Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 21, 2017 | Jun. 30, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | AMERICAN STATES WATER CO | ||
Entity Central Index Key | 1,056,903 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 36,586,831 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,629,577 | $ 1,601,802 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Regulated utility plant, at cost | ||
Water | $ 1,514,419 | $ 1,428,024 |
Electric | 94,009 | 88,481 |
Total | 1,608,428 | 1,516,505 |
Non-regulated utility property, at cost | 11,897 | 11,032 |
Total utility plant, at cost | 1,620,325 | 1,527,537 |
Less — accumulated depreciation | (532,753) | (529,698) |
Utility plant before construction work in progress | 1,087,572 | 997,839 |
Construction work in progress | 63,354 | 62,955 |
Net utility plant | 1,150,926 | 1,060,794 |
Other Property and Investments | ||
Goodwill | 1,116 | 1,116 |
Other property and investments | 20,836 | 18,710 |
Total other property and investments | 21,952 | 19,826 |
Current Assets | ||
Cash and cash equivalents | 436 | 4,364 |
Accounts receivable-customers, less allowance for doubtful accounts | 19,993 | 18,940 |
Unbilled revenue | 24,391 | 19,490 |
Receivable from U.S. government, less allowance for doubtful accounts | 8,467 | 5,861 |
Other accounts receivable, less allowance for doubtful accounts | 3,151 | 2,302 |
Income taxes receivable | 17,867 | 10,793 |
Materials and supplies | 4,294 | 5,415 |
Regulatory assets — current | 43,296 | 30,134 |
Prepayments and other current assets | 3,735 | 3,229 |
Costs and estimated earnings in excess of billings on contracts | 41,245 | 32,169 |
Total current assets | 166,875 | 132,697 |
Regulatory and Other Assets | ||
Regulatory assets | 102,985 | 102,562 |
Costs and estimated earnings in excess of billings on contracts | 22,687 | 21,330 |
Other | 5,068 | 6,750 |
Total regulatory and other assets | 130,740 | 130,642 |
Total Assets | 1,470,493 | 1,343,959 |
Capitalization | ||
Common shareholder’s equity | 494,297 | 465,945 |
Long-term debt | 320,981 | 320,900 |
Total capitalization | 815,278 | 786,845 |
Current Liabilities | ||
Notes payable to banks | 90,000 | 28,000 |
Long-term debt — current | 330 | 312 |
Income taxes payable | 149 | 68 |
Accounts payable | 43,724 | 50,585 |
Accrued other taxes | 9,112 | 8,142 |
Accrued other taxes | 12,304 | 11,748 |
Accrued employee expenses | 3,864 | 3,626 |
Accrued interest | 4,901 | 7,053 |
Billings in excess of costs and estimated earnings on contracts | 2,263 | 3,764 |
Unrealized loss on purchased power contracts | 11,297 | 10,209 |
Other | 177,944 | 123,507 |
Other Credits | ||
Other Credits | 69,722 | 68,041 |
Advances for construction | 120,518 | 117,810 |
Contributions in aid of construction — net | 224,530 | 192,852 |
Deferred income taxes | 1,529 | 1,612 |
Unamortized investment tax credits | 49,856 | 42,666 |
Accrued pension and other post-retirement benefits | 11,116 | 10,626 |
Other | 477,271 | 433,607 |
Commitments and Contingencies (Notes 13 and 14) | 0 | 0 |
Total Capitalization and Liabilities | 1,470,493 | 1,343,959 |
GSWC | ||
Regulated utility plant, at cost | ||
Water | 1,514,419 | 1,428,024 |
Electric | 94,009 | 88,481 |
Total utility plant, at cost | 1,608,428 | 1,516,505 |
Less — accumulated depreciation | (524,927) | (522,749) |
Utility plant before construction work in progress | 1,083,501 | 993,756 |
Construction work in progress | 61,810 | 62,360 |
Net utility plant | 1,145,311 | 1,056,116 |
Other Property and Investments | ||
Other property and investments | 18,719 | 16,581 |
Total other property and investments | 18,719 | 16,581 |
Current Assets | ||
Cash and cash equivalents | 209 | 2,501 |
Accounts receivable-customers, less allowance for doubtful accounts | 19,993 | 18,940 |
Unbilled revenue | 17,700 | 18,181 |
Other accounts receivable, less allowance for doubtful accounts | 1,959 | 1,455 |
Income taxes receivable | 21,856 | 11,000 |
Materials and supplies | 3,724 | 4,860 |
Regulatory assets — current | 43,296 | 30,134 |
Prepayments and other current assets | 3,520 | 2,847 |
Total current assets | 112,257 | 89,918 |
Regulatory and Other Assets | ||
Regulatory assets | 102,985 | 102,562 |
Other | 4,906 | 6,702 |
Total regulatory and other assets | 107,891 | 109,264 |
Total Assets | 1,384,178 | 1,271,879 |
Capitalization | ||
Common shareholder’s equity | 446,770 | 423,730 |
Long-term debt | 320,981 | 320,900 |
Total capitalization | 767,751 | 744,630 |
Current Liabilities | ||
Inter-company payable | 61,726 | 12,000 |
Long-term debt — current | 330 | 312 |
Accounts payable | 34,648 | 39,610 |
Accrued other taxes | 8,870 | 7,830 |
Accrued other taxes | 10,983 | 10,630 |
Accrued employee expenses | 3,588 | 3,599 |
Accrued interest | 4,901 | 7,053 |
Unrealized loss on purchased power contracts | 10,925 | 9,921 |
Other | 135,971 | 90,955 |
Other Credits | ||
Other Credits | 69,722 | 68,041 |
Advances for construction | 120,518 | 117,810 |
Contributions in aid of construction — net | 227,798 | 195,658 |
Deferred income taxes | 1,529 | 1,612 |
Unamortized investment tax credits | 49,856 | 42,666 |
Accrued pension and other post-retirement benefits | 11,033 | 10,507 |
Other | 480,456 | 436,294 |
Total Capitalization and Liabilities | $ 1,384,178 | $ 1,271,879 |
CONSOLIDATED STATEMENTS OF CAPI
CONSOLIDATED STATEMENTS OF CAPITALIZATION - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Common Shareholders' Equity: | ||
Common shares, no par value | $ 247,232 | $ 245,022 |
Earnings reinvested in the business | 247,065 | 220,923 |
Long-Term Debt | ||
Less: Current maturities | (330) | (312) |
Liabilities Subject to Compromise, Debt and Accrued Interest | (4,271) | (4,641) |
Long-Term Debt | 320,981 | 320,900 |
Capitalization, Long-term Debt and Equity | 815,278 | 786,845 |
Common shareholder’s equity | 494,297 | 465,945 |
Debt and Capital Lease Obligations | 325,582 | 325,853 |
GSWC | ||
Common Shareholders' Equity: | ||
Common shares, no par value | 240,482 | 238,795 |
Earnings reinvested in the business | 184,935 | |
Long-Term Debt | ||
Less: Current maturities | (330) | (312) |
Liabilities Subject to Compromise, Debt and Accrued Interest | (4,271) | (4,641) |
Long-Term Debt | 320,981 | 320,900 |
Capitalization, Long-term Debt and Equity | 767,751 | 744,630 |
Common shareholder’s equity | 446,770 | 423,730 |
Debt and Capital Lease Obligations | 325,582 | |
6.81% notes due 2028 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 15,000 | 15,000 |
6.81% notes due 2028 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 15,000 | 15,000 |
6.59% notes due 2029 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 40,000 | 40,000 |
6.59% notes due 2029 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 40,000 | 40,000 |
7.875% notes due 2030 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 20,000 | 20,000 |
7.875% notes due 2030 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 20,000 | 20,000 |
7.23% notes due 2031 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 50,000 | 50,000 |
7.23% notes due 2031 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 50,000 | 50,000 |
6.00% notes due 2041 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 62,000 | 62,000 |
6.00% notes due 2041 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 62,000 | 62,000 |
3.45% private placement notes due 2029 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 15,000 | 15,000 |
3.45% private placement notes due 2029 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 15,000 | 15,000 |
9.56% private placement notes due 2031 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 28,000 | 28,000 |
9.56% private placement notes due 2031 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 28,000 | 28,000 |
5.87% private placement notes due 2028 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 40,000 | 40,000 |
5.87% private placement notes due 2028 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 40,000 | 40,000 |
6.70% private placement notes due 2019 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 40,000 | 40,000 |
6.70% private placement notes due 2019 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 40,000 | 40,000 |
5.50% tax-exempt obligation due 2026 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 7,730 | 7,730 |
5.50% tax-exempt obligation due 2026 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 7,730 | 7,730 |
Tax-Exempt State Water Project due 2035 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 3,902 | 4,000 |
Tax-Exempt State Water Project due 2035 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 3,902 | 4,000 |
Variable Rate Obligation due 2018 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 54 | 89 |
Variable Rate Obligation due 2018 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 54 | 89 |
American Recovery and Reinvestment Act Obligation due 2033 | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | 3,896 | 4,034 |
American Recovery and Reinvestment Act Obligation due 2033 | GSWC | ||
Long-Term Debt | ||
Debt and Capital Lease Obligations | $ 3,896 | $ 4,034 |
CONSOLIDATED STATEMENTS OF CAP4
CONSOLIDATED STATEMENTS OF CAPITALIZATION (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Capitalization, Long-term Debt and Equity | $ 815,278 | $ 786,845 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares outstanding | 36,571,360 | 36,501,914 |
GSWC | ||
Capitalization, Long-term Debt and Equity | $ 767,751 | $ 744,630 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares outstanding | 146 | 146 |
6.87% notes due 2023 | GSWC | ||
Interest rate per annum (as a percent) | 6.87% | |
7.00% notes due 2023 | GSWC | ||
Interest rate per annum (as a percent) | 7.00% | |
6.81% notes due 2028 | ||
Interest rate per annum (as a percent) | 6.81% | 6.81% |
6.81% notes due 2028 | GSWC | ||
Interest rate per annum (as a percent) | 6.81% | 6.81% |
6.59% notes due 2029 | ||
Interest rate per annum (as a percent) | 6.59% | 6.59% |
6.59% notes due 2029 | GSWC | ||
Interest rate per annum (as a percent) | 6.59% | 6.59% |
7.875% notes due 2030 | ||
Interest rate per annum (as a percent) | 7.875% | 7.875% |
7.875% notes due 2030 | GSWC | ||
Interest rate per annum (as a percent) | 7.875% | 7.875% |
7.23% notes due 2031 | ||
Interest rate per annum (as a percent) | 7.23% | 7.23% |
7.23% notes due 2031 | GSWC | ||
Interest rate per annum (as a percent) | 7.23% | 7.23% |
6.00% notes due 2041 | ||
Interest rate per annum (as a percent) | 6.00% | 6.00% |
6.00% notes due 2041 | GSWC | ||
Interest rate per annum (as a percent) | 6.00% | 6.00% |
3.45% private placement notes due 2029 | ||
Interest rate per annum (as a percent) | 3.45% | 3.45% |
3.45% private placement notes due 2029 | GSWC | ||
Interest rate per annum (as a percent) | 3.45% | 3.45% |
9.56% private placement notes due 2031 | ||
Interest rate per annum (as a percent) | 9.56% | 9.56% |
9.56% private placement notes due 2031 | GSWC | ||
Interest rate per annum (as a percent) | 9.56% | 9.56% |
5.87% private placement notes due 2028 | ||
Interest rate per annum (as a percent) | 5.87% | 5.87% |
5.87% private placement notes due 2028 | GSWC | ||
Interest rate per annum (as a percent) | 5.87% | 5.87% |
6.70% private placement notes due 2019 | ||
Interest rate per annum (as a percent) | 6.70% | 6.70% |
6.70% private placement notes due 2019 | GSWC | ||
Interest rate per annum (as a percent) | 6.70% | 6.70% |
5.50% tax-exempt obligation due 2026 | ||
Interest rate per annum (as a percent) | 5.50% | 5.50% |
5.50% tax-exempt obligation due 2026 | GSWC | ||
Interest rate per annum (as a percent) | 5.50% | 5.50% |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Operating Revenues | ||||
Water | $ 302,931 | $ 328,511 | $ 326,672 | |
Electric | 35,771 | 36,039 | 34,387 | |
Contracted services | 97,385 | 94,091 | 104,732 | |
Total operating revenues | 436,087 | 458,641 | 465,791 | |
Operating Expenses | ||||
Water purchased | 64,442 | 62,726 | 57,790 | |
Power purchased for pumping | 8,663 | 8,988 | 10,700 | |
Groundwater production assessment | 14,993 | 13,648 | 16,450 | |
Power purchased for resale | 10,387 | 10,395 | 9,649 | |
Supply cost balancing accounts | (12,206) | 7,785 | 6,346 | |
Other operation | 28,257 | 28,429 | 28,288 | |
Administrative and general | 80,994 | 79,817 | 78,268 | |
Depreciation and amortization | [1] | 38,850 | 42,033 | 41,073 |
Maintenance | 16,470 | 16,885 | 16,092 | |
Property and other taxes | 16,801 | 16,636 | 16,722 | |
Construction and Development Costs | 53,720 | 52,810 | 65,368 | |
Total operating expenses | 321,371 | 340,152 | 346,746 | |
Operating Income | 114,716 | 118,489 | 119,045 | |
Other Income and Expenses | ||||
Interest expense | (21,992) | (21,088) | (21,617) | |
Interest income | 757 | 458 | 927 | |
Other, net | 997 | 356 | 751 | |
Total other income and expenses | (20,238) | (20,274) | (19,939) | |
Income from operations before income tax expense | 94,478 | 98,215 | 99,106 | |
Income tax expense | 34,735 | 37,731 | 38,048 | |
Net Income | $ 59,743 | $ 60,484 | $ 61,058 | |
Basic Earnings Per Common Share | ||||
Income from continuing operations (in dollars per share) | $ 1.63 | $ 1.61 | $ 1.57 | |
Net Income (in dollars per share) | 1.63 | 1.61 | 1.57 | |
Fully Diluted Earnings Per Share | ||||
Income from continuing operations (in dollars per share) | 1.62 | 1.60 | 1.57 | |
Net Income (in dollars per share) | $ 1.62 | $ 1.60 | $ 1.57 | |
Weighted Average Number of Shares Outstanding (in shares) | 36,552 | 37,389 | 38,658 | |
Weighted Average Number of Diluted Shares (in shares) | 36,750 | 37,614 | 38,880 | |
Dividends Declared Per Common Share (in dollars per share) | $ 0.914 | $ 0.874 | $ 0.831 | |
GSWC | ||||
Operating Revenues | ||||
Water | $ 302,931 | $ 328,511 | $ 326,672 | |
Electric | 35,771 | 36,039 | 34,387 | |
Total operating revenues | 338,702 | 364,550 | 361,059 | |
Operating Expenses | ||||
Water purchased | 64,442 | 62,726 | 57,790 | |
Power purchased for pumping | 8,663 | 8,988 | 10,700 | |
Groundwater production assessment | 14,993 | 13,648 | 16,450 | |
Power purchased for resale | 10,387 | 10,395 | 9,649 | |
Supply cost balancing accounts | (12,206) | 7,785 | 6,346 | |
Other operation | 24,771 | 24,892 | 25,548 | |
Administrative and general | 64,066 | 64,877 | 65,814 | |
Depreciation and amortization | 37,804 | 40,893 | 39,854 | |
Maintenance | 14,519 | 14,693 | 13,945 | |
Property and other taxes | 15,444 | 15,244 | 15,221 | |
Total operating expenses | 242,883 | 264,141 | 261,317 | |
Operating Income | 95,819 | 100,409 | 99,742 | |
Other Income and Expenses | ||||
Interest expense | (21,782) | (20,998) | (21,524) | |
Interest income | 749 | 440 | 894 | |
Other, net | 792 | 212 | 751 | |
Total other income and expenses | (20,241) | (20,346) | (19,879) | |
Income from operations before income tax expense | 75,578 | 80,063 | 79,863 | |
Income tax expense | 28,609 | 32,472 | 32,006 | |
Net Income | $ 46,969 | $ 47,591 | $ 47,857 | |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmZlZWRjOTllOTkyOTRhZDJhMDM3ZjhmMzQ0ZWUwZGNhfFRleHRTZWxlY3Rpb246NDZERTVFNkFDQTdBQ0NCREY0MUU2RjJFOEQyMDhGM0UM} |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN COMMON SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | GSWC | Common Stock [Member] | Common Stock [Member]GSWC | Earnings Reinvested in the Business | Earnings Reinvested in the BusinessGSWC |
Balances at Dec. 31, 2013 | $ 492,404 | $ 437,613 | $ 253,961 | $ 233,721 | $ 238,443 | $ 203,892 |
Balances (in shares) at Dec. 31, 2013 | 38,721,000 | 146 | ||||
Balances (in shares) at Dec. 31, 2014 | 38,287,000 | 146 | ||||
Add: | ||||||
Net Income | 61,058 | 47,857 | 61,058 | 47,857 | ||
Issuance of Common Shares | $ 589 | $ 589 | ||||
Issuance of Common Shares (in shares) | 74,145 | 111,000 | ||||
Exercise of stock options (in shares) | 37,006 | |||||
Tax benefit from employee stock-based awards | $ 533 | 514 | $ 533 | $ 514 | ||
Compensation on stock-based awards | 1,508 | 1,206 | 1,508 | 1,206 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 197 | 166 | $ 197 | 166 | ||
Stock Repurchased During Period, Shares | 545,000 | |||||
Stock Repurchased During Period, Value | 17,180 | $ 3,589 | 13,591 | |||
Deduct: | ||||||
Dividends on Common Shares | 32,111 | 52,000 | 32,111 | 52,000 | ||
Dividend equivalent rights on stock-based awards | 197 | 166 | 197 | 166 | ||
Balances at Dec. 31, 2014 | 506,801 | 435,190 | $ 253,199 | $ 235,607 | 253,602 | 199,583 |
Balances (in shares) at Dec. 31, 2015 | 36,502,000 | 146 | ||||
Add: | ||||||
Net Income | $ 60,484 | 47,591 | 60,484 | 47,591 | ||
Issuance of Common Shares | 872 | $ 872 | ||||
Issuance of Common Shares (in shares) | 53,612 | |||||
Exercise of stock options (in shares) | 66,458 | |||||
Exercise of stock options and other issuance of Common Shares | $ 1,198 | $ 1,198 | ||||
Exercise of stock options and other issuance of Common Shares (in shares) | 120,000 | |||||
Tax benefit from employee stock-based awards | 877 | $ 877 | ||||
Compensation on stock-based awards | 2,168 | 2,077 | 2,168 | 2,077 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 270 | 239 | $ 270 | 239 | ||
Stock Repurchased During Period, Shares | 1,905,000 | |||||
Stock Repurchased During Period, Value | 72,893 | $ 12,690 | 60,203 | |||
Deduct: | ||||||
Dividends on Common Shares | 32,690 | 62,000 | 32,690 | 62,000 | ||
Dividend equivalent rights on stock-based awards | 270 | 239 | 270 | 239 | ||
Balances at Dec. 31, 2015 | 465,945 | 423,730 | $ 245,022 | $ 238,795 | 220,923 | 184,935 |
Balances (in shares) at Dec. 31, 2016 | 36,571,000 | 146 | ||||
Add: | ||||||
Net Income | $ 59,743 | 46,969 | 59,743 | 46,969 | ||
Issuance of Common Shares (in shares) | 56,900 | |||||
Exercise of stock options (in shares) | 12,546 | |||||
Exercise of stock options and other issuance of Common Shares | $ 235 | $ 235 | ||||
Exercise of stock options and other issuance of Common Shares (in shares) | 69,000 | |||||
Tax benefit from employee stock-based awards | 581 | 501 | $ 581 | $ 501 | ||
Compensation on stock-based awards | 1,201 | 1,020 | 1,201 | 1,020 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 193 | 166 | 193 | 166 | ||
Deduct: | ||||||
Dividends on Common Shares | 33,408 | 25,450 | 33,408 | 25,450 | ||
Dividend equivalent rights on stock-based awards | 193 | 166 | 193 | 166 | ||
Balances at Dec. 31, 2016 | $ 494,297 | $ 446,770 | $ 247,232 | $ 240,482 | $ 247,065 | $ 206,288 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows From Operating Activities: | |||
Net Income | $ 59,743 | $ 60,484 | $ 61,058 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 39,109 | 42,674 | 41,751 |
Provision for doubtful accounts | 619 | 870 | 991 |
Deferred income taxes and investment tax credits | 27,640 | 10,423 | 32,316 |
Stock-based compensation expense | 2,538 | 2,754 | 2,222 |
Other - net | (397) | 838 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable - customers | (1,750) | (923) | 3,979 |
Unbilled revenue | (4,901) | 1,932 | (2,870) |
Other accounts receivable | (1,233) | 1,243 | 1,029 |
Receivables from the U.S. government | (2,606) | 848 | 397 |
Materials and supplies | 1,121 | (1,827) | 970 |
Prepayments and other current assets | 2,239 | 1,580 | 973 |
Costs and estimated earnings in excess of billings on uncompleted contracts | (10,433) | (3,223) | 6,159 |
Increase (Decrease) in Regulatory Assets and Liabilities | (5,610) | (26,422) | 26,385 |
Accounts payable | (3,442) | 679 | (1,622) |
Income taxes receivable/payable | (6,993) | 9,630 | (11,648) |
Billings in excess of costs and estimated earnings on uncompleted contracts | (1,501) | (7,972) | 4,884 |
Increase (Decrease) in Pension and Postretirement Obligations | (289) | 616 | (2,356) |
Other liabilities | 3,095 | 941 | (1,348) |
Net cash provided | 96,949 | 95,145 | 163,270 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (129,867) | (87,323) | (72,553) |
Payments to Acquire Investments | (1,354) | (2,869) | (1,568) |
Proceeds from Sale of Property, Plant, and Equipment | 0 | 54 | 62 |
Net cash used | (131,221) | (90,138) | (74,059) |
Proceeds from Issuance of Common Shares and Stock Option Exercises | 235 | 1,198 | 589 |
Cash Flows From Financing Activities: | |||
Payments for Repurchase of Common Stock | 0 | (72,893) | (17,180) |
Tax benefits from exercise of stock-based awards | 581 | 877 | 533 |
Receipt of advances for and contributions in aid of construction | 6,660 | 3,731 | 7,598 |
Refunds on advances for construction | (3,921) | (3,660) | (3,469) |
Retirement or repayments of long-term debt | (313) | (237) | (21,287) |
Proceeds from issuance of long-term debt, net of issuance costs | 0 | 0 | 14,846 |
Net change in notes payable to banks | 62,000 | 28,000 | 0 |
Dividends paid | (33,408) | (32,690) | (32,111) |
Other | (1,490) | (957) | (968) |
Net cash provided (used) | 30,344 | (76,631) | (51,449) |
Net increase (decrease) in cash and cash equivalents | (3,928) | (71,624) | 37,762 |
Cash and cash equivalents, beginning of year | 4,364 | 75,988 | 38,226 |
Cash and cash equivalents, end of year | 436 | 4,364 | 75,988 |
GSWC | |||
Cash Flows From Operating Activities: | |||
Net Income | 46,969 | 47,591 | 47,857 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 38,063 | 41,534 | 40,532 |
Provision for doubtful accounts | 627 | 845 | 1,054 |
Deferred income taxes and investment tax credits | 28,099 | 10,719 | 34,352 |
Stock-based compensation expense | 2,118 | 2,443 | 1,748 |
Other - net | (352) | 822 | (12) |
Changes in assets and liabilities: | |||
Accounts receivable - customers | (1,750) | (923) | 3,979 |
Unbilled revenue | 481 | (448) | 819 |
Other accounts receivable | (896) | 1,067 | 670 |
Materials and supplies | 1,136 | (2,069) | (932) |
Prepayments and other current assets | 2,114 | 440 | 583 |
Increase (Decrease) in Regulatory Assets and Liabilities | (5,610) | (26,422) | 26,386 |
Accounts payable | (1,514) | 1,940 | (1,676) |
Inter-company receivable/payable | 280 | 445 | 219 |
Income taxes receivable/payable from/to Parent | (10,856) | 18,580 | (19,876) |
Increase (Decrease) in Pension and Postretirement Obligations | (289) | 616 | (2,356) |
Other liabilities | 2,666 | 358 | (664) |
Net cash provided | 101,286 | 97,538 | 132,683 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (127,913) | (86,144) | (70,888) |
Origination of Notes Receivable from Related Parties | 0 | (20,700) | (8,300) |
Repayment of Notes Receivable from Related Parties | 0 | 20,700 | 8,800 |
Payments for (Proceeds from) Other Investing Activities | (1,389) | (2,869) | (1,568) |
Net cash used | (129,302) | (89,013) | (71,956) |
Cash Flows From Financing Activities: | |||
Tax benefits from exercise of stock-based awards | 501 | 872 | 514 |
Receipt of advances for and contributions in aid of construction | 6,660 | 3,731 | 7,598 |
Refunds on advances for construction | (3,921) | (3,660) | (3,469) |
Retirement or repayments of long-term debt | (313) | (237) | (21,287) |
Proceeds from issuance of long-term debt, net of issuance costs | 0 | 0 | 14,846 |
Net change in inter-company borrowings | 49,500 | 12,000 | 0 |
Dividends paid | (25,450) | (62,000) | (52,000) |
Other | (1,253) | (735) | (799) |
Net cash provided (used) | 25,724 | (50,029) | (54,597) |
Net increase (decrease) in cash and cash equivalents | (2,292) | (41,504) | 6,130 |
Cash and cash equivalents, beginning of year | 2,501 | 44,005 | 37,875 |
Cash and cash equivalents, end of year | $ 209 | $ 2,501 | $ 44,005 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations : American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”) and American States Utility Services, Inc. (“ASUS”) (and its wholly owned subsidiaries, Fort Bliss Water Services Company (“FBWS”), Terrapin Utility Services, Inc. (“TUS”), Old Dominion Utility Services, Inc. (“ODUS”), Palmetto State Utility Services, Inc. (“PSUS”), Old North Utility Services, Inc. (“ONUS”), and Emerald Coast Utility Services, Inc. (“ECUS”)). AWR and its subsidiaries may be collectively referred to as “Registrant” or “the Company.” The subsidiaries of ASUS are collectively referred to as the “Military Utility Privatization Subsidiaries.” GSWC is a public utility engaged principally in the purchase, production, distribution and sale of water in California serving approximately 261,000 customers. GSWC also distributes electricity in several San Bernardino County mountain communities in California serving approximately 24,000 electric customers through its Bear Valley Electric Service (“BVES”) division. Although Registrant has a diversified base of residential, industrial and other customers, revenues derived from commercial and residential water customers accounted for approximately 90% of total water revenues in 2016 , 2015 and 2014 . The California Public Utilities Commission (“CPUC”) regulates GSWC’s water and electric businesses in matters including properties, rates, services, facilities, and transactions by GSWC with its affiliates. ASUS, through its wholly owned subsidiaries, operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various United States military bases pursuant to 50 -year firm fixed-price contracts. These contracts are subject to periodic price redeterminations or economic price adjustments and modifications for changes in circumstances, changes in laws and regulations and additions to the contract value for new construction of facilities at the military bases. There is no direct regulatory oversight by the CPUC over AWR or the operations, rates or services provided by ASUS or the Military Utility Privatization Subsidiaries. Basis of Presentation : The consolidated financial statements and notes thereto are presented in a combined report filed by two separate Registrants: AWR and GSWC. References in this report to “Registrant” are to AWR and GSWC, collectively, unless otherwise specified. Certain prior period amounts have been reclassified to conform to the current period presentation of debt issuance costs. AWR owns all of the outstanding Common Shares of GSWC and ASUS. ASUS owns all of the outstanding Common shares of the Military Utility Privatization Subsidiaries. The consolidated financial statements of AWR include the accounts of AWR and its subsidiaries, all of which are wholly owned. These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. Inter-company transactions and balances have been eliminated in the AWR consolidated financial statements. Related Party Transactions : GSWC and ASUS provide and/or receive various support services to and from their parent, AWR, and among themselves. GSWC also allocates certain corporate office administrative and general costs to its affiliate, ASUS, using allocation factors approved by the CPUC. During the years ended December 31, 2016 , 2015 and 2014 , GSWC allocated to ASUS approximately $3.9 million , $2.6 million and $2.7 million , respectively, of corporate office administrative and general costs. In addition, AWR has a $150.0 million syndicated credit facility. AWR borrows under this facility and provides funds to its subsidiaries, including GSWC, in support of their operations. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest cost under the credit facility. Amounts owed to GSWC by AWR, including for allocated expenses, are included in GSWC's inter-company receivables as of December 31, 2016 and 2015 . In October 2015, AWR issued interest bearing promissory notes (the "Notes") to GSWC and ASUS for $40 million and $10 million , respectively, which expire on May 23, 2018. Under the terms of the Notes, AWR may borrow from GSWC and ASUS amounts up to $40 million and $10 million , respectively, for working capital purposes. AWR agrees to pay any unpaid principal amounts outstanding under these notes, plus accrued interest. As of December 31, 2016 and 2015, there were no amounts outstanding under these notes. Utility Accounting : Registrant’s accounting policies conform to accounting principles generally accepted in the United States of America ("U.S. GAAP"), including the accounting principles for rate-regulated enterprises, which reflect the ratemaking policies of the CPUC and the Federal Energy Regulatory Commission. GSWC has incurred various costs and received various credits reflected as regulatory assets and liabilities. Accounting for such costs and credits as regulatory assets and liabilities is in accordance with the guidance for accounting for the effects of certain types of regulation. This guidance sets forth the application of U.S. GAAP for those companies whose rates are established by or are subject to approval by an independent third-party regulator. Under such accounting guidance, rate regulated entities defer costs and credits on the balance sheet as regulatory assets and liabilities when it is probable that those costs and credits will be recognized in the ratemaking process in a period different from the period in which they would have been reflected in income by an unregulated company. These regulatory assets and liabilities are then recognized in the income statement in the period in which the same amounts are reflected in the rates charged for service. The amounts included as regulatory assets and liabilities that will be collected over a period exceeding one year are classified as long-term assets and liabilities as of December 31, 2016 and 2015 . Property and Depreciation : GSWC capitalizes, as utility plant, the cost of construction and the cost of additions, betterments and replacements of retired units of property. Such cost includes labor, material and certain indirect charges. Water systems acquired are recorded at estimated original cost of utility plant when first devoted to utility service and the applicable accumulated depreciation is recorded to accumulated depreciation. The difference between the estimated original cost, less accumulated depreciation, and the purchase price, if recognized by the regulator, is recorded as an acquisition adjustment within utility plant. Depreciation is computed on the straight-line, remaining-life basis, group method, based on depreciable plant in accordance with the applicable ratemaking process. GSWC's provision for depreciation expressed as a percentage of the aggregate depreciable asset balances was 2.9% for 2016 , and 3.2% for 2015 and 2014 . Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $259,000 , $641,000 and $678,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively. Expenditures for maintenance and repairs are expensed as incurred. Replaced or retired property costs, including cost of removal, are charged to the accumulated provision for depreciation. Property owned and depreciation recorded by ASUS and its subsidiaries are not material to Registrant’s financial statements. Estimated useful lives of GSWC’s utility plant, as authorized by the CPUC, are as follows: Source of water supply 30 years to 50 years Pumping 25 years to 40 years Water treatment 20 years to 35 years Transmission and distribution 25 years to 55 years Generation 40 years Other plant 7 years to 40 years Asset Retirement Obligations : GSWC has a legal obligation for the retirement of its wells, which by law need to be properly capped at the time of removal. As such, GSWC incurs asset retirement obligations. GSWC records the fair value of a liability for these asset retirement obligations in the period in which they are incurred. When the liability is initially recorded, GSWC capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, GSWC either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. Retirement costs have historically been recovered through rates subsequent to the retirement costs being incurred. Accordingly, GSWC’s asset retirement obligations are reflected as a regulatory asset. GSWC also reflects the gain or loss at settlement as a regulatory asset or liability on the balance sheet. With regards to removal costs associated with certain other long-lived assets, such as water mains, distribution and transmission assets, asset retirement obligations have not been recognized as GSWC believes that it will not be obligated to retire these assets. There are no CPUC rules or regulations that require GSWC to remove any of its other long-lived assets. In addition, GSWC’s water pipelines are not subject to regulation by any federal regulatory agency. GSWC has franchise agreements with various municipalities in order to use the public right of way for utility purposes (i.e., operate water distribution and transmission assets), and if certain events occur in the future, GSWC could be required to remove or relocate certain of its pipelines. However, it is not possible to estimate an asset retirement amount since the timing and the amount of assets that may be required to be removed, if any, is not known. Amounts recorded for asset retirement obligations are subject to various assumptions and determinations, such as determining whether a legal obligation exists to remove assets, and estimating the fair value of the costs of removal, when final removal will occur and the credit-adjusted risk-free interest rates to be utilized on discounting future liabilities. Changes that may arise over time with regard to these assumptions will change amounts recorded in the future. Revisions in estimates for timing or estimated cash flows are recognized as changes in the carrying amount of the liability and the related capitalized asset. The estimated fair value of the costs of removal was based on third party costs. Impairment of Long-Lived Assets : Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable in accordance with accounting guidance for impairment or disposal of long-lived assets. Registrant would recognize an impairment loss on its regulated assets only if the carrying value amount of a long-lived asset is not recoverable from customer rates authorized by the CPUC. Impairment loss is measured as the excess of the carrying value over the amounts recovered in customer rates. For the years ended December 31, 2016 , 2015 and 2014 , no impairment loss was incurred. Goodwill : At December 31, 2016 and 2015 , AWR had approximately $1.1 million of goodwill. The $1.1 million goodwill arose from ASUS’s acquisition of a subcontractor’s business at some of the Military Utility Privatization Subsidiaries. In accordance with the accounting guidance for testing goodwill, AWR annually assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. For 2016 , AWR’s assessment of qualitative factors did not indicate that an impairment had occurred for the goodwill amount of $1.1 million at ASUS. Cash and Cash Equivalents : Cash and cash equivalents include short-term cash investments with an original maturity of three months or less. At times, cash and cash equivalent balances may be in excess of federally insured limits. Cash and cash equivalents are held with financial institutions with high credit standings. Accounts Receivable : Accounts receivable is reported on the balance sheet net of any allowance for doubtful accounts. The allowance for doubtful accounts is Registrant’s best estimate of the amount of probable credit losses in Registrant’s existing accounts receivable from its water and electric customers, and is determined based on historical write-off experience and the aging of account balances. Registrant reviews the allowance for doubtful accounts quarterly. Account balances are written off against the allowance when it is probable the receivable will not be recovered. When utility customers request extended payment terms, credit is extended based on regulatory guidelines, and collateral is not required. Receivables from the U.S. Government include amounts due under contracts with the U.S. Government to operate and maintain, and/or provide construction services for the water and/or wastewater systems at military bases. Other accounts receivable consist of amounts due from third parties (non-utility customers) for various reasons, including amounts due from contractors, amounts due under settlement agreements, and amounts due from other third-party prime government contractors pursuant to agreements for construction of water and/or wastewater facilities for such third-party prime contractors. The allowance for these other accounts receivable is based on Registrant’s evaluation of the receivable portfolio under current conditions and a review of specific problems and such other factors that, in Registrant’s judgment, should be considered in estimating losses. Allowances for doubtful accounts are disclosed in Note 16. Materials and Supplies : Materials and supplies are stated at the lower of cost or market. Cost is computed using average cost. Major classes of materials include pipe, hydrants and valves. Interest : Interest incurred during the construction of capital assets has generally not been capitalized for financial reporting purposes as such policy is not followed in the ratemaking process. Interest expense is generally recovered through the regulatory process. However, the CPUC has authorized certain capital projects to be filed for revenue recovery with advice letters when those projects are completed. During the time that such projects are under development and construction, GSWC may accrue an allowance for funds used during construction (“AFUDC”) on the incurred expenditures to offset the cost of financing project construction. For the years ended December 31, 2016 , 2015 and 2014 , GSWC recorded $101,000 , $694,000 and $24,000 , respectively, of AFUDC related to these capital projects based on a weighted cost of capital of 8.34% for water and a cost of debt of 6.96% for electric, as approved by the CPUC. Water and Electric Operating Revenues: GSWC records water and electric utility operating revenues when the service is provided to customers. Revenues include amounts billed to customers on a cycle basis based on meter readings for services provided and unbilled revenues representing estimated amounts to be billed for usage from the last meter reading date to the end of the accounting period. Unbilled revenues are based on historic customer usage to estimate unbilled usage. Flat-rate customers are billed in advance at the beginning of the service period. Revenue from flat-rate customers is deferred and adjustments are calculated to determine the revenue related to the applicable period. Alternative-Revenue Programs: As authorized by the CPUC, GSWC records in revenues the difference between the adopted level of volumetric revenues as authorized by the CPUC for metered accounts (volumetric revenues) and the actual volumetric revenues recovered in customer rates. If this difference results in an under-collection of revenues, GSWC records the additional revenue only to the extent that they are expected to be collected within 24 months following the year in which they are recorded in accordance with the accounting guidance for alternative-revenue programs. Contracted Services Revenues : Revenues from ASUS contract operations and maintenance agreements are recognized on a monthly basis when services have been rendered to the U.S. government. Revenues for construction contracts are recognized based on the percentage-of-completion and cost-plus methods of accounting. In accordance with U.S. GAAP, revenue recognition under these methods require ASUS to estimate the progress toward completion on a contract in terms of efforts (such as costs incurred) or, in the case of the percentage of completion method, in terms of results achieved (such as units constructed). These approaches are used because management considers them to be the best available measure of progress on these contracts. Revenues from cost-plus contracts of ASUS are recognized on the basis of costs incurred during the period plus the profit earned, measured by the cost-to-cost method. Unbilled receivables from the U.S. government represent amounts to be billed for construction work completed and/or for services rendered pursuant to contracts with the U.S government, which are not presently billable but which will be billed under the terms of those contracts. Construction costs for ASUS include all direct material and labor costs charged by subcontractors, direct labor of employees of the Military Utility Privatization Subsidiaries, and those indirect costs related to contract performance, such as indirect labor, supplies, and tools. The factors considered in including such costs in revenues and expenses are that ASUS and/or its subsidiaries: (i) are the primary obligor in these arrangements with the U.S. government and the third party prime contractors, (ii) have latitude in establishing pricing, and (iii) bear credit risk in the collection of receivables. Administrative and general costs are charged to expense as incurred. Precontract costs for ASUS, which consist of design and engineering labor costs, are deferred if they are probable of recovery and are expensed as incurred if they are not probable of recovery. Deferred precontract costs have been immaterial to date. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, change orders and estimated profitability, including those arising from contract penalty provisions, and final contract settlements may result in revisions to costs and income for ASUS and are recognized in the period in which the revisions are determined. The asset, “Costs and estimated earnings in excess of billings on contracts,” represents revenues recognized in excess of amounts billed. The liability, “Billings in excess of costs and estimated earnings on contracts,” represents billings in excess of revenues recognized. Amounts expected to be earned/collected in the next 12-months have been classified as current. Debt Issuance Costs and Redemption Premiums : Original debt issuance costs are deducted from the carrying value of the associated debt liability and amortized over the lives of the respective issues. Premiums paid on the early redemption of debt, which is reacquired through refunding, are deferred and amortized over the life of the debt issued to finance the refunding as Registrant normally receives recovery of these costs in rates. Advances for Construction and Contributions in Aid of Construction : Advances for construction represent amounts advanced by developers for the cost to construct water system facilities in order to extend water service to their properties. Advances are generally refundable in equal annual installments, generally over 40 years . In certain instances, GSWC makes refunds on these advances over a specific period of time based on operating revenues related to the main or as new customers are connected to receive service from the main. Utility plant funded by advances and contributions is excluded from rate base. Generally, GSWC depreciates contributed property and amortizes contributions in aid of construction at the composite rate of the related property. Contributions in aid of construction are similar to advances, but require no refunding. Fair Value of Financial Instruments : For cash and cash equivalents, accounts receivable, accounts payable and short-term debt, the carrying amount is assumed to approximate fair value due to the short-term nature of the amounts. The table below estimates the fair value of long-term debt issued by GSWC. Rates available to GSWC at December 31, 2016 and 2015 for debt with similar terms and remaining maturities were used to estimate fair value for long-term debt. Changes in the assumptions will produce differing results. 2016 2015 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt—GSWC (1) $ 325,582 $ 423,124 $ 325,853 $ 403,844 (1) Excludes debt issuance costs and redemption premiums. The accounting guidance for fair value measurements applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. Under the accounting guidance, GSWC makes fair value measurements that are classified and disclosed in one of the following three categories: Level 1 : Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 : Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; or Level 3 : Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Publicly issued notes, private placement notes and other long-term debt are measured using current U.S. corporate bond yields for similar debt instruments and are classified as Level 2. The following table sets forth by level, within the fair value hierarchy, GSWC’s long-term debt measured at fair value as of December 31, 2016 : (dollars in thousands) Level 1 Level 2 Level 3 Total Long-term debt—GSWC — $ 423,124 — $ 423,124 Stock Awards : AWR has issued stock awards to its employees under the 2000 Stock Incentive Plan, ("2000 employee plan"), the 2008 Stock Incentive Plan, ("2008 employee plan"), and the 2016 Stock Incentive Plan, ("2016 employee plan"). AWR has also issued stock awards to its directors under the 2003 Non-Employee Directors Stock Plan, ("2003 directors plan"), and the 2013 Non-Employee Directors Plan, ("2013 directors plan"). Registrant applies the provisions in the accounting guidance for share-based payments in accounting for all of its stock-based awards. See Note 12 for further discussion. Sales and Use Taxes : GSWC bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which GSWC pays to various municipalities (based on ordinances adopted by these municipalities) in order to use public rights of way for utility purposes. GSWC bills these franchise fees to its customers based on a CPUC-authorized rate for each rate-making area as applicable. These franchise fees, which are required to be paid regardless of GSWC’s ability to collect them from its customers, are accounted for on a gross basis. GSWC’s franchise fees billed to customers and recorded as operating revenue were approximately $3.5 million , $3.8 million and $3.7 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. When GSWC acts as an agent, and the tax is not required to be remitted if it is not collected from the customer, the taxes are accounted for on a net basis. Depending on the state in which its subsidiary operations are conducted, ASUS is also subject to certain state non-income tax assessments generally computed on a “gross receipts” or “gross revenues” basis. These non-income tax assessments are required to be paid regardless of whether the subsidiary is reimbursed by the U.S. government for these assessments under its 50-year contracts, including modifications to these contracts. The non-income tax assessments are accounted for on a gross basis and totaled $309,000 , $367,000 and $490,000 during the years ended December 31, 2016 , 2015 and 2014 , respectively. Recently Issued Accounting Pronouncements : In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, rather than as an asset. The standard does not affect the recognition and measurement of debt issuance costs. Registrant adopted the guidance effective January 1, 2016. As of December 31, 2016 and 2015 , Registrant had $4.3 million in debt issuance costs reflected under "Long-term debt." In March 2016, the FASB issued Accounting Standard Update 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation - Stock Compensation. Under the new guidance, the tax effects related to share-based payments at settlement (or expiration) will be required to be recorded through the income statement rather than through equity, further increasing the volatility of income tax expense. The new standard also removes the requirement to delay recognition of a windfall tax benefit until an employer reduces its current taxes payable. It also permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for shared-based payment awards. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Once adopted, income tax benefits in excess of compensation costs or tax deficiencies for share-based compensation will be recorded to the income tax provision, instead of to Registrant's shareholders' equity, which will impact the effective tax rate. Registrant will adopt the new standard during the first quarter of 2017, effective January 1, 2017, and it does not expect the new guidance to have a significant impact on Registrant's net earnings or effective tax rate. In May 2014, the FASB issued updated accounting guidance on revenue recognition. Under this guidance, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what the entity expects in exchange for the goods or services. The guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and adoption is not permitted earlier than 2017. The guidance allows entities to select one of two methods of adoption, either the full retrospective approach, meaning the guidance would be applied to all periods presented, or modified retrospective approach, meaning the cumulative effect of applying the guidance would be recognized as an adjustment to opening retained earnings at January 1, 2018, along with providing certain additional disclosures. Registrant will adopt this guidance in the fiscal year beginning January 1, 2018 and expects to adopt this guidance under the modified retrospective approach. Management continues to assess all potential impacts of the standard, and does not believe the new standard will have an impact on GSWC's revenues for water and electric customer usage and meter charges. At this time, it is not clear how the new standard applies to contributions in aid of construction-type contracts which, under current U.S. GAAP, are recorded as liabilities and a reduction to rate base. In instances where construction contracts contain more than one distinct good or service, as defined by the standard, the new standard may affect the timing of when Registrant recognizes contracted services revenue for such contracts. In February 2016, the FASB issued a new lease accounting standard, Leases (ASC 842). Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). 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 standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management has not yet determined the effect of the standard on the Company's ongoing financial reporting. 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. Registrant is currently evaluating the impact of this new standard on its consolidated cash flow statement. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2016 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters In accordance with accounting principles for rate-regulated enterprises, Registrant records regulatory assets, which represent probable future recovery of costs from customers through the ratemaking process, and regulatory liabilities, which represent probable future refunds that are to be credited to customers through the ratemaking process. At December 31, 2016 , Registrant had approximately $56.9 million of regulatory assets, net of regulatory liabilities, not accruing carrying costs. Of this amount, $26.8 million relates to the underfunded position in Registrant's pension and other post-retirement obligations, $4.9 million relates to a memorandum account authorized by the CPUC to track unrealized gains and losses on BVES's purchase power contracts over the term of the contracts, and $20.1 million relates to deferred income taxes representing accelerated tax benefits flowed through to customers, which will be included in rates concurrently with recognition of the associated future tax expense. The remainder relates to other items that do not provide for or incur carrying costs. Regulatory assets represent costs incurred by GSWC for which it has received or expects to receive rate recovery in the future. In determining the probability of costs being recognized in other periods, GSWC considers regulatory rules and decisions, past practices, and other facts or circumstances that would indicate if recovery is probable. If the CPUC determines that a portion of GSWC’s assets are not recoverable in customer rates, GSWC must determine if it has suffered an asset impairment that requires it to write down the asset's value. Regulatory assets are offset against regulatory liabilities within each rate-making area. Amounts expected to be collected or refunded in the next twelve months have been classified as current assets and current liabilities by rate-making area. Regulatory assets, less regulatory liabilities, included in the consolidated balance sheets are as follows: December 31, (dollars in thousands) 2016 2015 GSWC Water Revenue Adjustment Mechanism and Modified Cost Balancing Account $ 47,340 $ 45,171 Costs deferred for future recovery on Aerojet case 11,820 12,699 Pensions and other post-retirement obligations (Note 11) 28,118 21,996 Derivative unrealized loss (Note 4) 4,901 7,053 Flow-through taxes, net (Note 10) 20,134 16,176 Low income rate assistance balancing accounts 8,272 8,699 General rate case memorandum accounts 13,929 4,433 Other regulatory assets 17,633 21,235 Various refunds to customers (5,866 ) (4,766 ) Total $ 146,281 $ 132,696 Water General Rate Case On December 15, 2016, the CPUC issued a final decision on GSWC's water general rate case. GSWC filed a general rate case application in July 2014 for all of its water ratemaking areas and the general office to determine new rates for the years 2016 - 2018. The new rates approved by the CPUC were retroactive to January 1, 2016. The 2016 adopted revenues were lower than in 2015 due primarily to reductions in (i) supply costs caused by lower consumption, (ii) depreciation expense resulting from an updated depreciation study, and (iii) other operating expenses. In addition, in accordance with a settlement between GSWC and the CPUC's Office of Ratepayer Advocates, the decision used updated inflation index values to calculate operating expense increases for 2015 and 2016. These recent inflation indices were much lower than the inflation indices used in July 2014 when the water rate case application was filed. The decision also approved updated consumption levels used to calculate rates for 2016 - 2018, which reflect state-mandated conservation targets that were previously in place. While the 2016 adopted revenue requirement is lower than 2015, customer rates for 2016 were higher on a total company basis than in 2015 due to lower consumption levels. As a result, as of December 31, 2016, GSWC added $9.5 million to the general rate case memorandum accounts regulatory asset representing the rate difference between interim rates and final rates authorized by the CPUC, retroactive to January 1, 2016. Surcharges will be implemented to recover the retroactive rate difference over approximately 12 - 24 -months. The decision also temporarily removed the cap for the current rate cycle on total Water Revenue Adjustment Mechanism/Modified Cost Balancing Account surcharges in any given calendar year of 10% of the last authorized revenue requirement. Finally, the decision approved recovery of previously incurred costs that were being tracked in CPUC-authorized memorandum accounts, which resulted in the recording of approximately $800,000 in other regulatory assets with a corresponding reduction to administrative and general expenses for 2016. Alternative-Revenue Programs: Under the Water Revenue Adjustment Mechanism (“WRAM”), GSWC records the difference between the adopted level of volumetric revenues as authorized by the CPUC for metered accounts (adopted volumetric revenues) and the actual volumetric revenues recovered in customer rates. While the WRAM tracks volumetric-based revenues, the revenue requirements approved by the CPUC include service charges, flat rate charges, and other items that are not subject to the WRAM. The adopted volumetric revenues consider the seasonality of consumption of water based upon historical averages. The variance between adopted volumetric revenues and actual billed volumetric revenues for metered accounts is recorded as a component of revenue with an offsetting entry to an asset or liability balancing account (tracked individually for each rate making area). The variance amount may be positive or negative and represents amounts that will be billed or refunded to customers in the future. The WRAM only applies to customer classes with conservation rates in place. The majority of GSWC’s water customers have conservation rate structures. Under the Modified Cost Balancing Account (“MCBA”), GSWC tracks adopted expense levels for purchased water, purchased power and pump taxes, as established by the CPUC. Variances (which include the effects of changes in both rate and volume) between adopted and actual purchased water, purchased power, and pump tax expenses are recorded as a component of the MCBA to be recovered from or refunded to GSWC’s customers at a later date. This is reflected with an offsetting entry to an asset or liability balancing account (tracked individually for each rate-making area). Unlike the WRAM, the MCBA applies to all customer classes. The recovery or refund of the WRAM is netted against the MCBA over- or under-collection for the corresponding rate-making area and bears interest at the current 90 -day commercial-paper rate. During the year ended December 31, 2016 , surcharges of $18.4 million were billed to customers to recover the WRAM/MCBA balances as of December 31, 2015. During 2016 , GSWC recorded an additional $19.7 million under-collection in the WRAM account, net of the MCBA. The majority of this balance represents an under-collection of supply costs incurred and recorded in the MCBA due to a higher volume of purchased water as compared to adopted. As of December 31, 2016 , GSWC had an aggregated regulatory asset of $47.3 million , which is comprised of a $34.7 million under-collection in the WRAM accounts and a $12.6 million under-collection in the MCBA accounts. In March 2017, GSWC is expected to file with the CPUC for recovery of the 2016 WRAM/MCBA balances. As required by the accounting guidance for alternative revenue programs, GSWC is required to collect its WRAM balances within 24 months following the year in which an under-collection is recorded. The CPUC has set the recovery period for under-collected WRAM balances that are up to 15% of adopted annual revenues at 18 months or less. For under-collected balances greater than 15% , the recovery period is 19 to 36 months. The recovery periods for the majority of GSWC's WRAM/MCBA balances are primarily within the 12 to 24 month period; however, there were some ratemaking areas that had recovery periods greater than 24 months . Based on the current CPUC-stipulated recovery periods, as of December 31, 2015, GSWC had estimated that approximately $1.4 million of its 2015 WRAM under-collection would not be collected within 24 months as required for revenue recognition under the accounting guidance for alternative revenue programs. As a result, during the fourth quarter of 2015, GSWC did not record $1.4 million of the 2015 WRAM under-collection balance as revenue. This amount is being recognized as revenue when it is determined that it will be collected within 24 months . Approximately $910,000 of the 2015 WRAM was recognized in 2016 with the remaining $510,000 to be recognized in future periods. Costs Deferred for Future Recovery : The CPUC authorized a memorandum account to allow for the recovery of costs incurred by GSWC related to contamination lawsuits brought against Aerojet-General Corporation ("Aerojet") and the state of California. In July 2005, the CPUC authorized GSWC to recover approximately $21.3 million of the Aerojet litigation memorandum account, through a rate surcharge, which will continue for no longer than 20 years. Beginning in October 2005, a surcharge went into effect to begin amortizing the memorandum account over a 20 -year period. Aerojet also agreed to reimburse GSWC $17.5 million , plus interest accruing from January 1, 2004, for GSWC’s past legal and expert costs, which is included in the Aerojet litigation memorandum account. The reimbursement of the $17.5 million is contingent upon the issuance of land use approvals for development in a defined area within Aerojet property in Eastern Sacramento County and the receipt of certain fees in connection with such development. It is management’s intention to offset any proceeds from the housing development by Aerojet in this area against the balance in this litigation memorandum account. At this time, management believes the full balance of the Aerojet litigation memorandum account will be collected either from customers or Aerojet. Pensions and Other Postretirement Obligations : A regulatory asset has been recorded at December 31, 2016 and 2015 for the costs that would otherwise be charged to “other comprehensive income” within shareholders’ equity for the underfunded status of Registrant’s pension and other postretirement benefit plans because the cost of these plans has historically been recovered through rates. As discussed in Note 11, as of December 31, 2016 , Registrant’s underfunded position for these plans that have been recorded as a regulatory asset totaled $26.8 million . Registrant expects this regulatory asset to be recovered through rates in future periods. Previous CPUC decisions in the water and electric general rate cases have authorized GSWC to continue using a two-way balancing account to track differences between the forecasted annual pension expenses adopted in rates and the actual annual expense to be recorded by GSWC in accordance with the accounting guidance for pension costs. The two-way balancing accounts bear interest at the current 90 -day commercial paper rate. As of December 31, 2016 , GSWC has a net $1.3 million under-collection in the two-way pension balancing accounts, consisting of a $1.9 million under-collection related to the general office and water regions, and a $617,000 over-collection related to BVES. Low Income Balancing Accounts : This regulatory asset reflects primarily the costs of implementing and administering the California Alternate Rates for Water program in GSWC’s water regions and the California Alternate Rate for Energy program in GSWC’s BVES division. These programs mandated by the CPUC provide a discount of a fixed dollar amount which is intended to represent a 15% discount based on a typical customer bill for qualified low-income water customers and 20% for qualified low-income electric customers. GSWC accrues interest on its low income balancing accounts at the prevailing rate for 90 -day commercial paper. As of December 31, 2016 , there is an aggregate $8.3 million under-collection in the low income balancing accounts. Surcharges have been implemented to recover the costs included in these balancing accounts. General Rate Case Memorandum Accounts : The balance in the general rate case memorandum accounts represents the revenue differences between interim rates and final rates authorized by the CPUC due to delays in receiving decisions on various general rate case applications. As of December 31, 2016 , there is a net aggregate $13.9 million under-collection in these accounts, including the $9.5 million revenue difference between interim rates and final rates authorized by the CPUC in the December 2016 decision. The remainder of the balance relates to rate differences resulting from prior GRC delays. As part of the CPUC's December 2016 decision, GSWC has been authorized to implement 12 - 24 month surcharges to collect the $13.9 million balance. Other Regulatory Assets: Other regulatory assets represent costs incurred by GSWC for which it has received or expects to receive rate recovery in the future. These regulatory assets are supported by regulatory rules and decisions, past practices, and other facts or circumstances that indicate recovery is probable. Other Regulatory Matters: Procurement Audits: In December 2011, the CPUC issued a final decision adopting a settlement between GSWC and the CPUC on its investigation of certain work orders and charges paid to a specific contractor. As part of the settlement reached with the CPUC on this matter, GSWC agreed to be subject to three separate independent audits of its procurement practices over a period of 10 years from the date the settlement was approved by the CPUC. The audits cover GSWC’s procurement practices for contracts with other contractors from 1994 forward. The first audit started in 2014 and covered the period from January 1, 1994 through September 30, 2013. In March 2015, the accounting firm engaged by the CPUC to conduct the first independent audit issued its final report to the CPUC’s Division of Water and Audits (“DWA”). The final report, which was issued on a confidential basis, included GSWC's responses to the accounting firm’s findings, as well as the firm’s responses to GSWC's comments. DWA informed GSWC that it does not intend to pursue further investigation, refunds, or penalties in respect of past procurement activities as a result of the final report. In its decision issued in December 2016 on GSWC's water GRC, the CPUC did not propose any further action related to the first independent audit report. Renewables Portfolio Standard: BVES is subject to the renewables portfolio standard (“RPS”) law, which requires meeting certain targets of purchases of energy from renewable energy resources. In December 2012, GSWC entered into a ten-year agreement with a third party to purchase renewable energy credits (“RECs”) whereby GSWC agreed to purchase approximately 582,000 RECs over a 10 -year period, which would be used towards meeting the CPUC’s RPS procurement requirements. As of December 31, 2016 , GSWC believes it has purchased sufficient RECs to be in compliance for all periods through 2016. Accordingly, no provision for loss or potential penalties has been recorded in the financial statements as of December 31, 2016 . GSWC intends to file its 2016 compliance report with the CPUC by the August 2017 deadline. The cost of these RECs has been included as part of the electric supply cost balancing account as of December 31, 2016 . In October 2015, the governor of California signed a bill into law requiring, among other things, electric utilities to generate half of their electricity from renewable energy sources by 2030. The new requirement is in addition to the existing requirement for electric utilities to generate one third of their electricity from renewable sources by 2020. BVES is currently assessing various renewable energy opportunities to be in compliance with these requirements. Formal Complaint Filed at the CPUC: In June 2016, a third party filed a formal complaint with the CPUC against GSWC in connection with a water main break that occurred in 2014. The water main break caused damage to a commercial building. Repairs to the building have been delayed for a variety of reasons, including a dispute and litigation between two of GSWC's insurance carriers regarding their respective coverage obligations, as well as questions as to the nature and extent of the building’s damage and the costs associated therewith. The complaint filed with the CPUC requests, among other things, that the CPUC investigate the main break, the damage to the commercial building, and the delay of its repairs, and the complaint asks the CPUC to order GSWC to immediately complete repairs. GSWC believes it has reasonable defenses to the complaint filed with the CPUC. In July 2016, GSWC filed an answer to the formal complaint with the CPUC as well as a motion to dismiss the complaint. Previously, the owners of the commercial building filed suit in Ventura County Superior Court against GSWC for damages to the building. The trial of this lawsuit is expected to begin during the first half of 2017. At this time, GSWC believes it has sufficient insurance coverage to cover any judgment entered in the civil suit pending in Superior Court. However, GSWC cannot predict the outcome of the Superior Court litigation, the dispute and litigation between its insurers, or the CPUC proceeding. |
Utility Plant and Intangible As
Utility Plant and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Utility Plant and Intangible Assets | |
Utility Plant and Intangible Assets | Utility Plant and Intangible Assets The following table shows Registrant’s utility plant by major asset class: AWR GSWC December 31, (dollars in thousands) 2016 2015 2016 2015 Water Land $ 15,393 $ 15,299 $ 15,393 $ 15,299 Intangible assets 36,291 34,848 36,273 34,830 Source of water supply 86,775 86,914 86,775 86,914 Pumping 169,983 161,668 169,983 161,668 Water treatment 74,980 72,238 74,980 72,238 Transmission and distribution 1,014,925 941,651 1,014,925 941,651 General 127,969 126,438 116,090 115,424 1,526,316 1,439,056 1,514,419 1,428,024 Electric Transmission and distribution 71,112 66,121 71,112 66,121 Generation 12,583 12,563 12,583 12,563 General (1) 10,314 9,797 10,314 9,797 94,009 88,481 94,009 88,481 Less — accumulated depreciation (532,753 ) (529,698 ) (524,927 ) (522,749 ) Construction work in progress 63,354 62,955 61,810 62,360 Net utility plant $ 1,150,926 $ 1,060,794 $ 1,145,311 $ 1,056,116 (1) Includes intangible assets of $1.2 million for the years ended December 31, 2016 and 2015 for studies performed in association with the electricity segment of the Registrant’s operations. As of December 31, 2016 and 2015 , intangible assets consist of the following: Weighted Average Amortization AWR December 31, GSWC December 31, (dollars in thousands) Period 2016 2015 2016 2015 Intangible assets : Conservation programs 3 years $ 9,496 $ 9,496 $ 9,496 $ 9,496 Water and service rights (2) 30 years 8,695 8,695 8,124 8,124 Water planning studies 14 years 19,487 18,044 19,487 18,044 Total intangible assets 37,678 36,235 37,107 35,664 Less — accumulated amortization (28,108 ) (26,291 ) (28,001 ) (26,196 ) Intangible assets, net of amortization $ 9,570 $ 9,944 $ 9,106 $ 9,468 Intangible assets not subject to amortization (3) $ 427 $ 427 $ 409 $ 409 (2) Includes intangible assets of $571,000 for contracted services included in "Other Property and Investments" on the consolidated balance sheets as of December 31, 2016 and 2015 . (3) The intangible assets not subject to amortization primarily consist of organization and consent fees. For the years ended December 31, 2016 , 2015 and 2014 , amortization of intangible assets was $1.9 million , $1.8 million and $1.9 million , respectively, for AWR and GSWC. Estimated future consolidated amortization expenses related to intangible assets for the succeeding five years are (in thousands): Amortization Expense 2017 $ 1,922 2018 1,922 2019 1,737 2020 1,609 2021 1,485 Total $ 8,675 There is no material difference between the consolidated operations of AWR and the operations of GSWC in regards to the future amortization expense of intangible assets. Asset Retirement Obligations : The following is a reconciliation of the beginning and ending aggregate carrying amount of asset retirement obligations, which are included in “Other Credits” on the balance sheets as of December 31, 2016 and 2015 : (dollars in thousands) GSWC Obligation at December 31, 2014 $ 3,234 Additional liabilities incurred 7 Accretion 209 Revision of previous estimates 707 Obligation at December 31, 2015 $ 4,157 Additional liabilities incurred 121 Liabilities settled (112 ) Accretion 227 Obligation at December 31, 2016 $ 4,393 Registrant follows the accounting guidance for asset retirement obligations. Because retirement costs have historically been recovered through rates at the time of retirement, upon implementing this guidance, the cumulative effect of the adoption of the authoritative guidance was reflected as a regulatory asset. |
Schedule of Public Utility Property Plant and Equipment Components [Table Text Block] | The following table shows Registrant’s utility plant by major asset class: AWR GSWC December 31, (dollars in thousands) 2016 2015 2016 2015 Water Land $ 15,393 $ 15,299 $ 15,393 $ 15,299 Intangible assets 36,291 34,848 36,273 34,830 Source of water supply 86,775 86,914 86,775 86,914 Pumping 169,983 161,668 169,983 161,668 Water treatment 74,980 72,238 74,980 72,238 Transmission and distribution 1,014,925 941,651 1,014,925 941,651 General 127,969 126,438 116,090 115,424 1,526,316 1,439,056 1,514,419 1,428,024 Electric Transmission and distribution 71,112 66,121 71,112 66,121 Generation 12,583 12,563 12,583 12,563 General (1) 10,314 9,797 10,314 9,797 94,009 88,481 94,009 88,481 Less — accumulated depreciation (532,753 ) (529,698 ) (524,927 ) (522,749 ) Construction work in progress 63,354 62,955 61,810 62,360 Net utility plant $ 1,150,926 $ 1,060,794 $ 1,145,311 $ 1,056,116 (1) Includes intangible assets of $1.2 million for the years ended December 31, 2016 and 2015 for studies performed in association with the electricity segment of the Registrant’s operations. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments BVES purchases power under long-term contracts at a fixed cost depending on the amount of power and the period during which the power is purchased under such contracts. In December 2014, the CPUC approved an application that allowed BVES to immediately execute new long-term purchased power contracts with energy providers on December 9, 2014. BVES began taking power under these long-term contracts effective January 1, 2015 at a fixed cost over three and five year terms depending on the amount of power and period during which the power is purchased under the contracts. The long-term contracts executed in December 2014 are subject to the accounting guidance for derivatives and require mark-to-market derivative accounting. Among other things, the CPUC also authorized GSWC to establish a regulatory asset and liability memorandum account to offset the mark-to-market entries required by the accounting guidance. Accordingly, all unrealized gains and losses generated from the purchased power contracts executed in December 2014 are deferred on a monthly basis into a non-interest bearing regulatory memorandum account that tracks the changes in fair value of the derivative throughout the term of the contract. As a result, these unrealized gains and losses do not impact GSWC’s earnings. As of December 31, 2016 , there was a $4.9 million unrealized loss in the memorandum account, with a corresponding unrealized loss liability for the purchased power contracts as a result of a drop in energy prices. The notional volume of derivatives remaining under these long-term contracts as of December 31, 2016 was approximately 352,000 megawatt hours. As previously discussed in Note 1, the accounting guidance for fair value measurements establishes a framework for measuring fair value and requires fair value measurements to be classified and disclosed in one of three levels. Registrant’s valuation model utilizes various inputs that include quoted market prices for energy over the duration of the contract. The market prices used to determine the fair value for this derivative instrument were estimated based on independent sources such as broker quotes and publications that are not observable in or corroborated by the market. Registrant received one broker quote to determine the fair value of its derivative instrument. When such inputs have a significant impact on the measurement of fair value, the instrument is categorized in Level 3. Accordingly, the valuation of the derivative on Registrant’s purchased power contract has been classified as Level 3 for all periods presented. The following table presents changes in the fair value of GSWC’s derivatives for the years ended December 31, 2016 and 2015 : (dollars in thousands) 2016 2015 Balance, at beginning of the period $ (7,053 ) $ (3,339 ) Unrealized gain (loss) on purchased power contracts 2,152 (3,714 ) Balance, at end of the period $ (4,901 ) $ (7,053 ) |
Military Privatization
Military Privatization | 12 Months Ended |
Dec. 31, 2016 | |
Military Privatization | |
Military Privatization | Military Privatization Each of the Military Utility Privatization Subsidiaries have entered into a service contract with the U.S. government to operate and maintain, as well as perform construction activities to renew and replace, the water and/or wastewater systems at a military base or bases. The amounts charged for these services are based upon the terms of the 50 -year contract between ASUS or the Military Utility Privatization Subsidiaries and the U.S. government. Under the terms of each of these agreements, the Military Utility Privatization Subsidiaries agree to operate and maintain the water and/or wastewater systems for: (i) a monthly net fixed-price for operation and maintenance, and (ii) an amount to cover renewals and replacement capital work. In addition, these contracts may also include firm, fixed-priced initial capital upgrade projects to upgrade the existing infrastructure. Contract modifications are also issued for other necessary capital upgrades to the existing infrastructure approved by the U.S. government. Under the terms of each of these contracts, prices are to be redetermined every three years , following the first two years of the contract, or are subject to an economic price adjustment ("EPA") provision, on an annual basis. Prices may also be equitably adjusted for changes in law and other circumstances. ASUS is permitted to file, and has filed, requests for equitable adjustment ("REA"). Each of the contracts may be subject to termination, in whole or in part, prior to the end of the 50 -year term for convenience of the U.S. government or as a result of default or nonperformance by the Military Utility Privatization Subsidiaries. In July 2016, ASUS was awarded a 50-year contract by the U.S. government to operate, maintain, and provide construction management services for the water and wastewater systems at Eglin Air Force Base located in Florida. The contract is subject to annual economic price adjustments. ASUS is expected to begin operations at Eglin Air Force Base under its ECUS subsidiary in the spring of 2017. ASUS has experienced delays in redetermining prices as required by the terms of these 50 -year contracts. Interim rate increases have, at times, been implemented pending the outcome of these price redeterminations. Because of the delays, price redeterminations, when finally approved, can be retrospective and prospective. During 2016, the U.S. government approved various price redeterminations and/or economic price adjustments at four of the bases served. ASUS received approval from the U.S. government for these price redeterminations and/or economic price adjustments, which, in some cases, included retroactive operation and maintenance management fees for prior periods. In December 2016, ASUS recorded approximately $421,000 in retroactive operation and maintenance management fees and pretax operating income related to periods prior to 2016. During the third quarter of 2015, the U.S. government approved various price redeterminations, as well as asset transfers, which included retroactive operation and maintenance management fees for prior periods. As such, ASUS recorded approximately $3.0 million of retroactive revenues and pretax operating income during 2015 in connection with these contract modifications related to periods prior to 2015. Costs and estimated earnings on contracts and amounts due from the U.S. government as of December 31, 2016 and 2015 are as follows: (dollars in thousands) 2016 2015 Revenues (costs and estimated earnings) recognized on contracts $ 104,830 $ 111,397 Less: Billings to date on contracts (43,161 ) (61,662 ) $ 61,669 $ 49,735 Included in the accompanying balance sheets under the following captions: Costs and estimated earnings in excess of billings on contracts $ 63,932 $ 53,499 Billings in excess of costs and estimated earnings on contracts (2,263 ) (3,764 ) $ 61,669 $ 49,735 Receivables from the U.S. government: Billed receivables from the U.S. government $ 8,467 $ 5,861 Unbilled receivables from the U.S. government (current) 6,691 1,309 Total $ 15,158 $ 7,170 |
