Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 22, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SJW CORP | |
Entity Central Index Key | 766,829 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 20,363,574 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
OPERATING REVENUE | $ 72,402 | $ 70,356 | $ 134,514 | $ 124,952 |
Production Expenses: | ||||
Purchased water | 16,002 | 11,942 | 25,286 | 21,672 |
Power | 1,528 | 2,623 | 2,700 | 4,112 |
Groundwater extraction charges | 6,197 | 15,516 | 14,133 | 24,964 |
Other production expenses | 3,065 | 3,001 | 6,062 | 5,863 |
Total production expenses | 26,792 | 33,082 | 48,181 | 56,611 |
Administrative and general | 11,464 | 9,510 | 22,760 | 18,960 |
Maintenance | 3,844 | 3,573 | 7,212 | 6,847 |
Property taxes and other non-income taxes | 2,890 | 2,575 | 5,985 | 5,379 |
Depreciation and amortization | 10,202 | 9,495 | 20,361 | 18,980 |
Total operating expense | 55,192 | 58,235 | 104,499 | 106,777 |
OPERATING INCOME | 17,210 | 12,121 | 30,015 | 18,175 |
OTHER (EXPENSE) INCOME: | ||||
Interest on long-term debt | (5,299) | (4,553) | (10,638) | (9,095) |
Mortgage and other interest expense | (319) | (401) | (632) | (729) |
Gain on sale of California Water Service Group stock | 0 | 2,017 | 0 | 2,017 |
Gain on sale of real estate investment | 0 | 273 | 0 | 273 |
Dividend income | 44 | 42 | 87 | 105 |
Other, net | 230 | 439 | 523 | 659 |
Income before income taxes | 11,866 | 9,938 | 19,355 | 11,405 |
Provision for income taxes | 4,405 | 3,092 | 7,199 | 3,653 |
NET INCOME | 7,461 | 6,846 | 12,156 | 7,752 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized income (loss) on investment | (255) | 41 | (270) | 239 |
Reclassification adjustment for gain realized on sale of investments | 0 | (1,171) | 0 | (1,171) |
COMPREHENSIVE INCOME | $ 7,206 | $ 5,716 | $ 11,886 | $ 6,820 |
EARNINGS PER SHARE | ||||
Basic (usd per share) | $ 0.37 | $ 0.34 | $ 0.60 | $ 0.38 |
Diluted (usd per share) | 0.36 | 0.34 | 0.59 | 0.38 |
DIVIDENDS PER SHARE (usd per share) | $ 0.20 | $ 0.19 | $ 0.39 | $ 0.38 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||
Basic (shares) | 20,357,068 | 20,214,349 | 20,342,064 | 20,204,655 |
Diluted (shares) | 20,501,437 | 20,398,002 | 20,490,938 | 20,391,692 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Utility plant: | ||
Land | $ 16,839 | $ 16,838 |
Depreciable plant and equipment | 1,388,775 | 1,353,772 |
Construction in progress | 34,694 | 23,208 |
Intangible assets | 22,182 | 19,333 |
Property, Plant and Equipment, Gross | 1,462,490 | 1,413,151 |
Less accumulated depreciation and amortization | 469,236 | 450,137 |
Public Utilities, Property, Plant and Equipment, Net | 993,254 | 963,014 |
Real estate investments | 73,893 | 73,794 |
Less accumulated depreciation and amortization | 12,371 | 11,593 |
Total | 61,522 | 62,201 |
CURRENT ASSETS: | ||
Cash and cash equivalents | 5,238 | 2,399 |
Accounts receivable: | ||
Customers, net of allowances for uncollectible accounts | 17,629 | 14,997 |
Income tax | 3,887 | 8,871 |
Other | 3,074 | 3,385 |
Accrued unbilled utility revenue | 18,962 | 18,074 |
Materials and supplies | 1,301 | 1,214 |
Prepaid expenses | 2,950 | 2,300 |
Current regulatory asset, net | 16,971 | 16,853 |
Assets, Current | 70,012 | 68,093 |
OTHER ASSETS: | ||
Investment in California Water Service Group | 5,922 | 6,378 |
Unamortized debt issuance, broker and reacquisition costs | 4,970 | 5,218 |
Net regulatory assets, less current portion | 153,718 | 158,010 |
Other | 6,459 | 6,390 |
Assets, Noncurrent | 171,069 | 175,996 |
Assets | 1,295,857 | 1,269,304 |
Shareholders' equity: | ||
Common stock, $0.521 par value; authorized 36,000,000 shares; issued and outstanding 20,363,574 shares on June 30, 2015 and 20,286,840 on December 31, 2014 | 10,606 | 10,567 |
Additional paid-in capital | 67,344 | 66,298 |
Retained earnings | 284,498 | 280,773 |
Accumulated other comprehensive income | 2,247 | 2,517 |
Total shareholders' equity | 364,695 | 360,155 |
Long-term debt, less current portion | 384,038 | 384,365 |
Capitalization, Long-term Debt and Equity | 748,733 | 744,520 |
CURRENT LIABILITIES: | ||
Line of credit | 20,200 | 13,200 |
Current portion of long-term debt | 597 | 584 |
Accrued groundwater extraction charges and purchased water | 8,052 | 5,411 |
Purchased power | 547 | 619 |
Accounts payable | 13,037 | 7,001 |
Accrued interest | 6,191 | 6,361 |
Accrued property taxes and other non-income taxes | 839 | 1,607 |
Accrued payroll | 3,440 | 3,755 |
Other current liabilities | 6,134 | 6,156 |
Liabilities, Current | 59,037 | 44,694 |
DEFERRED INCOME TAXES | 187,310 | 185,506 |
UNAMORTIZED INVESTMENT TAX CREDITS | 1,285 | 1,315 |
ADVANCES FOR CONSTRUCTION | 76,198 | 73,303 |
CONTRIBUTIONS IN AID OF CONSTRUCTION | 139,086 | 138,502 |
DEFERRED REVENUE | 1,402 | 1,323 |
POSTRETIREMENT BENEFIT PLANS | 76,828 | 74,187 |
OTHER NONCURRENT LIABILITIES | 5,978 | 5,954 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
Liabilities and Equity | $ 1,295,857 | $ 1,269,304 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.521 | $ 0.521 |
Common stock, shares authorized (shares) | 36,000,000 | 36,000,000 |
Common stock, shares issued (shares) | 20,363,574 | 20,286,840 |
Common stock, shares outstanding (shares) | 20,363,574 | 20,286,840 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES: | ||
Net income | $ 12,156 | $ 7,752 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 21,152 | 19,772 |
Deferred income taxes | 2,170 | 404 |
Share-based compensation | 761 | 451 |
Gain on sale of real estate investment | 0 | (273) |
Gain on sale of California Water Service Group stock | 0 | (2,017) |
Changes in operating assets and liabilities: | ||
Accounts receivable and accrued unbilled utility revenue | (3,340) | (5,125) |
Accounts payable and other current liabilities | 92 | (138) |
Accrued groundwater extraction charges and purchased water | 2,641 | 3,490 |
Purchased power | (72) | 627 |
Tax receivable and accrued taxes | 4,741 | 1,228 |
Other current asset and liabilities related to balancing and memorandum accounts | (102) | (188) |
Postretirement benefits | 2,641 | 1,167 |
Regulatory asset related to balancing and memorandum accounts | 4,292 | (1,107) |
Other changes, net | (2,114) | (1,024) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 45,018 | 25,019 |
INVESTING ACTIVITIES: | ||
Company-funded | (37,897) | (48,155) |
Contributions in aid of construction | (6,151) | (4,482) |
Additions to real estate investments | (99) | 0 |
Payments for business/asset acquisition and water rights | (991) | (807) |
Cost to retire utility plant, net of salvage | (2,532) | (575) |
Proceeds from sale of real estate investment | 0 | 4,281 |
Proceeds from sale of California Water Service Group stock | 0 | 3,056 |
NET CASH USED IN INVESTING ACTIVITIES | (47,670) | (46,682) |
FINANCING ACTIVITIES: | ||
Borrowings from line of credit | 41,900 | 35,000 |
Repayments of line of credit | (34,900) | (5,400) |
Repayments of long-term borrowings | (314) | (298) |
Dividends paid | (7,936) | (7,579) |
Exercise of stock options and similar instruments | 433 | 484 |
Tax benefits realized from share options exercised | 634 | 309 |
Receipts of advances and contributions in aid of construction | 6,797 | 3,941 |
Refunds of advances for construction | (1,123) | (1,070) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 5,491 | 25,387 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 2,839 | 3,724 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,399 | 2,299 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 5,238 | 6,023 |
Cash paid (received) during the period for: | ||
Interest | 11,905 | 10,551 |
Income taxes | (448) | 1,900 |
Supplemental disclosure of non-cash activities: | ||
Increase (decrease) in accrued payables for construction costs capitalized | 5,842 | (452) |
Utility property installed by developers | $ 460 | $ 3,242 |
General
General | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | General In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of the results for the interim periods. The unaudited interim financial information has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the instructions for Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”). The Notes to Consolidated Financial Statements in SJW Corp.'s 2014 Annual Report on Form 10-K should be read with the accompanying unaudited condensed consolidated financial statements. In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-05 - “Service Concession Arrangements” which became effective for SJW Corp. during the first quarter of 2015. ASU 2014-05 specifies that an operating entity should not account for a service concession arrangement as a lease in accordance with FASB ASC Topic 840 - “Leases.” An operating entity should refer to other accounting guidance topics as applicable to account for various aspects of a service concession arrangement. ASU 2014-05 also specifies that infrastructure constructed by an operator in a service concession arrangement should not be recognized as property, plant, and equipment of the operator. ASU 2014-05 required application of the update on a modified retrospective basis to service concession arrangements that existed at January 1, 2015. San Jose Water Company operates the City of Cupertino's municipal water system under a service concession arrangement. Upon adoption of this standard, SJW Corp. reclassified $1,859 of Depreciable Plant and Equipment for infrastructure related to the Cupertino service concession arrangement to intangible assets and related accumulated depreciation of $377 to accumulated amortization. In addition, SJW Corp. recognized a cumulative effect adjustment of $436 , net of tax, to the opening balance of retained earnings. Water sales are seasonal in nature and influenced by weather conditions. The timing of precipitation and climatic conditions can cause seasonal water consumption by customers to vary significantly. Due to the seasonal nature of the water business, the operating results for interim periods are not indicative of the operating results for a 12-month period. Revenue is generally higher in the warm, dry summer months when water usage and sales are greater, and lower in the winter months when cooler temperatures and increased rainfall curtail water