Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SWX | |
Entity Registrant Name | Southwest Gas Holdings, Inc. | |
Entity Central Index Key | 0001692115 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 53,396,583 | |
Southwest Gas Corporation | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SWX | |
Entity Registrant Name | Southwest Gas Corporation | |
Entity Central Index Key | 0000092416 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Utility plant: | ||
Gas plant | $ 7,268,255 | $ 7,134,239 |
Less: accumulated depreciation | (2,257,017) | (2,234,029) |
Construction work in progress | 204,370 | 193,028 |
Net utility plant | 5,215,608 | 5,093,238 |
Other property and investments | 716,722 | 623,551 |
Current assets: | ||
Cash and cash equivalents | 97,037 | 85,361 |
Accounts receivable, net of allowances | 429,248 | 413,926 |
Accrued utility revenue | 47,000 | 77,200 |
Income taxes receivable | 14,069 | 14,653 |
Deferred purchased gas costs | 65,242 | 4,928 |
Prepaid and other current assets | 177,784 | 243,701 |
Total current assets | 830,380 | 839,769 |
Noncurrent assets: | ||
Goodwill | 364,482 | 359,045 |
Deferred income taxes | 1,074 | 1,264 |
Deferred charges and other assets | 441,166 | 440,862 |
Total noncurrent assets | 806,722 | 801,171 |
Total assets | 7,569,432 | 7,357,729 |
Capitalization: | ||
Common stock, $1 par (authorized - 60,000,000 shares; issued and outstanding - 53,391,731 and 53,026,848 shares) | 55,021 | 54,656 |
Additional paid-in capital | 1,332,793 | 1,305,769 |
Accumulated other comprehensive income (loss), net | (50,623) | (52,668) |
Retained earnings | 1,009,809 | 944,285 |
Total Southwest Gas Holdings, Inc. equity | 2,347,000 | 2,252,042 |
Noncontrolling interest | (452) | (452) |
Total equity | 2,346,548 | 2,251,590 |
Redeemable noncontrolling interest | 82,406 | 81,831 |
Long-term debt, less current maturities | 2,106,274 | 2,107,258 |
Total capitalization | 4,535,228 | 4,440,679 |
Current liabilities: | ||
Current maturities of long-term debt | 34,915 | 33,060 |
Short-term debt | 188,000 | 152,000 |
Accounts payable | 231,343 | 248,993 |
Customer deposits | 68,593 | 67,940 |
Income taxes payable | 0 | 1,083 |
Accrued general taxes | 69,423 | 43,560 |
Accrued interest | 31,439 | 21,369 |
Deferred purchased gas costs | 72,213 | 79,762 |
Other current liabilities | 278,552 | 290,878 |
Total current liabilities | 974,478 | 938,645 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits | 556,063 | 529,201 |
Accumulated removal costs | 385,000 | 383,000 |
Other deferred credits and other long-term liabilities | 1,118,663 | 1,066,204 |
Total deferred income taxes and other credits | 2,059,726 | 1,978,405 |
Total capitalization and liabilities | 7,569,432 | 7,357,729 |
Southwest Gas Corporation | ||
Utility plant: | ||
Gas plant | 7,268,255 | 7,134,239 |
Less: accumulated depreciation | (2,257,017) | (2,234,029) |
Construction work in progress | 204,370 | 193,028 |
Net utility plant | 5,215,608 | 5,093,238 |
Other property and investments | 123,783 | 116,146 |
Current assets: | ||
Cash and cash equivalents | 75,148 | 31,962 |
Accounts receivable, net of allowances | 170,471 | 140,057 |
Accrued utility revenue | 47,000 | 77,200 |
Income taxes receivable | 10,602 | 13,444 |
Deferred purchased gas costs | 65,242 | 4,928 |
Prepaid and other current assets | 165,382 | 229,562 |
Total current assets | 533,845 | 497,153 |
Noncurrent assets: | ||
Goodwill | 10,095 | 10,095 |
Deferred charges and other assets | 423,495 | 424,952 |
Total noncurrent assets | 433,590 | 435,047 |
Total assets | 6,306,826 | 6,141,584 |
Capitalization: | ||
Common stock, $1 par (authorized - 60,000,000 shares; issued and outstanding - 53,391,731 and 53,026,848 shares) | 49,112 | 49,112 |
Additional paid-in capital | 1,089,002 | 1,065,242 |
Accumulated other comprehensive income (loss), net | (47,795) | (49,049) |
Retained earnings | 797,584 | 717,155 |
Total Southwest Gas Holdings, Inc. equity | 1,887,903 | 1,782,460 |
Total equity | 1,887,903 | 1,782,460 |
Long-term debt, less current maturities | 1,818,959 | 1,818,669 |
Total capitalization | 3,706,862 | 3,601,129 |
Current liabilities: | ||
Short-term debt | 188,000 | 152,000 |
Accounts payable | 148,309 | 184,982 |
Customer deposits | 68,593 | 67,940 |
Accrued general taxes | 69,423 | 43,560 |
Accrued interest | 30,398 | 20,243 |
Deferred purchased gas costs | 72,213 | 79,762 |
Payable to parent | 1,038 | 472 |
Other current liabilities | 100,556 | 94,136 |
Total current liabilities | 678,530 | 643,095 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits | 517,124 | 490,458 |
Accumulated removal costs | 385,000 | 383,000 |
Other deferred credits and other long-term liabilities | 1,019,310 | 1,023,902 |
Total deferred income taxes and other credits | 1,921,434 | 1,897,360 |
Total capitalization and liabilities | $ 6,306,826 | $ 6,141,584 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par (in USD per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, issued (in shares) | 53,391,731 | 53,026,848 |
Common stock, outstanding (in shares) | 53,391,731 | 53,026,848 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Operating revenues: | ||||
Gas operating revenues | $ 520,677 | $ 494,313 | $ 1,384,092 | $ 1,334,019 |
Utility infrastructure services revenues | 312,862 | 260,017 | 1,575,130 | 1,314,366 |
Total operating revenues | 833,539 | 754,330 | 2,959,222 | 2,648,385 |
Operating expenses: | ||||
Net cost of gas sold | 192,604 | 185,732 | 426,260 | 393,898 |
Operations and maintenance | 106,245 | 102,351 | 410,287 | 390,819 |
Depreciation and amortization | 77,539 | 62,478 | 264,273 | 240,951 |
Taxes other than income taxes | 16,206 | 15,257 | 60,847 | 58,421 |
Utility infrastructure services expenses | 300,465 | 258,952 | 1,429,202 | 1,215,959 |
Total operating expenses | 693,059 | 624,770 | 2,590,869 | 2,300,048 |
Operating income | 140,480 | 129,560 | 368,353 | 348,337 |
Other income and (expenses): | ||||
Net interest deductions | (26,397) | (22,631) | (100,437) | (81,981) |
Other income (deductions) | 6,839 | (4,334) | (6,253) | (9,374) |
Total other income and (expenses) | (19,558) | (26,965) | (106,690) | (91,355) |
Income before income taxes | 120,922 | 102,595 | 261,663 | 256,982 |
Income tax expense | 25,538 | 24,301 | 62,921 | 53,751 |
Net income | 95,384 | 78,294 | 198,742 | 203,231 |
Net income (loss) attributable to noncontrolling interests | 575 | (797) | 747 | (393) |
Net income attributable to Southwest Gas Holdings, Inc. | $ 94,809 | $ 79,091 | $ 197,995 | $ 203,624 |
Basic earnings per share (in USD per share) | $ 1.78 | $ 1.63 | $ 3.91 | $ 4.23 |
Diluted earnings per share (in USD per share) | $ 1.77 | $ 1.63 | $ 3.91 | $ 4.23 |
Average number of common shares (in shares) | 53,369 | 48,416 | 50,640 | 48,105 |
Average shares (assuming dilution) (in shares) | 53,424 | 48,459 | 50,701 | 48,139 |
Southwest Gas Corporation | ||||
Operating revenues: | ||||
Gas operating revenues | $ 520,677 | $ 494,313 | $ 1,384,092 | $ 1,334,019 |
Operating expenses: | ||||
Net cost of gas sold | 192,604 | 185,732 | 426,260 | 393,898 |
Operations and maintenance | 105,542 | 102,190 | 408,165 | 389,687 |
Depreciation and amortization | 57,612 | 49,961 | 199,467 | 190,688 |
Taxes other than income taxes | 16,206 | 15,257 | 60,847 | 58,421 |
Total operating expenses | 371,964 | 353,140 | 1,094,739 | 1,032,694 |
Operating income | 148,713 | 141,173 | 289,353 | 301,325 |
Other income and (expenses): | ||||
Net interest deductions | (23,099) | (19,255) | (85,584) | (71,778) |
Other income (deductions) | 5,946 | (4,603) | (6,691) | (9,747) |
Total other income and (expenses) | (17,153) | (23,858) | (92,275) | (81,525) |
Income before income taxes | 131,560 | 117,315 | 197,078 | 219,800 |
Income tax expense | 28,171 | 26,966 | 45,196 | 49,571 |
Net income | 103,389 | 90,349 | 151,882 | 170,229 |
Net income attributable to Southwest Gas Holdings, Inc. | $ 103,389 | $ 90,349 | $ 151,882 | $ 170,229 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 95,384 | $ 78,294 | $ 198,742 | $ 203,231 |
Defined benefit pension plans: | ||||
Net actuarial gain (loss) | 0 | 0 | (15,524) | (32,701) |
Amortization of prior service cost | 241 | 254 | 1,002 | 875 |
Amortization of net actuarial loss | 4,441 | 6,387 | 23,603 | 18,219 |
Regulatory adjustment | (4,063) | (5,746) | (4,574) | 10,400 |
Net defined benefit pension plans | 619 | 895 | 4,507 | (3,207) |
Forward-starting interest rate swaps (“FSIRS”): | ||||
Amounts reclassified into net income | 635 | 635 | 2,541 | 2,190 |
Net forward-starting interest rate swaps | 635 | 635 | 2,541 | 2,190 |
Foreign currency translation adjustments | 791 | (911) | (1,308) | 640 |
Total other comprehensive income (loss), net of tax | 2,045 | 619 | 5,740 | (377) |
Comprehensive income | 97,429 | 78,913 | 204,482 | 202,854 |
Comprehensive income (loss) attributable to noncontrolling interests | 575 | (797) | 747 | (389) |
Comprehensive income attributable to Southwest Gas Holdings, Inc. | 96,854 | 79,710 | 203,735 | 203,243 |
Southwest Gas Corporation | ||||
Net income | 103,389 | 90,349 | 151,882 | 170,229 |
Defined benefit pension plans: | ||||
Net actuarial gain (loss) | 0 | 0 | (15,524) | (32,701) |
Amortization of prior service cost | 241 | 254 | 1,002 | 875 |
Amortization of net actuarial loss | 4,441 | 6,387 | 23,603 | 18,219 |
Regulatory adjustment | (4,063) | (5,746) | (4,574) | 10,400 |
Net defined benefit pension plans | 619 | 895 | 4,507 | (3,207) |
Forward-starting interest rate swaps (“FSIRS”): | ||||
Amounts reclassified into net income | 635 | 635 | 2,541 | 2,190 |
Net forward-starting interest rate swaps | 635 | 635 | 2,541 | 2,190 |
Total other comprehensive income (loss), net of tax | 1,254 | 1,530 | 7,048 | (1,017) |
Comprehensive income | $ 104,643 | $ 91,879 | $ 158,930 | $ 169,212 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||||
Net income | $ 95,384 | $ 78,294 | $ 198,742 | $ 203,231 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 77,539 | 62,478 | 264,273 | 240,951 |
Deferred income taxes | 24,923 | 23,228 | 52,736 | 49,372 |
Changes in current assets and liabilities: | ||||
Accounts receivable, net of allowances | (15,562) | 8,858 | (40,282) | (68,978) |
Accrued utility revenue | 30,200 | 30,900 | 300 | (1,400) |
Deferred purchased gas costs | (67,863) | (10,628) | 25,339 | (36,330) |
Accounts payable | (12,643) | (48,497) | 47,632 | 26,762 |
Accrued taxes | 25,400 | 18,776 | (5,331) | 491 |
Other current assets and liabilities | 47,848 | (643) | (5,582) | (29,945) |
Gains on sale | (233) | (230) | (1,706) | (4,087) |
Changes in undistributed stock compensation | 3,188 | 1,861 | 7,438 | 6,638 |
AFUDC | (960) | (229) | (4,358) | (2,050) |
Changes in other assets and deferred charges | (16,328) | (1,845) | (20,221) | (16,941) |
Changes in other liabilities and deferred credits | (2,782) | 18,244 | 17,420 | 20,965 |
Net cash provided by operating activities | 188,111 | 180,567 | 536,400 | 388,679 |
CASH FLOW FROM INVESTING ACTIVITIES: | ||||
Construction expenditures and property additions | (210,662) | (154,542) | (822,034) | (662,401) |
Acquisition of businesses, net of cash acquired | 0 | (4,209) | (247,164) | (98,413) |
Changes in customer advances | 3,078 | 3,038 | 13,503 | 2,304 |
Miscellaneous inflows | 262 | 1,505 | 3,200 | 13,429 |
Net cash used in investing activities | (207,322) | (154,208) | (1,052,495) | (745,081) |
CASH FLOW FROM FINANCING ACTIVITIES: | ||||
Issuance of common stock, net | 25,879 | 11,220 | 369,061 | 52,375 |
Dividends paid | (27,602) | (23,839) | (104,003) | (94,572) |
Centuri distribution to redeemable noncontrolling interest | 0 | (102) | 0 | (204) |
Issuance of long-term debt, net | 29,666 | 335,382 | 259,456 | 716,165 |
Retirement of long-term debt | (31,160) | (21,102) | (247,816) | (312,308) |
Change in credit facility and commercial paper | 0 | (111,000) | 111,000 | 24,000 |
Change in short-term debt | 36,000 | (192,000) | 165,500 | 22,500 |
Principal payments on finance lease obligations | (70) | (165) | (553) | (946) |
Redemption of Centuri shares from noncontrolling parties | 0 | 0 | 0 | (23,000) |
Withholding remittance - share-based compensation | (1,838) | (2,852) | (2,096) | (3,510) |
Other | (53) | (337) | (2,460) | (2,498) |
Net cash provided by (used in) financing activities | 30,822 | (4,795) | 548,089 | 378,002 |
Effects of currency translation on cash and cash equivalents | 65 | (71) | (72) | 114 |
Change in cash and cash equivalents | 11,676 | 21,493 | 31,922 | 21,714 |
Cash and cash equivalents at beginning of period | 85,361 | 43,622 | 65,115 | 43,401 |
Cash and cash equivalents at end of period | 97,037 | 65,115 | 97,037 | 65,115 |
Supplemental information: | ||||
Interest paid, net of amounts capitalized | 15,850 | 13,294 | 89,118 | 74,949 |
Income taxes paid (received) | 454 | 4,418 | (2,743) | 8,264 |
Southwest Gas Corporation | ||||
CASH FLOW FROM OPERATING ACTIVITIES: | ||||
Net income | 103,389 | 90,349 | 151,882 | 170,229 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 57,612 | 49,961 | 199,467 | 190,688 |
Deferred income taxes | 26,270 | 18,676 | 50,593 | 46,622 |
Changes in current assets and liabilities: | ||||
Accounts receivable, net of allowances | (30,414) | (28,201) | (22,522) | (29,031) |
Accrued utility revenue | 30,200 | 30,900 | 300 | (1,400) |
Deferred purchased gas costs | (67,863) | (10,628) | 25,339 | (36,330) |
Accounts payable | (39,574) | (34,564) | 18,398 | 14,717 |
Accrued taxes | 28,704 | 27,476 | (17,504) | 12,683 |
Other current assets and liabilities | 81,625 | 3,163 | (12,982) | (47,905) |
Changes in undistributed stock compensation | 2,597 | 2,118 | 5,834 | 5,695 |
AFUDC | (960) | (229) | (4,358) | (2,050) |
Changes in other assets and deferred charges | (18,238) | (1,998) | (23,289) | (17,655) |
Changes in other liabilities and deferred credits | (2,977) | 17,887 | 16,805 | 20,230 |
Net cash provided by operating activities | 170,371 | 164,910 | 387,963 | 326,493 |
CASH FLOW FROM INVESTING ACTIVITIES: | ||||
Construction expenditures and property additions | (163,636) | (131,743) | (714,762) | (591,184) |
Changes in customer advances | 3,078 | 3,038 | 13,503 | 2,304 |
Miscellaneous inflows | (78) | 293 | (357) | 2,250 |
Net cash used in investing activities | (160,636) | (128,412) | (701,616) | (586,630) |
CASH FLOW FROM FINANCING ACTIVITIES: | ||||
Issuance of common stock, net | 0 | 0 | 0 | 41,359 |
Contributions from parent | 22,842 | 0 | 136,391 | 0 |
Dividends paid | (23,500) | (21,000) | (89,500) | (83,997) |
Issuance of long-term debt, net | 0 | 297,495 | 0 | 297,495 |
Change in credit facility and commercial paper | 0 | (111,000) | 111,000 | 24,000 |
Change in short-term debt | 36,000 | (191,000) | 188,000 | 0 |
Withholding remittance - share-based compensation | (1,838) | (2,852) | (2,096) | (3,510) |
Other | (53) | (298) | (783) | (371) |
Net cash provided by (used in) financing activities | 33,451 | (28,655) | 343,012 | 274,976 |
Change in cash and cash equivalents | 43,186 | 7,843 | 29,359 | 14,839 |
Cash and cash equivalents at beginning of period | 31,962 | 37,946 | 45,789 | 30,950 |
Cash and cash equivalents at end of period | 75,148 | 45,789 | 75,148 | 45,789 |
Supplemental information: | ||||
Interest paid, net of amounts capitalized | 11,585 | 10,296 | 75,094 | 66,097 |
Income taxes paid (received) | $ (22) | $ 0 | $ (5,878) | $ (7,816) |
Background, Organization, and S
Background, Organization, and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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). At the annual meeting of shareholders of Southwest Gas Holdings, Inc., held on May 2, 2019, shareholders voted to approve changing the state of incorporation for Southwest Gas Holdings, Inc. from California to Delaware. The reincorporation is expected to be effective during the second or third quarter of 2019. However, the reincorporation remains subject to certain regulatory approvals, which are currently pending. 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 from installation, replacement, repair, and maintenance of energy distribution systems, and developing industrial construction solutions. 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 November 2017, Centuri acquired Neuco, thereby expanding its core services in the northeast region of the U.S. Additionally, in November 2018, Centuri expanded its operations in the southeast region of the U.S. through the acquisition of an 80% interest in Linetec. See Note 12 – Business Acquisitions for more information. Basis of Presentation. The condensed consolidated financial statements for 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”). The year-end condensed balance sheet data was derived from audited financial statements. 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, or in the primary businesses comprising those segments as a result of the foregoing acquisitions of Neuco and Linetec. 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 statement of results for the interim periods, have been made. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the 2018 Annual Report to Shareholders, which is incorporated by reference into the 2018 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, derivatives, long-term debt outstanding, and assets of the qualified pension plan and postretirement benefit plans required to be disclosed at fair value. Other Property and Investments. Other property and investments on the Condensed Consolidated Balance Sheets includes (thousands of dollars): March 31, 2019 December 31, 2018 Southwest Gas Corporation: Net cash surrender value of COLI policies $ 122,048 $ 114,405 Other property 1,735 1,741 Total Southwest Gas Corporation 123,783 116,146 Centuri property, equipment, and intangibles 894,739 792,191 Centuri accumulated depreciation/amortization (316,832 ) (298,939 ) Other property 15,032 14,153 Total Southwest Gas Holdings, Inc. $ 716,722 $ 623,551 Cash and Cash Equivalents. For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and financial instruments with maturities of three months or less. Such investments are carried at cost, which approximates market value. Cash and cash equivalents for Southwest and the Company also include money market fund investments totaling approximately $41 million and $54.4 million , respectively, at March 31, 2019 , and $18 million and $59.9 million , respectively, at December 31, 2018 , 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 for Southwest include customer advances applied as contributions toward utility construction activity and capital expenditures that were not paid as of quarter end that are included in accounts payable. Amounts related to such activities were immaterial for the periods presented herein. Non-cash investing activities for the three months and twelve months ended March 31, 2019 included $73.5 million of purchase consideration related to the Linetec acquisition by Centuri, in the form of liabilities incurred that remained unpaid as of March 31, 2019 ; such amounts are included in Other current liabilities on the Condensed Consolidated Balance Sheets of the Company. Also, see Recent Accounting Standards Updates and Note 4 – Leases for information related to right-of-use assets obtained in exchange for lease liabilities, which are non-cash investing and financing activities. Intercompany Transactions . Centuri recognizes revenues generated from contracts with Southwest (see Note 10 – Segment Information ). Centuri’s accounts receivable for these services are presented in the table below (thousands of dollars): March 31, 2019 December 31, 2018 Centuri accounts receivable for services provided to Southwest $ 16,837 $ 18,830 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. Income Taxes. In 2017, the Tax Cuts and Jobs Act (the “TCJA”) was enacted. The TCJA had significant impacts on the taxation of business entities, including specific provisions related to regulated public utilities. The more significant changes that impacted the Company and Southwest include the reduction in the corporate federal income tax rate from 35% to 21%, and limiting the utilization of net operating losses (“NOLs”) to 80% of taxable income, with the ability to indefinitely carryforward unutilized NOLs to reduce future taxable income. Prepaid and Other Current Assets. Prepaid and other current assets includes gas pipe materials and operating supplies of $55 million at March 31, 2019 and $56 million at December 31, 2018 (carried at weighted average cost), as well as $55 million at March 31, 2019 and $74 million at December 31, 2018 related to a regulatory asset associated with the Arizona decoupling mechanism (an alternative revenue program). 