Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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, $1 Par Value | |
Trading Symbol | SWX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,093,403 | |
Entity Central Index Key | 0001692115 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Southwest Gas Corporation | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Entity File Number | 1-7850 | |
Entity Registrant Name | Southwest Gas Corporation | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 88-0085720 | |
Entity Address, Address Line One | 8360 S. Durango Drive | |
Entity Address, Address Line Two | Post Office Box 98510 | |
Entity Address, City or Town | Las Vegas, | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89193-8510 | |
City Area Code | (702) | |
Local Phone Number | 876-7237 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Central Index Key | 0000092416 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Utility plant: | ||
Gas plant | $ 8,664,624 | $ 8,384,000 |
Less: accumulated depreciation | (2,481,016) | (2,419,348) |
Construction work in progress | 151,358 | 211,429 |
Net utility plant | 6,334,966 | 6,176,081 |
Other property and investments | 860,701 | 834,245 |
Current assets: | ||
Cash and cash equivalents | 47,565 | 83,352 |
Accounts receivable, net of allowances | 512,385 | 522,172 |
Accrued utility revenue | 38,500 | 82,400 |
Income taxes receivable, net | 23,839 | 10,884 |
Deferred purchased gas costs | 235,104 | 2,053 |
Prepaid and other current assets | 149,402 | 170,152 |
Total current assets | 1,006,795 | 871,013 |
Noncurrent assets: | ||
Goodwill | 348,173 | 345,184 |
Deferred income taxes | 345 | 455 |
Deferred charges and other assets | 488,042 | 508,875 |
Total noncurrent assets | 836,560 | 854,514 |
Total assets | 9,039,022 | 8,735,853 |
Capitalization: | ||
Common stock | 60,718 | 58,823 |
Additional paid-in capital | 1,733,572 | 1,609,155 |
Accumulated other comprehensive loss, net | (55,688) | (61,003) |
Retained earnings | 1,108,279 | 1,067,978 |
Total equity | 2,846,881 | 2,674,953 |
Redeemable noncontrolling interest | 200,529 | 165,716 |
Long-term debt, less current maturities | 2,478,823 | 2,732,200 |
Total capitalization | 5,526,233 | 5,572,869 |
Current liabilities: | ||
Current maturities of long-term debt | 319,417 | 40,433 |
Short-term debt | 318,000 | 107,000 |
Accounts payable | 182,304 | 231,301 |
Customer deposits | 44,088 | 67,920 |
Income taxes payable, net | 19,259 | 12,556 |
Accrued general taxes | 51,712 | 48,640 |
Accrued interest | 19,653 | 20,536 |
Deferred purchased gas costs | 0 | 54,636 |
Other current liabilities | 317,970 | 328,945 |
Total current liabilities | 1,272,403 | 911,967 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits, net | 694,719 | 647,453 |
Accumulated removal costs | 409,000 | 404,000 |
Other deferred credits and other long-term liabilities | 1,136,667 | 1,199,564 |
Total deferred income taxes and other credits | 2,240,386 | 2,251,017 |
Total capitalization and liabilities | 9,039,022 | 8,735,853 |
Southwest Gas Corporation | ||
Utility plant: | ||
Gas plant | 8,664,624 | 8,384,000 |
Less: accumulated depreciation | (2,481,016) | (2,419,348) |
Construction work in progress | 151,358 | 211,429 |
Net utility plant | 6,334,966 | 6,176,081 |
Other property and investments | 149,497 | 143,611 |
Current assets: | ||
Cash and cash equivalents | 37,718 | 41,070 |
Accounts receivable, net of allowances | 118,842 | 146,861 |
Accrued utility revenue | 38,500 | 82,400 |
Income taxes receivable, net | 11,826 | 11,155 |
Deferred purchased gas costs | 235,104 | 2,053 |
Prepaid and other current assets | 120,587 | 152,748 |
Total current assets | 562,577 | 436,287 |
Noncurrent assets: | ||
Goodwill | 10,095 | 10,095 |
Deferred charges and other assets | 471,548 | 490,562 |
Total noncurrent assets | 481,643 | 500,657 |
Total assets | 7,528,683 | 7,256,636 |
Capitalization: | ||
Common stock | 49,112 | 49,112 |
Additional paid-in capital | 1,529,419 | 1,410,345 |
Accumulated other comprehensive loss, net | (57,552) | (61,135) |
Retained earnings | 908,757 | 835,146 |
Total equity | 2,429,736 | 2,233,468 |
Long-term debt, less current maturities | 2,163,832 | 2,438,206 |
Total capitalization | 4,593,568 | 4,671,674 |
Current liabilities: | ||
Current maturities of long-term debt | 275,000 | 0 |
Short-term debt | 291,000 | 57,000 |
Accounts payable | 95,628 | 161,646 |
Customer deposits | 44,088 | 67,920 |
Accrued general taxes | 51,712 | 48,640 |
Accrued interest | 19,594 | 20,495 |
Deferred purchased gas costs | 0 | 54,636 |
Payable to parent | 267 | 142 |
Other current liabilities | 145,974 | 146,046 |
Total current liabilities | 923,263 | 556,525 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits, net | 620,410 | 581,100 |
Accumulated removal costs | 409,000 | 404,000 |
Other deferred credits and other long-term liabilities | 982,442 | 1,043,337 |
Total deferred income taxes and other credits | 2,011,852 | 2,028,437 |
Total capitalization and liabilities | $ 7,528,683 | $ 7,256,636 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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) | 59,087,795 | 57,192,925 |
Common stock, outstanding (in shares) | 59,087,795 | 57,192,925 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating revenues: | ||||||
Gas operating revenues | $ 292,796 | $ 262,434 | $ 814,728 | $ 765,261 | $ 1,400,052 | $ 1,354,812 |
Utility infrastructure services revenues | 291,344 | 259,066 | 826,864 | 763,859 | 1,402,156 | 1,343,565 |
Total operating revenues | 821,421 | 757,247 | 1,707,328 | 1,593,567 | 3,412,634 | 3,166,934 |
Operating expenses: | ||||||
Net cost of gas sold | 76,496 | 67,473 | 232,517 | 228,294 | 347,060 | 355,672 |
Operations and maintenance | 104,833 | 99,419 | 211,523 | 203,200 | 416,439 | 415,812 |
Depreciation and amortization | 82,848 | 77,217 | 176,290 | 164,870 | 343,447 | 320,226 |
Taxes other than income taxes | 19,338 | 15,342 | 40,025 | 31,720 | 71,765 | 62,716 |
Utility infrastructure services expenses | 478,640 | 430,224 | 814,254 | 749,538 | 1,794,145 | 1,620,101 |
Total operating expenses | 762,155 | 689,675 | 1,474,609 | 1,377,622 | 2,972,856 | 2,774,527 |
Operating income | 59,266 | 67,572 | 232,719 | 215,945 | 439,778 | 392,407 |
Other income and (expenses): | ||||||
Net interest deductions | (25,939) | (26,450) | (49,903) | (54,830) | (106,550) | (110,828) |
Other income (deductions) | (1,311) | 7,925 | (863) | (12,845) | 5,193 | (10,745) |
Total other income and (expenses) | (27,250) | (18,525) | (50,766) | (67,675) | (101,357) | (121,573) |
Income before income taxes | 32,016 | 49,047 | 181,953 | 148,270 | 338,421 | 270,834 |
Income tax expense (benefit) | 5,542 | 9,166 | 36,634 | 35,384 | 67,003 | 59,517 |
Net income | 26,474 | 39,881 | 145,319 | 112,886 | 271,418 | 211,317 |
Net income attributable to noncontrolling interest | 1,355 | 1,916 | 2,907 | 2,379 | 7,189 | 3,739 |
Net income attributable to Southwest Gas Holdings, Inc. | $ 25,119 | $ 37,965 | $ 142,412 | $ 110,507 | $ 264,229 | $ 207,578 |
Earnings per share: | ||||||
Basic (in USD per share) | $ 0.43 | $ 0.68 | $ 2.45 | $ 2 | $ 4.61 | $ 3.77 |
Diluted (in USD per share) | $ 0.43 | $ 0.68 | $ 2.45 | $ 1.99 | $ 4.60 | $ 3.76 |
Weighted average shares: | ||||||
Basic (in shares) | 58,607 | 55,462 | 58,106 | 55,386 | 57,348 | 55,105 |
Diluted (in shares) | 58,710 | 55,532 | 58,197 | 55,448 | 57,440 | 55,171 |
Southwest Gas Corporation | ||||||
Operating revenues: | ||||||
Gas operating revenues | $ 292,796 | $ 262,434 | $ 814,728 | $ 765,261 | $ 1,400,052 | $ 1,354,812 |
Operating expenses: | ||||||
Net cost of gas sold | 76,496 | 67,473 | 232,517 | 228,294 | 347,060 | 355,672 |
Operations and maintenance | 103,137 | 99,320 | 209,272 | 202,408 | 413,246 | 414,049 |
Depreciation and amortization | 57,631 | 53,198 | 126,329 | 117,923 | 243,701 | 226,588 |
Taxes other than income taxes | 19,338 | 15,342 | 40,025 | 31,720 | 71,765 | 62,716 |
Total operating expenses | 256,602 | 235,333 | 608,143 | 580,345 | 1,075,772 | 1,059,025 |
Operating income | 36,194 | 27,101 | 206,585 | 184,916 | 324,280 | 295,787 |
Other income and (expenses): | ||||||
Net interest deductions | (24,175) | (23,991) | (46,341) | (49,049) | (98,440) | (97,631) |
Other income (deductions) | (1,165) | 7,838 | (615) | (12,698) | 5,493 | (10,719) |
Total other income and (expenses) | (25,340) | (16,153) | (46,956) | (61,747) | (92,947) | (108,350) |
Income before income taxes | 10,854 | 10,948 | 159,629 | 123,169 | 231,333 | 187,437 |
Income tax expense (benefit) | (559) | (994) | 29,501 | 27,628 | 37,628 | 35,483 |
Net income | 11,413 | 11,942 | 130,128 | 95,541 | 193,705 | 151,954 |
Net income attributable to Southwest Gas Holdings, Inc. | 11,413 | 11,942 | 193,705 | 151,954 | ||
Centuri | ||||||
Operating revenues: | ||||||
Utility infrastructure services revenues | $ 528,625 | $ 494,813 | $ 892,600 | $ 828,306 | $ 2,012,582 | $ 1,812,122 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net income | $ 26,474 | $ 39,881 | $ 145,319 | $ 112,886 | $ 271,418 | $ 211,317 |
Defined benefit pension plans: | ||||||
Net actuarial loss | 0 | 0 | 0 | 0 | (43,730) | (54,026) |
Amortization of prior service cost | 182 | 220 | 364 | 440 | 802 | 923 |
Amortization of net actuarial loss | 8,472 | 7,187 | 16,946 | 14,375 | 31,322 | 23,258 |
Prior service cost | 0 | 0 | 0 | 0 | 0 | (1,426) |
Regulatory adjustment | (7,277) | (6,380) | (14,554) | (12,760) | 3,856 | 23,445 |
Net defined benefit pension plans | 1,377 | 1,027 | 2,756 | 2,055 | (7,750) | (7,826) |
Forward-starting interest rate swaps (“FSIRS”): | ||||||
Amounts reclassified into net income | 414 | 635 | 827 | 1,271 | 2,023 | 2,541 |
Net forward-starting interest rate swaps | 414 | 635 | 827 | 1,271 | 2,023 | 2,541 |
Foreign currency translation adjustments | 909 | 1,794 | 1,732 | (2,211) | 5,656 | (1,751) |
Total other comprehensive income (loss), net of tax | 2,700 | 3,456 | 5,315 | 1,115 | (71) | (7,036) |
Comprehensive income | 29,174 | 43,337 | 150,634 | 114,001 | 271,347 | 204,281 |
Comprehensive income attributable to noncontrolling interest | 1,355 | 1,916 | 2,907 | 2,379 | 7,189 | 3,739 |
Comprehensive income attributable to Southwest Gas Holdings, Inc. | 27,819 | 41,421 | 147,727 | 111,622 | 264,158 | 200,542 |
Southwest Gas Corporation | ||||||
Net income | 11,413 | 11,942 | 130,128 | 95,541 | 193,705 | 151,954 |
Defined benefit pension plans: | ||||||
Net actuarial loss | 0 | 0 | 0 | 0 | (43,730) | (54,026) |
Amortization of prior service cost | 182 | 220 | 364 | 440 | 802 | 923 |
Amortization of net actuarial loss | 8,472 | 7,187 | 16,946 | 14,375 | 31,322 | 23,258 |
Prior service cost | 0 | 0 | 0 | 0 | 0 | (1,426) |
Regulatory adjustment | (7,277) | (6,380) | (14,554) | (12,760) | 3,856 | 23,445 |
Net defined benefit pension plans | 1,377 | 1,027 | 2,756 | 2,055 | (7,750) | (7,826) |
Forward-starting interest rate swaps (“FSIRS”): | ||||||
Amounts reclassified into net income | 414 | 635 | 827 | 1,271 | 2,023 | 2,541 |
Net forward-starting interest rate swaps | 414 | 635 | 827 | 1,271 | 2,023 | 2,541 |
Total other comprehensive income (loss), net of tax | 1,791 | 1,662 | 3,583 | 3,326 | (5,727) | (5,285) |
Comprehensive income | $ 13,204 | $ 13,604 | $ 133,711 | $ 98,867 | $ 187,978 | $ 146,669 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||||
Net income | $ 145,319 | $ 112,886 | $ 271,418 | $ 211,317 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 176,290 | 164,870 | 343,447 | 320,226 |
Deferred income taxes | 44,178 | 31,121 | 63,774 | 53,452 |
Changes in current assets and liabilities: | ||||
Accounts receivable, net of allowances | 10,005 | (9,746) | (29,021) | (61,379) |
Accrued utility revenue | 43,900 | 43,300 | (2,700) | (900) |
Deferred purchased gas costs | (287,687) | 53,595 | (305,043) | 38,445 |
Accounts payable | (41,075) | (47,198) | (1,571) | (908) |
Accrued taxes | (3,164) | 9,019 | 2,988 | 16,534 |
Other current assets and liabilities | (31,928) | 78,538 | (3,039) | 97,687 |
Gains on sale of equipment | (4,033) | (309) | (5,572) | (4,951) |
Changes in undistributed stock compensation | 5,736 | 4,332 | 8,518 | 6,526 |
Equity AFUDC | 0 | (2,181) | (2,543) | (4,375) |
Changes in deferred charges and other assets | (11,171) | (8,268) | (35,494) | (13,449) |
Changes in other liabilities and deferred credits | (45,013) | (54,819) | (52,865) | (61,129) |
Net cash provided by operating activities | 1,357 | 375,140 | 252,297 | 597,096 |
CASH FLOW FROM INVESTING ACTIVITIES: | ||||
Construction expenditures and property additions | (338,049) | (423,435) | (739,719) | (890,005) |
Acquisition of businesses, net of cash acquired | 0 | 0 | 0 | (28,105) |
Changes in customer advances | 7,507 | 4,098 | 17,442 | 13,616 |
Other | 9,159 | 4,795 | 13,367 | 18,789 |
Net cash used in investing activities | (321,383) | (414,542) | (708,910) | (885,705) |
CASH FLOW FROM FINANCING ACTIVITIES: | ||||
Issuance of common stock, net | 121,302 | 55,498 | 205,049 | 110,701 |
Dividends paid | (67,130) | (61,445) | (131,189) | (120,834) |
Issuance of long-term debt, net | 82,245 | 620,303 | 124,319 | 730,305 |
Retirement of long-term debt | (60,500) | (117,536) | (299,370) | (277,721) |
Change in credit facility and commercial paper | 0 | (150,000) | 150,000 | (46,000) |
Change in short-term debt | 211,000 | (153,000) | 260,000 | 58,000 |
Withholding remittance - share-based compensation | (1,243) | (2,736) | (1,243) | (2,738) |
Other | (1,623) | (1,460) | (3,565) | (1,875) |
Net cash provided by financing activities | 284,051 | 189,624 | 304,001 | 449,838 |
Effects of currency translation on cash and cash equivalents | 188 | (170) | 586 | (84) |
Change in cash and cash equivalents | (35,787) | 150,052 | (152,026) | 161,145 |
Cash and cash equivalents at beginning of period | 83,352 | 49,539 | 199,591 | 38,446 |
Cash and cash equivalents at end of period | 47,565 | 199,591 | 47,565 | 199,591 |
SUPPLEMENTAL INFORMATION: | ||||
