Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-37976 | |
Entity Registrant Name | Southwest Gas Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-3881866 | |
Entity Address, Address Line One | 8360 S. Durango Drive | |
Entity Address, Address Line Two | Post Office Box 98510 | |
Entity Address, City or Town | Las Vegas, | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89193-8510 | |
City Area Code | (702) | |
Local Phone Number | 876-7237 | |
Title of 12(b) Security | Southwest Gas Holdings, Inc. Common Stock, $1 Par Value | |
Trading Symbol | SWX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 56,464,880 | |
Entity Central Index Key | 0001692115 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Southwest Gas Corporation | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Entity File Number | 1-7850 | |
Entity Registrant Name | Southwest Gas Corporation | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 88-0085720 | |
Entity Address, Address Line One | 8360 S. Durango Drive | |
Entity Address, Address Line Two | Post Office Box 98510 | |
Entity Address, City or Town | Las Vegas, | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89193-8510 | |
City Area Code | (702) | |
Local Phone Number | 876-7237 | |
Trading Symbol | SWX | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Central Index Key | 0000092416 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Utility plant: | ||
Gas plant | $ 8,219,196 | $ 7,813,221 |
Less: accumulated depreciation | (2,394,730) | (2,313,050) |
Construction work in progress | 231,219 | 185,026 |
Net utility plant | 6,055,685 | 5,685,197 |
Other property and investments | 825,069 | 784,173 |
Current assets: | ||
Cash and cash equivalents | 23,945 | 49,539 |
Accounts receivable, net of allowances | 513,017 | 474,097 |
Accrued utility revenue | 36,500 | 79,100 |
Income taxes receivable, net | 7,934 | 31,751 |
Deferred purchased gas costs | 0 | 44,412 |
Prepaid and other current assets | 151,432 | 180,957 |
Total current assets | 732,828 | 859,856 |
Noncurrent assets: | ||
Goodwill | 340,197 | 343,023 |
Deferred income taxes | 841 | 856 |
Deferred charges and other assets | 475,037 | 496,943 |
Total noncurrent assets | 816,075 | 840,822 |
Total assets | 8,429,657 | 8,170,048 |
Capitalization: | ||
Common stock, $1 par (authorized - 120,000,000 shares; issued and outstanding - 56,459,346 and 55,007,433 shares) | 58,089 | 56,637 |
Additional paid-in capital | 1,559,814 | 1,466,937 |
Accumulated other comprehensive loss, net | (52,783) | (56,732) |
Retained earnings | 1,054,118 | 1,039,072 |
Total equity | 2,619,238 | 2,505,914 |
Redeemable noncontrolling interest | 107,284 | 84,542 |
Long-term debt, less current maturities | 2,685,722 | 2,300,482 |
Total capitalization | 5,412,244 | 4,890,938 |
Current liabilities: | ||
Current maturities of long-term debt | 44,903 | 163,512 |
Short-term debt | 54,000 | 211,000 |
Accounts payable | 175,507 | 238,921 |
Customer deposits | 69,122 | 69,165 |
Income taxes payable, net | 1,084 | 2,069 |
Accrued general taxes | 59,958 | 48,160 |
Accrued interest | 35,478 | 21,329 |
Deferred purchased gas costs | 76,242 | 60,755 |
Other current liabilities | 322,928 | 264,950 |
Total current liabilities | 839,222 | 1,079,861 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits, net | 639,002 | 599,840 |
Accumulated removal costs | 401,000 | 395,000 |
Other deferred credits and other long-term liabilities | 1,138,189 | 1,204,409 |
Total deferred income taxes and other credits | 2,178,191 | 2,199,249 |
Total capitalization and liabilities | 8,429,657 | 8,170,048 |
Southwest Gas Corporation | ||
Utility plant: | ||
Gas plant | 8,219,196 | 7,813,221 |
Less: accumulated depreciation | (2,394,730) | (2,313,050) |
Construction work in progress | 231,219 | 185,026 |
Net utility plant | 6,055,685 | 5,685,197 |
Other property and investments | 135,734 | 133,787 |
Current assets: | ||
Cash and cash equivalents | 22,234 | 40,489 |
Accounts receivable, net of allowances | 80,665 | 150,793 |
Accrued utility revenue | 36,500 | 79,100 |
Income taxes receivable, net | 5,032 | 25,901 |
Deferred purchased gas costs | 0 | 44,412 |
Prepaid and other current assets | 130,191 | 165,639 |
Total current assets | 274,622 | 506,334 |
Noncurrent assets: | ||
Goodwill | 10,095 | 10,095 |
Deferred charges and other assets | 455,434 | 463,333 |
Total noncurrent assets | 465,529 | 473,428 |
Total assets | 6,931,570 | 6,798,746 |
Capitalization: | ||
Common stock, $1 par (authorized - 120,000,000 shares; issued and outstanding - 56,459,346 and 55,007,433 shares) | 49,112 | 49,112 |
Additional paid-in capital | 1,363,441 | 1,229,083 |
Accumulated other comprehensive loss, net | (50,015) | (55,151) |
Retained earnings | 781,735 | 782,108 |
Total equity | 2,144,273 | 2,005,152 |
Long-term debt, less current maturities | 2,345,876 | 1,991,333 |
Total capitalization | 4,490,149 | 3,996,485 |
Current liabilities: | ||
Current maturities of long-term debt | 0 | 125,000 |
Short-term debt | 0 | 194,000 |
Accounts payable | 97,354 | 149,368 |
Customer deposits | 69,122 | 69,165 |
Accrued general taxes | 59,958 | 48,160 |
Accrued interest | 35,247 | 21,256 |
Deferred purchased gas costs | 76,242 | 60,755 |
Payable to parent | 64 | 844 |
Other current liabilities | 137,968 | 126,573 |
Total current liabilities | 475,955 | 795,121 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits, net | 566,305 | 539,050 |
Accumulated removal costs | 401,000 | 395,000 |
Other deferred credits and other long-term liabilities | 998,161 | 1,073,090 |
Total deferred income taxes and other credits | 1,965,466 | 2,007,140 |
Total capitalization and liabilities | $ 6,931,570 | $ 6,798,746 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par (in USD per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, issued (in shares) | 56,459,346 | 55,007,433 |
Common stock, outstanding (in shares) | 56,459,346 | 55,007,433 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating revenues: | ||||||
Gas operating revenues | $ 210,834 | $ 209,980 | $ 976,095 | $ 989,368 | $ 1,355,666 | $ 1,359,581 |
Utility infrastructure services revenues | 203,082 | 200,256 | 966,941 | 1,005,844 | 1,346,391 | 1,374,724 |
Total operating revenues | 791,226 | 725,230 | 2,384,793 | 2,271,780 | 3,232,930 | 3,058,434 |
Operating expenses: | ||||||
Net cost of gas sold | 36,321 | 35,068 | 264,615 | 292,854 | 356,925 | 393,141 |
Operations and maintenance | 101,764 | 109,652 | 304,964 | 321,190 | 407,924 | 414,289 |
Depreciation and amortization | 80,139 | 75,370 | 245,009 | 223,251 | 324,995 | 286,522 |
Taxes other than income taxes | 15,787 | 15,308 | 47,507 | 46,640 | 63,195 | 61,579 |
Utility infrastructure services expenses | 502,951 | 451,574 | 1,252,489 | 1,154,238 | 1,671,478 | 1,534,442 |
Total operating expenses | 736,962 | 686,972 | 2,114,584 | 2,038,173 | 2,824,517 | 2,689,973 |
Operating income (loss) | 54,264 | 38,258 | 270,209 | 233,607 | 408,413 | 368,461 |
Other income and (expenses): | ||||||
Net interest deductions | (28,311) | (27,434) | (83,141) | (80,662) | (111,705) | (106,502) |
Other income (deductions) | 1,799 | (1,158) | (11,046) | 6,827 | (7,788) | (4,448) |
Total other income and (expenses) | (26,512) | (28,592) | (94,187) | (73,835) | (119,493) | (110,950) |
Income (loss) before income taxes | 27,752 | 9,666 | 176,022 | 159,772 | 288,920 | 257,511 |
Income tax expense (benefit) | 6,689 | 3,141 | 42,073 | 35,031 | 63,065 | 63,294 |
Net income (loss) | 21,063 | 6,525 | 133,949 | 124,741 | 225,855 | 194,217 |
Net income attributable to noncontrolling interest | 2,790 | 1,172 | 5,169 | 2,523 | 5,357 | 2,695 |
Net income attributable to Southwest Gas Holdings, Inc. | $ 18,273 | $ 5,353 | $ 128,780 | $ 122,218 | $ 220,498 | $ 191,522 |
Earnings per share: | ||||||
Basic (in USD per share) | $ 0.32 | $ 0.10 | $ 2.31 | $ 2.26 | $ 3.97 | $ 3.60 |
Diluted (in USD per share) | $ 0.32 | $ 0.10 | $ 2.31 | $ 2.26 | $ 3.97 | $ 3.59 |
Weighted average shares: | ||||||
Basic (in shares) | 56,271 | 54,670 | 55,683 | 53,996 | 55,508 | 53,219 |
Diluted (in shares) | 56,357 | 54,748 | 55,753 | 54,063 | 55,577 | 53,287 |
Southwest Gas Corporation | ||||||
Operating revenues: | ||||||
Gas operating revenues | $ 210,834 | $ 209,980 | $ 976,095 | $ 989,368 | $ 1,355,666 | $ 1,359,581 |
Operating expenses: | ||||||
Net cost of gas sold | 36,321 | 35,068 | 264,615 | 292,854 | 356,925 | 393,141 |
Operations and maintenance | 101,159 | 109,039 | 303,567 | 319,572 | 406,169 | 412,330 |
Depreciation and amortization | 55,942 | 52,372 | 173,865 | 159,327 | 230,158 | 205,594 |
Taxes other than income taxes | 15,787 | 15,308 | 47,507 | 46,640 | 63,195 | 61,579 |
Total operating expenses | 209,209 | 211,787 | 789,554 | 818,393 | 1,056,447 | 1,072,644 |
Operating income (loss) | 1,625 | (1,807) | 186,541 | 170,975 | 299,219 | 286,937 |
Other income and (expenses): | ||||||
Net interest deductions | (26,103) | (23,619) | (75,152) | (70,063) | (100,115) | (92,000) |
Other income (deductions) | 1,751 | (1,353) | (10,947) | 6,185 | (7,615) | (5,194) |
Total other income and (expenses) | (24,352) | (24,972) | (86,099) | (63,878) | (107,730) | (97,194) |
Income (loss) before income taxes | (22,727) | (26,779) | 100,442 | 107,097 | 191,489 | 189,743 |
Income tax expense (benefit) | (6,754) | (6,767) | 20,874 | 20,351 | 35,496 | 43,456 |
Net income (loss) | (15,973) | (20,012) | 79,568 | 86,746 | 155,993 | 146,287 |
Net income attributable to Southwest Gas Holdings, Inc. | (15,973) | (20,012) | 155,993 | 146,287 | ||
Centuri | ||||||
Operating revenues: | ||||||
Utility infrastructure services revenues | $ 580,392 | $ 515,250 | $ 1,408,698 | $ 1,282,412 | $ 1,877,264 | $ 1,698,853 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income | $ 21,063 | $ 6,525 | $ 133,949 | $ 124,741 | $ 225,855 | $ 194,217 |
Defined benefit pension plans: | ||||||
Net actuarial loss | 0 | 0 | 0 | 0 | (54,026) | (15,524) |
Amortization of prior service cost | 220 | 241 | 659 | 724 | 901 | 977 |
Amortization of net actuarial loss | 7,187 | 4,442 | 21,563 | 13,325 | 26,004 | 19,713 |
Prior service cost | 0 | 0 | 0 | 0 | (1,426) | 0 |
Regulatory adjustment | (6,380) | (4,065) | (19,140) | (12,193) | 21,130 | (1,214) |
Net defined benefit pension plans | 1,027 | 618 | 3,082 | 1,856 | (7,417) | 3,952 |
Forward-starting interest rate swaps (“FSIRS”): | ||||||
Amounts reclassified into net income | 783 | 635 | 2,054 | 1,906 | 2,689 | 2,540 |
Net forward-starting interest rate swaps | 783 | 635 | 2,054 | 1,906 | 2,689 | 2,540 |
Foreign currency translation adjustments | 1,024 | (447) | (1,187) | 1,131 | (280) | (877) |
Total other comprehensive income (loss), net of tax | 2,834 | 806 | 3,949 | 4,893 | (5,008) | 5,615 |
Comprehensive income (loss) | 23,897 | 7,331 | 137,898 | 129,634 | 220,847 | 199,832 |
Comprehensive income attributable to noncontrolling interest | 2,790 | 1,172 | 5,169 | 2,523 | 5,357 | 2,695 |
Comprehensive income attributable to Southwest Gas Holdings, Inc. | 21,107 | 6,159 | 132,729 | 127,111 | 215,490 | 197,137 |
Southwest Gas Corporation | ||||||
Net income | (15,973) | (20,012) | 79,568 | 86,746 | 155,993 | 146,287 |
Defined benefit pension plans: | ||||||
Net actuarial loss | 0 | 0 | 0 | 0 | (54,026) | (15,524) |
Amortization of prior service cost | 220 | 241 | 659 | 724 | 901 | 977 |
Amortization of net actuarial loss | 7,187 | 4,442 | 21,563 | 13,325 | 26,004 | 19,713 |
Prior service cost | 0 | 0 | 0 | 0 | (1,426) | 0 |
Regulatory adjustment | (6,380) | (4,065) | (19,140) | (12,193) | 21,130 | (1,214) |
Net defined benefit pension plans | 1,027 | 618 | 3,082 | 1,856 | (7,417) | 3,952 |
Forward-starting interest rate swaps (“FSIRS”): | ||||||
Amounts reclassified into net income | 783 | 635 | 2,054 | 1,906 | 2,689 | 2,540 |
Net forward-starting interest rate swaps | 783 | 635 | 2,054 | 1,906 | 2,689 | 2,540 |
Total other comprehensive income (loss), net of tax | 1,810 | 1,253 | 5,136 | 3,762 | (4,728) | 6,492 |
Comprehensive income (loss) | $ (14,163) | $ (18,759) | $ 84,704 | $ 90,508 | $ 151,265 | $ 152,779 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ 21,063 | $ 6,525 | $ 133,949 | $ 124,741 | $ 225,855 | $ 194,217 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 80,139 | 75,370 | 245,009 | 223,251 | 324,995 | 286,522 | ||
Deferred income taxes | 37,752 | 46,099 | 45,815 | 60,930 | ||||
Changes in current assets and liabilities: | ||||||||
Accounts receivable, net of allowances | (42,139) | (19,615) | (76,769) | (33,818) | ||||
Accrued utility revenue | 42,600 | 41,400 | (700) | (1,200) | ||||
Deferred purchased gas costs | 59,899 | (36,608) | 38,016 | (54,797) | ||||
Accounts payable | (59,031) | (46,079) | (14,817) | 14,317 | ||||
Accrued taxes | 17,991 | (2,841) | 26,075 | (4,956) | ||||
Other current assets and liabilities | 121,185 | 74,048 | 121,274 | 18,730 | ||||
Gains on sale of equipment | (581) | (3,157) | (2,897) | (3,863) | ||||
Changes in undistributed stock compensation | 5,789 | 6,067 | 6,618 | 7,492 | ||||
Equity AFUDC | (3,413) | (3,179) | (4,395) | (5,772) | ||||
Changes in deferred charges and other assets | (19,174) | (15,855) | (24,370) | (11,096) | ||||
Changes in other liabilities and deferred credits | (52,018) | (9,786) | (54,996) | 33,243 | ||||
Net cash provided by operating activities | 487,818 | 378,486 | 609,704 | 499,949 | ||||
CASH FLOW FROM INVESTING ACTIVITIES: | ||||||||
Construction expenditures and property additions | (632,474) | (719,386) | (851,236) | (925,135) | ||||
Acquisition of businesses, net of cash acquired | (250) | (19,533) | (28,355) | (266,697) | ||||
Changes in customer advances | 7,691 | 15,049 | 11,643 | 17,461 | ||||
Other | 6,520 | 12,862 | 8,811 | 13,376 | ||||
Net cash used in investing activities | (618,513) | (711,008) | (859,137) | (1,160,995) | ||||
CASH FLOW FROM FINANCING ACTIVITIES: | ||||||||
Issuance of common stock, net | 90,635 | 129,341 | 119,240 | 391,509 | ||||
Dividends paid | (93,317) | (86,345) | (123,099) | (112,050) | ||||
Issuance of long-term debt, net | 650,619 | 482,614 | 699,601 | 566,793 | ||||
Retirement of long-term debt | (289,295) | (127,175) | (375,909) | (221,176) | ||||
Change in credit facility and commercial paper | (92,000) | 0 | (92,000) | 0 | ||||
Change in short-term debt | (157,000) | (122,000) | 24,000 | (1,500) | ||||
Principal payments on finance lease obligations | (151) | (161) | (202) | (387) | ||||
Withholding remittance - share-based compensation | (2,736) | (1,858) | (2,736) | (2,088) | ||||
Other | (1,445) | 1,167 | (3,888) | (456) | ||||
Net cash provided by financing activities | 105,310 | 275,583 | 245,007 | 620,645 | ||||
Effects of currency translation on cash and cash equivalents | (209) | 58 | (109) | (289) | ||||
Change in cash and cash equivalents | (25,594) | (56,881) | (4,535) | (40,690) | ||||
Cash and cash equivalents at beginning of period | 49,539 | 85,361 | 28,480 | 69,170 | ||||
Cash and cash equivalents at end of period | 23,945 | 28,480 | 23,945 | 28,480 | 23,945 | 28,480 | ||
SUPPLEMENTAL INFORMATION: | ||||||||
Interest paid, net of amounts capitalized | 63,743 | 62,165 | 103,836 | 99,159 | ||||
Income taxes paid (received), net | (16,006) | 371 | (13,625) | (16,669) | ||||
Southwest Gas Corporation | ||||||||
CASH FLOW FROM OPERATING ACTIVITIES: | ||||||||
Net income | (15,973) | (20,012) | 79,568 | 86,746 | 155,993 | 146,287 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 55,942 | 52,372 | 173,865 | 159,327 | 230,158 | 205,594 | ||
Deferred income taxes | 25,633 | 35,899 | 23,415 | 45,659 | ||||
Changes in current assets and liabilities: | ||||||||
Accounts receivable, net of allowances | 70,129 | 66,527 | (7,135) | (3,436) | ||||
Accrued utility revenue | 42,600 | 41,400 | (700) | (1,200) | ||||
Deferred purchased gas costs | 59,899 | (36,608) | 38,016 | (54,797) | ||||
Accounts payable | (50,314) | (77,311) | (476) | (686) | ||||
Accrued taxes | 15,914 | (4,419) | 29,228 | (7,125) | ||||
Other current assets and liabilities | 74,892 | 87,869 | 76,194 | 31,579 | ||||
Changes in undistributed stock compensation | 4,492 | 4,710 | 4,928 | 5,796 | ||||
Equity AFUDC | (3,413) | (3,179) | (4,395) | (5,772) | ||||
Changes in deferred charges and other assets | (27,688) | (21,098) | (38,357) | (17,122) | ||||
Changes in other liabilities and deferred credits | (52,532) | (10,357) | (55,536) | 19,762 | ||||
Net cash provided by operating activities | 413,045 | 329,506 | 451,333 | 364,539 | ||||
CASH FLOW FROM INVESTING ACTIVITIES: | ||||||||
Construction expenditures and property additions | (525,221) | (587,405) | (716,564) | (784,237) | ||||
Changes in customer advances | 7,691 | 15,049 | 11,643 | 17,461 | ||||
Other | 183 | (51) | 139 | (1,353) | ||||
Net cash used in investing activities | (517,347) | (572,407) | (704,782) | (768,129) | ||||
CASH FLOW FROM FINANCING ACTIVITIES: | ||||||||
Contributions from parent | 131,961 | 126,186 | 165,711 | 149,091 | ||||
Dividends paid | (77,500) | (71,000) | (102,400) | (93,000) | ||||
Issuance of long-term debt, net | 446,508 | 297,222 | 446,508 | 297,222 | ||||
Retirement of long-term debt | (125,000) | 0 | $ (125,000) | $ 0 | ||||
Change in credit facility and commercial paper | (92,000) | 0 | (92,000) | 0 | ||||
Change in short-term debt | (194,000) | (122,000) | (30,000) | 21,000 | ||||
Withholding remittance - share-based compensation | (2,736) | (1,857) | (2,737) | (2,087) | ||||
Other | (1,186) | (801) | (1,210) | (890) | ||||
Net cash provided by financing activities | 86,047 | 227,750 | 258,872 | 371,336 | ||||
Change in cash and cash equivalents | (18,255) | (15,151) | 5,423 | (32,254) | ||||
Cash and cash equivalents at beginning of period | 40,489 | 31,962 | 16,811 | 49,065 | ||||
Cash and cash equivalents at end of period | $ 22,234 | $ 16,811 | 22,234 | 16,811 | 22,234 | 16,811 | ||
SUPPLEMENTAL INFORMATION: | ||||||||
Interest paid, net of amounts capitalized | 57,168 | 51,720 | 94,106 | 82,539 | ||||
Income taxes paid (received), net | $ (22,962) | $ (22) | $ (22,262) | $ (17,164) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Southwest Gas Corporation | Common Stock | Common StockSouthwest Gas Corporation | Additional paid-in capital | Additional paid-in capitalSouthwest Gas Corporation | Accumulated other comprehensive loss | Accumulated other comprehensive lossSouthwest Gas Corporation | Retained earnings | Retained earningsSouthwest Gas Corporation | Southwest Gas Holdings, Inc. | Noncontrolling interest |
