Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 20, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Trading Symbol | wtr | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | AQUA AMERICA INC | |
Entity Central Index Key | 78,128 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 177,690,598 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Property, plant and equipment, at cost | $ 6,857,093 | $ 6,509,117 |
Less: accumulated depreciation | 1,580,619 | 1,507,502 |
Net property, plant and equipment | 5,276,474 | 5,001,615 |
Current assets: | ||
Cash and cash equivalents | 4,139 | 3,763 |
Accounts receivable and unbilled revenues, net | 104,894 | 97,394 |
Inventory, materials and supplies | 16,557 | 12,961 |
Prepayments and other current assets | 11,209 | 12,804 |
Assets held for sale | 1,543 | 1,728 |
Total current assets | 138,342 | 128,650 |
Regulatory assets | 1,044,787 | 948,647 |
Deferred charges and other assets | 36,169 | 30,845 |
Investment in joint venture | 7,379 | 7,026 |
Goodwill | 42,230 | 42,208 |
Total assets | 6,545,381 | 6,158,991 |
Stockholders' equity: | ||
Common stock at $.50 par value, authorized 300,000,000 shares, issued 180,669,222 and 180,311,345 as of September 30, 2017 and December 31, 2016 | 90,334 | 90,155 |
Capital in excess of par value | 804,753 | 797,513 |
Retained earnings | 1,115,601 | 1,032,844 |
Treasury stock, at cost, 2,984,973 and 2,916,969 shares as of September 30, 2017 and December 31, 2016 | (73,229) | (71,113) |
Accumulated other comprehensive income | 806 | 669 |
Total stockholders' equity | 1,938,265 | 1,850,068 |
Long-term debt, excluding current portion | 1,974,327 | 1,759,962 |
Less: debt issuance costs | 21,854 | 22,357 |
Long-term debt, excluding current portion, net of debt issuance costs | 1,952,473 | 1,737,605 |
Commitments and contingencies (See Note 13) | ||
Current liabilities: | ||
Current portion of long-term debt | 84,704 | 150,671 |
Loans payable | 20,990 | 6,535 |
Accounts payable | 63,358 | 59,872 |
Accrued interest | 23,210 | 18,367 |
Accrued taxes | 21,745 | 25,607 |
Other accrued liabilities | 38,943 | 40,484 |
Total current liabilities | 252,950 | 301,536 |
Deferred credits and other liabilities: | ||
Deferred income taxes and investment tax credits | 1,391,096 | 1,269,253 |
Customers' advances for construction | 107,715 | 91,843 |
Regulatory liabilities | 239,469 | 250,635 |
Other | 110,412 | 115,583 |
Total deferred credits and other liabilities | 1,848,692 | 1,727,314 |
Contributions in aid of construction | 553,001 | 542,468 |
Total liabilities and equity | $ 6,545,381 | $ 6,158,991 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheets [Abstract] | ||
Common stock, par value | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 180,669,222 | 180,311,345 |
Treasury stock, shares | 2,984,973 | 2,916,969 |
Consolidated Statements Of Net
Consolidated Statements Of Net Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Statements Of Net Income [Abstract] | ||||
Operating revenues | $ 215,008 | $ 226,593 | $ 606,213 | $ 623,076 |
Operating expenses: | ||||
Operations and maintenance | 67,982 | 79,812 | 207,963 | 227,347 |
Depreciation | 34,264 | 33,881 | 101,508 | 97,645 |
Amortization | 42 | 389 | 358 | 1,367 |
Taxes other than income taxes | 15,234 | 14,712 | 44,390 | 43,094 |
Total operating expenses | 117,522 | 128,794 | 354,219 | 369,453 |
Operating income | 97,486 | 97,799 | 251,994 | 253,623 |
Other expense (income): | ||||
Interest expense, net | 22,411 | 20,168 | 65,124 | 60,136 |
Allowance for funds used during construction | (3,914) | (2,267) | (10,570) | (6,446) |
Gain on sale of other assets | (43) | (62) | (322) | (390) |
Equity earnings in joint venture | (593) | (1,621) | (402) | (1,143) |
Income before income taxes | 79,625 | 81,581 | 198,164 | 201,466 |
Provision for income taxes | 3,400 | 8,411 | 11,899 | 16,933 |
Net income | $ 76,225 | $ 73,170 | $ 186,265 | $ 184,533 |
Net income per common share: | ||||
Basic | $ 0.43 | $ 0.41 | $ 1.05 | $ 1.04 |
Diluted | $ 0.43 | $ 0.41 | $ 1.05 | $ 1.04 |
Average common shares outstanding during the period: | ||||
Basic | 177,660 | 177,336 | 177,583 | 177,243 |
Diluted | 178,124 | 177,817 | 178,103 | 177,781 |
Cash dividends declared per common share | $ 0.2047 | $ 0.191 | $ 0.5873 | $ 0.5473 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Consolidated Statements Of Comprehensive Income [Abstract] | |||||
Net income | $ 76,225 | $ 73,170 | $ 186,265 | $ 184,533 | |
Other comprehensive income, net of tax: | |||||
Unrealized holding gain on investments, net of tax expense of $22 and $11 for the three months, and $73 and $14 for the nine months ended September 30, 2017 and 2016, respectively | 42 | 20 | 137 | 26 | |
Reclassification of gain on sale of investment to net income, net of tax of $30 for the nine months ended September 30, 2016 | [1] | (57) | |||
Comprehensive income | $ 76,267 | $ 73,190 | $ 186,402 | $ 184,502 | |
[1] | Amount of pre-tax gain of $87 reclassified from accumulated other comprehensive income to gain on sale of other assets on the consolidated statements of net income for the nine months ended September 30, 2016. |
Consolidated Statements Of Com6
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Income taxes arising from net unrealized holding gain on investments | $ 22 | $ 11 | $ 73 | $ 14 |
Income tax benefit arising from reclassification adjustment for loss reported in net income | 30 | |||
Pre-tax gain of reclassification adjustment for loss reported in net income | $ 87 |
Consolidated Statements Of Capi
Consolidated Statements Of Capitalization - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Stockholders' equity: | ||
Common stock, $.50 par value | $ 90,334 | $ 90,155 |
Capital in excess of par value | 804,753 | 797,513 |
Retained earnings | 1,115,601 | 1,032,844 |
Treasury stock, at cost | (73,229) | (71,113) |
Accumulated other comprehensive income | 806 | 669 |
Total stockholders' equity | 1,938,265 | 1,850,068 |
Long-term debt: | ||
Long-term debt of subsidiaries | 1,389,804 | 1,247,224 |
Total long-term debt | 2,059,031 | 1,910,633 |
Current portion of long-term debt | 84,704 | 150,671 |
Long-term debt, excluding current portion | 1,974,327 | 1,759,962 |
Less: debt issuance costs | 21,854 | 22,357 |
Long-term debt, excluding current portion, net of debt issuance costs | 1,952,473 | 1,737,605 |
Total capitalization | 3,890,738 | 3,587,673 |
Long-Term Debt Of Subsidiaries 0.00% To 0.99% [Member] | ||
Long-term debt: | ||
Long-term debt of subsidiaries | 4,196 | 4,661 |
Long-Term Debt Of Subsidiaries 1.00% To 1.99% [Member] | ||
Long-term debt: | ||
Long-term debt of subsidiaries | 13,196 | 15,539 |
Long-Term Debt Of Subsidiaries 2.00% To 2.99% [Member] | ||
Long-term debt: | ||
Long-term debt of subsidiaries | 19,689 | 19,668 |
Long-Term Debt Of Subsidiaries 3.00% To 3.99% [Member] | ||
Long-term debt: | ||
Long-term debt of subsidiaries | 475,904 | 381,944 |
Long-Term Debt Of Subsidiaries 4.00% To 4.99% [Member] | ||
Long-term debt: | ||
Long-term debt of subsidiaries | 556,681 | 487,318 |
Long-Term Debt Of Subsidiaries 5.00% To 5.99% [Member] | ||
Long-term debt: | ||
Long-term debt of subsidiaries | 205,703 | 213,078 |
Long-Term Debt Of Subsidiaries 6.00% To 6.99% [Member] | ||
Long-term debt: | ||
Long-term debt of subsidiaries | 44,000 | 52,985 |
Long-Term Debt Of Subsidiaries 7.00% To 7.99% [Member] | ||
Long-term debt: | ||
Long-term debt of subsidiaries | 32,521 | 33,066 |
Long-Term Debt Of Subsidiaries 8.00% To 8.99% [Member] | ||
Long-term debt: | ||
Long-term debt of subsidiaries | 6,214 | 6,565 |
Long-Term Debt Of Subsidiaries 9.00% To 9.99% [Member] | ||
Long-term debt: | ||
Long-term debt of subsidiaries | 25,700 | 26,400 |
Long-Term Debt Of Subsidiaries 10.00% To 10.99% [Member] | ||
Long-term debt: | ||
Long-term debt of subsidiaries | 6,000 | 6,000 |
Revolving Credit Agreement, Due 2021 [Member] | ||
Long-term debt: | ||
Notes payable to bank under revolving credit agreement, variable rate, due 2021 | 49,000 | 25,000 |
Bank notes at 1.975% and 2.48% due 2018 and 2019 [Member] | ||
Long-term debt: | ||
Unsecured notes payable | 100,000 | 100,000 |
Notes ranging from 3.01% to 3.59% due 2027 through 2041 [Member] | ||
Long-term debt: | ||
Unsecured notes payable | 245,000 | 245,000 |
Notes Ranging From 4.62% To 4.87%, due 2018 through 2024 [Member] | ||
Long-term debt: | ||
Unsecured notes payable | 122,800 | 133,600 |
Notes Ranging From 5.20% To 5.95%, due 2018 through 2037 [Member] | ||
Long-term debt: | ||
Unsecured notes payable | $ 152,427 | $ 159,809 |
Consolidated Statements Of Cap8
Consolidated Statements Of Capitalization (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Common stock, par value | $ 0.50 | $ 0.50 |
Long-Term Debt Of Subsidiaries 10.00% To 10.99% [Member] | ||
Maturity date | 2,018 | 2,018 |
Revolving Credit Agreement, Due 2021 [Member] | ||
Maturity date | 2,021 | 2,021 |
Bank notes at 1.975% due 2018 [Member] | ||
Interest rate | 1.975% | 1.975% |
Maturity date | 2,018 | 2,018 |
Bank notes at 2.48% due 2019 [Member] | ||
Interest rate | 2.48% | 2.48% |
Maturity date | 2,019 | 2,019 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 0.00% To 0.99% [Member] | ||
Interest rate | 0.00% | 0.00% |
Maturity date | 2,023 | 2,023 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 1.00% To 1.99% [Member] | ||
Interest rate | 1.00% | 1.00% |
Maturity date | 2,019 | 2,019 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 2.00% To 2.99% [Member] | ||
Interest rate | 2.00% | 2.00% |
Maturity date | 2,024 | 2,024 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 3.00% To 3.99% [Member] | ||
Interest rate | 3.00% | 3.00% |
Maturity date | 2,019 | 2,019 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 4.00% To 4.99% [Member] | ||
Interest rate | 4.00% | 4.00% |
Maturity date | 2,020 | 2,020 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 5.00% To 5.99% [Member] | ||
Interest rate | 5.00% | 5.00% |
Maturity date | 2,019 | 2,019 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 6.00% To 6.99% [Member] | ||
Interest rate | 6.00% | 6.00% |
Maturity date | 2,017 | 2,017 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 7.00% To 7.99% [Member] | ||
Interest rate | 7.00% | 7.00% |
Maturity date | 2,022 | 2,022 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 8.00% To 8.99% [Member] | ||
Interest rate | 8.00% | 8.00% |
Maturity date | 2,021 | 2,021 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 9.00% To 9.99% [Member] | ||
Interest rate | 9.00% | 9.00% |
Maturity date | 2,018 | 2,018 |
Minimum [Member] | Long-Term Debt Of Subsidiaries 10.00% To 10.99% [Member] | ||
Interest rate | 10.00% | 10.00% |
Minimum [Member] | Notes ranging from 3.01% to 3.59% due 2027 through 2041 [Member] | ||
Interest rate | 3.01% | 3.01% |
Maturity date | 2,027 | 2,027 |
