SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT

CONDENSED BALANCE SHEETS

	December 31,
(in thousands)	2016		2015
Assets
Cash and equivalents	$	32	$	836
Inter-company note receivables	76,931		12,000
Income taxes receivable and other receivables	—		11
Total current assets	76,963		12,847
Investments in subsidiaries	506,584		479,397
Deferred taxes and other assets	6,964		5,604
Total assets	$	590,511	$	497,848
Liabilities and Capitalization
Notes payable to bank	$	90,000	$	28,000
Income taxes payable	4,043		2,579
Inter-company payables	—		474
Deferred taxes and other liabilities	517		28
Total current liabilities	94,560		31,081
Deferred taxes	—		734
Income taxes payable and other liabilities	1,654		88
Total other liabilities	1,654		822
Common shareholders’ equity	494,297		465,945
Total capitalization	494,297		465,945
Total liabilities and capitalization	$	590,511	$	497,848

The accompanying condensed notes are an integral part of these condensed financial statements.

CONDENSED STATEMENTS OF INCOME 

	For the Years Ended December 31,
(In thousands, except per share amounts)	2016			2015			2014
Operating revenues and other income	$	71		$	98		$	81
Operating expenses and other expenses	19			11			48
Income before equity in earnings of subsidiaries and income taxes	52			87			33
Equity in earnings of subsidiaries	59,145			59,587			60,029
Income before income taxes	59,197			59,674			60,062
Income tax expense (benefit)	(546		)	(810		)	(996		)
Net income	$	59,743		$	60,484		$	61,058
Weighted Average Number of Common Shares Outstanding	36,552			37,389			38,658
Basic Earnings Per Common Share	$	1.63		$	1.61		$	1.57
Weighted Average Number of Diluted Common Shares Outstanding	36,750			37,614			38,880
Fully Diluted Earnings per Common Share	$	1.62		$	1.60		$	1.57
Dividends Paid Per Common Share	$	0.914		$	0.874		$	0.831

The accompanying condensed notes are an integral part of these condensed financial statements.

CONDENSED STATEMENTS OF CASH FLOWS

	For the Years Ended December 31,
(in thousands)	2016			2015			2014
Cash Flows From Operating Activities	$	34,878		$	57,682		$	61,092
Cash Flows From Investing Activities:
Loans (made to)/repaid from, wholly-owned subsidiaries	(64,500		)	(12,000		)	19,668
Net cash provided (used) in investing activities	(64,500		)	(12,000		)	19,668
Cash Flows From Financing Activities:
Repurchase of Common Shares	—			(72,893		)	(17,180		)
Proceeds from note payable to GSWC	—			20,700			8,300
Repayment of note payable to GSWC	—			(20,700		)	(8,800		)
Proceeds from stock option exercises	235			1,198			589
Net change in notes payable to banks	62,000			28,000			—
Dividends paid	(33,408		)	(32,690		)	(32,111		)
Other	(9		)	(90		)	(36		)
Net cash provided (used) in financing activities	28,818			(76,475		)	(49,238		)
Change in cash and equivalents	(804		)	(30,793		)	31,522
Cash and equivalents at beginning of period	836			31,629			107
Cash and equivalents at the end of period	$	32		$	836		$	31,629

The accompanying condensed notes are an integral part of these condensed financial statements.

Basis of Presentation

The accompanying condensed financial statements of AWR (parent) should be read in conjunction with the consolidated financial statements and notes thereto of American States Water Company and subsidiaries (“Registrant”) included in Part II, Item 8 of this Form 10-K.  AWR’s (parent) significant accounting policies are consistent with those of Registrant and its wholly-owned subsidiaries, Golden State Water Company (“GSWC”) and American States Utility Services, Inc. ("ASUS"), except that all subsidiaries are accounted for as equity method investments.

Related Party Transactions:

As further discussed in Note 2 — Notes Payable to Banks, AWR (parent) has access to a $150.0 million syndicated credit facility. AWR (parent) borrows under this facility and provides funds to its subsidiaries, in support of their operations. Any amounts owed to AWR (parent) for borrowings under this facility are reflected as inter-company receivables on the condensed balance sheets.  The interest rate charged to the subsidiaries is sufficient to cover AWR (parent)’s interest cost under the credit facility.

