Business Segments

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Business Segments

Business Segments

AWR has three reportable segments: water, electric and contracted services. Prior to July 1, 2020, GSWC had two segments, water and electric. On July 1, 2020, GSWC completed the transfer of the electric utility assets and liabilities from its electric division to BVESI, a separate legal entity and now a wholly owned subsidiary of AWR. On a stand-alone basis, AWR has no material assets other than its equity investments in its subsidiaries and note receivables therefrom, and deferred taxes. 

All activities of GSWC and BVESI are geographically located within California. Activities of ASUS and its subsidiaries are conducted in California, Florida, Georgia, Kansas, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia.  Each of ASUS’s wholly owned 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 AWR’s operating segments and AWR Parent. Total assets by segment are not presented below, as certain of Registrant’s assets are not tracked by segment.  The utility plant amounts are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash, excluding U.S. government- and third-party contractor-funded capital expenditures for ASUS and property installed by developers and conveyed to GSWC or BVESI.

	As Of And For The Three Months Ended September 30, 2020
					Contracted		AWR		Consolidated
(dollars in thousands)	Water		Electric		Services		Parent		AWR
Operating revenues	$	98,701	$	8,288	$	26,699	$	—	$	133,688
Operating income (loss)	33,149		1,865		4,794		(1)		39,807
Interest expense, net	5,806		54		(74)		59		5,845
Net property, plant and equipment	1,373,323		83,188		22,599		—		1,479,110
Depreciation and amortization expense (1)	7,835		626		887		—		9,348
Income tax expense (benefit)	7,683		533		1,150		(321)		9,045
Capital additions	28,076		3,039		1,122		—		32,237

	As Of And For The Three Months Ended September 30, 2019
					Contracted		AWR		Consolidated
(dollars in thousands)	Water		Electric		Services		Parent		AWR
Operating revenues	$	95,249	$	11,996	$	27,251	$	—	$	134,496
Operating income (loss)	31,310		5,672		5,745		(3)		42,724
Interest expense, net	5,206		234		(144)		157		5,453
Net property, plant and equipment	1,291,928		66,902		19,536		—		1,378,366
Depreciation and amortization expense (1)	7,690		669		647		—		9,006
Income tax expense (benefit)	6,720		1,663		1,391		(369)		9,405
Capital additions	25,267		2,864		1,802		—		29,933

	As Of And For The Nine Months Ended September 30, 2020
					Contracted		AWR		Consolidated
(dollars in thousands)	Water		Electric		Services		Parent		AWR
Operating revenues	$	257,199	$	26,935	$	79,909	$	—	$	364,043
Operating income (loss)	80,416		6,865		13,946		(5)		101,222
Interest expense, net	15,796		519		(371)		225		16,169
Net property, plant and equipment	1,373,323		83,188		22,599		—		1,479,110
Depreciation and amortization expense (1)	22,858		1,841		2,491		—		27,190
Income tax expense (benefit)	17,031		1,722		3,199		(725)		21,227
Capital additions	78,611		12,093		4,120		—		94,824

	As Of And For The Nine Months Ended September 30, 2019
					Contracted		AWR		Consolidated
(dollars in thousands)	Water		Electric		Services		Parent		AWR
Operating revenues	$	248,112	$	30,033	$	82,731	$	—	$	360,876
Operating income (loss)	77,835		8,511		16,010		(7)		102,349
Interest expense, net	15,555		933		(724)		470		16,234
Net property, plant and equipment	1,291,928		66,902		19,536		—		1,378,366
Depreciation and amortization expense (1)	22,484		1,870		2,139		—		26,493
Income tax expense (benefit)	15,205		2,124		3,816		(599)		20,546
Capital additions	99,939		4,852		6,297		—		111,088

(1)      Depreciation computed on GSWC’s and BVESI's transportation equipment is recorded in other operating expenses and totaled $84,000 and $80,000 for the three months ended September 30, 2020 and 2019, respectively, and $249,000 and $234,000 for the nine months ended September 30, 2020 and 2019, respectively.

The following table reconciles total net property, plant and equipment (a key figure for ratemaking) to total consolidated assets (in thousands):

	September 30,
	2020		2019
Total net property, plant and equipment	1,479,110		$	1,378,366
Other assets	247,308		226,015
Total consolidated assets	$	1,726,418	$	1,604,381