | 15,000 | 0 |
Dividends paid | (8,300) | (13,000) |
Other | (1,264) | (689) |
Net cash (used) provided | 5,970 | (13,473) |
Net change in cash and cash equivalents | 985 | (2,032) |
Cash and cash equivalents, beginning of period | 2,501 | 44,005 |
Cash and cash equivalents, end of period | 3,486 | 41,973 |
Non-cash transactions: | ||
Accrued payables for investment in utility plant | $ 21,010 | $ 10,989 |
Summary of Significant Accounti
Summary of Significant Accounting Policies: | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies: Nature of Operations : American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”) and American States Utility Services, Inc. (“ASUS”) (and its subsidiaries, Fort Bliss Water Services Company (“FBWS”), Terrapin Utility Services, Inc. (“TUS”), Old Dominion Utility Services, Inc. (“ODUS”), Palmetto State Utility Services, Inc. (“PSUS”) and Old North Utility Services, Inc. (“ONUS”)). The subsidiaries of ASUS are collectively referred to as the “Military Utility Privatization Subsidiaries.” GSWC is a public utility engaged principally in the purchase, production, distribution and sale of water in California serving approximately 260,000 customers. GSWC also distributes electricity in several San Bernardino County mountain communities in California serving approximately 24,000 customers through its Bear Valley Electric Service (“BVES”) division. Although Registrant has a diversified base of residential, industrial and other customers, revenues derived from commercial and residential water customers accounted for approximately 90% of total water revenues during the three months ended March 31, 2016 and 2015 . The California Public Utilities Commission (“CPUC”) regulates GSWC’s water and electric businesses in matters including properties, rates, services, facilities and transactions by GSWC with its affiliates. AWR’s assets and operating income are primarily those of GSWC. ASUS, through its wholly owned subsidiaries, operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various United States military bases pursuant to 50 -year firm fixed-price contracts. These contracts are subject to periodic price redeterminations or economic price adjustments and modifications for changes in circumstances, changes in laws and regulations and additions to the contract value for new construction of facilities at the military bases. There is no direct regulatory oversight by the CPUC over AWR or the operations, rates or services provided by ASUS or any of its wholly owned subsidiaries. Basis of Presentation : The consolidated financial statements and notes thereto are presented in a combined report filed by two separate Registrants: AWR and GSWC. References in this report to “Registrant” are to AWR and GSWC, collectively, unless otherwise specified. AWR owns all of the outstanding Common Shares of GSWC and ASUS. ASUS owns all of the outstanding Common Shares of the Military Utility Privatization Subsidiaries. The consolidated financial statements of AWR include the accounts of AWR and its subsidiaries, all of which are wholly owned. These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. Inter-company transactions and balances have been eliminated in the AWR consolidated financial statements. The consolidated financial statements included herein have been prepared by Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The December 31, 2015 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles ("GAAP") in the United States of America. The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. In the opinion of management, all adjustments consisting of normal, recurring items and estimates necessary for a fair statement of the results for the interim periods have been made. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Form 10-K for the year ended December 31, 2015 filed with the SEC. GSWC's Related Party Transactions : GSWC and ASUS provide and/or receive various support services to and from their parent, AWR, and among themselves. GSWC also allocates certain corporate office administrative and general costs to its affiliate, ASUS, using allocation factors approved by the CPUC. During the three months ended March 31, 2016 and 2015 , GSWC allocated to ASUS approximately $1.0 million and $707,000 , respectively, of corporate office administrative and general costs. In addition, AWR has a $100.0 million syndicated credit facility. AWR borrows under this facility and provides funds to its subsidiaries, including GSWC, in support of their operations. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest cost under the credit facility. In October 2015, AWR issued interest bearing promissory notes (the "Notes") to GSWC and ASUS for $40 million and $10 million , respectively, which expire on May 23, 2018. Under the terms of these Notes, AWR may borrow from GSWC and ASUS amounts up to $40 million and $10 million , respectively, for working capital purposes. AWR agrees to pay any unpaid principal amounts outstanding under these notes, plus accrued interest. As of March 31, 2016 , there were no amounts outstanding under these Notes. Sales and Use Taxes : GSWC bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which GSWC pays to various municipalities (based on ordinances adopted by these municipalities) in order to use public rights of way for utility purposes. GSWC bills these franchise fees to its customers based on a CPUC-authorized rate for each rate-making area as applicable. These franchise fees, which are required to be paid regardless of GSWC’s ability to collect them from its customer, are accounted for on a gross basis. GSWC’s franchise fees billed to customers and recorded as operating revenue were approximately $867,000 and $871,000 for the three months ended March 31, 2016 and 2015 , respectively. When GSWC acts as an agent, and the tax is not required to be remitted if it is not collected from the customer, the taxes are accounted for on a net basis. Depending on the states in which their operations are conducted, the Military Utility Privatization Subsidiaries are also subject to certain state non-income tax assessments generally computed on a “gross receipts” or “gross revenues” basis. These non-income tax assessments are required to be paid regardless of whether the U.S. government reimburses these assessments under the 50 -year contracts. The non-income tax assessments are accounted for on a gross basis and totaled $ 62,000 and $ 32,000 during the three months ended March 31, 2016 and 2015 , respectively. Recently Issued Accounting Pronouncements : In May 2014, the Financial Accounting Standards Board ("FASB") issued updated accounting guidance on revenue recognition. The guidance will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. Under this guidance, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what the entity expects in exchange for the goods or services. The guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and adoption is not permitted earlier than the original effective date, that is, no earlier than 2017. The guidance allows entities to select one of two methods of adoption, either the full retrospective approach, meaning the guidance would be applied to all periods presented, or modified retrospective approach, meaning the cumulative effect of applying the guidance would be recognized as an adjustment to opening retained earnings at January 1, 2018, along with providing certain additional disclosures. Registrant will adopt this guidance in the fiscal year beginning January 1, 2018. Management has not yet selected a transition method nor has it determined the effect of the standard on the Company's ongoing financial reporting. In April 2015, the FASB issued Accounting Standard Update 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, rather than as an asset. The standard does not affect the recognition and measurement of debt issuance costs. This guidance was adopted January 1, 2016. Accordingly, as of March 31, 2016 and December 31, 2015 , Registrant had debt issuance costs, excluding credit facility costs, of $4.5 million and $4.6 million , respectively, reflected in "Long-term debt." Prior to the adoption of this new guidance, debt issuance costs, excluding credit facility costs, of $4.6 million as of December 31, 2015 were reported in noncurrent "Other Assets." On February 25, 2016, the FASB issued a new lease accounting standard, Leases (ASC 842). Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required in order to provide greater insight into the extent of revenue and expense recognized, and expected to be recognized, from existing contracts. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management has not yet determined the effect of the standard on the Company's ongoing financial reporting. On March 30, 2016, the FASB issued Accounting Standard Update 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation - Stock Compensation. Under the new guidance, the tax effects related to share-based payments at settlement (or expiration) will be required to be recorded through the income statement rather than through equity, further increasing the volatility of income tax expense. The new standard also removes the requirement to delay recognition of a windfall tax benefit until an employer reduces its current taxes payable. It also permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for shared-based payment awards. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Management has not yet determined the effect of the standard on the Company's ongoing financial reporting. |
