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Equity, Other Comprehensive Income, and Accumulated Other Comprehensive Income (Tables)
 3 Months Ended
Mar. 31, 2019
Equity [Abstract]  
Detailed Activities of Equity and Redeemable Noncontrolling Interest The tables below provide details of activity in equity, the noncontrolling interest, and the redeemable noncontrolling interest for the Company on a consolidated basis for the three-month periods ended March 31, 2019 and March 31, 2018.
 
 
Southwest Gas Holdings, Inc. Equity
 
 
 
 
 
 
(In thousands, except per share amounts)
 
Common Stock
 
Additional Paid-in Capital
 
Accumulated
Other
Comprehensive Income (Loss)
 
Retained Earnings
 
Non-controlling Interest
 
 
 
Redeemable Noncontrolling Interest
(Temporary Equity)
 
Shares
 
Amount
 
 
 
 
 
Total
 
December 31, 2018
 
53,026

 
$
54,656

 
$
1,305,769

 
$
(52,668
)
 
$
944,285

 
$
(452
)
 
$
2,251,590

 
$
81,831

Common stock issuances
 
365

 
365

 
27,024

 
 
 
 
 
 
 
27,389

 
 
Net income (loss)
 
 
 
 
 
 
 
 
 
94,809

 
 
 
94,809

 
575

Foreign currency exchange translation adjustment
 
 
 
 
 
 
 
791

 
 
 
 
 
791

 
 
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax
 
 
 
 
 
 
 
619

 
 
 
 
 
619

 
 
FSIRS amounts reclassified to net income, net of tax
 
 
 
 
 
 
 
635

 
 
 
 
 
635

 
 
Dividends declared
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common: $0.545 per share
 
 
 
 
 
 
 
 
 
(29,285
)
 
 
 
(29,285
)
 
 
March 31, 2019
 
53,391

 
$
55,021

 
$
1,332,793

 
$
(50,623
)
 
$
1,009,809

 
$
(452
)
 
$
2,346,548

 
$
82,406


 
 
Southwest Gas Holdings, Inc. Equity
 
 
 
 
 
 
Common Stock
 
Additional Paid-in Capital
 
Accumulated
Other
Comprehensive Income (Loss)
 
Retained Earnings
 
Non-controlling Interest
 
 
(In thousands, except per share amounts)
 
Shares
 
Amount
 
 
 
 
 
Total
December 31, 2017
 
48,090

 
$
49,720

 
$
955,332

 
$
(47,682
)
 
$
857,398

 
$
(2,365
)
 
$
1,812,403

Common stock issuances
 
247

 
247

 
10,148

 
 
 
 
 
 
 
10,395

Net income (loss)
 
 
 
 
 
 
 
 
 
79,091

 
(797
)
 
78,294

Foreign currency exchange translation adjustment
 
 
 
 
 
 
 
(911
)
 
 
 
 
 
(911
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax
 
 
 
 
 
 
 
895

 
 
 
 
 
895

FSIRS amounts reclassified to net income, net of tax
 
 
 
 
 
 
 
635

 
 
 
 
 
635

Reclassification of excess deferred taxes (a)
 
 
 
 
 
 
 
(9,300
)
 
9,300

 
 
 
—

Dividends declared
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common: $0.52 per share
 
 
 
 
 
 
 
 
 
(25,335
)
 
 
 
(25,335
)
March 31, 2018
 
48,337

 
$
49,967

 
$
965,480

 
$
(56,363
)
 
$
920,454

 
$
(3,162
)
 
$
1,876,376

(a)
Reclassification for the release of excess deferred taxes as a result of the adoption of ASU No. 2018-02 “Income Statement—Reporting Comprehensive Income—Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which permitted release of excess amounts created following the December 2017 enactment of U.S. tax reform.
The tables below provide details of activity in equity for Southwest during the three-month periods ended March 31, 2019 and March 31, 2018. Only equity shares of the Company are publicly traded, under the ticker symbol “SWX.”
 
 
Southwest Gas Corporation Equity
 
 
 
 
Common Stock
 
Additional Paid-in Capital
 
Accumulated
Other
Comprehensive Income (Loss)
 
Retained Earnings
 
 
(In thousands)
 
Shares
 
Amount
 
 
 
 
Total
December 31, 2018
 
47,482

 
$
49,112

 
$
1,065,242

 
$
(49,049
)
 
$
717,155

 
$
1,782,460

Net income
 
 
 
 
 
 
 
 
 
103,389

 
103,389

Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax
 
 
 
 
 
 
 
619

 
 
 
619

FSIRS amounts reclassified to net income, net of tax
 
 
 
 
 
 
 
635

 
 
 
635

Stock-based compensation (a)
 
 
 
 
 
918

 
 
 
(160
)
 
758

Dividends declared to Southwest Gas Holdings, Inc.
 
 
 
 
 
 
 
 
 
(22,800
)
 
(22,800
)
Contributions from Southwest Gas Holdings, Inc.
 
