Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2018

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Consolidating Balance Sheet

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING BALANCE SHEET

As of June 30, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Utility plant:
Utility plant	$	1,321		$	2,890,709		$	209,783		$	(7,197	)	$	3,094,616
Less accumulated depreciation and amortization	(966		)	(908,107		)	(57,333		)	2,054			(964,352		)
Net utility plant	355			1,982,602			152,450			(5,143		)	2,130,264
Current assets:
Cash and cash equivalents	2,048			24,494			7,126			—			33,668
Receivables and unbilled revenue	1			129,007			5,000			—			134,008
Receivables from affiliates	23,616			771			207			(24,594		)	—
Other current assets	293			19,812			1,789			—			21,894
Total current assets	25,958			174,084			14,122			(24,594		)	189,570
Other assets:
Regulatory assets	—			401,325			3,972			—			405,297
Investments in affiliates	690,883			—			—			(690,883		)	—
Long-term affiliate notes receivable	25,601			—			—			(25,601		)	—
Other assets	59			60,707			3,821			(204		)	64,383
Total other assets	716,543			462,032			7,793			(716,688		)	469,680
TOTAL ASSETS	$	742,856		$	2,618,718		$	174,365		$	(746,425	)	$	2,789,514
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	685,932		$	618,145		$	77,963		$	(696,108	)	$	685,932
Affiliate long-term debt	—			—			25,601			(25,601		)	—
Long-term debt, less current maturities	—			413,800			730			—			414,530
Total capitalization	685,932			1,031,945			104,294			(721,709		)	1,100,462
Current liabilities:
Current maturities of long-term debt	—			104,720			304			—			105,024
Short-term borrowings	55,100			270,000			—			—			325,100
Payables to affiliates	—			709			23,885			(24,594		)	—
Accounts payable	—			89,872			3,160			—			93,032
Accrued expenses and other liabilities	69			95,475			3,600			—			99,144
Total current liabilities	55,169			560,776			30,949			(24,594		)	622,300
Unamortized investment tax credits	—			1,724			—			—			1,724
Deferred income taxes	1,755			191,704			2,772			(122		)	196,109
Pension and postretirement benefits other than pensions	—			256,431			—			—			256,431
Regulatory liabilities and other	—			235,289			3,623			—			238,912
Advances for construction	—			184,787			499			—			185,286
Contributions in aid of construction	—			156,062			32,228			—			188,290
TOTAL CAPITALIZATION AND LIABILITIES	$	742,856		$	2,618,718		$	174,365		$	(746,425	)	$	2,789,514

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2017

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Utility plant:
Utility plant	$	1,321		$	2,771,259		$	204,795		$	(7,196	)	$	2,970,179
Less accumulated depreciation and amortization	(919		)	(868,762		)	(54,543		)	2,010			(922,214		)
Net utility plant	402			1,902,497			150,252			(5,186		)	2,047,965
Current assets:
Cash and cash equivalents	4,728			80,940			9,108			—			94,776
Receivables and unbilled revenue	—			110,928			4,526			—			115,454
Receivables from affiliates	19,952			4,093			43			(24,088		)	—
Other current assets	80			16,569			994			—			17,643
Total current assets	24,760			212,530			14,671			(24,088		)	227,873
Other assets:
Regulatory assets	—			397,333			3,814			—			401,147
Investments in affiliates	698,690			—			—			(698,690		)	—
Long-term affiliate notes receivable	26,441			—			—			(26,441		)	—
Other assets	192			59,581			3,822			(205		)	63,390
Total other assets	725,323			456,914			7,636			(725,336		)	464,537
TOTAL ASSETS	$	750,485		$	2,571,941		$	172,559		$	(754,610	)	$	2,740,375
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	693,462		$	626,300		77,647			$	(703,947	)	$	693,462
Affiliate long-term debt	—			—			26,441			(26,441		)	—
Long-term debt, less current maturities	—			514,952			841			—			515,793
Total capitalization	693,462			1,141,252			104,929			(730,388		)	1,209,255
Current liabilities:
Current maturities of long-term debt	—			15,598			322			—			15,920
Short-term borrowings	55,100			220,000			—			—			275,100
Payables to affiliates	—			580			23,508			(24,088		)	—
Accounts payable	—			90,561			3,394			—			93,955
Accrued expenses and other liabilities	271			104,002			1,711			—			105,984
Total current liabilities	55,371			430,741			28,935			(24,088		)	490,959
Unamortized investment tax credits	—			1,724			—			—			1,724
Deferred income taxes	1,652			189,004			2,424			(134		)	192,946
Pension and postretirement benefits other than pensions	—			252,141			—			—			252,141
Regulatory and other liabilities	—			220,779			3,348			—			224,127
Advances for construction	—			181,979			523			—			182,502
Contributions in aid of construction	—			154,321			32,400			—			186,721
TOTAL CAPITALIZATION AND LIABILITIES	$	750,485		$	2,571,941		$	172,559		$	(754,610	)	$	2,740,375