Beginning balance (in shares) at Dec. 31, 2018 | 53,026,000 | |||||||||||
Beginning balance at Dec. 31, 2018 | $ 54,656 | $ 1,305,769 | $ 1,065,242 | $ (52,668) | $ (49,049) | $ 944,285 | $ 717,155 | $ (452) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Common stock issuances (in shares) | 1,598,000 | |||||||||||
Common stock issuances | $ 1,598 | 132,416 | ||||||||||
Change in ownership of noncontrolling interest | (452) | 452 | ||||||||||
Foreign currency exchange translation adjustment | 1,131 | |||||||||||
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax | 1,856 | 1,856 | ||||||||||
FSIRS amounts reclassified to net income, net of tax | $ 1,906 | $ 1,906 | 1,906 | 1,906 | ||||||||
Net income | 122,218 | 86,746 | ||||||||||
Share-based compensation | 3,317 | (465) | ||||||||||
Contributions from Southwest Gas Holdings, Inc. | 126,186 | |||||||||||
Dividends declared | (89,005) | (72,400) | ||||||||||
Redemption value adjustments | 0 | |||||||||||
Ending balance (in shares) at Sep. 30, 2019 | 54,624,000 | 47,482,000 | ||||||||||
Ending balance at Sep. 30, 2019 | $ 2,423,710 | 1,929,606 | $ 56,254 | $ 49,112 | 1,437,733 | 1,194,745 | (47,775) | (45,287) | 977,498 | 731,036 | $ 2,423,710 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Dividends declared per share (in USD per share) | $ 1.635 | |||||||||||
Beginning balance (in shares) at Jun. 30, 2019 | 54,321,000 | |||||||||||
Beginning balance at Jun. 30, 2019 | $ 55,951 | 1,409,923 | 1,169,549 | (48,581) | (46,540) | 1,002,070 | 776,101 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Common stock issuances (in shares) | 303,000 | |||||||||||
Common stock issuances | $ 303 | 27,810 | ||||||||||
Change in ownership of noncontrolling interest | 0 | 0 | ||||||||||
Foreign currency exchange translation adjustment | (447) | |||||||||||
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax | 618 | 618 | ||||||||||
FSIRS amounts reclassified to net income, net of tax | $ 635 | 635 | 635 | 635 | ||||||||
Net income | 5,353 | (20,012) | ||||||||||
Share-based compensation | 1,102 | (153) | ||||||||||
Contributions from Southwest Gas Holdings, Inc. | 24,094 | |||||||||||
Dividends declared | (29,925) | (24,900) | ||||||||||
Redemption value adjustments | 0 | |||||||||||
Ending balance (in shares) at Sep. 30, 2019 | 54,624,000 | 47,482,000 | ||||||||||
Ending balance at Sep. 30, 2019 | $ 2,423,710 | 1,929,606 | $ 56,254 | $ 49,112 | 1,437,733 | 1,194,745 | (47,775) | (45,287) | 977,498 | 731,036 | 2,423,710 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Dividends declared per share (in USD per share) | $ 0.545 | |||||||||||
FSIRS amounts reclassified to net income, net of tax | $ 2,689 | 2,689 | ||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 56,459,346 | 56,459,000 | 47,482,000 | |||||||||
Ending balance at Sep. 30, 2020 | $ 2,619,238 | 2,144,273 | $ 58,089 | $ 49,112 | 1,559,814 | 1,363,441 | (52,783) | (50,015) | 1,054,118 | 781,735 | 2,619,238 | 0 |
Beginning balance (in shares) at Dec. 31, 2019 | 55,007,433 | 55,007,000 | ||||||||||
Beginning balance at Dec. 31, 2019 | $ 56,637 | 1,466,937 | 1,229,083 | (56,732) | (55,151) | 1,039,072 | 782,108 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Common stock issuances (in shares) | 1,452,000 | |||||||||||
Common stock issuances | $ 1,452 | 92,877 | ||||||||||
Change in ownership of noncontrolling interest | 0 | 0 | ||||||||||
Foreign currency exchange translation adjustment | (1,187) | |||||||||||
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax | 3,082 | 3,082 | ||||||||||
FSIRS amounts reclassified to net income, net of tax | $ 2,054 | 2,054 | 2,054 | 2,054 | ||||||||
Net income | 128,780 | 79,568 | ||||||||||
Share-based compensation | 2,397 | (641) | ||||||||||
Contributions from Southwest Gas Holdings, Inc. | 131,961 | |||||||||||
Dividends declared | (96,161) | (79,300) | ||||||||||
Redemption value adjustments | $ 17,573 | (17,573) | ||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 56,459,346 | 56,459,000 | 47,482,000 | |||||||||
Ending balance at Sep. 30, 2020 | $ 2,619,238 | 2,144,273 | $ 58,089 | $ 49,112 | 1,559,814 | 1,363,441 | (52,783) | (50,015) | 1,054,118 | 781,735 | 2,619,238 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Dividends declared per share (in USD per share) | $ 1.71 | |||||||||||
Beginning balance (in shares) at Jun. 30, 2020 | 55,910,000 | |||||||||||
Beginning balance at Jun. 30, 2020 | $ 57,540 | 1,523,630 | 1,329,843 | (55,617) | (51,825) | 1,085,742 | 824,847 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Common stock issuances (in shares) | 549,000 | |||||||||||
Common stock issuances | $ 549 | 36,184 | ||||||||||
Change in ownership of noncontrolling interest | 0 | 0 | ||||||||||
Foreign currency exchange translation adjustment | 1,024 | |||||||||||
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax | 1,027 | 1,027 | ||||||||||
FSIRS amounts reclassified to net income, net of tax | $ 783 | 783 | 783 | 783 | ||||||||
Net income | 18,273 | (15,973) | ||||||||||
Share-based compensation | 1,137 | (139) | ||||||||||
Contributions from Southwest Gas Holdings, Inc. | 32,461 | |||||||||||
Dividends declared | (32,324) | (27,000) | ||||||||||
Redemption value adjustments | $ 17,600 | (17,573) | ||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 56,459,346 | 56,459,000 | 47,482,000 | |||||||||
Ending balance at Sep. 30, 2020 | $ 2,619,238 | $ 2,144,273 | $ 58,089 | $ 49,112 | $ 1,559,814 | $ 1,363,441 | $ (52,783) | $ (50,015) | $ 1,054,118 | $ 781,735 | $ 2,619,238 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Dividends declared per share (in USD per share) | $ 0.57 |
Background, Organization, and S
Background, Organization, and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background, Organization, and Summary of Significant Accounting Policies | Note 1 – Background, Organization, and Summary of Significant Accounting Policies Nature of Operations. Southwest Gas Holdings, Inc. is a holding company, owning all of the shares of common stock of Southwest Gas Corporation (“Southwest” or the “natural gas operations” segment) and all of the shares of common stock of Centuri Group, Inc. (“Centuri,” or the “utility infrastructure services” segment). Southwest is engaged in the business of purchasing, distributing, and transporting natural gas for customers in portions of Arizona, Nevada, and California. Public utility rates, practices, facilities, and service territories of Southwest are subject to regulatory oversight. The timing and amount of rate relief can materially impact results of operations. Natural gas purchases and the timing of related recoveries can materially impact liquidity. Results for the natural gas operations segment are higher during winter periods due to the seasonality incorporated in its regulatory rate structures. Centuri is a comprehensive utility infrastructure services enterprise dedicated to delivering a diverse array of solutions to North America’s gas and electric providers. Centuri derives revenue primarily from installation, replacement, repair, and maintenance of energy distribution systems. Centuri operations are generally conducted under the business names of NPL Construction Co. (“NPL”), NPL Canada Ltd. (“NPL Canada”), New England Utility Constructors, Inc. (“Neuco”), and Linetec Services, LLC (“Linetec”). Utility infrastructure services activity is seasonal in most of Centuri’s operating areas. Peak periods are the summer and fall months in colder climate areas, such as the northeastern and midwestern United States (“U.S.”) and in Canada. In warmer climate areas, such as the southwestern and southeastern U.S., utility infrastructure services activity continues year round. Basis of Presentation. The condensed consolidated financial statements of Southwest Gas Holdings, Inc. and subsidiaries (the “Company”) and Southwest included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The year-end condensed balance sheet data was derived from audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. No substantive change has occurred with regard to the Company’s business segments on the whole. The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring items and estimates necessary for a fair depiction of results for the interim periods, have been made. Globally, the novel Coronavirus (“COVID-19”) pandemic has created volatility, uncertainty, and economic disruption. Utility operations have been deemed “essential services” and utility infrastructure services have, to a large extent, been similarly characterized by government officials. Management has considered the impact of the pandemic and adjusted certain estimates, where relevant, used in the preparation of the condensed consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the 2019 Annual Report to Stockholders, which is incorporated by reference into the 2019 Form 10-K. Fair Value Measurements . Certain assets and liabilities are reported at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP states that a fair value measurement should be based on the assumptions that market participants would use in pricing the asset or liability and establishes a fair value hierarchy that ranks the inputs used to measure fair value by their reliability. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to fair values derived from unobservable inputs (Level 3 measurements). Financial assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities that a company has the ability to access at the measurement date. Level 2 – inputs other than quoted prices included within Level 1 that are observable for similar assets or liabilities, either directly or indirectly. Level 3 – unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The Company primarily used quoted market prices and other observable market pricing information in valuing cash and cash equivalents, derivatives, long-term debt outstanding, and assets of the qualified pension plan and postretirement benefit plans required to be recorded and/or disclosed at fair value. Other Property and Investments. Other property and investments on the Condensed Consolidated Balance Sheets includes: (Thousands of dollars) September 30, 2020 December 31, 2019 Southwest Gas Corporation: Net cash surrender value of COLI policies $ 133,761 $ 132,072 Other property 1,973 1,715 Total Southwest Gas Corporation 135,734 133,787 Centuri property, equipment, and intangibles 1,073,092 983,905 Centuri accumulated provision for depreciation and amortization (406,590) (352,333) Other property 22,833 18,814 Total Southwest Gas Holdings, Inc. $ 825,069 $ 784,173 Included in the table above are the net cash surrender values of company-owned life insurance (“COLI”) policies. These life insurance policies on members of management and other key employees are used by Southwest to indemnify itself against the loss of talent, expertise, and knowledge, as well as to provide indirect funding for certain nonqualified benefit plans. Balances reflect impacts of equity and fixed-income securities underlying the cash surrender values at each reporting date; however, ultimately, only the insurance proceeds are ever actually received, due to management’s intent to hold the policies to maturity. Cash and Cash Equivalents. For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and financial instruments with original maturities of three months or less. Such investments are carried at cost, which approximates market value. Cash and cash equivalents of Southwest and the Company include money market fund investments totaling approximately $40,000 for both entities at September 30, 2020, and $23.5 million and $26.7 million, for each, respectively, at December 31, 2019, which fall within Level 2 of the fair value hierarchy, due to the asset valuation methods used by money market funds. Typical non-cash investing activities for Southwest include customer advances applied as contributions toward utility construction activity, capital expenditures that were not paid as of period-end reporting dates but rather included in accounts payable, and right-of-use assets obtained in exchange for lease liabilities, which are non-cash investing and financing activities. Amounts related to such activities were immaterial for the periods presented herein. Intercompany Transactions . Centuri recognizes revenues generated from contracts with Southwest (see Note 7 – Segment Information ). The accounts receivable balance, revenues, and associated profits are included in the condensed consolidated financial statements of the Company and Southwest and were not eliminated during consolidation in accordance with accounting treatment for rate-regulated entities. Accounts Receivable, net of allowances. Business activity with respect to natural gas utility operations is conducted with customers located within the three-state region of Arizona, Nevada, and California. Southwest’s accounts receivable are short-term in nature with no billing due dates customarily extending beyond one month, with customers’ credit worthiness assessed upon account creation by evaluation of other utility service and related payment history. Although Southwest seeks to minimize its credit risk related to utility operations by requiring security deposits from new customers, imposing late fees, and actively pursuing collection on overdue accounts, some accounts are ultimately not collected. Customer accounts are subject to collection procedures that vary by jurisdiction (late fee assessment, noticing requirements for disconnection of service, and procedures for actual disconnection and/or reestablishment of service). After disconnection of service, accounts are customarily written off approximately two months after inactivation. Dependent upon the jurisdiction, reestablishment of service requires both payment of previously unpaid balances and additional deposit requirements. Provisions for uncollectible accounts are recorded monthly based on experience, consideration of current and expected future conditions, customer and rate composition, and write-off processes. They are included in the ratemaking process as a cost of service. The Nevada jurisdictions have a regulatory mechanism associated with the gas-cost-related portion of uncollectible accounts. Such amounts are deferred and collected through a surcharge in the ratemaking process. Due to the ongoing COVID-19 pandemic, Southwest continued the moratorium initiated in March 2020 on disconnection of natural gas service for non-payment and also ceased charging late fees until further notice. While the moratorium continues to be in place, Southwest is actively working with customers experiencing financial hardship by means of flexible payment options. Management continues to monitor expected credit losses in light of the evolving financial impact of COVID-19. The allowance as of September 30, 2020 reflects the expected impact from the pandemic on balances as of that date, including consideration of customers’ ability to pay currently and once the moratorium is lifted. Utility infrastructure services contracts receivable are recorded at face amounts less an allowance for doubtful accounts. Centuri’s customers are generally investment-grade gas and electric utility companies for which Centuri has historically recognized an insignificant amount of write-offs. Centuri’s trade accounts receivable balances carry standard payment terms of up to 60 days. Centuri maintains an allowance that is an estimate based on historical collection experience, current and estimated future economic and market conditions, and a review of the current status of each customer's trade accounts receivable balance. Account balances are monitored at least monthly, and are charged off against the allowance when management determines it is probable the balance will not be recovered. Centuri has not been significantly impacted, nor does it anticipate it will experience significant difficulty in collecting amounts due, as a result of the current environment surrounding COVID-19 given the nature of its customers. Activity between periods in the allowance for uncollectibles and the balances as of the periods presented within the Company’s and Southwest’s financial statements were not material to the condensed consolidated financial statements overall. Income Taxes. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. The CARES Act provides a number of tax provisions and stimulus measures, including changes to prior and future limitations on interest deductions, the ability to accelerate refund of Alternative Minimum Tax credits, elective deferment of payment related to the employer portion of Social Security taxes, and the creation of certain refundable employee retention credits, among other things. Management does not anticipate the impacts related to the CARES Act to have a material effect on the Company’s or Southwest’s results of operations, financial position, or liquidity. Prepaid and other current assets. Prepaid and other current assets includes gas pipe materials and operating supplies of $55 million at September 30, 2020 and $57 million at December 31, 2019 (carried at weighted average cost), in addition to $33 million at December 31, 2019 related to a regulatory asset associated with the Arizona decoupling mechanism (an alternative revenue program), with no corresponding asset balance at September 30, 2020. Goodwill. Goodwill is assessed as of October 1 st each year for impairment, or more frequently, if circumstances indicate an impairment to the carrying value of goodwill may have occurred. Management of the Company and Southwest considered its reporting units and segments and determined that its segments and reporting units remain consistent between periods presented below, and that no change was necessary with regard to the level at which goodwill is assessed for impairment. Since December 31, 2019, management also qualitatively assessed whether events during the first nine months of 2020 may have resulted in conditions whereby the carrying value of goodwill was higher than its fair value, which if the case, could be an indication of a permanent impairment. Through this assessment, no such condition was believed to have existed and therefore, no impairment was deemed to have occurred. Goodwill on Southwest’s and the Company’s Condensed Consolidated Balance Sheets includes: (Thousands of dollars) Natural Gas Utility Infrastructure Total Company December 31, 2019 $ 10,095 $ 332,928 $ 343,023 Foreign currency translation adjustment — (2,826) (2,826) September 30, 2020 $ 10,095 $ 330,102 $ 340,197 Other Current Liabilities . Management recognizes in its balance sheets various liabilities that are expected to be settled through future cash payment within the next twelve months, including amounts payable under regulatory mechanisms, customary accrued expenses for employee compensation and benefits, declared but unpaid dividends, and miscellaneous other accrued liabilities. Other current liabilities for Southwest includes $27 million and $25.2 million of dividends declared by Southwest Gas Corporation, but not yet paid to Southwest Gas Holdings, Inc. as of September 30, 2020 and December 31, 2019, respectively. Other Income (Deductions). The following table provides the composition of significant items included in Other income (deductions) in the Condensed Consolidated Statements of Income: Three Months Ended September 30, Nine Months Ended Twelve Months Ended September 30, (Thousands of dollars) 2020 2019 2020 2019 2020 2019 Southwest Gas Corporation - natural gas operations segment: Change in COLI policies $ 4,500 $ 200 $ 1,000 $ 11,200 $ 7,200 $ 2,000 Interest income 1,412 1,521 3,214 4,940 4,630 6,659 Equity AFUDC 1,232 1,212 3,413 3,179 4,395 5,772 Other components of net periodic benefit cost (5,005) (3,765) (15,016) (11,295) (18,780) (16,560) Miscellaneous income and (expense) (388) (521) (3,558) (1,839) (5,060) (3,065) Southwest Gas Corporation - total other income (deductions) 1,751 (1,353) (10,947) 6,185 (7,615) (5,194) Utility infrastructure services segment: Interest income — — — — — 82 Foreign transaction gain (loss) — (6) (16) 546 (16) 66 Miscellaneous income and (expense) 48 177 (91) 23 (194) 514 Centuri - total other income (deductions) 48 171 (107) 569 (210) 662 Corporate and administrative — 24 8 73 37 84 Consolidated Southwest Gas Holdings, Inc. - total other income (deductions) $ 1,799 $ (1,158) $ (11,046) $ 6,827 $ (7,788) $ (4,448) Included in the table above is the change in cash surrender values of COLI policies (including net death benefits recognized). Current tax regulations provide for tax-free treatment of life insurance (death benefit) proceeds. Therefore, changes in the cash surrender values of COLI policies, as they progress towards the ultimate death benefits, are also recorded without tax consequences. Refer to Other Property and Investments above and also to Note 2 – Components of Net Periodic Benefit Cost . Derivatives . In managing its natural gas supply portfolios, Southwest has historically entered into fixed- and variable-price contracts, which qualify as derivatives. Additionally, Southwest has utilized fixed-for-floating swap contracts (“Swaps”) to supplement its fixed-price contracts. The fixed-price contracts, firm commitments to purchase a fixed amount of gas in the future at a fixed price, qualify for the normal purchases and normal sales exception that is allowed for contracts that are probable of delivery in the normal course of business, and are exempt from fair value reporting. The variable-price contracts qualify as derivative instruments; however, because the contract prices are the prevailing prices at the future transaction dates, the contracts have no determinable fair value. The Swap contract prices are determined at the beginning of each month to reflect that month’s published first of month index price and are recorded at fair value (Level 2). Southwest does not utilize derivative financial instruments for speculative purposes, nor does it have trading operations. Management does not currently anticipate entering into new Swaps in the near term; the remaining Swaps as of September 30, 2020 matured in October 2020. Previously, Southwest entered into two forward-starting interest rate swaps (“FSIRS”). One of the FSIRS became fully amortized in the current quarter with one FSIRS remaining to be amortized through 2022. The settled position for the remaining FSIRS is immaterial and will continue to be amortized from Accumulated other comprehensive income (loss) into interest expense. Redeemable Noncontrolling Interest. In connection with the acquisition of Linetec in November 2018, the previous owner retained a 20% equity interest in Linetec, the reduction of which is subject to certain rights based on the passage of time or upon the occurrence of certain triggering events. Significant changes in the value of the redeemable noncontrolling interest, above a floor established at the acquisition date, are recognized as they occur, and the carrying value is adjusted as necessary at each reporting date. The fair value is estimated using a market approach that utilizes certain financial metrics from guideline public companies of similar industry and operating characteristics. Based on the fair value model employed, the estimated redemption value of the redeemable noncontrolling interest increased by approximately $17.6 million during the third quarter of 2020. Adjustment to the redemption value also impacts retained earnings, as reflected in the Company’s Condensed Consolidated Statement of Equity, but does not impact net income. The following depicts the change to the balance of the redeemable noncontrolling interest: (Thousands of dollars): Redeemable Noncontrolling Interest Balance, December 31, 2019 $ 84,542 Net income attributable to redeemable noncontrolling interest 5,169 Redemption value adjustment 17,573 Balance, September 30, 2020 $ 107,284 Earnings Per Share. Basic earnings per share (“EPS”) in each period of this report were calculated by dividing net income attributable to Southwest Gas Holdings, Inc. by the weighted-average number of shares during those periods. Diluted EPS includes additional weighted-average common stock equivalents (performance shares and restricted stock units). Unless otherwise noted, the term “Earnings Per Share” refers to Basic EPS. A reconciliation of the denominator used in Basic and Diluted EPS calculations is shown in the following table: Three Months Ended Nine Months Ended Twelve Months Ended (In thousands) 2020 2019 2020 2019 2020 2019 Weighted average basic shares 56,271 54,670 55,683 53,996 55,508 53,219 Effect of dilutive securities: Management Incentive Plan shares — 12 — 11 3 15 Restricted stock units (1) 86 66 70 56 66 53 Weighted average diluted shares 56,357 54,748 55,753 54,063 55,577 53,287 (1) The number of securities includ ed 76,000 and 55,000 performance shares during the three months ending September 30, 2020 and 2019, 63,000 and 48,000 performance shares during the nine months ending September 30, 2020 and 2019, and 57,000 and 44,000 performance shares during the twelve months ending September 30, 2020 and 2019, respectively, the total of which was derived by assuming that target performance will be achi eved during the relevant performance period. Recent Accounting Standards Updates. Accounting pronouncements adopted in 2020: In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13 update “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The update requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company and Southwest adopted the update in the first quarter of 2020, and concluded the impact was not material to the consolidated financial statements of the Company or Southwest. See Accounts receivable, net of allowances above. In January 2017, the FASB issued ASU 2017-04 “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Under the update, an entity will apply a one-step quantitative test as opposed to a two-step test as previously required, and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment. The Company and Southwest adopted the update in the first quarter of 2020 and will apply the update prospectively in its periodic goodwill impairment tests. In August 2018, the FASB issued ASU 2018-15 “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The update generally aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement (that is a service contract) with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, with the exception that such costs are to be included in the same line item in the balance sheet that a prepayment of the fees associated with the arrangement would be presented. Once capitalized, the update requires the entity to expense the amount capitalized over the term of the hosting arrangement, including reasonably certain renewal periods. The Company and Southwest adopted the update in the first quarter of 2020 using the prospective transition method, which did not result in a material impact to the Company’s or Southwest’s consolidated financial statements. Recently issued accounting pronouncements that will be effective after 2020: In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The update simplifies the accounting for income taxes by removing certain exceptions to the general principles, as well as improving consistent application in Topic 740 by clarifying and amending existing guidance. The update is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted for periods for which financial statements have not yet been made available for issuance. Management is evaluating the impacts this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures. In March 2020, the FASB issued ASU 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The update provides optional guidance for a limited time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting, including when modifying a contract (during the eligibility period covered by the update to Topic 848) to replace a reference rate affected by reference rate reform. The update applies only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The guidance was eligible to be applied upon issuance on March 12, 2020, and can generally be applied through December 31, 2022. Management will monitor the impacts this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures, and will reflect such appropriately, in the event that the optional guidance is elected. See also LIBOR discussion in Note 5 – Debt . In August 2020, the FASB issued ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The update, amongst other amendments, improves the guidance related to the disclosures and earnings-per-share for convertible instruments and contracts in an entity’s own equity. The update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years; early adoption is permitted. Management is evaluating the impacts this update might have on the Company’s consolidated financial statements and disclosures. |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Note 2 – Components of Net Periodic Benefit Cost Southwest has a noncontributory qualified retirement plan with defined benefits covering substantially all employees and a separate unfunded supplemental retirement plan (“SERP”) which is limited to officers. Southwest also provides postretirement benefits other than pensions (“PBOP”) to its qualified retirees for health care, dental, and life insurance. The service cost component of net periodic benefit costs included in the table below is a component of an overhead loading process associated with the cost of labor. The overhead process ultimately results in allocation of that portion of overall net periodic benefit costs to the same accounts to which productive labor is charged. As a result, service costs become components of various accounts, primarily operations and maintenance expense, net utility plant, and deferred charges and other assets for both the Company and Southwest. The other components of net periodic benefit cost are reflected in Other income (deductions) on the Condensed Consolidated Statements of Income of each entity. Qualified Retirement Plan September 30, Three Months Nine Months Twelve Months 2020 2019 2020 2019 2020 2019 (Thousands of dollars) Service cost $ 8,576 $ 6,466 $ 25,725 $ 19,398 $ 32,191 $ 26,536 Interest cost 11,388 12,252 34,165 36,755 46,416 47,799 Expected return on plan assets (16,324) (15,061) (48,972) (45,183) (64,033) (59,872) Amortization of net actuarial loss 9,006 5,589 27,019 16,767 32,608 24,796 Net periodic benefit cost $ 12,646 $ 9,246 $ 37,937 $ 27,737 $ 47,182 $ 39,259 SERP September 30, Three Months Nine Months Twelve Months 2020 2019 2020 2019 2020 2019 (Thousands of dollars) Service cost $ 97 $ 66 $ 292 $ 199 $ 359 $ 261 Interest cost 401 440 1,204 1,320 1,644 1,734 Amortization of net actuarial loss 451 255 1,353 765 1,608 1,141 Net periodic benefit cost $ 949 $ 761 $ 2,849 $ 2,284 $ 3,611 $ 3,136 PBOP September 30, Three Months Nine Months Twelve Months 2020 2019 2020 2019 2020 2019 (Thousands of dollars) Service cost $ 395 $ 319 $ 1,186 $ 957 $ 1,505 $ 1,325 Interest cost 646 761 1,936 2,285 2,697 2,972 Expected return on plan assets (852) (789) (2,556) (2,367) (3,345) (3,296) Amortization of prior service costs 289 318 867 953 1,185 1,286 Net periodic benefit cost $ 478 $ 609 $ 1,433 $ 1,828 $ 2,042 $ 2,287 |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 3 – Revenue The following information about the Company’s revenues is presented by segment. Southwest encompasses the natural gas operations segment and Centuri encompasses the utility infrastructure services segment. Natural Gas Operations Segment : Gas operating revenues on the Condensed Consolidated Statements of Income of both the Company and Southwest include revenue from contracts with customers, which is shown below, disaggregated by customer type, and various categories of revenue: Three Months Ended Nine Months Ended Twelve Months Ended September 30, (Thousands of dollars) 2020 2019 2020 2019 2020 2019 Residential $ 131,008 $ 124,169 $ 690,861 $ 706,270 $ 957,379 $ 961,928 Small commercial 35,204 39,725 159,122 179,519 228,720 250,986 Large commercial 9,942 10,945 32,588 36,030 45,493 49,288 Industrial/other 5,888 3,837 19,089 15,728 25,435 21,826 Transportation 21,040 21,580 65,281 68,297 89,364 90,696 Revenue from contracts with customers 203,082 200,256 966,941 1,005,844 1,346,391 1,374,724 Alternative revenue program revenues (deferrals) 9,199 7,957 9,545 (23,196) 7,629 (23,913) Other revenues (1) (1,447) 1,767 (391) 6,720 1,646 8,770 Total Gas operating revenues $ 210,834 $ 209,980 $ 976,095 $ 989,368 $ 1,355,666 $ 1,359,581 (1) Amounts include late fees and other miscellaneous revenues, and may also include the impact of certain regulatory mechanisms, such as cost-of-service components in current customer rates that are expected to be returned to customers in future periods. Utility Infrastructure Services Segment : The following tables display Centuri’s revenue, reflected as Utility infrastructure services revenues on the Condensed Consolidated Statements of Income of the Company, representing revenue from contracts with customers disaggregated by service and contract types: Three Months Ended Nine Months Ended Twelve Months Ended September 30, (Thousands of dollars) 2020 2019 2020 2019 2020 2019 Service Types: Gas infrastructure services $ 387,578 $ 364,241 $ 935,444 $ 885,950 $ 1,288,468 $ 1,160,017 Electric power infrastructure services 115,386 70,610 282,992 184,277 346,432 202,844 Other 77,428 80,399 190,262 212,185 242,364 335,992 Total Utility infrastructure services revenues $ 580,392 $ 515,250 $ 1,408,698 $ 1,282,412 $ 1,877,264 $ 1,698,853 Three Months Ended Nine Months Ended Twelve Months Ended September 30, (Thousands of dollars) 2020 2019 2020 2019 2020 2019 Contract Types: Master services agreement $ 437,914 $ 410,283 $ 1,076,961 $ 1,021,798 $ 1,438,540 $ 1,291,397 Bid contract 142,478 104,967 331,737 260,614 438,724 407,456 Total Utility infrastructure services revenues $ 580,392 $ 515,250 $ 1,408,698 $ 1,282,412 $ 1,877,264 $ 1,698,853 Unit price contracts $ 377,284 $ 415,404 $ 985,673 $ 1,006,577 $ 1,359,352 $ 1,316,404 Fixed price contracts 46,379 37,539 109,935 80,503 142,356 152,890 Time and materials contracts 156,729 62,307 313,090 195,332 375,556 229,559 Total Utility infrastructure services revenues $ 580,392 $ 515,250 $ 1,408,698 $ 1,282,412 $ 1,877,264 $ 1,698,853 The following table provides information about contracts receivable and revenue earned on contracts in progress in excess of billings (contract asset), which are both included within Accounts receivable, net of allowances, as well as amounts billed in excess of revenue earned on contracts (contract liability), which are included in Other current liabilities as of September 30, 2020 and December 31, 2019 on the Company’s Condensed Consolidated Balance Sheets: (Thousands of dollars) September 30, 2020 December 31, 2019 Contracts receivable, net $ 275,598 $ 223,904 Revenue earned on contracts in progress in excess of billings 156,754 99,399 Amounts billed in excess of revenue earned on contracts 5,522 4,525 The revenue earned on contracts in progress in excess of billings (contract asset) primarily relates to Centuri’s rights to consideration for work completed but not billed and/or approved for billing at the reporting date. These contract assets are transferred to contracts receivable when the rights become unconditional. The amounts billed in excess of revenue earned (contract liability) primarily relate to the advance consideration received from customers for which work has not yet been completed. The change in this contract liability balance from December 31, 2019 to September 30, 2020 is due to revenue recognized of $4.5 million that was included in this item as of January 1, 2020, after which time it became earned and the balance was reduced, and to increases due to cash received, net of revenue recognized during the period related to contracts that commenced during the period. For contracts that have an original duration of one year or less, Centuri uses the practical expedient applicable to such