 
 
 
 
22,842

 
 
 
 
 
22,842

March 31, 2019
 
47,482

 
$
49,112

 
$
1,089,002

 
$
(47,795
)
 
$
797,584

 
$
1,887,903


 
 
Southwest Gas Corporation Equity
 
 
 
 
Common Stock
 
Additional Paid-in Capital
 
Accumulated
Other
Comprehensive Income (Loss)
 
Retained Earnings
 
 
(In thousands)
 
Shares
 
Amount
 
 
 
 
Total
December 31, 2017
 
47,482

 
$
49,112

 
$
948,767

 
$
(47,073
)
 
$
659,193

 
$
1,609,999

Net income
 
 
 
 
 
 
 
 
 
90,349

 
90,349

Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax
 
 
 
 
 
 
 
895

 
 
 
895

FSIRS amounts reclassified to net income, net of tax
 
 
 
 
 
 
 
635

 
 
 
635

Reclassification of excess deferred taxes (b)
 
 
 
 
 
 
 
(9,300
)
 
9,300

 
—

Stock-based compensation (a)
 
 
 
 
 
(568
)
 
 
 
(166
)
 
(734
)
Dividends declared to Southwest Gas Holdings, Inc.
 
 
 
 
 
 
 
 
 
(22,000
)
 
(22,000
)
March 31, 2018
 
47,482

 
$
49,112

 
$
948,199

 
$
(54,843
)
 
$
736,676

 
$
1,679,144

(a)
Stock-based compensation is based on stock awards of Southwest Gas Corporation to be issued in shares of Southwest Gas Holdings, Inc.
(b)
Reclassification for the release of excess deferred taxes as a result of the adoption of ASU No. 2018-02, which permitted release of excess amounts created following the December 2017 enactment of U.S. tax reform.
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
 
 
March 31, 2019
 
March 31, 2018
 
 
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
 
$
317

 
$
(76
)
 
$
241

 
$
334

 
$
(80
)
 
$
254

Amortization of net actuarial (gain)/loss
 
5,844

 
(1,403
)
 
4,441

 
8,404

 
(2,017
)
 
6,387

Regulatory adjustment
 
(5,347
)
 
1,284

 
(4,063
)
 
(7,560
)
 
1,814

 
(5,746
)
Pension plans other comprehensive income
 
814

 
(195
)
 
619

 
1,178

 
(283
)
 
895

FSIRS (designated hedging activities):
 
 
 
 
 
 
 
 
 
 
 
 
Amounts reclassified into net income
 
836

 
(201
)
 
635

 
837

 
(202
)
 
635

FSIRS other comprehensive income
 
836

 
(201
)
 
635

 
837

 
(202
)
 
635

Total other comprehensive income - Southwest Gas Corporation
 
1,650

 
(396
)
 
1,254

 
2,015

 
(485
)
 
1,530

Foreign currency translation adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
Translation adjustments
 
791

 
—

 
791

 
(911
)
 
—

 
(911
)
Foreign currency other comprehensive income (loss)
 
791

 
—

 
791

 
(911
)
 
—

 
(911
)
Total other comprehensive income - Southwest Gas Holdings, Inc.
 
$
2,441

 
$
(396
)
 
$
2,045

 
$
1,104

 
$
(485
)
 
$
619

 
 
Twelve Months Ended
 
Twelve Months Ended
 
 
March 31, 2019
 
March 31, 2018
 
 
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:
 
 
 
 
 
 
 
 
 
 
 
 
Net actuarial gain/(loss)
 
$
(20,426
)
 
$
4,902

 
$
(15,524
)
 
$
(43,027
)
 
$
10,326

 
$
(32,701
)
Amortization of prior service cost
 
1,318

 
(316
)
 
1,002

 
1,335

 
(460
)
 
875

Amortization of net actuarial (gain)/loss
 
31,057

 
(7,454
)
 
23,603

 
27,488

 
(9,269
)
 
18,219

Regulatory adjustment
 
(6,020
)
 
1,446

 
(4,574
)
 
10,515

 
(115
)
 
10,400

Pension plans other comprehensive income (loss)
 
5,929

 
(1,422
)
 
4,507

 
(3,689
)
 
482

 
(3,207
)
FSIRS (designated hedging activities):
 
 
 
 
 
 
 
 
 
 
 
 
Amounts reclassified into net income
 
3,344

 
(803
)
 
2,541

 
3,345

 
(1,155
)
 
2,190

FSIRS other comprehensive income
 
3,344

 
(803
)
 
2,541

 
3,345

 
(1,155
)
 
2,190

Total other comprehensive income (loss) - Southwest Gas Corporation
 
9,273

 
(2,225
)
 
7,048

 
(344
)
 
(673
)
 
(1,017
)
Foreign currency translation adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
Translation adjustments
 
(1,308
)
 
—

 
(1,308
)
 
640

 
—

 
640

Foreign currency other comprehensive income (loss)
 
(1,308
)
 
—

 
(1,308
)
 
640

 
—

 
640

Total other comprehensive income (loss) - Southwest Gas Holdings, Inc.
 
