Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of significant components of the deferred tax assets and liabilities from continuing operations

The significant components of the deferred tax assets and liabilities as reflected in the balance sheets at December 31, 2018 and 2017 are:

	AWR						GSWC
	December 31,						December 31,
(dollars in thousands)	2018			2017			2018			2017
Deferred tax assets:
Regulatory-liability-related (1)	$	33,419		$	34,567		$	33,419		$	34,567
Contributions and advances	5,281			4,679			5,666			5,022
Other	2,988			1,934			3,310			1,625
Total deferred tax assets	$	41,688		$	41,180		$	42,395		$	41,214
Deferred tax liabilities:
Fixed assets	$	(131,413	)	$	(130,115	)	$	(135,617	)	$	(134,437	)
Regulatory-asset-related: depreciation and other	(18,146		)	(16,851		)	(18,146		)	(16,851		)
Balancing and memorandum accounts (non-flow-through)	(6,325		)	(9,905		)	(6,873		)	(10,706		)
Total deferred tax liabilities	(155,884		)	(156,871		)	(160,636		)	(161,994		)
Accumulated deferred income taxes - net	$	(114,196	)	$	(115,691	)	$	(118,241	)	$	(120,780	)

Schedule of current and deferred components of income tax expense from continuing operations

The current and deferred components of income tax expense are as follows:

	AWR
	Year Ended December 31,
(dollars in thousands)	2018			2017		2016
Current
Federal	$	17,252		$	20,978	$	2,297
State	6,538			5,844		4,798
Total current tax expense	$	23,790		$	26,822	$	7,095
Deferred
Federal	$	(4,334	)	$	11,543	$	26,715
State	(1,439		)	609		925
Total deferred tax (benefit) expense	(5,773		)	12,152		27,640
Total income tax expense	$	18,017		$	38,974	$	34,735

	GSWC
	Year Ended December 31,
(dollars in thousands)	2018			2017		2016
Current
Federal	$	14,488		$	15,044	$	(3,115	)
State	5,932			5,045		3,625
Total current tax expense	$	20,420		$	20,089	$	510
Deferred
Federal	$	(5,531	)	$	11,770	$	25,864
State	(1,286		)	2,200		2,235
Total deferred tax (benefit) expense	(6,817		)	13,970		28,099
Total income tax expense	$	13,603		$	34,059	$	28,609

Schedule of reconciliations of the effective tax rates to the federal statutory rate

The reconciliations of the effective tax rates to the federal statutory rate are as follows:

	AWR
	Year Ended December 31,
(dollars in thousands)	2018			2017			2016
Federal taxes on pretax income at statutory rate (21% in 2018; 35% in 2017 and 2016)	$	17,196		$	37,919		$	33,067
Increase (decrease) in taxes resulting from:
State income tax, net of federal benefit	3,693			4,382			3,029
Change in tax rate	(14		)	(82		)	—
Excess deferred tax amortization	(2,101		)	—			—
Flow-through on fixed assets	429			845			994
Flow-through on pension costs	373			412			(247		)
Flow-through on removal costs	(1,445		)	(1,980		)	(2,068		)
Domestic production activities deduction	(26		)	(1,421		)	(78		)
Investment tax credit	(69		)	(93		)	(83		)
Other – net	(19		)	(1,008		)	121
Total income tax expense from operations	$	18,017		$	38,974		$	34,735
Pretax income from operations	$	81,888		$	108,341		$	94,478
Effective income tax rate	22.0		%	36.0		%	36.8		%

	GSWC
	Year Ended December 31,
(dollars in thousands)	2018			2017			2016
Federal taxes on pretax income at statutory rate (21% in 2018; 35% in 2017 and 2016)	$	12,939		$	30,736		$	26,452
Increase (decrease) in taxes resulting from:
State income tax, net of federal benefit	3,335			4,924			3,118
Change in tax rate	—			1,063			—
Excess deferred tax amortization	(2,101		)	—			—
Flow-through on fixed assets	429			845			994
Flow-through on pension costs	373			412			(247		)
Flow-through on removal costs	(1,445		)	(1,980		)	(2,068		)
Domestic production activities deduction	(25		)	(1,148		)	—
Investment tax credit	(69		)	(93		)	(82		)
Other – net	167			(700		)	442
Total income tax expense from operations	$	13,603		$	34,059		$	28,609
Pretax income from operations	$	61,615		$	87,816		$	75,578
Effective income tax rate	22.1		%	38.8		%	37.9		%