Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2022

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


	Three Months Ended September 30, 2022						Three Months Ended September 30, 2021
(Thousands of dollars)	Before- Tax Amount		Tax (Expense) or Benefit (1)		Net-of- Tax Amount		Before- Tax Amount		Tax (Expense) or Benefit (1)		Net-of- Tax Amount
Defined benefit pension plans:
Amortization of prior service cost	$	44	$	(10)	$	34	$	239	$	(56)	$	183
Amortization of net actuarial (gain)/loss	8,705		(2,089)		6,616		11,151		(2,677)		8,474
Regulatory adjustment	(7,268)		1,744		(5,524)		(9,575)		2,298		(7,277)
Pension plans other comprehensive income (loss)	1,481		(355)		1,126		1,815		(435)		1,380
FSIRS (designated hedging activities):
Amounts reclassified into net income	—		—		—		544		(131)		413
FSIRS other comprehensive income (loss)	—		—		—		544		(131)		413
Total other comprehensive income (loss) - Southwest Gas Corporation	1,481		(355)		1,126		2,359		(566)		1,793
Foreign currency translation adjustments:
Translation adjustments	(5,830)		—		(5,830)		(2,056)		—		(2,056)
Foreign currency other comprehensive income (loss)	(5,830)		—		(5,830)		(2,056)		—		(2,056)
Total other comprehensive income (loss) - Southwest Gas Holdings, Inc.	$	(4,349)	$	(355)	$	(4,704)	$	303	$	(566)	$	(263)

	Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
(Thousands of dollars)	Before- Tax Amount		Tax (Expense) or Benefit (1)		Net-of- Tax Amount		Before- Tax Amount		Tax (Expense) or Benefit (1)		Net-of- Tax Amount
Defined benefit pension plans:
Amortization of prior service cost	$	132	$	(32)	$	100	$	719	$	(172)	$	547
Amortization of net actuarial (gain)/loss	26,114		(6,267)		19,847		33,448		(8,028)		25,420
Regulatory adjustment	(21,804)		5,233		(16,571)		(28,725)		6,894		(21,831)
Pension plans other comprehensive income (loss)	4,442		(1,066)		3,376		5,442		(1,306)		4,136
FSIRS (designated hedging activities):
Amounts reclassified into net income	545		(129)		416		1,632		(392)		1,240
FSIRS other comprehensive income (loss)	545		(129)		416		1,632		(392)		1,240
Total other comprehensive income (loss) - Southwest Gas Corporation	4,987		(1,195)		3,792		7,074		(1,698)		5,376
Foreign currency translation adjustments:
Translation adjustments	(7,263)		—		(7,263)		(324)		—		(324)
Foreign currency other comprehensive income (loss)	(7,263)		—		(7,263)		(324)		—		(324)
Total other comprehensive income (loss) - Southwest Gas Holdings, Inc.	$	(2,276)	$	(1,195)	$	(3,471)	$	6,750	$	(1,698)	$	5,052


	Twelve Months Ended September 30, 2022						Twelve Months Ended September 30, 2021
(Thousands of dollars)	Before- Tax Amount		Tax (Expense) or Benefit (1)		Net-of- Tax Amount		Before- Tax Amount		Tax (Expense) or Benefit (1)		Net-of- Tax Amount
Defined benefit pension plans:
Net actuarial gain/(loss)	$	59,176	$	(14,202)	$	44,974	$	(57,539)	$	13,809	$	(43,730)
Amortization of prior service cost	372		(90)		282		1,007		(241)		766
Amortization of net actuarial (gain)/loss	37,263		(8,942)		28,321		42,906		(10,298)		32,608

Regulatory adjustment	(81,273)		19,506		(61,767)		3,894		(935)		2,959
Pension plans other comprehensive income (loss)	15,538		(3,728)		11,810		(9,732)		2,335		(7,397)
FSIRS (designated hedging activities):
Amounts reclassified into net income	1,087		(259)		828		2,176		(523)		1,653
FSIRS other comprehensive income (loss)	1,087		(259)		828		2,176		(523)		1,653
Total other comprehensive income (loss) - Southwest Gas Corporation	16,625		(3,987)		12,638		(7,556)		1,812		(5,744)
Foreign currency translation adjustments:
Translation adjustments	(6,919)		—		(6,919)		2,576		—		2,576
Foreign currency other comprehensive income (loss)	(6,919)		—		(6,919)		2,576		—		2,576
Total other comprehensive income (loss) - Southwest Gas Holdings, Inc.	$	9,706	$	(3,987)	$	5,719	$	(4,980)	$	1,812	$	(3,168)

(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 (Expense) Benefit (4)		After-Tax		Before-Tax		Tax (Expense) Benefit (4)		After-Tax		Before-Tax		Tax (Expense) Benefit		After-Tax		AOCI
Beginning Balance AOCI December 31, 2021	$	(61,182)	$	14,685	$	(46,497)	$	(545)	$	129	$	(416)	$	152	$	—	$	152	$	(46,761)
Translation adjustments	—		—		—		—		—		—		(7,263)		—		(7,263)		(7,263)
Other comprehensive income (loss) before reclassifications	—		—		—		—		—		—		(7,263)		—		(7,263)		(7,263)
FSIRS amount reclassified from AOCI (1)	—		—		—		545		(129)		416		—		—		—		416
Amortization of prior service cost (2)	132		(32)		100		—		—		—		—		—		—		100
Amortization of net actuarial loss (2)	26,114		(6,267)		19,847		—		—		—		—		—		—		19,847
Regulatory adjustment (3)	(21,804)		5,233		(16,571)		—		—		—		—		—		—		(16,571)
Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc.	4,442		(1,066)		3,376		545		(129)		416		(7,263)		—		(7,263)		(3,471)
Ending Balance AOCI September 30, 2022	$	(56,740)	$	13,619	$	(43,121)	$	—	$	—	$	—	$	(7,111)	$	—	$	(7,111)	$	(50,232)

(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 (Expense) Benefit (8)		After-Tax		Before-Tax		Tax (Expense) Benefit (8)		After-Tax		AOCI
Beginning Balance AOCI December 31, 2021	$	(61,182)	$	14,685	$	(46,497)	$	(545)	$	129	$	(416)	$	(46,913)
FSIRS amount reclassified from AOCI (5)	—		—		—		545		(129)		416		416
Amortization of prior service cost (6)	132		(32)		100		—		—		—		100
Amortization of net actuarial loss (6)	26,114		(6,267)		19,847		—		—		—		19,847
Regulatory adjustment (7)	(21,804)		5,233		(16,571)		—		—		—		(16,571)
Net current period other comprehensive income attributable to Southwest Gas Corporation	4,442		(1,066)		3,376		545		(129)		416		3,792
Ending Balance AOCI September 30, 2022	$	(56,740)	$	13,619	$	(43,121)	$	—	$	—	$	—	$	(43,121)

(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)	September 30, 2022		December 31, 2021
Net actuarial loss	$	(372,896)	$	(399,010)
Prior service cost	(1,396)		(1,528)
Less: amount recognized in regulatory assets	317,552		339,356
Recognized in AOCI	$	(56,740)	$	(61,182)

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)	September 30, 2022		December 31, 2021
Net actuarial loss	$	(372,896)	$	(399,010)
Prior service cost	(1,396)		(1,528)
Less: amount recognized in regulatory assets	317,552		339,356
Recognized in AOCI	$	(56,740)	$	(61,182)