AWK Growth Outlook and Military Services Strategic Value slide image

AWK Growth Outlook and Military Services Strategic Value

Reconciliation Table: Regulated Segment O&M Efficiency Ratio Regulated Segment O&M Efficiency Ratio (A Non-GAAP Unaudited Number) ($ in milions) Total operations and maintenance expense Less: FY 2010 FY 2012 FY 2014 FY 2016 FY 2018 FY 2020 FY 2021 $1,291 $1,330 $1,350 $1,504 $1,479 $1,622 $1,777 AMERICAN WATER Operations and maintenance expense Market-Based Business 257 256 Operation and maintenance expenses Other (61) (56) Total operations and maintenance expense - Regulated Businesses Less: $1,095 $1,130 Regulated purchased water expense Allocation of non operation and maintenance expenses 100 110 29 35 Impact of Freedom Industries activities Estimated impact of weather Adjusted operations and maintenance expense - Regulated Businesses (a) $966 5 $980 ཝིདྷདྡྷི – ཝིམཋཝེ་ 372 362 389 482 (44) (42) $1,112 $1,176 $1,159 (25) $1,258 122 133 149 30 31 41 185 (20) 0 0 $959 $1,015 $1,058 $1,138 ཝེཊྛིཾ་ ༣༥༠༠- $1,325 Total operating revenues $2,555 $2,854 $3,011 $3,302 $3,440 $3,777 $3,930 Less: Operating Revenues-Market Based Business Operating Revenues-Other Total pro forma operating revenues-Regulated Businesses 295 307 355 451 476 540 563 (26) (17) (18) (20) (20) (17) (17) $2.285 $2,564 $2.674 $2,871 $2,984 $3,254 $3,384 Less: Regulated Purchased Water expense* 100 110 122 122 133 Other revenue reductions for the amortization of excess accumulated defered income taxes Plus: 149 (7) 153 (104) Freedom Industries chemical spill in West Virginia Estimated impact of weathe Adjusted pro forma operating revenues-Regulated Businesses [b] 1 (47) 17 $2.186 $2.407 $2,570 $2,749 $2,851 $3,112 $3,335 Adjusted O&M efficiency ratio-Regulated Businesses (a][b] 44.2% 40.7% 36.7% 34.9% 35.6% 34.3% 34.1% Adjusted operations and maintenance expense - Regulated Businesses Less: $966 $980 $943 $959 Impact of adoption of ASU 2017-07** 39 (8) 12 Adjusted operations and maintenance expense Regulated Businesses (c) $966 $941 $951 $947 Adjusted operating revenues-Regulated Businesses $2.186 $2.407 $2,570 $2,749 Less pro forma adjustment Pro forma adjustment for impact of the TCJA*** 89 112 Adjusted pro forma operating revenues-Regulated Businesses (d) $2,097 $2,294 137 $2,433 161 $2,588 * Calculation assumes purchased water revenues approximate purchased water expenses ** Includes the impact of the Company's adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit, on January 1, 2018 *** Calculation of Estimated tax reform = Revenue Requirement with new Effective Tax Rate (taxes grossed up) - Revenue Requirement with old Effective Tax Rate Adjusted O&M efficiency ratio-Regulated Businesses (c)(d) 46.1% 41.0% 39.1% 36.6% 37
View entire presentation