Minimum [Member] | Notes Ranging From 4.62% To 4.87%, due 2018 through 2024 [Member] | ||
Interest rate | 4.62% | 4.62% |
Maturity date | 2,018 | 2,018 |
Minimum [Member] | Notes Ranging From 5.20% To 5.95%, due 2018 through 2037 [Member] | ||
Interest rate | 5.20% | 5.20% |
Maturity date | 2,018 | 2,018 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 0.00% To 0.99% [Member] | ||
Interest rate | 0.99% | 0.99% |
Maturity date | 2,033 | 2,033 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 1.00% To 1.99% [Member] | ||
Interest rate | 1.99% | 1.99% |
Maturity date | 2,035 | 2,035 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 2.00% To 2.99% [Member] | ||
Interest rate | 2.99% | 2.99% |
Maturity date | 2,033 | 2,033 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 3.00% To 3.99% [Member] | ||
Interest rate | 3.99% | 3.99% |
Maturity date | 2,056 | 2,056 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 4.00% To 4.99% [Member] | ||
Interest rate | 4.99% | 4.99% |
Maturity date | 2,054 | 2,054 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 5.00% To 5.99% [Member] | ||
Interest rate | 5.99% | 5.99% |
Maturity date | 2,043 | 2,043 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 6.00% To 6.99% [Member] | ||
Interest rate | 6.99% | 6.99% |
Maturity date | 2,036 | 2,036 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 7.00% To 7.99% [Member] | ||
Interest rate | 7.99% | 7.99% |
Maturity date | 2,027 | 2,027 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 8.00% To 8.99% [Member] | ||
Interest rate | 8.99% | 8.99% |
Maturity date | 2,025 | 2,025 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 9.00% To 9.99% [Member] | ||
Interest rate | 9.99% | 9.99% |
Maturity date | 2,026 | 2,026 |
Maximum [Member] | Long-Term Debt Of Subsidiaries 10.00% To 10.99% [Member] | ||
Interest rate | 10.99% | 10.99% |
Maximum [Member] | Notes ranging from 3.01% to 3.59% due 2027 through 2041 [Member] | ||
Interest rate | 3.59% | 3.59% |
Maturity date | 2,041 | 2,041 |
Maximum [Member] | Notes Ranging From 4.62% To 4.87%, due 2018 through 2024 [Member] | ||
Interest rate | 4.87% | 4.87% |
Maturity date | 2,024 | 2,024 |
Maximum [Member] | Notes Ranging From 5.20% To 5.95%, due 2018 through 2037 [Member] | ||
Interest rate | 5.95% | 5.95% |
Maturity date | 2,037 | 2,037 |
Consolidated Statement Of Equit
Consolidated Statement Of Equity - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance at Dec. 31, 2016 | $ 90,155 | $ 797,513 | $ 1,032,844 | $ (71,113) | $ 669 | $ 1,850,068 |
Net income | 186,265 | 186,265 | ||||
Other comprehensive income, net of income tax of $73 | 137 | 137 | ||||
Dividends | (104,286) | (104,286) | ||||
Sale of stock (34,814 shares) | 17 | 1,067 | 1,084 | |||
Repurchase of stock (68,004 shares) | (2,116) | (2,116) | ||||
Equity compensation plan (165,442) shares) | 83 | (83) | ||||
Exercise of stock options (157,621) shares) | 79 | 2,524 | 2,603 | |||
Stock-based compensation | 4,379 | (204) | 4,175 | |||
Cumulative effect of change in accounting principle - windfall tax benefit | 982 | 982 | ||||
Other | (647) | (647) | ||||
Balance at Sep. 30, 2017 | $ 90,334 | $ 804,753 | $ 1,115,601 | $ (73,229) | $ 806 | $ 1,938,265 |
Consolidated Statement Of Equ10
Consolidated Statement Of Equity (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)shares | |
Consolidated Statement Of Equity (Parenthetical) [Abstract] | |
Other Comprehensive income, net of income tax | $ | $ 73 |
Sale of stock, shares | 34,814 |
Repurchase of stock, shares | 68,004 |
Equity compensation plan, shares | (165,442) |
Exercise of stock options, shares | (157,621) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flow - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 186,265 | $ 184,533 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 101,866 | 99,012 |
Deferred income taxes | 9,774 | 15,345 |
Provision for doubtful accounts | 3,476 | 3,533 |
Stock-based compensation | 4,379 | 3,642 |
Loss (gain) on sale of utility system and market-based business unit | 324 | (1,824) |
Gain on sale of other assets | (322) | (390) |
Net change in receivables, inventory and prepayments | (13,550) | (15,235) |
Net change in payables, accrued interest, accrued taxes and other accrued liabilities | 3,705 | (241) |
Pension and other postretirement benefits contributions | (15,421) | (8,145) |
Other | 1,565 | 8,404 |
Net cash flows from operating activities | 282,061 | 288,634 |
Cash flows from investing activities: | ||
Property, plant and equipment additions, including the debt component of allowance for funds used during construction of $2,533 and $1,626 | (337,731) | (270,019) |
Acquisitions of utility systems and other, net | (5,860) | (5,626) |
Net proceeds from the sale of utility system and other assets | 1,144 | 6,545 |
Other | 1,448 | (32) |
Net cash flows used in investing activities | (340,999) | (269,132) |
Cash flows from financing activities: | ||
Customers' advances and contributions in aid of construction | 5,648 | 6,006 |
Repayments of customers' advances | (3,519) | (1,882) |
Net proceeds of short-term debt | 14,455 | 31,269 |
Proceeds from long-term debt | 441,294 | 234,288 |
Repayments of long-term debt | (293,270) | (181,359) |
Change in cash overdraft position | (1,932) | (12,586) |
Proceeds from issuing common stock | 1,084 | 1,029 |
Proceeds from exercised stock options | 2,603 | 3,836 |
Stock-based compensation windfall tax benefits | 1,263 | |
Repurchase of common stock | (2,116) | (2,905) |
Dividends paid on common stock | (104,286) | (96,994) |
Other | (647) | (984) |
Net cash flows from (used in) financing activities | 59,314 | (19,019) |
Net change in cash and cash equivalents | 376 | 483 |
Cash and cash equivalents at beginning of period | 3,763 | 3,229 |
Cash and cash equivalents at end of period | 4,139 | 3,712 |
Non-cash investing activities: | ||
Property, plant and equipment additions purchased at the period end, but not yet paid for | 35,145 | 23,548 |
Non-cash customer advances and contributions in aid of construction | $ 31,615 | $ 20,065 |
Consolidated Statements Of Ca12
Consolidated Statements Of Cash Flow (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Statements Of Cash Flow [Abstract] | ||
Debt component of allowance for funds used during construction | $ 2,533 | $ 1,626 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | Note 1 – Basis of Presentation The accompanying consolidated balance sheets and statements of capitalization of Aqua America, Inc. and subsidiaries (the “Company”) at September 30 , 2017, the consolidated statements of net income and comprehensive income for the three and nine months ended September 30 , 2017 and 2016 the consolidated statements of cash flow for the nine months ended September 30 , 2017 and 2016 , and the consolidated statement of equity for the nine months ended September 30 , 2017 are unaudited, but reflect all adjustments, consisting of only normal recurring accruals, which are, in the opinion of management, necessary to present a fair statement of its consolidated financial position, consolidated changes in equity, consolidated results of operations, and consolidated cash flow for the periods presented. Because they cover interim periods, the statements and related notes to the financial statements do not include all disclosures and notes normally provided in annual financial statements and, therefore, should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . The results of operations for interim periods may not be indicative of the results that may be expected for the entire year. The December 31, 2016 consolidated balance sheet data presented herein was derived from the Company’s December 31, 2016 audited consolidated financial statements, but does not include all disclosures and notes normally provided in annual financial statements. Certain prior period amounts have been reclassified to conform to the current period presentation in the consolidated statements of cash flows: · pension and other postretirement benefit contributions, and · as a result of the early adoption, in the third quarter of 2017, of the Financial Accounting Standards Board’s (“FASB”) accounting guidance on the classification of certain cash receipts and cash payments, the presentation of debt extinguishment costs (refer to Note 15 – Recent Accounting Pronouncements ). The preparation of financial statements often requires the selection of specific accounting methods and policies. Further, significant estimates and judgments may be required in selecting and applying those methods and policies in the recognition of the assets and liabilities in its consolidated balance sheets, the revenues and expenses in its consolidated statements of net income, and the information that is contained in its summary of significant accounting policies and notes to consolidated financial statements. Making these estimates and judgments requires the analysis of information concerning events that may not yet be complete and of facts and circumstances that may change over time. Accordingly, actual amounts or future results can differ materially from those estimates that the Company include s currently in its consolidated financial statements, summary of significant accounting policies, and notes. There have been no changes to the summary of significant accounting policies previously identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill [Abstract] | |
Goodwill | Note 2 – Goodwill The following table summarizes the changes in the Company’s goodwill, by business segment: Regulated Segment Other Consolidated Balance at December 31, 2016 $ 37,367 $ 4,841 $ 42,208 Goodwill acquired 72 - 72 Reclassification to utility plant acquisition adjustment (50) - (50) Balance at September 30, 2017 $ 37,389 $ 4,841 $ 42,230 The reclassification of goodwill to utility plant acquisition adjustment results from a mechanism approved by the applicable utility commission. The mechanism provides for the transfer over time, and the recovery through customer rates, of goodwill associated with some acquisitions upon achieving specific objectives. Goodwill is not amortized but is tested for impairment annually, or more often, if circumstances indicate a possible impairment may exist, to determine whether it i s more likely than not that the fair value of a reporting unit is less than its carrying amount. When testing goodwill for impairment, the Company may assess qualitative factors, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and entity specific events. Alternatively, the Company may bypass this qualitative assessment for some of its reporting units and perform a quantitative goodwill impairment test by determining the fair value of a reporting unit based on a discounted cash flow analysis. The Company tested the goodwill attributable to each of its reporting units for impairment as of July 31, 201 7 , in conjunction with the timing of its annual strategic business plan, and concluded that the estimated fair value of each reporting unit, which has goodwill recorded, exceeded the reporting unit’s carrying amount, indicating that none of the Company’s goodwill was impaired. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2017 | |
