Cover page
Cover page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 18, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-37976 | ||
Entity Registrant Name | Southwest Gas Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 81-3881866 | ||
Entity Address, Address Line One | 5241 Spring Mountain Road | ||
Entity Address, Address Line Two | Post Office Box 98510 | ||
Entity Address, City or Town | Las Vegas, | ||
Entity Address, State or Province | NV | ||
Entity Address, Postal Zip Code | 89193-8510 | ||
City Area Code | (702) | ||
Local Phone Number | 876-7237 | ||
Title of 12(b) Security | Southwest Gas Holdings, Inc. Common Stock, $1 par value | ||
Trading Symbol | SWX | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,868,267,468 | ||
Entity Common Stock, Shares Outstanding | 55,056,613 | ||
Documents Incorporated by Reference | Description Part Into Which Incorporated Annual Report to Stockholders for the Year Ended December 31, 2019 2020 Proxy Statement Parts I, II, and IV Part III | ||
Entity Central Index Key | 0001692115 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Southwest Gas Corporation | |||
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 1-7850 | ||
Entity Registrant Name | Southwest Gas Corporation | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Tax Identification Number | 88-0085720 | ||
Entity Address, Address Line One | 5241 Spring Mountain Road | ||
Entity Address, Address Line Two | Post Office Box 98510 | ||
Entity Address, City or Town | Las Vegas, | ||
Entity Address, State or Province | NV | ||
Entity Address, Postal Zip Code | 89193-8510 | ||
City Area Code | (702) | ||
Local Phone Number | 876-7237 | ||
Trading Symbol | SWX | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Central Index Key | 0000092416 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Utility plant: | ||
Gas plant | $ 7,813,221 | $ 7,134,239 |
Less: accumulated depreciation | (2,313,050) | (2,234,029) |
Construction work in progress | 185,026 | 193,028 |
Net utility plant | 5,685,197 | 5,093,238 |
Other property and investments | 784,173 | 623,551 |
Current assets: | ||
Cash and cash equivalents | 49,539 | 85,361 |
Accounts receivable, net of allowances | 474,097 | 413,926 |
Accrued utility revenue | 79,100 | 77,200 |
Income taxes receivable, net | 31,751 | 14,653 |
Deferred purchased gas costs | 44,412 | 4,928 |
Prepaid and other current assets | 180,957 | 243,701 |
Total current assets | 859,856 | 839,769 |
Noncurrent assets: | ||
Goodwill | 343,023 | 359,045 |
Deferred income taxes | 856 | 1,264 |
Deferred charges and other assets | 496,943 | 440,862 |
Total noncurrent assets | 840,822 | 801,171 |
Total assets | 8,170,048 | 7,357,729 |
Capitalization: | ||
Common stock | 56,637 | 54,656 |
Additional paid-in capital | 1,466,937 | 1,305,769 |
Accumulated other comprehensive income (loss), net | (56,732) | (52,668) |
Retained earnings | 1,039,072 | 944,285 |
Total Southwest Gas Holdings, Inc. equity | 2,505,914 | 2,252,042 |
Noncontrolling interest | 0 | (452) |
Total equity | 2,505,914 | 2,251,590 |
Redeemable noncontrolling interest | 84,542 | 81,831 |
Long-term debt, less current maturities | 2,300,482 | 2,107,258 |
Total capitalization | 4,890,938 | 4,440,679 |
Commitments and contingencies (Note 10) | ||
Current liabilities: | ||
Current maturities of long-term debt | 163,512 | 33,060 |
Short-term debt | 211,000 | 152,000 |
Accounts payable | 238,921 | 248,993 |
Customer deposits | 69,165 | 67,940 |
Income taxes payable, net | 2,069 | 1,083 |
Accrued general taxes | 48,160 | 43,560 |
Accrued interest | 21,329 | 21,369 |
Deferred purchased gas costs | 60,755 | 79,762 |
Other current liabilities | 264,950 | 290,878 |
Total current liabilities | 1,079,861 | 938,645 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits, net | 599,840 | 529,201 |
Accumulated removal costs | 395,000 | 383,000 |
Other deferred credits and other long-term liabilities | 1,204,409 | 1,066,204 |
Total deferred income taxes and other credits | 2,199,249 | 1,978,405 |
Total capitalization and liabilities | 8,170,048 | 7,357,729 |
Southwest Gas Corporation | ||
Utility plant: | ||
Gas plant | 7,813,221 | 7,134,239 |
Less: accumulated depreciation | (2,313,050) | (2,234,029) |
Construction work in progress | 185,026 | 193,028 |
Net utility plant | 5,685,197 | 5,093,238 |
Other property and investments | 133,787 | 116,146 |
Current assets: | ||
Cash and cash equivalents | 40,489 | 31,962 |
Accounts receivable, net of allowances | 150,793 | 140,057 |
Accrued utility revenue | 79,100 | 77,200 |
Income taxes receivable, net | 25,901 | 13,444 |
Deferred purchased gas costs | 44,412 | 4,928 |
Prepaid and other current assets | 165,639 | 229,562 |
Total current assets | 506,334 | 497,153 |
Noncurrent assets: | ||
Goodwill | 10,095 | 10,095 |
Deferred charges and other assets | 463,333 | 424,952 |
Total noncurrent assets | 473,428 | 435,047 |
Total assets | 6,798,746 | 6,141,584 |
Capitalization: | ||
Common stock | 49,112 | 49,112 |
Additional paid-in capital | 1,229,083 | 1,065,242 |
Accumulated other comprehensive income (loss), net | (55,151) | (49,049) |
Retained earnings | 782,108 | 717,155 |
Total Southwest Gas Holdings, Inc. equity | 2,005,152 | 1,782,460 |
Total equity | 2,005,152 | 1,782,460 |
Long-term debt, less current maturities | 1,991,333 | 1,818,669 |
Total capitalization | 3,996,485 | 3,601,129 |
Commitments and contingencies (Note 10) | ||
Current liabilities: | ||
Current maturities of long-term debt | 125,000 | 0 |
Short-term debt | 194,000 | 152,000 |
Accounts payable | 149,368 | 184,982 |
Customer deposits | 69,165 | 67,940 |
Accrued general taxes | 48,160 | 43,560 |
Accrued interest | 21,256 | 20,243 |
Deferred purchased gas costs | 60,755 | 79,762 |
Payable to parent | 844 | 472 |
Other current liabilities | 126,573 | 94,136 |
Total current liabilities | 795,121 | 643,095 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits, net | 539,050 | 490,458 |
Accumulated removal costs | 395,000 | 383,000 |
Other deferred credits and other long-term liabilities | 1,073,090 | 1,023,902 |
Total deferred income taxes and other credits | 2,007,140 | 1,897,360 |
Total capitalization and liabilities | $ 6,798,746 | $ 6,141,584 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par (in USD per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, issued (in shares) | 55,007,433 | 53,026,848 |
Common stock, outstanding (in shares) | 55,007,433 | 53,026,848 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating revenues: | |||
Gas operating revenues | $ 1,368,939 | $ 1,357,728 | $ 1,302,308 |
Utility infrastructure services revenues | 1,750,978 | 1,522,285 | 1,246,484 |
Total operating revenues | 3,119,917 | 2,880,013 | 2,548,792 |
Operating expenses: | |||
Net cost of gas sold | 385,164 | 419,388 | 355,045 |
Operations and maintenance | 424,150 | 406,393 | 392,763 |
Depreciation and amortization | 303,237 | 249,212 | 250,951 |
Taxes other than income taxes | 62,328 | 59,898 | 57,946 |
Utility infrastructure services expenses | 1,573,227 | 1,387,689 | 1,148,963 |
Total operating expenses | 2,748,106 | 2,522,580 | 2,205,668 |
Operating income | 371,811 | 357,433 | 343,124 |
Other income and (expenses): | |||
Net interest deductions | (109,226) | (96,671) | (78,064) |
Other income (deductions) | 10,085 | (17,426) | (6,030) |
Total other income and (expenses) | (99,141) | (114,097) | (84,094) |
Income before income taxes | 272,670 | 243,336 | 259,030 |
Income tax expense | 56,023 | 61,684 | 65,088 |
Net income | 216,647 | 181,652 | 193,942 |
Net income (loss) attributable to noncontrolling interests | 2,711 | (625) | 101 |
Net income attributable to Southwest Gas Holdings, Inc. | $ 213,936 | $ 182,277 | $ 193,841 |
Earnings per share: | |||
Basic earnings per share (in USD per share) | $ 3.94 | $ 3.69 | $ 4.04 |
Diluted earnings per share (in USD per share) | $ 3.94 | $ 3.68 | $ 4.04 |
Weighted average shares: | |||
Basic (in shares) | 54,245 | 49,419 | 47,965 |
Diluted (in shares) | 54,312 | 49,476 | 47,991 |
Southwest Gas Corporation | |||
Operating revenues: | |||
Gas operating revenues | $ 1,368,939 | $ 1,357,728 | $ 1,302,308 |
Operating expenses: | |||
Net cost of gas sold | 385,164 | 419,388 | 355,045 |
Operations and maintenance | 422,174 | 404,813 | 391,321 |
Depreciation and amortization | 215,620 | 191,816 | 201,922 |
Taxes other than income taxes | 62,328 | 59,898 | 57,946 |
Total operating expenses | 1,085,286 | 1,075,915 | 1,006,234 |
Operating income | 283,653 | 281,813 | 296,074 |
Other income and (expenses): | |||
Net interest deductions | (95,026) | (81,740) | (69,733) |
Other income (deductions) | 9,517 | (17,240) | (6,388) |
Total other income and (expenses) | (85,509) | (98,980) | (76,121) |
Income before income taxes | 198,144 | 182,833 | 219,953 |
Income tax expense | 34,973 | 43,991 | 63,135 |
Net income | $ 163,171 | $ 138,842 | $ 156,818 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income | $ 216,647 | $ 181,652 | $ 193,942 |
Defined benefit pension plans: | |||
Net actuarial loss | (54,026) | (15,524) | (32,701) |
Amortization of prior service cost | 966 | 1,015 | 828 |
Amortization of net actuarial loss | 17,766 | 25,549 | 15,776 |
Prior service cost | (1,426) | 0 | 0 |
Regulatory adjustment | 28,077 | (6,257) | 12,590 |
Net defined benefit pension plans | (8,643) | 4,783 | (3,507) |
Forward-starting interest rate swaps (“FSIRS”): | |||
Amounts reclassified into net income | 2,541 | 2,541 | 2,073 |
Net forward-starting interest rate swaps | 2,541 | 2,541 | 2,073 |
Foreign currency translation adjustments | 2,038 | (3,010) | 1,771 |
Total other comprehensive income (loss), net of tax | (4,064) | 4,314 | 337 |
Comprehensive income | 212,583 | 185,966 | 194,279 |
Comprehensive income (loss) attributable to noncontrolling interests | 2,711 | (625) | 112 |
Comprehensive income attributable to Southwest Gas Holdings, Inc. | 209,872 | 186,591 | 194,167 |
Southwest Gas Corporation | |||
Net income | 163,171 | 138,842 | 156,818 |
Defined benefit pension plans: | |||
Net actuarial loss | (54,026) | (15,524) | (32,701) |
Amortization of prior service cost | 966 | 1,015 | 828 |
Amortization of net actuarial loss | 17,766 | 25,549 | 15,776 |
Prior service cost | (1,426) | 0 | 0 |
Regulatory adjustment | 28,077 | (6,257) | 12,590 |
Net defined benefit pension plans | (8,643) | 4,783 | (3,507) |
Forward-starting interest rate swaps (“FSIRS”): | |||
Amounts reclassified into net income | 2,541 | 2,541 | 2,073 |
Net forward-starting interest rate swaps | 2,541 | 2,541 | 2,073 |
Total other comprehensive income (loss), net of tax | (6,102) | 7,324 | (1,434) |
Comprehensive income | $ 157,069 | $ 146,166 | $ 155,384 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOW FROM OPERATING ACTIVITIES: | |||
Net income | $ 216,647 | $ 181,652 | $ 193,942 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 303,237 | 249,212 | 250,951 |
Deferred income taxes | 54,162 | 51,041 | 63,389 |
Changes in current assets and liabilities: | |||
Accounts receivable, net of allowances | (54,245) | (15,862) | (40,947) |
Accrued utility revenue | (1,900) | 1,000 | (2,000) |
Deferred purchased gas costs | (58,491) | 82,574 | (95,608) |
Accounts payable | (1,865) | 11,778 | 19,961 |
Accrued taxes | 5,243 | (11,955) | 2,112 |
Other current assets and liabilities | 74,137 | (54,073) | (8,203) |
Gains on sale of equipment | (5,473) | (1,703) | (4,196) |
Changes in undistributed stock compensation | 6,896 | 6,111 | 10,888 |
Equity AFUDC | (4,161) | (3,627) | (2,296) |
Changes in deferred charges and other assets | (21,051) | (5,738) | (22,269) |
Changes in other liabilities and deferred credits | (12,764) | 38,446 | 4,231 |
Net cash provided by operating activities | 500,372 | 528,856 | 369,955 |
CASH FLOW FROM INVESTING ACTIVITIES: | |||
Construction expenditures and property additions | (938,148) | (765,914) | (623,649) |
Acquisition of businesses, net of cash acquired | (47,638) | (251,373) | (94,204) |
Changes in customer advances | 19,001 | 13,463 | 323 |
Other inflows | 15,153 | 4,341 | 16,645 |
Net cash used in investing activities | (951,632) | (999,483) | (700,885) |
CASH FLOW FROM FINANCING ACTIVITIES: | |||
Issuance of common stock, net | 157,946 | 354,402 | 41,155 |
Dividends paid | (116,127) | (100,240) | (92,130) |
Centuri distribution to redeemable noncontrolling interest | 0 | 0 | (204) |
Issuance of long-term debt, net | 531,596 | 565,172 | 407,063 |
Retirement of long-term debt | (213,789) | (237,758) | (338,969) |
Change in credit facility and commercial paper | 0 | 0 | 145,000 |
Change in short-term debt | 59,000 | (62,500) | 214,500 |
Principal payments on capital lease obligations | (212) | (648) | (980) |
Redemption of Centuri shares from noncontrolling parties | 0 | 0 | (23,000) |
Withholding remittance – share-based compensation | (1,858) | (3,110) | (3,176) |
Other | (1,276) | (2,744) | (3,074) |
Net cash provided by (used in) financing activities | 415,280 | 512,574 | 346,185 |
Effects of currency translation on cash and cash equivalents | 158 | (208) | 301 |
Change in cash and cash equivalents | (35,822) | 41,739 | 15,556 |
Cash and cash equivalents at beginning of period | 85,361 | 43,622 | 28,066 |
Cash and cash equivalents at end of period | 49,539 | 85,361 | 43,622 |
Supplemental information: | |||
Interest paid, net of amounts capitalized | 102,258 | 86,562 | 71,943 |
Income taxes paid (received), net | 2,752 | 1,221 | 5,673 |
Southwest Gas Corporation | |||
CASH FLOW FROM OPERATING ACTIVITIES: | |||
Net income | 163,171 | 138,842 | 156,818 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 215,620 | 191,816 | 201,922 |
Deferred income taxes | 33,681 | 42,999 | 67,169 |
Changes in current assets and liabilities: | |||
Accounts receivable, net of allowances | (10,737) | (20,309) | (7,902) |
Accrued utility revenue | (1,900) | 1,000 | (2,000) |
Deferred purchased gas costs | (58,491) | 82,574 | (95,608) |
Accounts payable | (27,473) | 23,408 | 4,545 |
Accrued taxes | 8,895 | (18,732) | 10,383 |
Other current assets and liabilities | 89,171 | (91,444) | (13,726) |
Changes in undistributed stock compensation | 5,146 | 5,355 | 9,288 |
Equity AFUDC | (4,161) | (3,627) | (2,296) |
Changes in deferred charges and other assets | (31,767) | (7,049) | (22,918) |
Changes in other liabilities and deferred credits | (13,361) | 37,669 | 3,541 |
Net cash provided by operating activities | 367,794 | 382,502 | 309,216 |
CASH FLOW FROM INVESTING ACTIVITIES: | |||
Construction expenditures and property additions | (778,748) | (682,869) | (560,448) |
Changes in customer advances | 19,001 | 13,463 | 323 |
Other inflows | (95) | 14 | 2,741 |
Net cash used in investing activities | (759,842) | (669,392) | (557,384) |
CASH FLOW FROM FINANCING ACTIVITIES: | |||
Contributions from parent | 159,936 | 113,549 | 41,359 |
Dividends paid | (95,900) | (87,000) | (81,497) |
Issuance of long-term debt, net | 297,222 | 297,495 | 0 |
Retirement of long-term debt | 0 | 0 | (25,000) |
Change in credit facility and commercial paper | 0 | 0 | 145,000 |
Change in short-term debt | 42,000 | (39,000) | 191,000 |
Withholding remittance – share-based compensation | (1,858) | (3,110) | (3,176) |
Other | (825) | (1,028) | (596) |
Net cash provided by (used in) financing activities | 400,575 | 280,906 | 267,090 |
Change in cash and cash equivalents | 8,527 | (5,984) | 18,922 |
Cash and cash equivalents at beginning of period | 31,962 | 37,946 | 19,024 |
Cash and cash equivalents at end of period | 40,489 | 31,962 | 37,946 |
Supplemental information: | |||
Interest paid, net of amounts capitalized | 88,658 | 73,805 | 64,790 |
Income taxes paid (received), net | $ 678 | $ (5,856) | $ (7,854) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Southwest Gas Corporation | Common Stock | Common StockSouthwest Gas Corporation | Additional paid-in capital | Additional paid-in capitalSouthwest Gas Corporation | Accumulated other comprehensive loss | Accumulated other comprehensive lossSouthwest Gas Corporation | Retained earnings | Retained earningsSouthwest Gas Corporation | Southwest Gas Holdings, Inc. | Noncontrolling interest |
Beginning balance (in shares) at Dec. 31, 2016 | 47,482,000 | 47,482,000 | ||||||||||
Beginning balance at Dec. 31, 2016 | $ 49,112 | $ 49,112 | $ 903,123 | $ 897,346 | $ (48,008) | $ (45,639) | $ 759,263 | $ 767,061 | $ (2,217) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Common stock issuances (in shares) | 608,000 | |||||||||||
Common stock issuances | $ 608 | 52,209 | ||||||||||
Change in ownership of noncontrolling interest | 0 | 0 | ||||||||||
Foreign currency exchange translation adjustment | 1,760 | |||||||||||
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax | (3,507) | (3,507) | ||||||||||
FSIRS amounts reclassified to net income, net of tax | $ 2,073 | $ 2,073 | 2,073 | 2,073 | ||||||||
Reclassification of excess deferred taxes | 0 | 0 | 0 | 0 | ||||||||
Net income (loss) | 193,841 | 156,818 | (148) | |||||||||
Redemption value adjustments | (355) | |||||||||||
Distribution to Southwest Gas Holdings, Inc. investment in discontinued operations | (182,773) | |||||||||||
Share-based compensation | 10,062 | (784) | ||||||||||
Contributions from Southwest Gas Holdings, Inc. | 41,359 | |||||||||||
Dividends declared | (95,351) | (81,129) | ||||||||||
Ending balance (in shares) at Dec. 31, 2017 | 48,090,000 | 47,482,000 | ||||||||||
Ending balance at Dec. 31, 2017 | $ 1,812,403 | 1,609,999 | $ 49,720 | $ 49,112 | 955,332 | 948,767 | (47,682) | (47,073) | 857,398 | 659,193 | $ 1,814,768 | (2,365) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Dividends declared per share (in USD per share) | $ 1,980 | |||||||||||
Common stock issuances (in shares) | 4,936,000 | |||||||||||
Common stock issuances | $ 4,936 | 353,147 | ||||||||||
Change in ownership of noncontrolling interest | (2,710) | 2,710 | ||||||||||
Foreign currency exchange translation adjustment | (3,010) | |||||||||||
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax | 4,783 | 4,783 | ||||||||||
FSIRS amounts reclassified to net income, net of tax | $ 2,541 | 2,541 | 2,541 | 2,541 | ||||||||
Reclassification of excess deferred taxes | (9,300) | (9,300) | 9,300 | 9,300 | ||||||||
Net income (loss) | 182,277 | 138,842 | (797) | |||||||||
Redemption value adjustments | 0 | |||||||||||
Distribution to Southwest Gas Holdings, Inc. investment in discontinued operations | 0 | |||||||||||
Share-based compensation | 2,926 | (680) | ||||||||||
Contributions from Southwest Gas Holdings, Inc. | 113,549 | |||||||||||
Dividends declared | (104,690) | (89,500) | ||||||||||
Ending balance (in shares) at Dec. 31, 2018 | 53,026,848 | 53,026,000 | 47,482,000 | |||||||||
Ending balance at Dec. 31, 2018 | $ 2,251,590 | 1,782,460 | $ 54,656 | $ 49,112 | 1,305,769 | 1,065,242 | (52,668) | (49,049) | 944,285 | 717,155 | 2,252,042 | (452) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Dividends declared per share (in USD per share) | $ 2,080 | |||||||||||
Common stock issuances (in shares) | 1,981,000 | |||||||||||
Common stock issuances | $ 1,981 | 161,620 | ||||||||||
Change in ownership of noncontrolling interest | (452) | 452 | ||||||||||
Foreign currency exchange translation adjustment | 2,038 | |||||||||||
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax | (8,643) | (8,643) | ||||||||||
FSIRS amounts reclassified to net income, net of tax | $ 2,541 | 2,541 | 2,541 | 2,541 | ||||||||
Reclassification of excess deferred taxes | 0 | 0 | 0 | 0 | ||||||||
Net income (loss) | 213,936 | 163,171 | 0 | |||||||||
Redemption value adjustments | 0 | |||||||||||
Distribution to Southwest Gas Holdings, Inc. investment in discontinued operations | 0 | |||||||||||
Share-based compensation | 3,905 | (618) | ||||||||||
Contributions from Southwest Gas Holdings, Inc. | 159,936 | |||||||||||
Dividends declared | (119,149) | (97,600) | ||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 55,007,433 | 55,007,000 | ||||||||||
Ending balance at Dec. 31, 2019 | $ 2,505,914 | $ 2,005,152 | $ 56,637 | $ 1,466,937 | $ 1,229,083 | $ (56,732) | $ (55,151) | $ 1,039,072 | $ 782,108 | $ 2,505,914 | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Dividends declared per share (in USD per share) | $ 2,180 |
Background, Organization and Su
Background, Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 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. This is a combined annual report of Southwest Gas Holdings, Inc. and its subsidiaries (the “Company”) and Southwest Gas Corporation and its subsidiaries (“Southwest” or the “natural gas operations” segment). The notes to the consolidated financial statements apply to both entities. Southwest Gas Holdings, Inc. is a holding company, owning all of the shares of common stock of Southwest and all of the shares of common stock of Centuri Group, Inc. (“Centuri” or the “utility infrastructure services” segment). At the annual meeting of stockholders of Southwest Gas Holdings, Inc., held on May 2, 2019, stockholders voted to approve changing the state of incorporation for Southwest Gas Holdings, Inc. from California to Delaware. The reincorporation became effective in September 2019. 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 2018, Centuri acquired an 80% interest in Linetec, thereby expanding its operations in the southeast region of the U.S. See Note 17 - Business Acquisitions . Basis of Presentation. The Company follows accounting principles generally accepted in the United States (“U.S. GAAP”) in accounting for all of its businesses. Unless specified otherwise, all amounts are in U.S. dollars. Accounting for natural gas utility operations conforms with U.S. GAAP as applied to rate-regulated companies and as prescribed by federal agencies and commissions of the various states in which the utility operates. The preparation of financial statements in conformity with U.S. GAAP 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. 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 acquisition of Linetec. Consolidation. The accompanying financial statements are presented on a consolidated basis for Southwest Gas Holdings, Inc. and all subsidiaries and Southwest Gas Corporation and all subsidiaries as of December 31, 2019 (except those accounted for using the equity method as discussed below). All significant intercompany balances and transactions have been eliminated with the exception of transactions between Southwest and Centuri in accordance with accounting treatment for rate-regulated entities. Centuri, through its subsidiaries, holds a 50% interest in W.S. Nicholls Western Construction Ltd. (“Western”), a Canadian infrastructure services company that is a variable interest entity. Centuri determined that it is not the primary beneficiary of the entity due to a shared-power structure; therefore, Centuri does not consolidate the entity and has recorded its investment, and results related thereto, using the equity method. The investment in Western, related earnings, and dividends received from Western in 2019 and 2018 were not significant. Centuri’s maximum exposure to loss as a result of its involvement with Western was estimated at $12.2 million as of December 31, 2019 . 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 the PBOP required to be recorded and/or disclosed at fair value. The Company uses prices and inputs that are current as of the measurement date, and recognizes transfers between levels at either the actual date of an event or a change in circumstance that caused the transfer. Net Utility Plant. Net utility plant includes gas plant at original cost, less the accumulated provision for depreciation and amortization, plus the unamortized balance of acquisition adjustments. Original cost generally includes contracted services, material, payroll, and related costs such as taxes and certain benefits, general and administrative expenses, and an allowance for funds used during construction, less contributions in aid of construction. Other Property and Investments. Other property and investments on Southwest’s and the Company’s Consolidated Balance Sheets includes: December 31, (Thousands of dollars) 2019 2018 Southwest Gas Corporation: Net cash surrender value of COLI policies $ 132,072 $ 114,405 Other property 1,715 1,741 Total Southwest Gas Corporation 133,787 116,146 Centuri property, equipment, and intangibles 983,905 792,191 Centuri accumulated provision for depreciation and amortization (352,333 ) (298,939 ) Other property 18,814 14,153 Total Southwest Gas Holdings, Inc. $ 784,173 $ 623,551 Included in the table above are the net cash surrender values of company-owned life insurance (“COLI”) policies. 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. Intangible Assets . Intangible assets (other than goodwill) are amortized using the straight-line method to reflect the pattern of economic benefits consumed over the estimated periods benefited. The recoverability of intangible assets is evaluated when events or circumstances indicate that a revision of estimated useful lives is warranted or that an intangible asset may be impaired. The intangible assets associated with utility infrastructure services businesses previously acquired include those most recently added from the Linetec acquisition in 2018. All have finite lives. These intangible assets are included in Other property and investments on the Company’s Consolidated Balance Sheets. Centuri’s intangible assets, not including goodwill, at December 31, 2019 and 2018 , respectively, were as follows: December 31, 2019 (Thousands of dollars) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 154,186 $ (20,735 ) $ 133,451 Trade names and trademarks 23,353 (6,754 ) 16,599 Customer contracts backlog 270 (252 ) 18 Noncompete agreements 2,045 (1,602 ) 443 Total $ 179,854 $ (29,343 ) $ 150,511 December 31, 2018 Customer relationships $ 152,533 $ (11,716 ) $ 140,817 Trade names and trademarks 23,013 (5,234 ) 17,779 Customer contracts backlog 270 (3 ) 267 Noncompete agreements 2,022 (1,064 ) 958 Total $ 177,838 $ (18,017 ) $ 159,821 Amortization expense for the acquired intangible assets listed above for the years ended December 31, 2019 , 2018 , and 2017 was $10.7 million , $7.6 million , and $4.1 million , respectively. The estimated future amortization of the intangible assets for the next five years and thereafter is as follows: (Thousands of dollars) 2020 $ 10,722 2021 10,303 2022 10,215 2023 10,215 2024 10,215 Thereafter 98,841 Total $ 150,511 See Note 2 - Utility Plant and Leases for additional information regarding natural gas operations intangible assets . Note 17 - Business Acquisitions includes detailed information about intangible assets purchased in association with the Linetec acquisition. Cash and Cash Equivalents. For purposes of reporting consolidated cash flows, cash and cash equivalents includes cash on hand and financial instruments with original 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 $23.5 million and $26.7 million , respectively at December 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 year end that are included in accounts payable. Amounts related to such activities were not significant for the periods presented herein. Also, see Note 2 - Utility Plant and Leases for information related to right-of-use assets obtained in exchange for lease liabilities, which are non-cash investing and financing activities. Right-of-use assets and lease liabilities are also subject to non-cash impacts as a result of other factors, such as lease terminations and modifications. Income Taxes. The asset and liability method of accounting is utilized for the recognition of income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. For regulatory and financial reporting purposes, investment tax credits (“ITC”) related to gas utility operations are deferred and amortized over the life of related fixed assets. As of December 31, 2019 , the Company had cumulative book earnings of approximately $32 million in its foreign jurisdiction. Management previously asserted and continues to assert that all the earnings of Centuri’s Canadian subsidiaries will be permanently reinvested in Canada. As a result, no U.S. deferred income taxes have been recorded related to cumulative foreign earnings. The Financial Accounting Standards Board (the “FASB”) issued guidance to allow an accounting policy election of either (i) treating taxes attributable to future taxable income related to G lobal Intangible Low-Taxed Income (“GILTI”) as a current period expense when incurred or (ii) recognizing deferred taxes for temporary differences expected to reverse as GILTI in future years. The Company has elected to treat GILTI as a current period cost when incurred and has considered the estimated 2019 GILTI impact in its 2019 tax expense, which was immaterial. Deferred Purchased Gas Costs. The various regulatory commissions have established procedures to enable Southwest to adjust its billing rates for changes in the cost of natural gas purchased. The difference between the current cost of gas purchased and the cost of gas recovered in billed rates is deferred. Generally, these deferred amounts are recovered or refunded within one year. Prepaid and other current assets . Prepaid and other current assets for Southwest and the Company include gas pipe materials and operating supplies of $57 million in 2019 and $56 million in 2018 (carried at weighted average cost), and also include $33 million in 2019 and $74 million in 2018 related to a regulatory asset associated with the Arizona decoupling mechanism (an alternative revenue program). Goodwill. As required by U.S. GAAP, goodwill is assessed for impairment annually, or more frequently, if circumstances indicate impairment to the carrying value of goodwill may have occurred. The goodwill impairment analysis is conducted as of October 1st each year and may start with an assessment of qualitative factors (commonly referred to as Step 0) to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the qualitative factors, management determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if management does not perform a qualitative assessment, a Step 1 impairment test will be performed. 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. The Company and Southwest determined that it is not more likely than not that the fair value of the reporting units was less than their carrying amounts in either 2019 or 2018 . Thus, no impairment was recorded in either year. Goodwill on the Company’s Consolidated Balance Sheet includes : (Thousands of dollars) Natural Gas Operations Utility Infrastructure Services Total Company Balance, December 31, 2017 $ 10,095 $ 169,219 $ 179,314 Measurement-period adjustments - Neuco acquisition — 182 182 Goodwill from Linetec acquisition — 188,494 188,494 Foreign currency translation adjustment — (8,945 ) (8,945 ) Balance, December 31, 2018 10,095 348,950 359,045 Measurement-period adjustments - Linetec acquisition — (21,172 ) (21,172 ) Foreign currency translation adjustment — 5,150 5,150 Balance, December 31, 2019 $ 10,095 $ 332,928 $ 343,023 Other Current Liabilities. Management recognizes in its balance sheets various liabilities that are expected to be settled through future cash payment within the next twelve months, including certain regulatory liabilities (refer to Note 5 - Regulatory Assets and Liabilities ), customary accrued expenses for employee compensation and benefits, and declared but unpaid dividends. Amounts included in the Consolidated Balance Sheet of the Company as of December 31, 2018 reflect $75.6 million in unremitted amounts associated with the Linetec acquisition noted above. Accumulated Removal Costs. Approved regulatory practices allow Southwest to include in depreciation expense a component intended to recover removal costs associated with utility plant retirements. In accordance with the Securities and Exchange Commission (“SEC”) position on presentation of these amounts, management reclassifies estimated removal costs from accumulated depreciation to accumulated removal costs within the liabilities section of the Consolidated Balance Sheets. Management regularly updates the estimated accumulated removal costs as amounts fluctuate between periods depending on the level of replacement work performed, the estimated cost of removal in rates, and the actual cost of removal experienced. Gas Operating Revenues. Southwest recognizes revenue when it satisfies its performance by transferring gas to the customer. Natural gas is delivered and “consumed” by the customer simultaneously. Revenues are recorded when customers are billed. Customer billings are substantially based on monthly meter reads and include certain other charges assessed monthly, and are calculated in accordance with applicable tariffs and state and local laws, regulations, and related agreements. An estimate of the margin associated with natural gas service provided, but not yet billed, to residential and commercial customers from the latest meter read date to the end of the reporting period is also recognized as accrued utility revenue. Revenues also include the net impacts of margin tracker/decoupling accruals based on criteria in U.S. GAAP for rate-regulated entities associated with alternative revenue programs. All of Southwest’s service territories have decoupled rate structures, which are designed to eliminate the direct link between volumetric sales and revenue, thereby mitigating the impacts of unusual weather variability and conservation on margin. See Note 3 - Revenue . Utility Infrastructure Services Revenues. The majority of Centuri contracts are performed under unit-price contracts. Generally, these contracts state prices per unit of installation. Typical installations are accomplished in a few weeks or less. Revenues are recorded as installations are completed. Revenues are recorded for long-term fixed-price contracts in a pattern that reflects the transfer of control of promised goods and services to the customer over time. The amount of revenue recognized on fixed-price contracts is based on costs expended to date relative to anticipated final contract costs. Changes in job performance, job conditions, and final contract settlements are factors that influence management’s assessment of total contract value and the total estimated costs to complete those contracts. Revisions in estimates of costs and earnings during the course of work are reflected in the accounting period in which the facts requiring revision become known. If a loss on a contract becomes known or is anticipated, the entire amount of the estimated ultimate loss is recognized at that time in the financial statements. Some unit-price contracts contain caps that if encroached, trigger revenue and loss recognition similar to a fixed-price contract model. See Note 3 - Revenue . Utility Infrastructure Services Expenses. Centuri’s utility infrastructure services expenses in the Consolidated Statements of Income includes payroll expenses, office and equipment rental costs, subcontractor expenses, training, job-related materials, gains and losses on equipment sales, and professional fees. Net Cost of Gas Sold. Components of net cost of gas sold include natural gas commodity costs (fixed-price and variable-rate), pipeline capacity/transportation costs, and actual settled costs of natural gas derivative instruments. Also included are the net impacts of purchased gas adjustment (“PGA”) deferrals and recoveries, which by their inclusion, result in net cost of gas sold overall that is comparable to amounts included in billed gas operating revenues. Differences between amounts incurred with suppliers, transmission pipelines, etc. and those already included in customer rates, are temporarily deferred in PGA accounts pending inclusion in customer rates. Operations and Maintenance Expense. Operations and maintenance expense includes Southwest’s operating and maintenance costs associated with serving utility customers and maintaining its distribution and transmission systems, uncollectible expense, administrative and general salaries and expense, employee benefits expense excluding relevant non-service cost components (see Note 11 - Pension and Other Postretirement Benefits ), and legal expense (including injuries and damages). Depreciation and Amortization. Utility plant depreciation is computed on the straight-line remaining life method at composite rates considered sufficient to amortize costs over estimated service lives, including components which compensate for removal costs (net of salvage value), and retirements, as approved by the appropriate regulatory agency. When plant is retired from service, the original cost of plant, including cost of removal, less salvage, is charged to the accumulated provision for depreciation. See also discussion regarding Accumulated Removal Costs above. Other regulatory assets, including acquisition adjustments, are amortized when appropriate, over time periods authorized by regulators. Non-utility and utility infrastructure services-related property and equipment are depreciated on a straight-line method based on the estimated useful lives of the related assets. Costs and gains related to refunding utility debt and debt issuance expenses are deferred and amortized over the weighted-average lives of the new issues and become a component of interest expense. Allowance for Funds Used During Construction (“AFUDC”). AFUDC represents the cost of both debt and equity funds used to finance utility construction. AFUDC is capitalized as part of the cost of utility plant. The debt portion of AFUDC is reported in the Company’s and Southwest’s Consolidated Statements of Income as an offset to Net interest deductions and the equity portion is reported as Other income. Utility plant construction costs, including AFUDC, are recovered in authorized rates through depreciation when completed projects are placed into operation, and general rate relief is requested and granted. (Thousands of dollars) 2019 2018 2017 AFUDC: Debt portion $ 4,558 $ 3,264 $ 1,666 Equity portion 4,161 3,627 2,296 AFUDC capitalized as part of utility plant $ 8,719 $ 6,891 $ 3,962 AFUDC rate 5.36 % 5.85 % 5.95 % Other Income (Deductions). The following table provides the composition of significant items included in Other income (deductions) on the Consolidated Statements of Income: (Thousands of dollars) 2019 2018 2017 Southwest Gas Corporation – natural gas operations segment: Change in COLI policies $ 17,400 $ (3,200 ) $ 10,300 Interest income 6,356 6,020 2,784 Equity AFUDC 4,161 3,627 2,296 Other components of net periodic benefit cost (15,059 ) (21,059 ) (19,424 ) Miscellaneous income and (expense) (3,341 ) (2,628 ) (2,344 ) Southwest Gas Corporation – total other income (deductions) 9,517 (17,240 ) (6,388 ) Utility infrastructure services segment: Interest income — 88 3 Foreign transaction gain (loss) 546 (222 ) (754 ) Equity in earnings of unconsolidated investment – Western 439 531 1,052 Miscellaneous income and (expense) (519 ) (635 ) 44 Centuri – total other income (deductions) 466 (238 ) 345 Corporate and administrative 102 52 13 Consolidated Southwest Gas Holdings, Inc. - total other income (deductions) $ 10,085 $ (17,426 ) $ (6,030 ) Included in the table above is the change in COLI policies (including net death benefits recognized). Current tax regulations provide for tax-free treatment of life insurance (death benefit) proceeds. Therefore, changes in the cash surrender value components of COLI policies, as they progress towards the ultimate death benefits, are also recorded without tax consequences. Foreign Currency Translation. Foreign currency-denominated assets and liabilities of consolidated subsidiaries are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of accumulated other comprehensive income within stockholders’ equity. Results of operations of foreign subsidiaries are translated using the monthly weighted-average exchange rates during the respective periods. Gains and losses resulting from foreign currency transactions are included in Other income (expense) of the Company. Gains and losses resulting from intercompany foreign currency transactions that are of a long-term investment nature are reported in Other comprehensive income, if applicable. Earnings Per Share. Basic earnings per share (“EPS”) in each period of this report were calculated by dividing net income attributable to Southwest Gas Holdings, Inc. by the weighted-average number of shares during those periods. Diluted EPS includes additional weighted-average common stock equivalents (performance shares and restricted stock units). Unless otherwise noted, the term “Earnings Per Share” refers to Basic EPS. A reconciliation of the denominator used in the Basic and Diluted EPS calculations is shown in the following table: (In thousands) 2019 2018 2017 Average basic shares 54,245 49,419 47,965 Effect of dilutive securities: Management Incentive Plan shares 12 25 8 Restricted stock units (1) 55 32 18 Average diluted shares 54,312 49,476 47,991 (1) The number of securities granted for 2019 , 2018 , and 2017 includes 46,000 , 23,000 , and 7,000 performance shares, respectively, the total of which was derived by assuming that target performance will be achieved during the relevant performance period. 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 2 - Utility Plant and Leases . Recently issued accounting pronouncements that will be effective in 2020 : In June 2016, the FASB issued ASU 2016-13 “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 utilized, however they may be adapted to reflect the full amount of expected losses, should there be a difference. The update is effective for fiscal years beginning after December 15, 2019 , including interim periods within those fiscal years. The Company and Southwest have completed their evaluation of this standard and will adopt the update as required. Management does not expect the impact to be material to the Company’s or Southwest’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04 “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Under the update, an entity will apply a one-step quantitative test as opposed to a two-step test as currently required 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 of goodwill impairment. The amendments should be applied on a prospective basis and is effective for fiscal and interim periods beginning after December 15, 2019 . The Company and Southwest will apply the update prospectively at the date of adoption during the first quarter of 2020. The amount of any future goodwill impairment calculated under the update could vary from the calculation under the existing guidance. 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, with the exception that the FASB intends for implementation costs associated with hosted arrangements that are service contracts to be included in the same line item in the balance sheet that a prepayment of the fees associated with the arrangement would be presented. Once capitalized, the update also requires the entity to expense the amount capitalized 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. The Company and Southwest will apply the update prospectively at the date of adoption during the first quarter of 2020, and management does not expect the amendment to have a material impact on the Company’s or Southwest’s consolidated financial statements. Recently issued accounting pronouncements that will be effective after 2020 : 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. Early adoption is permitted. Management is evaluating the impacts this update might have on its disclosures. In August 2018, the FASB issued ASU 2018-13 “Fair Value Measurement: Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” The update modifies the disclosure requirements on fair value measurements in Topic 820. The update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Upon adoption, the Company and Southwest will modify their disclosures to conform to the requirements of the update, as applicable. In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The update simplifies the accounting for income taxes by removing certain exceptions to the general principles, as well as improving consistent application in Topic 740 by clarifying and amending existing guidance. The update is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted for periods for which financial statements have not yet been made available for issuance. Management is evaluating the impacts this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures. Subsequent Events. Management moni |
