CONDENSED CONSOLIDATING FINANCIAL STATEMENTS |
On April 17, 2009, Cal Water issued $100.0 million aggregate principal amount of 5.875% First Mortgage Bonds due 2019, and on November 17, 2010, Cal Water issued $100.0 million aggregate principal amount of 5.500% First Mortgage Bonds due 2040, all of which are fully and unconditionally guaranteed by the Company. As a result of these guarantee arrangements, the Company is required to present the following condensed consolidating financial information. The investments in affiliates are accounted for and presented using the “equity method” of accounting The following tables present the Condensed Consolidating Balance Sheets as of December 31, 2018 and 2017, the Condensed Consolidating Statements of Income for the years ended December 31, 2018, 2017, and 2016, and the Condensed Consolidating Statements of Cash Flows for the years ended December 31, 2018, 2017, and 2016, of (i) California Water Service Group, the guarantor of the First Mortgage Bonds and the parent company; (ii) California Water Service Company, the issuer of the First Mortgage Bonds and a 100% owned consolidated subsidiary of California Water Service Group; and (iii) the other 100% owned non-guarantor consolidated subsidiaries of California Water Service Group. No other subsidiary of the Company guarantees the securities. The condensed consolidating statements of cash flows for the years ended December 31, 2017 and 2016 reflect the retrospective adoption of ASU 2016-09 (see Note 2), which affected California Water Service Company and the other subsidiaries. The Condensed Consolidating Statements of Income for the years ended December 31, 2017 and 2016 reflect the retrospective adoption of ASU 2017-07 (see Note 2), which affect California Water Service Company and the other subsidiaries. CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | Parent Company | | Cal Water | | All Other Subsidiaries | | Consolidating Adjustments | | Consolidated | | (In thousands) | | ASSETS | Utility plant: | |
| | |
| | |
| | |
| | |
| Utility plant | $ | 1,318 |
| | $ | 3,021,437 |
| | $ | 213,888 |
| | $ | (7,197 | ) | | $ | 3,229,446 |
| Less accumulated depreciation and amortization | (1,013 | ) | | (938,072 | ) | | (59,735 | ) | | 2,097 |
| | (996,723 | ) | Net utility plant | 305 |
| | 2,083,365 |
| | 154,153 |
| | (5,100 | ) | | 2,232,723 |
| Current assets: | |
| | |
| | |
| | |
| | |
| Cash and cash equivalents | 3,779 |
| | 33,763 |
| | 9,634 |
| | — |
| | 47,176 |
| Receivables and unbilled revenue | 126 |
| | 118,632 |
| | 4,201 |
| | — |
| | 122,959 |
| Receivables from affiliates | 21,318 |
| | 4,074 |
| | 61 |
| | (25,453 | ) | | — |
| Other current assets | 80 |
| | 16,907 |
| | 1,580 |
| | — |
| | 18,567 |
| Total current assets | 25,303 |
| | 173,376 |
| | 15,476 |
| | (25,453 | ) | | 188,702 |
| Other assets: | |
| | |
| | |
| | |
| | |
| Regulatory assets | — |
| | 349,414 |
| | 4,155 |
| | — |
| | 353,569 |
| Investments in affiliates | 733,156 |
| | — |
| | — |
| | (733,156 | ) | | — |
| Long-term affiliate notes receivable | 27,829 |
| | — |
| | — |
| | (27,829 | ) | | — |
| Other assets | 133 |
| | 58,959 |
| | 3,821 |
| | (203 | ) | | 62,710 |
