Source: https://ir.aquaamerica.com/node/17471/xbrl-viewer
Timestamp: 2020-01-23 08:13:55
Document Index: 551264709

Matched Legal Cases: ['art 2012', 'art 2011', 'art 2019', 'art 2010', 'art 2020', 'art 2021', 'art 2018', 'art 2014']

Document and Entity Information CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS (Parenthetical) CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME CONSOLIDATED STATEMENTS OF CAPITALIZATION CONSOLIDATED STATEMENTS OF CAPITALIZATION (Parenthetical) CONSOLIDATED STATEMENT OF EQUITY CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) CONSOLIDATED STATEMENTS OF CASH FLOW CONSOLIDATED STATEMENTS OF CASH FLOW (Parenthetical) Basis of Presentation Goodwill Dispositions Long-term Debt and Loans Payable Fair Value of Financial Instruments Net Income per Common Share Stock-based Compensation Pension Plans and Other Postretirement Benefits Water and Wastewater Rates Taxes Other than Income Taxes Segment Information Recent Accounting Pronouncements Commitments and Contingencies
Entity Registrant Name AQUA AMERICA INC
Entity Central Index Key 0000078128
Entity Common Stock, Shares Outstanding 137,258,091
Property, plant and equipment, at cost $ 4,308,360 $ 4,141,690
Less: accumulated depreciation 967,167 914,396
Net property, plant and equipment 3,341,193 3,227,294
Cash and cash equivalents 13,112 21,869
Accounts receivable and unbilled revenues, net 85,597 78,742
Inventory, materials and supplies 9,916 9,519
Prepayments and other current assets 10,538 11,441
Total current assets 119,163 121,571
Regulatory assets 221,440 226,351
Deferred charges and other assets, net 60,748 59,468
Funds restricted for construction activity 81,634 84,830
Goodwill 43,201 43,083
Total assets 3,867,379 3,762,597
Common stock at $.50 par value, authorized 300,000,000 shares, issued 137,846,662 and 137,148,749 in 2010 and 2009 68,923 68,574
Capital in excess of par value 651,985 642,786
Retained earnings 421,090 409,402
Treasury stock, at cost, 674,570 and 662,410 shares in 2010 and 2009 (12,327) (12,138)
Accumulated other comprehensive income (loss) (148) 280
Total Aqua America stockholders' equity 1,129,523 1,108,904
Noncontrolling interest 559 560
Total equity 1,130,082 1,109,464
Long-term debt, excluding current portion 1,461,606 1,386,557
Current portion of long-term debt 35,226 59,577
Loans payable 51,433 27,487
Accounts payable 49,700 57,862
Accrued interest 17,740 16,265
Accrued taxes 18,481 18,813
Other accrued liabilities 26,001 21,003
Total current liabilities 198,581 201,007
Deferred income taxes and investment tax credits 414,357 408,583
Customers' advances for construction 68,995 76,913
Regulatory liabilities 30,829 28,812
Other 111,668 114,490
Total deferred credits and other liabilities 625,849 628,798
Contributions in aid of construction 451,261 436,771
Total liabilities and stockholders' equity $ 3,867,379 $ 3,762,597
Developers, builders, governmental agencies and municipalities will provide the entity with cash, or in some cases property, to extend its services to their properties. Nonrefundable contributions are recorded as contributions in aid of construction ("CIAC").
Name: us-gaap_ContributionsInAidOfConstruction
For utilities only, represents the carrying amount of the liability as of the balance sheet date for payments received by a utility from its customers in advance of performing its obligations under terms of its construction agreements.
Name: us-gaap_CustomerAdvancesForConstruction
Carrying amount at the balance sheet date for long-lived physical assets used in the normal conduct of business and not intended for resale. This can include land, physical structures, machinery, vehicles, furniture, computer equipment, construction in progress, and similar items. Amount does not include depreciation.
Carrying amount as of the balance sheet date of capitalized costs of regulated entities that are not expected to be recovered through revenue sources within one year or the normal operating cycle if longer.
-Number 71
-Paragraph 9, 10
Name: us-gaap_RegulatoryAssetsNoncurrent
Net amount of financing expenses, other costs and marketable securities.
