Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 07, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | YORK WATER CO | ||
Entity Central Index Key | 108,985 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 268,720,487 | ||
Entity Common Stock, Shares Outstanding | 12,826,147 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
UTILITY PLANT, at original cost | $ 329,415 | $ 316,525 |
Plant acquisition adjustments | (3,724) | (3,522) |
Accumulated depreciation | (64,271) | (59,809) |
Net utility plant | 261,420 | 253,194 |
OTHER PHYSICAL PROPERTY: | ||
Net of accumulated depreciation of $329 in 2015 and $286 in 2014 | 769 | 765 |
CURRENT ASSETS: | ||
Cash and cash equivalents | 2,879 | 1,488 |
Restricted cash | 0 | 7 |
Accounts receivable, net of reserves of $315 in 2015 and $325 in 2014 | 3,535 | 3,991 |
Unbilled revenues | 2,614 | 2,377 |
Recoverable income taxes | 1,049 | 957 |
Materials and supplies inventories, at cost | 771 | 771 |
Prepaid expenses | 729 | 584 |
Deferred income taxes | 215 | 1,058 |
Total current assets | 11,792 | 11,233 |
OTHER LONG-TERM ASSETS: | ||
Deferred debt expense | 2,743 | 2,573 |
Notes receivable | 255 | 266 |
Deferred regulatory assets | 32,996 | 32,614 |
Other assets | 3,516 | 3,694 |
Total other long-term assets | 39,510 | 39,147 |
Total Assets | 313,491 | 304,339 |
COMMON STOCKHOLDERS' EQUITY: | ||
Common stock, no par value, authorized 46,500,000 shares, issued and outstanding 12,812,377 shares in 2015 and 12,830,521 shares in 2014 | 77,317 | 77,556 |
Retained earnings | 31,753 | 27,007 |
Total common stockholders' equity | 109,070 | 104,563 |
PREFERRED STOCK, authorized 500,000 shares, no shares issued | 0 | 0 |
LONG-TERM DEBT, excluding current portion | $ 87,261 | $ 84,842 |
COMMITMENTS | ||
CURRENT LIABILITIES: | ||
Current portion of long-term debt | $ 44 | $ 43 |
Accounts payable | 1,772 | 1,589 |
Dividends payable | 1,708 | 1,647 |
Accrued compensation and benefits | 1,174 | 1,078 |
Accrued interest | 976 | 1,027 |
Other accrued expenses | 523 | 546 |
Total current liabilities | 6,197 | 5,930 |
DEFERRED CREDITS: | ||
Customers' advances for construction | 7,500 | 10,712 |
Deferred income taxes | 50,495 | 46,024 |
Deferred employee benefits | 11,079 | 13,727 |
Other deferred credits | 6,959 | 7,489 |
Total deferred credits | 76,033 | 77,952 |
Contributions in aid of construction | 34,930 | 31,052 |
Total Stockholders' Equity and Liabilities | $ 313,491 | $ 304,339 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
OTHER PHYSICAL PROPERTY: | ||
Other physical property, accumulated depreciation | $ 329 | $ 286 |
CURRENT ASSETS: | ||
Receivables, reserves | $ 315 | $ 325 |
COMMON STOCKHOLDERS' EQUITY: | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 46,500,000 | 46,500,000 |
Common stock, issued (in shares) | 12,812,377 | 12,830,521 |
Common stock, outstanding (in shares) | 12,812,377 | 12,830,521 |
Preferred stock, authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Statements of Income
Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING REVENUES: | |||
Residential | $ 29,682 | $ 29,079 | $ 26,796 |
Commercial and industrial | 13,822 | 13,267 | 12,299 |
Other | 3,585 | 3,554 | 3,288 |
Operating revenues | 47,089 | 45,900 | 42,383 |
OPERATING EXPENSES: | |||
Operation and maintenance | 8,066 | 7,968 | 7,350 |
Administrative and general | 9,082 | 8,812 | 7,406 |
Depreciation and amortization | 6,151 | 5,932 | 5,744 |
Taxes other than income taxes | 1,129 | 1,111 | 1,122 |
Operating expenses | 24,428 | 23,823 | 21,622 |
Operating income | 22,661 | 22,077 | 20,761 |
OTHER INCOME (EXPENSES): | |||
Interest on debt | (5,053) | (5,087) | (5,244) |
Allowance for funds used during construction | 206 | 210 | 82 |
Gain on sale of land | 0 | 316 | 0 |
Other income (expenses), net | (585) | (1,155) | (133) |
Other income (expenses) | (5,432) | (5,716) | (5,295) |
Income before income taxes | 17,229 | 16,361 | 15,466 |
Income taxes | 4,740 | 4,877 | 5,812 |
Net Income | $ 12,489 | $ 11,484 | $ 9,654 |
Basic Earnings Per Share (in dollars per share) | $ 0.97 | $ 0.89 | $ 0.75 |
Cash Dividends Declared Per Share (in shares) | $ 0.6040 | $ 0.5788 | $ 0.5580 |
Statements of Common Stockholde
Statements of Common Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2012 | $ 79,299 | $ 20,526 | $ 99,825 |
Balance (in shares) at Dec. 31, 2012 | 12,918,633 | ||
Net income | $ 0 | 9,654 | 9,654 |
Dividends | 0 | (7,214) | (7,214) |
Retirement of common stock | $ (1,772) | 0 | $ (1,772) |
Retirement of common stock (in shares) | (94,414) | (94,414) | |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | $ 3,018 | 0 | $ 3,018 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 155,062 | ||
Balance at Dec. 31, 2013 | $ 80,545 | 22,966 | 103,511 |
Balance (in shares) at Dec. 31, 2013 | 12,979,281 | ||
Net income | $ 0 | 11,484 | 11,484 |
Dividends | 0 | (7,443) | (7,443) |
Retirement of common stock | $ (5,692) | 0 | $ (5,692) |
Retirement of common stock (in shares) | (282,570) | (282,570) | |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | $ 2,703 | 0 | $ 2,703 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 133,810 | ||
Balance at Dec. 31, 2014 | $ 77,556 | 27,007 | $ 104,563 |
Balance (in shares) at Dec. 31, 2014 | 12,830,521 | 12,830,521 | |
Net income | $ 0 | 12,489 | $ 12,489 |
Dividends | 0 | (7,743) | (7,743) |
Retirement of common stock | $ (2,546) | 0 | $ (2,546) |
Retirement of common stock (in shares) | (121,012) | (121,012) | |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | $ 2,307 | 0 | $ 2,307 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 102,868 | ||
Balance at Dec. 31, 2015 | $ 77,317 | $ 31,753 | $ 109,070 |
Balance (in shares) at Dec. 31, 2015 | 12,812,377 | 12,812,377 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 12,489 | $ 11,484 | $ 9,654 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on sale of land | 0 | (316) | 0 |
Depreciation and amortization | 6,151 | 5,932 | 5,744 |
Increase in deferred income taxes | 2,270 | 4,753 | 1,939 |
Other | 189 | 199 | 213 |
Changes in assets and liabilities: | |||
(Increase) decrease in accounts receivable and unbilled revenues | (73) | (632) | 11 |
Increase in recoverable income taxes | (92) | (957) | 0 |
Increase in materials and supplies, prepaid expenses, regulatory and other assets | (2,339) | (11,438) | (1,056) |
Increase in accounts payable, accrued compensation and benefits, accrued expenses, deferred employee benefits, and other deferred credits | 2,166 | 11,502 | 306 |
Increase (decrease) in accrued interest and taxes | (51) | (1,761) | 1,627 |
Net cash provided by operating activities | 20,710 | 18,766 | 18,438 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Utility plant additions, including debt portion of allowance for funds used during construction of $115 in 2015, $117 in 2014 and $46 in 2013 | (13,844) | (14,139) | (9,852) |
Acquisitions of water and wastewater systems | (352) | (369) | (28) |
Proceeds from sale of land | 0 | 346 | 0 |
Decrease in compensating balance | 0 | 0 | 500 |
Decrease in notes receivable | 11 | 40 | 32 |
Net cash used in investing activities | (14,185) | (14,122) | (9,348) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Customers' advances for construction and contributions in aid of construction | 1,117 | 638 | 733 |
Repayments of customer advances | (447) | (419) | (313) |
Proceeds of long-term debt issues | 14,301 | 14,880 | 0 |
Debt issuance costs | (298) | (506) | 0 |
Repayments of long-term debt | (11,886) | (14,923) | (47) |
Repurchase of common stock | (2,546) | (5,692) | (1,772) |
Issuance of common stock | 2,307 | 2,703 | 3,018 |
Dividends paid | (7,682) | (7,402) | (7,156) |
Net cash used in financing activities | (5,134) | (10,721) | (5,537) |
Net change in cash and cash equivalents | 1,391 | (6,077) | 3,553 |
Cash and cash equivalents at beginning of period | 1,488 | 7,565 | 4,012 |
Cash and cash equivalents at end of period | 2,879 | 1,488 | 7,565 |
Cash paid during the period for: | |||
Interest, net of amounts capitalized | 4,985 | 5,007 | 5,198 |
Income taxes | $ 2,155 | $ 2,808 | $ 1,921 |
Supplemental schedule of non-cash investing and financing activities: | |||
Accounts payable includes $720 in 2015, $833 in 2014 and $974 in 2013 for the construction of utility plant. |
Statements of Cash Flows (Paren
Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Utility plant additions, debt portion of allowance for funds used during construction | $ 115 | $ 117 | $ 46 |
Supplemental schedule of non-cash investing and financing activities: | |||
Accounts payable, construction of utility plant | $ 720 | $ 833 | $ 974 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies The primary business of The York Water Company is to impound, purify and distribute water. The Company also operates two wastewater collection and treatment systems. The Company operates within its franchised territory located in York and Adams Counties, Pennsylvania, and is subject to regulation by the Pennsylvania Public Utility Commission, or PPUC. The following summarizes the significant accounting policies employed by The York Water Company. Utility Plant and Depreciation The cost of additions includes contracted cost, direct labor and fringe benefits, materials, overhead and, for certain utility plant, allowance for funds used during construction. In accordance with regulatory accounting requirements, water and wastewater systems acquired are recorded at estimated original cost of utility plant when first devoted to utility service and the applicable depreciation is recorded to accumulated depreciation. The difference between the estimated original cost less applicable accumulated depreciation, and the purchase price and acquisition costs is recorded as an acquisition adjustment within utility plant as permitted by the PPUC. At December 31, 2015 and 2014, utility plant includes a net credit acquisition adjustment of $3,724 and $3,522, respectively. For those amounts approved by the PPUC, the net acquisition adjustment is being amortized over the remaining life of the respective assets. Certain amounts are still awaiting approval from the PPUC before amortization will commence. Amortization amounted to $58 in 2015, $54 in 2014, and $50 in 2013. Upon normal retirement of depreciable property, the estimated or actual cost of the asset is credited to the utility plant account, and such amounts, together with the cost of removal less salvage value, are charged to the reserve for depreciation. To the extent the Company recovers cost of removal or other retirement costs through rates after the retirement costs are incurred, a regulatory asset is reported. Gains or losses from abnormal retirements are reflected in income currently. The straight-line remaining life method is used to compute depreciation on utility plant cost, exclusive of land and land rights. Annual provisions for depreciation of transportation and mechanical equipment included in utility plant are computed on a straight-line basis over the estimated service lives. Such provisions are charged to clearing accounts and apportioned therefrom to operating expenses and other accounts in accordance with the Uniform System of Accounts as prescribed by the PPUC. The Company charges to maintenance expense the cost of repairs and replacements and renewals of minor items of property. Maintenance of transportation equipment is charged to clearing accounts and apportioned therefrom in a manner similar to depreciation. The cost of replacements, renewals and betterments of units of property is capitalized to the utility plant accounts. The following remaining lives are used for financial reporting purposes: December 31, Approximate range Utility Plant Asset Category 2015 2014 of remaining lives Mains and accessories $ 170,991 $ 164,627 10 – 83 years Services, meters and hydrants 66,267 63,479 19 – 55 years Operations structures, reservoirs and water tanks 44,739 43,654 12 – 38 years Pumping and treatment equipment 27,664 25,616 3 – 34 years Office, transportation and operating equipment 11,725 11,216 3 – 21 years Land and other non-depreciable assets 3,172 3,166 - Utility plant in service 324,558 311,758 Construction work in progress 4,857 4,767 - Total Utility Plant $ 329,415 $ 316,525 The effective rate of depreciation was 2.24% in 2015, 2.26% in 2014, and 2.28% in 2013 on average utility plant, net of customers' advances and contributions. Larger depreciation provisions resulting from allowable accelerated methods are deducted for tax purposes. Cash and Cash Equivalents For the purposes of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents except for those instruments earmarked to fund construction expenditures or repay long-term debt. The Company periodically maintains cash balances in major financial institutions in excess of the federally insured limit by the Federal Deposit Insurance Corporation (FDIC). The Company has not experienced any losses and believes it is not exposed to any significant credit risk on cash and cash equivalents. Restricted Cash The Company served as the custodian for an escrow account that was used to rehabilitate a neighborhood within the service territory of the Company. The deposits made by various community organizations were classified as restricted cash on the balance sheets of the Company. The project was completed and the remaining cash was disbursed in 2015. In 2012, the Company had a compensating balance requirement for one of its lines of credit which was recorded as Restricted Cash – compensating balance. This requirement was removed in 2013. Accounts Receivable Accounts receivable are stated at outstanding balances, less a reserve for doubtful accounts. The reserve for doubtful accounts is established through provisions charged against income. Accounts deemed to be uncollectible are charged against the reserve and subsequent recoveries, if any, are credited to the reserve. The reserve for doubtful accounts is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management's periodic evaluation of the adequacy of the reserve is based on past experience, agings of the receivables, adverse situations that may affect a customer's ability to pay, current economic conditions, and other relevant factors. This evaluation is inherently subjective. Unpaid balances remaining after the stated payment terms are considered past due. Revenue Recognition Operating revenues include amounts billed to water customers on a cycle basis and unbilled amounts based on actual and estimated usage from the latest meter reading to the end of the accounting period. Operating revenues also include amounts billed to wastewater customers as either a flat monthly fee or a metered rate based on water consumption. The metered wastewater revenue includes actual and estimated usage from the latest meter reading to the end of the accounting period. Materials and Supplies Inventories Materials and supplies inventories are stated at cost. Costs are determined using the average cost method. Deferred Debt Expense Deferred debt expense is amortized on a straight-line basis over the term of the related debt. Notes Receivable Notes receivable are recorded at cost and represent amounts due from various municipalities for construction of water mains in their particular municipality. Management, considering current information and events regarding the borrowers' ability to repay their obligations, considers a note to be impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the note agreement. When a note is considered to be impaired, the carrying value of the note is written down. The amount of the impairment is measured based on the present value of expected future cash flows discounted at the note's effective interest rate. Regulatory Assets and Liabilities The Company is subject to the provisions of generally accepted accounting principles regarding rate-regulated entities. The accounting standards provide for the recognition of regulatory assets and liabilities as allowed by regulators for costs or credits that are reflected in current customer rates or are considered probable of being included in future rates. The regulatory assets or liabilities are then relieved as the cost or credit is reflected in rates. Regulatory assets represent costs that are expected to be fully recovered from customers in future rates while regulatory liabilities represent amounts that are expected to be refunded to customers in future rates. These deferred costs have been excluded from the Company's rate base and, therefore, no return is being earned on the unamortized balances. Regulatory assets and liabilities are comprised of the following: December 31, Remaining Recovery 2015 2014 Periods Assets Income taxes $ 18,389 $ 15,800 Various Postretirement benefits 9,819 12,493 5 – 10 years Unrealized swap losses 2,481 2,561 1 – 14 years Utility plant retirement costs 2,247 1,561 5 years Service life study expenses 3 5 2 years Rate case filing expenses 57 194 1 years 32,996 32,614 Liabilities IRS TPR catch-up deduction 3,887 4,314 Not yet known Income taxes 776 806 1 – 50 years $ 4,663 $ 5,120 The regulatory asset for income taxes include (a) deferred state income taxes related primarily to differences between book and tax depreciation expense, (b) deferred income taxes related to the differences that arise between specific asset improvement costs capitalized for book purposes and deducted as a repair expense for tax purposes, and (c) deferred income taxes associated with the gross-up of revenues related to the differences. These assets are recognized for ratemaking purposes on a cash or flow-through basis and will be recovered in rates as they reverse. Postretirement benefits include the difference between contributions and deferred pension expense and the underfunded status of the pension plans. The underfunded status represents the difference between the projected benefit obligation and the fair market value of the assets. This asset is expected to be recovered in future years as additional contributions are made or market conditions improve. The recovery period is dependent on contributions made to the plans, plan asset performance and the discount rate used to value the obligations. The period is estimated at between 5 and 10 years. The Company uses regulatory accounting treatment to defer the mark-to-market unrealized gains and losses on its interest rate swap to reflect that the gain or loss is included in the ratemaking formula when the transaction actually settles. The value of the swap as of the balance sheet date is recorded as part of other deferred credits. Realized gains or losses on the swap will be recorded as interest expense in the statement of income over its remaining life of 14 years. Utility plant retirement costs, including cost of removal, represents costs already incurred which are expected to be recovered over a five-year period in rates, through depreciation expense. Service life study and rate case filing expenses are deferred and amortized over their remaining lives of two and one years, respectively. The regulatory liability for the Internal Revenue Service, or IRS, tangible property regulations, or TPR, catch-up deduction represents the tax benefits realized on the Company's 2014 income tax return for qualifying capital expenditures made prior to 2014. In 2015, upon final determination of the TPR amounts for its income tax return, the Company reclassified the portion of TPR related to dispositions to deferred taxes and deferred tax liabilities in compliance with the IRS regulations. The Company will seek approval from the PPUC in its next rate filing to amortize the remaining catch-up deduction. The regulatory liability for income taxes relates mainly to deferred investment tax credits, and additionally to deferred taxes