Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 28, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'CALIFORNIA WATER SERVICE GROUP | ' |
Entity Central Index Key | '0001035201 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 47,806,190 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Utility plant: | ' | ' |
Utility plant | $2,306,427 | $2,213,328 |
Less accumulated depreciation and amortization | -745,742 | -697,497 |
Net utility plant | 1,560,685 | 1,515,831 |
Current assets: | ' | ' |
Cash and cash equivalents | 29,485 | 27,506 |
Receivables: | ' | ' |
Customers | 37,070 | 31,468 |
Regulatory balancing accounts | 45,073 | 30,887 |
Other | 15,759 | 18,700 |
Unbilled revenue | 29,489 | 17,034 |
Materials and supplies at weighted average cost | 5,912 | 5,571 |
Taxes, prepaid expenses and other assets | 14,490 | 8,324 |
Total current assets | 177,278 | 139,490 |
Other assets: | ' | ' |
Regulatory assets | 277,476 | 251,681 |
Goodwill | 2,615 | 2,615 |
Other assets | 51,026 | 50,238 |
Total other assets | 331,117 | 304,534 |
Total assets | 2,069,080 | 1,959,855 |
Capitalization: | ' | ' |
Common stock, $.01 par value; 68,000,000 shares authorized, 47,806,000 and 47,741,000 outstanding in 2014 and 2013, respectively | 478 | 477 |
Additional paid-in capital | 329,840 | 328,364 |
Retained earnings | 291,964 | 269,915 |
Total common stockholders' equity | 622,282 | 598,756 |
Long-term debt, less current maturities | 422,825 | 426,142 |
Total capitalization | 1,045,107 | 1,024,898 |
Current liabilities: | ' | ' |
Current maturities of long-term debt | 6,619 | 7,908 |
Short-term borrowings | 61,715 | 46,815 |
Accounts payable | 71,867 | 55,087 |
Regulatory balancing accounts | 6,791 | 1,827 |
Accrued interest | 9,748 | 4,245 |
Accrued expenses and other liabilities | 58,674 | 50,702 |
Total current liabilities | 215,414 | 166,584 |
Unamortized investment tax credits | 2,106 | 2,106 |
Deferred income taxes, net | 210,357 | 183,245 |
Pension and postretirement benefits other than pensions | 153,085 | 145,451 |
Regulatory and other liabilities | 91,713 | 86,455 |
Advances for construction | 182,172 | 183,393 |
Contributions in aid of construction | 169,126 | 167,723 |
Commitments and contingencies (Note 10) | ' | ' |
Total capitalization and liabilities | $2,069,080 | $1,959,855 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 68,000,000 | 68,000,000 |
Common stock, shares outstanding | 47,806,000 | 47,741,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ' | ' | ' | ' |
Operating revenue | $191,184 | $184,404 | $460,115 | $450,403 |
Operations: | ' | ' | ' | ' |
Water production costs | 66,980 | 70,614 | 174,297 | 171,956 |
Administrative and general | 23,765 | 24,670 | 72,702 | 73,106 |
Other operations | 15,692 | 17,657 | 48,072 | 50,332 |
Maintenance | 4,800 | 4,575 | 14,793 | 12,896 |
Depreciation and amortization | 14,648 | 14,505 | 46,788 | 43,625 |
Income taxes | 19,233 | 11,165 | 22,584 | 19,567 |
Property and other taxes | 5,232 | 5,414 | 15,601 | 16,564 |
Total operating expenses | 150,350 | 148,600 | 394,837 | 388,046 |
Net operating income | 40,834 | 35,804 | 65,278 | 62,357 |
Other income and expenses: | ' | ' | ' | ' |
Non-regulated revenue | 4,409 | 3,649 | 12,163 | 10,386 |
Non-regulated expenses, net | -4,812 | -2,825 | -11,184 | -8,482 |
Income tax benefit (expense) on other income and expenses | 169 | -330 | -391 | -765 |
Net other (loss) income | -234 | 494 | 588 | 1,139 |
Interest expense: | ' | ' | ' | ' |
Interest expense | 7,221 | 7,687 | 21,373 | 23,527 |
Less: capitalized interest | -271 | -540 | -851 | -1,619 |
Net interest expense | 6,950 | 7,147 | 20,522 | 21,908 |
Net Income | $33,650 | $29,151 | $45,344 | $41,588 |
Earnings per share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.70 | $0.61 | $0.95 | $0.91 |
Diluted (in dollars per share) | $0.70 | $0.61 | $0.95 | $0.90 |
Weighted average shares outstanding | ' | ' | ' | ' |
Basic (in shares) | 47,803 | 47,737 | 47,787 | 45,927 |
Diluted (in shares) | 47,840 | 47,770 | 47,825 | 45,957 |
Dividends declared per share of common stock (in dollars per share) | $0.16 | $0.16 | $0.49 | $0.48 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities | ' | ' |
Net income | $45,344 | $41,588 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 48,481 | 45,067 |
Changes in value of life insurance contracts | -501 | -1,147 |
Changes in operating assets and liabilities: | ' | ' |
Receivables | -13,781 | -24,636 |
Accounts payable | 7,239 | 7,719 |
Other current assets | -6,859 | -751 |
Other current liabilities | 6,904 | 20,558 |
Other changes in noncurrent assets and liabilities | 13,340 | 13,501 |
Net cash provided by operating activities | 100,167 | 101,899 |
Investing activities: | ' | ' |
Utility plant expenditures | -86,258 | -94,782 |
Purchase of life insurance contracts | -3,207 | -3,204 |
Changes in restricted cash and other changes | 354 | 1,148 |
Net cash used in investing activities | -89,111 | -96,838 |
Financing activities: | ' | ' |
Short-term borrowings | 99,900 | 35,315 |
Repayment of short-term borrowings | -85,000 | -113,275 |
Proceeds from long-term debt | ' | 48 |
Repayment of long-term debt | -4,604 | -3,058 |
Advances and contributions in aid of construction | 8,780 | 7,577 |
Refunds of advances for construction | -4,858 | -5,230 |
Issuance of common stock | ' | 110,688 |
Common stock issuance costs | ' | -5,088 |
Dividends paid | -23,295 | -21,981 |
Net cash (used in) provided by financing activities | -9,077 | 4,996 |
Change in cash and cash equivalents | 1,979 | 10,057 |
Cash and cash equivalents at beginning of period | 27,506 | 38,790 |
Cash and cash equivalents at end of period | 29,485 | 48,847 |
Supplemental information | ' | ' |
Cash paid for interest (net of amounts capitalized) | 14,102 | 15,141 |
Income tax refunds | -6,000 | ' |
Supplemental disclosure of non-cash activities: | ' | ' |
Accrued payables for investments in utility plant | 16,308 | 11,739 |
Utility plant contribution by developers | $8,148 | $10,196 |
Organization_and_Operations_an
Organization and Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Organization and Operations and Basis of Presentation | ' |
Organization and Operations and Basis of Presentation | ' |
Note 1. 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 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 condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2013, included in its annual report on Form 10-K as filed with the SEC on February 27, 2014. | |
The preparation of the Company’s condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the 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 condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals that are necessary to provide a fair presentation of the results for the periods covered. The results for interim periods are not necessarily indicative of the results for any future period. | |
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_Account
Summary of Significant Accounting Policies | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Summary of Significant Accounting Policies | ' | |||||||
Note 2. Summary of Significant Accounting Policies | ||||||||
Revenue | ||||||||
Revenue generally includes monthly cycle customer billings for regulated water and wastewater services at rates authorized by regulatory commissions (plus an estimate for water used between the customer’s last meter reading and the end of the accounting period) and billings to certain non-regulated customers at rates authorized by contract with government agencies. | ||||||||
The Company’s regulated water and waste water revenue requirements are authorized by the Commissions in the states in which it operates. The revenue requirements are intended to provide the Company an opportunity to recover its operating costs and earn a reasonable return on investments. | ||||||||
For metered customers, Cal Water recognizes revenue from rates which are designed and authorized by the California Public Utilities Commission (CPUC). Under the Water Revenue Adjustment Mechanism (WRAM), Cal Water records the adopted level of volumetric revenues, which would include recovery of cost of service and a return on investments, as established by the CPUC for metered accounts (adopted volumetric revenues). In addition to volumetric-based revenues, the revenue requirements approved by the CPUC include service charges, flat rate charges, and other items not subject to the WRAM. The adopted volumetric revenue considers the seasonality of consumption of water based upon historical averages. The variance between adopted volumetric revenues and actual billed volumetric revenues for metered accounts is recorded as a component of revenue with an offsetting entry to a regulatory asset or liability balancing account (tracked individually for each Cal Water district) subject to certain criteria under the accounting for regulated operations being met. The variance amount may be positive or negative and represents amounts that will be billed or refunded to customers in the future. | ||||||||
Cost-recovery rates are designed to permit full recovery of certain costs. Cost-recovery rates such as the Modified Cost Balancing Account (MCBA) provides for recovery of adopted expense levels for purchased water, purchased power and pump taxes, as established by the CPUC. In addition, cost-recovery rates include recovery of cost related to water conservation programs and certain other operation expenses adopted by the CPUC. There is no markup for return or profit for cost-recovery expenses and are generally recognized when expenses are incurred. Variances (which include the effects of changes in both rate and volume for the MCBA) between adopted and actual costs are recorded as a component of revenue, as the amount of such variances will be recovered from or refunded to Cal Water customers at a later date. The variance between adopted costs and actual costs for metered accounts is recorded as a component of revenue with an offsetting entry to a regulatory asset or liability balancing account (transferred individually for each Cal Water District) subject to certain criteria under the accounting for regulated operations being met. | ||||||||
The balances in the WRAM and MCBA assets and liabilities accounts will fluctuate on a monthly basis depending upon the variance between adopted and actual results. The recovery or refund of the WRAM is netted against the MCBA over- or under-recovery for the corresponding district and is interest bearing at the current 90 day commercial paper rate. At the end of any calendar year, Cal Water files with the CPUC to refund or collect the balance in the accounts. Most undercollected net WRAM and MCBA receivable balances are collected over 12 or 18 months. Cal Water defers net WRAM and MCBA operating revenues and associated costs whenever the net receivable balances are estimated to be collected more than 24 months after the respective reporting periods in which it was recognized. The deferred net WRAM and MCBA revenues and associated costs were determined using forecasts of rate payer consumption trends in future reporting periods and the timing of when the CPUC will authorize Cal Water’s filings to recover the undercollected balances. Deferred net WRAM and MCBA revenues and associated costs will be recognized as revenues and costs in future periods when collection is within twenty-four months of the respective reporting period. | ||||||||
The net WRAM and MCBA balances included in regulatory balancing account, assets, and liabilities were: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Net short-term receivable | $ | 27,927 | $ | 30,887 | ||||
Net long-term receivable | 16,608 | 15,423 | ||||||
Total receivable | $ | 44,535 | $ | 46,310 | ||||
Net short-term payable | $ | 423 | $ | 1,032 | ||||
Net long-term payable | 1,385 | 906 | ||||||
Total payable | $ | 1,808 | $ | 1,938 | ||||
Flat rate customers are billed in advance at the beginning of the service period. The revenue is prorated so that the portion of revenue applicable to the current period is included in that period’s revenue, with the balance recorded as unearned revenue on the balance sheets and recognized as revenue when earned in the subsequent accounting period. The unearned revenue liability was $1.5 million as of September 30, 2014 and as of December 31, 2013. This liability is included in “accrued expenses and other liabilities” on the condensed consolidated balance sheets. | ||||||||
Cash and Cash Equivalents | ||||||||
Cash equivalents include highly liquid investments with maturities of three months or less. Cash and cash equivalents was $29.5 million and $27.5 million as of September 30, 2014 and December 31, 2013, respectively. Restricted cash was included on the condensed consolidated balance sheets as “taxes, prepaid expenses and other assets” and was $0.8 million and $1.2 million as of September 30, 2014 and December 31, 2013, respectively. | ||||||||
Accounting Standards Update | ||||||||
On May 28, 2014 the Financial Accounting Standards Board issued an accounting standards update (ASU) 2014-09, Revenue from Contracts with Customers. This update creates a single, principles based framework for revenue recognition and is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when goods or services are transferred to customers. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements and related disclosures. |
Stockbased_Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2014 | |
Stock-based Compensation | ' |
Stock-based Compensation | ' |
Note 3. Stock-based Compensation | |
Equity Incentive Plan | |
The Company’s equity incentive plan was originally approved by stockholders on April 27, 2005 and again on May 20, 2014. Under the equity incentive plan, the Company is authorized to issue up to 2,000,000 shares of common stock awards as defined in the Plan to employees and directors. | |
The Restricted Stock Awards (RSAs) granted in 2014 and 2013 to employees vest over 36 months. Director RSAs generally vest at the end of 12 months. During the first nine months of 2014, the RSAs granted were valued at $23.61 per share, based upon the fair market value of the Company’s common stock on the date of grant. | |
