Fair Value Measurement

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT

Fair Value Measurement

The following instruments are not measured at fair value on the Company's condensed consolidated balance sheets as of June 30, 2012, but require disclosure of their fair values: cash and cash equivalents, accounts receivable and accounts payable. The estimated fair value of such instruments as of June 30, 2012 approximates their carrying value as reported on the condensed consolidated balance sheets. The fair value of such financial instruments are determined using the income approach based on the present value of estimated future cash flows. There have been no changes in our valuation technique during the three months ended June 30, 2012. The fair value of these instruments would be categorized as Level 2 in the fair value hierarchy, with the exception of cash and cash equivalents, which would be categorized as Level 1. The fair value of pension plan assets is discussed in Note 4.

The fair value of SJW Corp.’s long-term debt was approximately $441,799 and $433,873 as of June 30, 2012 and December 31, 2011, respectively, and was determined using a discounted cash flow analysis, based on the current rates for similar financial instruments of the same duration and creditworthiness of the Company. The book value of the long-term debt was $344,226 and $344,686 as of June 30, 2012 and December 31, 2011, respectively. The fair value of long-term debt would be categorized as Level 2 of the fair value hierarchy.

The following table summarizes the fair value of the Company’s investment in California Water Service Group as required by ASC Topic 820 as of June 30, 2012 and December 31, 2011:

	Fair Value Measurements at June 30, 2012
			Quoted Prices in Active Markets for Identical Assets	Significant Observable Inputs	Significant Unobservable Inputs
	Total		(Level 1)	(Level 2)	(Level 3)
Assets:
Investment in California Water Service Group	$	7,113	7,113	—	—
	Fair Value Measurements at December 31, 2011
			Quoted Prices in Active Markets for Identical Assets	Significant Observable Inputs	Significant Unobservable Inputs
	Total		(Level 1)	(Level 2)	(Level 3)
Assets:
Investment in California Water Service Group	$	7,032	7,032	—	—