contracts and does not consider/compute an interest component based on the time value of money. Further, because of the short duration of these contracts, Centuri has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize the revenue. As of September 30, 2020, Centuri had 23 c ontracts with an original duration of more than one year. The aggregate amount of the transaction price allocated to the unsatisfied performance obligations of these contracts as of September 30, 2020 was $55.3 million. Centuri expects to recognize the remaining performance obligations over approximately the next year; however, the timing of that recognition is largely within the control of the customer, including when the necessary equipment and materials required to complete the work are provided by the customer. Utility infrastructure services contracts receivable consists of the following: (Thousands of dollars) September 30, 2020 December 31, 2019 Billed on completed contracts and contracts in progress $ 271,872 $ 216,268 Other receivables 5,214 8,456 Contracts receivable, gross 277,086 224,724 Allowance for doubtful accounts (1,488) (820) Contracts receivable, net $ 275,598 $ 223,904 |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Common Stock | Note 4 – Common Stock Only shares of the Company’s common stock are publicly traded on the New York Stock Exchange, under the ticker symbol “SWX.” Share-based compensation related to Southwest and Centuri is based on stock awards to be issued in shares of Southwest Gas Holdings, Inc. On May 8, 2019, the Company filed with the SEC an automatic shelf registration statement on Form S-3 (File No. 333-231297), which became effective upon filing, for the offer and sale of up to $300 million of common stock from time to time in at-the-market offerings under the prospectus included therein and in accordance with the Sales Agency Agreement, dated May 8, 2019, between the Company and BNY Mellon Capital Markets, LLC (the “Equity Shelf Program”). The following table provides the activity under the Equity Shelf Program for the three-month and life-to-date periods ended September 30, 2020: Three Months Ended Life-To-Date Ended September 30, 2020 Gross proceeds $ 32,788,633 $ 207,125,867 Less: agent commissions (327,886) (2,071,259) Net proceeds $ 32,460,747 $ 205,054,608 Number of shares sold 506,219 2,705,376 Weighted average price per share $ 64.77 $ 76.56 As of September 30, 2020, the Company had up to $92,874,133 of common stock available for sale under the program. Net proceeds from the sale of shares of common stock under the Equity Shelf Program are intended for general corporate purposes, including the acquisition of property for the construction, completion, extension, or improvement of pipeline systems and facilities located in and around the communities served by Southwest. During the nine months ended September 30, 2020, the Company issued approximately 96,000 shares of common stock through the Restricted Stock/Unit Plan and Management Incentive Plan. Additionally, during the nine months ended September 30, 2020, the Company issued 130,000 shares of common stock through the Dividend Reinvestment and Stock Purchase Plan, raising approximately $9 million. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 5 – Debt Long-Term Debt Long-term debt is recognized in the Company’s and Southwest’s Condensed Consolidated Balance Sheets generally at the carrying value of the obligations outstanding. However, details surrounding the fair value and individual carrying values of instruments are discussed below or provided in the table that follows. The fair values of Southwest’s revolving credit facility (including commercial paper) and the variable-rate Industrial Development Revenue Bonds (“IDRBs”) approximate their carrying values. The fair values of the revolving credit facility and IDRBs are categorized as Level 1 based on the FASB’s fair value hierarchy, due to Southwest’s ability to access similar debt arrangements at measurement dates with comparable terms, including variable/market rates. Additionally, the borrowings by Southwest under its revolving credit facility are generally repaid quickly and the IDRBs have interest rates that reset frequently. The fair values of Southwest’s debentures (which include senior and medium-term notes) were determined utilizing a market-based valuation approach, where fair values are determined based on evaluated pricing data, such as broker quotes and yields for similar securities adjusted for observable differences. Significant inputs used in the valuation generally include benchmark yield curves, credit ratings, and issuer spreads. The external credit rating, coupon rate, and maturity of each security are considered in the valuation, as applicable. The fair values of debentures are categorized as Level 2. The Centuri secured revolving credit and term loan facility and Centuri’s other debt obligations (not actively traded) are categorized as Level 3. Because Centuri’s debt is not publicly traded, fair values for its secured revolving credit and term loan facility and other debt obligations were based on a conventional discounted cash flow methodology utilizing current market pricing yield curves, across Centuri’s debt maturity spectrum, of other industrial bonds with an assumed credit rating comparable to the Company’s. September 30, 2020 December 31, 2019 Carrying Market Carrying Market (Thousands of dollars) Southwest Gas Corporation: Debentures: Notes, 4.45%, due 2020 $ — $ — $ 125,000 $ 126,673 Notes, 6.1%, due 2041 125,000 172,353 125,000 162,666 Notes, 3.875%, due 2022 250,000 260,388 250,000 258,550 Notes, 4.875%, due 2043 250,000 317,325 250,000 291,928 Notes, 3.8%, due 2046 300,000 335,970 300,000 308,307 Notes, 3.7%, due 2028 300,000 341,388 300,000 320,685 Notes, 4.15%, due 2049 300,000 361,053 300,000 330,138 Notes, 2.2%, due 2030 450,000 471,227 — — 8% Series, due 2026 75,000 99,423 75,000 96,905 Medium-term notes, 7.78% series, due 2022 25,000 26,944 25,000 27,500 Medium-term notes, 7.92% series, due 2027 25,000 33,716 25,000 32,543 Medium-term notes, 6.76% series, due 2027 7,500 9,569 7,500 9,156 Unamortized discount and debt issuance costs (18,091) (14,450) 2,089,409 1,768,050 Revolving credit facility and commercial paper 58,000 58,000 150,000 150,000 Industrial development revenue bonds: Variable-rate bonds: Tax-exempt Series A, due 2028 50,000 50,000 50,000 50,000 2003 Series A, due 2038 50,000 50,000 50,000 50,000 2008 Series A, due 2038 50,000 50,000 50,000 50,000 2009 Series A, due 2039 50,000 50,000 50,000 50,000 Unamortized discount and debt issuance costs (1,533) (1,717) 198,467 198,283 Less: current maturities — (125,000) Long-term debt, less current maturities - Southwest Gas Corporation $ 2,345,876 $ 1,991,333 Centuri: Centuri term loan facility $ 231,010 $ 236,477 $ 244,812 $ 252,182 Unamortized debt issuance costs (890) (1,101) 230,120 243,711 Centuri secured revolving credit facility 59,908 59,950 60,021 60,057 Centuri other debt obligations 94,721 97,120 43,929 44,787 Less: current maturities (44,903) (38,512) Long-term debt, less current maturities - Centuri $ 339,846 $ 309,149 Consolidated Southwest Gas Holdings, Inc.: Southwest Gas Corporation long-term debt $ 2,345,876 $ 2,116,333 Centuri long-term debt 384,749 347,661 Less: current maturities (44,903) (163,512) Long-term debt, less current maturities - Southwest Gas Holdings, Inc. $ 2,685,722 $ 2,300,482 Southwest has a $400 million credit facility, for which it has designated $150 million of associated capacity as long-term debt and the remaining $250 million, for working capital purposes. Interest rates for the credit facility are calculated at either LIBOR or an “alternate base rate,” plus in each case an applicable margin that is determined based on Southwest’s senior unsecured debt rating. At September 30, 2020, the applicable margin is 1% for loans bearing interest with reference to LIBOR and 0% for loans bearing interest with reference to the alternative base rate. At September 30, 2020, $58 million was outstanding on the long-term portion (including $50 million under the commercial paper program, discussed below) of the facility. On April 10, 2020, Southwest amended its credit facility agreement; total borrowing capacity under the amended agreement remains at $400 million. The amended agreement extended the maturity date from March 2022 to April 2025. Under the amended agreement, the applicable margin will range from 0.750% to 1.500% for loans bearing interest with reference to LIBOR and from 0.000% to 0.500% for loans bearing interest with reference to an alternate base rate. Upon the occurrence of certain events providing for a transition away from LIBOR, or if LIBOR is no longer a widely recognized benchmark rate, Southwest may further amend the credit facility with a replacement rate as set forth in the amended agreement. Southwest is also required to pay a commitment fee on the unfunded portion of the commitments based on its senior unsecured long-term debt rating. The commitment fee ranges from 0.075% to 0.200% per annum. The amended agreement contains certain representations and warranties and affirmative and negative covenants similar to those contained in the previous agreement. In addition, the amended agreement contains a financial covenant requiring Southwest to maintain a ratio of funded debt to total capitalization not to exceed 0.70 to 1.00 as of the end of any quarter of any fiscal year. Southwest has a $50 million commercial paper program. Issuances under the commercial paper program are supported by Southwest’s revolving credit facility and, therefore, do not represent additional borrowing capacity under the credit facility. Borrowings under the commercial paper program are designated a s long-term debt. Interest rates for the program are calculated at the then current commercial paper rate. At September 30, 2020, as noted above, $50 million of borrowings were outstanding under the commercial paper program. In June 2020, Southwest issued $450 million aggregate principal amount of 2.20% Senior Notes at a discount of 0.126%. The notes will mature in June 2030. A portion of the net proceeds was used to reduce borrowings under Southwest’s credit facility and to redeem the 4.45% $125 million N otes due in December 2020, which were redeemed in September 2020 after Southwest provided advance notice to the holders of its intention to redeem the notes in full at a redemption price of 100% plus accrued and unpaid interest. Centuri has a $590 million senior secured revolving credit and term loan facility, scheduled to expire in November 2023. The capacity of the line of credit portion of the facility is $325 million; related amounts borrowed and repaid are available to be re-borrowed. The term loan portion of the facility has a limit of approximately $265 million. The $590 million facility is secured by substantially all of Centuri’s assets except those explicitly excluded under the terms of the agreement (including owned real estate and certain certificated vehicles). Centuri’s assets securing the facility at September 30, 2020 totaled $1.4 billion . At September 30, 2020 , $291 million in bor rowings were outstanding under Centuri’s combined secured revolving credit and term loan facility. During 2020, Centuri also received proceeds of $70 million in equipment loans, which were used for repayment of outstanding borrowings on the line of credit. Short-Term Debt Southwest Gas Holdings, Inc. has a $100 million credit facility that is primarily used for short-term financing needs. There was $54 million outstanding under this credit facility as of September 30, 2020. Similar to Southwest amending its credit facility agreement, on April 10, 2020, Southwest Gas Holdings, Inc. also amended its existing credit facility, extending the maturity date to April 2025. The revolving borrowing capacity under the amended agreement remained at $100 million, the same as before the amendment. Interest rate benchmarks (LIBOR or an alternative) as well as related ranges, including with regard to the applicable margin, largely mirror those included in Southwest’s amended facility agreement noted above, determined in this case based on Southwest Gas Holdings, Inc.’s senior unsecured long-term debt rating. Similar to the Southwest facility amendment, upon the occurrence of certain events providing for a transition away from LIBOR, or if LIBOR is no longer a widely recognized benchmark rate, Southwest Gas Holdings, Inc. may amend its credit facility agreement with a replacement rate, as set forth in the amended agreement. The commitment fee rates, terms, and covenants, noted above for Southwest are also applicable to Southwest Gas Holdings, Inc. in its amended credit facility, including the noted ratio of funded debt to total capitalization as of the end of any quarter of any fiscal year. As discussed previously, under Southwest’s $400 million credit facility, $250 million has been designated by management for working capital purposes. Southwest had no short-term borrowings outstanding at September 30, 2020 under this facility. LIBOR It is currently anticipated that LIBOR may be discontinued as a benchmark or reference rate after 2021. As of September 30, 2020, $54 million, $8 million and $172 million , respectively, for the holding company, Southwest, and Centuri, were outstanding under credit facilities whereby interest was with reference to LIBOR and for which facility maturity dates extend beyond 2021. As of September 30, 2020, these LIBOR-based borrowings represent approximately 0.3% of Southwest’s total debt, and 8% of total debt (including current maturities) for the Company overall. Southwest and Southwest Gas Holdings, Inc., in accordance with the April 2020 amendments to their respective facilities, may make further amendments with replacement rates if LIBOR is discontinued. However, replacement rates are not currently determinable. In order to mitigate the impact of a discontinuance on the Company’s and Southwest’s financial condition and results of operations, management will continue to monitor developments and work with lenders to determine the appropriate replacement/alternative reference rate for variable rate debt. At this time the Company and Southwest can provide no assurances as to the impact a LIBOR discontinuance will have on their financial condition or results of operations. Any alternative rate may be less predictable or less attractive than LIBOR. |
Other Comprehensive Income and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
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 September 30, 2020 Three Months Ended (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- 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 (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- 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 (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- 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). Approximately $1.7 million of realized losses (net of tax) related to the remaining balance of Southwest’s forward-starting interest rate swaps (“FSIRS”), included in AOCI at September 30, 2020, will be reclassified into interest expense within the next 12 months as the related interest payments on long-term debt occur. 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 After-Tax Before-Tax Tax After-Tax Before-Tax Tax 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 After-Tax Before-Tax Tax 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. 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) |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Note 7 – Segment Information Centuri accounts for the services provided to Southwest at contractual prices at contract inception. Accounts receivable for these services, which are not eliminated during consolidation, are presented in the table below: (Thousands of dollars) September 30, 2020 December 31, 2019 Centuri accounts receivable for services provided to Southwest $ 15,102 $ 15,235 The Company has two reportable segments: natural gas operations and utility infrastructure services. Southwest has a single reportable segment that is referred to herein as the natural gas operations segment of the Company. In order to reconcile to net income as disclosed in the Condensed Consolidated Statements of Income, an Other column is included associated with impacts of corporate and administrative activities related to Southwest Gas Holdings, Inc. The financial information pertaining to the natural gas operations and utility infrastructure services segments is as follows: (Thousands of dollars) Natural Gas Utility Infrastructure Other Total Three Months Ended September 30, 2020 Revenues from external customers $ 210,834 $ 548,300 $ — $ 759,134 Intersegment revenues — 32,092 — 32,092 Total $ 210,834 $ 580,392 $ — $ 791,226 Segment net income (loss) $ (15,973) $ 34,873 $ (627) $ 18,273 Three Months Ended September 30, 2019 Revenues from external customers $ 209,980 $ 480,896 $ — $ 690,876 Intersegment revenues — 34,354 — 34,354 Total $ 209,980 $ 515,250 $ — $ 725,230 Segment net income (loss) $ (20,012) $ 25,838 $ (473) $ 5,353 (Thousands of dollars) Natural Gas Utility Infrastructure Other Total Nine Months Ended September 30, 2020 Revenues from external customers $ 976,095 $ 1,306,481 $ — $ 2,282,576 Intersegment revenues — 102,217 — 102,217 Total $ 976,095 $ 1,408,698 $ — $ 2,384,793 Segment net income (loss) $ 79,568 $ 50,936 $ (1,724) $ 128,780 Nine Months Ended September 30, 2019 Revenues from external customers $ 989,368 $ 1,160,303 $ — $ 2,149,671 Intersegment revenues — 122,109 — 122,109 Total $ 989,368 $ 1,282,412 $ — $ 2,271,780 Segment net income (loss) $ 86,746 $ 36,725 $ (1,253) $ 122,218 (Thousands of dollars) Natural Gas Utility Infrastructure Other Total Twelve Months Ended September 30, 2020 Revenues from external customers $ 1,355,666 $ 1,738,430 $ — $ 3,094,096 Intersegment revenues — 138,834 — 138,834 Total $ 1,355,666 $ 1,877,264 $ — $ 3,232,930 Segment net income (loss) $ 155,993 $ 66,615 $ (2,110) $ 220,498 Twelve Months Ended September 30, 2019 Revenues from external customers $ 1,359,581 $ 1,537,508 $ — $ 2,897,089 Intersegment revenues — 161,345 — 161,345 Total $ 1,359,581 $ 1,698,853 $ — $ 3,058,434 Segment net income (loss) $ 146,287 $ 46,668 $ (1,433) $ 191,522 |
