Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
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, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 36,733,416 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment | ||
Regulated utility plant, at cost | $ 1,740,785 | $ 1,722,421 |
Non-utility property, at cost | 18,740 | 15,941 |
Utility plant, at cost | 1,759,525 | 1,738,362 |
Less - Accumulated depreciation | (540,695) | (533,370) |
Net property, plant and equipment | 1,218,830 | 1,204,992 |
Other Property and Investments | ||
Goodwill | 1,116 | 1,116 |
Other property and investments | 23,744 | 24,070 |
Total other property and investments | 24,860 | 25,186 |
Current Assets | ||
Cash and cash equivalents | 5,984 | 214 |
Accounts receivable - customers, less allowance for doubtful accounts | 19,224 | 26,127 |
Unbilled receivable | 27,959 | 26,411 |
Receivable from the U.S. government | 20,357 | 3,725 |
Other accounts receivable, less allowance for doubtful accounts | 3,849 | 8,251 |
Income taxes receivable | 2,074 | 4,737 |
Materials and supplies, at average cost | 4,601 | 4,795 |
Regulatory assets — current | 30,844 | 34,220 |
Prepayments and other current assets | 8,783 | 5,596 |
Contract assets | 22,001 | 0 |
Costs and estimated earnings in excess of billings on contracts | 0 | 41,387 |
Total current assets | 145,676 | 155,463 |
Regulatory and Other Assets | ||
Receivable from the U.S. government | 28,026 | 0 |
Contract assets | 564 | 0 |
Costs and estimated earnings in excess of billings on contracts | 0 | 25,426 |
Other | 5,708 | 5,667 |
Total regulatory and other assets | 34,298 | 31,093 |
Total Assets | 1,423,664 | 1,416,734 |
Capitalization | ||
Outstanding: 36,733,416 shares in 2018 and 36,680,794 shares in 2017 | 250,339 | 250,124 |
Earnings reinvested in the business | 281,185 | 279,821 |
Total common shareholders’ equity | 531,524 | 529,945 |
Long-term debt | 281,053 | 321,039 |
Total capitalization | 812,577 | 850,984 |
Current Liabilities | ||
Notes payable to bank | 69,000 | 59,000 |
Long-term debt — current | 40,321 | 324 |
Accounts payable | 38,794 | 50,978 |
Income taxes payable | 238 | 225 |
Accrued other taxes | 5,939 | 7,344 |
Accrued employee expenses | 13,647 | 12,969 |
Accrued interest | 6,617 | 3,861 |
Unrealized loss on purchased power contracts | 2,625 | 2,941 |
Contract liabilities | 6,583 | 3,911 |
Other | 12,727 | 15,109 |
Total current liabilities | 196,491 | 156,662 |
Other Credits | ||
Advances for construction | 67,364 | 67,465 |
Contributions in aid of construction - net | 123,715 | 123,602 |
Deferred income taxes | 116,816 | 115,703 |
Regulatory liabilities | 35,572 | 32,178 |
Unamortized investment tax credits | 1,419 | 1,436 |
Accrued pension and other postretirement benefits | 58,626 | 57,695 |
Other | 11,084 | 11,009 |
Total other credits | 414,596 | 409,088 |
Commitments and Contingencies (Note 9) | ||
Total Capitalization and Liabilities | 1,423,664 | 1,416,734 |
GOLDEN STATE WATER COMPANY | ||
Property, Plant and Equipment | ||
Utility plant, at cost | 1,740,785 | 1,722,421 |
Less - Accumulated depreciation | (531,486) | (524,481) |
Net property, plant and equipment | 1,209,299 | 1,197,940 |
Other Property and Investments | ||
Total other property and investments | 21,642 | 21,956 |
Current Assets | ||
Cash and cash equivalents | 2,261 | 214 |
Accounts receivable - customers, less allowance for doubtful accounts | 19,224 | 26,127 |
Unbilled receivable | 17,578 | 18,852 |
Other accounts receivable, less allowance for doubtful accounts | 2,721 | 6,105 |
Income taxes receivable from Parent | 3,994 | 6,590 |
Materials and supplies, at average cost | 3,949 | 4,046 |
Regulatory assets — current | 30,844 | 34,220 |
Prepayments and other current assets | 7,370 | 5,090 |
Total current assets | 87,941 | 101,244 |
Regulatory and Other Assets | ||
Other | 5,674 | 5,683 |
Total regulatory and other assets | 5,674 | 5,683 |
Total Assets | 1,324,556 | 1,326,823 |
Capitalization | ||
Outstanding: 36,733,416 shares in 2018 and 36,680,794 shares in 2017 | 241,964 | 242,181 |
Earnings reinvested in the business | 231,654 | 232,193 |
Total common shareholders’ equity | 473,618 | 474,374 |
Long-term debt | 281,053 | 321,039 |
Total capitalization | 754,671 | 795,413 |
Current Liabilities | ||
Inter-company payable | 40,785 | 34,836 |
Long-term debt — current | 40,321 | 324 |
Accounts payable | 31,312 | 42,497 |
Income taxes payable | 0 | 0 |
Accrued other taxes | 5,675 | 7,108 |
Accrued employee expenses | 11,698 | 11,338 |
Accrued interest | 6,338 | 3,585 |
Unrealized loss on purchased power contracts | 2,625 | 2,941 |
Other | 11,998 | 14,705 |
Total current liabilities | 150,752 | 117,334 |
Other Credits | ||
Advances for construction | 67,364 | 67,465 |
Contributions in aid of construction - net | 123,715 | 123,602 |
Deferred income taxes | 121,452 | 120,780 |
Regulatory liabilities | 35,572 | 32,178 |
Unamortized investment tax credits | 1,419 | 1,436 |
Accrued pension and other postretirement benefits | 58,626 | 57,695 |
Other | 10,985 | 10,920 |
Total other credits | 419,133 | 414,076 |
Commitments and Contingencies (Note 9) | ||
Total Capitalization and Liabilities | $ 1,324,556 | $ 1,326,823 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Common Stock, Shares Authorized | 60,000,000 | 60,000,000 |
Accounts receivable - customers, allowance for doubtful accounts | $ 786 | $ 806 |
Other accounts receivable, allowance for doubtful accounts | $ 219 | $ 235 |
Common Stock, Shares, Outstanding | 36,733,416 | 36,680,794 |
GOLDEN STATE WATER COMPANY | ||
Common Stock, Shares Authorized | 1,000 | 1,000 |
Accounts receivable - customers, allowance for doubtful accounts | $ 786 | $ 806 |
Other accounts receivable, allowance for doubtful accounts | $ 59 | $ 59 |
Common Stock, Shares, Outstanding | 146 | 146 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Revenues | ||
Water | $ 64,412 | $ 66,404 |
Electric | 9,832 | 10,502 |
Contracted services | 20,484 | 21,904 |
Total operating revenues | 94,728 | 98,810 |
Operating Expenses | ||
Water purchased | 13,607 | 12,106 |
Power purchased for pumping | 1,693 | 1,597 |
Groundwater production assessment | 4,651 | 3,375 |
Power purchased for resale | 3,408 | 3,100 |
Supply cost balancing accounts | (3,869) | (1,749) |
Other operation | 7,988 | 6,160 |
Administrative and general | 20,293 | 20,448 |
Depreciation and amortization | 9,666 | 9,683 |
Maintenance | 3,829 | 3,464 |
Property and other taxes | 4,799 | 4,566 |
ASUS construction | 9,972 | 11,484 |
Total operating expenses | 76,037 | 74,234 |
Operating Income | 18,691 | 24,576 |
Other Income and Expenses | ||
Interest expense | (5,923) | (5,905) |
Interest income | 536 | 259 |
Other, net | 42 | 626 |
Total other income and expenses | (5,345) | (5,020) |
Income from operations before income tax expense | 13,346 | 19,556 |
Income tax expense | 2,564 | 6,855 |
Net Income | $ 10,782 | $ 12,701 |
Weighted Average Number of Common Shares Outstanding (in shares) | 36,712 | 36,590 |
Basic Earnings Per Common Share (in dollars per share) | $ 0.29 | $ 0.35 |
Weighted Average Number of Diluted Shares (in shares) | 36,874 | 36,782 |
Fully Diluted Earnings Per Common Share (in dollars per share) | $ 0.29 | $ 0.34 |
Dividends Declared Per Common Share (in dollars per share) | $ 0.255 | $ 0.242 |
GOLDEN STATE WATER COMPANY | ||
Operating Revenues | ||
Water | $ 64,412 | $ 66,404 |
Electric | 9,832 | 10,502 |
Total operating revenues | 74,244 | 76,906 |
Operating Expenses | ||
Water purchased | 13,607 | 12,106 |
Power purchased for pumping | 1,693 | 1,597 |
Groundwater production assessment | 4,651 | 3,375 |
Power purchased for resale | 3,408 | 3,100 |
Supply cost balancing accounts | (3,869) | (1,749) |
Other operation | 6,434 | 4,553 |
Administrative and general | 15,148 | 15,499 |
Depreciation and amortization | 9,334 | 9,438 |
Maintenance | 3,155 | 2,921 |
Property and other taxes | 4,386 | 4,190 |
Total operating expenses | 57,947 | 55,030 |
Operating Income | 16,297 | 21,876 |
Other Income and Expenses | ||
Interest expense | (5,759) | (5,757) |
Interest income | 380 | 237 |
Other, net | 87 | 666 |
Total other income and expenses | (5,292) | (4,854) |
Income from operations before income tax expense | 11,005 | 17,022 |
Income tax expense | 2,115 | 6,273 |
Net Income | $ 8,890 | $ 10,749 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows From Operating Activities: | ||
Net income | $ 10,782 | $ 12,701 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,726 | 9,744 |
Provision for doubtful accounts | 151 | 157 |
Deferred income taxes and investment tax credits | 440 | 6,225 |
Stock-based compensation expense | 998 | 1,030 |
Other — net | 303 | (349) |
Changes in assets and liabilities: | ||
Accounts receivable — customers | 6,743 | 4,097 |
Unbilled receivable | (1,548) | 4,221 |
Other accounts receivable | 4,411 | 1,318 |
Receivables from the U.S. government | (6,629) | (554) |
Materials and supplies | 194 | (523) |
Prepayments and other assets | (3,178) | (1,308) |
Contract assets | 6,219 | 0 |
Costs and estimated earnings in excess of billings on contracts | 0 | (989) |
Regulatory assets | 6,716 | (8,972) |
Accounts payable | (5,963) | 1,488 |
Income taxes receivable/payable | 2,676 | 2,853 |
Contract liabilities/Billings in excess of costs and estimated earnings on contracts | 2,672 | (1,520) |
Accrued pension and other post-retirement benefits | 1,356 | 1,216 |
Other liabilities | (341) | (2,813) |
Net cash provided | 35,728 | 28,022 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (30,364) | (23,994) |
Other investing activities | 130 | 40 |
Net cash used | (30,234) | (23,954) |
Cash Flows From Financing Activities: | ||
Proceeds from stock option exercises | 340 | 35 |
Receipt of advances for and contributions in aid of construction | 1,083 | 1,078 |
Refunds on advances for construction | (486) | (767) |
Retirement or repayments of long-term debt | (89) | (83) |
Net change in notes payable to banks | 10,000 | 6,000 |
Dividends paid | (9,362) | (8,854) |
Other financing activities | (1,210) | (1,292) |
Net cash provided (used) | 276 | (3,883) |
Net change in cash and cash equivalents | 5,770 | 185 |
Cash and cash equivalents, beginning of period | 214 | 436 |
Cash and cash equivalents, end of period | 5,984 | 621 |
Non-cash transactions: | ||
Accrued payables for investment in utility plant | 13,910 | 12,286 |
Property installed by developers and conveyed | 421 | 101 |
GOLDEN STATE WATER COMPANY | ||
Cash Flows From Operating Activities: | ||
Net income | 8,890 | 10,749 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,394 | 9,499 |
Provision for doubtful accounts | 160 | 157 |
Deferred income taxes and investment tax credits | 72 | 6,364 |
Stock-based compensation expense | 752 | 806 |
Other — net | 280 | (367) |
Changes in assets and liabilities: | ||
Accounts receivable — customers | 6,743 | 4,097 |
Unbilled receivable | 1,274 | 2,691 |
Other accounts receivable | 3,384 | 800 |
Materials and supplies | 97 | (306) |
Prepayments and other assets | (2,271) | (676) |
Regulatory assets | 6,716 | (8,972) |
Accounts payable | (4,937) | 2,531 |
Inter-company receivable/payable | (51) | (729) |
Income taxes receivable/payable | 2,596 | 2,419 |
