Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 17, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SWX | ||
Entity Registrant Name | SOUTHWEST GAS CORP | ||
Entity Central Index Key | 92416 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 46,637,647 | ||
Entity Public Float | $2,454,899,230 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Utility plant: | ||
Gas plant | $5,556,599,000 | $5,252,469,000 |
Less: accumulated depreciation | -1,973,098,000 | -1,868,504,000 |
Acquisition adjustments, net | 550,000 | 730,000 |
Construction work in progress | 74,332,000 | 101,413,000 |
Net utility plant (Note 2) | 3,658,383,000 | 3,486,108,000 |
Other property and investments (Note 1) | 326,743,000 | 260,871,000 |
Restricted cash (Note 1) | 821,000 | |
Current assets: | ||
Cash and cash equivalents | 39,566,000 | 41,077,000 |
Accounts receivable, net of allowances (Note 3) | 281,824,000 | 219,469,000 |
Accrued utility revenue | 73,900,000 | 72,700,000 |
Income taxes receivable, net | 21,853,000 | 3,790,000 |
Deferred income taxes, net (Note 11) | 2,109,000 | 31,130,000 |
Deferred purchased gas costs (Note 4) | 87,556,000 | 18,217,000 |
Prepaids and other current assets (Notes 1, 4, and 12) | 99,975,000 | 108,289,000 |
Total current assets | 606,783,000 | 494,672,000 |
Noncurrent assets: | ||
Goodwill (Notes 1 and 15) | 143,160,000 | 17,810,000 |
Deferred charges and other assets (Notes 2, 4, and 12) | 478,625,000 | 305,713,000 |
Total noncurrent assets | 621,785,000 | 323,523,000 |
Total assets | 5,214,515,000 | 4,565,174,000 |
Capitalization: | ||
Common stock, $1 par (authorized - 60,000,000 shares; issued and outstanding - 46,523,184 and 46,356,125 shares) (Note 10) | 48,153,000 | 47,986,000 |
Additional paid-in capital | 851,381,000 | 840,521,000 |
Accumulated other comprehensive income (loss), net (Note 5) | -50,175,000 | -41,698,000 |
Retained earnings | 639,164,000 | 567,714,000 |
Total Southwest Gas Corporation equity | 1,488,523,000 | 1,414,523,000 |
Noncontrolling interest | -2,257,000 | -2,128,000 |
Total equity | 1,486,266,000 | 1,412,395,000 |
Redeemable noncontrolling interest (Note 16) | 20,042,000 | |
Long-term debt, less current maturities (Note 6) | 1,637,592,000 | 1,381,327,000 |
Total capitalization | 3,143,900,000 | 2,793,722,000 |
Commitments and contingencies (Note 8) | ||
Current liabilities: | ||
Current maturities of long-term debt (Note 6) | 19,192,000 | 11,105,000 |
Short-term debt (Note 7) | 5,000,000 | 0 |
Accounts payable | 167,988,000 | 183,511,000 |
Customer deposits | 71,546,000 | 73,367,000 |
Accrued general taxes | 44,339,000 | 39,681,000 |
Accrued interest | 16,468,000 | 17,920,000 |
Other current liabilities (Notes 2, 4, and 12) | 145,584,000 | 108,580,000 |
Total current liabilities | 470,117,000 | 434,164,000 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits, net (Note 11) | 723,688,000 | 674,411,000 |
Taxes payable | 284,000 | |
Accumulated removal costs (Note 4) | 304,000,000 | 279,000,000 |
Other deferred credits and other long-term liabilities (Notes 2, 4, 9, and 12) | 572,810,000 | 383,593,000 |
Total deferred income taxes and other credits | 1,600,498,000 | 1,337,288,000 |
Total capitalization and liabilities | $5,214,515,000 | $4,565,174,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Common stock, par | $1 | $1 |
Common stock, authorized | 60,000,000 | 60,000,000 |
Common stock, issued | 46,523,184 | 46,356,125 |
Common stock, outstanding | 46,523,184 | 46,356,125 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating revenues: | |||
Gas operating revenues | $1,382,087 | $1,300,154 | $1,321,728 |
Construction revenues | 739,620 | 650,628 | 606,050 |
Total operating revenues | 2,121,707 | 1,950,782 | 1,927,778 |
Operating expenses: | |||
Net cost of gas sold | 505,356 | 436,001 | 479,602 |
Operations and maintenance | 383,732 | 384,914 | 369,979 |
Depreciation and amortization | 253,027 | 236,817 | 223,422 |
Taxes other than income taxes | 47,252 | 45,551 | 41,728 |
Construction expenses | 647,857 | 573,284 | 541,523 |
Total operating expenses | 1,837,224 | 1,676,567 | 1,656,254 |
Operating income | 284,483 | 274,215 | 271,524 |
Other income and (expenses): | |||
Net interest deductions (Notes 6 and 7) | -72,069 | -63,700 | -68,020 |
Other income (deductions) | 7,107 | 12,300 | 4,411 |
Total other income and (expenses) | -64,962 | -51,400 | -63,609 |
Income before income taxes | 219,521 | 222,815 | 207,915 |
Income tax expense (Note 11) | 78,373 | 77,942 | 75,276 |
Net income | 141,148 | 144,873 | 132,639 |
Net income (loss) attributable to noncontrolling interests | 22 | -447 | -692 |
Net income attributable to Southwest Gas Corporation | $141,126 | $145,320 | $133,331 |
Basic earnings per share (Notes 1 and 14) | $3.04 | $3.14 | $2.89 |
Diluted earnings per share (Notes 1 and 14) | $3.01 | $3.11 | $2.86 |
Average number of common shares outstanding | 46,494 | 46,318 | 46,115 |
Average shares outstanding (assuming dilution) | 46,944 | 46,758 | 46,555 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $141,148 | $144,873 | $132,639 |
Defined benefit pension plans (Notes 5 and 9): | |||
Net actuarial gain (loss) | -107,661 | 62,214 | -46,409 |
Amortization of prior service cost | 220 | 220 | |
Amortization of transition obligation | 538 | ||
Amortization of net actuarial loss | 14,667 | 21,190 | 15,870 |
Prior service cost | -4,130 | -1,502 | |
Regulatory adjustment | 86,991 | -76,651 | 26,518 |
Net defined benefit pension plans | -9,913 | 6,973 | -4,985 |
Forward-starting interest rate swaps: | |||
Unrealized/realized gain (loss) (Notes 5 and 12) | 1,834 | ||
Amounts reclassified into net income (Notes 5 and 12) | 2,073 | 2,074 | 1,737 |
Net forward-starting interest rate swaps | 2,073 | 2,074 | 3,571 |
Foreign currency translation adjustments | -659 | ||
Total other comprehensive income (loss), net of tax | -8,499 | 9,047 | -1,414 |
Comprehensive income | 132,649 | 153,920 | 131,225 |
Comprehensive income (loss) attributable to noncontrolling interests | -447 | -692 | |
Comprehensive income attributable to Southwest Gas Corporation | $132,649 | $154,367 | $131,917 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOW FROM OPERATING ACTIVITIES: | |||
Net Income | $141,148 | $144,873 | $132,639 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 253,027 | 236,817 | 223,422 |
Deferred income taxes | 64,309 | 68,639 | 66,280 |
Changes in current assets and liabilities: | |||
Accounts receivable, net of allowances | -3,683 | -22,556 | 12,333 |
Accrued utility revenue | -1,200 | -700 | -1,700 |
Deferred purchased gas costs | -69,339 | -111,143 | 22,823 |
Accounts payable | -41,499 | 27,668 | -25,998 |
Accrued taxes | -13,573 | 925 | 113 |
Other current assets and liabilities | 23,379 | 5,084 | -18,948 |
Gains on sale | -6,171 | -4,112 | -8,040 |
Changes in undistributed stock compensation | 7,973 | 6,958 | 5,137 |
AFUDC | -1,995 | -2,274 | -1,943 |
Changes in other assets and deferred charges | -21,732 | -21,719 | -15,367 |
Changes in other liabilities and deferred credits | 15,779 | 17,749 | -4,427 |
Net cash provided by operating activities | 346,423 | 346,209 | 386,324 |
CASH FLOW FROM INVESTING ACTIVITIES: | |||
Construction expenditures and property additions | -396,898 | -364,276 | -395,712 |
Acquisition of businesses, net of cash acquired | -190,497 | ||
Restricted cash | 1,233 | 12,785 | |
Changes in customer advances | 20,363 | 7,773 | -3,025 |
Miscellaneous inflows | 11,611 | 8,465 | 13,963 |
Miscellaneous outflows | -1,400 | -2,004 | |
Net cash used in investing activities | -555,588 | -348,038 | -373,993 |
CASH FLOW FROM FINANCING ACTIVITIES: | |||
Issuance of common stock, net | 405 | 1,635 | 1,581 |
Dividends paid | -66,275 | -59,535 | -53,040 |
Interest rate swap settlement | -21,754 | ||
Issuance of long-term debt, net | 269,228 | 311,290 | 489,518 |
Retirement of long-term debt | -139,155 | -137,013 | -427,043 |
Change in credit facility and commercial paper | 140,000 | -101,000 | 2,000 |
Change in short-term debt | 5,000 | 1,999 | |
Principal payments on capital lease obligations | -434 | ||
Other | -1,257 | ||
Net cash provided by (used in) financing activities | 207,512 | 17,376 | -8,738 |
Effects of currency translation on cash and cash equivalents | 142 | ||
Change in cash and cash equivalents | -1,511 | 15,547 | 3,593 |
Cash and cash equivalents at beginning of period | 41,077 | 25,530 | 21,937 |
Cash and cash equivalents at end of period | 39,566 | 41,077 | 25,530 |
Supplemental information: | |||
Interest paid, net of amounts capitalized | 65,552 | 58,730 | 87,439 |
Income taxes paid (received) | $24,247 | $6,850 | $2,843 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Non-controlling Interest [Member] | Redeemable Noncontrolling Interest (Temporary Equity) [Member] | |
In Thousands, except Share data | ||||||||
Balance at Dec. 31, 2011 | $1,225,031 | $47,586 | $821,640 | ($49,331) | $406,125 | ($989) | ||
Balance, Shares at Dec. 31, 2011 | 45,956,000 | |||||||
Common stock issuances, Value | 7,329 | 192 | 7,137 | |||||
Common stock issuance, Shares | 192,000 | |||||||
Net income (loss) | 132,639 | 133,331 | -692 | |||||
Net actuarial gain (loss) arising during the period, less amortization of unamortized benefit plan cost, net of tax (Notes 5 and 9) | -4,985 | -4,985 | ||||||
FSIRS realized and unrealized gain, net of tax (Notes 5 and 12) | 1,834 | 1,834 | ||||||
Amounts reclassified into net income (Notes 5 and 12) | 1,737 | 1,737 | ||||||
Dividends declared Common | -55,087 | -55,087 | ||||||
Balance at Dec. 31, 2012 | 1,308,498 | 47,778 | 828,777 | -50,745 | 484,369 | -1,681 | ||
Balance, Shares at Dec. 31, 2012 | 46,148,000 | |||||||
Common stock issuances, Value | 11,952 | 208 | 11,744 | |||||
Common stock issuance, Shares | 208,000 | |||||||
Net income (loss) | 144,873 | 145,320 | -447 | |||||
Net actuarial gain (loss) arising during the period, less amortization of unamortized benefit plan cost, net of tax (Notes 5 and 9) | 6,973 | 6,973 | ||||||
Amounts reclassified into net income (Notes 5 and 12) | 2,074 | 2,074 | ||||||
Dividends declared Common | -61,975 | -61,975 | ||||||
Balance at Dec. 31, 2013 | 1,412,395 | 47,986 | 840,521 | -41,698 | 567,714 | -2,128 | ||
Balance, Shares at Dec. 31, 2013 | 46,356,125 | 46,356,000 | ||||||
Common stock issuances, Value | 11,027 | 167 | 10,860 | |||||
Common stock issuance, Shares | 167,000 | |||||||
Net income (loss) | 141,148 | |||||||
Net actuarial gain (loss) arising during the period, less amortization of unamortized benefit plan cost, net of tax (Notes 5 and 9) | -9,913 | -9,913 | ||||||
Amounts reclassified into net income (Notes 5 and 12) | 2,073 | 2,073 | ||||||
Dividends declared Common | -68,715 | -68,715 | ||||||
Redeemable noncontrolling interest attributable to acquisition | 18,952 | |||||||
Net income (loss) | 140,997 | 141,126 | -129 | 151 | ||||
Fair value accretion (Note 16) | -961 | -961 | 961 | |||||
Foreign currency exchange translation adj. | -637 | -637 | -22 | |||||
Balance at Dec. 31, 2014 | $1,486,266 | $48,153 | $851,381 | ($50,175) | $639,164 | ($2,257) | $20,042 | |
Balance, Shares at Dec. 31, 2014 | 46,523,184 | 46,523,000 | [1] | |||||
[1] | At December 31, 2014, 2.7 million common shares were registered and available for issuance under provisions of the Company's various stock issuance plans. In addition, approximately 36,000 common shares are registered for issuance upon the exercise of options granted under the Stock Incentive Plan (see Note 10). |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity and Redeemable Noncontrolling Interest (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared Common, per share | $1.46 | $1.32 | $1.18 |
Shares registered and available for issuance | 2,700,000 | ||
Common shares registered for issuance upon exercise of options | 36,000 | 52,000 | 125,000 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies | ||||||||||||
Nature of Operations. Southwest Gas Corporation and its subsidiaries (the “Company”) consist of two segments: natural gas operations (“Southwest” or the “natural gas operations” segment) and construction services. 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. Centuri Construction Group Inc. (“Centuri” or the “construction services” segment), a wholly owned subsidiary, is a full-service underground piping contractor that primarily provides utility companies with trenching and installation, replacement, and maintenance services for energy distribution systems, and industrial construction solutions. Centuri operations are generally conducted under the business names of NPL Construction Co., Link-Line, W.S. Nicholls, and Brigadier. | |||||||||||||
Basis of Presentation. The Company follows generally accepted accounting principles 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 the natural gas utility operations conforms with U.S. GAAP as applied to 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. | |||||||||||||
Consolidation. The accompanying financial statements are presented on a consolidated basis and include the accounts of Southwest Gas Corporation and all subsidiaries (except those accounted for using the equity method as discussed further 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. | |||||||||||||
In October 2014, the Company, through its subsidiaries, led principally by NPL Construction Co., completed the acquisition of three privately held, affiliated construction businesses for approximately US$221 million. Additional consideration will be paid or accrued through the true-up period. The acquisition extends the construction services operations into Canada and provides additional opportunities for market expansion. Funding for the acquisition was primarily provided by a new $300 million secured revolving credit and term loan facility described in Note 6 – Long-Term Debt. The acquired companies comprise: (i) Link-Line Contractors Ltd., an Ontario corporation (“Link-Line”) that provides construction and maintenance services for the Canadian utility industry, with operations primarily in Ontario, Canada; (ii) W.S. Nicholls Construction, Inc., an Ontario corporation, as well as two additional companies also operating under the name W.S. Nicholls, which together provide industrial construction solutions, fabrication, and civil services to the oil and gas, pulp and paper, and automotive industries, as well as government and private sector customers in British Columbia and Ontario, Canada (collectively “W.S. Nicholls”); and (iii) via asset purchase, the business of Brigadier Pipelines Inc., a Delaware corporation, operating primarily in Pennsylvania as a specialty midstream pipeline contractor (“Brigadier”). | |||||||||||||
In October 2014, upon completion of the acquisition, the Company restructured its ownership of NPL Construction Co. and Carson Water Company (an inactive wholly owned subsidiary) creating a holding company, a direct subsidiary of Carson Water Company. In January 2015, the holding company was renamed Centuri. In addition, two direct subsidiaries exist under Centuri: Vistus Construction Group Inc. (“Vistus”, U.S. operations) and Lynxus Construction Group Inc. (“Lynxus”, Canadian operations). Three subsidiaries exist under Vistus: NPL Construction Co., Southwest Administrators, and Brigadier Pipelines Inc. Link-Line and W.S. Nicholls are subsidiaries of Lynxus. | |||||||||||||
Lynxus, including its subsidiaries of Link-Line, W.S. Nicholls, WSN Construction and WSN Industries will be consolidated under the voting interest method of accounting. Brigadier will be consolidated under the voting interest method. | |||||||||||||
Centuri, through its subsidiaries, holds a 65% interest in a venture to market natural gas engine-driven heating, ventilating, and air conditioning (“HVAC”) technology and products. Centuri consolidates the entity (IntelliChoice Energy, LLC) as a majority-owned subsidiary. Centuri, through its subsidiaries, holds a 50% interest in W.S. Nicholls Western Construction LTD. (“Western”), a Canadian construction 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 Company’s investment in Western is not significant in relation to its total assets included in the Consolidated Balance Sheets. At December 31, 2014, Centuri’s investment in Western is $14.7 million and its maximum exposure to loss as a result of its involvement with the entity is estimated at $20.8 million, including obligations under a construction bonding arrangement under which Centuri has guaranteed the performance on certain projects of Western. The estimated maximum exposure to loss represents the maximum loss that would be absorbed by Centuri in the event that all of the assets of Western are deemed worthless. | |||||||||||||
Centuri, through its subsidiaries, also has a 25% interest in CCI-TBN Toronto, Inc. and a 50% interest in Matheson-Nicholls Joint Venture. Any future changes to the values of these entities will be recorded by Centuri using the equity method. The equity method investment in Western is included in Other Property and Investments in the 2014 Consolidated Balance Sheet. | |||||||||||||
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 includes contracted services, material, payroll and related costs such as taxes and 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 includes (millions of dollars): | |||||||||||||
2014 | 2013 | ||||||||||||
Centuri property, equipment, and intangibles | $ | 405 | $ | 320 | |||||||||
Centuri accumulated provision for depreciation and amortization | (187 | ) | (163 | ) | |||||||||
Net cash surrender value of COLI policies | 99 | 93 | |||||||||||
Other property | 10 | 11 | |||||||||||
Total | $ | 327 | $ | 261 | |||||||||
Restricted Cash. A construction bond that was required to be in place during the completion of one of Centuri’s construction projects is classified in the Consolidated Balance Sheets as restricted cash. The project is expected to be completed within one year. The restricted cash was acquired in conjunction with the acquisition of construction services businesses. See Note 15 – Acquisition of Construction Services Businesses for more information. | |||||||||||||
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. Prepaids and other current assets includes gas pipe inventory and operating supplies of $23 million in 2014 and $21 million in 2013. | |||||||||||||
Income Taxes. The Company uses the asset and liability method of accounting for 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, 2014, the Company sustained losses in its foreign jurisdiction and therefore has no undistributed foreign earnings. However, the Company intends to permanently reinvest any future foreign earnings in Canada. | |||||||||||||
Cash and Cash Equivalents. For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and financial instruments with a purchase-date maturity of three months or less. In general, cash and cash equivalents fall within Level 1 (quoted prices for identical financial instruments) of the three-level fair value hierarchy that ranks the inputs used to measure fair value by their reliability. However, cash and cash equivalents at December 31, 2014 also includes two money market fund investments totaling approximately $250,000 which fall within Level 2 (significant other observable inputs) of the fair value hierarchy, due to the asset valuation methods used by money market funds. | |||||||||||||
During 2013 and 2014, approximately $9.3 million and $8.1 million, respectively, of customer advances, upon contract expiration, were applied as contributions toward utility construction activity and represent a non-cash investing activity. Additionally, in conjunction with the acquisition, the Company acquired several capital leases. During 2014 and after the acquisition date, an additional capital lease obligation was entered into and represents a non-cash financing inflow activity of $204,000. The associated capital lease asset represents a non-cash investing outflow activity of $204,000. In association with the acquisition, cash flows from investing activities includes an $18.9 million non-cash investing outflow due to equity to the noncontrolling interest in a subsidiary to acquire businesses. In addition, a non-cash investing outflow activity of $10.8 million related to an increase in an acquisition consideration payable is included. | |||||||||||||
Inventories. Inventories are carried at weighted average cost and include natural gas stored underground, liquefied natural gas storage and materials and supplies. | |||||||||||||
Goodwill. The construction services segment includes Goodwill of $133 million in 2014 ($125 million related to the recent acquisition, which is net of approximately $5 million due to foreign currency exchange translation adjustments between the acquisition date and the end of the year). The December 31, 2014 and 2013 Goodwill amounts shown in the Consolidated Balance Sheets include approximately $8 million of Goodwill recognized when Southwest first acquired NPL Construction Co. and is associated with the construction services segment. Goodwill of $10 million in both 2014 and 2013 is associated with the natural gas operations segment. Goodwill is assessed for impairment annually, as required by U.S. GAAP, or otherwise, if circumstances indicate impairment to the carrying value of goodwill. No impairment was recorded in 2014. | |||||||||||||
Intangible Assets. Intangible assets 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. Intangible assets have finite lives and are described in Notes 2 and 15. | |||||||||||||
Accumulated Removal Costs. Approved regulatory practices allow Southwest to include in depreciation expense a component to recover removal costs associated with utility plant retirements. In accordance with the Securities and Exchange Commission’s (“SEC”) position on presentation of these amounts, management has reclassified estimated removal costs from accumulated depreciation to accumulated removal costs within the liabilities section of the balance sheets. The reclassified amounts are presented in the table below (thousands of dollars): | |||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
Accumulated removal costs | $ | 304,000 | $ | 279,000 | |||||||||
Gas Operating Revenues. Revenues are recorded when customers are billed. Customer billings are based on monthly meter reads and are calculated in accordance with applicable tariffs and state and local laws, regulations, and 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 reading 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. | |||||||||||||
The Company acts as an agent for state and local taxing authorities in the collection and remission of a variety of taxes, including sales and use taxes and surcharges. These taxes are not included in gas operating revenues. The Company uses the net classification method to report taxes collected from customers to be remitted to governmental authorities. | |||||||||||||
Construction 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. Long-term fixed-price contracts use the percentage-of-completion method of accounting and, therefore, take into account the cost, estimated earnings, and revenue to date on contracts not yet completed. The amount of revenue recognized on fixed-price contracts is based on costs expended to date relative to anticipated final contract costs. 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. In connection with significant changes in estimated costs to complete a large fixed-price contract, construction services results for 2012 reflected a pretax loss of $15 million ($0.20 per share, after tax). The estimated cost changes that resulted in the loss recognized included reductions in projected productivity and higher costs of restoration work. During 2013, profitability on this contract was minimal and as of December 31, 2013, this fixed-price contract was substantially complete. Some unit-price contracts contain caps that if encroached, trigger revenue and loss recognition similar to a fixed-price contract model. | |||||||||||||
Construction Expenses. The construction expenses classification in the income statement includes payroll expenses, job-related equipment costs, direct construction costs, gains and losses on equipment sales, general and administrative expenses, acquisition and acquisition-related costs, and office-related fixed costs of Centuri. | |||||||||||||
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 PGA deferrals and recoveries. | |||||||||||||
Operations and Maintenance Expense. For financial reporting purposes, operations and maintenance expense includes Southwest’s operating and maintenance costs associated with serving utility customers, uncollectible expense, administrative and general salaries and expense, employee benefits expense, 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. Other regulatory assets, including acquisition adjustments, are amortized when appropriate, over time periods authorized by regulators. Nonutility and construction 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 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. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
AFUDC: | |||||||||||||
Debt portion | $ | 1,228 | $ | 1,260 | $ | 1,129 | |||||||
Equity portion | 1,995 | 2,274 | 1,943 | ||||||||||
AFUDC capitalized as part of utility plant | $ | 3,223 | $ | 3,534 | $ | 3,072 | |||||||
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): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Change in COLI policies | $ | 5,300 | $ | 12,400 | $ | 6,600 | |||||||
Interest income | 2,602 | 461 | 924 | ||||||||||
Pipe replacement costs | — | (132 | ) | (2,680 | ) | ||||||||
Foreign currency transaction gain (loss) | (178 | ) | — | — | |||||||||
Miscellaneous income and (expense) | (617 | ) | (429 | ) | (433 | ) | |||||||
Total other income (deductions) | $ | 7,107 | $ | 12,300 | $ | 4,411 | |||||||
Included in the table above is the change in cash surrender values of company-owned life insurance (“COLI”) policies (including net death benefits recognized). Changes in cash surrender values are directly influenced by the investment portfolio underlying the insurance 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. 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. Pipe replacement costs include amounts associated with certain Arizona non-recoverable pipe replacement work. The replacement program work subject to non-recoverability was substantially completed in 2012. | |||||||||||||
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, the amounts of which are not material, are included in other income (expense) within net income. 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. In connection with the ownership structure of Centuri and its subsidiary entities, a redeemable noncontrolling interest exists in Lynxus. The Company concluded that this noncontrolling interest meets the definition of a participating security in connection with Accounting Standards Codification (“ASC”) Topic 260, as a result of dividend participation rights of the noncontrolling interest that are different than the underlying proportional ownership interest. Related provisions of ASC 260 would require consideration of the participation right in computing earnings per share. However, as earnings are already attributed to the noncontrolling interest equivalent to the participation right, taking an additional adjustment in computing basic earnings per share would duplicate the economic impact associated with the participating security. Furthermore, as net income attributable to common shareholders of Southwest Gas Corporation has already been adjusted for the attribution of income to the noncontrolling interest, the Company concluded that a diluted earnings per share calculation, assuming exchange of the ownership shares of the noncontrolling interest in Lynxus, for ownership shares in Centuri, would not produce a different result than that which results from computing basic earnings per share. The noncontrolling interest is also redeemable for fair value at specified dates in the future. No adjustment will be made to the Company’s income attributable to common shareholders, in computing earnings per share, to reflect changes in the redemption price, as redemption at fair value is not considered an economic distribution different from other common stockholders. See also Note 15 – Acquisition of Construction Services Businesses and Note 16 – Construction Services Noncontrolling Interests. | |||||||||||||
Basic earnings per share (“EPS”) are calculated by dividing net income attributable to Southwest Gas Corporation by the weighted-average number of shares outstanding during the period. Diluted EPS includes additional weighted-average common stock equivalents (stock options, 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. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Average basic shares | 46,494 | 46,318 | 46,115 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | 17 | 26 | 42 | ||||||||||
Performance shares | 215 | 231 | 254 | ||||||||||
Restricted stock units | 218 | 183 | 144 | ||||||||||
Average diluted shares | 46,944 | 46,758 | 46,555 | ||||||||||
Recently Issued Accounting Standards Updates. In May 2014, the Financial Accounting Standards Board (“FASB”) issued the update “Revenue from Contracts with Customers (Topic 606).” The update replaces much of the current guidance regarding revenue recognition including most industry-specific guidance. The core principle of the update is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity will be required to identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the entity satisfies a performance obligation. In addition to the new revenue recognition requirements, entities will be required to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Entities may choose between two retrospective transition methods when applying the update. The Company plans to adopt this update, as required, on January 1, 2017 for interim and annual reporting periods. Early adoption is not permitted. The Company is evaluating what impact this standard might have on its consolidated financial statements and disclosures. Additionally, the power and utilities industry as a whole assembled a task force for purposes of considering unique circumstances that relate to our industry and for communicating those industry considerations to the American Institute of Certified Public Accountants. Those undertakings are ongoing. | |||||||||||||
In August 2014, the FASB issued the update “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management to asses a company’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. Under the update, disclosures are required when conditions give rise to substantial doubt about a company’s ability to continue as a going concern within one year from the financial statement issuance date. The update is effective for the annual period ending after December 15, 2016, and all annual and interim periods thereafter. This update is not expected to have a material impact on the Company’s disclosures. | |||||||||||||
Subsequent Events. Management of the Company 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. | |||||||||||||
Reclassifications. Certain reclassifications were made to the prior year’s financial information included in the Consolidated Balance Sheets (goodwill is identified separately from Deferred charges and other assets) in order to present the prior-year information on a basis comparable with the current year’s presentation, with no impact to total assets overall. |
Utility_Plant_and_Leases
Utility Plant and Leases | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Leases [Abstract] | |||||||||||||
Utility Plant and Leases | Note 2 – Utility Plant and Leases | ||||||||||||
Net utility plant as of December 31, 2014 and 2013 was as follows (thousands of dollars): | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Gas plant: | |||||||||||||
Storage | $ | 22,531 | $ | 21,282 | |||||||||
Transmission | 312,300 | 313,306 | |||||||||||
Distribution | 4,655,640 | 4,410,598 | |||||||||||
General | 356,072 | 324,490 | |||||||||||
Software and software-related intangibles | 196,035 | 168,815 | |||||||||||
Other | 14,021 | 13,978 | |||||||||||
5,556,599 | 5,252,469 | ||||||||||||
Less: accumulated depreciation | (1,973,098 | ) | (1,868,504 | ) | |||||||||
Acquisition adjustments, net | 550 | 730 | |||||||||||
Construction work in progress | 74,332 | 101,413 | |||||||||||
Net utility plant | $ | 3,658,383 | $ | 3,486,108 | |||||||||
Depreciation and amortization expense on gas plant, including intangibles, was as follows (thousands of dollars): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation and amortization expense | $ | 194,360 | $ | 185,283 | $ | 182,612 | |||||||
Included in the figures above is amortization of intangibles of $11.7 million in 2014, $10.3 million in 2013, and $9.3 million in 2012. | |||||||||||||
Operating Leases and Rentals. In July 2014, the Company purchased for $16.5 million a portion of its corporate headquarters office complex in Las Vegas that it had previously leased. With the completion of the purchase, the lease terminated. | |||||||||||||
The Company leases certain office and construction equipment. The majority of these leases are short-term and accounted for as operating leases. For the gas segment, these leases are also treated as operating leases for regulatory purposes. Centuri has various short-term operating leases of equipment and temporary office sites. The table below presents Southwest’s rental payments and Centuri’s lease payments that are included in operating expenses (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Southwest Gas | $ | 5,330 | $ | 8,308 | $ | 7,762 | |||||||
Centuri | 30,012 | 27,118 | 24,054 | ||||||||||
Consolidated rental payments/lease expense | $ | 35,342 | $ | 35,426 | $ | 31,816 | |||||||
The following is a schedule of future minimum lease payments for significant non-cancelable operating leases (with initial or remaining terms in excess of one year) as of December 31, 2014 (thousands of dollars): | |||||||||||||
Year Ending December 31, | |||||||||||||
2015 | $ | 5,957 | |||||||||||
2016 | 4,236 | ||||||||||||
2017 | 2,532 | ||||||||||||
2018 | 1,582 | ||||||||||||
2019 | 912 | ||||||||||||
Thereafter | 831 | ||||||||||||
Total minimum lease payments | $ | 16,050 | |||||||||||
Capital Leases. Centuri leases certain construction equipment. These leases are considered capital leases. The amount of capital leases of equipment as of December 31, 2014 and 2013 is as follows (thousands of dollars): | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Capital leases of equipment | $ | 5,763 | $ | — | |||||||||
Less: accumulated amortization | (287 | ) | — | ||||||||||
Net capital leases | $ | 5,476 | $ | — | |||||||||
The following is a schedule of future minimum lease payments for non-cancelable capital leases (with initial or remaining terms in excess of one year) as of December 31, 2014 (thousands of dollars): | |||||||||||||
Year Ending December 31, | |||||||||||||
2015 | $ | 1,690 | |||||||||||
2016 | 1,632 | ||||||||||||
2017 | 813 | ||||||||||||
2018 | 591 | ||||||||||||
2019 | — | ||||||||||||
Thereafter | — | ||||||||||||
4,726 | |||||||||||||
Less: amount representing interest | (497 | ) | |||||||||||
Total minimum lease payments | $ | 4,229 | |||||||||||
Receivables_and_Related_Allowa
Receivables and Related Allowances | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Receivables [Abstract] | |||||
Receivables and Related Allowances | Note 3 – 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, 2014, and the percentage of customers in each of the three states. | |||||
December 31, 2014 | |||||
Gas utility customer accounts receivable balance (in thousands) | $ | 136,148 | |||
December 31, 2014 | |||||
Percent of customers by state | |||||
Arizona | 53 | % | |||
Nevada | 37 | % | |||
California | 10 | % | |||
Although the Company 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 one month 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, 2011 | $ | 3,182 | |||
Additions charged to expense | 2,471 | ||||
Accounts written off, less recoveries | (3,149 | ) | |||
Balance, December 31, 2012 | 2,504 | ||||
Additions charged to expense | 3,583 | ||||
Accounts written off, less recoveries | (4,362 | ) | |||
Balance, December 31, 2013 | 1,725 | ||||
Additions charged to expense | 4,146 | ||||
Accounts written off, less recoveries | (3,616 | ) | |||
Balance, December 31, 2014 | $ | 2,255 | |||
At December 31, 2014, the construction services segment (Centuri) had $142 million in customer accounts receivable. Both the allowance for uncollectibles and write-offs have been insignificant and are not reflected in the table above. |
Regulatory_Assets_and_Liabilit
Regulatory Assets and Liabilities | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Regulated Operations [Abstract] | |||||||||||
Regulatory Assets and Liabilities | Note 4 – Regulatory Assets and Liabilities | ||||||||||
Natural gas operations are 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 Federal Energy Regulatory Commission (“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. | |||||||||||
The following table represents existing regulatory assets and liabilities (thousands of dollars): | |||||||||||
December 31, | 2014 | 2013 | |||||||||
Regulatory assets: | |||||||||||
Accrued pension and other postretirement benefit costs (1) | $ | 390,293 | $ | 249,985 | |||||||
Unrealized net loss on non-trading derivatives (Swaps) (2) | 5,425 | 160 | |||||||||
Deferred purchased gas costs (3) | 87,556 | 18,217 | |||||||||
Accrued purchased gas costs (4) | 2,600 | 31,500 | |||||||||
Unamortized premium on reacquired debt (5) | 20,478 | 19,614 | |||||||||
Other (6) | 72,132 | 48,945 | |||||||||
578,484 | 368,421 | ||||||||||
Regulatory liabilities: | |||||||||||
Accumulated removal costs | (304,000 | ) | (279,000 | ) | |||||||
Unrealized net gain on non-trading derivatives (Swaps) (2) | — | (981 | ) | ||||||||
Deferred gain on southern Nevada division operations facility (7) | (115 | ) | (253 | ) | |||||||