Name: wtr_DeferredChargesAndOtherAssetsNet
Namespace Prefix: wtr_
Common stock, shares issued 137,846,662 137,148,749
Treasury stock, shares 674,570 662,410
Operating revenues $ 178,444 $ 167,333 $ 338,961 $ 321,820
Operations and maintenance 69,310 68,549 136,911 135,538
Depreciation 26,802 24,972 53,002 51,359
Amortization 3,314 3,064 6,486 5,819
Taxes other than income taxes 12,943 11,884 25,803 23,474
Total expenses 112,369 108,469 222,202 216,190
Operating income 66,075 58,864 116,759 105,630
Interest expense, net 18,504 16,809 36,934 33,437
Allowance for funds used during construction (1,461) (568) (3,002) (1,193)
Gain on sale of other assets (110) (80) (2,039) (213)
Income before income taxes 49,142 42,703 84,866 73,599
Provision for income taxes 19,287 16,850 33,500 29,375
Net income attributable to common shareholders 29,855 25,853 51,366 44,224
Unrealized holding gain on investments 0 232 902 269
Reclassification adjustment for (gains) losses reported in net income 0 5 (1,330) 5
Comprehensive income $ 29,855 $ 26,090 $ 50,938 $ 44,498
Basic $ 0.22 $ 0.19 $ 0.38 $ 0.33
Diluted $ 0.22 $ 0.19 $ 0.38 $ 0.33
Basic 136,785 135,631 136,647 135,519
Diluted 137,012 135,939 136,960 135,880
Cash dividends declared per common share $ 0.145 $ 0.135 $ 0.29 $ 0.27
The aggregate amount of recurring noncash expense charged against earnings in the period to allocate the cost of intangible assets over their estimated remaining economic lives.
The gains and losses included in results of operations resulting from the sale or disposal of other assets not otherwise defined.
Name: us-gaap_GainLossOnDispositionOfOtherAssets
Total increase in earnings in the period representing the cost of equity (rate of return) and borrowed funds (interest rate) used to finance construction of regulated assets, which is expected to be recovered through rate adjustments.
-Number 90
-Number 92
-Paragraph 8, 9, 12
Name: us-gaap_PublicUtilitiesAllowanceForFundsUsedDuringConstructionAdditions
Discloses the amount of operating expense for the period for routine plant maintenance, repairs and operations.
Name: us-gaap_UtilitiesOperatingExpenseMaintenanceAndOperations
Taxes, excluding income taxes, that includes property, capital stock, gross receipts, excise and franchise, payroll, and other taxes.
Name: wtr_TaxesOtherThanIncomeTaxes
CONSOLIDATED STATEMENTS OF CAPITALIZATION (USD $)
Common stock, $.50 par value $ 68,923 $ 68,574
Treasury stock, at cost (12,327) (12,138)
Accumulated other comprehensive income (148) 280
Long-term debt of subsidiaries 966,700 989,853
Notes payable to bank under revolving credit agreement,variable rate, due May 2012 68,000 64,149
Total long-term debt 1,496,832 1,446,134
Total capitalization 2,591,688 2,496,021
Long Term Debt Of Subsidiaries 0.00% To 0.99% [Member]
Debt instrument, principal outstanding 6,587 6,868
Long-Term Debt Of Subsidiaries 1.00% To 1.99% [Member]
Debt instrument, principal outstanding 21,559 21,917
Long-Term Debt Of Subsidiaries 2.00% To 2.99% [Member]
Debt instrument, principal outstanding 14,195 12,935
Long-Term Debt Of Subsidiaries 3.00% To 3.99% [Member]
Debt instrument, principal outstanding 27,014 28,455
Long-Term Debt Of Subsidiaries 4.00% To 4.99% [Member]
Debt instrument, principal outstanding 270,634 271,346
Long-Term Debt Of Subsidiaries 5.00% To 5.99% [Member]
Debt instrument, principal outstanding 384,533 384,694
Long-Term Debt Of Subsidiaries 6.00% To 6.99% [Member]
Debt instrument, principal outstanding 121,582 121,876
Long-Term Debt Of Subsidiaries 7.00% To 7.99% [Member]
Debt instrument, principal outstanding 30,704 31,236
Long-Term Debt Of Subsidiaries 8.00% To 8.99% [Member]
Debt instrument, principal outstanding 34,404 34,543
Long-Term Debt Of Subsidiaries 9.00% To 9.99% [Member]
Debt instrument, principal outstanding 49,488 69,983
Long-Term Debt Of Subsidiaries 10.40% [Member]
Debt instrument, principal outstanding 6,000 6,000
Notes Ranging From 4.62% To 4.87% [Member]
Unsecured notes payable: 220,000 185,000
Notes Ranging From 5.01% to 5.95% [Member]
Unsecured notes payable: $ 242,132 $ 207,132
This element represents the total consolidated (as applicable) capitalization of the entity which is comprised of its long-term debt and equity instruments. The table may be detailed by subsidiary (legal entity) and include information by type of debt or equity detailed by instrument.