Interest paid, net of amounts capitalized | 47,475 | 51,430 | 101,227 | 103,692 |
Income taxes paid (received), net | 6,659 | (19,410) | 15,118 | (18,490) |
Southwest Gas Corporation | ||||
CASH FLOW FROM OPERATING ACTIVITIES: | ||||
Net income | 130,128 | 95,541 | 193,705 | 151,954 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 126,329 | 117,923 | 243,701 | 226,588 |
Deferred income taxes | 38,178 | 18,186 | 64,989 | 23,684 |
Changes in current assets and liabilities: | ||||
Accounts receivable, net of allowances | 28,018 | 57,047 | (25,096) | (316) |
Accrued utility revenue | 43,900 | 43,300 | (2,700) | (900) |
Deferred purchased gas costs | (287,687) | 53,595 | (305,043) | 38,445 |
Accounts payable | (56,518) | (53,712) | 6,812 | (6,398) |
Accrued taxes | 2,401 | 17,746 | (16,872) | 26,693 |
Other current assets and liabilities | 4,549 | 71,512 | (18,418) | 86,094 |
Changes in undistributed stock compensation | 4,159 | 3,494 | 5,959 | 4,880 |
Equity AFUDC | 0 | (2,181) | (2,543) | (4,375) |
Changes in deferred charges and other assets | (17,540) | (13,689) | (48,142) | (25,120) |
Changes in other liabilities and deferred credits | (45,309) | (55,173) | (55,272) | (61,698) |
Net cash provided by operating activities | (29,392) | 353,589 | 41,080 | 459,531 |
CASH FLOW FROM INVESTING ACTIVITIES: | ||||
Construction expenditures and property additions | (276,109) | (354,501) | (613,824) | (767,998) |
Changes in customer advances | 7,507 | 4,098 | 17,442 | 13,616 |
Other | 6 | 100 | 677 | 54 |
Net cash used in investing activities | (268,596) | (350,303) | (595,705) | (754,328) |
CASH FLOW FROM FINANCING ACTIVITIES: | ||||
Contributions from parent | 115,641 | 99,500 | 194,063 | 157,344 |
Dividends paid | (53,500) | (51,100) | (106,900) | (100,700) |
Issuance of long-term debt, net | 0 | 446,508 | 0 | 446,508 |
Retirement of long-term debt | 0 | 0 | (125,000) | 0 |
Change in credit facility and commercial paper | 0 | (150,000) | 150,000 | (46,000) |
Change in short-term debt | 234,000 | (194,000) | 291,000 | 0 |
Withholding remittance - share-based compensation | (1,242) | (2,736) | (1,242) | (2,738) |
Other | (263) | (1,163) | (362) | (1,276) |
Net cash provided by financing activities | 294,636 | 147,009 | 401,559 | 453,138 |
Change in cash and cash equivalents | (3,352) | 150,295 | (153,066) | 158,341 |
Cash and cash equivalents at beginning of period | 41,070 | 40,489 | 190,784 | 32,443 |
Cash and cash equivalents at end of period | 37,718 | 190,784 | 37,718 | 190,784 |
SUPPLEMENTAL INFORMATION: | ||||
Interest paid, net of amounts capitalized | 44,834 | 46,576 | 94,984 | 92,381 |
Income taxes paid (received), net | $ 0 | $ (22,962) | $ 3,359 | $ (22,262) |
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. |
Beginning balance (in shares) at Dec. 31, 2019 | 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 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Common stock issuances (in shares) | 903,000 | ||||||||||
Common stock issuances | $ 903 | 56,693 | |||||||||
Foreign currency exchange translation adjustment | (2,211) | ||||||||||
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax | 2,055 | 2,055 | |||||||||
FSIRS amounts reclassified to net income, net of tax | $ 1,271 | $ 1,271 | 1,271 | 1,271 | |||||||
Net income | 110,507 | 95,541 | |||||||||
Share-based compensation | 1,260 | (502) | |||||||||
Contributions from Southwest Gas Holdings, Inc. | 99,500 | ||||||||||
Dividends declared | (63,837) | (52,300) | |||||||||
Redemption value adjustments | 0 | ||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 55,910,000 | 47,482,000 | |||||||||
Ending balance at Jun. 30, 2020 | 2,151,977 | $ 57,540 | $ 49,112 | 1,523,630 | 1,329,843 | (55,617) | (51,825) | 1,085,742 | 824,847 | $ 2,611,295 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared per share (in USD per share) | $ 1.14 | ||||||||||
Beginning balance (in shares) at Mar. 31, 2020 | 55,126,000 | ||||||||||
Beginning balance at Mar. 31, 2020 | $ 56,756 | 1,470,411 | 1,279,208 | (59,073) | (53,487) | 1,079,801 | 839,443 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Common stock issuances (in shares) | 784,000 | ||||||||||
Common stock issuances | $ 784 | 53,219 | |||||||||
Foreign currency exchange translation adjustment | 1,794 | ||||||||||
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 | $ 635 | 635 | 635 | 635 | |||||||
Net income | 37,965 | 11,942 | |||||||||
Share-based compensation | 1,135 | (138) | |||||||||
Contributions from Southwest Gas Holdings, Inc. | 49,500 | ||||||||||
Dividends declared | (32,024) | (26,400) | |||||||||
Redemption value adjustments | 0 | ||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 55,910,000 | 47,482,000 | |||||||||
Ending balance at Jun. 30, 2020 | 2,151,977 | $ 57,540 | $ 49,112 | 1,523,630 | 1,329,843 | (55,617) | (51,825) | 1,085,742 | 824,847 | 2,611,295 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared per share (in USD per share) | $ 0.57 | ||||||||||
FSIRS amounts reclassified to net income, net of tax | $ 2,023 | 2,023 | |||||||||
Ending balance (in shares) at Jun. 30, 2021 | 59,087,795 | 59,088,000 | 47,482,000 | ||||||||
Ending balance at Jun. 30, 2021 | 2,429,736 | $ 60,718 | $ 49,112 | 1,733,572 | 1,529,419 | (55,688) | (57,552) | 1,108,279 | 908,757 | 2,846,881 | |
Beginning balance (in shares) at Dec. 31, 2020 | 57,192,925 | 57,193,000 | |||||||||
Beginning balance at Dec. 31, 2020 | $ 58,823 | 1,609,155 | 1,410,345 | (61,003) | (61,135) | 1,067,978 | 835,146 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Common stock issuances (in shares) | 1,895,000 | ||||||||||
Common stock issuances | $ 1,895 | 124,417 | |||||||||
Foreign currency exchange translation adjustment | 1,732 | ||||||||||
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax | 2,756 | 2,756 | |||||||||
FSIRS amounts reclassified to net income, net of tax | $ 827 | 827 | 827 | 827 | |||||||
Net income | 142,412 | 130,128 | |||||||||
Share-based compensation | 3,433 | (517) | |||||||||
Contributions from Southwest Gas Holdings, Inc. | 115,641 | ||||||||||
Dividends declared | (70,205) | (56,000) | |||||||||
Redemption value adjustments | $ 31,906 | (31,906) | |||||||||
Ending balance (in shares) at Jun. 30, 2021 | 59,087,795 | 59,088,000 | 47,482,000 | ||||||||
Ending balance at Jun. 30, 2021 | 2,429,736 | $ 60,718 | $ 49,112 | 1,733,572 | 1,529,419 | (55,688) | (57,552) | 1,108,279 | 908,757 | 2,846,881 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared per share (in USD per share) | $ 1.19 | ||||||||||
Beginning balance (in shares) at Mar. 31, 2021 | 57,995,000 | ||||||||||
Beginning balance at Mar. 31, 2021 | $ 59,625 | 1,660,108 | 1,458,344 | (58,388) | (59,343) | 1,112,377 | 926,011 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Common stock issuances (in shares) | 1,093,000 | ||||||||||
Common stock issuances | $ 1,093 | 73,464 | |||||||||
Foreign currency exchange translation adjustment | 909 | ||||||||||
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax | 1,377 | 1,377 | |||||||||
FSIRS amounts reclassified to net income, net of tax | $ 414 | 414 | 414 | 414 | |||||||
Net income | 25,119 | 11,413 | |||||||||
Share-based compensation | 1,418 | (167) | |||||||||
Contributions from Southwest Gas Holdings, Inc. | 69,657 | ||||||||||
Dividends declared | (35,329) | (28,500) | |||||||||
Redemption value adjustments | $ 32,000 | 6,112 | |||||||||
Ending balance (in shares) at Jun. 30, 2021 | 59,087,795 | 59,088,000 | 47,482,000 | ||||||||
Ending balance at Jun. 30, 2021 | $ 2,429,736 | $ 60,718 | $ 49,112 | $ 1,733,572 | $ 1,529,419 | $ (55,688) | $ (57,552) | $ 1,108,279 | $ 908,757 | $ 2,846,881 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared per share (in USD per share) | $ 0.595 |
Background, Organization, and S
Background, Organization, and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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. In June 2021, Centuri entered into an agreement to acquire Drum Parent, Inc. (“Drum”) and its U.S. operations, consisting principally of the utility infrastructure services operations of Drum’s primary subsidiary, Riggs Distler & Company, Inc. (“Riggs”). Upon closing, the agreement provides for consideration of $855 million subject to certain holdbacks and working capital adjustments, and also includes certain termination rights, including mutual rights if the transaction is not completed before October 31, 2021. The operations to be acquired would expand Centuri’s electric services footprint in the Northeast and Mid-Atlantic regions of the U.S. The Company plans to fund this acquisition with a new term loan to be executed by Centuri. The transaction is expected to be completed in the third quarter of 2021. 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”). 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. In association with the novel Coronavirus (“COVID-19”) pandemic environment, utility operations, and to a large extent, utility infrastructure services, have been deemed “essential services.” 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 notes thereto included in the 2020 Annual Report to Stockholders, which is incorporated by reference into the 2020 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, 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) June 30, 2021 December 31, 2020 Southwest Gas Corporation: Net cash surrender value of COLI policies $ 146,762 $ 140,874 Other property 2,735 2,737 Total Southwest Gas Corporation 149,497 143,611 Centuri property, equipment, and intangibles 1,139,073 1,089,414 Centuri accumulated provision for depreciation and amortization (457,698) (422,741) Other property and investments 29,829 23,961 Total Southwest Gas Holdings, Inc. $ 860,701 $ 834,245 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 an insignificant amount of money market fund investments for each entity at June 30, 2021 and December 31, 2020, respectively, 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 include customer advances applied as contributions toward utility construction activity, and capital expenditures that were not paid as of period-end reporting dates, but rather included in accounts payable. Typical activities that represent aspects of both non-cash investing and non-cash financing activities relate to right-of-use assets obtained in exchange for lease liabilities (including, at times, lease terminations and modifications). Amounts related to these collective 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. Due to COVID-19, Southwest continued the moratorium initiated in March 2020 on disconnection of natural gas service for non-payment; however, Southwest expects to lift the moratorium in the second half of 2021. While the moratorium on disconnections continues, Southwest began assessing late fees on past-due balances for Arizona and Nevada in April 2021, and expects to recommence late fee assessments in the California jurisdiction in the latter half of 2021. 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 impact of COVID-19. The allowance for uncollectible accounts receivable balances as of June 30, 2021 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 on disconnections 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 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 uncollectible accounts 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. Deferred Purchased Gas Costs . The various regulatory commissions have established procedures to enable Southwest to adjust its billing rates for changes in the cost of natural gas purchased. The difference between the current cost of gas purchased and the cost of gas recovered in billed rates is deferred. Generally, these deferred amounts are recovered or refunded within one year. In mid-February 2021, the central U.S. (from south Texas to North Dakota and the eastern Rocky Mountains) experienced extreme cold temperatures, which increased natural gas demand and caused supply issues due to wellhead freeze-offs, power outages, or other adverse operating conditions upstream of Southwest’s distribution systems. These conditions caused daily natural gas prices to reach unprecedented levels. During this time, Southwest secured natural gas supplies, albeit at substantially higher prices, maintaining service to its customers. The incremental cost for these supplies was approximately $250 million, funded using a 364-day $250 million Bank Term Loan executed in March 2021 (see Note 5 – Debt) . The incremental gas costs are expected to be collected from customers through the purchased gas adjustment (“PGA”) mechanisms. Following the extreme weather event, an interstate transmission pipeline company billed Southwest, in addition to customary transmission costs, $65 million (later reduced to approximately $55 million) for pipeline imbalance charges, allegedly incurred during the period of the pipeline’s critical operation condition. However, Southwest has formally disputed these imbalance charges, in addition to interest on that amount, believing that no amounts were due to the pipeline. In June 2021, the interstate transmission pipeline company requested approval from the Federal Energy Regulatory Commission (the “FERC”) to waive these imbalance charges and interest, affirming that they had the authority to elect the option to waive the underlying charges based on their tariff, but were seeking approval by the FERC for purposes of transparency and regulatory certainty. Approval of this request is pending. Consequently, Southwest has not recognized this charge. Pipeline transmission costs, including periodic imbalance charges, are components of the cost of gas recovered from customers through the PGA and similar mechanisms. Prepaid and other current assets. Prepaid and other current assets includes gas pipe materials and operating supplies of $51 million at June 30, 2021 and $50 million at December 31, 2020 (carried at weighted average cost). 