Utility Plant and Leases
Utility Plant and Leases | 12 Months Ended |
Dec. 31, 2019 | |
Regulated Operations [Abstract] | |
Utility Plant and Leases | Note 2 - Utility Plant and Leases Net Utility Plant Net utility plant as of December 31, 2019 and 2018 was as follows: December 31, (Thousands of dollars) 2019 2018 Gas plant: Storage $ 100,908 $ 26,825 Transmission 391,864 386,159 Distribution 6,581,043 6,049,380 General 467,274 416,643 Software and software-related intangibles 256,299 241,158 Other 15,833 14,074 7,813,221 7,134,239 Less: accumulated depreciation and amortization (2,313,050 ) (2,234,029 ) Construction work in progress 185,026 193,028 Net utility plant $ 5,685,197 $ 5,093,238 Utility plant depreciation is computed on the straight-line remaining life method at composite rates considered sufficient to amortize costs over estimated service lives, including components which are intended to compensate for removal costs (net of salvage value), and retirements, based on the processes of regulatory proceedings and related regulatory commission approvals and/or mandates. In 2019 , annual utility depreciation and amortization expense averaged 2.7% of the original cost of depreciable and amortizable property. Average rates in 2018 and 2017 approximated 2.7% and 3.0% . Transmission and Distribution plant are associated with the core natural gas delivery infrastructure, and combined, constitute the majority of gas plant. Annual utility depreciation expense averaged approximately 2.3% of the original cost of depreciable transmission and distribution plant during the period 2017 through 2019 . Depreciation and amortization expense on gas plant, including intangibles, was as follows: (Thousands of dollars) 2019 2018 2017 Depreciation and amortization expense $ 197,358 $ 185,719 $ 187,075 Included in the figures above is amortization of utility intangibles of $13.2 million , $13.6 million , and $14.3 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. T he amounts above exclude regulatory asset and liability amortization. Leases The Company and Southwest adopted FASB Topic 842 as of January 1, 2019. In association with the adoption, the Company recorded adjustments to its 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 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 utilized in the computations 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 up to 7 years , some of which include optional renewal periods. Southwest is currently not a lessor in any significant lease arrangements. 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 up to 18 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. 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. As of December 31, 2019 , Centuri executed lease agreements that had not yet commenced. These lease agreements primarily relate to real estate leases that have terms ranging from January 2020 through March 2030 . Total future lease payments over the lease terms are approximately $5.1 million . In the fourth quarter of 2019, Centuri management determined it was reasonably certain that purchase options related to specified rented equipment would be exercised. As a result, Centuri recorded a finance lease of approximately $13.8 million . The purchase of the equipment by Centuri is expected to occur in 2020. The components of lease expense were as follows: (Thousands of dollars) Year Ended December 31, 2019 Southwest: Operating lease cost $ 1,531 Centuri: Operating lease cost $ 12,235 Finance lease cost: Amortization of ROU assets $ 137 Interest on lease liabilities 34 Total finance lease cost 171 Short-term lease cost 16,217 Total lease cost - Southwest Gas Holdings, Inc. $ 30,154 Supplemental cash flow information related to leases for the year ended December 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 $ 1,278 $ 11,166 $ 12,444 Operating cash flows from finance leases — 33 33 Financing cash flows from finance leases — 212 212 ROU assets obtained in exchange for lease obligations: Operating leases $ 862 $ 23,825 $ 24,687 Finance leases — 13,839 13,839 Supplemental information related to leases, including location in the Consolidated Balance Sheets, is as follows: (Thousands of dollars) December 31, 2019 Southwest: Operating leases: Net utility plant $ 1,443 Other current liabilities $ 723 Other deferred credits and other long-term liabilities 730 Total operating lease liabilities $ 1,453 Weighted average remaining lease term (in years) 2.88 Weighted average discount rate 3.18 % Centuri: Operating leases: Other property and investments $ 78,954 Other current liabilities 8,851 Other deferred credits and other long-term liabilities 73,323 Total operating lease liabilities $ 82,174 Finance leases: Other property and investments $ 14,264 Other current liabilities $ 13,769 Other deferred credits and other long-term liabilities 355 Total finance lease liabilities $ 14,124 Weighted average remaining lease term (in years) Operating leases 10.25 Finance leases 2.13 Weighted average discount rate Operating leases 4.03 % Finance leases 6.10 % With regard to the finance lease balance as of December 31, 2019 , there exist lease provisions for purchase options that meet the “reasonably certain” threshold related to exercise of such options. These amounts were not included in the calculations of the weighted average remaining lease term and discount rate for finance leases above. The following are schedules of maturities of lease liabilities as of December 31, 2019 : (Thousands of dollars) Operating Leases Southwest: 2020 $ 756 2021 376 2022 188 2023 78 2024 56 Thereafter 74 Total lease payments 1,528 Less imputed interest 75 Total $ 1,453 (Thousands of dollars) Operating Leases Finance Leases Centuri: 2020 $ 12,225 $ 13,799 2021 11,235 143 2022 10,613 154 2023 8,823 87 2024 8,065 1 Thereafter 49,862 — Total lease payments 100,823 14,184 Less imputed interest 18,649 60 Total $ 82,174 $ 14,124 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: (Thousands of dollars) 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 As of December 31, 2018, Centuri leased certain construction equipment under capital leases arrangements which were not significant. |
Revenue
Revenue | 12 Months Ended |
Dec. 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 the natural gas operations segment and Centuri encompasses the utility infrastructure services segment. Natural Gas Operations Segment : Southwest recognizes revenue when it satisfies its performance by transferring gas to the customer. Revenues also include the net impacts of margin tracker/decoupling accruals based on criteria in U.S. GAAP for rate-regulated entities associated with alternative revenue programs. Revenues from customer arrangements and from alternative revenue programs are described below. Southwest acts as an agent for state and local taxing authorities in the collection and remittance of a variety of taxes, including sales and use taxes and surcharges. These taxes are not included in Gas operating revenues. Management uses the net classification method to report taxes collected from customers to be remitted to governmental authorities. Southwest generally offers two types of services to its customers: tariff sales and transportation–only service. Tariff sales encompass sales to many types of customers (primarily residential) under various rate schedules, subject to cost-of-service ratemaking, which is based on the rate-regulation of state commissions and the Federal Energy Regulatory Commission (the “FERC”). Southwest provides both the commodity and the related distribution service to nearly all of its approximate 2 million customers, and only several hundred customers (who are eligible to secure their own gas) subscribe to transportation-only service. Also, only a few hundred customers have contracts with stated periods. Natural gas is delivered and consumed by the customer simultaneously. The provision of service is represented by the turn of the meter dial and is the primary representation of the satisfaction of performance obligations of Southwest. The amount billable via regulated rates (both volumetric and fixed monthly rates as part of rate design) corresponds to the value to the customer, and management believes that the amount billable (amount Southwest has the right to invoice) is appropriate to utilize for purposes of recognizing revenue. Estimated amounts remaining unbilled since the last meter read date are restricted from being billed due only to the passage of time and therefore are also recognized for service provided through the balance sheet date. While natural gas service is typically recurring, there is generally not a contract term for utility service. Therefore, the contract term is not generally viewed to extend beyond the service provided to date, and customers can generally terminate service at will. Transportation-only service is also governed by tariff rate provisions. Transportation-only service is generally only available to very large customers under requirements of Southwest’s various tariffs. With this service, customers secure their own gas supply and Southwest provides transportation services to move the customer-supplied gas to the intended location. Southwest concluded that transportation/transmission service is suitable to an “over time” model. Rate structures under Southwest’s regulation for transportation customers include a combination of volumetric charges and monthly “fixed” charges (including charges commonly referred to as capacity charges, demand charges, or reservation charges) as part of the rate design of regulated jurisdictions. These types of fixed charges represent a separate performance obligation associated with standing ready over the period of the month to deliver quantities of gas, regardless of whether the customer takes delivery of any quantity of gas. The performance obligations under these circumstances are satisfied over the course of the month under an output measure of progress based on time, which correlates to the period for which the charges are eligible to be invoiced. Under its regulation, Southwest enters into negotiated rate contracts for those customers located in proximity to another pipeline, which pose a threat of bypassing its distribution system. Southwest may also enter into similar contracts for customers otherwise able to satisfy their energy needs by means of alternative fuel to natural gas. Less than two dozen customers are party to contracts with rate components subject to negotiation. Many rate provisions and terms of service for these less common types of contracts are also subject to regulatory oversight and tariff provisions. The performance obligations for these customers are satisfied similarly to those for other customers by means of transporting/delivering natural gas to the customer. Many or most of the rate components, and structures, for these types of customers are the same as those for similar customers without negotiated rate components; and the negotiated rates are within the parameters of the tariff guidelines. Furthermore, while some of these contracts include contract periods extending over time, including multiple years, as amounts billable under the contract are based on rates in effect for the customer for service provided to date, no significant financing component is deemed to exist. As indicated above, revenues also include the net impacts of margin tracker/decoupling accruals. All of Southwest’s service territories have decoupled rate structures (also referred to as alternative revenue programs) that are designed to eliminate the direct link between volumetric sales and revenue, thereby mitigating the impacts of unusual weather variability and conservation on margin. The primary alternative revenue programs involve permissible adjustments for differences between stated tariff benchmarks and amounts billable through revenue from contracts with customers via existing rates. Such adjustments are recognized monthly in revenue and in the associated regulatory asset/liability accounts in advance of rate adjustments intended to collect or return amounts recognized. Revenues recognized for the adjustment to the benchmarks noted are required to be presented separately from revenues from contracts with customers, and as such, are provided below and identified as alternative revenue program revenue (which excludes recoveries from customers). Gas operating revenues on the 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: December 31, (Thousands of dollars) 2019 2018 2017 Residential $ 972,788 $ 887,220 $ 857,204 Small commercial 249,117 255,083 243,513 Large commercial 48,935 53,192 52,379 Industrial/other 22,074 23,489 22,026 Transportation 92,380 86,990 87,759 Revenue from contracts with customers 1,385,294 1,305,974 1,262,881 Alternative revenue program revenues (deferrals) (25,112 ) 45,979 35,347 Other revenues (a) 8,757 5,775 4,080 Total Gas operating revenues $ 1,368,939 $ 1,357,728 $ 1,302,308 (a) Comprised of various other revenue impacts, including $(4.9) million for 2019 and $(13.5) million for 2018 related to tax reform savings reserves/adjustments. Utility Infrastructure Services Segment : The majority of Centuri contracts are performed under unit-price contracts. Generally, these contracts state prices per unit of installation. Typical installations are accomplished in a few weeks or less. Revenues are recorded as installations are completed. Revenues are recorded for long-term fixed-price contracts in a pattern that reflects the transfer of control of promised goods and services to the customer over time. The amount of revenue recognized on fixed-price contracts is based on costs expended to date relative to anticipated final contract costs (a method of recognition based on inputs). Some unit-price contracts contain caps that if encroached, trigger revenue and loss recognition similar to a fixed-price contract model. Centuri is required to collect taxes imposed by various governmental agencies on the work performed for its customers. These taxes are not included in Utility infrastructure services revenues. Management uses the net classification method to report taxes collected from customers to be remitted to governmental authorities. Centuri derives revenue from the installation, replacement, repair, and maintenance of energy distribution systems, and in developing industrial construction solutions. Centuri has operations in the U.S. and Canada. The majority of Centuri’s revenues are related to contracts for natural gas pipeline replacement and installation work for natural gas utilities. In addition, Centuri performs certain industrial construction activities for various customers and industries. Centuri has two types of agreements with its customers: master services agreements (“MSAs”) and bid contracts. Most of Centuri’s customers supply many of their own materials in order for Centuri to complete its work under the contracts. An MSA identifies most of the terms describing each party’s rights and obligations that will govern future work authorizations. An MSA is often effective for multiple years. A work authorization is issued by the customer to describe the location, timing, and any additional information necessary to complete the work for the customer. The combination of the MSA and the work authorization determines when a contract exists and revenue recognition may begin. Each work authorization is generally a single performance obligation as Centuri is performing a significant integration service. A bid contract is typically a one-time agreement for a specific project that has all necessary terms defining each party’s rights and obligations. Each bid contract is evaluated for revenue recognition individually. Control of assets created under bid contracts generally passes to the customer over time. Bid contracts often have a single performance obligation as Centuri is providing a significant integration service. Centuri’s MSA and bid contracts are characterized as either fixed-price contracts or unit-price contracts for revenue recognition purposes. The cost-to-cost input method is used to measure progress towards the satisfaction of a performance obligation for fixed-price contracts. Input methods result in the recognition of revenue based on the entity’s expended effort toward satisfaction of the performance obligation relative to the total expected effort to satisfy it in full. For unit-price contracts, an output method is used to measure progress towards satisfaction of a performance obligation. Also with regard to unit-price contracts, the output measurement will be the completion of each unit that is required under the contract. Actual revenues and project costs can vary, sometimes substantially, from previous estimates due to changes in a variety of factors, including unforeseen circumstances. These factors, along with other risks inherent in performing fixed-price contracts may cause actual revenues and gross profit for a project to differ from previous estimates and could result in reduced profitability or losses on projects. Changes in these factors may result in revisions to costs and earnings, the impacts for which are recognized in the period in which the changes are identified. Once identified, these types of conditions continue to be evaluated for each project throughout the project term and ongoing revisions in management’s estimates of contract value, cost, and profit are recognized as necessary in the period determined. Centuri categorizes work performed under MSAs and bid contracts into three primary service types: gas construction, electrical construction, and other construction. Gas construction includes work involving previously existing gas pipelines and the installation of new pipelines or service lines. Electrical construction includes work involving installation and maintenance of transmission and distribution lines and storm restoration services. Other construction includes all other work and can include industrial and water utility services. Contracts can have compensation/consideration that is variable. For MSAs, variable consideration is evaluated at the customer level as the terms creating variability in pricing are included within the MSA and are not specific to a work authorization. For multi-year MSAs, variable consideration items are typically determined for each year of the contract and not for the full contract term. For bid contracts, variable consideration is evaluated at the individual contract level. The expected value method or most likely amount method is used based on the nature of the variable consideration. Types of variable consideration include liquidated damages, delay penalties, performance incentives, safety bonuses, payment discounts, and volume rebates. Centuri will typically estimate variable consideration and adjust financial information, as necessary. Change orders involve the modification in scope, price, or both to the current contract, requiring approval by both parties. The existing terms of the contract continue to be accounted for under the current contract until such time as a change order is approved. Once approved, the change order is either treated as a separate contract or as part of the existing contract, as appropriate, under the circumstances. When the scope is agreed upon in the change order but not the price, Centuri estimates the change to the transaction price. The following tables display Centuri’s revenue from contracts with customers disaggregated by service type and contract type: December 31, (Thousands of dollars) 2019 2018 2017 Service Types: Gas infrastructure services $ 1,238,974 $ 1,123,682 $ 891,139 Electric power infrastructure services 247,717 32,629 18,114 Other 264,287 365,974 337,231 Total Utility infrastructure services revenues $ 1,750,978 $ 1,522,285 $ 1,246,484 December 31, (Thousands of dollars) 2019 2018 2017 Contract Types: Master services agreement $ 1,383,377 $ 1,102,412 $ 885,513 Bid contract 367,601 419,873 360,971 Total Utility infrastructure services revenues $ 1,750,978 $ 1,522,285 $ 1,246,484 Unit price contracts $ 1,380,256 $ 1,258,419 $ 968,856 Fixed price contracts 112,924 117,298 127,497 Time and materials contracts 257,798 146,568 150,131 Total Utility infrastructure services revenues $ 1,750,978 $ 1,522,285 $ 1,246,484 The following table provides information about contracts receivable and revenue earned on contracts in progress in excess of billings (contract assets), both of which are included within Accounts receivable, net of allowances, and provides information about amounts billed in excess of revenue earned on contracts (contract liabilities), which are included in Other current liabilities as of December 31, 2019 and 2018 on the Company’s Consolidated Balance Sheets: December 31, (Thousands of dollars) 2019 2018 Contracts receivable, net $ 223,904 $ 186,249 Revenue earned on contracts in progress in excess of billings 99,399 87,520 Amounts billed in excess of revenue earned on contracts 4,525 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. These contract assets are recoverable from Centuri’s customers based upon various measures of performance, including achievement of certain milestones, completion of specified units or completion of a contract. In addition, many of Centuri’s time and materials arrangements are billed in arrears pursuant to contract terms that are standard within the industry, resulting in contract assets and/or unbilled receivables being recorded, as revenue is recognized in advance of billings. Due to the lag in invoicing associated with contractual provisions (or other economic or market conditions that may impact a customer’s business), Centuri’s ability to bill and subsequently collect amounts due may be impacted. These changes may result in the need to record an estimated valuation allowance to adjust contract asset balances to their net realizable value. The amounts billed in excess of revenue earned (contract liability) primarily relate 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 December 31, 2019 was due to revenue recognized of $4.2 million that was included in this balance 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 does not consider/compute an interest component based on the time value of money. Further, because of the short duration of these contracts, the Company 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 December 31, 2019 , Centuri has 48 contracts with 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 December 31, 2019 was $93.6 million . Centuri expects to recognize the remaining performance obligations over approximately the next two 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 will be provided by the customer. Utility infrastructure services contracts receivable consists of the following: December 31, (Thousands of dollars) 2019 2018 Billed on completed contracts and contracts in progress $ 216,268 $ 184,100 Other receivables 8,456 2,588 Contracts receivable, gross 224,724 186,688 Allowance for doubtful accounts (820 ) (439 ) Contracts receivable, net $ 223,904 $ 186,249 |
Receivables and Related Allowan
Receivables and Related Allowances | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Receivables and Related Allowances | Note 4 - Receivables and Related Allowances Business activity with respect to gas utility operations is conducted with customers located within the three-state region of Arizona, Nevada, and California. The table below contains information about the gas utility customer accounts receivable balance (net of allowance) at December 31, 2019 and 2018 , and the percentage of customers in each of the three states, which was consistent with the prior year. December 31, (Thousands of dollars) 2019 2018 Gas utility customer accounts receivable balance $ 148,173 $ 138,149 The following table represents customers by state at December 31, 2019 : Percent of customers by state: Arizona 53 % Nevada 37 % California 10 % Although Southwest seeks to minimize its credit risk related to utility operations by requiring security deposits from new customers, imposing late fees, and actively pursuing collection on overdue accounts, some accounts are ultimately not collected. Customer accounts are subject to collection procedures that vary by jurisdiction (late fee assessment, noticing requirements for disconnection of service, and procedures for actual disconnection and/or reestablishment of service). After disconnection of service, accounts are generally written off approximately two months after inactivation. Dependent upon the jurisdiction, reestablishment of service requires both payment of previously unpaid balances and additional deposit requirements. Provisions for uncollectible accounts are recorded monthly based on experience, customer and rate composition, and write-off processes. They are included in the ratemaking process as a cost of service. The Nevada jurisdictions have a regulatory mechanism associated with the gas cost-related portion of uncollectible accounts. Such amounts are deferred and collected through a surcharge in the ratemaking process. Activity in the allowance account for uncollectibles is summarized as follows: (Thousands of dollars) Allowance for Uncollectibles Balance, December 31, 2016 $ 2,524 Additions charged to expense 2,310 Accounts written off, less recoveries (2,723 ) Balance, December 31, 2017 2,111 Additions charged to expense 2,959 Accounts written off, less recoveries (2,902 ) Balance, December 31, 2018 2,168 Additions charged to expense 3,507 Accounts written off, less recoveries (3,580 ) Balance, December 31, 2019 $ 2,095 At December 31, 2019 , the utility infrastructure services segment (Centuri) had $323.3 million in combined customer accounts and contracts receivable. Both the allowance for uncollectibles and write-offs related to Centuri customers have been insignificant and are not reflected in the table above. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Regulated Operations [Abstract] | |
Regulatory Assets and Liabilities | Note 5 - Regulatory Assets and Liabilities Southwest is subject to the regulation of the Arizona Corporation Commission (“ACC”), the Public Utilities Commission of Nevada (“PUCN”), the California Public Utilities Commission (“CPUC”), and the FERC. Accounting policies of Southwest conform to U.S. GAAP applicable to rate-regulated entities and reflect the effects of the ratemaking process. Accounting treatment for rate-regulated entities allows for deferral as regulatory assets, costs that otherwise would be expensed, if it is probable that future recovery from customers will occur. If rate recovery is no longer probable, due to competition or the actions of regulators, Southwest is required to write-off the related regulatory asset. Regulatory liabilities are recorded if it is probable that revenues will be reduced for amounts that will be credited to customers through the ratemaking process. Southwest management records regulatory assets and liabilities based on decisions of the commissions noted above, including the issuance of regulatory orders and precedents established by these commissions. Southwest has generally been successful in seeking recovery of regulatory assets, and regularly files rate cases in all jurisdictions in part to establish the basis for recovering regulatory assets reflected in accounting records. The following table represents existing regulatory assets and liabilities: December 31, (Thousands of dollars) 2019 2018 Regulatory assets: Accrued pension and other postretirement benefit costs (1) $ 420,114 $ 383,170 Unrealized net loss on non-trading derivatives (Swaps) (2) 10,951 1,862 Deferred purchased gas costs (3) 44,412 4,928 Accrued purchased gas costs (4) 8,000 29,000 Unamortized premium on reacquired debt (5) 18,249 19,599 Accrued absence time (8) 14,519 14,126 Margin, interest- and property tax-tracking (9) 33,380 88,290 Other (10) 33,134 32,616 582,759 573,591 Regulatory liabilities: Deferred purchased gas costs (3) (60,755 ) (79,762 ) Accumulated removal costs (395,000 ) (383,000 ) Unrealized net gain on non-trading derivatives (Swaps) (2) — (144 ) Unamortized gain on reacquired debt (6) (8,181 ) (8,717 ) Regulatory excess deferred taxes and gross-up (7) (455,625 ) (458,834 ) Margin, interest- and property tax-tracking (9) (22,650 ) (7,273 ) Other (10) (4,438 ) (12,638 ) Net regulatory liabilities $ (363,890 ) $ (376,777 ) (1) Included in Deferred charges and other assets on the Consolidated Balance Sheets. Recovery period is greater than five years. (See Note 11 - Pension and Other Postretirement Benefits ). (2) Asset balance is included in Deferred charges and other assets and Prepaid and other assets on the Consolidated Balance Sheets. Liability balance is included in Other current liabilities and Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. The actual amounts, when realized at settlement, become a component of purchased gas costs under Southwest’s PGA mechanisms. (For specific details, see Note 13 - Derivatives ). (3) Balance recovered or refunded on an ongoing basis with interest. (4) Included in Prepaid and other current assets on the Consolidated Balance Sheets. Balance recovered or refunded on an ongoing basis. (5) Included in Deferred charges and other assets on the Consolidated Balance Sheets. Recovered over life of debt instruments. (6) Included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. Amortized over life of debt instruments. (7) U.S. tax reform enacted in December 2017 required a remeasurement and reduction of the net accumulated deferred income tax liability. The reduction (excess accumulated deferred taxes) became a regulatory liability with appropriate tax gross-up. The excess deferred taxes reduce rate base. The tax benefit will be returned to utility customers in accordance with IRS and regulatory requirements. Included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets, except for $3 million which is in Other current liabilities. This amount also includes a $2.7 million gross-up related to contributions in aid of construction. (8) Regulatory recovery occurs on a one-year lag basis through the labor loading process. Included in Prepaid and other current assets on the Consolidated Balance Sheets. (9) Margin tracking/decoupling mechanisms are alternative revenue programs and revenue associated with under-collections (for the difference between authorized margin levels and amounts billed to customers through rates currently) are recognized as revenue so long as recovery is expected to take place within 24 months. Total category asset balances are included in Prepaid and other current assets on the Consolidated Balance Sheets. Total category liability balances are included in Other current liabilities and Other deferred credits and other long-term liabilities. (10) Th e following tables detail the components of Other regulatory assets and liabilities. Other regulatory assets are included in either Prepaid and other current assets or Deferred charges and other assets on the Consolidated Balance Sheets (as indicated). Recovery periods vary. Other regulatory liabilities are included in either Other current liabilities or Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets (as indicated). December 31, (Thousands of dollars) 2019 2018 Other Regulatory Assets: State mandated public purpose programs (including low income and conservation programs) (a) (e) $ 9,172 $ 6,253 Infrastructure replacement programs and similar (b) (e) 8,236 12,486 Environmental compliance programs (c) (e) 5,768 5,046 Other (d) 9,958 8,831 $ 33,134 $ 32,616 a) Included in Prepaid and other current assets on the Consolidated Balance Sheets. b) Included in Deferred charges and other assets on the Consolidated Balance Sheets. c) In 2019 , approximately $5.0 million included in Prepaid and other current assets and $782,000 included in Deferred charges and other assets on the Consolidated Balance Sheets. In 2018 , approximately $4.5 million included in Prepaid and other current assets and $596,000 included in Deferred charges and other assets on the Consolidated Balance Sheets. d) In 2019 , $1.6 million included in Prepaid and other current assets and $8.3 million included in Deferred charges and other assets on the Consolidated Balance Sheets. In 2018 , $197,000 included in Prepaid and other current assets and $8.6 million included in Deferred charges and other assets on the Consolidated Balance Sheets. e) Balance recovered or refunded on an ongoing basis, generally with interest. December 31, (Thousands of dollars) 2019 2018 Other Regulatory Liabilities: State mandated public purpose programs (including low income and conservation programs) (a) (d) $ (308 ) $ (8,598 ) Environmental compliance programs (d) (e) (527 ) — Regulatory accounts for differences related to pension funding (b) (2,476 ) (3,221 ) Other (c) (d) (1,127 ) (819 ) $ (4,438 ) $ (12,638 ) a) Included in Other current liabilities on the Consolidated Balance Sheets. b) Included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. c) In 2019 , $(1.1) million included in Other current liabilities and $(9,000) included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. In 2018 , approximately $(810,000) included in Other current liabilities and $(9,000) included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. d) Balance recovered or refunded on an ongoing basis, generally with interest. e) In 2019 , included in Other current liabilities on the Consolidated Balance Sheet. |
Other Comprehensive Income and
