Segment Information

3 Months Ended

Mar. 31, 2017

Note 12 – Segment Information

The Company has ten operating segments and one reportable segment. The Regulated segment, the Company’s single reportable segment, is comprised of eight operating segments representing our water and wastewater regulated utility companies which are organized by the states where we provide water and wastewater services. These operating segments are aggregated into one reportable segment because each of these operating segments has the following similarities: economic characteristics, nature of services, production processes, customers, water distribution or wastewater collection methods, and the nature of the regulatory environment.

Two operating segments are included within the Other category below. These segments are not quantitatively significant and are comprised of Aqua Resources and Aqua Infrastructure. Aqua Resources provides water and wastewater service through operating and maintenance contracts with municipal authorities and other parties close to our utility companies’ service territories; and offers, through a third party, water and sewer line repair service and protection solutions to households. Aqua Infrastructure provides non-utility raw water supply services for firms in the natural gas drilling industry. In addition to these segments, Other is comprised of other business activities not included in the reportable segment, including corporate costs that have not been allocated to the Regulated segment and intersegment eliminations. Corporate costs include general and administrative expenses, and interest expense.

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



	Three Months Ended						Three Months Ended
	March 31, 2017						March 31, 2016
	Regulated		Other		Consolidated		Regulated		Other		Consolidated
Operating revenues	$	186,349	$	1,438	$	187,787	$	186,006	$	6,601	$	192,607
Operations and maintenance expense		67,510		1,618		69,128		67,325		6,216		73,541
Depreciation		33,666		171		33,837		32,206		(61)		32,145
Operating income (loss)		71,067		(1,171)		69,896		72,850		(519)		72,331
Interest expense, net		19,777		1,549		21,326		18,801		1,052		19,853
Allowance for funds used during construction		3,193		-		3,193		2,308		-		2,308
Income tax expense (benefit)		3,856		(926)		2,930		3,673		(666)		3,007
Net income (loss)		50,896		(1,824)		49,072		52,894		(1,157)		51,737
Capital expenditures		94,409		153		94,562		72,389		595		72,984


	March 31,		December 31,
	2017		2016
Total assets:
Regulated	$	6,024,765	$	5,953,702
Other		210,830		205,289
Consolidated	$	6,235,595	$	6,158,991