usage and sales. In response to the ongoing drought in California, on March 17, 2015, the State Water Resources Control Board (“State Water Board”) adopted an expanded emergency conservation regulation that became effective on March 27, 2015. The regulation prohibits certain outdoor water uses for all Californians and also places water usage restrictions on businesses in the restaurant and hospitality sectors. On March 25, 2015, the Santa Clara Valley Water District (“SCVWD”) increased their conservation target from 20% to 30% through the end of 2015. On April 1, 2015, Governor Edmund G. Brown Jr. issued an executive order imposing restrictions to achieve a statewide 25% reduction in potable urban water usage through February 28, 2016 based on 2013 usage. On April 9, 2015, the California Public Utilities Commission (“CPUC”) issued a resolution ordering its regulated water utilities to comply with the State Water Board's emergency conservation regulation, conduct additional customer outreach and implement restrictions on outdoor water use. Effective June 15, 2015, San Jose Water Company was authorized by the CPUC to activate Stage 3 of Tariff Rule 14.1 which is a water shortage contingency plan with mandatory water usage reduction and drought surcharges. Tariff Rule 14.1 focuses primarily on restrictions of outdoor water use which accounts for 50% of a typical customer's water usage. The drought surcharges will be recorded in a drought account authorized by the CPUC to track lost revenues from conservation. The amount collected will offset future rate increases that would be necessary to recover lost revenue due to drought conservation efforts as described in the next paragraph. San Jose Water Company is continually working to remain in compliance with the various drought rules and regulations and is also working with local governments as well as the SCVWD to communicate consistent messages to the public about use restrictions and related matters because of the ongoing drought. Effective March 31, 2014, San Jose Water Company received approval from the CPUC to institute a Mandatory Conservation Revenue Adjustment Memorandum Account (“MCRAMA”) to track any revenue shortfall and a Mandatory Conservation Memorandum Account (“MCMA”) to track operational and administrative costs associated with implementation of SCVWD's 2014 and 2015 conservation goals of 20% and 30% , respectively. San Jose Water Company will record the lost revenue captured in the MCRAMA and MCMA regulatory accounts once probability of recovery can be determined and collection can be assured within 24 months after the end of the fiscal year in which the revenue is recorded. For further discussion, please see Note 8 and Note 9. Basic earnings per share is calculated using income available to common shareholders, divided by the weighted average number of shares outstanding during the period. Diluted earnings per share is calculated using income available to common shareholders divided by the weighted average number of shares of common stock including both shares outstanding and shares potentially issuable in connection with deferred restricted common stock awards under SJW Corp.'s Long-Term Incentive Plan (as amended, the “Incentive Plan”) and shares potentially issuable under the 2014 Employee Stock Purchase Plan (“ESPP”). For the three months ended June 30, 2015 and 2014 , 1,321 and 680 anti-dilutive restricted common stock units were excluded from the dilutive earnings per share calculation, respectively. For the six months ended June 30, 2015 and 2014 , 1,439 and 1,129 anti-dilutive restricted common stock units were excluded from the dilutive earnings per share calculation, respectively. A portion of depreciation expense is allocated to administrative and general expense. For the three months ended June 30, 2015 and 2014 , the amounts allocated to administrative and general expense were $392 and $396 , respectively. For the six months ended June 30, 2015 and 2014 , the amounts allocated to administrative and general expense were $791 and $792 , respectively. |
Equity Plans
Equity Plans | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EQUITY PLANS | Equity Plans SJW Corp. accounts for share-based compensation based on the grant date fair value of the awards issued to employees in accordance with FASB ASC Topic 718 - “Compensation - Stock Compensation,” which requires the measurement and recognition of compensation expense based on the estimated fair value for all share-based payment awards. The Incentive Plan allows SJW Corp. to provide employees, non-employee board members or the board of directors of any parent or subsidiary, consultants, and other independent advisors who provide services to the company or any parent or subsidiary the opportunity to acquire an equity interest in SJW Corp. The types of awards included in the Incentive Plan are restricted stock awards, restricted stock units, performance shares, or other share-based awards. As of June 30, 2015 , the remaining shares available for issuance under the Incentive Plan were 1,037,068 , and 246,186 shares were issuable upon the exercise of outstanding restricted stock units and deferred restricted stock units. In addition, shares are issued to employees under the ESPP. SJW Corp. also had a Dividend Reinvestment and Stock Purchase Plan (“DRSPP”) which allowed eligible participants to buy shares and reinvest cash dividends in SJW Corp. common stock. The DRSPP was terminated effective as of April 14, 2014. Stock compensation costs charged to income are recognized on a straight-line basis over the requisite service period. A summary of compensation costs charged to income, proceeds from the exercise of stock options and similar instruments, and the tax benefit realized from stock options and similar instruments exercised, that were recorded to additional paid-in capital and common stock, by award type, are presented below for the three and six months ended June 30, 2015 and 2014 . Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Adjustments to additional paid-in capital and common stock for: Compensation costs charged to income: ESPP $ — — $ 76 72 Restricted stock and deferred restricted stock 362 207 685 379 Total compensation costs charged to income $ 362 207 $ 761 451 Excess tax benefits realized from share options exercised and stock issuance: Stock options $ — — $ — 59 Restricted stock and deferred restricted stock 108 251 634 250 Total excess tax benefits realized from share options exercised and stock issuance $ 108 251 $ 634 309 Proceeds from the exercise of stock options and similar instruments: Stock options $ — — $ — 44 DRSPP — 8 — 34 ESPP — — 433 406 Total proceeds from the exercise of stock options and similar instruments $ — 8 $ 433 484 Stock, Restricted Stock and Deferred Restricted Stock On January 2, 2015 , restricted stock units covering an aggregate of 12,271 shares of common stock of SJW Corp. were granted to certain officers of SJW Corp. and its subsidiaries. The units vest in three equal successive installments upon completion of each year of service with no dividend equivalent rights. Share-based compensation expense of $29.83 per unit which is based on the award grant date fair value is being recognized over the service period beginning in 2015. On January 27, 2015 , certain officers of SJW Corp. were granted performance-based restricted stock units covering an aggregate target number of SJW Corp.'s shares of common stock equal to 3,252 that will vest based on the actual attainment of specified performance goals measured for the 2015 calendar year and continued service through December 31, 2015. The number of shares issuable under the awards, ranging between 0% to 150% of the target number of shares, is based on the level of actual attainment of specified performance goals. The units do not include dividend equivalent rights. The awards have no market conditions and the share-based compensation expense of $34.36 per unit which is based on the award grant date fair value is being recognized assuming the performance goals will be attained. On January 27, 2015 , a key employee of SJW Corp. was granted performance-based restricted stock units covering a number of SJW Corp.'s shares of common stock equal to 6,639 that will vest based on the actual attainment of a specified performance goal measured over the 2015 calendar year and continued service through December 31, 2015. The units do not include dividend equivalent rights. The award has no market conditions and the share-based compensation expense of $34.36 per unit which is based on the award grant date fair value is being recognized assuming the performance goals will be attained. On April 29, 2015 , restricted stock units covering an aggregate of 9,352 shares of common stock of SJW Corp. were granted to the non-employee board members of SJW Corp. The units vest upon continuous board service through the day immediately preceding the date of the next annual shareholder meeting with no dividend equivalent rights. Share-based compensation expense of $29.17 per unit which is based on the award grant date fair value is being recognized over the service period beginning in 2015. On April 29, 2015 , restricted stock units covering an aggregate of 501 shares of common stock of SJW Corp. were granted to an officer of SJW Corp. The units vest in three equal successive installments upon completion of each year of service with no dividend equivalent rights. Share-based compensation expense of $27.64 per unit which is based on the award grant date fair value is being recognized over the service period beginning in 2015. On April 29, 2015 , an officer of SJW Corp. was granted performance-based restricted stock units covering a target number of SJW Corp.'s shares of common stock equal to 501 that will vest based on the actual attainment of specified performance goals measured for the 2015 calendar year and continued service through December 31, 2015. The number of shares issuable under the award, ranging between 0% to 150% of the target number of shares, is based on the level of actual attainment of specified performance goals. The units do not include dividend equivalent rights. The award has no market conditions and the share-based compensation expense of $29.37 per unit which is based on the award grant date fair value is being recognized assuming the performance goal will be attained. As of June 30, 2015 , the total unrecognized compensation costs related to restricted and deferred restricted stock plans was $1,927 . This cost is expected to be recognized over a remaining weighted-average period of 1.14 years. Employee Stock Purchase Plan The ESPP allows eligible employees to purchase shares of SJW Corp.'s common stock at 85% of the fair value of shares on the purchase date. Under the ESPP, employees can designate up to a maximum of 10% of their base compensation for the purchase of shares of common stock, subject to certain restrictions. A total of 400,000 shares of common stock have been reserved for issuance under the ESPP. After considering estimated employee terminations or withdrawals from the plan before the purchase date, SJW Corp.'s recorded expenses were $43 and $82 for the three and six months ended June 30, 2015 , respectively, and $39 and $75 for the three and six months ended June 30, 2014 , respectively, related to the ESPP. The total unrecognized compensation costs related to the semi-annual offering period that ends July 31, 2015 for the ESPP is approximately $14 . This cost is expected to be recognized during the third quarter of 2015. Dividend Reinvestment and Stock Purchase Plan The DRSPP offered shareholders the ability to reinvest cash dividends in SJW Corp. common stock and also purchase additional shares of SJW Corp. common stock. For the three and six months ended June 30, 2014 , 1,151 shares were issued under the DRSPP. SJW Corp. terminated the DRSPP effective as of April 14, 2014. |
Real Estate Investments
Real Estate Investments | 6 Months Ended |
Jun. 30, 2015 | |
Real Estate Investments, Net [Abstract] | |
REAL ESTATE INVESTMENTS | Real Estate Investments The major components of real estate investments as of June 30, 2015 and December 31, 2014 are as follows: June 30, December 31, Land $ 17,297 17,297 Buildings and improvements 56,267 56,168 Intangibles 329 329 Subtotal 73,893 73,794 Less: accumulated depreciation and amortization 12,371 11,593 Total $ 61,522 62,201 Depreciation and amortization is computed using the straight-line method over the estimated life of the respective assets, ranging from 5 to 39 years . On June 30, 2014, SJW Land Company sold its retail building located in El Paso, Texas for $4,450 . SJW Corp. recognized a pre-tax gain on the sale of real estate investment of $273 , after selling expenses of $169 . |
Defined Benefit Plan
Defined Benefit Plan | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
DEFINED BENEFIT PLAN | Defined Benefit Plan San Jose Water Company sponsors a noncontributory defined benefit pension plan for its eligible employees. Employees hired before March 31, 2008 are entitled to receive retirement benefits using a formula based on the employee's three highest years of compensation (whether or not consecutive). For employees hired on or after March 31, 2008, benefits are determined using a cash balance formula based on compensation credits and interest credits for each employee. Officers hired before March 31, 2008 are eligible to receive additional retirement benefits under the Executive Supplemental Retirement Plan, and officers hired on or after March 31, 2008 are eligible to receive additional retirement benefits under the Cash Balance Executive Supplemental Retirement Plan. Both plans are non-qualified plans in which only officers and other designated members of management may participate. San Jose Water Company also provides health care and life insurance benefits for retired employees under the San Jose Water Company Social Welfare Plan. The components of net periodic benefit costs for San Jose Water Company's pension plan, its Executive Supplemental Retirement Plan, Cash Balance Executive Supplemental Retirement Plan and Social Welfare Plan for the three and six months ended June 30, 2015 and 2014 are as follows: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Service cost $ 1,363 1,051 $ 2,726 2,111 Interest cost 1,711 1,652 3,423 3,303 Other cost 1,192 625 2,384 1,256 Expected return on assets (1,817 ) (1,674 ) (3,633 ) (3,341 ) $ 2,449 1,654 $ 4,900 3,329 The following tables summarize the fair values of plan assets by major categories as of June 30, 2015 and December 31, 2014 : Fair Value Measurements at June 30, 2015 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset Category Benchmark Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 4,926 $ 4,926 $ — $ — Actively Managed (a): All Cap Equity Russell 3000 Value 4,174 4,149 25 — U.S. Large Cap Equity Russell 1000, Russell 1000 Growth, Russell 1000 Value 36,347 36,347 — — U.S. Mid Cap Equity Russell Mid Cap, Russell Mid Cap Growth, Russell Mid Cap Value 6,195 6,195 — — U.S. Small Cap Equity Russell 2000, Russell 2000 Growth, Russell 2000 Value 5,287 5,287 — — Non-U.S. Large Cap Equity MSCI EAFE 5,102 5,102 — — REIT NAREIT - Equity REIT'S 4,869 — 4,869 — Fixed Income (b) (b) 37,856 — 37,856 — Total $ 104,756 $ 62,006 $ 42,750 $ — The Plan has a current target allocation of 55% invested in a diversified array of equity securities to provide long-term capital appreciation and 45% invested in a diversified array of fixed income securities to provide preservation of capital plus generation of income. (a) Actively managed portfolio of securities with the goal to exceed the stated benchmark performance. (b) Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate. Fair Value Measurements at December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset Category Benchmark Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 6,811 $ 6,811 $ — $ — Actively Managed (a): All Cap Equity Russell 3000 Vaue 4,266 4,237 29 — U.S. Large Cap Equity Russell 1000, Russell 1000 Growth, Russell 1000 Value 35,489 35,489 — — U.S. Mid Cap Equity Russell Mid Cap, Russell Mid Cap Growth, Russell Mid Cap Value 6,069 6,069 — — U.S. Small Cap Equity Russell 2000, Russell 2000 Growth, Russell 2000 Value 4,982 4,982 — — Non-U.S. Large Cap Equity MSCI EAFE 4,758 4,758 — — REIT NAREIT - Equity REIT'S 5,069 — 5,069 — Fixed Income (b) (b) 36,435 — 36,435 — Total $ 103,879 $ 62,346 $ 41,533 $ — The Plan has a current target allocation of 55% invested in a diversified array of equity securities to provide long-term capital appreciation and 45% invested in a diversified array of fixed income securities to provide preservation of capital plus generation of income. (a) Actively managed portfolio of securities with the goal to exceed the stated benchmark performance. (b) Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate. In 2015 , San Jose Water Company expects to make required and discretionary cash contributions of up to $9,256 to the pension plans and Social Welfare Plan. For the three and six months ended June 30, 2015 , $1,930 has been contributed to the pension plans and Social Welfare Plan. |
Segment and Nonregulated Busine
Segment and Nonregulated Business Reporting | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT AND NONREGULATED BUSINESS REPORTING | Segment and Non-Tariffed Business Reporting SJW Corp. is a holding company with five subsidiaries: (i) San Jose Water Company, a water utility which operates both regulated and non-tariffed businesses, (ii) SJW Land Company and its consolidated variable interest entity, 444 West Santa Clara Street, L.P., which operate commercial building rentals, (iii) SJWTX, Inc. which is doing business as Canyon Lake Water Service Company (“CLWSC”), a regulated water utility located in Canyon Lake, Texas, and its consolidated non-tariffed variable interest entity, Acequia Water Supply Corporation, (iv) Texas Water Alliance Limited, a non-tariffed water utility operation which is undertaking activities that are necessary to develop a water supply project in Texas, and (v) SJW Group, Inc., a Delaware corporation formed in March 2015 for the sole purpose of effectuating a change in the state of incorporation of SJW Corp. from California to Delaware. Any future reincorporation is subject to CPUC approval. In accordance with FASB ASC Topic 280 – “Segment Reporting,” SJW Corp. has determined that it has two reportable business segments. The first segment is that of providing water utility and utility-related services to its customers through SJW Corp.'s subsidiaries, San Jose Water Company, Canyon Lake Water Service Company, and Texas Water Alliance Limited, together referred to as “Water Utility Services.” The second segment is property management and investment activity conducted by SJW Land Company, referred to as “Real Estate Services.” SJW Corp.'s reportable segments have been determined based on information used by the chief operating decision maker. SJW Corp.'s chief operating decision maker is its senior staff which includes the Chairman, President and Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Chief Administrative Officer, and Senior Vice President of Regulatory Affairs. The senior staff reviews financial information presented on a consolidated basis that is accompanied by disaggregated information about operating revenue, net income and total assets, by subsidiaries. The tables below set forth information relating to SJW Corp.'s reportable segments and distribution of regulated and non-tariffed business activities within the reportable segments. Certain allocated assets, revenue and expenses have been included in the reportable segment amounts. Other business activity of SJW Corp. not included in the reportable segments is included in the “All Other” category. For Three Months Ended June 30, 2015 Water Utility Services Real Estate Services All Other* SJW Corp. Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 69,011 1,588 1,803 — 69,011 3,391 72,402 Operating expense 52,555 1,343 1,003 291 52,555 2,637 55,192 Operating income (loss) 16,456 245 800 (291 ) 16,456 754 17,210 Net income (loss) 7,556 55 272 (422 ) 7,556 (95 ) 7,461 Depreciation and amortization 9,693 121 388 — 9,693 509 10,202 Senior note, mortgage and other interest expense 4,814 — 255 549 4,814 804 5,618 Income tax expense (benefit) in net income 4,457 93 163 (308 ) 4,457 (52 ) 4,405 Assets $ 1,205,819 18,611 67,066 4,361 1,205,819 90,038 1,295,857 For Three Months Ended June 30, 2014 Water Utility Services Real Estate Services All Other* SJW Corp. Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 66,967 1,553 1,836 — 66,967 3,389 70,356 Operating expense 55,642 1,216 1,055 322 55,642 2,593 58,235 Operating income (loss) 11,325 337 781 (322 ) 11,325 796 12,121 Net income (loss) 5,591 132 380 743 5,591 1,255 6,846 Depreciation and amortization 8,989 90 416 — 8,989 506 9,495 Senior note, mortgage and other interest expense 4,139 — 262 553 4,139 815 4,954 Income tax expense (benefit) in net income 2,208 117 273 494 2,208 884 3,092 Assets $ 1,053,145 17,487 66,300 10,090 1,053,145 93,877 1,147,022 For Six Months Ended June 30, 2015 Water Utility Services Real Estate Services All Other* SJW Corp. Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 127,898 3,035 3,581 — 127,898 6,616 134,514 Operating expense 99,477 2,305 2,027 690 99,477 5,022 104,499 Operating income (loss) 28,421 730 1,554 (690 ) 28,421 1,594 30,015 Net income (loss) 12,257 273 532 (906 ) 12,257 (101 ) 12,156 Depreciation and amortization 19,372 211 778 — 19,372 989 20,361 Senior note, mortgage and other interest expense 9,644 — 510 1,116 9,644 1,626 11,270 Income tax expense (benefit) in net income 7,275 275 308 (659 ) 7,275 (76 ) 7,199 Assets $ 1,205,819 18,611 67,066 4,361 1,205,819 90,038 1,295,857 For Six Months Ended June 30, 2014 Water Utility Services Real Estate Services All Other* SJW Corp. Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 118,593 2,781 3,578 — 118,593 6,359 124,952 Operating expense 102,105 2,088 2,077 507 102,105 4,672 106,777 Operating income (loss) 16,488 693 1,501 (507 ) 16,488 1,687 18,175 Net income (loss) 6,494 283 584 391 6,494 1,258 7,752 Depreciation and amortization 17,966 180 834 — 17,966 1,014 18,980 Senior note, mortgage and other interest expense 8,220 — 499 1,105 8,220 1,604 9,824 Income tax expense (benefit) in net income 2,760 241 426 226 2,760 893 3,653 Assets $ 1,053,145 17,487 66,300 10,090 1,053,145 93,877 1,147,022 * The “All Other” category includes the accounts of SJW Corp. on a stand-alone basis and SJW Group, Inc. For the three and six months ended June 30, 2015 , SJW Group, Inc. had no revenue or expenses recorded and held no assets as of June 30, 2015 . |
Long-Term Liabilities and Bank
Long-Term Liabilities and Bank Borrowings | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Liabilities and Bank Borrowings | Long-Term Liabilities and Bank Borrowings SJW Corp.'s contractual obligations and commitments include senior notes, mortgages and other obligations. San Jose Water Company, a subsidiary of SJW Corp., has received advance deposit payments from its customers on certain construction projects. Refunds of the advance deposit payments constitute an obligation of San Jose Water Company solely. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | Fair Value Measurement The following instruments are not measured at fair value on the SJW Corp.'s condensed consolidated balance sheets as of June 30, 2015 , but require disclosure of their fair values: cash and cash equivalents, accounts receivable and accounts payable. The estimated fair value of such instruments as of June 30, 2015 approximates their carrying value as reported on the condensed consolidated balance sheets. The fair value of such financial instruments are determined using the income approach based on the present value of estimated future cash flows. There have been no changes in our valuation technique during the three months ended June 30, 2015 . The fair value of these instruments would be categorized as Level 2 in the fair value hierarchy, with the exception of cash and cash equivalents, which would be categorized as Level 1. The fair value of pension plan assets is discussed in Note 4. The fair value of SJW Corp.'s long-term debt was approximately $440,053 and $460,171 as of June 30, 2015 and December 31, 2014 , respectively, and was determined using a discounted cash flow analysis, based on the current rates for similar financial instruments of the same duration and creditworthiness of the company. The book value of the long-term debt was $ 384,635 and $ 384,949 as of June 30, 2015 and December 31, 2014 , respectively. The fair value of long-term debt would be categorized as Level 2 in the fair value hierarchy. As of June 30, 2015 and December 31, 2014 , the fair value of the Company's investment in California Water Service Group was $5,922 and $6,378 , respectively, and would be categorized as Level 1 of the fair value hierarchy. |
Regulatory Rate Filings
Regulatory Rate Filings | 6 Months Ended |
Jun. 30, 2015 | |
Regulated Operations [Abstract] | |
Regulatory Rate Filings | Regulatory Rate Filings On September 15, 2014, San Jose Water Company filed an application for rehearing of 2012 General Rate Case Decision No. 14-08-006 to address a limited set of issues from San Jose Water Company's General Rate Case Decision No. 14-08-006. Specifically, San Jose Water Company sought rehearing on the duration of the interim rate period used to determine the General Rate Case true-up recovery and rehearing on the treatment of excess capacity labor in the provision of non-tariffed products and services. On March 27, 2015, the CPUC issued Decision No. 15-03-048 granting a limited rehearing and modifying Decision No. 14-08-006 to recover lost revenue related to the extension of interim rates from the date of the 2012 General Rate Case Decision (August 14, 2014) to the date 2014 rates became effective (September 29, 2014). On May 1, 2015, San Jose Water Company filed Advice Letter No. 471 with the CPUC requesting to recover the remaining cumulative balance of $1,937 in the 2013 General Rate Case Interim Rates Memorandum Account for the period August 15, 2014, through September 28, 2014. The recovery of the remaining balance for this 45-day period was authorized in General Rate Case rehearing Decision No. 15-03-048. San Jose Water Company's request was authorized and became effective May 6, 2015. San Jose Water Company recorded revenue in the amount of $1,937 for the six months ended June 30, 2015 for the authorized interim true-up. Please see table in Note 9. Decision No. 15-03-048 also provided for a limited rehearing on the treatment of excess capacity labor in the provision of non-tariffed products and services. A prehearing conference was held on May 18, 2015 and a Scoping Memo was issued by the CPUC on June 17, 2015. The Scoping Memo set the limited rehearing schedule with a final decision to be issued in the first quarter of 2016. On January 5, 2015, San Jose Water Company filed General Rate Case Application No. 15-01-002 requesting authority for an increase of revenue of $34,928 , or 12.22% , in 2016, $9,954 , or 3.11% , in 2017 and $17,567 , or 5.36% , in 2018. This General Rate Case filing also includes several “special requests”, including but not limited to: (1) recovery of the under-collected balance of $4,752 in balancing accounts, (2) disbursement of the over-collected balance of $976 accrued in various memorandum accounts, and (3) implementation of a full revenue decoupling Water Revenue Adjustment Mechanism and associated Modified Cost Balancing Account. The CPUC's Office of Ratepayer Advocates (“ORA”) submitted testimony on April 23 2015, recommending increases of $23,468 , or 8.54% , in 2016, $13,803 , or 4.42% , in 2017 and $16,261 , or 4.95% in 2018. San Jose Water Company and the CPUC's ORA reached a settlement agreement on a range of issues, including full settlement on all contested utility plant in-service items. Evidentiary hearings to address all remaining unsettled items took place in June 2015 and briefs were submitted in July 2015. A final decision is expected to occur in the second half of 2015 with new rates becoming effective at the beginning of 2016. If a decision is not reached by the end of 2015, the CPUC has mechanisms in place that will allow San Jose Water Company to request interim rates, effective January 1, 2016, until such time a decision is adopted. Interim rates would be set equal to fiscal year-end 2015 rates plus an increase for inflation up to the change in the consumer price index and would remain in effect until a decision is adopted. On March 26, 2015, San Jose Water Company filed Advice Letter No. 468 with the CPUC. With this advice letter San Jose Water Company is requesting authorization to recover the $9,567 under-collection accumulated in the MCRAMA during the period April 1, 2014 through December 31, 2014. The MCRAMA approved by the CPUC allows San Jose Water Company to track lost revenue associated with reduced sales due to the ongoing drought and the associated calls for water use reduction from the SCVWD. San Jose Water Company seeks to recover the accumulated balance via a quantity based surcharge on all potable usage for a period of 12 months. This advice letter is currently under CPUC review and a decision is anticipated sometime in the second half of 2015. On May 11, 2015, San Jose Water Company filed Advice Letters No. 472 and No. 473 with the CPUC. With Advice Letter No. 472, San Jose Water Company sought to modify the existing Water Shortage Contingency Plan in Tariff Rule 14.1, so that the plan reflects examples put forward by the CPUC and so that the restrictions provided within the plan more closely matched the restrictions adopted by local government agencies. Advice Letter No. 473 was filed pursuant to Executive Order B-29-15 by the Governor of the State of California, and by orders of the State Water Resources Control Board and the CPUC. With Advice Letter No. 473, San Jose Water Company requested authority from the CPUC to activate Stage 3 of Tariff Rule 14.1 and activate the Water Shortage Contingency Plan in Schedule No. 14.1 with staged mandatory reductions in water usage and drought surcharges. Both Advice Letters No. 472 and No. 473 became effective on June 15, 2015. The drought surcharges will be recorded in a drought account authorized by the CPUC to track lost revenues from conservation. The amount collected will offset future rate increases that would be necessary to recover lost revenue due to drought conservation efforts. On May 29, 2015, San Jose Water Company filed Advice Letter No. 474 with the CPUC requesting authorization to increase revenues by $18,357 , or approximately 6.44% . This increase is intended to recover increased costs for purchased water and groundwater production charged to San Jose Water Company by the SCVWD. As directed by the CPUC's Water Division, the revenue increase will be recovered via surcharges on the existing quantity rate. San Jose Water Company's request was authorized and became effective July 1, 2015. Effective September 1, 2014, CLWSC became subject to the economic regulation of the Public Utilities Commission of Texas (“PUCT”). Prior to that time, CLWSC was subject to economic regulation by the Texas Commission on Environmental Quality (“TCEQ”). Both the PUCT and TCEQ authorize rate increases after the filing of an Application for a Rate/Tariff Change. Rate cases may be filed as they become necessary, provided there is no current rate case outstanding. Further, rate cases may not be filed more frequently than once every 12 months. |