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 they remained 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, 2020, management also qualitatively assessed whether events during the first six months of 2021 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, 2020 $ 10,095 $ 335,089 $ 345,184 Foreign currency translation adjustment — 2,989 2,989 June 30, 2021 $ 10,095 $ 338,078 $ 348,173 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 the Company includes $35.2 million and $32.6 million of dividends declared as of June 30, 2021 and December 31, 2020, 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 June 30, Six Months Ended Twelve Months Ended (Thousands of dollars) 2021 2020 2021 2020 2021 2020 Southwest Gas Corporation - natural gas operations segment: Change in COLI policies $ 3,100 $ 12,000 $ 5,800 $ (3,500) $ 18,500 $ 2,900 Interest income 1,231 414 1,947 1,802 4,160 4,739 Equity AFUDC (981) 1,120 — 2,181 2,543 4,375 Other components of net periodic benefit cost (3,505) (5,006) (7,010) (10,011) (17,021) (17,540) Miscellaneous income and (expense) (1,010) (690) (1,352) (3,170) (2,689) (5,193) Southwest Gas Corporation - total other income (deductions) (1,165) 7,838 (615) (12,698) 5,493 (10,719) Utility infrastructure services segment: Foreign transaction gain (loss) (9) (6) (12) (16) (12) (22) Miscellaneous income and (expense) (137) 93 (236) (139) (288) (65) Centuri - total other income (deductions) (146) 87 (248) (155) (300) (87) Corporate and administrative — — — 8 — 61 Consolidated Southwest Gas Holdings, Inc. - total other income (deductions) $ (1,311) $ 7,925 $ (863) $ (12,845) $ 5,193 $ (10,745) 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 . 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 $32 million during 2021 . 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, 2020 $ 165,716 Net income attributable to redeemable noncontrolling interest 2,907 Redemption value adjustment 31,906 Balance, June 30, 2021 $ 200,529 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 Six Months Ended Twelve Months Ended (In thousands) 2021 2020 2021 2020 2021 2020 Weighted average basic shares 58,607 55,462 58,106 55,386 57,348 55,105 Effect of dilutive securities: Management Incentive Plan shares — — — — — 6 Restricted stock units (1) 103 70 91 62 92 60 Weighted average diluted shares 58,710 55,532 58,197 55,448 57,440 55,171 (1) The number of securities includ ed 95,000 and 63,000 performance shares during the three months ending June 30, 2021 and 2020, 85,000 and 57,000 performance shares during the six months ending June 30, 2021 and 2020, and 83,000 and 51,000 performance shares during the twelve months ending June 30, 2021 and 2020, 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 2021: In December 2019, the Financial Accounting Standards Board (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 Company and Southwest adopted the update in the first quarter of 2021, the impact of which was not material to the condensed consolidated financial statements of the Company or Southwest. Recently issued accounting pronouncements that will be effective after 2021: 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 such reform. The update applies only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another 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 what impacts, if any, this update might have on the Company’s consolidated financial statements and disclosures. |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost | 6 Months Ended |
Jun. 30, 2021 | |
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 service cost 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 June 30, Three Months Six Months Twelve Months 2021 2020 2021 2020 2021 2020 (Thousands of dollars) Service cost $ 10,290 $ 8,575 $ 20,580 $ 17,149 $ 37,730 $ 30,081 Interest cost 10,108 11,389 20,216 22,777 42,994 47,280 Expected return on plan assets (18,088) (16,324) (36,176) (32,648) (68,824) (62,770) Amortization of net actuarial loss 10,489 9,006 20,978 18,013 38,990 29,191 Net periodic benefit cost $ 12,799 $ 12,646 $ 25,598 $ 25,291 $ 50,890 $ 43,782 SERP June 30, Three Months Six Months Twelve Months 2021 2020 2021 2020 2021 2020 (Thousands of dollars) Service cost $ 132 $ 97 $ 263 $ 195 $ 457 $ 328 Interest cost 358 402 716 803 1,517 1,683 Amortization of net actuarial loss 660 451 1,320 902 2,223 1,412 Net periodic benefit cost $ 1,150 $ 950 $ 2,299 $ 1,900 $ 4,197 $ 3,423 PBOP June 30, Three Months Six Months Twelve Months 2021 2020 2021 2020 2021 2020 (Thousands of dollars) Service cost $ 423 $ 395 $ 846 $ 791 $ 1,636 $ 1,429 Interest cost 548 645 1,096 1,290 2,388 2,812 Expected return on plan assets (810) (852) (1,620) (1,704) (3,324) (3,282) Amortization of prior service costs 240 289 480 578 1,057 1,214 Net periodic benefit cost $ 401 $ 477 $ 802 $ 955 $ 1,757 $ 2,173 |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended Twelve Months Ended June 30, (Thousands of dollars) 2021 2020 2021 2020 2021 2020 Residential $ 193,322 $ 181,298 $ 596,465 $ 559,853 $ 995,132 $ 950,540 Small commercial 56,093 41,455 137,491 123,918 235,114 233,241 Large commercial 13,158 9,979 25,831 22,646 47,818 46,496 Industrial/other 6,974 6,499 20,744 13,201 33,785 23,384 Transportation 21,797 19,835 46,333 44,241 90,307 89,904 Revenue from contracts with customers 291,344 259,066 826,864 763,859 1,402,156 1,343,565 Alternative revenue program revenues (deferrals) (1,531) 4,111 (17,904) 346 (6,110) 6,387 Other revenues (1) 2,983 (743) 5,768 1,056 4,006 4,860 Total Gas operating revenues $ 292,796 $ 262,434 $ 814,728 $ 765,261 $ 1,400,052 $ 1,354,812 (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 customer rates expected to be returned to customers in future periods. Late fees and certain other fees were reduced for the six- and twelve-month periods ended June 30, 2021 (and in all comparative periods of 2020) due to a moratorium on late fees and disconnection for nonpayment during the COVID-19 pandemic. 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 Six Months Ended Twelve Months Ended June 30, (Thousands of dollars) 2021 2020 2021 2020 2021 2020 Service Types: Gas infrastructure services $ 346,877 $ 330,157 $ 568,714 $ 547,866 $ 1,282,008 $ 1,265,131 Electric power infrastructure services 97,644 95,286 191,605 167,606 435,825 301,656 Other 84,104 69,370 132,281 112,834 294,749 245,335 Total Utility infrastructure services revenues $ 528,625 $ 494,813 $ 892,600 $ 828,306 $ 2,012,582 $ 1,812,122 Three Months Ended Six Months Ended Twelve Months Ended June 30, (Thousands of dollars) 2021 2020 2021 2020 2021 2020 Contract Types: Master services agreement $ 398,650 $ 375,502 $ 692,330 $ 639,047 $ 1,543,292 $ 1,410,909 Bid contract 129,975 119,311 200,270 189,259 469,290 401,213 Total Utility infrastructure services revenues $ 528,625 $ 494,813 $ 892,600 $ 828,306 $ 2,012,582 $ 1,812,122 Unit price contracts $ 361,926 $ 365,253 $ 596,375 $ 608,389 $ 1,344,626 $ 1,397,473 Fixed price contracts 50,455 36,011 85,049 63,556 179,194 133,515 Time and materials contracts 116,244 93,549 211,176 156,361 488,762 281,134 Total Utility infrastructure services revenues $ 528,625 $ 494,813 $ 892,600 $ 828,306 $ 2,012,582 $ 1,812,122 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; the table also includes amounts billed in excess of revenue earned on contracts (contract liability), which are included in Other current liabilities as of June 30, 2021 and December 31, 2020 on the Company’s Condensed Consolidated Balance Sheets: (Thousands of dollars) June 30, 2021 December 31, 2020 Contracts receivable, net $ 263,589 $ 278,316 Revenue earned on contracts in progress in excess of billings 129,954 96,996 Amounts billed in excess of revenue earned on contracts 9,077 4,507 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, 2020 to June 30, 2021 is due to revenue recognized of $4.5 million that was included in this item as of January 1, 2021, after which time it became earned and the balance was reduced; the change also includes 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. Furthermore, 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 June 30, 2021, Centuri had 18 contracts 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 June 30, 2021 was $49.1 million. Centuri expects to recognize the remaining performance obligations over approximately the next two years; 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) June 30, 2021 December 31, 2020 Billed on completed contracts and contracts in progress $ 260,755 $ 273,778 Other receivables 5,285 6,692 Contracts receivable, gross 266,040 280,470 Allowance for doubtful accounts (2,451) (2,154) Contracts receivable, net $ 263,589 $ 278,316 |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2021 | |
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 April 8, 2021, the Company entered into a Sales Agency Agreement between the Company and BNY Mellon Capital Markets, LLC and J.P. Morgan Securities LLC (the “Equity Shelf Program”) for the offer and sale of up to $500 million of common stock from time to time in an at-the-market offering program. The shares are issued pursuant to the Company’s automatic shelf registration statement on Form S-3 (File No. 333-251074). The following table provides the activity under the Equity Shelf Program for the quarter and life-to-date ended June 30, 2021: Gross proceeds $ 70,360,412 Less: agent commissions (703,604) Net proceeds $ 69,656,808 Number of shares sold 1,050,597 Weighted average price per share $ 66.97 As of June 30, 2021, the Company had up to $429,639,588 in 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, as well as for the repayment or repurchase of indebtedness (including amounts outstanding from time to time under the credit facilities, senior notes, term loan, or future credit facilities), and to provide for working capital. During the quarter ended March 31, 2021, the Company sold essentially all of the remaining common stock available for sale under a previously effective equity shelf program. During the six months ended June 30, 2021, the Company issued approximately 47,000 shares of common stock through the Restricted Stock/Unit Plan and Omnibus Incentive Plan. Additionally, during the six months ended June 30, 2021, the Company issued 91,000 shares of common stock through the Dividend Reinvestment and Stock Purchase Plan, raising approximately $5.8 million . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
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. Details surrounding the fair value, as described in Note 1 – Background, Organization, and Summary of Significant Accounting Policies, and individual carrying values of instruments are provided in the table that follows. June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair (Thousands of dollars) Southwest Gas Corporation: Debentures: Notes, 6.1%, due 2041 $ 125,000 $ 166,986 $ 125,000 $ 174,858 Notes, 3.875%, due 2022 250,000 254,203 250,000 258,825 Notes, 4.875%, due 2043 250,000 302,473 250,000 317,190 Notes, 3.8%, due 2046 300,000 325,005 300,000 347,046 Notes, 3.7%, due 2028 300,000 332,154 300,000 344,553 Notes, 4.15%, due 2049 300,000 341,970 300,000 370,278 Notes, 2.2%, due 2030 450,000 448,317 450,000 474,552 8% Series, due 2026 75,000 96,504 75,000 99,723 Medium-term notes, 7.78% series, due 2022 25,000 26,080 25,000 26,663 Medium-term notes, 7.92% series, due 2027 25,000 32,472 25,000 33,802 Medium-term notes, 6.76% series, due 2027 7,500 9,245 7,500 9,613 Unamortized discount and debt issuance costs (17,319) (17,822) 2,090,181 2,089,678 Revolving credit facility and commercial paper 150,000 150,000 150,000 150,000 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 (1,349) (1,472) 198,651 198,528 Less: current maturities (275,000) — Long-term debt, less current maturities - Southwest Gas Corporation $ 2,163,832 $ 2,438,206 Centuri: Centuri term loan facility $ 218,823 $ 221,176 $ 226,648 $ 230,824 Unamortized debt issuance costs (675) (820) 218,148 225,828 Centuri secured revolving credit facility 68,807 68,841 26,626 26,645 Centuri other debt obligations 72,454 73,690 81,973 84,246 Less: current maturities (44,417) (40,433) Long-term debt, less current maturities - Centuri $ 314,992 $ 293,994 Consolidated Southwest Gas Holdings, Inc.: Southwest Gas Corporation long-term debt $ 2,438,832 $ 2,438,206 Centuri long-term debt 359,408 334,427 Less: current maturities (319,417) (40,433) Long-term debt, less current maturities - Southwest Gas Holdings, Inc. $ 2,478,823 $ 2,732,200 The fair values of Southwest's 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. 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, and as such are categorized as Level 2 in the hierarchy. Centuri's secured revolving credit and term loan facility and other debt obligations (not actively traded) are categorized as Level 3; fair values were based on a conventional discounted cash flow methodology utilizing current market pricing yield curves. Southwest has a $400 million credit facility that is scheduled to expire in April 2025. Southwest designates $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 June 30, 2021, 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 June 30, 2021, $150 million was outstanding on the long-term portion (including $50 million under the com mercial paper program, discussed below) of the facility and $41 million of borrowings were outstanding on the short-term portion of this credit facility discussed below. 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 June 30, 2021, as noted above, $50 million of borrowings were outstanding under the commercial paper program. 