Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 10, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-34028 | ||
Entity Registrant Name | AMERICAN WATER WORKS COMPANY, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 51-0063696 | ||
Entity Address, Address Line One | 1 Water Street | ||
Entity Address, City or Town | Camden | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 08102-1658 | ||
City Area Code | 856 | ||
Local Phone Number | 955-4001 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | AWK | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 24,667.4 | ||
Entity Common Stock, Shares Outstanding (in shares) | 181,724,991 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the American Water Works Company, Inc. definitive proxy statement for the 2022 Ann ual Meeting of Shareholders to be filed with the Securities and Exchange Commission within 120 days after December 31, 2021 are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0001410636 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | Philadelphia, Pennsylvania |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Property, plant and equipment | $ 27,413 | $ 25,614 |
Accumulated depreciation | (6,329) | (5,904) |
Property, plant and equipment, net | 21,084 | 19,710 |
Current assets: | ||
Cash and cash equivalents | 116 | 547 |
Restricted funds | 20 | 29 |
Accounts receivable, net of allowance for uncollectible accounts of $75 and $60, respectively | 271 | 321 |
Unbilled revenues | 248 | 206 |
Materials and supplies | 57 | 47 |
Assets held for sale | 683 | 629 |
Other | 159 | 127 |
Total current assets | 1,554 | 1,906 |
Regulatory and other long-term assets: | ||
Regulatory assets | 1,051 | 1,127 |
Seller promissory note from the sale of the Homeowner Services Group | 720 | 0 |
Operating lease right-of-use assets | 92 | 95 |
Goodwill | 1,139 | 1,504 |
Postretirement benefit assets | 193 | 173 |
Intangible assets | 0 | 55 |
Other | 242 | 196 |
Total regulatory and other long-term assets | 3,437 | 3,150 |
Total assets | 26,075 | 24,766 |
Capitalization: | ||
Common stock ($0.01 par value; 500,000,000 shares authorized; 186,880,413 and 186,466,707 shares issued, respectively) | 2 | 2 |
Paid-in-capital | 6,781 | 6,747 |
Retained earnings | 925 | 102 |
Accumulated other comprehensive loss | (45) | (49) |
Treasury stock, at cost (5,269,324 and 5,168,215 shares, respectively) | (365) | (348) |
Total common shareholders' equity | 7,298 | 6,454 |
Long-term debt | 10,341 | 9,329 |
Redeemable preferred stock at redemption value | 3 | 4 |
Total long-term debt | 10,344 | 9,333 |
Total capitalization | 17,642 | 15,787 |
Current liabilities: | ||
Short-term debt | 584 | 1,282 |
Current portion of long-term debt | 57 | 329 |
Accounts payable | 235 | 189 |
Accrued liabilities | 701 | 591 |
Accrued taxes | 176 | 50 |
Accrued interest | 88 | 88 |
Liabilities related to assets held for sale | 83 | 137 |
Other | 217 | 215 |
Total current liabilities | 2,141 | 2,881 |
Regulatory and other long-term liabilities: | ||
Advances for construction | 284 | 270 |
Deferred income taxes and investment tax credits | 2,421 | 2,113 |
Regulatory liabilities | 1,600 | 1,770 |
Operating lease liabilities | 80 | 81 |
Accrued pension expense | 285 | 388 |
Other | 180 | 83 |
Total regulatory and other long-term liabilities | 4,850 | 4,705 |
Contributions in aid of construction | 1,442 | 1,393 |
Commitments and contingencies | ||
Total capitalization and liabilities | $ 26,075 | $ 24,766 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for uncollectible accounts | $ 75 | $ 60 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 186,880,413 | 186,466,707 |
Treasury Stock, shares (in shares) | 5,269,324 | 5,168,215 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Statement [Abstract] | ||||
Operating revenues | $ 3,930 | $ 3,777 | $ 3,610 | |
Operating expenses: | ||||
Operation and maintenance | 1,777 | 1,622 | 1,544 | |
Depreciation and amortization | 636 | 604 | 582 | |
General taxes | 321 | 303 | 280 | |
Other | 0 | 0 | (10) | |
Total operating expenses, net | 2,734 | 2,529 | 2,396 | |
Operating income | 1,196 | 1,248 | 1,214 | |
Other income (expense): | ||||
Interest expense | (403) | (397) | (386) | |
Interest income | 4 | 2 | 4 | |
Non-operating benefit costs, net | 78 | 49 | 16 | |
Gain or (loss) on sale of businesses | 747 | 0 | (44) | |
Other, net | 18 | 22 | 29 | |
Total other income (expense) | 444 | (324) | (381) | |
Income before income taxes | 1,640 | 924 | 833 | |
Provision for income taxes | 377 | 215 | 212 | |
Net income attributable to common shareholders | $ 1,263 | $ 709 | $ 621 | |
Basic earnings per share: | ||||
Net income attributable to common shareholders (USD per share) | [1] | $ 6.96 | $ 3.91 | $ 3.44 |
Diluted earnings per share: | ||||
Net income attributable to common shareholders (USD per share) | [1] | $ 6.95 | $ 3.91 | $ 3.43 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 182 | 181 | 181 | |
Diluted (in shares) | 182 | 182 | 181 | |
[1] | Amounts may not calculate due to rounding. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to common shareholders | $ 1,263 | $ 709 | $ 621 |
Other comprehensive income (loss), net of tax: | |||
Change in employee benefit plan funded status, net of tax of $0, $(4) and $3 in 2021, 2020 and 2019, respectively | (1) | (12) | 8 |
Defined benefit pension plan actuarial loss, net of tax of $1, $1 and $1 in 2021, 2020 and 2019, respectively | 4 | 3 | 4 |
Foreign currency translation adjustment | 0 | 0 | (1) |
Unrealized gain (loss) on cash flow hedges, net of tax of $1, $(1) and $(5) in 2021, 2020 and 2019, respectively | 1 | (4) | (13) |
Net other comprehensive income (loss) | 4 | (13) | (2) |
Comprehensive income attributable to common shareholders | $ 1,267 | $ 696 | $ 619 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Employee benefit plan funded status, tax | $ 0 | $ (4) | $ 3 |
Actuarial loss, tax | 1 | 1 | 1 |
Unrealized gain (loss) on cash flow hedges, tax | $ 1 | $ (1) | $ (5) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 1,263 | $ 709 | $ 621 |
Adjustments to reconcile to net cash flows provided by operating activities: | |||
Depreciation and amortization | 636 | 604 | 582 |
Deferred income taxes and amortization of investment tax credits | 230 | 207 | 208 |
Provision for losses on accounts receivable | 37 | 34 | 28 |
(Gain) or loss on sale of businesses | (747) | 0 | 34 |
Pension and non-pension postretirement benefits | (41) | (14) | 17 |
Other non-cash, net | (23) | (20) | (41) |
Changes in assets and liabilities: | |||
Receivables and unbilled revenues | (74) | (97) | (25) |
Pension and non-pension postretirement benefit contributions | (40) | (39) | (31) |
Accounts payable and accrued liabilities | 66 | (2) | 66 |
Other assets and liabilities, net | 134 | 44 | (76) |
Net cash provided by operating activities | 1,441 | 1,426 | 1,383 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures | (1,764) | (1,822) | (1,654) |
Acquisitions, net of cash acquired | (135) | (135) | (235) |
Proceeds from sale of assets, net of cash on hand | 472 | 2 | 48 |
Removal costs from property, plant and equipment retirements, net | (109) | (106) | (104) |
Net cash used in investing activities | (1,536) | (2,061) | (1,945) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from long-term debt | 1,118 | 1,334 | 1,530 |
Repayments of long-term debt | (372) | (342) | (495) |
(Repayments of) proceeds from term loan | (500) | 500 | 0 |
Net short-term borrowings with maturities less than three months | (198) | (5) | (178) |
(Remittances) proceeds from issuances of employee stock plans and direct stock purchase plan, net of taxes paid of $18, $17 and $11 in 2021, 2020 and 2019, respectively | (1) | 9 | 15 |
Advances and contributions in aid of construction, net of refunds of $25, $24 and $30 in 2021, 2020 and 2019, respectively | 62 | 28 | 26 |
Debt issuance costs and make-whole premium on early debt redemption | (26) | (15) | (15) |
Dividends paid | (428) | (389) | (353) |
Anti-dilutive share repurchases | 0 | 0 | (36) |
Net cash (used in) provided by financing activities | (345) | 1,120 | 494 |
Net (decrease) increase in cash, cash equivalents and restricted funds | (440) | 485 | (68) |
Cash, cash equivalents and restricted funds at beginning of period | 576 | 91 | 159 |
Cash, cash equivalents and restricted funds at end of period | 136 | 576 | 91 |
Cash paid during the year for: | |||
Interest, net of capitalized amount | 389 | 382 | 383 |
Income taxes, net of refunds of $6, $2 and $4 in 2021, 2020 and 2019, respectively | 1 | 7 | 12 |
Non-cash investing activity: | |||
Capital expenditures acquired on account but unpaid as of year end | 292 | 221 | 235 |
Seller promissory note from the sale of the Homeowner Services Group | 720 | 0 | 0 |
Contingent cash payment from the sale of the Homeowner Services Group | $ 75 | $ 0 | $ 0 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Cash Flows [Abstract] | |||
Income taxes paid on proceeds from issuance of employee stock plans and direct stock purchase plan | $ 18 | $ 17 | $ 11 |
Advances and contributions for construction, refunds | 25 | 24 | 30 |
Income taxes, refunds | $ 6 | $ 2 | $ 4 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative effect of change in accounting principle | Common Stock | Paid-in Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative effect of change in accounting principle | Accumulated Other Comprehensive Loss | Treasury Stock | |
Beginning balance (in shares) at Dec. 31, 2018 | 185,400,000 | 4,700,000 | |||||||
Beginning balance at Dec. 31, 2018 | $ 5,864 | $ (2) | $ 2 | $ 6,657 | $ (464) | $ (2) | $ (34) | $ (297) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income attributable to common shareholders | 621 | 621 | |||||||
Common stock issuances (in shares) | [1] | 500,000 | 100,000 | ||||||
Common stock issuances | [1] | 38 | 43 | $ (5) | |||||
Repurchases of common stock (in shares) | (300,000) | ||||||||
Repurchases of common stock | (36) | $ (36) | |||||||
Net other comprehensive income | (2) | (2) | |||||||
Dividends (declared per common share) | (362) | (362) | |||||||
Ending balance (in shares) at Dec. 31, 2019 | 185,900,000 | 5,100,000 | |||||||
Ending balance at Dec. 31, 2019 | 6,121 | $ 2 | 6,700 | (207) | (36) | $ (338) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income attributable to common shareholders | 709 | 709 | |||||||
Common stock issuances (in shares) | [1] | 600,000 | 100,000 | ||||||
Common stock issuances | [1] | $ 37 | 47 | $ (10) | |||||
Repurchases of common stock (in shares) | 0 | ||||||||
Net other comprehensive income | $ (13) | (13) | |||||||
Dividends (declared per common share) | (400) | (400) | |||||||
Ending balance (in shares) at Dec. 31, 2020 | 186,500,000 | 5,200,000 | |||||||
Ending balance at Dec. 31, 2020 | 6,454 | $ 2 | 6,747 | 102 | (49) | $ (348) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income attributable to common shareholders | 1,263 | 1,263 | |||||||
Common stock issuances (in shares) | [1] | 400,000 | 100,000 | ||||||
Common stock issuances | [1] | $ 17 | 34 | $ (17) | |||||
Repurchases of common stock (in shares) | 0 | ||||||||
Net other comprehensive income | $ 4 | 4 | |||||||
Dividends (declared per common share) | (440) | (440) | |||||||
Ending balance (in shares) at Dec. 31, 2021 | 186,900,000 | 5,300,000 | |||||||
Ending balance at Dec. 31, 2021 | $ 7,298 | $ 2 | $ 6,781 | $ 925 | $ (45) | $ (365) | |||
[1] | Includes stock-based compensation, employee stock purchase plan and direct stock reinvestment and purchase plan activity. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | Dec. 09, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (USD per share) | $ 0.6025 | $ 2.41 | $ 2.20 | $ 2 |
Organization and Operation
Organization and Operation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operation | Note 1: Organization and Operation American Water Works Company, Inc. (the “Company” or “American Water”) is a holding company for regulated and market-based subsidiaries that provide water and wastewater services throughout the United States. References to “parent company” mean American Water Works Company, Inc., without its subsidiaries. The Company’s primary business involves the ownership of regulated utilities that provide water and wastewater services in 14 states in the United States, collectively referred to as the “Regulated Businesses.” The Company also operates other businesses that provide water and wastewater services within non-reportable operating segments, collectively referred to as the “Market-Based Businesses.” The Company’s primary Market-Based Businesses include the Military Services Group (“MSG”), which enters into long-term contracts with the U.S. government to provide water and wastewater services on various military installations; and the former Homeowner Services Group (“HOS”), which provided various warranty protection programs and other home services to residential customers. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2: Significant Accounting Policies Regulation The Company’s regulated utilities are subject to regulation by multiple state utility commissions or other entities engaged in utility regulation, collectively referred to as Public Utility Commissions (“PUCs”). As such, the Company follows authoritative accounting principles required for rate regulated utilities, which requires the effects of rate regulation to be reflected in the Company’s Consolidated Financial Statements. PUCs generally authorize revenue at levels intended to recover the estimated costs of providing service, plus a return on net investments, or rate base. Regulators may also approve accounting treatments, long-term financing programs and cost of capital, operation and maintenance (“O&M”) expenses, capital expenditures, taxes, affiliated transactions and relationships, reorganizations, mergers, acquisitions and dispositions, along with imposing certain penalties or granting certain incentives. Due to timing and other differences in the collection of a regulated utility’s revenues, these authoritative accounting principles allow a cost that would otherwise be charged as an expense by a non-regulated entity, to be deferred as a regulatory asset if it is probable that such cost is recoverable through future rates. Conversely, these principles also require the creation of a regulatory liability for amounts collected in rates to recover costs expected to be incurred in the future, or amounts collected in excess of costs incurred and are refundable to customers. See Note 4—Regulatory Matters for additional information. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires that management make estimates, assumptions and judgments that could affect the Company’s financial condition, results of operations and cash flows. Actual results could differ from these estimates, assumptions and judgments. The Company considers its critical accounting estimates to include (i) the application of regulatory accounting principles and the related determination and estimation of regulatory assets and liabilities, (ii) revenue recognition and the estimates used in the calculation of unbilled revenue, (iii) accounting for income taxes, (iv) benefit plan assumptions and (v) the estimates and judgments used in determining loss contingencies. The Company’s critical accounting estimates that are particularly sensitive to change in the near term are amounts reported for regulatory assets and liabilities, income taxes, benefit plan assumptions and contingency-related obligations. Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of American Water and all of its subsidiaries in which a controlling interest is maintained after the elimination of intercompany balances and transactions. Property, Plant and Equipment Property, plant and equipment consists primarily of utility plant utilized by the Company’s regulated utilities. Additions to utility plant and replacement of retirement units of utility plant are capitalized and include costs such as materials, direct labor, payroll taxes and benefits, indirect items such as engineering and supervision, transportation and an allowance for funds used during construction (“AFUDC”). Costs for repair, maintenance and minor replacements are charged to O&M expense as incurred. The cost of utility plant is depreciated using the straight-line average remaining life, group method. The Company’s regulated utilities record depreciation in conformity with amounts approved by PUCs, after regulatory review of the information the Company submits to support its estimates of the assets’ remaining useful lives. Nonutility property consists primarily of buildings and equipment utilized by the Company’s Market-Based Businesses and for internal operations. This property is stated at cost, net of accumulated depreciation, which is calculated using the straight-line method over the useful lives of the assets. When units of property, plant and equipment are replaced, retired or abandoned, the carrying value is credited against the asset and charged to accumulated 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 recorded. In some cases, the Company recovers retirement costs through rates during the life of the associated asset and before the costs are incurred. These amounts result in a regulatory liability being reported based on the amounts previously recovered through customer rates, until the costs to retire those assets are incurred. The costs incurred to acquire and internally develop computer software for internal use are capitalized as a unit of property. The carrying value of these costs amounted to $374 million and $360 million as of December 31, 2021 and 2020, respectively. Cash and Cash Equivalents, and Restricted Funds Substantially all cash is invested in interest-bearing accounts. All highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents. Restricted funds consist primarily of proceeds from financings for the construction and capital improvement of facilities, and deposits for future services under O&M projects. Proceeds are held in escrow or interest-bearing accounts until the designated expenditures are incurred. Restricted funds are classified on the Consolidated Balance Sheets as either current or long-term based upon the intended use of the funds. Accounts Receivable and Unbilled Revenues Accounts receivable include regulated utility customer accounts receivable, which represent amounts billed to water and wastewater customers generally on a monthly basis. Credit is extended based on the guidelines of the applicable PUCs and collateral is generally not required. Also included are market-based trade accounts receivable and nonutility customer receivables of the regulated subsidiaries. Unbilled revenues are accrued when service has been provided but has not been billed to customers and when costs exceed billings on market-based construction contracts. Allowance for Uncollectible Accounts Allowances for uncollectible accounts are maintained for estimated probable losses resulting from the Company’s inability to collect receivables from customers. Accounts that are outstanding longer than the payment terms are considered past due. A number of factors are considered in determining the allowance for uncollectible accounts, including the length of time receivables are past due, previous loss history, current economic and societal conditions and reasonable and supportable forecasts that affect the collectability of receivables from customers. The Company generally writes off accounts when they become uncollectible or are over a certain number of days outstanding. An increase in the allowance for uncollectible accounts for the periods ending December 31, 2021 and 2020 reflects the impacts from the COVID-19 pandemic, including an increase in uncollectible accounts expense and a reduction in amounts written off due to shutoff moratoria in place across the Company’s subsidiaries. See Note 8—Allowance for Uncollectible Accounts for additional information. Materials and Supplies Materials and supplies are stated at the lower of cost or net realizable value. Cost is determined using the average cost method. Seller Promissory Note The Company’s seller promissory note is accounted for under ASC 310, Receivables, and is classified as held for investment and accounted for at amortized cost at the present value of consideration received for the sale of its HOS business. Interest income from the seller promissory note is accrued based on the principal amount outstanding and earned over the contractual life of the loan. Leases The Company has operating and finance leases involving real property, including facilities, utility assets, vehicles, and equipment. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, accrued liabilities and operating lease liabilities on the Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, accrued liabilities and other long-term liabilities on the Consolidated Balance Sheets. The Company has made an accounting policy election not to include operating leases with a lease term of twelve months or less. ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are generally recognized at the commencement date based on the present value of discounted lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of discounted lease payments. The implicit rate is used when readily determinable. ROU assets also include any upfront lease payments and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-area maintenance costs), which are generally accounted for separately; however, the Company accounts for the lease and non-lease components as a single lease component for certain leases. Certain lease agreements include variable rental payments adjusted periodically for inflation. Additionally, the Company applies a portfolio approach to effectively account for the ROU assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Goodwill Goodwill represents the excess of the purchase price paid over the estimated fair value of the assets acquired and liabilities assumed in the acquisition of a business. Goodwill is not amortized and must be allocated at the reporting unit level, which is defined as an operating segment or one level below, and tested for impairment at least annually, or more frequently if an event occurs or circumstances change that would more likely than not, reduce the fair value of a reporting unit below its carrying value. The Company’s goodwill is primarily associated with the acquisition of American Water by an affiliate of the Company’s previous owner in 2003 and has been allocated to reporting units based on the fair values at the date of the acquisitions. For purposes of testing goodwill for impairment, the reporting units in the Regulated Businesses segment are aggregated into a single reporting unit. The goodwill of the Market-Based Businesses is comprised of the MSG reporting unit. The Company’s annual impairment testing is performed as of November 30 of each year, in conjunction with the completion of the Company’s annual business plan. The Company assesses qualitative factors to determine whether quantitative testing is necessary. If it is determined, based upon qualitative factors, that the estimated fair value of a reporting unit is more likely than not, greater than its carrying value, no further testing is required. If the Company bypasses the qualitative assessment or performs the qualitative assessment and determines that the estimated fair value of a reporting unit is more likely than not, less than its carrying value, a quantitative, fair value-based assessment is performed. This quantitative testing compares the estimated fair value of the reporting unit to its respective net carrying value, including goodwill, on the measurement date. An impairment loss will be recognized in the amount equal to the excess of the reporting unit’s carrying value compared to its estimated fair value, limited to the total amount of goodwill allocated to that reporting unit. Application of goodwill impairment testing requires management judgment, including the identification of reporting units and determining the fair value of reporting units. Management estimates fair value using a discounted cash flow analysis. Significant assumptions used in these fair value estimations include, but are not limited to, forecasts of future operating results, discount and growth rates. The Company believes the assumptions and other considerations used to value goodwill to be appropriate, however, if actual experience differs from the assumptions and considerations used in its analysis, the resulting change could have a material adverse impact on the Consolidated Financial Statements. See Note 9—Goodwill and Other Intangible Assets for additional information. Intangible Assets Intangible assets consisted primarily of finite-lived customer relationships associated with the acquisition of Pivotal Home Solutions in June 2018. Finite-lived intangible assets were initially measured at their estimated fair values and were amortized over their estimated useful lives based on the pattern in which the economic benefits of the intangible assets were consumed or otherwise used. See Note 9—Goodwill and Other Intangible Assets for additional information. All of the Company’s finite-lived intangible assets were sold as part of the HOS sale transaction. Impairment of Long-Lived Assets Long-lived assets include property, plant and equipment, goodwill, intangible assets and long-term investments. The Company evaluates long-lived assets for impairment when circumstances indicate the carrying value of those assets may not be recoverable. When such indicators arise, the Company estimates the fair value of the long-lived asset from future cash flows expected to result from its use and, if applicable, the eventual disposition of the asset, comparing the estimated fair value to the carrying value of the asset. An impairment loss will be recognized in the amount equal to the excess of the long-lived asset’s carrying value compared to its estimated fair value. The long-lived assets of the Company’s regulated utilities are grouped on a separate entity basis for impairment testing, as they are integrated state-wide operations that do not have the option to curtail service and generally have uniform tariffs. A regulatory asset is charged to earnings if and when future recovery in rates of that asset is no longer probable. The Company believes the assumptions and other considerations used to value long-lived assets to be appropriate, however, if actual experience differs from the assumptions and considerations used in its estimates, the resulting change could have a material adverse impact on the Consolidated Financial Statements. Advances for Construction and Contributions in Aid of Construction Regulated utility subsidiaries may receive advances for construction and contributions in aid of construction from customers, home builders and real estate developers to fund construction necessary to extend service to new areas. Advances are refundable for limited periods of time as new customers begin to receive service or other contractual obligations are fulfilled. Included in other current liabilities as of December 31, 2021 and 2020 on the Consolidated Balance Sheets are estimated refunds of $23 million and $23 million, respectively. Those amounts represent expected refunds during the next 12-month period. Advances that are no longer refundable are reclassified to contributions. Contributions are permanent collections of plant assets or cash for a particular construction project. For ratemaking purposes, the amount of such contributions generally serves as a rate base reduction since the contributions represent non-investor supplied funds. Generally, the Company depreciates utility plant funded by contributions and amortizes its contributions balance as a reduction to depreciation expense, producing a result which is functionally equivalent to reducing the original cost of the utility plant for the contributions. In accordance with applicable regulatory guidelines, some of the Company’s utility subsidiaries do not amortize contributions, and any contribution received remains on the balance sheet indefinitely. Amortization of contributions in aid of construction was $36 million, $32 million and $29 million for the years ended December 31, 2021, 2020 and 2019, respectively. Revenue Recognition Under Accounting Standards Codification Topic 606, Revenue From Contracts With Customers, and all related amendments (collectively, “ASC 606”), a performance obligation is a promise within a contract to transfer a distinct good or service, or a series of distinct goods and services, to a customer. Revenue is recognized when performance obligations are satisfied and the customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for goods or services. Under ASC 606, a contract’s transaction price is allocated to each distinct performance obligation. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identifies the contracts with a customer; (ii) identifies the performance obligations within the contract, including whether any performance obligations are distinct and capable of being distinct in the context of the contract; (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligations in the contract; and (v) recognizes revenue when, or as, the Company satisfies each performance obligation. The Company’s revenues from contracts with customers are discussed below. Customer payments for contracts are generally due within 30 days of billing and none of the contracts with customers have payment terms that exceed one year; therefore, the Company elected to apply the significant financing component practical expedient and no amount of consideration has been allocated as a financing component. Regulated Businesses Revenue Revenue from the Company’s Regulated Businesses is generated primarily from water and wastewater services delivered to customers. These contracts contain a single performance obligation, the delivery of water and/or wastewater services, as the promise to transfer the individual good or service is not separately identifiable from other promises within the contracts and, therefore, is not distinct. Revenues are recognized over time, as services are provided. There are generally no significant financing components or variable consideration. Revenues include amounts billed to customers on a cycle basis and unbilled amounts calculated based on estimated usage from the date of the meter reading associated with the latest customer bill, to the end of the accounting period. The amounts that the Company has a right to invoice are determined by each customer’s actual usage, an indicator that the invoice amount corresponds directly to the value transferred to the customer. The Company also recognizes revenue when it is probable that future recovery of previously incurred costs or future refunds that are to be credited to customers will occur through the ratemaking process. Market-Based Businesses Revenue The Company has long-term, fixed fee contracts to operate and maintain water and wastewater systems for the U.S. government on various military installations and facilities owned by municipal customers. Billing and revenue recognition for the fixed fee revenues occurs ratably over the term of the contract, as customers simultaneously receive and consume the benefits provided by the Company. Additionally, these contracts allow the Company to make capital improvements to underlying infrastructure, which are initiated through separate modifications or amendments to the original contract, whereby stand-alone, fixed pricing is separately stated for each improvement. The Company has determined that these capital improvements are separate performance obligations, with revenue recognized over time based on performance completed at the end of each reporting period. Losses on contracts are recognized during the period in which the losses first become probable and estimable. Revenues recognized during the period in excess of billings on construction contracts are recorded as unbilled revenues, with billings in excess of revenues recorded as other current liabilities until the recognition criteria are met. Changes in contract performance and related estimated contract profitability may result in revisions to costs and revenues and are recognized in the period in which revisions are determined. See Note 5—Revenue Recognition for additional information. Through various warranty protection programs and other home services, the Company previously provided fixed fee services to residential customers for interior and exterior water and sewer lines, interior electric and gas lines, heating and cooling systems, water heaters and other home appliances, as well as power surge protection and other related services through its former HOS business. Most of the contracts had a one-year term and each service was a separate performance obligation, satisfied over time, as the customers simultaneously received and consumed the benefits provided from the service. Customers were obligated to pay for the protection programs ratably over 12 months or via a one-time, annual fee, with revenues recognized ratably over time for those services. Advances from customers were deferred until the performance obligation was satisfied. Income Taxes The Company and its subsidiaries participate in a consolidated federal income tax return for U.S. tax purposes. Members of the consolidated group are charged with the amount of federal income tax expense determined as if they filed separate returns. Certain income and expense items are accounted for in different time periods for financial reporting than for income tax reporting purposes. The Company provides deferred income taxes on the difference between the tax basis of assets and liabilities and the amounts at which they are carried in the financial statements. These deferred income taxes are based on the enacted tax rates expected to be in effect when these temporary differences are projected to reverse. In addition, the regulated utility subsidiaries recognize regulatory assets and liabilities for the effect on revenues expected to be realized as the tax effects of temporary differences, previously flowed through to customers, reverse. Investment tax credits have been deferred by the regulated utility subsidiaries and are being amortized to income over the average estimated service lives of the related assets. The Company recognizes accrued interest and penalties related to tax positions as a component of income tax expense and accounts for sales tax collected from customers and remitted to taxing authorities on a net basis. See Note 15—Income Taxes for additional information. Allowance for Funds Used During Construction AFUDC is a non-cash credit to income with a corresponding charge to utility plant that represents the cost of borrowed funds or a return on equity funds devoted to plant under construction. The regulated utility subsidiaries record AFUDC to the extent permitted by the PUCs. The portion of AFUDC attributable to borrowed funds is shown as a reduction of interest, net on the Consolidated Statements of Operations. Any portion of AFUDC attributable to equity funds would be included in other, net on the Consolidated Statements of Operations. Presented in the table below is AFUDC for the years ended December 31: 2021 2020 2019 Allowance for other funds used during construction $ 27 $ 30 $ 28 Allowance for borrowed funds used during construction 10 13 13 Environmental Costs The Company’s water and wastewater operations and the operations of its Market-Based Businesses are subject to U.S. federal, state, local and foreign requirements relating to environmental protection, and as such, the Company periodically becomes subject to environmental claims in the normal course of business. Environmental expenditures that relate to current operations or provide a future benefit are expensed or capitalized as appropriate. Remediation costs that relate to an existing condition caused by past operations are accrued, on an undiscounted basis, when it is probable that these costs will be incurred and can be reasonably estimated. A conservation agreement entered into by a subsidiary of the Company with the National Oceanic and Atmospheric Administration in 2010 and amended in 2017 required the subsidiary to, among other provisions, implement certain measures to protect the steelhead trout and its habitat in the Carmel River watershed in the State of California. The subsidiary agreed to pay $1 million annually commencing in 2010 with the final payment made in 2021. No remediation costs were accrued as of December 31, 2021 and $1 million was accrued as of December 31, 2020. Derivative Financial Instruments The Company uses derivative financial instruments primarily for purposes of hedging exposures to fluctuations in interest rates. These derivative contracts are entered into for periods consistent with the related underlying exposures and do not constitute positions independent of those exposures. The Company does not enter into derivative contracts for speculative purposes and does not use leveraged instruments. All derivatives are recognized on the balance sheet at fair value. On the date the derivative contract is entered into, the Company may designate the derivative as a hedge of the fair value of a recognized asset or liability (fair-value hedge) or a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (cash-flow hedge). Changes in the fair value of a fair-value hedge, along with the gain or loss on the underlying hedged item, are recorded in current-period earnings. The gains and losses on the effective portion of cash-flow hedges are recorded in other comprehensive income, until earnings are affected by the variability of cash flows. Any ineffective portion of designated cash-flow hedges is recognized in current-period earnings. Cash flows from derivative contracts are included in net cash provided by operating activities on the Consolidated Statements of Cash Flows. See Note 12—Long-Term Debt for additional information. New Accounting Standards Presented in the table below are new accounting standards that were adopted by the Company in 2021: Standard Description Date of Adoption Application Effect on the Consolidated Financial Statements Facilitation of the Effects of Reference Rate Reform on Financial Reporting Provided optional guidance for a limited time to ease the potential accounting burden associated with the transition from London Interbank Offered Rate (“LIBOR”). The guidance contains optional expedients and exceptions for contract modifications, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued. The expedients elected must be applied for all eligible contracts or transactions, with the exception of hedging relationships, which can be applied on an individual basis. March 12, 2020 through December 31, 2022 Prospective for contract modifications and hedging relationships; applied as of January 1, 2020. The standard did not have a material impact on the Consolidated Financial Statements. Simplifying the Accounting for Income Taxes The guidance removes exceptions related to the incremental approach for intraperiod tax allocation, the requirement to recognize a deferred tax liability for changes in ownership of a foreign subsidiary or equity method investment, and the general methodology for calculating income taxes in an interim period when the year-to-date loss exceeds the anticipated loss. The guidance adds requirements to reflect changes to tax laws or rates in the annual effective tax rate computation in the interim period in which the changes were enacted, to recognize franchise or other similar taxes that are partially based on income as an income-based tax and any incremental amounts as non-income-based tax, and to evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. January 1, 2021 Modified retrospective for amendments related to changes in ownership of a foreign subsidiary or equity method investment; The standard did not have a material impact on the Consolidated Financial Statements. Presented in the table below are recently issued accounting standards that have not yet been adopted by the Company as of December 31, 2021: Standard Description Date of Adoption Application Estimated Effect on the Consolidated Financial Statements Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Simplification of financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. This will result in fewer embedded conversion features being separately recognized from the host contract. Earnings per share (“EPS”) calculations have been simplified for certain instruments. January 1, 2022 Either modified retrospective or fully retrospective The Company anticipates the adoption of the standard will not have a material impact on its Consolidated Financial Statements. Disclosures by Business Entities about Government Assistance The amendments in this update requires additional disclosures regarding government grants and contributions. These disclosures require information on the following three items about these government transactions to be provided: information on the nature of transactions and related accounting policy used to account for transactions, the line items on the balance sheet and income statement affected by these transactions including amounts applicable to each line, and significant terms and conditions of the transactions, including commitments and contingencies January 1, 2022 Either prospective or retrospective The Company is evaluating any impact on its Consolidated Financial Statements. Accounting for Contract Asset and Contract Liabilities from Contracts with Customers The guidance requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606 as if it had originated the contracts. January 1, 2023; early adoption permitted Prospective The Company is evaluating any impact on its Consolidated Financial Statements, as well as the timing of adoption. Reclassifications Certain reclassifications have been made to prior periods in the Consolidated Financial Statements and Notes to conform to the current presentation. The Company reclassified $44 million relating to loss on the sale of Keystone Clearwater Solutions, LLC in 2019 from operating expenses to other income (expenses) included in Gain or (loss) on sale of businesses on the Consolidated Statements of Operations. |
