Anti-dilutive share repurchases

[Table of Contents](#ifb4765332bfb410ba6ce53d196f7d99d_7)American Water Works Company, Inc. and Subsidiary CompaniesConsolidated Statements of Cash Flows(In millions)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | For the Years Ended December 31, |
|   | 2021 |  | 2020 |  | 2019 |
| CASH FLOWS FROM OPERATING ACTIVITIES |   |  |   |  |   |
| Net income | $ | 1,263  |  |  | $ | 709  |  |  | $ | 621  |  |
| Adjustments to reconcile to net cash flows provided by operating activities: |   |  |   |  |   |
| Depreciation and amortization | 636  |  |  | 604  |  |  | 582  |  |
| Deferred income taxes and amortization of investment tax credits | 230  |  |  | 207  |  |  | 208  |  |
| Provision for losses on accounts receivable | 37  |  |  | 34  |  |  | 28  |  |
| (Gain) or loss on sale of businesses | (747) |  |  | —  |  |  | 34  |  |
| Pension and non-pension postretirement benefits | (41) |  |  | (14) |  |  | 17  |  |
| Other non-cash, net | (23) |  |  | (20) |  |  | (41) |  |
| Changes in assets and liabilities: |   |  |   |  |   |
| Receivables and unbilled revenues | (74) |  |  | (97) |  |  | (25) |  |
| Pension and non-pension postretirement benefit contributions | (40) |  |  | (39) |  |  | (31) |  |
| Accounts payable and accrued liabilities | 66  |  |  | (2) |  |  | 66  |  |
| Other assets and liabilities, net | 134  |  |  | 44  |  |  | (76) |  |
| Net cash provided by operating activities | 1,441  |  |  | 1,426  |  |  | 1,383  |  |
| CASH FLOWS FROM INVESTING ACTIVITIES |   |  |   |  |   |
| Capital expenditures | (1,764) |  |  | (1,822) |  |  | (1,654) |  |
| Acquisitions, net of cash acquired | (135) |  |  | (135) |  |  | (235) |  |
| Proceeds from sale of assets, net of cash on hand | 472  |  |  | 2  |  |  | 48  |  |
| Removal costs from property, plant and equipment retirements, net | (109) |  |  | (106) |  |  | (104) |  |
| Net cash used in investing activities | (1,536) |  |  | (2,061) |  |  | (1,945) |  |
| CASH FLOWS FROM FINANCING ACTIVITIES |   |  |   |  |   |
| Proceeds from long-term debt | 1,118  |  |  | 1,334  |  |  | 1,530  |  |
| Repayments of long-term debt | (372) |  |  | (342) |  |  | (495) |  |
| (Repayments of) proceeds from term loan | (500) |  |  | 500  |  |  | —  |  |
| Net short-term borrowings with maturities less than three months | (198) |  |  | (5) |  |  | (178) |  |
| (Remittances) proceeds from issuances of employee stock plans and direct stock purchase plan, net of taxes paid of $18, $17 and $11 in 2021, 2020 and 2019, respectively | (1) |  |  | 9  |  |  | 15  |  |
| Advances and contributions in aid of construction, net of refunds of $25, $24 and $30 in 2021, 2020 and 2019, respectively | 62  |  |  | 28  |  |  | 26  |  |
| Debt issuance costs and make-whole premium on early debt redemption | (26) |  |  | (15) |  |  | (15) |  |
| Dividends paid | (428) |  |  | (389) |  |  | (353) |  |
| Anti-dilutive share repurchases | —  |  |  | —  |  |  | (36) |  |
| Net cash (used in) provided by financing activities | (345) |  |  | 1,120  |  |  | 494  |  |
| Net (decrease) increase in cash, cash equivalents and restricted funds | (440) |  |  | 485  |  |  | (68) |  |
| Cash, cash equivalents and restricted funds at beginning of period | 576  |  |  | 91  |  |  | 159  |  |
| Cash, cash equivalents and restricted funds at end of period | $ | 136  |  |  | $ | 576  |  |  | $ | 91  |  |
| Cash paid during the year for: |   |  |   |  |   |
| Interest, net of capitalized amount | $ | 389  |  |  | $ | 382  |  |  | $ | 383  |  |
| Income taxes, net of refunds of $6, $2 and $4 in 2021, 2020 and 2019, respectively | $ | 1  |  |  | $ | 7  |  |  | $ | 12  |  |
| Non-cash investing activity: |   |  |   |  |   |
| Capital expenditures acquired on account but unpaid as of year end | $ | 292  |  |  | $ | 221  |  |  | $ | 235  |  |
| Seller promissory note from the sale of the Homeowner Services Group | $ | 720  |  |  | $ | —  |  |  | $ | —  |  |
| Contingent cash payment from the sale of the Homeowner Services Group | $ | 75  |  |  | $ | —  |  |  | $ | —  |  |

The accompanying notes are an integral part of these Consolidated Financial Statements.86