Regulatory Matters_
Regulatory Matters: | 3 Months Ended |
Mar. 31, 2016 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters: In accordance with accounting principles for rate-regulated enterprises, Registrant records regulatory assets, which represent probable future recovery of costs from customers through the ratemaking process, and regulatory liabilities, which represent probable future refunds that are to be credited to customers through the ratemaking process. At March 31, 2016 , Registrant had approximately $54.0 million of regulatory assets, net of regulatory liabilities, not accruing carrying costs. Of this amount, $23.7 million relates to the underfunded position in Registrant's pension and other post-retirement obligations, $7.2 million relates to a memorandum account authorized by the CPUC to track unrealized gains and losses on BVES' purchase power contracts over the term of the contracts, and $ 16.6 million relates to deferred income taxes representing accelerated tax benefits flowed through to customers, which will be included in rates concurrently with recognition of the associated future tax expense. The remainder relates to other items that do not provide for or incur carrying costs. Regulatory assets represent costs incurred by GSWC for which it has received or expects to receive rate recovery in the future. In determining the probability of costs being recognized in other periods, GSWC considers regulatory rules and decisions, past practices, and other facts or circumstances that would indicate if recovery is probable. If the CPUC determines that a portion of GSWC’s assets are not recoverable in customer rates, GSWC must determine if it has suffered an asset impairment that requires it to write-down the assets’ value. Regulatory assets are offset against regulatory liabilities within each rate-making area. Amounts expected to be collected or refunded in the next 12-months have been classified as current assets and current liabilities by rate-making area. Regulatory assets, less regulatory liabilities, included in the consolidated balance sheets are as follows: (dollars in thousands) March 31, December 31, GSWC Water Revenue Adjustment Mechanism, net of Modified Cost Balancing Account $ 53,948 $ 45,171 Costs deferred for future recovery on Aerojet case 12,567 12,699 Pensions and other post-retirement obligations (Note 7) 25,538 21,996 Derivative unrealized loss (Note 4) 7,245 7,053 Flow-through taxes, net (Note 6) 16,551 16,176 Low income rate assistance balancing accounts 8,810 8,699 Other regulatory assets 25,298 25,668 Various refunds to customers (5,759 ) (4,766 ) Total $ 144,198 $ 132,696 Regulatory matters are discussed in detail in the consolidated financial statements and the notes thereto included in the Form 10-K for the year ended December 31, 2015 filed with the SEC. The discussion below focuses on significant matters and developments since December 31, 2015 . Alternative-Revenue Programs: GSWC records the difference between what it bills its water customers and that which is authorized by the CPUC using the Water Revenue Adjustment Mechanism (“WRAM”) and Modified Cost Balancing Account (“MCBA”) accounts approved by the CPUC. The over- or under-collection of the WRAM is netted against the MCBA over- or under-collection for the corresponding rate-making area and bears interest at the current 90 -day commercial paper rate. GSWC has implemented surcharges to recover its WRAM/MCBA balances as of December 31, 2015. For the three months ended March 31, 2016 and 2015 , surcharges (net of surcredits) of approximately $1.4 million and $600,000 , respectively, were billed to customers to recover previously incurred under-collections in the WRAM/MCBA accounts. During the three months ended March 31, 2016 , GSWC recorded additional net under-collections in the WRAM/MCBA accounts of $10.1 million using 2015 adopted revenues since the CPUC has not approved the pending water rate case, which will set new rates for the years 2016 - 2018 as discussed below. As of March 31, 2016 , GSWC had a net aggregated regulatory asset of $ 53.9 million which is comprised of a $ 55.0 million under-collection in the WRAM accounts and $1.1 million over-collection in the MCBA accounts. As required by the accounting guidance for alternative revenue programs, GSWC is required to collect its WRAM balances, net of its MCBA, within 24 months following the year in which an under-collection is recorded. In April 2012, the CPUC issued a final decision which, among other things, sets the recovery period for under-collected balances that are up to 15% of adopted annual revenues at 18 months or less. For under-collected balances greater than 15% , the recovery period is 19 to 36 months. In addition to adopting a new amortization schedule, the final decision sets a cap on total net WRAM/MCBA surcharges in any given calendar year of 10% of the last authorized revenue requirement. As of March 31, 2016, the recovery periods for the majority of GSWC's WRAM/MCBA balances are primarily within the 12 to 18 -month period; however, there were some ratemaking areas that had recovery periods related to the 2015 WRAM balances greater than 24 months . As a result, during the fourth quarter of 2015, GSWC did not record $1.4 million of the 2015 WRAM under-collection balance as revenue. This amount will be recognized as revenue in future periods when it is determined that the amounts will be collected within 24 months . In February 2016, GSWC filed with the CPUC for recovery of the 2015 WRAM balances, including the $1.4 million . Other Regulatory Matters: Pending Water General Rate Case: In 2014, GSWC filed a general rate case (“GRC”) for all of its water regions and the general office to determine new rates for the years 2016-2018. A final decision is expected sometime during 2016. Once the decision is issued, the rates will be retroactive to January 1, 2016. GSWC has settled with the CPUC's Office of Ratepayer Advocates ("ORA") the majority of GSWC’s operating expenses, as well as the consumption levels used to calculate rates for 2016-2018, which reflect the state-mandated conservation targets. The primary unresolved issues relate to GSWC’s capital budget requests and compensation for managerial level employees. At this time, GSWC cannot predict the final outcome of this GRC. The final decision, once issued, could result in a material change to GSWC's net income recorded during the first quarter of 2016, which would need to be adjusted in the quarter that the final decision is issued. Year-to-date 2016 billed revenue has been based on 2015 adopted rates established in the prior GRC. The adopted revenues for 2016, once the CPUC issues a final decision in the current GRC, are expected to be lower than the 2015 adopted levels due primarily to decreases in supply costs caused by lower consumption, depreciation expense resulting from an updated depreciation study, and other operating expenses. As a result of the anticipated reduction in the 2016 adopted revenue level, GSWC has adjusted its water revenues downward for the three months ended March 31, 2016 with corresponding decreases to supply costs, depreciation expense and certain other expenses, to reflect the settled positions with ORA. The adjustment to 2016 recorded water revenues also reflects GSWC’s positions on unresolved capital budget and compensation related issues in the pending GRC. These adjustments did not have a significant impact to pretax operating income for the three months ended March 31, 2016 as the overall reduction in the water margin is mostly offset by the lower depreciation and other operating expenses. Procurement Audits: In December 2011, the CPUC issued a final decision adopting a settlement between GSWC and the CPUC on its investigation of certain work orders and charges paid to a specific contractor used previously for numerous construction projects primarily in one of GSWC's three main geographic water regions. As part of the settlement reached with the CPUC on this matter, GSWC agreed to be subject to three separate independent audits of its procurement practices over a period of 10 years from the date the settlement was approved by the CPUC. The audits cover GSWC’s procurement practices for contracts with other contractors from 1994 forward. The first audit started in 2014 and covered almost a 20 -year period from January 1, 1994 through September 30, 2013. In March 2015, the accounting firm engaged by the CPUC to conduct the first independent audit issued its final report to the CPUC’s Division of Water and Audits (“DWA”). The final report, which was issued on a confidential basis, included GSWC's responses to the accounting firm’s findings, as well as the firm’s responses to GSWC's comments. DWA informed GSWC that it does not intend to pursue further investigation, refunds, or penalties in respect of past procurement activities as a result of the final report. Furthermore, in June 2015 the CPUC's Office of Ratepayer Advocates ("ORA") notified the administrative law judge in the ongoing general rate case that, having reviewed the final audit report, its potential concerns with the audit report were satisfied and, as such, ORA withdrew its request to have further review of this matter in the pending general rate case. At this time, GSWC does not believe that a loss associated with any disallowances and/or penalties from this first audit is likely. |