Accrued pension and other post-retirement benefits | 1,356 | 1,216 |
Other liabilities | (1,025) | (3,271) |
Net cash provided | 33,430 | 27,008 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (27,592) | (23,707) |
Other investing activities | 130 | 40 |
Net cash used | (27,462) | (23,667) |
Cash Flows From Financing Activities: | ||
Receipt of advances for and contributions in aid of construction | 1,083 | 1,078 |
Refunds on advances for construction | (486) | (767) |
Retirement or repayments of long-term debt | (89) | (83) |
Net change in inter-company borrowings | 6,000 | (2,500) |
Dividends paid | (9,380) | 0 |
Other financing activities | (1,049) | (1,091) |
Net cash provided (used) | (3,921) | (3,363) |
Net change in cash and cash equivalents | 2,047 | (22) |
Cash and cash equivalents, beginning of period | 214 | 209 |
Cash and cash equivalents, end of period | 2,261 | 187 |
Non-cash transactions: | ||
Accrued payables for investment in utility plant | 13,880 | 12,286 |
Property installed by developers and conveyed | $ 421 | $ 101 |
Summary of Significant Accounti
Summary of Significant Accounting Policies: | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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”), Old North Utility Services, Inc. (“ONUS”), Emerald Coast Utility Services, Inc. ("ECUS"), and Fort Riley Utility Services, Inc. ("FRUS")). 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 259,000 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. . 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. 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 U.S. military bases pursuant to 50 -year firm fixed-price contracts. These contracts are subject to 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. In September 2017, ASUS was awarded a new 50 -year contract by the U.S. government to operate, maintain, and provide construction management services for the water distribution and wastewater collection and treatment facilities at Fort Riley, a United States Army installation located in Kansas. The contract over the 50 -year period is subject to annual economic price adjustments. ASUS will assume operations at Fort Riley following the completion of a six -to- twelve -month transition period currently underway. 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. Certain prior period amounts have been reclassified on the income statements to conform to the current period presentation of net periodic pension and postretirement benefit costs. 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, 2017 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 those 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, 2017 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. GSWC allocated corporate office administrative and general costs to ASUS of approximately $1.0 million during each of the three months ended March 31, 2018 and 2017 . In addition, AWR has a $150.0 million syndicated credit facility, which expires on May 23, 2018. AWR has the ability to extend the maturity of the facility to December 31, 2018. Management expects to either renew or extend this facility prior to its current expiration date. AWR borrows under this facility and provides funds to its subsidiaries, GSWC and ASUS, in support of their operations. As of March 31, 2018 , there was $69.0 million outstanding under this facility. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest expense 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, 2018 and 2017 , there were no amounts outstanding under these notes. GSWC Long-Term Debt: In March of 2019, $40 million of GSWC's 6.70% senior note will mature, which has been included in "Current Liabilities" in Registrant's balance sheets as of March 31, 2018 . GSWC intends to draw down on its short-term borrowings and/or issue additional long-term debt to fund the repayment of this note and fund its ongoing capital expenditure program. Recently Issued Accounting Pronouncements : In May 2014, the FASB issued Accounting Standard Update 2014-09, Revenue from Contracts with Customers (Topic 606) . Under this guidance, an entity recognizes 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. Registrant adopted this guidance under the modified retrospective approach beginning January 1, 2018. The adoption of this guidance did not have a material impact on its measurement or timing of revenue recognition but requires additional disclosures (see Note 2). In March 2017, the FASB issued Accounting Standards Update 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which changes the financial statement presentation for the costs of defined benefit pension plans and other retirement benefits. Prior to this guidance, the components of net benefit cost for retirement plans (such as service cost, interest cost, expected return on assets, and the amortization of prior service costs and actuarial gains and losses), were aggregated as operating costs for financial statement presentation purposes. Under the new guidance, the service cost component continues to be presented as operating costs, while all other components of net benefit cost are presented outside of operating income. The new guidance also limits any capitalization of net periodic benefits cost to the service cost component. Registrant adopted the new guidance beginning January 1, 2018, which did not have a material impact on Registrant's financial statements. Registrant used prior year's disclosure of its pension and other employee benefit plans as an estimation for applying the retrospective presentation requirements of this guidance. The components of net periodic benefits cost, other than the service cost component, have been included in the line item “Other, net” in Registrant's income statements. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments , which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The adoption of this new guidance in 2018 did not have an impact on Registrant's cash flow statements. In February 2016, the FASB issued a new lease accounting standard, Leases (ASC 842). Under the new standard, lessees will recognize a right-of-use asset and a lease liability for virtually all leases (other than leases that meet the definition of a short-term lease). For income statement purposes, leases will be classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Registrant will use the practical methods available under this standard and will not reassess: (i) whether any expired to existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) any initial direct costs for existing leases, if any. Management has not yet determined the effect of the standard on Registrant's financial statements, which will depend on Registrant’s lease portfolio as of the adoption date. |
Revenue from Contract with Cust
Revenue from Contract with Customer: | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenues from Contracts with Customers Most of Registrant's revenues are derived from contracts with customers, including tariff-based revenues from its regulated utilities. The adoption of the new revenue recognition accounting standard, "Revenue from Contracts with Customers - (Topic 606)," did not have a material impact on Registrant's measurement or timing of revenue recognition. GSWC's performance obligations for its water and electric utility operations involve providing water and electric utility services to customers. The transaction prices for water and electric revenues are based on tariff rates authorized by the CPUC, which have both quantity and flat charges. Tariff revenues represent the adopted revenue requirement authorized by the CPUC intended to provide GSWC with a reasonable opportunity to recover its costs and earn a return on its net capital investment. The annual revenue requirements are comprised of authorized operation and maintenance costs, administrative and general costs, depreciation, taxes and a return on rate base consistent with the authorized capital structure. Water and electric revenues are recognized over time as customers simultaneously receive and use the utility services provided. Water and electric revenues include amounts billed to customers on a cycle basis based on meter readings for services provided. Customer bills also include surcharges for cost-recovery activities, which represent CPUC-authorized balancing and memorandum accounts that allow for the recovery of previously incurred operating costs. Revenues from these surcharges result in no impact to earnings as they are offset by corresponding increases in operating expenses to reflect the recovery of the associated costs. Customer payment terms are approximately 20 business days from the billing date. Unbilled revenues are amounts estimated to be billed for usage since the last meter-reading date to the end of the accounting period. Historical customer usage forms the basis for estimating unbilled revenue. 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 their ordinances) 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 ratemaking area as applicable. These franchise fees, which are required to be paid regardless of GSWC’s ability to collect them from its customers, are accounted for on a gross basis. GSWC’s franchise fees billed to customers and recorded as operating revenue were approximately $853,000 and $827,000 for the three months ended March 31, 2018 and 2017 , respectively. When GSWC acts as an agent, and a tax is not required to be remitted if it is not collected from customers, the tax is accounted for on a net basis. GSWC revenues tracked under the Water Revenue Adjustment Mechanism (“WRAM”) regulatory accounts for its water segment, and the Base Revenue Requirement Adjustment Mechanism ("BRRAM") regulatory account for its electric segment, are alternative revenue programs accounted for under Accounting Standards Codification ("ASC") Topic 980, Regulated Operations . For ASUS, performance obligations consist of: (i) performing ongoing operation and maintenance of the water and/or wastewater systems for each military base served, and (ii) performing construction activities (including renewal and replacement capital work) on each military base served. The transaction price for each of ASUS's performance obligations is either delineated in, or initially derived from, each 50 -year contract and/or any subsequent contract modifications. Depending on the state in which their operations are conducted, the Military Utility Privatization Subsidiaries are also subject to certain state non-income tax assessments, which are accounted for on a gross basis and have been immaterial to date. The ongoing performance of operation and maintenance of the water and/or wastewater systems is viewed as a single performance obligation for each 50 -year contract with the U.S. government. Registrant recognizes revenue for operations and maintenance fees monthly using the "right to invoice" practical expedient under ASC Topic 606. ASUS has a right to consideration from the U.S. government in an amount that corresponds directly with the value to the U.S. government of ASUS’s performance completed to date. The contractual operations and maintenance fees are firm-fixed, and