Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2019shares | |
Document and Entity Information | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2019 |
Document Transition Report | false |
Entity File Number | 1-13883 |
Entity Registrant Name | CALIFORNIA WATER SERVICE GROUP |
Entity Central Index Key | 0001035201 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 77-0448994 |
Entity Address, Address Line One | 1720 North First Street |
Entity Address, City or Town | San Jose |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 95112 |
City Area Code | 408 |
Local Phone Number | 367-8200 |
Title of 12(b) Security | Common Stock, $0.01 par value per share |
Trading Symbol | CWT |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 48,145,000 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Utility plant: | ||
Utility plant | $ 3,411,219 | $ 3,229,446 |
Less accumulated depreciation and amortization | (1,067,965) | (996,723) |
Net utility plant | 2,343,254 | 2,232,723 |
Current assets: | ||
Cash and cash equivalents | 51,257 | 47,176 |
Receivables: | ||
Customers | 45,624 | 30,037 |
Regulatory balancing accounts | 33,437 | 42,394 |
Other | 16,977 | 17,101 |
Unbilled revenue | 42,562 | 33,427 |
Materials and supplies at weighted average cost | 7,804 | 6,586 |
Taxes, prepaid expenses, and other assets | 14,395 | 11,981 |
Total current assets | 212,056 | 188,702 |
Other assets: | ||
Regulatory assets | 382,484 | 353,569 |
Goodwill | 2,615 | 2,615 |
Other assets | 82,845 | 60,095 |
Total other assets | 467,944 | 416,279 |
TOTAL ASSETS | 3,023,254 | 2,837,704 |
Capitalization: | ||
Common stock, $0.01 par value; 68,000 shares authorized, 48,145 and 48,065 outstanding in 2019 and 2018, respectively | 481 | 481 |
Additional paid-in capital | 341,988 | 337,623 |
Retained earnings | 415,326 | 392,053 |
Total common stockholders’ equity | 757,795 | 730,157 |
Long-term debt, net | 807,478 | 710,027 |
Total capitalization | 1,565,273 | 1,440,184 |
Current liabilities: | ||
Current maturities of long-term debt, net | 5,280 | 104,911 |
Short-term borrowings | 155,100 | 65,100 |
Accounts payable | 108,593 | 95,580 |
Regulatory balancing accounts | 6,887 | 12,213 |
Accrued interest | 14,410 | 5,674 |
Accrued expenses and other liabilities | 43,674 | 37,688 |
Total current liabilities | 333,944 | 321,166 |
Unamortized investment tax credits | 1,649 | 1,649 |
Deferred income taxes | 229,237 | 213,033 |
Pension and postretirement benefits other than pensions | 203,557 | 193,538 |
Regulatory liabilities and other | 260,812 | 256,522 |
Advances for construction | 190,272 | 186,342 |
Contributions in aid of construction | 238,510 | 225,270 |
Commitments and contingencies (Note 10) | ||
TOTAL CAPITALIZATION AND LIABILITIES | $ 3,023,254 | $ 2,837,704 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 68,000 | 68,000 |
Common stock, shares outstanding (in shares) | 48,145 | 48,065 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||||||
Operating revenue | $ 232,537 | $ 221,288 | $ 537,679 | $ 530,779 | ||||
Operations: | ||||||||
Water production costs | 80,568 | 78,818 | 190,795 | 191,797 | ||||
Administrative and general | 26,779 | 26,493 | 81,310 | 77,195 | ||||
Other operations | 24,550 | 21,943 | 64,913 | 60,307 | ||||
Maintenance | 7,065 | 6,768 | 19,212 | 17,596 | ||||
Depreciation and amortization | 22,273 | 21,009 | 66,967 | 62,677 | ||||
Income taxes | 12,194 | 11,786 | 13,524 | 16,950 | ||||
Property and other taxes | 7,541 | 7,142 | 21,902 | 20,253 | ||||
Total operating (income) expenses | 180,970 | 173,959 | 458,623 | 446,775 | ||||
Net operating income | 51,567 | 47,329 | 79,056 | 84,004 | ||||
Other income and expenses: | ||||||||
Non-regulated revenue | 4,118 | 4,703 | 14,149 | 13,967 | ||||
Non-regulated expenses | (4,351) | (4,897) | (10,470) | (16,449) | ||||
Other components of net periodic benefit cost | (1,857) | (1,975) | (4,308) | (6,984) | ||||
Allowance for equity funds used during construction | 1,868 | 1,023 | 5,087 | 2,644 | ||||
Income tax benefit on other income and expenses | 330 | 305 | (985) | 1,882 | ||||
Net other income (loss) | 108 | (841) | 3,473 | (4,940) | ||||
Interest expense: | ||||||||
Interest expense | 10,279 | 10,875 | 33,532 | 30,207 | ||||
Allowance for borrowed funds used during construction | (1,028) | (560) | (2,783) | (1,359) | ||||
Net interest expense | 9,251 | 10,315 | 30,749 | 28,848 | ||||
Net income | $ 42,424 | $ 16,996 | $ (7,640) | $ 36,173 | $ 14,805 | $ (762) | $ 51,780 | $ 50,216 |
Earnings per share: | ||||||||
Basic (in dollars per share) | $ 0.88 | $ 0.75 | $ 1.08 | $ 1.04 | ||||
Diluted (in dollars per share) | $ 0.88 | $ 0.75 | $ 1.08 | $ 1.04 | ||||
Weighted average shares outstanding: | ||||||||
Basic (in shares) | 48,141 | 48,070 | 48,121 | 48,058 | ||||
Diluted (in shares) | 48,141 | 48,070 | 48,121 | 48,058 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities: | ||
Net income | $ 51,780 | $ 50,216 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 68,522 | 64,131 |
Change in value of life insurance contracts | (3,433) | 124 |
Allowance for equity funds used during construction | (5,087) | (2,644) |
Changes in operating assets and liabilities: | ||
Receivables and unbilled revenue | (29,436) | (18,471) |
Accounts payable | 16,735 | 18,133 |
Other current assets | (3,937) | (1,392) |
Other current liabilities | 11,597 | 8,762 |
Other changes in noncurrent assets and liabilities | 21,602 | 644 |
Net cash provided by operating activities | 128,343 | 119,503 |
Investing activities: | ||
Utility plant expenditures | (194,942) | (212,856) |
Life insurance proceeds | 0 | 3,491 |
Purchase of life insurance contracts | (2,216) | (4,925) |
Net cash used in investing activities | (197,158) | (214,290) |
Financing activities: | ||
Short-term borrowings | 210,000 | 141,000 |
Repayment of short-term borrowings | (120,000) | (341,000) |
Issuance of long-term debt, net of expenses of $1,569 for 2019 and $617 for 2018 | 398,431 | 299,383 |
Repayment of long-term debt | (401,630) | (12,499) |
Advances and contributions in aid of construction | 21,266 | 13,630 |
Refunds of advances for construction | (5,560) | (5,462) |
Repurchase of common stock | (2,355) | (1,496) |
Issuance of common stock | 1,278 | 0 |
Dividends paid | (28,507) | (27,029) |
Net cash provided by financing activities | 72,923 | 66,527 |
Change in cash, cash equivalents, and restricted cash | 4,108 | (28,260) |
Cash, cash equivalents, and restricted cash at beginning of period | 47,715 | 95,352 |
Cash, cash equivalents, and restricted cash at end of period | 51,823 | 67,092 |
Supplemental information: | ||
Cash paid for interest (net of amounts capitalized) | 22,060 | 19,956 |
Supplemental disclosure of non-cash activities: | ||
Accrued payables for investments in utility plant | 31,676 | 32,328 |
Utility plant contribution by developers | $ 23,955 | $ 14,807 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Expenses of issuance of long-term debt | $ 1,569 | $ 617 |
Organization and Operations and
Organization and Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations and Basis of Presentation | Organization and Operations and Basis of Presentation California Water Service Group (the Company) is a holding company that provides water utility and other related services in California, Washington, New Mexico and Hawaii through its wholly-owned subsidiaries. California Water Service Company (Cal Water), Washington Water Service Company (Washington Water), New Mexico Water Service Company (New Mexico Water), and Hawaii Water Service Company, Inc. (Hawaii Water) provide regulated utility services under the rules and regulations of their respective state’s regulatory commissions (jointly referred to herein as the Commissions). CWS Utility Services and HWS Utility Services LLC provide non-regulated water utility and utility-related services. The Company operates in one reportable segment, providing water and related utility services. Basis of Presentation The unaudited condensed consolidated interim financial information has been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (SEC) and therefore do not contain all of the information and footnotes required by GAAP and the SEC for annual financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2018 as filed with the SEC on February 28, 2019. The preparation of the Company’s unaudited condensed consolidated interim financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses for the periods presented. These include, but are not limited to, estimates and assumptions used in determining the Company’s regulatory asset and liability balances based upon probability assessments of regulatory recovery, revenues earned but not yet billed, asset retirement obligations, allowance for doubtful accounts, pension and other employee benefit plan liabilities, and income tax-related assets and liabilities. Actual results could differ from these estimates. In the opinion of management, the accompanying unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of normal recurring transactions that are necessary to provide a fair presentation of the results for the periods covered. Due to the seasonal nature of the water business, the results for interim periods are not indicative of the results for a 12-month period. Revenue and income are generally higher in the warm, dry summer months when water usage and sales are greater. Revenue and income are generally lower in the winter months when cooler temperatures and rainfall curtail water usage and sales. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Operating revenue The following tables disaggregate the Company’s operating revenue by source for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30 2019 2018 Revenue from contracts with customers $ 214,963 $ 209,541 Regulatory balancing account revenue 17,574 11,747 Total operating revenue $ 232,537 $ 221,288 Nine Months Ended September 30 2019 2018 Revenue from contracts with customers $ 499,840 $ 515,567 Regulatory balancing account revenue 37,839 15,212 Total operating revenue $ 537,679 $ 530,779 Revenue from contracts with customers The Company principally generates operating revenue from contracts with customers by providing regulated water and wastewater services at tariff-rates authorized by the Commissions in the states in which they operate and non-regulated water and wastewater services at rates authorized by contracts with government agencies. Revenue from contracts with customers reflects amounts billed for the volume of consumption at authorized per unit rates, for a service charge, and for other authorized charges. The Company satisfies its performance obligation to provide water and wastewater services over time as services are rendered. The Company applies the invoice practical expedient and recognizes revenue from contracts with customers in the amount for which the Company has a right to invoice. The Company has a right to invoice for the volume of consumption, for the service charge, and for other authorized charges. The measurement of sales to customers is generally based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, the Company estimates consumption since the date of the last meter reading and a corresponding unbilled revenue is recognized. The estimate is based upon the number of unbilled days that month and the average daily customer billing rate from the previous month (which fluctuates based upon customer usage). Contract terms are generally short-term and at will by customers and, as a result, no separate financing component is recognized for the Company's collections from customers, which generally require payment within 30 days of billing. The Company applies judgment, based principally on historical payment experience, in estimating its customers’ ability to pay. Certain customers are not billed for volumetric consumption, but are instead billed a flat rate at the beginning of each monthly service period. The amount billed is initially deferred and subsequently recognized over the monthly service period, as the performance obligation is satisfied. The deferred revenue balance or contract liability, which is included in "accrued expenses and other liabilities" on the consolidated balance sheets, is inconsequential. In the following tables, revenue from contracts with customers is disaggregated by class of customers for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30 2019 2018 Residential $ 139,137 $ 138,939 Business 38,247 38,538 Industrial 9,077 8,987 Public authorities 12,482 12,180 Other (a) 16,020 10,897 Total revenue from contracts with customers $ 214,963 $ 209,541 Nine Months Ended September 30 2019 2018 Residential $ 330,745 $ 340,107 Business 95,433 97,720 Industrial 23,866 24,507 Public authorities 24,566 25,875 Other (a) 25,230 27,358 Total revenue from contracts with customers $ 499,840 $ 515,567 (a) Other includes the accrued unbilled revenue. Regulatory balancing account revenue The Company’s ability to recover revenue requirements authorized by the California Public Utilities Commission (CPUC) in its triennial General Rate Case (GRC), is decoupled from the volume of the sales. Regulatory balancing account revenue is revenue related to rate mechanisms authorized in California by the CPUC, which allow the Company to recover the authorized revenue and are not considered contracts with customers. The Water Revenue Adjustment Mechanism (WRAM) allows the Company to recognize the adopted level of volumetric revenues. The variance between adopted volumetric revenues and actual billed volumetric revenues for metered accounts is recorded as regulatory balancing account revenue. Cost-recovery rates, such as the Modified Cost Balancing Account (MCBA), provide for recovery of the adopted levels of expenses for purchased water, purchased power, pump taxes, water conservation program costs, pension, and health care. Variances between adopted and actual costs are recorded as regulatory balancing account revenue. Each district's WRAM and MCBA regulatory assets and liabilities are allowed to be netted against one another. The Company recognizes regulatory balancing account revenues that have been authorized for rate recovery, are objectively determinable and probable of recovery, and are expected to be collected within 24 months. To the extent that regulatory balancing account revenue is estimated to be collectible beyond 24 months, recognition is deferred. Non-regulated Revenue The following tables disaggregate the Company’s non-regulated revenue by source for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30 2019 2018 Operating and maintenance revenue $ 2,929 $ 2,816 Other non-regulated revenue 626 1,328 Non-regulated revenue from contracts with customers $ 3,555 $ 4,144 Lease revenue $ 563 $ 559 Total non-regulated revenue $ 4,118 $ 4,703 Nine Months Ended September 30 2019 2018 Operating and maintenance revenue $ 9,248 $ 8,278 Other non-regulated revenue 3,189 4,053 Non-regulated revenue from contracts with customers $ 12,437 $ 12,331 Lease revenue $ 1,712 $ 1,636 Total non-regulated revenue $ 14,149 $ 13,967 Operating and maintenance services are provided for non-regulated water and wastewater systems owned by private companies and municipalities. The Company negotiates formal agreements with the customers, under which they provide operating, maintenance and customer billing services related to the customers’ water system. The formal agreements outline the fee schedule for the services provided. The agreements typically call for a fee-per-service or a flat-rate amount per month. The Company satisfies its performance obligation of providing operating and maintenance services over time as services are rendered; as a result, the Company employs the invoice practical expedient and recognizes revenue in the amount that it has the right to invoice. Contract terms are generally short-term and, as a result, no separate financing component is recognized for its collections from customers, which generally require payment within 30 days of billing. Other non-regulated revenue primarily relates to services for the design and installation of water mains and other water infrastructure for customers outside the regulated service areas and insurance program administration. Lease revenue is not considered revenue from contracts with customers and is recognized following operating lease standards. The Company is the lessor in operating lease agreements with telecommunications companies under which cellular phone antennas are placed on the Company's property. The company provides the lessee the right to ingress and egress across lessor property to access the antennas. The minimum rents are recognized on a straight-line basis over the terms of the leases, which may span multiple years. The excess rents are recognized over amounts contractually due pursuant to the underlying leases and is included in a deferred receivable account in the accompanying balance sheet. The leases generally have terms of 5 to 10 years , with lessee options to extend the lease for up to 15 years . The exercise of lease renewal options is at the lessee’s sole discretion. Most of the Company’s lease agreements contain mutual termination options that require prior written notice by either lessee or lessor. A subset of the Company’s leases contains variable lease payments that depend on changes in the consumer price index (CPI). The Company determines if an arrangement is a lease at inception. Generally, a lease agreement exists if the Company determines that the arrangement gives the lessee control over the use of an identified asset and obtains substantially all of the benefits from the identified asset. Maturities of lease payments to be received are as follows: Year Ending December 31, Operating Leases 2019 $ 3,153 2020 2,587 2021 1,880 2022 1,078 2023 584 Thereafter 871 Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown on the Condensed Consolidated Statements of Cash Flows: September 30, 2019 December 31, 2018 Cash and cash equivalents 51,257 47,176 Restricted cash (included in "taxes, prepaid expenses and other assets") 566 539 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 51,823 $ 47,715 Adoption of New Accounting Standards In February of 2016, the Financial Accounting Standards Board (FASB) issued guidance on leases, with amendments in 2018. The guidance requires lessees to recognize an asset and liability on the balance sheet for all of their lease obligations. Operating leases were previously not recognized on the balance sheet. The Company adopted the standard using the modified retrospective method for its existing leases and did not restate its comparative periods in the period of adoption. The Company completed its review of its lease portfolio including significant leases and the Company designed and implemented new controls as part of the adoption of the new standard. The implementation increased lease assets and lease liabilities on the Consolidated Balance Sheets by $13.8 million as of January 1, 2019. The Company elected certain practical expedients and carried forward historical conclusions related to (1) contracts that contain leases, (2) existing lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. The Company also applied the practical expedient that allows the Company to elect, as an accounting policy, by asset class, to include both lease and non-lease components as a single component and account for it as a lease. The Company applied the short-term lease exception which allowed the Company to not have to apply the recognition requirements of the new leasing guidance for short-term leases and to recognize lease payments in net income on a straight-line basis over the lease term. Otherwise, the new standard did not have a material impact on the remaining consolidated financial statements. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation Equity Incentive Plan The following table lists the number of annual Restricted Stock Awards (RSAs) granted and canceled during the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 RSAs granted — 1,138 36,183 47,273 RSAs canceled 2,739 3,214 14,394 16,520 During the first nine months of 2019 and 2018, the RSAs granted were valued at $52.83 and $35.40 per share, respectively, based upon the fair value of the Company’s common stock on the date of grant. The following table lists the number of Restricted Stock Unit Awards (RSUs) granted, issued, and canceled during the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 RSUs granted — — 26,473 28,594 RSUs issued — — 62,726 48,753 RSUs canceled — — 31,177 24,009 The 2019 and 2018 awards may be earned upon completion of the three -year performance period and are recognized as expense ratably over the period using a fair value of $52.83 per share and $35.40 per share, respectively, and an estimate of RSUs earned during the period. The Company has recorded compensation costs for the RSAs and RSUs in administrative and general operating expenses in the amount of $5.3 million and $2.3 million for the nine months ended September 30, 2019 and 2018, respectively. For the three months ended September 30, 2019 and 2018, the Company has recorded compensation costs for the RSAs and RSUs in the amount of $1.4 million and $0.8 million , respectively. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Equity | Equity On October 31, 2019, the Company entered into an equity distribution agreement with Morgan Stanley & Co., LLC, Robert W. Baird & Co. Incorporated, Blaylock Van, LLC and Wells Fargo Securities, LLC to sell shares of its common stock having an aggregate gross sales price of up to $300.0 million from time to time depending on market conditions through an at-the-market equity program over the next three years . The Company intends to use the net proceeds from these sales, after deducting commissions on such sales and offering expenses, for general corporate purposes, which may include working capital, construction and acquisition expenditures, investments and repurchases, and redemptions of securities. The Company’s changes in total common stockholders’ equity for the nine months ended September 30, 2019 and 2018 were as follows: Nine months ended September 30, 2019 Common Stock Additional Retained Total Shares Amount (In thousands) Balance at January 1, 2019 48,065 $ 481 $ 337,623 $ 392,053 $ 730,157 Net loss (7,640 ) (7,640 ) Issuance of common stock 109 — 3,179 — 3,179 Repurchase of common stock (40 ) — (2,074 ) — (2,074 ) Dividends paid on common stock ($0.1975 per share) (9,493 ) (9,493 ) Balance at March 31, 2019 48,134 481 338,728 374,920 714,129 Net income 16,996 16,996 Issuance of common stock 8 — 1,675 — 1,675 Repurchase of common stock (2 ) — (129 ) — (129 ) Dividends paid on common stock ($0.1975 per share) (9,507 ) (9,507 ) Balance at June 30, 2019 48,140 481 340,274 382,409 723,164 Net income 42,424 42,424 Issuance of common stock 9 — 1,866 — 1,866 Repurchase of common stock (4 ) — (152 ) — (152 ) Dividends paid on common stock ($0.1975 per share) (9,507 ) (9,507 ) Balance at September 30, 2019 48,145 481 341,988 415,326 757,795 Nine months ended September 30, 2018 Common Stock Additional Retained Total Shares Amount (In thousands) Balance at January 1, 2018 48,012 $ 480 $ 336,229 $ 362,512 $ 699,221 Net loss (762 ) (762 ) Issuance of common stock 95 1 635 — 636 Repurchase of common stock (33 ) — (1,239 ) — (1,239 ) Dividends paid on common stock ($0.1875 per share) (9,003 ) (9,003 ) Balance at March 31, 2018 48,074 481 335,625 352,747 688,853 Net income 14,805 14,805 Issuance of common stock — — 737 — 737 Repurchase of common stock (4 ) — (124 ) — (124 ) Dividends paid on common stock ($0.1875 per share) (9,014 ) (9,014 ) Balance at June 30, 2018 48,070 481 336,238 358,538 695,257 Net income 36,173 36,173 Issuance of common stock 1 — 853 — 853 Repurchase of common stock (3 ) — (131 ) — (131 ) Dividends paid on common stock ($0.1875 per share) (9,012 ) (9,012 ) Balance at September 30, 2018 48,068 481 336,960 385,699 723,140 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computations of basic and diluted earnings per share are noted in the table below. Basic earnings per share are computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding during the period. RSAs are included in the weighted average common shares outstanding because the shares have all the same voting and dividend rights as issued and unrestricted common stock. RSUs are not included in diluted shares for financial reporting until authorized by the Organization & Compensation Committee of the Board of Directors. Three Months Ended September 30 2019 2018 (In thousands, except per share data) Net income available to common stockholders $ 42,424 $ 36,173 Weighted average common shares outstanding, basic 48,141 48,070 Weighted average common shares outstanding, dilutive 48,141 48,070 Earnings per share - basic $ 0.88 $ 0.75 Earnings per share - diluted $ 0.88 $ 0.75 Nine Months Ended September 30 2019 2018 (In thousands, except per share data) Net income available to common stockholders $ 51,780 $ 50,216 Weighted average common shares outstanding, basic 48,121 48,058 Weighted average common shares outstanding, dilutive 48,121 48,058 Earnings per share - basic $ 1.08 $ 1.04 Earnings per share - diluted $ 1.08 $ 1.04 |
Pension Plan and Other Postreti
Pension Plan and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension Plan and Other Postretirement Benefits | Pension Plan and Other Postretirement Benefits The Company provides a qualified, defined-benefit, non-contributory pension plan for substantially all employees. The Company makes annual contributions to fund the amounts accrued for in the qualified pension plan. The Company also maintains an unfunded, non-qualified, supplemental executive retirement plan. The costs of the plans are charged to expense or are capitalized in utility plant as appropriate. The Company offers medical, dental, vision, and life insurance benefits for retirees and their spouses and dependents. Participants are required to pay a premium, which offsets a portion of the cost. Cash contributions made by the Company related to the pension plans were $12.5 million and $42.3 million for the nine months ended September 30, 2019 and 2018, respectively. Cash contributions made by the Company related to the other postretirement benefit plans were $5.6 million and $8.0 million for the nine months ended September 30, 2019 and 2018, respectively. The total 2019 estimated cash contribution to the pension plans is $18.8 million and to the other postretirement benefit plans is $7.9 million . The following tables list components of net periodic benefit costs for the pension plans and other postretirement benefits. The data listed under “pension plan” includes the qualified pension plan and the non-qualified supplemental executive retirement plan. The data listed under “other benefits” is for all other postretirement benefits. Three Months Ended September 30 Pension Plan Other Benefits 2019 2018 2019 2018 Service cost $ 6,910 $ 6,966 $ 2,082 $ 1,966 Interest cost 6,941 6,007 1,407 1,183 Expected return on plan assets (7,581 ) (7,052 ) (1,475 ) (1,397 ) Amortization of prior service cost 1,262 1,263 49 11 Recognized net actuarial loss 1,821 2,791 214 242 Net periodic benefit cost $ 9,353 $ 9,975 $ 2,277 $ 2,005 Nine Months Ended September 30 Pension Plan Other Benefits 2019 2018 2019 2018 Service cost $ 20,039 $ 21,770 $ 5,606 $ 7,066 Interest cost 20,225 17,996 4,081 4,152 Expected return on plan assets (22,714 ) (20,777 ) (4,346 ) (4,229 ) Amortization of prior service cost 3,786 3,789 148 32 Recognized net actuarial loss 4,445 8,386 421 1,789 Net periodic benefit cost $ 25,781 $ 31,164 $ 5,910 $ 8,810 Service cost portion of the pension plan and other postretirement benefits is recognized in "administrative and general" expenses within the Condensed Consolidated Statements of Income. Other components of net periodic benefit costs include interest costs, expected return on plan assets, amortization of prior service costs, and recognized net actuarial loss and are reported together as "other components of net periodic benefit cost" within the Condensed Consolidated Statements of Income. |
Short-term and Long-term Borrow
Short-term and Long-term Borrowings | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Short-term and Long-term Borrowings | Short-term and Long-term Borrowings On June 11, 2019, Cal Water completed the sale and issuance of $400.0 million in aggregate principal amount of First Mortgage Bonds (the bonds) in a private placement. The bonds consist of $100.0 million of 3.40% bonds, series VVV, maturing June 11, 2029; $100.0 million of 4.07% bonds, series WWW, maturing June 11, 2049; and $200.0 million of 4.17% bonds, series YYY, maturing June 11, 2059. Interest on the bonds will accrue semi-annually and be payable in arrears. The bonds will rank equally with all of Cal Water’s other First Mortgage Bonds and will be secured by liens on Cal Water’s properties, subject to certain exceptions and permitted liens. Cal Water used the net proceeds from the sale of the bonds to pay down outstanding short-term borrowings and to redeem $300.0 million of bond series UUU. The bonds were not registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. On March 29, 2019, the Company and Cal Water entered into certain syndicated credit agreements, which provide for unsecured revolving credit facilities of up to an initial aggregate amount of $550.0 million for a term of five years . The revolving credit facilities amend, expand, and replace the Company’s and its subsidiaries’ prior credit facilities originally entered into on May 10, 2015. The new credit facilities extended the terms until March 29, 2024, and increased Cal Water’s unsecured revolving line of credit. The Company and subsidiaries that it designates may borrow up to $150.0 million under the Company’s revolving credit facility. Cal Water may borrow up to $400.0 million under its revolving credit facility. All borrowings must be repaid within 24 months unless a different period is required or authorized by the CPUC. Additionally, the credit facilities may be increased by up to an incremental $150.0 million under the Cal Water facility and $50.0 million under the Company facility, subject in each case to certain conditions. The proceeds from the revolving credit facilities may be used for working capital purposes, including the short-term financing of capital projects. Borrowings under the credit facilities typically have maturities varying between one and six months and will bear interest annually at a rate equal to (i) the base rate or (ii) the Eurodollar rate, plus an applicable margin of 0.650% to 0.875% , depending on the Company and its subsidiaries’ consolidated total capitalization ratio. Both short-term unsecured credit agreements contain affirmative and negative covenants and events of default customary for credit facilities of this type including, among other things, limitations and prohibitions relating to additional indebtedness, liens, mergers, and asset sales. Also, these unsecured credit agreements contain financial covenants governing the Company and its subsidiaries’ consolidated total capitalization ratio and interest coverage ratio. The outstanding borrowings on the Company line of credit were $55.1 million as of September 30, 2019 and December 31, 2018. There were $100.0 million and $10.0 million of borrowings on the Cal Water line of credit as of September 30, 2019 and December 31, 2018, respectively. The average borrowing rate for borrowings on the Company and Cal Water lines of credit during the nine months ended September 30, 2019 was 3.38% compared to 2.88% for the same period last year. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate. The Company also records the tax effect of unusual or infrequently occurring discrete items. The provision for income taxes is shown in the tables below: Three Months Ended September 30 2019 2018 Income tax expense $ 11,864 $ 11,481 Nine Months Ended September 30 2019 2018 Income tax expense $ 14,509 $ 15,068 The income tax expense increased $0.4 million to $11.9 million for the three months ended September 30, 2019 as compared to the three months ended September 30, 2018. The increase is due to an increase in pre-tax net income of $6.6 million for the three months ended September 30, 2019 as compared to the three months ended September 30, 2018. The income tax expense decreased $0.6 million to $14.5 million for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018. The decrease is due to higher income tax benefit for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018. The Company's 2019 effective tax rate, before discrete items, is estimated to be 22% . For the year ended December 31, 2018, the Company recorded a re-measurement of its deferred tax balances (related mostly to timing differences for plant-related items). The final impact of the Tax Cuts and Jobs Act (TCJA) may differ from the recorded amounts, possibly materially, due to regulatory decisions that could differ from the Company’s determination of how the impact of the TCJA are allocated between customers and shareholders. In addition, changes in interpretations, guidance on legislative intent, and any changes in accounting standards for income taxes in response to the TCJA could also impact the recorded amounts. The Company is continuing to work with state regulators to finalize the customer net refund of $107.0 million to ensure compliance with federal normalization rules and will record any adjustments based on state regulator's decisions. The Company had unrecognized tax benefits of approximately $10.6 million and $9.7 million as of September 30, 2019 and 2018, respectively. Included in the balance of unrecognized tax benefits as of September 30, 2019 and 2018 are approximately $3.1 million and $2.9 million , respectively, of tax benefits that, if recognized, would result in an adjustment to the Company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly within the next 12 months. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Regulated Operations [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities Regulatory assets and liabilities were comprised of the following as of September 30, 2019 and December 31, 2018 : Recovery Period September 30, 2019 December 31, 2018 Regulatory Assets Pension and retiree group health Indefinitely $ 156,453 $ 156,947 Property-related temporary differences (tax benefits flowed through to customers) Indefinitely 100,943 99,376 Other accrued benefits Indefinitely 21,183 20,588 Net WRAM and MCBA long-term accounts receivable 1-2 years 30,454 17,134 Asset retirement obligations, net Indefinitely 19,619 18,197 Interim rates long-term accounts receivable 1 year 4,642 4,642 Tank coating 10 years 13,745 11,196 Recoverable property losses 10 years 5,539 1,275 Pension balancing account 1 year 20,158 16,494 Other components of net periodic benefit cost Indefinitely 4,641 3,221 Other regulatory assets Various 5,107 4,499 Total Regulatory Assets $ 382,484 $ 353,569 Regulatory Liabilities Future tax benefits due to customers $ 180,207 $ 180,205 Health care balancing account 4,315 3,516 Conservation program 5,659 6,880 Net WRAM and MCBA long-term payable 67 222 Tax accounting memorandum account 785 5,039 Cost of capital memorandum account 148 2,834 1,2,3 trichloropropane settlement proceeds 9,204 12,142 Other regulatory liabilities 272 437 Total Regulatory Liabilities $ 200,657 $ 211,275 Short-term regulatory assets and liabilities are excluded from the above table. The short-term regulatory assets were $33.4 million as of September 30, 2019 and $42.4 million as of December 31, 2018 . As of September 30, 2019 and December 31, 2018 , the short-term regulatory assets primarily consist of net WRAM and MCBA receivables. The short-term portions of regulatory liabilities were $6.9 million as of September 30, 2019 and $12.2 million as of December 31, 2018 . The short-term regulatory liabilities as of September 30, 2019 , primarily consist of 1,2,3 trichloropropane (TCP) settlement proceeds, tax accounting memorandum account refunds, and cost of capital memorandum account refunds. As of December 31, 2018 , the short-term regulatory liabilities primarily consist of TCP settlement proceeds and net WRAM and MCBA liability balances. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has significant commitments to purchase water from water wholesalers. These commitments are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2018. Leases The Company has operating and finance leases for water systems, offices, land easements, licenses, equipment, and other facilities. The leases generally have remaining lease terms of 1 year to 50 years , some of which include options to extend the lease for up to 25 years . The exercise of lease renewal options is at the Company’s sole discretion. Most of the Company’s lease agreements contain mutual termination options that require prior written notice by either lessee or lessor. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Certain leases include options to purchase the leased property. The depreciable life of the assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option that is reasonably certain of exercise. Leases with an initial term of 12 months or less are not recorded on the balance sheet as the Company applied the short-term lease exception allowed by the FASB guidance. Lease expense for these leases is recognized on a straight-line basis over the lease term. A subset of the Company’s leases contains variable lease payments that depend on changes in the CPI. The Company determines if an arrangement is a lease at contract inception. Generally, a lease agreement exists if the Company determines that the arrangement gives the Company control over the use of an identified asset and obtains substantially all of the benefits from the identified asset. The right-of-use (ROU) assets that are recorded represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s operating leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset and lease liability may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Variable lease payments that are based on changes in CPI are included in the measurement of ROU asset and lease liability on the basis of the rate at lease commencement. Subsequent changes to the payments as a result of changes to the CPI rate are recognized in the period in which the obligation of these payments is incurred. Supplemental balance sheet information related to leases was as follows: As of September 30, 2019 Operating leases Other assets $ 14,349 Accrued expenses and other liabilities $ 1,421 Regulatory liabilities and other 12,885 Total operating lease liabilities $ 14,306 Finance leases Utility plant $ 18,207 Accumulated depreciation and amortization (9,352 ) Net utility plant $ 8,855 Current maturities of long-term debt, net $ 670 Long-term debt, net 5,378 Total finance lease liabilities $ 6,048 Weighted average remaining lease term Operating leases 155 months Finance leases 80 months Weighted average discount rate Operating leases 3.7 % Finance leases 5.5 % The components of lease expense were as follows: Three Months Ended September 30 Nine Months Ended September 30 2019 Operating lease cost $ 490 $ 1,368 Finance lease cost: Amortization of right-of-use assets $ 292 $ 918 Interest on lease liabilities 85 264 Total finance lease cost $ 377 $ 1,182 Short-term lease cost $ 543 $ 716 Variable lease cost 66 198 Total lease cost $ 1,476 $ 3,464 Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,322 Operating cash flows from finance leases 264 Financing cash flows from finance leases 508 Non-cash activities: right-of-use assets obtained in exchange for lease obligations: Operating leases 1,697 Finance leases 672 Maturities of lease liabilities as of September 30, 2019 are as follows: Year Ending December 31, Operating Leases Finance Leases 2019 (a) $ 451 $ 245 2020 1,892 986 2021 1,673 987 2022 1,516 987 2023 1,396 1,506 2024 1,253 940 Thereafter 10,067 1,645 Total lease payments $ 18,248 $ 7,296 Less imputed interest $ (3,942 ) $ (1,248 ) Total $ 14,306 $ 6,048 (a) Excludes payments made for the first nine months of 2019. As previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 and under the previous lease accounting standard, minimum lease payments, as of December 31, 2018, under non-cancelable operating leases by period were expected to be as follows: 2019 $ 1,771 2020 1,709 2021 1,485 2022 1,355 2023 1,261 Thereafter 10,538 Total $ 18,119 Contingencies Groundwater Contamination The Company has undertaken litigation against third parties to recover past and anticipated costs related to groundwater contamination in our service areas. The cost of litigation is expensed as incurred and any settlement is first offset against such costs. The CPUC’s general policy requires all proceeds from groundwater contamination litigation to be used first to pay transactional expenses, then to make customers whole for water treatment costs to comply with the CPUC’s water quality standards. The CPUC allows for a risk-based consideration of contamination proceeds which exceed the costs of the remediation described above and may result in some sharing of proceeds with the shareholder, determined on a case by case basis. The CPUC has authorized various memorandum accounts that allow the Company to track significant litigation costs and to request recovery of these costs in future filings. Other Legal Matters From time to time, the Company is involved in various disputes and litigation matters that arise in the ordinary course of business. The status of each significant matter is reviewed and assessed for potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount of the range of loss can be estimated, a liability is accrued for the estimated loss in accordance with the accounting standards for contingencies. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on the best information available at the time. While the outcome of these disputes and litigation matters cannot be predicted with any certainty, management does not believe when taking into account existing reserves the ultimate resolution of these matters will materially affect the Company’s financial position, results of operations, or cash flows. As of September 30, 2019 and December 31, 2018, the Company recognized a liability of $2.6 million and $2.3 million , respectively, for known legal matters. The cost of litigation is expensed as incurred and any settlement is first offset against such costs. Any settlement in excess of the cost to litigate is accounted for on a case by case basis, dependent on the nature of the settlement. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities The accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires certain disclosures about assets and liabilities measured at fair value. A hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. The three levels in the hierarchy are as follows: Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access. Level 2 - Inputs to the valuation methodology include: • Quoted market prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Specific valuation methods include the following: Accounts receivable and accounts payable carrying amounts approximated the fair value because of the short-term maturity of the instruments. Long-term debt fair values were estimated using the published quoted market price, if available, or the discounted cash flow analysis, based on the current rates available using a risk-free rate (a U.S. Treasury securities yield curve) plus a risk premium of 1.83% . Advances for construction fair values were estimated using broker quotes from companies that frequently purchase these investments. September 30, 2019 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities, net $ 812,758 — $ 912,402 — $ 912,402 Advances for construction 190,272 — 79,818 — 79,818 Total $ 1,003,030 $ — $ 992,220 $ — $ 992,220 December 31, 2018 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities, net $ 814,938 $ — $ 849,551 $ — $ 849,551 Advances for construction 186,342 — 77,204 — 77,204 Total $ 1,001,280 — $ 926,755 $ — $ 926,755 |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements On November 17, 2010, Cal Water issued $100.0 million aggregate principal amount of 5.500% First Mortgage Bonds due 2040, all of which is fully and unconditionally guaranteed by the Company. As a result of this guarantee arrangement, the Company is required to present the following condensed consolidating financial information. The investments in affiliates are accounted for and presented using the “equity method” of accounting. The following tables present the Condensed Consolidating Balance Sheets as of September 30, 2019 and December 31, 2018, the Condensed Consolidating Statements of Income for the three and nine months ended September 30, 2019 and 2018, and the Condensed Consolidating Statements of Cash Flows for the nine months ended September 30, 2019 and 2018 of (i) California Water Service Group, the guarantor of the First Mortgage Bonds and the parent company; (ii) California Water Service Company, the issuer of the First Mortgage Bonds and a 100% owned consolidated subsidiary of California Water Service Group; and (iii) the other 100% CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2019 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 3,194,372 $ 222,726 $ (7,197 ) $ 3,411,219 Less accumulated depreciation and amortization (1,083 ) (1,004,387 ) (64,654 ) 2,159 (1,067,965 ) Net utility plant 235 2,189,985 158,072 (5,038 ) 2,343,254 Current assets: Cash and cash equivalents 2,408 39,187 9,662 — 51,257 Receivables and unbilled revenue — 133,281 5,319 — 138,600 Receivables from affiliates 28,896 540 214 (29,650 ) — Other current assets 235 19,435 2,529 — 22,199 Total current assets 31,539 192,443 17,724 (29,650 ) 212,056 Other assets: Regulatory assets — 377,962 4,522 — 382,484 Investments in affiliates 756,177 — — (756,177 ) — Long-term affiliate notes receivable 26,288 — — (26,288 ) — Other assets 460 80,480 4,692 (214 ) 85,460 Total other assets 782,925 458,442 9,214 (782,679 ) 467,944 TOTAL ASSETS $ 814,699 $ 2,840,870 $ 185,010 $ (817,367 ) $ 3,023,254 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 757,795 $ 679,037 $ 82,366 $ (761,403 ) $ 757,795 Affiliate long-term debt — — 26,288 (26,288 ) — Long-term debt, net — 807,019 459 — 807,478 Total capitalization 757,795 1,486,056 109,113 (787,691 ) 1,565,273 Current liabilities: Current maturities of long-term debt, net — 5,122 158 — 5,280 Short-term borrowings 55,100 100,000 — — 155,100 Payables to affiliates — 4,906 24,744 (29,650 ) — Accounts payable — 103,748 4,845 — 108,593 Accrued expenses and other liabilities 329 60,621 4,021 — 64,971 Total current liabilities 55,429 274,397 33,768 (29,650 ) 333,944 Unamortized investment tax credits — 1,649 — — 1,649 Deferred income taxes 1,475 224,549 3,213 — 229,237 Pension and postretirement benefits other than pensions — 203,557 — (26 ) 203,557 Regulatory liabilities and other — 253,843 6,953 — 260,812 Advances for construction — 189,781 491 — 190,272 Contributions in aid of construction — 207,038 31,472 — 238,510 TOTAL CAPITALIZATION AND LIABILITIES $ 814,699 $ 2,840,870 $ 185,010 $ (817,367 ) $ 3,023,254 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 3,021,437 $ 213,888 $ (7,197 ) $ 3,229,446 Less accumulated depreciation and amortization (1,013 ) (938,072 ) (59,735 ) 2,097 (996,723 ) Net utility plant 305 2,083,365 154,153 (5,100 ) 2,232,723 Current assets: Cash and cash equivalents 3,779 33,763 9,634 — 47,176 Receivables and unbilled revenue 126 118,632 4,201 — 122,959 Receivables from affiliates 21,318 4,074 61 (25,453 ) — Other current assets 80 16,907 1,580 — 18,567 Total current assets 25,303 173,376 15,476 (25,453 ) 188,702 Other assets: Regulatory assets — 349,414 4,155 — 353,569 Investments in affiliates 733,156 — — (733,156 ) — Long-term affiliate notes receivable 27,829 — — (27,829 ) — Other assets 133 58,959 3,821 (203 ) 62,710 Total other assets 761,118 408,373 7,976 (761,188 ) 416,279 TOTAL ASSETS $ 786,726 $ 2,665,114 $ 177,605 $ (791,741 ) $ 2,837,704 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 730,157 $ 659,340 79,093 $ (738,433 ) $ 730,157 Affiliate long-term debt — — 27,828 (27,828 ) — Long-term debt, net — 709,444 583 — 710,027 Total capitalization 730,157 1,368,784 107,504 (766,261 ) 1,440,184 Current liabilities: Current maturities of long-term debt, net — 104,664 247 — 104,911 Short-term borrowings 55,100 10,000 — — 65,100 Payables to affiliates 17 488 24,948 (25,453 ) — Accounts payable — 92,310 3,270 — 95,580 Accrued expenses and other liabilities 107 53,655 1,813 — 55,575 Total current liabilities 55,224 261,117 30,278 (25,453 ) 321,166 Unamortized investment tax credits — 1,649 — — 1,649 Deferred income taxes 1,376 210,052 1,648 (43 ) 213,033 Pension and postretirement benefits other than pensions — 193,538 — — 193,538 Regulatory and other liabilities (31 ) 250,720 5,817 16 256,522 Advances for construction — 185,843 499 — 186,342 Contributions in aid of construction — 193,411 31,859 — 225,270 TOTAL CAPITALIZATION AND LIABILITIES $ 786,726 $ 2,665,114 $ 177,605 $ (791,741 ) $ 2,837,704 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended September 30, 2019 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 219,261 $ 13,276 $ — $ 232,537 Operating expenses: Operations: Water production costs — 78,048 2,520 — 80,568 Administrative and general — 24,498 2,281 — 26,779 Other operations — 22,872 1,825 (147 ) 24,550 Maintenance — 6,823 242 — 7,065 Depreciation and amortization 23 20,770 1,501 (21 ) 22,273 Income tax (benefit) expense (132 ) 11,332 779 215 12,194 Property and other taxes — 6,620 921 — 7,541 Total operating (income) expenses (109 ) 170,963 10,069 47 180,970 Net operating income 109 48,298 3,207 (47 ) 51,567 Other income and expenses: Non-regulated revenue 599 3,865 399 (745 ) 4,118 Non-regulated expenses — (3,907 ) (444 ) — (4,351 ) Other components of net periodic benefit cost — (1,784 ) (73 ) — (1,857 ) Allowance for equity funds used during construction — 1,868 — — 1,868 Income tax (expense) benefit on other income and expenses (168 ) 268 22 208 330 Net other income (loss) 431 310 (96 ) (537 ) 108 Interest: Interest expense 450 9,820 608 (599 ) 10,279 Allowance for borrowed funds used during construction — (954 ) (74 ) — (1,028 ) Net interest expense 450 8,866 534 (599 ) 9,251 Equity earnings of subsidiaries 42,334 — — (42,334 ) — Net income $ 42,424 $ 39,742 $ 2,577 $ (42,319 ) $ 42,424 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended September 30, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 208,695 $ 12,593 $ — $ 221,288 Operating expenses: Operations: Water production costs — 76,317 2,501 — 78,818 Administrative and general — 23,878 2,615 — 26,493 Other operations — 20,271 1,816 (144 ) 21,943 Maintenance — 6,538 230 — 6,768 Depreciation and amortization 23 19,632 1,376 (22 ) 21,009 Income tax (benefit) expense (142 ) 10,435 1,271 222 11,786 Property and other taxes — 6,205 937 — 7,142 Total operating (income) expenses (119 ) 163,276 10,746 56 173,959 Net operating income 119 45,419 1,847 (56 ) 47,329 Other income and expenses: Non-regulated revenue 628 4,589 259 (773 ) 4,703 Non-regulated expenses — (4,675 ) (222 ) — (4,897 ) Other components of net periodic benefit cost — (1,834 ) (141 ) — (1,975 ) Allowance for equity funds used during construction — 1,023 — — 1,023 Income tax (expense) benefit on other income and expenses (176 ) 252 13 216 305 Net other income (loss) 452 (645 ) (91 ) (557 ) (841 ) Interest: Interest expense 486 10,443 574 (628 ) 10,875 Allowance for borrowed funds used during construction — (522 ) (38 ) — (560 ) Net interest expense 486 9,921 536 (628 ) 10,315 Equity earnings of subsidiaries 36,088 — — (36,088 ) — Net income $ 36,173 $ 34,853 $ 1,220 $ (36,073 ) $ 36,173 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the nine months ended September 30, 2019 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 502,785 $ 34,894 $ — $ 537,679 Operating expenses: Operations: Water production costs — 183,617 7,178 — 190,795 Administrative and general 23 73,908 7,379 — 81,310 Other operations — 59,851 5,499 (437 ) 64,913 Maintenance — 18,469 743 — 19,212 Depreciation and amortization 70 62,471 4,488 (62 ) 66,967 Income tax (benefit) expense (411 ) 12,019 1,265 651 13,524 Property and other taxes — 19,431 2,471 — 21,902 Total operating (income) expenses (318 ) 429,766 29,023 152 458,623 Net operating income 318 73,019 5,871 (152 ) 79,056 Other income and expenses: Non-regulated revenue 1,826 13,374 1,212 (2,263 ) 14,149 Non-regulated expenses — (9,610 ) (860 ) — (10,470 ) Other components of net periodic benefit cost — (4,177 ) (131 ) — (4,308 ) Allowance for equity funds used during construction — 5,087 — — 5,087 Income tax expense on other income and expenses (511 ) (1,028 ) (79 ) 633 (985 ) Net other income 1,315 3,646 142 (1,630 ) 3,473 Interest: Interest expense 1,376 32,141 1,841 (1,826 ) 33,532 Allowance for borrowed funds used during construction — (2,592 ) (191 ) — (2,783 ) Net interest expense 1,376 29,549 1,650 (1,826 ) 30,749 Equity earnings of subsidiaries 51,523 — — (51,523 ) — Net income $ 51,780 $ 47,116 $ 4,363 $ (51,479 ) $ 51,780 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the nine months ended September 30, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 499,173 $ 31,606 $ — $ 530,779 Operating expenses: Operations: Water production costs — 185,149 6,648 — 191,797 Administrative and general — 69,531 7,664 — 77,195 Other operations — 55,626 5,117 (436 ) 60,307 Maintenance — 16,974 622 — 17,596 Depreciation and amortization 70 58,909 3,763 (65 ) 62,677 Income tax (benefit) expense (342 ) 15,081 1,591 620 16,950 Property and other taxes — 17,894 2,359 — 20,253 Total operating (income) expenses (272 ) 419,164 27,764 119 446,775 Net operating income 272 80,009 3,842 (119 ) 84,004 Other income and expenses: Non-regulated revenue 1,716 13,572 831 (2,152 ) 13,967 Non-regulated expenses — (15,943 ) (506 ) — (16,449 ) Other components of net periodic benefit cost — (6,618 ) (366 ) — (6,984 ) Allowance for equity funds used during construction — 2,644 — — 2,644 Income tax (expense) benefit on other income and expenses (480 ) 1,776 (16 ) 602 1,882 Net other income (loss) 1,236 (4,569 ) (57 ) (1,550 ) (4,940 ) Interest: Interest expense 1,155 29,095 1,673 (1,716 ) 30,207 Allowance for borrowed funds used during construction — (1,250 ) (109 ) — (1,359 ) Net interest expense 1,155 27,845 1,564 (1,716 ) 28,848 Equity earnings of subsidiaries 49,863 — — (49,863 ) — Net income $ 50,216 $ 47,595 $ 2,221 $ (49,816 ) $ 50,216 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2019 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income $ 51,780 $ 47,116 $ 4,363 $ (51,479 ) $ 51,780 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (51,523 ) — — 51,523 — Dividends received from affiliates 28,507 — — (28,507 ) — Depreciation and amortization 70 63,975 4,539 (62 ) 68,522 Changes in value of life insurance contracts — (3,433 ) — — (3,433 ) Allowance for equity funds used during construction — (5,087 ) — — (5,087 ) Changes in operating assets and liabilities 194 (6,744 ) 1,509 — (5,041 ) Other changes in noncurrent assets and liabilities 5,239 14,560 1,785 18 21,602 Net cash provided by operating activities 34,267 110,387 12,196 (28,507 ) 128,343 Investing activities: Utility plant expenditures — (185,883 ) (9,059 ) — (194,942 ) Changes in affiliate advances (3,199 ) 3,534 (320 ) (15 ) — Issuance of affiliate short-term borrowings (4,300 ) — — 4,300 — Reduction of affiliates long-term debt 1,462 — — (1,462 ) — Purchase of life insurance contracts — (2,216 ) — — (2,216 ) Net cash used in investing activities (6,037 ) (184,565 ) (9,379 ) 2,823 (197,158 ) Financing Activities: Short-term borrowings — 210,000 — — 210,000 Repayment of short-term borrowings — (120,000 ) — — (120,000 ) Changes in affiliate advances (17 ) 4,419 (4,417 ) 15 — Proceeds from affiliate short-term borrowings — — 4,300 (4,300 ) — Repayment of affiliates long-term borrowings — — (1,462 ) 1,462 — Issuance of long term debt, net of expenses — 398,431 — — 398,431 Repayment of long-term debt — (401,417 ) (213 ) — (401,630 ) Advances and contributions in aid of construction — 21,176 90 — 21,266 Refunds of advances for construction — (5,560 ) — — (5,560 ) Repurchase of common stock (2,355 ) — — — (2,355 ) Issuance of common stock 1,278 — — — 1,278 Dividends paid to non-affiliates (28,507 ) — — — (28,507 ) Dividends paid to affiliates — (27,419 ) (1,088 ) 28,507 — Net cash (used in) provided by financing activities (29,601 ) 79,630 (2,790 ) 25,684 72,923 Change in cash, cash equivalents, and restricted cash (1,371 ) 5,452 27 — 4,108 Cash, cash equivalents, and restricted cash at beginning of period 3,779 34,238 9,698 — 47,715 Cash, cash equivalents, and restricted cash at end of period $ 2,408 $ 39,690 $ 9,725 — $ 51,823 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income $ 50,216 $ 47,595 $ 2,221 $ (49,816 ) $ 50,216 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (49,863 ) — — 49,863 — Dividends received from affiliates 27,029 — — (27,029 ) — Depreciation and amortization 70 60,298 3,828 (65 ) 64,131 Changes in value of life insurance contracts — 124 — — 124 Allowance for equity funds used during construction — (2,644 ) — — (2,644 ) Changes in operating assets and liabilities (281 ) 6,135 1,178 — 7,032 Other changes in noncurrent assets and liabilities 2,518 (3,881 ) 1,989 18 644 Net cash provided by operating activities 29,689 107,627 9,216 (27,029 ) 119,503 Investing activities: Utility plant expenditures 4 (205,218 ) (7,642 ) — (212,856 ) Changes in affiliate advances (975 ) 3,198 (269 ) (1,954 ) — Issuance of affiliate short-term borrowings (23,700 ) — — 23,700 — Reduction of affiliates long-term debt 1,224 — — (1,224 ) — Life insurance proceeds — 3,491 — — 3,491 Purchase of life insurance contracts — (4,925 ) — — (4,925 ) Net cash used in investing activities (23,447 ) (203,454 ) (7,911 ) 20,522 (214,290 ) Financing Activities: Short-term borrowings 20,000 121,000 — — 141,000 Repayment of short-term borrowings — (341,000 ) — — (341,000 ) Changes in affiliate advances — 1,129 (3,083 ) 1,954 — Proceeds from affiliate short-term borrowings — 20,000 3,700 (23,700 ) — Repayment of affiliates long-term borrowings — — (1,224 ) 1,224 — Issuance of long-term debt, net of expenses — 299,383 — — 299,383 Repayment of long-term debt — (12,299 ) (200 ) — (12,499 ) Advances and contributions in aid for construction — 13,288 342 — 13,630 Refunds of advances for construction — (5,452 ) (10 ) — (5,462 ) Repurchase of common stock (1,496 ) — — — (1,496 ) Dividends paid to non-affiliates (27,029 ) — — — (27,029 ) Dividends paid to affiliates — (25,959 ) (1,070 ) 27,029 — Net cash (used in) provided by financing activities (8,525 ) 70,090 (1,545 ) 6,507 66,527 Change in cash, cash equivalents, and restricted cash (2,283 ) (25,737 ) (240 ) — (28,260 ) Cash, cash equivalents, and restricted cash at beginning of period 4,728 81,453 9,171 — 95,352 Cash, cash equivalents, and restricted cash at end of period $ 2,445 $ 55,716 $ 8,931 — $ 67,092 |