related to postretirement death benefits and bad debts. These liabilities will be given back to customers in rates as tax deductions occur over the next 1-50 years. Regulatory liabilities are part of other accrued expenses and other deferred credits on the balance sheets. Other Assets Other assets consist mainly of the cash value of life insurance policies held as an investment by the Company for reimbursement of costs and benefits associated with its supplemental retirement and deferred compensation programs. Customers' Advances for Construction Customer advances are cash payments from developers, municipalities, customers or builders for construction of utility plant, and are refundable upon completion of construction, as operating revenues are earned. If the Company loans funds for construction to the customer, the refund amount is credited to the note receivable rather than paid out in cash. After all refunds to which the customer is entitled are made, any remaining balance is transferred to contributions in aid of construction. From 1986 to 1996 when customer advances were taxable income to the Company, additional funds were collected from customers to cover the taxes. Those funds were recorded as a liability within Customer Advances for Construction and are being amortized as deferred income over the tax life of the underlying assets. Contributions in Aid of Construction Contributions in Aid of Construction is composed of (i) direct, non-refundable contributions from developers, customers or builders for construction of water infrastructure and (ii) customer advances that have become non-refundable. Contributions in aid of construction are deducted from the Company's rate base, and therefore, no return is earned on property financed with contributions. The PPUC requires that contributions received remain on the Company's balance sheets indefinitely as a long-term liability. Interest Rate Swap Agreement The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is interest rate risk. The Company utilizes an interest rate swap agreement to convert its variable-rate debt to a fixed rate. Interest rate swaps are contracts in which a series of interest rate cash flows are exchanged over a prescribed period. The notional amount on which the interest payments are based is not exchanged. The Company has designated the interest rate swap agreement as a cash flow hedge, classified as a financial derivative used for non-trading activities. The accounting standards regarding accounting for derivatives and hedging activities require companies to recognize all derivative instruments as either assets or liabilities at fair value on the balance sheets. In accordance with the standards, the interest rate swap is recorded on the balance sheets in other deferred credits at fair value. The Company uses regulatory accounting treatment rather than hedge accounting to defer the unrealized gains and losses on its interest rate swap. Instead of the effective portion being recorded as other comprehensive income and the ineffective portion being recognized in earnings, the entire unrealized swap value is recorded as a regulatory asset. Based on current ratemaking treatment, the Company expects the gains and losses to be recognized in rates and in interest expense as the swap settlements occur. Swap settlements are recorded in the income statement with the hedged item as interest expense. Swap settlements resulted in the reclassification from regulatory assets to interest expense of $366 in 2015, $368 in 2014, and $366 in 2013. The overall swap result was a (gain) loss of $285 in 2015, $1,318 in 2014, and $(830) in 2013. During the twelve months ending December 31, 2016, the Company expects to reclassify $328 (before tax) from regulatory assets to interest expense. The interest rate swap will expire on October 1, 2029. Income Taxes Certain income and expense items are accounted for in different time periods for financial reporting than for income tax reporting purposes. Deferred income taxes are accounted for under 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 and tax credit carryforwards. Deferred tax assets and liabilities are measured using 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 income in the period that includes the enactment date. To the extent such income taxes increase or decrease future rates, an offsetting regulatory asset or liability has been recorded. Investment tax credits have been deferred and are being amortized to income over the average estimated service lives of the related assets. As of December 31, 2015 and 2014, deferred investment tax credits amounted to $696 and $734, respectively. The Company filed for a change in accounting method under the IRS TPR when its 2014 income tax return was filed in 2015. The Company began adjusting its income tax provision for the effects of this change during the fourth quarter of 2014. Under the change in accounting method, the Company is permitted to deduct the costs of certain asset improvements that were previously being capitalized and depreciated for tax purposes as an expense on its income tax return. The Company is permitted to make this deduction for prior years (the "catch-up deduction") and each year going forward, beginning with 2014 (the "ongoing deduction"). The ongoing deduction results in a reduction in the effective income tax rate, a net reduction in income tax expense, and a reduction in the amount of income taxes currently payable. The catch-up deduction resulted in a decrease in current income taxes payable and an increase to regulatory liabilities. The Company will seek approval from the PPUC in its next rate filing to amortize the remaining catch-up deduction recorded as a regulatory liability. Both the ongoing and catch-up deductions resulted in increases to deferred tax liabilities and regulatory assets representing the appropriate book and tax basis difference on capital additions. Allowance for Funds Used During Construction Allowance for funds used during construction (AFUDC) represents the estimated cost of funds used for construction purposes during the period of construction. These costs are reflected as non-cash income during the construction period and as an addition to the cost of plant constructed. AFUDC includes the net cost of borrowed funds and a rate of return on other funds. The PPUC approved rate of 10.04% was applied for 2014 and 2013. The Company applied a blended rate in 2015 due to its partial use of tax-exempt financing for 2015 construction projects. The tax-exempt borrowing rates of 4.00% - 4.50% were applied to those expenditures so financed, whereas the approved 10.04% rate was applied to the remainder of 2015 expenditures. AFUDC is recovered through water and wastewater rates as utility plant is depreciated. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Impact of Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern, In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions [Abstract] | |
Acquisitions | 2. Acquisitions On March 7, 2013, the Company completed the acquisition of the Windy Brae Mobile Home Park water assets of Barkas, Inc. in York County, Pennsylvania. The Company began operating the existing system through an interconnection with its current distribution system on March 11, 2013. The acquisition resulted in the addition of approximately 135 new water customers with purchase price and acquisition costs of approximately $29, which is less than the depreciated original cost of the assets. The Company recorded a negative acquisition adjustment of approximately $45 and will seek approval from the PPUC to amortize the negative acquisition adjustment over the remaining life of the acquired assets. On February 7, 2014, the Company completed the acquisition of the wastewater facilities of East Prospect Borough Authority in York County, Pennsylvania. The Company began operating the existing collection and treatment facilities on February 8, 2014. The acquisition resulted in the addition of approximately 400 wastewater customers with purchase price and acquisition costs of approximately $281, which is less than the depreciated original cost of the assets. The Company recorded a negative acquisition adjustment of approximately $667 as of December 31, 2014. In 2015, the Company paid additional acquisition costs of approximately $2 resulting in a decrease of the negative acquisition adjustment to $665. The Company will seek approval from the PPUC to amortize the negative acquisition adjustment over the remaining life of the acquired assets. On May 30, 2014, the Company completed the acquisition of the water assets of Forest Lakes Water Association in York County, Pennsylvania. The Company began operating the existing system through an interconnection with its current distribution system on June 2, 2014. The acquisition resulted in the addition of approximately 70 new water customers with purchase price and acquisition costs of approximately $18, which is less than the depreciated original cost of the assets. The Company recorded a negative acquisition adjustment of approximately $9 as of December 31, 2014. In 2015, the Company paid additional acquisition costs of approximately $2 resulting in a decrease of the negative acquisition adjustment to $7. The Company will seek approval from the PPUC to amortize the negative acquisition adjustment over the remaining life of the acquired assets. On November 20, 2014, the Company completed the acquisition of the water assets of Lincoln Estates Mobile Home Park in Adams County, Pennsylvania. The Company began operating the existing system as a satellite location on November 24, 2014. The acquisition resulted in the addition of approximately 200 new water customers with purchase price and acquisition costs of approximately $70, which is less than the depreciated original cost of the assets. In 2015, the Company recorded a negative acquisition adjustment of approximately $77 and will seek approval from the PPUC to amortize the negative acquisition adjustment over the remaining life of the acquired assets. On April 9, 2015, the Company completed the acquisition of the water assets of The Meadows community in Adams County, Pennsylvania. The Company began operating the existing system as a satellite location on April 13, 2015. The acquisition resulted in the addition of approximately 90 new water customers with purchase price and acquisition costs of approximately $63, which is less than the depreciated original cost of the assets. The Company recorded a negative acquisition adjustment of approximately $159 and will seek approval from the PPUC to amortize the negative acquisition adjustment over the remaining life of the acquired assets. On April 22, 2015, the Company completed the acquisition of the water assets of the Paradise Homes Community in York County, Pennsylvania. The Company began operating the existing system through an interconnection with its current distribution system on April 27, 2015. The acquisition resulted in the addition of approximately 90 new water customers with purchase price and acquisition costs of approximately $36, which is less than the depreciated original cost of the assets. The Company recorded a negative acquisition adjustment of approximately $28 and will seek approval from the PPUC to amortize the negative acquisition adjustment over the remaining life of the acquired assets. On October 19, 2015, the Company completed the acquisition of the water assets of the Newberry Farms Mobile Home Park in York County, Pennsylvania. The Company began operating the existing system through an interconnection with its current distribution system on October 22, 2015. The acquisition resulted in the addition of approximately 160 new water customers with purchase price and acquisition costs of approximately $116. On November 2, 2015, the Company completed the acquisition of Margaretta Mobile Home Park in York County, Pennsylvania. The Company began operating the existing system through an interconnection with its current distribution system on November 3, 2015. The acquisition resulted in the addition of approximately 65 new water customers with purchase price and acquisition costs of approximately $133. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 3. Income Taxes The provisions for income taxes consist of: 2015 2014 2013 Federal current $ 1,873 $ 96 $ 2,720 State current 597 28 1,153 Federal deferred 2,131 3,757 1,907 State deferred 177 1,035 71 Federal investment tax credit, net of current utilization (38 ) (39 ) (39 ) Total income taxes $ 4,740 $ 4,877 $ 5,812 A reconciliation of the statutory Federal tax provision (34%) to the total provision follows: 2015 2014 2013 Statutory Federal tax provision $ 5,858 $ 5,563 $ 5,258 State income taxes, net of Federal benefit 511 702 808 IRS TPR ongoing deduction (1,438 ) (1,342 ) - Tax-exempt interest (37 ) (37 ) (34 ) Amortization of investment tax credit (38 ) (39 ) (39 ) Cash value of life insurance 71 15 (32 ) Domestic production deduction (190 ) - (154 ) Other, net 3 15 5 Total income taxes $ 4,740 $ 4,877 $ 5,812 The Company filed for a change in accounting method under the IRS TPR when its 2014 income tax return was filed in the third quarter of 2015. The Company began adjusting its income tax provision for the effects of this change during the fourth quarter of 2014. Under the change in accounting method, the Company is permitted to deduct the costs of certain asset improvements that were previously being capitalized and depreciated for tax purposes as an expense on its income tax return. The Company was permitted to make this deduction for prior years (the "catch-up deduction") and each year going forward, beginning with 2014 (the "ongoing deduction"). As a result of the catch-up deduction, income tax benefits of $4,314 were deferred as a regulatory liability as of December 31, 2014. The catch-up deduction resulted in a decrease in current income taxes payable and an increase to regulatory liabilities during 2014. In 2015, upon final determination of the TPR amounts for its income tax return, the Company reclassified the portion of TPR related to dispositions to deferred taxes and deferred tax liabilities in compliance with the IRS regulations. The Company will seek approval from the PPUC in its next rate filing to amortize the remaining catch-up deduction of $3,887 recorded as a regulatory liability. As a result of the ongoing deduction, the net income tax benefits of $1,438 and $1,342 for the years ended December 31, 2015 and 2014, respectively, reduced income tax expense and flowed-through to net income. The ongoing deduction results in a reduction in the effective income tax rate, a net reduction in income tax expense, and a reduction in the amount of income taxes currently payable. Both the ongoing and catch-up deductions result in increases to deferred tax liabilities and regulatory assets representing the appropriate book and tax basis difference on capital additions. The tax effects of temporary differences between book and tax balances that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2015 and 2014 are summarized in the following table: 2015 2014 Deferred tax assets: Reserve for doubtful accounts $ 128 $ 132 Compensated absences 221 209 Deferred compensation 1,465 1,452 Customers' advances and contributions 1 8 Deferred taxes associated with the gross-up of revenues necessary to return, in rates, the effect of temporary differences 122 123 Pensions 3,099 4,185 Tax loss carryover - 836 Contribution carryover 147 183 Other costs deducted for book, not for tax 51 49 Total deferred tax assets 5,234 7,177 Deferred tax liabilities: Accelerated depreciation 36,210 34,000 Basis differences from IRS TPR 7,196 5,917 Investment tax credit 413 436 Deferred taxes associated with the gross-up of revenues necessary to recover, in rates, the effect of temporary differences 7,271 6,210 Tax effect of pension regulatory asset 3,986 5,071 Other costs deducted for tax, not for book 438 509 Total deferred tax liabilities 55,514 52,143 Net deferred tax liability $ 50,280 $ 44,966 Reflected on balance sheets as: Current deferred tax asset $ (215 ) $ (1,058 ) Noncurrent deferred tax liability 50,495 46,024 Net deferred tax liability $ 50,280 $ 44,966 The Company has a contribution carryover of $363. If not used, this carryover will expire in 2019. No valuation allowance was required for deferred tax assets as of December 31, 2015 and 2014. In assessing the soundness of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon expected future taxable income and the current regulatory environment, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. The Company determined that there were no uncertain tax positions meeting the recognition and measurement test of the accounting standards recorded in the years that remain open for review by taxing authorities, which are 2012 through 2014 for both federal and state income tax returns. The Company has not yet filed tax returns for 2015, but has not taken any new position in its 2015 income tax provision. The Company's policy is to recognize interest and penalties related to income tax matters in other expenses. There were no interest or penalties for the years ended December 31, 2015, 2014, and 2013. |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt and Short-Term Borrowings [Abstract] | |