Schedule of Condensed Consolidating Statement of Income

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the three months ended June 30, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	162,296		$	10,336		$	—		$	172,632
Operating expenses:
Operations:
Water production costs	—			63,209			2,164			—			65,373
Administrative and general	—			22,047			2,336			—			24,383
Other operations	—			19,138			1,732			(146		)	20,724
Maintenance	—			5,192			197			—			5,389
Depreciation and amortization	24			19,664			1,286			(21		)	20,953
Income tax (benefit) expense	(122		)	3,940			328			201			4,347
Property and other taxes	—			5,682			725			—			6,407
Total operating (income) expenses	(98		)	138,872			8,768			34			147,576
Net operating income	98			23,424			1,568			(34		)	25,056
Other income and expenses:
Non-regulated revenue	557			4,739			252			(703		)	4,845
Non-regulated expenses	—			(5,975		)	(140		)	—			(6,115		)
Other components of net periodic benefit cost	—			(2,337		)	(126		)	—			(2,463		)
Allowance for equity funds used during construction	—			710			—			—			710
Income tax (expense) benefit on other income and expenses	(156		)	783			(5		)	197			819
Net other income (loss)	401			(2,080		)	(19		)	(506		)	(2,204		)
Interest:
Interest expense	411			9,718			562			(557		)	10,134
Allowance for borrowed funds used during construction	—			(270		)	(34		)	—			(304		)
Net interest expense	411			9,448			528			(557		)	9,830
Equity earnings of subsidiaries	12,934			—			—			(12,934		)	—
Net income	$	13,022		$	11,896		$	1,021		$	(12,917	)	$	13,022

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the three months ended June 30, 2017

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	161,174		$	9,958		$	—		$	171,132
Operating expenses:
Operations:
Water production costs	—			62,089			2,042			—			64,131
Administrative and general	—			18,907			2,506			—			21,413
Other operations	—			16,729			1,725			(126		)	18,328
Maintenance	—			4,509			199			—			4,708
Depreciation and amortization	26			18,102			1,113			(23		)	19,218
Income tax (benefit) expense	(123		)	10,012			454			263			10,606
Property and other taxes	—			5,315			742			—			6,057
Total operating (income) expenses	(97		)	135,663			8,781			114			144,461
Net operating income	97			25,511			1,177			(114		)	26,671
Other income and expenses:
Non-regulated revenue	496			3,469			396			(622		)	3,739
Non-regulated expenses	—			(1,428		)	(186		)	—			(1,614		)
Other components of net periodic benefit cost	—			(2,240		)	(143		)	—			(2,383		)
Allowance for equity funds used during construction	—			879			—			—			879
Income tax expense on other income and expenses	(202		)	(278		)	(19		)	253			(246		)
Net other income	294			402			48			(369		)	375
Interest:
Interest expense	275			8,795			505			(496		)	9,079
Allowance for borrowed funds used during construction	—			(542		)	(22		)	—			(564		)
Net interest expense	275			8,253			483			(496		)	8,515
Equity earnings of subsidiaries	18,415			—			—			(18,415		)	—
Net income	$	18,531		$	17,660		$	742		$	(18,402	)	$	18,531