Earnings Per Share and Capital
Earnings Per Share and Capital Stock | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Capital Stock | Earnings Per Share and Capital Stock In accordance with the accounting guidance for participating securities and earnings per share (“EPS”), Registrant uses the “two-class” method of computing EPS. The “two-class” method is an earnings allocation formula that determines EPS for each class of common stock and participating security. AWR has participating securities related to restricted stock units that earn dividend equivalents on an equal basis with AWR’s Common Shares that have been issued under AWR’s 2000, 2008 and 2016 employee plans, and the 2003 and 2013 directors' plans. In applying the “two-class” method, undistributed earnings are allocated to both common shares and participating securities. The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating basic net income per share: Basic: For The Years Ended December 31, (in thousands, except per share amounts) 2016 2015 2014 Net income $ 59,743 $ 60,484 $ 61,058 Less: (a) Distributed earnings to common shareholders 33,408 32,690 32,125 Distributed earnings to participating securities 187 207 177 Undistributed earnings 26,148 27,587 28,756 (b) Undistributed earnings allocated to common shareholders 26,003 27,414 28,599 Undistributed earnings allocated to participating securities 145 173 157 Total income available to common shareholders, basic (a)+(b) $ 59,411 $ 60,104 $ 60,724 Weighted average Common Shares outstanding, basic 36,552 37,389 38,658 Basic earnings per Common Share $ 1.63 $ 1.61 $ 1.57 Diluted EPS is based upon the weighted average number of Common Shares, including both outstanding shares and shares potentially issuable in connection with stock options and restricted stock units granted under AWR’s 2000, 2008 and 2016 employee plans, and the 2003 and 2013 directors' plans, and net income. At December 31, 2016 , there were 136,560 stock options outstanding under these plans. At December 31, 2016 , there were also 209,932 restricted stock units outstanding including performance shares awarded to officers of the Registrant. The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating diluted net income per share: Diluted: For The Years Ended December 31, (in thousands, except per share amounts) 2016 2015 2014 Common shareholders earnings, basic $ 59,411 $ 60,104 $ 60,724 Undistributed earnings for dilutive stock options and restricted stock units 145 173 157 Total common shareholders earnings, diluted $ 59,556 $ 60,277 $ 60,881 Weighted average Common Shares outstanding, basic 36,552 37,389 38,658 Stock-based compensation (1) 198 225 222 Weighted average Common Shares outstanding, diluted 36,750 37,614 38,880 Diluted earnings per Common Share $ 1.62 $ 1.60 $ 1.57 (1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 136,560 stock options and 209,932 restricted stock units, including performance awards, at December 31, 2016 were deemed to be outstanding in accordance with accounting guidance on earnings per share. During the years ended December 31, 2016 , 2015 and 2014 , AWR issued Common Shares totaling 56,900 , 53,612 and 74,145 , respectively, under AWR’s Common Share Purchase and Dividend Reinvestment Plan (“DRP”), the 2000, 2008 and 2016 employee plans, and the 2003 and 2013 directors' plans. As of December 31, 2016 , there are 1,055,948 and 387,300 Common Shares authorized for issuance directly by AWR but unissued under the DRP and the 401(k) Plan, respectively. Shares reserved for the 401(k) Plan are in relation to AWR’s matching contributions and investment by participants. In addition, during the years ended December 31, 2016 , 2015 and 2014 , AWR issued 12,546 , 66,458 and 37,006 Common Shares for approximately $235,000 , $1,198,000 and $589,000 , respectively, as a result of the exercise of stock options. During 2016 , 2015 and 2014 , no cash proceeds received by AWR as a result of the exercise of stock options were distributed to any subsidiaries of AWR. In 2014 and 2015, AWR's Board of Directors approved two stock repurchase programs, authorizing AWR to repurchase up to 2.45 million shares of its Common Shares. Both programs were completed during 2015. Under these programs, Registrant repurchased 1,905,000 and 545,000 Common Shares on the open market during 2015 and 2014, respectively. GSWC’s outstanding Common Shares are owned entirely by its parent, AWR. To the extent GSWC does not reimburse AWR for stock-based compensation awarded under various stock compensation plans, such amounts increase the value of GSWC’s common shareholder’s equity. |
Dividend Limitations
Dividend Limitations | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Dividend Limitations | Dividend Limitations GSWC is subject to contractual restrictions on its ability to pay dividends. GSWC’s maximum ability to pay dividends is restricted by certain Note Agreements to the sum of $21.0 million plus 100% of consolidated net income from various dates plus the aggregate net cash proceeds received from capital stock offerings or other instruments convertible into capital stock from various dates. Under the most restrictive of the Note Agreements, $374.8 million was available to pay dividends to AWR as of December 31, 2016 . GSWC is also prohibited from paying dividends if, after giving effect to the dividend, its total indebtedness to capitalization ratio (as defined) would be more than 0.6667 -to-1. Dividends in the amount of $25.5 million , $62.0 million and $52.0 million were paid to AWR by GSWC during the years ended December 31, 2016 , 2015 and 2014 , respectively. The ability of AWR, ASUS and GSWC to pay dividends is also restricted by California law. Under California law, AWR, GSWC and ASUS are each permitted to distribute dividends to its shareholders so long as the Board of Directors determines, in good faith, that either: (i) the value of the corporation’s assets equals or exceeds the sum of its total liabilities immediately after the dividend, or (ii) its retained earnings equals or exceeds the amount of the distribution. Under the least restrictive of the California tests, approximately $247.1 million was available to pay dividends to AWR’s shareholders at December 31, 2016 . Approximately $206.3 million was available for GSWC to pay dividends to AWR at December 31, 2016 . Approximately $57.2 million was available for ASUS to pay dividends to AWR as of December 31, 2016 to the extent that the subsidiaries of ASUS are able to pay dividends in that amount to ASUS under applicable state laws. |
Bank Debt
Bank Debt | 12 Months Ended |
Dec. 31, 2016 | |
Bank Debt | |
Bank Debt | Bank Debt AWR has access to a syndicated credit facility, which expires in May 2018. In October 2016, AWR elected to increase the aggregate commitment as permitted under the terms of the facility agreement from $100.0 million to $ 150.0 million . The aggregate effective amount that may be outstanding under letters of credit is $25.0 million . AWR has obtained letters of credit, primarily for GSWC, in the aggregate amount of $9.9 million , with fees of 0.65% including: (i) a $5.4 million letter of credit representing a percentage of the outstanding American Recovery and Reinvestment Act (“ARRA”) funds received by GSWC for reimbursement of capital costs related to the installation of meters in GSWC’s Arden-Cordova water system, (ii) letters of credit in an aggregate amount of $340,000 as security for GSWC’s business automobile insurance policy, (iii) a letter of credit, in an amount of $585,000 as security for the purchase of power, (iv) a $15,000 irrevocable letter of credit pursuant to a franchise agreement with the City of Rancho Cordova, and (v) an irrevocable letter of credit in the amount of $3.6 million , pursuant to a settlement agreement with Southern California Edison Company to cover GSWC’s commitment to pay the settlement amount. Letters of credit outstanding reduce the amount that may be borrowed under the revolving credit facility. There were no compensating balances required. Loans can be obtained at the option of AWR and bear interest at rates based on credit ratings and Euro rate margins. In April 2016, Standard & Poor's Rating Services ("S&P") affirmed the A+ credit rating and stable outlook on both AWR and GSWC. S&P's debt ratings range from AAA (highest rating possible) to D (obligation is in default). In December 2016, Moody's Investors Service ("Moody's") affirmed its A2 rating with a stable outlook for GSWC. At December 31, 2016 , there was $90.0 million outstanding under this facility. At times, AWR borrows under this facility and provides loans to its subsidiaries in support of their operations, on terms that are similar to that of the credit facility. AWR’s short-term borrowing activities (excluding letters of credit) for the years ending December 31, 2016 and 2015 were as follows: December 31, (in thousands, except percent) 2016 2015 Balance Outstanding at December 31, $ 90,000 $ 28,000 Interest Rate at December 31, 1.46 % 1.09 % Average Amount Outstanding $ 59,261 $ 4,112 Weighted Average Annual Interest Rate 1.20 % 0.92 % Maximum Amount Outstanding $ 96,000 $ 37,000 All of the letters of credit are issued pursuant to the syndicated revolving credit facility. The syndicated revolving credit facility contains restrictions on prepayments, disposition of property, mergers, liens and negative pledges, indebtedness and guaranty obligations, transactions with affiliates, minimum interest coverage requirements, a maximum debt to capitalization ratio and a minimum debt rating. Pursuant to the credit agreement, AWR must maintain a minimum interest coverage ratio of 3.25 times interest expense, a maximum total funded debt ratio of 0.65 to 1.00 and a minimum Moody’s Investor Service or S&P debt rating of Baa3 or BBB-, respectively. As of December 31, 2016 , 2015 and 2014 , AWR was in compliance with these requirements. As of December 31, 2016 , AWR had an interest coverage ratio of 7.07 times interest expense, a debt ratio of 0.46 to 1.00 and a debt rating of A+ by S&P. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Registrant’s long-term debt consists primarily of notes and debentures of GSWC. Registrant summarizes its long-term debt in the Statements of Capitalization. GSWC does not currently have any outstanding mortgages or other encumbrances on its properties. GSWC’s leases and other similar financial arrangements are not material. Each of the private placement notes issued by GSWC contain various restrictions. Private placement notes issued in the amount of $28 million due in 2031 contain restrictions on the payment of dividends, minimum interest coverage requirements, a maximum total indebtedness to capitalization ratio and a negative pledge. Pursuant to the terms of these notes, GSWC must maintain a minimum interest coverage ratio of two times interest expense. As of December 31, 2016 , GSWC had an interest coverage ratio of over four times interest expense. Other private placement notes issued by GSWC have similar requirements related to the maintenance of a total indebtedness to capitalization ratio, as discussed below. In December 2014, GSWC issued $15.0 million in 3.45% private placement senior notes due in 2029. In 2005 and 2009, GSWC issued two senior private placement notes to CoBank, ACB ("CoBank") due in 2028 and 2019, respectively. Pursuant to the terms of these three notes, GSWC must maintain a total indebtedness to capitalization ratio (as defined) of less than 0.6667 -to-1 and a total indebtedness to earnings before income taxes, depreciation and amortization (EBITDA) of less than 8 -to-1. As of December 31, 2016 , GSWC had a total indebtedness to capitalization ratio of 0.4680 -to-1 and a total indebtedness to EBITDA of 2.9 -to-1. Certain long-term debt issues outstanding as of December 31, 2016 can be redeemed, in whole or in part, at the option of GSWC subject to redemption schedules embedded in the agreements particular to each redeemable issue. With the exception of the 9.56% notes and the two senior notes issued to Co-Bank, as of December 31, 2016 , the redemption premiums in effect are now zero . The 9.56% notes are subject to a make-whole premium based on 55 basis points above the applicable Treasury Yield if redeemed prior to 2021. After 2021, the maximum redemption premium is 3% of par value. The senior notes with Co-Bank are subject to a make-whole premium based on the difference between Co-Bank’s cost of funds on the date of purchase and Co-Bank’s cost of funds on the date of redemption, plus 0.5% . The $15.0 million, 3.45% senior notes due in 2029 have similar redemption premiums. In October 2009, GSWC entered into an agreement with the California Department of Health (“CDPH”) whereby CDPH agreed to provide funds to GSWC of up to $9.0 million under the American Recovery and Reinvestment Act. Proceeds from the funds received were used to reimburse GSWC for capital costs incurred to install water meters to convert customers in GSWC’s Arden-Cordova district from non-metered service to metered service. GSWC received a total of $8.6 million in reimbursements from the CDPH, half of which was recorded as a contribution in aid of construction and the other half as long-term debt in accordance with the terms of the agreement. The loan portion bears interest at a rate of 2.5% and is payable over 20 years beginning in 2013. A surcharge to recover from customers the debt service cost on this loan was approved by the CPUC and implemented in 2013. Pursuant to the agreement, GSWC also issued letters of credit to CDPH equal to 80% of the amount loaned to GSWC. As of December 31, 2016 , GSWC has a total of $5.4 million in letters of credit issued to CDPH. Annual maturities of all long-term debt, including capitalized leases, at December 31, 2016 are as follows (in thousands): Maturity as of December 31, 2017 $ 330 2018 325 2019 40,322 2020 346 2021 365 Thereafter 283,894 Total $ 325,582 |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income Registrant provides deferred income taxes for temporary differences under the accounting guidance for income taxes for certain transactions which are recognized for income tax purposes in a period different from that in which they are reported in the financial statements. The most significant items are the tax effects of differences in asset basis (including accelerated depreciation and capitalization methods), certain regulatory balancing accounts and advances for, and contributions in aid of, construction. The accounting guidance for income taxes also requires that rate-regulated enterprises record deferred income taxes for temporary differences given flow-through treatment at the direction of a regulatory commission. The resulting deferred tax assets and liabilities are recorded at the expected cash flow to be reflected in future rates. Given that the CPUC has consistently permitted the recovery of flowed-through tax effects, GSWC has established regulatory liabilities and assets offsetting such deferred tax assets and liabilities (Note 2). Deferred investment tax credits (“ITC”) are amortized ratably to deferred tax expense over the lives of the property giving rise to the credits. GSWC is included in AWR’s consolidated federal income tax and combined California state franchise tax returns. California unitary apportionment provides a benefit or detriment to AWR’s state taxes, depending on a combination of the profitability of AWR’s non-California activities as well as the proportion of its California sales to total sales. Consistent with the method adopted for regulatory purposes, GSWC’s tax expense is computed as if GSWC were autonomous and files separate returns. Given that all of GSWC’s activities are conducted within California, GSWC’s state tax expense does not reflect apportionment of its income. As a regulated utility, GSWC treats certain temporary differences as flow-through adjustments in computing its income tax provision consistent with the income tax approach approved by the CPUC for ratemaking purposes. Flow-through adjustments increase or decrease tax expense in one period, with an offsetting decrease or increase occurring in another period. Giving effect to these temporary differences as flow-through adjustments typically results in a greater variance between the effective tax rate (“ETR”) and the statutory federal income tax rate in any given period than would otherwise exist if GSWC were not required to account for its income taxes as a regulated enterprise. The GSWC ETRs deviate from the statutory rate primarily due to state taxes and differences between book and taxable income that are treated as flow-through adjustments in accordance with regulatory requirements (principally plant-, rate-case- and compensation-related items). The ETRs at the AWR consolidated level also fluctuate as a result of ASUS's state income taxes, which vary among the jurisdictions in which it operates, and certain permanent differences. Changes in Tax Law: In December 2015, the Protecting Americans From Tax Hikes Act of 2015 extended bonus depreciation for qualifying property through 2019. For 2015 through 2017, bonus depreciation was extended at a 50% rate. For 2018-2019, bonus depreciation will be phased down to 40% and 30%, respectively. Although the change in law reduces AWR’s current taxes payable over these years, it does not reduce its total income tax expense or ETR. The significant components of the deferred tax assets and liabilities as reflected in the balance sheets at December 31, 2016 and 2015 are: AWR GSWC December 31, December 31, (dollars in thousands) 2016 2015 2016 2015 Deferred tax assets: Regulatory-liability-related: ITC $ 903 $ 952 $ 903 $ 952 Regulatory-liability-related: California Corp Franchise Tax 3,365 4,530 3,365 4,530 Other non-property-related 1,993 2,486 1,901 1,997 Contributions and advances 7,464 8,026 7,712 8,026 $ 13,725 $ 15,994 $ 13,881 $ 15,505 Deferred tax liabilities: Fixed assets $ (200,378 ) $ (178,004 ) $ (203,133 ) $ (179,660 ) Regulatory-asset-related: depreciation and other (24,402 ) (21,658 ) (24,402 ) (21,658 ) California Corp Franchise Tax (2,033 ) (2,440 ) (2,208 ) (3,051 ) Other property-related — (66 ) (68 ) (65 ) Balancing and memorandum accounts (7,010 ) (1,824 ) (7,271 ) (1,824 ) Deferred charges (4,429 ) (4,849 ) (4,597 ) (4,905 ) (238,252 ) (208,841 ) (241,679 ) (211,163 ) Accumulated deferred income taxes - net $ (224,527 ) $ (192,847 ) $ (227,798 ) $ (195,658 ) The current and deferred components of income tax expense are as follows: AWR Year Ended December 31, (dollars in thousands) 2016 2015 2014 Current Federal $ 2,297 $ 21,866 $ 5,595 State 4,798 5,442 137 Total current tax expense $ 7,095 $ 27,308 $ 5,732 Deferred Federal $ 26,715 $ 8,948 $ 24,815 State 925 1,475 7,501 Total deferred tax expense 27,640 10,423 32,316 Total income tax expense $ 34,735 $ 37,731 $ 38,048 GSWC Year Ended December 31, (dollars in thousands) 2016 2015 2014 Current Federal $ (3,115 ) $ 16,196 $ 408 State 3,625 5,557 (2,754 ) Total current tax expense $ 510 $ 21,753 $ (2,346 ) Deferred Federal $ 25,864 $ 8,536 $ 24,373 State 2,235 2,183 9,979 Total deferred tax expense 28,099 10,719 34,352 Total income tax expense $ 28,609 $ 32,472 $ 32,006 The reconciliations of the effective tax rates to the federal statutory rate are as follows: AWR Year Ended December 31, (dollars in thousands, except percent) 2016 2015 2014 Federal taxes on pretax income at statutory rate $ 33,067 $ 34,375 $ 34,687 Increase (decrease) in taxes resulting from: State income tax, net of federal benefit 3,029 4,843 4,781 Flow-through on fixed assets 994 626 651 Flow-through on pension costs (247 ) 267 (507 ) Flow-through on removal costs (2,068 ) (929 ) (1,571 ) Domestic production activities deduction (78 ) (1,560 ) (643 ) Investment tax credit (83 ) (88 ) (91 ) Other – net 121 197 741 Total income tax expense from operations $ 34,735 $ 37,731 $ 38,048 Pretax income from operations $ 94,478 $ 98,215 $ 99,106 Effective income tax rate 36.8 % 38.4 % 38.4 % GSWC Year Ended December 31, (dollars in thousands, except percent) 2016 2015 2014 Federal taxes on pretax income at statutory rate $ 26,452 $ 28,022 $ 27,952 Increase (decrease) in taxes resulting from: State income tax, net of federal benefit 3,118 5,151 4,693 Flow-through on fixed assets 994 626 651 Flow-through on pension costs (247 ) 267 (507 ) Flow-through on removal costs (2,068 ) (929 ) (1,571 ) Domestic production activities deduction — (1,268 ) (55 ) Investment tax credit (82 ) (88 ) (91 ) Other – net 442 691 934 Total income tax expense from operations $ 28,609 $ 32,472 $ 32,006 Pretax income from operations $ 75,578 $ 80,063 $ 79,863 Effective income tax rate 37.9 % 40.6 % 40.1 % AWR and GSWC had no unrecognized tax benefits at December 31, 2016 , 2015 and 2014 . Registrant’s policy is to classify interest on income tax over/underpayments in interest income/expense and penalties in “other operating expenses.” At December 31, 2016 , 2015 and 2014 , AWR included $461,000 , $504,000 and $504,000 , respectively, of net interest receivables from taxing authorities in other current and noncurrent assets. AWR recognized no interest income or expense during the year ended December 31, 2015 , and recognized $8,000 and $19,000 of interest income during the years ended December 31, 2016 and 2014 , respectively. At December 31, 2016 , 2015 and 2014 , GSWC included $499,000 , $512,000 and $472,000 , respectively, of net interest receivables from taxing authorities in other current and noncurrent assets. GSWC recognized $3,000 of interest expense during the year ended December 31, 2015 , and $7,000 and $14,000 of interest income from taxing authorities during the years ended December 31, 2016 and 2014 , respectively. At December 31, 2016 , 2015 and 2014 , Registrant had no significant accruals for income-tax-related penalties and had no significant income-tax-related penalties recognized during the years ended December 31, 2016 , 2015 and 2014 . Registrant files federal and various state income tax returns. AWR’s federal 2010 through 2012 refund claims were examined during 2015, and the Internal Revenue Service (“IRS”) completed its examination of them in February 2016. Its 2013-2015 tax years remain subject to examination by the IRS. AWR has filed protective refund claims with the applicable state taxing authority for the 2002 through 2008 tax years in connection with the matters on the federal claims for these years and other state tax matters. During 2012, the California Franchise Tax Board commenced examining these claims. The 2009-2015 tax years remain subject to examination by state taxing authorities. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Pension and Post-Retirement Medical Plans : Registrant maintains a defined benefit pension plan (the “Pension Plan”) that provides eligible employees (those aged 21 and older, hired before January 1, 2011) monthly benefits upon retirement based on average salaries and length of service. The eligibility requirement to begin receiving these benefits is 5 years of vested service. The normal retirement benefit is equal to 2% of the five highest consecutive years’ average earnings multiplied by the number of years of credited service, up to a maximum of 40 , reduced by a percentage of primary social security benefits. There is also an early retirement option. Annual contributions are made to the Pension Plan, which comply with the funding requirements of the Employee Retirement Income Security Act (“ERISA”). At December 31, 2016 , Registrant had 957 participants in the Pension Plan. In January 2011, the Board of Directors approved an amendment to the Pension Plan, closing the plan to employees hired after December 31, 2010. Employees hired or rehired after December 31, 2010 are eligible to participate in a defined contribution plan. Registrant's existing 401(k) Investment Incentive Program was amended to include this defined contribution plan. Under this plan, Registrant provides a contribution of 5.25% of eligible pay each pay period into investment vehicles offered by the plan’s trustee. Participants will be fully vested in this plan once the employee attains three years of service. Employees hired before January 1, 2011 continue to participate in and accrue benefits under the terms of the Pension Plan. Registrant also provides post-retirement medical benefits for all active employees hired before February of 1995, through a medical insurance plan. Eligible employees, who retire prior to age 65, and/or their spouses, are able to retain the benefits under the plan for active employees until reaching age 65. Eligible employees upon reaching age 65, and those eligible employees retiring at or after age 65, and/or their spouses, receive coverage through a Medicare supplement insurance policy paid for by Registrant subject to an annual cap limit. Registrant’s post-retirement medical plan does not provide prescription drug benefits to Medicare-eligible employees and is not affected by the Medicare Prescription Drug Improvement and Modernization Act of 2003. In accordance with the accounting guidance for the effects of certain types of regulation, Registrant has established a regulatory asset for its underfunded position in its pension and post-retirement medical plans that is expected to be recovered through rates in future periods. The changes in actuarial gains and losses, prior service costs and transition assets or obligations pertaining to the regulatory asset are recognized as an adjustment to the regulatory asset account as these amounts are recognized as components of net periodic pension costs each year. The following table sets forth the Pension Plan’s and post-retirement medical plan’s funded status and amounts recognized in Registrant’s balance sheets and the components of net pension cost and accrued liability at December 31, 2016 and 2015 : Pension Benefits Post-Retirement Medical Benefits (dollars in thousands) 2016 2015 2016 2015 Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 168,934 $ 185,184 $ 9,393 $ 12,326 Service cost 5,094 6,276 247 340 Interest cost 7,910 7,686 371 435 Actuarial (gain) loss 4,162 (24,413 ) (715 ) (3,375 ) Benefits/expenses paid (5,736 ) (5,799 ) (494 ) (333 ) Projected benefit obligation at end of year $ 180,364 $ 168,934 $ 8,802 $ 9,393 Changes in Plan Assets: Fair value of plan assets at beginning of year $ 142,174 $ 140,561 $ 10,614 $ 10,723 Actual return on plan assets 9,182 673 418 115 Employer contributions 5,252 6,739 — 109 Benefits/expenses paid (5,736 ) (5,799 ) (494 ) (333 ) Fair value of plan assets at end of year $ 150,872 $ 142,174 $ 10,538 $ 10,614 Funded Status: Net amount recognized as accrued pension cost $ (29,492 ) $ (26,760 ) $ 1,736 $ 1,221 Pension Benefits Post-Retirement Medical Benefits (in thousands) 2016 2015 2016 2015 Amounts recognized on the balance sheets: Non-current assets $ — $ — $ 1,736 $ 1,221 Current liabilities — — — — Non-current liabilities (29,492 ) (26,760 ) — — Net amount recognized $ (29,492 ) $ (26,760 ) $ 1,736 $ 1,221 Amounts recognized in regulatory assets consist of: Prior service cost (credit) $ — $ 49 $ — $ (34 ) Net (gain) loss 25,828 21,921 (5,515 ) (5,572 ) Regulatory assets (liabilities) 25,828 21,970 (5,515 ) (5,606 ) Unfunded accrued pension cost 3,664 4,790 3,779 4,385 Net liability (asset) recognized $ 29,492 $ 26,760 $ (1,736 ) $ (1,221 ) Changes in plan assets and benefit obligations recognized in regulatory assets: Regulatory asset at beginning of year $ 21,970 $ 39,170 $ (5,606 ) $ (3,125 ) Net loss (gain) 4,818 (15,292 ) (644 ) (2,997 ) Amortization of prior service (cost) credit (49 ) (118 ) 34 200 Amortization of net gain (loss) (911 ) (1,790 ) 701 316 Total change in regulatory asset 3,858 (17,200 ) 91 (2,481 ) Regulatory asset (liability) at end of year $ 25,828 $ 21,970 $ (5,515 ) $ (5,606 ) Net periodic pension costs $ 4,126 $ 6,075 $ (606 ) $ (234 ) Change in regulatory asset 3,858 (17,200 ) 91 (2,481 ) Total recognized in net periodic pension cost and regulatory asset (liability) $ 7,984 $ (11,125 ) $ (515 ) $ (2,715 ) Estimated amounts that will be amortized from regulatory asset over the next fiscal year: Prior service (cost) credit $ — $ (49 ) $ — $ 34 Net gain (loss) $ (835 ) $ (510 ) $ 679 $ 599 Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 180,364 $ 168,934 $ 8,802 $ 9,393 Accumulated benefit obligation $ 165,998 $ 155,469 N/A N/A Fair value of plan assets $ 150,872 $ 142,174 $ 10,538 $ 10,614 Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 4.44 % 4.65 % 3.97 % 4.25 % Rate of compensation increase * * N/A N/A * Age-graded ranging from 3.0% to 8.0% . Consistent with decisions from the CPUC and in accordance with regulatory accounting principles, Registrant capitalizes a portion of its pension and other post-retirement costs in the overhead pool included in GSWC's utility plant. The components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool, for 2016 , 2015 and 2014 are as follows: Pension Benefits Post-Retirement Medical Benefits (dollars in thousands, except percent) 2016 2015 2014 2016 2015 2014 Components of Net Periodic Benefits Cost: Service cost $ 5,094 $ 6,276 $ 5,643 $ 247 $ 340 $ 348 Interest cost 7,910 7,686 7,520 371 435 495 Expected return on plan assets (9,838 ) (9,795 ) (8,898 ) (489 ) (493 ) (453 ) Amortization of transition — — — — — 418 Amortization of prior service cost (credit) 49 118 118 (34 ) (200 ) (200 ) Amortization of actuarial (gain) loss 911 1,790 — (701 ) (316 ) (330 ) Net periodic pension cost under accounting standards $ 4,126 $ 6,075 $ 4,383 $ (606 ) $ (234 ) $ 278 Regulatory adjustment - over collection 859 523 1,622 — — — Total expense recognized, before allocation to overhead pool $ 4,985 $ 6,598 $ 6,005 $ (606 ) $ (234 ) $ 278 Weighted-average assumptions used to determine net periodic cost: Discount rate 4.65 % 4.25 % 5.10 % 4.25 % 3.80 % 4.65 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % * * * Rate of compensation increase ** 4.00 % 4.00 % N/A N/A N/A * 7.0% for union plan, 4.2% for non-union, net of income taxes in 2016 , 2015 and 2014 . ** Age-graded ranging from 3.0% to 8.0% . Regulatory Adjustment : The CPUC authorized GSWC to track differences between the forecasted annual pension expenses adopted in rates for its water regions and the general office and the actual annual expense to be recorded by GSWC in accordance with the accounting guidance for pension costs. During the years ended December 31, 2016 , 2015 , and 2014 GSWC's actual expense was lower than the amounts included in water and electric customer rates by $859,000 , $523,000 and $1.6 million , respectively. These over-collections have been recorded in the two-way pension balancing accounts included in regulatory assets. As of December 31, 2016 , the pension balancing account had a $1.3 million net under-collection included in regulatory assets. Plan Funded Status : The Pension Plan was underfunded at December 31, 2016 and 2015 . Registrant’s market related value of plan assets is equal to the fair value of plan assets. Past volatile market conditions have affected the value of GSWC’s trust established to fund its future long-term pension benefits. These benefit plan assets and related obligations are measured annually using a December 31 measurement date. Changes in the plan’s funded status will affect the assets and liabilities recorded on the balance sheet in accordance with accounting guidance on employers’ accounting for defined benefit pension and other post-retirement plans. Due to Registrant’s regulatory recovery treatment, the recognition of the funded status is offset by a regulatory asset pursuant to guidance on accounting for the effects of certain types of regulation. Plan Assets : The assets of the pension and post-retirement medical plans are managed by a third party trustee. The investment policy allocation of the assets in the trust was approved by Registrant’s Administrative Committee (the “Committee”) for the pension and post-retirement medical funds, which has oversight responsibility for all retirement plans. The primary objectives underlying the investment of the pension and post-retirement plan assets are: (i) attempt to maintain a fully funded status with a cushion for unexpected developments, possible future increases in expense levels, and/or a reduction in the expected return on investments, (ii) seek to earn long-term returns that compare favorably to appropriate market indexes, peer group universes and the policy asset allocation index, (iii) seek to provide sufficient liquidity to pay current benefits and expenses, (iv) attempt to limit risk exposure through prudent diversification, and (v) seek to limit costs of administering and managing the plans. The Committee recognizes that risk and volatility are present to some degree with all types of investments. High levels of risk may be avoided through diversification by asset class, style of each investment manager and sector and industry limits. Investment managers are retained to manage a pool of assets and allocate funds in order to achieve an appropriate, diversified and balanced asset mix. The Committee’s strategy balances the requirement to maximize returns using potentially higher return generating assets, such as equity securities, with the need to control the risk of its benefit obligations with less volatile assets, such as fixed income securities. The Committee approves the target asset allocations. Registrant’s pension and post-retirement plan weighted-average asset allocations at December 31, 2016 and 2015 , by asset category are as follows: Pension Benefits Post-Retirement Medical Benefits Asset Category 2016 2015 2016 2015 Actual Asset Allocations : Equity securities 57 % 55 % 58 % 60 % Debt securities 38 % 40 % 39 % 38 % Real Estate Funds 5 % 5 % — % — % Cash equivalents — % — % 3 % 2 % Total 100 % 100 % 100 % 100 % Equity securities did not include AWR’s Common Shares as of December 31, 2016 and 2015 . Target Asset Allocations for 2016: Pension Benefits Post-retirement Medical Benefits Equity securities 60 % 60 % Debt securities 40 % 40 % Total 100 % 100 % The Committee appointed a management firm to manage the Pension Plan assets effective February 2015. During 2015, the pension plan assets were allocated to collective trust funds managed by the management firm. The fair value of these collective trust funds are measured using net asset value per share. In accordance with ASU 2015-07 Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalents) , the fair value of the collective trust funds are not categorized in the fair value hierarchy as of December 31, 2016 . The following tables set forth the fair value, measured by net asset value, of the pension investment assets as of December 31, 2016 and 2015 : Net Asset Value as of December 31, 2016 (dollars in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Cash equivalents $ 500 — N/A N/A Fixed income fund 57,674 — Daily Daily Equity securities : U.S. small/mid cap funds 24,312 — Daily Daily U.S. large cap funds 46,175 — Daily Daily International funds 14,869 — Daily Daily Total equity funds 85,356 — Real estate funds 7,342 — Daily Daily Total $ 150,872 — Net Asset Value as of December 31, 2015 (dollars in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Cash equivalents $ 469 — N/A N/A Fixed income fund 56,218 — Daily Daily Equity securities : U.S. small/mid cap funds 21,219 — Daily Daily U.S. large cap funds 42,395 — Daily Daily International funds 14,455 — Daily Daily Total equity funds 78,069 — Real estate funds 7,418 — Daily Daily Total $ 142,174 — The collective trust funds may be invested or redeemed daily, and generally do not have any significant restrictions to redeem the investments. As previously discussed in Note 4, accounting guidance for fair value measurements establishes a framework for measuring fair value and requires fair value measurements to be classified and disclosed in one of three levels. As required by the accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. All equity investments in the post-retirement medical plan are Level 1 investments in mutual funds. The fixed income category includes corporate bonds and notes. The majority of fixed income investments range in maturities from less than one to twenty years . The fair values of these investments are based on quoted market prices in active markets. The following tables set forth by level, within the fair value hierarchy, the post-retirement plan's investment assets measured at fair value as of December 31, 2016 and 2015 : Fair Value as of December 31, 2016 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Post-Retirement Plan Assets: Cash equivalents $ 360 — — $ 360 Fixed income 4,072 — — 4,072 U.S. equity securities (large cap stocks) 6,106 — — 6,106 Total investments measured at fair value $ 10,538 — — $ 10,538 Fair Value as of December 31, 2015 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Post-Retirement Plan Assets: Cash equivalents $ 31 — — $ 31 Fixed income 4,182 — — 4,182 U.S. equity securities (large cap stocks) 6,401 — — 6,401 Total investments measured at fair value $ 10,614 — — $ 10,614 Plan Contributions : During 2016 , Registrant contributed $5.3 million to its pension plan and did not make a contribution to the post-retirement medical plan. Registrant currently expects to contribute approximately $6.2 million to its pension plan in 2017. Registrant’s policy is to fund the plans annually at a level which is deductible for income tax purposes and is consistent with amounts recovered in customer rates. Benefit Payments : Estimated future benefit payments at December 31, 2016 for the next five years and thereafter are as follows (in thousands): Pension Benefits Post-Retirement Medical Benefits 2017 $ 6,385 $ 560 2018 6,855 609 2019 7,354 633 2020 7,945 680 2021 8,542 768 Thereafter 51,307 3,719 Total $ 88,388 $ 6,969 Assumptions : Certain actuarial assumptions, such as the discount rate, long-term rate of return on plan assets, mortality, and the healthcare cost trend rate have a significant effect on the amounts reported for net periodic benefit cost as well as the related benefit obligation amounts. During 2015, Registrant updated other key assumptions used for the valuation of the pension, post-retirement medical and supplemental executive retirement plans. These updates included: (i) updates in demographic assumptions, such as retirement and termination rates, to reflect recent changes in participant behavior, and (ii) salary increases based on Registrant’s recent and future expected experience. These updates resulted in actuarial gains in the benefit obligations for the pension, post-retirement medical and supplemental executive retirement plans in 2015. Discount Rate — The assumed discount rate for pension and post-retirement medical plans reflects the market rates for high-quality corporate bonds currently available. Registrant’s discount rates were determined by considering the average of pension yield curves constructed of a large population of high quality corporate bonds. The resulting discount rate reflects the matching of plan liability cash flows to the yield curves. Expected Long-Term Rate of Return on Assets — The long-term rate of return on plan assets represents an estimate of long-term returns on an investment portfolio consisting of a mixture of equities, fixed income and other investments. To develop the expected long-term rate of return on assets assumption for the pension plan, Registrant considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. Registrant’s policy is to fund the medical benefit trusts based on actuarially determined amounts as allowed in rates approved by the CPUC. Registrant has invested the funds in the post-retirement trusts that will achieve a desired return and minimize amounts necessary to recover through rates. The mix is expected to provide for a return on assets similar to the Pension Plan and to achieve Registrant’s targeted allocation. This resulted in the selection of the 7.0% long-term rate of return on assets assumption for the union plan and 4.2% (net of income taxes) for the non-union plan portion of the post-retirement plan. Mortality — Mortality assumptions are a critical component of benefit obligation amounts and a key factor in determining the expected length of time for annuity payments. In 2014, the Society of Actuaries ("SOA") released new mortality tables for pension plans. Beginning with 2014, the benefit obligation amounts assumed a longer life expectancy of participants as a result of the actuarial update to mortality tables. In 2016, the SOA published updated mortality tables reflecting three additional years of data and refined certain parameters used in developing the 2014 tables. Accordingly, as of December 31, 2016, the benefit obligation amounts reflect updates to the 2014 mortality tables. The updates to the mortality tables, as compared to those used prior to 2014, are expected to increase future annual net periodic costs. Healthcare Cost Trend Rate — The assumed health care cost trend rate for 2017 starts at 6.7% grading down to 4.7% in 2037 for those under age 65, and at 6.3% grading down to 4.5% in 2037 for those 65 and over. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects on the post-retirement medical plan: (dollars in thousands) 1-Percentage-Point Increase 1-Percentage-Point Decrease Effect on total of service and interest cost components $ 55 $ (47 ) Effect on post-retirement benefit obligation $ 914 $ (790 ) Supplemental Executive Retirement Plan : Registrant has a supplemental executive retirement plan (“SERP”) that provides additional retirement benefits to certain key employees and officers of Registrant by making up benefits, which are limited by Sections 415 and 401(a)(17) of the Internal Revenue Code of 1986, as amended, and certain additional benefits. The Board of Directors approved the establishment of a Rabbi Trust created for the SERP. Assets in a Rabbi Trust can be subject to the claims of creditors; therefore, they are not considered as an asset for purposes of computing the SERP’s funded status. As of December 31, 2016 , the balance in the Rabbi Trust totaled $12.0 million and is included in Registrant’s other property and investments. All equity investments in the Rabbi Trust are Level 1 investments in mutual funds. The fixed income category includes corporate bonds and notes. The fair values of these investments are based on quoted market prices in active markets. The following tables set forth by level, within the fair value hierarchy, the Rabbi Trust investment assets measured at fair value as of December 31, 2016 and 2015 : Fair Value as of December 31, 2016 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Assets held in Rabbi Trust: Cash equivalents $ 46 — — $ 46 Fixed income securities 4,801 — — 4,801 Equity securities 7,149 — — 7,149 Total investments measured at fair value $ 11,996 — — $ 11,996 Fair Value as of December 31, 2015 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Assets held in Rabbi Trust: Cash equivalents $ 39 — — $ 39 Fixed income securities 3,903 — — 3,903 Equity securities 5,924 — — 5,924 Total investments measured at fair value $ 9,866 — — $ 9,866 The following provides a reconciliation of benefit obligations, funded status of the SERP, as well as a summary of significant estimates at December 31, 2016 and 2015 : (dollars in thousands) 2016 2015 Change in Benefit Obligation: Benefit obligation at beginning of year $ 16,317 $ 15,926 Service cost 799 814 Interest cost 743 653 Actuarial (gain) loss 3,341 (683 ) Benefits paid (417 ) (393 ) Benefit obligation at end of year $ 20,783 $ 16,317 Changes in Plan Assets: Fair value of plan assets at beginning of year — — Fair value of plan assets at end of year — — Funded Status: Net amount recognized as accrued cost $ (20,783 ) $ (16,317 ) The change in actuarial gain/loss in the SERP was due, in part, to a decrease in the discount rate during 2016, while the discount rate increased during 2015. (in thousands) 2016 2015 Amounts recognized on the balance sheets: Current liabilities $ (419 ) $ (411 ) Non-current liabilities (20,364 ) (15,906 ) Net amount recognized $ (20,783 ) $ (16,317 ) Amounts recognized in regulatory assets consist of: Prior service cost $ 11 $ 36 Net loss 6,463 3,416 Regulatory assets 6,474 3,452 Unfunded accrued cost 14,309 12,865 Net liability recognized $ 20,783 $ 16,317 Changes in plan assets and benefit obligations recognized in regulatory assets consist of: Regulatory asset at beginning of year $ 3,452 $ 4,683 Net (gain) loss 3,339 (683 ) Amortization of prior service credit (25 ) (117 ) Amortization of net loss (292 ) (431 ) Total change in regulatory asset 3,022 (1,231 ) Regulatory asset at end of year $ 6,474 $ 3,452 Net periodic pension cost $ 1,859 $ 2,015 Change in regulatory asset 3,022 (1,231 ) Total recognized in net periodic pension and regulatory asset $ 4,881 $ 784 Estimated amounts that will be amortized from regulatory asset over the next fiscal year: Initial net asset (obligation) $ — $ — Prior service cost (11 ) (25 ) Net loss (777 ) (292 ) Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 20,783 $ 16,317 Accumulated benefit obligation 17,144 14,533 Fair value of plan assets — — Weighted-average assumptions used to determine benefit obligations: Discount rate 4.34 % 4.61 % Rate of compensation increase 4.00 % 4.00 % The components of SERP expense, before allocation to the overhead pool, for 2016 , 2015 and 2014 are as follows: (dollars in thousands, except percent) 2016 2015 2014 Components of Net Periodic Benefits Cost: Service cost $ 799 $ 814 $ 768 Interest cost 743 653 615 Amortization of prior service cost 25 117 161 Amortization of net loss 292 431 139 Net periodic pension cost $ 1,859 $ 2,015 $ 1,683 Weighted-average assumptions used to determine net periodic cost: Discount rate 4.61 % 4.15 % 5.05 % Rate of compensation increase 4.00 % 4.00 % 4.00 % Benefit Payments : Estimated future benefit payments for the SERP at December 31, 2016 for the next ten years are as follows (in thousands): 2017 $ 419 2018 664 2019 731 2020 1,246 2021 1,302 Thereafter 6,714 Total $ 11,076 401(k) Investment Incentive Program : Registrant has a 401(k) Investment Incentive Program under which employees may invest a percentage of their pay, up to a maximum investment prescribed by law, in an investment program managed by an outside investment manager. Registrant’s cash contributions to the 401(k) are based upon a percentage of individual employee contributions and for the years ended December 31, 2016 , 2015 and 2014 were $2.2 million , $2.1 million and $1.9 million , respectively. In 2011, this program was amended to incorporate the defined contribution plan previously discussed. Contributions to the defined contribution plan for the years ended December 31, 2016 , 2015 and 2014 were $951,000 , $755,000 and $568,000 , respectively. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Summary Description of Stock Incentive Plans AWR currently has five stock incentive plans: the 2000, 2008 and 2016 employee plans for its employees, and the 2003 and 2013 directors plans for directors, each more fully described below. 2000, 2008 and 2016 Employee Plans — AWR adopted these employee plans, following shareholder approval, to provide stock-based incentive awards in the form of stock options, restricted stock units and restricted stock to employees as a means of promoting the success of Registrant by attracting, retaining and more fully aligning the interests of employees with those of customers and shareholders. The 2008 and 2016 employee plans also provide for the grant of performance awards. No additional grants may be made under the 2000 or 2008 employee plans. For stock options, Registrant’s Compensation Committee of the Board of Directors (“Compensation Committee”) determines, among other things, the date of grant, the form, term, option exercise price, vesting and exercise terms of each option. Stock options granted by AWR have been in the form of nonqualified stock options, expire ten years from the date of grant, vest over a period of three years and are subject to earlier termination as provided in the form of option agreement approved by the Compensation Committee. The option price per share is determined by the Compensation Committee at the time of grant, but may not be less than the fair market value of Common Shares on the date of grant. For restricted stock unit awards, the Compensation Committee determines the specific terms, conditions and provisions relating to each restricted stock unit. Each employee who has been granted a time-vested restricted stock unit is entitled to dividend equivalent rights in the form of additional restricted stock units until vesting of the time-vested restricted stock units. In general, time-vested restricted stock units vest over a period of three years. Restricted stock units may also vest upon retirement if the grantee is at least 55 and the sum of the grantee's age and years of service are equal to or greater than 75, or upon death or total disability. In addition, restricted stock units may vest following a change in control if the Company terminates the grantee other than for cause or the employee terminates employment for good reason. Each restricted stock unit is non-voting and entitles the holder of the restricted stock unit to receive one Common Share. The Compensation Committee also has the authority to determine the number, amount or value of performance awards, the duration of the performance period or performance periods applicable to the award and the performance criteria applicable to each performance award for each performance period. Each outstanding performance award granted by the Compensation Committee has been in the form of restricted stock units that generally vest over a period of three years as provided in the performance award agreement. The amount of the performance award paid to an employee depends upon satisfaction of performance criteria is generally determined by the Compensation Committee following the end of a three-year performance period. Performance awards may also vest and be payable upon retirement if the grantee is at least 55 and the sum of the grantee's age and years of service are equal to or greater than 75, or upon death or total disability, with adjustments which take into account the shortened performance period for death and disability. In addition, performance awards may vest following a change in control if the Company terminates the grantee other than for cause or the employee terminates employment for good reason, subject to adjustments which take into account the shortened performance period. 2003 and 2013 Directors Plans — The Board of Directors and shareholders of AWR have approved the 2003 and 2013 directors plans in order to provide the non-employee directors with supplemental stock-based compensation to encourage them to increase their stock ownership in AWR. No more grants may be made under the 2003 directors plan. From 2009 through 2014, non-employee directors received restricted stock units equal to two times the annual retainer. Since 2014, non-employee directors are entitled to receive restricted stock units in an amount determined by the board of directors. This amount may not exceed two times the annual retainer paid to directors. One-third of the restricted stock units granted in 2009 through 2012 were payable to each non-employee director at the earlier of the first, second and third anniversaries of the date of grant and the date of termination of service as a director. Each non-employee director is entitled to receive restricted stock units granted after 2012 ninety days after the grant date. Restricted stock units credited to each non-employee director’s restricted stock unit account are at all times fully vested and non-forfeitable. No stock options have been granted to directors since AWR’s 2006 annual meeting under the 2003 directors plan, and no stock options may be granted to directors under the 2013 directors plan. All stock options, restricted stock units and performance awards have been granted with dividend equivalent rights payable in the form of additional restricted stock units. Recognition of Compensation Expense Registrant recognizes compensation expense related to the fair value of stock-based compensation awards. Share-based compensation cost is measured by the Registrant at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant). Immediate vesting does occur if the employee is at least 55 years old and the sum of the employee’s age and years of employment is equal to or greater than 75. Registrant assumes that pre-vesting forfeitures will be minimal, and recognizes pre-vesting forfeitures as they occur, which results in a reduction in compensation expense. The following table presents share-based compensation expenses for the years ended December 31, 2016 , 2015 and 2014 . These expenses resulting from restricted stock units, including performance awards, are included in administrative and general expenses in AWR's and GSWC’s statements of income: AWR GSWC For The Years Ended December 31, For The Years Ended December 31, (in thousands) 2016 2015 2014 2016 2015 2014 Stock-based compensation related to: Restricted stock units $ 2,538 $ 2,754 $ 2,222 $ 2,118 $ 2,443 $ 1,748 Total stock-based compensation expense $ 2,538 $ 2,754 $ 2,222 $ 2,118 $ 2,443 $ 1,748 Equity-based compensation cost, capitalized as part of GSWC's utility plant for the years ended December 31, 2016 , 2015 and 2014 was $155,000 , $369,000 and $255,000 , respectively, for both AWR and GSWC. For the years ended December 31, 2016 , 2015 and 2014 , AWR realized approximately $581,000 , $877,000 and $533,000 , respectively, of tax benefits from stock-based awards. For the years ended December 31, 2016 , 2015 and 2014 , GSWC realized approximately $501,000 , $872,000 and $514,000 , respectively, of tax benefits from stock-based awards. Registrant amortizes stock-based compensation over the requisite (vesting) period for the entire award. Options issued pursuant to the 2000 employee plan vest and are exercisable in installments of 33% the first two years and 34% in the third year, starting one year from the date of the grant and expire 10 years from the date of the grant. No stock options have been granted under the 2008 employee plan. Time-vesting restricted stock units vest and become nonforfeitable in installments of 33% the first two years and 34% in the third year, starting one year from the date of the grant. Outstanding performance awards vest and become nonforfeitable in installments of 33% the first two years and 34% in the third year, and are distributed at the end of the performance period if the performance criteria set forth in the award agreement are satisfied. Stock Options — There were no stock options granted during the years 2016 , 2015 or 2014 . A summary of stock option activity as of December 31, 2016 and changes during the year ended December 31, 2016 , are presented below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding at January 1, 2016 150,606 $ 17.39 Granted — — Exercised (12,546 ) 18.75 Forfeited or expired (1,500 ) 16.87 Options outstanding at December 31, 2016 136,560 $ 17.27 1.92 $ 3,863,731 Options exercisable at December 31, 2016 136,560 $ 17.27 1.92 $ 3,863,731 The aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e., the difference between the closing price of the Common Shares on the last trading day of the 2016 calendar year and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their option on December 31, 2016 . This amount changes if the fair market value of the Common Shares changes. The total intrinsic value of options exercised during the years ended December 31, 2016 , 2015 and 2014 was approximately $308,000 , $1,457,000 and $596,000 , respectively. During the years ended December 31, 2016 , 2015 and 2014 , Registrant received approximately $235,000 , $1,198,000 and $589,000 , respectively, in cash proceeds from the exercise of its stock options. Restricted Stock Units (Time-Vested) — A restricted stock unit (“RSU”) represents the right to receive a share of AWR’s Common Shares and are valued based on the fair market value of AWR's Common Shares on the date of grant. The fair value of RSUs were determined based on the closing trading price of Common Shares on the grant date. A summary of the status of Registrant’s outstanding RSUs, excluding performance awards, to employees and directors as of December 31, 2016 , and changes during the year ended December 31, 2016 , is presented below: Number of Restricted Share Units Weighted Average Grant-Date Value Restricted share units at January 1, 2016 111,335 $ 26.21 Granted 37,807 40.52 Vested (40,555 ) 27.03 Forfeited (858 ) 38.06 Restricted share units at December 31, 2016 107,729 $ 30.83 As of December 31, 2016 , there was approximately $0.8 million of total unrecognized compensation cost related to restricted stock units granted under AWR’s employee and director’s stock plans. That cost is expected to be recognized over a weighted average period of 1.42 years. Restricted Stock Units (Performance Awards) – During the years ended December 31, 2016 , 2015 and 2014 , the Compensation Committee granted performance awards in the form of restricted stock units to officers of the Registrant. A performance award represents the right to receive a share of AWR's Common Shares if specified performance goals are met over the performance period specified in the grant (generally three years ), subject to certain exceptions through the performance period. Each grantee of any outstanding performance award may earn between 0% and 200% of the target amount depending on Registrant's performance against performance goals, which are determined by the Compensation Committee on the date of grant. As determined by the Compensation Committee, the performance awards granted during the years ended December 31, 2016 , 2015 and 2014 included various performance-based conditions and one market-based condition related to total shareholder return ("TSR") that will be earned based on Registrant’s TSR compared to the TSR for a specific peer group of investor-owned water companies. A summary of the status of Registrant’s outstanding performance awards to officers as of December 31, 2016 , and changes during the year ended December 31, 2016 , is presented below: Number of Weighted Average Performance awards at January 1, 2016 131,953 $ 30.66 Granted 29,758 40.81 Performance criteria adjustment (8,100 ) 28.09 Vested (51,408 ) 27.82 Performance awards at December 31, 2016 102,203 $ 35.25 A portion of the fair value of performance awards was estimated at the grant date based on the probability of satisfying the market-based condition using a Monte-Carlo simulation model, which assesses the probabilities of various outcomes of the market condition. The portion of the fair value of the performance awards associated with performance-based conditions was based on the fair market value of AWR's Common Shares at the grant date. The fair value of each outstanding performance award grant is amortized into compensation expense in installments of 33% the first two years and 34% in the third year of their respective vesting periods, which is generally over 3 years unless earlier vested pursuant to the terms of the agreement. The accrual of compensation costs is based on the estimate of the final expected value of the award, and is adjusted as required for the portion based on the performance-based condition. Unlike the awards with performance-based conditions, for the portion based on the market-based condition, compensation cost is recognized, and not reversed, even if the market condition is not achieved, as required by the accounting guidance for share-based awards. As of December 31, 2016 , $879,000 of unrecognized compensation costs related to performance awards is expected to be recognized over a weighted average period of 1.53 years. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Commitments | Commitments GSWC’s Water Supply : GSWC obtains its water supply from its operating wells and purchases from others, principally member agencies of the Metropolitan Water District of Southern California (“MWD”). MWD is a public agency and quasi-municipal corporation created in 1928 by a vote of the electorates of several Southern California cities. MWD’s primary purpose was and is to provide a supplemental supply of water for domestic and municipal uses and purposes at wholesale rates to its member public agencies. GSWC has connections to MWD’s water distribution facilities and those of other member water agencies. MWD’s principal sources of water are the State Water Project and the Colorado River. GSWC has contracts to purchase water or water rights for an aggregate amount of $5.3 million as of December 31, 2016 . Included in the $5.3 million is a commitment of $2.7 million to lease water rights from a third party under an agreement which expires in 2028. The remaining $2.6 million are commitments for purchased water with other third parties which expire through 2038. GSWC’s estimated future minimum payments under these purchased water supply commitments at December 31, 2016 are as follows (in thousands): 2017 $ 409 2018 409 2019 409 2020 409 2021 409 Thereafter 3,225 Total $ 5,270 Bear Valley Electric Service : Generally, GSWC’s electric division purchases power at a fixed cost, under long-term purchased power contracts, depending on the amount of power and the period during which the power is purchased under such contracts. During 2014, GSWC's power purchases were based on month-to-month arrangements, as the previous long-term purchase power contract expired in 2013. However, GSWC began taking power pursuant to new purchased power contracts approved by the CPUC effective January 1, 2015 at a fixed cost over three and five year terms depending on the amount of power and period during which the power is purchased under the contracts. As of December 31, 2016 , GSWC's commitment under these contracts totaled approximately $18.1 million . Operating Leases : Registrant leases equipment and facilities primarily for its Regional and District offices and ASUS operations under non-cancelable operating leases with varying terms, provisions and expiration dates. Rent expense for leases that contain scheduled rent increases are recorded on a straight-line basis. During 2016 , 2015 and 2014 , Registrant’s consolidated rent expense was approximately $2,298,000 , $2,740,000 and $2,982,000 , respectively. Registrant’s future minimum payments under long-term non-cancelable operating leases at December 31, 2016 are as follows (in thousands): 2017 $ 2,451 2018 2,106 2019 1,680 2020 1,347 2021 341 Thereafter 720 Total $ 8,645 There is no material difference between the consolidated operations of AWR and the operations of GSWC in regards to the future minimum payments under long-term non-cancelable operating leases. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Condemnation of Properties : The laws of the state of California provide for the acquisition of public utility property by governmental agencies through their power of eminent domain, also known as condemnation, where doing so is necessary and in the public interest. In addition, these laws provide that the owner of utility property (i) may contest whether the condemnation is actually necessary and in the public interest, and (ii) is entitled to receive the fair market value of its property if the property is ultimately taken. Claremont System: In December 2014, the City of Claremont, California filed a complaint in eminent domain against GSWC. The trial determining the City of Claremont's right to seize the system by eminent domain concluded in August 2016. On December 9, 2016, the County of Los Angeles Superior Court issued a decision rejecting the City of Claremont’s attempt to take over GSWC’s Claremont water system. On February 2, 2017, the City of Claremont filed an appeal to the decision. At this time, Registrant is unable predict the outcome of the appeal. Ojai System: In March 2013, Casitas Municipal Water District ("CMWD") passed resolutions under the Mello-Roos Communities Facilities District Act of 1982 ("Mello-Roos Act") authorizing the establishment of a Community Facilities District, and the issuance of bonds to finance the potential acquisition of GSWC’s Ojai, California system through eminent domain. In January 2014, a group of citizens referred to as "Friends of Locally Owned Water" ("FLOW") were granted class status to allow them to later file a complaint against GSWC for damages related to any potential delay in the eminent domain proceedings caused by GSWC’s challenge of CMWD’s use of Mello-Roos funds for such a taking of property. On May 12, 2016, CMWD filed a complaint in eminent domain against GSWC. The complaint also included additional causes of action related to claims of potential damages resulting from any delay caused by GSWC seeking relief in the prior action regarding the use of Mello-Roos funds for such a taking of property. On June 28, 2016, FLOW filed for intervention as a plaintiff to also seek potential damages resulting from the additional causes of actions listed above as facilitated in their earlier filing to be granted class status. On October 25, 2016, the Court struck FLOW’s complaint in intervention and their claims for damages. At this time, management cannot predict whether FLOW will appeal the Court’s ruling, and cannot predict the outcome of this eminent domain proceeding. The Ojai water system has a net book value of approximately $22.5 million . GSWC serves approximately 3,000 customers in Ojai. Environmental Clean-Up and Remediation : GSWC has been involved in environmental remediation and cleanup at a plant site (“Chadron Plant”) that contained an underground storage tank which was used to store gasoline for its vehicles. This tank was removed from the ground in July 1990 along with the dispenser and ancillary piping. Since then, GSWC has been involved in various remediation activities at this site. Analysis indicates that offsite monitoring wells may also be necessary to document effectiveness of remediation. As of December 31, 2016 , the total spent to clean-up and remediate GSWC’s plant facility was approximately $5.2 million , of which $1.5 million has been paid by the State of California Underground Storage Tank Fund. Amounts paid by GSWC have been included in rate base and approved by the CPUC for recovery. As of December 31, 2016 , GSWC has a regulatory asset and an accrued liability for the estimated additional cost of $1.4 million to complete the cleanup at the site. The estimate includes costs for two years of continued activities of groundwater cleanup and monitoring, future soil treatment and site-closure-related activities. The ultimate cost may vary as there are many unknowns in remediation of underground gasoline spills and this is an estimate based on currently available information. Management also believes it is probable that the estimated additional costs will be approved in rate base by the CPUC. Other Litigation : Registrant is also subject to other ordinary routine litigation incidental to its business. Management believes that rate recovery, proper insurance coverage and reserves are in place to insure against property, general liability and workers’ compensation claims incurred in the ordinary course of business. Registrant is unable to predict an estimate of the loss, if any, resulting from any pending suits or administrative proceedings. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments AWR has 3 reportable segments, water, electric and contracted services, whereas GSWC has 2 segments, water and electric. AWR has no material assets other than its investments in its subsidiaries on a stand-alone basis. All activities of GSWC, a rate-regulated utility, are geographically located within California. Activities of ASUS and its subsidiaries are conducted in California, Florida, Georgia, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia. Each of ASUS’s wholly owned subsidiaries is regulated, if applicable, by the state in which the subsidiary primarily conducts water and/or wastewater operations. Fees charged for operations and maintenance and renewal and replacement services are based upon the terms of the contracts with the U.S. government which have been filed, as appropriate, with the commissions in the states in which ASUS’s subsidiaries are incorporated. The tables below set forth information relating to GSWC’s operating segments, ASUS and its subsidiaries and other matters. Total assets by segment are not presented below, as certain of Registrant’s assets are not tracked by segment. The utility plants are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash and exclude U.S. government-funded and third-party prime funded capital expenditures for ASUS and property installed by developers and conveyed to GSWC. As Of And For The Year Ended December 31, 2016 GSWC ASUS AWR Consolidated (dollars in thousands) Water Electric Contracts Parent AWR Operating revenues $ 302,931 $ 35,771 $ 97,385 $ — $ 436,087 Operating income (loss) 87,911 7,908 18,916 (19 ) 114,716 Interest expense, net 19,696 1,337 68 134 21,235 Utility Plant 1,089,031 56,280 5,615 — 1,150,926 Depreciation and amortization expense (1) 35,777 2,027 1,046 — 38,850 Income tax expense/(benefit) 25,894 2,715 6,672 (546 ) 34,735 Capital additions 120,850 7,063 1,954 — 129,867 As Of And For The Year Ended December 31, 2015 GSWC ASUS AWR Consolidated (dollars in thousands) Water Electric Contracts Parent AWR Operating revenues $ 328,511 $ 36,039 $ 94,091 $ — $ 458,641 Operating income (loss) 94,213 6,196 18,091 (11 ) 118,489 Interest expense, net 19,468 1,090 26 46 20,630 Utility Plant 1,005,114 51,002 4,678 — 1,060,794 Depreciation and amortization expense (1) 39,190 1,703 1,140 — 42,033 Income tax expense/(benefit) 30,302 2,170 6,069 (810 ) 37,731 Capital additions 77,440 8,704 1,179 — 87,323 As Of And For The Year Ended December 31, 2014 GSWC ASUS AWR Consolidated (dollars in thousands) Water Electric Contracts Parent AWR Operating revenues $ 326,672 $ 34,387 $ 104,732 $ — $ 465,791 Operating income (loss) 94,014 5,728 19,351 (48 ) 119,045 Interest expense, net 19,370 1,260 142 (82 ) 20,690 Utility Plant 953,678 45,202 4,640 — 1,003,520 Depreciation and amortization expense (1) 38,388 1,466 1,219 — 41,073 Income tax expense/(benefit) 30,410 1,596 7,038 (996 ) 38,048 Capital additions 66,304 4,584 1,665 — 72,553 ____________________________ (1) Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $259,000 , $641,000 and $678,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively. The following table reconciles total utility plant (a key figure for rate-making) to total consolidated assets (in thousands): December 31, 2016 2015 Total utility plant $ 1,150,926 $ 1,060,794 Other assets 319,567 283,165 Total consolidated assets $ 1,470,493 $ 1,343,959 |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Allowance for Doubtful Accounts | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The table below presents Registrant’s provision for doubtful accounts charged to expense and accounts written off, net of recoveries. Provisions included in 2016 and 2015 for AWR and GSWC are as follows: AWR December 31, (dollars in thousands) 2016 2015 Balance at beginning of year $ 944 $ 892 Provision charged to expense 619 870 Accounts written off, net of recoveries (799 ) (818 ) Balance at end of year $ 764 $ 944 Allowance for doubtful accounts related to accounts receivable-customer $ 702 $ 790 Allowance for doubtful accounts related to other accounts receivable 62 154 Total allowance for doubtful accounts $ 764 $ 944 GSWC December 31, (dollars in thousands) 2016 2015 Balance at beginning of year $ 919 $ 892 Provision charged to expense 627 845 Accounts written off, net of recoveries (785 ) (818 ) Balance at end of year $ 761 $ 919 Allowance for doubtful accounts related to accounts receivable-customer $ 702 $ 790 Allowance for doubtful accounts related to other accounts receivable 59 129 Total allowance for doubtful accounts $ 761 $ 919 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table sets forth non-cash financing and investing activities and other cash flow information (in thousands). AWR GSWC December 31, December 31, 2016 2015 2014 2016 2015 2014 Taxes and Interest Paid: Income taxes paid $ 10,916 $ 14,817 $ 15,984 $ 8,437 $ 1,541 $ 16,500 Interest paid, net of capitalized interest 22,305 21,822 22,236 22,078 21,797 22,184 Non-Cash Transactions: Accrued payables for investment in utility plant $ 17,236 $ 20,655 $ 13,147 $ 17,207 $ 20,655 $ 13,141 Property installed by developers and conveyed 5,395 3,284 800 5,395 3,284 800 |
SCHEDULE I - CONDENSED FINANCIA
