Segment Information

9 Months Ended

Sep. 30, 2019

Note 14 – Segment Information

The Company has ten operating segments and one reportable segment. The Regulated segment, the Company’s single reportable segment, is comprised of eight operating segments representing its water and wastewater regulated utility companies which are organized by the states where the Company provides water and wastewater services. These operating segments are aggregated into one reportable segment because each of these operating segments has the following similarities: economic characteristics, nature of services, production processes, customers, water distribution or wastewater collection methods, and the nature of the regulatory environment.

Two operating segments are included within the Other category below. These segments are not quantitatively significant and are comprised of Aqua Infrastructure and Aqua Resources. Aqua Infrastructure provides non-utility raw water supply services for firms in the natural gas drilling industry. Aqua Resources manages a water system operating and maintenance contract, and offers, through a third-party, water and sewer service line protection solutions and repair services to households. In addition to these segments, Other is comprised of other business activities not included in the reportable segment,

including corporate costs that have not been allocated to the Regulated segment and intersegment eliminations. Corporate costs include general and administrative expenses, and interest expense.

The following table presents information about the Company’s reportable segment:



	Three Months Ended						Three Months Ended
	September 30, 2019						September 30, 2018
	Regulated		Other		Consolidated		Regulated		Other		Consolidated
Operating revenues	$	242,856	$	770	$	243,626	$	225,361	$	776	$	226,137
Operations and maintenance expense		81,078		944		82,022		68,964		(340)		68,624
Depreciation		39,477		12		39,489		37,449		8		37,457
Amortization		304		140		444		136		63		199
Operating income (loss)		106,833		(363)		106,470		103,674		619		104,293
Interest expense		24,425		8,218		32,643		22,720		2,683		25,403
Interest income		17		9,663		9,680		31		13		44
Allowance for funds used during construction		4,613		-		4,613		3,066		-		3,066
Equity earnings in joint venture		-		135		135		-		215		215
Provision for income taxes (benefit)		(2,561)		1,008		(1,553)		4,347		(412)		3,935
Net income (loss)		88,888		(399)		88,489		80,126		(1,910)		78,216

	Nine Months Ended						Nine Months Ended
	September 30, 2019						September 30, 2018
	Regulated		Other		Consolidated		Regulated		Other		Consolidated
Operating revenues	$	661,082	$	2,568	$	663,650	$	629,692	$	2,652	$	632,344
Operations and maintenance expense		229,498		18,283		247,781		213,314		2,771		216,085
Depreciation		118,014		99		118,113		110,010		27		110,037
Amortization		(2,560)		420		(2,140)		327		151		478
Operating income (loss)		272,596		(17,738)		254,858		262,404		(2,020)		260,384
Interest expense		72,170		20,069		92,239		66,226		6,438		72,664
Interest income		37		18,080		18,117		73		38		111
Allowance for funds used during construction		12,280		-		12,280		8,510		-		8,510
Equity earnings in joint venture		-		1,918		1,918		-		1,508		1,508
Provision for income taxes (benefit)		291		(12,185)		(11,894)		3,557		(2,120)		1,437
Net income (loss)		210,285		(49,969)		160,316		202,030		(6,385)		195,645
Capital expenditures		401,558		-		401,558		343,219		-		343,219


	September 30,		December 31,
	2019		2018
Total assets:
Regulated	$	7,238,003	$	6,807,960
Other		2,102,967		156,536
Consolidated	$	9,340,970	$	6,964,496