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Revenue Recognition
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 4: Revenue Recognition
Disaggregated Revenues
Presented in the table below are operating revenues disaggregated for the year ended December 31, 2025:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services: 
Residential$2,557 $— $2,557 
Commercial981 — 981 
Fire service189 — 189 
Industrial195 — 195 
Public and other311 — 311 
Total water services4,233 — 4,233 
Wastewater services: 
Residential287 — 287 
Commercial86 — 86 
Industrial10 — 10 
Public and other39 — 39 
Total wastewater services422 — 422 
Miscellaneous utility charges49 — 49 
Alternative revenue programs— 12 12 
Lease contract revenue— 7 7 
Total Regulated Businesses4,704 19 4,723 
Other417 — 417 
Total operating revenues$5,121 $19 $5,140 
(a)Includes revenues associated with alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP.
Presented in the table below are operating revenues disaggregated for the year ended December 31, 2024:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services: 
Residential$2,344 $5 $2,349 
Commercial881 4 885 
Fire service164 — 164 
Industrial182 2 184 
Public and other291 — 291 
Total water services3,862 11 3,873 
Wastewater services:
Residential243 2 245 
Commercial70 — 70 
Industrial12 — 12 
Public and other36 — 36 
Total wastewater services361 2 363 
Miscellaneous utility charges42 — 42 
Alternative revenue programs— 10 10 
Lease contract revenue— 8 8 
Total Regulated Businesses4,265 31 4,296 
Other388 — 388 
Total operating revenues$4,653 $31 $4,684 
(a)Includes revenues associated with provisional rates, alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP.
Presented in the table below are operating revenues disaggregated for the year ended December 31, 2023:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services: 
Residential$2,143 $— $2,143 
Commercial798 — 798 
Fire service158 — 158 
Industrial167 — 167 
Public and other274 — 274 
Total water services3,540 — 3,540 
Wastewater services:
Residential228 — 228 
Commercial62 — 62 
Industrial8 — 8 
Public and other29 — 29 
Total wastewater services327 — 327 
Miscellaneous utility charges35 — 35 
Alternative revenue programs— 10 10 
Lease contract revenue— 8 8 
Total Regulated Businesses3,902 18 3,920 
Other315 (1)314 
Total operating revenues$4,217 $17 $4,234 
(a)Includes revenues associated with alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP.
Contract Balances
Contract assets and contract liabilities are the result of timing differences between revenue recognition, billings and cash collections. In MSG, certain contracts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. Contract assets are recorded when billing occurs subsequent to revenue recognition and are reclassified to accounts receivable when billed and the right to consideration becomes unconditional. Contract liabilities are recorded when the Company receives advances from customers prior to satisfying contractual performance obligations, particularly for construction contracts, and are recognized as revenue when the associated performance obligations are satisfied.
Contract assets of $171 million, $84 million and $95 million are included in unbilled revenues on the Consolidated Balance Sheets as of December 31, 2025, 2024 and 2023, respectively. Also, contract assets of $5 million and $39 million are included in other long-term assets on the Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively, and there were no contract assets in other long-term assets on the Consolidated Balance Sheets as of December 31, 2023. There were $175 million of contract assets added during 2025, and $122 million of contract assets were transferred to accounts receivable during 2025. There were $114 million of contract assets added during 2024, and $86 million of contract assets were transferred to accounts receivable during 2024.
Contract liabilities of $19 million, $40 million and $63 million are included in other current liabilities on the Consolidated Balance Sheets as of December 31, 2025, 2024 and 2023, respectively. Also, contract liabilities of $19 million and $14 million are included in other long-term liabilities on the Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively, and there were no contract liabilities in other long-term liabilities on the Consolidated Balance Sheets as of December 31, 2023. There were $88 million of contract liabilities added during 2025, and $104 million of contract liabilities were recognized as revenue during 2025. There were $83 million of contract liabilities added during 2024, and $92 million of contract liabilities were recognized as revenue during 2024.
Remaining Performance Obligations
Remaining performance obligations (“RPOs”) represent revenues the Company expects to recognize in the future from contracts that are in progress. The Company enters into agreements for the provision of services to water and wastewater facilities for the U.S. military, municipalities and other customers. As of December 31, 2025, the Company’s O&M and capital improvement contracts have RPOs. Contracts with the U.S. government for work on military installations expire between 2051 and 2073 and have RPOs of $7.4 billion as of December 31, 2025, as measured by estimated remaining contract revenue. Such contracts are subject to customary termination provisions held by the U.S. government, prior to the agreed-upon contract expiration. Contracts with municipalities and commercial customers expire between 2031 and 2038 and have RPOs of $508 million as of December 31, 2025, as measured by estimated remaining contract revenue.