Name: us-gaap_CapitalizationLongtermDebtAndEquity
Amount of outstanding principal due under the debt instrument at the end of the reporting period.
Name: us-gaap_DebtInstrumentPrincipalOutstanding
Carrying value of the noncurrent portion of notes payable which were initially due after one year or beyond the normal operating cycle, if longer, and which are not otherwise defined in the taxonomy.
Name: us-gaap_OtherLongTermNotesPayable
-Subsection 19, 20, 22
CONSOLIDATED STATEMENTS OF CAPITALIZATION (Parenthetical) (USD $)
Interest rate range, minimum 0 0
Interest rate range, maximum 0.0099 0.0099
Maturity date range, start 2012 2012
Maturity date range, end 2034 2034
Interest rate range, minimum 0.01 0.01
Interest rate range, maximum 0.0199 0.0199
Maturity date range, start 2011 2011
Maturity date range, end 2035 2035
Interest rate range, minimum 0.02 0.02
Interest rate range, maximum 0.0299 0.0299
Maturity date range, start 2019 2019
Maturity date range, end 2029 2029
Interest rate range, minimum 0.03 0.03
Interest rate range, maximum 0.0399 0.0399
Maturity date range, start 2010 2010
Maturity date range, end 2025 2025
Interest rate range, minimum 0.04 0.04
Interest rate range, maximum 0.0499 0.0499
Maturity date range, start 2020 2020
Maturity date range, end 2041 2041
Interest rate range, minimum 0.05 0.05
Interest rate range, maximum 0.0599 0.0599
Maturity date range, end 2043 2043
Interest rate range, minimum 0.06 0.06
Interest rate range, maximum 0.0699 0.0699
Maturity date range, end 2036 2036
Interest rate range, minimum 0.07 0.07
Interest rate range, maximum 0.0799 0.0799
Interest rate range, minimum 0.08 0.08
Interest rate range, maximum 0.0899 0.0899
Maturity date range, start 2021 2021
Interest rate range, minimum 0.09 0.09
Interest rate range, maximum 0.0999 0.0999
Maturity date range, end 2026 2026
Interest rate range, minimum 0.104 0.104
Interest rate range, maximum 0.104 0.104
Maturity date range, start 2018 2018
Maturity date range, end 2018 2018
Interest rate range, minimum 0.0462 0.0462
Interest rate range, maximum 0.0487 0.0487
Maturity date range, end 2024 2024
Interest rate range, minimum 0.0501 0.0501
Interest rate range, maximum 0.0595 0.0595
Maturity date range, start 2014 2014
Maturity date range, end 2037 2037
When presenting a range of interest rates, the highest stated (contractual) rate for funds borrowed under the debt agreement as of the balance sheet date.
When presenting a range of interest rates, the lowest stated (contractual) rate for funds borrowed under the debt agreement as of the balance sheet date.
Name: us-gaap_DebtInstrumentInterestRateStatedPercentageRateRangeMinimum
When presenting a range of maturity dates, the latest date when the outstanding debt instruments are required to be repaid. May be presented in a variety of ways (for example: year only, month and year, day, month and year, and number of years).
Name: us-gaap_DebtInstrumentMaturityDateRangeEnd
When presenting a range of maturity dates, the earliest date when the outstanding debt instruments are required to be repaid. May be presented in a variety of ways (for example: year only, month and year, day, month and year, and number of years).