Long-Term Debt and Short-Term Borrowings | 4. Long-Term Debt and Short-Term Borrowings Long-term debt as of December 31, 2015 and 2014 is summarized in the following table: 2015 2014 4.05% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A, due 2016 $ - $ 2,350 5.00% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A, due 2016 - 4,950 10.17% Senior Notes, Series A, due 2019 6,000 6,000 9.60% Senior Notes, Series B, due 2019 5,000 5,000 1.00% Pennvest Loan, due 2019 162 205 10.05% Senior Notes, Series C, due 2020 6,500 6,500 8.43% Senior Notes, Series D, due 2022 7,500 7,500 Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series 2008A, due 2029 12,000 12,000 4.75% York County Industrial Development Authority Revenue Bonds, Series 2006, due 2036 10,500 10,500 4.50% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2014, due 2038 14,880 14,880 5.00% Monthly Senior Notes, Series 2010A, due 2040 15,000 15,000 4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 10,000 - Total long-term debt 87,542 84,885 Less discount on issuance of long-term debt (237 ) - Less current maturities (44 ) (43 ) Long-term portion $ 87,261 $ 84,842 Payments due by year: 2016 2017 2018 2019 2020 $ 44 $ 12,044 $ 44 $ 11,030 $ 6,500 Payments due in 2017 include potential payments of $12,000 on the variable rate bonds (due 2029) which would only be payable if all of the bonds were tendered and could not be remarketed. There is currently no such indication of this happening. Fixed Rate Long-Term Debt On July 23, 2015, the York County Industrial Development Authority (the "YCIDA") issued and sold $10,000 aggregate principal amount of YCIDA Exempt Facilities Revenue Bonds, Series 2015 (the "Series 2015 Bonds") for the Company's benefit pursuant to the terms of a trust indenture, dated as of July 1, 2015, between the YCIDA and Manufacturers and Traders Trust Company, as trustee. The YCIDA then loaned the proceeds of the sale of the Series 2015 Bonds to the Company pursuant to a loan agreement dated as of July 1, 2015, between the Company and the YCIDA, which matches the debt service requirements on the Bonds. The Bonds, and therefore the loan, bear interest at rates ranging from 4.00% to 4.50% per annum payable semiannually. The Bonds have stated maturity dates of June 1 of the years 2029, 2032, 2035, 2038, 2042 and 2045 and are subject to optional and mandatory redemption provisions. One such provision allows the Company to redeem all or a portion of the bonds on or after June 1, 2025. Amounts outstanding under the loan agreement are direct, unsecured and unsubordinated obligations of the Company. The Company received net proceeds, after deducting original issue discount and issuance costs, of approximately $9,500. The net proceeds were used to redeem the PEDFA Series A 2004 Bonds and to fund a portion of the Company's 2015 capital expenditures. On April 25, 2014, the Pennsylvania Economic Development Financing Authority (the "PEDFA") issued $14,880 aggregate principal amount of PEDFA Exempt Facilities Revenue Refunding Bonds, Series 2014 (the "Series 2014 Bonds") for the Company's benefit pursuant to the terms of a trust indenture, dated as of April 1, 2014, between the PEDFA and Manufacturers and Traders Trust Company, as trustee. The PEDFA then loaned the proceeds of the offering of the Series 2014 Bonds to the Company pursuant to a loan agreement, dated as of April 1, 2014, between the Company and the PEDFA. The loan bears interest at a rate of 4.50% payable semiannually. The maturity date of the loan is November 1, 2038. Amounts outstanding under the loan agreement are direct, unsecured and unsubordinated obligations of the Company. The proceeds of the loan were used to redeem the 6.00% PEDFA Exempt Facilities Revenue Refunding Bonds, Series 2008B. The refinancing will reduce interest expense and lower the overall effective debt rate going forward. The Series 2014 Bonds contain both optional and special redemption provisions. Under the optional provisions, the Company can redeem all or a portion of the bonds on or after May 1, 2019. Under the special provisions, representatives of deceased beneficial owners of the bonds have the right to request redemption prior to the stated maturity of all or part of their interest in the bonds beginning on or after May 1, 2014. The Company is not obligated to redeem any individual interest exceeding $25, or aggregate interest exceeding $300, in any annual period. To date, no bonds that met the special provisions have been tendered for redemption. Variable Rate Long-Term Debt On May 7, 2008, the PEDFA issued $12,000 aggregate principal amount of PEDFA Exempt Facilities Revenue Refunding Bonds, Series A of 2008 (the "Series A Bonds") for the Company's benefit pursuant to the terms of a trust indenture, dated as of May 1, 2008, between the PEDFA and Manufacturers and Traders Trust Company, as trustee. The PEDFA then loaned the proceeds of the offering of the Series A Bonds to the Company pursuant to a loan agreement, dated as of May 1, 2008, between the Company and the PEDFA. The loan agreement provides for a $12,000 loan with a maturity date of October 1, 2029. Amounts outstanding under the loan agreement are the Company's direct general obligations. The proceeds of the loan were used to redeem the PEDFA Exempt Facilities Revenue Bonds, Series B of 2004 (the "2004 Series B Bonds"). The 2004 Series B Bonds were redeemed because the bonds were tendered and could not be remarketed due to the downgrade of the bond insurer's credit rating. Borrowings under the loan agreement bear interest at a variable rate as determined by PNC Capital Markets, as remarketing agent, on a periodic basis elected by the Company, which has currently elected that the interest rate be determined on a weekly basis. The remarketing agent determines the interest rate based on the current market conditions in order to determine the lowest interest rate which would cause the Series A Bonds to have a market value equal to the principal amount thereof plus accrued interest thereon. The variable interest rate under the loan agreement averaged 0.06% in 2015 and 0.07% in 2014. As of December 31, 2015 and 2014, the interest rate was 0.02% and 0.05%, respectively. The holders of the $12,000 Series A Bonds may tender their bonds at any time. When the bonds are tendered, they are subject to an annual remarketing agreement, pursuant to which a remarketing agent attempts to remarket the tendered bonds according to the terms of the indenture. In order to keep variable interest rates down and to enhance the marketability of the Series A Bonds, the Company entered into a Reimbursement, Credit and Security Agreement with PNC Bank, National Association ("the Bank") dated as of May 1, 2008. This agreement provides for a direct pay letter of credit issued by the Bank to the trustee for the Series A Bonds. The Bank is responsible for providing the trustee with funds for the timely payment of the principal and interest on the Series A Bonds and for the purchase price of the Series A Bonds that have been tendered or deemed tendered for purchase and have not been remarketed. The Company's responsibility is to reimburse the Bank the same day as regular interest payments are made, and within fourteen months for the purchase price of tendered bonds that have not been remarketed. The reimbursement period for the principal is immediate at maturity, upon default by the Company, or if the Bank does not renew the Letter of Credit. The current expiration date of the Letter of Credit is June 30, 2017. It is reviewed annually for a potential extension of the expiration date. The Company may elect to have the Series A Bonds redeemed, in whole or in part, on any date that interest is payable for a redemption price equal to the principal amount thereof plus accrued interest to the date of redemption. The Series A Bonds are also subject to mandatory redemption for the same redemption price in the event that the IRS determines that the interest payable on the Series A Bonds is includable in gross income of the holders of the bonds for federal tax purposes. Interest Rate Swap Agreement In connection with the issuance of the PEDFA 2004 Series B Bonds, the Company entered into an interest rate swap agreement with a counterparty, in the notional principal amount of $12,000. The Company elected to retain the swap agreement for the 2008 Series A Bonds. Interest rate swap agreements derive their value from underlying interest rates. These transactions involve both credit and market risk. The notional amounts are amounts on which calculations, payments, and the value of the derivative are based. Notional amounts do not represent direct credit exposure. Direct credit exposure is limited to the net difference between the calculated amounts to be received and paid, if any. Such difference, which represents the fair value of the swap, is reflected on the Company's balance sheets. See Note 10 for additional information regarding the fair value of the swap. The interest rate swap will terminate on the maturity date of the 2008 Series A Bonds (which is the same date as the maturity date of the loan under the loan agreement), unless sooner terminated pursuant to its terms. In the event the interest rate swap terminates prior to the maturity date of the 2008 Series A Bonds, either the Company or the swap counterparty may be required to make a termination payment to the other based on market conditions at such time. The Company is exposed to credit-related losses in the event of nonperformance by the counterparty. The Company controls the credit risk of its financial contracts through credit approvals, limits and monitoring procedures, and does not expect the counterparty to default on its obligations. Notwithstanding the terms of the swap agreement, the Company is ultimately obligated for all amounts due and payable under the loan agreement. The interest rate swap agreement contains provisions that require the Company to maintain a credit rating of at least BBB- with Standard & Poor's. On March 20, 2015, Standard & Poor's affirmed the Company's credit rating at A-, with a stable outlook. If the Company's rating were to fall below this rating, it would be in violation of these provisions, and the counterparty to the derivative could request immediate payment if the derivative was in a liability position. The Company's interest rate swap was in a liability position as of December 31, 2015. If a violation was triggered on December 31, 2015, the Company would have been required to pay the counterparty approximately $2,683. The Company's interest rate swap agreement provides that it pay the counterparty a fixed interest rate of 3.16% on the notional amount of $12,000. In exchange, the counterparty pays the Company a floating interest rate (based on 59% of the U.S. Dollar one-month LIBOR rate) on the notional amount. The floating interest rate paid to the Company is intended, over the term of the swap, to approximate the variable interest rate on the loan agreement and the interest rate paid to bondholders, thereby managing its exposure to fluctuations in prevailing interest rates. The Company's net payment rate on the swap averaged 3.06% in 2015 and 3.07% in 2014. As of December 31, 2015, there was a negative spread of 18 basis points between the variable rate paid to bondholders and the variable rate received from the swap counterparty, which equated to an overall effective rate of 2.98% (including variable interest and swap payments). As of December 31, 2014, there was a negative spread of 5 basis point which equated to an overall effective rate of 3.11% (including variable interest and swap payments). Short-Term Borrowings As of December 31, 2015, the Company maintained unsecured lines of credit aggregating $29,000 with three banks. The first line of credit, in the amount of $13,000, is a committed line of credit with a revolving 2-year maturity (currently May 2017), and carries an interest rate of LIBOR plus 1.20%. The second line of credit, in the amount of $11,000, is a committed line of credit, which matures in May 2017 and carries an interest rate of LIBOR plus 1.25%. This line of credit had a compensating balance requirement of $500 which was eliminated in 2013. The third line of credit, in the amount of $5,000, is a committed line of credit, which matures in June 2016 and carries an interest rate of LIBOR plus 1.50%. The Company had no outstanding borrowings under any of its lines of credit as of December 31, 2015 and 2014. Debt Covenants and Restrictions The terms of the debt agreements carry certain covenants and limit in some cases the Company's ability to borrow additional funds, to prepay its borrowings and include certain restrictions with respect to declaration and payment of cash dividends and acquisition of the Company's stock. Under the terms of the most restrictive agreements, the Company cannot borrow in excess of 60% of its utility plant, and cumulative payments for dividends and acquisition of stock since December 31, 1982 may not exceed $1,500 plus net income since that date. As of December 31, 2015, none of the earnings retained in the business are restricted under these provisions. The Company's Pennvest Loan is secured by $800 of receivables. Other than this loan, the Company's debt is unsecured. The Company's lines of credit require it to maintain a minimum equity to total capitalization ratio (defined as the sum of equity plus funded debt) and a minimum interest coverage ratio (defined as net income plus interest expense plus income tax expense divided by interest expense). As of December 31, 2015, the Company was in compliance with these covenants. |
Common Stock and Earnings Per S
Common Stock and Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Common Stock and Earnings Per Share [Abstract] | |
Common Stock and Earnings Per Share | 5. Common Stock and Earnings Per Share Earnings per share is based upon the weighted average number of shares outstanding of 12,831,687 in 2015, 12,879,912 in 2014, and 12,928,040 in 2013. The Company does not have dilutive securities outstanding. Under the employee stock purchase plan, all full-time employees who have been employed at least ninety consecutive days may purchase shares of the Company's common stock limited to 10% of gross compensation. The purchase price is 95% of the fair market value (as defined). Shares issued during 2015, 2014 and 2013 were 7,417, 7,431 and 6,711, respectively. As of December 31, 2015, 80,711 authorized shares remain unissued under the plan. The Company has a Dividend Reinvestment and Direct Stock Purchase and Sale Plan, which is available to both current shareholders and the general public. Certain restrictions apply. Purchases are made weekly at 100% of the stock's fair market value, as defined in the Prospectus contained in Amendment No. 1 to Securities and Exchange Commission Form S-3, filed by the Company on June 26, 2008. Under the optional dividend reinvestment portion of the plan, holders of the Company's common stock may purchase additional shares instead of receiving cash dividends. The purchase price is 95% of the fair market value (as defined). Shares issued under the 2008 Dividend Reinvestment and Direct Stock Purchase and Sale Plan during 2013 were 112,163. No shares were issued under this Plan after October 30, 2013. On October 1, 2013, the Company filed a Registration Statement on Form S-3 with the SEC to authorize 500,000 shares to be issued under the new Prospectus for the Dividend Reinvestment and Direct Stock Purchase and Sale Plan. Other provisions of the plan were left substantially unchanged. The Registration Statement was declared effective by the SEC on October 31, 2013. Shares issued in 2015, 2014 and 2013 under the new Prospectus were 95,451, 126,379 and 36,188, respectively. As of December 31, 2015, 241,982 authorized shares remain unissued under the plan. On March 11, 2013, the Board of Directors authorized a share repurchase program granting the Company authority to repurchase up to 1,200,000 shares of the Company's common stock from time to time. Under the stock repurchase program, the Company may repurchase shares in the open market or through privately negotiated transactions. The Company may suspend or discontinue the repurchase program at any time. During 2015, 2014 and 2013, the Company repurchased and retired 121,012, 282,570 and 94,414 shares, respectively. As of December 31, 2015, 702,004 shares remain available for repurchase. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 6. Employee Benefit Plans Pensions The Company maintains a general and administrative and a union-represented defined benefit pension plan covering all of its employees hired prior to May 1, 2010. Employees hired after May 1, 2010 are eligible for an enhanced 401(k) plan rather than a defined benefit plan. The benefits under the defined benefit plans are based upon years of service and compensation near retirement. The Company amended its defined benefit pension plans in 2014, generally limiting the years of eligible service under the plans to 30 years. The Company's funding policy is to contribute annually the amount permitted by the PPUC to be collected from customers in rates, but in no case less than the minimum Employee Retirement Income Security Act (ERISA) required contribution. The following table sets forth the plans' funded status as of December 31, 2015 and 2014. The measurement of assets and obligations of the plans is as of December 31, 2015 and 2014. Obligations and Funded Status At December 31 2015 2014 Change in Benefit Obligation Pension benefit obligation beginning of year $ 40,884 $ 32,054 Service cost 1,166 952 Interest cost 1,515 1,444 Actuarial (gain) loss (2,873 ) 7,762 Plan amendments - (210 ) Benefit payments (1,223 ) (1,118 ) Pension benefit obligation end of year 39,469 40,884 Change in Plan Assets Fair value of plan assets beginning of year 30,575 27,102 Actual return on plan assets 183 2,409 Employer contributions 2,300 2,182 Benefits paid (1,223 ) (1,118 ) Fair value of plan assets end of year 31,835 30,575 Funded Status of Plans at End of Year $ (7,634 ) $ (10,309 ) The accounting standards require that the funded status of defined benefit pension plans be fully recognized on the balance sheets. They also call for the unrecognized actuarial gain or loss, the unrecognized prior service cost and the unrecognized transition costs to be adjustments to shareholders' equity (accumulated other comprehensive income). Due to a rate order granted by the PPUC, the Company is permitted under the accounting standards to defer the charges to accumulated other comprehensive income as a regulatory asset. Management believes these costs will be recovered in future rates charged to customers. The liability for the funded status of the Company's pension plans is recorded in "Deferred employee benefits" on its balance sheets. In 2015, the plans recognized an actuarial gain due to the 40 basis point increase in the discount rate and the adoption of an adjusted RP-2014 mortality table and improvement scale which lessened the impact of the RP-2014 mortality table. In 2014, the actuarial loss grew substantially due to the 85 basis point decline in the discount rate, and a change in mortality tables to the RP-2014 (White Collar and Blue Collar) which increased the life expectancy of plan participants. The Company uses the corridor method to amortize actuarial gains and losses. Gains and losses over 10% of the greater of pension benefit obligation or the market value of assets are amortized over the average future service of plan participants expected to receive benefits. Changes in plan assets and benefit obligations recognized in regulatory assets are as follows: 2015 2014 Net (gain) loss arising during the period $ (826 ) $ 7,339 Recognized net actuarial loss (705 ) (126 ) Recognized prior service credit (cost) 13 (197 ) Total changes in regulatory asset during the year $ (1,518 ) $ 7,016 Amounts recognized in regulatory assets that have not yet been recognized as components of net periodic benefit cost consist of the following at December 31: 2015 2014 Net loss $ 10,447 $ 11,978 Prior service (credit) cost (127 ) (140 ) Regulatory asset $ 10,320 $ 11,838 Components of Net Periodic Benefit Cost are as follows: 2015 2014 2013 Service cost $ 1,166 $ 952 $ 1,188 Interest cost 1,515 1,444 1,280 Expected return on plan assets (2,229 ) (1,986 ) (1,644 ) Amortization of loss 705 126 698 Amortization of prior service (credit) cost (13 ) (13 ) 10 Rate-regulated adjustment 1,156 1,659 61 Net periodic benefit cost $ 2,300 $ 2,182 $ 1,593 The rate-regulated adjustment set forth above is required in order to reflect pension expense for the Company in accordance with the method used in establishing water rates. The Company is permitted by rate order of the PPUC to expense pension costs to the extent of contributions and defer the remaining expense to regulatory assets to be collected in rates at a later date as additional contributions are made. During 2015, the deferral decreased $1,156. The estimated costs for the defined benefit pension plans relating to the December 31, 2015 balance sheet that will be amortized from regulatory assets into net periodic benefit cost over the next fiscal year are as follows: Net loss $ 554 Net prior service credit (13 ) 541 The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in each of the next five years and the subsequent five years in the aggregate: 2016 2017 2018 2019 2020 2021-2025 $ 1,591 $ 1,592 $ 1,725 $ 1,862 $ 1,875 $ 10,785 The following tables show the projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets as of December 31: 2015 2014 Projected benefit obligation $ 39,469 $ 40,884 Fair value of plan assets 31,835 30,575 2015 2014 Accumulated benefit obligation $ 36,302 $ 37,500 Fair value of plan assets 31,835 30,575 Weighted-average assumptions used to determine benefit obligations at December 31: 2015 2014 Discount rate 4.20 % 3.80 % Rate of compensation increase 2.50% - 3.00 % 3.00 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: 2015 2014 2013 Discount rate 3.80 % 4.65 % 3.75 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase 3.00 % 3.00 % 3.00 % The selected long-term rate of return on plan assets was primarily based on the asset allocation of the plan's assets (approximately 50% to 70% equity securities and 30% to 50% fixed income securities). Analysis of the historic returns of these asset classes and projections of expected future returns were considered in setting the long-term rate of return. The investment objective of the Company's defined benefit pension plans is that of Growth and Income. The weighted-average target asset allocations are 50% to 70% equity securities, 30% to 50% fixed income securities, and 0% to 10% reserves (cash and cash equivalents). Within the equity category, the Company's target allocation is approximately 60-95% large cap, 0-25% mid cap, 0-10% small cap, 0-25% International Developed Nations, and 0-10% International Emerging Nations. Within the fixed income category, its target allocation is approximately 15-55% U.S. Treasuries, 0–22% Federal Agency securities, 0-40% corporate bonds, 15-55% mortgage-backed securities, 0-20% international, and 0-20% high yield bonds. The Company's investment performance objectives over a three to five year period are to exceed the annual rate of inflation as measured by the Consumer Price Index by 3%, and to exceed the annualized total return of specified benchmarks applicable to the funds within the asset categories. Further guidelines within equity securities include: (1) holdings in any one company cannot exceed 5% of the portfolio; (2) a minimum of 20 individual stocks must be included in the domestic stock portfolio; (3) a minimum of 30 individual stocks must be included in the international stock portfolio; (4) equity holdings in any one industry cannot exceed 20-25% of the portfolio; and (5) only U.S.