Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 220

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 220
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 million with a corresponding change to goodwill related to the merger. The average opening and closing price for the pro forma period of January 1, 2024 through September 30, 2025 each varied from the share price used in calculating consideration by 4%; the maximum share price during this period varied by 21%; the minimum share price during this period varied by (10%).

| 3) | Consideration is reflected (i) within common stock as approximately 86 million shares of American                                                                                                                        
 Water common stock to be issued to existing Essential shareholders multiplied by the par value of $0.01 per share and (ii) within paid-in-capital as total                                                               
 consideration less the par value of American Water common stock. For a more detailed discussion of the treatment of Essential equity awards, see “The Merger Agreement—Treatment of Outstanding Essential Equity Awards” 
 beginning on page 123.                                                                                                                                                                                                   |

| (D) | Reflects the issuance of incremental short-term debt, consisting of commercial paper borrowings in the amount                                                                                                                                   
 of $150 million that American Water plans to use to finance transaction costs associated with the merger, exclusive of any debt issuance costs or discounts. The related adjustment to the unaudited pro forma condensed combined statements of 
 operations for the associated interest expense is reflected at adjustment (BB).                                                                                                                                                                 |

3. Adjustments to the Unaudited Pro Forma Condensed Combined Statements of Operations for the Nine Months Ended September 30, 2025 and for the Year Ended December 31, 2024

| (AA) | Reflects reclassification adjustments to conform certain of Essential’s historical expenses to the 
 financial statement presentation of American Water.                                                |

| (CC) | Reflects the tax impact of all pro forma adjustments, calculated using a statutory corporate income tax rate of 
 21%.                                                                                                            |

| (DD) | Reflects the recognition of nonrecurring expense related to estimated transaction costs in the amount of                                                                                                                                     
 $150 million, which are primarily comprised of investment banking fees, legal fees, accounting and audit fees, and other related advisory costs. The related unaudited pro forma condensed combined balance sheet adjustment is reflected at 
 adjustment (C).                                                                                                                                                                                                                              |

153

4. Unaudited Pro Forma Net Income Per Share

|                                                                             |     |   | For the Nine Months Ended 
        September 30, 2025 |     |   | For the Year Ended 
  December 31, 2024 |
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