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SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT
 12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT
CONDENSED BALANCE SHEETS
 December 31,
(in thousands)20202019
Assets  
Cash and equivalents$441 $310 
Income taxes receivable72 — 
Intercompany note receivables32,819 185,094 
Total current assets33,332 185,404 
Investments in subsidiaries716,627 616,725 
Deferred taxes and other assets9,757 9,548 
Total assets$759,716 $811,677 
Liabilities and Capitalization  
Notes payable to bank$— $5,000 
Income taxes payable2,123 3,259 
Other liabilities272 274 
Total current liabilities2,395 8,533 
Notes payable to bank114,000 200,000 
Deferred taxes and other liabilities1,648 1,614 
Total other liabilities115,648 201,614 
Common shareholders’ equity641,673 601,530 
Total capitalization641,673 601,530 
Total liabilities and capitalization$759,716 $811,677 
 
The accompanying condensed notes are an integral part of these condensed financial statements.
CONDENSED STATEMENTS OF INCOME 
 For the Years Ended December 31,
(In thousands, except per share amounts)202020192018
Operating revenues and other income$— $— $— 
Operating expenses and other expenses90 314 305 
Income before equity in earnings of subsidiaries and income taxes(90)(314)(305)
Equity in earnings of subsidiaries86,307 83,947 63,651 
Income before income taxes86,217 83,633 63,346 
Income tax benefit(208)(709)(525)
Net income$86,425 $84,342 $63,871 
Weighted Average Number of Common Shares Outstanding36,880 36,814 36,733 
Basic Earnings Per Common Share$2.34 $2.28 $1.73 
Weighted Average Number of Diluted Common Shares Outstanding36,995 36,964 36,936 
Fully Diluted Earnings per Common Share$2.33 $2.28 $1.72 
Dividends Paid Per Common Share1.280$1.160 $1.060 
 
The accompanying condensed notes are an integral part of these condensed financial statements.
CONDENSED STATEMENTS OF CASH FLOWS
 
 For the Years Ended December 31,
(in thousands)202020192018
Cash Flows From Operating Activities$47,307 $40,459 $79,877 
Cash Flows From Investing Activities:   
Loans (made to)/repaid from, wholly-owned subsidiaries151,000 (107,500)(30,500)
  Increase in investment of subsidiary (60,000)— (47,500)
Net cash provided (used) in investing activities91,000 (107,500)(78,000)
Cash Flows From Financing Activities:   
Proceeds from stock option exercises30 519 546 
Net change in notes payable to banks(91,000)109,500 36,500 
Proceeds from note payable to GSWC(6,000)— — 
Repayment of note payable to GSWC6,000 — — 
Dividends paid(47,206)(42,702)(38,937)
Net cash (used) provided in financing activities(138,176)67,317 (1,891)
Change in cash and equivalents131 276 (14)
Cash and equivalents at beginning of period310 34 48 
Cash and equivalents at the end of period$441 $310 $34 
Basis of Presentation
The accompanying condensed financial statements of AWR (parent) should be read in conjunction with the consolidated financial statements and notes thereto of American States Water Company and subsidiaries (“Registrant”) included in Part II, Item 8 of this Form 10-K.  AWR’s (parent) significant accounting policies are consistent with those of Registrant and its wholly owned subsidiaries, Golden State Water Company (“GSWC”), Bear Valley Electric Service, Inc. ("BVESI") and American States Utility Services, Inc. ("ASUS"), except that all subsidiaries are accounted for as equity method investments. 
Related-Party Transactions:
As further discussed in Note 2 — Notes Payable to Banks, AWR (parent) currently has access to a $200.0 million revolving credit facility. AWR (parent) borrows under this facility and provides funds to GSWC and ASUS in support of their operations. Any amounts owed to AWR (parent) for borrowings under this facility are reflected as inter-company receivables on the condensed balance sheets.  The interest rate charged to the subsidiaries is sufficient to cover AWR (parent)’s interest cost under the credit facility.
In October 2020, AWR (parent) issued an interest bearing promissory note to GSWC, which expires in May 2023. Under the terms of the note, AWR (parent) may borrow from GSWC amounts up to $30 million for working capital purposes. AWR (parent) agrees to pay any unpaid principal amounts outstanding under this note, plus accrued interest. In November 2020, AWR (parent) borrowed $6 million from GSWC under the terms of the note, which was subsequently repaid in December. As of December 31, 2020, there were no amounts outstanding under this note.
AWR (parent) guarantees performance of ASUS's military privatization contracts and agrees to provide necessary resources, including financing, which are necessary to assure the complete and satisfactory performance of such contracts.
Note Payable to Banks
AWR currently has access to a $200.0 million credit facility expiring in May 2023 in order to provide funds to GSWC and ASUS in support of their operations on terms that are similar to that of the credit facility. During 2019 and 2020, AWR amended the credit facility to temporarily increase the borrowing capacity as high as $260.0 million in order to meet the operational needs of GSWC and ASUS. Following the issuance of GSWC’s long-term debt in July 2020, AWR reduced the aggregate borrowing capacity to $200.0 million pursuant to the terms of that credit facility agreement. At December 31, 2020, there was $134.2 million outstanding under the credit facility.  The aggregate effective amount that may be outstanding under letters of credit is $25.0 million.  AWR has obtained letters of credit, primarily for GSWC, in the aggregate amount of $455,000 at fees of 0.65%. Letters of credit outstanding reduce the amount that may be borrowed under the revolving credit facility. AWR is not required to maintain any compensating balances.
Loans may be obtained under this credit facility at the option of AWR and bear interest at rates based on credit ratings and Euro rate margins.  In June 2020, Standard and Poor’s Global Ratings (“S&P”) affirmed an A+ credit rating with a stable outlook on both AWR and GSWC. S&P’s debt ratings range from AAA (highest possible) to D (obligation is in default).
AWR’s (parent) borrowing activities (excluding letters of credit) for the years ended December 31, 2020 and 2019 were as follows:
 December 31,
(in thousands, except percent)20202019
Balance Outstanding at December 31,$114,000 $205,000 
Interest Rate at December 31,1.19 %2.44 %
Average Amount Outstanding160,495 $167,392 
Weighted Average Annual Interest Rate1.47 %2.88 %
Maximum Amount Outstanding$249,000 $205,500 
All of the letters of credit are issued pursuant to the revolving credit facility. The revolving credit facility contains restrictions on prepayments, disposition of property, mergers, liens and negative pledges, indebtedness and guaranty obligations, transactions with affiliates, minimum interest coverage requirements, a maximum debt to capitalization ratio and a minimum debt rating. Pursuant to the credit agreement, AWR must maintain a minimum interest coverage ratio of 3.25 times interest expense, a maximum total funded debt ratio of 0.65 to 1.00 and a minimum debt rating from Moody’s or S&P of Baa3 or BBB-, respectively. As of December 31, 2020, 2019 and 2018, AWR was in compliance with these covenants. As of December 31, 2020, AWR had an interest coverage ratio of 7.74 times interest expense, a debt ratio of 0.47 to 1.00 and a debt rating of A+ by S&P.
Income TaxesAWR (parent) receives a tax benefit for expenses incurred at the parent-company level.  AWR (parent) also recognizes the effect of AWR’s consolidated California unitary apportionment, which is beneficial or detrimental depending on a combination of the profitability of AWR’s consolidated non-California activities as well as the proportion of its consolidated California sales to total sales.Dividend from SubsidiariesCash dividends in the amount of $47.3 million, $42.7 million and $79.0 million were paid to AWR (parent) by its wholly owned subsidiaries during the years ended December 31, 2020, 2019 and 2018, respectively.