XML 38 R25.htm IDEA: XBRL DOCUMENT v3.10.0.1
Equity, Other Comprehensive Income, and Accumulated Other Comprehensive Income (Tables)
 6 Months Ended
Jun. 30, 2018
Detailed Activities of Equity and Redeemable Noncontrolling Interest

The table below provides details of activity in equity and the noncontrolling interest for Southwest Gas Holdings, Inc. on a consolidated basis during the six months ended June 30, 2018.

 

    Southwest Gas Holdings, Inc. Equity              
                      Accumulated                    
                Additional     Other           Non-        
    Common Stock     Paid-in     Comprehensive     Retained     controlling        

(In thousands, except per share amounts)

   Shares     Amount     Capital     Income (Loss)     Earnings     Interest     Total  

DECEMBER 31, 2017

     48,090     $ 49,720     $ 955,332     $ (47,682 )    $ 857,398     $ (2,365 )    $ 1,812,403  

Common stock issuances

     1,036       1,036       68,886             69,922  

Net income (loss)

             100,642       (797 )      99,845  

Foreign currency exchange translation adj.

           (1,601 )          (1,601 ) 

Other comprehensive income (loss):

              

Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax

           1,792           1,792  

Amounts reclassified to net income, net of tax (FSIRS)

           1,271           1,271  

Reclassification of excess deferred taxes (a)

           (9,300 )      9,300         —    

Elimination of shares from noncontrolling interest (b)

         (2,710 )          2,710       —    

Dividends declared

              

Common: $0.52 per share

             (51,065 )        (51,065 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

JUNE 30, 2018

     49,126     $ 50,756     $ 1,021,508     $ (55,520 )    $ 916,275     $ (452 )    $ 1,932,567  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a)

Release of excess deferred taxes accumulated prior to December 22, 2017 (date of enactment of the TCJA), as a result of the adoption of ASU 2018-02, which permitted such release.
(b)

Centuri, through its subsidiary, NPL, has historically held a 65% ownership interest in IntelliChoice Energy, LLC (“ICE”). A residual interest of 35% has been held by a third party. During the second quarter of 2018, an additional $1 million of capital was contributed by NPL, thereby increasing NPL’s ownership interest to 95%. The carrying amount of the noncontrolling interest has been adjusted with a corresponding charge to Additional paid-in capital on the Company’s Condensed Consolidated Balance Sheet.
Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss)

Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss)

(Thousands of dollars)

 

     Three Months Ended     Three Months Ended  
     June 30, 2018     June 30, 2017  
     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     $ (80 )    $ 254     $ 334     $ (127 )    $ 207  

Amortization of net actuarial (gain)/loss

      8,404       (2,017 )      6,387       6,361       (2,417 )      3,944  

Regulatory adjustment

      (7,559 )      1,815       (5,744 )      (5,735 )      2,179       (3,556 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Pension plans other comprehensive income

      1,179       (282 )      897       960       (365 )      595  

FSIRS (designated hedging activities):

             

Amounts reclassifed into net income

      836       (200 )      636       836       (318 )      518  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

FSIRS other comprehensive income

      836       (200 )      636       836       (318 )      518  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other comprehensive income - Southwest Gas Corporation

      2,015       (482 )      1,533       1,796       (683 )      1,113  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Foreign currency translation adjustments:

             

Translation adjustments

      (690 )      —         (690 )      629       —         629  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Foreign currency other comprehensive income (loss)

      (690 )      —         (690 )      629       —         629  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other comprehensive income - Southwest Gas Holdings, Inc.

    $ 1,325     $ (482 )    $ 843     $ 2,425     $ (683 )    $ 1,742  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     Six Months Ended     Six Months Ended  
     June 30, 2018     June 30, 2017  
     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

    $ 668     $ (160 )    $ 508     $ 668     $ (254 )    $ 414  

Amortization of net actuarial (gain)/loss

      16,808       (4,034 )      12,774       12,722       (4,834 )      7,888  

Regulatory adjustment

      (15,119 )      3,629       (11,490 )      (11,470 )      4,358       (7,112 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Pension plans other comprehensive income

      2,357       (565 )      1,792       1,920       (730 )      1,190  

FSIRS (designated hedging activities):

             

Amounts reclassifed into net income

      1,673       (402 )      1,271       1,672       (636 )      1,036  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

FSIRS other comprehensive income

      1,673       (402 )      1,271       1,672       (636 )      1,036  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other comprehensive income - Southwest Gas Corporation

      4,030       (967 )      3,063       3,592       (1,366 )      2,226  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Foreign currency translation adjustments:

             

Translation adjustments

      (1,601 )      —         (1,601 )      849       —         849  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Foreign currency other comprehensive income (loss)

      (1,601 )      —         (1,601 )      849       —         849  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other comprehensive income - Southwest Gas Holdings, Inc.