the level of effort or resources expended in the performance of the operations-and-maintenance-fees performance obligation is largely consistent over the 50 -year term. Therefore, Registrant has determined that the monthly amounts invoiced for operations and maintenance performance are a fair reflection of the value transferred to the U.S. government. Invoices to the U.S. government for operations and maintenance service, as well as construction activities, are due upon receipt. ASUS's construction activities consist of various projects to be performed. Each of these projects' transaction prices is delineated in either the 50 -year contract or through a specific contract modification for each construction project, which includes the transaction price for that project. Each construction project is viewed as a separate, single performance obligation. Therefore, it is generally not necessary to allocate a construction transaction price to more than one construction performance obligation. Revenues for construction activities are recognized over time, with progress toward completion measured based on the input method using costs incurred relative to the total estimated costs (cost-to-cost method). Due to the nature of these construction projects, Registrant has determined cost-to-cost input measurement to be the best method to measure progress towards satisfying its construction contract performance obligations, as compared to using an output measurement such as units produced. Changes in job performance, job site conditions, change orders and/or estimated profitability may result in revisions to costs and income for ASUS, and are recognized in the period in which any such revisions are determined. Pre-contract costs for ASUS, which consist of design and engineering labor costs, are deferred if recovery is probable, and are expensed as incurred if recovery is not probable. Deferred pre-contract costs have been immaterial to date. Contracted services revenues recognized during the three months ended March 31, 2018 from performance obligations satisfied in previous periods were not material. Although GSWC has a diversified base of residential, commercial, industrial and other customers, revenues derived from residential and commercial customers accounted for approximately 90% and 85% of total water and electric revenues, respectively, during the three months ended March 31, 2018 . For the three months ended March 31, 2018 , disaggregated revenues from contracts with customers by segment are as follows: (dollar in thousands) Three Months Ended March 31, 2018 Water: Tariff-based revenues $ 65,775 Surcharges (cost-recovery activities) 793 Other 442 Water revenues from contracts with customers 67,010 WRAM over-collection (alternative revenue program) (2,598 ) Total water revenues 64,412 Electric: Tariff-based revenues 10,019 Surcharges (cost-recovery activities) 47 Electric revenues from contracts with customers 10,066 BRRAM over-collection (alternative revenue program) (234 ) Total electric revenues 9,832 Contracted services: Water 13,000 Wastewater 7,484 Contracted services revenues from contracts with customers 20,484 Total revenues $ 94,728 The opening and closing balances of receivable from the U.S. government, contract assets and contract liabilities from contracts with customers, which related entirely to ASUS, are as follows: (dollar in thousands) March 31, 2018 January 1, 2018 Receivable from the U.S. government $ 48,383 $ 40,150 Contract assets $ 22,565 $ 30,388 Contract liabilities $ 6,583 $ 3,911 As a result of the adoption of ASC Topic 606, amounts previously reported under "Costs and estimated earnings in excess of billings on contracts" are now reflected as either "Receivable from U.S. government" or "Contract assets," depending on whether receipt of these amounts is conditional on something other than the passage of time. Amounts previously reported under "Billings in excess of costs and estimated earnings on contracts" are now reflected as "Contract liabilities." Contract Assets - Contract assets are those of ASUS and consist of unbilled revenues recognized from work-in-progress construction projects, where the right to payment is conditional on something other than the passage of time. The classification of this asset as current or noncurrent is based on the timing of when ASUS expects to bill these amounts. Contract Liabilities - Contract liabilities are those of ASUS and consist of billings in excess of revenue recognized. The classification of this liability as current or noncurrent is based on the timing of when ASUS expects to recognize revenue. Revenue for the three months ended March 31, 2018 , which was included in contract liabilities at the beginning of the period was not material. As of March 31, 2018 , Registrant's aggregate remaining performance obligations, which consists entirely of the contracted services segment, was $3.1 billion . Registrant expects to recognize revenue on these remaining performance obligations over the remaining term of each of the 50 -year contracts, which range from 37 to 50 years. |
Regulatory Matters_
Regulatory Matters: | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 , Registrant had approximately $59.1 million of regulatory liabilities, net of regulatory assets, not accruing carrying costs. Of this amount, (i) $82.7 million of regulatory liabilities are excess deferred income taxes arising from the lower federal income tax rate due to the Tax Cuts and Jobs Act ("Tax Act") enacted in December 2017 that are expected to be refunded to customers, (ii) $17.1 million of regulatory liabilities are from flowed-through deferred income taxes, (iii) $34.2 million of regulatory assets relates to the underfunded position in Registrant's pension and other post-retirement obligations (not including the two-way pension balancing accounts), and (iv) $2.6 million of regulatory assets relates to a memorandum account authorized by the CPUC to track unrealized gains and losses on BVES's purchase power contracts over the term of the contracts. 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 asset's value. Regulatory assets are offset against regulatory liabilities within each rate-making area. Amounts expected to be collected or refunded in the next twelve 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 $ 29,011 $ 29,556 Costs deferred for future recovery on Aerojet case 10,510 10,656 Pensions and other post-retirement obligations (Note 8) 32,178 33,019 Derivative unrealized loss (Note 5) 2,625 2,941 Low income rate assistance balancing accounts 5,640 5,972 General rate case memorandum accounts 9,264 10,522 Excess deferred income taxes (82,680 ) (83,231 ) Flow-through taxes, net (17,133 ) (17,716 ) Other regulatory assets 15,449 14,875 Various refunds to customers (9,592 ) (4,552 ) Total $ (4,728 ) $ 2,042 Regulatory matters are discussed in the consolidated financial statements and the notes thereto included in the Form 10-K for the year ended December 31, 2017 filed with the SEC. The discussion below focuses on significant matters and developments since December 31, 2017 . Alternative-Revenue Programs: GSWC records the difference between what it bills its water customers and that which is authorized by the CPUC using the WRAM and Modified Cost Balancing Account (“MCBA”) accounts approved by the CPUC. The over- or under-collection of the WRAM is aggregated with the MCBA over- or under-collection for the corresponding ratemaking area and bears interest at the current 90 -day commercial paper rate. 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 order to recognize such amounts as revenue. The recovery periods for the majority of GSWC's WRAM/MCBA balances are primarily within 12 to 24 months. GSWC has implemented surcharges to recover its WRAM/MCBA balances as of December 31, 2017. For the three months ended March 31, 2018 and 2017 , surcharges (net of surcredits) of approximately $4.2 million and $4.0 million , respectively, were billed to customers to recover previously incurred under-collections in the WRAM/MCBA accounts. During the three months ended March 31, 2018 , GSWC recorded additional under-collections in the WRAM/MCBA accounts of $3.7 million due to higher than adopted supply costs as well as lower than adopted customer water usage. As of March 31, 2018 , GSWC had an aggregated regulatory asset of $29.0 million , which is comprised of a $ 3.3 million under-collection in the WRAM accounts and a $25.7 million under-collection in the MCBA accounts. Other Regulatory Matters: Tax Cuts and Jobs Act: In March 2018, GSWC filed updated testimony revising the revenue requirements to reflect the impacts of the Tax Act in its pending water general rate case that will set new rates for the years 2019 - 2021. Also, as a result of the CPUC's Water Division having directed water utilities to establish a memorandum account, effective January 1, 2018, to track the impact on the revenue requirements resulting from the Tax Act, GSWC established a regulatory liability during the first quarter to begin capturing this impact for the year ending December 31, 2018. For the three months ended March 31, 2018 , approximately $2.3 million of reduced water-revenue requirements was tracked and recorded as a regulatory liability. The timing to refund the liability to water customers has not been determined. In April 2018, GSWC also updated its pending electric general rate case filing, which will determine electric rates for the years 2018 - 2021, to reflect the impacts of the Tax Act. As a result, for the three months ended March 31, 2018 , GSWC reduced electric revenues by approximately $335,000 and recorded a corresponding regulatory liability that will be satisfied as part of implementing overall new rates from the general rate case on a retroactive basis to January 1, 2018. Reductions in the water and electric revenue requirements resulting from the impacts of the Tax Act are offset by decreases in GSWC's income tax expense (see Note 7). Cost of Capital Proceeding: In March 2018, the CPUC adopted a revised proposed decision in the cost of capital proceeding for GSWC and three other water utilities for the years 2018 - 2020. Among other things, the final decision adopted for GSWC a return on equity of 8.90% , with a return on rate base of 7.91% . The previously authorized return on equity for GSWC’s water segment was 9.43% , with a return on rate base of 8.34% . Including the effects of the Tax Act, the lower return on equity and rate base is expected to decrease GSWC’s annual adopted revenue requirement beginning in 2018 by approximately $3.6 million. Since the decision is expected to be retroactive to January 1, 2018, for the first quarter ended March 31, 2018, GSWC recorded a regulatory liability with a corresponding decrease in water revenues of approximately $780,000 resulting from the lower return on rate base. |
Earnings per Share_Capital Stoc