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 its segments and reporting units remain consistent between periods presented below, and that no change was necessary with regard to the level at which goodwill is assessed for impairment. No impairment was deemed to have occurred in the first three months of 2019 . (Thousands of dollars) Natural Gas Operations Utility Infrastructure Services Total Company December 31, 2018 $ 10,095 $ 348,950 $ 359,045 Measurement Period Adjustment - Linetec acquisition — 3,303 3,303 Foreign currency translation adjustment — 2,134 2,134 March 31, 2019 $ 10,095 $ 354,387 $ 364,482 Other Current Liabilities . Other current liabilities for Southwest include $22.8 million of dividends declared by Southwest Gas Corporation, but not yet paid to Southwest Gas Holdings, Inc. at March 31, 2019 . Other Income (Deductions). The following table provides the composition of significant items included in Other income (deductions) in the Condensed Consolidated Statements of Income (thousands of dollars): Three Months Ended Twelve Months Ended March 31, March 31, 2019 2018 2019 2018 Southwest Gas Corporation - natural gas operations segment: Change in COLI policies $ 7,600 $ (700 ) $ 5,100 $ 6,800 Interest income 1,597 1,418 6,199 3,638 Equity AFUDC 960 229 4,358 2,049 Other components of net periodic benefit cost (3,765 ) (5,265 ) (19,560 ) (19,834 ) Miscellaneous income and (expense) (446 ) (285 ) (2,788 ) (2,400 ) Southwest Gas Corporation - total other income (deductions) 5,946 (4,603 ) (6,691 ) (9,747 ) Utility infrastructure services segment: Interest income — 1 87 4 Foreign transaction gain (loss) 531 147 162 (606 ) Miscellaneous income and (expense) 344 115 125 956 Centuri - total other income (deductions) 875 263 374 354 Corporate and administrative 18 6 64 19 Consolidated Southwest Gas Holdings, Inc. - total other income (deductions) $ 6,839 $ (4,334 ) $ (6,253 ) $ (9,374 ) Included in the table above is the change in cash surrender values of company-owned life insurance (“COLI”) policies (including net death benefits recognized). 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. 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 also to Note 2 – Components of Net Periodic Benefit Cost . Recent Accounting Standards Updates. Accounting pronouncements adopted in 2019: In February 2016, the FASB issued the update “Leases (Topic 842).” Under the update, lessees were required to recognize a lease liability for the obligation to make lease payments, measured on a discounted basis; and a right-of-use asset for the right to use, or control the use of, a specified asset for the lease term. The Company and Southwest adopted Topic 842 in the first quarter of 2019 through an optional transition method, which was elected, permitting the application of the provisions of the standard at the adoption date, rather than to earlier comparative periods. As a result, the Company and Southwest have not recast prior periods to reflect the adoption of this standard. See Note 4 – Leases . Accounting pronouncements that will be effective after 2019: In June 2016, the FASB issued ASU 2016-13 update “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The update requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The inputs currently used to estimate credit losses will still be used; however, they may be adapted to reflect the full amount of expected losses. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this update earlier as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is evaluating what impact, if any, this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures. In January 2017, the FASB issued ASU 2017-04 “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Currently, unless meeting the criteria for qualitative assessment only, an entity is required to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit, requiring a hypothetical purchase price allocation to measure the amount of a goodwill impairment. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. Under the update, an entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment. The amount of any goodwill impairment calculated under the update could vary from the calculation under existing guidance, largely due to the consideration to be given to unrecognized differences between the fair value and carrying values of the other assets and liabilities in the reporting unit under the new guidance. The amendments should be applied on a prospective basis. The update is effective for fiscal and interim periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Management is evaluating the impacts this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures. In August 2018, the FASB issued ASU 2018-15 “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The update generally aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement (that is a service contract) with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update also requires the entity to expense the capitalized implementation costs of such hosting arrangements over the term of the hosting arrangement, including reasonably certain renewal periods. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption of the amendments in this update is permitted for interim and related annual fiscal periods after December 15, 2018. Management is evaluating the impacts this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures. In August 2018, the FASB issued ASU 2018-14 “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” This update removes disclosures that are no longer considered cost-beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. The update applies to all employers that sponsor defined benefit pension or other postretirement plans. The update is effective for fiscal years ending after December 15, 2020. Upon adoption, the Company and Southwest will modify their disclosures to conform to the requirements of the update. |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost | 3 Months Ended |
Mar. 31, 2019 | |
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 are components of an overhead loading process associated with the cost of labor. The overhead process ultimately results in allocation of that portion of overall net periodic benefit costs 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 the Company and Southwest. Qualified Retirement Plan Period Ended March 31, Three Months Twelve Months 2019 2018 2019 2018 (Thousands of dollars) Service cost $ 6,466 $ 7,139 $ 27,882 $ 24,683 Interest cost 12,252 11,043 45,383 45,606 Expected return on plan assets (15,061 ) (14,689 ) (59,127 ) (56,086 ) Amortization of net actuarial loss 5,589 8,029 29,675 26,032 Net periodic benefit cost $ 9,246 $ 11,522 $ 43,813 $ 40,235 SERP Period Ended March 31, Three Months Twelve Months 2019 2018 2019 2018 (Thousands of dollars) Service cost $ 66 $ 61 $ 250 $ 292 Interest cost 440 415 1,683 1,827 Amortization of net actuarial loss 255 375 1,382 1,456 Net periodic benefit cost $ 761 $ 851 $ 3,315 $ 3,575 PBOP Period Ended March 31, Three Months Twelve Months 2019 2018 2019 2018 (Thousands of dollars) Service cost $ 319 $ 368 $ 1,424 $ 1,469 Interest cost 762 687 2,823 3,111 Expected return on plan assets (789 ) (930 ) (3,577 ) (3,448 ) Amortization of prior service costs 317 334 1,318 1,335 Net periodic benefit cost $ 609 $ 459 $ 1,988 $ 2,467 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 3 – Revenue The following information about the Company’s revenues is presented by segment. Southwest encompasses one segment – natural gas operations. 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 Twelve Months Ended March 31, March 31, (Thousands of dollars) 2019 2018 2019 2018 Residential $ 417,228 $ 344,611 $ 959,837 $ 859,078 Small commercial 89,610 87,943 256,750 250,331 Large commercial 13,962 15,440 51,714 54,224 Industrial/other 6,478 6,510 23,457 23,085 Transportation 24,902 24,054 87,838 89,081 Revenue from contracts with customers 552,180 478,558 1,379,596 1,275,799 Alternative revenue program revenues (deferrals) (34,545 ) 27,209 (15,775 ) 66,788 Other revenues (a) 3,042 (11,454 ) 20,271 (8,568 ) Total Gas operating revenues $ 520,677 $ 494,313 $ 1,384,092 $ 1,334,019 (a) Includes various other revenues which, in the periods presented ending March 31, 2018, were offset by a $14 million reserve against revenue associated with a tax reform savings adjustment. 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: (Thousands of dollars) Three Months Ended Twelve Months Ended March 31, March 31, 2019 2018 2019 2018 Service Types: Gas infrastructure services $ 197,893 $ 193,527 $ 1,128,048 $ 938,342 Electric power infrastructure services 52,301 5,402 79,528 19,893 Other 62,668 61,088 367,554 356,131 Total Utility infrastructure services revenues $ 312,862 $ 260,017 $ 1,575,130 $ 1,314,366 (Thousands of dollars) Three Months Ended Twelve Months Ended March 31, March 31, 2019 2018 2019 2018 Contract Types: Master services agreement $ 235,655 $ 194,464 $ 1,143,603 $ 932,804 Bid contract 77,207 65,553 431,527 381,562 Total Utility infrastructure services revenues $ 312,862 $ 260,017 $ 1,575,130 $ 1,314,366 Unit priced contracts $ 235,686 $ 197,322 $ 1,296,783 $ 1,013,642 Fixed priced contracts 38,538 25,541 130,295 137,724 Time and materials contracts 38,638 37,154 148,052 163,000 Total Utility infrastructure services revenues $ 312,862 $ 260,017 $ 1,575,130 $ 1,314,366 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, as well as amounts billed in excess of revenue earned on contracts (contract liability), which are included in Other current liabilities as of March 31, 2019 and December 31, 2018 on the Company’s Condensed Consolidated Balance Sheets: (Thousands of dollars) March 31, 2019 December 31, 2018 Contracts receivable, net $ 160,973 $ 186,249 Revenue earned on contracts in progress in excess of billings 97,642 87,520 Amounts billed in excess of revenue earned on contracts 4,588 4,211 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 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 relates 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, 2018 to March 31, 2019 is due to revenue recognized of $4.2 million that was included in this item as of January 1, 2019, after which time it became earned and the balance was reduced, and to 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. Further, 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 March 31, 2019 , Centuri has seventeen contracts that had 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 March 31, 2019 is $60.7 million . Centuri expects to recognize the remaining performance obligations over the next three 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) March 31, 2019 December 31, 2018 Billed on completed contracts and contracts in progress $ 159,829 $ 184,100 Other receivables 1,527 2,588 Contracts receivable, gross 161,356 186,688 Allowance for doubtful accounts (383 ) (439 ) Contracts receivable, net $ 160,973 $ 186,249 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 4 – Leases The Company and Southwest adopted Topic 842 as of January 1, 2019. In association with the adoption, the Company recorded adjustments to its Condensed Consolidated Balance Sheet to record right-of-use (“ROU”) assets and lease liabilities of $58.4 million and $60.8 million , respectively. Included in those amounts, Southwest recorded $1.9 million related to both its ROU assets and lease liabilities. Neither the Company nor Southwest experienced a material impact to the Condensed Consolidated Statements of Income from the adoption and no cumulative-effect adjustment to the opening balance of retained earnings was recognized. Management elected to adopt the standard under the optional transition method (refer to Recent Accounting Standards Updates in Note 1 – Background, Organization, and Summary of Significant Accounting Policies ), and elected the following Topic 842 practical expedients and accounting policy elections: • To use the “package”, which is a set of three practical expedients that must be elected as a package and applied consistently to all of Southwest’s and Centuri’s leases. These include: not reassessing whether any expired or existing contracts are or contain leases; not reassessing the lease classification for expired or existing leases (that is, existing operating and capital leases in accordance with current lease guidance will in each case be classified as operating and finance leases, respectively, under the updated guidance); and not reassessing initial direct costs for any existing leases. • To utilize the practical expedient to exclude all easements in place prior to January 1, 2019 from treatment under Topic 842. However, Southwest will evaluate new easements entered into after the effective date of the standard to determine if the arrangements should be accounted for as leases. • To make an accounting policy election by asset class to include both the lease and non-lease components (as defined in the guidance) as a single component. • To make an accounting policy election to not apply Topic 842 to short-term leases, as permitted. • To not elect to use hindsight in determining the lease term and in assessing impairment of ROU assets. • To utilize a portfolio approach to effectively account for the operating lease ROU assets and liabilities with regard to certain equipment leases at Centuri. Southwest and Centuri determine if an arrangement is a lease at inception. ROU assets represent the right to use an underlying asset for the lease term; lease liabilities represent obligations to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of Southwest’s and Centuri’s leases do not provide an implicit interest rate, an incremental borrowing rate based on information available at commencement is used in determining the present value of lease payments; an implicit rate, if readily determinable, is used. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Southwest’s leases are comprised primarily of operating leases of buildings, land, and equipment. Southwest has no finance leases and no significant short-term leases. Southwest’s leases have a remaining term of 1 to 10 years , some of which include options to extend the lease up to 3 years . Southwest is currently not a lessor in any significant lease arrangements. Southwest’s ROU assets are included in Gas plant, and its lease liabilities are included in, depending upon maturity, Other current liabilities or Other deferred credits and other long-term liabilities on the Company’s and Southwest’s Condensed Consolidated Balance Sheet as of March 31, 2019. Centuri has operating and finance leases for corporate and field offices, construction equipment, and transportation vehicles. Centuri is currently not a lessor in any significant lease arrangements. Centuri’s leases have remaining lease terms of 1 to 14 years . Some of these include options to extend the leases, generally for optional terms of up to 5 years , and some include options to terminate the leases within 1 year . Centuri’s equipment leases may include variable payment terms in addition to the fixed lease payments if machinery is used in excess of the standard work periods. These variable payments are not probable of occurring under the current operating environment and have not been included in consideration of lease payments. Expense for short-term leases of Centuri during the quarter ended March 31, 2019 was $2.6 million , and such leases were not accounted for under the provisions of Topic 842, as permitted. Due to the seasonality of Centuri’s business, expense for short-term leases will fluctuate throughout the year with higher expense incurred during the warmer months. Centuri’s ROU assets are included in Other property and investments, and its lease liabilities for operating and finance leases are included, depending upon maturity, in Other current liabilities or Other deferred credits and other long-term liabilities on the Company’s Condensed Consolidated Balance Sheet as of March 31, 2019 . The components of lease expense were as follows: (Thousands of dollars) Three Months Ended March 31, 2019 Southwest: Operating lease cost $ 406 Centuri: Operating lease cost $ 2,805 Finance lease cost: Amortization of ROU assets $ 35 Interest on lease liabilities 7 Total finance lease cost 42 Short-term lease cost 2,575 Total lease cost $ 5,828 Supplemental cash flow information related to leases for the three months ended March 31, 2019 was as follows: (Thousands of dollars) Southwest Centuri Consolidated Total Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 396 $ 2,555 $ 2,951 Operating cash flows from finance leases — 7 7 Financing cash flows from finance leases — 51 51 ROU assets obtained in exchange for lease obligations: Operating leases $ 523 $ 2,321 $ 2,844 Finance leases — 84 84 Supplemental information related to leases, including location in the Condensed Consolidated Balance Sheets, is as follows: (Thousands of dollars) March 31, 2019 Southwest: Operating leases: Net Utility Plant $ 1,977 Other current liabilities $ 745 Other deferred credits and other long-term liabilities 1,253 Total operating lease liabilities $ 1,998 Weighted average remaining lease term (in years) 4.22 Weighted average discount rate 3.39 % Centuri: Operating leases: Other property and investments $ 57,267 Other current liabilities 7,178 Other deferred credits and other long-term liabilities 52,647 Total operating lease liabilities $ 59,825 Finance leases: Other property and investments $ 639 Other current liabilities 256 Other deferred credits and other long-term liabilities 239 Total finance lease liabilities $ 495 Weighted average remaining lease term (in years) Operating leases 9.33 Finance leases 1.63 Weighted average discount rate Operating leases 4.08 % Finance leases 5.84 % The following is a schedule of maturities of lease liabilities as of March 31, 2019 : (Thousands of dollars) Operating leases Southwest: 2020 $ 800 2021 556 2022 295 2023 124 2024 78 Thereafter 307 Total lease payments 2,160 Less imputed interest 162 Total $ 1,998 (Thousands of dollars) Operating leases Finance leases Centuri: 2020 $ 10,394 $ 281 2021 9,327 128 2022 8,328 67 2023 7,645 38 2024 5,710 25 Thereafter 31,303 — Total lease payments 72,707 539 Less imputed interest 12,882 44 Total $ 59,825 $ 495 As the Company and Southwest adopted Topic 842 using the optional transition method referred to in Note 1 – Background, Organization, and Summary of Significant Accounting Policies , the recent annual disclosure of rental and lease payments as of December 31, 2018 in accordance with Topic 840 is presented in the table below: 2018 2017 Southwest Gas Corporation $ 4,556 $ 4,926 Centuri 59,491 62,310 Consolidated rental payments/lease expense $ 64,047 $ 67,236 The following is a schedule of future minimum lease payments for operating leases (with initial or remaining terms in excess of one year) as of December 31, 2018 (thousands of dollars): Southwest Centuri Consolidated Total 2019 $ 898 $ 10,053 $ 10,951 2020 363 7,656 8,019 2021 299 5,760 6,059 2022 163 5,163 5,326 2023 79 3,681 3,760 Thereafter 177 10,511 10,688 Total minimum lease payments $ 1,979 $ 42,824 $ 44,803 |