During the nine months ended September 30, 2014 and 2013, the Company also granted performance-based Restricted Stock Unit Awards (RSUs) of 37,143 shares and 50,267 shares of common stock, respectively, to officers. Each award reflects a target number of shares that may be issued to the award recipient. The 2014 and 2013 awards may be earned upon the completion of the three-year performance period ending on March 4, 2017 and March 5, 2016, respectively. Whether RSUs are earned at the end of the performance period will be determined based on the achievement of certain performance objectives set by the Board of Director Compensation Committee in connection with the issuance of the RSUs. The performance objectives are based on the Company’s business plan covering the performance period. The performance objectives include achieving the budgeted return on equity, budgeted investment in utility plant, customer service standards, water quality standards, and/or safety standards. Depending on the results achieved during the three-year performance period, the actual number of shares that a grant recipient receives at the end of the performance period may range from 0% to 200% of the target shares granted, provided that the grantee is continuously employed by the Company through the vesting date. If, prior to the vesting date, employment is terminated by reason of death, disability or normal retirement, then a pro rata portion of this award will vest. RSUs were not dilutive as of September 30, 2014 and 2013 and will not be included in diluted shares for financial reporting until they are either dilutive or earned. The 2014 and 2013 RSUs are recognized as expense ratably over the three year performance period using a fair market value of $23.61 per share and $20.62 per share, respectively, and an estimate of RSUs earned during the performance period. | |
The Company has recorded compensation costs for the RSAs and RSUs in operating expense in the amount of $1.5 million and $1.3 million for the nine months ended September 30, 2014 and September 30, 2013, respectively. | |
Equity
Equity | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Equity | ' | ||||
Equity | ' | ||||
Note 4. Equity | |||||
The Company’s changes in equity for the nine months ended September 30, 2014 were as follows: | |||||
Total Stockholders’ Equity | |||||
Balance at December 31, 2013 | $ | 598,756 | |||
Common stock issued | 1 | ||||
Share-based compensation expense | 1,476 | ||||
Common stock dividends paid | (23,295 | ) | |||
Net income | 45,344 | ||||
Balance at September 30, 2014 | $ | 622,282 |
Net_Income_Per_Share_Calculati
Net Income Per Share Calculations | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Net Income Per Share Calculations | ' | |||||||
Net Income Per Share Calculations | ' | |||||||
Note 5. Net Income Per Share Calculations | ||||||||
The computations of basic and diluted net income per weighted average common shares are noted below. Basic net income per share is 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. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts were exercised or converted into common stock. | ||||||||
A total of 185,420 shares and 283,856 shares of Stock Appreciation Rights were vested and outstanding and all were dilutive as of September 30, 2014 and September 30, 2013, respectively, as shown in the table below. | ||||||||
Three Months Ended September 30 | ||||||||
2014 | 2013 | |||||||
Net Income available to common stockholders | $ | 33,650 | $ | 29,151 | ||||
Weighted average common shares outstanding, basic (in thousands) | 47,803 | 47,737 | ||||||
Dilutive stock appreciation rights (treasury method) (in thousands) | 37 | 33 | ||||||
Weighted average common shares outstanding, dilutive (in thousands) | 47,840 | 47,770 | ||||||
Net Income per share - basic | $ | 0.7 | $ | 0.61 | ||||
Net Income per share - diluted | $ | 0.7 | $ | 0.61 | ||||
Nine months Ended September 30 | ||||||||
2014 | 2013 | |||||||
Net Income available to common stockholders | $ | 45,344 | $ | 41,588 | ||||
Weighted average common shares outstanding, basic (in thousands) | 47,787 | 45,927 | ||||||
Dilutive stock appreciation rights (treasury method) (in thousands) | 38 | 30 | ||||||
Weighted average common shares outstanding, dilutive (in thousands) | 47,825 | 45,957 | ||||||
Net Income per share - basic | $ | 0.95 | $ | 0.91 | ||||
Net Income per share - diluted | $ | 0.95 | $ | 0.9 |
Pension_Plan_and_Other_Postret
Pension Plan and Other Postretirement Benefits | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Pension Plan and Other Postretirement Benefits | ' | |||||||||||||
Pension Plan and Other Postretirement Benefits | ' | |||||||||||||
Note 6. 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 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 payments by the Company related to pension plans and other postretirement benefit plans was $14.0 million and $2.4 million, respectively, for the nine months ended September 30, 2014 and was $23.4 million to pension plans and $4.7 million to other postretirement benefit plans during the nine months ended September 30, 2013. The 2014 estimated cash contribution to the pension plans is $26.8 million and to the other postretirement benefit plans is $9.6 million. | ||||||||||||||
The following table lists 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 | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Service cost | $ | 3,539 | $ | 4,019 | $ | 1,398 | $ | 1,636 | ||||||
Interest cost | 4,737 | 4,140 | 1,321 | 1,121 | ||||||||||
Expected return on plan assets | (4,091 | ) | (3,559 | ) | (832 | ) | (600 | ) | ||||||
Recognized net initial APBO (1) | N/A | N/A | — | 3 | ||||||||||
Amortization of prior service cost | 1,527 | 1,542 | 11 | 21 | ||||||||||
Recognized net actuarial loss | 1,002 | 2,404 | 656 | 961 | ||||||||||
Net periodic benefit cost | $ | 6,714 | $ | 8,546 | $ | 2,554 | $ | 3,142 | ||||||
Nine months Ended September 30 | ||||||||||||||
Pension Plan | Other Benefits | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Service cost | $ | 11,973 | $ | 13,335 | $ | 4,637 | $ | 5,025 | ||||||
Interest cost | 14,190 | 12,266 | 3,995 | 3,339 | ||||||||||
Expected return on plan assets | (12,449 | ) | (10,689 | ) | (2,339 | ) | (1,796 | ) | ||||||
Recognized net initial APBO (1) | N/A | N/A | — | 7 | ||||||||||
Amortization of prior service cost | 4,547 | 4,624 | 33 | 61 | ||||||||||
Recognized net actuarial loss | 3,008 | 6,852 | 2,206 | 2,794 | ||||||||||
Net periodic benefit cost | $ | 21,269 | $ | 26,388 | $ | 8,532 | $ | 9,430 | ||||||
(1) APBO - Accumulated postretirement benefit obligation |
Shortterm_and_Longterm_Borrowi
Short-term and Long-term Borrowings | 9 Months Ended |
Sep. 30, 2014 | |
Short-term and Long-term Borrowings | ' |
Short-term and Long-term Borrowings | ' |
Note 7. Short-term and Long-term Borrowings | |
On June 29, 2011, the Company and Cal Water entered into Syndicated Credit Agreements, which provide for unsecured revolving credit facilities of up to an initial aggregate amount of $400 million. The Syndicated Credit Facilities amend, expand, and replace the Company’s and its subsidiaries’ credit facilities originally entered into on October 27, 2009. The new credit facilities extended the terms until June 29, 2016, increased the Company’s and Cal Water’s unsecured revolving lines of credit, and lowered interest rates and fees. The Company and subsidiaries that it designates may borrow up to $100 million under the Company’s revolving credit facility. Cal Water may borrow up to $300 million under its revolving credit facility; however, all borrowings need to be repaid within 12-months unless otherwise authorized by the CPUC. The proceeds from the revolving credit facilities may be used for working capital purposes, including the short-term financing of capital projects. The base loan rate may vary from LIBOR plus 72.5 basis points to LIBOR plus 95 basis points, depending on the Company’s total capitalization ratio. Likewise, the unused commitment fee may vary from 8 basis points to 12.5 basis points based on the same 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. | |
As of September 30, 2014 and December 31, 2013, the outstanding borrowings on the Company and Cal Water lines of credit were $61.7 million and $46.8 million, respectively. For the nine months ended September 30, 2014, the average borrowing rate was 1.16% compared to 2.20% for the same period last year. | |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
Note 8. Income Taxes | |
The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Measurement of the deferred tax assets and liabilities is at enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. | |
The Company anticipates that future rate actions by the regulatory commissions will reflect revenue requirements for the tax effects of temporary differences recognized, which have previously been passed through to customers. The regulatory commissions have granted the Company rate increases to reflect the normalization of the tax benefits of the federal accelerated methods and available Investment Tax Credits (ITCs) for all assets placed in service after 1980. ITCs are deferred and amortized over the lives of the related properties for book purposes. | |
During 2012, the Company filed an application for a change in tax accounting method with the IRS to implement tangible property regulations specifically in regards to repairs and maintenance deductions. On September 13, 2013, the U.S. Department of the Treasury and Internal Revenue Service (IRS) issued the final and re-proposed tangible property regulations for repairs and maintenance deductions with an effective date of January 1, 2014. These tax regulations allowed the Company to deduct a significant amount of linear asset costs previously capitalized for book and tax purposes. The Company filed a tax accounting method change on its 2013 tax return for the repair and maintenance of linear assets within the guidance of the tangible property regulations. The Company’s total federal net operating loss (NOL) was $67.1 million and state net operating loss NOL was $106.0 million as of December 31, 2013. The NOL carry-forward amounts are more likely than not to be recovered and therefore require no valuation allowance. The NOL carry-forward does not begin to expire until 2033. | |
As of September 30, 2014 the Company had unrecognized tax benefits of approximately $7.3 million. Included in the balance of unrecognized tax benefits is approximately $1.6 million 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 twelve months. | |
The State of Hawaii Department of Taxation is presently auditing the Company’s 2010, 2011 and 2012 Hawaii state income tax returns. The State of California Board of Equalization is presently auditing the Company’s 2010, 2011, and 2012 sales and use tax filings. The State of California Franchise Tax Board is presently auditing the Company’s 2008 through 2011 enterprise zone filings. It is uncertain when the state audits will be completed. The Company believes that the final resolution of the state audits will not have a material impact on its financial condition or results of operations. | |
Regulatory_Assets_and_Liabilit
Regulatory Assets and Liabilities | 9 Months Ended |
Sep. 30, 2014 | |
Regulatory Assets and Liabilities | ' |
Regulatory Assets and Liabilities | ' |
Note 9. Regulatory Assets and Liabilities | |
During 2013, the assigned Administrative Law Judge granted Cal Water’s request to continue applying existing rates on and after January 1, 2014 as interim rates and allowed Cal Water to track the difference between interim rates and the new authorized rates in a memorandum account. The Commission issued a final order for Cal Water’s 2012 General Rate Case (GRC) on August 14, 2014. The 2012 GRC covers the years 2014, 2015, 2016 and replaces the 2009 GRC which covered the years 2011, 2012 and 2013. The difference between Cal Water’s interim rates and the adopted new rates for the first eight months of 2014 resulted in a regulatory receivable of $30.6 million. On September 30, 2014, the Commission authorized recovery of this regulatory receivable through ratepayer surcharges over the next three years. As of September 30, 2014, the interim rates memorandum account balance was recorded as a regulatory balancing account asset of $17.1 million and a regulatory asset of $13.0 million, net of deferred revenues of $0.5 million. | |
As part of the Cal Water GRC decision, a balancing account for Cal Water’s employee and retiree health care plans was authorized with an effective date of January 1, 2014. The health care balancing account is a two-way balancing account that tracks the differences between the adopted rate recovery and actual medical expenses. The health care balancing account allows Cal Water to recover from ratepayers eighty-five percent of any actual medical costs that exceed the adopted rate recovery. If the adopted rate recovery exceeds actual medical costs, Cal Water is required to refund eighty-five percent of the excess to ratepayers. As of September 30, 2014 the health care balancing account was recorded as a regulatory asset of $1.9 million. | |
The Commission authorized balancing accounts for Cal Water’s pension plans and conservation program in the 2009 and 2012 GRC decisions. The pension plan’s balancing account is a two-way balancing account that tracks the differences between actual expenses and adopted rate recovery which will result in either a regulatory asset or liability. The conservation program is a one-way balancing account that tracks the difference between actual expenses and adopted rate recovery which may result in a regulatory liability if actual conservation expenses are less than adopted. During 2014, the Commission authorized a $6.3 million ratepayer refund for the conservation program balancing account authorized in the 2009 GRC. As of September 30, 2014, the 2009 GRC pension balancing account was recorded as a regulatory asset of $3.0 million and the 2012 GRC pension balancing account was recorded as a regulatory liability of $3.5 million. As of September 30, 2014, the 2009 conservation balancing account was recorded as a regulatory balancing account liability of $4.9 million and the 2012 GRC conservation balancing account was recorded in regulatory and other liabilities of $2.0 million. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
Note 10. Commitments and Contingencies | |
Commitments | |
The Company has significant commitments to lease certain office spaces and water systems and to purchase water from water wholesalers. These commitments are described in Form 10-K for the year ended December 31, 2013. As of September 30, 2014, there were no significant changes from December 31, 2013. | |