Earnings per Share/Capital Stock: | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Table Text Block] | 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) 2018 2017 Common shareholders earnings, basic $ 10,729 $ 12,641 Undistributed earnings for dilutive stock-based awards 8 18 Total common shareholders earnings, diluted $ 10,737 $ 12,659 Weighted average common shares outstanding, basic 36,712 36,590 Stock-based compensation (1) 162 192 Weighted average common shares outstanding, diluted 36,874 36,782 Diluted earnings per Common Share $ 0.29 $ 0.34 (1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 47,792 and 120,138 stock options at March 31, 2018 and 2017 , respectively, were deemed to be outstanding in accordance with accounting guidance on earnings per share. All of the 193,740 and 194,031 restricted stock units at March 31, 2018 and 2017 , respectively, were included in the calculation of diluted EPS for the three months ended March 31, 2018 and 2017 . |
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 stock incentive plans for employees and the 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) 2018 2017 Net income $ 10,782 $ 12,701 Less: (a) Distributed earnings to common shareholders 9,362 8,854 Distributed earnings to participating securities 46 42 Undistributed earnings 1,374 3,805 (b) Undistributed earnings allocated to common shareholders 1,367 3,787 Undistributed earnings allocated to participating securities 7 18 Total income available to common shareholders, basic (a)+(b) $ 10,729 $ 12,641 Weighted average Common Shares outstanding, basic 36,712 36,590 Basic earnings per Common Share $ 0.29 $ 0.35 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 stock incentive plans for employees and the non-employee directors stock plans, and net income. At March 31, 2018 and 2017 , there were 47,792 and 120,138 options outstanding, respectively, under these plans. At March 31, 2018 and 2017 , there were also 193,740 and 194,031 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) 2018 2017 Common shareholders earnings, basic $ 10,729 $ 12,641 Undistributed earnings for dilutive stock-based awards 8 18 Total common shareholders earnings, diluted $ 10,737 $ 12,659 Weighted average common shares outstanding, basic 36,712 36,590 Stock-based compensation (1) 162 192 Weighted average common shares outstanding, diluted 36,874 36,782 Diluted earnings per Common Share $ 0.29 $ 0.34 (1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 47,792 and 120,138 stock options at March 31, 2018 and 2017 , respectively, were deemed to be outstanding in accordance with accounting guidance on earnings per share. All of the 193,740 and 194,031 restricted stock units at March 31, 2018 and 2017 , respectively, were included in the calculation of diluted EPS for the three months ended March 31, 2018 and 2017 . No stock options outstanding at March 31, 2018 had an exercise price greater than the average market price of AWR’s Common Shares for the three and three months ended March 31, 2018 . There were no stock options outstanding at March 31, 2018 or 2017 that were anti-dilutive. During the three months ended March 31, 2018 and 2017 , AWR issued 52,622 and 44,832 common shares, for approximately $ 340,000 and $ 35,000 , respectively, under Registrant’s Common Share Purchase and Dividend Reinvestment Plan, the 401(k) Plan, the stock incentive plans for employees, and the non-employee directors stock plans. During the three months ended March 31, 2018 and 2017 , AWR paid quarterly dividends of approximately $9.4 million , or $0.255 per share, and $8.9 million , or $0.242 per share, respectively. During the three months ended March 31, 2018 , GSWC paid dividends of $9.4 million to AWR. No dividends were paid by GSWC to AWR during the three months ended March 31, 2017 . |
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block] | Basic: For The Three Months Ended March 31, (in thousands, except per share amounts) 2018 2017 Net income $ 10,782 $ 12,701 Less: (a) Distributed earnings to common shareholders 9,362 8,854 Distributed earnings to participating securities 46 42 Undistributed earnings 1,374 3,805 (b) Undistributed earnings allocated to common shareholders 1,367 3,787 Undistributed earnings allocated to participating securities 7 18 Total income available to common shareholders, basic (a)+(b) $ 10,729 $ 12,641 Weighted average Common Shares outstanding, basic 36,712 36,590 Basic earnings per Common Share $ 0.29 $ 0.35 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2018 | |
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 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. BVES began taking power under these long-term contracts effective January 1, 2015 over three - and five -year terms. 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 monthly 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, 2018 , there was a $2.6 million unrealized loss in the memorandum account for the purchased power contracts as a result of a drop in energy prices. The notional volume of derivatives remaining under these long-term contracts as of March 31, 2018 was approximately 175,000 megawatt hours. The accounting guidance for fair value measurements applies to all financial assets and financial liabilities that are 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 contracts, Registrant applies the Black-76 model, utilizing various inputs that include quoted market prices for energy over the duration of the contracts. 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 instruments. When such inputs have a significant impact on the measurement of fair value, the instruments are categorized as Level 3. Accordingly, the valuation of the derivatives 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, 2018 and 2017 : For The Three Months Ended March 31, (dollars in thousands) 2018 2017 Fair value at beginning of the period $ (2,941 ) $ (4,901 ) Unrealized gain (loss) on purchased power contracts 316 (559 ) Fair value at end of the period $ (2,625 ) $ (5,460 ) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments: | 3 Months Ended |
Mar. 31, 2018 | |
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 these items. Investments held in a Rabbi Trust for the supplemental executive retirement plan ("SERP") are measured at fair value and totaled $15.0 million as of March 31, 2018 . 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, 2018 and December 31, 2017 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, 2018 valuation increased as compared to December 31, 2017 , decreasing the fair value of long-term debt as of March 31, 2018 . Changes in the assumptions will produce different results. March 31, 2018 December 31, 2017 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Long-term debt—GSWC (1) $ 325,176 $ 412,531 $ 325,265 $ 424,042 ___________________ (1) Excludes debt issuance costs and redemption premiums. |
Income Taxes_
Income Taxes: | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the Tax Act was signed into federal law. The provisions of this major tax reform were generally effective January 1, 2018. Among its significant provisions, the Tax Act reduced the federal corporate income tax rate from 35% to 21% and eliminated bonus depreciation for regulated utilities. AWR's effective income tax rate (“ETR”) was 19.2% and 35.1% for the three months ended March 31, 2018 and 2017 , respectively, and GSWC's ETR was 19.2% and 36.9% for the three months ended March 31, 2018 and 2017 , respectively. Both decreases were due primarily to the reduction in the federal corporate income tax rate. AWR's ETR differed from the new federal statutory tax rate primarily as a result of the differences between GSWC's ETR and the new federal statutory rate. These differences resulted primarily from: (i) state taxes, (ii) permanent differences including the excess tax benefits from share-based payments, which were reflected in the income statements and resulted in a reduction to income tax expense during the three months ended March 31, 2018 and 2017 , (iii) differences between book and taxable income that are treated as flow-through adjustments in accordance with regulatory requirements (principally from plant, rate-case, and compensation expenses), and (iv) commencement of the amortization of the excess deferred income tax liability brought about by the lower federal tax rate. There were no material updates to the excess deferred income tax liability balance during the three months ended March 31, 2018 in accordance with Staff Accounting Bulletin 118. |
Employee Benefit Plans_
Employee Benefit Plans: | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The components of net periodic benefit costs for Registrant’s pension plan, postretirement plan and SERP for the three months ended March 31, 2018 and 2017 are as follows: For The Three Months Ended March 31, Pension Benefits Other Postretirement Benefits SERP (dollars in thousands) 2018 2017 2018 2017 2018 2017 Components of Net Periodic Benefits Cost: Service cost $ 1,401 $ 1,251 $ 57 $ 59 $ 274 $ 232 Interest cost 1,921 1,967 72 85 222 223 Expected return on plan assets (2,791 ) (2,610 ) (123 ) (122 ) — — Amortization of prior service cost (benefit) — — — — — 3 Amortization of actuarial (gain) loss 345 209 (182 ) (170 ) 262 194 Net periodic pension cost under accounting standards 876 817 (176 ) (148 ) 758 652 Regulatory adjustment — deferred — 433 — — — — Total expense recognized, before surcharges and allocation to overhead pool $ 876 $ 1,250 $ (176 ) $ (148 ) $ 758 $ 652 In accordance with new accounting guidance (Note 1), effective January 1, 2018, Registrant changed the financial statement presentation for the costs of its defined benefit pension plans and other retirement benefits. The components of net periodic benefits cost, other than the service cost component, have been included in the line item “Other, net” in Registrant's income statements. Prior period amounts have been reclassified on the income statements to conform to the current period presentation. Registrant expects to contribute approximately $6.1 million to its pension plan during 2018. 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, 2018 , GSWC had a total of $2.1 million over-collection in the two-way pension balancing accounts included as part of the pension regulatory asset (Note 3). |
Contingencies and Gain on Sale
Contingencies and Gain on Sale of Assets | 3 Months Ended |
Mar. 31, 2018 | |
Loss Contingencies [Line Items] | |
Contingencies and Gain on Sale of Assets | Contingencies 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 off-site monitoring wells may be necessary to document effectiveness of remediation. As of March 31, 2018 , the total spent to clean-up and remediate GSWC’s plant facility was approximately $5.5 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, 2018 , GSWC has a regulatory asset and an accrued liability for the estimated additional cost of $1.3 million to complete the cleanup at the site. The estimate includes costs for two years of continued activities of groundwater cleanup and monitoring, source material excavation, 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 believes it is probable that the estimated additional costs will continue to be approved in rate base by the CPUC. Other Litigation : Registrant is also subject to other ordinary routine litigation incidental to its business, some of which may include claims for compensatory and punitive damages. Management believes that rate recovery, proper insurance coverage and reserves are in place to insure against, among other things, property, general liability, employment, and workers’ compensation claims incurred in the ordinary course of business. Insurance coverage may not cover certain claims involving punitive damages. However, Registrant does not believe the outcome from any pending suits or administrative proceedings will have a material effect on Registrant's consolidated results of operations, financial position or cash flows. |