| Total other assets | 761,118 |
| | 408,373 |
| | 7,976 |
| | (761,188 | ) | | 416,279 |
| TOTAL ASSETS | $ | 786,726 |
| | $ | 2,665,114 |
| | $ | 177,605 |
| | $ | (791,741 | ) | | $ | 2,837,704 |
| | CAPITALIZATION AND LIABILITIES | Capitalization: | |
| | |
| | |
| | |
| | |
| Common stockholders' equity | $ | 730,157 |
| | $ | 659,340 |
| | $ | 79,093 |
| | $ | (738,433 | ) | | $ | 730,157 |
| Affiliate long-term debt | — |
| | — |
| | 27,828 |
| | (27,828 | ) | | — |
| Long-term debt, net | — |
| | 709,444 |
| | 583 |
| | — |
| | 710,027 |
| Total capitalization | 730,157 |
| | 1,368,784 |
| | 107,504 |
| | (766,261 | ) | | 1,440,184 |
| Current liabilities: | |
| | |
| | |
| | |
| | |
| Current maturities of long-term debt, net | — |
| | 104,664 |
| | 247 |
| | — |
| | 104,911 |
| Short-term borrowings | 55,100 |
| | 10,000 |
| | — |
| | — |
| | 65,100 |
| Payables to affiliates | 17 |
| | 488 |
| | 24,948 |
| | (25,453 | ) | | — |
| Accounts payable | — |
| | 92,310 |
| | 3,270 |
| | — |
| | 95,580 |
| Accrued expenses and other liabilities | 107 |
| | 53,655 |
| | 1,813 |
| | — |
| | 55,575 |
| Total current liabilities | 55,224 |
| | 261,117 |
| | 30,278 |
| | (25,453 | ) | | 321,166 |
| Unamortized investment tax credits | — |
| | 1,649 |
| | — |
| | — |
| | 1,649 |
| Deferred income taxes | 1,376 |
| | 210,052 |
| | 1,648 |
| | (43 | ) | | 213,033 |
| Pension and postretirement benefits other than pensions | — |
| | 193,538 |
| | — |
| | — |
| | 193,538 |
| Regulatory and other long-term liabilities | (31 | ) | | 250,720 |
| | 5,817 |
| | 16 |
| | 256,522 |
| Advances for construction | — |
| | 185,843 |
| | 499 |
| | — |
| | 186,342 |
| Contributions in aid of construction | — |
| | 193,411 |
| | 31,859 |
| | — |
| | 225,270 |
| TOTAL CAPITALIZATION AND LIABILITIES | $ | 786,726 |
| | $ | 2,665,114 |
| | $ | 177,605 |
| | $ | (791,741 | ) | | $ | 2,837,704 |
|
CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | Parent Company | | Cal Water | | All Other Subsidiaries | | Consolidating Adjustments | | Consolidated | | (In thousands) | | 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 | — |
| | 401,668 |
| | 3,814 |
| | — |
| | 405,482 |
| 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 |
| | 461,249 |
| | 7,636 |
| | (725,336 | ) | | 468,872 |
| TOTAL ASSETS | $ | 750,485 |
| | $ | 2,576,276 |
| | $ | 172,559 |
| | $ | (754,610 | ) | | $ | 2,744,710 |
| | CAPITALIZATION AND LIABILITIES | Capitalization: | |
| | |
| | |
| | |
| | |
| Common stockholders' equity | $ | 693,462 |
| | $ | 632,059 |
| | $ | 77,647 |
| | $ | (703,947 | ) | | $ | 699,221 |
| Affiliate long-term debt | — |
| | — |
| | 26,441 |
| | (26,441 | ) | | — |
| Long-term debt, net | — |
| | 514,952 |
| | 841 |
| | — |
| | 515,793 |
| Total capitalization | 693,462 |
| | 1,147,011 |
| | 104,929 |
| | (730,388 | ) | | 1,215,014 |
| Current liabilities: | | | | | | | | | | Current maturities of long-term debt, net | — |
| | 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 |
| | 190,675 |
| | 2,424 |
| | (134 | ) | | 194,617 |
| Pension and postretirement benefits other than pensions | — |
| | 252,141 |
| | — |
| | — |
| | 252,141 |
| Regulatory and other long-term liabilities | — |
