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 located within California. Activities of ASUS and its subsidiaries are conducted in California, Florida, Georgia, Kansas, 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 September 30, 2018
	GSWC							AWR			Consolidated
(dollars in thousands)	Water		Electric		ASUS			Parent			AWR
Operating revenues	$	87,689	$	7,875	$	28,618		$	—		$	124,182
Operating income (loss)	26,710		830		6,437			(2		)	33,975
Interest expense, net	5,039		291		(118		)	95			5,307
Utility plant	1,187,786		61,404		13,725			—			1,262,915
Depreciation and amortization expense (1)	9,058		565		495			—			10,118
Income tax expense (benefit)	5,247		167		1,606			(81		)	6,939
Capital additions	24,590		1,140		2,816			—			28,546



	As Of And For The Three Months Ended September 30, 2017
	GSWC						AWR			Consolidated
(dollars in thousands)	Water		Electric		ASUS		Parent			AWR
Operating revenues	$	91,919	$	7,994	$	24,505	$	—		$	124,418
Operating income (loss) (2)	31,408		1,578		5,551		(3		)	38,534
Interest expense, net	4,974		346		58		76			5,454
Utility plant	1,117,674		57,669		6,273		—			1,181,616
Depreciation and amortization expense (1)	8,972		537		345		—			9,854
Income tax expense (benefit)	10,544		269		1,944		(249		)	12,508
Capital additions	30,536		559		905		—			32,000



	As Of And For The Nine Months Ended September 30, 2018
	GSWC							AWR			Consolidated
(dollars in thousands)	Water		Electric		ASUS			Parent			AWR
Operating revenues	$	228,834	$	25,548	$	71,429		$	—		$	325,811
Operating income (loss)	62,012		4,470		11,759			(7		)	78,234
Interest expense, net	15,095		1,014		(255		)	252			16,106
Utility plant	1,187,786		61,404		13,725			—			1,262,915
Depreciation and amortization expense (1)	26,693		1,694		1,407			—			29,794
Income tax expense (benefit)	10,805		938		2,865			(718		)	13,890
Capital additions	75,976		3,264		8,088			—			87,328



	As Of And For The Nine Months Ended September 30, 2017
	GSWC						AWR			Consolidated
(dollars in thousands)	Water		Electric		ASUS		Parent			AWR
Operating revenues	$	239,057	$	26,108	$	71,258	$	—		$	336,423
Operating income (loss) (2)	84,200		5,891		15,055		(10		)	105,136
Interest expense, net	14,924		1,071		214		197			16,406
Utility plant	1,117,674		57,669		6,273		—			1,181,616
Depreciation and amortization expense (1)	26,731		1,610		843		—			29,184
Income tax expense (benefit)	27,739		1,496		5,152		(717		)	33,670
Capital additions	74,113		2,260		1,523		—			77,896

(1) Depreciation computed on GSWC’s transportation equipment is recorded in other operating expenses and totaled $58,000 and $61,000 for the three months ended September 30, 2018 and 2017, respectively, and $179,000 and $181,000 for the nine months ended September 30, 2018 and 2017, respectively.

(2) Adjusted to conform to current-year presentation pursuant to the adoption of ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.

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



	September 30,
	2018		2017
Net property, plant and equipment	$	1,262,915	$	1,181,616
Other assets	202,127		304,870
Total consolidated assets	$	1,465,042	$	1,486,486