Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2013

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Balance Sheet

As of June 30, 2013

(In thousands)

	ParentCompany			Cal Water			All OtherSubsidiaries			ConsolidatingAdjustments			Consolidated
ASSETS
Utility plant:
Utility plant	$	1,079		$	1,984,718		$	182,106		$	(7,197	)	$	2,160,706
Less accumulated depreciation and amortization	(136		)	(636,860		)	(35,015		)	1,559			(670,452		)
Net utility plant	943			1,347,858			147,091			(5,638		)	1,490,254
Current assets:
Cash and cash equivalents	2,871			34,054			1,743			—			38,668
Receivables and unbilled revenue, net	76			102,379			3,683			—			106,138
Receivables from affiliates	26,696			3,504			264			(30,464		)	—
Other current assets	146			18,125			999			—			19,270
Total current assets	29,789			158,062			6,689			(30,464		)	164,076
Other assets:
Regulatory assets	—			351,299			2,611			—			353,910
Investments in affiliates	524,923			—			—			(524,923		)	—
Long-term affiliate notes receivable	30,578			—			—			(30,578		)	—
Other assets	1,309			42,047			7,215			(204		)	50,367
Total other assets	556,810			393,346			9,826			(555,705		)	404,277
	$	587,542		$	1,899,266		$	163,606		$	(591,807	)	$	2,058,607
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	578,480		$	478,802		$	51,573		$	(530,375	)	$	578,480
Affiliate long-term debt	—			—			30,578			(30,578		)	—
Long-term debt, less current maturities	—			429,188			1,517			—			430,705
Total capitalization	578,480			907,990			83,668			(560,953		)	1,009,185
Current liabilities:
Current maturities of long-term debt	—			46,120			1,920			—			48,040
Short-term borrowings	8,815			20,000			—			—			28,815
Payables to affiliates	820			260			29,384			(30,464		)	—
Accounts payable	—			53,503			3,655			—			57,158
Accrued expenses and other liabilities	6			58,897			3,294			—			62,197
Total current liabilities	9,641			178,780			38,253			(30,464		)	196,210
Unamortized investment tax credits	—			2,180			—			—			2,180
Deferred income taxes, net	(579		)	164,246			4,334			(390		)	167,611
Pension and postretirement benefits other than pensions	—			248,003			—			—			248,003
Regulatory and other liabilities	—			79,847			8,731			—			88,578
Advances for construction	—			185,465			737			—			186,202
Contributions in aid of construction	—			132,755			27,883			—			160,638
	$	587,542		$	1,899,266		$	163,606		$	(591,807	)	$	2,058,607

As of December 31, 2012

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Utility plant:
Utility plant	$	606		$	1,927,190		$	175,764		$	(7,197	)	$	2,096,363
Less accumulated depreciation and amortization	(108		)	(607,992		)	(32,710		)	1,503			(639,307		)
Net utility plant	498			1,319,198			143,054			(5,694		)	1,457,056
Current assets:
Cash and cash equivalents	1,470			34,609			2,711			—			38,790
Receivables, net	—			87,482			3,833			—			91,315
Receivables from affiliates	19,367			3,195			1,152			(23,714		)	—
Other current assets	—			15,535			924			—			16,459
Total current assets	20,837			140,821			8,620			(23,714		)	146,564
Other assets:
Regulatory assets	—			341,877			2,542			—			344,419
Investments in affiliates	492,188			—			—			(492,188		)	—
Long-term affiliate notes receivable	31,218			7,781			—			(38,999		)	—
Other assets	1,023			40,005			7,062			(205		)	47,885
Total other assets	524,429			389,663			9,604			(531,392		)	392,304
	$	545,764		$	1,849,682		$	161,278		$	(560,800	)	$	1,995,924
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	473,712		$	442,923		$	54,774		$	(497,697	)	$	473,712
Affiliate long-term debt	7,781			—			31,218			(38,999		)	—
Long-term debt, less current maturities	—			431,433			3,034			—			434,467
Total capitalization	481,493			874,356			89,026			(536,696		)	908,179
Current liabilities:
Current maturities of long-term debt	—			46,104			679			—			46,783
Short-term borrowings	64,475			25,000			—			—			89,475
Payables to affiliates	77			1,152			22,485			(23,714		)	—
Accounts payable	—			41,352			5,847			—			47,199
Accrued expenses and other liabilities	298			58,293			1,019			—			59,610
Total current liabilities	64,850			171,901			30,030			(23,714		)	243,067
Unamortized investment tax credits	—			2,180			—			—			2,180
Deferred income taxes, net	(579		)	155,481			4,334			(390		)	158,846
Pension and postretirement benefits other than pensions	—			244,901			—			—			244,901
Regulatory and other liabilities	—			83,942			8,651			—			92,593
Advances for construction	—			186,753			831			—			187,584
Contributions in aid of construction	—			130,168			28,406			—			158,574
	$	545,764		$	1,849,682		$	161,278		$	(560,800	)	$	1,995,924