Immaterial Restatement of Prior
Immaterial Restatement of Prior Period Financial Statements | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Immaterial Restatement of Prior Period Financial Statements | Immaterial Restatement of Prior Period Financial Statements Subsequent to the issuance of the Company's Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2018, the Company identified an immaterial computational error related to the amount of authorized revenue recorded pursuant to the Company's pension and health care cost recovery balancing accounts. In accordance with the 2015 GRC, the Company adjusts the revenue and corresponding balancing accounts quarterly to reflect actual pension and health care costs, subject to certain limitations prescribed by the 2015 GRC. The error does not impact the billings to customers or the cash collected from customers in this GRC period, which ends on December 31, 2019. As provided for in the 2015 GRC, the amounts included in the balancing account will be recovered from or refunded to customers during the next GRC period. The Company corrected the error in the accompanying Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2018. The Company believes the correction of the error is immaterial to the previously issued Condensed Consolidated Financial Statements. The corrections to the Company's Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2018 were as follows: Condensed Consolidated Statements of Income For the three months ended September 30, 2018 As Previously Reported Corrections As Corrected (In thousands, except per share data) Operating revenue $ 218,983 $ 2,305 $ 221,288 Operating expenses: Income taxes 11,262 524 11,786 Total operating expenses 173,435 524 173,959 Net operating income 45,548 1,781 47,329 Net income $ 34,392 $ 1,781 $ 36,173 Earnings per share: Basic $ 0.72 $ 0.03 $ 0.75 Diluted $ 0.72 $ 0.03 $ 0.75 For the nine months ended September 30, 2018 As Previously Reported Corrections As Corrected (In thousands, except per share data) Operating revenue $ 523,862 $ 6,917 $ 530,779 Operating expenses: Income taxes 15,380 1,570 16,950 Total operating expenses 445,205 1,570 446,775 Net operating income 78,657 5,347 84,004 Net income $ 44,869 $ 5,347 $ 50,216 Earnings per share: Basic $ 0.93 $ 0.11 $ 1.04 Diluted $ 0.93 $ 0.11 $ 1.04 The corrections to the Company's retained earnings and total stockholders’ equity as of January 1, 2018, March 31, 2018, June 30, 2018, and September 30, 2018 were as follows: January 1, 2018 As Previously Reported Corrections As Corrected (In thousands) Retained earnings $ 356,753 $ 5,759 $ 362,512 Total common stockholders' equity 693,462 5,759 699,221 March 31, 2018 As Previously Reported Corrections As Corrected (In thousands) Retained earnings $ 345,205 $ 7,542 $ 352,747 Total common stockholders' equity 681,311 7,542 688,853 June 30, 2018 As Previously Reported Corrections As Corrected (In thousands) Retained earnings $ 349,213 $ 9,325 $ 358,538 Total common stockholders' equity 685,932 9,325 695,257 September 30, 2018 As Previously Reported Corrections As Corrected (In thousands) Retained earnings $ 374,593 $ 11,106 $ 385,699 Total common stockholders' equity 712,034 11,106 723,140 The corrections to the Company's Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2018 were as follows: Condensed Consolidated Statement of Cash Flows For the nine months ended September 30, 2018 As Previously Reported Corrections As Corrected (In thousands) Operating activities: Net income $ 44,869 $ 5,347 $ 50,216 Other changes in noncurrent assets and liabilities 5,991 (5,347 ) 644 Net cash provided by operating activities $ 119,503 $ — $ 119,503 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event California GRC filing Subsequent to the issuance of the Company's Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2018, Cal Water jointly filed a formal settlement agreement in its 2018 GRC with the Public Advocates Office of the CPUC covering the majority of open matters in the case on October 8, 2019. The largest component of the GRC is Cal Water’s Infrastructure Improvement Plan for 2019-2021. The settlement details investment plans that Cal Water and the Public Advocates Office agree should be made to Cal Water’s water infrastructure to continue providing safe, reliable water service to Cal Water customers and communities. The CPUC will consider, but is not required to adopt, the settlement agreement. If the CPUC approves the settlement agreement, Cal Water would be authorized to include in rates $609.0 million to $628.0 million of new projects throughout the state in 2019 to 2021, along with approximately $200.0 million for completion of additional projects begun in 2018 and prior periods. Included in these figures are $148.0 million of advice letter authorizations, which would not be included in rates until related projects are completed. Cal Water anticipates that if the settlement were adopted, it would plan to make capital investments of approximately $809.0 million to $828.0 million in the 2019-2021 period. The settlement proposes, in part, an average water main replacement rate of 0.76% |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Revenue | Operating revenue The following tables disaggregate the Company’s operating revenue by source for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30 2019 2018 Revenue from contracts with customers $ 214,963 $ 209,541 Regulatory balancing account revenue 17,574 11,747 Total operating revenue $ 232,537 $ 221,288 Nine Months Ended September 30 2019 2018 Revenue from contracts with customers $ 499,840 $ 515,567 Regulatory balancing account revenue 37,839 15,212 Total operating revenue $ 537,679 $ 530,779 Revenue from contracts with customers The Company principally generates operating revenue from contracts with customers by providing regulated water and wastewater services at tariff-rates authorized by the Commissions in the states in which they operate and non-regulated water and wastewater services at rates authorized by contracts with government agencies. Revenue from contracts with customers reflects amounts billed for the volume of consumption at authorized per unit rates, for a service charge, and for other authorized charges. The Company satisfies its performance obligation to provide water and wastewater services over time as services are rendered. The Company applies the invoice practical expedient and recognizes revenue from contracts with customers in the amount for which the Company has a right to invoice. The Company has a right to invoice for the volume of consumption, for the service charge, and for other authorized charges. The measurement of sales to customers is generally based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, the Company estimates consumption since the date of the last meter reading and a corresponding unbilled revenue is recognized. The estimate is based upon the number of unbilled days that month and the average daily customer billing rate from the previous month (which fluctuates based upon customer usage). Contract terms are generally short-term and at will by customers and, as a result, no separate financing component is recognized for the Company's collections from customers, which generally require payment within 30 days of billing. The Company applies judgment, based principally on historical payment experience, in estimating its customers’ ability to pay. Certain customers are not billed for volumetric consumption, but are instead billed a flat rate at the beginning of each monthly service period. The amount billed is initially deferred and subsequently recognized over the monthly service period, as the performance obligation is satisfied. The deferred revenue balance or contract liability, which is included in "accrued expenses and other liabilities" on the consolidated balance sheets, is inconsequential. In the following tables, revenue from contracts with customers is disaggregated by class of customers for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30 2019 2018 Residential $ 139,137 $ 138,939 Business 38,247 38,538 Industrial 9,077 8,987 Public authorities 12,482 12,180 Other (a) 16,020 10,897 Total revenue from contracts with customers $ 214,963 $ 209,541 Nine Months Ended September 30 2019 2018 Residential $ 330,745 $ 340,107 Business 95,433 97,720 Industrial 23,866 24,507 Public authorities 24,566 25,875 Other (a) 25,230 27,358 Total revenue from contracts with customers $ 499,840 $ 515,567 (a) Other includes the accrued unbilled revenue. Regulatory balancing account revenue The Company’s ability to recover revenue requirements authorized by the California Public Utilities Commission (CPUC) in its triennial General Rate Case (GRC), is decoupled from the volume of the sales. Regulatory balancing account revenue is revenue related to rate mechanisms authorized in California by the CPUC, which allow the Company to recover the authorized revenue and are not considered contracts with customers. The Water Revenue Adjustment Mechanism (WRAM) allows the Company to recognize the adopted level of volumetric revenues. The variance between adopted volumetric revenues and actual billed volumetric revenues for metered accounts is recorded as regulatory balancing account revenue. Cost-recovery rates, such as the Modified Cost Balancing Account (MCBA), provide for recovery of the adopted levels of expenses for purchased water, purchased power, pump taxes, water conservation program costs, pension, and health care. Variances between adopted and actual costs are recorded as regulatory balancing account revenue. Each district's WRAM and MCBA regulatory assets and liabilities are allowed to be netted against one another. The Company recognizes regulatory balancing account revenues that have been authorized for rate recovery, are objectively determinable and probable of recovery, and are expected to be collected within 24 months. To the extent that regulatory balancing account revenue is estimated to be collectible beyond 24 months, recognition is deferred. Non-regulated Revenue The following tables disaggregate the Company’s non-regulated revenue by source for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30 2019 2018 Operating and maintenance revenue $ 2,929 $ 2,816 Other non-regulated revenue 626 1,328 Non-regulated revenue from contracts with customers $ 3,555 $ 4,144 Lease revenue $ 563 $ 559 Total non-regulated revenue $ 4,118 $ 4,703 Nine Months Ended September 30 2019 2018 Operating and maintenance revenue $ 9,248 $ 8,278 Other non-regulated revenue 3,189 4,053 Non-regulated revenue from contracts with customers $ 12,437 $ 12,331 Lease revenue $ 1,712 $ 1,636 Total non-regulated revenue $ 14,149 $ 13,967 Operating and maintenance services are provided for non-regulated water and wastewater systems owned by private companies and municipalities. The Company negotiates formal agreements with the customers, under which they provide operating, maintenance and customer billing services related to the customers’ water system. The formal agreements outline the fee schedule for the services provided. The agreements typically call for a fee-per-service or a flat-rate amount per month. The Company satisfies its performance obligation of providing operating and maintenance services over time as services are rendered; as a result, the Company employs the invoice practical expedient and recognizes revenue in the amount that it has the right to invoice. Contract terms are generally short-term and, as a result, no separate financing component is recognized for its collections from customers, which generally require payment within 30 days of billing. Other non-regulated revenue primarily relates to services for the design and installation of water mains and other water infrastructure for customers outside the regulated service areas and insurance program administration. Lease revenue is not considered revenue from contracts with customers and is recognized following operating lease standards. The Company is the lessor in operating lease agreements with telecommunications companies under which cellular phone antennas are placed on the Company's property. The company provides the lessee the right to ingress and egress across lessor property to access the antennas. The minimum rents are recognized on a straight-line basis over the terms of the leases, which may span multiple years. The excess rents are recognized over amounts contractually due pursuant to the underlying leases and is included in a deferred receivable account in the accompanying balance sheet. The leases generally have terms of 5 to 10 years , with lessee options to extend the lease for up to 15 years . The exercise of lease renewal options is at the lessee’s sole discretion. Most of the Company’s lease agreements contain mutual termination options that require prior written notice by either lessee or lessor. A subset of the Company’s leases contains variable lease payments that depend on changes in the consumer price index (CPI). The Company determines if an arrangement is a lease at inception. Generally, a lease agreement exists if the Company determines that the arrangement gives the lessee control over the use of an identified asset and obtains substantially all of the benefits from the identified asset. Maturities of lease payments to be received are as follows: Year Ending December 31, Operating Leases 2019 $ 3,153 2020 2,587 2021 1,880 2022 1,078 2023 584 Thereafter 871 |
Adoption of New Accounting Standards and New Accounting Standards Issued But Not Yet Adopted | Adoption of New Accounting Standards In February of 2016, the Financial Accounting Standards Board (FASB) issued guidance on leases, with amendments in 2018. The guidance requires lessees to recognize an asset and liability on the balance sheet for all of their lease obligations. Operating leases were previously not recognized on the balance sheet. The Company adopted the standard using the modified retrospective method for its existing leases and did not restate its comparative periods in the period of adoption. The Company completed its review of its lease portfolio including significant leases and the Company designed and implemented new controls as part of the adoption of the new standard. The implementation increased lease assets and lease liabilities on the Consolidated Balance Sheets by $13.8 million as of January 1, 2019. The Company elected certain practical expedients and carried forward historical conclusions related to (1) contracts that contain leases, (2) existing lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. The Company also applied the practical expedient that allows the Company to elect, as an accounting policy, by asset class, to include both lease and non-lease components as a single component and account for it as a lease. The Company applied the short-term lease exception which allowed the Company to not have to apply the recognition requirements of the new leasing guidance for short-term leases and to recognize lease payments in net income on a straight-line basis over the lease term. Otherwise, the new standard did not have a material impact on the remaining consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate the Company’s non-regulated revenue by source for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30 2019 2018 Operating and maintenance revenue $ 2,929 $ 2,816 Other non-regulated revenue 626 1,328 Non-regulated revenue from contracts with customers $ 3,555 $ 4,144 Lease revenue $ 563 $ 559 Total non-regulated revenue $ 4,118 $ 4,703 Nine Months Ended September 30 2019 2018 Operating and maintenance revenue $ 9,248 $ 8,278 Other non-regulated revenue 3,189 4,053 Non-regulated revenue from contracts with customers $ 12,437 $ 12,331 Lease revenue $ 1,712 $ 1,636 Total non-regulated revenue $ 14,149 $ 13,967 The following tables disaggregate the Company’s operating revenue by source for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30 2019 2018 Revenue from contracts with customers $ 214,963 $ 209,541 Regulatory balancing account revenue 17,574 11,747 Total operating revenue $ 232,537 $ 221,288 Nine Months Ended September 30 2019 2018 Revenue from contracts with customers $ 499,840 $ 515,567 Regulatory balancing account revenue 37,839 15,212 Total operating revenue $ 537,679 $ 530,779 In the following tables, revenue from contracts with customers is disaggregated by class of customers for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30 2019 2018 Residential $ 139,137 $ 138,939 Business 38,247 38,538 Industrial 9,077 8,987 Public authorities 12,482 12,180 Other (a) 16,020 10,897 Total revenue from contracts with customers $ 214,963 $ 209,541 Nine Months Ended September 30 2019 2018 Residential $ 330,745 $ 340,107 Business 95,433 97,720 Industrial 23,866 24,507 Public authorities 24,566 25,875 Other (a) 25,230 27,358 Total revenue from contracts with customers $ 499,840 $ 515,567 (a) Other includes the accrued unbilled revenue. |
