Company: AWK
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001410636-25-000173
Chunk: 121

Company: American Water Works Company, Inc.
Filing Date: 2025-10-29
Form: 10-Q
Item: Part I, Item 1
Chunk 121
---
 included in Other and $44 million of other long-term assets included in Other on the Consolidated Balance Sheets for other investments measured and recorded at fair value. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported in other comprehensive income until realized.The following tables summarize the unrealized positions for available-for-sale fixed-income securities:As of September 30, 2025Amortized Cost BasisGross Unrealized GainsGross Unrealized LossesFair ValueAvailable-for-sale fixed-income securities$58 $— $1 $57 As of December 31, 2024Amortized Cost BasisGross Unrealized GainsGross Unrealized LossesFair ValueAvailable-for-sale fixed-income securities$94 $2 $2 $94 The fair value of the Company’s available-for-sale fixed-income securities, summarized by contractual maturities, as of September 30, 2025, is as follows:AmountOther investments - Available-for-sale fixed-income securitiesLess than one year$19 1 year - 5 years26 5 years - 10 years5 Greater than 10 years7 Total$57 

36

Note 14: LeasesThe Company has operating and finance leases involving real property, including facilities, utility assets, vehicles, and equipment. Certain operating leases have renewal options ranging from one year to 60 years. The exercise of lease renewal options is at the Company’s sole discretion. Renewal options that the Company was reasonably certain to exercise are included in the Company’s right-of-use (“ROU”) assets. Certain operating leases contain the option to purchase the leased property. The operating leases for real property, vehicles and equipment will expire over the next 39 years, five years, and five years, respectively.The Company participates in a number of arrangements with various public entities (“Partners”) in West Virginia. Under these arrangements, the Company transferred a portion of its utility plant to the Partners in exchange for an equal principal amount of Industrial Development Bonds (“IDBs”) issued by the Partners under the Industrial Development and Commercial Development Bond Act. The Company leased back the utility plant under agreements for a period of 30 to 40 years. The Company has recorded these agreements as finance leases in property, plant and equipment, as ownership of the assets will revert back to the Company at the end of the lease term. The carrying value of the finance lease assets was $143 million as of September 30, 2025, and December