Impact of the COVID-19 Pandemic
Impact of the COVID-19 Pandemic | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Impact of the COVID-19 Pandemic | Note 3: Impact of the COVID-19 Pandemic American Water continues to monitor the COVID-19 pandemic and has experienced financial impacts since the start of the pandemic resulting from lower revenues from the suspension of late fees and foregone reconnect fees in certain states, certain incremental O&M expenses, an increase in uncollectible accounts expense and additional debt costs. These impacts are collectively referred to as “financial impacts.” As of February 16, 2022, American Water has commission orders authorizing deferred accounting or cost recovery for COVID-19 financial impacts in 11 of 13 jurisdictions. Other regulatory actions to date are presented in the table below: Commission Actions Description States Orders issued with deferred accounting Allows the Company to establish regulatory assets to record certain financial impacts related to the COVID-19 pandemic. HI, IN, MD, NJ, PA, VA, WV Orders issued with cost recovery California’s Catastrophic Event Memorandum Account allows the Company’s California subsidiary to track certain financial impacts related to the COVID-19 pandemic for future recovery requests. Iowa issued a base rate case order on June 28, 2021, authorizing recovery in rates of the COVID-19 financial impacts deferred within its annual non-recurring expense rider. Illinois has authorized cost recovery of the COVID-19 financial impacts through a special purpose rider over a 24-month period, which was implemented effective October 1, 2020. Additionally, Illinois approved a bad debt rider tariff on December 16, 2020, allowing collection of actual bad debt expense over last authorized beginning April 2021 through February 2023. Illinois approved a stipulation in March 2021 to allow the rider to be extended through the end of 2023. Missouri issued a base rate case order on April 7, 2021, authorizing recovery in rates of the COVID-19 financial impacts deferred through March 31, 2021 over a three CA, IA, IL, MO The Company’s Pennsylvania subsidiary filed for a request with the Pennsylvania Public Utility Commission (the “PaPUC”) to defer as a regulatory asset all identified COVID-19 financial impacts. On September 15, 2021, the PaPUC issued an order approving the Company’s request to defer, with carrying costs, incremental uncollectible expense and other incremental costs net of savings attributed to the COVID-19 pandemic. The PaPUC order denied the request to include lost revenues attributed to the waiver of late fees and reconnect fees and expenses associated with additional interest costs. Additionally, the PaPUC order approved the request to allow for the continuation of the deferral of financial impacts, rejecting proposals from the intervening parties to define an end date to the deferral in 2021. As a result of the order discussed above, the Company recorded a net $7 million reduction to its regulatory assets and corresponding impacts to revenue, interest expense and uncollectible expense during the third quarter of 2021. The Company continues to evaluate options within its next base rate case to address these denied items and the resulting financial impact. On July 28, 2021, the Company’s Tennessee subsidiary filed a stipulation and settlement agreement with the Consumer Advocate Unit in the Financial Division of the Office of the Tennessee Attorney General, which reflected agreement on the deferral of COVID-19-related financial impacts through April 30, 2021. On August 9, 2021, the Tennessee Public Utility Commission denied the stipulation and settlement agreement and moved to address the Company’s Tennessee subsidiary’s petition to defer the COVID-19 financial impacts in a future hearing. On August 26, 2021, the Company’s Tennessee subsidiary filed a motion to withdraw its pending petition, preserving its right to seek recovery of the COVID-19 financial impacts in a future proceeding. In December 2020, the Kentucky Public Service Commission issued an order denying a request to defer to a regulatory asset the financial impacts related to the COVID-19 pandemic. Consistent with these regulatory orders, the Company has recorded $36 million in regulatory assets and $6 million of regulatory liabilities for the financial impacts related to the COVID-19 pandemic on the Consolidated Balance Sheets as of December 31, 2021. As of February 16, 2022, one state, New Jersey, continues moratoria until March 15, 2022, on the suspension of service disconnections due to non-payment. The moratoria on disconnects have expired in 12 states. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Note 4: Regulatory Matters General Rate Cases Presented in the table below are annualized incremental revenues, excluding reductions for the amortization of the excess accumulated deferred income taxes (“EADIT”) that are generally offset in income tax expense, assuming a constant water sales volume, resulting from general rate cases authorizations that became effective during 2019 through 2021: (In millions) 2021 2020 2019 General rate cases by state (a) : Iowa (effective October 11, 2021) $ 1 $ — $ — Missouri (effective May 28, 2021) 22 — — Pennsylvania (effective January 28, 2021) 70 — — California (effective January 1, 2021, January 1, 2020 and May 11, 2019) 22 5 4 New Jersey (effective November 1, 2020) — 54 — Indiana (effective May 1, 2020 and July 1, 2019) — 13 4 Kentucky (effective June 28, 2019) — — 13 West Virginia (effective February 25, 2019) — — 19 Maryland (effective February 5, 2019) — — 1 Total general rate case authorizations $ 115 $ 72 $ 41 (a) Excludes authorized increases of $7 million and $4 million in 2021 and 2019, respectively, for the Company’s New York subsidiary, which was sold on January 1, 2022. See Note 6—Acquisitions and Divestitures for additional information. On November 18, 2021, the California Public Utilities Commission (the “CPUC”) unanimously approved a final decision in the test year 2021 general rate case filed by the Company’s California subsidiary, which is retroactive to January 1, 2021. The Company’s California subsidiary received authorization for additional annualized water and wastewater revenues of $22 million, excluding agreed to reductions for EADIT as a result of the Tax Cuts and Jobs Act of 2017 (the “TCJA”). The EADIT reduction in revenues is $4 million and is offset by a like reduction in income tax expense. On January 18, 2022, the Company’s California subsidiary filed for approval of $13 million in 2022 escalation increases, excluding $4 million of reductions related to the TCJA. This filing, which is retroactive to January 1, 2022, is subject to CPUC approval with a 45-day review period. On June 28, 2021, an order was issued authorizing an increase of $1 million in the general rate case filed by the Company’s Iowa subsidiary in 2020. The Company’s Iowa subsidiary filed tariffs consistent with the order on September 23, 2021. Effective October 11, 2021, the Iowa Utilities Board approved the tariffs and implemented the new rates. On April 7, 2021, the Company’s Missouri subsidiary was authorized additional annualized revenues of $22 million, effective May 28, 2021, excluding agreed to reductions for EADIT as a result of the TCJA. The EADIT reduction in revenues is $25 million and is offset by a like reduction in income tax expense. The protected EADIT balance of $72 million is being returned to customers using the average rate assumption method (“ARAM”), and the unprotected EADIT balance of $74 million is being returned to customers over 10 years. The $25 million EADIT reduction includes both the protected and unprotected catch-up period EADIT of $13 million. The catch-up period of January 1, 2018 through May 31, 2021 covers the period from when the lower federal corporate income tax rate went into effect until new base rates went into effect and will be amortized over 2.5 years. On March 2, 2021, an administrative law judge (“ALJ”) in the Office of Administrative Law of New Jersey filed an initial decision with the New Jersey Board of Public Utilities (the “NJBPU”) that recommended denial of a petition filed by the Company’s New Jersey subsidiary, which sought approval of acquisition adjustments in rate base of $29 million associated with the acquisitions of Shorelands Water Company, Inc. in 2017 and the Borough of Haddonfield’s water and wastewater systems in 2015. On July 29, 2021, the NJBPU issued an order adopting the ALJ’s initial decision without modification. The Company’s New Jersey subsidiary filed a Notice of Appeal with the New Jersey Appellate Division on September 10, 2021. A scheduling order was issued on October 18, 2021 establishing a briefing schedule through March 2022. There is no financial impact to the Company as a result of the NJBPU’s order, since the acquisition adjustments are currently recorded as goodwill on the Consolidated Balance Sheets. On February 25, 2021, the Company’s Pennsylvania subsidiary was authorized additional annualized revenues of $90 million, effective January 28, 2021, excluding agreed to reductions for EADIT as a result of the TCJA, over two steps. The EADIT reduction in revenues is $19 million. The overall increase, net of TCJA reductions, is $71 million in revenues combined over two steps. The first step was effective January 28, 2021 in the amount of $70 million ($51 million including TCJA reductions) and the second step will be effective January 1, 2022 in the amount of $20 million. The protected EADIT balance of $200 million is being returned to customers using the ARAM, and the unprotected EADIT balance of $116 million is being returned to customers over 20 years. The $19 million annually includes both the protected and unprotected EADIT amortizations and a portion of catch-up period EADIT. A bill credit of $11 million annually for two years returns to customers the remainder of the EADIT catch-up period amortization. The catch-up period of January 1, 2018 through December 31, 2020 covers the period from when the lower federal corporate income tax rate went into effect until new base rates went into effect and will be amortized over two years. Pending General Rate Case Filings On February 10, 2022, the Company’s Illinois subsidiary filed a general rate case requesting $71 million in additional annualized revenues excluding proposed reductions for EADIT as a result of TCJA and infrastructure surcharges. On January 14, 2022, the Company’s New Jersey subsidiary filed a general rate case requesting $110 million in additional annualized revenues excluding proposed reductions for EADIT as a result of TCJA and infrastructure surcharges. On December 1, 2021, the Company’s Kentucky subsidiary filed a wastewater rate case requesting additional revenues of $1 million, excluding proposed reductions for EADIT as a result of TCJA. The Company requested a four-step rate increase for their wastewater operations with effective dates of June 1, 2022, June 1, 2023, June 1, 2024 and June 1, 2025 for annual amounts of less than $1 million each year. The Company filed their wastewater case under the alternative rate filing process for smaller utilities which calculates an operating ratio of 88% rather than a return on equity. On November 15, 2021, the Company’s Virginia subsidiary filed a general rate case requesting $15 million in additional annualized revenues excluding proposed reductions for EADIT as a result of TCJA. On August 18, 2021, the Company’s Hawaii subsidiary filed a general rate case requesting $2 million in additional annualized revenues excluding proposed reductions for EADIT as a result of TCJA. On April 30, 2021, the Company’s West Virginia subsidiary filed a general rate case requesting $32 million in annualized incremental revenues excluding proposed reductions for EADIT as a result of TCJA and infrastructure surcharges. The proposed EADIT reduction in revenues is $1 million and the exclusion for infrastructure surcharges is $10 million. Intervenor testimony was received on September 20, 2021. The Company’s rebuttal testimony was filed on October 5, 2021. Hearings were conducted on November 3 and 4, 2021. A final order is expected no later than February 24, 2022. The Company’s California subsidiary submitted its application on May 3, 2021 to set its cost of capital for 2022 through 2024. According to the CPUC’s process, a decision is expected to be issued, setting the authorized cost of capital in the third quarter of 2022. Infrastructure Surcharges A number of states have authorized the use of regulatory mechanisms that permit rates to be adjusted outside of a general rate case for certain costs and investments, such as infrastructure surcharge mechanisms that permit recovery of capital investments to replace aging infrastructure. Presented in the table below are annualized incremental revenues, assuming a constant water sales volume, resulting from infrastructure surcharge authorizations that became effective during 2019 through 2021: (In millions) 2021 2020 2019 Infrastructure surcharges by state (a) : New Jersey (b) $ 26 $ 20 $ 15 Missouri (c) 7 12 14 Kentucky (effective July 1, 2021 and July 1, 2020) 1 1 — Indiana (effective March 17, 2021) 8 — — Pennsylvania (d) 8 27 11 Illinois (effective January 1, 2021, January 1, 2020 and January 1, 2019) 7 7 8 West Virginia (effective January 1, 2021, January 1, 2020 and January 1, 2019) 5 3 2 Tennessee (effective January 1, 2021, January 1, 2020 and September 1, 2019) 3 2 1 Total infrastructure surcharge authorizations $ 65 $ 72 $ 51 (a) Excludes authorized increases of $2 million in 2019 for the Company’s New York subsidiary, which was sold on January 1, 2022. See Note 6—Acquisitions and Divestitures for additional information. (b) In 2021, $12 million was effective on December 30 and $14 million was effective June 28. In 2020, $10 million was effective June 29 and $10 million was effective January 1. In 2019, the effective date was July 1. (c) In 2021, the effective date was October 7. In 2020, $2 million was effective December 14 and $10 million was effective June 27. In 2019, $5 million was effective December 21 and $9 million was effective June 24. (d) In 2021, the effective date was January 1. In 2020, $8 million was effective October 1, $4 million was effective July 1, $5 million was effective April 1 and $10 million was effective January 1. In 2019, $6 million was effective October 1, $3 million was effective July 1 and $2 million was effective April 1. Presented in the table below are annualized incremental revenues, assuming a constant water sales volume, resulting from infrastructure surcharge authorizations that became effective after January 1, 2022: (In millions) Amount Infrastructure surcharge filings by state: Illinois (effective January 1, 2022) $ 6 Missouri (effective February 1, 2022) 12 Total infrastructure surcharge filings $ 18 Pending Infrastructure Surcharge Filings On January 19, 2022, the Company’s Indiana subsidiary filed for infrastructure surcharges requesting $8 million in additional annualized revenues. On June 30, 2021, the Company’s West Virginia subsidiary filed for an infrastructure surcharge requesting $3 million in additional annualized revenues. Regulatory Assets Regulatory assets represent costs that are probable of recovery from customers in future rates. Approximately 50% of the Company’s total regulatory asset balance at December 31, 2021 earns a return. Presented in the table below is the composition of regulatory assets as of December 31: 2021 2020 Deferred pension expense $ 323 $ 374 Removal costs recoverable through rates 313 314 Regulatory balancing accounts 52 57 Other 439 446 Less: Regulatory assets included in assets held for sale (a) (76) (64) Total regulatory assets $ 1,051 $ 1,127 (a) These regulatory assets are related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and are included in assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information. The Company’s deferred pension expense includes a portion of the underfunded status that is probable of recovery through rates in future periods of $317 million and $366 million as of December 31, 2021 and 2020, respectively. The remaining portion is the pension expense in excess of the amount contributed to the pension plans which is deferred by certain subsidiaries and will be recovered in future service rates as contributions are made to the pension plan. Removal costs recoverable through rates represent costs incurred for removal of property, plant and equipment or other retirement costs. Regulatory balancing accounts accumulate differences between revenues recognized and authorized revenue requirements until they are collected from customers or are refunded. Regulatory balancing accounts include low income programs and purchased power and water accounts. Other regulatory assets include the financial impacts relating to the COVID-19 pandemic, purchase premium recoverable through rates, tank painting costs, certain construction costs for treatment facilities, property tax stabilization, employee-related costs, business services project expenses, coastal water project costs, rate case expenditures and environmental remediation costs among others. These costs are deferred because the amounts are being recovered in rates or are probable of recovery through rates in future periods. The Company has current regulatory assets of $16 million and $13 million included in other current assets on the Consolidated Balance Sheet as of December 31, 2021 and 2020, respectively, which is primarily made up of deferred vacation pay. Regulatory Liabilities Regulatory liabilities generally represent amounts that are probable of being credited or refunded to customers through the rate making process. Also, if costs expected to be incurred in the future are currently being recovered through rates, the Company records those expected future costs as regulatory liabilities. Presented in the table below is the composition of regulatory liabilities as of December 31: 2021 2020 Income taxes recovered through rates $ 1,093 $ 1,230 Removal costs recovered through rates 291 301 Postretirement benefit liability 153 170 Other 110 111 Less: Regulatory liabilities included in liabilities related to assets held for sale (a) (47) (42) Total regulatory liabilities $ 1,600 $ 1,770 (a) These regulatory liabilities are related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and are included in liabilities related to assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information. Income taxes recovered through rates relate to deferred taxes that will likely be refunded to the Company’s customers. On December 22, 2017, the TCJA was signed into law, which, among other things, enacted significant and complex changes to the Internal Revenue Code of 1986, as amended (the “Code”), including a reduction in the federal corporate income tax rate from 35% to 21% as of January 1, 2018. The enactment of the TCJA required a re-measurement of the Company’s deferred income taxes. The portion of this re-measurement related to the Regulated Businesses was substantially offset by a regulatory liability as EADIT will be used to benefit its regulated customers in future rates. Twelve of the Company’s regulated subsidiaries are amortizing EADIT and crediting customers. The Company expects the timing of the amortization of EADIT credits for the one remaining regulated subsidiary to be addressed in a pending or future rate case or other proceedings. Removal costs recovered through rates are estimated costs to retire assets at the end of their expected useful lives that are recovered through customer rates over the lives of the associated assets. On August 31, 2018, the Postretirement Medical Benefit Plan was remeasured to reflect an announced plan amendment which changed benefits for certain union and non-union plan participants. As a result of the remeasurement, the Company recorded a $227 million reduction to the net accumulated postretirement benefit obligation, with a corresponding regulatory liability. Other regulatory liabilities include the financial impacts relating to the COVID-19 pandemic, TCJA reserve on revenue, pension and other postretirement benefit balancing accounts, legal settlement proceeds, deferred gains and various regulatory balancing accounts. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 5: Revenue Recognition Disaggregated Revenues Presented in the table below are operating revenues disaggregated for the year ended December 31, 2021: Revenues from Contracts with Customers Other Revenues Not from Contracts with Customers (a) Total Operating Revenues Regulated Businesses: Water services: Residential $ 1,935 $ — $ 1,935 Commercial 676 — 676 Fire service 151 — 151 Industrial 141 — 141 Public and other 230 — 230 Total water services 3,133 — 3,133 Wastewater services: Residential 151 — 151 Commercial 37 — 37 Industrial 4 — 4 Public and other 16 — 16 Total wastewater services 208 — 208 Miscellaneous utility charges 26 — 26 Alternative revenue programs — 9 9 Lease contract revenue — 8 8 Total Regulated Businesses 3,367 17 3,384 Market-Based Businesses 563 — 563 Other (16) (1) (17) Total operating revenues $ 3,914 $ 16 $ 3,930 (a) Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP. Presented in the table below are operating revenues disaggregated for the year ended December 31, 2020: Revenues from Contracts with Customers Other Revenues Not from Contracts with Customers (a) Total Operating Revenues Regulated Businesses: Water services: Residential $ 1,895 $ — $ 1,895 Commercial 627 — 627 Fire service 147 — 147 Industrial 133 — 133 Public and other 201 — 201 Total water services 3,003 — 3,003 Wastewater services: Residential 134 — 134 Commercial 34 — 34 Industrial 3 — 3 Public and other 14 — 14 Total wastewater services 185 — 185 Miscellaneous utility charges 32 — 32 Alternative revenue programs — 25 25 Lease contract revenue — 10 10 Total Regulated Businesses 3,220 35 3,255 Market-Based Businesses 540 — 540 Other (17) (1) (18) Total operating revenues $ 3,743 $ 34 $ 3,777 (a) Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP. Presented in the table below are operating revenues disaggregated for the year ended December 31, 2019: Revenues from Contracts with Customers Other Revenues Not from Contracts with Customers (a) Total Operating Revenues Regulated Businesses: Water services: Residential $ 1,734 $ 1 $ 1,735 Commercial 639 — 639 Fire service 142 — 142 Industrial 138 — 138 Public and other 214 — 214 Total water services 2,867 1 2,868 Wastewater services: Residential 119 — 119 Commercial 31 — 31 Industrial 3 — 3 Public and other 14 — 14 Total wastewater services 167 — 167 Miscellaneous utility charges 36 — 36 Alternative revenue programs — 16 16 Lease contract revenue — 7 7 Total Regulated Businesses 3,070 24 3,094 Market-Based Businesses 539 — 539 Other (22) (1) (23) Total operating revenues $ 3,587 $ 23 $ 3,610 (a) Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP. Contract Balances Contract assets and contract liabilities are the result of timing differences between revenue recognition, billings and cash collections. In the Company’s Market-Based Businesses, certain contracts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. Contract assets are recorded when billing occurs subsequent to revenue recognition and are reclassified to accounts receivable when billed and the right to consideration becomes unconditional. Contract liabilities are recorded when the Company receives advances from customers prior to satisfying contractual performance obligations, particularly for construction contracts, and are recognized as revenue when the associated performance obligations are satisfied. Contract assets of $71 million, $39 million and $13 million are included in unbilled revenues on the Consolidated Balance Sheets as of December 31, 2021, 2020 and 2019, respectively. There were $71 million of contract assets added during 2021, and $39 million of contract assets were transferred to accounts receivable during 2021. There were $60 million of contract assets added during 2020, and $34 million of contract assets were transferred to accounts receivable during 2020. Contract liabilities of $19 million, $35 million and $27 million are included in other current liabilities on the Consolidated Balance Sheets as of December 31, 2021, 2020 and 2019, respectively. There were $152 million of contract liabilities added during 2021, and $168 million of contract liabilities were recognized as revenue during 2021. There were $120 million of contract liabilities added during 2020, and $112 million of contract liabilities were recognized as revenue during 2020. Remaining Performance Obligations Remaining performance obligations (“RPOs”) represent revenues the Company expects to recognize in the future from contracts that are in progress. The Company enters into agreements for the provision of services to water and wastewater facilities for the U.S. military, municipalities and other customers. As of December 31, 2021, the Company’s O&M and capital improvement contracts in the Market-Based Businesses have RPOs. Contracts with the U.S. government for work on various military installations expire between 2051 and 2071 and have RPOs of $6.2 billion as of December 31, 2021, as measured by estimated remaining contract revenue. Such contracts are subject to customary termination provisions held by the U.S. government, prior to the agreed-upon contract expiration. Contracts with municipalities and commercial customers expire between 2022 and 2038 and have RPOs of $584 million as of December 31, 2021, as measured by estimated remaining contract revenue. Some of the Company’s long-term contracts to operate and maintain the federal government’s, a municipality’s or other party’s water or wastewater treatment and delivery facilities include responsibility for certain maintenance for some of those facilities, in exchange for an annual fee. Unless specifically required to perform certain maintenance activities, the maintenance costs are recognized when the maintenance is performed. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Note 6: Acquisitions and Divestitures Regulated Businesses Acquisitions During 2021, the Company closed on 23 acquisitions of various regulated water and wastewater systems for a total aggregate purchase price of $112 million, which added approximately 20,000 water and wastewater customers, including the acquisitions of the East Pasadena Water Company in California on September 23, 2021 for $34 million, the water and wastewater system assets of Valley Township in Pennsylvania on November 19, 2021 for $21 million and the Lowell water system in Indiana on December 28, 2021 for $25 million. Assets acquired from these acquisitions, principally utility plant, totaled $114 million and liabilities assumed totaled $2 million. Several of these acquisitions were accounted for as business combinations. The preliminary purchase price allocations related to acquisitions accounted for as business combinations will be finalized once the valuation of assets acquired has been completed, no later than one year after their acquisition date. On April 6, 2021, the Company’s Pennsylvania subsidiary entered into an agreement to acquire the wastewater assets of the York City Sewer Authority for $235 million, plus an amount of average daily revenue calculated for the period between the final meter reading and the date of closing. This system, directly and indirectly through bulk contracts, serves more than 45,000 customers. In connection with the execution of the acquisition agreement, the Company’s Pennsylvania subsidiary paid a $20 million deposit to the seller on April 30, 2021, which is refundable in the event the agreement is terminated prior to closing of the acquisition. The Company expects to close this acquisition in the first half of 2022, pending regulatory approval. On March 29, 2021, the Company’s New Jersey subsidiary entered into an agreement to acquire the water and wastewater assets of Egg Harbor City for $22 million. The water and wastewater systems currently serve approximately 1,500 customers each, or 3,000 combined, and are being sold through the New Jersey Water Infrastructure Protection Act process. The Company expects to close this acquisition in the second half of 2022, pending regulatory approval. During 2020, the Company closed on 23 acquisitions of various regulated water and wastewater systems for a total aggregate purchase price of $135 million. Assets acquired from these acquisitions, principally utility plant, totaled $159 million and liabilities assumed totaled $29 million, including $21 million of contributions in aid of construction and assumed debt of $7 million. The Company recorded additional goodwill of $5 million associated with two of its acquisitions, which is reported in its Regulated Businesses segment. During 2019, the Company closed on 21 acquisitions of various regulated water and wastewater systems for a total aggregate purchase price of $235 million. Assets acquired from these acquisitions, principally utility plant, totaled $237 million and liabilities assumed, primarily contributions in aid of construction, totaled $5 million. The Company recorded additional goodwill of $3 million associated with three of its acquisitions, which is reported in its Regulated Businesses segment. Assets Held for Sale On January 1, 2022, the Company completed the previously disclosed sale of its regulated utility operations in New York to Liberty Utilities (Eastern Water Holdings) Corp. (“Liberty”), an indirect, wholly owned subsidiary of Algonquin Power & Utilities Corp. Liberty purchased from the Company all of the capital stock of the Company’s New York subsidiary for a purchase price of $608 million in cash. The sale was approved by the New York State Department of Public Service on December 16, 2021. The Company’s regulated New York operations represented approximately 127,000 customers in the State of New York. The assets and related liabilities of the New York subsidiary were classified as held for sale on the Consolidated Balance Sheets as of December 31, 2021 and 2020. Presented in the table below are the components of assets held for sale and liabilities related to assets held for sale of the New York subsidiary as of December 31, 2021: December 31, 2021 Property, plant and equipment $ 556 Current assets 18 Regulatory assets 76 Goodwill 27 Other assets 6 Assets held for sale $ 683 Current liabilities 13 Regulatory liabilities 47 Other liabilities 23 Liabilities related to assets held for sale $ 83 Sale of Michigan American Water Company On February 4, 2022, the Company completed the sale of its operations in Michigan for approximately $6 million. Sale of Homeowner Services Group On December 9, 2021 (the “Closing Date”), the Company sold all of the equity interests in subsidiaries that comprised HOS to a wholly owned subsidiary of funds advised by Apax Partners LLP, a global private equity advisory firm (the “Buyer”), for total consideration of approximately $1.275 billion, resulting in pre-tax gain on sale of $748 million. The consideration is comprised of $480 million in cash, a seller promissory note issued by the Buyer in the principal amount of $720 million, and a contingent cash payment of $75 million payable upon satisfaction of certain conditions on or before December 31, 2023. See Note 19—Fair Value of Financial Information for additional information relating to the seller promissory note and contingent cash payment. The seller note has a five-year term, is payable in cash, and bears interest at a rate of 7.00% per year during the term. The repayment obligations of the Buyer under the seller note have been secured by a first priority security interest in certain property of the Buyer and the former HOS subsidiaries, including their cash and securities accounts, as well as a pledge of the equity interests in each of those subsidiaries, subject to certain limitations and exceptions. The seller note requires compliance with affirmative and negative covenants (subject to certain conditions, limitations and exceptions), including a covenant limiting the incurrence by the Buyer and certain affiliates of additional indebtedness in excess of certain thresholds, but does not include any financial maintenance covenants. Beginning December 9, 2024, the Company has a put right pursuant to which it may require the seller note to be repaid in full at par, plus accrued and unpaid interest, except that upon the occurrence of a disruption event in the broadly syndicated term loan “B” debt financing market, repayment by the Buyer pursuant to the Company’s exercise of the put right will be delayed until the market disruption event ends. The seller note may not be prepaid at the Buyer’s election except in certain limited circumstances before the fourth anniversary of the Closing Date. If the Buyer seeks to repay the seller note in breach of this non-call provision, an event of default will occur under the seller note and the Company may, among other actions, demand repayment in full together with a premium ranging from 105.5% to 107.5% of the outstanding principal amount of the loan and a customary “make-whole” payment. The Company and the Buyer also entered into a revenue share agreement, pursuant to which the Company is to receive 10% of the revenue generated from customers who are billed for home warranty services through an applicable Company subsidiary (an “on-bill” arrangement), and 15% of the revenue generated from any future on-bill arrangements entered into after the closing. Unless earlier terminated, this agreement has a term of up to 15 years, which may be renewed for up to two five-year periods. The pro forma impact of the Company’s divestitures was not material to the Consolidated Statements of Operations for the years ended December 31, 2021, 2020 and 2019. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 7: Property, Plant and Equipment Presented in the table below are the major classes of property, plant and equipment by category as of December 31: 2021 2020 Range of Remaining Useful Lives Weighted Average Useful Life Utility plant: Land and other non-depreciable assets $ 210 $ 174 Sources of supply 938 897 2 to 127 years 46 years Treatment and pumping facilities 4,198 3,984 3 to 111 years 39 years Transmission and distribution facilities 12,308 11,457 9 to 130 years 69 years Services, meters and fire hydrants 4,888 4,555 5 to 90 years 31 years General structures and equipment 2,200 2,003 1 to 109 years 15 years Waste collection 1,363 1,288 5 to 113 years 58 years Waste treatment, pumping and disposal 912 859 2 to 139 years 38 years Construction work in progress 934 837 Less: Utility plant included in assets held for sale (a) (664) (646) Total utility plant 27,287 25,408 Nonutility property 126 211 3 to 50 years 6 years Less: Nonutility plant included in assets held for sale (a) — (5) Total property, plant and equipment $ 27,413 $ 25,614 (a) This property, plant and equipment is related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and is included in assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information. Property, plant and equipment depreciation expense amounted to $550 million , $520 million and $508 million for the years ended December 31, 2021, 2020 and 2019, respectively and was included in depreciation and amortization expense on the Consolidated Statements of Operations. The provision for depreciation expressed as a percentage of the aggregate average depreciable asset balances was 2.77%, 2.82% and 2.96% for years December 31, 2021, 2020 and 2019, respectively. Additionally, the Company had capital expenditures acquired on account but unpaid of $292 million and $221 million included in accrued liabilities on the Consolidated Balance Sheets as of December 31, 2021 and 2020, respectively. In 2019, the Company completed and submitted its project completion certification to the New Jersey Economic Development Authority (“NJEDA”) in connection with its capital investment in its corporate headquarters in Camden, New Jersey. The NJEDA determined that the Company is qualified to receive $164 million in tax credits over a ten-year period. The Company is required to meet various annual requirements in order to monetize one-tenth of the tax credits annually and is subject to a claw-back period if the Company does not meet certain NJEDA requirements of the tax credit program in years 11 through 15. The Company has made the necessary annual filings for the years ended December 31, 2019 and 2020 and expects to file the 2021 filing by April 30, 2022. As a result, the Company had receivables of $49 million and $115 million in other current assets and other long-term assets, respectively, on the Consolidated Balance Sheets as of December 31, 2021. The submitted filings are under review by the NJEDA and it is expected that the Company will receive final NJEDA approval and monetize the credits in the first half of 2022. In March 2020, in connection with the COVID-19 pandemic, the NJEDA, pursuant to Executive Order 103 - State of Emergency and a Public Health Emergency, temporarily waived the requirement that a full-time employee must spend at least 80% of his or her time at the qualified business facility (“QBF”) to meet the definition of eligible position or full-time job. The waiver will continue for as long as New Jersey’s Executive Order 281 is valid. On July 2, 2021, New Jersey’s Governor approved a bill that revised provisions of the Economic Recovery Act of 2020 and other economic development programs, including amending the definition of an eligible position and full-time job in the Grow New Jersey Program and replacing the 80% requirement of time spent at the QBF. The bill states that an eligible position is one that is filled by a full-time employee who has their primary office at the QBF and spends at least 60% of their time at the QBF. The bill specifically states that it supersedes the existing regulations and existing incentive agreements that require an eligible employee spend at least 80% of their time at the QBF. |
Allowance for Uncollectible Acc
Allowance for Uncollectible Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |
Allowance for Uncollectible Accounts | Note 8: Allowance for Uncollectible Accounts Presented in the table below are the changes in the allowances for uncollectible accounts for the years ended December 31: 2021 2020 2019 Balance as of January 1 $ (60) $ (41) $ (45) Amounts charged to expense (37) (34) (28) Amounts written off 17 12 32 Less: Allowance for uncollectible accounts included in assets held for sale (a) 5 3 — Balance as of December 31 $ (75) $ (60) $ (41) (a) This portion of the allowance for uncollectible accounts is related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and is included in assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 9: Goodwill and Other Intangible Assets Goodwill Presented in the table below are the changes in the carrying value of goodwill for the years ended December 31, 2021 and 2020: Regulated Businesses Market-Based Businesses Consolidated Cost Accumulated Impairment Cost Accumulated Impairment Cost Accumulated Impairment Total Net Balance as of January 1, 2020 $ 3,497 $ (2,332) $ 483 $ (108) $ 3,980 $ (2,440) $ 1,540 Goodwill from acquisitions 5 — — — 5 — 5 Measurement period adjustments (2) — — — (2) — (2) Less: Goodwill included in assets held for sale (a) (39) — — — (39) — (39) Balance as of December 31, 2020 $ 3,461 $ (2,332) $ 483 $ (108) $ 3,944 $ (2,440) $ 1,504 Measurement period adjustments (7) — — — (7) — (7) Goodwill included in assets held for sale (a) 12 — — — 12 — 12 Goodwill reduced through sale of HOS — — (370) — (370) — (370) Balance as of December 31, 2021 $ 3,466 $ (2,332) $ 113 $ (108) $ 3,579 $ (2,440) $ 1,139 (a) This goodwill is related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and is included in assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information. In 2021 , the Company reduced goodwill by $370 million included in Market-Based Businesses through the sale of HOS. See Note 6—Acquisitions and Divestitures for additional information relating to the sale of HOS. The Company completed its annual impairment testing of goodwill as of November 30, 2021, which included qualitative assessments of its Regulated Businesses and MSG reporting units. Based on these assessments, the Company determined that there were no factors present that would indicate that the fair value of these reporting units was less than their respective carrying values as of November 30, 2021. In 2020, the Company acquired goodwill of $5 million associated with two of its acquisitions in the Regulated Businesses segment. Intangible Assets The Company held finite-lived intangible assets, including customer relationships and other intangible assets prior to the sale of HOS during the fourth quarter of 2021. All of the Company’s finite-lived intangible assets were sold as part of the HOS sale transaction. As a result, there was no gross carrying value or net book value of customer relationships and other intangible assets remaining as of December 31, 2021. The gross carrying value of customer relationships and other intangible assets as of December 31, 2020 was $78 million and $13 million, respectively. Accumulated amortization of customer relationships and other intangible assets was $29 million and $7 million, respectively, as of December 31, 2020. Intangible asset amortization expense amounted to $9 million, $12 million and $14 million for the years ended December 31, 2021, 2020 and 2019, respectively. Amortization expense related to customer relationships and other intangible assets was $7 million and $2 million, respectively, for the year ended December 31, 2021. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Note 10: Shareholders ’ Equity Common Stock Under the Company’s dividend reinvestment and direct stock purchase plan (the “DRIP”), shareholders may reinvest cash common stock dividends and purchase additional shares of Company common stock, up to certain limits, through the plan administrator without paying brokerage commissions. Shares purchased by participants through the DRIP may be newly issued shares, treasury shares, or at the Company’s election, shares purchased by the plan administrator in the open market or in privately negotiated transactions. Purchases generally will be made and credited to DRIP accounts once each week. As of December 31, 2021, there were approximately 5.1 million shares available for future issuance under the DRIP. Anti-dilutive Stock Repurchase Program In February 2015, the Company’s Board of Directors authorized an anti-dilutive stock repurchase program, which allows the Company to purchase up to 10 million shares of its outstanding common stock from time to time over an unrestricted period of time. The Company did not repurchase shares of common stock during the years ended December 31, 2021 and 2020. As of December 31, 2021, there were 5.1 million shares of common stock available for purchase under the program. Accumulated Other Comprehensive Loss Presented in the table below are the changes in accumulated other comprehensive loss by component, net of tax, for the years ended December 31, 2021 and 2020: Defined Benefit Plans Gain (Loss) on Cash Flow Hedge Accumulated Other Comprehensive Loss Employee Benefit Plan Funded Status Amortization of Prior Service Cost Amortization of Actuarial Loss Beginning balance as of January 1, 2020 $ (94) $ 1 $ 60 $ (3) $ (36) Other comprehensive income (loss) before reclassification (12) — — (4) (16) Amounts reclassified from accumulated other comprehensive loss — — 3 — 3 Net other comprehensive income (loss) (12) — 3 (4) (13) Ending balance as of December 31, 2020 $ (106) $ 1 $ 63 $ (7) $ (49) Other comprehensive income (loss) before reclassification (1) — — 1 — Amounts reclassified from accumulated other comprehensive loss — — 4 — 4 Net other comprehensive income (loss) (1) — 4 1 4 Ending balance as of December 31, 2021 $ (107) $ 1 $ 67 $ (6) $ (45) The Company does not reclassify the amortization of defined benefit pension cost components from accumulated other comprehensive loss directly to net income in its entirety, as a portion of these costs have been deferred as a regulatory asset. These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 16—Employee Benefits for additional information. The amortization of the gain (loss) on cash flow hedges is reclassified to net income during the period incurred and is included in interest, net in the accompanying Consolidated Statements of Operations. Dividends and Distributions The Company’s Board of Directors authorizes the payment of dividends. The Company’s ability to pay dividends on its common stock is subject to having access to sufficient sources of liquidity, net income and cash flows of the Company’s subsidiaries, the receipt of dividends and direct and indirect distributions from, and repayments of indebtedness of, the Company’s subsidiaries, compliance with Delaware corporate and other laws, compliance with the contractual provisions of debt and other agreements and other factors. The Company’s dividend rate on its common stock is determined by the Board of Directors on a quarterly basis and takes into consideration, among other factors, current and possible future developments that may affect the Company’s income and cash flows. When dividends on common stock are declared, they are typically paid in March, June, September and December. Historically, dividends have been paid quarterly to holders of record less than 30 days prior to the distribution date. Since the dividends on the Company’s common stock are not cumulative, only declared dividends are paid. During 2021, 2020 and 2019, the Company paid $428 million, $389 million and $353 million in cash dividends, respectively. Presented in the table below is the per share cash dividends paid for the years ended December 31: 2021 2020 2019 December $ 0.6025 $ 0.55 $ 0.50 September $ 0.6025 $ 0.55 $ 0.50 June $ 0.6025 $ 0.55 $ 0.50 March $ 0.55 $ 0.50 $ 0.455 On December 9, 2021, the Company’s Board of Directors declared a quarterly cash dividend payment of $0.6025 per share payable on March 1, 2022, to shareholders of record as of February 8, 2022. Under applicable law, the Company’s subsidiaries may pay dividends on their capital stock or other equity only from retained, undistributed or current earnings. A significant loss recorded at a subsidiary may limit the amount of the dividend that the subsidiary can pay. The ability of the Company’s subsidiaries to pay upstream dividends, make other upstream distributions or repay indebtedness to parent company or American Water Capital Corp. (“AWCC”), the Company’s wholly owned financing subsidiary, as applicable, is subject to compliance with applicable corporate, tax and other laws, regulatory restrictions and financial and other contractual obligations, including, for example, (i) regulatory capital, surplus or net worth requirements, (ii) outstanding debt service obligations, (iii) requirements to make preferred and preference stock dividend payments, and (iv) other contractual agreements, covenants or obligations made or entered into by the Company and its subsidiaries. Regulatory Restrictions on Indebtedness The issuance of long-term debt or equity securities by the Company or long-term debt by AWCC does not require authorization of any state PUC if no guarantee or pledge of the regulated subsidiaries is utilized. Based on the needs of the Regulated Businesses and parent company, AWCC may borrow funds or issue its debt in the capital markets and then, through intercompany loans, provide these borrowings to the Regulated Businesses or parent company. PUC authorization is generally required for the regulated subsidiaries to incur long-term debt. The Company’s regulated subsidiaries normally obtain these required PUC authorizations on a periodic basis to cover their anticipated financing needs for a period of time, or, as necessary, in connection with a specific financing or refinancing of debt. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Note 11: Stock Based Compensation The Company has granted stock options, stock units and dividend equivalents to non-employee directors, officers and other key employees of the Company pursuant to the terms of its 2007 Omnibus Equity Compensation Plan (the “2007 Plan”). Stock units under the 2007 Plan generally vest based on (i) continued employment with the Company (“RSUs”), or (ii) continued employment with the Company where distribution of the shares is subject to the satisfaction in whole or in part of stated performance-based goals (“PSUs”). The 2007 Plan has been replaced by the 2017 Omnibus Plan, as defined below, and no additional awards may be granted under the 2007 Plan. However, shares may still be issued under the 2007 Plan pursuant to the terms of awards previously issued under that plan prior to May 12, 2017. In May 2017, the Company’s shareholders approved the American Water Works Company, Inc. 2017 Omnibus Equity Compensation Plan (the “2017 Omnibus Plan”). The Company has granted stock units, including RSUs and PSUs, stock awards and dividend equivalents to non-employee directors, officers and employees under the 2017 Omnibus Plan. A total of 7.2 million shares of common stock may be issued under the 2017 Omnibus Plan. As of December 31, 2021, 6.5 million shares were available for grant under the 2017 Omnibus Plan. The 2017 Omnibus Plan provides that grants of awards may be in any of the following forms: incentive stock options, nonqualified stock options, stock appreciation rights, stock units, stock awards, other stock-based awards and dividend equivalents. Dividend equivalents may be granted only on stock units or other stock-based awards. The 2017 Omnibus Plan expires in 2027. The cost of services received from employees in exchange for the issuance of stock options and restricted stock awards is measured based on the grant date fair value of the awards issued. The value of stock options and stock unit awards at the date of the grant is amortized through expense over the requisite service period. All awards granted in 2021, 2020 and 2019 are classified as equity. The Company recognizes compensation expense for stock awards over the vesting period of the award. The Company stratified its grant populations and used historic employee turnover rates to estimate employee forfeitures. The estimated rate is compared to the actual forfeitures at the end of the reporting period and adjusted as necessary. There have been no significant adjustments to the forfeiture rates during 2021, 2020 and 2019. There were no grants of stock options to employees after 2016, and the remaining stock options outstanding as of December 31, 2021 were not material. Presented in the table below is the stock-based compensation expense recorded in O&M expense in the accompanying Consolidated Statements of Operations for the years ended December 31: 2021 2020 2019 RSUs and PSUs $ 15 $ 19 $ 15 Nonqualified employee stock purchase plan 2 2 2 Stock-based compensation 17 21 17 Income tax benefit (4) (5) (4) Stock-based compensation expense, net of tax $ 13 $ 16 $ 13 There were no significant stock-based compensation costs capitalized during the years ended December 31, 2021, 2020 and 2019. Subject to limitations on deductibility imposed by the Federal income tax code, the Company receives a tax deduction based on the intrinsic value of the award at the exercise date for stock options and the distribution date for stock units. For each award, throughout the requisite service period, the Company records the tax impacts related to compensation costs as deferred income tax assets. The tax deductions in excess of the deferred benefits recorded throughout the requisite service period are recorded to the Consolidated Statements of Operations and are presented in the financing section of the Consolidated Statements of Cash Flows. Stock Units During 2021, 2020 and 2019, the Company granted RSUs to certain employees under the 2017 Omnibus Plan. RSUs generally vest based on continued employment with the Company over periods ranging from one During 2021, 2020 and 2019, the Company granted stock units to non-employee directors under the 2017 Omnibus Plan. The stock units were vested in full on the date of grant; however, distribution of the shares will be made within 30 days of the earlier of (i) 15 months after the date of the last annual meeting of shareholders, subject to any deferral election by the director, or (ii) the participant’s separation from service. Because these stock units vested on the grant date, the total grant date fair value was recorded in operation and maintenance expense on the grant date. The RSUs are valued at the closing price of the Company’s common stock on the date of the grant and the majority vest ratably over a three-year service period. These RSUs are amortized through expense over the requisite service period using the straight-line method. Presented in the table below is RSU activity for the year ended December 31, 2021: Shares (in thousands) Weighted Average Grant Date Fair Value (per share) Non-vested total as of December 31, 2020 92 $ 100.39 Granted 45 158.54 Vested (76) 122.26 Forfeited (13) 128.93 Non-vested total as of December 31, 2021 48 $ 112.22 As of December 31, 2021, $3 million of total unrecognized compensation cost related to the nonvested RSUs is expected to be recognized over the weighted average remaining life of 1.33 years. The total fair value of stock units and RSUs vested was $9 million, $5 million and $4 million for the years ended December 31, 2021, 2020 and 2019, respectively. During 2021, 2020 and 2019, the Company granted PSUs to certain employees under the 2017 Omnibus Plan. The majority of PSUs vest ratably based on continued employment with the Company over the three-year performance period (the “Performance Period”). Distribution of the performance shares is contingent upon the achievement of one or more internal performance measures and, separately, a relative total shareholder return performance measure, over the Performance Period. Presented in the table below is PSU activity for the year ended December 31, 2021: Shares (in thousands) Weighted Average Grant Date Fair Value (per share) Non-vested total as of December 31, 2020 293 $ 105.70 Granted 145 128.30 Vested (186) 75.47 Forfeited (20) 159.99 Non-vested total as of December 31, 2021 232 $ 139.40 As of December 31, 2021, $3 million of total unrecognized compensation cost related to the nonvested PSUs is expected to be recognized over the weighted average remaining life of 0.71 years. The total fair value of PSUs vested was $22 million, $18 million and $14 million for the years ended December 31, 2021, 2020 and 2019, respectively. PSUs granted with one or more internal performance measures are valued at the market value of the closing price of the Company’s common stock on the date of grant. PSUs granted with a relative total shareholder return condition are valued using a Monte Carlo simulation model. Expected volatility is based on historical volatilities of traded common stock of the Company and comparative companies using daily stock prices over the past three years. The expected term is three years and the risk-free interest rate is based on the three-year U.S. Treasury rate in effect as of the measurement date. Presented in the table below are the weighted average assumptions used in the Monte Carlo simulation and the weighted average grant date fair values of PSUs granted for the years ended December 31: 2021 2020 2019 Expected volatility 28.59% 16.65% 16.80% Risk-free interest rate 0.22% 1.28% 2.47% Expected life (years) 3.0 3.0 3.0 Grant date fair value per share $229.22 $159.64 $110.37 The grant date fair value of PSUs that vest ratably and have market and/or performance conditions are amortized through expense over the requisite service period using the graded-vesting method. Employee Stock Purchase Plan The Company maintains a nonqualified employee stock purchase plan (the “ESPP”) that expires in 2027 through which employee participants (other than the Company’s executive officers) may use payroll deductions to acquire Company common stock at a purchase price of 85% of the fair market value of the common stock at the end of a three-month purchase period. A total of 2.0 million shares may be issued under the ESPP, and as of December 31, 2021, there were 1.6 million shares of common stock reserved for issuance under the ESPP. The ESPP is considered compensatory. During the years ended December 31, 2021, 2020 and 2019, the Company issued 80 thousand, 86 thousand and 88 thousand shares, respectively, under the ESPP. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 12: Long-Term Debt The Company obtains long-term debt through AWCC primarily to fund capital expenditures of the Regulated Businesses and to lend funds to parent company to refinance debt and for other purposes. Presented in the table below are the components of long-term debt as of December 31: Rate Weighted Average Rate Maturity 2021 2020 Long-term debt of AWCC: (a) Senior notes—fixed rate 2.30%-8.27% 3.83% 2023-2051 $ 8,965 $ 8,191 Private activity bonds and government funded debt—fixed rate 0.60%-2.45% 1.63% 2023-2031 190 191 Long-term debt of other American Water subsidiaries: Private activity bonds and government funded debt—fixed rate 0.00%-5.50% 1.70% 2022-2048 739 735 Mortgage bonds—fixed rate 6.35%-9.19% 7.36% 2023-2039 534 565 Mandatorily redeemable preferred stock 8.47%-9.75% 8.60% 2024-2036 4 5 Finance lease obligations 12.25% 12.25% 2026 1 1 Long-term debt 10,433 9,688 Unamortized debt (discount) premium, net (b) (9) (4) Unamortized debt issuance costs (23) (22) Less current portion of long-term debt (57) (329) Total long-term debt $ 10,344 $ 9,333 (a) This indebtedness is considered “debt” for purposes of a support agreement between parent company and AWCC, which serves as a functional equivalent of a full and unconditional guarantee by parent company of AWCC’s payment obligations under such indebtedness. (b) Includes debt discount, net of fair value adjustments previously recognized in acquisition purchase accounting. All mortgage bonds and $738 million of the private activity bonds and government funded debt held by the Company’s subsidiaries were collateralized as of December 31, 2021. Long-term debt indentures contain a number of covenants that, among other things, limit, subject to certain exceptions, AWCC from issuing debt secured by the Company’s consolidated assets. Certain long-term notes require the Company to maintain a ratio of consolidated total indebtedness to consolidated total capitalization of not more than 0.70 to 1.00. The ratio as of December 31, 2021 was 0.60 to 1.00. In addition, the Company has $859 million of notes which include the right to redeem the notes at par value, in whole or in part, from time to time, subject to certain restrictions, with a weighted average interest rate of 1.84%. Presented in the table below are future sinking fund payments and debt maturities: Amount 2022 $ 57 2023 280 2024 474 2025 597 2026 441 Thereafter 8,584 Presented in the table below are the issuances of long-term debt in 2021: Company Type Rate Weighted Average Rate Maturity Amount AWCC Senior notes—fixed rate 2.30%-3.25% 2.78% 2031-2051 $ 1,100 Other American Water subsidiaries Private activity bonds and government funded debt—fixed rate 0.00%-5.00% 0.04% 2022-2047 18 Total issuances $ 1,118 The Company incurred debt issuance costs of $11 million related to the above issuances. Presented in the table below are the retirements and redemptions of long-term debt in 2021 through sinking fund provisions, optional redemption or payment at maturity: Company Type Rate Weighted Average Rate Maturity Amount AWCC Private activity bonds and government funded debt—fixed rate 1.79%-6.55% 5.94% 2021-2031 $ 327 Other American Water subsidiaries Private activity mortgage bonds 9.13%-9.69% 9.52% 2021 31 Other American Water subsidiaries Private activity bonds and government funded debt—fixed rate 0.00%-5.50% 1.38% 2021-2048 13 Other American Water subsidiaries Mandatory redeemable preferred stock 8.49%-8.49% 8.49% 2022-2022 1 Total retirements and redemptions $ 372 On May 10, 2021, AWCC completed a $1.1 billion debt offering which included the sale of $550 million aggregate principal amount of its 2.30% senior notes due 2031 and $550 million aggregate principal amount of its 3.25% senior notes due 2051. At the closing of the offering, AWCC received, after deduction of underwriting discounts and before deduction of offering expenses, net proceeds of $1,086 million. AWCC used the net proceeds of this offering: (i) to lend funds to parent company and its regulated subsidiaries; (ii) to prepay $251 million aggregate principal amount of AWCC’s outstanding 5.77% Series D Senior Notes due December 21, 2021 (the “Series D Notes”) and $76 million aggregate principal amount of AWCC’s outstanding 6.55% Series H Senior Notes due May 15, 2023 (the “Series H Notes,” and together with the Series D Notes, the “Series Notes”); (iii) to repay AWCC’s commercial paper obligations; and (iv) for general corporate purposes. After the prepayments described above, none of the Series D Notes, and approximately $14 million aggregate principal amount of the Series H Notes, remain outstanding. As a result of AWCC’s prepayment of the Series Notes, a make-whole premium of $15 million was paid to the holders thereof on June 14, 2021. Substantially all of the early debt extinguishment costs were allocable to the Company’s utility subsidiaries and recorded as regulatory assets, as the Company believes they are probable of recovery in future rates. One of the principal market risks to which the Company is exposed is changes in interest rates. In order to manage the exposure, the Company follows risk management policies and procedures, including the use of derivative contracts such as swaps. The Company also reduces exposure to interest rates by managing commercial paper and debt maturities. The Company does not enter into derivative contracts for speculative purposes and does not use leveraged instruments. The derivative contracts entered into are for periods consistent with the related underlying exposures. The Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations and minimizes this risk by dealing only with leading, creditworthy financial institutions having long-term credit ratings of “A” or better. On May 6, 2021, the Company entered into two 10-year treasury lock agreements, with notional amounts of $125 million and $150 million, to reduce interest rate exposure on debt, which was subsequently issued on May 10, 2021. These treasury lock agreements had an average fixed rate of 1.58%. The Company designated these treasury lock agreements as cash flow hedges, with their fair value recorded in accumulated other comprehensive gain or loss. On May 10, 2021, the Company terminated these two treasury lock agreements with an aggregate notional amount of $275 million, realizing a net gain of less than $1 million, to be amortized through interest, net over a 10-year period, in accordance with the terms of the $1.1 billion new debt issued on May 10, 2021. No ineffectiveness was recognized on hedging instruments for the years ended December 31, 2021 and 2020. |
Short-Term Debt
Short-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Debt [Abstract] | |
Short-Term Debt | Note 13: Short-Term Debt Liquidity needs for capital investment, working capital and other financial commitments are generally funded through cash flows from operations, public and private debt offerings, commercial paper markets and, if and to the extent necessary, borrowings under the AWCC revolving credit facility. Additionally, proceeds from the aforementioned sales of HOS and the Company’s New York subsidiary will be used primarily for capital investment in the Regulated Businesses. The revolving credit facility provides $2.25 billion in aggregate total commitments from a diversified group of financial institutions. The termination date of the credit agreement with respect to AWCC’s revolving credit facility is March 21, 2025. The facility is used principally to support AWCC’s commercial paper program, to provide additional liquidity support and to provide a sub-limit of up to $150 million for letters of credit. Letters of credit are non-debt instruments maintained to provide credit support for certain transactions as requested by third parties. Subject to satisfying certain conditions, the credit agreement also permits AWCC to increase the maximum commitment under the facility by up to an aggregate of $500 million. As of December 31, 2021, AWCC had no outstanding borrowings and $76 million of outstanding letters of credit under the revolving credit facility, with $1.59 billion available to fulfill the Company’s short-term liquidity needs and to issue letters of credit. The Company regularly evaluates the capital markets and closely monitors the financial condition of the financial institutions with contractual commitments in its revolving credit facility. Interest rates on advances under the facility are based on a credit spread to the LIBOR rate (or applicable market replacement rate) or base rate in accordance with Moody Investors Service’s and Standard & Poor’s Financial Services’ then applicable credit rating on AWCC’s senior unsecured, non-credit enhanced debt. On March 20, 2020, AWCC entered into a Term Loan Credit Agreement, by and among parent company, AWCC and the lenders party thereto (the “Term Loan Facility”). As of December 31, 2020, $500 million of principal was outstanding under the Term Loan Facility. The Term Loan Facility commitments terminated at maturity on March 19, 2021, and the Term Loan Facility was repaid in full. Borrowings under the Term Loan Facility bore interest at a variable annual rate based on LIBOR, plus a margin of 0.80%. Short-term debt consists of commercial paper and credit facility borrowings totaling $584 million and $786 million as of December 31, 2021 and 2020, respectively. The weighted average interest rate on AWCC’s outstanding short-term borrowings was approximately 0.25%, for the year ended December 31, 2021. The weighted average interest rate on AWCC’s outstanding short-term borrowings was 1.16%, for the year ended December 31, 2020, including $500 million of outstanding principal on the Term Loan Facility as of December 31, 2020. As of December 31, 2021 there were no commercial paper or credit facility borrowings outstanding with maturities greater than three months. Presented in the tables below is the aggregate credit facility commitments, commercial paper limit and letter of credit availability under the revolving credit facility, as well as the available capacity for each, as of December 31: 2021 Commercial Paper Limit Letters of Credit Total (a) (In millions) Total availability $ 2,100 $ 150 $ 2,250 Outstanding debt (584) (76) (660) Remaining availability as of December 31, 2021 $ 1,516 $ 74 $ 1,590 (a) Total remaining availability of $1.59 billion as of December 31, 2021 may be accessed through revolver draws. 2020 Commercial Paper Limit Letters of Credit Total (a) (In millions) Total availability $ 2,100 $ 150 $ 2,250 Outstanding debt (786) (76) (862) Remaining availability as of December 31, 2020 $ 1,314 $ 74 $ 1,388 (a) Total remaining availability may be accessed through revolver draws. Presented in the table below is the Company’s total available liquidity as of December 31, 2021 and 2020, respectively: Cash and Cash Equivalents Availability on Revolving Credit Facility Total Available Liquidity (In millions) Available liquidity as of December 31, 2021 $ 116 $ 1,590 $ 1,706 Available liquidity as of December 31, 2020 $ 547 $ 1,388 $ 1,935 Presented in the table below is the short-term borrowing activity for AWCC for the years ended December 31: 2021 2020 Average borrowings $ 910 $ 1,047 Maximum borrowings outstanding 1,647 2,172 Weighted average interest rates, computed on daily basis 0.25 % 1.16 % Weighted average interest rates, as of December 31 0.20 % 0.53 % The changes in average borrowings between periods were mainly attributable to the $500 million borrowed under the Term Loan Facility during 2020, which terminated and was repaid in full at maturity on March 19, 2021. The credit facility requires the Company to maintain a ratio of consolidated debt to consolidated capitalization of not more than 0.70 to 1.00. The ratio as of December 31, 2021 was 0.60 to 1.00. None of the Company’s borrowings are subject to default or prepayment as a result of a downgrading of securities, although such a downgrading could increase fees and interest charges under AWCC’s revolving credit facility. |
General Taxes
General Taxes | 12 Months Ended |
Dec. 31, 2021 | |
General Taxes [Abstract] | |
General Taxes | Note 14: General Taxes Presented in the table below is the components of general tax expense for the years ended December 31: 2021 2020 2019 Property and capital stock $ 149 $ 140 $ 124 Gross receipts and franchise 121 116 110 Payroll 39 36 35 Other general 12 11 11 Total general taxes $ 321 $ 303 $ 280 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15: Income Taxes Presented in the table below is the components of income tax expense for the years ended December 31: 2021 2020 2019 Current income taxes: State $ 72 $ 8 $ 4 Federal 75 — — Total current income taxes $ 147 $ 8 $ 4 Deferred income taxes: State $ 10 $ 49 $ 54 Federal 221 159 155 Amortization of deferred investment tax credits (1) (1) (1) Total deferred income taxes 230 207 208 Provision for income taxes $ 377 $ 215 $ 212 Presented in the table below is a reconciliation between the statutory federal income tax rate and the Company’s effective tax rate for the years ended December 31: 2021 2020 2019 Income tax at statutory rate 21.0 % 21.0 % 21.0 % Increases (decreases) resulting from: State taxes, net of federal taxes 3.9 % 4.8 % 5.4 % EADIT (3.6) % (2.1) % (0.9) % Tax impact due to the sale of HOS 1.6 % — % — % Other, net 0.1 % (0.4) % (0.1) % Effective tax rate 23.0 % 23.3 % 25.4 % Presented in the table below are the components of the net deferred tax liability as of December 31: 2021 2020 Deferred tax assets: Advances and contributions $ 439 $ 424 Tax losses and credits 10 65 Regulatory income tax assets 301 329 Pension and other postretirement benefits 50 100 Other 144 165 Total deferred tax assets 944 1,083 Valuation allowance (10) (19) Total deferred tax assets, net of allowance $ 934 $ 1,064 Deferred tax liabilities: Property, plant and equipment $ 3,087 $ 2,913 Deferred pension and other postretirement benefits 69 97 Other 180 216 Total deferred tax liabilities 3,336 3,226 Less: Deferred tax liabilities included in liabilities related to assets held for sale (a) — 69 Total deferred tax liabilities, net of deferred tax assets $ (2,402) $ (2,093) (a) These deferred tax liabilities are related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and are included in liabilities related to assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information. The Company recognized no federal net operating loss (“NOL”) carryforwards as of December 31, 2021 and $366 million as of December 31, 2020. The Company fully utilized its federal NOL carryforwards in 2021 due to the sale of HOS, and therefore, no valuation allowance is required. As of December 31, 2021 and 2020, the Company had state NOLs of $123 million and $357 million, respectively, a portion of which are offset by a valuation allowance as the Company does not believe these NOLs are more likely than not to be realized. The state NOL carryforwards expire in 2021 through 2041. The Company files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state or local or non-U.S. income tax examinations by tax authorities for years on or before 2012. The Company has state income tax examinations in progress and does not expect material adjustments to result. Presented in the table below are the changes in gross liability, excluding interest and penalties, for unrecognized tax benefits: Amount Balance as of January 1, 2020 $ 110 Increases in current period tax positions 18 Decreases in prior period measurement of tax positions (6) Balance as of December 31, 2020 $ 122 Increases in current period tax positions 23 Decreases in prior period measurement of tax positions (5) Balance as of December 31, 2021 $ 140 The Company’s tax positions relate primarily to the deductions claimed for repair and maintenance costs on its utility plant. The Company does not anticipate material changes to its unrecognized tax benefits within the next year. As discussed above, the Company utilized its remaining federal NOLs in 2021, and therefore this federal tax attribute will not be available to reduce the federal liabilities for uncertain tax positions or interest accrued as presented on the Company’s Consolidated Financial Statements. If the Company sustains all of its positions as of December 31, 2021, an unrecognized tax benefit of $10 million, excluding interest and penalties, would impact the Company’s effective tax rate. The Company had an insignificant amount of interest and penalties related to its tax positions as of December 31, 2021 and 2020. Presented in the table below are the changes in the valuation allowance: Amount Balance as of January 1, 2019 $ 14 Increases in current period tax positions 7 Balance as of December 31, 2019 $ 21 Decreases in current period tax positions (2) Balance as of December 31, 2020 $ 19 Decreases in current period tax positions (9) Balance as of December 31, 2021 $ 10 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Note 16: Employee Benefits Pension and Other Postretirement Benefits The Company maintains noncontributory defined benefit pension plans covering eligible employees of its regulated utility and shared services operations. Benefits under the plans are based on the employee’s years of service and compensation. The pension plans have been closed for all new employees. The pension plans were closed for most employees hired on or after January 1, 2006. Union employees hired on or after January 1, 2001, except for specific eligible groups specified in the plan, had their accrued benefit frozen and will be able to receive this benefit as a lump sum upon termination or retirement. Union employees hired on or after January 1, 2001 and non-union employees hired on or after January 1, 2006 are provided with a 5.25% of base pay defined contribution plan. The Company does not participate in a multi-employer plan. The Company also has unfunded noncontributory supplemental nonqualified pension plans that provide additional retirement benefits to certain employees. The Company’s pension funding practice is to contribute at least the greater of the minimum amount required by the Employee Retirement Income Security Act of 1974 or the normal cost. Further, the Company will consider additional cash contributions and/or available prefunding balances if needed to avoid “at risk” status and benefit restrictions under the Pension Protection Act of 2006 (“PPA”). The Company may also consider increased contributions, based on other financial requirements and the plans’ funded position. Pension expense in excess of the amount contributed to the pension plans is deferred by certain regulated subsidiaries pending future recovery in rates charged for utility services as contributions are made to the plans. See Note 4—Regulatory Matters for additional information. Pension plan assets are invested in a number of actively managed, commingled funds, and limited partnerships including equities, fixed income securities, guaranteed annuity contracts with insurance companies, real estate funds and real estate investment trusts (“REITs”). The Company maintains other postretirement benefit plans providing varying levels of medical and life insurance to eligible retirees. The retiree welfare plans are closed for union employees hired on or after January 1, 2006. The plans had previously closed for non-union employees hired on or after January 1, 2002. The Company’s policy is to fund other postretirement benefit costs up to the amount recoverable through rates. Assets of the plans are invested in a number of actively managed funds in the form of separate accounts, commingled funds and limited partnerships, including equities and fixed income securities. The investment policy guideline of the pension plan is focused on diversification, improving returns and reducing the volatility of the funded status over a long-term horizon. The investment policy guidelines of the postretirement plans focus on the appropriate strategy given the funded status of the plans. None of the Company’s securities are included in pension or other postretirement benefit plan assets. The Company uses fair value for all classes of assets in the calculation of market-related value of plan assets. As of 2018, the fair values and asset allocations of the pension plan assets include the American Water Pension Plan, the New York Water Service Corporation Pension Plan, and the Shorelands Water Company, Inc. Pension Plan. As a result of the sale of the Company’s New York subsidiary, there will be a transfer of assets from two pension plans and two other postretirement benefit plans from the Company to Liberty. The Company does not expect the assets to be transferred to be a significant percentage of the Company’s overall pension and other postretirement benefit plans. Presented in the tables below are the fair values and asset allocations of the pension plan assets as of December 31, 2021 and 2020, respectively, by asset category: Asset Category 2022 Target Allocation Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Percentage of Plan Assets as of December 31, 2021 Cash $ 54 $ 54 $ — $ — 3 % Equity securities: 50 % U.S. large cap 217 217 — — 11 % U.S. small cap 113 113 — — 6 % International 516 7 354 155 26 % Real estate fund 141 — — 141 7 % REITs 9 — 9 — — % Fixed income securities: 50 % U.S. Treasury securities and government bonds 256 249 7 — 13 % Corporate bonds 601 — 601 — 30 % Mortgage-backed securities 9 — 9 — — % Municipal bonds 25 — 25 — 1 % Treasury futures — — — — — % Long duration bond fund 10 7 3 — 1 % Guarantee annuity contracts 40 — — 40 2 % Total 100 % $ 1,991 $ 647 $ 1,008 $ 336 100 % Asset Category 2021 Target Allocation Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Percentage of Plan Assets as of December 31, 2020 Cash $ 78 $ 78 $ — $ — 4 % Equity securities: 50 % U.S. large cap 420 420 — — 21 % U.S. small cap 124 124 — — 6 % International 367 8 169 190 18 % Real estate fund 120 — — 120 6 % REITs 7 — 7 — — % Fixed income securities: 50 % U.S. Treasury securities and government bonds 171 163 8 — 9 % Corporate bonds 594 — 594 — 30 % Mortgage-backed securities 9 — 9 — — % Municipal bonds 34 — 34 — 2 % Treasury futures 10 10 — — 1 % Long duration bond fund 10 7 3 — 1 % Guarantee annuity contracts 46 — — 46 2 % Total 100 % $ 1,990 $ 810 $ 824 $ 356 100 % Presented in the tables below are a reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3) for 2021 and 2020, respectively: Level 3 Balance as of January 1, 2021 $ 356 Actual return on assets 41 Purchases, issuances and settlements, net (61) Balance as of December 31, 2021 $ 336 Level 3 Balance as of January 1, 2020 $ 349 Actual return on assets 3 Purchases, issuances and settlements, net 4 Balance as of December 31, 2020 $ 356 The Company’s postretirement benefit plans have different levels of funded status and the assets are held under various trusts. The investments and risk mitigation strategies for the plans are tailored specifically for each trust. In setting new strategic asset mixes, consideration is given to the likelihood that the selected asset allocation will effectively fund the projected plan liabilities and meet the risk tolerance criteria of the Company. The Company periodically updates the long-term, strategic asset allocations for these plans through asset liability studies and uses various analytics to determine the optimal asset allocation. Considerations include plan liability characteristics, liquidity needs, funding requirements, expected rates of return and the distribution of returns. In 2018, the Company announced plan design changes to the medical bargaining benefit plan, which resulted in a cap on future benefits and an over funded postretirement medical benefits bargaining plan. As a result of the change in funded status, the Company decreased the investment risk in the plan and reduced its exposure to changes in interest rates by matching the assets of the plan to the projected cash flows for future benefit payments of the liability. The Company engages third-party investment managers for all invested assets. Managers are not permitted to invest outside of the asset class (e.g. fixed income, equity, alternatives) or strategy for which they have been appointed. Investment management agreements and recurring performance and attribution analysis are used as tools to ensure investment managers invest solely within the investment strategy they have been provided. Futures and options may be used to adjust portfolio duration to align with a plan’s targeted investment policy. In order to minimize asset volatility relative to the liabilities, a portion of plan assets is allocated to long duration fixed income investments that are exposed to interest rate risk. Increases in interest rates generally will result in a decline in the value of fixed income assets while reducing the present value of the liabilities. Conversely, rate decreases will increase fixed income assets, partially offsetting the related increase in the liabilities. Within equities, risk is mitigated by constructing a portfolio that is broadly diversified by geography, market capitalization, manager mandate size, investment style and process. For the postretirement medical bargaining plan, its asset structure is designed to meet the cash flows of the liabilities. This design reduces the plan’s exposure to changes in interest rates. Actual allocations to each asset class vary from target allocations due to periodic investment strategy updates, market value fluctuations, the length of time it takes to fully implement investment allocations, and the timing of benefit payments and contributions. The asset allocation is rebalanced on a quarterly basis, if necessary. Voluntary Employees’ Beneficiary Association (“VEBA”) Trust assets include the American Water Postretirement Medical Benefits Bargaining Plan, the New York Water Service Corporation Postretirement Medical Benefits Bargaining Plan, the American Water Postretirement Medical Benefits Non-Bargaining Plan, and the American Water Life Insurance Trust. Presented in the tables below are the fair values and asset allocations of the postretirement benefit plan assets as of December 31, 2021 and 2020, respectively, by asset category: Asset Category 2022 Target Allocation Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Percentage of Plan Assets as of December 31, 2021 Bargain VEBA: Cash $ 10 $ 10 $ — $ — 3 % Equity securities: 4 % U.S. large cap 18 18 — — 5 % International 1 1 — — — % Fixed income securities: 96 % U.S. Treasury securities and government bonds 363 279 84 — 91 % Long duration bond fund 5 5 — — 1 % Total bargain VEBA 100 % $ 397 $ 313 $ 84 $ — 100 % Non-bargain VEBA: Cash $ 2 $ 2 $ — $ — — Equity securities: 60 % U.S. large cap 54 54 — — 39 % International 35 35 — — 25 % Fixed income securities: 40 % Core fixed income bond fund (a) 49 — 49 — 36 % Total non-bargain VEBA 100 % $ 140 $ 91 $ 49 $ — 100 % Life VEBA: Cash $ 1 $ 1 $ — $ — 100 % Equity securities: 70 % U.S. large cap — — — — — % Fixed income securities: 30 % Core fixed income bond fund (a) — — — — — % Total life VEBA 100 % $ 1 $ 1 $ — $ — 100 % Total 100 % $ 538 $ 405 $ 133 $ — 100 % (a) Includes cash for margin requirements. Asset Category 2021 Target Allocation Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Percentage of Plan Assets as of 12/31/2020 Bargain VEBA: Cash $ 12 $ 12 $ — $ — 3 % Equity securities: 4 % U.S. large cap 14 14 — — 3 % Fixed income securities: 96 % U.S. Treasury securities and government bonds 389 308 81 — 93 % Long duration bond fund 5 5 — — 1 % Total bargain VEBA 100 % $ 420 $ 339 $ 81 $ — 100 % Non-bargain VEBA: Cash $ 1 $ 1 $ — $ — — Equity securities: 60 % U.S. large cap 51 51 — — 38 % International 33 33 — — 24 % Fixed income securities: 40 % Core fixed income bond fund (a) 50 — 50 — 38 % Total non-bargain VEBA 100 % $ 135 $ 85 $ 50 $ — 100 % Life VEBA: Equity securities: 70 % U.S. large cap $ — $ — $ — $ — — % Fixed income securities: 30 % Core fixed income bond fund (a) 1 1 — — 100 % Total life VEBA 100 % $ 1 $ 1 $ — $ — 100 % Total 100 % $ 556 $ 425 $ 131 $ — 100 % (a) Includes cash for margin requirements. Valuation Techniques Used to Determine Fair Value Cash—Cash and investments with maturities of three months or less when purchased, including certain short-term fixed-income securities, are considered cash and are included in the recurring fair value measurements hierarchy as Level 1. Equity securities—For equity securities, the trustees obtain prices from pricing services, whose prices are obtained from direct feeds from market exchanges, that the Company is able to independently corroborate. Certain equity securities are valued based on quoted prices in active markets and categorized as Level 1. Other equities, such as international securities held in the pension plan, are invested in commingled funds and/or limited partnerships. These funds are valued to reflect the plan fund’s interest in the fund based on the reported year-end net asset value. Since net asset value is not directly observable or not available on a nationally recognized securities exchange for the commingled funds, they are categorized as Level 2. For limited partnerships, the assets as a whole are categorized as Level 3 due to the fact that the partnership provides the pricing and the pricing inputs are less readily observable. In addition, the limited partnership vehicle cannot be readily traded. Fixed-income securities—The majority of U.S. Treasury securities and government bonds have been categorized as Level 1 because they trade in highly-liquid and transparent markets and their prices can be corroborated. The fair values of corporate bonds, mortgage backed securities, and certain government bonds are based on prices that reflect observable market information, such as actual trade information of similar securities. They are categorized as Level 2 because the valuations are calculated using models which utilize actively traded market data that the Company can corroborate. Exchange-traded options and futures, for which market quotations are readily available, are valued at the last reported sale price or official closing price on the primary market or exchange on which they are traded and are classified as Level 1. Real estate fund—Real estate fund is categorized as Level 3 as the fund uses significant unobservable inputs for fair value measurement and the vehicle is in the form of a limited partnership. REITs—REITs are invested in commingled funds. Commingled funds are valued to reflect the plan fund’s interest in the fund based on the reported year-end net asset value. Since the net asset value is not directly observable for the commingled funds, they are categorized as Level 2. Guaranteed annuity contracts—Guaranteed annuity contracts are categorized as Level 3 because the investments are not publicly quoted. Since these market values are determined by the provider, they are not highly observable and have been categorized as Level 3. Exchange-traded future and option positions are reported in accordance with changes in variation margins that are settled daily. Presented in the table below is a rollforward of the changes in the benefit obligation and plan assets for the two most recent years, for all plans combined: Pension Benefits Other Benefits 2021 2020 2021 2020 Change in benefit obligation: Benefit obligation as of January 1, $ 2,386 $ 2,161 $ 382 $ 374 Service cost 36 31 4 4 Interest cost 64 73 10 12 Plan participants' contributions — — 2 2 Plan amendments — — — 5 Actuarial loss (gain) (46) 233 (26) 13 Settlements (a) (6) (3) — — Gross benefits paid (140) (109) (31) (29) Federal subsidy — — 1 1 Benefit obligation as of December 31, $ 2,294 $ 2,386 $ 342 $ 382 Change in plan assets: Fair value of plan assets as of January 1, $ 1,990 $ 1,747 $ 556 $ 532 Actual return on plan assets 108 314 9 53 Employer contributions 39 41 1 (2) Plan participants' contributions — — 2 2 Settlements (a) (6) (3) — — Benefits paid (140) (109) (30) (29) Fair value of plan assets as of December 31, $ 1,991 $ 1,990 $ 538 $ 556 Funded value as of December 31, $ (303) $ (396) $ 196 $ 174 Amounts recognized on the balance sheet: Noncurrent asset $ — $ — $ 193 $ 173 Current liability (2) (2) — — Noncurrent liability (285) (388) (1) (1) (Liabilities) assets related to assets held for sale (b) (16) (6) 4 2 Net amount recognized $ (303) $ (396) $ 196 $ 174 (a) The Company paid $6 million and $3 million of lump sum payment distributions from the Company’s New York Water Service Corporation Pension Plan for the years ended December 31, 2021 and 2020, respectively. (b) These balances are related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and are included in assets held for sale and liabilities related to assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information. Presented in the table below are the components of accumulated other comprehensive income and regulatory assets that have not been recognized as components of periodic benefit costs as of December 31: Pension Benefits Other Benefits 2021 2020 2021 2020 Net actuarial loss $ 381 $ 436 $ 35 $ 49 Prior service credit (14) (16) (186) (217) Net amount recognized $ 367 $ 420 $ (151) $ (168) Regulatory assets (liabilities) $ 317 $ 366 $ (151) $ (168) Accumulated other comprehensive income 50 54 — — Total $ 367 $ 420 $ (151) $ (168) Presented in the tables below are the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with a projected obligation in excess of plan assets as of December 31, 2021 and 2020: Projected Benefit Obligation Exceeds the Fair Value of Plans' Assets 2021 2020 Projected benefit obligation $ 2,294 $ 2,386 Fair value of plan assets 1,991 1,990 Accumulated Benefit Obligation Exceeds the Fair Value of Plans' Assets 2021 2020 Accumulated benefit obligation $ 2,138 $ 2,188 Fair value of plan assets 1,991 1,990 The accumulated postretirement plan assets exceed benefit obligations for all of the Company’s other postretirement benefit plans, except for the Northern Illinois Retiree Welfare Plan. In 2006, the PPA replaced the funding requirements for defined benefit pension plans by requiring that defined benefit plans contribute to 100% of the current liability funding target over seven years. Defined benefit plans with a funding status of less than 80% of the current liability are defined as being “at risk” and additional funding requirements and benefit restrictions may apply. The PPA was effective for the 2008 plan year with short-term phase-in provisions for both the funding target and at-risk determination. The Company’s qualified defined benefit plan is currently funded above the at-risk threshold, and therefore the Company expects that the plans will not be subject to the “at risk” funding requirements of the PPA. The Company is proactively monitoring the plan’s funded status and projected contributions under the law to appropriately manage the potential impact on cash requirements. Minimum funding requirements for the qualified defined benefit pension plan are determined by government regulations and not by accounting pronouncements. The Company plans to contribute amounts at least equal to or greater than the minimum required contributions or the normal cost in 2022 to the qualified pension plans. Contributions may be in the form of cash contributions as well as available prefunding balances. Presented in the table below is information about the expected cash flows for the pension and postretirement benefit plans: Pension Benefits Other Benefits 2022 expected employer contributions: To plan trusts $ 38 $ — To plan participants 2 — Presented in the table below are the net benefits expected to be paid from the plan assets or the Company’s assets: Pension Benefits Other Benefits Expected Benefit Payments Expected Benefit Payments Expected Federal Subsidy Payments 2022 $ 130 $ 26 $ 1 2023 133 25 1 2024 134 25 1 2025 137 25 1 2026 138 25 1 2027-2031 688 113 3 Because the above amounts are net benefits, plan participants’ contributions have been excluded from the expected benefits. Accounting for pensions and other postretirement benefits requires an extensive use of assumptions about the discount rate, expected return on plan assets, the rate of future compensation increases received by the Company’s employees, mortality, turnover and medical costs. Each assumption is reviewed annually. The assumptions are selected to represent the average expected experience over time and may differ in any one year from actual experience due to changes in capital markets and the overall economy. These differences will impact the amount of pension and other postretirement benefit expense that the Company recognizes. Presented in the table below are the significant assumptions related to the pension and other postretirement benefit plans: Pension Benefits Other Benefits 2021 2020 2019 2021 2020 2019 Weighted average assumptions used to determine December 31 benefit obligations: Discount rate 2.94% 2.74% 3.44% 2.90% 2.56% 3.36% Rate of compensation increase 3.51% 3.51% 2.97% N/A N/A N/A Medical trend N/A N/A N/A graded from graded from graded from 6.00% in 2022 6.25% in 2021 6.50% in 2020 to 5.00% in 2026+ to 5.00% in 2026+ to 5.00% in 2026+ Weighted average assumptions used to determine net periodic cost: Discount rate 2.74% 3.44% 4.38% 2.56% 3.36% 4.32% Expected return on plan assets 6.50% 6.50% 6.20% 3.67% 3.68% 3.56% Rate of compensation increase 3.51% 2.97% 3.00% N/A N/A N/A Medical trend N/A N/A N/A graded from graded from graded from 6.25% in 2021 6.50% in 2020 6.75% in 2019 to 5.00% in 2026+ to 5.00% in 2026+ to 5.00% in 2026+ NOTE “N/A” in the table above means assumption is not applicable. The discount rate assumption was determined for the pension and postretirement benefit plans independently. The Company uses an approach that approximates the process of settlement of obligations tailored to the plans’ expected cash flows by matching the plans’ cash flows to the coupons and expected maturity values of individually selected bonds. Historically, for each plan, the discount rate was developed at the level equivalent rate that would produce the same present value as that using spot rates aligned with the projected benefit payments. The expected long-term rate of return on plan assets is based on historical and projected rates of return, prior to administrative and investment management fees, for current and planned asset classes in the plans’ investment portfolios. Assumed projected rates of return for each of the plans’ projected asset classes were selected after analyzing historical experience and future expectations of the returns and volatility of the various asset classes. Based on the target asset allocation for each asset class, the overall expected rate of return for the portfolio was developed, adjusted for historical and expected experience of active portfolio management results compared to the benchmark returns. The Company’s pension expense increases as the expected return on assets decreases. The Company used an expected return on plan assets of 6.50% to estimate its 2021 pension benefit costs, and an expected blended return based on weighted assets of 3.67% to estimate its 2021 other postretirement benefit costs. The Company had previously adopted a mortality table based on the Society of Actuaries RP 2014 mortality table including a generational MP-2018 projection scale. In 2020, the Company adopted the Pri-2012 base mortality table and the new MP-2020 mortality improvement scale to replace the previous assumption. In 2021, the Company utilized the Pri-2012 base mortality table and the new MP-2021 mortality improvement scale to replace the previous assumption. Presented in the table below are the components of net periodic benefit costs for the years ended December 31: 2021 2020 2019 Components of net periodic pension benefit cost: Service cost $ 36 $ 31 $ 28 Interest cost 64 73 82 Expected return on plan assets (126) (111) (91) Amortization of prior service (credit) cost (3) (3) (3) Amortization of actuarial loss 27 30 32 Settlements (a) — 1 — Net periodic pension benefit cost $ (2) $ 21 $ 48 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Current year actuarial loss (gain) $ 1 $ 12 $ (8) Amortization of actuarial loss (4) (3) (4) Total recognized in other comprehensive income (3) 9 (12) Total recognized in net periodic benefit cost and other comprehensive income $ (5) $ 30 $ 36 Components of net periodic other postretirement benefit (credit) cost: Service cost $ 4 $ 4 $ 4 Interest cost 10 12 15 Expected return on plan assets (21) (19) (18) Amortization of prior service credit (32) (34) (35) Amortization of actuarial loss — 2 3 Net periodic other postretirement benefit (credit) cost $ (39) $ (35) $ (31) (a) Due to the amount of lump sum payment distributions from the Company’s New York Water Service Corporation Pension Plan, settlement charges of less than $1 million were recorded for both years ended December 31, 2021 and 2020. In accordance with existing regulatory accounting treatment, the Company has maintained the settlement charges in regulatory assets on the Consolidated Balance Sheets. The amount is being amortized in accordance with existing regulatory practice. The Company’s policy is to recognize curtailments when the total expected future service of plan participants is reduced by greater than 10% due to an event that results in terminations and/or retirements. Cumulative gains and losses that are in excess of 10% of the greater of either the projected benefit obligation or the fair value of plan assets are amortized over the expected average remaining future service of the current active membership for the plans. Savings Plans for Employees The Company maintains 401(k) savings plans that allow employees to save for retirement on a tax-deferred basis. Employees can make contributions that are invested at their direction in one or more funds. The Company makes matching contributions based on a percentage of an employee’s contribution, subject to certain limitations. Due to the Company’s discontinuing new entrants into the defined benefit pension plan, on January 1, 2006, the Company began providing an additional 5.25% of base pay defined contribution benefit for union employees hired on or after January 1, 2001 and non-union employees hired on or after January 1, 2006. The Company’s 401(k) savings plan expenses totaled $14 million, $12 million and $12 million for 2021, 2020 and 2019, respectively. Additionally, the Company’s 5.25% of base pay defined contribution benefit expenses totaled $16 million, $15 million and $13 million for 2021, 2020 and 2019, respectively. All of the Company’s contributions are invested in one or more funds at the direction of the employees. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 17: Commitments and Contingencies Commitments have been made in connection with certain construction programs. The estimated capital expenditures required under legal and binding contractual obligations amounted to $626 million as of December 31, 2021. In December 2021, the Company authorized the contribution of $45 million to the American Water Charitable Foundation, which was subsequently paid in January 2022. The Company’s regulated subsidiaries maintain agreements with other water purveyors for the purchase of water to supplement their water supply. Presented in the table below are the future annual commitments related to minimum quantities of purchased water having non-cancelable contracts: Amount 2022 $ 71 2023 65 2024 51 2025 49 2026 49 Thereafter 507 The Company enters into agreements for the provision of services to water and wastewater facilities for the U.S. military, municipalities and other customers. See Note 5—Revenue Recognition for additional information regarding the Company’s performance obligations. Contingencies The Company is routinely involved in legal actions incident to the normal conduct of its business. As of December 31, 2021, the Company has accrued approximately $7 million of probable loss contingencies and has estimated that the maximum amount of losses associated with reasonably possible loss contingencies that can be reasonably estimated is $2 million. For certain matters, claims and actions, the Company is unable to estimate possible losses. The Company believes that damages or settlements, if any, recovered by plaintiffs in such matters, claims or actions, other than as described in this Note 17—Commitments and Contingencies, will not have a material adverse effect on the Company. West Virginia Elk River Freedom Industries Chemical Spill On June 8, 2018, the U.S. District Court for the Southern District of West Virginia granted final approval of a settlement class and global class action settlement (the “Settlement”) for all claims and potential claims by all class members (collectively, the “West Virginia Plaintiffs”) arising out of the January 2014 Freedom Industries, Inc. chemical spill in West Virginia. The effective date of the Settlement was July 16, 2018. Under the terms and conditions of the Settlement, the Company’s West Virginia subsidiary (“WVAWC”) and certain other Company affiliated entities did not admit, and will not admit, any fault or liability for any of the allegations made by the West Virginia Plaintiffs in any of the actions that were resolved. The aggregate pre-tax amount contributed by WVAWC of the $126 million portion of the Settlement with respect to the Company, net of insurance recoveries, is $19 million. As of December 31, 2021, $0.5 million of the aggregate Settlement amount of $126 million has been reflected in accrued liabilities, and $0.5 million in offsetting insurance receivables have been reflected in other current assets on the Consolidated Balance Sheets. The amount reflected in accrued liabilities as of December 31, 2021 reflects reductions in the liability and appropriate reductions to the offsetting insurance receivable reflected in other current assets, associated with payments made to the Settlement fund, the receipt of a determination by the Settlement fund’s appeal adjudicator on all remaining medical claims and the calculation of remaining attorneys’ fees and claims administration costs. The Company funded WVAWC’s contributions to the Settlement through existing sources of liquidity. Dunbar, West Virginia Water Main Break Class Action Litigation On the evening of June 23, 2015, a 36-inch pre-stressed concrete transmission water main, installed in the early 1970s, failed. The water main is part of the West Relay pumping station located in the City of Dunbar, West Virginia and owned by WVAWC. The failure of the main caused water outages and low pressure for up to approximately 25,000 WVAWC customers. In the early morning hours of June 25, 2015, crews completed a repair, but that same day, the repair developed a leak. On June 26, 2015, a second repair was completed and service was restored that day to approximately 80% of the impacted customers, and to the remaining approximately 20% by the next morning. The second repair showed signs of leaking, but the water main was usable until June 29, 2015 to allow tanks to refill. The system was reconfigured to maintain service to all but approximately 3,000 customers while a final repair was being completed safely on June 30, 2015. Water service was fully restored by July 1, 2015 to all customers affected by this event. On June 2, 2017, a complaint captioned Jeffries, et al. v. West Virginia-American Water Company was filed in West Virginia Circuit Court in Kanawha County on behalf of an alleged class of residents and business owners who lost water service or pressure as a result of the Dunbar main break. The complaint alleges breach of contract by WVAWC for failure to supply water, violation of West Virginia law regarding the sufficiency of WVAWC’s facilities and negligence by WVAWC in the design, maintenance and operation of the water system. The Jeffries plaintiffs seek unspecified alleged damages on behalf of the class for lost profits, annoyance and inconvenience, and loss of use, as well as punitive damages for willful, reckless and wanton behavior in not addressing the risk of pipe failure and a large outage. In February 2020, the Jeffries plaintiffs filed a motion seeking class certification on the issues of breach of contract and negligence, and to determine the applicability of punitive damages and a multiplier for those damages if imposed. In July 2020, the Circuit Court entered an order granting the Jeffries plaintiffs’ motion for certification of a class regarding certain liability issues but denying certification of a class to determine a punitive damages multiplier. In August 2020, WVAWC filed a Petition for Writ of Prohibition in the Supreme Court of Appeals of West Virginia seeking to vacate or remand the Circuit Court’s order certifying the issues class. On January 28, 2021, the Supreme Court of Appeals remanded the case back to the Circuit Court for further consideration in light of a decision issued in another case relating to the class certification issues raised on appeal. On July 16, 2021, oral argument was heard by the Circuit Court on the issue of addressing the Supreme Court of Appeals’ remand. This matter remains pending. The Company and WVAWC believe that WVAWC has valid, meritorious defenses to the claims raised in this class action complaint. WVAWC is vigorously defending itself against these allegations. The Company cannot currently determine the likelihood of a loss, if any, or estimate the amount of any loss or a range of such losses related to this proceeding. Chattanooga, Tennessee Water Main Break Class Action Litigation On September 12, 2019, the Company’s Tennessee subsidiary (“TAWC”), experienced a leak in a 36-inch water transmission main, which caused service fluctuations or interruptions to TAWC customers and the issuance of a boil water notice. TAWC repaired the main by early morning on September 14, 2019, and restored full water service by the afternoon of September 15, 2019, with the boil water notice lifted for all customers on September 16, 2019. On September 17, 2019, a complaint captioned Bruce, et al. v. American Water Works Company, Inc., et al. was filed in the Circuit Court of Hamilton County, Tennessee against TAWC, the Company and American Water Works Service Company, Inc. (“Service Company” and, together with TAWC and the Company, collectively, the “Tennessee-American Water Defendants”), on behalf of a proposed class of individuals or entities who lost water service or suffered monetary losses as a result of the Chattanooga incident (the “Tennessee Plaintiffs”). The complaint alleged breach of contract and negligence against the Tennessee-American Water Defendants, as well as an equitable remedy of piercing the corporate veil. In the complaint as originally filed, the Tennessee Plaintiffs were seeking an award of unspecified alleged damages for wage losses, business and economic losses, out-of-pocket expenses, loss of use and enjoyment of property and annoyance and inconvenience, as well as punitive damages, attorneys’ fees and pre- and post-judgment interest. In September 2020, the court dismissed all of the Tennessee Plaintiffs’ claims in their complaint, except for the breach of contract claims against TAWC, which remain pending. In October 2020, TAWC answered the complaint, and the parties have been engaging in discovery. The court has entered an agreed scheduling order, which sets a hearing in October 2022 to address the question of class certification. TAWC and the Company believe that TAWC has meritorious defenses to the claims raised in this class action complaint, and TAWC is vigorously defending itself against these allegations. The Company cannot currently determine the likelihood of a loss, if any, or estimate the amount of any loss or a range of such losses related to this proceeding. Alternative Water Supply in Lieu of Carmel River Diversions Compliance with Orders to Reduce Carmel River Diversions—Monterey Peninsula Water Supply Project Under a 2009 order (the “2009 Order”) of the State Water Resources Control Board (the “SWRCB”), the Company’s California subsidiary (“Cal Am”) is required to decrease significantly its yearly diversions of water from the Carmel River according to a set reduction schedule. In 2016, the SWRCB issued an order (the 2016 Order”) approving a deadline of December 31, 2021 for Cal Am’s compliance with these prior orders. Cal Am is currently involved in developing the Monterey Peninsula Water Supply Project (the “Water Supply Project”), which includes the construction of a desalination plant, to be owned by Cal Am, and the construction of wells that would supply water to the desalination plant. In addition, the Water Supply Project also includes Cal Am’s purchase of water from a groundwater replenishment project (the “GWR Project”) between Monterey One Water and the Monterey Peninsula Water Management District (the “MPWMD”). The Water Supply Project is intended, among other things, to fulfill Cal Am’s obligations under the 2009 Order and the 2016 Order. Cal Am’s ability to move forward on the Water Supply Project is subject to administrative review by the CPUC and other government agencies, obtaining necessary permits, and intervention from other parties. In September 2016, the CPUC unanimously approved a final decision to authorize Cal Am to enter into a water purchase agreement for the GWR Project and to construct a pipeline and pump station facilities and recover up to $50 million in associated incurred costs plus AFUDC, subject to meeting certain criteria. In September 2018, the CPUC unanimously approved another final decision finding that the Water Supply Project meets the CPUC’s requirements for a certificate of public convenience and necessity and an additional procedural phase was not necessary to consider alternative projects. The CPUC’s 2018 decision concludes that the Water Supply Project is the best project to address estimated future water demands in Monterey, and, in addition to the cost recovery approved in its 2016 decision, adopts Cal Am’s cost estimates for the Water Supply Project, which amounted to an aggregate of $279 million plus AFUDC at a rate representative of Cal Am’s actual financing costs. The 2018 final decision specifies the procedures for recovery of all of Cal Am’s prudently incurred costs associated with the Water Supply Project upon its completion, subject to the frameworks included in the final decision related to cost caps, operation and maintenance costs, financing, ratemaking and contingency matters. The reasonableness of the Water Supply Project costs will be reviewed by the CPUC when Cal Am seeks cost recovery for the Water Supply Project. Cal Am has incurred $186 million in aggregate costs as of December 31, 2021 related to the Water Supply Project, which includes $47 million in AFUDC. In September 2021, Cal Am, Monterey One Water and the MPWMD reached an agreement on Cal Am’s purchase of additional water from an expansion to the GWR Project, which is not expected to produce additional water until 2024 at the earliest. The amended and restated water purchase agreement for the GWR Project expansion is subject to review and approval of the CPUC, and on November 29, 2021, Cal Am filed an application with the CPUC seeking review and approval of the amended and restated water purchase agreement. Cal Am is also requesting rate base treatment of the additional capital investment for certain Cal Am facilities required to maximize the water supply from the expansion to the GWR Project and a related Aquifer Storage and Recovery Project, totaling approximately $81 million. This amount is in addition to, and consistent in regulatory treatment with, the prior $50 million of cost recovery for facilities associated with the original water purchase agreement, which was approved by the CPUC in its 2016 final decision . While Cal Am believes that its expenditures to date have been prudent and necessary to comply with the 2009 Order and the 2016 Order, as well as the CPUC’s 2016 and 2018 final decisions, Cal Am cannot currently predict its ability to recover all of its costs and expenses associated with the Water Supply Project and there can be no assurance that Cal Am will be able to recover all of such costs and expenses in excess of the $50 million in construction costs previously approved by the CPUC in its 2016 final decision. Coastal Development Permit Application In June 2018, Cal Am submitted a coastal development permit application to the City of Marina (the “City”) for those project components of the Water Supply Project located within the City’s coastal zone. Members of the City’s Planning Commission, as well as City councilpersons, have publicly expressed opposition to the Water Supply Project. In May 2019, the City issued a notice of final local action based upon the denial by the Planning Commission of Cal Am’s coastal development permit application. Thereafter, Cal Am appealed this decision to the California Coastal Commission (the “Coastal Commission”), as permitted under the City’s code and the California Coastal Act. At the same time, Cal Am submitted an application to the Coastal Commission for a coastal development permit for those project components located within the Coastal Commission’s original jurisdiction. In October 2019, staff of the Coastal Commission issued a report recommending a denial of Cal Am’s application for a coastal development permit with respect to the Water Supply Project, largely based on a memorandum prepared by the general manager of the MPWMD that contradicted findings made by the CPUC in its final decision approving the Water Supply Project. In November 2019, discussions between staffs of the Coastal Commission and the CPUC took place regarding the Coastal Commission staff recommendation, at which time the CPUC raised questions about the Coastal Commission staff’s findings on water supply and demand, groundwater impacts and the viability of a project that the Coastal Commission staff believes may be a possible alternative to the Water Supply Project. In August 2020, the staff of the Coastal Commission released a report again recommending denial of Cal Am’s application for a coastal development permit. Although the report concluded that the Water Supply Project would have a negligible impact on groundwater resources, the report also concluded it would impact other coastal resources, such as environmentally sensitive habitat areas and wetlands, and that the Coastal Commission staff believes that a feasible alternative project exists that would avoid those impacts. The staff’s report also noted disproportionate impacts to communities of concern. In September 2020, Cal Am withdrew its original jurisdiction application to allow additional time to address the Coastal Commission staff’s environmental justice concerns. The withdrawal of the original jurisdiction application did not impact Cal Am’s appeal of the City’s denial, which remains pending before the Coastal Commission. Cal Am refiled the original jurisdiction application in November 2020. In December 2020, the Coastal Commission sent to Cal Am a notice of incomplete application, identifying certain additional information needed to consider the application complete. In March 2021, Cal Am provided responses to the Coastal Commission’s notice of incomplete application. On June 18, 2021, the Coastal Commission responded, acknowledging the responses and requesting certain additional information before the application could be considered complete. Cal Am responded with the requested additional information on January 11, 2022, and on February 8, 2022, the Coastal Commission requested additional information. The original jurisdiction application remains pending. Cal Am continues to work constructively with all appropriate agencies to provide necessary information in connection with obtaining required approvals for the Water Supply Project. However, there can be no assurance that the Water Supply Project in its current configuration will be completed on a timely basis, if ever. Beginning in January 2022, Cal Am expects to be able to comply with the diversion reduction requirements contained in the 2016 Order, but continued compliance with the diversion reduction requirements for 2023 and future years will depend on successful development of alternate water supply sources sufficient to meet customer demand. The 2009 Order and the 2016 Order remain in effect until Cal Am certifies to the SWRCB, and the SWRCB concurs, that Cal Am has obtained a permanent supply of water to substitute for past unauthorized Carmel River diversions. While the Company cannot currently predict the likelihood or result of any adverse outcome associated with these matters, further attempts to comply with the 2009 Order and the 2016 Order may result in material additional costs and obligations to Cal Am, including fines and penalties against Cal Am in the event of noncompliance with the 2009 Order and the 2016 Order. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Note 18: Earnings per Common Share Presented in the table below is a reconciliation of the numerator and denominator for the basic and diluted earnings per share (“EPS”) calculations for the years ended December 31: 2021 2020 2019 Numerator: Net income attributable to common shareholders $ 1,263 $ 709 $ 621 Denominator: Weighted average common shares outstanding—Basic 182 181 181 Effect of dilutive common stock equivalents — 1 — Weighted average common shares outstanding—Diluted 182 182 181 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | Note 19: Fair Value of Financial Information The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Current assets and current liabilities—The carrying amounts reported on the Consolidated Balance Sheets for current assets and current liabilities, including revolving credit debt, due to the short-term maturities and variable interest rates, approximate their fair values. Seller promissory note from the sale of HOS — The carrying amount reported on the Consolidated Balance Sheets for the seller promissory note from the sale of HOS approximates fair value. Preferred stock with mandatory redemption requirements and long-term debt—The fair values of preferred stock with mandatory redemption requirements and long-term debt are categorized within the fair value hierarchy based on the inputs that are used to value each instrument. The fair value of long-term debt classified as Level 1 is calculated using quoted prices in active markets. Level 2 instruments are valued using observable inputs and Level 3 instruments are valued using observable and unobservable inputs. Presented in the tables below are the carrying amounts, including fair value adjustments previously recognized in acquisition purchase accounting, and the fair values of the Company’s financial instruments: As of December 31, 2021 Carrying Amount At Fair Value L e vel 1 Level 2 Level 3 Total Preferred stock with mandatory redemption requirements $ 4 $ — $ — $ 6 $ 6 Long-term debt (excluding finance lease obligations) 10,396 10,121 60 1,637 11,818 As of December 31, 2020 Carrying Amount At Fair Value L e vel 1 Level 2 Level 3 Total Preferred stock with mandatory redemption requirements $ 5 $ — $ — $ 7 $ 7 Long-term debt (excluding finance lease obligations) 9,656 9,639 415 1,753 11,807 Fair Value Measurements To increase consistency and comparability in fair value measurements, GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows: Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date. Financial assets and liabilities utilizing Level 1 inputs include active exchange-traded equity securities, exchange-based derivatives, mutual funds and money market funds. Level 2—Inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange-based derivatives, commingled investment funds not subject to purchase and sale restrictions and fair-value hedges. Level 3—Unobservable inputs, such as internally-developed pricing models for the asset or liability due to little or no market activity for the asset or liability. Financial assets and liabilities utilizing Level 3 inputs include infrequently-traded non-exchange-based derivatives and commingled investment funds subject to purchase and sale restrictions. Recurring Fair Value Measurements Presented in the tables below are assets and liabilities measured and recorded at fair value on a recurring basis and their level within the fair value hierarchy: As of December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Restricted funds $ 21 $ — $ — $ 21 Rabbi trust investments 23 — — 23 Deposits 27 — — 27 Other investments 17 — — 17 Contingent cash payment from the sale of HOS — — 72 72 Total assets 88 — 72 160 Liabilities: Deferred compensation obligations 27 — — 27 Total liabilities 27 — — 27 Total assets $ 61 $ — $ 72 $ 133 As of December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Restricted funds $ 29 $ — $ — $ 29 Rabbi trust investments 19 — — 19 Deposits 4 — — 4 Other investments 11 — — 11 Total assets 63 — — 63 Liabilities: Deferred compensation obligations 24 — — 24 Total liabilities 24 — — 24 Total assets $ 39 $ — $ — $ 39 Restricted funds—The Company’s restricted funds primarily represent proceeds received from financings for the construction and capital improvement of facilities and from customers for future services under operation, maintenance and repair projects. Rabbi trust investments—The Company’s rabbi trust investments consist of equity and index funds from which supplemental executive retirement plan benefits and deferred compensation obligations can be paid. The Company includes these assets in other long-term assets on the Consolidated Balance Sheets. Deposits—Deposits include escrow funds and certain other deposits held in trust. The Company includes cash deposits in other current assets on the Consolidated Balance Sheets. Deferred compensation obligations—The Company’s deferred compensation plans allow participants to defer certain cash compensation into notional investment accounts. The Company includes such plans in other long-term liabilities on the Consolidated Balance Sheets. The value of the Company’s deferred compensation obligations is based on the market value of the participants’ notional investment accounts. The notional investments are comprised primarily of mutual funds, which are based on observable market prices. Mark-to-market derivative assets and liabilities — The Company employs derivative financial instruments in the form of variable-to-fixed interest rate swaps and treasury lock agreements, classified as economic hedges and cash flow hedges, respectively, in order to fix the interest cost on existing or forecasted debt. The Company may use fixed-to-floating interest rate swaps, typically designated as fair-value hedges, to achieve a targeted level of variable-rate debt as a percentage of total debt. The Company uses a calculation of future cash inflows and estimated future outflows, which are discounted, to determine the current fair value. Additional inputs to the present value calculation include the contract terms, counterparty credit risk, interest rates and market volatility. The Company had no significant mark-to-market derivatives outstanding as of December 31, 2021. Other investments—Other investments primarily represent money market funds used for active employee benefits. The Company includes other investments in other current assets on the Consolidated Balance Sheets. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 20: Leases The Company has operating and finance leases involving real property, including facilities, utility assets, vehicles, and equipment. Certain operating leases have renewal options ranging from one The Company participates in a number of arrangements with various public entities (“Partners”) in West Virginia. Under these arrangements, the Company transferred a portion of its utility plant to the Partners in exchange for an equal principal amount of Industrial Development Bonds (“IDBs”) issued by the Partners under the Industrial Development and Commercial Development Bond Act. The Company leased back the utility plant under agreements for a period of 30 to 40 years. The Company has recorded these agreements as finance leases in property, plant and equipment The Company also enters into O&M agreements with the Partners. The Company pays an annual fee for use of the Partners’ assets in performing under the O&M agreements. The O&M agreements are recorded as operating leases, and future annual use fees of $4 million in 2022 through 2026, and $48 million thereafter, are included in operating lease ROU assets and operating lease liabilities on the Consolidated Balance Sheets. Rental expenses under operating and finance leases were $13 million, $14 million and $16 million for the years ended December 31, 2021, 2020 and 2019, respectively. For the year ended December 31, 2021, cash paid for amounts in lease liabilities, which includes operating and financing cash flows from operating and finance leases, was $13 million. For the year ended December 31, 2021, ROU assets obtained in exchange for new operating lease liabilities was $11 million. As of December 31, 2021, the weighted-average remaining lease term of the finance lease and operating leases were four years and 18 years, respectively, and the weighted-average discount rate of the finance lease and operating leases were 12% and 4%, respectively. The future maturities of lease liabilities at December 31, 2021 are $12 million in 2022, $9 million in 2023, $9 million in 2024, $8 million in 2025, $7 million in 2026 and $89 million thereafter. At December 31, 2021 imputed interest was $45 million. |