Acquisitions [Abstract] | |
Acquisitions | Note 3 – Acquisitions During the first nine months of 2017, the Company completed four acquisitions of water and wastewater utility systems in various states adding 1,003 customers. The total purchase price of these utility systems consisted of $5,860 in cash, which resulted in $72 of goodwill being recorded. The pro forma effect of the businesses acquired is not material either individually or collectively to the Company’s results of operations. As part of the Company’s growth-through-acquisition strategy, the Company has entered into purchase agreements to acquire the water or wastewater utility system assets of five municipalities for a total combined purchase price in cash of $145,700 . The purchase price for these pending acquisitions is subject to certain adjustments at closing, and is subject to regulatory approvals. Closing for these acquisitions are expected to occur by mid-year 2018, which is subject to the timing of the regulatory approval process. These acquisitions will add approximately 14,900 customers in two of the states that the Company operates in. Pursuant to its strategy to grow through acquisitions, in January 2016, the Company acquired Superior Water Company, Inc., which provides public water service to approximately 3,900 customers in portions of Berks, Chester, and Montgomery counties in Pennsylvania. The total purchase price for the utility system was $16,750 , which consisted of the issuance of 439,943 shares of the Company’s common stock and $3,905 in cash. The purchase price allocation for this acquisition consisted primarily of acquired property, plant and equipment of $25,167 , contributions in aid of construction of $16,565 , and goodwill of $8,622 . Additionally, during 2016, the Company completed eighteen acquisitions of water and wastewater utility systems in various states adding 2,469 customers . The total purchase price of these utility systems consisted of $5,518 in cash, which resulted in $1,756 of goodwill being recorded. The pro forma effect of the businesses acquired is not material either individually or collectively to the Company’s results of operations. |
Assets Held For Sale
Assets Held For Sale | 9 Months Ended |
Sep. 30, 2017 | |
Assets Held For Sale [Abstract] | |
Assets Held For Sale | Note 4 – Assets Held for Sale In the first quarter of 2017, the Company decided to market for sale a water system that serves approximately 265 customers. T his water system is reported as assets held for sale in the Company’s consolidated balance sheet. In the second quarter of 2016, the Company decided to market for sale two business units that are reported within the Company’s market-based subsidiary, Aqua Resources. One business unit installed and tested devices that prevent the contamination of potable water and repaired water and wastewater systems, for which the sale was completed in January 2017. The other business unit repairs and performs maintenance on water and wastewater systems , for which the sale was completed in June 2017 . |
Capitalization
Capitalization | 9 Months Ended |
Sep. 30, 2017 | |
Capitalization [Abstract] | |
Capitalization | Note 5 – Capitalization In October 2017, Aqua Pennsylvania issued $75,000 of first mortgage bonds, of which $35,000 is due in 2054 , $20,000 is due in 2055 , and $20,000 is due in 2057 with interest rates of 4.06% , 4.07% , and 4.09% , respectively. The proceeds from these bonds were used to repay existing indebtedness and for general corporate purposes. In July 2017, Aqua Illinois issued $100,000 of first mortgage bonds consisting of the following: \ Amount Interest Rate Maturity $25,000 3.64% 2032 $6,000 3.89% 2037 $15,000 3.90% 2038 $10,000 4.18% 2047 $22,000 4.22% 2049 $22,000 4.24% 2050 The proceeds from these bonds were used to repay existing indebtedness and for general corporate purposes. In July 2017, Aqua Pennsylvania issued $80,000 of first mortgage bonds, of which $40,000 is due in 2055 and $40,000 is due in 2057 with interest rates of 4.04% and 4.06% , respectively. The proceeds from these bonds were used to repay existing indebtedness and for general corporate purposes. In January 2017, Aqua Pennsylvania issued $50,000 of first mortgage bonds, of which $10,000 is due in 2042 and $40,000 is due in 2044 with interest rates of 3.65% and 3.69% , respectively. The proceeds from these bonds were used to repay existing indebtedness and for general corporate purposes. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | Note 6 – Fair Value of Financial Instruments The Company follows the FASB ’s accounting guidance for fair value measurements and disclosures, which defines fair value and establishes a framework for using fair value to measure assets and liabilities. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: · Level 1: unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access; · Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted market prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in non-active markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or · Level 3: inputs that are unobservable and significant to the fair value measurement. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. There have been no changes in the valuation techniques used to measure fair value, or asset or liability transfers between the levels of the fair value hierarchy for the quarter ended September 30 , 2017 . Financial instruments are recorded at carrying value in the financial statements and approximate fair value as of the dates presented. The fair value of these instruments is disclosed below in accordance with current accounting guidance related to financial instruments. The fair value of loans payable is determined based on its carrying amount and utilizing Level 1 methods and assumptions. As of September 30 , 2017 and December 31, 2016 , the carrying amount of the Company’s loans payable was $20,990 and $ 6,535 , respectively, which equates to their estimated fair value. The Company’s deferred compensation plan liability is determined by the fair value of mutual funds, which are based on quoted market prices from active markets utilizing Level 1 methods and assumptions. As of September 30, 2017 and December 31, 2016, the carrying amount of these secu rities was $18,145 and $17,072 , which equates to their fair value, and is reported in the consolidated balance sheet in deferred charges and other assets . T he fair value of cash and cash equivalents, which is comprised of a money market fund, is determined based on the net asset value per unit utilizing Level 2 methods and assumptions. As of September 30 , 2017 and December 31, 2016 , the carrying amounts of the Company's cash and cash equivalents was $4,139 and $ 3,763 , respectively, which equates to their fair value. The carrying amounts and estimated fair values of the Company’s long-term debt is as follows: September 30, December 31, 2017 2016 Carrying Amount $ 2,059,031 $ 1,910,633 Estimated Fair Value 2,185,051 2,018,933 The fair value of long-term debt has been determined by discounting the future cash flows using current market interest rates for similar financial instruments of the same duration utilizing Level 2 methods and assumptions. The Company’s customers’ advances for construction have a carrying value of $107,715 as of September 30 , 2017 , and $91,843 as of December 31, 2016 . Their relative fair values cannot be accurately estimated because future refund payments depend on several variables, including new customer connections, customer consumption levels, and future rate increases. Portions of these non-interest bearing instruments are payable annually through 2027 and amounts not paid by the respective contract expiration dates become non-refundable. The fair value of these amounts would, however, be less than their carrying value due to the non-interest bearing feature. |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Net Income Per Common Share [Abstract] | |
Net Income Per Common Share | Note 7 – Net Income per Common Share Basic net income per common share is based on the weighted average number of common shares outstanding. Diluted net income per common share is based on the weighted average number of common shares outstanding and potentially dilutive shares. The dilutive effect of employee stock-based compensation is included in the computation of diluted net income per common share. The dilutive effect of stock-based compensation is calculated using the treasury stock method and expected proceeds upon exercise or issuance of the stock-based compensation. The treasury stock method assumes that the proceeds from stock-based compensation are used to purchase the Company’s common stock at the average market price during the period. The following table summarizes the shares, in thousands, used in computing basic and diluted net income per common share: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Average common shares outstanding during the period for basic computation 177,660 177,336 177,583 177,243 Dilutive effect of employee stock-based compensation 464 481 520 538 Average common shares outstanding during the period for diluted computation 178,124 177,817 178,103 177,781 For the three and nine months ended September 30 , 2017 and 2016, all of the Company’s employee stock options were included in the calculations of diluted net income per share as the calculated cost to exercise the stock options was less than the average market price of the Company’s common stock during these periods. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 8 – Stock-based Compensation Under the Company’s 2009 Omnibus Equity Compensation Plan, as amended as of February 27, 2014 (the “2009 Plan”), as approved by the Company’s shareholders to replace the 2004 Equity Compensation Plan (the “2004 Plan”), stock options, stock units, stock awards, stock appreciation rights, dividend equivalents, and other stock-based awards may be granted to employees, non-employee directors, and consultants and advisors. The 2009 Plan authorizes 6,250,000 shares for issuance under the plan. A maximum of 3,125,000 shares under the 2009 Plan may be issued pursuant to stock awards, stock units and other stock-based awards, subject to adjustment as provided in the 2009 Plan. During any calendar year, no individual may be granted (i) stock options and stock appreciation rights under the 2009 Plan for more than 500,000 shares of Company stock in the aggregate or (ii) stock awards, stock units or other stock-based awards under the 2009 Plan for more than 500,000 shares of Company stock in the aggregate, subject to adjustment as provided in the 2009 Plan. Awards to employees and consultants under the 2009 Plan are made by a committee of the Board of Directors of the Company, except that with respect to awards to the Chief Executive Officer, the committee recommends those awards for approval by the non-employee directors of the Board of Directors. In the case of awards to non-employee directors, the Board of Directors makes such awards. At September 30 , 2017, 3,741,526 shares were still available for issuance under the 2009 Plan. No further grants may be made under the 2004 Plan. Performance Share Units – A performance share unit (“PSU”) represents the right to receive a share of the Company’s common stock if specified performance goals are met over the three-year performance period specified in the grant, subject to exceptions through the respective vesting period, generally three years. Each grantee is granted a target award of PSUs, and may earn between 0 % and 200 % of the target amount depending on the Company’s performance against the performance goals. The following table provides compensation costs for stock-based compensation related to PSUs: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock-based compensation within operations and maintenance expenses $ 1,035 $ 1,012 $ 2,875 $ 2,504 Income tax benefit 420 411 1,167 1,013 The following table summarizes the PSU transactions for the nine months ended September 30 , 2017: Number Weighted of Average Share Units Fair Value Nonvested share units at beginning of period 476,896 $ 27.96 Granted 125,202 30.79 Performance criteria adjustment (64,398) 27.75 Forfeited (16,306) 28.26 Share units vested in prior period and issued in current period 32,400 25.31 Share units issued (125,999) 36.37 Nonvested share units at end of period 427,795 $ 26.13 A portion of the fair value of PSUs was estimated at the grant date based on the probability of satisfying the market-based conditions using the Monte Carlo valuation method, which assesses probabilities of various outcomes of market conditions. The other portion of the fair value of the PSUs is based on the fair market value of the Company’s stock at the grant date, regardless of whether the market-based condition is satisfied. The per unit weighted-average fair value at the date of grant for PSUs granted during the nine months ended September 30 , 2017 and 2016 was $30.79 and $ 28.89 , respectively. The fair value of each PSU grant is amortized monthly into compensation expense on a straight-line basis over their respective vesting periods, generally 36 months. The accrual of compensation costs is based on the Company’s estimate of the final expected value of the award, and is adjusted as required for the portion based on the performance-based condition. The Company assumes that forfeitures will be minimal, and recognizes forfeitures as they occur, which results in a reduction in compensation expense. As the payout of the PSUs includes dividend equivalents, no separate dividend yield assumption is required in calculating the fair value of the PSUs. The recording of compensation expense for PSUs has no impact on net cash flows. Restricted Stock Units – A restricted stock unit (“RSU”) represents the right to receive a share of the Company’s common stock. RSUs are eligible to be earned at the end of a specified restricted period, generally three years, beginning on the date of grant. The Company assumes that forfeitures will be minimal, and recognizes forfeitures as they occur, which results in a reduction in compensation expense. As the payout of the RSUs includes dividend equivalents, no separate dividend yield assumption is required in calculating the fair value of the RSUs. The following table provides the compensation cost and income tax benefit for stock-based compensation related to RSUs: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock-based compensation within operations and maintenance expenses $ 311 $ 299 $ 915 $ 763 Income tax benefit 129 124 378 315 The following table summarizes the RSU transactions for the nine months ended September 30 , 2017: Number Weighted of Average Stock Units Fair Value Nonvested stock units at beginning of period 109,273 $ 28.48 Granted 41,293 30.37 Stock units vested and issued (26,914) 26.18 Forfeited (2,287) 30.52 Nonvested stock units at end of period 121,365 $ 29.60 The per unit weighted-average fair value at the date of grant for RSUs granted during the nine months ended September 30 , 2017 and 2016 was $ 30.37 and $ 32.09 , respectively. Stock Options – A stock option represents the option to purchase a number of shares of common stock of the Company as specified in the stock option grant agreement at the exercise price per share as determined by the closing market price of our common stock on the grant date. Stock options are exercisable in installments of 33% annually , starting one year from the grant date and expire 10 years from the grant date. The fair value of each stock option is amortized into compensation expense using the graded-vesting method, which results in the recognition of compensation costs over the requisite service period for each separately vesting tranche of the stock options as though the stock options were, in substance, multiple stock option grants. The following table provides the compensation cost and income tax benefit for stock-based compensation related to stock options: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock-based compensation within operations and maintenance expenses $ 73 $ - $ 177 $ - Income tax benefit 43 15 167 249 The fair value of options was estimated at the grant date using the Black-Scholes option-pricing model. The following assumptions were used in the application of this valuation model: 2017 Expected term (years) 5.45 Risk-free interest rate 2.01% Expected volatility 17.7% Dividend yield 2.51% Grant date fair value per option $ 4.07 Historical information was the principal basis for the selection of the expected term and dividend yield. The expected volatility is based on a weighted-average combination of historical and implied volatilities over a time period that approximates the expected term of the option. The risk-free interest rate was selected based upon the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. For the nine months ended September 30 , 2016, there were no compensation costs for stock-based compensation related to stock options, as the previous stock option grant that occurred in 2010 became fully amortized in 2013. Additionally, there were no stock options granted during the nine months ended September 30 , 2016. The following table summarizes stock option transactions for the nine months ended September 30 , 2017: Weighted Weighted Average Average Aggregate Exercise Remaining Intrinsic Shares Price Life (years) Value Outstanding at beginning of period 427,335 $ 15.55 Granted 120,127 30.47 Forfeited (2,439) 30.47 Expired / Cancelled (2,812) 14.26 Exercised (157,621) 16.51 Outstanding at end of period 384,590 $ 19.73 3.9 $ 5,175 Exercisable at end of period 266,902 $ 15.00 1.4 $ 4,855 Stock Awards – Stock awards represent the issuance of the Company’s common stock, without restriction. The issuance of stock awards results in compensation expense which is equal to the fair market value of the stock on the grant date, and is expensed immediately upon grant. The following table provides the compensation cost and income tax benefit for stock-based compensation related to stock awards: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock-based compensation within operations and maintenance expenses $ 150 $ 131 $ 412 $ 375 Income tax benefit 62 54 171 155 The following table summarizes stock award transactions for the nine months ended September 30 , 2017: Number Weighted of Average Stock Awards Fair Value Nonvested stock awards at beginning of period - $ - Granted 12,529 32.92 Vested (12,529) 32.92 Nonvested stock awards at end of period - $ - The per unit weighted-average fair value at the date of grant for stock awards granted during the nine months ended September 30 , 2017 and 2016 was $32.92 and $32.57 , respectively. |
Pension Plans And Other Postret
Pension Plans And Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2017 | |
Pension Plans And Other Postretirement Benefits [Abstract] | |
Pension Plans And Other Postretirement Benefits | Note 9 – Pension Plans and Other Postretirement Benefits The Company maintains a qualified defined benefit pension plan (the “Pension Plan”), a nonqualified pension plan and other postretirement benefit plans for certain of its employees. The net periodic benefit cost is based on estimated values and an extensive use of assumptions about the discount rate, expected return on plan assets, the rate of future compensation increases received by the Company’s employees, mortality, turnover, and medical costs. The following tables provide the components of net periodic benefit cost: Pension Benefits Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Service cost $ 794 $ 784 $ 2,382 $ 2,394 Interest cost 3,108 3,251 9,324 9,787 Expected return on plan assets (4,270) (4,215) (12,810) (12,696) Amortization of prior service cost 145 145 435 435 Amortization of actuarial loss 2,001 1,797 6,003 5,354 Settlement charge - - - 3,028 Special termination benefit charge - - - 302 Net periodic benefit cost $ 1,778 $ 1,762 $ 5,334 $ 8,604 Other Postretirement Benefits Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Service cost $ 255 $ 253 $ 765 $ 761 Interest cost 737 726 2,211 2,202 Expected return on plan assets (647) (645) (1,941) (2,001) Amortization of prior service cost (127) (137) (381) (411) Amortization of actuarial loss 291 220 873 707 Net periodic benefit cost $ 509 $ 417 $ 1,527 $ 1,258 Effective July 1, 2015, the Company added a permanent lump sum option to the form of benefit payments offered to participants of the qualified defined benefit pension plan and non-qualified retirement plans upon retirement or termination. During the first quarter of 2016, the lump sum payments paid to participants who elected this option for payments from the non-qualified retirement plans resulted in a settlement charge. The Company made cash contributions of $15,421 to its Pension Plan during the first six months of 2017, which completed the Company’s 2017 cash contributions . |
Water And Wastewater Rates
Water And Wastewater Rates | 9 Months Ended |
Sep. 30, 2017 | |
Water And Wastewater Rates [Abstract] | |
Water And Wastewater Rates | Note 10 – Water and Wastewater Rates During the first nine months of 2017, the Company’s operating divisions in Indiana and Ohio were granted base rate increases designed to increase total operating revenues on an annual basis by $7,403 . Further, during the first nine months of 2017, the Company’s operating divisions in Illinois , New Jersey, and North Carolina received approval to bill infrastructure rehabilitation surcharges designed to increase total operating revenues on an annual basis by $3,659 . |