| | 217,684 |
| | 3,348 |
| | — |
| | 221,032 |
| 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 |
| | $ | 2,576,276 |
| | $ | 172,559 |
| | $ | (754,610 | ) | | $ | 2,744,710 |
|
CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | Parent Company | | Cal Water | | All Other Subsidiaries | | Consolidating Adjustments | | Consolidated | | (In thousands) | Operating revenue | $ | — |
| | $ | 656,939 |
| | $ | 41,257 |
| | $ | — |
| | $ | 698,196 |
| Operating expenses: | |
| | |
| | |
| | |
| | |
| Operations: | |
| | |
| | |
| | |
| | |
| Purchased water | — |
| | 206,675 |
| | 428 |
| | — |
| | 207,103 |
| Purchased power | — |
| | 22,460 |
| | 8,620 |
| | — |
| | 31,080 |
| Pump taxes | — |
| | 14,664 |
| | — |
| | — |
| | 14,664 |
| Administrative and general | — |
| | 90,563 |
| | 10,218 |
| | — |
| | 100,781 |
| Other operations | — |
| | 73,521 |
| | 6,930 |
| | (583 | ) | | 79,868 |
| Maintenance | — |
| | 23,573 |
| | 921 |
| | — |
| | 24,494 |
| Depreciation and amortization | 94 |
| | 78,601 |
| | 5,173 |
| | (87 | ) | | 83,781 |
| Income tax (benefit) expense | (960 | ) | | 17,678 |
| | 948 |
| | 923 |
| | 18,589 |
| Property and other taxes | — |
| | 24,190 |
| | 3,106 |
| | — |
| | 27,296 |
| Total operating (income) expenses | (866 | ) | | 551,925 |
| | 36,344 |
| | 253 |
| | 587,656 |
| Net operating income | 866 |
| | 105,014 |
| | 4,913 |
| | (253 | ) | | 110,540 |
| Other income and expenses: | |
| | |
| | |
| | |
| | |
| Non-regulated revenue | 2,333 |
| | 17,658 |
| | 1,197 |
| | (2,916 | ) | | 18,272 |
| Non-regulated expenses | — |
| | (22,122 | ) | | (665 | ) | | — |
| | (22,787 | ) | Other components of net periodic benefit cost | — |
|
| (8,886 | ) |
| (422 | ) |
| — |
|
| (9,308 | ) | Allowance for equity funds used during construction | — |
| | 3,954 |
| | — |
| | — |
| | 3,954 |
| Gain on non-utility properties | — |
| | 50 |
| | — |
| | — |
| | 50 |
| Income tax expense (benefit) on other income and expenses | (652 | ) | | 2,616 |
| | (63 | ) | | 816 |
| | 2,717 |
| Net other income (loss) | 1,681 |
| | (6,730 | ) | | 47 |
| | (2,100 | ) | | (7,102 | ) | Interest: | |
| | |
| | |
| | |
| | |
| Interest expense | 1,711 |
| | 38,288 |
| | 2,251 |
| | (2,333 | ) | | 39,917 |
| Allowance for borrowed funds used during construction | — |
| | (1,909 | ) | | (154 | ) | | — |
| | (2,063 | ) | Net interest expense | 1,711 |
| | 36,379 |
| | 2,097 |
| | (2,333 | ) | | 37,854 |
| Equity earnings of subsidiaries | 64,748 |
| | — |
| | — |
| | (64,748 | ) | | — |
| Net income | $ | 65,584 |
| | $ | 61,905 |
| | $ | 2,863 |
| | $ | (64,768 | ) | | $ | 65,584 |
|
CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | Parent Company | | Cal Water | | All Other Subsidiaries | | Consolidating Adjustments | | Consolidated | | (In thousands) | Operating revenue | $ | — |
| | $ | 635,604 |
| | $ | 40,509 |
| | $ | — |
| | $ | 676,113 |
| Operating expenses: | | | | | | | | | | Operations: | | | | | | | | | | Purchased water | — |
| | 198,682 |
| | 399 |
| | — |
| | 199,081 |
| Purchased power | — |
| | 21,021 |
| | 7,841 |
| | — |
| | 28,862 |
| Pump taxes | — |
| | 13,924 |
| | — |
| | — |
| | 13,924 |
| Administrative and general | — |
| | 83,163 |
| | 10,163 |