    $ 2,429     $ (967 )    $ 1,462     $ 4,441     $ (1,366 )    $ 3,075  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     Twelve Months Ended     Twelve Months Ended  
     June 30, 2018     June 30, 2017  
     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)

    $ (43,027 )    $ 10,326     $ (32,701 )    $ (22,770 )    $ 8,652     $ (14,118 ) 

Amortization of prior service cost

      1,335       (413 )      922       1,335       (507 )      828  

Amortization of net actuarial (gain)/loss

      29,531       (8,869 )      20,662       26,255       (9,976 )      16,279  

Regulatory adjustment

      8,691       (479 )      8,212       (4,808 )      1,826       (2,982 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Pension plans other comprehensive income (loss)

      (3,470 )      565       (2,905 )      12       (5 )      7  

FSIRS (designated hedging activities):

             

Amounts reclassifed into net income

      3,345       (1,037 )      2,308       3,344       (1,271 )      2,073  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

FSIRS other comprehensive income

      3,345       (1,037 )      2,308       3,344       (1,271 )      2,073  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other comprehensive income (loss) - Southwest Gas Corporation

      (125 )      (472 )      (597 )      3,356       (1,276 )      2,080  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Foreign currency translation adjustments:

             

Translation adjustments

      (679 )      —         (679 )      158       —         158  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Foreign currency other comprehensive income (loss)

      (679 )      —         (679 )      158       —         158  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other comprehensive income (loss) - Southwest Gas Holdings, Inc.

    $ (804 )    $ (472 )    $ (1,276 )    $ 3,514     $ (1,276 )    $ 2,238  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1)

Tax amounts are calculated using a 24% rate following the December 22, 2017 enactment date of the TCJA. For periods prior to the enactment date (and included in specific line items of the tables for the twelve months ended June 30, 2018 and 2017), tax amounts were calculated using a 38% rate. The tax effect of before-tax amounts remaining in the balance of Accumulated other comprehensive income as of June 30, 2018 is effectively computed using a 24% tax rate overall after the reclassification of previously stranded excess deferred taxes existing as a result of the TCJA (see table for Accumulated other comprehensive income, including the balance, below). With regard to foreign currency translation adjustments, 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 Southwest’s Condensed Consolidated Balance Sheets:

AOCI - Rollforward

(Thousands of dollars)

 

     Defined Benefit Plans     FSIRS              
     Before-Tax     Tax
(Expense)
Benefit (10)		     After-Tax     Before-Tax     Tax
(Expense)
Benefit (10)		     After-Tax     Other     AOCI  

Beginning Balance AOCI
December 31, 2017

    $ (61,520 )    $ 22,293     $ (39,227 )    $ (12,655 )    $ 4,809     $ (7,846 )    $ —       $ (47,073 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

FSIRS amounts reclassified from AOCI (6)

      —         —         —         1,673       (402 )      1,271       —         1,271  

Amortization of prior service cost (7)

      668       (160 )      508       —         —         —         —         508  

Amortization of net actuarial loss (7)

      16,808       (4,034 )      12,774       —         —         —         —         12,774  

Regulatory adjustment (8)

      (15,119 )      3,629       (11,490 )      —         —         —         —         (11,490 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net current period other comprehensive income attributable to Southwest Gas Corporation

      2,357       (565 )      1,792       1,673       (402 )      1,271       —         3,063  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reclassification of excess deferred taxes (9)

      —         —         —         —         —         —         (9,300 )      (9,300 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending Balance AOCI June 30, 2018

    $ (59,163 )    $ 21,728     $ (37,435 )    $ (10,982 )    $ 4,407     $ (6,575 )    $ (9,300 )    $ (53,310 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(6)

The FSIRS reclassification amounts are included in the Net interest deductions line item on Southwest’s Condensed Consolidated Statements of Income.
(7)

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).
(8)

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 Southwest’s Condensed Consolidated Balance Sheets).
(9)

Release of excess deferred taxes accumulated prior to December 22, 2017 (date of enactment of the TCJA), as a result of the adoption of ASU 2018-02, which permitted such release.
(10)

Tax amounts related to the before-tax balance at June 30, 2018 are calculated using a 24% rate after the release of previously stranded excess deferred taxes existing as a result of the TCJA; amounts prior to the December 22, 2017 enactment of the TCJA were calculated using a 38% rate.
Amount Recognized Before Income Tax in Accumulated Other Comprehensive Income

