Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2020

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Consolidating Balance Sheet

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING BALANCE SHEET

As of June 30, 2020

(In thousands)

	Parent Company		Cal Water		All Other Subsidiaries		Consolidating Adjustments		Consolidated
ASSETS
Utility plant:
Utility plant	$	1,318	$	3,478,007	$	280,115	$	(7,197)	$	3,752,243
Less accumulated depreciation and amortization	(1,154)		(1,127,493)		(87,999)		2,219		(1,214,427)
Net utility plant	164		2,350,514		192,116		(4,978)		2,537,816
Current assets:
Cash and cash equivalents	19,229		87,158		8,001		—		114,388
Receivables and unbilled revenue, net	—		116,442		6,587		—		123,029
Receivables from affiliates	23,391		831		143		(24,365)		—
Other current assets	453		26,448		2,571		—		29,472
Total current assets	43,073		230,879		17,302		(24,365)		266,889
Other assets:
Regulatory assets	—		436,197		4,789		—		440,986
Investments in affiliates	811,993		—		—		(811,993)		—
Long-term affiliate notes receivable	33,160		—		—		(33,160)		—
Other assets	422		79,519		34,521		(220)		114,242
Total other assets	845,575		515,716		39,310		(845,373)		555,228
TOTAL ASSETS	$	888,812	$	3,097,109	$	248,728	$	(874,716)	$	3,359,933
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	782,023	$	702,210	$	114,972	$	(817,182)	$	782,023
Affiliate long-term debt	—		—		33,160		(33,160)		—
Long-term debt, net	—		784,845		412		—		785,257
Total capitalization	782,023		1,487,055		148,544		(850,342)		1,567,280
Current liabilities:
Current maturities of long-term debt, net	—		21,753		119		—		21,872
Short-term borrowings	105,100		270,000		—		—		375,100
Payables to affiliates	—		409		23,956		(24,365)		—
Accounts payable	—		122,926		5,290		—		128,216
Accrued expenses and other liabilities	90		48,029		4,245		—		52,364
Total current liabilities	105,190		463,117		33,610		(24,365)		577,552
Deferred income taxes	1,599		215,464		6,901		(9)		223,955
Pension and postretirement benefits other than pensions	—		261,119		—		—		261,119
Regulatory liabilities and other	—		264,351		5,826		—		270,177
Advances for construction	—		194,542		514		—		195,056
Contributions in aid of construction	—		211,461		53,333		—		264,794
TOTAL CAPITALIZATION AND LIABILITIES	$	888,812	$	3,097,109	$	248,728	$	(874,716)	$	3,359,933

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
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	—		264,434		7,397		—		271,831
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 INCOME

For the three months ended June 30, 2020

(In thousands)

	Parent Company		Cal Water		All Other Subsidiaries		Consolidating Adjustments		Consolidated
Operating revenue	$	—	$	164,282	$	11,202	$	—	$	175,484
Operating expenses:
Operations:
Water production costs	—		68,898		2,244		—		71,142
Administrative and general	—		24,331		2,608		—		26,939
Other operations	—		23,960		2,084		(146)		25,898
Maintenance	—		6,459		263		—		6,722
Depreciation and amortization	23		22,945		1,593		(19)		24,542
Income tax (benefit) expense	(110)		289		245		198		622
Property and other taxes	—		6,244		882		—		7,126
Total operating (income) expenses	(87)		153,126		9,919		33		162,991
Net operating income	87		11,156		1,283		(33)		12,493
Other income and expenses:
Non-regulated revenue	544		3,923		431		(690)		4,208
Non-regulated expenses	—		(288)		(204)		—		(492)
Other components of net periodic benefit cost	—		(1,300)		(32)		—		(1,332)
Allowance for equity funds used during construction	—		1,705		—		—		1,705
Income tax expense on other income and expenses	(153)		(808)		(52)		193		(820)
Net other income	391		3,232		143		(497)		3,269
Interest:
Interest expense	371		11,240		547		(545)		11,613
Allowance for borrowed funds used during construction	—		(1,084)		(48)		—		(1,132)
Net interest expense	371		10,156		499		(545)		10,481
Equity earnings of subsidiaries	5,174		—		—		(5,174)		—
Net income	$	5,281	$	4,232	$	927	$	(5,159)	$	5,281

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the three months ended June 30, 2019

(In thousands)

