XML 38 R26.htm IDEA: XBRL DOCUMENT
v3.24.3

BASIS OF PRESENTATION (Policies) | 9 Months Ended
--- | ---
Sep. 30, 2024
BASIS OF PRESENTATION [Abstract] |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, for Form 10-Q. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information provided not misleading. Accordingly, these condensed consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes in the Company’s annual report on Form 10-K for fiscal year 2023 as filed with the SEC on March 18, 2024. The condensed consolidated financial statements include the accounts of Artesian Resources Corporation and its wholly owned subsidiaries, including its principal operating company, Artesian Water. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments (unless otherwise noted) necessary to present fairly the Company’s balance sheet position as of September 30, 2024, the results of its operations for the three and nine-month periods ended September 30, 2024 and September 30, 2023, its cash flows for the nine-month periods ended September 30, 2024 and September 30, 2023 and the changes in stockholders’ equity for the three and nine-month periods ended September 30, 2024 and September 30, 2023. The December 31, 2023 Condensed Consolidated Balance Sheet was derived from the Company’s December 31, 2023 audited consolidated financial statements but does not include all disclosures and notes normally provided in annual financial statements. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year or for future periods.
Reclassification | Reclassification Certain accounts in the prior year financial statements have been reclassified for comparative purposes to conform with the presentation in the current year financial statements. These reclassifications had no effect on net income or stockholders' equity.
Regulated Utility Accounting | Regulated Utility Accounting The accounting records of Artesian Water, Artesian Wastewater and TESI, are maintained in accordance with the uniform system of accounts as prescribed by the Delaware Public Service Commission, or the DEPSC. The accounting records of Artesian Water Pennsylvania are maintained in accordance with the uniform system of accounts as prescribed by the Pennsylvania Public Utility Commission, or the PAPUC. The accounting records of Artesian Water Maryland and Artesian Wastewater Maryland are maintained in accordance with the uniform system of accounts as prescribed by the Maryland Public Service Commission, or the MDPSC. All these subsidiaries follow the provisions of Financial Accounting Standards Board, or FASB, ASC Topic 980, which provides guidance for companies in regulated industries. These regulated subsidiaries account for the majority of our operating revenue. See Note 17 - Business Segment Information to our Condensed Consolidated Financial Statements for a full description of our segment information.
Use of Estimates | Use of Estimates The condensed consolidated financial statements were prepared in conformity with generally accepted accounting principles in the U.S., which require management to make certain estimates and assumptions regarding the reported amounts of assets and liabilities including unbilled revenues, credit losses and reserves for bad debt, regulatory asset recovery, lease agreements, goodwill and contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from management's estimates.
Utility Plant | Utility Plant Utility plant is stated at original cost. Cost includes direct labor, materials, AFUDC (see description below) and indirect charges for such capitalized items as transportation, supervision, pension, medical, and other fringe benefits related to employees engaged in construction activities. When depreciable units of utility plant are retired, the historical costs of plant retired is charged to accumulated depreciation. Any cost associated with retirement, less any salvage value or proceeds received, is charged to the regulated retirement liability. Maintenance, repairs, and replacement of minor items of utility plant are charged to expense as incurred. Allowance for Funds Used during Construction, or AFUDC, is a non-cash credit to income with a corresponding charge to utility plant that represents the cost of borrowed funds and a return on equity funds devoted to plant under construction.
