Note 4 – Property, Plant and Equipment

December 31,

2022

2021

Approximate Range of Useful Lives

Weighted Average Useful Life

Regulated Water segment:

Utility plant and equipment

Mains and accessories

$

4,213,197 

$

4,014,507 

26-90 years

72 years

Services, hydrants, treatment plants and reservoirs

2,910,496 

2,672,186 

5-89 years

56 years

Operations structures and water tanks

388,596 

376,880 

15-80 years

47 years

Miscellaneous pumping and purification equipment

1,131,975 

1,011,487 

7-76 years

41 years

Meters, transportation and other operating equipment

1,045,053 

980,208 

5-84 years

28 years

Land and other non-depreciable assets

133,618 

116,888 

-

-

Utility plant and equipment - regulated water segment

9,822,935 

9,172,156 

-

-

Utility construction work in progress

366,777 

304,373 

-

-

Net utility plant acquisition adjustment

(6,076)

(9,055)

10-53 years

22 years

Non-utility plant and equipment

20,561 

21,098 

17-64 years

58 years

Property, Plant and Equipment - Regulated Water segment

10,204,197 

9,488,572 

Regulated Natural Gas segment:

Natural gas transmission

398,658 

365,051 

24-93 years

68 years

Natural gas storage

61,639 

60,985 

5-85 years

45 years

Natural gas gathering and processing

144,337 

131,237 

5-77 years

59 years

Natural gas distribution

2,206,434 

1,874,040 

25-78 years

63 years

Meters, transportation and other operating equipment

568,305 

588,716 

5-65 years

24 years

Land and other non-depreciable assets

4,187 

3,872 

-

-

Utility plant and equipment - Regulated Natural Gas segment

3,383,560 

3,023,901 

Utility construction work-in-progress

149,630 

97,903 

-

-

Property, plant and equipment - Regulated Natural Gas segment

3,533,190 

3,121,804 

Total property, plant and equipment

$

13,737,387 

$

12,610,376 

Historical Timeline

Fiscal YearFiled
2022Mar 1, 2023Showing above
2021Mar 1, 2022
2020Mar 1, 2021
2019Feb 28, 2020
2018Feb 26, 2019
2017Feb 28, 2018
2016Feb 24, 2017
2015Feb 26, 2016

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.