Contingencies | |
Groundwater Contamination | |
The Company has undertaken litigation against third parties to recover past and future costs related to ground water contamination in the Company’s service areas. The cost of litigation is expensed as incurred and any settlement is first offset against such costs. The Commission’s general policy requires all proceeds from contamination litigation to be used first to pay transactional expenses, then to make ratepayers whole for water treatment costs to comply with the Commission’s water quality standards. The Commission 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 shareholders, determined on a case by case basis. The Commission has authorized various memorandum accounts that allow the Company to track significant litigation costs to request recovery of these costs in future filings and uses of proceeds to comply with Commission’s general policy. | |
Other Legal Matters | |
From time to time, the Company is involved in various disputes and litigation matters that arise in the ordinary course of business. The status of each significant matter is reviewed and assessed for potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount of the range of loss can be estimated, a liability is accrued for the estimated loss in accordance with the accounting standards for contingencies. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on the best information available at the time. While the outcome of these disputes and litigation matters cannot be predicted with any certainty, management does not believe when taking into account existing reserves the ultimate resolution of these matters will materially affect the Company’s financial position, results of operations, or cash flows. The Company recognized a liability of $2.7 million and $1.3 million for all known legal matters as of September 30, 2014 and December 31, 2013, respectively. 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, 2014 | |||||||||||||||||
Fair Value of Financial Assets and Liabilities | ' | ||||||||||||||||
Fair Value of Financial Assets and Liabilities | ' | ||||||||||||||||
Note 11. 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 hierarchal framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. The three levels in the hierarchy are as follows: | |||||||||||||||||
Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices. | |||||||||||||||||
Level 2 - Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reporting date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, or priced with discounted cash flow or option pricing models using highly observable inputs. | |||||||||||||||||
Level 3 - Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those valued with models requiring significant management judgment or estimation. | |||||||||||||||||
Specific valuation methods include the following: | |||||||||||||||||
Cash equivalents, accounts receivable, accounts payable, and short-term borrowings 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 1.19%. | |||||||||||||||||
Advances for construction fair values were estimated using broker quotes from companies that frequently purchase these investments. | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Fair Value | |||||||||||||||||
Cost | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Long -term debt, including current maturities | $ | 429,444 | — | $ | 526,733 | — | $ | 526,733 | |||||||||
Advances for construction | 182,172 | — | 74,389 | — | 74,389 | ||||||||||||
Total | $ | 611,616 | $ | — | $ | 601,122 | $ | — | $ | 601,122 | |||||||
December 31, 2013 | |||||||||||||||||
Fair Value | |||||||||||||||||
Cost | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Long -term debt, including current maturities | $ | 434,050 | $ | — | $ | 511,146 | $ | — | $ | 511,146 | |||||||
Advances for construction | 183,393 | — | 73,389 | — | 73,389 | ||||||||||||
Total | $ | 617,443 | $ | 584,535 | $ | — | $ | 584,535 | |||||||||
Condensed_Consolidating_Financ
Condensed Consolidating Financial Statements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Condensed Consolidating Financial Statements | ' | ||||||||||||||||
Condensed Consolidating Financial Statements | ' | ||||||||||||||||
Note 12. Condensed Consolidating Financial Statements | |||||||||||||||||
On April 17, 2009, Cal Water issued $100 million aggregate principal amount of 5.875% First Mortgage Bonds due 2019, and on November 17, 2010, Cal Water issued $100 million aggregate principal amount of 5.500% First Mortgage Bonds due 2040, all of which are fully and unconditionally guaranteed by the Company. As a result of these guarantee arrangements, we are required to present the following condensed consolidating financial information. | |||||||||||||||||
The following tables present the condensed consolidating balance sheets as of September 30, 2014 and December 31, 2013, the condensed consolidating statements of income for the three months ended September 30, 2014 and 2013, the condensed consolidating statements of income for the nine months ended September 30, 2014 and 2013 and the condensed consolidating statements of cash flows for the nine months ended September, 2014 and 2013 of (i) California Water Service Group, the guarantor of the first mortgage bonds and the parent company; (ii) California Water Service Company, the issuer of the first mortgage bonds and a 100% owned consolidated subsidiary of California Water Service Group; and (iii) the other 100% owned non-guarantor consolidated subsidiaries of California Water Service Group. | |||||||||||||||||
CALIFORNIA WATER SERVICE GROUP | |||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||
As of September 30, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
ASSETS | |||||||||||||||||
Utility plant: | |||||||||||||||||
Utility plant | $ | 1,318 | $ | 2,120,177 | $ | 192,129 | $ | (7,197 | ) | $ | 2,306,427 | ||||||
Less accumulated depreciation and amortization | (320 | ) | (705,851 | ) | (41,266 | ) | 1,695 | (745,742 | ) | ||||||||
Net utility plant | 998 | 1,414,326 | 150,863 | (5,502 | ) | 1,560,685 | |||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | 1,316 | 26,218 | 1,951 | — | 29,485 | ||||||||||||
Receivables and unbilled revenue | (756 | ) | 118,265 | 9,976 | (94 | ) | 127,391 | ||||||||||
Receivables from affiliates | 22,242 | 977 | 95 | (23,314 | ) | — | |||||||||||
Other current assets | 107 | 19,078 | 1,217 | — | 20,402 | ||||||||||||
Total current assets | 22,909 | 164,538 | 13,239 | (23,408 | ) | 177,278 | |||||||||||
Other assets: | |||||||||||||||||
Regulatory assets | — | 274,509 | 2,967 | — | 277,476 | ||||||||||||
Investments in affiliates | 633,705 | — | — | (633,705 | ) | — | |||||||||||
Long-term affiliate notes receivable | 25,516 | — | — | (25,516 | ) | — | |||||||||||
Other assets | 1,037 | 48,729 | 4,287 | (412 | ) | 53,641 | |||||||||||
Total other assets | 660,258 | 323,238 | 7,254 | (659,633 | ) | 331,117 | |||||||||||
$ | 684,165 | $ | 1,902,102 | $ | 171,356 | $ | (688,543 | ) | $ | 2,069,080 | |||||||
CAPITALIZATION AND LIABILITIES | |||||||||||||||||
Capitalization: | |||||||||||||||||
Common stockholders’ equity | $ | 622,282 | $ | 564,803 | $ | 74,304 | $ | (639,107 | ) | $ | 622,282 | ||||||
Affiliate long-term debt | — | — | 25,516 | (25,516 | ) | — | |||||||||||
Long-term debt, less current maturities | — | 421,909 | 916 | — | 422,825 | ||||||||||||
Total capitalization | 622,282 | 986,712 | 100,736 | (664,623 | ) | 1,045,107 | |||||||||||
Current liabilities: | |||||||||||||||||
Current maturities of long-term debt | — | 6,164 | 455 | — | 6,619 | ||||||||||||
Short-term borrowings | 61,715 | — | — | 61,715 | |||||||||||||
Payables to affiliates | — | 1,813 | 21,501 | (23,314 | ) | — | |||||||||||
Accounts payable | — | 68,659 | 3,208 | 71,867 | |||||||||||||
Accrued expenses and other liabilities | 168 | 71,269 | 3,818 | (42 | ) | 75,213 | |||||||||||
Total current liabilities | 61,883 | 147,905 | 28,982 | (23,356 | ) | 215,414 | |||||||||||
Unamortized investment tax credits | — | 2,106 | — | — | 2,106 | ||||||||||||
Deferred income taxes, net | — | 206,552 | 4,369 | (564 | ) | 210,357 | |||||||||||
Pension and postretirement benefits other than pensions | — | 153,085 | — | — | 153,085 | ||||||||||||
Regulatory and other liabilities | — | 82,757 | 8,956 | — | 91,713 | ||||||||||||
Advances for construction | — | 181,514 | 658 | — | 182,172 | ||||||||||||
Contributions in aid of construction | — | 141,471 | 27,655 | — | 169,126 | ||||||||||||
$ | 684,165 | $ | 1,902,102 | $ | 171,356 | $ | (688,543 | ) | $ | 2,069,080 | |||||||
CALIFORNIA WATER SERVICE GROUP | |||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
ASSETS | |||||||||||||||||
Utility plant: | |||||||||||||||||
Utility plant | $ | 1,318 | $ | 2,034,935 | $ | 184,272 | $ | (7,197 | ) | $ | 2,213,328 | ||||||
Less accumulated depreciation and amortization | (164 | ) | (661,780 | ) | (37,168 | ) | 1,615 | (697,497 | ) | ||||||||
Net utility plant | 1,154 | 1,373,155 | 147,104 | (5,582 | ) | 1,515,831 | |||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | 5,280 | 20,790 | 1,436 | — | 27,506 | ||||||||||||
Receivables and unbilled revenue | (756 | ) | 90,008 | 8,931 | (94 | ) | 98,089 | ||||||||||
Receivables from affiliates | 16,747 | 5,755 | — | (22,502 | ) | — | |||||||||||
Other current assets | — | 13,011 | 884 | — | 13,895 | ||||||||||||
Total current assets | 21,271 | 129,564 | 11,251 | (22,596 | ) | 139,490 | |||||||||||
Other assets: | |||||||||||||||||
Regulatory assets | — | 248,938 | 2,743 | — | 251,681 | ||||||||||||
Investments in affiliates | 565,347 | — | — | (565,347 | ) | — | |||||||||||
Long-term affiliate notes receivable | 26,255 | — | — | (26,255 | ) | — | |||||||||||
Other assets | 1,120 | 44,827 | 7,111 | (205 | ) | 52,853 | |||||||||||
Total other assets | 592,722 | 293,765 | 9,854 | (591,807 | ) | 304,534 | |||||||||||
$ | 615,147 | $ | 1,796,484 | $ | 168,209 | $ | (619,985 | ) | $ | 1,959,855 | |||||||
CAPITALIZATION AND LIABILITIES | |||||||||||||||||
Capitalization: | |||||||||||||||||
Common stockholders’ equity | $ | 598,756 | $ | 500,290 | $ | 70,548 | $ | (570,838 | ) | $ | 598,756 | ||||||
Affiliate long-term debt | — | — | 26,255 | (26,255 | ) | — | |||||||||||
Long-term debt, less current maturities | — | 424,854 | 1,288 | — | 426,142 | ||||||||||||
Total capitalization | 598,756 | 925,144 | 98,091 | (597,093 | ) | 1,024,898 | |||||||||||
Current liabilities: | |||||||||||||||||
Current maturities of long-term debt | — | 6,137 | 1,771 | — | 7,908 | ||||||||||||
Short-term borrowings | 16,815 | 30,000 | — | — | 46,815 | ||||||||||||
Payables to affiliates | 48 | — | 22,454 | (22,502 | ) | — | |||||||||||
Accounts payable | — | 51,764 | 3,323 | — | 55,087 | ||||||||||||
Accrued expenses and other liabilities | 107 | 55,346 | 1,321 | — | 56,774 | ||||||||||||
Total current liabilities | 16,970 | 143,247 | 28,869 | (22,502 | ) | 166,584 | |||||||||||
Unamortized investment tax credits | — | 2,106 | — | — | 2,106 | ||||||||||||
Deferred income taxes, net | (579 | ) | 179,870 | 4,344 | (390 | ) | 183,245 | ||||||||||
Pension and postretirement benefits other than pensions | — | 145,451 | — | — | 145,451 | ||||||||||||
Regulatory and other liabilities | — | 77,627 | 8,828 | — | 86,455 | ||||||||||||
Advances for construction | — | 182,776 | 617 | — | 183,393 | ||||||||||||
Contributions in aid of construction | — | 140,263 | 27,460 | — | 167,723 | ||||||||||||
$ | 615,147 | $ | 1,796,484 | $ | 168,209 | $ | (619,985 | ) | $ | 1,959,855 | |||||||
CALIFORNIA WATER SERVICE GROUP | |||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||
For the three months ended September 30, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
Operating revenue | $ | — | $ | 180,768 | $ | 10,416 | $ | — | $ | 191,184 | |||||||
Operating expenses: | |||||||||||||||||
Operations: | |||||||||||||||||
Water production costs | — | 64,332 | 2,648 | — | 66,980 | ||||||||||||
Administrative and general | 34 | 21,282 | 2,449 | — | 23,765 | ||||||||||||
Other | — | 14,161 | 1,657 | (126 | ) | 15,692 | |||||||||||
Maintenance | — | 4,620 | 180 | — | 4,800 | ||||||||||||
Depreciation and amortization | 57 | 13,692 | 926 | (27 | ) | 14,648 | |||||||||||
Income tax (benefit) expense | (79 | ) | 18,632 | 393 | 287 | 19,233 | |||||||||||
Taxes other than income taxes | — | 4,409 | 823 | — | 5,232 | ||||||||||||
Total operating expenses | 12 | 141,128 | 9,076 | 134 | 150,350 | ||||||||||||
Net operating (loss) income | (12 | ) | 39,640 | 1,340 | (134 | ) | 40,834 | ||||||||||
Other Income and Expenses: | |||||||||||||||||
Non-regulated revenue | 448 | 4,027 | 446 | (512 | ) | 4,409 | |||||||||||
Non-regulated expenses, net | — | (4,538 | ) | (274 | ) | — | (4,812 | ) | |||||||||
Income tax (expense) on other income and expense | (182 | ) | 207 | (132 | ) | 276 | 169 | ||||||||||
Net other income | 266 | (304 | ) | 40 | (236 | ) | (234 | ) | |||||||||
Interest: | |||||||||||||||||
Interest expense | 103 | 7,030 | 473 | (385 | ) | 7,221 | |||||||||||
Less: capitalized interest | — | (252 | ) | (19 | ) | — | (271 | ) | |||||||||
Net interest expense | 103 | 6,778 | 454 | (385 | ) | 6,950 | |||||||||||
Equity earnings of subsidiaries | 33,499 | — | — | (33,499 | ) | — | |||||||||||
Net income (loss) | $ | 33,650 | $ | 32,558 | $ | 926 | $ | (33,484 | ) | $ | 33,650 | ||||||
CALIFORNIA WATER SERVICE GROUP | |||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
Operating revenue | $ | — | $ | 174,699 | $ | 9,705 | $ | — | $ | 184,404 | |||||||
Operating expenses: | |||||||||||||||||
Operations: | |||||||||||||||||
Water production costs | — | 67,981 | 2,633 | — | 70,614 | ||||||||||||
Administrative and general | — | 22,354 | 2,316 | — | 24,670 | ||||||||||||
Other | — | 15,883 | 1,900 | (126 | ) | 17,657 | |||||||||||
Maintenance | — | 4,382 | 193 | — | 4,575 | ||||||||||||
Depreciation and amortization | 14 | 13,714 | 805 | (28 | ) | 14,505 | |||||||||||
Income tax (benefit) expense | (17 | ) | 10,721 | 107 | 354 | 11,165 | |||||||||||
Taxes other than income taxes | — | 4,680 | 734 | — | 5,414 | ||||||||||||
Total operating (income) expenses | (3 | ) | 139,715 | 8,688 | 200 | 148,600 | |||||||||||
Net operating income (loss) | 3 | 34,984 | 1,017 | (200 | ) | 35,804 | |||||||||||
Other Income and Expenses: | |||||||||||||||||
Non-regulated revenue | 572 | 3,385 | 475 | (783 | ) | 3,649 | |||||||||||
Non-regulated expenses, net | — | (2,515 | ) | (310 | ) | — | (2,825 | ) | |||||||||