Leases | Note 4 – Leases The Company and Southwest adopted Topic 842 as of January 1, 2019. In association with the adoption, the Company recorded adjustments to its Condensed Consolidated Balance Sheet to record right-of-use (“ROU”) assets and lease liabilities of $58.4 million and $60.8 million , respectively. Included in those amounts, Southwest recorded $1.9 million related to both its ROU assets and lease liabilities. Neither the Company nor Southwest experienced a material impact to the Condensed Consolidated Statements of Income from the adoption and no cumulative-effect adjustment to the opening balance of retained earnings was recognized. Management elected to adopt the standard under the optional transition method (refer to Recent Accounting Standards Updates in Note 1 – Background, Organization, and Summary of Significant Accounting Policies ), and elected the following Topic 842 practical expedients and accounting policy elections: • To use the “package”, which is a set of three practical expedients that must be elected as a package and applied consistently to all of Southwest’s and Centuri’s leases. These include: not reassessing whether any expired or existing contracts are or contain leases; not reassessing the lease classification for expired or existing leases (that is, existing operating and capital leases in accordance with current lease guidance will in each case be classified as operating and finance leases, respectively, under the updated guidance); and not reassessing initial direct costs for any existing leases. • To utilize the practical expedient to exclude all easements in place prior to January 1, 2019 from treatment under Topic 842. However, Southwest will evaluate new easements entered into after the effective date of the standard to determine if the arrangements should be accounted for as leases. • To make an accounting policy election by asset class to include both the lease and non-lease components (as defined in the guidance) as a single component. • To make an accounting policy election to not apply Topic 842 to short-term leases, as permitted. • To not elect to use hindsight in determining the lease term and in assessing impairment of ROU assets. • To utilize a portfolio approach to effectively account for the operating lease ROU assets and liabilities with regard to certain equipment leases at Centuri. Southwest and Centuri determine if an arrangement is a lease at inception. ROU assets represent the right to use an underlying asset for the lease term; lease liabilities represent obligations to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of Southwest’s and Centuri’s leases do not provide an implicit interest rate, an incremental borrowing rate based on information available at commencement is used in determining the present value of lease payments; an implicit rate, if readily determinable, is used. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Southwest’s leases are comprised primarily of operating leases of buildings, land, and equipment. Southwest has no finance leases and no significant short-term leases. Southwest’s leases have a remaining term of 1 to 10 years , some of which include options to extend the lease up to 3 years . Southwest is currently not a lessor in any significant lease arrangements. Southwest’s ROU assets are included in Gas plant, and its lease liabilities are included in, depending upon maturity, Other current liabilities or Other deferred credits and other long-term liabilities on the Company’s and Southwest’s Condensed Consolidated Balance Sheet as of March 31, 2019. Centuri has operating and finance leases for corporate and field offices, construction equipment, and transportation vehicles. Centuri is currently not a lessor in any significant lease arrangements. Centuri’s leases have remaining lease terms of 1 to 14 years . Some of these include options to extend the leases, generally for optional terms of up to 5 years , and some include options to terminate the leases within 1 year . Centuri’s equipment leases may include variable payment terms in addition to the fixed lease payments if machinery is used in excess of the standard work periods. These variable payments are not probable of occurring under the current operating environment and have not been included in consideration of lease payments. Expense for short-term leases of Centuri during the quarter ended March 31, 2019 was $2.6 million , and such leases were not accounted for under the provisions of Topic 842, as permitted. Due to the seasonality of Centuri’s business, expense for short-term leases will fluctuate throughout the year with higher expense incurred during the warmer months. Centuri’s ROU assets are included in Other property and investments, and its lease liabilities for operating and finance leases are included, depending upon maturity, in Other current liabilities or Other deferred credits and other long-term liabilities on the Company’s Condensed Consolidated Balance Sheet as of March 31, 2019 . The components of lease expense were as follows: (Thousands of dollars) Three Months Ended March 31, 2019 Southwest: Operating lease cost $ 406 Centuri: Operating lease cost $ 2,805 Finance lease cost: Amortization of ROU assets $ 35 Interest on lease liabilities 7 Total finance lease cost 42 Short-term lease cost 2,575 Total lease cost $ 5,828 Supplemental cash flow information related to leases for the three months ended March 31, 2019 was as follows: (Thousands of dollars) Southwest Centuri Consolidated Total Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 396 $ 2,555 $ 2,951 Operating cash flows from finance leases — 7 7 Financing cash flows from finance leases — 51 51 ROU assets obtained in exchange for lease obligations: Operating leases $ 523 $ 2,321 $ 2,844 Finance leases — 84 84 Supplemental information related to leases, including location in the Condensed Consolidated Balance Sheets, is as follows: (Thousands of dollars) March 31, 2019 Southwest: Operating leases: Net Utility Plant $ 1,977 Other current liabilities $ 745 Other deferred credits and other long-term liabilities 1,253 Total operating lease liabilities $ 1,998 Weighted average remaining lease term (in years) 4.22 Weighted average discount rate 3.39 % Centuri: Operating leases: Other property and investments $ 57,267 Other current liabilities 7,178 Other deferred credits and other long-term liabilities 52,647 Total operating lease liabilities $ 59,825 Finance leases: Other property and investments $ 639 Other current liabilities 256 Other deferred credits and other long-term liabilities 239 Total finance lease liabilities $ 495 Weighted average remaining lease term (in years) Operating leases 9.33 Finance leases 1.63 Weighted average discount rate Operating leases 4.08 % Finance leases 5.84 % The following is a schedule of maturities of lease liabilities as of March 31, 2019 : (Thousands of dollars) Operating leases Southwest: 2020 $ 800 2021 556 2022 295 2023 124 2024 78 Thereafter 307 Total lease payments 2,160 Less imputed interest 162 Total $ 1,998 (Thousands of dollars) Operating leases Finance leases Centuri: 2020 $ 10,394 $ 281 2021 9,327 128 2022 8,328 67 2023 7,645 38 2024 5,710 25 Thereafter 31,303 — Total lease payments 72,707 539 Less imputed interest 12,882 44 Total $ 59,825 $ 495 As the Company and Southwest adopted Topic 842 using the optional transition method referred to in Note 1 – Background, Organization, and Summary of Significant Accounting Policies , the recent annual disclosure of rental and lease payments as of December 31, 2018 in accordance with Topic 840 is presented in the table below: 2018 2017 Southwest Gas Corporation $ 4,556 $ 4,926 Centuri 59,491 62,310 Consolidated rental payments/lease expense $ 64,047 $ 67,236 The following is a schedule of future minimum lease payments for operating leases (with initial or remaining terms in excess of one year) as of December 31, 2018 (thousands of dollars): Southwest Centuri Consolidated Total 2019 $ 898 $ 10,053 $ 10,951 2020 363 7,656 8,019 2021 299 5,760 6,059 2022 163 5,163 5,326 2023 79 3,681 3,760 Thereafter 177 10,511 10,688 Total minimum lease payments $ 1,979 $ 42,824 $ 44,803 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 5 – Derivatives In managing its natural gas supply portfolios, Southwest has historically entered into fixed- and variable-price contracts, which qualify as derivatives. Additionally, Southwest utilizes fixed-for-floating swap contracts (“Swaps”) to supplement its fixed-price contracts. The fixed-price contracts, firm commitments to purchase a fixed amount of gas in the future at a fixed price, qualify for the normal purchases and normal sales exception that is allowed for contracts that are probable of delivery in the normal course of business, and are exempt from fair value reporting. The variable-price contracts qualify as derivative instruments; however, because the contract price is the prevailing price at the future transaction date, the contract has no determinable fair value. The Swaps’ contract prices are determined at the beginning of each month to reflect that month’s published first of month index price and are recorded at fair value. Southwest does not utilize derivative financial instruments for speculative purposes, nor does it have trading operations. The fixed-price contracts and Swaps are utilized by Southwest under its volatility mitigation programs to effectively fix the price on a portion (up to 25% in the Arizona and California jurisdictions) of its natural gas supply portfolios. The maturities of the Swaps highly correlate to forecasted purchases of natural gas, during time frames ranging from April 30, 2019 through October 31, 2020 . Under such contracts, Southwest pays the counterparty a fixed rate and receives from the counterparty a floating rate per MMBtu (“dekatherm”) of natural gas. Only the net differential is actually paid or received. The differential is calculated based on the notional amounts under the contracts, which are detailed in the table below (thousands of dekatherms): March 31, 2019 December 31, 2018 Contract notional amounts 14,757 13,387 The following table sets forth the gains and (losses) recognized on the Swaps (derivatives) for the three- and twelve-month periods ended March 31, 2019 and 2018 and their location in the Condensed Consolidated Statements of Income for both the Company and Southwest: Gains (losses) recognized in income for derivatives not designated as hedging instruments: (Thousands of dollars) Three Months Ended Twelve Months Ended Location of Gain or (Loss) Recognized in Income on Derivatives March 31, March 31, Instrument 2019 2018 2019 2018 Swaps Net cost of gas sold $ (3,533 ) $ (5,196 ) $ (450 ) $ (11,631 ) Swaps Net cost of gas sold 3,533 * 5,196 * 450 * 11,631 * Total $ — $ — $ — $ — * Represents the impact of regulatory deferral accounting treatment under U.S. GAAP for rate-regulated entities. No gains (losses) were recognized in net income or other comprehensive income during the periods presented for derivatives designated as cash flow hedging instruments. Previously, Southwest entered into two forward-starting interest rate swaps (“FSIRS”), both of which were designated cash flow hedges, to partially hedge the risk of interest rate variability during the period leading up to the planned issuance of debt. The first FSIRS terminated in December 2010. The second FSIRS terminated in March 2012. Losses on both FSIRS are being amortized over ten -year periods from Accumulated other comprehensive income (loss) into interest expense. The following table sets forth the fair values of the Swaps and their location in the Condensed Consolidated Balance Sheets for both the Company and Southwest (thousands of dollars): Fair values of derivatives not designated as hedging instruments: March 31, 2019 Asset Liability Instrument Balance Sheet Location Derivatives Derivatives Net Total Swaps Other current liabilities $ 805 $ (4,472 ) $ (3,667 ) Swaps Other deferred credits 60 (809 ) (749 ) Total $ 865 $ (5,281 ) $ (4,416 ) December 31, 2018 Asset Liability Instrument Balance Sheet Location Derivatives Derivatives Net Total Swaps Prepaid and other current assets $ 243 $ (99 ) $ 144 Swaps Other current liabilities 1,595 (3,347 ) (1,752 ) Swaps Other deferred credits 141 (251 ) (110 ) Total $ 1,979 $ (3,697 ) $ (1,718 ) The estimated fair values of the natural gas derivatives were determined using future natural gas index prices (as more fully described below). Master netting arrangements exist with each counterparty that provide for the net settlement (in the settlement month) of all contracts through a single payment. As applicable, management has elected to reflect the net amounts in its balance sheets. There was no outstanding collateral associated with the Swaps during either period shown in the above table. Pursuant to regulatory deferral accounting treatment for rate-regulated entities, unrealized gains and losses in fair value of the Swaps are recorded as a regulatory asset and/or liability. When the Swaps mature, any prior positions held are reversed and the settled position is recorded as an increase or decrease of purchased gas under the related purchase gas adjustment (“PGA”) mechanism in determining the deferred PGA balances. Neither changes in fair value nor settled amounts of Swaps have a direct effect on earnings or other comprehensive income. The following table shows the amounts Southwest paid to and received from counterparties for settlements of matured Swaps. Three Months Ended Twelve Months Ended (Thousands of dollars) March 31, 2019 March 31, 2019 Paid to counterparties $ 1,882 $ 5,948 Received from counterparties $ 1,047 $ 1,653 The following table details the regulatory assets/(liabilities) offsetting the derivatives at fair value in the Condensed Consolidated Balance Sheets for both the Company and Southwest (thousands of dollars). March 31, 2019 Instrument Balance Sheet Location Net Total Swaps Prepaid and other current assets $ 3,667 Swaps Deferred charges and other assets 749 December 31, 2018 Instrument Balance Sheet Location Net Total Swaps Other current liabilities $ (144 ) Swaps Prepaid and other current assets 1,752 Swaps Deferred charges and other assets 110 The estimated fair values of Southwest’s Swaps were determined at March 31, 2019 and December 31, 2018 using futures settlement prices for the delivery of natural gas at Henry Hub adjusted by the price of future settlement bases, which reflect the difference between the price of natural gas at a given delivery basin and the Henry Hub pricing points. These Level 2 inputs are observable in the marketplace throughout the full term of the Swaps, but have been credit-risk adjusted with no significant impact to the overall fair value measurement. The following table sets forth, by level within the three-level fair value hierarchy that ranks the inputs used to measure fair value by their reliability, the financial assets and liabilities that were accounted for at fair value by both the Company and Southwest: Level 2 - Significant other observable inputs (Thousands of dollars) March 31, 2019 December 31, 2018 Assets at fair value: Prepaid and other current assets - Swaps $ — $ 144 Liabilities at fair value: Other current liabilities - Swaps (3,667 ) (1,752 ) Other deferred credits - Swaps (749 ) (110 ) Net Assets (Liabilities) $ (4,416 ) $ (1,718 ) |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Common Stock | Note 6 – Common Stock On March 29, 2017, the Company filed with the SEC an automatic shelf registration statement on Form S-3 (File No. 333-217018), which became effective upon filing, for the offer and sale of up to $150 million of common stock from time to time in at-the-market offerings under the prospectus included therein and in accordance with the Sales Agency Agreement, dated March 29, 2017, between the Company and BNY Mellon Capital Markets, LLC (the “Equity Shelf Program”). The following table provides activity in the Equity Shelf Program for the three and twelve months ended March 31, 2019 : Three Months Ended Twelve Months Ended March 31, March 31, 2019 2018 2019 2018 Gross proceeds $ 23,073,149 $ 9,199,661 $ 99,023,464 $ 50,976,456 Less: agent commissions (230,731 ) (91,997 ) (990,234 ) (509,765 ) Net proceeds $ 22,842,418 $ 9,107,664 $ 98,033,230 $ 50,466,691 Number of shares sold 277,829 137,300 1,286,234 643,007 Weighted average price per share $ 83.05 $ 67.00 $ 76.99 $ 79.28 During the quarter ended March 31, 2019 , the Company sold all of the remaining common stock available for sale under the program. Net proceeds from the sales 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. Net proceeds during the three months ended March 31, 2019 were contributed to, and reflected in the records of, Southwest (as a capital contribution from Southwest Gas Holdings, Inc.). During the three months ended March 31, 2019 , the Company issued approximately 53,000 shares of common stock through the Restricted Stock/Unit Plan and Management Incentive Plan. Also during the three months ended March 31, 2019 , the Company issued 34,000 shares of common stock through the Dividend Reinvestment and Stock Purchase Plan (“DRSPP”), raising approximately $2.8 million . On May 2, 2019, at the Company’s annual meeting of shareholders, the Company’s shareholders approved an amendment to the Company’s Articles of Incorporation to increase the number of shares of common stock available for issuance from 60,000,000 to 120,000,000 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 7 – Long-Term Debt Carrying amounts of long-term debt and related estimated fair values as of March 31, 2019 and December 31, 2018 are disclosed in the following table. Southwest’s revolving credit facility (including commercial paper) and the variable-rate Industrial Development Revenue Bonds (“IDRBs”) approximate their carrying values, as they are repaid quickly (in the case of credit facility borrowings) and have interest rates that reset frequently. These are categorized as Level 1 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, senior notes, and fixed-rate IDRBs were determined utilizing a market-based valuation approach, where fair values are determined based on evaluated pricing data, such as broker quotes and yields for similar securities adjusted for observable differences. Significant inputs used in the valuation generally include benchmark yield curves, credit ratings and issuer spreads. The external credit rating, coupon rate, and maturity of each security are considered in the valuation, as applicable. The fair values of debentures and fixed-rate IDRBs are categorized as Level 2 (observable market inputs based on market prices of similar securities). The Centuri secured revolving credit and term loan facility and Centuri other debt obligations (not actively traded) are categorized as Level 3, based on significant unobservable inputs to their fair values. Because Centuri’s debt is not publicly traded, fair values for the secured revolving credit and term loan facility and other debt obligations were based on a conventional discounted cash flow methodology and utilized current market pricing yield curves, across Centuri’s debt maturity spectrum, of other industrial bonds with an assumed credit rating comparable to the Company’s. March 31, 2019 December 31, 2018 Carrying Amount Market Value Carrying Amount Market Value (Thousands of dollars) Southwest Gas Corporation: Debentures: Notes, 4.45%, due 2020 $ 125,000 $ 126,990 $ 125,000 $ 126,213 Notes, 6.1%, due 2041 125,000 154,294 125,000 150,728 Notes, 3.875%, due 2022 250,000 255,015 250,000 254,195 Notes, 4.875%, due 2043 250,000 277,683 250,000 268,985 Notes, 3.8%, due 2046 300,000 283,635 300,000 267,030 Notes, 3.7%, due 2028 300,000 306,465 300,000 298,926 8% Series, due 2026 75,000 95,128 75,000 93,827 Medium-term notes, 7.78% series, due 2022 25,000 27,715 25,000 27,497 Medium-term notes, 7.92% series, due 2027 25,000 30,824 25,000 30,016 Medium-term notes, 6.76% series, due 2027 7,500 8,845 7,500 8,651 Unamortized discount and debt issuance costs (11,641 ) (11,807 ) 1,470,859 1,470,693 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 (1,900 ) (2,024 ) 198,100 197,976 Less: current maturities — — Long-term debt, less current maturities - Southwest Gas Corporation $ 1,818,959 $ 1,818,669 Centuri: Centuri term loan facility $ 254,534 $ 257,579 $ 255,959 $ 260,135 Unamortized debt issuance costs (1,343 ) (1,414 ) 253,191 254,545 Centuri secured revolving credit facility 6,361 6,363 — — Centuri other debt obligations 62,678 63,365 67,104 67,053 Less: current maturities (34,915 ) (33,060 ) Long-term debt, less current maturities - Centuri $ 287,315 $ 288,589 Consolidated Southwest Gas Holdings, Inc.: Southwest Gas Corporation long-term debt $ 1,818,959 $ 1,818,669 Centuri long-term debt 322,230 321,649 Less: current maturities (34,915 ) (33,060 ) Long-term debt, less current maturities - Southwest Gas Holdings, Inc. $ 2,106,274 $ 2,107,258 Southwest has a $400 million credit facility that is scheduled to expire in March 2022 . Southwest designates $150 million of capacity related to the facility as long-term debt and has designated the remaining $250 million for working capital purposes. Interest rates for the credit facility are calculated at either the London Interbank Offered Rate (“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 March 31, 2019 , 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 March 31, 2019 , $150 million was outstanding on the long-term portion (including the commercial paper program, discussed below) and $188 million was outstanding on the short-term portion of this credit facility (see Note 8 – Short-Term Debt ). Southwest has a $50 million commercial paper program. Any issuance under the commercial paper program is supported by Southwest’s current revolving credit facility and, therefore, does not represent additional borrowing capacity under the credit facility. Borrowings under the commercial paper program are designated as long-term debt. Interest rates for the program are calculated at the then current commercial paper rate. At March 31, 2019 , as noted above, $50 million was outstanding under the commercial paper program. In November 2018, Centuri, in association with the acquisition of Linetec, amended and restated its senior secured revolving credit and term loan facility, increasing the capacity from $450 million to $590 million ; the amended facility is scheduled to expire in November 2023 . This facility includes a revolving credit facility and a term loan facility. The line of credit portion of the facility is $325 million ; amounts borrowed and repaid under the revolving credit facility are available to be re-borrowed. The term loan facility portion has a limit of approximately $265 million . The $590 million revolving credit and term loan 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 assets securing the facility at March 31, 2019 totaled $1.1 billion . At March 31, 2019 , $261 million |
Short-Term Debt
Short-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-Term Debt | Note 8 – Short-Term Debt The Company has a $100 million credit facility that is scheduled to expire in March 2022 . The Company had no short-term borrowings outstanding at March 31, 2019 under this facility. As discussed in Note 7 – Long-Term Debt , Southwest has a $ 400 million credit facility that is scheduled to expire in March 2022 , of which $ 250 million has been designated by management for working capital purposes. Southwest had $ 188 million in short-term borrowings outstanding at March 31, 2019 |
Equity, Other Comprehensive Inc
