Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2018

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Consolidating Balance Sheet

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING BALANCE SHEET

As of September 30, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Utility plant:
Utility plant	$	1,317		$	2,963,674		$	211,931		$	(7,196	)	$	3,169,726
Less accumulated depreciation and amortization	(989		)	(926,291		)	(58,780		)	2,076			(983,984		)
Net utility plant	328			2,037,383			153,151			(5,120		)	2,185,742
Current assets:
Cash and cash equivalents	2,445			55,108			8,868			—			66,421
Receivables and unbilled revenue	—			144,340			5,639			—			149,979
Receivables from affiliates	44,671			895			286			(45,852		)	—
Other current assets	203			17,360			1,576			—			19,139
Total current assets	47,319			217,703			16,369			(45,852		)	235,539
Other assets:
Regulatory assets	—			384,249			4,051			—			388,300
Investments in affiliates	716,177			—			—			(716,177		)	—
Long-term affiliate notes receivable	25,172			—			—			(25,172		)	—
Other assets	70			63,624			3,660			(73		)	67,281
Total other assets	741,419			447,873			7,711			(741,422		)	455,581
TOTAL ASSETS	$	789,066		$	2,702,959		$	177,231		$	(792,394	)	$	2,876,862
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	712,034		$	642,588		$	78,798		$	(721,386	)	$	712,034
Affiliate long-term debt	—			—			—			—			—
Long-term debt, less current maturities	—			713,622			25,860			(25,172		)	714,310
Total capitalization	712,034			1,356,210			104,658			(746,558		)	1,426,344
Current liabilities:
Current maturities of long-term debt	—			104,538			274			—			104,812
Short-term borrowings	75,100			—			—			—			75,100
Payables to affiliates	—			21,710			24,142			(45,852		)	—
Accounts payable	—			99,315			3,623			—			102,938
Accrued expenses and other liabilities	112			94,675			4,253			—			99,040
Total current liabilities	75,212			320,238			32,292			(45,852		)	381,890
Unamortized investment tax credits	—			1,724			—			—			1,724
Deferred income taxes	1,820			193,864			3,459			—			199,143
Pension and postretirement benefits other than pensions	—			235,501			—			—			235,501
Regulatory liabilities and other	—			251,235			4,318			16			255,569
Advances for construction	—			186,389			508			—			186,897
Contributions in aid of construction	—			157,798			31,996			—			189,794
TOTAL CAPITALIZATION AND LIABILITIES	$	789,066		$	2,702,959		$	177,231		$	(792,394	)	$	2,876,862

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 September 30, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	206,390		$	12,593		$	—		$	218,983
Operating expenses:
Operations:
Water production costs	—			76,317			2,501			—			78,818
Administrative and general	—			23,878			2,615			—			26,493
Other operations	—			20,271			1,816			(144		)	21,943
Maintenance	—			6,538			230			—			6,768
Depreciation and amortization	23			19,632			1,376			(22		)	21,009
Income tax (benefit) expense	(142		)	9,911			1,271			222			11,262
Property and other taxes	—			6,205			937			—			7,142
Total operating (income) expenses	(119		)	162,752			10,746			56			173,435
Net operating income	119			43,638			1,847			(56		)	45,548
Other income and expenses:
Non-regulated revenue	628			4,589			259			(773		)	4,703
Non-regulated expenses	—			(4,675		)	(222		)	—			(4,897		)
Other components of net periodic benefit cost	—			(1,834		)	(141		)	—			(1,975		)
Allowance for equity funds used during construction	—			1,023			—			—			1,023
Income tax (expense) benefit on other income and expenses	(176		)	252			13			216			305
Net other income (loss)	452			(645		)	(91		)	(557		)	(841		)
Interest:
Interest expense	486			10,443			574			(628		)	10,875
Allowance for borrowed funds used during construction	—			(522		)	(38		)	—			(560		)
Net interest expense	486			9,921			536			(628		)	10,315
Equity earnings of subsidiaries	34,307			—			—			(34,307		)	—
Net income	$	34,392		$	33,072		$	1,220		$	(34,292	)	$	34,392

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the three months ended September 30, 2017

