Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2020

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Consolidating Balance Sheet

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING BALANCE SHEET

As of September 30, 2020

(In thousands)

	Parent Company		Cal Water		All Other Subsidiaries		Consolidating Adjustments		Consolidated
ASSETS
Utility plant:
Utility plant	$	1,318	$	3,559,329	$	281,744	$	(7,197)	$	3,835,194
Less accumulated depreciation and amortization	(1,177)		(1,151,266)		(88,676)		2,239		(1,238,880)
Net utility plant	141		2,408,063		193,068		(4,958)		2,596,314
Current assets:
Cash and cash equivalents	16,679		85,877		10,756		—		113,312
Receivables and unbilled revenue, net	—		160,479		8,636		—		169,115
Receivables from affiliates	26,962		942		261		(28,165)		—
Other current assets	272		20,933		2,132		—		23,337
Total current assets	43,913		268,231		21,785		(28,165)		305,764
Other assets:
Regulatory assets	—		479,613		4,822		—		484,435
Investments in affiliates	917,901		—		—		(917,901)		—
Long-term affiliate notes receivable	32,659		—		—		(32,659)		—
Other assets	2,349		84,154		33,636		(218)		119,921
Total other assets	952,909		563,767		38,458		(950,778)		604,356
TOTAL ASSETS	$	996,963	$	3,240,061	$	253,311	$	(983,901)	$	3,506,434
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	890,192	$	805,444	$	117,633	$	(923,077)	$	890,192
Affiliate long-term debt	—		—		32,659		(32,659)		—
Long-term debt, net	—		784,715		340		—		785,055
Total capitalization	890,192		1,590,159		150,632		(955,736)		1,675,247
Current liabilities:
Current maturities of long-term debt, net	—		21,763		120		—		21,883
Short-term borrowings	105,100		270,000		—		—		375,100
Payables to affiliates	—		2,940		25,225		(28,165)		—
Accounts payable	—		123,129		4,029		—		127,158
Accrued expenses and other liabilities	31		73,913		5,738		—		79,682
Total current liabilities	105,131		491,745		35,112		(28,165)		603,823
Deferred income taxes	1,640		235,791		8,025		—		245,456
Pension and postretirement benefits other than pensions	—		261,081		—		—		261,081
Regulatory liabilities and other	—		251,230		5,824		—		257,054
Advances for construction	—		196,324		529		—		196,853
Contributions in aid of construction	—		213,731		53,189		—		266,920
TOTAL CAPITALIZATION AND LIABILITIES	$	996,963	$	3,240,061	$	253,311	$	(983,901)	$	3,506,434

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 September 30, 2020

(In thousands)

	Parent Company		Cal Water		All Other Subsidiaries		Consolidating Adjustments		Consolidated
Operating revenue	$	—	$	287,820	$	16,288	$	—	$	304,108
Operating expenses:
Operations:
Water production costs	—		82,829		2,515		—		85,344
Administrative and general	—		25,802		3,406		—		29,208
Other operations	—		27,312		2,579		(145)		29,746
Maintenance	—		6,872		257		—		7,129
Depreciation and amortization	23		22,984		1,712		(20)		24,699
Income tax (benefit) expense	(113)		12,787		930		200		13,804
Property and other taxes	—		6,948		1,168		—		8,116
Total operating (income) expenses	(90)		185,534		12,567		35		198,046
Net operating income	90		102,286		3,721		(35)		106,062
Other income and expenses:
Non-regulated revenue	549		3,588		492		(695)		3,934
Non-regulated expenses	—		(2,321)		(544)		—		(2,865)
Other components of net periodic benefit cost	—		(1,016)		8		—		(1,008)
Allowance for equity funds used during construction	—		973		—		—		973
Income tax (expense) benefit on other income and expenses	(152)		(289)		2		194		(245)
Net other income (loss)	397		935		(42)		(501)		789
Interest:
Interest expense	393		10,762		556		(549)		11,162
Allowance for borrowed funds used during construction	—		(631)		(40)		—		(671)
Net interest expense	393		10,131		516		(549)		10,491
Equity earnings of subsidiaries	96,266		—		—		(96,266)		—
Net income	$	96,360	$	93,090	$	3,163	$	(96,253)	$	96,360

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the three months ended September 30, 2019

(In thousands)