Name: us-gaap_DebtInstrumentMaturityDateRangeStart
CONSOLIDATED STATEMENT OF EQUITY (USD $)
Balance at Dec. 31, 2009 $ 1,109,464 $ 68,574 $ 642,786 $ 409,402 $ (12,138) $ 280 $ 560
Net income 51,365 0 0 51,366 0 0 (1)
Unrealized holding gain on investments 902 0 0 0 0 902 0
Reclassification adjustment for (gains) losses reported in net income (1,330) 0 0 0 0 (1,330) 0
Dividends paid (39,678) 0 0 (39,678) 0 0 0
Sale of stock (377,668 shares) 6,188 180 5,670 0 338 0 0
Repurchase of common stock (527) 0 0 0 (527) 0 0
Equity compensation plan (190,838 shares) 0 95 (95) 0 0 0 0
Exercise of stock options (147,280 shares) 1,411 74 1,337 0 0 0 0
Stock-based compensation 2,157 0 2,157 0 0 0 0
Employee stock plan tax benefits 130 0 130 0 0 0 0
Balance at Jun. 30, 2010 $ 1,130,082 $ 68,923 $ 651,985 $ 421,090 $ (12,327) $ (148) $ 559
The cash inflow associated with the amount received from holders exercising their stock options.
Value of stock granted during the period as a result of any share-based compensation plan other than an employee stock ownership plan (ESOP). This element is not the recognition of share-based compensation expense in pursuant to FAS 123R. That element is AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue (Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value).
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) (USD $)
Unrealized holding gain on investments, tax $ 486
Reclassification adjustment for gain reported in net income, tax $ 716
Sale of stock, shares 377,668
Repurchase of stock, shares 30,033
Equity compensation plan, shares 190,838
Exercise of stock options, shares 147,280
Tax effect on the reclassification adjustment for gains or losses realized upon the sale of securities during the period.
Name: us-gaap_OtherComprehensiveIncomeReclassificationAdjustmentForSaleOfSecuritiesIncludedInNetIncomeTax
Tax effect on gross appreciation or the gross loss in value of the total of unsold securities during the period being reported on.
Number of stock granted during the period as a result of any share-based compensation plan other than en employee stock ownership plan
Name: us-gaap_StockGrantedDuringPeriodSharesSharebasedCompensation
CONSOLIDATED STATEMENTS OF CASH FLOW (USD $)
Net income attributable to common shareholders $ 51,366 $ 44,224
Adjustments to reconcile net income attributable to common shareholders to net cash flows from operating activities:
Depreciation and amortization 59,488 57,178
Deferred income taxes 4,495 18,218
Provision for doubtful accounts 2,233 3,116
Stock-based compensation 2,159 1,830
Gain on sale of utility system 0 (1,009)
Gain on sale of other assets (2,039) (213)
Net increase in receivables, inventory and prepayments (8,019) (3,758)
Net decrease in payables, accrued interest, accrued taxes and other accrued liabilities (6,684) (12,116)
Other (3,233) (921)
Net cash flows from operating activities 99,766 106,549
Property, plant and equipment additions, including allowance for funds used during construction of $3,002 and $1,193 (140,767) (117,134)
Acquisitions of utility systems and other, net (1,621) (1,170)
Additions to funds restricted for construction activity (1,020) (4,901)
Release of funds previously restricted for construction activity 4,216 33,299
Net proceeds from the sale of utility system and other assets 3,297 1,937
Other (4,633) (768)
Net cash flows used in investing activities (140,528) (88,737)
Customers' advances and contributions in aid of construction 4,243 2,524
Repayments of customers' advances (4,818) (1,306)
Net proceeds of short-term debt 23,946 16,489
Proceeds from long-term debt 101,329 3,705
Repayments of long-term debt (50,897) (3,650)
Change in cash overdraft position (9,309) (7,328)
Proceeds from issuing common stock 6,188 5,896
Proceeds from exercised stock options 1,411 1,540
Stock-based compensation windfall tax benefits 117 92
Repurchase of common stock (527) (300)
Dividends paid (39,678) (36,596)
Net cash flows from (used) in financing activities 32,005 (18,934)
Net decrease in cash and cash equivalents (8,757) (1,122)
Cash and cash equivalents at beginning of period 21,869 14,944
Cash and cash equivalents at end of period $ 13,112 $ 13,822
Cash inflow due to change during the period in the allowance for other funds used during construction classified as an investing activity.
Name: us-gaap_AllowanceForFundsUsedDuringConstructionInvestingActivities
The difference between the sale price or salvage price and the book value of an asset that was sold or retired during the reporting period. This element refers to the gain (loss) and not to the cash proceeds of the sale. This element is a noncash adjustment to net income when calculating net cash generated by operating activities using the indirect method. There is also a more specific element for realized gain (loss) on the sale of property, plant, and equipment.
