Immaterial Restatement of Prior Period Financial Statements

6 Months Ended

Jun. 30, 2019

Accounting Changes and Error Corrections [Abstract]

Immaterial Restatement of Prior Period Financial Statements

Subsequent to the issuance of the Company's Condensed Consolidated Financial Statements for the three and six months ended June 30, 2018, the Company identified an immaterial computational error related to the amount of authorized revenue recorded pursuant to the Company's pension and health care cost recovery balancing accounts. In accordance with the 2015 GRC, the Company adjusts the revenue and corresponding balancing accounts quarterly to reflect actual pension and health care costs, subject to certain limitations prescribed by the 2015 GRC. The error does not impact the billings to customers or the cash collected from customers in this GRC period, which ends on December 31, 2019. As provided for in the 2015 GRC, the amounts included in the balancing account will be recovered from or refunded to customers during the next GRC period.

The Company corrected the error in the accompanying Condensed Consolidated Financial Statements for the three and six months ended June 30, 2018. The Company believes the correction of the error is immaterial to the previously issued Condensed Consolidated Financial Statements.

The corrections to the Company's Condensed Consolidated Statements of Income for the three and six months ended June 30, 2018 were as follows:

Condensed Consolidated Statements of Income



	For the three months ended June 30, 2018
	As Previously Reported		Corrections		As Corrected
	(In thousands, except per share data)
Operating revenue	$	172,632	$	2,306	$	174,938
Operating expenses:
Income taxes	4,347		523		4,870
Total operating expenses	147,576		523		148,099
Net operating income	25,056		1,783		26,839
Net income	$	13,022	$	1,783	$	14,805
Earnings per share:
Basic	$	0.27	$	0.04	$	0.31
Diluted	$	0.27	$	0.04	$	0.31



	For the six months ended June 30, 2018
	As Previously Reported		Corrections		As Corrected
	(In thousands, except per share data)
Operating revenue	$	304,879	$	4,612	$	309,491
Operating expenses:
Income taxes	4,118		1,046		5,164
Total operating expenses	271,770		1,046		272,816
Net operating income	33,109		3,566		36,675
Net income	$	10,477	$	3,566	$	14,043
Earnings per share:
Basic	$	0.22	$	0.07	$	0.29
Diluted	$	0.22	$	0.07	$	0.29

The corrections to the Company's retained earnings and total stockholders’ equity as of January 1, 2018, March 31, 2018, and June 30, 2018 were as follows:



	January 1, 2018
	As Previously Reported		Corrections		As Corrected
	(In thousands)
Retained earnings	$	356,753	$	5,759	$	362,512
Total common stockholders' equity	693,462		5,759		699,221



	March 31, 2018
	As Previously Reported		Corrections		As Corrected
	(In thousands)
Retained earnings	$	345,205	$	7,542	$	352,747
Total common stockholders' equity	681,311		7,542		688,853



	June 30, 2018
	As Previously Reported		Corrections		As Corrected
	(In thousands)
Retained earnings	$	349,213	$	9,325	$	358,538
Total common stockholders' equity	685,932		9,325		695,257

The corrections to the Company's Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2018 were as follows:

Condensed Consolidated Statement of Cash Flows



	For the six months ended June 30, 2018
	As Previously Reported		Corrections			As Corrected
	(In thousands)
Operating activities:
Net income	$	10,477	$	3,566		$	14,043
Other changes in noncurrent assets and liabilities	13,705		(3,566		)	10,139
Net cash provided by operating activities	$	49,571	$	—		$	49,571