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Other Comprehensive Income and Accumulated Other Comprehensive Income
 3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
Other Comprehensive Income and Accumulated Other Comprehensive Income
Note 6 – Other Comprehensive Income and Accumulated Other Comprehensive Income
The following information provides insight into amounts impacting the Company’s Other comprehensive income (loss), both before and after-tax impacts, within the Condensed Consolidated Statements of Comprehensive Income, which also impact Accumulated other comprehensive income (“AOCI”) in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Equity.
Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss)
 
 
Three Months Ended March 31, 2020
 
Three Months Ended March 31, 2019
(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
 
$
289

 
$
(69
)
 
$
220

 
$
317

 
$
(76
)
 
$
241

Amortization of net actuarial (gain)/loss
 
9,458

 
(2,270
)
 
7,188

 
5,844

 
(1,403
)
 
4,441

Regulatory adjustment
 
(8,395
)
 
2,015

 
(6,380
)
 
(5,347
)
 
1,284

 
(4,063
)
Pension plans other comprehensive income (loss)
 
1,352

 
(324
)
 
1,028

 
814

 
(195
)
 
619

FSIRS (designated hedging activities):
 
 
 
 
 
 
 
 
 
 
 
 
Amounts reclassified into net income
 
837

 
(201
)
 
636

 
836

 
(201
)
 
635

FSIRS other comprehensive income (loss)
 
837

 
(201
)
 
636

 
836

 
(201
)
 
635

Total other comprehensive income (loss) - Southwest Gas Corporation
 
2,189

 
(525
)
 
1,664

 
1,650

 
(396
)
 
1,254

Foreign currency translation adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
Translation adjustments
 
(4,005
)
 
—

 
(4,005
)
 
791

 
—

 
791

Foreign currency other comprehensive income (loss)
 
(4,005
)
 
—

 
(4,005
)
 
791

 
—

 
791

Total other comprehensive income (loss) - Southwest Gas Holdings, Inc.
 
$
(1,816
)
 
$
(525
)
 
$
(2,341
)
 
$
2,441

 
$
(396
)
 
$
2,045

 
 
Twelve Months Ended March 31, 2020
 
Twelve Months Ended March 31, 2019
(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)
 
$
(71,087
)
 
$
17,061

 
$
(54,026
)
 
$
(20,426
)
 
$
4,902

 
$
(15,524
)
Amortization of prior service cost
 
1,243

 
(298
)
 
945

 
1,318

 
(316
)
 
1,002

Amortization of net actuarial (gain)/loss
 
26,990

 
(6,477
)
 
20,513

 
31,057

 
(7,454
)
 
23,603

Prior service cost
 
(1,878
)
 
452

 
(1,426
)
 
—

 
—

 
—

Regulatory adjustment
 
33,896

 
(8,136
)
 
25,760

 
(6,020
)
 
1,446

 
(4,574
)
Pension plans other comprehensive income (loss)
 
(10,836
)
 
2,602

 
(8,234
)
 
5,929

 
(1,422
)
 
4,507

FSIRS (designated hedging activities):
 
 
 
 
 
 
 
 
 
 
 
 
Amounts reclassified into net income
 
3,345

 
(803
)
 
2,542

 
3,344

 
(803
)
 
2,541

FSIRS other comprehensive income (loss)
 
3,345

 
(803
)
 
2,542

 
3,344

 
(803
)
 
2,541

Total other comprehensive income (loss) - Southwest Gas Corporation
 
(7,491
)
 
1,799

 
(5,692
)
 
9,273

 
(2,225
)
 
7,048

Foreign currency translation adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
Translation adjustments
 
(2,758
)
 
—

 
(2,758
)
 
(1,308
)
 
—

 
(1,308
)
Foreign currency other comprehensive income (loss)
 
(2,758
)
 
—

 
(2,758
)
 
(1,308
)
 
—

 
(1,308
)
Total other comprehensive income (loss) - Southwest Gas Holdings, Inc.
 
$
(10,249
)
 
$
1,799

 
$
(8,450
)
 
$
7,965

 
$
(2,225
)
 
$
5,740

(1)Tax amounts are calculated using a 24% rate. The Company has elected to indefinitely reinvest the earnings of Centuri’s Canadian subsidiaries in Canada, thus precluding deferred taxes on such earnings. As a result of this assertion, and no repatriation of earnings anticipated, the Company is not recognizing a tax effect or presenting a tax expense or benefit for currency translation adjustments reported in Other comprehensive income (loss).
Approximately $2.2 million of realized losses (net of tax) related to Southwest’s forward-starting interest rate swaps (“FSIRS”), included in AOCI at March 31, 2020, will be reclassified into interest expense within the next 12 months as the related interest payments on long-term debt occur.
The following table represents a rollforward of AOCI, presented on the Company’s Condensed Consolidated Balance Sheets and its Condensed Consolidated Statements of Equity:
 