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the six months endedJune 30, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	285,866		$	19,013		$	—		$	304,879
Operating expenses:
Operations:
Water production costs	—			108,832			4,147			—			112,979
Administrative and general	—			45,653			5,049			—			50,702
Other operations	—			35,355			3,301			(292		)	38,364
Maintenance	—			10,436			392			—			10,828
Depreciation and amortization	47			39,277			2,387			(43		)	41,668
Income tax (benefit) expense	(200		)	3,600			320			398			4,118
Property and other taxes	—			11,689			1,422			—			13,111
Total operating (income) expenses	(153		)	254,842			17,018			63			271,770
Net operating income	153			31,024			1,995			(63		)	33,109
Other income and expenses:
Non-regulated revenue	1,088			8,983			572			(1,379		)	9,264
Non-regulated expenses	—			(11,268		)	(284		)	—			(11,552		)
Other components of net periodic benefit cost	—			(4,784		)	(225		)	—			(5,009		)
Allowance for equity funds used during construction	—			1,621			—			—			1,621
Income tax (expense) benefit on other income and expenses	(304		)	1,524			(29		)	386			1,577
Net other income (loss)	784			(3,924		)	34			(993		)	(4,099		)
Interest:
Interest expense	669			18,652			1,099			(1,088		)	19,332
Allowance for borrowed funds used during construction	—			(728		)	(71		)	—			(799		)
Net interest expense	669			17,924			1,028			(1,088		)	18,533
Equity earnings of subsidiaries	10,209			—			—			(10,209		)	—
Net income	$	10,477		$	9,176		$	1,001		$	(10,177	)	$	10,477

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the six months ended June 30, 2017

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	274,516		$	18,652		$	—		$	293,168
Operating expenses:
Operations:
Water production costs	—			102,278			3,921			—			106,199
Administrative and general	—			39,028			5,131			—			44,159
Other operations	—			31,129			3,575			(252		)	34,452
Maintenance	—			10,415			405			—			10,820
Depreciation and amortization	49			36,213			2,203			(46		)	38,419
Income tax (benefit) expense	(226		)	9,066			362			520			9,722
Property and other taxes	(4		)	10,727			1,450			—			12,173
Total operating (income) expenses	(181		)	238,856			17,047			222			255,944
Net operating income	181			35,660			1,605			(222		)	37,224
Other income and expenses:
Non-regulated revenue	977			6,604			850			(1,230		)	7,201
Non-regulated expenses	—			(3,175		)	(493		)	—			(3,668		)
Other components of net periodic benefit cost	—			(4,595		)	(291		)	—			(4,886		)
Allowance for equity funds used during construction	—			1,658			—			—			1,658
Income tax expense on other income and expenses	(398		)	(1,161		)	(77		)	501			(1,135		)
Net other income (loss)	579			(669		)	(11		)	(729		)	(830		)
Interest:
Interest expense	510			17,265			991			(977		)	17,789
Allowance for borrowed funds used during construction	—			(1,018		)	(40		)	—			(1,058		)
Net interest expense	510			16,247			951			(977		)	16,731
Equity earnings of subsidiaries	19,413			—			—			(19,413		)	—
Net income	$	19,663		$	18,744		$	643		$	(19,387	)	$	19,663

