Essential Utilities, Inc. Segments Disclosure
The Company identifies a business as an operating segment if: i) it engages in business activities from which it may earn revenues and incur expenses; ii) its operating results are regularly reviewed by the chief operating decision maker (“CODM”), who is the Company’s Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess its performance; and iii) it has available discrete financial information. The CODM reviews financial information, such as budget-to-actual variances and comparisons against prior period, at the operating segment level, and uses that information when making decisions about the allocation of operating and capital resources to each segment. The CODM evaluates the performance of the Company’s reportable segments based on a number of factors, the primary measure being the net income (loss) of each segment.
The Company has eleven operating segments and has two reportable segments, the Regulated Water segment and the Regulated Natural Gas segment. The Regulated Water segment is comprised of eight operating segments representing its water and wastewater regulated utility companies, which are organized by the states where the Company provides water and wastewater services. The eight water and wastewater utility operating segments are aggregated into one reportable segment, because each of these operating segments has the following similarities: economic characteristics, nature of services, production processes, customers, water distribution or wastewater collection methods, and the nature of the regulatory environment. The Regulated Natural Gas segment is comprised of one operating segment representing natural gas utility companies for which the Company provides natural gas distribution services. Each reportable segment has a segment manager, the Aqua President for the Regulated Water segment and the Peoples President for the Regulated Natural Gas segment, that reports directly to the CODM.
In addition to the Company’s two reportable segments, it includes two operating segments within the Other category below. These segments are not quantitatively significant and are comprised of its non-regulated natural gas operations and Aqua Resources. Non-regulated natural gas operations consist of utility service line protection solutions and repair services to households and the operation of gas marketing and production entities. Aqua Resources offers, through a third party, water and sewer service line protection solutions and repair services to households. In addition to these segments, Other is comprised of business activities not included in the reportable segments, corporate costs that have not been allocated to the Regulated Water and Regulated Natural Gas segments, and intersegment eliminations. Corporate costs include general and administrative expenses, and interest expense. The Company reports these corporate costs within Other as they relate to corporate-focused responsibilities and decisions and are not included in internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments.
The accounting policies of the segments are the same as those applied in in the Company’s consolidated financial statements and described in Note 1 – Summary of Significant Policies. Intersegment revenues represent natural gas sales by the Regulated Natural Gas segment to the non-regulated natural gas operations, at cost, which has a corresponding offsetting amount in purchased gas. The reportable segments’ financial results includes intercompany costs that are allocated by corporate and intercompany interest on push-down debt from corporate. All revenues of the Company are generated in the U.S., and all assets of the Company are located in the U.S.
The following table presents information about the Company’s reportable segments and reconciliations to consolidated amounts. Asset information by segment is not utilized for purposes of assessing performance or allocating resources and, as a result, such information is not presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
2025 |
| Regulated Water |
| Regulated Natural Gas |
| Total Reportable Segments |
| Other and Eliminations |
| Consolidated |
|
Revenues from external customers | $ | 1,326,629 | $ | 1,114,531 | $ | 2,441,160 | $ | 33,455 | $ | 2,474,615 |
|
Intersegment revenues |
| - |
| 3,344 |
| 3,344 |
| (3,344) |
| - |
|