Earnings per Share_Capital Stoc
Earnings per Share/Capital Stock: | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share/Capital Stock | Earnings per Share/Capital Stock: In accordance with the accounting guidance for participating securities and earnings per share (“EPS”), Registrant uses the “two-class” method of computing EPS. The “two-class” method is an earnings allocation formula that determines EPS for each class of common stock and participating security. AWR has participating securities related to restricted stock units that earn dividend equivalents on an equal basis with AWR’s Common Shares that have been issued under AWR's 2000 and 2008 Stock Incentive Plans and the 2003 and 2013 Non-Employee Directors Stock Plans. In applying the “two-class” method, undistributed earnings are allocated to both common shares and participating securities. The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used for calculating basic net income per share: Basic : For The Three Months Ended March 31, (in thousands, except per share amounts) 2016 2015 Net income $ 10,150 $ 12,149 Less: (a) Distributed earnings to common shareholders 8,181 8,138 Distributed earnings to participating securities 45 45 Undistributed earnings 1,924 3,966 (b) Undistributed earnings allocated to common shareholders 1,914 3,945 Undistributed earnings allocated to participating securities 10 21 Total income available to common shareholders, basic (a)+(b) $ 10,095 $ 12,083 Weighted average Common Shares outstanding, basic 36,521 38,205 Basic earnings per Common Share $ 0.28 $ 0.32 Diluted EPS is based upon the weighted average number of Common Shares, including both outstanding shares and shares potentially issuable in connection with stock options and restricted stock units granted under AWR’s 2000 and 2008 Stock Incentive Plans, and the 2003 and 2013 Non-Employee Directors Stock Plans, and net income. At March 31, 2016 and 2015 , there were 142,402 and 198,764 options outstanding, respectively, under these Plans. At March 31, 2016 and 2015 , there were also 215,129 and 226,319 restricted stock units outstanding, respectively, including performance shares awarded to officers of the Registrant. The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating diluted net income per share: Diluted : For The Three Months Ended March 31, (in thousands, except per share amounts) 2016 2015 Common shareholders earnings, basic $ 10,095 $ 12,083 Undistributed earnings for dilutive stock-based awards 10 21 Total common shareholders earnings, diluted $ 10,105 $ 12,104 Weighted average common shares outstanding, basic 36,521 38,205 Stock-based compensation (1) 176 203 Weighted average common shares outstanding, diluted 36,697 38,408 Diluted earnings per Common Share $ 0.28 $ 0.32 (1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 142,402 and 198,764 stock options at March 31, 2016 and 2015 , respectively, were deemed to be outstanding in accordance with the accounting guidance on earnings per share. All of the 215,129 and 226,319 restricted stock units at March 31, 2016 and 2015 , respectively, were included in the calculation of diluted EPS for the three months ended March 31, 2016 and 2015 . No stock options outstanding at March 31, 2016 had an exercise price greater than the average market price of AWR’s Common Shares for the three months ended March 31, 2016 . There were no stock options outstanding at March 31, 2016 or 2015 that were anti-dilutive. During the three months ended March 31, 2016 and 2015 , AWR issued 52,153 and 47,422 common shares for approximately $ 126,000 and $ 292,000 , respectively, under Registrant’s Common Share Purchase and Dividend Reinvestment Plan, the 401(k) Plan, the 2000 and 2008 Stock Incentive Plans and the 2003 and 2013 Non-Employee Directors Stock Plans. On March 27, 2014, AWR's Board of Directors approved a stock repurchase program, authorizing AWR to repurchase up to 1.25 million shares of its Common Shares from time to time through June 30, 2016. Pursuant to this program, Registrant repurchased 356,769 Common Shares on the open market during the three months ended March 31, 2015. This stock repurchase program was completed in 2015. During the three months ended March 31, 2016 and 2015 , AWR paid quarterly dividends of approximately $8.2 million , or $0.224 per share, and $8.2 million , or $0.213 per share, respectively. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments: Derivative financial instruments are used to manage exposure to commodity price risk. Commodity price risk represents the potential impact that can be caused by a change in the market value of a particular commodity. BVES purchases power under long-term contracts at a fixed cost depending on the amount of power and the period during which the power is purchased under such contracts. In December 2014, the CPUC approved an application that allowed BVES to immediately execute new long-term purchased power contracts with energy providers on December 9, 2014. BVES began taking power under these long-term contracts effective January 1, 2015 at a fixed cost over three and five year terms depending on the amount of power and period during which the power is purchased under the contracts. The long-term contracts executed in December 2014 are subject to the accounting guidance for derivatives and require mark-to-market derivative accounting. Among other things, the CPUC also authorized GSWC to establish a regulatory asset and liability memorandum account to offset the mark-to-market entries required by the accounting guidance. Accordingly, all unrealized gains and losses generated from the purchased power contracts executed in December 2014 are deferred on a monthly basis into a non-interest bearing regulatory memorandum account that tracks the changes in fair value of the derivative throughout the term of the contract. As a result, these unrealized gains and losses do not impact GSWC’s earnings. As of March 31, 2016 , there was a $7.2 million unrealized loss in the memorandum account for the purchased power contracts as a result of the recent drop in energy prices. The notional volume of derivatives remaining under these long-term contracts as of March 31, 2016 was approximately 457,000 megawatt hours. The accounting guidance for fair value measurements applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. Under the accounting guidance, GSWC makes fair value measurements that are classified and disclosed in one of the following three categories: Level 1 : Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 : Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; or Level 3 : Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). To value the contract, Registrant applies the Black-76 model, utilizing various inputs that include quoted market prices for energy over the duration of the contract. The market prices used to determine the fair value for this derivative instrument were estimated based on independent sources such as broker quotes and publications that are not observable in or corroborated by the market. Registrant received one broker quote to determine the fair value of its derivative instrument. When such inputs have a significant impact on the measurement of fair value, the instrument is categorized as Level 3. Accordingly, the valuation of the derivative on Registrant’s purchased power contract has been classified as Level 3 for all periods presented. The following table presents changes in the fair value of GSWC’s Level 3 derivatives for the three months ended March 31, 2016 and 2015 : (dollars in thousands) 2016 2015 Fair value at beginning of the period $ (7,053 ) $ (3,339 ) Unrealized loss on purchased power contracts (192 ) (2,837 ) Fair value at end of the period $ (7,245 ) $ (6,176 ) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments: | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: For cash and cash equivalents, accounts receivable, accounts payable and short-term debt, the carrying amount is assumed to approximate fair value due to the short-term nature of the amounts. Investments held in a Rabbi Trust for the supplemental executive retirement plan are measured at fair value and totaled $10.0 million as of March 31, 2016 . All equity investments in the Rabbi Trust are Level 1 investments in mutual funds. The investments held in the Rabbi Trust are included in Other Property and Investments on Registrant's balance sheets. The table below estimates the fair value of long-term debt held by GSWC. The fair values as of March 31, 2016 and December 31, 2015 were determined using rates for similar financial instruments of the same duration utilizing Level 2 methods and assumptions. The interest rates used for the March 31, 2016 valuation decreased as compared to December 31, 2015 , increasing the fair value of long-term debt as of March 31, 2016 . Changes in the assumptions will produce differing results. March 31, 2016 December 31, 2015 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Long-term debt—GSWC (1) $ 325,776 $ 418,104 $ 325,853 $ 403,844 (1) Excludes debt issuance costs and redemption premiums. |
