Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2015

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Balance Sheet

As of March 31, 2015

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Utility plant:
Utility plant	$	1,318		$	2,183,726		$	195,320		$	(7,197	)	$	2,373,167
Less accumulated depreciation and amortization	(434		)	(723,893		)	(43,965		)	1,747			(766,545		)
Net utility plant	884			1,459,833			151,355			(5,450		)	1,606,622
Current assets:
Cash and cash equivalents	316			31,200			1,795			—			33,311
Receivables and unbilled revenue	—			106,800			3,491			—			110,291
Receivables from affiliates	23,235			883			84			(24,202		)	—
Other current assets	406			14,016			1,231			—			15,653
Total current assets	23,957			152,899			6,601			(24,202		)	159,255
Other assets:
Regulatory assets	—			398,090			2,999			—			401,089
Investments in affiliates	632,396			—			—			(632,396		)	—
Long-term affiliate notes receivable	25,006			—			—			(25,006		)	—
Other assets	894			48,829			5,180			(1,124		)	53,779
Total other assets	658,296			446,919			8,179			(658,526		)	454,868
	$	683,137		$	2,059,651		$	166,135		$	(688,178	)	$	2,220,745
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	620,666		$	563,439		$	74,369		$	(637,808	)	$	620,666
Affiliate long-term debt	—			—			25,006			(25,006		)	—
Long-term debt, less current maturities	—			417,678			1,336			—			419,014
Total capitalization	620,666			981,117			100,711			(662,814		)	1,039,680
Current liabilities:
Current maturities of long-term debt	—			6,182			414			—			6,596
Short-term borrowings	61,715			47,400			—			—			109,115
Payables to affiliates	—			1,579			22,623			(24,202		)	—
Accounts payable	—			54,851			2,833			—			57,684
Accrued expenses and other liabilities	116			78,199			2,224			9			80,548
Total current liabilities	61,831			188,211			28,094			(24,193		)	253,943
Unamortized investment tax credits	—			2,032			—			—			2,032
Deferred income taxes, net	640			215,345			—			(1,171		)	214,814
Pension and postretirement benefits other than pensions	—			277,094			—			—			277,094
Regulatory and other liabilities	—			72,456			9,043			—			81,499
Advances for construction	—			181,039			514			—			181,553
Contributions in aid of construction	—			142,357			27,773			—			170,130
	$	683,137		$	2,059,651		$	166,135		$	(688,178	)	$	2,220,745

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2014

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Utility plant:
Utility plant	$	1,318		$	2,154,146		$	194,204		$	(7,197	)	$	2,342,471
Less accumulated depreciation and amortization	(377		)	(710,840		)	(42,545		)	1,722			(752,040		)
Net utility plant	941			1,443,306			151,659			(5,475		)	1,590,431
Current assets:
Cash and cash equivalents	4,108			13,929			1,550			—			19,587
Receivables	—			108,815			9,114			(1,051		)	116,878
Receivables from affiliates	20,001			3,608			—			(23,609		)	—
Other current assets	—			16,443			1,216			—			17,659
Total current assets	24,109			142,795			11,880			(24,660		)	154,124
Other assets:
Regulatory assets	—			387,387			2,944			—			390,331
Investments in affiliates	637,998			—			—			(637,998		)	—
Long-term affiliate notes receivable	25,263			—			—			(25,263		)	—
Other assets	891			47,617			4,278			(321		)	52,465
Total other assets	664,152			435,004			7,222			(663,582		)	442,796
	$	689,202		$	2,021,105		$	170,761		$	(693,717	)	$	2,187,351
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stockholders’ equity	$	626,626		$	569,319		$	74,107		$	(643,426	)	$	626,626
Affiliate long-term debt	—			—			25,263			(25,263		)	—
Long-term debt, less current maturities	—			417,884			1,349			—			419,233
Total capitalization	626,626			987,203			100,719			(668,689		)	1,045,859
Current liabilities:
Current maturities of long-term debt	—			6,173			434			—			6,607
Short-term borrowings	61,715			17,400			—			—			79,115
Payables to affiliates	—			270			23,339			(23,609		)	—
Accounts payable	—			56,666			2,930			(201		)	59,395
Accrued expenses and other liabilities	861			71,203			1,281			(756		)	72,589
Total current liabilities	62,576			151,712			27,984			(24,566		)	217,706
Unamortized investment tax credits	—			2,032			—			—			2,032
Deferred income taxes, net	—			210,789			4,515			(462		)	214,842
Pension and postretirement benefits other than pensions	—			270,865			—			—			270,865
Regulatory and other liabilities	—			74,282			8,997			—			83,279
Advances for construction	—			181,763			521			—			182,284
Contributions in aid of construction	—			142,459			28,025			—			170,484
	$	689,202		$	2,021,105		$	170,761		$	(693,717	)	$	2,187,351

