be effective for the Company for the year ending December 31, 2019. The Company is currently
in the process of evaluating the impact of adoption of this ASU on the financial statements.
Leases
In February 2016, the FASB issued ASU 2016-02, Leases. The ASU requires all leases with
lease terms more than 12 months to be capitalized as a right of use asset and lease liability on
the balance sheet at the date of lease commencement. Leases will be classified as either
finance leases or operating leases. This distinction will be relevant for the pattern of expense
recognition in the income statement. This ASU will be effective for the Company for the year
ending December 31, 2020. The Company is currently in the process of evaluating the impact
of adoption of this ASU on the financial statements.
Credit Losses
In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial
Instruments. The ASU requires a financial asset (including trade receivables) measured at
amortized cost basis to be presented at the net amount expected to be collected. Thus, the
income statement will reflect the measurement of credit losses for newly-recognized
financial assets as well as the expected increases or decreases of expected credit losses that
have taken place during the period. This ASU will be effective for the Company for the year
ending December 31, 2021. The Company is currently in the process of evaluating the impact
of adoption of this ASU on the financial statements.
Note 2 — Property, Plant and Equipment
The components of property, plant and equipment as of December 31, 2017 and 2016 were
as follows:
Useful Lives
(in thousands) 2017 2016 (in years)
Utility Property:
Land and land rights $ 3,305 $ 3,079 -
Source of supply 65,608 61,450 3-70
Pumping and purification 31,075 30,851 7-64
Transmission and distribution, including 161,193 145,202
services, meters and hydrants 15-91
General and other equipment 16,541 15,000 7-75
Intangible plant 790 790 20
Construction work in progress 1,978 10,022
Total utility property 280,490 266,394
Total non-utility property 5 5 5-10
Total property, plant and equipment 280,495 266,399
Less accumulated depreciation (69,997) (64,701)
Property, plant and equipment, net $ 210,498 $ 201,698
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