Business Segments:

9 Months Ended

Sep. 30, 2012

Business Segments:

Business Segments:

Note 10 — Business Segments:

AWR has three reportable segments, water, electric and contracted services, whereas GSWC has two segments, water and electric. Within the segments, AWR has two principal business units: water and electric service utility operations conducted through GSWC, and one contracted services unit conducted through ASUS and its subsidiaries. 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.  The operating activities of CCWC have been included in discontinued operations as described in Note 9.  All activities of CCWC were located in the state of Arizona. GSWC is, and CCWC was, a rate-regulated utility.

Activities of ASUS and its subsidiaries are conducted in California, Georgia, Maryland, New Mexico, North Carolina, South Carolina, Texas, and Virginia.  Each of ASUS’s wholly owned subsidiaries is regulated 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 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 its subsidiaries, and other matters. The identifiable assets are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash and exclude property installed by developers and conveyed to GSWC and through May 31, 2011 for CCWC.

	As Of And For The Three Months Ended September 30, 2012
	GSWC				ASUS		AWR			Consolidated
(dollars in thousands)	Water		Electric		Contracts		Parent			AWR
Operating revenues	$	90,604	$	8,549	$	34,368	$	—		$	133,521
Operating income (loss)	28,355		1,606		6,545		(26		)	36,480
Interest expense, net	5,178		397		24		—			5,599
Utility plant	867,310		40,057		4,660		—			912,027
Depreciation and amortization expense	9,405		536		289		—			10,230
Capital additions	17,347		1,155		220		—			18,722

	As Of And For The Three Months Ended September 30, 2011
	GSWC				CCWC		ASUS		AWR			Consolidated
(dollars in thousands)	Water		Electric		Water		Contracts		Parent			AWR
Operating revenues	$	89,570	$	8,744	$	—	$	21,395	$	—		$	119,709
Operating income (loss)	26,752		1,648		—		4,025		(5		)	32,420
Interest expense, net	5,588		401		—		84		(81		)	5,992
Utility plant	848,647		38,063		—		4,424		—			891,134
Depreciation and amortization expense	8,832		502		—		220		—			9,554
Loss from discontinued operations, net of tax (2)	—		—				—		(18		)	(18		)
Capital additions	24,690		684		—		905		—			26,279

	As Of And For The Nine Months Ended September 30, 2012
	GSWC				ASUS		AWR			Consolidated
(dollars in thousands)	Water		Electric		Contracts		Parent			AWR
Operating revenues	$	237,447	$	27,735	$	89,298	$	—		$	354,480
Operating income (loss)	65,872		6,946		17,275		(121		)	89,972
Interest expense, net	15,399		1,186		118		(24		)	16,679
Utility plant	867,310		40,057		4,660		—			912,027
Depreciation and amortization expense	28,527		1,756		844		—			31,127
Capital additions	44,831		2,399		939		—			48,169

	As Of And For The Nine Months Ended September 30, 2011
	GSWC				CCWC			ASUS		AWR			Consolidated
(dollars in thousands)	Water		Electric		Water			Contracts		Parent			AWR
Operating revenues	$	234,047	$	27,178	$	—		$	62,620	$	—		$	323,845
Operating income (loss) (1)	65,320		4,829		(356		)	9,820		(59		)	79,554
Interest expense, net	16,780		1,217		—			309		1			18,307
Utility plant	848,647		38,063		—			4,424		—			891,134
Depreciation and amortization expense	26,662		1,509		—			658		—			28,829
Income from discontinued operations, net of tax (2)	—		—		1,612			—		2,238			3,850
Capital additions	59,776		2,313		—			1,485		—			63,574

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

	September 30,
	2012		2011
Total utility plant	$	912,027	891,134
Other assets	377,611		304,714
Total consolidated assets	$	1,289,638	$	1,195,848

(1)Operating income (loss) include CCWC’s allocated corporate overhead costs that are now primarily at GSWC.

(2)In accordance with the accounting guidance relating to assets held for sale, Registrant did not record depreciation expense for CCWC in 2011.