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 June 30, 2021 totaled $1.4 billion. At June 30, 2021, $288 million in borrowings were outstanding under Centuri’s combined secured revolving credit and term loan facility. In connection with the planned acquisition of Riggs, Centuri plans to fund the acquisition with a secured term loan and would establish a new secured revolving credit facility to replace the current facility. Short-Term Debt Southwest Gas Holdings, Inc. has a $100 million credit facility that is scheduled to expire in April 2025 and is primarily used for short-term financing needs. There was $27 million outstanding under this credit facility as of June 30, 2021. As indicated above, under Southwest’s $400 million credit facility, $41 million in short-term borrowings were outstanding at June 30, 2021. In March 2021, Southwest entered into a $250 million Term Loan that matures March 22, 2022. The proceeds were used to fund the increased cost of natural gas supply during the month of February 2021, caused by extreme weather conditions in the central U.S. (see Deferred Purchased Gas Costs in Note 1 – Background, Organization, and Summary of Significant Accounting Policies ). Interest rates for the term loan 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 long-term debt rating. The applicable margin ranges from 0.550% to 1.000% for loans bearing interest with reference to LIBOR and 0.000% for loans bearing interest with reference to an alternate base rate. The effective interest rate was 0.75% at June 30, 2021. The 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. LIBOR Certain rates established at LIBOR are scheduled to be discontinued as a benchmark or reference rate after 2021, while other LIBOR-based rates are scheduled to be discontinued after June 2023. In order to mitigate the impact of a discontinuance on the Company’s and Southwest’s financial condition and results of operations, management will 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 Three Months Ended (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- Defined benefit pension plans: Amortization of prior service cost $ 240 $ (58) $ 182 $ 289 $ (69) $ 220 Amortization of net actuarial (gain)/loss 11,148 (2,676) 8,472 9,457 (2,270) 7,187 Regulatory adjustment (9,575) 2,298 (7,277) (8,395) 2,015 (6,380) Pension plans other comprehensive income (loss) 1,813 (436) 1,377 1,351 (324) 1,027 FSIRS (designated hedging activities): Amounts reclassified into net income 544 (130) 414 836 (201) 635 FSIRS other comprehensive income (loss) 544 (130) 414 836 (201) 635 Total other comprehensive income (loss) - Southwest Gas Corporation 2,357 (566) 1,791 2,187 (525) 1,662 Foreign currency translation adjustments: Translation adjustments 909 — 909 1,794 — 1,794 Foreign currency other comprehensive income (loss) 909 — 909 1,794 — 1,794 Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. $ 3,266 $ (566) $ 2,700 $ 3,981 $ (525) $ 3,456 Six Months Ended Six Months Ended (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- Defined benefit pension plans: Amortization of prior service cost $ 480 $ (116) $ 364 $ 578 $ (138) $ 440 Amortization of net actuarial (gain)/loss 22,297 (5,351) 16,946 18,915 (4,540) 14,375 Regulatory adjustment (19,150) 4,596 (14,554) (16,790) 4,030 (12,760) Pension plans other comprehensive income (loss) 3,627 (871) 2,756 2,703 (648) 2,055 FSIRS (designated hedging activities): Amounts reclassified into net income 1,088 (261) 827 1,673 (402) 1,271 FSIRS other comprehensive income (loss) 1,088 (261) 827 1,673 (402) 1,271 Total other comprehensive income (loss) - Southwest Gas Corporation 4,715 (1,132) 3,583 4,376 (1,050) 3,326 Foreign currency translation adjustments: Translation adjustments 1,732 — 1,732 (2,211) — (2,211) Foreign currency other comprehensive income (loss) 1,732 — 1,732 (2,211) — (2,211) Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. $ 6,447 $ (1,132) $ 5,315 $ 2,165 $ (1,050) $ 1,115 Twelve Months Ended Twelve Months Ended (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- Defined benefit pension plans: Net actuarial gain/(loss) $ (57,539) $ 13,809 $ (43,730) $ (71,087) $ 17,061 $ (54,026) Amortization of prior service cost 1,057 (255) 802 1,214 (291) 923 Amortization of net actuarial (gain)/loss 41,212 (9,890) 31,322 30,603 (7,345) 23,258 Prior service cost — — — (1,878) 452 (1,426) Regulatory adjustment 5,075 (1,219) 3,856 30,849 (7,404) 23,445 Pension plans other comprehensive income (loss) (10,195) 2,445 (7,750) (10,299) 2,473 (7,826) FSIRS (designated hedging activities): Amounts reclassified into net income 2,662 (639) 2,023 3,345 (804) 2,541 FSIRS other comprehensive income (loss) 2,662 (639) 2,023 3,345 (804) 2,541 Total other comprehensive income (loss) - Southwest Gas Corporation (7,533) 1,806 (5,727) (6,954) 1,669 (5,285) Foreign currency translation adjustments: Translation adjustments 5,656 — 5,656 (1,751) — (1,751) Foreign currency other comprehensive income (loss) 5,656 — 5,656 (1,751) — (1,751) Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. $ (1,877) $ 1,806 $ (71) $ (8,705) $ 1,669 $ (7,036) (1) Tax amounts are calculated using a 24% rate. The Company has elected to indefinitely reinvest, in Canada, the earnings of Centuri’s Canadian subsidiaries, thus precluding deferred taxes on such earnings. As a result of this assertion, and no repatriation of earnings anticipated, the Company is not recognizing a tax effect or presenting a tax expense or benefit for currency translation adjustments reported in Other comprehensive income (loss). Approximately $1.2 million of realized losses (net of tax) related to the remaining balance of Southwest’s previously settled forward-starting interest rate swap (“FSIRS”), included in AOCI at June 30, 2021, will be reclassified into interest expense within the next 9 months (at which time the FSIRS will be fully amortized) 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, 2020 $ (77,720) $ 18,653 $ (59,067) $ (2,719) $ 651 $ (2,068) $ 132 $ — $ 132 $ (61,003) Translation adjustments — — — — — — 1,732 — 1,732 1,732 Other comprehensive income (loss) before reclassifications — — — — — — 1,732 — 1,732 1,732 FSIRS amount reclassified from AOCI (1) — — — 1,088 (261) 827 — — — 827 Amortization of prior service cost (2) 480 (116) 364 — — — — — — 364 Amortization of net actuarial loss (2) 22,297 (5,351) 16,946 — — — — — — 16,946 Regulatory adjustment (3) (19,150) 4,596 (14,554) — — — — — — (14,554) Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc. 3,627 (871) 2,756 1,088 (261) 827 1,732 — 1,732 5,315 Ending Balance AOCI June 30, 2021 $ (74,093) $ 17,782 $ (56,311) $ (1,631) $ 390 $ (1,241) $ 1,864 $ — $ 1,864 $ (55,688) (1) The FSIRS reclassification amount is 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, 2020 $ (77,720) $ 18,653 $ (59,067) $ (2,719) $ 651 $ (2,068) $ (61,135) FSIRS amount reclassified from AOCI (5) — — — 1,088 (261) 827 827 Amortization of prior service cost (6) 480 (116) 364 — — — 364 Amortization of net actuarial loss (6) 22,297 (5,351) 16,946 — — — 16,946 Regulatory adjustment (7) (19,150) 4,596 (14,554) — — — (14,554) Net current period other comprehensive income attributable to Southwest Gas Corporation 3,627 (871) 2,756 1,088 (261) 827 3,583 Ending Balance AOCI June 30, 2021 $ (74,093) $ 17,782 $ (56,311) $ (1,631) $ 390 $ (1,241) $ (57,552) (5) The FSIRS reclassification amount is 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) June 30, 2021 December 31, 2020 Net actuarial loss $ (480,486) $ (502,783) Prior service cost (2,007) (2,487) Less: amount recognized in regulatory assets 408,400 427,550 Recognized in AOCI $ (74,093) $ (77,720) |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
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) June 30, 2021 December 31, 2020 Centuri accounts receivable for services provided to Southwest $ 10,356 $ 13,956 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 June 30, 2021 Revenues from external customers $ 292,796 $ 504,941 $ — $ 797,737 Intersegment revenues — 23,684 — 23,684 Total $ 292,796 $ 528,625 $ — $ 821,421 Segment net income (loss) $ 11,413 $ 15,116 $ (1,410) $ 25,119 Three Months Ended June 30, 2020 Revenues from external customers $ 262,434 $ 457,890 $ — $ 720,324 Intersegment revenues — 36,923 — 36,923 Total $ 262,434 $ 494,813 $ — $ 757,247 Segment net income (loss) $ 11,942 $ 26,267 $ (244) $ 37,965 (Thousands of dollars) Natural Gas Utility Infrastructure Other Total Six Months Ended June 30, 2021 Revenues from external customers $ 814,728 $ 844,713 $ — $ 1,659,441 Intersegment revenues — 47,887 — 47,887 Total $ 814,728 $ 892,600 $ — $ 1,707,328 Segment net income (loss) $ 130,128 $ 14,257 $ (1,973) $ 142,412 Six Months Ended June 30, 2020 Revenues from external customers $ 765,261 $ 758,181 $ — $ 1,523,442 Intersegment revenues — 70,125 — 70,125 Total $ 765,261 $ 828,306 $ — $ 1,593,567 Segment net income (loss) $ 95,541 $ 16,063 $ (1,097) $ 110,507 (Thousands of dollars) Natural Gas Utility Infrastructure Other Total Twelve Months Ended June 30, 2021 Revenues from external customers $ 1,400,052 $ 1,899,961 $ — $ 3,300,013 Intersegment revenues — 112,621 — 112,621 Total $ 1,400,052 $ 2,012,582 $ — $ 3,412,634 Segment net income (loss) $ 193,705 $ 73,056 $ (2,532) $ 264,229 Twelve Months Ended June 30, 2020 Revenues from external customers $ 1,354,812 $ 1,671,026 $ — $ 3,025,838 Intersegment revenues — 141,096 — 141,096 Total $ 1,354,812 $ 1,812,122 $ — $ 3,166,934 Segment net income (loss) $ 151,954 $ 57,581 $ (1,957) $ 207,578 |
Background, Organization, and_2
Background, Organization, and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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”). 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. In association with the novel Coronavirus (“COVID-19”) pandemic environment, utility operations, and to a large extent, utility infrastructure services, have been deemed “essential services.” 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 notes thereto included in the 2020 Annual Report to Stockholders, which is incorporated by reference into the 2020 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. The Company primarily used quoted market prices and other observable market pricing information in valuing cash and cash equivalents, 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. |
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 an insignificant amount of money market fund investments for each entity at June 30, 2021 and December 31, 2020, respectively, 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 include customer advances applied as contributions toward utility construction activity, and capital expenditures that were not paid as of period-end reporting dates, but rather included in accounts payable. Typical activities that represent aspects of both non-cash investing and non-cash financing activities relate to right-of-use assets obtained in exchange for lease liabilities (including, at times, lease terminations and modifications). Amounts related to these collective 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. Due to COVID-19, Southwest continued the moratorium initiated in March 2020 on disconnection of natural gas service for non-payment; however, Southwest expects to lift the moratorium in the second half of 2021. While the moratorium on disconnections continues, Southwest began assessing late fees on past-due balances for Arizona and Nevada in April 2021, and expects to recommence late fee assessments in the California jurisdiction in the latter half of 2021. 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 impact of COVID-19. The allowance for uncollectible accounts receivable balances as of June 30, 2021 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 on disconnections is lifted. |
Deferred Purchased Gas Costs | Deferred Purchased Gas Costs . The various regulatory commissions have established procedures to enable Southwest to adjust its billing rates for changes in the cost of natural gas purchased. The difference between the current cost of gas purchased and the cost of gas recovered in billed rates is deferred. Generally, these deferred amounts are recovered or refunded within one year. In mid-February 2021, the central U.S. (from south Texas to North Dakota and the eastern Rocky Mountains) experienced extreme cold temperatures, which increased natural gas demand and caused supply issues due to wellhead freeze-offs, power outages, or other adverse operating conditions upstream of Southwest’s distribution systems. These conditions caused daily natural gas prices to reach unprecedented levels. During this time, Southwest secured natural gas supplies, albeit at substantially higher prices, maintaining service to its customers. The incremental cost for these supplies was approximately $250 million, funded using a 364-day $250 million Bank Term Loan executed in March 2021 (see Note 5 – Debt) . The incremental gas costs are expected to be collected from customers through the purchased gas adjustment (“PGA”) mechanisms. Following the extreme weather event, an interstate transmission pipeline company billed Southwest, in addition to customary transmission costs, $65 million (later reduced to approximately $55 million) for pipeline imbalance charges, allegedly incurred during the period of the pipeline’s critical operation condition. However, Southwest has formally disputed these imbalance charges, in addition to interest on that amount, believing that no amounts were due to the pipeline. In June 2021, the interstate transmission pipeline company requested approval from the Federal Energy Regulatory Commission (the “FERC”) to waive these imbalance charges and interest, affirming that they had the authority to elect the option to waive the underlying charges based on their tariff, but were seeking approval by the FERC for purposes of transparency and regulatory certainty. Approval of this request is pending. Consequently, Southwest has not recognized this charge. Pipeline transmission costs, including periodic imbalance charges, are components of the cost of gas recovered from customers through the PGA and similar mechanisms. |