Schedule of Condensed Consolidating Statement of Income

For the three months ended June 30, 2013

(In thousands)

	ParentCompany			Cal Water			All OtherSubsidiaries			ConsolidatingAdjustments			Consolidated
Operating revenue	$	—		$	146,730		$	7,825		$	—		$	154,555
Operating expenses:
Operations:
Water production costs	—			57,102			2,543			—			59,645
Administrative and general	—			20,460			2,695			—			23,155
Other operations	—			15,418			1,737			(125		)	17,030
Maintenance	—			4,029			159			—			4,188
Depreciation and amortization	28			13,697			794			(28		)	14,491
Income tax (benefit) expense	(93		)	9,813			(542		)	370			9,548
Property and other taxes	—			5,015			700			—			5,715
Total operating (income) expenses	(65		)	125,534			8,086			217			133,772
Net operating income (loss)	65			21,196			(261		)	(217		)	20,783
Other Income and Expenses:
Non-regulated revenue	597			3,005			408			(795		)	3,215
Non-regulated expense, net	—			(2,873		)	(367		)	—			(3,240		)
Income tax (expense) benefit on other income and expense	(244		)	(54		)	(45		)	359			16
Net other income (expense)	353			78			(4		)	(436		)	(9		)
Interest:
Interest expense	199			7,631			642			(669		)	7,803
Less: capitalized interest	—			(405		)	(134		)	—			(539		)
Net interest expense	199			7,226			508			(669		)	7,264
Equity earnings of subsidiaries	13,291			—			—			(13,291		)	—
Net income (loss)	$	13,510		$	14,048		$	(773	)	$	(13,275	)	$	13,510

For the six months ended June 30, 2013

(In thousands)

	ParentCompany			Cal Water			All OtherSubsidiaries			ConsolidatingAdjustments			Consolidated
Operating revenue	$	—		$	251,161		$	14,838		$	—		$	265,999
Operating expenses:
Operations:
Water production costs	—			96,543			4,799			—			101,342
Administrative and general	—			43,069			5,367			—			48,436
Other operations	—			29,607			3,320			(252		)	32,675
Maintenance	—			7,994			327			—			8,321
Depreciation and amortization	28			27,454			1,694			(56		)	29,120
Income tax (benefit) expense	(229		)	9,086			(1,171		)	716			8,402
Property and other taxes	—			9,869			1,281			—			11,150
Total operating (income) expenses	(201		)	223,622			15,617			408			239,446
Net operating income (loss)	201			27,539			(779		)	(408		)	26,553
Other Income and Expenses:
Non-regulated revenue	1,167			6,187			940			(1,557		)	6,737
Non-regulated expense, net	—			(4,793		)	(864		)	—			(5,657		)
Income tax (expense) on other income and expense	(476		)	(568		)	(84		)	693			(435		)
Net other income (expense)	691			826			(8		)	(864		)	645
Interest:
Interest expense	533			15,358			1,254			(1,305		)	15,840
Less: capitalized interest	—			(784		)	(295		)	—			(1,079		)
Net interest expense	533			14,574			959			(1,305		)	14,761
Equity earnings of subsidiaries	12,078			—			—			(12,078		)	—
Net income (loss)	$	12,437		$	13,791		$	(1,746	)	$	(12,045	)	$	12,437