Income Taxes_
Income Taxes: | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: As a regulated utility, GSWC treats certain temporary differences as flow-through adjustments in computing its income tax provision consistent with the income tax approach approved by the CPUC for ratemaking purposes. Flow-through adjustments increase or decrease tax expense in one period, with an offsetting decrease or increase occurring in another period. Giving effect to these temporary differences as flow-through adjustments typically results in a greater variance between the effective tax rate (“ETR”) and the statutory federal income tax rate in any given period than would otherwise exist if GSWC were not required to account for its income taxes as a regulated enterprise. The GSWC ETR was 37.7% and 41.1% for the three months ended March 31, 2016 and 2015 , respectively. The GSWC ETRs deviate from the statutory rate primarily due to state tax and differences between book and taxable income that are treated as flow-through adjustments in accordance with regulatory requirements (principally plant-, rate-case- and compensation-related items). The ETR at the AWR consolidated level may also fluctuate as a result of certain permanent differences recorded at AWR (parent) and ASUS and its subsidiaries, as well as state taxes recorded at AWR (parent) and ASUS and its subsidiaries (where the amounts of state taxes vary among the jurisdictions in which they operate). Changes in Tax Law: In December 2015, the Protecting Americans From Tax Hikes Act of 2015 extended bonus depreciation for qualifying property through 2019. For 2015 through 2017, bonus depreciation was extended at a 50% rate. For 2018-2019, bonus depreciation will be phased down to 40% and 30%, respectively. Although the change in law reduces AWR’s current taxes payable over these years, it does not reduce its total income tax expense or ETR. |
Employee Benefit Plans_
Employee Benefit Plans: | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans: The components of net periodic benefit costs, before allocation to the overhead pool, for Registrant’s pension plan, postretirement plan and Supplemental Executive Retirement Plan ("SERP") for the three months ended March 31, 2016 and 2015 are as follows: For The Three Months Ended March 31, Pension Benefits Other Postretirement Benefits SERP (dollars in thousands) 2016 2015 2016 2015 2016 2015 Components of Net Periodic Benefits Cost: Service cost $ 1,232 $ 1,686 $ 68 $ 95 $ 200 $ 204 Interest cost 1,930 1,939 97 114 186 163 Expected return on plan assets (2,460 ) (2,446 ) (122 ) (123 ) — — Amortization of transition — — — — — — Amortization of prior service cost (benefit) 12 30 (9 ) (50 ) 6 29 Amortization of actuarial (gain) loss 127 469 (150 ) (53 ) 73 108 Net periodic pension cost under accounting standards 841 1,678 (116 ) (17 ) 465 504 Regulatory adjustment — deferred 359 11 — — — — Total expense recognized, before allocation to overhead pool $ 1,200 $ 1,689 $ (116 ) $ (17 ) $ 465 $ 504 Registrant expects to contribute approximately $5.5 million to its pension plan during 2016. During 2015, Registrant updated key assumptions used for the valuation of the pension, post-retirement and supplemental executive retirement plans. These updates included: (i) an increase in the discount rates; (ii) updates in demographic assumptions, such as retirement and termination rates, to reflect recent changes in participant behavior, and (iii) salary increases based on Registrant’s recent and future expected experience. As a result of these updates in actuarial assumptions, as well as the pension plan closure to new employees hired after December 31, 2010, net periodic benefit costs decreased for the three months ended March 31, 2016 as compared to the same period in 2015. Regulatory Adjustment : As authorized by the CPUC in the most recent water and electric general rate case decisions, GSWC utilizes two-way balancing accounts for its water and electric regions and the general office to track differences between the forecasted annual pension expenses in rates or expected to be in rates and the actual annual expense recorded by GSWC in accordance with the accounting guidance for pension costs. As of March 31, 2016 , GSWC has a total $1.8 million net under-collection in the two-way pension balancing accounts included as part of the pension regulatory asset (Note 2). |
Contingencies_
Contingencies: | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies: Condemnation of Properties : The laws of the State of California provide for the acquisition of public utility property by governmental agencies through their power of eminent domain, also known as condemnation, where doing so is necessary and in the public interest. In addition, these laws provide that the owner of utility property (i) may contest whether the condemnation is actually necessary and in the public interest, and (ii) is entitled to receive the fair market value of its property if the property is ultimately taken. Claremont System: In December 2014, the City of Claremont filed a complaint in eminent domain against GSWC. GSWC plans to vigorously defend against the eminent domain action. The trial determining the City’s rights to seize the system by eminent domain is scheduled to begin on June 13, 2016. At this time, management cannot predict the outcome of the eminent domain proceeding. The Claremont water system has a net book value of approximately $49.1 million . GSWC serves approximately 11,000 customers in Claremont. Ojai System: In March 2013, Casitas Municipal Water District ("CMWD") passed resolutions under the Mello-Roos Communities Facilities District Act of 1982 ("Mello-Roos Act") authorizing the establishment of a Community Facilities District, and the issuance of bonds to finance the potential acquisition of GSWC’s Ojai system through eminent domain. In February 2016, CMWD made an offer to acquire GSWC's water system servicing Ojai. GSWC rejected the offer and informed CMWD that the system is not for sale. At this time, management cannot predict the outcome of the eminent domain proceeding; however, management believes that it is likely that CMWD will file an eminent domain lawsuit in the near future. In April 2016, CMWD adopted a resolution of necessity to acquire the water system. GSWC serves approximately 3,000 customers in Ojai. Environmental Clean-Up and Remediation : GSWC has been involved in environmental remediation and cleanup at a plant site ("Chadron Plant") that contained an underground storage tank which was used to store gasoline for its vehicles. This tank was removed from the ground in July 1990 along with the dispenser and ancillary piping. Since then, GSWC has been involved in various remediation activities at this site. Analysis indicates that offsite monitoring wells may also be necessary to document effectiveness of remediation. As of March 31, 2016 , the total spent to clean-up and remediate GSWC’s plant facility was approximately $ 5 million , of which $ 1.5 million has been paid by the State of California Underground Storage Tank Fund. Amounts paid by GSWC have been included in rate base and approved by the CPUC for recovery. As of March 31, 2016 , GSWC has a regulatory asset and an accrued liability for the estimated additional cost of $ 1.4 million to complete the cleanup at the site. The estimate includes costs for two years of continued activities of groundwater cleanup and monitoring, future soil treatment and site-closure-related activities. The ultimate cost may vary as there are many unknowns in remediation of underground gasoline spills and this is an estimate based on currently available information. Management also believes it is probable that the estimated additional costs will be approved in rate base by the CPUC. Other Litigation : Registrant is also subject to other ordinary routine litigation incidental to its business. Management believes that rate recovery, proper insurance coverage and reserves are in place to insure against property, general liability and workers’ compensation claims incurred in the ordinary course of business. Registrant is unable to predict an estimate of the loss, if any, resulting from any pending suits or administrative proceedings. |
Business Segments_