Prepaid and other current assets | Prepaid and other current assets. Prepaid and other current assets includes gas pipe materials and operating supplies of $51 million at June 30, 2021 and $50 million at December 31, 2020 (carried at weighted average cost). |
Goodwill | Goodwill. Goodwill is assessed as of October 1 st |
Other current liabilities | 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 the Company includes $35.2 million and $32.6 million of dividends declared as of June 30, 2021 and December 31, 2020, respectively. |
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 2021: In December 2019, the Financial Accounting Standards Board (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 Company and Southwest adopted the update in the first quarter of 2021, the impact of which was not material to the condensed consolidated financial statements of the Company or Southwest. Recently issued accounting pronouncements that will be effective after 2021: 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 such reform. The update applies only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another 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 what impacts, if any, 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) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Property and Investments | Other property and investments on the Condensed Consolidated Balance Sheets includes: (Thousands of dollars) June 30, 2021 December 31, 2020 Southwest Gas Corporation: Net cash surrender value of COLI policies $ 146,762 $ 140,874 Other property 2,735 2,737 Total Southwest Gas Corporation 149,497 143,611 Centuri property, equipment, and intangibles 1,139,073 1,089,414 Centuri accumulated provision for depreciation and amortization (457,698) (422,741) Other property and investments 29,829 23,961 Total Southwest Gas Holdings, Inc. $ 860,701 $ 834,245 |
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, 2020 $ 10,095 $ 335,089 $ 345,184 Foreign currency translation adjustment — 2,989 2,989 June 30, 2021 $ 10,095 $ 338,078 $ 348,173 |
Schedule of Significant Items Included in 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 June 30, Six Months Ended Twelve Months Ended (Thousands of dollars) 2021 2020 2021 2020 2021 2020 Southwest Gas Corporation - natural gas operations segment: Change in COLI policies $ 3,100 $ 12,000 $ 5,800 $ (3,500) $ 18,500 $ 2,900 Interest income 1,231 414 1,947 1,802 4,160 4,739 Equity AFUDC (981) 1,120 — 2,181 2,543 4,375 Other components of net periodic benefit cost (3,505) (5,006) (7,010) (10,011) (17,021) (17,540) Miscellaneous income and (expense) (1,010) (690) (1,352) (3,170) (2,689) (5,193) Southwest Gas Corporation - total other income (deductions) (1,165) 7,838 (615) (12,698) 5,493 (10,719) Utility infrastructure services segment: Foreign transaction gain (loss) (9) (6) (12) (16) (12) (22) Miscellaneous income and (expense) (137) 93 (236) (139) (288) (65) Centuri - total other income (deductions) (146) 87 (248) (155) (300) (87) Corporate and administrative — — — 8 — 61 Consolidated Southwest Gas Holdings, Inc. - total other income (deductions) $ (1,311) $ 7,925 $ (863) $ (12,845) $ 5,193 $ (10,745) |
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, 2020 $ 165,716 Net income attributable to redeemable noncontrolling interest 2,907 Redemption value adjustment 31,906 Balance, June 30, 2021 $ 200,529 |
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 Six Months Ended Twelve Months Ended (In thousands) 2021 2020 2021 2020 2021 2020 Weighted average basic shares 58,607 55,462 58,106 55,386 57,348 55,105 Effect of dilutive securities: Management Incentive Plan shares — — — — — 6 Restricted stock units (1) 103 70 91 62 92 60 Weighted average diluted shares 58,710 55,532 58,197 55,448 57,440 55,171 (1) The number of securities includ ed 95,000 and 63,000 performance shares during the three months ending June 30, 2021 and 2020, 85,000 and 57,000 performance shares during the six months ending June 30, 2021 and 2020, and 83,000 and 51,000 performance shares during the twelve months ending June 30, 2021 and 2020, 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) | 6 Months Ended |
Jun. 30, 2021 | |
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 service cost 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 June 30, Three Months Six Months Twelve Months 2021 2020 2021 2020 2021 2020 (Thousands of dollars) Service cost $ 10,290 $ 8,575 $ 20,580 $ 17,149 $ 37,730 $ 30,081 Interest cost 10,108 11,389 20,216 22,777 42,994 47,280 Expected return on plan assets (18,088) (16,324) (36,176) (32,648) (68,824) (62,770) Amortization of net actuarial loss 10,489 9,006 20,978 18,013 38,990 29,191 Net periodic benefit cost $ 12,799 $ 12,646 $ 25,598 $ 25,291 $ 50,890 $ 43,782 SERP June 30, Three Months Six Months Twelve Months 2021 2020 2021 2020 2021 2020 (Thousands of dollars) Service cost $ 132 $ 97 $ 263 $ 195 $ 457 $ 328 Interest cost 358 402 716 803 1,517 1,683 Amortization of net actuarial loss 660 451 1,320 902 2,223 1,412 Net periodic benefit cost $ 1,150 $ 950 $ 2,299 $ 1,900 $ 4,197 $ 3,423 PBOP June 30, Three Months Six Months Twelve Months 2021 2020 2021 2020 2021 2020 (Thousands of dollars) Service cost $ 423 $ 395 $ 846 $ 791 $ 1,636 $ 1,429 Interest cost 548 645 1,096 1,290 2,388 2,812 Expected return on plan assets (810) (852) (1,620) (1,704) (3,324) (3,282) Amortization of prior service costs 240 289 480 578 1,057 1,214 Net periodic benefit cost $ 401 $ 477 $ 802 $ 955 $ 1,757 $ 2,173 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended Twelve Months Ended June 30, (Thousands of dollars) 2021 2020 2021 2020 2021 2020 Residential $ 193,322 $ 181,298 $ 596,465 $ 559,853 $ 995,132 $ 950,540 Small commercial 56,093 41,455 137,491 123,918 235,114 233,241 Large commercial 13,158 9,979 25,831 22,646 47,818 46,496 Industrial/other 6,974 6,499 20,744 13,201 33,785 23,384 Transportation 21,797 19,835 46,333 44,241 90,307 89,904 Revenue from contracts with customers 291,344 259,066 826,864 763,859 1,402,156 1,343,565 Alternative revenue program revenues (deferrals) (1,531) 4,111 (17,904) 346 (6,110) 6,387 Other revenues (1) 2,983 (743) 5,768 1,056 4,006 4,860 Total Gas operating revenues $ 292,796 $ 262,434 $ 814,728 $ 765,261 $ 1,400,052 $ 1,354,812 (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 customer rates expected to be returned to customers in future periods. Late fees and certain other fees were reduced for the six- and twelve-month periods ended June 30, 2021 (and in all comparative periods of 2020) due to a moratorium on late fees and disconnection for nonpayment during the COVID-19 pandemic. 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 Six Months Ended Twelve Months Ended June 30, (Thousands of dollars) 2021 2020 2021 2020 2021 2020 Service Types: Gas infrastructure services $ 346,877 $ 330,157 $ 568,714 $ 547,866 $ 1,282,008 $ 1,265,131 Electric power infrastructure services 97,644 95,286 191,605 167,606 435,825 301,656 Other 84,104 69,370 132,281 112,834 294,749 245,335 Total Utility infrastructure services revenues $ 528,625 $ 494,813 $ 892,600 $ 828,306 $ 2,012,582 $ 1,812,122 Three Months Ended Six Months Ended Twelve Months Ended June 30, (Thousands of dollars) 2021 2020 2021 2020 2021 2020 Contract Types: Master services agreement $ 398,650 $ 375,502 $ 692,330 $ 639,047 $ 1,543,292 $ 1,410,909 Bid contract 129,975 119,311 200,270 189,259 469,290 401,213 Total Utility infrastructure services revenues $ 528,625 $ 494,813 $ 892,600 $ 828,306 $ 2,012,582 $ 1,812,122 Unit price contracts $ 361,926 $ 365,253 $ 596,375 $ 608,389 $ 1,344,626 $ 1,397,473 Fixed price contracts 50,455 36,011 85,049 63,556 179,194 133,515 Time and materials contracts 116,244 93,549 211,176 156,361 488,762 281,134 Total Utility infrastructure services revenues $ 528,625 $ 494,813 $ 892,600 $ 828,306 $ 2,012,582 $ 1,812,122 |
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; the table also includes amounts billed in excess of revenue earned on contracts (contract liability), which are included in Other current liabilities as of June 30, 2021 and December 31, 2020 on the Company’s Condensed Consolidated Balance Sheets: (Thousands of dollars) June 30, 2021 December 31, 2020 Contracts receivable, net $ 263,589 $ 278,316 Revenue earned on contracts in progress in excess of billings 129,954 96,996 Amounts billed in excess of revenue earned on contracts 9,077 4,507 |
Schedule of Utility Infrastructure Services Contracts Receivable | Utility infrastructure services contracts receivable consists of the following: (Thousands of dollars) June 30, 2021 December 31, 2020 Billed on completed contracts and contracts in progress $ 260,755 $ 273,778 Other receivables 5,285 6,692 Contracts receivable, gross 266,040 280,470 Allowance for doubtful accounts (2,451) (2,154) Contracts receivable, net $ 263,589 $ 278,316 |
Common Stock (Tables)
Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Common Stock Activity | The following table provides the activity under the Equity Shelf Program for the quarter and life-to-date ended June 30, 2021: Gross proceeds $ 70,360,412 Less: agent commissions (703,604) Net proceeds $ 69,656,808 Number of shares sold 1,050,597 Weighted average price per share $ 66.97 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Amounts and Estimated Fair Values of Long-Term Debt | June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair (Thousands of dollars) Southwest Gas Corporation: Debentures: Notes, 6.1%, due 2041 $ 125,000 $ 166,986 $ 125,000 $ 174,858 Notes, 3.875%, due 2022 250,000 254,203 250,000 258,825 Notes, 4.875%, due 2043 250,000 302,473 250,000 317,190 Notes, 3.8%, due 2046 300,000 325,005 300,000 347,046 Notes, 3.7%, due 2028 300,000 332,154 300,000 344,553 Notes, 4.15%, due 2049 300,000 341,970 300,000 370,278 Notes, 2.2%, due 2030 450,000 448,317 450,000 474,552 8% Series, due 2026 75,000 96,504 75,000 99,723 Medium-term notes, 7.78% series, due 2022 25,000 26,080 25,000 26,663 Medium-term notes, 7.92% series, due 2027 25,000 32,472 25,000 33,802 Medium-term notes, 6.76% series, due 2027 7,500 9,245 7,500 9,613 Unamortized discount and debt issuance costs (17,319) (17,822) 2,090,181 2,089,678 Revolving credit facility and commercial paper 150,000 150,000 150,000 150,000 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 (1,349) (1,472) 198,651 198,528 Less: current maturities (275,000) — Long-term debt, less current maturities - Southwest Gas Corporation $ 2,163,832 $ 2,438,206 Centuri: Centuri term loan facility $ 218,823 $ 221,176 $ 226,648 $ 230,824 Unamortized debt issuance costs (675) (820) 218,148 225,828 Centuri secured revolving credit facility 68,807 68,841 26,626 26,645 Centuri other debt obligations 72,454 73,690 81,973 84,246 Less: current maturities (44,417) (40,433) Long-term debt, less current maturities - Centuri $ 314,992 $ 293,994 Consolidated Southwest Gas Holdings, Inc.: Southwest Gas Corporation long-term debt $ 2,438,832 $ 2,438,206 Centuri long-term debt 359,408 334,427 Less: current maturities (319,417) (40,433) Long-term debt, less current maturities - Southwest Gas Holdings, Inc. $ 2,478,823 $ 2,732,200 |
Other Comprehensive Income an_2
Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of 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 Three Months Ended (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- Defined benefit pension plans: Amortization of prior service cost $ 240 $ (58) $ 182 $ 289 $ (69) $ 220 Amortization of net actuarial (gain)/loss 11,148 (2,676) 8,472 9,457 (2,270) 7,187 Regulatory adjustment (9,575) 2,298 (7,277) (8,395) 2,015 (6,380) Pension plans other comprehensive income (loss) 1,813 (436) 1,377 1,351 (324) 1,027 FSIRS (designated hedging activities): Amounts reclassified into net income 544 (130) 414 836 (201) 635 FSIRS other comprehensive income (loss) 544 (130) 414 836 (201) 635 Total other comprehensive income (loss) - Southwest Gas Corporation 2,357 (566) 1,791 2,187 (525) 1,662 Foreign currency translation adjustments: Translation adjustments 909 — 909 1,794 — 1,794 Foreign currency other comprehensive income (loss) 909 — 909 1,794 — 1,794 Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. $ 3,266 $ (566) $ 2,700 $ 3,981 $ (525) $ 3,456 Six Months Ended Six Months Ended (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- Defined benefit pension plans: Amortization of prior service cost $ 480 $ (116) $ 364 $ 578 $ (138) $ 440 Amortization of net actuarial (gain)/loss 22,297 (5,351) 16,946 18,915 (4,540) 14,375 Regulatory adjustment (19,150) 4,596 (14,554) (16,790) 4,030 (12,760) Pension plans other comprehensive income (loss) 3,627 (871) 2,756 2,703 (648) 2,055 FSIRS (designated hedging activities): Amounts reclassified into net income 1,088 (261) 827 1,673 (402) 1,271 FSIRS other comprehensive income (loss) 1,088 (261) 827 1,673 (402) 1,271 Total other comprehensive income (loss) - Southwest Gas Corporation 4,715 (1,132) 3,583 4,376 (1,050) 3,326 Foreign currency translation adjustments: Translation adjustments 1,732 — 1,732 (2,211) — (2,211) Foreign currency other comprehensive income (loss) 1,732 — 1,732 (2,211) — (2,211) Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. $ 6,447 $ (1,132) $ 5,315 $ 2,165 $ (1,050) $ 1,115 Twelve Months Ended Twelve Months Ended (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- Defined benefit pension plans: Net actuarial gain/(loss) $ (57,539) $ 13,809 $ (43,730) $ (71,087) $ 17,061 $ (54,026) Amortization of prior service cost 1,057 (255) 802 1,214 (291) 923 Amortization of net actuarial (gain)/loss 41,212 (9,890) 31,322 30,603 (7,345) 23,258 Prior service cost — — — (1,878) 452 (1,426) Regulatory adjustment 5,075 (1,219) 3,856 30,849 (7,404) 23,445 Pension plans other comprehensive income (loss) (10,195) 2,445 (7,750) (10,299) 2,473 (7,826) FSIRS (designated hedging activities): Amounts reclassified into net income 2,662 (639) 2,023 3,345 (804) 2,541 FSIRS other comprehensive income (loss) 2,662 (639) 2,023 3,345 (804) 2,541 Total other comprehensive income (loss) - Southwest Gas Corporation (7,533) 1,806 (5,727) (6,954) 1,669 (5,285) Foreign currency translation adjustments: Translation adjustments 5,656 — 5,656 (1,751) — (1,751) Foreign currency other comprehensive income (loss) 5,656 — 5,656 (1,751) — (1,751) Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. $ (1,877) $ 1,806 $ (71) $ (8,705) $ 1,669 $ (7,036) (1) Tax amounts are calculated using a 24% rate. The Company has elected to indefinitely reinvest, in Canada, the earnings of Centuri’s Canadian subsidiaries, thus precluding deferred taxes on such earnings. As a result of this assertion, and no repatriation of earnings anticipated, the Company is not recognizing a tax effect or presenting a tax expense or benefit for currency translation adjustments reported in Other comprehensive income (loss). |