Income tax (expense) on other income and expense | (232 | ) | (355 | ) | (85 | ) | 342 | (330 | ) | ||||||||
Net other income (expense) | 340 | 515 | 80 | (441 | ) | 494 | |||||||||||
Interest: | |||||||||||||||||
Interest expense | 30 | 7,608 | 707 | (658 | ) | 7,687 | |||||||||||
Less: capitalized interest | — | (495 | ) | (45 | ) | — | (540 | ) | |||||||||
Net interest expense | 30 | 7,113 | 662 | (658 | ) | 7,147 | |||||||||||
Equity earnings of subsidiaries | 28,838 | — | — | (28,838 | ) | — | |||||||||||
Net income (loss) | $ | 29,151 | $ | 28,386 | $ | 435 | $ | (28,821 | ) | $ | 29,151 | ||||||
CALIFORNIA WATER SERVICE GROUP | |||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
Operating revenue | $ | — | $ | 434,857 | $ | 25,258 | $ | — | $ | 460,115 | |||||||
Operating expenses: | |||||||||||||||||
Operations: | |||||||||||||||||
Water production costs | — | 167,214 | 7,083 | — | 174,297 | ||||||||||||
Administrative and general | 67 | 65,144 | 7,491 | — | 72,702 | ||||||||||||
Other | — | 43,186 | 5,264 | (378 | ) | 48,072 | |||||||||||
Maintenance | — | 14,276 | 517 | — | 14,793 | ||||||||||||
Depreciation and amortization | 157 | 43,607 | 3,104 | (80 | ) | 46,788 | |||||||||||
Income tax (benefit) expense | (184 | ) | 22,713 | (686 | ) | 741 | 22,584 | ||||||||||
Taxes other than income taxes | — | 13,552 | 2,049 | — | 15,601 | ||||||||||||
Total operating expenses | 40 | 369,692 | 24,822 | 283 | 394,837 | ||||||||||||
Net operating (loss) income | (40 | ) | 65,165 | 436 | (283 | ) | 65,278 | ||||||||||
Other Income and Expenses: | |||||||||||||||||
Non-regulated revenue | 1,365 | 11,264 | 1,193 | (1,659 | ) | 12,163 | |||||||||||
Non-regulated expenses, net | — | (10,286 | ) | (898 | ) | — | (11,184 | ) | |||||||||
Income tax (expense) on other income and expense | (556 | ) | (399 | ) | (144 | ) | 708 | (391 | ) | ||||||||
Net other income | 809 | 579 | 151 | (951 | ) | 588 | |||||||||||
Interest: | |||||||||||||||||
Interest expense | 228 | 20,974 | 1,452 | (1,281 | ) | 21,373 | |||||||||||
Less: capitalized interest | — | (790 | ) | (61 | ) | — | (851 | ) | |||||||||
Net interest expense | 228 | 20,184 | 1,391 | (1,281 | ) | 20,522 | |||||||||||
Equity earnings of subsidiaries | 44,803 | — | — | (44,803 | ) | — | |||||||||||
Net income (loss) | $ | 45,344 | $ | 45,560 | $ | (804 | ) | $ | (44,756 | ) | $ | 45,344 | |||||
CALIFORNIA WATER SERVICE GROUP | |||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
Operating revenue | $ | — | $ | 425,860 | $ | 24,543 | $ | — | $ | 450,403 | |||||||
Operating expenses: | |||||||||||||||||
Operations: | |||||||||||||||||
Water production costs | — | 164,524 | 7,432 | — | 171,956 | ||||||||||||
Administrative and general | — | 65,423 | 7,683 | — | 73,106 | ||||||||||||
Other | — | 45,490 | 5,220 | (378 | ) | 50,332 | |||||||||||
Maintenance | — | 12,376 | 520 | — | 12,896 | ||||||||||||
Depreciation and amortization | 42 | 41,168 | 2,499 | (84 | ) | 43,625 | |||||||||||
Income tax (benefit) expense | (246 | ) | 19,807 | (1,064 | ) | 1,070 | 19,567 | ||||||||||
Taxes other than income taxes | — | 14,549 | 2,015 | — | 16,564 | ||||||||||||
Total operating (income) expenses | (204 | ) | 363,337 | 24,305 | 608 | 388,046 | |||||||||||
Net operating income (loss) | 204 | 62,523 | 238 | (608 | ) | 62,357 | |||||||||||
Other Income and Expenses: | |||||||||||||||||
Non-regulated revenue | 1,739 | 9,572 | 1,415 | (2,340 | ) | 10,386 | |||||||||||
Non-regulated expenses, net | — | (7,308 | ) | (1,174 | ) | — | (8,482 | ) | |||||||||
Income tax (expense) on other income and expense | (708 | ) | (923 | ) | (169 | ) | 1,035 | (765 | ) | ||||||||
Net other income (expenses) | 1,031 | 1,341 | 72 | (1,305 | ) | 1,139 | |||||||||||
Interest: | |||||||||||||||||
Interest expense | 563 | 22,966 | 1,961 | (1,963 | ) | 23,527 | |||||||||||
Less: capitalized interest | — | (1,279 | ) | (340 | ) | — | (1,619 | ) | |||||||||
Net interest expense | 563 | 21,687 | 1,621 | (1,963 | ) | 21,908 | |||||||||||
Equity earnings of subsidiaries | 40,916 | — | — | (40,916 | ) | — | |||||||||||
Net income (loss) | $ | 41,588 | $ | 42,177 | $ | (1,311 | ) | $ | (40,866 | ) | $ | 41,588 | |||||
CALIFORNIA WATER SERVICE GROUP | |||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
Operating activities: | |||||||||||||||||
Net income (loss) | $ | 45,344 | $ | 45,560 | $ | (804 | ) | $ | (44,756 | ) | $ | 45,344 | |||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Equity earnings of subsidiaries | (44,803 | ) | — | — | 44,803 | — | |||||||||||
Dividends received from affiliates | 23,295 | — | — | (23,295 | ) | — | |||||||||||
Depreciation and amortization | 157 | 45,059 | 3,345 | (80 | ) | 48,481 | |||||||||||
Changes in value of life insurance contracts | — | (501 | ) | — | — | (501 | ) | ||||||||||
Other changes in noncurrent assets and liabilities | 2,160 | 11,539 | (392 | ) | 33 | 13,340 | |||||||||||
Changes in operating assets and liabilities: | (68 | ) | (7,969 | ) | 1,540 | — | (6,497 | ) | |||||||||
Net cash provided by operating activities | 26,085 | 93,688 | 3,689 | (23,295 | ) | 100,167 | |||||||||||
Investing activities: | |||||||||||||||||
Utility plant expenditures | — | (81,505 | ) | (4,753 | ) | — | (86,258 | ) | |||||||||
Investment in affiliates | (46,850 | ) | 46,850 | ||||||||||||||
Changes in affiliate advances | (5,455 | ) | 4,778 | (200 | ) | 877 | — | ||||||||||
Proceeds from affiliates long-term debt | 699 | — | — | (699 | ) | — | |||||||||||
Purchase of life insurance contracts | — | (3,207 | ) | — | — | (3,207 | ) | ||||||||||
Changes in restricted cash | — | 354 | — | — | 354 | ||||||||||||
Net cash (used in) investing activities | (51,606 | ) | (79,580 | ) | (4,953 | ) | 47,028 | (89,111 | ) | ||||||||
Financing Activities: | |||||||||||||||||
Short-term borrowings | 64,900 | 35,000 | — | — | 99,900 | ||||||||||||
Repayment of short-term borrowings | (20,000 | ) | (65,000 | ) | — | — | (85,000 | ) | |||||||||
Investment from affiliates | 42,000 | 4,850 | (46,850 | ) | |||||||||||||
Changes in affiliate advances | (48 | ) | 1,814 | (889 | ) | (877 | ) | — | |||||||||
Repayment of affiliates long-term borrowings | — | — | (699 | ) | 699 | — | |||||||||||
Repayment of long-term debt | — | (2,919 | ) | (1,685 | ) | — | (4,604 | ) | |||||||||
Advances and contributions in aid for construction | — | 8,239 | 541 | — | 8,780 | ||||||||||||
Refunds of advances for construction | — | (4,809 | ) | (49 | ) | — | (4,858 | ) | |||||||||
Dividends paid to non-affiliates | (23,295 | ) | — | — | — | (23,295 | ) | ||||||||||
Dividends paid to affiliates | — | (23,005 | ) | (290 | ) | 23,295 | — | ||||||||||
Net cash (used in) provided by financing activities | 21,557 | (8,680 | ) | 1,779 | (23,733 | ) | (9,077 | ) | |||||||||
Change in cash and cash equivalents | (3,964 | ) | 5,428 | 515 | — | 1,979 | |||||||||||
Cash and cash equivalents at beginning of period | 5,280 | 20,790 | 1,436 | — | 27,506 | ||||||||||||
Cash and cash equivalents at end of period | $ | 1,316 | $ | 26,218 | $ | 1,951 | $ | — | $ | 29,485 | |||||||
CALIFORNIA WATER SERVICE GROUP | |||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
Operating activities: | |||||||||||||||||
Net income (loss) | $ | 41,588 | $ | 42,177 | $ | (1,311 | ) | $ | (40,866 | ) | $ | 41,588 | |||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Equity earnings of subsidiaries | (40,916 | ) | — | — | 40,916 | — | |||||||||||
Dividends received from affiliates | 21,981 | — | — | (21,981 | ) | — | |||||||||||
Depreciation and amortization | 42 | 42,509 | 2,600 | (84 | ) | 45,067 | |||||||||||
Change in value of life insurance contracts | — | (1,147 | ) | — | — | (1,147 | ) | ||||||||||
Other changes in noncurrent assets and liabilities | 1,164 | 12,415 | (29 | ) | (49 | ) | 13,501 | ||||||||||
Changes in operating assets and liabilities | 390 | 4,220 | (1,803 | ) | 83 | 2,890 | |||||||||||
Net cash provided by (used in) operating activities | 24,249 | 100,174 | (543 | ) | (21,981 | ) | 101,899 | ||||||||||
Investing activities: | |||||||||||||||||
Utility plant expenditures | (640 | ) | (84,688 | ) | (9,454 | ) | — | (94,782 | ) | ||||||||
Investment in affiliates | (35,000 | ) | — | — | 35,000 | — | |||||||||||
Net changes in affiliate advances | (9,583 | ) | (2,359 | ) | 1,141 | 10,801 | — | ||||||||||
Repayment of affiliates long-term debt | 913 | 7,797 | — | (8,710 | ) | — | |||||||||||
Purchase of life insurance | — | (3,204 | ) | — | — | (3,204 | ) | ||||||||||
Changes in restricted cash and other changes, net | — | 1,148 | — | — | 1,148 | ||||||||||||
Net cash (used in) investing activities | (44,310 | ) | (81,306 | ) | (8,313 | ) | 37,091 | (96,838 | ) | ||||||||
Financing Activities: | |||||||||||||||||
Short-term borrowings | 15,315 | 20,000 | — | — | 35,315 | ||||||||||||
Repayment of short-term borrowings | (68,275 | ) | (45,000 | ) | — | — | (113,275 | ) | |||||||||
Proceeds from long-term debt | — | — | 48 | — | 48 | ||||||||||||
Repayment of long-term debt | — | (2,531 | ) | (527 | ) | — | (3,058 | ) | |||||||||
Net changes in affiliate advances | — | (972 | ) | 11,773 | (10,801 | ) | — | ||||||||||
Repayment of affiliates long-term debt | (7,796 | ) | — | (914 | ) | 8,710 | — | ||||||||||
Advances and contributions in aid for construction | — | 7,545 | 32 | — | 7,577 | ||||||||||||
Refunds of advances for construction | — | (5,184 | ) | (46 | ) | — | (5,230 | ) | |||||||||
Dividends paid to non-affiliates | (21,981 | ) | — | — | — | (21,981 | ) | ||||||||||
Dividends paid to affiliates | — | (19,790 | ) | (2,191 | ) | 21,981 | — | ||||||||||
Issuance of common stock, net | 105,600 | — | — | — | 105,600 | ||||||||||||
Investment from affiliates | — | 35,000 | — | (35,000 | ) | — | |||||||||||
Net cash provided by (used in) financing activities | 22,863 | (10,932 | ) | 8,175 | (15,110 | ) | 4,996 | ||||||||||
Change in cash and cash equivalents | 2,802 | 7,936 | (681 | ) | — | 10,057 | |||||||||||
Cash and cash equivalents at beginning of period | 1,470 | 34,609 | 2,711 | — | 38,790 | ||||||||||||
Cash and cash equivalents at end of period | $ | 4,272 | $ | 42,545 | $ | 2,030 | $ | — | $ | 48,847 | |||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Revenue | ' | |||||||
Revenue | ||||||||
Revenue generally includes monthly cycle customer billings for regulated water and wastewater services at rates authorized by regulatory commissions (plus an estimate for water used between the customer’s last meter reading and the end of the accounting period) and billings to certain non-regulated customers at rates authorized by contract with government agencies. | ||||||||
The Company’s regulated water and waste water revenue requirements are authorized by the Commissions in the states in which it operates. The revenue requirements are intended to provide the Company an opportunity to recover its operating costs and earn a reasonable return on investments. | ||||||||
For metered customers, Cal Water recognizes revenue from rates which are designed and authorized by the California Public Utilities Commission (CPUC). Under the Water Revenue Adjustment Mechanism (WRAM), Cal Water records the adopted level of volumetric revenues, which would include recovery of cost of service and a return on investments, as established by the CPUC for metered accounts (adopted volumetric revenues). In addition to volumetric-based revenues, the revenue requirements approved by the CPUC include service charges, flat rate charges, and other items not subject to the WRAM. The adopted volumetric revenue considers the seasonality of consumption of water based upon historical averages. The variance between adopted volumetric revenues and actual billed volumetric revenues for metered accounts is recorded as a component of revenue with an offsetting entry to a regulatory asset or liability balancing account (tracked individually for each Cal Water district) subject to certain criteria under the accounting for regulated operations being met. The variance amount may be positive or negative and represents amounts that will be billed or refunded to customers in the future. | ||||||||
Cost-recovery rates are designed to permit full recovery of certain costs. Cost-recovery rates such as the Modified Cost Balancing Account (MCBA) provides for recovery of adopted expense levels for purchased water, purchased power and pump taxes, as established by the CPUC. In addition, cost-recovery rates include recovery of cost related to water conservation programs and certain other operation expenses adopted by the CPUC. There is no markup for return or profit for cost-recovery expenses and are generally recognized when expenses are incurred. Variances (which include the effects of changes in both rate and volume for the MCBA) between adopted and actual costs are recorded as a component of revenue, as the amount of such variances will be recovered from or refunded to Cal Water customers at a later date. The variance between adopted costs and actual costs for metered accounts is recorded as a component of revenue with an offsetting entry to a regulatory asset or liability balancing account (transferred individually for each Cal Water District) subject to certain criteria under the accounting for regulated operations being met. | ||||||||
The balances in the WRAM and MCBA assets and liabilities accounts will fluctuate on a monthly basis depending upon the variance between adopted and actual results. The recovery or refund of the WRAM is netted against the MCBA over- or under-recovery for the corresponding district and is interest bearing at the current 90 day commercial paper rate. At the end of any calendar year, Cal Water files with the CPUC to refund or collect the balance in the accounts. Most undercollected net WRAM and MCBA receivable balances are collected over 12 or 18 months. Cal Water defers net WRAM and MCBA operating revenues and associated costs whenever the net receivable balances are estimated to be collected more than 24 months after the respective reporting periods in which it was recognized. The deferred net WRAM and MCBA revenues and associated costs were determined using forecasts of rate payer consumption trends in future reporting periods and the timing of when the CPUC will authorize Cal Water’s filings to recover the undercollected balances. Deferred net WRAM and MCBA revenues and associated costs will be recognized as revenues and costs in future periods when collection is within twenty-four months of the respective reporting period. | ||||||||