Business Segments: | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments: AWR has three reportable segments, water, electric and contracted services, whereas GSWC has two segments, water and electric. On a stand-alone basis, AWR has no material assets other than its investments in its subsidiaries on a stand-alone basis. All activities of GSWC, a rate-regulated utility, are geographically located within California. Activities of ASUS and its subsidiaries are conducted in California, Georgia, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia. Each of ASUS’s wholly-owned subsidiaries is regulated by the state in which the subsidiary primarily conducts water and/or wastewater operations. Fees charged for operations and maintenance and renewal and replacement services are based upon the terms of the contracts with the U.S. government which have been filed, as appropriate, with the commissions in the states in which ASUS’s subsidiaries are incorporated. The tables below set forth information relating to GSWC’s operating segments, ASUS and its subsidiaries and other matters. Total assets by segment are not presented below, as certain of Registrant’s assets are not tracked by segment. The utility plant amounts are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash and exclude U.S. government-funded and third-party prime contractor funded capital expenditures for ASUS and property installed by developers and conveyed to GSWC. As Of And For The Three Months Ended March 31, 2016 GSWC AWR Consolidated (dollars in thousands) Water Electric ASUS Parent AWR Operating revenues $ 66,312 $ 10,573 $ 16,642 $ — $ 93,527 Operating income (loss) 17,408 2,235 1,592 (2 ) 21,233 Interest expense, net 5,075 325 7 44 5,451 Utility plant 1,022,525 51,873 4,920 — 1,079,318 Depreciation and amortization expense (1) 9,023 507 261 — 9,791 Income tax expense (benefit) 4,586 854 573 (200 ) 5,813 Capital additions 28,141 820 493 — 29,454 As Of And For The Three Months Ended March 31, 2015 GSWC AWR Consolidated (dollars in thousands) Water Electric ASUS Parent AWR Operating revenues $ 71,504 $ 10,969 $ 18,460 $ — $ 100,933 Operating income (loss) 19,741 2,732 2,420 (3 ) 24,890 Interest expense, net 4,801 313 8 (6 ) 5,116 Utility plant 958,270 44,871 4,422 — 1,007,563 Depreciation and amortization expense (1) 9,941 300 307 — 10,548 Income tax expense (benefit) 6,144 1,103 871 (220 ) 7,898 Capital additions 16,244 1,074 72 — 17,390 (1) Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $175,000 and $223,000 for the three months ended March 31, 2016 and 2015 , respectively. The following table reconciles total utility plant (a key figure for rate-making) to total consolidated assets (in thousands): March 31, 2016 2015 Total utility plant $ 1,079,318 $ 1,007,563 Other assets 289,573 354,939 Total consolidated assets (2) $ 1,368,891 $ 1,362,502 (2) Total consolidated assets shown as of March 31, 2015 exclude $4.9 million of debt issuance costs, (except for credit facility costs), which were previously reported as "Other assets" prior to adoption of Accounting Standard Update 2015-03, Simplifying the Presentation of Debt Issuance Costs as disclosed in Note 1. Credit facility costs continue to be reported as "Other assets." |
Summary of Significant Accoun15
Summary of Significant Accounting Policies: (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations : American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”) and American States Utility Services, Inc. (“ASUS”) (and its subsidiaries, Fort Bliss Water Services Company (“FBWS”), Terrapin Utility Services, Inc. (“TUS”), Old Dominion Utility Services, Inc. (“ODUS”), Palmetto State Utility Services, Inc. (“PSUS”) and Old North Utility Services, Inc. (“ONUS”)). The subsidiaries of ASUS are collectively referred to as the “Military Utility Privatization Subsidiaries.” GSWC is a public utility engaged principally in the purchase, production, distribution and sale of water in California serving approximately 260,000 customers. GSWC also distributes electricity in several San Bernardino County mountain communities in California serving approximately 24,000 customers through its Bear Valley Electric Service (“BVES”) division. Although Registrant has a diversified base of residential, industrial and other customers, revenues derived from commercial and residential water customers accounted for approximately 90% of total water revenues during the three months ended March 31, 2016 and 2015 . The California Public Utilities Commission (“CPUC”) regulates GSWC’s water and electric businesses in matters including properties, rates, services, facilities and transactions by GSWC with its affiliates. AWR’s assets and operating income are primarily those of GSWC. ASUS, through its wholly owned subsidiaries, operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various United States military bases pursuant to 50 -year firm fixed-price contracts. These contracts are subject to periodic price redeterminations or economic price adjustments and modifications for changes in circumstances, changes in laws and regulations and additions to the contract value for new construction of facilities at the military bases. There is no direct regulatory oversight by the CPUC over AWR or the operations, rates or services provided by ASUS or any of its wholly owned subsidiaries. Basis of Presentation : The consolidated financial statements and notes thereto are presented in a combined report filed by two separate Registrants: AWR and GSWC. References in this report to “Registrant” are to AWR and GSWC, collectively, unless otherwise specified. AWR owns all of the outstanding Common Shares of GSWC and ASUS. ASUS owns all of the outstanding Common Shares of the Military Utility Privatization Subsidiaries. The consolidated financial statements of AWR include the accounts of AWR and its subsidiaries, all of which are wholly owned. These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. Inter-company transactions and balances have been eliminated in the AWR consolidated financial statements. The consolidated financial statements included herein have been prepared by Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The December 31, 2015 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles ("GAAP") in the United States of America. The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. In the opinion of management, all adjustments consisting of normal, recurring items and estimates necessary for a fair statement of the results for the interim periods have been made. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Form 10-K for the year ended December 31, 2015 filed with the SEC. |
GSWC's Related Party Transactions | GSWC's Related Party Transactions : GSWC and ASUS provide and/or receive various support services to and from their parent, AWR, and among themselves. GSWC also allocates certain corporate office administrative and general costs to its affiliate, ASUS, using allocation factors approved by the CPUC. During the three months ended March 31, 2016 and 2015 , GSWC allocated to ASUS approximately $1.0 million and $707,000 , respectively, of corporate office administrative and general costs. In addition, AWR has a $100.0 million syndicated credit facility. AWR borrows under this facility and provides funds to its subsidiaries, including GSWC, in support of their operations. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest cost under the credit facility. In October 2015, AWR issued interest bearing promissory notes (the "Notes") to GSWC and ASUS for $40 million and $10 million , respectively, which expire on May 23, 2018. Under the terms of these Notes, AWR may borrow from GSWC and ASUS amounts up to $40 million and $10 million , respectively, for working capital purposes. AWR agrees to pay any unpaid principal amounts outstanding under these notes, plus accrued interest. As of March 31, 2016 , there were no amounts outstanding under these Notes. |
Sales and Use Taxes | Sales and Use Taxes : GSWC bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which GSWC pays to various municipalities (based on ordinances adopted by these municipalities) in order to use public rights of way for utility purposes. GSWC bills these franchise fees to its customers based on a CPUC-authorized rate for each rate-making area as applicable. These franchise fees, which are required to be paid regardless of GSWC’s ability to collect them from its customer, are accounted for on a gross basis. GSWC’s franchise fees billed to customers and recorded as operating revenue were approximately $867,000 and $871,000 for the three months ended March 31, 2016 and 2015 , respectively. When GSWC acts as an agent, and the tax is not required to be remitted if it is not collected from the customer, the taxes are accounted for on a net basis. Depending on the states in which their operations are conducted, the Military Utility Privatization Subsidiaries are also subject to certain state non-income tax assessments generally computed on a “gross receipts” or “gross revenues” basis. These non-income tax assessments are required to be paid regardless of whether the U.S. government reimburses these assessments under the 50 -year contracts. The non-income tax assessments are accounted for on a gross basis and totaled $ 62,000 and $ 32,000 during the three months ended March 31, 2016 and 2015 , respectively. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements : In May 2014, the Financial Accounting Standards Board ("FASB") issued updated accounting guidance on revenue recognition. The guidance will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. Under this guidance, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what the entity expects in exchange for the goods or services. The guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and adoption is not permitted earlier than the original effective date, that is, no earlier than 2017. The guidance allows entities to select one of two methods of adoption, either the full retrospective approach, meaning the guidance would be applied to all periods presented, or modified retrospective approach, meaning the cumulative effect of applying the guidance would be recognized as an adjustment to opening retained earnings at January 1, 2018, along with providing certain additional disclosures. Registrant will adopt this guidance in the fiscal year beginning January 1, 2018. Management has not yet selected a transition method nor has it determined the effect of the standard on the Company's ongoing financial reporting. In April 2015, the FASB issued Accounting Standard Update 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, rather than as an asset. The standard does not affect the recognition and measurement of debt issuance costs. This guidance was adopted January 1, 2016. Accordingly, as of March 31, 2016 and December 31, 2015 , Registrant had debt issuance costs, excluding credit facility costs, of $4.5 million and $4.6 million , respectively, reflected in "Long-term debt." Prior to the adoption of this new guidance, debt issuance costs, excluding credit facility costs, of $4.6 million as of December 31, 2015 were reported in noncurrent "Other Assets." On February 25, 2016, the FASB issued a new lease accounting standard, Leases (ASC 842). Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required in order to provide greater insight into the extent of revenue and expense recognized, and expected to be recognized, from existing contracts. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management has not yet determined the effect of the standard on the Company's ongoing financial reporting. On March 30, 2016, the FASB issued Accounting Standard Update 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation - Stock Compensation. Under the new guidance, the tax effects related to share-based payments at settlement (or expiration) will be required to be recorded through the income statement rather than through equity, further increasing the volatility of income tax expense. The new standard also removes the requirement to delay recognition of a windfall tax benefit until an employer reduces its current taxes payable. It also permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for shared-based payment awards. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Management has not yet determined the effect of the standard on the Company's ongoing financial reporting. |
Regulatory Matters_ (Tables)
Regulatory Matters: (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Regulated Operations [Abstract] | |
Schedule of regulatory assets, less regulatory liabilities in the consolidated balance sheets for continuing operations | Regulatory assets, less regulatory liabilities, included in the consolidated balance sheets are as follows: (dollars in thousands) March 31, December 31, GSWC Water Revenue Adjustment Mechanism, net of Modified Cost Balancing Account $ 53,948 $ 45,171 Costs deferred for future recovery on Aerojet case 12,567 12,699 Pensions and other post-retirement obligations (Note 7) 25,538 21,996 Derivative unrealized loss (Note 4) 7,245 7,053 Flow-through taxes, net (Note 6) 16,551 16,176 Low income rate assistance balancing accounts 8,810 8,699 Other regulatory assets 25,298 25,668 Various refunds to customers (5,759 ) (4,766 ) Total $ 144,198 $ 132,696 |
Earnings per Share_Capital St17
Earnings per Share/Capital Stock: (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of Registrant's net income and weighted average Common Shares outstanding for calculating basic net income per share | The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used for calculating basic net income per share: Basic : For The Three Months Ended March 31, (in thousands, except per share amounts) 2016 2015 Net income $ 10,150 $ 12,149 Less: (a) Distributed earnings to common shareholders 8,181 8,138 Distributed earnings to participating securities 45 45 Undistributed earnings 1,924 3,966 (b) Undistributed earnings allocated to common shareholders 1,914 3,945 Undistributed earnings allocated to participating securities 10 21 Total income available to common shareholders, basic (a)+(b) $ 10,095 $ 12,083 Weighted average Common Shares outstanding, basic 36,521 38,205 Basic earnings per Common Share $ 0.28 $ 0.32 |
Schedule of reconciliation of Registrant's net income and weighted average Common Shares outstanding for calculating diluted net income per share | The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating diluted net income per share: Diluted : For The Three Months Ended March 31, (in thousands, except per share amounts) 2016 2015 Common shareholders earnings, basic $ 10,095 $ 12,083 Undistributed earnings for dilutive stock-based awards 10 21 Total common shareholders earnings, diluted $ 10,105 $ 12,104 Weighted average common shares outstanding, basic 36,521 38,205 Stock-based compensation (1) 176 203 Weighted average common shares outstanding, diluted 36,697 38,408 Diluted earnings per Common Share $ 0.28 $ 0.32 (1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 142,402 and 198,764 stock options at March 31, 2016 and 2015 , respectively, were deemed to be outstanding in accordance with the accounting guidance on earnings per share. All of the 215,129 and 226,319 restricted stock units at March 31, 2016 and 2015 , respectively, were included in the calculation of diluted EPS for the three months ended March 31, 2016 and 2015 . |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
GOLDEN STATE WATER COMPANY | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents changes in the fair value of GSWC’s Level 3 derivatives for the three months ended March 31, 2016 and 2015 : (dollars in thousands) 2016 2015 Fair value at beginning of the period $ (7,053 ) $ (3,339 ) Unrealized loss on purchased power contracts (192 ) (2,837 ) Fair value at end of the period $ (7,245 ) $ (6,176 ) |
Fair Value of Financial Instr19
Fair Value of Financial Instruments: (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
GSWC | |
Fair value of financial instruments | |
Schedule of estimates of the fair value of long-term debt | The table below estimates the fair value of long-term debt held by GSWC. The fair values as of March 31, 2016 and December 31, 2015 were determined using rates for similar financial instruments of the same duration utilizing Level 2 methods and assumptions. The interest rates used for the March 31, 2016 valuation decreased as compared to December 31, 2015 , increasing the fair value of long-term debt as of March 31, 2016 . Changes in the assumptions will produce differing results. March 31, 2016 December 31, 2015 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Long-term debt—GSWC (1) $ 325,776 $ 418,104 $ 325,853 $ 403,844 (1) Excludes debt issuance costs and redemption premiums. |
Employee Benefit Plans_ (Tables
Employee Benefit Plans: (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of components of net periodic benefit costs, before allocation to the overhead pool, for Registrant's pension plan, postretirement plan, and SERP | The components of net periodic benefit costs, before allocation to the overhead pool, for Registrant’s pension plan, postretirement plan and Supplemental Executive Retirement Plan ("SERP") for the three months ended March 31, 2016 and 2015 are as follows: For The Three Months Ended March 31, Pension Benefits Other Postretirement Benefits SERP (dollars in thousands) 2016 2015 2016 2015 2016 2015 Components of Net Periodic Benefits Cost: Service cost $ 1,232 $ 1,686 $ 68 $ 95 $ 200 $ 204 Interest cost 1,930 1,939 97 114 186 163 Expected return on plan assets (2,460 ) (2,446 ) (122 ) (123 ) — — Amortization of transition — — — — — — Amortization of prior service cost (benefit) 12 30 (9 ) (50 ) 6 29 Amortization of actuarial (gain) loss 127 469 (150 ) (53 ) 73 108 Net periodic pension cost under accounting standards 841 1,678 (116 ) (17 ) 465 504 Regulatory adjustment — deferred 359 11 — — — — Total expense recognized, before allocation to overhead pool $ 1,200 $ 1,689 $ (116 ) $ (17 ) $ 465 $ 504 |
Business Segments_ (Tables)
