
	December 31,
(in thousands)	2021		2020
Assets

Cash and equivalents	$	51	$	441
Income taxes receivable	—		72
Intercompany note receivables	79,722		32,819
Total current assets	79,773		33,332

Investments in subsidiaries	774,751		716,627
Deferred taxes and other assets	9,620		9,757
Total assets	$	864,144	$	759,716

Liabilities and Capitalization


Income taxes payable	$	1,765	$	2,123
Other liabilities	309		272
Total current liabilities	2,074		2,395

Notes payable to bank	174,500		114,000
Deferred taxes and other liabilities	1,623		1,648
Total other liabilities	176,123		115,648

Common shareholders’ equity	685,947		641,673
Total capitalization	685,947		641,673

Total liabilities and capitalization	$	864,144	$	759,716


	For the Years Ended December 31,
(In thousands, except per share amounts)	2021		2020		2019
Operating revenues and other income	$	—	$	—	$	—
Operating expenses and other expenses	542		90		314
Income before equity in earnings of subsidiaries and income taxes	(542)		(90)		(314)

Equity in earnings of subsidiaries	94,808		86,307		83,947

Income before income taxes	94,266		86,217		83,633

Income tax benefit	(81)		(208)		(709)

Net income	$	94,347	$	86,425	$	84,342

Weighted Average Number of Common Shares Outstanding	36,921		36,880		36,814
Basic Earnings Per Common Share	$	2.55	$	2.34	$	2.28

Weighted Average Number of Diluted Common Shares Outstanding	37,010		36,995		36,964
Fully Diluted Earnings per Common Share	$	2.55	$	2.33	$	2.28

Dividends Paid Per Common Share	1.40		1.28		1.16


	For the Years Ended December 31,
(in thousands)	2021		2020		2019
Cash Flows From Operating Activities	$	36,799	$	47,307	$	40,459

Cash Flows From Investing Activities:
Loans (made to)/repaid from, wholly-owned subsidiaries	(46,000)		151,000		(107,500)
Increase in investment of subsidiary	—		(60,000)		—
Net cash (used) provided in investing activities	(46,000)		91,000		(107,500)

Cash Flows From Financing Activities:
Proceeds from stock option exercises	—		30		519
Net change in notes payable to banks	60,500		(91,000)		109,500
Proceeds from note payable to GSWC	(26,000)		(6,000)		—
Repayment of note payable to GSWC	26,000		6,000		—
Dividends paid	(51,689)		(47,206)		(42,702)
Net cash provided (used) in financing activities	8,811		(138,176)		67,317

Change in cash and equivalents	(390)		131		276
Cash and equivalents at beginning of period	441		310		34

Cash and equivalents at the end of period	$	51	$	441	$	310

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.

As further discussed in Note 2 — Notes Payable to Banks, AWR (parent) currently has access to a $200.0 million revolving credit facility, which expires in May 2023. 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. During 2021 and 2020, AWR borrowed and repaid a total of $26 million and $6 million, respectively, from GSWC under the terms of the note. As of December 31, 2021, 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.

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. At December 31, 2021, there was $174.5 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, for AWR and 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 LIBOR margins. In March 2021, Standard and Poor’s Global Ratings (“S&P”) affirmed an A+ credit rating for both AWR and GSWC. S&P also revised its rating outlook to negative from stable for both companies. S&P’s debt ratings range from AAA (highest possible) to D (obligation is in default).


	December 31,
(in thousands, except percent)	2021			2020
Balance Outstanding at December 31,	$	174,500		$	114,000
Interest Rate at December 31,	0.78		%	1.19		%
Average Amount Outstanding	139,926			160,495
Weighted Average Annual Interest Rate	0.91		%	1.47		%
Maximum Amount Outstanding	$	174,500		$	249,000

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, 2021, 2020 and 2019, AWR was in compliance with these covenants. As of December 31, 2021, AWR had an interest coverage ratio of 8.21 times interest expense, a debt ratio of 0.47 to 1.00 and a debt rating of A+ by S&P.