Unamortized gain on reacquired debt (8) | (10,862 | ) | (11,398 | ) | |||||||
Other (9) | (34,233 | ) | (26,482 | ) | |||||||
Net regulatory assets | $ | 229,274 | $ | 50,307 | |||||||
-1 | Included in Deferred charges and other assets on the Consolidated Balance Sheets. Recovery period is greater than five years. (See Note 9). | ||||||||||
-2 | The following table details the regulatory assets/(liabilities) offsetting the derivatives (Swaps) at fair value in the balance sheets (thousands of dollars). The actual amounts, when realized at settlement, become a component of purchased gas costs under the Company’s purchased gas adjustment (“PGA”) mechanisms. (See Note 12). | ||||||||||
Instrument | Balance Sheet Location | 2014 | 2013 | ||||||||
Swaps | Deferred charges and other assets | $ | 363 | $ | 4 | ||||||
Swaps | Prepaids and other current assets | 5,062 | 156 | ||||||||
Swaps | Other current liabilities | — | (801 | ) | |||||||
Swaps | Other deferred credits | — | (180 | ) | |||||||
-3 | Balance recovered or refunded on an ongoing basis with interest. | ||||||||||
-4 | Included in Prepaids 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 | Other regulatory assets including deferred costs associated with rate cases, regulatory studies, and state mandated public purpose programs (including low income and conservation programs), as well as margin and interest-tracking accounts, amounts associated with accrued absence time, and deferred post-retirement benefits other than pensions. Recovery periods vary. | ||||||||||
-7 | Balance was originally being amortized over a four-year period beginning in the fourth quarter of 2009. As a result of the most recent Nevada general rate case, the amortization period was extended through October 2015. | ||||||||||
-8 | Included in Other deferred credits on the Consolidated Balance Sheet. Amortized over life of debt instruments. | ||||||||||
-9 | Other regulatory liabilities includes amounts associated with income tax and gross-up. |
Other_Comprehensive_Income_and
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") | Note 5 – Other Comprehensive Income and Accumulated Other Comprehensive Income (“AOCI”) | ||||||||||||||||||||||||||||||||||||||||
The following information provides insight into amounts impacting Other Comprehensive Income (Loss), both before and after-tax, within the Consolidated Statements of Comprehensive Income, which also impact Accumulated Other Comprehensive Income in the Company’s Consolidated Balance Sheets and Consolidated Statements of Equity and Redeemable Noncontrolling Interest. | |||||||||||||||||||||||||||||||||||||||||
Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Before- | Tax | Net-of- | Before- | Tax | Net-of- | Before- | Tax | Net-of- | |||||||||||||||||||||||||||||||||
Tax | (Expense) | Tax | Tax | (Expense) | Tax | Tax | (Expense) | Tax | |||||||||||||||||||||||||||||||||
Amount | or | Amount | Amount | or Benefit (1) | Amount | Amount | or Benefit (1) | Amount | |||||||||||||||||||||||||||||||||
Benefit (1) | |||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||||||||||||||||||||
Net actuarial gain/(loss) | $ | (173,646 | ) | $ | 65,985 | $ | (107,661 | ) | $ | 100,345 | $ | (38,131 | ) | $ | 62,214 | $ | (74,853 | ) | $ | 28,444 | $ | (46,409 | ) | ||||||||||||||||||
Amortization of prior service cost | 355 | (135 | ) | 220 | 355 | (135 | ) | 220 | — | — | — | ||||||||||||||||||||||||||||||
Amortization of transition obligation | — | — | — | — | — | — | 867 | (329 | ) | 538 | |||||||||||||||||||||||||||||||
Amortization of net actuarial (gain)/loss | 23,656 | (8,989 | ) | 14,667 | 34,177 | (12,987 | ) | 21,190 | 25,597 | (9,727 | ) | 15,870 | |||||||||||||||||||||||||||||
Prior service cost | (6,661 | ) | 2,531 | (4,130 | ) | — | — | — | (2,423 | ) | 921 | (1,502 | ) | ||||||||||||||||||||||||||||
Regulatory adjustment | 140,308 | (53,317 | ) | 86,991 | (123,630 | ) | 46,979 | (76,651 | ) | 42,771 | (16,253 | ) | 26,518 | ||||||||||||||||||||||||||||
Pension plans other comprehensive income (loss) | (15,988 | ) | 6,075 | (9,913 | ) | 11,247 | (4,274 | ) | 6,973 | (8,041 | ) | 3,056 | (4,985 | ) | |||||||||||||||||||||||||||
FSIRS (designated hedging activities): | |||||||||||||||||||||||||||||||||||||||||
Unrealized/realized gain (loss) | — | — | — | — | — | — | 2,959 | (1,125 | ) | 1,834 | |||||||||||||||||||||||||||||||
Amounts reclassified into net income | 3,345 | (1,272 | ) | 2,073 | 3,345 | (1,271 | ) | 2,074 | 2,801 | (1,064 | ) | 1,737 | |||||||||||||||||||||||||||||
FSIRS other comprehensive income (loss) | 3,345 | (1,272 | ) | 2,073 | 3,345 | (1,271 | ) | 2,074 | 5,760 | (2,189 | ) | 3,571 | |||||||||||||||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||||||||||||||||||||||||||
Translation adjustments | (659 | ) | — | (659 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Foreign currency other comprehensive income (loss) | (659 | ) | — | (659 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | $ | (13,302 | ) | $ | 4,803 | $ | (8,499 | ) | $ | 14,592 | $ | (5,545 | ) | $ | 9,047 | $ | (2,281 | ) | $ | 867 | $ | (1,414 | ) | ||||||||||||||||||
-1 | Tax amounts are calculated using a 38% rate. The Company has elected to indefinitely reinvest the earnings of Centuri’s Canadian subsidiaries in Canada, thus preventing deferred taxes on such earnings. As a result of this assertion, the Company is not recognizing any tax effect or presenting a tax expense or benefit for the currency translation adjustment amount reported in Other Comprehensive Income, as repatriation of earnings is not anticipated. | ||||||||||||||||||||||||||||||||||||||||
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 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Retirement plan net actuarial loss | $ | 33,000 | |||||||||||||||||||||||||||||||||||||||
SERP net actuarial loss | 1,300 | ||||||||||||||||||||||||||||||||||||||||
PBOP net actuarial loss | 300 | ||||||||||||||||||||||||||||||||||||||||
PBOP prior service cost | 1,300 | ||||||||||||||||||||||||||||||||||||||||
Approximately $2.1 million of previously realized losses (net of tax) related to the forward-starting interest rate swaps (“FSIRS”), included in AOCI at December 31, 2014, 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: | |||||||||||||||||||||||||||||||||||||||||
AOCI – Rollforward | |||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans (Note 9) | FSIRS (Note 12) | Foreign Currency Items | |||||||||||||||||||||||||||||||||||||||
Before- | Tax | After- | Before- | Tax | After- | Before- | Tax | After- | AOCI | ||||||||||||||||||||||||||||||||
Tax | (Expense) | Tax | Tax | (Expense) | Tax | Tax | (Expense) | Tax | |||||||||||||||||||||||||||||||||
Benefit | Benefit | Benefit | |||||||||||||||||||||||||||||||||||||||
Beginning Balance AOCI December 31, 2013 | $ | (41,223 | ) | $ | 15,665 | $ | (25,558 | ) | $ | (26,033 | ) | $ | 9,893 | $ | (16,140 | ) | $ | — | $ | — | $ | — | $ | (41,698 | ) | ||||||||||||||||
Net actuarial gain/(loss) | (173,646 | ) | 65,985 | (107,661 | ) | — | — | — | — | — | — | (107,661 | ) | ||||||||||||||||||||||||||||
Translation adjustments | — | — | — | — | — | — | (659 | ) | — | (659 | ) | (659 | ) | ||||||||||||||||||||||||||||
Other comprehensive income before reclassi | (173,646 | ) | 65,985 | (107,661 | ) | — | — | — | (659 | ) | — | (659 | ) | (108,320 | ) | ||||||||||||||||||||||||||
fications | |||||||||||||||||||||||||||||||||||||||||
FSIRS amounts reclassified from AOCI (1) | — | — | — | 3,345 | (1,272 | ) | 2,073 | — | — | — | 2,073 | ||||||||||||||||||||||||||||||
Amortization of prior service cost (2) | 355 | (135 | ) | 220 | — | — | — | — | — | — | 220 | ||||||||||||||||||||||||||||||
Amortization of net actuarial loss (2) | 23,656 | (8,989 | ) | 14,667 | — | — | — | — | — | — | 14,667 | ||||||||||||||||||||||||||||||
Prior service cost | (6,661 | ) | 2,531 | (4,130 | ) | — | — | — | — | — | — | (4,130 | ) | ||||||||||||||||||||||||||||
Regulatory adjustment (3) | 140,308 | (53,317 | ) | 86,991 | — | — | — | — | — | — | 86,991 | ||||||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | (15,988 | ) | 6,075 | (9,913 | ) | 3,345 | (1,272 | ) | 2,073 | (659 | ) | — | (659 | ) | (8,499 | ) | |||||||||||||||||||||||||
Less: Translation adjustment attributable to redeemable noncontrolling interest | — | — | — | — | — | — | (22 | ) | — | (22 | ) | (22 | ) | ||||||||||||||||||||||||||||
Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation | (15,988 | ) | 6,075 | (9,913 | ) | 3,345 | (1,272 | ) | 2,073 | (637 | ) | — | (637 | ) | (8,477 | ) | |||||||||||||||||||||||||
Ending Balance AOCI December 31, 2014 | $ | (57,211 | ) | $ | 21,740 | $ | (35,471 | ) | $ | (22,688 | ) | $ | 8,621 | $ | (14,067 | ) | $ | (637 | ) | $ | — | $ | (637 | ) | $ | (50,175 | ) | ||||||||||||||
-1 | The FSIRS reclassification amounts are included in the Net interest deductions line item on the Consolidated Statements of Income. | ||||||||||||||||||||||||||||||||||||||||
-2 | These AOCI components are included in the computation of net periodic benefit cost (see Note 9 – 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 the Deferred charges and other assets line item on the Consolidated Balance Sheets). | ||||||||||||||||||||||||||||||||||||||||
The following table represents amounts (before income tax impacts) included in Accumulated other comprehensive income (in the table above), that have not yet been recognized in net periodic benefit cost as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||||||
Amounts Recognized in AOCI (Before Tax) | |||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
Net actuarial (loss) gain | $ | (439,131 | ) | $ | (289,141 | ) | |||||||||||||||||||||||||||||||||||
Prior service cost | (8,373 | ) | (2,067 | ) | |||||||||||||||||||||||||||||||||||||
Less: amount recognized in regulatory assets | 390,293 | 249,985 | |||||||||||||||||||||||||||||||||||||||
Recognized in AOCI | $ | (57,211 | ) | $ | (41,223 | ) | |||||||||||||||||||||||||||||||||||
See Note 9 – Pension and Other Postretirement Benefits for more information on the defined benefit pension plans and Note 12 – Derivatives and Fair Value Measurements for more information on the FSIRS. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Long-Term Debt | Note 6 – Long-Term Debt | ||||||||||||||||
Carrying amounts of the Company’s long-term debt and their related estimated fair values as of December 31, 2014 and December 31, 2013 are disclosed in the following table. The fair values of the revolving credit facility (including commercial paper) and the variable-rate Industrial Development Revenue Bonds (“IDRBs”) approximate their carrying values, as they are repaid quickly (in the case of credit facility borrowings) and have interest rates that reset frequently. They are categorized as Level 1 (quoted prices for identical financial instruments) within the three-level fair value hierarchy that ranks the inputs used to measure fair value by their reliability, due to the Company’s ability to access similar debt arrangements at measurement dates with comparable terms, including variable rates. The fair values of debentures, senior notes, and fixed-rate IDRBs were determined utilizing a market-based valuation approach, where fair market 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 market values of debentures and fixed-rate IDRBs are categorized as Level 2 (observable market inputs based on market prices of similar securities). The Centuri secured revolving credit and term loan facility and Centuri other debt obligations (not actively traded) are categorized as Level 3, based on significant unobservable inputs to their fair values. Since Centuri’s debt is not publicly traded, fair values for the secured revolving credit and term loan facility and other debt obligations were based on a conventional discounted cash flow methodology and utilizes 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. | |||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||
Carrying | Market | Carrying | Market | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
(Thousands of dollars) | |||||||||||||||||
Debentures: | |||||||||||||||||
Notes, 4.45%, due 2020 | $ | 125,000 | $ | 133,403 | $ | 125,000 | $ | 130,953 | |||||||||
Notes, 6.1%, due 2041 | 125,000 | 157,290 | 125,000 | 141,873 | |||||||||||||
Notes, 3.875%, due 2022 | 250,000 | 262,030 | 250,000 | 252,485 | |||||||||||||
Notes, 4.875%, due 2043 | 250,000 | 280,903 | 250,000 | 257,280 | |||||||||||||
8% Series, due 2026 | 75,000 | 102,296 | 75,000 | 96,263 | |||||||||||||
Medium-term notes, 7.59% series, due 2017 | 25,000 | 27,573 | 25,000 | 28,741 | |||||||||||||
Medium-term notes, 7.78% series, due 2022 | 25,000 | 31,144 | 25,000 | 30,586 | |||||||||||||
Medium-term notes, 7.92% series, due 2027 | 25,000 | 33,695 | 25,000 | 31,497 | |||||||||||||
Medium-term notes, 6.76% series, due 2027 | 7,500 | 9,156 | 7,500 | 8,468 | |||||||||||||
Unamortized discount | (5,223 | ) | (5,560 | ) | |||||||||||||
902,277 | 901,940 | ||||||||||||||||
Revolving credit facility and commercial paper | 150,000 | 150,000 | 10,000 | 10,000 | |||||||||||||
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 | |||||||||||||
Fixed-rate bonds: | |||||||||||||||||
5.25% 2003 Series D, due 2038 | 20,000 | 20,277 | 20,000 | 20,150 | |||||||||||||
5.25% 2004 Series A, due 2034 | — | — | 65,000 | 64,522 | |||||||||||||
5.00% 2004 Series B, due 2033 | 31,200 | 31,223 | 31,200 | 30,284 | |||||||||||||
4.85% 2005 Series A, due 2035 | 100,000 | 100,071 | 100,000 | 95,192 | |||||||||||||
4.75% 2006 Series A, due 2036 | 24,855 | 25,399 | 24,855 | 22,974 | |||||||||||||
Unamortized discount | (1,943 | ) | (2,776 | ) | |||||||||||||
374,112 | 438,279 | ||||||||||||||||
Centuri secured revolving credit and term loan facility | 199,267 | 200,341 | — | — | |||||||||||||
Centuri other debt obligations | 31,128 | 31,127 | 42,213 | 42,119 | |||||||||||||
1,656,784 | 1,392,432 | ||||||||||||||||
Less: current maturities | (19,192 | ) | (11,105 | ) | |||||||||||||
Long-term debt, less current maturities | $ | 1,637,592 | $ | 1,381,327 | |||||||||||||
In March 2014, Southwest amended its $300 million credit and commercial paper facility. The facility was previously scheduled to expire in March 2017, but was extended to March 2019. Southwest will continue to use $150 million of the facility as long-term debt and the remaining $150 million for working capital purposes. In addition to extending the credit facility, among other amendments, the applicable margins and unused commitment fees were reduced and the Pricing Level definitions were modified. 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 the Company’s senior unsecured debt rating. At December 31, 2014, the applicable margin is 1% for loans bearing interest with reference to LIBOR and 0% for loans bearing interest with reference to the alternative base rate. At December 31, 2014, $150 million was outstanding on the long-term portion of the credit facility, including $50 million in commercial paper (see commercial paper program discussion below). The effective interest rate on the long-term portion of the credit facility was 1.21% at December 31, 2014. Borrowings under the credit facility ranged from none during the first and second quarters of 2014 to a high of $165 million during November and December 2014. With regard to the short-term portion of the credit facility, there was $5 million outstanding at December 31, 2014 and no borrowings outstanding at December 31, 2013. (See Note 7 – Short-Term Debt). | |||||||||||||||||
Also in March 2014, the Company amended the note purchase agreement associated with its 6.1% $125 million notes (“Notes”). The amendment modifies the Permitted Lien category, thereby permitting liens securing indebtedness not to exceed 10% of total capitalization as of the end of any quarter. This provision in the agreement prohibits liens on any property securing other indebtedness under bank facilities unless the Notes are secured in a similar manner. The provision was amended to clarify that it only applies to bank facilities of Southwest Gas Corporation. | |||||||||||||||||
The Company has a $50 million commercial paper program. Any issuance under the commercial paper program is supported by the Company’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, 2014, and as noted above, $50 million was outstanding on the commercial paper program. The effective interest rate on the commercial paper program was 0.65% at December 31, 2014. | |||||||||||||||||
In October 2014, construction services subsidiaries of the Company entered into a $300 million secured revolving credit and term loan facility. The facility is scheduled to expire in October 2019 and replaces the previous $75 million credit facility, which was scheduled to expire in June 2015. The facility is secured by substantially all of Centuri’s assets except ones explicitly excluded under the terms of the agreement including owned real estate and certain certificated vehicles. Centuri assets securing the facility at December 31, 2014 totaled $477 million. | |||||||||||||||||
Interest rates for Centuri’s $300 million secured facility are calculated at the 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 1.00% 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 the consolidated leverage ratio. The commitment fee ranges from 0.15% to 0.40% per annum. Borrowings under the credit facility ranged from a low of $199 million during December 2014 to a high of $232 million during October 2014. All amounts outstanding are considered long-term borrowings. The outstanding amount on the facility at December 31, 2014 includes term loans in the amount of $142 million. The effective interest rate on the facility was 3.31% at December 31, 2014. | |||||||||||||||||
In November 2014, Southwest’s $65 million 2004 5.25% Series A fixed-rate IDRBs (originally due in 2034) were redeemed at par plus accrued interest. | |||||||||||||||||
The effective interest rates on the variable-rate IDRBs are included in the table below: | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
2003 Series A | 0.85 | % | 1.43 | % | |||||||||||||
2008 Series A | 0.9 | % | 1.41 | % | |||||||||||||
2009 Series A | 0.89 | % | 1.01 | % | |||||||||||||
Tax-exempt Series A | 0.84 | % | 1.07 | % | |||||||||||||
In Nevada, interest fluctuations due to changing interest rates on the 2003 Series A, 2008 Series A, and 2009 Series A variable-rate IDRBs are tracked and recovered from ratepayers through an interest balancing account. | |||||||||||||||||
Estimated maturities of long-term debt for the next five years are (in thousands): | |||||||||||||||||
2015 | $ | 19,192 | |||||||||||||||
2016 | 20,991 | ||||||||||||||||
2017 | 43,899 | ||||||||||||||||
2018 | 16,985 | ||||||||||||||||
2019 | 304,328 | ||||||||||||||||
No debt instruments have credit triggers or other clauses that result in default if Company bond ratings are lowered by rating agencies. Certain Company debt instruments contain securities ratings covenants that, if set in motion, would increase financing costs. Certain debt instruments also have leverage ratio caps and minimum net worth requirements. At December 31, 2014, the Company is in compliance with all of its covenants. Under the most restrictive of the covenants, the Company could issue approximately $1.9 billion in additional debt and meet the leverage ratio requirement. The Company has at least $900 million of cushion in equity relating to the minimum net worth requirement. | |||||||||||||||||
Certain Centuri debt instruments have leverage ratio caps and fixed charge ratio coverage requirements. At December 31, 2014, Centuri is in compliance with all of its covenants. Under the most restrictive of the covenants, Centuri could issue approximately $88 million in additional debt and meet the leverage ratio requirement. Centuri has at least $35 million of cushion in equity relating to the minimum fixed charge ratio coverage requirement. |
ShortTerm_Debt
Short-Term Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Short-Term Debt | Note 7 – Short-Term Debt |
As discussed in Note 6, Southwest has a $300 million credit facility that is scheduled to expire in March 2019, of which $150 million has been designated by management for working capital purposes. The Company had $5 million in short-term borrowings outstanding at December 31, 2014 and no short-term borrowings outstanding at December 31, 2013. The effective interest rate on the short-term portion of the credit facility was 1.13% at December 31, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 – Commitments and Contingencies |
The Company is a defendant in miscellaneous legal proceedings. The Company is also a party 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 is currently subject will have a material adverse impact on its financial position or results of operations. | |
The Company maintains liability insurance for various risks associated with the operation of its natural gas pipelines and facilities. In connection with these liability insurance policies, the Company 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 2014 to July 2015, these liability insurance policies require Southwest to be responsible for the first $1 million dollars (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, the Company 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, the Company will make an accrual. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits | Note 9 – Pension and Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
Southwest has an Employees’ Investment Plan that provides for purchases of various mutual fund investments and Company common stock by eligible Southwest employees through deduction of a percentage of base compensation, subject to IRS limitations. Southwest matches one-half of amounts deferred by employees, up to a maximum matching contribution of 3.5% of an employee’s annual compensation. Centuri has a separate plan, the cost and liability of which are not significant. The cost of the Southwest plan is listed below (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Employee Investment Plan cost | $ | 4,816 | $ | 4,850 | $ | 4,707 | |||||||||||||||||||||||||||||||||||||||||||
Southwest has a deferred compensation plan for all officers and a separate deferred compensation plan for members of the Board of Directors. The plans provide the opportunity to defer up to 100% of annual cash compensation. Southwest matches one-half of amounts deferred by officers, 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. | |||||||||||||||||||||||||||||||||||||||||||||||||
Southwest has a noncontributory qualified retirement plan with defined benefits covering substantially all employees and a separate unfunded supplemental retirement plan (“SERP”) which is limited to officers. Southwest also provides postretirement benefits other than pensions (“PBOP”) to its qualified retirees for health care, dental, and life insurance benefits. | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company recognizes the overfunded or underfunded positions of defined benefit postretirement plans, including pension plans, in its 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. | |||||||||||||||||||||||||||||||||||||||||||||||||
In accordance with regulatory deferral accounting treatment under U.S. GAAP for rate-regulated entities, the Company has established a regulatory asset 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. | |||||||||||||||||||||||||||||||||||||||||||||||||
Investment objectives and strategies for the qualified retirement plan are developed and approved by the Pension Plan Investment Committee of the Board of Directors of the Company. They are designed to enhance capital, maintain minimum liquidity required for retirement plan operations and effectively manage pension assets. | |||||||||||||||||||||||||||||||||||||||||||||||||
A target portfolio of investments in the qualified retirement plan is developed by the Pension Plan Investment Committee and is reevaluated periodically. Asset return assumptions are determined by evaluating performance expectations of the target portfolio. Projected benefit obligations are estimated using actuarial assumptions and Company benefit policy. A target mix of assets is then determined based on acceptable risk versus estimated returns in order to fund the benefit obligation. At December 31, 2014, the percentage ranges of the target portfolio are: | |||||||||||||||||||||||||||||||||||||||||||||||||
Type of Investment | Percentage Range | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 59 to 71 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | 31 to 37 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | up to 5 | ||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s 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. | |||||||||||||||||||||||||||||||||||||||||||||||||
U.S. GAAP states that the assumed discount rate should reflect the rate at which the pension benefits could be effectively settled. In making this estimate, in addition to rates implicit in current prices of annuity contracts that could be used to settle the liabilities, employers may look to rates of return on high-quality fixed-income investments available on December 31 of each year and expected to be available during the period to maturity of the pension benefits. In determining the discount rate, the Company 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 a lower interest rate environment for high-quality fixed income investments, the Company reduced the discount rate at December 31, 2014 from 2013. The methodology utilized to determine the discount rate was consistent with prior years. The weighted-average rate of compensation increase was also lowered (consistent with management’s expectations overall). The asset return assumption (which impacts the following year’s expense) was not changed. The rates are presented in the table below: | |||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.25 | % | 5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Weighted-average rate of compensation increase | 2.75 | % | 3.25 | % | |||||||||||||||||||||||||||||||||||||||||||||
Asset return assumption | 7.75 | % | 7.75 | % | |||||||||||||||||||||||||||||||||||||||||||||
A landmark change to a new actuarial mortality table by the Society of Actuaries, which takes into account longer life spans for plan participants and forms a new basis for retirement plan obligations in the U.S., will significantly increase the expense level for 2015. It also negatively impacts the funded status of the plan at the end of 2014. Pension expense for 2015 is estimated to increase by $10 million compared to 2014 because of the extended mortality assumption and lower discount rate. 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 Statements of Income. | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Qualified | SERP | PBOP | Qualified | SERP | PBOP | ||||||||||||||||||||||||||||||||||||||||||||
Retirement Plan | Retirement Plan | ||||||||||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in benefit obligations | |||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) | $ | 886,714 | $ | 36,143 | $ | 58,020 | $ | 902,812 | $ | 37,373 | $ | 59,704 | |||||||||||||||||||||||||||||||||||||
Service cost | 21,360 | 292 | 1,101 | 23,056 | 373 | 1,220 | |||||||||||||||||||||||||||||||||||||||||||
Interest cost | 43,440 | 1,745 | 2,829 | 37,607 | 1,535 | 2,482 | |||||||||||||||||||||||||||||||||||||||||||
Plan amendments | — | — | 6,661 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 144,606 | 5,459 | 4,567 | (44,768 | ) | (661 | ) | (4,073 | ) | ||||||||||||||||||||||||||||||||||||||||
Benefits paid | (35,880 | ) | (2,463 | ) | (976 | ) | (31,993 | ) | (2,477 | ) | (1,313 | ) | |||||||||||||||||||||||||||||||||||||
Benefit obligation at end of year (PBO/PBO/APBO) | 1,060,240 | 41,176 | 72,202 | 886,714 | 36,143 | 58,020 | |||||||||||||||||||||||||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||||||||||||||||||||||||||
Market value of plan assets at beginning of year | 719,944 | — | 42,314 | 609,750 | — | 35,250 | |||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 34,732 | — | 2,859 | 96,187 | — | 7,319 | |||||||||||||||||||||||||||||||||||||||||||
Employer contributions | 36,000 | 2,463 | — | 46,000 | 2,477 | 169 | |||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (35,880 | ) | (2,463 | ) | (281 | ) | (31,993 | ) | (2,477 | ) | (424 | ) | |||||||||||||||||||||||||||||||||||||
Market value of plan assets at end of year | 754,796 | — | 44,892 | 719,944 | — | 42,314 | |||||||||||||||||||||||||||||||||||||||||||
Funded status at year end | $ | (305,444 | ) | $ | (41,176 | ) | $ | (27,310 | ) | $ | (166,770 | ) | $ | (36,143 | ) | $ | (15,706 | ) | |||||||||||||||||||||||||||||||
Weighted-average assumptions (benefit obligation) | |||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.25 | % | 4.25 | % | 4.25 | % | 5 | % | 5 | % | 5 | % | |||||||||||||||||||||||||||||||||||||
Weighted-average rate of compensation increase | 2.75 | % | 2.75 | % | N/A | 3.25 | % | 3.25 | % | N/A | |||||||||||||||||||||||||||||||||||||||
Estimated funding for the plans above during calendar year 2015 is approximately $39 million of which $36 million pertains to the retirement plan. Management monitors plan assets and liabilities and could, 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. | |||||||||||||||||||||||||||||||||||||||||||||||||
The accumulated benefit obligation for the retirement plan and the SERP is presented below (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Retirement plan | $ | 886,215 | $ | 794,919 | |||||||||||||||||||||||||||||||||||||||||||||
SERP | 39,125 | 33,894 | |||||||||||||||||||||||||||||||||||||||||||||||
Benefits expected to be paid for the pension, PBOP, and the SERP over the next 10 years are as follows (in millions): | |||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | ||||||||||||||||||||||||||||||||||||||||||||
Pension | $39.10 | $41.30 | $43.10 | $45.30 | $47.50 | $272.70 | |||||||||||||||||||||||||||||||||||||||||||
PBOP | 3.3 | 3.6 | 3.8 | 4 | 4.1 | 20.4 | |||||||||||||||||||||||||||||||||||||||||||
SERP | 2.6 | 2.6 | 2.6 | 2.6 | 2.6 | 13 | |||||||||||||||||||||||||||||||||||||||||||
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% declining to 5%. The Company makes fixed contributions for health care benefits of employees who retire after 1988, but 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. | |||||||||||||||||||||||||||||||||||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||||||||||||||||||||||||||||
Qualified | SERP | PBOP | |||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plan | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 21,360 | $ | 23,056 | $ | 20,319 | $ | 292 | $ | 373 | $ | 274 | $ | 1,101 | $ | 1,220 | $ | 977 | |||||||||||||||||||||||||||||||
Interest cost | 43,440 | 37,607 | 38,266 | 1,745 | 1,535 | 1,629 | 2,829 | 2,482 | 2,547 | ||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (53,342 | ) | (49,840 | ) | (45,780 | ) | — | — | — | (3,264 | ) | (2,824 | ) | (2,404 | ) | ||||||||||||||||||||||||||||||||||
Amortization of prior service cost | — | — | — | — | — | — | 355 | 355 | — | ||||||||||||||||||||||||||||||||||||||||
Amortization of transition obligation | — | — | — | — | — | — | — | — | 867 | ||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | 22,873 | 32,261 | 23,883 | 783 | 971 | 683 | — | 945 | 1,031 | ||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 34,331 | $ | 43,084 | $ | 36,688 | $ | 2,820 | $ | 2,879 | $ | 2,586 | $ | 1,021 | $ | 2,178 | $ | 3,018 | |||||||||||||||||||||||||||||||
Weighted-average assumptions (net benefit cost) | |||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 5 | % | 4.25 | % | 5 | % | 5 | % | 4.25 | % | 5 | % | 5 | % | 4.25 | % | 5 | % | |||||||||||||||||||||||||||||||
Expected return on plan assets | 7.75 | % | 8 | % | 8 | % | 7.75 | % | 8 | % | 8 | % | 7.75 | % | 8 | % | 8 | % | |||||||||||||||||||||||||||||||
Weighted-average rate of compensation increase | 3.25 | % | 2.75 | % | 3 | % | 3.25 | % | 2.75 | % | 3 | % | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | Qualified | SERP | PBOP | Total | Qualified | SERP | PBOP | Total | Qualified | SERP | PBOP | ||||||||||||||||||||||||||||||||||||||
Retirement | Retirement | Retirement | |||||||||||||||||||||||||||||||||||||||||||||||
Plan | Plan | Plan | |||||||||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) (a) | $ | 173,646 | $ | 163,215 | $ | 5,460 | $ | 4,971 | $ | (100,345 | ) | $ | (91,115 | ) | $ | (662 | ) | $ | (8,568 | ) | $ | 74,853 | $ | 70,016 | $ | 4,111 | $ | 726 | |||||||||||||||||||||
Amortization of prior service cost (b) | (355 | ) | — | — | (355 | ) | (355 | ) | — | — | (355 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||
Amortization of transition obligation (b) | — | — | — | — | — | — | — | — | (867 | ) | — | — | (867 | ) | |||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss (b) | (23,656 | ) | (22,872 | ) | (784 | ) | — | (34,177 | ) | (32,261 | ) | (971 | ) | (945 | ) | (25,597 | ) | (23,883 | ) | (683 | ) | (1,031 | ) | ||||||||||||||||||||||||||
Prior service cost | 6,661 | — | — | 6,661 | — | — | — | — | 2,423 | — | — | 2,423 | |||||||||||||||||||||||||||||||||||||
Regulatory adjustment | (140,308 | ) | (129,031 | ) | — | (11,277 | ) | 123,630 | 113,762 | — | 9,868 | (42,771 | ) | (41,520 | ) | — | (1,251 | ) | |||||||||||||||||||||||||||||||
Recognized in other comprehensive | |||||||||||||||||||||||||||||||||||||||||||||||||
(income) loss | 15,988 | 11,312 | 4,676 | — | (11,247 | ) | (9,614 | ) | (1,633 | ) | — | 8,041 | 4,613 | 3,428 | — | ||||||||||||||||||||||||||||||||||
Net periodic benefit costs recognized in net income | 38,172 | 34,331 | 2,820 | 1,021 | 48,141 | 43,084 | 2,879 | 2,178 | 42,292 | 36,688 | 2,586 | 3,018 | |||||||||||||||||||||||||||||||||||||
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss | $ | 54,160 | $ | 45,643 | $ | 7,496 | $ | 1,021 | $ | 36,894 | $ | 33,470 | $ | 1,246 | $ | 2,178 | $ | 50,333 | $ | 41,301 | $ | 6,014 | $3,018 | ||||||||||||||||||||||||||
The table above discloses the net gain or loss, prior service cost, and transition amount 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 5 – Other Comprehensive Income and Accumulated Other Comprehensive Income (“AOCI”). | |||||||||||||||||||||||||||||||||||||||||||||||||
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 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 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, 2014 and December 31, 2013. The SERP has no assets. There were no transfers between Levels 1 and 2 during 2014. | |||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Qualified | PBOP | Total | Qualified | PBOP | Total | ||||||||||||||||||||||||||||||||||||||||||||
Retirement | Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Plan | Plan | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets at fair value (thousands of dollars): | |||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 – Quoted prices in active markets for identical financial assets | |||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | |||||||||||||||||||||||||||||||||||||||||||||||||
Agriculture | $ | 6,661 | $ | 198 | $ | 6,859 | $ | 8,224 | $ | 244 | $ | 8,468 | |||||||||||||||||||||||||||||||||||||
Capital equipment | 2,222 | 66 | 2,288 | 3,891 | 115 | 4,006 | |||||||||||||||||||||||||||||||||||||||||||
Chemicals/materials | 5,233 | 155 | 5,388 | 8,228 | 244 | 8,472 | |||||||||||||||||||||||||||||||||||||||||||
Consumer goods | 41,731 | 1,238 | 42,969 | 54,329 | 1,611 | 55,940 | |||||||||||||||||||||||||||||||||||||||||||
Energy and mining | 18,502 | 549 | 19,051 | 36,126 | 1,071 | 37,197 | |||||||||||||||||||||||||||||||||||||||||||
Finance/insurance | 20,685 | 613 | 21,298 | 37,643 | 1,116 | 38,759 | |||||||||||||||||||||||||||||||||||||||||||
Healthcare | 37,846 | 1,122 | 38,968 | 40,426 | 1,199 | 41,625 | |||||||||||||||||||||||||||||||||||||||||||
Information technology | 25,881 | 767 | 26,648 | 24,636 | 731 | 25,367 | |||||||||||||||||||||||||||||||||||||||||||
Services | 28,846 | 855 | 29,701 | 31,212 | 926 | 32,138 | |||||||||||||||||||||||||||||||||||||||||||
Telecommunications/internet/media | 18,498 | 549 | 19,047 | 24,270 | 720 | 24,990 | |||||||||||||||||||||||||||||||||||||||||||
Other | 10,958 | 325 | 11,283 | 16,455 | 488 | 16,943 | |||||||||||||||||||||||||||||||||||||||||||
Real estate investment trusts | 5,713 | 169 | 5,882 | 5,779 | 171 | 5,950 | |||||||||||||||||||||||||||||||||||||||||||
Mutual funds | 86,159 | 24,567 | 110,726 | 76,764 | 22,495 | 99,259 | |||||||||||||||||||||||||||||||||||||||||||
Government fixed income securities | 44,694 | 1,325 | 46,019 | 34,495 | 1,023 | 35,518 | |||||||||||||||||||||||||||||||||||||||||||
Preferred securities | 568 | 17 | 585 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total Level 1 Assets (1) | $ | 354,197 | $ | 32,515 | $ | 386,712 | $ | 402,478 | $ | 32,154 | $ | 434,632 | |||||||||||||||||||||||||||||||||||||
Level 2 – Significant other observable inputs | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | $ | — | $ | — | $ | — | $ | 1,411 | $ | 42 | $ | 1,453 | |||||||||||||||||||||||||||||||||||||
Government fixed income and mortgage backed securities | 48,312 | 1,433 | 49,745 | 49,298 | 1,462 | 50,760 | |||||||||||||||||||||||||||||||||||||||||||
Corporate fixed income securities | |||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed and mortgage-backed | 27,071 | 803 | 27,874 | 20,697 | 614 | 21,311 | |||||||||||||||||||||||||||||||||||||||||||
Banking | 23,289 | 691 | 23,980 | 19,004 | 564 | 19,568 | |||||||||||||||||||||||||||||||||||||||||||
Insurance | 6,182 | 183 | 6,365 | 6,481 | 192 | 6,673 | |||||||||||||||||||||||||||||||||||||||||||
Utilities | 4,232 | 126 | 4,358 | 5,278 | 156 | 5,434 | |||||||||||||||||||||||||||||||||||||||||||
Other | 23,120 | 686 | 23,806 | 19,649 | 582 | 20,231 | |||||||||||||||||||||||||||||||||||||||||||
Pooled funds and mutual funds | 11,968 | 984 | 12,952 | 8,111 | 1,150 | 9,261 | |||||||||||||||||||||||||||||||||||||||||||