	Parent Company		Cal Water		All Other Subsidiaries		Consolidating Adjustments		Consolidated
Operating revenue	$	—	$	219,261	$	13,276	$	—	$	232,537
Operating expenses:
Operations:
Water production costs	—		78,048		2,520		—		80,568
Administrative and general	—		24,498		2,281		—		26,779
Other operations	—		22,872		1,825		(147)		24,550
Maintenance	—		6,823		242		—		7,065
Depreciation and amortization	23		20,770		1,501		(21)		22,273
Income tax (benefit) expense	(132)		11,332		779		215		12,194
Property and other taxes	—		6,620		921		—		7,541
Total operating (income) expenses	(109)		170,963		10,069		47		180,970
Net operating income	109		48,298		3,207		(47)		51,567
Other income and expenses:
Non-regulated revenue	599		3,865		399		(745)		4,118
Non-regulated expenses	—		(3,907)		(444)		—		(4,351)
Other components of net periodic benefit cost	—		(1,784)		(73)		—		(1,857)
Allowance for equity funds used during construction	—		1,868		—		—		1,868
Income tax (expense) benefit on other income and expenses	(168)		268		22		208		330
Net other income (loss)	431		310		(96)		(537)		108
Interest:
Interest expense	450		9,820		608		(599)		10,279
Allowance for borrowed funds used during construction	—		(954)		(74)		—		(1,028)
Net interest expense	450		8,866		534		(599)		9,251
Equity earnings of subsidiaries	42,334		—		—		(42,334)		—
Net income	$	42,424	$	39,742	$	2,577	$	(42,319)	$	42,424

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the nine months ended September 30, 2020

(In thousands)

	Parent Company		Cal Water		All Other Subsidiaries		Consolidating Adjustments		Consolidated
Operating revenue	$	—	$	567,494	$	37,661	$	—	$	605,155
Operating expenses:
Operations:
Water production costs	—		203,485		6,977		—		210,462
Administrative and general	—		77,025		8,802		—		85,827
Other operations	—		63,427		6,628		(437)		69,618
Maintenance	—		19,980		944		—		20,924
Depreciation and amortization	70		68,886		4,836		(59)		73,733
Income tax (benefit) expense	(341)		9,054		1,176		600		10,489
Property and other taxes	—		19,618		2,852		—		22,470
Total operating (income) expenses	(271)		461,475		32,215		104		493,523
Net operating income	271		106,019		5,446		(104)		111,632
Other income and expenses:
Non-regulated revenue	1,648		11,102		1,304		(2,085)		11,969
Non-regulated expenses	—		(10,864)		(947)		—		(11,811)
Other components of net periodic benefit cost	—		(3,717)		(53)		—		(3,770)
Allowance for equity funds used during construction	—		4,292		—		—		4,292
Income tax expense on other income and expenses	(460)		(179)		(96)		583		(152)
Net other income	1,188		634		208		(1,502)		528
Interest:
Interest expense	1,161		32,402		1,658		(1,648)		33,573
Allowance for borrowed funds used during construction	—		(2,604)		(143)		—		(2,747)
Net interest expense	1,161		29,798		1,515		(1,648)		30,826
Equity earnings of subsidiaries	81,036		—		—		(81,036)		—
Net income	$	81,334	$	76,855	$	4,139	$	(80,994)	$	81,334

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the nine months ended September 30, 2019

(In thousands)

	Parent Company		Cal Water		All Other Subsidiaries		Consolidating Adjustments		Consolidated
Operating revenue	$	—	$	502,785	$	34,894	$	—	$	537,679
Operating expenses:
Operations:
Water production costs	—		183,617		7,178		—		190,795
Administrative and general	23		73,908		7,379		—		81,310
Other operations	—		59,851		5,499		(437)		64,913
Maintenance	—		18,469		743		—		19,212
Depreciation and amortization	70		62,471		4,488		(62)		66,967
Income tax (benefit) expense	(411)		12,019		1,265		651		13,524
Property and other taxes	—		19,431		2,471		—		21,902
Total operating (income) expenses	(318)		429,766		29,023		152		458,623
Net operating income	318		73,019		5,871		(152)		79,056
Other income and expenses:
Non-regulated revenue	1,826		13,374		1,212		(2,263)		14,149
Non-regulated expenses	—		(9,610)		(860)		—		(10,470)
Other components of net periodic benefit cost	—		(4,177)		(131)		—		(4,308)
Allowance for equity funds used during construction	—		5,087		—		—		5,087
Income tax expense on other income and expenses	(511)		(1,028)		(79)		633		(985)
Net other income	1,315		3,646		142		(1,630)		3,473
Interest:
Interest expense	1,376		32,141		1,841		(1,826)		33,532
Allowance for borrowed funds used during construction	—		(2,592)		(191)		—		(2,783)
Net interest expense	1,376		29,549		1,650		(1,826)		30,749
Equity earnings of subsidiaries	51,523		—		—		(51,523)		—
Net income	$	51,780	$	47,116	$	4,363	$	(51,479)	$	51,780

Schedule of Condensed Consolidating Statement of Cash Flows

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2020

(In thousands)

