XML 34 R23.htm IDEA: XBRL DOCUMENT v3.25.3
BUSINESS SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2025
BUSINESS SEGMENT INFORMATION [Abstract]  
BUSINESS SEGMENT INFORMATION
NOTE 16 - BUSINESS SEGMENT INFORMATION
 
The Company’s operating segments are comprised of its businesses which generate revenues and incur expenses, for which separate operational financial information is available and is regularly evaluated by management for the purpose of making operating decisions, assessing performance, and allocating resources.  The Company operates its businesses primarily through one reportable segment, the Regulated Utility segment.  The Regulated Utility segment is the largest component of the Company’s business and includes an aggregation of our five regulated utility subsidiaries that are in the business of providing regulated water and wastewater services on the Delmarva Peninsula.  Our regulated water utility services include treating, distributing, and selling water to residential, commercial, industrial, governmental, municipal and utility customers throughout the State of Delaware and in Cecil County, Maryland and to a residential community in Chester County, Pennsylvania.  Our regulated wastewater utility services include the treatment and disposal of wastewater for customers in Sussex County, Delaware.  The Company is subject to regulations as to its rates, services, and other matters by the states of Delaware, Maryland and Pennsylvania with respect to utility service within these states.  
 
The Chief Operating Decision Maker, or CODM, is the Executive Committee led by the Chief Executive Officer and includes the Chief Financial Officer.  The CODM uses operating income as its measure of profit to assess the performance of each segment. This profit measure excludes the financing component and allows management to focus on controllable expenses, to allocate resources during the annual budgeting process and to monitor budget versus actual results on a monthly basis.
 
The accounting policies of the operating segments are the same as those described in Note 2 – Basis of Presentation.  The measurement of depreciation, interest, and capital expenditures are predominately related to our Regulated Utility segment.  These amounts in our non-utility business are negligible and account for approximately less than 1% of condensed consolidated amounts as of September 30, 2025 and September 30, 2024.
 
In thousands
Three Months Ended September 30,
 20252024
  Regulated Utility Total Regulated Utility Total
Regulated Utility Revenues$28,617 $28,617 $27,450 $27,450 
       
Reconciliation of revenue      
Other revenues  1,938 (a)   1,751 (a)
Inter-segment elimination  (64)     (59)
Consolidated revenues $30,491    $29,142
       
Less: (b)      
Payroll and Benefits (c)  6,873  6,160  
Supply and Delivery (d) 4,066  3,640  
Administrative (e) 2,557  2,384  
Depreciation and Amortization 3,484  3,274  
Income Taxes 2,229  2,147  
Property and other taxes 1,188  1,556  
Regulated Utility Operating Income$8,220 $8,220 $8,289 $8,289
       
Reconciliation of operating income      
Other profit  399 (a)  301(a)
Consolidated operating income $8,619    $8,590
In thousands 
 Nine Months Ended September 30,
 20252024
  Regulated Utility Total Regulated Utility Total
Regulated Utility Revenues$79,385 $79,385 $76,080 $76,080 
      
Reconciliation of revenue  
Other revenues  5,733 (a)   5,198 (a)
Inter-segment elimination  (192)    (176)
Consolidated revenues $84,926    $81,102
      
Less: (b)    
Payroll and Benefits (c)  19,266  18,772  
Supply and Delivery (d) 11,587  10,767  
Administrative (e) 7,600  6,899  
Depreciation and Amortization 10,229  10,137  
Income Taxes 5,680  5,297  
Property and other taxes 4,442  4,653  
Regulated Utility Operating Income$20,581 $20,581 $19,555 $19,555
      
Reconciliation of operating income  
Other profit  1,438 (a)  953(a)
Consolidated operating income $22,019    $20,508
In thousands
  Regulated Utility Total   Regulated Utility Total
Assets      
Regulated Utility Assets$829,477 $829,477  $793,118 $793,118 
       
Reconciliation of assets      
Other assets  4,431    5,505 
Consolidated assets $833,908   $798,623 
 
 
(a) Other revenues and other profit:
– Revenue and profit from segments below the quantitative thresholds are attributable to four non-utility businesses of the Company  
– These businesses are primarily comprised of: Service Line Protection Plan services for water, sewer and internal plumbing; design, construction and engineering services; contract services for the operation and maintenance of water and wastewater systems in Delaware and Maryland; and leased space to the Regulated Utility Segment  
– These non-utility businesses do not individually or in the aggregate meet the quantitative thresholds for determining reportable segments  
– Certain corporate costs have been allocated from the regulated utility segment to the non-utility businesses and are included in the other profit amounts shown
(b) Significant expense categories:
– The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM  
– Inter-segment expenses related to leased space provided by one non-utility business, calculated on the lower of cost or market method, are included in the amounts shown  
(c) Payroll and benefits:
– This category does not include amounts capitalized on the Condensed Consolidated Balance Sheet
(d) Supply and Delivery:
– This category includes purchased power, purchased water, chemicals, infrastructure maintenance and repair costs, and wastewater disposal fees   
(e) Administration expense:
– This category includes computer systems maintenance and subscription fees, audit and legal fees, insurance, customer billing, and other general and administrative expenses