Earnings per Share/Capital Stock:

3 Months Ended

Mar. 31, 2018

Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Table Text Block]

The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating diluted net income per share:



Diluted:	For The Three Months Ended March 31,
(in thousands, except per share amounts)	2018		2017
Common shareholders earnings, basic	$	10,729	$	12,641
Undistributed earnings for dilutive stock-based awards	8		18
Total common shareholders earnings, diluted	$	10,737	$	12,659

Weighted average common shares outstanding, basic	36,712		36,590
Stock-based compensation (1)	162		192
Weighted average common shares outstanding, diluted	36,874		36,782

Diluted earnings per Common Share	$	0.29	$	0.34

(1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted EPS, 47,792 and 120,138 stock options at March 31, 2018 and 2017, respectively, were deemed to be outstanding in accordance with accounting guidance on earnings per share. All of the 193,740 and 194,031 restricted stock units at March 31, 2018 and 2017, respectively, were included in the calculation of diluted EPS for the three months ended March 31, 2018 and 2017.

Earnings per Share/Capital Stock

In accordance with the accounting guidance for participating securities and earnings per share (“EPS”), Registrant uses the “two-class” method of computing EPS. The “two-class” method is an earnings allocation formula that determines EPS for each class of common stock and participating security. AWR has participating securities related to restricted stock units that earn dividend equivalents on an equal basis with AWR’s Common Shares that have been issued under AWR's stock incentive plans for employees and the non-employee directors stock plans. In applying the “two-class” method, undistributed earnings are allocated to both common shares and participating securities.

The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used for calculating basic net income per share:



Basic:	For The Three Months Ended March 31,
(in thousands, except per share amounts)	2018		2017
Net income	$	10,782	$	12,701
Less: (a) Distributed earnings to common shareholders	9,362		8,854
Distributed earnings to participating securities	46		42
Undistributed earnings	1,374		3,805

(b) Undistributed earnings allocated to common shareholders	1,367		3,787
Undistributed earnings allocated to participating securities	7		18
Total income available to common shareholders, basic (a)+(b)	$	10,729	$	12,641

Weighted average Common Shares outstanding, basic	36,712		36,590
Basic earnings per Common Share	$	0.29	$	0.35

Diluted EPS is based upon the weighted average number of Common Shares, including both outstanding shares and shares potentially issuable in connection with stock options and restricted stock units granted under AWR’s stock incentive plans for employees and the non-employee directors stock plans, and net income. At March 31, 2018 and 2017, there were 47,792 and 120,138 options outstanding, respectively, under these plans. At March 31, 2018 and 2017, there were also 193,740 and 194,031 restricted stock units outstanding, respectively, including performance shares awarded to officers of the Registrant.

The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating diluted net income per share:



Diluted:	For The Three Months Ended March 31,
(in thousands, except per share amounts)	2018		2017
Common shareholders earnings, basic	$	10,729	$	12,641
Undistributed earnings for dilutive stock-based awards	8		18
Total common shareholders earnings, diluted	$	10,737	$	12,659

Weighted average common shares outstanding, basic	36,712		36,590
Stock-based compensation (1)	162		192
Weighted average common shares outstanding, diluted	36,874		36,782

Diluted earnings per Common Share	$	0.29	$	0.34

No stock options outstanding at March 31, 2018 had an exercise price greater than the average market price of AWR’s Common Shares for the three and three months ended March 31, 2018. There were no stock options outstanding at March 31, 2018 or 2017 that were anti-dilutive.

During the three months ended March 31, 2018 and 2017, AWR issued 52,622 and 44,832 common shares, for approximately $340,000 and $35,000, respectively, under Registrant’s Common Share Purchase and Dividend Reinvestment Plan, the 401(k) Plan, the stock incentive plans for employees, and the non-employee directors stock plans.

During the three months ended March 31, 2018 and 2017, AWR paid quarterly dividends of approximately $9.4 million, or $0.255 per share, and $8.9 million, or $0.242 per share, respectively. During the three months ended March 31, 2018, GSWC paid dividends of $9.4 million to AWR. No dividends were paid by GSWC to AWR during the three months ended March 31, 2017.

Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block]



Basic:	For The Three Months Ended March 31,
(in thousands, except per share amounts)	2018		2017
Net income	$	10,782	$	12,701
Less: (a) Distributed earnings to common shareholders	9,362		8,854
Distributed earnings to participating securities	46		42
Undistributed earnings	1,374		3,805

(b) Undistributed earnings allocated to common shareholders	1,367		3,787
Undistributed earnings allocated to participating securities	7		18
Total income available to common shareholders, basic (a)+(b)	$	10,729	$	12,641

Weighted average Common Shares outstanding, basic	36,712		36,590
Basic earnings per Common Share	$	0.29	$	0.35