Schedule of 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, 2020 $ (77,720) $ 18,653 $ (59,067) $ (2,719) $ 651 $ (2,068) $ 132 $ — $ 132 $ (61,003) Translation adjustments — — — — — — 1,732 — 1,732 1,732 Other comprehensive income (loss) before reclassifications — — — — — — 1,732 — 1,732 1,732 FSIRS amount reclassified from AOCI (1) — — — 1,088 (261) 827 — — — 827 Amortization of prior service cost (2) 480 (116) 364 — — — — — — 364 Amortization of net actuarial loss (2) 22,297 (5,351) 16,946 — — — — — — 16,946 Regulatory adjustment (3) (19,150) 4,596 (14,554) — — — — — — (14,554) Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc. 3,627 (871) 2,756 1,088 (261) 827 1,732 — 1,732 5,315 Ending Balance AOCI June 30, 2021 $ (74,093) $ 17,782 $ (56,311) $ (1,631) $ 390 $ (1,241) $ 1,864 $ — $ 1,864 $ (55,688) (1) The FSIRS reclassification amount is 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, 2020 $ (77,720) $ 18,653 $ (59,067) $ (2,719) $ 651 $ (2,068) $ (61,135) FSIRS amount reclassified from AOCI (5) — — — 1,088 (261) 827 827 Amortization of prior service cost (6) 480 (116) 364 — — — 364 Amortization of net actuarial loss (6) 22,297 (5,351) 16,946 — — — 16,946 Regulatory adjustment (7) (19,150) 4,596 (14,554) — — — (14,554) Net current period other comprehensive income attributable to Southwest Gas Corporation 3,627 (871) 2,756 1,088 (261) 827 3,583 Ending Balance AOCI June 30, 2021 $ (74,093) $ 17,782 $ (56,311) $ (1,631) $ 390 $ (1,241) $ (57,552) (5) The FSIRS reclassification amount is 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. |
Schedule of 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) June 30, 2021 December 31, 2020 Net actuarial loss $ (480,486) $ (502,783) Prior service cost (2,007) (2,487) Less: amount recognized in regulatory assets 408,400 427,550 Recognized in AOCI $ (74,093) $ (77,720) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Accounts Receivable for Services | Accounts receivable for these services, which are not eliminated during consolidation, are presented in the table below: (Thousands of dollars) June 30, 2021 December 31, 2020 Centuri accounts receivable for services provided to Southwest $ 10,356 $ 13,956 |
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 June 30, 2021 Revenues from external customers $ 292,796 $ 504,941 $ — $ 797,737 Intersegment revenues — 23,684 — 23,684 Total $ 292,796 $ 528,625 $ — $ 821,421 Segment net income (loss) $ 11,413 $ 15,116 $ (1,410) $ 25,119 Three Months Ended June 30, 2020 Revenues from external customers $ 262,434 $ 457,890 $ — $ 720,324 Intersegment revenues — 36,923 — 36,923 Total $ 262,434 $ 494,813 $ — $ 757,247 Segment net income (loss) $ 11,942 $ 26,267 $ (244) $ 37,965 (Thousands of dollars) Natural Gas Utility Infrastructure Other Total Six Months Ended June 30, 2021 Revenues from external customers $ 814,728 $ 844,713 $ — $ 1,659,441 Intersegment revenues — 47,887 — 47,887 Total $ 814,728 $ 892,600 $ — $ 1,707,328 Segment net income (loss) $ 130,128 $ 14,257 $ (1,973) $ 142,412 Six Months Ended June 30, 2020 Revenues from external customers $ 765,261 $ 758,181 $ — $ 1,523,442 Intersegment revenues — 70,125 — 70,125 Total $ 765,261 $ 828,306 $ — $ 1,593,567 Segment net income (loss) $ 95,541 $ 16,063 $ (1,097) $ 110,507 (Thousands of dollars) Natural Gas Utility Infrastructure Other Total Twelve Months Ended June 30, 2021 Revenues from external customers $ 1,400,052 $ 1,899,961 $ — $ 3,300,013 Intersegment revenues — 112,621 — 112,621 Total $ 1,400,052 $ 2,012,582 $ — $ 3,412,634 Segment net income (loss) $ 193,705 $ 73,056 $ (2,532) $ 264,229 Twelve Months Ended June 30, 2020 Revenues from external customers $ 1,354,812 $ 1,671,026 $ — $ 3,025,838 Intersegment revenues — 141,096 — 141,096 Total $ 1,354,812 $ 1,812,122 $ — $ 3,166,934 Segment net income (loss) $ 151,954 $ 57,581 $ (1,957) $ 207,578 |
Background, Organization, and_4
Background, Organization, and Summary of Significant Accounting Policies - Narratives (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021USD ($)state | Mar. 31, 2021USD ($) | Feb. 28, 2021USD ($) | Mar. 31, 2021USD ($) | Jun. 30, 2021USD ($)state | May 31, 2021USD ($) | Jun. 30, 2021USD ($)state | Dec. 31, 2020USD ($) | Nov. 30, 2018 | |
Significant Accounting Policies [Line Items] | |||||||||
Number of states in which entity operates | state | 3 | 3 | 3 | ||||||
Accounts receivable, extending period | 1 month | ||||||||
Deferred purchased gas costs, recovered or refunded period | 1 year | ||||||||
Deferred purchased gas costs, estimated incremental costs | $ 250,000,000 | ||||||||
Deferred purchased gas costs, pipeline imbalance charges | $ 65,000,000 | $ 55,000,000 | |||||||
Goodwill impairment | $ 0 | ||||||||
Dividends declared but not yet paid | $ 35,200,000 | $ 35,200,000 | 35,200,000 | $ 32,600,000 | |||||
Redemption value adjustments | 32,000,000 | 31,906,000 | |||||||
Drum Parent, Inc. | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Consideration to acquire business | 855,000,000 | ||||||||
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 | $ 51,000,000 | $ 51,000,000 | $ 51,000,000 | $ 50,000,000 | |||||
Southwest Gas Corporation | $250 Million Term Loan | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Debt instrument, term | 364 days | ||||||||
Debt instrument, face amount | $ 250,000,000 | $ 250,000,000 |
Background, Organization, and_5
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Other Property and Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Other property and investments | $ 29,829 | $ 23,961 |
Total | 860,701 | 834,245 |
Southwest Gas Corporation | ||
Property, Plant and Equipment [Line Items] | ||
Net cash surrender value of COLI policies | 146,762 | 140,874 |
Other property and investments | 2,735 | 2,737 |
Total | 149,497 | 143,611 |
Centuri | ||
Property, Plant and Equipment [Line Items] | ||
Centuri property, equipment, and intangibles | 1,139,073 | 1,089,414 |
Centuri accumulated provision for depreciation and amortization | $ (457,698) | $ (422,741) |
Background, Organization, and_6
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 345,184 |
Foreign currency translation adjustment | 2,989 |
Goodwill, ending balance | 348,173 |
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 | 335,089 |
Foreign currency translation adjustment | 2,989 |
Goodwill, ending balance | $ 338,078 |
Background, Organization, and_7
Background, Organization, and Summary of Significant Accounting Policies - Other Income (Deductions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other income (deductions) | ||||||
Total other income (deductions) | $ (1,311) | $ 7,925 | $ (863) | $ (12,845) | $ 5,193 | $ (10,745) |
Southwest Gas Corporation | ||||||
Other income (deductions) | ||||||
Total other income (deductions) | (1,165) | 7,838 | (615) | (12,698) | 5,493 | (10,719) |
Revenues from external customers | Natural Gas Operations | Southwest Gas Corporation | ||||||
Other income (deductions) | ||||||
Change in COLI policies | 3,100 | 12,000 | 5,800 | (3,500) | 18,500 | 2,900 |
Interest income | 1,231 | 414 | 1,947 | 1,802 | 4,160 | 4,739 |
Equity AFUDC | (981) | 1,120 | 0 | 2,181 | 2,543 | 4,375 |
Other components of net periodic benefit cost | (3,505) | (5,006) | (7,010) | (10,011) | (17,021) | (17,540) |
Miscellaneous income and (expense) | (1,010) | (690) | (1,352) | (3,170) | (2,689) | (5,193) |
Total other income (deductions) | (1,165) | 7,838 | (615) | (12,698) | 5,493 | (10,719) |
Revenues from external customers | Utility Infrastructure Services Segment | Centuri | ||||||
Other income (deductions) | ||||||
Foreign transaction gain (loss) | (9) | (6) | (12) | (16) | (12) | (22) |
Miscellaneous income and (expense) | (137) | 93 | (236) | (139) | (288) | (65) |
Total other income (deductions) | (146) | 87 | (248) | (155) | (300) | (87) |
Corporate and administrative | ||||||
Other income (deductions) | ||||||
Total other income (deductions) | $ 0 | $ 0 | $ 0 | $ 8 | $ 0 | $ 61 |
Background, Organization, and_8
Background, Organization, and Summary of Significant Accounting Policies - Summary of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Movement In Redeemable Noncontrolling Interest [Roll Forward] | ||
Redeemable noncontrolling interest, beginning balance | $ 165,716 | |
Net income attributable to redeemable noncontrolling interest | 2,907 | |
Redemption value adjustment | $ 32,000 | 31,906 |
Redeemable noncontrolling interest, ending balance | $ 200,529 | $ 200,529 |
Background, Organization, and_9
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Weighted average basic shares (in shares) | 58,607 | 55,462 | 58,106 | 55,386 | 57,348 | 55,105 |
Effect of dilutive securities: | ||||||
Management Incentive Plan shares (in shares) | 0 | 0 | 0 | 0 | 0 | 6 |
Restricted stock units (in shares) | 103 | 70 | 91 | 62 | 92 | 60 |
Weighted average diluted shares (in shares) | 58,710 | 55,532 | 58,197 | 55,448 | 57,440 | 55,171 |
Number of performance share units granted (in shares) | 95 | 63 | 85 | 57 | 83 | 51 |
Components of Net Periodic Be_3
Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Qualified Retirement Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | $ 10,290 | $ 8,575 | $ 20,580 | $ 17,149 | $ 37,730 | $ 30,081 |
Interest cost | 10,108 | 11,389 | 20,216 | 22,777 | 42,994 | 47,280 |
Expected return on plan assets | (18,088) | (16,324) | (36,176) | (32,648) | (68,824) | (62,770) |
Amortization of net actuarial loss | 10,489 | 9,006 | 20,978 | 18,013 | 38,990 | 29,191 |
Net periodic benefit cost | 12,799 | 12,646 | 25,598 | 25,291 | 50,890 | 43,782 |
SERP | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 132 | 97 | 263 | 195 | 457 | 328 |
Interest cost | 358 | 402 | 716 | 803 | 1,517 | 1,683 |
Amortization of net actuarial loss | 660 | 451 | 1,320 | 902 | 2,223 | 1,412 |
Net periodic benefit cost | 1,150 | 950 | 2,299 | 1,900 | 4,197 | 3,423 |
PBOP | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 423 | 395 | 846 | 791 | 1,636 | 1,429 |
Interest cost | 548 | 645 | 1,096 | 1,290 | 2,388 | 2,812 |
Expected return on plan assets | (810) | (852) | (1,620) | (1,704) | (3,324) | (3,282) |
Amortization of prior service costs | 240 | 289 | 480 | 578 | 1,057 | 1,214 |
Net periodic benefit cost | $ 401 | $ 477 | $ 802 | $ 955 | $ 1,757 | $ 2,173 |
Revenue - Schedule of Gas Opera
Revenue - Schedule of Gas Operating Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | $ 291,344 | $ 259,066 | $ 826,864 | $ 763,859 | $ 1,402,156 | $ 1,343,565 |
Alternative revenue program revenues (deferrals) | (1,531) | 4,111 | (17,904) | 346 | (6,110) | 6,387 |
Other revenues | 2,983 | (743) | 5,768 | 1,056 | 4,006 | 4,860 |
Total Gas operating revenues | 292,796 | 262,434 | 814,728 | 765,261 | 1,400,052 | 1,354,812 |
Residential | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 193,322 | 181,298 | 596,465 | 559,853 | 995,132 | 950,540 |
Small commercial | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 56,093 | 41,455 | 137,491 | 123,918 | 235,114 | 233,241 |
Large commercial | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 13,158 | 9,979 | 25,831 | 22,646 | 47,818 | 46,496 |
Industrial/other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 6,974 | 6,499 | 20,744 | 13,201 | 33,785 | 23,384 |
Transportation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | $ 21,797 | $ 19,835 | $ 46,333 | $ 44,241 | $ 90,307 | $ 89,904 |
Revenue - Summary of Revenue Di
Revenue - Summary of Revenue Disaggregated by Service Type, and Contract Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | $ 291,344 | $ 259,066 | $ 826,864 | $ 763,859 | $ 1,402,156 | $ 1,343,565 |
Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 528,625 | 494,813 | 892,600 | 828,306 | 2,012,582 | 1,812,122 |
Master services agreement | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 398,650 | 375,502 | 692,330 | 639,047 | 1,543,292 | 1,410,909 |
Bid contract | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 129,975 | 119,311 | 200,270 | 189,259 | 469,290 | 401,213 |
Unit price contracts | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 361,926 | 365,253 | 596,375 | 608,389 | 1,344,626 | 1,397,473 |
Fixed price contracts | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 50,455 | 36,011 | 85,049 | 63,556 | 179,194 | 133,515 |
Time and materials contracts | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 116,244 | 93,549 | 211,176 | 156,361 | 488,762 | 281,134 |
Gas infrastructure services | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 346,877 | 330,157 | 568,714 | 547,866 | 1,282,008 | 1,265,131 |
Electric power infrastructure services | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 97,644 | 95,286 | 191,605 | 167,606 | 435,825 | 301,656 |
Other | Centuri | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | $ 84,104 | $ 69,370 | $ 132,281 | $ 112,834 | $ 294,749 | $ 245,335 |
Revenue - Summary of Informatio
Revenue - Summary of Information about Receivables (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contracts receivable, net | $ 263,589 | $ 278,316 |
Revenue earned on contracts in progress in excess of billings | 129,954 | 96,996 |
Amounts billed in excess of revenue earned on contracts | $ 9,077 | $ 4,507 |