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") | Note 6 - Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") The following information provides insight into amounts impacting the Company’s Other comprehensive income (loss), both before and after-tax impacts, within the Consolidated Statements of Comprehensive Income, which also impact Accumulated other comprehensive income (“AOCI”) in the Consolidated Balance Sheets and the Consolidated Statements of Equity. Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) Year Ended December 31, 2019 2018 2017 (Thousands of dollars) Before- Tax Amount Tax (Expense) or Benefit (1) Net-of- Tax Amount Before- Tax Amount Tax (Expense) or Benefit (1) Net-of- Tax Amount Before- Tax Amount Tax (Expense) or Benefit (1) Net-of- Tax Amount Defined benefit pension plans: Net actuarial gain/(loss) $ (71,087 ) $ 17,061 $ (54,026 ) $ (20,426 ) $ 4,902 $ (15,524 ) $ (43,027 ) $ 10,326 $ (32,701 ) Amortization of prior service cost 1,271 (305 ) 966 1,335 (320 ) 1,015 1,335 (507 ) 828 Amortization of net actuarial (gain)/loss 23,376 (5,610 ) 17,766 33,617 (8,068 ) 25,549 25,445 (9,669 ) 15,776 Prior service cost (1,878 ) 452 (1,426 ) — — — — — — Regulatory adjustment 36,944 (8,867 ) 28,077 (8,233 ) 1,976 (6,257 ) 12,340 250 12,590 Pension plans other comprehensive income (loss) (11,374 ) 2,731 (8,643 ) 6,293 (1,510 ) 4,783 (3,907 ) 400 (3,507 ) FSIRS (designated hedging activities): Amounts reclassified into net income 3,344 (803 ) 2,541 3,345 (804 ) 2,541 3,344 (1,271 ) 2,073 FSIRS other comprehensive income (loss) 3,344 (803 ) 2,541 3,345 (804 ) 2,541 3,344 (1,271 ) 2,073 Total other comprehensive income (loss) –Southwest Gas Corporation (8,030 ) 1,928 (6,102 ) 9,638 (2,314 ) 7,324 (563 ) (871 ) (1,434 ) Foreign currency translation adjustments: Translation adjustments 2,038 — 2,038 (3,010 ) — (3,010 ) 1,771 — 1,771 Foreign currency other comprehensive income (loss) 2,038 — 2,038 (3,010 ) — (3,010 ) 1,771 — 1,771 Total other comprehensive income (loss) – Southwest Gas Holdings, Inc. $ (5,992 ) $ 1,928 $ (4,064 ) $ 6,628 $ (2,314 ) $ 4,314 $ 1,208 $ (871 ) $ 337 (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, tax amounts were calculated using a 38% rate. At December 31, 2017, excess taxes related to pre-tax amounts accumulating in AOCI prior to tax reform were required to remain in the account until the first quarter of 2018, when ASU 2018-02 was adopted, permitting previously stranded amounts to be released from AOCI and applied to Retained earnings. 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, and no repatriation of earnings anticipated, the Company is not recognizing a tax effect or presenting a tax expense or benefit for currency translation adjustments in Other comprehensive income (loss). The estimated amounts that will be amortized from accumulated other comprehensive income or regulatory assets into net periodic benefit cost over the next year are summarized below: (Thousands of dollars) Retirement plan net actuarial loss $ 36,000 SERP net actuarial loss 1,800 PBOP prior service cost 1,200 Approximately $2.5 million of realized losses (net of tax) related to the FSIRS, included in AOCI at December 31, 2019 , will be reclassified into interest expense within the next twelve months as the related interest payments on long-term debt occur. The following table represents a rollforward of AOCI, presented on the Company’s Consolidated Balance Sheets and its Consolidated Statements of Equity: Defined Benefit Plans FSIRS Foreign Currency Items (Thousands of dollars) Before-Tax Tax (Expense) Benefit (4,5) After-Tax (5) Before- Tax Tax 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 ) Net actuarial gain/(loss) (71,087 ) 17,061 (54,026 ) — — — — — — (54,026 ) Translation adjustments — — — — — — 2,038 — 2,038 2,038 Other comprehensive income before reclassifications (71,087 ) 17,061 (54,026 ) — — — 2,038 — 2,038 (51,988 ) FSIRS amounts reclassified from AOCI (1) — — — 3,344 (803 ) 2,541 — — — 2,541 Amortization of prior service cost (2) 1,271 (305 ) 966 — — — — — — 966 Amortization of net actuarial loss (2) 23,376 (5,610 ) 17,766 — — — — — — 17,766 Prior service cost (1,878 ) 452 (1,426 ) — — — — — — (1,426 ) Regulatory adjustment (3) 36,944 (8,867 ) 28,077 — — — — — 28,077 Net current period other (11,374 ) 2,731 (8,643 ) 3,344 (803 ) 2,541 2,038 — 2,038 (4,064 ) Ending Balance AOCI December 31, 2019 $ (66,601 ) $ 15,985 $ (50,616 ) $ (5,966 ) $ 1,431 $ (4,535 ) $ (1,581 ) $ — $ (1,581 ) $ (56,732 ) (1) The FSIRS reclassification amounts are included in Net interest deductions on the Company’s Consolidated Statements of Income. (2) These AOCI components are included in the computation of net periodic benefit cost (see Note 11 - Pension and Other Postretirement Benefits 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 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 Consolidated Balance Sheets: Defined Benefit Plans FSIRS (Thousands of dollars) 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 ) Net actuarial gain/(loss) (71,087 ) 17,061 (54,026 ) — — — (54,026 ) Other comprehensive loss before reclassifications (71,087 ) 17,061 (54,026 ) — — — (54,026 ) FSIRS amounts reclassified from AOCI (6) — — — 3,344 (803 ) 2,541 2,541 Amortization of prior service cost (7) 1,271 (305 ) 966 — — — 966 Amortization of net actuarial loss (7) 23,376 (5,610 ) 17,766 — — — 17,766 Prior service cost (1,878 ) 452 (1,426 ) — — — (1,426 ) Regulatory adjustment (8) 36,944 (8,867 ) 28,077 — — — 28,077 Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation (11,374 ) 2,731 (8,643 ) 3,344 (803 ) 2,541 (6,102 ) Ending Balance AOCI December 31, 2019 $ (66,601 ) $ 15,985 $ (50,616 ) $ (5,966 ) $ 1,431 $ (4,535 ) $ (55,151 ) (6) The FSIRS reclassification amounts are included in Net interest deductions on Southwest’s Consolidated Statements of Income. (7) These AOCI components are included in the computation of net periodic benefit cost (see Note 11 - Pension and Other Postretirement Benefits 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 Deferred charges and other assets on Southwest’s 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: Year Ended December 31, (Thousands of dollars) 2019 2018 Net actuarial loss $ (483,074 ) $ (435,364 ) Prior service cost (3,641 ) (3,033 ) Less: amount recognized in regulatory assets 420,114 383,170 Recognized in AOCI $ (66,601 ) $ (55,227 ) See Note 11 - Pension and Other Postretirement Benefits for more information on the defined benefit pension plans and Note 13 - Derivatives for more information on the FSIRS. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Common Stock | Note 7 - Common Stock Only shares of the Company’s common stock are publicly traded on the New York Stock Exchange, under the ticker symbol “SWX.” Share-based compensation related to Southwest and Centuri is based on awards to be issued in shares of Southwest Gas Holdings, Inc. On May 8, 2019, the Company filed with the SEC an automatic shelf registration statement on Form S-3 (File No. 333-231297 ), which became effective upon filing, for the offer and sale of up to $300 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 May 8, 2019 , between the Company and BNY Mellon Capital Markets, LLC (the “Equity Shelf Program”). The following table provides the activity in the Equity Shelf Program for the three-month and life-to-date periods ended December 31, 2019 : Three Months Ended Life-To-Date Ended December 31, 2019 Gross proceeds $ 24,999,876 $ 124,337,247 Less: agent commissions (249,999 ) (1,243,372 ) Net proceeds $ 24,749,877 $ 123,093,875 Number of shares sold 331,990 1,478,945 Weighted average price per share $ 75.30 $ 84.07 As of December 31, 2019 , the Company had up to $175,662,753 of common stock available for future sale under the program. Net proceeds from the sale of shares of common stock under the Equity Shelf Programs 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 twelve months ended December 31, 2019 were contributed to, and reflected in the records of, Southwest (as a capital contribution from Southwest Gas Holdings, Inc.). During the quarter ended March 31, 2019, the Company sold approximately 278,000 shares of common stock under a previously effective Equity Shelf Program at a weighted average price per share of $83.05 for net proceeds of $22,842,417 . Those issuances reflected the remaining shares available under that previous program. Aside from the equity shelf registrations, in December 2017 , the Company and Southwest jointly filed with the SEC an automatic shelf registration statement (File No. 333-222047), or a “Universal Shelf,” which became effective upon filing and includes a prospectus detailing the Company’s ability to offer and sell, from time to time in amounts at prices and on terms that will be determined at the time of such offering, any combination of common stock, preferred stock, debt securities (which may or may not be guaranteed by one or more of its directly or indirectly wholly owned subsidiaries if indicated in the relevant prospectus supplement), guarantees of debt securities issued by Southwest, depository shares, warrants to purchase common stock, preferred stock or depository shares issued by the Company or debt securities issued by the Company or Southwest, units and rights. Additionally as part of the Universal Shelf, Southwest may offer and sell, from time to time in amounts at prices and on terms that will be determined at the time of such offering, any combination of debt securities (which may or may not be guaranteed by one or more of its directly or indirectly wholly owned subsidiaries if indicated in the relevant prospectus supplement) and guarantees of debt securities issued by the Company or by one or more of its directly or indirectly wholly owned subsidiaries if indicated in the relevant prospectus supplement. During 2019 , the Company issued approximately 77,000 shares of common stock through the Restricted Stock/Unit Plan, and Management Incentive Plan. Additionally during 2019 , the Company issued 147,000 shares of common stock through the Dividend Reinvestment and Stock Purchase Plan (“DRSPP”), raising proceeds of approximately $12 million . As of December 31, 2019 , there were 4.2 million shares of common stock registered and available for issuance under the provisions of the various stock issuance plans, which does not include the amount of common stock available that is separately disclosed with respect to the Equity Shelf Program above. On September 20, 2019, in connection with the reincorporation into Delaware, the Company increased the number of authorized shares of common stock available for issuance from 60,000,000 to 120,000,000 . |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 8 - Debt Long-Term Debt Long-term debt is recognized in the Company’s and Southwest’s Consolidated Balance Sheets generally at the carrying value of the obligations outstanding. However, details surrounding the fair value and individual carrying values of instruments are discussed below or provided in the table that follows. The fair values of Southwest’s revolving credit facility (including commercial paper) and the variable-rate Industrial Development Revenue Bonds (“IDRBs”) approximate their carrying values. The fair values of the revolving credit facility and IDRBs are categorized as Level 1 based on the FASB’s fair value hierarchy, due to Southwest’s ability to access similar debt arrangements at measurement dates with comparable terms, including variable/market rates. Additionally, the borrowings by Southwest on the revolving credit facility are generally repaid quickly and the IDRBs have interest rates that reset frequently. The fair values of Southwest’s debentures (which include senior and medium-term Notes) 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 are categorized as Level 2 in the hierarchy. The Centuri secured revolving credit and term loan facility and Centuri’s other debt obligations (not actively traded) are categorized as Level 3. Because Centuri’s debt is not publicly traded, fair values for the secured revolving credit and term loan facility and its other debt obligations were based on a conventional discounted cash flow methodology and utilizing 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. Carrying amounts of long-term debt and related estimated fair values as of December 31, 2019 and 2018 are disclosed in the following table. The fair value hierarchy is described in Note 1 - Background, Organization, and Summary of Significant Accounting Policies . December 31, 2019 2018 Carrying Amount Market Value Carrying Amount Market Value (Thousands of dollars) Southwest Gas Corporation: Debentures: Notes, 4.45%, due 2020 $ 125,000 $ 126,673 $ 125,000 $ 126,213 Notes, 6.1%, due 2041 125,000 162,666 125,000 150,728 Notes, 3.875%, due 2022 250,000 258,550 250,000 254,195 Notes, 4.875%, due 2043 250,000 291,928 250,000 268,985 Notes, 3.8%, due 2046 300,000 308,307 300,000 267,030 Notes, 3.7%, due 2028 300,000 320,685 300,000 298,926 Notes, 4.15%, due 2049 300,000 330,138 — — 8% Series, due 2026 75,000 96,905 75,000 93,827 Medium-term notes, 7.78% series, due 2022 25,000 27,500 25,000 27,497 Medium-term notes, 7.92% series, due 2027 25,000 32,543 25,000 30,016 Medium-term notes, 6.76% series, due 2027 7,500 9,156 7,500 8,651 Unamortized discount and debt issuance costs (14,450 ) (11,807 ) 1,768,050 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 (1,717 ) (2,024 ) 198,283 197,976 Less: current maturities (125,000 ) — Long-term debt, less current maturities – Southwest Gas Corporation $ 1,991,333 $ 1,818,669 Centuri: Centuri term loan facility $ 244,812 252,182 $ 255,959 260,135 Unamortized debt issuance costs (1,101 ) (1,414 ) 243,711 254,545 Centuri secured revolving credit facility 60,021 60,057 — — Centuri other debt obligations 43,929 44,787 67,104 67,053 Less: current maturities (38,512 ) (33,060 ) Long-term debt, less current maturities – Centuri $ 309,149 $ 288,589 Consolidated Southwest Gas Holdings, Inc.: Southwest Gas Corporation long-term debt $ 2,116,333 $ 1,818,669 Centuri long-term debt 347,661 321,649 Less: current maturities (163,512 ) (33,060 ) Long-term debt, less current maturities – Southwest Gas Holdings, Inc. $ 2,300,482 $ 2,107,258 Southwest has a $400 million credit facility which expires 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 December 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. Southwest is also required to pay a commitment fee, of 0.10% per annum, on the unfunded portion of the commitments, which was not significant for the year ended December 31, 2019 . At December 31, 2019 , $150 million was outstanding on the long-term portion (including $50 million under the commercial paper program discussed below). The effective interest rate on the long-term portion of the credit facility was 2.57% at December 31, 2019 . Borrowings under the credit facility ranged from $44 million during the third quarter of 2019 to a high of $366 million during the second quarter of 2019 . 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. Any borrowing under the commercial paper program will be designated as long-term debt. Interest rates for the program are calculated at the then current commercial paper rate. At December 31, 2019 , and as noted above, $50 million was outstanding under the commercial paper program. In May 2019 , Southwest issued $300 million in 4.15% Senior Notes at a discount of 0.051% . The Notes will mature in June 2049. The proceeds were used to repay a portion of amounts then outstanding under its credit facility and commercial paper program. In November 2018, Centuri, in association with the acquisition of Linetec (refer to Note 17 - Business Acquisitions ), amended and restated its senior secured revolving credit and term loan facility, increasing the borrowing 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 line of 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 December 31, 2019 totaled $1.3 billion . At December 31, 2019 , $305 million in borrowings were outstanding under Centuri’s combined secured revolving credit and term loan facility . Interest rates for Centuri’s $590 million secured revolving credit and term loan facility are calculated at LIBOR, the Canadian Dealer Offered Rate (“CDOR”), or an alternate base rate or Canadian base rate, plus in each case an applicable margin that is determined based on Centuri’s consolidated leverage ratio. The applicable margin ranges from 0.875% to 2.25% for loans bearing interest with reference to LIBOR or CDOR and from 0.00% to 1.25% for loans bearing interest with reference to the alternate base rate or Canadian base rate. Centuri is also required to pay a commitment fee on the unfunded portion of the commitments based on their consolidated leverage ratio. The commitment fee ranges from 0.125% to 0.35% per annum. Borrowings under the secured revolving credit facility ranged from a low of $6 million during the first quarter of 2019 to a high of $99 million during the third quarter of 2019 . All amounts outstanding are considered long-term borrowings. The effective interest rate on the secured revolving credit and term loan facility was 3.2% at December 31, 2019 . It is currently anticipated that LIBOR may be discontinued as a benchmark or reference rate after 2021. As of December 31, 2019 , $17 million of borrowings were outstanding for the holding company under its credit facility, $294 million of Southwest’s outstanding borrowings under its credit facility (other than from its commercial paper program), and $188 million of Centuri’s outstanding borrowings under its credit facility have interest rates with reference to LIBOR and maturity dates that extend beyond 2021. The outstanding amounts reflect approximately 13% of Southwest’s total debt and 19% of total debt (including current maturities) for the Company overall. In order to mitigate the impact of the discontinuation on the Company’s financial condition and results of operations, Southwest and Centuri will continue to monitor developments with respect to alternative rates and work with lenders to determine the appropriate alternative reference rate for variable rate indebtedness. However, at this time the Company and Southwest can provide no assurances as to the impact a LIBOR discontinuation will have on their financial condition or results of operations. Any alternative rate may be less predictable or less attractive than LIBOR. The effective interest rates on Southwest’s variable-rate IDRBs are included in the table below: December 31, 2019 2018 2003 Series A 2.51 % 2.61 % 2008 Series A 2.46 % 2.52 % 2009 Series A 2.37 % 2.51 % Tax-exempt Series A 2.32 % 2.53 % In Nevada, interest fluctuations due to changing interest rates on Southwest’s 2003 Series A, 2008 Series A, and 2009 Series A variable-rate IDRBs are tracked and recovered from customers through a variable interest expense recovery mechanism. None of Southwest’s debt instruments have credit triggers or other clauses that result in default if bond ratings are lowered by rating agencies. Interest and fees on certain debt instruments are subject to adjustment depending on Southwest’s bond ratings. Certain debt instruments are subject to a leverage ratio cap and the 6.1% Notes due 2041 are also subject to a minimum net worth requirement. At December 31, 2019 , Southwest was in compliance with all of its covenants. Under the most restrictive of the financial covenants, approximately $2.4 billion in additional debt could be issued while still meeting the leverage ratio requirement. Relating to the minimum net worth requirement, as of December 31, 2019 , there is at least $1.5 billion of cushion in equity. No specific dividend restrictions exist under the collective covenants. None of the debt instruments contain material adverse change clauses. Certain Centuri debt instruments have leverage ratio caps and fixed charge ratio coverage requirements. At December 31, 2019 , Centuri was in compliance with all of its covenants . Under the most restrictive of the covenants, Centuri could issue over $184 million in additional debt and meet the leverage ratio requirement. Centuri has at least $53 million of cushion relating to the minimum fixed charge ratio coverage requirement. Centuri’s revolving credit and term loan facility is secured by underlying assets of the utility infrastructure services segment. Centuri’s covenants limit its ability to provide cash dividends to Southwest Gas Holdings, Inc., its parent. The dividend restriction is equal to a maximum of 60% of its rolling twelve-month consolidated net income. Estimated maturities of long-term debt for the next five years are: (Thousands of dollars) Southwest Centuri Total 2020 $ 125,000 $ 38,512 $ 163,512 2021 — 33,785 33,785 2022 425,000 35,783 460,783 2023 — 240,681 240,681 2024 — — — Short-Term Debt In March 2017 , Southwest Gas Holdings, Inc. entered into a credit facility with a borrowing capacity of $100 million that expires in March 2022 . The Company utilizes this facility for short-term financing needs. Interest rates for this facility are calculated at either LIBOR or the “alternate base rate,” plus in each case an applicable margin that is determined based on the Company’s senior unsecured debt rating. At December 31, 2019 , the applicable margin is 1.125% for loans bearing interest with reference to LIBOR and 0.125% for loans bearing interest with reference to the alternative base rate. The Company is also required to pay a commitment fee, of 0.15% per annum, on the unfunded portion of the commitments, which was not significant for the period ended December 31, 2019 . Borrowings under the credit facility ranged from none at various times throughout 2019 to a high of $17 million during the fourth quarter of 2019 . At December 31, 2019 , there was $17 million outstanding under this facility with a weighted average interest rate of 2.749% . There were no borrowings outstanding under this facility at December 31, 2018 . At December 31, 2019 , Southwest Holdings, Inc. was in compliance with all of its credit facility covenants. Interest and fees on the credit facility are subject to adjustment depending on its bond ratings. The credit facility is subject to a leverage ratio cap. No specific dividend restrictions exist under the collective covenants. The credit facility does not contain a material adverse change clause. As indicated above, 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 $194 million and $152 million of short-term borrowings outstanding with weighted average interest rates of 2.61% and 3.47% , at December 31, 2019 and 2018 , respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Note 9 - Share-Based Compensation At December 31, 2019 , three share-based compensation plans existed at Southwest: an omnibus incentive plan, a restricted stock/unit plan, and a management incentive plan. The table below shows total share-based plan compensation expense which was recognized in the Consolidated Statements of Income: Year Ended December 31, (Thousands of dollars) 2019 2018 2017 Share-based compensation plan expense, net of related tax benefits $ 5,154 $ 4,644 $ 6,751 Share-based compensation plan related tax benefits 1,627 1,467 4,137 Omnibus Incentive Plan The omnibus incentive plan is used to promote the long-term growth and profitability of the Company by providing directors, employees, and certain other individuals with incentives to increase stockholder value and otherwise contribute to the success of the Company. In addition, the plan enables the Company to attract, retain, and reward the best available persons for positions of responsibility. The omnibus incentive plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, and other equity-based and cash awards. Employees, directors, and consultants who provide services to the Company or any subsidiary may be eligible under this plan. For grants under the omnibus incentive plan, directors continue to immediately vest in the shares upon grant but are provided the option to defer receipt of equity compensation until they leave the Board of Directors. Performance-based incentive opportunities under the omnibus plan were granted to all officers of Southwest in the form of performance shares and will be based on, depending on the officer, consolidated earnings per share, utility net income, and utility return on equity, with an adjustment based on relative total shareholder return, in each case, measured over a three - year performance period. Southwest recorded $2.3 million , $2.1 million , and $1.2 million of estimated compensation expense associated with these shares during 2019 , 2018 , and 2017, respectively. Restricted Stock/Unit Plan Restricted stock/units under the restricted stock/unit plan were issued to attract, motivate, retain, and reward key employees of Southwest with an incentive to attain high levels of individual performance and improved financial performance. The restricted stock/units vest 40% at the end of year one and 30% at the end of years two and three and were issued annually as common stock in accordance with the percentage vested. The restricted stock/unit plan was also established to attract, motivate, and retain experienced and knowledgeable independent directors. Vesting for grants of restricted stock/units to directors occurred immediately upon grant. The issuance of common stock for directors occurred when their service on the Board ended. No new grants are made under the legacy restricted stock/unit plan as all future incentive compensation, including restricted stock, is granted under programs of the omnibus incentive plan, which subject to advance election, provides that issuance to directors may occur upon grant. With regard to management, grants of time-lapse restricted stock vested based on the same percentages indicated above under the legacy program. Grants of restricted stock during 2019 occurred under the omnibus incentive plan. Management Incentive Plan Under the management incentive plan, awards were historically granted to encourage key employees of Southwest to remain as employees and to achieve short-term and long-term performance goals. Plan participants were eligible to receive a cash bonus (i.e., short-term incentive) and shares (i.e., long-term incentive). The shares granted vested three years after grant and were then issued as common stock. No new share grants are made under the management incentive plan as all future incentive share compensation is granted under the omnibus incentive plan. There have been no shares granted under the management incentive plan since 2017 . The following table summarizes the activity of the management incentive plan shares and restricted stock/units as of December 31, 2019 (thousands of shares): Management Incentive Plan Shares Weighted- average grant date fair value Restricted Stock/ Units (1) Weighted- average grant date fair value Nonvested/unissued at December 31, 2018 65 $ 66.51 323 $ 56.16 Granted — 108 81.75 Dividends 1 7 Forfeited or expired — — (9 ) 77.80 Vested and issued (2) (37 ) 55.31 (64 ) 63.21 Nonvested/unissued at December 31, 2019 29 $ 79.16 365 $ 60.94 (1) The number of securities granted includes 57,500 performance shares, which was derived by assuming that target performance will be achieved during the relevant performance period. (2) Includes shares for retiree payouts and those converted for taxes. The weighted average grant date fair value shares in 2017 was $85.44 . The weighted average grant date fair value of restricted stock/units granted in 2018 and 2017 was $69.16 and $85.39 , respectively. As of December 31, 2019 , total compensation cost related to nonvested restricted stock/units not yet recognized is $3.6 million , which is expected to be recognized over a weighted average period of 1.7 years . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 - Commitments and Contingencies The Company and Southwest are defendants in miscellaneous legal proceedings. The Company and Southwest are also parties to various regulatory proceedings. The ultimate dispositions of these proceedings are not presently determinable; however, it is the opinion of management that no litigation or regulatory proceeding to which the Company and Southwest are currently subject to will have a material adverse impact on their financial position, results of operations, or cash flows. Southwest maintains liability insurance for various risks associated with the operation of its natural gas pipelines and facilities. In connection with these liability insurance policies, Southwest is responsible for an initial deductible or self-insured retention amount per incident, after which the insurance carriers would be responsible for amounts up to the policy limits. For the policy year August 2019 to July 2020 , these liability insurance policies require Southwest to be responsible for the first $1 million (self-insured retention) of each incident plus the first $4 million in aggregate claims above its self-insured retention in the policy year. Through an assessment process, Southwest may determine that certain costs are likely to be incurred in the future related to specific legal matters. In these circumstances and in accordance with accounting policies, Southwest will make an accrual, as necessary. Centuri maintains liability insurance for various risks associated with its operations. In connection with these liability insurance policies, Centuri is responsible for an initial deductible or self-insured retention amount per occurrence, after which the insurance carriers would be responsible for amounts up to the policy limits. For the policy year April 2019 to March 2020 , Centuri is responsible for the first $400,000 (self-insured retention) per occurrence under these liability insurance policies. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Note 11 - Pension and Other Postretirement Benefits Southwest Gas Corporation Employees’ Investment Plan An Employees’ Investment Plan (“EIP”) is offered to eligible employees of Southwest through deduction of a percentage of base compensation, subject to IRS limitations. The EIP provides for purchases of various mutual fund investments and Company common stock. One-half of amounts deferred by employees are matched, up to a maximum matching contribution of 3.5% of an employee’s annual compensation. There are no employer matching contributions for officer deferrals into the EIP. The cost of the plan was $5.7 million , $5.5 million , and $5.1 million for 2019 , 2018 , and 2017 , respectively. Deferred Compensation Plan A deferred compensation plan is offered to all officers of Southwest and a separate deferred compensation plan is offered to members of the Company’s Board of Directors. The plans provide the opportunity to defer up to 100% of annual cash compensation. One-half of amounts deferred by officers are matched, up to a maximum matching contribution of 3.5% of an officer’s annual base salary. Upon retirement, payments of compensation deferred, plus interest, are made in equal monthly installments over 10, 15, or 20 years, as elected by the participant . Directors have an additional option to receive such payments over a five -year period. Deferred compensation earns interest at a rate determined each January. The interest rate equals 150% of Moody’s Seasoned Corporate Bond Rate Index. Pension and Postretirement Plans A noncontributory qualified retirement plan with defined benefits covering substantially all Southwest employees is available in addition to a separate unfunded supplemental executive retirement plan (“SERP”), which is limited to Southwest’s officers. Postretirement benefits other than pensions (“PBOP”) are provided to qualified retirees for health care, dental, and life insurance benefits. The overfunded or underfunded positions of defined benefit postretirement plans, including pension plans, are recognized in the Consolidated Balance Sheets. Any actuarial gains and losses, prior service costs and transition assets or obligations are recognized in Accumulated other comprehensive income under Stockholders’ equity, net of tax, until they are amortized as a component of net periodic benefit cost. A regulatory asset has been established for the portion of the total amounts otherwise chargeable to Accumulated other comprehensive income that are expected to be recovered through rates in future periods. Changes in actuarial gains and losses and prior service costs pertaining to the regulatory asset will be recognized as an adjustment to the regulatory asset account as these amounts are amortized and recognized as components of net periodic pension costs each year. The qualified retirement plan invests the majority of its plan assets in common collective trusts which include a well-diversified portfolio of domestic and international equity securities and fixed income securities, which are managed by a professional investment manager appointed by Southwest. The investment manager has full discretionary authority to direct the investment of plan assets held in trust within the specific guidelines prescribed by Southwest through the plan’s investment policy statement. In 2016 , Southwest adopted a liability driven investment (“LDI”) strategy for part of the portfolio, a form of investing designed to better match the movement in pension plan assets with the impact of interest rate changes and inflation assumption changes on the pension plan liability. The implementation of the LDI strategy will be phased in over time by using a glide path. The glide path is designed to increase the allocation of the plan’s assets to fixed income securities, as the funded status of the plan increases, in order to more closely match the duration of the plan assets to that of the plan liability. Pension plan assets are held in a Master Trust. The pension plan funding policy is in compliance with the federal government’s funding requirements. Pension costs for these plans are affected by the amount and timing of cash contributions to the plans, the return on plan assets, discount rates, and by employee demographics, including age, compensation, and length of service. Changes made to the provisions of the plans may also impact current and future pension costs. Actuarial formulas are used in the determination of pension costs and are affected by actual plan experience and assumptions about future experience. Key actuarial assumptions include the expected return on plan assets, the discount rate used in determining the projected benefit obligation and pension costs, and the assumed rate of increase in employee compensation. Relatively small changes in these assumptions, particularly the discount rate, may significantly affect pension costs and plan obligations for the qualified retirement plan. In determining the discount rate, management matches the plan’s projected cash flows to a spot-rate yield curve based on highly rated corporate bonds. Changes to the discount rate from year-to-year, if any, are generally made in increments of 25 basis points . Due to an historically low interest rate environment, there was a 100 basis points decrease in the discount rate between years, as reflected below. This resulted in a deterioration in the funded status of the qualified retirement plan as of December 31, 2019. The methodology utilized to determine the discount rate was consistent with prior years. The weighted-average rate of compensation increase remained the same (consistent with management’s expectations overall). The asset return assumption (which impacts the following year’s expense) was reduced by 25 basis points . The rates are presented in the table below: December 31, 2019 2018 Discount rate 3.50 % 4.50 % Weighted-average rate of compensation increase 3.25 % 3.25 % Asset return assumption 6.75 % 7.00 % Future years’ expense level movements (up or down) will continue to be greatly influenced by long-term interest rates, asset returns, and funding levels. The following table sets forth the retirement plan, SERP, and PBOP funded statuses and amounts recognized on the Consolidated Balance Sheets and Consolidated Statements of Income. Year Ended December 31, 2019 2018 (Thousands of dollars) Qualified Retirement Plan SERP PBOP Qualified Retirement Plan SERP PBOP Change in benefit obligations: Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) $ 1,116,014 $ 40,603 $ 69,956 $ 1,203,484 $ 45,727 $ 75,322 Service cost 25,864 266 1,276 28,555 245 1,473 Interest cost 49,006 1,760 3,046 44,174 1,658 2,748 Plan amendments — — 1,878 — — — Actuarial loss (gain) 192,416 7,974 3,156 (102,919 ) (3,940 ) (6,020 ) Benefits paid (53,723 ) (3,206 ) (3,201 ) (57,280 ) (3,087 ) (3,567 ) Benefit obligation at end of year (PBO/PBO/APBO) 1,329,577 47,397 76,111 1,116,014 40,603 69,956 Change in plan assets: Market value of plan assets at beginning of year 790,614 — 47,341 871,665 — 54,608 Actual return on plan assets 186,102 — 9,757 (67,771 ) — (3,061 ) Employer contributions 52,000 3,206 — 44,000 3,087 — Benefits paid (53,723 ) (3,206 ) (4,260 ) (57,280 ) (3,087 ) (4,206 ) Market value of plan assets at end of year 974,993 — 52,838 790,614 — 47,341 Funded status at year end $ (354,584 ) $ (47,397 ) $ (23,273 ) $ (325,400 ) $ (40,603 ) $ (22,615 ) Weighted-average assumptions (benefit obligation): Discount rate 3.50 % 3.50 % 3.50 % 4.50 % 4.50 % 4.50 % Weighted-average rate of compensation increase 3.25 % 3.25 % N/A 3.25 % 3.25 % N/A Estimated funding for the plans above during calendar year 2020 is approximately $105 million , of which $102 million pertains to the retirement plan, and which includes a supplemental discretionary contribution of $50 million in January 2020. Management monitors plan assets and liabilities and may, at its discretion, increase plan funding levels above the minimum in order to achieve a desired funded status and avoid or minimize potential benefit restrictions. As a result of the impact of the historically low discount rate at December 31, 2019, Southwest, through a capital contribution from Southwest Gas Holdings, Inc., made the discretionary supplemental contribution in January 2020. This additional contribution is intended to mitigate the impacts on the funded status and the increase in 2020 pension costs through the ability to provide returns on the increased level of plan investments . The accumulated benefit obligation for the retirement plan and the SERP is presented below: December 31, (Thousands of dollars) 2019 2018 Retirement plan $ 1,219,989 $ 1,024,030 SERP 46,067 38,793 Benefits expected to be paid for pension, SERP, and PBOP over the next 10 years are as follows: (Millions of dollars) 2020 2021 2022 2023 2024 2025-2029 Pension $ 56.0 $ 58.0 $ 59.0 $ 60.0 $ 61.0 $ 331.0 SERP 3.1 3.1 3.1 3.1 3.1 14.8 PBOP 4.9 4.9 4.9 4.9 4.8 22.5 No assurance can be made that actual funding and benefits paid will match these estimates. For PBOP measurement purposes, the per capita cost of the covered health care benefits medical rate trend assumption is 6.0% , declining to 4.5% . Fixed contributions are made for health care benefits of employees who retire after 1988, but Southwest pays all covered health care costs for employees who retired prior to 1989. The medical trend rate assumption noted above applies to the benefit obligations of pre-1989 retirees only. As of January 1, 2018, the Company adopted “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The update required that an employer report the service cost component of total net periodic benefit costs in the same line item(s) as other compensation costs arising from services rendered by the employees during the period, and required that the other components of net benefit cost be presented in the income statement separately from the service cost component and outside a subtotal of income from operations (and be appropriately described). The update also allowed only the service cost component (and not the other components of periodic benefit costs) to be eligible for capitalization when applicable. The guidance was applied on a retrospective basis, as required, for the presentation of the service cost and other components of net benefit cost, and on a prospective basis for the capitalization of only the service cost component. Therefore, upon adoption of the update to Topic 715, amounts presented in the Company’s and Southwest’s Consolidated Statements of Income for the year ended 2017 were revised in financial information that presents 2017 as a comparative period, as follows: Year Ended December 31, 2017 (Thousands of dollars) Originally Reported Reclassification Revised Southwest Gas Holdings, Inc. Operations and maintenance $ 412,187 $ (19,424 ) $ 392,763 Other income (deductions) 13,394 (19,424 ) (6,030 ) Southwest Gas Corporation Operations and maintenance $ 410,745 $ (19,424 ) $ 391,321 Other income (deductions) 13,036 (19,424 ) (6,388 ) Operating income increased by the same amounts that Operations and maintenance expense decreased, as reflected in the table above; however, net income was not impacted overall by this reclassification for either the Company or Southwest. The service cost component of net periodic benefit costs included in the table below is part 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 each entity. Refer to the discussion above regarding the practical expedient elected related to amounts capitalized as part of assets prior to the adoption date. Components of net periodic benefit cost: Qualified Retirement Plan SERP PBOP (Thousands of dollars) 2019 2018 2017 2019 2018 2017 2019 2018 2017 Service cost $ 25,864 $ 28,555 $ 23,392 $ 266 $ 245 $ 309 $ 1,276 $ 1,473 $ 1,468 Interest cost 49,006 44,174 46,083 1,760 1,658 1,883 3,046 2,748 3,232 Expected return on plan assets (60,244 ) (58,755 ) (55,196 ) — — — (3,156 ) (3,718 ) (3,358 ) Amortization of prior service cost — — — — — — 1,271 1,335 1,335 Amortization of net actuarial loss 22,356 32,115 24,004 1,020 1,502 1,441 — — — Net periodic benefit cost $ 36,982 $ 46,089 $ 38,283 $ 3,046 $ 3,405 $ 3,633 $ 2,437 $ 1,838 $ 2,677 Weighted-average assumptions (net benefit cost) Discount rate 4.50 % 3.75 % 4.50 % 4.50 % 3.75 % 4.50 % 4.50 % 3.75 % 4.50 % Expected return on plan assets 7.00 % 7.00 % 7.00 % N/A N/A N/A 7.00 % 7.00 % 7.00 % Weighted-average rate of compensation increase 3.25 % 3.25 % 3.25 % 3.25 % 3.25 % 3.25 % N/A N/A N/A Other Changes in Plan Assets and Benefit Obligations Recognized in Net Periodic Benefit Cost and Other Comprehensive Income Year Ended December 31, 2019 2018 2017 (Thousands of dollars) Total Qualified Retirement Plan SERP PBOP Total Qualified Retirement Plan SERP PBOP Total Qualified Retirement Plan SERP PBOP Net actuarial loss (gain) (a) $ 71,087 $ 66,557 $ 7,975 $ (3,445 ) $ 20,426 $ 23,607 $ (3,940 ) $ 759 $ 43,027 $ 44,149 $ 3,334 $ (4,456 ) Amortization of prior service cost (b) (1,271 ) — — (1,271 ) (1,335 ) — — (1,335 ) (1,335 ) — — (1,335 ) Amortization of net actuarial loss (b) (23,376 ) (22,356 ) (1,020 ) — (33,617 ) (32,115 ) (1,502 ) — (25,445 ) (24,004 ) (1,441 ) — Prior service cost 1,878 — — 1,878 — — — — — — — — Regulatory adjustment (36,944 ) (39,782 ) — 2,838 8,233 7,657 — 576 (12,340 ) (18,131 ) — 5,791 Recognized in other comprehensive (income) loss 11,374 4,419 6,955 — (6,293 ) (851 ) (5,442 ) — 3,907 2,014 1,893 — Net periodic benefit costs recognized in net income 42,465 36,982 3,046 2,437 51,332 46,089 3,405 1,838 44,593 38,283 3,633 2,677 Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss $ 53,839 $ 41,401 $ 10,001 $ 2,437 $ 45,039 $ 45,238 $ (2,037 ) $ 1,838 $ 48,500 $ 40,297 $ 5,526 $ 2,677 The table above discloses the net gain or loss and prior service cost recognized in Other comprehensive income, separated into (a) amounts initially recognized in Other comprehensive income, and (b) amounts subsequently recognized as adjustments to Other comprehensive income as those amounts are amortized as components of net periodic benefit cost . See also Note 6 - Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") . The following table sets forth, by level within the three-level fair value hierarchy, the fair values of the assets of the qualified pension plan and the PBOP as of December 31, 2019 and 2018 . The SERP has no assets. December 31, 2019 2018 (Thousands of dollars) Qualified Retirement Plan PBOP Total Qualified Retirement Plan PBOP Total Assets at fair value: Level 1 – Quoted prices in active markets for identical financial assets Mutual funds $ — $ 29,188 $ 29,188 $ — $ 25,299 $ 25,299 Total Level 1 Assets (1) $ — $ 29,188 $ 29,188 $ — $ 25,299 $ 25,299 Level 2 – Significant other observable inputs Private commingled equity funds (2) Global $ 266,908 $ 6,338 $ 273,246 $ 215,280 $ 5,896 $ 221,176 International 117,086 2,780 119,866 94,465 2,588 97,053 U.S. equity securities 184,642 4,386 189,028 147,693 4,045 151,738 Emerging markets 62,943 1,494 64,437 50,817 1,392 52,209 Private commingled fixed income funds (3) 335,138 7,959 343,097 274,062 7,506 281,568 Pooled funds and mutual funds 5,359 689 6,048 5,198 610 5,808 Government fixed income and mortgage backed securities 181 4 185 163 5 168 Total Level 2 assets (4) $ 972,257 $ 23,650 $ 995,907 $ 787,678 $ 22,042 $ 809,720 Total Plan assets at fair value $ 972,257 $ 52,838 $ 1,025,095 $ 787,678 $ 47,341 $ 835,019 Insurance company general account contracts (5) 2,736 — 2,736 2,936 — 2,936 Total Plan assets $ 974,993 $ 52,838 $ 1,027,831 $ 790,614 $ 47,341 $ 837,955 (1) The Mutual funds category above is a balanced fund that invests in a diversified portfolio of common stocks, preferred stocks, and fixed-income securities. Under normal circumstances the balanced fund will hold no more than 75%, and no less than 25%, of its total assets in equity securities. The fund seeks regular income, conservation of principal, and an opportunity for long-term growth of principal and income. (2) The private commingled equity funds include common collective trusts that invest in a diversified portfolio of securities regularly traded on securities exchanges. These funds are shown in the above table at net asset value (“NAV”), which is the value of securities in the fund less the amount of any liabilities outstanding. Strategies employed by the funds include investment in: ▪ Global equities, including domestic equities ▪ International developed countries equities ▪ Domestic equities ▪ Emerging markets equities Shares in the private commingled equity funds may be redeemed given one business day notice. While they are private equity funds and