State and local obligations | 1,499 | 44 | 1,543 | 1,370 | 41 | 1,411 | |||||||||||||||||||||||||||||||||||||||||||
Total Level 2 assets (2) | $ | 145,673 | $ | 4,950 | $ | 150,623 | $ | 131,299 | $ | 4,803 | $ | 136,102 | |||||||||||||||||||||||||||||||||||||
Level 3 – Significant unobservable inputs | |||||||||||||||||||||||||||||||||||||||||||||||||
Commingled equity funds | $ | 259,235 | $ | 7,687 | $ | 266,922 | $ | 189,452 | $ | 5,618 | $ | 195,070 | |||||||||||||||||||||||||||||||||||||
Total Level 3 assets (3) | $ | 259,235 | $ | 7,687 | $ | 266,922 | $ | 189,452 | $ | 5,618 | $ | 195,070 | |||||||||||||||||||||||||||||||||||||
Total Plan assets at fair value | $ | 759,105 | $ | 45,152 | $ | 804,257 | $ | 723,229 | $ | 42,575 | $ | 765,804 | |||||||||||||||||||||||||||||||||||||
Insurance company general account contracts (4) | 4,003 | — | 4,003 | 4,296 | — | 4,296 | |||||||||||||||||||||||||||||||||||||||||||
Total Plan assets (5) | $ | 763,108 | $ | 45,152 | $ | 808,260 | $ | 727,525 | $ | 42,575 | $ | 770,100 | |||||||||||||||||||||||||||||||||||||
-1 | Common stock, Real Estate Investment Trusts, Mutual funds, and U.S. Government securities listed or regularly traded on a national securities exchange are valued at quoted market prices as of the last business day of the calendar year. | ||||||||||||||||||||||||||||||||||||||||||||||||
The Mutual funds category above is an intermediate-term bond fund whose manager employs multiple concurrent strategies and takes only moderate risk in each, thereby reducing the risk of poor performance arising from any single source, and a balanced fund that invests in a diversified portfolio of common stocks, preferred stocks and fixed-income securities. Strategies utilized by the bond fund include duration management, yield curve or maturity structuring, sector rotation, and all bottom-up techniques including in-house credit and quantitative research. Strategies employed by the balanced fund include pursuit of regular income, conservation of principal, and an opportunity for long-term growth of principal and income. | |||||||||||||||||||||||||||||||||||||||||||||||||
-2 | The fair value of investments in debt securities with remaining maturities of one year or more is determined by dealers who make markets in such securities or by an independent pricing service, which considers yield or price of bonds of comparable quality, coupon, maturity, and type. | ||||||||||||||||||||||||||||||||||||||||||||||||
The pooled funds and mutual funds are two collective short-term funds that invest in Treasury bills and money market funds. These funds are used as a temporary cash repository for the pension plan’s various investment managers. | |||||||||||||||||||||||||||||||||||||||||||||||||
-3 | Assets not considered Level 1 or Level 2 are valued using assumptions based on the best information available under the circumstances, such as investment manager pricing. | ||||||||||||||||||||||||||||||||||||||||||||||||
The commingled equity funds include private equity funds that invest in domestic and international securities (predominately Level 1 assets) regularly traded on securities exchanges. These funds are shown in the above table at net asset value. Investment strategies employed by the funds include: | |||||||||||||||||||||||||||||||||||||||||||||||||
• | Domestic large capitalization value equities | ||||||||||||||||||||||||||||||||||||||||||||||||
• | International developed countries value and growth equities | ||||||||||||||||||||||||||||||||||||||||||||||||
• | Emerging markets equities | ||||||||||||||||||||||||||||||||||||||||||||||||
• | International small capitalization equities | ||||||||||||||||||||||||||||||||||||||||||||||||
The terms and conditions under which shares in the commingled equity funds may be redeemed vary among the funds; the notice required ranges from one day to 30 days prior to the valuation date (month end). One of the commingled equity funds requires the payment of a minimal impact fee to be applied to redemptions and subscriptions of $5 million or greater; the relative fee diminishes the greater the transaction. Other such funds may impose fees to recover direct costs incurred by the fund at redemption, but are indeterminable prior to redemption. | |||||||||||||||||||||||||||||||||||||||||||||||||
-4 | 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. | ||||||||||||||||||||||||||||||||||||||||||||||||
-5 | The assets in the above table exceed the market value of plan assets shown in the funded status table by $8,572,000 (qualified retirement plan – $8,312,000, PBOP – $260,000) and $7,842,000 (qualified retirement plan – $7,581,000, PBOP – $261,000) for 2014 and 2013, respectively, which includes a payable for securities purchased, partially offset by receivables for interest, dividends, and securities sold. | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||||||
Commingled Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Funds | |||||||||||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars): | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 127,467 | |||||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets still held at the reporting date | 21,903 | ||||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets sold during the period | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 45,700 | ||||||||||||||||||||||||||||||||||||||||||||||||
Sales | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2013 | 195,070 | ||||||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets still held at the reporting date | (6,932 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets sold during the period | 2,069 | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 82,615 | ||||||||||||||||||||||||||||||||||||||||||||||||
Sales | (5,900 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Settlements | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2014 | $ | 266,922 | |||||||||||||||||||||||||||||||||||||||||||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||
Stock-Based Compensation | Note 10 – Stock-Based Compensation | ||||||||||||||||||||||||
At December 31, 2014, the Company had three stock-based compensation plans: a stock option plan, a performance share stock plan which includes a cash award, and a restricted stock/unit plan. The table below shows total stock-based plan compensation expense, including the cash award, which was recognized in the consolidated statements of income (in thousands): | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Stock-based compensation plan expense, net of related tax benefits | $ | 8,130 | $ | 8,012 | $ | 7,396 | |||||||||||||||||||
Stock-based compensation plan related tax benefits | 4,983 | 4,910 | 4,533 | ||||||||||||||||||||||
Under the option plan, the Company previously granted options to purchase shares of common stock, to key employees and outside directors. The last option grants were in 2006 and no future grants are anticipated. Each option has an exercise price equal to the market price of Company common stock on the date of grant and a maximum term of ten years. | |||||||||||||||||||||||||
The following tables summarize Company stock option plan activity and related information (thousands of options): | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Number of | Weighted- | Number of | Weighted- | Number of | Weighted- | ||||||||||||||||||||
options | average | options | average | options | average | ||||||||||||||||||||
exercise price | exercise price | exercise price | |||||||||||||||||||||||
Outstanding at the beginning of the year | 52 | $ | 27.57 | 125 | $ | 28.13 | 177 | $ | 27.28 | ||||||||||||||||
Exercised during the year | (16 | ) | 24.31 | (72 | ) | 28.44 | (52 | ) | 25.25 | ||||||||||||||||
Forfeited or expired during the year | — | — | (1 | ) | 33.07 | — | — | ||||||||||||||||||
Outstanding and exercisable at year end | 36 | $ | 28.97 | 52 | $ | 27.57 | 125 | $ | 28.13 | ||||||||||||||||
The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The aggregate intrinsic value of outstanding and exercisable options, and options that were exercised, are presented in the table below (in thousands): | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Outstanding and exercisable | $ | 1,194 | $ | 1,473 | $ | 1,788 | |||||||||||||||||||
Exercised | 451 | 1,402 | 928 | ||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||
Market value of Southwest Gas stock | $ | 61.81 | $ | 55.91 | $ | 42.41 | |||||||||||||||||||
The weighted-average remaining contractual life for outstanding options was one year for 2014. All outstanding options are fully vested and exercisable. The following table summarizes information about stock options outstanding at December 31, 2014 (thousands of options): | |||||||||||||||||||||||||
Options Outstanding and Exercisable | |||||||||||||||||||||||||
Range of | Number outstanding | Weighted-average | Weighted-average | ||||||||||||||||||||||
Exercise Price | remaining contractual life | exercise price | |||||||||||||||||||||||
$25.00 to $26.10 | 17 | 0.5 Years | $ | 25.71 | |||||||||||||||||||||
$29.08 to $33.07 | 19 | 1.5 Years | $ | 31.83 | |||||||||||||||||||||
The Company received $379,000 in cash from the exercise of options during 2014 and a corresponding tax benefit of $167,000 which was recorded in additional paid-in capital. | |||||||||||||||||||||||||
Under the performance share stock plan, the Company may issue performance shares to encourage key employees to remain in its employment and to achieve short-term and long-term performance goals. Plan participants are eligible to receive a cash bonus (i.e., short-term incentive) and performance shares (i.e., long-term incentive). The performance shares vest three years after grant (and are subject to a final adjustment as determined by the Board of Directors) and are then issued as common stock. | |||||||||||||||||||||||||
The Company awards restricted stock/units under the restricted stock/unit plan to attract, motivate, retain, and reward key employees with an incentive to attain high levels of individual performance and improved financial performance of the Company. The restricted stock/units vest 40% at the end of year one and 30% at the end of years two and three and are 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 occurs immediately upon grant. The issuance of common stock for directors occurs when their service on the Board ends. | |||||||||||||||||||||||||
The following table summarizes the activity of the performance share stock and restricted stock/unit plans as of December 31, 2014 (thousands of shares): | |||||||||||||||||||||||||
Performance | Weighted- | Restricted | Weighted- | ||||||||||||||||||||||
Shares | average | Stock/ | average | ||||||||||||||||||||||
grant date | Units | grant date | |||||||||||||||||||||||
fair value | fair value | ||||||||||||||||||||||||
Nonvested/unissued at beginning of year | 323 | $ | 39.16 | 245 | $ | 38 | |||||||||||||||||||
Granted | 77 | 53.73 | 83 | 53.73 | |||||||||||||||||||||
Dividends | 7 | 7 | |||||||||||||||||||||||
Forfeited or expired | — | — | — | — | |||||||||||||||||||||
Vested and issued* | (136 | ) | 36.23 | (78 | ) | 40.87 | |||||||||||||||||||
Nonvested/unissued at December 31, 2014 | 271 | $ | 43.71 | 257 | $ | 41.22 | |||||||||||||||||||
* | Includes shares for retiree payouts and those converted for taxes. | ||||||||||||||||||||||||
The average grant date fair value of performance shares and restricted stock/units granted in 2013 and 2012 was $44.83 and $41.34, respectively. | |||||||||||||||||||||||||
As of December 31, 2014, total compensation cost related to nonvested performance shares and restricted stock/units not yet recognized is $2.9 million. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Note 11 – Income Taxes | ||||||||||||
The following is a summary of income before taxes and noncontrolling interest for domestic and foreign operations (thousands of dollars): | |||||||||||||
Year ended December 31, | 2014 | 2013 | 2012 | ||||||||||
U.S. | $ | 221,471 | $ | 222,815 | $ | 207,915 | |||||||
Foreign | (1,950 | ) | — | — | |||||||||
Total income before income taxes | $ | 219,521 | $ | 222,815 | $ | 207,915 | |||||||
Income tax expense (benefit) consists of the following (thousands of dollars): | |||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
Federal | $ | 1,739 | $ | 3,549 | $ | 2,296 | |||||||
State | 5,073 | 5,107 | 5,744 | ||||||||||
Foreign | 2,193 | — | — | ||||||||||
9,005 | 8,656 | 8,040 | |||||||||||
Deferred: | |||||||||||||
Federal | 71,439 | 67,414 | 65,551 | ||||||||||
State | 614 | 1,872 | 1,685 | ||||||||||
Foreign | (2,685 | ) | — | — | |||||||||
69,368 | 69,286 | 67,236 | |||||||||||
Total income tax expense | $ | 78,373 | $ | 77,942 | $ | 75,276 | |||||||
Deferred income tax expense (benefit) consists of the following significant components (thousands of dollars): | |||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Deferred federal and state: | |||||||||||||
Property-related items | $ | 52,814 | $ | 62,737 | $ | 64,249 | |||||||
Purchased gas cost adjustments | 15,049 | 16,189 | 1,755 | ||||||||||
Employee benefits | 109 | (2,769 | ) | 564 | |||||||||
All other deferred | 2,257 | (6,010 | ) | 1,529 | |||||||||
Total deferred federal and state | 70,229 | 70,147 | 68,097 | ||||||||||
Deferred ITC, net | (861 | ) | (861 | ) | (861 | ) | |||||||
Total deferred income tax expense | $ | 69,368 | $ | 69,286 | $ | 67,236 | |||||||
A reconciliation of the U.S. federal statutory rate to the consolidated effective tax rate for 2012, 2013, and 2014 (and the sources of these differences and the effect of each) are summarized as follows: | |||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
U.S. federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||||
Net state taxes | 1.9 | 2.4 | 2.6 | ||||||||||
Property-related items | 0.1 | 0.1 | 0.2 | ||||||||||
Tax credits | (0.5 | ) | (0.4 | ) | (0.4 | ) | |||||||
Company owned life insurance | (1.0 | ) | (2.1 | ) | (1.3 | ) | |||||||
All other differences | 0.2 | — | 0.1 | ||||||||||
Consolidated effective income tax rate | 35.7 | % | 35 | % | 36.2 | % | |||||||
Deferred tax assets and liabilities consist of the following (thousands of dollars): | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Deferred income taxes for future amortization of ITC | $ | 2,146 | $ | 2,679 | |||||||||
Employee benefits | 31,557 | 25,591 | |||||||||||
Alternative minimum tax credit | 20,172 | 19,739 | |||||||||||
Net operating losses and credits | 9,719 | 15,113 | |||||||||||
Interest rate swap | 8,622 | 9,893 | |||||||||||
Other | 25,872 | 22,334 | |||||||||||
Valuation allowance | (253 | ) | (200 | ) | |||||||||
97,835 | 95,149 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Property-related items, including accelerated depreciation | 736,810 | 694,024 | |||||||||||
Regulatory balancing accounts | 33,736 | 18,688 | |||||||||||
Property-related items previously flowed through | 28 | 836 | |||||||||||
Unamortized ITC | 3,410 | 4,271 | |||||||||||
Debt-related costs | 5,066 | 4,713 | |||||||||||
Intangibles | 12,792 | — | |||||||||||
Other | 27,572 | 15,898 | |||||||||||
819,414 | 738,430 | ||||||||||||
Net deferred tax liabilities | 721,579 | 643,281 | |||||||||||
Current | (2,109 | ) | (31,130 | ) | |||||||||
Noncurrent | 723,688 | 674,411 | |||||||||||
Net deferred tax liabilities | $ | 721,579 | $ | 643,281 | |||||||||
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, various states, and in Canada. The Company is currently under examination in Canada for years 2011 and 2012. With few exceptions, the Company is no longer subject to United States federal, state and local, or Canadian income tax examinations for years before 2010. | |||||||||||||
At December 31, 2014, the Company has a U.S. federal net operating loss carryforward of $28 million which expires in 2031. The Company also has federal general business credits of $711,000, which begin to expire in 2031. The Company also has U.S. federal net capital loss carryforwards of $494,000, which begin to expire in 2016. At December 31, 2014, the Company has an income tax net operating loss carryforward related to Canadian operations of $1.1 million which expires in 2034. | |||||||||||||
As of December 31, 2014, the Company sustained losses in its foreign jurisdiction and therefore has no undistributed foreign earnings. However, the Company intends to permanently reinvest any future foreign earnings in Canada. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (thousands of dollars): | |||||||||||||
2014 | 2013 | ||||||||||||
Unrecognized tax benefits at beginning of year | $ | — | $ | — | |||||||||
Gross increases-tax positions in prior period | 305 | — | |||||||||||
Gross decreases-tax positions in prior period | — | — | |||||||||||
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 | $ | 305 | $ | — | |||||||||
In assessing whether uncertain tax positions should be recognized in its financial statements, Southwest 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 evaluating whether a tax position has met the more-likely-than-not recognition threshold, Southwest 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, Southwest measures the amount of benefit recognized in the financial statements at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Southwest recognizes unrecognized tax benefits 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. Southwest’s measurement of its 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 limitations, identification of new issues, and any administrative guidance or developments | |||||||||||||
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $0 at December 31, 2014. No significant increases or decreases in unrecognized tax benefit are expected within the next 12 months. | |||||||||||||
The Company recognizes interest expense and income and penalties related to income tax matters in income tax expense. Tax-related interest income included in income tax expense in the consolidated statements of income is shown in the table below (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax-related interest income | $ | — | $ | — | $ | 24 | |||||||
Final and Proposed Income Tax Regulations. In September 2013, the United States Department of the Treasury and the Internal Revenue Service (“IRS”) issued final and proposed regulations for the tax treatment of tangible property. The final regulations include standards for determining whether and when a taxpayer must capitalize costs incurred in acquiring, maintaining, or improving tangible property. The final regulations are generally effective for tax years beginning on or after January 1, 2014, and were eligible for adoption in earlier years under certain circumstances. Proposed regulations were also released that revise the rules for dispositions of tangible property and general asset accounts. The Company expects the IRS to issue natural gas industry guidance which will facilitate its analysis regarding the regulations’ impact on natural gas distribution networks. Based upon preliminary analysis of the final and proposed regulations, and in anticipation of specific guidance for the natural gas industry, the Company expects the regulations could result in a modest acceleration of tax deductibility and the deferral of tax payments. |
Derivatives_and_Fair_Value_Mea
Derivatives and Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Derivatives and Fair Value Measurements | Note 12 – Derivatives and Fair Value Measurements | ||||||||||||||||
Derivatives. In managing its natural gas supply portfolios, Southwest has historically entered into fixed- and variable-price contracts, which qualify as derivatives. Additionally, Southwest utilizes fixed-for-floating swap contracts (“Swaps”) to supplement its fixed-price contracts. The fixed-price contracts, firm commitments to purchase a fixed amount of gas in the future at a fixed price, qualify for the normal purchases and normal sales exception that is allowed for contracts that are probable of delivery in the normal course of business, and are exempt from fair value reporting. The variable-price contracts have no significant market value. The Swaps are recorded at fair value. | |||||||||||||||||
In late 2013, the Company suspended further swaps and fixed-price purchases pursuant to the Volatility Mitigation Program (“VMP”) for its Nevada service territories. The decision did not impact previously executed purchase arrangements. Agreements, under the Nevada VMP program, made prior to the suspension will terminate following the March 2015 delivery month. The Company, along with its regulators, will continue to evaluate this strategy in light of prevailing or anticipated changing market conditions. | |||||||||||||||||
The fixed-price contracts and Swaps are utilized by Southwest under its ongoing volatility mitigation programs to effectively fix the price on a portion (for the 2014/2015 heating season, up to 25%, depending on the jurisdiction) of its natural gas supply portfolios. The maturities of the Swaps highly correlate to forecasted purchases of natural gas, during time frames ranging from January 2015 through March 2016. Under such contracts, Southwest pays the counterparty a fixed rate and receives from the counterparty a floating rate per MMBtu (“dekatherm”) of natural gas. Only the net differential is actually paid or received. The differential is calculated based on the notional amounts under the contracts, which are detailed in the table below (thousands of dekatherms): | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Contract notional amounts | 5,105 | 13,571 | |||||||||||||||
Southwest does not utilize derivative financial instruments for speculative purposes, nor does it have trading operations. | |||||||||||||||||
The following table sets forth the gains and (losses) recognized on the Company’s Swaps (derivatives) for the years ended December 31, 2014, 2013, and 2012 and their location in the Consolidated Statements of Income (thousands of dollars): | |||||||||||||||||
Gains (losses) recognized in income for derivatives not designated as hedging instruments: | |||||||||||||||||
(Thousands of dollars) | |||||||||||||||||
Instrument | Location of Gain or (Loss) | 2014 | 2013 | 2012 | |||||||||||||
Recognized in Income on Derivative | |||||||||||||||||
Swaps | Net cost of gas sold | $ | (2,363 | ) | $ | 976 | $ | (4,854 | ) | ||||||||
Swaps | Net cost of gas sold | 2,363 | * | (976 | )* | 4,854 | * | ||||||||||
Total | $ | — | $ | — | $ | — | |||||||||||
* Represents the impact of regulatory deferral accounting treatment under U.S. GAAP for rate-regulated entities. | |||||||||||||||||
In January 2010, Southwest entered into two forward-starting interest rate swaps (“FSIRS”), both of which were designated cash flow hedges, to partially hedge the risk of interest rate variability during the period leading up to the planned issuance of fixed-rate debt to replace maturing debt. The first FSIRS terminated in December 2010. The second FSIRS terminated in March 2012. At settlement of the second FSIRS, Southwest paid an aggregate $21.8 million to the counterparties. No gain or loss (ineffective portion) was recognized in income for either FSIRS during any period, including the period presented in the following table. | |||||||||||||||||
Gains (losses) recognized in other comprehensive income for derivatives designated as cash flow hedging instruments: | |||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||||||
(Thousands of dollars) | |||||||||||||||||
Amount of gain/(loss) realized/unrealized on FSIRS recognized in other comprehensive income on derivative | $ | — | $ | — | $ | 2,959 | |||||||||||
The following table sets forth the fair values of the Company’s Swaps and their location in the Consolidated Balance Sheets (thousands of dollars): | |||||||||||||||||
Fair values of derivatives not designated as hedging instruments: | |||||||||||||||||
December 31, 2014 | Balance Sheet Location | Asset | Liability | Net | |||||||||||||
Instrument | Derivatives | Derivatives | Total | ||||||||||||||
Swaps | Other current liabilities | $ | — | $ | (5,062 | ) | $ | (5,062 | ) | ||||||||
Swaps | Other deferred credits | — | (363 | ) | (363 | ) | |||||||||||
Total | $ | — | $ | (5,425 | ) | $ | (5,425 | ) | |||||||||
31-Dec-13 | Balance Sheet Location | Asset | Liability | Net | |||||||||||||
Instrument | Derivatives | Derivatives | Total | ||||||||||||||
Swaps | Deferred charges and other assets | $ | 257 | $ | (77 | ) | $ | 180 | |||||||||
Swaps | Prepaids and other current assets | 1,054 | (253 | ) | 801 | ||||||||||||
Swaps | Other current liabilities | 126 | (282 | ) | (156 | ) | |||||||||||
Swaps | Other deferred credits | 7 | (11 | ) | (4 | ) | |||||||||||
Total | $ | 1,444 | $ | (623 | ) | $ | 821 | ||||||||||
The estimated fair values of the natural gas derivatives were determined using future natural gas index prices (as more fully described below). The Company has master netting arrangements with each counterparty that provide for the net settlement of all contracts through a single payment. As applicable, the Company has elected to reflect the net amounts in its balance sheets. The Company had no outstanding collateral associated with the Swaps during either period shown in the above table. | |||||||||||||||||
Pursuant to regulatory deferral accounting treatment for rate-regulated entities, Southwest records the unrealized gains and losses in fair value of the Swaps as a regulatory asset and/or liability. When the Swaps mature, Southwest reverses any prior positions held and records the settled position as an increase or decrease of purchased gas under the related purchased gas adjustment (“PGA”) mechanism in determining its deferred PGA balances. Neither changes in fair value, nor settled amounts, of Swaps have a direct effect on earnings or other comprehensive income. | |||||||||||||||||
The following table shows the amounts Southwest paid to and received from counterparties for settlements of matured Swaps. | |||||||||||||||||
Year ended | Year ended | Year ended | |||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(Thousands of dollars) | |||||||||||||||||
Paid to counterparties | $ | 829 | $ | 3,148 | $ | 14,843 | |||||||||||
Received from counterparties | $ | 4,713 | $ | 915 | $ | 634 | |||||||||||
The following table details the regulatory assets/(liabilities) offsetting the derivatives at fair value in the Consolidated Balance Sheets (thousands of dollars). | |||||||||||||||||
December 31, 2014 | Balance Sheet Location | Net Total | |||||||||||||||
Instrument | |||||||||||||||||
Swaps | Prepaids and other current assets | $ | 5,062 | ||||||||||||||
Swaps | Deferred charges and other assets | 363 | |||||||||||||||
December 31, 2013 | Balance Sheet Location | Net Total | |||||||||||||||
Instrument | |||||||||||||||||
Swaps | Other deferred credits | $ | (180 | ) | |||||||||||||
Swaps | Other current liabilities | (801 | ) | ||||||||||||||
Swaps | Prepaids and other current assets | 156 | |||||||||||||||
Swaps | Deferred charges and other assets | 4 | |||||||||||||||
Fair Value Measurements. The estimated fair values of Southwest’s Swaps were determined at December 31, 2014 and 2013 using New York Mercantile Exchange (“NYMEX”) futures settlement prices for delivery of natural gas at Henry Hub adjusted by the price of NYMEX ClearPort basis Swaps, 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 (inputs, other than quoted prices, for similar assets or liabilities) are observable in the marketplace throughout the full term of the Swaps, but have been credit-risk adjusted with no significant impact to the overall fair value measure. | |||||||||||||||||
The following table sets forth, by level within the three-level fair value hierarchy that ranks the inputs used to measure fair value by their reliability, the Company’s financial assets and liabilities that were accounted for at fair value (see Note 9 – Pension and Other Post Retirement Benefits for definitions of the levels of the fair value hierarchy): | |||||||||||||||||
Level 2 - Significant other observable inputs | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
(Thousands of dollars) | |||||||||||||||||
Assets at fair value: | |||||||||||||||||
Prepaids and other current assets - Swaps | $ | — | $ | 801 | |||||||||||||
Deferred charges and other assets - Swaps | — | 180 | |||||||||||||||
Liabilities at fair value: | |||||||||||||||||
Other current liabilities - Swaps | (5,062 | ) | (156 | ) | |||||||||||||
Other deferred credits - Swaps | (363 | ) | (4 | ) | |||||||||||||
Net Assets (Liabilities) | $ | (5,425 | ) | $ | 821 | ||||||||||||
No financial assets or liabilities associated with the Swaps, which were accounted for at fair value, fell within Level 1 or Level 3 of the fair value hierarchy. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Information | Note 13 – Segment Information | ||||||||||||||||
Company 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 construction 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. | |||||||||||||||||
The accounting policies of the reported segments are the same as those described within Note 1 – Summary of Significant Accounting Policies. Centuri accounts for the services provided to Southwest at contractual (market) prices at contract inception. Accounts receivable for these services, which are not eliminated during consolidation, are presented in the table below (in thousands). | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Accounts receivable for Centuri services | $ | 9,169 | $ | 10,787 | |||||||||||||
The following table presents the amount of revenues and long-lived assets by geographic area (thousands of dollars): | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Revenues (a) | |||||||||||||||||
United States | $ | 2,069,513 | $ | 1,950,782 | |||||||||||||
Canada | 52,194 | — | |||||||||||||||
Total | $ | 2,121,707 | $ | 1,950,782 | |||||||||||||
Long-lived assets | |||||||||||||||||
United States | $ | 6,021,476 | 5,674,449 | ||||||||||||||
Canada | 14,475 | — | |||||||||||||||
Total | $ | 6,035,951 | $ | 5,674,449 | |||||||||||||
(a) | Revenues are attributed to countries based on the location of customers. | ||||||||||||||||
The financial information pertaining to the natural gas operations and construction services segments for each of the three years in the period ended December 31, 2014 is as follows (thousands of dollars): | |||||||||||||||||
2014 | Gas | Construction | Adjustments (a) | Total | |||||||||||||
Operations | Services | ||||||||||||||||
Revenues from unaffiliated customers | $ | 1,382,087 | $ | 647,432 | $ | 2,029,519 | |||||||||||
Intersegment sales | — | 92,188 | 92,188 | ||||||||||||||
Total | $ | 1,382,087 | $ | 739,620 | $ | 2,121,707 | |||||||||||
Interest revenue | $ | 2,596 | $ | 6 | $ | 2,602 | |||||||||||
Interest expense | $ | 68,299 | $ | 3,770 | $ | 72,069 | |||||||||||
Depreciation and amortization | $ | 204,144 | $ | 48,883 | $ | 253,027 | |||||||||||
Income tax expense | $ | 63,597 | $ | 14,776 | $ | 78,373 | |||||||||||
Segment net income | $ | 116,872 | $ | 24,254 | $ | 141,126 | |||||||||||
Segment assets | $ | 4,657,709 | $ | 567,405 | $ | (10,599 | ) | $ | 5,214,515 | ||||||||
Capital expenditures | $ | 350,025 | $ | 46,873 | $ | 396,898 | |||||||||||
2013 | Gas | Construction | Adjustments (b) | Total | |||||||||||||
Operations | Services | ||||||||||||||||
Revenues from unaffiliated customers | $ | 1,300,154 | $ | 562,475 | $ | 1,862,629 | |||||||||||
Intersegment sales | — | 88,153 | 88,153 | ||||||||||||||
Total | $ | 1,300,154 | $ | 650,628 | $ | 1,950,782 | |||||||||||
Interest revenue | $ | 456 | $ | 5 | $ | 461 | |||||||||||
Interest expense | $ | 62,555 | $ | 1,145 | $ | 63,700 | |||||||||||
Depreciation and amortization | $ | 193,848 | $ | 42,969 | $ | 236,817 | |||||||||||
Income tax expense | $ | 65,377 | $ | 12,565 | $ | 77,942 | |||||||||||
Segment net income | $ | 124,169 | $ | 21,151 | $ | 145,320 | |||||||||||
Segment assets | $ | 4,272,029 | $ | 293,811 | $ | (666 | ) | $ | 4,565,174 | ||||||||
Capital expenditures | $ | 314,578 | $ | 49,698 | $ | 364,276 | |||||||||||
2012 | Gas | Construction | Adjustments | Total | |||||||||||||
Operations | Services | ||||||||||||||||
Revenues from unaffiliated customers | $ | 1,321,728 | $ | 522,676 | $ | 1,844,404 | |||||||||||
Intersegment sales | — | 83,374 | 83,374 | ||||||||||||||
Total | $ | 1,321,728 | $ | 606,050 | $ | 1,927,778 | |||||||||||
Interest revenue | $ | 915 | $ | 9 | $ | 924 | |||||||||||
Interest expense | $ | 66,957 | $ | 1,063 | $ | 68,020 | |||||||||||
Depreciation and amortization | $ | 186,035 | $ | 37,387 | $ | 223,422 | |||||||||||
Income tax expense | $ | 64,973 | $ | 10,303 | $ | 75,276 | |||||||||||
Segment net income | $ | 116,619 | $ | 16,712 | $ | 133,331 | |||||||||||
Segment assets | $ | 4,204,948 | $ | 283,109 | $ | 4,488,057 | |||||||||||
Capital expenditures | $ | 308,951 | $ | 86,761 | $ | 395,712 | |||||||||||
(a) | Construction services segment assets include two liabilities that were netted against gas operations segment assets during consolidation in 2014. They are: Income taxes payable of $3.3 million, netted against income taxes receivable, net and deferred income taxes of $1.4 million, netted against deferred income taxes, net. Construction services segment assets exclude a long-term deferred tax benefit of $1.4 million, which was netted against gas operations segment deferred income taxes and investment tax credits, net during consolidation. Gas operations segment assets include a deferred income tax liability of $4.5 million, which was netted against a construction services segment asset for deferred income taxes, net during consolidation. | ||||||||||||||||
(b) | Construction services segment assets include income taxes payable of $666,000 in 2013, which was netted against gas operations segment income taxes receivable, net during consolidation. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Data | Note 14 – Quarterly Financial Data (Unaudited) | ||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
(Thousands of dollars, except per share amounts) | |||||||||||||||||
2014 | |||||||||||||||||
Operating revenues | $ | 608,396 | $ | 453,153 | $ | 432,475 | $ | 627,683 | |||||||||
Operating income | 127,065 | 26,755 | 18,290 | 112,373 | |||||||||||||
Net income | 70,697 | 9,627 | 1,927 | 58,897 | |||||||||||||
Net income attributable to Southwest Gas Corporation | 70,783 | 9,627 | 1,970 | 58,746 | |||||||||||||
Basic earnings per common share* | 1.52 | 0.21 | 0.04 | 1.26 | |||||||||||||
Diluted earnings per common share* | 1.51 | 0.21 | 0.04 | 1.25 | |||||||||||||
2013 | |||||||||||||||||
Operating revenues | $ | 613,505 | $ | 411,574 | $ | 387,346 | $ | 538,357 | |||||||||
Operating income | 138,394 | 28,908 | 6,141 | 100,772 | |||||||||||||
Net income (loss) | 80,674 | 10,067 | (3,057 | ) | 57,189 | ||||||||||||
Net income (loss) attributable to Southwest Gas Corporation | 80,773 | 10,108 | (2,864 | ) | 57,303 | ||||||||||||
Basic earnings (loss) per common share* | 1.75 | 0.22 | (0.06 | ) | 1.24 | ||||||||||||
Diluted earnings (loss) per common share* | 1.73 | 0.22 | (0.06 | ) | 1.22 | ||||||||||||
2012 | |||||||||||||||||
Operating revenues | $ | 657,645 | $ | 409,768 | $ | 371,799 | $ | 488,566 | |||||||||
Operating income | 134,623 | 15,380 | 6,310 | 115,211 | |||||||||||||
Net income (loss) | 78,835 | (3,888 | ) | (4,414 | ) | 62,106 | |||||||||||
Net income (loss) attributable to Southwest Gas Corporation | 78,919 | (3,676 | ) | (4,305 | ) | 62,393 | |||||||||||
Basic earnings (loss) per common share* | 1.71 | (0.08 | ) | (0.09 | ) | 1.35 | |||||||||||
Diluted earnings (loss) per common share* | 1.7 | (0.08 | ) | (0.09 | ) | 1.34 | |||||||||||
* | 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 outstanding. | ||||||||||||||||
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 the operations of the Company. Also, the timing of general rate relief can have a significant impact on earnings for interim periods. See Management’s Discussion and Analysis for additional discussion of operating results. Additionally, see Note 15 – Acquisition of Construction Services Businesses below regarding an acquisition in the last quarter of 2014 and see Note-16 – Construction Services Noncontrolling Interests regarding allocation of earnings. |
Acquisition_of_Construction_Se
Acquisition of Construction Services Businesses | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Acquisition of Construction Services Businesses | Note 15 – Acquisition of Construction Services Businesses | ||||||||
As indicated in Note 1 – Summary of Significant Accounting Policies, under Consolidation, the Company, through its subsidiaries, completed the acquisition of three privately held, affiliated construction businesses for $221 million. Previous owners of the acquired companies retained an approximate 10% interest in the Canadian subsidiaries of Centuri. | |||||||||
Assets acquired and liabilities assumed in the transaction were recorded, generally, at their acquisition date fair values. Transaction costs associated with the acquisition were expensed as incurred. The Company’s allocation of the purchase price was based on an evaluation of the appropriate fair values and represented management’s best estimate based on available data (including market data, data regarding customers of the acquired businesses, terms of acquisition-related agreements, analysis of historical and projected results, and other types of data). The analysis included the impacts of differences between Accounting Standards for Private Enterprises in Canada and U. S. GAAP applicable to public companies, as well as consideration of types of intangibles that were acquired, including non-competition agreements, customer relationships, trade names, and work backlog. The final purchase accounting has not yet been completed. Further refinement is expected to occur, including changes to income taxes and intangibles. However, no material changes are expected. The preliminary estimated fair values of assets acquired and liabilities assumed as of October 1, 2014, are as follows (in millions of dollars): | |||||||||