Business Segments: (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of reporting segments information | The tables below set forth information relating to GSWC’s operating segments, ASUS and its subsidiaries and other matters. Total assets by segment are not presented below, as certain of Registrant’s assets are not tracked by segment. The utility plant amounts are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash and exclude U.S. government-funded and third-party prime contractor funded capital expenditures for ASUS and property installed by developers and conveyed to GSWC. As Of And For The Three Months Ended March 31, 2016 GSWC AWR Consolidated (dollars in thousands) Water Electric ASUS Parent AWR Operating revenues $ 66,312 $ 10,573 $ 16,642 $ — $ 93,527 Operating income (loss) 17,408 2,235 1,592 (2 ) 21,233 Interest expense, net 5,075 325 7 44 5,451 Utility plant 1,022,525 51,873 4,920 — 1,079,318 Depreciation and amortization expense (1) 9,023 507 261 — 9,791 Income tax expense (benefit) 4,586 854 573 (200 ) 5,813 Capital additions 28,141 820 493 — 29,454 As Of And For The Three Months Ended March 31, 2015 GSWC AWR Consolidated (dollars in thousands) Water Electric ASUS Parent AWR Operating revenues $ 71,504 $ 10,969 $ 18,460 $ — $ 100,933 Operating income (loss) 19,741 2,732 2,420 (3 ) 24,890 Interest expense, net 4,801 313 8 (6 ) 5,116 Utility plant 958,270 44,871 4,422 — 1,007,563 Depreciation and amortization expense (1) 9,941 300 307 — 10,548 Income tax expense (benefit) 6,144 1,103 871 (220 ) 7,898 Capital additions 16,244 1,074 72 — 17,390 (1) Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $175,000 and $223,000 for the three months ended March 31, 2016 and 2015 , respectively. |
Schedule of reconciliation of total utility plant (a key figure for rate-making) to total consolidated assets | The following table reconciles total utility plant (a key figure for rate-making) to total consolidated assets (in thousands): March 31, 2016 2015 Total utility plant $ 1,079,318 $ 1,007,563 Other assets 289,573 354,939 Total consolidated assets (2) $ 1,368,891 $ 1,362,502 (2) Total consolidated assets shown as of March 31, 2015 exclude $4.9 million of debt issuance costs, (except for credit facility costs), which were previously reported as "Other assets" prior to adoption of Accounting Standard Update 2015-03, Simplifying the Presentation of Debt Issuance Costs as disclosed in Note 1. Credit facility costs continue to be reported as "Other assets." |
Summary of Significant Accoun22
Summary of Significant Accounting Policies: (Details) customer in Thousands | 3 Months Ended | |||
Mar. 31, 2016USD ($)customerregistrant | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Oct. 27, 2015USD ($) | |
Basis of Presentation: | ||||
Number of registrants filing combined report | registrant | 2 | |||
Sales and Use Taxes: | ||||
Non-income tax assessments accounted on a gross basis | $ 4,378,000 | $ 4,276,000 | ||
Debt Issuance Cost | 4,500,000 | 4,900,000 | $ 4,600,000 | |
AWR | Syndicated Credit Facility | ||||
Related Party Transactions | ||||
Maximum borrowing capacity on line of credit | 100,000,000 | |||
GOLDEN STATE WATER COMPANY | ||||
Related Party Transactions | ||||
Payments to affiliate for corporate office administrative and general costs | 1,000,000 | 707,000 | ||
Sales and Use Taxes: | ||||
Franchise fees billed to customers and recorded as operating revenue | 867,000 | 871,000 | ||
Non-income tax assessments accounted on a gross basis | $ 3,987,000 | 3,918,000 | ||
GOLDEN STATE WATER COMPANY | Promissory Note | ||||
Related Party Transactions | ||||
Debt instrument, face amount | $ 40,000,000 | |||
Debt instrument, maximum borrowing capacity | 40,000,000 | |||
GOLDEN STATE WATER COMPANY | Purchase, production, distribution and sale of water | ||||
Nature of Operations: | ||||
Number of customers served | customer | 260 | |||
GOLDEN STATE WATER COMPANY | Electricity distribution | ||||
Nature of Operations: | ||||
Number of customers served | customer | 24 | |||
ASUS | ||||
Sales and Use Taxes: | ||||
Non-income tax assessments accounted on a gross basis | $ 62,000 | $ 32,000 | ||
ASUS | Promissory Note | ||||
Related Party Transactions | ||||
Debt instrument, face amount | 10,000,000 | |||
Debt instrument, maximum borrowing capacity | $ 10,000,000 | |||
ASUS | Contracts | ||||
Nature of Operations: | ||||
Period of fixed price contracts to operate and maintain the water and/or wastewater systems at various military bases | 50 years | |||
Sales and Use Taxes: | ||||
Period of fixed price contracts to operate and maintain the water and/or wastewater systems at various military bases | 50 years | |||
Sales | GOLDEN STATE WATER COMPANY | Purchase, production, distribution and sale of water | ||||
Nature of Operations: | ||||
Percentage of total revenue | 90.00% | |||
Notes Receivable [Member] | AWR | Promissory Note | ||||
Sales and Use Taxes: | ||||
Notes Receivable, Related Parties, Current | $ 0 |
Regulatory Matters_ (Details)
Regulatory Matters: (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Regulatory matters: | ||
Regulatory asset not accruing carrying costs | $ 54,000 | |
Pension and other post-retirement obligations | ||
Regulatory matters: | ||
Regulatory asset not accruing carrying costs | 23,700 | |
Derivative unrealized loss | ||
Regulatory matters: | ||
Regulatory asset not accruing carrying costs | 7,200 | |
Flow-through taxes, net | ||
Regulatory matters: | ||
Regulatory asset not accruing carrying costs | 16,600 | |
GOLDEN STATE WATER COMPANY | ||
Regulatory matters: | ||
Regulatory assets | 144,198 | $ 132,696 |
GOLDEN STATE WATER COMPANY | Water Revenue Adjustment Mechanism, net of Modified Cost Balancing Account | ||
Regulatory matters: | ||
Regulatory assets | 53,948 | 45,171 |
GOLDEN STATE WATER COMPANY | Costs deferred for future recovery on Aerojet case | ||
Regulatory matters: | ||
Regulatory assets | 12,567 | 12,699 |
GOLDEN STATE WATER COMPANY | Pension and other post-retirement obligations | ||
Regulatory matters: | ||
Regulatory assets | 25,538 | 21,996 |
GOLDEN STATE WATER COMPANY | Derivative unrealized loss | ||
Regulatory matters: | ||
Regulatory assets | 7,245 | 7,053 |
GOLDEN STATE WATER COMPANY | Flow-through taxes, net | ||
Regulatory matters: | ||
Regulatory assets | 16,551 | 16,176 |
GOLDEN STATE WATER COMPANY | Low income rate assistance balancing accounts | ||
Regulatory matters: | ||
Regulatory assets | 8,810 | 8,699 |
GOLDEN STATE WATER COMPANY | Other regulatory assets | ||
Regulatory matters: | ||
Regulatory assets | 25,298 | 25,668 |
Various refunds to customers | GOLDEN STATE WATER COMPANY | ||
Regulatory matters: | ||
Regulatory assets | $ (5,759) | $ (4,766) |
Regulatory Matters_ Alternative
Regulatory Matters: Alternative-Revenue Programs (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2012 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
WRAM, net of MCBA | ||||
Regulatory matters: | ||||
Increase (decrease) in other regulatory assets | $ 10,100 | |||
GOLDEN STATE WATER COMPANY | ||||
Regulatory matters: | ||||
Under (over) collection | $ 144,198 | $ 132,696 | ||
GOLDEN STATE WATER COMPANY | WRAM, net of MCBA | ||||
Regulatory matters: | ||||
Commercial paper, term | 90 days | |||
Amount billed to customers as surcharges | $ 1,400 | $ 600 | ||
Under (over) collection | 53,948 | $ 45,171 | ||
Under Collection Balances as Percentage of Adopted Annual Revenues | 15.00% | |||
annual surcharges as percentage of last authorized revenue requirement | 10.00% | |||
GOLDEN STATE WATER COMPANY | WRAM, net of MCBA | Minimum | ||||
Regulatory matters: | ||||
Recovery Period for under Collection, Balances Greater than 15 Percent of Adopted Annual Revenues | 19 months | 12 months | ||
GOLDEN STATE WATER COMPANY | WRAM, net of MCBA | Maximum | ||||
Regulatory matters: | ||||
Alternative Revenue Program | 24 months | |||
Recovery Period for under Collection, Balances Greater than 15 Percent of Adopted Annual Revenues | 18 months | |||
Recovery Period for under Collection Balances that are up to 15 Percent of Adopted Annual Revenues | 36 months | |||
GOLDEN STATE WATER COMPANY | WRAM | ||||
Regulatory matters: | ||||
Deferred Revenue | $ 1,400 | |||
Under (over) collection | 55,000 | |||
GOLDEN STATE WATER COMPANY | Modified Cost Balancing Account | ||||
Regulatory matters: | ||||
Under (over) collection | $ 1,100 |
Regulatory Matters_ CPUC Rehear
Regulatory Matters: CPUC Rehearing Matter and Procurement Audits (Details) - Audit | 1 Months Ended | 12 Months Ended |
Dec. 31, 2011 | Dec. 31, 2014 | |
Regulatory matters: | ||
Separate independent audits | 3 | |
Number of Years of Separate Independent Audits of Procurement Practices Agreed under Settlement Agreement | 10 years | |
GOLDEN STATE WATER COMPANY | ||
Regulatory matters: | ||
Period of Separate Independent Audits of Procurement Practices Covered by Report | 20 years |
Earnings per Share_Capital St26
Earnings per Share/Capital Stock: (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Basic | |||
Net income | $ 10,150 | $ 12,149 | |
Less: Distributed earnings to common shareholders | 8,181 | 8,138 | |
Less: Distributed earnings to participating securities | 45 | 45 | |
Undistributed earnings | 1,924 | 3,966 | |
Undistributed earnings allocated to common shareholders | 1,914 | 3,945 | |
Undistributed earnings allocated to participating securities | 10 | 21 | |
Total income available to common shareholders, basic | $ 10,095 | $ 12,083 | |
Weighted average Common Shares outstanding, basic (in shares) | 36,521 | 38,205 | |
Basic earnings per Common Share (in dollars per share) | $ 0.28 | $ 0.32 | |