reported at NAV, due to the short redemption notice period, the lack of redemption fees, the fact that the underlying investments are exchange-traded, and that substantial liabilities do not exist subject to the NAV calculation, these investments are viewed as indirectly observable (Level 2) in the fair value hierarchy and are therefore not excluded from the body of the fair value table as a reconciling item. The global fund provides diversified exposure to global equity markets. The fund seeks to provide long-term capital growth by investing primarily in securities listed on the major developed equity markets of the U.S., Europe, and Asia, as well as within those listed on emerging country equity markets on a tactical basis. The international fund invests in international financial markets, primarily those of developed economies in Europe and the Pacific Basin. The fund invests primarily in equity securities issued by foreign corporations, but may invest in other securities perceived as offering attractive investment return opportunities. The domestic equities securities funds include a large and medium capitalization fund and a small capitalization fund. The large and medium capitalization fund is designed to track the performance of the large and medium capitalization companies contained in the index, which represents approximately 90% of the market capitalization of the U.S. stock market. The small capitalization fund is designed to provide maximum long-term appreciation through investments that are well diversified by industry. The emerging markets fund was developed to invest in emerging market equities worldwide. The purposes of the fund’s operations, “emerging market countries,” include every country in the world except the developed markets of the U.S., Canada, Japan, Australia, New Zealand, Hong Kong, and Singapore, and most countries located in Western Europe. Fund investments are made directly in each country or, where direct investment is inefficient or prohibited, through appropriate financial instruments or participation in commingled funds. (3) The private commingled fixed income funds consist primarily of fixed income debt securities issued by the U.S. Treasury, government agencies, and fixed income debt securities issued by corporations. The fixed income fund investments may include the use of high yield, international fixed income securities and other instruments, including derivatives, to ensure prudent diversification over a broad spectrum of investments. The changes in the value of the fixed income funds are intended to offset the changes in the pension plan liabilities due to changes in the discount rate. These funds are shown in the above table at NAV. Shares in the private commingled fixed equity funds may be redeemed given one business day notice. While they are private fixed income funds and reported at NAV, due to the short redemption notice period, the lack of redemption fees, the fact that the underlying investments are exchange-traded, and that substantial liabilities do not exist subject to the NAV calculation, these investments are viewed as indirectly observable (Level 2), and are also not excluded from the body of the fair value table as a reconciling item. (4) With the exception of items (2) and (3), which are discussed in detail above, the Level 2 assets consist mainly of pooled funds and mutual funds. These funds are collective short-term funds that invest in Treasury bills and money market funds and are used as a temporary cash repository. (5) The insurance company general account contracts are annuity insurance contracts used to pay the pensions of employees who retired prior to 1989. The balance of the account disclosed in the above table is the contract value, which is the result of deposits, withdrawals, and interest credits. Centuri Defined Contribution Plans Centuri offers defined contribution plans under Section 401(k) of the Internal Revenue Code to its eligible employees, whether covered or not under collective-bargaining agreements. Eligibility requirements vary, as does timing of participation, matching, vesting, and profit-sharing features of the plans. Contributions by Centuri to these plans for the years ended December 31, 2019 , 2018 , and 2017 were $8 million , $7 million , and $6.3 million , respectively. Deferred Compensation Plan Centuri sponsors a nonqualified deferred compensation plan that is offered to a select group of management and highly-compensated employees. The plan allows participants to defer up to 80% of base salary and provides a match of 100% of contributions up to 5% of a participant’s salary. The plan also allows Centuri, at its discretion, to credit participant accounts with discretionary contributions. Participants are 100% vested in salary deferrals, contributions, and all earnings. Participant accounts include a return based on the performance of the underlying investment options selected. Payments from the plan are designated at each annual enrollment period based on specified triggering events and are payable by lump sum or on an annual installment basis. Multiemployer Pension Plans Centuri makes defined contributions to several multiemployer defined benefit pension plans under the terms of collective bargaining agreements (“CBAs”) with various unions representing certain employees. Contribution rates are generally specified in the CBAs and are made to the plans on a “pay-as-you-go” basis. Such contributions correspond to the number of union employees and the particular plans in which they participate, and vary depending upon the location, number of ongoing projects, and the need for union resources in connection with those projects. The risks of participating in these multiemployer plans are different from single-employer plans, including: (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the multiemployer plan, the unfunded obligations of the plan may become the obligation of the remaining participating employers; and (iii) if a participating employer chooses to stop participating in these multiemployer plans, the employer may be required to pay those plans an amount based on the underfunded status of the plan. The Pension Protection Act of 2006 requires special funding and operational rules for multiemployer plans in the U.S., including classification of the plans (based on multiple factors, including the funded status of the plan), the most severe of which is “critical.” Depending upon the classification, plans may be required to adopt measures to improve their funded status through a funding improvement or rehabilitation plan, which may require additional contributions from employers (in the form of a surcharge on benefit contributions) and/or modification of retiree benefits. The amount of additional funds, if any, that Centuri may be obligated to contribute to these plans in the future cannot be estimated due to the uncertainty regarding future levels of work that may require the utilization of union employees covered by these plans, as well as uncertainty as to the future contribution levels and possible surcharges on contributions that may apply to these plans at that time. Centuri contributed $41.3 million , $38.2 million , and $35.2 million collectively to the plans for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Substantially all of the contributions made by Centuri during these years were to U.S. plans that were not classified as critical, and for which no special surcharges were assessed. Only two plans were classified as critical and required special surcharges; however, the contributions overall related to these plans in all periods were insignificant. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12 - Income Taxes Southwest Gas Holdings, Inc. : The following is a summary of income before taxes and noncontrolling interest for domestic and foreign operations: Year ended December 31, (Thousands of dollars) 2019 2018 2017 U.S. $ 261,525 $ 235,120 $ 246,131 Foreign 11,145 8,216 12,899 Total income before income taxes $ 272,670 $ 243,336 $ 259,030 Income tax expense (benefit) consists of the following: Year Ended December 31, (Thousands of dollars) 2019 2018 2017 Current: Federal $ 622 $ (13,476 ) $ (1,316 ) State (1,510 ) (3,219 ) 2,965 Foreign 5,013 2,563 5,203 4,125 (14,132 ) 6,852 Deferred: Federal 45,593 67,784 58,443 State 8,212 8,901 1,837 Foreign (1,907 ) (869 ) (2,044 ) 51,898 75,816 58,236 Total income tax expense $ 56,023 $ 61,684 $ 65,088 Deferred income tax expense (benefit) consists of the following significant components: Year Ended December 31, (Thousands of dollars) 2019 2018 2017 Deferred federal and state: Property-related items $ 60,449 $ 94,899 $ 44,516 Purchased gas cost adjustments 3,834 (3,507 ) 8,500 Employee benefits 7,680 (7,334 ) (2,517 ) Regulatory adjustments (11,962 ) 2,412 14,401 All other deferred (7,857 ) (10,041 ) (5,935 ) Total deferred federal and state 52,144 76,429 58,965 Deferred ITC, net (246 ) (613 ) (729 ) Total deferred income tax expense $ 51,898 $ 75,816 $ 58,236 A reconciliation of the U.S. federal statutory rate to the consolidated effective tax rate (and the sources of these differences and the effect of each) are summarized as follows: Year Ended December 31, 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 21.0 % 35.0 % Net state taxes 2.1 2.9 1.1 Tax credits (0.3 ) (0.3 ) (0.4 ) Company-owned life insurance (1.5 ) 0.1 (1.6 ) Change in U.S. Federal Income Tax Rate — — (7.8 ) Amortization of excess deferred taxes (0.9 ) — — All other differences 0.1 1.6 (1.2 ) Consolidated effective income tax rate 20.5 % 25.3 % 25.1 % Deferred tax assets and liabilities consist of the following: December 31, (Thousands of dollars) 2019 2018 Deferred tax assets: Deferred income taxes for future amortization of ITC and excess deferred taxes $ 105,077 $ 105,791 Employee benefits 37,439 39,215 Alternative minimum tax credit 4,409 21,603 Federal net operating losses 7,467 13,125 Interest rate swap 1,432 2,235 Lease-related item 21,226 — Other 20,104 21,191 Valuation allowance (25 ) (1,132 ) 197,129 202,028 Deferred tax liabilities: Property-related items, including accelerated depreciation 732,798 678,307 Regulatory balancing accounts 9,931 6,097 Unamortized ITC 122 368 Debt-related costs 2,818 3,110 Intangibles 10,611 7,807 Lease-related item 20,386 — Other 19,447 34,276 796,113 729,965 Net noncurrent deferred tax liabilities $ 598,984 $ 527,937 Net noncurrent deferred tax liabilities above at December 31, 2019 and 2018 are reflected net of $856,000 and $1.26 million of noncurrent deferred tax assets associated with the Company’s Canadian operations, which are shown separately on the Company’s Consolidated Balance Sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, (Thousands of dollars) 2019 2018 Unrecognized tax benefits at beginning of year $ 971 $ 1,430 Gross increases – tax positions in prior period 85 — Gross decreases – tax positions in prior period — 459 Gross increases – current period tax positions — — Gross decreases – current period tax positions — — Settlements — — Lapse in statute of limitations — — Unrecognized tax benefits at end of year $ 1,056 $ 971 Southwest Gas Corporation : The following is a summary of income before taxes: Year ended December 31, (Thousands of dollars) 2019 2018 2017 Total income before income taxes $ 198,144 $ 182,833 $ 219,953 Income tax expense (benefit) consists of the following: Year Ended December 31, (Thousands of dollars) 2019 2018 2017 Current: Federal $ 4,109 $ (17,584 ) $ 318 State 250 (6,783 ) 1,420 4,359 (24,367 ) 1,738 Deferred: Federal 29,543 58,136 60,662 State 1,071 10,222 735 30,614 68,358 61,397 Total income tax expense $ 34,973 $ 43,991 $ 63,135 Deferred income tax expense (benefit) consists of the following significant components: Year Ended December 31, (Thousands of dollars) 2019 2018 2017 Deferred federal and state: Property-related items $ 34,398 $ 67,576 $ 49,129 Purchased gas cost adjustments 3,834 (3,507 ) 8,500 Employee benefits 6,493 2,156 (5,707 ) Regulatory Adjustments (11,962 ) 2,412 14,401 All other deferred (1,903 ) 334 (4,197 ) Total deferred federal and state 30,860 68,971 62,126 Deferred ITC, net (246 ) (613 ) (729 ) Total deferred income tax expense $ 30,614 $ 68,358 $ 61,397 A reconciliation of the U.S. federal statutory rate to the consolidated effective tax rate (and the sources of these differences and the effect of each) are summarized as follows: Year Ended December 31, 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 21.0 % 35.0 % Net state taxes 0.7 2.1 0.6 Tax credits (0.4 ) (0.4 ) (0.4 ) Company-owned life insurance (1.9 ) 0.3 (1.7 ) Change in U.S. Federal Income Tax Rate — — (3.6 ) Amortization of excess deferred taxes (1.2 ) — — All other differences (0.5 ) 1.1 (1.2 ) Effective income tax rate 17.7 % 24.1 % 28.7 % Deferred tax assets and liabilities consist of the following: December 31, (Thousands of dollars) 2019 2018 Deferred income taxes for future amortization of ITC and excess deferred taxes $ 105,077 $ 105,791 Employee benefits 13,574 17,337 Alternative minimum tax credit 4,409 21,603 Federal net operating losses — 4,557 Interest rate swap 1,432 2,235 Other 10,761 13,362 Valuation allowance (25 ) (37 ) 135,228 164,848 Deferred tax liabilities: Property-related items, including accelerated depreciation 644,046 614,205 Regulatory balancing accounts 9,931 6,097 Unamortized ITC 122 368 Debt-related costs 2,818 3,110 Other 17,361 31,526 674,278 655,306 Net deferred tax liabilities $ 539,050 $ 490,458 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, (Thousands of dollars) 2019 2018 Unrecognized tax benefits at beginning of year $ 971 $ 1,069 Gross increases – tax positions in prior period 85 — Gross decreases – tax positions in prior period — 98 Gross increases – current period tax positions — — Gross decreases – current period tax positions — — Settlements — — Lapse in statute of limitations — — Unrecognized tax benefits at end of year $ 1,056 $ 971 In assessing whether uncertain tax positions should be recognized in its financial statements, management first determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluations of whether a tax position has met the more-likely-than-not recognition threshold, management presumes that the position will be examined by the appropriate taxing authority that would have full knowledge of all relevant information. For tax positions that meet the more-likely-than-not recognition threshold, management measures the amount of benefit recognized in the financial statements at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Unrecognized tax benefits are recognized in the first financial reporting period in which information becomes available indicating that such benefits will more-likely-than-not be realized. For each reporting period, management applies a consistent methodology to measure unrecognized tax benefits, and all unrecognized tax benefits are reviewed periodically and adjusted as circumstances warrant. Measurement of unrecognized tax benefits is based on management’s assessment of all relevant information, including prior audit experience, the status of audits, conclusions of tax audits, lapsing of applicable statutes of limitation, identification of new issues, and any administrative guidance or developments. At December 31, 2019 , the total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $1 million individually for both the Company and Southwest. No significant increases or decreases in unrecognized tax benefit are expected within the next 12 months. The Company and Southwest recognize interest expense and income and penalties related to income tax matters in income tax expense. There was no tax-related interest income for 2019 , 2018 , and 2017 . The Company’s regulated operations accounting for income taxes is impacted by the FASB’s ASC 980 – Regulated Operations. Reductions in accumulated deferred income tax balances due to the reduction in the corporate income tax rates to 21% under the provisions of the Tax Cuts and Jobs Act (“TCJA”), enacted in December 2017, may result in a refund of excess deferred taxes to customers, generally through reductions in future rates. The TCJA included provisions that stipulate how these excess deferred taxes may be passed back to customers for certain accelerated tax depreciation benefits. Potential refunds of other deferred taxes will be determined in conjunction with appropriate regulatory commissions. Southwest began refunding excess deferred taxes to Nevada customers starting in January 2019. The December 31, 2019 Consolidated Balance Sheets of Southwest and the Company reflect the impact of the TCJA with a balance of the regulatory liability for accumulated deferred income taxes of $453 million . The Company and its subsidiaries file a consolidated federal income tax return in the U.S. and in various states, as well as separate returns in Canada. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or Canadian income tax examinations for years before 2015. The Company and each of its subsidiaries, including Southwest, participate in a tax sharing agreement to establish the method for allocating tax benefits and losses among members of the consolidated group. The consolidated federal income tax is apportioned among the subsidiaries using a separate return method. At December 31, 2019 , the Company has a federal net operating loss carryforward of $36 million which may be carried forward indefinitely . The Company also has general business credits of $6.0 million , which begin to expire in 2035 . The Company has net capital loss carryforwards of $107,000 , which will begin to expire in 2020 . At December 31, 2019 , the Company has an income tax net operating loss carryforward related to Canadian operations of $5.6 million , which begins to expire in 2034 . Management intends to continue to permanently reinvest any future foreign earnings in Canada. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 13 - Derivatives In managing its natural gas supply portfolios, Southwest has historically entered into fixed- and variable-price contracts, which qualify as derivatives. Additionally, Southwest has utilized 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. Southwest historically utilized fixed-price contracts and Swaps under its volatility mitigation programs to effectively fix the price on a portion of its natural gas supply portfolios. The maturities of the Swaps highly correlate to forecasted purchases of natural gas, with the longest maturity date of the Swaps being October 2020 . Management does not currently anticipate entering into new Swaps in the near term. Regarding existing Swap arrangements , 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 paid or received. The differential is calculated based on the notional amounts under the contracts, which are detailed in the table below: December 31, (Thousands of dekatherms) 2019 2018 Contract notional amounts 11,965 13,387 The following table presents the amounts paid to and received from counterparties for settlements of matured Swaps: Year Ended December 31, (Thousands of dollars) 2019 2018 2017 Paid to counterparties $ 10,438 $ 6,781 $ 3,100 Received from counterparties $ 1,352 $ 606 $ 1,685 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, since following settlement, amounts are reflected in Net cost of gas sold at the same time they are included in Gas operating revenues through updates to the PGA component of rates. Previously, Southwest entered into forward-starting interest rate swaps (“FSIRS”), the settled positions for which are immaterial and continue to be amortized from Accumulated other comprehensive income (loss) into interest expense. The estimated fair value of Southwest’s Swaps was determined at December 31, 2019 and 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 and have been credit-risk adjusted with no significant impact to the overall fair value measurement. The following table sets forth the fair value of the Swaps and their location in the Consolidated Balance Sheets for both the Company and Southwest. It also sets forth the location of regulatory assets or liabilities offsetting, dollar-for-dollar, the fair value of the Swaps (pursuant to Southwest’s rate-regulation). Fair values of derivatives not designated as hedging instruments: (Thousands of dollars) December 31, 2019 Swap Position Instrument Balance Sheet Location Asset Derivatives Liability Derivatives Net Total Offsetting Balance Sheet Location (Regulatory Asset/(Liability)) Swaps Other current liabilities $ 3 $ (10,954 ) $ (10,951 ) Prepaid and other current assets Total $ 3 $ (10,954 ) $ (10,951 ) December 31, 2018 Swap Position Instrument Balance Sheet Location Asset Derivatives Liability Derivatives Net Total Offsetting Balance Sheet Location (Regulatory Asset/(Liability)) Swaps Prepaid and other current assets $ 243 $ (99 ) $ 144 Other current liabilities Swaps Other current liabilities 1,595 (3,347 ) (1,752 ) Prepaid and other current assets Swaps Other deferred credits 141 (251 ) (110 ) Deferred charges and other assets Total $ 1,979 $ (3,697 ) $ (1,718 ) 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 the Consolidated Balance Sheets. No outstanding collateral associated with the Swaps existed during any period presented in the above table. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Note 14 - Segment Information The Company’s operating segments are determined based on the nature of their activities. The natural gas operations segment is engaged in the business of purchasing, distributing, and transporting natural gas. Revenues are generated from the distribution and transportation of natural gas. The utility infrastructure services segment is primarily engaged in the business of providing utility companies with trenching and installation, replacement, and maintenance services for energy distribution systems, and providing industrial construction solutions. Although our utility infrastructure services operations are geographically dispersed, they are aggregated and reported as a single segment as each reporting unit has similar economic characteristics. Over 99% of the total Company’s long-lived assets are in the U.S. The accounting policies of the reported segments are the same as those described within Note 1 - Background, Organization, and Summary of Significant Accounting Policies . Centuri accounts for the services provided to Southwest at contractual prices at contract inception. Accounts receivable for these services, which are not eliminated during consolidation, are presented in the table below: December 31, (Thousands of dollars) 2019 2018 Accounts receivable for Centuri services $ 15,235 $ 18,830 The following table presents the amount of revenues for both segments by geographic area: December 31, (Thousands of dollars) 2019 2018 2017 Revenues (a) United States $ 2,893,201 $ 2,664,670 $ 2,345,134 Canada 226,716 215,343 203,658 Total $ 3,119,917 $ 2,880,013 $ 2,548,792 (a) Revenues are attributed to countries based on the location of customers. 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 Consolidated Statements of Income, an Other column is included associated with impacts of corporate and administrative activities related to Southwest Gas Holdings, Inc. The financial information pertaining to the natural gas operations and utility infrastructure services segments for each of the three years in the period ended December 31, 2019 is as follows: Year Ended December 31, 2019 (Thousands of dollars) Natural Gas Operations Utility Infrastructure Services Other Total Revenues from external customers $ 1,368,939 $ 1,592,252 $ — $ 2,961,191 Intersegment sales — 158,726 — 158,726 Total $ 1,368,939 $ 1,750,978 $ — $ 3,119,917 Interest income $ 6,356 $ — $ — $ 6,356 Interest expense $ 95,026 $ 14,086 $ 114 $ 109,226 Depreciation and amortization $ 215,620 $ 87,617 $ — $ 303,237 Income tax expense $ 34,973 $ 21,399 $ (349 ) $ 56,023 Segment net income $ 163,171 $ 52,404 $ (1,639 ) $ 213,936 Segment assets $ 6,798,746 $ 1,365,194 $ 6,108 $ 8,170,048 Capital expenditures $ 778,748 $ 159,400 $ — $ 938,148 Year Ended December 31, 2018 (Thousands of dollars) Natural Gas Operations Utility Infrastructure Services Other Total Revenues from external customers $ 1,357,728 $ 1,386,371 $ — $ 2,744,099 Intersegment sales — 135,914 — 135,914 Total $ 1,357,728 $ 1,522,285 $ — $ 2,880,013 Interest income $ 6,020 $ 88 $ — $ 6,108 Interest expense $ 81,740 $ 14,190 $ 741 $ 96,671 Depreciation and amortization $ 191,816 $ 57,396 $ — $ 249,212 Income tax expense $ 43,991 $ 18,420 $ (727 ) $ 61,684 Segment net income $ 138,842 $ 44,977 $ (1,542 ) $ 182,277 Segment assets $ 6,141,584 $ 1,215,573 $ 572 $ 7,357,729 Capital expenditures $ 682,869 $ 83,045 $ — $ 765,914 Year Ended December 31, 2017 (Thousands of dollars) Natural Gas Operations Utility Infrastructure Services Other Total Revenues from external customers $ 1,302,308 $ 1,149,325 $ — $ 2,451,633 Intersegment sales — 97,159 — 97,159 Total $ 1,302,308 $ 1,246,484 $ — $ 2,548,792 Interest income $ 2,784 $ 3 $ — $ 2,787 Interest expense $ 69,733 $ 7,986 $ 345 $ 78,064 Depreciation and amortization $ 201,922 $ 49,029 $ — $ 250,951 Income tax expense $ 63,135 $ 2,390 $ (437 ) $ 65,088 Segment net income $ 156,818 $ 38,360 $ (1,337 ) $ 193,841 Segment assets $ 5,482,669 $ 752,496 $ 1,901 $ 6,237,066 Capital expenditures $ 560,448 $ 63,201 $ — $ 623,649 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Note 15 - Quarterly Financial Data (Unaudited) The following table presents summarized quarterly financial data for 2019 and 2018 : Quarter Ended March 31 June 30 September 30 December 31 (Thousands of dollars, except per share amounts) 2019 Southwest Gas Holdings, Inc.: Operating revenues $ 833,539 $ 713,011 $ 725,230 $ 848,137 Operating income 140,480 54,869 38,258 138,204 Net income 95,384 22,832 6,525 91,906 Net income attributable to Southwest Gas Holdings, Inc. 94,809 22,056 5,353 91,718 Basic earnings per common share (1) 1.78 0.41 0.10 1.67 Diluted earnings per common share (1) 1.77 0.41 0.10 1.67 Southwest Gas Corporation: Operating revenues $ 520,677 $ 258,711 $ 209,980 $ 379,571 Operating income (loss) 148,713 24,069 (1,807 ) 112,678 Net income (loss) 103,389 3,369 (20,012 ) 76,425 2018 Southwest Gas Holdings, Inc.: Operating revenues $ 754,330 $ 670,883 $ 668,146 $ 786,654 Operating income 129,560 53,338 39,681 134,854 Net income 78,294 21,551 12,331 69,476 Net income attributable to Southwest Gas Holdings, Inc. 79,091 21,551 12,331 69,304 Basic earnings per common share (1) 1.63 0.44 0.25 1.36 Diluted earnings per common share (1) 1.63 0.44 0.25 1.36 Southwest Gas Corporation: Operating revenues $ 494,313 $ 275,679 $ 217,523 $ 370,213 Operating income 141,173 24,675 3 115,962 Net income (loss) 90,349 2,622 (13,670 ) 59,541 (1) The sum of quarterly earnings (loss) per average common share may not equal the annual earnings (loss) per share due to the ongoing change in the weighted-average number of common shares. The demand for natural gas is seasonal, and it is the opinion of management that comparisons of earnings for interim periods do not reliably reflect overall trends and changes in operations. Also, the timing of general rate relief can have a significant impact on earnings for interim periods. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | Note 16 - 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 and at each interval discussed above. The outstanding noncontrolling interest is not subject to minimum purchase provisions and following the eligibility dates for the elections, they do not expire. The redemption price represents the greater of fair value of the ownership interest to be redeemed on the redemption date or a floor amount under the terms of the agreement. 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 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 December 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: Redeemable Noncontrolling Interest (Thousands of dollars) Balance, December 31, 2017 $ — Redeemable noncontrolling interest acquired 81,659 Net income attributable to redeemable noncontrolling interest 172 Balance, December 31, 2018 81,831 Net income attributable to redeemable noncontrolling interest 2,711 Balance, December 31, 2019 $ 84,542 |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | Note 17 - Business Acquisitions As indicated in Note 1 - Background, Organization, and Summary of Significant Accounting Policies , on November 30, 2018 , the Company, through its subsidiaries, led principally by Centuri, completed the acquisition of an 80% interest in a privately held utility infrastructure services business, Linetec, for approximately $303.4 million , with the remaining 20% retained by the seller. Of the $303.4 million ultimate purchase price, $47.6 million was paid during the year ended December 31, 2019 and $4.7 million remained unpaid as of year end. The acquisition extended the utility services operations in the southeastern region of the U.S. and provides additional opportunities for expansion of the amount of work Centuri performs for electric utilities. Funding for the acquisition was primarily provided by a portion of net proceeds from the Company’s equity offering in November 2018 and from Centuri’s $590 million secured revolving credit and term loan facility, as amended, described below and in Note 8 - Debt . Assets acquired and liabilities assumed in the transaction were recorded, generally, at their estimated acquisition date fair values. 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 business, 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. During a one-year post-acquisition measurement period, the values were adjusted by $23.2 million related to the combined effects of a mutual tax election under Internal Revenue Code Section 338(h), working capital adjustments, amounts associated with certain unbilled customer receivable balances, and other refinements, as reflected in the table below. The final 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 0.9 22.5 Prepaid expenses and other current assets 1.1 0.1 1.2 Property and equipment 89.4 (1.0 ) 88.4 Intangible assets 89.3 — 89.3 Goodwill 188.5 (21.2 ) 167.3 Total assets acquired 426.6 (21.7 ) 404.9 Accounts payable 8.0 — 8.0 Accrued liabilities 6.9 1.5 8.4 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 1.5 101.5 Net assets acquired $ 326.6 $ (23.2 ) $ 303.4 Goodwill consists of the value associated with the assembled workforce, consolidation of operations, and the estimated economic value attributable to future opportunities related to the transaction. As the business of Linetec was deemed an asset purchase for tax purposes, the $167.3 million of tax-basis goodwill is expected to be deductible for tax purposes. As of the acquisition date, other intangible assets totaled $89.3 million which are being amortized over a weighted-average life of 19 years . Of the $89.3 million of intangible assets, $79 million was attributable to customer relationships with an assigned life of 20 years , $10 million was attributable to a trade name with a 15 -year useful life, and $300,000 was attributable to customer contracts with a useful life of one year . The intangible assets other than goodwill are included in Other property and investments in the Company’s Consolidated Balance Sheets. The unaudited pro forma consolidated financial information for fiscal 2018 and fiscal 2017 (assuming the acquisition of Linetec occurred as of the beginning fiscal 2017) was as follows: Year Ended December 31, (In thousands of dollars, except per share amounts) 2018 2017 Total operating revenues $ 3,037,209 $ 2,626,721 Net income attributable to Southwest Gas Holdings, Inc. $ 187,642 $ 192,368 Basic earnings per share $ 3.80 $ 4.01 Diluted earnings per share $ 3.79 $ 4.01 Acquisition costs of $6.9 million that were incurred during 2018, and included in Utility infrastructure services expenses in the Consolidated Statements of Income, were excluded from the 2018 unaudited pro forma consolidated financial information shown above and included in the 2017 amounts. No material nonrecurring pro forma adjustments directly attributable to the business combination were included in the unaudited pro forma consolidated financial information. The pro forma financial information includes assumptions and adjustments made to incorporate various items including, but not limited to, additional interest expense and depreciation and amortization expense, and tax effects, as appropriate. The pro forma financial information has been prepared for comparative purposes only, and is not intended to be indicative of what the Company’s results would have been had the acquisition occurred at the beginning of the periods presented nor indicative of results which may occur in the future, for a number of reasons. These reasons include, but are not limited to, differences between the assumptions used to prepare the pro forma information, potential cost savings from operating efficiencies, and the impact of incremental costs incurred in integrating the business. Actual results from Linetec operations, excluding transaction costs incurred by Centuri, included in the Consolidated Statements of Income since the date of acquisition are as follows: Year Ended December 31, (Thousands of dollars) 2019 2018 Utility infrastructure services revenues $ 236,099 $ 14,119 Net income attributable to Southwest Gas Holdings, Inc. 10,844 690 |
Background, Organization and _2
Background, Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations. This is a combined annual report of Southwest Gas Holdings, Inc. and its subsidiaries (the “Company”) and Southwest Gas Corporation and its subsidiaries (“Southwest” or the “natural gas operations” segment). The notes to the consolidated financial statements apply to both entities. Southwest Gas Holdings, Inc. is a holding company, owning all of the shares of common stock of Southwest and all of the shares of common stock of Centuri Group, Inc. (“Centuri” or the “utility infrastructure services” segment). At the annual meeting of stockholders of Southwest Gas Holdings, Inc., held on May 2, 2019, stockholders voted to approve changing the state of incorporation for Southwest Gas Holdings, Inc. from California to Delaware. The reincorporation became effective in September 2019. 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 2018, Centuri acquired an 80% |
Basis of Presentation | Basis of Presentation. The Company follows accounting principles generally accepted in the United States (“U.S. GAAP”) in accounting for all of its businesses. Unless specified otherwise, all amounts are in U.S. dollars. Accounting for natural gas utility operations conforms with U.S. GAAP as applied to rate-regulated companies and as prescribed by federal agencies and commissions of the various states in which the utility operates. The preparation of financial statements in conformity with U.S. GAAP 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. 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 acquisition of Linetec. |
Consolidation | Consolidation. The accompanying financial statements are presented on a consolidated basis for Southwest Gas Holdings, Inc. and all subsidiaries and Southwest Gas Corporation and all subsidiaries as of December 31, 2019 (except those accounted for using the equity method as discussed below). All significant intercompany balances and transactions have been eliminated with the exception of transactions between Southwest and Centuri in accordance with accounting treatment for rate-regulated entities. Centuri, through its subsidiaries, holds a 50% interest in W.S. Nicholls Western Construction Ltd. (“Western”), a Canadian infrastructure services company that is a variable interest entity. Centuri determined that it is not the primary beneficiary of the entity due to a shared-power structure; therefore, Centuri does not consolidate the entity and has recorded its investment, and results related thereto, using the equity method. The investment in Western, related earnings, and dividends received from Western in 2019 and 2018 were not significant. Centuri’s maximum exposure to loss as a result of its involvement with Western was estimated at $12.2 million as of December 31, 2019 . |
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. 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 the PBOP required to be recorded and/or disclosed at fair value. The Company uses prices and inputs that are current as of the measurement date, and recognizes transfers between levels at either the actual date of an event or a change in circumstance that caused the transfer. |
Net Utility Plant | Net Utility Plant. Net utility plant includes gas plant at original cost, less the accumulated provision for depreciation and amortization, plus the unamortized balance of acquisition adjustments. Original cost generally includes contracted services, material, payroll, and related costs such as taxes and certain benefits, general and administrative expenses, and an allowance for funds used during construction, less contributions in aid of construction. |
Intangible Assets | Intangible Assets |
Cash and Cash Equivalents | Cash and Cash Equivalents. For purposes of reporting consolidated cash flows, cash and cash equivalents includes cash on hand and financial instruments with original 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 $23.5 million and $26.7 million , respectively at December 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 year end that are included in accounts payable. Amounts related to such activities were not significant for the periods presented herein. Also, see Note 2 - Utility Plant and Leases for information related to right-of-use assets obtained in exchange for lease liabilities, which are non-cash investing and financing activities. Right-of-use assets and lease liabilities are also subject to non-cash impacts as a result of other factors, such as lease terminations and modifications. |
Income Taxes | Income Taxes. The asset and liability method of accounting is utilized for the recognition of income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. For regulatory and financial reporting purposes, investment tax credits (“ITC”) related to gas utility operations are deferred and amortized over the life of related fixed assets. As of December 31, 2019 , the Company had cumulative book earnings of approximately $32 million in its foreign jurisdiction. Management previously asserted and continues to assert that all the earnings of Centuri’s Canadian subsidiaries will be permanently reinvested in Canada. As a result, no U.S. deferred income taxes have been recorded related to cumulative foreign earnings. The Financial Accounting Standards Board (the “FASB”) issued guidance to allow an accounting policy election of either (i) treating taxes attributable to future taxable income related to G lobal Intangible Low-Taxed Income (“GILTI”) as a current period expense when incurred or (ii) recognizing deferred taxes for temporary differences expected to reverse as GILTI in future years. The Company has elected to treat GILTI as a current period cost when incurred and has considered the estimated 2019 GILTI impact in its 2019 tax expense, which was immaterial. |
Deferred Purchased Gas Costs | Deferred Purchased Gas Costs. The various regulatory commissions have established procedures to enable Southwest to adjust its billing rates for changes in the cost of natural gas purchased. The difference between the current cost of gas purchased and the cost of gas recovered in billed rates is deferred. Generally, these deferred amounts are recovered or refunded within one year. |
Prepaids and Other Current Assets | Prepaid and other current assets . Prepaid and other current assets for Southwest and the Company include gas pipe materials and operating supplies of $57 million in 2019 and $56 million in 2018 (carried at weighted average cost), and also include $33 million in 2019 and $74 million in 2018 related to a regulatory asset associated with the Arizona decoupling mechanism (an alternative revenue program). |
Goodwill | Goodwill. |
Other Current Liabilities | Other Current Liabilities. Management recognizes in its balance sheets various liabilities that are expected to be settled through future cash payment within the next twelve months, including certain regulatory liabilities (refer to Note 5 - Regulatory Assets and Liabilities ), customary accrued expenses for employee compensation and benefits, and declared but unpaid dividends. Amounts included in the Consolidated Balance Sheet of the Company as of December 31, 2018 reflect $75.6 million in unremitted amounts associated with the Linetec acquisition noted above. |
Accumulated Removal Costs | Accumulated Removal Costs. Approved regulatory practices allow Southwest to include in depreciation expense a component intended to recover removal costs associated with utility plant retirements. In accordance with the Securities and Exchange Commission (“SEC”) position on presentation of these amounts, management reclassifies estimated removal costs from accumulated depreciation to accumulated removal costs within the liabilities section of the Consolidated Balance Sheets. Management regularly updates the estimated accumulated removal costs as amounts fluctuate between periods depending on the level of replacement work performed, the estimated cost of removal in rates, and the actual cost of removal experienced. |
