Equity, Other Comprehensive Income, and Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2015

Detailed Activities of Equity and Redeemable Noncontrolling Interest

The table below provides details of activity in equity and the redeemable noncontrolling interest during the six months ended June 30, 2015.


	Southwest Gas Corporation Equity
							Accumulated												Redeemable
					Additional		Other						Non-						Noncontrolling
	Common Stock				Paid-in		Comprehensive			Retained			controlling						Interest
(In thousands, except per share amounts)	Shares		Amount		Capital		Income (Loss)			Earnings			Interest			Total			(Temporary Equity)
DECEMBER 31, 2014		46,523	$	48,153	$	851,381	$	(50,175	)	$	639,164		$	(2,257	)	$	1,486,266		$	20,042
Common stock issuances		519		519		22,241											22,760
Net income (loss)											76,932			58			76,990			(48	)
Redemption value adjustments											658						658			(658	)
Foreign currency exchange translation adj.								(1,028	)								(1,028	)		(35	)
Other comprehensive income (loss):
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax								1,416									1,416
Amounts reclassified to net income,net of tax (FSIRS)								1,037									1,037
Dividends declared
Common: $0.81 per share											(38,466	)					(38,466	)

JUNE 30, 2015		47,042	$	48,672	$	873,622	$	(48,750	)	$	678,288		$	(2,199	)	$	1,549,633		$	19,301

Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) (Thousands of dollars)
	Three Months Ended									Three Months Ended
	June 30, 2015									June 30, 2014
	Before-			Tax			Net-of-			Before-			Tax			Net-of-
	Tax			(Expense)			Tax			Tax			(Expense)			Tax
	Amount			or Benefit (1)			Amount			Amount			or Benefit (1)			Amount
Defined benefit pension plans:
Amortization of prior service cost	$	334		$	(126	)	$	208		$	88		$	(33	)	$	55
Amortization of net actuarial (gain)/loss		8,595			(3,267	)		5,328			5,914			(2,248	)		3,666
Regulatory adjustment		(7,787	)		2,959			(4,828	)		(5,177	)		1,967			(3,210	)

Pension plans other comprehensive income (loss)		1,142			(434	)		708			825			(314	)		511

FSIRS (designated hedging activities):
Amounts reclassifed into net income		836			(318	)		518			837			(318	)		519

FSIRS other comprehensive income		836			(318	)		518			837			(318	)		519

Foreign currency translation adjustments:
Translation adjustments		209			—			209			—			—			—

Foreign currency other comprehensive income (loss)		209			—			209			—			—			—

Total other comprehensive income (loss)	$	2,187		$	(752	)	$	1,435		$	1,662		$	(632	)	$	1,030


	Six Months Ended June 30, 2015									Six Months Ended June 30, 2014
	Before- Tax Amount			Tax (Expense) or Benefit (1)			Net-of- Tax Amount			Before- Tax Amount			Tax (Expense) or Benefit (1)			Net-of- Tax Amount
Defined benefit pension plans:
Amortization of prior service cost	$	667		$	(253	)	$	414		$	177		$	(67	)	$	110
Amortization of net actuarial (gain)/loss		17,191			(6,533	)		10,658			11,828			(4,495	)		7,333
Regulatory adjustment		(15,574	)		5,918			(9,656	)		(10,355	)		3,935			(6,420	)

Pension plans other comprehensive income (loss)		2,284			(868	)		1,416			1, 650			(627	)		1,023

FSIRS (designated hedging activities):
Amounts reclassifed into net income		1,672			(635	)		1,037			1,673			(636	)		1,037

FSIRS other comprehensive income		1,672			(635	)		1,037			1,673			(636	)		1,037

Foreign currency translation adjustments:
Translation adjustments		(1,063	)		—			(1,063	)		—			—			—

Foreign currency other comprehensive income (loss)		(1,063	)		—			(1,063	)		—			—			—

Total other comprehensive income (loss)	$	2,893		$	(1,503	)	$	1,390		$	3,323		$	(1,263	)	$	2,060


	Twelve Months Ended June 30, 2015									Twelve Months Ended June 30, 2014
	Before-			Tax			Net-of-			Before-			Tax			Net-of-
	Tax			(Expense)			Tax			Tax			(Expense)			Tax
	Amount			or Benefit (1)			Amount			Amount			or Benefit (1)			Amount
Defined benefit pension plans:
Net actuarial gain/(loss)	$	(173,646	)	$	65,985		$	(107,661	)	$	100,345		$	(38,131	)	$	62,214
Amortization of prior service cost		845			(321	)		524			355			(134	)		221
Amortization of net actuarial (gain)/loss		29,019			(11,027	)		17,992			28,915			(10,988	)		17,927
Prior service cost		(6,661	)		2,531			(4,130	)		—			—			—
Regulatory adjustment		135,089			(51,334	)		83,755			(118,817	)		45,150			(73,667	)