Equity, Other Comprehensive Income, and Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Equity, Other Comprehensive Income, and Accumulated Other Comprehensive Income | Note 9 – Equity, Other Comprehensive Income, and Accumulated Other Comprehensive Income The tables below provide details of activity in equity, the noncontrolling interest, and the redeemable noncontrolling interest for the Company on a consolidated basis for the three-month periods ended March 31, 2019 and March 31, 2018. Southwest Gas Holdings, Inc. Equity (In thousands, except per share amounts) Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Non-controlling Interest Redeemable Noncontrolling Interest (Temporary Equity) Shares Amount Total December 31, 2018 53,026 $ 54,656 $ 1,305,769 $ (52,668 ) $ 944,285 $ (452 ) $ 2,251,590 $ 81,831 Common stock issuances 365 365 27,024 27,389 Net income (loss) 94,809 94,809 575 Foreign currency exchange translation adjustment 791 791 Other comprehensive income (loss): Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax 619 619 FSIRS amounts reclassified to net income, net of tax 635 635 Dividends declared Common: $0.545 per share (29,285 ) (29,285 ) March 31, 2019 53,391 $ 55,021 $ 1,332,793 $ (50,623 ) $ 1,009,809 $ (452 ) $ 2,346,548 $ 82,406 Southwest Gas Holdings, Inc. Equity Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Non-controlling Interest (In thousands, except per share amounts) Shares Amount Total December 31, 2017 48,090 $ 49,720 $ 955,332 $ (47,682 ) $ 857,398 $ (2,365 ) $ 1,812,403 Common stock issuances 247 247 10,148 10,395 Net income (loss) 79,091 (797 ) 78,294 Foreign currency exchange translation adjustment (911 ) (911 ) Other comprehensive income (loss): Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax 895 895 FSIRS amounts reclassified to net income, net of tax 635 635 Reclassification of excess deferred taxes (a) (9,300 ) 9,300 — Dividends declared Common: $0.52 per share (25,335 ) (25,335 ) March 31, 2018 48,337 $ 49,967 $ 965,480 $ (56,363 ) $ 920,454 $ (3,162 ) $ 1,876,376 (a) Reclassification for the release of excess deferred taxes as a result of the adoption of ASU No. 2018-02 “Income Statement—Reporting Comprehensive Income—Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which permitted release of excess amounts created following the December 2017 enactment of U.S. tax reform. The tables below provide details of activity in equity for Southwest during the three-month periods ended March 31, 2019 and March 31, 2018. Only equity shares of the Company are publicly traded, under the ticker symbol “SWX.” Southwest Gas Corporation Equity Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (In thousands) Shares Amount Total December 31, 2018 47,482 $ 49,112 $ 1,065,242 $ (49,049 ) $ 717,155 $ 1,782,460 Net income 103,389 103,389 Other comprehensive income (loss): Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax 619 619 FSIRS amounts reclassified to net income, net of tax 635 635 Stock-based compensation (a) 918 (160 ) 758 Dividends declared to Southwest Gas Holdings, Inc. (22,800 ) (22,800 ) Contributions from Southwest Gas Holdings, Inc. 22,842 22,842 March 31, 2019 47,482 $ 49,112 $ 1,089,002 $ (47,795 ) $ 797,584 $ 1,887,903 Southwest Gas Corporation Equity Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (In thousands) Shares Amount Total December 31, 2017 47,482 $ 49,112 $ 948,767 $ (47,073 ) $ 659,193 $ 1,609,999 Net income 90,349 90,349 Other comprehensive income (loss): Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax 895 895 FSIRS amounts reclassified to net income, net of tax 635 635 Reclassification of excess deferred taxes (b) (9,300 ) 9,300 — Stock-based compensation (a) (568 ) (166 ) (734 ) Dividends declared to Southwest Gas Holdings, Inc. (22,000 ) (22,000 ) March 31, 2018 47,482 $ 49,112 $ 948,199 $ (54,843 ) $ 736,676 $ 1,679,144 (a) Stock-based compensation is based on stock awards of Southwest Gas Corporation to be issued in shares of Southwest Gas Holdings, Inc. (b) Reclassification for the release of excess deferred taxes as a result of the adoption of ASU No. 2018-02, which permitted release of excess amounts created following the December 2017 enactment of U.S. tax reform. 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 in the Condensed Consolidated Balance Sheets and the associated column in the equity tables above. See Note 5 – Derivatives for additional information on the FSIRS. Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) (Thousands of dollars) Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 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 $ 317 $ (76 ) $ 241 $ 334 $ (80 ) $ 254 Amortization of net actuarial (gain)/loss 5,844 (1,403 ) 4,441 8,404 (2,017 ) 6,387 Regulatory adjustment (5,347 ) 1,284 (4,063 ) (7,560 ) 1,814 (5,746 ) Pension plans other comprehensive income 814 (195 ) 619 1,178 (283 ) 895 FSIRS (designated hedging activities): Amounts reclassified into net income 836 (201 ) 635 837 (202 ) 635 FSIRS other comprehensive income 836 (201 ) 635 837 (202 ) 635 Total other comprehensive income - Southwest Gas Corporation 1,650 (396 ) 1,254 2,015 (485 ) 1,530 Foreign currency translation adjustments: Translation adjustments 791 — 791 (911 ) — (911 ) Foreign currency other comprehensive income (loss) 791 — 791 (911 ) — (911 ) Total other comprehensive income - Southwest Gas Holdings, Inc. $ 2,441 $ (396 ) $ 2,045 $ 1,104 $ (485 ) $ 619 Twelve Months Ended Twelve Months Ended March 31, 2019 March 31, 2018 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) $ (20,426 ) $ 4,902 $ (15,524 ) $ (43,027 ) $ 10,326 $ (32,701 ) Amortization of prior service cost 1,318 (316 ) 1,002 1,335 (460 ) 875 Amortization of net actuarial (gain)/loss 31,057 (7,454 ) 23,603 27,488 (9,269 ) 18,219 Regulatory adjustment (6,020 ) 1,446 (4,574 ) 10,515 (115 ) 10,400 Pension plans other comprehensive income (loss) 5,929 (1,422 ) 4,507 (3,689 ) 482 (3,207 ) FSIRS (designated hedging activities): Amounts reclassified into net income 3,344 (803 ) 2,541 3,345 (1,155 ) 2,190 FSIRS other comprehensive income 3,344 (803 ) 2,541 3,345 (1,155 ) 2,190 Total other comprehensive income (loss) - Southwest Gas Corporation 9,273 (2,225 ) 7,048 (344 ) (673 ) (1,017 ) Foreign currency translation adjustments: Translation adjustments (1,308 ) — (1,308 ) 640 — 640 Foreign currency other comprehensive income (loss) (1,308 ) — (1,308 ) 640 — 640 Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. $ 7,965 $ (2,225 ) $ 5,740 $ 296 $ (673 ) $ (377 ) (1) Tax amounts are calculated using a 24% rate following the December 22, 2017 enactment date of U.S. tax reform. For periods prior to the enactment date (and included in specific line items of the tables for the twelve months ended March 31, 2018 ), tax amounts were calculated using a 38% rate. The tax effect of before-tax amounts remaining in the balance of Accumulated other comprehensive income (loss) as of March 31, 2019 is effectively computed using a 24% tax rate overall. With regard to foreign currency translation adjustments, the Company has elected to indefinitely reinvest the earnings of Centuri’s Canadian subsidiaries in Canada, thus preventing deferred taxes on such earnings. As a result of this assertion, the Company is not recognizing any tax effect or presenting a tax expense or benefit for the currency translation adjustment amount reported in Other comprehensive income (loss), as repatriation of earnings is not anticipated. Approximately $2.5 million of realized losses (net of tax) related to the FSIRS, reported in Accumulated other comprehensive income (loss) at March 31, 2019 , 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: AOCI - Rollforward (Thousands of dollars) Defined Benefit Plans FSIRS Foreign Currency Items Before-Tax Tax (Expense) Benefit (4,5) After-Tax (5) Before-Tax Tax (Expense) Benefit (4,5) After-Tax (5) Before-Tax Tax (Expense) Benefit After-Tax AOCI Beginning Balance AOCI December 31, 2018 $ (55,227 ) $ 13,254 $ (41,973 ) $ (9,310 ) $ 2,234 $ (7,076 ) $ (3,619 ) $ — $ (3,619 ) $ (52,668 ) Translation adjustments — — — — — — 791 — 791 791 Other comprehensive income (loss) before reclassifications — — — — — — 791 — 791 791 FSIRS amounts reclassified from AOCI (1) — — — 836 (201 ) 635 — — — 635 Amortization of prior service cost (2) 317 (76 ) 241 — — — — — — 241 Amortization of net actuarial loss (2) 5,844 (1,403 ) 4,441 — — — — — — 4,441 Regulatory adjustment (3) (5,347 ) 1,284 (4,063 ) — — — — — — (4,063 ) Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc. 814 (195 ) 619 836 (201 ) 635 791 — 791 2,045 Ending Balance AOCI March 31, 2019 $ (54,413 ) $ 13,059 $ (41,354 ) $ (8,474 ) $ 2,033 $ (6,441 ) $ (2,828 ) $ — $ (2,828 ) $ (50,623 ) (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. (5) The beginning balances depict amounts attributable to the individual components of AOCI (Defined Benefit Plans and FSIRS) following the adoption of ASU No. 2018-02, with no impact to the total balance of AOCI resulting from the depiction. The following table represents a rollforward of AOCI, presented on Southwest’s Condensed Consolidated Balance Sheets: AOCI - Rollforward (Thousands of dollars) Defined Benefit Plans FSIRS Before-Tax Tax (Expense) Benefit (9,10) After-Tax (10) Before-Tax Tax (Expense) Benefit (9,10) After-Tax (10) AOCI Beginning Balance AOCI December 31, 2018 $ (55,227 ) $ 13,254 $ (41,973 ) $ (9,310 ) $ 2,234 $ (7,076 ) $ (49,049 ) FSIRS amounts reclassified from AOCI (6) — — — 836 (201 ) 635 635 Amortization of prior service cost (7) 317 (76 ) 241 — — — 241 Amortization of net actuarial loss (7) 5,844 (1,403 ) 4,441 — — — 4,441 Regulatory adjustment (8) (5,347 ) 1,284 (4,063 ) — — — (4,063 ) Net current period other comprehensive income attributable to Southwest Gas Corporation 814 (195 ) 619 836 (201 ) 635 1,254 Ending Balance AOCI March 31, 2019 $ (54,413 ) $ 13,059 $ (41,354 ) $ (8,474 ) $ 2,033 $ (6,441 ) $ (47,795 ) (6) The FSIRS reclassification amounts are included in Net interest deductions on Southwest’s Condensed Consolidated Statements of Income. (7) 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). (8) 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). (9) Tax amounts are calculated using a 24% rate. (10) The beginning balances depict amounts attributable to the individual components of AOCI (Defined Benefit Plans and FSIRS) following the adoption of ASU No. 2018-02, with no impact to the total balance of AOCI resulting from the depiction. 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: Amounts Recognized in AOCI (Before Tax) (Thousands of dollars) March 31, 2019 December 31, 2018 Net actuarial (loss) gain $ (429,520 ) $ (435,364 ) Prior service cost (2,716 ) (3,033 ) Less: amount recognized in regulatory assets 377,823 383,170 Recognized in AOCI $ (54,413 ) $ (55,227 ) |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Note 10 – Segment Information 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 related to corporate and administrative activities related to Southwest Gas Holdings, Inc. The following tables present revenues from external customers, intersegment revenues, and segment net income for the two reportable segments (thousands of dollars): Natural Gas Operations Utility Infrastructure Services Other Total Three Months Ended March 31, 2019 Revenues from external customers $ 520,677 $ 274,189 $ — $ 794,866 Intersegment revenues — 38,673 — 38,673 Total $ 520,677 $ 312,862 $ — $ 833,539 Segment net income (loss) $ 103,389 $ (8,031 ) $ (549 ) $ 94,809 Three Months Ended March 31, 2018 Revenues from external customers $ 494,313 $ 232,859 $ — $ 727,172 Intersegment revenues — 27,158 — 27,158 Total $ 494,313 $ 260,017 $ — $ 754,330 Segment net income (loss) $ 90,349 $ (11,001 ) $ (257 ) $ 79,091 Natural Gas Operations Utility Infrastructure Services Other Total Twelve Months Ended March 31, 2019 Revenues from external customers $ 1,384,092 $ 1,427,701 $ — $ 2,811,793 Intersegment revenues — 147,429 — 147,429 Total $ 1,384,092 $ 1,575,130 $ — $ 2,959,222 Segment net income (loss) $ 151,882 $ 47,947 $ (1,834 ) $ 197,995 Twelve Months Ended March 31, 2018 Revenues from external customers $ 1,334,019 $ 1,211,345 $ — $ 2,545,364 Intersegment revenues — 103,021 — 103,021 Total $ 1,334,019 $ 1,314,366 $ — $ 2,648,385 Segment net income (loss) $ 170,229 $ 34,693 $ (1,298 ) $ 203,624 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | Note 11 – 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. Effective January 2022, the Company has the right, but not the obligation, to purchase at fair value (subject to a floor) a portion of the interest held by the noncontrolling party, and in incremental amounts each year thereafter. The shares subject to the election accumulate (if earlier elections are not made) such that 100% of the interest retained by the noncontrolling party is subject to the election beginning in 2024. If the Company does not exercise its rights at each or any of the specified intervals, the noncontrolling party has the ability, but not the obligation, to exit their investment retained by requiring Centuri to purchase a similar portion of their interest up to the maximum cumulative amounts specified at each interval discussed above. The Company has determined that this noncontrolling interest is a redeemable noncontrolling interest and, in accordance with SEC guidance, is classified as mezzanine equity (temporary equity) in the Company’s Condensed Consolidated Balance Sheets. 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. However, the carrying value of the redeemable noncontrolling interest was greater than its fair value as of March 31, 2019 , and no previous upward redemption value adjustments were made following the acquisition date. SEC guidance indicates that a redemption value adjustment would not be made under these circumstances. The following depicts changes to the balance of the redeemable noncontrolling interest between the indicated periods. Redeemable (Thousands of dollars): Balance, December 31, 2018 $ 81,831 Net income attributable to redeemable noncontrolling interest 575 Balance, March 31, 2019 $ 82,406 |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | Note 12 – Business Acquisitions In November 2018, the Company, through its subsidiaries, led principally by Centuri, completed the acquisition of an 80% interest in a privately held infrastructure services business, Linetec Services, LLC (“Linetec”) with the remaining 20% retained by the seller. See the Company’s 2018 Form 10-K for additional information about this acquisition. Assets acquired and liabilities assumed in the transaction were recorded, generally, at their acquisition date fair values. Transaction costs associated with the acquisition were expensed as incurred. The Company’s allocation of the purchase price was based on an evaluation of the appropriate fair values and represented management’s best estimate based on available data (including market data, data regarding customers of the acquired businesses, terms of acquisition-related agreements, analysis of historical and projected results, and other types of data). The analysis included consideration of types of intangibles that were acquired, including customer relationships, trade names, and customer contracts. Certain payments were estimated as of the acquisition date and will be adjusted when paid; the final purchase accounting has not yet been completed. Further refinement is expected to occur, including potential changes to income taxes and intangibles, as well as additional consideration payments held back. The preliminary estimated fair values of assets acquired and liabilities assumed as of November 30, 2018, are as follows (millions of dollars): Acquisition Date Measurement Period Adjustments Revised Acquisition Date Cash and cash equivalents $ 3.9 $ — $ 3.9 Accounts receivable 32.8 (0.5 ) 32.3 Revenue earned on contracts in progress in excess of billings 21.6 1.7 23.3 Prepaid expenses and other current assets 1.1 0.2 1.3 Property and equipment 89.4 (0.5 ) 88.9 Intangible assets 89.3 — 89.3 Goodwill 188.5 3.3 191.8 Total assets acquired 426.6 4.2 430.8 Accounts payable 8.0 — 8.0 Accrued liabilities 6.9 1.6 8.5 Deferred compensation and related accrued taxes 3.4 — 3.4 Redeemable noncontrolling interest 81.7 — 81.7 Total liabilities assumed and noncontrolling interest 100.0 1.6 101.6 Net assets acquired $ 326.6 $ 2.6 $ 329.2 The Company incurred and expensed acquisition costs of $ 6.9 million for the twelve months ended March 31, 2019 which are included in Utility infrastructure services expenses on the Company’s Condensed Consolidated Statement of Income. No acquisition-related costs were incurred during the three months ended March 31, 2019. |
Background, Organization, and_2
Background, Organization, and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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). At the annual meeting of shareholders of Southwest Gas Holdings, Inc., held on May 2, 2019, shareholders voted to approve changing the state of incorporation for Southwest Gas Holdings, Inc. from California to Delaware. The reincorporation is expected to be effective during the second or third quarter of 2019. However, the reincorporation remains subject to certain regulatory approvals, which are currently pending. 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 from installation, replacement, repair, and maintenance of energy distribution systems, and developing industrial construction solutions. 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 November 2017, Centuri acquired Neuco, thereby expanding its core services in the northeast region of the U.S. Additionally, in November 2018, Centuri expanded its operations in the southeast region of the U.S. through the acquisition of an 80% interest in Linetec. See Note 12 – Business Acquisitions for more information. |
Basis of Presentation | Basis of Presentation. The condensed consolidated financial statements for 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”). The year-end condensed balance sheet data was derived from audited financial statements. 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, or in the primary businesses comprising those segments as a result of the foregoing acquisitions of Neuco and Linetec. |
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. |
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 maturities of three months or less. Such investments are carried at cost, which approximates market value. Cash and cash equivalents for Southwest and the Company also include money market fund investments totaling approximately $41 million and $54.4 million , respectively, at March 31, 2019 , and $18 million and $59.9 million , respectively, at December 31, 2018 , 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 for Southwest include customer advances applied as contributions toward utility construction activity and capital expenditures that were not paid as of quarter end that are included in accounts payable. Amounts related to such activities were immaterial for the periods presented herein. Non-cash investing activities for the three months and twelve months ended March 31, 2019 included $73.5 million of purchase consideration related to the Linetec acquisition by Centuri, in the form of liabilities incurred that remained unpaid as of March 31, 2019 |
Income Taxes | Income Taxes. In 2017, the Tax Cuts and Jobs Act (the “TCJA”) was enacted. The TCJA had significant impacts on the taxation of business entities, including specific provisions related to regulated public utilities. The more significant changes that impacted the Company and Southwest include the reduction in the corporate federal income tax rate from 35% to 21%, and limiting the utilization of net operating losses (“NOLs”) to 80% of taxable income, with the ability to indefinitely carryforward unutilized NOLs to reduce future taxable income. |
Goodwill | Goodwill. Goodwill is assessed as of October 1 st |