Revenue Recognition | Gas Operating Revenues. Southwest recognizes revenue when it satisfies its performance by transferring gas to the customer. Natural gas is delivered and “consumed” by the customer simultaneously. Revenues are recorded when customers are billed. Customer billings are substantially based on monthly meter reads and include certain other charges assessed monthly, and are calculated in accordance with applicable tariffs and state and local laws, regulations, and related agreements. An estimate of the margin associated with natural gas service provided, but not yet billed, to residential and commercial customers from the latest meter read date to the end of the reporting period is also recognized as accrued utility revenue. Revenues also include the net impacts of margin tracker/decoupling accruals based on criteria in U.S. GAAP for rate-regulated entities associated with alternative revenue programs. All of Southwest’s service territories have decoupled rate structures, which are designed to eliminate the direct link between volumetric sales and revenue, thereby mitigating the impacts of unusual weather variability and conservation on margin. See Note 3 - Revenue . Utility Infrastructure Services Revenues. The majority of Centuri contracts are performed under unit-price contracts. Generally, these contracts state prices per unit of installation. Typical installations are accomplished in a few weeks or less. Revenues are recorded as installations are completed. Revenues are recorded for long-term fixed-price contracts in a pattern that reflects the transfer of control of promised goods and services to the customer over time. The amount of revenue recognized on fixed-price contracts is based on costs expended to date relative to anticipated final contract costs. Changes in job performance, job conditions, and final contract settlements are factors that influence management’s assessment of total contract value and the total estimated costs to complete those contracts. Revisions in estimates of costs and earnings during the course of work are reflected in the accounting period in which the facts requiring revision become known. If a loss on a contract becomes known or is anticipated, the entire amount of the estimated ultimate loss is recognized at that time in the financial statements. Some unit-price contracts contain caps that if encroached, trigger revenue and loss recognition similar to a fixed-price contract model. See Note 3 - Revenue . Utility Infrastructure Services Expenses. Centuri’s utility infrastructure services expenses in the Consolidated Statements of Income includes payroll expenses, office and equipment rental costs, subcontractor expenses, training, job-related materials, gains and losses on equipment sales, and professional fees. Net Cost of Gas Sold. Components of net cost of gas sold include natural gas commodity costs (fixed-price and variable-rate), pipeline capacity/transportation costs, and actual settled costs of natural gas derivative instruments. Also included are the net impacts of purchased gas adjustment (“PGA”) deferrals and recoveries, which by their inclusion, result in net cost of gas sold overall that is comparable to amounts included in billed gas operating revenues. Differences between amounts incurred with suppliers, transmission pipelines, etc. and those already included in customer rates, are temporarily deferred in PGA accounts pending inclusion in customer rates. |
Operations and Maintenance Expense | Operations and Maintenance Expense. Operations and maintenance expense includes Southwest’s operating and maintenance costs associated with serving utility customers and maintaining its distribution and transmission systems, uncollectible expense, administrative and general salaries and expense, employee benefits expense excluding relevant non-service cost components (see Note 11 - Pension and Other Postretirement Benefits ), and legal expense (including injuries and damages). |
Depreciation and Amortization | Depreciation and Amortization. Utility plant depreciation is computed on the straight-line remaining life method at composite rates considered sufficient to amortize costs over estimated service lives, including components which compensate for removal costs (net of salvage value), and retirements, as approved by the appropriate regulatory agency. When plant is retired from service, the original cost of plant, including cost of removal, less salvage, is charged to the accumulated provision for depreciation. See also discussion regarding Accumulated Removal Costs |
Allowance for Funds Used During Construction ("AFUDC") | Allowance for Funds Used During Construction (“AFUDC”). AFUDC represents the cost of both debt and equity funds used to finance utility construction. AFUDC is capitalized as part of the cost of utility plant. The debt portion of AFUDC is reported in the Company’s and Southwest’s Consolidated Statements of Income as an offset to Net interest deductions and the equity portion is reported as Other income. Utility plant construction costs, including AFUDC, are recovered in authorized rates through depreciation when completed projects are placed into operation, and general rate relief is requested and granted. |
Foreign Currency Translation | Foreign Currency Translation. Foreign currency-denominated assets and liabilities of consolidated subsidiaries are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of accumulated other comprehensive income within stockholders’ equity. Results of operations of foreign subsidiaries are translated using the monthly weighted-average exchange rates during the respective periods. Gains and losses resulting from foreign currency transactions are included in Other income (expense) of the Company. Gains and losses resulting from intercompany foreign currency transactions that are of a long-term investment nature are reported in Other comprehensive income, if applicable. |
Earnings Per Share | Earnings Per Share. |
Recently 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 2 - Utility Plant and Leases . Recently issued accounting pronouncements that will be effective in 2020 : In June 2016, the FASB issued ASU 2016-13 “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 utilized, however they may be adapted to reflect the full amount of expected losses, should there be a difference. The update is effective for fiscal years beginning after December 15, 2019 , including interim periods within those fiscal years. The Company and Southwest have completed their evaluation of this standard and will adopt the update as required. Management does not expect the impact to be material to the Company’s or Southwest’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04 “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Under the update, an entity will apply a one-step quantitative test as opposed to a two-step test as currently required 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 of goodwill impairment. The amendments should be applied on a prospective basis and is effective for fiscal and interim periods beginning after December 15, 2019 . The Company and Southwest will apply the update prospectively at the date of adoption during the first quarter of 2020. The amount of any future goodwill impairment calculated under the update could vary from the calculation under the existing guidance. 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, with the exception that the FASB intends for implementation costs associated with hosted arrangements that are service contracts to be included in the same line item in the balance sheet that a prepayment of the fees associated with the arrangement would be presented. Once capitalized, the update also requires the entity to expense the amount capitalized 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. The Company and Southwest will apply the update prospectively at the date of adoption during the first quarter of 2020, and management does not expect the amendment to have a material impact on the Company’s or Southwest’s consolidated financial statements. Recently issued accounting pronouncements that will be effective after 2020 : 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. Early adoption is permitted. Management is evaluating the impacts this update might have on its disclosures. In August 2018, the FASB issued ASU 2018-13 “Fair Value Measurement: Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” The update modifies the disclosure requirements on fair value measurements in Topic 820. The update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Upon adoption, the Company and Southwest will modify their disclosures to conform to the requirements of the update, as applicable. In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The update simplifies the accounting for income taxes by removing certain exceptions to the general principles, as well as improving consistent application in Topic 740 by clarifying and amending existing guidance. The update is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted for periods for which financial statements have not yet been made available for issuance. Management is evaluating the impacts this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures. |
Subsequent Events | Subsequent Events. Management monitors events occurring after the balance sheet date and prior to the issuance of the financial statements to determine the impacts, if any, of events on the financial statements to be issued or disclosures to be made, and has reflected them where appropriate. |
Background, Organization and _3
Background, Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Property and Investments | Other property and investments on Southwest’s and the Company’s Consolidated Balance Sheets includes: December 31, (Thousands of dollars) 2019 2018 Southwest Gas Corporation: Net cash surrender value of COLI policies $ 132,072 $ 114,405 Other property 1,715 1,741 Total Southwest Gas Corporation 133,787 116,146 Centuri property, equipment, and intangibles 983,905 792,191 Centuri accumulated provision for depreciation and amortization (352,333 ) (298,939 ) Other property 18,814 14,153 Total Southwest Gas Holdings, Inc. $ 784,173 $ 623,551 |
Summary of Intangible Assets | These intangible assets are included in Other property and investments on the Company’s Consolidated Balance Sheets. Centuri’s intangible assets, not including goodwill, at December 31, 2019 and 2018 , respectively, were as follows: December 31, 2019 (Thousands of dollars) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 154,186 $ (20,735 ) $ 133,451 Trade names and trademarks 23,353 (6,754 ) 16,599 Customer contracts backlog 270 (252 ) 18 Noncompete agreements 2,045 (1,602 ) 443 Total $ 179,854 $ (29,343 ) $ 150,511 December 31, 2018 Customer relationships $ 152,533 $ (11,716 ) $ 140,817 Trade names and trademarks 23,013 (5,234 ) 17,779 Customer contracts backlog 270 (3 ) 267 Noncompete agreements 2,022 (1,064 ) 958 Total $ 177,838 $ (18,017 ) $ 159,821 |
Schedule of Estimated Future Amortization of Intangible Assets | The estimated future amortization of the intangible assets for the next five years and thereafter is as follows: (Thousands of dollars) 2020 $ 10,722 2021 10,303 2022 10,215 2023 10,215 2024 10,215 Thereafter 98,841 Total $ 150,511 |
Schedule of Goodwill | Goodwill on the Company’s Consolidated Balance Sheet includes : (Thousands of dollars) Natural Gas Operations Utility Infrastructure Services Total Company Balance, December 31, 2017 $ 10,095 $ 169,219 $ 179,314 Measurement-period adjustments - Neuco acquisition — 182 182 Goodwill from Linetec acquisition — 188,494 188,494 Foreign currency translation adjustment — (8,945 ) (8,945 ) Balance, December 31, 2018 10,095 348,950 359,045 Measurement-period adjustments - Linetec acquisition — (21,172 ) (21,172 ) Foreign currency translation adjustment — 5,150 5,150 Balance, December 31, 2019 $ 10,095 $ 332,928 $ 343,023 |
Schedule of Capitalized and Debt Portion of AFUDC | Utility plant construction costs, including AFUDC, are recovered in authorized rates through depreciation when completed projects are placed into operation, and general rate relief is requested and granted. (Thousands of dollars) 2019 2018 2017 AFUDC: Debt portion $ 4,558 $ 3,264 $ 1,666 Equity portion 4,161 3,627 2,296 AFUDC capitalized as part of utility plant $ 8,719 $ 6,891 $ 3,962 AFUDC rate 5.36 % 5.85 % 5.95 % |
Schedule of Other Income (Deductions) | The following table provides the composition of significant items included in Other income (deductions) on the Consolidated Statements of Income: (Thousands of dollars) 2019 2018 2017 Southwest Gas Corporation – natural gas operations segment: Change in COLI policies $ 17,400 $ (3,200 ) $ 10,300 Interest income 6,356 6,020 2,784 Equity AFUDC 4,161 3,627 2,296 Other components of net periodic benefit cost (15,059 ) (21,059 ) (19,424 ) Miscellaneous income and (expense) (3,341 ) (2,628 ) (2,344 ) Southwest Gas Corporation – total other income (deductions) 9,517 (17,240 ) (6,388 ) Utility infrastructure services segment: Interest income — 88 3 Foreign transaction gain (loss) 546 (222 ) (754 ) Equity in earnings of unconsolidated investment – Western 439 531 1,052 Miscellaneous income and (expense) (519 ) (635 ) 44 Centuri – total other income (deductions) 466 (238 ) 345 Corporate and administrative 102 52 13 Consolidated Southwest Gas Holdings, Inc. - total other income (deductions) $ 10,085 $ (17,426 ) $ (6,030 ) |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the denominator used in the Basic and Diluted EPS calculations is shown in the following table: (In thousands) 2019 2018 2017 Average basic shares 54,245 49,419 47,965 Effect of dilutive securities: Management Incentive Plan shares 12 25 8 Restricted stock units (1) 55 32 18 Average diluted shares 54,312 49,476 47,991 (1) The number of securities granted for 2019 , 2018 , and 2017 includes 46,000 , 23,000 , and 7,000 performance shares, respectively, the total of which was derived by assuming that target performance will be achieved during the relevant performance period. |
Utility Plant and Leases (Table
Utility Plant and Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulated Operations [Abstract] | |
Schedule of Net Utility Plant | Net utility plant as of December 31, 2019 and 2018 was as follows: December 31, (Thousands of dollars) 2019 2018 Gas plant: Storage $ 100,908 $ 26,825 Transmission 391,864 386,159 Distribution 6,581,043 6,049,380 General 467,274 416,643 Software and software-related intangibles 256,299 241,158 Other 15,833 14,074 7,813,221 7,134,239 Less: accumulated depreciation and amortization (2,313,050 ) (2,234,029 ) Construction work in progress 185,026 193,028 Net utility plant $ 5,685,197 $ 5,093,238 |
Schedule of Depreciation and Amortization Expense | Depreciation and amortization expense on gas plant, including intangibles, was as follows: (Thousands of dollars) 2019 2018 2017 Depreciation and amortization expense $ 197,358 $ 185,719 $ 187,075 |
Components of Lease Expense, and Supplemental Cash Flow Information Related to Leases | The components of lease expense were as follows: (Thousands of dollars) Year Ended December 31, 2019 Southwest: Operating lease cost $ 1,531 Centuri: Operating lease cost $ 12,235 Finance lease cost: Amortization of ROU assets $ 137 Interest on lease liabilities 34 Total finance lease cost 171 Short-term lease cost 16,217 Total lease cost - Southwest Gas Holdings, Inc. $ 30,154 Supplemental cash flow information related to leases for the year ended December 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 $ 1,278 $ 11,166 $ 12,444 Operating cash flows from finance leases — 33 33 Financing cash flows from finance leases — 212 212 ROU assets obtained in exchange for lease obligations: Operating leases $ 862 $ 23,825 $ 24,687 Finance leases — 13,839 13,839 |
Supplemental Information Related to Leases Included in Balance Sheet | Supplemental information related to leases, including location in the Consolidated Balance Sheets, is as follows: (Thousands of dollars) December 31, 2019 Southwest: Operating leases: Net utility plant $ 1,443 Other current liabilities $ 723 Other deferred credits and other long-term liabilities 730 Total operating lease liabilities $ 1,453 Weighted average remaining lease term (in years) 2.88 Weighted average discount rate 3.18 % Centuri: Operating leases: Other property and investments $ 78,954 Other current liabilities 8,851 Other deferred credits and other long-term liabilities 73,323 Total operating lease liabilities $ 82,174 Finance leases: Other property and investments $ 14,264 Other current liabilities $ 13,769 Other deferred credits and other long-term liabilities 355 Total finance lease liabilities $ 14,124 Weighted average remaining lease term (in years) Operating leases 10.25 Finance leases 2.13 Weighted average discount rate Operating leases 4.03 % Finance leases 6.10 % |
Schedule of Maturities of Operating Lease Liabilities | The following are schedules of maturities of lease liabilities as of December 31, 2019 : (Thousands of dollars) Operating Leases Southwest: 2020 $ 756 2021 376 2022 188 2023 78 2024 56 Thereafter 74 Total lease payments 1,528 Less imputed interest 75 Total $ 1,453 (Thousands of dollars) Operating Leases Finance Leases Centuri: 2020 $ 12,225 $ 13,799 2021 11,235 143 2022 10,613 154 2023 8,823 87 2024 8,065 1 Thereafter 49,862 — Total lease payments 100,823 14,184 Less imputed interest 18,649 60 Total $ 82,174 $ 14,124 |
Schedule of Maturities of Finance Lease Liabilities | The following are schedules of maturities of lease liabilities as of December 31, 2019 : (Thousands of dollars) Operating Leases Southwest: 2020 $ 756 2021 376 2022 188 2023 78 2024 56 Thereafter 74 Total lease payments 1,528 Less imputed interest 75 Total $ 1,453 (Thousands of dollars) Operating Leases Finance Leases Centuri: 2020 $ 12,225 $ 13,799 2021 11,235 143 2022 10,613 154 2023 8,823 87 2024 8,065 1 Thereafter 49,862 — Total lease payments 100,823 14,184 Less imputed interest 18,649 60 Total $ 82,174 $ 14,124 |
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: (Thousands of dollars) 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 |
Schedule of Future Minimum Lease 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 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue Disaggregated by Service Type and Contract Type | The following tables display Centuri’s revenue from contracts with customers disaggregated by service type and contract type: December 31, (Thousands of dollars) 2019 2018 2017 Service Types: Gas infrastructure services $ 1,238,974 $ 1,123,682 $ 891,139 Electric power infrastructure services 247,717 32,629 18,114 Other 264,287 365,974 337,231 Total Utility infrastructure services revenues $ 1,750,978 $ 1,522,285 $ 1,246,484 December 31, (Thousands of dollars) 2019 2018 2017 Contract Types: Master services agreement $ 1,383,377 $ 1,102,412 $ 885,513 Bid contract 367,601 419,873 360,971 Total Utility infrastructure services revenues $ 1,750,978 $ 1,522,285 $ 1,246,484 Unit price contracts $ 1,380,256 $ 1,258,419 $ 968,856 Fixed price contracts 112,924 117,298 127,497 Time and materials contracts 257,798 146,568 150,131 Total Utility infrastructure services revenues $ 1,750,978 $ 1,522,285 $ 1,246,484 Gas operating revenues on the 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: December 31, (Thousands of dollars) 2019 2018 2017 Residential $ 972,788 $ 887,220 $ 857,204 Small commercial 249,117 255,083 243,513 Large commercial 48,935 53,192 52,379 Industrial/other 22,074 23,489 22,026 Transportation 92,380 86,990 87,759 Revenue from contracts with customers 1,385,294 1,305,974 1,262,881 Alternative revenue program revenues (deferrals) (25,112 ) 45,979 35,347 Other revenues (a) 8,757 5,775 4,080 Total Gas operating revenues $ 1,368,939 $ 1,357,728 $ 1,302,308 (a) Comprised of various other revenue impacts, including $(4.9) million for 2019 and $(13.5) million for 2018 related to tax reform savings reserves/adjustments. |
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 assets), both of which are included within Accounts receivable, net of allowances, and provides information about amounts billed in excess of revenue earned on contracts (contract liabilities), which are included in Other current liabilities as of December 31, 2019 and 2018 on the Company’s Consolidated Balance Sheets: December 31, (Thousands of dollars) 2019 2018 Contracts receivable, net $ 223,904 $ 186,249 Revenue earned on contracts in progress in excess of billings 99,399 87,520 Amounts billed in excess of revenue earned on contracts 4,525 4,211 |
Schedule of Construction Services Contracts Receivable | services contracts receivable consists of the following: December 31, (Thousands of dollars) 2019 2018 Billed on completed contracts and contracts in progress $ 216,268 $ 184,100 Other receivables 8,456 2,588 Contracts receivable, gross 224,724 186,688 Allowance for doubtful accounts (820 ) (439 ) Contracts receivable, net $ 223,904 $ 186,249 |
Receivables and Related Allow_2
Receivables and Related Allowances (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | The table below contains information about the gas utility customer accounts receivable balance (net of allowance) at December 31, 2019 and 2018 , and the percentage of customers in each of the three states, which was consistent with the prior year. December 31, (Thousands of dollars) 2019 2018 Gas utility customer accounts receivable balance $ 148,173 $ 138,149 |
Schedule of Percent of Customers by State | The following table represents customers by state at December 31, 2019 : Percent of customers by state: Arizona 53 % Nevada 37 % California 10 % |
Schedule of Allowance for Uncollectibles | Activity in the allowance account for uncollectibles is summarized as follows: (Thousands of dollars) Allowance for Uncollectibles Balance, December 31, 2016 $ 2,524 Additions charged to expense 2,310 Accounts written off, less recoveries (2,723 ) Balance, December 31, 2017 2,111 Additions charged to expense 2,959 Accounts written off, less recoveries (2,902 ) Balance, December 31, 2018 2,168 Additions charged to expense 3,507 Accounts written off, less recoveries (3,580 ) Balance, December 31, 2019 $ 2,095 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | The following table represents existing regulatory assets and liabilities: December 31, (Thousands of dollars) 2019 2018 Regulatory assets: Accrued pension and other postretirement benefit costs (1) $ 420,114 $ 383,170 Unrealized net loss on non-trading derivatives (Swaps) (2) 10,951 1,862 Deferred purchased gas costs (3) 44,412 4,928 Accrued purchased gas costs (4) 8,000 29,000 Unamortized premium on reacquired debt (5) 18,249 19,599 Accrued absence time (8) 14,519 14,126 Margin, interest- and property tax-tracking (9) 33,380 88,290 Other (10) 33,134 32,616 582,759 573,591 Regulatory liabilities: Deferred purchased gas costs (3) (60,755 ) (79,762 ) Accumulated removal costs (395,000 ) (383,000 ) Unrealized net gain on non-trading derivatives (Swaps) (2) — (144 ) Unamortized gain on reacquired debt (6) (8,181 ) (8,717 ) Regulatory excess deferred taxes and gross-up (7) (455,625 ) (458,834 ) Margin, interest- and property tax-tracking (9) (22,650 ) (7,273 ) Other (10) (4,438 ) (12,638 ) Net regulatory liabilities $ (363,890 ) $ (376,777 ) (1) Included in Deferred charges and other assets on the Consolidated Balance Sheets. Recovery period is greater than five years. (See Note 11 - Pension and Other Postretirement Benefits ). (2) Asset balance is included in Deferred charges and other assets and Prepaid and other assets on the Consolidated Balance Sheets. Liability balance is included in Other current liabilities and Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. The actual amounts, when realized at settlement, become a component of purchased gas costs under Southwest’s PGA mechanisms. (For specific details, see Note 13 - Derivatives ). (3) Balance recovered or refunded on an ongoing basis with interest. (4) Included in Prepaid and other current assets on the Consolidated Balance Sheets. Balance recovered or refunded on an ongoing basis. (5) Included in Deferred charges and other assets on the Consolidated Balance Sheets. Recovered over life of debt instruments. (6) Included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. Amortized over life of debt instruments. (7) U.S. tax reform enacted in December 2017 required a remeasurement and reduction of the net accumulated deferred income tax liability. The reduction (excess accumulated deferred taxes) became a regulatory liability with appropriate tax gross-up. The excess deferred taxes reduce rate base. The tax benefit will be returned to utility customers in accordance with IRS and regulatory requirements. Included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets, except for $3 million which is in Other current liabilities. This amount also includes a $2.7 million gross-up related to contributions in aid of construction. (8) Regulatory recovery occurs on a one-year lag basis through the labor loading process. Included in Prepaid and other current assets on the Consolidated Balance Sheets. (9) Margin tracking/decoupling mechanisms are alternative revenue programs and revenue associated with under-collections (for the difference between authorized margin levels and amounts billed to customers through rates currently) are recognized as revenue so long as recovery is expected to take place within 24 months. Total category asset balances are included in Prepaid and other current assets on the Consolidated Balance Sheets. Total category liability balances are included in Other current liabilities and Other deferred credits and other long-term liabilities. (10) Th e following tables detail the components of Other regulatory assets and liabilities. Other regulatory assets are included in either Prepaid and other current assets or Deferred charges and other assets on the Consolidated Balance Sheets (as indicated). Recovery periods vary. Other regulatory liabilities are included in either Other current liabilities or Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets (as indicated). December 31, (Thousands of dollars) 2019 2018 Other Regulatory Assets: State mandated public purpose programs (including low income and conservation programs) (a) (e) $ 9,172 $ 6,253 Infrastructure replacement programs and similar (b) (e) 8,236 12,486 Environmental compliance programs (c) (e) 5,768 5,046 Other (d) 9,958 8,831 $ 33,134 $ 32,616 a) Included in Prepaid and other current assets on the Consolidated Balance Sheets. b) Included in Deferred charges and other assets on the Consolidated Balance Sheets. c) In 2019 , approximately $5.0 million included in Prepaid and other current assets and $782,000 included in Deferred charges and other assets on the Consolidated Balance Sheets. In 2018 , approximately $4.5 million included in Prepaid and other current assets and $596,000 included in Deferred charges and other assets on the Consolidated Balance Sheets. d) In 2019 , $1.6 million included in Prepaid and other current assets and $8.3 million included in Deferred charges and other assets on the Consolidated Balance Sheets. In 2018 , $197,000 included in Prepaid and other current assets and $8.6 million included in Deferred charges and other assets on the Consolidated Balance Sheets. e) Balance recovered or refunded on an ongoing basis, generally with interest. December 31, (Thousands of dollars) 2019 2018 Other Regulatory Liabilities: State mandated public purpose programs (including low income and conservation programs) (a) (d) $ (308 ) $ (8,598 ) Environmental compliance programs (d) (e) (527 ) — Regulatory accounts for differences related to pension funding (b) (2,476 ) (3,221 ) Other (c) (d) (1,127 ) (819 ) $ (4,438 ) $ (12,638 ) a) Included in Other current liabilities on the Consolidated Balance Sheets. b) Included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. c) In 2019 , $(1.1) million included in Other current liabilities and $(9,000) included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. In 2018 , approximately $(810,000) included in Other current liabilities and $(9,000) included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. d) Balance recovered or refunded on an ongoing basis, generally with interest. e) In 2019 , included in Other current liabilities on the Consolidated Balance Sheet. |
Schedule of Regulatory Liabilities | The following table represents existing regulatory assets and liabilities: December 31, (Thousands of dollars) 2019 2018 Regulatory assets: Accrued pension and other postretirement benefit costs (1) $ 420,114 $ 383,170 Unrealized net loss on non-trading derivatives (Swaps) (2) 10,951 1,862 Deferred purchased gas costs (3) 44,412 4,928 Accrued purchased gas costs (4) 8,000 29,000 Unamortized premium on reacquired debt (5) 18,249 19,599 Accrued absence time (8) 14,519 14,126 Margin, interest- and property tax-tracking (9) 33,380 88,290 Other (10) 33,134 32,616 582,759 573,591 Regulatory liabilities: Deferred purchased gas costs (3) (60,755 ) (79,762 ) Accumulated removal costs (395,000 ) (383,000 ) Unrealized net gain on non-trading derivatives (Swaps) (2) — (144 ) Unamortized gain on reacquired debt (6) (8,181 ) (8,717 ) Regulatory excess deferred taxes and gross-up (7) (455,625 ) (458,834 ) Margin, interest- and property tax-tracking (9) (22,650 ) (7,273 ) Other (10) (4,438 ) (12,638 ) Net regulatory liabilities $ (363,890 ) $ (376,777 ) (1) Included in Deferred charges and other assets on the Consolidated Balance Sheets. Recovery period is greater than five years. (See Note 11 - Pension and Other Postretirement Benefits ). (2) Asset balance is included in Deferred charges and other assets and Prepaid and other assets on the Consolidated Balance Sheets. Liability balance is included in Other current liabilities and Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. The actual amounts, when realized at settlement, become a component of purchased gas costs under Southwest’s PGA mechanisms. (For specific details, see Note 13 - Derivatives ). (3) Balance recovered or refunded on an ongoing basis with interest. (4) Included in Prepaid and other current assets on the Consolidated Balance Sheets. Balance recovered or refunded on an ongoing basis. (5) Included in Deferred charges and other assets on the Consolidated Balance Sheets. Recovered over life of debt instruments. (6) Included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. Amortized over life of debt instruments. (7) U.S. tax reform enacted in December 2017 required a remeasurement and reduction of the net accumulated deferred income tax liability. The reduction (excess accumulated deferred taxes) became a regulatory liability with appropriate tax gross-up. The excess deferred taxes reduce rate base. The tax benefit will be returned to utility customers in accordance with IRS and regulatory requirements. Included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets, except for $3 million which is in Other current liabilities. This amount also includes a $2.7 million gross-up related to contributions in aid of construction. (8) Regulatory recovery occurs on a one-year lag basis through the labor loading process. Included in Prepaid and other current assets on the Consolidated Balance Sheets. (9) Margin tracking/decoupling mechanisms are alternative revenue programs and revenue associated with under-collections (for the difference between authorized margin levels and amounts billed to customers through rates currently) are recognized as revenue so long as recovery is expected to take place within 24 months. Total category asset balances are included in Prepaid and other current assets on the Consolidated Balance Sheets. Total category liability balances are included in Other current liabilities and Other deferred credits and other long-term liabilities. (10) Th e following tables detail the components of Other regulatory assets and liabilities. Other regulatory assets are included in either Prepaid and other current assets or Deferred charges and other assets on the Consolidated Balance Sheets (as indicated). Recovery periods vary. Other regulatory liabilities are included in either Other current liabilities or Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets (as indicated). December 31, (Thousands of dollars) 2019 2018 Other Regulatory Assets: State mandated public purpose programs (including low income and conservation programs) (a) (e) $ 9,172 $ 6,253 Infrastructure replacement programs and similar (b) (e) 8,236 12,486 Environmental compliance programs (c) (e) 5,768 5,046 Other (d) 9,958 8,831 $ 33,134 $ 32,616 a) Included in Prepaid and other current assets on the Consolidated Balance Sheets. b) Included in Deferred charges and other assets on the Consolidated Balance Sheets. c) In 2019 , approximately $5.0 million included in Prepaid and other current assets and $782,000 included in Deferred charges and other assets on the Consolidated Balance Sheets. In 2018 , approximately $4.5 million included in Prepaid and other current assets and $596,000 included in Deferred charges and other assets on the Consolidated Balance Sheets. d) In 2019 , $1.6 million included in Prepaid and other current assets and $8.3 million included in Deferred charges and other assets on the Consolidated Balance Sheets. In 2018 , $197,000 included in Prepaid and other current assets and $8.6 million included in Deferred charges and other assets on the Consolidated Balance Sheets. e) Balance recovered or refunded on an ongoing basis, generally with interest. December 31, (Thousands of dollars) 2019 2018 Other Regulatory Liabilities: State mandated public purpose programs (including low income and conservation programs) (a) (d) $ (308 ) $ (8,598 ) Environmental compliance programs (d) (e) (527 ) — Regulatory accounts for differences related to pension funding (b) (2,476 ) (3,221 ) Other (c) (d) (1,127 ) (819 ) $ (4,438 ) $ (12,638 ) a) Included in Other current liabilities on the Consolidated Balance Sheets. b) Included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. c) In 2019 , $(1.1) million included in Other current liabilities and $(9,000) included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. In 2018 , approximately $(810,000) included in Other current liabilities and $(9,000) included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. d) Balance recovered or refunded on an ongoing basis, generally with interest. e) In 2019 , included in Other current liabilities on the Consolidated Balance Sheet. |
Other Comprehensive Income an_2
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) | Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) Year Ended December 31, 2019 2018 2017 (Thousands of dollars) Before- Tax Amount Tax (Expense) or Benefit (1) Net-of- Tax Amount Before- Tax Amount Tax (Expense) or Benefit (1) Net-of- Tax Amount Before- Tax Amount Tax (Expense) or Benefit (1) Net-of- Tax Amount Defined benefit pension plans: Net actuarial gain/(loss) $ (71,087 ) $ 17,061 $ (54,026 ) $ (20,426 ) $ 4,902 $ (15,524 ) $ (43,027 ) $ 10,326 $ (32,701 ) Amortization of prior service cost 1,271 (305 ) 966 1,335 (320 ) 1,015 1,335 (507 ) 828 Amortization of net actuarial (gain)/loss 23,376 (5,610 ) 17,766 33,617 (8,068 ) 25,549 25,445 (9,669 ) 15,776 Prior service cost (1,878 ) 452 (1,426 ) — — — — — — Regulatory adjustment 36,944 (8,867 ) 28,077 (8,233 ) 1,976 (6,257 ) 12,340 250 12,590 Pension plans other comprehensive income (loss) (11,374 ) 2,731 (8,643 ) 6,293 (1,510 ) 4,783 (3,907 ) 400 (3,507 ) FSIRS (designated hedging activities): Amounts reclassified into net income 3,344 (803 ) 2,541 3,345 (804 ) 2,541 3,344 (1,271 ) 2,073 FSIRS other comprehensive income (loss) 3,344 (803 ) 2,541 3,345 (804 ) 2,541 3,344 (1,271 ) 2,073 Total other comprehensive income (loss) –Southwest Gas Corporation (8,030 ) 1,928 (6,102 ) 9,638 (2,314 ) 7,324 (563 ) (871 ) (1,434 ) Foreign currency translation adjustments: Translation adjustments 2,038 — 2,038 (3,010 ) — (3,010 ) 1,771 — 1,771 Foreign currency other comprehensive income (loss) 2,038 — 2,038 (3,010 ) — (3,010 ) 1,771 — 1,771 Total other comprehensive income (loss) – Southwest Gas Holdings, Inc. $ (5,992 ) $ 1,928 $ (4,064 ) $ 6,628 $ (2,314 ) $ 4,314 $ 1,208 $ (871 ) $ 337 (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, tax amounts were calculated using a 38% rate. At December 31, 2017, excess taxes related to pre-tax amounts accumulating in AOCI prior to tax reform were required to remain in the account until the first quarter of 2018, when ASU 2018-02 was adopted, permitting previously stranded amounts to be released from AOCI and applied to Retained earnings. 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, and no repatriation of earnings anticipated, the Company is not recognizing a tax effect or presenting a tax expense or benefit for currency translation adjustments in Other comprehensive income (loss). |
Schedule of Estimated Amounts Amortized from Accumulated Other Comprehensive Income or Regulatory Assets into Net Periodic Benefit Cost | The estimated amounts that will be amortized from accumulated other comprehensive income or regulatory assets into net periodic benefit cost over the next year are summarized below: (Thousands of dollars) Retirement plan net actuarial loss $ 36,000 SERP net actuarial loss 1,800 PBOP prior service cost 1,200 |
Rollforward of Accumulated Other Comprehensive Income | The following table represents a rollforward of AOCI, presented on the Company’s Consolidated Balance Sheets and its Consolidated Statements of Equity: Defined Benefit Plans FSIRS Foreign Currency Items (Thousands of dollars) Before-Tax Tax (Expense) Benefit (4,5) After-Tax (5) Before- Tax Tax 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 ) Net actuarial gain/(loss) (71,087 ) 17,061 (54,026 ) — — — — — — (54,026 ) Translation adjustments — — — — — — 2,038 — 2,038 2,038 Other comprehensive income before reclassifications (71,087 ) 17,061 (54,026 ) — — — 2,038 — 2,038 (51,988 ) FSIRS amounts reclassified from AOCI (1) — — — 3,344 (803 ) 2,541 — — — 2,541 Amortization of prior service cost (2) 1,271 (305 ) 966 — — — — — — 966 Amortization of net actuarial loss (2) 23,376 (5,610 ) 17,766 — — — — — — 17,766 Prior service cost (1,878 ) 452 (1,426 ) — — — — — — (1,426 ) Regulatory adjustment (3) 36,944 (8,867 ) 28,077 — — — — — 28,077 Net current period other (11,374 ) 2,731 (8,643 ) 3,344 (803 ) 2,541 2,038 — 2,038 (4,064 ) Ending Balance AOCI December 31, 2019 $ (66,601 ) $ 15,985 $ (50,616 ) $ (5,966 ) $ 1,431 $ (4,535 ) $ (1,581 ) $ — $ (1,581 ) $ (56,732 ) (1) The FSIRS reclassification amounts are included in Net interest deductions on the Company’s Consolidated Statements of Income. (2) These AOCI components are included in the computation of net periodic benefit cost (see Note 11 - Pension and Other Postretirement Benefits 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 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 Consolidated Balance Sheets: Defined Benefit Plans FSIRS (Thousands of dollars) 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 ) Net actuarial gain/(loss) (71,087 ) 17,061 (54,026 ) — — — (54,026 ) Other comprehensive loss before reclassifications (71,087 ) 17,061 (54,026 ) — — — (54,026 ) FSIRS amounts reclassified from AOCI (6) — — — 3,344 (803 ) 2,541 2,541 Amortization of prior service cost (7) 1,271 (305 ) 966 — — — 966 Amortization of net actuarial loss (7) 23,376 (5,610 ) 17,766 — — — 17,766 Prior service cost (1,878 ) 452 (1,426 ) — — — (1,426 ) Regulatory adjustment (8) 36,944 (8,867 ) 28,077 — — — 28,077 Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation (11,374 ) 2,731 (8,643 ) 3,344 (803 ) 2,541 (6,102 ) Ending Balance AOCI December 31, 2019 $ (66,601 ) $ 15,985 $ (50,616 ) $ (5,966 ) $ 1,431 $ (4,535 ) $ (55,151 ) (6) The FSIRS reclassification amounts are included in Net interest deductions on Southwest’s Consolidated Statements of Income. (7) These AOCI components are included in the computation of net periodic benefit cost (see Note 11 - Pension and Other Postretirement Benefits 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 Deferred charges and other assets on Southwest’s 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. |
