Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 171

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 171
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 but not limited to,
assets, revenue, operating income, operating cash flows, and employees. No single factor was the sole determinant in the overall conclusion that American Water is the accounting acquirer; rather, all factors were considered in arriving at such
conclusion.

The combined company will measure Essential’s assets acquired and liabilities assumed at their fair values, including net tangible and
identifiable intangible assets acquired and liabilities assumed, as of the acquisition date. Any consideration transferred in a business combination in excess of those fair values will be recorded as goodwill.

Definite lived intangible assets will be amortized over their estimated useful lives. Intangible assets with indefinite useful lives and goodwill will not be
amortized but will be tested for impairment at least annually. All intangible assets and goodwill are also tested for impairment when certain indicators are present.

The total consideration transferred by American Water in connection with the merger and the related allocation of the total merger consideration to the
acquired assets and assumed liabilities of Essential reflected in the unaudited pro forma condensed combined financial information is based on preliminary estimates using assumptions American Water management and Essential management believe are
reasonable based on currently available information. The total consideration transferred by American Water in connection with the merger and fair value assessment of assets and liabilities will be based in part on a detailed valuation that has not
yet been completed.

Exchange of Shares

The conversion of shares of Essential common stock into the right to receive the merger consideration will occur automatically at the effective time of the
merger. Prior to the effective time, American Water will appoint an exchange agent. At or prior to the effective time, American Water will deposit, or cause to be deposited, with the exchange agent, in trust for the benefit of the holders of
Essential common stock, certificates representing the shares of American Water common stock issuable in the merger (or American Water shall make appropriate alternate arrangements for shares of American Water common stock that will be
uncertificated). As soon as reasonably practicable after the effective time of the merger, the exchange agent will exchange certificates formerly representing shares of Essential common stock for merger consideration to be received in the merger
pursuant to the merger agreement (or alternate arrangements will be made for uncertificated shares of American Water common stock). All certificates or alternatives representing the shares of American Water common stock issuable in the merger
(including the amount of any dividends or distributions payable with respect to Essential common stock and cash in lieu of fractional shares of American Water common stock) are referred to as the