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	199,002		$	12,729		$	—		$	211,731
Operating expenses:
Operations:
Water production costs	—			73,061			2,200			—			75,261
Administrative and general	—			20,352			2,397			—			22,749
Other operations	—			18,979			2,356			(127		)	21,208
Maintenance	—			5,729			328			—			6,057
Depreciation and amortization	21			18,115			1,117			(22		)	19,231
Income tax (benefit) expense	(136		)	17,009			1,080			266			18,219
Property and other taxes	—			5,680			864			—			6,544
Total operating (income) expenses	(115		)	158,925			10,342			117			169,269
Net operating income	115			40,077			2,387			(117		)	42,462
Other income and expenses:
Non-regulated revenue	505			3,218			450			(631		)	3,542
Non-regulated expenses	—			(2,151		)	(425		)	—			(2,576		)
Other components of net periodic benefit cost	—			(2,010		)	(127		)	—			(2,137		)
Allowance for equity funds used during construction	—			1,105			—			—			1,105
Income tax (expense) benefit on other income and expenses	(206		)	(66		)	45			257			30
Net other income (loss)	299			96			(57		)	(374		)	(36		)
Interest:
Interest expense	313			8,951			525			(505		)	9,284
Allowance for borrowed funds used during construction	—			(684		)	(23		)	—			(707		)
Net interest expense	313			8,267			502			(505		)	8,577
Equity earnings of subsidiaries	33,748			—			—			(33,748		)	—
Net income	$	33,849		$	31,906		$	1,828		$	(33,734	)	$	33,849

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the nine months endedSeptember 30, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	492,256		$	31,606		$	—		$	523,862
Operating expenses:
Operations:
Water production costs	—			185,149			6,648			—			191,797
Administrative and general	—			69,531			7,664			—			77,195
Other operations	—			55,626			5,117			(436		)	60,307
Maintenance	—			16,974			622			—			17,596
Depreciation and amortization	70			58,909			3,763			(65		)	62,677
Income tax (benefit) expense	(342		)	13,511			1,591			620			15,380
Property and other taxes	—			17,894			2,359			—			20,253
Total operating (income) expenses	(272		)	417,594			27,764			119			445,205
Net operating income	272			74,662			3,842			(119		)	78,657
Other income and expenses:
Non-regulated revenue	1,716			13,572			831			(2,152		)	13,967
Non-regulated expenses	—			(15,943		)	(506		)	—			(16,449		)
Other components of net periodic benefit cost	—			(6,618		)	(366		)	—			(6,984		)
Allowance for equity funds used during construction	—			2,644			—			—			2,644
Income tax (expense) benefit on other income and expenses	(480		)	1,776			(16		)	602			1,882
Net other income (loss)	1,236			(4,569		)	(57		)	(1,550		)	(4,940		)
Interest:
Interest expense	1,155			29,095			1,673			(1,716		)	30,207
Allowance for borrowed funds used during construction	—			(1,250		)	(109		)	—			(1,359		)
Net interest expense	1,155			27,845			1,564			(1,716		)	28,848
Equity earnings of subsidiaries	44,516			—			—			(44,516		)	—
Net income	$	44,869		$	42,248		$	2,221		$	(44,469	)	$	44,869

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the nine months ended September 30, 2017

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	473,518		$	31,381		$	—		$	504,899
Operating expenses:
Operations:
Water production costs	—			175,339			6,121			—			181,460
Administrative and general	—			59,380			7,528			—			66,908
Other operations	—			50,108			5,931			(379		)	55,660
Maintenance	—			16,144			733			—			16,877
Depreciation and amortization	70			54,328			3,320			(68		)	57,650
Income tax (benefit) expense	(362		)	26,075			1,442			786			27,941
Property and other taxes	(4		)	16,407			2,314			—			18,717
Total operating (income) expenses	(296		)	397,781			27,389			339			425,213
Net operating income	296			75,737			3,992			(339		)	79,686
Other income and expenses:
Non-regulated revenue	1,482			9,822			1,300			(1,861		)	10,743
Non-regulated expenses	—			(5,326		)	(918		)	—			(6,244		)
Other components of net periodic benefit cost	—			(6,605		)	(418		)	—			(7,023		)
Allowance for equity funds used during construction	—			2,763			—			—			2,763
Income tax expense on other income and expenses	(604		)	(1,227		)	(32		)	758			(1,105		)
Net other income (loss)	878			(573		)	(68		)	(1,103		)	(866		)
Interest:
Interest expense	823			26,216			1,516			(1,482		)	27,073
Allowance for borrowed funds used during construction	—			(1,702		)	(63		)	—			(1,765		)
Net interest expense	823			24,514			1,453			(1,482		)	25,308
Equity earnings of subsidiaries	53,161			—			—			(53,161		)	—
Net income	$	53,512		$	50,650		$	2,471		$	(53,121	)	$	53,512

