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Revenue Recognition
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 4: Revenue Recognition
Disaggregated Revenues
The Company’s primary business involves the ownership of utilities that provide water and wastewater services to residential, commercial, industrial, public authority, fire service and sale for resale customers, collectively presented as the “Regulated Businesses.” The Company also operates other businesses that provide water and wastewater services to the U.S. government on military installations, as well as municipalities, collectively presented throughout this Form 10-Q within “Other.”
Presented in the table below are operating revenues disaggregated for the three months ended June 30, 2026:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services:
Residential$689 $— $689 
Commercial259 — 259 
Fire service49 — 49 
Industrial56 — 56 
Public and other85 — 85 
Total water services1,138 — 1,138 
Wastewater services:
Residential74 — 74 
Commercial25 — 25 
Industrial3 — 3 
Public and other11 — 11 
Total wastewater services113 — 113 
Miscellaneous utility charges12 — 12 
Alternative revenue programs— 4 4 
Lease contract revenue— 1 1 
Total Regulated Businesses1,263 5 1,268 
Other87 — 87 
Total operating revenues$1,350 $5 $1,355 
(a)Includes revenues associated with alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of Accounting Standards Codification Topic 606, Revenue From Contracts With Customers (“ASC 606”), and accounted for under other existing GAAP.
Presented in the table below are operating revenues disaggregated for the three months ended June 30, 2025:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services:
Residential$637 $— $637 
Commercial243 — 243 
Fire service48 — 48 
Industrial46 — 46 
Public and other78 — 78 
Total water services1,052 — 1,052 
Wastewater services:
Residential71 — 71 
Commercial21 — 21 
Industrial5 — 5 
Public and other10 — 10 
Total wastewater services107 — 107 
Miscellaneous utility charges14 — 14 
Alternative revenue programs— 4 4 
Lease contract revenue— 1 1 
Total Regulated Businesses1,173 5 1,178 
Other99 (1)98 
Total operating revenues$1,272 $4 $1,276 
(a)Includes revenues associated with alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP.
Presented in the table below are operating revenues disaggregated for the six months ended June 30, 2026:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services: 
Residential$1,282 $— $1,282 
Commercial488 — 488 
Fire service97 — 97 
Industrial104 — 104 
Public and other155 — 155 
Total water services2,126 — 2,126 
Wastewater services: 
Residential148 — 148 
Commercial47 — 47 
Industrial5 — 5 
Public and other20 — 20 
Total wastewater services220 — 220 
Miscellaneous utility charges24 — 24 
Alternative revenue programs— 6 6 
Lease contract revenue— 3 3 
Total Regulated Businesses2,370 9 2,379 
Other183 — 183 
Total operating revenues$2,553 $9 $2,562 
(a)Includes revenues associated with alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP.
Presented in the table below are operating revenues disaggregated for the six months ended June 30, 2025:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services:
Residential$1,197 $— $1,197 
Commercial455 — 455 
Fire service93 — 93 
Industrial91 — 91 
Public and other145 — 145 
Total water services1,981 — 1,981 
Wastewater services:
Residential139 — 139 
Commercial39 — 39 
Industrial10 — 10 
Public and other20 — 20 
Total wastewater services208 — 208 
Miscellaneous utility charges25 — 25 
Alternative revenue programs— 10 10 
Lease contract revenue— 3 3 
Total Regulated Businesses2,214 13 2,227 
Other192 (1)191 
Total operating revenues$2,406 $12 $2,418 
(a)Includes revenues associated with alternative revenue programs, lease contracts and intercompany rent, which are outside the scope of ASC 606, and accounted for under other existing GAAP.
Contract Balances
Contract assets and contract liabilities are the result of timing differences between revenue recognition, billings, and cash collections. In the Company’s Military Services Group (“MSG”), certain contracts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. Contract assets are recorded when billing occurs subsequent to revenue recognition and are reclassified to accounts receivable when billed and the right to consideration becomes unconditional. Contract liabilities are recorded when the Company receives advances from customers prior to satisfying contractual performance obligations, particularly for construction contracts, and are recognized as revenue when the associated performance obligations are satisfied.
Contract assets of $188 million and $171 million are included in Unbilled revenues on the Consolidated Balance Sheets as of June 30, 2026, and December 31, 2025, respectively. Also, contract assets of $4 million and $5 million are included in other long-term assets on the Consolidated Balance Sheets as of June 30, 2026, and December 31, 2025, respectively. Contract liabilities of $24 million and $19 million are included in other current liabilities on the Consolidated Balance Sheets as of June 30, 2026, and December 31, 2025, respectively. Also, contract liabilities of $17 million and $19 million are included in other long-term liabilities on the Consolidated Balance Sheets as of June 30, 2026, and December 31, 2025, respectively. Revenues recognized for the six months ended June 30, 2026 and 2025, from amounts included in contract liabilities were $42 million and $46 million, respectively.
Remaining Performance Obligations
Remaining performance obligations (“RPOs”) represent revenues the Company expects to recognize in the future from contracts that are in progress. The Company enters into agreements for the provision of services to water and wastewater facilities for the U.S. military, municipalities and other customers. As of June 30, 2026, the Company’s operation and maintenance (“O&M”) and capital improvement contracts have RPOs. Contracts with the U.S. government for work on various military installations expire between 2051 and 2073 and have RPOs of $7.4 billion as of June 30, 2026, as measured by estimated remaining contract revenue. Such contracts are subject to customary termination provisions held by the U.S. government, prior to the agreed-upon contract expiration. Contracts with municipalities and commercial customers expire between 2031 and 2038 and have RPOs of $521 million as of June 30, 2026, as measured by estimated remaining contract revenue.