Schedule of Condensed Consolidating Statement of Cash Flows

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months endedJune 30, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating activities:
Net income	$	10,477		$	9,176		$	1,001		$	(10,177	)	$	10,477
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	(10,209		)	—			—			10,209			—
Dividends received from affiliates	18,017			—			—			(18,017		)	—
Depreciation and amortization	47			40,146			2,432			(43		)	42,582
Changes in value of life insurance contracts	—			817			—			—			817
Allowance for equity funds used during construction	—			(1,621		)	—			—			(1,621		)
Changes in operating assets and liabilities	(417		)	(16,439		)	467			—			(16,389		)
Other changes in noncurrent assets and liabilities	1,610			11,653			431			11			13,705
Net cash provided by operating activities	19,525			43,732			4,331			(18,017		)	49,571
Investing activities:
Utility plant expenditures	—			(128,683		)	(5,217		)	—			(133,900		)
Changes in affiliate advances	58			3,323			(194		)	(3,187		)	—
Issuance of affiliate short-term borrowings	(3,700		)	—			—			3,700			—
Reduction of affiliates long-term debt	818			—			—			(818		)	—
Life insurance proceeds	—			2,054			—			—			2,054
Purchase of life insurance contracts	—			(2,054		)	—			—			(2,054		)
Net cash used in investing activities	(2,824		)	(125,360		)	(5,411		)	(305		)	(133,900		)
Financing Activities:
Short-term borrowings	—			111,000			—			—			111,000
Repayment of short-term borrowings	—			(61,000		)	—			—			(61,000		)
Changes in affiliate advances	—			129			(3,316		)	3,187			—
Proceeds from affiliate short-term borrowings	—			—			3,700			(3,700		)	—
Repayment of affiliates long-term borrowings	—			—			(818		)	818			—
Repayment of long-term debt	—			(12,136		)	(128		)	—			(12,264		)
Advances and contributions in aid of construction	—			8,029			356			—			8,385
Refunds of advances for construction	—			(3,489		)	(9		)	—			(3,498		)
Repurchase of common stock	(1,364		)	—			—			—			(1,364		)
Dividends paid to non-affiliates	(18,017		)	—			—			—			(18,017		)
Dividends paid to affiliates	—			(17,330		)	(687		)	18,017			—
Net cash (used in) provided by financing activities	(19,381		)	25,203			(902		)	18,322			23,242
Change in cash, cash equivalents, and restricted cash	(2,680		)	(56,425		)	(1,982		)	—			(61,087		)
Cash, cash equivalents, and restricted cash at beginning of period	4,728			81,453			9,171			—			95,352
Cash, cash equivalents, and restricted cash at end of period	$	2,048		$	25,028		$	7,189		—			$	34,265

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended June 30, 2017

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating activities:
Net income	$	19,663		$	18,744		$	643		$	(19,387	)	$	19,663
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	(19,413		)	—			—			19,413			—
Dividends received from affiliates	17,278			—			—			(17,278		)	—
Depreciation and amortization	47			37,074			2,253			(46		)	39,328
Changes in value of life insurance contracts	—			(1,208		)	—			—			(1,208		)
Allowance for equity funds used during construction	—			(1,658		)	—			—			(1,658		)
Changes in operating assets and liabilities	(172		)	(40,755		)	841			—			(40,086		)
Other changes in noncurrent assets and liabilities	1,520			17,650			497			20			19,687
Net cash provided by operating activities	18,923			29,847			4,234			(17,278		)	35,726
Investing activities:
Utility plant expenditures	—			(105,684		)	(3,028		)	—			(108,712		)
Changes in affiliate advances	429			2,491			(138		)	(2,782		)	—
Issuance of affiliate short-term borrowings	(2,610		)	—			—			2,610			—
Reduction of affiliates long-term debt	668			—			—			(668		)	—
Life insurance proceeds	—			450			—			—			450
Purchase of life insurance contracts	—			(1,216		)	—			—			(1,216		)
Net cash used in investing activities	(1,513		)	(103,959		)	(3,166		)	(840		)	(109,478		)
Financing Activities:
Short-term borrowings	—			140,000			—			—			140,000
Repayment of short-term borrowings	(2,000		)	(45,000		)	—			—			(47,000		)
Changes in affiliate advances	—			(238		)	(2,544		)	2,782			—
Proceeds from affiliate short-term borrowings	—			—			2,610			(2,610		)	—
Repayment of affiliates long-term borrowings	—			—			(668		)	668			—
Repayment of long-term debt	—			(2,161		)	(246		)	—			(2,407		)
Advances and contributions in aid for construction	—			10,225			87			—			10,312
Refunds of advances for construction	—			(4,430		)	—			—			(4,430		)
Repurchase of common stock	(1,236		)	—			—			—			(1,236		)
Dividends paid to non-affiliates	(17,278		)	—			—			—			(17,278		)
Dividends paid to affiliates	—			(16,484		)	(794		)	17,278			—
Net cash (used in) provided by financing activities	(20,514		)	81,912			(1,555		)	18,118			77,961
Change in cash, cash equivalents, and restricted cash	(3,104		)	7,800			(487		)	—			4,209
Cash, cash equivalents, and restricted cash at beginning of period	5,216			13,595			7,124			—			25,935
Cash, cash equivalents, and restricted cash at end of period	$	2,112		$	21,395		$	6,637		—			$	30,144