Business Segments:

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

All activities of GSWC, a rate-regulated utility, are geographically located within California. Activities of ASUS and its subsidiaries are conducted in California, Georgia, Florida, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia. Each of ASUS’s wholly owned 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 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 plant amounts are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash, and exclude U.S. government- and third-party contractor-funded capital expenditures for ASUS and property installed by developers and conveyed to GSWC.



	As Of And For The Three Months Ended June 30, 2017
	GSWC						AWR			Consolidated
(dollars in thousands)	Water		Electric		ASUS		Parent			AWR
Operating revenues	$	80,734	$	7,612	$	24,849	$	—		$	113,195
Operating income (loss)	33,552		1,527		6,740		(3		)	41,816
Interest expense, net	4,805		350		82		69			5,306
Utility plant	1,093,104		56,371		5,728		—			1,155,203
Depreciation and amortization expense (1)	8,858		536		253		—			9,647
Income tax expense (benefit)	11,710		439		2,347		(189		)	14,307
Capital additions	20,593		978		331		—			21,902



	As Of And For The Three Months Ended June 30, 2016
	GSWC						AWR			Consolidated
(dollars in thousands)	Water		Electric		ASUS		Parent			AWR
Operating revenues	$	81,058	$	7,701	$	23,195	$	—		$	111,954
Operating income (loss)	26,452		1,105		4,219		(2		)	31,774
Interest expense, net	5,052		344		10		7			5,413
Utility plant	1,048,127		53,734		5,276		—			1,107,137
Depreciation and amortization expense (1)	8,840		507		254		—			9,601
Income tax expense (benefit)	8,367		355		1,505		(171		)	10,056
Capital additions	32,393		2,862		625		—			35,880



	As Of And For The Six Months Ended June 30, 2017
	GSWC						AWR			Consolidated
(dollars in thousands)	Water		Electric		ASUS		Parent			AWR
Operating revenues	$	147,138	$	18,114	$	46,753	$	—		$	212,005
Operating income (loss)	52,816		4,340		9,405		(7		)	66,554
Interest expense, net	9,950		725		156		121			10,952
Utility plant	1,093,104		56,371		5,728		—			1,155,203
Depreciation and amortization expense (1)	17,759		1,073		498		—			19,330
Income tax expense (benefit)	17,195		1,227		3,208		(468		)	21,162
Capital additions	43,577		1,701		618		—			45,896



	As Of And For The Six Months Ended June 30, 2016
	GSWC						AWR			Consolidated
(dollars in thousands)	Water		Electric		ASUS		Parent			AWR
Operating revenues	$	147,370	$	18,274	$	39,837	$	—		$	205,481
Operating income (loss)	43,860		3,340		5,811		(4		)	53,007
Interest expense, net	10,127		669		17		51			10,864
Utility plant	1,048,127		53,734		5,276		—			1,107,137
Depreciation and amortization expense (1)	17,863		1,014		515		—			19,392
Income tax expense (benefit)	12,953		1,209		2,078		(371		)	15,869
Capital additions	60,534		3,682		1,118		—			65,334

(1) Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $59,000 and $192,000 for the three months ended June 30, 2017 and 2016, respectively, and $120,000 and $367,000 for the six months ended June 30, 2017 and 2016, respectively.

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



	June 30,
	2017		2016
Total utility plant	$	1,155,203	$	1,107,137
Other assets	307,450		299,162
Total consolidated assets	$	1,462,653	$	1,406,299