Other Comprehensive Income and Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2024

Other Comprehensive Income and Accumulated Other Comprehensive Income

Note 6 – Other Comprehensive Income and Accumulated Other Comprehensive Income

The following information presents the Company’s Other comprehensive income (loss), both before and after-tax impacts, within the Condensed Consolidated Statements of Comprehensive Income, which also impact Accumulated other comprehensive income (“AOCI”) in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Equity.

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


	Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
(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	$	44	$	(11)	$	33	$	44	$	(11)	$	33
Amortization of net actuarial (gain)/loss	1,910		(459)		1,451		333		(80)		253
Regulatory adjustment	(1,448)		348		(1,100)		(119)		29		(90)
Total other comprehensive income (loss) - Southwest Gas Corporation	506		(122)		384		258		(62)		196
Foreign currency translation adjustment	(2,819)		—		(2,819)		97		—		97

Total other comprehensive income (loss) - Southwest Gas Holdings, Inc.	$	(2,313)	$	(122)	$	(2,435)	$	355	$	(62)	$	293

(1)Tax amounts are calculated using a 24% rate. The Company has elected to indefinitely reinvest, in Canada, the earnings of Centuri’s Canadian subsidiaries, 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).

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						Foreign Currency Items
(Thousands of dollars)	Before-Tax		Tax (Expense) Benefit (3)		After-Tax			Before-Tax		Tax (Expense) Benefit		After-Tax		AOCI
Beginning Balance AOCI December 31, 2023	$	(53,352)	$	12,804	$	(40,548)		$	(3,239)	$	—	$	(3,239)	$	(43,787)
Foreign currency translation adjustment	—		—		—			(2,819)		—		(2,819)		(2,819)
Amortization of prior service cost (1)	44		(11)		33			—		—		—		33
Amortization of net actuarial loss (1)	1,910		(459)		1,451			—		—		—		1,451
Regulatory adjustment (2)	(1,448)		348		(1,100)			—		—		—		(1,100)
Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc.	506		(122)		384			(2,819)		—		(2,819)		(2,435)
Ending Balance AOCI March 31, 2024	$	(52,846)	$	12,682	$	(40,164)		$	(6,058)	$	—	$	(6,058)	$	(46,222)

(1)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).

(2)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).

(3)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
(Thousands of dollars)	Before-Tax		Tax (Expense) Benefit (6)		After-Tax
Beginning Balance AOCI December 31, 2023	$	(53,352)	$	12,804	$	(40,548)
Amortization of prior service cost (4)	44		(11)		33
Amortization of net actuarial loss (4)	1,910		(459)		1,451
Regulatory adjustment (5)	(1,448)		348		(1,100)
Net current period other comprehensive income attributable to Southwest Gas Corporation	506		(122)		384
Ending Balance AOCI March 31, 2024	$	(52,846)	$	12,682	$	(40,164)

(4)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).

(5)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).

(6)Tax amounts are calculated using a 24% rate.

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)	March 31, 2024		December 31, 2023
Net actuarial loss	$	(360,058)	$	(361,968)
Prior service cost	(1,134)		(1,178)
Less: amount recognized in regulatory assets	308,346		309,794
Recognized in AOCI	$	(52,846)	$	(53,352)