PENNICHUCK CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 1 — Description of Business and Summary of Significant Accounting Policies
Description of Business:
Pennichuck Corporation (our “Company,” “we,” or “our’) is a holding company
headquartered in Merrimack, New Hampshire with five wholly owned operating subsidiaries:
Pennichuck Water Works, Inc., (“Pennichuck Water”) Pennichuck East Utility, Inc.,
(“Pennichuck East”) and Pittsfield Aqueduct Company, Inc. (“PAC”) (collectively referred to
as our Company’s “utility subsidiaries”), which are involved in regulated water supply and
distribution to customers in New Hampshire; Pennichuck Water Service Corporation
(“Service Corporation”) which conducts non-regulated water-related services; and The
Southwood Corporation (“Southwood”) which owns several parcels of undeveloped land.
Our Company’s utility subsidiaries are engaged principally in the collection, storage, treat-
ment and distribution of potable water to approximately 35,400 customers throughout the
State of New Hampshire. The utility subsidiaries, which are regulated by the New Hampshire
Public Utilities Commission (the “NHPUC”), are subject to the provisions of Accounting
Standards Codification (“ASC”) Topic 980 “Regulated Operations.”
Summary of Significant Accounting Policies:
Basis of Presentation
The accompanying consolidated financial statements include the accounts of our Company
and its wholly owned subsidiaries. All significant intercompany transactions have been elimi-
nated in consolidation.
Use of Estimates in the Preparation of Consolidated Financial Statements
The preparation of consolidated financial statements in conformity with accounting
principles generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure
of contingent assets and liabilities at the date of the consolidated financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
Property, Plant and Equipment
Property, plant and equipment, which includes principally the water utility assets of our
Company’s utility subsidiaries, is recorded at cost plus an allowance for funds used during
construction on major, long-term projects and includes property funded with contributions in
aid of construction.