The net change during the reporting period in the aggregate amount of assets used to generate operating income.
Name: us-gaap_IncreaseDecreaseInOperatingAssets
The cash outflow for the purchase of waste water systems which includes the waste treatment and disposal facility and equipment to households and industry.
Name: us-gaap_PaymentsToAcquireWasteWaterSystems
The net cash inflow (outflow) from the excess drawing from an existing cash balance, which will be honored by the bank but reflected as a loan to the drawer.
-Number 1300
The net cash inflow (outflow) for borrowing having initial term of repayment within one year or the normal operating cycle, if longer.
Name: wtr_AdditionsToFundsRestrictedForConstructionActivity
Name: wtr_GainOnSaleOfUtilitySystem
Proceeds from sale of utility system and other
Name: wtr_ProceedsFromSaleOfUtilitySystemAndOther
CONSOLIDATED STATEMENTS OF CASH FLOW (Parenthetical) (USD $)
Allowance for funds used during construction $ 3,002 $ 1,193
Name: wtr_AllowanceForFundsUsedDuringConstruction
The accompanying consolidated balance sheets and statements of capitalization of Aqua America, Inc. and subsidiaries (the "Company") at June 30, 2010, the consolidated statements of income and comprehensive income for the six and three months ended June 30, 2010 and 2009, the consolidated statements of cash flow for the six months ended June 30, 2010 and 2009, and the consolidated statement of equity for the six months ended June 30, 2010, are unaudited, but reflect all adjustments, consisting of only normal recurring accruals, which are, in the opinion of management, necessary to present fairly the consolidated financial position, the consolidated changes in equity, the consolidated results of operations, and the consolidated cash flow for the periods presented. Because they cover interim periods, the statements and related notes to the financial statements do not include all disclosures and notes normally provided in annual financial statements and, therefore, should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2009. The results of operations for interim periods may not be indicative of the results that may be expected for the entire year. The December 31, 2009 consolidated balance sheet data presented herein was derived from the Company's December 31, 2009 audited consolidated financial statements, but does not include all disclosures and notes normally provided in annual financial statements.
The following table summarizes the changes in the Company's goodwill, by business segment:
$ 38,962 $ 4,121 $ 43,083
$ 39,080 $ 4,121 $ 43,201
The City of Fort Wayne, Indiana ("the City") has authorized the acquisition by eminent domain of the northern portion of the utility system of one of the operating subsidiaries that the Company acquired in connection with the AquaSource acquisition in 2003. The Company challenged whether the City was following the correct legal procedures in connection with the City's attempted condemnation, but the Indiana Supreme Court, in an opinion issued in June 2007, supported the City's position. In October 2007, the City's
Board of Public Works approved proceeding with its process to condemn the northern portion of the Company's utility system at a preliminary price based on the City's valuation. The Company has filed an appeal with the Allen County Circuit Court challenging the Board of Public Works' valuation on several bases. In November 2007, the City Council authorized the taking of the northern portion of the Company's system and the payment of $16,911 based on the City's valuation of this portion of the system. In January 2008, the Company reached a settlement with the City to transition the northern portion of the system in February 2008 upon receipt of the City's initial valuation payment of $16,911. The settlement agreement specifically stated that the final valuation of the northern portion of the Company's system will be determined through a continuation of the legal proceedings that were filed challenging the City's valuation. On February 12, 2008, the Company turned over the northern portion of the system to the City upon receipt of the initial valuation payment. The Indiana Utility Regulatory Commission also reviewed and acknowledged the transfer of the Certificate of Territorial Authority for the northern portion of the system to the City. The proceeds received by the Company are in excess of the book value of the assets relinquished. No gain has been recognized due to the contingency over the final valuation of the assets. The net book value of the assets relinquished has been removed from the consolidated balance sheet and the difference between the net book value and the initial payment received has been deferred and is recorded in other accrued liabilities on the Company's consolidated balance sheet. Once the contingency is resolved and the asset valuation is finalized, through the finalization of the litigation between the Company and the City of Fort Wayne, the amounts deferred will be recognized in the Company's consolidated income statement. On March 16, 2009, oral argument was held on certain procedural aspects with respect to the valuation evidence that may be presented and whether the Company is entitled to a jury trial. Depending upon the outcome of the legal proceeding, the Company may be required to refund a portion of the initial valuation payment, or may receive additional proceeds. The northern portion of the utility system relinquished represents approximately 0.50% of the Company's total assets.