Balancing and Memorandum Accoun
Balancing and Memorandum Account Recovery Procedures | 6 Months Ended |
Jun. 30, 2015 | |
Regulated Operations [Abstract] | |
BALANCING AND MEMORANDUM ACCOUNT RECOVERY PROCEDURES | Balancing and Memorandum Account Recovery Procedures For California, the CPUC has established a balancing account mechanism for the purpose of tracking the under-collection or over-collection associated with expense changes and the revenue authorized by the CPUC to offset those expense changes. San Jose Water Company also maintains memorandum accounts to track revenue impacts due to catastrophic events, unforeseen water quality expenses related to new federal and state water quality standards, energy efficiency, cost of capital, any revenue requirement impact of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, and other approved activities or as directed by the CPUC. Balancing and memorandum accounts are recognized in revenue by San Jose Water Company 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. In addition, in the case of special revenue programs such as the MCRAMA, collection of the account balance must occur within 24 months of the year-end in which the revenue is recorded. In assessing the probability criteria for balancing and memorandum accounts between general rate cases, San Jose Water Company considers evidence that may exist prior to CPUC authorization that would satisfy FASB ASC Topic 980 - “Regulated Operations,” subtopic 340-25 recognition criteria. Such evidence may include regulatory rules and decisions, past practices, and other facts and circumstances that would indicate that recovery or refund is probable. When such evidence provides sufficient support for balance recognition, the balances are recorded in SJW Corp.'s financial statements. San Jose Water Company met the recognition requirements for certain of its balancing and memorandum accounts and as such amounts subject to balancing and memorandum accounts and revenue and regulatory assets changed as follows: Three months ended June 30, 2015 Three months ended June 30, 2014 Beginning Balance Revenue Increase(Reduction) Refunds (Collections) Ending Balance Beginning Balance Revenue Increase(Reduction) Refunds (Collections) Ending Balance Memorandum accounts $ (789 ) 397 163 (229 ) $ (1,699 ) 187 — (1,512 ) Balancing accounts: Water supply costs 825 304 (59 ) 1,070 (2,772 ) 1,551 — (1,221 ) Pension 423 143 (427 ) 139 9,765 (92 ) — 9,673 Drought surcharges — — (80 ) (80 ) — — — — 2012 General Rate Case true-up 43,517 61 (3,211 ) 40,367 — — — — All others 1,593 (108 ) (32 ) 1,453 1,985 (127 ) — 1,858 Total balancing accounts $ 46,358 400 (3,809 ) 42,949 $ 8,978 1,332 — 10,310 Total $ 45,569 797 (3,646 ) 42,720 $ 7,279 1,519 — 8,798 Six months ended June 30, 2015 Six months ended June 30, 2014 Beginning Balance Revenue Increase(Reduction) Refunds (Collections) Ending Balance Beginning Balance Revenue Increase(Reduction) Refunds (Collections) Ending Balance Memorandum accounts $ (1,377 ) 821 327 (229 ) $ (1,896 ) 384 — (1,512 ) Balancing accounts: Water supply costs 890 292 (112 ) 1,070 (2,378 ) 1,157 — (1,221 ) Pension 1,412 (463 ) (810 ) 139 9,734 (61 ) — 9,673 Drought surcharges — — (80 ) (80 ) — — — — 2012 General Rate Case true-up 44,400 1,937 (5,970 ) 40,367 — — — — All others 1,736 (223 ) (60 ) 1,453 2,229 (371 ) — 1,858 Total balancing accounts $ 48,438 1,543 (7,032 ) 42,949 $ 9,585 725 — 10,310 Total $ 47,061 2,364 (6,705 ) 42,720 $ 7,689 1,109 — 8,798 San Jose Water Company's request to extend the interim rate period to end on the effective date of 2014 rates from August 15, 2014 to September 28, 2014 and recover the remaining cumulative balance of $1,937 in that period was authorized and became effective May 6, 2015. As such, San Jose Water Company recorded $1,937 of revenue which has been included in the 2012 General Rate Case true-up row in the table above. As of June 30, 2015 , the total balance in San Jose Water Company's balancing and memorandum accounts combined, including interest, that has not been recorded into the financial statements was a net under-collection of $9,122 , of which the majority relates to the MCRAMA and MCMA. All balancing accounts and memorandum-type accounts not included for recovery or refund in the current general rate case will be reviewed by the CPUC in San Jose Water Company's next general rate case or at the time an individual account reaches a threshold of 2% of authorized revenue, whichever occurs first. On March 26, 2015, San Jose Water Company filed Advice Letter No. 468 with the CPUC requesting authorization to recover the $9,567 under-collection accumulated in the MCRAMA during the period April 1, 2014 through December 31, 2014. For further discussion, please see Note 8. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities Regulatory assets and liabilities are comprised of the following as of June 30, 2015 and December 31, 2014 : Description June 30, 2015 December 31, 2014 Regulatory assets: Income tax temporary differences, net $ 6,731 6,731 Postretirement pensions and other medical benefits 115,494 115,494 Balancing and memorandum accounts, net 42,720 47,061 Other, net 5,744 5,577 Total regulatory assets, net in Consolidated Balance Sheets $ 170,689 174,863 Less: current regulatory asset, net 16,971 16,853 Total regulatory assets, net, less current portion $ 153,718 158,010 |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | Legal Proceedings SJW Corp. is subject to ordinary routine litigation incidental to its business. There are no pending legal proceedings to which SJW Corp. or any of its subsidiaries is a party, or to which any of its properties is the subject, that are expected to have a material effect on SJW Corp.'s business, financial position, results of operations or cash flows. |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy | The unaudited interim financial information has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the instructions for Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”). The Notes to Consolidated Financial Statements in SJW Corp.'s 2014 Annual Report on Form 10-K should be read with the accompanying unaudited condensed consolidated financial statements. |
New Accounting Pronouncements, Policy | In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-05 - “Service Concession Arrangements” which became effective for SJW Corp. during the first quarter of 2015. ASU 2014-05 specifies that an operating entity should not account for a service concession arrangement as a lease in accordance with FASB ASC Topic 840 - “Leases.” An operating entity should refer to other accounting guidance topics as applicable to account for various aspects of a service concession arrangement. ASU 2014-05 also specifies that infrastructure constructed by an operator in a service concession arrangement should not be recognized as property, plant, and equipment of the operator. ASU 2014-05 required application of the update on a modified retrospective basis to service concession arrangements that existed at January 1, 2015. San Jose Water Company operates the City of Cupertino's municipal water system under a service concession arrangement. Upon adoption of this standard, SJW Corp. reclassified $1,859 of Depreciable Plant and Equipment for infrastructure related to the Cupertino service concession arrangement to intangible assets and related accumulated depreciation of $377 to accumulated amortization. In addition, SJW Corp. recognized a cumulative effect adjustment of $436 , net of tax, to the opening balance of retained earnings. |
Earnings Per Share, Policy | Basic earnings per share is calculated using income available to common shareholders, divided by the weighted average number of shares outstanding during the period. Diluted earnings per share is calculated using income available to common shareholders divided by the weighted average number of shares of common stock including both shares outstanding and shares potentially issuable in connection with deferred restricted common stock awards under SJW Corp.'s Long-Term Incentive Plan (as amended, the “Incentive Plan”) and shares potentially issuable under the 2014 Employee Stock Purchase Plan (“ESPP”). |
Equity Plans (Tables)
Equity Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | A summary of compensation costs charged to income, proceeds from the exercise of stock options and similar instruments, and the tax benefit realized from stock options and similar instruments exercised, that were recorded to additional paid-in capital and common stock, by award type, are presented below for the three and six months ended June 30, 2015 and 2014 . Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Adjustments to additional paid-in capital and common stock for: Compensation costs charged to income: ESPP $ — — $ 76 72 Restricted stock and deferred restricted stock 362 207 685 379 Total compensation costs charged to income $ 362 207 $ 761 451 Excess tax benefits realized from share options exercised and stock issuance: Stock options $ — — $ — 59 Restricted stock and deferred restricted stock 108 251 634 250 Total excess tax benefits realized from share options exercised and stock issuance $ 108 251 $ 634 309 Proceeds from the exercise of stock options and similar instruments: Stock options $ — — $ — 44 DRSPP — 8 — 34 ESPP — — 433 406 Total proceeds from the exercise of stock options and similar instruments $ — 8 $ 433 484 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Real Estate Investments, Net [Abstract] | |
Schedule of Real Estate Investments | The major components of real estate investments as of June 30, 2015 and December 31, 2014 are as follows: June 30, December 31, Land $ 17,297 17,297 Buildings and improvements 56,267 56,168 Intangibles 329 329 Subtotal 73,893 73,794 Less: accumulated depreciation and amortization 12,371 11,593 Total $ 61,522 62,201 |
Defined Benfit Plan (Tables)
Defined Benfit Plan (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit costs for San Jose Water Company's pension plan, its Executive Supplemental Retirement Plan, Cash Balance Executive Supplemental Retirement Plan and Social Welfare Plan for the three and six months ended June 30, 2015 and 2014 are as follows: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Service cost $ 1,363 1,051 $ 2,726 2,111 Interest cost 1,711 1,652 3,423 3,303 Other cost 1,192 625 2,384 1,256 Expected return on assets (1,817 ) (1,674 ) (3,633 ) (3,341 ) $ 2,449 1,654 $ 4,900 3,329 |
Schedule of Allocation of Plan Assets | The following tables summarize the fair values of plan assets by major categories as of June 30, 2015 and December 31, 2014 : Fair Value Measurements at June 30, 2015 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset Category Benchmark Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 4,926 $ 4,926 $ — $ — Actively Managed (a): All Cap Equity Russell 3000 Value 4,174 4,149 25 — U.S. Large Cap Equity Russell 1000, Russell 1000 Growth, Russell 1000 Value 36,347 36,347 — — U.S. Mid Cap Equity Russell Mid Cap, Russell Mid Cap Growth, Russell Mid Cap Value 6,195 6,195 — — U.S. Small Cap Equity Russell 2000, Russell 2000 Growth, Russell 2000 Value 5,287 5,287 — — Non-U.S. Large Cap Equity MSCI EAFE 5,102 5,102 — — REIT NAREIT - Equity REIT'S 4,869 — 4,869 — Fixed Income (b) (b) 37,856 — 37,856 — Total $ 104,756 $ 62,006 $ 42,750 $ — The Plan has a current target allocation of 55% invested in a diversified array of equity securities to provide long-term capital appreciation and 45% invested in a diversified array of fixed income securities to provide preservation of capital plus generation of income. (a) Actively managed portfolio of securities with the goal to exceed the stated benchmark performance. (b) Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate. Fair Value Measurements at December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset Category Benchmark Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 6,811 $ 6,811 $ — $ — Actively Managed (a): All Cap Equity Russell 3000 Vaue 4,266 4,237 29 — U.S. Large Cap Equity Russell 1000, Russell 1000 Growth, Russell 1000 Value 35,489 35,489 — — U.S. Mid Cap Equity Russell Mid Cap, Russell Mid Cap Growth, Russell Mid Cap Value 6,069 6,069 — — U.S. Small Cap Equity Russell 2000, Russell 2000 Growth, Russell 2000 Value 4,982 4,982 — — Non-U.S. Large Cap Equity MSCI EAFE 4,758 4,758 — — REIT NAREIT - Equity REIT'S 5,069 — 5,069 — Fixed Income (b) (b) 36,435 — 36,435 — Total $ 103,879 $ 62,346 $ 41,533 $ — The Plan has a current target allocation of 55% invested in a diversified array of equity securities to provide long-term capital appreciation and 45% invested in a diversified array of fixed income securities to provide preservation of capital plus generation of income. (a) Actively managed portfolio of securities with the goal to exceed the stated benchmark performance. (b) Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate. |
Segment and Nonregulated Busi21
Segment and Nonregulated Business Reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The tables below set forth information relating to SJW Corp.'s reportable segments and distribution of regulated and non-tariffed business activities within the reportable segments. Certain allocated assets, revenue and expenses have been included in the reportable segment amounts. Other business activity of SJW Corp. not included in the reportable segments is included in the “All Other” category. For Three Months Ended June 30, 2015 Water Utility Services Real Estate Services All Other* SJW Corp. Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 69,011 1,588 1,803 — 69,011 3,391 72,402 Operating expense 52,555 1,343 1,003 291 52,555 2,637 55,192 Operating income (loss) 16,456 245 800 (291 ) 16,456 754 17,210 Net income (loss) 7,556 55 272 (422 ) 7,556 (95 ) 7,461 Depreciation and amortization 9,693 121 388 — 9,693 509 10,202 Senior note, mortgage and other interest expense 4,814 — 255 549 4,814 804 5,618 Income tax expense (benefit) in net income 4,457 93 163 (308 ) 4,457 (52 ) 4,405 Assets $ 1,205,819 18,611 67,066 4,361 1,205,819 90,038 1,295,857 For Three Months Ended June 30, 2014 Water Utility Services Real Estate Services All Other* SJW Corp. Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 66,967 1,553 1,836 — 66,967 3,389 70,356 Operating expense 55,642 1,216 1,055 322 55,642 2,593 58,235 Operating income (loss) 11,325 337 781 (322 ) 11,325 796 12,121 Net income (loss) 5,591 132 380 743 5,591 1,255 6,846 Depreciation and amortization 8,989 90 416 — 8,989 506 9,495 Senior note, mortgage and other interest expense 4,139 — 262 553 4,139 815 4,954 Income tax expense (benefit) in net income 2,208 117 273 494 2,208 884 3,092 Assets $ 1,053,145 17,487 66,300 10,090 1,053,145 93,877 1,147,022 For Six Months Ended June 30, 2015 Water Utility Services Real Estate Services All Other* SJW Corp. Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 127,898 3,035 3,581 — 127,898 6,616 134,514 Operating expense 99,477 2,305 2,027 690 99,477 5,022 104,499 Operating income (loss) 28,421 730 1,554 (690 ) 28,421 1,594 30,015 Net income (loss) 12,257 273 532 (906 ) 12,257 (101 ) 12,156 Depreciation and amortization 19,372 211 778 — 19,372 989 20,361 Senior note, mortgage and other interest expense 9,644 — 510 1,116 9,644 1,626 11,270 Income tax expense (benefit) in net income 7,275 275 308 (659 ) 7,275 (76 ) 7,199 Assets $ 1,205,819 18,611 67,066 4,361 1,205,819 90,038 1,295,857 For Six Months Ended June 30, 2014 Water Utility Services Real Estate Services All Other* SJW Corp. Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 118,593 2,781 3,578 — 118,593 6,359 124,952 Operating expense 102,105 2,088 2,077 507 102,105 4,672 106,777 Operating income (loss) 16,488 693 1,501 (507 ) 16,488 1,687 18,175 Net income (loss) 6,494 283 584 391 6,494 1,258 7,752 Depreciation and amortization 17,966 180 834 — 17,966 1,014 18,980 Senior note, mortgage and other interest expense 8,220 — 499 1,105 8,220 1,604 9,824 Income tax expense (benefit) in net income 2,760 241 426 226 2,760 893 3,653 Assets $ 1,053,145 17,487 66,300 10,090 1,053,145 93,877 1,147,022 * The “All Other” category includes the accounts of SJW Corp. on a stand-alone basis and SJW Group, Inc. For the three and six months ended June 30, 2015 , SJW Group, Inc. had no revenue or expenses recorded and held no assets as of June 30, 2015 . |
Balancing and Memorandum Acco22
Balancing and Memorandum Account Recovery Procedures (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Regulated Operations [Abstract] | |
Public Utilities General Disclosures | San Jose Water Company met the recognition requirements for certain of its balancing and memorandum accounts and as such amounts subject to balancing and memorandum accounts and revenue and regulatory assets changed as follows: Three months ended June 30, 2015 Three months ended June 30, 2014 Beginning Balance Revenue Increase(Reduction) Refunds (Collections) Ending Balance Beginning Balance Revenue Increase(Reduction) Refunds (Collections) Ending Balance Memorandum accounts $ (789 ) 397 163 (229 ) $ (1,699 ) 187 — (1,512 ) Balancing accounts: Water supply costs 825 304 (59 ) 1,070 (2,772 ) 1,551 — (1,221 ) Pension 423 143 (427 ) 139 9,765 (92 ) — 9,673 Drought surcharges — — (80 ) (80 ) — — — — 2012 General Rate Case true-up 43,517 61 (3,211 ) 40,367 — — — — All others 1,593 (108 ) (32 ) 1,453 1,985 (127 ) — 1,858 Total balancing accounts $ 46,358 400 (3,809 ) 42,949 $ 8,978 1,332 — 10,310 Total $ 45,569 797 (3,646 ) 42,720 $ 7,279 1,519 — 8,798 Six months ended June 30, 2015 Six months ended June 30, 2014 Beginning Balance Revenue Increase(Reduction) Refunds (Collections) Ending Balance Beginning Balance Revenue Increase(Reduction) Refunds (Collections) Ending Balance Memorandum accounts $ (1,377 ) 821 327 (229 ) $ (1,896 ) 384 — (1,512 ) Balancing accounts: Water supply costs 890 292 (112 ) 1,070 (2,378 ) 1,157 — (1,221 ) Pension 1,412 (463 ) (810 ) 139 9,734 (61 ) — 9,673 Drought surcharges — — (80 ) (80 ) — — — — 2012 General Rate Case true-up 44,400 1,937 (5,970 ) 40,367 — — — — All others 1,736 (223 ) (60 ) 1,453 2,229 (371 ) — 1,858 Total balancing accounts $ 48,438 1,543 (7,032 ) 42,949 $ 9,585 725 — 10,310 Total $ 47,061 2,364 (6,705 ) 42,720 $ 7,689 1,109 — 8,798 |
Regulatory Assets and Liabili23
Regulatory Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Schedule of Regulatory Assets | Regulatory assets and liabilities are comprised of the following as of June 30, 2015 and December 31, 2014 : Description June 30, 2015 December 31, 2014 Regulatory assets: Income tax temporary differences, net $ 6,731 6,731 Postretirement pensions and other medical benefits 115,494 115,494 Balancing and memorandum accounts, net 42,720 47,061 Other, net 5,744 5,577 Total regulatory assets, net in Consolidated Balance Sheets $ 170,689 174,863 Less: current regulatory asset, net 16,971 16,853 Total regulatory assets, net, less current portion $ 153,718 158,010 |
General -New Accounting Pronoun
General -New Accounting Pronouncement (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Intangible assets | $ 22,182 | $ 19,333 |
Cumulative effect of prospective application of new accounting principle | 436 | |
Infrastructure [Member] | Adjustments for New Accounting Pronouncement [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Intangible assets | 1,859 | |
Accumulated amortization | $ 377 |
General - Additional Informatio
General - Additional Information (Details) - USD ($) $ in Thousands | Apr. 01, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 26, 2015 | Jan. 05, 2015 |
Regulatory Liabilities [Line Items] | ||||||
Water reduction target goal (percent) | 20.00% | |||||