Background, Organization, and_2
Background, Organization, and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations. Southwest Gas Holdings, Inc. is a holding company, owning all of the shares of common stock of Southwest Gas Corporation (“Southwest” or the “natural gas operations” segment) and all of the shares of common stock of Centuri Group, Inc. (“Centuri,” or the “utility infrastructure services” segment). Southwest is engaged in the business of purchasing, distributing, and transporting natural gas for customers in portions of Arizona, Nevada, and California. Public utility rates, practices, facilities, and service territories of Southwest are subject to regulatory oversight. The timing and amount of rate relief can materially impact results of operations. Natural gas purchases and the timing of related recoveries can materially impact liquidity. Results for the natural gas operations segment are higher during winter periods due to the seasonality incorporated in its regulatory rate structures. |
Basis of Presentation | Basis of Presentation. The condensed consolidated financial statements of Southwest Gas Holdings, Inc. and subsidiaries (the “Company”) and Southwest included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The year-end condensed balance sheet data was derived from audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. No substantive change has occurred with regard to the Company’s business segments on the whole. The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring items and estimates necessary for a fair depiction of results for the interim periods, have been made. Globally, the novel Coronavirus (“COVID-19”) pandemic has created volatility, uncertainty, and economic disruption. Utility operations have been deemed “essential services” and utility infrastructure services have, to a large extent, been similarly characterized by government officials. Management has considered the impact of the pandemic and adjusted certain estimates, where relevant, used in the preparation of the condensed consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the 2019 Annual Report to Stockholders, which is incorporated by reference into the 2019 Form 10-K. |
Fair Value Measurements | Fair Value Measurements . Certain assets and liabilities are reported at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP states that a fair value measurement should be based on the assumptions that market participants would use in pricing the asset or liability and establishes a fair value hierarchy that ranks the inputs used to measure fair value by their reliability. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to fair values derived from unobservable inputs (Level 3 measurements). Financial assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities that a company has the ability to access at the measurement date. Level 2 – inputs other than quoted prices included within Level 1 that are observable for similar assets or liabilities, either directly or indirectly. Level 3 – unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. |
Cash and Cash Equivalents | Cash and Cash Equivalents. For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and financial instruments with original maturities of three months or less. Such investments are carried at cost, which approximates market value. Cash and cash equivalents of Southwest and the Company include money market fund investments totaling approximately $40,000 for both entities at September 30, 2020, and $23.5 million and $26.7 million, for each, respectively, at December 31, 2019, which fall within Level 2 of the fair value hierarchy, due to the asset valuation methods used by money market funds. Typical non-cash investing activities for Southwest include customer advances applied as contributions toward utility construction activity, capital expenditures that were not paid as of period-end reporting dates but rather included in accounts payable, and right-of-use assets obtained in exchange for lease liabilities, which are non-cash investing and financing activities. Amounts related to such activities were immaterial for the periods presented herein. |
Intercompany Transactions | Intercompany Transactions . Centuri recognizes revenues generated from contracts with Southwest (see Note 7 – Segment Information ). The accounts receivable balance, revenues, and associated profits are included in the condensed consolidated financial statements of the Company and Southwest and were not eliminated during consolidation in accordance with accounting treatment for rate-regulated entities. |
Accounts Receivable, net of allowances | Accounts Receivable, net of allowances. Business activity with respect to natural gas utility operations is conducted with customers located within the three-state region of Arizona, Nevada, and California. Southwest’s accounts receivable are short-term in nature with no billing due dates customarily extending beyond one month, with customers’ credit worthiness assessed upon account creation by evaluation of other utility service and related payment history. Although Southwest seeks to minimize its credit risk related to utility operations by requiring security deposits from new customers, imposing late fees, and actively pursuing collection on overdue accounts, some accounts are ultimately not collected. Customer accounts are subject to collection procedures that vary by jurisdiction (late fee assessment, noticing requirements for disconnection of service, and procedures for actual disconnection and/or reestablishment of service). After disconnection of service, accounts are customarily written off approximately two months after inactivation. Dependent upon the jurisdiction, reestablishment of service requires both payment of previously unpaid balances and additional deposit requirements. Provisions for uncollectible accounts are recorded monthly based on experience, consideration of current and expected future conditions, customer and rate composition, and write-off processes. They are included in the ratemaking process as a cost of service. The Nevada jurisdictions have a regulatory mechanism associated with the gas-cost-related portion of uncollectible accounts. Such amounts are deferred and collected through a surcharge in the ratemaking process. Due to the ongoing COVID-19 pandemic, Southwest continued the moratorium initiated in March 2020 on disconnection of natural gas service for non-payment and also ceased charging late fees until further notice. While the moratorium continues to be in place, Southwest is actively working with customers experiencing financial hardship by means of flexible payment options. Management continues to monitor expected credit losses in light of the evolving financial impact of COVID-19. The allowance as of September 30, 2020 reflects the expected impact from the pandemic on balances as of that date, including consideration of customers’ ability to pay currently and once the moratorium is lifted. |
Income Taxes | Income Taxes. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. The CARES Act provides a number of tax provisions and stimulus measures, including changes to prior and future limitations on interest deductions, the ability to accelerate refund of Alternative Minimum Tax credits, elective deferment of payment related to the employer portion of Social Security taxes, and the creation of certain refundable employee retention credits, among other things. Management does not anticipate the impacts related to the CARES Act to have a material effect on the Company’s or Southwest’s results of operations, financial position, or liquidity. |
Goodwill | Goodwill. Goodwill is assessed as of October 1 st |
Derivatives | Derivatives . In managing its natural gas supply portfolios, Southwest has historically entered into fixed- and variable-price contracts, which qualify as derivatives. Additionally, Southwest has utilized fixed-for-floating swap contracts (“Swaps”) to supplement its fixed-price contracts. The fixed-price contracts, firm commitments to purchase a fixed amount of gas in the future at a fixed price, qualify for the normal purchases and normal sales exception that is allowed for contracts that are probable of delivery in the normal course of business, and are exempt from fair value reporting. The variable-price contracts qualify as derivative instruments; however, because the contract prices are the prevailing prices at the future transaction dates, the contracts have no determinable fair value. The Swap contract prices are determined at the beginning of each month to reflect that month’s published first of month index price and are recorded at fair value (Level 2). Southwest does not utilize derivative financial instruments for speculative purposes, nor does it have trading operations. |
Earnings Per Share | Earnings Per Share. Basic earnings per share (“EPS”) in each period of this report were calculated by dividing net income attributable to Southwest Gas Holdings, Inc. by the weighted-average number of shares during those periods. Diluted EPS includes additional weighted-average common stock equivalents (performance shares and restricted stock units). Unless otherwise noted, the term “Earnings Per Share” refers to Basic EPS. |
Recent Accounting Standards Updates | Recent Accounting Standards Updates. Accounting pronouncements adopted in 2020: In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13 update “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The update requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company and Southwest adopted the update in the first quarter of 2020, and concluded the impact was not material to the consolidated financial statements of the Company or Southwest. See Accounts receivable, net of allowances above. In January 2017, the FASB issued ASU 2017-04 “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Under the update, an entity will apply a one-step quantitative test as opposed to a two-step test as previously required, and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment. The Company and Southwest adopted the update in the first quarter of 2020 and will apply the update prospectively in its periodic goodwill impairment tests. In August 2018, the FASB issued ASU 2018-15 “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The update generally aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement (that is a service contract) with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, with the exception that such costs are to be included in the same line item in the balance sheet that a prepayment of the fees associated with the arrangement would be presented. Once capitalized, the update requires the entity to expense the amount capitalized over the term of the hosting arrangement, including reasonably certain renewal periods. The Company and Southwest adopted the update in the first quarter of 2020 using the prospective transition method, which did not result in a material impact to the Company’s or Southwest’s consolidated financial statements. Recently issued accounting pronouncements that will be effective after 2020: In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The update simplifies the accounting for income taxes by removing certain exceptions to the general principles, as well as improving consistent application in Topic 740 by clarifying and amending existing guidance. The update is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted for periods for which financial statements have not yet been made available for issuance. Management is evaluating the impacts this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures. In March 2020, the FASB issued ASU 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The update provides optional guidance for a limited time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting, including when modifying a contract (during the eligibility period covered by the update to Topic 848) to replace a reference rate affected by reference rate reform. The update applies only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The guidance was eligible to be applied upon issuance on March 12, 2020, and can generally be applied through December 31, 2022. Management will monitor the impacts this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures, and will reflect such appropriately, in the event that the optional guidance is elected. See also LIBOR discussion in Note 5 – Debt . In August 2020, the FASB issued ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The update, amongst other amendments, improves the guidance related to the disclosures and earnings-per-share for convertible instruments and contracts in an entity’s own equity. The update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years; early adoption is permitted. Management is evaluating the impacts this update might have on the Company’s consolidated financial statements and disclosures. |
Background, Organization, and_3
Background, Organization, and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Property and Investments | Other Property and Investments. Other property and investments on the Condensed Consolidated Balance Sheets includes: (Thousands of dollars) September 30, 2020 December 31, 2019 Southwest Gas Corporation: Net cash surrender value of COLI policies $ 133,761 $ 132,072 Other property 1,973 1,715 Total Southwest Gas Corporation 135,734 133,787 Centuri property, equipment, and intangibles 1,073,092 983,905 Centuri accumulated provision for depreciation and amortization (406,590) (352,333) Other property 22,833 18,814 Total Southwest Gas Holdings, Inc. $ 825,069 $ 784,173 |
Schedule of Goodwill | Goodwill on Southwest’s and the Company’s Condensed Consolidated Balance Sheets includes: (Thousands of dollars) Natural Gas Utility Infrastructure Total Company December 31, 2019 $ 10,095 $ 332,928 $ 343,023 Foreign currency translation adjustment — (2,826) (2,826) September 30, 2020 $ 10,095 $ 330,102 $ 340,197 |
Schedule of Significant Items Included in Other Income (Deductions) | Other Income (Deductions). The following table provides the composition of significant items included in Other income (deductions) in the Condensed Consolidated Statements of Income: Three Months Ended September 30, Nine Months Ended Twelve Months Ended September 30, (Thousands of dollars) 2020 2019 2020 2019 2020 2019 Southwest Gas Corporation - natural gas operations segment: Change in COLI policies $ 4,500 $ 200 $ 1,000 $ 11,200 $ 7,200 $ 2,000 Interest income 1,412 1,521 3,214 4,940 4,630 6,659 Equity AFUDC 1,232 1,212 3,413 3,179 4,395 5,772 Other components of net periodic benefit cost (5,005) (3,765) (15,016) (11,295) (18,780) (16,560) Miscellaneous income and (expense) (388) (521) (3,558) (1,839) (5,060) (3,065) Southwest Gas Corporation - total other income (deductions) 1,751 (1,353) (10,947) 6,185 (7,615) (5,194) Utility infrastructure services segment: Interest income — — — — — 82 Foreign transaction gain (loss) — (6) (16) 546 (16) 66 Miscellaneous income and (expense) 48 177 (91) 23 (194) 514 Centuri - total other income (deductions) 48 171 (107) 569 (210) 662 Corporate and administrative — 24 8 73 37 84 Consolidated Southwest Gas Holdings, Inc. - total other income (deductions) $ 1,799 $ (1,158) $ (11,046) $ 6,827 $ (7,788) $ (4,448) |
Summary of Redeemable Noncontrolling Interest | The following depicts the change to the balance of the redeemable noncontrolling interest: (Thousands of dollars): Redeemable Noncontrolling Interest Balance, December 31, 2019 $ 84,542 Net income attributable to redeemable noncontrolling interest 5,169 Redemption value adjustment 17,573 Balance, September 30, 2020 $ 107,284 |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the denominator used in Basic and Diluted EPS calculations is shown in the following table: Three Months Ended Nine Months Ended Twelve Months Ended (In thousands) 2020 2019 2020 2019 2020 2019 Weighted average basic shares 56,271 54,670 55,683 53,996 55,508 53,219 Effect of dilutive securities: Management Incentive Plan shares — 12 — 11 3 15 Restricted stock units (1) 86 66 70 56 66 53 Weighted average diluted shares 56,357 54,748 55,753 54,063 55,577 53,287 (1) The number of securities includ ed 76,000 and 55,000 performance shares during the three months ending September 30, 2020 and 2019, 63,000 and 48,000 performance shares during the nine months ending September 30, 2020 and 2019, and 57,000 and 44,000 performance shares during the twelve months ending September 30, 2020 and 2019, respectively, the total of which was derived by assuming that target performance will be achi eved during the relevant performance period. |
Components of Net Periodic Be_2