	Parent Company		Cal Water		All Other Subsidiaries		Consolidating Adjustments		Consolidated
Operating revenue	$	—	$	167,450	$	11,581	$	—	$	179,031
Operating expenses:
Operations:
Water production costs	—		62,143		2,492		—		64,635
Administrative and general	23		23,207		2,204		—		25,434
Other operations	—		20,857		1,829		(144)		22,542
Maintenance	—		5,423		269		—		5,692
Depreciation and amortization	24		20,814		1,508		(20)		22,326
Income tax (benefit) expense	(144)		3,792		455		218		4,321
Property and other taxes	—		6,305		763		—		7,068
Total operating (income) expenses	(97)		142,541		9,520		54		152,018
Net operating income	97		24,909		2,061		(54)		27,013
Other income and expenses:
Non-regulated revenue	614		4,881		394		(759)		5,130
Non-regulated expenses	—		(3,665)		(235)		—		(3,900)
Other components of net periodic benefit cost	—		(1,164)		(28)		—		(1,192)
Allowance for equity funds used during construction	—		1,686		—		—		1,686
Income tax expense on other income and expenses	(171)		(486)		(43)		213		(487)
Net other income	443		1,252		88		(546)		1,237
Interest:
Interest expense	467		11,708		617		(614)		12,178
Allowance for borrowed funds used during construction	—		(862)		(62)		—		(924)
Net interest expense	467		10,846		555		(614)		11,254
Equity earnings of subsidiaries	16,923		—		—		(16,923)		—
Net income	$	16,996	$	15,315	$	1,594	$	(16,909)	$	16,996

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF (LOSS) INCOME

For the six months ended June 30, 2020

(In thousands)

	Parent Company		Cal Water		All Other Subsidiaries		Consolidating Adjustments		Consolidated
Operating revenue	$	—	$	279,674	$	21,373	$	—	$	301,047
Operating expenses:
Operations:
Water production costs	—		120,656		4,462		—		125,118
Administrative and general	—		51,223		5,396		—		56,619
Other operations	—		36,115		4,049		(292)		39,872
Maintenance	—		13,108		687		—		13,795
Depreciation and amortization	47		45,902		3,124		(39)		49,034
Income tax (benefit) expense	(228)		(3,733)		246		400		(3,315)
Property and other taxes	—		12,670		1,684		—		14,354
Total operating (income) expenses	(181)		275,941		19,648		69		295,477
Net operating income	181		3,733		1,725		(69)		5,570
Other income and expenses:
Non-regulated revenue	1,099		7,514		812		(1,390)		8,035
Non-regulated expenses	—		(8,543)		(403)		—		(8,946)
Other components of net periodic benefit cost	—		(2,701)		(61)		—		(2,762)
Allowance for equity funds used during construction	—		3,319		—		—		3,319
Income tax (expense) benefit on other income and expenses	(308)		110		(98)		389		93
Net other income (loss)	791		(301)		250		(1,001)		(261)
Interest:
Interest expense	768		21,640		1,102		(1,099)		22,411
Allowance for borrowed funds used during construction	—		(1,973)		(103)		—		(2,076)
Net interest expense	768		19,667		999		(1,099)		20,335
Equity loss of subsidiaries	(15,230)		—		—		15,230		—
Net (loss) income	$	(15,026)	$	(16,235)	$	976	$	15,259	$	(15,026)

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the six months ended June 30, 2019

(In thousands)

	Parent Company		Cal Water		All Other Subsidiaries		Consolidating Adjustments		Consolidated
Operating revenue	$	—	$	283,524	$	21,618	$	—	$	305,142
Operating expenses:
Operations:
Water production costs	—		105,569		4,658		—		110,227
Administrative and general	23		49,410		5,098		—		54,531
Other operations	—		36,979		3,674		(290)		40,363
Maintenance	—		11,646		501		—		12,147
Depreciation and amortization	47		41,701		2,987		(41)		44,694
Income tax (benefit) expense	(279)		687		486		436		1,330
Property and other taxes	—		12,811		1,550		—		14,361
Total operating (income) expenses	(209)		258,803		18,954		105		277,653
Net operating income	209		24,721		2,664		(105)		27,489
Other income and expenses:
Non-regulated revenue	1,227		9,509		813		(1,518)		10,031
Non-regulated expenses	—		(5,703)		(416)		—		(6,119)
Other components of net periodic benefit cost	—		(2,393)		(58)		—		(2,451)
Allowance for equity funds used during construction	—		3,219		—		—		3,219
Income tax expense on other income and expenses	(343)		(1,296)		(101)		425		(1,315)
Net other income	884		3,336		238		(1,093)		3,365
Interest:
Interest expense	926		22,321		1,233		(1,227)		23,253
Allowance for borrowed funds used during construction	—		(1,638)		(117)		—		(1,755)
Net interest expense	926		20,683		1,116		(1,227)		21,498
Equity earnings of subsidiaries	9,189		—		—		(9,189)		—
Net income	$	9,356	$	7,374	$	1,786	$	(9,160)	$	9,356

Schedule of Condensed Consolidating Statement of Cash Flows

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended June 30, 2020

(In thousands)