Amount Recognized Before Income Tax in Accumulated Other Comprehensive Income | e 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: Year Ended December 31, (Thousands of dollars) 2019 2018 Net actuarial loss $ (483,074 ) $ (435,364 ) Prior service cost (3,641 ) (3,033 ) Less: amount recognized in regulatory assets 420,114 383,170 Recognized in AOCI $ (66,601 ) $ (55,227 ) Other Changes in Plan Assets and Benefit Obligations Recognized in Net Periodic Benefit Cost and Other Comprehensive Income Year Ended December 31, 2019 2018 2017 (Thousands of dollars) Total Qualified Retirement Plan SERP PBOP Total Qualified Retirement Plan SERP PBOP Total Qualified Retirement Plan SERP PBOP Net actuarial loss (gain) (a) $ 71,087 $ 66,557 $ 7,975 $ (3,445 ) $ 20,426 $ 23,607 $ (3,940 ) $ 759 $ 43,027 $ 44,149 $ 3,334 $ (4,456 ) Amortization of prior service cost (b) (1,271 ) — — (1,271 ) (1,335 ) — — (1,335 ) (1,335 ) — — (1,335 ) Amortization of net actuarial loss (b) (23,376 ) (22,356 ) (1,020 ) — (33,617 ) (32,115 ) (1,502 ) — (25,445 ) (24,004 ) (1,441 ) — Prior service cost 1,878 — — 1,878 — — — — — — — — Regulatory adjustment (36,944 ) (39,782 ) — 2,838 8,233 7,657 — 576 (12,340 ) (18,131 ) — 5,791 Recognized in other comprehensive (income) loss 11,374 4,419 6,955 — (6,293 ) (851 ) (5,442 ) — 3,907 2,014 1,893 — Net periodic benefit costs recognized in net income 42,465 36,982 3,046 2,437 51,332 46,089 3,405 1,838 44,593 38,283 3,633 2,677 Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss $ 53,839 $ 41,401 $ 10,001 $ 2,437 $ 45,039 $ 45,238 $ (2,037 ) $ 1,838 $ 48,500 $ 40,297 $ 5,526 $ 2,677 The table above discloses the net gain or loss and prior service cost recognized in Other comprehensive income, separated into (a) amounts initially recognized in Other comprehensive income, and (b) amounts subsequently recognized as adjustments to Other comprehensive income as those amounts are amortized as components of net periodic benefit cost |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Common Stock Activity | The following table provides the activity in the Equity Shelf Program for the three-month and life-to-date periods ended December 31, 2019 : Three Months Ended Life-To-Date Ended December 31, 2019 Gross proceeds $ 24,999,876 $ 124,337,247 Less: agent commissions (249,999 ) (1,243,372 ) Net proceeds $ 24,749,877 $ 123,093,875 Number of shares sold 331,990 1,478,945 Weighted average price per share $ 75.30 $ 84.07 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Amounts and Estimated Fair Values of Long-Term Debt | Carrying amounts of long-term debt and related estimated fair values as of December 31, 2019 and 2018 are disclosed in the following table. The fair value hierarchy is described in Note 1 - Background, Organization, and Summary of Significant Accounting Policies . December 31, 2019 2018 Carrying Amount Market Value Carrying Amount Market Value (Thousands of dollars) Southwest Gas Corporation: Debentures: Notes, 4.45%, due 2020 $ 125,000 $ 126,673 $ 125,000 $ 126,213 Notes, 6.1%, due 2041 125,000 162,666 125,000 150,728 Notes, 3.875%, due 2022 250,000 258,550 250,000 254,195 Notes, 4.875%, due 2043 250,000 291,928 250,000 268,985 Notes, 3.8%, due 2046 300,000 308,307 300,000 267,030 Notes, 3.7%, due 2028 300,000 320,685 300,000 298,926 Notes, 4.15%, due 2049 300,000 330,138 — — 8% Series, due 2026 75,000 96,905 75,000 93,827 Medium-term notes, 7.78% series, due 2022 25,000 27,500 25,000 27,497 Medium-term notes, 7.92% series, due 2027 25,000 32,543 25,000 30,016 Medium-term notes, 6.76% series, due 2027 7,500 9,156 7,500 8,651 Unamortized discount and debt issuance costs (14,450 ) (11,807 ) 1,768,050 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 (1,717 ) (2,024 ) 198,283 197,976 Less: current maturities (125,000 ) — Long-term debt, less current maturities – Southwest Gas Corporation $ 1,991,333 $ 1,818,669 Centuri: Centuri term loan facility $ 244,812 252,182 $ 255,959 260,135 Unamortized debt issuance costs (1,101 ) (1,414 ) 243,711 254,545 Centuri secured revolving credit facility 60,021 60,057 — — Centuri other debt obligations 43,929 44,787 67,104 67,053 Less: current maturities (38,512 ) (33,060 ) Long-term debt, less current maturities – Centuri $ 309,149 $ 288,589 Consolidated Southwest Gas Holdings, Inc.: Southwest Gas Corporation long-term debt $ 2,116,333 $ 1,818,669 Centuri long-term debt 347,661 321,649 Less: current maturities (163,512 ) (33,060 ) Long-term debt, less current maturities – Southwest Gas Holdings, Inc. $ 2,300,482 $ 2,107,258 |
Summary of Effective Interest Rates on Variable-Rate IDRBs | The effective interest rates on Southwest’s variable-rate IDRBs are included in the table below: December 31, 2019 2018 2003 Series A 2.51 % 2.61 % 2008 Series A 2.46 % 2.52 % 2009 Series A 2.37 % 2.51 % Tax-exempt Series A 2.32 % 2.53 % |
Estimated Maturities of Long-Term Debt | Estimated maturities of long-term debt for the next five years are: (Thousands of dollars) Southwest Centuri Total 2020 $ 125,000 $ 38,512 $ 163,512 2021 — 33,785 33,785 2022 425,000 35,783 460,783 2023 — 240,681 240,681 2024 — — — |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-Based Plan Compensation Expense, Including Cash Award | The table below shows total share-based plan compensation expense which was recognized in the Consolidated Statements of Income: Year Ended December 31, (Thousands of dollars) 2019 2018 2017 Share-based compensation plan expense, net of related tax benefits $ 5,154 $ 4,644 $ 6,751 Share-based compensation plan related tax benefits 1,627 1,467 4,137 |
Schedule of Nonvested Performance and Restricted Stock Unit Plans | The following table summarizes the activity of the management incentive plan shares and restricted stock/units as of December 31, 2019 (thousands of shares): Management Incentive Plan Shares Weighted- average grant date fair value Restricted Stock/ Units (1) Weighted- average grant date fair value Nonvested/unissued at December 31, 2018 65 $ 66.51 323 $ 56.16 Granted — 108 81.75 Dividends 1 7 Forfeited or expired — — (9 ) 77.80 Vested and issued (2) (37 ) 55.31 (64 ) 63.21 Nonvested/unissued at December 31, 2019 29 $ 79.16 365 $ 60.94 (1) The number of securities granted includes 57,500 performance shares, which was derived by assuming that target performance will be achieved during the relevant performance period. (2) Includes shares for retiree payouts and those converted for taxes. |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Assumptions Used | he rates are presented in the table below: December 31, 2019 2018 Discount rate 3.50 % 4.50 % Weighted-average rate of compensation increase 3.25 % 3.25 % Asset return assumption 6.75 % 7.00 % |
Schedule of Defined Benefit Plans Disclosures | The following table sets forth the retirement plan, SERP, and PBOP funded statuses and amounts recognized on the Consolidated Balance Sheets and Consolidated Statements of Income. Year Ended December 31, 2019 2018 (Thousands of dollars) Qualified Retirement Plan SERP PBOP Qualified Retirement Plan SERP PBOP Change in benefit obligations: Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) $ 1,116,014 $ 40,603 $ 69,956 $ 1,203,484 $ 45,727 $ 75,322 Service cost 25,864 266 1,276 28,555 245 1,473 Interest cost 49,006 1,760 3,046 44,174 1,658 2,748 Plan amendments — — 1,878 — — — Actuarial loss (gain) 192,416 7,974 3,156 (102,919 ) (3,940 ) (6,020 ) Benefits paid (53,723 ) (3,206 ) (3,201 ) (57,280 ) (3,087 ) (3,567 ) Benefit obligation at end of year (PBO/PBO/APBO) 1,329,577 47,397 76,111 1,116,014 40,603 69,956 Change in plan assets: Market value of plan assets at beginning of year 790,614 — 47,341 871,665 — 54,608 Actual return on plan assets 186,102 — 9,757 (67,771 ) — (3,061 ) Employer contributions 52,000 3,206 — 44,000 3,087 — Benefits paid (53,723 ) (3,206 ) (4,260 ) (57,280 ) (3,087 ) (4,206 ) Market value of plan assets at end of year 974,993 — 52,838 790,614 — 47,341 Funded status at year end $ (354,584 ) $ (47,397 ) $ (23,273 ) $ (325,400 ) $ (40,603 ) $ (22,615 ) Weighted-average assumptions (benefit obligation): Discount rate 3.50 % 3.50 % 3.50 % 4.50 % 4.50 % 4.50 % Weighted-average rate of compensation increase 3.25 % 3.25 % N/A 3.25 % 3.25 % N/A |
Schedule of Accumulated Benefit Obligation | The accumulated benefit obligation for the retirement plan and the SERP is presented below: December 31, (Thousands of dollars) 2019 2018 Retirement plan $ 1,219,989 $ 1,024,030 SERP 46,067 38,793 |
Schedule of Expected Benefit Payments | Benefits expected to be paid for pension, SERP, and PBOP over the next 10 years are as follows: (Millions of dollars) 2020 2021 2022 2023 2024 2025-2029 Pension $ 56.0 $ 58.0 $ 59.0 $ 60.0 $ 61.0 $ 331.0 SERP 3.1 3.1 3.1 3.1 3.1 14.8 PBOP 4.9 4.9 4.9 4.9 4.8 22.5 |
Schedule of New Accounting Pronouncements | Therefore, upon adoption of the update to Topic 715, amounts presented in the Company’s and Southwest’s Consolidated Statements of Income for the year ended 2017 were revised in financial information that presents 2017 as a comparative period, as follows: Year Ended December 31, 2017 (Thousands of dollars) Originally Reported Reclassification Revised Southwest Gas Holdings, Inc. Operations and maintenance $ 412,187 $ (19,424 ) $ 392,763 Other income (deductions) 13,394 (19,424 ) (6,030 ) Southwest Gas Corporation Operations and maintenance $ 410,745 $ (19,424 ) $ 391,321 Other income (deductions) 13,036 (19,424 ) (6,388 ) |
Schedule of Net Benefit Cost | Components of net periodic benefit cost: Qualified Retirement Plan SERP PBOP (Thousands of dollars) 2019 2018 2017 2019 2018 2017 2019 2018 2017 Service cost $ 25,864 $ 28,555 $ 23,392 $ 266 $ 245 $ 309 $ 1,276 $ 1,473 $ 1,468 Interest cost 49,006 44,174 46,083 1,760 1,658 1,883 3,046 2,748 3,232 Expected return on plan assets (60,244 ) (58,755 ) (55,196 ) — — — (3,156 ) (3,718 ) (3,358 ) Amortization of prior service cost — — — — — — 1,271 1,335 1,335 Amortization of net actuarial loss 22,356 32,115 24,004 1,020 1,502 1,441 — — — Net periodic benefit cost $ 36,982 $ 46,089 $ 38,283 $ 3,046 $ 3,405 $ 3,633 $ 2,437 $ 1,838 $ 2,677 Weighted-average assumptions (net benefit cost) Discount rate 4.50 % 3.75 % 4.50 % 4.50 % 3.75 % 4.50 % 4.50 % 3.75 % 4.50 % Expected return on plan assets 7.00 % 7.00 % 7.00 % N/A N/A N/A 7.00 % 7.00 % 7.00 % Weighted-average rate of compensation increase 3.25 % 3.25 % 3.25 % 3.25 % 3.25 % 3.25 % N/A N/A N/A |
Schedule of Amounts Recognized in Other Comprehensive Income | e 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: Year Ended December 31, (Thousands of dollars) 2019 2018 Net actuarial loss $ (483,074 ) $ (435,364 ) Prior service cost (3,641 ) (3,033 ) Less: amount recognized in regulatory assets 420,114 383,170 Recognized in AOCI $ (66,601 ) $ (55,227 ) Other Changes in Plan Assets and Benefit Obligations Recognized in Net Periodic Benefit Cost and Other Comprehensive Income Year Ended December 31, 2019 2018 2017 (Thousands of dollars) Total Qualified Retirement Plan SERP PBOP Total Qualified Retirement Plan SERP PBOP Total Qualified Retirement Plan SERP PBOP Net actuarial loss (gain) (a) $ 71,087 $ 66,557 $ 7,975 $ (3,445 ) $ 20,426 $ 23,607 $ (3,940 ) $ 759 $ 43,027 $ 44,149 $ 3,334 $ (4,456 ) Amortization of prior service cost (b) (1,271 ) — — (1,271 ) (1,335 ) — — (1,335 ) (1,335 ) — — (1,335 ) Amortization of net actuarial loss (b) (23,376 ) (22,356 ) (1,020 ) — (33,617 ) (32,115 ) (1,502 ) — (25,445 ) (24,004 ) (1,441 ) — Prior service cost 1,878 — — 1,878 — — — — — — — — Regulatory adjustment (36,944 ) (39,782 ) — 2,838 8,233 7,657 — 576 (12,340 ) (18,131 ) — 5,791 Recognized in other comprehensive (income) loss 11,374 4,419 6,955 — (6,293 ) (851 ) (5,442 ) — 3,907 2,014 1,893 — Net periodic benefit costs recognized in net income 42,465 36,982 3,046 2,437 51,332 46,089 3,405 1,838 44,593 38,283 3,633 2,677 Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss $ 53,839 $ 41,401 $ 10,001 $ 2,437 $ 45,039 $ 45,238 $ (2,037 ) $ 1,838 $ 48,500 $ 40,297 $ 5,526 $ 2,677 The table above discloses the net gain or loss and prior service cost recognized in Other comprehensive income, separated into (a) amounts initially recognized in Other comprehensive income, and (b) amounts subsequently recognized as adjustments to Other comprehensive income as those amounts are amortized as components of net periodic benefit cost |
Schedule of Fair Value of Plan Assets | The following table sets forth, by level within the three-level fair value hierarchy, the fair values of the assets of the qualified pension plan and the PBOP as of December 31, 2019 and 2018 . The SERP has no assets. December 31, 2019 2018 (Thousands of dollars) Qualified Retirement Plan PBOP Total Qualified Retirement Plan PBOP Total Assets at fair value: Level 1 – Quoted prices in active markets for identical financial assets Mutual funds $ — $ 29,188 $ 29,188 $ — $ 25,299 $ 25,299 Total Level 1 Assets (1) $ — $ 29,188 $ 29,188 $ — $ 25,299 $ 25,299 Level 2 – Significant other observable inputs Private commingled equity funds (2) Global $ 266,908 $ 6,338 $ 273,246 $ 215,280 $ 5,896 $ 221,176 International 117,086 2,780 119,866 94,465 2,588 97,053 U.S. equity securities 184,642 4,386 189,028 147,693 4,045 151,738 Emerging markets 62,943 1,494 64,437 50,817 1,392 52,209 Private commingled fixed income funds (3) 335,138 7,959 343,097 274,062 7,506 281,568 Pooled funds and mutual funds 5,359 689 6,048 5,198 610 5,808 Government fixed income and mortgage backed securities 181 4 185 163 5 168 Total Level 2 assets (4) $ 972,257 $ 23,650 $ 995,907 $ 787,678 $ 22,042 $ 809,720 Total Plan assets at fair value $ 972,257 $ 52,838 $ 1,025,095 $ 787,678 $ 47,341 $ 835,019 Insurance company general account contracts (5) 2,736 — 2,736 2,936 — 2,936 Total Plan assets $ 974,993 $ 52,838 $ 1,027,831 $ 790,614 $ 47,341 $ 837,955 (1) The Mutual funds category above is a balanced fund that invests in a diversified portfolio of common stocks, preferred stocks, and fixed-income securities. Under normal circumstances the balanced fund will hold no more than 75%, and no less than 25%, of its total assets in equity securities. The fund seeks regular income, conservation of principal, and an opportunity for long-term growth of principal and income. (2) The private commingled equity funds include common collective trusts that invest in a diversified portfolio of securities regularly traded on securities exchanges. These funds are shown in the above table at net asset value (“NAV”), which is the value of securities in the fund less the amount of any liabilities outstanding. Strategies employed by the funds include investment in: ▪ Global equities, including domestic equities ▪ International developed countries equities ▪ Domestic equities ▪ Emerging markets equities Shares in the private commingled equity funds may be redeemed given one business day notice. While they are private equity funds and reported at NAV, due to the short redemption notice period, the lack of redemption fees, the fact that the underlying investments are exchange-traded, and that substantial liabilities do not exist subject to the NAV calculation, these investments are viewed as indirectly observable (Level 2) in the fair value hierarchy and are therefore not excluded from the body of the fair value table as a reconciling item. The global fund provides diversified exposure to global equity markets. The fund seeks to provide long-term capital growth by investing primarily in securities listed on the major developed equity markets of the U.S., Europe, and Asia, as well as within those listed on emerging country equity markets on a tactical basis. The international fund invests in international financial markets, primarily those of developed economies in Europe and the Pacific Basin. The fund invests primarily in equity securities issued by foreign corporations, but may invest in other securities perceived as offering attractive investment return opportunities. The domestic equities securities funds include a large and medium capitalization fund and a small capitalization fund. The large and medium capitalization fund is designed to track the performance of the large and medium capitalization companies contained in the index, which represents approximately 90% of the market capitalization of the U.S. stock market. The small capitalization fund is designed to provide maximum long-term appreciation through investments that are well diversified by industry. The emerging markets fund was developed to invest in emerging market equities worldwide. The purposes of the fund’s operations, “emerging market countries,” include every country in the world except the developed markets of the U.S., Canada, Japan, Australia, New Zealand, Hong Kong, and Singapore, and most countries located in Western Europe. Fund investments are made directly in each country or, where direct investment is inefficient or prohibited, through appropriate financial instruments or participation in commingled funds. (3) The private commingled fixed income funds consist primarily of fixed income debt securities issued by the U.S. Treasury, government agencies, and fixed income debt securities issued by corporations. The fixed income fund investments may include the use of high yield, international fixed income securities and other instruments, including derivatives, to ensure prudent diversification over a broad spectrum of investments. The changes in the value of the fixed income funds are intended to offset the changes in the pension plan liabilities due to changes in the discount rate. These funds are shown in the above table at NAV. Shares in the private commingled fixed equity funds may be redeemed given one business day notice. While they are private fixed income funds and reported at NAV, due to the short redemption notice period, the lack of redemption fees, the fact that the underlying investments are exchange-traded, and that substantial liabilities do not exist subject to the NAV calculation, these investments are viewed as indirectly observable (Level 2), and are also not excluded from the body of the fair value table as a reconciling item. (4) With the exception of items (2) and (3), which are discussed in detail above, the Level 2 assets consist mainly of pooled funds and mutual funds. These funds are collective short-term funds that invest in Treasury bills and money market funds and are used as a temporary cash repository. (5) The insurance company general account contracts are annuity insurance contracts used to pay the pensions of employees who retired prior to 1989. The balance of the account disclosed in the above table is the contract value, which is the result of deposits, withdrawals, and interest credits. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Before Taxes and Noncontrolling Interest for Domestic and Foreign Operations | The following is a summary of income before taxes and noncontrolling interest for domestic and foreign operations: Year ended December 31, (Thousands of dollars) 2019 2018 2017 U.S. $ 261,525 $ 235,120 $ 246,131 Foreign 11,145 8,216 12,899 Total income before income taxes $ 272,670 $ 243,336 $ 259,030 |
Summary of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following: Year Ended December 31, (Thousands of dollars) 2019 2018 2017 Current: Federal $ 4,109 $ (17,584 ) $ 318 State 250 (6,783 ) 1,420 4,359 (24,367 ) 1,738 Deferred: Federal 29,543 58,136 60,662 State 1,071 10,222 735 30,614 68,358 61,397 Total income tax expense $ 34,973 $ 43,991 $ 63,135 Income tax expense (benefit) consists of the following: Year Ended December 31, (Thousands of dollars) 2019 2018 2017 Current: Federal $ 622 $ (13,476 ) $ (1,316 ) State (1,510 ) (3,219 ) 2,965 Foreign 5,013 2,563 5,203 4,125 (14,132 ) 6,852 Deferred: Federal 45,593 67,784 58,443 State 8,212 8,901 1,837 Foreign (1,907 ) (869 ) (2,044 ) 51,898 75,816 58,236 Total income tax expense $ 56,023 $ 61,684 $ 65,088 |
Significant Components of Deferred Income Tax Expense (Benefit) | Deferred income tax expense (benefit) consists of the following significant components: Year Ended December 31, (Thousands of dollars) 2019 2018 2017 Deferred federal and state: Property-related items $ 60,449 $ 94,899 $ 44,516 Purchased gas cost adjustments 3,834 (3,507 ) 8,500 Employee benefits 7,680 (7,334 ) (2,517 ) Regulatory adjustments (11,962 ) 2,412 14,401 All other deferred (7,857 ) (10,041 ) (5,935 ) Total deferred federal and state 52,144 76,429 58,965 Deferred ITC, net (246 ) (613 ) (729 ) Total deferred income tax expense $ 51,898 $ 75,816 $ 58,236 Deferred income tax expense (benefit) consists of the following significant components: Year Ended December 31, (Thousands of dollars) 2019 2018 2017 Deferred federal and state: Property-related items $ 34,398 $ 67,576 $ 49,129 Purchased gas cost adjustments 3,834 (3,507 ) 8,500 Employee benefits 6,493 2,156 (5,707 ) Regulatory Adjustments (11,962 ) 2,412 14,401 All other deferred (1,903 ) 334 (4,197 ) Total deferred federal and state 30,860 68,971 62,126 Deferred ITC, net (246 ) (613 ) (729 ) Total deferred income tax expense $ 30,614 $ 68,358 $ 61,397 |
Reconciliation of U.S Federal Statutory Rate to Consolidated Effective Tax Rate | A reconciliation of the U.S. federal statutory rate to the consolidated effective tax rate (and the sources of these differences and the effect of each) are summarized as follows: Year Ended December 31, 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 21.0 % 35.0 % Net state taxes 0.7 2.1 0.6 Tax credits (0.4 ) (0.4 ) (0.4 ) Company-owned life insurance (1.9 ) 0.3 (1.7 ) Change in U.S. Federal Income Tax Rate — — (3.6 ) Amortization of excess deferred taxes (1.2 ) — — All other differences (0.5 ) 1.1 (1.2 ) Effective income tax rate 17.7 % 24.1 % 28.7 % A reconciliation of the U.S. federal statutory rate to the consolidated effective tax rate (and the sources of these differences and the effect of each) are summarized as follows: Year Ended December 31, 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 21.0 % 35.0 % Net state taxes 2.1 2.9 1.1 Tax credits (0.3 ) (0.3 ) (0.4 ) Company-owned life insurance (1.5 ) 0.1 (1.6 ) Change in U.S. Federal Income Tax Rate — — (7.8 ) Amortization of excess deferred taxes (0.9 ) — — All other differences 0.1 1.6 (1.2 ) Consolidated effective income tax rate 20.5 % 25.3 % 25.1 % |
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of the following: December 31, (Thousands of dollars) 2019 2018 Deferred tax assets: Deferred income taxes for future amortization of ITC and excess deferred taxes $ 105,077 $ 105,791 Employee benefits 37,439 39,215 Alternative minimum tax credit 4,409 21,603 Federal net operating losses 7,467 13,125 Interest rate swap 1,432 2,235 Lease-related item 21,226 — Other 20,104 21,191 Valuation allowance (25 ) (1,132 ) 197,129 202,028 Deferred tax liabilities: Property-related items, including accelerated depreciation 732,798 678,307 Regulatory balancing accounts 9,931 6,097 Unamortized ITC 122 368 Debt-related costs 2,818 3,110 Intangibles 10,611 7,807 Lease-related item 20,386 — Other 19,447 34,276 796,113 729,965 Net noncurrent deferred tax liabilities $ 598,984 $ 527,937 Deferred tax assets and liabilities consist of the following: December 31, (Thousands of dollars) 2019 2018 Deferred income taxes for future amortization of ITC and excess deferred taxes $ 105,077 $ 105,791 Employee benefits 13,574 17,337 Alternative minimum tax credit 4,409 21,603 Federal net operating losses — 4,557 Interest rate swap 1,432 2,235 Other 10,761 13,362 Valuation allowance (25 ) (37 ) 135,228 164,848 Deferred tax liabilities: Property-related items, including accelerated depreciation 644,046 614,205 Regulatory balancing accounts 9,931 6,097 Unamortized ITC 122 368 Debt-related costs 2,818 3,110 Other 17,361 31,526 674,278 655,306 Net deferred tax liabilities $ 539,050 $ 490,458 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, (Thousands of dollars) 2019 2018 Unrecognized tax benefits at beginning of year $ 971 $ 1,069 Gross increases – tax positions in prior period 85 — Gross decreases – tax positions in prior period — 98 Gross increases – current period tax positions — — Gross decreases – current period tax positions — — Settlements — — Lapse in statute of limitations — — Unrecognized tax benefits at end of year $ 1,056 $ 971 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, (Thousands of dollars) 2019 2018 Unrecognized tax benefits at beginning of year $ 971 $ 1,430 Gross increases – tax positions in prior period 85 — Gross decreases – tax positions in prior period — 459 Gross increases – current period tax positions — — Gross decreases – current period tax positions — — Settlements — — Lapse in statute of limitations — — Unrecognized tax benefits at end of year $ 1,056 $ 971 |
Summary of Income Before Taxes for Continuing and Discontinued Operations | The following is a summary of income before taxes: Year ended December 31, (Thousands of dollars) 2019 2018 2017 Total income before income taxes $ 198,144 $ 182,833 $ 219,953 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 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: December 31, (Thousands of dekatherms) 2019 2018 Contract notional amounts 11,965 13,387 |
Paid to and Received from Counterparties for Settlements of Matured Swaps | The following table presents the amounts paid to and received from counterparties for settlements of matured Swaps: Year Ended December 31, (Thousands of dollars) 2019 2018 2017 Paid to counterparties $ 10,438 $ 6,781 $ 3,100 Received from counterparties $ 1,352 $ 606 $ 1,685 |
Fair Values of Swaps in Consolidated Balance Sheets | Fair values of derivatives not designated as hedging instruments: (Thousands of dollars) December 31, 2019 Swap Position Instrument Balance Sheet Location Asset Derivatives Liability Derivatives Net Total Offsetting Balance Sheet Location (Regulatory Asset/(Liability)) Swaps Other current liabilities $ 3 $ (10,954 ) $ (10,951 ) Prepaid and other current assets Total $ 3 $ (10,954 ) $ (10,951 ) December 31, 2018 Swap Position Instrument Balance Sheet Location Asset Derivatives Liability Derivatives Net Total Offsetting Balance Sheet Location (Regulatory Asset/(Liability)) Swaps Prepaid and other current assets $ 243 $ (99 ) $ 144 Other current liabilities Swaps Other current liabilities 1,595 (3,347 ) (1,752 ) Prepaid and other current assets Swaps Other deferred credits 141 (251 ) (110 ) Deferred charges and other assets Total $ 1,979 $ (3,697 ) $ (1,718 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Accounts Receivable for Services | Accounts receivable for these services, which are not eliminated during consolidation, are presented in the table below: December 31, (Thousands of dollars) 2019 2018 Accounts receivable for Centuri services $ 15,235 $ 18,830 |
Schedule of Revenues by Geographic Area | The following table presents the amount of revenues for both segments by geographic area: December 31, (Thousands of dollars) 2019 2018 2017 Revenues (a) United States $ 2,893,201 $ 2,664,670 $ 2,345,134 Canada 226,716 215,343 203,658 Total $ 3,119,917 $ 2,880,013 $ 2,548,792 (a) Revenues are attributed to countries based on the location of customers. |
Schedule of Segment Reporting Information | The financial information pertaining to the natural gas operations and utility infrastructure services segments for each of the three years in the period ended December 31, 2019 is as follows: Year Ended December 31, 2019 (Thousands of dollars) Natural Gas Operations Utility Infrastructure Services Other Total Revenues from external customers $ 1,368,939 $ 1,592,252 $ — $ 2,961,191 Intersegment sales — 158,726 — 158,726 Total $ 1,368,939 $ 1,750,978 $ — $ 3,119,917 Interest income $ 6,356 $ — $ — $ 6,356 Interest expense $ 95,026 $ 14,086 $ 114 $ 109,226 Depreciation and amortization $ 215,620 $ 87,617 $ — $ 303,237 Income tax expense $ 34,973 $ 21,399 $ (349 ) $ 56,023 Segment net income $ 163,171 $ 52,404 $ (1,639 ) $ 213,936 Segment assets $ 6,798,746 $ 1,365,194 $ 6,108 $ 8,170,048 Capital expenditures $ 778,748 $ 159,400 $ — $ 938,148 Year Ended December 31, 2018 (Thousands of dollars) Natural Gas Operations Utility Infrastructure Services Other Total Revenues from external customers $ 1,357,728 $ 1,386,371 $ — $ 2,744,099 Intersegment sales — 135,914 — 135,914 Total $ 1,357,728 $ 1,522,285 $ — $ 2,880,013 Interest income $ 6,020 $ 88 $ — $ 6,108 Interest expense $ 81,740 $ 14,190 $ 741 $ 96,671 Depreciation and amortization $ 191,816 $ 57,396 $ — $ 249,212 Income tax expense $ 43,991 $ 18,420 $ (727 ) $ 61,684 Segment net income $ 138,842 $ 44,977 $ (1,542 ) $ 182,277 Segment assets $ 6,141,584 $ 1,215,573 $ 572 $ 7,357,729 Capital expenditures $ 682,869 $ 83,045 $ — $ 765,914 Year Ended December 31, 2017 (Thousands of dollars) Natural Gas Operations Utility Infrastructure Services Other Total Revenues from external customers $ 1,302,308 $ 1,149,325 $ — $ 2,451,633 Intersegment sales — 97,159 — 97,159 Total $ 1,302,308 $ 1,246,484 $ — $ 2,548,792 Interest income $ 2,784 $ 3 $ — $ 2,787 Interest expense $ 69,733 $ 7,986 $ 345 $ 78,064 Depreciation and amortization $ 201,922 $ 49,029 $ — $ 250,951 Income tax expense $ 63,135 $ 2,390 $ (437 ) $ 65,088 Segment net income $ 156,818 $ 38,360 $ (1,337 ) $ 193,841 Segment assets $ 5,482,669 $ 752,496 $ 1,901 $ 6,237,066 Capital expenditures $ 560,448 $ 63,201 $ — $ 623,649 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | The following table presents summarized quarterly financial data for 2019 and 2018 : Quarter Ended March 31 June 30 September 30 December 31 (Thousands of dollars, except per share amounts) 2019 Southwest Gas Holdings, Inc.: Operating revenues $ 833,539 $ 713,011 $ 725,230 $ 848,137 Operating income 140,480 54,869 38,258 138,204 Net income 95,384 22,832 6,525 91,906 Net income attributable to Southwest Gas Holdings, Inc. 94,809 22,056 5,353 91,718 Basic earnings per common share (1) 1.78 0.41 0.10 1.67 Diluted earnings per common share (1) 1.77 0.41 0.10 1.67 Southwest Gas Corporation: Operating revenues $ 520,677 $ 258,711 $ 209,980 $ 379,571 Operating income (loss) 148,713 24,069 (1,807 ) 112,678 Net income (loss) 103,389 3,369 (20,012 ) 76,425 2018 Southwest Gas Holdings, Inc.: Operating revenues $ 754,330 $ 670,883 $ 668,146 $ 786,654 Operating income 129,560 53,338 39,681 134,854 Net income 78,294 21,551 12,331 69,476 Net income attributable to Southwest Gas Holdings, Inc. 79,091 21,551 12,331 69,304 Basic earnings per common share (1) 1.63 0.44 0.25 1.36 Diluted earnings per common share (1) 1.63 0.44 0.25 1.36 Southwest Gas Corporation: Operating revenues $ 494,313 $ 275,679 $ 217,523 $ 370,213 Operating income 141,173 24,675 3 115,962 Net income (loss) 90,349 2,622 (13,670 ) 59,541 (1) The sum of quarterly earnings (loss) per average common share may not equal the annual earnings (loss) per share due to the ongoing change in the weighted-average number of common shares. |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Summary of Redeemable Noncontrolling Interest | The following depicts changes to the balance of the redeemable noncontrolling interest: Redeemable Noncontrolling Interest (Thousands of dollars) Balance, December 31, 2017 $ — Redeemable noncontrolling interest acquired 81,659 Net income attributable to redeemable noncontrolling interest 172 Balance, December 31, 2018 81,831 Net income attributable to redeemable noncontrolling interest 2,711 Balance, December 31, 2019 $ 84,542 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed | The final 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 0.9 22.5 Prepaid expenses and other current assets 1.1 0.1 1.2 Property and equipment 89.4 (1.0 ) 88.4 Intangible assets 89.3 — 89.3 Goodwill 188.5 (21.2 ) 167.3 Total assets acquired 426.6 (21.7 ) 404.9 Accounts payable 8.0 — 8.0 Accrued liabilities 6.9 1.5 8.4 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 1.5 101.5 Net assets acquired $ 326.6 $ (23.2 ) $ 303.4 |
Schedule of Pro Forma Consolidated Financial Information | The unaudited pro forma consolidated financial information for fiscal 2018 and fiscal 2017 (assuming the acquisition of Linetec occurred as of the beginning fiscal 2017) was as follows: Year Ended December 31, (In thousands of dollars, except per share amounts) 2018 2017 Total operating revenues $ 3,037,209 $ 2,626,721 Net income attributable to Southwest Gas Holdings, Inc. $ 187,642 $ 192,368 Basic earnings per share $ 3.80 $ 4.01 Diluted earnings per share $ 3.79 $ 4.01 |
Schedule of Statements of Income Operations | Actual results from Linetec operations, excluding transaction costs incurred by Centuri, included in the Consolidated Statements of Income since the date of acquisition are as follows: Year Ended December 31, (Thousands of dollars) 2019 2018 Utility infrastructure services revenues $ 236,099 $ 14,119 Net income attributable to Southwest Gas Holdings, Inc. 10,844 690 |
Background, Organization and _4
Background, Organization and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2018 | |
Significant Accounting Policies [Line Items] | ||||
Amortization expenses | $ 10,700,000 | $ 7,600,000 | $ 4,100,000 | |
Cumulative foreign earnings | 32,000,000 | |||
Goodwill impairment charges | 0 | 0 | ||
Business combination consideration | $ 4,700,000 | |||
Centuri | W.S. Nicholls Western Construction LTD | ||||
Significant Accounting Policies [Line Items] | ||||
VIR ownership percentage | 50.00% | |||
Exposure to loss as a result of its investment | $ 12,200,000 | |||
Money Market Funds | ||||
Significant Accounting Policies [Line Items] | ||||
Money market fund investments | 26,700,000 | 59,900,000 | ||
Money Market Funds | Southwest Gas Corporation | ||||
Significant Accounting Policies [Line Items] | ||||
Money market fund investments | 23,500,000 | 18,000,000 | ||
Gas Pipe Materials and Supplies | Prepaids and other current assets | ||||
Significant Accounting Policies [Line Items] | ||||
Gas pipe materials and operating supplies | 57,000,000 | 56,000,000 | ||
Prepaid and other current assets | $ 33,000,000 | 74,000,000 | ||
Linetec | Centuri | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of voting interests acquired | 80.00% | |||
Business combination consideration | $ 75,600,000 |
Background, Organization and _5
Background, Organization and Summary of Significant Accounting Policies - Schedule of Other Property and Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investment [Line Items] | ||
Other property | $ 18,814 | $ 14,153 |
Total | 784,173 | 623,551 |
Southwest Gas Corporation | ||
Investment [Line Items] | ||
Net cash surrender value of COLI policies | 132,072 | 114,405 |
Other property | 1,715 | 1,741 |
Total | 133,787 | 116,146 |
Centuri | ||
Investment [Line Items] | ||
Centuri property, equipment, and intangibles | 983,905 | 792,191 |
Centuri accumulated provision for depreciation and amortization | $ (352,333) | $ (298,939) |
Background, Organization and _6
Background, Organization and Summary of Significant Accounting Policies - Summary of Intangible Assets (Details) - Centuri - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 179,854 | $ 177,838 |
Accumulated Amortization | (29,343) | (18,017) |
Net Carrying Amount | 150,511 | 159,821 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 154,186 | 152,533 |
Accumulated Amortization | (20,735) | (11,716) |
Net Carrying Amount | 133,451 | 140,817 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 23,353 | 23,013 |
Accumulated Amortization | (6,754) | (5,234) |
Net Carrying Amount | 16,599 | 17,779 |
Customer contracts backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 270 | 270 |
Accumulated Amortization | (252) | (3) |
Net Carrying Amount | 18 | 267 |
Noncompete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,045 | 2,022 |
Accumulated Amortization | (1,602) | (1,064) |
Net Carrying Amount | $ 443 | $ 958 |
Background, Organization and _7
Background, Organization and Summary of Significant Accounting Policies - Schedule of Estimated Future Amortization of Intangible Assets (Details) - Centuri - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
2020 | $ 10,722 | |
2021 | 10,303 | |
2022 | 10,215 | |
2023 | 10,215 | |
2024 | 10,215 | |
Thereafter | 98,841 | |
Net Carrying Amount | $ 150,511 | $ 159,821 |
Background, Organization and _8
Background, Organization and Summary of Significant Accounting Policies - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | $ 359,045 | $ 179,314 |
Foreign currency translation adjustment | 5,150 | (8,945) |
Goodwill, Ending balance | 343,023 | 359,045 |
Neuco | ||
Goodwill [Roll Forward] | ||
Measurement-period adjustments | 182 | |
Linetec | ||
Goodwill [Roll Forward] | ||
Goodwill from acquisition | 188,494 | |
Measurement-period adjustments | (21,172) | |
Goodwill, Ending balance | 167,300 | |
Natural Gas Operations | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | 10,095 | 10,095 |
Foreign currency translation adjustment | 0 | 0 |
Goodwill, Ending balance | 10,095 | 10,095 |
Natural Gas Operations | Neuco | ||
Goodwill [Roll Forward] | ||
Measurement-period adjustments | 0 | |
Natural Gas Operations | Linetec | ||
Goodwill [Roll Forward] | ||
Goodwill from acquisition | 0 | |
Measurement-period adjustments | 0 | |
Utility Infrastructure Services | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | 348,950 | 169,219 |
Foreign currency translation adjustment | 5,150 | (8,945) |
Goodwill, Ending balance | 332,928 | 348,950 |
Utility Infrastructure Services | Neuco | ||
Goodwill [Roll Forward] | ||
Measurement-period adjustments | 182 | |
Utility Infrastructure Services | Linetec | ||
Goodwill [Roll Forward] | ||
Goodwill from acquisition | $ 188,494 | |
Measurement-period adjustments | $ (21,172) |
Background, Organization and _9
Background, Organization and Summary of Significant Accounting Policies - Schedule of Capitalized and Debt Portion of AFUDC (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Debt portion | $ 4,558 | $ 3,264 | $ 1,666 |
Equity portion | 4,161 | 3,627 | 2,296 |
AFUDC capitalized as part of utility plant | $ 8,719 | $ 6,891 | $ 3,962 |
AFUDC rate | 5.36% | 5.85% | 5.95% |
Background, Organization and_10
Background, Organization and Summary of Significant Accounting Policies - Other Income (Deductions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other income (deductions) | |||
Interest income | $ 6,356 | $ 6,108 | $ 2,787 |
Equity AFUDC | 4,161 | 3,627 | 2,296 |
Total other income (deductions) | 10,085 | (17,426) | (6,030) |
Southwest Gas Corporation | |||
Other income (deductions) | |||
Total other income (deductions) | 9,517 | (17,240) | (6,388) |
Corporate and administrative | |||
Other income (deductions) | |||
Total other income (deductions) | 102 | 52 | 13 |
Natural Gas Operations | |||
Other income (deductions) | |||
Interest income | 6,356 | 6,020 | 2,784 |
Natural Gas Operations | Operating Segments | Southwest Gas Corporation | |||
Other income (deductions) | |||
Change in COLI policies | 17,400 | (3,200) | 10,300 |
Interest income | 6,356 | 6,020 | 2,784 |
Equity AFUDC | 4,161 | 3,627 | 2,296 |
Other components of net periodic benefit cost | (15,059) | (21,059) | (19,424) |
Miscellaneous income and (expense) | (3,341) | (2,628) | (2,344) |
Total other income (deductions) | 9,517 | (17,240) | (6,388) |
Utility Infrastructure Services | |||
Other income (deductions) | |||
Interest income | 0 | 88 | 3 |
Utility Infrastructure Services | Operating Segments | Centuri | |||
Other income (deductions) | |||
Interest income | 0 | 88 | 3 |
Foreign transaction gain (loss) | 546 | (222) | (754) |
Equity in earnings of unconsolidated investment – Western | 439 | 531 | 1,052 |
Miscellaneous income and (expense) | (519) | (635) | 44 |
Total other income (deductions) | $ 466 | $ (238) | $ 345 |
Background, Organization and_11
Background, Organization and Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Average basic shares (in shares) | 54,245,000 | 49,419,000 | 47,965,000 |
Effect of dilutive securities: | |||
Management Incentive Plan shares (in shares) | 12,000 | 25,000 | 8,000 |
Restricted stock units (in shares) | 55,000 | 32,000 | 18,000 |
Average diluted shares (in shares) | 54,312,000 | 49,476,000 | 47,991,000 |
Number of performance share units granted (in shares) | 46,000 | 23,000 | 7,000 |
Utility Plant and Leases - Sche
Utility Plant and Leases - Schedule of Net Utility Plant (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | $ 7,813,221 | $ 7,134,239 |
Less: accumulated depreciation | (2,313,050) | (2,234,029) |
Construction work in progress | 185,026 | 193,028 |
Net utility plant | 5,685,197 | 5,093,238 |
Software and software-related intangibles | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 256,299 | 241,158 |
Storage | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 100,908 | 26,825 |
Transmission | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 391,864 | 386,159 |
Distribution | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 6,581,043 | 6,049,380 |
General | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 467,274 | 416,643 |
Other | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | $ 15,833 | $ 14,074 |
Utility Plant and Leases - Narr
Utility Plant and Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Jan. 01, 2019 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Annual utility depreciation and amortization expense percentage | 2.70% | 2.70% | 3.00% | ||
Amortization of intangibles | $ 10,700 | $ 7,600 | $ 4,100 | ||
Finance lease | 13,769 | $ 13,769 | |||
Gas, Transmission and Distribution Plant | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Annual utility depreciation and amortization expense percentage | 2.30% | ||||
Gas plant | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Amortization of intangibles | 13,200 | $ 13,600 | $ 14,300 | ||
Accounting Standards Update 2016-02 | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Operating lease ROU assets | $ 58,400 | ||||
Operating lease liabilities | 60,800 | ||||
Southwest Gas Corporation | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Operating lease ROU assets | 1,443 | $ 1,443 | |||
Operating lease liabilities | $ 1,453 | 1,453 | |||
Lease remaining lease term (up to) | 7 years | ||||
Southwest Gas Corporation | Accounting Standards Update 2016-02 | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Operating lease ROU assets | 1,900 | ||||
Operating lease liabilities | $ 1,900 | ||||
Centuri | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Operating lease ROU assets | $ 78,954 | 78,954 | |||
Operating lease liabilities | $ 82,174 | $ 82,174 | |||
Lease renewal term (up to) | 5 years | 5 years | |||
Lease remaining lease term (up to) | 18 years | ||||
Lease termination period | 1 year | ||||