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT | CONDENSED BALANCE SHEETS December 31, (in thousands) 2016 2015 Assets Cash and equivalents $ 32 $ 836 Inter-company note receivables 76,931 12,000 Income taxes receivable and other receivables — 11 Total current assets 76,963 12,847 Investments in subsidiaries 506,584 479,397 Deferred taxes and other assets 6,964 5,604 Total assets $ 590,511 $ 497,848 Liabilities and Capitalization Notes payable to bank $ 90,000 $ 28,000 Income taxes payable 4,043 2,579 Inter-company payables — 474 Deferred taxes and other liabilities 517 28 Total current liabilities 94,560 31,081 Deferred taxes — 734 Income taxes payable and other liabilities 1,654 88 Total other liabilities 1,654 822 Common shareholders’ equity 494,297 465,945 Total capitalization 494,297 465,945 Total liabilities and capitalization $ 590,511 $ 497,848 The accompanying condensed notes are an integral part of these condensed financial statements. CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, (In thousands, except per share amounts) 2016 2015 2014 Operating revenues and other income $ 71 $ 98 $ 81 Operating expenses and other expenses 19 11 48 Income before equity in earnings of subsidiaries and income taxes 52 87 33 Equity in earnings of subsidiaries 59,145 59,587 60,029 Income before income taxes 59,197 59,674 60,062 Income tax expense (benefit) (546 ) (810 ) (996 ) Net income $ 59,743 $ 60,484 $ 61,058 Weighted Average Number of Common Shares Outstanding 36,552 37,389 38,658 Basic Earnings Per Common Share $ 1.63 $ 1.61 $ 1.57 Weighted Average Number of Diluted Common Shares Outstanding 36,750 37,614 38,880 Fully Diluted Earnings per Common Share $ 1.62 $ 1.60 $ 1.57 Dividends Paid Per Common Share $ 0.914 $ 0.874 $ 0.831 The accompanying condensed notes are an integral part of these condensed financial statements. CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, (in thousands) 2016 2015 2014 Cash Flows From Operating Activities $ 34,878 $ 57,682 $ 61,092 Cash Flows From Investing Activities: Loans (made to)/repaid from, wholly-owned subsidiaries (64,500 ) (12,000 ) 19,668 Net cash provided (used) in investing activities (64,500 ) (12,000 ) 19,668 Cash Flows From Financing Activities: Repurchase of Common Shares — (72,893 ) (17,180 ) Proceeds from note payable to GSWC — 20,700 8,300 Repayment of note payable to GSWC — (20,700 ) (8,800 ) Proceeds from stock option exercises 235 1,198 589 Net change in notes payable to banks 62,000 28,000 — Dividends paid (33,408 ) (32,690 ) (32,111 ) Other (9 ) (90 ) (36 ) Net cash provided (used) in financing activities 28,818 (76,475 ) (49,238 ) Change in cash and equivalents (804 ) (30,793 ) 31,522 Cash and equivalents at beginning of period 836 31,629 107 Cash and equivalents at the end of period $ 32 $ 836 $ 31,629 The accompanying condensed notes are an integral part of these condensed financial statements. Basis of Presentation The accompanying condensed financial statements of AWR (parent) should be read in conjunction with the consolidated financial statements and notes thereto of American States Water Company and subsidiaries (“Registrant”) included in Part II, Item 8 of this Form 10-K. AWR’s (parent) significant accounting policies are consistent with those of Registrant and its wholly-owned subsidiaries, Golden State Water Company (“GSWC”) and American States Utility Services, Inc. ("ASUS"), except that all subsidiaries are accounted for as equity method investments. Related Party Transactions: As further discussed in Note 2 — Notes Payable to Banks , AWR (parent) has access to a $150.0 million syndicated credit facility. AWR (parent) borrows under this facility and provides funds to its subsidiaries, in support of their operations. Any amounts owed to AWR (parent) for borrowings under this facility are reflected as inter-company receivables on the condensed balance sheets. The interest rate charged to the subsidiaries is sufficient to cover AWR (parent)’s interest cost under the credit facility. In October 2015, AWR issued interest bearing promissory notes (the "Notes") to GSWC and ASUS for $40 million and $10 million , respectively, which expire on May 23, 2018. Under the terms of the Notes, AWR may borrow from GSWC and ASUS amounts up to $40 million and $10 million , respectively, for working capital purposes. AWR agrees to pay any unpaid principal amounts outstanding under these notes, plus accrued interest. As of December 31, 2016 and 2015, there were no amounts outstanding under these notes. AWR (parent) guarantees performance of ASUS's military privatization contracts and agrees to provide necessary resources, including financing, which are necessary to assure the complete and satisfactory performance of such contracts. Note Payable to Banks AWR (parent) has access to a syndicated credit facility, which expires in May 2018. In October 2016, AWR elected to increase the aggregate commitment as permitted under the terms of the facility agreement from $100.0 million to $150.0 million . The aggregate effective amount that may be outstanding under letters of credit is $25.0 million . AWR has obtained letters of credit, primarily for GSWC, in the aggregate amount of $9.9 million , with fees of 0.65% including: (i) a $5.4 million letter of credit representing a percentage of the outstanding American Recovery and Reinvestment Act (“ARRA”) funds received by GSWC for reimbursement of capital costs related to the installation of meters in GSWC’s Arden-Cordova water system, (ii) letters of credit in an aggregate amount of $340,000 as security for GSWC’s business automobile insurance policy, (iii) a letter of credit in an amount of $585,000 as security for the purchase of power, (iv) a $15,000 irrevocable letter of credit pursuant to a franchise agreement with the City of Rancho Cordova, and (v) an irrevocable letter of credit in the amount of $3.6 million , pursuant to a settlement agreement with Southern California Edison Company to cover GSWC’s commitment to pay the settlement amount. Letters of credit outstanding reduce the amount that may be borrowed under the revolving credit facility. There were no compensating balances required. Loans can be obtained at the option of AWR and bear interest at rates based on credit ratings and Euro rate margins. In April 2016, Standard & Poor's Rating Services ("S&P") affirmed the A+ credit rating and stable outlook on both AWR and GSWC. S&P's debt ratings range from AAA (highest rating possible) to D (obligation is in default). In December 2016, Moody's Investors Service ("Moody's") affirmed its A2 rating with a stable outlook for GSWC. At December 31, 2016 , there was $90.0 million outstanding under this facility. At times, AWR (parent) borrows under this facility and provides loans to its subsidiaries in support of its operations, under terms that are similar to that of the credit facility. AWR’s (parent) short-term borrowing activities (excluding letters of credit) for the years ended December 31, 2016 and 2015 were as follows: December 31, (in thousands, except percent) 2016 2015 Balance Outstanding at December 31, $ 90,000 $ 28,000 Interest Rate at December 31, 1.46 % 1.09 % Average Amount Outstanding $ 59,261 $ 4,112 Weighted Average Annual Interest Rate 1.20 % 0.92 % Maximum Amount Outstanding $ 96,000 $ 37,000 All of the letters of credit are issued pursuant to the syndicated revolving credit facility. The syndicated revolving credit facility contains restrictions on prepayments, disposition of property, mergers, liens and negative pledges, indebtedness and guaranty obligations, transactions with affiliates, minimum interest coverage requirements, a maximum debt to capitalization ratio and a minimum debt rating. Pursuant to the credit agreement, AWR must maintain a minimum interest coverage ratio of 3.25 times interest expense, a maximum total funded debt ratio of 0.65 to 1.00 and a minimum debt rating from Moody’s or S&P of Baa3 or BBB-, respectively. As of December 31, 2016 , AWR was in compliance with these covenants with an interest coverage ratio of 7.07 times interest expense, a debt ratio of 0.46 to 1.00 and a debt rating of A+. Income Taxes AWR (parent) receives a tax benefit for expenses incurred at the parent-company level. AWR (parent) also recognizes the effect of AWR’s consolidated California unitary apportionment, which is beneficial or detrimental depending on a combination of the profitability of AWR’s consolidated non-California activities as well as the proportion of its consolidated California sales to total sales. Dividend from Subsidiaries Dividends in the amount of $33.8 million , $62.0 million and $52.0 million were paid to AWR (parent) by its wholly-owned subsidiaries during the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations : American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”) and American States Utility Services, Inc. (“ASUS”) (and its wholly owned subsidiaries, Fort Bliss Water Services Company (“FBWS”), Terrapin Utility Services, Inc. (“TUS”), Old Dominion Utility Services, Inc. (“ODUS”), Palmetto State Utility Services, Inc. (“PSUS”), Old North Utility Services, Inc. (“ONUS”), and Emerald Coast Utility Services, Inc. (“ECUS”)). AWR and its subsidiaries may be collectively referred to as “Registrant” or “the Company.” The subsidiaries of ASUS are collectively referred to as the “Military Utility Privatization Subsidiaries.” GSWC is a public utility engaged principally in the purchase, production, distribution and sale of water in California serving approximately 261,000 customers. GSWC also distributes electricity in several San Bernardino County mountain communities in California serving approximately 24,000 electric customers through its Bear Valley Electric Service (“BVES”) division. Although Registrant has a diversified base of residential, industrial and other customers, revenues derived from commercial and residential water customers accounted for approximately 90% of total water revenues in 2016 , 2015 and 2014 . The California Public Utilities Commission (“CPUC”) regulates GSWC’s water and electric businesses in matters including properties, rates, services, facilities, and transactions by GSWC with its affiliates. ASUS, through its wholly owned subsidiaries, operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various United States military bases pursuant to 50 -year firm fixed-price contracts. These contracts are subject to periodic price redeterminations or economic price adjustments and modifications for changes in circumstances, changes in laws and regulations and additions to the contract value for new construction of facilities at the military bases. There is no direct regulatory oversight by the CPUC over AWR or the operations, rates or services provided by ASUS or the Military Utility Privatization Subsidiaries. Basis of Presentation : The consolidated financial statements and notes thereto are presented in a combined report filed by two separate Registrants: AWR and GSWC. References in this report to “Registrant” are to AWR and GSWC, collectively, unless otherwise specified. Certain prior period amounts have been reclassified to conform to the current period presentation of debt issuance costs. AWR owns all of the outstanding Common Shares of GSWC and ASUS. ASUS owns all of the outstanding Common shares of the Military Utility Privatization Subsidiaries. The consolidated financial statements of AWR include the accounts of AWR and its subsidiaries, all of which are wholly owned. These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. Inter-company transactions and balances have been eliminated in the AWR consolidated financial statements. |
Related Party Transactions: | Related Party Transactions : GSWC and ASUS provide and/or receive various support services to and from their parent, AWR, and among themselves. GSWC also allocates certain corporate office administrative and general costs to its affiliate, ASUS, using allocation factors approved by the CPUC. During the years ended December 31, 2016 , 2015 and 2014 , GSWC allocated to ASUS approximately $3.9 million , $2.6 million and $2.7 million , respectively, of corporate office administrative and general costs. In addition, AWR has a $150.0 million syndicated credit facility. AWR borrows under this facility and provides funds to its subsidiaries, including GSWC, in support of their operations. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest cost under the credit facility. Amounts owed to GSWC by AWR, including for allocated expenses, are included in GSWC's inter-company receivables as of December 31, 2016 and 2015 . In October 2015, AWR issued interest bearing promissory notes (the "Notes") to GSWC and ASUS for $40 million and $10 million , respectively, which expire on May 23, 2018. Under the terms of the Notes, AWR may borrow from GSWC and ASUS amounts up to $40 million and $10 million , respectively, for working capital purposes. AWR agrees to pay any unpaid principal amounts outstanding under these notes, plus accrued interest. As of December 31, 2016 and 2015, there were no amounts outstanding under these notes. |
Utility Accounting: | Utility Accounting : Registrant’s accounting policies conform to accounting principles generally accepted in the United States of America ("U.S. GAAP"), including the accounting principles for rate-regulated enterprises, which reflect the ratemaking policies of the CPUC and the Federal Energy Regulatory Commission. GSWC has incurred various costs and received various credits reflected as regulatory assets and liabilities. Accounting for such costs and credits as regulatory assets and liabilities is in accordance with the guidance for accounting for the effects of certain types of regulation. This guidance sets forth the application of U.S. GAAP for those companies whose rates are established by or are subject to approval by an independent third-party regulator. Under such accounting guidance, rate regulated entities defer costs and credits on the balance sheet as regulatory assets and liabilities when it is probable that those costs and credits will be recognized in the ratemaking process in a period different from the period in which they would have been reflected in income by an unregulated company. These regulatory assets and liabilities are then recognized in the income statement in the period in which the same amounts are reflected in the rates charged for service. The amounts included as regulatory assets and liabilities that will be collected over a period exceeding one year are classified as long-term assets and liabilities as of December 31, 2016 and 2015 . |
Property and Depreciation: | Property and Depreciation : GSWC capitalizes, as utility plant, the cost of construction and the cost of additions, betterments and replacements of retired units of property. Such cost includes labor, material and certain indirect charges. Water systems acquired are recorded at estimated original cost of utility plant when first devoted to utility service and the applicable accumulated depreciation is recorded to accumulated depreciation. The difference between the estimated original cost, less accumulated depreciation, and the purchase price, if recognized by the regulator, is recorded as an acquisition adjustment within utility plant. Depreciation is computed on the straight-line, remaining-life basis, group method, based on depreciable plant in accordance with the applicable ratemaking process. GSWC's provision for depreciation expressed as a percentage of the aggregate depreciable asset balances was 2.9% for 2016 , and 3.2% for 2015 and 2014 . Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $259,000 , $641,000 and $678,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively. Expenditures for maintenance and repairs are expensed as incurred. Replaced or retired property costs, including cost of removal, are charged to the accumulated provision for depreciation. Property owned and depreciation recorded by ASUS and its subsidiaries are not material to Registrant’s financial statements. Estimated useful lives of GSWC’s utility plant, as authorized by the CPUC, are as follows: Source of water supply 30 years to 50 years Pumping 25 years to 40 years Water treatment 20 years to 35 years Transmission and distribution 25 years to 55 years Generation 40 years Other plant 7 years to 40 years |
Asset Retirement Obligations: | Asset Retirement Obligations : GSWC has a legal obligation for the retirement of its wells, which by law need to be properly capped at the time of removal. As such, GSWC incurs asset retirement obligations. GSWC records the fair value of a liability for these asset retirement obligations in the period in which they are incurred. When the liability is initially recorded, GSWC capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, GSWC either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. Retirement costs have historically been recovered through rates subsequent to the retirement costs being incurred. Accordingly, GSWC’s asset retirement obligations are reflected as a regulatory asset. GSWC also reflects the gain or loss at settlement as a regulatory asset or liability on the balance sheet. With regards to removal costs associated with certain other long-lived assets, such as water mains, distribution and transmission assets, asset retirement obligations have not been recognized as GSWC believes that it will not be obligated to retire these assets. There are no CPUC rules or regulations that require GSWC to remove any of its other long-lived assets. In addition, GSWC’s water pipelines are not subject to regulation by any federal regulatory agency. GSWC has franchise agreements with various municipalities in order to use the public right of way for utility purposes (i.e., operate water distribution and transmission assets), and if certain events occur in the future, GSWC could be required to remove or relocate certain of its pipelines. However, it is not possible to estimate an asset retirement amount since the timing and the amount of assets that may be required to be removed, if any, is not known. Amounts recorded for asset retirement obligations are subject to various assumptions and determinations, such as determining whether a legal obligation exists to remove assets, and estimating the fair value of the costs of removal, when final removal will occur and the credit-adjusted risk-free interest rates to be utilized on discounting future liabilities. Changes that may arise over time with regard to these assumptions will change amounts recorded in the future. Revisions in estimates for timing or estimated cash flows are recognized as changes in the carrying amount of the liability and the related capitalized asset. The estimated fair value of the costs of removal was based on third party costs. |
Impairment of Long-Lived Assets: | Impairment of Long-Lived Assets : Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable in accordance with accounting guidance for impairment or disposal of long-lived assets. Registrant would recognize an impairment loss on its regulated assets only if the carrying value amount of a long-lived asset is not recoverable from customer rates authorized by the CPUC. Impairment loss is measured as the excess of the carrying value over the amounts recovered in customer rates. For the years ended December 31, 2016 , 2015 and 2014 , no impairment loss was incurred. |
Goodwill: | Goodwill : At December 31, 2016 and 2015 , AWR had approximately $1.1 million of goodwill. The $1.1 million goodwill arose from ASUS’s acquisition of a subcontractor’s business at some of the Military Utility Privatization Subsidiaries. In accordance with the accounting guidance for testing goodwill, AWR annually assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. For 2016 , AWR’s assessment of qualitative factors did not indicate that an impairment had occurred for the goodwill amount of $1.1 million at ASUS. |
Cash and Cash Equivalents: | Cash and Cash Equivalents : Cash and cash equivalents include short-term cash investments with an original maturity of three months or less. At times, cash and cash equivalent balances may be in excess of federally insured limits. Cash and cash equivalents are held with financial institutions with high credit standings. |
Accounts Receivable: | Accounts Receivable : Accounts receivable is reported on the balance sheet net of any allowance for doubtful accounts. The allowance for doubtful accounts is Registrant’s best estimate of the amount of probable credit losses in Registrant’s existing accounts receivable from its water and electric customers, and is determined based on historical write-off experience and the aging of account balances. Registrant reviews the allowance for doubtful accounts quarterly. Account balances are written off against the allowance when it is probable the receivable will not be recovered. When utility customers request extended payment terms, credit is extended based on regulatory guidelines, and collateral is not required. Receivables from the U.S. Government include amounts due under contracts with the U.S. Government to operate and maintain, and/or provide construction services for the water and/or wastewater systems at military bases. Other accounts receivable consist of amounts due from third parties (non-utility customers) for various reasons, including amounts due from contractors, amounts due under settlement agreements, and amounts due from other third-party prime government contractors pursuant to agreements for construction of water and/or wastewater facilities for such third-party prime contractors. The allowance for these other accounts receivable is based on Registrant’s evaluation of the receivable portfolio under current conditions and a review of specific problems and such other factors that, in Registrant’s judgment, should be considered in estimating losses. Allowances for doubtful accounts are disclosed in Note 16. |
Materials and Supplies: | Materials and Supplies : Materials and supplies are stated at the lower of cost or market. Cost is computed using average cost. Major classes of materials include pipe, hydrants and valves. |
Interest: | Interest : Interest incurred during the construction of capital assets has generally not been capitalized for financial reporting purposes as such policy is not followed in the ratemaking process. Interest expense is generally recovered through the regulatory process. However, the CPUC has authorized certain capital projects to be filed for revenue recovery with advice letters when those projects are completed. During the time that such projects are under development and construction, GSWC may accrue an allowance for funds used during construction (“AFUDC”) on the incurred expenditures to offset the cost of financing project construction. For the years ended December 31, 2016 , 2015 and 2014 , GSWC recorded $101,000 , $694,000 and $24,000 , respectively, of AFUDC related to these capital projects based on a weighted cost of capital of 8.34% for water and a cost of debt of 6.96% for electric, as approved by the CPUC. |
Water and Electric Operating Revenues: | Water and Electric Operating Revenues: GSWC records water and electric utility operating revenues when the service is provided to customers. Revenues include amounts billed to customers on a cycle basis based on meter readings for services provided and unbilled revenues representing estimated amounts to be billed for usage from the last meter reading date to the end of the accounting period. Unbilled revenues are based on historic customer usage to estimate unbilled usage. Flat-rate customers are billed in advance at the beginning of the service period. Revenue from flat-rate customers is deferred and adjustments are calculated to determine the revenue related to the applicable period. |
Alternative-Revenue Program: | Alternative-Revenue Programs: As authorized by the CPUC, GSWC records in revenues the difference between the adopted level of volumetric revenues as authorized by the CPUC for metered accounts (volumetric revenues) and the actual volumetric revenues recovered in customer rates. If this difference results in an under-collection of revenues, GSWC records the additional revenue only to the extent that they are expected to be collected within 24 months following the year in which they are recorded in accordance with the accounting guidance for alternative-revenue programs. |
Other Operating Revenues: | Contracted Services Revenues : Revenues from ASUS contract operations and maintenance agreements are recognized on a monthly basis when services have been rendered to the U.S. government. Revenues for construction contracts are recognized based on the percentage-of-completion and cost-plus methods of accounting. In accordance with U.S. GAAP, revenue recognition under these methods require ASUS to estimate the progress toward completion on a contract in terms of efforts (such as costs incurred) or, in the case of the percentage of completion method, in terms of results achieved (such as units constructed). These approaches are used because management considers them to be the best available measure of progress on these contracts. Revenues from cost-plus contracts of ASUS are recognized on the basis of costs incurred during the period plus the profit earned, measured by the cost-to-cost method. Unbilled receivables from the U.S. government represent amounts to be billed for construction work completed and/or for services rendered pursuant to contracts with the U.S government, which are not presently billable but which will be billed under the terms of those contracts. Construction costs for ASUS include all direct material and labor costs charged by subcontractors, direct labor of employees of the Military Utility Privatization Subsidiaries, and those indirect costs related to contract performance, such as indirect labor, supplies, and tools. The factors considered in including such costs in revenues and expenses are that ASUS and/or its subsidiaries: (i) are the primary obligor in these arrangements with the U.S. government and the third party prime contractors, (ii) have latitude in establishing pricing, and (iii) bear credit risk in the collection of receivables. Administrative and general costs are charged to expense as incurred. Precontract costs for ASUS, which consist of design and engineering labor costs, are deferred if they are probable of recovery and are expensed as incurred if they are not probable of recovery. Deferred precontract costs have been immaterial to date. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, change orders and estimated profitability, including those arising from contract penalty provisions, and final contract settlements may result in revisions to costs and income for ASUS and are recognized in the period in which the revisions are determined. The asset, “Costs and estimated earnings in excess of billings on contracts,” represents revenues recognized in excess of amounts billed. The liability, “Billings in excess of costs and estimated earnings on contracts,” represents billings in excess of revenues recognized. Amounts expected to be earned/collected in the next 12-months have been classified as current. |
Debt Issuance Costs and Redemption Premiums: | Debt Issuance Costs and Redemption Premiums : Original debt issuance costs are deducted from the carrying value of the associated debt liability and amortized over the lives of the respective issues. Premiums paid on the early redemption of debt, which is reacquired through refunding, are deferred and amortized over the life of the debt issued to finance the refunding as Registrant normally receives recovery of these costs in rates. |
Advances for Construction and Contributions in aid of Constructions: | Advances for Construction and Contributions in Aid of Construction : Advances for construction represent amounts advanced by developers for the cost to construct water system facilities in order to extend water service to their properties. Advances are generally refundable in equal annual installments, generally over 40 years . In certain instances, GSWC makes refunds on these advances over a specific period of time based on operating revenues related to the main or as new customers are connected to receive service from the main. Utility plant funded by advances and contributions is excluded from rate base. Generally, GSWC depreciates contributed property and amortizes contributions in aid of construction at the composite rate of the related property. Contributions in aid of construction are similar to advances, but require no refunding. |
Fair Value of Financial Instruments: | Fair Value of Financial Instruments : For cash and cash equivalents, accounts receivable, accounts payable and short-term debt, the carrying amount is assumed to approximate fair value due to the short-term nature of the amounts. The table below estimates the fair value of long-term debt issued by GSWC. Rates available to GSWC at December 31, 2016 and 2015 for debt with similar terms and remaining maturities were used to estimate fair value for long-term debt. Changes in the assumptions will produce differing results. 2016 2015 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt—GSWC (1) $ 325,582 $ 423,124 $ 325,853 $ 403,844 (1) Excludes debt issuance costs and redemption premiums. The accounting guidance for fair value measurements applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. Under the accounting guidance, GSWC makes fair value measurements that are classified and disclosed in one of the following three categories: Level 1 : Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 : Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; or Level 3 : Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Publicly issued notes, private placement notes and other long-term debt are measured using current U.S. corporate bond yields for similar debt instruments and are classified as Level 2. The following table sets forth by level, within the fair value hierarchy, GSWC’s long-term debt measured at fair value as of December 31, 2016 : (dollars in thousands) Level 1 Level 2 Level 3 Total Long-term debt—GSWC — $ 423,124 — $ 423,124 |
Stock Awards | Stock Awards : AWR has issued stock awards to its employees under the 2000 Stock Incentive Plan, ("2000 employee plan"), the 2008 Stock Incentive Plan, ("2008 employee plan"), and the 2016 Stock Incentive Plan, ("2016 employee plan"). AWR has also issued stock awards to its directors under the 2003 Non-Employee Directors Stock Plan, ("2003 directors plan"), and the 2013 Non-Employee Directors Plan, ("2013 directors plan"). Registrant applies the provisions in the accounting guidance for share-based payments in accounting for all of its stock-based awards. See Note 12 for further discussion. |
Sales and Use Taxes: | Sales and Use Taxes : GSWC bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which GSWC pays to various municipalities (based on ordinances adopted by these municipalities) in order to use public rights of way for utility purposes. GSWC bills these franchise fees to its customers based on a CPUC-authorized rate for each rate-making area as applicable. These franchise fees, which are required to be paid regardless of GSWC’s ability to collect them from its customers, are accounted for on a gross basis. GSWC’s franchise fees billed to customers and recorded as operating revenue were approximately $3.5 million , $3.8 million and $3.7 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. When GSWC acts as an agent, and the tax is not required to be remitted if it is not collected from the customer, the taxes are accounted for on a net basis. Depending on the state in which its subsidiary operations are conducted, ASUS is also subject to certain state non-income tax assessments generally computed on a “gross receipts” or “gross revenues” basis. These non-income tax assessments are required to be paid regardless of whether the subsidiary is reimbursed by the U.S. government for these assessments under its 50-year contracts, including modifications to these contracts. The non-income tax assessments are accounted for on a gross basis and totaled $309,000 , $367,000 and $490,000 during the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Recently Adopted Accounting Pronouncements: | Recently Issued Accounting Pronouncements : In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, rather than as an asset. The standard does not affect the recognition and measurement of debt issuance costs. Registrant adopted the guidance effective January 1, 2016. As of December 31, 2016 and 2015 , Registrant had $4.3 million in debt issuance costs reflected under "Long-term debt." In March 2016, the FASB issued Accounting Standard Update 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation - Stock Compensation. Under the new guidance, the tax effects related to share-based payments at settlement (or expiration) will be required to be recorded through the income statement rather than through equity, further increasing the volatility of income tax expense. The new standard also removes the requirement to delay recognition of a windfall tax benefit until an employer reduces its current taxes payable. It also permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for shared-based payment awards. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Once adopted, income tax benefits in excess of compensation costs or tax deficiencies for share-based compensation will be recorded to the income tax provision, instead of to Registrant's shareholders' equity, which will impact the effective tax rate. Registrant will adopt the new standard during the first quarter of 2017, effective January 1, 2017, and it does not expect the new guidance to have a significant impact on Registrant's net earnings or effective tax rate. In May 2014, the FASB issued updated accounting guidance on revenue recognition. Under this guidance, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what the entity expects in exchange for the goods or services. The guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and adoption is not permitted earlier than 2017. The guidance allows entities to select one of two methods of adoption, either the full retrospective approach, meaning the guidance would be applied to all periods presented, or modified retrospective approach, meaning the cumulative effect of applying the guidance would be recognized as an adjustment to opening retained earnings at January 1, 2018, along with providing certain additional disclosures. Registrant will adopt this guidance in the fiscal year beginning January 1, 2018 and expects to adopt this guidance under the modified retrospective approach. Management continues to assess all potential impacts of the standard, and does not believe the new standard will have an impact on GSWC's revenues for water and electric customer usage and meter charges. At this time, it is not clear how the new standard applies to contributions in aid of construction-type contracts which, under current U.S. GAAP, are recorded as liabilities and a reduction to rate base. In instances where construction contracts contain more than one distinct good or service, as defined by the standard, the new standard may affect the timing of when Registrant recognizes contracted services revenue for such contracts. |
SCHEDULE I - CONDENSED FINANC27
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT Related Party (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions: As further discussed in Note 2 — Notes Payable to Banks , AWR (parent) has access to a $150.0 million syndicated credit facility. AWR (parent) borrows under this facility and provides funds to its subsidiaries, in support of their operations. Any amounts owed to AWR (parent) for borrowings under this facility are reflected as inter-company receivables on the condensed balance sheets. The interest rate charged to the subsidiaries is sufficient to cover AWR (parent)’s interest cost under the credit facility. In October 2015, AWR issued interest bearing promissory notes (the "Notes") to GSWC and ASUS for $40 million and $10 million , respectively, which expire on May 23, 2018. Under the terms of the Notes, AWR may borrow from GSWC and ASUS amounts up to $40 million and $10 million , respectively, for working capital purposes. AWR agrees to pay any unpaid principal amounts outstanding under these notes, plus accrued interest. As of December 31, 2016 and 2015, there were no amounts outstanding under these notes. AWR (parent) guarantees performance of ASUS's military privatization contracts and agrees to provide necessary resources, including financing, which are necessary to assure the complete and satisfactory performance of such contracts. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) - GSWC | 12 Months Ended |
Dec. 31, 2016 | |
Summary of significant accounting policies | |
Schedule of estimated useful lives of utility plant, as authorized by the CPUC | Estimated useful lives of GSWC’s utility plant, as authorized by the CPUC, are as follows: Source of water supply 30 years to 50 years Pumping 25 years to 40 years Water treatment 20 years to 35 years Transmission and distribution 25 years to 55 years Generation 40 years Other plant 7 years to 40 years |
Schedule of estimates of the fair value of long-term debt | The table below estimates the fair value of long-term debt issued by GSWC. Rates available to GSWC at December 31, 2016 and 2015 for debt with similar terms and remaining maturities were used to estimate fair value for long-term debt. Changes in the assumptions will produce differing results. 2016 2015 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt—GSWC (1) $ 325,582 $ 423,124 $ 325,853 $ 403,844 |
Schedule of long-term debt measured at fair value | The following table sets forth by level, within the fair value hierarchy, GSWC’s long-term debt measured at fair value as of December 31, 2016 : (dollars in thousands) Level 1 Level 2 Level 3 Total Long-term debt—GSWC — $ 423,124 — $ 423,124 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulated Operations [Abstract] | |
Schedule of regulatory assets, less regulatory liabilities in the consolidated balance sheets for continuing operations | Regulatory assets, less regulatory liabilities, included in the consolidated balance sheets are as follows: December 31, (dollars in thousands) 2016 2015 GSWC Water Revenue Adjustment Mechanism and Modified Cost Balancing Account $ 47,340 $ 45,171 Costs deferred for future recovery on Aerojet case 11,820 12,699 Pensions and other post-retirement obligations (Note 11) 28,118 21,996 Derivative unrealized loss (Note 4) 4,901 7,053 Flow-through taxes, net (Note 10) 20,134 16,176 Low income rate assistance balancing accounts 8,272 8,699 General rate case memorandum accounts 13,929 4,433 Other regulatory assets 17,633 21,235 Various refunds to customers (5,866 ) (4,766 ) Total $ 146,281 $ 132,696 |
Utility Plant and Intangible 30
Utility Plant and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Utility Plant and Intangible Assets | |
Schedule of Registrant's utility plant utilized in continuing operations by major asset class | The following table shows Registrant’s utility plant by major asset class: AWR GSWC December 31, (dollars in thousands) 2016 2015 2016 2015 Water Land $ 15,393 $ 15,299 $ 15,393 $ 15,299 Intangible assets 36,291 34,848 36,273 34,830 Source of water supply 86,775 86,914 86,775 86,914 Pumping 169,983 161,668 169,983 161,668 Water treatment 74,980 72,238 74,980 72,238 Transmission and distribution 1,014,925 941,651 1,014,925 941,651 General 127,969 126,438 116,090 115,424 1,526,316 1,439,056 1,514,419 1,428,024 Electric Transmission and distribution 71,112 66,121 71,112 66,121 Generation 12,583 12,563 12,583 12,563 General (1) 10,314 9,797 10,314 9,797 94,009 88,481 94,009 88,481 Less — accumulated depreciation (532,753 ) (529,698 ) (524,927 ) (522,749 ) Construction work in progress 63,354 62,955 61,810 62,360 Net utility plant $ 1,150,926 $ 1,060,794 $ 1,145,311 $ 1,056,116 (1) Includes intangible assets of $1.2 million for the years ended December 31, 2016 and 2015 for studies performed in association with the electricity segment of the Registrant’s operations. |
Schedule of components of intangible assets | As of December 31, 2016 and 2015 , intangible assets consist of the following: Weighted Average Amortization AWR December 31, GSWC December 31, (dollars in thousands) Period 2016 2015 2016 2015 Intangible assets : Conservation programs 3 years $ 9,496 $ 9,496 $ 9,496 $ 9,496 Water and service rights (2) 30 years 8,695 8,695 8,124 8,124 Water planning studies 14 years 19,487 18,044 19,487 18,044 Total intangible assets 37,678 36,235 37,107 35,664 Less — accumulated amortization (28,108 ) (26,291 ) (28,001 ) (26,196 ) Intangible assets, net of amortization $ 9,570 $ 9,944 $ 9,106 $ 9,468 Intangible assets not subject to amortization (3) $ 427 $ 427 $ 409 $ 409 (2) Includes intangible assets of $571,000 for contracted services included in "Other Property and Investments" on the consolidated balance sheets as of December 31, 2016 and 2015 . (3) The intangible assets not subject to amortization primarily consist of organization and consent fees. |
Schedule of estimated future consolidated amortization expenses related to intangible assets | Estimated future consolidated amortization expenses related to intangible assets for the succeeding five years are (in thousands): Amortization Expense 2017 $ 1,922 2018 1,922 2019 1,737 2020 1,609 2021 1,485 Total $ 8,675 |
Schedule of reconciliation of the beginning and ending aggregate carrying amount of the asset retirement obligations | The following is a reconciliation of the beginning and ending aggregate carrying amount of asset retirement obligations, which are included in “Other Credits” on the balance sheets as of December 31, 2016 and 2015 : (dollars in thousands) GSWC Obligation at December 31, 2014 $ 3,234 Additional liabilities incurred 7 Accretion 209 Revision of previous estimates 707 Obligation at December 31, 2015 $ 4,157 Additional liabilities incurred 121 Liabilities settled (112 ) Accretion 227 Obligation at December 31, 2016 $ 4,393 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
GSWC | |
Derivative instruments | |
Schedule of changes in the fair value of the derivative | The following table presents changes in the fair value of GSWC’s derivatives for the years ended December 31, 2016 and 2015 : (dollars in thousands) 2016 2015 Balance, at beginning of the period $ (7,053 ) $ (3,339 ) Unrealized gain (loss) on purchased power contracts 2,152 (3,714 ) Balance, at end of the period $ (4,901 ) $ (7,053 ) |
Military Privatization (Tables)
Military Privatization (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Military Privatization | |
Schedule of costs and estimated earnings on uncompleted contracts and amounts due from the U.S. government | Costs and estimated earnings on contracts and amounts due from the U.S. government as of December 31, 2016 and 2015 are as follows: (dollars in thousands) 2016 2015 Revenues (costs and estimated earnings) recognized on contracts $ 104,830 $ 111,397 Less: Billings to date on contracts (43,161 ) (61,662 ) $ 61,669 $ 49,735 Included in the accompanying balance sheets under the following captions: Costs and estimated earnings in excess of billings on contracts $ 63,932 $ 53,499 Billings in excess of costs and estimated earnings on contracts (2,263 ) (3,764 ) $ 61,669 $ 49,735 Receivables from the U.S. government: Billed receivables from the U.S. government $ 8,467 $ 5,861 Unbilled receivables from the U.S. government (current) 6,691 1,309 Total $ 15,158 $ 7,170 |
