Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of Condensed Consolidating Balance Sheet

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING BALANCE SHEET

As of March 31, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Utility plant:
Utility plant	$	1,321		$	2,824,077		$	207,409		$	(7,196	)	$	3,025,611
Less accumulated depreciation and amortization	(943		)	(887,919		)	(55,743		)	2,032			(942,573		)
Net utility plant	378			1,936,158			151,666			(5,164		)	2,083,038
Current assets:
Cash and cash equivalents	2,242			24,471			7,989			—			34,702
Receivables and unbilled revenue	—			107,838			3,790			—			111,628
Receivables from affiliates	22,494			858			157			(23,509		)	—
Other current assets	400			17,894			1,161			—			19,455
Total current assets	25,136			151,061			13,097			(23,509		)	165,785
Other assets:
Regulatory assets	—			401,169			3,872			—			405,041
Investments in affiliates	686,964			—			—			(686,964		)	—
Long-term affiliate notes receivable	26,024			—			—			(26,024		)	—
Other assets	90			58,937			3,820			(204		)	62,643
Total other assets	713,078			460,106			7,692			(713,192		)	467,684
TOTAL ASSETS	$	738,592		$	2,547,325		$	172,455		$	(741,865	)	$	2,716,507
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	681,311		$	614,914		$	77,291		$	(692,205	)	$	681,311
Affiliate long-term debt	—			—			26,024			(26,024		)	—
Long-term debt, less current maturities	—			514,894			776			—			515,670
Total capitalization	681,311			1,129,808			104,091			(718,229		)	1,196,981
Current liabilities:
Current maturities of long-term debt	—			5,604			320			—			5,924
Short-term borrowings	55,100			220,000			—			—			275,100
Payables to affiliates	245			157			23,107			(23,509		)	—
Accounts payable	—			69,950			3,606			—			73,556
Accrued expenses and other liabilities	215			106,958			2,564			—			109,737
Total current liabilities	55,560			402,669			29,597			(23,509		)	464,317
Unamortized investment tax credits	—			1,724			—			—			1,724
Deferred income taxes	1,721			188,278			2,441			(127		)	192,313
Pension and postretirement benefits other than pensions	—			256,520			—			—			256,520
Regulatory liabilities and other	—			229,072			3,515			—			232,587
Advances for construction	—			183,980			499			—			184,479
Contributions in aid of construction	—			155,274			32,312			—			187,586
TOTAL CAPITALIZATION AND LIABILITIES	$	738,592		$	2,547,325		$	172,455		$	(741,865	)	$	2,716,507

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2017

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Utility plant:
Utility plant	$	1,321		$	2,771,259		$	204,795		$	(7,196	)	$	2,970,179
Less accumulated depreciation and amortization	(919		)	(868,762		)	(54,543		)	2,010			(922,214		)
Net utility plant	402			1,902,497			150,252			(5,186		)	2,047,965
Current assets:
Cash and cash equivalents	4,728			80,940			9,108			—			94,776
Receivables and unbilled revenue	—			110,928			4,526			—			115,454
Receivables from affiliates	19,952			4,093			43			(24,088		)	—
Other current assets	80			16,569			994			—			17,643
Total current assets	24,760			212,530			14,671			(24,088		)	227,873
Other assets:
Regulatory assets	—			397,333			3,814			—			401,147
Investments in affiliates	698,690			—			—			(698,690		)	—
Long-term affiliate notes receivable	26,441			—			—			(26,441		)	—
Other assets	192			59,581			3,822			(205		)	63,390
Total other assets	725,323			456,914			7,636			(725,336		)	464,537
TOTAL ASSETS	$	750,485		$	2,571,941		$	172,559		$	(754,610	)	$	2,740,375
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	693,462		$	626,300		77,647			$	(703,947	)	$	693,462
Affiliate long-term debt	—			—			26,441			(26,441		)	—
Long-term debt, less current maturities	—			514,952			841			—			515,793
Total capitalization	693,462			1,141,252			104,929			(730,388		)	1,209,255
Current liabilities:
Current maturities of long-term debt	—			15,598			322			—			15,920
Short-term borrowings	55,100			220,000			—			—			275,100
Payables to affiliates	—			580			23,508			(24,088		)	—
Accounts payable	—			90,561			3,394			—			93,955
Accrued expenses and other liabilities	271			104,002			1,711			—			105,984
Total current liabilities	55,371			430,741			28,935			(24,088		)	490,959
Unamortized investment tax credits	—			1,724			—			—			1,724
Deferred income taxes	1,652			189,004			2,424			(134		)	192,946
Pension and postretirement benefits other than pensions	—			252,141			—			—			252,141
Regulatory and other liabilities	—			220,779			3,348			—			224,127
Advances for construction	—			181,979			523			—			182,502
Contributions in aid of construction	—			154,321			32,400			—			186,721
TOTAL CAPITALIZATION AND LIABILITIES	$	750,485		$	2,571,941		$	172,559		$	(754,610	)	$	2,740,375