Leases | Note 20: Leases The Company has operating and finance leases involving real property, including facilities, utility assets, vehicles, and equipment. Certain operating leases have renewal options ranging from one The Company participates in a number of arrangements with various public entities (“Partners”) in West Virginia. Under these arrangements, the Company transferred a portion of its utility plant to the Partners in exchange for an equal principal amount of Industrial Development Bonds (“IDBs”) issued by the Partners under the Industrial Development and Commercial Development Bond Act. The Company leased back the utility plant under agreements for a period of 30 to 40 years. The Company has recorded these agreements as finance leases in property, plant and equipment The Company also enters into O&M agreements with the Partners. The Company pays an annual fee for use of the Partners’ assets in performing under the O&M agreements. The O&M agreements are recorded as operating leases, and future annual use fees of $4 million in 2022 through 2026, and $48 million thereafter, are included in operating lease ROU assets and operating lease liabilities on the Consolidated Balance Sheets. Rental expenses under operating and finance leases were $13 million, $14 million and $16 million for the years ended December 31, 2021, 2020 and 2019, respectively. For the year ended December 31, 2021, cash paid for amounts in lease liabilities, which includes operating and financing cash flows from operating and finance leases, was $13 million. For the year ended December 31, 2021, ROU assets obtained in exchange for new operating lease liabilities was $11 million. As of December 31, 2021, the weighted-average remaining lease term of the finance lease and operating leases were four years and 18 years, respectively, and the weighted-average discount rate of the finance lease and operating leases were 12% and 4%, respectively. The future maturities of lease liabilities at December 31, 2021 are $12 million in 2022, $9 million in 2023, $9 million in 2024, $8 million in 2025, $7 million in 2026 and $89 million thereafter. At December 31, 2021 imputed interest was $45 million. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Note 21: Segment Information The Company’s operating segments are comprised of the revenue-generating components of its businesses for which separate financial information is internally produced and regularly used by management to make operating decisions, assess performance and allocate resources. The Company operates its businesses primarily through one reportable segment, the Regulated Businesses segment. The Company also operates market-based businesses that, individually, do not meet the criteria of a reportable segment in accordance with GAAP, and are collectively presented as the Market-Based Businesses. The Regulated Businesses segment is the largest component of the Company’s business and includes subsidiaries that provide water and wastewater services to customers in 14 states. The Company’s primary Market-Based Businesses include MSG, which enters into long-term contracts with the U.S. government to provide water and wastewater services on various military installations, and the Company’s former HOS business, which was sold in the fourth quarter of 2021, and previously provided various warranty protection programs and other home services to residential customers. The accounting policies of the segments are the same as those described in Note 2—Significant Accounting Policies. The Regulated Businesses segment and Market-Based Businesses include intercompany costs that are allocated by Service Company and intercompany interest that is charged by AWCC, both of which are eliminated to reconcile to the Consolidated Statements of Operations. Inter-segment revenues include the sale of water from a regulated subsidiary to market-based subsidiaries, leased office space, and furniture and equipment provided by the market-based subsidiaries to regulated subsidiaries. “Other” includes corporate costs that are not allocated to the Company’s operating segments, eliminations of inter-segment transactions, fair value adjustments, and associated income and deductions related to the acquisitions that have not been allocated to the operating segments for evaluation of performance and allocation of resource purposes. The adjustments related to the acquisitions are reported in Other as they are excluded from segment performance measures evaluated by management. Presented in the tables below is summarized segment information as of and for the years ended December 31: 2021 Regulated Market-Based Businesses Other Consolidated Operating revenues $ 3,384 $ 563 $ (17) $ 3,930 Depreciation and amortization 601 22 13 636 Total operating expenses, net 2,227 510 (3) 2,734 Interest expense (290) (7) (106) (403) Interest income 1 3 — 4 Gain or (loss) on sale of businesses (1) 748 — 747 Income before income taxes 962 798 (120) 1,640 Provision for income taxes 172 248 (43) 377 Net income attributable to common shareholders 789 550 (76) 1,263 Total assets 23,365 514 2,196 26,075 Cash paid for capital expenditures 1,747 8 9 1,764 2020 Regulated Market-Based Businesses Other Consolidated Operating revenues $ 3,255 $ 540 $ (18) $ 3,777 Depreciation and amortization 562 26 16 604 Total operating expenses, net 2,102 421 6 2,529 Interest expense (293) (7) (97) (397) Interest income 2 8 (8) 2 Income before income taxes 932 120 (128) 924 Provision for income taxes 217 29 (31) 215 Net income attributable to common shareholders 715 91 (97) 709 Total assets 22,357 891 1,518 24,766 Cash paid for capital expenditures 1,804 10 8 1,822 2019 Regulated Market-Based Businesses Other Consolidated Operating revenues $ 3,094 $ 539 $ (23) $ 3,610 Depreciation and amortization 529 37 16 582 Total operating expenses, net 1,964 436 (4) 2,396 Interest expense (299) (8) (79) (386) Interest income 4 13 (13) 4 Income before income taxes 869 66 (102) 833 Provision for income taxes 215 20 (23) 212 Net income attributable to common shareholders 654 46 (79) 621 Total assets 20,318 1,008 1,356 22,682 Cash paid for capital expenditures 1,627 13 14 1,654 |
Unaudited Quarterly Data
Unaudited Quarterly Data | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Data [Abstract] | |
Unaudited Quarterly Data | Note 22: Unaudited Quarterly Data Presented in the tables below are supplemental, unaudited, consolidated, quarterly financial data for each of the four quarters in the years ended December 31, 2021 and 2020, respectively. The operating results for any quarter are not indicative of results that may be expected for a full year or any future periods. 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Operating revenues $ 888 $ 999 $ 1,092 $ 951 Operating income 229 330 417 220 Net income attributable to common shareholders 133 207 278 645 Basic earnings per share: (a) Net income attributable to common shareholders $ 0.73 $ 1.14 $ 1.53 $ 3.55 Diluted earnings per share: Net income attributable to common shareholders 0.73 1.14 1.53 3.55 (a) Amounts may not sum due to rounding. 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Operating revenues $ 844 $ 931 $ 1,079 $ 923 Operating income 239 313 433 263 Net income attributable to common shareholders 124 176 264 145 Basic earnings per share: (a) Net income attributable to common shareholders $ 0.69 $ 0.97 $ 1.46 $ 0.80 Diluted earnings per share: Net income attributable to common shareholders 0.68 0.97 1.46 0.80 (a) Amounts may not sum due to rounding. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Regulation | RegulationThe Company’s regulated utilities are subject to regulation by multiple state utility commissions or other entities engaged in utility regulation, collectively referred to as Public Utility Commissions (“PUCs”). As such, the Company follows authoritative accounting principles required for rate regulated utilities, which requires the effects of rate regulation to be reflected in the Company’s Consolidated Financial Statements. PUCs generally authorize revenue at levels intended to recover the estimated costs of providing service, plus a return on net investments, or rate base. Regulators may also approve accounting treatments, long-term financing programs and cost of capital, operation and maintenance (“O&M”) expenses, capital expenditures, taxes, affiliated transactions and relationships, reorganizations, mergers, acquisitions and dispositions, along with imposing certain penalties or granting certain incentives. Due to timing and other differences in the collection of a regulated utility’s revenues, these authoritative accounting principles allow a cost that would otherwise be charged as an expense by a non-regulated entity, to be deferred as a regulatory asset if it is probable that such cost is recoverable through future rates. Conversely, these principles also require the creation of a regulatory liability for amounts collected in rates to recover costs expected to be incurred in the future, or amounts collected in excess of costs incurred and are refundable to customers. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires that management make estimates, assumptions and judgments that could affect the Company’s financial condition, results of operations and cash flows. Actual results could differ from these estimates, assumptions and judgments. The Company considers its critical accounting estimates to include (i) the application of regulatory accounting principles and the related determination and estimation of regulatory assets and liabilities, (ii) revenue recognition and the estimates used in the calculation of unbilled revenue, (iii) accounting for income taxes, (iv) benefit plan assumptions and (v) the estimates and judgments used in determining loss contingencies. The Company’s critical accounting estimates that are particularly sensitive to change in the near term are amounts reported for regulatory assets and liabilities, income taxes, benefit plan assumptions and contingency-related obligations. |
Principles of Consolidation | Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of American Water and all of its subsidiaries in which a controlling interest is maintained after the elimination of intercompany balances and transactions. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consists primarily of utility plant utilized by the Company’s regulated utilities. Additions to utility plant and replacement of retirement units of utility plant are capitalized and include costs such as materials, direct labor, payroll taxes and benefits, indirect items such as engineering and supervision, transportation and an allowance for funds used during construction (“AFUDC”). Costs for repair, maintenance and minor replacements are charged to O&M expense as incurred. The cost of utility plant is depreciated using the straight-line average remaining life, group method. The Company’s regulated utilities record depreciation in conformity with amounts approved by PUCs, after regulatory review of the information the Company submits to support its estimates of the assets’ remaining useful lives. Nonutility property consists primarily of buildings and equipment utilized by the Company’s Market-Based Businesses and for internal operations. This property is stated at cost, net of accumulated depreciation, which is calculated using the straight-line method over the useful lives of the assets. When units of property, plant and equipment are replaced, retired or abandoned, the carrying value is credited against the asset and charged to accumulated 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 recorded. In some cases, the Company recovers retirement costs through rates during the life of the associated asset and before the costs are incurred. These amounts result in a regulatory liability being reported based on the amounts previously recovered through customer rates, until the costs to retire those assets are incurred. |
Cash and Cash Equivalents, and Restricted Funds | Cash and Cash Equivalents, and Restricted Funds Substantially all cash is invested in interest-bearing accounts. All highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents. Restricted funds consist primarily of proceeds from financings for the construction and capital improvement of facilities, and deposits for future services under O&M projects. Proceeds are held in escrow or interest-bearing accounts until the designated expenditures are incurred. Restricted funds are classified on the Consolidated Balance Sheets as either current or long-term based upon the intended use of the funds. |
Accounts Receivable and Unbilled Revenues | Accounts Receivable and Unbilled Revenues Accounts receivable include regulated utility customer accounts receivable, which represent amounts billed to water and wastewater customers generally on a monthly basis. Credit is extended based on the guidelines of the applicable PUCs and collateral is generally not required. Also included are market-based trade accounts receivable and nonutility customer receivables of the regulated subsidiaries. Unbilled revenues are accrued when service has been provided but has not been billed to customers and when costs exceed billings on market-based construction contracts. |
Allowance for Uncollectible Accounts | Allowance for Uncollectible AccountsAllowances for uncollectible accounts are maintained for estimated probable losses resulting from the Company’s inability to collect receivables from customers. Accounts that are outstanding longer than the payment terms are considered past due. A number of factors are considered in determining the allowance for uncollectible accounts, including the length of time receivables are past due, previous loss history, current economic and societal conditions and reasonable and supportable forecasts that affect the collectability of receivables from customers. The Company generally writes off accounts when they become uncollectible or are over a certain number of days outstanding. An increase in the allowance for uncollectible accounts for the periods ending December 31, 2021 and 2020 reflects the impacts from the COVID-19 pandemic, including an increase in uncollectible accounts expense and a reduction in amounts written off due to shutoff moratoria in place across the Company’s subsidiaries. |
Materials and Supplies | Materials and Supplies Materials and supplies are stated at the lower of cost or net realizable value. Cost is determined using the average cost method. |
Seller Promissory Note | Seller Promissory NoteThe Company’s seller promissory note is accounted for under ASC 310, Receivables, and is classified as held for investment and accounted for at amortized cost at the present value of consideration received for the sale of its HOS business. Interest income from the seller promissory note is accrued based on the principal amount outstanding and earned over the contractual life of the loan. |
Leases | Leases The Company has operating and finance leases involving real property, including facilities, utility assets, vehicles, and equipment. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, accrued liabilities and operating lease liabilities on the Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, accrued liabilities and other long-term liabilities on the Consolidated Balance Sheets. The Company has made an accounting policy election not to include operating leases with a lease term of twelve months or less. ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are generally recognized at the commencement date based on the present value of discounted lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of discounted lease payments. The implicit rate is used when readily determinable. ROU assets also include any upfront lease payments and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-area maintenance costs), which are generally accounted for separately; however, the Company accounts for the lease and non-lease components as a single lease component for certain leases. Certain lease agreements include variable rental payments adjusted periodically for inflation. Additionally, the Company applies a portfolio approach to effectively account for the ROU assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Leases | Leases The Company has operating and finance leases involving real property, including facilities, utility assets, vehicles, and equipment. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, accrued liabilities and operating lease liabilities on the Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, accrued liabilities and other long-term liabilities on the Consolidated Balance Sheets. The Company has made an accounting policy election not to include operating leases with a lease term of twelve months or less. ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are generally recognized at the commencement date based on the present value of discounted lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of discounted lease payments. The implicit rate is used when readily determinable. ROU assets also include any upfront lease payments and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-area maintenance costs), which are generally accounted for separately; however, the Company accounts for the lease and non-lease components as a single lease component for certain leases. Certain lease agreements include variable rental payments adjusted periodically for inflation. Additionally, the Company applies a portfolio approach to effectively account for the ROU assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price paid over the estimated fair value of the assets acquired and liabilities assumed in the acquisition of a business. Goodwill is not amortized and must be allocated at the reporting unit level, which is defined as an operating segment or one level below, and tested for impairment at least annually, or more frequently if an event occurs or circumstances change that would more likely than not, reduce the fair value of a reporting unit below its carrying value. The Company’s goodwill is primarily associated with the acquisition of American Water by an affiliate of the Company’s previous owner in 2003 and has been allocated to reporting units based on the fair values at the date of the acquisitions. For purposes of testing goodwill for impairment, the reporting units in the Regulated Businesses segment are aggregated into a single reporting unit. The goodwill of the Market-Based Businesses is comprised of the MSG reporting unit. The Company’s annual impairment testing is performed as of November 30 of each year, in conjunction with the completion of the Company’s annual business plan. The Company assesses qualitative factors to determine whether quantitative testing is necessary. If it is determined, based upon qualitative factors, that the estimated fair value of a reporting unit is more likely than not, greater than its carrying value, no further testing is required. If the Company bypasses the qualitative assessment or performs the qualitative assessment and determines that the estimated fair value of a reporting unit is more likely than not, less than its carrying value, a quantitative, fair value-based assessment is performed. This quantitative testing compares the estimated fair value of the reporting unit to its respective net carrying value, including goodwill, on the measurement date. An impairment loss will be recognized in the amount equal to the excess of the reporting unit’s carrying value compared to its estimated fair value, limited to the total amount of goodwill allocated to that reporting unit. Application of goodwill impairment testing requires management judgment, including the identification of reporting units and determining the fair value of reporting units. Management estimates fair value using a discounted cash flow analysis. Significant assumptions used in these fair value estimations include, but are not limited to, forecasts of future operating results, discount and growth rates. |
Intangible Assets | Intangible AssetsIntangible assets consisted primarily of finite-lived customer relationships associated with the acquisition of Pivotal Home Solutions in June 2018. Finite-lived intangible assets were initially measured at their estimated fair values and were amortized over their estimated useful lives based on the pattern in which the economic benefits of the intangible assets were consumed or otherwise used. |
Impairments of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets include property, plant and equipment, goodwill, intangible assets and long-term investments. The Company evaluates long-lived assets for impairment when circumstances indicate the carrying value of those assets may not be recoverable. When such indicators arise, the Company estimates the fair value of the long-lived asset from future cash flows expected to result from its use and, if applicable, the eventual disposition of the asset, comparing the estimated fair value to the carrying value of the asset. An impairment loss will be recognized in the amount equal to the excess of the long-lived asset’s carrying value compared to its estimated fair value. The long-lived assets of the Company’s regulated utilities are grouped on a separate entity basis for impairment testing, as they are integrated state-wide operations that do not have the option to curtail service and generally have uniform tariffs. A regulatory asset is charged to earnings if and when future recovery in rates of that asset is no longer probable. The Company believes the assumptions and other considerations used to value long-lived assets to be appropriate, however, if actual experience differs from the assumptions and considerations used in its estimates, the resulting change could have a material adverse impact on the Consolidated Financial Statements. |
Advances for Construction and Contributions in Aid of Construction | Advances for Construction and Contributions in Aid of Construction Regulated utility subsidiaries may receive advances for construction and contributions in aid of construction from customers, home builders and real estate developers to fund construction necessary to extend service to new areas. Advances are refundable for limited periods of time as new customers begin to receive service or other contractual obligations are fulfilled. Included in other current liabilities as of December 31, 2021 and 2020 on the Consolidated Balance Sheets are estimated refunds of $23 million and $23 million, respectively. Those amounts represent expected refunds during the next 12-month period. Advances that are no longer refundable are reclassified to contributions. Contributions are permanent collections of plant assets or cash for a particular construction project. For ratemaking purposes, the amount of such contributions generally serves as a rate base reduction since the contributions represent non-investor supplied funds. |
Revenues Recognition | Revenue Recognition Under Accounting Standards Codification Topic 606, Revenue From Contracts With Customers, and all related amendments (collectively, “ASC 606”), a performance obligation is a promise within a contract to transfer a distinct good or service, or a series of distinct goods and services, to a customer. Revenue is recognized when performance obligations are satisfied and the customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for goods or services. Under ASC 606, a contract’s transaction price is allocated to each distinct performance obligation. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identifies the contracts with a customer; (ii) identifies the performance obligations within the contract, including whether any performance obligations are distinct and capable of being distinct in the context of the contract; (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligations in the contract; and (v) recognizes revenue when, or as, the Company satisfies each performance obligation. The Company’s revenues from contracts with customers are discussed below. Customer payments for contracts are generally due within 30 days of billing and none of the contracts with customers have payment terms that exceed one year; therefore, the Company elected to apply the significant financing component practical expedient and no amount of consideration has been allocated as a financing component. Regulated Businesses Revenue Revenue from the Company’s Regulated Businesses is generated primarily from water and wastewater services delivered to customers. These contracts contain a single performance obligation, the delivery of water and/or wastewater services, as the promise to transfer the individual good or service is not separately identifiable from other promises within the contracts and, therefore, is not distinct. Revenues are recognized over time, as services are provided. There are generally no significant financing components or variable consideration. Revenues include amounts billed to customers on a cycle basis and unbilled amounts calculated based on estimated usage from the date of the meter reading associated with the latest customer bill, to the end of the accounting period. The amounts that the Company has a right to invoice are determined by each customer’s actual usage, an indicator that the invoice amount corresponds directly to the value transferred to the customer. The Company also recognizes revenue when it is probable that future recovery of previously incurred costs or future refunds that are to be credited to customers will occur through the ratemaking process. Market-Based Businesses Revenue The Company has long-term, fixed fee contracts to operate and maintain water and wastewater systems for the U.S. government on various military installations and facilities owned by municipal customers. Billing and revenue recognition for the fixed fee revenues occurs ratably over the term of the contract, as customers simultaneously receive and consume the benefits provided by the Company. Additionally, these contracts allow the Company to make capital improvements to underlying infrastructure, which are initiated through separate modifications or amendments to the original contract, whereby stand-alone, fixed pricing is separately stated for each improvement. The Company has determined that these capital improvements are separate performance obligations, with revenue recognized over time based on performance completed at the end of each reporting period. Losses on contracts are recognized during the period in which the losses first become probable and estimable. Revenues recognized during the period in excess of billings on construction contracts are recorded as unbilled revenues, with billings in excess of revenues recorded as other current liabilities until the recognition criteria are met. Changes in contract performance and related estimated contract profitability may result in revisions to costs and revenues and are recognized in the period in which revisions are determined. See Note 5—Revenue Recognition for additional information. Through various warranty protection programs and other home services, the Company previously provided fixed fee services to residential customers for interior and exterior water and sewer lines, interior electric and gas lines, heating and cooling systems, water heaters and other home appliances, as well as power surge protection and other related services through its former HOS business. Most of the contracts had a one-year term and each service was a separate performance obligation, satisfied over time, as the customers simultaneously received and consumed the benefits provided from the service. Customers were obligated to pay for the protection programs ratably over 12 months or via a one-time, annual fee, with revenues recognized ratably over time for those services. Advances from customers were deferred until the performance obligation was satisfied. |
Income Taxes | Income Taxes The Company and its subsidiaries participate in a consolidated federal income tax return for U.S. tax purposes. Members of the consolidated group are charged with the amount of federal income tax expense determined as if they filed separate returns. Certain income and expense items are accounted for in different time periods for financial reporting than for income tax reporting purposes. The Company provides deferred income taxes on the difference between the tax basis of assets and liabilities and the amounts at which they are carried in the financial statements. These deferred income taxes are based on the enacted tax rates expected to be in effect when these temporary differences are projected to reverse. In addition, the regulated utility subsidiaries recognize regulatory assets and liabilities for the effect on revenues expected to be realized as the tax effects of temporary differences, previously flowed through to customers, reverse. Investment tax credits have been deferred by the regulated utility subsidiaries and are being amortized to income over the average estimated service lives of the related assets. |
Allowance for Funds Used During Construction | Allowance for Funds Used During ConstructionAFUDC is a non-cash credit to income with a corresponding charge to utility plant that represents the cost of borrowed funds or a return on equity funds devoted to plant under construction. The regulated utility subsidiaries record AFUDC to the extent permitted by the PUCs. The portion of AFUDC attributable to borrowed funds is shown as a reduction of interest, net on the Consolidated Statements of Operations. Any portion of AFUDC attributable to equity funds would be included in other, net on the Consolidated Statements of Operations. |
Environmental Costs | Environmental CostsThe Company’s water and wastewater operations and the operations of its Market-Based Businesses are subject to U.S. federal, state, local and foreign requirements relating to environmental protection, and as such, the Company periodically becomes subject to environmental claims in the normal course of business. Environmental expenditures that relate to current operations or provide a future benefit are expensed or capitalized as appropriate. Remediation costs that relate to an existing condition caused by past operations are accrued, on an undiscounted basis, when it is probable that these costs will be incurred and can be reasonably estimated. A conservation agreement entered into by a subsidiary of the Company with the National Oceanic and Atmospheric Administration in 2010 and amended in 2017 required the subsidiary to, among other provisions, implement certain measures to protect the steelhead trout and its habitat in the Carmel River watershed in the State of California. |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments primarily for purposes of hedging exposures to fluctuations in interest rates. These derivative contracts are entered into for periods consistent with the related underlying exposures and do not constitute positions independent of those exposures. The Company does not enter into derivative contracts for speculative purposes and does not use leveraged instruments. All derivatives are recognized on the balance sheet at fair value. On the date the derivative contract is entered into, the Company may designate the derivative as a hedge of the fair value of a recognized asset or liability (fair-value hedge) or a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (cash-flow hedge). Changes in the fair value of a fair-value hedge, along with the gain or loss on the underlying hedged item, are recorded in current-period earnings. The gains and losses on the effective portion of cash-flow hedges are recorded in other comprehensive income, until earnings are affected by the variability of cash flows. Any ineffective portion of designated cash-flow hedges is recognized in current-period earnings. |
New Accounting Standards | New Accounting Standards Presented in the table below are new accounting standards that were adopted by the Company in 2021: Standard Description Date of Adoption Application Effect on the Consolidated Financial Statements Facilitation of the Effects of Reference Rate Reform on Financial Reporting Provided optional guidance for a limited time to ease the potential accounting burden associated with the transition from London Interbank Offered Rate (“LIBOR”). The guidance contains optional expedients and exceptions for contract modifications, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued. The expedients elected must be applied for all eligible contracts or transactions, with the exception of hedging relationships, which can be applied on an individual basis. March 12, 2020 through December 31, 2022 Prospective for contract modifications and hedging relationships; applied as of January 1, 2020. The standard did not have a material impact on the Consolidated Financial Statements. Simplifying the Accounting for Income Taxes The guidance removes exceptions related to the incremental approach for intraperiod tax allocation, the requirement to recognize a deferred tax liability for changes in ownership of a foreign subsidiary or equity method investment, and the general methodology for calculating income taxes in an interim period when the year-to-date loss exceeds the anticipated loss. The guidance adds requirements to reflect changes to tax laws or rates in the annual effective tax rate computation in the interim period in which the changes were enacted, to recognize franchise or other similar taxes that are partially based on income as an income-based tax and any incremental amounts as non-income-based tax, and to evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. January 1, 2021 Modified retrospective for amendments related to changes in ownership of a foreign subsidiary or equity method investment; The standard did not have a material impact on the Consolidated Financial Statements. Presented in the table below are recently issued accounting standards that have not yet been adopted by the Company as of December 31, 2021: Standard Description Date of Adoption Application Estimated Effect on the Consolidated Financial Statements Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Simplification of financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. This will result in fewer embedded conversion features being separately recognized from the host contract. Earnings per share (“EPS”) calculations have been simplified for certain instruments. January 1, 2022 Either modified retrospective or fully retrospective The Company anticipates the adoption of the standard will not have a material impact on its Consolidated Financial Statements. Disclosures by Business Entities about Government Assistance The amendments in this update requires additional disclosures regarding government grants and contributions. These disclosures require information on the following three items about these government transactions to be provided: information on the nature of transactions and related accounting policy used to account for transactions, the line items on the balance sheet and income statement affected by these transactions including amounts applicable to each line, and significant terms and conditions of the transactions, including commitments and contingencies January 1, 2022 Either prospective or retrospective The Company is evaluating any impact on its Consolidated Financial Statements. Accounting for Contract Asset and Contract Liabilities from Contracts with Customers The guidance requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606 as if it had originated the contracts. January 1, 2023; early adoption permitted Prospective The Company is evaluating any impact on its Consolidated Financial Statements, as well as the timing of adoption. |
Reclassifications | ReclassificationsCertain reclassifications have been made to prior periods in the Consolidated Financial Statements and Notes to conform to the current presentation. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of allowance for funds used during construction | Presented in the table below is AFUDC for the years ended December 31: 2021 2020 2019 Allowance for other funds used during construction $ 27 $ 30 $ 28 Allowance for borrowed funds used during construction 10 13 13 |
Schedule of new accounting pronouncements and changes in accounting principles | New Accounting Standards Presented in the table below are new accounting standards that were adopted by the Company in 2021: Standard Description Date of Adoption Application Effect on the Consolidated Financial Statements Facilitation of the Effects of Reference Rate Reform on Financial Reporting Provided optional guidance for a limited time to ease the potential accounting burden associated with the transition from London Interbank Offered Rate (“LIBOR”). The guidance contains optional expedients and exceptions for contract modifications, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued. The expedients elected must be applied for all eligible contracts or transactions, with the exception of hedging relationships, which can be applied on an individual basis. March 12, 2020 through December 31, 2022 Prospective for contract modifications and hedging relationships; applied as of January 1, 2020. The standard did not have a material impact on the Consolidated Financial Statements. Simplifying the Accounting for Income Taxes The guidance removes exceptions related to the incremental approach for intraperiod tax allocation, the requirement to recognize a deferred tax liability for changes in ownership of a foreign subsidiary or equity method investment, and the general methodology for calculating income taxes in an interim period when the year-to-date loss exceeds the anticipated loss. The guidance adds requirements to reflect changes to tax laws or rates in the annual effective tax rate computation in the interim period in which the changes were enacted, to recognize franchise or other similar taxes that are partially based on income as an income-based tax and any incremental amounts as non-income-based tax, and to evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. January 1, 2021 Modified retrospective for amendments related to changes in ownership of a foreign subsidiary or equity method investment; The standard did not have a material impact on the Consolidated Financial Statements. Presented in the table below are recently issued accounting standards that have not yet been adopted by the Company as of December 31, 2021: Standard Description Date of Adoption Application Estimated Effect on the Consolidated Financial Statements Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Simplification of financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. This will result in fewer embedded conversion features being separately recognized from the host contract. Earnings per share (“EPS”) calculations have been simplified for certain instruments. January 1, 2022 Either modified retrospective or fully retrospective The Company anticipates the adoption of the standard will not have a material impact on its Consolidated Financial Statements. Disclosures by Business Entities about Government Assistance The amendments in this update requires additional disclosures regarding government grants and contributions. These disclosures require information on the following three items about these government transactions to be provided: information on the nature of transactions and related accounting policy used to account for transactions, the line items on the balance sheet and income statement affected by these transactions including amounts applicable to each line, and significant terms and conditions of the transactions, including commitments and contingencies January 1, 2022 Either prospective or retrospective The Company is evaluating any impact on its Consolidated Financial Statements. Accounting for Contract Asset and Contract Liabilities from Contracts with Customers The guidance requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606 as if it had originated the contracts. January 1, 2023; early adoption permitted Prospective The Company is evaluating any impact on its Consolidated Financial Statements, as well as the timing of adoption. |
Impact of the COVID-19 Pandem_2
Impact of the COVID-19 Pandemic (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Schedule related to approved cost recovery mechanisms related to certain incremental costs from the COVID-19 pandemic | Other regulatory actions to date are presented in the table below: Commission Actions Description States Orders issued with deferred accounting Allows the Company to establish regulatory assets to record certain financial impacts related to the COVID-19 pandemic. HI, IN, MD, NJ, PA, VA, WV Orders issued with cost recovery California’s Catastrophic Event Memorandum Account allows the Company’s California subsidiary to track certain financial impacts related to the COVID-19 pandemic for future recovery requests. Iowa issued a base rate case order on June 28, 2021, authorizing recovery in rates of the COVID-19 financial impacts deferred within its annual non-recurring expense rider. Illinois has authorized cost recovery of the COVID-19 financial impacts through a special purpose rider over a 24-month period, which was implemented effective October 1, 2020. Additionally, Illinois approved a bad debt rider tariff on December 16, 2020, allowing collection of actual bad debt expense over last authorized beginning April 2021 through February 2023. Illinois approved a stipulation in March 2021 to allow the rider to be extended through the end of 2023. Missouri issued a base rate case order on April 7, 2021, authorizing recovery in rates of the COVID-19 financial impacts deferred through March 31, 2021 over a three CA, IA, IL, MO |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulated Operations [Abstract] | |
