Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2012

Taxes on Income

Schedule of significant components of the deferred tax assets and liabilities from continuing operations

	AWR						GSWC
	December 31,						December 31,
(dollars in thousands)	2012			2011			2012			2011
Deferred tax assets:
Regulatory-liability-related: ITC and excess deferred taxes	$	1,649		$	1,699		$	1,649		$	1,699
Regulatory-liability-related: California Corp Franchise Tax	3,690			3,272			3,690			3,272
Other property-related	—			6,612			—			6,605
Other nonproperty-related	2,609			1,157			2,151			336
Balancing and memorandum accounts	—			2,632			—			2,632
Contributions and advances	9,443			12,068			9,443			12,068
	$	17,391		$	27,440		$	16,933		$	26,612
Deferred tax liabilities:
Fixed assets	$	(121,802	)	$	(117,681	)	$	(121,881	)	$	(117,763	)
Regulatory-asset-related: depreciation and other	(21,754		)	(22,003		)	(21,754		)	(22,003		)
Other property-related	(152		)	—			(151		)	—
Balancing and memorandum accounts	(1,020		)	—			(1,020		)	—
Deferred charges	(6,632		)	(7,164		)	(6,632		)	(7,164		)
	(151,360		)	(146,848		)	(151,438		)	(146,930		)
Accumulated deferred income taxes - net	$	(133,969	)	$	(119,408	)	$	(134,505	)	$	(120,318	)

Schedule of current and deferred components of income tax expense from continuing operations

	AWR
	Year Ended December 31,
(dollars in thousands)	2012		2011			2010
Current
Federal	$	15,585	$	9,107		$	10,785
State	5,273		7,108			6,110
Total current tax expense	$	20,858	$	16,215		$	16,895
Deferred
Federal	$	13,088	$	15,189		$	7,465
State	1,999		(1,328		)	(1,325		)
Total deferred tax expense	15,087		13,861			6,140
Total income tax expense from continuing operations	$	35,945	$	30,076		$	23,035

	GSWC
	Year Ended December 31,
(dollars in thousands)	2012		2011			2010
Current
Federal	$	7,957	$	5,246		$	6,543
State	3,830		6,920			5,852
Total current tax expense	$	11,787	$	12,166		$	12,395
Deferred
Federal	$	12,670	$	15,118		$	8,366
State	2,043		(1,313		)	(1,678		)
Total deferred tax expense	14,713		13,805			6,688
Total income tax expense	$	26,500	$	25,971		$	19,083

Schedule of reconciliations of the effective tax rates to the federal statutory rate

	AWR
	Year Ended December 31,
(dollars in thousands, except percent)	2012			2011			2010
Federal taxes on pretax income at statutory rate	$	31,533		$	25,230		$	18,944
Increase (decrease) in taxes resulting from:
State income tax, net of federal benefit	4,957			3,781			3,657
Flow-through on fixed assets	636			1,026			525
Flow-through on pension costs	10			254			(567		)
Investment tax credit	(91		)	(91		)	(91		)
Other – net	(1,100		)	(124		)	567
Total income tax expense from continuing operations	$	35,945		$	30,076		$	23,035
Pretax income from continuing operations	$	90,093		$	72,086		$	54,126
Effective income tax rate	39.9		%	41.7		%	42.6		%

	GSWC Year Ended December 31,
(dollars in thousands, except percent)	2012			2011			2010
Federal taxes on pretax income at statutory rate	$	23,002		$	21,278		$	15,468
Increase (decrease) in taxes resulting from:
State income tax, net of federal benefit	4,048			3,707			3,282
Flow-through on fixed assets	636			1,026			525
Flow-through on pension costs	10			254			(567		)
Investment tax credit	(91		)	(91		)	(91		)
Other – net	(1,105		)	(203		)	466
Total income tax expense	$	26,500		$	25,971		$	19,083
Pretax income	$	65,720		$	60,793		$	44,193
Effective income tax rate	40.3		%	42.7		%	43.2		%

Schedule of reconciliation of unrecognized tax benefits

	2012				2011				2010
(dollars in thousands)	AWR		GSWC		AWR		GSWC		AWR			GSWC
Unrecognized tax benefits at beginning of period	$	—	$	—	$	—	$	—	$	4,110		$	4,110
Increases as a result of tax positions taken prior to the period	—		—		—		—		—			—
Decreases as a result of tax positions taken prior to the period	—		—		—		—		(4,110		)	(4,110		)
Increases as a result of tax positions taken during the period	—		—		—		—		—			—
Decreases as a result of tax positions taken during the period	—		—		—		—		—			—
Decreases relating to settlements with taxing authorities	—		—		—		—		—			—
Reductions as a result of lapses of statute-of-limitation periods	—		—		—		—		—			—
Unrecognized tax benefits at end of period	$	—	$	—	$	—	$	—	$	—		$	—