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SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT | 12 Months Ended
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Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract] |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT | CONDENSED BALANCE SHEETS
|  | December 31,
(in thousands) |  | 2022 |  | 2021
Assets |  |  |  |
Cash and equivalents |  | $ | 93 |  |  | $ | 51 |
Income taxes receivable |  | 20 |  |  | — |
Intercompany note receivables |  | 159,582 |  |  | 79,722 |
Total current assets |  | 159,695 |  |  | 79,773 |
Investments in subsidiaries |  | 799,802 |  |  | 774,751 |
Deferred taxes and other assets |  | 9,891 |  |  | 9,620 |
Total assets |  | $ | 969,388 |  |  | $ | 864,144 |
Liabilities and Capitalization |  |  |  |
Notes payable to bank |  | $ | 255,500 |  |  | $ | — |
Income taxes payable |  | 2,158 |  |  | 1,765 |
Other liabilities |  | 454 |  |  | 309 |
Total current liabilities |  | 258,112 |  |  | 2,074 |
Notes payable to bank |  | — |  |  | 174,500 |
Deferred taxes and other liabilities |  | 1,727 |  |  | 1,623 |
Total other liabilities |  | 1,727 |  |  | 176,123 |
Common shareholders’ equity |  | 709,549 |  |  | 685,947 |
Total capitalization |  | 709,549 |  |  | 685,947 |
Total liabilities and capitalization |  | $ | 969,388 |  |  | $ | 864,144 |
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) |  | 2022 |  | 2021 |  | 2020
Operating revenues and other income |  | $ | — |  |  | $ | — |  |  | $ | — |
Operating expenses and other expenses |  | 2,093 |  |  | 542 |  |  | 90 |
Loss before equity in earnings of subsidiaries and income taxes |  | (2,093) |  |  | (542) |  |  | (90) |
Equity in earnings of subsidiaries |  | 79,892 |  |  | 94,808 |  |  | 86,307 |
Income before income taxes |  | 77,799 |  |  | 94,266 |  |  | 86,217 |
Income tax benefit |  | (597) |  |  | (81) |  |  | (208) |
Net income |  | $ | 78,396 |  |  | $ | 94,347 |  |  | $ | 86,425 |
Weighted Average Number of Common Shares Outstanding |  | 36,955 |  |  | 36,921 |  |  | 36,880 |
Basic Earnings Per Common Share |  | $ | 2.12 |  |  | $ | 2.55 |  |  | $ | 2.34 |
Weighted Average Number of Diluted Common Shares Outstanding |  | 37,039 |  |  | 37,010 |  |  | 36,995 |
Fully Diluted Earnings per Common Share |  | $ | 2.11 |  |  | $ | 2.55 |  |  | $ | 2.33 |
Dividends Paid Per Common Share |  | $ | 1.525 |  |  | $ | 1.40 |  |  | $ | 1.28 |
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) |  | 2022 |  | 2021 |  | 2020
Cash Flows From Operating Activities |  | $ | 56,398 |  |  | $ | 36,799 |  |  | $ | 47,307 |
Cash Flows From Investing Activities: |  |  |  |  |  |
Loans (made to)/repaid from, wholly-owned subsidiaries |  | (81,000) |  |  | (46,000) |  |  | 151,000 |
Increase in investment of subsidiary |  | — |  |  | — |  |  | (60,000) |
Net cash (used in) provided by investing activities |  | (81,000) |  |  | (46,000) |  |  | 91,000 |
Cash Flows From Financing Activities: |  |  |  |  |  |
Proceeds from stock option exercises |  | — |  |  | — |  |  | 30 |
Net change in notes payable to banks |  | 81,000 |  |  | 60,500 |  |  | (91,000) |
Proceeds from note payable to GSWC |  | — |  |  | (26,000) |  |  | (6,000) |
Repayment of note payable to GSWC |  | — |  |  | 26,000 |  |  | 6,000 |
Dividends paid |  | (56,356) |  |  | (51,689) |  |  | (47,206) |
Net cash provided by (used in) financing activities |  | 24,644 |  |  | 8,811 |  |  | (138,176) |
Change in cash and equivalents |  | 42 |  |  | (390) |  |  | 131 |
Cash and equivalents at beginning of period |  | 51 |  |  | 441 |  |  | 310 |
Cash and equivalents at the end of period |  | $ | 93 |  |  | $ | 51 |  |  | $ | 441 |
The accompanying condensed notes are an integral part of these condensed financial statements. Note 1 — 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 $280.0 million revolving credit facility that 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 intercompany 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 $30.0 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 $26.0 million and $6.0 million, respectively, from GSWC under the terms of the note. There were no borrowings or repayments during 2022. As of December 31, 2021 and 2022, there were no amounts outstanding under this note. In January 2023, the Board of Directors approved the issuance of one GSWC Common Share to AWR for $10.0 million. Proceeds from the stock issuance was used to pay down its intercompany borrowings owed to AWR. 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 2 — Note Payable to Banks On April 22, 2022, AWR’s credit facility was amended to increase the borrowing capacity from $200.0 million to $280.0 million. The amendment also changed the benchmark interest rate from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”). The change in benchmark rates has not had a material impact on its financing costs. 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 $639,000 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. Given that AWR’s credit agreement will expire in May 2023, the outstanding borrowings under the credit facility of $255.5 million as of December 31, 2022 have been classified as a current liability on AWR’s Consolidated Balance Sheet, thus creating a negative working-capital condition for AWR of $245.2 million. Management plans to either renew and extend AWR’s credit facility or to enter into a new credit facility prior to its expiration date, and is confident, given AWR's history in obtaining revolving credit facilities to meet its working-capital needs, that AWR will be able to do so with the needed borrowing capacities required to run its operations. Management believes that execution of its plan is probable based on Registrant’s ability to generate consistent cash flows, its A+ credit ratings, its relationships with lenders, and its history of successfully raising debt necessary to fund its operations. As of March 1, 2023, AWR does not have sufficient liquidity or capital resources to repay its credit facility without, extending its existing credit facility, entering into a new credit facility, or issuing new debt or equity. Loans may be obtained under this credit facility at the option of AWR and bear interest at rates based on credit ratings and SOFR margins. In June 2022, Standard and Poor’s Global Ratings (“S&P”) affirmed an A+ credit rating. In March 2021, S&P affirmed its negative outlook for AWR. 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, 2022 and 2021 were as follows:
|  | December 31,
(in thousands, except percent) |  | 2022 |  | 2021
Balance Outstanding at December 31, |  | $ | 255,500 |  |  | $ | 174,500 |
Interest Rate at December 31, |  | 5.07 | % |  | 0.78 | %
Average Amount Outstanding |  | 213,758 |  |  | 139,926 |
Weighted Average Annual Interest Rate |  | 2.56 | % |  | 0.91 | %
Maximum Amount Outstanding |  | $ | 255,500 |  |  | $ | 174,500 |
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, 2022, 2021 and 2020, AWR was in compliance with these covenants. As of December 31, 2022, AWR had an interest coverage ratio of 6.32 times interest expense, a debt ratio of 0.51 to 1.00 and a debt rating of A+ by S&P. Note 3 — Income Taxes AWR (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. Note 4 — Dividend from Subsidiaries Cash dividends in the amount of $56.4 million, $38.3 million and $47.3 million were paid to AWR (parent) by its wholly owned subsidiaries during the years ended December 31, 2022, 2021 and 2020, respectively.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -URI http://asc.fasb.org/extlink&oid=120391182&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=123454820&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690 + Details
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