Diluted | |||
Total income available to common shareholders, basic | $ 10,095 | $ 12,083 | |
Undistributed earnings for dilutive stock-based awards | 10 | 21 | |
Total common shareholders earnings, diluted | $ 10,105 | $ 12,104 | |
Weighted average Common Shares outstanding, basic (in shares) | 36,521 | 38,205 | |
Stock-based compensation (in shares) | [1] | 176 | 203 |
Weighted average common shares outstanding, diluted (in shares) | 36,697 | 38,408 | |
Diluted earnings per Common Share (in dollars per share) | $ 0.28 | $ 0.32 | |
[1] | In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 142,402 and 198,764 stock options at March 31, 2016 and 2015, respectively, were deemed to be outstanding in accordance with the accounting guidance on earnings per share. All of the 215,129 and 226,319 restricted stock units at March 31, 2016 and 2015, respectively, were included in the calculation of diluted EPS for the three months ended March 31, 2016 and 2015. |
Earnings per Share_Capital St27
Earnings per Share/Capital Stock: (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 27, 2014 | |
Additional disclosure | |||
Options outstanding (in shares) | 142,402 | 198,764 | |
Stock options not included in the calculation of diluted EPS (in shares) | 0 | ||
Anti-dilutive stock options not included in the computation of diluted EPS (in shares) | 0 | 0 | |
Common Shares issued under DRP and the 2000 and 2008 Employee Plans | 52,153 | 47,422 | |
Value of Common Shares issued under DRP and the 2000 and 2008 Employee Plans | $ 126 | $ 292 | |
Dividends paid | $ 8,181 | $ 8,155 | |
Quarterly dividends paid, per share of common stock (in dollars per share) | $ 0.224 | $ 0.213 | |
Restricted Stock Units | |||
Additional disclosure | |||
Restricted stock units outstanding (in shares) | 215,129 | 226,319 | |
AWR | |||
Additional disclosure | |||
Authorized shares to be repurchased | 1,250,000 | ||
AWR | |||
Additional disclosure | |||
Common Shares repurchased in the open market under DRP and 401(k) Plan | 356,769 |
Derivative Instruments (Details
Derivative Instruments (Details) - GOLDEN STATE WATER COMPANY MWh in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)MWh | Mar. 31, 2015USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Description of derivative activity volume | MWh | 457 | |
Commodity Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of broker quotes received to determine fair value of derivative instrument | 1 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at end of the period | $ (7,053) | $ (3,339) |
Unrealized loss on purchased power contracts | (192) | (2,837) |
Fair value at end of the period | $ (7,245) | $ (6,176) |
Minimum | Commodity Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Term of derivative contract | 3 years | |
Maximum | Commodity Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Term of derivative contract | 5 years |
Fair Value of Financial Instr29
Fair Value of Financial Instruments: (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
GSWC | Carrying Amount | ||
Financial liabilities: | ||
Long-term debt-GSWC | $ 325,776 | $ 325,853 |
GSWC | Fair Value | ||
Financial liabilities: | ||
Long-term debt-GSWC | 418,104 | $ 403,844 |
Mutual Funds | Level 1 | ||
Fair value of financial instruments | ||
Investments | $ 10,000 |
Income Taxes_ (Details)
Income Taxes: (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
GSWC | ||
Effective income tax rate | ||
ETRs (as a percent) | 37.70% | 41.10% |
Employee Benefit Plans_ (Detail
Employee Benefit Plans: (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pension Benefits | ||
Components of Net Periodic Benefits Cost: | ||
Service cost | $ 1,232 | $ 1,686 |
Interest cost | 1,930 | 1,939 |
Expected return on plan assets | (2,460) | (2,446) |
Amortization of transition | 0 | 0 |
Amortization of prior service cost (benefit) | 12 | 30 |
Amortization of actuarial (gain) loss | 127 | 469 |
Net periodic pension cost under accounting standards | 841 | 1,678 |
Regulatory adjustment — deferred | 359 | 11 |
Total expense recognized, before allocation to overhead pool | 1,200 | 1,689 |
Expected contributions in current fiscal year | 5,500 | |
Pension Benefits | GSWC | ||
Components of Net Periodic Benefits Cost: | ||
Regulatory adjustment — deferred | 1,800 | |
Other Postretirement Benefits | ||
Components of Net Periodic Benefits Cost: | ||
Service cost | 68 | 95 |
Interest cost | 97 | 114 |
Expected return on plan assets | (122) | (123) |
Amortization of transition | 0 | 0 |
Amortization of prior service cost (benefit) | (9) | (50) |
Amortization of actuarial (gain) loss | (150) | (53) |
Net periodic pension cost under accounting standards | (116) | (17) |
Regulatory adjustment — deferred | 0 | 0 |
Total expense recognized, before allocation to overhead pool | (116) | (17) |
SERP | ||
Components of Net Periodic Benefits Cost: | ||
Service cost | 200 | 204 |
Interest cost | 186 | 163 |
Expected return on plan assets | 0 | 0 |
Amortization of transition | 0 | 0 |
Amortization of prior service cost (benefit) | 6 | 29 |
Amortization of actuarial (gain) loss | 73 | 108 |
Net periodic pension cost under accounting standards | 465 | 504 |
Regulatory adjustment — deferred | 0 | 0 |
Total expense recognized, before allocation to overhead pool | $ 465 | $ 504 |
Contingencies_ (Details)
Contingencies: (Details) - GSWC customer in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)customer | |
Environmental Clean-Up and Remediation | |
Contingencies | |
Amount spent in clean-up and remediation activities | $ 5 |
Amount paid by the State of California Underground Storage Tank Fund for clean-up and remediation of plant facilities | 1.5 |
Accrued liability for the estimated additional cost to complete the clean-up at the site | $ 1.4 |
City of Claremont | Condemnation of Properties | |
Contingencies | |
Number of customers served through water systems | customer | 11 |
Ojai FLOW | Condemnation of Properties | |
Contingencies | |
Number of customers served through water systems | customer | 3 |
Independent Transmission and Distribution System | City of Claremont | Condemnation of Properties | |
Contingencies | |
Public Utilities, Property, Plant and Equipment, Net | $ 49.1 |
Business Segments_ (Details)
Business Segments: (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Details of reportable segment | |||
Total operating revenues | $ 93,527 | $ 100,933 | |
Operating income (loss) | 21,233 | 24,890 | |
Interest expense, net | 5,451 | 5,116 | |
Utility plant | 1,079,318 | 1,007,563 | $ 1,060,794 |
Depreciation and amortization expense | 9,791 | 10,548 | |
Income tax expense (benefit) | 5,813 | 7,898 | |
Capital additions | $ 29,454 | 17,390 | |
GSWC | |||
Details of reportable segment | |||
Number of reportable segments | segment | 2 | ||
Total operating revenues | $ 76,885 | 82,473 | |
Operating income (loss) | 19,643 | 22,473 | |
Utility plant | 1,074,398 | $ 1,056,116 | |
Depreciation and amortization expense | 9,530 | 10,241 | |
Income tax expense (benefit) | 5,440 | 7,247 | |
Depreciation on transportation equipment | $ 175 | 223 | |
AWR | |||
Details of reportable segment | |||
Number of reportable segments | segment | 3 | ||
Total operating revenues | $ 0 | 0 | |
Operating income (loss) | (2) | (3) | |
Interest expense, net | 44 | (6) | |
Utility plant | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | |
Income tax expense (benefit) | (200) | (220) | |
Capital additions | 0 | 0 | |
Reportable Legal Entities [Member] | GSWC | Water | |||
Details of reportable segment | |||
Total operating revenues | 66,312 | 71,504 | |
Operating income (loss) | 17,408 | 19,741 | |
Interest expense, net | 5,075 | 4,801 | |
Utility plant | 1,022,525 | 958,270 | |
Depreciation and amortization expense | 9,023 | 9,941 | |
Income tax expense (benefit) | 4,586 | 6,144 | |
Capital additions | 28,141 | 16,244 | |
Reportable Legal Entities [Member] | GSWC | Electric | |||
Details of reportable segment | |||
Total operating revenues | 10,573 | 10,969 | |
Operating income (loss) | 2,235 | 2,732 | |
Interest expense, net | 325 | 313 | |
Utility plant | 51,873 | 44,871 | |
Depreciation and amortization expense | 507 | 300 | |
Income tax expense (benefit) | 854 | 1,103 | |
Capital additions | 820 | 1,074 | |
Reportable Legal Entities [Member] | ASUS | Contracts | |||
Details of reportable segment | |||
Total operating revenues | 16,642 | 18,460 | |
Operating income (loss) | 1,592 | 2,420 | |
Interest expense, net | 7 | 8 | |
Utility plant | 4,920 | 4,422 | |
Depreciation and amortization expense | 261 | 307 | |
Income tax expense (benefit) | 573 | 871 | |
Capital additions | $ 493 | $ 72 |
Business Segments_ (Details 2)
Business Segments: (Details 2) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Details of reportable segment | |||
Unamortized Debt Issuance Expense | $ 4,500 | $ 4,600 | $ 4,900 |
Total utility plant | 1,079,318 | 1,060,794 | 1,007,563 |
Other assets | 289,573 | 354,939 | |
Total Assets | 1,368,891 | 1,343,959 | $ 1,362,502 |
GOLDEN STATE WATER COMPANY | |||
Details of reportable segment | |||
Total utility plant | 1,074,398 | 1,056,116 | |
Total Assets | $ 1,296,037 | $ 1,271,879 |