Schedule of Condensed Consolidating Statement of Operations

For the three months ended March 31, 2015

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	114,507		$	7,478		$	—		$	121,985
Operating expenses:
Operations:
Water production costs	—			43,376			1,826			—			45,202
Administrative and general	—			24,855			2,840			—			27,695
Other operations	—			14,270			1,699			(126		)	15,843
Maintenance	—			4,264			193			—			4,457
Depreciation and amortization	57			14,203			1,084			(25		)	15,319
Income tax (benefit) expense	(68		)	930			(453		)	204			613
Taxes other than income taxes	—			4,750			609			—			5,359
Total operating (income) expenses	(11		)	106,648			7,798			53			114,488
Net operating income (loss)	11			7,859			(320		)	(53		)	7,497
Other Income and Expenses:
Non-regulated revenue	454			2,873			398			(478		)	3,247
Non-regulated expenses, net	—			(2,032		)	(211		)	—			(2,243		)
Income tax (expense) benefit on other income and expense	(185		)	(343		)	(69		)	194			(403		)
Net other income (expense)	269			498			118			(284		)	601
Interest expense:
Interest expense	110			6,860			451			(352		)	7,069
Less: capitalized interest	—			(533		)	(13		)	—			(546		)
Net interest expense	110			6,327			438			(352		)	6,523
Equity earnings of subsidiaries	1,405			—			—			(1,405		)	—
Net (loss) income	$	1,575		$	2,030		$	(640	)	$	(1,390	)	$	1,575

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three months ended March 31, 2014

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating revenue	$	—		$	103,749		$	6,766		$	—		$	110,515
Operating expenses:
Operations:
Water production costs	—			43,368			2,034			—			45,402
Administrative and general	—			22,772			2,369			—			25,141
Other operations	—			14,662			1,840			(126		)	16,376
Maintenance	—			4,823			182			—			5,005
Depreciation and amortization	43			14,954			1,083			(27		)	16,053
Income tax (benefit)	(50		)	(3,348		)	(658		)	217			(3,839		)
Taxes other than income taxes	—			4,650			575			—			5,225
Total operating (income) expenses	(7		)	101,881			7,425			64			109,363
Net operating income (loss)	7			1,868			(659		)	(64		)	1,152
Other Income and Expenses:
Non-regulated revenue	467			4,029			377			(593		)	4,280
Non-regulated expenses, net	—			(3,639		)	(480		)	—			(4,119		)
Income tax (expense) benefit on other income and expense	(190		)	(159		)	64			206			(79		)
Net other income (expense)	277			231			(39		)	(387		)	82
Interest expense:
Interest expense	79			6,960			503			(467		)	7,075
Less: capitalized interest	—			(341		)	(24		)	—			(365		)
Net interest expense	79			6,619			479			(467		)	6,710
Equity earnings of subsidiaries	(5,681		)	—			—			5,681			—
Net (loss)	$	(5,476	)	$	(4,520	)	$	(1,177	)	$	5,697		$	(5,476	)