 
Defined Benefit Plans
 
FSIRS
 
Foreign Currency Items
 
 
(Thousands of dollars)
 
Before-Tax
 
Tax
(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, 2019
 
$
(66,601
)
 
$
15,985

 
$
(50,616
)
 
$
(5,966
)
 
$
1,431

 
$
(4,535
)
 
$
(1,581
)
 
$
—

 
$
(1,581
)
 
$
(56,732
)
Translation adjustments
 
—

 
—

 
—

 
—

 
—

 
—

 
(4,005
)
 
—

 
(4,005
)
 
(4,005
)
Other comprehensive income (loss) before reclassifications
 
—

 
—

 
—

 
—

 
—

 
—

 
(4,005
)
 
—

 
(4,005
)
 
(4,005
)
FSIRS amounts reclassified from AOCI (1)
 
—

 
—

 
—

 
837

 
(201
)
 
636

 
—

 
—

 
—

 
636

Amortization of prior service cost (2)
 
289

 
(69
)
 
220

 
—

 
—

 
—

 
—

 
—

 
—

 
220

Amortization of net actuarial loss (2)
 
9,458

 
(2,270
)
 
7,188

 
—

 
—

 
—

 
—

 
—

 
—

 
7,188

Regulatory adjustment (3)
 
(8,395
)
 
2,015

 
(6,380
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(6,380
)
Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc.
 
1,352

 
(324
)
 
1,028

 
837

 
(201
)
 
636

 
(4,005
)
 
—

 
(4,005
)
 
(2,341
)
Ending Balance AOCI March 31, 2020
 
$
(65,249
)
 
$
15,661

 
$
(49,588
)
 
$
(5,129
)
 
$
1,230

 
$
(3,899
)
 
$
(5,586
)
 
$
—

 
$
(5,586
)
 
$
(59,073
)
(1)The FSIRS reclassification amounts are included in Net interest deductions on the Company’s Condensed Consolidated Statements of Income.
(2)These AOCI components are included in the computation of net periodic benefit cost (see Note 2 – Components of Net Periodic Benefit Cost for additional details).
(3)The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included in Deferred charges and other assets on the Company’s Condensed Consolidated Balance Sheets).
(4)Tax amounts are calculated using a 24% rate.

The following table represents a rollforward of AOCI, presented on Southwest’s Condensed Consolidated Balance Sheets:
 
 
Defined Benefit Plans
 
FSIRS
 
 
(Thousands of dollars)
 
Before-Tax
 
Tax
(Expense)
Benefit (8)
 
After-Tax
 
Before-Tax
 
Tax
(Expense)
Benefit (8)
 
After-Tax
 
AOCI
Beginning Balance AOCI December 31, 2019
 
$
(66,601
)
 
$
15,985

 
$
(50,616
)
 
$
(5,966
)
 
$
1,431

 
$
(4,535
)
 
$
(55,151
)
FSIRS amounts reclassified from AOCI (5)
 
—

 
—

 
—

 
837

 
(201
)
 
636

 
636

Amortization of prior service cost (6)
 
289

 
(69
)
 
220

 
—

 
—

 
—

 
220

Amortization of net actuarial loss (6)
 
9,458

 
(2,270
)
 
7,188

 
—

 
—

 
—

 
7,188

Regulatory adjustment (7)
 
(8,395
)
 
2,015

 
(6,380
)
 
—

 
—

 
—

 
(6,380
)
Net current period other comprehensive income attributable to Southwest Gas Corporation
 
1,352

 
(324
)
 
1,028

 
837

 
(201
)
 
636

 
1,664

Ending Balance AOCI March 31, 2020
 
$
(65,249
)
 
$
15,661

 
$
(49,588
)
 
$
(5,129
)
 
$
1,230

 
$
(3,899
)
 
$
(53,487
)
(5)    The FSIRS reclassification amounts are included in Net interest deductions on Southwest’s Condensed Consolidated Statements of Income.
(6)These AOCI components are included in the computation of net periodic benefit cost (see Note 2 – Components of Net Periodic Benefit Cost for additional details).
(7)The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included in Deferred charges and other assets on Southwest’s Condensed Consolidated Balance Sheets).
(8)Tax amounts are calculated using a 24% rate.
The following table represents amounts (before income tax impacts) included in AOCI (in the tables above), that have not yet been recognized in net periodic benefit cost:
(Thousands of dollars)
 
March 31, 2020
 
December 31, 2019
Net actuarial (loss) gain
 
$
(473,616
)
 
$
(483,074
)
Prior service cost
 
(3,352
)
 
(3,641
)
Less: amount recognized in regulatory assets
 
411,719

 
420,114

Recognized in AOCI
 
$
(65,249
)
 
$
(66,601
)