Segment and Non-Tariffed Business Reporting

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment and Non-Tariffed Business Reporting

Segment and Non-Tariffed Business ReportingSJW Group is a holding company with five subsidiaries: (i) SJWC, a water utility operation with both regulated and non-tariffed businesses, (ii) 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, (iv) SJWNE LLC a holding company for CTWS and its subsidiaries, The Connecticut Water Company, The Maine Water Company, New England Water Utility Services, Inc. and Chester Realty, Inc., and (v) SJWTX Holdings, Inc. which was formed for the purpose of effecting a corporate reorganization of the water utility operations in Texas. In accordance with FASB ASC Topic 280 - “Segment Reporting,” 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 executive staff. The first segment is providing water utility and utility-related services to its customers through SJW Group’s subsidiaries, SJWC, Connecticut Water, CLWSC, Maine Water, and NEWUS together referred to as “Water Utility Services.” The second segment is property management and investment activity conducted by SJW Land Company and Chester Realty, Inc., referred to as “Real Estate Services.”

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, such as goodwill, 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, 2022
	Water Utility Services			Real Estate Services	All Other (1)	SJW Group
	Regulated		Non-tariffed	Non-tariffed	Non-tariffed	Regulated	Non-tariffed	Total
Operating revenue	$	144,261	3,414	1,366	—	144,261	4,780	149,041
Operating expense	119,430		1,797	915	497	119,430	3,209	122,639
Operating income (loss)	24,831		1,617	451	(497)	24,831	1,571	26,402
Net income (loss)	12,765		1,768	323	(3,298)	12,765	(1,207)	11,558
Depreciation and amortization	24,458		165	301	283	24,458	749	25,207
Interest on long-term debt and other interest expense	9,805		—	(3)	4,439	9,805	4,436	14,241
Provision (benefit) for income taxes	2,721		443	110	(906)	2,721	(353)	2,368
Assets	$	3,435,758	4,220	44,033	57,036	3,435,758	105,289	3,541,047

	For Three Months Ended June 30, 2021
	Water Utility Services			Real Estate Services	All Other (1)	SJW Group
	Regulated		Non-tariffed	Non-tariffed	Non-tariffed	Regulated	Non-tariffed	Total
Operating revenue	$	148,237	2,684	1,320	—	148,237	4,004	152,241
Operating expense	115,572		1,942	881	1,207	115,572	4,030	119,602
Operating income (loss)	32,665		742	439	(1,207)	32,665	(26)	32,639
Net income (loss)	20,585		677	296	(783)	20,585	190	20,775
Depreciation and amortization	22,887		110	291	224	22,887	625	23,512
Interest on long-term debt and other interest expense	8,347		—	—	5,334	8,347	5,334	13,681
Provision (benefit) for income taxes	4,580		203	96	(1,573)	4,580	(1,274)	3,306
Assets	$	3,300,414	8,248	45,090	55,770	3,300,414	109,108	3,409,522

	For Six Months Ended June 30, 2022
	Water Utility Services			Real Estate Services	All Other (1)	SJW Group
	Regulated		Non-tariffed	Non-tariffed	Non-tariffed	Regulated	Non-tariffed	Total
Operating revenue	$	264,779	5,842	2,722	—	264,779	8,564	273,343
Operating expense	220,881		5,776	1,824	1,871	220,881	9,471	230,352
Operating income (loss)	43,898		66	898	(1,871)	43,898	(907)	42,991
Net income (loss)	22,480		451	631	(8,267)	22,480	(7,185)	15,295
Depreciation and amortization	48,969		2,737	601	506	48,969	3,844	52,813
Interest on long-term debt and other interest expense	18,568		—	(3)	9,405	18,568	9,402	27,970
Provision (benefit) for income taxes	4,741		6	213	(1,525)	4,741	(1,306)	3,435
Assets	$	3,435,758	4,220	44,033	57,036	3,435,758	105,289	3,541,047

	For Six Months Ended June 30, 2021
	Water Utility Services			Real Estate Services	All Other (1)	SJW Group
	Regulated		Non-tariffed	Non-tariffed	Non-tariffed	Regulated	Non-tariffed	Total
Operating revenue	$	259,633	4,729	2,664	—	259,633	7,393	267,026
Operating expense	214,050		3,311	1,762	2,185	214,050	7,258	221,308
Operating income (loss)	45,583		1,418	902	(2,185)	45,583	135	45,718
Net income (loss)	26,284		1,399	619	(4,911)	26,284	(2,893)	23,391
Depreciation and amortization	45,704		219	580	447	45,704	1,246	46,950
Interest on long-term debt and other interest expense	16,518		—	—	10,602	16,518	10,602	27,120
Provision (benefit) for income taxes	4,464		385	205	(2,644)	4,464	(2,054)	2,410
Assets	$	3,300,414	8,248	45,090	55,770	3,300,414	109,108	3,409,522

____________________

(1)    The “All Other” category for the six months ended June 30, 2022, includes the accounts of SJW Group, SJWNE LLC, CTWS and SJWTX Holdings, Inc. on a stand-alone basis. SJWTX Holdings, Inc. had no activity for the six months ended June 30, 2022 . For the six months ended June 30, 2021, “All Other” category includes the accounts of SJW Group, SJWNE LLC and CTWS on a stand-alone basis.

(2)    As of June 30, 2022 and December 31, 2021, the Company has performed an allocation of goodwill associated with the acquisition of CTWS to two reporting units, Connecticut and Maine, which are both aggregated within the Regulated Water Utility Services reportable segment.