The net WRAM and MCBA balances included in regulatory balancing account, assets, and liabilities were: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Net short-term receivable | $ | 27,927 | $ | 30,887 | ||||
Net long-term receivable | 16,608 | 15,423 | ||||||
Total receivable | $ | 44,535 | $ | 46,310 | ||||
Net short-term payable | $ | 423 | $ | 1,032 | ||||
Net long-term payable | 1,385 | 906 | ||||||
Total payable | $ | 1,808 | $ | 1,938 | ||||
Flat rate customers are billed in advance at the beginning of the service period. The revenue is prorated so that the portion of revenue applicable to the current period is included in that period’s revenue, with the balance recorded as unearned revenue on the balance sheets and recognized as revenue when earned in the subsequent accounting period. The unearned revenue liability was $1.5 million as of September 30, 2014 and as of December 31, 2013. This liability is included in “accrued expenses and other liabilities” on the condensed consolidated balance sheets. | ||||||||
Cash and Cash Equivalents | ' | |||||||
Cash and Cash Equivalents | ||||||||
Cash equivalents include highly liquid investments with maturities of three months or less. Cash and cash equivalents was $29.5 million and $27.5 million as of September 30, 2014 and December 31, 2013, respectively. Restricted cash was included on the condensed consolidated balance sheets as “taxes, prepaid expenses and other assets” and was $0.8 million and $1.2 million as of September 30, 2014 and December 31, 2013, respectively. | ||||||||
Accounting Standards Update | ' | |||||||
Accounting Standards Update | ||||||||
On May 28, 2014 the Financial Accounting Standards Board issued an accounting standards update (ASU) 2014-09, Revenue from Contracts with Customers. This update creates a single, principles based framework for revenue recognition and is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when goods or services are transferred to customers. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements and related disclosures. | ||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Schedule of net WRAM and MCBA balances included in regulatory balancing account, assets and liabilities | ' | |||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Net short-term receivable | $ | 27,927 | $ | 30,887 | ||||
Net long-term receivable | 16,608 | 15,423 | ||||||
Total receivable | $ | 44,535 | $ | 46,310 | ||||
Net short-term payable | $ | 423 | $ | 1,032 | ||||
Net long-term payable | 1,385 | 906 | ||||||
Total payable | $ | 1,808 | $ | 1,938 |
Equity_Tables
Equity (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Equity | ' | ||||
Schedule of changes in equity | ' | ||||
Total Stockholders’ Equity | |||||
Balance at December 31, 2013 | $ | 598,756 | |||
Common stock issued | 1 | ||||
Share-based compensation expense | 1,476 | ||||
Common stock dividends paid | (23,295 | ) | |||
Net income | 45,344 | ||||
Balance at September 30, 2014 | $ | 622,282 |
Net_Income_Per_Share_Calculati1
Net Income Per Share Calculations (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Net Income Per Share Calculations | ' | |||||||
Schedule of SARs which were dilutive | ' | |||||||
Three Months Ended September 30 | ||||||||
2014 | 2013 | |||||||
Net Income available to common stockholders | $ | 33,650 | $ | 29,151 | ||||
Weighted average common shares outstanding, basic (in thousands) | 47,803 | 47,737 | ||||||
Dilutive stock appreciation rights (treasury method) (in thousands) | 37 | 33 | ||||||
Weighted average common shares outstanding, dilutive (in thousands) | 47,840 | 47,770 | ||||||
Net Income per share - basic | $ | 0.7 | $ | 0.61 | ||||
Net Income per share - diluted | $ | 0.7 | $ | 0.61 | ||||
Nine months Ended September 30 | ||||||||
2014 | 2013 | |||||||
Net Income available to common stockholders | $ | 45,344 | $ | 41,588 | ||||
Weighted average common shares outstanding, basic (in thousands) | 47,787 | 45,927 | ||||||
Dilutive stock appreciation rights (treasury method) (in thousands) | 38 | 30 | ||||||
Weighted average common shares outstanding, dilutive (in thousands) | 47,825 | 45,957 | ||||||
Net Income per share - basic | $ | 0.95 | $ | 0.91 | ||||
Net Income per share - diluted | $ | 0.95 | $ | 0.9 |
Pension_Plan_and_Other_Postret1
Pension Plan and Other Postretirement Benefits (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Pension Plan and Other Postretirement Benefits | ' | |||||||||||||
Schedule of components of net periodic benefit costs for the pension plans and other postretirement benefits | ' | |||||||||||||
Three Months Ended September 30 | ||||||||||||||
Pension Plan | Other Benefits | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Service cost | $ | 3,539 | $ | 4,019 | $ | 1,398 | $ | 1,636 | ||||||
Interest cost | 4,737 | 4,140 | 1,321 | 1,121 | ||||||||||
Expected return on plan assets | (4,091 | ) | (3,559 | ) | (832 | ) | (600 | ) | ||||||
Recognized net initial APBO (1) | N/A | N/A | — | 3 | ||||||||||
Amortization of prior service cost | 1,527 | 1,542 | 11 | 21 | ||||||||||
Recognized net actuarial loss | 1,002 | 2,404 | 656 | 961 | ||||||||||
Net periodic benefit cost | $ | 6,714 | $ | 8,546 | $ | 2,554 | $ | 3,142 | ||||||
Nine months Ended September 30 | ||||||||||||||
Pension Plan | Other Benefits | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Service cost | $ | 11,973 | $ | 13,335 | $ | 4,637 | $ | 5,025 | ||||||
Interest cost | 14,190 | 12,266 | 3,995 | 3,339 | ||||||||||
Expected return on plan assets | (12,449 | ) | (10,689 | ) | (2,339 | ) | (1,796 | ) | ||||||
Recognized net initial APBO (1) | N/A | N/A | — | 7 | ||||||||||
Amortization of prior service cost | 4,547 | 4,624 | 33 | 61 | ||||||||||
Recognized net actuarial loss | 3,008 | 6,852 | 2,206 | 2,794 | ||||||||||
Net periodic benefit cost | $ | 21,269 | $ | 26,388 | $ | 8,532 | $ | 9,430 | ||||||
(1) APBO - Accumulated postretirement benefit obligation |
Fair_Value_of_Financial_Assets1
Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value of Financial Assets and Liabilities | ' | ||||||||||||||||
Schedule of fair value of long-term debt, including current maturities, and advances for construction | ' | ||||||||||||||||
September 30, 2014 | |||||||||||||||||
Fair Value | |||||||||||||||||
Cost | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Long -term debt, including current maturities | $ | 429,444 | — | $ | 526,733 | — | $ | 526,733 | |||||||||
Advances for construction | 182,172 | — | 74,389 | — | 74,389 | ||||||||||||
Total | $ | 611,616 | $ | — | $ | 601,122 | $ | — | $ | 601,122 | |||||||
December 31, 2013 | |||||||||||||||||
Fair Value | |||||||||||||||||
Cost | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Long -term debt, including current maturities | $ | 434,050 | $ | — | $ | 511,146 | $ | — | $ | 511,146 | |||||||
Advances for construction | 183,393 | — | 73,389 | — | 73,389 | ||||||||||||
Total | $ | 617,443 | $ | 584,535 | $ | — | $ | 584,535 | |||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Condensed Consolidating Financial Statements | ' | ||||||||||||||||
Schedule of Condensed Consolidating Balance Sheet | ' | ||||||||||||||||
As of September 30, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
ASSETS | |||||||||||||||||
Utility plant: | |||||||||||||||||
Utility plant | $ | 1,318 | $ | 2,120,177 | $ | 192,129 | $ | (7,197 | ) | $ | 2,306,427 | ||||||
Less accumulated depreciation and amortization | (320 | ) | (705,851 | ) | (41,266 | ) | 1,695 | (745,742 | ) | ||||||||
Net utility plant | 998 | 1,414,326 | 150,863 | (5,502 | ) | 1,560,685 | |||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | 1,316 | 26,218 | 1,951 | — | 29,485 | ||||||||||||
Receivables and unbilled revenue | (756 | ) | 118,265 | 9,976 | (94 | ) | 127,391 | ||||||||||
Receivables from affiliates | 22,242 | 977 | 95 | (23,314 | ) | — | |||||||||||
Other current assets | 107 | 19,078 | 1,217 | — | 20,402 | ||||||||||||
Total current assets | 22,909 | 164,538 | 13,239 | (23,408 | ) | 177,278 | |||||||||||
Other assets: | |||||||||||||||||
Regulatory assets | — | 274,509 | 2,967 | — | 277,476 | ||||||||||||
Investments in affiliates | 633,705 | — | — | (633,705 | ) | — | |||||||||||
Long-term affiliate notes receivable | 25,516 | — | — | (25,516 | ) | — | |||||||||||
Other assets | 1,037 | 48,729 | 4,287 | (412 | ) | 53,641 | |||||||||||
Total other assets | 660,258 | 323,238 | 7,254 | (659,633 | ) | 331,117 | |||||||||||
$ | 684,165 | $ | 1,902,102 | $ | 171,356 | $ | (688,543 | ) | $ | 2,069,080 | |||||||
CAPITALIZATION AND LIABILITIES | |||||||||||||||||
Capitalization: | |||||||||||||||||
Common stockholders’ equity | $ | 622,282 | $ | 564,803 | $ | 74,304 | $ | (639,107 | ) | $ | 622,282 | ||||||
Affiliate long-term debt | — | — | 25,516 | (25,516 | ) | — | |||||||||||
Long-term debt, less current maturities | — | 421,909 | 916 | — | 422,825 | ||||||||||||
Total capitalization | 622,282 | 986,712 | 100,736 | (664,623 | ) | 1,045,107 | |||||||||||
Current liabilities: | |||||||||||||||||
Current maturities of long-term debt | — | 6,164 | 455 | — | 6,619 | ||||||||||||
Short-term borrowings | 61,715 | — | — | 61,715 | |||||||||||||
Payables to affiliates | — | 1,813 | 21,501 | (23,314 | ) | — | |||||||||||
Accounts payable | — | 68,659 | 3,208 | 71,867 | |||||||||||||
Accrued expenses and other liabilities | 168 | 71,269 | 3,818 | (42 | ) | 75,213 | |||||||||||
Total current liabilities | 61,883 | 147,905 | 28,982 | (23,356 | ) | 215,414 | |||||||||||
Unamortized investment tax credits | — | 2,106 | — | — | 2,106 | ||||||||||||
Deferred income taxes, net | — | 206,552 | 4,369 | (564 | ) | 210,357 | |||||||||||
Pension and postretirement benefits other than pensions | — | 153,085 | — | — | 153,085 | ||||||||||||
Regulatory and other liabilities | — | 82,757 | 8,956 | — | 91,713 | ||||||||||||
Advances for construction | — | 181,514 | 658 | — | 182,172 | ||||||||||||
Contributions in aid of construction | — | 141,471 | 27,655 | — | 169,126 | ||||||||||||
$ | 684,165 | $ | 1,902,102 | $ | 171,356 | $ | (688,543 | ) | $ | 2,069,080 | |||||||
As of December 31, 2013 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
ASSETS | |||||||||||||||||
Utility plant: | |||||||||||||||||
Utility plant | $ | 1,318 | $ | 2,034,935 | $ | 184,272 | $ | (7,197 | ) | $ | 2,213,328 | ||||||
Less accumulated depreciation and amortization | (164 | ) | (661,780 | ) | (37,168 | ) | 1,615 | (697,497 | ) | ||||||||
Net utility plant | 1,154 | 1,373,155 | 147,104 | (5,582 | ) | 1,515,831 | |||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | 5,280 | 20,790 | 1,436 | — | 27,506 | ||||||||||||
Receivables and unbilled revenue | (756 | ) | 90,008 | 8,931 | (94 | ) | 98,089 | ||||||||||
Receivables from affiliates | 16,747 | 5,755 | — | (22,502 | ) | — | |||||||||||
Other current assets | — | 13,011 | 884 | — | 13,895 | ||||||||||||
Total current assets | 21,271 | 129,564 | 11,251 | (22,596 | ) | 139,490 | |||||||||||
Other assets: | |||||||||||||||||
Regulatory assets | — | 248,938 | 2,743 | — | 251,681 | ||||||||||||
Investments in affiliates | 565,347 | — | — | (565,347 | ) | — | |||||||||||
Long-term affiliate notes receivable | 26,255 | — | — | (26,255 | ) | — | |||||||||||
Other assets | 1,120 | 44,827 | 7,111 | (205 | ) | 52,853 | |||||||||||
Total other assets | 592,722 | 293,765 | 9,854 | (591,807 | ) | 304,534 | |||||||||||
$ | 615,147 | $ | 1,796,484 | $ | 168,209 | $ | (619,985 | ) | $ | 1,959,855 | |||||||
CAPITALIZATION AND LIABILITIES | |||||||||||||||||
Capitalization: | |||||||||||||||||
Common stockholders’ equity | $ | 598,756 | $ | 500,290 | $ | 70,548 | $ | (570,838 | ) | $ | 598,756 | ||||||
Affiliate long-term debt | — | — | 26,255 | (26,255 | ) | — | |||||||||||
Long-term debt, less current maturities | — | 424,854 | 1,288 | — | 426,142 | ||||||||||||
Total capitalization | 598,756 | 925,144 | 98,091 | (597,093 | ) | 1,024,898 | |||||||||||
Current liabilities: | |||||||||||||||||
Current maturities of long-term debt | — | 6,137 | 1,771 | — | 7,908 | ||||||||||||
Short-term borrowings | 16,815 | 30,000 | — | — | 46,815 | ||||||||||||
Payables to affiliates | 48 | — | 22,454 | (22,502 | ) | — | |||||||||||
Accounts payable | — | 51,764 | 3,323 | — | 55,087 | ||||||||||||
Accrued expenses and other liabilities | 107 | 55,346 | 1,321 | — | 56,774 | ||||||||||||
Total current liabilities | 16,970 | 143,247 | 28,869 | (22,502 | ) | 166,584 | |||||||||||
Unamortized investment tax credits | — | 2,106 | — | — | 2,106 | ||||||||||||
Deferred income taxes, net | (579 | ) | 179,870 | 4,344 | (390 | ) | 183,245 | ||||||||||
Pension and postretirement benefits other than pensions | — | 145,451 | — | — | 145,451 | ||||||||||||
Regulatory and other liabilities | — | 77,627 | 8,828 | — | 86,455 | ||||||||||||
Advances for construction | — | 182,776 | 617 | — | 183,393 | ||||||||||||
Contributions in aid of construction | — | 140,263 | 27,460 | — | 167,723 | ||||||||||||
$ | 615,147 | $ | 1,796,484 | $ | 168,209 | $ | (619,985 | ) | $ | 1,959,855 | |||||||
Schedule of Condensed Consolidating Statement of Income | ' | ||||||||||||||||
For the three months ended September 30, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
Operating revenue | $ | — | $ | 180,768 | $ | 10,416 | $ | — | $ | 191,184 | |||||||
Operating expenses: | |||||||||||||||||
Operations: | |||||||||||||||||
Water production costs | — | 64,332 | 2,648 | — | 66,980 | ||||||||||||
Administrative and general | 34 | 21,282 | 2,449 | — | 23,765 | ||||||||||||
Other | — | 14,161 | 1,657 | (126 | ) | 15,692 | |||||||||||
Maintenance | — | 4,620 | 180 | — | 4,800 | ||||||||||||
Depreciation and amortization | 57 | 13,692 | 926 | (27 | ) | 14,648 | |||||||||||
Income tax (benefit) expense | (79 | ) | 18,632 | 393 | 287 | 19,233 | |||||||||||
Taxes other than income taxes | — | 4,409 | 823 | — | 5,232 | ||||||||||||
Total operating expenses | 12 | 141,128 | 9,076 | 134 | 150,350 | ||||||||||||
Net operating (loss) income | (12 | ) | 39,640 | 1,340 | (134 | ) | 40,834 | ||||||||||
Other Income and Expenses: | |||||||||||||||||
Non-regulated revenue | 448 | 4,027 | 446 | (512 | ) | 4,409 | |||||||||||
Non-regulated expenses, net | — | (4,538 | ) | (274 | ) | — | (4,812 | ) | |||||||||
Income tax (expense) on other income and expense | (182 | ) | 207 | (132 | ) | 276 | 169 | ||||||||||
Net other income | 266 | (304 | ) | 40 | (236 | ) | (234 | ) | |||||||||
Interest: | |||||||||||||||||
Interest expense | 103 | 7,030 | 473 | (385 | ) | 7,221 | |||||||||||