| | — |
| | 93,326 |
| Other operations | — |
| | 67,069 |
| | 7,903 |
| | (524 | ) | | 74,448 |
| Maintenance | — |
| | 21,595 |
| | 935 |
| | — |
| | 22,530 |
| Depreciation and amortization | 94 |
| | 72,327 |
| | 4,453 |
| | (91 | ) | | 76,783 |
| Income tax (benefit) expense | (498 | ) | | 33,313 |
| | 1,405 |
| | 1,059 |
| | 35,279 |
| Property and other taxes | (4 | ) | | 21,778 |
| | 3,023 |
| | — |
| | 24,797 |
| Total operating (income) expenses | (408 | ) | | 532,872 |
| | 36,122 |
| | 444 |
| | 569,030 |
| Net operating income | 408 |
| | 102,732 |
| | 4,387 |
| | (444 | ) | | 107,083 |
| Other Income and Expenses: | |
| | |
| | |
| | |
| | |
| Non-regulated revenue | 1,985 |
| | 14,608 |
| | 1,814 |
| | (2,509 | ) | | 15,898 |
| Non-regulated expenses | — |
| | (8,139 | ) | | (1,251 | ) | | — |
| | (9,390 | ) | Other components of net periodic benefit cost | — |
| | (9,032 | ) | | (556 | ) | | — |
| | (9,588 | ) | Allowance for equity funds used during construction | — |
| | 3,750 |
| | — |
| | — |
| | 3,750 |
| Gain on sale of non-utility properties | — |
| | 663 |
| | — |
| | — |
| | 663 |
| Income tax expense on other income and expenses | (809 | ) | | (1,714 | ) | | (47 | ) | | 1,022 |
| | (1,548 | ) | Net other income (loss) | 1,176 |
| | 136 |
| | (40 | ) | | (1,487 | ) | | (215 | ) | Interest: | |
| | |
| | |
| | |
| | |
| Interest expense | 1,131 |
| | 35,116 |
| | 2,026 |
| | (1,985 | ) | | 36,288 |
| Allowance for borrowed funds used during construction | — |
| | (2,319 | ) | | (41 | ) | | — |
| | (2,360 | ) | Net interest expense | 1,131 |
| | 32,797 |
| | 1,985 |
| | (1,985 | ) | | 33,928 |
| Equity earnings of subsidiaries | 72,487 |
| | — |
| | — |
| | (72,487 | ) | | — |
| Net income | $ | 72,940 |
| | $ | 70,071 |
| | $ | 2,362 |
| | $ | (72,433 | ) | | $ | 72,940 |
|
CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Year Ended December 31, 2016 | | | | | | | | | | | | | | | | | | | | | | Parent Company | | Cal Water | | All Other Subsidiaries | | Consolidating Adjustments | | Consolidated | | (In thousands) | Operating revenue | $ | — |
| | $ | 570,514 |
| | $ | 38,856 |
| | $ | — |
| | $ | 609,370 |
| Operating expenses: | |
| | |
| | |
| | |
| | |
| Operations: | |
| | |
| | |
| | |
| | |
| Purchased water | — |
| | 181,018 |
| | 497 |
| | — |
| | 181,515 |
| Purchased power | — |
| | 19,791 |
| | 7,389 |
| | — |
| | 27,180 |
| Pump taxes | — |
| | 11,298 |
| | — |
| | — |
| | 11,298 |
| Administrative and general | — |
| | 77,247 |
| | 10,354 |
| | — |
| | 87,601 |
| Other operations | — |
| | 73,918 |
| | 6,669 |
| | (505 | ) | | 80,082 |
| Maintenance | — |
| | 22,053 |
| | 940 |
| | — |
| | 22,993 |
| Depreciation and amortization | 220 |
| | 59,138 |
| | 4,337 |
| | (96 | ) | | 63,599 |
| Income tax (benefit) expense | (398 | ) | | 27,125 |
| | 1,498 |
| | 1,010 |
| | 29,235 |
| Property and other taxes | — |
| | 20,331 |
| | 2,900 |
| | — |
| | 23,231 |
| Total operating (income) expenses | (178 | ) | | 491,919 |
| | 34,584 |
| | 409 |
| | 526,734 |
| Net operating income | 178 |
| | 78,595 |
| | 4,272 |
| | (409 | ) | | 82,636 |
| Other Income and Expenses: | |
| | |
| | |
| | |
| | |
| Non-regulated revenue | 1,850 |