Schedule of generate rate cases | Presented in the table below are annualized incremental revenues, excluding reductions for the amortization of the excess accumulated deferred income taxes (“EADIT”) that are generally offset in income tax expense, assuming a constant water sales volume, resulting from general rate cases authorizations that became effective during 2019 through 2021: (In millions) 2021 2020 2019 General rate cases by state (a) : Iowa (effective October 11, 2021) $ 1 $ — $ — Missouri (effective May 28, 2021) 22 — — Pennsylvania (effective January 28, 2021) 70 — — California (effective January 1, 2021, January 1, 2020 and May 11, 2019) 22 5 4 New Jersey (effective November 1, 2020) — 54 — Indiana (effective May 1, 2020 and July 1, 2019) — 13 4 Kentucky (effective June 28, 2019) — — 13 West Virginia (effective February 25, 2019) — — 19 Maryland (effective February 5, 2019) — — 1 Total general rate case authorizations $ 115 $ 72 $ 41 (a) Excludes authorized increases of $7 million and $4 million in 2021 and 2019, respectively, for the Company’s New York subsidiary, which was sold on January 1, 2022. See Note 6—Acquisitions and Divestitures for additional information. |
Schedule of annualized incremental revenues | Presented in the table below are annualized incremental revenues, assuming a constant water sales volume, resulting from infrastructure surcharge authorizations that became effective during 2019 through 2021: (In millions) 2021 2020 2019 Infrastructure surcharges by state (a) : New Jersey (b) $ 26 $ 20 $ 15 Missouri (c) 7 12 14 Kentucky (effective July 1, 2021 and July 1, 2020) 1 1 — Indiana (effective March 17, 2021) 8 — — Pennsylvania (d) 8 27 11 Illinois (effective January 1, 2021, January 1, 2020 and January 1, 2019) 7 7 8 West Virginia (effective January 1, 2021, January 1, 2020 and January 1, 2019) 5 3 2 Tennessee (effective January 1, 2021, January 1, 2020 and September 1, 2019) 3 2 1 Total infrastructure surcharge authorizations $ 65 $ 72 $ 51 (a) Excludes authorized increases of $2 million in 2019 for the Company’s New York subsidiary, which was sold on January 1, 2022. See Note 6—Acquisitions and Divestitures for additional information. (b) In 2021, $12 million was effective on December 30 and $14 million was effective June 28. In 2020, $10 million was effective June 29 and $10 million was effective January 1. In 2019, the effective date was July 1. (c) In 2021, the effective date was October 7. In 2020, $2 million was effective December 14 and $10 million was effective June 27. In 2019, $5 million was effective December 21 and $9 million was effective June 24. (d) In 2021, the effective date was January 1. In 2020, $8 million was effective October 1, $4 million was effective July 1, $5 million was effective April 1 and $10 million was effective January 1. In 2019, $6 million was effective October 1, $3 million was effective July 1 and $2 million was effective April 1. Presented in the table below are annualized incremental revenues, assuming a constant water sales volume, resulting from infrastructure surcharge authorizations that became effective after January 1, 2022: (In millions) Amount Infrastructure surcharge filings by state: Illinois (effective January 1, 2022) $ 6 Missouri (effective February 1, 2022) 12 Total infrastructure surcharge filings $ 18 |
Summary of composition of regulatory assets | Presented in the table below is the composition of regulatory assets as of December 31: 2021 2020 Deferred pension expense $ 323 $ 374 Removal costs recoverable through rates 313 314 Regulatory balancing accounts 52 57 Other 439 446 Less: Regulatory assets included in assets held for sale (a) (76) (64) Total regulatory assets $ 1,051 $ 1,127 (a) These regulatory assets are related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and are included in assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information. |
Summary of composition of regulatory liabilities | Presented in the table below is the composition of regulatory liabilities as of December 31: 2021 2020 Income taxes recovered through rates $ 1,093 $ 1,230 Removal costs recovered through rates 291 301 Postretirement benefit liability 153 170 Other 110 111 Less: Regulatory liabilities included in liabilities related to assets held for sale (a) (47) (42) Total regulatory liabilities $ 1,600 $ 1,770 (a) These regulatory liabilities are related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and are included in liabilities related to assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | Presented in the table below are operating revenues disaggregated for the year ended December 31, 2021: Revenues from Contracts with Customers Other Revenues Not from Contracts with Customers (a) Total Operating Revenues Regulated Businesses: Water services: Residential $ 1,935 $ — $ 1,935 Commercial 676 — 676 Fire service 151 — 151 Industrial 141 — 141 Public and other 230 — 230 Total water services 3,133 — 3,133 Wastewater services: Residential 151 — 151 Commercial 37 — 37 Industrial 4 — 4 Public and other 16 — 16 Total wastewater services 208 — 208 Miscellaneous utility charges 26 — 26 Alternative revenue programs — 9 9 Lease contract revenue — 8 8 Total Regulated Businesses 3,367 17 3,384 Market-Based Businesses 563 — 563 Other (16) (1) (17) Total operating revenues $ 3,914 $ 16 $ 3,930 (a) Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP. Presented in the table below are operating revenues disaggregated for the year ended December 31, 2020: Revenues from Contracts with Customers Other Revenues Not from Contracts with Customers (a) Total Operating Revenues Regulated Businesses: Water services: Residential $ 1,895 $ — $ 1,895 Commercial 627 — 627 Fire service 147 — 147 Industrial 133 — 133 Public and other 201 — 201 Total water services 3,003 — 3,003 Wastewater services: Residential 134 — 134 Commercial 34 — 34 Industrial 3 — 3 Public and other 14 — 14 Total wastewater services 185 — 185 Miscellaneous utility charges 32 — 32 Alternative revenue programs — 25 25 Lease contract revenue — 10 10 Total Regulated Businesses 3,220 35 3,255 Market-Based Businesses 540 — 540 Other (17) (1) (18) Total operating revenues $ 3,743 $ 34 $ 3,777 (a) Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP. Presented in the table below are operating revenues disaggregated for the year ended December 31, 2019: Revenues from Contracts with Customers Other Revenues Not from Contracts with Customers (a) Total Operating Revenues Regulated Businesses: Water services: Residential $ 1,734 $ 1 $ 1,735 Commercial 639 — 639 Fire service 142 — 142 Industrial 138 — 138 Public and other 214 — 214 Total water services 2,867 1 2,868 Wastewater services: Residential 119 — 119 Commercial 31 — 31 Industrial 3 — 3 Public and other 14 — 14 Total wastewater services 167 — 167 Miscellaneous utility charges 36 — 36 Alternative revenue programs — 16 16 Lease contract revenue — 7 7 Total Regulated Businesses 3,070 24 3,094 Market-Based Businesses 539 — 539 Other (22) (1) (23) Total operating revenues $ 3,587 $ 23 $ 3,610 (a) Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Components of assets held for sale and liabilities | Presented in the table below are the components of assets held for sale and liabilities related to assets held for sale of the New York subsidiary as of December 31, 2021: December 31, 2021 Property, plant and equipment $ 556 Current assets 18 Regulatory assets 76 Goodwill 27 Other assets 6 Assets held for sale $ 683 Current liabilities 13 Regulatory liabilities 47 Other liabilities 23 Liabilities related to assets held for sale $ 83 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of major classes of property, plant and equipment by category | Presented in the table below are the major classes of property, plant and equipment by category as of December 31: 2021 2020 Range of Remaining Useful Lives Weighted Average Useful Life Utility plant: Land and other non-depreciable assets $ 210 $ 174 Sources of supply 938 897 2 to 127 years 46 years Treatment and pumping facilities 4,198 3,984 3 to 111 years 39 years Transmission and distribution facilities 12,308 11,457 9 to 130 years 69 years Services, meters and fire hydrants 4,888 4,555 5 to 90 years 31 years General structures and equipment 2,200 2,003 1 to 109 years 15 years Waste collection 1,363 1,288 5 to 113 years 58 years Waste treatment, pumping and disposal 912 859 2 to 139 years 38 years Construction work in progress 934 837 Less: Utility plant included in assets held for sale (a) (664) (646) Total utility plant 27,287 25,408 Nonutility property 126 211 3 to 50 years 6 years Less: Nonutility plant included in assets held for sale (a) — (5) Total property, plant and equipment $ 27,413 $ 25,614 (a) This property, plant and equipment is related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and is included in assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information. |
Allowance for Uncollectible A_2
Allowance for Uncollectible Accounts (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |
Schedule of allowances for uncollectible accounts | Presented in the table below are the changes in the allowances for uncollectible accounts for the years ended December 31: 2021 2020 2019 Balance as of January 1 $ (60) $ (41) $ (45) Amounts charged to expense (37) (34) (28) Amounts written off 17 12 32 Less: Allowance for uncollectible accounts included in assets held for sale (a) 5 3 — Balance as of December 31 $ (75) $ (60) $ (41) (a) This portion of the allowance for uncollectible accounts is related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and is included in assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in goodwill assets | Presented in the table below are the changes in the carrying value of goodwill for the years ended December 31, 2021 and 2020: Regulated Businesses Market-Based Businesses Consolidated Cost Accumulated Impairment Cost Accumulated Impairment Cost Accumulated Impairment Total Net Balance as of January 1, 2020 $ 3,497 $ (2,332) $ 483 $ (108) $ 3,980 $ (2,440) $ 1,540 Goodwill from acquisitions 5 — — — 5 — 5 Measurement period adjustments (2) — — — (2) — (2) Less: Goodwill included in assets held for sale (a) (39) — — — (39) — (39) Balance as of December 31, 2020 $ 3,461 $ (2,332) $ 483 $ (108) $ 3,944 $ (2,440) $ 1,504 Measurement period adjustments (7) — — — (7) — (7) Goodwill included in assets held for sale (a) 12 — — — 12 — 12 Goodwill reduced through sale of HOS — — (370) — (370) — (370) Balance as of December 31, 2021 $ 3,466 $ (2,332) $ 113 $ (108) $ 3,579 $ (2,440) $ 1,139 (a) This goodwill is related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and is included in assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of changes in accumulated other comprehensive loss by component, net of tax | Presented in the table below are the changes in accumulated other comprehensive loss by component, net of tax, for the years ended December 31, 2021 and 2020: Defined Benefit Plans Gain (Loss) on Cash Flow Hedge Accumulated Other Comprehensive Loss Employee Benefit Plan Funded Status Amortization of Prior Service Cost Amortization of Actuarial Loss Beginning balance as of January 1, 2020 $ (94) $ 1 $ 60 $ (3) $ (36) Other comprehensive income (loss) before reclassification (12) — — (4) (16) Amounts reclassified from accumulated other comprehensive loss — — 3 — 3 Net other comprehensive income (loss) (12) — 3 (4) (13) Ending balance as of December 31, 2020 $ (106) $ 1 $ 63 $ (7) $ (49) Other comprehensive income (loss) before reclassification (1) — — 1 — Amounts reclassified from accumulated other comprehensive loss — — 4 — 4 Net other comprehensive income (loss) (1) — 4 1 4 Ending balance as of December 31, 2021 $ (107) $ 1 $ 67 $ (6) $ (45) |
Schedule of dividends declared | During 2021, 2020 and 2019, the Company paid $428 million, $389 million and $353 million in cash dividends, respectively. Presented in the table below is the per share cash dividends paid for the years ended December 31: 2021 2020 2019 December $ 0.6025 $ 0.55 $ 0.50 September $ 0.6025 $ 0.55 $ 0.50 June $ 0.6025 $ 0.55 $ 0.50 March $ 0.55 $ 0.50 $ 0.455 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock-based compensation expense | Presented in the table below is the stock-based compensation expense recorded in O&M expense in the accompanying Consolidated Statements of Operations for the years ended December 31: 2021 2020 2019 RSUs and PSUs $ 15 $ 19 $ 15 Nonqualified employee stock purchase plan 2 2 2 Stock-based compensation 17 21 17 Income tax benefit (4) (5) (4) Stock-based compensation expense, net of tax $ 13 $ 16 $ 13 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of restricted stock unit activity | Presented in the table below is RSU activity for the year ended December 31, 2021: Shares (in thousands) Weighted Average Grant Date Fair Value (per share) Non-vested total as of December 31, 2020 92 $ 100.39 Granted 45 158.54 Vested (76) 122.26 Forfeited (13) 128.93 Non-vested total as of December 31, 2021 48 $ 112.22 |
Performance Condition | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of restricted stock unit activity | Presented in the table below is PSU activity for the year ended December 31, 2021: Shares (in thousands) Weighted Average Grant Date Fair Value (per share) Non-vested total as of December 31, 2020 293 $ 105.70 Granted 145 128.30 Vested (186) 75.47 Forfeited (20) 159.99 Non-vested total as of December 31, 2021 232 $ 139.40 |
Summary of weighted average assumptions | Presented in the table below are the weighted average assumptions used in the Monte Carlo simulation and the weighted average grant date fair values of PSUs granted for the years ended December 31: 2021 2020 2019 Expected volatility 28.59% 16.65% 16.80% Risk-free interest rate 0.22% 1.28% 2.47% Expected life (years) 3.0 3.0 3.0 Grant date fair value per share $229.22 $159.64 $110.37 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Components of long-term debt | Presented in the table below are the components of long-term debt as of December 31: Rate Weighted Average Rate Maturity 2021 2020 Long-term debt of AWCC: (a) Senior notes—fixed rate 2.30%-8.27% 3.83% 2023-2051 $ 8,965 $ 8,191 Private activity bonds and government funded debt—fixed rate 0.60%-2.45% 1.63% 2023-2031 190 191 Long-term debt of other American Water subsidiaries: Private activity bonds and government funded debt—fixed rate 0.00%-5.50% 1.70% 2022-2048 739 735 Mortgage bonds—fixed rate 6.35%-9.19% 7.36% 2023-2039 534 565 Mandatorily redeemable preferred stock 8.47%-9.75% 8.60% 2024-2036 4 5 Finance lease obligations 12.25% 12.25% 2026 1 1 Long-term debt 10,433 9,688 Unamortized debt (discount) premium, net (b) (9) (4) Unamortized debt issuance costs (23) (22) Less current portion of long-term debt (57) (329) Total long-term debt $ 10,344 $ 9,333 (a) This indebtedness is considered “debt” for purposes of a support agreement between parent company and AWCC, which serves as a functional equivalent of a full and unconditional guarantee by parent company of AWCC’s payment obligations under such indebtedness. (b) Includes debt discount, net of fair value adjustments previously recognized in acquisition purchase accounting. |
Schedule of future sinking fund payments and debt maturities | Presented in the table below are future sinking fund payments and debt maturities: Amount 2022 $ 57 2023 280 2024 474 2025 597 2026 441 Thereafter 8,584 |
Schedule of long-term debt issued | Presented in the table below are the issuances of long-term debt in 2021: Company Type Rate Weighted Average Rate Maturity Amount AWCC Senior notes—fixed rate 2.30%-3.25% 2.78% 2031-2051 $ 1,100 Other American Water subsidiaries Private activity bonds and government funded debt—fixed rate 0.00%-5.00% 0.04% 2022-2047 18 Total issuances $ 1,118 |
Schedule of long-term debt retired through optional redemptions or payments at maturities | Presented in the table below are the retirements and redemptions of long-term debt in 2021 through sinking fund provisions, optional redemption or payment at maturity: Company Type Rate Weighted Average Rate Maturity Amount AWCC Private activity bonds and government funded debt—fixed rate 1.79%-6.55% 5.94% 2021-2031 $ 327 Other American Water subsidiaries Private activity mortgage bonds 9.13%-9.69% 9.52% 2021 31 Other American Water subsidiaries Private activity bonds and government funded debt—fixed rate 0.00%-5.50% 1.38% 2021-2048 13 Other American Water subsidiaries Mandatory redeemable preferred stock 8.49%-8.49% 8.49% 2022-2022 1 Total retirements and redemptions $ 372 |
Short-Term Debt (Tables)
Short-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Debt [Abstract] | |
Schedule of company's aggregate credit facility commitments, commercial paper limit, letter of credit availability and availability capacity | Presented in the tables below is the aggregate credit facility commitments, commercial paper limit and letter of credit availability under the revolving credit facility, as well as the available capacity for each, as of December 31: 2021 Commercial Paper Limit Letters of Credit Total (a) (In millions) Total availability $ 2,100 $ 150 $ 2,250 Outstanding debt (584) (76) (660) Remaining availability as of December 31, 2021 $ 1,516 $ 74 $ 1,590 (a) Total remaining availability of $1.59 billion as of December 31, 2021 may be accessed through revolver draws. 2020 Commercial Paper Limit Letters of Credit Total (a) (In millions) Total availability $ 2,100 $ 150 $ 2,250 Outstanding debt (786) (76) (862) Remaining availability as of December 31, 2020 $ 1,314 $ 74 $ 1,388 (a) Total remaining availability may be accessed through revolver draws. Presented in the table below is the Company’s total available liquidity as of December 31, 2021 and 2020, respectively: Cash and Cash Equivalents Availability on Revolving Credit Facility Total Available Liquidity (In millions) Available liquidity as of December 31, 2021 $ 116 $ 1,590 $ 1,706 Available liquidity as of December 31, 2020 $ 547 $ 1,388 $ 1,935 |
Schedule of short-term borrowings activity | Presented in the table below is the short-term borrowing activity for AWCC for the years ended December 31: 2021 2020 Average borrowings $ 910 $ 1,047 Maximum borrowings outstanding 1,647 2,172 Weighted average interest rates, computed on daily basis 0.25 % 1.16 % Weighted average interest rates, as of December 31 0.20 % 0.53 % |
General Taxes (Tables)
General Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
General Taxes [Abstract] | |
Components of general tax expense from continuing operations | Presented in the table below is the components of general tax expense for the years ended December 31: 2021 2020 2019 Property and capital stock $ 149 $ 140 $ 124 Gross receipts and franchise 121 116 110 Payroll 39 36 35 Other general 12 11 11 Total general taxes $ 321 $ 303 $ 280 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense from continuing operations | Presented in the table below is the components of income tax expense for the years ended December 31: 2021 2020 2019 Current income taxes: State $ 72 $ 8 $ 4 Federal 75 — — Total current income taxes $ 147 $ 8 $ 4 Deferred income taxes: State $ 10 $ 49 $ 54 Federal 221 159 155 Amortization of deferred investment tax credits (1) (1) (1) Total deferred income taxes 230 207 208 Provision for income taxes $ 377 $ 215 $ 212 |
Reconciliation of income tax expense from continuing operations | Presented in the table below is a reconciliation between the statutory federal income tax rate and the Company’s effective tax rate for the years ended December 31: 2021 2020 2019 Income tax at statutory rate 21.0 % 21.0 % 21.0 % Increases (decreases) resulting from: State taxes, net of federal taxes 3.9 % 4.8 % 5.4 % EADIT (3.6) % (2.1) % (0.9) % Tax impact due to the sale of HOS 1.6 % — % — % Other, net 0.1 % (0.4) % (0.1) % Effective tax rate 23.0 % 23.3 % 25.4 % |
Components of net deferred tax liability from continuing operations | Presented in the table below are the components of the net deferred tax liability as of December 31: 2021 2020 Deferred tax assets: Advances and contributions $ 439 $ 424 Tax losses and credits 10 65 Regulatory income tax assets 301 329 Pension and other postretirement benefits 50 100 Other 144 165 Total deferred tax assets 944 1,083 Valuation allowance (10) (19) Total deferred tax assets, net of allowance $ 934 $ 1,064 Deferred tax liabilities: Property, plant and equipment $ 3,087 $ 2,913 Deferred pension and other postretirement benefits 69 97 Other 180 216 Total deferred tax liabilities 3,336 3,226 Less: Deferred tax liabilities included in liabilities related to assets held for sale (a) — 69 Total deferred tax liabilities, net of deferred tax assets $ (2,402) $ (2,093) (a) These deferred tax liabilities are related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and are included in liabilities related to assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information. |
Changes in gross liability excluding interest and penalties for unrecognized tax benefits | Presented in the table below are the changes in gross liability, excluding interest and penalties, for unrecognized tax benefits: Amount Balance as of January 1, 2020 $ 110 Increases in current period tax positions 18 Decreases in prior period measurement of tax positions (6) Balance as of December 31, 2020 $ 122 Increases in current period tax positions 23 Decreases in prior period measurement of tax positions (5) Balance as of December 31, 2021 $ 140 |
Changes in valuation allowance | Presented in the table below are the changes in the valuation allowance: Amount Balance as of January 1, 2019 $ 14 Increases in current period tax positions 7 Balance as of December 31, 2019 $ 21 Decreases in current period tax positions (2) Balance as of December 31, 2020 $ 19 Decreases in current period tax positions (9) Balance as of December 31, 2021 $ 10 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of significant unobservable inputs | Presented in the tables below are a reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3) for 2021 and 2020, respectively: Level 3 Balance as of January 1, 2021 $ 356 Actual return on assets 41 Purchases, issuances and settlements, net (61) Balance as of December 31, 2021 $ 336 Level 3 Balance as of January 1, 2020 $ 349 Actual return on assets 3 Purchases, issuances and settlements, net 4 Balance as of December 31, 2020 $ 356 |
Schedule of rollforward changes in benefit obligation and plan assets | Presented in the table below is a rollforward of the changes in the benefit obligation and plan assets for the two most recent years, for all plans combined: Pension Benefits Other Benefits 2021 2020 2021 2020 Change in benefit obligation: Benefit obligation as of January 1, $ 2,386 $ 2,161 $ 382 $ 374 Service cost 36 31 4 4 Interest cost 64 73 10 12 Plan participants' contributions — — 2 2 Plan amendments — — — 5 Actuarial loss (gain) (46) 233 (26) 13 Settlements (a) (6) (3) — — Gross benefits paid (140) (109) (31) (29) Federal subsidy — — 1 1 Benefit obligation as of December 31, $ 2,294 $ 2,386 $ 342 $ 382 Change in plan assets: Fair value of plan assets as of January 1, $ 1,990 $ 1,747 $ 556 $ 532 Actual return on plan assets 108 314 9 53 Employer contributions 39 41 1 (2) Plan participants' contributions — — 2 2 Settlements (a) (6) (3) — — Benefits paid (140) (109) (30) (29) Fair value of plan assets as of December 31, $ 1,991 $ 1,990 $ 538 $ 556 Funded value as of December 31, $ (303) $ (396) $ 196 $ 174 Amounts recognized on the balance sheet: Noncurrent asset $ — $ — $ 193 $ 173 Current liability (2) (2) — — Noncurrent liability (285) (388) (1) (1) (Liabilities) assets related to assets held for sale (b) (16) (6) 4 2 Net amount recognized $ (303) $ (396) $ 196 $ 174 (a) The Company paid $6 million and $3 million of lump sum payment distributions from the Company’s New York Water Service Corporation Pension Plan for the years ended December 31, 2021 and 2020, respectively. (b) These balances are related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and are included in assets held for sale and liabilities related to assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information. |
Summary of accumulated other comprehensive income and regulatory assets | Presented in the table below are the components of accumulated other comprehensive income and regulatory assets that have not been recognized as components of periodic benefit costs as of December 31: Pension Benefits Other Benefits 2021 2020 2021 2020 Net actuarial loss $ 381 $ 436 $ 35 $ 49 Prior service credit (14) (16) (186) (217) Net amount recognized $ 367 $ 420 $ (151) $ (168) Regulatory assets (liabilities) $ 317 $ 366 $ (151) $ (168) Accumulated other comprehensive income 50 54 — — Total $ 367 $ 420 $ (151) $ (168) |
Schedule of projected benefit obligation, accumulated benefit obligation and fair value of plan assets | Presented in the tables below are the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with a projected obligation in excess of plan assets as of December 31, 2021 and 2020: Projected Benefit Obligation Exceeds the Fair Value of Plans' Assets 2021 2020 Projected benefit obligation $ 2,294 $ 2,386 Fair value of plan assets 1,991 1,990 Accumulated Benefit Obligation Exceeds the Fair Value of Plans' Assets 2021 2020 Accumulated benefit obligation $ 2,138 $ 2,188 Fair value of plan assets 1,991 1,990 |
Schedule of expected cash flows for pension and postretirement benefit plans | Presented in the table below is information about the expected cash flows for the pension and postretirement benefit plans: Pension Benefits Other Benefits 2022 expected employer contributions: To plan trusts $ 38 $ — To plan participants 2 — |
Schedule of expected benefit payments | Presented in the table below are the net benefits expected to be paid from the plan assets or the Company’s assets: Pension Benefits Other Benefits Expected Benefit Payments Expected Benefit Payments Expected Federal Subsidy Payments 2022 $ 130 $ 26 $ 1 2023 133 25 1 2024 134 25 1 2025 137 25 1 2026 138 25 1 2027-2031 688 113 3 |
Schedule of significant assumptions of pension and other postretirement benefit plans | Presented in the table below are the significant assumptions related to the pension and other postretirement benefit plans: Pension Benefits Other Benefits 2021 2020 2019 2021 2020 2019 Weighted average assumptions used to determine December 31 benefit obligations: Discount rate 2.94% 2.74% 3.44% 2.90% 2.56% 3.36% Rate of compensation increase 3.51% 3.51% 2.97% N/A N/A N/A Medical trend N/A N/A N/A graded from graded from graded from 6.00% in 2022 6.25% in 2021 6.50% in 2020 to 5.00% in 2026+ to 5.00% in 2026+ to 5.00% in 2026+ Weighted average assumptions used to determine net periodic cost: Discount rate 2.74% 3.44% 4.38% 2.56% 3.36% 4.32% Expected return on plan assets 6.50% 6.50% 6.20% 3.67% 3.68% 3.56% Rate of compensation increase 3.51% 2.97% 3.00% N/A N/A N/A Medical trend N/A N/A N/A graded from graded from graded from 6.25% in 2021 6.50% in 2020 6.75% in 2019 to 5.00% in 2026+ to 5.00% in 2026+ to 5.00% in 2026+ NOTE “N/A” in the table above means assumption is not applicable. |
Components of net periodic benefit costs | Presented in the table below are the components of net periodic benefit costs for the years ended December 31: 2021 2020 2019 Components of net periodic pension benefit cost: Service cost $ 36 $ 31 $ 28 Interest cost 64 73 82 Expected return on plan assets (126) (111) (91) Amortization of prior service (credit) cost (3) (3) (3) Amortization of actuarial loss 27 30 32 Settlements (a) — 1 — Net periodic pension benefit cost $ (2) $ 21 $ 48 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Current year actuarial loss (gain) $ 1 $ 12 $ (8) Amortization of actuarial loss (4) (3) (4) Total recognized in other comprehensive income (3) 9 (12) Total recognized in net periodic benefit cost and other comprehensive income $ (5) $ 30 $ 36 Components of net periodic other postretirement benefit (credit) cost: Service cost $ 4 $ 4 $ 4 Interest cost 10 12 15 Expected return on plan assets (21) (19) (18) Amortization of prior service credit (32) (34) (35) Amortization of actuarial loss — 2 3 Net periodic other postretirement benefit (credit) cost $ (39) $ (35) $ (31) (a) Due to the amount of lump sum payment distributions from the Company’s New York Water Service Corporation Pension Plan, settlement charges of less than $1 million were recorded for both years ended December 31, 2021 and 2020. In accordance with existing regulatory accounting treatment, the Company has maintained the settlement charges in regulatory assets on the Consolidated Balance Sheets. The amount is being amortized in accordance with existing regulatory practice. |
Pension Plan Asset | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of changes in fair value of plan assets | Presented in the tables below are the fair values and asset allocations of the pension plan assets as of December 31, 2021 and 2020, respectively, by asset category: Asset Category 2022 Target Allocation Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Percentage of Plan Assets as of December 31, 2021 Cash $ 54 $ 54 $ — $ — 3 % Equity securities: 50 % U.S. large cap 217 217 — — 11 % U.S. small cap 113 113 — — 6 % International 516 7 354 155 26 % Real estate fund 141 — — 141 7 % REITs 9 — 9 — — % Fixed income securities: 50 % U.S. Treasury securities and government bonds 256 249 7 — 13 % Corporate bonds 601 — 601 — 30 % Mortgage-backed securities 9 — 9 — — % Municipal bonds 25 — 25 — 1 % Treasury futures — — — — — % Long duration bond fund 10 7 3 — 1 % Guarantee annuity contracts 40 — — 40 2 % Total 100 % $ 1,991 $ 647 $ 1,008 $ 336 100 % Asset Category 2021 Target Allocation Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Percentage of Plan Assets as of December 31, 2020 Cash $ 78 $ 78 $ — $ — 4 % Equity securities: 50 % U.S. large cap 420 420 — — 21 % U.S. small cap 124 124 — — 6 % International 367 8 169 190 18 % Real estate fund 120 — — 120 6 % REITs 7 — 7 — — % Fixed income securities: 50 % U.S. Treasury securities and government bonds 171 163 8 — 9 % Corporate bonds 594 — 594 — 30 % Mortgage-backed securities 9 — 9 — — % Municipal bonds 34 — 34 — 2 % Treasury futures 10 10 — — 1 % Long duration bond fund 10 7 3 — 1 % Guarantee annuity contracts 46 — — 46 2 % Total 100 % $ 1,990 $ 810 $ 824 $ 356 100 % |
Postretirement Benefit Plan Assets | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of changes in fair value of plan assets | Presented in the tables below are the fair values and asset allocations of the postretirement benefit plan assets as of December 31, 2021 and 2020, respectively, by asset category: Asset Category 2022 Target Allocation Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Percentage of Plan Assets as of December 31, 2021 Bargain VEBA: Cash $ 10 $ 10 $ — $ — 3 % Equity securities: 4 % U.S. large cap 18 18 — — 5 % International 1 1 — — — % Fixed income securities: 96 % U.S. Treasury securities and government bonds 363 279 84 — 91 % Long duration bond fund 5 5 — — 1 % Total bargain VEBA 100 % $ 397 $ 313 $ 84 $ — 100 % Non-bargain VEBA: Cash $ 2 $ 2 $ — $ — — Equity securities: 60 % U.S. large cap 54 54 — — 39 % International 35 35 — — 25 % Fixed income securities: 40 % Core fixed income bond fund (a) 49 — 49 — 36 % Total non-bargain VEBA 100 % $ 140 $ 91 $ 49 $ — 100 % Life VEBA: Cash $ 1 $ 1 $ — $ — 100 % Equity securities: 70 % U.S. large cap — — — — — % Fixed income securities: 30 % Core fixed income bond fund (a) — — — — — % Total life VEBA 100 % $ 1 $ 1 $ — $ — 100 % Total 100 % $ 538 $ 405 $ 133 $ — 100 % (a) Includes cash for margin requirements. Asset Category 2021 Target Allocation Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Percentage of Plan Assets as of 12/31/2020 Bargain VEBA: Cash $ 12 $ 12 $ — $ — 3 % Equity securities: 4 % U.S. large cap 14 14 — — 3 % Fixed income securities: 96 % U.S. Treasury securities and government bonds 389 308 81 — 93 % Long duration bond fund 5 5 — — 1 % Total bargain VEBA 100 % $ 420 $ 339 $ 81 $ — 100 % Non-bargain VEBA: Cash $ 1 $ 1 $ — $ — — Equity securities: 60 % U.S. large cap 51 51 — — 38 % International 33 33 — — 24 % Fixed income securities: 40 % Core fixed income bond fund (a) 50 — 50 — 38 % Total non-bargain VEBA 100 % $ 135 $ 85 $ 50 $ — 100 % Life VEBA: Equity securities: 70 % U.S. large cap $ — $ — $ — $ — — % Fixed income securities: 30 % Core fixed income bond fund (a) 1 1 — — 100 % Total life VEBA 100 % $ 1 $ 1 $ — $ — 100 % Total 100 % $ 556 $ 425 $ 131 $ — 100 % (a) Includes cash for margin requirements. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of future annual commitments related to minimum quantities of purchased water having non-cancelable terms | Presented in the table below are the future annual commitments related to minimum quantities of purchased water having non-cancelable contracts: Amount 2022 $ 71 2023 65 2024 51 2025 49 2026 49 Thereafter 507 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of numerator and denominator for basic and diluted earnings per share | Presented in the table below is a reconciliation of the numerator and denominator for the basic and diluted earnings per share (“EPS”) calculations for the years ended December 31: 2021 2020 2019 Numerator: Net income attributable to common shareholders $ 1,263 $ 709 $ 621 Denominator: Weighted average common shares outstanding—Basic 182 181 181 Effect of dilutive common stock equivalents — 1 — Weighted average common shares outstanding—Diluted 182 182 181 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amounts and fair values of financial instruments | Presented in the tables below are the carrying amounts, including fair value adjustments previously recognized in acquisition purchase accounting, and the fair values of the Company’s financial instruments: As of December 31, 2021 Carrying Amount At Fair Value L e vel 1 Level 2 Level 3 Total Preferred stock with mandatory redemption requirements $ 4 $ — $ — $ 6 $ 6 Long-term debt (excluding finance lease obligations) 10,396 10,121 60 1,637 11,818 As of December 31, 2020 Carrying Amount At Fair Value L e vel 1 Level 2 Level 3 Total Preferred stock with mandatory redemption requirements $ 5 $ — $ — $ 7 $ 7 Long-term debt (excluding finance lease obligations) 9,656 9,639 415 1,753 11,807 |
Schedule of fair value, assets and liabilities measured on recurring basis | Presented in the tables below are assets and liabilities measured and recorded at fair value on a recurring basis and their level within the fair value hierarchy: As of December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Restricted funds $ 21 $ — $ — $ 21 Rabbi trust investments 23 — — 23 Deposits 27 — — 27 Other investments 17 — — 17 Contingent cash payment from the sale of HOS — — 72 72 Total assets 88 — 72 160 Liabilities: Deferred compensation obligations 27 — — 27 Total liabilities 27 — — 27 Total assets $ 61 $ — $ 72 $ 133 As of December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Restricted funds $ 29 $ — $ — $ 29 Rabbi trust investments 19 — — 19 Deposits 4 — — 4 Other investments 11 — — 11 Total assets 63 — — 63 Liabilities: Deferred compensation obligations 24 — — 24 Total liabilities 24 — — 24 Total assets $ 39 $ — $ — $ 39 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summarized segment information | Presented in the tables below is summarized segment information as of and for the years ended December 31: 2021 Regulated Market-Based Businesses Other Consolidated Operating revenues $ 3,384 $ 563 $ (17) $ 3,930 Depreciation and amortization 601 22 13 636 Total operating expenses, net 2,227 510 (3) 2,734 Interest expense (290) (7) (106) (403) Interest income 1 3 — 4 Gain or (loss) on sale of businesses (1) 748 — 747 Income before income taxes 962 798 (120) 1,640 Provision for income taxes 172 248 (43) 377 Net income attributable to common shareholders 789 550 (76) 1,263 Total assets 23,365 514 2,196 26,075 Cash paid for capital expenditures 1,747 8 9 1,764 2020 Regulated Market-Based Businesses Other Consolidated Operating revenues $ 3,255 $ 540 $ (18) $ 3,777 Depreciation and amortization 562 26 16 604 Total operating expenses, net 2,102 421 6 2,529 Interest expense (293) (7) (97) (397) Interest income 2 8 (8) 2 Income before income taxes 932 120 (128) 924 Provision for income taxes 217 29 (31) 215 Net income attributable to common shareholders 715 91 (97) 709 Total assets 22,357 891 1,518 24,766 Cash paid for capital expenditures 1,804 10 8 1,822 2019 Regulated Market-Based Businesses Other Consolidated Operating revenues $ 3,094 $ 539 $ (23) $ 3,610 Depreciation and amortization 529 37 16 582 Total operating expenses, net 1,964 436 (4) 2,396 Interest expense (299) (8) (79) (386) Interest income 4 13 (13) 4 Income before income taxes 869 66 (102) 833 Provision for income taxes 215 20 (23) 212 Net income attributable to common shareholders 654 46 (79) 621 Total assets 20,318 1,008 1,356 22,682 Cash paid for capital expenditures 1,627 13 14 1,654 |
Unaudited Quarterly Data (Table
Unaudited Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Data [Abstract] | |
Schedule of unaudited quarterly data | Presented in the tables below are supplemental, unaudited, consolidated, quarterly financial data for each of the four quarters in the years ended December 31, 2021 and 2020, respectively. The operating results for any quarter are not indicative of results that may be expected for a full year or any future periods. 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Operating revenues $ 888 $ 999 $ 1,092 $ 951 Operating income 229 330 417 220 Net income attributable to common shareholders 133 207 278 645 Basic earnings per share: (a) Net income attributable to common shareholders $ 0.73 $ 1.14 $ 1.53 $ 3.55 Diluted earnings per share: Net income attributable to common shareholders 0.73 1.14 1.53 3.55 (a) Amounts may not sum due to rounding. 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Operating revenues $ 844 $ 931 $ 1,079 $ 923 Operating income 239 313 433 263 Net income attributable to common shareholders 124 176 264 145 Basic earnings per share: (a) Net income attributable to common shareholders $ 0.69 $ 0.97 $ 1.46 $ 0.80 Diluted earnings per share: Net income attributable to common shareholders 0.68 0.97 1.46 0.80 (a) Amounts may not sum due to rounding. |
Organization and Operation - Ad
Organization and Operation - Additional Information (Details) | Dec. 31, 2021state |
Regulated Businesses | |
Segment Reporting Information [Line Items] | |
Number of states in which entity provides water and wastewater services | 14 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies [Line Items] | |||
Estimated refunds | $ 23,000,000 | $ 23,000,000 | |
Amortization of contributions in aid of construction | $ 36,000,000 | 32,000,000 | $ 29,000,000 |
Payment terms from billing, period | 30 days | ||
Payments for environmental loss contingencies | $ 1,000,000 | ||
Remediation costs accrued | 0 | 1,000,000 | |
Gain (loss) on sale of business | $ 747,000,000 | 0 | $ (44,000,000) |
Market-Based Businesses | |||
Significant Accounting Policies [Line Items] | |||
Payment terms from billing, period | 12 months | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Payment terms from billing, period | 1 year | ||
Software | |||
Significant Accounting Policies [Line Items] | |||
Acquisition cost, carrying value | $ 374,000,000 | $ 360,000,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Allowance for Funds Used During Construction (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Funds | |||
Significant Accounting Policies [Line Items] | |||
Allowance for funds used during construction | $ 27 | $ 30 | $ 28 |
Borrowed Funds | |||
Significant Accounting Policies [Line Items] | |||
Allowance for funds used during construction | $ 10 | $ 13 | $ 13 |
Impact of the COVID-19 Pandem_3
Impact of the COVID-19 Pandemic - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($) | Dec. 31, 2021USD ($) | Feb. 16, 2022stateregulatoryJurisdiction | Dec. 31, 2020USD ($) | |
Unusual Risk or Uncertainty [Line Items] | ||||
Regulatory assets | $ 1,051 | $ 1,127 | ||
Regulatory liabilities | $ 1,600 | $ 1,770 | ||
Subsequent Event | ||||
Unusual Risk or Uncertainty [Line Items] | ||||
Number of regulatory jurisdictions that began to seek to address the impacts of COVID-19 | regulatoryJurisdiction | 11 | |||
Total number of regulatory jurisdictions | regulatoryJurisdiction | 13 | |||
Number of states who have ordered active moratoria on the suspension of service disconnections due to non-payment | state | 1 | |||
Number of states who have ordered active moratoria on the suspension of service disconnections due to non-payment, expired | state | 12 | |||
Illinois | ||||
Unusual Risk or Uncertainty [Line Items] | ||||
Authorized cost recovery period | 24 months | |||
Missouri | ||||
Unusual Risk or Uncertainty [Line Items] | ||||
Authorized cost recovery period | 3 years | |||
COVID-19 | ||||
Unusual Risk or Uncertainty [Line Items] | ||||
Regulatory assets | $ 36 | |||
Regulatory liabilities | $ 6 | |||
COVID-19 | Pennsylvania | ||||
Unusual Risk or Uncertainty [Line Items] | ||||
Reduction of regulatory assets | $ 7 |
Regulatory Matters - Summary of
Regulatory Matters - Summary of General Rate Cases Authorizations (Details) - USD ($) $ in Millions | Feb. 25, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Public Utilities, General Disclosures | ||||
General rate case authorizations | $ 115 | $ 72 | $ 41 | |
Iowa | ||||
Public Utilities, General Disclosures | ||||
General rate case authorizations | 1 | 0 | 0 | |
Missouri | ||||
Public Utilities, General Disclosures | ||||
General rate case authorizations | 22 | 0 | 0 | |
Pennsylvania | ||||
Public Utilities, General Disclosures | ||||
General rate case authorizations | $ 70 | 70 | 0 | 0 |
California | ||||
Public Utilities, General Disclosures | ||||
General rate case authorizations | 22 | 5 | 4 | |
New Jersey | ||||
Public Utilities, General Disclosures | ||||
General rate case authorizations | 0 | 54 | 0 | |
Indiana | ||||
Public Utilities, General Disclosures | ||||
General rate case authorizations | 0 | 13 | 4 | |
Kentucky | ||||
Public Utilities, General Disclosures | ||||
General rate case authorizations | 0 | 0 | 13 | |
West Virginia | ||||
Public Utilities, General Disclosures | ||||
General rate case authorizations | 0 | 0 | 19 | |
Maryland | ||||
Public Utilities, General Disclosures | ||||
General rate case authorizations | 0 | $ 0 | 1 | |
New York | ||||
Public Utilities, General Disclosures | ||||
General rate case authorizations | $ 7 | $ 4 |
Regulatory Matters - General Ra
Regulatory Matters - General Rate Cases Additional Information (Details) - USD ($) $ in Millions | Feb. 10, 2022 | Jan. 18, 2022 | Jan. 14, 2022 | Dec. 01, 2021 | Nov. 18, 2021 | Aug. 18, 2021 | Apr. 30, 2021 | Apr. 07, 2021 | Mar. 02, 2021 | Feb. 25, 2021 | Jan. 15, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 28, 2021 |