For the three months ended June 30, 2012

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	135,291		$	8,261		$	—		$	143,552
Operating expenses:
Operations:
Water production costs	—			50,207			2,471			—			52,678
Administrative and general	(36		)	19,752			2,451			—			22,167
Other operations	—			16,035			1,821			(127		)	17,729
Maintenance	—			4,452			153			—			4,605
Depreciation and amortization	5			13,042			694			(29		)	13,712
Income tax (benefit) expense	(126		)	9,016			(155		)	327			9,062
Property and other taxes	—			3,208			769			—			3,977
Total operating expenses	(157		)	115,712			8,204			171			123,930
Net operating income	157			19,579			57			(171		)	19,622
Other Income and Expenses:
Non-regulated revenue	484			3,671			615			(719		)	4,051
Non-regulated expense, net	—			(3,157		)	(538		)	—			(3,695		)
Income tax (expense) on other income and expense	(197		)	(210		)	(45		)	314			(138		)
Net other income	287			304			32			(405		)	218
Interest:
Interest expense	340			7,540			534			(593		)	7,821
Less: capitalized interest	—			(682		)	(264		)	—			(946		)
Net interest expense	340			6,858			270			(593		)	6,875
Equity earnings of subsidiaries	12,861			—			—			(12,861		)	—
Net income (loss)	$	12,965		$	13,025		$	(181	)	$	(12,844	)	$	12,965

For the six months ended June 30, 2012

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	245,116		$	15,185		$	—		$	260,301
Operating expenses:
Operations:
Water production costs	—			86,749			4,881			—			91,630
Administrative and general	—			40,404			4,781			—			45,185
Other operations	—			38,407			3,401			(253		)	41,555
Maintenance	—			10,009			356			—			10,365
Depreciation and amortization	—			26,342			1,380			(59		)	27,663
Income tax (benefit) expense	(266		)	9,263			(570		)	663			9,090
Property and other taxes	—			7,267			1,317			—			8,584
Total operating expenses	(266		)	218,441			15,546			351			234,072
Net operating income (loss)	266			26,675			(361		)	(351		)	26,229
Other Income and Expenses:
Non-regulated revenue	955			7,495			1,188			(1,451		)	8,187
Non-regulated expense, net	—			(4,855		)	(939		)	—			(5,794		)
Income tax (expense) on other income and expense	(389		)	(1,076		)	(134		)	638			(961		)
Net other income	566			1,564			115			(813		)	1,432
Interest:
Interest expense	654			14,946			1,059			(1,199		)	15,460
Less: capitalized interest	—			(1,280		)	(569		)	—			(1,849		)
Net interest expense	654			13,666			490			(1,199		)	13,611
Equity earnings of subsidiaries	13,872			—			—			(13,872		)	—
Net income (loss)	$	14,050		$	14,573		$	(736	)	$	(13,837	)	$	14,050

Schedule of Condensed Consolidating Statement of Cash Flows

For the six months ended June 30, 2013

(In thousands)