Pension plans other comprehensive income (loss)		(15,354	)		5,834			(9,520	)		10,798			(4,103	)		6,695

FSIRS (designated hedging activities):
Amounts reclassifed into net income		3,344			(1,271	)		2,073			3,345			(1,271	)		2,074

FSIRS other comprehensive income (loss)		3,344			(1,271	)		2,073			3,345			(1,271	)		2,074

Foreign currency translation adjustments:
Translation adjustments		(1,722	)		—			(1,722	)		—			—			—

Foreign currency other comprehensive income (loss)		(1,722	)		—			(1,722	)		—			—			—

Total other comprehensive income (loss)	$	(13,732	)	$	4,563		$	(9,169	)	$	14,143		$	(5,374	)	$	8,769

(1)

Tax amounts are calculated using a 38% rate. The Company has elected to indefinitely reinvest the earnings of Centuri’s Canadian subsidiaries in Canada, thus preventing deferred taxes on such earnings. As a result of this assertion, the Company is not recognizing any tax effect or presenting a tax expense or benefit for the currency translation adjustment amount reported in Other Comprehensive Income, as repatriation of earnings is not anticipated.

Rollforward of Accumulated Other Comprehensive Income

The following table represents a rollforward of AOCI, presented on the Company’s Condensed Consolidated Balance Sheets:


AOCI - Rollforward (Thousands of dollars)
	Defined Benefit Plans									FSIRS									Foreign Currency Items
	Before- Tax			Tax (Expense) Benefit			After- Tax			Before- Tax			Tax (Expense) Benefit			After- Tax			Before- Tax			Tax (Expense) Benefit		After- Tax			AOCI
Beginning Balance AOCI December 31, 2014	$	(57,211	)	$	21,740		$	(35,471	)	$	(22,688	)	$	8,621		$	(14,067	)	$	(637	)	$	—	$	(637	)	$	(50,175	)

Translation adjustments		—			—			—			—			—			—			(1,063	)		—		(1,063	)		(1,063	)

Other comprehensive income before reclassifications		—			—			—			—			—			—			(1,063	)		—		(1,063	)		(1,063	)
FSIRS amounts reclassified from AOCI (1)		—			—			—			1,672			(635	)		1,037			—			—		—			1,037
Amortization of prior service cost (2)		667			(253	)		414			—			—			—			—			—		—			414
Amortization of net actuarial loss (2)		17,191			(6,533	)		10,658			—			—			—			—			—		—			10,658
Regulatory adjustment (3)		(15,574	)		5,918			(9,656	)		—			—			—			—			—		—			(9,656	)

Net current period other comprehensive income (loss)		2,284			(868	)		1,416			1,672			(635	)		1,037			(1,063	)		—		(1,063	)		1,390
Less: Translation adjustment attributable to redeemable noncontrolling interest		—			—			—			—			—			—			(35	)		—		(35	)		(35	)

Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation		2,284			(868	)		1,416			1,672			(635	)		1,037			(1,028	)		—		(1,028	)		1,425

Ending Balance AOCI June 30, 2015	$	(54,927	)	$	20,872		$	(34,055	)	$	(21,016	)	$	7,986		$	(13,030	)	$	(1,665	)	$	—	$	(1,665	)	$	(48,750	)

(1)	The FSIRS reclassification amounts are included in the Net interest deductions line item on the Condensed Consolidated Statements of Income.

(2)	These AOCI components are included in the computation of net periodic benefit cost (see Note 2 – Components of Net Periodic Benefit Cost for additional details).

(3)	The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included in the Deferred charges and other assets line item on the Condensed Consolidated Balance Sheets).

Amount Recognized Before Income Tax Associated with Defined Benefit Plans in Accumulated Other Comprehensive Income

The following table represents amounts (before income tax impacts) associated with defined benefit plans and included in AOCI (in the table above), that have not yet been recognized in net periodic benefit cost:


Amounts Recognized in AOCI (Before Tax) (Thousands of dollars)
	June 30, 2015			December 31, 2014
Net actuarial (loss) gain	$	(421,940	)	$	(439,131	)
Prior service cost		(7,706	)		(8,373	)
Less: amount recognized in regulatory assets		374,719			390,293

Recognized in AOCI	$	(54,927	)	$	(57,211	)