-denominated currency securities are permitted. Further guidelines for fixed income securities include: (1) fixed income holdings in a single issuer are limited to 5% of the portfolio; (2) acceptable investments include money market securities, U.S. Government and its agencies and sponsored entities' securities, mortgage-backed and asset-backed securities, corporate securities and mutual funds offering high yield bond portfolios; (3) purchases must be limited to investment grade or higher; (4) non-U.S. dollar denominated securities are not permissible; and (5) high risk derivatives are prohibited. The fair values of the Company's pension plan assets at December 31, 2015 and 2014 by asset category and fair value hierarchy level are as follows. The majority of the valuations are based on quoted prices on active markets (Level 1), with the remaining valuations based on broker/dealer quotes, active market makers, models, and yield curves (Level 2). Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Asset Category 2015 2014 2015 2014 2015 2014 Cash and Money Market Funds (a) $ 1,205 $ 1,064 $ 1,205 $ 1,064 $ - $ - Equity Securities: Common Equity Securities (b) 2,686 3,031 2,686 3,031 - - Equity Mutual Funds (c) 18,017 16,380 18,017 16,380 - - Fixed Income Securities: U.S. Treasury Obligations 833 831 - - 833 831 Corporate and Foreign Bonds (d) 3,427 1,620 - - 3,427 1,620 Fixed Income Mutual Funds (e) 5,667 7,649 5,667 7,649 - - Total Plan Assets $ 31,835 $ 30,575 $ 27,575 $ 28,124 $ 4,260 $ 2,451 (a) The portfolios are designed to keep approximately three months of distributions in immediately available funds. The Company was more heavily-weighted in cash as of December 31, 2015 due to market volatility (b) This category includes investments in U.S. common stocks and foreign stocks trading in the U.S. widely distributed among consumer discretionary, consumer staples, healthcare, information technology, financial services, materials, industrials and energy. The individual stocks are primarily large cap stocks which track with the S&P 500 with the exception of $447 in 2014 which was invested in York Water Company common stock. In 2015, the Company repurchased the company stock previously held in the pension portfolio. (c) This category currently includes a majority of investments in closed-end mutual funds as well as domestic equity mutual funds and international mutual funds which give the portfolio exposure to mid and large cap index funds as well as international diversified index funds. (d) This category currently includes only U.S. corporate bonds and notes widely distributed among consumer discretionary, consumer staples, healthcare, information technology and financial services. (e) This category includes fixed income investments in mutual funds which include government, corporate and mortgage securities of both the U.S. and other countries. The mortgage-backed securities and non-U.S. corporate and sovereign investments add further diversity to the fixed income portion of the portfolio. Defined Contribution Plan The Company has a savings plan pursuant to the provisions of section 401(k) of the Internal Revenue Code. For employees hired before May 1, 2010, this plan provides for elective employee contributions of up to 15% of compensation and Company matching contributions of 100% of the participant's contribution, up to a maximum annual Company contribution of $2.8 for each employee. Employees hired after May 1, 2010 are entitled to an enhanced feature of the plan. This feature provides for elective employee contributions of up to 15% of compensation and Company matching contributions of 100% of the participant's contribution, up to a maximum of 4% of the employee's compensation. In addition, the Company will make an annual contribution of $1.2 to each employee's account whether or not they defer their own compensation. Employees eligible for this enhanced 401(k) plan feature are not eligible for the defined benefit plans. As of December 31, 2015, nineteen employees were participating in the enhanced feature of the plan. The Company's contributions to both portions of the plan amounted to $262 in 2015, $239 in 2014, and $222 in 2013. Deferred Compensation The Company has non-qualified deferred compensation and supplemental retirement agreements with certain members of management. The future commitments under these arrangements are offset by corporate-owned life insurance policies. At December 31, 2015 and 2014, the present value of the future obligations was approximately $3,608 and $3,576, respectively. The insurance policies included in other assets had a total cash value of approximately $3,378 and $3,567 at December 31, 2015 and 2014, respectively. The Company's net (income) expenses under the plans amounted to $380 in 2015, $658 in 2014 and $(91) in 2013. Other The Company has a retiree life insurance program which pays the beneficiary of a retiree $2 upon the retiree's death. At December 31, 2015 and 2014, the present value of the future obligations was approximately $98 and $110, respectively. There is no trust or insurance covering this future liability, instead the Company will pay these benefits out of its general assets. The Company's net (income) expenses under the plan amounted to $(4) in 2015, $25 in 2014 and $(14) in 2013. |
Rate Matters
Rate Matters | 12 Months Ended |
Dec. 31, 2015 | |
Rate Matters [Abstract] | |
Rate Matters | 7. Rate Matters From time to time, the Company files applications for rate increases with the PPUC and is granted rate relief as a result of such requests. The most recent rate request was filed by the Company on May 29, 2013 and sought an increase in rates designed to produce additional annual water revenues of $7,116 and additional annual wastewater revenues of $28. Effective February 28, 2014, the PPUC authorized an increase in water rates designed to produce approximately $4,972 in additional annual revenues, and an increase in wastewater rates for the Asbury Pointe subdivision to produce approximately $28 in additional annual revenues. The PPUC permits water utilities to collect a distribution system improvement charge (DSIC). The DSIC allows the Company to add a charge to customers' bills for qualified replacement costs of certain infrastructure without submitting a rate filing. This surcharge mechanism typically adjusts periodically based on additional qualified capital expenditures completed or anticipated in a future period. The DSIC is capped at 5% of base rates, and is reset to zero when new base rates that reflect the costs of those additions become effective or when a utility's earnings exceed a regulatory benchmark. The surcharge reset to zero when the new base rates took effect on February 28, 2014. In 2015, the Company's earnings exceeded the regulatory benchmark, preventing the collection of a DSIC. The DSIC provided revenues in 2015, 2014 and 2013 of $0, $283 and $1,445, respectively. The DSIC is subject to audit by the PPUC. |
Notes Receivable and Customers'
Notes Receivable and Customers' Advances for Construction | 12 Months Ended |
Dec. 31, 2015 | |
Notes Receivable and Customers' Advances for Construction [Abstract] | |
Notes Receivable and Customers' Advances for Construction | 8. Notes Receivable and Customers' Advances for Construction The Company entered agreements with three municipalities to extend water service into previously formed water districts. The Company loaned funds to the municipalities to cover the costs related to the projects. The municipalities concurrently advanced these funds back to the Company in the form of customers' advances for construction. The municipalities are required by enacted ordinances to charge application fees and water revenue surcharges (fees) to customers connected to the system, which are remitted to the Company. The note principal and the related customer advance are reduced periodically as operating revenues are earned by the Company from customers connected to the system and refunds of advances are made. There is no due date for the notes or expiration date for the advances. Two of the notes receivable were fully repaid in 2015. The Company has recorded interest income of $110 in 2015, $107 in 2014 and $101 in 2013. The interest rate on the note outstanding at December 31, 2015 is 7.5%. Included in the accompanying balance sheets at December 31, 2015 and 2014 were the following amounts related to these projects. 2015 2014 Notes receivable, including interest $ 255 $ 266 Customers' advances for construction 310 626 The Company has other customers' advances for construction totaling $7,190 and $10,086 at December 31, 2015 and 2014, respectively. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments [Abstract] | |
Commitments | 9. Commitments Based on its capital budget, the Company anticipates construction and acquisition expenditures for 2016 and 2017 of approximately $20,100 and $13,100, respectively, exclusive of any acquisitions not yet approved. The Company plans to finance ongoing capital expenditures with internally-generated funds, borrowings against the Company's lines of credit, proceeds from the issuance of common stock under its dividend reinvestment and direct stock purchase and sale plan and ESPP, potential common stock or debt issues and customer advances. As of December 31, 2015, the Company employed 107 full time people, including 37 under union contract. The current contract was ratified in March 2014 and expires on April 30, 2017. The Company is involved in certain legal and administrative proceedings before various courts and governmental agencies concerning water service and other matters. The Company expects that the ultimate disposition of these proceedings will not have a material effect on the Company's financial position, results of operations and cash flows. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 10. Fair Value of Financial Instruments The accounting standards regarding fair value measurements establish a fair value hierarchy which indicates the extent to which inputs used in measuring fair value are observable in the market. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, commodity rates and yield curves. Level 3 inputs are not observable in the market and include management's own judgments about the assumptions market participants would use in pricing the asset or liability. The Company has recorded its interest rate swap liability at fair value in accordance with the standards. The liability is recorded under the caption "Other deferred credits" on the balance sheets. The table below illustrates the fair value of the interest rate swap as of the end of the reporting period. Description December 31, 2015 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,511 $2,511 Fair values are measured as the present value of all expected future cash flows based on the LIBOR-based swap yield curve as of the date of the valuation. These inputs to this calculation are deemed to be Level 2 inputs. The balance sheet carrying value reflects the Company's credit quality as of December 31, 2015. The rate used in discounting all prospective cash flows anticipated to be made under this swap reflects a representation of the yield to maturity for 30-year debt on utilities rated A- as of December 31, 2015. The use of the Company's credit quality resulted in a reduction in the swap liability of $172. The fair value of the swap reflecting the Company's credit quality as of December 31, 2014 is shown in the table below. Description December 31, 2014 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,592 $2,592 The carrying amount of current assets and liabilities that are considered financial instruments approximates fair value as of the dates presented. The Company's long-term debt (including current maturities and excluding the discount on issuance of long-term debt), with a carrying value of $87,542 at December 31, 2015, and $84,885 at December 31, 2014, had an estimated fair value of approximately $102,000 and $100,000 at December 31, 2015 and 2014, respectively. The estimated fair value of debt was calculated using a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration and risk profile. These inputs to this calculation are deemed to be Level 2 inputs. The Company recognized its credit rating in determining the yield curve, and did not factor in third party credit enhancements including bond insurance on the 2006 York County Industrial Development Authority issue and the letter of credit on the 2008 PEDFA Series A issue. Customers' advances for construction and notes receivable have carrying values at December 31, 2015 of $7,500 and $255, respectively. At December 31, 2014, customers' advances for construction and notes receivable had carrying values of $10,712 and $266, respectively. The relative fair values of these amounts cannot be accurately estimated since the timing of future payment streams is dependent upon several factors, including new customer connections, customer consumption levels and future rate increases. |
Taxes Other than Income Taxes
Taxes Other than Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Taxes Other than Income Taxes [Abstract] | |
Taxes Other than Income Taxes | 11. Taxes Other than Income Taxes The following table provides the components of taxes other than income taxes: 2015 2014 2013 Regulatory Assessment $ 242 $ 218 $ 220 Property 334 339 364 Payroll, net of amounts capitalized 510 494 462 Capital Stock 42 59 75 Other 1 1 1 Total taxes other than income taxes $ 1,129 $ 1,111 $ 1,122 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Data (Unaudited) [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 12. Selected Quarterly Financial Data (Unaudited) First Second Third Fourth Year 2015 Operating revenues $ 11,209 $ 11,895 $ 12,368 $ 11,617 $ 47,089 Operating income 5,134 5,682 6,353 5,492 22,661 Net income 2,528 2,925 3,520 3,516 12,489 Basic earnings per share 0.20 0.22 0.28 0.27 0.97 Dividends declared per share 0.1495 0.1495 0.1495 0.1555 0.6040 2014 Operating revenues $ 10,571 $ 11,768 $ 12,062 $ 11,499 $ 45,900 Operating income 4,758 5,800 6,092 5,427 22,077 Net income * 2,111 2,757 3,065 3,551 11,484 Basic earnings per share 0.16 0.22 0.23 0.28 0.89 Dividends declared per share 0.1431 0.1431 0.1431 0.1495 0.5788 * Fourth quarter net income includes a tax benefit of $1,342 for the full year 2014 due to the implementation of the IRS TPR. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Schedule II Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | FOR THE THREE YEARS ENDED DECEMBER 31, 2015 Additions Description Balance at Beginning of Year Charged to Cost and Expenses Recoveries Deductions Balance at End of Year FOR THE YEAR ENDED DECEMBER 31, 2015 Reserve for uncollectible accounts $ 325,000 $ 292,248 $ 40,681 $ 342,929 $ 315,000 FOR THE YEAR ENDED DECEMBER 31, 2014 Reserve for uncollectible accounts $ 320,000 $ 322,499 $ 44,071 $ 361,570 $ 325,000 FOR THE YEAR ENDED DECEMBER 31, 2013 Reserve for uncollectible accounts $ 305,000 $ 290,886 $ 36,369 $ 312,255 $ 320,000 The Deductions column above represents write-offs of accounts receivable during the applicable year. |
Significant Accounting Polici21
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies [Abstract] | |
Nature of Operations | The primary business of The York Water Company is to impound, purify and distribute water. The Company also operates two wastewater collection and treatment systems. The Company operates within its franchised territory located in York and Adams Counties, Pennsylvania, and is subject to regulation by the Pennsylvania Public Utility Commission, or PPUC. |
Utility Plant and Depreciation | Utility Plant and Depreciation The cost of additions includes contracted cost, direct labor and fringe benefits, materials, overhead and, for certain utility plant, allowance for funds used during construction. In accordance with regulatory accounting requirements, water and wastewater systems acquired are recorded at estimated original cost of utility plant when first devoted to utility service and the applicable depreciation is recorded to accumulated depreciation. The difference between the estimated original cost less applicable accumulated depreciation, and the purchase price and acquisition costs is recorded as an acquisition adjustment within utility plant as permitted by the PPUC. At December 31, 2015 and 2014, utility plant includes a net credit acquisition adjustment of $3,724 and $3,522, respectively. For those amounts approved by the PPUC, the net acquisition adjustment is being amortized over the remaining life of the respective assets. Certain amounts are still awaiting approval from the PPUC before amortization will commence. Amortization amounted to $58 in 2015, $54 in 2014, and $50 in 2013. Upon normal retirement of depreciable property, the estimated or actual cost of the asset is credited to the utility plant account, and such amounts, together with the cost of removal less salvage value, are charged to the reserve for depreciation. To the extent the Company recovers cost of removal or other retirement costs through rates after the retirement costs are incurred, a regulatory asset is reported. Gains or losses from abnormal retirements are reflected in income currently. The straight-line remaining life method is used to compute depreciation on utility plant cost, exclusive of land and land rights. Annual provisions for depreciation of transportation and mechanical equipment included in utility plant are computed on a straight-line basis over the estimated service lives. Such provisions are charged to clearing accounts and apportioned therefrom to operating expenses and other accounts in accordance with the Uniform System of Accounts as prescribed by the PPUC. The Company charges to maintenance expense the cost of repairs and replacements and renewals of minor items of property. Maintenance of transportation equipment is charged to clearing accounts and apportioned therefrom in a manner similar to depreciation. The cost of replacements, renewals and betterments of units of property is capitalized to the utility plant accounts. The following remaining lives are used for financial reporting purposes: December 31, Approximate range Utility Plant Asset Category 2015 2014 of remaining lives Mains and accessories $ 170,991 $ 164,627 10 – 83 years Services, meters and hydrants 66,267 63,479 19 – 55 years Operations structures, reservoirs and water tanks 44,739 43,654 12 – 38 years Pumping and treatment equipment 27,664 25,616 3 – 34 years Office, transportation and operating equipment 11,725 11,216 3 – 21 years Land and other non-depreciable assets 3,172 3,166 - Utility plant in service 324,558 311,758 Construction work in progress 4,857 4,767 - Total Utility Plant $ 329,415 $ 316,525 The effective rate of depreciation was 2.24% in 2015, 2.26% in 2014, and 2.28% in 2013 on average utility plant, net of customers' advances and contributions. Larger depreciation provisions resulting from allowable accelerated methods are deducted for tax purposes. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purposes of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents except for those instruments earmarked to fund construction expenditures or repay long-term debt. The Company periodically maintains cash balances in major financial institutions in excess of the federally insured limit by the Federal Deposit Insurance Corporation (FDIC). The Company has not experienced any losses and believes it is not exposed to any significant credit risk on cash and cash equivalents. |