Recent Accounting Standards Updates | Recent Accounting Standards Updates. Accounting pronouncements adopted in 2019: In February 2016, the FASB issued the update “Leases (Topic 842).” Under the update, lessees were required to recognize a lease liability for the obligation to make lease payments, measured on a discounted basis; and a right-of-use asset for the right to use, or control the use of, a specified asset for the lease term. The Company and Southwest adopted Topic 842 in the first quarter of 2019 through an optional transition method, which was elected, permitting the application of the provisions of the standard at the adoption date, rather than to earlier comparative periods. As a result, the Company and Southwest have not recast prior periods to reflect the adoption of this standard. See Note 4 – Leases . Accounting pronouncements that will be effective after 2019: In June 2016, the FASB issued ASU 2016-13 update “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The update requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The inputs currently used to estimate credit losses will still be used; however, they may be adapted to reflect the full amount of expected losses. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this update earlier as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is evaluating what impact, if any, this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures. In January 2017, the FASB issued ASU 2017-04 “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Currently, unless meeting the criteria for qualitative assessment only, an entity is required to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit, requiring a hypothetical purchase price allocation to measure the amount of a goodwill impairment. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. Under the update, an entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment. The amount of any goodwill impairment calculated under the update could vary from the calculation under existing guidance, largely due to the consideration to be given to unrecognized differences between the fair value and carrying values of the other assets and liabilities in the reporting unit under the new guidance. The amendments should be applied on a prospective basis. The update is effective for fiscal and interim periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Management is evaluating the impacts this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures. In August 2018, the FASB issued ASU 2018-15 “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The update generally aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement (that is a service contract) with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update also requires the entity to expense the capitalized implementation costs of such hosting arrangements over the term of the hosting arrangement, including reasonably certain renewal periods. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption of the amendments in this update is permitted for interim and related annual fiscal periods after December 15, 2018. Management is evaluating the impacts this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures. In August 2018, the FASB issued ASU 2018-14 “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” This update removes disclosures that are no longer considered cost-beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. The update applies to all employers that sponsor defined benefit pension or other postretirement plans. The update is effective for fiscal years ending after December 15, 2020. Upon adoption, the Company and Southwest will modify their disclosures to conform to the requirements of the update. |
Background, Organization, and_3
Background, Organization, and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Property and Investments | Other Property and Investments. Other property and investments on the Condensed Consolidated Balance Sheets includes (thousands of dollars): March 31, 2019 December 31, 2018 Southwest Gas Corporation: Net cash surrender value of COLI policies $ 122,048 $ 114,405 Other property 1,735 1,741 Total Southwest Gas Corporation 123,783 116,146 Centuri property, equipment, and intangibles 894,739 792,191 Centuri accumulated depreciation/amortization (316,832 ) (298,939 ) Other property 15,032 14,153 Total Southwest Gas Holdings, Inc. $ 716,722 $ 623,551 |
Accounts Receivable for Services | Centuri’s accounts receivable for these services are presented in the table below (thousands of dollars): March 31, 2019 December 31, 2018 Centuri accounts receivable for services provided to Southwest $ 16,837 $ 18,830 |
Schedule of Goodwill | (Thousands of dollars) Natural Gas Operations Utility Infrastructure Services Total Company December 31, 2018 $ 10,095 $ 348,950 $ 359,045 Measurement Period Adjustment - Linetec acquisition — 3,303 3,303 Foreign currency translation adjustment — 2,134 2,134 March 31, 2019 $ 10,095 $ 354,387 $ 364,482 |
Other Income (Deductions) | Other Income (Deductions). The following table provides the composition of significant items included in Other income (deductions) in the Condensed Consolidated Statements of Income (thousands of dollars): Three Months Ended Twelve Months Ended March 31, March 31, 2019 2018 2019 2018 Southwest Gas Corporation - natural gas operations segment: Change in COLI policies $ 7,600 $ (700 ) $ 5,100 $ 6,800 Interest income 1,597 1,418 6,199 3,638 Equity AFUDC 960 229 4,358 2,049 Other components of net periodic benefit cost (3,765 ) (5,265 ) (19,560 ) (19,834 ) Miscellaneous income and (expense) (446 ) (285 ) (2,788 ) (2,400 ) Southwest Gas Corporation - total other income (deductions) 5,946 (4,603 ) (6,691 ) (9,747 ) Utility infrastructure services segment: Interest income — 1 87 4 Foreign transaction gain (loss) 531 147 162 (606 ) Miscellaneous income and (expense) 344 115 125 956 Centuri - total other income (deductions) 875 263 374 354 Corporate and administrative 18 6 64 19 Consolidated Southwest Gas Holdings, Inc. - total other income (deductions) $ 6,839 $ (4,334 ) $ (6,253 ) $ (9,374 ) |
Components of Net Periodic Be_2
Components of Net Periodic Benefit Cost (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs | The service cost component of net periodic benefit costs included in the table below are components of an overhead loading process associated with the cost of labor. The overhead process ultimately results in allocation of that portion of overall net periodic benefit costs 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 the Company and Southwest. Qualified Retirement Plan Period Ended March 31, Three Months Twelve Months 2019 2018 2019 2018 (Thousands of dollars) Service cost $ 6,466 $ 7,139 $ 27,882 $ 24,683 Interest cost 12,252 11,043 45,383 45,606 Expected return on plan assets (15,061 ) (14,689 ) (59,127 ) (56,086 ) Amortization of net actuarial loss 5,589 8,029 29,675 26,032 Net periodic benefit cost $ 9,246 $ 11,522 $ 43,813 $ 40,235 SERP Period Ended March 31, Three Months Twelve Months 2019 2018 2019 2018 (Thousands of dollars) Service cost $ 66 $ 61 $ 250 $ 292 Interest cost 440 415 1,683 1,827 Amortization of net actuarial loss 255 375 1,382 1,456 Net periodic benefit cost $ 761 $ 851 $ 3,315 $ 3,575 PBOP Period Ended March 31, Three Months Twelve Months 2019 2018 2019 2018 (Thousands of dollars) Service cost $ 319 $ 368 $ 1,424 $ 1,469 Interest cost 762 687 2,823 3,111 Expected return on plan assets (789 ) (930 ) (3,577 ) (3,448 ) Amortization of prior service costs 317 334 1,318 1,335 Net periodic benefit cost $ 609 $ 459 $ 1,988 $ 2,467 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 Twelve Months Ended March 31, March 31, (Thousands of dollars) 2019 2018 2019 2018 Residential $ 417,228 $ 344,611 $ 959,837 $ 859,078 Small commercial 89,610 87,943 256,750 250,331 Large commercial 13,962 15,440 51,714 54,224 Industrial/other 6,478 6,510 23,457 23,085 Transportation 24,902 24,054 87,838 89,081 Revenue from contracts with customers 552,180 478,558 1,379,596 1,275,799 Alternative revenue program revenues (deferrals) (34,545 ) 27,209 (15,775 ) 66,788 Other revenues (a) 3,042 (11,454 ) 20,271 (8,568 ) Total Gas operating revenues $ 520,677 $ 494,313 $ 1,384,092 $ 1,334,019 (a) Includes various other revenues which, in the periods presented ending March 31, 2018, were offset by a $14 million (Thousands of dollars) Three Months Ended Twelve Months Ended March 31, March 31, 2019 2018 2019 2018 Service Types: Gas infrastructure services $ 197,893 $ 193,527 $ 1,128,048 $ 938,342 Electric power infrastructure services 52,301 5,402 79,528 19,893 Other 62,668 61,088 367,554 356,131 Total Utility infrastructure services revenues $ 312,862 $ 260,017 $ 1,575,130 $ 1,314,366 (Thousands of dollars) Three Months Ended Twelve Months Ended March 31, March 31, 2019 2018 2019 2018 Contract Types: Master services agreement $ 235,655 $ 194,464 $ 1,143,603 $ 932,804 Bid contract 77,207 65,553 431,527 381,562 Total Utility infrastructure services revenues $ 312,862 $ 260,017 $ 1,575,130 $ 1,314,366 Unit priced contracts $ 235,686 $ 197,322 $ 1,296,783 $ 1,013,642 Fixed priced contracts 38,538 25,541 130,295 137,724 Time and materials contracts 38,638 37,154 148,052 163,000 Total Utility infrastructure services revenues $ 312,862 $ 260,017 $ 1,575,130 $ 1,314,366 |
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, as well as amounts billed in excess of revenue earned on contracts (contract liability), which are included in Other current liabilities as of March 31, 2019 and December 31, 2018 on the Company’s Condensed Consolidated Balance Sheets: (Thousands of dollars) March 31, 2019 December 31, 2018 Contracts receivable, net $ 160,973 $ 186,249 Revenue earned on contracts in progress in excess of billings 97,642 87,520 Amounts billed in excess of revenue earned on contracts 4,588 4,211 |
Schedule of Construction Services Contracts Receivable | Utility infrastructure services contracts receivable consists of the following: (Thousands of dollars) March 31, 2019 December 31, 2018 Billed on completed contracts and contracts in progress $ 159,829 $ 184,100 Other receivables 1,527 2,588 Contracts receivable, gross 161,356 186,688 Allowance for doubtful accounts (383 ) (439 ) Contracts receivable, net $ 160,973 $ 186,249 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense, and Supplemental Cash Flow Information Related to Leases | The components of lease expense were as follows: (Thousands of dollars) Three Months Ended March 31, 2019 Southwest: Operating lease cost $ 406 Centuri: Operating lease cost $ 2,805 Finance lease cost: Amortization of ROU assets $ 35 Interest on lease liabilities 7 Total finance lease cost 42 Short-term lease cost 2,575 Total lease cost $ 5,828 Supplemental cash flow information related to leases for the three months ended March 31, 2019 was as follows: (Thousands of dollars) Southwest Centuri Consolidated Total Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 396 $ 2,555 $ 2,951 Operating cash flows from finance leases — 7 7 Financing cash flows from finance leases — 51 51 ROU assets obtained in exchange for lease obligations: Operating leases $ 523 $ 2,321 $ 2,844 Finance leases — 84 84 |
Supplemental Information Related to Leases Included in Balance Sheet | Supplemental information related to leases, including location in the Condensed Consolidated Balance Sheets, is as follows: (Thousands of dollars) March 31, 2019 Southwest: Operating leases: Net Utility Plant $ 1,977 Other current liabilities $ 745 Other deferred credits and other long-term liabilities 1,253 Total operating lease liabilities $ 1,998 Weighted average remaining lease term (in years) 4.22 Weighted average discount rate 3.39 % Centuri: Operating leases: Other property and investments $ 57,267 Other current liabilities 7,178 Other deferred credits and other long-term liabilities 52,647 Total operating lease liabilities $ 59,825 Finance leases: Other property and investments $ 639 Other current liabilities 256 Other deferred credits and other long-term liabilities 239 Total finance lease liabilities $ 495 Weighted average remaining lease term (in years) Operating leases 9.33 Finance leases 1.63 Weighted average discount rate Operating leases 4.08 % Finance leases 5.84 % |
Schedule of Maturities of Operating Lease Liabilities | The following is a schedule of maturities of lease liabilities as of March 31, 2019 : (Thousands of dollars) Operating leases Southwest: 2020 $ 800 2021 556 2022 295 2023 124 2024 78 Thereafter 307 Total lease payments 2,160 Less imputed interest 162 Total $ 1,998 (Thousands of dollars) Operating leases Finance leases Centuri: 2020 $ 10,394 $ 281 2021 9,327 128 2022 8,328 67 2023 7,645 38 2024 5,710 25 Thereafter 31,303 — Total lease payments 72,707 539 Less imputed interest 12,882 44 Total $ 59,825 $ 495 |
Schedule of Maturities of Finance Lease Liabilities | (Thousands of dollars) Operating leases Finance leases Centuri: 2020 $ 10,394 $ 281 2021 9,327 128 2022 8,328 67 2023 7,645 38 2024 5,710 25 Thereafter 31,303 — Total lease payments 72,707 539 Less imputed interest 12,882 44 Total $ 59,825 $ 495 |
Schedule of Rental and Lease Payments | As the Company and Southwest adopted Topic 842 using the optional transition method referred to in Note 1 – Background, Organization, and Summary of Significant Accounting Policies , the recent annual disclosure of rental and lease payments as of December 31, 2018 in accordance with Topic 840 is presented in the table below: 2018 2017 Southwest Gas Corporation $ 4,556 $ 4,926 Centuri 59,491 62,310 Consolidated rental payments/lease expense $ 64,047 $ 67,236 |
Schedule of Future Minimum Rental Payments for Operating Leases | The following is a schedule of future minimum lease payments for operating leases (with initial or remaining terms in excess of one year) as of December 31, 2018 (thousands of dollars): Southwest Centuri Consolidated Total 2019 $ 898 $ 10,053 $ 10,951 2020 363 7,656 8,019 2021 299 5,760 6,059 2022 163 5,163 5,326 2023 79 3,681 3,760 Thereafter 177 10,511 10,688 Total minimum lease payments $ 1,979 $ 42,824 $ 44,803 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amounts under Swaps Contracts | The differential is calculated based on the notional amounts under the contracts, which are detailed in the table below (thousands of dekatherms): March 31, 2019 December 31, 2018 Contract notional amounts 14,757 13,387 |
Amount of Gain or Losses Recognized in Income on Derivatives | The following table sets forth the gains and (losses) recognized on the Swaps (derivatives) for the three- and twelve-month periods ended March 31, 2019 and 2018 and their location in the Condensed Consolidated Statements of Income for both the Company and Southwest: Gains (losses) recognized in income for derivatives not designated as hedging instruments: (Thousands of dollars) Three Months Ended Twelve Months Ended Location of Gain or (Loss) Recognized in Income on Derivatives March 31, March 31, Instrument 2019 2018 2019 2018 Swaps Net cost of gas sold $ (3,533 ) $ (5,196 ) $ (450 ) $ (11,631 ) Swaps Net cost of gas sold 3,533 * 5,196 * 450 * 11,631 * Total $ — $ — $ — $ — * Represents the impact of regulatory deferral accounting treatment under U.S. GAAP for rate-regulated entities. |
Fair Values of Swaps in Consolidated Balance Sheets | The following table sets forth the fair values of the Swaps and their location in the Condensed Consolidated Balance Sheets for both the Company and Southwest (thousands of dollars): Fair values of derivatives not designated as hedging instruments: March 31, 2019 Asset Liability Instrument Balance Sheet Location Derivatives Derivatives Net Total Swaps Other current liabilities $ 805 $ (4,472 ) $ (3,667 ) Swaps Other deferred credits 60 (809 ) (749 ) Total $ 865 $ (5,281 ) $ (4,416 ) December 31, 2018 Asset Liability Instrument Balance Sheet Location Derivatives Derivatives Net Total Swaps Prepaid and other current assets $ 243 $ (99 ) $ 144 Swaps Other current liabilities 1,595 (3,347 ) (1,752 ) Swaps Other deferred credits 141 (251 ) (110 ) Total $ 1,979 $ (3,697 ) $ (1,718 ) |
Paid to and Received from Counterparties for Settlements of Matured Swaps | The following table shows the amounts Southwest paid to and received from counterparties for settlements of matured Swaps. Three Months Ended Twelve Months Ended (Thousands of dollars) March 31, 2019 March 31, 2019 Paid to counterparties $ 1,882 $ 5,948 Received from counterparties $ 1,047 $ 1,653 |
Regulatory Assets/Liabilities Offsetting Derivatives at Fair Value in Condensed Consolidated Balance Sheets | The following table details the regulatory assets/(liabilities) offsetting the derivatives at fair value in the Condensed Consolidated Balance Sheets for both the Company and Southwest (thousands of dollars). March 31, 2019 Instrument Balance Sheet Location Net Total Swaps Prepaid and other current assets $ 3,667 Swaps Deferred charges and other assets 749 December 31, 2018 Instrument Balance Sheet Location Net Total Swaps Other current liabilities $ (144 ) Swaps Prepaid and other current assets 1,752 Swaps Deferred charges and other assets 110 |
Summary of Financial Assets and Liabilities at Fair Value | The following table sets forth, by level within the three-level fair value hierarchy that ranks the inputs used to measure fair value by their reliability, the financial assets and liabilities that were accounted for at fair value by both the Company and Southwest: Level 2 - Significant other observable inputs (Thousands of dollars) March 31, 2019 December 31, 2018 Assets at fair value: Prepaid and other current assets - Swaps $ — $ 144 Liabilities at fair value: Other current liabilities - Swaps (3,667 ) (1,752 ) Other deferred credits - Swaps (749 ) (110 ) Net Assets (Liabilities) $ (4,416 ) $ (1,718 ) |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Common Stock Activity | The following table provides activity in the Equity Shelf Program for the three and twelve months ended March 31, 2019 : Three Months Ended Twelve Months Ended March 31, March 31, 2019 2018 2019 2018 Gross proceeds $ 23,073,149 $ 9,199,661 $ 99,023,464 $ 50,976,456 Less: agent commissions (230,731 ) (91,997 ) (990,234 ) (509,765 ) Net proceeds $ 22,842,418 $ 9,107,664 $ 98,033,230 $ 50,466,691 Number of shares sold 277,829 137,300 1,286,234 643,007 Weighted average price per share $ 83.05 $ 67.00 $ 76.99 $ 79.28 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Amounts and Estimated Fair Values of Long-Term Debt | The Centuri secured revolving credit and term loan facility and Centuri other debt obligations (not actively traded) are categorized as Level 3, based on significant unobservable inputs to their fair values. Because Centuri’s debt is not publicly traded, fair values for the secured revolving credit and term loan facility and other debt obligations were based on a conventional discounted cash flow methodology and utilized current market pricing yield curves, across Centuri’s debt maturity spectrum, of other industrial bonds with an assumed credit rating comparable to the Company’s. March 31, 2019 December 31, 2018 Carrying Amount Market Value Carrying Amount Market Value (Thousands of dollars) Southwest Gas Corporation: Debentures: Notes, 4.45%, due 2020 $ 125,000 $ 126,990 $ 125,000 $ 126,213 Notes, 6.1%, due 2041 125,000 154,294 125,000 150,728 Notes, 3.875%, due 2022 250,000 255,015 250,000 254,195 Notes, 4.875%, due 2043 250,000 277,683 250,000 268,985 Notes, 3.8%, due 2046 300,000 283,635 300,000 267,030 Notes, 3.7%, due 2028 300,000 306,465 300,000 298,926 8% Series, due 2026 75,000 95,128 75,000 93,827 Medium-term notes, 7.78% series, due 2022 25,000 27,715 25,000 27,497 Medium-term notes, 7.92% series, due 2027 25,000 30,824 25,000 30,016 Medium-term notes, 6.76% series, due 2027 7,500 8,845 7,500 8,651 Unamortized discount and debt issuance costs (11,641 ) (11,807 ) 1,470,859 1,470,693 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 (1,900 ) (2,024 ) 198,100 197,976 Less: current maturities — — Long-term debt, less current maturities - Southwest Gas Corporation $ 1,818,959 $ 1,818,669 Centuri: Centuri term loan facility $ 254,534 $ 257,579 $ 255,959 $ 260,135 Unamortized debt issuance costs (1,343 ) (1,414 ) 253,191 254,545 Centuri secured revolving credit facility 6,361 6,363 — — Centuri other debt obligations 62,678 63,365 67,104 67,053 Less: current maturities (34,915 ) (33,060 ) Long-term debt, less current maturities - Centuri $ 287,315 $ 288,589 Consolidated Southwest Gas Holdings, Inc.: Southwest Gas Corporation long-term debt $ 1,818,959 $ 1,818,669 Centuri long-term debt 322,230 321,649 Less: current maturities (34,915 ) (33,060 ) Long-term debt, less current maturities - Southwest Gas Holdings, Inc. $ 2,106,274 $ 2,107,258 |
Equity, Other Comprehensive I_2
