Background, Organization, and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Other Property and Investments

Other property and investments on Southwest’s and the Company’s Condensed Consolidated Balance Sheets includes:

(Thousands of dollars)	March 31, 2022		December 31, 2021
Net cash surrender value of COLI policies	$	147,987	$	149,947
Other property	3,181		3,146
Total Southwest Gas Corporation	151,168		153,093
Non-regulated property, equipment, and intangibles	1,645,159		1,616,392
Non-regulated accumulated provision for depreciation and amortization	(540,206)		(512,343)
Other property and investments	57,170		59,337
Total Southwest Gas Holdings, Inc.	$	1,313,291	$	1,316,479

Schedule of Goodwill

Goodwill in Southwest’s and the Company’s Condensed Consolidated Balance Sheets is as follows:

(Thousands of dollars)	Natural Gas Distribution		Utility Infrastructure Services		Pipeline and Storage		Total Company
December 31, 2021	$	10,095	$	785,058	$	986,179	$	1,781,332
Measurement-period adjustments from Riggs Distler acquisition (a)	—		(574)		—		(574)
Measurement-period adjustments from MountainWest acquisition (a)	—		—		(8,690)		(8,690)
Foreign currency translation adjustment	—		1,603		—		1,603
March 31, 2022	$	10,095	$	786,087	$	977,489	$	1,773,671

(a) See Note 8 - Business Acquisitions for details regarding measurement-period adjustments.

Schedule of Significant Items Included in Other Income (Deductions)

The following table provides the composition of significant items included in Other income (deductions) in Southwest’s and the Company’s Condensed Consolidated Statements of Income:

	Three Months Ended March 31,				Twelve Months Ended March 31,
(Thousands of dollars)	2022		2021		2022		2021
Southwest Gas Corporation:
Change in COLI policies	$	(2,000)	$	2,700	$	4,100	$	27,400
Interest income	2,801		716		7,198		3,343
Equity AFUDC	76		981		(905)		4,644
Other components of net periodic benefit cost	(188)		(3,505)		(10,704)		(18,522)
Miscellaneous income and (expense)	626		(342)		(3,483)		(2,369)
Southwest Gas Corporation - total other income (deductions)	1,315		550		(3,794)		14,496
Centuri, MountainWest, and Southwest Gas Holdings, Inc.:
Foreign transaction gain (loss)	3		(3)		(16)		(9)
Equity AFUDC	182		—		182		—
Equity in earnings of unconsolidated investments	515		(8)		749		121
Miscellaneous income and (expense)	(771)		(91)		176		(179)
Southwest Gas Holdings, Inc. - total other income (deductions)	$	1,244	$	448	$	(2,703)	$	14,429

Summary of Redeemable Noncontrolling Interest

The following depicts changes to the balances of the redeemable noncontrolling interests:

(Thousands of dollars):	Linetec		Drum		Total
Balance, December 31, 2021	$	184,148	$	12,569	$	196,717
Net income attributable to redeemable noncontrolling interests	1,103		(31)		1,072
Redemption value adjustments	(22,156)		—		(22,156)
Redemption of equity interest from noncontrolling party	(39,649)		—		(39,649)
Balance, March 31, 2022	$	123,446	$	12,538	$	135,984

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 March 31,		Twelve Months Ended March 31,
(In thousands)	2022	2021	2022	2021
Weighted average basic shares	60,737	57,600	59,919	56,564
Effect of dilutive securities:
Restricted stock units (1)	117	79	125	85
Weighted average diluted shares	60,854	57,679	60,044	56,649

(1) The number of securities included 112,000 and 75,000 performance shares during the three months ending March 31, 2022 and 2021, and 114,000 and 76,000 performance shares during the twelve months ending March 31, 2022 and 2021, respectively, the total of which was derived by assuming that target performance will be achieved during the relevant performance period.