Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2020


	Three Months Ended September 30, 2020						Three Months Ended September 30, 2019
(Thousands of dollars)	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	$	289	$	(69)	$	220	$	318	$	(77)	$	241
Amortization of net actuarial (gain)/loss	9,457		(2,270)		7,187		5,844		(1,402)		4,442
Regulatory adjustment	(8,394)		2,014		(6,380)		(5,348)		1,283		(4,065)
Pension plans other comprehensive income (loss)	1,352		(325)		1,027		814		(196)		618
FSIRS (designated hedging activities):
Amounts reclassified into net income	1,030		(247)		783		836		(201)		635
FSIRS other comprehensive income (loss)	1,030		(247)		783		836		(201)		635
Total other comprehensive income (loss) - Southwest Gas Corporation	2,382		(572)		1,810		1,650		(397)		1,253
Foreign currency translation adjustments:
Translation adjustments	1,024		—		1,024		(447)		—		(447)
Foreign currency other comprehensive income (loss)	1,024		—		1,024		(447)		—		(447)
Total other comprehensive income (loss) - Southwest Gas Holdings, Inc.	$	3,406	$	(572)	$	2,834	$	1,203	$	(397)	$	806

	Nine Months Ended September 30, 2020						Nine Months Ended September 30, 2019
(Thousands of dollars)	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	$	867	$	(208)	$	659	$	953	$	(229)	$	724
Amortization of net actuarial (gain)/loss	28,372		(6,809)		21,563		17,532		(4,207)		13,325
Regulatory adjustment	(25,184)		6,044		(19,140)		(16,043)		3,850		(12,193)
Pension plans other comprehensive income (loss)	4,055		(973)		3,082		2,442		(586)		1,856
FSIRS (designated hedging activities):
Amounts reclassified into net income	2,703		(649)		2,054		2,508		(602)		1,906
FSIRS other comprehensive income (loss)	2,703		(649)		2,054		2,508		(602)		1,906
Total other comprehensive income (loss) - Southwest Gas Corporation	6,758		(1,622)		5,136		4,950		(1,188)		3,762
Foreign currency translation adjustments:
Translation adjustments	(1,187)		—		(1,187)		1,131		—		1,131
Foreign currency other comprehensive income (loss)	(1,187)		—		(1,187)		1,131		—		1,131
Total other comprehensive income (loss) - Southwest Gas Holdings, Inc.	$	5,571	$	(1,622)	$	3,949	$	6,081	$	(1,188)	$	4,893


	Twelve Months Ended September 30, 2020						Twelve Months Ended September 30, 2019
(Thousands of dollars)	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)	$	(71,087)	$	17,061	$	(54,026)	$	(20,426)	$	4,902	$	(15,524)
Amortization of prior service cost	1,185		(284)		901		1,286		(309)		977
Amortization of net actuarial (gain)/loss	34,216		(8,212)		26,004		25,937		(6,224)		19,713
Prior service cost	(1,878)		452		(1,426)		—		—		—
Regulatory adjustment	27,803		(6,673)		21,130		(1,597)		383		(1,214)
Pension plans other comprehensive income (loss)	(9,761)		2,344		(7,417)		5,200		(1,248)		3,952
FSIRS (designated hedging activities):
Amounts reclassified into net income	3,539		(850)		2,689		3,344		(804)		2,540
FSIRS other comprehensive income (loss)	3,539		(850)		2,689		3,344		(804)		2,540
Total other comprehensive income (loss) - Southwest Gas Corporation	(6,222)		1,494		(4,728)		8,544		(2,052)		6,492
Foreign currency translation adjustments:
Translation adjustments	(280)		—		(280)		(877)		—		(877)
Foreign currency other comprehensive income (loss)	(280)		—		(280)		(877)		—		(877)
Total other comprehensive income (loss) - Southwest Gas Holdings, Inc.	$	(6,502)	$	1,494	$	(5,008)	$	7,667	$	(2,052)	$	5,615

(1)Tax amounts are calculated using a 24% rate. The Company has elected to indefinitely reinvest the earnings of Centuri’s Canadian subsidiaries in Canada, thus precluding deferred taxes on such earnings. As a result of this assertion, and no repatriation of earnings anticipated, the Company is not recognizing a tax effect or presenting a tax expense or benefit for currency translation adjustments reported in Other comprehensive income (loss).

Rollforward of Accumulated Other Comprehensive Income

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


	Defined Benefit Plans						FSIRS						Foreign Currency Items
(Thousands of dollars)	Before-Tax		Tax (Expense) Benefit (4)		After-Tax		Before-Tax		Tax (Expense) Benefit (4)		After-Tax		Before-Tax		Tax (Expense) Benefit		After-Tax		AOCI
Beginning Balance AOCI December 31, 2019	$	(66,601)	$	15,985	$	(50,616)	$	(5,966)	$	1,431	$	(4,535)	$	(1,581)	$	—	$	(1,581)	$	(56,732)
Translation adjustments	—		—		—		—		—		—		(1,187)		—		(1,187)		(1,187)
Other comprehensive income (loss) before reclassifications	—		—		—		—		—		—		(1,187)		—		(1,187)		(1,187)
FSIRS amounts reclassified from AOCI (1)	—		—		—		2,703		(649)		2,054		—		—		—		2,054
Amortization of prior service cost (2)	867		(208)		659		—		—		—		—		—		—		659
Amortization of net actuarial loss (2)	28,372		(6,809)		21,563		—		—		—		—		—		—		21,563
Regulatory adjustment (3)	(25,184)		6,044		(19,140)		—		—		—		—		—		—		(19,140)
Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc.	4,055		(973)		3,082		2,703		(649)		2,054		(1,187)		—		(1,187)		3,949
Ending Balance AOCI September 30, 2020	$	(62,546)	$	15,012	$	(47,534)	$	(3,263)	$	782	$	(2,481)	$	(2,768)	$	—	$	(2,768)	$	(52,783)

(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.

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


	Defined Benefit Plans						FSIRS
(Thousands of dollars)	Before-Tax		Tax (Expense) Benefit (8)		After-Tax		Before-Tax		Tax (Expense) Benefit (8)		After-Tax		AOCI
Beginning Balance AOCI December 31, 2019	$	(66,601)	$	15,985	$	(50,616)	$	(5,966)	$	1,431	$	(4,535)	$	(55,151)
FSIRS amounts reclassified from AOCI (5)	—		—		—		2,703		(649)		2,054		2,054
Amortization of prior service cost (6)	867		(208)		659		—		—		—		659
Amortization of net actuarial loss (6)	28,372		(6,809)		21,563		—		—		—		21,563
Regulatory adjustment (7)	(25,184)		6,044		(19,140)		—		—		—		(19,140)
Net current period other comprehensive income attributable to Southwest Gas Corporation	4,055		(973)		3,082		2,703		(649)		2,054		5,136
Ending Balance AOCI September 30, 2020	$	(62,546)	$	15,012	$	(47,534)	$	(3,263)	$	782	$	(2,481)	$	(50,015)

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

(6)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).

(7)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).

(8)Tax amounts are calculated using a 24% 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:


(Thousands of dollars)	September 30, 2020		December 31, 2019
Net actuarial loss	$	(454,702)	$	(483,074)
Prior service cost	(2,774)		(3,641)
Less: amount recognized in regulatory assets	394,930		420,114
Recognized in AOCI	$	(62,546)	$	(66,601)