Company: AWK
Filing Date: 2025-02-27
Form Type: S-3ASR
Source: 0001410636-25-000050
Chunk: 15

Company: American Water Works Company, Inc.
Filing Date: 2025-02-27
Form: S-3ASR
Chunk 15
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 period for shares purchased will begin on the day after the shares are purchased (whether through optional cash purchases or dividend reinvestments). In

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addition, the IRS may require that brokerage fees incurred in the purchase of shares and paid by us in connection with open market purchases on a U.S. Participant’s behalf be treated as dividend income to a U.S. Participant, in which case such amounts also can be included in the tax basis of the purchased shares.

• A U.S. Participant does not realize taxable income from the transfer of shares to its Plan account or from the withdrawal of whole shares from its Plan account. A U.S. Participant will, however, generally realize gain or loss from the receipt of cash instead of any fractional share. A U.S. Participant also will realize gain or loss when its Plan shares are sold. The amount of the gain or loss generally will be the difference between the amount received for the shares and the tax basis of the shares. Any gain or loss so recognized by an individual shareholder who is not a dealer in securities will generally be treated as a long-term capital gain or loss if the shares have been held for more than 12 months and otherwise will be treated as a short-term capital gain or loss.

• The Plan Administrator reports dividend income to participants and the IRS on Form 1099-DIV. The Plan Administrator reports the gross proceeds from the sale of Plan shares and tax basis information to the selling U.S. Participants and the IRS on Form 1099-B. When shares are sold, your cost or other basis in such shares and whether the gain or loss with respect to such sale is long-term or short-term will be reported to you and the IRS. The Plan assumes that each U.S. Participant will use the first-in, first-out (FIFO) method when determining the tax basis of shares of any shares sold. U.S. Participants may designate their preference for a different method of determining the tax basis of shares at any time by identifying this preference in writing to Equiniti. U.S. Participants may designate in writing their preference for a “specific identification” cost basis or for the “average basis method.”

• Certain U.S. Participants having adjusted gross income more than $200,000 ($250,000 in the case of married, filing jointly) that are individuals, trusts or estates will be subject to an additional 3.8% Medicare tax on unearned income, which generally will include dividends received and gain recognized with respect to American Water