Mandatory Water Reduction, Percentage | 25.00% | |||||
Authorized Regulatory Surcharge, Gross | $ 1,937 | |||||
Memorandum Account, Recovery Request | $ 9,567 | $ 976 | ||||
Scenario, Forecast [Member] | ||||||
Regulatory Liabilities [Line Items] | ||||||
Water reduction target goal (percent) | 30.00% |
General - Earnings Per Share (D
General - Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Restricted Stock and Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive restricted common stock units excluded from computation of earnings per share (shares) | 1,321 | 680 | 1,439 | 1,129 |
General - Depreciation (Details
General - Depreciation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
General and Administrative Expense | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 392 | $ 396 | $ 791 | $ 792 |
Equity Plans (Details)
Equity Plans (Details) $ / shares in Units, $ in Thousands | Apr. 29, 2015vesting_installment$ / sharesshares | Jan. 27, 2015$ / sharesshares | Jan. 02, 2015vesting_installment$ / sharesshares | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation costs charged to income: | $ 362 | $ 207 | $ 761 | $ 451 | |||
Excess tax benefits realized from share options exercised and stock issuance: | 108 | 251 | 634 | 309 | |||
Proceeds from the exercise of stock options and similar instruments: | $ 0 | 8 | $ 433 | 484 | |||
Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Remaining shares available for issuance under the Incentive Plan (shares) | shares | 1,037,068 | 1,037,068 | |||||
Shares issuable upon exercise of Incentive Plan awards (shares) | shares | 246,186 | ||||||
Employee Stock Purchase Plan (ESPP) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation costs charged to income: | $ 0 | 0 | $ 76 | 72 | |||
Proceeds from the exercise of stock options and similar instruments: | 0 | 0 | 433 | 406 | |||
Unrecognized compensation costs | $ 14 | $ 14 | |||||
Purchase price of common stock under ESPP (percent) | 85.00% | ||||||
Maximum percentage of base compensation employees can designate for stock purchases under ESPP (percent) | 10.00% | 10.00% | |||||
Plan expense | $ 43 | 39 | $ 82 | 75 | |||
Dividend Reinvestment and Stock Purchase Plan (DRSPP) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Proceeds from the exercise of stock options and similar instruments: | 0 | 8 | 0 | $ 34 | |||
Number of shares issued under the DRSPP (shares) | shares | 1,151 | ||||||
Restricted stock and deferred restricted stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation costs charged to income: | 362 | 207 | 685 | $ 379 | |||
Excess tax benefits realized from share options exercised and stock issuance: | 108 | 251 | 634 | 250 | |||
Unrecognized compensation costs | 1,927 | $ 1,927 | |||||
Recognition period for unrecognized compensation cost | 1 year 1 month 21 days | ||||||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Excess tax benefits realized from share options exercised and stock issuance: | 0 | 0 | $ 0 | 59 | |||
Proceeds from the exercise of stock options and similar instruments: | $ 0 | $ 0 | $ 0 | $ 44 | |||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of equity instruments granted (shares) | shares | 9,352 | 6,639 | 12,271 | ||||
Number of equal successive installments for vesting of stock awards (vesting installments) | vesting_installment | 3 | ||||||
Grant date fair value of equity instruments granted (usd per share) | $ / shares | $ 34.36 | $ 29.83 | |||||
Common Stock | Employee Stock Purchase Plan (ESPP) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for issuance under the plan (shares) | shares | 400,000 | 400,000 | |||||
Board Member [Member] | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Grant date fair value of equity instruments granted (usd per share) | $ / shares | $ 29.17 | ||||||
Executive Officer [Member] | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of equity instruments granted (shares) | shares | 3,252 | ||||||
Grant date fair value of equity instruments granted (usd per share) | $ / shares | $ 34.36 | ||||||
Officer [Member] | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of equity instruments granted (shares) | shares | 501 | ||||||
Number of equal successive installments for vesting of stock awards (vesting installments) | vesting_installment | 3 | ||||||
Grant date fair value of equity instruments granted (usd per share) | $ / shares | $ 27.64 | ||||||
Officer [Member] | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of equity instruments granted (shares) | shares | 501 | ||||||
Grant date fair value of equity instruments granted (usd per share) | $ / shares | $ 29.37 | ||||||
Officer [Member] | Minimum | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Target vesting percentage | 0.00% | ||||||
Officer [Member] | Maximum | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Target vesting percentage | 150.00% |
Real Estate Investments (Detail
Real Estate Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Schedule of Investments [Line Items] | |||||
Land | $ 17,297 | $ 17,297 | $ 17,297 | ||
Buildings and improvements | 56,267 | 56,267 | 56,168 | ||
Intangibles | 329 | 329 | 329 | ||
Subtotal | 73,893 | 73,893 | 73,794 | ||
Less accumulated depreciation and amortization | 12,371 | 12,371 | 11,593 | ||
Total | 61,522 | 61,522 | $ 62,201 | ||
Proceeds from Sale of Real Estate Held-for-investment | $ 4,450 | ||||
Gain on sale of real estate investment | $ 0 | $ 273 | $ 0 | 273 | |
Real Estate Selling Expenses | $ 169 | ||||
Minimum | |||||
Schedule of Investments [Line Items] | |||||
Estimated useful life | 5 years | ||||
Maximum | |||||
Schedule of Investments [Line Items] | |||||
Estimated useful life | 39 years |
Defined Benfit Plan (Details)
Defined Benfit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||||
Components of Net Periodic Benefit Cost [Abstract] | ||||||||
Service cost | $ 1,363 | $ 1,051 | $ 2,726 | $ 2,111 | ||||
Interest cost | 1,711 | 1,652 | 3,423 | 3,303 | ||||
Other cost | 1,192 | 625 | 2,384 | 1,256 | ||||
Expected return on assets | (1,817) | (1,674) | (3,633) | (3,341) | ||||
Net periodic benefit cost | 2,449 | $ 1,654 | 4,900 | $ 3,329 | ||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 104,756 | 104,756 | $ 103,879 | |||||
Employer Contributions [Abstract] | ||||||||
Estimated employer contributions for the current fiscal year | 9,256 | 9,256 | ||||||
Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 62,006 | 62,006 | 62,346 | |||||
Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 42,750 | 42,750 | 41,533 | |||||
Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | $ 0 | 0 | |||||
Equity Securities [Member] | ||||||||
Plan Assets [Abstract] | ||||||||
Target plan asset allocations | 55.00% | 55.00% | ||||||
Fixed Income Securities [Member] | ||||||||
Plan Assets [Abstract] | ||||||||
Target plan asset allocations | 45.00% | 45.00% | ||||||
Cash and cash equivalents | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 4,926 | $ 4,926 | 6,811 | |||||
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 4,926 | 4,926 | 6,811 | |||||
Cash and cash equivalents | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | 0 | 0 | |||||
Cash and cash equivalents | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | 0 | 0 | |||||
Actively Managed | All Cap Equity | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 4,174 | [1] | 4,174 | [1] | 4,266 | [2] | ||
Actively Managed | All Cap Equity | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 4,149 | [1] | 4,149 | [1] | 4,237 | [2] | ||
Actively Managed | All Cap Equity | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 25 | [1] | 25 | [1] | 29 | [2] | ||
Actively Managed | All Cap Equity | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | U.S. Large Cap Equity | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 36,347 | [1] | 36,347 | [1] | 35,489 | [2] | ||
Actively Managed | U.S. Large Cap Equity | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 36,347 | [1] | 36,347 | [1] | 35,489 | [2] | ||
Actively Managed | U.S. Large Cap Equity | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | U.S. Large Cap Equity | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | U.S. Mid Cap Equity | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 6,195 | [1] | 6,195 | [1] | 6,069 | [2] | ||
Actively Managed | U.S. Mid Cap Equity | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 6,195 | [1] | 6,195 | [1] | 6,069 | [2] | ||
Actively Managed | U.S. Mid Cap Equity | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | U.S. Mid Cap Equity | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | U.S. Small Cap Equity | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 5,287 | [1] | 5,287 | [1] | 4,982 | [2] | ||
Actively Managed | U.S. Small Cap Equity | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 5,287 | [1] | 5,287 | [1] | 4,982 | [2] | ||
Actively Managed | U.S. Small Cap Equity | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | U.S. Small Cap Equity | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | Non-U.S. Large Cap Equity | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 5,102 | [1] | 5,102 | [1] | 4,758 | [2] | ||
Actively Managed | Non-U.S. Large Cap Equity | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 5,102 | [1] | 5,102 | [1] | 4,758 | [2] | ||
Actively Managed | Non-U.S. Large Cap Equity | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | Non-U.S. Large Cap Equity | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | REIT | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 4,869 | [1] | 4,869 | [1] | 5,069 | [2] | ||
Actively Managed | REIT | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | REIT | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 4,869 | [1] | 4,869 | [1] | 5,069 | [2] | ||
Actively Managed | REIT | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Fixed Income | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 37,856 | [3] | 37,856 | [3] | 36,435 | [4] | ||
Fixed Income | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [3] | 0 | [3] | 0 | [4] | ||
Fixed Income | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 37,856 | [3] | 37,856 | [3] | 36,435 | [4] | ||
Fixed Income | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | $ 0 | [3] | $ 0 | [3] | $ 0 | [4] | ||