Business Segments_
Business Segments: | 3 Months Ended |
Mar. 31, 2018 | |
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. All activities of GSWC, a rate-regulated utility, are geographically located within California. Activities of ASUS and its subsidiaries are conducted in California, Georgia, Florida, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia. In September 2017, ASUS was awarded a new 50 -year contract by the U.S. government for water and wastewater operations at Fort Riley located in Kansas. ASUS expects to assume operations at Fort Riley following the completion of a six -to- twelve -month transition period currently underway. Each of ASUS’s wholly owned subsidiaries is regulated, if applicable, 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- and third-party 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, 2018 GSWC AWR Consolidated (dollars in thousands) Water Electric ASUS Parent AWR Operating revenues $ 64,412 $ 9,832 $ 20,484 $ — $ 94,728 Operating income (loss) 14,058 2,239 2,397 (3 ) 18,691 Interest expense, net 5,009 370 (66 ) 74 5,387 Utility plant 1,149,038 60,261 9,531 — 1,218,830 Depreciation and amortization expense (1) 8,769 565 332 — 9,666 Income tax expense (benefit) 1,649 466 554 (105 ) 2,564 Capital additions 26,618 974 2,772 — 30,364 As Of And For The Three Months Ended March 31, 2017 GSWC AWR Consolidated (dollars in thousands) Water Electric ASUS Parent AWR Operating revenues $ 66,404 $ 10,502 $ 21,904 $ — $ 98,810 Operating income (loss) (2) 19,097 2,779 2,704 (4 ) 24,576 Interest expense, net 5,145 375 74 52 5,646 Utility plant 1,075,513 56,015 5,631 — 1,137,159 Depreciation and amortization expense (1) 8,901 537 245 — 9,683 Income tax expense (benefit) 5,485 788 861 (279 ) 6,855 Capital additions 22,984 723 287 — 23,994 (1) Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $60,000 and $61,000 for the three months ended March 31, 2018 and 2017 , respectively. (2) Adjusted to conform to current year presentation pursuant to the adoption of ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The following table reconciles total utility plant (a key figure for ratemaking) to total consolidated assets (in thousands): March 31, 2018 2017 Total utility plant $ 1,218,830 $ 1,137,159 Other assets 204,834 343,109 Total consolidated assets $ 1,423,664 $ 1,480,268 |
Summary of Significant Accoun16
Summary of Significant Accounting Policies: (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 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”), Old North Utility Services, Inc. (“ONUS”), Emerald Coast Utility Services, Inc. ("ECUS"), and Fort Riley Utility Services, Inc. ("FRUS")). 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 259,000 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. . 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. 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 U.S. military bases pursuant to 50 -year firm fixed-price contracts. These contracts are subject to 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. In September 2017, ASUS was awarded a new 50 -year contract by the U.S. government to operate, maintain, and provide construction management services for the water distribution and wastewater collection and treatment facilities at Fort Riley, a United States Army installation located in Kansas. The contract over the 50 -year period is subject to annual economic price adjustments. ASUS will assume operations at Fort Riley following the completion of a six -to- twelve -month transition period currently underway. 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. Certain prior period amounts have been reclassified on the income statements to conform to the current period presentation of net periodic pension and postretirement benefit costs. 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, 2017 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 those 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, 2017 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. GSWC allocated corporate office administrative and general costs to ASUS of approximately $1.0 million during each of the three months ended March 31, 2018 and 2017 . In addition, AWR has a $150.0 million syndicated credit facility, which expires on May 23, 2018. AWR has the ability to extend the maturity of the facility to December 31, 2018. Management expects to either renew or extend this facility prior to its current expiration date. AWR borrows under this facility and provides funds to its subsidiaries, GSWC and ASUS, in support of their operations. As of March 31, 2018 , there was $69.0 million outstanding under this facility. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest expense 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, 2018 and 2017 , there were no amounts outstanding under these notes. GSWC Long-Term Debt: In March of 2019, $40 million of GSWC's 6.70% senior note will mature, which has been included in "Current Liabilities" in Registrant's balance sheets as of March 31, 2018 . GSWC intends to draw down on its short-term borrowings and/or issue additional long-term debt to fund the repayment of this note and fund its ongoing capital expenditure program. Recently Issued Accounting Pronouncements : In May 2014, the FASB issued Accounting Standard Update 2014-09, Revenue from Contracts with Customers (Topic 606) . Under this guidance, an entity recognizes 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. Registrant adopted this guidance under the modified retrospective approach beginning January 1, 2018. The adoption of this guidance did not have a material impact on its measurement or timing of revenue recognition but requires additional disclosures (see Note 2). In March 2017, the FASB issued Accounting Standards Update 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which changes the financial statement presentation for the costs of defined benefit pension plans and other retirement benefits. Prior to this guidance, the components of net benefit cost for retirement plans (such as service cost, interest cost, expected return on assets, and the amortization of prior service costs and actuarial gains and losses), were aggregated as operating costs for financial statement presentation purposes. Under the new guidance, the service cost component continues to be presented as operating costs, while all other components of net benefit cost are presented outside of operating income. The new guidance also limits any capitalization of net periodic benefits cost to the service cost component. Registrant adopted the new guidance beginning January 1, 2018, which did not have a material impact on Registrant's financial statements. Registrant used prior year's disclosure of its pension and other employee benefit plans as an estimation for applying the retrospective presentation requirements of this guidance. The components of net periodic benefits cost, other than the service cost component, have been included in the line item “Other, net” in Registrant's income statements. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments , which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The adoption of this new guidance in 2018 did not have an impact on Registrant's cash flow statements. In February 2016, the FASB issued a new lease accounting standard, Leases (ASC 842). Under the new standard, lessees will recognize a right-of-use asset and a lease liability for virtually all leases (other than leases that meet the definition of a short-term lease). For income statement purposes, leases will be classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Registrant will use the practical methods available under this standard and will not reassess: (i) whether any expired to existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) any initial direct costs for existing leases, if any. Management has not yet determined the effect of the standard on Registrant's financial statements, which will depend on Registrant’s lease portfolio as of the adoption date. |
Basis of Accounting | 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”), Old North Utility Services, Inc. (“ONUS”), Emerald Coast Utility Services, Inc. ("ECUS"), and Fort Riley Utility Services, Inc. ("FRUS")). 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 259,000 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. . 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. 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 U.S. military bases pursuant to 50 -year firm fixed-price contracts. These contracts are subject to 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. In September 2017, ASUS was awarded a new 50 -year contract by the U.S. government to operate, maintain, and provide construction management services for the water distribution and wastewater collection and treatment facilities at Fort Riley, a United States Army installation located in Kansas. The contract over the 50 -year period is subject to annual economic price adjustments. ASUS will assume operations at Fort Riley following the completion of a six -to- twelve -month transition period currently underway. 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. Certain prior period amounts have been reclassified on the income statements to conform to the current period presentation of net periodic pension and postretirement benefit costs. 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, 2017 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 those 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, 2017 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. GSWC allocated corporate office administrative and general costs to ASUS of approximately $1.0 million during each of the three months ended March 31, 2018 and 2017 . In addition, AWR has a $150.0 million syndicated credit facility, which expires on May 23, 2018. AWR has the ability to extend the maturity of the facility to December 31, 2018. Management expects to either renew or extend this facility prior to its current expiration date. AWR borrows under this facility and provides funds to its subsidiaries, GSWC and ASUS, in support of their operations. As of March 31, 2018 , there was $69.0 million outstanding under this facility. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest expense 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, 2018 and 2017 , there were no amounts outstanding under these notes. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements : In May 2014, the FASB issued Accounting Standard Update 2014-09, Revenue from Contracts with Customers (Topic 606) . Under this guidance, an entity recognizes 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. Registrant adopted this guidance under the modified retrospective approach beginning January 1, 2018. The adoption of this guidance did not have a material impact on its measurement or timing of revenue recognition but requires additional disclosures (see Note 2). In March 2017, the FASB issued Accounting Standards Update 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which changes the financial statement presentation for the costs of defined benefit pension plans and other retirement benefits. Prior to this guidance, the components of net benefit cost for retirement plans (such as service cost, interest cost, expected return on assets, and the amortization of prior service costs and actuarial gains and losses), were aggregated as operating costs for financial statement presentation purposes. Under the new guidance, the service cost component continues to be presented as operating costs, while all other components of net benefit cost are presented outside of operating income. The new guidance also limits any capitalization of net periodic benefits cost to the service cost component. Registrant adopted the new guidance beginning January 1, 2018, which did not have a material impact on Registrant's financial statements. Registrant used prior year's disclosure of its pension and other employee benefit plans as an estimation for applying the retrospective presentation requirements of this guidance. The components of net periodic benefits cost, other than the service cost component, have been included in the line item “Other, net” in Registrant's income statements. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments , which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The adoption of this new guidance in 2018 did not have an impact on Registrant's cash flow statements. In February 2016, the FASB issued a new lease accounting standard, Leases (ASC 842). Under the new standard, lessees will recognize a right-of-use asset and a lease liability for virtually all leases (other than leases that meet the definition of a short-term lease). For income statement purposes, leases will be classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Registrant will use the practical methods available under this standard and will not reassess: (i) whether any expired to existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) any initial direct costs for existing leases, if any. Management has not yet determined the effect of the standard on Registrant's financial statements, which will depend on Registrant’s lease portfolio as of the adoption date. |
Revenue from Contract with Cu17
Revenue from Contract with Customer (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | For the three months ended March 31, 2018 , disaggregated revenues from contracts with customers by segment are as follows: (dollar in thousands) Three Months Ended March 31, 2018 Water: Tariff-based revenues $ 65,775 Surcharges (cost-recovery activities) 793 Other 442 Water revenues from contracts with customers 67,010 WRAM over-collection (alternative revenue program) (2,598 ) Total water revenues 64,412 Electric: Tariff-based revenues 10,019 Surcharges (cost-recovery activities) 47 Electric revenues from contracts with customers 10,066 BRRAM over-collection (alternative revenue program) (234 ) Total electric revenues 9,832 Contracted services: Water 13,000 Wastewater 7,484 Contracted services revenues from contracts with customers 20,484 Total revenues $ 94,728 |
Contract with Customer, Asset and Liability | The opening and closing balances of receivable from the U.S. government, contract assets and contract liabilities from contracts with customers, which related entirely to ASUS, are as follows: (dollar in thousands) March 31, 2018 January 1, 2018 Receivable from the U.S. government $ 48,383 $ 40,150 Contract assets $ 22,565 $ 30,388 Contract liabilities $ 6,583 $ 3,911 |
Regulatory Matters_ (Tables)
Regulatory Matters: (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 $ 29,011 $ 29,556 Costs deferred for future recovery on Aerojet case 10,510 10,656 Pensions and other post-retirement obligations (Note 8) 32,178 33,019 Derivative unrealized loss (Note 5) 2,625 2,941 Low income rate assistance balancing accounts 5,640 5,972 General rate case memorandum accounts 9,264 10,522 Excess deferred income taxes (82,680 ) (83,231 ) Flow-through taxes, net (17,133 ) (17,716 ) Other regulatory assets 15,449 14,875 Various refunds to customers (9,592 ) (4,552 ) Total $ (4,728 ) $ 2,042 |
Earnings per Share_Capital St19
Earnings per Share/Capital Stock: (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 | Basic: For The Three Months Ended March 31, (in thousands, except per share amounts) 2018 2017 Net income $ 10,782 $ 12,701 Less: (a) Distributed earnings to common shareholders 9,362 8,854 Distributed earnings to participating securities 46 42 Undistributed earnings 1,374 3,805 (b) Undistributed earnings allocated to common shareholders 1,367 3,787 Undistributed earnings allocated to participating securities 7 18 Total income available to common shareholders, basic (a)+(b) $ 10,729 $ 12,641 Weighted average Common Shares outstanding, basic 36,712 36,590 Basic earnings per Common Share $ 0.29 $ 0.35 |
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) 2018 2017 Common shareholders earnings, basic $ 10,729 $ 12,641 Undistributed earnings for dilutive stock-based awards 8 18 Total common shareholders earnings, diluted $ 10,737 $ 12,659 Weighted average common shares outstanding, basic 36,712 36,590 Stock-based compensation (1) 162 192 Weighted average common shares outstanding, diluted 36,874 36,782 Diluted earnings per Common Share $ 0.29 $ 0.34 (1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 47,792 and 120,138 stock options at March 31, 2018 and 2017 , respectively, were deemed to be outstanding in accordance with accounting guidance on earnings per share. All of the 193,740 and 194,031 restricted stock units at March 31, 2018 and 2017 , respectively, were included in the calculation of diluted EPS for the three months ended March 31, 2018 and 2017 . |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and 2017 : For The Three Months Ended March 31, (dollars in thousands) 2018 2017 Fair value at beginning of the period $ (2,941 ) $ (4,901 ) Unrealized gain (loss) on purchased power contracts 316 (559 ) Fair value at end of the period $ (2,625 ) $ (5,460 ) |
Fair Value of Financial Instr21
Fair Value of Financial Instruments: (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair value of financial instruments | |
Fair Value Disclosures [Text Block] | 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 these items. Investments held in a Rabbi Trust for the supplemental executive retirement plan ("SERP") are measured at fair value and totaled $15.0 million as of March 31, 2018 . 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, 2018 and December 31, 2017 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, 2018 valuation increased as compared to December 31, 2017 , decreasing the fair value of long-term debt as of March 31, 2018 . Changes in the assumptions will produce different results. March 31, 2018 December 31, 2017 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Long-term debt—GSWC (1) $ 325,176 $ 412,531 $ 325,265 $ 424,042 ___________________ (1) Excludes debt issuance costs and redemption premiums. |
GOLDEN STATE WATER COMPANY | |
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, 2018 and December 31, 2017 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, 2018 valuation increased as compared to December 31, 2017 , decreasing the fair value of long-term debt as of March 31, 2018 . Changes in the assumptions will produce different results. March 31, 2018 December 31, 2017 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Long-term debt—GSWC (1) $ 325,176 $ 412,531 $ 325,265 $ 424,042 |
Employee Benefit Plans_ (Tables
Employee Benefit Plans: (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [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 for Registrant’s pension plan, postretirement plan and SERP for the three months ended March 31, 2018 and 2017 are as follows: For The Three Months Ended March 31, Pension Benefits Other Postretirement Benefits SERP (dollars in thousands) 2018 2017 2018 2017 2018 2017 Components of Net Periodic Benefits Cost: Service cost $ 1,401 $ 1,251 $ 57 $ 59 $ 274 $ 232 Interest cost 1,921 1,967 72 85 222 223 Expected return on plan assets (2,791 ) (2,610 ) (123 ) (122 ) — — Amortization of prior service cost (benefit) — — — — — 3 Amortization of actuarial (gain) loss 345 209 (182 ) (170 ) 262 194 Net periodic pension cost under accounting standards 876 817 (176 ) (148 ) 758 652 Regulatory adjustment — deferred — 433 — — — — Total expense recognized, before surcharges and allocation to overhead pool $ 876 $ 1,250 $ (176 ) $ (148 ) $ 758 $ 652 |
Business Segments_ (Tables)
Business Segments: (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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. All activities of GSWC, a rate-regulated utility, are geographically located within California. Activities of ASUS and its subsidiaries are conducted in California, Georgia, Florida, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia. In September 2017, ASUS was awarded a new 50 -year contract by the U.S. government for water and wastewater operations at Fort Riley located in Kansas. ASUS expects to assume operations at Fort Riley following the completion of a six -to- twelve -month transition period currently underway. Each of ASUS’s wholly owned subsidiaries is regulated, if applicable, 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- and third-party 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, 2018 GSWC AWR Consolidated (dollars in thousands) Water Electric ASUS Parent AWR Operating revenues $ 64,412 $ 9,832 $ 20,484 $ — $ 94,728 Operating income (loss) 14,058 2,239 2,397 (3 ) 18,691 Interest expense, net 5,009 370 (66 ) 74 5,387 Utility plant 1,149,038 60,261 9,531 — 1,218,830 Depreciation and amortization expense (1) 8,769 565 332 — 9,666 Income tax expense (benefit) 1,649 466 554 (105 ) 2,564 Capital additions 26,618 974 2,772 — 30,364 As Of And For The Three Months Ended March 31, 2017 GSWC AWR Consolidated (dollars in thousands) Water Electric ASUS Parent AWR Operating revenues $ 66,404 $ 10,502 $ 21,904 $ — $ 98,810 Operating income (loss) (2) 19,097 2,779 2,704 (4 ) 24,576 Interest expense, net 5,145 375 74 52 5,646 Utility plant 1,075,513 56,015 5,631 — 1,137,159 Depreciation and amortization expense (1) 8,901 537 245 — 9,683 Income tax expense (benefit) 5,485 788 861 (279 ) 6,855 Capital additions 22,984 723 287 — 23,994 (1) Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $60,000 and $61,000 for the three months ended March 31, 2018 and 2017 , respectively. (2) Adjusted to conform to current year presentation pursuant to the adoption of ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The following table reconciles total utility plant (a key figure for ratemaking) to total consolidated assets (in thousands): March 31, 2018 2017 Total utility plant $ 1,218,830 $ 1,137,159 Other assets 204,834 343,109 Total consolidated assets $ 1,423,664 $ 1,480,268 |