Earnings Per Share and Capita33
Earnings Per Share and Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of Registrant's net income and weighted average Common Shares outstanding for calculating basic net income per share | The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating basic net income per share: Basic: For The Years Ended December 31, (in thousands, except per share amounts) 2016 2015 2014 Net income $ 59,743 $ 60,484 $ 61,058 Less: (a) Distributed earnings to common shareholders 33,408 32,690 32,125 Distributed earnings to participating securities 187 207 177 Undistributed earnings 26,148 27,587 28,756 (b) Undistributed earnings allocated to common shareholders 26,003 27,414 28,599 Undistributed earnings allocated to participating securities 145 173 157 Total income available to common shareholders, basic (a)+(b) $ 59,411 $ 60,104 $ 60,724 Weighted average Common Shares outstanding, basic 36,552 37,389 38,658 Basic earnings per Common Share $ 1.63 $ 1.61 $ 1.57 |
Schedule of reconciliation of Registrant's net income and weighted average Common Shares outstanding for calculating diluted net income per share | The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating diluted net income per share: Diluted: For The Years Ended December 31, (in thousands, except per share amounts) 2016 2015 2014 Common shareholders earnings, basic $ 59,411 $ 60,104 $ 60,724 Undistributed earnings for dilutive stock options and restricted stock units 145 173 157 Total common shareholders earnings, diluted $ 59,556 $ 60,277 $ 60,881 Weighted average Common Shares outstanding, basic 36,552 37,389 38,658 Stock-based compensation (1) 198 225 222 Weighted average Common Shares outstanding, diluted 36,750 37,614 38,880 Diluted earnings per Common Share $ 1.62 $ 1.60 $ 1.57 (1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 136,560 stock options and 209,932 restricted stock units, including performance awards, at December 31, 2016 were deemed to be outstanding in accordance with accounting guidance on earnings per share. |
Bank Debt (Tables)
Bank Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Bank Debt | |
Schedule of short-term borrowing activities (excluding letters of credit) | AWR’s short-term borrowing activities (excluding letters of credit) for the years ending December 31, 2016 and 2015 were as follows: December 31, (in thousands, except percent) 2016 2015 Balance Outstanding at December 31, $ 90,000 $ 28,000 Interest Rate at December 31, 1.46 % 1.09 % Average Amount Outstanding $ 59,261 $ 4,112 Weighted Average Annual Interest Rate 1.20 % 0.92 % Maximum Amount Outstanding $ 96,000 $ 37,000 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of annual maturities of all long-term debt, including capitalized leases | Annual maturities of all long-term debt, including capitalized leases, at December 31, 2016 are as follows (in thousands): Maturity as of December 31, 2017 $ 330 2018 325 2019 40,322 2020 346 2021 365 Thereafter 283,894 Total $ 325,582 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of significant components of the deferred tax assets and liabilities from continuing operations | The significant components of the deferred tax assets and liabilities as reflected in the balance sheets at December 31, 2016 and 2015 are: AWR GSWC December 31, December 31, (dollars in thousands) 2016 2015 2016 2015 Deferred tax assets: Regulatory-liability-related: ITC $ 903 $ 952 $ 903 $ 952 Regulatory-liability-related: California Corp Franchise Tax 3,365 4,530 3,365 4,530 Other non-property-related 1,993 2,486 1,901 1,997 Contributions and advances 7,464 8,026 7,712 8,026 $ 13,725 $ 15,994 $ 13,881 $ 15,505 Deferred tax liabilities: Fixed assets $ (200,378 ) $ (178,004 ) $ (203,133 ) $ (179,660 ) Regulatory-asset-related: depreciation and other (24,402 ) (21,658 ) (24,402 ) (21,658 ) California Corp Franchise Tax (2,033 ) (2,440 ) (2,208 ) (3,051 ) Other property-related — (66 ) (68 ) (65 ) Balancing and memorandum accounts (7,010 ) (1,824 ) (7,271 ) (1,824 ) Deferred charges (4,429 ) (4,849 ) (4,597 ) (4,905 ) (238,252 ) (208,841 ) (241,679 ) (211,163 ) Accumulated deferred income taxes - net $ (224,527 ) $ (192,847 ) $ (227,798 ) $ (195,658 ) |
Schedule of current and deferred components of income tax expense from continuing operations | The current and deferred components of income tax expense are as follows: AWR Year Ended December 31, (dollars in thousands) 2016 2015 2014 Current Federal $ 2,297 $ 21,866 $ 5,595 State 4,798 5,442 137 Total current tax expense $ 7,095 $ 27,308 $ 5,732 Deferred Federal $ 26,715 $ 8,948 $ 24,815 State 925 1,475 7,501 Total deferred tax expense 27,640 10,423 32,316 Total income tax expense $ 34,735 $ 37,731 $ 38,048 GSWC Year Ended December 31, (dollars in thousands) 2016 2015 2014 Current Federal $ (3,115 ) $ 16,196 $ 408 State 3,625 5,557 (2,754 ) Total current tax expense $ 510 $ 21,753 $ (2,346 ) Deferred Federal $ 25,864 $ 8,536 $ 24,373 State 2,235 2,183 9,979 Total deferred tax expense 28,099 10,719 34,352 Total income tax expense $ 28,609 $ 32,472 $ 32,006 |
Schedule of reconciliations of the effective tax rates to the federal statutory rate | The reconciliations of the effective tax rates to the federal statutory rate are as follows: AWR Year Ended December 31, (dollars in thousands, except percent) 2016 2015 2014 Federal taxes on pretax income at statutory rate $ 33,067 $ 34,375 $ 34,687 Increase (decrease) in taxes resulting from: State income tax, net of federal benefit 3,029 4,843 4,781 Flow-through on fixed assets 994 626 651 Flow-through on pension costs (247 ) 267 (507 ) Flow-through on removal costs (2,068 ) (929 ) (1,571 ) Domestic production activities deduction (78 ) (1,560 ) (643 ) Investment tax credit (83 ) (88 ) (91 ) Other – net 121 197 741 Total income tax expense from operations $ 34,735 $ 37,731 $ 38,048 Pretax income from operations $ 94,478 $ 98,215 $ 99,106 Effective income tax rate 36.8 % 38.4 % 38.4 % GSWC Year Ended December 31, (dollars in thousands, except percent) 2016 2015 2014 Federal taxes on pretax income at statutory rate $ 26,452 $ 28,022 $ 27,952 Increase (decrease) in taxes resulting from: State income tax, net of federal benefit 3,118 5,151 4,693 Flow-through on fixed assets 994 626 651 Flow-through on pension costs (247 ) 267 (507 ) Flow-through on removal costs (2,068 ) (929 ) (1,571 ) Domestic production activities deduction — (1,268 ) (55 ) Investment tax credit (82 ) (88 ) (91 ) Other – net 442 691 934 Total income tax expense from operations $ 28,609 $ 32,472 $ 32,006 Pretax income from operations $ 75,578 $ 80,063 $ 79,863 Effective income tax rate 37.9 % 40.6 % 40.1 % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Employee benefit plans | |
Schedule of Pension Plan's funded status and amounts recognized in balance sheets and the components of net pension cost and accrued post-retirement liability | The following table sets forth the Pension Plan’s and post-retirement medical plan’s funded status and amounts recognized in Registrant’s balance sheets and the components of net pension cost and accrued liability at December 31, 2016 and 2015 : Pension Benefits Post-Retirement Medical Benefits (dollars in thousands) 2016 2015 2016 2015 Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 168,934 $ 185,184 $ 9,393 $ 12,326 Service cost 5,094 6,276 247 340 Interest cost 7,910 7,686 371 435 Actuarial (gain) loss 4,162 (24,413 ) (715 ) (3,375 ) Benefits/expenses paid (5,736 ) (5,799 ) (494 ) (333 ) Projected benefit obligation at end of year $ 180,364 $ 168,934 $ 8,802 $ 9,393 Changes in Plan Assets: Fair value of plan assets at beginning of year $ 142,174 $ 140,561 $ 10,614 $ 10,723 Actual return on plan assets 9,182 673 418 115 Employer contributions 5,252 6,739 — 109 Benefits/expenses paid (5,736 ) (5,799 ) (494 ) (333 ) Fair value of plan assets at end of year $ 150,872 $ 142,174 $ 10,538 $ 10,614 Funded Status: Net amount recognized as accrued pension cost $ (29,492 ) $ (26,760 ) $ 1,736 $ 1,221 Pension Benefits Post-Retirement Medical Benefits (in thousands) 2016 2015 2016 2015 Amounts recognized on the balance sheets: Non-current assets $ — $ — $ 1,736 $ 1,221 Current liabilities — — — — Non-current liabilities (29,492 ) (26,760 ) — — Net amount recognized $ (29,492 ) $ (26,760 ) $ 1,736 $ 1,221 Amounts recognized in regulatory assets consist of: Prior service cost (credit) $ — $ 49 $ — $ (34 ) Net (gain) loss 25,828 21,921 (5,515 ) (5,572 ) Regulatory assets (liabilities) 25,828 21,970 (5,515 ) (5,606 ) Unfunded accrued pension cost 3,664 4,790 3,779 4,385 Net liability (asset) recognized $ 29,492 $ 26,760 $ (1,736 ) $ (1,221 ) Changes in plan assets and benefit obligations recognized in regulatory assets: Regulatory asset at beginning of year $ 21,970 $ 39,170 $ (5,606 ) $ (3,125 ) Net loss (gain) 4,818 (15,292 ) (644 ) (2,997 ) Amortization of prior service (cost) credit (49 ) (118 ) 34 200 Amortization of net gain (loss) (911 ) (1,790 ) 701 316 Total change in regulatory asset 3,858 (17,200 ) 91 (2,481 ) Regulatory asset (liability) at end of year $ 25,828 $ 21,970 $ (5,515 ) $ (5,606 ) Net periodic pension costs $ 4,126 $ 6,075 $ (606 ) $ (234 ) Change in regulatory asset 3,858 (17,200 ) 91 (2,481 ) Total recognized in net periodic pension cost and regulatory asset (liability) $ 7,984 $ (11,125 ) $ (515 ) $ (2,715 ) Estimated amounts that will be amortized from regulatory asset over the next fiscal year: Prior service (cost) credit $ — $ (49 ) $ — $ 34 Net gain (loss) $ (835 ) $ (510 ) $ 679 $ 599 Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 180,364 $ 168,934 $ 8,802 $ 9,393 Accumulated benefit obligation $ 165,998 $ 155,469 N/A N/A Fair value of plan assets $ 150,872 $ 142,174 $ 10,538 $ 10,614 Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 4.44 % 4.65 % 3.97 % 4.25 % Rate of compensation increase * * N/A N/A * Age-graded ranging from 3.0% to 8.0% . |
Schedule of components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool | The components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool, for 2016 , 2015 and 2014 are as follows: Pension Benefits Post-Retirement Medical Benefits (dollars in thousands, except percent) 2016 2015 2014 2016 2015 2014 Components of Net Periodic Benefits Cost: Service cost $ 5,094 $ 6,276 $ 5,643 $ 247 $ 340 $ 348 Interest cost 7,910 7,686 7,520 371 435 495 Expected return on plan assets (9,838 ) (9,795 ) (8,898 ) (489 ) (493 ) (453 ) Amortization of transition — — — — — 418 Amortization of prior service cost (credit) 49 118 118 (34 ) (200 ) (200 ) Amortization of actuarial (gain) loss 911 1,790 — (701 ) (316 ) (330 ) Net periodic pension cost under accounting standards $ 4,126 $ 6,075 $ 4,383 $ (606 ) $ (234 ) $ 278 Regulatory adjustment - over collection 859 523 1,622 — — — Total expense recognized, before allocation to overhead pool $ 4,985 $ 6,598 $ 6,005 $ (606 ) $ (234 ) $ 278 Weighted-average assumptions used to determine net periodic cost: Discount rate 4.65 % 4.25 % 5.10 % 4.25 % 3.80 % 4.65 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % * * * Rate of compensation increase ** 4.00 % 4.00 % N/A N/A N/A * 7.0% for union plan, 4.2% for non-union, net of income taxes in 2016 , 2015 and 2014 . |
Schedule of Actual Allocation of Plan Assets [Table Text Block] | The Committee approves the target asset allocations. Registrant’s pension and post-retirement plan weighted-average asset allocations at December 31, 2016 and 2015 , by asset category are as follows: Pension Benefits Post-Retirement Medical Benefits Asset Category 2016 2015 2016 2015 Actual Asset Allocations : Equity securities 57 % 55 % 58 % 60 % Debt securities 38 % 40 % 39 % 38 % Real Estate Funds 5 % 5 % — % — % Cash equivalents — % — % 3 % 2 % Total 100 % 100 % 100 % 100 % |
Schedule of pension and post-retirement plan target asset allocations | Equity securities did not include AWR’s Common Shares as of December 31, 2016 and 2015 . Target Asset Allocations for 2016: Pension Benefits Post-retirement Medical Benefits Equity securities 60 % 60 % Debt securities 40 % 40 % Total 100 % 100 % |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Table Text Block] | The following tables set forth the fair value, measured by net asset value, of the pension investment assets as of December 31, 2016 and 2015 : Net Asset Value as of December 31, 2016 (dollars in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Cash equivalents $ 500 — N/A N/A Fixed income fund 57,674 — Daily Daily Equity securities : U.S. small/mid cap funds 24,312 — Daily Daily U.S. large cap funds 46,175 — Daily Daily International funds 14,869 — Daily Daily Total equity funds 85,356 — Real estate funds 7,342 — Daily Daily Total $ 150,872 — Net Asset Value as of December 31, 2015 (dollars in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Cash equivalents $ 469 — N/A N/A Fixed income fund 56,218 — Daily Daily Equity securities : U.S. small/mid cap funds 21,219 — Daily Daily U.S. large cap funds 42,395 — Daily Daily International funds 14,455 — Daily Daily Total equity funds 78,069 — Real estate funds 7,418 — Daily Daily Total $ 142,174 — |
Schedule of pension and post-retirement plans' investment assets measured at fair value | The following tables set forth by level, within the fair value hierarchy, the post-retirement plan's investment assets measured at fair value as of December 31, 2016 and 2015 : Fair Value as of December 31, 2016 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Post-Retirement Plan Assets: Cash equivalents $ 360 — — $ 360 Fixed income 4,072 — — 4,072 U.S. equity securities (large cap stocks) 6,106 — — 6,106 Total investments measured at fair value $ 10,538 — — $ 10,538 Fair Value as of December 31, 2015 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Post-Retirement Plan Assets: Cash equivalents $ 31 — — $ 31 Fixed income 4,182 — — 4,182 U.S. equity securities (large cap stocks) 6,401 — — 6,401 Total investments measured at fair value $ 10,614 — — $ 10,614 |
Schedule of estimated future benefit payments | stimated future benefit payments at December 31, 2016 for the next five years and thereafter are as follows (in thousands): Pension Benefits Post-Retirement Medical Benefits 2017 $ 6,385 $ 560 2018 6,855 609 2019 7,354 633 2020 7,945 680 2021 8,542 768 Thereafter 51,307 3,719 Total $ 88,388 $ 6,969 |
Schedule of effects of one-percentage-point change in assumed health care cost trend rates | A one-percentage-point change in assumed health care cost trend rates would have the following effects on the post-retirement medical plan: (dollars in thousands) 1-Percentage-Point Increase 1-Percentage-Point Decrease Effect on total of service and interest cost components $ 55 $ (47 ) Effect on post-retirement benefit obligation $ 914 $ (790 ) |
Supplemental Employee Retirement Plan [Member] | |
Employee benefit plans | |
Schedule of Pension Plan's funded status and amounts recognized in balance sheets and the components of net pension cost and accrued post-retirement liability | The following provides a reconciliation of benefit obligations, funded status of the SERP, as well as a summary of significant estimates at December 31, 2016 and 2015 : (dollars in thousands) 2016 2015 Change in Benefit Obligation: Benefit obligation at beginning of year $ 16,317 $ 15,926 Service cost 799 814 Interest cost 743 653 Actuarial (gain) loss 3,341 (683 ) Benefits paid (417 ) (393 ) Benefit obligation at end of year $ 20,783 $ 16,317 Changes in Plan Assets: Fair value of plan assets at beginning of year — — Fair value of plan assets at end of year — — Funded Status: Net amount recognized as accrued cost $ (20,783 ) $ (16,317 ) The change in actuarial gain/loss in the SERP was due, in part, to a decrease in the discount rate during 2016, while the discount rate increased during 2015. (in thousands) 2016 2015 Amounts recognized on the balance sheets: Current liabilities $ (419 ) $ (411 ) Non-current liabilities (20,364 ) (15,906 ) Net amount recognized $ (20,783 ) $ (16,317 ) Amounts recognized in regulatory assets consist of: Prior service cost $ 11 $ 36 Net loss 6,463 3,416 Regulatory assets 6,474 3,452 Unfunded accrued cost 14,309 12,865 Net liability recognized $ 20,783 $ 16,317 Changes in plan assets and benefit obligations recognized in regulatory assets consist of: Regulatory asset at beginning of year $ 3,452 $ 4,683 Net (gain) loss 3,339 (683 ) Amortization of prior service credit (25 ) (117 ) Amortization of net loss (292 ) (431 ) Total change in regulatory asset 3,022 (1,231 ) Regulatory asset at end of year $ 6,474 $ 3,452 Net periodic pension cost $ 1,859 $ 2,015 Change in regulatory asset 3,022 (1,231 ) Total recognized in net periodic pension and regulatory asset $ 4,881 $ 784 Estimated amounts that will be amortized from regulatory asset over the next fiscal year: Initial net asset (obligation) $ — $ — Prior service cost (11 ) (25 ) Net loss (777 ) (292 ) Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 20,783 $ 16,317 Accumulated benefit obligation 17,144 14,533 Fair value of plan assets — — Weighted-average assumptions used to determine benefit obligations: Discount rate 4.34 % 4.61 % Rate of compensation increase 4.00 % 4.00 % |
Schedule of components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool | The components of SERP expense, before allocation to the overhead pool, for 2016 , 2015 and 2014 are as follows: (dollars in thousands, except percent) 2016 2015 2014 Components of Net Periodic Benefits Cost: Service cost $ 799 $ 814 $ 768 Interest cost 743 653 615 Amortization of prior service cost 25 117 161 Amortization of net loss 292 431 139 Net periodic pension cost $ 1,859 $ 2,015 $ 1,683 Weighted-average assumptions used to determine net periodic cost: Discount rate 4.61 % 4.15 % 5.05 % Rate of compensation increase 4.00 % 4.00 % 4.00 % |
Schedule of pension and post-retirement plans' investment assets measured at fair value | The following tables set forth by level, within the fair value hierarchy, the Rabbi Trust investment assets measured at fair value as of December 31, 2016 and 2015 : Fair Value as of December 31, 2016 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Assets held in Rabbi Trust: Cash equivalents $ 46 — — $ 46 Fixed income securities 4,801 — — 4,801 Equity securities 7,149 — — 7,149 Total investments measured at fair value $ 11,996 — — $ 11,996 Fair Value as of December 31, 2015 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Assets held in Rabbi Trust: Cash equivalents $ 39 — — $ 39 Fixed income securities 3,903 — — 3,903 Equity securities 5,924 — — 5,924 Total investments measured at fair value $ 9,866 — — $ 9,866 |
Schedule of estimated future benefit payments | Estimated future benefit payments for the SERP at December 31, 2016 for the next ten years are as follows (in thousands): 2017 $ 419 2018 664 2019 731 2020 1,246 2021 1,302 Thereafter 6,714 Total $ 11,076 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Actual Allocation of Plan Assets [Table Text Block] | The Committee approves the target asset allocations. Registrant’s pension and post-retirement plan weighted-average asset allocations at December 31, 2016 and 2015 , by asset category are as follows: Pension Benefits Post-Retirement Medical Benefits Asset Category 2016 2015 2016 2015 Actual Asset Allocations : Equity securities 57 % 55 % 58 % 60 % Debt securities 38 % 40 % 39 % 38 % Real Estate Funds 5 % 5 % — % — % Cash equivalents — % — % 3 % 2 % Total 100 % 100 % 100 % 100 % |
Schedule of share-based compensation expenses | The following table presents share-based compensation expenses for the years ended December 31, 2016 , 2015 and 2014 . These expenses resulting from restricted stock units, including performance awards, are included in administrative and general expenses in AWR's and GSWC’s statements of income: AWR GSWC For The Years Ended December 31, For The Years Ended December 31, (in thousands) 2016 2015 2014 2016 2015 2014 Stock-based compensation related to: Restricted stock units $ 2,538 $ 2,754 $ 2,222 $ 2,118 $ 2,443 $ 1,748 Total stock-based compensation expense $ 2,538 $ 2,754 $ 2,222 $ 2,118 $ 2,443 $ 1,748 |
Schedule of assumptions used to estimate fair value of each option grant on the grant date using the Black-Scholes option-pricing model | will be earned based on Registrant’s TSR compared to the TSR for a specific peer group of investor-owned water companies. A summary of the status of Registrant’s outstanding performance awards to officers as of December 31, 2016 , and changes during the year ended December 31, 2016 , is presented below: Number of Weighted Average Performance awards at January 1, 2016 131,953 $ 30.66 Granted 29,758 40.81 Performance criteria adjustment (8,100 ) 28.09 Vested (51,408 ) 27.82 Performance awards at December 31, 2016 102,203 $ 35.25 |
Summary of stock option activity | A summary of stock option activity as of December 31, 2016 and changes during the year ended December 31, 2016 , are presented below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding at January 1, 2016 150,606 $ 17.39 Granted — — Exercised (12,546 ) 18.75 Forfeited or expired (1,500 ) 16.87 Options outstanding at December 31, 2016 136,560 $ 17.27 1.92 $ 3,863,731 Options exercisable at December 31, 2016 136,560 $ 17.27 1.92 $ 3,863,731 |
Summary of the status of Registrant's outstanding restricted stock units to employees and directors | A summary of the status of Registrant’s outstanding RSUs, excluding performance awards, to employees and directors as of December 31, 2016 , and changes during the year ended December 31, 2016 , is presented below: Number of Restricted Share Units Weighted Average Grant-Date Value Restricted share units at January 1, 2016 111,335 $ 26.21 Granted 37,807 40.52 Vested (40,555 ) 27.03 Forfeited (858 ) 38.06 Restricted share units at December 31, 2016 107,729 $ 30.83 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Schedule of estimated future minimum payments under purchased water supply commitments | GSWC’s estimated future minimum payments under these purchased water supply commitments at December 31, 2016 are as follows (in thousands): 2017 $ 409 2018 409 2019 409 2020 409 2021 409 Thereafter 3,225 Total $ 5,270 |
Schedule of future minimum payments under long-term non-cancelable operating leases | Registrant’s future minimum payments under long-term non-cancelable operating leases at December 31, 2016 are as follows (in thousands): 2017 $ 2,451 2018 2,106 2019 1,680 2020 1,347 2021 341 Thereafter 720 Total $ 8,645 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of reporting segments information | Capital additions reflect capital expenditures paid in cash and exclude U.S. government-funded and third-party prime funded capital expenditures for ASUS and property installed by developers and conveyed to GSWC. As Of And For The Year Ended December 31, 2016 GSWC ASUS AWR Consolidated (dollars in thousands) Water Electric Contracts Parent AWR Operating revenues $ 302,931 $ 35,771 $ 97,385 $ — $ 436,087 Operating income (loss) 87,911 7,908 18,916 (19 ) 114,716 Interest expense, net 19,696 1,337 68 134 21,235 Utility Plant 1,089,031 56,280 5,615 — 1,150,926 Depreciation and amortization expense (1) 35,777 2,027 1,046 — 38,850 Income tax expense/(benefit) 25,894 2,715 6,672 (546 ) 34,735 Capital additions 120,850 7,063 1,954 — 129,867 As Of And For The Year Ended December 31, 2015 GSWC ASUS AWR Consolidated (dollars in thousands) Water Electric Contracts Parent AWR Operating revenues $ 328,511 $ 36,039 $ 94,091 $ — $ 458,641 Operating income (loss) 94,213 6,196 18,091 (11 ) 118,489 Interest expense, net 19,468 1,090 26 46 20,630 Utility Plant 1,005,114 51,002 4,678 — 1,060,794 Depreciation and amortization expense (1) 39,190 1,703 1,140 — 42,033 Income tax expense/(benefit) 30,302 2,170 6,069 (810 ) 37,731 Capital additions 77,440 8,704 1,179 — 87,323 As Of And For The Year Ended December 31, 2014 GSWC ASUS AWR Consolidated (dollars in thousands) Water Electric Contracts Parent AWR Operating revenues $ 326,672 $ 34,387 $ 104,732 $ — $ 465,791 Operating income (loss) 94,014 5,728 19,351 (48 ) 119,045 Interest expense, net 19,370 1,260 142 (82 ) 20,690 Utility Plant 953,678 45,202 4,640 — 1,003,520 Depreciation and amortization expense (1) 38,388 1,466 1,219 — 41,073 Income tax expense/(benefit) 30,410 1,596 7,038 (996 ) 38,048 Capital additions 66,304 4,584 1,665 — 72,553 |
Schedule of reconciliation of total utility plant (a key figure for rate-making) to total consolidated assets | The following table reconciles total utility plant (a key figure for rate-making) to total consolidated assets (in thousands): December 31, 2016 2015 Total utility plant $ 1,150,926 $ 1,060,794 Other assets 319,567 283,165 Total consolidated assets $ 1,470,493 $ 1,343,959 |
Allowance for Doubtful Accoun41
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Allowance for Doubtful Accounts | |
Schedule of provision for doubtful accounts charged to expense and accounts written off, net of recoveries | The table below presents Registrant’s provision for doubtful accounts charged to expense and accounts written off, net of recoveries. Provisions included in 2016 and 2015 for AWR and GSWC are as follows: AWR December 31, (dollars in thousands) 2016 2015 Balance at beginning of year $ 944 $ 892 Provision charged to expense 619 870 Accounts written off, net of recoveries (799 ) (818 ) Balance at end of year $ 764 $ 944 Allowance for doubtful accounts related to accounts receivable-customer $ 702 $ 790 Allowance for doubtful accounts related to other accounts receivable 62 154 Total allowance for doubtful accounts $ 764 $ 944 GSWC December 31, (dollars in thousands) 2016 2015 Balance at beginning of year $ 919 $ 892 Provision charged to expense 627 845 Accounts written off, net of recoveries (785 ) (818 ) Balance at end of year $ 761 $ 919 Allowance for doubtful accounts related to accounts receivable-customer $ 702 $ 790 Allowance for doubtful accounts related to other accounts receivable 59 129 Total allowance for doubtful accounts $ 761 $ 919 |
Supplemental Cash Flow Inform42
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of non-cash financing and investing activities and other cash flow information | The following table sets forth non-cash financing and investing activities and other cash flow information (in thousands). AWR GSWC December 31, December 31, 2016 2015 2014 2016 2015 2014 Taxes and Interest Paid: Income taxes paid $ 10,916 $ 14,817 $ 15,984 $ 8,437 $ 1,541 $ 16,500 Interest paid, net of capitalized interest 22,305 21,822 22,236 22,078 21,797 22,184 Non-Cash Transactions: Accrued payables for investment in utility plant $ 17,236 $ 20,655 $ 13,147 $ 17,207 $ 20,655 $ 13,141 Property installed by developers and conveyed 5,395 3,284 800 5,395 3,284 800 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Details) customer in Thousands | 12 Months Ended | |||||
Dec. 31, 2016USD ($)customerregistrant | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Oct. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Oct. 27, 2015USD ($) | |
Summary of significant accounting policies | ||||||
Deferred Finance Costs, Net | $ 4,271,000 | $ 4,641,000 | ||||
Related Party Transaction, Amounts of Transaction | $ 3,900,000 | 2,600,000 | $ 2,700,000 | |||
Basis of Presentation: | ||||||
Number of registrants filing combined report | registrant | 2 | |||||
Impairment of Long-Lived Assets | ||||||
Impairment of long-lived assets | $ 0 | 0 | 0 | |||
Goodwill | ||||||
Goodwill arose from acquisition of subcontractor's business | 1,100,000 | 1,100,000 | ||||
Sales and Use Taxes: | ||||||
Non-income tax assessments accounted on a gross basis | $ 16,801,000 | 16,636,000 | $ 16,722,000 | |||
Military Utility Privatization Subsidiaries | ||||||
Summary of significant accounting policies | ||||||
Period of Fixed Price Contracts to Maintain Water Systems at Various Military Bases | 50 years | |||||
GSWC | ||||||
Summary of significant accounting policies | ||||||
Deferred Finance Costs, Net | $ 4,271,000 | $ 4,641,000 | ||||
Property and Depreciation | ||||||
Aggregate composite rate for depreciation (as a percent) | 2.90% | 3.20% | 3.20% | |||
Depreciation on transportation equipment | $ 259,000 | $ 641,000 | $ 678,000 | |||
Estimated useful lives of utility plant, as authorized by the CPUC | ||||||
Generation | 40 years | |||||
Interest | ||||||
Amount recorded in AFUDC | $ 101,000 | 694,000 | 24,000 | |||
Alternative-Revenue Programs | ||||||
Number of months within which expected additional revenue collection is recorded | 24 months | |||||
Advances for Construction and Contributions in aid of Constructions | ||||||
Period for refund of advances for construction | 40 years | |||||
Fair Value of Financial Instruments | ||||||
Long-term debt-GSWC | $ 423,124,000 | |||||
Sales and Use Taxes: | ||||||
Franchise fees billed to customers and recorded as operating revenue | 3,500,000 | 3,800,000 | 3,700,000 | |||
Non-income tax assessments accounted on a gross basis | 15,444,000 | 15,244,000 | 15,221,000 | |||
GSWC | Level 1 | ||||||
Fair Value of Financial Instruments | ||||||
Long-term debt-GSWC | 0 | |||||
GSWC | Level 3 | ||||||
Fair Value of Financial Instruments | ||||||
Long-term debt-GSWC | 0 | |||||
GSWC | Carrying Amount | ||||||
Fair Value of Financial Instruments | ||||||
Long-term debt-GSWC | 325,582,000 | 325,853,000 | ||||
GSWC | Fair Value | ||||||
Fair Value of Financial Instruments | ||||||
Long-term debt-GSWC | 403,844,000 | |||||
GSWC | Fair Value | Level 2 | ||||||
Fair Value of Financial Instruments | ||||||
Long-term debt-GSWC | $ 423,124,000 | |||||
GSWC | Minimum [Member] | ||||||
Estimated useful lives of utility plant, as authorized by the CPUC | ||||||
Source of water supply | 30 years | |||||
Pumping | 25 years | |||||
Water treatment | 20 years | |||||
Transmission and distribution | 25 years | |||||
Other plant | 7 years | |||||
GSWC | Maximum [Member] | ||||||
Estimated useful lives of utility plant, as authorized by the CPUC | ||||||
Source of water supply | 50 years | |||||
Pumping | 40 years | |||||
Water treatment | 35 years | |||||
Transmission and distribution | 55 years | |||||
Other plant | 40 years | |||||
GSWC | Notes Payable, Other Payables [Member] | ||||||
Related Party Transactions | ||||||
Debt Instrument, Face Amount | $ 40,000,000 | |||||
Debt Instrument, Maximum Borrowing Capacity | 40,000,000 | |||||
GSWC | Purchase, production, distribution and sale of water | ||||||
Nature of Operations: | ||||||
Number of customers served | customer | 261 | |||||
Interest | ||||||
Weighted cost of capital (as a percent) | 8.34% | |||||
GSWC | Electric | ||||||
Nature of Operations: | ||||||
Number of customers served | customer | 24 | |||||
Sales and Use Taxes: | ||||||
Cost Of Debt Percent | 6.96% | |||||
American States Utility Services [Member] | ||||||
Sales and Use Taxes: | ||||||
Non-income tax assessments accounted on a gross basis | $ 309,000 | 367,000 | $ 490,000 | |||
American States Utility Services [Member] | Notes Payable, Other Payables [Member] | ||||||
Related Party Transactions | ||||||
Debt Instrument, Face Amount | 10,000,000 | |||||
Debt Instrument, Maximum Borrowing Capacity | $ 10,000,000 | |||||
American States Utility Services [Member] | Military Utility Privatization Subsidiaries | ||||||
Nature of Operations: | ||||||
Period of fixed price contracts to operate and maintain the water and/or wastewater systems at various military bases | 50 years | |||||
AWR | ||||||
Related Party Transactions | ||||||
Maximum borrowing capacity on line of credit | $ 150,000,000 | $ 100,000,000 | ||||
Notes Receivable | GSWC | Notes Payable, Other Payables [Member] | ||||||
Related Party Transactions | ||||||
Notes Receivable, Related Parties, Current | $ 0 | |||||
Notes Receivable | AWR | Notes Payable, Other Payables [Member] | ||||||
Related Party Transactions | ||||||
Notes Receivable, Related Parties, Current | $ 0 | $ 0 | ||||
Sales [Member] | GSWC | Purchase, production, distribution and sale of water | ||||||
Nature of Operations: | ||||||
Percentage of total revenues | 90.00% | 90.00% | 90.00% | |||
Syndicated revolving credit facility | AWR | Syndicated revolving credit facility | ||||||
Related Party Transactions | ||||||
Maximum borrowing capacity on line of credit | $ 150,000,000 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2005 | Jul. 31, 2005 | Dec. 31, 2016 | Dec. 31, 2015 | |
Regulatory matters: | ||||
Regulatory Asset Not Accruing Carrying Costs | $ 56,900 | |||
Pension Costs and Other Postretirement Benefit Costs | ||||
Regulatory matters: | ||||
Regulatory Asset Not Accruing Carrying Costs | 26,800 | |||
General Rate Case Memorandum Accounts [Member] | ||||
Regulatory matters: | ||||
Total | 9,500 | |||
GSWC | ||||
Regulatory matters: | ||||
Total | 146,281 | $ 132,696 | ||
GSWC | Various refunds to customers | ||||
Regulatory matters: | ||||
Total | (5,866) | (4,766) | ||
GSWC | WRAM, net of MCBA | ||||
Regulatory matters: | ||||
Total | 47,340 | 45,171 | ||
GSWC | Costs deferred for future recovery on Aerojet case | ||||
Regulatory matters: | ||||
Total | 11,820 | 12,699 | ||
Regulatory Asset Recovery Periods | 20 years | |||
GSWC | Pension Costs and Other Postretirement Benefit Costs | ||||
Regulatory matters: | ||||
Total | 28,118 | 21,996 | ||
GSWC | Gain (Loss) on Derivative Instruments [Member] | ||||
Regulatory matters: | ||||
Total | 4,901 | 7,053 | ||
GSWC | Flow-through taxes, net | ||||
Regulatory matters: | ||||
Total | 20,134 | 16,176 | ||
GSWC | Low income rate assistance balancing accounts | ||||
Regulatory matters: | ||||
Total | 8,272 | 8,699 | ||
GSWC | Other regulatory assets, net | ||||
Regulatory matters: | ||||
Total | 17,633 | 21,235 | ||
GSWC | General Rate Case Memorandum Accounts [Member] | ||||
Regulatory matters: | ||||
Total | $ 13,929 | $ 4,433 | ||
Minimum [Member] | General Rate Case Memorandum Accounts [Member] | ||||
Regulatory matters: | ||||
Regulatory Asset Recovery Periods | 12 months | |||
Minimum [Member] | GSWC | General Rate Case Memorandum Accounts [Member] | ||||
Regulatory matters: | ||||
Regulatory Asset Recovery Periods | 12 months | |||
Maximum [Member] | General Rate Case Memorandum Accounts [Member] | ||||
Regulatory matters: | ||||
Regulatory Asset Recovery Periods | 24 months | |||
Maximum [Member] | GSWC | Costs deferred for future recovery on Aerojet case | ||||
Regulatory matters: | ||||
Regulatory Asset Recovery Periods | 20 years | |||
Maximum [Member] | GSWC | General Rate Case Memorandum Accounts [Member] | ||||
Regulatory matters: | ||||
Regulatory Asset Recovery Periods | 24 months |
Regulatory Matters 2 (Details)
Regulatory Matters 2 (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Regulatory matters: | ||||
Regulated Operating Revenue, Water | $ 302,931 | $ 328,511 | $ 326,672 | |
General Rate Case Memorandum Accounts [Member] | ||||
Regulatory matters: | ||||
Under (over) collection | $ 9,500 | |||
General Rate Case Memorandum Accounts [Member] | Minimum [Member] | ||||
Regulatory matters: | ||||
Recovery period | 12 months | |||
General Rate Case Memorandum Accounts [Member] | Maximum [Member] | ||||
Regulatory matters: | ||||
Recovery period | 24 months | |||
WRAM | ||||
Regulatory matters: | ||||
Over collection | $ 19,700 | |||
Deferred Revenue | 510 | |||
GSWC | ||||
Regulatory matters: | ||||
Under (over) collection | 146,281 | 132,696 | ||
Regulated Operating Revenue, Water | 302,931 | 328,511 | $ 326,672 | |
GSWC | General Rate Case Memorandum Accounts [Member] | ||||
Regulatory matters: | ||||
Under (over) collection | $ 13,929 | 4,433 | ||
GSWC | General Rate Case Memorandum Accounts [Member] | Minimum [Member] | ||||
Regulatory matters: | ||||
Recovery period | 12 months | |||
GSWC | General Rate Case Memorandum Accounts [Member] | Maximum [Member] | ||||
Regulatory matters: | ||||
Recovery period | 24 months | |||
GSWC | WRAM, net of MCBA | ||||
Regulatory matters: | ||||
Commercial paper, term | 90 days | |||
Amount billed to customers as surcharges | $ 18,400 | |||
Under (over) collection | $ 47,340 | 45,171 | ||
Under-collection balances as a percentage of adopted annual revenues | 15.00% | |||
Recovery period for under-collection balances greater than 15% of adopted annual revenues | 18 months | |||
Annual surcharges as a percentage of the last authorized revenue requirement | 10.00% | |||
GSWC | WRAM, net of MCBA | Minimum [Member] | ||||
Regulatory matters: | ||||
Recovery period for under-collection balances greater than 15% of adopted annual revenues | 19 months | 12 months | ||
GSWC | WRAM, net of MCBA | Maximum [Member] | ||||
Regulatory matters: | ||||
Alternative revenue program | 24 months | |||
Recovery period for under-collection balances that are up to 15% of adopted annual revenues | 36 months | |||
Recovery period for under-collection balances greater than 15% of adopted annual revenues | 24 months | |||
GSWC | Other Regulatory Assets (Liabilities) [Member] | ||||
Regulatory matters: | ||||
Under (over) collection | $ 800 | |||
GSWC | WRAM | ||||
Regulatory matters: | ||||
Under (over) collection | 34,700 | |||
Regulated Operating Revenue, Water | 910 | |||
Deferred Revenue | $ 1,400 | |||
GSWC | Modified Cost Balancing Account | ||||
Regulatory matters: | ||||
Under (over) collection | $ 12,600 |
Regulatory Matters 3 (Details)
Regulatory Matters 3 (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Regulatory matters: | ||
Other Liabilities, Current | $ 11,297 | $ 10,209 |
GSWC | ||
Regulatory matters: | ||
Under (over) collection | 146,281 | 132,696 |
Other Liabilities, Current | 10,925 | 9,921 |
Other Regulatory Assets Net [Member] | GSWC | ||
Regulatory matters: | ||
Under (over) collection | 17,633 | 21,235 |
Low income rate assistance balancing accounts | GSWC | ||
Regulatory matters: | ||
Under (over) collection | 8,272 | 8,699 |
Pension Costs and Other Postretirement Benefit Costs | GSWC | ||
Regulatory matters: | ||
Regulatory assets | 26,800 | |
Under (over) collection | 28,118 | $ 21,996 |
Two-way pension balancing account | Pension Costs and Other Postretirement Benefit Costs | GSWC | ||
Regulatory matters: | ||
Regulatory assets | 1,300 | |
Two-way pension balancing account | Purchase, production, distribution and sale of water | Pension Costs and Other Postretirement Benefit Costs | GSWC | ||
Regulatory matters: | ||
Regulatory assets | 1,900 | |
Two-way pension balancing account | Electric | Pension Costs and Other Postretirement Benefit Costs | GSWC | ||
Regulatory matters: | ||
Regulatory assets | $ (617) |
Regulatory Matters 4 (Details)
Regulatory Matters 4 (Details) - GSWC - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2005 | Jul. 31, 2005 | Dec. 31, 2016 | |
Costs deferred for future recovery on Aerojet case | |||
Regulatory matters: | |||
Increase in Revenue Requirement, Recoverable through Surcharges | $ 21.3 | ||
Recovery period | 20 years | ||
Reimbursement to recover costs | $ 17.5 | ||
Costs deferred for future recovery on Aerojet case | Maximum [Member] | |||
Regulatory matters: | |||
Recovery period | 20 years | ||
Water Revenue Adjustment Mechanism Net of Modified Cost Balancing Account [Member] | |||