Components of Net Periodic Benefit Cost (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs | The service cost component of net periodic benefit costs included in the table below is a component of an overhead loading process associated with the cost of labor. The overhead process ultimately results in allocation of that portion of overall net periodic benefit costs to the same accounts to which productive labor is charged. As a result, service costs become components of various accounts, primarily operations and maintenance expense, net utility plant, and deferred charges and other assets for both the Company and Southwest. The other components of net periodic benefit cost are reflected in Other income (deductions) on the Condensed Consolidated Statements of Income of each entity. Qualified Retirement Plan September 30, Three Months Nine Months Twelve Months 2020 2019 2020 2019 2020 2019 (Thousands of dollars) Service cost $ 8,576 $ 6,466 $ 25,725 $ 19,398 $ 32,191 $ 26,536 Interest cost 11,388 12,252 34,165 36,755 46,416 47,799 Expected return on plan assets (16,324) (15,061) (48,972) (45,183) (64,033) (59,872) Amortization of net actuarial loss 9,006 5,589 27,019 16,767 32,608 24,796 Net periodic benefit cost $ 12,646 $ 9,246 $ 37,937 $ 27,737 $ 47,182 $ 39,259 SERP September 30, Three Months Nine Months Twelve Months 2020 2019 2020 2019 2020 2019 (Thousands of dollars) Service cost $ 97 $ 66 $ 292 $ 199 $ 359 $ 261 Interest cost 401 440 1,204 1,320 1,644 1,734 Amortization of net actuarial loss 451 255 1,353 765 1,608 1,141 Net periodic benefit cost $ 949 $ 761 $ 2,849 $ 2,284 $ 3,611 $ 3,136 PBOP September 30, Three Months Nine Months Twelve Months 2020 2019 2020 2019 2020 2019 (Thousands of dollars) Service cost $ 395 $ 319 $ 1,186 $ 957 $ 1,505 $ 1,325 Interest cost 646 761 1,936 2,285 2,697 2,972 Expected return on plan assets (852) (789) (2,556) (2,367) (3,345) (3,296) Amortization of prior service costs 289 318 867 953 1,185 1,286 Net periodic benefit cost $ 478 $ 609 $ 1,433 $ 1,828 $ 2,042 $ 2,287 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue Disaggregated by Service Type and Contract Type | Gas operating revenues on the Condensed Consolidated Statements of Income of both the Company and Southwest include revenue from contracts with customers, which is shown below, disaggregated by customer type, and various categories of revenue: Three Months Ended Nine Months Ended Twelve Months Ended September 30, (Thousands of dollars) 2020 2019 2020 2019 2020 2019 Residential $ 131,008 $ 124,169 $ 690,861 $ 706,270 $ 957,379 $ 961,928 Small commercial 35,204 39,725 159,122 179,519 228,720 250,986 Large commercial 9,942 10,945 32,588 36,030 45,493 49,288 Industrial/other 5,888 3,837 19,089 15,728 25,435 21,826 Transportation 21,040 21,580 65,281 68,297 89,364 90,696 Revenue from contracts with customers 203,082 200,256 966,941 1,005,844 1,346,391 1,374,724 Alternative revenue program revenues (deferrals) 9,199 7,957 9,545 (23,196) 7,629 (23,913) Other revenues (1) (1,447) 1,767 (391) 6,720 1,646 8,770 Total Gas operating revenues $ 210,834 $ 209,980 $ 976,095 $ 989,368 $ 1,355,666 $ 1,359,581 (1) Amounts include late fees and other miscellaneous revenues, and may also include the impact of certain regulatory mechanisms, such as cost-of-service components in current customer rates that are expected to be returned to customers in future periods. The following tables display Centuri’s revenue, reflected as Utility infrastructure services revenues on the Condensed Consolidated Statements of Income of the Company, representing revenue from contracts with customers disaggregated by service and contract types: Three Months Ended Nine Months Ended Twelve Months Ended September 30, (Thousands of dollars) 2020 2019 2020 2019 2020 2019 Service Types: Gas infrastructure services $ 387,578 $ 364,241 $ 935,444 $ 885,950 $ 1,288,468 $ 1,160,017 Electric power infrastructure services 115,386 70,610 282,992 184,277 346,432 202,844 Other 77,428 80,399 190,262 212,185 242,364 335,992 Total Utility infrastructure services revenues $ 580,392 $ 515,250 $ 1,408,698 $ 1,282,412 $ 1,877,264 $ 1,698,853 Three Months Ended Nine Months Ended Twelve Months Ended September 30, (Thousands of dollars) 2020 2019 2020 2019 2020 2019 Contract Types: Master services agreement $ 437,914 $ 410,283 $ 1,076,961 $ 1,021,798 $ 1,438,540 $ 1,291,397 Bid contract 142,478 104,967 331,737 260,614 438,724 407,456 Total Utility infrastructure services revenues $ 580,392 $ 515,250 $ 1,408,698 $ 1,282,412 $ 1,877,264 $ 1,698,853 Unit price contracts $ 377,284 $ 415,404 $ 985,673 $ 1,006,577 $ 1,359,352 $ 1,316,404 Fixed price contracts 46,379 37,539 109,935 80,503 142,356 152,890 Time and materials contracts 156,729 62,307 313,090 195,332 375,556 229,559 Total Utility infrastructure services revenues $ 580,392 $ 515,250 $ 1,408,698 $ 1,282,412 $ 1,877,264 $ 1,698,853 |
Summary of Information about Receivables, Revenue Earned on Contracts in Progress in Excess of Billings, Which are Included Within Accounts Receivable, Net of Allowances, and Amounts Billed in Excess of Revenue Earned on Contracts | The following table provides information about contracts receivable and revenue earned on contracts in progress in excess of billings (contract asset), which are both included within Accounts receivable, net of allowances, as well as amounts billed in excess of revenue earned on contracts (contract liability), which are included in Other current liabilities as of September 30, 2020 and December 31, 2019 on the Company’s Condensed Consolidated Balance Sheets: (Thousands of dollars) September 30, 2020 December 31, 2019 Contracts receivable, net $ 275,598 $ 223,904 Revenue earned on contracts in progress in excess of billings 156,754 99,399 Amounts billed in excess of revenue earned on contracts 5,522 4,525 |
Schedule of Construction Services Contracts Receivable | Utility infrastructure services contracts receivable consists of the following: (Thousands of dollars) September 30, 2020 December 31, 2019 Billed on completed contracts and contracts in progress $ 271,872 $ 216,268 Other receivables 5,214 8,456 Contracts receivable, gross 277,086 224,724 Allowance for doubtful accounts (1,488) (820) Contracts receivable, net $ 275,598 $ 223,904 |
Common Stock (Tables)
Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Common Stock Activity | The following table provides the activity under the Equity Shelf Program for the three-month and life-to-date periods ended September 30, 2020: Three Months Ended Life-To-Date Ended September 30, 2020 Gross proceeds $ 32,788,633 $ 207,125,867 Less: agent commissions (327,886) (2,071,259) Net proceeds $ 32,460,747 $ 205,054,608 Number of shares sold 506,219 2,705,376 Weighted average price per share $ 64.77 $ 76.56 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Amounts and Estimated Fair Values of Long-Term Debt | The Centuri secured revolving credit and term loan facility and Centuri’s other debt obligations (not actively traded) are categorized as Level 3. Because Centuri’s debt is not publicly traded, fair values for its secured revolving credit and term loan facility and other debt obligations were based on a conventional discounted cash flow methodology utilizing current market pricing yield curves, across Centuri’s debt maturity spectrum, of other industrial bonds with an assumed credit rating comparable to the Company’s. September 30, 2020 December 31, 2019 Carrying Market Carrying Market (Thousands of dollars) Southwest Gas Corporation: Debentures: Notes, 4.45%, due 2020 $ — $ — $ 125,000 $ 126,673 Notes, 6.1%, due 2041 125,000 172,353 125,000 162,666 Notes, 3.875%, due 2022 250,000 260,388 250,000 258,550 Notes, 4.875%, due 2043 250,000 317,325 250,000 291,928 Notes, 3.8%, due 2046 300,000 335,970 300,000 308,307 Notes, 3.7%, due 2028 300,000 341,388 300,000 320,685 Notes, 4.15%, due 2049 300,000 361,053 300,000 330,138 Notes, 2.2%, due 2030 450,000 471,227 — — 8% Series, due 2026 75,000 99,423 75,000 96,905 Medium-term notes, 7.78% series, due 2022 25,000 26,944 25,000 27,500 Medium-term notes, 7.92% series, due 2027 25,000 33,716 25,000 32,543 Medium-term notes, 6.76% series, due 2027 7,500 9,569 7,500 9,156 Unamortized discount and debt issuance costs (18,091) (14,450) 2,089,409 1,768,050 Revolving credit facility and commercial paper 58,000 58,000 150,000 150,000 Industrial development revenue bonds: Variable-rate bonds: Tax-exempt Series A, due 2028 50,000 50,000 50,000 50,000 2003 Series A, due 2038 50,000 50,000 50,000 50,000 2008 Series A, due 2038 50,000 50,000 50,000 50,000 2009 Series A, due 2039 50,000 50,000 50,000 50,000 Unamortized discount and debt issuance costs (1,533) (1,717) 198,467 198,283 Less: current maturities — (125,000) Long-term debt, less current maturities - Southwest Gas Corporation $ 2,345,876 $ 1,991,333 Centuri: Centuri term loan facility $ 231,010 $ 236,477 $ 244,812 $ 252,182 Unamortized debt issuance costs (890) (1,101) 230,120 243,711 Centuri secured revolving credit facility 59,908 59,950 60,021 60,057 Centuri other debt obligations 94,721 97,120 43,929 44,787 Less: current maturities (44,903) (38,512) Long-term debt, less current maturities - Centuri $ 339,846 $ 309,149 Consolidated Southwest Gas Holdings, Inc.: Southwest Gas Corporation long-term debt $ 2,345,876 $ 2,116,333 Centuri long-term debt 384,749 347,661 Less: current maturities (44,903) (163,512) Long-term debt, less current maturities - Southwest Gas Holdings, Inc. $ 2,685,722 $ 2,300,482 |
Other Comprehensive Income an_2
Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) | Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) Three Months Ended September 30, 2020 Three Months Ended (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- 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 (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- 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 (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- 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 After-Tax Before-Tax Tax After-Tax Before-Tax Tax 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 After-Tax Before-Tax Tax 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) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Accounts Receivable for Services | Accounts receivable for these services, which are not eliminated during consolidation, are presented in the table below: (Thousands of dollars) September 30, 2020 December 31, 2019 Centuri accounts receivable for services provided to Southwest $ 15,102 $ 15,235 |
Schedule of Segment Reporting Information | The financial information pertaining to the natural gas operations and utility infrastructure services segments is as follows: (Thousands of dollars) Natural Gas Utility Infrastructure Other Total Three Months Ended September 30, 2020 Revenues from external customers $ 210,834 $ 548,300 $ — $ 759,134 Intersegment revenues — 32,092 — 32,092 Total $ 210,834 $ 580,392 $ — $ 791,226 Segment net income (loss) $ (15,973) $ 34,873 $ (627) $ 18,273 Three Months Ended September 30, 2019 Revenues from external customers $ 209,980 $ 480,896 $ — $ 690,876 Intersegment revenues — 34,354 — 34,354 Total $ 209,980 $ 515,250 $ — $ 725,230 Segment net income (loss) $ (20,012) $ 25,838 $ (473) $ 5,353 (Thousands of dollars) Natural Gas Utility Infrastructure Other Total Nine Months Ended September 30, 2020 Revenues from external customers $ 976,095 $ 1,306,481 $ — $ 2,282,576 Intersegment revenues — 102,217 — 102,217 Total $ 976,095 $ 1,408,698 $ — $ 2,384,793 Segment net income (loss) $ 79,568 $ 50,936 $ (1,724) $ 128,780 Nine Months Ended September 30, 2019 Revenues from external customers $ 989,368 $ 1,160,303 $ — $ 2,149,671 Intersegment revenues — 122,109 — 122,109 Total $ 989,368 $ 1,282,412 $ — $ 2,271,780 Segment net income (loss) $ 86,746 $ 36,725 $ (1,253) $ 122,218 (Thousands of dollars) Natural Gas Utility Infrastructure Other Total Twelve Months Ended September 30, 2020 Revenues from external customers $ 1,355,666 $ 1,738,430 $ — $ 3,094,096 Intersegment revenues — 138,834 — 138,834 Total $ 1,355,666 $ 1,877,264 $ — $ 3,232,930 Segment net income (loss) $ 155,993 $ 66,615 $ (2,110) $ 220,498 Twelve Months Ended September 30, 2019 Revenues from external customers $ 1,359,581 $ 1,537,508 $ — $ 2,897,089 Intersegment revenues — 161,345 — 161,345 Total $ 1,359,581 $ 1,698,853 $ — $ 3,058,434 Segment net income (loss) $ 146,287 $ 46,668 $ (1,433) $ 191,522 |
Background, Organization, and_4
Background, Organization, and Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)instrumentstate | Sep. 30, 2020USD ($)instrumentstate | Dec. 31, 2019USD ($) | Nov. 30, 2018 | |
Significant Accounting Policies [Line Items] | ||||
Number of states in which entity operates | state | 3 | 3 | ||
Threshold period after inactivation for write-off of accounts receivable | 2 months | |||
Goodwill impairment | $ 0 | |||
Redemption value adjustments | $ 17,600,000 | $ 17,573,000 | ||
Interest Rate Swap | ||||
Significant Accounting Policies [Line Items] | ||||
Derivative, Number of Instruments Held | instrument | 2 | 2 | ||
Linetec | ||||
Significant Accounting Policies [Line Items] | ||||
Ownership percentage by noncontrolling owners | 20.00% | |||
Gas Pipe Materials and Supplies | Prepaid and other current assets | ||||
Significant Accounting Policies [Line Items] | ||||
Gas pipe materials and operating supplies | $ 55,000,000 | $ 55,000,000 | $ 57,000,000 | |
Prepaid and other current assets | 33,000,000 | |||
Pooled Funds and Mutual Funds | ||||
Significant Accounting Policies [Line Items] | ||||
Money market fund investments | 40,000 | 40,000 | 26,700,000 | |
Southwest Gas Corporation | ||||
Significant Accounting Policies [Line Items] | ||||
Dividends declared but not yet paid | 27,000,000 | 27,000,000 | 25,200,000 | |
Southwest Gas Corporation | Pooled Funds and Mutual Funds | ||||
Significant Accounting Policies [Line Items] | ||||
Money market fund investments | $ 40,000 | $ 40,000 | $ 23,500,000 |
Background, Organization, and_5
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Other Property and Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Other property | $ 22,833 | $ 18,814 |
Total | 825,069 | 784,173 |
Southwest Gas Corporation | ||
Property, Plant and Equipment [Line Items] | ||
Net cash surrender value of COLI policies | 133,761 | 132,072 |
Other property | 1,973 | 1,715 |
Total | 135,734 | 133,787 |
Centuri | ||
Property, Plant and Equipment [Line Items] | ||
Centuri property, equipment, and intangibles | 1,073,092 | 983,905 |
Centuri accumulated provision for depreciation and amortization | $ (406,590) | $ (352,333) |
Background, Organization, and_6
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 343,023 |
Foreign currency translation adjustment | (2,826) |
Goodwill, ending balance | 340,197 |
Natural Gas Operations | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 10,095 |
Foreign currency translation adjustment | 0 |
Goodwill, ending balance | 10,095 |
Utility Infrastructure Services | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 332,928 |
Foreign currency translation adjustment | (2,826) |
Goodwill, ending balance | $ 330,102 |
Background, Organization, and_7
Background, Organization, and Summary of Significant Accounting Policies - Other Income (Deductions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other income (deductions) | ||||||
Total other income (deductions) | $ 1,799 | $ (1,158) | $ (11,046) | $ 6,827 | $ (7,788) | $ (4,448) |
Southwest Gas Corporation | ||||||
Other income (deductions) | ||||||
Total other income (deductions) | 1,751 | (1,353) | (10,947) | 6,185 | (7,615) | (5,194) |
Operating Segments | Natural Gas Operations | Southwest Gas Corporation | ||||||
Other income (deductions) | ||||||
Change in COLI policies | 4,500 | 200 | 1,000 | 11,200 | 7,200 | 2,000 |
Interest income | 1,412 | 1,521 | 3,214 | 4,940 | 4,630 | 6,659 |
Equity AFUDC | 1,232 | 1,212 | 3,413 | 3,179 | 4,395 | 5,772 |
Other components of net periodic benefit cost | (5,005) | (3,765) | (15,016) | (11,295) | (18,780) | (16,560) |
Miscellaneous income and (expense) | (388) | (521) | (3,558) | (1,839) | (5,060) | (3,065) |
Total other income (deductions) | 1,751 | (1,353) | (10,947) | 6,185 | (7,615) | (5,194) |
Operating Segments | Utility Infrastructure Services | Centuri | ||||||
Other income (deductions) | ||||||
Interest income | 0 | 0 | 0 | 0 | 0 | 82 |
Foreign transaction gain (loss) | 0 | (6) | (16) | 546 | (16) | 66 |
Miscellaneous income and (expense) | 48 | 177 | (91) | 23 | (194) | 514 |
Total other income (deductions) | 48 | 171 | (107) | 569 | (210) | 662 |
Corporate and administrative | ||||||
Other income (deductions) | ||||||
Total other income (deductions) | $ 0 | $ 24 | $ 8 | $ 73 | $ 37 | $ 84 |
Background, Organization, and_8
Background, Organization, and Summary of Significant Accounting Policies - Summary of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Movement In Redeemable Noncontrolling Interest [Roll Forward] | ||
Redeemable noncontrolling interest, beginning balance | $ 84,542 | |
Net income attributable to redeemable noncontrolling interest | 5,169 | |
Redemption value adjustment | $ 17,600 | 17,573 |
Redeemable noncontrolling interest, ending balance | $ 107,284 | $ 107,284 |
Background, Organization, and_9
Background, Organization, and Summary of Significant Accounting Policies Background, Organization, and Summary of Significant Accounting Policies - Schedule of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Weighted average basic shares (in shares) | 56,271 | 54,670 | 55,683 | 53,996 | 55,508 | 53,219 |
Effect of dilutive securities: | ||||||
Management Incentive Plan shares (in shares) | 0 | 12 | 0 | 11 | 3 | 15 |
Restricted stock units (in shares) | 86 | 66 | 70 | 56 | 66 | 53 |
Weighted average diluted shares (in shares) | 56,357 | 54,748 | 55,753 | 54,063 | 55,577 | 53,287 |
Number of performance share units granted (in shares) | 76 | 55 | 63 | 48 | 57 | 44 |
Components of Net Periodic Be_3
Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Qualified Retirement Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | $ 8,576 | $ 6,466 | $ 25,725 | $ 19,398 | $ 32,191 | $ 26,536 |
Interest cost | 11,388 | 12,252 | 34,165 | 36,755 | 46,416 | 47,799 |
Expected return on plan assets | (16,324) | (15,061) | (48,972) | (45,183) | (64,033) | (59,872) |
Amortization of net actuarial loss | 9,006 | 5,589 | 27,019 | 16,767 | 32,608 | 24,796 |
Net periodic benefit cost | 12,646 | 9,246 | 37,937 | 27,737 | 47,182 | 39,259 |
SERP | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 97 | 66 | 292 | 199 | 359 | 261 |
Interest cost | 401 | 440 | 1,204 | 1,320 | 1,644 | 1,734 |
Amortization of net actuarial loss | 451 | 255 | 1,353 | 765 | 1,608 | 1,141 |
Net periodic benefit cost | 949 | 761 | 2,849 | 2,284 | 3,611 | 3,136 |
PBOP | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 395 | 319 | 1,186 | 957 | 1,505 | 1,325 |
Interest cost | 646 | 761 | 1,936 | 2,285 | 2,697 | 2,972 |
Expected return on plan assets | (852) | (789) | (2,556) | (2,367) | (3,345) | (3,296) |
Amortization of prior service costs | 289 | 318 | 867 | 953 | 1,185 | 1,286 |
Net periodic benefit cost | $ 478 | $ 609 | $ 1,433 | $ 1,828 | $ 2,042 | $ 2,287 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)Contract | |
Segment Reporting Information [Line Items] | |
Change in contract liability, revenue recognized | $ | $ 4.5 |
Centuri | |
Segment Reporting Information [Line Items] | |
