Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Consolidating Balance Sheet

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING BALANCE SHEET

As of March 31, 2020

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Utility plant:
Utility plant	$	1,318		$	3,395,699		$	226,598		$	(7,197	)	$	3,616,418
Less accumulated depreciation and amortization	(1,130		)	(1,103,286		)	(67,230		)	2,199			(1,169,447		)
Net utility plant	188			2,292,413			159,368			(4,998		)	2,446,971
Current assets:
Cash and cash equivalents	56,356			74,655			9,395			—			140,406
Receivables and unbilled revenue, net	—			98,794			4,482			—			103,276
Receivables from affiliates	23,212			1,704			24			(24,940		)	—
Other current assets	634			23,251			2,515			—			26,400
Total current assets	80,202			198,404			16,416			(24,940		)	270,082
Other assets:
Regulatory assets	—			438,075			4,744			—			442,819
Investments in affiliates	752,501			—			—			(752,501		)	—
Long-term affiliate notes receivable	29,579			—			—			(29,579		)	—
Other assets	458			75,228			5,508			(221		)	80,973
Total other assets	782,538			513,303			10,252			(782,301		)	523,792
TOTAL ASSETS	$	862,928		$	3,004,120		$	186,036		$	(812,239	)	$	3,240,845
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	755,140		$	676,674		$	81,031		$	(757,705	)	$	755,140
Affiliate long-term debt	—			—			29,579			(29,579		)	—
Long-term debt, net	—			786,040			427			—			786,467
Total capitalization	755,140			1,462,714			111,037			(787,284		)	1,541,607
Current liabilities:
Current maturities of long-term debt, net	—			21,743			121			—			21,864
Short-term borrowings	105,100			230,000			—			—			335,100
Payables to affiliates	797			25			24,118			(24,940		)	—
Accounts payable	—			94,979			4,040			—			99,019
Accrued expenses and other liabilities	334			53,721			3,089			—			57,144
Total current liabilities	106,231			400,468			31,368			(24,940		)	513,127
Unamortized investment tax credits	—			1,575			—			—			1,575
Deferred income taxes	1,557			213,617			3,292			(15		)	218,451
Pension and postretirement benefits other than pensions	—			260,337			—			—			260,337
Regulatory liabilities and other	—			261,072			7,845			—			268,917
Advances for construction	—			193,568			478			—			194,046
Contributions in aid of construction	—			210,769			32,016			—			242,785
TOTAL CAPITALIZATION AND LIABILITIES	$	862,928		$	3,004,120		$	186,036		$	(812,239	)	$	3,240,845

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2019

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Utility plant:
Utility plant	$	1,318		$	3,332,331		$	224,033		$	(7,197	)	$	3,550,485
Less accumulated depreciation and amortization	(1,107		)	(1,079,627		)	(65,561		)	2,180			(1,144,115		)
Net utility plant	211			2,252,704			158,472			(5,017		)	2,406,370
Current assets:
Cash and cash equivalents	3,096			29,098			10,459			—			42,653
Receivables and unbilled revenue, net	—			114,999			4,350			—			119,349
Receivables from affiliates	25,803			3,621			209			(29,633		)	—
Other current assets	90			20,615			2,005			—			22,710
Total current assets	28,989			168,333			17,023			(29,633		)	184,712
Other assets:
Regulatory assets	—			428,639			4,683			—			433,322
Investments in affiliates	777,170			—			—			(777,170		)	—
Long-term affiliate notes receivable	30,060			—			—			(30,060		)	—
Other assets	409			81,591			5,125			(221		)	86,904
Total other assets	807,639			510,230			9,808			(807,451		)	520,226
TOTAL ASSETS	$	836,839		$	2,931,267		$	185,303		$	(842,101	)	$	3,111,308
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	779,906		$	700,784		81,604			$	(782,388	)	$	779,906
Affiliate long-term debt	—			—			30,060			(30,060		)	—
Long-term debt, net	—			786,310			444			—			786,754
Total capitalization	779,906			1,487,094			112,108			(812,448		)	1,566,660
Current liabilities:
Current maturities of long-term debt, net	—			21,732			136			—			21,868
Short-term borrowings	55,100			120,000			—			—			175,100
Payables to affiliates	—			6,115			23,518			(29,633		)	—
Accounts payable	—			104,419			4,044			—			108,463
Accrued expenses and other liabilities	313			50,569			2,408			—			53,290
Total current liabilities	55,413			302,835			30,106			(29,633		)	358,721
Unamortized investment tax credits	—			1,575			—			—			1,575
Deferred income taxes	1,520			217,847			3,243			(20		)	222,590
Pension and postretirement benefits other than pensions	—			258,907			—			—			258,907
Regulatory and other liabilities	—			262,859			7,397			—			270,256
Advances for construction	—			190,568			494			—			191,062
Contributions in aid of construction	—			209,582			31,955			—			241,537
TOTAL CAPITALIZATION AND LIABILITIES	$	836,839		$	2,931,267		$	185,303		$	(842,101	)	$	3,111,308