| | 15,114 |
| | 2,006 |
| | (2,385 | ) | | 16,585 |
| Non-regulated expenses | — |
| | (10,122 | ) | | (1,323 | ) | | — |
| | (11,445 | ) | Other components of net periodic benefit cost | — |
|
| (10,754 | ) |
| (119 | ) |
| — |
|
| (10,873 | ) | Gain on sale of non-utility properties | — |
| | (146 | ) | | — |
| | — |
| | (146 | ) | Income tax expense (benefit) on other income and expenses | (754 | ) | | 2,406 |
| | (205 | ) | | 972 |
| | 2,419 |
| Net other income (loss) | 1,096 |
| | (3,502 | ) | | 359 |
| | (1,413 | ) | | (3,460 | ) | Interest: | |
| | |
| | |
| | |
| | |
| Interest expense | 757 |
| | 32,682 |
| | 1,906 |
| | (1,879 | ) | | 33,466 |
| Allowance for borrowed funds used during construction | — |
| | (2,905 | ) | | (60 | ) | | — |
| | (2,965 | ) | Net interest expense | 757 |
| | 29,777 |
| | 1,846 |
| | (1,879 | ) | | 30,501 |
| Equity earnings of subsidiaries | 48,158 |
| | — |
| | — |
| | (48,158 | ) | | — |
| Net income | $ | 48,675 |
| | $ | 45,316 |
| | $ | 2,785 |
| | $ | (48,101 | ) | | $ | 48,675 |
|
CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | Parent Company | | Cal Water | | All Other Subsidiaries | | Consolidating Adjustments | | Consolidated | | (In thousands) | Operating activities: | |
| | |
| | |
| | |
| | |
| Net income | $ | 65,584 |
| | $ | 61,905 |
| | $ | 2,863 |
| | $ | (64,768 | ) | | $ | 65,584 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |
| | |
| | |
| | |
| | |
| Equity earnings of subsidiaries | (64,748 | ) | | — |
| | — |
| | 64,748 |
| | — |
| Dividends received from Affiliates | 36,043 |
| | — |
| | — |
| | (36,043 | ) | | — |
| Depreciation and amortization | 94 |
| | 80,442 |
| | 5,258 |
| | (87 | ) | | 85,707 |
| Change in value of life insurance contract | — |
| | 2,334 |
| | — |
| | — |
| | 2,334 |
| Stock-based compensation | 3,141 |
| | — |
| | — |
| | — |
| | 3,141 |
| Gain on sale of non-utility properties | — |
| | (50 | ) | | — |
| | — |
| | (50 | ) | Changes in normalized deferred income taxes | — |
| | 20,909 |
| | — |
| | — |
| | 20,909 |
| Allowance for equity funds used during construction | — |
| | (3,954 | ) | | — |
| | — |
| | (3,954 | ) | Changes in operating assets and liabilities | (290 | ) | | 16,943 |
| | (170 | ) | | — |
| | 16,483 |
| Other changes in noncurrent assets and liabilities | (348 | ) | | (12,284 | ) | | 1,390 |
| | 107 |
| | (11,135 | ) | Net cash provided by operating activities | 39,476 |
| | 166,245 |
| | 9,341 |
| | (36,043 | ) | | 179,019 |
| Investing activities: | |
| | |
| | |
| | |
| | |
| Utility plant expenditures | — |
| | (261,456 | ) | | (10,251 | ) | | — |
| | (271,707 | ) | Proceeds from sale of non-utility assets | — |
| | 59 |
| | — |
| | — |
| | 59 |
| Change in affiliate advances | (689 | ) | | 19 |
| | 53 |
| | 617 |
| | — |
| Issuance of affiliate short-term borrowings | (23,700 | ) | | — |
| | — |
| | 23,700 |
| | — |
| Collection of affiliate short-term debt | 20,000 |
| | — |
| | — |
| | (20,000 | ) | | — |
| Collection of affiliate long-term debt | 1,635 |
| | — |
| | — |
| | (1,635 | ) | | — |
| Life insurance benefits | — |
| | 3,491 |
| | — |
| | — |
| | 3,491 |
| Purchase of life insurance | — |
| | (4,925 | ) | | — |
| | — |