Restricted Cash | Restricted Cash The Company served as the custodian for an escrow account that was used to rehabilitate a neighborhood within the service territory of the Company. The deposits made by various community organizations were classified as restricted cash on the balance sheets of the Company. The project was completed and the remaining cash was disbursed in 2015. In 2012, the Company had a compensating balance requirement for one of its lines of credit which was recorded as Restricted Cash – compensating balance. This requirement was removed in 2013. |
Accounts Receivable | Accounts Receivable Accounts receivable are stated at outstanding balances, less a reserve for doubtful accounts. The reserve for doubtful accounts is established through provisions charged against income. Accounts deemed to be uncollectible are charged against the reserve and subsequent recoveries, if any, are credited to the reserve. The reserve for doubtful accounts is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management's periodic evaluation of the adequacy of the reserve is based on past experience, agings of the receivables, adverse situations that may affect a customer's ability to pay, current economic conditions, and other relevant factors. This evaluation is inherently subjective. Unpaid balances remaining after the stated payment terms are considered past due. |
Revenue Recognition | Revenue Recognition Operating revenues include amounts billed to water customers on a cycle basis and unbilled amounts based on actual and estimated usage from the latest meter reading to the end of the accounting period. Operating revenues also include amounts billed to wastewater customers as either a flat monthly fee or a metered rate based on water consumption. The metered wastewater revenue includes actual and estimated usage from the latest meter reading to the end of the accounting period. |
Materials and Supplies Inventories | Materials and Supplies Inventories Materials and supplies inventories are stated at cost. Costs are determined using the average cost method. |
Deferred Debt Expense | Deferred Debt Expense Deferred debt expense is amortized on a straight-line basis over the term of the related debt. |
Notes Receivable | Notes Receivable Notes receivable are recorded at cost and represent amounts due from various municipalities for construction of water mains in their particular municipality. Management, considering current information and events regarding the borrowers' ability to repay their obligations, considers a note to be impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the note agreement. When a note is considered to be impaired, the carrying value of the note is written down. The amount of the impairment is measured based on the present value of expected future cash flows discounted at the note's effective interest rate. |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities The Company is subject to the provisions of generally accepted accounting principles regarding rate-regulated entities. The accounting standards provide for the recognition of regulatory assets and liabilities as allowed by regulators for costs or credits that are reflected in current customer rates or are considered probable of being included in future rates. The regulatory assets or liabilities are then relieved as the cost or credit is reflected in rates. Regulatory assets represent costs that are expected to be fully recovered from customers in future rates while regulatory liabilities represent amounts that are expected to be refunded to customers in future rates. These deferred costs have been excluded from the Company's rate base and, therefore, no return is being earned on the unamortized balances. Regulatory assets and liabilities are comprised of the following: December 31, Remaining Recovery 2015 2014 Periods Assets Income taxes $ 18,389 $ 15,800 Various Postretirement benefits 9,819 12,493 5 – 10 years Unrealized swap losses 2,481 2,561 1 – 14 years Utility plant retirement costs 2,247 1,561 5 years Service life study expenses 3 5 2 years Rate case filing expenses 57 194 1 years 32,996 32,614 Liabilities IRS TPR catch-up deduction 3,887 4,314 Not yet known Income taxes 776 806 1 – 50 years $ 4,663 $ 5,120 The regulatory asset for income taxes include (a) deferred state income taxes related primarily to differences between book and tax depreciation expense, (b) deferred income taxes related to the differences that arise between specific asset improvement costs capitalized for book purposes and deducted as a repair expense for tax purposes, and (c) deferred income taxes associated with the gross-up of revenues related to the differences. These assets are recognized for ratemaking purposes on a cash or flow-through basis and will be recovered in rates as they reverse. Postretirement benefits include the difference between contributions and deferred pension expense and the underfunded status of the pension plans. The underfunded status represents the difference between the projected benefit obligation and the fair market value of the assets. This asset is expected to be recovered in future years as additional contributions are made or market conditions improve. The recovery period is dependent on contributions made to the plans, plan asset performance and the discount rate used to value the obligations. The period is estimated at between 5 and 10 years. The Company uses regulatory accounting treatment to defer the mark-to-market unrealized gains and losses on its interest rate swap to reflect that the gain or loss is included in the ratemaking formula when the transaction actually settles. The value of the swap as of the balance sheet date is recorded as part of other deferred credits. Realized gains or losses on the swap will be recorded as interest expense in the statement of income over its remaining life of 14 years. Utility plant retirement costs, including cost of removal, represents costs already incurred which are expected to be recovered over a five-year period in rates, through depreciation expense. Service life study and rate case filing expenses are deferred and amortized over their remaining lives of two and one years, respectively. The regulatory liability for the Internal Revenue Service, or IRS, tangible property regulations, or TPR, catch-up deduction represents the tax benefits realized on the Company's 2014 income tax return for qualifying capital expenditures made prior to 2014. In 2015, upon final determination of the TPR amounts for its income tax return, the Company reclassified the portion of TPR related to dispositions to deferred taxes and deferred tax liabilities in compliance with the IRS regulations. The Company will seek approval from the PPUC in its next rate filing to amortize the remaining catch-up deduction. The regulatory liability for income taxes relates mainly to deferred investment tax credits, and additionally to deferred taxes related to postretirement death benefits and bad debts. These liabilities will be given back to customers in rates as tax deductions occur over the next 1-50 years. Regulatory liabilities are part of other accrued expenses and other deferred credits on the balance sheets. |
Other Assets | Other Assets Other assets consist mainly of the cash value of life insurance policies held as an investment by the Company for reimbursement of costs and benefits associated with its supplemental retirement and deferred compensation programs. |
Customers' Advances for Construction | Customers' Advances for Construction Customer advances are cash payments from developers, municipalities, customers or builders for construction of utility plant, and are refundable upon completion of construction, as operating revenues are earned. If the Company loans funds for construction to the customer, the refund amount is credited to the note receivable rather than paid out in cash. After all refunds to which the customer is entitled are made, any remaining balance is transferred to contributions in aid of construction. From 1986 to 1996 when customer advances were taxable income to the Company, additional funds were collected from customers to cover the taxes. Those funds were recorded as a liability within Customer Advances for Construction and are being amortized as deferred income over the tax life of the underlying assets. |
Contributions in Aid of Construction | Contributions in Aid of Construction Contributions in Aid of Construction is composed of (i) direct, non-refundable contributions from developers, customers or builders for construction of water infrastructure and (ii) customer advances that have become non-refundable. Contributions in aid of construction are deducted from the Company's rate base, and therefore, no return is earned on property financed with contributions. The PPUC requires that contributions received remain on the Company's balance sheets indefinitely as a long-term liability. |
Interest Rate Swap Agreement | Interest Rate Swap Agreement The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is interest rate risk. The Company utilizes an interest rate swap agreement to convert its variable-rate debt to a fixed rate. Interest rate swaps are contracts in which a series of interest rate cash flows are exchanged over a prescribed period. The notional amount on which the interest payments are based is not exchanged. The Company has designated the interest rate swap agreement as a cash flow hedge, classified as a financial derivative used for non-trading activities. The accounting standards regarding accounting for derivatives and hedging activities require companies to recognize all derivative instruments as either assets or liabilities at fair value on the balance sheets. In accordance with the standards, the interest rate swap is recorded on the balance sheets in other deferred credits at fair value. The Company uses regulatory accounting treatment rather than hedge accounting to defer the unrealized gains and losses on its interest rate swap. Instead of the effective portion being recorded as other comprehensive income and the ineffective portion being recognized in earnings, the entire unrealized swap value is recorded as a regulatory asset. Based on current ratemaking treatment, the Company expects the gains and losses to be recognized in rates and in interest expense as the swap settlements occur. Swap settlements are recorded in the income statement with the hedged item as interest expense. Swap settlements resulted in the reclassification from regulatory assets to interest expense of $366 in 2015, $368 in 2014, and $366 in 2013. The overall swap result was a (gain) loss of $285 in 2015, $1,318 in 2014, and $(830) in 2013. During the twelve months ending December 31, 2016, the Company expects to reclassify $328 (before tax) from regulatory assets to interest expense. The interest rate swap will expire on October 1, 2029. |
Income Taxes | Income Taxes Certain income and expense items are accounted for in different time periods for financial reporting than for income tax reporting purposes. Deferred income taxes are accounted for under 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 and tax credit carryforwards. Deferred tax assets and liabilities are measured using 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 income in the period that includes the enactment date. To the extent such income taxes increase or decrease future rates, an offsetting regulatory asset or liability has been recorded. Investment tax credits have been deferred and are being amortized to income over the average estimated service lives of the related assets. As of December 31, 2015 and 2014, deferred investment tax credits amounted to $696 and $734, respectively. The Company filed for a change in accounting method under the IRS TPR when its 2014 income tax return was filed in 2015. The Company began adjusting its income tax provision for the effects of this change during the fourth quarter of 2014. Under the change in accounting method, the Company is permitted to deduct the costs of certain asset improvements that were previously being capitalized and depreciated for tax purposes as an expense on its income tax return. The Company is permitted to make this deduction for prior years (the "catch-up deduction") and each year going forward, beginning with 2014 (the "ongoing deduction"). The ongoing deduction results in a reduction in the effective income tax rate, a net reduction in income tax expense, and a reduction in the amount of income taxes currently payable. The catch-up deduction resulted in a decrease in current income taxes payable and an increase to regulatory liabilities. The Company will seek approval from the PPUC in its next rate filing to amortize the remaining catch-up deduction recorded as a regulatory liability. Both the ongoing and catch-up deductions resulted in increases to deferred tax liabilities and regulatory assets representing the appropriate book and tax basis difference on capital additions. |
Allowance for Funds Used During Construction | Allowance for Funds Used During Construction Allowance for funds used during construction (AFUDC) represents the estimated cost of funds used for construction purposes during the period of construction. These costs are reflected as non-cash income during the construction period and as an addition to the cost of plant constructed. AFUDC includes the net cost of borrowed funds and a rate of return on other funds. The PPUC approved rate of 10.04% was applied for 2014 and 2013. The Company applied a blended rate in 2015 due to its partial use of tax-exempt financing for 2015 construction projects. The tax-exempt borrowing rates of 4.00% - 4.50% were applied to those expenditures so financed, whereas the approved 10.04% rate was applied to the remainder of 2015 expenditures. AFUDC is recovered through water and wastewater rates as utility plant is depreciated. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Impact of Recent Accounting Pronouncements | Impact of Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern, In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date |
Significant Accounting Polici22
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies [Abstract] | |
Utility Plant | The following remaining lives are used for financial reporting purposes: December 31, Approximate range Utility Plant Asset Category 2015 2014 of remaining lives Mains and accessories $ 170,991 $ 164,627 10 – 83 years Services, meters and hydrants 66,267 63,479 19 – 55 years Operations structures, reservoirs and water tanks 44,739 43,654 12 – 38 years Pumping and treatment equipment 27,664 25,616 3 – 34 years Office, transportation and operating equipment 11,725 11,216 3 – 21 years Land and other non-depreciable assets 3,172 3,166 - Utility plant in service 324,558 311,758 Construction work in progress 4,857 4,767 - Total Utility Plant $ 329,415 $ 316,525 |
Regulatory Assets and Liabilities | Regulatory assets and liabilities are comprised of the following: December 31, Remaining Recovery 2015 2014 Periods Assets Income taxes $ 18,389 $ 15,800 Various Postretirement benefits 9,819 12,493 5 – 10 years Unrealized swap losses 2,481 2,561 1 – 14 years Utility plant retirement costs 2,247 1,561 5 years Service life study expenses 3 5 2 years Rate case filing expenses 57 194 1 years 32,996 32,614 Liabilities IRS TPR catch-up deduction 3,887 4,314 Not yet known Income taxes 776 806 1 – 50 years $ 4,663 $ 5,120 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Provisions for Income Taxes | The provisions for income taxes consist of: 2015 2014 2013 Federal current $ 1,873 $ 96 $ 2,720 State current 597 28 1,153 Federal deferred 2,131 3,757 1,907 State deferred 177 1,035 71 Federal investment tax credit, net of current utilization (38 ) (39 ) (39 ) Total income taxes $ 4,740 $ 4,877 $ 5,812 |
Reconciliation of Statutory Federal Tax Provision to Total Provision | A reconciliation of the statutory Federal tax provision (34%) to the total provision follows: 2015 2014 2013 Statutory Federal tax provision $ 5,858 $ 5,563 $ 5,258 State income taxes, net of Federal benefit 511 702 808 IRS TPR ongoing deduction (1,438 ) (1,342 ) - Tax-exempt interest (37 ) (37 ) (34 ) Amortization of investment tax credit (38 ) (39 ) (39 ) Cash value of life insurance 71 15 (32 ) Domestic production deduction (190 ) - (154 ) Other, net 3 15 5 Total income taxes $ 4,740 $ 4,877 $ 5,812 |
Deferred Tax Assets and Liabilities | The tax effects of temporary differences between book and tax balances that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2015 and 2014 are summarized in the following table: 2015 2014 Deferred tax assets: Reserve for doubtful accounts $ 128 $ 132 Compensated absences 221 209 Deferred compensation 1,465 1,452 Customers' advances and contributions 1 8 Deferred taxes associated with the gross-up of revenues necessary to return, in rates, the effect of temporary differences 122 123 Pensions 3,099 4,185 Tax loss carryover - 836 Contribution carryover 147 183 Other costs deducted for book, not for tax 51 49 Total deferred tax assets 5,234 7,177 Deferred tax liabilities: Accelerated depreciation 36,210 34,000 Basis differences from IRS TPR 7,196 5,917 Investment tax credit 413 436 Deferred taxes associated with the gross-up of revenues necessary to recover, in rates, the effect of temporary differences 7,271 6,210 Tax effect of pension regulatory asset 3,986 5,071 Other costs deducted for tax, not for book 438 509 Total deferred tax liabilities 55,514 52,143 Net deferred tax liability $ 50,280 $ 44,966 Reflected on balance sheets as: Current deferred tax asset $ (215 ) $ (1,058 ) Noncurrent deferred tax liability 50,495 46,024 Net deferred tax liability $ 50,280 $ 44,966 |
Long-Term Debt and Short-Term24
Long-Term Debt and Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt and Short-Term Borrowings [Abstract] | |