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- and third-party 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, 2018 GSWC AWR Consolidated (dollars in thousands) Water Electric ASUS Parent AWR Operating revenues $ 64,412 $ 9,832 $ 20,484 $ — $ 94,728 Operating income (loss) 14,058 2,239 2,397 (3 ) 18,691 Interest expense, net 5,009 370 (66 ) 74 5,387 Utility plant 1,149,038 60,261 9,531 — 1,218,830 Depreciation and amortization expense (1) 8,769 565 332 — 9,666 Income tax expense (benefit) 1,649 466 554 (105 ) 2,564 Capital additions 26,618 974 2,772 — 30,364 As Of And For The Three Months Ended March 31, 2017 GSWC AWR Consolidated (dollars in thousands) Water Electric ASUS Parent AWR Operating revenues $ 66,404 $ 10,502 $ 21,904 $ — $ 98,810 Operating income (loss) (2) 19,097 2,779 2,704 (4 ) 24,576 Interest expense, net 5,145 375 74 52 5,646 Utility plant 1,075,513 56,015 5,631 — 1,137,159 Depreciation and amortization expense (1) 8,901 537 245 — 9,683 Income tax expense (benefit) 5,485 788 861 (279 ) 6,855 Capital additions 22,984 723 287 — 23,994 (1) Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $60,000 and $61,000 for the three months ended March 31, 2018 and 2017 , respectively. (2) Adjusted to conform to current year presentation pursuant to the adoption of ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. |
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 ratemaking) to total consolidated assets (in thousands): March 31, 2018 2017 Total utility plant $ 1,218,830 $ 1,137,159 Other assets 204,834 343,109 Total consolidated assets $ 1,423,664 $ 1,480,268 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies: (Details) customer in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018USD ($)customerregistrant | Mar. 31, 2017USD ($) | Sep. 30, 2017 | Dec. 31, 2017USD ($) | Oct. 31, 2015USD ($) | |
Basis of Presentation: | |||||
Number of registrants filing combined report | registrant | 2 | ||||
Related Party Transactions | |||||
Notes payable to bank | $ 69,000,000 | $ 59,000,000 | |||
Sales and Use Taxes: | |||||
Non-income tax assessments accounted on a gross basis | 4,799,000 | $ 4,566,000 | |||
AWR | Promissory Note | Notes Receivable | |||||
Sales and Use Taxes: | |||||
Notes receivable | 0 | 0 | |||
AWR | Syndicated Credit Facility | |||||
Related Party Transactions | |||||
Maximum borrowing capacity on line of credit | 150,000,000 | ||||
GOLDEN STATE WATER COMPANY | |||||
Related Party Transactions | |||||
Payments to affiliate for corporate office administrative and general costs | 1,000,000 | 1,000,000 | |||
Sales and Use Taxes: | |||||
Cost of reimbursable expense | 853,000 | 827,000 | |||
Non-income tax assessments accounted on a gross basis | 4,386,000 | $ 4,190,000 | |||
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 | Notes Payable 6.7 Percent Due 2019 [Member] | |||||
Sales and Use Taxes: | |||||
Debt and Capital Lease Obligations | $ 40,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.70% | ||||
GOLDEN STATE WATER COMPANY | Water Service Utility Operations | |||||
Nature of Operations: | |||||
Number of customers | customer | 259 | ||||
GOLDEN STATE WATER COMPANY | Electric Service Utility Operations | |||||
Nature of Operations: | |||||
Number of customers | customer | 24 | ||||
ASUS | Promissory Note | |||||
Related Party Transactions | |||||
Debt instrument, face amount | 10,000,000 | ||||
Debt instrument, maximum borrowing capacity | $ 10,000,000 | ||||
ASUS | Contracted Services | |||||
Nature of Operations: | |||||
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years | ||||
Sales and Use Taxes: | |||||
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years | ||||
Fort Riley | |||||
Nature of Operations: | |||||
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years | ||||
Sales and Use Taxes: | |||||
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years | ||||
Sales | GOLDEN STATE WATER COMPANY | Water Service Utility Operations | |||||
Nature of Operations: | |||||
Concentration Risk, Percentage | 90.00% | 90.00% | |||
Sales | GOLDEN STATE WATER COMPANY | Electric Service Utility Operations | |||||
Nature of Operations: | |||||
Concentration Risk, Percentage | 85.00% | ||||
Minimum | Fort Riley | |||||
Summary of significant accounting policies | |||||
Period of Transition to Operate and Maintain Water Systems at New Military Base | 6 months | ||||
Maximum | Fort Riley | |||||
Summary of significant accounting policies | |||||
Period of Transition to Operate and Maintain Water Systems at New Military Base | 12 months |
Revenue from Contract with Cu25
Revenue from Contract with Customer - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Contract with customer, timing of satisfaction of performance obligation and payment | P20D | |
Revenue, remaining performance obligation | $ 3,100,000 | |
GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Cost of reimbursable expense | $ 853 | $ 827 |
ASUS | Contracted Services | ||
Disaggregation of Revenue [Line Items] | ||
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years | |
ASUS | Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction, explanation | P37Y | |
ASUS | Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction, explanation | P50Y | |
Sales | GOLDEN STATE WATER COMPANY | Water Service Utility Operations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 90.00% | 90.00% |
Revenue from Contract with Cu26
Revenue from Contract with Customer - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
WRAM over-collection | $ 64,412 | $ 66,404 |
Revenues | 94,728 | |
GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
WRAM over-collection | 64,412 | $ 66,404 |
Water Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 67,010 | |
WRAM over-collection | 2,598 | |
Revenues | 64,412 | |
Electric Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 10,066 | |
BRRAM over-collection | 234 | |
Revenues | 9,832 | |
Contracted Services | ASUS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 20,484 | |
Tariff-based Revenues | Water Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 65,775 | |
Tariff-based Revenues | Electric Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 10,019 | |
Surcharges (Cost-recovery Activities) | Water Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 793 | |
Surcharges (Cost-recovery Activities) | Electric Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 47 | |
Other Products and Services | Water Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 442 | |
Water | Contracted Services | ASUS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 13,000 | |
Wastewater | Contracted Services | ASUS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | $ 7,484 | |
Sales | Water Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 90.00% | 90.00% |
Sales | Electric Service Utility Operations | GOLDEN STATE WATER COMPANY | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 85.00% |
Revenue from Contract with Cu27
Revenue from Contract with Customer - Assets and Liabilities (Details) - ASUS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Receivable from the U.S. government | $ 48,383 | $ 40,150 |
Contract assets | 22,565 | 30,388 |
Contract liabilities | $ 6,583 | $ 3,911 |
Regulatory Matters_ (Details)
Regulatory Matters: (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Regulatory matters: | |||
Regulatory asset not accruing carrying costs | $ 59,100 | ||
Pension and other post-retirement obligations | |||
Regulatory matters: | |||
Regulatory asset not accruing carrying costs | 34,200 | ||
GOLDEN STATE WATER COMPANY | |||
Regulatory matters: | |||
Regulatory assets | (4,728) | $ 2,042 | |
GOLDEN STATE WATER COMPANY | Revenue Subject to Refund | |||
Regulatory matters: | |||
Regulatory assets | (9,592) | (4,552) | |
GOLDEN STATE WATER COMPANY | Water Revenue Adjustment Mechanism, net of Modified Cost Balancing Account | |||
Regulatory matters: | |||
Amount billed to customers as surcharges | 4,200 | $ 4,000 | |
Regulatory assets | 29,011 | 29,556 | |
GOLDEN STATE WATER COMPANY | Costs deferred for future recovery on Aerojet case | |||
Regulatory matters: | |||
Regulatory assets | 10,510 | 10,656 | |
GOLDEN STATE WATER COMPANY | Pension and other post-retirement obligations | |||
Regulatory matters: | |||
Regulatory assets | 32,178 | 33,019 | |
GOLDEN STATE WATER COMPANY | Derivative unrealized loss | |||
Regulatory matters: | |||
Regulatory assets | 2,625 | 2,941 | |
GOLDEN STATE WATER COMPANY | Low income rate assistance balancing accounts | |||
Regulatory matters: | |||
Regulatory assets | 5,640 | 5,972 | |
GOLDEN STATE WATER COMPANY | General Rate Case Memorandum Accounts | |||
Regulatory matters: | |||
Regulatory assets | 9,264 | 10,522 | |
GOLDEN STATE WATER COMPANY | Deferred Income Tax Charge | |||
Regulatory matters: | |||
Regulatory assets | (82,680) | (83,231) | |
GOLDEN STATE WATER COMPANY | Flow-through taxes, net | |||
Regulatory matters: | |||
Regulatory assets | (17,133) | (17,716) | |
GOLDEN STATE WATER COMPANY | Other Regulatory Assets Net [Member] | |||
Regulatory matters: | |||
Regulatory assets | $ 15,449 | $ 14,875 |
Regulatory Matters_ Alternative
Regulatory Matters: Alternative-Revenue Programs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Water Revenue Adjustment Mechanism, net of Modified Cost Balancing Account | |||
Regulatory matters: | |||
Increase (decrease) in other regulatory assets | $ 3,700 | ||
GOLDEN STATE WATER COMPANY | |||
Regulatory matters: | |||
Under (over) collection | $ (4,728) | $ 2,042 | |
GOLDEN STATE WATER COMPANY | Water Revenue Adjustment Mechanism, net of Modified Cost Balancing Account | |||
Regulatory matters: | |||
Commercial paper, term | 90 days | ||
Amount billed to customers as surcharges | $ 4,200 | $ 4,000 | |
Under (over) collection | $ 29,011 | $ 29,556 | |
GOLDEN STATE WATER COMPANY | Water Revenue Adjustment Mechanism, net of Modified Cost Balancing Account | Minimum | |||
Regulatory matters: | |||
Recovery Period for under Collection, Balances Greater than 15 Percent of Adopted Annual Revenues | 12 months | ||
GOLDEN STATE WATER COMPANY | Water Revenue Adjustment Mechanism, net of Modified Cost Balancing Account | Maximum | |||
Regulatory matters: | |||
Regulatory asset recovery periods | 24 months | ||
Recovery Period for under Collection, Balances Greater than 15 Percent of Adopted Annual Revenues | 24 months | ||
GOLDEN STATE WATER COMPANY | WRAM | |||
Regulatory matters: | |||
Under (over) collection | $ 3,300 | ||
GOLDEN STATE WATER COMPANY | Modified Cost Balancing Account | |||
Regulatory matters: | |||
Under (over) collection | $ 25,700 |
Regulatory Matters_ CPUC Rehear
Regulatory Matters: CPUC Rehearing Matter and Procurement Audits (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue Subject to Refund | |
Regulatory matters: | |
Decrease in revenues requirement to reflect the newly adopted Cost of Capital for GSWC | $ 780,000 |
Cost of Capital, Proceeding for Water Regions | |
Regulatory matters: | |
Return on equity percentage | 9.40% |
Weighted cost of capital percent | 8.30% |