Equity, Other Comprehensive Income, and Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Detailed Activities of Equity and Redeemable Noncontrolling Interest | The tables below provide details of activity in equity, the noncontrolling interest, and the redeemable noncontrolling interest for the Company on a consolidated basis for the three-month periods ended March 31, 2019 and March 31, 2018. Southwest Gas Holdings, Inc. Equity (In thousands, except per share amounts) Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Non-controlling Interest Redeemable Noncontrolling Interest (Temporary Equity) Shares Amount Total December 31, 2018 53,026 $ 54,656 $ 1,305,769 $ (52,668 ) $ 944,285 $ (452 ) $ 2,251,590 $ 81,831 Common stock issuances 365 365 27,024 27,389 Net income (loss) 94,809 94,809 575 Foreign currency exchange translation adjustment 791 791 Other comprehensive income (loss): Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax 619 619 FSIRS amounts reclassified to net income, net of tax 635 635 Dividends declared Common: $0.545 per share (29,285 ) (29,285 ) March 31, 2019 53,391 $ 55,021 $ 1,332,793 $ (50,623 ) $ 1,009,809 $ (452 ) $ 2,346,548 $ 82,406 Southwest Gas Holdings, Inc. Equity Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Non-controlling Interest (In thousands, except per share amounts) Shares Amount Total December 31, 2017 48,090 $ 49,720 $ 955,332 $ (47,682 ) $ 857,398 $ (2,365 ) $ 1,812,403 Common stock issuances 247 247 10,148 10,395 Net income (loss) 79,091 (797 ) 78,294 Foreign currency exchange translation adjustment (911 ) (911 ) Other comprehensive income (loss): Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax 895 895 FSIRS amounts reclassified to net income, net of tax 635 635 Reclassification of excess deferred taxes (a) (9,300 ) 9,300 — Dividends declared Common: $0.52 per share (25,335 ) (25,335 ) March 31, 2018 48,337 $ 49,967 $ 965,480 $ (56,363 ) $ 920,454 $ (3,162 ) $ 1,876,376 (a) Reclassification for the release of excess deferred taxes as a result of the adoption of ASU No. 2018-02 “Income Statement—Reporting Comprehensive Income—Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which permitted release of excess amounts created following the December 2017 enactment of U.S. tax reform. The tables below provide details of activity in equity for Southwest during the three-month periods ended March 31, 2019 and March 31, 2018. Only equity shares of the Company are publicly traded, under the ticker symbol “SWX.” Southwest Gas Corporation Equity Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (In thousands) Shares Amount Total December 31, 2018 47,482 $ 49,112 $ 1,065,242 $ (49,049 ) $ 717,155 $ 1,782,460 Net income 103,389 103,389 Other comprehensive income (loss): Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax 619 619 FSIRS amounts reclassified to net income, net of tax 635 635 Stock-based compensation (a) 918 (160 ) 758 Dividends declared to Southwest Gas Holdings, Inc. (22,800 ) (22,800 ) Contributions from Southwest Gas Holdings, Inc. 22,842 22,842 March 31, 2019 47,482 $ 49,112 $ 1,089,002 $ (47,795 ) $ 797,584 $ 1,887,903 Southwest Gas Corporation Equity Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (In thousands) Shares Amount Total December 31, 2017 47,482 $ 49,112 $ 948,767 $ (47,073 ) $ 659,193 $ 1,609,999 Net income 90,349 90,349 Other comprehensive income (loss): Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax 895 895 FSIRS amounts reclassified to net income, net of tax 635 635 Reclassification of excess deferred taxes (b) (9,300 ) 9,300 — Stock-based compensation (a) (568 ) (166 ) (734 ) Dividends declared to Southwest Gas Holdings, Inc. (22,000 ) (22,000 ) March 31, 2018 47,482 $ 49,112 $ 948,199 $ (54,843 ) $ 736,676 $ 1,679,144 (a) Stock-based compensation is based on stock awards of Southwest Gas Corporation to be issued in shares of Southwest Gas Holdings, Inc. (b) |
Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) | Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) (Thousands of dollars) Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 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 $ 317 $ (76 ) $ 241 $ 334 $ (80 ) $ 254 Amortization of net actuarial (gain)/loss 5,844 (1,403 ) 4,441 8,404 (2,017 ) 6,387 Regulatory adjustment (5,347 ) 1,284 (4,063 ) (7,560 ) 1,814 (5,746 ) Pension plans other comprehensive income 814 (195 ) 619 1,178 (283 ) 895 FSIRS (designated hedging activities): Amounts reclassified into net income 836 (201 ) 635 837 (202 ) 635 FSIRS other comprehensive income 836 (201 ) 635 837 (202 ) 635 Total other comprehensive income - Southwest Gas Corporation 1,650 (396 ) 1,254 2,015 (485 ) 1,530 Foreign currency translation adjustments: Translation adjustments 791 — 791 (911 ) — (911 ) Foreign currency other comprehensive income (loss) 791 — 791 (911 ) — (911 ) Total other comprehensive income - Southwest Gas Holdings, Inc. $ 2,441 $ (396 ) $ 2,045 $ 1,104 $ (485 ) $ 619 Twelve Months Ended Twelve Months Ended March 31, 2019 March 31, 2018 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) $ (20,426 ) $ 4,902 $ (15,524 ) $ (43,027 ) $ 10,326 $ (32,701 ) Amortization of prior service cost 1,318 (316 ) 1,002 1,335 (460 ) 875 Amortization of net actuarial (gain)/loss 31,057 (7,454 ) 23,603 27,488 (9,269 ) 18,219 Regulatory adjustment (6,020 ) 1,446 (4,574 ) 10,515 (115 ) 10,400 Pension plans other comprehensive income (loss) 5,929 (1,422 ) 4,507 (3,689 ) 482 (3,207 ) FSIRS (designated hedging activities): Amounts reclassified into net income 3,344 (803 ) 2,541 3,345 (1,155 ) 2,190 FSIRS other comprehensive income 3,344 (803 ) 2,541 3,345 (1,155 ) 2,190 Total other comprehensive income (loss) - Southwest Gas Corporation 9,273 (2,225 ) 7,048 (344 ) (673 ) (1,017 ) Foreign currency translation adjustments: Translation adjustments (1,308 ) — (1,308 ) 640 — 640 Foreign currency other comprehensive income (loss) (1,308 ) — (1,308 ) 640 — 640 Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. $ 7,965 $ (2,225 ) $ 5,740 $ 296 $ (673 ) $ (377 ) (1) Tax amounts are calculated using a 24% rate following the December 22, 2017 enactment date of U.S. tax reform. For periods prior to the enactment date (and included in specific line items of the tables for the twelve months ended March 31, 2018 ), tax amounts were calculated using a 38% rate. The tax effect of before-tax amounts remaining in the balance of Accumulated other comprehensive income (loss) as of March 31, 2019 is effectively computed using a 24% |
Rollforward of Accumulated Other Comprehensive Income | The following table represents a rollforward of AOCI, presented on the Company’s Condensed Consolidated Balance Sheets: AOCI - Rollforward (Thousands of dollars) Defined Benefit Plans FSIRS Foreign Currency Items Before-Tax Tax (Expense) Benefit (4,5) After-Tax (5) Before-Tax Tax (Expense) Benefit (4,5) After-Tax (5) Before-Tax Tax (Expense) Benefit After-Tax AOCI Beginning Balance AOCI December 31, 2018 $ (55,227 ) $ 13,254 $ (41,973 ) $ (9,310 ) $ 2,234 $ (7,076 ) $ (3,619 ) $ — $ (3,619 ) $ (52,668 ) Translation adjustments — — — — — — 791 — 791 791 Other comprehensive income (loss) before reclassifications — — — — — — 791 — 791 791 FSIRS amounts reclassified from AOCI (1) — — — 836 (201 ) 635 — — — 635 Amortization of prior service cost (2) 317 (76 ) 241 — — — — — — 241 Amortization of net actuarial loss (2) 5,844 (1,403 ) 4,441 — — — — — — 4,441 Regulatory adjustment (3) (5,347 ) 1,284 (4,063 ) — — — — — — (4,063 ) Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc. 814 (195 ) 619 836 (201 ) 635 791 — 791 2,045 Ending Balance AOCI March 31, 2019 $ (54,413 ) $ 13,059 $ (41,354 ) $ (8,474 ) $ 2,033 $ (6,441 ) $ (2,828 ) $ — $ (2,828 ) $ (50,623 ) (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. (5) The beginning balances depict amounts attributable to the individual components of AOCI (Defined Benefit Plans and FSIRS) following the adoption of ASU No. 2018-02, with no impact to the total balance of AOCI resulting from the depiction. The following table represents a rollforward of AOCI, presented on Southwest’s Condensed Consolidated Balance Sheets: AOCI - Rollforward (Thousands of dollars) Defined Benefit Plans FSIRS Before-Tax Tax (Expense) Benefit (9,10) After-Tax (10) Before-Tax Tax (Expense) Benefit (9,10) After-Tax (10) AOCI Beginning Balance AOCI December 31, 2018 $ (55,227 ) $ 13,254 $ (41,973 ) $ (9,310 ) $ 2,234 $ (7,076 ) $ (49,049 ) FSIRS amounts reclassified from AOCI (6) — — — 836 (201 ) 635 635 Amortization of prior service cost (7) 317 (76 ) 241 — — — 241 Amortization of net actuarial loss (7) 5,844 (1,403 ) 4,441 — — — 4,441 Regulatory adjustment (8) (5,347 ) 1,284 (4,063 ) — — — (4,063 ) Net current period other comprehensive income attributable to Southwest Gas Corporation 814 (195 ) 619 836 (201 ) 635 1,254 Ending Balance AOCI March 31, 2019 $ (54,413 ) $ 13,059 $ (41,354 ) $ (8,474 ) $ 2,033 $ (6,441 ) $ (47,795 ) (6) The FSIRS reclassification amounts are included in Net interest deductions on Southwest’s Condensed Consolidated Statements of Income. (7) 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). (8) 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). (9) Tax amounts are calculated using a 24% rate. (10) |
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: Amounts Recognized in AOCI (Before Tax) (Thousands of dollars) March 31, 2019 December 31, 2018 Net actuarial (loss) gain $ (429,520 ) $ (435,364 ) Prior service cost (2,716 ) (3,033 ) Less: amount recognized in regulatory assets 377,823 383,170 Recognized in AOCI $ (54,413 ) $ (55,227 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables present revenues from external customers, intersegment revenues, and segment net income for the two reportable segments (thousands of dollars): Natural Gas Operations Utility Infrastructure Services Other Total Three Months Ended March 31, 2019 Revenues from external customers $ 520,677 $ 274,189 $ — $ 794,866 Intersegment revenues — 38,673 — 38,673 Total $ 520,677 $ 312,862 $ — $ 833,539 Segment net income (loss) $ 103,389 $ (8,031 ) $ (549 ) $ 94,809 Three Months Ended March 31, 2018 Revenues from external customers $ 494,313 $ 232,859 $ — $ 727,172 Intersegment revenues — 27,158 — 27,158 Total $ 494,313 $ 260,017 $ — $ 754,330 Segment net income (loss) $ 90,349 $ (11,001 ) $ (257 ) $ 79,091 Natural Gas Operations Utility Infrastructure Services Other Total Twelve Months Ended March 31, 2019 Revenues from external customers $ 1,384,092 $ 1,427,701 $ — $ 2,811,793 Intersegment revenues — 147,429 — 147,429 Total $ 1,384,092 $ 1,575,130 $ — $ 2,959,222 Segment net income (loss) $ 151,882 $ 47,947 $ (1,834 ) $ 197,995 Twelve Months Ended March 31, 2018 Revenues from external customers $ 1,334,019 $ 1,211,345 $ — $ 2,545,364 Intersegment revenues — 103,021 — 103,021 Total $ 1,334,019 $ 1,314,366 $ — $ 2,648,385 Segment net income (loss) $ 170,229 $ 34,693 $ (1,298 ) $ 203,624 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Summary of Redeemable Noncontrolling Interest | The following depicts changes to the balance of the redeemable noncontrolling interest between the indicated periods. Redeemable (Thousands of dollars): Balance, December 31, 2018 $ 81,831 Net income attributable to redeemable noncontrolling interest 575 Balance, March 31, 2019 $ 82,406 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed | The preliminary estimated fair values of assets acquired and liabilities assumed as of November 30, 2018, are as follows (millions of dollars): Acquisition Date Measurement Period Adjustments Revised Acquisition Date Cash and cash equivalents $ 3.9 $ — $ 3.9 Accounts receivable 32.8 (0.5 ) 32.3 Revenue earned on contracts in progress in excess of billings 21.6 1.7 23.3 Prepaid expenses and other current assets 1.1 0.2 1.3 Property and equipment 89.4 (0.5 ) 88.9 Intangible assets 89.3 — 89.3 Goodwill 188.5 3.3 191.8 Total assets acquired 426.6 4.2 430.8 Accounts payable 8.0 — 8.0 Accrued liabilities 6.9 1.6 8.5 Deferred compensation and related accrued taxes 3.4 — 3.4 Redeemable noncontrolling interest 81.7 — 81.7 Total liabilities assumed and noncontrolling interest 100.0 1.6 101.6 Net assets acquired $ 326.6 $ 2.6 $ 329.2 |
Background, Organization, and_4
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Other Property and Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investment [Line Items] | ||
Other property | $ 15,032 | $ 14,153 |
Total | 716,722 | 623,551 |
Southwest Gas Corporation | ||
Investment [Line Items] | ||
Net cash surrender value of COLI policies | 122,048 | 114,405 |
Other property | 1,735 | 1,741 |
Total | 123,783 | 116,146 |
Centuri | ||
Investment [Line Items] | ||
Centuri property, equipment, and intangibles | 894,739 | 792,191 |
Centuri accumulated depreciation/amortization | $ (316,832) | $ (298,939) |
Background, Organization, and_5
Background, Organization, and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | |
Significant Accounting Policies [Line Items] | ||||
Goodwill impairment | $ 0 | |||
Gas Pipe Materials and Supplies | Prepaid and other current assets | ||||
Significant Accounting Policies [Line Items] | ||||
Gas pipe materials and operating supplies | 55,000,000 | $ 55,000,000 | $ 56,000,000 | |
Prepaid and other current assets | 55,000,000 | 55,000,000 | 74,000,000 | |
Centuri | Linetec | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of voting interests acquired | 80.00% | |||
Purchase consideration | 73,500,000 | 73,500,000 | ||
Southwest Gas Corporation | ||||
Significant Accounting Policies [Line Items] | ||||
Dividends declared but not yet paid | 22,800,000 | 22,800,000 | ||
Pooled Funds and Mutual Funds | Level 2 - Significant Other Observable Inputs | ||||
Significant Accounting Policies [Line Items] | ||||
Money market fund investments | 54,400,000 | 54,400,000 | 59,900,000 | |
Pooled Funds and Mutual Funds | Southwest Gas Corporation | Level 2 - Significant Other Observable Inputs | ||||
Significant Accounting Policies [Line Items] | ||||
Money market fund investments | $ 41,000,000 | $ 41,000,000 | $ 18,000,000 |
Background, Organization, and_6
Background, Organization, and Summary of Significant Accounting Policies - Accounts Receivable for Services (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Centuri | ||
Segment Reporting Information [Line Items] | ||
Centuri accounts receivable for services provided to Southwest | $ 16,837 | $ 18,830 |
Background, Organization, and_7
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 359,045 |
Foreign currency translation adjustment | 2,134 |
Goodwill, ending balance | 364,482 |
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 | 348,950 |
Foreign currency translation adjustment | 2,134 |
Goodwill, ending balance | 354,387 |
Linetec | |
Goodwill [Roll Forward] | |
Measurement Period Adjustment - Linetec acquisition | 3,303 |
Goodwill, ending balance | 191,800 |
Linetec | Natural Gas Operations | |
Goodwill [Roll Forward] | |
Measurement Period Adjustment - Linetec acquisition | 0 |
Linetec | Utility Infrastructure Services | |
Goodwill [Roll Forward] | |
Measurement Period Adjustment - Linetec acquisition | $ 3,303 |
Background, Organization, and_8
Background, Organization, and Summary of Significant Accounting Policies- Other Income (Deductions) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Other income (deductions) | ||||
Total other income (deductions) | $ 6,839 | $ (4,334) | $ (6,253) | $ (9,374) |
Southwest Gas Corporation | ||||
Other income (deductions) | ||||
Total other income (deductions) | 5,946 | (4,603) | (6,691) | (9,747) |
Operating Segments | Natural Gas Operations | Southwest Gas Corporation | ||||
Other income (deductions) | ||||
Change in COLI policies | 7,600 | (700) | 5,100 | 6,800 |
Interest income | 1,597 | 1,418 | 6,199 | 3,638 |
Equity AFUDC | 960 | 229 | 4,358 | 2,049 |
Other components of net periodic benefit cost | (3,765) | (5,265) | (19,560) | (19,834) |
Miscellaneous income and (expense) | (446) | (285) | (2,788) | (2,400) |
Total other income (deductions) | 5,946 | (4,603) | (6,691) | (9,747) |
Operating Segments | Utility Infrastructure Services | Centuri | ||||
Other income (deductions) | ||||
Interest income | 0 | 1 | 87 | 4 |
Foreign transaction gain (loss) | 531 | 147 | 162 | (606) |
Miscellaneous income and (expense) | 344 | 115 | 125 | 956 |
Total other income (deductions) | 875 | 263 | 374 | 354 |
Corporate and administrative | ||||
Other income (deductions) | ||||
Total other income (deductions) | $ 18 | $ 6 | $ 64 | $ 19 |
Components of Net Periodic Be_3
Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Qualified Retirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 6,466 | $ 7,139 | $ 27,882 | $ 24,683 |
Interest cost | 12,252 | 11,043 | 45,383 | 45,606 |
Expected return on plan assets | (15,061) | (14,689) | (59,127) | (56,086) |
Amortization of net actuarial loss | 5,589 | 8,029 | 29,675 | 26,032 |
Net periodic benefit cost | 9,246 | 11,522 | 43,813 | 40,235 |
SERP | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 66 | 61 | 250 | 292 |
Interest cost | 440 | 415 | 1,683 | 1,827 |
Amortization of net actuarial loss | 255 | 375 | 1,382 | 1,456 |
Net periodic benefit cost | 761 | 851 | 3,315 | 3,575 |
PBOP | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 319 | 368 | 1,424 | 1,469 |
Interest cost | 762 | 687 | 2,823 | 3,111 |
Expected return on plan assets | (789) | (930) | (3,577) | (3,448) |
Amortization of prior service costs | 317 | 334 | 1,318 | 1,335 |
Net periodic benefit cost | $ 609 | $ 459 | $ 1,988 | $ 2,467 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)SegmentContract | |
Southwest Gas Corporation | |
Segment Reporting Information [Line Items] | |
Number of operating segment | Segment | 1 |
Centuri | |
Segment Reporting Information [Line Items] | |
Change in contract liability, revenue recognized | $ | $ 4.2 |
Number of contracts with original duration more than one year | Contract | 17 |
Revenue - Revenue Performance O
Revenue - Revenue Performance Obligation (Details) - Centuri - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 $ in Millions | Mar. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Transaction price allocated to unsatisfied performance obligations of contracts | $ 60.7 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 years |
Revenue - Schedule of Gas Opera
Revenue - Schedule of Gas Operating Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 552,180 | $ 478,558 | $ 1,379,596 | $ 1,275,799 |
Alternative revenue program revenues (deferrals) | (34,545) | 27,209 | (15,775) | 66,788 |
Other revenues | 3,042 | (11,454) | 20,271 | (8,568) |
Total Gas operating revenues | 520,677 | 494,313 | 1,384,092 | 1,334,019 |
Tax Reform Savings Revenue Adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Other revenues | 14,000 | |||
Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 417,228 | 344,611 | 959,837 | 859,078 |
Small commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 89,610 | 87,943 | 256,750 | 250,331 |
Large commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 13,962 | 15,440 | 51,714 | 54,224 |
Industrial/other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 6,478 | 6,510 | 23,457 | 23,085 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 24,902 | $ 24,054 | $ 87,838 | $ 89,081 |
Revenue - Summary of Revenue Di
Revenue - Summary of Revenue Disaggregated by Service Type, and Contract Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 552,180 | $ 478,558 | $ 1,379,596 | $ 1,275,799 |
Centuri | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 312,862 | 260,017 | 1,575,130 | 1,314,366 |
Master services agreement | Centuri | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 235,655 | 194,464 | 1,143,603 | 932,804 |
Bid contract | Centuri | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 77,207 | 65,553 | 431,527 | 381,562 |
Unit priced contracts | Centuri | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 235,686 | 197,322 | 1,296,783 | 1,013,642 |
Fixed priced contracts | Centuri | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 38,538 | 25,541 | 130,295 | 137,724 |
Time and materials contracts | Centuri | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 38,638 | 37,154 | 148,052 | 163,000 |
Gas infrastructure services | Centuri | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 197,893 | 193,527 | 1,128,048 | 938,342 |
Electric power infrastructure services | Centuri | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 52,301 | 5,402 | 79,528 | 19,893 |
Other | Centuri | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 62,668 | $ 61,088 | $ 367,554 | $ 356,131 |
Revenue - Summary of Informatio
Revenue - Summary of Information about Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contracts receivable, net | $ 160,973 | $ 186,249 |
Revenue earned on contracts in progress in excess of billings | 97,642 | 87,520 |
Amounts billed in excess of revenue earned on contracts | $ 4,588 | $ 4,211 |
Revenue - Schedule of Construct
Revenue - Schedule of Construction Services Contracts Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Billed on completed contracts and contracts in progress | $ 159,829 | $ 184,100 |
Other receivables | 1,527 | 2,588 |
Contracts receivable, gross | 161,356 | 186,688 |
Allowance for doubtful accounts | (383) | (439) |
Contracts receivable, net | $ 160,973 | $ 186,249 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease ROU assets | $ 58,400 | |
Lease liabilities | 60,800 | |
Southwest Gas Corporation | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease ROU assets | $ 1,977 | |
Lease liabilities | $ 1,998 | |
Lease renewal term (up to) | 3 years | |
Southwest Gas Corporation | Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease ROU assets | 1,900 | |
Lease liabilities | $ 1,900 | |
Centuri | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease ROU assets | $ 57,267 | |
Lease liabilities | $ 59,825 | |
Lease renewal term (up to) | 5 years | |
Lease termination period | 1 year | |
Short-term lease cost | $ 2,575 | |
Minimum | Southwest Gas Corporation | ||
Lessee, Lease, Description [Line Items] | ||
Lease remaining lease term | 1 year | |
Minimum | Centuri | ||
Lessee, Lease, Description [Line Items] | ||
Lease remaining lease term | 1 year | |
Maximum | Southwest Gas Corporation | ||
Lessee, Lease, Description [Line Items] | ||
Lease remaining lease term | 10 years | |
Maximum | Centuri | ||
Lessee, Lease, Description [Line Items] | ||
Lease remaining lease term | 14 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finance lease cost: | |
Total lease cost | $ 5,828 |
Southwest Gas Corporation | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 406 |
Centuri | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 2,805 |