Long-Term Debt | Long-term debt as of December 31, 2015 and 2014 is summarized in the following table: 2015 2014 4.05% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A, due 2016 $ - $ 2,350 5.00% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A, due 2016 - 4,950 10.17% Senior Notes, Series A, due 2019 6,000 6,000 9.60% Senior Notes, Series B, due 2019 5,000 5,000 1.00% Pennvest Loan, due 2019 162 205 10.05% Senior Notes, Series C, due 2020 6,500 6,500 8.43% Senior Notes, Series D, due 2022 7,500 7,500 Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series 2008A, due 2029 12,000 12,000 4.75% York County Industrial Development Authority Revenue Bonds, Series 2006, due 2036 10,500 10,500 4.50% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2014, due 2038 14,880 14,880 5.00% Monthly Senior Notes, Series 2010A, due 2040 15,000 15,000 4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 10,000 - Total long-term debt 87,542 84,885 Less discount on issuance of long-term debt (237 ) - Less current maturities (44 ) (43 ) Long-term portion $ 87,261 $ 84,842 |
Payments Due by Year | Payments due by year: 2016 2017 2018 2019 2020 $ 44 $ 12,044 $ 44 $ 11,030 $ 6,500 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans [Abstract] | |
Obligations and Funded Status | The following table sets forth the plans' funded status as of December 31, 2015 and 2014. The measurement of assets and obligations of the plans is as of December 31, 2015 and 2014. Obligations and Funded Status At December 31 2015 2014 Change in Benefit Obligation Pension benefit obligation beginning of year $ 40,884 $ 32,054 Service cost 1,166 952 Interest cost 1,515 1,444 Actuarial (gain) loss (2,873 ) 7,762 Plan amendments - (210 ) Benefit payments (1,223 ) (1,118 ) Pension benefit obligation end of year 39,469 40,884 Change in Plan Assets Fair value of plan assets beginning of year 30,575 27,102 Actual return on plan assets 183 2,409 Employer contributions 2,300 2,182 Benefits paid (1,223 ) (1,118 ) Fair value of plan assets end of year 31,835 30,575 Funded Status of Plans at End of Year $ (7,634 ) $ (10,309 ) |
Changes in Plan Assets and Benefit Obligations Recognized in Regulatory Assets | Changes in plan assets and benefit obligations recognized in regulatory assets are as follows: 2015 2014 Net (gain) loss arising during the period $ (826 ) $ 7,339 Recognized net actuarial loss (705 ) (126 ) Recognized prior service credit (cost) 13 (197 ) Total changes in regulatory asset during the year $ (1,518 ) $ 7,016 |
Amounts Recognized in Regulatory Assets That Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost | Amounts recognized in regulatory assets that have not yet been recognized as components of net periodic benefit cost consist of the following at December 31: 2015 2014 Net loss $ 10,447 $ 11,978 Prior service (credit) cost (127 ) (140 ) Regulatory asset $ 10,320 $ 11,838 |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost are as follows: 2015 2014 2013 Service cost $ 1,166 $ 952 $ 1,188 Interest cost 1,515 1,444 1,280 Expected return on plan assets (2,229 ) (1,986 ) (1,644 ) Amortization of loss 705 126 698 Amortization of prior service (credit) cost (13 ) (13 ) 10 Rate-regulated adjustment 1,156 1,659 61 Net periodic benefit cost $ 2,300 $ 2,182 $ 1,593 |
Regulatory Assets to be Reclassified into Net Periodic Benefit Cost Over Next Fiscal Year | The estimated costs for the defined benefit pension plans relating to the December 31, 2015 balance sheet that will be amortized from regulatory assets into net periodic benefit cost over the next fiscal year are as follows: Net loss $ 554 Net prior service credit (13 ) 541 |
Benefit Payments Expected to be Paid | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in each of the next five years and the subsequent five years in the aggregate: 2016 2017 2018 2019 2020 2021-2025 $ 1,591 $ 1,592 $ 1,725 $ 1,862 $ 1,875 $ 10,785 |
Projected Benefit Obligation and Fair Value of Plan Assets | The following tables show the projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets as of December 31: 2015 2014 Projected benefit obligation $ 39,469 $ 40,884 Fair value of plan assets 31,835 30,575 |
Accumulated Benefit Obligation and Fair Value of Plan Assets | 2015 2014 Accumulated benefit obligation $ 36,302 $ 37,500 Fair value of plan assets 31,835 30,575 |
Weighted-Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | Weighted-average assumptions used to determine benefit obligations at December 31: 2015 2014 Discount rate 4.20 % 3.80 % Rate of compensation increase 2.50% - 3.00 % 3.00 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: 2015 2014 2013 Discount rate 3.80 % 4.65 % 3.75 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase 3.00 % 3.00 % 3.00 % |
Fair Values of Pension Plan Assets | The fair values of the Company's pension plan assets at December 31, 2015 and 2014 by asset category and fair value hierarchy level are as follows. The majority of the valuations are based on quoted prices on active markets (Level 1), with the remaining valuations based on broker/dealer quotes, active market makers, models, and yield curves (Level 2). Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Asset Category 2015 2014 2015 2014 2015 2014 Cash and Money Market Funds (a) $ 1,205 $ 1,064 $ 1,205 $ 1,064 $ - $ - Equity Securities: Common Equity Securities (b) 2,686 3,031 2,686 3,031 - - Equity Mutual Funds (c) 18,017 16,380 18,017 16,380 - - Fixed Income Securities: U.S. Treasury Obligations 833 831 - - 833 831 Corporate and Foreign Bonds (d) 3,427 1,620 - - 3,427 1,620 Fixed Income Mutual Funds (e) 5,667 7,649 5,667 7,649 - - Total Plan Assets $ 31,835 $ 30,575 $ 27,575 $ 28,124 $ 4,260 $ 2,451 (a) The portfolios are designed to keep approximately three months of distributions in immediately available funds. The Company was more heavily-weighted in cash as of December 31, 2015 due to market volatility (b) This category includes investments in U.S. common stocks and foreign stocks trading in the U.S. widely distributed among consumer discretionary, consumer staples, healthcare, information technology, financial services, materials, industrials and energy. The individual stocks are primarily large cap stocks which track with the S&P 500 with the exception of $447 in 2014 which was invested in York Water Company common stock. In 2015, the Company repurchased the company stock previously held in the pension portfolio. (c) This category currently includes a majority of investments in closed-end mutual funds as well as domestic equity mutual funds and international mutual funds which give the portfolio exposure to mid and large cap index funds as well as international diversified index funds. (d) This category currently includes only U.S. corporate bonds and notes widely distributed among consumer discretionary, consumer staples, healthcare, information technology and financial services. (e) This category includes fixed income investments in mutual funds which include government, corporate and mortgage securities of both the U.S. and other countries. The mortgage-backed securities and non-U.S. corporate and sovereign investments add further diversity to the fixed income portion of the portfolio. |
Notes Receivable and Customer26
Notes Receivable and Customers' Advances for Construction (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Receivable and Customers' Advances for Construction [Abstract] | |
Amounts Related to Water District Projects | Included in the accompanying balance sheets at December 31, 2015 and 2014 were the following amounts related to these projects. 2015 2014 Notes receivable, including interest $ 255 $ 266 Customers' advances for construction 310 626 |
Fair Value of Financial Instr27
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Interest Rate Swap | The Company has recorded its interest rate swap liability at fair value in accordance with the standards. The liability is recorded under the caption "Other deferred credits" on the balance sheets. The table below illustrates the fair value of the interest rate swap as of the end of the reporting period. Description December 31, 2015 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,511 $2,511 Fair values are measured as the present value of all expected future cash flows based on the LIBOR-based swap yield curve as of the date of the valuation. These inputs to this calculation are deemed to be Level 2 inputs. The balance sheet carrying value reflects the Company's credit quality as of December 31, 2015. The rate used in discounting all prospective cash flows anticipated to be made under this swap reflects a representation of the yield to maturity for 30-year debt on utilities rated A- as of December 31, 2015. The use of the Company's credit quality resulted in a reduction in the swap liability of $172. The fair value of the swap reflecting the Company's credit quality as of December 31, 2014 is shown in the table below. Description December 31, 2014 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,592 $2,592 |
Taxes Other than Income Taxes (
Taxes Other than Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Taxes Other than Income Taxes [Abstract] | |
Components of Taxes Other than Income Taxes | The following table provides the components of taxes other than income taxes: 2015 2014 2013 Regulatory Assessment $ 242 $ 218 $ 220 Property 334 339 364 Payroll, net of amounts capitalized 510 494 462 Capital Stock 42 59 75 Other 1 1 1 Total taxes other than income taxes $ 1,129 $ 1,111 $ 1,122 |
Selected Quarterly Financial 29
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Data (Unaudited) [Abstract] | |
Selected Quarterly Financial Data | First Second Third Fourth Year 2015 Operating revenues $ 11,209 $ 11,895 $ 12,368 $ 11,617 $ 47,089 Operating income 5,134 5,682 6,353 5,492 22,661 Net income 2,528 2,925 3,520 3,516 12,489 Basic earnings per share 0.20 0.22 0.28 0.27 0.97 Dividends declared per share 0.1495 0.1495 0.1495 0.1555 0.6040 2014 Operating revenues $ 10,571 $ 11,768 $ 12,062 $ 11,499 $ 45,900 Operating income 4,758 5,800 6,092 5,427 22,077 Net income * 2,111 2,757 3,065 3,551 11,484 Basic earnings per share 0.16 0.22 0.23 0.28 0.89 Dividends declared per share 0.1431 0.1431 0.1431 0.1495 0.5788 * Fourth quarter net income includes a tax benefit of $1,342 for the full year 2014 due to the implementation of the IRS TPR. |
Significant Accounting Polici30
Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)System | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Significant Accounting Policies [Abstract] | |||
Number of wastewater collection and treatment systems operated | System | 2 | ||
Utility Plant and Depreciation [Abstract] | |||
Utility plant acquisition adjustments | $ 3,724 | $ 3,522 | |
Amortization of utility plant acquisition adjustments | 58 | 54 | $ 50 |
Utility Plant | $ 329,415 | $ 316,525 | |
Effective rate of depreciation | 2.24% | 2.26% | 2.28% |
Regulatory Assets [Abstract] | |||
Regulatory assets | $ 32,996 | $ 32,614 | |
Regulatory Liabilities [Abstract] | |||
Regulatory liabilities | 4,663 | 5,120 | |
Interest Rate Swap Agreement [Abstract] | |||
Interest rate swap settlements reclassified to interest expense | 366 | 368 | $ 366 |
Interest rate swap (gain) loss capitalized | 285 | 1,318 | $ (830) |
Interest rate swap settlements to be reclassified during the next 12 months | $ 328 | ||
Interest rate swap expire period | Oct. 1, 2029 | ||
Income Taxes [Abstract] | |||
Deferred investment tax credits | $ 696 | $ 734 | |
Allowance for Funds Used During Construction [Abstract] | |||
PPUC approved rate for AFUDC | 10.04% | 10.04% | 10.04% |
Minimum [Member] | |||
Allowance for Funds Used During Construction [Abstract] | |||
Allowance for tax-exempt funds rate used during construction | 4.00% | ||
Maximum [Member] | |||
Allowance for Funds Used During Construction [Abstract] | |||
Allowance for tax-exempt funds rate used during construction | 4.50% | ||
IRS TPR Catch-Up Deduction [Member] | |||
Regulatory Liabilities [Abstract] | |||
Regulatory liabilities | $ 3,887 | $ 4,314 | |
Income Taxes [Member] | |||
Regulatory Liabilities [Abstract] | |||
Regulatory liabilities | $ 776 | 806 | |
Income Taxes [Member] | Minimum [Member] | |||
Regulatory Liabilities [Abstract] | |||
Remaining recovery periods | 1 year | ||
Income Taxes [Member] | Maximum [Member] | |||
Regulatory Liabilities [Abstract] | |||
Remaining recovery periods | 50 years | ||
Income Taxes [Member] | |||
Regulatory Assets [Abstract] | |||
Regulatory assets | $ 18,389 | 15,800 | |
Postretirement Benefits [Member] | |||
Regulatory Assets [Abstract] | |||
Regulatory assets | $ 9,819 | 12,493 | |
Postretirement Benefits [Member] | Minimum [Member] | |||
Regulatory Assets [Abstract] | |||
Remaining recovery periods | 5 years | ||
Postretirement Benefits [Member] | Maximum [Member] | |||
Regulatory Assets [Abstract] | |||
Remaining recovery periods | 10 years | ||
Unrealized Swap Losses [Member] | |||
Regulatory Assets [Abstract] | |||
Regulatory assets | $ 2,481 | 2,561 | |
Unrealized Swap Losses [Member] | Minimum [Member] | |||
Regulatory Assets [Abstract] | |||
Remaining recovery periods | 1 year | ||
Unrealized Swap Losses [Member] | Maximum [Member] | |||
Regulatory Assets [Abstract] | |||
Remaining recovery periods | 14 years | ||
Utility Plant Retirement Costs [Member] | |||
Regulatory Assets [Abstract] | |||
Regulatory assets | $ 2,247 | 1,561 | |
Remaining recovery periods | 5 years | ||
Service Life Study Expenses [Member] | |||
Regulatory Assets [Abstract] | |||
Regulatory assets | $ 3 | 5 | |
Remaining recovery periods | 2 years | ||
Rate Case Filing Expenses [Member] | |||
Regulatory Assets [Abstract] | |||
Regulatory assets | $ 57 | 194 | |
Remaining recovery periods | 1 year | ||
Mains and Accessories [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Utility Plant | $ 170,991 | 164,627 | |
Mains and Accessories [Member] | Minimum [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Approximate range of remaining lives | 10 years | ||
Mains and Accessories [Member] | Maximum [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Approximate range of remaining lives | 83 years | ||
Services, meters and hydrants [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Utility Plant | $ 66,267 | 63,479 | |
Services, meters and hydrants [Member] | Minimum [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Approximate range of remaining lives | 19 years | ||
Services, meters and hydrants [Member] | Maximum [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Approximate range of remaining lives | 55 years | ||
Operations structures, reservoirs and water tanks [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Utility Plant | $ 44,739 | 43,654 | |
Operations structures, reservoirs and water tanks [Member] | Minimum [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Approximate range of remaining lives | 12 years | ||
Operations structures, reservoirs and water tanks [Member] | Maximum [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Approximate range of remaining lives | 38 years | ||
Pumping and Treatment Equipment [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Utility Plant | $ 27,664 | 25,616 | |
Pumping and Treatment Equipment [Member] | Minimum [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Approximate range of remaining lives | 3 years | ||
Pumping and Treatment Equipment [Member] | Maximum [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Approximate range of remaining lives | 34 years | ||
Office, transportation and operating equipment [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Utility Plant | $ 11,725 | 11,216 | |
Office, transportation and operating equipment [Member] | Minimum [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Approximate range of remaining lives | 3 years | ||
Office, transportation and operating equipment [Member] | Maximum [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Approximate range of remaining lives | 21 years | ||
Land and other non-depreciable assets [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Utility Plant | $ 3,172 | 3,166 | |
Approximate range of remaining lives | 0 years | ||
Utility plant in service [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Utility Plant | $ 324,558 | 311,758 | |
Construction work in progress [Member] | |||
Utility Plant and Depreciation [Abstract] | |||
Utility Plant | $ 4,857 | $ 4,767 | |
Approximate range of remaining lives | 0 years |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Customer | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Acquisitions [Abstract] | |||
Purchase price | $ 352 | $ 369 | $ 28 |
Windy Brae Mobile Home Park [Member] | |||
Acquisitions [Abstract] | |||
Date of agreement | Mar. 7, 2013 | ||
Effective date of acquisition | Mar. 11, 2013 | ||
Number of customers acquired | Customer | 135 | ||
Purchase price | $ 29 | ||
Acquisition adjustment | $ 45 | ||
Wastewater Facilities of East Prospect Borough Authority [Member] | |||
Acquisitions [Abstract] | |||
Date of agreement | Feb. 7, 2014 | ||
Effective date of acquisition | Feb. 8, 2014 | ||
Number of customers acquired | Customer | 400 | ||
Purchase price | $ 281 | ||
Change in acquisition adjustment | 2 | ||
Acquisition adjustment | $ 665 | 667 | |
Water Assets of Forest Lakes Water Association [Member] | |||
Acquisitions [Abstract] | |||
Date of agreement | May 30, 2014 | ||
Effective date of acquisition | Jun. 2, 2014 | ||
Number of customers acquired | Customer | 70 | ||
Purchase price | $ 18 | ||
Change in acquisition adjustment | 2 | ||
Acquisition adjustment | $ 7 | $ 9 | |
Water Assets of Lincoln Estates Mobile Home Park [Member] | |||
Acquisitions [Abstract] | |||
Date of agreement | Nov. 20, 2014 | ||
Effective date of acquisition | Nov. 24, 2014 | ||
Number of customers acquired | Customer | 200 | ||
Purchase price | $ 70 | ||
Acquisition adjustment | $ 77 | ||
Water Assets of The Meadows [Member] | |||
Acquisitions [Abstract] | |||
Date of agreement | Apr. 9, 2015 | ||
Effective date of acquisition | Apr. 13, 2015 | ||
Number of customers acquired | Customer | 90 | ||
Purchase price | $ 63 | ||
Acquisition adjustment | $ 159 | ||
Water Assets of Paradise Homes Community [Member] | |||
Acquisitions [Abstract] | |||
Date of agreement | Apr. 22, 2015 | ||
Effective date of acquisition | Apr. 27, 2015 | ||
Number of customers acquired | Customer | 90 | ||
Purchase price | $ 36 | ||
Acquisition adjustment | $ 28 | ||
Water Assets of Newberry Farms Mobile Home Park [Member] | |||
Acquisitions [Abstract] | |||
Date of agreement | Oct. 19, 2015 | ||
Effective date of acquisition | Oct. 22, 2015 | ||
Number of customers acquired | Customer | 160 | ||
Purchase price | $ 116 | ||
Water Assets of Margaretta Mobile Home Park [Member] | |||
Acquisitions [Abstract] | |||
Date of agreement | Nov. 2, 2015 | ||
Effective date of acquisition | Nov. 3, 2015 | ||
Number of customers acquired | Customer | 65 | ||
Purchase price | $ 133 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Position | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Provisions for Income Taxes [Abstract] | |||
Federal current | $ 1,873 | $ 96 | $ 2,720 |
State current | 597 | 28 | 1,153 |
Federal deferred | 2,131 | 3,757 | 1,907 |
State deferred | 177 | 1,035 | 71 |
Federal investment tax credit, net of current utilization | (38) | (39) | (39) |
Total income taxes | $ 4,740 | $ 4,877 | $ 5,812 |
Reconciliation of Statutory Federal Tax Provision to Total Provision [Abstract] | |||
Statutory Federal tax percentage | 34.00% | 34.00% | 34.00% |
Statutory Federal tax provision | $ 5,858 | $ 5,563 | $ 5,258 |
State income taxes, net of Federal benefit | 511 | 702 | 808 |
IRS TPR ongoing deduction | (1,438) | (1,342) | 0 |
Tax-exempt interest | (37) | (37) | (34) |
Amortization of investment tax credit | (38) | (39) | (39) |
Cash value of life insurance | 71 | 15 | (32) |
Domestic production deduction | (190) | 0 | (154) |
Other, net | 3 | 15 | 5 |
Total income taxes | 4,740 | 4,877 | 5,812 |
Regulatory Liabilities [Abstract] | |||
Regulatory liabilities | 4,663 | 5,120 | |
Deferred Tax Assets [Abstract] | |||