Public Utilities, General Disclosures | |||||||||||||||
General rate case authorizations | $ 115 | $ 72 | $ 41 | ||||||||||||
California | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
General rate case authorizations | 22 | 5 | 4 | ||||||||||||
California | Water and Wastewater Services | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
General rate case authorizations, additional annualized revenue | $ 22 | ||||||||||||||
General rate case authorizations, excess of accumulated deferred income taxes, reduction in revenue | $ 4 | ||||||||||||||
California | Water and Wastewater Services | Subsequent Event | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
General rate case authorizations, escalation increase, amount | $ 13 | ||||||||||||||
General rate case authorizations, Tax Cuts and Jobs Act of 2017, reduction | $ 4 | ||||||||||||||
Review period | 45 days | ||||||||||||||
Iowa | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
General rate case authorizations, approved, increase | $ 1 | ||||||||||||||
General rate case authorizations | 1 | 0 | 0 | ||||||||||||
Missouri | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
General rate case authorizations, additional annualized revenue | $ 22 | ||||||||||||||
Net of excess accumulated deferred income taxes, reduction in revenue | 25 | ||||||||||||||
Net of excess accumulated deferred income taxes, protected, payable to customers | 72 | ||||||||||||||
Net of excess accumulated deferred income taxes, unprotected, payable to customers | $ 74 | ||||||||||||||
Net of excess accumulated deferred income taxes, unprotected, payable to customers, period | 10 years | ||||||||||||||
Net of excess accumulated deferred income taxes, protected and unprotected, catch up period amount | $ 13 | ||||||||||||||
Net of excess accumulated deferred income taxes, payable to customers, new base rate amortization period | 2 years 6 months | ||||||||||||||
General rate case authorizations | 22 | 0 | 0 | ||||||||||||
New Jersey | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
Requested rate adjustment, amount | $ 29 | ||||||||||||||
General rate case authorizations | 0 | 54 | 0 | ||||||||||||
New Jersey | Subsequent Event | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
Requested rate increase (decrease), amount | $ 110 | ||||||||||||||
Pennsylvania | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
General rate case authorizations, additional annualized revenue | $ 90 | ||||||||||||||
General rate case authorizations, Tax Cuts and Jobs Act of 2017, reduction | 51 | ||||||||||||||
Net of excess accumulated deferred income taxes, reduction in revenue | 19 | ||||||||||||||
Net of excess accumulated deferred income taxes, protected, payable to customers | 200 | ||||||||||||||
Net of excess accumulated deferred income taxes, unprotected, payable to customers | $ 116 | ||||||||||||||
Net of excess accumulated deferred income taxes, unprotected, payable to customers, period | 20 years | ||||||||||||||
Net of excess accumulated deferred income taxes, payable to customers, new base rate amortization period | 2 years | ||||||||||||||
General rate case authorizations, increase net | $ 71 | ||||||||||||||
General rate case authorizations | 70 | 70 | 0 | 0 | |||||||||||
General rate case authorizations, second threshold | 20 | ||||||||||||||
Net of excess accumulated deferred income taxes, protected and unprotected, payable to customers | 19 | ||||||||||||||
Net of excess accumulated deferred income taxes, payable to customers, bill credit | $ 11 | ||||||||||||||
Net of excess accumulated deferred income taxes, payable to customers, bill credit period | 2 years | ||||||||||||||
Illinois | Subsequent Event | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
Requested rate increase (decrease), amount | $ 71 | ||||||||||||||
Kentucky | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
General rate case authorizations | 0 | 0 | 13 | ||||||||||||
Requested rate increase (decrease), amount | $ 1 | ||||||||||||||
Kentucky | June 1, 2022 | Maximum | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
Requested rate increase (decrease), amount | 1 | ||||||||||||||
Kentucky | June 1, 2023 | Maximum | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
Requested rate increase (decrease), amount | 1 | ||||||||||||||
Kentucky | June 1, 2024 | Maximum | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
Requested rate increase (decrease), amount | 1 | ||||||||||||||
Kentucky | June 1, 2025 | Maximum | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
Requested rate increase (decrease), amount | $ 1 | ||||||||||||||
Virginia | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
Requested rate increase (decrease), amount | $ 15 | ||||||||||||||
Hawaii | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
Requested rate increase (decrease), amount | $ 2 | ||||||||||||||
West Virginia | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
Net of excess accumulated deferred income taxes, reduction in revenue | $ 1 | ||||||||||||||
General rate case authorizations | 0 | 0 | 19 | ||||||||||||
Requested, general rate case for annualized revenues | 32 | ||||||||||||||
Infrastructure changes | $ 10 | ||||||||||||||
Indiana | |||||||||||||||
Public Utilities, General Disclosures | |||||||||||||||
General rate case authorizations | $ 0 | $ 13 | $ 4 |
Regulatory Matters - Summary _2
Regulatory Matters - Summary of Infrastructure Surcharge Authorizations (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | $ 65 | $ 72 | $ 51 | |
Subsequent Event | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | $ 18 | |||
New Jersey | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 26 | 20 | 15 | |
New Jersey | December 30, 2021 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 12 | |||
New Jersey | June 28, 2021 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 14 | |||
New Jersey | June 29, 2020 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 10 | |||
New Jersey | January 1, 2020 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 10 | |||
Missouri | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 7 | 12 | 14 | |
Missouri | December 14, 2020 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 2 | |||
Missouri | June 27, 2020 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 10 | |||
Missouri | December 21, 2019 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 5 | |||
Missouri | June 24, 2019 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 9 | |||
Missouri | February 1, 2022 | Subsequent Event | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 12 | |||
Kentucky | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 1 | 1 | 0 | |
Indiana | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 8 | 0 | 0 | |
Pennsylvania | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 8 | 27 | 11 | |
Pennsylvania | January 1, 2020 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 10 | |||
Pennsylvania | October 1, 2020 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 8 | |||
Pennsylvania | July 1, 2010 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 4 | |||
Pennsylvania | April 1, 2020 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 5 | |||
Pennsylvania | October 1, 2019 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 6 | |||
Pennsylvania | July 1, 2019 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 3 | |||
Pennsylvania | April 1, 2019 | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 2 | |||
Illinois | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 7 | 7 | 8 | |
Illinois | January 1, 2022 | Subsequent Event | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | $ 6 | |||
West Virginia | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | 5 | 3 | 2 | |
Tennessee | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | $ 3 | $ 2 | 1 | |
New York | ||||
Public Utilities, General Disclosures | ||||
Infrastructure surcharge authorizations | $ 2 |
Regulatory Matters - Infrastruc
Regulatory Matters - Infrastructure Surcharge Authorizations Additional Information (Details) - USD ($) $ in Millions | Jan. 19, 2022 | Jun. 30, 2021 |
Indiana | Subsequent Event | ||
Public Utilities, General Disclosures | ||
Requested infrastructure surcharge, amount | $ 8 | |
West Virginia | ||
Public Utilities, General Disclosures | ||
Requested infrastructure surcharge, amount | $ 3 |
Regulatory Matters - Summary _3
Regulatory Matters - Summary of Composition of Regulatory Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Regulatory Assets [Line Items] | ||
Regulatory assets | $ (1,051) | $ (1,127) |
Deferred pension expense | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | (323) | (374) |
Removal costs recoverable through rates | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | (313) | (314) |
Regulatory balancing accounts | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | (52) | (57) |
Other | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | (439) | (446) |
Assets held for sale | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ (76) | $ (64) |
Regulatory Matters - Regulatory
Regulatory Matters - Regulatory Assets and Liabilities Additional Information (Details) $ in Millions | Aug. 31, 2018USD ($) | Dec. 31, 2021USD ($)subsidiary | Dec. 31, 2020USD ($) |
Regulatory Asset And Liabilities [Line Items] | |||
Regulatory asset, earned revenue, percentage | 50.00% | ||
Number of proceedings, amortizing EADIT and crediting customers | subsidiary | 12 | ||
Number of proceedings, pending amortization of EADIT | subsidiary | 1 | ||
TCJA Reserve on Revenue | |||
Regulatory Asset And Liabilities [Line Items] | |||
Regulatory liability, current | $ 8 | $ 6 | |
Postretirement Benefit Plan Assets | |||
Regulatory Asset And Liabilities [Line Items] | |||
Reduction to net accrued postretirement benefit obligation | $ 227 | ||
Deferred pension expense | |||
Regulatory Asset And Liabilities [Line Items] | |||
Regulatory assets underfunded status | 317 | 366 | |
Deferred vacation pay | |||
Regulatory Asset And Liabilities [Line Items] | |||
Regulatory assets, current | $ 16 | $ 13 |
Regulatory Matters - Summary _4
Regulatory Matters - Summary of Composition of Regulatory Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ 1,600 | $ 1,770 |
Income taxes recovered through rates | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 1,093 | 1,230 |
Removal costs recovered through rates | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 291 | 301 |
Postretirement benefit liability | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 153 | 170 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 110 | 111 |
Assets held for sale | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ 47 | $ 42 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | $ 3,914 | $ 3,743 | $ 3,587 | ||||||||
Other operating income | 16 | 34 | 23 | ||||||||
Operating revenues | $ 951 | $ 1,092 | $ 999 | $ 888 | $ 923 | $ 1,079 | $ 931 | $ 844 | 3,930 | 3,777 | 3,610 |
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | (16) | (17) | (22) | ||||||||
Other operating income | (1) | (1) | (1) | ||||||||
Operating revenues | (17) | (18) | (23) | ||||||||
Regulated Businesses | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 3,367 | 3,220 | 3,070 | ||||||||
Other operating income | 17 | 35 | 24 | ||||||||
Alternative revenue programs | 9 | 25 | 16 | ||||||||
Lease contract revenue | 8 | 10 | 7 | ||||||||
Operating revenues | 3,384 | 3,255 | 3,094 | ||||||||
Regulated Businesses | Water Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 3,133 | 3,003 | 2,867 | ||||||||
Other operating income | 0 | 0 | 1 | ||||||||
Operating revenues | 3,133 | 3,003 | 2,868 | ||||||||
Regulated Businesses | Water Services | Residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 1,935 | 1,895 | 1,734 | ||||||||
Other operating income | 0 | 0 | 1 | ||||||||
Operating revenues | 1,935 | 1,895 | 1,735 | ||||||||
Regulated Businesses | Water Services | Commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 676 | 627 | 639 | ||||||||
Other operating income | 0 | 0 | 0 | ||||||||
Operating revenues | 676 | 627 | 639 | ||||||||
Regulated Businesses | Water Services | Fire Service | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 151 | 147 | 142 | ||||||||
Operating revenues | 151 | 147 | 142 | ||||||||
Regulated Businesses | Water Services | Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 141 | 133 | 138 | ||||||||
Operating revenues | 141 | 133 | 138 | ||||||||
Regulated Businesses | Water Services | Public and Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 230 | 201 | 214 | ||||||||
Other operating income | 0 | 0 | 0 | ||||||||
Operating revenues | 230 | 201 | 214 | ||||||||
Regulated Businesses | Wastewater Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 208 | 185 | 167 | ||||||||
Operating revenues | 208 | 185 | 167 | ||||||||
Regulated Businesses | Wastewater Services | Residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 151 | 134 | 119 | ||||||||
Operating revenues | 151 | 134 | 119 | ||||||||
Regulated Businesses | Wastewater Services | Commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 37 | 34 | 31 | ||||||||
Operating revenues | 37 | 34 | 31 | ||||||||
Regulated Businesses | Wastewater Services | Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 4 | 3 | 3 | ||||||||
Operating revenues | 4 | 3 | 3 | ||||||||
Regulated Businesses | Wastewater Services | Public and Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 16 | 14 | 14 | ||||||||
Operating revenues | 16 | 14 | 14 | ||||||||
Regulated Businesses | Miscellaneous Utility Charge | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 26 | 32 | 36 | ||||||||
Operating revenues | 26 | 32 | 36 | ||||||||
Market-Based Businesses | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contract with customer | 563 | 540 | 539 | ||||||||
Operating revenues | $ 563 | $ 540 | $ 539 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Contract assets: | |||
Contract assets | $ 71 | $ 39 | $ 13 |
Additions | 71 | 60 | |
Transfers to accounts receivable, net | 39 | 34 | |
Contract liabilities: | |||
Contract liability | 19 | 35 | $ 27 |
Additions | 152 | 120 | |
Transfers to operating revenues | $ 168 | $ 112 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligations (Details) - Market-Based Businesses $ in Millions | Dec. 31, 2021USD ($) |
U.S. Government | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 6,200 |
Municipalities and Commercial | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 584 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) connection in Thousands, $ in Millions | Jan. 01, 2022USD ($)connection | Dec. 28, 2021USD ($) | Dec. 09, 2021USD ($)renewal | Nov. 19, 2021USD ($) | Sep. 23, 2021USD ($) | Apr. 06, 2021USD ($)customer | Mar. 29, 2021USD ($)customer | Dec. 31, 2021USD ($)acquisitioncustomer | Dec. 31, 2020USD ($)acquisition | Dec. 31, 2019USD ($)acquisition | Feb. 04, 2022USD ($) | Apr. 30, 2021USD ($) |
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Number of acquisitions | acquisition | 23 | 23 | 21 | |||||||||
Consideration transferred | $ 112 | $ 135 | $ 235 | |||||||||
Assets | 114 | 159 | 237 | |||||||||
Liabilities | 2 | 29 | ||||||||||
Contributions in aid of construction | 21 | 5 | ||||||||||
Debt assumed | 7 | |||||||||||
Goodwill | $ 1,139 | $ 1,504 | $ 1,540 | |||||||||
New York Subsidiary | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Subsequent Event | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Purchase price | $ 608 | |||||||||||
Number of connections | connection | 127 | |||||||||||
Michigan American Water Company | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Subsequent Event | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Consideration | $ 6 | |||||||||||
Homeowner Services Group | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Consideration | $ 1,275 | |||||||||||
Gain on sale, pretax | 748 | |||||||||||
Proceeds from divestiture of businesses | 480 | |||||||||||
Contingent consideration receivable | $ 75 | |||||||||||
Revenue sharing agreement, term | 15 years | |||||||||||
Revenue sharing agreement, number of renewals | renewal | 2 | |||||||||||
Revenue sharing agreement, renewals term | 5 years | |||||||||||
Homeowner Services Group | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Secured Seller Promissory Note | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Debt instrument, face amount | $ 720 | |||||||||||
Debt instrument, term | 5 years | |||||||||||
Interest rate | 7.00% | |||||||||||
Homeowner Services Group | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Secured Seller Promissory Note | Minimum | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Default premium, percentage | 105.50% | |||||||||||
Homeowner Services Group | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Secured Seller Promissory Note | Maximum | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Default premium, percentage | 107.50% | |||||||||||
Regulated Businesses | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Number of acquisitions | acquisition | 2 | 3 | ||||||||||
Goodwill | $ 5 | $ 3 | ||||||||||
Water and Wastewater Services | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Number of customers In service | customer | 20,000 | |||||||||||
Home Warranty Services | Homeowner Services Group | Disposal Group, Disposed of by Sale, Not Discontinued Operations | On-Bill Arrangement | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Revenue sharing agreement, percentage of revenue to be received | 10.00% | |||||||||||
Home Warranty Services | Homeowner Services Group | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Future On-Bill Arrangement | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Revenue sharing agreement, percentage of revenue to be received | 15.00% | |||||||||||
East Pasadena Water Company | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Consideration transferred | $ 34 | |||||||||||
Waterwaste System Assets . Valley Township Pennsylvania | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Consideration transferred | $ 21 | |||||||||||
Lowell Water System, Indiana | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Consideration transferred | $ 25 | |||||||||||
Pennsylvania American Water Company | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Consideration transferred | $ 235 | |||||||||||
Number of customers In service | customer | 45,000 | |||||||||||
Deposit paid | $ 20 | |||||||||||
New Jersey American Water | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Consideration transferred | $ 22 | |||||||||||
Number of customers In service | customer | 3,000 | |||||||||||
New Jersey American Water | Wastewater Services | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Number of customers In service | customer | 1,500 | |||||||||||
New Jersey American Water | Water Services | ||||||||||||
Business Combinations, Asset Acquisition And Divestitures [Line Items] | ||||||||||||
Number of customers In service | customer | 1,500 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Components of Assets Held-for-sale (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||
Liabilities related to assets held for sale | $ 83 | $ 137 |
New York Subsidiary | Disposal Group, Assets Held-for-sale, Not Discontinued Operations | ||
Business Acquisition [Line Items] | ||
Property, plant and equipment | 556 | |
Current assets | 18 | |
Regulatory assets | 76 | |
Goodwill | 27 | |
Other assets | 6 | |
Assets held for sale | 683 | |
Current liabilities | 13 | |
Regulatory liabilities | 47 | |
Other liabilities | 23 | |
Liabilities related to assets held for sale | $ 83 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Major Classes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Public Utility, Property, Plant and Equipment [Line Items] | ||
Construction work in progress | $ 934 | $ 837 |
Total utility plant | 27,287 | 25,408 |
Nonutility property | 126 | 211 |
Less: Nonutility plant included in assets held for sale | 0 | (5) |
Total property, plant and equipment | $ 27,413 | 25,614 |
Weighted Average Useful Life | 6 years | |
Minimum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 3 years | |
Maximum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 50 years | |
Utility Plant | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Less: Utility plant included in assets held for sale | $ (664) | (646) |
Utility Plant | Land and other non-depreciable assets | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Utility plant excluding Construction work in progress | 210 | 174 |
Utility Plant | Sources of supply | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Utility plant excluding Construction work in progress | $ 938 | 897 |
Weighted Average Useful Life | 46 years | |
Utility Plant | Sources of supply | Minimum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 2 years | |
Utility Plant | Sources of supply | Maximum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 127 years | |
Utility Plant | Treatment and pumping facilities | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Utility plant excluding Construction work in progress | $ 4,198 | 3,984 |
Weighted Average Useful Life | 39 years | |
Utility Plant | Treatment and pumping facilities | Minimum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 3 years | |
Utility Plant | Treatment and pumping facilities | Maximum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 111 years | |
Utility Plant | Transmission and distribution facilities | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Utility plant excluding Construction work in progress | $ 12,308 | 11,457 |
Weighted Average Useful Life | 69 years | |
Utility Plant | Transmission and distribution facilities | Minimum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 9 years | |
Utility Plant | Transmission and distribution facilities | Maximum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 130 years | |
Utility Plant | Services, meters and fire hydrants | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Utility plant excluding Construction work in progress | $ 4,888 | 4,555 |
Weighted Average Useful Life | 31 years | |
Utility Plant | Services, meters and fire hydrants | Minimum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 5 years | |
Utility Plant | Services, meters and fire hydrants | Maximum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 90 years | |
Utility Plant | General structures and equipment | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Utility plant excluding Construction work in progress | $ 2,200 | 2,003 |
Weighted Average Useful Life | 15 years | |
Utility Plant | General structures and equipment | Minimum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 1 year | |
Utility Plant | General structures and equipment | Maximum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 109 years | |
Utility Plant | Waste collection | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Utility plant excluding Construction work in progress | $ 1,363 | 1,288 |
Weighted Average Useful Life | 58 years | |
Utility Plant | Waste collection | Minimum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 5 years | |
Utility Plant | Waste collection | Maximum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 113 years | |
Utility Plant | Waste treatment, pumping and disposal | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Utility plant excluding Construction work in progress | $ 912 | $ 859 |
Weighted Average Useful Life | 38 years | |
Utility Plant | Waste treatment, pumping and disposal | Minimum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 2 years | |
Utility Plant | Waste treatment, pumping and disposal | Maximum | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Range of Remaining Useful Lives | 139 years |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 550 | $ 520 | $ 508 |
Provision for depreciation, percentage of aggregate average depreciable asset | 2.77% | 2.82% | 2.96% |
Capital expenditures acquired on account but unpaid as of year end | $ 292 | $ 221 | $ 235 |
Investment tax credit | $ 164 | ||
Other Current Assets | |||
Property, Plant and Equipment [Line Items] | |||
Investment tax credit, receivable | 49 | ||
Other Long-term Assets | |||
Property, Plant and Equipment [Line Items] | |||
Investment tax credit, receivable | $ 115 |
Allowance for Uncollectible A_3
Allowance for Uncollectible Accounts - Schedule of Allowances for Uncollectible Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ (60) | $ (41) | $ (45) |
Amounts charged to expense | (37) | (34) | (28) |
Amounts written off | 17 | 12 | 32 |
Less: Allowance for uncollectible accounts included in assets held for sale | 5 | 3 | 0 |
Ending balance | $ (75) | $ (60) | $ (41) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Changes in Goodwill Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Cost, beginning balance | $ 3,944 | $ 3,980 |
Accumulated Impairment, beginning balance | (2,440) | (2,440) |
Total Net, beginning balance | 1,504 | 1,540 |
Goodwill from acquisitions | 5 | |
Measurement period adjustments | (7) | (2) |
Less: Goodwill included in assets held for sale | (39) | |
Goodwill included in assets held for sale | 12 | |
Goodwill reduced through sale of HOS | (370) | |
Cost, ending balance | 3,579 | 3,944 |
Accumulated Impairment, ending balance | (2,440) | (2,440) |
Total Net, ending balance | 1,139 | 1,504 |
Regulated Businesses | ||
Goodwill [Roll Forward] | ||
Total Net, beginning balance | 5 | 3 |
Total Net, ending balance | 5 | |
Operating Segments | Regulated Businesses | ||
Goodwill [Roll Forward] | ||
Cost, beginning balance | 3,461 | 3,497 |
Accumulated Impairment, beginning balance | (2,332) | (2,332) |
Goodwill from acquisitions | 5 | |
Measurement period adjustments | (7) | (2) |
Less: Goodwill included in assets held for sale | (39) | |
Goodwill included in assets held for sale | 12 | |
Cost, ending balance | 3,466 | 3,461 |
Accumulated Impairment, ending balance | (2,332) | (2,332) |
Operating Segments | Market-Based Businesses | ||
Goodwill [Roll Forward] | ||
Cost, beginning balance | 483 | 483 |
Accumulated Impairment, beginning balance | (108) | (108) |
Goodwill reduced through sale of HOS | (370) | |
Cost, ending balance | 113 | 483 |
Accumulated Impairment, ending balance | $ (108) | $ (108) |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)acquisition | Dec. 31, 2020USD ($)acquisition | Dec. 31, 2019USD ($)acquisition | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill reduced through sale of HOS | $ 370,000,000 | ||
Goodwill from acquisitions | $ 5,000,000 | ||
Number of acquisitions | acquisition | 23 | 23 | 21 |
Finite-lived intangible assets, amortization | $ 9,000,000 | $ 12,000,000 | $ 14,000,000 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets | 0 | 78,000,000 | |
Finite-lived intangible assets, accumulated amortization | 29,000,000 | ||
Finite-lived intangible assets, amortization | 7,000,000 | ||
Other intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets | 0 | 13,000,000 | |
Finite-lived intangible assets, accumulated amortization | $ 7,000,000 | ||
Finite-lived intangible assets, amortization | 2,000,000 | ||
Regulated Businesses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Number of acquisitions | acquisition | 2 | 3 | |
Operating Segments | Market-Based Businesses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill reduced through sale of HOS | 370,000,000 | ||
Operating Segments | Market-Based Businesses | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Homeowner Services Group | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill reduced through sale of HOS | $ 370,000,000 | ||
Operating Segments | Regulated Businesses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill from acquisitions | $ 5,000,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 09, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 28, 2015 |
Stockholders Equity [Line Items] | |||||
Shares of common stock repurchased (in shares) | 0 | 0 | |||
Share of common stock available for repurchase (in shares) | 5,100,000 | ||||
Dividends paid | $ 428 | $ 389 | $ 353 | ||
Dividends declared per common share (USD per share) | $ 0.6025 | $ 2.41 | $ 2.20 | $ 2 | |
Maximum | |||||
Stockholders Equity [Line Items] | |||||
Shares available under the program to purchase outstanding common stock (in shares) | 10,000,000 | ||||
DRIP | |||||
Stockholders Equity [Line Items] | |||||
Shares available for grant (in shares) | 5,100,000 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | $ 6,454 | $ 6,121 | $ 5,864 |
Other comprehensive income (loss) before reclassification | 0 | (16) | |
Amounts reclassified from accumulated other comprehensive loss | 4 | 3 | |
Net other comprehensive income (loss) | 4 | (13) | (2) |
Ending balance | 7,298 | 6,454 | 6,121 |
Employee Benefit Plan Funded Status | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (106) | (94) | |
Other comprehensive income (loss) before reclassification | (1) | (12) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Net other comprehensive income (loss) | (1) | (12) | |
Ending balance | (107) | (106) | (94) |
Amortization of Prior Service Cost | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | 1 | 1 | |
Other comprehensive income (loss) before reclassification | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Net other comprehensive income (loss) | 0 | 0 | |
Ending balance | 1 | 1 | 1 |
Amortization of Actuarial Loss | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | 63 | 60 | |
Other comprehensive income (loss) before reclassification | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 4 | 3 | |
Net other comprehensive income (loss) | 4 | 3 | |
Ending balance | 67 | 63 | 60 |
Gain (Loss) on Cash Flow Hedge | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (7) | (3) | |
Other comprehensive income (loss) before reclassification | 1 | (4) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Net other comprehensive income (loss) | 1 | (4) | |
Ending balance | (6) | (7) | (3) |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (49) | (36) | (34) |
Net other comprehensive income (loss) | 4 | (13) | (2) |
Ending balance | $ (45) | $ (49) | $ (36) |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - $ / shares | 3 Months Ended | |||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Equity [Abstract] | ||||||||||||
Dividends declared per common share (USD per share) | $ 0.6025 | $ 0.6025 | $ 0.6025 | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.455 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation, capitalized amount | $ 0 | $ 0 | $ 0 | |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Unrecognized compensation cost | $ 3,000,000 | |||
Weighted-average period | 1 year 3 months 29 days | |||
Total fair value of shares vested | $ 9,000,000 | 5,000,000 | 4,000,000 | |
Performance Condition | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Unrecognized compensation cost | $ 3,000,000 | |||
Weighted-average period | 8 months 15 days | |||
Total fair value of shares vested | $ 22,000,000 | $ 18,000,000 | $ 14,000,000 | |
Historical volatility, stock price, period | 3 years | |||
Expected term | 3 years | |||
2017 Omnibus Equity Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total shares authorized for grant (in shares) | 7,200,000 | |||
Shares available for grant (in shares) | 6,500,000 | |||
2017 Omnibus Equity Compensation Plan | Restricted Stock Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | 1 year | 1 year | |
Stock distribution period | 30 days | |||
2017 Omnibus Equity Compensation Plan | Restricted Stock Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | 3 years | 3 years | |
Stock distribution period | 15 months | |||
Nonqualified employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant (in shares) | 1,600,000 | |||
Lesser of fair market value | 85.00% | |||
Stock issuable (in shares) | 2,000,000 | |||
Shares issued (in shares) | 80,000 | 86,000 | 88,000 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 17 | $ 21 | $ 17 |
Income tax benefit | (4) | (5) | (4) |
Stock-based compensation expense, net of tax | 13 | 16 | 13 |
RSUs and PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 15 | 19 | 15 |
Nonqualified employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 2 | $ 2 | $ 2 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Restricted Stock Unit Activity (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Restricted Stock Units Without Performance Restrictions | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested, beginning balance (in shares) | shares | 92 |
Granted (in shares) | shares | 45 |
Vested (in shares) | shares | (76) |
Forfeited (in shares) | shares | (13) |
Non-vested, ending balance (in shares) | shares | 48 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average grant date fair value, non-vested total beginning balance (USD per share) | $ / shares | $ 100.39 |
Weighted-average grant date fair value, granted (USD per share) | $ / shares | 158.54 |
Weighted-average grant date fair value, vested (USD per share) | $ / shares | 122.26 |
Weighted-average grant date fair value, forfeited (USD per share) | $ / shares | 128.93 |
Weighted-average grant date fair value, non-vested total ending balance (USD per share) | $ / shares | $ 112.22 |
Performance Condition | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested, beginning balance (in shares) | shares | 293 |
Granted (in shares) | shares | 145 |
Vested (in shares) | shares | (186) |
Forfeited (in shares) | shares | (20) |
Non-vested, ending balance (in shares) | shares | 232 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average grant date fair value, non-vested total beginning balance (USD per share) | $ / shares | $ 105.70 |
Weighted-average grant date fair value, granted (USD per share) | $ / shares | 128.30 |
Weighted-average grant date fair value, vested (USD per share) | $ / shares | 75.47 |
Weighted-average grant date fair value, forfeited (USD per share) | $ / shares | 159.99 |
Weighted-average grant date fair value, non-vested total ending balance (USD per share) | $ / shares | $ 139.40 |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Weighted-Average Assumptions (Details) - Performance Condition - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 28.59% | 16.65% | 16.80% |
Risk-free interest rate | 0.22% | 1.28% | 2.47% |
Expected life (years) | 3 years | 3 years | 3 years |
Grant date fair value per share (USD per share) | $ 229.22 | $ 159.64 | $ 110.37 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 10,433 | $ 9,688 |
Unamortized debt (discount) premium, net | (9) | (4) |
Unamortized debt issuance costs | (23) | (22) |
Less current portion of long-term debt | (57) | (329) |
Total long-term debt | $ 10,344 | 9,333 |
Other American Water subsidiaries | Mandatorily redeemable preferred stock | Long-term debt | ||
Debt Instrument [Line Items] | ||
Weighted Average Rate | 8.60% | |
Long-term debt | $ 4 | 5 |
Other American Water subsidiaries | Mandatorily redeemable preferred stock | Long-term debt | Minimum | ||
Debt Instrument [Line Items] | ||
Rate | 8.47% | |
Maturity | 2024 | |
Other American Water subsidiaries | Mandatorily redeemable preferred stock | Long-term debt | Maximum | ||
Debt Instrument [Line Items] | ||
Rate | 9.75% | |
Maturity | 2036 | |
Other American Water subsidiaries | Private activity bonds and government funded debt | Fixed rate | Minimum | ||
Debt Instrument [Line Items] | ||
Rate | 0.00% | |
Maturity | 2022 | |
Other American Water subsidiaries | Private activity bonds and government funded debt | Fixed rate | Maximum | ||
Debt Instrument [Line Items] | ||
Rate | 5.00% | |
Maturity | 2047 | |
Other American Water subsidiaries | Private activity bonds and government funded debt | Fixed rate | Long-term debt | ||
Debt Instrument [Line Items] | ||
Weighted Average Rate | 1.70% | |
Long-term debt | $ 739 | 735 |
Other American Water subsidiaries | Private activity bonds and government funded debt | Fixed rate | Long-term debt | Minimum | ||
Debt Instrument [Line Items] | ||
Rate | 0.00% | |
Maturity | 2022 | |
Other American Water subsidiaries | Private activity bonds and government funded debt | Fixed rate | Long-term debt | Maximum | ||
Debt Instrument [Line Items] | ||
Rate | 5.50% | |
Maturity | 2048 | |
Other American Water subsidiaries | Mortgage bonds | Fixed rate | Long-term debt | ||
Debt Instrument [Line Items] | ||
Weighted Average Rate | 7.36% | |
Long-term debt | $ 534 | 565 |
Other American Water subsidiaries | Mortgage bonds | Fixed rate | Long-term debt | Minimum | ||
Debt Instrument [Line Items] | ||
Rate | 6.35% | |
Maturity | 2023 | |
Other American Water subsidiaries | Mortgage bonds | Fixed rate | Long-term debt | Maximum | ||
Debt Instrument [Line Items] | ||
Rate | 9.19% | |
Maturity | 2039 | |
Other American Water subsidiaries | Finance lease obligation | Long-term debt | ||
Debt Instrument [Line Items] | ||
Rate | 12.25% | |
Weighted Average Rate | 12.25% | |
Maturity | 2026 | |
Long-term debt | $ 1 | 1 |
American Water Capital Corp. (AWCC) | Senior notes | Fixed rate | Minimum | ||
Debt Instrument [Line Items] | ||
Rate | 2.30% | |
Maturity | 2031 | |
American Water Capital Corp. (AWCC) | Senior notes | Fixed rate | Maximum | ||
Debt Instrument [Line Items] | ||
Rate | 3.25% | |
Maturity | 2051 | |
American Water Capital Corp. (AWCC) | Senior notes | Fixed rate | Long-term debt | ||
Debt Instrument [Line Items] | ||
Weighted Average Rate | 3.83% | |
Long-term debt | $ 8,965 | 8,191 |
American Water Capital Corp. (AWCC) | Senior notes | Fixed rate | Long-term debt | Minimum | ||
Debt Instrument [Line Items] | ||
Rate | 2.30% | |
Maturity | 2023 | |
American Water Capital Corp. (AWCC) | Senior notes | Fixed rate | Long-term debt | Maximum | ||
Debt Instrument [Line Items] | ||
Rate | 8.27% | |
Maturity | 2051 | |
American Water Capital Corp. (AWCC) | Private activity bonds and government funded debt | Fixed rate | Long-term debt | ||
Debt Instrument [Line Items] | ||
Weighted Average Rate | 1.63% | |
Long-term debt | $ 190 | $ 191 |
American Water Capital Corp. (AWCC) | Private activity bonds and government funded debt | Fixed rate | Long-term debt | Minimum | ||
Debt Instrument [Line Items] | ||
Rate | 0.60% | |
Maturity | 2023 | |
American Water Capital Corp. (AWCC) | Private activity bonds and government funded debt | Fixed rate | Long-term debt | Maximum | ||
Debt Instrument [Line Items] | ||
Rate | 2.45% | |
Maturity | 2031 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | Jun. 14, 2021USD ($) | May 10, 2021USD ($)treasuryLockAgreement | May 06, 2021USD ($)treasuryLockAgreement | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 10,433,000,000 | $ 9,688,000,000 | ||||
Line of credit facility consolidated debt to consolidated capitalization ratio | 0.60 | |||||
Redeemable debt, amount outstanding | $ 859,000,000 | |||||
Weighted average interest rate | 1.84% | |||||
Debt issuance cost | $ 11,000,000 | |||||
Proceeds from long-term debt | 1,118,000,000 | 1,334,000,000 | $ 1,530,000,000 | |||
Short-term debt | 584,000,000 | 1,282,000,000 | ||||
Ineffectiveness recognized on hedge instruments | 0 | $ 0 | ||||
Designated as Hedging Instrument | Treasury lock agreements | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, number of instruments held | treasuryLockAgreement | 2 | |||||
Debt instrument, term | 10 years | |||||
Aggregate notional amount | $ 275,000,000 | |||||
Derivative, average fixed interest rate | 1.58% | |||||
Derivative, number of instruments terminated | treasuryLockAgreement | 2 | |||||
Amortization period for forward swap with interest | 10 years | |||||
Designated as Hedging Instrument | Treasury lock agreement, $125 million | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate notional amount | $ 125,000,000 | |||||
Designated as Hedging Instrument | Treasury lock agreement, $150 million | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate notional amount | $ 150,000,000 | |||||
Designated as Hedging Instrument | Maximum | Treasury lock agreements | ||||||
Debt Instrument [Line Items] | ||||||
Net gain from terminated forward swaps | $ 1,000,000 | |||||
American Water Capital Corp. (AWCC) | ||||||
Debt Instrument [Line Items] | ||||||
Payments of make-whole premium on early debt redemption | $ 15,000,000 | |||||
Private activity bonds and government funded debt | Collateralized Debt Obligations | Other American Water subsidiaries | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 738,000,000 | |||||
Line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility consolidated debt to consolidated capitalization ratio | 0.70 | |||||
Senior notes | American Water Capital Corp. (AWCC) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | 1,100,000,000 | |||||
Proceeds from long-term debt | 1,086,000,000 | |||||
Senior notes | Senior Note 2.30% Due 2031 | American Water Capital Corp. (AWCC) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 550,000,000 | |||||
Interest rate | 2.30% | |||||
Senior notes | Senior Note 3.25% Due 2051 | American Water Capital Corp. (AWCC) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 550,000,000 | |||||
Interest rate | 3.25% | |||||
Senior notes | Senior Note, Series D, 5.77% Due 2021 | American Water Capital Corp. (AWCC) | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 5.77% | |||||
Repayments of debt | $ 251,000,000 | |||||
Short-term debt | $ 0 | |||||
Senior notes | Senior Note, Series H, 6.55% Due 2023 | American Water Capital Corp. (AWCC) | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 6.55% | |||||
Repayments of debt | $ 76,000,000 | |||||
Long-term debt | $ 14,000,000 |
Long-Term Debt - Future Sinking
Long-Term Debt - Future Sinking Fund Payments and Debt Maturities (Details) $ in Millions | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 57 |
2023 | 280 |
2024 | 474 |
2025 | 597 |
2026 | 441 |
Thereafter | $ 8,584 |
Long-Term Debt - Issued (Detail
Long-Term Debt - Issued (Details) - USD ($) $ in Millions | May 10, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||
Total issuances | $ 1,118 | $ 1,334 | $ 1,530 | |