Finance lease cost: | |
Amortization of ROU assets | 35 |
Interest on lease liabilities | 7 |
Total finance lease cost | 42 |
Short-term lease cost | $ 2,575 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating cash flows from operating leases | $ 2,951 |
Operating cash flows from finance leases | 7 |
Financing cash flows from finance leases | 51 |
ROU assets obtained in exchange for operating leases obligations | 2,844 |
ROU assets obtained in exchange for finance leases obligations | 84 |
Southwest Gas Corporation | |
Lessee, Lease, Description [Line Items] | |
Operating cash flows from operating leases | 396 |
Operating cash flows from finance leases | 0 |
Financing cash flows from finance leases | 0 |
ROU assets obtained in exchange for operating leases obligations | 523 |
ROU assets obtained in exchange for finance leases obligations | 0 |
Centuri | |
Lessee, Lease, Description [Line Items] | |
Operating cash flows from operating leases | 2,555 |
Operating cash flows from finance leases | 7 |
Financing cash flows from finance leases | 51 |
ROU assets obtained in exchange for operating leases obligations | 2,321 |
ROU assets obtained in exchange for finance leases obligations | $ 84 |
Leases - Supplemental Informati
Leases - Supplemental Information Related to Leases Included in Balance Sheet (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating lease, weighted average remaining lease term (in years) | 9 years 3 months 29 days |
Operating lease, weighted average discount rate | 4.08% |
Finance lease ROU assets | $ 639 |
Finance lease liabilities, current | 256 |
Finance lease liabilities, noncurrent | 239 |
Finance lease liabilities | $ 495 |
Finance lease, weighted average remaining lease term (in years) | 1 year 7 months 17 days |
Finance lease, weighted average discount rate | 5.84% |
Southwest Gas Corporation | |
Lessee, Lease, Description [Line Items] | |
Operating lease ROU assets | $ 1,977 |
Operating lease liabilities, current | 745 |
Operating lease liabilities, noncurrent | 1,253 |
Operating lease liabilities | $ 1,998 |
Operating lease, weighted average remaining lease term (in years) | 4 years 2 months 19 days |
Operating lease, weighted average discount rate | 3.39% |
Centuri | |
Lessee, Lease, Description [Line Items] | |
Operating lease ROU assets | $ 57,267 |
Operating lease liabilities, current | 7,178 |
Operating lease liabilities, noncurrent | 52,647 |
Operating lease liabilities | 59,825 |
Finance lease liabilities | $ 495 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Finance leases | |
Total | $ 495 |
Centuri | |
Operating leases | |
2020 | 10,394 |
2021 | 9,327 |
2022 | 8,328 |
2023 | 7,645 |
2024 | 5,710 |
Thereafter | 31,303 |
Total lease payments | 72,707 |
Less imputed interest | 12,882 |
Total | 59,825 |
Finance leases | |
2020 | 281 |
2021 | 128 |
2022 | 67 |
2023 | 38 |
2024 | 25 |
Thereafter | 0 |
Total lease payments | 539 |
Less imputed interest | 44 |
Total | 495 |
Southwest Gas Corporation | |
Operating leases | |
2020 | 800 |
2021 | 556 |
2022 | 295 |
2023 | 124 |
2024 | 78 |
Thereafter | 307 |
Total lease payments | 2,160 |
Less imputed interest | 162 |
Total | $ 1,998 |
Leases - Schedule of Rental and
Leases - Schedule of Rental and Lease Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | ||
Rental payments/lease expense | $ 64,047 | $ 67,236 |
Southwest Gas Corporation | ||
Lessee, Lease, Description [Line Items] | ||
Rental payments/lease expense | 4,556 | 4,926 |
Centuri | ||
Lessee, Lease, Description [Line Items] | ||
Rental payments/lease expense | $ 59,491 | $ 62,310 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Lessee, Lease, Description [Line Items] | |
2019 | $ 10,951 |
2020 | 8,019 |
2021 | 6,059 |
2022 | 5,326 |
2023 | 3,760 |
Thereafter | 10,688 |
Total minimum lease payments | 44,803 |
Southwest Gas Corporation | |
Lessee, Lease, Description [Line Items] | |
2019 | 898 |
2020 | 363 |
2021 | 299 |
2022 | 163 |
2023 | 79 |
Thereafter | 177 |
Total minimum lease payments | 1,979 |
Centuri | |
Lessee, Lease, Description [Line Items] | |
2019 | 10,053 |
2020 | 7,656 |
2021 | 5,760 |
2022 | 5,163 |
2023 | 3,681 |
Thereafter | 10,511 |
Total minimum lease payments | $ 42,824 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($)Contract | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($)Contract | Mar. 31, 2018USD ($) | |
Derivative [Line Items] | ||||
Gains (losses) recognized in income or other comprehensive income for derivative designated cash flow hedges | $ 635,000 | $ 635,000 | $ 2,541,000 | $ 2,190,000 |
Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Gains (losses) recognized in income or other comprehensive income for derivative designated cash flow hedges | $ 0 | |||
Arizona | ||||
Derivative [Line Items] | ||||
Natural gas portfolios, maximum % rate | 25.00% | |||
California | ||||
Derivative [Line Items] | ||||
Natural gas portfolios, maximum % rate | 25.00% | |||
Southwest Gas Corporation | ||||
Derivative [Line Items] | ||||
Gains (losses) recognized in income or other comprehensive income for derivative designated cash flow hedges | $ 635,000 | $ 635,000 | $ 2,541,000 | $ 2,190,000 |
Derivative instrument loss at settlement amortization period | 10 years | |||
Southwest Gas Corporation | Forward-starting interest rate swaps | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Number of derivative instruments held | Contract | 2 | 2 |
Derivatives - Notional Amounts
Derivatives - Notional Amounts under Swaps Contracts (Detail) - MMBTU MMBTU in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Contract notional amounts | 14,757 | 13,387 |
Derivatives - Amount of Gain or
Derivatives - Amount of Gain or Losses Recognized in Income on Derivatives (Detail) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | $ 0 | $ 0 | $ 0 | $ 0 |
Net cost of gas sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | (3,533) | (5,196) | (450) | (11,631) |
Regulatory Deferral Accounting Treatment | Net cost of gas sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | $ 3,533 | $ 5,196 | $ 450 | $ 11,631 |
Derivatives - Swaps in Balance
Derivatives - Swaps in Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset derivatives not designated as hedging instruments | $ 865 | $ 1,979 |
Liability derivatives not designated as hedging instruments | (5,281) | (3,697) |
Net total not designated as hedging instruments | (4,416) | (1,718) |
Swaps | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives not designated as hedging instruments | 243 | |
Liability derivatives not designated as hedging instruments | (99) | |
Net total not designated as hedging instruments | 144 | |
Swaps | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives not designated as hedging instruments | 805 | 1,595 |
Liability derivatives not designated as hedging instruments | (4,472) | (3,347) |
Net total not designated as hedging instruments | (3,667) | (1,752) |
Swaps | Other deferred credits | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives not designated as hedging instruments | 60 | 141 |
Liability derivatives not designated as hedging instruments | (809) | (251) |
Net total not designated as hedging instruments | $ (749) | $ (110) |
Derivatives - Paid to and Recei
Derivatives - Paid to and Received from Counterparties for Settlements of Matured Swaps (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Paid to counterparties | $ 1,882 | $ 5,948 |
Received from counterparties | $ 1,047 | $ 1,653 |
Derivatives - Regulatory Assets
Derivatives - Regulatory Assets/Liabilities Offsetting Derivatives (Detail) - Swaps - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Regulatory assets/(liabilities) offsetting the derivatives at fair value | $ 3,667 | $ 1,752 |
Deferred charges and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Regulatory assets/(liabilities) offsetting the derivatives at fair value | $ 749 | 110 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Regulatory assets/(liabilities) offsetting the derivatives at fair value | $ (144) |
Derivatives - Summary of Financ
Derivatives - Summary of Financial Assets and Liabilities (Detail) - Level 2 - Significant Other Observable Inputs - Swaps - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Net Assets (Liabilities) | $ (4,416) | $ (1,718) |
Deferred charges and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 144 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | (3,667) | (1,752) |
Other deferred credits | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ (749) | $ (110) |
Common Stock (Detail)
Common Stock (Detail) - USD ($) | Mar. 29, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | May 02, 2019 |
Class of Stock [Line Items] | ||||||
Maximum aggregate market value of potential common stock issuance | $ 150,000,000 | |||||
Net proceeds to company | $ 25,879,000 | $ 11,220,000 | $ 369,061,000 | $ 52,375,000 | ||
Common stock issued, amount | $ 27,389,000 | 10,395,000 | ||||
Common stock available for issuance (in shares) | 60,000,000 | 60,000,000 | ||||
Equity Shelf Program | ||||||
Class of Stock [Line Items] | ||||||
Gross proceeds | $ 23,073,149 | 9,199,661 | $ 99,023,464 | 50,976,456 | ||
Agent commissions | (230,731) | (91,997) | (990,234) | (509,765) | ||
Net proceeds to company | $ 22,842,418 | $ 9,107,664 | $ 98,033,230 | $ 50,466,691 | ||
Number of shares sold (in shares) | 277,829 | 137,300 | 1,286,234 | 643,007 | ||
Weighted average price per share | $ 83.05 | $ 67 | $ 76.99 | $ 79.28 | ||
Restricted Stock/Unit Plan, and Management Incentive Plan | ||||||
Class of Stock [Line Items] | ||||||
Common stock issued through Restricted Stock/Unit Plan, and Management Incentive Plan (in shares) | 53,000 | |||||
Dividend Reinvestment and Stock Purchase Plan | ||||||
Class of Stock [Line Items] | ||||||
Common stock issued through Restricted Stock/Unit Plan, and Management Incentive Plan (in shares) | 34,000 | |||||
Common stock issued, amount | $ 2,800,000 | |||||
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Common stock available for issuance (in shares) | 120,000,000 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Less: current maturities | $ (34,915) | $ (33,060) |
Long-term debt, less current maturities | 2,106,274 | 2,107,258 |
Long-term Debt, Current and Noncurrent Abstract | ||
Less: current maturities | (34,915) | (33,060) |
Long-term debt, less current maturities | 2,106,274 | 2,107,258 |
Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, less current maturities | 1,818,959 | 1,818,669 |
Long-term Debt, Current and Noncurrent Abstract | ||
Long-term debt, less current maturities | $ 1,818,959 | $ 1,818,669 |
Debentures | Notes, 4.45%, due 2020 | Southwest Gas Corporation | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Debt instrument interest rate | 4.45% | 4.45% |
Debentures | Notes, 6.1%, due 2041 | Southwest Gas Corporation | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Debt instrument interest rate | 6.10% | 6.10% |
Debentures | Notes, 3.875%, due 2022 | Southwest Gas Corporation | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Debt instrument interest rate | 3.875% | 3.875% |
Debentures | Notes, 4.875%, due 2043 | Southwest Gas Corporation | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Debt instrument interest rate | 4.875% | 4.875% |
Debentures | Notes, 3.8%, due 2046 | Southwest Gas Corporation | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Debt instrument interest rate | 3.80% | 3.80% |
Debentures | Notes, 3.7%, due 2028 | Southwest Gas Corporation | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Debt instrument interest rate | 3.70% | 3.70% |
Debentures | 8% Series, due 2026 | Southwest Gas Corporation | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Debt instrument interest rate | 8.00% | 8.00% |
Debentures | Medium-term notes, 7.78% series, due 2022 | Southwest Gas Corporation | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Debt instrument interest rate | 7.78% | 7.78% |
Debentures | Medium-term notes, 7.92% series, due 2027 | Southwest Gas Corporation | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Debt instrument interest rate | 7.92% | 7.92% |
Debentures | Medium-term notes, 6.76% series, due 2027 | Southwest Gas Corporation | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Debt instrument interest rate | 6.76% | 6.76% |
Carrying Amount | ||
Debt Instrument [Line Items] | ||
Long-term debt, less current maturities | $ 2,106,274 | $ 2,107,258 |
Long-term Debt, Current and Noncurrent Abstract | ||
Long-term debt, less current maturities | 2,106,274 | 2,107,258 |
Carrying Amount | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Less: current maturities | 0 | 0 |
Long-term debt, less current maturities | 1,818,959 | 1,818,669 |
Long-term Debt, Current and Noncurrent Abstract | ||
Long-term debt | 1,818,959 | 1,818,669 |
Less: current maturities | 0 | 0 |
Long-term debt, less current maturities | 1,818,959 | 1,818,669 |
Carrying Amount | Centuri | ||
Debt Instrument [Line Items] | ||
Less: current maturities | (34,915) | (33,060) |
Long-term debt, less current maturities | 287,315 | 288,589 |
Unamortized debt issuance costs | (1,343) | (1,414) |
Long-term Debt, Current and Noncurrent Abstract | ||
Long-term debt | 322,230 | 321,649 |
Less: current maturities | (34,915) | (33,060) |
Long-term debt, less current maturities | 287,315 | 288,589 |
Centuri secured revolving credit facility | 253,191 | 254,545 |
Carrying Amount | Centuri secured revolving credit facility | Centuri | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Centuri secured revolving credit facility | 6,361 | 0 |
Carrying Amount | Centuri term loan facility | Centuri | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Centuri secured revolving credit facility | 254,534 | 255,959 |
Carrying Amount | Centuri other debt obligations | Centuri | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Centuri other debt obligations | 62,678 | 67,104 |
Carrying Amount | Debentures | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable | 1,470,859 | 1,470,693 |
Unamortized discount and debt issuance costs | (11,641) | (11,807) |
Carrying Amount | Debentures | Notes, 4.45%, due 2020 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable | 125,000 | 125,000 |
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 | 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 | (1,900) | (2,024) |
Unsecured debt | 198,100 | 197,976 |
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 |
Market Value | Centuri | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Centuri secured revolving credit facility | 257,579 | 260,135 |
Centuri other debt obligations | 63,365 | 67,053 |
Market Value | Centuri secured revolving credit facility | Centuri | ||
Long-term Debt, Current and Noncurrent Abstract | ||
Centuri secured revolving credit facility | 6,363 | 0 |
Market Value | Debentures | Notes, 4.45%, due 2020 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 126,990 | 126,213 |
Market Value | Debentures | Notes, 6.1%, due 2041 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 154,294 | 150,728 |
Market Value | Debentures | Notes, 3.875%, due 2022 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 255,015 | 254,195 |
Market Value | Debentures | Notes, 4.875%, due 2043 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 277,683 | 268,985 |
Market Value | Debentures | Notes, 3.8%, due 2046 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 283,635 | 267,030 |
Market Value | Debentures | Notes, 3.7%, due 2028 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 306,465 | 298,926 |
Market Value | Debentures | 8% Series, due 2026 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 95,128 | 93,827 |
Market Value | Debentures | Medium-term notes, 7.78% series, due 2022 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 27,715 | 27,497 |
Market Value | Debentures | Medium-term notes, 7.92% series, due 2027 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 30,824 | 30,016 |
Market Value | Debentures | Medium-term notes, 6.76% series, due 2027 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Notes payable, fair value disclosure | 8,845 | 8,651 |
Market 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 |
Market Value | Industrial development revenue bonds | Tax-exempt Series A, due 2028 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Unsecured debt | 50,000 | 50,000 |
Market Value | Industrial development revenue bonds | 2003 Series A, due 2038 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Unsecured debt | 50,000 | 50,000 |
Market 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 |
Market 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 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Oct. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Short term borrowings outstanding | $ 188,000,000 | $ 152,000,000 | ||
Southwest Gas Corporation | ||||
Debt Instrument [Line Items] | ||||
Short term borrowings outstanding | 188,000,000 | $ 152,000,000 | ||
Southwest Gas Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility maximum borrowing capacity | 100,000,000 | |||
Southwest Gas Credit Facility | Southwest Gas Corporation | ||||
Debt Instrument [Line Items] | ||||
Credit facility maximum borrowing capacity | 400,000,000 | |||
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 | |||
Short term borrowings outstanding | $ 188,000,000 | |||
Southwest Gas Credit Facility | LIBOR | Southwest Gas Corporation | ||||
Debt Instrument [Line Items] | ||||
Applicable margin | 1.00% | |||
Southwest Gas Credit Facility | Alternative Base Rate | Southwest Gas Corporation | ||||
Debt Instrument [Line Items] | ||||
Applicable margin | 0.00% | |||
Commercial Paper Program | Southwest Gas Corporation | ||||
Debt Instrument [Line Items] | ||||
Credit facility maximum borrowing capacity | $ 50,000,000 | |||
Borrowings outstanding under facility | 50,000,000 | |||
Secured Revolving Credit Facility and Term Loan | Centuri | ||||
Debt Instrument [Line Items] | ||||
Credit facility maximum borrowing capacity | $ 590,000,000 | $ 450,000,000 | ||
Borrowings outstanding under facility | 261,000,000 | |||
Debt secured by assets | $ 1,100,000,000 | |||
Line of Credit | Centuri | ||||
Debt Instrument [Line Items] | ||||
Credit facility maximum borrowing capacity | 325,000,000 | |||
Centuri term loan facility | Centuri | ||||
Debt Instrument [Line Items] | ||||
Credit facility maximum borrowing capacity | $ 265,000,000 |
Short-Term Debt (Detail)
Short-Term Debt (Detail) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Short term borrowings outstanding | $ 188,000,000 | $ 152,000,000 |
Southwest Gas Credit Facility | ||
Short-term Debt [Line Items] | ||
Credit facility maximum borrowing capacity | 100,000,000 | |
Southwest Gas Credit Facility | Credit Facility | ||
Short-term Debt [Line Items] | ||
Short term borrowings outstanding | 0 | |
Southwest Gas Corporation | ||
Short-term Debt [Line Items] | ||
Short term borrowings outstanding | 188,000,000 | $ 152,000,000 |
Southwest Gas Corporation | Southwest Gas Credit Facility | ||
Short-term Debt [Line Items] | ||
Credit facility maximum borrowing capacity | 400,000,000 | |
Short term borrowings outstanding | 188,000,000 | |
Line of credit designated for working capital purposes | $ 250,000,000 |
Equity, Other Comprehensive I_3
Equity, Other Comprehensive Income, and Accumulated Other Comprehensive Income - Detailed Activities of Equity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance (in shares) | 53,026,848 | |||
Beginning balance | $ 2,251,590 | $ 1,812,403 | $ 1,876,376 | |
Common stock issuances | 27,389 | 10,395 | ||
Net income (loss) | 94,809 | 78,294 | ||
Foreign currency exchange translation adjustment | 791 | (911) | ||
Other comprehensive income (loss): | ||||
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax | 619 | 895 | ||
FSIRS amounts reclassified to net income, net of tax | $ 635 | 635 | $ 2,541 | $ 2,190 |
Reclassification of excess deferred taxes | 0 | |||
Ending balance (in shares) | 53,391,731 | 53,391,731 | ||
Ending balance | $ 2,346,548 | $ 1,876,376 | $ 2,346,548 | 1,876,376 |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Beginning balance | 81,831 | |||
Net income (loss) | 575 | |||
Ending balance | $ 82,406 | 82,406 | ||
Dividends declared per share (in USD per share) | $ 0.545 | $ 0.52 | ||
Southwest Gas Corporation | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 1,782,460 | $ 1,609,999 | 1,679,144 | |
Net income (loss) | 103,389 | 90,349 | ||
Other comprehensive income (loss): | ||||
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax | 619 | 895 | ||
FSIRS amounts reclassified to net income, net of tax | 635 | 635 | 2,541 | 2,190 |
Reclassification of excess deferred taxes | 0 | |||
Stock-based compensation | 758 | (734) | ||
Dividends declared | (22,800) | (22,000) | ||
Contributions from Southwest Gas Holdings, Inc. | 22,842 | |||
Ending balance | $ 1,887,903 | $ 1,679,144 | $ 1,887,903 | $ 1,679,144 |
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance (in shares) | 53,026,000 | 48,090,000 | 48,337,000 | |
Beginning balance | $ 54,656 | $ 49,720 | $ 49,967 | |
