Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 170

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 170
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 — |     | $         |       — |
| Christopher P. Luning   |     | $                 |  66,298 |     | $            |  25,000 |     | $         |  91,298 |
| Colleen M. Arnold       |     | $                 |  59,498 |     | $            |  25,000 |     | $         |  84,498 |
| Michael A. Huwar        |     | $                 |  59,498 |     | $            |  25,000 |     | $         |  84,498 |

| (4) | Accrued Dividend Equivalents. The amounts listed in this column represent the amount of accrued dividend                                                                                                                                
 equivalents in respect of Essential equity awards. Dividend equivalents accrue and are paid when the corresponding equity awards are earned, if applicable, and paid/settled. These are “double trigger” benefits and therefore payable 
 pursuant to the applicable named executive officer’s qualifying termination of employment within 90 days (six months in the case of Mr. Franklin) prior to or 24 months following, a change in control.                                 |

| (5) | Matthew R. Rhodes, Former EVP, Strategy and Corporate Development, resigned on September 20, 2024, 
 and is not entitled to any severance or termination payments in connection with the merger.        |

111

Accounting Treatment of the Merger

The merger will be accounted for using the acquisition method of accounting in accordance with Financial Accounting Standards Board Accounting Standards
Codification Topic 805, Business Combinations, which is referred to as ASC 805. In accordance with GAAP, one of the two companies in the merger is required to be designated as the acquirer for accounting purposes based on the evidence available.
American Water has been treated as the acquirer for accounting purposes, and thus, accounts for the merger as a business combination in accordance with ASC 805. In identifying American Water as the acquiring entity for accounting purposes, the
companies took into account the (i) intended corporate governance structure of the combined company, (ii) the relative voting rights in the combined company after the merger, (iii) the composition of the senior management of the
combined company, (iv) the terms of the exchange of equity interests, and (v) the size of each of the companies. In assessing the size of each of the companies, the companies evaluated various metrics, including,