Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Consolidating Balance Sheet

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING BALANCE SHEET

As of March 31, 2019

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Utility plant:
Utility plant	$	1,318		$	3,070,584		$	216,444		$	(7,197	)	$	3,281,149
Less accumulated depreciation and amortization	(1,037		)	(961,282		)	(61,389		)	2,118			(1,021,590		)
Net utility plant	281			2,109,302			155,055			(5,079		)	2,259,559
Current assets:
Cash and cash equivalents	905			47,587			11,742			—			60,234
Receivables and unbilled revenue	157			103,631			5,029			—			108,817
Receivables from affiliates	25,460			2,744			48			(28,252		)	—
Other current assets	505			21,657			1,512			—			23,674
Total current assets	27,027			175,619			18,331			(28,252		)	192,725
Other assets:
Regulatory assets	—			362,726			4,195			—			366,921
Investments in affiliates	715,928			—			—			(715,928		)	—
Long-term affiliate notes receivable	27,321			—			—			(27,321		)	—
Other assets	451			76,460			4,751			(205		)	81,457
Total other assets	743,700			439,186			8,946			(743,454		)	448,378
TOTAL ASSETS	$	771,008		$	2,724,107		$	182,332		$	(776,785	)	$	2,900,662
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	714,129		$	642,214		$	78,976		$	(721,190	)	$	714,129
Affiliate long-term debt	—			—			27,321			(27,321		)	—
Long-term debt, net	—			710,049			553			—			710,602
Total capitalization	714,129			1,352,263			106,850			(748,511		)	1,424,731
Current liabilities:
Current maturities of long-term debt, net	—			104,730			280			—			105,010
Short-term borrowings	55,100			70,000			—			—			125,100
Payables to affiliates	—			1,259			26,993			(28,252		)	—
Accounts payable	299			78,619			4,362			—			83,280
Accrued expenses and other liabilities	68			67,535			3,050			—			70,653
Total current liabilities	55,467			322,143			34,685			(28,252		)	384,043
Unamortized investment tax credits	—			1,649			—			—			1,649
Deferred income taxes	1,412			208,268			1,740			(38		)	211,382
Pension and postretirement benefits other than pensions	—			200,953			—			—			200,953
Regulatory liabilities and other	—			257,783			6,756			16			264,555
Advances for construction	—			186,390			487			—			186,877
Contributions in aid of construction	—			194,658			31,814			—			226,472
TOTAL CAPITALIZATION AND LIABILITIES	$	771,008		$	2,724,107		$	182,332		$	(776,785	)	$	2,900,662

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Utility plant:
Utility plant	$	1,318		$	3,021,437		$	213,888		$	(7,197	)	$	3,229,446
Less accumulated depreciation and amortization	(1,013		)	(938,072		)	(59,735		)	2,097			(996,723		)
Net utility plant	305			2,083,365			154,153			(5,100		)	2,232,723
Current assets:
Cash and cash equivalents	3,779			33,763			9,634			—			47,176
Receivables and unbilled revenue	126			118,632			4,201			—			122,959
Receivables from affiliates	21,318			4,074			61			(25,453		)	—
Other current assets	80			16,907			1,580			—			18,567
Total current assets	25,303			173,376			15,476			(25,453		)	188,702
Other assets:
Regulatory assets	—			349,414			4,155			—			353,569
Investments in affiliates	733,156			—			—			(733,156		)	—
Long-term affiliate notes receivable	27,829			—			—			(27,829		)	—
Other assets	133			58,959			3,821			(203		)	62,710
Total other assets	761,118			408,373			7,976			(761,188		)	416,279
TOTAL ASSETS	$	786,726		$	2,665,114		$	177,605		$	(791,741	)	$	2,837,704
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	730,157		$	659,340		79,093			$	(738,433	)	$	730,157
Affiliate long-term debt	—			—			27,828			(27,828		)	—
Long-term debt, less current maturities	—			709,444			583			—			710,027
Total capitalization	730,157			1,368,784			107,504			(766,261		)	1,440,184
Current liabilities:
Current maturities of long-term debt	—			104,664			247			—			104,911
Short-term borrowings	55,100			10,000			—			—			65,100
Payables to affiliates	17			488			24,948			(25,453		)	—
Accounts payable	—			92,310			3,270			—			95,580
Accrued expenses and other liabilities	107			53,655			1,813			—			55,575
Total current liabilities	55,224			261,117			30,278			(25,453		)	321,166
Unamortized investment tax credits	—			1,649			—			—			1,649
Deferred income taxes	1,376			210,052			1,648			(43		)	213,033
Pension and postretirement benefits other than pensions	—			193,538			—			—			193,538
Regulatory and other liabilities	(31		)	250,720			5,817			16			256,522
Advances for construction	—			185,843			499			—			186,342
Contributions in aid of construction	—			193,411			31,859			—			225,270
TOTAL CAPITALIZATION AND LIABILITIES	$	786,726		$	2,665,114		$	177,605		$	(791,741	)	$	2,837,704

