AMERICAN STATES WATER COAWR

AMERICAN STATES WATER CO Leases Disclosure

10-KFiled Feb 18, 20262 min read
Leases
Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. As of December 31, 2025, Registrant has right-of-use assets of $6.1 million, short-term operating lease liabilities of $2.1 million and long-term operating lease liabilities of $4.4 million. Currently, Registrant does not have any financing leases.
Significant assumptions and judgments made as part of the lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to Registrant over terms similar to the lease terms.
Registrant’s leases consist of real estate and equipment leases, which are mostly GSWC’s. Most of Registrant’s leases require fixed lease payments. Some real estate leases have escalation payments which depend on an index. Variable lease costs were not material. Lease terms used to measure the lease liability include options to extend the lease if the option is reasonably certain to be exercised. Lease and non-lease components were combined to measure lease liabilities.
Registrant’s supplemental lease information is as follows (in thousands, except for weighted average data):
For The Year Ended December 31, 2025For The Year Ended December 31, 2024
Operating lease costs $2,589$2,543
Short-term lease costs$334$323
Weighted average remaining lease term (in years)3.023.87
Weighted-average discount rate4.7%4.7%
Non-cash transactions
Lease liabilities arising from obtaining right-of-use assets$302$2,210
For the years 2025, 2024 and 2023, Registrant’s consolidated rent expense was approximately $2.6 million, $2.6 million and $2.3 million, respectively. Registrant’s future minimum payments under long-term non-cancelable operating leases as of December 31, 2025 are as follows (in thousands):
2026$2,315 
20272,193 
20281,821 
2029617 
2030— 
Thereafter— 
Total lease payments6,946 
Less: imputed interest478 
Total lease obligations6,468 
Less: current obligations2,062 
Long-term lease obligations$4,406 
The consolidated operations of AWR and the operations of GSWC in regard to future minimum payments under long-term non-cancelable operating leases are not materially different.
Free Sentinel

Want the next AMERICAN STATES WATER CO leases disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment AMERICAN STATES WATER CO's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 19, 2025
2023Feb 21, 2024
2022Mar 1, 2023
2021Feb 22, 2022
2020Feb 22, 2021
2019Feb 24, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareGoodwill & IntangiblesSegmentsDebtCommitmentsStock CompensationNew Standards