Maturities of lease liabilities | Maturities of lease payments to be received are as follows: Year Ending December 31, Operating Leases 2019 $ 3,153 2020 2,587 2021 1,880 2022 1,078 2023 584 Thereafter 871 Maturities of lease liabilities as of September 30, 2019 are as follows: Year Ending December 31, Operating Leases Finance Leases 2019 (a) $ 451 $ 245 2020 1,892 986 2021 1,673 987 2022 1,516 987 2023 1,396 1,506 2024 1,253 940 Thereafter 10,067 1,645 Total lease payments $ 18,248 $ 7,296 Less imputed interest $ (3,942 ) $ (1,248 ) Total $ 14,306 $ 6,048 (a) Excludes payments made for the first nine months of 2019. |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown on the Condensed Consolidated Statements of Cash Flows: September 30, 2019 December 31, 2018 Cash and cash equivalents 51,257 47,176 Restricted cash (included in "taxes, prepaid expenses and other assets") 566 539 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 51,823 $ 47,715 |
Schedule of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown on the Condensed Consolidated Statements of Cash Flows: September 30, 2019 December 31, 2018 Cash and cash equivalents 51,257 47,176 Restricted cash (included in "taxes, prepaid expenses and other assets") 566 539 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 51,823 $ 47,715 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of changes in total common stockholders' equity | The Company’s changes in total common stockholders’ equity for the nine months ended September 30, 2019 and 2018 were as follows: Nine months ended September 30, 2019 Common Stock Additional Retained Total Shares Amount (In thousands) Balance at January 1, 2019 48,065 $ 481 $ 337,623 $ 392,053 $ 730,157 Net loss (7,640 ) (7,640 ) Issuance of common stock 109 — 3,179 — 3,179 Repurchase of common stock (40 ) — (2,074 ) — (2,074 ) Dividends paid on common stock ($0.1975 per share) (9,493 ) (9,493 ) Balance at March 31, 2019 48,134 481 338,728 374,920 714,129 Net income 16,996 16,996 Issuance of common stock 8 — 1,675 — 1,675 Repurchase of common stock (2 ) — (129 ) — (129 ) Dividends paid on common stock ($0.1975 per share) (9,507 ) (9,507 ) Balance at June 30, 2019 48,140 481 340,274 382,409 723,164 Net income 42,424 42,424 Issuance of common stock 9 — 1,866 — 1,866 Repurchase of common stock (4 ) — (152 ) — (152 ) Dividends paid on common stock ($0.1975 per share) (9,507 ) (9,507 ) Balance at September 30, 2019 48,145 481 341,988 415,326 757,795 Nine months ended September 30, 2018 Common Stock Additional Retained Total Shares Amount (In thousands) Balance at January 1, 2018 48,012 $ 480 $ 336,229 $ 362,512 $ 699,221 Net loss (762 ) (762 ) Issuance of common stock 95 1 635 — 636 Repurchase of common stock (33 ) — (1,239 ) — (1,239 ) Dividends paid on common stock ($0.1875 per share) (9,003 ) (9,003 ) Balance at March 31, 2018 48,074 481 335,625 352,747 688,853 Net income 14,805 14,805 Issuance of common stock — — 737 — 737 Repurchase of common stock (4 ) — (124 ) — (124 ) Dividends paid on common stock ($0.1875 per share) (9,014 ) (9,014 ) Balance at June 30, 2018 48,070 481 336,238 358,538 695,257 Net income 36,173 36,173 Issuance of common stock 1 — 853 — 853 Repurchase of common stock (3 ) — (131 ) — (131 ) Dividends paid on common stock ($0.1875 per share) (9,012 ) (9,012 ) Balance at September 30, 2018 48,068 481 336,960 385,699 723,140 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of SARs which were dilutive | Three Months Ended September 30 2019 2018 (In thousands, except per share data) Net income available to common stockholders $ 42,424 $ 36,173 Weighted average common shares outstanding, basic 48,141 48,070 Weighted average common shares outstanding, dilutive 48,141 48,070 Earnings per share - basic $ 0.88 $ 0.75 Earnings per share - diluted $ 0.88 $ 0.75 Nine Months Ended September 30 2019 2018 (In thousands, except per share data) Net income available to common stockholders $ 51,780 $ 50,216 Weighted average common shares outstanding, basic 48,121 48,058 Weighted average common shares outstanding, dilutive 48,121 48,058 Earnings per share - basic $ 1.08 $ 1.04 Earnings per share - diluted $ 1.08 $ 1.04 |
Pension Plan and Other Postre_2
Pension Plan and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit costs for the pension plans and other postretirement benefits | The following tables list components of net periodic benefit costs for the pension plans and other postretirement benefits. The data listed under “pension plan” includes the qualified pension plan and the non-qualified supplemental executive retirement plan. The data listed under “other benefits” is for all other postretirement benefits. Three Months Ended September 30 Pension Plan Other Benefits 2019 2018 2019 2018 Service cost $ 6,910 $ 6,966 $ 2,082 $ 1,966 Interest cost 6,941 6,007 1,407 1,183 Expected return on plan assets (7,581 ) (7,052 ) (1,475 ) (1,397 ) Amortization of prior service cost 1,262 1,263 49 11 Recognized net actuarial loss 1,821 2,791 214 242 Net periodic benefit cost $ 9,353 $ 9,975 $ 2,277 $ 2,005 Nine Months Ended September 30 Pension Plan Other Benefits 2019 2018 2019 2018 Service cost $ 20,039 $ 21,770 $ 5,606 $ 7,066 Interest cost 20,225 17,996 4,081 4,152 Expected return on plan assets (22,714 ) (20,777 ) (4,346 ) (4,229 ) Amortization of prior service cost 3,786 3,789 148 32 Recognized net actuarial loss 4,445 8,386 421 1,789 Net periodic benefit cost $ 25,781 $ 31,164 $ 5,910 $ 8,810 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes is shown in the tables below: Three Months Ended September 30 2019 2018 Income tax expense $ 11,864 $ 11,481 Nine Months Ended September 30 2019 2018 Income tax expense $ 14,509 $ 15,068 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Regulated Operations [Abstract] | |
Schedule of regulatory assets and liabilities | Regulatory assets and liabilities were comprised of the following as of September 30, 2019 and December 31, 2018 : Recovery Period September 30, 2019 December 31, 2018 Regulatory Assets Pension and retiree group health Indefinitely $ 156,453 $ 156,947 Property-related temporary differences (tax benefits flowed through to customers) Indefinitely 100,943 99,376 Other accrued benefits Indefinitely 21,183 20,588 Net WRAM and MCBA long-term accounts receivable 1-2 years 30,454 17,134 Asset retirement obligations, net Indefinitely 19,619 18,197 Interim rates long-term accounts receivable 1 year 4,642 4,642 Tank coating 10 years 13,745 11,196 Recoverable property losses 10 years 5,539 1,275 Pension balancing account 1 year 20,158 16,494 Other components of net periodic benefit cost Indefinitely 4,641 3,221 Other regulatory assets Various 5,107 4,499 Total Regulatory Assets $ 382,484 $ 353,569 Regulatory Liabilities Future tax benefits due to customers $ 180,207 $ 180,205 Health care balancing account 4,315 3,516 Conservation program 5,659 6,880 Net WRAM and MCBA long-term payable 67 222 Tax accounting memorandum account 785 5,039 Cost of capital memorandum account 148 2,834 1,2,3 trichloropropane settlement proceeds 9,204 12,142 Other regulatory liabilities 272 437 Total Regulatory Liabilities $ 200,657 $ 211,275 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Supplemental balance sheet information related to leases | Supplemental balance sheet information related to leases was as follows: As of September 30, 2019 Operating leases Other assets $ 14,349 Accrued expenses and other liabilities $ 1,421 Regulatory liabilities and other 12,885 Total operating lease liabilities $ 14,306 Finance leases Utility plant $ 18,207 Accumulated depreciation and amortization (9,352 ) Net utility plant $ 8,855 Current maturities of long-term debt, net $ 670 Long-term debt, net 5,378 Total finance lease liabilities $ 6,048 Weighted average remaining lease term Operating leases 155 months Finance leases 80 months Weighted average discount rate Operating leases 3.7 % Finance leases 5.5 % |
Components of lease expense | The components of lease expense were as follows: Three Months Ended September 30 Nine Months Ended September 30 2019 Operating lease cost $ 490 $ 1,368 Finance lease cost: Amortization of right-of-use assets $ 292 $ 918 Interest on lease liabilities 85 264 Total finance lease cost $ 377 $ 1,182 Short-term lease cost $ 543 $ 716 Variable lease cost 66 198 Total lease cost $ 1,476 $ 3,464 |
Supplemental cash flow information related to leases | Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,322 Operating cash flows from finance leases 264 Financing cash flows from finance leases 508 Non-cash activities: right-of-use assets obtained in exchange for lease obligations: Operating leases 1,697 Finance leases 672 |
Maturities of lease liabilities | Maturities of lease payments to be received are as follows: Year Ending December 31, Operating Leases 2019 $ 3,153 2020 2,587 2021 1,880 2022 1,078 2023 584 Thereafter 871 Maturities of lease liabilities as of September 30, 2019 are as follows: Year Ending December 31, Operating Leases Finance Leases 2019 (a) $ 451 $ 245 2020 1,892 986 2021 1,673 987 2022 1,516 987 2023 1,396 1,506 2024 1,253 940 Thereafter 10,067 1,645 Total lease payments $ 18,248 $ 7,296 Less imputed interest $ (3,942 ) $ (1,248 ) Total $ 14,306 $ 6,048 (a) Excludes payments made for the first nine months of 2019. |
Maturities of lease liabilities | Maturities of lease liabilities as of September 30, 2019 are as follows: Year Ending December 31, Operating Leases Finance Leases 2019 (a) $ 451 $ 245 2020 1,892 986 2021 1,673 987 2022 1,516 987 2023 1,396 1,506 2024 1,253 940 Thereafter 10,067 1,645 Total lease payments $ 18,248 $ 7,296 Less imputed interest $ (3,942 ) $ (1,248 ) Total $ 14,306 $ 6,048 (a) Excludes payments made for the first nine months of 2019. |
Future minimum lease payments | As previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 and under the previous lease accounting standard, minimum lease payments, as of December 31, 2018, under non-cancelable operating leases by period were expected to be as follows: 2019 $ 1,771 2020 1,709 2021 1,485 2022 1,355 2023 1,261 Thereafter 10,538 Total $ 18,119 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of long-term debt, including current maturities and advances for construction | Advances for construction fair values were estimated using broker quotes from companies that frequently purchase these investments. September 30, 2019 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities, net $ 812,758 — $ 912,402 — $ 912,402 Advances for construction 190,272 — 79,818 — 79,818 Total $ 1,003,030 $ — $ 992,220 $ — $ 992,220 December 31, 2018 Fair Value Cost Level 1 Level 2 Level 3 Total Long-term debt, including current maturities, net $ 814,938 $ — $ 849,551 $ — $ 849,551 Advances for construction 186,342 — 77,204 — 77,204 Total $ 1,001,280 — $ 926,755 $ — $ 926,755 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Consolidating Balance Sheet | CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2019 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 3,194,372 $ 222,726 $ (7,197 ) $ 3,411,219 Less accumulated depreciation and amortization (1,083 ) (1,004,387 ) (64,654 ) 2,159 (1,067,965 ) Net utility plant 235 2,189,985 158,072 (5,038 ) 2,343,254 Current assets: Cash and cash equivalents 2,408 39,187 9,662 — 51,257 Receivables and unbilled revenue — 133,281 5,319 — 138,600 Receivables from affiliates 28,896 540 214 (29,650 ) — Other current assets 235 19,435 2,529 — 22,199 Total current assets 31,539 192,443 17,724 (29,650 ) 212,056 Other assets: Regulatory assets — 377,962 4,522 — 382,484 Investments in affiliates 756,177 — — (756,177 ) — Long-term affiliate notes receivable 26,288 — — (26,288 ) — Other assets 460 80,480 4,692 (214 ) 85,460 Total other assets 782,925 458,442 9,214 (782,679 ) 467,944 TOTAL ASSETS $ 814,699 $ 2,840,870 $ 185,010 $ (817,367 ) $ 3,023,254 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 757,795 $ 679,037 $ 82,366 $ (761,403 ) $ 757,795 Affiliate long-term debt — — 26,288 (26,288 ) — Long-term debt, net — 807,019 459 — 807,478 Total capitalization 757,795 1,486,056 109,113 (787,691 ) 1,565,273 Current liabilities: Current maturities of long-term debt, net — 5,122 158 — 5,280 Short-term borrowings 55,100 100,000 — — 155,100 Payables to affiliates — 4,906 24,744 (29,650 ) — Accounts payable — 103,748 4,845 — 108,593 Accrued expenses and other liabilities 329 60,621 4,021 — 64,971 Total current liabilities 55,429 274,397 33,768 (29,650 ) 333,944 Unamortized investment tax credits — 1,649 — — 1,649 Deferred income taxes 1,475 224,549 3,213 — 229,237 Pension and postretirement benefits other than pensions — 203,557 — (26 ) 203,557 Regulatory liabilities and other — 253,843 6,953 — 260,812 Advances for construction — 189,781 491 — 190,272 Contributions in aid of construction — 207,038 31,472 — 238,510 TOTAL CAPITALIZATION AND LIABILITIES $ 814,699 $ 2,840,870 $ 185,010 $ (817,367 ) $ 3,023,254 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated ASSETS Utility plant: Utility plant $ 1,318 $ 3,021,437 $ 213,888 $ (7,197 ) $ 3,229,446 Less accumulated depreciation and amortization (1,013 ) (938,072 ) (59,735 ) 2,097 (996,723 ) Net utility plant 305 2,083,365 154,153 (5,100 ) 2,232,723 Current assets: Cash and cash equivalents 3,779 33,763 9,634 — 47,176 Receivables and unbilled revenue 126 118,632 4,201 — 122,959 Receivables from affiliates 21,318 4,074 61 (25,453 ) — Other current assets 80 16,907 1,580 — 18,567 Total current assets 25,303 173,376 15,476 (25,453 ) 188,702 Other assets: Regulatory assets — 349,414 4,155 — 353,569 Investments in affiliates 733,156 — — (733,156 ) — Long-term affiliate notes receivable 27,829 — — (27,829 ) — Other assets 133 58,959 3,821 (203 ) 62,710 Total other assets 761,118 408,373 7,976 (761,188 ) 416,279 TOTAL ASSETS $ 786,726 $ 2,665,114 $ 177,605 $ (791,741 ) $ 2,837,704 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders’ equity $ 730,157 $ 659,340 79,093 $ (738,433 ) $ 730,157 Affiliate long-term debt — — 27,828 (27,828 ) — Long-term debt, net — 709,444 583 — 710,027 Total capitalization 730,157 1,368,784 107,504 (766,261 ) 1,440,184 Current liabilities: Current maturities of long-term debt, net — 104,664 247 — 104,911 Short-term borrowings 55,100 10,000 — — 65,100 Payables to affiliates 17 488 24,948 (25,453 ) — Accounts payable — 92,310 3,270 — 95,580 Accrued expenses and other liabilities 107 53,655 1,813 — 55,575 Total current liabilities 55,224 261,117 30,278 (25,453 ) 321,166 Unamortized investment tax credits — 1,649 — — 1,649 Deferred income taxes 1,376 210,052 1,648 (43 ) 213,033 Pension and postretirement benefits other than pensions — 193,538 — — 193,538 Regulatory and other liabilities (31 ) 250,720 5,817 16 256,522 Advances for construction — 185,843 499 — 186,342 Contributions in aid of construction — 193,411 31,859 — 225,270 TOTAL CAPITALIZATION AND LIABILITIES $ 786,726 $ 2,665,114 $ 177,605 $ (791,741 ) $ 2,837,704 |
Schedule of Condensed Consolidating Statement of Income | CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended September 30, 2019 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 219,261 $ 13,276 $ — $ 232,537 Operating expenses: Operations: Water production costs — 78,048 2,520 — 80,568 Administrative and general — 24,498 2,281 — 26,779 Other operations — 22,872 1,825 (147 ) 24,550 Maintenance — 6,823 242 — 7,065 Depreciation and amortization 23 20,770 1,501 (21 ) 22,273 Income tax (benefit) expense (132 ) 11,332 779 215 12,194 Property and other taxes — 6,620 921 — 7,541 Total operating (income) expenses (109 ) 170,963 10,069 47 180,970 Net operating income 109 48,298 3,207 (47 ) 51,567 Other income and expenses: Non-regulated revenue 599 3,865 399 (745 ) 4,118 Non-regulated expenses — (3,907 ) (444 ) — (4,351 ) Other components of net periodic benefit cost — (1,784 ) (73 ) — (1,857 ) Allowance for equity funds used during construction — 1,868 — — 1,868 Income tax (expense) benefit on other income and expenses (168 ) 268 22 208 330 Net other income (loss) 431 310 (96 ) (537 ) 108 Interest: Interest expense 450 9,820 608 (599 ) 10,279 Allowance for borrowed funds used during construction — (954 ) (74 ) — (1,028 ) Net interest expense 450 8,866 534 (599 ) 9,251 Equity earnings of subsidiaries 42,334 — — (42,334 ) — Net income $ 42,424 $ 39,742 $ 2,577 $ (42,319 ) $ 42,424 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the three months ended September 30, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 208,695 $ 12,593 $ — $ 221,288 Operating expenses: Operations: Water production costs — 76,317 2,501 — 78,818 Administrative and general — 23,878 2,615 — 26,493 Other operations — 20,271 1,816 (144 ) 21,943 Maintenance — 6,538 230 — 6,768 Depreciation and amortization 23 19,632 1,376 (22 ) 21,009 Income tax (benefit) expense (142 ) 10,435 1,271 222 11,786 Property and other taxes — 6,205 937 — 7,142 Total operating (income) expenses (119 ) 163,276 10,746 56 173,959 Net operating income 119 45,419 1,847 (56 ) 47,329 Other income and expenses: Non-regulated revenue 628 4,589 259 (773 ) 4,703 Non-regulated expenses — (4,675 ) (222 ) — (4,897 ) Other components of net periodic benefit cost — (1,834 ) (141 ) — (1,975 ) Allowance for equity funds used during construction — 1,023 — — 1,023 Income tax (expense) benefit on other income and expenses (176 ) 252 13 216 305 Net other income (loss) 452 (645 ) (91 ) (557 ) (841 ) Interest: Interest expense 486 10,443 574 (628 ) 10,875 Allowance for borrowed funds used during construction — (522 ) (38 ) — (560 ) Net interest expense 486 9,921 536 (628 ) 10,315 Equity earnings of subsidiaries 36,088 — — (36,088 ) — Net income $ 36,173 $ 34,853 $ 1,220 $ (36,073 ) $ 36,173 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the nine months ended September 30, 2019 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 502,785 $ 34,894 $ — $ 537,679 Operating expenses: Operations: Water production costs — 183,617 7,178 — 190,795 Administrative and general 23 73,908 7,379 — 81,310 Other operations — 59,851 5,499 (437 ) 64,913 Maintenance — 18,469 743 — 19,212 Depreciation and amortization 70 62,471 4,488 (62 ) 66,967 Income tax (benefit) expense (411 ) 12,019 1,265 651 13,524 Property and other taxes — 19,431 2,471 — 21,902 Total operating (income) expenses (318 ) 429,766 29,023 152 458,623 Net operating income 318 73,019 5,871 (152 ) 79,056 Other income and expenses: Non-regulated revenue 1,826 13,374 1,212 (2,263 ) 14,149 Non-regulated expenses — (9,610 ) (860 ) — (10,470 ) Other components of net periodic benefit cost — (4,177 ) (131 ) — (4,308 ) Allowance for equity funds used during construction — 5,087 — — 5,087 Income tax expense on other income and expenses (511 ) (1,028 ) (79 ) 633 (985 ) Net other income 1,315 3,646 142 (1,630 ) 3,473 Interest: Interest expense 1,376 32,141 1,841 (1,826 ) 33,532 Allowance for borrowed funds used during construction — (2,592 ) (191 ) — (2,783 ) Net interest expense 1,376 29,549 1,650 (1,826 ) 30,749 Equity earnings of subsidiaries 51,523 — — (51,523 ) — Net income $ 51,780 $ 47,116 $ 4,363 $ (51,479 ) $ 51,780 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the nine months ended September 30, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating revenue $ — $ 499,173 $ 31,606 $ — $ 530,779 Operating expenses: Operations: Water production costs — 185,149 6,648 — 191,797 Administrative and general — 69,531 7,664 — 77,195 Other operations — 55,626 5,117 (436 ) 60,307 Maintenance — 16,974 622 — 17,596 Depreciation and amortization 70 58,909 3,763 (65 ) 62,677 Income tax (benefit) expense (342 ) 15,081 1,591 620 16,950 Property and other taxes — 17,894 2,359 — 20,253 Total operating (income) expenses (272 ) 419,164 27,764 119 446,775 Net operating income 272 80,009 3,842 (119 ) 84,004 Other income and expenses: Non-regulated revenue 1,716 13,572 831 (2,152 ) 13,967 Non-regulated expenses — (15,943 ) (506 ) — (16,449 ) Other components of net periodic benefit cost — (6,618 ) (366 ) — (6,984 ) Allowance for equity funds used during construction — 2,644 — — 2,644 Income tax (expense) benefit on other income and expenses (480 ) 1,776 (16 ) 602 1,882 Net other income (loss) 1,236 (4,569 ) (57 ) (1,550 ) (4,940 ) Interest: Interest expense 1,155 29,095 1,673 (1,716 ) 30,207 Allowance for borrowed funds used during construction — (1,250 ) (109 ) — (1,359 ) Net interest expense 1,155 27,845 1,564 (1,716 ) 28,848 Equity earnings of subsidiaries 49,863 — — (49,863 ) — Net income $ 50,216 $ 47,595 $ 2,221 $ (49,816 ) $ 50,216 |
