Company: AWK
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001410636-25-000150
Chunk: 37

Company: American Water Works Company, Inc.
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 the year ended December 31, 2024 (“Form 10-K”), which provides a more complete discussion of the Company’s accounting policies, financial position, operating results and other matters. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the year, primarily due to the seasonality of the Company’s operations.

Note 2: Significant Accounting PoliciesNew Accounting StandardsPresented in the table below are recently issued accounting standards that have not yet been adopted by the Company as of June 30, 2025:Standard Description Date of Adoption Application Effect on the Consolidated Financial StatementsIncome TaxesThe guidance in this standard requires disclosure of a tax rate reconciliation table, in both percentages and reporting currency amounts, which includes additional categories of information about federal, state, and foreign income taxes and provides further details about reconciling items in certain categories that meet a quantitative threshold. The guidance also requires an annual disclosure of income taxes paid, net of refunds, disaggregated by federal, state, and foreign taxes paid, and further disaggregated by jurisdiction based on a quantitative threshold. The standard includes other disclosure requirements and eliminates certain existing disclosure requirements.Annual periods beginning after December 15, 2024Prospective, with retrospective application also permitted.The Company is evaluating the impact on its Consolidated Financial Statements.Income Statement DisaggregationThe guidance in this standard enhances disclosures related to income statement expenses to further disaggregate expenses in the footnotes to the financial statements. The standard requires disaggregation of any relevant expense caption presented on the face of the income statement that contains the following expense categories: purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion.  Further, the standard requires disclosure of the total amount and the entity’s definition of selling expenses.Annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027Prospective, with retrospective application also permitted.The Company is evaluating the impact on its Consolidated Financial Statements and the timing of adoption.Induced Conversions of Convertible Debt InstrumentsThe guidance in this standard clarifies the requirements for determining whether to account for certain settlements of convertible debt instruments as induced conversions or extinguishments. The guidance requires an entity to account for a settlement as an induced conversion if the inducement offer includes the issuance of all of the consideration issuable under the conversion privileges provided in the terms of the existing convertible debt instrument.Annual periods beginning after December 15, 2025