| | (4,925 | ) | Net cash used in investing activities | (2,754 | ) | | (262,812 | ) | | (10,198 | ) | | 2,682 |
| | (273,082 | ) | Financing Activities: | |
| | |
| | |
| | |
| | |
| Short-term borrowings | 20,000 |
| | 131,000 |
| | — |
| | — |
| | 151,000 |
| Repayment of short-term borrowings | (20,000 | ) | | (341,000 | ) | | — |
| | — |
| | (361,000 | ) | Change in affiliate advances | 17 |
| | (93 | ) | | 693 |
| | (617 | ) | | — |
| Proceeds from affiliate short-term borrowings | 20,000 |
| | — |
| | 3,700 |
| | (23,700 | ) | | — |
| Repayment of affiliates short-term debt | (20,000 | ) | | — |
| | — |
| | 20,000 |
| | — |
| Repayment of affiliates long-term debt | — |
|
| — |
|
| (1,635 | ) |
| 1,635 |
|
| — |
| Issuance of long-term debt, net of expenses | — |
|
| 299,383 |
|
| — |
|
| — |
|
| 299,383 |
| Retirement of long-term debt | — |
| | (16,200 | ) | | (332 | ) | | — |
| | (16,532 | ) | Advances and contribution in aid of construction | — |
| | 18,218 |
| | 394 |
| | — |
| | 18,612 |
| Refunds of advances for construction | — |
| | (7,279 | ) | | (18 | ) | | — |
| | (7,297 | ) | Repurchase of common stock | (1,645 | ) | | — |
| | — |
| | — |
| | (1,645 | ) | Dividends paid to non-affiliates | (36,043 | ) | | — |
| | — |
| | — |
| | (36,043 | ) | Dividends paid to affiliates | — |
| | (34,624 | ) | | (1,419 | ) | | 36,043 |
| | — |
| Net cash (used in) provided by financing activities | (37,671 | ) | | 49,405 |
| | 1,383 |
| | 33,361 |
| | 46,478 |
| Change in cash, cash equivalents, and restricted cash | (949 | ) | | (47,162 | ) | | 526 |
| | — |
| | (47,585 | ) | Cash, cash equivalents, and restricted cash at beginning of period | 4,728 |
| | 81,401 |
| | 9,171 |
| | — |
| | 95,300 |
| Cash, cash equivalents, and restricted cash at end of year | $ | 3,779 |
| | $ | 34,239 |
| | $ | 9,697 |
| | $ | — |
| | $ | 47,715 |
|
CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | Parent Company | | Cal Water | | All Other Subsidiaries | | Consolidating Adjustments | | Consolidated | | (In thousands) | Operating activities: | |
| | |
| | |
| | |
| | |
| Net income | $ | 72,940 |
| | $ | 70,071 |
| | $ | 2,362 |
| | $ | (72,433 | ) | | $ | 72,940 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | Equity earnings of subsidiaries | (72,487 | ) | | — |
| | — |
| | 72,487 |
| | — |
| Dividends received from Affiliates | 34,563 |
| | — |
| | — |
| | (34,563 | ) | | — |
| Depreciation and amortization | 94 |
| | 74,041 |
| | 4,548 |
| | (91 | ) | | 78,592 |
| Change in value of life insurance contract | — |
| | (3,058 | ) | | — |
| | — |
| | (3,058 | ) | Stock-based compensation | 3,118 |
| | — |
| | — |
| | — |
| | 3,118 |
| Gain on sale of non-utility properties | — |
| | (663 | ) | | — |
| | — |
| | (663 | ) | Changes in normalized deferred income taxes | — |
| | 21,087 |
| | — |
| | — |
| | 21,087 |
| Allowance for equity funds used during construction | — |
| | (3,750 | ) | | — |
| | — |
| | (3,750 | ) | Changes in operating assets and liabilities | 184 |
| | (36,611 | ) | | 38 |
| | — |
| | (36,389 | ) | Other changes in noncurrent assets and liabilities | 254 |
| | 13,101 |
| | 2,573 |
| | 37 |
| | 15,965 |
| Net cash provided by operating activities | 38,666 |
| | 134,218 |