	ParentCompany			Cal Water			All OtherSubsidiaries			ConsolidatingAdjustments			Consolidated
Operating activities:
Net income (loss)	$	12,437		$	13,791		$	(1,746	)	$	(12,045	)	$	12,437
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity earnings of subsidiaries	(12,078		)	—			—			12,078			—
Dividends received from affiliates	14,343			—			—			(14,343		)	—
Depreciation and amortization	—			28,350			1,794			(56		)	30,088
Change in value of life insurance contracts	—			(504		)	—			—			(504		)
Other changes in noncurrent assets and liabilities	108			883			336			23			1,350
Changes in operating assets and liabilities	(514		)	(7,765		)	1,684			—			(6,595		)
Net cash provided by (used in) operating activities	14,296			34,755			2,068			(14,343		)	36,776
Investing activities:
Utility plant expenditures	—			(57,764		)	(8,426		)	—			(66,190		)
Investment in affiliates	(35,000		)	—			—			35,000			—
Net changes in affiliate advances	(7,294		)	(324		)	742			6,876			—
Repayment of affiliates long-term debt	605			7,796			—			(8,401		)	—
Purchase of life insurance	—			(1,608		)	—			—			(1,608		)
Restricted cash and other changes, net	—			1,079			—			—			1,079
Net cash provided by (used in) investing activities	(41,689		)	(50,821		)	(7,684		)	33,475			(66,719		)
Financing Activities:
Short-term borrowings	12,615			20,000			—			—			32,615
Repayment of short-term borrowings	(68,275		)	(25,000		)	—			—			(93,275		)
Proceeds from long-term debt	—			—			48			—			48
Repayment of long-term debt	—			(2,230		)	(323		)	—			(2,553		)
Net changes in affiliate advances	758			(892		)	7,010			(6,876		)	—
Repayment of affiliates long-term debt	(7,796		)	—			(605		)	8,401			—
Advances and contributions in aid for construction	—			4,989			17			—			5,006
Refunds of advances for construction	—			(3,467		)	(45		)	—			(3,512		)
Dividends paid to non-affiliates	(14,343		)	—			—			—			(14,343		)
Dividends paid to affiliates	—			(12,889		)	(1,454		)	14,343			—
Issuance of common stock	105,835			—			—			—			105,835
Investment from affiliates	—			35,000			—			(35,000		)	—
Net cash (used in) provided by financing activities	28,794			15,511			4,648			(19,132		)	29,821
Change in cash and cash equivalents	1,401			(555		)	(968		)	—			(122		)
Cash and cash equivalents at beginning of period	1,470			34,609			2,711			—			38,790
Cash and cash equivalents at end of period	$	2,871		$	34,054		$	1,743		$	—		$	38,668

For the six months ended June 30, 2012

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating activities:
Net income (loss)	$	14,050		$	14,573		$	(736	)	$	(13,837	)	$	14,050
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity earnings of subsidiaries	(13,872		)	—			—			13,872			—
Dividends received from affiliates	13,187			—			—			(13,187		)	—
Depreciation and amortization	28			27,147			1,438			(59		)	28,554
Change in value of life insurance contracts	—			(1,635		)	—			—			(1,635		)
Other changes in noncurrent assets and liabilities	927			(2,568		)	(61		)	44			(1,658		)
Changes in operating assets and liabilities	(209		)	(681		)	(6,304		)	(20		)	(7,214		)
Net cash provided by (used in) operating activities	14,111			36,836			(5,663		)	(13,187		)	32,097
Investing activities:
Utility plant expenditures	(151		)	(54,398		)	(7,435		)	—			(61,984		)
Net changes in affiliate advances	(9,905		)	1,696			—			8,209			—
Repayment of affiliates long-term debt	273			24			—			(297		)	—
Purchase of life insurance	—			(1,357		)	—			—			(1,357		)
Restricted cash and other changes, net	—			6			—			—			6
Net cash provided by (used in) investing activities	(9,783		)	(54,029		)	(7,435		)	7,912			(63,335		)
Financing Activities:
Short-term borrowings	11,635			51,000			—			—			62,635
Repayment of short-term borrowings	(1,000		)	(21,000		)	—			—			(22,000		)
Proceeds from long-term debt	—			—			123			—			123
Repayment of long-term debt	—			(1,314		)	(331		)	—			(1,645		)
Net changes in affiliate advances	—			798			7,411			(8,209		)	—
Repayment of affiliates long-term debt	(24		)	—			(273		)	297			—
Advances and contributions in aid for construction	—			2,703			57			—			2,760
Refunds of advances for construction	—			(3,778		)	(57		)	—			(3,835		)
Dividends paid to non-affiliates	(13,187		)	—			—			—			(13,187		)
Dividends paid to affiliates	—			(11,777		)	(1,410		)	13,187			—
Net cash (used in) provided by financing activities	(2,576		)	16,632			5,520			5,275			24,851
Change in cash and cash equivalents	1,752			(561		)	(7,578		)	—			(6,387		)
Cash and cash equivalents at beginning of period	89			18,475			8,639			—			27,203
Cash and cash equivalents at end of period	$	1,841		$	17,914		$	1,061		$	—		$	20,816