Total operating revenues | $ | 1,326,629 | $ | 1,117,875 | $ | 2,444,504 | $ | 30,111 | $ | 2,474,615 |
|
Operations and maintenance expense | $ | 405,017 | $ | 227,656 | $ | 632,673 | $ | 6,931 | $ | 639,604 |
|
Purchased gas | $ | - | $ | 384,811 | $ | 384,811 | $ | 19,006 | $ | 403,817 |
|
Depreciation and amortization | $ | 257,305 | $ | 158,348 | $ | 415,653 | $ | 1,818 | $ | 417,471 |
|
Taxes other than income taxes | $ | 69,058 | $ | 19,978 | $ | 89,036 | $ | 3,736 | $ | 92,772 |
|
Interest expense, net | $ | 150,763 | $ | 107,073 | $ | 257,836 | $ | 69,542 | $ | 327,378 |
|
Allowance for funds used during construction | $ | (20,805) | $ | (5,448) | $ | (26,253) | $ | - | $ | (26,253) |
|
Gain on sale of assets (a) | $ | (1,325) | $ | - | $ | (1,325) | $ | - | $ | (1,325) |
|
Other segment items (b) | $ | 1,038 | $ | (618) | $ | 420 | $ | 917 | $ | 1,337 |
|
Provision for income taxes (benefit) | $ | 54,658 | $ | (41,300) | $ | 13,358 | $ | (9,913) | $ | 3,445 |
|
Net income (loss) | $ | 410,920 | $ | 267,375 | $ | 678,295 | $ | (61,926) | $ | 616,369 |
|
Capital expenditures | $ | 779,543 | $ | 650,437 | $ | 1,429,980 | $ | - | $ | 1,429,980 |
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
| Regulated Water |
| Regulated Natural Gas |
| Total Reportable Segments |
| Other and Eliminations |
| Consolidated |
Revenues from external customers | $ | 1,221,880 | $ | 840,453 | $ | 2,062,333 | $ | 23,780 | $ | 2,086,113 |
Intersegment revenues |
| - |
| 2,538 |
| 2,538 |
| (2,538) |
| - |
Total operating revenues | $ | 1,221,880 | $ | 842,991 | $ | 2,064,871 | $ | 21,242 | $ | 2,086,113 |
Operations and maintenance expense | $ | 381,088 | $ | 207,176 | $ | 588,264 | $ | (1,014) | $ | 587,250 |
Purchased gas | $ | - | $ | 267,226 | $ | 267,226 | $ | 9,783 | $ | 277,009 |
Depreciation and amortization | $ | 232,338 | $ | 135,814 | $ | 368,152 | $ | 1,400 | $ | 369,552 |
Taxes other than income taxes | $ | 68,006 | $ | 22,985 | $ | 90,991 | $ | 3,643 | $ | 94,634 |
Interest expense, net | $ | 140,086 | $ | 92,988 | $ | 233,074 | $ | 66,075 | $ | 299,149 |
Allowance for funds used during construction | $ | (16,713) | $ | (4,597) | $ | (21,310) | $ | - | $ | (21,310) |
Gain on sale of assets (a) | $ | (636) | $ | (91,581) | $ | (92,217) | $ | (7) | $ | (92,224) |
Other segment items (b) | $ | (1,445) | $ | (644) | $ | (2,089) | $ | 664 | $ | (1,425) |
Provision for income taxes (benefit) | $ | 68,851 | $ | (79,993) | $ | (11,142) | $ | (10,694) | $ | (21,836) |
Net income (loss) | $ | 350,305 | $ | 293,617 | $ | 643,922 | $ | (48,608) | $ | 595,314 |
Capital expenditures | $ | 726,698 | $ | 603,049 | $ | 1,329,747 | $ | - | $ | 1,329,747 |
|
|
|
|
|
|
|
|
|
|
|
2023 |
| Regulated Water |
| Regulated Natural Gas |
| Total Reportable Segments |
| Other and Eliminations |
| Consolidated |
Revenues from external customers | $ | 1,153,376 | $ | 860,586 | $ | 2,013,962 | $ | 39,862 | $ | 2,053,824 |
Intersegment revenues |
| - |
| 3,173 |
| 3,173 |
| (3,173) |
| - |
Total operating revenues | $ | 1,153,376 | $ | 863,759 | $ | 2,017,135 | $ | 36,689 | $ | 2,053,824 |
Operations and maintenance expense | $ | 368,843 | $ | 209,073 | $ | 577,916 | $ | (2,398) | $ | 575,518 |
Purchased gas | $ | - | $ | 327,548 | $ | 327,548 | $ | 24,758 | $ | 352,306 |
Depreciation and amortization | $ | 217,593 | $ | 125,263 | $ | 342,856 | $ | 839 | $ | 343,695 |
Taxes other than income taxes | $ | 62,759 | $ | 23,846 | $ | 86,605 | $ | 3,603 | $ | 90,208 |
Interest expense, net | $ | 124,680 | $ | 92,320 | $ | 217,000 | $ | 62,961 | $ | 279,961 |
Allowance for funds used during construction | $ | (14,786) | $ | (2,181) | $ | (16,967) | $ | - | $ | (16,967) |
Loss (gain) on sale of assets | $ | (624) | $ | 559 | $ | (65) | $ | - | $ | (65) |
Other segment items (b) | $ | (3,596) | $ | 121 | $ | (3,475) | $ | 862 | $ | (2,613) |
Provision for income taxes (benefit) | $ | 57,546 | $ | (113,353) | $ | (55,807) | $ | (10,638) | $ | (66,445) |
Net income (loss) | $ | 340,961 | $ | 200,563 | $ | 541,524 | $ | (43,298) | $ | 498,226 |
Capital expenditures | $ | 668,720 | $ | 527,538 | $ | 1,196,258 | $ | 2,845 | $ | 1,199,103 |
(a) Refer to Note 3 – Dispositions for additional information.
(b) Other segment items mainly consists of the non-service cost component of pension and other postretirement benefits for our regulated segments.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 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.