Cash, cash equivalents, and restricted cash | $ | 3 | |||||||
Contracts receivable and other receivables | 62 | ||||||||
Property, plant and equipment | 17 | ||||||||
Other assets | 17 | ||||||||
Intangible assets | 52 | ||||||||
Goodwill | 130 | ||||||||
Total assets acquired | 281 | ||||||||
Current liabilities | 39 | ||||||||
Deferred income tax—long-term | 17 | ||||||||
Other long-term liabilities | 4 | ||||||||
Net assets acquired | $ | 221 | |||||||
Acquired contracts receivable and other receivables are expected to be collected. | |||||||||
The preliminary allocation of the purchase price of Link-Line, W.S. Nicholls, and Brigadier was accounted for in accordance with the applicable accounting guidance. Goodwill, which is generally not deductible for tax purposes, consists of the value associated with the assembled workforce and consolidation of operations. The business of Brigadier was acquired via asset purchase. Therefore, the $4.9 million of tax-basis goodwill assigned to Brigadier is expected to be deductible for tax purposes. All other goodwill associated with the acquisition is not deductible for tax purposes. At December 31, 2014, the balance of goodwill associated with the acquisition was $125 million after consideration of changes in foreign currency adjustments. At December 31, 2014, other intangible assets totaled $48.2 million (after foreign currency adjustments of $1.9 million and approximately $1.5 million accumulated amortization). Intangible assets (as of December 2014) consist of $500,000 in non-competition agreements (net of approximately $40,000 of accumulated amortization, with a 5-year weighted-average useful life), $36.5 million in customer relationships (net of approximately $550,000 accumulated amortization, with useful lives ranging from 12 to 21 years), $10 million in trade names (net of approximately $250,000 accumulated amortization, with useful lives ranging from 4 to 20 years), and $1.2 million in work backlog (net of approximately $700,000 accumulated amortization, with an 8-month useful life). The intangible assets other than goodwill are included in Other property and investments in the Consolidated Balance Sheets. The estimated future amortization of the intangible assets acquired in the acquisition for the next five years is as follows (in thousands): | |||||||||
2015 | $ | 4,615 | |||||||
2016 | 3,371 | ||||||||
2017 | 3,371 | ||||||||
2018 | 3,123 | ||||||||
2019 | 2,370 | ||||||||
In connection with the acquisition, previous owners retained certain ownership rights, specifically, an approximate 10% stock ownership interest in the associated Canadian businesses. However, while the actual ownership interest was approximately 10% of Lynxus (Canadian operations), the terms of the underlying equity agreements include dividend participation rights equal to 3.4% of dividends declared at the level of Centuri. Additionally, these same agreements include, among other terms, the ability of the prior owners to exit their investment retained by requiring Centuri to purchase a portion of their interest (in Lynxus) commencing October 2016 and in incremental amounts each anniversary date thereafter. The shares subject to the election cumulate (if earlier elections are not made) such that 100% of their interest retained is subject to the election after September 2021. Furthermore, the equity agreements include an exchange feature such that the noncontrolling ownership interest retained by the parties, in the Canadian subsidiaries, may be convertible into shares equivalent to a 3.4% interest in Centuri (redeemable noncontrolling interest). In consideration of these circumstances and the underlying agreements, it was deemed appropriate to allocate earnings to the redeemable noncontrolling interest at an amount equivalent to approximately 3.4% of total Centuri earnings (rather than based on the actual current proportional ownership). Through this earnings allocation process, approximately 96.6% of Centuri earnings are attributable to the Company. This earnings allocation takes place before the redeemable noncontrolling interest balance, included on the balance sheet, is adjusted based on its redemption value. Adjustments to redemption value through December 31, 2014 impacted retained earnings but not current net income. See also Earnings Per Share included within Note 1, and discussion below regarding adjustment to fair value, as well as Note 16 – Construction Services Noncontrolling Interests for more information. | |||||||||
The unaudited pro forma consolidated financial information for fiscal 2014 and fiscal 2013 (assuming the acquisition of Link-Line, W.S. Nicholls, and Brigadier occurred as of the beginning fiscal 2013) is as follows (in thousands of dollars, except per share amounts): | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Total operating revenues | $ | 2,295,318 | $ | 2,203,272 | |||||
Net income attributable to Southwest Gas Corporation | $ | 149,588 | $ | 143,424 | |||||
Basic earnings per share | $ | 3.22 | $ | 3.1 | |||||
Diluted earnings per share | $ | 3.19 | $ | 3.07 | |||||
Acquisition costs of $5 million that were incurred during 2014, and included in construction expenses in the Consolidated Statements of Income, were excluded from the 2014 unaudited pro forma consolidated financial information shown above and included in the 2013 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 intercompany eliminations 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 or of the 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 businesses. | |||||||||
Actual results from Link-Line, W.S. Nicholls, and Brigadier operations included in the Consolidated Statements of Income since the date of acquisition are as follows (in thousands of dollars): | |||||||||
Year ended | |||||||||
December 31, 2014 | |||||||||
Construction revenues | $ | 54,264 | |||||||
Net income attributable to Link-Line, W.S. Nicholls, and Brigadier | $ | 1,859 |
Construction_Services_Noncontr
Construction Services Noncontrolling Interests | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Noncontrolling Interest [Abstract] | |||||
Construction Services Noncontrolling Interests | Note 16 – Construction Services Noncontrolling Interests | ||||
As discussed in Note 15 – Acquisition of Construction Services Businesses, at the close of the acquisition, previous owners of the acquired companies retained an approximate 10% equity interest in the Canadian businesses that were acquired. The agreement, associated with the approximate 10% indirect equity interest of the sellers, provides special dividend rights which entitle the sellers, as holders, to dividends equal to 3.4% of dividends paid at the level of Centuri and subject to certain conditions, such interests may become exchangeable for a 3.4% equity interest in Centuri. Additionally, the previous owners may exit their investment retained by requiring Centuri to purchase a portion of their interest (in Lynxus) commencing October 2016 and in incremental amounts each anniversary date thereafter. The shares subject to the election cumulate (if earlier elections are not made) such that 100% of their interest retained is subject to the election after September 2021. | |||||
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 Consolidated Balance Sheets. The redeemable noncontrolling interest is reported at $20 million, the estimated redemption value as of December 31, 2014. Based on the fair value model employed, the estimated redemption value of the redeemable noncontrolling interest increased by approximately $961,000 during the fourth quarter of 2014. Changes in the value of the redeemable noncontrolling interest will be recognized as they occur and the carrying value will be adjusted accordingly at each quarterly reporting date. Any adjustment to the redemption value impacts retained earnings, but does not impact net income. | |||||
Redeemable | |||||
Noncontrolling | |||||
Interest | |||||
(Thousands of dollars): | |||||
Balance, December 31, 2013 | $ | — | |||
Redeemable noncontrolling interest related to acquisition | 18,952 | ||||
Net Income (loss) attributable to redeemable noncontrolling interest | 151 | ||||
Foreign currency exchange translation adjustment | (22 | ) | |||
Adjustment to redemption value | 961 | ||||
Balance, December 31, 2014 | $ | 20,042 | |||
The redemption value of the redeemable noncontrolling interest was determined using a Monte Carlo simulation method. First, a market approach was utilized to determine a construction services enterprise value as of the acquisition date. Potential guideline publicly-traded companies were identified by using a selection criteria, including actively traded equities, their financial solvency, and other factors. Once the guideline companies were determined, enterprise value was calculated using a weighted approach of projected earnings before interest expense and taxes (“EBIT”) and earnings before interest expense, taxes, and depreciation and amortization expense (“EBITDA”). After an estimated fair value was determined, a Monte Carlo simulation was used to assign a value to the noncontrolling interest of the sellers. Other assumptions used in this analysis included dividends, probability of events, and a discount due to lack of control (the sellers do not influence operations). | |||||
Centuri also holds a 65% interest in a venture to market natural gas engine-driven heating, ventilating, and air conditioning (“HVAC”) technology and products. Centuri consolidates the entity (IntelliChoice Energy, LLC) as a majority-owned subsidiary. The interest is immaterial to the consolidated financial statements. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Nature of Operations | Nature of Operations. Southwest Gas Corporation and its subsidiaries (the “Company”) consist of two segments: natural gas operations (“Southwest” or the “natural gas operations” segment) and construction services. 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. Centuri Construction Group Inc. (“Centuri” or the “construction services” segment), a wholly owned subsidiary, is a full-service underground piping contractor that primarily provides utility companies with trenching and installation, replacement, and maintenance services for energy distribution systems, and industrial construction solutions. Centuri operations are generally conducted under the business names of NPL Construction Co., Link-Line, W.S. Nicholls, and Brigadier. | ||||||||||||
Basis of Presentation | Basis of Presentation. The Company follows generally accepted accounting principles 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 the natural gas utility operations conforms with U.S. GAAP as applied to 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. | ||||||||||||
Consolidation | Consolidation. The accompanying financial statements are presented on a consolidated basis and include the accounts of Southwest Gas Corporation and all subsidiaries (except those accounted for using the equity method as discussed further 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. | ||||||||||||
In October 2014, the Company, through its subsidiaries, led principally by NPL Construction Co., completed the acquisition of three privately held, affiliated construction businesses for approximately US$221 million. Additional consideration will be paid or accrued through the true-up period. The acquisition extends the construction services operations into Canada and provides additional opportunities for market expansion. Funding for the acquisition was primarily provided by a new $300 million secured revolving credit and term loan facility described in Note 6 – Long-Term Debt. The acquired companies comprise: (i) Link-Line Contractors Ltd., an Ontario corporation (“Link-Line”) that provides construction and maintenance services for the Canadian utility industry, with operations primarily in Ontario, Canada; (ii) W.S. Nicholls Construction, Inc., an Ontario corporation, as well as two additional companies also operating under the name W.S. Nicholls, which together provide industrial construction solutions, fabrication, and civil services to the oil and gas, pulp and paper, and automotive industries, as well as government and private sector customers in British Columbia and Ontario, Canada (collectively “W.S. Nicholls”); and (iii) via asset purchase, the business of Brigadier Pipelines Inc., a Delaware corporation, operating primarily in Pennsylvania as a specialty midstream pipeline contractor (“Brigadier”). | |||||||||||||
In October 2014, upon completion of the acquisition, the Company restructured its ownership of NPL Construction Co. and Carson Water Company (an inactive wholly owned subsidiary) creating a holding company, a direct subsidiary of Carson Water Company. In January 2015, the holding company was renamed Centuri. In addition, two direct subsidiaries exist under Centuri: Vistus Construction Group Inc. (“Vistus”, U.S. operations) and Lynxus Construction Group Inc. (“Lynxus”, Canadian operations). Three subsidiaries exist under Vistus: NPL Construction Co., Southwest Administrators, and Brigadier Pipelines Inc. Link-Line and W.S. Nicholls are subsidiaries of Lynxus. | |||||||||||||
Lynxus, including its subsidiaries of Link-Line, W.S. Nicholls, WSN Construction and WSN Industries will be consolidated under the voting interest method of accounting. Brigadier will be consolidated under the voting interest method. | |||||||||||||
Centuri, through its subsidiaries, holds a 65% interest in a venture to market natural gas engine-driven heating, ventilating, and air conditioning (“HVAC”) technology and products. Centuri consolidates the entity (IntelliChoice Energy, LLC) as a majority-owned subsidiary. Centuri, through its subsidiaries, holds a 50% interest in W.S. Nicholls Western Construction LTD. (“Western”), a Canadian construction 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 Company’s investment in Western is not significant in relation to its total assets included in the Consolidated Balance Sheets. At December 31, 2014, Centuri’s investment in Western is $14.7 million and its maximum exposure to loss as a result of its involvement with the entity is estimated at $20.8 million, including obligations under a construction bonding arrangement under which Centuri has guaranteed the performance on certain projects of Western. The estimated maximum exposure to loss represents the maximum loss that would be absorbed by Centuri in the event that all of the assets of Western are deemed worthless. | |||||||||||||
Centuri, through its subsidiaries, also has a 25% interest in CCI-TBN Toronto, Inc. and a 50% interest in Matheson-Nicholls Joint Venture. Any future changes to the values of these entities will be recorded by Centuri using the equity method. The equity method investment in Western is included in Other Property and Investments in the 2014 Consolidated Balance Sheet. | |||||||||||||
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 includes contracted services, material, payroll and related costs such as taxes and 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. Other property and investments includes (millions of dollars): | ||||||||||||
2014 | 2013 | ||||||||||||
Centuri property, equipment, and intangibles | $ | 405 | $ | 320 | |||||||||
Centuri accumulated provision for depreciation and amortization | (187 | ) | (163 | ) | |||||||||
Net cash surrender value of COLI policies | 99 | 93 | |||||||||||
Other property | 10 | 11 | |||||||||||
Total | $ | 327 | $ | 261 | |||||||||
Restricted Cash | Restricted Cash. A construction bond that was required to be in place during the completion of one of Centuri’s construction projects is classified in the Consolidated Balance Sheets as restricted cash. The project is expected to be completed within one year. The restricted cash was acquired in conjunction with the acquisition of construction services businesses. See Note 15 – Acquisition of Construction Services Businesses for more information. | ||||||||||||
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 | Prepaids and other current assets. Prepaids and other current assets includes gas pipe inventory and operating supplies of $23 million in 2014 and $21 million in 2013. | ||||||||||||
Income Taxes | Income Taxes. The Company uses the asset and liability method of accounting for 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, 2014, the Company sustained losses in its foreign jurisdiction and therefore has no undistributed foreign earnings. However, the Company intends to permanently reinvest any future foreign earnings in Canada. | ||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents. For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and financial instruments with a purchase-date maturity of three months or less. In general, cash and cash equivalents fall within Level 1 (quoted prices for identical financial instruments) of the three-level fair value hierarchy that ranks the inputs used to measure fair value by their reliability. However, cash and cash equivalents at December 31, 2014 also includes two money market fund investments totaling approximately $250,000 which fall within Level 2 (significant other observable inputs) of the fair value hierarchy, due to the asset valuation methods used by money market funds. | ||||||||||||
During 2013 and 2014, approximately $9.3 million and $8.1 million, respectively, of customer advances, upon contract expiration, were applied as contributions toward utility construction activity and represent a non-cash investing activity. Additionally, in conjunction with the acquisition, the Company acquired several capital leases. During 2014 and after the acquisition date, an additional capital lease obligation was entered into and represents a non-cash financing inflow activity of $204,000. The associated capital lease asset represents a non-cash investing outflow activity of $204,000. In association with the acquisition, cash flows from investing activities includes an $18.9 million non-cash investing outflow due to equity to the noncontrolling interest in a subsidiary to acquire businesses. In addition, a non-cash investing outflow activity of $10.8 million related to an increase in an acquisition consideration payable is included. | |||||||||||||
Inventories | Inventories. Inventories are carried at weighted average cost and include natural gas stored underground, liquefied natural gas storage and materials and supplies. | ||||||||||||
Goodwill | Goodwill. The construction services segment includes Goodwill of $133 million in 2014 ($125 million related to the recent acquisition, which is net of approximately $5 million due to foreign currency exchange translation adjustments between the acquisition date and the end of the year). The December 31, 2014 and 2013 Goodwill amounts shown in the Consolidated Balance Sheets include approximately $8 million of Goodwill recognized when Southwest first acquired NPL Construction Co. and is associated with the construction services segment. Goodwill of $10 million in both 2014 and 2013 is associated with the natural gas operations segment. Goodwill is assessed for impairment annually, as required by U.S. GAAP, or otherwise, if circumstances indicate impairment to the carrying value of goodwill. No impairment was recorded in 2014. | ||||||||||||
Intangible Assets | Intangible Assets. Intangible assets 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. Intangible assets have finite lives and are described in Notes 2 and 15. | ||||||||||||
Accumulated Removal Costs | Accumulated Removal Costs. Approved regulatory practices allow Southwest to include in depreciation expense a component to recover removal costs associated with utility plant retirements. In accordance with the Securities and Exchange Commission’s (“SEC”) position on presentation of these amounts, management has reclassified estimated removal costs from accumulated depreciation to accumulated removal costs within the liabilities section of the balance sheets. The reclassified amounts are presented in the table below (thousands of dollars): | ||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
Accumulated removal costs | $ | 304,000 | $ | 279,000 | |||||||||
Gas Operating Revenues | Gas Operating Revenues. Revenues are recorded when customers are billed. Customer billings are based on monthly meter reads and are calculated in accordance with applicable tariffs and state and local laws, regulations, and 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 reading 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. | ||||||||||||
The Company acts as an agent for state and local taxing authorities in the collection and remission of a variety of taxes, including sales and use taxes and surcharges. These taxes are not included in gas operating revenues. The Company uses the net classification method to report taxes collected from customers to be remitted to governmental authorities. | |||||||||||||
Construction Revenues | Construction 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. Long-term fixed-price contracts use the percentage-of-completion method of accounting and, therefore, take into account the cost, estimated earnings, and revenue to date on contracts not yet completed. The amount of revenue recognized on fixed-price contracts is based on costs expended to date relative to anticipated final contract costs. 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. In connection with significant changes in estimated costs to complete a large fixed-price contract, construction services results for 2012 reflected a pretax loss of $15 million ($0.20 per share, after tax). The estimated cost changes that resulted in the loss recognized included reductions in projected productivity and higher costs of restoration work. During 2013, profitability on this contract was minimal and as of December 31, 2013, this fixed-price contract was substantially complete. Some unit-price contracts contain caps that if encroached, trigger revenue and loss recognition similar to a fixed-price contract model. | ||||||||||||
Construction Expenses | Construction Expenses. The construction expenses classification in the income statement includes payroll expenses, job-related equipment costs, direct construction costs, gains and losses on equipment sales, general and administrative expenses, acquisition and acquisition-related costs, and office-related fixed costs of Centuri. | ||||||||||||
Net Cost of Gas Sold | 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 PGA deferrals and recoveries. | ||||||||||||
Operations and Maintenance Expense | Operations and Maintenance Expense. For financial reporting purposes, operations and maintenance expense includes Southwest’s operating and maintenance costs associated with serving utility customers, uncollectible expense, administrative and general salaries and expense, employee benefits expense, 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. Other regulatory assets, including acquisition adjustments, are amortized when appropriate, over time periods authorized by regulators. Nonutility and construction 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") | 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 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. | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
AFUDC: | |||||||||||||
Debt portion | $ | 1,228 | $ | 1,260 | $ | 1,129 | |||||||
Equity portion | 1,995 | 2,274 | 1,943 | ||||||||||
AFUDC capitalized as part of utility plant | $ | 3,223 | $ | 3,534 | $ | 3,072 | |||||||
Other Income (Deductions) | 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): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Change in COLI policies | $ | 5,300 | $ | 12,400 | $ | 6,600 | |||||||
Interest income | 2,602 | 461 | 924 | ||||||||||
Pipe replacement costs | — | (132 | ) | (2,680 | ) | ||||||||
Foreign currency transaction gain (loss) | (178 | ) | — | — | |||||||||
Miscellaneous income and (expense) | (617 | ) | (429 | ) | (433 | ) | |||||||
Total other income (deductions) | $ | 7,107 | $ | 12,300 | $ | 4,411 | |||||||
Included in the table above is the change in cash surrender values of company-owned life insurance (“COLI”) policies (including net death benefits recognized). Changes in cash surrender values are directly influenced by the investment portfolio underlying the insurance 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. 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. Pipe replacement costs include amounts associated with certain Arizona non-recoverable pipe replacement work. The replacement program work subject to non-recoverability was substantially completed in 2012. | |||||||||||||
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, the amounts of which are not material, are included in other income (expense) within net income. 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. In connection with the ownership structure of Centuri and its subsidiary entities, a redeemable noncontrolling interest exists in Lynxus. The Company concluded that this noncontrolling interest meets the definition of a participating security in connection with Accounting Standards Codification (“ASC”) Topic 260, as a result of dividend participation rights of the noncontrolling interest that are different than the underlying proportional ownership interest. Related provisions of ASC 260 would require consideration of the participation right in computing earnings per share. However, as earnings are already attributed to the noncontrolling interest equivalent to the participation right, taking an additional adjustment in computing basic earnings per share would duplicate the economic impact associated with the participating security. Furthermore, as net income attributable to common shareholders of Southwest Gas Corporation has already been adjusted for the attribution of income to the noncontrolling interest, the Company concluded that a diluted earnings per share calculation, assuming exchange of the ownership shares of the noncontrolling interest in Lynxus, for ownership shares in Centuri, would not produce a different result than that which results from computing basic earnings per share. The noncontrolling interest is also redeemable for fair value at specified dates in the future. No adjustment will be made to the Company’s income attributable to common shareholders, in computing earnings per share, to reflect changes in the redemption price, as redemption at fair value is not considered an economic distribution different from other common stockholders. See also Note 15 – Acquisition of Construction Services Businesses and Note 16 – Construction Services Noncontrolling Interests. | ||||||||||||
Basic earnings per share (“EPS”) are calculated by dividing net income attributable to Southwest Gas Corporation by the weighted-average number of shares outstanding during the period. Diluted EPS includes additional weighted-average common stock equivalents (stock options, 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. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Average basic shares | 46,494 | 46,318 | 46,115 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | 17 | 26 | 42 | ||||||||||
Performance shares | 215 | 231 | 254 | ||||||||||
Restricted stock units | 218 | 183 | 144 | ||||||||||
Average diluted shares | 46,944 | 46,758 | 46,555 | ||||||||||
Recently Issued Accounting Standards Updates | Recently Issued Accounting Standards Updates. In May 2014, the Financial Accounting Standards Board (“FASB”) issued the update “Revenue from Contracts with Customers (Topic 606).” The update replaces much of the current guidance regarding revenue recognition including most industry-specific guidance. The core principle of the update is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity will be required to identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the entity satisfies a performance obligation. In addition to the new revenue recognition requirements, entities will be required to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Entities may choose between two retrospective transition methods when applying the update. The Company plans to adopt this update, as required, on January 1, 2017 for interim and annual reporting periods. Early adoption is not permitted. The Company is evaluating what impact this standard might have on its consolidated financial statements and disclosures. Additionally, the power and utilities industry as a whole assembled a task force for purposes of considering unique circumstances that relate to our industry and for communicating those industry considerations to the American Institute of Certified Public Accountants. Those undertakings are ongoing. | ||||||||||||
In August 2014, the FASB issued the update “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management to asses a company’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. Under the update, disclosures are required when conditions give rise to substantial doubt about a company’s ability to continue as a going concern within one year from the financial statement issuance date. The update is effective for the annual period ending after December 15, 2016, and all annual and interim periods thereafter. This update is not expected to have a material impact on the Company’s disclosures. | |||||||||||||
Subsequent Events | Subsequent Events. Management of the Company 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. | ||||||||||||
Reclassifications | Reclassifications. Certain reclassifications were made to the prior year’s financial information included in the Consolidated Balance Sheets (goodwill is identified separately from Deferred charges and other assets) in order to present the prior-year information on a basis comparable with the current year’s presentation, with no impact to total assets overall. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of Other Property and Investments | Other Property and Investments. Other property and investments includes (millions of dollars): | ||||||||||||
2014 | 2013 | ||||||||||||
Centuri property, equipment, and intangibles | $ | 405 | $ | 320 | |||||||||
Centuri accumulated provision for depreciation and amortization | (187 | ) | (163 | ) | |||||||||
Net cash surrender value of COLI policies | 99 | 93 | |||||||||||
Other property | 10 | 11 | |||||||||||
Total | $ | 327 | $ | 261 | |||||||||
Schedule of Accumulated Removal Costs | The reclassified amounts are presented in the table below (thousands of dollars): | ||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
Accumulated removal costs | $ | 304,000 | $ | 279,000 | |||||||||
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. | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
AFUDC: | |||||||||||||
Debt portion | $ | 1,228 | $ | 1,260 | $ | 1,129 | |||||||
Equity portion | 1,995 | 2,274 | 1,943 | ||||||||||
AFUDC capitalized as part of utility plant | $ | 3,223 | $ | 3,534 | $ | 3,072 | |||||||
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): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Change in COLI policies | $ | 5,300 | $ | 12,400 | $ | 6,600 | |||||||
Interest income | 2,602 | 461 | 924 | ||||||||||
Pipe replacement costs | — | (132 | ) | (2,680 | ) | ||||||||
Foreign currency transaction gain (loss) | (178 | ) | — | — | |||||||||
Miscellaneous income and (expense) | (617 | ) | (429 | ) | (433 | ) | |||||||
Total other income (deductions) | $ | 7,107 | $ | 12,300 | $ | 4,411 | |||||||
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. | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Average basic shares | 46,494 | 46,318 | 46,115 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | 17 | 26 | 42 | ||||||||||
Performance shares | 215 | 231 | 254 | ||||||||||
Restricted stock units | 218 | 183 | 144 | ||||||||||
Average diluted shares | 46,944 | 46,758 | 46,555 | ||||||||||
Utility_Plant_and_Leases_Table
Utility Plant and Leases (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Leases [Abstract] | |||||||||||||
Schedule of Net Utility Plant | Net utility plant as of December 31, 2014 and 2013 was as follows (thousands of dollars): | ||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Gas plant: | |||||||||||||
Storage | $ | 22,531 | $ | 21,282 | |||||||||
Transmission | 312,300 | 313,306 | |||||||||||
Distribution | 4,655,640 | 4,410,598 | |||||||||||
General | 356,072 | 324,490 | |||||||||||
Software and software-related intangibles | 196,035 | 168,815 | |||||||||||
Other | 14,021 | 13,978 | |||||||||||
5,556,599 | 5,252,469 | ||||||||||||
Less: accumulated depreciation | (1,973,098 | ) | (1,868,504 | ) | |||||||||
Acquisition adjustments, net | 550 | 730 | |||||||||||
Construction work in progress | 74,332 | 101,413 | |||||||||||
Net utility plant | $ | 3,658,383 | $ | 3,486,108 | |||||||||
Schedule of Depreciation and Amortization Expense | Depreciation and amortization expense on gas plant, including intangibles, was as follows (thousands of dollars): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation and amortization expense | $ | 194,360 | $ | 185,283 | $ | 182,612 | |||||||
Schedule of Rental Payments for Operating Leases | The table below presents Southwest’s rental payments and Centuri’s lease payments that are included in operating expenses (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Southwest Gas | $ | 5,330 | $ | 8,308 | $ | 7,762 | |||||||
Centuri | 30,012 | 27,118 | 24,054 | ||||||||||
Consolidated rental payments/lease expense | $ | 35,342 | $ | 35,426 | $ | 31,816 | |||||||
Schedule of Future Minimum Lease Payments for Operating Leases | The following is a schedule of future minimum lease payments for significant non-cancelable operating leases (with initial or remaining terms in excess of one year) as of December 31, 2014 (thousands of dollars): | ||||||||||||
Year Ending December 31, | |||||||||||||
2015 | $ | 5,957 | |||||||||||
2016 | 4,236 | ||||||||||||
2017 | 2,532 | ||||||||||||
2018 | 1,582 | ||||||||||||
2019 | 912 | ||||||||||||
Thereafter | 831 | ||||||||||||
Total minimum lease payments | $ | 16,050 | |||||||||||
Schedule of Capital Leases of Equipment | The amount of capital leases of equipment as of December 31, 2014 and 2013 is as follows (thousands of dollars): | ||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Capital leases of equipment | $ | 5,763 | $ | — | |||||||||
Less: accumulated amortization | (287 | ) | — | ||||||||||
Net capital leases | $ | 5,476 | $ | — | |||||||||
Schedule of Future Minimum Lease Payments for Capital Leases | The following is a schedule of future minimum lease payments for non-cancelable capital leases (with initial or remaining terms in excess of one year) as of December 31, 2014 (thousands of dollars): | ||||||||||||
Year Ending December 31, | |||||||||||||
2015 | $ | 1,690 | |||||||||||
2016 | 1,632 | ||||||||||||
2017 | 813 | ||||||||||||
2018 | 591 | ||||||||||||
2019 | — | ||||||||||||
Thereafter | — | ||||||||||||
4,726 | |||||||||||||
Less: amount representing interest | (497 | ) | |||||||||||
Total minimum lease payments | $ | 4,229 | |||||||||||
Receivables_and_Related_Allowa1
Receivables and Related Allowances (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
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, 2014, | ||||
December 31, 2014 | |||||
Gas utility customer accounts receivable balance (in thousands) | $ | 136,148 | |||
Schedule of Percent of Customers by State | |||||
The table below contains information about the percentage of customers in each of the three states at December 31, 2014. | |||||
December 31, 2014 | |||||
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, 2011 | $ | 3,182 | |||
Additions charged to expense | 2,471 | ||||
Accounts written off, less recoveries | (3,149 | ) | |||
Balance, December 31, 2012 | 2,504 | ||||
Additions charged to expense | 3,583 | ||||
Accounts written off, less recoveries | (4,362 | ) | |||
Balance, December 31, 2013 | 1,725 | ||||
Additions charged to expense | 4,146 | ||||
Accounts written off, less recoveries | (3,616 | ) | |||
Balance, December 31, 2014 | $ | 2,255 | |||
Regulatory_Assets_and_Liabilit1
Regulatory Assets and Liabilities (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Regulated Operations [Abstract] | |||||||||||
Schedule of Regulatory Assets and Liabilities | The following table represents existing regulatory assets and liabilities (thousands of dollars): | ||||||||||
December 31, | 2014 | 2013 | |||||||||
Regulatory assets: | |||||||||||
Accrued pension and other postretirement benefit costs (1) | $ | 390,293 | $ | 249,985 | |||||||
Unrealized net loss on non-trading derivatives (Swaps) (2) | 5,425 | 160 | |||||||||
Deferred purchased gas costs (3) | 87,556 | 18,217 | |||||||||
Accrued purchased gas costs (4) | 2,600 | 31,500 | |||||||||
Unamortized premium on reacquired debt (5) | 20,478 | 19,614 | |||||||||
Other (6) | 72,132 | 48,945 | |||||||||
578,484 | 368,421 | ||||||||||
Regulatory liabilities: | |||||||||||
Accumulated removal costs | (304,000 | ) | (279,000 | ) | |||||||
Unrealized net gain on non-trading derivatives (Swaps) (2) | — | (981 | ) | ||||||||
Deferred gain on southern Nevada division operations facility (7) | (115 | ) | (253 | ) | |||||||
Unamortized gain on reacquired debt (8) | (10,862 | ) | (11,398 | ) | |||||||
Other (9) | (34,233 | ) | (26,482 | ) | |||||||
Net regulatory assets | $ | 229,274 | $ | 50,307 | |||||||
-1 | Included in Deferred charges and other assets on the Consolidated Balance Sheets. Recovery period is greater than five years. (See Note 9). | ||||||||||
-2 | The following table details the regulatory assets/(liabilities) offsetting the derivatives (Swaps) at fair value in the balance sheets (thousands of dollars). The actual amounts, when realized at settlement, become a component of purchased gas costs under the Company’s purchased gas adjustment (“PGA”) mechanisms. (See Note 12). | ||||||||||
Instrument | Balance Sheet Location | 2014 | 2013 | ||||||||
Swaps | Deferred charges and other assets | $ | 363 | $ | 4 | ||||||
