UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 8-K

 

 

Current Report

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 11, 2014

 

 

American Water Works Company, Inc.

(Exact name of registrant as specified in its charter)

 

 

Commission File Number: 001-34028

 

Delaware   51-0063696
(State or other jurisdiction
of incorporation)		  

(IRS Employer

Identification No.)

1025 Laurel Oak Road

Voorhees, NJ 08043

(Address of principal executive offices, including zip code)

(856) 346-8200

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 8.01. Other Events.

Each of American Water Works Company, Inc.’s and American Water Capital Corp.’s Computation of the Ratio of Earnings to Fixed Charges and Preferred Stock Dividends for the fiscal years ended December 31, 2009, December 31, 2010, December 31, 2011, December 31, 2012 and December 31, 2013 and the six months ended June 30, 2014 is attached as Exhibit 12.1 hereto and is incorporated by reference into this Current Report on Form 8-K.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit

   

Description

12.1    Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    AMERICAN WATER WORKS COMPANY, INC.

Dated: August 11, 2014

     By:  

/s/ Linda G. Sullivan

      Linda G. Sullivan
      Senior Vice President and Chief Financial Officer
EX-12.1

Exhibit 12.1

AMERICAN WATER WORKS COMPANY, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

 

     Twelve Months ended December 31,      Six Months
Ended
June 30,		  
     2009     2010      2011      2012      2013      2014  

Income (loss) from continuing operations before income taxes

    $ (106,206 )    $ 429,424       $ 503,680       $ 631,258       $ 605,470       $ 294,495   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Fixed Charges:

                 

Interest, dividends on mandatory redeemable preferred shares and amortization of debt discount and expenses and premium on all indebtedness

      306,979        325,135         321,687         316,889         314,908         150,541   

Interest factor in rentals

      12,735        13,243         11,878         9,958         8,528         3,843   

Interest costs from discontinued operations

      1,015        1,319         2,266         277         —           —     
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed charges

      320,729        339,697         335,831         327,124         323,436         154,384   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income from continuing operations plus fixed charges

      214,523        769,121         839,511         958,382         928,906         448,879   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Preferred dividend requirements

      225        225         225         153         19         —     

Ratio of pre-tax income (loss) to net income (loss)

      0.48        1.68         1.65         1.69         1.64         1.66   

Preferred dividend factor (1)

      109        379         372         258         31         —     

Total fixed charges

      320,729        339,697         335,831         327,124         323,436         154,384   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed charges and preferred dividends

      320,838        340,076         336,202         327,382         323,467         154,384   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to combined fixed charges and preferred dividends (2)

      —          2.26         2.50         2.93         2.87         2.91   

For purposes of calculating the ratio of earnings to fixed charges, earnings consists of income (loss) from continuing operations before income taxes including the effect of allowance for funds used during construction, which we refer to as AFUDC, plus fixed charges. Fixed charges consist of interest expense, amortization of debt issuance costs, and a portion of rent expense that management believes is representative of the interest component of rental expense. Fixed charges have not been reduced for the effect of AFUDC. In addition, we had no preferred stock outstanding for any period presented, and accordingly, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.

 

 

 

(1) Represents the amount of pre-tax earnings required to cover the dividends associated with preferred stock without mandatory redemption requirements.
(2) For the year ended December 31, 2009 earnings were insufficient to cover fixed charges and there was a deficiency of $106.3 million.

AMERICAN WATER CAPITAL CORP.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

 

     Twelve Months ended December 31,      Six Months
Ended
June 30,		  
     2009      2010      2011      2012      2013      2014  

Income (loss) from continuing operations before income taxes

    $ —         $ —         $ —         $ —         $ —         $ —     

Fixed Charges:

                  

Interest, dividends on mandatory redeemable preferred shares and amortization of debt discount and expenses and premium on all indebtedness

      201,033         206,011         211,982         213,835         225,511         105,403   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed charges

      201,033         206,011         211,982         213,835         225,511         105,403   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income from continuing operations plus fixed charges

      201,033         206,011         211,982         213,835         225,511         105,403   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed charges

      201,033         206,011         211,982         213,835         225,511         105,403   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed charges and preferred dividends

      201,033         206,011         211,982         213,835         225,511         105,403   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to combined fixed charges and preferred dividends

      1.00         1.00         1.00         1.00         1.00         1.00   

For purposes of calculating the ratio of earnings to fixed charges, earnings consists of income (loss) from continuing operations before income taxes including the effect of allowance for funds used during construction, which we refer to as AFUDC, plus fixed charges. Fixed charges consist of interest expense, amortization of debt issuance costs, and a portion of rent expense that management believes is representative of the interest component of rental expense. Fixed charges have not been reduced for the effect of AFUDC. In addition, we had no preferred stock outstanding for any period presented, and accordingly, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.