Disclosure of all information related to any significant acquisition and disposal. Disclosure may include methodology and assumptions, type of asset, asset classification, useful life, useful purpose, acquisition cost, method of acquisition or disposal, depreciation method, gain or loss on disposal pretax and net of tax, date of acquisition or disposal and restrictions on amount of proceeds from donated assets.
Long-term Debt and Loans Payable
In June 2010, the Company issued $70,000 of senior unsecured notes, of which $15,000 is due in 2021, $20,000 in 2024, and $35,000 in 2028 with interest rates of 4.62%, 4.83%, and 5.22%.
This element may be used as a single block of text to encapsulate the entire disclosure for long-term borrowings including data and tables.
The carrying amount of current assets and liabilities that are considered financial instruments approximates their fair value as of the dates presented. The carrying amount and estimated fair value of the Company's long-term debt are as follows:
$ 1,496,832 $ 1,446,134
1,500,690 1,315,954
The fair value of long-term debt has been determined by discounting the future cash flows using current market interest rates for similar financial instruments of the same duration. The Company's customers' advances for construction and related tax deposits have a carrying value of $68,529 as of June 30, 2010, and $76,913 as of December 31, 2009. Their relative fair values cannot be accurately estimated because future refund payments depend on several variables, including new customer connections, customer consumption levels, and future rate increases. Portions of these non-interest bearing instruments are payable annually through 2025 and amounts not paid by the contract expiration dates become non-refundable. The fair value of these amounts would, however, be less than their carrying value due to the non-interest bearing feature.
Basic net income per common share is based on the weighted average number of common shares outstanding. Diluted net income per common share is based on the weighted average number of common shares outstanding and potentially dilutive shares. The dilutive effect of employee stock options is included in the computation of diluted net income per common share. The dilutive effect of stock options is calculated using the treasury stock method and expected proceeds upon exercise of the stock options. The following table summarizes the shares, in thousands, used in computing basic and diluted net income per common share:
136,647 135,519 136,785 135,631
313 361 227 308
136,960 135,880 137,012 135,939
For the six and three months ended June 30, 2010, employee stock options to purchase 2,665,445 shares of common stock, were excluded from the calculations of diluted net income per share as the calculated proceeds from the options' exercise were greater than the average market price of the Company's common stock during these periods. For the six and three months ended June 30, 2009, employee stock options to purchase 2,144,059 and 2,720,294 shares of common stock, respectively, were excluded from the calculations of diluted net income per share as the calculated proceeds from the options' exercise were greater than the average market price of the Company's common stock during these periods.
Under the Company's 2009 Omnibus Equity Compensation Plan (the "2009 Plan"), as approved by the Company's shareholders to replace the 2004 Equity Compensation Plan
(the "2004 Plan"), stock options, stock units, stock awards, stock appreciation rights, dividend equivalents, and other stock-based awards may be granted to employees, non-employee directors, and consultants and advisors. The 2009 Plan authorizes 5,000,000 shares for issuance under the plan. A maximum of 50% of the shares available for issuance under the 2009 Plan may be issued as restricted stock and the maximum number of shares that may be subject to grants under the Plan to any one individual in any one year is 200,000. Awards under the 2009 Plan are made by a committee of the Board of Directors. At June 30, 2010, 4,328,625 shares underlying stock option and restricted stock awards were still available for grants under the 2009 Plan. No further grants may be made under the 2004 Plan.
Stock Options– During the six months ended June 30, 2010 and 2009, the Company recognized compensation costs associated with stock options as a component of operations and maintenance expense of $1,013 and $1,201, respectively. During the three months ended June 30, 2010 and 2009, the Company recognized compensation costs associated with stock options as a component of operations and maintenance expense of $519 and $658, respectively. For the six months ended June 30, 2010 and 2009, the Company recognized income tax benefits associated with stock options in its income statement of $301 and $235, respectively. For the three months ended June 30, 2010 and 2009, the Company recognized income tax benefits associated with stock options in its income statement of $149 and $134, respectively. In addition, the Company capitalized compensation costs associated with stock options within property, plant and equipment of $0 and $73 during the six and three months ended June 30, 2010 and 2009, respectively.