Less: capitalized interest | — | (252 | ) | (19 | ) | — | (271 | ) | |||||||||
Net interest expense | 103 | 6,778 | 454 | (385 | ) | 6,950 | |||||||||||
Equity earnings of subsidiaries | 33,499 | — | — | (33,499 | ) | — | |||||||||||
Net income (loss) | $ | 33,650 | $ | 32,558 | $ | 926 | $ | (33,484 | ) | $ | 33,650 | ||||||
For the three months ended September 30, 2013 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
Operating revenue | $ | — | $ | 174,699 | $ | 9,705 | $ | — | $ | 184,404 | |||||||
Operating expenses: | |||||||||||||||||
Operations: | |||||||||||||||||
Water production costs | — | 67,981 | 2,633 | — | 70,614 | ||||||||||||
Administrative and general | — | 22,354 | 2,316 | — | 24,670 | ||||||||||||
Other | — | 15,883 | 1,900 | (126 | ) | 17,657 | |||||||||||
Maintenance | — | 4,382 | 193 | — | 4,575 | ||||||||||||
Depreciation and amortization | 14 | 13,714 | 805 | (28 | ) | 14,505 | |||||||||||
Income tax (benefit) expense | (17 | ) | 10,721 | 107 | 354 | 11,165 | |||||||||||
Taxes other than income taxes | — | 4,680 | 734 | — | 5,414 | ||||||||||||
Total operating (income) expenses | (3 | ) | 139,715 | 8,688 | 200 | 148,600 | |||||||||||
Net operating income (loss) | 3 | 34,984 | 1,017 | (200 | ) | 35,804 | |||||||||||
Other Income and Expenses: | |||||||||||||||||
Non-regulated revenue | 572 | 3,385 | 475 | (783 | ) | 3,649 | |||||||||||
Non-regulated expenses, net | — | (2,515 | ) | (310 | ) | — | (2,825 | ) | |||||||||
Income tax (expense) on other income and expense | (232 | ) | (355 | ) | (85 | ) | 342 | (330 | ) | ||||||||
Net other income (expense) | 340 | 515 | 80 | (441 | ) | 494 | |||||||||||
Interest: | |||||||||||||||||
Interest expense | 30 | 7,608 | 707 | (658 | ) | 7,687 | |||||||||||
Less: capitalized interest | — | (495 | ) | (45 | ) | — | (540 | ) | |||||||||
Net interest expense | 30 | 7,113 | 662 | (658 | ) | 7,147 | |||||||||||
Equity earnings of subsidiaries | 28,838 | — | — | (28,838 | ) | — | |||||||||||
Net income (loss) | $ | 29,151 | $ | 28,386 | $ | 435 | $ | (28,821 | ) | $ | 29,151 | ||||||
For the nine months ended September 30, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
Operating revenue | $ | — | $ | 434,857 | $ | 25,258 | $ | — | $ | 460,115 | |||||||
Operating expenses: | |||||||||||||||||
Operations: | |||||||||||||||||
Water production costs | — | 167,214 | 7,083 | — | 174,297 | ||||||||||||
Administrative and general | 67 | 65,144 | 7,491 | — | 72,702 | ||||||||||||
Other | — | 43,186 | 5,264 | (378 | ) | 48,072 | |||||||||||
Maintenance | — | 14,276 | 517 | — | 14,793 | ||||||||||||
Depreciation and amortization | 157 | 43,607 | 3,104 | (80 | ) | 46,788 | |||||||||||
Income tax (benefit) expense | (184 | ) | 22,713 | (686 | ) | 741 | 22,584 | ||||||||||
Taxes other than income taxes | — | 13,552 | 2,049 | — | 15,601 | ||||||||||||
Total operating expenses | 40 | 369,692 | 24,822 | 283 | 394,837 | ||||||||||||
Net operating (loss) income | (40 | ) | 65,165 | 436 | (283 | ) | 65,278 | ||||||||||
Other Income and Expenses: | |||||||||||||||||
Non-regulated revenue | 1,365 | 11,264 | 1,193 | (1,659 | ) | 12,163 | |||||||||||
Non-regulated expenses, net | — | (10,286 | ) | (898 | ) | — | (11,184 | ) | |||||||||
Income tax (expense) on other income and expense | (556 | ) | (399 | ) | (144 | ) | 708 | (391 | ) | ||||||||
Net other income | 809 | 579 | 151 | (951 | ) | 588 | |||||||||||
Interest: | |||||||||||||||||
Interest expense | 228 | 20,974 | 1,452 | (1,281 | ) | 21,373 | |||||||||||
Less: capitalized interest | — | (790 | ) | (61 | ) | — | (851 | ) | |||||||||
Net interest expense | 228 | 20,184 | 1,391 | (1,281 | ) | 20,522 | |||||||||||
Equity earnings of subsidiaries | 44,803 | — | — | (44,803 | ) | — | |||||||||||
Net income (loss) | $ | 45,344 | $ | 45,560 | $ | (804 | ) | $ | (44,756 | ) | $ | 45,344 | |||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
Operating revenue | $ | — | $ | 425,860 | $ | 24,543 | $ | — | $ | 450,403 | |||||||
Operating expenses: | |||||||||||||||||
Operations: | |||||||||||||||||
Water production costs | — | 164,524 | 7,432 | — | 171,956 | ||||||||||||
Administrative and general | — | 65,423 | 7,683 | — | 73,106 | ||||||||||||
Other | — | 45,490 | 5,220 | (378 | ) | 50,332 | |||||||||||
Maintenance | — | 12,376 | 520 | — | 12,896 | ||||||||||||
Depreciation and amortization | 42 | 41,168 | 2,499 | (84 | ) | 43,625 | |||||||||||
Income tax (benefit) expense | (246 | ) | 19,807 | (1,064 | ) | 1,070 | 19,567 | ||||||||||
Taxes other than income taxes | — | 14,549 | 2,015 | — | 16,564 | ||||||||||||
Total operating (income) expenses | (204 | ) | 363,337 | 24,305 | 608 | 388,046 | |||||||||||
Net operating income (loss) | 204 | 62,523 | 238 | (608 | ) | 62,357 | |||||||||||
Other Income and Expenses: | |||||||||||||||||
Non-regulated revenue | 1,739 | 9,572 | 1,415 | (2,340 | ) | 10,386 | |||||||||||
Non-regulated expenses, net | — | (7,308 | ) | (1,174 | ) | — | (8,482 | ) | |||||||||
Income tax (expense) on other income and expense | (708 | ) | (923 | ) | (169 | ) | 1,035 | (765 | ) | ||||||||
Net other income (expenses) | 1,031 | 1,341 | 72 | (1,305 | ) | 1,139 | |||||||||||
Interest: | |||||||||||||||||
Interest expense | 563 | 22,966 | 1,961 | (1,963 | ) | 23,527 | |||||||||||
Less: capitalized interest | — | (1,279 | ) | (340 | ) | — | (1,619 | ) | |||||||||
Net interest expense | 563 | 21,687 | 1,621 | (1,963 | ) | 21,908 | |||||||||||
Equity earnings of subsidiaries | 40,916 | — | — | (40,916 | ) | — | |||||||||||
Net income (loss) | $ | 41,588 | $ | 42,177 | $ | (1,311 | ) | $ | (40,866 | ) | $ | 41,588 | |||||
Schedule of Condensed Consolidating Statement of Cash Flows | ' | ||||||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
Operating activities: | |||||||||||||||||
Net income (loss) | $ | 45,344 | $ | 45,560 | $ | (804 | ) | $ | (44,756 | ) | $ | 45,344 | |||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Equity earnings of subsidiaries | (44,803 | ) | — | — | 44,803 | — | |||||||||||
Dividends received from affiliates | 23,295 | — | — | (23,295 | ) | — | |||||||||||
Depreciation and amortization | 157 | 45,059 | 3,345 | (80 | ) | 48,481 | |||||||||||
Changes in value of life insurance contracts | — | (501 | ) | — | — | (501 | ) | ||||||||||
Other changes in noncurrent assets and liabilities | 2,160 | 11,539 | (392 | ) | 33 | 13,340 | |||||||||||
Changes in operating assets and liabilities: | (68 | ) | (7,969 | ) | 1,540 | — | (6,497 | ) | |||||||||
Net cash provided by operating activities | 26,085 | 93,688 | 3,689 | (23,295 | ) | 100,167 | |||||||||||
Investing activities: | |||||||||||||||||
Utility plant expenditures | — | (81,505 | ) | (4,753 | ) | — | (86,258 | ) | |||||||||
Investment in affiliates | (46,850 | ) | 46,850 | ||||||||||||||
Changes in affiliate advances | (5,455 | ) | 4,778 | (200 | ) | 877 | — | ||||||||||
Proceeds from affiliates long-term debt | 699 | — | — | (699 | ) | — | |||||||||||
Purchase of life insurance contracts | — | (3,207 | ) | — | — | (3,207 | ) | ||||||||||
Changes in restricted cash | — | 354 | — | — | 354 | ||||||||||||
Net cash (used in) investing activities | (51,606 | ) | (79,580 | ) | (4,953 | ) | 47,028 | (89,111 | ) | ||||||||
Financing Activities: | |||||||||||||||||
Short-term borrowings | 64,900 | 35,000 | — | — | 99,900 | ||||||||||||
Repayment of short-term borrowings | (20,000 | ) | (65,000 | ) | — | — | (85,000 | ) | |||||||||
Investment from affiliates | 42,000 | 4,850 | (46,850 | ) | |||||||||||||
Changes in affiliate advances | (48 | ) | 1,814 | (889 | ) | (877 | ) | — | |||||||||
Repayment of affiliates long-term borrowings | — | — | (699 | ) | 699 | — | |||||||||||
Repayment of long-term debt | — | (2,919 | ) | (1,685 | ) | — | (4,604 | ) | |||||||||
Advances and contributions in aid for construction | — | 8,239 | 541 | — | 8,780 | ||||||||||||
Refunds of advances for construction | — | (4,809 | ) | (49 | ) | — | (4,858 | ) | |||||||||
Dividends paid to non-affiliates | (23,295 | ) | — | — | — | (23,295 | ) | ||||||||||
Dividends paid to affiliates | — | (23,005 | ) | (290 | ) | 23,295 | — | ||||||||||
Net cash (used in) provided by financing activities | 21,557 | (8,680 | ) | 1,779 | (23,733 | ) | (9,077 | ) | |||||||||
Change in cash and cash equivalents | (3,964 | ) | 5,428 | 515 | — | 1,979 | |||||||||||
Cash and cash equivalents at beginning of period | 5,280 | 20,790 | 1,436 | — | 27,506 | ||||||||||||
Cash and cash equivalents at end of period | $ | 1,316 | $ | 26,218 | $ | 1,951 | $ | — | $ | 29,485 | |||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Parent | Cal Water | All Other | Consolidating | Consolidated | |||||||||||||
Company | Subsidiaries | Adjustments | |||||||||||||||
Operating activities: | |||||||||||||||||
Net income (loss) | $ | 41,588 | $ | 42,177 | $ | (1,311 | ) | $ | (40,866 | ) | $ | 41,588 | |||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Equity earnings of subsidiaries | (40,916 | ) | — | — | 40,916 | — | |||||||||||
Dividends received from affiliates | 21,981 | — | — | (21,981 | ) | — | |||||||||||
Depreciation and amortization | 42 | 42,509 | 2,600 | (84 | ) | 45,067 | |||||||||||
Change in value of life insurance contracts | — | (1,147 | ) | — | — | (1,147 | ) | ||||||||||
Other changes in noncurrent assets and liabilities | 1,164 | 12,415 | (29 | ) | (49 | ) | 13,501 | ||||||||||
Changes in operating assets and liabilities | 390 | 4,220 | (1,803 | ) | 83 | 2,890 | |||||||||||
Net cash provided by (used in) operating activities | 24,249 | 100,174 | (543 | ) | (21,981 | ) | 101,899 | ||||||||||
Investing activities: | |||||||||||||||||
Utility plant expenditures | (640 | ) | (84,688 | ) | (9,454 | ) | — | (94,782 | ) | ||||||||
Investment in affiliates | (35,000 | ) | — | — | 35,000 | — | |||||||||||
Net changes in affiliate advances | (9,583 | ) | (2,359 | ) | 1,141 | 10,801 | — | ||||||||||
Repayment of affiliates long-term debt | 913 | 7,797 | — | (8,710 | ) | — | |||||||||||
Purchase of life insurance | — | (3,204 | ) | — | — | (3,204 | ) | ||||||||||
Changes in restricted cash and other changes, net | — | 1,148 | — | — | 1,148 | ||||||||||||
Net cash (used in) investing activities | (44,310 | ) | (81,306 | ) | (8,313 | ) | 37,091 | (96,838 | ) | ||||||||
Financing Activities: | |||||||||||||||||
Short-term borrowings | 15,315 | 20,000 | — | — | 35,315 | ||||||||||||
Repayment of short-term borrowings | (68,275 | ) | (45,000 | ) | — | — | (113,275 | ) | |||||||||
Proceeds from long-term debt | — | — | 48 | — | 48 | ||||||||||||
Repayment of long-term debt | — | (2,531 | ) | (527 | ) | — | (3,058 | ) | |||||||||
Net changes in affiliate advances | — | (972 | ) | 11,773 | (10,801 | ) | — | ||||||||||
Repayment of affiliates long-term debt | (7,796 | ) | — | (914 | ) | 8,710 | — | ||||||||||
Advances and contributions in aid for construction | — | 7,545 | 32 | — | 7,577 | ||||||||||||
Refunds of advances for construction | — | (5,184 | ) | (46 | ) | — | (5,230 | ) | |||||||||
Dividends paid to non-affiliates | (21,981 | ) | — | — | — | (21,981 | ) | ||||||||||
Dividends paid to affiliates | — | (19,790 | ) | (2,191 | ) | 21,981 | — | ||||||||||
Issuance of common stock, net | 105,600 | — | — | — | 105,600 | ||||||||||||
Investment from affiliates | — | 35,000 | — | (35,000 | ) | — | |||||||||||
Net cash provided by (used in) financing activities | 22,863 | (10,932 | ) | 8,175 | (15,110 | ) | 4,996 | ||||||||||
Change in cash and cash equivalents | 2,802 | 7,936 | (681 | ) | — | 10,057 | |||||||||||
Cash and cash equivalents at beginning of period | 1,470 | 34,609 | 2,711 | — | 38,790 | ||||||||||||
Cash and cash equivalents at end of period | $ | 4,272 | $ | 42,545 | $ | 2,030 | $ | — | $ | 48,847 |
Organization_and_Operations_an1
Organization and Operations and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2014 | |
segment | |
Organization and Operations and Basis of Presentation | ' |
Number of reportable segments | 1 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Revenue | ' | ' |
Markup for return or profit for cost-recovery expenses | $0 | ' |
Maturity period of commercial paper | '90 days | ' |
Minimum collection period after net receivable balances were recognized in which the Company defers net WRAM and MCBA operating revenues and associated costs | '24 months | ' |
Maximum collection period in which deferred net WRAM and MCBA revenues and associated costs will be recognized | '24 months | ' |
Unearned revenue liability | 1,500,000 | 1,500,000 |
Regulatory Assets and Liabilities | ' | ' |
Net short-term receivable | 45,073,000 | 30,887,000 |
Net long-term receivable | 277,476,000 | 251,681,000 |
Net short-term payable | 6,791,000 | 1,827,000 |
Net long-term payable | 91,713,000 | 86,455,000 |
Minimum | ' | ' |
Regulatory Assets and Liabilities | ' | ' |
Expected collection period for undercollected net WRAM and MCBA receivables | '12 months | ' |
Maximum | ' | ' |
Regulatory Assets and Liabilities | ' | ' |
Expected collection period for undercollected net WRAM and MCBA receivables | '18 months | ' |
Net WRAM and MCBA accounts payable | ' | ' |
Regulatory Assets and Liabilities | ' | ' |
Net short-term payable | 423,000 | 1,032,000 |
Net long-term payable | 1,385,000 | 906,000 |
Total payable | 1,808,000 | 1,938,000 |
Net WRAM and MCBA accounts receivable | ' | ' |
Regulatory Assets and Liabilities | ' | ' |
Net short-term receivable | 27,927,000 | 30,887,000 |
Net long-term receivable | 16,608,000 | 15,423,000 |
Total receivable | $44,535,000 | $46,310,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Cash and Cash Equivalents | ' | ' | ' | ' |
Carrying value of cash and cash equivalents | $29,485,000 | $27,506,000 | $48,847,000 | $38,790,000 |
Carrying value of restricted cash | $800,000 | $1,200,000 | ' | ' |
Stockbased_Compensation_Detail
Stock-based Compensation (Details) (Equity Incentive Plan, USD $) | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | 20-May-14 | Apr. 27, 2005 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
Restricted Stock Awards (RSAs) | Restricted Stock Awards (RSAs) | Restricted Stock Awards (RSAs) | Restricted Stock Awards (RSAs) | Restricted Stock Unit Awards (RSUs) | Restricted Stock Unit Awards (RSUs) | Restricted Stock Unit Awards (RSUs) | Restricted Stock Unit Awards (RSUs) | Restricted Stock Unit Awards (RSUs) | Restricted Stock Unit Awards (RSUs) | |||||
Director | Employees | Employees | Officers | Officers | Officers | Officers | ||||||||
Minimum | Maximum | |||||||||||||
