Immaterial Restatement of Prior Period Financial Statements

9 Months Ended

Sep. 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 nine months ended September 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 nine months ended September 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 nine months ended September 30, 2018 were as follows:

Condensed Consolidated Statements of Income



	For the three months ended September 30, 2018
	As Previously Reported		Corrections		As Corrected
	(In thousands, except per share data)
Operating revenue	$	218,983	$	2,305	$	221,288
Operating expenses:
Income taxes	11,262		524		11,786
Total operating expenses	173,435		524		173,959
Net operating income	45,548		1,781		47,329
Net income	$	34,392	$	1,781	$	36,173
Earnings per share:
Basic	$	0.72	$	0.03	$	0.75
Diluted	$	0.72	$	0.03	$	0.75



	For the nine months ended September 30, 2018
	As Previously Reported		Corrections		As Corrected
	(In thousands, except per share data)
Operating revenue	$	523,862	$	6,917	$	530,779
Operating expenses:
Income taxes	15,380		1,570		16,950
Total operating expenses	445,205		1,570		446,775
Net operating income	78,657		5,347		84,004
Net income	$	44,869	$	5,347	$	50,216
Earnings per share:
Basic	$	0.93	$	0.11	$	1.04
Diluted	$	0.93	$	0.11	$	1.04

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



	September 30, 2018
	As Previously Reported		Corrections		As Corrected
	(In thousands)
Retained earnings	$	374,593	$	11,106	$	385,699
Total common stockholders' equity	712,034		11,106		723,140

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

Condensed Consolidated Statement of Cash Flows



	For the nine months ended September 30, 2018
	As Previously Reported		Corrections			As Corrected
	(In thousands)
Operating activities:
Net income	$	44,869	$	5,347		$	50,216
Other changes in noncurrent assets and liabilities	5,991		(5,347		)	644
Net cash provided by operating activities	$	119,503	$	—		$	119,503