GOLDEN STATE WATER COMPANY | Revenue Subject to Refund | |
Regulatory matters: | |
Decrease in revenues requirement to reflect the newly adopted Cost of Capital for GSWC | $ 3,600 |
GOLDEN STATE WATER COMPANY | Revenue Subject to Refund | |
Regulatory matters: | |
Adjustments recorded to revalue deferred taxes as a result of the tax cut and job act of 2017 impact | $ 2,300 |
GOLDEN STATE WATER COMPANY | Cost of Capital, Proceeding for Water Regions | |
Regulatory matters: | |
Return on equity percentage | 8.90% |
Weighted cost of capital percent | 7.90% |
Electric Service Utility Operations | Revenue Subject to Refund | |
Regulatory matters: | |
Adjustments recorded to revalue deferred taxes as a result of the tax cut and job act of 2017 impact | $ 335 |
Earnings per Share_Capital St31
Earnings per Share/Capital Stock: (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Basic | ||
Net income | $ 10,782 | $ 12,701 |
Dividends Declared Per Common Share (in dollars per share) | $ 0.255 | $ 0.242 |
Weighted Average Dividends Common Stock | $ 9,362 | $ 8,854 |
Less: Distributed earnings to participating securities | 46 | 42 |
Undistributed earnings | 1,374 | 3,805 |
Undistributed earnings allocated to common shareholders | 1,367 | 3,787 |
Undistributed earnings allocated to participating securities | 7 | 18 |
Total income available to common shareholders, basic | $ 10,729 | $ 12,641 |
Weighted average Common Shares outstanding, basic (in shares) | 36,712 | 36,590 |
Basic earnings per Common Share (in dollars per share) | $ 0.29 | $ 0.35 |
Diluted | ||
Total income available to common shareholders, basic | $ 10,729 | $ 12,641 |
Undistributed earnings for dilutive stock-based awards | 8 | 18 |
Total common shareholders earnings, diluted | $ 10,737 | $ 12,659 |
Weighted average Common Shares outstanding, basic (in shares) | 36,712 | 36,590 |
Stock-based compensation (in shares) | 162 | 192 |
Weighted average common shares outstanding, diluted (in shares) | 36,874 | 36,782 |
Diluted earnings per Common Share (in dollars per share) | $ 0.29 | $ 0.34 |
Earnings per Share_Capital St32
Earnings per Share/Capital Stock: (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Additional disclosure | ||
Options outstanding (in shares) | 47,792 | 120,138 |
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 | 52,622 | 44,832 |
Value of Common Shares issued under DRP and the 2000 and 2008 Employee Plans | $ 340 | $ 40 |
Weighted Average Dividends Common Stock | 9,362 | 8,854 |
Dividends paid | $ 9,362 | $ 8,854 |
Dividends Declared Per Common Share (in dollars per share) | $ 0.255 | $ 0.242 |
Restricted Stock Units | ||
Additional disclosure | ||
Restricted stock units outstanding (in shares) | 193,740 | 194,031 |
Golden State Water Company [Member] | ||
Additional disclosure | ||
Dividends paid | $ 9,380 | $ 0 |
Derivative Instruments (Details
Derivative Instruments (Details) - GOLDEN STATE WATER COMPANY MWh in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)MWhquote | Mar. 31, 2017USD ($) | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Description of derivative activity volume | MWh | 175 | ||
Commodity Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of broker quotes received to determine fair value of derivative instrument | quote | 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value at beginning of the period | $ (2,941) | $ (4,901) | |
Unrealized gain (loss) on purchased power contracts | 316 | (559) | |
Fair value at end of the period | $ (2,625) | $ (5,460) | |
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 Instr34
Fair Value of Financial Instruments: (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
GOLDEN STATE WATER COMPANY | Reported Value Measurement | ||
Fair value of financial instruments | ||
Long-term Debt, Fair Value | $ 325,176 | $ 325,265 |
GOLDEN STATE WATER COMPANY | Estimate of Fair Value Measurement | ||
Fair value of financial instruments | ||
Long-term Debt, Fair Value | 412,531 | $ 424,042 |
Mutual Funds | Fair Value, Inputs, Level 1 | ||
Financial liabilities: | ||
Long-term debt-GSWC | $ 15,000 |
Income Taxes_ (Details)
Income Taxes: (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Effective income tax rate | |||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | $ 0 | ||
GOLDEN STATE WATER COMPANY | |||
Effective income tax rate | |||
ETRs (as a percent) | 19.20% | 36.90% | |
Parent [Member] | |||
Effective income tax rate | |||
ETRs (as a percent) | 19.20% | 35.10% |
Employee Benefit Plans_ (Detail
Employee Benefit Plans: (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension Benefits | ||
Components of Net Periodic Benefits Cost: | ||
Service cost | $ 1,401 | $ 1,251 |
Interest cost | 1,921 | 1,967 |
Expected return on plan assets | (2,791) | (2,610) |
Amortization of prior service cost (benefit) | 0 | 0 |
Amortization of actuarial (gain) loss | 345 | 209 |
Net periodic pension cost under accounting standards | 876 | 817 |
Regulatory adjustment — deferred | 0 | 433 |
Total expense recognized, before surcharges and allocation to overhead pool | 876 | 1,250 |
Expected contributions in current fiscal year | 6,100 | |
Pension Benefits | GOLDEN STATE WATER COMPANY | ||
Components of Net Periodic Benefits Cost: | ||
Regulatory adjustment — deferred | (2,100) | |
Other Postretirement Benefits | ||
Components of Net Periodic Benefits Cost: | ||
Service cost | 57 | 59 |
Interest cost | 72 | 85 |
Expected return on plan assets | (123) | (122) |
Amortization of prior service cost (benefit) | 0 | 0 |
Amortization of actuarial (gain) loss | (182) | (170) |
Net periodic pension cost under accounting standards | (176) | (148) |
Regulatory adjustment — deferred | 0 | 0 |
Total expense recognized, before surcharges and allocation to overhead pool | (176) | (148) |
SERP | ||
Components of Net Periodic Benefits Cost: | ||
Service cost | 274 | 232 |
Interest cost | 222 | 223 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost (benefit) | 0 | 3 |
Amortization of actuarial (gain) loss | 262 | 194 |
Net periodic pension cost under accounting standards | 758 | 652 |
Regulatory adjustment — deferred | 0 | 0 |
Total expense recognized, before surcharges and allocation to overhead pool | $ 758 | $ 652 |
Contingencies and Gain on Sal37
Contingencies and Gain on Sale of Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Loss Contingencies [Line Items] | |||
Amount spent in clean-up and remediation activities [Abstract] | $ 1,500 | ||
Utility plant | 1,218,830 | $ 1,204,992 | $ 1,137,159 |
Accounts receivable | 19,224 | 26,127 | |
Total Assets | 1,423,664 | 1,416,734 | $ 1,480,268 |
Advances for construction | (67,364) | (67,465) | |
Contributions in aid of construction - net | 123,715 | 123,602 | |
GOLDEN STATE WATER COMPANY | |||
Loss Contingencies [Line Items] | |||
Utility plant | 1,209,299 | 1,197,940 | |
Accounts receivable | 19,224 | 26,127 | |
Regulatory assets | (4,728) | 2,042 | |
Total Assets | 1,324,556 | 1,326,823 | |
Advances for construction | (67,364) | (67,465) | |
Contributions in aid of construction - net | 123,715 | $ 123,602 | |
Environmental Clean-Up and Remediation | GOLDEN STATE WATER COMPANY | |||
Loss Contingencies [Line Items] | |||
Environmental Remediation Expense | 5,500 | ||
Accrued liability for the estimated additional cost to complete the clean-up at the site | $ 1,300 |
Business Segments_ (Details)
Business Segments: (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | Sep. 30, 2017 | Dec. 31, 2017USD ($) | |
Details of reportable segment | ||||
Total operating revenues | $ 94,728 | $ 98,810 | ||
Operating income (loss) | 18,691 | 24,576 | ||
Interest expense, net | 5,387 | 5,646 | ||
Utility plant | 1,218,830 | 1,137,159 | $ 1,204,992 | |
Depreciation and amortization expense | 9,666 | 9,683 | ||
Income tax expense (benefit) | 2,564 | 6,855 | ||
Capital additions | $ 30,364 | 23,994 | ||
AWR | ||||
Details of reportable segment | ||||
Number of reportable segments | segment | 3 | |||
GOLDEN STATE WATER COMPANY | ||||
Details of reportable segment | ||||
Public Utilities Property Plant and Equipment Depreciation on Transportation Equipment | $ 60 | 61 | ||
Number of reportable segments | segment | 2 | |||
Total operating revenues | $ 74,244 | 76,906 | ||
Operating income (loss) | 16,297 | 21,876 | ||
Utility plant | 1,209,299 | $ 1,197,940 | ||
Depreciation and amortization expense | 9,334 | 9,438 | ||
Income tax expense (benefit) | $ 2,115 | 6,273 | ||
Fort Riley [Member] | ||||
Details of reportable segment | ||||
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years | |||
ASUS | Contracted Services | ||||
Details of reportable segment | ||||
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years | |||
Reportable Legal Entities | GOLDEN STATE WATER COMPANY | Water Service Utility Operations | ||||
Details of reportable segment | ||||
Total operating revenues | $ 64,412 | 66,404 | ||
Operating income (loss) | 14,058 | 19,097 | ||
Interest expense, net | 5,009 | 5,145 | ||
Utility plant | 1,149,038 | 1,075,513 | ||
Depreciation and amortization expense | 8,769 | 8,901 | ||
Income tax expense (benefit) | 1,649 | 5,485 | ||
Capital additions | 26,618 | 22,984 | ||
Reportable Legal Entities | GOLDEN STATE WATER COMPANY | Electric Service Utility Operations | ||||
Details of reportable segment | ||||
Total operating revenues | 9,832 | 10,502 | ||
Operating income (loss) | 2,239 | 2,779 | ||
Interest expense, net | 370 | 375 | ||
Utility plant | 60,261 | 56,015 | ||
Depreciation and amortization expense | 565 | 537 | ||
Income tax expense (benefit) | 466 | 788 | ||
Capital additions | 974 | 723 | ||
Reportable Legal Entities | ASUS | Contracted Services | ||||
Details of reportable segment | ||||
Total operating revenues | 20,484 | 21,904 | ||
Operating income (loss) | 2,397 | 2,704 | ||
Interest expense, net | (66) | (74) | ||
Utility plant | 9,531 | 5,631 | ||
Depreciation and amortization expense | 332 | 245 | ||
Income tax expense (benefit) | 554 | 861 | ||
Capital additions | 2,772 | 287 | ||
Intersegment Eliminations | AWR | ||||
Details of reportable segment | ||||
Total operating revenues | 0 | 0 | ||
Operating income (loss) | (3) | (4) | ||
Interest expense, net | 74 | (52) | ||
Utility plant | 0 | 0 | ||
Depreciation and amortization expense | 0 | 0 | ||
Income tax expense (benefit) | (105) | (279) | ||
Capital additions | $ 0 | $ 0 | ||
Minimum | Fort Riley [Member] | ||||
Details of reportable segment | ||||
Period of Transition to Operate and Maintain Water Systems at New Military Base | 6 months | |||
Maximum | Fort Riley [Member] | ||||
Details of reportable segment | ||||
Period of Transition to Operate and Maintain Water Systems at New Military Base | 12 months |
Business Segments_ (Details 2)
Business Segments: (Details 2) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Details of reportable segment | |||
Total utility plant | $ 1,218,830 | $ 1,137,159 | $ 1,204,992 |
Other assets | 204,834 | 343,109 | |
Total Assets | 1,423,664 | 1,480,268 | 1,416,734 |
GOLDEN STATE WATER COMPANY | |||
Details of reportable segment | |||
Depreciation on transportation equipment | 60 | $ 61 | |
Total utility plant | 1,209,299 | 1,197,940 | |
Total Assets | $ 1,324,556 | $ 1,326,823 |