Stock-based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized to be issued under the plan | ' | ' | 2,000,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | '12 months | '36 months | '36 months | '3 years | ' | ' | ' | ' | ' |
Weighted average grant date fair value (in dollars per share) | ' | ' | ' | ' | $23.61 | ' | ' | ' | $23.61 | $20.62 | ' | ' | ' | ' |
RSAs granted under the Equity Incentive Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additions for new grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,143 | 50,267 | ' | ' |
Expiration period of award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' |
Options vested on anniversary date (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 200.00% |
Compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recorded compensation costs for the RSAs and RSUs | $1.50 | $1.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity_Details
Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Changes in total stockholders' equity | ' | ' | ' | ' |
Balance at December 31, 2013 | ' | ' | $598,756 | ' |
Common stock issued | ' | ' | 1 | ' |
Share-based compensation expense | ' | ' | 1,476 | ' |
Common stock dividends paid | ' | ' | -23,295 | ' |
Net income | 33,650 | 29,151 | 45,344 | 41,588 |
Balance at September 30, 2014 | $622,282 | ' | $622,282 | ' |
Net_Income_Per_Share_Calculati2
Net Income Per Share Calculations (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net Income Per Share Calculations | ' | ' | ' | ' |
Dilutive stock appreciation rights | 37,000 | 33,000 | 38,000 | 30,000 |
Stock Appreciation Rights | ' | ' | ' | ' |
Net Income Per Share Calculations | ' | ' | ' | ' |
Dilutive stock appreciation rights | ' | ' | 185,420 | 283,856 |
Net_Income_Per_Share_Calculati3
Net Income Per Share Calculations (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net Income Per Share Calculations | ' | ' | ' | ' |
Net Income available to common stockholders | $33,650 | $29,151 | $45,344 | $41,588 |
Weighted average common shares outstanding, basic | 47,803 | 47,737 | 47,787 | 45,927 |
Dilutive stock appreciation rights (treasury method) | 37 | 33 | 38 | 30 |
Weighted average common shares outstanding, dilutive | 47,840 | 47,770 | 47,825 | 45,957 |
Net Income per share - basic (in dollars per share) | $0.70 | $0.61 | $0.95 | $0.91 |
Net Income per share - diluted (in dollars per share) | $0.70 | $0.61 | $0.95 | $0.90 |
Pension_Plan_and_Other_Postret2
Pension Plan and Other Postretirement Benefits (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Pension plans | ' | ' | ' | ' |
Pension Plan and Other Postretirement Benefits | ' | ' | ' | ' |
Cash payments by the entity related to pension plans and other postretirement benefits | ' | ' | $14,000,000 | $23,400,000 |
Estimated cash contributions in the current fiscal year | ' | ' | 26,800,000 | ' |
Components of the pension plans and other postretirement benefits | ' | ' | ' | ' |
Service cost | 3,539,000 | 4,019,000 | 11,973,000 | 13,335,000 |
Interest cost | 4,737,000 | 4,140,000 | 14,190,000 | 12,266,000 |
Expected return on plan assets | -4,091,000 | -3,559,000 | -12,449,000 | -10,689,000 |
Amortization of prior service cost | 1,527,000 | 1,542,000 | 4,547,000 | 4,624,000 |
Recognized net actuarial loss | 1,002,000 | 2,404,000 | 3,008,000 | 6,852,000 |
Net periodic benefit cost | 6,714,000 | 8,546,000 | 21,269,000 | 26,388,000 |
Other Benefits | ' | ' | ' | ' |
Pension Plan and Other Postretirement Benefits | ' | ' | ' | ' |
Cash payments by the entity related to pension plans and other postretirement benefits | ' | ' | 2,400,000 | 4,700,000 |
Estimated cash contributions in the current fiscal year | ' | ' | 9,600,000 | ' |
Components of the pension plans and other postretirement benefits | ' | ' | ' | ' |
Service cost | 1,398,000 | 1,636,000 | 4,637,000 | 5,025,000 |
Interest cost | 1,321,000 | 1,121,000 | 3,995,000 | 3,339,000 |
Expected return on plan assets | -832,000 | -600,000 | -2,339,000 | -1,796,000 |
Recognized net initial APBO | ' | 3,000 | ' | 7,000 |
Amortization of prior service cost | 11,000 | 21,000 | 33,000 | 61,000 |
Recognized net actuarial loss | 656,000 | 961,000 | 2,206,000 | 2,794,000 |
Net periodic benefit cost | $2,554,000 | $3,142,000 | $8,532,000 | $9,430,000 |
Shortterm_and_Longterm_Borrowi1
Short-term and Long-term Borrowings (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 29, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 29, 2011 | Jun. 29, 2011 |
In Millions, unless otherwise specified | Minimum | Maximum | LIBOR | LIBOR | LIBOR | California Water Service Group | Cal Water | ||||
Minimum | Maximum | ||||||||||
Short-term and Long-term Borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | $400 | ' | ' | ' | ' | ' | $100 | $300 |
Period within which borrowings are to be repaid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months |
Basis of interest rate | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | 0.73% | 0.95% | ' | ' |
Commitment fee (as a percent) | ' | ' | ' | ' | 0.08% | 0.13% | ' | ' | ' | ' | ' |
Amount outstanding under line of credit | $61.70 | $46.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average borrowing rate (as a percent) | 1.16% | ' | 2.20% | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | State | Federal | |
Income taxes | ' | ' | ' |
Net operating loss | ' | $106 | $67.10 |
Valuation allowance | 0 | ' | ' |
Unrecognized tax benefits | 7.3 | ' | ' |
Unrecognized tax benefits that, if recognized would impact effective tax rate | $1.60 | ' | ' |
Regulatory_Assets_and_Liabilit1
Regulatory Assets and Liabilities (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Aug. 14, 2014 | |
2009 GRC pension plan cost | ' | ' |
Balancing account disclosures | ' | ' |
Regulatory asset | $3,000,000 | ' |
Authorized amount of ratepayer refund | 6,300,000 | ' |
Conservation costs | ' | ' |
Balancing account disclosures | ' | ' |
Regulatory liabilities | 4,900,000 | ' |
2012 GRC pension plan cost | ' | ' |
Balancing account disclosures | ' | ' |
Regulatory liabilities | 3,500,000 | ' |
2012 GRC conservaion costs | ' | ' |
Balancing account disclosures | ' | ' |
Regulatory liabilities | 2,000,000 | ' |
Health care costs | ' | ' |
Balancing account disclosures | ' | ' |
Regulatory asset | 1,900,000 | ' |
Cal Water | ' | ' |
Balancing account disclosures | ' | ' |
Net regulatory receivable | ' | 30,600,000 |
Period over which ratepayer surcharges will be applied | '3 years | ' |
Interim rate memorandum account balance | 17,100,000 | ' |
Regulatory asset | 13,000,000 | ' |
Deferred revenues | $500,000 | ' |
Recovery from taxpayers (as a percent) | 85.00% | ' |
Refund of excess to ratepayers (as a percent) | 85.00% | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Commitments and Contingencies | ' | ' |
Contingency loss recognized liability | $2.70 | $1.30 |
Fair_Value_of_Financial_Assets2
Fair Value of Financial Assets and Liabilities (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value of Financial Assets and Liabilities | ' | ' |
Risk premium (as a percent) | 1.19% | ' |
Advances for construction | $182,172 | $183,393 |
Cost | ' | ' |
Fair Value of Financial Assets and Liabilities | ' | ' |
Long-term debt, including current maturities | 429,444 | 434,050 |
Advances for construction | 182,172 | 183,393 |
Total liabilities | 611,616 | 617,443 |
Total | ' | ' |
Fair Value of Financial Assets and Liabilities | ' | ' |
Long-term debt, including current maturities | 526,733 | 511,146 |
Advances for construction | 74,389 | 73,389 |
Total liabilities | 601,122 | 584,535 |
Level 2 | ' | ' |
Fair Value of Financial Assets and Liabilities | ' | ' |
Long-term debt, including current maturities | 526,733 | 511,146 |
Advances for construction | 74,389 | 73,389 |
Total liabilities | $601,122 | $584,535 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Statements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Apr. 17, 2009 | Nov. 17, 2010 |
In Millions, unless otherwise specified | Cal Water | Cal Water | All Other Subsidiaries | All Other Subsidiaries | First Mortgage Bonds, 5.875% due 2019 | First Mortgage Bonds, 5.500% due 2040 |
Cal Water | Cal Water | |||||
Long-term debt | ' | ' | ' | ' | ' | ' |
Debt issued | ' | ' | ' | ' | $100 | $100 |
Interest rate (as a percent) | ' | ' | ' | ' | 5.88% | 5.50% |
Ownership interest (as a percent) | 100.00% | 100.00% | 100.00% | 100.00% | ' | ' |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Statements (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Utility plant: | ' | ' | ' | ' |
Utility plant | $2,306,427 | $2,213,328 | ' | ' |
Less accumulated depreciation and amortization | -745,742 | -697,497 | ' | ' |
Net utility plant | 1,560,685 | 1,515,831 | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 29,485 | 27,506 | 48,847 | 38,790 |
Receivables and unbilled revenue | 127,391 | 98,089 | ' | ' |
Other current assets | 20,402 | 13,895 | ' | ' |
Total current assets | 177,278 | 139,490 | ' | ' |
Other assets: | ' | ' | ' | ' |
Regulatory assets | 277,476 | 251,681 | ' | ' |
Other assets | 53,641 | 52,853 | ' | ' |
Total other assets | 331,117 | 304,534 | ' | ' |
Total assets | 2,069,080 | 1,959,855 | ' | ' |
Capitalization: | ' | ' | ' | ' |
Common stockholders' equity | 622,282 | 598,756 | ' | ' |
Long-term debt, less current maturities | 422,825 | 426,142 | ' | ' |
Total capitalization | 1,045,107 | 1,024,898 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 6,619 | 7,908 | ' | ' |
Short-term borrowings | 61,715 | 46,815 | ' | ' |
Accounts payable | 71,867 | 55,087 | ' | ' |
Accrued expenses and other liabilities | 75,213 | 56,774 | ' | ' |
Total current liabilities | 215,414 | 166,584 | ' | ' |
Unamortized investment tax credits | 2,106 | 2,106 | ' | ' |
Deferred income taxes, net | 210,357 | 183,245 | ' | ' |
Pension and postretirement benefits other than pensions | 153,085 | 145,451 | ' | ' |
Regulatory and other liabilities | 91,713 | 86,455 | ' | ' |
Advances for construction | 182,172 | 183,393 | ' | ' |
Contributions in aid of construction | 169,126 | 167,723 | ' | ' |
Total capitalization and liabilities | 2,069,080 | 1,959,855 | ' | ' |
Consolidating Adjustments | ' | ' | ' | ' |
Utility plant: | ' | ' | ' | ' |
Utility plant | -7,197 | -7,197 | ' | ' |
Less accumulated depreciation and amortization | 1,695 | 1,615 | ' | ' |
Net utility plant | -5,502 | -5,582 | ' | ' |
Current assets: | ' | ' | ' | ' |
Receivables and unbilled revenue | -94 | -94 | ' | ' |
Receivables from affiliates | -23,314 | -22,502 | ' | ' |
Total current assets | -23,408 | -22,596 | ' | ' |
Other assets: | ' | ' | ' | ' |
Investments in affiliates | -633,705 | -565,347 | ' | ' |
Long-term affiliate notes receivable | -25,516 | -26,255 | ' | ' |
Other assets | -412 | -205 | ' | ' |
Total other assets | -659,633 | -591,807 | ' | ' |
Total assets | -688,543 | -619,985 | ' | ' |
Capitalization: | ' | ' | ' | ' |
Common stockholders' equity | -639,107 | -570,838 | ' | ' |
Affiliate long-term debt | -25,516 | -26,255 | ' | ' |
Total capitalization | -664,623 | -597,093 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Payables to affiliates | -23,314 | -22,502 | ' | ' |
Accrued expenses and other liabilities | -42 | ' | ' | ' |
Total current liabilities | -23,356 | -22,502 | ' | ' |
Deferred income taxes, net | -564 | -390 | ' | ' |
Total capitalization and liabilities | -688,543 | -619,985 | ' | ' |
Parent Company | ' | ' | ' | ' |
Utility plant: | ' | ' | ' | ' |
Utility plant | 1,318 | 1,318 | ' | ' |
Less accumulated depreciation and amortization | -320 | -164 | ' | ' |
Net utility plant | 998 | 1,154 | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 1,316 | 5,280 | 4,272 | 1,470 |
Receivables and unbilled revenue | -756 | -756 | ' | ' |
Receivables from affiliates | 22,242 | 16,747 | ' | ' |
Other current assets | 107 | ' | ' | ' |
Total current assets | 22,909 | 21,271 | ' | ' |
Other assets: | ' | ' | ' | ' |
Investments in affiliates | 633,705 | 565,347 | ' | ' |
Long-term affiliate notes receivable | 25,516 | 26,255 | ' | ' |
Other assets | 1,037 | 1,120 | ' | ' |
Total other assets | 660,258 | 592,722 | ' | ' |
Total assets | 684,165 | 615,147 | ' | ' |
Capitalization: | ' | ' | ' | ' |
Common stockholders' equity | 622,282 | 598,756 | ' | ' |
Total capitalization | 622,282 | 598,756 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Short-term borrowings | 61,715 | 16,815 | ' | ' |
Payables to affiliates | ' | 48 | ' | ' |
Accrued expenses and other liabilities | 168 | 107 | ' | ' |
Total current liabilities | 61,883 | 16,970 | ' | ' |
Deferred income taxes, net | ' | -579 | ' | ' |
Total capitalization and liabilities | 684,165 | 615,147 | ' | ' |
Cal Water | ' | ' | ' | ' |
Utility plant: | ' | ' | ' | ' |
Utility plant | 2,120,177 | 2,034,935 | ' | ' |
Less accumulated depreciation and amortization | -705,851 | -661,780 | ' | ' |
Net utility plant | 1,414,326 | 1,373,155 | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 26,218 | 20,790 | 42,545 | 34,609 |
Receivables and unbilled revenue | 118,265 | 90,008 | ' | ' |
Receivables from affiliates | 977 | 5,755 | ' | ' |
Other current assets | 19,078 | 13,011 | ' | ' |
Total current assets | 164,538 | 129,564 | ' | ' |
Other assets: | ' | ' | ' | ' |
Regulatory assets | 274,509 | 248,938 | ' | ' |
Other assets | 48,729 | 44,827 | ' | ' |
Total other assets | 323,238 | 293,765 | ' | ' |
Total assets | 1,902,102 | 1,796,484 | ' | ' |
Capitalization: | ' | ' | ' | ' |
Common stockholders' equity | 564,803 | 500,290 | ' | ' |
Long-term debt, less current maturities | 421,909 | 424,854 | ' | ' |
Total capitalization | 986,712 | 925,144 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 6,164 | 6,137 | ' | ' |
Short-term borrowings | ' | 30,000 | ' | ' |
Payables to affiliates | 1,813 | ' | ' | ' |
Accounts payable | 68,659 | 51,764 | ' | ' |
Accrued expenses and other liabilities | 71,269 | 55,346 | ' | ' |
Total current liabilities | 147,905 | 143,247 | ' | ' |
Unamortized investment tax credits | 2,106 | 2,106 | ' | ' |
Deferred income taxes, net | 206,552 | 179,870 | ' | ' |
Pension and postretirement benefits other than pensions | 153,085 | 145,451 | ' | ' |
Regulatory and other liabilities | 82,757 | 77,627 | ' | ' |
Advances for construction | 181,514 | 182,776 | ' | ' |
Contributions in aid of construction | 141,471 | 140,263 | ' | ' |
Total capitalization and liabilities | 1,902,102 | 1,796,484 | ' | ' |
All Other Subsidiaries | ' | ' | ' | ' |
Utility plant: | ' | ' | ' | ' |
Utility plant | 192,129 | 184,272 | ' | ' |
