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 are geographically located within California. Activities of ASUS and the Military Utility Privatization Subsidiaries are conducted in California, Florida, Georgia, Kansas, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia. Each of the Military Utility Privatization 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 the Military Utility Privatization 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 plant balances 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, 2018
	GSWC				ASUS			AWR			Consolidated
(dollars in thousands)	Water		Electric		Contracts			Parent			AWR
Operating revenues	$	295,258	$	34,350	$	107,208		$	—		$	436,816
Operating income	74,342		6,220		20,414			7			100,983
Interest expense, net	18,403		1,328		(327		)	451			19,855
Utility Plant	1,218,468		62,624		15,218			—			1,296,310
Depreciation and amortization expense (1)	36,137		2,258		2,030						40,425
Income tax expense/(benefit)	12,391		1,212		4,939			(525		)	18,017
Capital additions	110,934		5,420		10,207			—			126,561



	As Of And For The Year Ended December 31, 2017
	GSWC				ASUS		AWR			Consolidated
(dollars in thousands)	Water		Electric		Contracts		Parent			AWR
Operating revenues	$	306,332	$	33,969	$	100,302	$	—		$	440,603
Operating income (loss) (2)	98,678		7,193		21,320		(96		)	127,095
Interest expense, net	18,909		1,380		255		248			20,792
Utility Plant	1,137,995		59,945		7,052		—			1,204,992
Depreciation and amortization expense (1)	35,706		2,146		1,179		—			39,031
Income tax expense/(benefit)	32,212		1,847		7,136		(2,221		)	38,974
Capital additions	104,546		5,941		2,639		—			113,126



	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) (2)	87,331		7,856		19,024		(19		)	114,192
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

____________________________

(1) Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $238,000, $242,000 and $259,000 for the years ended December 31, 2018, 2017 and 2016, respectively.

(2) Adjusted to conform to current-year presentation pursuant to the adoption of ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.

The following table reconciles total utility plant (a key figure for rate-making) to total consolidated assets (in thousands):



	December 31,
	2018		2017
Total utility plant	$	1,296,310	$	1,204,992
Other assets	205,123		211,742
Total consolidated assets	$	1,501,433	$	1,416,734