Swaps | Prepaids and other current assets | 5,062 | 156 | ||||||||
Swaps | Other current liabilities | — | (801 | ) | |||||||
Swaps | Other deferred credits | — | (180 | ) | |||||||
-3 | Balance recovered or refunded on an ongoing basis with interest. | ||||||||||
-4 | Included in Prepaids 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 | Other regulatory assets including deferred costs associated with rate cases, regulatory studies, and state mandated public purpose programs (including low income and conservation programs), as well as margin and interest-tracking accounts, amounts associated with accrued absence time, and deferred post-retirement benefits other than pensions. Recovery periods vary. | ||||||||||
-7 | Balance was originally being amortized over a four-year period beginning in the fourth quarter of 2009. As a result of the most recent Nevada general rate case, the amortization period was extended through October 2015. | ||||||||||
-8 | Included in Other deferred credits on the Consolidated Balance Sheet. Amortized over life of debt instruments. | ||||||||||
-9 | Other regulatory liabilities includes amounts associated with income tax and gross-up. |
Other_Comprehensive_Income_and1
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Text Block [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) | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Before- | Tax | Net-of- | Before- | Tax | Net-of- | Before- | Tax | Net-of- | |||||||||||||||||||||||||||||||||
Tax | (Expense) | Tax | Tax | (Expense) | Tax | Tax | (Expense) | Tax | |||||||||||||||||||||||||||||||||
Amount | or | Amount | Amount | or Benefit (1) | Amount | Amount | or Benefit (1) | Amount | |||||||||||||||||||||||||||||||||
Benefit (1) | |||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||||||||||||||||||||
Net actuarial gain/(loss) | $ | (173,646 | ) | $ | 65,985 | $ | (107,661 | ) | $ | 100,345 | $ | (38,131 | ) | $ | 62,214 | $ | (74,853 | ) | $ | 28,444 | $ | (46,409 | ) | ||||||||||||||||||
Amortization of prior service cost | 355 | (135 | ) | 220 | 355 | (135 | ) | 220 | — | — | — | ||||||||||||||||||||||||||||||
Amortization of transition obligation | — | — | — | — | — | — | 867 | (329 | ) | 538 | |||||||||||||||||||||||||||||||
Amortization of net actuarial (gain)/loss | 23,656 | (8,989 | ) | 14,667 | 34,177 | (12,987 | ) | 21,190 | 25,597 | (9,727 | ) | 15,870 | |||||||||||||||||||||||||||||
Prior service cost | (6,661 | ) | 2,531 | (4,130 | ) | — | — | — | (2,423 | ) | 921 | (1,502 | ) | ||||||||||||||||||||||||||||
Regulatory adjustment | 140,308 | (53,317 | ) | 86,991 | (123,630 | ) | 46,979 | (76,651 | ) | 42,771 | (16,253 | ) | 26,518 | ||||||||||||||||||||||||||||
Pension plans other comprehensive income (loss) | (15,988 | ) | 6,075 | (9,913 | ) | 11,247 | (4,274 | ) | 6,973 | (8,041 | ) | 3,056 | (4,985 | ) | |||||||||||||||||||||||||||
FSIRS (designated hedging activities): | |||||||||||||||||||||||||||||||||||||||||
Unrealized/realized gain (loss) | — | — | — | — | — | — | 2,959 | (1,125 | ) | 1,834 | |||||||||||||||||||||||||||||||
Amounts reclassified into net income | 3,345 | (1,272 | ) | 2,073 | 3,345 | (1,271 | ) | 2,074 | 2,801 | (1,064 | ) | 1,737 | |||||||||||||||||||||||||||||
FSIRS other comprehensive income (loss) | 3,345 | (1,272 | ) | 2,073 | 3,345 | (1,271 | ) | 2,074 | 5,760 | (2,189 | ) | 3,571 | |||||||||||||||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||||||||||||||||||||||||||
Translation adjustments | (659 | ) | — | (659 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Foreign currency other comprehensive income (loss) | (659 | ) | — | (659 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | $ | (13,302 | ) | $ | 4,803 | $ | (8,499 | ) | $ | 14,592 | $ | (5,545 | ) | $ | 9,047 | $ | (2,281 | ) | $ | 867 | $ | (1,414 | ) | ||||||||||||||||||
-1 | Tax amounts are calculated using a 38% rate. The Company has elected to indefinitely reinvest the earnings of Centuri’s Canadian subsidiaries in Canada, thus preventing deferred taxes on such earnings. As a result of this assertion, the Company is not recognizing any tax effect or presenting a tax expense or benefit for the currency translation adjustment amount reported in Other Comprehensive Income, as repatriation of earnings is not anticipated. | ||||||||||||||||||||||||||||||||||||||||
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 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Retirement plan net actuarial loss | $ | 33,000 | |||||||||||||||||||||||||||||||||||||||
SERP net actuarial loss | 1,300 | ||||||||||||||||||||||||||||||||||||||||
PBOP net actuarial loss | 300 | ||||||||||||||||||||||||||||||||||||||||
PBOP prior service cost | 1,300 | ||||||||||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||
AOCI – Rollforward | |||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans (Note 9) | FSIRS (Note 12) | Foreign Currency Items | |||||||||||||||||||||||||||||||||||||||
Before- | Tax | After- | Before- | Tax | After- | Before- | Tax | After- | AOCI | ||||||||||||||||||||||||||||||||
Tax | (Expense) | Tax | Tax | (Expense) | Tax | Tax | (Expense) | Tax | |||||||||||||||||||||||||||||||||
Benefit | Benefit | Benefit | |||||||||||||||||||||||||||||||||||||||
Beginning Balance AOCI December 31, 2013 | $ | (41,223 | ) | $ | 15,665 | $ | (25,558 | ) | $ | (26,033 | ) | $ | 9,893 | $ | (16,140 | ) | $ | — | $ | — | $ | — | $ | (41,698 | ) | ||||||||||||||||
Net actuarial gain/(loss) | (173,646 | ) | 65,985 | (107,661 | ) | — | — | — | — | — | — | (107,661 | ) | ||||||||||||||||||||||||||||
Translation adjustments | — | — | — | — | — | — | (659 | ) | — | (659 | ) | (659 | ) | ||||||||||||||||||||||||||||
Other comprehensive income before reclassi | (173,646 | ) | 65,985 | (107,661 | ) | — | — | — | (659 | ) | — | (659 | ) | (108,320 | ) | ||||||||||||||||||||||||||
fications | |||||||||||||||||||||||||||||||||||||||||
FSIRS amounts reclassified from AOCI (1) | — | — | — | 3,345 | (1,272 | ) | 2,073 | — | — | — | 2,073 | ||||||||||||||||||||||||||||||
Amortization of prior service cost (2) | 355 | (135 | ) | 220 | — | — | — | — | — | — | 220 | ||||||||||||||||||||||||||||||
Amortization of net actuarial loss (2) | 23,656 | (8,989 | ) | 14,667 | — | — | — | — | — | — | 14,667 | ||||||||||||||||||||||||||||||
Prior service cost | (6,661 | ) | 2,531 | (4,130 | ) | — | — | — | — | — | — | (4,130 | ) | ||||||||||||||||||||||||||||
Regulatory adjustment (3) | 140,308 | (53,317 | ) | 86,991 | — | — | — | — | — | — | 86,991 | ||||||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | (15,988 | ) | 6,075 | (9,913 | ) | 3,345 | (1,272 | ) | 2,073 | (659 | ) | — | (659 | ) | (8,499 | ) | |||||||||||||||||||||||||
Less: Translation adjustment attributable to redeemable noncontrolling interest | — | — | — | — | — | — | (22 | ) | — | (22 | ) | (22 | ) | ||||||||||||||||||||||||||||
Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation | (15,988 | ) | 6,075 | (9,913 | ) | 3,345 | (1,272 | ) | 2,073 | (637 | ) | — | (637 | ) | (8,477 | ) | |||||||||||||||||||||||||
Ending Balance AOCI December 31, 2014 | $ | (57,211 | ) | $ | 21,740 | $ | (35,471 | ) | $ | (22,688 | ) | $ | 8,621 | $ | (14,067 | ) | $ | (637 | ) | $ | — | $ | (637 | ) | $ | (50,175 | ) | ||||||||||||||
-1 | The FSIRS reclassification amounts are included in the Net interest deductions line item on the Consolidated Statements of Income. | ||||||||||||||||||||||||||||||||||||||||
-2 | These AOCI components are included in the computation of net periodic benefit cost (see Note 9 – 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 the Deferred charges and other assets line item on the Consolidated Balance Sheets). | ||||||||||||||||||||||||||||||||||||||||
Amount Recognized Before Income Tax in Accumulated Other Comprehensive Income | The following table represents amounts (before income tax impacts) included in Accumulated other comprehensive income (in the table above), that have not yet been recognized in net periodic benefit cost as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||||||||||
Amounts Recognized in AOCI (Before Tax) | |||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
Net actuarial (loss) gain | $ | (439,131 | ) | $ | (289,141 | ) | |||||||||||||||||||||||||||||||||||
Prior service cost | (8,373 | ) | (2,067 | ) | |||||||||||||||||||||||||||||||||||||
Less: amount recognized in regulatory assets | 390,293 | 249,985 | |||||||||||||||||||||||||||||||||||||||
Recognized in AOCI | $ | (57,211 | ) | $ | (41,223 | ) | |||||||||||||||||||||||||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Schedule of Carrying Amounts and Estimated Fair Values of Long-Term Debt | The Centuri secured revolving credit and term loan facility and Centuri other debt obligations (not actively traded) are categorized as Level 3, based on significant unobservable inputs to their fair values. Since Centuri’s debt is not publicly traded, fair values for the secured revolving credit and term loan facility and other debt obligations were based on a conventional discounted cash flow methodology and utilizes 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. | ||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||
Carrying | Market | Carrying | Market | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
(Thousands of dollars) | |||||||||||||||||
Debentures: | |||||||||||||||||
Notes, 4.45%, due 2020 | $ | 125,000 | $ | 133,403 | $ | 125,000 | $ | 130,953 | |||||||||
Notes, 6.1%, due 2041 | 125,000 | 157,290 | 125,000 | 141,873 | |||||||||||||
Notes, 3.875%, due 2022 | 250,000 | 262,030 | 250,000 | 252,485 | |||||||||||||
Notes, 4.875%, due 2043 | 250,000 | 280,903 | 250,000 | 257,280 | |||||||||||||
8% Series, due 2026 | 75,000 | 102,296 | 75,000 | 96,263 | |||||||||||||
Medium-term notes, 7.59% series, due 2017 | 25,000 | 27,573 | 25,000 | 28,741 | |||||||||||||
Medium-term notes, 7.78% series, due 2022 | 25,000 | 31,144 | 25,000 | 30,586 | |||||||||||||
Medium-term notes, 7.92% series, due 2027 | 25,000 | 33,695 | 25,000 | 31,497 | |||||||||||||
Medium-term notes, 6.76% series, due 2027 | 7,500 | 9,156 | 7,500 | 8,468 | |||||||||||||
Unamortized discount | (5,223 | ) | (5,560 | ) | |||||||||||||
902,277 | 901,940 | ||||||||||||||||
Revolving credit facility and commercial paper | 150,000 | 150,000 | 10,000 | 10,000 | |||||||||||||
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 | |||||||||||||
Fixed-rate bonds: | |||||||||||||||||
5.25% 2003 Series D, due 2038 | 20,000 | 20,277 | 20,000 | 20,150 | |||||||||||||
5.25% 2004 Series A, due 2034 | — | — | 65,000 | 64,522 | |||||||||||||
5.00% 2004 Series B, due 2033 | 31,200 | 31,223 | 31,200 | 30,284 | |||||||||||||
4.85% 2005 Series A, due 2035 | 100,000 | 100,071 | 100,000 | 95,192 | |||||||||||||
4.75% 2006 Series A, due 2036 | 24,855 | 25,399 | 24,855 | 22,974 | |||||||||||||
Unamortized discount | (1,943 | ) | (2,776 | ) | |||||||||||||
374,112 | 438,279 | ||||||||||||||||
Centuri secured revolving credit and term loan facility | 199,267 | 200,341 | — | — | |||||||||||||
Centuri other debt obligations | 31,128 | 31,127 | 42,213 | 42,119 | |||||||||||||
1,656,784 | 1,392,432 | ||||||||||||||||
Less: current maturities | (19,192 | ) | (11,105 | ) | |||||||||||||
Long-term debt, less current maturities | $ | 1,637,592 | $ | 1,381,327 | |||||||||||||
Summary of Effective Interest Rates on Variable-Rate IDRBs | The effective interest rates on the variable-rate IDRBs are included in the table below: | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
2003 Series A | 0.85 | % | 1.43 | % | |||||||||||||
2008 Series A | 0.9 | % | 1.41 | % | |||||||||||||
2009 Series A | 0.89 | % | 1.01 | % | |||||||||||||
Tax-exempt Series A | 0.84 | % | 1.07 | % | |||||||||||||
Estimated Maturities of Long-Term Debt | Estimated maturities of long-term debt for the next five years are (in thousands): | ||||||||||||||||
2015 | $ | 19,192 | |||||||||||||||
2016 | 20,991 | ||||||||||||||||
2017 | 43,899 | ||||||||||||||||
2018 | 16,985 | ||||||||||||||||
2019 | 304,328 |
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost of Retirement Plan | The cost of the Southwest plan is listed below (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Employee Investment Plan cost | $ | 4,816 | $ | 4,850 | $ | 4,707 | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Allocation of Plan Assets | At December 31, 2014, the percentage ranges of the target portfolio are: | ||||||||||||||||||||||||||||||||||||||||||||||||
Type of Investment | Percentage Range | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 59 to 71 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | 31 to 37 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | up to 5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used | The rates are presented in the table below: | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.25 | % | 5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Weighted-average rate of compensation increase | 2.75 | % | 3.25 | % | |||||||||||||||||||||||||||||||||||||||||||||
Asset return assumption | 7.75 | % | 7.75 | % | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in Balance Sheet and Income Statement | The following table sets forth the retirement plan, SERP, and PBOP funded statuses and amounts recognized on the Consolidated Balance Sheets and Statements of Income. | ||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Qualified | SERP | PBOP | Qualified | SERP | PBOP | ||||||||||||||||||||||||||||||||||||||||||||
Retirement Plan | Retirement Plan | ||||||||||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in benefit obligations | |||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) | $ | 886,714 | $ | 36,143 | $ | 58,020 | $ | 902,812 | $ | 37,373 | $ | 59,704 | |||||||||||||||||||||||||||||||||||||
Service cost | 21,360 | 292 | 1,101 | 23,056 | 373 | 1,220 | |||||||||||||||||||||||||||||||||||||||||||
Interest cost | 43,440 | 1,745 | 2,829 | 37,607 | 1,535 | 2,482 | |||||||||||||||||||||||||||||||||||||||||||
Plan amendments | — | — | 6,661 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 144,606 | 5,459 | 4,567 | (44,768 | ) | (661 | ) | (4,073 | ) | ||||||||||||||||||||||||||||||||||||||||
Benefits paid | (35,880 | ) | (2,463 | ) | (976 | ) | (31,993 | ) | (2,477 | ) | (1,313 | ) | |||||||||||||||||||||||||||||||||||||
Benefit obligation at end of year (PBO/PBO/APBO) | 1,060,240 | 41,176 | 72,202 | 886,714 | 36,143 | 58,020 | |||||||||||||||||||||||||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||||||||||||||||||||||||||
Market value of plan assets at beginning of year | 719,944 | — | 42,314 | 609,750 | — | 35,250 | |||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 34,732 | — | 2,859 | 96,187 | — | 7,319 | |||||||||||||||||||||||||||||||||||||||||||
Employer contributions | 36,000 | 2,463 | — | 46,000 | 2,477 | 169 | |||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (35,880 | ) | (2,463 | ) | (281 | ) | (31,993 | ) | (2,477 | ) | (424 | ) | |||||||||||||||||||||||||||||||||||||
Market value of plan assets at end of year | 754,796 | — | 44,892 | 719,944 | — | 42,314 | |||||||||||||||||||||||||||||||||||||||||||
Funded status at year end | $ | (305,444 | ) | $ | (41,176 | ) | $ | (27,310 | ) | $ | (166,770 | ) | $ | (36,143 | ) | $ | (15,706 | ) | |||||||||||||||||||||||||||||||
Weighted-average assumptions (benefit obligation) | |||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.25 | % | 4.25 | % | 4.25 | % | 5 | % | 5 | % | 5 | % | |||||||||||||||||||||||||||||||||||||
Weighted-average rate of compensation increase | 2.75 | % | 2.75 | % | 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 (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Retirement plan | $ | 886,215 | $ | 794,919 | |||||||||||||||||||||||||||||||||||||||||||||
SERP | 39,125 | 33,894 | |||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Expected Benefit Payments | Benefits expected to be paid for the pension, PBOP, and the SERP over the next 10 years are as follows (in millions): | ||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | ||||||||||||||||||||||||||||||||||||||||||||
Pension | $39.10 | $41.30 | $43.10 | $45.30 | $47.50 | $272.70 | |||||||||||||||||||||||||||||||||||||||||||
PBOP | 3.3 | 3.6 | 3.8 | 4 | 4.1 | 20.4 | |||||||||||||||||||||||||||||||||||||||||||
SERP | 2.6 | 2.6 | 2.6 | 2.6 | 2.6 | 13 | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Benefit Cost and Weighted-Average Assumptions | Components of net periodic benefit cost | ||||||||||||||||||||||||||||||||||||||||||||||||
Qualified | SERP | PBOP | |||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plan | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 21,360 | $ | 23,056 | $ | 20,319 | $ | 292 | $ | 373 | $ | 274 | $ | 1,101 | $ | 1,220 | $ | 977 | |||||||||||||||||||||||||||||||
Interest cost | 43,440 | 37,607 | 38,266 | 1,745 | 1,535 | 1,629 | 2,829 | 2,482 | 2,547 | ||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (53,342 | ) | (49,840 | ) | (45,780 | ) | — | — | — | (3,264 | ) | (2,824 | ) | (2,404 | ) | ||||||||||||||||||||||||||||||||||
Amortization of prior service cost | — | — | — | — | — | — | 355 | 355 | — | ||||||||||||||||||||||||||||||||||||||||
Amortization of transition obligation | — | — | — | — | — | — | — | — | 867 | ||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | 22,873 | 32,261 | 23,883 | 783 | 971 | 683 | — | 945 | 1,031 | ||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 34,331 | $ | 43,084 | $ | 36,688 | $ | 2,820 | $ | 2,879 | $ | 2,586 | $ | 1,021 | $ | 2,178 | $ | 3,018 | |||||||||||||||||||||||||||||||
Weighted-average assumptions (net benefit cost) | |||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 5 | % | 4.25 | % | 5 | % | 5 | % | 4.25 | % | 5 | % | 5 | % | 4.25 | % | 5 | % | |||||||||||||||||||||||||||||||
Expected return on plan assets | 7.75 | % | 8 | % | 8 | % | 7.75 | % | 8 | % | 8 | % | 7.75 | % | 8 | % | 8 | % | |||||||||||||||||||||||||||||||
Weighted-average rate of compensation increase | 3.25 | % | 2.75 | % | 3 | % | 3.25 | % | 2.75 | % | 3 | % | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||
Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | Other Changes in Plan Assets and Benefit Obligations Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | ||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | Qualified | SERP | PBOP | Total | Qualified | SERP | PBOP | Total | Qualified | SERP | PBOP | ||||||||||||||||||||||||||||||||||||||
Retirement | Retirement | Retirement | |||||||||||||||||||||||||||||||||||||||||||||||
Plan | Plan | Plan | |||||||||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) (a) | $ | 173,646 | $ | 163,215 | $ | 5,460 | $ | 4,971 | $ | (100,345 | ) | $ | (91,115 | ) | $ | (662 | ) | $ | (8,568 | ) | $ | 74,853 | $ | 70,016 | $ | 4,111 | $ | 726 | |||||||||||||||||||||
Amortization of prior service cost (b) | (355 | ) | — | — | (355 | ) | (355 | ) | — | — | (355 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||
Amortization of transition obligation (b) | — | — | — | — | — | — | — | — | (867 | ) | — | — | (867 | ) | |||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss (b) | (23,656 | ) | (22,872 | ) | (784 | ) | — | (34,177 | ) | (32,261 | ) | (971 | ) | (945 | ) | (25,597 | ) | (23,883 | ) | (683 | ) | (1,031 | ) | ||||||||||||||||||||||||||
Prior service cost | 6,661 | — | — | 6,661 | — | — | — | — | 2,423 | — | — | 2,423 | |||||||||||||||||||||||||||||||||||||
Regulatory adjustment | (140,308 | ) | (129,031 | ) | — | (11,277 | ) | 123,630 | 113,762 | — | 9,868 | (42,771 | ) | (41,520 | ) | — | (1,251 | ) | |||||||||||||||||||||||||||||||
Recognized in other comprehensive | |||||||||||||||||||||||||||||||||||||||||||||||||
(income) loss | 15,988 | 11,312 | 4,676 | — | (11,247 | ) | (9,614 | ) | (1,633 | ) | — | 8,041 | 4,613 | 3,428 | — | ||||||||||||||||||||||||||||||||||
Net periodic benefit costs recognized in net income | 38,172 | 34,331 | 2,820 | 1,021 | 48,141 | 43,084 | 2,879 | 2,178 | 42,292 | 36,688 | 2,586 | 3,018 | |||||||||||||||||||||||||||||||||||||
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss | $ | 54,160 | $ | 45,643 | $ | 7,496 | $ | 1,021 | $ | 36,894 | $ | 33,470 | $ | 1,246 | $ | 2,178 | $ | 50,333 | $ | 41,301 | $ | 6,014 | $3,018 | ||||||||||||||||||||||||||
The table above discloses the net gain or loss, prior service cost, and transition amount 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, 2014 and December 31, 2013. The SERP has no assets. There were no transfers between Levels 1 and 2 during 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Qualified | PBOP | Total | Qualified | PBOP | Total | ||||||||||||||||||||||||||||||||||||||||||||
Retirement | Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Plan | Plan | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets at fair value (thousands of dollars): | |||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 – Quoted prices in active markets for identical financial assets | |||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | |||||||||||||||||||||||||||||||||||||||||||||||||
Agriculture | $ | 6,661 | $ | 198 | $ | 6,859 | $ | 8,224 | $ | 244 | $ | 8,468 | |||||||||||||||||||||||||||||||||||||
Capital equipment | 2,222 | 66 | 2,288 | 3,891 | 115 | 4,006 | |||||||||||||||||||||||||||||||||||||||||||
Chemicals/materials | 5,233 | 155 | 5,388 | 8,228 | 244 | 8,472 | |||||||||||||||||||||||||||||||||||||||||||
Consumer goods | 41,731 | 1,238 | 42,969 | 54,329 | 1,611 | 55,940 | |||||||||||||||||||||||||||||||||||||||||||
Energy and mining | 18,502 | 549 | 19,051 | 36,126 | 1,071 | 37,197 | |||||||||||||||||||||||||||||||||||||||||||
Finance/insurance | 20,685 | 613 | 21,298 | 37,643 | 1,116 | 38,759 | |||||||||||||||||||||||||||||||||||||||||||
Healthcare | 37,846 | 1,122 | 38,968 | 40,426 | 1,199 | 41,625 | |||||||||||||||||||||||||||||||||||||||||||
Information technology | 25,881 | 767 | 26,648 | 24,636 | 731 | 25,367 | |||||||||||||||||||||||||||||||||||||||||||
Services | 28,846 | 855 | 29,701 | 31,212 | 926 | 32,138 | |||||||||||||||||||||||||||||||||||||||||||
Telecommunications/internet/media | 18,498 | 549 | 19,047 | 24,270 | 720 | 24,990 | |||||||||||||||||||||||||||||||||||||||||||
Other | 10,958 | 325 | 11,283 | 16,455 | 488 | 16,943 | |||||||||||||||||||||||||||||||||||||||||||
Real estate investment trusts | 5,713 | 169 | 5,882 | 5,779 | 171 | 5,950 | |||||||||||||||||||||||||||||||||||||||||||
Mutual funds | 86,159 | 24,567 | 110,726 | 76,764 | 22,495 | 99,259 | |||||||||||||||||||||||||||||||||||||||||||
Government fixed income securities | 44,694 | 1,325 | 46,019 | 34,495 | 1,023 | 35,518 | |||||||||||||||||||||||||||||||||||||||||||
Preferred securities | 568 | 17 | 585 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total Level 1 Assets (1) | $ | 354,197 | $ | 32,515 | $ | 386,712 | $ | 402,478 | $ | 32,154 | $ | 434,632 | |||||||||||||||||||||||||||||||||||||
Level 2 – Significant other observable inputs | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | $ | — | $ | — | $ | — | $ | 1,411 | $ | 42 | $ | 1,453 | |||||||||||||||||||||||||||||||||||||
Government fixed income and mortgage backed securities | 48,312 | 1,433 | 49,745 | 49,298 | 1,462 | 50,760 | |||||||||||||||||||||||||||||||||||||||||||
Corporate fixed income securities | |||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed and mortgage-backed | 27,071 | 803 | 27,874 | 20,697 | 614 | 21,311 | |||||||||||||||||||||||||||||||||||||||||||
Banking | 23,289 | 691 | 23,980 | 19,004 | 564 | 19,568 | |||||||||||||||||||||||||||||||||||||||||||
Insurance | 6,182 | 183 | 6,365 | 6,481 | 192 | 6,673 | |||||||||||||||||||||||||||||||||||||||||||
Utilities | 4,232 | 126 | 4,358 | 5,278 | 156 | 5,434 | |||||||||||||||||||||||||||||||||||||||||||
Other | 23,120 | 686 | 23,806 | 19,649 | 582 | 20,231 | |||||||||||||||||||||||||||||||||||||||||||
Pooled funds and mutual funds | 11,968 | 984 | 12,952 | 8,111 | 1,150 | 9,261 | |||||||||||||||||||||||||||||||||||||||||||
State and local obligations | 1,499 | 44 | 1,543 | 1,370 | 41 | 1,411 | |||||||||||||||||||||||||||||||||||||||||||
Total Level 2 assets (2) | $ | 145,673 | $ | 4,950 | $ | 150,623 | $ | 131,299 | $ | 4,803 | $ | 136,102 | |||||||||||||||||||||||||||||||||||||
Level 3 – Significant unobservable inputs | |||||||||||||||||||||||||||||||||||||||||||||||||
Commingled equity funds | $ | 259,235 | $ | 7,687 | $ | 266,922 | $ | 189,452 | $ | 5,618 | $ | 195,070 | |||||||||||||||||||||||||||||||||||||
Total Level 3 assets (3) | $ | 259,235 | $ | 7,687 | $ | 266,922 | $ | 189,452 | $ | 5,618 | $ | 195,070 | |||||||||||||||||||||||||||||||||||||
Total Plan assets at fair value | $ | 759,105 | $ | 45,152 | $ | 804,257 | $ | 723,229 | $ | 42,575 | $ | 765,804 | |||||||||||||||||||||||||||||||||||||
Insurance company general account contracts (4) | 4,003 | — | 4,003 | 4,296 | — | 4,296 | |||||||||||||||||||||||||||||||||||||||||||
Total Plan assets (5) | $ | 763,108 | $ | 45,152 | $ | 808,260 | $ | 727,525 | $ | 42,575 | $ | 770,100 | |||||||||||||||||||||||||||||||||||||
-1 | Common stock, Real Estate Investment Trusts, Mutual funds, and U.S. Government securities listed or regularly traded on a national securities exchange are valued at quoted market prices as of the last business day of the calendar year. | ||||||||||||||||||||||||||||||||||||||||||||||||
The Mutual funds category above is an intermediate-term bond fund whose manager employs multiple concurrent strategies and takes only moderate risk in each, thereby reducing the risk of poor performance arising from any single source, and a balanced fund that invests in a diversified portfolio of common stocks, preferred stocks and fixed-income securities. Strategies utilized by the bond fund include duration management, yield curve or maturity structuring, sector rotation, and all bottom-up techniques including in-house credit and quantitative research. Strategies employed by the balanced fund include pursuit of regular income, conservation of principal, and an opportunity for long-term growth of principal and income. | |||||||||||||||||||||||||||||||||||||||||||||||||
-2 | The fair value of investments in debt securities with remaining maturities of one year or more is determined by dealers who make markets in such securities or by an independent pricing service, which considers yield or price of bonds of comparable quality, coupon, maturity, and type. | ||||||||||||||||||||||||||||||||||||||||||||||||
The pooled funds and mutual funds are two collective short-term funds that invest in Treasury bills and money market funds. These funds are used as a temporary cash repository for the pension plan’s various investment managers. | |||||||||||||||||||||||||||||||||||||||||||||||||
-3 | Assets not considered Level 1 or Level 2 are valued using assumptions based on the best information available under the circumstances, such as investment manager pricing. | ||||||||||||||||||||||||||||||||||||||||||||||||
The commingled equity funds include private equity funds that invest in domestic and international securities (predominately Level 1 assets) regularly traded on securities exchanges. These funds are shown in the above table at net asset value. Investment strategies employed by the funds include: | |||||||||||||||||||||||||||||||||||||||||||||||||
• | Domestic large capitalization value equities | ||||||||||||||||||||||||||||||||||||||||||||||||
• | International developed countries value and growth equities | ||||||||||||||||||||||||||||||||||||||||||||||||
• | Emerging markets equities | ||||||||||||||||||||||||||||||||||||||||||||||||
• | International small capitalization equities | ||||||||||||||||||||||||||||||||||||||||||||||||
The terms and conditions under which shares in the commingled equity funds may be redeemed vary among the funds; the notice required ranges from one day to 30 days prior to the valuation date (month end). One of the commingled equity funds requires the payment of a minimal impact fee to be applied to redemptions and subscriptions of $5 million or greater; the relative fee diminishes the greater the transaction. Other such funds may impose fees to recover direct costs incurred by the fund at redemption, but are indeterminable prior to redemption. | |||||||||||||||||||||||||||||||||||||||||||||||||
-4 | 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. | ||||||||||||||||||||||||||||||||||||||||||||||||
-5 | The assets in the above table exceed the market value of plan assets shown in the funded status table by $8,572,000 (qualified retirement plan – $8,312,000, PBOP – $260,000) and $7,842,000 (qualified retirement plan – $7,581,000, PBOP – $261,000) for 2014 and 2013, respectively, which includes a payable for securities purchased, partially offset by receivables for interest, dividends, and securities sold. | ||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effect of Significant Unobservable Inputs | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||||||
Commingled Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Funds | |||||||||||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars): | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 127,467 | |||||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets still held at the reporting date | 21,903 | ||||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets sold during the period | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 45,700 | ||||||||||||||||||||||||||||||||||||||||||||||||
Sales | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2013 | 195,070 | ||||||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets still held at the reporting date | (6,932 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets sold during the period | 2,069 | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 82,615 | ||||||||||||||||||||||||||||||||||||||||||||||||
Sales | (5,900 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Settlements | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2014 | $ | 266,922 | |||||||||||||||||||||||||||||||||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||
Schedule of Stock-Based Plan Compensation Expense, Including Cash Award | The table below shows total stock-based plan compensation expense, including the cash award, which was recognized in the consolidated statements of income (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Stock-based compensation plan expense, net of related tax benefits | $ | 8,130 | $ | 8,012 | $ | 7,396 | |||||||||||||||||||
Stock-based compensation plan related tax benefits | 4,983 | 4,910 | 4,533 | ||||||||||||||||||||||
Schedule of Stock Options Activity | The following tables summarize Company stock option plan activity and related information (thousands of options): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Number of | Weighted- | Number of | Weighted- | Number of | Weighted- | ||||||||||||||||||||
options | average | options | average | options | average | ||||||||||||||||||||
exercise price | exercise price | exercise price | |||||||||||||||||||||||
Outstanding at the beginning of the year | 52 | $ | 27.57 | 125 | $ | 28.13 | 177 | $ | 27.28 | ||||||||||||||||
Exercised during the year | (16 | ) | 24.31 | (72 | ) | 28.44 | (52 | ) | 25.25 | ||||||||||||||||
Forfeited or expired during the year | — | — | (1 | ) | 33.07 | — | — | ||||||||||||||||||
Outstanding and exercisable at year end | 36 | $ | 28.97 | 52 | $ | 27.57 | 125 | $ | 28.13 | ||||||||||||||||
Schedule of Aggregate Intrinsic Value of Outstanding and Exercisable Options | The aggregate intrinsic value of outstanding and exercisable options, and options that were exercised, are presented in the table below (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Outstanding and exercisable | $ | 1,194 | $ | 1,473 | $ | 1,788 | |||||||||||||||||||
Exercised | 451 | 1,402 | 928 | ||||||||||||||||||||||
Summary of Market Prices of Common Stock | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||
Market value of Southwest Gas stock | $ | 61.81 | $ | 55.91 | $ | 42.41 | |||||||||||||||||||
Schedule of Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding at December 31, 2014 (thousands of options): | ||||||||||||||||||||||||
Options Outstanding and Exercisable | |||||||||||||||||||||||||
Range of | Number outstanding | Weighted-average | Weighted-average | ||||||||||||||||||||||
Exercise Price | remaining contractual life | exercise price | |||||||||||||||||||||||
$25.00 to $26.10 | 17 | 0.5 Years | $ | 25.71 | |||||||||||||||||||||
$29.08 to $33.07 | 19 | 1.5 Years | $ | 31.83 | |||||||||||||||||||||
Schedule of Nonvested Performance and Restricted Stock Unit Plans | The following table summarizes the activity of the performance share stock and restricted stock/unit plans as of December 31, 2014 (thousands of shares): | ||||||||||||||||||||||||
Performance | Weighted- | Restricted | Weighted- | ||||||||||||||||||||||
Shares | average | Stock/ | average | ||||||||||||||||||||||
grant date | Units | grant date | |||||||||||||||||||||||
fair value | fair value | ||||||||||||||||||||||||
Nonvested/unissued at beginning of year | 323 | $ | 39.16 | 245 | $ | 38 | |||||||||||||||||||
Granted | 77 | 53.73 | 83 | 53.73 | |||||||||||||||||||||
Dividends | 7 | 7 | |||||||||||||||||||||||
Forfeited or expired | — | — | — | — | |||||||||||||||||||||
Vested and issued* | (136 | ) | 36.23 | (78 | ) | 40.87 | |||||||||||||||||||
Nonvested/unissued at December 31, 2014 | 271 | $ | 43.71 | 257 | $ | 41.22 | |||||||||||||||||||
* | Includes shares for retiree payouts and those converted for taxes. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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 (thousands of dollars): | ||||||||||||
Year ended December 31, | 2014 | 2013 | 2012 | ||||||||||
U.S. | $ | 221,471 | $ | 222,815 | $ | 207,915 | |||||||
Foreign | (1,950 | ) | — | — | |||||||||
Total income before income taxes | $ | 219,521 | $ | 222,815 | $ | 207,915 | |||||||
Summary of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following (thousands of dollars): | ||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
Federal | $ | 1,739 | $ | 3,549 | $ | 2,296 | |||||||
State | 5,073 | 5,107 | 5,744 | ||||||||||
Foreign | 2,193 | — | — | ||||||||||
9,005 | 8,656 | 8,040 | |||||||||||
Deferred: | |||||||||||||
Federal | 71,439 | 67,414 | 65,551 | ||||||||||
State | 614 | 1,872 | 1,685 | ||||||||||
Foreign | (2,685 | ) | — | — | |||||||||
69,368 | 69,286 | 67,236 | |||||||||||
Total income tax expense | $ | 78,373 | $ | 77,942 | $ | 75,276 | |||||||
Significant Components of Deferred Income Tax Expense (Benefit) | Deferred income tax expense (benefit) consists of the following significant components (thousands of dollars): | ||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Deferred federal and state: | |||||||||||||
Property-related items | $ | 52,814 | $ | 62,737 | $ | 64,249 | |||||||
Purchased gas cost adjustments | 15,049 | 16,189 | 1,755 | ||||||||||
Employee benefits | 109 | (2,769 | ) | 564 | |||||||||
All other deferred | 2,257 | (6,010 | ) | 1,529 | |||||||||
Total deferred federal and state | 70,229 | 70,147 | 68,097 | ||||||||||
Deferred ITC, net | (861 | ) | (861 | ) | (861 | ) | |||||||
Total deferred income tax expense | $ | 69,368 | $ | 69,286 | $ | 67,236 | |||||||
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 for 2012, 2013, and 2014 (and the sources of these differences and the effect of each) are summarized as follows: | ||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
U.S. federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||||
Net state taxes | 1.9 | 2.4 | 2.6 | ||||||||||
Property-related items | 0.1 | 0.1 | 0.2 | ||||||||||
Tax credits | (0.5 | ) | (0.4 | ) | (0.4 | ) | |||||||
Company owned life insurance | (1.0 | ) | (2.1 | ) | (1.3 | ) | |||||||
All other differences | 0.2 | — | 0.1 | ||||||||||
Consolidated effective income tax rate | 35.7 | % | 35 | % | 36.2 | % | |||||||
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of the following (thousands of dollars): | ||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Deferred income taxes for future amortization of ITC | $ | 2,146 | $ | 2,679 | |||||||||
Employee benefits | 31,557 | 25,591 | |||||||||||
Alternative minimum tax credit | 20,172 | 19,739 | |||||||||||
Net operating losses and credits | 9,719 | 15,113 | |||||||||||
Interest rate swap | 8,622 | 9,893 | |||||||||||
Other | 25,872 | 22,334 | |||||||||||
Valuation allowance | (253 | ) | (200 | ) | |||||||||
97,835 | 95,149 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Property-related items, including accelerated depreciation | 736,810 | 694,024 | |||||||||||
Regulatory balancing accounts | 33,736 | 18,688 | |||||||||||
Property-related items previously flowed through | 28 | 836 | |||||||||||
Unamortized ITC | 3,410 | 4,271 | |||||||||||
Debt-related costs | 5,066 | 4,713 | |||||||||||
Intangibles | 12,792 | — | |||||||||||
Other | 27,572 | 15,898 | |||||||||||
819,414 | 738,430 | ||||||||||||
Net deferred tax liabilities | 721,579 | 643,281 | |||||||||||
Current | (2,109 | ) | (31,130 | ) | |||||||||
Noncurrent | 723,688 | 674,411 | |||||||||||
Net deferred tax liabilities | $ | 721,579 | $ | 643,281 | |||||||||
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (thousands of dollars): | ||||||||||||
2014 | 2013 | ||||||||||||
Unrecognized tax benefits at beginning of year | $ | — | $ | — | |||||||||
Gross increases-tax positions in prior period | 305 | — | |||||||||||
Gross decreases-tax positions in prior period | — | — | |||||||||||
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 | $ | 305 | $ | — | |||||||||
Summary of Tax-Related Interest Income | Tax-related interest income included in income tax expense in the consolidated statements of income is shown in the table below (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax-related interest income | $ | — | $ | — | $ | 24 |
Derivatives_and_Fair_Value_Mea1
Derivatives and Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Notional Amounts under Swaps Contracts | The differential is calculated based on the notional amounts under the contracts, which are detailed in the table below (thousands of dekatherms): | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Contract notional amounts | 5,105 | 13,571 | |||||||||||||||
