Company: AWK
Filing Date: 2025-02-27
Form Type: S-3ASR
Source: 0001410636-25-000050
Chunk: 16

Company: American Water Works Company, Inc.
Filing Date: 2025-02-27
Form: S-3ASR
Chunk 16
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 common stock. U.S. Participants are urged to consult their own tax advisors regarding the implications of this additional Medicare tax to their particular circumstances.

• A U.S. Participant’s dividends and sale proceeds are subject to federal backup withholding if (i) the U.S. Participant fails to provide a taxpayer identification number to the Plan Administrator (such as an IRS Form W-9), (ii) the IRS notifies us that the U.S. Participant is subject to tax withholding, or (iii) the U.S. Participant fails to certify, under penalties of perjury, that it is not subject to backup withholding if such certification is required. Dividends and sale proceeds payable to Plan participants residing in certain foreign countries also may be subject to federal withholding. In any case in which federal income taxes are required to be withheld, the Plan Administrator reinvests or pays to you, as the case may be, an amount equal to the dividends or sale proceeds less the amount of tax withheld. For IRS reporting purposes, the amount of any dividend withheld is included in the dividend income.

• Any non-U.S. Participants may be subject to U.S. withholding and estate tax and are encouraged to consult their tax advisors. Additionally, dividends payable to foreign shareholders are subject to special reporting rules referred to as “FATCA.” If certain disclosure and reporting requirements are not complied with, such dividends are subject to a withholding tax rate of 30%, notwithstanding any treaty that may provide for a lower rate.

### PLAN OF DISTRIBUTION
American Water is offering up to 4,214,534 shares of American Water common stock pursuant to the Plan with this Prospectus and may issue up to 5,000,000 shares of common stock in the aggregate under the Plan.

The terms of the Plan provide for the purchase of newly issued shares or treasury shares, directly from American Water, or, at its option, by an independent broker-dealer on the open market or in privately negotiated transactions. As of the date of this Prospectus, American Water plans to use newly issued or treasury shares for purchase under the Plan. American Water may not change this determination regarding the source of purchases of shares under the Plan more than once in any calendar quarter.

There will be no brokerage commissions or related service charges for newly issued or treasury shares of American Water common stock purchased directly from American Water. Participants will be responsible for service charges and brokerage commissions if American Water elects in the future to use an independent broker-dealer to purchase shares on the open market. Participants will bear the cost of