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

Amounts Recognized in AOCI (Before Tax)

(Thousands of dollars)

 

     June 30, 2018      December 31, 2017  

Net actuarial (loss) gain

    $ (431,747 )     $ (448,555 ) 

Prior service cost

      (3,700 )       (4,368 ) 

Less: amount recognized in regulatory assets

      376,284        391,403  
  

 

 

     

 

 

  

Recognized in AOCI

    $ (59,163 )     $ (61,520 ) 
  

 

 

     

 

 

  
Southwest Gas Corporation [Member]  
Detailed Activities of Equity and Redeemable Noncontrolling Interest

The table below provides details of activity in equity for Southwest Gas Corporation during the six months ended June 30, 2018. Only equity shares of the Company are publicly traded, under the ticker symbol “SWX.”

 

    Southwest Gas Corporation Equity        
                      Accumulated              
                Additional     Other              
    Common Stock     Paid-in     Comprehensive     Retained        

(In thousands)

   Shares     Amount     Capital     Income (Loss)     Earnings     Total  

DECEMBER 31, 2017

     47,482     $ 49,112     $ 948,767     $ (47,073 )    $ 659,193     $ 1,609,999  

Net income

             92,971       92,971  

Other comprehensive income (loss):

            

Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax

           1,792         1,792  

Amounts reclassified to net income, net of tax (FSIRS)

           1,271         1,271  

Reclassification of excess deferred taxes (a)

           (9,300 )      9,300       —    

Stock-based compensation (b)

         702         (338 )      364  

Dividends declared to Southwest Gas Holdings, Inc.

             (44,000 )      (44,000 ) 

Contributions from Southwest Gas Holdings, Inc.

         56,596           56,596  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

JUNE 30, 2018

     47,482     $ 49,112     $ 1,006,065     $ (53,310 )    $ 717,126     $ 1,718,993  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a)

Release of excess deferred taxes accumulated prior to December 22, 2017 (date of enactment of the TCJA), as a result of the adoption of ASU 2018-02, which permitted such release.
(b)

Stock-based compensation is based on stock awards of Southwest Gas Corporation to be issued in shares of Southwest Gas Holdings, Inc.
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 (5)		     After-Tax     Before-Tax     Tax
(Expense)
Benefit (5)		     After-Tax     Before-Tax     Tax
(Expense)
Benefit		     After-Tax     Other     AOCI  

Beginning Balance AOCI
December 31, 2017

   $ (61,520 )    $ 22,293     $ (39,227 )    $ (12,655 )    $ 4,809     $ (7,846 )    $ (609 )    $ —       $ (609 )    $ —       $ (47,682 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Translation adjustments

     —         —         —         —         —         —         (1,601 )      —         (1,601 )      —         (1,601 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other comprehensive income before reclassifications

     —         —         —         —         —         —         (1,601 )      —         (1,601 )      —         (1,601 ) 

FSIRS amounts reclassified from AOCI (1)

     —         —         —         1,673       (402 )      1,271       —         —         —         —         1,271  

Amortization of prior service cost (2)

     668       (160 )      508       —         —         —         —         —         —         —         508  

Amortization of net actuarial loss (2)

     16,808       (4,034 )      12,774       —         —         —         —         —         —         —         12,774  

Regulatory adjustment (3)

     (15,119 )      3,629       (11,490 )      —         —         —         —         —         —         —         (11,490 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc.

     2,357       (565 )      1,792       1,673       (402 )      1,271       (1,601 )      —         (1,601 )      —         1,462  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reclassification of excess deferred taxes (4)

     —         —         —         —         —         —         —         —         —         (9,300 )      (9,300 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending Balance AOCI June 30, 2018

   $ (59,163 )    $ 21,728     $ (37,435 )    $ (10,982 )    $ 4,407     $ (6,575 )    $ (2,210 )    $ —       $ (2,210 )    $ (9,300 )    $ (55,520 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1)

The FSIRS reclassification amounts are included in the Net interest deductions line item on the Company’s 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 Company’s Condensed Consolidated Balance Sheets).
(4)

Release of excess deferred taxes accumulated prior to December 22, 2017 (date of enactment of the TCJA), as a result of the adoption of ASU 2018-02, which permitted such release.
(5)

Tax amounts related to the before-tax balance at June 30, 2018 are calculated using a 24% rate after the release of previously stranded excess deferred taxes existing as a result of the TCJA; amounts prior to the December 22, 2017 enactment of the TCJA were calculated using a 38% rate.