Reorganization Impacts - Discontinued Operations Solely Related to Southwest Gas Corporation

9 Months Ended

Sep. 30, 2018

Restructuring and Related Activities [Abstract]

Reorganization Impacts - Discontinued Operations Solely Related to Southwest Gas Corporation

Note 10 – Reorganization Impacts – Discontinued Operations Solely Related to Southwest Gas Corporation

As a result of adopting a holding company structure in January 2017, no substantive change occurred with regard to the Company’s business segments on the whole, or in the primary businesses comprising those segments (Centuri operations continue to be part of continuing operations of the controlled group of companies), and financial information related to Centuri continues to be included in the condensed consolidated financial statements of Southwest Gas Holdings, Inc.

However, as part of the holding company reorganization, Centuri is no longer a subsidiary of Southwest; whereas historically, Centuri had been a direct subsidiary of Southwest. To give effect to this change, the condensed consolidated financial statements related to Southwest Gas Corporation, which are separately included in this Form 10-Q, depict Centuri-related amounts as discontinued operations for periods prior to January 2017.

Due to the discontinued operations accounting reflection, the following disclosures provide additional information regarding the revenues and expenses of Centuri which are shown as discontinued operations on the condensed consolidated financial statements of Southwest Gas Corporation for periods prior to the beginning of 2017.

The following table presents the major income statement components of discontinued operations – construction services reported in the Condensed Consolidated Statements of Income of Southwest Gas Corporation:

Results of Infrastructure Services

(Thousands of dollars)	Twelve Months Ended September 30, 2017
Construction revenues	$	301,040
Operating expenses:
Construction expenses	266,504
Depreciation and amortization	12,318
Operating income	22,218
Other income (deductions)	1,149
Net interest deductions	1,718
Income before income taxes	21,649
Income tax expense	7,842
Net income	13,807
Net income attributable to noncontrolling interests	514
Discontinued operations - construction services - income	$	13,293