Regulatory matters: | |||
Amount billed to customers as surcharges | $ 18.4 |
Regulatory Matters 5 (Details)
Regulatory Matters 5 (Details) - GSWC - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Regulatory matters: | ||
Total | $ 146,281 | $ 132,696 |
Pension Costs and Other Postretirement Benefit Costs | ||
Regulatory matters: | ||
Regulatory asset | 26,800 | |
Total | 28,118 | 21,996 |
Pension Costs and Other Postretirement Benefit Costs | Two-way pension balancing account | ||
Regulatory matters: | ||
Regulatory asset | $ 1,300 | |
Water Revenue Adjustment Mechanism Net of Modified Cost Balancing Account [Member] | ||
Regulatory matters: | ||
Commercial paper, term | 90 days | |
Total | $ 47,340 | 45,171 |
Low income rate assistance balancing accounts | ||
Regulatory matters: | ||
Commercial paper, term | 90 days | |
Discount percentage for qualified low-income water customers | 15.00% | |
Discount percentage for qualified low-income electric customers | 20.00% | |
Total | $ 8,272 | $ 8,699 |
Regulatory Matters 6 (Details)
Regulatory Matters 6 (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
GSWC | ||
Regulatory matters: | ||
Net regulatory assets | $ 146,281 | $ 132,696 |
Regulatory Matters 7 (Details)
Regulatory Matters 7 (Details) - GSWC - CPUC Subpoena | 1 Months Ended |
Dec. 31, 2011Audit | |
Regulatory matters: | |
Number of separate independent audits of procurement practices agreed as a part of the settlement agreement | 3 |
Period of separate independent audits of procurement practices agreed as a part of settlement agreement | 10 years |
Regulatory Matters 9 (Details)
Regulatory Matters 9 (Details) - GSWC renewable_energy in Thousands, $ in Thousands | 1 Months Ended | ||
Dec. 31, 2012renewable_energy | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Regulatory matters: | |||
Net regulatory assets | $ | $ 146,281 | $ 132,696 | |
Renewables Portfolio Standard | |||
Regulatory matters: | |||
Agreement period to purchase renewable energy credits | 10 years | ||
Number of renewable energy credits that would be purchased | renewable_energy | 582 |
Utility Plant and Intangible 52
Utility Plant and Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | $ 1,620,325 | $ 1,527,537 | |
Less - accumulated depreciation | (532,753) | (529,698) | |
Construction work in progress | (63,354) | (62,955) | |
Net utility plant | 1,150,926 | 1,060,794 | $ 1,003,520 |
American States Utility Services [Member] | Intangible Assets [Member] | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 571 | 571 | |
Water | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 1,526,316 | 1,439,056 | |
Water | Land | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 15,393 | 15,299 | |
Water | Intangible Assets [Member] | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 36,291 | 34,848 | |
Water | Source of water supply | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 86,775 | 86,914 | |
Water | Pumping | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 169,983 | 161,668 | |
Water | Water treatment | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 74,980 | 72,238 | |
Water | Transmission and distribution | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 1,014,925 | 941,651 | |
Water | General | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 127,969 | 126,438 | |
Electric | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 94,009 | 88,481 | |
Electric | Intangible Assets [Member] | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 1,200 | 1,200 | |
Electric | Transmission and distribution | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 71,112 | 66,121 | |
Electric | Generation | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 12,583 | 12,563 | |
Electric | General | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 10,314 | 9,797 | |
GSWC | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 1,608,428 | 1,516,505 | |
Less - accumulated depreciation | (524,927) | (522,749) | |
Construction work in progress | (61,810) | (62,360) | |
Net utility plant | 1,145,311 | 1,056,116 | |
GSWC | Water | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 1,514,419 | 1,428,024 | |
Net utility plant | 1,089,031 | 1,005,114 | 953,678 |
GSWC | Water | Land | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 15,393 | 15,299 | |
GSWC | Water | Intangible Assets [Member] | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 36,273 | 34,830 | |
GSWC | Water | Source of water supply | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 86,775 | 86,914 | |
GSWC | Water | Pumping | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 169,983 | 161,668 | |
GSWC | Water | Water treatment | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 74,980 | 72,238 | |
GSWC | Water | Transmission and distribution | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 1,014,925 | 941,651 | |
GSWC | Water | General | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 116,090 | 115,424 | |
GSWC | Electric | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 94,009 | 88,481 | |
Net utility plant | 56,280 | 51,002 | $ 45,202 |
GSWC | Electric | Transmission and distribution | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 71,112 | 66,121 | |
GSWC | Electric | Generation | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | 12,583 | 12,563 | |
GSWC | Electric | General | |||
Utility plant utilized in continuing operations by major asset class | |||
Total utility plant, at cost | $ 10,314 | $ 9,797 |
Utility Plant and Intangible 53
Utility Plant and Intangible Assets 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Intangible assets | ||||
Property, Plant and Equipment, Gross | $ 1,620,325 | $ 1,527,537 | ||
Total amortized intangible assets | 37,107 | 35,664 | ||
Less - accumulated amortization | (28,001) | (26,196) | ||
Intangible assets, net of amortization | 9,106 | 9,468 | ||
Unamortized intangible assets | [1] | 409 | 409 | |
Amortization of intangible assets | 1,900 | 1,800 | $ 1,900 | |
Estimated future consolidated amortization expenses related to intangible assets | ||||
2,014 | 1,922 | |||
2,015 | 1,922 | |||
2,016 | 1,737 | |||
2,017 | 1,609 | |||
2,018 | 1,485 | |||
Total | $ 8,675 | |||
Conservation | ||||
Intangible assets | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | |||
Total amortized intangible assets | $ 9,496 | 9,496 | ||
Water and water service rights | ||||
Intangible assets | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 30 years | |||
Total amortized intangible assets | [2] | $ 8,124 | 8,124 | |
Water planning studies | ||||
Intangible assets | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | |||
Total amortized intangible assets | $ 19,487 | 18,044 | ||
GSWC | ||||
Intangible assets | ||||
Property, Plant and Equipment, Gross | 1,608,428 | 1,516,505 | ||
Total amortized intangible assets | 37,678 | 36,235 | ||
Less - accumulated amortization | (28,108) | (26,291) | ||
Intangible assets, net of amortization | 9,570 | 9,944 | ||
Unamortized intangible assets | [1] | 427 | 427 | |
GSWC | Conservation | ||||
Intangible assets | ||||
Total amortized intangible assets | 9,496 | 9,496 | ||
GSWC | Water and water service rights | ||||
Intangible assets | ||||
Total amortized intangible assets | [2] | 8,695 | 8,695 | |
GSWC | Water planning studies | ||||
Intangible assets | ||||
Total amortized intangible assets | 19,487 | 18,044 | ||
Intangible Assets [Member] | American States Utility Services [Member] | ||||
Intangible assets | ||||
Property, Plant and Equipment, Gross | $ 571 | $ 571 | ||
[1] | The intangible assets not subject to amortization primarily consist of organization and consent fees. | |||
[2] | Includes intangible assets of $571,000 for contracted services included in "Other Property and Investments" on the consolidated balance sheets as of December 31, 2016 and 2015. |
Utility Plant and Intangible 54
Utility Plant and Intangible Assets 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of the beginning and ending aggregate carrying amount of the asset retirement obligations | ||
Obligation at the beginning of the period | $ 4,157 | $ 3,234 |
Additional liabilities incurred | 121 | 7 |
Liabilities settled | (112) | |
Accretion | 227 | 209 |
Obligation at the end of the period | $ 4,393 | 4,157 |
Asset Retirement Obligation, Revision of Estimate | $ 707 |
Derivative Instruments (Details
Derivative Instruments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)MWhquote | Dec. 31, 2015USD ($) | |
Purchase power contract | ||
Derivative instruments | ||
Number of broker quotes received to determine fair value of derivative instrument | quote | 1 | |
GSWC | ||
Derivative instruments | ||
Derivative Activity Volume | MWh | 352,000 | |
GSWC | Purchase power contract | ||
Changes in the fair value of the derivative | ||
Balance, at beginning of the period | $ (7,053) | $ (3,339) |
Unrealized gain (loss) on purchased power contracts | 2,152 | (3,714) |
Balance, at end of the period | $ (4,901) | $ (7,053) |
Minimum | GSWC | Purchase power contract | ||
Derivative instruments | ||
Derivative, Term of Contract | 3 years | |
Maximum [Member] | GSWC | Purchase power contract | ||
Derivative instruments | ||
Derivative, Term of Contract | 5 years |
Military Privatization (Details
Military Privatization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Military Privatization | |||
Billings in excess of costs and estimated earnings on contracts | $ 2,263 | $ 3,764 | |
Receivables from the U.S. government: | |||
Less: allowance for doubtful accounts | (764) | (944) | $ (892) |
Pretax income | |||
Increase in pretax operating income | $ 114,716 | 118,489 | 119,045 |
Military Utility Privatization Subsidiaries | |||
Military Privatization | |||
Period of fixed price contracts to maintain water systems at various military bases | 50 years | ||
Initial contract period | 2 years | ||
Price redetermination interval | 3 years | ||
Revenues recognized net of billings to date | |||
Revenues (costs and estimated earnings) recognized on uncompleted contracts | $ 104,830 | 111,397 | |
Less: Billings to date | (43,161) | (61,662) | |
Total | 61,669 | 49,735 | |
Amount included in accompanying balance sheets | |||
Costs and estimated earnings in excess of billings on uncompleted contracts | 63,932 | 53,499 | |
Billings in excess of costs and estimated earnings on uncompleted contracts | (2,263) | (3,764) | |
Total | 61,669 | 49,735 | |
Receivables from the U.S. government: | |||
Billed receivables from the U.S. government | 8,467 | 5,861 | |
Unbilled Contract Receivables, Current | 6,691 | 1,309 | |
Pretax income | |||
Government Contract Receivable | 15,158 | 7,170 | |
American States Utility Services [Member] | Military Utility Privatization Subsidiaries | |||
Pretax income | |||
Increase in pretax operating income | 18,916 | 18,091 | $ 19,351 |
Reportable Legal Entities [Member] | American States Utility Services [Member] | Military Utility Privatization Subsidiaries | |||
Military Privatization | |||
Revenue Recognition, Retrospective Rate-Setting Systems, Amount | $ 421 | $ 3,000 |
Earnings Per Share and Capita57
Earnings Per Share and Capital Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Basic | ||||
Net Income | $ 59,743 | $ 60,484 | $ 61,058 | |
Less: Distributed earnings to common shareholders | 33,408 | 32,690 | 32,125 | |
Less: Distributed earnings to participating securities | 187 | 207 | 177 | |
Undistributed earnings | 26,148 | 27,587 | 28,756 | |
Undistributed earnings allocated to common shareholders | 26,003 | 27,414 | 28,599 | |
Undistributed earnings allocated to participating securities | 173 | 157 | ||
Total income available to common shareholders, basic | $ 59,411 | $ 60,104 | $ 60,724 | |
Weighted average Common Shares outstanding, basic | 36,552,000 | 37,389,000 | 38,658,000 | |
Basic earnings per Common Share: | ||||
Income from continuing operations (in dollars per share) | $ 1.63 | $ 1.61 | $ 1.57 | |
Net Income (in dollars per share) | $ 1.63 | $ 1.61 | $ 1.57 | |
Diluted | ||||
Total income available to common shareholders, basic | $ 59,411 | $ 60,104 | $ 60,724 | |
Undistributed earnings for dilutive stock options | 145 | 173 | 157 | |
Total common shareholders earnings, diluted | $ 59,556 | $ 60,277 | $ 60,881 | |
Weighted average Common Shares outstanding, basic | 36,552,000 | 37,389,000 | 38,658,000 | |
Stock-based compensation (in shares) | [1] | 198,000 | 225,000 | 222,000 |
Weighted average common shares outstanding, diluted | 36,750,000 | 37,614,000 | 38,880,000 | |
Diluted earnings per Common Share: | ||||
Income from continuing operations (in dollars per share) | $ 1.62 | $ 1.60 | $ 1.57 | |
Net Income (in dollars per share) | $ 1.62 | $ 1.60 | $ 1.57 | |
Stock option and restricted stock option outstanding | ||||
Options outstanding (in shares) | 136,560 | |||
Restricted Stock Units | ||||
Share based compensation arrangement | ||||
Restricted stock units outstanding (in shares) | 209,932 | |||
[1] | (1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 136,560 stock options and 209,932 restricted stock units, including performance awards, at December 31, 2016 were deemed to be outstanding in accordance with accounting guidance on earnings per share. |
Earnings Per Share and Capita58
Earnings Per Share and Capital Stock 2 (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 19, 2015 | |
Capital stock | ||||
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | $ (173,000) | $ (157,000) | ||
Additional disclosure | ||||
Common Shares issued under DRP and the 2000 and 2008 Employee Plans | 56,900 | 53,612 | 74,145 | |
Value of Common Shares issued under DRP and the 2000 and 2008 Employee Plans | $ 589,000 | |||
Common Shares authorized for issuance but unissued under DRP | 1,055,948 | |||
Common Shares authorized for issuance but unissued under 401(k) Plan | 387,300 | |||
Common Shares issued as a result of the exercise of stock options | 12,546 | 66,458 | 37,006 | |
Proceeds from Stock Options Exercised, Distributed to Subsidiaries | $ 0 | |||
GSWC | ||||
Additional disclosure | ||||
Value of Common Shares issued under DRP and the 2000 and 2008 Employee Plans | $ 872,000 | |||
Common Stock [Member] | ||||
Additional disclosure | ||||
Common Shares issued under DRP and the 2000 and 2008 Employee Plans | 111,000 | |||
Value of Common Shares issued under DRP and the 2000 and 2008 Employee Plans | $ 589,000 | |||
Common Shares repurchased in the open market under DRP and 401(k) Plan | 1,905,000 | 545,000 | ||
Common Stock [Member] | GSWC | ||||
Additional disclosure | ||||
Value of Common Shares issued under DRP and the 2000 and 2008 Employee Plans | $ 872,000 | |||
2014 and 2015 Stock Repurchase Programs [Member] | AWR | ||||
Additional disclosure | ||||
Common Shares repurchased in the open market under DRP and 401(k) Plan | 1,905,000 | 545,000 | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 2,450,000 |
Dividend Limitations (Details)
Dividend Limitations (Details) | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Dividend limitations | ||||
Common shareholder’s equity | $ 494,297,000 | $ 465,945,000 | $ 506,801,000 | $ 492,404,000 |
Retained Earnings (Accumulated Deficit) | 247,065,000 | 220,923,000 | ||
GSWC | ||||
Dividend limitations | ||||
Fixed amount in computing maximum ability to pay dividends | $ 21,000,000 | |||
Percentage of consolidated net income plus the aggregate net cash proceeds received from capital stock offerings or other instruments convertible into capital stock | 100.00% | |||
Amount available to pay dividends under the most restrictive of the Note Agreements | $ 374,800,000 | |||
Dividends paid | 25,450,000 | 62,000,000 | 52,000,000 | |
Common shareholder’s equity | $ 446,770,000 | 423,730,000 | 435,190,000 | 437,613,000 |
Ratio of Indebtedness to Net Capital | 0.4680 | |||
Retained Earnings (Accumulated Deficit) | 184,935,000 | |||
GSWC | Maximum [Member] | ||||
Dividend limitations | ||||
Ratio of Indebtedness to Net Capital | 0.6667 | |||
AWR | ||||
Dividend limitations | ||||
Common shareholder’s equity | $ 494,297,000 | 465,945,000 | ||
Subsidiaries [Member] | ||||
Dividend limitations | ||||
Dividends paid | 33,800,000 | 52,000,000 | ||
Earnings Reinvested in the Business | ||||
Dividend limitations | ||||
Common shareholder’s equity | 247,065,000 | 220,923,000 | 253,602,000 | 238,443,000 |
Earnings Reinvested in the Business | GSWC | ||||
Dividend limitations | ||||
Common shareholder’s equity | 206,288,000 | $ 184,935,000 | $ 199,583,000 | $ 203,892,000 |
Retained Earnings (Accumulated Deficit) | 206,288,000 | |||
Earnings Reinvested in the Business | American States Utility Services [Member] | ||||
Dividend limitations | ||||
Retained Earnings (Accumulated Deficit) | $ 57,200,000 |
Bank Debt (Details)
Bank Debt (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2016 | Sep. 30, 2016 | |
Short-term borrowing activities (excluding letters of credit) | ||||
Balance outstanding at the end of the period | $ 90,000,000 | $ 28,000,000 | ||
Short-term borrowing (excluding letters of credit) | ||||
Short-term borrowing activities (excluding letters of credit) | ||||
Balance outstanding at the end of the period | $ 90,000,000 | $ 28,000,000 | ||
Interest Rate at the end of the period (as a percent) | 1.46% | 1.09% | ||
Average amount outstanding | $ 59,261,000 | $ 4,112,000 | ||
Weighted Average Annual Interest Rate (as a percent) | 1.20% | 0.92% | ||
Maximum Amount Outstanding | $ 96,000,000 | $ 37,000,000 | ||
Syndicated revolving credit facility | ||||
Bank debt | ||||
Variable rate basis | Euro rate | |||
Syndicated revolving credit facility | Minimum | ||||
Short-term borrowing activities (excluding letters of credit) | ||||
Interest coverage ratio | 325.00% | |||
Syndicated revolving credit facility | Maximum [Member] | ||||
Short-term borrowing activities (excluding letters of credit) | ||||
Total funded debt ratio | 65.00% | |||
Syndicated revolving credit facility | Letter of Credit Irrevocable Franchise Agreement with City of Rancho Cordova [Member] | ||||
Bank debt | ||||
Letter of credit, amount | $ 15,000,000 | |||
AWR | ||||
Bank debt | ||||
Maximum borrowing capacity | $ 150,000,000 | $ 100,000,000 | ||
Short-term borrowing activities (excluding letters of credit) | ||||
Balance outstanding at the end of the period | $ 90,000,000 | $ 28,000,000 | ||
AWR | Syndicated revolving credit facility | ||||
Short-term borrowing activities (excluding letters of credit) | ||||
Interest coverage ratio | 707.00% | |||
Total funded debt ratio | 46.00% | |||
AWR | Syndicated revolving credit facility | Minimum | ||||
Short-term borrowing activities (excluding letters of credit) | ||||
Interest coverage ratio | 325.00% | |||
AWR | Syndicated revolving credit facility | Maximum [Member] | ||||
Short-term borrowing activities (excluding letters of credit) | ||||
Total funded debt ratio | 65.00% | |||
AWR | Syndicated revolving credit facility | Letters of credit | ||||
Bank debt | ||||
Maximum borrowing capacity | $ 25,000,000 | |||
Letter of credit, amount | $ 9,900,000 | |||
Letter of credit fee (as a percent) | 0.65% | |||
AWR | Syndicated revolving credit facility | Letter of Credit Business Automobile Insurance Policy Security [Member] | ||||
Bank debt | ||||
Letter of credit, amount | $ 340,000 | |||
AWR | Syndicated revolving credit facility | Letter of Credit - Purchase of power | ||||
Bank debt | ||||
Letter of credit, amount | 585,000,000 | |||
AWR | Syndicated revolving credit facility | Irrevocable Letter of Credit - Edison Settlement agreement | ||||
Bank debt | ||||
Letter of credit, amount | 3,600,000 | |||
AWR | Syndicated revolving credit facility | Letter of Credit - American Recovery and Reinvestment Act | ||||
Bank debt | ||||
Letter of credit, amount | $ 5,400,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) | Jul. 16, 2014USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015 | Dec. 23, 2014USD ($) |
GSWC | ||||
Long-term debt | ||||
Ratio of Indebtedness to Net Capital | 0.4680 | |||
Ratio of Indebtedness to EBITDA | 2.9 | |||
Redemption price of debt instrument, as a percentage of principal amount | 100.00% | |||
GSWC | Maximum [Member] | ||||
Long-term debt | ||||
Ratio of Indebtedness to Net Capital | 0.6667 | |||
Ratio of Indebtedness to EBITDA | 8 | |||
Private Placement Notes [Member] | GSWC | ||||
Long-term debt | ||||
Interest coverage ratio | 400.00% | |||
Private Placement Notes [Member] | GSWC | Minimum | ||||
Long-term debt | ||||
Interest coverage ratio | 200.00% | |||
Private placement notes | ||||
Long-term debt | ||||
Interest rate (as a percent) | 9.56% | 9.56% | ||
Private placement notes | GSWC | ||||
Long-term debt | ||||
Debt Instrument, Face Amount | $ 28,000,000 | |||
Interest rate (as a percent) | 9.56% | 9.56% | ||
Debt Instrument Redemption Premium above Treasury Yield | 5500.00% | |||
Private placement notes | GSWC | Maximum [Member] | ||||
Long-term debt | ||||
Redemption premium after 2021 (as a percent) | 3.00% | |||
Private placement notes | American States Utility Services [Member] | ||||
Long-term debt | ||||
Interest rate (as a percent) | 9.56% | |||
Debt issues other than 9.56% Notes and Senior Notes issued to Co-Bank | GSWC | Maximum [Member] | ||||
Long-term debt | ||||
Debt Instrument Redemption Premium as Percentage of Par Value | 0.00% | |||
Senior Notes issued to Co-Bank | GSWC | ||||
Long-term debt | ||||
Additional spread on premium (as a percent) | 0.50% | |||
American Recovery and Reinvestment Act Obligation due 2033 | GSWC | ||||
Long-term debt | ||||
Interest rate (as a percent) | 2.50% | |||
Notes Payable 3.45 Percent Due 2029 [Member] | ||||
Long-term debt | ||||
Interest rate (as a percent) | 3.45% | 3.45% | ||
Notes Payable 3.45 Percent Due 2029 [Member] | GSWC | ||||
Long-term debt | ||||
Debt Instrument, Face Amount | $ 15,000,000 | |||
Interest rate (as a percent) | 3.45% | 3.45% | ||
Notes Payable 6.87 Percent Due 2023 [Member] | GSWC | ||||
Long-term debt | ||||
Principal amount of notes redeemed | $ 5,000,000 | |||
Interest rate (as a percent) | 6.87% | |||
Notes Payable 7 Percent Due 2023 [Member] | GSWC | ||||
Long-term debt | ||||
Principal amount of notes redeemed | $ 10,000,000 | |||
Interest rate (as a percent) | 7.00% |
Long-Term Debt 2 (Details)
Long-Term Debt 2 (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Annual maturities of all long-term debt, including capitalized leases | ||
Total | $ 325,582 | $ 325,853 |
GSWC | ||
Annual maturities of all long-term debt, including capitalized leases | ||
2,014 | 330 | |
2,015 | 325 | |
2,016 | 40,322 | |
2,017 | 346 | |
2,018 | 365 | |
Thereafter | 283,894 | |
Total | $ 325,582 |
Long-Term Debt 3 (Details)
Long-Term Debt 3 (Details) | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 23, 2014USD ($) | Oct. 31, 2009USD ($) | |
Long-term debt | |||||
Loan proceeds received for reimbursement of costs of conversion | $ 0 | $ 0 | $ 14,846,000 | ||
Notes Payable 3.45 Percent Due 2029 [Member] | |||||
Long-term debt | |||||
Interest rate (as a percent) | 3.45% | 3.45% | |||
GSWC | |||||
Long-term debt | |||||
Ratio of Indebtedness to EBITDA | 2.9 | ||||
Loan proceeds received for reimbursement of costs of conversion | $ 0 | $ 0 | $ 14,846,000 | ||
GSWC | Maximum [Member] | |||||
Long-term debt | |||||
Ratio of Indebtedness to EBITDA | 8 | ||||
GSWC | Private Placement Notes [Member] | |||||
Long-term debt | |||||
Debt Instrument Covenant Interest Coverage Ratio | 400.00% | ||||
GSWC | Private Placement Notes [Member] | Minimum [Member] | |||||
Long-term debt | |||||
Debt Instrument Covenant Interest Coverage Ratio | 200.00% | ||||
GSWC | Debt issues other than 9.56% Notes and Senior Notes issued to Co-Bank | Maximum [Member] | |||||
Long-term debt | |||||
Debt Instrument Redemption Premium as Percentage of Par Value | 0.00% | ||||
GSWC | Notes Payable 3.45 Percent Due 2029 [Member] | |||||
Long-term debt | |||||
Debt Instrument, Face Amount | $ 15,000,000 | ||||
Interest rate (as a percent) | 3.45% | 3.45% | |||
GSWC | American Recovery and Reinvestment Act Obligation due 2033 | |||||
Long-term debt | |||||
Maximum amount of loan that can be borrowed | $ 9,000,000 | ||||
Interest rate (as a percent) | 2.50% | ||||
Maturity term | 20 years | ||||
Loan proceeds received for reimbursement of costs of conversion | $ 8,600,000 | ||||
GSWC | American Recovery and Reinvestment Act Obligation due 2033 | Letters of credit to CDHP | |||||
Long-term debt | |||||
Letters of credit issued, percentage of maximum available under facility | 80.00% | ||||
Amount of debt issued | $ 5,400,000 |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Taxes on income | |||
Unrecognized Tax Benefits | $ 0 | ||
Interest Expense | 21,992,000 | $ 21,088,000 | $ 21,617,000 |
Deferred tax assets: | |||
Regulatory-liability-related: ITC and excess deferred taxes | 903,000 | 952,000 | |
Regulatory-liability-related: California Corp Franchise Tax | 3,365,000 | 4,530,000 | |
Other nonproperty-related | 1,993,000 | 2,486,000 | |
Contributions and advances | 7,464,000 | 8,026,000 | |
Deferred tax assets | 13,725,000 | 15,994,000 | |
Deferred tax liabilities: | |||
Fixed assets | (200,378,000) | (178,004,000) | |
Regulatory-asset-related: depreciation and other | (24,402,000) | (21,658,000) | |
Deferred Tax Liabilities, Regulatory Assets and Liabilities Related to State Franchise Tax | (2,033,000) | (2,440,000) | |
Other nonproperty-related | 0 | (66,000) | |
Balancing and memorandum accounts | (7,010,000) | (1,824,000) | |
Deferred charges | (4,429,000) | (4,849,000) | |
Deferred tax liabilities | (238,252,000) | (208,841,000) | |
Accumulated deferred income taxes - net | (224,527,000) | (192,847,000) | |
Current | |||
Federal | 2,297,000 | 21,866,000 | 5,595,000 |
State | 4,798,000 | 5,442,000 | 137,000 |
Total current tax expense | 7,095,000 | 27,308,000 | 5,732,000 |
Deferred | |||
Federal | 26,715,000 | 8,948,000 | 24,815,000 |
State | 925,000 | 1,475,000 | 7,501,000 |
Total deferred tax expense | 27,640,000 | 10,423,000 | 32,316,000 |
Reconciliations of the effective tax rates to the federal statutory rate | |||
Federal taxes on pretax income at statutory rate | 33,067,000 | 34,375,000 | 34,687,000 |
Flow-through on removal costs | (78,000) | (1,560,000) | (643,000) |
Effective Income Tax Rate Reconciliation, Tax Credit, Investment, Amount | (83,000) | (88,000) | (91,000) |
Income tax expense/(benefit) | 34,735,000 | 37,731,000 | 38,048,000 |
Pretax income from continuing operations | $ 94,478,000 | $ 98,215,000 | $ 99,106,000 |
Effective income tax rate (as a percent) | 36.80% | 38.40% | 38.40% |
Increase (decrease) in taxes resulting from: | $ 3,029,000 | $ 4,843,000 | $ 4,781,000 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Depreciation, Amount | 994,000 | 626,000 | 651,000 |
Income Tax Reconciliation Flow Through on Pension Costs | (247,000) | 267,000 | (507,000) |
Income Tax Reconciliation Cost of Removal | (2,068,000) | (929,000) | (1,571,000) |
Income Tax Examination, Penalties Accrued | 0 | 0 | 0 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 121,000 | 197,000 | 741,000 |
Income Tax Examination, Penalties Expense | 0 | 0 | 0 |
Tax Authorities | |||
Taxes on income | |||
Net interest receivable | 461,000 | 504,000 | 504,000 |
Recognized interest income | 0 | ||
Consolidated Entities [Member] | Tax Authorities | |||
Taxes on income | |||
Recognized interest income | 8,000 | 19,000 | |
AWR Parent | |||
Reconciliations of the effective tax rates to the federal statutory rate | |||
Income tax expense/(benefit) | (546,000) | (810,000) | (996,000) |
Pretax income from continuing operations | 59,197,000 | 59,674,000 | 60,062,000 |
GSWC | |||
Taxes on income | |||
Interest Expense | 21,782,000 | 20,998,000 | 21,524,000 |
Deferred tax assets: | |||
Regulatory-liability-related: ITC and excess deferred taxes | 903,000 | 952,000 | |
Regulatory-liability-related: California Corp Franchise Tax | 3,365,000 | 4,530,000 | |
Other nonproperty-related | 1,901,000 | 1,997,000 | |
Contributions and advances | 7,712,000 | 8,026,000 | |
Deferred tax assets | 13,881,000 | 15,505,000 | |
Deferred tax liabilities: | |||
Fixed assets | (203,133,000) | (179,660,000) | |
Regulatory-asset-related: depreciation and other | (24,402,000) | (21,658,000) | |
Deferred Tax Liabilities, Regulatory Assets and Liabilities Related to State Franchise Tax | (2,208,000) | (3,051,000) | |
Other nonproperty-related | (68,000) | (65,000) | |
Balancing and memorandum accounts | (7,271,000) | (1,824,000) | |
Deferred charges | (4,597,000) | (4,905,000) | |
Deferred tax liabilities | (241,679,000) | (211,163,000) | |
Accumulated deferred income taxes - net | (227,798,000) | (195,658,000) | |
Current | |||
Federal | (3,115,000) | 16,196,000 | 408,000 |
State | 3,625,000 | 5,557,000 | (2,754,000) |
Total current tax expense | 510,000 | 21,753,000 | (2,346,000) |
Deferred | |||
Federal | 25,864,000 | 8,536,000 | 24,373,000 |
State | 2,235,000 | 2,183,000 | 9,979,000 |
Total deferred tax expense | 28,099,000 | 10,719,000 | 34,352,000 |
Reconciliations of the effective tax rates to the federal statutory rate | |||
Federal taxes on pretax income at statutory rate | 26,452,000 | 28,022,000 | 27,952,000 |
Flow-through on removal costs | 0 | (1,268,000) | (55,000) |
Effective Income Tax Rate Reconciliation, Tax Credit, Investment, Amount | (82,000) | (88,000) | (91,000) |
Income tax expense/(benefit) | 28,609,000 | 32,472,000 | 32,006,000 |
Pretax income from continuing operations | $ 75,578,000 | $ 80,063,000 | $ 79,863,000 |
Effective income tax rate (as a percent) | 37.90% | 40.60% | 40.10% |
Increase (decrease) in taxes resulting from: | $ 3,118,000 | $ 5,151,000 | $ 4,693,000 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Depreciation, Amount | 994,000 | 626,000 | 651,000 |
Income Tax Reconciliation Flow Through on Pension Costs | (247,000) | 267,000 | (507,000) |
Income Tax Reconciliation Cost of Removal | (2,068,000) | (929,000) | (1,571,000) |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 442,000 | 691,000 | 934,000 |
GSWC | Tax Authorities | |||
Taxes on income | |||
Net interest receivable | 499,000 | 512,000 | 472,000 |
Interest Expense | $ 3,000 | ||
Recognized interest income | $ 7,000 | 14,000 | |
Tax Year 2013 [Member] | |||
Taxes on income | |||
Deferred Tax Liabilities Related to Repair-And-Maintenance Deductions | $ 30,800,000 |
Employee Benefit Plans Employee
Employee Benefit Plans Employee Benefit Plans 1 (Details) | 12 Months Ended | |
Dec. 31, 2016participant | Dec. 31, 2015item | |
Pension Plan | ||
Employee benefit plans | ||
Minimum age for eligibility under the Pension Plan | item | 21 | |
Minimum period of service for eligibility under the Pension Plan | 5 years | |
Normal retirement benefit (as a percent) | 2.00% | |
Number of highest consecutive years' average earnings used in computing retirement benefit | 5 years | |
Maximum number of years of credited service considered in determining retirement benefit | 40 years | |
Number of participants in the Pension Plan | participant | 957 | |
Pension Plan | ||
Employee benefit plans | ||
Percentage of participant's eligible pay contributed to the plan by the employer | 5.25% | |
Eligibility for employer matching contributions, period of service | 3 years |
Employee Benefit Plans Employ66
Employee Benefit Plans Employee Benefit Plans 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits | |||
Change in Projected Benefit Obligation: | |||
Projected benefit obligation at beginning of year | $ 168,934 | $ 185,184 | |
Service cost | 5,094 | 6,276 | $ 5,643 |
Interest cost | 7,910 | 7,686 | 7,520 |
Actuarial (gain) loss | (4,162) | 24,413 | |
Benefits/expenses paid | (5,736) | (5,799) | |
Projected benefit obligation at end of year | 180,364 | 168,934 | 185,184 |
Changes in Plan Assets: | |||
Fair value of plan assets at beginning of year | 142,174 | 140,561 | |
Actual return on plan assets | 9,182 | 673 | |
Employer contributions | 5,252 | 6,739 | |
Benefits/expenses paid | (5,736) | (5,799) | |
Fair value of plan assets at end of year | 150,872 | 142,174 | 140,561 |
Funded Status: | |||
Net amount recognized as accrued pension cost | (29,492) | (26,760) | |
Post-Retirement Medical Benefits | |||
Change in Projected Benefit Obligation: | |||
Projected benefit obligation at beginning of year | 9,393 | 12,326 | |
Service cost | 247 | 340 | 348 |
Interest cost | 371 | 435 | 495 |
Actuarial (gain) loss | 715 | 3,375 | |
Benefits/expenses paid | (494) | (333) | |
Projected benefit obligation at end of year | 8,802 | 9,393 | 12,326 |
Changes in Plan Assets: | |||
Fair value of plan assets at beginning of year | 10,614 | 10,723 | |
Actual return on plan assets | 418 | 115 | |
Employer contributions | 0 | 109 | |
Benefits/expenses paid | (494) | (333) | |
Fair value of plan assets at end of year | 10,538 | 10,614 | $ 10,723 |
Funded Status: | |||
Net amount recognized as accrued pension cost | $ 1,736 | $ 1,221 |
Employee Benefit Plans Employ67
Employee Benefit Plans Employee Benefit Plans 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amounts recognized on the balance sheets: | |||||
Non-current liabilities | $ 49,856 | $ 42,666 | |||
Pension Benefits | |||||
Amounts recognized on the balance sheets: | |||||
Non-current assets | 0 | 0 | |||
Current liabilities | 0 | 0 | |||
Non-current liabilities | 29,492 | 26,760 | |||
Net amount recognized | (29,492) | (26,760) | |||
Amounts recognized in regulatory assets consist of: | |||||
Initial net obligation | 0 | 0 | |||
Prior service cost (credit) | 0 | 49 | |||
Net (gain) loss | (25,828) | (21,921) | |||
Regulatory assets (liabilities) | $ 21,970 | $ 39,170 | $ 39,170 | 25,828 | 21,970 |
Unfunded accrued pension cost | (3,664) | (4,790) | |||
Net liability (asset) recognized | 29,492 | 26,760 | |||
Changes in plan assets and benefit obligations recognized in regulatory assets: | |||||
Regulatory asset at beginning of year | 21,970 | 39,170 | |||
Net loss (gain) | (4,818) | 15,292 | |||
Amortization of initial net obligation | 0 | 0 | |||
Amortization of prior service (cost) credit | (49) | (118) | |||
Amortization of net gain (loss) | (911) | (1,790) | |||
Total change in regulatory asset | 3,858 | (17,200) | |||
Regulatory asset (liability) at end of year | 25,828 | 21,970 | 39,170 | ||
Net periodic pension costs | 4,126 | 6,075 | 4,383 | ||
Change in regulatory asset | 3,858 | (17,200) | |||
Total recognized in net periodic pension cost and regulatory asset (liability) | 7,984 | (11,125) | |||
Estimated amounts that will be amortized from regulatory asset over the next fiscal year: | |||||
Prior service (cost) credit | 0 | (49) | |||
Net gain (loss) | (835) | (510) | |||
Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: | |||||
Projected benefit obligation | 180,364 | 168,934 | |||
Accumulated benefit obligation | 165,998 | 155,469 | |||
Fair value of plan assets | $ 150,872 | $ 142,174 | |||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||
Discount rate | 4.44% | 4.65% | |||
Post-Retirement Medical Benefits | |||||
Amounts recognized on the balance sheets: | |||||
Non-current assets | $ 1,736 | $ 1,221 | |||
Current liabilities | 0 | 0 | |||
Non-current liabilities | 0 | 0 | |||
Net amount recognized | 1,736 | 1,221 | |||
Amounts recognized in regulatory assets consist of: | |||||
Initial net obligation | 0 | 0 | |||
Prior service cost (credit) | 0 | (34) | |||
Net (gain) loss | 5,515 | 5,572 | |||
Regulatory assets (liabilities) | (5,606) | (3,125) | (3,125) | (5,515) | (5,606) |
Unfunded accrued pension cost | (3,779) | (4,385) | |||
Net liability (asset) recognized | (1,736) | (1,221) | |||
Changes in plan assets and benefit obligations recognized in regulatory assets: | |||||
Regulatory asset at beginning of year | (5,606) | (3,125) | |||
Net loss (gain) | 644 | 2,997 | |||
Amortization of initial net obligation | 0 | 0 | |||
Amortization of prior service (cost) credit | 34 | 200 | |||
Amortization of net gain (loss) | 701 | 316 | |||
Total change in regulatory asset | 91 | (2,481) | |||
Regulatory asset (liability) at end of year | (5,515) | (5,606) | (3,125) | ||
Net periodic pension costs | (606) | (234) | $ 278 | ||
Change in regulatory asset | 91 | (2,481) | |||
Total recognized in net periodic pension cost and regulatory asset (liability) | (515) | (2,715) | |||
Estimated amounts that will be amortized from regulatory asset over the next fiscal year: | |||||
Prior service (cost) credit | 0 | 34 | |||
Net gain (loss) | $ 679 | $ 599 | |||
Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: | |||||
Projected benefit obligation | 8,802 | 9,393 | |||
Fair value of plan assets | $ 10,538 | $ 10,614 | |||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||
Discount rate | 3.97% | 4.25% | |||
Minimum | Pension Benefits | |||||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||
Rate of compensation increase | 3.00% | ||||
Maximum | Pension Benefits | |||||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||
Rate of compensation increase | 8.00% |
Employee Benefit Plans Employ68
Employee Benefit Plans Employee Benefit Plans 4 (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Pension Benefits | ||||
Components of Net Periodic Benefits Cost: | ||||
Service cost | $ 5,094 | $ 6,276 | $ 5,643 | |
Interest cost | 7,910 | 7,686 | 7,520 | |
Expected return on plan assets | (9,838) | (9,795) | (8,898) | |
Amortization of transition | 0 | 0 | 0 | |
Amortization of prior service cost (credit) | 49 | 118 | 118 | |
Amortization of actuarial (gain) loss | 911 | 1,790 | 0 | |
Net periodic pension cost under accounting standards | 4,126 | 6,075 | 4,383 | |
Regulatory adjustment - over collection | (859) | (523) | (1,622) | |
Total expense recognized, before allocation to overhead pool | $ 4,985 | $ 6,598 | $ 6,005 | |
Weighted-average assumptions used to determine net periodic cost: | ||||
Discount rate | 4.65% | 4.25% | 5.10% | |
Expected long-term return on plan assets | 7.00% | 7.00% | 7.00% | |
Rate of compensation increase | 4.00% | 4.00% | ||
Expected long-term return on plan assets | 7.00% | 7.00% | 7.00% | |
Post-Retirement Medical Benefits | ||||
Components of Net Periodic Benefits Cost: | ||||
Service cost | $ 247 | $ 340 | $ 348 | |
Interest cost | 371 | 435 | 495 | |
Expected return on plan assets | (489) | (493) | (453) | |
Amortization of transition | 0 | 0 | 418 | |
Amortization of prior service cost (credit) | (34) | (200) | (200) | |
Amortization of actuarial (gain) loss | (701) | (316) | (330) | |
Net periodic pension cost under accounting standards | (606) | (234) | 278 | |
Regulatory adjustment - over collection | 0 | 0 | 0 | |
Total expense recognized, before allocation to overhead pool | $ (606) | $ (234) | $ 278 | |
Weighted-average assumptions used to determine net periodic cost: | ||||
Discount rate | 4.25% | 3.80% | 4.65% | |
Union plan | ||||
Weighted-average assumptions used to determine net periodic cost: | ||||
Expected long-term return on plan assets | 7.00% | [1] | 7.00% | 7.00% |
Expected long-term return on plan assets | 7.00% | [1] | 7.00% | 7.00% |
Non-union plan | ||||
Weighted-average assumptions used to determine net periodic cost: | ||||
Expected long-term return on plan assets | 4.20% | [1] | 4.20% | 4.20% |
Expected long-term return on plan assets | 4.20% | [1] | 4.20% | 4.20% |
