Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2020



	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).

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, 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.

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)	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	)