Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Consolidating Balance Sheet

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING BALANCE SHEET

As of June 30, 2019

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Utility plant:
Utility plant	$	1,318		$	3,132,488		$	219,556		$	(7,197	)	$	3,346,165
Less accumulated depreciation and amortization	(1,060		)	(981,960		)	(63,079		)	2,139			(1,043,960		)
Net utility plant	258			2,150,528			156,477			(5,058		)	2,302,205
Current assets:
Cash and cash equivalents	1,523			44,079			8,958			—			54,560
Receivables and unbilled revenue	—			121,618			5,743			—			127,361
Receivables from affiliates	27,087			1,219			116			(28,422		)	—
Other current assets	379			21,840			1,890			—			24,109
Total current assets	28,989			188,756			16,707			(28,422		)	206,030
Other assets:
Regulatory assets	—			369,320			4,299			—			373,619
Investments in affiliates	723,345			—			—			(723,345		)	—
Long-term affiliate notes receivable	26,965			—			—			(26,965		)	—
Other assets	490			77,721			4,766			(236		)	82,741
Total other assets	750,800			447,041			9,065			(750,546		)	456,360
TOTAL ASSETS	$	780,047		$	2,786,325		$	182,249		$	(784,026	)	$	2,964,595
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	723,164		$	648,366		$	80,226		$	(728,592	)	$	723,164
Affiliate long-term debt	—			—			—			—			—
Long-term debt, net	—			807,163			27,495			(26,965		)	807,693
Total capitalization	723,164			1,455,529			107,721			(755,557		)	1,530,857
Current liabilities:
Current maturities of long-term debt, net	—			5,113			199			—			5,312
Short-term borrowings	55,100			110,000			—			—			165,100
Payables to affiliates	—			2,917			25,505			(28,422		)	—
Accounts payable	—			93,307			4,069			—			97,376
Accrued expenses and other liabilities	343			59,872			3,386			—			63,601
Total current liabilities	55,443			271,209			33,159			(28,422		)	331,389
Unamortized investment tax credits	—			1,649			—			—			1,649
Deferred income taxes	1,440			213,236			2,236			(32		)	216,880
Pension and postretirement benefits other than pensions	—			201,476			—			—			201,476
Regulatory liabilities and other	—			257,124			6,918			(15		)	264,027
Advances for construction	—			189,152			490			—			189,642
Contributions in aid of construction	—			196,950			31,725			—			228,675
TOTAL CAPITALIZATION AND LIABILITIES	$	780,047		$	2,786,325		$	182,249		$	(784,026	)	$	2,964,595

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
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 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

Schedule of Condensed Consolidating Statement of Income

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the three months ended June 30, 2019

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	167,450		$	11,581		$	—		$	179,031
Operating expenses:
Operations:
Water production costs	—			62,143			2,492			—			64,635
Administrative and general	23			23,207			2,204			—			25,434
Other operations	—			20,857			1,829			(144		)	22,542
Maintenance	—			5,423			269			—			5,692
Depreciation and amortization	24			20,814			1,508			(20		)	22,326
Income tax (benefit) expense	(144		)	3,792			455			218			4,321
Property and other taxes	—			6,305			763			—			7,068
Total operating (income) expenses	(97		)	142,541			9,520			54			152,018
Net operating income	97			24,909			2,061			(54		)	27,013
Other income and expenses:
Non-regulated revenue	614			4,881			394			(759		)	5,130
Non-regulated expenses	—			(3,665		)	(235		)	—			(3,900		)
Other components of net periodic benefit cost	—			(1,164		)	(28		)	—			(1,192		)
Allowance for equity funds used during construction	—			1,686			—			—			1,686
Income tax expense on other income and expenses	(171		)	(486		)	(43		)	213			(487		)
Net other income	443			1,252			88			(546		)	1,237
Interest:
Interest expense	467			11,708			617			(614		)	12,178
Allowance for borrowed funds used during construction	—			(862		)	(62		)	—			(924		)
Net interest expense	467			10,846			555			(614		)	11,254
Equity earnings of subsidiaries	16,923			—			—			(16,923		)	—
Net income	$	16,996		$	15,315		$	1,594		$	(16,909	)	$	16,996

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	$	—		$	164,602		$	10,336		$	—		$	174,938
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		)	4,463			328			201			4,870
Property and other taxes	—			5,682			725			—			6,407
Total operating (income) expenses	(98		)	139,395			8,768			34			148,099
Net operating income	98			25,207			1,568			(34		)	26,839
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	14,717			—			—			(14,717		)	—
Net income	$	14,805		$	13,679		$	1,021		$	(14,700	)	$	14,805

Schedule of Condensed Consolidating Statement of Cash Flows

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended June 30, 2019

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating activities:
Net income	$	9,356		$	7,374		$	1,786		$	(9,160	)	$	9,356
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	(9,189		)	—			—			9,189			—
Dividends received from affiliates	19,000			—			—			(19,000		)	—
Depreciation and amortization	47			42,717			3,021			(41		)	45,744
Changes in value of life insurance contracts	—			(3,147		)	—			—			(3,147		)
Allowance for equity funds used during construction	—			(3,219		)	—			—			(3,219		)
Changes in operating assets and liabilities	63			(16,581		)	(319		)	—			(16,837		)
Other changes in noncurrent assets and liabilities	3,763			6,289			1,430			12			11,494
Net cash provided by operating activities	23,040			33,433			5,918			(19,000		)	43,391
Investing activities:
Utility plant expenditures	—			(116,384		)	(5,552		)	—			(121,936		)
Changes in affiliate advances	(1,453		)	2,856			(165		)	(1,238		)	—
Issuance of affiliate short-term borrowings	(4,300		)	—			—			4,300			—
Reduction of affiliates long-term debt	848			—			—			(848		)	—
Net cash used in investing activities	(4,905		)	(113,528		)	(5,717		)	2,214			(121,936		)
Financing Activities:
Short-term borrowings	—			190,000			—			—			190,000
Repayment of short-term borrowings	—			(90,000		)	—			—			(90,000		)
Changes in affiliate advances	(17		)	2,430			(3,651		)	1,238			—
Proceeds from affiliate short-term borrowings	—			—			4,300			(4,300		)	—
Repayment of affiliates long-term borrowings	—			—			(848		)	848			—
Issuance of long term debt, net of expenses	—			398,442			—			—			398,442
Repayment of long-term debt	—			(401,256		)	(102		)	—			(401,358		)
Advances and contributions in aid of construction	—			12,679			76			—			12,755
Refunds of advances for construction	—			(3,554		)	(1		)	—			(3,555		)
Repurchase of common stock	(2,203		)	—			—			—			(2,203		)
Issuance of common stock	829			—			—			—			829
Dividends paid to non-affiliates	(19,000		)	—			—			—			(19,000		)
Dividends paid to affiliates	—			(18,348		)	(652		)	19,000			—
Net cash (used in) provided by financing activities	(20,391		)	90,393			(878		)	16,786			85,910
Change in cash, cash equivalents, and restricted cash	(2,256		)	10,298			(677		)	—			7,365
Cash, cash equivalents, and restricted cash at beginning of period	3,779			34,238			9,698			—			47,715
Cash, cash equivalents, and restricted cash at end of period	$	1,523		$	44,536		$	9,021		—			$	55,080

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended June 30, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating activities:
Net income	$	14,043		$	12,742		$	1,001		$	(13,743	)	$	14,043
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	(13,775		)	—			—			13,775			—
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			8,087			431			11			10,139
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 for 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