Segment Information

9 Months Ended

Sep. 30, 2016

Segment Information [Abstract]

Segment Information

Note 12 – Segment Information

The Company has identified ten operating segments and has one reportable segment named the “Regulated” segment.  The reportable segment is comprised of eight operating segments for the Company’s water and wastewater regulated utility companies which are organized by the states where we provide these services.  In addition, two segments are not quantitatively significant to be reportable and are comprised of the Company’s market-based activities:  Aqua Resources, Inc.and Aqua Infrastructure, LLC.  Aqua Resources provides water and wastewater service through operating and maintenance contracts with municipal authorities and other parties in close proximity to our utility companies’ service territories;and offers, through a third party, water and wastewater line repair service and protection solutions to households.  In addition, Aqua Resources provided liquid waste hauling and disposal services in a business unit that the Company sold in the second quarter of 2016, and that was reported as assets held for sale in the Company’s consolidated balance sheets included in this report.  Additionally, Aqua Resources installs and tests devices that prevent the contamination of potable water; designs and builds water and wastewater systems; and provides other market-based water and wastewater services in business units that, in the second quarter of 2016, the Company decided to market for sale.  Further, in the third quarter of 2016, the Company decided to market for sale a business unit within Aqua Resources, which inspects, cleans and repairs storm and sanitary wastewater lines.  These business units are reported as assets held for sale in the Company’s consolidated balance sheets included in this report.  Aqua Infrastructure provides non-utility raw water supply services for firms in the natural gas drilling industry.  These two segments are included as a component of “Other” in the tables below.  Also included in “Other” are corporate costs that have not been allocated to the Regulated segment and intersegment eliminations.  Corporate costs include general and administrative expense, and interest expense. 

The following table presents information about the Company’s reportable segment:

	Three Months Ended						Three Months Ended
	September 30, 2016						September 30, 2015
	Regulated		Other		Consolidated		Regulated		Other		Consolidated
Operating revenues	$	222,231	$	4,362	$	226,593	$	213,023	$	8,028	$	221,051
Operations and maintenance expense		73,013		6,799		79,812		72,373		6,146		78,519
Depreciation		34,025		(144)		33,881		31,890		91		31,981
Operating income (loss)		100,563		(2,764)		97,799		93,828		1,244		95,072
Interest expense, net		19,167		1,001		20,168		18,169		1,070		19,239
Allowance for funds used during construction		2,267		-		2,267		1,708		-		1,708
Income tax expense (benefit)		9,027		(616)		8,411		9,883		(299)		9,584
Net income (loss)		74,681		(1,511)		73,170		67,654		(225)		67,429
	Nine Months Ended						Nine Months Ended
	September 30, 2016						September 30, 2015
	Regulated		Other		Consolidated		Regulated		Other		Consolidated
Operating revenues	$	606,323	$	16,753	$	623,076	$	590,519	$	26,618	$	617,137
Operations and maintenance expense		210,014		17,333		227,347		210,639		20,815		231,454
Depreciation		98,445		(800)		97,645		93,276		254		93,530
Operating income (loss)		255,431		(1,808)		253,623		243,101		3,384		246,485
Interest expense, net		57,061		3,075		60,136		54,015		2,789		56,804
Allowance for funds used during construction		6,446		-		6,446		3,930		-		3,930
Income tax expense (benefit)		18,610		(1,677)		16,933		19,679		(582)		19,097
Net income (loss)		186,579		(2,046)		184,533		173,670		(314)		173,356
Capital expenditures		269,046		973		270,019		256,924		554		257,478

	September 30,		December 31,
	2016		2015
Total assets:
Regulated	$	5,853,618	$	5,541,335
Other		182,407		176,538
Consolidated	$	6,036,025	$	5,717,873