	Parent Company		Cal Water		All Other Subsidiaries		Consolidating Adjustments		Consolidated
Operating activities:
Net income	$	81,334	$	76,855	$	4,139	$	(80,994)	$	81,334
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	(81,036)		—		—		81,036		—
Dividends received from affiliates	31,177		—		—		(31,177)		—
Depreciation and amortization	70		70,604		4,935		(59)		75,550
Changes in value of life insurance contracts	—		(621)		—		—		(621)
Allowance for equity funds used during construction	—		(4,292)		—		—		(4,292)
Changes in operating assets and liabilities	(463)		(17,633)		(311)		—		(18,407)
Other changes in noncurrent assets and liabilities	3,262		(42,184)		2,005		17		(36,900)
Net cash provided by operating activities	34,344		82,729		10,768		(31,177)		96,664
Investing activities:
Utility plant expenditures	—		(212,288)		(8,973)		—		(221,261)
Business acquisition, net of cash acquired	(1,950)		—		(37,594)		—		(39,544)
Investment in affiliates	(90,871)		—		—		90,871		—
Changes in affiliate advances	2,238		2,679		(145)		(4,772)		—
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	1,580		—		—		(1,580)		—
Purchase of life insurance contracts	—		(2,335)		—		—		(2,335)
Net cash used in investing activities	(96,579)		(211,944)		(46,712)		92,095		(263,140)
Financing Activities:
Short-term borrowings	50,000		220,000		—		—		270,000
Repayment of short-term borrowings	—		(70,000)		—		—		(70,000)
Investment from affiliates	—		57,266		33,605		(90,871)		—
Changes in affiliate advances	—		(3,175)		(1,597)		4,772		—
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	—		—		(1,580)		1,580		—
Repayment of long-term debt	—		(1,415)		(120)		—		(1,535)
Advances and contributions in aid of construction	—		19,735		127		—		19,862
Refunds of advances for construction	—		(7,015)		(2)		—		(7,017)
Repurchase of common stock	(1,578)		—		—		—		(1,578)
Issuance of common stock	58,573		—		—		—		58,573
Dividends paid to non-affiliates	(31,177)		—		—		—		(31,177)
Dividends paid to affiliates	—		(29,461)		(1,716)		31,177		—
Net cash provided by financing activities	75,818		185,935		36,293		(60,918)		237,128
Change in cash, cash equivalents, and restricted cash	13,583		56,720		349		—		70,652
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	$	16,679	$	86,399	$	10,872	—		$	113,950

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2019

(In thousands)

	Parent Company		Cal Water		All Other Subsidiaries		Consolidating Adjustments		Consolidated
Operating activities:
Net income	$	51,780	$	47,116	$	4,363	$	(51,479)	$	51,780
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	(51,523)		—		—		51,523		—
Dividends received from affiliates	28,507		—		—		(28,507)		—
Depreciation and amortization	70		63,975		4,539		(62)		68,522
Changes in value of life insurance contracts	—		(3,433)		—		—		(3,433)
Allowance for equity funds used during construction	—		(5,087)		—		—		(5,087)
Changes in operating assets and liabilities	194		(6,744)		1,509		—		(5,041)
Other changes in noncurrent assets and liabilities	5,239		14,560		1,785		18		21,602
Net cash provided by operating activities	34,267		110,387		12,196		(28,507)		128,343
Investing activities:
Utility plant expenditures	—		(185,883)		(9,059)		—		(194,942)
Changes in affiliate advances	(3,199)		3,534		(320)		(15)		—
Issuance of affiliate short-term borrowings	(4,300)		—		—		4,300		—
Reduction of affiliates long-term debt	1,462		—		—		(1,462)		—
Purchase of life insurance contracts	—		(2,216)		—		—		(2,216)
Net cash used in investing activities	(6,037)		(184,565)		(9,379)		2,823		(197,158)
Financing Activities:
Short-term borrowings	—		210,000		—		—		210,000
Repayment of short-term borrowings	—		(120,000)		—		—		(120,000)
Changes in affiliate advances	(17)		4,419		(4,417)		15		—
Proceeds from affiliate short-term borrowings	—		—		4,300		(4,300)		—
Repayment of affiliates long-term borrowings	—		—		(1,462)		1,462		—
Issuance of long-term debt, net of expenses	—		398,431		—		—		398,431
Repayment of long-term debt	—		(401,417)		(213)		—		(401,630)
Advances and contributions in aid for construction	—		21,176		90		—		21,266
Refunds of advances for construction	—		(5,560)		—		—		(5,560)
Repurchase of common stock	(2,355)		—		—		—		(2,355)
Issuance of common stock	1,278		—		—		—		1,278
Dividends paid to non-affiliates	(28,507)		—		—		—		(28,507)
Dividends paid to affiliates	—		(27,419)		(1,088)		28,507		—
Net cash (used in) provided by financing activities	(29,601)		79,630		(2,790)		25,684		72,923
Change in cash, cash equivalents, and restricted cash	(1,371)		5,452		27		—		4,108
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	$	2,408	$	39,690	$	9,725	—		$	51,823