Business Acquisitions (Tables)

9 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Summary of Fair Values of Assets Acquired and Liabilities Assumed

The preliminary estimated fair values of assets acquired and liabilities assumed as of August 27, 2021, are as follows (in millions of dollars):

Cash and cash equivalents	$	1.9
Accounts receivable	69.1
Contract assets	40.1
Income taxes receivable, net	0.7
Right of use assets under operating leases	1.5
Prepaid expenses	5.2
Property and equipment	118.1
Intangible assets	335.0
Goodwill	446.8
Total assets acquired	1,018.4
Trade and other payables	46.2
Finance lease obligations	27.5
Contract liabilities	12.7
Operating lease obligations	1.5
Other liabilities	5.3
Deferred tax liabilities	94.8
Total liabilities assumed	188.0
Net assets acquired	$	830.4

Schedule of Finite-Lived Intangible Assets Acquired

The amounts allocated to major classes of intangibles are as follows:

(Thousands of dollars)	Estimated fair Value		Estimated Weighted Average Useful Life in Years
Backlog	$	5,000	1
Trade names	60,000		15
Customer relationships	270,000		19
	$	335,000

Business Acquisition, Pro Forma Information

The following unaudited pro forma financial information reflects the consolidated results of operations of the Company assuming the acquisition had taken place on January 1, 2020. The most significant pro forma adjustments relate to: (i) reflecting approximately $30 million in transaction costs (incurred by Centuri and Riggs Distler) in the nine months ended September 30, 2020, and excluding such costs from the three and nine month periods ended September 30, 2021, and (ii) reflecting incremental interest expense related to the new loan facility of $7 million and $27 million in the three and nine month periods, respectively, ended September 30, 2021, and approximately $9 million and $24.5 million in the comparable periods in 2020. This information is preliminary in nature and subject to change based upon final purchase price adjustments. Amounts are in thousands of dollars, except per share amounts.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Total operating revenues	$	956,120	$	907,512	$	2,903,658	$	2,702,062
Net income (loss) attributable to Southwest Gas Holdings, Inc.	$	(8,918)	$	12,688	$	120,828	$	84,049
Basic earnings (loss) per share	$	(0.15)	$	0.23	$	2.06	$	1.51
Diluted earnings (loss) per share	$	(0.15)	$	0.23	$	2.06	$	1.51

Actual results from operations for Riggs Distler, excluding transaction costs and interest expense on acquisition related debt incurred by Centuri, included in the Consolidated Statements of Income since the date of acquisition are as follows (in thousands of dollars):

	Nine Months Ended September 30, 2021
Utility infrastructure services revenues	$	49,520
Net income attributable to Southwest Gas Holdings, Inc.	$	1,646