Company: AWK
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001410636-25-000150
Chunk: 74

Company: American Water Works Company, Inc.
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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3 within the fair value hierarchy.Preferred stock with mandatory redemption requirements and long-term debt—The fair values of preferred stock with mandatory redemption requirements and long-term debt are categorized within the fair value hierarchy based on the inputs that are used to value each instrument. The fair value of long-term debt classified as Level 1 is calculated using quoted prices in active markets. Level 2 instruments are valued using observable inputs and Level 3 instruments are valued using observable and unobservable inputs.

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Presented in the tables below are the carrying amounts, including fair value adjustments previously recognized in acquisition purchase accounting, and the fair values of the Company’s financial instruments:As of June 30, 2025Carrying AmountAt Fair Value Level 1Level 2Level 3TotalPreferred stock with mandatory redemption requirements$3 $— $— $3 $3 Long-term debt13,397 10,686 1,057 609 12,352 As of December 31, 2024 Carrying AmountAt Fair Value Level 1Level 2Level 3TotalPreferred stock with mandatory redemption requirements$3 $— $— $3 $3 Long-term debt13,155 10,165 1,050 658 11,873 Recurring Fair Value MeasurementsPresented in the tables below are assets and liabilities measured and recorded at fair value on a recurring basis and their level within the fair value hierarchy:As of June 30, 2025 Level 1Level 2Level 3TotalAssets:    Restricted funds$41 $— $— $41 Rabbi trust investments28 — — 28 Deposits52 — — 52 Other investments:Money market and other25 — — 25 Fixed-income securities65 6 — 71 Mark-to-market derivative asset— 4 — 4 Total assets211 10 — 221 Liabilities:    Deferred compensation obligations34 — — 34 Mark-to-market derivative liability— 1 — 1 Total liabilities34 1 — 35 Total assets$177 $9 $— $186 

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As of December 31, 2024 Level 1Level 2Level 3TotalAssets:    Restricted funds$44 $— $— $44 Rabbi trust investments29