Revenue - Narratives (Details)
Revenue - Narratives (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($)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 | 18 |
Revenue - Revenue Performance O
Revenue - Revenue Performance Obligation (Details) - Centuri - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 $ in Millions | Jun. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Transaction price allocated to unsatisfied performance obligations of contracts | $ 49.1 |
Transaction price allocated to unsatisfied performance obligations of contracts, period | 2 years |
Revenue - Schedule of Utility I
Revenue - Schedule of Utility Infrastructure Services Contracts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Disaggregation of Revenue [Line Items] | ||
Contracts receivable, gross | $ 266,040 | $ 280,470 |
Allowance for doubtful accounts | (2,451) | (2,154) |
Contracts receivable, net | 263,589 | 278,316 |
Billed on completed contracts and contracts in progress | ||
Disaggregation of Revenue [Line Items] | ||
Contracts receivable, gross | 260,755 | 273,778 |
Other receivables | ||
Disaggregation of Revenue [Line Items] | ||
Contracts receivable, gross | $ 5,285 | $ 6,692 |
Common Stock (Details)
Common Stock (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 08, 2021 | |
Class of Stock [Line Items] | ||||||
Net proceeds | $ 121,302,000 | $ 55,498,000 | $ 205,049,000 | $ 110,701,000 | ||
Restricted Stock/Unit Plan, and Management Incentive Plan | ||||||
Class of Stock [Line Items] | ||||||
Common stock issued (in shares) | 47,000 | |||||
Dividend Reinvestment and Stock Purchase Plan | ||||||
Class of Stock [Line Items] | ||||||
Common stock issued (in shares) | 91,000 | |||||
Common stock issued, amount | $ 5,800,000 | |||||
Equity Shelf Program | ||||||
Class of Stock [Line Items] | ||||||
Sale of stock, amount of common stock offered for sale (up to) | $ 429,639,588 | $ 429,639,588 | $ 429,639,588 | $ 500,000,000 | ||
Gross proceeds | 70,360,412 | |||||
Less: agent commissions | (703,604) | |||||
Net proceeds | $ 69,656,808 | |||||
Number of shares sold (in shares) | 1,050,597 | |||||
Weighted average price per share (in USD per share) | $ 66.97 |
Debt - Schedule of Carrying Amo
Debt - Schedule of Carrying Amounts and Estimated Fair Values of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Less: current maturities | $ (319,417) | $ (40,433) |
Long-term debt, less current maturities | 2,478,823 | 2,732,200 |
Long-term Debt, Current and Noncurrent Abstract | ||
Less: current maturities | (319,417) | (40,433) |
Long-term debt, less current maturities | 2,478,823 | 2,732,200 |
Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Less: current maturities | (275,000) | 0 |
Long-term debt, less current maturities | 2,163,832 | 2,438,206 |
Long-term Debt, Current and Noncurrent Abstract | ||
Less: current maturities | (275,000) | 0 |
Long-term debt, less current maturities | $ 2,163,832 | 2,438,206 |
Debentures | Notes, 6.1%, due 2041 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 6.10% | |
Debentures | Notes, 3.875%, due 2022 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.875% | |
Debentures | Notes, 4.875%, due 2043 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4.875% | |
Debentures | Notes, 3.8%, due 2046 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.80% | |
Debentures | Notes, 3.7%, due 2028 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.70% | |
Debentures | Notes, 4.15%, due 2049 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4.15% | |
Debentures | Notes, 2.2%, due 2030 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 2.20% | |
Debentures | 8% Series, due 2026 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 8.00% | |
Debentures | Medium-term notes, 7.78% series, due 2022 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 7.78% | |
Debentures | Medium-term notes, 7.92% series, due 2027 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 7.92% | |
Debentures | Medium-term notes, 6.76% series, due 2027 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 6.76% | |
Carrying Amount | ||
Debt Instrument [Line Items] | ||
Less: current maturities | $ (319,417) | (40,433) |
Long-term debt, less current maturities | 2,478,823 | 2,732,200 |
Long-term Debt, Current and Noncurrent Abstract | ||
Less: current maturities | (319,417) | (40,433) |
Long-term debt, less current maturities | 2,478,823 | 2,732,200 |
Carrying Amount | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Less: current maturities | (275,000) | 0 |
Long-term debt, less current maturities | 2,163,832 | 2,438,206 |
Long-term Debt, Current and Noncurrent Abstract | ||
Less: current maturities | (275,000) | 0 |
Long-term debt, less current maturities | 2,163,832 | 2,438,206 |
Long-term debt | 2,438,832 | 2,438,206 |
Carrying Amount | Centuri | ||
Debt Instrument [Line Items] | ||
Less: current maturities | (44,417) | (40,433) |
Long-term debt, less current maturities | 314,992 | 293,994 |
Unamortized debt issuance costs | (675) | (820) |
Long-term Debt, Current and Noncurrent Abstract | ||
Less: current maturities | (44,417) | (40,433) |
Long-term debt, less current maturities | 314,992 | 293,994 |
Long-term debt | 359,408 | 334,427 |
Centuri secured revolving credit facility | 218,148 | 225,828 |
Carrying Amount | Centuri secured revolving credit facility | Centuri | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Centuri secured revolving credit facility | 68,807 | 26,626 |
Carrying Amount | Centuri term loan facility | Centuri | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Centuri secured revolving credit facility | 218,823 | 226,648 |
Carrying Amount | Centuri other debt obligations | Centuri | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Centuri other debt obligations | 72,454 | 81,973 |
Carrying Amount | Debentures | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable | 2,090,181 | 2,089,678 |
Unamortized discount and debt issuance costs | (17,319) | (17,822) |
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 | 450,000 |
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 | 150,000 | 150,000 |
Carrying Amount | Industrial development revenue bonds | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | (1,349) | (1,472) |
Unsecured debt | 198,651 | 198,528 |
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 |
Fair Value | Centuri secured revolving credit facility | Centuri | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Centuri secured revolving credit facility | 68,841 | 26,645 |
Fair Value | Centuri term loan facility | Centuri | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Centuri secured revolving credit facility | 221,176 | 230,824 |
Fair Value | Centuri other debt obligations | Centuri | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Centuri other debt obligations | 73,690 | 84,246 |
Fair Value | Debentures | Notes, 6.1%, due 2041 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 166,986 | 174,858 |
Fair Value | Debentures | Notes, 3.875%, due 2022 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 254,203 | 258,825 |
Fair Value | Debentures | Notes, 4.875%, due 2043 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 302,473 | 317,190 |
Fair Value | Debentures | Notes, 3.8%, due 2046 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 325,005 | 347,046 |
Fair Value | Debentures | Notes, 3.7%, due 2028 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 332,154 | 344,553 |
Fair Value | Debentures | Notes, 4.15%, due 2049 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 341,970 | 370,278 |
Fair Value | Debentures | Notes, 2.2%, due 2030 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 448,317 | 474,552 |
Fair Value | Debentures | 8% Series, due 2026 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 96,504 | 99,723 |
Fair Value | Debentures | Medium-term notes, 7.78% series, due 2022 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 26,080 | 26,663 |
Fair Value | Debentures | Medium-term notes, 7.92% series, due 2027 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 32,472 | 33,802 |
Fair Value | Debentures | Medium-term notes, 6.76% series, due 2027 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 9,245 | 9,613 |
Fair Value | Debentures | Revolving credit facility and commercial paper | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Line of credit facility, fair value | 150,000 | 150,000 |
Fair Value | Industrial development revenue bonds | Tax-exempt Series A, due 2028 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Unsecured debt | 50,000 | 50,000 |
Fair Value | Industrial development revenue bonds | 2003 Series A, due 2038 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Unsecured debt | 50,000 | 50,000 |
Fair 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 |
Fair 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 - Narratives (Details)
Debt - Narratives (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Current maturities of long-term debt | $ 319,417,000 | $ 40,433,000 | |
Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Current maturities of long-term debt | $ 275,000,000 | $ 0 | |
Southwest Gas Corporation | $250 Million Term Loan | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 250,000,000 | ||
Debt covenant, ratio of funded debt to total capitalization | 0.70 | ||
Effective interest rate (in percent) | 0.75% | ||
Southwest Gas Corporation | Southwest Gas Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit designated as long term debt | $ 150,000,000 | ||
Line of credit designated for working capital purposes | 250,000,000 | ||
Long-term debt | 150,000,000 | ||
Current maturities of long-term debt | 41,000,000 | ||
Southwest Gas Corporation | Commercial Paper Program | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | 50,000,000 | ||
Borrowings outstanding under facility | $ 50,000,000 | ||
Southwest Gas Corporation | LIBOR | Minimum | $250 Million Term Loan | |||
Debt Instrument [Line Items] | |||
Applicable margin | 0.55% | ||
Southwest Gas Corporation | LIBOR | Maximum | $250 Million Term Loan | |||
Debt Instrument [Line Items] | |||
Applicable margin | 1.00% | ||
Southwest Gas Corporation | LIBOR | Southwest Gas Credit Facility | |||
Debt Instrument [Line Items] | |||
Applicable margin | 1.00% | ||
Southwest Gas Corporation | Alternative base rate | $250 Million Term Loan | |||
Debt Instrument [Line Items] | |||
Applicable margin | 0.00% | ||
Southwest Gas Corporation | Alternative base rate | Southwest Gas Credit Facility | |||
Debt Instrument [Line Items] | |||
Applicable margin | 0.00% | ||
Centuri | Secured Revolving Credit Facility and Term Loan | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | $ 590,000,000 | ||
Borrowings outstanding under facility | 288,000,000 | ||
Debt secured by assets | 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 | ||
$400 Million Credit Facility | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | 400,000,000 | ||
$100 Million Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | 100,000,000 | ||
Borrowings outstanding under facility | $ 27,000,000 |
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 | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), before tax | $ 3,266 | $ 3,981 | $ 6,447 | $ 2,165 | $ (1,877) | $ (8,705) |
Other comprehensive income (loss), tax | (566) | (525) | (1,132) | (1,050) | 1,806 | 1,669 |
Total other comprehensive income (loss), net of tax | 2,700 | 3,456 | 5,315 | $ 1,115 | (71) | (7,036) |
Other comprehensive income (loss) before reclassifications, net of tax | $ 1,732 | |||||
Effective income tax rate | 24.00% | 24.00% | ||||
Southwest Gas Corporation | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), before tax | 2,357 | 2,187 | $ 4,715 | $ 4,376 | (7,533) | (6,954) |
Other comprehensive income (loss), tax | (566) | (525) | (1,132) | (1,050) | 1,806 | 1,669 |
Total other comprehensive income (loss), net of tax | 1,791 | 1,662 | 3,583 | 3,326 | (5,727) | (5,285) |
Amortization of prior service cost | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Reclassification from AOCI, before Tax | 240 | 289 | 480 | 578 | 1,057 | 1,214 |
Reclassification from AOCI, tax | (58) | (69) | (116) | (138) | (255) | (291) |
Reclassification from AOCI, net of tax | 182 | 220 | 364 | 440 | 802 | 923 |
Other comprehensive income (loss), before tax | 480 | |||||
Other comprehensive income (loss), tax | (116) | |||||
Total other comprehensive income (loss), net of tax | 364 | |||||
Amortization of prior service cost | Southwest Gas Corporation | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), before tax | 480 | |||||
Other comprehensive income (loss), tax | (116) | |||||
Total other comprehensive income (loss), net of tax | 364 | |||||
Amortization of net actuarial (gain)/loss | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Reclassification from AOCI, before Tax | 11,148 | 9,457 | 22,297 | 18,915 | 41,212 | 30,603 |
Reclassification from AOCI, tax | (2,676) | (2,270) | (5,351) | (4,540) | (9,890) | (7,345) |
Reclassification from AOCI, net of tax | 8,472 | 7,187 | 16,946 | 14,375 | 31,322 | 23,258 |
Other comprehensive income (loss), before tax | 22,297 | |||||
Other comprehensive income (loss), tax | (5,351) | |||||
Total other comprehensive income (loss), net of tax | 16,946 | |||||
Other comprehensive income (loss) before reclassifications, before tax | (57,539) | (71,087) | ||||
Other comprehensive income (loss) before reclassifications, tax | 13,809 | 17,061 | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (43,730) | (54,026) | ||||
Amortization of net actuarial (gain)/loss | Southwest Gas Corporation | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), before tax | 22,297 | |||||
Other comprehensive income (loss), tax | (5,351) | |||||
Total other comprehensive income (loss), net of tax | 16,946 | |||||
Regulatory adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Reclassification from AOCI, before Tax | (9,575) | (8,395) | (19,150) | (16,790) | 5,075 | 30,849 |
Reclassification from AOCI, tax | 2,298 | 2,015 | 4,596 | 4,030 | (1,219) | (7,404) |
Reclassification from AOCI, net of tax | (7,277) | (6,380) | (14,554) | (12,760) | 3,856 | 23,445 |
Other comprehensive income (loss), before tax | (19,150) | |||||
Other comprehensive income (loss), tax | 4,596 | |||||
Total other comprehensive income (loss), net of tax | (14,554) | |||||
Regulatory adjustment | Southwest Gas Corporation | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), before tax | (19,150) | |||||
Other comprehensive income (loss), tax | 4,596 | |||||
Total other comprehensive income (loss), net of tax | (14,554) | |||||
Prior service cost | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications, before tax | 0 | (1,878) | ||||
Other comprehensive income (loss) before reclassifications, tax | 0 | 452 | ||||
Other comprehensive income (loss) before reclassifications, net of tax | 0 | (1,426) | ||||
Pension plans other comprehensive income (loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), before tax | 1,813 | 1,351 | 3,627 | 2,703 | (10,195) | (10,299) |
Other comprehensive income (loss), tax | (436) | (324) | (871) | (648) | 2,445 | 2,473 |
Total other comprehensive income (loss), net of tax | 1,377 | 1,027 | 2,756 | 2,055 | (7,750) | (7,826) |
Pension plans other comprehensive income (loss) | Southwest Gas Corporation | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), before tax | 3,627 | |||||
Other comprehensive income (loss), tax | (871) | |||||
Total other comprehensive income (loss), net of tax | 2,756 | |||||
FSIRS | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Reclassification from AOCI, before Tax | 544 | 836 | 1,088 | 1,673 | 2,662 | 3,345 |
Reclassification from AOCI, tax | (130) | (201) | (261) | (402) | (639) | (804) |
Reclassification from AOCI, net of tax | 414 | 635 | 827 | 1,271 | 2,023 | 2,541 |
Other comprehensive income (loss), before tax | 544 | 836 | 1,088 | 1,673 | 2,662 | 3,345 |
Other comprehensive income (loss), tax | (130) | (201) | (261) | (402) | (639) | (804) |
Total other comprehensive income (loss), net of tax | 414 | 635 | 827 | 1,271 | 2,023 | 2,541 |
FSIRS | Southwest Gas Corporation | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Reclassification from AOCI, before Tax | 1,088 | |||||
Reclassification from AOCI, tax | (261) | |||||
Reclassification from AOCI, net of tax | 827 | |||||
Other comprehensive income (loss), before tax | 1,088 | |||||
Other comprehensive income (loss), tax | (261) | |||||
Total other comprehensive income (loss), net of tax | 827 | |||||
Foreign currency items | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications, before tax | 909 | 1,794 | 1,732 | (2,211) | 5,656 | (1,751) |
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | $ 909 | $ 1,794 | $ 1,732 | $ (2,211) | $ 5,656 | $ (1,751) |
Other Comprehensive Income an_4
Other Comprehensive Income and Accumulated Other Comprehensive Income - Additional Information (Details) $ in Millions | Jun. 30, 2021USD ($) |
Equity [Abstract] | |
Amount of FSIRS existing AOCI losses expected to reclassified income in next twelve months | $ 1.2 |
Other Comprehensive Income an_5
Other Comprehensive Income and Accumulated Other Comprehensive Income - AOCI Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance, attributable to parent | $ 2,674,953 | |||||
Other comprehensive income (loss) before reclassifications, net of tax | 1,732 | |||||
Other comprehensive income (loss), before tax | $ 3,266 | $ 3,981 | 6,447 | $ 2,165 | $ (1,877) | $ (8,705) |
Other comprehensive income (loss), tax | (566) | (525) | (1,132) | (1,050) | 1,806 | 1,669 |
Total other comprehensive income (loss), net of tax | 2,700 | 3,456 | 5,315 | $ 1,115 | (71) | (7,036) |
Ending balance, attributable to parent | 2,846,881 | $ 2,846,881 | 2,846,881 | |||
Effective income tax rate | 24.00% | 24.00% | ||||
Defined Benefit Plans | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance, before tax | $ (77,720) | |||||
Beginning balance, tax | 18,653 | |||||
Beginning balance | (59,067) | |||||
Other comprehensive income (loss), before tax | 1,813 | 1,351 | 3,627 | $ 2,703 | (10,195) | (10,299) |
Other comprehensive income (loss), tax | (436) | (324) | (871) | (648) | 2,445 | 2,473 |
Total other comprehensive income (loss), net of tax | 1,377 | 1,027 | 2,756 | 2,055 | (7,750) | (7,826) |
Ending balance, before tax | (74,093) | (74,093) | (74,093) | |||
Ending balance, tax | 17,782 | 17,782 | 17,782 | |||
Ending balance | (56,311) | (56,311) | (56,311) | |||
Amortization of prior service cost | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification from AOCI, before Tax | 240 | 289 | 480 | 578 | 1,057 | 1,214 |
Reclassification from AOCI, tax | (58) | (69) | (116) | (138) | (255) | (291) |
Reclassification from AOCI, net of tax | 182 | 220 | 364 | 440 | 802 | 923 |
Other comprehensive income (loss), before tax | 480 | |||||
Other comprehensive income (loss), tax | (116) | |||||
Total other comprehensive income (loss), net of tax | 364 | |||||
Amortization of net actuarial loss | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Other comprehensive income (loss) before reclassifications, before tax | (57,539) | (71,087) | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (43,730) | (54,026) | ||||
Reclassification from AOCI, before Tax | 11,148 | 9,457 | 22,297 | 18,915 | 41,212 | 30,603 |
Reclassification from AOCI, tax | (2,676) | (2,270) | (5,351) | (4,540) | (9,890) | (7,345) |
Reclassification from AOCI, net of tax | 8,472 | 7,187 | 16,946 | 14,375 | 31,322 | 23,258 |
Other comprehensive income (loss), before tax | 22,297 | |||||
Other comprehensive income (loss), tax | (5,351) | |||||
Total other comprehensive income (loss), net of tax | 16,946 | |||||
Regulatory adjustment | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification from AOCI, before Tax | (9,575) | (8,395) | (19,150) | (16,790) | 5,075 | 30,849 |
Reclassification from AOCI, tax | 2,298 | 2,015 | 4,596 | 4,030 | (1,219) | (7,404) |
Reclassification from AOCI, net of tax | (7,277) | (6,380) | (14,554) | (12,760) | 3,856 | 23,445 |
Other comprehensive income (loss), before tax | (19,150) | |||||
Other comprehensive income (loss), tax | 4,596 | |||||
Total other comprehensive income (loss), net of tax | (14,554) | |||||
FSIRS | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance, before tax | (2,719) | |||||
Beginning balance, tax | 651 | |||||
Beginning balance | (2,068) | |||||
Reclassification from AOCI, before Tax | 544 | 836 | 1,088 | 1,673 | 2,662 | 3,345 |
Reclassification from AOCI, tax | (130) | (201) | (261) | (402) | (639) | (804) |
Reclassification from AOCI, net of tax | 414 | 635 | 827 | 1,271 | 2,023 | 2,541 |
Other comprehensive income (loss), before tax | 544 | 836 | 1,088 | 1,673 | 2,662 | 3,345 |
Other comprehensive income (loss), tax | (130) | (201) | (261) | (402) | (639) | (804) |
Total other comprehensive income (loss), net of tax | 414 | 635 | 827 | 1,271 | 2,023 | 2,541 |
Ending balance, before tax | (1,631) | (1,631) | (1,631) | |||
Ending balance, tax | 390 | 390 | 390 | |||
Ending balance | (1,241) | (1,241) | (1,241) | |||
Foreign Currency Items | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance, before tax | 132 | |||||
Beginning balance | 132 | |||||
Other comprehensive income (loss) before reclassifications, before tax | 1,732 | |||||
Other comprehensive income (loss) before reclassifications, net of tax | 1,732 | |||||
Ending balance, before tax | 1,864 | 1,864 | 1,864 | |||
Ending balance | 1,864 | 1,864 | 1,864 | |||
AOCI Including Portion Attributable to Noncontrolling Interest | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Other comprehensive income (loss) before reclassifications, net of tax | 5,315 | |||||
AOCI Attributable to Parent | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (58,388) | (59,073) | (61,003) | (56,732) | (55,617) | |
Ending balance | (55,688) | (55,617) | (55,688) | (55,617) | (55,688) | (55,617) |
Southwest Gas Corporation | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 2,151,977 | |||||
Beginning balance, attributable to parent | 2,233,468 | |||||
Other comprehensive income (loss), before tax | 2,357 | 2,187 | 4,715 | 4,376 | (7,533) | (6,954) |
Other comprehensive income (loss), tax | (566) | (525) | (1,132) | (1,050) | 1,806 | 1,669 |
Total other comprehensive income (loss), net of tax | 1,791 | 1,662 | 3,583 | 3,326 | (5,727) | (5,285) |
Ending balance, attributable to parent | 2,429,736 | 2,429,736 | 2,429,736 | |||
Ending balance | 2,429,736 | 2,151,977 | 2,429,736 | 2,151,977 | 2,429,736 | 2,151,977 |
Southwest Gas Corporation | Defined Benefit Plans | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance, attributable to parent, before tax | (77,720) | |||||
Beginning balance, attributable to parent, tax | 18,653 | |||||
Beginning balance, attributable to parent | (59,067) | |||||
Other comprehensive income (loss), before tax | 3,627 | |||||
Other comprehensive income (loss), tax | (871) | |||||
Total other comprehensive income (loss), net of tax | 2,756 | |||||
Ending balance, attributable to parent, before tax | (74,093) | (74,093) | (74,093) | |||
Ending balance, attributable to parent, tax | 17,782 | 17,782 | 17,782 | |||
Ending balance, attributable to parent | (56,311) | (56,311) | (56,311) | |||
Southwest Gas Corporation | Amortization of prior service cost | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Other comprehensive income (loss), before tax | 480 | |||||
Other comprehensive income (loss), tax | (116) | |||||
Total other comprehensive income (loss), net of tax | 364 | |||||
Southwest Gas Corporation | Amortization of net actuarial loss | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Other comprehensive income (loss), before tax | 22,297 | |||||
Other comprehensive income (loss), tax | (5,351) | |||||
Total other comprehensive income (loss), net of tax | 16,946 | |||||
Southwest Gas Corporation | Regulatory adjustment | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Other comprehensive income (loss), before tax | (19,150) | |||||
Other comprehensive income (loss), tax | 4,596 | |||||
Total other comprehensive income (loss), net of tax | (14,554) | |||||
Southwest Gas Corporation | FSIRS | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance, attributable to parent, before tax | (2,719) | |||||
Beginning balance, attributable to parent, tax | 651 | |||||
Beginning balance, attributable to parent | (2,068) | |||||
Reclassification from AOCI, before Tax | 1,088 | |||||
Reclassification from AOCI, tax | (261) | |||||
Reclassification from AOCI, net of tax | 827 | |||||
Other comprehensive income (loss), before tax | 1,088 | |||||
Other comprehensive income (loss), tax | (261) | |||||
Total other comprehensive income (loss), net of tax | 827 | |||||
Ending balance, attributable to parent, before tax | (1,631) | (1,631) | (1,631) | |||
Ending balance, attributable to parent, tax | 390 | 390 | 390 | |||
Ending balance, attributable to parent | (1,241) | (1,241) | (1,241) | |||
Southwest Gas Corporation | AOCI Attributable to Parent | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (59,343) | (53,487) | (61,135) | (55,151) | (51,825) | |
Beginning balance, attributable to parent | (61,135) | |||||
Ending balance, attributable to parent | (57,552) | (57,552) | (57,552) | |||
Ending balance | $ (57,552) | $ (51,825) | $ (57,552) | $ (51,825) | $ (57,552) | $ (51,825) |
Other Comprehensive Income an_6
Other Comprehensive Income and Accumulated Other Comprehensive Income - Amounts Recognized Before Tax, Defined Benefit Plans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Equity [Abstract] | ||
Net actuarial loss | $ (480,486) | $ (502,783) |
Prior service cost | (2,007) | (2,487) |
Less: amount recognized in regulatory assets | 408,400 | 427,550 |
Recognized in AOCI | $ (74,093) | $ (77,720) |
Segment Information - Accounts
Segment Information - Accounts Receivable for Services (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Centuri | ||
Segment Reporting Information [Line Items] | ||
Centuri accounts receivable for services provided to Southwest | $ 10,356 | $ 13,956 |
Segment Information - Narrative
Segment Information - Narratives (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 821,421 | $ 757,247 | $ 1,707,328 | $ 1,593,567 | $ 3,412,634 | $ 3,166,934 |
Segment net income (loss) | 25,119 | 37,965 | 142,412 | 110,507 | 264,229 | 207,578 |
Revenues from external customers | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 797,737 | 720,324 | 1,659,441 | 1,523,442 | 3,300,013 | 3,025,838 |
Intersegment revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 23,684 | 36,923 | 47,887 | 70,125 | 112,621 | 141,096 |
Segment net income (loss) | (1,410) | (244) | (1,973) | (1,097) | (2,532) | (1,957) |
Natural Gas Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 292,796 | 262,434 | 814,728 | 765,261 | 1,400,052 | 1,354,812 |
Segment net income (loss) | 11,413 | 11,942 | 130,128 | 95,541 | 193,705 | 151,954 |
Natural Gas Operations | Revenues from external customers | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 292,796 | 262,434 | 814,728 | 765,261 | 1,400,052 | 1,354,812 |
Natural Gas Operations | Intersegment revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 0 | 0 | 0 | 0 | 0 | 0 |
Utility Infrastructure Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 528,625 | 494,813 | 892,600 | 828,306 | 2,012,582 | 1,812,122 |
Segment net income (loss) | 15,116 | 26,267 | 14,257 | 16,063 | 73,056 | 57,581 |
Utility Infrastructure Services | Revenues from external customers | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 504,941 | 457,890 | 844,713 | 758,181 | 1,899,961 | 1,671,026 |
Utility Infrastructure Services | Intersegment revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 23,684 | $ 36,923 | $ 47,887 | $ 70,125 | $ 112,621 | $ 141,096 |