Taxes Other Than Income Taxes
Taxes Other Than Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Taxes Other Than Income Taxes [Abstract] | |
Taxes Other Than Income Taxes | Note 11 – Taxes Other than Income Taxes The following table provides the components of taxes other than income taxes: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Property $ 6,955 $ 7,007 $ 20,608 $ 20,119 Gross receipts, excise and franchise 3,969 3,409 10,507 9,468 Payroll 2,066 2,140 7,322 7,775 Regulatory assessments 674 639 1,933 1,991 Pumping fees 1,526 1,442 3,820 3,501 Other 44 75 200 240 Total taxes other than income $ 15,234 $ 14,712 $ 44,390 $ 43,094 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Information [Abstract] | |
Segment Information | Note 12 – Segment Information The Company has ten operating segments and one reportable segment. The Regulated segment, the Company’s single reportable segment, is comprised of eight operating segments representing its water and wastewater regulated utility companies which are organized by the states where the Company provide s water and wastewater services. These operating segments are aggregated into one reportable segment because each of these operating segments has the following similarities: economic characteristics, nature of services, production processes, customers, water distribution or wastewater collection methods, and the nature of the regulatory environment. Two operating segments are included within the Other category below. These segments are not quantitatively significant and are comprised of Aqua Resources and Aqua Infrastructure. Aqua Resources provides water and wastewater service through operating and maintenance contracts with municipal authorities and other parties close to its utility companies’ service territories; and offers, through a third party, water and sewer line repair service and protection solutions to households. Aqua Infrastructure provides non-utility raw water supply services for firms in the natural gas drilling industry. In addition to these segments, Other is comprised of other business activities not included in the reportable segment, including corporate costs that have not been allocated to the Regulated segment and intersegment eliminations. Corporate costs include general and administrative expenses, and interest expense. Additionally, contained within total assets for the Other category, in the table below, is a regulatory asset for postretirement benefits for the underfunded status of the Company’s pension and other postretirement benefit plans and an intercompany receivable. The following table presents information about the Company’s reportable segment: Three Months Ended Three Months Ended September 30, 2017 September 30, 2016 Regulated Other Consolidated Regulated Other Consolidated Operating revenues $ 214,032 $ 976 $ 215,008 $ 222,231 $ 4,362 $ 226,593 Operations and maintenance expense 70,772 (2,790) 67,982 73,013 6,799 79,812 Depreciation 34,533 (269) 34,264 34,025 (144) 33,881 Operating income (loss) 94,142 3,344 97,486 100,563 (2,764) 97,799 Interest expense, net 20,753 1,658 22,411 19,167 1,001 20,168 Allowance for funds used during construction 3,914 - 3,914 2,267 - 2,267 Income tax expense (benefit) 3,138 262 3,400 9,027 (616) 8,411 Net income (loss) 74,208 2,017 76,225 74,681 (1,511) 73,170 Nine Months Ended Nine Months Ended September 30, 2017 September 30, 2016 Regulated Other Consolidated Regulated Other Consolidated Operating revenues $ 602,341 $ 3,872 $ 606,213 $ 606,323 $ 16,753 $ 623,076 Operations and maintenance expense 210,842 (2,879) 207,963 210,014 17,333 227,347 Depreciation 102,340 (832) 101,508 98,445 (800) 97,645 Operating income (loss) 246,361 5,633 251,994 255,431 (1,808) 253,623 Interest expense, net 60,277 4,847 65,124 57,061 3,075 60,136 Allowance for funds used during construction 10,570 - 10,570 6,446 - 6,446 Income tax expense (benefit) 12,243 (344) 11,899 18,610 (1,677) 16,933 Net income (loss) 184,733 1,532 186,265 186,579 (2,046) 184,533 Capital expenditures 337,321 410 337,731 269,046 973 270,019 September 30, December 31, 2017 2016 Total assets: Regulated $ 6,355,896 $ 5,953,702 Other 189,485 205,289 Consolidated $ 6,545,381 $ 6,158,991 |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note 13 – Commitments and Contingencies The Company is routinely involved in various disputes, claims, lawsuits and other regulatory and legal matters, including both asserted and unasserted legal claims, in the ordinary course of business. The status of each such matter, referred to herein as a loss contingency, is reviewed and assessed in accordance with applicable accounting rules regarding the nature of the matter, the likelihood that a loss will be incurred, and the amounts involved. As of September 30 , 2017, the aggregate amount of $16,898 is accrued for loss contingencies and is reported in the Company’s consolidated balance sheet as other accrued liabilities and other liabilities. These accruals represent management’s best estimate of probable loss (as defined in the accounting guidance) for loss contingencies or the low end of a range of losses if no single probable loss can be estimated. For some loss contingencies, the Company is unable to estimate the amount of the probable loss or range of probable losses. While the final outcome of these loss contingencies cannot be predicted with certainty, and unfavorable outcomes could negatively impact the Company, at this time in the opinion of management, the final resolution of these matters are not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. Further, the Company has insurance coverage for certain of these loss contingencies, and as of September 30 , 2017, estimates that approximately $5,415 of the amount accrued for these matters are probable of recovery through insurance, which amount is also reported in the Company’s consolidated balance sheet as deferred charges and other assets. In addition to the aforementioned loss contingencies, the Company self-insures its employee medical benefit program, and maintains stop-loss coverage to limit the exposure arising from these claims. The Company’s reserve for these claims totaled $1,451 at September 30 , 2017 and represents a reserve for unpaid claim costs, including an estimate for the cost of incurred but not reported claims. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | Note 14 – Income Taxes During the nine months ended September 30 , 2017, the Company’s Federal net operating loss (“NOL”) carryforward decreased by $31,935 . In addition, during the nine months ended September 30 , 2017, the Company’s state NOL carryforward increased by $ 23,173 . As of September 30 , 2017, the balance of the Company’s Federal NOL was $81,208 . The Company believes its Federal NOL carryforward is more likely than not to be recovered and requires no valuation allowance. As of September 30 , 2017, the balance of the Company’s gross state NOL was $600,358 , a portion of which is offset by a valuation allowance because the Company does not believe the state NOLs are more likely than not to be realized. The Company’s Federal and state NOL carryforwards begin to expire in 2032 and 2023 , respectively. The Company’s Federal and state NOL carryforwards are reduced by an unrecognized tax position, on a gross basis, of $ 64,738 and $85,523 , respectively. The amounts of the Company’s Federal and state NOL carryforwards prior to being reduced by the unrecognized tax positions were $ 145,947 and $685,880 respectively. The Company records its unrecognized tax benefit as a reduction to its deferred income tax liability. In accordance with a 2012 settlement agreement with the Pennsylvania Public Utility Commission, Aqua Pennsylvania expenses, for tax purposes, qualifying utility asset improvement costs, which results in a substantial reduction in income tax expense and greater net income and cash flows. The Company’s effective income tax rate for the third quarter of 2017 and 2016 was 4.3% and 10.3% , respectively , and for the first nine months of 2017 and 2016 was 6.0% and 8.4% , respectively . As of September 30, 2017 regulatory assets increased by $96,140 , as compared to the beginning of the year, primarily due to the effect of additional tax deductions for certain qualifying infrastructure improvements, which results in differences between costs capitalized for book and deducted as an expense for tax purposes. As of September 30 , 2017, the total gross unrecognized tax benefit was $28,938 , of which $23,700 , if recognized, would affect the Company’s effective tax rate as a result of the regulatory treatment afforded for qualifying infrastructure improvements in Pennsylvania. At December 31, 2016, the Company had unrecognized tax benefits of $28,099 . Accounting rules for uncertain tax positions specify that tax positions for which the timing of resolution is uncertain should be classified as long-term liabilities. Judgment is required in evaluating the Company’s uncertain tax positions and determining the provision for income taxes. Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. Although the timing of income tax audit resolutions and negotiations with taxing authorities is highly uncertain, the Company does not anticipate a significant change to the total amount of unrecognized income tax benefits within the next 12 months. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 15 – Recent Accounting Pronouncements In March 2017, the FASB issued updated accounting guidance on the presentation of net periodic pension and postretirement benefit cost (net benefit cost). Historically, net benefit cost is reported as an employee cost within operating income, net of amounts capitalized. The guidance requires the bifurcation of net benefit cost. The service cost component will be presented with other employee compensation costs in operating income and the other components of net benefit cost will be reported separately outside of operating income, and will not be eligible for capitalization. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period , and is to be applied retrospectively for the presentation of the service cost component and the other components of net benefit cost, and on a prospective basis for the capitalization of only the service cost component of net benefit cost . The Company is evaluating the requirements of the updated guidance to determine the impact of adoption, and does not believe it will have a material impact on its results of operations or financial position . In January 2017, the FASB issued updated accounting guidance that eliminates step 2 of the current goodwill impairment test, which requires a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment loss will instead be measured at the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance will be effective for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period, with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. The Company has elected to early adopt the provisions of the updated guidance , for its annual impairment valuation performed in the third quarter of 2017, and the provisions of the updated guidance did not have an impact on its results of operations or financial position. In August 2016, the FASB issued updated accounting guidance on the classification of certain cash receipts and cash payments in the statement of cash flows, which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is permitted. The Company has elected to early adopt the provisions of the updated guidance, which resulted in the reclassification of $375 debt extinguishment costs, for the nine months ended September 30, 2016, from cash flows from operating to financing activities to conform to the new classification . In March 2016, the FASB issued updated accounting guidance on simplifying the accounting for share-based payments, which includes several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The updated guidance was effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption available. On January 1, 2017, the Company adopted the updated guidance, prospectively, and recognized a previously unrecognized windfall tax benefit for stock-based compensation of $982 associated with the Company’s 2012 Federal net operating loss, which was recorded as an adjustment to deferred income taxes and retained earnings (refer to the presentation of “cumulative effect of change in accounting principle - windfall tax benefit” on the Company’s Consolidated Statement of Equity). Additionally, income tax benefits in excess of compensation costs or tax deficiencies for share-based compensation are now recorded to the Company’s income tax provision, instead of historically to stockholder’s equity, which impacts its effective tax rate. Lastly, all tax-related cash flows resulting from share-based payments are reported prospectively as operating activities on the statement of cash flows, a change from the historical requirement to present tax benefits as an inflow from financing activities and an outflow from operating activities. In February 2016, the FASB issued updated accounting guidance on accounting for leases, which requires lessees to establish a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. For income statement purposes, leases will be classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. The updated accounting guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption available. The Company is evaluating the requirements of the updated guidance to determine the impact of adoption. In January 2016, the FASB issued updated accounting guidance on the recognition and measurement of financial assets and financial liabilities, which amends certain aspects of recognition, measurement, presentation, and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. The updated guidance is effective for interim and annual periods beginning after December 31, 2017. The Company does not expect the provisions of the updated guidance to have a material impact on its results of operations or financial position. In May 2014, the FASB issued updated accounting guidance on recognizing revenue from contracts with customers, which outlines a single comprehensive model that an entity will apply to determine the measurement of revenue and timing of recognition. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The updated guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Additionally, the accounting for contributions in aid of construction may be impacted by the updated accounting guidance if the contributions are determined to be in scope. In July 2015, the FASB approved a one year deferral to the original effective date of this guidance. The updated guidance is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the updated guidance in each prior reporting period, or (ii) a modified retrospective approach with the cumulative effect of initially adopting the updated guidance recognized through retained earnings at the date of adoption. In 2016, the Company performed an evaluation of the requirements of the updated guidance and based on current interpretations of the updated guidance believes that the impact of adoption will not result in a material change in the Company’s measurement of revenue and timing of recognition if contributions in aid of construction are determined to not be in scope. In 2017, the American Institute of Certified Public Accountants (AICPA) power and utility entities revenue recognition task force has determined that contributions in aid of construction are not in the scope of the new standard, and submitted its recommendation to the AICPA’s revenue recognition working group for approval . The Company plan s to implement the updated guidance using the modified retrospective approach on January 1, 2018 . |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill [Abstract] | |
Schedule Of Goodwill | Regulated Segment Other Consolidated Balance at December 31, 2016 $ 37,367 $ 4,841 $ 42,208 Goodwill acquired 72 - 72 Reclassification to utility plant acquisition adjustment (50) - (50) Balance at September 30, 2017 $ 37,389 $ 4,841 $ 42,230 |
Capitalization (Tables)
Capitalization (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Capitalization [Abstract] | |
Schedule Of Capitalization | \ Amount Interest Rate Maturity $25,000 3.64% 2032 $6,000 3.89% 2037 $15,000 3.90% 2038 $10,000 4.18% 2047 $22,000 4.22% 2049 $22,000 4.24% 2050 |
Fair Value Of Financial Instr30
Fair Value Of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Of Financial Instruments [Abstract] | |
Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt | September 30, December 31, 2017 2016 Carrying Amount $ 2,059,031 $ 1,910,633 Estimated Fair Value 2,185,051 2,018,933 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Net Income Per Common Share [Abstract] | |
Schedule Of Earnings Per Share | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Average common shares outstanding during the period for basic computation 177,660 177,336 177,583 177,243 Dilutive effect of employee stock-based compensation 464 481 520 538 Average common shares outstanding during the period for diluted computation 178,124 177,817 178,103 177,781 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of PSU Transactions | Number Weighted of Average Share Units Fair Value Nonvested share units at beginning of period 476,896 $ 27.96 Granted 125,202 30.79 Performance criteria adjustment (64,398) 27.75 Forfeited (16,306) 28.26 Share units vested in prior period and issued in current period 32,400 25.31 Share units issued (125,999) 36.37 Nonvested share units at end of period 427,795 $ 26.13 |
Summary Of RSU Transactions | Number Weighted of Average Stock Units Fair Value Nonvested stock units at beginning of period 109,273 $ 28.48 Granted 41,293 30.37 Stock units vested and issued (26,914) 26.18 Forfeited (2,287) 30.52 Nonvested stock units at end of period 121,365 $ 29.60 |
Assumptions Used In The Pricing Model | 2017 Expected term (years) 5.45 Risk-free interest rate 2.01% Expected volatility 17.7% Dividend yield 2.51% Grant date fair value per option $ 4.07 |
Summary Of Stock Option Transactions | Weighted Weighted Average Average Aggregate Exercise Remaining Intrinsic Shares Price Life (years) Value Outstanding at beginning of period 427,335 $ 15.55 Granted 120,127 30.47 Forfeited (2,439) 30.47 Expired / Cancelled (2,812) 14.26 Exercised (157,621) 16.51 Outstanding at end of period 384,590 $ 19.73 3.9 $ 5,175 Exercisable at end of period 266,902 $ 15.00 1.4 $ 4,855 |
Performance Share Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Compensation Costs | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock-based compensation within operations and maintenance expenses $ 1,035 $ 1,012 $ 2,875 $ 2,504 Income tax benefit 420 411 1,167 1,013 |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Compensation Costs | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock-based compensation within operations and maintenance expenses $ 311 $ 299 $ 915 $ 763 Income tax benefit 129 124 378 315 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Compensation Costs | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock-based compensation within operations and maintenance expenses $ 73 $ - $ 177 $ - Income tax benefit 43 15 167 249 |
Stock Compensation Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Compensation Costs | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock-based compensation within operations and maintenance expenses $ 150 $ 131 $ 412 $ 375 Income tax benefit 62 54 171 155 |
Summary Of Nonvested Share Activity | Number Weighted of Average Stock Awards Fair Value Nonvested stock awards at beginning of period - $ - Granted 12,529 32.92 Vested (12,529) 32.92 Nonvested stock awards at end of period - $ - |
Pension Plans And Other Postr33
Pension Plans And Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Pension Plans And Other Postretirement Benefits [Abstract] | |
Components Of Net Periodic Benefit Costs | Pension Benefits Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Service cost $ 794 $ 784 $ 2,382 $ 2,394 Interest cost 3,108 3,251 9,324 9,787 Expected return on plan assets (4,270) (4,215) (12,810) (12,696) Amortization of prior service cost 145 145 435 435 Amortization of actuarial loss 2,001 1,797 6,003 5,354 Settlement charge - - - 3,028 Special termination benefit charge - - - 302 Net periodic benefit cost $ 1,778 $ 1,762 $ 5,334 $ 8,604 Other Postretirement Benefits Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Service cost $ 255 $ 253 $ 765 $ 761 Interest cost 737 726 2,211 2,202 Expected return on plan assets (647) (645) (1,941) (2,001) Amortization of prior service cost (127) (137) (381) (411) Amortization of actuarial loss 291 220 873 707 Net periodic benefit cost $ 509 $ 417 $ 1,527 $ 1,258 |
Taxes Other Than Income Taxes (
Taxes Other Than Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Taxes Other Than Income Taxes [Abstract] | |
Components Of Taxes Other Than Income Taxes | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Property $ 6,955 $ 7,007 $ 20,608 $ 20,119 Gross receipts, excise and franchise 3,969 3,409 10,507 9,468 Payroll 2,066 2,140 7,322 7,775 Regulatory assessments 674 639 1,933 1,991 Pumping fees 1,526 1,442 3,820 3,501 Other 44 75 200 240 Total taxes other than income $ 15,234 $ 14,712 $ 44,390 $ 43,094 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Information [Abstract] | |
