American Water Works
AWK
Delayed Nyse - 08/17 10:00:18 pm
89.49USD
+0.6%

AMERICAN WATER WORKS COMPANY, INC. : Results of Operations and Financial Condition (form 8-K)

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01/02/2018 | 03:50 pm

Item 2.02. Results of Operations and Financial Condition.



Information contained in Item 7.01 below, including Exhibit 99.1 hereto, with
respect to the fiscal year ended December 31, 2017 of American Water Works
Company, Inc.
(the "Company"), is incorporated by reference herein.
The information furnished in response to this Item 2.02, including Exhibit 99.1
hereto, shall not be deemed to be "filed" for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it
be deemed to be incorporated by reference into any filing under the Securities
Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as
shall be expressly set forth by specific reference in such filing.
Item 7.01. Regulation FD.



Enactment of the Tax Cuts and Jobs Act



On December 11, 2017, the Company furnished to the Securities and Exchange
Commission
a current report on Form 8-K and issued a press release that (i)
included information regarding the Company's GAAP and adjusted earnings per
share guidance for the 2017 fiscal year; (ii) provided GAAP earnings per share
and other financial and operational guidance for the 2018 fiscal year; and (iii)
provided a projected range for its compound annual growth rate in earnings per
share and other financial and operational guidance for the five-year period from
2018 to 2022 (collectively, the "Company Guidance"). On December 22, 2017,
President Donald J. Trump signed into law what is commonly referred to as the
Tax Cuts and Jobs Act (the "TCJA"), which, among other things, enacted
significant changes to the Internal Revenue Code of 1986, as amended, including
a reduction in the maximum U.S. federal corporate income tax rate from 35% to
21% as of January 1, 2018, and certain other provisions related specifically to
the public utility industry, most significantly allowing the continuation of
certain interest expense deductibility and excluding 100% expensing of capital
investments. When issued, the Company Guidance did not, and it currently does
not, take into account or reflect the changes in law set forth in the TCJA.



On January 2, 2018, the Company issued a press release announcing that the
enactment of the TCJA, and the adoption or issuance of any further rules,
regulations, interpretations and guidance by the U.S. Department of the Treasury
with respect thereto (collectively, the "Related Interpretations"), may
materially impact the Company's guidance and results of operations to be
reported for fiscal 2017, and its expectations for future financial and
operational performance contained in the Company Guidance, as well as the
estimates, assumptions and sensitivities upon which the Company Guidance was
based. The Company cannot currently estimate or quantify the impact of the
enactment of the TCJA or any Related Interpretations, if and when issued, on the
Company Guidance.



The Company is required to revalue its deferred tax assets and liabilities,
including its U.S. federal income tax net operating losses, at the new federal
corporate income tax rate as of the date of enactment of the TCJA, or December
22, 2017
. Most of the Company's consolidated deferred tax assets and
liabilities, as well as a portion of its U.S. federal net operating losses, are
held at the Company's utility subsidiaries. The majority of the deferred tax
assets and liabilities at the utility subsidiaries are subject to a
normalization method of accounting pursuant to the Code and/or applicable public
utility commission regulation. As a result, the revaluation of the utility
subsidiaries' net deferred taxes is expected to result in a regulatory liability
that would be returned to utility customers over the remaining life of the
related assets and liabilities and would not be expected to materially impact
the Company's results of operations under the normalization process. The
revaluation of deferred tax assets and U.S. federal net operating losses held at
the parent company and other non-utility subsidiaries is expected to result in a
potentially material charge to the Company's results of operations for fiscal
2017. The Company will continue to assess the impact of the TCJA and any Related
Interpretations, if and when issued, on the Company Guidance and the Company's
other forward-looking information, as well as the regulatory treatment of the
TCJA in each of its 16 regulatory jurisdictions. The Company expects to provide
an estimate of the impacts of the TCJA in conjunction with the filing of its
Annual Report on Form 10-K for the year ended December 31, 2017 and related
disclosures, expected in February 2018.



The information furnished in response to this Item 7.01, including Exhibit 99.1
hereto, shall not be deemed to be "filed" for purposes of Section 18 of the
Exchange Act, nor shall it be deemed to be incorporated by reference into any
filing under the Securities Act or the Exchange Act, except as shall be
expressly set forth by specific reference in such filing.



Cautionary Statement Concerning Forward-Looking Statements
Certain statements included in this Current Report on Form 8-K are
forward-looking statements within the meaning of Section 27A of the Securities
Act, Section 21E of the Exchange Act, and the Private Securities Litigation
Reform Act of 1995. In some cases, these forward-looking statements can be
identified by words with prospective meanings such as "intend,"



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"plan," "estimate," "believe," "anticipate," "expect," "predict," "project,"
"assume," "forecast," "outlook," "future," "pending," "goal," "objective,"
"potential," "continue," "seek to," "may," "can," "will," "should" and "could,"
or the negative of such terms or other variations or similar expressions.
Forward-looking statements relate to, among other things, the impact and effect
of the TCJA and any Related Interpretations, if and when issued, on the Company
Guidance, and the related estimates, assumptions and sensitivities on which the
Company Guidance was based, as well as on the Company's results of operations to
be reported for fiscal 2017. These forward-looking statements are predictions
based on the Company's current expectations and assumptions regarding future
events, including the impact of the TCJA and the issuance of any Related
Interpretations. They are not guarantees or assurances of any outcomes,
performance or achievements, and readers are cautioned not to place undue
reliance upon them. The forward-looking statements are subject to a number of
estimates and assumptions, and known and unknown risks, uncertainties and other
factors. Actual results may differ materially from those discussed in the
forward-looking statements included in this Current Report on Form 8-K as a
result of the factors discussed in the Company's Form 10-K for the year ended
December 31, 2016, and in other filings with the SEC, and the additional risks
and uncertainties described herein and in Exhibit 99.1 hereto.
These forward-looking statements are qualified by, and should be read together
with, the risks and uncertainties set forth above and the risk factors included
in the Company's annual and quarterly reports as filed with the SEC, and readers
should refer to such risks, uncertainties and risk factors in evaluating such
forward-looking statements. Any forward-looking statements speak only as of the
date of this Current Report on Form 8-K. The Company does not have any
obligation or intention to update or revise any forward-looking statement,
whether as a result of new information, future events, changed circumstances or
otherwise, except as otherwise required by the federal securities laws. New
factors emerge from time to time, and it is not possible for us to predict all
such factors. Furthermore, it may not be possible to assess the impact of any
such factor on the Company's or its subsidiaries' businesses, either viewed
independently or together, or the extent to which any factor, or combination of
factors, may cause results to differ materially from those contained in any
forward-looking statement. The foregoing factors should not be construed as
exhaustive.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.

The following exhibit has been furnished herewith:
Exhibit
Number Description
99.1 Press Release, dated January 2, 2018, issued by the Company .







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