	Parent Company		Cal Water		All Other Subsidiaries		Consolidating Adjustments		Consolidated
Operating activities:
Net (loss) income	$	(15,026)	$	(16,235)	$	976	$	15,259	$	(15,026)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Equity loss of subsidiaries	15,230		—		—		(15,230)		—
Dividends received from affiliates	20,671		—		—		(20,671)		—
Depreciation and amortization	47		47,053		3,190		(39)		50,251
Changes in value of life insurance contracts	—		872		—		—		872
Allowance for equity funds used during construction	—		(3,319)		—		—		(3,319)
Changes in operating assets and liabilities	(593)		(10,083)		137		—		(10,539)
Other changes in noncurrent assets and liabilities	1,361		(4,089)		483		10		(2,235)
Net cash provided by operating activities	21,690		14,199		4,786		(20,671)		20,004
Investing activities:
Utility plant expenditures	—		(127,959)		(5,578)		—		(133,537)
Business acquisition, net of cash acquired	—		—		(37,655)		—		(37,655)
Investment in affiliates	(70,724)		—		—		70,724		—
Changes in affiliate advances	5,783		2,790		4		(8,577)		—
Issuance of affiliate short-term borrowings	(3,500)		—		—		3,500		—
Issuance of affiliate long-term borrowings	(4,076)		—		—		4,076		—
Reduction of affiliates long-term debt	1,104		—		—		(1,104)		—
Net cash used in investing activities	(71,413)		(125,169)		(43,229)		68,619		(171,192)
Financing Activities:
Short-term borrowings	50,000		220,000		—		—		270,000
Repayment of short-term borrowings	—		(70,000)		—		—		(70,000)
Investment from affiliates	—		37,119		33,605		(70,724)		—
Changes in affiliate advances	—		(5,706)		(2,871)		8,577		—
Proceeds from affiliate short-term borrowings	—		—		3,500		(3,500)		—
Proceeds from affiliate long-term borrowings	—		—		4,076		(4,076)		—
Repayment of affiliates long-term borrowings	—		—		(1,104)		1,104		—
Repayment of long-term debt	—		(1,244)		(49)		—		(1,293)
Advances and contributions in aid of construction	—		12,493		76		—		12,569
Refunds of advances for construction	—		(4,340)		(1)		—		(4,341)
Repurchase of common stock	(1,479)		—		—		—		(1,479)
Issuance of common stock	38,006		—		—		—		38,006
Dividends paid to non-affiliates	(20,671)		—		—		—		(20,671)
Dividends paid to affiliates	—		(19,450)		(1,221)		20,671		—
Net cash provided by financing activities	65,856		168,872		36,011		(47,948)		222,791
Change in cash, cash equivalents, and restricted cash	16,133		57,902		(2,432)		—		71,603
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	$	19,229	$	87,581	$	8,091	—		$	114,901

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended June 30, 2019

(In thousands)

	Parent Company		Cal Water		All Other Subsidiaries		Consolidating Adjustments		Consolidated
Operating activities:
Net income	$	9,356	$	7,374	$	1,786	$	(9,160)	$	9,356
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	(9,189)		—		—		9,189		—
Dividends received from affiliates	19,000		—		—		(19,000)		—
Depreciation and amortization	47		42,717		3,021		(41)		45,744
Changes in value of life insurance contracts	—		(3,147)		—		—		(3,147)
Allowance for equity funds used during construction	—		(3,219)		—		—		(3,219)
Changes in operating assets and liabilities	63		(16,581)		(319)		—		(16,837)
Other changes in noncurrent assets and liabilities	3,763		6,289		1,430		12		11,494
Net cash provided by operating activities	23,040		33,433		5,918		(19,000)		43,391
Investing activities:
Utility plant expenditures	—		(116,384)		(5,552)		—		(121,936)
Changes in affiliate advances	(1,453)		2,856		(165)		(1,238)		—
Issuance of affiliate short-term borrowings	(4,300)		—		—		4,300		—
Reduction of affiliates long-term debt	848		—		—		(848)		—
Net cash used in investing activities	(4,905)		(113,528)		(5,717)		2,214		(121,936)
Financing Activities:
Short-term borrowings	—		190,000		—		—		190,000
Repayment of short-term borrowings	—		(90,000)		—		—		(90,000)
Changes in affiliate advances	(17)		2,430		(3,651)		1,238		—
Proceeds from affiliate short-term borrowings	—		—		4,300		(4,300)		—
Repayment of affiliates long-term borrowings	—		—		(848)		848		—
Issuance of long-term debt, net of expenses	—		398,442		—		—		398,442
Repayment of long-term debt	—		(401,256)		(102)		—		(401,358)
Advances and contributions in aid for construction	—		12,679		76		—		12,755
Refunds of advances for construction	—		(3,554)		(1)		—		(3,555)
Repurchase of common stock	(2,203)		—		—		—		(2,203)
Issuance of common stock	829		—		—		—		829
Dividends paid to non-affiliates	(19,000)		—		—		—		(19,000)
Dividends paid to affiliates	—		(18,348)		(652)		19,000		—
Net cash (used in) provided by financing activities	(20,391)		90,393		(878)		16,786		85,910
Change in cash, cash equivalents, and restricted cash	(2,256)		10,298		(677)		—		7,365
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	$	1,523	$	44,536	$	9,021	—		$	55,080