Segment Information

12 Months Ended

Dec. 31, 2019

Note 18 – Segment Information

The Company has ten operating segments and one reportable segment. The Regulated water segment, the Company’s single reportable segment, is comprised of eight operating segments representing our water and wastewater regulated utility companies which are organized by the states where we provide water and wastewater services. These operating segments are aggregated into one reportable segment since 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. 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 water segment, because they would not be recoverable as a cost of utility service, and intersegment eliminations. Corporate costs include general and administrative expenses, and interest expense.

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



	2019						2018
		Regulated Water		Other and Eliminations		Consolidated		Regulated Water		Other and Eliminations		Consolidated
Operating revenues	$	886,430	$	3,262	$	889,692	$	834,638	$	3,453	$	838,091
Operations and maintenance expense		315,052		18,050		333,102		292,232		16,246		308,478
Depreciation		158,162		17		158,179		145,977		55		146,032
Amortization		(2,264)		561		(1,703)		401		240		641
Operating income (loss)		357,979		(17,820)		340,159		338,388		(15,210)		323,178
Interest expense		97,995		27,388		125,383		89,207		9,847		99,054
Interest income		54		25,352		25,406		95		57		152
Allowance for funds used during construction		16,172		-		16,172		13,023		-		13,023
Equity earnings in joint venture		-		2,210		2,210		-		2,081		2,081
Provision for income taxes (benefit)		(1,267)		(11,750)		(13,017)		4,158		(17,827)		(13,669)
Net income (loss)		274,920		(50,377)		224,543		259,160		(67,172)		191,988
Capital expenditures		550,273		-		550,273		495,730		7		495,737
Total assets		7,269,404		2,092,581		9,361,985		6,807,960		156,536		6,964,496

	2017
		Regulated Water		Other and Eliminations		Consolidated
Operating revenues	$	804,905	$	4,620	$	809,525
Operations and maintenance expense		282,009		244		282,253
Depreciation		136,246		56		136,302
Amortization		240		182		422
Operating income		331,888		2,032		333,920
Interest expense		82,102		6,441		88,543
Interest income		128		74		202
Allowance for funds used during construction		15,211		-		15,211
Equity earnings in joint venture		-		331		331
Provision for income taxes		14,107		2,807		16,914
Net income (loss)		246,548		(6,810)		239,738
Capital expenditures		478,077		12		478,089
Total assets		6,236,109		96,354		6,332,463