Schedule of Condensed Consolidating Statement of Cash Flows

For the three months ended March 31, 2015

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating activities:
Net income	$	1,575		$	2,030		$	(640	)	$	(1,390	)	$	1,575
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings of subsidiaries	(1,405		)	—			—			1,405			—
Dividends received from affiliates	8,007			—			—			(8,007		)	—
Depreciation and amortization	57			14,575			1,129			(25		)	15,736
Change in value of life insurance contracts	—			(161		)	—			—			(161		)
Other changes in noncurrent assets and liabilities	1,109			10,717			(5,385		)	94			6,535
Changes in operating assets and liabilities:	(1,151		)	(2,185		)	6,624			(84		)	3,204
Net cash provided by (used in) operating activities	8,192			24,976			1,728			(8,007		)	26,889
Investing activities:
Utility plant expenditures	—			(33,793		)	(1,254		)	—			(35,047		)
Investment in affiliates	(1,000		)	—			—			1,000			—
Change in affiliate advances	(3,220		)	2,725			(172		)	667			—
Proceeds from affiliates long-term debt	243			—			—			(243		)	—
Changes in restricted cash	—			(26		)	—			—			(26		)
Net cash provided by (used in) investing activities	(3,977		)	(31,094		)	(1,426		)	1,424			(35,073		)
Financing Activities:
Short-term borrowings	—			30,000			—			—			30,000
Investment from affiliates	—			—			1,000			(1,000		)	—
Changes in affiliate advances	—			1,309			(642		)	(667		)	—
Repayment of affiliates long-term borrowings	—			—			(243		)	243			—
Proceeds from long-term debt	—			—			50			—			50
Repayment of long-term debt	—			(197		)	(141		)	—			(338		)
Advances and contributions in aid of construction	—			1,759			18			—			1,777
Refunds of advances for construction	—			(1,573		)	(1		)	—			(1,574		)
Dividends paid to non-affiliates	(8,007		)	—			—			—			(8,007		)
Dividends paid to affiliates	—			(7,909		)	(98		)	8,007			—
Net cash provided by (used in) financing activities	(8,007		)	23,389			(57		)	6,583			21,908
Change in cash and cash equivalents	(3,792		)	17,271			245			—			13,724
Cash and cash equivalents at beginning of period	4,108			13,929			1,550			—			19,587
Cash and cash equivalents at end of period	$	316		$	31,200		$	1,795		$	—		$	33,311

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the three months ended March 31, 2014

(In thousands)

	Parent Company			Cal Water			All Other Subsidiaries			Consolidating Adjustments			Consolidated
Operating activities:
Net (loss)	$	(5,476	)	$	(4,520	)	$	(1,177	)	$	5,697		$	(5,476	)
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities:
Equity earnings of subsidiaries	5,681			—			—			(5,681		)	—
Dividends received from affiliates	7,758			—			—			(7,758		)	—
Depreciation and amortization	43			15,424			1,124			(27		)	16,564
Change in value of life insurance contracts	—			(158		)	—			—			(158		)
Other changes in noncurrent assets and liabilities	772			(9,176		)	(641		)	11			(9,034		)
Changes in operating assets and liabilities:
Other changes, net	(229		)	7,582			1,224			—			8,577
Net cash provided by operating activities	8,549			9,152			530			(7,758		)	10,473
Investing activities:
Utility plant expenditures	—			(22,896		)	(1,724		)	—			(24,620		)
Changes in affiliate advances	(2,989		)	1,510			(181		)	1,660			—
Proceeds from affiliates long-term debt	230			—			—			(230		)	—
Purchase of life insurance	—			(1,674		)	—			—			(1,674		)
Changes in restricted cash and other changes, net	—			418			—			—			418
Net cash (used in) investing activities	(2,759		)	(22,642		)	(1,905		)	1,430			(25,876		)
Financing Activities:
Short-term borrowings	2,200			20,000			—			—			22,200
Repayment of short-term borrowings	(5,000		)	—			—			—			(5,000		)
Changes in affiliate advances	—			356			1,304			(1,660		)	—
Repayment of affiliates long-term borrowings	—			—			(230		)	230			—
Repayment of long-term debt	—			(304		)	(156		)	—			(460		)
Advances and contributions in aid for construction	—			1,735			459			—			2,194
Refunds of advances for construction	—			(1,521		)	(14		)	—			(1,535		)
Dividends paid to non-affiliates	(7,758		)	—			—			—			(7,758		)
Dividends paid to affiliates	—			(7,469		)	(289		)	7,758			—
Net cash provided by (used in) financing activities	(10,558		)	12,797			1,074			6,328			9,641
Change in cash and cash equivalents	(4,768		)	(693		)	(301		)	—			(5,762		)
Cash and cash equivalents at beginning of period	5,280			20,790			1,436			—			27,506
Cash and cash equivalents at end of period	$	512		$	20,097		$	1,135		$	—		$	21,744