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Revenue Recognition
 9 Months Ended
Sep. 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 September 30, 2026:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services:
Residential$762 $— $762 
Commercial297 — 297 
Fire service49 — 49 
Industrial60 — 60 
Public and other95 95 
Total water services1,263 — 1,263 
Wastewater services:
Residential81 — 81 
Commercial26 — 26 
Industrial3 — 3 
Public and other10 10 
Total wastewater services120 — 120 
Miscellaneous utility charges12 — 12 
Alternative revenue programs— 7 7 
Lease contract revenue— 1 1 
Total Regulated Businesses1,395 8 1,403 
Other107 — 107 
Total operating revenues$1,502 $8 $1,510 
(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 September 30, 2025:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services:
Residential$739 $— $739 
Commercial287 — 287 
Fire service46 — 46 
Industrial55 — 55 
Public and other93 — 93 
Total water services1,220 — 1,220 
Wastewater services:
Residential75 — 75 
Commercial25 — 25 
Industrial7 — 7 
Public and other6 — 6 
Total wastewater services113 — 113 
Miscellaneous utility charges13 — 13 
Alternative revenue programs— (4)(4)
Lease contract revenue— 1 1 
Total Regulated Businesses1,346 (3)1,343 
Other108 — 108 
Total operating revenues$1,454 $(3)$1,451 
(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 nine months ended September 30, 2026:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services:
Residential$2,044 $— $2,044 
Commercial785 — 785 
Fire service146 — 146 
Industrial164 — 164 
Public and other250 — 250 
Total water services3,389 — 3,389 
Wastewater services:
Residential229 — 229 
Commercial73 — 73 
Industrial8 — 8 
Public and other30 — 30 
Total wastewater services340 — 340 
Miscellaneous utility charges36 — 36 
Alternative revenue programs— 13 13 
Lease contract revenue— 4 4 
Total Regulated Businesses3,765 17 3,782 
Other290 — 290 
Total operating revenues$4,055 $17 $4,072 
(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 nine months ended September 30, 2025:
Revenues from Contracts with CustomersOther Revenues Not from Contracts with Customers (a)Total Operating Revenues
Regulated Businesses:
Water services:
Residential$1,936 $— $1,936 
Commercial742 — 742 
Fire service139 — 139 
Industrial146 — 146 
Public and other238 — 238 
Total water services3,201 — 3,201 
Wastewater services:
Residential214 — 214 
Commercial64 — 64 
Industrial17 — 17 
Public and other21 — 21 
Total wastewater services316 — 316 
Miscellaneous utility charges38 — 38 
Alternative revenue programs— 11 11 
Lease contract revenue— 4 4 
Total Regulated Businesses3,555 15 3,570 
Other300 (1)299 
Total operating revenues$3,855 $14 $3,869 
(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. MSG contract assets and contract liabilities can fluctuate because of differences in the timing and size of projects under the contracts, the timing of expected billings or the timing of cash payments received from the U.S. government.
Contract assets of $52 million and $171 million are included in Unbilled revenues on the Consolidated Balance Sheets as of September 30, 2026, and December 31, 2025, respectively. Also, contract assets of $103 million and $5 million are included in other long-term assets on the Consolidated Balance Sheets as of September 30, 2026, and December 31, 2025, respectively. Contract liabilities of $12 million and $19 million are included in other current liabilities on the Consolidated Balance Sheets as of September 30, 2026, and December 31, 2025, respectively. Also, contract liabilities of $34 million and $19 million are included in other long-term liabilities on the Consolidated Balance Sheets as of September 30, 2026, and December 31, 2025, respectively. Revenues recognized for the nine months ended September 30, 2026 and 2025, from amounts included in contract liabilities were $62 million and $72 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 September 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 2050 and 2073 and have RPOs of $7.4 billion as of September 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 $512 million as of September 30, 2026, as measured by estimated remaining contract revenue.