The fair value of options was estimated at the grant date using the Black-Scholes option-pricing model. The per share weighted-average fair value at the date of grant for stock options granted during the six months ended June 30, 2010 and 2009 was $3.49 and $4.37 per option, respectively. There were no stock options granted during the three months ended June 30, 2010 and 2009. The following assumptions were used in the application of this valuation model:
2.8 % 2.2 %
26.7 % 31.3 %
3.3 % 3.0 %
The following table summarizes stock option transactions for the six months ended June 30, 2010:
3,895,329 $ 19.17
459,837 17.14
(10,835 ) 18.83
(22,357 ) 21.93
(147,280 ) 9.58
4,174,694 $ 19.27 6.0 $ 4,241
3,152,340 $ 19.55 5.1 $ 3,996
Restricted Stock– During the six months ended June 30, 2010 and 2009, the Company recorded stock-based compensation related to restricted stock awards as a component of operations and maintenance expense in the amounts of $1,144 and $629, respectively. During the three months ended June 30, 2010 and 2009, the Company recorded stock-based compensation related to restricted stock awards as a component of operations and maintenance expense in the amounts of $692 and $443, respectively. The following table summarizes nonvested restricted stock transactions for the six months ended June 30, 2010:
102,918 $ 19.73
191,288 17.10
(53,837 ) 20.23
(450 ) 17.23
239,919 $ 17.53
Disclosure of compensation-related costs for share-based compensation which may include disclosure of policies, compensation plan details, allocation of stock compensation, incentive distributions, share-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.
The Company maintains qualified defined benefit pension plans, nonqualified pension plans and other postretirement benefit plans for certain of its employees. The net periodic benefit cost is based on estimated values and an extensive use of assumptions about the discount rate, expected return on plan assets, the rate of future compensation increases received by the Company's employees, mortality, turnover, and medical costs. The following tables provide the components of net periodic benefit costs:
$ 2,344 $ 2,174 $ 1,172 $ 1,050
6,440 6,263 3,220 3,150
(5,592 ) (4,658 ) (2,796 ) (2,341 )
0 (91 ) 0 (45 )
70 76 35 41
2,060 2,576 1,030 1,374
(1,685 ) (1,320 ) (888 ) (649 )
884 641 884 641
$ 4,521 $ 5,661 $ 2,657 $ 3,221
$ 610 $ 541 $ 305 $ 262
1,240 1,144 620 571
(924 ) (845 ) (462 ) (423 )
52 52 26 26
(134 ) (140 ) (67 ) (70 )
342 294 171 159
68 68 34 30
(250 ) (180 ) (129 ) (88 )
$ 1,004 $ 934 $ 498 $ 467
The Company made cash contributions of $8,863 to its defined benefit pension plans during the first six months of 2010, and intends to make cash contributions of $4,143 to the plans during the remainder of 2010. In addition, the Company made cash contributions of $191 and expects to make cash contributions of $1,494 for the funding of its other postretirement benefit plans during the remainder of 2010.
Description containing the entire pension and other postretirement benefits disclosure as a single block of text.
On June 17, 2010, the Pennsylvania Public Utility Commission granted the Company's operating subsidiary in Pennsylvania a water rate increase designed to increase total operating revenues by $23,600, on an annualized basis. The rates in effect at the time of the filing included $24,256 in Distribution System Improvement Charges ("DSIC") or 7.5% above prior base rates. Consequently, the total base rates increased by $47,856, and the DSIC was reset to zero.
During the first six months of 2010, the Company's operating divisions in New York, New Jersey, North Carolina, Ohio, Missouri, and Indiana were granted base rate increases designed to increase total operating revenues on an annual basis by approximately $10,985.
On September 23, 2008, the Texas Commission on Environmental Quality ("TCEQ") issued its final ruling with a unanimous decision approving the rate application that was filed in 2004 by the Company's operating subsidiaries in Texas to increase rates, on an annualized basis, by $11,920 over a multi-year period beginning in 2004. The application sought to increase annual revenues in phases and was accompanied by a plan to defer and amortize a portion of the Company's depreciation, operating and other tax expense over a similar multi-year period, such that the impact on operating income approximated the requested amount during the first years that the new rates were in effect. The Company commenced billing for the requested rates and implemented the deferral plan in 2004. As a result of the final order, the regulatory asset for the deferred operating costs and rate case expenses was set at $13,697. As of February 1, 2009, recovery of the regulatory assets for the deferred operating costs and rate case expenses began through two surcharge mechanisms. The final order was appealed to the TCEQ by two parties, and the TCEQ exercised its legal authority to take no action within the required period, therefore affirming the TCEQ's approval decision. Thereafter, the appealing parties filed suit against the TCEQ in an effort to appeal the order. On April 15, 2010, a hearing on the appeal of TCEQ's approval decision was held in the Travis County Texas District Court, which resulted in the TCEQ's final order being upheld by the District Court Judge. The Travis County District Court Judge's ruling is no longer subject to appeal.