Common stock issuances (in shares) | 365,000 | 247,000 | ||
Common stock issuances | $ 365 | $ 247 | ||
Other comprehensive income (loss): | ||||
Ending balance (in shares) | 53,391,000 | 48,337,000 | 53,391,000 | 48,337,000 |
Ending balance | $ 55,021 | $ 49,967 | $ 55,021 | $ 49,967 |
Common Stock | Southwest Gas Corporation | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance (in shares) | 47,482,000 | 47,482,000 | 47,482,000 | |
Beginning balance | $ 49,112 | $ 49,112 | $ 49,112 | |
Other comprehensive income (loss): | ||||
Ending balance (in shares) | 47,482,000 | 47,482,000 | 47,482,000 | 47,482,000 |
Ending balance | $ 49,112 | $ 49,112 | $ 49,112 | $ 49,112 |
Additional Paid-in Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 1,305,769 | 955,332 | 965,480 | |
Common stock issuances | 27,024 | 10,148 | ||
Other comprehensive income (loss): | ||||
Ending balance | 1,332,793 | 965,480 | 1,332,793 | 965,480 |
Additional Paid-in Capital | Southwest Gas Corporation | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 1,065,242 | 948,767 | 948,199 | |
Other comprehensive income (loss): | ||||
Stock-based compensation | 918 | (568) | ||
Contributions from Southwest Gas Holdings, Inc. | 22,842 | |||
Ending balance | 1,089,002 | 948,199 | 1,089,002 | 948,199 |
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (52,668) | (47,682) | (56,363) | |
Foreign currency exchange translation adjustment | 791 | (911) | ||
Other comprehensive income (loss): | ||||
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax | 619 | 895 | ||
FSIRS amounts reclassified to net income, net of tax | 635 | 635 | ||
Reclassification of excess deferred taxes | (9,300) | |||
Ending balance | (50,623) | (56,363) | (50,623) | (56,363) |
Accumulated Other Comprehensive Income (Loss) | Southwest Gas Corporation | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (49,049) | (47,073) | (54,843) | |
Other comprehensive income (loss): | ||||
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax | 619 | 895 | ||
FSIRS amounts reclassified to net income, net of tax | 635 | 635 | ||
Reclassification of excess deferred taxes | (9,300) | |||
Ending balance | (47,795) | (54,843) | (47,795) | (54,843) |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 944,285 | 857,398 | 920,454 | |
Net income (loss) | 94,809 | 79,091 | ||
Other comprehensive income (loss): | ||||
Reclassification of excess deferred taxes | 9,300 | |||
Dividends declared | (29,285) | (25,335) | ||
Ending balance | 1,009,809 | 920,454 | 1,009,809 | 920,454 |
Retained Earnings | Southwest Gas Corporation | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 717,155 | 659,193 | 736,676 | |
Net income (loss) | 103,389 | 90,349 | ||
Other comprehensive income (loss): | ||||
Reclassification of excess deferred taxes | 9,300 | |||
Stock-based compensation | (160) | (166) | ||
Dividends declared | (22,800) | (22,000) | ||
Ending balance | 797,584 | 736,676 | 797,584 | 736,676 |
Non-controlling Interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (452) | (2,365) | (3,162) | |
Net income (loss) | (797) | |||
Other comprehensive income (loss): | ||||
Ending balance | $ (452) | $ (3,162) | $ (452) | $ (3,162) |
Equity, Other Comprehensive I_4
Equity, Other Comprehensive Income, and Accumulated Other Comprehensive Income - Related Tax Effects Allocated to OCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) before reclassifications, net of tax | $ 791 | ||||
Other comprehensive income (loss), before tax | 2,441 | $ 1,104 | $ 7,965 | $ 296 | |
Other comprehensive income (loss), tax | (396) | (485) | (2,225) | (673) | |
Total other comprehensive income (loss), net of tax | $ 2,045 | 619 | 5,740 | (377) | |
Effective income tax rate | 24.00% | 38.00% | |||
Southwest Gas Corporation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | $ 1,650 | 2,015 | 9,273 | (344) | |
Other comprehensive income (loss), tax | (396) | (485) | (2,225) | (673) | |
Total other comprehensive income (loss), net of tax | 1,254 | 1,530 | 7,048 | (1,017) | |
Defined Benefit Plans | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | 814 | 1,178 | 5,929 | (3,689) | |
Other comprehensive income (loss), tax | (195) | (283) | (1,422) | 482 | |
Total other comprehensive income (loss), net of tax | 619 | 895 | 4,507 | (3,207) | |
Defined Benefit Plans | Southwest Gas Corporation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | 814 | ||||
Other comprehensive income (loss), tax | (195) | ||||
Total other comprehensive income (loss), net of tax | 619 | ||||
Amortization of prior service cost | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification from AOCI, before Tax | 317 | 334 | 1,318 | 1,335 | |
Reclassification from AOCI, tax | (76) | (80) | (316) | (460) | |
Reclassification from AOCI, net of tax | 241 | 254 | 1,002 | 875 | |
Other comprehensive income (loss), before tax | 317 | ||||
Other comprehensive income (loss), tax | (76) | ||||
Total other comprehensive income (loss), net of tax | 241 | ||||
Amortization of prior service cost | Southwest Gas Corporation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | 317 | ||||
Other comprehensive income (loss), tax | (76) | ||||
Total other comprehensive income (loss), net of tax | 241 | ||||
Net actuarial gain/(loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) before reclassifications, before tax | (20,426) | (43,027) | |||
Other comprehensive income (loss) before reclassifications, tax | 4,902 | 10,326 | |||
Other comprehensive income (loss) before reclassifications, net of tax | (15,524) | (32,701) | |||
Reclassification from AOCI, before Tax | 5,844 | 8,404 | 31,057 | 27,488 | |
Reclassification from AOCI, tax | (1,403) | (2,017) | (7,454) | (9,269) | |
Reclassification from AOCI, net of tax | 4,441 | 6,387 | 23,603 | 18,219 | |
Other comprehensive income (loss), before tax | 5,844 | ||||
Other comprehensive income (loss), tax | (1,403) | ||||
Total other comprehensive income (loss), net of tax | 4,441 | ||||
Net actuarial gain/(loss) | Southwest Gas Corporation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | 5,844 | ||||
Other comprehensive income (loss), tax | (1,403) | ||||
Total other comprehensive income (loss), net of tax | 4,441 | ||||
Regulatory adjustment | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification from AOCI, before Tax | (5,347) | (7,560) | (6,020) | 10,515 | |
Reclassification from AOCI, tax | 1,284 | 1,814 | 1,446 | (115) | |
Reclassification from AOCI, net of tax | (4,063) | (5,746) | (4,574) | 10,400 | |
Other comprehensive income (loss), before tax | (5,347) | ||||
Other comprehensive income (loss), tax | 1,284 | ||||
Total other comprehensive income (loss), net of tax | (4,063) | ||||
Regulatory adjustment | Southwest Gas Corporation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | (5,347) | ||||
Other comprehensive income (loss), tax | 1,284 | ||||
Total other comprehensive income (loss), net of tax | (4,063) | ||||
FSIRS | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification from AOCI, before Tax | 836 | 837 | 3,344 | 3,345 | |
Reclassification from AOCI, tax | (201) | (202) | (803) | (1,155) | |
Reclassification from AOCI, net of tax | 635 | 635 | 2,541 | 2,190 | |
Other comprehensive income (loss), before tax | 836 | 837 | 3,344 | 3,345 | |
Other comprehensive income (loss), tax | (201) | (202) | (803) | (1,155) | |
Total other comprehensive income (loss), net of tax | 635 | 635 | 2,541 | 2,190 | |
FSIRS | Southwest Gas Corporation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification from AOCI, before Tax | 836 | ||||
Reclassification from AOCI, tax | (201) | ||||
Reclassification from AOCI, net of tax | 635 | ||||
Other comprehensive income (loss), before tax | 836 | ||||
Other comprehensive income (loss), tax | (201) | ||||
Total other comprehensive income (loss), net of tax | 635 | ||||
Foreign Currency Items | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) before reclassifications, before tax | 791 | (911) | (1,308) | 640 | |
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss) before reclassifications, net of tax | 791 | $ (911) | $ (1,308) | $ 640 | |
Other comprehensive income (loss), before tax | 791 | ||||
Total other comprehensive income (loss), net of tax | $ 791 |
Equity, Other Comprehensive I_5
Equity, Other Comprehensive Income, and Accumulated Other Comprehensive Income - Additional Information (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Equity [Abstract] | |
Amount of FSIRS existing AOCI losses expected to reclassified income in next twelve months | $ 2.5 |
Equity, Other Comprehensive I_6
Equity, Other Comprehensive Income, and Accumulated Other Comprehensive Income - AOCI Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 2,251,590 | $ 1,812,403 | $ 1,876,376 | $ 1,812,403 | |
Beginning balance, attributable to parent | 2,252,042 | ||||
Other comprehensive income (loss) before reclassifications, net of tax | 791 | ||||
Other comprehensive income (loss), before tax | 2,441 | 1,104 | 7,965 | $ 296 | |
Other comprehensive income (loss), tax | (396) | (485) | (2,225) | (673) | |
Total other comprehensive income (loss), net of tax | 2,045 | 619 | 5,740 | (377) | |
Ending balance, attributable to parent | 2,347,000 | 2,347,000 | 2,252,042 | ||
Ending balance | $ 2,346,548 | 1,876,376 | 2,346,548 | $ 2,251,590 | 1,876,376 |
Effective income tax rate | 24.00% | 38.00% | |||
Defined Benefit Plans | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance, before tax | $ (55,227) | ||||
Beginning balance, tax | 13,254 | ||||
Beginning balance | (41,973) | ||||
Other comprehensive income (loss), before tax | 814 | 1,178 | 5,929 | (3,689) | |
Other comprehensive income (loss), tax | (195) | (283) | (1,422) | 482 | |
Total other comprehensive income (loss), net of tax | 619 | 895 | 4,507 | (3,207) | |
Ending balance, before tax | (54,413) | (54,413) | $ (55,227) | ||
Ending balance, tax | 13,059 | 13,059 | 13,254 | ||
Ending balance | (41,354) | (41,354) | (41,973) | ||
Amortization of prior service cost | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Reclassification from AOCI, before Tax | 317 | 334 | 1,318 | 1,335 | |
Reclassification from AOCI, tax | (76) | (80) | (316) | (460) | |
Reclassification from AOCI, net of tax | 241 | 254 | 1,002 | 875 | |
Other comprehensive income (loss), before tax | 317 | ||||
Other comprehensive income (loss), tax | (76) | ||||
Total other comprehensive income (loss), net of tax | 241 | ||||
Amortization of net actuarial loss | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Other comprehensive income (loss) before reclassifications, before tax | (20,426) | (43,027) | |||
Other comprehensive income (loss) before reclassifications, net of tax | (15,524) | (32,701) | |||
Reclassification from AOCI, before Tax | 5,844 | 8,404 | 31,057 | 27,488 | |
Reclassification from AOCI, tax | (1,403) | (2,017) | (7,454) | (9,269) | |
Reclassification from AOCI, net of tax | 4,441 | 6,387 | 23,603 | 18,219 | |
Other comprehensive income (loss), before tax | 5,844 | ||||
Other comprehensive income (loss), tax | (1,403) | ||||
Total other comprehensive income (loss), net of tax | 4,441 | ||||
Regulatory adjustment | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Reclassification from AOCI, before Tax | (5,347) | (7,560) | (6,020) | 10,515 | |
Reclassification from AOCI, tax | 1,284 | 1,814 | 1,446 | (115) | |
Reclassification from AOCI, net of tax | (4,063) | (5,746) | (4,574) | 10,400 | |
Other comprehensive income (loss), before tax | (5,347) | ||||
Other comprehensive income (loss), tax | 1,284 | ||||
Total other comprehensive income (loss), net of tax | (4,063) | ||||
FSIRS | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance, before tax | (9,310) | ||||
Beginning balance, tax | 2,234 | ||||
Beginning balance | (7,076) | ||||
Reclassification from AOCI, before Tax | 836 | 837 | 3,344 | 3,345 | |
Reclassification from AOCI, tax | (201) | (202) | (803) | (1,155) | |
Reclassification from AOCI, net of tax | 635 | 635 | 2,541 | 2,190 | |
Other comprehensive income (loss), before tax | 836 | 837 | 3,344 | 3,345 | |
Other comprehensive income (loss), tax | (201) | (202) | (803) | (1,155) | |
Total other comprehensive income (loss), net of tax | 635 | 635 | 2,541 | 2,190 | |
Ending balance, before tax | (8,474) | (8,474) | (9,310) | ||
Ending balance, tax | 2,033 | 2,033 | 2,234 | ||
Ending balance | (6,441) | (6,441) | (7,076) | ||
Foreign Currency Items | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance, before tax | (3,619) | ||||
Beginning balance | (3,619) | ||||
Other comprehensive income (loss) before reclassifications, before tax | 791 | (911) | (1,308) | 640 | |
Other comprehensive income (loss) before reclassifications, net of tax | 791 | (911) | (1,308) | 640 | |
Other comprehensive income (loss), before tax | 791 | ||||
Total other comprehensive income (loss), net of tax | 791 | ||||
Ending balance, before tax | (2,828) | (2,828) | (3,619) | ||
Ending balance | (2,828) | (2,828) | (3,619) | ||
AOCI Attributable to Parent | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (52,668) | (47,682) | (56,363) | (47,682) | |
Ending balance | (50,623) | (56,363) | (50,623) | (52,668) | (56,363) |
Southwest Gas Corporation | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 1,782,460 | 1,609,999 | 1,679,144 | 1,609,999 | |
Beginning balance, attributable to parent | 1,782,460 | ||||
Other comprehensive income (loss), before tax | 1,650 | 2,015 | 9,273 | (344) | |
Other comprehensive income (loss), tax | (396) | (485) | (2,225) | (673) | |
Total other comprehensive income (loss), net of tax | 1,254 | 1,530 | 7,048 | (1,017) | |
Ending balance, attributable to parent | 1,887,903 | 1,887,903 | 1,782,460 | ||
Ending balance | 1,887,903 | 1,679,144 | 1,887,903 | 1,782,460 | 1,679,144 |
Southwest Gas Corporation | Defined Benefit Plans | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance, attributable to parent, before tax | (55,227) | ||||
Beginning balance, attributable to parent, tax | 13,254 | ||||
Beginning balance, attributable to parent | (41,973) | ||||
Other comprehensive income (loss), before tax | 814 | ||||
Other comprehensive income (loss), tax | (195) | ||||
Total other comprehensive income (loss), net of tax | 619 | ||||
Ending balance, attributable to parent, before tax | (54,413) | (54,413) | (55,227) | ||
Ending balance, attributable to parent, tax | 13,059 | 13,059 | 13,254 | ||
Ending balance, attributable to parent | (41,354) | (41,354) | (41,973) | ||
Southwest Gas Corporation | Amortization of prior service cost | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Other comprehensive income (loss), before tax | 317 | ||||
Other comprehensive income (loss), tax | (76) | ||||
Total other comprehensive income (loss), net of tax | 241 | ||||
Southwest Gas Corporation | Amortization of net actuarial loss | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Other comprehensive income (loss), before tax | 5,844 | ||||
Other comprehensive income (loss), tax | (1,403) | ||||
Total other comprehensive income (loss), net of tax | 4,441 | ||||
Southwest Gas Corporation | Regulatory adjustment | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Other comprehensive income (loss), before tax | (5,347) | ||||
Other comprehensive income (loss), tax | 1,284 | ||||
Total other comprehensive income (loss), net of tax | (4,063) | ||||
Southwest Gas Corporation | FSIRS | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance, attributable to parent, before tax | (9,310) | ||||
Beginning balance, attributable to parent, tax | 2,234 | ||||
Beginning balance, attributable to parent | (7,076) | ||||
Reclassification from AOCI, before Tax | 836 | ||||
Reclassification from AOCI, tax | (201) | ||||
Reclassification from AOCI, net of tax | 635 | ||||
Other comprehensive income (loss), before tax | 836 | ||||
Other comprehensive income (loss), tax | (201) | ||||
Total other comprehensive income (loss), net of tax | 635 | ||||
Ending balance, attributable to parent, before tax | (8,474) | (8,474) | (9,310) | ||
Ending balance, attributable to parent, tax | 2,033 | 2,033 | 2,234 | ||
Ending balance, attributable to parent | (6,441) | (6,441) | (7,076) | ||
Southwest Gas Corporation | AOCI Attributable to Parent | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (49,049) | (47,073) | (54,843) | (47,073) | |
Beginning balance, attributable to parent | (49,049) | ||||
Ending balance, attributable to parent | (47,795) | (47,795) | (49,049) | ||
Ending balance | $ (47,795) | $ (54,843) | $ (47,795) | $ (49,049) | $ (54,843) |
Equity, Other Comprehensive I_7
Equity, Other Comprehensive Income, and Accumulated Other Comprehensive Income - Amounts Recognized Before Tax, Defined Benefit Plans (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Net actuarial (loss) gain | $ (429,520) | $ (435,364) |
Prior service cost | (2,716) | (3,033) |
Less: amount recognized in regulatory assets | 377,823 | 383,170 |
Recognized in AOCI | $ (54,413) | $ (55,227) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 833,539 | $ 754,330 | $ 2,959,222 | $ 2,648,385 |
Segment net income (loss) | 94,809 | 79,091 | 197,995 | 203,624 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 794,866 | 727,172 | 2,811,793 | 2,545,364 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 38,673 | 27,158 | 147,429 | 103,021 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Segment net income (loss) | (549) | (257) | (1,834) | (1,298) |
Natural Gas Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 520,677 | 494,313 | 1,384,092 | 1,334,019 |
Segment net income (loss) | 103,389 | 90,349 | 151,882 | 170,229 |
Natural Gas Operations | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 520,677 | 494,313 | 1,384,092 | 1,334,019 |
Natural Gas Operations | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Utility Infrastructure Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 312,862 | 260,017 | 1,575,130 | 1,314,366 |
Segment net income (loss) | (8,031) | (11,001) | 47,947 | 34,693 |
Utility Infrastructure Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 274,189 | 232,859 | 1,427,701 | 1,211,345 |
Utility Infrastructure Services | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 38,673 | $ 27,158 | $ 147,429 | $ 103,021 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests - Additional Information (Detail) | Mar. 31, 2019 | Nov. 30, 2018 |
Noncontrolling Interest [Line Items] | ||
Percentage of interest retained by noncontrolling party subject to election | 100.00% | |
Linetec | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage by noncontrolling owners | 20.00% |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests - Summary of Redeemable Noncontrolling Interest (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Movement In Redeemable Noncontrolling Interest [Roll Forward] | |
Balance, December 31, 2018 | $ 81,831 |
Net income attributable to redeemable noncontrolling interest | (575) |
Balance, March 31, 2019 | $ 82,406 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2019 | Nov. 30, 2018 | |
Linetec | |||
Business Acquisition [Line Items] | |||
Acquisition costs | $ 0 | $ 6,900,000 | |
Centuri | Linetec | |||
Business Acquisition [Line Items] | |||
Percentage of voting interests acquired | 80.00% | ||
Linetec | |||
Business Acquisition [Line Items] | |||
Ownership percentage by noncontrolling owners | 20.00% |
Business Acquisitions - Summary
Business Acquisitions - Summary of Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 4 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | |
Fair Values of Assets Acquired and Liabilities Assumed | |||
Goodwill | $ 364,482 | $ 359,045 | |
Linetec | |||
Fair Values of Assets Acquired and Liabilities Assumed | |||
Cash and cash equivalents | 3,900 | $ 3,900 | |
Accounts receivable | 32,300 | 32,800 | |
Revenue earned on contracts in progress in excess of billings | 23,300 | 21,600 | |
Prepaid expenses and other current assets | 1,300 | 1,100 | |
Property and equipment | 88,900 | 89,400 | |
Intangible assets | 89,300 | 89,300 | |
Goodwill | 191,800 | 188,500 | |
Total assets acquired | 430,800 | 426,600 | |
Accounts payable | 8,000 | 8,000 | |
Accrued liabilities | 8,500 | 6,900 | |
Deferred compensation and related accrued taxes | 3,400 | 3,400 | |
Redeemable noncontrolling interest | 81,700 | 81,700 | |
Total liabilities assumed and noncontrolling interest | 101,600 | 100,000 | |
Net assets acquired | 329,200 | $ 326,600 | |
Measurement Period Adjustments | |||
Accounts receivable, measurement period adjustments | (500) | ||
Revenue earned on contracts in progress in excess of billings, measurement period adjustments | 1,700 | ||
Prepaid expenses and other current assets, measurement period adjustments | 200 | ||
Property and equipment, measurement period adjustments | (500) | ||
Intangible assets, measurement period adjustments | 0 | ||
Goodwill, measurement period adjustments | 3,300 | ||
Total assets acquired, measurement period adjustments | 4,200 | ||
Accrued liabilities, measurement period adjustments | 1,600 | ||
Total liabilities assumed and noncontrolling interest, measurement period adjustments | 1,600 | ||
Net assets acquired, measurement period adjustments | $ 2,600 |