Short-term lease total future lease payments | $ 5,100 | $ 5,100 | |||
Finance lease | $ 13,800 | $ 13,800 |
Utility Plant and Leases - Sc_2
Utility Plant and Leases - Schedule of Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 303,237 | $ 249,212 | $ 250,951 |
Gas plant | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 197,358 | $ 185,719 | $ 187,075 |
Utility Plant and Leases - Comp
Utility Plant and Leases - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Total lease cost - Southwest Gas Holdings, Inc. | $ 30,154 |
Southwest Gas Corporation | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 1,531 |
Centuri | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 12,235 |
Amortization of ROU assets | 137 |
Interest on lease liabilities | 34 |
Total finance lease cost | 171 |
Short-term lease cost | $ 16,217 |
Utility Plant and Leases - Supp
Utility Plant and Leases - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating cash flows from operating leases | $ 12,444 |
Operating cash flows from finance leases | 33 |
Financing cash flows from finance leases | 212 |
Operating leases | 24,687 |
Finance leases | 13,839 |
Southwest Gas Corporation | |
Lessee, Lease, Description [Line Items] | |
Operating cash flows from operating leases | 1,278 |
Operating cash flows from finance leases | 0 |
Financing cash flows from finance leases | 0 |
Operating leases | 862 |
Finance leases | 0 |
Centuri | |
Lessee, Lease, Description [Line Items] | |
Operating cash flows from operating leases | 11,166 |
Operating cash flows from finance leases | 33 |
Financing cash flows from finance leases | 212 |
Operating leases | 23,825 |
Finance leases | $ 13,839 |
Utility Plant and Leases - Su_2
Utility Plant and Leases - Supplemental Information Related to Leases Included in Balance Sheet (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating lease, weighted average remaining lease term (in years) | 10 years 3 months |
Finance lease, weighted average remaining lease term (in years) | 2 years 1 month 17 days |
Finance lease, weighted average discount rate | 4.03% |
Finance lease ROU assets | $ 14,264 |
Finance lease liabilities, current | 13,769 |
Finance lease liabilities, noncurrent | 355 |
Finance lease liabilities | $ 14,124 |
Finance lease, weighted average discount rate | 6.10% |
Southwest Gas Corporation | |
Lessee, Lease, Description [Line Items] | |
Operating lease ROU assets | $ 1,443 |
Operating lease liabilities, current | 723 |
Operating lease liabilities, noncurrent | 730 |
Total | $ 1,453 |
Operating lease, weighted average remaining lease term (in years) | 2 years 10 months 17 days |
Finance lease, weighted average discount rate | 3.18% |
Centuri | |
Lessee, Lease, Description [Line Items] | |
Operating lease ROU assets | $ 78,954 |
Operating lease liabilities, current | 8,851 |
Operating lease liabilities, noncurrent | 73,323 |
Total | 82,174 |
Finance lease liabilities, current | 13,800 |
Finance lease liabilities | $ 14,124 |
Utility Plant and Leases - Sc_3
Utility Plant and Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Finance Lease, Liability, Payment, Due [Abstract] | |
Finance lease liabilities | $ 14,124 |
Centuri | |
Lessee, Lease, Description [Line Items] | |
2020 | 12,225 |
2021 | 11,235 |
2022 | 10,613 |
2023 | 8,823 |
2024 | 8,065 |
Thereafter | 49,862 |
Total lease payments | 100,823 |
Less imputed interest | 18,649 |
Operating lease liabilities | 82,174 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2020 | 13,799 |
2021 | 143 |
2022 | 154 |
2023 | 87 |
2024 | 1 |
Thereafter | 0 |
Total lease payments | 14,184 |
Less imputed interest | 60 |
Finance lease liabilities | 14,124 |
Southwest Gas Corporation | |
Lessee, Lease, Description [Line Items] | |
2020 | 756 |
2021 | 376 |
2022 | 188 |
2023 | 78 |
2024 | 56 |
Thereafter | 74 |
Total lease payments | 1,528 |
Less imputed interest | 75 |
Operating lease liabilities | $ 1,453 |
Utility Plant and Leases - Sc_4
Utility Plant 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] | ||
Consolidated rental payments/lease expense | $ 64,047 | $ 67,236 |
Centuri | ||
Lessee, Lease, Description [Line Items] | ||
Consolidated rental payments/lease expense | 59,491 | 62,310 |
Southwest Gas Corporation | ||
Lessee, Lease, Description [Line Items] | ||
Consolidated rental payments/lease expense | $ 4,556 | $ 4,926 |
Utility Plant and Leases - Sc_5
Utility Plant and 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 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)TypeContractCustomer | |
Segment Reporting Information [Line Items] | |
Number of customers | Customer | 2,000,000 |
Number of customers party to contracts with rate components subject to negotiation (less than) | Customer | 24 |
Southwest Gas Corporation | |
Segment Reporting Information [Line Items] | |
Number of types of services provided to customers | 2 |
Centuri | |
Segment Reporting Information [Line Items] | |
Number of types of services provided to customers | 3 |
Number of types of agreements with customers | 2 |
Change in contract liability, revenue recognized | $ | $ 4.2 |
Number of contracts with original duration more than one year | Contract | 48 |
Revenue - Schedule of Gas Opera
Revenue - Schedule of Gas Operating Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 1,385,294 | $ 1,305,974 | $ 1,262,881 |
Alternative revenue program revenues (deferrals) | (25,112) | 45,979 | 35,347 |
Other revenues | 8,757 | 5,775 | 4,080 |
Total Gas operating revenues | 1,368,939 | 1,357,728 | 1,302,308 |
Tax Reform Savings Revenue Adjustments | |||
Disaggregation of Revenue [Line Items] | |||
Other revenues | (4,900) | (13,500) | |
Residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 972,788 | 887,220 | 857,204 |
Small commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 249,117 | 255,083 | 243,513 |
Large commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 48,935 | 53,192 | 52,379 |
Industrial/other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 22,074 | 23,489 | 22,026 |
Transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 92,380 | $ 86,990 | $ 87,759 |
Revenue - Summary of Revenue Di
Revenue - Summary of Revenue Disaggregated by Service Type, and Contract Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 1,385,294 | $ 1,305,974 | $ 1,262,881 |
Centuri | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,750,978 | 1,522,285 | 1,246,484 |
Master services agreement | Centuri | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,383,377 | 1,102,412 | 885,513 |
Bid contract | Centuri | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 367,601 | 419,873 | 360,971 |
Unit price contracts | Centuri | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,380,256 | 1,258,419 | 968,856 |
Fixed price contracts | Centuri | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 112,924 | 117,298 | 127,497 |
Time and materials contracts | Centuri | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 257,798 | 146,568 | 150,131 |
Gas infrastructure services | Centuri | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,238,974 | 1,123,682 | 891,139 |
Electric power infrastructure services | Centuri | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 247,717 | 32,629 | 18,114 |
Other | Centuri | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 264,287 | $ 365,974 | $ 337,231 |
Revenue - Summary of Informatio
Revenue - Summary of Information about Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Contracts receivable, net | $ 223,904 | $ 186,249 |
Revenue earned on contracts in progress in excess of billings | 99,399 | 87,520 |
Amounts billed in excess of revenue earned on contracts | $ 4,525 | $ 4,211 |
Revenue - Revenue Performance O
Revenue - Revenue Performance Obligation (Details) - Centuri - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 $ in Millions | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Transaction price allocated to unsatisfied performance obligations of contracts | $ 93.6 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 2 years |
Revenue - Schedule of Utility I
Revenue - Schedule of Utility Infrastructure Services Contracts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Billed on completed contracts and contracts in progress | $ 216,268 | $ 184,100 |
Other receivables | 8,456 | 2,588 |
Contracts receivable, gross | 224,724 | 186,688 |
Allowance for doubtful accounts | (820) | (439) |
Contracts receivable, net | $ 223,904 | $ 186,249 |
Receivables and Related Allow_3
Receivables and Related Allowances - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Gas utility customer accounts receivable balance | $ 148,173 | $ 138,149 |
Receivables and Related Allow_4
Receivables and Related Allowances - Schedule of Percent of Customers by State (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Arizona | |
Receivables And Related Allowances [Line Items] | |
Percent of customers by state: | 53.00% |
Nevada | |
Receivables And Related Allowances [Line Items] | |
Percent of customers by state: | 37.00% |
California | |
Receivables And Related Allowances [Line Items] | |
Percent of customers by state: | 10.00% |
Receivables and Related Allow_5
Receivables and Related Allowances - Schedule of Allowance for Uncollectibles (Details) - Allowance for Uncollectibles - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | $ 2,168 | $ 2,111 | $ 2,524 |
Additions charged to expense | 3,507 | 2,959 | 2,310 |
Accounts written off, less recoveries | (3,580) | (2,902) | (2,723) |
Ending Balance | $ 2,095 | $ 2,168 | $ 2,111 |
Receivables and Related Allow_6
Receivables and Related Allowances - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables And Related Allowances [Line Items] | ||
Customer accounts receivable | $ 474,097 | $ 413,926 |
Centuri | ||
Receivables And Related Allowances [Line Items] | ||
Customer accounts receivable | $ 323,300 |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities - Schedule of Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | $ 582,759 | $ 573,591 |
Net regulatory liabilities | (363,890) | (376,777) |
Other current liabilities | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (3,000) | |
Deferred purchased gas costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (60,755) | (79,762) |
Accumulated removal costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (395,000) | (383,000) |
Unrealized net gain on non-trading derivatives (Swaps) | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | 0 | (144) |
Unamortized gain on reacquired debt | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (8,181) | (8,717) |
Regulatory excess deferred taxes and gross -up | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (455,625) | (458,834) |
Margin, interest - and property tax-tracking | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (22,650) | (7,273) |
Other regulatory liabilities | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (4,438) | (12,638) |
Gross-up related to contributions in aid of construction | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (2,700) | |
Accrued pension and other postretirement benefit costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | 420,114 | 383,170 |
Unrealized net loss on non-trading derivatives (Swaps) | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | 10,951 | 1,862 |
Deferred purchased gas costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | 44,412 | 4,928 |
Accrued purchased gas costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | 8,000 | 29,000 |
Unamortized premium on reacquired debt | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | 18,249 | 19,599 |
Accrued absence time | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | 14,519 | 14,126 |
Margin, interest - and property tax-tracking | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | 33,380 | 88,290 |
Other regulatory assets | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | $ 33,134 | $ 32,616 |
Regulatory Assets and Liabili_4
Regulatory Assets and Liabilities - Schedule of Components of Other Regulatory Assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 582,759,000 | $ 573,591,000 |
State mandated public purpose programs (including low income and conservation programs) | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 9,172,000 | 6,253,000 |
Infrastructure replacement programs and similar | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 8,236,000 | 12,486,000 |
Environmental compliance programs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 5,768,000 | 5,046,000 |
Other | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 9,958,000 | 8,831,000 |
Other regulatory assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 33,134,000 | 32,616,000 |
Prepaids and other current assets | Environmental compliance programs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 5,000,000 | 4,500,000 |
Prepaids and other current assets | Other | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 1,600,000 | 197,000 |
Deferred charges and other assets | Environmental compliance programs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 782,000 | 596,000 |
Deferred charges and other assets | Other | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 8,300,000 | $ 8,600,000 |
Regulatory Assets and Liabili_5
Regulatory Assets and Liabilities - Schedule of Components of Other Regulatory Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other current liabilities | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ (3,000) | |
State mandated public purpose programs (including low income and conservation programs) | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | (308) | $ (8,598) |
Environmental compliance programs | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | (527) | 0 |
Regulatory accounts for differences related to pension funding | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | (2,476) | (3,221) |
Other | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | (1,127) | (819) |
Other | Other current liabilities | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | (1,100) | (810) |
Other | Other deferred credits and other long-term liabilities | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | (9) | (9) |
Other regulatory liabilities | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ (4,438) | $ (12,638) |
Other Comprehensive Income an_3
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") - Related Tax Effects Allocated to OCI (Detail) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 21, 2017 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) before reclassifications, net of tax | $ (51,988) | ||||
Other comprehensive income (loss), before tax | (5,992) | $ 6,628 | $ 1,208 | ||
Other comprehensive income (loss), tax | 1,928 | (2,314) | (871) | ||
Total other comprehensive income (loss), net of tax | $ (4,064) | $ 4,314 | $ 337 | ||
Effective income tax rate | 20.50% | 25.30% | 25.10% | 38.00% | 24.00% |
Southwest Gas Corporation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) before reclassifications, net of tax | $ (54,026) | ||||
Other comprehensive income (loss), before tax | (8,030) | $ 9,638 | $ (563) | ||
Other comprehensive income (loss), tax | 1,928 | (2,314) | (871) | ||
Total other comprehensive income (loss), net of tax | $ (6,102) | $ 7,324 | $ (1,434) | ||
Effective income tax rate | 17.70% | 24.10% | 28.70% | 24.00% | |
Defined Benefit Plans | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) before reclassifications, before tax | $ (71,087) | ||||
Other comprehensive income (loss) before reclassifications, tax | 17,061 | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (54,026) | ||||
Other comprehensive income (loss), before tax | (11,374) | $ 6,293 | $ (3,907) | ||
Other comprehensive income (loss), tax | 2,731 | (1,510) | 400 | ||
Total other comprehensive income (loss), net of tax | (8,643) | 4,783 | (3,507) | ||
Defined Benefit Plans | Southwest Gas Corporation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) before reclassifications, before tax | (71,087) | ||||
Other comprehensive income (loss) before reclassifications, tax | 17,061 | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (54,026) | ||||
Other comprehensive income (loss), before tax | (11,374) | ||||
Other comprehensive income (loss), tax | 2,731 | ||||
Total other comprehensive income (loss), net of tax | (8,643) | ||||
Amortization of prior service cost | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification from AOCI, before Tax | 1,271 | 1,335 | 1,335 | ||
Reclassification from AOCI, tax | (305) | (320) | (507) | ||
Reclassification from AOCI, net of tax | 966 | 1,015 | 828 | ||
Other comprehensive income (loss), before tax | 1,271 | ||||
Other comprehensive income (loss), tax | (305) | ||||
Total other comprehensive income (loss), net of tax | 966 | ||||
Amortization of prior service cost | Southwest Gas Corporation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | 1,271 | ||||
Other comprehensive income (loss), tax | (305) | ||||
Total other comprehensive income (loss), net of tax | 966 | ||||
Net actuarial gain/(loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) before reclassifications, before tax | (71,087) | (20,426) | (43,027) | ||
Other comprehensive income (loss) before reclassifications, tax | 17,061 | 4,902 | 10,326 | ||
Other comprehensive income (loss) before reclassifications, net of tax | (54,026) | (15,524) | (32,701) | ||
Reclassification from AOCI, before Tax | 23,376 | 33,617 | 25,445 | ||
Reclassification from AOCI, tax | (5,610) | (8,068) | (9,669) | ||
Reclassification from AOCI, net of tax | 17,766 | 25,549 | 15,776 | ||
Other comprehensive income (loss), before tax | 23,376 | ||||
Other comprehensive income (loss), tax | (5,610) | ||||
Total other comprehensive income (loss), net of tax | 17,766 | ||||
Net actuarial gain/(loss) | Southwest Gas Corporation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | 23,376 | ||||
Other comprehensive income (loss), tax | (5,610) | ||||
Total other comprehensive income (loss), net of tax | 17,766 | ||||
Prior service cost | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) before reclassifications, before tax | (1,878) | 0 | 0 | ||
Other comprehensive income (loss) before reclassifications, tax | 452 | 0 | 0 | ||
Other comprehensive income (loss) before reclassifications, net of tax | (1,426) | 0 | 0 | ||
Other comprehensive income (loss), before tax | (1,878) | ||||
Other comprehensive income (loss), tax | 452 | ||||
Total other comprehensive income (loss), net of tax | (1,426) | ||||
Prior service cost | Southwest Gas Corporation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | (1,878) | ||||
Other comprehensive income (loss), tax | 452 | ||||
Total other comprehensive income (loss), net of tax | (1,426) | ||||
Regulatory adjustment | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification from AOCI, before Tax | 36,944 | (8,233) | 12,340 | ||
Reclassification from AOCI, tax | (8,867) | 1,976 | 250 | ||
Reclassification from AOCI, net of tax | 28,077 | (6,257) | 12,590 | ||
Other comprehensive income (loss), before tax | 36,944 | ||||
Other comprehensive income (loss), tax | (8,867) | ||||
Total other comprehensive income (loss), net of tax | 28,077 | ||||
Regulatory adjustment | Southwest Gas Corporation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | 36,944 | ||||
Other comprehensive income (loss), tax | (8,867) | ||||
Total other comprehensive income (loss), net of tax | 28,077 | ||||
FSIRS | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification from AOCI, before Tax | 3,344 | 3,345 | 3,344 | ||
Reclassification from AOCI, tax | (803) | (804) | (1,271) | ||
Reclassification from AOCI, net of tax | 2,541 | 2,541 | 2,073 | ||
Other comprehensive income (loss), before tax | 3,344 | 3,345 | 3,344 | ||
Other comprehensive income (loss), tax | (803) | (804) | (1,271) | ||
Total other comprehensive income (loss), net of tax | 2,541 | 2,541 | 2,073 | ||
FSIRS | Southwest Gas Corporation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification from AOCI, before Tax | 3,344 | ||||
Reclassification from AOCI, tax | (803) | ||||
Reclassification from AOCI, net of tax | 2,541 | ||||
Other comprehensive income (loss), before tax | 3,344 | ||||
Other comprehensive income (loss), tax | (803) | ||||
Total other comprehensive income (loss), net of tax | 2,541 | ||||
Foreign currency items | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss) before reclassifications, before tax | 2,038 | (3,010) | 1,771 | ||
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | 0 | ||
Other comprehensive income (loss) before reclassifications, net of tax | $ 2,038 | $ (3,010) | $ 1,771 |
Other Comprehensive Income an_4
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 21, 2017 | Dec. 31, 2019 | |
Equity [Abstract] | |||||
Effective income tax rate | 20.50% | 25.30% | 25.10% | 38.00% | 24.00% |
Amount of FSIRS existing AOCI losses expected to reclassified income in next twelve months | $ 2.5 | $ 2.5 |
Other Comprehensive Income an_5
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") - Schedule of Estimated Amounts Amortized from Accumulated Other Comprehensive Income or Regulatory Assets into Net Periodic Benefit Cost (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Retirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement plan net actuarial loss | $ 36,000 |
SERP | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement plan net actuarial loss | 1,800 |
PBOP | |
Defined Benefit Plan Disclosure [Line Items] | |
PBOP prior service cost | $ 1,200 |
Other Comprehensive Income an_6
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") - AOCI Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 21, 2017 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 2,251,590 | $ 1,812,403 | |||
Beginning balance, attributable to parent | 2,252,042 | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (51,988) | ||||
Other comprehensive income (loss), before tax | (5,992) | 6,628 | $ 1,208 | ||
Other comprehensive income (loss), tax | 1,928 | (2,314) | (871) | ||
Total other comprehensive income (loss), net of tax | (4,064) | 4,314 | 337 | ||
Ending balance, attributable to parent | 2,505,914 | 2,252,042 | $ 2,505,914 | ||
Ending balance | $ 2,505,914 | $ 2,251,590 | $ 1,812,403 | $ 2,505,914 | |
Effective income tax rate | 20.50% | 25.30% | 25.10% | 38.00% | 24.00% |
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 reclassifications, before tax | (71,087) | ||||
Other comprehensive income (loss) before reclassifications, tax | 17,061 | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (54,026) | ||||
Other comprehensive income (loss), before tax | (11,374) | $ 6,293 | $ (3,907) | ||
Other comprehensive income (loss), tax | 2,731 | (1,510) | 400 | ||
Total other comprehensive income (loss), net of tax | (8,643) | 4,783 | (3,507) | ||
Ending balance, before tax | (66,601) | (55,227) | $ (66,601) | ||
Ending balance, tax | 15,985 | 13,254 | 15,985 | ||
Ending balance | (50,616) | (41,973) | (50,616) | ||
Amortization of prior service cost | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Reclassification from AOCI, before Tax | 1,271 | 1,335 | 1,335 | ||
Reclassification from AOCI, tax | (305) | (320) | (507) | ||
Reclassification from AOCI, net of tax | 966 | 1,015 | 828 | ||
Other comprehensive income (loss), before tax | 1,271 | ||||
Other comprehensive income (loss), tax | (305) | ||||
Total other comprehensive income (loss), net of tax | 966 | ||||
Amortization of net actuarial loss | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Other comprehensive income (loss) before reclassifications, before tax | (71,087) | (20,426) | (43,027) | ||
Other comprehensive income (loss) before reclassifications, tax | 17,061 | 4,902 | 10,326 | ||
Other comprehensive income (loss) before reclassifications, net of tax | (54,026) | (15,524) | (32,701) | ||
Reclassification from AOCI, before Tax | 23,376 | 33,617 | 25,445 | ||
Reclassification from AOCI, tax | (5,610) | (8,068) | (9,669) | ||
Reclassification from AOCI, net of tax | 17,766 | 25,549 | 15,776 | ||
Other comprehensive income (loss), before tax | 23,376 | ||||
Other comprehensive income (loss), tax | (5,610) | ||||
Total other comprehensive income (loss), net of tax | 17,766 | ||||
Prior service cost | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Other comprehensive income (loss) before reclassifications, before tax | (1,878) | 0 | 0 | ||
Other comprehensive income (loss) before reclassifications, tax | 452 | 0 | 0 | ||
Other comprehensive income (loss) before reclassifications, net of tax | (1,426) | 0 | 0 | ||
Other comprehensive income (loss), before tax | (1,878) | ||||
Other comprehensive income (loss), tax | 452 | ||||
Total other comprehensive income (loss), net of tax | (1,426) | ||||
Regulatory adjustment | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Reclassification from AOCI, before Tax | 36,944 | (8,233) | 12,340 | ||
Reclassification from AOCI, tax | (8,867) | 1,976 | 250 | ||
Reclassification from AOCI, net of tax | 28,077 | (6,257) | 12,590 | ||
Other comprehensive income (loss), before tax | 36,944 | ||||
Other comprehensive income (loss), tax | (8,867) | ||||
Total other comprehensive income (loss), net of tax | 28,077 | ||||
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 | 3,344 | 3,345 | 3,344 | ||
Reclassification from AOCI, tax | (803) | (804) | (1,271) | ||
Reclassification from AOCI, net of tax | 2,541 | 2,541 | 2,073 | ||
Other comprehensive income (loss), before tax | 3,344 | 3,345 | 3,344 | ||
Other comprehensive income (loss), tax | (803) | (804) | (1,271) | ||
Total other comprehensive income (loss), net of tax | 2,541 | 2,541 | 2,073 | ||
Ending balance, before tax | (5,966) | (9,310) | (5,966) | ||
Ending balance, tax | 1,431 | 2,234 | 1,431 | ||
Ending balance | (4,535) | (7,076) | (4,535) | ||
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 | 2,038 | ||||
Other comprehensive income (loss) before reclassifications, net of tax | 2,038 | ||||
Ending balance, before tax | (1,581) | (3,619) | (1,581) | ||
Ending balance | (1,581) | (3,619) | (1,581) | ||
AOCI Including Portion Attributable to Noncontrolling Interest | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Other comprehensive income (loss) before reclassifications, net of tax | (4,064) | ||||
AOCI Attributable to Parent | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (52,668) | (47,682) | (48,008) | $ (48,008) | |
Ending balance | (56,732) | (52,668) | (47,682) | (56,732) | |
Southwest Gas Corporation | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 1,782,460 | 1,609,999 | |||
Beginning balance, attributable to parent | 1,782,460 | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (54,026) | ||||
Other comprehensive income (loss), before tax | (8,030) | 9,638 | (563) | ||
Other comprehensive income (loss), tax | 1,928 | (2,314) | (871) | ||
Total other comprehensive income (loss), net of tax | (6,102) | 7,324 | (1,434) | ||
Ending balance, attributable to parent | 2,005,152 | 1,782,460 | 2,005,152 | ||
Ending balance | $ 2,005,152 | $ 1,782,460 | $ 1,609,999 | $ 2,005,152 | |
Effective income tax rate | 17.70% | 24.10% | 28.70% | 24.00% | |
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 reclassifications, before tax | (71,087) | ||||
Other comprehensive income (loss) before reclassifications, tax | 17,061 | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (54,026) | ||||
Other comprehensive income (loss), before tax | (11,374) | ||||
Other comprehensive income (loss), tax | 2,731 | ||||
Total other comprehensive income (loss), net of tax | (8,643) | ||||
Ending balance, attributable to parent, before tax | (66,601) | $ (55,227) | $ (66,601) | ||
Ending balance, attributable to parent, tax | 15,985 | 13,254 | 15,985 | ||
Ending balance, attributable to parent | (50,616) | (41,973) | (50,616) | ||
Southwest Gas Corporation | Amortization of prior service cost | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Other comprehensive income (loss), before tax | 1,271 | ||||
Other comprehensive income (loss), tax | (305) | ||||
Total other comprehensive income (loss), net of tax | 966 | ||||
Southwest Gas Corporation | Amortization of net actuarial loss | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Other comprehensive income (loss), before tax | 23,376 | ||||
Other comprehensive income (loss), tax | (5,610) | ||||
Total other comprehensive income (loss), net of tax | 17,766 | ||||
Southwest Gas Corporation | Prior service cost | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Other comprehensive income (loss), before tax | (1,878) | ||||
Other comprehensive income (loss), tax | 452 | ||||
Total other comprehensive income (loss), net of tax | (1,426) | ||||
Southwest Gas Corporation | Regulatory adjustment | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Other comprehensive income (loss), before tax | 36,944 | ||||
Other comprehensive income (loss), tax | (8,867) | ||||
Total other comprehensive income (loss), net of tax | 28,077 | ||||
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 | 3,344 | ||||
Reclassification from AOCI, tax | (803) | ||||
Reclassification from AOCI, net of tax | 2,541 | ||||
Other comprehensive income (loss), before tax | 3,344 | ||||
Other comprehensive income (loss), tax | (803) | ||||
Total other comprehensive income (loss), net of tax | 2,541 | ||||
Ending balance, attributable to parent, before tax | (5,966) | (9,310) | (5,966) | ||
Ending balance, attributable to parent, tax | 1,431 | 2,234 | 1,431 | ||
Ending balance, attributable to parent | (4,535) | (7,076) | (4,535) | ||
Southwest Gas Corporation | AOCI Attributable to Parent | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (49,049) | (47,073) | $ (45,639) | $ (45,639) | |
Beginning balance, attributable to parent | (49,049) | ||||
Ending balance, attributable to parent | (55,151) | (49,049) | (55,151) | ||
Ending balance | $ (55,151) | $ (49,049) | $ (47,073) | $ (55,151) |
Other Comprehensive Income an_7
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") - Amount Recognized Before Income Tax Associated with Defined Benefit Plans in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Net actuarial loss | $ (483,074) | $ (435,364) |
Prior service cost | (3,641) | (3,033) |
Less: amount recognized in regulatory assets | 420,114 | 383,170 |
Recognized in AOCI | $ (66,601) | $ (55,227) |
Common Stock (Detail)
Common Stock (Detail) - USD ($) | May 08, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 20, 2019 | Sep. 19, 2019 |
Class of Stock [Line Items] | ||||||||
Net proceeds | $ 157,946,000 | $ 354,402,000 | $ 41,155,000 | |||||
Shares registered and available for issuance | 4,200,000 | 4,200,000 | 120,000,000 | 60,000,000 | ||||
Restricted Stock/Unit Plan and Management Incentive Plan | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock issued (in shares) | 77,000 | |||||||
Dividend Reinvestment and Stock Purchase Plan | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock issued (in shares) | 147,000 | |||||||
Common stock issuances | $ 12,000,000 | |||||||
Equity Shelf Program | ||||||||
Class of Stock [Line Items] | ||||||||
Maximum value of common stock issuance | $ 300,000,000 | |||||||
Gross proceeds | $ 124,337,247 | 24,999,876 | ||||||
Less: agent commissions | (1,243,372) | (249,999) | ||||||
Net proceeds | $ 22,842,417 | $ 123,093,875 | $ 24,749,877 | |||||
Number of shares sold (in shares) | 1,478,945 | 331,990 | ||||||
Weighted average price per share (USD per share) | $ 83.05 | $ 84.07 | $ 75.30 | |||||
Common stock available for sale under the program | $ 175,662,753 | $ 175,662,753 | ||||||
Number of common stock sold through public offering (in shares) | 278,000 |
Debt - Schedule of Carrying Amo
Debt - Schedule of Carrying Amounts and Estimated Fair Values of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | May 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Less: current maturities | $ (163,512) | $ (33,060) | |
Long-term debt, less current maturities | 2,300,482 | 2,107,258 | |
Long-term Debt, Current and Noncurrent Abstract | |||
Less: current maturities | (163,512) | (33,060) | |
Long-term debt, less current maturities | 2,300,482 | 2,107,258 | |
Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Less: current maturities | (125,000) | 0 | |
Long-term debt, less current maturities | 1,991,333 | 1,818,669 | |
Long-term Debt, Current and Noncurrent Abstract | |||
Less: current maturities | (125,000) | 0 | |
Long-term debt, less current maturities | $ 1,991,333 | $ 1,818,669 | |
Notes, 6.1%, due 2041 | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 6.10% | ||
Notes, 3.7%, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 300,000 | ||
Notes, 4.15%, due 2049 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 300,000 | ||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 4.15% | ||
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 | Notes, 4.15%, due 2049 | Southwest Gas Corporation | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Debt instrument interest rate | 4.15% | 0.00% | |
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] | |||
Less: current maturities | $ (163,512) | $ (33,060) | |
Long-term debt, less current maturities | 2,300,482 | 2,107,258 | |
Long-term Debt, Current and Noncurrent Abstract | |||
Less: current maturities | (163,512) | (33,060) | |
Long-term debt, less current maturities | 2,300,482 | 2,107,258 | |
Carrying Amount | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Less: current maturities | (125,000) | 0 | |
Long-term debt, less current maturities | 1,991,333 | 1,818,669 | |
Long-term Debt, Current and Noncurrent Abstract | |||
Long-term debt | 2,116,333 | 1,818,669 | |
Less: current maturities | (125,000) | 0 | |
Long-term debt, less current maturities | 1,991,333 | 1,818,669 | |
Carrying Amount | Centuri | |||
Debt Instrument [Line Items] | |||
Less: current maturities | (38,512) | (33,060) | |
Long-term debt, less current maturities | 309,149 | 288,589 | |
Unamortized debt issuance costs | (1,101) | (1,414) | |
Long-term Debt, Current and Noncurrent Abstract | |||
Long-term debt | 347,661 | 321,649 | |
Less: current maturities | (38,512) | (33,060) | |
Long-term debt, less current maturities | 309,149 | 288,589 | |
Centuri term loan/secured revolving credit facility | 243,711 | 254,545 | |
Carrying Amount | Centuri secured revolving credit facility | Centuri | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Centuri term loan/secured revolving credit facility | 60,021 | 0 | |
Carrying Amount | Revolving credit facility and commercial paper | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Line of credit facility | 150,000 | 150,000 | |
Carrying Amount | Centuri term loan facility | Centuri | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Centuri term loan/secured revolving credit facility | 244,812 | 255,959 | |
Carrying Amount | Centuri other debt obligations | Centuri | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Centuri other debt obligations | 43,929 | 67,104 | |
Carrying Amount | Debentures | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 1,768,050 | 1,470,693 | |
Unamortized discount and debt issuance costs | (14,450) | (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 | ||
Carrying Amount | Debentures | Notes, 4.15%, due 2049 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable | 0 | ||
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 | IDRBs | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unamortized discount and debt issuance costs | (1,717) | (2,024) | |
Unsecured debt | 198,283 | 197,976 | |
Carrying Amount | IDRBs | Tax-exempt Series A, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 50,000 | 50,000 | |
Carrying Amount | IDRBs | 2003 Series A, due 2038 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 50,000 | 50,000 | |
Carrying Amount | IDRBs | 2008 Series A, due 2038 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 50,000 | 50,000 | |
Carrying Amount | IDRBs | 2009 Series A, due 2039 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 50,000 | 50,000 | |
Market Value | Centuri secured revolving credit facility | Centuri | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Centuri term loan/secured revolving credit facility | 60,057 | 0 | |
Market Value | 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 | Centuri term loan facility | Centuri | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Centuri term loan/secured revolving credit facility | 252,182 | 260,135 | |
Market Value | Centuri other debt obligations | Centuri | |||
Long-term Debt, Current and Noncurrent Abstract | |||
Centuri other debt obligations | 44,787 | 67,053 | |
Market Value | Debentures | Notes, 4.45%, due 2020 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 126,673 | 126,213 | |
Market Value | Debentures | Notes, 6.1%, due 2041 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 162,666 | 150,728 | |
Market Value | Debentures | Notes, 3.875%, due 2022 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 258,550 | 254,195 | |
Market Value | Debentures | Notes, 4.875%, due 2043 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 291,928 | 268,985 | |
Market Value | Debentures | Notes, 3.8%, due 2046 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 308,307 | 267,030 | |
Market Value | Debentures | Notes, 3.7%, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 320,685 | 298,926 | |
Market Value | Debentures | Notes, 4.15%, due 2049 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 330,138 | 0 | |
Market Value | Debentures | 8% Series, due 2026 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 96,905 | 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 | 27,500 | 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 | 32,543 | 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 | 9,156 | 8,651 | |
Market Value | IDRBs | Tax-exempt Series A, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt, fair value | 50,000 | 50,000 | |
Market Value | IDRBs | 2003 Series A, due 2038 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt, fair value | 50,000 | 50,000 | |
Market Value | IDRBs | 2008 Series A, due 2038 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt, fair value | 50,000 | 50,000 | |
Market Value | IDRBs | 2009 Series A, due 2039 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unsecured debt, fair value | $ 50,000 | $ 50,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | May 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Oct. 31, 2018 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | |||||||||
Debt instrument percentage | 19.00% | ||||||||
Issuance of additional debt | $ 2,400,000,000 | ||||||||
Equity cushion relating to minimum net worth requirement | $ 1,500,000,000 | ||||||||
Percentage of maximum dividend payout restriction | 60.00% | ||||||||
Short term borrowings outstanding | $ 211,000,000 | $ 152,000,000 | |||||||
Southwest Gas Corporation | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument percentage | 13.00% | ||||||||
Short term borrowings outstanding | $ 194,000,000 | 152,000,000 | |||||||
Centuri | |||||||||
Debt Instrument [Line Items] | |||||||||
Issuance of additional debt | 184,000,000 | ||||||||
Equity cushion relating to minimum fixed charge ratio coverage requirement | 53,000,000 | ||||||||
LIBOR | Southwest Gas Corporation | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings outstanding under facility | 294,000,000 | ||||||||
LIBOR | Centuri | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings outstanding under facility | 188,000,000 | ||||||||
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 | ||||||||
Commitment fee percentage | 0.10% | ||||||||
Long-term debt | $ 150,000,000 | ||||||||
Effective interest rates | 2.57% | ||||||||
Minimum current borrowing usage | $ 44,000,000 | ||||||||
Maximum current borrowing usage | $ 366,000,000 | ||||||||
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 | ||||||||
Notes, 4.15%, due 2049 | Southwest Gas Corporation | |||||||||
Debt Instrument [Line Items] | |||||||||
Notes payable | $ 300,000,000 | ||||||||
Debt instrument interest rate | 4.15% | ||||||||
Debt instrument discount rate | 0.051% | ||||||||
Secured Revolving Credit Facility and Term Loan | Centuri | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility maximum borrowing capacity | 590,000,000 | $ 590,000,000 | $ 450,000,000 | ||||||
Borrowings outstanding under facility | $ 305,000,000 | ||||||||
Effective interest rates | 3.20% | ||||||||
Minimum current borrowing usage | $ 6,000,000 | ||||||||
Maximum current borrowing usage | $ 99,000,000 | ||||||||
Debt secured by assets | $ 1,300,000,000 | ||||||||
Secured Revolving Credit Facility and Term Loan | Centuri | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percentage | 0.125% | ||||||||
Secured Revolving Credit Facility and Term Loan | Centuri | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percentage | 0.35% | ||||||||
Secured Revolving Credit Facility and Term Loan | LIBOR | Centuri | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margin | 0.875% | ||||||||
Secured Revolving Credit Facility and Term Loan | LIBOR | Centuri | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margin | 2.25% | ||||||||
Secured Revolving Credit Facility and Term Loan | Alternative Base Rate | Centuri | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margin | 0.00% | ||||||||
Secured Revolving Credit Facility and Term Loan | Alternative Base Rate | Centuri | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margin | 1.25% | ||||||||