Other American Water subsidiaries | Private activity bonds and government funded debt | Fixed rate | ||||
Debt Instrument [Line Items] | ||||
Total issuances | $ 18 | |||
Other American Water subsidiaries | Private activity bonds and government funded debt | Fixed rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Rate | 0.00% | |||
Maturity | 2022 | |||
Other American Water subsidiaries | Private activity bonds and government funded debt | Fixed rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Rate | 5.00% | |||
Maturity | 2047 | |||
Other American Water subsidiaries | Private activity bonds and government funded debt | Fixed rate | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Rate | 0.04% | |||
American Water Capital Corp. (AWCC) | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Total issuances | $ 1,086 | |||
American Water Capital Corp. (AWCC) | Senior notes | Fixed rate | ||||
Debt Instrument [Line Items] | ||||
Total issuances | $ 1,100 | |||
American Water Capital Corp. (AWCC) | Senior notes | Fixed rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Rate | 2.30% | |||
Maturity | 2031 | |||
American Water Capital Corp. (AWCC) | Senior notes | Fixed rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Rate | 3.25% | |||
Maturity | 2051 | |||
American Water Capital Corp. (AWCC) | Senior notes | Fixed rate | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Rate | 2.78% |
Long-Term Debt - Retired Throug
Long-Term Debt - Retired Through Optional Redemptions or Payments at Maturities (Details) - Debt retired during the year $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |
Total retirements and redemptions | $ 372 |
Other American Water subsidiaries | Mandatorily redeemable preferred stock | |
Debt Instrument [Line Items] | |
Total retirements and redemptions | $ 1 |
Other American Water subsidiaries | Mandatorily redeemable preferred stock | Minimum | |
Debt Instrument [Line Items] | |
Rate | 8.49% |
Maturity | 2022 |
Other American Water subsidiaries | Mandatorily redeemable preferred stock | Maximum | |
Debt Instrument [Line Items] | |
Rate | 8.49% |
Maturity | 2022 |
Other American Water subsidiaries | Mandatorily redeemable preferred stock | Weighted Average | |
Debt Instrument [Line Items] | |
Rate | 8.49% |
Other American Water subsidiaries | Private activity bonds and government funded debt | Fixed rate | |
Debt Instrument [Line Items] | |
Total retirements and redemptions | $ 13 |
Other American Water subsidiaries | Private activity bonds and government funded debt | Fixed rate | Minimum | |
Debt Instrument [Line Items] | |
Rate | 0.00% |
Maturity | 2021 |
Other American Water subsidiaries | Private activity bonds and government funded debt | Fixed rate | Maximum | |
Debt Instrument [Line Items] | |
Rate | 5.50% |
Maturity | 2048 |
Other American Water subsidiaries | Private activity bonds and government funded debt | Fixed rate | Weighted Average | |
Debt Instrument [Line Items] | |
Rate | 1.38% |
Other American Water subsidiaries | Private activity mortgage bonds | |
Debt Instrument [Line Items] | |
Maturity | 2021 |
Total retirements and redemptions | $ 31 |
Other American Water subsidiaries | Private activity mortgage bonds | Minimum | |
Debt Instrument [Line Items] | |
Rate | 9.13% |
Other American Water subsidiaries | Private activity mortgage bonds | Maximum | |
Debt Instrument [Line Items] | |
Rate | 9.69% |
Other American Water subsidiaries | Private activity mortgage bonds | Weighted Average | |
Debt Instrument [Line Items] | |
Rate | 9.52% |
American Water Capital Corp. (AWCC) | Private activity bonds and government funded debt | Fixed rate | |
Debt Instrument [Line Items] | |
Total retirements and redemptions | $ 327 |
American Water Capital Corp. (AWCC) | Private activity bonds and government funded debt | Fixed rate | Minimum | |
Debt Instrument [Line Items] | |
Rate | 1.79% |
Maturity | 2021 |
American Water Capital Corp. (AWCC) | Private activity bonds and government funded debt | Fixed rate | Maximum | |
Debt Instrument [Line Items] | |
Rate | 6.55% |
Maturity | 2031 |
American Water Capital Corp. (AWCC) | Private activity bonds and government funded debt | Fixed rate | Weighted Average | |
Debt Instrument [Line Items] | |
Rate | 5.94% |
Short-Term Debt - Additional In
Short-Term Debt - Additional Information (Details) | Mar. 20, 2020 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Short-term Debt [Line Items] | |||
Total availability | $ 2,250,000,000 | $ 2,250,000,000 | |
Availability on revolving credit facility | 1,590,000,000 | 1,388,000,000 | |
Outstanding debt | 584,000,000 | 786,000,000 | |
Proceeds from short-term borrowings with maturities greater than three months | $ 0 | ||
Line of credit facility consolidated debt to consolidated capitalization ratio, required | 0.70 | ||
Line of credit facility consolidated debt to consolidated capitalization ratio | 0.60 | ||
Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Availability on revolving credit facility | $ 1,590,000,000 | 1,388,000,000 | |
Revolving Credit Facility | Letter of Credit | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity | 150,000,000 | 150,000,000 | |
Letters of credit outstanding, amount | 76,000,000 | $ 76,000,000 | |
American Water Capital Corp. (AWCC) | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity | $ 500,000,000 | ||
Interest rate during period | 0.25% | 1.16% | |
American Water Capital Corp. (AWCC) | Term loan | |||
Short-term Debt [Line Items] | |||
Proceeds from lines of credit | $ 500,000,000 | ||
American Water Capital Corp. (AWCC) | Term loan | London Interbank Offered Rate (LIBOR) | |||
Short-term Debt [Line Items] | |||
Debt, basis spread on variable rate | 0.80% | ||
American Water Capital Corp. (AWCC) | Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Proceeds from lines of credit | $ 0 |
Short-Term Debt - Schedule of C
Short-Term Debt - Schedule of Company's Aggregate Credit Facility Commitments, Commercial Paper Limit, Letter of Credit Availability and Availability Capacity (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Total availability | $ 2,100 | $ 2,100 |
Total availability | 2,250 | 2,250 |
Outstanding debt | (584) | (786) |
Outstanding debt | (660) | (862) |
Remaining availability | 1,516 | 1,314 |
Availability on Revolving Credit Facility | 1,590 | 1,388 |
Revolving Credit Facility | ||
Short-term Debt [Line Items] | ||
Availability on Revolving Credit Facility | 1,590 | 1,388 |
Revolving Credit Facility | Letter of Credit | ||
Short-term Debt [Line Items] | ||
Total availability | 150 | 150 |
Outstanding debt | (76) | (76) |
Remaining availability | $ 74 | $ 74 |
Short-Term Debt - Schedule of A
Short-Term Debt - Schedule of Availability Liquidity (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Cash and cash equivalents | $ 116 | $ 547 |
Availability on Revolving Credit Facility | 1,590 | 1,388 |
Total Available Liquidity | 1,706 | 1,935 |
Revolving Credit Facility | ||
Short-term Debt [Line Items] | ||
Availability on Revolving Credit Facility | $ 1,590 | $ 1,388 |
Short-Term Debt - Schedule of S
Short-Term Debt - Schedule of Short-Term Borrowings Activity (Details) - American Water Capital Corp. (AWCC) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | ||
Average borrowings | $ 910 | $ 1,047 |
Maximum borrowings outstanding | $ 1,647 | $ 2,172 |
Weighted average interest rates, computed on daily basis | 0.25% | 1.16% |
Weighted average interest rates, as of December 31 | 0.20% | 0.53% |
General Taxes - Components of G
General Taxes - Components of General Tax Expense from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
General Taxes [Abstract] | |||
Property and capital stock | $ 149 | $ 140 | $ 124 |
Gross receipts and franchise | 121 | 116 | 110 |
Payroll | 39 | 36 | 35 |
Other general | 12 | 11 | 11 |
Total general taxes | $ 321 | $ 303 | $ 280 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current income taxes: | |||
State | $ 72 | $ 8 | $ 4 |
Federal | 75 | 0 | 0 |
Total current income taxes | 147 | 8 | 4 |
Deferred income taxes: | |||
State | 10 | 49 | 54 |
Federal | 221 | 159 | 155 |
Amortization of deferred investment tax credits | (1) | (1) | (1) |
Total deferred income taxes | 230 | 207 | 208 |
Provision for income taxes | $ 377 | $ 215 | $ 212 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense from Continuing Operations (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax at statutory rate | 21.00% | 21.00% | 21.00% |
State taxes, net of federal taxes | 3.90% | 4.80% | 5.40% |
EADIT | (3.60%) | (2.10%) | (0.90%) |
Tax impact due to the sale of HOS | 1.60% | 0.00% | 0.00% |
Other, net | 0.10% | (0.40%) | (0.10%) |
Effective tax rate | 23.00% | 23.30% | 25.40% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Liability from Continuing Operations (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||||
Advances and contributions | $ 439 | $ 424 | ||
Tax losses and credits | 10 | 65 | ||
Regulatory income tax assets | 301 | 329 | ||
Pension and other postretirement benefits | 50 | 100 | ||
Other | 144 | 165 | ||
Total deferred tax assets | 944 | 1,083 | ||
Valuation allowance | (10) | (19) | $ (21) | $ (14) |
Total deferred tax assets, net of allowance | 934 | 1,064 | ||
Deferred tax liabilities: | ||||
Property, plant and equipment | 3,087 | 2,913 | ||
Deferred pension and other postretirement benefits | 69 | 97 | ||
Other | 180 | 216 | ||
Total deferred tax liabilities | 3,336 | 3,226 | ||
Less: Deferred tax liabilities included in liabilities related to assets held for sale | 0 | 69 | ||
Total deferred tax liabilities, net of deferred tax assets | $ (2,402) | $ (2,093) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Examination [Line Items] | ||
Unrecognized tax benefit excluding interest and penalties, that would affect the effective tax rate | $ 10,000,000 | |
Federal | ||
Income Tax Examination [Line Items] | ||
Net operating loss carryforwards | 0 | $ 366,000,000 |
State | ||
Income Tax Examination [Line Items] | ||
Net operating loss carryforwards | $ 123,000,000 | $ 357,000,000 |
Income Taxes - Changes in Gross
Income Taxes - Changes in Gross Liability Excluding Interest and Penalties for Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 122 | $ 110 |
Increases in current period tax positions | 23 | 18 |
Decreases in prior period measurement of tax positions | (5) | (6) |
Ending balance | $ 140 | $ 122 |
Income Taxes - Changes in Valua
Income Taxes - Changes in Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Valuation Allowances [Roll Forward] | |||
Beginning balance | $ 19 | $ 21 | $ 14 |
Increases (decreases) in current period tax positions | (9) | (2) | 7 |
Ending balance | $ 10 | $ 19 | $ 21 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution, percent | 5.25% | ||
Minimum reduction of expected future service of plan participants | 10.00% | ||
Cumulative gains losses as percentage of benefit obligations or plan assets | 10.00% | ||
Cost of contribution plan | $ 14 | $ 12 | $ 12 |
Additional cost of contribution plan | $ 16 | $ 15 | $ 13 |
Pension Plan Asset | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets percentage | 6.50% | ||
Postretirement Benefit Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected blended return on weighted assets percentage | 3.67% |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Changes in Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
U.S. small cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 124 | ||
Percentage of Plan Assets | 6.00% | ||
U.S. small cap | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 124 | ||
Pension Plan Asset | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 100.00% | 100.00% | |
Fair value of plan assets | $ 1,991 | $ 1,990 | $ 1,747 |
Percentage of Plan Assets | 100.00% | 100.00% | |
Pension Plan Asset | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 647 | $ 810 | |
Pension Plan Asset | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,008 | 824 | |
Pension Plan Asset | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 336 | 356 | |
Pension Plan Asset | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 54 | $ 78 | |
Percentage of Plan Assets | 3.00% | 4.00% | |
Pension Plan Asset | Cash | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 54 | $ 78 | |
Pension Plan Asset | Equity securities: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 50.00% | 50.00% | |
Pension Plan Asset | U.S. large cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 217 | $ 420 | |
Percentage of Plan Assets | 11.00% | 21.00% | |
Pension Plan Asset | U.S. large cap | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 217 | $ 420 | |
Pension Plan Asset | U.S. small cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 113 | ||
Percentage of Plan Assets | 6.00% | ||
Pension Plan Asset | U.S. small cap | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 113 | ||
Pension Plan Asset | U.S. small cap | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pension Plan Asset | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 516 | $ 367 | |
Percentage of Plan Assets | 26.00% | 18.00% | |
Pension Plan Asset | International | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 7 | $ 8 | |
Pension Plan Asset | International | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 354 | 169 | |
Pension Plan Asset | International | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 155 | 190 | |
Pension Plan Asset | Real estate fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 141 | $ 120 | |
Percentage of Plan Assets | 7.00% | 6.00% | |
Pension Plan Asset | Real estate fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 141 | $ 120 | |
Pension Plan Asset | REITs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 9 | $ 7 | |
Percentage of Plan Assets | 0.00% | 0.00% | |
Pension Plan Asset | REITs | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 9 | $ 7 | |
Pension Plan Asset | Fixed income securities: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 50.00% | 50.00% | |
Pension Plan Asset | U.S. Treasury securities and government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 256 | $ 171 | |
Percentage of Plan Assets | 13.00% | 9.00% | |
Pension Plan Asset | U.S. Treasury securities and government bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 249 | $ 163 | |
Pension Plan Asset | U.S. Treasury securities and government bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7 | 8 | |
Pension Plan Asset | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 601 | $ 594 | |
Percentage of Plan Assets | 30.00% | 30.00% | |
Pension Plan Asset | Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 601 | $ 594 | |
Pension Plan Asset | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 9 | $ 9 | |
Percentage of Plan Assets | 0.00% | 0.00% | |
Pension Plan Asset | Mortgage-backed securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 9 | $ 9 | |
Pension Plan Asset | Municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 25 | $ 34 | |
Percentage of Plan Assets | 1.00% | 2.00% | |
Pension Plan Asset | Municipal bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 25 | $ 34 | |
Pension Plan Asset | Treasury futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 10 | |
Percentage of Plan Assets | 0.00% | 1.00% | |
Pension Plan Asset | Treasury futures | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 10 | |
Pension Plan Asset | Long duration bond fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 10 | $ 10 | |
Percentage of Plan Assets | 1.00% | 1.00% | |
Pension Plan Asset | Long duration bond fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 7 | $ 7 | |
Pension Plan Asset | Long duration bond fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 3 | |
Pension Plan Asset | Guarantee annuity contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 40 | $ 46 | |
Percentage of Plan Assets | 2.00% | 2.00% | |
Pension Plan Asset | Guarantee annuity contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 40 | $ 46 | |
Postretirement Benefit Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 100.00% | 100.00% | |
Fair value of plan assets | $ 538 | $ 556 | $ 532 |
Percentage of Plan Assets | 100.00% | 100.00% | |
Postretirement Benefit Plan Assets | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 100.00% | 100.00% | |
Fair value of plan assets | $ 397 | $ 420 | |
Percentage of Plan Assets | 100.00% | 100.00% | |
Postretirement Benefit Plan Assets | Non-bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 100.00% | 100.00% | |
Fair value of plan assets | $ 140 | $ 135 | |
Percentage of Plan Assets | 100.00% | 100.00% | |
Postretirement Benefit Plan Assets | Life VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 100.00% | 100.00% | |
Fair value of plan assets | $ 1 | $ 1 | |
Percentage of Plan Assets | 100.00% | 100.00% | |
Postretirement Benefit Plan Assets | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 405 | $ 425 | |
Postretirement Benefit Plan Assets | Level 1 | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 313 | 339 | |
Postretirement Benefit Plan Assets | Level 1 | Non-bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 91 | 85 | |
Postretirement Benefit Plan Assets | Level 1 | Life VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Postretirement Benefit Plan Assets | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 133 | 131 | |
Postretirement Benefit Plan Assets | Level 2 | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 84 | 81 | |
Postretirement Benefit Plan Assets | Level 2 | Non-bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 49 | 50 | |
Postretirement Benefit Plan Assets | Cash | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 10 | $ 12 | |
Percentage of Plan Assets | 3.00% | 3.00% | |
Postretirement Benefit Plan Assets | Cash | Non-bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 2 | $ 1 | |
Postretirement Benefit Plan Assets | Cash | Life VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1 | ||
Percentage of Plan Assets | 100.00% | ||
Postretirement Benefit Plan Assets | Cash | Level 1 | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 10 | 12 | |
Postretirement Benefit Plan Assets | Cash | Level 1 | Non-bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | $ 1 | |
Postretirement Benefit Plan Assets | Cash | Level 1 | Life VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1 | ||
Postretirement Benefit Plan Assets | Equity securities: | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 4.00% | 4.00% | |
Postretirement Benefit Plan Assets | Equity securities: | Non-bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 60.00% | 60.00% | |
Postretirement Benefit Plan Assets | Equity securities: | Life VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 70.00% | 70.00% | |
Postretirement Benefit Plan Assets | U.S. large cap | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 18 | $ 14 | |
Percentage of Plan Assets | 5.00% | 3.00% | |
Postretirement Benefit Plan Assets | U.S. large cap | Non-bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 54 | $ 51 | |
Percentage of Plan Assets | 39.00% | 38.00% | |
Postretirement Benefit Plan Assets | U.S. large cap | Life VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | |
Percentage of Plan Assets | 0.00% | 0.00% | |
Postretirement Benefit Plan Assets | U.S. large cap | Level 1 | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 18 | $ 14 | |
Postretirement Benefit Plan Assets | U.S. large cap | Level 1 | Non-bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 54 | 51 | |
Postretirement Benefit Plan Assets | U.S. large cap | Level 1 | Life VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefit Plan Assets | International | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1 | ||
Percentage of Plan Assets | 0.00% | ||
Postretirement Benefit Plan Assets | International | Non-bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 35 | $ 33 | |
Percentage of Plan Assets | 25.00% | 24.00% | |
Postretirement Benefit Plan Assets | International | Level 1 | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1 | ||
Postretirement Benefit Plan Assets | International | Level 1 | Non-bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 35 | $ 33 | |
Postretirement Benefit Plan Assets | Fixed income securities: | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 96.00% | 96.00% | |
Postretirement Benefit Plan Assets | Fixed income securities: | Non-bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 40.00% | 40.00% | |
Postretirement Benefit Plan Assets | Fixed income securities: | Life VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 30.00% | 30.00% | |
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 363 | $ 389 | |
Percentage of Plan Assets | 91.00% | 93.00% | |
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Level 1 | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 279 | $ 308 | |
Postretirement Benefit Plan Assets | U.S. Treasury securities and government bonds | Level 2 | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 84 | 81 | |
Postretirement Benefit Plan Assets | Long duration bond fund | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 5 | $ 5 | |
Percentage of Plan Assets | 1.00% | 1.00% | |
Postretirement Benefit Plan Assets | Long duration bond fund | Level 1 | Bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 5 | $ 5 | |
Postretirement Benefit Plan Assets | Core fixed income bond fund | Non-bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 49 | $ 50 | |
Percentage of Plan Assets | 36.00% | 38.00% | |
Postretirement Benefit Plan Assets | Core fixed income bond fund | Life VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 1 | |
Percentage of Plan Assets | 0.00% | 100.00% | |
Postretirement Benefit Plan Assets | Core fixed income bond fund | Level 1 | Life VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 1 | |
Postretirement Benefit Plan Assets | Core fixed income bond fund | Level 2 | Non-bargain VEBA: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 49 | $ 50 |
Employee Benefits - Schedule _2
Employee Benefits - Schedule of Significant Unobservable Inputs (Details) - Pension Plan Asset - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets, beginning balance | $ 1,990 | $ 1,747 |
Actual return on assets | 108 | 314 |
Fair value of plan assets, ending balance | 1,991 | 1,990 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets, beginning balance | 356 | |
Fair value of plan assets, ending balance | 336 | 356 |
Level 3 | Guaranteed Annuity Contracts And Real Estate | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets, beginning balance | 356 | 349 |
Actual return on assets | 41 | 3 |
Purchases, issuances and settlements, net | (61) | 4 |
Fair value of plan assets, ending balance | $ 336 | $ 356 |
Employee Benefits - Schedule _3
Employee Benefits - Schedule of Rollforward Changes in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amounts recognized on the balance sheet: | |||
Noncurrent liability | $ (285) | $ (388) | |
New York Water Service Corporation Pension Plan | |||
Amounts recognized on the balance sheet: | |||
Payment for settlement | 6 | 3 | |
Pension Benefits | |||
Change in benefit obligation: | |||
Benefit obligation, beginning balance | 2,386 | 2,161 | |
Service cost | 36 | 31 | $ 28 |
Interest cost | 64 | 73 | 82 |
Plan participants' contributions | 0 | 0 | |
Plan amendments | 0 | 0 | |
Actuarial loss (gain) | (46) | 233 | |
Settlements | (6) | (3) | |
Gross benefits paid | (140) | (109) | |
Federal subsidy | 0 | 0 | |
Benefit obligation, ending balance | 2,294 | 2,386 | 2,161 |
Change in plan assets: | |||
Fair value of plan assets, beginning balance | 1,990 | 1,747 | |
Actual return on assets | 108 | 314 | |
Employer contributions | 39 | 41 | |
Plan participants' contributions | 0 | 0 | |
Settlements | (6) | (3) | |
Benefits paid | (140) | (109) | |
Fair value of plan assets, ending balance | 1,991 | 1,990 | 1,747 |
Funded status, ending balance | (303) | (396) | |
Amounts recognized on the balance sheet: | |||
Noncurrent asset | 0 | 0 | |
Current liability | (2) | (2) | |
Noncurrent liability | (285) | (388) | |
(Liabilities) assets related to assets held for sale | (16) | (6) | |
Net amount recognized | (303) | (396) | |
Other Benefits | |||
Change in benefit obligation: | |||
Benefit obligation, beginning balance | 382 | 374 | |
Service cost | 4 | 4 | 4 |
Interest cost | 10 | 12 | 15 |
Plan participants' contributions | 2 | 2 | |
Plan amendments | 0 | 5 | |
Actuarial loss (gain) | (26) | 13 | |
Settlements | 0 | 0 | |
Gross benefits paid | (31) | (29) | |
Federal subsidy | 1 | 1 | |
Benefit obligation, ending balance | 342 | 382 | 374 |
Change in plan assets: | |||
Fair value of plan assets, beginning balance | 556 | 532 | |
Actual return on assets | 9 | 53 | |
Employer contributions | 1 | (2) | |
Plan participants' contributions | 2 | 2 | |
Settlements | 0 | 0 | |
Benefits paid | (30) | (29) | |
Fair value of plan assets, ending balance | 538 | 556 | $ 532 |
Funded status, ending balance | 196 | 174 | |
Amounts recognized on the balance sheet: | |||
Noncurrent asset | 193 | 173 | |
Current liability | 0 | 0 | |
Noncurrent liability | (1) | (1) | |
(Liabilities) assets related to assets held for sale | 4 | 2 | |
Net amount recognized | $ 196 | $ 174 |
Employee Benefits - Summary of
Employee Benefits - Summary of Accumulated Other Comprehensive Income and Regulatory Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ 381 | $ 436 |
Prior service credit | (14) | (16) |
Net amount recognized | 367 | 420 |
Regulatory assets (liabilities) | 317 | 366 |
Accumulated other comprehensive income | 50 | 54 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 35 | 49 |
Prior service credit | (186) | (217) |
Net amount recognized | (151) | (168) |
Regulatory assets (liabilities) | (151) | (168) |
Accumulated other comprehensive income | $ 0 | $ 0 |
Employee Benefits - Schedule _4
Employee Benefits - Schedule of Projected Benefit Obligation, Accumulated Benefit Obligation and Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 2,294 | $ 2,386 |
Fair value of plan assets | 1,991 | 1,990 |
Accumulated benefit obligation | 2,138 | 2,188 |
Fair value of plan assets | $ 1,991 | $ 1,990 |
Employee Benefits - Schedule _5
Employee Benefits - Schedule of Expected Cash Flow for Pension and Post Retirement Benefit Plans (Details) $ in Millions | Dec. 31, 2021USD ($) |
To plan trusts | Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions | $ 38 |
To plan trusts | Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions | 0 |
To plan participants | Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions | 2 |
To plan participants | Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions | $ 0 |
Employee Benefits - Schedule _6
Employee Benefits - Schedule of Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 130 |
2023 | 133 |
2024 | 134 |
2025 | 137 |
2026 | 138 |
2027-2031 | 688 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 26 |
2023 | 25 |
2024 | 25 |
2025 | 25 |
2026 | 25 |
2027-2031 | 113 |
Defined Benefit Plan, Expected Future Prescription Drug Subsidy Receipt [Abstract] | |
2022 | 1 |
2023 | 1 |
2024 | 1 |
2025 | 1 |
2026 | 1 |
2027-2031 | $ 3 |
Employee Benefits - Schedule _7
Employee Benefits - Schedule of Significant Assumptions of Pension and Other Postretirement Benefit Plans (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.94% | 2.74% | 3.44% |
Rate of compensation increase | 3.51% | 3.51% | 2.97% |
Discount rate | 2.74% | 3.44% | 4.38% |
Expected return on plan assets | 6.50% | 6.50% | 6.20% |
Rate of compensation increase | 3.51% | 2.97% | 3.00% |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.90% | 2.56% | 3.36% |
Discount rate | 2.56% | 3.36% | 4.32% |
Expected return on plan assets | 3.67% | 3.68% | 3.56% |
Other Benefits | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate, benefit obligations, percentage | 6.00% | 6.25% | 6.50% |
Health care cost trend rate, net periodic costs, percentage | 6.25% | 6.50% | 6.75% |
Other Benefits | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate, benefit obligations, percentage | 5.00% | 5.00% | 5.00% |
Health care cost trend rate, benefit obligation, year | 2026 | 2026 | 2026 |
Health care cost trend rate, net periodic costs, percentage | 5.00% | 5.00% | 5.00% |
Health care cost trend rate, net periodic costs, year | 2026 | 2026 | 2026 |
Employee Benefits - Schedule _8
Employee Benefits - Schedule of Net Periodic Benefit Cost Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Amortization of actuarial loss | $ (4) | $ (3) | $ (4) |
Pension Benefits | |||
Components of net periodic pension benefit cost and other postretirement benefit cost | |||
Service cost | 36 | 31 | 28 |
Interest cost | 64 | 73 | 82 |
Expected return on plan assets | (126) | (111) | (91) |
Amortization of prior service (credit) cost | (3) | (3) | (3) |
Amortization of actuarial loss | 27 | 30 | 32 |
Settlement | 0 | 1 | 0 |
Net periodic pension benefit cost | (2) | 21 | 48 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Current year actuarial loss (gain) | 1 | 12 | (8) |
Amortization of actuarial loss | (4) | (3) | (4) |
Total recognized in other comprehensive income | (3) | 9 | (12) |
Total recognized in net periodic benefit cost and other comprehensive income | (5) | 30 | 36 |
Pension Benefits | New York Water Service Corporation Pension Plan | Maximum | |||
Components of net periodic pension benefit cost and other postretirement benefit cost | |||
Settlement | 1 | 1 | |
Other Benefits | |||
Components of net periodic pension benefit cost and other postretirement benefit cost | |||
Service cost | 4 | 4 | 4 |
Interest cost | 10 | 12 | 15 |
Expected return on plan assets | (21) | (19) | (18) |
Amortization of prior service (credit) cost | (32) | (34) | (35) |
Amortization of actuarial loss | 0 | 2 | 3 |
Net periodic pension benefit cost | $ (39) | $ (35) | $ (31) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) customer in Thousands | 12 Months Ended | |||||||
Dec. 31, 2021USD ($) | Nov. 29, 2021USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2015customer | Jun. 27, 2015 | Jun. 26, 2015 | Jun. 23, 2015customer | |
Commitments And Contingencies [Line Items] | ||||||||
Estimated capital expenditures under legal and binding contractual obligations | $ 626,000,000 | |||||||
Authorized contribution to charitable purposes | 45,000,000 | |||||||
Loss contingency, probable loss | 7,000,000 | |||||||
Dunbar | WVAWC | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Number of customers impacted due to failure of main that caused that water outages and low pressure | customer | 25 | |||||||
Percentage of impacted customers to which service was restored | 20.00% | 80.00% | ||||||
Number of customers for whom system was reconfigured to maintain service while final repair was completed | customer | 3 | |||||||
Monterey | Cal Am | SWRCB | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Approved cost estimates | $ 279,000,000 | |||||||
Aggregate costs | 186,000,000 | |||||||
Requested base rate treatment and related aquifer storage and recovery project | $ 81,000,000 | |||||||
Allowance for funds used during construction | 47,000,000 | |||||||
Binding Agreement | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Litigation settlement amount awarded to other party, pre tax, net | 126,000,000 | |||||||
Litigation settlement amount awarded to other party | 500,000 | |||||||
Insurance settlements receivable | 500,000 | |||||||
Binding Agreement | WVAWC | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Litigation settlement amount awarded to other party | 19,000,000 | |||||||
Maximum | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Loss contingency, possible loss | $ 2,000,000 | |||||||
Maximum | Monterey | Cal Am | SWRCB | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Approved recovery amount | $ 50,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Future Annual Commitments Related to Minimum Quantities of Purchased Water Having Non-Cancelable Terms (Details) $ in Millions | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 71 |
2023 | 65 |
2024 | 51 |
2025 | 49 |
2026 | 49 |
Thereafter | $ 507 |
Earnings Per Common Share - Rec
Earnings Per Common Share - Reconciliation of Numerator and Denominator for Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to common shareholders | $ 645 | $ 278 | $ 207 | $ 133 | $ 145 | $ 264 | $ 176 | $ 124 | $ 1,263 | $ 709 | $ 621 |
Weighted average common shares outstanding—Basic (in shares) | 182 | 181 | 181 | ||||||||
Effect of dilutive common stock equivalents (in shares) | 0 | 1 | 0 | ||||||||
Weighted average common shares outstanding—Diluted (in shares) | 182 | 182 | 181 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Maximum | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock with mandatory redemption requirements, carrying amount | $ 4 | $ 5 |
Long-term debt (excluding finance lease obligations), carrying amount | 10,396 | 9,656 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock with mandatory redemption requirements, fair value | 6 | 7 |
Long-term debt (excluding finance lease obligations), fair value | 11,818 | 11,807 |
Level 1 | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock with mandatory redemption requirements, fair value | 0 | 0 |
Long-term debt (excluding finance lease obligations), fair value | 10,121 | 9,639 |
Level 2 | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock with mandatory redemption requirements, fair value | 0 | 0 |
Long-term debt (excluding finance lease obligations), fair value | 60 | 415 |
Level 3 | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock with mandatory redemption requirements, fair value | 6 | 7 |
Long-term debt (excluding finance lease obligations), fair value | $ 1,637 | $ 1,753 |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments - Fair Value Measurements of Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Restricted funds | $ 21 | $ 29 |
Rabbi trust investments | 23 | 19 |
Deposits | 27 | 4 |
Other investments | 17 | 11 |
Contingent cash payment from the sale of HOS | 72 | |
Total assets | 160 | 63 |
Liabilities: | ||
Deferred compensation obligations | 27 | 24 |
Total liabilities | 27 | 24 |
Total assets | 133 | 39 |
Level 1 | ||
Assets: | ||
Restricted funds | 21 | 29 |
Rabbi trust investments | 23 | 19 |
Deposits | 27 | 4 |
Other investments | 17 | 11 |
Contingent cash payment from the sale of HOS | 0 | |
Total assets | 88 | 63 |
Liabilities: | ||
Deferred compensation obligations | 27 | 24 |
Total liabilities | 27 | 24 |
Total assets | 61 | 39 |
Level 2 | ||
Assets: | ||
Restricted funds | 0 | 0 |
Rabbi trust investments | 0 | 0 |
Deposits | 0 | 0 |
Other investments | 0 | 0 |
Contingent cash payment from the sale of HOS | 0 | |
Total assets | 0 | 0 |
Liabilities: | ||
Deferred compensation obligations | 0 | 0 |
Total liabilities | 0 | 0 |
Total assets | 0 | 0 |
Level 3 | ||
Assets: | ||
Restricted funds | 0 | 0 |
Rabbi trust investments | 0 | 0 |
Deposits | 0 | 0 |
Other investments | 0 | 0 |
Contingent cash payment from the sale of HOS | 72 | |
Total assets | 72 | 0 |
Liabilities: | ||
Deferred compensation obligations | 0 | 0 |
Total liabilities | 0 | 0 |
Total assets | $ 72 | $ 0 |
Fair Values of Financial Inst_5
Fair Values of Financial Instruments - Additional Information (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Homeowner Services Group - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 09, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Contingent consideration receivable | $ 75 | |
Level 3 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Contingent consideration receivable | $ 75 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finance lease [extensible enumeration] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | |
Carrying value of finance lease assets | $ 146 | $ 147 | |
Operating and financing leases, rent expense, net | 13 | $ 14 | $ 16 |
Operating and Maintenance Agreement | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Future minimum sublease rentals, 2022 | 4 | ||
Future minimum sublease rentals, 2023 | 4 | ||
Future minimum sublease rentals, 2024 | 4 | ||
Future minimum sublease rentals, 2025 | 4 | ||
Future minimum sublease rentals, 2026 | 4 | ||
Future minimum sublease rentals, thereafter | $ 48 | ||
Real Property | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, term of contract | 38 years | ||
Vehicles | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, term of contract | 5 years | ||
Equipment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, term of contract | 5 years | ||
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, renewal term | 1 year | ||
Minimum | Utility Plant | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lessee, finance lease, term of contract | 30 years | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, renewal term | 60 years | ||
Maximum | Utility Plant | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lessee, finance lease, term of contract | 40 years |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Leases [Abstract] | |
Cash paid for amounts in lease liabilities | $ 13 |
Right-of-use asset obtained in exchange for operating lease liability | $ 11 |
Leases - Remaining Lease Term a
Leases - Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2021 |
Weighted-average Remaining Lease Term [Abstract] | |
Finance lease, weighted average remaining lease term | 4 years |
Operating lease, weighted average remaining lease term | 18 years |
Weighted-average Discount Rate [Abstract] | |
Finance lease, weighted average discount rate, percent | 12.00% |
Operating lease, weighted average discount rate, percent | 4.00% |
Leases - Future Maturities of L
Leases - Future Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 12 |
2023 | 9 |
2024 | 9 |
2025 | 8 |
2026 | 7 |
Thereafter | 89 |
Imputed interest | $ 45 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - Regulated Businesses | 12 Months Ended |
Dec. 31, 2021statesegment | |
Segment Reporting Information [Line Items] | |
Number of reportable segment | segment | 1 |
Number of states in which entity provides water and wastewater services | state | 14 |
Segment Information - Summarize
Segment Information - Summarized Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | $ 951 | $ 1,092 | $ 999 | $ 888 | $ 923 | $ 1,079 | $ 931 | $ 844 | $ 3,930 | $ 3,777 | $ 3,610 |
Depreciation and amortization | 636 | 604 | 582 | ||||||||
Total operating expenses, net | 2,734 | 2,529 | 2,396 | ||||||||
Interest expense | (403) | (397) | (386) | ||||||||
Interest income | 4 | 2 | 4 | ||||||||
Gain or (loss) on sale of businesses | 747 | 0 | (44) | ||||||||
Income before income taxes | 1,640 | 924 | 833 | ||||||||
Provision for income taxes | 377 | 215 | 212 | ||||||||
Net income attributable to common shareholders | 645 | $ 278 | $ 207 | $ 133 | 145 | $ 264 | $ 176 | $ 124 | 1,263 | 709 | 621 |
Total assets | 26,075 | 24,766 | 26,075 | 24,766 | 22,682 | ||||||
Cash paid for capital expenditures | 1,764 | 1,822 | 1,654 | ||||||||
Regulated Businesses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 3,384 | 3,255 | 3,094 | ||||||||
Market-Based Businesses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 563 | 540 | 539 | ||||||||
Operating Segments | Regulated Businesses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 3,384 | 3,255 | 3,094 | ||||||||
Depreciation and amortization | 601 | 562 | 529 | ||||||||
Total operating expenses, net | 2,227 | 2,102 | 1,964 | ||||||||
Interest expense | (290) | (293) | (299) | ||||||||
Interest income | 1 | 2 | 4 | ||||||||
Gain or (loss) on sale of businesses | (1) | ||||||||||
Income before income taxes | 962 | 932 | 869 | ||||||||
Provision for income taxes | 172 | 217 | 215 | ||||||||
Net income attributable to common shareholders | 789 | 715 | 654 | ||||||||
Total assets | 23,365 | 22,357 | 23,365 | 22,357 | 20,318 | ||||||
Cash paid for capital expenditures | 1,747 | 1,804 | 1,627 | ||||||||
Operating Segments | Market-Based Businesses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 563 | 540 | 539 | ||||||||
Depreciation and amortization | 22 | 26 | 37 | ||||||||
Total operating expenses, net | 510 | 421 | 436 | ||||||||
Interest expense | (7) | (7) | (8) | ||||||||
Interest income | 3 | 8 | 13 | ||||||||
Gain or (loss) on sale of businesses | 748 | ||||||||||
Income before income taxes | 798 | 120 | 66 | ||||||||
Provision for income taxes | 248 | 29 | 20 | ||||||||
Net income attributable to common shareholders | 550 | 91 | 46 | ||||||||
Total assets | 514 | 891 | 514 | 891 | 1,008 | ||||||
Cash paid for capital expenditures | 8 | 10 | 13 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | (17) | (18) | (23) | ||||||||
Depreciation and amortization | 13 | 16 | 16 | ||||||||
Total operating expenses, net | (3) | 6 | (4) | ||||||||
Interest expense | (106) | (97) | (79) | ||||||||
Interest income | 0 | (8) | (13) | ||||||||
Gain or (loss) on sale of businesses | 0 | ||||||||||
Income before income taxes | (120) | (128) | (102) | ||||||||
Provision for income taxes | (43) | (31) | (23) | ||||||||
Net income attributable to common shareholders | (76) | (97) | (79) | ||||||||
Total assets | $ 2,196 | $ 1,518 | 2,196 | 1,518 | 1,356 | ||||||
Cash paid for capital expenditures | $ 9 | $ 8 | $ 14 |
Unaudited Quarterly Data - Sche
Unaudited Quarterly Data - Schedule Of Unaudited Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Quarterly Financial Data [Abstract] | ||||||||||||||
Operating revenues | $ 951 | $ 1,092 | $ 999 | $ 888 | $ 923 | $ 1,079 | $ 931 | $ 844 | $ 3,930 | $ 3,777 | $ 3,610 | |||
Operating income | 220 | 417 | 330 | 229 | 263 | 433 | 313 | 239 | 1,196 | 1,248 | 1,214 | |||
Net income attributable to common shareholders | $ 645 | $ 278 | $ 207 | $ 133 | $ 145 | $ 264 | $ 176 | $ 124 | $ 1,263 | $ 709 | $ 621 | |||
Basic earnings per share: | ||||||||||||||
Net income attributable to common shareholders (USD per share) | $ 3.55 | $ 1.53 | $ 1.14 | $ 0.73 | $ 0.80 | $ 1.46 | $ 0.97 | $ 0.69 | $ 6.96 | [1] | $ 3.91 | [1] | $ 3.44 | [1] |
Diluted earnings per share: | ||||||||||||||
Net income attributable to common shareholders (USD per share) | $ 3.55 | $ 1.53 | $ 1.14 | $ 0.73 | $ 0.80 | $ 1.46 | $ 0.97 | $ 0.68 | $ 6.95 | [1] | $ 3.91 | [1] | $ 3.43 | [1] |
[1] | Amounts may not calculate due to rounding. |