American Water Works Company, Inc. - 10-Q filing on 2016-11-02

Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Long-Term Debt Issued

The following long-term debt was issued during the nine months ended September 30, 2016:

Company

Type

Rate

Maturity

Amount

Other American Water subsidiaries

Private activity bonds and government

funded debt—fixed rate

1.36%

2026

Long-Term Debt Retired Through Sinking Fund Provisions, Optional Redemptions or Payments at Maturities

The following long-term debt was retired through sinking fund provisions, optional redemptions or payment at maturity during the nine months ended September 30, 2016:

Company	Type	Rate		Maturity	Amount
American Water Capital Corp. (a)	Private activity bonds and government funded debt—fixed rate	1.79%-2.90%		2021-2031	$	1
Other American Water subsidiaries	Private activity bonds and government funded debt—fixed rate	0.00%-5.30%		2016-2041		18
Other American Water subsidiaries	Mandatorily redeemable preferred stock		8.49%	2036		1
Total retirements and redemptions					$	20

(a)	American Water Capital Corp., which is a wholly owned subsidiary of the Company, has a support agreement with the Company that, under certain circumstances, is the functional equivalent of a guarantee. This indebtedness is considered “debt” for purposes of this support agreement.

Summary of Gross Fair Value Derivative Asset and Liabilities

The following table provides a summary of the gross fair value for the Company’s derivative asset and liabilities, as well as the location of the asset and liability balances in the Consolidated Balance Sheets:

Derivative Instruments

Derivative Designation

Balance Sheet Classification

September 30, 2016

December 31, 2015

Asset Derivative

Interest rate swap

Fair value hedge

Other long-term assets

Liability Derivatives

Forward starting swaps

Cash flow hedge

Other long-term liabilities

—

Interest rate swap

Economic hedge (non-designated)

Other long-term liabilities