Company: AWK
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001410636-25-000150
Chunk: 76

Company: American Water Works Company, Inc.
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 76
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 of paying active union employee medical benefits (“Active VEBA”). The investments in the Active VEBA trust primarily consist of money market funds and available-for-sale fixed-income securities. The money market and other investments have original maturities of three months or less when purchased. The fair value measurement of the money market and other investments is based on quoted prices for identical assets in active markets and therefore included in the recurring fair value measurements hierarchy as Level 1. The available-for-sale fixed-income securities are primarily investments in U.S. Treasury securities and government bonds. The majority of U.S. Treasury securities and government bonds have been categorized as Level 1 because they trade in highly-liquid and transparent markets. Certain U.S. Treasury securities are based on prices that reflect observable market information, such as actual trade information of similar securities, and are therefore categorized as Level 2, because the valuations are calculated using models which utilize actively traded market data that the Company can corroborate. 

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The Company includes other investments measured and recorded at fair value on the Consolidated Balance Sheets of $81 million and $71 million in other current assets, as of June 30, 2025, and December 31, 2024, respectively, and $15 million and $44 million in other long-term assets, as of June 30, 2025, and December 31, 2024, respectively. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported in other comprehensive income until realized.The following tables summarize the unrealized positions for available-for-sale fixed-income securities:As of June 30, 2025Amortized Cost BasisGross Unrealized GainsGross Unrealized LossesFair ValueAvailable-for-sale fixed-income securities$72 $— $1 $71 As of December 31, 2024Amortized Cost BasisGross Unrealized GainsGross Unrealized LossesFair ValueAvailable-for-sale fixed-income securities$94 $2 $2 $94 The fair value of the Company’s available-for-sale fixed-income securities, summarized by contractual maturities, as of June 30, 2025, is as follows:AmountOther investments - Available-for-sale fixed-income securitiesLess than one year$34 1 year - 5 years25 5 years - 10 years5 Greater than 10 years7 Total$71 

Note 14: LeasesThe Company has operating and finance leases involving