Schedule of Condensed Consolidating Statement of Income

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the three months ended March 31, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	123,570		$	8,677		$	—		$	132,247
Operating expenses:
Operations:
Water production costs	—			45,623			1,983			—			47,606
Administrative and general	—			23,606			2,713			—			26,319
Other operations	—			16,217			1,569			(146		)	17,640
Maintenance	—			5,244			195			—			5,439
Depreciation and amortization	23			19,613			1,101			(22		)	20,715
Income tax benefit	(78		)	(340		)	(8		)	197			(229		)
Property and other taxes	—			6,007			697			—			6,704
Total operating (income) expenses	(55		)	115,970			8,250			29			124,194
Net operating income	55			7,600			427			(29		)	8,053
Other income and expenses:
Non-regulated revenue	531			4,244			320			(676		)	4,419
Non-regulated expenses	—			(5,293		)	(144		)	—			(5,437		)
Other components of net periodic benefit cost	—			(2,447		)	(99		)	—			(2,546		)
Allowance for equity funds used during construction	—			911			—			—			911
Income tax (expense) benefit on other income and expenses	(148		)	741			(24		)	189			758
Total other income (loss)	383			(1,844		)	53			(487		)	(1,895		)
Interest:
Interest expense	258			8,934			537			(531		)	9,198
Allowance for borrowed funds used during construction	—			(458		)	(37		)	—			(495		)
Net interest expense	258			8,476			500			(531		)	8,703
Equity loss of subsidiaries	(2,725		)	—			—			2,725			—
Net loss	$	(2,545	)	$	(2,720	)	$	(20	)	$	2,740		$	(2,545	)

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the three months ended March 31, 2017

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	113,342		$	8,694		$	—		$	122,036
Operating expenses:
Operations:
Water production costs	—			40,189			1,879			—			42,068
Administrative and general	—			20,126			2,620			—			22,746
Other operations	—			14,400			1,850			(126		)	16,124
Maintenance	—			5,906			206			—			6,112
Depreciation and amortization	23			18,111			1,090			(23		)	19,201
Income tax benefit	(103		)	(946		)	(92		)	257			(884		)
Property and other taxes	(4		)	5,412			708			—			6,116
Total operating (income) expenses	(84		)	103,198			8,261			108			111,483
Net operating income	84			10,144			433			(108		)	10,553
Other income and expenses:
Non-regulated revenue	481			3,135			454			(608		)	3,462
Non-regulated expenses	—			(1,747		)	(307		)	—			(2,054		)
Other components of net periodic benefit cost	—			(2,350		)	(153		)	—			(2,503		)
Allowance for equity funds used during construction	—			779			—			—			779
Income tax expense on other income and expenses	(196		)	(883		)	(58		)	248			(889		)
Total other income (loss)	285			(1,066		)	(64		)	(360		)	(1,205		)
Interest:
Interest expense	235			8,470			486			(481		)	8,710
Allowance for borrowed funds used during construction	—			(476		)	(18		)	—			(494		)
Net interest expense	235			7,994			468			(481		)	8,216
Equity earnings of subsidiaries	998			—			—			(998		)	—
Net income	$	1,132		$	1,084		$	(99	)	$	(985	)	$	1,132