This element can be used to encapsulate the entire disclosure for public utilities (including data and tables).
$ 13,039 $ 12,518 $ 6,513 $ 6,355
1,791 1,246 924 641
4,680 4,206 2,459 2,254
3,748 3,731 1,600 1,652
2,545 1,773 1,447 982
$ 25,803 $ 23,474 $ 12,943 $ 11,884
Taxes other than income taxes.
Name: wtr_TaxesOtherThanIncomeTaxesTextblock
The Company has identified fifteen operating segments and has one reportable segment named the "Regulated" segment. The reportable segment is comprised of fourteen operating segments for the Company's water and wastewater regulated utility companies which are organized by the states where we provide these services. In addition, one segment is not quantitatively significant to be reportable and is comprised of the businesses that provide on-site septic tank pumping, sludge hauling services and certain other non-regulated water and wastewater services. This segment is included as a component of "Other" in the tables below. Also included in "Other" are corporate costs that have not been allocated to the Regulated segment and intersegment eliminations.
The following tables present the Company's segment information:
$ 175,593 $ 2,851 $ 178,444 $ 164,308 $ 3,025 $ 167,333
66,523 2,787 69,310 65,643 2,906 68,549
27,179 (377 ) 26,802 25,355 (383 ) 24,972
66,038 37 66,075 58,755 109 58,864
16,342 701 17,043 16,155 86 16,241
20,009 (722 ) 19,287 17,061 (211 ) 16,850
29,797 58 29,855 25,626 227 25,853
$ 333,599 $ 5,362 $ 338,961 $ 316,039 $ 5,781 $ 321,820
132,581 4,330 136,911 131,270 4,268 135,538
53,784 (782 ) 53,002 52,136 (777 ) 51,359
115,889 870 116,759 104,188 1,442 105,630
32,565 1,367 33,932 32,052 192 32,244
(7 ) 2,046 2,039 201 12 213
33,853 (353 ) 33,500 29,328 47 29,375
49,464 1,902 51,366 43,009 1,215 44,224
140,500 267 140,767 116,364 770 117,134
$ 3,794,835 $ 3,689,689
72,544 72,908
$ 3,867,379 $ 3,762,597
In June 2009, the Financial Accounting Standards Board issued revised accounting guidance for variable interest entities, which replaces the quantitative approach for determining which reporting entity has a controlling financial interest in a variable interest entity with a qualitative approach that focuses on which reporting entity controls the most significant economic activities of the variable interest entity. The revised guidance is effective January 1, 2010. The Company adopted the revised guidance as required, and the adoption did not have an impact on the Company's consolidated results of operations or consolidated financial position.
The Company is routinely involved in various disputes, claims, lawsuits and other regulatory and legal matters, including both asserted and unasserted legal claims, in the ordinary course of business. The status of each such matter, referred to herein as a loss contingency, is reviewed and assessed in accordance with applicable accounting rules regarding the nature of the matter, the likelihood that a loss will be incurred, and the amounts involved. As of June 30, 2010, the aggregate amount of $12,863 is accrued for loss contingencies and is reported in the Company's consolidated balance sheet as other accrued liabilities and other liabilities. These accruals represent management's best estimate of probable loss (as defined in the accounting guidance) for loss contingencies. While the final outcome of these loss contingencies cannot be predicted with certainty, and unfavorable outcomes could negatively impact the Company, at this time in the opinion of management, the final resolution of these matters are not expected to have a material adverse effect on the Company's financial position, results of operations or cash flows. Further, Aqua America has insurance coverage for certain of these loss contingencies, and as of June 30, 2010, estimates that approximately $1,619 of the amount accrued for these matters are probable of recovery through insurance, which amount is also reported in the Company's consolidated balance sheet as deferred charges and other assets, net.