[1] | Actively managed portfolio of securities with the goal to exceed the stated benchmark performance. | |||||||
[2] | Actively managed portfolio of securities with the goal to exceed the stated benchmark performance. | |||||||
[3] | Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate. | |||||||
[4] | Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate. |
Segment and Nonregulated Busi31
Segment and Nonregulated Business Reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)subsidiaries | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | ||
Segment Reporting Information [Line Items] | ||||||
Number of Subsidiaries | subsidiaries | 5 | |||||
Operating revenue | $ 72,402 | $ 70,356 | $ 134,514 | $ 124,952 | ||
Operating expense | 55,192 | 58,235 | 104,499 | 106,777 | ||
Operating income (loss) | 17,210 | 12,121 | 30,015 | 18,175 | ||
Net income (loss) | 7,461 | 6,846 | 12,156 | 7,752 | ||
Depreciation and amortization | 10,202 | 9,495 | 20,361 | 18,980 | ||
Senior note, mortgage and other interest expense | 5,618 | 4,954 | 11,270 | 9,824 | ||
Income tax expense (benefit) in net income | 4,405 | 3,092 | 7,199 | 3,653 | ||
Assets | 1,295,857 | 1,147,022 | 1,295,857 | 1,147,022 | $ 1,269,304 | |
Water Utility Services | Regulated | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenue | 69,011 | 66,967 | 127,898 | 118,593 | ||
Operating expense | 52,555 | 55,642 | 99,477 | 102,105 | ||
Operating income (loss) | 16,456 | 11,325 | 28,421 | 16,488 | ||
Net income (loss) | 7,556 | 5,591 | 12,257 | 6,494 | ||
Depreciation and amortization | 9,693 | 8,989 | 19,372 | 17,966 | ||
Senior note, mortgage and other interest expense | 4,814 | 4,139 | 9,644 | 8,220 | ||
Income tax expense (benefit) in net income | 4,457 | 2,208 | 7,275 | 2,760 | ||
Assets | 1,205,819 | 1,053,145 | 1,205,819 | 1,053,145 | ||
Water Utility Services | Non-tariffed | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenue | 1,588 | 1,553 | 3,035 | 2,781 | ||
Operating expense | 1,343 | 1,216 | 2,305 | 2,088 | ||
Operating income (loss) | 245 | 337 | 730 | 693 | ||
Net income (loss) | 55 | 132 | 273 | 283 | ||
Depreciation and amortization | 121 | 90 | 211 | 180 | ||
Senior note, mortgage and other interest expense | 0 | 0 | 0 | 0 | ||
Income tax expense (benefit) in net income | 93 | 117 | 275 | 241 | ||
Assets | 18,611 | 17,487 | 18,611 | 17,487 | ||
Real Estate Services | Non-tariffed | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenue | 1,803 | 1,836 | 3,581 | 3,578 | ||
Operating expense | 1,003 | 1,055 | 2,027 | 2,077 | ||
Operating income (loss) | 800 | 781 | 1,554 | 1,501 | ||
Net income (loss) | 272 | 380 | 532 | 584 | ||
Depreciation and amortization | 388 | 416 | 778 | 834 | ||
Senior note, mortgage and other interest expense | 255 | 262 | 510 | 499 | ||
Income tax expense (benefit) in net income | 163 | 273 | 308 | 426 | ||
Assets | 67,066 | 66,300 | 67,066 | 66,300 | ||
All Other | Non-tariffed | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenue | [1] | 0 | 0 | 0 | 0 | |
Operating expense | [1] | 291 | 322 | 690 | 507 | |
Operating income (loss) | [1] | (291) | (322) | (690) | (507) | |
Net income (loss) | [1] | (422) | 743 | (906) | 391 | |
Depreciation and amortization | [1] | 0 | 0 | 0 | 0 | |
Senior note, mortgage and other interest expense | [1] | 549 | 553 | 1,116 | 1,105 | |
Income tax expense (benefit) in net income | [1] | (308) | 494 | (659) | 226 | |
Assets | [1] | 4,361 | 10,090 | 4,361 | 10,090 | |
SJW Corp. | Regulated | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenue | 69,011 | 66,967 | 127,898 | 118,593 | ||
Operating expense | 52,555 | 55,642 | 99,477 | 102,105 | ||
Operating income (loss) | 16,456 | 11,325 | 28,421 | 16,488 | ||
Net income (loss) | 7,556 | 5,591 | 12,257 | 6,494 | ||
Depreciation and amortization | 9,693 | 8,989 | 19,372 | 17,966 | ||
Senior note, mortgage and other interest expense | 4,814 | 4,139 | 9,644 | 8,220 | ||
Income tax expense (benefit) in net income | 4,457 | 2,208 | 7,275 | 2,760 | ||
Assets | 1,205,819 | 1,053,145 | 1,205,819 | 1,053,145 | ||
SJW Corp. | Non-tariffed | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenue | 3,391 | 3,389 | 6,616 | 6,359 | ||
Operating expense | 2,637 | 2,593 | 5,022 | 4,672 | ||
Operating income (loss) | 754 | 796 | 1,594 | 1,687 | ||
Net income (loss) | (95) | 1,255 | (101) | 1,258 | ||
Depreciation and amortization | 509 | 506 | 989 | 1,014 | ||
Senior note, mortgage and other interest expense | 804 | 815 | 1,626 | 1,604 | ||
Income tax expense (benefit) in net income | (52) | 884 | (76) | 893 | ||
Assets | $ 90,038 | $ 93,877 | $ 90,038 | $ 93,877 | ||
[1] | * The “All Other” category includes the accounts of SJW Corp. on a stand-alone basis and SJW Group, Inc. For the three and six months ended June 30, 2015, SJW Group, Inc. had no revenue or expenses recorded and held no assets as of June 30, 2015. |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 384,635 | $ 384,949 |
Quoted Prices in Active Markets for Identical Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment in California Water Service Group | 5,922 | 6,378 |
Significant Observable Inputs | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 440,053 | $ 460,171 |
Regulatory Rate Filings (Detail
Regulatory Rate Filings (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2015 | May. 29, 2015 | Apr. 23, 2015 | Mar. 26, 2015 | Jan. 05, 2015 | |
Regulatory Liabilities [Line Items] | |||||
Authorized Regulatory Surcharge, Gross | $ 1,937 | ||||
Regulatory Rate Filings, Requested Rate Increase, Year One | $ 34,928 | ||||
Regulatory Rate Filings, Requested Rate Increase as Percentage of Total Revenue at Time of Request, Year One | 12.22% | ||||
Regulatory Rate Filings, Requested Rate Increase, Year Two | $ 9,954 | ||||
Regulatory Rate Filings, Proposed Rate Increase, Percent of Authorized Revenue, Year Two | 3.11% | ||||
Regulatory Rate Filings, Requested Rate Increase, Year Three | $ 17,567 | ||||
Regulatory Rate Filings, Requested Rate Increase, Percent of Authorized Revenue, Year Three | 5.36% | ||||
Balancing Account, Recovery Request | $ 4,752 | ||||
Memorandum Account, Recovery Request | $ 9,567 | $ 976 | |||
Regulatory Rate Filings, Recommended Rate Increase, Year One | $ 23,468 | ||||
Regulatory Rate Filings, Recommended Rate Increase as Percentage of Total Revenue at Time of Request, Year One | 8.54% | ||||
Regulatory Rate Filings, Recommended Rate Increase, Year Two | $ 13,803 | ||||
Regulatory Rate Filings, Recommended Rate Increase as Percentage of Total Revenue at Time of Request, Year Two | 4.42% | ||||
Regulatory Rate Filings, Recommended Rate Increase, Year Three | $ 16,261 | ||||
Regulatory Rate Filings, Recommended Rate Increase as Percentage of Total Revenue at Time of Request, Year Three | 4.95% | ||||
Regulatory Rate Filings, Requested Rate Increase, Authorized Revenue | $ 18,357 | ||||
Regulatory Rate Filings, Increase Requested, Percent of Authorized Revenue | 6.44% |
Balancing and Memorandum Acco34
Balancing and Memorandum Account Recovery Procedures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 26, 2015 | Jan. 05, 2015 | |
Memorandum Accounts [Roll Forward] | ||||||
Beginning Balance | $ (789) | $ (1,699) | $ (1,377) | $ (1,896) | ||
Revenue Increase(Reduction) | 397 | 187 | 821 | 384 | ||
Refunds (Collections) | 163 | 0 | 327 | 0 | ||
Ending Balance | (229) | (1,512) | (229) | (1,512) | ||
Balancing Accounts [Roll Forward] | ||||||
Beginning Balance | 46,358 | 8,978 | 48,438 | 9,585 | ||
Revenue Increase(Reduction) | 400 | 1,332 | 1,543 | 725 | ||
Refunds (Collections) | (3,809) | 0 | (7,032) | 0 | ||
Ending Balance | 42,949 | 10,310 | 42,949 | 10,310 | ||
Balancing and Memorandum Account [Roll Forward] | ||||||
Beginning Balance | 45,569 | 7,279 | 47,061 | 7,689 | ||
Revenue Increase(Reduction) | 797 | 1,519 | 2,364 | 1,109 | ||
Refunds (Collections) | (3,646) | 0 | (6,705) | 0 | ||
Ending Balance | 42,720 | 8,798 | 42,720 | 8,798 | ||
Authorized Regulatory Surcharge, Gross | 1,937 | |||||
Net under-collected balancing and memorandum accounts | 9,122 | 9,122 | ||||
Memorandum Account, Recovery Request | $ 9,567 | $ 976 | ||||
Water supply balancing accounts | ||||||
Balancing Accounts [Roll Forward] | ||||||
Beginning Balance | 825 | (2,772) | 890 | (2,378) | ||
Revenue Increase(Reduction) | 304 | 1,551 | 292 | 1,157 | ||
Refunds (Collections) | (59) | 0 | (112) | 0 | ||
Ending Balance | 1,070 | (1,221) | 1,070 | (1,221) | ||
Pension balancing account | ||||||
Balancing Accounts [Roll Forward] | ||||||
Beginning Balance | 423 | 9,765 | 1,412 | 9,734 | ||
Revenue Increase(Reduction) | 143 | (92) | (463) | (61) | ||
Refunds (Collections) | (427) | 0 | (810) | 0 | ||
Ending Balance | 139 | 9,673 | 139 | 9,673 | ||
Drought Surcharges [Member] | ||||||
Balancing Accounts [Roll Forward] | ||||||
Beginning Balance | 0 | 0 | 0 | 0 | ||
Revenue Increase(Reduction) | 0 | 0 | 0 | 0 | ||
Refunds (Collections) | (80) | 0 | (80) | 0 | ||
Ending Balance | (80) | 0 | (80) | 0 | ||
Balancing and memorandum accounts, net | ||||||
Balancing Accounts [Roll Forward] | ||||||
Beginning Balance | 43,517 | 0 | 44,400 | 0 | ||
Revenue Increase(Reduction) | 61 | 0 | 1,937 | 0 | ||
Refunds (Collections) | (3,211) | 0 | (5,970) | 0 | ||
Ending Balance | 40,367 | 0 | 40,367 | 0 | ||
Other, net | ||||||
Balancing Accounts [Roll Forward] | ||||||
Beginning Balance | 1,593 | 1,985 | 1,736 | 2,229 | ||
Revenue Increase(Reduction) | (108) | (127) | (223) | (371) | ||
Refunds (Collections) | (32) | 0 | (60) | 0 | ||
Ending Balance | $ 1,453 | $ 1,858 | $ 1,453 | $ 1,858 |
Regulatory Assets and Liabili35
Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Regulatory Assets [Line Items] | ||
Net Regulatory Assets | $ 170,689 | $ 174,863 |
Less: current regulatory asset, net | 16,971 | 16,853 |
Net regulatory assets, less current portion | 153,718 | 158,010 |
Income tax temporary differences, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: | 6,731 | 6,731 |
Postretirement pensions and other medical benefits | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: | 115,494 | 115,494 |
Balancing and memorandum accounts, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: | 42,720 | 47,061 |
Other, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: | $ 5,744 | $ 5,577 |