| | 9,521 |
| | (34,563 | ) | | 147,842 |
| Investing activities: | |
| | |
| | |
| | |
| | |
| Utility plant expenditures | (4 | ) | | (252,055 | ) | | (7,135 | ) | | — |
| | (259,194 | ) | TCP settlement proceeds | — |
| | 56,004 |
| | — |
| | — |
| | 56,004 |
| Proceeds from sale of non-utility assets | — |
| | 666 |
| | — |
| | — |
| | 666 |
| Change in affiliate advances | 172 |
| | (485 | ) | | (50 | ) | | 363 |
| | — |
| Issuance of affiliate short-term borrowings | (2,610 | ) | | — |
| | — |
| | 2,610 |
| | — |
| Collection of affiliate long-term debt | 1,356 |
| | — |
| | — |
| | (1,356 | ) | | — |
| Life insurance benefits | — |
| | 1,558 |
| | — |
| | — |
| | 1,558 |
| Purchase of life insurance | — |
| | (5,605 | ) | | — |
| | — |
| | (5,605 | ) | Net cash used in investing activities | (1,086 | ) | | (199,917 | ) | | (7,185 | ) | | 1,617 |
| | (206,571 | ) | Financing Activities: | |
| | |
| | |
| | |
| | |
| Short-term borrowings | — |
| | 265,000 |
| | — |
| | — |
| | 265,000 |
| Repayment of short-term borrowings | (2,000 | ) | | (85,000 | ) | | — |
| | — |
| | (87,000 | ) | Change in affiliate advances | — |
| | 41 |
| | 322 |
| | (363 | ) | | — |
| Proceeds from affiliate short-term borrowings | — |
| | — |
| | 2,610 |
| | (2,610 | ) | | — |
| Repayment of affiliates long-term debt | — |
| | — |
| | (1,356 | ) | | 1,356 |
| | — |
| Retirement of long-term debt | — |
| | (26,223 | ) | | (606 | ) | | — |
| | (26,829 | ) | Advances and contribution in aid of construction | — |
| | 21,075 |
| | 294 |
| | — |
| | 21,369 |
| Refunds of advances for construction | — |
| | (8,373 | ) | | (5 | ) | | — |
| | (8,378 | ) | Repurchase of common stock | (1,505 | ) | | — |
| | — |
| | — |
| | (1,505 | ) | Dividends paid to non-affiliates | (34,563 | ) | | — |
| | — |
| | — |
| | (34,563 | ) | Dividends paid to affiliates | — |
| | (33,015 | ) | | (1,548 | ) | | 34,563 |
| | — |
| Net cash (used in) provided by financing activities | (38,068 | ) | | 133,505 |
| | (289 | ) | | 32,946 |
| | 128,094 |
| Change in cash, cash equivalents, and restricted cash | (488 | ) | | 67,806 |
| | 2,047 |
| | — |
| | 69,365 |
| 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 year | $ | 4,728 |
| | $ | 81,401 |
| | $ | 9,171 |
| | $ | — |
| | $ | 95,300 |
|
California Water Service Group CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2016 | | | | | | | | | | | | | | | | | | | | | | Parent Company | | Cal Water | | All Other Subsidiaries | | Consolidating Adjustments | | Consolidated | | (In thousands) | Operating activities: | |
| | |
| | |
| | |
| | |
| Net income | $ | 48,675 |
| | $ | 45,316 |
| | $ | 2,785 |
| | $ | (48,101 | ) | | $ | 48,675 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |
| | |
| | |
| | |
| | |
| Equity earnings of subsidiaries | (48,158 | ) | | — |
| | — |
| | 48,158 |
| | — |
| Dividends received from affiliates | 33,081 |
| | — |
| | — |
| | (33,081 | ) | | — |
| Depreciation and amortization | 220 |
| | 60,572 |
| | 4,507 |
| | (96 | ) | | 65,203 |
| Amortization of debt premium | — |
| | 871 |
| | — |
| | — |
| | 871 |
| Changes in normalized deferred income taxes | — |
| | 26,818 |
| | — |
| | — |
| | 26,818 |
