Company: AWK
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001410636-25-000022
Chunk: 149

Company: American Water Works Company, Inc.
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 149
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 and liabilities (b)40 76 (355)Pension and non-pension postretirement benefit contributions(52)(49)(51)Gain on sale of businesses— — (19)Net cash provided by operating activities$2,045 $1,874 $1,108 

(a)Includes provision for losses on accounts receivable, pension and non-pension postretirement benefits and other non-cash, net. Details of each component can be found on the Consolidated Statements of Cash Flows.

(b)Changes in assets and liabilities include changes to receivables and unbilled revenues, income tax receivable, accounts payable, accrued liabilities, accrued taxes and other assets and liabilities, net.

In 2024, cash flows provided by operating activities increased $171 million, primarily due to an increase in net income and depreciation, partially offset by changes in deferred income taxes.

The Company expects to make pension contributions to the plan trusts of $44 million in 2025. Actual amounts contributed could change materially from this estimate as a result of changes in assumptions and actual investment returns, among other factors.

Cash Flows from Investing Activities

Presented in the table below is a summary of the major items affecting the Company’s cash flows from investing activities:

 For the Years Ended December 31,(In millions)202420232022Capital expenditures$(2,856)$(2,575)$(2,297)Acquisitions, net of cash acquired(417)(81)(315)Proceeds from sale of assets, net of cash on hand— — 608 Removal costs from property, plant and equipment retirements, net(152)(159)(123)Purchases of available-for-sale fixed-income securities(135)— — Proceeds from sales and maturities of available-for-sale fixed-income securities181 — — Net cash used in investing activities$(3,379)$(2,815)$(2,127)

In 2024, cash flows used in investing activities increased $564 million as a result of increased payments for capital expenditures and acquisitions in 2024. The Company continues to invest across all infrastructure categories, mainly replacement and renewal of transmission and distribution and services, meter and fire hydrants infrastructure in the Company’s Regulated Businesses, as discussed below. 

The Company’s infrastructure investment plan consists of both infrastructure renewal programs, where the Company replaces mains, services, meters, hydrants and valves, as needed, and major capital investment projects, where the Company