Business Segments

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Business Segments

Business Segments

AWR has three reportable segments: water, electric and contracted services. Prior to July 1, 2020, GSWC had two segments, water and electric. On July 1, 2020, GSWC completed the transfer of the electric utility assets and liabilities from its electric division to BVESI, a separate legal entity and now a wholly owned subsidiary of AWR (Note 11). On a stand-alone basis, AWR has no material assets or liabilities other than its equity investments in its subsidiaries, note payables to its subsidiaries and deferred taxes. 

All activities of GSWC and BVESI are geographically located within California. Activities of ASUS and its subsidiaries are conducted in California, Florida, Georgia, 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 AWR’s operating segments and AWR Parent. 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 or BVESI.

	As Of And For The Three Months Ended September 30, 2021
					Contracted		AWR		Consolidated
(dollars in thousands)	Water		Electric		Services		Parent		AWR
Operating revenues	$	102,768	$	8,564	$	25,423	$	—	$	136,755
Operating income (loss)	35,459		2,053		5,273		(1)		42,784
Interest expense, net	5,098		101		(141)		162		5,220
Net property, plant and equipment	1,471,740		101,952		20,854		—		1,594,546
Depreciation and amortization expense (1)	8,272		644		910		—		9,826
Income tax expense	7,993		537		1,265		83		9,878
Capital additions	26,490		3,941		143		—		30,574

	As Of And For The Three Months Ended September 30, 2020
					Contracted		AWR		Consolidated
(dollars in thousands)	Water		Electric		Services		Parent		AWR
Operating revenues	$	98,701	$	8,288	$	26,699	$	—	$	133,688
Operating income (loss)	33,149		1,865		4,794		(1)		39,807
Interest expense, net	5,806		54		(74)		59		5,845
Net property, plant and equipment	1,373,323		83,188		22,599		—		1,479,110
Depreciation and amortization expense (1)	7,835		626		887		—		9,348
Income tax expense (benefit)	7,683		533		1,150		(321)		9,045
Capital additions	28,076		3,039		1,122		—		32,237

	As Of And For The Nine Months Ended September 30, 2021
					Contracted		AWR		Consolidated
(dollars in thousands)	Water		Electric		Services		Parent		AWR
Operating revenues	$	269,430	$	28,211	$	84,588	$	—	$	382,229
Operating income (loss)	87,295		7,296		16,375		(6)		110,960
Interest expense, net	16,273		275		(458)		617		16,707
Net property, plant and equipment	1,471,740		101,952		20,854		—		1,594,546
Depreciation and amortization expense (1)	24,547		1,925		2,684		—		29,156
Income tax expense (benefit)	17,718		1,879		3,927		(270)		23,254
Capital additions	90,299		15,139		1,283		—		106,721

	As Of And For The Nine Months Ended September 30, 2020
					Contracted		AWR		Consolidated
(dollars in thousands)	Water		Electric		Services		Parent		AWR
Operating revenues	$	257,199	$	26,935	$	79,909	$	—	$	364,043
Operating income (loss)	80,416		6,865		13,946		(5)		101,222
Interest expense, net	15,796		519		(371)		225		16,169
Net property, plant and equipment	1,373,323		83,188		22,599		—		1,479,110
Depreciation and amortization expense (1)	22,858		1,841		2,491		—		27,190
Income tax expense (benefit)	17,031		1,722		3,199		(725)		21,227
Capital additions	78,611		12,093		4,120		—		94,824

(1)      Depreciation computed on GSWC’s and BVESI's transportation equipment is recorded in other operating expenses and totaled $94,000 and $84,000 for the three months ended September 30, 2021 and 2020, respectively, and totaled $283,000 and $249,000 for the nine months ended September 30, 2021 and 2020, respectively.

The following table reconciles total net property, plant and equipment (a key figure for ratemaking) to total consolidated assets (in thousands):

	September 30,
	2021		2020
Total net property, plant and equipment	1,594,546		$	1,479,110
Other assets	280,254		247,308
Total consolidated assets	$	1,874,800	$	1,726,418