Schedule of Condensed Consolidating Statement of Cash Flows

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months endedMarch 31, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating activities:
Net loss	$	(2,545	)	$	(2,720	)	$	(20	)	$	2,740		$	(2,545	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Equity loss of subsidiaries	2,725			—			—			(2,725		)	—
Dividends received from affiliates	9,003			—			—			(9,003		)	—
Depreciation and amortization	23			20,081			1,125			(22		)	21,207
Changes in value of life insurance contracts	—			1,137			—			—			1,137
Allowance for equity funds used during construction	—			(911		)	—			—			(911		)
Changes in operating assets and liabilities	(376		)	1,728			1,729			—			3,081
Other changes in noncurrent assets and liabilities	806			5,368			102			7			6,283
Net cash provided by operating activities	9,636			24,683			2,936			(9,003		)	28,252
Investing activities:
Utility plant expenditures	—			(67,841		)	(2,809		)	—			(70,650		)
Changes in affiliate advances	(2,520		)	3,235			(153		)	(562		)	—
Reduction of affiliates long-term debt	395			—			—			(395		)	—
Net cash used in investing activities	(2,125		)	(64,606		)	(2,962		)	(957		)	(70,650		)
Financing Activities:
Short-term borrowings	—			45,022			—			—			45,022
Repayment of short-term borrowings	—			(45,022		)	—			—			(45,022		)
Changes in affiliate advances	245			(423		)	(384		)	562			—
Repayment of affiliates long-term borrowings	—			—			(395		)	395			—
Repayment of long-term debt	—			(10,158		)	(66		)	—			(10,224		)
Advances and contributions in aid of construction	—			4,663			100			—			4,763
Refunds of advances for construction	—			(1,908		)	(10		)	—			(1,918		)
Repurchase of common stock	(1,239		)	—			—			—			(1,239		)
Dividends paid to non-affiliates	(9,003		)	—			—			—			(9,003		)
Dividends paid to affiliates	—			(8,665		)	(338		)	9,003			—
Net cash used in financing activities	(9,997		)	(16,491		)	(1,093		)	9,960			(17,621		)
Change in cash, cash equivalents, and restricted cash	(2,486		)	(56,414		)	(1,119		)	—			(60,019		)
Cash, cash equivalents, and restricted cash at beginning of period	4,728			81,453			9,171			—			95,352
Cash, cash equivalents, and restricted cash at end of period	$	2,242		$	25,039		$	8,052		—			$	35,333

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2017

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating activities:
Net income (loss)	$	1,132		$	1,084		$	(99	)	$	(985	)	$	1,132
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity earnings of subsidiaries	(998		)	—			—			998			—
Dividends received from affiliates	8,634			—			—			(8,634		)	—
Depreciation and amortization	23			18,542			1,116			(23		)	19,658
Changes in value of life insurance contracts	—			(319		)	—			—			(319		)
Allowance for equity funds used during construction	—			(779		)	—			—			(779		)
Changes in operating assets and liabilities	(67		)	(11,003		)	696			—			(10,374		)
Other changes in noncurrent assets and liabilities	483			4,241			245			10			4,979
Net cash provided by operating activities	9,207			11,766			1,958			(8,634		)	14,297
Investing activities:
Utility plant expenditures	—			(50,509		)	(1,344		)	—			(51,853		)
Changes in affiliate advances	593			955			(175		)	(1,373		)	—
Issuance of affiliate short-term borrowings	(325		)	—			—			325			—
Reduction of affiliates long-term debt	332			—			—			(332		)	—
Life insurance proceeds	—			450			—			—			450
Purchase of life insurance contracts	—			(836		)	—			—			(836		)
Net cash provided by (used in) investing activities	600			(49,940		)	(1,519		)	(1,380		)	(52,239		)
Financing Activities:
Short-term borrowings	—			35,000			—			—			35,000
Repayment of short-term borrowings	(2,000		)	—			—			—			(2,000		)
Changes in affiliate advances	715			(475		)	(1,613		)	1,373			—
Proceeds from affiliate short-term borrowings	—			—			325			(325		)	—
Repayment of affiliates long-term borrowings	—			—			(332		)	332			—
Repayment of long-term debt	—			(170		)	(116		)	—			(286		)
Advances and contributions in aid for construction	—			3,952			23			—			3,975
Refunds of advances for construction	—			(2,236		)	—			—			(2,236		)
Repurchase of common stock	(1,119		)	—			—			—			(1,119		)
Dividends paid to non-affiliates	(8,634		)	—			—			—			(8,634		)
Dividends paid to affiliates	—			(8,234		)	(400		)	8,634			—
Net cash (used in) provided by financing activities	(11,038		)	27,837			(2,113		)	10,014			24,700
Change in cash, cash equivalents, and restricted cash	(1,231		)	(10,337		)	(1,674		)	—			(13,242		)
Cash, cash equivalents, and restricted cash at beginning of period	5,216			13,595			7,124			—			25,935
Cash, cash equivalents, and restricted cash at end of period	$	3,985		$	3,258		$	5,450		—			$	12,693