Reserve for doubtful accounts | 128 | 132 | |
Compensated absences | 221 | 209 | |
Deferred compensation | 1,465 | 1,452 | |
Customers' advances and contributions | 1 | 8 | |
Deferred taxes associated with the gross-up of revenues necessary to return, in rates, the effect of temporary differences | 122 | 123 | |
Pensions | 3,099 | 4,185 | |
Tax loss carryover | 0 | 836 | |
Contribution carryover | 147 | 183 | |
Other costs deducted for book, not for tax | 51 | 49 | |
Total deferred tax assets | 5,234 | 7,177 | |
Deferred Tax Liabilities [Abstract] | |||
Accelerated depreciation | 36,210 | 34,000 | |
Basis differences from IRS TPR | 7,196 | 5,917 | |
Investment tax credit | 413 | 436 | |
Deferred taxes associated with the gross-up of revenues necessary to recover, in rates, the effect of temporary differences | 7,271 | 6,210 | |
Tax effect of pension regulatory asset | 3,986 | 5,071 | |
Other costs deducted for tax, not for book | 438 | 509 | |
Total deferred tax liabilities | 55,514 | 52,143 | |
Net deferred tax liability | 50,280 | 44,966 | |
Reflected on Balance Sheets as [Abstract] | |||
Current deferred tax asset | (215) | (1,058) | |
Noncurrent deferred tax liability | 50,495 | 46,024 | |
Net deferred tax liability | 50,280 | 44,966 | |
Other Income Tax Disclosures [Abstract] | |||
Contribution carryovers | $ 363 | ||
Contribution carryovers, expiration date | Dec. 31, 2019 | ||
Uncertain tax positions | $ 0 | ||
Number of new tax positions taken | Position | 0 | ||
Interest or penalties | $ 0 | 0 | $ 0 |
Maximum [Member] | |||
Other Income Tax Disclosures [Abstract] | |||
Open tax year | 2,014 | ||
Minimum [Member] | |||
Other Income Tax Disclosures [Abstract] | |||
Open tax year | 2,012 | ||
Valuation Allowance of Deferred Tax Assets [Member] | |||
Other Income Tax Disclosures [Abstract] | |||
Valuation allowance | $ 0 | 0 | |
IRS TPR Catch-Up Deduction [Member] | |||
Regulatory Liabilities [Abstract] | |||
Regulatory liabilities | $ 3,887 | $ 4,314 |
Long-Term Debt and Short-Term33
Long-Term Debt and Short-Term Borrowings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Bank | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Long-term Debt [Abstract] | |||
Long-term debt | $ 87,542 | $ 84,885 | |
Less discount on issuance of long-term debt | (237) | 0 | |
Less current maturities | (44) | (43) | |
Long-term portion | 87,261 | 84,842 | |
Payments Due by Year [Abstract] | |||
2,016 | 44 | ||
2,017 | 12,044 | ||
2,018 | 44 | ||
2,019 | 11,030 | ||
2,020 | 6,500 | ||
Line of Credit Facility [Abstract] | |||
Unsecured lines of credit aggregating amount | $ 29,000 | ||
Number of banks in which unsecured line of credit maintained | Bank | 3 | ||
Debt Covenants and Restrictions [Abstract] | |||
Maximum borrowing percentage of utility plant | 60.00% | ||
Base amount added to annual net income to determine restriction on dividends and stock acquisition | $ 1,500 | ||
Unsecured Line of Credit, First Note [Member] | |||
Line of Credit Facility [Abstract] | |||
Unsecured lines of credit aggregating amount | $ 13,000 | ||
Line of credit, maturity period | 2 years | ||
Line of credit, maturity date | May 1, 2017 | ||
Line of credit amount outstanding | $ 0 | 0 | |
Unsecured Line of Credit, First Note [Member] | LIBOR [Member] | |||
Line of Credit Facility [Abstract] | |||
Basis for interest rate | 1.20% | ||
Unsecured Line of Credit, Second Note [Member] | |||
Line of Credit Facility [Abstract] | |||
Unsecured lines of credit aggregating amount | $ 11,000 | ||
Line of credit, maturity date | May 1, 2017 | ||
Line of credit compensating balance requirement | $ 0 | 0 | $ 500 |
Line of credit amount outstanding | $ 0 | 0 | |
Unsecured Line of Credit, Second Note [Member] | LIBOR [Member] | |||
Line of Credit Facility [Abstract] | |||
Basis for interest rate | 1.25% | ||
Unsecured Line of Credit, Third Note [Member] | |||
Line of Credit Facility [Abstract] | |||
Unsecured lines of credit aggregating amount | $ 5,000 | ||
Line of credit, maturity date | Jun. 1, 2016 | ||
Line of credit amount outstanding | $ 0 | 0 | |
Unsecured Line of Credit, Third Note [Member] | LIBOR [Member] | |||
Line of Credit Facility [Abstract] | |||
Basis for interest rate | 1.50% | ||
Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A, due 2016, 4.05 Percent [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 0 | 2,350 | |
Interest rate | 4.05% | ||
Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A, due 2016, 5.00 Percent [Member | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 0 | 4,950 | |
Interest rate | 5.00% | ||
Senior Notes, Series A, due 2019, 10.17 percent [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 6,000 | 6,000 | |
Interest rate | 10.17% | ||
Senior Notes, Series B, due 2019, 9.6 percent [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 5,000 | 5,000 | |
Interest rate | 9.60% | ||
Pennvest Loan, due 2019, 1.00 percent [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 162 | 205 | |
Interest rate | 1.00% | ||
Debt Covenants and Restrictions [Abstract] | |||
Amount of receivables pledged as collateral | $ 800 | ||
Senior Notes, Series C, due 2020, 10.05 percent [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 6,500 | 6,500 | |
Interest rate | 10.05% | ||
Senior Notes, Series D, due 2022, 8.43 percent [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 7,500 | 7,500 | |
Interest rate | 8.43% | ||
Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds Series 2008A due 2029 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 12,000 | $ 12,000 | |
Payments Due by Year [Abstract] | |||
2,017 | 12,000 | ||
Long-Term Debt [Abstract] | |||
Face value | $ 12,000 | ||
Variable interest rate, annual average | 0.06% | 0.07% | |
Variable interest rate, at year end | 0.02% | 0.05% | |
Period in which to reimburse bank for purchase price of tendered bonds that have not been remarketed | 14 months | ||
Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds Series 2008A due 2029 [Member] | Interest Rate Swap [Member] | |||
Interest Rate Swap Agreement [Abstract] | |||
Notional amount of swap | $ 12,000 | ||
Potential payment to counterparty | $ 2,683 | ||
Fixed interest rate | 3.16% | ||
Net payment rate on swap | 3.06% | 3.07% | |
Interest rate spread in basis points | (0.18%) | (0.05%) | |
Overall effective rate, including variable interest and swap payments | 2.98% | 3.11% | |
Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds Series 2008A due 2029 [Member] | LIBOR [Member] | Interest Rate Swap [Member] | |||
Interest Rate Swap Agreement [Abstract] | |||
Percentage of variable interest rate | 59.00% | ||
Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds Series 2008A due 2029 [Member] | Letter of Credit [Member] | |||
Line of Credit Facility [Abstract] | |||
Line of credit, maturity date | Jun. 30, 2017 | ||
Industrial Development Authority Revenue Bonds, series 2006, due 2036, 4.75 percent [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 10,500 | $ 10,500 | |
Interest rate | 4.75% | ||
4.50% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2014, due 2038 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 14,880 | 14,880 | |
Interest rate | 4.50% | ||
Long-Term Debt [Abstract] | |||
Special provision, amount to be redeemed per individual interest, per year, maximum | $ 25 | ||
Special provision, amount to be redeemed in the aggregate, per year, maximum | 300 | ||
Special provision, repayment of bonds | 0 | ||
Face value | 14,880 | ||
Monthly Senior Notes, Series 2010A, due 2040, 5.00 percent [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 15,000 | 15,000 | |
Interest rate | 5.00% | ||
4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 [Member] | |||
Long-term Debt [Abstract] | |||
Long-term debt | $ 10,000 | $ 0 | |
Long-Term Debt [Abstract] | |||
Proceeds from debt, net of issuance costs | 9,500 | ||
Face value | $ 10,000 | ||
4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 [Member] | Maximum [Member] | |||
Long-term Debt [Abstract] | |||
Interest rate | 4.50% | ||
4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 [Member] | Minimum [Member] | |||
Long-term Debt [Abstract] | |||
Interest rate | 4.00% | ||
Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series 2008B, due 2038, 6.00 percent [Member] | |||
Long-term Debt [Abstract] | |||
Interest rate | 6.00% |
Common Stock and Earnings Per34
Common Stock and Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common Stock and Earnings Per Share [Abstract] | |||
Weighted average number of shares outstanding (in shares) | 12,831,687 | 12,879,912 | 12,928,040 |
Common Stock [Abstract] | |||
Number of shares authorized to be repurchased under the stock repurchase program (in shares) | 1,200,000 | ||
Number of shares repurchased and retired under the stock repurchase program (in shares) | 121,012 | 282,570 | 94,414 |
Number of remaining shares authorized to be repurchased under the stock repurchase program (in shares) | 702,004 | ||
Employee Stock Purchase Plan [Member] | |||
Common Stock [Abstract] | |||
Minimum service period required to purchase shares | 90 days | ||
Maximum gross compensation allocated to purchase shares | 10.00% | ||
Percentage of purchase price of fair market value | 95.00% | ||
Shares issued during period (in shares) | 7,417 | 7,431 | 6,711 |
Number of authorized shares remains unissued (in shares) | 80,711 | ||
Direct Stock Purchase and Sale Portion of Plan [Member] | |||
Common Stock [Abstract] | |||
Percentage of purchase price of fair market value | 100.00% | ||
Optional Dividend Reinvestment Portion of Plan [Member] | |||
Common Stock [Abstract] | |||
Percentage of purchase price of fair market value | 95.00% | ||
2008 Dividend Reinvestment and Direct Stock Purchase and Sale Plan [Member] | |||
Common Stock [Abstract] | |||
Shares issued during period (in shares) | 0 | 0 | 112,163 |
2013 Dividend Reinvestment and Direct Stock Purchase Plan [Member] | |||
Common Stock [Abstract] | |||
Shares authorized under registration statement (in shares) | 500,000 | ||
Shares issued during period (in shares) | 95,451 | 126,379 | 36,188 |
Number of authorized shares remains unissued (in shares) | 241,982 |
Employee Benefit Plans, Changes
Employee Benefit Plans, Changes in Benefit Obligation and Plan Assets (Details) - Defined Benefit Pension Plans Combined [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Employee Benefit Plans [Abstract] | ||||
Maximum period of eligible service | 30 years | |||
Change in discount rate | 0.40% | (0.85%) | ||
Threshold for amortization of gains and losses | 10.00% | |||
Estimated employer contributions | $ 2,300 | |||
Change in Benefit Obligation [Abstract] | ||||
Pension benefit obligation beginning of year | 40,884 | $ 32,054 | ||
Service cost | 1,166 | 952 | $ 1,188 | |
Interest cost | 1,515 | 1,444 | 1,280 | |
Actuarial (gain) loss | (2,873) | 7,762 | ||
Plan amendments | 0 | (210) | ||
Benefit payments | (1,223) | (1,118) | ||
Pension benefit obligation end of year | 39,469 | 40,884 | 32,054 | |
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | 30,575 | 27,102 | ||
Actual return on plan assets | 183 | 2,409 | ||
Employer contributions | 2,300 | 2,182 | ||
Benefits paid | (1,223) | (1,118) | ||
Fair value of plan assets end of year | 31,835 | 30,575 | 27,102 | |
Funded Status of Plans at End of Year | (7,634) | (10,309) | ||
Changes in Plan Assets and Benefit Obligations Recognized in Regulatory Assets [Abstract] | ||||
Net (gain) loss arising during the period | (826) | 7,339 | ||
Recognized net actuarial loss | (705) | (126) | (698) | |
Recognized prior service credit (cost) | 13 | (197) | ||
Total changes in regulatory asset during the year | (1,518) | 7,016 | ||
Amounts Recognized in Regulatory Assets that Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost [Abstract] | ||||
Net loss | 10,447 | 11,978 | ||
Prior service (credit) cost | (127) | (140) | ||
Regulatory asset | 10,320 | 11,838 | ||
Components of Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 1,166 | 952 | 1,188 | |
Interest cost | 1,515 | 1,444 | 1,280 | |
Expected return on plan assets | (2,229) | (1,986) | (1,644) | |
Amortization of loss | 705 | 126 | 698 | |
Amortization of prior service (credit) cost | (13) | (13) | 10 | |
Rate-regulated adjustment | 1,156 | 1,659 | 61 | |
Net periodic benefit cost | 2,300 | 2,182 | $ 1,593 | |
Change in defined benefit plan regulatory asset from pension contribution greater (less) than net periodic benefit cost | 1,156 | |||
Cash and Money Market Funds [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [1] | 1,064 | ||
Fair value of plan assets end of year | [1] | 1,205 | 1,064 | |
Common Equity Securities [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [2] | 3,031 | ||
Fair value of plan assets end of year | [2] | 2,686 | 3,031 | |
Equity Mutual Funds [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [3] | 16,380 | ||
Fair value of plan assets end of year | [3] | 18,017 | 16,380 | |
U.S. Treasury Obligations [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | 831 | |||
Fair value of plan assets end of year | 833 | 831 | ||
Corporate and Foreign Bonds [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [4] | 1,620 | ||
Fair value of plan assets end of year | [4] | 3,427 | 1,620 | |
Fixed Income Mutual Funds [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [5] | 7,649 | ||
Fair value of plan assets end of year | [5] | 5,667 | 7,649 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | 28,124 | |||
Fair value of plan assets end of year | 27,575 | 28,124 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Money Market Funds [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [1] | 1,064 | ||
Fair value of plan assets end of year | [1] | 1,205 | 1,064 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Common Equity Securities [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [2] | 3,031 | ||
Fair value of plan assets end of year | [2] | 2,686 | 3,031 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Mutual Funds [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [3] | 16,380 | ||
Fair value of plan assets end of year | [3] | 18,017 | 16,380 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Obligations [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | 0 | |||
Fair value of plan assets end of year | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate and Foreign Bonds [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [4] | 0 | ||
Fair value of plan assets end of year | [4] | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Mutual Funds [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [5] | 7,649 | ||
Fair value of plan assets end of year | [5] | 5,667 | 7,649 | |
Significant Other Observable Inputs (Level 2) [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | 2,451 | |||
Fair value of plan assets end of year | 4,260 | 2,451 | ||
Significant Other Observable Inputs (Level 2) [Member] | Cash and Money Market Funds [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [1] | 0 | ||
Fair value of plan assets end of year | [1] | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Common Equity Securities [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [2] | 0 | ||
Fair value of plan assets end of year | [2] | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Equity Mutual Funds [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [3] | 0 | ||
Fair value of plan assets end of year | [3] | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Obligations [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | 831 | |||
Fair value of plan assets end of year | 833 | 831 | ||
Significant Other Observable Inputs (Level 2) [Member] | Corporate and Foreign Bonds [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [4] | 1,620 | ||
Fair value of plan assets end of year | [4] | 3,427 | 1,620 | |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Income Mutual Funds [Member] | ||||
Change in Plan Assets [Abstract] | ||||
Fair value of plan assets beginning of year | [5] | 0 | ||
Fair value of plan assets end of year | [5] | $ 0 | $ 0 | |
[1] | The portfolios are designed to keep approximately three months of distributions in immediately available funds. The Company was more heavily-weighted in cash as of December 31, 2015 due to market volatility. | |||
[2] | This category includes investments in U.S. common stocks and foreign stocks trading in the U.S. widely distributed among consumer discretionary, consumer staples, healthcare, information technology, financial services, materials, industrials and energy. The individual stocks are primarily large cap stocks which track with the S&P 500 with the exception of $447 in 2014 which was invested in York Water Company common stock. In 2015, the Company repurchased the company stock previously held in the pension portfolio. | |||
[3] | This category currently includes a majority of investments in closed-end mutual funds as well as domestic equity mutual funds and international mutual funds which give the portfolio exposure to mid and large cap index funds as well as international diversified index funds. | |||
[4] | This category currently includes only U.S. corporate bonds and notes widely distributed among consumer discretionary, consumer staples, healthcare, information technology and financial services. | |||
[5] | This category includes fixed income investments in mutual funds which include government, corporate and mortgage securities of both the U.S. and other countries. The mortgage-backed securities and non-U.S. corporate and sovereign investments add further diversity to the fixed income portion of the portfolio. |
Employee Benefit Plans, Regulat
Employee Benefit Plans, Regulatory Assets through Assumptions (Details) - Defined Benefit Pension Plans Combined [Member] $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)Stock | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||
Regulatory Assets to be Reclassified into Net Periodic Benefit Cost over Next Fiscal Year [Abstract] | ||||
Net loss | $ 554 | |||
Net prior service credit | (13) | |||
Regulatory assets to be reclassified into net periodic benefit cost during the next 12 months | 541 | |||
Benefit Payments Expected to be Paid for Future Services [Abstract] | ||||
2,016 | 1,591 | |||
2,017 | 1,592 | |||
2,018 | 1,725 | |||
2,019 | 1,862 | |||
2,020 | 1,875 | |||
2021-2025 | 10,785 | |||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Projected benefit obligation | 39,469 | $ 40,884 | $ 32,054 | |
Fair value of plan assets | 31,835 | 30,575 | 27,102 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Accumulated benefit obligation | 36,302 | 37,500 | ||
Fair value of plan assets | $ 31,835 | $ 30,575 | $ 27,102 | |
Weighted-Average Assumptions Used to Determine Benefit Obligations [Abstract] | ||||
Discount rate | 4.20% | 3.80% | ||
Rate of compensation increase | 3.00% | |||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost [Abstract] | ||||
Discount rate | 3.80% | 4.65% | 3.75% | |
Expected long-term return on plan assets | 7.00% | 7.00% | 7.00% | |
Rate of compensation increase | 3.00% | 3.00% | 3.00% | |
Target Asset Allocations [Abstract] | ||||
Percentage by which the return on plan assets should exceed the annual rate of inflation | 3.00% | |||
Maximum equity securities holdings in any one company | 5.00% | |||
Minimum number of individual stocks that must be included in the domestic stock portfolio | Stock | 20 | |||
Minimum number of individual stocks that must be included in the international stock portfolio | Stock | 30 | |||
Maximum fixed income securities holdings in any single issuer | 5.00% | |||
Cash and Money Market Funds [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [1] | $ 1,205 | $ 1,064 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [1] | 1,205 | 1,064 | |