Schedule of Condensed Consolidating Statement of Cash Flows | CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2019 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income $ 51,780 $ 47,116 $ 4,363 $ (51,479 ) $ 51,780 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (51,523 ) — — 51,523 — Dividends received from affiliates 28,507 — — (28,507 ) — Depreciation and amortization 70 63,975 4,539 (62 ) 68,522 Changes in value of life insurance contracts — (3,433 ) — — (3,433 ) Allowance for equity funds used during construction — (5,087 ) — — (5,087 ) Changes in operating assets and liabilities 194 (6,744 ) 1,509 — (5,041 ) Other changes in noncurrent assets and liabilities 5,239 14,560 1,785 18 21,602 Net cash provided by operating activities 34,267 110,387 12,196 (28,507 ) 128,343 Investing activities: Utility plant expenditures — (185,883 ) (9,059 ) — (194,942 ) Changes in affiliate advances (3,199 ) 3,534 (320 ) (15 ) — Issuance of affiliate short-term borrowings (4,300 ) — — 4,300 — Reduction of affiliates long-term debt 1,462 — — (1,462 ) — Purchase of life insurance contracts — (2,216 ) — — (2,216 ) Net cash used in investing activities (6,037 ) (184,565 ) (9,379 ) 2,823 (197,158 ) Financing Activities: Short-term borrowings — 210,000 — — 210,000 Repayment of short-term borrowings — (120,000 ) — — (120,000 ) Changes in affiliate advances (17 ) 4,419 (4,417 ) 15 — Proceeds from affiliate short-term borrowings — — 4,300 (4,300 ) — Repayment of affiliates long-term borrowings — — (1,462 ) 1,462 — Issuance of long term debt, net of expenses — 398,431 — — 398,431 Repayment of long-term debt — (401,417 ) (213 ) — (401,630 ) Advances and contributions in aid of construction — 21,176 90 — 21,266 Refunds of advances for construction — (5,560 ) — — (5,560 ) Repurchase of common stock (2,355 ) — — — (2,355 ) Issuance of common stock 1,278 — — — 1,278 Dividends paid to non-affiliates (28,507 ) — — — (28,507 ) Dividends paid to affiliates — (27,419 ) (1,088 ) 28,507 — Net cash (used in) provided by financing activities (29,601 ) 79,630 (2,790 ) 25,684 72,923 Change in cash, cash equivalents, and restricted cash (1,371 ) 5,452 27 — 4,108 Cash, cash equivalents, and restricted cash at beginning of period 3,779 34,238 9,698 — 47,715 Cash, cash equivalents, and restricted cash at end of period $ 2,408 $ 39,690 $ 9,725 — $ 51,823 CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the nine months ended September 30, 2018 (In thousands) Parent Company Cal Water All Other Subsidiaries Consolidating Adjustments Consolidated Operating activities: Net income $ 50,216 $ 47,595 $ 2,221 $ (49,816 ) $ 50,216 Adjustments to reconcile net income to net cash provided by operating activities: Equity earnings of subsidiaries (49,863 ) — — 49,863 — Dividends received from affiliates 27,029 — — (27,029 ) — Depreciation and amortization 70 60,298 3,828 (65 ) 64,131 Changes in value of life insurance contracts — 124 — — 124 Allowance for equity funds used during construction — (2,644 ) — — (2,644 ) Changes in operating assets and liabilities (281 ) 6,135 1,178 — 7,032 Other changes in noncurrent assets and liabilities 2,518 (3,881 ) 1,989 18 644 Net cash provided by operating activities 29,689 107,627 9,216 (27,029 ) 119,503 Investing activities: Utility plant expenditures 4 (205,218 ) (7,642 ) — (212,856 ) Changes in affiliate advances (975 ) 3,198 (269 ) (1,954 ) — Issuance of affiliate short-term borrowings (23,700 ) — — 23,700 — Reduction of affiliates long-term debt 1,224 — — (1,224 ) — Life insurance proceeds — 3,491 — — 3,491 Purchase of life insurance contracts — (4,925 ) — — (4,925 ) Net cash used in investing activities (23,447 ) (203,454 ) (7,911 ) 20,522 (214,290 ) Financing Activities: Short-term borrowings 20,000 121,000 — — 141,000 Repayment of short-term borrowings — (341,000 ) — — (341,000 ) Changes in affiliate advances — 1,129 (3,083 ) 1,954 — Proceeds from affiliate short-term borrowings — 20,000 3,700 (23,700 ) — Repayment of affiliates long-term borrowings — — (1,224 ) 1,224 — Issuance of long-term debt, net of expenses — 299,383 — — 299,383 Repayment of long-term debt — (12,299 ) (200 ) — (12,499 ) Advances and contributions in aid for construction — 13,288 342 — 13,630 Refunds of advances for construction — (5,452 ) (10 ) — (5,462 ) Repurchase of common stock (1,496 ) — — — (1,496 ) Dividends paid to non-affiliates (27,029 ) — — — (27,029 ) Dividends paid to affiliates — (25,959 ) (1,070 ) 27,029 — Net cash (used in) provided by financing activities (8,525 ) 70,090 (1,545 ) 6,507 66,527 Change in cash, cash equivalents, and restricted cash (2,283 ) (25,737 ) (240 ) — (28,260 ) Cash, cash equivalents, and restricted cash at beginning of period 4,728 81,453 9,171 — 95,352 Cash, cash equivalents, and restricted cash at end of period $ 2,445 $ 55,716 $ 8,931 — $ 67,092 |
Immaterial Restatement of Pri_2
Immaterial Restatement of Prior Period Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The corrections to the Company's Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2018 were as follows: Condensed Consolidated Statements of Income For the three months ended September 30, 2018 As Previously Reported Corrections As Corrected (In thousands, except per share data) Operating revenue $ 218,983 $ 2,305 $ 221,288 Operating expenses: Income taxes 11,262 524 11,786 Total operating expenses 173,435 524 173,959 Net operating income 45,548 1,781 47,329 Net income $ 34,392 $ 1,781 $ 36,173 Earnings per share: Basic $ 0.72 $ 0.03 $ 0.75 Diluted $ 0.72 $ 0.03 $ 0.75 For the nine months ended September 30, 2018 As Previously Reported Corrections As Corrected (In thousands, except per share data) Operating revenue $ 523,862 $ 6,917 $ 530,779 Operating expenses: Income taxes 15,380 1,570 16,950 Total operating expenses 445,205 1,570 446,775 Net operating income 78,657 5,347 84,004 Net income $ 44,869 $ 5,347 $ 50,216 Earnings per share: Basic $ 0.93 $ 0.11 $ 1.04 Diluted $ 0.93 $ 0.11 $ 1.04 The corrections to the Company's retained earnings and total stockholders’ equity as of January 1, 2018, March 31, 2018, June 30, 2018, and September 30, 2018 were as follows: January 1, 2018 As Previously Reported Corrections As Corrected (In thousands) Retained earnings $ 356,753 $ 5,759 $ 362,512 Total common stockholders' equity 693,462 5,759 699,221 March 31, 2018 As Previously Reported Corrections As Corrected (In thousands) Retained earnings $ 345,205 $ 7,542 $ 352,747 Total common stockholders' equity 681,311 7,542 688,853 June 30, 2018 As Previously Reported Corrections As Corrected (In thousands) Retained earnings $ 349,213 $ 9,325 $ 358,538 Total common stockholders' equity 685,932 9,325 695,257 September 30, 2018 As Previously Reported Corrections As Corrected (In thousands) Retained earnings $ 374,593 $ 11,106 $ 385,699 Total common stockholders' equity 712,034 11,106 723,140 The corrections to the Company's Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2018 were as follows: Condensed Consolidated Statement of Cash Flows For the nine months ended September 30, 2018 As Previously Reported Corrections As Corrected (In thousands) Operating activities: Net income $ 44,869 $ 5,347 $ 50,216 Other changes in noncurrent assets and liabilities 5,991 (5,347 ) 644 Net cash provided by operating activities $ 119,503 $ — $ 119,503 |
Organization and Operations a_2
Organization and Operations and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Line Items] | |||||||
Revenue from contracts with customers | $ 214,963 | $ 209,541 | $ 499,840 | $ 515,567 | |||
Total operating revenue | 232,537 | 221,288 | $ 537,679 | 530,779 | |||
Maximum collection period | 24 months | ||||||
Total non-regulated revenue | $ 4,118 | 4,703 | $ 14,149 | 13,967 | |||
Lessee options to extend the lease | 15 years | 15 years | |||||
2019 | $ 3,153 | $ 3,153 | |||||
2020 | 2,587 | 2,587 | |||||
2021 | 1,880 | 1,880 | |||||
2022 | 1,078 | 1,078 | |||||
2023 | 584 | 584 | |||||
Thereafter | 871 | 871 | |||||
Cash and cash equivalents | 51,257 | 51,257 | $ 47,176 | ||||
Restricted cash (included in taxes, prepaid expenses and other assets) | 566 | 566 | 539 | ||||
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | 51,823 | 67,092 | 51,823 | 67,092 | $ 47,715 | $ 95,352 | |
Operating lease liability | $ 14,306 | $ 14,306 | |||||
ASU 2016-02 | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Operating lease liability | $ 13,800 | ||||||
Minimum | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Operating lease term | 5 years | 5 years | |||||
Maximum | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Operating lease term | 10 years | 10 years | |||||
Regulated water and wastewater services | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Revenue from contracts with customers | $ 214,963 | 209,541 | $ 499,840 | 515,567 | |||
Regulatory balancing account revenue | 17,574 | 11,747 | 37,839 | 15,212 | |||
Total operating revenue | 232,537 | 221,288 | 537,679 | 530,779 | |||
Residential | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Revenue from contracts with customers | 139,137 | 138,939 | 330,745 | 340,107 | |||
Business | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Revenue from contracts with customers | 38,247 | 38,538 | 95,433 | 97,720 | |||
Industrial | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Revenue from contracts with customers | 9,077 | 8,987 | 23,866 | 24,507 | |||
Public authorities | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Revenue from contracts with customers | 12,482 | 12,180 | 24,566 | 25,875 | |||
Other | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Revenue from contracts with customers | 16,020 | 10,897 | 25,230 | 27,358 | |||
Operating and maintenance revenue | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Revenue from contracts with customers | 2,929 | 2,816 | 9,248 | 8,278 | |||
Other non-regulated revenue | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Revenue from contracts with customers | 626 | 1,328 | 3,189 | 4,053 | |||
Non-regulated revenue | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Revenue from contracts with customers | 3,555 | 4,144 | 12,437 | 12,331 | |||
Lease revenue | 563 | 559 | 1,712 | 1,636 | |||
Total non-regulated revenue | $ 4,118 | $ 4,703 | $ 14,149 | $ 13,967 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock-based Compensation | ||||
Recorded compensation costs for the RSAs and RSUs | $ 1.4 | $ 0.8 | $ 5.3 | $ 2.3 |
RSAs | ||||
Stock-based Compensation | ||||
Granted (in shares) | 0 | 1,138 | 36,183 | 47,273 |
Canceled (in shares) | 2,739 | 3,214 | 14,394 | 16,520 |
Weighted average grant date fair value (in dollars per share) | $ 52.83 | $ 35.40 | ||
RSUs | ||||
Stock-based Compensation | ||||
Granted (in shares) | 0 | 0 | 26,473 | 28,594 |
Awards issued (in shares) | 0 | 0 | 62,726 | 48,753 |
Canceled (in shares) | 0 | 0 | 31,177 | 24,009 |
Weighted average grant date fair value (in dollars per share) | $ 52.83 | $ 35.40 | ||
Performance period | 3 years |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Oct. 30, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance (in shares) | 48,065 | 48,065 | |||||||
Balance | $ 723,164 | $ 714,129 | $ 730,157 | $ 695,257 | $ 688,853 | $ 699,221 | $ 730,157 | $ 699,221 | |
Net income (loss) | 42,424 | 16,996 | (7,640) | 36,173 | 14,805 | (762) | $ 51,780 | 50,216 | |
Issuance of common stock | 1,866 | 1,675 | 3,179 | 853 | 737 | 636 | |||
Repurchase of common stock | (152) | (129) | (2,074) | (131) | (124) | (1,239) | |||
Dividends paid on common stock | $ (9,507) | $ (9,507) | $ (9,493) | $ (9,012) | $ (9,014) | $ (9,003) | |||
Dividends paid on common stock (in dollars per share) | $ 0.1975 | $ 0.1975 | $ 0.1975 | $ 0.1875 | $ 0.1875 | $ 0.1875 | |||
Balance (in shares) | 48,145 | 48,145 | |||||||
Balance | $ 757,795 | $ 723,164 | $ 714,129 | $ 723,140 | $ 695,257 | $ 688,853 | $ 757,795 | $ 723,140 | |
Common Stock | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance (in shares) | 48,140 | 48,134 | 48,065 | 48,070 | 48,074 | 48,012 | 48,065 | 48,012 | |
Balance | $ 481 | $ 481 | $ 481 | $ 481 | $ 481 | $ 480 | $ 481 | $ 480 | |
Issuance of common stock (in shares) | 9 | 8 | 109 | 1 | 95 | ||||
Issuance of common stock | $ 1 | ||||||||
Repurchase of common stock (in shares) | (4) | (2) | (40) | (3) | (4) | (33) | |||
Balance (in shares) | 48,145 | 48,140 | 48,134 | 48,068 | 48,070 | 48,074 | 48,145 | 48,068 | |
Balance | $ 481 | $ 481 | $ 481 | $ 481 | $ 481 | $ 481 | $ 481 | $ 481 | |
Additional Paid-in Capital | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance | 340,274 | 338,728 | 337,623 | 336,238 | 335,625 | 336,229 | 337,623 | 336,229 | |
Issuance of common stock | 1,866 | 1,675 | 3,179 | 853 | 737 | 635 | |||
Repurchase of common stock | (152) | (129) | (2,074) | (131) | (124) | (1,239) | |||
Balance | 341,988 | 340,274 | 338,728 | 336,960 | 336,238 | 335,625 | 341,988 | 336,960 | |
Retained Earnings | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance | 382,409 | 374,920 | 392,053 | 358,538 | 352,747 | 362,512 | 392,053 | 362,512 | |
Net income (loss) | 42,424 | 16,996 | (7,640) | 36,173 | 14,805 | (762) | |||
Dividends paid on common stock | (9,507) | (9,507) | (9,493) | (9,012) | (9,014) | (9,003) | |||
Balance | $ 415,326 | $ 382,409 | $ 374,920 | $ 385,699 | $ 358,538 | $ 352,747 | $ 415,326 | $ 385,699 | |
Subsequent Event | |||||||||
Class of Stock [Line Items] | |||||||||
Equity Issuance, Amount Authorized | $ 300,000 | ||||||||
Equity Issuance, Term | 3 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||||
Net income available to common stockholders | $ 42,424 | $ 16,996 | $ (7,640) | $ 36,173 | $ 14,805 | $ (762) | $ 51,780 | $ 50,216 |
Weighted average common shares outstanding, basic (in shares) | 48,141 | 48,070 | 48,121 | 48,058 | ||||
Weighed average common shares outstanding, dilutive (in shares) | 48,141 | 48,070 | 48,121 | 48,058 | ||||
Earnings per share - basic (in dollars per share) | $ 0.88 | $ 0.75 | $ 1.08 | $ 1.04 | ||||
Earnings per share - diluted (in dollars per share) | $ 0.88 | $ 0.75 | $ 1.08 | $ 1.04 |
Pension Plan and Other Postre_3
Pension Plan and Other Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Pension Plan | ||||
Pension Plan and Other Postretirement Benefits | ||||
Employer cash contributions | $ 12,500 | $ 42,300 | ||
Estimated cash contributions in the current fiscal year | $ 18,800 | 18,800 | ||
Components of the pension plans and other postretirement benefits | ||||
Service cost | 6,910 | $ 6,966 | 20,039 | 21,770 |
Interest cost | 6,941 | 6,007 | 20,225 | 17,996 |
Expected return on plan assets | (7,581) | (7,052) | (22,714) | (20,777) |
Amortization of prior service cost | 1,262 | 1,263 | 3,786 | 3,789 |
Recognized net actuarial loss | 1,821 | 2,791 | 4,445 | 8,386 |
Net periodic benefit cost | 9,353 | 9,975 | 25,781 | 31,164 |
Other Benefits | ||||
Pension Plan and Other Postretirement Benefits | ||||
Employer cash contributions | 5,600 | 8,000 | ||
Estimated cash contributions in the current fiscal year | 7,900 | 7,900 | ||
Components of the pension plans and other postretirement benefits | ||||
Service cost | 2,082 | 1,966 | 5,606 | 7,066 |
Interest cost | 1,407 | 1,183 | 4,081 | 4,152 |
Expected return on plan assets | (1,475) | (1,397) | (4,346) | (4,229) |
Amortization of prior service cost | 49 | 11 | 148 | 32 |
Recognized net actuarial loss | 214 | 242 | 421 | 1,789 |
Net periodic benefit cost | $ 2,277 | $ 2,005 | $ 5,910 | $ 8,810 |
Short-term and Long-term Borr_2
Short-term and Long-term Borrowings (Details) - USD ($) $ in Millions | Jun. 11, 2019 | Mar. 29, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 550 | ||||
Debt term | 5 years | ||||
Average borrowing rate | 3.38% | 2.88% | |||
Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt term | 1 month | ||||
Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt term | 6 months | ||||
Revolving Credit Facility | Eurodollar | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.65% | ||||
Revolving Credit Facility | Eurodollar | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.875% | ||||
Revolving Credit Facility | Parent Company | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 150 | ||||
Available expansion amount | 50 | ||||
Outstanding borrowings | $ 55.1 | $ 55.1 | |||
Cal Water | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 400 | ||||
Debt term | 24 months | ||||
Available expansion amount | $ 150 | ||||
Outstanding borrowings | $ 100 | $ 10 | |||
Cal Water | First Mortgage Bond | |||||
Debt Instrument [Line Items] | |||||
Debt issued | $ 400 | ||||
Cal Water | First Mortgage Bond | Series UUU | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of debt | 300 | ||||
Cal Water | First Mortgage Bond | Series VVV | |||||
Debt Instrument [Line Items] | |||||
Debt issued | $ 100 | ||||
Interest rate | 3.40% | ||||
Cal Water | First Mortgage Bond | Series WWW | |||||
Debt Instrument [Line Items] | |||||
Debt issued | $ 100 | ||||
Interest rate | 4.07% | ||||
Cal Water | First Mortgage Bond | Series YYY | |||||
Debt Instrument [Line Items] | |||||
Debt issued | $ 200 | ||||
Interest rate | 4.17% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||||
Income tax expense | $ 11,864 | $ 11,481 | $ 14,509 | $ 15,068 | |
Income tax expense increase (decrease) | 400 | (600) | |||
Increase (decrease) in pre-tax net income | (6,600) | ||||
Ratepayer net refund | 107,000 | 107,000 | |||
Unrecognized tax benefits | 10,600 | 9,700 | 10,600 | 9,700 | |
Tax benefits that, if recognized, would affect the effective tax rate | $ 3,100 | $ 2,900 | $ 3,100 | $ 2,900 | |
Scenario, Forecast | |||||
Income Taxes [Line Items] | |||||
Effective tax rate estimate | 22.00% |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | $ 382,484 | $ 353,569 |
Total Regulatory Liabilities | 200,657 | 211,275 |
Short-term portion of the regulatory assets | 33,437 | 42,394 |
Short-term portion of the regulatory liabilities | 6,887 | 12,213 |
Property-related temporary differences (tax benefits flowed through to customers) | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | 180,207 | 180,205 |
Health care balancing account | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | 4,315 | 3,516 |