Amount of Gain or Losses Recognized in Income on Derivatives | The following table sets forth the gains and (losses) recognized on the Company’s Swaps (derivatives) for the years ended December 31, 2014, 2013, and 2012 and their location in the Consolidated Statements of Income (thousands of dollars): | ||||||||||||||||
Gains (losses) recognized in income for derivatives not designated as hedging instruments: | |||||||||||||||||
(Thousands of dollars) | |||||||||||||||||
Instrument | Location of Gain or (Loss) | 2014 | 2013 | 2012 | |||||||||||||
Recognized in Income on Derivative | |||||||||||||||||
Swaps | Net cost of gas sold | $ | (2,363 | ) | $ | 976 | $ | (4,854 | ) | ||||||||
Swaps | Net cost of gas sold | 2,363 | * | (976 | )* | 4,854 | * | ||||||||||
Total | $ | — | $ | — | $ | — | |||||||||||
* Represents the impact of regulatory deferral accounting treatment under U.S. GAAP for rate-regulated entities. | |||||||||||||||||
Gains (Losses) Recognized in Other Comprehensive Income for Derivatives as Cash Flow Hedging Instruments | Gains (losses) recognized in other comprehensive income for derivatives designated as cash flow hedging instruments: | ||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||||||
(Thousands of dollars) | |||||||||||||||||
Amount of gain/(loss) realized/unrealized on FSIRS recognized in other comprehensive income on derivative | $ | — | $ | — | $ | 2,959 | |||||||||||
Fair Values of Swaps in Consolidated Balance Sheets | The following table sets forth the fair values of the Company’s Swaps and their location in the Consolidated Balance Sheets (thousands of dollars): | ||||||||||||||||
Fair values of derivatives not designated as hedging instruments: | |||||||||||||||||
December 31, 2014 | Balance Sheet Location | Asset | Liability | Net | |||||||||||||
Instrument | Derivatives | Derivatives | Total | ||||||||||||||
Swaps | Other current liabilities | $ | — | $ | (5,062 | ) | $ | (5,062 | ) | ||||||||
Swaps | Other deferred credits | — | (363 | ) | (363 | ) | |||||||||||
Total | $ | — | $ | (5,425 | ) | $ | (5,425 | ) | |||||||||
31-Dec-13 | Balance Sheet Location | Asset | Liability | Net | |||||||||||||
Instrument | Derivatives | Derivatives | Total | ||||||||||||||
Swaps | Deferred charges and other assets | $ | 257 | $ | (77 | ) | $ | 180 | |||||||||
Swaps | Prepaids and other current assets | 1,054 | (253 | ) | 801 | ||||||||||||
Swaps | Other current liabilities | 126 | (282 | ) | (156 | ) | |||||||||||
Swaps | Other deferred credits | 7 | (11 | ) | (4 | ) | |||||||||||
Total | $ | 1,444 | $ | (623 | ) | $ | 821 | ||||||||||
Paid to and Received from Counterparties for Settlements of Matured Swaps | The following table shows the amounts Southwest paid to and received from counterparties for settlements of matured Swaps. | ||||||||||||||||
Year ended | Year ended | Year ended | |||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(Thousands of dollars) | |||||||||||||||||
Paid to counterparties | $ | 829 | $ | 3,148 | $ | 14,843 | |||||||||||
Received from counterparties | $ | 4,713 | $ | 915 | $ | 634 | |||||||||||
Regulatory Assets/Liabilities Offsetting Derivatives at Fair Value in Consolidated Balance Sheets | The following table details the regulatory assets/(liabilities) offsetting the derivatives at fair value in the Consolidated Balance Sheets (thousands of dollars). | ||||||||||||||||
December 31, 2014 | Balance Sheet Location | Net Total | |||||||||||||||
Instrument | |||||||||||||||||
Swaps | Prepaids and other current assets | $ | 5,062 | ||||||||||||||
Swaps | Deferred charges and other assets | 363 | |||||||||||||||
December 31, 2013 | Balance Sheet Location | Net Total | |||||||||||||||
Instrument | |||||||||||||||||
Swaps | Other deferred credits | $ | (180 | ) | |||||||||||||
Swaps | Other current liabilities | (801 | ) | ||||||||||||||
Swaps | Prepaids and other current assets | 156 | |||||||||||||||
Swaps | Deferred charges and other assets | 4 | |||||||||||||||
Significant Other Observable Inputs | The following table sets forth, by level within the three-level fair value hierarchy that ranks the inputs used to measure fair value by their reliability, the Company’s financial assets and liabilities that were accounted for at fair value (see Note 9 – Pension and Other Post Retirement Benefits for definitions of the levels of the fair value hierarchy): | ||||||||||||||||
Level 2 - Significant other observable inputs | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
(Thousands of dollars) | |||||||||||||||||
Assets at fair value: | |||||||||||||||||
Prepaids and other current assets - Swaps | $ | — | $ | 801 | |||||||||||||
Deferred charges and other assets - Swaps | — | 180 | |||||||||||||||
Liabilities at fair value: | |||||||||||||||||
Other current liabilities - Swaps | (5,062 | ) | (156 | ) | |||||||||||||
Other deferred credits - Swaps | (363 | ) | (4 | ) | |||||||||||||
Net Assets (Liabilities) | $ | (5,425 | ) | $ | 821 | ||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Accounts Receivable for Services | Accounts receivable for these services, which are not eliminated during consolidation, are presented in the table below (in thousands). | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Accounts receivable for Centuri services | $ | 9,169 | $ | 10,787 | |||||||||||||
Schedule of Revenues and Long-Lived Assets by Geographic Area | The following table presents the amount of revenues and long-lived assets by geographic area (thousands of dollars): | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Revenues (a) | |||||||||||||||||
United States | $ | 2,069,513 | $ | 1,950,782 | |||||||||||||
Canada | 52,194 | — | |||||||||||||||
Total | $ | 2,121,707 | $ | 1,950,782 | |||||||||||||
Long-lived assets | |||||||||||||||||
United States | $ | 6,021,476 | 5,674,449 | ||||||||||||||
Canada | 14,475 | — | |||||||||||||||
Total | $ | 6,035,951 | $ | 5,674,449 | |||||||||||||
(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 construction services segments for each of the three years in the period ended December 31, 2014 is as follows (thousands of dollars): | ||||||||||||||||
2014 | Gas | Construction | Adjustments (a) | Total | |||||||||||||
Operations | Services | ||||||||||||||||
Revenues from unaffiliated customers | $ | 1,382,087 | $ | 647,432 | $ | 2,029,519 | |||||||||||
Intersegment sales | — | 92,188 | 92,188 | ||||||||||||||
Total | $ | 1,382,087 | $ | 739,620 | $ | 2,121,707 | |||||||||||
Interest revenue | $ | 2,596 | $ | 6 | $ | 2,602 | |||||||||||
Interest expense | $ | 68,299 | $ | 3,770 | $ | 72,069 | |||||||||||
Depreciation and amortization | $ | 204,144 | $ | 48,883 | $ | 253,027 | |||||||||||
Income tax expense | $ | 63,597 | $ | 14,776 | $ | 78,373 | |||||||||||
Segment net income | $ | 116,872 | $ | 24,254 | $ | 141,126 | |||||||||||
Segment assets | $ | 4,657,709 | $ | 567,405 | $ | (10,599 | ) | $ | 5,214,515 | ||||||||
Capital expenditures | $ | 350,025 | $ | 46,873 | $ | 396,898 | |||||||||||
2013 | Gas | Construction | Adjustments (b) | Total | |||||||||||||
Operations | Services | ||||||||||||||||
Revenues from unaffiliated customers | $ | 1,300,154 | $ | 562,475 | $ | 1,862,629 | |||||||||||
Intersegment sales | — | 88,153 | 88,153 | ||||||||||||||
Total | $ | 1,300,154 | $ | 650,628 | $ | 1,950,782 | |||||||||||
Interest revenue | $ | 456 | $ | 5 | $ | 461 | |||||||||||
Interest expense | $ | 62,555 | $ | 1,145 | $ | 63,700 | |||||||||||
Depreciation and amortization | $ | 193,848 | $ | 42,969 | $ | 236,817 | |||||||||||
Income tax expense | $ | 65,377 | $ | 12,565 | $ | 77,942 | |||||||||||
Segment net income | $ | 124,169 | $ | 21,151 | $ | 145,320 | |||||||||||
Segment assets | $ | 4,272,029 | $ | 293,811 | $ | (666 | ) | $ | 4,565,174 | ||||||||
Capital expenditures | $ | 314,578 | $ | 49,698 | $ | 364,276 | |||||||||||
2012 | Gas | Construction | Adjustments | Total | |||||||||||||
Operations | Services | ||||||||||||||||
Revenues from unaffiliated customers | $ | 1,321,728 | $ | 522,676 | $ | 1,844,404 | |||||||||||
Intersegment sales | — | 83,374 | 83,374 | ||||||||||||||
Total | $ | 1,321,728 | $ | 606,050 | $ | 1,927,778 | |||||||||||
Interest revenue | $ | 915 | $ | 9 | $ | 924 | |||||||||||
Interest expense | $ | 66,957 | $ | 1,063 | $ | 68,020 | |||||||||||
Depreciation and amortization | $ | 186,035 | $ | 37,387 | $ | 223,422 | |||||||||||
Income tax expense | $ | 64,973 | $ | 10,303 | $ | 75,276 | |||||||||||
Segment net income | $ | 116,619 | $ | 16,712 | $ | 133,331 | |||||||||||
Segment assets | $ | 4,204,948 | $ | 283,109 | $ | 4,488,057 | |||||||||||
Capital expenditures | $ | 308,951 | $ | 86,761 | $ | 395,712 | |||||||||||
(a) | Construction services segment assets include two liabilities that were netted against gas operations segment assets during consolidation in 2014. They are: Income taxes payable of $3.3 million, netted against income taxes receivable, net and deferred income taxes of $1.4 million, netted against deferred income taxes, net. Construction services segment assets exclude a long-term deferred tax benefit of $1.4 million, which was netted against gas operations segment deferred income taxes and investment tax credits, net during consolidation. Gas operations segment assets include a deferred income tax liability of $4.5 million, which was netted against a construction services segment asset for deferred income taxes, net during consolidation. | ||||||||||||||||
(b) | Construction services segment assets include income taxes payable of $666,000 in 2013, which was netted against gas operations segment income taxes receivable, net during consolidation. |
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
(Thousands of dollars, except per share amounts) | |||||||||||||||||
2014 | |||||||||||||||||
Operating revenues | $ | 608,396 | $ | 453,153 | $ | 432,475 | $ | 627,683 | |||||||||
Operating income | 127,065 | 26,755 | 18,290 | 112,373 | |||||||||||||
Net income | 70,697 | 9,627 | 1,927 | 58,897 | |||||||||||||
Net income attributable to Southwest Gas Corporation | 70,783 | 9,627 | 1,970 | 58,746 | |||||||||||||
Basic earnings per common share* | 1.52 | 0.21 | 0.04 | 1.26 | |||||||||||||
Diluted earnings per common share* | 1.51 | 0.21 | 0.04 | 1.25 | |||||||||||||
2013 | |||||||||||||||||
Operating revenues | $ | 613,505 | $ | 411,574 | $ | 387,346 | $ | 538,357 | |||||||||
Operating income | 138,394 | 28,908 | 6,141 | 100,772 | |||||||||||||
Net income (loss) | 80,674 | 10,067 | (3,057 | ) | 57,189 | ||||||||||||
Net income (loss) attributable to Southwest Gas Corporation | 80,773 | 10,108 | (2,864 | ) | 57,303 | ||||||||||||
Basic earnings (loss) per common share* | 1.75 | 0.22 | (0.06 | ) | 1.24 | ||||||||||||
Diluted earnings (loss) per common share* | 1.73 | 0.22 | (0.06 | ) | 1.22 | ||||||||||||
2012 | |||||||||||||||||
Operating revenues | $ | 657,645 | $ | 409,768 | $ | 371,799 | $ | 488,566 | |||||||||
Operating income | 134,623 | 15,380 | 6,310 | 115,211 | |||||||||||||
Net income (loss) | 78,835 | (3,888 | ) | (4,414 | ) | 62,106 | |||||||||||
Net income (loss) attributable to Southwest Gas Corporation | 78,919 | (3,676 | ) | (4,305 | ) | 62,393 | |||||||||||
Basic earnings (loss) per common share* | 1.71 | (0.08 | ) | (0.09 | ) | 1.35 | |||||||||||
Diluted earnings (loss) per common share* | 1.7 | (0.08 | ) | (0.09 | ) | 1.34 | |||||||||||
* | 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 outstanding. |
Acquisition_of_Construction_Se1
Acquisition of Construction Services Businesses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed | The preliminary estimated fair values of assets acquired and liabilities assumed as of October 1, 2014, are as follows (in millions of dollars): | ||||||||
Cash, cash equivalents, and restricted cash | $ | 3 | |||||||
Contracts receivable and other receivables | 62 | ||||||||
Property, plant and equipment | 17 | ||||||||
Other assets | 17 | ||||||||
Intangible assets | 52 | ||||||||
Goodwill | 130 | ||||||||
Total assets acquired | 281 | ||||||||
Current liabilities | 39 | ||||||||
Deferred income tax—long-term | 17 | ||||||||
Other long-term liabilities | 4 | ||||||||
Net assets acquired | $ | 221 | |||||||
Schedule of Estimated Future Amortization of Intangible Assets Acquired | The estimated future amortization of the intangible assets acquired in the acquisition for the next five years is as follows (in thousands): | ||||||||
2015 | $ | 4,615 | |||||||
2016 | 3,371 | ||||||||
2017 | 3,371 | ||||||||
2018 | 3,123 | ||||||||
2019 | 2,370 | ||||||||
Schedule of Unaudited Pro Forma Consolidated Financial Information | The unaudited pro forma consolidated financial information for fiscal 2014 and fiscal 2013 (assuming the acquisition of Link-Line, W.S. Nicholls, and Brigadier occurred as of the beginning fiscal 2013) is as follows (in thousands of dollars, except per share amounts): | ||||||||
Year Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Total operating revenues | $ | 2,295,318 | $ | 2,203,272 | |||||
Net income attributable to Southwest Gas Corporation | $ | 149,588 | $ | 143,424 | |||||
Basic earnings per share | $ | 3.22 | $ | 3.1 | |||||
Diluted earnings per share | $ | 3.19 | $ | 3.07 | |||||
Schedule of Actual Results Included In Consolidated Statements of Income | Actual results from Link-Line, W.S. Nicholls, and Brigadier operations included in the Consolidated Statements of Income since the date of acquisition are as follows (in thousands of dollars): | ||||||||
Year ended | |||||||||
December 31, 2014 | |||||||||
Construction revenues | $ | 54,264 | |||||||
Net income attributable to Link-Line, W.S. Nicholls, and Brigadier | $ | 1,859 |
Construction_Services_Noncontr1
Construction Services Noncontrolling Interests (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Noncontrolling Interest [Abstract] | |||||
Summary of Redeemable Noncontrolling Interest | |||||
Redeemable | |||||
Noncontrolling | |||||
Interest | |||||
(Thousands of dollars): | |||||
Balance, December 31, 2013 | $ | — | |||
Redeemable noncontrolling interest related to acquisition | 18,952 | ||||
Net Income (loss) attributable to redeemable noncontrolling interest | 151 | ||||
Foreign currency exchange translation adjustment | (22 | ) | |||
Adjustment to redemption value | 961 | ||||
Balance, December 31, 2014 | $ | 20,042 | |||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business | Segment | |||
Business | ||||
Significant Accounting Policies [Line Items] | ||||
Number of segments | 2 | |||
Number of business acquisitions | 3 | 3 | ||
Purchase agreements including debt assumed | $221,000,000 | $190,497,000 | ||
Non-cash construction advances - non-cash investing item | 8,100,000 | 9,300,000 | ||
Non-cash investing outflow activity | 10,800,000 | |||
Goodwill | 143,160,000 | 17,810,000 | ||
Goodwill impairment charges | 0 | |||
Recognized pretax losses, after tax earnings per share impacts | $0.20 | |||
Secured Revolving Credit and Term Loan Facility [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Secured revolving credit and term loan facility | 300,000,000 | |||
Construction Services [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Goodwill | 133,000,000 | |||
Recognized pretax profit/losses | 15,000,000 | |||
Gas Operations [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Goodwill | 10,000,000 | 10,000,000 | ||
Recent Acquisitions [Member] | Construction Services [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Goodwill recognized by acquisition | 125,000,000 | |||
Reduction of goodwill due to foreign currency exchange translation adjustments | 5,000,000 | |||
NPL Construction Co. [Member] | Construction Services [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Goodwill | 8,000,000 | 8,000,000 | ||
Non-controlling Interest [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Non-cash investing outflow activity | 18,900,000 | |||
Pooled funds and mutual funds [Member] | Level 2 - Significant other observable inputs [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Money market fund investments | 250,000 | |||
Capital Lease Obligation [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Non-cash financing inflow activity | 204,000 | |||
Capital Lease Asset [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Non-cash investing outflow activity | 204,000 | |||
Intellichoice Energy, LLC [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Subsidiaries holding interest percentage | 65.00% | |||
W.S. Nicholls Western Construction LTD. [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Subsidiaries holding interest percentage | 50.00% | |||
Investment amount | 14,700,000 | |||
Exposure to loss as a result of its investment | 20,800,000 | |||
Matheson-Nicholls Joint Venture [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Subsidiaries holding interest percentage | 50.00% | |||
CCI-TBN Toronto, Inc [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Subsidiaries holding interest percentage | 25.00% | |||
Gas Pipe Inventory and Operating Supplies [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Gas pipe inventory and operating supplies | $23,000,000 | $21,000,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Schedule of Other Property and Investments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Investment [Line Items] | ||
Net cash surrender value of COLI policies | $99,000,000 | $93,000,000 |
Other property | 10,000,000 | 11,000,000 |
Total | 326,743,000 | 260,871,000 |
Centuri Construction Group [Member] | ||
Investment [Line Items] | ||
Centuri property, equipment, and intangibles | 405,000,000 | 320,000,000 |
Centuri accumulated provision for depreciation and amortization | ($187,000,000) | ($163,000,000) |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Schedule of Accumulated Removal Costs (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accumulated Removal Costs [Abstract] | ||
Accumulated removal costs | $304,000 | $279,000 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Schedule of Capitalized and Debt Portion of AFUDC (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Public Utilities, Allowance for Funds Used During Construction, Net Increase [Abstract] | |||
Debt portion | $1,228 | $1,260 | $1,129 |
Equity portion | 1,995 | 2,274 | 1,943 |
AFUDC capitalized as part of utility plant | $3,223 | $3,534 | $3,072 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Other Income (Deductions) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | |||
Change in COLI policies | $5,300 | $12,400 | $6,600 |
Interest income | 2,602 | 461 | 924 |
Pipe replacement costs | -132 | -2,680 | |
Foreign currency transaction gain (loss) | -178 | ||
Miscellaneous income and (expense) | -617 | -429 | -433 |
Total other income (deductions) | $7,107 | $12,300 | $4,411 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||
Average basic shares | 46,494 | 46,318 | 46,115 |
Stock options | 17 | 26 | 42 |
Performance shares | 215 | 231 | 254 |
Restricted stock units | 218 | 183 | 144 |
Average diluted shares | 46,944 | 46,758 | 46,555 |
Utility_Plant_and_Leases_Sched
Utility Plant and Leases - Schedule of Net Utility Plant (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | $5,556,599 | $5,252,469 |
Less: accumulated depreciation | -1,973,098 | -1,868,504 |
Acquisition adjustments, net | 550 | 730 |
Construction work in progress | 74,332 | 101,413 |
Net utility plant | 3,658,383 | 3,486,108 |
Storage [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 22,531 | 21,282 |
Transmission [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 312,300 | 313,306 |
Distribution [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 4,655,640 | 4,410,598 |
General [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 356,072 | 324,490 |
Software and software-related intangibles [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 196,035 | 168,815 |
Other [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | $14,021 | $13,978 |
Utility_Plant_and_Leases_Sched1
Utility Plant and Leases - Schedule of Depreciation and Amortization Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $253,027 | $236,817 | $223,422 |
Gas plant [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $194,360 | $185,283 | $182,612 |
Utility_Plant_and_Leases_Addit
Utility Plant and Leases - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Regulated Operations [Abstract] | ||||
Amortization of intangibles | $11.70 | $10.30 | $9.30 | |
Purchase of portion of corporate headquarters office complex | $16.50 |
Utility_Plant_and_Leases_Sched2
Utility Plant and Leases - Schedule of Rental Payments for Operating Leases (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Rental Payments And Lease Payments Included In Operating Expenses [Line Items] | |||
Consolidated rental payments/lease expense | $35,342 | $35,426 | $31,816 |
Southwest Gas [Member] | |||
Rental Payments And Lease Payments Included In Operating Expenses [Line Items] | |||
Consolidated rental payments/lease expense | 5,330 | 8,308 | 7,762 |
Centuri Construction Group [Member] | |||
Rental Payments And Lease Payments Included In Operating Expenses [Line Items] | |||
Consolidated rental payments/lease expense | $30,012 | $27,118 | $24,054 |
Utility_Plant_and_Leases_Sched3
Utility Plant and Leases - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | |
2015 | $5,957 |
2016 | 4,236 |
2017 | 2,532 |
2018 | 1,582 |
2019 | 912 |
Thereafter | 831 |
Total minimum lease payments | $16,050 |
Utility_Plant_and_Leases_Sched4
Utility Plant and Leases - Schedule of Capital Leases of Equipment (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | |
Capital leases of equipment | $5,763 |
Less: accumulated amortization | -287 |
Net capital leases | $5,476 |
Utility_Plant_and_Leases_Sched5
Utility Plant and Leases - Schedule of Future Minimum Lease Payments for Capital Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | |
2015 | $1,690 |
2016 | 1,632 |
2017 | 813 |
2018 | 591 |
2019 | 0 |
Thereafter | 0 |
Future minimum lease payments due | 4,726 |
Less: amount representing interest | -497 |
Total minimum lease payments | $4,229 |
Receivables_and_Related_Allowa2
Receivables and Related Allowances - Schedule of Accounts Receivable (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Receivables [Abstract] | |
Gas utility customer accounts receivable balance | $136,148 |
Receivables_and_Related_Allowa3
Receivables and Related Allowances - Schedule of Percent of Customers by State (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Arizona [Member] | |
Receivables And Related Allowances [Line Items] | |
Percent of customers by state | 53.00% |
Nevada [Member] | |
Receivables And Related Allowances [Line Items] | |
Percent of customers by state | 37.00% |
California [Member] | |
Receivables And Related Allowances [Line Items] | |
Percent of customers by state | 10.00% |
Receivables_and_Related_Allowa4
Receivables and Related Allowances - Schedule of Allowance for Uncollectibles (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | |||
Beginning Balance | $1,725 | $2,504 | $3,182 |
Additions charged to expense | 4,146 | 3,583 | 2,471 |
Accounts written off, less recoveries | -3,616 | -4,362 | -3,149 |
Ending Balance | $2,255 | $1,725 | $2,504 |
Receivables_and_Related_Allowa5
Receivables and Related Allowances - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables And Related Allowances [Line Items] | ||
Customer accounts receivable | $281,824 | $219,469 |
Centuri Construction Group [Member] | ||
Receivables And Related Allowances [Line Items] | ||
Customer accounts receivable | $142,000 |
Regulatory_Assets_and_Liabilit2
Regulatory Assets and Liabilities - Schedule of Regulatory Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, total | $578,484 | $368,421 |
Net regulatory assets | 229,274 | 50,307 |
Accrued pension and other postretirement benefit costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, total | 390,293 | 249,985 |
Unrealized net loss on non-trading derivatives (Swaps) [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, total | 5,425 | 160 |
Deferred purchased gas costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, total | 87,556 | 18,217 |
Accrued purchased gas costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, total | 2,600 | 31,500 |
Unamortized premium on reacquired debt [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, total | 20,478 | 19,614 |
Other [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, total | 72,132 | 48,945 |
Accumulated removal costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities, total | -304,000 | -279,000 |
Unrealized net gain on non-trading derivatives (Swaps) [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities, total | -981 | |
Deferred gain on southern Nevada division operations facility [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities, total | -115 | -253 |
Unamortized gain on reacquired debt [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities, total | -10,862 | -11,398 |
Other [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities, total | ($34,233) | ($26,482) |
Regulatory_Assets_and_Liabilit3
Regulatory Assets and Liabilities - Schedule of Regulatory Assets and Liabilities (Parenthetical) (Detail) (Swaps [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred charges and other assets [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets and liabilities offsetting derivatives at fair value | $363 | $4 |
Prepaids and other current assets [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets and liabilities offsetting derivatives at fair value | 5,062 | 156 |
Other current liabilities [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets and liabilities offsetting derivatives at fair value | -801 | |
Other deferred credits [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets and liabilities offsetting derivatives at fair value | ($180) |
Other_Comprehensive_Income_and2
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") - Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | |||
Net actuarial gain/(loss), Before-Tax Amount | ($173,646) | $100,345 | ($74,853) |
Amortization of prior service cost, Before-Tax Amount | 355 | 355 | |
Amortization of transition obligation, Before-Tax Amount | 867 | ||
Amortization of net actuarial (gain)/loss, Before-Tax Amount | 23,656 | 34,177 | 25,597 |
Prior service cost, Before-Tax Amount | -6,661 | -2,423 | |
Regulatory adjustment, Before-Tax Amount | 140,308 | -123,630 | 42,771 |
Net current period other comprehensive income (loss), Defined Benefit Plans Before-Tax | -15,988 | 11,247 | -8,041 |
Unrealized/realized gain (loss), Before-Tax Amount | 2,959 | ||
Amounts reclassified into net income, Before-Tax Amount | 3,345 | 3,345 | 2,801 |
FSIRS other comprehensive income (loss), Before-Tax Amount | 3,345 | 3,345 | 5,760 |
Translation adjustments, Before-Tax Amount | -659 | ||
Foreign currency other comprehensive income (loss), Before-Tax Amount | -659 | ||
Total other comprehensive income (loss), Before-Tax Amount | -13,302 | 14,592 | -2,281 |
Net actuarial gain/(loss), Tax (Expense) or Benefit | 65,985 | -38,131 | 28,444 |
Amortization of prior service cost, Tax (Expense) or Benefit | -135 | -135 | |
Amortization of transition obligation, Tax (Expense) or Benefit | -329 | ||
Amortization of net actuarial (gain)/loss, Tax (Expense) or Benefit | -8,989 | -12,987 | -9,727 |
Prior service cost, Tax (Expense) or Benefit | 2,531 | 921 | |
Regulatory adjustment, Tax (Expense) or Benefit | -53,317 | 46,979 | -16,253 |
Net current period other comprehensive income (loss), Defined Benefit Plans Tax (Expense) Benefit | 6,075 | -4,274 | 3,056 |
Unrealized/realized gain (loss), Tax (Expense) or Benefit | -1,125 | ||
Amounts reclassified into net income, Tax (Expense) or Benefit | -1,272 | -1,271 | -1,064 |
FSIRS other comprehensive income (loss), Tax (Expense) or Benefit | -1,272 | -1,271 | -2,189 |
Translation adjustments, Tax (Expense) or Benefit | 0 | 0 | 0 |
Foreign currency other comprehensive income (loss), Tax (Expense) or Benefit | 0 | 0 | 0 |
Total other comprehensive income (loss), Tax (Expense) or Benefit | 4,803 | -5,545 | 867 |
Net actuarial gain/(loss), Net-of-Tax Amount | -107,661 | 62,214 | -46,409 |
Amortization of prior service cost, Net-of-Tax Amount | 220 | 220 | |
Amortization of transition obligation, Net-of-Tax Amount | 538 | ||
Amortization of net actuarial (gain)/loss, Net-of-Tax Amount | 14,667 | 21,190 | 15,870 |
Prior service cost, Net-of-Tax Amount | -4,130 | -1,502 | |
Regulatory adjustment, Net-of-Tax Amount | 86,991 | -76,651 | 26,518 |
Net defined benefit pension plans | -9,913 | 6,973 | -4,985 |
Unrealized/realized loss, Net-of-Tax Amount | 1,834 | ||
Amounts reclassified into net income (Notes 5 and 12) | 2,073 | 2,074 | 1,737 |
FSIRS other comprehensive income (loss), Net-of-Tax Amount | 2,073 | 2,074 | 3,571 |
Translation adjustments, Net-of-Tax Amount | -659 | ||
Foreign currency other comprehensive income (loss), Net-of-Tax Amount | -659 | ||
Total other comprehensive income (loss), net of tax | ($8,499) | $9,047 | ($1,414) |
Other_Comprehensive_Income_and3
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") - Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) (Parenthetical) (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Other comprehensive income loss, effective income tax rate | 38.00% |
Tax expense or benefit for currency translation adjustment | $0 |
Other_Comprehensive_Income_and4
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") - Additional Information (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Equity [Abstract] | |
Amount of FSIRS existing AOCI losses expected to reclassified income in next twelve months | $2.10 |
Other_Comprehensive_Income_and5
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) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Qualified Retirement Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement plan net actuarial loss | $33,000 |
SERP [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement plan net actuarial loss | 1,300 |
PBOP [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement plan net actuarial loss | 300 |
PBOP prior service cost | $1,300 |
Other_Comprehensive_Income_and6
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") - Rollforward of Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance AOCI December 31, 2013, Defined Benefit Plans Before-Tax | ($41,223) | ||
Net actuarial gain/(loss), Defined Benefit Plans Before-Tax | -173,646 | 100,345 | -74,853 |
Translation adjustments, Defined Benefit Plans Before-Tax | 0 | ||
FSIRS amounts reclassified from AOCI, FSIRS - Tax (Expense) Benefit | -1,272 | -1,271 | -1,064 |
Amortization of prior service costs, Defined Benefit Plans Before-Tax | 355 | 355 | |
Amortization of net actuarial loss, Defined Benefit Plans Before-Tax | 23,656 | 34,177 | 25,597 |
Prior service cost, Defined Benefit Plans Before-Tax | -6,661 | -2,423 | |
Regulatory adjustment, Defined Benefit Plans Before-Tax | 140,308 | -123,630 | 42,771 |
Net current period other comprehensive income (loss), Defined Benefit Plans Before-Tax | -15,988 | 11,247 | -8,041 |
Less: Translation adjustment attributable to redeemable noncontrolling interest, Defined Benefit Plans Before-Tax | 0 | ||
Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation, Defined Benefit Plans Before-Tax | -15,988 | ||
Ending Balance AOCI December 31, 2014, Defined Benefit Plans Before-Tax | -57,211 | -41,223 | |
Beginning Balance AOCI December 31, 2013, Defined Benefit Plans Tax (Expense) Benefit | 15,665 | ||
Net actuarial gain/(loss), Tax Expense or Benefit | 65,985 | -38,131 | 28,444 |
Translation adjustments, Defined Benefit Plans Tax (Expense) Benefit | 0 | ||
Amortization of prior service costs, Defined Benefit Plans Tax (Expense) Benefit | -135 | -135 | |
Amortization of net actuarial loss, Defined Benefit Plans Tax (Expense) Benefit | -8,989 | -12,987 | -9,727 |
Prior service cost, Defined Benefit Plans Tax (Expense) Benefit | 2,531 | 921 | |
Regulatory adjustment, Defined Benefit Plans Tax (Expense) Benefit | -53,317 | 46,979 | -16,253 |
Net current period other comprehensive income (loss), Defined Benefit Plans Tax (Expense) Benefit | 6,075 | -4,274 | 3,056 |
Less: Translation adjustment attributable to redeemable noncontrolling interest, Defined Benefit Plans Tax (Expense) Benefit | 0 | ||
Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation, Defined Benefit Plans Tax (Expense) Benefit | 6,075 | ||
Ending Balance AOCI December 31, 2014 Defined Benefit Plans Tax (Expense) Benefit | 21,740 | 15,665 | |
Beginning Balance AOCI December 31, 2013, Defined Benefit Plans After-Tax | -25,558 | ||
Net actuarial gain/(loss), Defined Benefit Plans After-Tax | -107,661 | 62,214 | -46,409 |
Translation adjustments, Defined Benefit Plans After-Tax | 0 | ||
Amortization of prior service costs, Defined Benefit Plans After-Tax | 220 | 220 | |
Amortization of net actuarial (gain)/loss, Net-of-Tax Amount | 14,667 | 21,190 | 15,870 |
Prior service cost | -4,130 | -1,502 | |
Regulatory adjustment, Defined Benefit Plans After-Tax | 86,991 | ||
Net defined benefit pension plans | -9,913 | 6,973 | -4,985 |
Less: Translation adjustment attributable to redeemable noncontrolling interest, Defined Benefit Plans After-Tax | 0 | ||
Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation, Defined Benefit Plans After-Tax | -9,913 | ||
Ending Balance AOCI December 31, 2014, Defined Benefit Plans After-Tax | -35,471 | -25,558 | |
Beginning Balance AOCI December 31, 2013, FSIRS - Before-Tax | -26,033 | ||
FSIRS amounts reclassified from AOCI, FSIRS - Before-Tax | 3,345 | 3,345 | 2,801 |
FSIRS other comprehensive income (loss), Before-Tax Amount | 3,345 | 3,345 | 5,760 |
Less: Translation adjustment attributable to redeemable noncontrolling interest, FSIRS - Before-Tax | 0 | ||
Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation, FSIRS - Before-Tax | 3,345 | ||
Ending Balance AOCI December 31, 2014, FSIRS - Before-Tax | -22,688 | -26,033 | |
Beginning Balance AOCI December 31, 2013, FSIRS - Tax (Expense) Benefit | 9,893 | ||
FSIRS other comprehensive income (loss), Tax (Expense) or Benefit | -1,272 | -1,271 | -2,189 |
Less: Translation adjustment attributable to redeemable noncontrolling interest, FSIRS - Tax (Expense) Benefit | 0 | ||
Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation, FSIRS - Tax (Expense) Benefit | -1,272 | ||
Ending Balance AOCI September 30, 2014, FSIRS - Tax (Expense) Benefit | 8,621 | 9,893 | |
Beginning Balance AOCI December 31, 2013, FSIRS - After-Tax | -16,140 | ||
FSIRS amounts reclassified from AOCI, FSIRS - After-Tax | 2,073 | 2,074 | 1,737 |
Net forward-starting interest rate swaps | 2,073 | 2,074 | 3,571 |
Less: Translation adjustment attributable to redeemable noncontrolling interest, FSIRS - After-Tax | 0 | ||
Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation, FSIRS - After-Tax | 2,073 | ||
Ending Balance AOCI December 31, 2014, FSIRS - After-Tax | -14,067 | -16,140 | |
Net actuarial gain/(loss), Foreign Currency Items Before-Tax | 0 | ||
Translation adjustments, Foreign Currency Items Before-Tax | -659 | ||
Other comprehensive income before reclassifications, Foreign Currency Items Before-Tax | -659 | ||
FSIRS amounts reclassified from AOCI, Foreign Currency Items Before-Tax | 0 | ||
Amortization of prior service cost, Foreign Currency Items Before-Tax | 0 | ||
Amortization of net actuarial loss, Foreign Currency Items Before-Tax | 0 | ||
Prior service cost, Foreign Currency Items Before-Tax | 0 | ||
Regulatory adjustment, Foreign Currency Items Before-Tax | 0 | ||
Net current period other comprehensive income (loss), Foreign Currency Items Before-Tax | -659 | ||
Less: Translation adjustment attributable to redeemable noncontrolling interest, Foreign Currency Items Before-Tax | -22 | ||
Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation, Foreign Currency Items Before-Tax | -659 | ||
Ending Balance AOCI December 31, 2014, Foreign Currency Items Before-Tax | -637 | ||
Beginning Balance AOCI December 31, 2013,Foreign Currency items - Tax (Expense) Benefit | 0 | ||
Net actuarial gain/(loss),Foreign Currency items - Tax (Expense) Benefit | 0 | ||
Translation adjustments,Foreign Currency items - Tax (Expense) Benefit | 0 | 0 | 0 |
Other comprehensive income before reclassifications,Foreign Currency items - Tax (Expense) Benefit | 0 | ||
FSIRS amounts reclassified from AOCI ,Foreign Currency items - Tax (Expense) Benefit | 0 | ||
Amortization of prior service cost ,Foreign Currency items - Tax (Expense) Benefit | 0 | ||
Amortization of net actuarial loss,Foreign Currency items - Tax (Expense) Benefit | 0 | ||
Prior service cost ,Foreign Currency items - Tax (Expense) Benefit | 0 | ||
Regulatory adjustment,Foreign Currency items - Tax (Expense) Benefit | 0 | ||
Net current period other comprehensive income (loss),Foreign Currency items - Tax (Expense) Benefit | 0 | ||
Less: Translation adjustment attributable to redeemable noncontrolling interest ,Foreign Currency items - Tax (Expense) Benefit | 0 | ||
Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation , Foreign Currency items - Tax (Expense) Benefit | 0 | 0 | 0 |
Ending Balance AOCI December 31, 2014,Foreign Currency items - Tax (Expense) Benefit | 0 | 0 | |
Net actuarial gain/(loss), Foreign Currency items - After-Tax | 0 | ||
Translation adjustments, Foreign Currency items - After-Tax | -659 | ||
Other comprehensive income before reclassifications, Foreign Currency items - After-Tax | -659 | ||
FSIRS amounts reclassified from AOCI, Foreign Currency items - After-Tax | 0 | ||
Amortization of prior service cost, Foreign Currency items - After-Tax | 0 | ||
Amortization of net actuarial loss, Foreign Currency items - After-Tax | 0 | ||
Prior service cost, Foreign Currency items - After-Tax | 0 | ||
Regulatory adjustment, Foreign Currency items - After-Tax | 0 | ||
Net current period other comprehensive income (loss), Foreign Currency items - After-Tax | -659 | ||