Number of contracts with original duration more than one year | Contract | 23 |
Revenue - Revenue Performance O
Revenue - Revenue Performance Obligation (Details) - Centuri - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 $ in Millions | Sep. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Transaction price allocated to unsatisfied performance obligations of contracts | $ 55.3 |
Transaction price allocated to unsatisfied performance obligations of contracts, period | 1 year |
Revenue - Schedule of Gas Opera
Revenue - Schedule of Gas Operating Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | $ 203,082 | $ 200,256 | $ 966,941 | $ 1,005,844 | $ 1,346,391 | $ 1,374,724 |
Alternative revenue program revenues (deferrals) | 9,199 | 7,957 | 9,545 | (23,196) | 7,629 | (23,913) |
Other revenues (1) | (1,447) | 1,767 | (391) | 6,720 | 1,646 | 8,770 |
Total Gas operating revenues | 210,834 | 209,980 | 976,095 | 989,368 | 1,355,666 | 1,359,581 |
Residential | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 131,008 | 124,169 | 690,861 | 706,270 | 957,379 | 961,928 |
Small commercial | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 35,204 | 39,725 | 159,122 | 179,519 | 228,720 | 250,986 |
Large commercial | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 9,942 | 10,945 | 32,588 | 36,030 | 45,493 | 49,288 |
Industrial/other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 5,888 | 3,837 | 19,089 | 15,728 | 25,435 | 21,826 |
Transportation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | $ 21,040 | $ 21,580 | $ 65,281 | $ 68,297 | $ 89,364 | $ 90,696 |
Revenue - Summary of Revenue Di
Revenue - Summary of Revenue Disaggregated by Service Type, and Contract Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | $ 203,082 | $ 200,256 | $ 966,941 | $ 1,005,844 | $ 1,346,391 | $ 1,374,724 |
Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 580,392 | 515,250 | 1,408,698 | 1,282,412 | 1,877,264 | 1,698,853 |
Master services agreement | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 437,914 | 410,283 | 1,076,961 | 1,021,798 | 1,438,540 | 1,291,397 |
Bid contract | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 142,478 | 104,967 | 331,737 | 260,614 | 438,724 | 407,456 |
Unit price contracts | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 377,284 | 415,404 | 985,673 | 1,006,577 | 1,359,352 | 1,316,404 |
Fixed price contracts | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 46,379 | 37,539 | 109,935 | 80,503 | 142,356 | 152,890 |
Time and materials contracts | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 156,729 | 62,307 | 313,090 | 195,332 | 375,556 | 229,559 |
Gas infrastructure services | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 387,578 | 364,241 | 935,444 | 885,950 | 1,288,468 | 1,160,017 |
Electric power infrastructure services | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 115,386 | 70,610 | 282,992 | 184,277 | 346,432 | 202,844 |
Other | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | $ 77,428 | $ 80,399 | $ 190,262 | $ 212,185 | $ 242,364 | $ 335,992 |
Revenue - Summary of Informatio
Revenue - Summary of Information about Receivables (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contracts receivable, net | $ 275,598 | $ 223,904 |
Revenue earned on contracts in progress in excess of billings | 156,754 | 99,399 |
Amounts billed in excess of revenue earned on contracts | $ 5,522 | $ 4,525 |
Revenue - Schedule of Construct
Revenue - Schedule of Construction Services Contracts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Billed on completed contracts and contracts in progress | $ 271,872 | $ 216,268 |
Other receivables | 5,214 | 8,456 |
Contracts receivable, gross | 277,086 | 224,724 |
Allowance for doubtful accounts | (1,488) | (820) |
Contracts receivable, net | $ 275,598 | $ 223,904 |
Common Stock (Details)
Common Stock (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 17 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | May 08, 2019 | |
Class of Stock [Line Items] | |||||||
Net proceeds | $ 90,635,000 | $ 129,341,000 | $ 119,240,000 | $ 391,509,000 | |||
Restricted Stock/Unit Plan, and Management Incentive Plan | |||||||
Class of Stock [Line Items] | |||||||
Common stock issued (in shares) | 96,000 | ||||||
Dividend Reinvestment and Stock Purchase Plan | |||||||
Class of Stock [Line Items] | |||||||
Common stock issued (in shares) | 130,000 | ||||||
Common stock issued, amount | $ 9,000,000 | ||||||
Equity Shelf Program | |||||||
Class of Stock [Line Items] | |||||||
Sale of stock, maximum amount of stock allowed to be offered | $ 300,000,000 | ||||||
Gross proceeds | $ 32,788,633 | $ 207,125,867 | |||||
Less: agent commissions | (327,886) | (2,071,259) | |||||
Net proceeds | $ 32,460,747 | $ 205,054,608 | |||||
Number of shares sold (in shares) | 506,219 | 2,705,376 | |||||
Weighted average price per share | $ 64.77 | $ 76.56 | |||||
Sale of common stock available for sale (in shares) | $ 92,874,133 | $ 92,874,133 | $ 92,874,133 | $ 92,874,133 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Less: current maturities | $ (44,903) | $ (163,512) | |
Long-term debt, less current maturities | 2,685,722 | 2,300,482 | |
Long-term Debt, Current and Noncurrent Abstract | |||
Less: current maturities | (44,903) | (163,512) | |
Long-term debt, less current maturities | 2,685,722 | 2,300,482 | |
Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Less: current maturities | 0 | (125,000) | |
Long-term debt, less current maturities | 2,345,876 | 1,991,333 | |
Long-term Debt, Current and Noncurrent Abstract | |||
Less: current maturities | 0 | (125,000) | |
Long-term debt, less current maturities | 2,345,876 | 1,991,333 | |
Southwest Gas Corporation | LIBOR | |||
Debt Instrument [Line Items] | |||
Line of credit facility | 8,000 | ||
Centuri | LIBOR | |||
Debt Instrument [Line Items] | |||
Line of credit facility | $ 172,000 | ||
Debentures | Notes, 4.45%, due 2020 | Southwest Gas Corporation | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 4.45% | 4.45% | |
Debentures | Notes, 6.1%, due 2041 | Southwest Gas Corporation | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 6.10% | ||
Debentures | Notes, 3.875%, due 2022 | Southwest Gas Corporation | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 3.875% | ||
Debentures | Notes, 4.875%, due 2043 | Southwest Gas Corporation | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 4.875% | ||
Debentures | Notes, 3.8%, due 2046 | Southwest Gas Corporation | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 3.80% | ||
Debentures | Notes, 3.7%, due 2028 | Southwest Gas Corporation | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 3.70% | ||
Debentures | Notes, 4.15%, due 2049 | Southwest Gas Corporation | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 4.15% | ||
Debentures | Notes, 2.2%, due 2030 | Southwest Gas Corporation | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 2.20% | 2.20% | |
Debentures | 8% Series, due 2026 | Southwest Gas Corporation | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 8.00% | ||
Debentures | Medium-term notes, 7.78% series, due 2022 | Southwest Gas Corporation | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 7.78% | ||
Debentures | Medium-term notes, 7.92% series, due 2027 | Southwest Gas Corporation | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 7.92% | ||
Debentures | Medium-term notes, 6.76% series, due 2027 | Southwest Gas Corporation | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 6.76% | ||
Carrying Amount | |||
Debt Instrument [Line Items] | |||
Less: current maturities | $ (44,903) | (163,512) | |
Long-term debt, less current maturities | 2,685,722 | 2,300,482 | |
Long-term Debt, Current and Noncurrent Abstract | |||
Less: current maturities | (44,903) | (163,512) | |
Long-term debt, less current maturities | 2,685,722 | 2,300,482 | |
Carrying Amount | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Less: current maturities | 0 | (125,000) | |
Long-term debt, less current maturities | 2,345,876 | 1,991,333 | |
Long-term Debt, Current and Noncurrent Abstract | |||
Long-term debt | 2,345,876 | 2,116,333 | |
Less: current maturities | 0 | (125,000) | |
Long-term debt, less current maturities | 2,345,876 | 1,991,333 | |
Carrying Amount | Centuri | |||
Debt Instrument [Line Items] | |||
Less: current maturities | (44,903) | (38,512) | |
Long-term debt, less current maturities | 339,846 | 309,149 | |
Unamortized debt issuance costs | (890) | (1,101) | |
Long-term Debt, Current and Noncurrent Abstract | |||
Long-term debt | 384,749 | 347,661 | |
Less: current maturities | (44,903) | (38,512) | |
Long-term debt, less current maturities | 339,846 | 309,149 | |
Centuri secured revolving credit facility | 230,120 | 243,711 | |
Carrying Amount | Centuri secured revolving credit facility | Centuri | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Centuri secured revolving credit facility | 59,908 | 60,021 | |
Carrying Amount | Centuri term loan facility | Centuri | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Centuri secured revolving credit facility | 231,010 | 244,812 | |
Carrying Amount | Centuri other debt obligations | Centuri | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Centuri other debt obligations | 94,721 | 43,929 | |
Carrying Amount | Debentures | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 2,089,409 | 1,768,050 | |
Unamortized discount and debt issuance costs | (18,091) | (14,450) | |
Carrying Amount | Debentures | Notes, 4.45%, due 2020 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 0 | $ 125,000 | 125,000 |
Carrying Amount | Debentures | Notes, 6.1%, due 2041 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 125,000 | 125,000 | |
Carrying Amount | Debentures | Notes, 3.875%, due 2022 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 250,000 | 250,000 | |
Carrying Amount | Debentures | Notes, 4.875%, due 2043 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 250,000 | 250,000 | |
Carrying Amount | Debentures | Notes, 3.8%, due 2046 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 300,000 | 300,000 | |
Carrying Amount | Debentures | Notes, 3.7%, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 300,000 | 300,000 | |
Carrying Amount | Debentures | Notes, 4.15%, due 2049 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 300,000 | 300,000 | |
Carrying Amount | Debentures | Notes, 2.2%, due 2030 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 450,000 | 0 | |
Carrying Amount | Debentures | 8% Series, due 2026 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 75,000 | 75,000 | |
Carrying Amount | Debentures | Medium-term notes, 7.78% series, due 2022 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 25,000 | 25,000 | |
Carrying Amount | Debentures | Medium-term notes, 7.92% series, due 2027 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 25,000 | 25,000 | |
Carrying Amount | Debentures | Medium-term notes, 6.76% series, due 2027 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 7,500 | 7,500 | |
Carrying Amount | Debentures | Revolving credit facility and commercial paper | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Line of credit facility | 58,000 | 150,000 | |
Carrying Amount | Industrial development revenue bonds | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unamortized discount and debt issuance costs | (1,533) | (1,717) | |
Unsecured debt | 198,467 | 198,283 | |
Carrying Amount | Industrial development revenue bonds | Tax-exempt Series A, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 50,000 | 50,000 | |
Carrying Amount | Industrial development revenue bonds | 2003 Series A, due 2038 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 50,000 | 50,000 | |
Carrying Amount | Industrial development revenue bonds | 2008 Series A, due 2038 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 50,000 | 50,000 | |
Carrying Amount | Industrial development revenue bonds | 2009 Series A, due 2039 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 50,000 | 50,000 | |
Market Value | Centuri secured revolving credit facility | Centuri | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Centuri secured revolving credit facility | 59,950 | 60,057 | |
Market Value | Centuri term loan facility | Centuri | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Centuri secured revolving credit facility | 236,477 | 252,182 | |
Market Value | Centuri other debt obligations | Centuri | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Centuri other debt obligations | 97,120 | 44,787 | |
Market Value | Debentures | Notes, 4.45%, due 2020 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 0 | 126,673 | |
Market Value | Debentures | Notes, 6.1%, due 2041 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 172,353 | 162,666 | |
Market Value | Debentures | Notes, 3.875%, due 2022 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 260,388 | 258,550 | |
Market Value | Debentures | Notes, 4.875%, due 2043 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 317,325 | 291,928 | |
Market Value | Debentures | Notes, 3.8%, due 2046 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 335,970 | 308,307 | |
Market Value | Debentures | Notes, 3.7%, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 341,388 | 320,685 | |
Market Value | Debentures | Notes, 4.15%, due 2049 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 361,053 | 330,138 | |
Market Value | Debentures | Notes, 2.2%, due 2030 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 471,227 | 0 | |
Market Value | Debentures | 8% Series, due 2026 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 99,423 | 96,905 | |
Market Value | Debentures | Medium-term notes, 7.78% series, due 2022 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 26,944 | 27,500 | |
Market Value | Debentures | Medium-term notes, 7.92% series, due 2027 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 33,716 | 32,543 | |
Market Value | Debentures | Medium-term notes, 6.76% series, due 2027 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 9,569 | 9,156 | |
Market Value | Debentures | Revolving credit facility and commercial paper | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fair value | 58,000 | 150,000 | |
Market Value | Industrial development revenue bonds | Tax-exempt Series A, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 50,000 | 50,000 | |
Market Value | Industrial development revenue bonds | 2003 Series A, due 2038 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 50,000 | 50,000 | |
Market Value | Industrial development revenue bonds | 2008 Series A, due 2038 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt, fair value | 50,000 | 50,000 | |
Market Value | Industrial development revenue bonds | 2009 Series A, due 2039 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt, fair value | $ 50,000 | $ 50,000 |
Debt - Additional Information (
Debt - Additional Information (Details) | Apr. 10, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 30, 2018USD ($) | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||||||
Short term borrowings outstanding | $ 54,000,000 | $ 54,000,000 | $ 211,000,000 | ||||
Percentage of total debt with interest rates reference to LIBOR and due after 2021 | 8.00% | 8.00% | |||||
Southwest Gas Corporation | |||||||
Debt Instrument [Line Items] | |||||||
Short term borrowings outstanding | $ 0 | $ 0 | 194,000,000 | ||||
Percentage of total debt with interest rates reference to LIBOR and due after 2021 | 0.30% | 0.30% | |||||
Southwest Gas Corporation | Carrying Amount | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 2,345,876,000 | $ 2,345,876,000 | 2,116,333,000 | ||||
Southwest Gas Corporation | Debentures | Carrying Amount | |||||||
Debt Instrument [Line Items] | |||||||
Notes payable | 2,089,409,000 | 2,089,409,000 | 1,768,050,000 | ||||
Southwest Gas Corporation | Commercial Paper Program | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | 50,000,000 | 50,000,000 | |||||
Borrowings outstanding under facility | $ 50,000,000 | $ 50,000,000 | |||||
Southwest Gas Corporation | Notes, 2.2%, due 2030 | Debentures | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 450,000,000 | ||||||
Debt instrument interest rate | 2.20% | 2.20% | 2.20% | ||||
Debt instrument discount rate | 0.126% | ||||||
Southwest Gas Corporation | Notes, 2.2%, due 2030 | Debentures | Carrying Amount | |||||||
Debt Instrument [Line Items] | |||||||
Notes payable | $ 450,000,000 | $ 450,000,000 | 0 | ||||
Southwest Gas Corporation | Notes, 4.45%, due 2020 | Debentures | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate | 4.45% | 4.45% | 4.45% | ||||
Debt redemption price, percentage | 100.00% | ||||||
Southwest Gas Corporation | Notes, 4.45%, due 2020 | Debentures | Carrying Amount | |||||||
Debt Instrument [Line Items] | |||||||
Notes payable | $ 0 | $ 0 | $ 125,000,000 | 125,000,000 | |||
Centuri | Carrying Amount | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 384,749,000 | 384,749,000 | $ 347,661,000 | ||||
Centuri | Secured Revolving Credit Facility and Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 590,000,000 | ||||||
Borrowings outstanding under facility | 291,000,000 | 291,000,000 | |||||
Debt secured by assets | 1,400,000,000 | 1,400,000,000 | |||||
Centuri | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | 325,000,000 | ||||||
Centuri | Centuri term loan facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 265,000,000 | ||||||
Centuri | Equipment Loans | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from debt | 70,000,000 | ||||||
LIBOR | Southwest Gas Holdings | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings outstanding under facility | 54,000,000 | 54,000,000 | |||||
LIBOR | Southwest Gas Corporation | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings outstanding under facility | 8,000,000 | 8,000,000 | |||||
LIBOR | Centuri | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings outstanding under facility | 172,000,000 | 172,000,000 | |||||
$400 Million Credit Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.075% | ||||||
$400 Million Credit Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.20% | ||||||