Schedule of Condensed Consolidating Statement of Income

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF (LOSS) INCOME

For the three months ended March 31, 2020

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	115,392		$	10,171		$	—		$	125,563
Operating expenses:
Operations:
Water production costs	—			51,758			2,218			—			53,976
Administrative and general	—			26,892			2,788			—			29,680
Other operations	—			12,155			1,965			(146		)	13,974
Maintenance	—			6,649			424			—			7,073
Depreciation and amortization	24			22,957			1,531			(20		)	24,492
Income tax (benefit) expense	(118		)	(4,022		)	1			202			(3,937		)
Property and other taxes	—			6,426			802			—			7,228
Total operating (income) expenses	(94		)	122,815			9,729			36			132,486
Net operating income (loss)	94			(7,423		)	442			(36		)	(6,923		)
Other income and expenses:
Non-regulated revenue	555			3,591			381			(700		)	3,827
Non-regulated expenses	—			(8,255		)	(199		)	—			(8,454		)
Other components of net periodic benefit cost	—			(1,401		)	(29		)	—			(1,430		)
Allowance for equity funds used during construction	—			1,614			—			—			1,614
Income tax (expense) benefit on other income and expenses	(155		)	918			(46		)	196			913
Net other income (loss)	400			(3,533		)	107			(504		)	(3,530		)
Interest:
Interest expense	397			10,400			555			(554		)	10,798
Allowance for borrowed funds used during construction	—			(889		)	(55		)	—			(944		)
Net interest expense	397			9,511			500			(554		)	9,854
Equity loss of subsidiaries	(20,404		)	—			—			20,404			—
Net (loss) income	$	(20,307	)	$	(20,467	)	$	49		$	20,418		$	(20,307	)

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF (LOSS) 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	)

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, 2020

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating activities:
Net (loss) income	$	(20,307	)	$	(20,467	)	$	49		$	20,418		$	(20,307	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Equity loss of subsidiaries	20,404			—			—			(20,404		)	—
Dividends received from affiliates	10,315			—			—			(10,315		)	—
Depreciation and amortization	23			23,525			1,565			(20		)	25,093
Changes in value of life insurance contracts	—			4,717			—			—			4,717
Allowance for equity funds used during construction	—			(1,614		)	—			—			(1,614		)
Changes in operating assets and liabilities	(522		)	(230		)	182			—			(570		)
Other changes in noncurrent assets and liabilities	704			(4,021		)	59			6			(3,252		)
Net cash provided by operating activities	10,617			1,910			1,855			(10,315		)	4,067
Investing activities:
Utility plant expenditures	—			(62,671		)	(2,599		)	—			(65,270		)
Investment in affiliates	(6,049		)	—			—			6,049			—
Changes in affiliate advances	5,980			1,917			155			(8,052		)	—
Issuance of affiliate short-term borrowings	(3,500		)	—			—			3,500			—
Reduction of affiliates long-term debt	592			—			—			(592		)	—
Net cash used in investing activities	(2,977		)	(60,754		)	(2,444		)	905			(65,270		)
Financing Activities:
Short-term borrowings	50,000			120,000			—			—			170,000
Repayment of short-term borrowings	—			(10,000		)	—			—			(10,000		)
Investment from affiliates	—			6,049			—			(6,049		)	—
Changes in affiliate advances	797			(6,090		)	(2,759		)	8,052			—
Proceeds from affiliate short-term borrowings	—			—			3,500			(3,500		)	—
Repayment of affiliates long-term borrowings	—			—			(592		)	592			—
Repayment of long-term debt	—			(166		)	(31		)	—			(197		)
Advances and contributions in aid of construction	—			6,400			32			—			6,432
Refunds of advances for construction	—			(2,156		)	(1		)	—			(2,157		)
Repurchase of common stock	(1,373		)	—			—			—			(1,373		)
Issuance of common stock	6,511			—			—			—			6,511
Dividends paid to non-affiliates	(10,315		)	—			—			—			(10,315		)
Dividends paid to affiliates	—			(9,691		)	(624		)	10,315			—
Net cash provided by (used in) financing activities	45,620			104,346			(475		)	9,410			158,901
Change in cash, cash equivalents, and restricted cash	53,260			45,502			(1,064		)	—			97,698
Cash, cash equivalents, and restricted cash at beginning of period	3,096			29,679			10,523			—			43,298
Cash, cash equivalents, and restricted cash at end of period	$	56,356		$	75,181		$	9,459		—			$	140,996

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 (loss) income	$	(7,640	)	$	(7,941	)	$	192		$	7,749		$	(7,640	)
Adjustments to reconcile net (loss) income 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 for 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