Less: Translation adjustment attributable to redeemable noncontrolling interest, Foreign Currency items - After-Tax | -22 | ||
Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation, Foreign Currency Items - After-Tax | -659 | ||
Ending Balance AOCI December 31, 2014, Foreign Currency items - After-Tax | -637 | ||
Beginning Balance AOCI December 31, 2013, AOCI | -41,698 | ||
Net actuarial gain/(loss), AOCI | -107,661 | 62,214 | -46,409 |
Translation adjustments, AOCI | -659 | ||
Amounts reclassified into net income (Notes 5 and 12) | 2,073 | 2,074 | 1,737 |
Amortization of prior service cost, AOCI | 220 | 220 | |
Amortization of net actuarial loss | 14,667 | 21,190 | 15,870 |
Prior service cost, AOCI | -4,130 | ||
Regulatory adjustment, AOCI | 86,991 | ||
Net current period other comprehensive income (loss) | -8,499 | ||
Less: Translation adjustment attributable to redeemable noncontrolling interest, AOCI | -22 | ||
Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation, AOCI | -8,477 | ||
Ending Balance AOCI December 31, 2014, AOCI | -50,175 | -41,698 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income before reclassifications, FSIRS - Tax (Expense) Benefit | 0 | ||
FSIRS amounts reclassified from AOCI, FSIRS - Tax (Expense) Benefit | -1,272 | ||
Other comprehensive income before reclassifications, Defined Benefit Plans Before-Tax | -173,646 | ||
Prior service cost, FSIRS - Tax (Expense) Benefit | 0 | ||
Translation adjustments, Defined Benefit Plans Tax (Expense) Benefit | 0 | ||
Other comprehensive income before reclassifications, Defined Benefit Plans Tax (Expense) Benefit | 65,985 | ||
Other comprehensive income before reclassifications, Defined Benefit Plans After-Tax | -107,661 | ||
Translation adjustments, FSIRS - Before-Tax | 0 | ||
Other comprehensive income before reclassifications, FSIRS - Before-Tax | 0 | ||
FSIRS amounts reclassified from AOCI, FSIRS - Before-Tax | 3,345 | ||
Prior service cost, FSIRS - Before-Tax | 0 | ||
Translation adjustments, FSIRS - After-Tax | 0 | ||
Other comprehensive income before reclassifications, FSIRS - After-Tax | 0 | ||
FSIRS amounts reclassified from AOCI, FSIRS - After-Tax | 2,073 | ||
Prior service cost, FSIRS - After-Tax | 0 | ||
Other comprehensive income before reclassifications, AOCI | -108,320 | ||
Amounts reclassified into net income (Notes 5 and 12) | $2,073 |
Other_Comprehensive_Income_and7
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") - Amount Recognized Before Income Tax in Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Prior service cost | $6,661 | $2,423 | |
Less: amount recognized in regulatory assets | 578,484 | 368,421 | |
Recognized in AOCI | -57,211 | -41,223 | |
Defined Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net actuarial (loss) gain | -439,131 | -289,141 | |
Prior service cost | -8,373 | -2,067 | |
Less: amount recognized in regulatory assets | 390,293 | 249,985 | |
Recognized in AOCI | ($57,211) | ($41,223) |
LongTerm_Debt_Schedule_of_Carr
Long-Term Debt - Schedule of Carrying Amounts and Estimated Fair Values of Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 |
Debt Instrument [Line Items] | |||
Less: current maturities | ($19,192,000) | ($11,105,000) | |
Long-term debt, less current maturities | 1,637,592,000 | 1,381,327,000 | |
Notes, 6.1%, due 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 125,000,000 | ||
Carrying Amount [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 1,656,784,000 | 1,392,432,000 | |
Less: current maturities | -19,192,000 | -11,105,000 | |
Long-term debt, less current maturities | 1,637,592,000 | 1,381,327,000 | |
Total long-term debt | 1,656,784,000 | 1,392,432,000 | |
Carrying Amount [Member] | Centuri secured revolving credit and term loan facility [Member] | |||
Debt Instrument [Line Items] | |||
Centuri secured revolving credit and term loan facility | 199,267,000 | ||
Carrying Amount [Member] | Centuri other debt obligations [Member] | |||
Debt Instrument [Line Items] | |||
Centuri other debt obligations | 31,128,000 | 42,213,000 | |
Carrying Amount [Member] | Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 374,112,000 | 438,279,000 | |
Carrying Amount [Member] | Debentures [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized discount | -5,223,000 | -5,560,000 | |
Notes payable | 902,277,000 | 901,940,000 | |
Carrying Amount [Member] | Debentures [Member] | Notes, 4.45%, due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 125,000,000 | 125,000,000 | |
Carrying Amount [Member] | Debentures [Member] | Notes, 6.1%, due 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 125,000,000 | 125,000,000 | |
Carrying Amount [Member] | Debentures [Member] | Notes, 3.875%, due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 250,000,000 | 250,000,000 | |
Carrying Amount [Member] | Debentures [Member] | Notes, 4.875%, due 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 250,000,000 | 250,000,000 | |
Carrying Amount [Member] | Debentures [Member] | 8% Series, due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 75,000,000 | 75,000,000 | |
Carrying Amount [Member] | Debentures [Member] | Medium-term notes, 7.59% series, due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 25,000,000 | 25,000,000 | |
Carrying Amount [Member] | Debentures [Member] | Medium-term notes, 7.78% series, due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 25,000,000 | 25,000,000 | |
Carrying Amount [Member] | Debentures [Member] | Medium-term notes, 7.92% series, due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 25,000,000 | 25,000,000 | |
Carrying Amount [Member] | Debentures [Member] | Medium-term notes, 6.76% series, due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 7,500,000 | 7,500,000 | |
Carrying Amount [Member] | Debentures [Member] | Revolving credit facility and commercial paper [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility | 150,000,000 | 10,000,000 | |
Carrying Amount [Member] | Variable-rate bonds [Member] | Tax-exempt Series A, due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 50,000,000 | 50,000,000 | |
Carrying Amount [Member] | Variable-rate bonds [Member] | 2003 Series A, due 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 50,000,000 | 50,000,000 | |
Carrying Amount [Member] | Variable-rate bonds [Member] | 2008 Series A, due 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 50,000,000 | 50,000,000 | |
Carrying Amount [Member] | Variable-rate bonds [Member] | 2009 Series A, due 2039 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 50,000,000 | 50,000,000 | |
Carrying Amount [Member] | Fixed-rate bonds [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized discount | -1,943,000 | -2,776,000 | |
Carrying Amount [Member] | Fixed-rate bonds [Member] | 5.25% 2003 Series D, due 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 20,000,000 | 20,000,000 | |
Carrying Amount [Member] | Fixed-rate bonds [Member] | 5.25% 2004 Series A, due 2034 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 65,000,000 | ||
Carrying Amount [Member] | Fixed-rate bonds [Member] | 5.00% 2004 Series B, due 2033 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 31,200,000 | 31,200,000 | |
Carrying Amount [Member] | Fixed-rate bonds [Member] | 4.85% 2005 Series A, due 2035 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 100,000,000 | 100,000,000 | |
Carrying Amount [Member] | Fixed-rate bonds [Member] | 4.75% 2006 Series A, due 2036 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 24,855,000 | 24,855,000 | |
Market Value [Member] | Centuri secured revolving credit and term loan facility [Member] | |||
Debt Instrument [Line Items] | |||
Centuri secured revolving credit and term loan facility | 200,341,000 | ||
Market Value [Member] | Centuri other debt obligations [Member] | |||
Debt Instrument [Line Items] | |||
Centuri other debt obligations | 31,127,000 | 42,119,000 | |
Market Value [Member] | Debentures [Member] | Notes, 4.45%, due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 133,403,000 | 130,953,000 | |
Market Value [Member] | Debentures [Member] | Notes, 6.1%, due 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 157,290,000 | 141,873,000 | |
Market Value [Member] | Debentures [Member] | Notes, 3.875%, due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 262,030,000 | 252,485,000 | |
Market Value [Member] | Debentures [Member] | Notes, 4.875%, due 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 280,903,000 | 257,280,000 | |
Market Value [Member] | Debentures [Member] | 8% Series, due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 102,296,000 | 96,263,000 | |
Market Value [Member] | Debentures [Member] | Medium-term notes, 7.59% series, due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 27,573,000 | 28,741,000 | |
Market Value [Member] | Debentures [Member] | Medium-term notes, 7.78% series, due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 31,144,000 | 30,586,000 | |
Market Value [Member] | Debentures [Member] | Medium-term notes, 7.92% series, due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 33,695,000 | 31,497,000 | |
Market Value [Member] | Debentures [Member] | Medium-term notes, 6.76% series, due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, fair value disclosure | 9,156,000 | 8,468,000 | |
Market Value [Member] | Debentures [Member] | Revolving credit facility and commercial paper [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fair value | 150,000,000 | 10,000,000 | |
Market Value [Member] | Variable-rate bonds [Member] | Tax-exempt Series A, due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fair value | 50,000,000 | 50,000,000 | |
Market Value [Member] | Variable-rate bonds [Member] | 2003 Series A, due 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fair value | 50,000,000 | 50,000,000 | |
Market Value [Member] | Variable-rate bonds [Member] | 2008 Series A, due 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fair value | 50,000,000 | 50,000,000 | |
Market Value [Member] | Variable-rate bonds [Member] | 2009 Series A, due 2039 [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fair value | 50,000,000 | 50,000,000 | |
Market Value [Member] | Fixed-rate bonds [Member] | 5.25% 2003 Series D, due 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fair value | 20,277,000 | 20,150,000 | |
Market Value [Member] | Fixed-rate bonds [Member] | 5.25% 2004 Series A, due 2034 [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fair value | 64,522,000 | ||
Market Value [Member] | Fixed-rate bonds [Member] | 5.00% 2004 Series B, due 2033 [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fair value | 31,223,000 | 30,284,000 | |
Market Value [Member] | Fixed-rate bonds [Member] | 4.85% 2005 Series A, due 2035 [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fair value | 100,071,000 | 95,192,000 | |
Market Value [Member] | Fixed-rate bonds [Member] | 4.75% 2006 Series A, due 2036 [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fair value | $25,399,000 | $22,974,000 |
LongTerm_Debt_Schedule_of_Carr1
Long-Term Debt - Schedule of Carrying Amounts and Estimated Fair Values of Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Nov. 30, 2014 | |
Notes, 4.45%, due 2020 [Member] | Debentures [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 4.45% | 4.45% | ||
Debt instrument due date | 1-Dec-20 | 1-Dec-20 | ||
Notes, 6.1%, due 2041 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 6.10% | |||
Notes, 6.1%, due 2041 [Member] | Debentures [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 6.10% | 6.10% | ||
Debt instrument due date | 15-Feb-41 | 15-Feb-41 | ||
Notes, 3.875%, due 2022 [Member] | Debentures [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 3.88% | 3.88% | ||
Debt instrument due date | 1-Apr-22 | 1-Apr-22 | ||
Notes, 4.875%, due 2043 [Member] | Debentures [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 4.88% | 4.88% | ||
Debt instrument due date | 1-Oct-43 | 1-Oct-43 | ||
8% Series, due 2026 [Member] | Debentures [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 8.00% | 8.00% | ||
Debt instrument due date | 1-Aug-26 | 1-Aug-26 | ||
Medium-term notes, 7.59% series, due 2017 [Member] | Debentures [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 7.59% | 7.59% | ||
Debt instrument due date | 17-Jan-17 | 17-Jan-17 | ||
Medium-term notes, 7.78% series, due 2022 [Member] | Debentures [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 7.78% | 7.78% | ||
Debt instrument due date | 3-Feb-22 | 3-Feb-22 | ||
Medium-term notes, 7.92% series, due 2027 [Member] | Debentures [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 7.92% | 7.92% | ||
Debt instrument due date | 4-Jun-27 | 4-Jun-27 | ||
Medium-term notes, 6.76% series, due 2027 [Member] | Debentures [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 6.76% | 6.76% | ||
Debt instrument due date | 24-Sep-27 | 24-Sep-27 | ||
Tax-exempt Series A, due 2028 [Member] | Variable-rate bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument due date | 1-Dec-28 | 1-Dec-28 | ||
2003 Series A, due 2038 [Member] | Variable-rate bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument due date | 1-Mar-38 | 1-Mar-38 | ||
2008 Series A, due 2038 [Member] | Variable-rate bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument due date | 1-Mar-38 | 1-Mar-38 | ||
2009 Series A, due 2039 [Member] | Variable-rate bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument due date | 1-Dec-39 | 1-Dec-39 | ||
5.25% 2003 Series D, due 2038 [Member] | Fixed-rate bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 5.25% | 5.25% | ||
Debt instrument due date | 1-Mar-38 | 1-Mar-38 | ||
5.25% 2004 Series A, due 2034 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 5.25% | |||
5.25% 2004 Series A, due 2034 [Member] | Fixed-rate bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 5.25% | 5.25% | ||
Debt instrument due date | 1-Jul-34 | 1-Jul-34 | ||
5.00% 2004 Series B, due 2033 [Member] | Fixed-rate bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 5.00% | 5.00% | ||
Debt instrument due date | 1-Dec-33 | 1-Dec-33 | ||
4.85% 2005 Series A, due 2035 [Member] | Fixed-rate bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 4.85% | 4.85% | ||
Debt instrument due date | 1-Oct-35 | 1-Oct-35 | ||
4.75% 2006 Series A, due 2036 [Member] | Fixed-rate bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 4.75% | 4.75% | ||
Debt instrument due date | 1-Sep-36 | 1-Sep-36 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Nov. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2014 | |
Debt Instrument [Line Items] | ||||||||
Line of credit designated for working capital purposes | $150,000,000 | $150,000,000 | ||||||
Minimum current borrowing usage | 0 | 0 | ||||||
Maximum current borrowing usage | 165,000,000 | 165,000,000 | ||||||
Redemption of long term debt | 139,155,000 | 137,013,000 | 427,043,000 | |||||
Debt instrument covenant description | Certain Company debt instruments contain securities ratings covenants that, if set in motion, would increase financing costs. Certain debt instruments also have leverage ratio caps and minimum net worth requirements. At December 31, 2014, the Company is in compliance with all of its covenants. | |||||||
Issuance of additional debt | 1,900,000,000 | |||||||
Minimum net worth | 900,000,000 | |||||||
Previous Revolving credit facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | 75,000,000 | |||||||
Credit facility expiration date | 30-Jun-15 | |||||||
Secured Revolving Credit and Term Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | 300,000,000 | |||||||
Credit facility expiration date | 31-Oct-19 | |||||||
Effective interest rate | 3.31% | |||||||
Minimum current borrowing usage | 199,000,000 | |||||||
Maximum current borrowing usage | 232,000,000 | |||||||
Term loans | 142,000,000 | 142,000,000 | ||||||
Secured Revolving Credit and Term Loan Facility [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee | 0.40% | |||||||
Secured Revolving Credit and Term Loan Facility [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee | 0.15% | |||||||
Short-term credit facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility outstanding | 5,000,000 | 5,000,000 | 0 | |||||
Centuri Construction Group [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt secured by assets | 477,000,000 | |||||||
Debt instrument covenant description | Certain Centuri debt instruments have leverage ratio caps and fixed charge ratio coverage requirements. At December 31, 2014, Centuri is in compliance with all of its covenants. | |||||||
Issuance of additional debt | 88,000,000 | |||||||
Equity cushion relating to minimum fixed charge ratio coverage requirement | 35,000,000 | |||||||
LIBOR [Member] | Secured Revolving Credit and Term Loan Facility [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Applicable margin | 2.25% | |||||||
LIBOR [Member] | Secured Revolving Credit and Term Loan Facility [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Applicable margin | 1.00% | |||||||
CDOR [Member] | Secured Revolving Credit and Term Loan Facility [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Applicable margin | 2.25% | |||||||
CDOR [Member] | Secured Revolving Credit and Term Loan Facility [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Applicable margin | 1.00% | |||||||
Alternate Base Rate or Canadian Base Rate [Member] | Secured Revolving Credit and Term Loan Facility [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Applicable margin | 1.25% | |||||||
Alternate Base Rate or Canadian Base Rate [Member] | Secured Revolving Credit and Term Loan Facility [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Applicable margin | 0.00% | |||||||
5.25% 2004 Series A, due 2034 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 5.25% | |||||||
Redemption of long term debt | 65,000,000 | |||||||
Debt instrument original due date | 1-Jul-34 | |||||||
Southwest Gas Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit designated as long term debt | 150,000,000 | |||||||
Line of credit designated for working capital purposes | 150,000,000 | |||||||
Credit facility maximum borrowing capacity | 300,000,000 | |||||||
Credit facility expiration date | 1-Mar-19 | |||||||
Long-term portion of the credit facility | 150,000,000 | 150,000,000 | ||||||
Effective interest rate | 1.21% | |||||||
Southwest Gas Credit Facility [Member] | Before Amendment [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility expiration date | 1-Mar-17 | |||||||
Southwest Gas Credit Facility [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Applicable margin | 1.00% | |||||||
Southwest Gas Credit Facility [Member] | Alternative base rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Applicable margin | 0.00% | |||||||
Commercial paper program [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | 50,000,000 | 50,000,000 | ||||||
Credit facility outstanding | 50,000,000 | 50,000,000 | ||||||
Commercial paper program [Member] | Short-term credit facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective interest rate | 0.65% | |||||||
Notes, 6.1%, due 2041 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 6.10% | |||||||
Notes payable | $125,000,000 | |||||||
Notes, 6.1%, due 2041 [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage limit on liens securing indebtedness | 10.00% |
LongTerm_Debt_Summary_of_Effec
Long-Term Debt - Summary of Effective Interest Rates on Variable-Rate IDRBs (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
2003 Series A, due 2038 [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rates | 0.85% | 1.43% |
2008 Series A, due 2038 [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rates | 0.90% | 1.41% |
2009 Series A, due 2039 [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rates | 0.89% | 1.01% |
Tax-exempt Series A, due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rates | 0.84% | 1.07% |
LongTerm_Debt_Estimated_Maturi
Long-Term Debt - Estimated Maturities of Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2015 | $19,192 |
2016 | 20,991 |
2017 | 43,899 |
2018 | 16,985 |
2019 | $304,328 |
ShortTerm_Debt_Additional_Info
Short-Term Debt - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Short-term Debt [Line Items] | ||
Working capital purposes | $150,000,000 | |
Short-term borrowings outstanding on the credit facility | 5,000,000 | 0 |
Effective interest rate on short-term borrowings | 1.13% | |
March 2019 [Member] | ||
Short-term Debt [Line Items] | ||
Current borrowing capacity | $300,000,000 | |
Short-term debt expiration date | 1-Mar-19 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Self-insured retention amount associated with general liability claims | $1 |
Additional self-insured retention amount of general liability | $4 |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefits - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
BasisPoint | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Maximum contribution of employer | 3.50% |
Deferment of annual cash compensation | 100.00% |
Matching contribution of employer | 3.50% |
Deferred compensation payments on retirement | 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. |
Additional Deferred Compensation Payment Options, period of payment, years | 5 years |
Deferred compensation, percentage of multiple interest rate | 150.00% |
Increments of changes to the discount rate, basis points | 25 |
Estimated increase in pension expense | $10 |
Future estimated funding amount | 39 |
Future estimated funding amount of retirement plan | $36 |
Maximum [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Per capita cost of covered health care benefits medical rate trend assumption | 6.00% |
Minimum [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Per capita cost of covered health care benefits medical rate trend assumption | 5.00% |
Pension_and_Other_Postretireme3
Pension and Other Postretirement Benefits - Cost of Retirement Plan (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
Employee Investment Plan cost | $4,816 | $4,850 | $4,707 |
Pension_and_Other_Postretireme4
Pension and Other Postretirement Benefits - Schedule of Allocation of Plan Assets (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Equity securities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Investment percentage range, minimum | 59.00% |
Investment percentage range, maximum | 71.00% |
Debt securities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Investment percentage range, minimum | 31.00% |
Investment percentage range, maximum | 37.00% |
Other [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Investment percentage range, maximum | 5.00% |
Pension_and_Other_Postretireme5
Pension and Other Postretirement Benefits - Schedule of Assumptions Used (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Discount rate | 4.25% | 5.00% |
Weighted-average rate of compensation increase | 2.75% | 3.25% |
Asset return assumption | 7.75% | 7.75% |
Pension_and_Other_Postretireme6
Pension and Other Postretirement Benefits - Schedule of Amounts Recognized in Balance Sheet and Income Statement (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net actuarial loss (gain) | $173,646 | ($100,345) | $74,853 |
Qualified Retirement Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Change in benefit obligations Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) | 886,714 | 902,812 | |
Service cost | 21,360 | 23,056 | 20,319 |
Interest cost | 43,440 | 37,607 | 38,266 |
Benefit obligation at end of year (PBO/PBO/APBO) | 1,060,240 | 886,714 | 902,812 |
Market value of plan assets, beginning balance | 719,944 | 609,750 | |
Actual return on plan assets | 34,732 | 96,187 | |
Employer contributions | 36,000 | 46,000 | |
Market value of plan assets, ending balance | 754,796 | 719,944 | 609,750 |
Funded status at year end | -305,444 | -166,770 | |
Qualified Retirement Plan [Member] | Change in benefit obligations [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net actuarial loss (gain) | 144,606 | -44,768 | |
Benefits paid | -35,880 | -31,993 | |
Qualified Retirement Plan [Member] | Change in plan assets [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Benefits paid | -35,880 | -31,993 | |
Qualified Retirement Plan [Member] | Benefit obligation [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Discount rate | 4.25% | 5.00% | |
Weighted-average rate of compensation increase | 2.75% | 3.25% | |
SERP [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Change in benefit obligations Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) | 36,143 | 37,373 | |
Service cost | 292 | 373 | 274 |
Interest cost | 1,745 | 1,535 | 1,629 |
Benefit obligation at end of year (PBO/PBO/APBO) | 41,176 | 36,143 | 37,373 |
Employer contributions | 2,463 | 2,477 | |
Funded status at year end | -41,176 | -36,143 | |
SERP [Member] | Change in benefit obligations [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net actuarial loss (gain) | 5,459 | -661 | |
Benefits paid | -2,463 | -2,477 | |
SERP [Member] | Change in plan assets [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Benefits paid | -2,463 | -2,477 | |
SERP [Member] | Benefit obligation [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Discount rate | 4.25% | 5.00% | |
Weighted-average rate of compensation increase | 2.75% | 3.25% | |
PBOP [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Change in benefit obligations Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) | 58,020 | 59,704 | |
Service cost | 1,101 | 1,220 | 977 |
Interest cost | 2,829 | 2,482 | 2,547 |
Plan amendments | 6,661 | ||
Benefit obligation at end of year (PBO/PBO/APBO) | 72,202 | 58,020 | 59,704 |
Market value of plan assets, beginning balance | 42,314 | 35,250 | |
Actual return on plan assets | 2,859 | 7,319 | |
Employer contributions | 169 | ||
Market value of plan assets, ending balance | 44,892 | 42,314 | 35,250 |
Funded status at year end | -27,310 | -15,706 | |
PBOP [Member] | Change in benefit obligations [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net actuarial loss (gain) | 4,567 | -4,073 | |
Benefits paid | -976 | -1,313 | |
PBOP [Member] | Change in plan assets [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Benefits paid | ($281) | ($424) | |
PBOP [Member] | Benefit obligation [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Discount rate | 4.25% | 5.00% |
Pension_and_Other_Postretireme7
Pension and Other Postretirement Benefits - Schedule of Accumulated Benefit Obligation (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Qualified Retirement Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Accumulated benefit obligation | $886,215 | $794,919 |
SERP [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Accumulated benefit obligation | $39,125 | $33,894 |
Pension_and_Other_Postretireme8
Pension and Other Postretirement Benefits - Schedule of Expected Benefit Payments (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2015 | $39.10 |
2016 | 41.3 |
2017 | 43.1 |
2018 | 45.3 |
2019 | 47.5 |
2020-2024 | 272.7 |
PBOP [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2015 | 3.3 |
2016 | 3.6 |
2017 | 3.8 |
2018 | 4 |
2019 | 4.1 |
2020-2024 | 20.4 |
SERP [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2015 | 2.6 |
2016 | 2.6 |
2017 | 2.6 |
2018 | 2.6 |
2019 | 2.6 |
2020-2024 | $13 |
Pension_and_Other_Postretireme9
Pension and Other Postretirement Benefits - Schedule of Net Periodic Benefit Cost and Weighted-Average Assumptions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net periodic benefit cost | $38,172 | $48,141 | $42,292 |
Discount rate | 4.25% | 5.00% | |
Expected return on plan assets | 7.75% | 7.75% | |
Weighted-average rate of compensation increase | 2.75% | 3.25% | |
Qualified Retirement Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Service cost | 21,360 | 23,056 | 20,319 |
Interest cost | 43,440 | 37,607 | 38,266 |
Expected return on plan assets | -53,342 | -49,840 | -45,780 |
Amortization of net actuarial loss | 22,873 | 32,261 | 23,883 |
Net periodic benefit cost | 34,331 | 43,084 | 36,688 |
Qualified Retirement Plan [Member] | Net benefit cost [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Discount rate | 5.00% | 4.25% | 5.00% |
Expected return on plan assets | 7.75% | 8.00% | 8.00% |
Weighted-average rate of compensation increase | 3.25% | 2.75% | 3.00% |
SERP [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Service cost | 292 | 373 | 274 |
Interest cost | 1,745 | 1,535 | 1,629 |
Amortization of net actuarial loss | 783 | 971 | 683 |
Net periodic benefit cost | 2,820 | 2,879 | 2,586 |
SERP [Member] | Net benefit cost [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Discount rate | 5.00% | 4.25% | 5.00% |
Expected return on plan assets | 7.75% | 8.00% | 8.00% |
Weighted-average rate of compensation increase | 3.25% | 2.75% | 3.00% |
PBOP [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Service cost | 1,101 | 1,220 | 977 |
Interest cost | 2,829 | 2,482 | 2,547 |
Expected return on plan assets | -3,264 | -2,824 | -2,404 |
Amortization of prior service cost | 355 | 355 | |
Amortization of transition obligation | 867 | ||
Amortization of net actuarial loss | 945 | 1,031 | |
Net periodic benefit cost | $1,021 | $2,178 | $3,018 |
PBOP [Member] | Net benefit cost [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Discount rate | 5.00% | 4.25% | 5.00% |
Expected return on plan assets | 7.75% | 8.00% | 8.00% |
Recovered_Sheet1
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 (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net actuarial loss (gain) | $173,646 | ($100,345) | $74,853 |
Amortization of prior service cost | -355 | -355 | |
Amortization of transition obligation | -867 | ||
Amortization of net actuarial loss | -23,656 | -34,177 | -25,597 |
Prior service cost | 6,661 | 2,423 | |
Regulatory adjustment | -140,308 | 123,630 | -42,771 |
Recognized in other comprehensive (income) loss | 15,988 | -11,247 | 8,041 |
Net periodic benefit costs recognized in net income | 38,172 | 48,141 | 42,292 |
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss | 54,160 | 36,894 | 50,333 |
Qualified Retirement Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net actuarial loss (gain) | 163,215 | -91,115 | 70,016 |
Amortization of net actuarial loss | -22,872 | -32,261 | -23,883 |
Regulatory adjustment | -129,031 | 113,762 | -41,520 |
Recognized in other comprehensive (income) loss | 11,312 | -9,614 | 4,613 |
Net periodic benefit costs recognized in net income | 34,331 | 43,084 | 36,688 |
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss | 45,643 | 33,470 | 41,301 |
SERP [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net actuarial loss (gain) | 5,460 | -662 | 4,111 |
Amortization of net actuarial loss | -784 | -971 | -683 |
Recognized in other comprehensive (income) loss | 4,676 | -1,633 | 3,428 |
Net periodic benefit costs recognized in net income | 2,820 | 2,879 | 2,586 |
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss | 7,496 | 1,246 | 6,014 |
PBOP [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net actuarial loss (gain) | 4,971 | -8,568 | 726 |
Amortization of prior service cost | -355 | -355 | |
Amortization of transition obligation | -867 | ||
Amortization of net actuarial loss | -945 | -1,031 | |
Prior service cost | 6,661 | 2,423 | |
Regulatory adjustment | -11,277 | 9,868 | -1,251 |
Net periodic benefit costs recognized in net income | 1,021 | 2,178 | 3,018 |
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss | $1,021 | $2,178 | $3,018 |
Recovered_Sheet2
Pension and Other Postretirement Benefits - Schedule of Fair Value of Plan Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets, including insurance contracts | $808,260 | $770,100 |
Assets at fair value [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 804,257 | 765,804 |
Insurance company general account contracts (Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Contract value of insurance contracts | 4,003 | 4,296 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 386,712 | 434,632 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Agriculture [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 6,859 | 8,468 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Capital equipment [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 2,288 | 4,006 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Chemicals/materials [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 5,388 | 8,472 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Consumer goods [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 42,969 | 55,940 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Energy and mining [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 19,051 | 37,197 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Finance/insurance [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 21,298 | 38,759 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Healthcare [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 38,968 | 41,625 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Information technology [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 26,648 | 25,367 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Services [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 29,701 | 32,138 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Telecommunications/internet/media [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 19,047 | 24,990 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Other [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 11,283 | 16,943 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Real estate investment trusts [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 5,882 | 5,950 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Mutual funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 110,726 | 99,259 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Government fixed Income securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 46,019 | 35,518 |
Level 1 - Quoted prices in active markets for identical financial assets [Member] | Preferred securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 585 | |
Level 2 - Significant other observable inputs [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 150,623 | 136,102 |
Level 2 - Significant other observable inputs [Member] | Other [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 23,806 | 20,231 |
Level 2 - Significant other observable inputs [Member] | Commercial paper [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,453 | |
Level 2 - Significant other observable inputs [Member] | Government fixed income and mortgage backed securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 49,745 | 50,760 |
Level 2 - Significant other observable inputs [Member] | Asset-backed and mortgage-backed [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 27,874 | 21,311 |
Level 2 - Significant other observable inputs [Member] | Banking [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 23,980 | 19,568 |
Level 2 - Significant other observable inputs [Member] | Insurance [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 6,365 | 6,673 |
Level 2 - Significant other observable inputs [Member] | Utilities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 4,358 | 5,434 |
Level 2 - Significant other observable inputs [Member] | Pooled funds and mutual funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 12,952 | 9,261 |
Level 2 - Significant other observable inputs [Member] | State and local obligations [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,543 | 1,411 |
Level 3 - Significant unobservable inputs [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 266,922 | 195,070 |
Level 3 - Significant unobservable inputs [Member] | Commingled equity funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 266,922 | 195,070 |
Qualified Retirement Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets, including insurance contracts | 763,108 | 727,525 |
Qualified Retirement Plan [Member] | Assets at fair value [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 759,105 | 723,229 |
Qualified Retirement Plan [Member] | Insurance company general account contracts (Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Contract value of insurance contracts | 4,003 | 4,296 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 354,197 | 402,478 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Agriculture [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 6,661 | 8,224 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Capital equipment [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 2,222 | 3,891 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Chemicals/materials [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 5,233 | 8,228 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Consumer goods [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 41,731 | 54,329 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Energy and mining [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 18,502 | 36,126 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Finance/insurance [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 20,685 | 37,643 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Healthcare [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 37,846 | 40,426 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Information technology [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 25,881 | 24,636 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Services [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 28,846 | 31,212 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Telecommunications/internet/media [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 18,498 | 24,270 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Other [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 10,958 | 16,455 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Real estate investment trusts [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 5,713 | 5,779 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Mutual funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 86,159 | 76,764 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Government fixed Income securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 44,694 | 34,495 |