In October 2015, AWR issued interest bearing promissory notes (the "Notes") to GSWC and ASUS for $40 million and $10 million, respectively, which expire on May 23, 2018. Under the terms of the Notes, AWR may borrow from GSWC and ASUS amounts up to $40 million and $10 million, respectively, for working capital purposes. AWR agrees to pay any unpaid principal amounts outstanding under these notes, plus accrued interest. As of December 31, 2016 and 2015, there were no amounts outstanding under these notes.

AWR (parent) guarantees performance of ASUS's military privatization contracts and agrees to provide necessary resources, including financing, which are necessary to assure the complete and satisfactory performance of such contracts.

Note Payable to Banks

     AWR (parent) has access to a syndicated credit facility, which expires in May 2018. In October 2016, AWR elected to increase the aggregate commitment as permitted under the terms of the facility agreement from $100.0 million to $150.0 million. The aggregate effective amount that may be outstanding under letters of credit is $25.0 million.  AWR has obtained letters of credit, primarily for GSWC, in the aggregate amount of $9.9 million, with fees of 0.65% including: (i) a $5.4 million letter of credit representing a percentage of the outstanding American Recovery and Reinvestment Act (“ARRA”) funds received by GSWC for reimbursement of capital costs related to the installation of meters in GSWC’s Arden-Cordova water system, (ii) letters of credit in an aggregate amount of $340,000 as security for GSWC’s business automobile insurance policy, (iii) a letter of credit in an amount of $585,000 as security for the purchase of power, (iv) a $15,000 irrevocable letter of credit pursuant to a franchise agreement with the City of Rancho Cordova, and (v) an irrevocable letter of credit in the amount of $3.6 million, pursuant to a settlement agreement with Southern California Edison Company to cover GSWC’s commitment to pay the settlement amount. Letters of credit outstanding reduce the amount that may be borrowed under the revolving credit facility. There were no compensating balances required.

Loans can be obtained at the option of AWR and bear interest at rates based on credit ratings and Euro rate margins.  In April 2016, Standard & Poor's Rating Services ("S&P") affirmed the A+ credit rating and stable outlook on both AWR and GSWC. S&P's debt ratings range from AAA (highest rating possible) to D (obligation is in default). In December 2016, Moody's Investors Service ("Moody's") affirmed its A2 rating with a stable outlook for GSWC.

At December 31, 2016, there was $90.0 million outstanding under this facility. At times, AWR (parent) borrows under this facility and provides loans to its subsidiaries in support of its operations, under terms that are similar to that of the credit facility.

AWR’s (parent) short-term borrowing activities (excluding letters of credit) for the years ended December 31, 2016 and 2015 were as follows:

	December 31,
(in thousands, except percent)	2016			2015
Balance Outstanding at December 31,	$	90,000		$	28,000
Interest Rate at December 31,	1.46		%	1.09		%
Average Amount Outstanding	$	59,261		$	4,112
Weighted Average Annual Interest Rate	1.20		%	0.92		%
Maximum Amount Outstanding	$	96,000		$	37,000

All of the letters of credit are issued pursuant to the syndicated revolving credit facility. The syndicated revolving credit facility contains restrictions on prepayments, disposition of property, mergers, liens and negative pledges, indebtedness and guaranty obligations, transactions with affiliates, minimum interest coverage requirements, a maximum debt to capitalization ratio and a minimum debt rating. Pursuant to the credit agreement, AWR must maintain a minimum interest coverage ratio of 3.25 times interest expense, a maximum total funded debt ratio of 0.65 to 1.00 and a minimum debt rating from Moody’s or S&P of Baa3 or BBB-, respectively. As of December 31, 2016, AWR was in compliance with these covenants with an interest coverage ratio of 7.07 times interest expense, a debt ratio of 0.46 to 1.00 and a debt rating of A+.

Income Taxes

     AWR (parent) receives a tax benefit for expenses incurred at the parent-company level.  AWR (parent) also recognizes the effect of AWR’s consolidated California unitary apportionment, which is beneficial or detrimental depending on a combination of the profitability of AWR’s consolidated non-California activities as well as the proportion of its consolidated California sales to total sales.

Dividend from Subsidiaries

Dividends in the amount of $33.8 million, $62.0 million and $52.0 million were paid to AWR (parent) by its wholly-owned subsidiaries during the years ended December 31, 2016, 2015 and 2014, respectively.