Schedule of Condensed Consolidating Statement of Income

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the three months ended March 31, 2019

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	116,074		$	10,037		$	—		$	126,111
Operating expenses:
Operations:
Water production costs	—			43,426			2,166			—			45,592
Administrative and general	—			26,203			2,894			—			29,097
Other operations	—			16,122			1,845			(146		)	17,821
Maintenance	—			6,223			232			—			6,455
Depreciation and amortization	23			20,887			1,479			(21		)	22,368
Income tax (benefit) expense	(135		)	(3,105		)	31			218			(2,991		)
Property and other taxes	—			6,506			787			—			7,293
Total operating (income) expenses	(112		)	116,262			9,434			51			125,635
Net operating income (loss)	112			(188		)	603			(51		)	476
Other income and expenses:
Non-regulated revenue	613			4,628			419			(759		)	4,901
Non-regulated expenses	—			(2,038		)	(181		)	—			(2,219		)
Other components of net periodic benefit cost	—			(1,229		)	(30		)	—			(1,259		)
Allowance for equity funds used during construction	—			1,533			—			—			1,533
Income tax expense on other income and expenses	(172		)	(810		)	(58		)	212			(828		)
Net other income	441			2,084			150			(547		)	2,128
Interest:
Interest expense	459			10,613			616			(613		)	11,075
Allowance for borrowed funds used during construction	—			(776		)	(55		)	—			(831		)
Net interest expense	459			9,837			561			(613		)	10,244
Equity loss of subsidiaries	(7,734		)	—			—			7,734			—
Net (loss) income	$	(7,640	)	$	(7,941	)	$	192		$	7,749		$	(7,640	)

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	$	—		$	125,876		$	8,677		$	—		$	134,553
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) expense	(78		)	183			(8		)	197			294
Property and other taxes	—			6,007			697			—			6,704
Total operating (income) expenses	(55		)	116,493			8,250			29			124,717
Net operating income	55			9,383			427			(29		)	9,836
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
Net 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	(942		)	—			—			942			—
Net loss	$	(762	)	$	(937	)	$	(20	)	$	957		$	(762	)

Schedule of Condensed Consolidating Statement of Cash Flows

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2019

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating activities:
Net income (loss)	$	(7,640	)	$	(7,941	)	$	192		$	7,749		$	(7,640	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity loss of subsidiaries	7,734			—			—			(7,734		)	—
Dividends received from affiliates	9,493			—			—			(9,493		)	—
Depreciation and amortization	23			21,394			1,497			(21		)	22,893
Changes in value of life insurance contracts	—			(2,254		)	—			—			(2,254		)
Allowance for equity funds used during construction	—			(1,533		)	—			—			(1,533		)
Changes in operating assets and liabilities	(195		)	(201		)	1,551			—			1,155
Other changes in noncurrent assets and liabilities	2,476			4,951			87			6			7,520
Net cash provided by operating activities	11,891			14,416			3,327			(9,493		)	20,141
Investing activities:
Utility plant expenditures	—			(57,410		)	(2,471		)	—			(59,881		)
Changes in affiliate advances	184			1,330			(113		)	(1,401		)	—
Issuance of affiliate short-term borrowings	(4,300		)	—			—			4,300			—
Reduction of affiliates long-term debt	481			—			—			(481		)	—
Net cash used in investing activities	(3,635		)	(56,080		)	(2,584		)	2,418			(59,881		)
Financing Activities:
Short-term borrowings	—			60,000			—			—			60,000
Changes in affiliate advances	(17		)	772			(2,156		)	1,401			—
Proceeds from affiliate short-term borrowings	—			—			4,300			(4,300		)	—
Repayment of affiliates long-term borrowings	—			—			(481		)	481			—
Repayment of long-term debt	—			(171		)	(55		)	—			(226		)
Advances and contributions in aid of construction	—			5,979			65			—			6,044
Refunds of advances for construction	—			(1,789		)	(1		)	—			(1,790		)
Repurchase of common stock	(2,074		)	—			—			—			(2,074		)
Issuance of common stock	454			—			—			—			454
Dividends paid to non-affiliates	(9,493		)	—			—			—			(9,493		)
Dividends paid to affiliates	—			(9,185		)	(308		)	9,493			—
Net cash (used in) provided by financing activities	(11,130		)	55,606			1,364			7,075			52,915
Change in cash, cash equivalents, and restricted cash	(2,874		)	13,942			2,107			—			13,175
Cash, cash equivalents, and restricted cash at beginning of period	3,779			34,238			9,698			—			47,715
Cash, cash equivalents, and restricted cash at end of period	$	905		$	48,180		$	11,805		—			$	60,890

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2018

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating activities:
Net loss	$	(762	)	$	(937	)	$	(20	)	$	957		$	(762	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Equity loss of subsidiaries	942			—			—			(942		)	—
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			3,585			102			7			4,500
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 for 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