Qualified Retirement Plan [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Preferred securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 568 | |
Qualified Retirement Plan [Member] | Level 2 - Significant other observable inputs [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 145,673 | 131,299 |
Qualified Retirement Plan [Member] | Level 2 - Significant other observable inputs [Member] | Other [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 23,120 | 19,649 |
Qualified Retirement Plan [Member] | Level 2 - Significant other observable inputs [Member] | Commercial paper [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,411 | |
Qualified Retirement Plan [Member] | Level 2 - Significant other observable inputs [Member] | Government fixed income and mortgage backed securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 48,312 | 49,298 |
Qualified Retirement Plan [Member] | Level 2 - Significant other observable inputs [Member] | Asset-backed and mortgage-backed [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 27,071 | 20,697 |
Qualified Retirement Plan [Member] | Level 2 - Significant other observable inputs [Member] | Banking [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 23,289 | 19,004 |
Qualified Retirement Plan [Member] | Level 2 - Significant other observable inputs [Member] | Insurance [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 6,182 | 6,481 |
Qualified Retirement Plan [Member] | Level 2 - Significant other observable inputs [Member] | Utilities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 4,232 | 5,278 |
Qualified Retirement Plan [Member] | Level 2 - Significant other observable inputs [Member] | Pooled funds and mutual funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 11,968 | 8,111 |
Qualified Retirement Plan [Member] | Level 2 - Significant other observable inputs [Member] | State and local obligations [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,499 | 1,370 |
Qualified Retirement Plan [Member] | Level 3 - Significant unobservable inputs [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 259,235 | 189,452 |
Qualified Retirement Plan [Member] | Level 3 - Significant unobservable inputs [Member] | Commingled equity funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 259,235 | 189,452 |
PBOP [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets, including insurance contracts | 45,152 | 42,575 |
PBOP [Member] | Assets at fair value [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 45,152 | 42,575 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 32,515 | 32,154 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Agriculture [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 198 | 244 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Capital equipment [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 66 | 115 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Chemicals/materials [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 155 | 244 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Consumer goods [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,238 | 1,611 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Energy and mining [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 549 | 1,071 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Finance/insurance [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 613 | 1,116 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Healthcare [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,122 | 1,199 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Information technology [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 767 | 731 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Services [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 855 | 926 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Telecommunications/internet/media [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 549 | 720 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Other [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 325 | 488 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Real estate investment trusts [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 169 | 171 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Mutual funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 24,567 | 22,495 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Government fixed Income securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,325 | 1,023 |
PBOP [Member] | Level 1 - Quoted prices in active markets for identical financial assets [Member] | Preferred securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 17 | |
PBOP [Member] | Level 2 - Significant other observable inputs [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 4,950 | 4,803 |
PBOP [Member] | Level 2 - Significant other observable inputs [Member] | Other [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 686 | 582 |
PBOP [Member] | Level 2 - Significant other observable inputs [Member] | Commercial paper [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 42 | |
PBOP [Member] | Level 2 - Significant other observable inputs [Member] | Government fixed income and mortgage backed securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 1,433 | 1,462 |
PBOP [Member] | Level 2 - Significant other observable inputs [Member] | Asset-backed and mortgage-backed [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 803 | 614 |
PBOP [Member] | Level 2 - Significant other observable inputs [Member] | Banking [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 691 | 564 |
PBOP [Member] | Level 2 - Significant other observable inputs [Member] | Insurance [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 183 | 192 |
PBOP [Member] | Level 2 - Significant other observable inputs [Member] | Utilities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 126 | 156 |
PBOP [Member] | Level 2 - Significant other observable inputs [Member] | Pooled funds and mutual funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 984 | 1,150 |
PBOP [Member] | Level 2 - Significant other observable inputs [Member] | State and local obligations [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 44 | 41 |
PBOP [Member] | Level 3 - Significant unobservable inputs [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 7,687 | 5,618 |
PBOP [Member] | Level 3 - Significant unobservable inputs [Member] | Commingled equity funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | $7,687 | $5,618 |
Recovered_Sheet3
Pension and Other Postretirement Benefits - Schedule of Fair Value of Plan Assets (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Amounts not included in funded status table | $8,572,000 | $7,842,000 |
Qualified Retirement Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Amounts not included in funded status table | 8,312,000 | 7,581,000 |
PBOP [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Amounts not included in funded status table | 260,000 | 261,000 |
Minimum [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Redemption notice period | 1 day | |
Impact fee on redemptions and subscriptions of $5 million or more | $5,000,000 | |
Maximum [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Redemption notice period | 30 days |
Recovered_Sheet4
Pension and Other Postretirement Benefits - Schedule of Effect of Significant Unobservable Inputs (Detail) (Commingled equity funds [Member], Level 3 - Significant unobservable inputs [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Beginning balance | $195,070 | $127,467 |
Actual return on plan assets, Relating to assets still held/Sold during the period | -6,932 | 21,903 |
Purchases | 82,615 | 45,700 |
Sales | -5,900 | |
Settlements | 0 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | 266,922 | 195,070 |
Realized [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Actual return on plan assets, Relating to assets still held/Sold during the period | $2,069 |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Stock-Based Plan Compensation Expense, Including Cash Award (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock-based compensation plan expense, net of related tax benefits | $8,130 | $8,012 | $7,396 |
Stock-based compensation plan related tax benefits | $4,983 | $4,910 | $4,533 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Options, maximum term, years | 10 years | ||
Weighted-average remaining contractual life of outstanding options, years | 1 year | ||
Cash received from exercise of stock options | $379,000 | ||
Tax benefit realized from exercise of stock options | 167,000 | ||
Percentage of restricted stock/units vested during first year | 0.4 | ||
Percentage of restricted stock/units vested during second and third years | 0.3 | ||
Average grant date fair value of performance shares and restricted stock/units granted | $44.83 | $41.34 | |
Total compensation cost related to nonvested performance shares and restricted stock/units not yet recognized | $2,900,000 |
StockBased_Compensation_Schedu1
Stock-Based Compensation - Schedule of Stock Options Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of options, Outstanding at the beginning of the year | 52 | 125 | 177 |
Number of options, Exercised during the year | -16 | -72 | -52 |
Number of options, Forfeited or expired during the year | -1 | ||
Number of options, Outstanding and exercisable at year end | 36 | 52 | 125 |
Weighted-average exercise price, Outstanding at the beginning of the year | $27.57 | $28.13 | $27.28 |
Weighted-average exercise price, Exercised during the year | $24.31 | $28.44 | $25.25 |
Weighted-average exercise price, Forfeited or expired during the year | $33.07 | ||
Weighted-average exercise price, Outstanding and exercisable at year end | $28.97 | $27.57 | $28.13 |
StockBased_Compensation_Schedu2
Stock-Based Compensation - Schedule of Aggregate Intrinsic Value of Outstanding and Exercisable Options (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Outstanding and exercisable | $1,194 | $1,473 | $1,788 |
Exercised | $451 | $1,402 | $928 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Market Prices of Common Stock (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Market value of Southwest Gas stock | $61.81 | $55.91 | $42.41 |
StockBased_Compensation_Schedu3
Stock-Based Compensation - Schedule of Stock Options Outstanding and Exercisable (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
$25.0 to $26.10 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, Lower limit | $25 |
Range of Exercise Price, Upper limit | $26.10 |
Number outstanding | 17 |
Weighted-remaining average contractual life, years | 6 months |
Weighted-average exercise price | $25.71 |
$29.08 to $33.07 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, Lower limit | $29.08 |
Range of Exercise Price, Upper limit | $33.07 |
Number outstanding | 19 |
Weighted-remaining average contractual life, years | 1 year 6 months |
Weighted-average exercise price | $31.83 |
StockBased_Compensation_Schedu4
Stock-Based Compensation - Schedule of Nonvested Performance and Restricted Stock Unit Plans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value, Granted | $44.83 | $41.34 | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested/unissued, Number of Units, at beginning of year | 323 | ||
Nonvested, Number of Units, Granted | 77 | ||
Nonvested, Number of Units, Dividends | 7 | ||
Nonvested, Number of Units, Forfeited or expired | 0 | ||
Nonvested, Number of Units, Vested and issued | -136 | ||
Nonvested/unissued, Number of Units, Ending balance | 271 | ||
Weighted-average grant date fair value, Beginning balance | $39.16 | ||
Weighted-average grant date fair value, Granted | $53.73 | ||
Weighted-average grant date fair value, Dividends | |||
Weighted-average grant date fair value, Forfeited or expired | $0 | ||
Weighted-average grant date fair value, Vested and issued | $36.23 | ||
Weighted-average grant date fair value, Ending balance | $43.71 | ||
Restricted Stock/Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested/unissued, Number of Units, at beginning of year | 245 | ||
Nonvested, Number of Units, Granted | 83 | ||
Nonvested, Number of Units, Dividends | 7 | ||
Nonvested, Number of Units, Forfeited or expired | 0 | ||
Nonvested, Number of Units, Vested and issued | -78 | ||
Nonvested/unissued, Number of Units, Ending balance | 257 | ||
Weighted-average grant date fair value, Beginning balance | $38 | ||
Weighted-average grant date fair value, Granted | $53.73 | ||
Weighted-average grant date fair value, Dividends | |||
Weighted-average grant date fair value, Forfeited or expired | $0 | ||
Weighted-average grant date fair value, Vested and issued | $40.87 | ||
Weighted-average grant date fair value, Ending balance | $41.22 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Before Taxes and Noncontrolling Interest for Domestic and Foreign Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax [Line Items] | |||
Total income before income taxes | $219,521 | $222,815 | $207,915 |
Foreign [Member] | |||
Income Tax [Line Items] | |||
Total income before income taxes | -1,950 | ||
United States [Member] | |||
Income Tax [Line Items] | |||
Total income before income taxes | $221,471 | $222,815 | $207,915 |
Income_Taxes_Summary_of_Income1
Income Taxes - Summary of Income Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $1,739 | $3,549 | $2,296 |
State | 5,073 | 5,107 | 5,744 |
Foreign | 2,193 | ||
Income tax expense (benefit), Current | 9,005 | 8,656 | 8,040 |
Deferred: | |||
Federal | 71,439 | 67,414 | 65,551 |
State | 614 | 1,872 | 1,685 |
Foreign | -2,685 | ||
Total deferred income tax expense | 69,368 | 69,286 | 67,236 |
Total income tax expense | $78,373 | $77,942 | $75,276 |
Income_Taxes_Significant_Compo
Income Taxes - Significant Components of Deferred Income Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred federal and state: | |||
Total deferred federal and state | $70,229 | $70,147 | $68,097 |
Deferred ITC, net | -861 | -861 | -861 |
Total deferred income tax expense | 69,368 | 69,286 | 67,236 |
Property-related items [Member] | |||
Deferred federal and state: | |||
Total deferred federal and state | 52,814 | 62,737 | 64,249 |
Purchased gas cost adjustments [Member] | |||
Deferred federal and state: | |||
Total deferred federal and state | 15,049 | 16,189 | 1,755 |
Employee benefits [Member] | |||
Deferred federal and state: | |||
Total deferred federal and state | 109 | -2,769 | 564 |
All other deferred [Member] | |||
Deferred federal and state: | |||
Total deferred federal and state | $2,257 | ($6,010) | $1,529 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of U.S Federal Statutory Rate to Consolidated Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Net state taxes | 1.90% | 2.40% | 2.60% |
Property-related items | 0.10% | 0.10% | 0.20% |
Tax credits | -0.50% | -0.40% | -0.40% |
Company owned life insurance | -1.00% | -2.10% | -1.30% |
All other differences | 0.20% | 0.10% | |
Consolidated effective income tax rate | 35.70% | 35.00% | 36.20% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Deferred income taxes for future amortization of ITC | $2,146 | $2,679 |
Employee benefits | 31,557 | 25,591 |
Alternative minimum tax credit | 20,172 | 19,739 |
Net operating losses and credits | 9,719 | 15,113 |
Interest rate swap | 8,622 | 9,893 |
Other | 25,872 | 22,334 |
Valuation allowance | -253 | -200 |
Deferred tax assets, total | 97,835 | 95,149 |
Deferred tax liabilities: | ||
Property-related items, including accelerated depreciation | 736,810 | 694,024 |
Regulatory balancing accounts | 33,736 | 18,688 |
Property-related items previously flowed through | 28 | 836 |
Unamortized ITC | 3,410 | 4,271 |
Debt-related costs | 5,066 | 4,713 |
Intangibles | 12,792 | |
Other | 27,572 | 15,898 |
Deferred tax liabilities, total | 819,414 | 738,430 |
Net deferred tax liabilities | 721,579 | 643,281 |
Current | -2,109 | -31,130 |
Noncurrent | 723,688 | 674,411 |
Net deferred tax liabilities | $721,579 | $643,281 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | |
Federal general business credit carryforward | $711,000 |
Federal net operating loss carryforward, expiration year | 2031 |
Federal general business credits, expiration year | 2031 |
Net operating loss carryforward expiration year | 2034 |
Undistributed foreign earnings | 0 |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 0 |
Significant increases or decreases in unrecognized tax benefit within the next 12 months | 0 |
Minimum [Member] | |
Income Tax Disclosure [Line Items] | |
Amount of benefit being recognized in financial statements upon ultimate settlement, Percentage | 50.00% |
Canada [Member] | |
Income Tax Disclosure [Line Items] | |
Federal net operating loss carryforward | 1,100,000 |
Canada [Member] | Tax Year 2011 [Member] | |
Income Tax Disclosure [Line Items] | |
Tax examination, year | 2011 |
Canada [Member] | Tax Year 2012 [Member] | |
Income Tax Disclosure [Line Items] | |
Tax examination, year | 2012 |
United States [Member] | |
Income Tax Disclosure [Line Items] | |
Federal net operating loss carryforward | 28,000,000 |
Federal net capital loss carryforward | $494,000 |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits at beginning of year | $0 | |
Gross increases-tax positions in prior period | 305 | |
Gross decreases-tax positions in prior period | 0 | 0 |
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 | $305 | $0 |
Income_Taxes_Summary_of_TaxRel
Income Taxes - Summary of Tax-Related Interest Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Tax-related interest income | $24 |
Derivatives_and_Fair_Value_Mea2
Derivatives and Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Derivative [Line Items] | |
Natural gas portfolios, maximum % rate | 25.00% |
Gain or loss (ineffective portion) recognized in income | $0 |
Senior Notes, 3.875%, Due 2022 [Member] | |
Derivative [Line Items] | |
Agreement settlement paid | $21,800,000 |
Minimum [Member] | |
Derivative [Line Items] | |
Maturities of natural gas swaps | 1-Jan-15 |
Maximum [Member] | |
Derivative [Line Items] | |
Maturities of natural gas swaps | 31-Mar-16 |
Derivatives_and_Fair_Value_Mea3
Derivatives and Fair Value Measurements - Notional Amounts under Swaps Contracts (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
MMBTU | MMBTU | |
Offsetting [Abstract] | ||
Contract notional amounts | 5,105,000 | 13,571,000 |
Derivatives_and_Fair_Value_Mea4
Derivatives and Fair Value Measurements - Amount of Gain or Losses Recognized in Income on Derivatives (Detail) (Cash flow hedging [Member], Net cost of gas sold [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain or (loss) recognized in income on derivative | ($2,363) | $976 | ($4,854) |
Regulatory deferral accounting treatment [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain or (loss) recognized in income on derivative | $2,363 | ($976) | $4,854 |
Derivatives_and_Fair_Values_Me
Derivatives and Fair Values Measurements - Gains (Losses) Recognized in Other Comprehensive Income for Derivatives as Cash Flow Hedging Instruments (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Amount of gain/(loss) realized/unrealized on FSIRS recognized in other comprehensive income on derivative | $2,959 |
Derivatives_and_Fair_Value_Mea5
Derivatives and Fair Value Measurements - Fair Values of Swaps in Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives not designated as hedging instruments | $1,444 | |
Liability derivatives not designated as hedging instruments | -5,425 | -623 |
Net total not designated as hedging instruments | -5,425 | 821 |
Swaps [Member] | Other current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives not designated as hedging instruments | 126 | |
Liability derivatives not designated as hedging instruments | -5,062 | -282 |
Net total not designated as hedging instruments | -5,062 | -156 |
Swaps [Member] | Other deferred credits [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives not designated as hedging instruments | 7 | |
Liability derivatives not designated as hedging instruments | -363 | -11 |
Net total not designated as hedging instruments | -363 | -4 |
Swaps [Member] | Deferred charges and other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives not designated as hedging instruments | 257 | |
Liability derivatives not designated as hedging instruments | -77 | |
Net total not designated as hedging instruments | 180 | |
Swaps [Member] | Prepaids and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives not designated as hedging instruments | 1,054 | |
Liability derivatives not designated as hedging instruments | -253 | |
Net total not designated as hedging instruments | $801 |
Derivatives_and_Fair_Value_Mea6
Derivatives and Fair Value Measurements - Paid to and Received from Counterparties for Settlements of Matured Swaps (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||
Paid to counterparties | $829 | $3,148 | $14,843 |
Received from counterparties | $4,713 | $915 | $634 |
Derivatives_and_Fair_Value_Mea7
Derivatives and Fair Value Measurements - Regulatory Assets/Liabilities Offsetting Derivatives at Fair Value in Consolidated Balance Sheets (Detail) (Swaps [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaids and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Total | $5,062 | $156 |
Deferred charges and other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Total | 363 | 4 |
Other deferred credits [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Total | -180 | |
Other current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Total | ($801) |
Derivatives_and_Fair_Value_Mea8
Derivatives and Fair Value Measurements - Significant Other Observable Inputs (Detail) (Level 2 - Significant other observable inputs [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Net Assets (Liabilities) | ($5,425) | $821 |
Swaps [Member] | Prepaids and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 801 | |
Swaps [Member] | Deferred charges and other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 180 | |
Swaps [Member] | Other current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | -5,062 | -156 |
Swaps [Member] | Other deferred credits [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | ($363) | ($4) |
Segment_Information_Accounts_R
Segment Information - Accounts Receivable for Services (Detail) (Centuri Construction Group [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Centuri Construction Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable for Centuri services | $9,169 | $10,787 |
Segment_Information_Schedule_o
Segment Information - Schedule of Revenues and Long-Lived Assets by Geographic Area (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||||||
Total Revenues | $627,683 | $432,475 | $453,153 | $608,396 | $538,357 | $387,346 | $411,574 | $613,505 | $488,566 | $371,799 | $409,768 | $657,645 | $2,121,707 | $1,950,782 | $1,927,778 |
Total Long-lived assets | 6,035,951 | 5,674,449 | 6,035,951 | 5,674,449 | |||||||||||
United States [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Revenues | 2,069,513 | 1,950,782 | |||||||||||||
Total Long-lived assets | 6,021,476 | 5,674,449 | 6,021,476 | 5,674,449 | |||||||||||
Canada [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Revenues | 52,194 | ||||||||||||||
Total Long-lived assets | $14,475 | $14,475 |
Segment_Information_Schedule_o1
Segment Information - Schedule of Segment Reporting Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||||||
Total operating revenues | $627,683 | $432,475 | $453,153 | $608,396 | $538,357 | $387,346 | $411,574 | $613,505 | $488,566 | $371,799 | $409,768 | $657,645 | $2,121,707 | $1,950,782 | $1,927,778 |
Interest revenue | 2,602 | 461 | 924 | ||||||||||||
Interest expense | 72,069 | 63,700 | 68,020 | ||||||||||||
Depreciation and amortization | 253,027 | 236,817 | 223,422 | ||||||||||||
Income tax expense | 78,373 | 77,942 | 75,276 | ||||||||||||
Segment net income | 58,746 | 1,970 | 9,627 | 70,783 | 57,303 | -2,864 | 10,108 | 80,773 | 62,393 | -4,305 | -3,676 | 78,919 | 141,126 | 145,320 | 133,331 |
Segment assets | 5,214,515 | 4,565,174 | 4,488,057 | 5,214,515 | 4,565,174 | 4,488,057 | |||||||||
Capital expenditures | 396,898 | 364,276 | 395,712 | ||||||||||||
Revenues from unaffiliated customers [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 2,029,519 | 1,862,629 | 1,844,404 | ||||||||||||
Intersegment sales [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 92,188 | 88,153 | 83,374 | ||||||||||||
Gas Operations [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total operating revenues | 1,382,087 | 1,300,154 | 1,321,728 | ||||||||||||
Interest revenue | 2,596 | 456 | 915 | ||||||||||||
Interest expense | 68,299 | 62,555 | 66,957 | ||||||||||||
Depreciation and amortization | 204,144 | 193,848 | 186,035 | ||||||||||||
Income tax expense | 63,597 | 65,377 | 64,973 | ||||||||||||
Segment net income | 116,872 | 124,169 | 116,619 | ||||||||||||
Segment assets | 4,657,709 | 4,272,029 | 4,204,948 | 4,657,709 | 4,272,029 | 4,204,948 | |||||||||
Capital expenditures | 350,025 | 314,578 | 308,951 | ||||||||||||
Gas Operations [Member] | Revenues from unaffiliated customers [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 1,382,087 | 1,300,154 | 1,321,728 | ||||||||||||
Construction Services [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total operating revenues | 739,620 | 650,628 | 606,050 | ||||||||||||
Interest revenue | 6 | 5 | 9 | ||||||||||||
Interest expense | 3,770 | 1,145 | 1,063 | ||||||||||||
Depreciation and amortization | 48,883 | 42,969 | 37,387 | ||||||||||||
Income tax expense | 14,776 | 12,565 | 10,303 | ||||||||||||
Segment net income | 24,254 | 21,151 | 16,712 | ||||||||||||
Segment assets | 567,405 | 293,811 | 283,109 | 567,405 | 293,811 | 283,109 | |||||||||
Capital expenditures | 46,873 | 49,698 | 86,761 | ||||||||||||
Construction Services [Member] | Revenues from unaffiliated customers [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 647,432 | 562,475 | 522,676 | ||||||||||||
Construction Services [Member] | Intersegment sales [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 92,188 | 88,153 | 83,374 | ||||||||||||
Adjustments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Segment assets | ($10,599) | ($666) | ($10,599) | ($666) |
Segment_Information_Schedule_o2
Segment Information - Schedule of Segment Reporting Information (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ||
Income tax payable netted | $666,000 | |
Gas Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Deferred income tax liability | 4,500,000 | |
Construction Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Income tax payable netted | 3,300,000 | |
Deferred income tax liability | 1,400,000 | |
Long-term deferred tax benefit | $1,400,000 |
Quarterly_Financial_Data_Sched
Quarterly Financial Data - Schedule of Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Operating revenues | $627,683 | $432,475 | $453,153 | $608,396 | $538,357 | $387,346 | $411,574 | $613,505 | $488,566 | $371,799 | $409,768 | $657,645 | $2,121,707 | $1,950,782 | $1,927,778 |
Operating income | 112,373 | 18,290 | 26,755 | 127,065 | 100,772 | 6,141 | 28,908 | 138,394 | 115,211 | 6,310 | 15,380 | 134,623 | 284,483 | 274,215 | 271,524 |
Net income (loss) | 58,897 | 1,927 | 9,627 | 70,697 | 57,189 | -3,057 | 10,067 | 80,674 | 62,106 | -4,414 | -3,888 | 78,835 | 141,148 | 144,873 | 132,639 |
Net income (loss) attributable to Southwest Gas Corporation | $58,746 | $1,970 | $9,627 | $70,783 | $57,303 | ($2,864) | $10,108 | $80,773 | $62,393 | ($4,305) | ($3,676) | $78,919 | $141,126 | $145,320 | $133,331 |
Basic earnings (loss) per common share | $1.26 | $0.04 | $0.21 | $1.52 | $1.24 | ($0.06) | $0.22 | $1.75 | $1.35 | ($0.09) | ($0.08) | $1.71 | $3.04 | $3.14 | $2.89 |
Diluted earnings (loss) per common share | $1.25 | $0.04 | $0.21 | $1.51 | $1.22 | ($0.06) | $0.22 | $1.73 | $1.34 | ($0.09) | ($0.08) | $1.70 | $3.01 | $3.11 | $2.86 |
Acquisition_of_Construction_Se2
Acquisition of Construction Services Businesses - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 01, 2014 | |
Business | Business | |||
Business Acquisition [Line Items] | ||||
Business acquisition, consideration | $221,000,000 | |||
Number of business acquisitions | 3 | 3 | ||
Goodwill | 143,160,000 | 17,810,000 | ||
Construction Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 133,000,000 | |||
Brigadier [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill assigned for deductible tax purpose | 4,900,000 | |||
Link-Line, W.S. Nicholls, and Brigadier [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 125,000,000 | 130,000,000 | ||
Intangible assets | 48,200,000 | |||
Foreign currency adjustments | 1,900,000 | |||
Accumulated amortization | 1,500,000 | |||
Incurred acquisition costs | 5,000,000 | |||
Link-Line, W.S. Nicholls, and Brigadier [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Indirect equity interest percentage | 100.00% | |||
Link-Line, W.S. Nicholls, and Brigadier [Member] | Non-Competition Agreements [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 500,000 | |||
Accumulated amortization | 40,000 | |||
Intangible assets useful life | 5 years | |||
Link-Line, W.S. Nicholls, and Brigadier [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 36,500,000 | |||
Accumulated amortization | 550,000 | |||
Link-Line, W.S. Nicholls, and Brigadier [Member] | Customer Relationships [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets useful life | 12 years | |||
Link-Line, W.S. Nicholls, and Brigadier [Member] | Customer Relationships [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets useful life | 21 years | |||
Link-Line, W.S. Nicholls, and Brigadier [Member] | Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 10,000,000 | |||
Accumulated amortization | 250,000 | |||
Link-Line, W.S. Nicholls, and Brigadier [Member] | Trade Names [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets useful life | 4 years | |||
Link-Line, W.S. Nicholls, and Brigadier [Member] | Trade Names [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets useful life | 20 years | |||
Link-Line, W.S. Nicholls, and Brigadier [Member] | Work Backlog [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 1,200,000 | |||
Accumulated amortization | $700,000 | |||
Intangible assets useful life | 8 months | |||
Centuri Construction Group [Member] | ||||
Business Acquisition [Line Items] | ||||
Indirect equity interest convertible for percentage of holding company equity interest | 96.60% | |||
Principal Previous Owners [Member] | Link-Line, W.S. Nicholls, and Brigadier [Member] | ||||
Business Acquisition [Line Items] | ||||
Indirect equity interest percentage | 10.00% | |||
Indirect equity interest dividend rights, percentage of cash dividend paid by Centuri to the Company | 3.40% | |||
Description of indirect equity interest | However, while the actual ownership interest was approximately 10% of Lynxus (Canadian operations), the terms of the underlying equity agreements include dividend participation rights equal to 3.4% of dividends declared at the level of Centuri. Additionally, these same agreements include, among other terms, the ability of the prior owners to exit their investment retained by requiring Centuri to purchase a portion of their interest (in Lynxus) commencing October 2016 and in incremental amounts each anniversary date thereafter. The shares subject to the election cumulate (if earlier elections are not made) such that 100% of their interest retained is subject to the election after September 2021. Furthermore, the equity agreements include an exchange feature such that the noncontrolling ownership interest retained by the parties, in the Canadian subsidiaries, may be convertible into shares equivalent to a 3.4% interest in Centuri (redeemable noncontrolling interest). In consideration of these circumstances and the underlying agreements, it was deemed appropriate to allocate earnings to the redeemable noncontrolling interest at an amount equivalent to approximately 3.4% of total Centuri earnings (rather than based on the actual current proportional ownership). Through this earnings allocation process, approximately 96.6% of Centuri earnings are attributable to the Company. | |||
Principal Previous Owners [Member] | Link-Line, W.S. Nicholls, and Brigadier [Member] | Construction Services [Member] | ||||
Business Acquisition [Line Items] | ||||
Indirect equity interest convertible for percentage of holding company equity interest | 3.40% | |||
Principal Previous Owners [Member] | Centuri Construction Group [Member] | ||||
Business Acquisition [Line Items] | ||||
Indirect equity interest percentage | 10.00% |
Acquisition_of_Construction_Se3
Acquisition of Construction Services Businesses - Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 01, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $143,160,000 | $17,810,000 | |
Link-Line, W.S. Nicholls, and Brigadier [Member] | |||
Business Acquisition [Line Items] | |||
Cash, cash equivalents, and restricted cash | 3,000,000 | ||
Contracts receivable and other receivables | 62,000,000 | ||
Property, plant and equipment | 17,000,000 | ||
Other assets | 17,000,000 | ||
Intangible assets | 52,000,000 | ||
Goodwill | 125,000,000 | 130,000,000 | |
Total assets acquired | 281,000,000 | ||
Current liabilities | 39,000,000 | ||
Deferred income tax-long-term | 17,000,000 | ||
Other long-term liabilities | 4,000,000 | ||
Net assets acquired | $221,000,000 |
Acquisition_of_Construction_Se4
Acquisition of Construction Services Businesses - Schedule of Estimated Future Amortization of Intangible Assets Acquired (Detail) (Link-Line, W.S. Nicholls, and Brigadier [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Link-Line, W.S. Nicholls, and Brigadier [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
2015 | $4,615 |
2016 | 3,371 |
2017 | 3,371 |
2018 | 3,123 |
2019 | $2,370 |
Acquisition_of_Construction_Se5
Acquisition of Construction Services Businesses - Schedule of Unaudited Pro Forma Consolidated Financial Information (Detail) (Link-Line, W.S. Nicholls, and Brigadier [Member], USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Link-Line, W.S. Nicholls, and Brigadier [Member] | ||
Business Acquisition [Line Items] | ||
Total operating revenues | $2,295,318 | $2,203,272 |
Net income attributable to Southwest Gas Corporation | $149,588 | $143,424 |
Basic earnings per share | $3.22 | $3.10 |
Diluted earnings per share | $3.19 | $3.07 |
Acquisition_of_Construction_Se6
Acquisition of Construction Services Businesses - Schedule of Actual Results Included In Consolidated Statements of Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||
Construction revenues | $739,620 | $650,628 | $606,050 | ||||||||||||
Net income attributable to Link-Line, W.S. Nicholls, and Brigadier | 58,746 | 1,970 | 9,627 | 70,783 | 57,303 | -2,864 | 10,108 | 80,773 | 62,393 | -4,305 | -3,676 | 78,919 | 141,126 | 145,320 | 133,331 |
Link-Line, W.S. Nicholls, and Brigadier [Member] | |||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||
Construction revenues | 54,264 | ||||||||||||||
Net income attributable to Link-Line, W.S. Nicholls, and Brigadier | $1,859 |
Construction_Services_Noncontr2
Construction Services Noncontrolling Interests - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2014 | |
Noncontrolling Interest [Line Items] | |||
Redeemable non-controlling interest, redemption value | $20,000 | 20,000 | |
Increase in redemption value of redeemable noncontrolling interest | $961,000 | ||
Intellichoice Energy, LLC [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 65.00% | 65.00% | |
Principal Previous Owners [Member] | Link-Line and WS Nicholls [Member] | |||
Noncontrolling Interest [Line Items] | |||
Indirect equity interest percentage | 10.00% | ||
Description of indirect equity interest | The agreement, associated with the approximate 10% indirect equity interest of the sellers, provides special dividend rights which entitle the sellers, as holders, to dividends equal to 3.4% of dividends paid at the level of Centuri. and Subject to certain conditions, such interests may become exchangeable for a 3.4% equity interest in Centuri. Additionally, the previous owners may exit their investment retained by requiring Centuri to purchase a portion of their interest (in Lynxus) commencing October 2016 and in incremental amounts each anniversary date thereafter. The shares subject to the election cumulate (if earlier elections are not made) such that 100% of their interest retained is subject to the election after September 2021. | ||
Indirect equity interest dividend rights, percentage of dividends paid by Centuri | 3.40% | ||
Noncontrolling interest purchase date | 2016-10 | ||
Principal Previous Owners [Member] | Link-Line and WS Nicholls [Member] | Construction Services [Member] | |||
Noncontrolling Interest [Line Items] | |||
Indirect equity interest exchangeable percentage in Centuri | 3.40% | ||
Principal Previous Owners [Member] | Link-Line and WS Nicholls [Member] | Maximum [Member] | |||
Noncontrolling Interest [Line Items] | |||
Indirect equity interest percentage | 100.00% | 100.00% |
Construction_Services_Noncontr3
Construction Services Noncontrolling Interests - Summary of Redeemable Noncontrolling Interest (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2014 | |
Redeemable Noncontrolling Interest [Line Items] | ||
Foreign currency exchange translation adjustment | ($637,000) | |
Adjustment to redemption value | 961,000 | |
Balance, December 31, 2014 | 20,042,000 | 20,042,000 |
Redeemable Noncontrolling Interest (Temporary Equity) [Member] | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable noncontrolling interest related to acquisition | 18,952,000 | |
Net Income (loss) attributable to redeemable noncontrolling interest | 151,000 | |
Foreign currency exchange translation adjustment | -22,000 | |
Adjustment to redemption value | 961,000 | |
Balance, December 31, 2014 | $20,042,000 | $20,042,000 |