$
7,965

 
$
(2,225
)
 
$
5,740

 
$
296

 
$
(673
)
 
$
(377
)
(1)
Tax amounts are calculated using a 24% rate following the December 22, 2017 enactment date of U.S. tax reform. For periods prior to the enactment date (and included in specific line items of the tables for the twelve months ended March 31, 2018), tax amounts were calculated using a 38% rate. The tax effect of before-tax amounts remaining in the balance of Accumulated other comprehensive income (loss) as of March 31, 2019 is effectively computed using a 24% tax rate overall. 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 (loss), 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 (4,5)
 
After-Tax (5)
 
Before-Tax
 
Tax
(Expense)
Benefit (4,5)
 
After-Tax (5)
 
Before-Tax
 
Tax
(Expense)
Benefit
 
After-Tax
 
AOCI
Beginning Balance AOCI December 31, 2018
 
$
(55,227
)
 
$
13,254

 
$
(41,973
)
 
$
(9,310
)
 
$
2,234

 
$
(7,076
)
 
$
(3,619
)
 
$
—

 
$
(3,619
)
 
$
(52,668
)
Translation adjustments
 
—

 
—

 
—

 
—

 
—

 
—

 
791

 
—

 
791

 
791

Other comprehensive income (loss) before reclassifications
 
—

 
—

 
—

 
—

 
—

 
—

 
791

 
—

 
791

 
791

FSIRS amounts reclassified from AOCI (1)
 
—

 
—

 
—

 
836

 
(201
)
 
635

 
—

 
—

 
—

 
635

Amortization of prior service cost (2)
 
317

 
(76
)
 
241

 
—

 
—

 
—

 
—

 
—

 
—

 
241

Amortization of net actuarial loss (2)
 
5,844

 
(1,403
)
 
4,441

 
—

 
—

 
—

 
—

 
—

 
—

 
4,441

Regulatory adjustment (3)
 
(5,347
)
 
1,284

 
(4,063
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(4,063
)
Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc.
 
814

 
(195
)
 
619

 
836

 
(201
)
 
635

 
791

 
—

 
791

 
2,045

Ending Balance AOCI March 31, 2019
 
$
(54,413
)
 
$
13,059

 
$
(41,354
)
 
$
(8,474
)
 
$
2,033

 
$
(6,441
)
 
$
(2,828
)
 
$
—

 
$
(2,828
)
 
$
(50,623
)
(1)
The FSIRS reclassification amounts are included in Net interest deductions 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 Deferred charges and other assets on the Company’s Condensed Consolidated Balance Sheets).
(4)
Tax amounts are calculated using a 24% rate.
(5)
The beginning balances depict amounts attributable to the individual components of AOCI (Defined Benefit Plans and FSIRS) following the adoption of ASU No. 2018-02, with no impact to the total balance of AOCI resulting from the depiction.
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 (9,10)
 
After-Tax (10)
 
Before-Tax
 
Tax
(Expense)
Benefit (9,10)
 
After-Tax (10)
 
AOCI
Beginning Balance AOCI December 31, 2018
 
$
(55,227
)
 
$
13,254

 
$
(41,973
)
 
$
(9,310
)
 
$
2,234

 
$
(7,076
)
 
$
(49,049
)
FSIRS amounts reclassified from AOCI (6)
 
—

 
—

 
—

 
836

 
(201
)
 
635

 
635

Amortization of prior service cost (7)
 
317

 
(76
)
 
241

 
—

 
—

 
—

 
241

Amortization of net actuarial loss (7)
 
5,844

 
(1,403
)
 
4,441

 
—

 
—

 
—

 
4,441

Regulatory adjustment (8)
 
(5,347
)
 
1,284

 
(4,063
)
 
—

 
—

 
—

 
(4,063
)
Net current period other comprehensive income attributable to Southwest Gas Corporation
 
814

 
(195
)
 
619

 
836

 
(201
)
 
635

 
1,254

Ending Balance AOCI March 31, 2019
 
$
(54,413
)
 
$
13,059

 
$
(41,354
)
 
$
(8,474
)
 
$
2,033

 
$
(6,441
)
 
$
(47,795
)
(6)
The FSIRS reclassification amounts are included in Net interest deductions 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 Deferred charges and other assets on Southwest’s Condensed Consolidated Balance Sheets).
(9)
Tax amounts are calculated using a 24% rate.
(10)
The beginning balances depict amounts attributable to the individual components of AOCI (Defined Benefit Plans and FSIRS) following the adoption of ASU No. 2018-02, with no impact to the total balance of AOCI resulting from the depiction.
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)
 
 
March 31, 2019
 
December 31, 2018
Net actuarial (loss) gain
 
$
(429,520
)
 
$
(435,364
)
Prior service cost
 
(2,716
)
 
(3,033
)
Less: amount recognized in regulatory assets
 
377,823

 
383,170

Recognized in AOCI
 
$
(54,413
)
 
$
(55,227
)