Common Equity Securities [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [2] | 2,686 | 3,031 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [2] | 2,686 | 3,031 | |
Equity Mutual Funds [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [3] | 18,017 | 16,380 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [3] | 18,017 | 16,380 | |
U.S. Treasury Obligations [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 833 | 831 | ||
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 833 | 831 | ||
Corporate and Foreign Bonds [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [4] | 3,427 | 1,620 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [4] | 3,427 | 1,620 | |
Fixed Income Mutual Funds [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [5] | 5,667 | 7,649 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [5] | $ 5,667 | 7,649 | |
Minimum [Member] | ||||
Weighted-Average Assumptions Used to Determine Benefit Obligations [Abstract] | ||||
Rate of compensation increase | 2.50% | |||
Target Asset Allocations [Abstract] | ||||
Investment performance objectives benchmark period | 3 years | |||
Maximum equity securities holdings in any one company | 20.00% | |||
Minimum [Member] | Large Cap [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 60.00% | |||
Minimum [Member] | Mid Cap [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 0.00% | |||
Minimum [Member] | Small Cap [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 0.00% | |||
Minimum [Member] | International Developed Nations [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 0.00% | |||
Minimum [Member] | International Emerging Nations [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 0.00% | |||
Minimum [Member] | International [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 0.00% | |||
Minimum [Member] | U.S. Treasuries [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 15.00% | |||
Minimum [Member] | Federal Agency Securities [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 0.00% | |||
Minimum [Member] | Corporate Bonds [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 0.00% | |||
Minimum [Member] | Mortgage-Backed Securities [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 15.00% | |||
Minimum [Member] | High Yield Bonds [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 0.00% | |||
Minimum [Member] | Cash and Money Market Funds [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 0.00% | |||
Minimum [Member] | Equity Securities [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 50.00% | |||
Asset allocation of plan assets | 50.00% | |||
Minimum [Member] | Fixed Income Securities [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 30.00% | |||
Asset allocation of plan assets | 30.00% | |||
Maximum [Member] | ||||
Weighted-Average Assumptions Used to Determine Benefit Obligations [Abstract] | ||||
Rate of compensation increase | 3.00% | |||
Target Asset Allocations [Abstract] | ||||
Investment performance objectives benchmark period | 5 years | |||
Maximum equity securities holdings in any one company | 25.00% | |||
Maximum [Member] | Large Cap [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 95.00% | |||
Maximum [Member] | Mid Cap [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 25.00% | |||
Maximum [Member] | Small Cap [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 10.00% | |||
Maximum [Member] | International Developed Nations [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 25.00% | |||
Maximum [Member] | International Emerging Nations [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 10.00% | |||
Maximum [Member] | International [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 20.00% | |||
Maximum [Member] | U.S. Treasuries [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 55.00% | |||
Maximum [Member] | Federal Agency Securities [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 22.00% | |||
Maximum [Member] | Corporate Bonds [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 40.00% | |||
Maximum [Member] | Mortgage-Backed Securities [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 55.00% | |||
Maximum [Member] | High Yield Bonds [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 20.00% | |||
Maximum [Member] | Cash and Money Market Funds [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 10.00% | |||
Maximum [Member] | Equity Securities [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 70.00% | |||
Asset allocation of plan assets | 70.00% | |||
Maximum [Member] | Fixed Income Securities [Member] | ||||
Target Asset Allocations [Abstract] | ||||
Weighted-average target asset allocations | 50.00% | |||
Asset allocation of plan assets | 50.00% | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | $ 27,575 | 28,124 | ||
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 27,575 | 28,124 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Money Market Funds [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [1] | 1,205 | 1,064 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [1] | 1,205 | 1,064 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Common Equity Securities [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [2] | 2,686 | 3,031 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [2] | 2,686 | 3,031 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Mutual Funds [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [3] | 18,017 | 16,380 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [3] | 18,017 | 16,380 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Obligations [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate and Foreign Bonds [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [4] | 0 | 0 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [4] | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Mutual Funds [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [5] | 5,667 | 7,649 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [5] | 5,667 | 7,649 | |
Significant Other Observable Inputs (Level 2) [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 4,260 | 2,451 | ||
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 4,260 | 2,451 | ||
Significant Other Observable Inputs (Level 2) [Member] | Cash and Money Market Funds [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Common Equity Securities [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [2] | 0 | 0 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [2] | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Equity Mutual Funds [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [3] | 0 | 0 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [3] | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Obligations [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 833 | 831 | ||
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 833 | 831 | ||
Significant Other Observable Inputs (Level 2) [Member] | Corporate and Foreign Bonds [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [4] | 3,427 | 1,620 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [4] | 3,427 | 1,620 | |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Income Mutual Funds [Member] | ||||
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [5] | 0 | 0 | |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | [5] | $ 0 | $ 0 | |
[1] | The portfolios are designed to keep approximately three months of distributions in immediately available funds. The Company was more heavily-weighted in cash as of December 31, 2015 due to market volatility. | |||
[2] | This category includes investments in U.S. common stocks and foreign stocks trading in the U.S. widely distributed among consumer discretionary, consumer staples, healthcare, information technology, financial services, materials, industrials and energy. The individual stocks are primarily large cap stocks which track with the S&P 500 with the exception of $447 in 2014 which was invested in York Water Company common stock. In 2015, the Company repurchased the company stock previously held in the pension portfolio. | |||
[3] | This category currently includes a majority of investments in closed-end mutual funds as well as domestic equity mutual funds and international mutual funds which give the portfolio exposure to mid and large cap index funds as well as international diversified index funds. | |||
[4] | This category currently includes only U.S. corporate bonds and notes widely distributed among consumer discretionary, consumer staples, healthcare, information technology and financial services. | |||
[5] | This category includes fixed income investments in mutual funds which include government, corporate and mortgage securities of both the U.S. and other countries. The mortgage-backed securities and non-U.S. corporate and sovereign investments add further diversity to the fixed income portion of the portfolio. |
Employee Benefit Plans, Fair Va
Employee Benefit Plans, Fair Value of Pension Plan Assets (Details) - Defined Benefit Pension Plans Combined [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | ||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | $ 30,575 | $ 31,835 | $ 27,102 | |
Fair value of plan assets invested in Company stock | 447 | |||
Cash and Money Market Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [1] | 1,064 | 1,205 | |
Common Equity Securities [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [2] | 3,031 | 2,686 | |
Equity Mutual Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [3] | 16,380 | 18,017 | |
U.S. Treasury Obligations [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | 831 | 833 | ||
Corporate and Foreign Bonds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [4] | 1,620 | 3,427 | |
Fixed Income Mutual Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [5] | 7,649 | 5,667 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | 28,124 | 27,575 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Money Market Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [1] | 1,064 | 1,205 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Common Equity Securities [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [2] | 3,031 | 2,686 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Mutual Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [3] | 16,380 | 18,017 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Obligations [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate and Foreign Bonds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [4] | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Mutual Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [5] | 7,649 | 5,667 | |
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | 2,451 | 4,260 | ||
Significant Other Observable Inputs (Level 2) [Member] | Cash and Money Market Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Common Equity Securities [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [2] | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Equity Mutual Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [3] | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Obligations [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | 831 | 833 | ||
Significant Other Observable Inputs (Level 2) [Member] | Corporate and Foreign Bonds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [4] | 1,620 | 3,427 | |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Income Mutual Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [5] | $ 0 | $ 0 | |
[1] | The portfolios are designed to keep approximately three months of distributions in immediately available funds. The Company was more heavily-weighted in cash as of December 31, 2015 due to market volatility. | |||
[2] | This category includes investments in U.S. common stocks and foreign stocks trading in the U.S. widely distributed among consumer discretionary, consumer staples, healthcare, information technology, financial services, materials, industrials and energy. The individual stocks are primarily large cap stocks which track with the S&P 500 with the exception of $447 in 2014 which was invested in York Water Company common stock. In 2015, the Company repurchased the company stock previously held in the pension portfolio. | |||
[3] | This category currently includes a majority of investments in closed-end mutual funds as well as domestic equity mutual funds and international mutual funds which give the portfolio exposure to mid and large cap index funds as well as international diversified index funds. | |||
[4] | This category currently includes only U.S. corporate bonds and notes widely distributed among consumer discretionary, consumer staples, healthcare, information technology and financial services. | |||
[5] | This category includes fixed income investments in mutual funds which include government, corporate and mortgage securities of both the U.S. and other countries. The mortgage-backed securities and non-U.S. corporate and sovereign investments add further diversity to the fixed income portion of the portfolio. |
Employee Benefit Plans, Defined
Employee Benefit Plans, Defined Contribution Plan, Deferred Compensation and Other (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Employee | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Defined Contribution Plan [Abstract] | |||
Maximum elective employee contributions | 15.00% | ||
Company matching contributions | 100.00% | ||
Maximum annual Company contribution for each employee | $ 2,800 | ||
Number of employees participating in enhanced feature of plan | Employee | 19 | ||
Company's total contributions to defined contribution plan | $ 262,000 | $ 239,000 | $ 222,000 |
Maximum annual Company contribution as a percentage of employee's compensation | 4.00% | ||
Annual Company discretionary contribution | $ 1,200 | ||
Deferred Compensation [Abstract] | |||
Present value of future obligations | 3,608,000 | 3,576,000 | |
Total cash value of insurance policies | 3,378,000 | 3,567,000 | |
Company's expenses under deferred compensation plans | 380,000 | 658,000 | (91,000) |
Other Postretirement Benefits [Abstract] | |||
Amount payable upon retiree's death | 2,000 | ||
Present value of future obligations | 98,000 | 110,000 | |
Company's expenses under other postretirement benefit plans | $ (4,000) | $ 25,000 | $ (14,000) |
Rate Matters (Details)
Rate Matters (Details) - PPUC [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Rate Request Filed on May 29, 2013 [Member] | Water [Member] | |||
Rate Matters [Abstract] | |||
Requested dollar increase in annual revenue | $ 7,116 | ||
Authorized dollar increase in annual revenue | 4,972 | ||
Rate Request Filed on May 29, 2013 [Member] | Wastewater [Member] | |||
Rate Matters [Abstract] | |||
Requested dollar increase in annual revenue | 28 | ||
Authorized dollar increase in annual revenue | 28 | ||
DSIC [Member] | |||
Rate Matters [Abstract] | |||
Distribution system improvement charge revenue | $ 0 | $ 283 | $ 1,445 |
DSIC [Member] | Maximum [Member] | |||
Rate Matters [Abstract] | |||
Distribution system improvement charge percentage over base rate | 5.00% | ||
DSIC [Member] | Minimum [Member] | |||
Rate Matters [Abstract] | |||
Distribution system improvement charge percentage over base rate | 0.00% |
Notes Receivable and Customer40
Notes Receivable and Customers' Advances for Construction (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)MunicipalityNote | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Notes Receivable and Customers' Advances for Construction [Abstract] | |||
Number of municipalities with agreements to extend water service | Municipality | 3 | ||
Number of notes receivable repaid | Note | 2 | ||
Interest income on notes receivable | $ 110 | $ 107 | $ 101 |
Interest rate on notes outstanding | 7.50% | ||
Amounts Related to Water District Projects Included in Balance Sheet [Abstract] | |||
Notes receivable, including interest | $ 255 | 266 | |
Customers' advances for construction | 310 | 626 | |
Other customers' advances for construction | $ 7,190 | $ 10,086 |
Commitments (Details)
Commitments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)Employee | |
Commitments [Abstract] | |
Capital budget amount year one | $ | $ 20,100 |
Capital budget amount year two | $ | $ 13,100 |
Number of people employed | Employee | 107 |
Number of people employed under union contract | Employee | 37 |
Fair Value of Financial Instr42
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Rate Swap [Abstract] | ||
Term of debt on utilities rated A- used to discount prospective cash flows | 30 years | |
Reduction in the fair value of swap liability | $ 172 | |
Fair Value Estimate Not Practicable, Financial Liabilities [Abstract] | ||
Customers' advances for construction | 7,500 | $ 10,712 |
Fair Value Estimate Not Practicable, Financial Assets [Abstract] | ||
Notes receivable | 255 | 266 |
Fair Value on a Recurring Basis [Member] | ||
Interest Rate Swap [Abstract] | ||
Interest rate swap | 2,511 | 2,592 |
Fair Value on a Recurring Basis [Member] | Fair Value Measurements Using Significant Other Observable Inputs (Level 2) [Member] | ||
Interest Rate Swap [Abstract] | ||
Interest rate swap | 2,511 | 2,592 |
Carrying Amount [Member] | ||
Fair Value, Financial Liabilities [Abstract] | ||
Long-term debt (including current maturities and excluding the discount on issuance of long-term debt) | 87,542 | 84,885 |
Estimate of Fair Value [Member] | ||
Fair Value, Financial Liabilities [Abstract] | ||
Long-term debt (including current maturities and excluding the discount on issuance of long-term debt) | 102,000 | 100,000 |
Fair Value, Estimate Not Practicable, Carrying Amount [Member] | ||
Fair Value Estimate Not Practicable, Financial Liabilities [Abstract] | ||
Customers' advances for construction | 7,500 | 10,712 |
Fair Value Estimate Not Practicable, Financial Assets [Abstract] | ||
Notes receivable | $ 255 | $ 266 |
Taxes Other than Income Taxes43
Taxes Other than Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of Taxes Other than Income Taxes [Abstract] | |||
Regulatory Assessment | $ 242 | $ 218 | $ 220 |
Property | 334 | 339 | 364 |
Payroll, net of amounts capitalized | 510 | 494 | 462 |
Capital Stock | 42 | 59 | 75 |
Other | 1 | 1 | 1 |
Total taxes other than income taxes | $ 1,129 | $ 1,111 | $ 1,122 |
Selected Quarterly Financial 44
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Quarterly Financial Data [Abstract] | ||||||||||||
Operating revenues | $ 11,617 | $ 12,368 | $ 11,895 | $ 11,209 | $ 11,499 | $ 12,062 | $ 11,768 | $ 10,571 | $ 47,089 | $ 45,900 | $ 42,383 | |
Operating income | 5,492 | 6,353 | 5,682 | 5,134 | 5,427 | 6,092 | 5,800 | 4,758 | 22,661 | 22,077 | 20,761 | |
Net income | $ 3,516 | $ 3,520 | $ 2,925 | $ 2,528 | $ 3,551 | [1] | $ 3,065 | $ 2,757 | $ 2,111 | $ 12,489 | $ 11,484 | $ 9,654 |
Basic earnings per share (in dollars per share) | $ 0.27 | $ 0.28 | $ 0.22 | $ 0.20 | $ 0.28 | $ 0.23 | $ 0.22 | $ 0.16 | $ 0.97 | $ 0.89 | $ 0.75 | |
Dividends declared per share (in dollars per share) | $ 0.1555 | $ 0.1495 | $ 0.1495 | $ 0.1495 | $ 0.1495 | $ 0.1431 | $ 0.1431 | $ 0.1431 | $ 0.6040 | $ 0.5788 | $ 0.5580 | |
IRS TPR ongoing deduction | $ (1,438) | $ (1,342) | $ 0 | |||||||||
[1] | Fourth quarter net income includes a tax benefit of $1,342 for the full year 2014 due to the implementation of the IRS TPR. |
Schedule II Valuation and Qua45
Schedule II Valuation and Qualifying Accounts (Details) - Reserve for Uncollectible Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Reserve [Roll Forward] | |||
Balance at beginning of year | $ 325,000 | $ 320,000 | $ 305,000 |
Charged to cost and expenses | 292,248 | 322,499 | 290,886 |
Recoveries | 40,681 | 44,071 | 36,369 |
Deductions | 342,929 | 361,570 | 312,255 |
Balance at end of year | $ 315,000 | $ 325,000 | $ 320,000 |