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SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PUGET ENERGY
 12 Months Ended
Dec. 31, 2018
Condensed Financial Information Disclosure [Abstract]  
Schedule I: Condensed Financial Information of Puget Energy
SCHEDULE I:  CONDENSED FINANCIAL INFORMATION OF PUGET ENERGY

Puget Energy
Condensed Statements of Income and Comprehensive Income (Loss)
(Dollars in Thousands)

 
Year Ended December 31,
 
2018
 
2017
 
2016
Non-utility expense and other
$
(1,345
)
 
$
(1,466
)
 
$
(5,252
)
Other income (deductions):
 

 
 

 
 

Equity in earnings of subsidiary
320,122

 
323,568

 
385,838

Non-hedged interest rate swap expense
—

 
28

 
(1,062
)
Interest income
4,273

 
1,039

 
2

Interest expense
(108,816
)
 
(106,072
)
 
(104,600
)
Income taxes
21,388

 
(41,903
)
 
37,973

Net income (loss)
235,622

 
175,194

 
312,899

Comprehensive income (loss)
$
182,702

 
$
184,624

 
$
306,453



See accompanying notes to the condensed financial statements.

Puget Energy
Condensed Balance Sheets
(Dollars in Thousands)

 
December 31,
 
2018
 
2017
Assets:
 
 
 
Investment in subsidiaries
$
3,820,347

 
$
3,721,553

Other property and investments:
 

 
 

Goodwill
1,656,513

 
1,656,513

Current assets:
 

 
 

Cash
2,067

 
751

Receivables from affiliates1
138,714

 
78,570

Total current assets
140,781

 
79,321

Long-term assets:
 

 
 

Deferred income taxes
221,660

 
208,889

Other
2,040

 
3,196

Total long-term assets
223,700

 
212,085

Total assets
$
5,841,341

 
$
5,669,472

Capitalization and liabilities:
 

 
 

Common equity
$
3,860,728

 
$
3,750,030

Long-term debt
1,954,205

 
1,892,672

Total capitalization
5,814,933

 
5,642,702

Current liabilities:
 

 
 

Account Payable
260

 
1,042

Interest
26,148

 
25,728

Total current liabilities
26,408

 
26,770

Commitments and contingencies (Note 16)
 
 
 
Total capitalization and liabilities
$
5,841,341

 
$
5,669,472

_______________
1 
Eliminated in consolidation.


See accompanying notes to the condensed financial statements.
Puget Energy
Condensed Statements of Cash Flows
(Dollars in Thousands)

 
Year Ended December 31,
 
2018
 
2017
 
2016
Operating activities:
 
 
 
 
 
Net cash provided by (used in) operating activities
79,176

 
$
139,005

 
$
145,719

Investing activities:
 

 
 

 
 

Investment in subsidiaries
—

 
(24,222
)
 
—

(Increase) decrease in loan to subsidiary
(59,864
)
 
(78,155
)
 
—

Other
—

 
(437
)
 
(6,078
)
Net cash provided by (used in) investing activities
(59,864
)
 
(102,814
)
 
(6,078
)
Financing activities:
 

 
 

 
 

Dividends paid
(77,204
)
 
(123,307
)
 
(148,965
)
Issuance of bond
209,300

 
—

 
—

Issuance/redemption of term-loan and other long-term debt
(150,000
)
 
90,120

 
12,480

Issue costs and others
(92
)
 
(2,650
)
 
(3,398
)
Net cash provided by (used in) by financing activities
(17,996
)
 
(35,837
)
 
(139,883
)
Increase (decrease) in cash
1,316

 
354

 
(242
)
Cash at beginning of year
751

 
397

 
639

Cash at end of year
$
2,067

 
$
751

 
$
397


See accompanying notes to the condensed financial statements.
NOTES TO CONDENSED FINANCIAL STATEMENTS

(1) Basis of Presentation

Puget Energy is an energy services holding company that conducts substantially all of its business operations through its regulated subsidiary, PSE. Puget Energy also has a wholly-owned non-regulated subsidiary, named Puget LNG, LLC (Puget LNG). Puget LNG was formed in November 2016, and has the sole purpose of owning, developing and financing the non-regulated activity of a liquefied natural gas (LNG) facility at the Port of Tacoma, Washington. These condensed financial statements and related footnotes have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X. These financial statements, in which Puget Energy’s subsidiaries have been included using the equity method, should be read in conjunction with the consolidated financial statements and notes thereto of Puget Energy included in Item 8, "Financial Statements and Supplementary Data" of this Form 10-K. Puget Energy owns 100% of the common stock of its subsidiaries.
Equity earnings of subsidiary included earnings from PSE of $317.2 million, $320.1 million and $380.6 million for the years ended December 31, 2018, 2017 and 2016, respectively, and business combination accounting adjustments under ASC 805 recorded at Puget Energy for PSE of $4.7 million, $3.9 million and $5.2 million for the years ended December 31, 2018, 2017 and 2016, respectively. Investment in subsidiaries includes Puget Energy business combination accounting adjustments under ASC 805 that are recorded at Puget Energy.

(2) Debt

For information concerning Puget Energy’s long-term debt obligations, see Note 7, "Long-Term Debt" to the consolidated financial statements included in Item 8 of this report.

(3) Commitments and Contingencies

For information concerning Puget Energy’s material contingencies and guarantees, see Note 16, "Commitments and Contingencies" to the consolidated financial statements included in Item 8 of this report.