Minimum | Pension Benefits | ||||
Weighted-average assumptions used to determine net periodic cost: | ||||
Rate of compensation increase | 3.00% | |||
Maximum | Pension Benefits | ||||
Weighted-average assumptions used to determine net periodic cost: | ||||
Rate of compensation increase | 8.00% | |||
[1] | *7.0% for union plan, 4.2% for non-union, net of income taxes in 2016, 2015 and 2014. |
Employee Benefit Plans Employ69
Employee Benefit Plans Employee Benefit Plans 5 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits | |||
Regulatory Adjustment: | |||
Regulatory adjustment - over collection | $ (859) | $ (523) | $ (1,622) |
GSWC | Pension Benefits | |||
Regulatory Adjustment: | |||
Regulatory adjustment - over collection | (859) | $ (523) | $ (1,600) |
Pension Costs and Other Postretirement Benefit Costs | GSWC | |||
Regulatory Adjustment: | |||
Regulatory assets | 26,800 | ||
Two-way pension balancing account | Pension Costs and Other Postretirement Benefit Costs | GSWC | |||
Regulatory Adjustment: | |||
Regulatory assets | $ 1,300 |
Employee Benefit Plans Employ70
Employee Benefit Plans Employee Benefit Plans 6 (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | ||
Actual and Target Asset Allocations | ||
Actual asset allocations | 100.00% | 100.00% |
Target asset allocations | 100.00% | |
Pension Benefits | Equity securities | ||
Actual and Target Asset Allocations | ||
Actual asset allocations | 57.00% | 55.00% |
Target asset allocations | 60.00% | |
Pension Benefits | Debt securities | ||
Actual and Target Asset Allocations | ||
Actual asset allocations | 38.00% | 40.00% |
Target asset allocations | 40.00% | |
Pension Benefits | Real Estate Funds | ||
Actual and Target Asset Allocations | ||
Actual asset allocations | 5.00% | 5.00% |
Pension Benefits | Cash equivalents | ||
Actual and Target Asset Allocations | ||
Actual asset allocations | 0.00% | 0.00% |
Post-Retirement Medical Benefits | ||
Actual and Target Asset Allocations | ||
Actual asset allocations | 100.00% | 100.00% |
Target asset allocations | 100.00% | |
Post-Retirement Medical Benefits | Equity securities | ||
Actual and Target Asset Allocations | ||
Actual asset allocations | 58.00% | 60.00% |
Target asset allocations | 60.00% | |
Post-Retirement Medical Benefits | Debt securities | ||
Actual and Target Asset Allocations | ||
Actual asset allocations | 39.00% | 38.00% |
Target asset allocations | 40.00% | |
Post-Retirement Medical Benefits | Real Estate Funds | ||
Actual and Target Asset Allocations | ||
Actual asset allocations | 0.00% | 0.00% |
Post-Retirement Medical Benefits | Cash equivalents | ||
Actual and Target Asset Allocations | ||
Actual asset allocations | 3.00% | 2.00% |
Employee Benefit Plans Employ71
Employee Benefit Plans Employee Benefit Plans 7 (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Employee benefit plans | |||
Fair Value | $ 150,872 | $ 142,174 | $ 140,561 |
Unfunded Commitments | 0 | 0 | |
Cash equivalents | |||
Employee benefit plans | |||
Fair Value | 500 | 469 | |
Unfunded Commitments | 0 | ||
Fixed income fund | |||
Employee benefit plans | |||
Fair Value | 57,674 | 56,218 | |
Unfunded Commitments | 0 | ||
U.S. small/mid cap funds | |||
Employee benefit plans | |||
Fair Value | 24,312 | 21,219 | |
Unfunded Commitments | 0 | ||
U.S. large cap funds | |||
Employee benefit plans | |||
Fair Value | 46,175 | 42,395 | |
Unfunded Commitments | 0 | ||
International funds | |||
Employee benefit plans | |||
Fair Value | 14,869 | 14,455 | |
Unfunded Commitments | 0 | ||
Total equity funds | |||
Employee benefit plans | |||
Fair Value | 85,356 | 78,069 | |
Unfunded Commitments | 0 | 0 | |
Real estate funds | |||
Employee benefit plans | |||
Fair Value | $ 7,342 | 7,418 | |
Unfunded Commitments | $ 0 |
Employee Benefit Plans Employ72
Employee Benefit Plans Employee Benefit Plans 8 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Post-Retirement Medical Benefits | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | $ 10,538 | $ 10,614 | $ 10,723 |
Post-Retirement Medical Benefits | Level 1 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 10,538 | 10,614 | |
Post-Retirement Medical Benefits | Level 2 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
Post-Retirement Medical Benefits | Level 3 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
Post-Retirement Medical Benefits | Cash equivalents | Level 1 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 360 | 31 | |
Post-Retirement Medical Benefits | Cash equivalents | Level 2 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
Post-Retirement Medical Benefits | Cash equivalents | Level 3 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
Post-Retirement Medical Benefits | Fixed income fund | Level 1 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 4,072 | 4,182 | |
Post-Retirement Medical Benefits | Fixed income fund | Level 2 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
Post-Retirement Medical Benefits | Fixed income fund | Level 3 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
Post-Retirement Medical Benefits | U.S. large cap funds | Level 1 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 6,106 | 6,401 | |
Post-Retirement Medical Benefits | U.S. large cap funds | Level 2 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
Post-Retirement Medical Benefits | U.S. large cap funds | Level 3 | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 0 | 0 | |
Fair Value | Post-Retirement Medical Benefits | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 10,538 | 10,614 | |
Fair Value | Post-Retirement Medical Benefits | Cash equivalents | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 360 | 31 | |
Fair Value | Post-Retirement Medical Benefits | Fixed income fund | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | 4,072 | 4,182 | |
Fair Value | Post-Retirement Medical Benefits | U.S. large cap funds | |||
Employee benefit plans | |||
Fair value of post-retirement plan assets | $ 6,106 | $ 6,401 | |
Minimum | Fixed income fund | |||
Employee benefit plans | |||
Maturity period of investments | 1 year | ||
Maximum | Fixed income fund | |||
Employee benefit plans | |||
Maturity period of investments | 20 years |
Employee Benefit Plans Employ73
Employee Benefit Plans Employee Benefit Plans 9 (Details) - Pension Benefits - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Employee benefit plans | ||
Employer contributions | $ 5,252 | $ 6,739 |
Expected future employer's contribution | $ 6,200 |
Employee Benefit Plans Employ74
Employee Benefit Plans Employee Benefit Plans 10 (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Pension Benefits | |
Employee benefit plans | |
2,017 | $ 6,385 |
2,018 | 6,855 |
2,019 | 7,354 |
2,020 | 7,945 |
2,021 | 8,542 |
Thereafter | 51,307 |
Total | 88,388 |
Post-Retirement Medical Benefits | |
Employee benefit plans | |
2,017 | 560 |
2,018 | 609 |
2,019 | 633 |
2,020 | 680 |
2,021 | 768 |
Thereafter | 3,719 |
Total | $ 6,969 |
Employee Benefit Plans Employ75
Employee Benefit Plans Employee Benefit Plans 11 (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Healthcare Cost Trend Rate | ||||
Initial health care cost for employees under age of 65 (as a percent) | 6.70% | |||
Ultimate health care cost for employees under age of 65 (as a percent) | 4.70% | |||
Initial Health care cost for employees of age 65 and over (as a percent) | 6.30% | |||
Ultimate health care cost for employees of age 65 and over (as a percent) | 4.50% | |||
Effects of one-percentage-point change in assumed health care cost trend rates | ||||
Effect on total of service and interest cost components -1 Percentage Point Increase | $ 55 | |||
Effect on total of service and interest cost components -1 Percentage Point Decrease | (47) | |||
Effect on post-retirement benefit obligation -1 Percentage Point Increase | 914 | |||
Effect on post-retirement benefit obligation -1 Percentage Point Decrease | $ (790) | |||
Union plan | ||||
Employee benefit plans | ||||
Expected long-term return on plan assets | 7.00% | [1] | 7.00% | 7.00% |
Non-union plan | ||||
Employee benefit plans | ||||
Expected long-term return on plan assets | 4.20% | [1] | 4.20% | 4.20% |
[1] | *7.0% for union plan, 4.2% for non-union, net of income taxes in 2016, 2015 and 2014. |
Employee Benefit Plans Employ76
Employee Benefit Plans Employee Benefit Plans 12 (Details) - SERP - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Balance in Rabbi Trust | ||
Balance in Rabbi Trust | $ 12,000 | |
Fair value of assets held in Rabbi Trust | 0 | $ 0 |
Rabbi Trust | Level 3 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Rabbi Trust | Level 1 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 11,996 | 9,866 |
Rabbi Trust | Level 2 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Rabbi Trust | Cash equivalents | Level 3 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Rabbi Trust | Cash equivalents | Level 1 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 46 | 39 |
Rabbi Trust | Cash equivalents | Level 2 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Rabbi Trust | Fixed income fund | Level 3 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Rabbi Trust | Fixed income fund | Level 1 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 4,801 | 3,903 |
Rabbi Trust | Fixed income fund | Level 2 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Rabbi Trust | Equity securities | Level 3 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Rabbi Trust | Equity securities | Level 1 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 7,149 | 5,924 |
Rabbi Trust | Equity securities | Level 2 | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 0 | 0 |
Fair Value | Rabbi Trust | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 11,996 | 9,866 |
Fair Value | Rabbi Trust | Cash equivalents | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 46 | 39 |
Fair Value | Rabbi Trust | Fixed income fund | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | 4,801 | 3,903 |
Fair Value | Rabbi Trust | Equity securities | ||
Balance in Rabbi Trust | ||
Fair value of assets held in Rabbi Trust | $ 7,149 | $ 5,924 |
Employee Benefit Plans Employ77
Employee Benefit Plans Employee Benefit Plans 13 (Details) - SERP - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in Benefit Obligation: | |||
Projected benefit obligation at beginning of year | $ 16,317 | $ 15,926 | |
Service cost | 799 | 814 | $ 768 |
Interest cost | 743 | 653 | 615 |
Actuarial (gain) loss | 3,341 | (683) | |
Benefits/expenses paid | (417) | (393) | |
Projected benefit obligation at end of year | 20,783 | 16,317 | $ 15,926 |
Changes in Plan Assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | |
Funded Status: | |||
Net amount recognized as accrued pension cost | $ (20,783) | $ (16,317) |
Employee Benefit Plans Employ78
Employee Benefit Plans Employee Benefit Plans 14 (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amounts recognized on the balance sheets: | ||||||
Non-current liabilities | $ 49,856 | $ 42,666 | ||||
SERP | ||||||
Amounts recognized on the balance sheets: | ||||||
Current liabilities | 419 | 411 | ||||
Non-current liabilities | 20,364 | 15,906 | ||||
Net amount recognized | (20,783) | (16,317) | ||||
Amounts recognized in regulatory assets consist of: | ||||||
Prior service cost (credit) | 11 | 36 | ||||
Net (gain) loss | (6,463) | (3,416) | ||||
Regulatory assets (liabilities) | $ 3,452 | $ 4,683 | $ 4,683 | 6,474 | 3,452 | $ 4,683 |
Unfunded accrued pension cost | (14,309) | (12,865) | ||||
Net liability (asset) recognized | 20,783 | 16,317 | ||||
Changes in plan assets and benefit obligations recognized in regulatory assets: | ||||||
Regulatory asset at beginning of year | 3,452 | 4,683 | ||||
Net loss (gain) | (3,339) | 683 | ||||
Amortization of prior service (cost) credit | (25) | (117) | ||||
Amortization of net gain (loss) | (292) | (431) | ||||
Total change in regulatory asset | 3,022 | (1,231) | ||||
Regulatory asset (liability) at end of year | 6,474 | 3,452 | 4,683 | |||
Net periodic pension costs | 1,859 | 2,015 | $ 1,683 | |||
Change in regulatory asset | 3,022 | (1,231) | ||||
Total recognized in net periodic pension cost and regulatory asset (liability) | 4,881 | 784 | ||||
Estimated amounts that will be amortized from regulatory asset over the next fiscal year: | ||||||
Initial net asset (obligation) | 0 | 0 | ||||
Prior service cost | (11) | (25) | ||||
Net gain (loss) | $ (777) | $ (292) | ||||
Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets: | ||||||
Projected benefit obligation | 20,783 | 16,317 | $ 15,926 | |||
Accumulated benefit obligation | 17,144 | 14,533 | ||||
Fair value of plan assets | $ 0 | $ 0 | ||||
Weighted-average assumptions used to determine benefit obligations at December 31: | ||||||
Discount rate | 4.34% | 4.61% | ||||
Rate of compensation increase | 4.00% | 4.00% |
Employee Benefit Plans Employ79
Employee Benefit Plans Employee Benefit Plans 15 (Details) - SERP - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Net Periodic Benefits Cost: | |||
Service cost | $ 799 | $ 814 | $ 768 |
Interest cost | 743 | 653 | 615 |
Amortization of prior service cost (credit) | 25 | 117 | 161 |
Amortization of actuarial (gain) loss | 292 | 431 | 139 |
Net periodic pension cost under accounting standards | $ 1,859 | $ 2,015 | $ 1,683 |
Weighted-average assumptions used to determine net periodic cost: | |||
Discount rate | 4.61% | 4.15% | 5.05% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Employee Benefit Plans Employ80
Employee Benefit Plans Employee Benefit Plans 16 (Details) - SERP $ in Thousands | Dec. 31, 2016USD ($) |
Employee benefit plans | |
2,017 | $ 419 |
2,018 | 664 |
2,019 | 731 |
2,020 | 1,246 |
2,021 | 1,302 |
Thereafter | 6,714 |
Total | $ 11,076 |
Employee Benefit Plans Employ81
Employee Benefit Plans Employee Benefit Plans 17 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Employer's contribution | $ 2,200 | $ 2,100 | $ 1,900 |
Employer discretionary contribution amount | $ 951 | $ 755 | $ 568 |
Stock-Based Compensation Plan82
Stock-Based Compensation Plans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)stock_planshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | |
Stock compensation plans | |||
Number of stock incentive plans | stock_plan | 5 | ||
Stock-based compensation recognized in the income statement, before taxes | $ 2,538 | $ 2,754 | $ 2,222 |
Immediate vesting for employees of certain age and above | 55 years | ||
GSWC | |||
Stock compensation plans | |||
Stock-based compensation recognized in the income statement, before taxes | $ 2,118 | 2,443 | 1,748 |
Capitalized equity-based compensation cost | $ 155 | $ 369 | $ 255 |
Nonqualified stock options | |||
Stock compensation plans | |||
Granted (in shares) | shares | 0 | 0 | 0 |
Restricted Stock Units | Employees and directors | |||
Stock compensation plans | |||
Stock-based compensation recognized in the income statement, before taxes | $ 2,538 | $ 2,754 | $ 2,222 |
Restricted Stock Units | Employees and directors | GSWC | |||
Stock compensation plans | |||
Stock-based compensation recognized in the income statement, before taxes | $ 2,118 | $ 2,443 | $ 1,748 |
Performance awards | |||
Stock compensation plans | |||
Vesting period | 3 years | ||
2000 and 2008 Employee Plans | Nonqualified stock options | |||
Stock compensation plans | |||
Expiration term | 10 years | ||
Vesting period | 3 years | ||
Percentage of rights vesting in the first two years from the date of grant | 33.00% | ||
Percentage of rights vesting in the third year from the date of grant | 34.00% | ||
2000 and 2008 Employee Plans | Restricted Stock Units | |||
Stock compensation plans | |||
Vesting period | 3 years | ||
Common stock entitled to be received under each award | shares | 1 | ||
Percentage of rights vesting in the first two years from the date of grant | 33.00% | ||
Percentage of rights vesting in the third year from the date of grant | 34.00% | ||
2000 and 2008 Employee Plans | Performance awards | |||
Stock compensation plans | |||
Vesting period | 3 years | ||
Percentage of rights vesting in the first two years from the date of grant | 33.00% | ||
Percentage of rights vesting in the third year from the date of grant | 34.00% | ||
2003 Directors Plan | Nonqualified stock options | |||
Stock compensation plans | |||
Expiration term | 10 years | ||
Vesting period | 3 years | ||
Weighted Average [Member] | |||
Stock compensation plans | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months 10 days | ||
Weighted Average [Member] | Restricted Stock Units | |||
Stock compensation plans | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 5 months 2 days |
Stock-Based Compensation Plan83
Stock-Based Compensation Plans 2 (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Options | |||
Exercised (in shares) | (12,546) | (66,458) | (37,006) |
Options outstanding at the end of the period (in shares) | 136,560 | ||
Additional disclosure | |||
Cash proceeds from the exercise of stock options | $ 235,000 | $ 1,198,000 | $ 589,000 |
Tax benefit for the tax deduction from awards exercised | (581,000) | $ (877,000) | $ (533,000) |
Unrecognized compensation cost | $ 879,000 | ||
Maximum [Member] | |||
Additional disclosure | |||
Percentage of target amount of performance shares | 200.00% | ||
Minimum | |||
Additional disclosure | |||
Percentage of target amount of performance shares | 0.00% | ||
Weighted Average [Member] | |||
Additional disclosure | |||
Expected recognition period for unrecognized compensation cost | 1 year 6 months 10 days | ||
Stock options | |||
Number of Options | |||
Options Outstanding at the beginning of the period (in shares) | 150,606 | ||
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (12,546) | ||
Forfeited or expired (in shares) | (1,500) | ||
Options outstanding at the end of the period (in shares) | 136,560 | 150,606 | |
Options exercisable at the end of the period (in shares) | 136,560 | ||
Weighted Average Exercise Price | |||
Options outstanding at the beginning of the period (in dollars per share) | $ 17.39 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 18.75 | ||
Forfeited or expired (in dollars per share) | 16.87 | ||
Options outstanding at the end of the period (in dollars per share) | 17.27 | $ 17.39 | |
Options exercisable at the end of the period (in dollars per share) | $ 17.27 | ||
Additional disclosure | |||
Weighted Average Remaining Contractual Term, Options outstanding | 1 year 11 months 3 days | ||
Weighted Average Remaining Contractual Term, Options Exercisable | 1 year 11 months 3 days | ||
Aggregate Intrinsic Value, Options outstanding | $ 3,863,731 | ||
Aggregate Intrinsic Value, Options Exercisable | 3,863,731 | ||
Total intrinsic value of options exercised | 308,000 | $ 1,457,000 | $ 596,000 |
Tax benefit for the tax deduction from awards exercised | $ (877,000) | (533,000) | |
Restricted Stock Units | |||
Additional disclosure | |||
Unrecognized compensation cost related to performance awards | $ 800,000 | ||
Number of Restricted/Performance Share Units | |||
Restricted share units at the beginning of the period (in shares) | 111,335 | ||
Granted (in shares) | 37,807 | ||
Vested (in shares) | (40,555) | ||
Forfeited (in shares) | (858) | ||
Restricted share units at the end of the period (in shares) | 107,729 | 111,335 | |
Weighted Average Grant-Date Value | |||
Restricted share units at the beginning of the period (in dollars per share) | $ 26.21 | ||
Granted (in dollars per share) | 40.52 | ||
Vested (in dollars per share) | 27.03 | ||
Forfeited (in dollars per share) | 38.06 | ||
Restricted share units at the end of the period (in dollars per share) | $ 30.83 | $ 26.21 | |
Restricted Stock Units | Weighted Average [Member] | |||
Additional disclosure | |||
Expected recognition period for unrecognized compensation cost | 1 year 5 months 2 days | ||
Performance awards | |||
Additional disclosure | |||
Vesting period | 3 years | ||
Period to meet the performance goals | 3 years | ||
Number of Restricted/Performance Share Units | |||
Restricted share units at the beginning of the period (in shares) | 131,953 | ||
Granted (in shares) | 29,758 | ||
Vested (in shares) | (51,408) | ||
Restricted share units at the end of the period (in shares) | 102,203 | 131,953 | |
Weighted Average Grant-Date Value | |||
Restricted share units at the beginning of the period (in dollars per share) | $ 30.66 | ||
Granted (in dollars per share) | 40.81 | ||
Vested (in dollars per share) | 27.82 | ||
Restricted share units at the end of the period (in dollars per share) | $ 35.25 | $ 30.66 | |
GSWC | |||
Additional disclosure | |||
Tax benefit for the tax deduction from awards exercised | $ (501,000) | $ (872,000) | (514,000) |
GSWC | Stock options | |||
Additional disclosure | |||
Tax benefit for the tax deduction from awards exercised | $ (501,000) | $ (872,000) | $ (514,000) |
Commitments 2 (Details)
Commitments 2 (Details) - GSWC - Water Supply $ in Thousands | Dec. 31, 2016USD ($) |
Estimated future minimum payments | |
2,017 | $ 409 |
2,018 | 409 |
2,019 | 409 |
2,020 | 409 |
2,021 | 409 |
Thereafter | 3,225 |
Total | 5,270 |
City of Claremont | |
Purchase commitments | |
Remaining amount of commitment | 2,700 |
Various third parties | |
Estimated future minimum payments | |
Total | $ 2,600 |
Commitments 3 (Details)
Commitments 3 (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Water Purchase Commitments [Member] | GSWC | |
Purchase commitments | |
Total commitment under agreement | $ 5,270 |
Bear Valley Electric | Electric Service Utility Operations [Member] | |
Purchase commitments | |
Total commitment under agreement | $ 18,100 |
Commitments 4 (Details)
Commitments 4 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leases: | |||
Consolidated rent expense | $ 2,298 | $ 2,740 | $ 2,982 |
Future minimum payments under long-term non-cancelable operating leases | |||
2,014 | 2,451 | ||
2,015 | 2,106 | ||
2,016 | 1,680 | ||
2,017 | 1,347 | ||
2,018 | 341 | ||
Thereafter | 720 | ||
Total | $ 8,645 |
Commitments Commitments 5 (Deta
Commitments Commitments 5 (Details) $ in Millions | Dec. 31, 2016USD ($) |
Capital Addition Purchase Commitments [Member] | GSWC | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Unrecorded Unconditional Purchase Obligation | $ 41.3 |
Contingencies (Details)
Contingencies (Details) - GSWC $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)customer | |
Environmental Clean-Up and Remediation | |
Contingencies | |
Amount spent in clean-up and remediation activities | $ 5.2 |
Amount paid by the State of California Underground Storage Tank Fund for clean-up and remediation of plant facilities | 1.5 |
Accrued liability for the estimated additional cost to complete the clean-up at the site | 1.4 |
Ojai FLOW | Condemnation of Properties | |
Contingencies | |
Net book value, water system | $ 22.5 |
Number of customers served through water systems | customer | 3,000 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Details of reportable segment | ||||
Operating revenues | $ 436,087 | $ 458,641 | $ 465,791 | |
Operating income (loss) | 114,716 | 118,489 | 119,045 | |
Interest expense, net | (21,235) | (20,630) | (20,690) | |
Utility Plant | 1,150,926 | 1,060,794 | 1,003,520 | |
Depreciation and amortization expense | [1] | 38,850 | 42,033 | 41,073 |
Income tax expense/(benefit) | 34,735 | 37,731 | 38,048 | |
Capital additions | $ 129,867 | 87,323 | 72,553 | |
GSWC | ||||
Details of reportable segment | ||||
Number of reportable segments | segment | 2 | |||
Operating revenues | $ 338,702 | 364,550 | 361,059 | |
Operating income (loss) | 95,819 | 100,409 | 99,742 | |
Utility Plant | 1,145,311 | 1,056,116 | ||
Depreciation and amortization expense | 37,804 | 40,893 | 39,854 | |
Income tax expense/(benefit) | 28,609 | 32,472 | 32,006 | |
GSWC | Water | ||||
Details of reportable segment | ||||
Operating revenues | 302,931 | 328,511 | 326,672 | |
Operating income (loss) | 87,911 | 94,213 | 94,014 | |
Interest expense, net | (19,696) | (19,468) | (19,370) | |
Utility Plant | 1,089,031 | 1,005,114 | 953,678 | |
Depreciation and amortization expense | [1] | 35,777 | 39,190 | 38,388 |
Income tax expense/(benefit) | 25,894 | 30,302 | 30,410 | |
Capital additions | 120,850 | 77,440 | 66,304 | |
GSWC | Electric | ||||
Details of reportable segment | ||||
Operating revenues | 35,771 | 36,039 | 34,387 | |
Operating income (loss) | 7,908 | 6,196 | 5,728 | |
Interest expense, net | (1,337) | (1,090) | (1,260) | |
Utility Plant | 56,280 | 51,002 | 45,202 | |
Depreciation and amortization expense | [1] | 2,027 | 1,703 | 1,466 |
Income tax expense/(benefit) | 2,715 | 2,170 | 1,596 | |
Capital additions | 7,063 | 8,704 | 4,584 | |
American States Utility Services [Member] | Military Utility Privatization Subsidiaries | ||||
Details of reportable segment | ||||
Operating revenues | 97,385 | 94,091 | 104,732 | |
Operating income (loss) | 18,916 | 18,091 | 19,351 | |
Interest expense, net | (68) | (26) | (142) | |
Utility Plant | 5,615 | 4,678 | 4,640 | |
Depreciation and amortization expense | [1] | 1,046 | 1,140 | 1,219 |
Income tax expense/(benefit) | 6,672 | 6,069 | 7,038 | |
Capital additions | $ 1,954 | 1,179 | 1,665 | |
AWR Parent | ||||
Details of reportable segment | ||||
Number of reportable segments | segment | 3 | |||
Operating revenues | $ 0 | 0 | 0 | |
Operating income (loss) | (19) | (11) | (48) | |
Interest expense, net | (134) | (46) | 82 | |
Utility Plant | 0 | 0 | 0 | |
Depreciation and amortization expense | [1] | 0 | 0 | 0 |
Income tax expense/(benefit) | (546) | (810) | (996) | |
Capital additions | $ 0 | $ 0 | $ 0 | |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmZlZWRjOTllOTkyOTRhZDJhMDM3ZjhmMzQ0ZWUwZGNhfFRleHRTZWxlY3Rpb246NDZERTVFNkFDQTdBQ0NCREY0MUU2RjJFOEQyMDhGM0UM} |
Business Segments 2 (Details)
Business Segments 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting [Abstract] | |||
Total utility plant | $ 1,150,926 | $ 1,060,794 | $ 1,003,520 |
Other assets | 319,567 | 283,165 | |
Total Assets | 1,470,493 | 1,343,959 | |
GSWC | |||
Segment Reporting [Abstract] | |||
Total utility plant | 1,145,311 | 1,056,116 | |
Total Assets | 1,384,178 | 1,271,879 | |
Segment Reporting Information [Line Items] | |||
Depreciation on transportation equipment | 259 | 641 | 678 |
AWR Parent | |||
Segment Reporting [Abstract] | |||
Total utility plant | 0 | 0 | 0 |
Total Assets | 590,511 | 497,848 | |
American States Utility Services [Member] | American States Utility Services [Member] | |||
Segment Reporting [Abstract] | |||
Total utility plant | $ 5,615 | $ 4,678 | $ 4,640 |
Allowance for Doubtful Accoun91
Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in allowance for doubtful accounts | ||||
Balance at beginning of year | $ 944 | $ 892 | ||
Provision charged to expense | 619 | 870 | ||
Accounts written off, net of recoveries | 799 | 818 | ||
Balance at end of year | 764 | 944 | ||
Components of allowance for doubtful accounts | ||||
Allowance for doubtful accounts related to accounts receivable-customer | $ 702 | $ 790 | ||
Allowance for doubtful accounts related to other accounts receivable | 62 | 154 | ||
Total allowance for doubtful accounts | 944 | 892 | 764 | 944 |
GSWC | ||||
Changes in allowance for doubtful accounts | ||||
Balance at beginning of year | 919 | 892 | ||
Provision charged to expense | 627 | 845 | ||
Accounts written off, net of recoveries | 785 | 818 | ||
Balance at end of year | 761 | 919 | ||
Components of allowance for doubtful accounts | ||||
Allowance for doubtful accounts related to accounts receivable-customer | 702 | 790 | ||
Allowance for doubtful accounts related to other accounts receivable | 59 | 129 | ||
Total allowance for doubtful accounts | $ 919 | $ 892 | $ 761 | $ 919 |
Supplemental Cash Flow Inform92
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Taxes and Interest Paid: | |||
Income taxes paid | $ 10,916 | $ 14,817 | $ 15,984 |
Interest paid | 22,305 | 21,822 | 22,236 |
Non-Cash Transactions: | |||
Accrued payables for investment in utility plant | 17,236 | 20,655 | 13,147 |
Property installed by developers and conveyed | 5,395 | 3,284 | 800 |
GSWC | |||
Taxes and Interest Paid: | |||
Income taxes paid | 8,437 | 1,541 | 16,500 |
Interest paid | 22,078 | 21,797 | 22,184 |
Non-Cash Transactions: | |||
Accrued payables for investment in utility plant | 17,207 | 20,655 | 13,141 |
Property installed by developers and conveyed | $ 5,395 | $ 3,284 | $ 800 |
SCHEDULE I - CONDENSED FINANC93
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | |||||
Cash and equivalents | $ 436,000 | $ 4,364,000 | $ 75,988,000 | ||
Income taxes receivable and other receivables | 17,867,000 | 10,793,000 | |||
Total current assets | 166,875,000 | 132,697,000 | |||
Other assets | 5,068,000 | 6,750,000 | |||
Total Assets | 1,470,493,000 | 1,343,959,000 | |||
Liabilities and Capitalization | |||||
Notes payable to bank | 90,000,000 | 28,000,000 | |||
Income taxes payable | 149,000 | 68,000 | |||
Other | 177,944,000 | 123,507,000 | |||
Deferred taxes | 224,530,000 | 192,852,000 | |||
Other | 477,271,000 | 433,607,000 | |||
Common shareholders' equity | 494,297,000 | 465,945,000 | 506,801,000 | $ 492,404,000 | |
Total Capitalization and Liabilities | 1,470,493,000 | 1,343,959,000 | |||
Total capitalization | 815,278,000 | 786,845,000 | |||
Golden State Water Company [Member] | |||||
Assets | |||||
Cash and equivalents | 209,000 | 2,501,000 | |||
Income taxes receivable and other receivables | 21,856,000 | 11,000,000 | |||
Total current assets | 112,257,000 | 89,918,000 | |||
Other assets | 4,906,000 | 6,702,000 | |||
Total Assets | 1,384,178,000 | 1,271,879,000 | |||
Liabilities and Capitalization | |||||
Inter-company payable | 61,726,000 | 12,000,000 | |||
Other | 135,971,000 | 90,955,000 | |||
Deferred taxes | 227,798,000 | 195,658,000 | |||
Other | 480,456,000 | 436,294,000 | |||
Common shareholders' equity | 446,770,000 | 423,730,000 | $ 435,190,000 | $ 437,613,000 | |
Total Capitalization and Liabilities | 1,384,178,000 | 1,271,879,000 | |||
Total capitalization | 767,751,000 | 744,630,000 | |||
AWR | |||||
Assets | |||||
Cash and equivalents | 32,000 | 836,000 | |||
Inter-company loan receivables | 76,931,000 | 12,000,000 | |||
Income taxes receivable and other receivables | 0 | 11,000 | |||
Total current assets | 76,963,000 | 12,847,000 | |||
Investments in subsidiaries | 506,584,000 | 479,397,000 | |||
Other assets | 6,964,000 | 5,604,000 | |||
Total Assets | 590,511,000 | 497,848,000 | |||
Liabilities and Capitalization | |||||
Notes payable to bank | 90,000,000 | 28,000,000 | |||
Income taxes payable | 4,043,000 | 2,579,000 | |||
Inter-company payable | 0 | 474,000 | |||
Deferred taxes and other liabilities | 517,000 | 28,000 | |||
Other | 94,560,000 | 31,081,000 | |||
Deferred taxes | 0 | 734,000 | |||
Other | 1,654,000 | 822,000 | |||
Income taxes payable and other liabilities | 1,654,000 | 88,000 | |||
Common shareholders' equity | 494,297,000 | 465,945,000 | |||
Total Capitalization and Liabilities | 590,511,000 | 497,848,000 | |||
Total capitalization | 494,297,000 | 465,945,000 | |||
Notes Payable, Other Payables [Member] | Notes Receivable | Golden State Water Company [Member] | |||||
Assets | |||||
Notes Receivable, Related Parties, Current | $ 0 | ||||
Notes Payable, Other Payables [Member] | Notes Receivable | AWR | |||||
Assets | |||||
Notes Receivable, Related Parties, Current | $ 0 | $ 0 |
SCHEDULE I - CONDENSED FINANC94
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT 2 (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed financial statements | |||
Income from operations before income tax expense | $ 94,478 | $ 98,215 | $ 99,106 |
Net Income | $ 59,743 | $ 60,484 | $ 61,058 |
Weighted Average Number of Shares Outstanding (in shares) | 36,552 | 37,389 | 38,658 |
Basic Earnings Per Common Share (in dollars per share) | $ 1.63 | $ 1.61 | $ 1.57 |
Weighted Average Number of Diluted Common Shares Outstanding | 36,750 | 37,614 | 38,880 |
Fully Diluted Earnings per Common Share (in dollars per share) | $ 1.62 | $ 1.60 | $ 1.57 |
Dividends Declared Per Common Share (in dollars per share) | $ 0.914 | $ 0.874 | $ 0.831 |
AWR | |||
Condensed financial statements | |||
Operating revenues and other income | $ 71 | $ 98 | $ 81 |
Operating Expenses and Other Expenses | 19 | 11 | 48 |
Operating income / (loss) | 52 | 87 | 33 |
Equity in earnings of subsidiaries | 59,145 | 59,587 | 60,029 |
Income from operations before income tax expense | 59,197 | 59,674 | 60,062 |
Income tax expense (benefit) | (546) | (810) | (996) |
Net Income | $ 59,743 | $ 60,484 | $ 61,058 |
SCHEDULE I - CONDENSED FINANC95
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed financial statements | |||
Cash Flows From Operating Activities | $ 96,949 | $ 95,145 | $ 163,270 |
Cash Flows From Investing Activities: | |||
Net cash used | (131,221) | (90,138) | (74,059) |
Cash Flows From Financing Activities: | |||
Payments for Repurchase of Common Stock | 0 | (72,893) | (17,180) |
Proceeds from stock option exercises | 235 | 1,198 | 589 |
Net change in notes payable to banks | 62,000 | 28,000 | 0 |
Dividends paid | (33,408) | (32,690) | (32,111) |
Proceeds from (Payments for) Other Financing Activities | (1,490) | (957) | (968) |
Net cash provided (used) | 30,344 | (76,631) | (51,449) |
Net increase (decrease) in cash and cash equivalents | (3,928) | (71,624) | 37,762 |
Cash and cash equivalents, beginning of year | 4,364 | 75,988 | 38,226 |
Cash and cash equivalents, end of year | 436 | 4,364 | 75,988 |
AWR | |||
Condensed financial statements | |||
Cash Flows From Operating Activities | 34,878 | 57,682 | 61,092 |
Cash Flows From Investing Activities: | |||
Loans (made to)/repaid from, wholly-owned subsidiaries | (64,500) | (12,000) | 19,668 |
Net cash used | (64,500) | (12,000) | 19,668 |
Cash Flows From Financing Activities: | |||
Payments for Repurchase of Common Stock | 0 | (72,893) | (17,180) |
Proceeds from note payable to GSWC | 0 | 20,700 | 8,300 |
Repayment of note payable to GSWC | 0 | (20,700) | (8,800) |
Proceeds from stock option exercises | 235 | 1,198 | 589 |
Net change in notes payable to banks | 62,000 | 28,000 | 0 |
Dividends paid | (33,408) | (32,690) | (32,111) |
Proceeds from (Payments for) Other Financing Activities | (9) | (90) | (36) |
Net cash provided (used) | 28,818 | (76,475) | (49,238) |
Net increase (decrease) in cash and cash equivalents | (804) | (30,793) | 31,522 |
Cash and cash equivalents, beginning of year | 836 | 31,629 | 107 |
Cash and cash equivalents, end of year | $ 32 | $ 836 | $ 31,629 |
SCHEDULE I - CONDENSED FINANC96
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT 4 (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 31, 2016 | Sep. 30, 2016 | Oct. 27, 2015 | |
Short-term borrowing activities (excluding letters of credit) | ||||||
Balance outstanding at the end of the period | $ 90,000,000 | $ 28,000,000 | ||||
Short-term borrowing (excluding letters of credit) | ||||||
Short-term borrowing activities (excluding letters of credit) | ||||||
Balance outstanding at the end of the period | $ 90,000,000 | $ 28,000,000 | ||||
Interest Rate at the end of the period (as a percent) | 1.46% | 1.09% | ||||
Average Amount Outstanding | $ 59,261,000 | $ 4,112,000 | ||||
Weighted Average Annual Interest Rate (as a percent) | 1.20% | 0.92% | ||||
Maximum Amount Outstanding | $ 96,000,000 | $ 37,000,000 | ||||
Syndicated revolving credit facility | ||||||
Note payable to banks | ||||||
Variable rate basis | Euro rate | |||||
Syndicated revolving credit facility | Minimum | ||||||
Short-term borrowing activities (excluding letters of credit) | ||||||
Interest coverage ratio | 325.00% | |||||
Syndicated revolving credit facility | Maximum [Member] | ||||||
Short-term borrowing activities (excluding letters of credit) | ||||||
Total funded debt ratio | 65.00% | |||||
Syndicated revolving credit facility | Letter of Credit Irrevocable Franchise Agreement with City of Rancho Cordova [Member] | ||||||
Note payable to banks | ||||||
Letter of credit, amount | $ 15,000,000 | |||||
AWR | ||||||
Note payable to banks | ||||||
Maximum borrowing capacity | $ 150,000,000 | $ 100,000,000 | ||||
Short-term borrowing activities (excluding letters of credit) | ||||||
Balance outstanding at the end of the period | $ 90,000,000 | 28,000,000 | ||||
AWR | Syndicated revolving credit facility | ||||||
Short-term borrowing activities (excluding letters of credit) | ||||||
Interest coverage ratio | 707.00% | |||||
Total funded debt ratio | 46.00% | |||||
AWR | Syndicated revolving credit facility | Minimum | ||||||
Short-term borrowing activities (excluding letters of credit) | ||||||
Interest coverage ratio | 325.00% | |||||
AWR | Syndicated revolving credit facility | Maximum [Member] | ||||||
Short-term borrowing activities (excluding letters of credit) | ||||||
Total funded debt ratio | 65.00% | |||||
AWR | Syndicated revolving credit facility | Letters of credit | ||||||
Note payable to banks | ||||||
Maximum borrowing capacity | $ 25,000,000 | |||||
Letter of credit, amount | $ 9,900,000 | |||||
Letter of credit fee (as a percent) | 0.65% | |||||
AWR | Syndicated revolving credit facility | Letter of Credit - GSWC business automobile insurance policy | ||||||
Note payable to banks | ||||||
Letter of credit, amount | $ 340,000 | |||||
AWR | Syndicated revolving credit facility | Letter of Credit - American Recovery and Reinvestment Act | ||||||
Note payable to banks | ||||||
Letter of credit, amount | 5,400,000 | |||||
AWR | Syndicated revolving credit facility | Letter of Credit - Purchase of power | ||||||
Note payable to banks | ||||||
Letter of credit, amount | 585,000,000 | |||||
AWR | Syndicated revolving credit facility | Irrevocable Letter of Credit - Edison Settlement agreement | ||||||
Note payable to banks | ||||||
Letter of credit, amount | 3,600,000 | |||||
Subsidiaries [Member] | ||||||
Short-term borrowing activities (excluding letters of credit) | ||||||
Dividends paid | (33,800,000) | $ (52,000,000) | ||||
GSWC | ||||||
Short-term borrowing activities (excluding letters of credit) | ||||||
Dividends paid | (25,450,000) | (62,000,000) | $ (52,000,000) | |||
Syndicated revolving credit facility | AWR | Syndicated revolving credit facility | ||||||
Note payable to banks | ||||||
Maximum borrowing capacity | 150,000,000 | |||||
Notes Payable, Other Payables [Member] | GSWC | ||||||
Short-term borrowing activities (excluding letters of credit) | ||||||
Debt Instrument, Face Amount | $ 40,000,000 | |||||
Debt Instrument, Maximum Borrowing Capacity | 40,000,000 | |||||
Notes Payable, Other Payables [Member] | American States Utility Services [Member] | ||||||
Short-term borrowing activities (excluding letters of credit) | ||||||
Debt Instrument, Face Amount | 10,000,000 | |||||
Debt Instrument, Maximum Borrowing Capacity | $ 10,000,000 | |||||
Notes Receivable | Notes Payable, Other Payables [Member] | AWR | ||||||
Short-term borrowing activities (excluding letters of credit) | ||||||
Notes Receivable, Related Parties, Current | $ 0 | $ 0 | ||||
Notes Receivable | Notes Payable, Other Payables [Member] | GSWC | ||||||
Short-term borrowing activities (excluding letters of credit) | ||||||
Notes Receivable, Related Parties, Current | $ 0 |