| Change in value of life insurance contracts | — |
| | (1,026 | ) | | — |
| | — |
| | (1,026 | ) | Stock-based compensation | 2,849 |
| | — |
| | — |
| | — |
| | 2,849 |
| Loss on sale of non-utility properties | — |
| | 146 |
| | — |
| | — |
| | 146 |
| Write-off of capital costs | — |
| | 3,221 |
| | — |
| | — |
| | 3,221 |
| Changes in operating assets and liabilities | (14 | ) | | 6,534 |
| | 261 |
| | — |
| | 6,781 |
| Other changes in noncurrent assets and liabilities | 355 |
| | 4,645 |
| | 1,867 |
| | 39 |
| | 6,906 |
| Net cash provided by operating activities | 37,008 |
| | 147,097 |
| | 9,420 |
| | (33,081 | ) | | 160,444 |
| Investing activities: | |
| | |
| | |
| | |
| | |
| Utility plant expenditures | — |
| | (224,378 | ) | | (4,560 | ) | | — |
| | (228,938 | ) | Proceeds from sale of non-utility assets | — |
| | 395 |
| | — |
| | — |
| | 395 |
| Change in affiliate advances | 291 |
| | 1,111 |
| | (67 | ) | | (1,335 | ) | | — |
| Collection of affiliate short-term borrowings | 365 |
| | 42,100 |
| | — |
| | (42,465 | ) | | — |
| Issuance of affiliate short-term borrowings | (2,365 | ) | | (20,600 | ) | | — |
| | 22,965 |
| | — |
| Collection of affiliate long-term debt | 1,175 |
| | — |
| | — |
| | (1,175 | ) | | — |
| Life insurance benefits | — |
| | 495 |
| | — |
| | — |
| | 495 |
| Purchase of life insurance | — |
| | (2,857 | ) | | — |
| | — |
| | (2,857 | ) | Net cash used in investing activities | (534 | ) | | (203,734 | ) | | (4,627 | ) | | (22,010 | ) | | (230,905 | ) | Financing Activities: | |
| | |
| | |
| | |
| | |
| Short-term borrowings | 44,100 |
| | 101,000 |
| | — |
| | — |
| | 145,100 |
| Repayment of short-term borrowings | (20,615 | ) | | (61,000 | ) | | — |
| | — |
| | (81,615 | ) | Change in affiliate advances | — |
| | (128 | ) | | (1,207 | ) | | 1,335 |
| | — |
| Proceeds from affiliate short-term borrowings | 20,600 |
| | — |
| | 2,365 |
| | (22,965 | ) | | — |
| Repayment of affiliate short-term borrowings | (42,100 | ) | | — |
| | (365 | ) | | 42,465 |
| | — |
| Repayment of affiliates long-term debt | — |
| | — |
| | (1,175 | ) | | 1,175 |
| | — |
| Issuance of long term debt, net of expenses | — |
| | 49,823 |
| | — |
| | — |
| | 49,823 |
| Advances and contribution in aid of construction | — |
| | 21,329 |
| | 119 |
| | — |
| | 21,448 |
| Refunds of advances for construction | — |
| | (6,855 | ) | | (30 | ) | | — |
| | (6,885 | ) | Retirement of long-term debt | — |
| | (6,548 | ) | | (448 | ) | | — |
| | (6,996 | ) | Dividends paid to non-affiliates | (33,081 | ) | | — |
| | — |
| | — |
| | (33,081 | ) | Repurchase of common stock | (744 | ) | | — |
| | — |
| | — |
| | (744 | ) | Dividends paid to affiliates | — |
| | (32,105 | ) | | (976 | ) | | 33,081 |
| | — |
| Net cash (used in) provided by financing activities | (31,840 | ) | | 65,516 |
| | (1,717 | ) | | 55,091 |
| | 87,050 |
| Change in cash, cash equivalents, and restricted cash | 4,634 |
| | 8,879 |
| | 3,076 |
| | — |
| | 16,589 |
| Cash, cash equivalents, and restricted cash at beginning of period | 582 |
| | 4,716 |
| | 4,048 |
| | — |
| | 9,346 |
| Cash, cash equivalents, and restricted cash at end of year | $ | 5,216 |
| | $ | 13,595 |
| | $ | 7,124 |
| | $ | — |
| | $ | 25,935 |
|
|