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v3.19.1

Leases | 3 Months Ended
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Mar. 31, 2019
Leases [Abstract] |
Lessee, Operating Leases [Text Block] | Leases The adoption of the new lease guidance did not have a material impact on Registrant's results of operations or liquidity, but resulted in the recognition of operating lease liabilities and operating lease right-of-use assets on its balance sheets. Right-of-use ("ROU") assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. As of March 31, 2019, Registrant has right-of-use assets of $6.3 million, short-term operating lease liabilities of $2.0 million and long-term operating lease liabilities of $4.4 million. Significant assumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to Registrant over terms similar to the lease terms. Registrant’s leases consist of real estate and equipment leases, and are mostly GSWC's. Most of Registrant's leases require fixed lease payments. Some real estate leases have escalation payments which depend on an index. Variable lease costs were not material. Lease terms used to measure the lease liability include options to extend the lease if the option is reasonably certain to be exercised. Lease and non-lease components were combined to measure lease liabilities. Registrant also has real estate leases that have not yet commenced as of March 31, 2019. These leases will create additional operating right-of-use assets and operating lease liabilities of approximately $5.5 million upon possession of the office spaces later in 2019. GSWC's long-term debt includes $28 million of 9.56% private placement notes, which require GSWC to maintain a total indebtedness to capitalization ratio of less than 0.6667-to-1. The indebtedness, as defined in the note agreement, includes any lease liabilities required to be recorded under GAAP. As of March 31, 2019, GSWC had a total indebtedness (including GSWC's lease liabilities) to capitalization ratio of 0.4449-to-1. None of the other covenants or restrictions contained in Registrant's long-term debt agreements were affected by the adoption of the new lease standard. Registrant's supplemental lease information for the three months ended March 31, 2019 is as follows (in thousands, except for weighted average data):
| Three Months Ended March 31, 2019
Operating lease costs | $ | 798 |
Short-term lease costs | $ | 74 |
Weighted average remaining lease term (in years) | 6.63 |
Weighted-average discount rate | 3.0 | %
Non-cash transactions |
Lease liabilities arising from obtaining right-of-use assets | $ | 7,968 |
During the three months ended March 31, 2019 and 2018, Registrant’s consolidated rent expense was approximately $663,000 and $559,000, respectively. Registrant’s future minimum payments under long-term non-cancelable operating leases are as follows (in thousands):
| March 31, 2019 |  | December 31, 2018
2019 (April through December 2019 as of March 31, 2019) | $ | 1,809 |  |  | $ | 2,818 |
2020 | 1,949 |  |  | 2,530 |
2021 | 1,455 |  |  | 1,497 |
2022 | 1,065 |  |  | 1,007 |
2023 | 575 |  |  | 546 |
Thereafter | 629 |  |  | 605 |
Total lease payments | 7,482 |  |  | $ | 9,003 |
Less: imputed interest | 1,016 |  |  |
Total lease obligations | 6,466 |  |  |
Less: current obligations | 2,027 |  |  |
Long-term lease obligations | $ | 4,439 |  |  |
The decrease in future minimum lease payments from December 31, 2018 to March 31, 2019 was largely due to the early termination of one of Registrant's real estate leases. The early termination did not have a material impact on Registrant's financial statements as of and during the three months ended March 31, 2019. There is no material difference between the consolidated operations of AWR and the operations of GSWC in regard to the future minimum payments under long-term cancelable operating leases.

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- References No definition available. + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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