$400 Million Credit Facility | Southwest Gas Corporation | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 400,000,000 | 400,000,000 | 400,000,000 | ||||
Line of credit designated as long term debt | 150,000,000 | 150,000,000 | |||||
Line of credit designated for working capital purposes | 250,000,000 | 250,000,000 | |||||
Long-term debt | 58,000,000 | 58,000,000 | |||||
Debt covenant, ratio of funded debt to total capitalization | 0.70 | ||||||
Short term borrowings outstanding | $ 0 | $ 0 | |||||
$400 Million Credit Facility | LIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Applicable margin | 0.75% | ||||||
$400 Million Credit Facility | LIBOR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Applicable margin | 1.50% | ||||||
$400 Million Credit Facility | LIBOR | Southwest Gas Corporation | |||||||
Debt Instrument [Line Items] | |||||||
Applicable margin | 1.00% | ||||||
$400 Million Credit Facility | Alternative base rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Applicable margin | 0.00% | ||||||
$400 Million Credit Facility | Alternative base rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Applicable margin | 0.50% | ||||||
$400 Million Credit Facility | Alternative base rate | Southwest Gas Corporation | |||||||
Debt Instrument [Line Items] | |||||||
Applicable margin | 0.00% | ||||||
$100 Million Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 |
Other Comprehensive Income an_3
Other Comprehensive Income and Accumulated Other Comprehensive Income - Related Tax Effects Allocated to OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications, net of tax | $ (1,187) | |||||
Other comprehensive income (loss), before tax | $ 3,406 | $ 1,203 | 5,571 | $ 6,081 | $ (6,502) | $ 7,667 |
Other comprehensive income (loss), tax | (572) | (397) | (1,622) | (1,188) | 1,494 | (2,052) |
Total other comprehensive income (loss), net of tax | 2,834 | 806 | $ 3,949 | 4,893 | $ (5,008) | 5,615 |
Effective income tax rate | 24.00% | 24.00% | ||||
Southwest Gas Corporation | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), before tax | 2,382 | 1,650 | $ 6,758 | 4,950 | $ (6,222) | 8,544 |
Other comprehensive income (loss), tax | (572) | (397) | (1,622) | (1,188) | 1,494 | (2,052) |
Total other comprehensive income (loss), net of tax | 1,810 | 1,253 | 5,136 | 3,762 | (4,728) | 6,492 |
Defined Benefit Plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), before tax | 1,352 | 814 | 4,055 | 2,442 | (9,761) | 5,200 |
Other comprehensive income (loss), tax | (325) | (196) | (973) | (586) | 2,344 | (1,248) |
Total other comprehensive income (loss), net of tax | 1,027 | 618 | 3,082 | 1,856 | (7,417) | 3,952 |
Defined Benefit Plans | Southwest Gas Corporation | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), before tax | 4,055 | |||||
Other comprehensive income (loss), tax | (973) | |||||
Total other comprehensive income (loss), net of tax | 3,082 | |||||
Net actuarial gain/(loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications, before tax | (71,087) | (20,426) | ||||
Other comprehensive income (loss) before reclassifications, tax | 17,061 | 4,902 | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (54,026) | (15,524) | ||||
Reclassification from AOCI, before Tax | 9,457 | 5,844 | 28,372 | 17,532 | 34,216 | 25,937 |
Reclassification from AOCI, tax | (2,270) | (1,402) | (6,809) | (4,207) | (8,212) | (6,224) |
Reclassification from AOCI, net of tax | 7,187 | 4,442 | 21,563 | 13,325 | 26,004 | 19,713 |
Other comprehensive income (loss), before tax | 28,372 | |||||
Other comprehensive income (loss), tax | (6,809) | |||||
Total other comprehensive income (loss), net of tax | 21,563 | |||||
Net actuarial gain/(loss) | Southwest Gas Corporation | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), before tax | 28,372 | |||||
Other comprehensive income (loss), tax | (6,809) | |||||
Total other comprehensive income (loss), net of tax | 21,563 | |||||
Amortization of prior service cost | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Reclassification from AOCI, before Tax | 289 | 318 | 867 | 953 | 1,185 | 1,286 |
Reclassification from AOCI, tax | (69) | (77) | (208) | (229) | (284) | (309) |
Reclassification from AOCI, net of tax | 220 | 241 | 659 | 724 | 901 | 977 |
Other comprehensive income (loss), before tax | 867 | |||||
Other comprehensive income (loss), tax | (208) | |||||
Total other comprehensive income (loss), net of tax | 659 | |||||
Amortization of prior service cost | Southwest Gas Corporation | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), before tax | 867 | |||||
Other comprehensive income (loss), tax | (208) | |||||
Total other comprehensive income (loss), net of tax | 659 | |||||
Prior service cost | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications, before tax | (1,878) | 0 | ||||
Other comprehensive income (loss) before reclassifications, tax | 452 | 0 | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (1,426) | 0 | ||||
Regulatory adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Reclassification from AOCI, before Tax | (8,394) | (5,348) | (25,184) | (16,043) | 27,803 | (1,597) |
Reclassification from AOCI, tax | 2,014 | 1,283 | 6,044 | 3,850 | (6,673) | 383 |
Reclassification from AOCI, net of tax | (6,380) | (4,065) | (19,140) | (12,193) | 21,130 | (1,214) |
Other comprehensive income (loss), before tax | (25,184) | |||||
Other comprehensive income (loss), tax | 6,044 | |||||
Total other comprehensive income (loss), net of tax | (19,140) | |||||
Regulatory adjustment | Southwest Gas Corporation | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), before tax | (25,184) | |||||
Other comprehensive income (loss), tax | 6,044 | |||||
Total other comprehensive income (loss), net of tax | (19,140) | |||||
FSIRS | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Reclassification from AOCI, before Tax | 1,030 | 836 | 2,703 | 2,508 | 3,539 | 3,344 |
Reclassification from AOCI, tax | (247) | (201) | (649) | (602) | (850) | (804) |
Reclassification from AOCI, net of tax | 783 | 635 | 2,054 | 1,906 | 2,689 | 2,540 |
Other comprehensive income (loss), before tax | 1,030 | 836 | 2,703 | 2,508 | 3,539 | 3,344 |
Other comprehensive income (loss), tax | (247) | (201) | (649) | (602) | (850) | (804) |
Total other comprehensive income (loss), net of tax | 783 | 635 | 2,054 | 1,906 | 2,689 | 2,540 |
FSIRS | Southwest Gas Corporation | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Reclassification from AOCI, before Tax | 2,703 | |||||
Reclassification from AOCI, tax | (649) | |||||
Reclassification from AOCI, net of tax | 2,054 | |||||
Other comprehensive income (loss), before tax | 2,703 | |||||
Other comprehensive income (loss), tax | (649) | |||||
Total other comprehensive income (loss), net of tax | 2,054 | |||||
Foreign Currency Items | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications, before tax | 1,024 | (447) | (1,187) | 1,131 | (280) | (877) |
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | $ 1,024 | $ (447) | (1,187) | $ 1,131 | $ (280) | $ (877) |
Other comprehensive income (loss), before tax | (1,187) | |||||
Total other comprehensive income (loss), net of tax | $ (1,187) |
Other Comprehensive Income an_4
Other Comprehensive Income and Accumulated Other Comprehensive Income - Additional Information (Details) $ in Millions | Sep. 30, 2020USD ($) |
Equity [Abstract] | |
Amount of FSIRS existing AOCI losses expected to reclassified income in next twelve months | $ 1.7 |
Other Comprehensive Income an_5
Other Comprehensive Income and Accumulated Other Comprehensive Income - AOCI Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 2,423,710 | |||||
Beginning balance, attributable to parent | $ 2,505,914 | |||||
Other comprehensive income (loss) before reclassifications, net of tax | (1,187) | |||||
Other comprehensive income (loss), before tax | $ 3,406 | $ 1,203 | 5,571 | $ 6,081 | (6,502) | $ 7,667 |
Other comprehensive income (loss), tax | (572) | (397) | (1,622) | (1,188) | 1,494 | (2,052) |
Total other comprehensive income (loss), net of tax | 2,834 | 806 | 3,949 | 4,893 | (5,008) | 5,615 |
Ending balance, attributable to parent | 2,619,238 | 2,619,238 | 2,619,238 | |||
Ending balance | 2,619,238 | 2,423,710 | $ 2,619,238 | 2,423,710 | $ 2,619,238 | 2,423,710 |
Effective income tax rate | 24.00% | 24.00% | ||||
Defined Benefit Plans | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance, before tax | $ (66,601) | |||||
Beginning balance, tax | 15,985 | |||||
Beginning balance | (50,616) | |||||
Other comprehensive income (loss), before tax | 1,352 | 814 | 4,055 | 2,442 | $ (9,761) | 5,200 |
Other comprehensive income (loss), tax | (325) | (196) | (973) | (586) | 2,344 | (1,248) |
Total other comprehensive income (loss), net of tax | 1,027 | 618 | 3,082 | 1,856 | (7,417) | 3,952 |
Ending balance, before tax | (62,546) | (62,546) | (62,546) | |||
Ending balance, tax | 15,012 | 15,012 | 15,012 | |||
Ending balance | (47,534) | (47,534) | (47,534) | |||
Amortization of prior service cost | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification from AOCI, before Tax | 289 | 318 | 867 | 953 | 1,185 | 1,286 |
Reclassification from AOCI, tax | (69) | (77) | (208) | (229) | (284) | (309) |
Reclassification from AOCI, net of tax | 220 | 241 | 659 | 724 | 901 | 977 |
Other comprehensive income (loss), before tax | 867 | |||||
Other comprehensive income (loss), tax | (208) | |||||
Total other comprehensive income (loss), net of tax | 659 | |||||
Amortization of net actuarial loss | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Other comprehensive income (loss) before reclassifications, before tax | (71,087) | (20,426) | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (54,026) | (15,524) | ||||
Reclassification from AOCI, before Tax | 9,457 | 5,844 | 28,372 | 17,532 | 34,216 | 25,937 |
Reclassification from AOCI, tax | (2,270) | (1,402) | (6,809) | (4,207) | (8,212) | (6,224) |
Reclassification from AOCI, net of tax | 7,187 | 4,442 | 21,563 | 13,325 | 26,004 | 19,713 |
Other comprehensive income (loss), before tax | 28,372 | |||||
Other comprehensive income (loss), tax | (6,809) | |||||
Total other comprehensive income (loss), net of tax | 21,563 | |||||
Regulatory adjustment | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification from AOCI, before Tax | (8,394) | (5,348) | (25,184) | (16,043) | 27,803 | (1,597) |
Reclassification from AOCI, tax | 2,014 | 1,283 | 6,044 | 3,850 | (6,673) | 383 |
Reclassification from AOCI, net of tax | (6,380) | (4,065) | (19,140) | (12,193) | 21,130 | (1,214) |
Other comprehensive income (loss), before tax | (25,184) | |||||
Other comprehensive income (loss), tax | 6,044 | |||||
Total other comprehensive income (loss), net of tax | (19,140) | |||||
FSIRS | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance, before tax | (5,966) | |||||
Beginning balance, tax | 1,431 | |||||
Beginning balance | (4,535) | |||||
Reclassification from AOCI, before Tax | 1,030 | 836 | 2,703 | 2,508 | 3,539 | 3,344 |
Reclassification from AOCI, tax | (247) | (201) | (649) | (602) | (850) | (804) |
Reclassification from AOCI, net of tax | 783 | 635 | 2,054 | 1,906 | 2,689 | 2,540 |
Other comprehensive income (loss), before tax | 1,030 | 836 | 2,703 | 2,508 | 3,539 | 3,344 |
Other comprehensive income (loss), tax | (247) | (201) | (649) | (602) | (850) | (804) |
Total other comprehensive income (loss), net of tax | 783 | 635 | 2,054 | 1,906 | 2,689 | 2,540 |
Ending balance, before tax | (3,263) | (3,263) | (3,263) | |||
Ending balance, tax | 782 | 782 | 782 | |||
Ending balance | (2,481) | (2,481) | (2,481) | |||
Foreign Currency Items | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance, before tax | (1,581) | |||||
Beginning balance | (1,581) | |||||
Other comprehensive income (loss) before reclassifications, before tax | 1,024 | (447) | (1,187) | 1,131 | (280) | (877) |
Other comprehensive income (loss) before reclassifications, net of tax | 1,024 | (447) | (1,187) | 1,131 | (280) | (877) |
Other comprehensive income (loss), before tax | (1,187) | |||||
Total other comprehensive income (loss), net of tax | (1,187) | |||||
Ending balance, before tax | (2,768) | (2,768) | (2,768) | |||
Ending balance | (2,768) | (2,768) | (2,768) | |||
AOCI Attributable to Parent | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (55,617) | (48,581) | (56,732) | (52,668) | (47,775) | |
Ending balance | (52,783) | (47,775) | (52,783) | (47,775) | (52,783) | (47,775) |
Southwest Gas Corporation | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 1,929,606 | |||||
Beginning balance, attributable to parent | 2,005,152 | |||||
Other comprehensive income (loss), before tax | 2,382 | 1,650 | 6,758 | 4,950 | (6,222) | 8,544 |
Other comprehensive income (loss), tax | (572) | (397) | (1,622) | (1,188) | 1,494 | (2,052) |
Total other comprehensive income (loss), net of tax | 1,810 | 1,253 | 5,136 | 3,762 | (4,728) | 6,492 |
Ending balance, attributable to parent | 2,144,273 | 2,144,273 | 2,144,273 | |||
Ending balance | 2,144,273 | 1,929,606 | 2,144,273 | 1,929,606 | 2,144,273 | 1,929,606 |
Southwest Gas Corporation | Defined Benefit Plans | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance, attributable to parent, before tax | (66,601) | |||||
Beginning balance, attributable to parent, tax | 15,985 | |||||
Beginning balance, attributable to parent | (50,616) | |||||
Other comprehensive income (loss), before tax | 4,055 | |||||
Other comprehensive income (loss), tax | (973) | |||||
Total other comprehensive income (loss), net of tax | 3,082 | |||||
Ending balance, attributable to parent, before tax | (62,546) | (62,546) | (62,546) | |||
Ending balance, attributable to parent, tax | 15,012 | 15,012 | 15,012 | |||
Ending balance, attributable to parent | (47,534) | (47,534) | (47,534) | |||
Southwest Gas Corporation | Amortization of prior service cost | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Other comprehensive income (loss), before tax | 867 | |||||
Other comprehensive income (loss), tax | (208) | |||||
Total other comprehensive income (loss), net of tax | 659 | |||||
Southwest Gas Corporation | Amortization of net actuarial loss | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Other comprehensive income (loss), before tax | 28,372 | |||||
Other comprehensive income (loss), tax | (6,809) | |||||
Total other comprehensive income (loss), net of tax | 21,563 | |||||
Southwest Gas Corporation | Regulatory adjustment | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Other comprehensive income (loss), before tax | (25,184) | |||||
Other comprehensive income (loss), tax | 6,044 | |||||
Total other comprehensive income (loss), net of tax | (19,140) | |||||
Southwest Gas Corporation | FSIRS | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance, attributable to parent, before tax | (5,966) | |||||
Beginning balance, attributable to parent, tax | 1,431 | |||||
Beginning balance, attributable to parent | (4,535) | |||||
Reclassification from AOCI, before Tax | 2,703 | |||||
Reclassification from AOCI, tax | (649) | |||||
Reclassification from AOCI, net of tax | 2,054 | |||||
Other comprehensive income (loss), before tax | 2,703 | |||||
Other comprehensive income (loss), tax | (649) | |||||
Total other comprehensive income (loss), net of tax | 2,054 | |||||
Ending balance, attributable to parent, before tax | (3,263) | (3,263) | (3,263) | |||
Ending balance, attributable to parent, tax | 782 | 782 | 782 | |||
Ending balance, attributable to parent | (2,481) | (2,481) | (2,481) | |||
Southwest Gas Corporation | AOCI Attributable to Parent | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (51,825) | (46,540) | (55,151) | (49,049) | (45,287) | |
Beginning balance, attributable to parent | (55,151) | |||||
Ending balance, attributable to parent | (50,015) | (50,015) | (50,015) | |||
Ending balance | $ (50,015) | $ (45,287) | $ (50,015) | $ (45,287) | $ (50,015) | $ (45,287) |
Other Comprehensive Income an_6
Other Comprehensive Income and Accumulated Other Comprehensive Income - Amounts Recognized Before Tax, Defined Benefit Plans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Equity [Abstract] | ||
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) |
Segment Information - Accounts
Segment Information - Accounts Receivable for Services (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Centuri | ||
Segment Reporting Information [Line Items] | ||
Centuri accounts receivable for services provided to Southwest | $ 15,102 | $ 15,235 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||||||
Revenues | $ 791,226 | $ 725,230 | $ 2,384,793 | $ 2,271,780 | $ 3,232,930 | $ 3,058,434 | ||
Segment net income (loss) | 18,273 | 5,353 | 128,780 | 122,218 | $ 220,498 | 220,498 | $ 191,522 | 191,522 |
Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 759,134 | 690,876 | 2,282,576 | 2,149,671 | 3,094,096 | 2,897,089 | ||
Segment Reconciling Items | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | (32,092) | (34,354) | (102,217) | (122,109) | (138,834) | (161,345) | ||
Segment net income (loss) | (627) | (473) | (1,724) | (1,253) | (2,110) | (1,433) | ||
Natural Gas Operations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 210,834 | 209,980 | 976,095 | 989,368 | 1,355,666 | 1,359,581 | ||
Segment net income (loss) | (15,973) | (20,012) | 79,568 | 86,746 | 155,993 | 146,287 | ||
Natural Gas Operations | Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 210,834 | 209,980 | 976,095 | 989,368 | 1,355,666 | 1,359,581 | ||
Natural Gas Operations | Segment Reconciling Items | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 0 | 0 | 0 | 0 | 0 | 0 | ||
Utility Infrastructure Services | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 580,392 | 515,250 | 1,408,698 | 1,282,412 | 1,877,264 | 1,698,853 | ||
Segment net income (loss) | 34,873 | 25,838 | 50,936 | 36,725 | 66,615 | 46,668 | ||
Utility Infrastructure Services | Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 548,300 | 480,896 | 1,306,481 | 1,160,303 | 1,738,430 | 1,537,508 | ||
Utility Infrastructure Services | Segment Reconciling Items | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | $ (32,092) | $ (34,354) | $ (102,217) | $ (122,109) | $ (138,834) | $ (161,345) |