Business Segments

12 Months Ended

Dec. 31, 2012

Business Segments

Business Segments

Note 16 — Business Segments

AWR has three reportable segments, water, electric and contracted services, whereas GSWC has two 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.  The operating activities of CCWC have been included in discontinued operations as described in Note 19.  All activities of CCWC were located in the state of Arizona. GSWC is, and CCWC was, a rate-regulated utility.

Activities of ASUS and its subsidiaries are conducted in California, Georgia, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia.  Each of ASUS’s wholly-owned subsidiaries is regulated 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 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 its 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 plants are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash and exclude property installed by developers and conveyed to GSWC and through May 31, 2011 for CCWC.

	As Of And For The Year Ended December 31, 2012
	GSWC				ASUS		AWR			Consolidated
(dollars in thousands)	Water		Electric		Contracts		Parent			AWR
Operating revenues	$	305,898	$	37,033	$	123,977	$	—		$	466,908
Operating income (loss)	78,104		8,501		24,608		(119		)	111,094
Interest expense, net	19,783		1,533		179		(63		)	21,432
Utility Plant	871,756		41,381		4,654		—			917,791
Depreciation and amortization expense (1)	37,905		2,292		1,188		—			41,385
Income tax expense	24,231		2,269		9,437		8			35,945
Capital additions	62,500		4,331		1,273		—			68,104

	As Of And For The Year Ended December 31, 2011
	GSWC				CCWC			ASUS		AWR			Consolidated
(dollars in thousands)	Water		Electric		Water			Contracts		Parent			AWR
Operating revenues	$	300,450	$	36,275	$	—		$	83,188	$	—		$	419,913
Operating income (loss) (2)	77,017		6,661		(356		)	11,855		(73		)	95,104
Interest expense, net	20,990		1,501		—			372		(41		)	22,822
Utility Plant	852,264		39,681		—			4,555		—			896,500
Depreciation and amortization expense (1)	35,450		2,011		—			888		—			38,349
Income tax expense/(benefit)	24,151		1,820		(145		)	4,431		(181		)	30,076
Income from discontinued operations, net of tax (3)	—		—		1,612			—		2,237		(4)	3,849
Capital additions	73,991		4,447		—			1,843		—			80,281

	As Of And For The Year Ended December 31, 2010
	GSWC				CCWC			ASUS			AWR			Consolidated
(dollars in thousands)	Water		Electric		Water			Contracts			Parent			AWR
Operating revenues	$	291,617	$	35,799	$	—		$	72,360		$	—		$	399,776
Operating income (loss) (2)	58,121		5,680		(1,103		)	11,487			(366		)	73,819
Interest expense, net	17,803		1,498		—			(224		)	153			19,230
Utility Plant	813,942		37,425		—			3,589			—			854,956
Depreciation and amortization expense (1)	34,360		2,240		—			805			—			37,405
Income tax expense/(benefit)	17,042		2,041		(449		)	4,535			(134		)	23,035
Income (loss) from discontinued operations, net of tax (3)	—		—		2,532			—			(426		)(4)	2,106
Capital additions	74,264		2,700		688			1,398			—			79,050

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

	December 31,
	2012		2011		2010
Total utility plant	$	917,791	$	896,500	$	854,956
Other assets	363,152		341,862		337,079
Total consolidated assets	$	1,280,943	$	1,238,362	$	1,192,035

(1) Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $1.8 million, $2.5 million and $2.2 million for the years ended December 31, 2012, 2011 and 2010, respectively.

(2) Operating income (loss) includes CCWC’s allocated corporate overhead costs that are now primarily at GSWC.

(3) In accordance with the accounting guidance relating to assets held for sale, Registrant did not record depreciation expense for CCWC in 2011.

(4) Included in discontinued operation for the years ended December 31, 2011 and 2010 are direct transaction costs of $449,000 ($217,000 after tax) and $708,000 ($426,000 after tax), respectively, for legal and consulting services in connection with the sale of CCWC.