Segment and Non-Tariffed Business Reporting

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

SEGMENT AND NONTARIFFED BUSINESS REPORTING

Segment and Non-Tariffed Business Reporting

SJW Group is a holding company with four subsidiaries: (i) San Jose Water Company, a water utility operation with both regulated and non-tariffed businesses, (ii) SJWTX, Inc. which is doing business as Canyon Lake Water Service Company (“CLWSC”), a regulated water utility located in Canyon Lake, Texas, and its consolidated non-tariffed variable interest entity, Acequia Water Supply Corporation, (iii) SJW Land Company and its consolidated variable interest entity, 444 West Santa Clara Street, L.P., which operated commercial building rentals, and (iv) Hydro Sub, Inc., a Connecticut corporation that was formed on March 9, 2018 for the sole purpose of effecting the SJW Group and Connecticut Water Service, Inc. (“CTWS”) proposed merger (see discussion on the proposed merger at Note 11). In accordance with FASB ASC Topic 280 - “Segment Reporting,” SJW Group has determined that it has two reportable business segments. The first segment is that of providing water utility and utility-related services to its customers through SJW Group’s subsidiaries, San Jose Water Company and CLWSC, together referred to as “Water Utility Services.” The second segment is property management and investment activity conducted by SJW Land Company, referred to as “Real Estate Services.”

SJW Group’s reportable segments have been determined based on information used by the chief operating decision maker. SJW Group’s chief operating decision maker includes the Chairman, President and Chief Executive Officer, and his senior staff. The senior staff reviews financial information presented on a consolidated basis that is accompanied by disaggregated information about operating revenue, net income and total assets, by subsidiaries.

The following tables set forth information relating to SJW Group’s reportable segments and distribution of regulated and non-tariffed business activities within the reportable segments. Certain allocated assets, revenue and expenses have been included in the reportable segment amounts. Other business activity of SJW Group not included in the reportable segments is included in the “All Other” category.

	For Three Months Ended June 30, 2019
	Water Utility Services			Real Estate Services	All Other*		SJW Group
	Regulated		Non-tariffed	Non-tariffed	Non-tariffed		Regulated	Non-tariffed		Total
Operating revenue	$	99,773	1,823	1,369	—		99,773	3,192		102,965
Operating expense	75,564		1,356	1,008	3,066		75,564	5,430		80,994
Operating income (loss)	24,209		467	361	(3,066	)	24,209	(2,238	)	21,971
Net income (loss)	13,662		336	662	(1,122	)	13,662	(124	)	13,538
Depreciation and amortization	14,698		105	298	—		14,698	403		15,101
Senior note and other interest expense	6,170		—	—	544		6,170	544		6,714
Income tax expense (benefit) in net income	4,154		130	220	(312	)	4,154	38		4,192
Assets	$	1,537,404	6,149	46,510	413,587		1,537,404	466,246		2,003,650

	For Three Months Ended June 30, 2018
	Water Utility Services			Real Estate Services	All Other*		SJW Group
	Regulated		Non-tariffed	Non-tariffed	Non-tariffed		Regulated	Non-tariffed		Total
Operating revenue	$	95,798	1,967	1,321	—		95,798	3,288		99,086
Operating expense	70,642		1,278	891	3,476		70,642	5,645		76,287
Operating income (loss)	25,156		689	430	(3,476	)	25,156	(2,357	)	22,799
Net income (loss)	15,022		497	296	(2,944	)	15,022	(2,151	)	12,871
Depreciation and amortization	13,272		85	299	—		13,272	384		13,656
Senior note, mortgage and other interest expense	5,540		—	—	544		5,540	544		6,084
Income tax expense (benefit) in net income	4,650		193	92	(867	)	4,650	(582	)	4,068
Assets	$	1,449,714	3,768	46,756	(117	)	1,449,714	50,407		1,500,121

	For Six Months Ended June 30, 2019
	Water Utility Services			Real Estate Services	All Other*		SJW Group
	Regulated		Non-tariffed	Non-tariffed	Non-tariffed		Regulated	Non-tariffed		Total
Operating revenue	$	174,920	2,992	2,735	—		174,920	5,727		180,647
Operating expense	136,149		2,197	1,899	6,023		136,149	10,119		146,268
Operating income (loss)	38,771		795	836	(6,023	)	38,771	(4,392	)	34,379
Net income (loss)	19,762		572	980	(1,903	)	19,762	(351	)	19,411
Depreciation and amortization	29,447		202	597	—		29,447	799		30,246
Senior note and other interest expense	11,390		—	—	1,115		11,390	1,115		12,505
Income tax expense (benefit) in net income	6,230		222	350	(565	)	6,230	7		6,237
Assets	$	1,537,404	6,149	46,510	413,587		1,537,404	466,246		2,003,650

	For Six Months Ended June 30, 2018
	Water Utility Services			Real Estate Services	All Other*		SJW Group
	Regulated		Non-tariffed	Non-tariffed	Non-tariffed		Regulated	Non-tariffed		Total
Operating revenue	$	168,151	3,315	2,662	—		168,151	5,977		174,128
Operating expense	132,343		2,166	1,740	7,749		132,343	11,655		143,998
Operating income (loss)	35,808		1,149	922	(7,749	)	35,808	(5,678	)	30,130
Net income (loss)	19,817		828	652	(7,141	)	19,817	(5,661	)	14,156
Depreciation and amortization	26,473		168	598	—		26,473	766		27,239
Senior note and other interest expense	11,048		—	—	1,088		11,048	1,088		12,136
Income tax expense (benefit) in net income	5,142		322	186	(2,162	)	5,142	(1,654	)	3,488
Assets	$	1,449,714	3,768	46,756	(117	)	1,449,714	50,407		1,500,121

 *    The “All Other” category includes the accounts of SJW Group and Hydro Sub, Inc. on a stand-alone basis. For the three and six months ended June 30, 2019, and 2018, Hydro Sub, Inc. had no recorded revenue or expenses and as of June 30, 2019, and 2018, held no assets and has incurred no liabilities.