Less accumulated depreciation and amortization | -41,266 | -37,168 | ' | ' |
Net utility plant | 150,863 | 147,104 | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 1,951 | 1,436 | 2,030 | 2,711 |
Receivables and unbilled revenue | 9,976 | 8,931 | ' | ' |
Receivables from affiliates | 95 | ' | ' | ' |
Other current assets | 1,217 | 884 | ' | ' |
Total current assets | 13,239 | 11,251 | ' | ' |
Other assets: | ' | ' | ' | ' |
Regulatory assets | 2,967 | 2,743 | ' | ' |
Other assets | 4,287 | 7,111 | ' | ' |
Total other assets | 7,254 | 9,854 | ' | ' |
Total assets | 171,356 | 168,209 | ' | ' |
Capitalization: | ' | ' | ' | ' |
Common stockholders' equity | 74,304 | 70,548 | ' | ' |
Affiliate long-term debt | 25,516 | 26,255 | ' | ' |
Long-term debt, less current maturities | 916 | 1,288 | ' | ' |
Total capitalization | 100,736 | 98,091 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 455 | 1,771 | ' | ' |
Payables to affiliates | 21,501 | 22,454 | ' | ' |
Accounts payable | 3,208 | 3,323 | ' | ' |
Accrued expenses and other liabilities | 3,818 | 1,321 | ' | ' |
Total current liabilities | 28,982 | 28,869 | ' | ' |
Deferred income taxes, net | 4,369 | 4,344 | ' | ' |
Regulatory and other liabilities | 8,956 | 8,828 | ' | ' |
Advances for construction | 658 | 617 | ' | ' |
Contributions in aid of construction | 27,655 | 27,460 | ' | ' |
Total capitalization and liabilities | $171,356 | $168,209 | ' | ' |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Statements (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Consolidating Financial Statements | ' | ' | ' | ' |
Operating revenue | $191,184 | $184,404 | $460,115 | $450,403 |
Operations: | ' | ' | ' | ' |
Water production costs | 66,980 | 70,614 | 174,297 | 171,956 |
Administrative and general | 23,765 | 24,670 | 72,702 | 73,106 |
Other | 15,692 | 17,657 | 48,072 | 50,332 |
Maintenance | 4,800 | 4,575 | 14,793 | 12,896 |
Depreciation and amortization | 14,648 | 14,505 | 46,788 | 43,625 |
Income tax (benefit) expense | 19,233 | 11,165 | 22,584 | 19,567 |
Taxes other than income taxes | 5,232 | 5,414 | 15,601 | 16,564 |
Total operating expenses | 150,350 | 148,600 | 394,837 | 388,046 |
Net operating income | 40,834 | 35,804 | 65,278 | 62,357 |
Other Income and Expenses: | ' | ' | ' | ' |
Non-regulated revenue | 4,409 | 3,649 | 12,163 | 10,386 |
Non-regulated expenses, net | -4,812 | -2,825 | -11,184 | -8,482 |
Income tax (expense) on other income and expense | 169 | -330 | -391 | -765 |
Net other (loss) income | -234 | 494 | 588 | 1,139 |
Interest: | ' | ' | ' | ' |
Interest expense | 7,221 | 7,687 | 21,373 | 23,527 |
Less: capitalized interest | -271 | -540 | -851 | -1,619 |
Net interest expense | 6,950 | 7,147 | 20,522 | 21,908 |
Net Income | 33,650 | 29,151 | 45,344 | 41,588 |
Consolidating Adjustments | ' | ' | ' | ' |
Operations: | ' | ' | ' | ' |
Other | -126 | -126 | -378 | -378 |
Depreciation and amortization | -27 | -28 | -80 | -84 |
Income tax (benefit) expense | 287 | 354 | 741 | 1,070 |
Total operating expenses | 134 | 200 | 283 | 608 |
Net operating income | -134 | -200 | -283 | -608 |
Other Income and Expenses: | ' | ' | ' | ' |
Non-regulated revenue | -512 | -783 | -1,659 | -2,340 |
Income tax (expense) on other income and expense | 276 | 342 | 708 | 1,035 |
Net other (loss) income | -236 | -441 | -951 | -1,305 |
Interest: | ' | ' | ' | ' |
Interest expense | -385 | -658 | -1,281 | -1,963 |
Net interest expense | -385 | -658 | -1,281 | -1,963 |
Equity earnings of subsidiaries | -33,499 | -28,838 | -44,803 | -40,916 |
Net Income | -33,484 | -28,821 | -44,756 | -40,866 |
Parent Company | ' | ' | ' | ' |
Operations: | ' | ' | ' | ' |
Administrative and general | 34 | ' | 67 | ' |
Depreciation and amortization | 57 | 14 | 157 | 42 |
Income tax (benefit) expense | -79 | -17 | -184 | -246 |
Total operating expenses | 12 | -3 | 40 | -204 |
Net operating income | -12 | 3 | -40 | 204 |
Other Income and Expenses: | ' | ' | ' | ' |
Non-regulated revenue | 448 | 572 | 1,365 | 1,739 |
Income tax (expense) on other income and expense | -182 | -232 | -556 | -708 |
Net other (loss) income | 266 | 340 | 809 | 1,031 |
Interest: | ' | ' | ' | ' |
Interest expense | 103 | 30 | 228 | 563 |
Net interest expense | 103 | 30 | 228 | 563 |
Equity earnings of subsidiaries | 33,499 | 28,838 | 44,803 | 40,916 |
Net Income | 33,650 | 29,151 | 45,344 | 41,588 |
Cal Water | ' | ' | ' | ' |
Condensed Consolidating Financial Statements | ' | ' | ' | ' |
Operating revenue | 180,768 | 174,699 | 434,857 | 425,860 |
Operations: | ' | ' | ' | ' |
Water production costs | 64,332 | 67,981 | 167,214 | 164,524 |
Administrative and general | 21,282 | 22,354 | 65,144 | 65,423 |
Other | 14,161 | 15,883 | 43,186 | 45,490 |
Maintenance | 4,620 | 4,382 | 14,276 | 12,376 |
Depreciation and amortization | 13,692 | 13,714 | 43,607 | 41,168 |
Income tax (benefit) expense | 18,632 | 10,721 | 22,713 | 19,807 |
Taxes other than income taxes | 4,409 | 4,680 | 13,552 | 14,549 |
Total operating expenses | 141,128 | 139,715 | 369,692 | 363,337 |
Net operating income | 39,640 | 34,984 | 65,165 | 62,523 |
Other Income and Expenses: | ' | ' | ' | ' |
Non-regulated revenue | 4,027 | 3,385 | 11,264 | 9,572 |
Non-regulated expenses, net | -4,538 | -2,515 | -10,286 | -7,308 |
Income tax (expense) on other income and expense | 207 | -355 | -399 | -923 |
Net other (loss) income | -304 | 515 | 579 | 1,341 |
Interest: | ' | ' | ' | ' |
Interest expense | 7,030 | 7,608 | 20,974 | 22,966 |
Less: capitalized interest | -252 | -495 | -790 | -1,279 |
Net interest expense | 6,778 | 7,113 | 20,184 | 21,687 |
Net Income | 32,558 | 28,386 | 45,560 | 42,177 |
All Other Subsidiaries | ' | ' | ' | ' |
Condensed Consolidating Financial Statements | ' | ' | ' | ' |
Operating revenue | 10,416 | 9,705 | 25,258 | 24,543 |
Operations: | ' | ' | ' | ' |
Water production costs | 2,648 | 2,633 | 7,083 | 7,432 |
Administrative and general | 2,449 | 2,316 | 7,491 | 7,683 |
Other | 1,657 | 1,900 | 5,264 | 5,220 |
Maintenance | 180 | 193 | 517 | 520 |
Depreciation and amortization | 926 | 805 | 3,104 | 2,499 |
Income tax (benefit) expense | 393 | 107 | -686 | -1,064 |
Taxes other than income taxes | 823 | 734 | 2,049 | 2,015 |
Total operating expenses | 9,076 | 8,688 | 24,822 | 24,305 |
Net operating income | 1,340 | 1,017 | 436 | 238 |
Other Income and Expenses: | ' | ' | ' | ' |
Non-regulated revenue | 446 | 475 | 1,193 | 1,415 |
Non-regulated expenses, net | -274 | -310 | -898 | -1,174 |
Income tax (expense) on other income and expense | -132 | -85 | -144 | -169 |
Net other (loss) income | 40 | 80 | 151 | 72 |
Interest: | ' | ' | ' | ' |
Interest expense | 473 | 707 | 1,452 | 1,961 |
Less: capitalized interest | -19 | -45 | -61 | -340 |
Net interest expense | 454 | 662 | 1,391 | 1,621 |
Net Income | $926 | $435 | ($804) | ($1,311) |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Statements (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities: | ' | ' | ' | ' |
Net income | $33,650 | $29,151 | $45,344 | $41,588 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 48,481 | 45,067 |
Changes in value of life insurance contracts | ' | ' | -501 | -1,147 |
Other changes in noncurrent assets and liabilities | ' | ' | 13,340 | 13,501 |
Changes in operating assets and liabilities | ' | ' | -6,497 | 2,890 |
Net cash provided by operating activities | ' | ' | 100,167 | 101,899 |
Investing activities: | ' | ' | ' | ' |
Utility plant expenditures | ' | ' | -86,258 | -94,782 |
Purchase of life insurance contracts | ' | ' | -3,207 | -3,204 |
Changes in restricted cash and other changes, net | ' | ' | 354 | 1,148 |
Net cash used in investing activities | ' | ' | -89,111 | -96,838 |
Financing Activities: | ' | ' | ' | ' |
Short-term borrowings | ' | ' | 99,900 | 35,315 |
Repayment of short-term borrowings | ' | ' | -85,000 | -113,275 |
Proceeds from long-term debt | ' | ' | ' | 48 |
Repayment of long-term debt | ' | ' | -4,604 | -3,058 |
Advances and contributions in aid for construction | ' | ' | 8,780 | 7,577 |
Refunds of advances for construction | ' | ' | -4,858 | -5,230 |
Dividends paid to non-affiliates | ' | ' | -23,295 | -21,981 |
Issuance of common stock, net | ' | ' | ' | 105,600 |
Net cash (used in) provided by financing activities | ' | ' | -9,077 | 4,996 |
Change in cash and cash equivalents | ' | ' | 1,979 | 10,057 |
Cash and cash equivalents at beginning of period | ' | ' | 27,506 | 38,790 |
Cash and cash equivalents at end of period | 29,485 | 48,847 | 29,485 | 48,847 |
Consolidating Adjustments | ' | ' | ' | ' |
Operating activities: | ' | ' | ' | ' |
Net income | -33,484 | -28,821 | -44,756 | -40,866 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Equity earnings of subsidiaries | 33,499 | 28,838 | 44,803 | 40,916 |
Dividends received from affiliates | ' | ' | -23,295 | -21,981 |
Depreciation and amortization | ' | ' | -80 | -84 |
Other changes in noncurrent assets and liabilities | ' | ' | 33 | -49 |
Changes in operating assets and liabilities | ' | ' | ' | 83 |
Net cash provided by operating activities | ' | ' | -23,295 | -21,981 |
Investing activities: | ' | ' | ' | ' |
Investment in affiliates | ' | ' | 46,850 | 35,000 |
Net changes in affiliate advances | ' | ' | 877 | 10,801 |
Repayment of affiliates long-term debt | ' | ' | ' | -8,710 |
Proceeds from affiliates long-term debt | ' | ' | -699 | ' |
Net cash used in investing activities | ' | ' | 47,028 | 37,091 |
Financing Activities: | ' | ' | ' | ' |
Net changes in affiliate advances | ' | ' | -877 | -10,801 |
Repayment of affiliates long-term borrowings | ' | ' | 699 | 8,710 |
Dividends paid to affiliates | ' | ' | 23,295 | 21,981 |
Investment from affiliates | ' | ' | -46,850 | -35,000 |
Net cash (used in) provided by financing activities | ' | ' | -23,733 | -15,110 |
Parent Company | ' | ' | ' | ' |
Operating activities: | ' | ' | ' | ' |
Net income | 33,650 | 29,151 | 45,344 | 41,588 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Equity earnings of subsidiaries | -33,499 | -28,838 | -44,803 | -40,916 |
Dividends received from affiliates | ' | ' | 23,295 | 21,981 |
Depreciation and amortization | ' | ' | 157 | 42 |
Other changes in noncurrent assets and liabilities | ' | ' | 2,160 | 1,164 |
Changes in operating assets and liabilities | ' | ' | -68 | 390 |
Net cash provided by operating activities | ' | ' | 26,085 | 24,249 |
Investing activities: | ' | ' | ' | ' |
Utility plant expenditures | ' | ' | ' | -640 |
Investment in affiliates | ' | ' | -46,850 | -35,000 |
Net changes in affiliate advances | ' | ' | -5,455 | -9,583 |
Repayment of affiliates long-term debt | ' | ' | ' | 913 |
Proceeds from affiliates long-term debt | ' | ' | 699 | ' |
Net cash used in investing activities | ' | ' | -51,606 | -44,310 |
Financing Activities: | ' | ' | ' | ' |
Short-term borrowings | ' | ' | 64,900 | 15,315 |
Repayment of short-term borrowings | ' | ' | -20,000 | -68,275 |
Net changes in affiliate advances | ' | ' | -48 | ' |
Repayment of affiliates long-term borrowings | ' | ' | ' | -7,796 |
Dividends paid to non-affiliates | ' | ' | -23,295 | -21,981 |
Issuance of common stock, net | ' | ' | ' | 105,600 |
Net cash (used in) provided by financing activities | ' | ' | 21,557 | 22,863 |
Change in cash and cash equivalents | ' | ' | -3,964 | 2,802 |
Cash and cash equivalents at beginning of period | ' | ' | 5,280 | 1,470 |
Cash and cash equivalents at end of period | 1,316 | 4,272 | 1,316 | 4,272 |
Cal Water | ' | ' | ' | ' |
Operating activities: | ' | ' | ' | ' |
Net income | 32,558 | 28,386 | 45,560 | 42,177 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 45,059 | 42,509 |
Changes in value of life insurance contracts | ' | ' | -501 | -1,147 |
Other changes in noncurrent assets and liabilities | ' | ' | 11,539 | 12,415 |
Changes in operating assets and liabilities | ' | ' | -7,969 | 4,220 |
Net cash provided by operating activities | ' | ' | 93,688 | 100,174 |
Investing activities: | ' | ' | ' | ' |
Utility plant expenditures | ' | ' | -81,505 | -84,688 |
Net changes in affiliate advances | ' | ' | 4,778 | -2,359 |
Repayment of affiliates long-term debt | ' | ' | ' | 7,797 |
Purchase of life insurance contracts | ' | ' | -3,207 | -3,204 |
Changes in restricted cash and other changes, net | ' | ' | 354 | 1,148 |
Net cash used in investing activities | ' | ' | -79,580 | -81,306 |
Financing Activities: | ' | ' | ' | ' |
Short-term borrowings | ' | ' | 35,000 | 20,000 |
Repayment of short-term borrowings | ' | ' | -65,000 | -45,000 |
Net changes in affiliate advances | ' | ' | 1,814 | -972 |
Repayment of long-term debt | ' | ' | -2,919 | -2,531 |
Advances and contributions in aid for construction | ' | ' | 8,239 | 7,545 |
Refunds of advances for construction | ' | ' | -4,809 | -5,184 |
Dividends paid to affiliates | ' | ' | -23,005 | -19,790 |
Investment from affiliates | ' | ' | 42,000 | 35,000 |
Net cash (used in) provided by financing activities | ' | ' | -8,680 | -10,932 |
Change in cash and cash equivalents | ' | ' | 5,428 | 7,936 |
Cash and cash equivalents at beginning of period | ' | ' | 20,790 | 34,609 |
Cash and cash equivalents at end of period | 26,218 | 42,545 | 26,218 | 42,545 |
All Other Subsidiaries | ' | ' | ' | ' |
Operating activities: | ' | ' | ' | ' |
Net income | 926 | 435 | -804 | -1,311 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 3,345 | 2,600 |
Other changes in noncurrent assets and liabilities | ' | ' | -392 | -29 |
Changes in operating assets and liabilities | ' | ' | 1,540 | -1,803 |
Net cash provided by operating activities | ' | ' | 3,689 | -543 |
Investing activities: | ' | ' | ' | ' |
Utility plant expenditures | ' | ' | -4,753 | -9,454 |
Net changes in affiliate advances | ' | ' | -200 | 1,141 |
Net cash used in investing activities | ' | ' | -4,953 | -8,313 |
Financing Activities: | ' | ' | ' | ' |
Proceeds from long-term debt | ' | ' | ' | 48 |
Net changes in affiliate advances | ' | ' | -889 | 11,773 |
Repayment of affiliates long-term borrowings | ' | ' | -699 | -914 |
Repayment of long-term debt | ' | ' | -1,685 | -527 |
Advances and contributions in aid for construction | ' | ' | 541 | 32 |
Refunds of advances for construction | ' | ' | -49 | -46 |
Dividends paid to affiliates | ' | ' | -290 | -2,191 |
Investment from affiliates | ' | ' | 4,850 | ' |
Net cash (used in) provided by financing activities | ' | ' | 1,779 | 8,175 |
Change in cash and cash equivalents | ' | ' | 515 | -681 |
Cash and cash equivalents at beginning of period | ' | ' | 1,436 | 2,711 |
Cash and cash equivalents at end of period | $1,951 | $2,030 | $1,951 | $2,030 |