Capitalization (Tables)

12 Months Ended

Dec. 31, 2019

CAPITALIZATION:

Schedule of maturities of long term debt

Bond Series QQ, RR, SS, 2019A and 2019B are term bonds with single maturity dates subsequent to 2024. Principal repayments for all series of the Company’s long-term debt except for Bond Series BB, CC, EE, FF and II extend beyond 2024. The aggregate annual principal repayment obligations for all long-term debt over the next five years are shown below:

	Year	(Millions of Dollars) Annual Maturities
	2020	$ 7.2
	2021	$ 7.2
	2022	$ 6.7
	2023	$ 6.2
	2024	$ 6.0
* Included in Other Current Liabilities

Schedule of earnings per share

The following table presents the calculation of basic and diluted earnings per share (EPS) for the years ended December 31, 2019, 2018 and 2017. Basic EPS is computed on the basis of the weighted average number of shares outstanding. Diluted EPS assumes the conversion of both the Convertible Preferred Stock $7.00 Series and $8.00 Series (fully converted into common stock in September 2019).

	(In Thousands, Except Per Share Amounts)
	2019					2018					2017
Basic:	Income			Shares		Income			Shares		Income			Shares
Net Income	$	33,888			16,685	$	32,452			16,384	$	22,809			16,330
Preferred Dividend		(132	)				(144	)				(144	)
Earnings Applicable to Common Stock	$	33,756			16,685	$	32,308			16,384	$	22,665			16,330
Basic EPS	$	2.02				$	1.97				$	1.39
Diluted:
Earnings Applicable to Common Stock	$	33,756			16,685	$	32,308			16,384	$	22,665			16,330
$7.00 Series Dividend		67			115		67			115		67			115
$8.00 Series Dividend		12			29		24			41		24			41
Adjusted Earnings Applicable to Common Stock	$	33,835			16,829	$	32,399			16,540	$	22,756			16,486
Diluted EPS	$	2.01				$	1.96				$	1.38

Schedule of carrying amount and estimated fair value of bonds

The following methods and assumptions were used by the Company in estimating its fair value disclosure for financial instruments for which it is practicable to estimate that value. The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and notes payable approximate their respective fair values due to the short-term maturities of these instruments. The fair value of First Mortgage and State Revolving Fund Bonds (collectively, the Bonds) issued by Middlesex is based on quoted market prices for similar issues. Under the fair value hierarchy, the fair value of cash and cash equivalents is classified as a Level 1 measurement and the fair value of notes payable and the Bonds in the table below are classified as Level 2 measurements. The carrying amount and fair value of the Bonds were as follows:

	(Thousands of Dollars) At December 31,
	2019				2018
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Bonds	$	151,361	$	160,772	$	101,411	$	102,789