Company's Segment Information, Continuing Operations | Three Months Ended Three Months Ended September 30, 2017 September 30, 2016 Regulated Other Consolidated Regulated Other Consolidated Operating revenues $ 214,032 $ 976 $ 215,008 $ 222,231 $ 4,362 $ 226,593 Operations and maintenance expense 70,772 (2,790) 67,982 73,013 6,799 79,812 Depreciation 34,533 (269) 34,264 34,025 (144) 33,881 Operating income (loss) 94,142 3,344 97,486 100,563 (2,764) 97,799 Interest expense, net 20,753 1,658 22,411 19,167 1,001 20,168 Allowance for funds used during construction 3,914 - 3,914 2,267 - 2,267 Income tax expense (benefit) 3,138 262 3,400 9,027 (616) 8,411 Net income (loss) 74,208 2,017 76,225 74,681 (1,511) 73,170 Nine Months Ended Nine Months Ended September 30, 2017 September 30, 2016 Regulated Other Consolidated Regulated Other Consolidated Operating revenues $ 602,341 $ 3,872 $ 606,213 $ 606,323 $ 16,753 $ 623,076 Operations and maintenance expense 210,842 (2,879) 207,963 210,014 17,333 227,347 Depreciation 102,340 (832) 101,508 98,445 (800) 97,645 Operating income (loss) 246,361 5,633 251,994 255,431 (1,808) 253,623 Interest expense, net 60,277 4,847 65,124 57,061 3,075 60,136 Allowance for funds used during construction 10,570 - 10,570 6,446 - 6,446 Income tax expense (benefit) 12,243 (344) 11,899 18,610 (1,677) 16,933 Net income (loss) 184,733 1,532 186,265 186,579 (2,046) 184,533 Capital expenditures 337,321 410 337,731 269,046 973 270,019 |
Company's Segment Information, Assets | September 30, December 31, 2017 2016 Total assets: Regulated $ 6,355,896 $ 5,953,702 Other 189,485 205,289 Consolidated $ 6,545,381 $ 6,158,991 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Line Items] | |
Balance | $ 42,208 |
Goodwill acquired | 72 |
Reclassification to utility plant acquisition adjustment | (50) |
Balance | 42,230 |
Regulated [Member] | |
Goodwill [Line Items] | |
Balance | 37,367 |
Goodwill acquired | 72 |
Reclassification to utility plant acquisition adjustment | (50) |
Balance | 37,389 |
Other [Member] | |
Goodwill [Line Items] | |
Balance | 4,841 |
Goodwill acquired | |
Reclassification to utility plant acquisition adjustment | |
Balance | $ 4,841 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Jan. 31, 2016USD ($)customershares | Jun. 30, 2018USD ($) | Sep. 30, 2017USD ($)customerstateitem | Dec. 31, 2016USD ($)customeritem | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 42,230 | $ 42,208 | ||
Superior Water Company, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of customers | customer | 3,900 | |||
Total purchase price | $ 16,750 | |||
Shares issued for acquisition | shares | 439,943 | |||
Cash Paid | $ 3,905 | |||
Acquired property, plant and equipment | 25,167 | |||
Contributions in aid of construction | 16,565 | |||
Goodwill | $ 8,622 | |||
Water And Wastewater Utility Systems In Various States [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of acquisitions | item | 4 | 18 | ||
Number of customers | customer | 1,003 | 2,469 | ||
Total purchase price | $ 5,860 | $ 5,518 | ||
Goodwill | $ 72 | $ 1,756 | ||
Municipal Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of acquisitions | item | 5 | |||
Number of customers | customer | 14,900 | |||
Number of states company operates in | state | 2 | |||
Scenario, Forecast [Member] | Municipal Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Total purchase price | $ 145,700 |
Assets Held For Sale (Details)
Assets Held For Sale (Details) - Disposal Group, Not Discontinued Operations [Member] | 3 Months Ended | |
Mar. 31, 2017customer | Jun. 30, 2016item | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of customers | customer | 265 | |
Sale of business units | item | 2 |
Capitalization (Narrative) (Det
Capitalization (Narrative) (Details) - Aqua Pennsylvania, Inc [Member] - USD ($) | 1 Months Ended | ||
Oct. 31, 2017 | Jul. 31, 2017 | Jan. 31, 2017 | |
First Mortgage Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Face Amount | $ 50,000,000 | ||
First Mortgage Bonds Due In 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Face Amount | $ 10,000,000 | ||
Maturity Year | 2,042 | ||
Interest Rate | 3.65% | ||
First Mortgage Bonds Due In 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Face Amount | $ 40,000,000 | ||
Maturity Year | 2,044 | ||
Interest Rate | 3.69% | ||
First Mortgage Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Face Amount | $ 80,000,000 | ||
First Mortgage Bonds Due In 2055 [Member] | |||
Debt Instrument [Line Items] | |||
Face Amount | $ 40,000,000 | ||
Maturity Year | 2,055 | ||
Interest Rate | 4.04% | ||
First Mortgage Bonds Due In 2057 [Member] | |||
Debt Instrument [Line Items] | |||
Face Amount | $ 40,000,000 | ||
Maturity Year | 2,057 | ||
Interest Rate | 4.06% | ||
First Mortgage Bonds [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Face Amount | $ 75,000,000 | ||
First Mortgage Bonds Due In 2054 [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Face Amount | $ 35,000,000 | ||
Maturity Year | 2,054 | ||
Interest Rate | 4.06% | ||
First Mortgage Bonds Due In 2055 [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Face Amount | $ 20,000,000 | ||
Maturity Year | 2,055 | ||
Interest Rate | 4.07% | ||
First Mortgage Bonds Due In 2057 [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Face Amount | $ 20,000,000 | ||
Maturity Year | 2,057 | ||
Interest Rate | 4.09% |
Capitalization (Schedule Of Cap
Capitalization (Schedule Of Capitalization) (Details) - Aqua Illinois [Member] $ in Thousands | 1 Months Ended |
Jul. 31, 2017USD ($) | |
Capitalization [Line Items] | |
Amount | $ 100,000 |
First Mortgage Bond Maturing 2032 [Member] | |
Capitalization [Line Items] | |
Amount | $ 25,000 |
Interest Rate | 3.64% |
Maturity | 2,032 |
First Mortgage Bond Maturing 2037 [Member] | |
Capitalization [Line Items] | |
Amount | $ 6,000 |
Interest Rate | 3.89% |
Maturity | 2,037 |
First Mortgage Bond Maturing 2038 [Member] | |
Capitalization [Line Items] | |
Amount | $ 15,000 |
Interest Rate | 3.90% |
Maturity | 2,038 |
First Mortgage Bond Maturing 2047 [Member] | |
Capitalization [Line Items] | |
Amount | $ 10,000 |
Interest Rate | 4.18% |
Maturity | 2,047 |
First Mortgage Bond Maturing 2049 [Member] | |
Capitalization [Line Items] | |
Amount | $ 22,000 |
Interest Rate | 4.22% |
Maturity | 2,049 |
First Mortgage Bond Maturing 2050 [Member] | |
Capitalization [Line Items] | |
Amount | $ 22,000 |
Interest Rate | 4.24% |
Maturity | 2,050 |
Fair Value Of Financial Instr41
Fair Value Of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 4,139 | $ 3,763 | $ 3,712 | $ 3,229 |
Customers' advances for construction | 107,715 | 91,843 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans payable | 20,990 | 6,535 | ||
Mutual funds | 18,145 | 17,072 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 4,139 | 3,763 | ||
Customers' advances for construction | $ 107,715 | $ 91,843 |
Fair Value Of Financial Instr42
Fair Value Of Financial Instruments (Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 2,059,031 | $ 1,910,633 |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 2,185,051 | $ 2,018,933 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net Income Per Common Share [Abstract] | ||||
Average common shares outstanding during the period for basic computation | 177,660 | 177,336 | 177,583 | 177,243 |
Dilutive effect of employee stock-based compensation | 464 | 481 | 520 | 538 |
Average common shares outstanding during the period for diluted computation | 178,124 | 177,817 | 178,103 | 177,781 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | 165,442 | |
2004 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 0 | |
2009 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 6,250,000 | |
Maximum number of shares may be issued pursuant to stock awards, stock units and other stock-based awards | 3,125,000 | |
Maximum number of shares subject to grants to any one individual in any one year | 500,000 | |
Underlying stock option and restricted stock awards available for grant | 3,741,526 | |
Performance Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period, in years | 3 years | |
Weighted average fair value of stock awards granted | $ 30.79 | $ 28.89 |
Amortization period of fair value of shares, in months | 36 months | |
Granted | 125,202 | |
Performance Share Units [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target award amount the grantee may earn | 0.00% | |
Performance Share Units [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target award amount the grantee may earn | 200.00% | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted period | 3 years | |
Weighted average fair value of stock awards granted | $ 30.37 | $ 32.09 |
Granted | 41,293 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period, start, in years | 1 year | |
Vesting period, in years | 10 years | |
Granted | 0 | |
Stock Options [Member] | Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.00% | |
Stock Options [Member] | Share-based Compensation Award, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.00% | |
Stock Options [Member] | Share-based Compensation Award, Tranche Three [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.00% | |
Stock Compensation Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value of stock awards granted | $ 32.92 | $ 32.57 |
Granted | 12,529 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of PSU Transactions) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, Number of Share Units | 165,442 | |
Performance Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested share units at beginning of period, Number of Share Units | 476,896 | |
Granted, Number of Share Units | 125,202 | |
Performance criteria adjustment, Number of Share Units | (64,398) | |
Forfeited, Number of Share Units | (16,306) | |
Share units vested in prior period and issued in current period, Number of Share Units | 32,400 | |
Share units issued, Number of Share Units | (125,999) | |
Nonvested share units at end of period, Number of Share Units | 427,795 | |
Nonvested share units at beginning of period, Weighted Average Fair Value | $ 27.96 | |
Granted, Weighted Average Fair Value | 30.79 | $ 28.89 |
Performance criteria adjustment, Weighted Average Fair Value | 27.75 | |
Forfeited, Weighted Average Fair Value | 28.26 | |
Stock units vested and issued, Weighted Average Fair Value | 25.31 | |
Share units issued, Weighted Average Fair Value | 36.37 | |
Nonvested share units at end of period, Weighted Average Fair Value | $ 26.13 |
Stock-Based Compensation (Sum46
Stock-Based Compensation (Summary Of RSU Transactions) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, Number of Share Units | 165,442 | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested share units at beginning of period, Number of Share Units | 109,273 | |
Granted, Number of Share Units | 41,293 | |