Utility plant comprises: |  |  |  |  |  |  |  |  |  |  |  |
In thousands |  |  |  |  |  |  |  |  |  |  |  |
|  | Estimated Useful Life (In Years) |  |  |  |  |  | Estimated Useful Life (In Years) |  |  |  |
|  | Effective June 12, 2024 |  |  | September 30, 2024 |  |  |  |  |  | December 31, 2023 |
Utility plant at original cost |  |  |  |  |  |  |  |  |  |  |  |
Utility plant in service-Water |  |  |  |  |  |  |  |  |  |  |  |
Intangible plant |  |  | — |  |  | $ | 140 |  |  |  | — |  |  | $ | 140 |
Source of supply plant |  |  | 45-85 |  |  |  | 30,214 |  |  |  | 45-85 |  |  |  | 29,960 |
Pumping and water treatment plant |  |  | 15-64 |  |  |  | 130,000 |  |  |  | 8-62 |  |  |  | 130,337 |
Transmission and distribution plant |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mains |  |  | 73-81 |  |  |  | 375,731 |  |  |  | 81 |  |  |  | 370,977 |
Services |  |  | 39-58 |  |  |  | 62,471 |  |  |  | 39 |  |  |  | 60,818 |
Storage tanks |  |  | 70-76 |  |  |  | 39,704 |  |  |  | 76 |  |  |  | 40,933 |
Meters |  |  | 16-26 |  |  |  | 30,224 |  |  |  | 26 |  |  |  | 30,318 |
Hydrants |  |  | 60-68 |  |  |  | 19,520 |  |  |  | 60 |  |  |  | 18,980 |
General plant |  |  | 5-81 |  |  |  | 58,204 |  |  |  | 5-31 |  |  |  | 67,317 |
Utility plant in service-Wastewater |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Intangible plant |  |  | — |  |  |  | 116 |  |  |  | — |  |  |  | 116 |
Treatment and disposal plant |  |  | 20-81 |  |  |  | 70,055 |  |  |  | 20-81 |  |  |  | 67,789 |
Collection mains & lift stations |  |  | 81 |  |  |  | 56,070 |  |  |  | 81 |  |  |  | 51,539 |
General plant |  |  | 5-31 |  |  |  | 2,608 |  |  |  | 5-31 |  |  |  | 2,478 |
Property held for future use |  |  | — |  |  |  | 3,742 |  |  |  | — |  |  |  | 4,028 |
Construction work in progress |  |  | — |  |  |  | 43,992 |  |  |  | — |  |  |  | 23,724 |
|  |  |  |  |  |  | 922,791 |  |  |  |  |  |  |  | 899,454 |
Less – accumulated depreciation |  |  |  |  |  |  | 188,567 |  |  |  |  |  |  |  | 185,170 |
|  |  |  |  |  | $ | 734,224 |  |  |  |  |  |  | $ | 714,284 |
Depreciation and Amortization | Depreciation and Amortization For financial reporting purposes, depreciation is recorded using the straight-line method at rates based on estimated economic useful lives, which range from 5 to 85 years. Composite depreciation rates for water utility plant were 1.92% and 2.13% for September 30, 2024 and December 31, 2023, respectively. In a rate order issued by the DEPSC, the Company was directed effective June 12, 2024, to begin using revised depreciation rates for utility plant in Artesian Water, which are based on the estimated useful life years noted in the table above. Artesian Water offsets depreciation recorded on utility plant by depreciation on utility property funded by Contributions in Aid of Construction, or CIAC, and Advances for Construction, or Advances. This reduction in depreciation expense is also netted against outstanding CIAC and Advances on the Condensed Consolidated Balance Sheet. Certain other deferred assets are amortized using the straight-line method over applicable lives, which range from 20 to 24 years.

X
- Definition Disclosure of accounting policy for regulated utility accounting. + References No definition available. + Details
Name: | artna_RegulatedUtilityAccountingPolicyTextBlock
Namespace Prefix: | artna_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of accounting policy for basis of accounting, or basis of presentation, used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). + References No definition available. + Details
Name: | us-gaap_BasisOfAccountingPolicyPolicyTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of accounting policy for depreciation, depletion, and amortization of property and equipment costs, including methods used and estimated useful lives and how impairment of such assets is assessed and recognized. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147483426/235-10-50-4 + Details
Name: | us-gaap_DepreciationDepletionAndAmortizationPolicyTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of accounting policy for reclassification affecting comparability of financial statement. Excludes amendment to accounting standards, other change in accounting principle, and correction of error. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 205 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483504/205-10-50-1 + Details
Name: | us-gaap_PriorPeriodReclassificationAdjustmentDescription
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of accounting policy for public utilities. Examples include a discussion about the scope criteria and appropriateness for and extent of the application of generally accepted accounting principles related to accounting for the effects of certain types of regulation (may include identification of specific business units). Other examples of the disclosures may include: descriptions of the form and economic effects of regulation (for example, but not limited to, recording of regulatory assets and liabilities to the rate setting process); statement about periodic assessments of periodic assessments of generally accepted accounting principles related to accounting for the effects of certain types of regulation; information regarding amortization of and return on regulatory assets and liabilities, including the remaining amounts and recovery or settlement periods; accounting for changes to recovery estimates; AFUDC, plant abandonment's and plant disallowances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 05 -Paragraph 1 -SubTopic 10 -Topic 980 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482115/980-10-05-1 + Details
Name: | us-gaap_PublicUtilitiesPolicyTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of accounting policy for the use of estimates in the preparation of financial statements in conformity with generally accepted accounting principles. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482861/275-10-50-9 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482861/275-10-50-4 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b) -SubTopic 10 -Topic 275 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482861/275-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (c) -SubTopic 10 -Topic 275 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482861/275-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Section 50 -Paragraph 11 -SubTopic 10 -Topic 275 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482861/275-10-50-11 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Section 50 -Paragraph 12 -SubTopic 10 -Topic 275 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482861/275-10-50-12 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482861/275-10-50-8 + Details
Name: | us-gaap_UseOfEstimates
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration