Business Segments

9 Months Ended

Sep. 30, 2019

AWR has three reportable segments, water, electric and contracted services, whereas GSWC has two segments, water and electric. On a stand-alone basis, AWR has no material assets other than its equity investments in its subsidiaries and note receivables therefrom, and deferred taxes.

All activities of GSWC, a rate-regulated utility, are geographically located within California. Activities of ASUS and its subsidiaries are conducted in California, Georgia, Florida, Kansas, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia. Each of ASUS’s wholly owned subsidiaries is regulated, if applicable, by the state in which the subsidiary primarily conducts water and/or wastewater operations. Fees charged for operations and maintenance and renewal and replacement services are based upon the terms of the contracts with the U.S. government, which have been filed, as appropriate, with the commissions in the states in which ASUS’s subsidiaries are incorporated.

The tables below set forth information relating to GSWC’s operating segments, ASUS and its subsidiaries and other matters. Total assets by segment are not presented below, as certain of Registrant’s assets are not tracked by segment. The utility plant amounts are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash, excluding U.S. government- and third-party contractor-funded capital expenditures for ASUS and property installed by developers and conveyed to GSWC.



	As Of And For The Three Months Ended September 30, 2019
	GSWC							AWR			Consolidated
(dollars in thousands)	Water		Electric		ASUS			Parent			AWR
Operating revenues	$	95,249	$	11,996	$	27,251		$	—		$	134,496
Operating income (loss)	31,310		5,672		5,745			(3		)	42,724
Interest expense, net	5,206		234		(144		)	157			5,453
Utility plant	1,291,928		66,902		19,536			—			1,378,366
Depreciation and amortization expense (1)	7,690		669		647			—			9,006
Income tax expense (benefit)	6,720		1,663		1,391			(369		)	9,405
Capital additions	25,267		2,864		1,802			—			29,933



	As Of And For The Three Months Ended September 30, 2018
	GSWC							AWR			Consolidated
(dollars in thousands)	Water		Electric		ASUS			Parent			AWR
Operating revenues	$	87,689	$	7,875	$	28,618		$	—		$	124,182
Operating income (loss)	26,710		830		6,437			(2		)	33,975
Interest expense, net	5,039		291		(118		)	95			5,307
Utility plant	1,187,786		61,404		13,725			—			1,262,915
Depreciation and amortization expense (1)	9,058		565		495			—			10,118
Income tax expense (benefit)	5,247		167		1,606			(81		)	6,939
Capital additions	24,590		1,140		2,816			—			28,546



	As Of And For The Nine Months Ended September 30, 2019
	GSWC							AWR			Consolidated
(dollars in thousands)	Water		Electric		ASUS			Parent			AWR
Operating revenues	$	248,112	$	30,033	$	82,731		$	—		$	360,876
Operating income (loss)	77,835		8,511		16,010			(7		)	102,349
Interest expense, net	15,555		933		(724		)	470			16,234
Utility plant	1,291,928		66,902		19,536			—			1,378,366
Depreciation and amortization expense (1)	22,484		1,870		2,139			—			26,493
Income tax expense (benefit)	15,205		2,124		3,816			(599		)	20,546
Capital additions	99,939		4,852		6,297			—			111,088



	As Of And For The Nine Months Ended September 30, 2018
	GSWC							AWR			Consolidated
(dollars in thousands)	Water		Electric		ASUS			Parent			AWR
Operating revenues	$	228,834	$	25,548	$	71,429		$	—		$	325,811
Operating income (loss)	62,012		4,470		11,759			(7		)	78,234
Interest expense, net	15,095		1,014		(255		)	252			16,106
Utility plant	1,187,786		61,404		13,725			—			1,262,915
Depreciation and amortization expense (1)	26,693		1,694		1,407			—			29,794
Income tax expense (benefit)	10,805		938		2,865			(718		)	13,890
Capital additions	75,976		3,264		8,088			—			87,328

(1) Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $80,000

and $58,000 for the three months ended September 30, 2019 and 2018, respectively, and $234,000 and $179,000 for the nine months ended September 30, 2019 and 2018, respectively.

The following table reconciles total utility plant (a key figure for ratemaking) to total consolidated assets (in thousands):



	September 30,
	2019		2018
Total utility plant	$	1,378,366	$	1,262,915
Other assets	226,015		202,127
Total consolidated assets	$	1,604,381	$	1,465,042