Stock units vested and issued, Number of Share Units | (26,914) | |
Forfeited, Number of Share Units | (2,287) | |
Nonvested share units at end of period, Number of Share Units | 121,365 | |
Nonvested share units at beginning of period, Weighted Average Fair Value | $ 28.48 | |
Granted, Weighted Average Fair Value | 30.37 | $ 32.09 |
Stock units vested and issued, Weighted Average Fair Value | 26.18 | |
Forfeited, Weighted Average Fair Value | 30.52 | |
Nonvested share units at end of period, Weighted Average Fair Value | $ 29.60 |
Stock-Based Compensation (Sum47
Stock-Based Compensation (Summary Of Compensation Costs) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation within operations and maintenance expense | $ 73,000 | $ 177,000 | $ 0 | |
Income tax benefit | 43,000 | $ 15,000 | 167,000 | 249,000 |
Performance Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation within operations and maintenance expense | 1,035,000 | 1,012,000 | 2,875,000 | 2,504,000 |
Income tax benefit | 420,000 | 411,000 | 1,167,000 | 1,013,000 |
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation within operations and maintenance expense | 311,000 | 299,000 | 915,000 | 763,000 |
Income tax benefit | 129,000 | 124,000 | 378,000 | 315,000 |
Stock Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation within operations and maintenance expense | 150,000 | 131,000 | 412,000 | 375,000 |
Income tax benefit | $ 62,000 | $ 54,000 | $ 171,000 | $ 155,000 |
Stock-Based Compensation (Assum
Stock-Based Compensation (Assumptions Used In The Pricing Model) (Details) - Stock Options [Member] | 9 Months Ended |
Sep. 30, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (years) | 5 years 5 months 12 days |
Risk-free interest rate | 2.01% |
Expected volatility | 17.70% |
Dividend yield | 2.51% |
Grant date fair value per option | $ 4.07 |
Stock-Based Compensation (Sum49
Stock-Based Compensation (Summary Of Stock Option Transactions) (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercised, Shares | (157,621) |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at beginning of period, Shares | 427,335 |
Granted, Shares | 120,127 |
Forfeited, Shares | (2,439) |
Expired / Canelled, Shares | (2,812) |
Exercised, Shares | (157,621) |
Outstanding at end of period, Shares | 384,590 |
Exercisable at end of period, Shares | 266,902 |
Outstanding at beginning of period, Weighted Average Exercise Price | $ / shares | $ 15.55 |
Granted, Weighted Average Exercise Price | $ / shares | 30.47 |
Forfeited, Weighted Average Exercise Price | $ / shares | 30.47 |
Expired / Canelled, Weighted Average Exercise Price | $ / shares | 14.26 |
Exercised, Weighted Average Exercise Price | $ / shares | 16.51 |
Outstanding at end of period, Weighted Average Exercise Price | $ / shares | 19.73 |
Exercisable at end of period, Weighted Average Exercise Price | $ / shares | $ 15 |
Outstanding at end of period, Weighted Average Remaining Life (years) | 3 years 10 months 24 days |
Exercisable at end of period, Weighted Average Remaining Life (years) | 1 year 4 months 24 days |
Outstanding at end of period, Aggregate Intrinsic Value | $ | $ 5,175 |
Exercisable at end of period, Aggregate Intrinsic Value | $ | $ 4,855 |
Stock-Based Compensation (Sum50
Stock-Based Compensation (Summary Of Nonvested Share Activity) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, Number of Share Units | 165,442 | |
Stock Compensation Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested share units at beginning of period, Number of Share Units | ||
Granted, Number of Share Units | 12,529 | |
Stock units vested and issued, Number of Share Units | (12,529) | |
Nonvested share units at end of period, Number of Share Units | ||
Nonvested share units at beginning of period, Weighted Average Fair Value | ||
Granted, Weighted Average Fair Value | 32.92 | $ 32.57 |
Stock units vested and issued, Weighted Average Fair Value | 32.92 | |
Nonvested share units at end of period, Weighted Average Fair Value |
Pension Plans And Other Postr51
Pension Plans And Other Postretirement Benefits (Narrative) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Cash contributions made by the Company | $ 15,421 |
Pension Plans And Other Postr52
Pension Plans And Other Postretirement Benefits (Components Of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 794 | $ 784 | $ 2,382 | $ 2,394 |
Interest cost | 3,108 | 3,251 | 9,324 | 9,787 |
Expected return on plan assets | (4,270) | (4,215) | (12,810) | (12,696) |
Amortization of prior service cost | 145 | 145 | 435 | 435 |
Amortization of actuarial loss | 2,001 | 1,797 | 6,003 | 5,354 |
Settlement charge | 3,028 | |||
Special termination benefit charge | 302 | |||
Net periodic benefit cost | 1,778 | 1,762 | 5,334 | 8,604 |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 255 | 253 | 765 | 761 |
Interest cost | 737 | 726 | 2,211 | 2,202 |
Expected return on plan assets | (647) | (645) | (1,941) | (2,001) |
Amortization of prior service cost | (127) | (137) | (381) | (411) |
Amortization of actuarial loss | 291 | 220 | 873 | 707 |
Net periodic benefit cost | $ 509 | $ 417 | $ 1,527 | $ 1,258 |
Water And Wastewater Rates (Det
Water And Wastewater Rates (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Indiana And Ohio [Member] | |
Water And Wastewater Rates [Line Items] | |
Base rate increase designed to increase total operating revenues on an annual basis | $ 7,403 |
Illinois, New Jersey, And North Carolina [Member] | |
Water And Wastewater Rates [Line Items] | |
Infrastructure rehabilitation surcharges | $ 3,659 |
Taxes Other Than Income Taxes54
Taxes Other Than Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | $ 15,234 | $ 14,712 | $ 44,390 | $ 43,094 |
Property [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 6,955 | 7,007 | 20,608 | 20,119 |
Gross Receipts, Excise And Franchise [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 3,969 | 3,409 | 10,507 | 9,468 |
Payroll [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 2,066 | 2,140 | 7,322 | 7,775 |
Regulatory Assessments [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 674 | 639 | 1,933 | 1,991 |
Pumping Fees [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | 1,526 | 1,442 | 3,820 | 3,501 |
Other [Member] | ||||
Taxes Other Than Income [Line Items] | ||||
Total taxes other than income | $ 44 | $ 75 | $ 200 | $ 240 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2017segment | |
Segment Reporting Information [Line Items] | |
Operating Segments | 10 |
Reportable Segments | 1 |
Reportable Segment [Member] | |
Segment Reporting Information [Line Items] | |
Operating Segments | 8 |
Other [Member] | |
Segment Reporting Information [Line Items] | |
Operating Segments | 2 |
Segment Information (Company's
Segment Information (Company's Segment Information, Continuing Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 215,008 | $ 226,593 | $ 606,213 | $ 623,076 |
Operations and maintenance expense | 67,982 | 79,812 | 207,963 | 227,347 |
Depreciation | 34,264 | 33,881 | 101,508 | 97,645 |
Operating income (loss) | 97,486 | 97,799 | 251,994 | 253,623 |
Interest expense, net | 22,411 | 20,168 | 65,124 | 60,136 |
Allowance for funds used during construction | 3,914 | 2,267 | 10,570 | 6,446 |
Income tax expense (benefit) | 3,400 | 8,411 | 11,899 | 16,933 |
Net income (loss) | 76,225 | 73,170 | 186,265 | 184,533 |
Capital expenditures | 337,731 | 270,019 | ||
Regulated [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 214,032 | 222,231 | 602,341 | 606,323 |
Operations and maintenance expense | 70,772 | 73,013 | 210,842 | 210,014 |
Depreciation | 34,533 | 34,025 | 102,340 | 98,445 |
Operating income (loss) | 94,142 | 100,563 | 246,361 | 255,431 |
Interest expense, net | 20,753 | 19,167 | 60,277 | 57,061 |
Allowance for funds used during construction | 3,914 | 2,267 | 10,570 | 6,446 |
Income tax expense (benefit) | 3,138 | 9,027 | 12,243 | 18,610 |
Net income (loss) | 74,208 | 74,681 | 184,733 | 186,579 |
Capital expenditures | 337,321 | 269,046 | ||
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 976 | 4,362 | 3,872 | 16,753 |
Operations and maintenance expense | (2,790) | 6,799 | (2,879) | 17,333 |
Depreciation | (269) | (144) | (832) | (800) |
Operating income (loss) | 3,344 | (2,764) | 5,633 | (1,808) |
Interest expense, net | 1,658 | 1,001 | 4,847 | 3,075 |
Allowance for funds used during construction | ||||
Income tax expense (benefit) | 262 | (616) | (344) | (1,677) |
Net income (loss) | $ 2,017 | $ (1,511) | 1,532 | (2,046) |
Capital expenditures | $ 410 | $ 973 |
Segment Information (Company'57
Segment Information (Company's Segment Information, Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 6,545,381 | $ 6,158,991 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 189,485 | 205,289 |
Regulated [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 6,355,896 | $ 5,953,702 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Commitments And Contingencies [Abstract] | |
Aggregate amount accrued for loss contingencies | $ 16,898 |
Amount probable of recovery through insurance | 5,415 |
Insurance reserve for employee medical benefit program | $ 1,451 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Income Taxes [Line Items] | ||||||
Unrecognized tax benefits | $ 28,938,000 | $ 28,938,000 | $ 28,938,000 | $ 28,099,000 | ||
Effective income tax rate | 4.30% | 10.30% | 6.00% | 8.40% | ||
Unrecognized tax benefits that would impact effective tax rate | 23,700,000 | $ 23,700,000 | $ 23,700,000 | |||
Increase (Decrease) in Regulatory Assets and Liabilities | 96,140,000 | |||||
Federal [Member] | ||||||
Income Taxes [Line Items] | ||||||
Change in operating loss carryforward | 31,935,000 | |||||
Operating loss carryforwards | 81,208,000 | 81,208,000 | 81,208,000 | |||
Operating loss carryforwards, valuation allowance | 0 | 0 | $ 0 | |||
Operating loss carryforwards, expiration beginning dates | Jan. 1, 2032 | |||||
Unrecognized tax benefits | 64,738,000 | 64,738,000 | $ 64,738,000 | |||
Deferred tax assets, operating loss carryforwards | 145,947,000 | 145,947,000 | 145,947,000 | |||
State [Member] | ||||||
Income Taxes [Line Items] | ||||||
Change in operating loss carryforward | 23,173,000 | |||||
Operating loss carryforwards | 600,358,000 | 600,358,000 | $ 600,358,000 | |||
Operating loss carryforwards, expiration beginning dates | Jan. 1, 2023 | |||||
Unrecognized tax benefits | 85,523,000 | 85,523,000 | $ 85,523,000 | |||
Deferred tax assets, operating loss carryforwards | $ 685,880,000 | $ 685,880,000 | $ 685,880,000 |
Recent Accounting Pronounceme60
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Sep. 30, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of deferred charges and other assets to debt issuance costs | $ 375 | |
Adjustments for New Accounting Principle, Early Adoption [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Adjustment to retained earnings, before tax | $ 982 |