Conservation program | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | 5,659 | 6,880 |
Net WRAM and MCBA long-term payable | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | 67 | 222 |
Tax accounting memorandum account | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | 785 | 5,039 |
Cost of capital memorandum account | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | 148 | 2,834 |
1,2,3 trichloropropane settlement proceeds | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | 9,204 | 12,142 |
Other regulatory liabilities | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | 272 | 437 |
Pension and retiree group health | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | 156,453 | 156,947 |
Property-related temporary differences (tax benefits flowed through to customers) | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | 100,943 | 99,376 |
Other accrued benefits | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | 21,183 | 20,588 |
Net WRAM and MCBA long-term accounts receivable | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | 30,454 | 17,134 |
Asset retirement obligations, net | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | $ 19,619 | 18,197 |
Interim rates long-term accounts receivable | ||
Regulatory Assets and Liabilities | ||
Recovery Period | 1 year | |
Total Regulatory Assets | $ 4,642 | 4,642 |
Tank coating | ||
Regulatory Assets and Liabilities | ||
Recovery Period | 10 years | |
Total Regulatory Assets | $ 13,745 | 11,196 |
Recoverable property losses | ||
Regulatory Assets and Liabilities | ||
Recovery Period | 10 years | |
Total Regulatory Assets | $ 5,539 | 1,275 |
Pension balancing account | ||
Regulatory Assets and Liabilities | ||
Recovery Period | 1 year | |
Total Regulatory Assets | $ 20,158 | 16,494 |
Other components of net periodic benefit cost | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | 4,641 | 3,221 |
Other regulatory assets | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | $ 5,107 | $ 4,499 |
Minimum | Net WRAM and MCBA long-term accounts receivable | ||
Regulatory Assets and Liabilities | ||
Recovery Period | 1 year | |
Maximum | Net WRAM and MCBA long-term accounts receivable | ||
Regulatory Assets and Liabilities | ||
Recovery Period | 2 years |
Commitments and Contingencies -
Commitments and Contingencies - Other Disclosures (Details) | Sep. 30, 2019 |
Lessee, Lease, Description [Line Items] | |
Operating lease renewal term | 25 years |
Finance lease renewal term | 25 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 1 year |
Finance lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 50 years |
Finance lease term | 50 years |
Commitments and Contingencies_2
Commitments and Contingencies - Supplemental Balance Sheet Information (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Operating leases | |
Other assets | $ 14,349 |
Accrued expenses and other liabilities | 1,421 |
Regulatory liabilities and other | 12,885 |
Total | 14,306 |
Finance leases | |
Utility plant | 18,207 |
Accumulated depreciation and amortization | (9,352) |
Net utility plant | 8,855 |
Current maturities of long-term debt, net | 670 |
Long-term debt, net | 5,378 |
Total finance lease liabilities | $ 6,048 |
Weighted average remaining lease term | |
Operating leases | 155 months |
Finance leases | 80 months |
Weighted average discount rate | |
Operating leases | 3.70% |
Finance leases | 5.50% |
Commitments and Contingencies_3
Commitments and Contingencies - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 490 | $ 1,368 |
Finance lease cost: | ||
Amortization of right-of-use assets | 292 | 918 |
Interest on lease liabilities | 85 | 264 |
Total finance lease cost | 377 | 1,182 |
Short-term lease cost | 543 | 716 |
Variable lease cost | 66 | 198 |
Total Lease Cost | $ 1,476 | $ 3,464 |
Commitments and Contingencies_4
Commitments and Contingencies - Supplemental Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 1,322 |
Operating cash flows from finance leases | 264 |
Financing cash flows from finance leases | 508 |
Non-cash activities: right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 1,697 |
Finance leases | $ 672 |
Commitments and Contingencies_5
Commitments and Contingencies - Maturities of Lease Liabilities and Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2019 | $ 451 | |
2020 | 1,892 | |
2021 | 1,673 | |
2022 | 1,516 | |
2023 | 1,396 | |
2024 | 1,253 | |
Thereafter | 10,067 | |
Total lease payments | 18,248 | |
Less imputed interest | (3,942) | |
Total | 14,306 | |
Finance Leases | ||
2019 | 245 | |
2020 | 986 | |
2021 | 987 | |
2022 | 987 | |
2023 | 1,506 | |
2024 | 940 | |
Thereafter | 1,645 | |
Total lease payments | 7,296 | |
Less imputed interest | (1,248) | |
Total | $ 6,048 | |
Previous Lease Accounting Standard, Minimum Lease Payments | ||
2019 | $ 1,771 | |
2020 | 1,709 | |
2021 | 1,485 | |
2022 | 1,355 | |
2023 | 1,261 | |
Thereafter | 10,538 | |
Total | $ 18,119 |
Commitments and Contingencies_6
Commitments and Contingencies - Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Contingency loss recognized liability | $ 2.6 | $ 2.3 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value of Financial Assets and Liabilities | ||
Risk premium (as a percent) | 1.83% | |
Advances for construction | $ 190,272 | $ 186,342 |
Level 1 | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 0 | 0 |
Advances for construction | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 912,402 | 849,551 |
Advances for construction | 79,818 | 77,204 |
Total | 992,220 | 926,755 |
Level 3 | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 0 | 0 |
Advances for construction | 0 | 0 |
Total | 0 | 0 |
Cost | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 812,758 | 814,938 |
Advances for construction | 190,272 | 186,342 |
Total | 1,003,030 | 1,001,280 |
Total | ||
Fair Value of Financial Assets and Liabilities | ||
Long-term debt, including current maturities, net | 912,402 | 849,551 |
Advances for construction | 79,818 | 77,204 |
Total | $ 992,220 | $ 926,755 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements - Additional Information (Details) - USD ($) | Sep. 30, 2019 | Nov. 17, 2010 |
Cal Water | ||
Debt Instrument [Line Items] | ||
Ownership interest (as a percent) | 100.00% | |
All Other Subsidiaries | ||
Debt Instrument [Line Items] | ||
Ownership interest (as a percent) | 100.00% | |
First Mortgage Bonds, 5.500% due 2040 | Cal Water | ||
Debt Instrument [Line Items] | ||
Debt issued | $ 100,000,000 | |
Interest rate | 5.50% |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Utility plant: | |||||||||
Utility plant | $ 3,411,219 | $ 3,229,446 | |||||||
Less accumulated depreciation and amortization | (1,067,965) | (996,723) | |||||||
Net utility plant | 2,343,254 | 2,232,723 | |||||||
Current assets: | |||||||||
Cash and cash equivalents | 51,257 | 47,176 | |||||||
Receivables and unbilled revenue | 138,600 | 122,959 | |||||||
Receivables from affiliates | 0 | 0 | |||||||
Other current assets | 22,199 | 18,567 | |||||||
Total current assets | 212,056 | 188,702 | |||||||
Other assets: | |||||||||
Regulatory assets | 382,484 | 353,569 | |||||||
Investments in affiliates | 0 | 0 | |||||||
Long-term affiliate notes receivable | 0 | 0 | |||||||
Other assets | 85,460 | 62,710 | |||||||
Total other assets | 467,944 | 416,279 | |||||||
TOTAL ASSETS | 3,023,254 | 2,837,704 | |||||||
Capitalization: | |||||||||
Common stockholders’ equity | 757,795 | $ 723,164 | $ 714,129 | 730,157 | $ 723,140 | $ 695,257 | $ 688,853 | $ 699,221 | $ 699,221 |
Affiliate long-term debt | 0 | 0 | |||||||
Long-term debt, net | 807,478 | 710,027 | |||||||
Total capitalization | 1,565,273 | 1,440,184 | |||||||
Current liabilities: | |||||||||
Current maturities of long-term debt, net | 5,280 | 104,911 | |||||||
Short-term borrowings | 155,100 | 65,100 | |||||||
Payables to affiliates | 0 | 0 | |||||||
Accounts payable | 108,593 | 95,580 | |||||||
Accrued expenses and other liabilities | 64,971 | 55,575 | |||||||
Total current liabilities | 333,944 | 321,166 | |||||||
Unamortized investment tax credits | 1,649 | 1,649 | |||||||
Deferred income taxes | 229,237 | 213,033 | |||||||
Pension and postretirement benefits other than pensions | 203,557 | 193,538 | |||||||
Regulatory liabilities and other | 260,812 | 256,522 | |||||||
Advances for construction | 190,272 | 186,342 | |||||||
Contributions in aid of construction | 238,510 | 225,270 | |||||||
TOTAL CAPITALIZATION AND LIABILITIES | 3,023,254 | 2,837,704 | |||||||
Consolidating Adjustments | |||||||||
Utility plant: | |||||||||
Utility plant | (7,197) | (7,197) | |||||||
Less accumulated depreciation and amortization | 2,159 | 2,097 | |||||||
Net utility plant | (5,038) | (5,100) | |||||||
Current assets: | |||||||||
Cash and cash equivalents | 0 | 0 | |||||||
Receivables and unbilled revenue | 0 | 0 | |||||||
Receivables from affiliates | (29,650) | (25,453) | |||||||
Other current assets | 0 | 0 | |||||||
Total current assets | (29,650) | (25,453) | |||||||
Other assets: | |||||||||
Regulatory assets | 0 | 0 | |||||||
Investments in affiliates | (756,177) | (733,156) | |||||||
Long-term affiliate notes receivable | (26,288) | (27,829) | |||||||
Other assets | (214) | (203) | |||||||
Total other assets | (782,679) | (761,188) | |||||||
TOTAL ASSETS | (817,367) | (791,741) | |||||||
Capitalization: | |||||||||
Common stockholders’ equity | (761,403) | (738,433) | |||||||
Affiliate long-term debt | (26,288) | (27,828) | |||||||
Long-term debt, net | 0 | 0 | |||||||
Total capitalization | (787,691) | (766,261) | |||||||
Current liabilities: | |||||||||
Current maturities of long-term debt, net | 0 | 0 | |||||||
Short-term borrowings | 0 | 0 | |||||||
Payables to affiliates | (29,650) | (25,453) | |||||||
Accounts payable | 0 | 0 | |||||||
Accrued expenses and other liabilities | 0 | 0 | |||||||
Total current liabilities | (29,650) | (25,453) | |||||||
Unamortized investment tax credits | 0 | 0 | |||||||
Deferred income taxes | 0 | (43) | |||||||
Pension and postretirement benefits other than pensions | (26) | 0 | |||||||
Regulatory liabilities and other | 0 | 16 | |||||||
Advances for construction | 0 | 0 | |||||||
Contributions in aid of construction | 0 | 0 | |||||||
TOTAL CAPITALIZATION AND LIABILITIES | (817,367) | (791,741) | |||||||
Parent Company | Reportable Legal Entities | |||||||||
Utility plant: | |||||||||
Utility plant | 1,318 | 1,318 | |||||||
Less accumulated depreciation and amortization | (1,083) | (1,013) | |||||||
Net utility plant | 235 | 305 | |||||||
Current assets: | |||||||||
Cash and cash equivalents | 2,408 | 3,779 | |||||||
Receivables and unbilled revenue | 0 | 126 | |||||||
Receivables from affiliates | 28,896 | 21,318 | |||||||
Other current assets | 235 | 80 | |||||||
Total current assets | 31,539 | 25,303 | |||||||
Other assets: | |||||||||
Regulatory assets | 0 | 0 | |||||||
Investments in affiliates | 756,177 | 733,156 | |||||||
Long-term affiliate notes receivable | 26,288 | 27,829 | |||||||
Other assets | 460 | 133 | |||||||
Total other assets | 782,925 | 761,118 | |||||||
TOTAL ASSETS | 814,699 | 786,726 | |||||||
Capitalization: | |||||||||
Common stockholders’ equity | 757,795 | 730,157 | |||||||
Affiliate long-term debt | 0 | 0 | |||||||
Long-term debt, net | 0 | 0 | |||||||
Total capitalization | 757,795 | 730,157 | |||||||
Current liabilities: | |||||||||
Current maturities of long-term debt, net | 0 | 0 | |||||||
Short-term borrowings | 55,100 | 55,100 | |||||||
Payables to affiliates | 0 | 17 | |||||||
Accounts payable | 0 | 0 | |||||||
Accrued expenses and other liabilities | 329 | 107 | |||||||
Total current liabilities | 55,429 | 55,224 | |||||||
Unamortized investment tax credits | 0 | 0 | |||||||
Deferred income taxes | 1,475 | 1,376 | |||||||
Pension and postretirement benefits other than pensions | 0 | 0 | |||||||
Regulatory liabilities and other | 0 | (31) | |||||||
Advances for construction | 0 | 0 | |||||||
Contributions in aid of construction | 0 | 0 | |||||||
TOTAL CAPITALIZATION AND LIABILITIES | 814,699 | 786,726 | |||||||
Cal Water | Reportable Legal Entities | |||||||||
Utility plant: | |||||||||
Utility plant | 3,194,372 | 3,021,437 | |||||||
Less accumulated depreciation and amortization | (1,004,387) | (938,072) | |||||||
Net utility plant | 2,189,985 | 2,083,365 | |||||||
Current assets: | |||||||||
Cash and cash equivalents | 39,187 | 33,763 | |||||||
Receivables and unbilled revenue | 133,281 | 118,632 | |||||||
Receivables from affiliates | 540 | 4,074 | |||||||
Other current assets | 19,435 | 16,907 | |||||||
Total current assets | 192,443 | 173,376 | |||||||
Other assets: | |||||||||
Regulatory assets | 377,962 | 349,414 | |||||||
Investments in affiliates | 0 | 0 | |||||||
Long-term affiliate notes receivable | 0 | 0 | |||||||
Other assets | 80,480 | 58,959 | |||||||
Total other assets | 458,442 | 408,373 | |||||||
TOTAL ASSETS | 2,840,870 | 2,665,114 | |||||||
Capitalization: | |||||||||
Common stockholders’ equity | 679,037 | 659,340 | |||||||
Affiliate long-term debt | 0 | 0 | |||||||
Long-term debt, net | 807,019 | 709,444 | |||||||
Total capitalization | 1,486,056 | 1,368,784 | |||||||
Current liabilities: | |||||||||
Current maturities of long-term debt, net | 5,122 | 104,664 | |||||||
Short-term borrowings | 100,000 | 10,000 | |||||||
Payables to affiliates | 4,906 | 488 | |||||||
Accounts payable | 103,748 | 92,310 | |||||||
Accrued expenses and other liabilities | 60,621 | 53,655 | |||||||
Total current liabilities | 274,397 | 261,117 | |||||||
Unamortized investment tax credits | 1,649 | 1,649 | |||||||
Deferred income taxes | 224,549 | 210,052 | |||||||
Pension and postretirement benefits other than pensions | 203,557 | 193,538 | |||||||
Regulatory liabilities and other | 253,843 | 250,720 | |||||||
Advances for construction | 189,781 | 185,843 | |||||||
Contributions in aid of construction | 207,038 | 193,411 | |||||||
TOTAL CAPITALIZATION AND LIABILITIES | 2,840,870 | 2,665,114 | |||||||
All Other Subsidiaries | Reportable Legal Entities | |||||||||
Utility plant: | |||||||||
Utility plant | 222,726 | 213,888 | |||||||
Less accumulated depreciation and amortization | (64,654) | (59,735) | |||||||
Net utility plant | 158,072 | 154,153 | |||||||
Current assets: | |||||||||
Cash and cash equivalents | 9,662 | 9,634 | |||||||
Receivables and unbilled revenue | 5,319 | 4,201 | |||||||
Receivables from affiliates | 214 | 61 | |||||||
Other current assets | 2,529 | 1,580 | |||||||
Total current assets | 17,724 | 15,476 | |||||||
Other assets: | |||||||||
Regulatory assets | 4,522 | 4,155 | |||||||
Investments in affiliates | 0 | 0 | |||||||
Long-term affiliate notes receivable | 0 | 0 | |||||||
Other assets | 4,692 | 3,821 | |||||||
Total other assets | 9,214 | 7,976 | |||||||
TOTAL ASSETS | 185,010 | 177,605 | |||||||
Capitalization: | |||||||||
Common stockholders’ equity | 82,366 | 79,093 | |||||||
Affiliate long-term debt | 26,288 | 27,828 | |||||||
Long-term debt, net | 459 | 583 | |||||||
Total capitalization | 109,113 | 107,504 | |||||||
Current liabilities: | |||||||||
Current maturities of long-term debt, net | 158 | 247 | |||||||
Short-term borrowings | 0 | 0 | |||||||
Payables to affiliates | 24,744 | 24,948 | |||||||
Accounts payable | 4,845 | 3,270 | |||||||
Accrued expenses and other liabilities | 4,021 | 1,813 | |||||||
Total current liabilities | 33,768 | 30,278 | |||||||
Unamortized investment tax credits | 0 | 0 | |||||||
Deferred income taxes | 3,213 | 1,648 | |||||||
Pension and postretirement benefits other than pensions | 0 | 0 | |||||||
Regulatory liabilities and other | 6,953 | 5,817 | |||||||
Advances for construction | 491 | 499 | |||||||
Contributions in aid of construction | 31,472 | 31,859 | |||||||
TOTAL CAPITALIZATION AND LIABILITIES | $ 185,010 | $ 177,605 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Consolidating Financial Statements | ||||||||
Operating revenue | $ 232,537 | $ 221,288 | $ 537,679 | $ 530,779 | ||||
Operations: | ||||||||
Water production costs | 80,568 | 78,818 | 190,795 | 191,797 | ||||
Administrative and general | 26,779 | 26,493 | 81,310 | 77,195 | ||||
Other operations | 24,550 | 21,943 | 64,913 | 60,307 | ||||
Maintenance | 7,065 | 6,768 | 19,212 | 17,596 | ||||
Depreciation and amortization | 22,273 | 21,009 | 66,967 | 62,677 | ||||
Income tax (benefit) expense | 12,194 | 11,786 | 13,524 | 16,950 | ||||
Property and other taxes | 7,541 | 7,142 | 21,902 | 20,253 | ||||
Total operating (income) expenses | 180,970 | 173,959 | 458,623 | 446,775 | ||||
Net operating income | 51,567 | 47,329 | 79,056 | 84,004 | ||||
Other income and expenses: | ||||||||
Non-regulated revenue | 4,118 | 4,703 | 14,149 | 13,967 | ||||
Non-regulated expenses | (4,351) | (4,897) | (10,470) | (16,449) | ||||
Other components of net periodic benefit cost | (1,857) | (1,975) | (4,308) | (6,984) | ||||
Allowance for equity funds used during construction | 1,868 | 1,023 | 5,087 | 2,644 | ||||
Income tax benefit on other income and expenses | 330 | 305 | (985) | 1,882 | ||||
Net other income (loss) | 108 | (841) | 3,473 | (4,940) | ||||
Interest expense: | ||||||||
Interest expense | 10,279 | 10,875 | 33,532 | 30,207 | ||||
Allowance for borrowed funds used during construction | (1,028) | (560) | (2,783) | (1,359) | ||||
Net interest expense | 9,251 | 10,315 | 30,749 | 28,848 | ||||
Equity earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income | 42,424 | $ 16,996 | $ (7,640) | 36,173 | $ 14,805 | $ (762) | 51,780 | 50,216 |
Consolidating Adjustments | ||||||||
Condensed Consolidating Financial Statements | ||||||||
Operating revenue | 0 | 0 | 0 | 0 | ||||
Operations: | ||||||||
Water production costs | 0 | 0 | 0 | 0 | ||||
Administrative and general | 0 | 0 | 0 | 0 | ||||
Other operations | (147) | (144) | (437) | (436) | ||||
Maintenance | 0 | 0 | 0 | 0 | ||||
Depreciation and amortization | (21) | (22) | (62) | (65) | ||||
Income tax (benefit) expense | 215 | 222 | 651 | 620 | ||||
Property and other taxes | 0 | 0 | 0 | 0 | ||||
Total operating (income) expenses | 47 | 56 | 152 | 119 | ||||
Net operating income | (47) | (56) | (152) | (119) | ||||
Other income and expenses: | ||||||||
Non-regulated revenue | (745) | (773) | (2,263) | (2,152) | ||||
Non-regulated expenses | 0 | 0 | 0 | 0 | ||||
Other components of net periodic benefit cost | 0 | 0 | 0 | 0 | ||||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 | ||||
Income tax benefit on other income and expenses | 208 | 216 | 633 | 602 | ||||
Net other income (loss) | (537) | (557) | (1,630) | (1,550) | ||||
Interest expense: | ||||||||
Interest expense | (599) | (628) | (1,826) | (1,716) | ||||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | 0 | ||||
Net interest expense | (599) | (628) | (1,826) | (1,716) | ||||
Equity earnings of subsidiaries | (42,334) | (36,088) | (51,523) | (49,863) | ||||
Net income | (42,319) | (36,073) | (51,479) | (49,816) | ||||
Parent Company | Reportable Legal Entities | ||||||||
Condensed Consolidating Financial Statements | ||||||||
Operating revenue | 0 | 0 | 0 | 0 | ||||
Operations: | ||||||||
Water production costs | 0 | 0 | 0 | 0 | ||||
Administrative and general | 0 | 0 | 23 | 0 | ||||
