Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2012

Components of Long-Term Debt

	Rate	Weighted- Average Rate			Maturity Date	September 30, 2012		December 31, 2011
Long-term debt of American Water Capital Corp. (“AWCC”) (a)
Private activity bonds and government funded debt
Fixed rate	4.85%-6.75%		5.72	%	2018-2040	$	322,610	$	322,610
Senior notes
Fixed rate	5.39%-10.00%		6.25	%	2013-2040		3,089,409		3,089,409
Long-term debt of other subsidiaries
Private activity bonds and government funded debt
Fixed rate	0.00%-6.20%		4.78	%	2012-2041		1,056,460		1,206,332
Mortgage bonds
Fixed rate	5.48%-9.71%		7.40	%	2012-2039		697,800		697,800
Mandatory redeemable preferred stock	8.47%-9.75%		8.61	%	2019-2036		21,001		22,101
Notes payable and other (b)	9.49%-12.17%		11.65	%	2013-2026		1,416		1,691
Long-term debt							5,188,696		5,339,943
Unamortized debt discount, net (c)							41,952		43,888
Fair value adjustment to interest rate hedge							8,183		6,111
Total long-term debt						$	5,238,831	$	5,389,942

(a) AWCC, which is a wholly-owned subsidiary of the Company, has a strong support agreement with its parent that, under certain circumstances, is the functional equivalent of a guarantee.

(b) Includes capital lease obligations of $1,089 and $1,264 at September 30, 2012 and December 31, 2011, respectively.

(c) Includes fair value adjustments recognized in acquisition purchase accounting.

Long-Term Debt Issued

Company	Type	Interest Rate	Maturity	Amount
Other subsidiaries (1)	Private activity bonds and government funded debt – fixed rate	0.00%-5.00%	2013-2041	$	83,476
Total issuances				$	83,476

(1) Included in the issuance amount above was $68,746, which was initially kept in Trust pending the Company’s certification that it has incurred qualifying capital expenditures. These issuances have been presented as non-cash in the accompanying Consolidated Statements of Cash Flows. Subsequent releases of all or a lesser portion of these funds by the applicable Trust are reflected as the release of restricted funds and are included in investing activities in the accompanying Consolidated Statements of Cash Flows.

Long-Term Debt Retired Through Optional Redemption or Payment

Company	Type	Interest Rate			Maturity		Amount
Other subsidiaries	Mortgage bonds – fixed rate		7.95	%		2012	$	4,200
Other subsidiaries	Private activity bonds and government funded debt – fixed rate		0.00%-6.00%			2012-2041		256,834
Other subsidiaries	Mandatory redeemable preferred stock		4.60%-6.00%			2013-2019		1,100
Other	Capital leases and other							275
Total retirements and redemptions							$	262,409

Long-Term Debt Interest Income

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Interest income	$	2,837	$	2,641	$	8,470	$	8,044

Balance Sheet Classification

	September 30, 2012		December 31, 2011
Regulatory and other long-term assets
Other	$	8,209	$	5,824
Long-term debt
Long-term debt		8,183		6,111

Income Statement Classification

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Interest, net
Gain (loss) on swap	$	1,121		$	4,896		$	2,384		$	6,510
Gain (loss) on borrowing		(800	)		(4,797	)		(2,072	)		(6,230	)
Hedge ineffectiveness		321			99			312			280