Business Segments

AWR has 3 reportable segments, water, electric and contracted services, whereas GSWC has 2 segments, water and electric. AWR has no material assets other than its investments in its subsidiaries on a stand-alone basis.

All activities of GSWC are geographically located within California. Activities of ASUS and the Military Utility Privatization Subsidiaries are conducted in California, Florida, Georgia, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia. In September 2017, ASUS was awarded a new 50-year contract by the U.S. government for water and wastewater operations at Fort Riley located in Kansas. ASUS expects to assume operations at Fort Riley following the completion of a six-to-twelve-month transition period currently underway. Each of the Military Utility Privatization Subsidiaries is regulated, if applicable, by the state in which the subsidiary primarily conducts water and/or wastewater operations. Fees charged for operations and maintenance and renewal and replacement services are based upon the terms of the contracts with the U.S. government which have been filed, as appropriate, with the commissions in the states in which ASUS’s subsidiaries are incorporated.

The tables below set forth information relating to GSWC’s operating segments, ASUS and the Military Utility Privatization Subsidiaries and other matters. Total assets by segment are not presented below, as certain of Registrant’s assets are not tracked by segment. The utility plant balances are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash and exclude U.S. government-funded and third-party prime funded capital expenditures for ASUS and property installed by developers and conveyed to GSWC.



	As Of And For The Year Ended December 31, 2017
	GSWC				ASUS		AWR			Consolidated
(dollars in thousands)	Water		Electric		Contracts		Parent			AWR
Operating revenues	$	306,332	$	33,969	$	100,302	$	—		$	440,603
Operating income (loss)	98,797		7,251		21,124		(96		)	127,076
Interest expense, net	18,909		1,380		255		248			20,792
Utility Plant	1,137,995		59,945		7,052		—			1,204,992
Depreciation and amortization expense (1)	35,706		2,146		1,179		—			39,031
Income tax expense/(benefit)	32,212		1,847		7,136		(2,221		)	38,974
Capital additions	104,546		5,941		2,639		—			113,126



	As Of And For The Year Ended December 31, 2016
	GSWC				ASUS		AWR			Consolidated
(dollars in thousands)	Water		Electric		Contracts		Parent			AWR
Operating revenues	$	302,931	$	35,771	$	97,385	$	—		$	436,087
Operating income (loss)	87,911		7,908		18,916		(19		)	114,716
Interest expense, net	19,696		1,337		68		134			21,235
Utility Plant	1,089,031		56,280		5,615		—			1,150,926
Depreciation and amortization expense (1)	35,777		2,027		1,046		—			38,850
Income tax expense/(benefit)	25,894		2,715		6,672		(546		)	34,735
Capital additions	120,850		7,063		1,954		—			129,867



	As Of And For The Year Ended December 31, 2015
	GSWC				ASUS		AWR			Consolidated
(dollars in thousands)	Water		Electric		Contracts		Parent			AWR
Operating revenues	$	328,511	$	36,039	$	94,091	$	—		$	458,641
Operating income (loss)	94,213		6,196		18,091		(11		)	118,489
Interest expense, net	19,468		1,090		26		46			20,630
Utility Plant	1,005,114		51,002		4,678		—			1,060,794
Depreciation and amortization expense (1)	39,190		1,703		1,140		—			42,033
Income tax expense/(benefit)	30,302		2,170		6,069		(810		)	37,731
Capital additions	77,440		8,704		1,179		—			87,323

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(1) Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $242,000, $259,000 and $641,000 for the years ended December 31, 2017, 2016 and 2015, respectively.

The following table reconciles total utility plant (a key figure for rate-making) to total consolidated assets (in thousands):



	December 31,
	2017		2016
Total utility plant	$	1,204,992	$	1,150,926
Other assets	211,742		319,567
Total consolidated assets	$	1,416,734	$	1,470,493