Other operations | 0 | 0 | 0 | 0 | ||||
Maintenance | 0 | 0 | 0 | 0 | ||||
Depreciation and amortization | 23 | 23 | 70 | 70 | ||||
Income tax (benefit) expense | (132) | (142) | (411) | (342) | ||||
Property and other taxes | 0 | 0 | 0 | 0 | ||||
Total operating (income) expenses | (109) | (119) | (318) | (272) | ||||
Net operating income | 109 | 119 | 318 | 272 | ||||
Other income and expenses: | ||||||||
Non-regulated revenue | 599 | 628 | 1,826 | 1,716 | ||||
Non-regulated expenses | 0 | 0 | 0 | 0 | ||||
Other components of net periodic benefit cost | 0 | 0 | 0 | 0 | ||||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 | ||||
Income tax benefit on other income and expenses | (168) | (176) | (511) | (480) | ||||
Net other income (loss) | 431 | 452 | 1,315 | 1,236 | ||||
Interest expense: | ||||||||
Interest expense | 450 | 486 | 1,376 | 1,155 | ||||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | 0 | ||||
Net interest expense | 450 | 486 | 1,376 | 1,155 | ||||
Equity earnings of subsidiaries | 42,334 | 36,088 | 51,523 | 49,863 | ||||
Net income | 42,424 | 36,173 | 51,780 | 50,216 | ||||
Cal Water | Reportable Legal Entities | ||||||||
Condensed Consolidating Financial Statements | ||||||||
Operating revenue | 219,261 | 208,695 | 502,785 | 499,173 | ||||
Operations: | ||||||||
Water production costs | 78,048 | 76,317 | 183,617 | 185,149 | ||||
Administrative and general | 24,498 | 23,878 | 73,908 | 69,531 | ||||
Other operations | 22,872 | 20,271 | 59,851 | 55,626 | ||||
Maintenance | 6,823 | 6,538 | 18,469 | 16,974 | ||||
Depreciation and amortization | 20,770 | 19,632 | 62,471 | 58,909 | ||||
Income tax (benefit) expense | 11,332 | 10,435 | 12,019 | 15,081 | ||||
Property and other taxes | 6,620 | 6,205 | 19,431 | 17,894 | ||||
Total operating (income) expenses | 170,963 | 163,276 | 429,766 | 419,164 | ||||
Net operating income | 48,298 | 45,419 | 73,019 | 80,009 | ||||
Other income and expenses: | ||||||||
Non-regulated revenue | 3,865 | 4,589 | 13,374 | 13,572 | ||||
Non-regulated expenses | (3,907) | (4,675) | (9,610) | (15,943) | ||||
Other components of net periodic benefit cost | (1,784) | (1,834) | (4,177) | (6,618) | ||||
Allowance for equity funds used during construction | 1,868 | 1,023 | 5,087 | 2,644 | ||||
Income tax benefit on other income and expenses | 268 | 252 | (1,028) | 1,776 | ||||
Net other income (loss) | 310 | (645) | 3,646 | (4,569) | ||||
Interest expense: | ||||||||
Interest expense | 9,820 | 10,443 | 32,141 | 29,095 | ||||
Allowance for borrowed funds used during construction | (954) | (522) | (2,592) | (1,250) | ||||
Net interest expense | 8,866 | 9,921 | 29,549 | 27,845 | ||||
Equity earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income | 39,742 | 34,853 | 47,116 | 47,595 | ||||
All Other Subsidiaries | Reportable Legal Entities | ||||||||
Condensed Consolidating Financial Statements | ||||||||
Operating revenue | 13,276 | 12,593 | 34,894 | 31,606 | ||||
Operations: | ||||||||
Water production costs | 2,520 | 2,501 | 7,178 | 6,648 | ||||
Administrative and general | 2,281 | 2,615 | 7,379 | 7,664 | ||||
Other operations | 1,825 | 1,816 | 5,499 | 5,117 | ||||
Maintenance | 242 | 230 | 743 | 622 | ||||
Depreciation and amortization | 1,501 | 1,376 | 4,488 | 3,763 | ||||
Income tax (benefit) expense | 779 | 1,271 | 1,265 | 1,591 | ||||
Property and other taxes | 921 | 937 | 2,471 | 2,359 | ||||
Total operating (income) expenses | 10,069 | 10,746 | 29,023 | 27,764 | ||||
Net operating income | 3,207 | 1,847 | 5,871 | 3,842 | ||||
Other income and expenses: | ||||||||
Non-regulated revenue | 399 | 259 | 1,212 | 831 | ||||
Non-regulated expenses | (444) | (222) | (860) | (506) | ||||
Other components of net periodic benefit cost | (73) | (141) | (131) | (366) | ||||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 | ||||
Income tax benefit on other income and expenses | 22 | 13 | (79) | (16) | ||||
Net other income (loss) | (96) | (91) | 142 | (57) | ||||
Interest expense: | ||||||||
Interest expense | 608 | 574 | 1,841 | 1,673 | ||||
Allowance for borrowed funds used during construction | (74) | (38) | (191) | (109) | ||||
Net interest expense | 534 | 536 | 1,650 | 1,564 | ||||
Equity earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income | $ 2,577 | $ 1,220 | $ 4,363 | $ 2,221 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities: | ||||||||
Net income | $ 42,424 | $ 16,996 | $ (7,640) | $ 36,173 | $ 14,805 | $ (762) | $ 51,780 | $ 50,216 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Equity earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Dividends received from affiliates | 0 | 0 | ||||||
Depreciation and amortization | 68,522 | 64,131 | ||||||
Change in value of life insurance contracts | (3,433) | 124 | ||||||
Allowance for equity funds used during construction | (1,868) | (1,023) | (5,087) | (2,644) | ||||
Changes in operating assets and liabilities: | ||||||||
Changes in operating assets and liabilities | (5,041) | 7,032 | ||||||
Other changes in noncurrent assets and liabilities | 21,602 | 644 | ||||||
Net cash provided by operating activities | 128,343 | 119,503 | ||||||
Investing activities: | ||||||||
Utility plant expenditures | (194,942) | (212,856) | ||||||
Changes in affiliate advances | 0 | 0 | ||||||
Issuance of affiliate short-term borrowings | 0 | 0 | ||||||
Reduction of affiliates long-term debt | 0 | 0 | ||||||
Life insurance proceeds | 0 | 3,491 | ||||||
Purchase of life insurance contracts | (2,216) | (4,925) | ||||||
Net cash used in investing activities | (197,158) | (214,290) | ||||||
Financing Activities: | ||||||||
Short-term borrowings | 210,000 | 141,000 | ||||||
Repayment of short-term borrowings | (120,000) | (341,000) | ||||||
Changes in affiliate advances | 0 | 0 | ||||||
Proceeds from affiliate short-term borrowings | 0 | 0 | ||||||
Repayment of affiliates long-term borrowings | 0 | 0 | ||||||
Issuance of long term debt, net of expenses | 398,431 | 299,383 | ||||||
Repayment of long-term debt | (401,630) | (12,499) | ||||||
Advances and contributions in aid of construction | 21,266 | 13,630 | ||||||
Refunds of advances for construction | (5,560) | (5,462) | ||||||
Repurchase of common stock | (2,355) | (1,496) | ||||||
Issuance of common stock | 1,278 | 0 | ||||||
Dividends paid to non-affiliates | (28,507) | (27,029) | ||||||
Dividends paid to affiliates | 0 | 0 | ||||||
Net cash provided by financing activities | 72,923 | 66,527 | ||||||
Change in cash, cash equivalents, and restricted cash | 4,108 | (28,260) | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | 47,715 | 95,352 | 47,715 | 95,352 | ||||
Cash, cash equivalents, and restricted cash at end of period | 51,823 | 67,092 | 51,823 | 67,092 | ||||
Consolidating Adjustments | ||||||||
Operating activities: | ||||||||
Net income | (42,319) | (36,073) | (51,479) | (49,816) | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Equity earnings of subsidiaries | 42,334 | 36,088 | 51,523 | 49,863 | ||||
Dividends received from affiliates | (28,507) | (27,029) | ||||||
Depreciation and amortization | (62) | (65) | ||||||
Change in value of life insurance contracts | 0 | 0 | ||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 | ||||
Changes in operating assets and liabilities: | ||||||||
Changes in operating assets and liabilities | 0 | 0 | ||||||
Other changes in noncurrent assets and liabilities | 18 | 18 | ||||||
Net cash provided by operating activities | (28,507) | (27,029) | ||||||
Investing activities: | ||||||||
Utility plant expenditures | 0 | 0 | ||||||
Changes in affiliate advances | (15) | (1,954) | ||||||
Issuance of affiliate short-term borrowings | 4,300 | 23,700 | ||||||
Reduction of affiliates long-term debt | (1,462) | (1,224) | ||||||
Life insurance proceeds | 0 | |||||||
Purchase of life insurance contracts | 0 | 0 | ||||||
Net cash used in investing activities | 2,823 | 20,522 | ||||||
Financing Activities: | ||||||||
Short-term borrowings | 0 | 0 | ||||||
Repayment of short-term borrowings | 0 | 0 | ||||||
Changes in affiliate advances | 15 | 1,954 | ||||||
Proceeds from affiliate short-term borrowings | (4,300) | (23,700) | ||||||
Repayment of affiliates long-term borrowings | 1,462 | 1,224 | ||||||
Issuance of long term debt, net of expenses | 0 | 0 | ||||||
Repayment of long-term debt | 0 | 0 | ||||||
Advances and contributions in aid of construction | 0 | 0 | ||||||
Refunds of advances for construction | 0 | 0 | ||||||
Repurchase of common stock | 0 | 0 | ||||||
Issuance of common stock | 0 | |||||||
Dividends paid to non-affiliates | 0 | 0 | ||||||
Dividends paid to affiliates | 28,507 | 27,029 | ||||||
Net cash provided by financing activities | 25,684 | 6,507 | ||||||
Change in cash, cash equivalents, and restricted cash | 0 | 0 | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | 0 | 0 | 0 | 0 | ||||
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 | 0 | 0 | ||||
Parent Company | Reportable Legal Entities | ||||||||
Operating activities: | ||||||||
Net income | 42,424 | 36,173 | 51,780 | 50,216 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Equity earnings of subsidiaries | (42,334) | (36,088) | (51,523) | (49,863) | ||||
Dividends received from affiliates | 28,507 | 27,029 | ||||||
Depreciation and amortization | 70 | 70 | ||||||
Change in value of life insurance contracts | 0 | 0 | ||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 | ||||
Changes in operating assets and liabilities: | ||||||||
Changes in operating assets and liabilities | 194 | (281) | ||||||
Other changes in noncurrent assets and liabilities | 5,239 | 2,518 | ||||||
Net cash provided by operating activities | 34,267 | 29,689 | ||||||
Investing activities: | ||||||||
Utility plant expenditures | 0 | 4 | ||||||
Changes in affiliate advances | (3,199) | (975) | ||||||
Issuance of affiliate short-term borrowings | (4,300) | (23,700) | ||||||
Reduction of affiliates long-term debt | 1,462 | 1,224 | ||||||
Life insurance proceeds | 0 | |||||||
Purchase of life insurance contracts | 0 | 0 | ||||||
Net cash used in investing activities | (6,037) | (23,447) | ||||||
Financing Activities: | ||||||||
Short-term borrowings | 0 | 20,000 | ||||||
Repayment of short-term borrowings | 0 | 0 | ||||||
Changes in affiliate advances | (17) | 0 | ||||||
Proceeds from affiliate short-term borrowings | 0 | 0 | ||||||
Repayment of affiliates long-term borrowings | 0 | 0 | ||||||
Issuance of long term debt, net of expenses | 0 | 0 | ||||||
Repayment of long-term debt | 0 | 0 | ||||||
Advances and contributions in aid of construction | 0 | 0 | ||||||
Refunds of advances for construction | 0 | 0 | ||||||
Repurchase of common stock | (2,355) | (1,496) | ||||||
Issuance of common stock | 1,278 | |||||||
Dividends paid to non-affiliates | (28,507) | (27,029) | ||||||
Dividends paid to affiliates | 0 | 0 | ||||||
Net cash provided by financing activities | (29,601) | (8,525) | ||||||
Change in cash, cash equivalents, and restricted cash | (1,371) | (2,283) | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | 3,779 | 4,728 | 3,779 | 4,728 | ||||
Cash, cash equivalents, and restricted cash at end of period | 2,408 | 2,445 | 2,408 | 2,445 | ||||
Cal Water | Reportable Legal Entities | ||||||||
Operating activities: | ||||||||
Net income | 39,742 | 34,853 | 47,116 | 47,595 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Equity earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Dividends received from affiliates | 0 | 0 | ||||||
Depreciation and amortization | 63,975 | 60,298 | ||||||
Change in value of life insurance contracts | (3,433) | 124 | ||||||
Allowance for equity funds used during construction | (1,868) | (1,023) | (5,087) | (2,644) | ||||
Changes in operating assets and liabilities: | ||||||||
Changes in operating assets and liabilities | (6,744) | 6,135 | ||||||
Other changes in noncurrent assets and liabilities | 14,560 | (3,881) | ||||||
Net cash provided by operating activities | 110,387 | 107,627 | ||||||
Investing activities: | ||||||||
Utility plant expenditures | (185,883) | (205,218) | ||||||
Changes in affiliate advances | 3,534 | 3,198 | ||||||
Issuance of affiliate short-term borrowings | 0 | 0 | ||||||
Reduction of affiliates long-term debt | 0 | 0 | ||||||
Life insurance proceeds | 3,491 | |||||||
Purchase of life insurance contracts | (2,216) | (4,925) | ||||||
Net cash used in investing activities | (184,565) | (203,454) | ||||||
Financing Activities: | ||||||||
Short-term borrowings | 210,000 | 121,000 | ||||||
Repayment of short-term borrowings | (120,000) | (341,000) | ||||||
Changes in affiliate advances | 4,419 | 1,129 | ||||||
Proceeds from affiliate short-term borrowings | 0 | 20,000 | ||||||
Repayment of affiliates long-term borrowings | 0 | 0 | ||||||
Issuance of long term debt, net of expenses | 398,431 | 299,383 | ||||||
Repayment of long-term debt | (401,417) | (12,299) | ||||||
Advances and contributions in aid of construction | 21,176 | 13,288 | ||||||
Refunds of advances for construction | (5,560) | (5,452) | ||||||
Repurchase of common stock | 0 | 0 | ||||||
Issuance of common stock | 0 | |||||||
Dividends paid to non-affiliates | 0 | 0 | ||||||
Dividends paid to affiliates | (27,419) | (25,959) | ||||||
Net cash provided by financing activities | 79,630 | 70,090 | ||||||
Change in cash, cash equivalents, and restricted cash | 5,452 | (25,737) | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | 34,238 | 81,453 | 34,238 | 81,453 | ||||
Cash, cash equivalents, and restricted cash at end of period | 39,690 | 55,716 | 39,690 | 55,716 | ||||
All Other Subsidiaries | Reportable Legal Entities | ||||||||
Operating activities: | ||||||||
Net income | 2,577 | 1,220 | 4,363 | 2,221 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Equity earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Dividends received from affiliates | 0 | 0 | ||||||
Depreciation and amortization | 4,539 | 3,828 | ||||||
Change in value of life insurance contracts | 0 | 0 | ||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | 0 | ||||
Changes in operating assets and liabilities: | ||||||||
Changes in operating assets and liabilities | 1,509 | 1,178 | ||||||
Other changes in noncurrent assets and liabilities | 1,785 | 1,989 | ||||||
Net cash provided by operating activities | 12,196 | 9,216 | ||||||
Investing activities: | ||||||||
Utility plant expenditures | (9,059) | (7,642) | ||||||
Changes in affiliate advances | (320) | (269) | ||||||
Issuance of affiliate short-term borrowings | 0 | 0 | ||||||
Reduction of affiliates long-term debt | 0 | 0 | ||||||
Life insurance proceeds | 0 | |||||||
Purchase of life insurance contracts | 0 | 0 | ||||||
Net cash used in investing activities | (9,379) | (7,911) | ||||||
Financing Activities: | ||||||||
Short-term borrowings | 0 | 0 | ||||||
Repayment of short-term borrowings | 0 | 0 | ||||||
Changes in affiliate advances | (4,417) | (3,083) | ||||||
Proceeds from affiliate short-term borrowings | 4,300 | 3,700 | ||||||
Repayment of affiliates long-term borrowings | (1,462) | (1,224) | ||||||
Issuance of long term debt, net of expenses | 0 | 0 | ||||||
Repayment of long-term debt | (213) | (200) | ||||||
Advances and contributions in aid of construction | 90 | 342 | ||||||
Refunds of advances for construction | 0 | (10) | ||||||
Repurchase of common stock | 0 | 0 | ||||||
Issuance of common stock | 0 | |||||||
Dividends paid to non-affiliates | 0 | 0 | ||||||
Dividends paid to affiliates | (1,088) | (1,070) | ||||||
Net cash provided by financing activities | (2,790) | (1,545) | ||||||
Change in cash, cash equivalents, and restricted cash | 27 | (240) | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | $ 9,698 | $ 9,171 | 9,698 | 9,171 | ||||
Cash, cash equivalents, and restricted cash at end of period | $ 9,725 | $ 8,931 | $ 9,725 | $ 8,931 |
Immaterial Restatement of Pri_3
Immaterial Restatement of Prior Period Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Operating revenue | $ 232,537 | $ 221,288 | $ 537,679 | $ 530,779 | |||||||
Operating expenses: | |||||||||||
Income taxes | 12,194 | 11,786 | 13,524 | 16,950 | |||||||
Total operating expenses | 173,959 | 446,775 | |||||||||
Net operating income | 51,567 | 47,329 | 79,056 | 84,004 | |||||||
Net income | $ 42,424 | $ 16,996 | $ (7,640) | $ 36,173 | $ 14,805 | $ (762) | $ 51,780 | $ 50,216 | |||
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 0.88 | $ 0.75 | $ 1.08 | $ 1.04 | |||||||
Diluted (in dollars per share) | $ 0.88 | $ 0.75 | $ 1.08 | $ 1.04 | |||||||
Retained earnings | $ 415,326 | $ 385,699 | 358,538 | 352,747 | $ 415,326 | $ 385,699 | $ 392,053 | $ 362,512 | |||
Total common stockholders’ equity | 757,795 | 723,164 | 714,129 | 723,140 | 695,257 | 688,853 | 757,795 | 723,140 | $ 730,157 | 699,221 | $ 699,221 |
Operating activities: | |||||||||||
Net income | $ 42,424 | $ 16,996 | $ (7,640) | 36,173 | 14,805 | (762) | 51,780 | 50,216 | |||
Other changes in noncurrent assets and liabilities | 21,602 | 644 | |||||||||
Net cash provided by operating activities | $ 128,343 | 119,503 | |||||||||
Corrections | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Operating revenue | 2,305 | 6,917 | |||||||||
Operating expenses: | |||||||||||
Income taxes | 524 | 1,570 | |||||||||
Total operating expenses | 524 | 1,570 | |||||||||
Net operating income | 1,781 | 5,347 | |||||||||
Net income | $ 1,781 | $ 5,347 | |||||||||
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 0.03 | $ 0.11 | |||||||||
Diluted (in dollars per share) | $ 0.03 | $ 0.11 | |||||||||
Retained earnings | $ 11,106 | 9,325 | 7,542 | $ 11,106 | 5,759 | ||||||
Total common stockholders’ equity | 11,106 | 9,325 | 7,542 | 11,106 | 5,759 | ||||||
Operating activities: | |||||||||||
Net income | 1,781 | 5,347 | |||||||||
Other changes in noncurrent assets and liabilities | (5,347) | ||||||||||
Net cash provided by operating activities | 0 | ||||||||||
As Previously Reported | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Operating revenue | 218,983 | 523,862 | |||||||||
Operating expenses: | |||||||||||
Income taxes | 11,262 | 15,380 | |||||||||
Total operating expenses | 173,435 | 445,205 | |||||||||
Net operating income | 45,548 | 78,657 | |||||||||
Net income | $ 34,392 | $ 44,869 | |||||||||
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 0.72 | $ 0.93 | |||||||||
Diluted (in dollars per share) | $ 0.72 | $ 0.93 | |||||||||
Retained earnings | $ 374,593 | 349,213 | 345,205 | $ 374,593 | 356,753 | ||||||
Total common stockholders’ equity | 712,034 | $ 685,932 | $ 681,311 | 712,034 | $ 693,462 | ||||||
Operating activities: | |||||||||||
Net income | $ 34,392 | 44,869 | |||||||||
Other changes in noncurrent assets and liabilities | 5,991 | ||||||||||
Net cash provided by operating activities | $ 119,503 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event $ in Millions | Oct. 08, 2019USD ($) |
Subsequent Event [Line Items] | |
Current projects amount | $ 200 |
Advice letter authorizations | $ 148 |
Water main replacement rate | 0.76% |
Minimum | |
Subsequent Event [Line Items] | |
New projects amount | $ 609 |
Capital investments | 809 |
Maximum | |
Subsequent Event [Line Items] | |
New projects amount | 628 |
Capital investments | $ 828 |