American Water Works Company, Inc.AWK
American Water Works Company, Inc. Segments Disclosure
Note 20: Segment Information
The Company’s operating segments are comprised of its businesses which generate revenue, incur expense and have separate financial information which is regularly used by the chief operating decision maker to make operating decisions, assess performance and allocate resources. The Company operates its businesses primarily through one reportable segment, the Regulated Businesses segment. The Regulated Businesses segment is the largest component of the Company’s business and includes subsidiaries that provide water and wastewater services to customers in 14 states.
The Company also operates other businesses, primarily MSG, which provide water and wastewater services to the U.S. government on military installations, as well as municipalities. These other businesses do not meet the criteria of a reportable segment in accordance with GAAP, and are collectively presented throughout this Annual Report on Form 10-K within “Other,” which is consistent with how management assesses the results of these businesses.
The accounting policies of the segments are the same as those described in Note 2—Significant Accounting Policies. The Regulated Businesses segment includes intercompany costs that are allocated by Service Company and intercompany interest that is charged by AWCC, both of which are eliminated to reconcile to the Consolidated Statements of Operations. Inter-segment revenues include the sale of water from a regulated subsidiary to subsidiaries within Other, leased office space, and furniture and equipment provided by subsidiaries within Other to regulated subsidiaries. Other also includes corporate costs that are not allocated to the Company’s Regulated Businesses, interest income related to the secured seller promissory note from the sale of HOS, income from assets not associated with the Regulated Businesses, eliminations of inter-segment transactions and fair value adjustments related to acquisitions that have not been allocated to the Regulated Businesses segment. The adjustments related to the acquisitions are reported in Other as they are excluded from segment performance measures evaluated by management.
The Company’s chief operating decision maker is the Chief Executive Officer. The chief operating decision maker uses segment net income or loss to evaluate profit generated from segment assets when making decisions about allocating resources. The chief operating decision maker also uses segment net income to monitor budget versus actual results to assess the performance of the segment.
Presented in the tables below is summarized segment information as of and for the years ended December 31:
| 2025 | |||||||||||||||||
| Regulated Businesses | Other | Consolidated | |||||||||||||||
| Operating revenues | $ | 4,723 | $ | 417 | $ | 5,140 | |||||||||||
| Less: | |||||||||||||||||
| Operation and maintenance (a) | 1,642 | 377 | 2,019 | ||||||||||||||
| Other segment items (b) | 271 | 9 | 280 | ||||||||||||||
| Depreciation and amortization | 883 | 11 | 894 | ||||||||||||||
| Interest expense | 474 | 141 | 615 | ||||||||||||||
| Interest income | (5) | (85) | (90) | ||||||||||||||
| Provision for (benefit from) income taxes | 321 | (10) | 311 | ||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 1,137 | $ | (26) | $ | 1,111 | |||||||||||
| Total assets | $ | 32,649 | $ | 2,793 | $ | 35,442 | |||||||||||
| Capital expenditures | $ | 3,112 | $ | 14 | $ | 3,126 | |||||||||||
(a)Significant segment expense.
(b)Other segment items included in segment net income includes General taxes, Non-operating benefit costs, net, and Other income (expense), net, primarily Allowance for other funds used during construction.
| 2024 | |||||||||||||||||
| Regulated Businesses | Other | Consolidated | |||||||||||||||
| Operating revenues | $ | 4,296 | $ | 388 | $ | 4,684 | |||||||||||
| Less: | |||||||||||||||||
| Operation and maintenance (a) | 1,517 | 341 | 1,858 | ||||||||||||||
| Other segment items (b) | 241 | 9 | 250 | ||||||||||||||
| Depreciation and amortization | 772 | 16 | 788 | ||||||||||||||
| Interest expense | 416 | 107 | 523 | ||||||||||||||
| Interest income | (17) | (77) | (94) | ||||||||||||||
| Provision for income taxes | 302 | 6 | 308 | ||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 1,065 | $ | (14) | $ | 1,051 | |||||||||||
| Total assets | $ | 29,941 | $ | 2,889 | $ | 32,830 | |||||||||||
| Capital expenditures | $ | 2,838 | $ | 18 | $ | 2,856 | |||||||||||
(a)Significant segment expense.
(b)Other segment items included in segment net income includes General taxes, Non-operating benefit costs, net, and Other income (expense), net, primarily Allowance for other funds used during construction.
| 2023 | |||||||||||||||||
| Regulated Businesses | Other | Consolidated | |||||||||||||||
| Operating revenues | $ | 3,920 | $ | 314 | $ | 4,234 | |||||||||||
| Less: | |||||||||||||||||
| Operation and maintenance (a) | 1,441 | 279 | 1,720 | ||||||||||||||
| Other segment items (b) | 220 | 7 | 227 | ||||||||||||||
| Depreciation and amortization | 693 | 11 | 704 | ||||||||||||||
| Interest expense | 364 | 96 | 460 | ||||||||||||||
| Interest income | (28) | (45) | (73) | ||||||||||||||
| Provision for (benefit from) income taxes | 259 | (7) | 252 | ||||||||||||||
| Net income (loss) attributable to common shareholders | $ | 971 | $ | (27) | $ | 944 | |||||||||||
| Total assets | $ | 27,480 | $ | 2,818 | $ | 30,298 | |||||||||||
| Capital expenditures | $ | 2,551 | $ | 24 | $ | 2,575 | |||||||||||
(a)Significant segment expense.
(b)Other segment items included in segment net income includes General taxes, Other operating expenses, Non-operating benefit costs, net, and Other income (expense), net, primarily Allowance for other funds used during construction.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 15, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 19, 2019 | |
| 2017 | Feb 20, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.