Centuri term loan facility | Centuri | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility maximum borrowing capacity | 265,000,000 | ||||||||
Line of Credit | Centuri | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility maximum borrowing capacity | $ 325,000,000 | ||||||||
Notes, 6.1%, due 2041 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument interest rate | 6.10% | ||||||||
$100 Million Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility maximum borrowing capacity | $ 100,000,000 | ||||||||
Commitment fee percentage | 0.15% | ||||||||
$100 Million Credit Facility | Southwest Gas Corporation | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average interest rate | 2.749% | ||||||||
Short term borrowings outstanding | $ 17,000,000 | $ 0 | |||||||
$100 Million Credit Facility | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margin | 1.125% | ||||||||
$100 Million Credit Facility | Alternative Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margin | 0.125% | ||||||||
$400 Million Credit Facility | Southwest Gas Corporation | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility maximum borrowing capacity | $ 400,000,000 | ||||||||
Line of credit designated for working capital purposes | $ 250,000,000 | ||||||||
Weighted average interest rate | 2.61% | 3.47% | |||||||
Short term borrowings outstanding | $ 194,000,000 | $ 152,000,000 |
Debt - Summary of Effective Int
Debt - Summary of Effective Interest Rates on Variable-Rate IDRBs (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
2003 Series A, due 2038 | ||
Debt Instrument [Line Items] | ||
Effective interest rates | 2.51% | 2.61% |
2008 Series A, due 2038 | ||
Debt Instrument [Line Items] | ||
Effective interest rates | 2.46% | 2.52% |
2009 Series A, due 2039 | ||
Debt Instrument [Line Items] | ||
Effective interest rates | 2.37% | 2.51% |
Tax-exempt Series A, due 2028 | ||
Debt Instrument [Line Items] | ||
Effective interest rates | 2.32% | 2.53% |
Debt - Estimated Maturities of
Debt - Estimated Maturities of Long-Term Debt (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 163,512 |
2021 | 33,785 |
2022 | 460,783 |
2023 | 240,681 |
2024 | 0 |
Southwest Gas Corporation | |
Debt Instrument [Line Items] | |
2020 | 125,000 |
2021 | 0 |
2022 | 425,000 |
2023 | 0 |
2024 | 0 |
Centuri | |
Debt Instrument [Line Items] | |
2020 | 38,512 |
2021 | 33,785 |
2022 | 35,783 |
2023 | 240,681 |
2024 | $ 0 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 28, 2019shares | Dec. 31, 2019USD ($)plan$ / sharesshares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock-based compensation plans | plan | 3 | |||
Compensation expense | $ | $ 6,896 | $ 6,111 | $ 10,888 | |
Compensation cost related to nonvested management incentive plan shares, performance shares, and restricted stock/units not yet recognized | $ | $ 3,600 | |||
Compensation cost not yet recognized, period for recognition | 1 year 8 months 12 days | |||
Management Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, granted (in shares) | shares | 0 | |||
Award vesting period | 3 years | |||
Weighted average grant date fair value (in USD per share) | $ / shares | $ 85.44 | |||
Restricted Stock/Unit Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, granted (in shares) | shares | 0 | 108,000 | ||
Weighted average grant date fair value (in USD per share) | $ / shares | $ 81.75 | $ 69.16 | $ 85.39 | |
Restricted Stock/Unit Plan | Vesting Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 40.00% | |||
Restricted Stock/Unit Plan | Vesting Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 30.00% | |||
Restricted Stock/Unit Plan | Vesting Tranche Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 30.00% | |||
Restricted Stock/Unit Plan | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance measurement period | 3 years | |||
Compensation expense | $ | $ 2,300 | $ 2,100 | $ 1,200 | |
Number of shares, granted (in shares) | shares | 57,500 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Plan Compensation Expense, Including Cash Award (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Share-based compensation plan expense, net of related tax benefits | $ 5,154 | $ 4,644 | $ 6,751 |
Share-based compensation plan related tax benefits | $ 1,627 | $ 1,467 | $ 4,137 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Nonvested Performance and Restricted Stock Unit Plans (Details) - $ / shares | 2 Months Ended | 12 Months Ended | ||
Feb. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Management Incentive Plan | ||||
Number of nonvested/unissued shares | ||||
Nonvested/unissued at beginning of year (in shares) | 65,000 | 65,000 | ||
Granted (in shares) | 0 | |||
Dividends (in shares) | 1,000 | |||
Forfeited or expired (in shares) | 0 | |||
Vested and issued (in shares) | (37,000) | |||
Nonvested/unissued at year end (in shares) | 29,000 | 65,000 | ||
Weighted- average grant date fair value | ||||
Beginning balance (in USD per share) | $ 66.51 | $ 66.51 | ||
Granted (in USD per share) | $ 85.44 | |||
Forfeited or expired (in USD per share) | 0 | |||
Vested and issued (in USD per share) | 55.31 | |||
Ending balance (in USD per share) | $ 79.16 | $ 66.51 | ||
Restricted Stock/Unit Plan | ||||
Number of nonvested/unissued shares | ||||
Nonvested/unissued at beginning of year (in shares) | 323,000 | 323,000 | ||
Granted (in shares) | 0 | 108,000 | ||
Dividends (in shares) | 7,000 | |||
Forfeited or expired (in shares) | (9,000) | |||
Vested and issued (in shares) | (64,000) | |||
Nonvested/unissued at year end (in shares) | 365,000 | 323,000 | ||
Weighted- average grant date fair value | ||||
Beginning balance (in USD per share) | $ 56.16 | $ 56.16 | ||
Granted (in USD per share) | 81.75 | $ 69.16 | $ 85.39 | |
Forfeited or expired (in USD per share) | 77.80 | |||
Vested and issued (in USD per share) | 63.21 | |||
Ending balance (in USD per share) | $ 60.94 | $ 56.16 | ||
Restricted Stock/Unit Plan | Performance Shares | ||||
Number of nonvested/unissued shares | ||||
Granted (in shares) | 57,500 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Dec. 31, 2019USD ($) |
Southwest Gas Corporation | |
Loss Contingencies [Line Items] | |
Self-insured retention amount associated with general liability claims | $ 1,000,000 |
Additional self-insured retention amount of general liability | 4,000,000 |
Centuri | |
Loss Contingencies [Line Items] | |
Self-insured retention amount associated with general liability claims | $ 400,000 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2020USD ($) | Dec. 31, 2019USD ($)plan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Maximum contribution of employer | 3.50% | |||
Employee investment plan cost | $ 5,700,000 | $ 5,500,000 | $ 5,100,000 | |
Deferment of annual cash compensation | 100.00% | |||
Matching contribution of employer | 3.50% | |||
Period of additional option to receive payment | 5 years | |||
Deferred compensation, percentage of multiple interest rate | 150.00% | |||
Increments of change to the discount rate | 0.25% | |||
Decrease of discount rate | 1.00% | |||
Decrease of asset return assumption | 0.25% | |||
Future estimated funding amount | $ 105,000,000 | |||
Deferred compensation plan, maximum percentage of salary deferral | 80.00% | |||
Deferred compensation plan, matching percentage | 100.00% | |||
Deferred compensation plan, maximum percentage of salary with matching | 5.00% | |||
Deferred compensation plan, vesting percentage of deferral | 100.00% | |||
Special surcharges | $ 0 | |||
Number of critical multiemployer plan | plan | 2 | |||
Centuri | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plans, employer contribution amount | $ 8,000,000 | 7,000,000 | 6,300,000 | |
Subsequent Event | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plans, employer contribution amount | $ 50,000,000 | |||
Qualified Retirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Future estimated funding amount | $ 102,000,000 | |||
PBOP | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Per capita cost of covered health care benefits medical rate trend assumption | 6.00% | |||
PBOP | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Per capita cost of covered health care benefits medical rate trend assumption | 4.50% | |||
Multiemployer Plans, Pension | Centuri | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Multiemployer plan, contributions by employer | $ 41,300,000 | $ 38,200,000 | $ 35,200,000 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Schedule of Assumptions Used (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Discount rate | 3.50% | 4.50% |
Weighted-average rate of compensation increase | 3.25% | 3.25% |
Asset return assumption | 6.75% | 7.00% |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Schedule of Amounts Recognized in Balance Sheet and Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in plan assets: | |||
Market value of plan assets at beginning of year | $ 837,955 | ||
Market value of plan assets at end of year | 1,027,831 | $ 837,955 | |
Qualified Retirement Plan | |||
Change in benefit obligations: | |||
Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) | 1,116,014 | 1,203,484 | |
Service cost | 25,864 | 28,555 | $ 23,392 |
Interest cost | 49,006 | 44,174 | 46,083 |
Plan amendments | 0 | 0 | |
Actuarial loss (gain) | 192,416 | (102,919) | |
Benefits paid | (53,723) | (57,280) | |
Benefit obligation at end of year (PBO/PBO/APBO) | 1,329,577 | 1,116,014 | 1,203,484 |
Change in plan assets: | |||
Market value of plan assets at beginning of year | 790,614 | 871,665 | |
Actual return on plan assets | 186,102 | (67,771) | |
Employer contributions | 52,000 | 44,000 | |
Benefits paid | (53,723) | (57,280) | |
Market value of plan assets at end of year | 974,993 | 790,614 | 871,665 |
Funded status at year end | $ (354,584) | $ (325,400) | |
Weighted-average assumptions (benefit obligation): | |||
Discount rate | 3.50% | 4.50% | |
Weighted-average rate of compensation increase | 3.25% | 3.25% | |
SERP | |||
Change in benefit obligations: | |||
Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) | $ 40,603 | $ 45,727 | |
Service cost | 266 | 245 | 309 |
Interest cost | 1,760 | 1,658 | 1,883 |
Plan amendments | 0 | 0 | |
Actuarial loss (gain) | 7,974 | (3,940) | |
Benefits paid | (3,206) | (3,087) | |
Benefit obligation at end of year (PBO/PBO/APBO) | 47,397 | 40,603 | 45,727 |
Change in plan assets: | |||
Market value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 3,206 | 3,087 | |
Benefits paid | (3,206) | (3,087) | |
Market value of plan assets at end of year | 0 | 0 | 0 |
Funded status at year end | $ (47,397) | $ (40,603) | |
Weighted-average assumptions (benefit obligation): | |||
Discount rate | 3.50% | 4.50% | |
Weighted-average rate of compensation increase | 3.25% | 3.25% | |
PBOP | |||
Change in benefit obligations: | |||
Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) | $ 69,956 | $ 75,322 | |
Service cost | 1,276 | 1,473 | 1,468 |
Interest cost | 3,046 | 2,748 | 3,232 |
Plan amendments | 1,878 | 0 | |
Actuarial loss (gain) | 3,156 | (6,020) | |
Benefits paid | (3,201) | (3,567) | |
Benefit obligation at end of year (PBO/PBO/APBO) | 76,111 | 69,956 | 75,322 |
Change in plan assets: | |||
Market value of plan assets at beginning of year | 47,341 | 54,608 | |
Actual return on plan assets | 9,757 | (3,061) | |
Employer contributions | 0 | 0 | |
Benefits paid | (4,260) | (4,206) | |
Market value of plan assets at end of year | 52,838 | 47,341 | $ 54,608 |
Funded status at year end | $ (23,273) | $ (22,615) | |
Weighted-average assumptions (benefit obligation): | |||
Discount rate | 3.50% | 4.50% |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Schedule of Accumulated Benefit Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 1,219,989 | $ 1,024,030 |
SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 46,067 | $ 38,793 |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Schedule of Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 56 |
2021 | 58 |
2022 | 59 |
2023 | 60 |
2024 | 61 |
2025-2029 | 331 |
SERP | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 3.1 |
2021 | 3.1 |
2022 | 3.1 |
2023 | 3.1 |
2024 | 3.1 |
2025-2029 | 14.8 |
PBOP | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 4.9 |
2021 | 4.9 |
2022 | 4.9 |
2023 | 4.9 |
2024 | 4.8 |
2025-2029 | $ 22.5 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Schedule of New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Operations and maintenance | $ 424,150 | $ 406,393 | $ 392,763 |
Other income (deductions) | 10,085 | (17,426) | (6,030) |
Southwest Gas Corporation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Operations and maintenance | 422,174 | 404,813 | 391,321 |
Other income (deductions) | $ 9,517 | $ (17,240) | (6,388) |
Originally Reported | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Operations and maintenance | 412,187 | ||
Other income (deductions) | 13,394 | ||
Originally Reported | Southwest Gas Corporation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Operations and maintenance | 410,745 | ||
Other income (deductions) | 13,036 | ||
Reclassification | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Operations and maintenance | (19,424) | ||
Other income (deductions) | (19,424) | ||
Reclassification | Southwest Gas Corporation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Operations and maintenance | (19,424) | ||
Other income (deductions) | $ (19,424) |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Schedule of Net Periodic Benefit Cost and Weighted-Average Assumptions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | $ 42,465 | $ 51,332 | $ 44,593 |
Weighted-average assumptions (net benefit cost) | |||
Discount rate | 3.50% | 4.50% | |
Expected return on plan assets | 6.75% | 7.00% | |
Weighted-average rate of compensation increase | 3.25% | 3.25% | |
Qualified Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 25,864 | $ 28,555 | 23,392 |
Interest cost | 49,006 | 44,174 | 46,083 |
Expected return on plan assets | (60,244) | (58,755) | (55,196) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net actuarial loss | 22,356 | 32,115 | 24,004 |
Net periodic benefit cost | $ 36,982 | $ 46,089 | $ 38,283 |
Weighted-average assumptions (net benefit cost) | |||
Discount rate | 4.50% | 3.75% | 4.50% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Weighted-average rate of compensation increase | 3.25% | 3.25% | 3.25% |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 266 | $ 245 | $ 309 |
Interest cost | 1,760 | 1,658 | 1,883 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net actuarial loss | 1,020 | 1,502 | 1,441 |
Net periodic benefit cost | $ 3,046 | $ 3,405 | $ 3,633 |
Weighted-average assumptions (net benefit cost) | |||
Discount rate | 4.50% | 3.75% | 4.50% |
Weighted-average rate of compensation increase | 3.25% | 3.25% | 3.25% |
PBOP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1,276 | $ 1,473 | $ 1,468 |
Interest cost | 3,046 | 2,748 | 3,232 |
Expected return on plan assets | (3,156) | (3,718) | (3,358) |
Amortization of prior service cost | 1,271 | 1,335 | 1,335 |
Amortization of net actuarial loss | 0 | 0 | 0 |
Net periodic benefit cost | $ 2,437 | $ 1,838 | $ 2,677 |
Weighted-average assumptions (net benefit cost) | |||
Discount rate | 4.50% | 3.75% | 4.50% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ 71,087 | $ 20,426 | $ 43,027 |
Amortization of prior service cost | (1,271) | (1,335) | (1,335) |
Amortization of net actuarial loss | (23,376) | (33,617) | (25,445) |
Prior service cost | 1,878 | 0 | 0 |
Regulatory adjustment | (36,944) | 8,233 | (12,340) |
Recognized in other comprehensive (income) loss | 11,374 | (6,293) | 3,907 |
Net periodic benefit costs recognized in net income | 42,465 | 51,332 | 44,593 |
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss | 53,839 | 45,039 | 48,500 |
Qualified Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 66,557 | 23,607 | 44,149 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net actuarial loss | (22,356) | (32,115) | (24,004) |
Prior service cost | 0 | 0 | 0 |
Regulatory adjustment | (39,782) | 7,657 | (18,131) |
Recognized in other comprehensive (income) loss | 4,419 | (851) | 2,014 |
Net periodic benefit costs recognized in net income | 36,982 | 46,089 | 38,283 |
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss | 41,401 | 45,238 | 40,297 |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 7,975 | (3,940) | 3,334 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net actuarial loss | (1,020) | (1,502) | (1,441) |
Prior service cost | 0 | 0 | 0 |
Regulatory adjustment | 0 | 0 | 0 |
Recognized in other comprehensive (income) loss | 6,955 | (5,442) | 1,893 |
Net periodic benefit costs recognized in net income | 3,046 | 3,405 | 3,633 |
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss | 10,001 | (2,037) | 5,526 |
PBOP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | (3,445) | 759 | (4,456) |
Amortization of prior service cost | (1,271) | (1,335) | (1,335) |
Amortization of net actuarial loss | 0 | 0 | 0 |
Prior service cost | 1,878 | 0 | 0 |
Regulatory adjustment | 2,838 | 576 | 5,791 |
Recognized in other comprehensive (income) loss | 0 | 0 | 0 |
Net periodic benefit costs recognized in net income | 2,437 | 1,838 | 2,677 |
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss | $ 2,437 | $ 1,838 | $ 2,677 |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Schedule of Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 1,027,831 | $ 837,955 | |
Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1,025,095 | 835,019 | |
Level 1 – Quoted prices in active markets for identical financial assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 29,188 | 25,299 | |
Level 1 – Quoted prices in active markets for identical financial assets | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 29,188 | 25,299 | |
Level 2 – Significant other observable inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 995,907 | 809,720 | |
Level 2 – Significant other observable inputs | Global | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 273,246 | 221,176 | |
Level 2 – Significant other observable inputs | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 119,866 | 97,053 | |
Level 2 – Significant other observable inputs | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 189,028 | 151,738 | |
Level 2 – Significant other observable inputs | Emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 64,437 | 52,209 | |
Level 2 – Significant other observable inputs | Private commingled fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 343,097 | 281,568 | |
Level 2 – Significant other observable inputs | Pooled funds and mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 6,048 | 5,808 | |
Level 2 – Significant other observable inputs | Government fixed income and mortgage backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 185 | 168 | |
Insurance company general account contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 2,736 | 2,936 | |
Qualified Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 974,993 | 790,614 | $ 871,665 |
Qualified Retirement Plan | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 972,257 | 787,678 | |
Qualified Retirement Plan | Level 1 – Quoted prices in active markets for identical financial assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Qualified Retirement Plan | Level 1 – Quoted prices in active markets for identical financial assets | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 972,257 | 787,678 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | Global | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 266,908 | 215,280 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 117,086 | 94,465 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 184,642 | 147,693 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | Emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 62,943 | 50,817 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | Private commingled fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 335,138 | 274,062 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | Pooled funds and mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 5,359 | 5,198 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | Government fixed income and mortgage backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 181 | 163 | |
Qualified Retirement Plan | Insurance company general account contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 2,736 | 2,936 | |
PBOP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 52,838 | 47,341 | $ 54,608 |
PBOP | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 52,838 | 47,341 | |
PBOP | Level 1 – Quoted prices in active markets for identical financial assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 29,188 | 25,299 | |
PBOP | Level 1 – Quoted prices in active markets for identical financial assets | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 29,188 | 25,299 | |
PBOP | Level 2 – Significant other observable inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 23,650 | 22,042 | |
PBOP | Level 2 – Significant other observable inputs | Global | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 6,338 | 5,896 | |
PBOP | Level 2 – Significant other observable inputs | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 2,780 | 2,588 | |
PBOP | Level 2 – Significant other observable inputs | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 4,386 | 4,045 | |
PBOP | Level 2 – Significant other observable inputs | Emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1,494 | 1,392 | |
PBOP | Level 2 – Significant other observable inputs | Private commingled fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 7,959 | 7,506 | |
PBOP | Level 2 – Significant other observable inputs | Pooled funds and mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 689 | 610 | |
PBOP | Level 2 – Significant other observable inputs | Government fixed income and mortgage backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 4 | 5 | |
PBOP | Insurance company general account contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 0 | $ 0 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Before Taxes and Noncontrolling Interest for Domestic and Foreign Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 261,525 | $ 235,120 | $ 246,131 |
Foreign | 11,145 | 8,216 | 12,899 |
Total income before income taxes | $ 272,670 | $ 243,336 | $ 259,030 |
Income Taxes - Summary of Inc_2
Income Taxes - Summary of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 622 | $ (13,476) | $ (1,316) |
State | (1,510) | (3,219) | 2,965 |
Foreign | 5,013 | 2,563 | 5,203 |
Total current income tax expense | 4,125 | (14,132) | 6,852 |
Deferred: | |||
Federal | 45,593 | 67,784 | 58,443 |
State | 8,212 | 8,901 | 1,837 |
Foreign | (1,907) | (869) | (2,044) |
Total deferred income tax expense | 51,898 | 75,816 | 58,236 |
Total income tax expense | 56,023 | 61,684 | 65,088 |
Southwest Gas Corporation | |||
Current: | |||
Federal | 4,109 | (17,584) | 318 |
State | 250 | (6,783) | 1,420 |
Total current income tax expense | 4,359 | (24,367) | 1,738 |
Deferred: | |||
Federal | 29,543 | 58,136 | 60,662 |
State | 1,071 | 10,222 | 735 |
Total deferred income tax expense | 30,614 | 68,358 | 61,397 |
Total income tax expense | $ 34,973 | $ 43,991 | $ 63,135 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred federal and state: | |||
Total deferred federal and state | $ 52,144 | $ 76,429 | $ 58,965 |
Deferred ITC, net | (246) | (613) | (729) |
Total deferred income tax expense | 51,898 | 75,816 | 58,236 |
Property-related items | |||
Deferred federal and state: | |||
Total deferred federal and state | 60,449 | 94,899 | 44,516 |
Purchased gas cost adjustments | |||
Deferred federal and state: | |||
Total deferred federal and state | 3,834 | (3,507) | 8,500 |
Employee benefits | |||
Deferred federal and state: | |||
Total deferred federal and state | 7,680 | (7,334) | (2,517) |
Regulatory adjustments | |||
Deferred federal and state: | |||
Total deferred federal and state | (11,962) | 2,412 | 14,401 |
All other deferred | |||
Deferred federal and state: | |||
Total deferred federal and state | (7,857) | (10,041) | (5,935) |
Southwest Gas Corporation | |||
Deferred federal and state: | |||
Total deferred federal and state | 30,860 | 68,971 | 62,126 |
Deferred ITC, net | (246) | (613) | (729) |
Total deferred income tax expense | 30,614 | 68,358 | 61,397 |
Southwest Gas Corporation | Property-related items | |||
Deferred federal and state: | |||
Total deferred federal and state | 34,398 | 67,576 | 49,129 |
Southwest Gas Corporation | Purchased gas cost adjustments | |||
Deferred federal and state: | |||
Total deferred federal and state | 3,834 | (3,507) | 8,500 |
Southwest Gas Corporation | Employee benefits | |||
Deferred federal and state: | |||
Total deferred federal and state | 6,493 | 2,156 | (5,707) |
Southwest Gas Corporation | Regulatory adjustments | |||
Deferred federal and state: | |||
Total deferred federal and state | (11,962) | 2,412 | 14,401 |
Southwest Gas Corporation | All other deferred | |||
Deferred federal and state: | |||
Total deferred federal and state | $ (1,903) | $ 334 | $ (4,197) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S Federal Statutory Rate to Consolidated Effective Tax Rate (Details) | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 21, 2017 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 35.00% | ||
Net state taxes | 2.10% | 2.90% | 1.10% | ||
Tax credits | (0.30%) | (0.30%) | (0.40%) | ||
Company-owned life insurance | (1.50%) | 0.10% | (1.60%) | ||
Change in U.S. Federal Income Tax Rate | 0.00% | 0.00% | (7.80%) | ||
Amortization of excess deferred taxes | (0.90%) | 0.00% | 0.00% | ||
All other differences | 0.10% | 1.60% | (1.20%) | ||
Consolidated effective income tax rate | 20.50% | 25.30% | 25.10% | 38.00% | 24.00% |
Southwest Gas Corporation | |||||
Income Taxes [Line Items] | |||||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 35.00% | ||
Net state taxes | 0.70% | 2.10% | 0.60% | ||
Tax credits | (0.40%) | (0.40%) | (0.40%) | ||
Company-owned life insurance | (1.90%) | 0.30% | (1.70%) | ||
Change in U.S. Federal Income Tax Rate | 0.00% | 0.00% | (3.60%) | ||
Amortization of excess deferred taxes | (1.20%) | 0.00% | 0.00% | ||
All other differences | (0.50%) | 1.10% | (1.20%) | ||
Consolidated effective income tax rate | 17.70% | 24.10% | 28.70% | 24.00% |
Income Taxes - Summary of Inc_3
Income Taxes - Summary of Income Before Taxes for Continuing and Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Southwest Gas Corporation | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total income before income taxes | $ 198,144 | $ 182,833 | $ 219,953 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits at beginning of year | $ 971 | $ 1,430 |
Gross increases – tax positions in prior period | 85 | 0 |
Gross decreases – tax positions in prior period | 0 | 459 |
Gross increases – current period tax positions | 0 | 0 |
Gross decreases – current period tax positions | 0 | 0 |
Settlements | 0 | 0 |
Lapse in statute of limitations | 0 | 0 |
Unrecognized tax benefits at end of year | 1,056 | 971 |
Southwest Gas Corporation | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits at beginning of year | 971 | 1,069 |
Gross increases – tax positions in prior period | 85 | 0 |
Gross decreases – tax positions in prior period | 0 | 98 |
Gross increases – current period tax positions | 0 | 0 |
Gross decreases – current period tax positions | 0 | 0 |
Settlements | 0 | 0 |
Lapse in statute of limitations | 0 | 0 |
Unrecognized tax benefits at end of year | $ 1,056 | $ 971 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Deferred income taxes for future amortization of ITC and excess deferred taxes | $ 105,077 | $ 105,791 |
Employee benefits | 37,439 | 39,215 |
Alternative minimum tax credit | 4,409 | 21,603 |
Federal net operating losses | 7,467 | 13,125 |
Interest rate swap | 1,432 | 2,235 |
Lease-related item | 21,226 | 0 |
Other | 20,104 | 21,191 |
Valuation allowance | (25) | (1,132) |
Deferred tax assets, total | 197,129 | 202,028 |
Deferred tax liabilities: | ||
Property-related items, including accelerated depreciation | 732,798 | 678,307 |
Regulatory balancing accounts | 9,931 | 6,097 |
Unamortized ITC | 122 | 368 |
Debt-related costs | 2,818 | 3,110 |
Intangibles | 10,611 | 7,807 |
Lease-related item | 20,386 | 0 |
Other | 19,447 | 34,276 |
Deferred tax liabilities, total | 796,113 | 729,965 |
Net deferred tax liabilities | 598,984 | 527,937 |
Southwest Gas Corporation | ||
Deferred tax assets: | ||
Deferred income taxes for future amortization of ITC and excess deferred taxes | 105,077 | 105,791 |
Employee benefits | 13,574 | 17,337 |
Alternative minimum tax credit | 4,409 | 21,603 |
Federal net operating losses | 0 | 4,557 |
Interest rate swap | 1,432 | 2,235 |
Other | 10,761 | 13,362 |
Valuation allowance | (25) | (37) |
Deferred tax assets, total | 135,228 | 164,848 |
Deferred tax liabilities: | ||
Property-related items, including accelerated depreciation | 644,046 | 614,205 |
Regulatory balancing accounts | 9,931 | 6,097 |
Unamortized ITC | 122 | 368 |
Debt-related costs | 2,818 | 3,110 |
Other | 17,361 | 31,526 |
Deferred tax liabilities, total | 674,278 | 655,306 |
Net deferred tax liabilities | $ 539,050 | $ 490,458 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | |||
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ 1,000,000 | ||
Regulatory liability related to TCJA | 453,000,000 | ||
Tax credit carryforward | 6,000,000 | ||
Capital Loss Carryforward | |||
Income Tax Disclosure [Line Items] | |||
Tax credit carryforward | 107,000 | ||
Canada | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforward | 5,600,000 | ||
Southwest Gas Corporation | |||
Income Tax Disclosure [Line Items] | |||
Significant increases or decreases in unrecognized tax benefit within the next 12 months | 0 | ||
Tax-related interest income | 0 | $ 0 | $ 0 |
Federal | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforward | $ 36,000,000 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) | Dec. 31, 2019USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative collateral outstanding | $ 0 |
Derivatives - Notional Amounts
Derivatives - Notional Amounts under Swaps Contracts (Details) - MMBTU MMBTU in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Contract notional amounts | 11,965 | 13,387 |
Derivatives - Paid to and Recei
Derivatives - Paid to and Received from Counterparties for Settlements of Matured Swaps (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Paid to counterparties | $ 10,438 | $ 6,781 | $ 3,100 |
Received from counterparties | $ 1,352 | $ 606 | $ 1,685 |
Derivatives - Fair Values of Sw
Derivatives - Fair Values of Swaps in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 3 | $ 1,979 |
Liability Derivatives | (10,954) | (3,697) |
Net Total | (10,951) | (1,718) |
Swaps | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 243 | |
Liability Derivatives | (99) | |
Net Total | 144 | |
Swaps | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 3 | 1,595 |
Liability Derivatives | (10,954) | (3,347) |
Net Total | $ (10,951) | (1,752) |
Swaps | Other deferred credits | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 141 | |
Liability Derivatives | (251) | |
Net Total | $ (110) |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 2 |
Net Assets, Geographic Area | Geographic Concentration Risk | United States | Minimum | |
Segment Reporting Information [Line Items] | |
Long-lived assets | 99.00% |
Segment Information - Accounts
Segment Information - Accounts Receivable for Services (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Centuri | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable for Centuri services | $ 15,235 | $ 18,830 |
Segment Information - Schedule
Segment Information - Schedule of Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | $ 848,137 | $ 725,230 | $ 713,011 | $ 833,539 | $ 786,654 | $ 668,146 | $ 670,883 | $ 754,330 | $ 3,119,917 | $ 2,880,013 | $ 2,548,792 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 2,893,201 | 2,664,670 | 2,345,134 | ||||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | $ 226,716 | $ 215,343 | $ 203,658 |
Segment Information - Schedul_2
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 3,119,917 | $ 2,880,013 | $ 2,548,792 | ||||||||
Interest income | 6,356 | 6,108 | 2,787 | ||||||||
Interest expense | 109,226 | 96,671 | 78,064 | ||||||||
Depreciation and amortization | 303,237 | 249,212 | 250,951 | ||||||||
Income tax expense | 56,023 | 61,684 | 65,088 | ||||||||
Segment net income | $ 91,718 | $ 5,353 | $ 22,056 | $ 94,809 | $ 69,304 | $ 12,331 | $ 21,551 | $ 79,091 | 213,936 | 182,277 | 193,841 |
Segment assets | 8,170,048 | 7,357,729 | 8,170,048 | 7,357,729 | 6,237,066 | ||||||
Capital expenditures | 938,148 | 765,914 | 623,649 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,961,191 | 2,744,099 | 2,451,633 | ||||||||
Intersegment sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 158,726 | 135,914 | 97,159 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 114 | 741 | 345 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Income tax expense | (349) | (727) | (437) | ||||||||
Segment net income | (1,639) | (1,542) | (1,337) | ||||||||
Segment assets | 6,108 | 572 | 6,108 | 572 | 1,901 | ||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Natural Gas Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,368,939 | 1,357,728 | 1,302,308 | ||||||||
Interest income | 6,356 | 6,020 | 2,784 | ||||||||
Interest expense | 95,026 | 81,740 | 69,733 | ||||||||
Depreciation and amortization | 215,620 | 191,816 | 201,922 | ||||||||
Income tax expense | 34,973 | 43,991 | 63,135 | ||||||||
Segment net income | 163,171 | 138,842 | 156,818 | ||||||||
Segment assets | 6,798,746 | 6,141,584 | 6,798,746 | 6,141,584 | 5,482,669 | ||||||
Capital expenditures | 778,748 | 682,869 | 560,448 | ||||||||
Natural Gas Operations | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,368,939 | 1,357,728 | 1,302,308 | ||||||||
Natural Gas Operations | Intersegment sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Utility Infrastructure Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,750,978 | 1,522,285 | 1,246,484 | ||||||||
Interest income | 0 | 88 | 3 | ||||||||
Interest expense | 14,086 | 14,190 | 7,986 | ||||||||
Depreciation and amortization | 87,617 | 57,396 | 49,029 | ||||||||
Income tax expense | 21,399 | 18,420 | 2,390 | ||||||||
Segment net income | 52,404 | 44,977 | 38,360 | ||||||||
Segment assets | $ 1,365,194 | $ 1,215,573 | 1,365,194 | 1,215,573 | 752,496 | ||||||
Capital expenditures | 159,400 | 83,045 | 63,201 | ||||||||
Utility Infrastructure Services | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,592,252 | 1,386,371 | 1,149,325 | ||||||||
Utility Infrastructure Services | Intersegment sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 158,726 | $ 135,914 | $ 97,159 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Quarterly Financial Information [Line Items] | |||||||||||
Operating revenues | $ 848,137 | $ 725,230 | $ 713,011 | $ 833,539 | $ 786,654 | $ 668,146 | $ 670,883 | $ 754,330 | $ 3,119,917 | $ 2,880,013 | $ 2,548,792 |
Operating income (loss) | 138,204 | 38,258 | 54,869 | 140,480 | 134,854 | 39,681 | 53,338 | 129,560 | 371,811 | 357,433 | 343,124 |
Net income (loss) | 91,906 | 6,525 | 22,832 | 95,384 | 69,476 | 12,331 | 21,551 | 78,294 | 216,647 | 181,652 | 193,942 |
Net income attributable to Southwest Gas Holdings, Inc. | $ 91,718 | $ 5,353 | $ 22,056 | $ 94,809 | $ 69,304 | $ 12,331 | $ 21,551 | $ 79,091 | $ 213,936 | $ 182,277 | $ 193,841 |
Basic earnings per common share (in USD per share) | $ 1.67 | $ 0.10 | $ 0.41 | $ 1.78 | $ 1.36 | $ 0.25 | $ 0.44 | $ 1.63 | $ 3.94 | $ 3.69 | $ 4.04 |
Diluted earnings per common share (in USD per share) | $ 1.67 | $ 0.10 | $ 0.41 | $ 1.77 | $ 1.36 | $ 0.25 | $ 0.44 | $ 1.63 | $ 3.94 | $ 3.68 | $ 4.04 |
Southwest Gas Corporation | |||||||||||
Schedule Of Quarterly Financial Information [Line Items] | |||||||||||
Operating revenues | $ 379,571 | $ 209,980 | $ 258,711 | $ 520,677 | $ 370,213 | $ 217,523 | $ 275,679 | $ 494,313 | |||
Operating income (loss) | 112,678 | (1,807) | 24,069 | 148,713 | 115,962 | 3 | 24,675 | 141,173 | $ 283,653 | $ 281,813 | $ 296,074 |
Net income (loss) | $ 76,425 | $ (20,012) | $ 3,369 | $ 103,389 | $ 59,541 | $ (13,670) | $ 2,622 | $ 90,349 | $ 163,171 | $ 138,842 | $ 156,818 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interest - Additional Information (Details) | Dec. 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 Interest- Summary of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement In Redeemable Noncontrolling Interest [Roll Forward] | ||
Balance, Beginning | $ 81,831 | $ 0 |
Redeemable noncontrolling interest acquired | 81,659 | |
Net income attributable to redeemable noncontrolling interest | (2,711) | (172) |
Balance, Ending | $ 84,542 | $ 81,831 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) - USD ($) | Nov. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Oct. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||
Payments to acquisition | $ 47,600,000 | |||||
Remaining unpaid consideration | 4,700,000 | |||||
Goodwill | 343,023,000 | $ 359,045,000 | $ 343,023,000 | $ 179,314,000 | ||
Linetec | ||||||
Business Acquisition [Line Items] | ||||||
Net consideration of acquisition less assumed debt | $ 326,600,000 | 303,400,000 | 303,400,000 | |||
Goodwill | 188,500,000 | 167,300,000 | 167,300,000 | |||
Acquired intangible assets | $ 89,300,000 | 89,300,000 | 89,300,000 | |||
Acquired intangible assets, weighted average useful life | 19 years | |||||
Acquisition costs | 6,900,000 | |||||
Linetec | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets | $ 79,000,000 | |||||
Acquired intangible assets, weighted average useful life | 20 years | |||||
Linetec | Trade Names | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets | $ 10,000,000 | |||||
Acquired intangible assets, weighted average useful life | 15 years | |||||
Linetec | Customer Contracts | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets | $ 300,000 | |||||
Acquired intangible assets, weighted average useful life | 1 year | |||||
Centuri | Linetec | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of voting interests acquired | 80.00% | |||||
Remaining unpaid consideration | $ 75,600,000 | |||||
Measurement period adjustments | (23,200,000) | |||||
Linetec | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage by noncontrolling owners | 20.00% | |||||
Secured Revolving Credit Facility and Term Loan | Centuri | ||||||
Business Acquisition [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 590,000,000 | $ 590,000,000 | $ 590,000,000 | $ 450,000,000 |
Business Acquisitions - Summary
Business Acquisitions - Summary of Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 13 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 343,023 | $ 359,045 | $ 179,314 | |
Linetec | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 3,900 | $ 3,900 | ||
Accounts receivable | 32,300 | 32,800 | ||
Revenue earned on contracts in progress in excess of billings | 22,500 | 21,600 | ||
Prepaid expenses and other current assets | 1,200 | 1,100 | ||
Property and equipment | 88,400 | 89,400 | ||
Intangible assets | 89,300 | 89,300 | ||
Goodwill | 167,300 | 188,500 | ||
Total assets acquired | 404,900 | 426,600 | ||
Accounts payable | 8,000 | 8,000 | ||
Accrued liabilities | 8,400 | 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 | 101,500 | 100,000 | ||
Net assets acquired | 303,400 | $ 326,600 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||
Accounts receivable, measurement period adjustments | (500) | |||
Revenue earned on contracts in progress in excess of billings, measurement period adjustments | 900 | |||
Prepaid expenses and other current assets, measurement period adjustments | 100 | |||
Property and equipment, measurement period adjustments | (1,000) | |||
Intangible assets, measurement period adjustments | 0 | |||
Goodwill, measurement period adjustments | (21,200) | |||
Total assets acquired, measurement period adjustments | (21,700) | |||
Accrued liabilities, measurement period adjustments | 1,500 | |||
Total liabilities assumed and noncontrolling interest, measurement period adjustments | $ 1,500 |
Business Acquisitions - Schedul
Business Acquisitions - Schedule of Pro Forma Consolidated Financial Information (Details) - Linetec - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Total operating revenues | $ 3,037,209 | $ 2,626,721 |
Net income attributable to Southwest Gas Holdings, Inc. | $ 187,642 | $ 192,368 |
Basic earnings per share (in USD per Share) | $ 3.80 | $ 4.01 |
Diluted earnings per share (in USD per Share) | $ 3.79 | $ 4.01 |
Business Acquisitions - Sched_2
Business Acquisitions - Schedule of Statements of Income Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Utility infrastructure services revenues | $ 1,750,978 | $ 1,522,285 | $ 1,246,484 | ||||||||
Net income attributable to Southwest Gas Holdings, Inc. | $ 91,718 | $ 5,353 | $ 22,056 | $ 94,809 | $ 69,304 | $ 12,331 | $ 21,551 | $ 79,091 | 213,936 | 182,277 | $ 193,841 |
Linetec | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Utility infrastructure services revenues | 236,099 | 14,119 | |||||||||
Net income attributable to Southwest Gas Holdings, Inc. | $ 10,844 | $ 690 |