
	December 31,
		2018		2017
Assets
Current assets:
Accounts receivable, net	$	38	$	139
Accounts receivable - affiliates		104,494		55,108
Prepayments and other current assets		14,321		3,578
Total current assets		118,853		58,825

Deferred charges and other assets, net		29,247		29,397
Notes receivable - affiliates		369,740		329,738
Deferred income tax asset		35,696		32,782
Investment in subsidiaries		2,510,120		2,213,102
Total assets	$	3,063,656	$	2,663,844
Liabilities and Equity
Stockholders' equity	$	2,009,363	$	1,957,621

Long-term debt, excluding current portion, net of debt issuance costs		758,206		497,958

Current liabilities:
Current portion of long-term debt		50,000		30,800
Accrued interest		3,236		3,267
Accounts payable - affiliates		39,879		34,537
Interest rate swap agreements		59,779		-
Other accrued liabilities		11,583		9,329
Total current liabilities		164,477		77,933

Other liabilities		131,610		130,332
Total liabilities and equity	$	3,063,656	$	2,663,844

The accompanying condensed notes are an integral part of these condensed financial statements.


	Years ended December 31,
		2018		2017		2016
Other income	$	894	$	1,629	$	3,301
Operating expense and other expenses		19,728		53		4,569
Operating (loss) income		(18,834)		1,576		(1,268)
Interest expense, net		9,419		5,210		2,901
Change in fair value of interest rate swap agreements		59,779		-		-
Other expense (income)		95		-		(87)
Loss before equity in earnings of subsidiaries and income taxes		(88,127)		(3,634)		(4,082)
Equity in earnings of subsidiaries		261,700		244,327		236,309
Income before income taxes		173,573		240,693		232,227
Provision for income taxes (benefit)		(18,415)		955		(1,955)
Net income	$	191,988	$	239,738	$	234,182

Comprehensive income	$	191,988	$	239,929	$	234,164

Net income per common share:
Basic	$	1.08	$	1.35	$	1.32
Diluted	$	1.08	$	1.35	$	1.32

Average common shares outstanding during the period:
Basic		177,904		177,612		177,273
Diluted		178,399		178,175		177,846

The accompanying condensed notes are an integral part of these condensed financial statements.


	Years ended December 31,
		2018		2017		2016
Net cash flows (used in) from operating activities	$	(12,930)	$	98,821	$	84,649
Cash flows from investing activities:
Acquisitions of utility systems and other, net		(103,364)		(220)		(3,713)
Net proceeds from the sale of utility systems and other assets		-		-		205
(Increase) decrease in investment of subsidiary		(13,258)		20,021		(26,470)
Other		241		1,811		204
Net cash flows (used in) from investing activities		(116,381)		21,612		(29,774)
Cash flows from financing activities:
Proceeds from long-term debt		1,107,600		286,969		418,957
Repayments of long-term debt		(830,900)		(268,050)		(346,050)
Proceeds from issuing common stock		5,163		1,453		1,388
Proceeds from exercised stock options		1,459		2,873		4,260
Share-based compensation windfall tax benefits		-		-		1,332
Repurchase of common stock		(2,555)		(2,167)		(3,028)
Dividends paid on common stock		(150,736)		(140,660)		(130,923)
Other		(720)		(851)		(811)
Net cash flows from (used in) financing activities		129,311		(120,433)		(54,875)
Net change in cash and cash equivalents		-		-		-
Cash and cash equivalents at beginning of year		-		-		-
Cash and cash equivalents at end of year	$	-	$	-	$	-

See Note 1 - Basis of Presentation

The accompanying condensed notes are an integral part of these condensed financial statements.

Note 1 – Basis of Presentation – The accompanying condensed financial statements of Aqua America, Inc. (the “Parent”) should be read in conjunction with the consolidated financial statements and notes thereto of Aqua America, Inc. and subsidiaries (collectively, the “Registrant”) included in Part II, Item 8 of the Form 10-K. The Parent’s significant accounting policies are consistent with those of the Registrant.

The Parent borrows from third parties and provides funds to its subsidiaries, in support of their operations. Amounts owed to the Parent for borrowings under this facility are reflected as inter-company receivables on the condensed balance sheets. The interest rate charged to the subsidiaries is sufficient to cover the Parent’s interest costs under its associated borrowings.

As of December 31, 2018 and 2017, the Parent had a current accounts receivable – affiliates balance of $104,494 and $55,108. As of December 31, 2018 and 2017, the Parent had a notes receivable – affiliates balance of $369,740 and $329,738. The changes in these balances represent non-cash adjustments that are recorded through the Parent’s investment in subsidiaries.

In the ordinary course of business, the Parent indemnifies a third-party for surety bonds issued on behalf of subsidiary companies, guarantees the performance of one of its regulated utilities in a jurisdiction that requires such guarantees, and guarantees several projects associated with the treatment of water in a jurisdiction.

Note 2 – Dividends from subsidiaries – Dividends in the amount of $81,250 $51,100, and $45,750 were paid to the Parent by its wholly-owned subsidiaries during the years ended December 31, 2018, 2017, and 2016, respectively.

Note 3 – Long-term debt – the Parent has long-term debt under unsecured note purchase agreements with investors in addition to its $550,000 revolving credit agreement. Excluding amounts due under the revolving credit agreement, the debt maturities of the Parent’s long-term debt are as follows:


Year		Debt Maturity
2019	$	50,000
2020		28,200
2021		17,250
2022		17,250
2023		10,800
Thereafter		315,000