Schedule of Condensed Consolidating Statement of Cash Flows

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the nine months endedSeptember 30, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating activities:
Net income	$	44,869		$	42,248		$	2,221		$	(44,469	)	$	44,869
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	(44,516		)	—			—			44,516			—
Dividends received from affiliates	27,029			—			—			(27,029		)	—
Depreciation and amortization	70			60,298			3,828			(65		)	64,131
Changes in value of life insurance contracts	—			124			—			—			124
Allowance for equity funds used during construction	—			(2,644		)	—			—			(2,644		)
Changes in operating assets and liabilities	(281		)	6,135			1,178			—			7,032
Other changes in noncurrent assets and liabilities	2,518			1,466			1,989			18			5,991
Net cash provided by operating activities	29,689			107,627			9,216			(27,029		)	119,503
Investing activities:
Utility plant expenditures	4			(205,218		)	(7,642		)	—			(212,856		)
Changes in affiliate advances	(975		)	3,198			(269		)	(1,954		)	—
Issuance of affiliate short-term borrowings	(23,700		)	—			—			23,700			—
Reduction of affiliates long-term debt	1,224			—			—			(1,224		)	—
Life insurance proceeds	—			3,491			—			—			3,491
Purchase of life insurance contracts	—			(4,925		)	—			—			(4,925		)
Net cash used in investing activities	(23,447		)	(203,454		)	(7,911		)	20,522			(214,290		)
Financing Activities:
Short-term borrowings	20,000			121,000			—			—			141,000
Repayment of short-term borrowings	—			(341,000		)	—			—			(341,000		)
Changes in affiliate advances	—			1,129			(3,083		)	1,954			—
Proceeds from affiliate short-term borrowings	—			20,000			3,700			(23,700		)	—
Repayment of affiliates long-term borrowings	—			—			(1,224		)	1,224			—
Issuance of long-term debt, net of expenses	—			299,383			—			—			299,383
Repayment of long-term debt	—			(12,299		)	(200		)	—			(12,499		)
Advances and contributions in aid of construction	—			13,288			342			—			13,630
Refunds of advances for construction	—			(5,452		)	(10		)	—			(5,462		)
Repurchase of common stock	(1,496		)	—			—			—			(1,496		)
Dividends paid to non-affiliates	(27,029		)	—			—			—			(27,029		)
Dividends paid to affiliates	—			(25,959		)	(1,070		)	27,029			—
Net cash (used in) provided by financing activities	(8,525		)	70,090			(1,545		)	6,507			66,527
Change in cash, cash equivalents, and restricted cash	(2,283		)	(25,737		)	(240		)	—			(28,260		)
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	$	2,445		$	55,716		$	8,931		—			$	67,092

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2017

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating activities:
Net income	$	53,512		$	50,650		$	2,471		$	(53,121	)	$	53,512
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	(53,161		)	—			—			53,161			—
Dividends received from affiliates	25,920			—			—			(25,920		)	—
Depreciation and amortization	70			55,623			3,392			(69		)	59,016
Changes in value of life insurance contracts	—			(1,871		)	—			—			(1,871		)
Allowance for equity funds used during construction	—			(2,763		)	—			—			(2,763		)
Changes in operating assets and liabilities	(38		)	(40,941		)	1,036			—			(39,943		)
Other changes in noncurrent assets and liabilities	2,420			37,125			2,263			29			41,837
Net cash provided by operating activities	28,723			97,823			9,162			(25,920		)	109,788
Investing activities:
Utility plant expenditures	(4		)	(175,234		)	(5,204		)	—			(180,442		)
Changes in affiliate advances	(334		)	2,905			(287		)	(2,284		)	—
Issuance of affiliate short-term borrowings	(2,610		)	—			—			2,610			—
Reduction of affiliates long-term debt	1,010			—			—			(1,010		)	—
Life insurance proceeds	—			1,558			—			—			1,558
Purchase of life insurance contracts	—			(3,948		)	—			—			(3,948		)
Net cash used in investing activities	(1,938		)	(174,719		)	(5,491		)	(684		)	(182,832		)
Financing Activities:
Short-term borrowings	—			185,000			—			—			185,000
Repayment of short-term borrowings	(2,000		)	(85,000		)	—			—			(87,000		)
Changes in affiliate advances	—			718			(3,002		)	2,284			—
Proceeds from affiliate short-term borrowings	—			—			2,610			(2,610		)	—
Repayment of affiliates long-term borrowings	—			—			(1,010		)	1,010			—
Repayment of long-term debt	—			(2,336		)	(461		)	—			(2,797		)
Advances and contributions in aid for construction	—			14,900			64			—			14,964
Refunds of advances for construction	—			(6,311		)	(5		)	—			(6,316		)
Repurchase of common stock	(1,359		)	—			—			—			(1,359		)
Dividends paid to non-affiliates	(25,920		)	—			—			—			(25,920		)
Dividends paid to affiliates	—			(24,760		)	(1,160		)	25,920			—
Net cash (used in) provided by financing activities	(29,279		)	82,211			(2,964		)	26,604			76,572
Change in cash, cash equivalents, and restricted cash	(2,494		)	5,315			707			—			3,528
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	$	2,722		$	18,910		$	7,831		—			$	29,463