Equity, Other Comprehensive Income, and Accumulated Other Comprehensive Income | Note 7 – Equity, Other Comprehensive Income, and Accumulated Other Comprehensive Income The table below provides details of activity in equity and the redeemable noncontrolling interest during the six months ended June 30, 2015. Southwest Gas Corporation Equity Accumulated Redeemable Additional Other Non- Noncontrolling Common Stock Paid-in Comprehensive Retained controlling Interest (In thousands, except per share amounts) Shares Amount Capital Income (Loss) Earnings Interest Total (Temporary Equity) DECEMBER 31, 2014 46,523 $ 48,153 $ 851,381 $ (50,175 ) $ 639,164 $ (2,257 ) $ 1,486,266 $ 20,042 Common stock issuances 519 519 22,241 22,760 Net income (loss) 76,932 58 76,990 (48 ) Redemption value adjustments 658 658 (658 ) Foreign currency exchange translation adj. (1,028 ) (1,028 ) (35 ) Other comprehensive income (loss): Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax 1,416 1,416 Amounts reclassified to net income,net of tax (FSIRS) 1,037 1,037 Dividends declared Common: $0.81 per share (38,466 ) (38,466 ) JUNE 30, 2015 47,042 $ 48,672 $ 873,622 $ (48,750 ) $ 678,288 $ (2,199 ) $ 1,549,633 $ 19,301 The following information provides insight into amounts impacting Other Comprehensive Income (Loss), both before and after-tax, within the Condensed Consolidated Statements of Comprehensive Income, which also impact Accumulated Other Comprehensive Income in the Company’s Condensed Consolidated Balance Sheets and the associated column in the equity table above. See Note 4 – Derivatives and Fair Value Measurements Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) (Thousands of dollars) Three Months Ended Three Months Ended June 30, 2015 June 30, 2014 Before- Tax Net-of- Before- Tax Net-of- Tax (Expense) Tax Tax (Expense) Tax Amount or Benefit (1) Amount Amount or Benefit (1) Amount Defined benefit pension plans: Amortization of prior service cost $ 334 $ (126 ) $ 208 $ 88 $ (33 ) $ 55 Amortization of net actuarial (gain)/loss 8,595 (3,267 ) 5,328 5,914 (2,248 ) 3,666 Regulatory adjustment (7,787 ) 2,959 (4,828 ) (5,177 ) 1,967 (3,210 ) Pension plans other comprehensive income (loss) 1,142 (434 ) 708 825 (314 ) 511 FSIRS (designated hedging activities): Amounts reclassifed into net income 836 (318 ) 518 837 (318 ) 519 FSIRS other comprehensive income 836 (318 ) 518 837 (318 ) 519 Foreign currency translation adjustments: Translation adjustments 209 — 209 — — — Foreign currency other comprehensive income (loss) 209 — 209 — — — Total other comprehensive income (loss) $ 2,187 $ (752 ) $ 1,435 $ 1,662 $ (632 ) $ 1,030 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Before- Tax Net-of- Before- Tax Net-of- Defined benefit pension plans: Amortization of prior service cost $ 667 $ (253 ) $ 414 $ 177 $ (67 ) $ 110 Amortization of net actuarial (gain)/loss 17,191 (6,533 ) 10,658 11,828 (4,495 ) 7,333 Regulatory adjustment (15,574 ) 5,918 (9,656 ) (10,355 ) 3,935 (6,420 ) Pension plans other comprehensive income (loss) 2,284 (868 ) 1,416 1, 650 (627 ) 1,023 FSIRS (designated hedging activities): Amounts reclassifed into net income 1,672 (635 ) 1,037 1,673 (636 ) 1,037 FSIRS other comprehensive income 1,672 (635 ) 1,037 1,673 (636 ) 1,037 Foreign currency translation adjustments: Translation adjustments (1,063 ) — (1,063 ) — — — Foreign currency other comprehensive income (loss) (1,063 ) — (1,063 ) — — — Total other comprehensive income (loss) $ 2,893 $ (1,503 ) $ 1,390 $ 3,323 $ (1,263 ) $ 2,060 Twelve Months Ended June 30, 2015 Twelve Months Ended June 30, 2014 Before- Tax Net-of- Before- Tax Net-of- Tax (Expense) Tax Tax (Expense) Tax Amount or Benefit (1) Amount Amount or Benefit (1) Amount Defined benefit pension plans: Net actuarial gain/(loss) $ (173,646 ) $ 65,985 $ (107,661 ) $ 100,345 $ (38,131 ) $ 62,214 Amortization of prior service cost 845 (321 ) 524 355 (134 ) 221 Amortization of net actuarial (gain)/loss 29,019 (11,027 ) 17,992 28,915 (10,988 ) 17,927 Prior service cost (6,661 ) 2,531 (4,130 ) — — — Regulatory adjustment 135,089 (51,334 ) 83,755 (118,817 ) 45,150 (73,667 ) Pension plans other comprehensive income (loss) (15,354 ) 5,834 (9,520 ) 10,798 (4,103 ) 6,695 FSIRS (designated hedging activities): Amounts reclassifed into net income 3,344 (1,271 ) 2,073 3,345 (1,271 ) 2,074 FSIRS other comprehensive income (loss) 3,344 (1,271 ) 2,073 3,345 (1,271 ) 2,074 Foreign currency translation adjustments: Translation adjustments (1,722 ) — (1,722 ) — — — Foreign currency other comprehensive income (loss) (1,722 ) — (1,722 ) — — — Total other comprehensive income (loss) $ (13,732 ) $ 4,563 $ (9,169 ) $ 14,143 $ (5,374 ) $ 8,769 (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. Approximately $2.1 million of realized losses (net of tax) related to the FSIRS, reported in Accumulated other comprehensive income (“AOCI”) at June 30, 2015, will be reclassified into interest expense within the next 12 months, as the related interest payments on long-term debt occur. The following table represents a rollforward of AOCI, presented on the Company’s Condensed Consolidated Balance Sheets: AOCI - Rollforward (Thousands of dollars) Defined Benefit Plans FSIRS Foreign Currency Items Before- Tax Tax After- Tax Before- Tax Tax After- Tax Before- Tax Tax After- Tax AOCI Beginning Balance AOCI December 31, 2014 $ (57,211 ) $ 21,740 $ (35,471 ) $ (22,688 ) $ 8,621 $ (14,067 ) $ (637 ) $ — $ (637 ) $ (50,175 ) Translation adjustments — — — — — — (1,063 ) — (1,063 ) (1,063 ) Other comprehensive income before reclassifications — — — — — — (1,063 ) — (1,063 ) (1,063 ) FSIRS amounts reclassified from AOCI (1) — — — 1,672 (635 ) 1,037 — — — 1,037 Amortization of prior service cost (2) 667 (253 ) 414 — — — — — — 414 Amortization of net actuarial loss (2) 17,191 (6,533 ) 10,658 — — — — — — 10,658 Regulatory adjustment (3) (15,574 ) 5,918 (9,656 ) — — — — — — (9,656 ) Net current period other comprehensive income (loss) 2,284 (868 ) 1,416 1,672 (635 ) 1,037 (1,063 ) — (1,063 ) 1,390 Less: Translation adjustment attributable to redeemable noncontrolling interest — — — — — — (35 ) — (35 ) (35 ) Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation 2,284 (868 ) 1,416 1,672 (635 ) 1,037 (1,028 ) — (1,028 ) 1,425 Ending Balance AOCI June 30, 2015 $ (54,927 ) $ 20,872 $ (34,055 ) $ (21,016 ) $ 7,986 $ (13,030 ) $ (1,665 ) $ — $ (1,665 ) $ (48,750 ) (1) The FSIRS reclassification amounts are included in the Net interest deductions line item on the Condensed Consolidated Statements of Income. (2) These AOCI components are included in the computation of net periodic benefit cost (see Note 2 – Components of Net Periodic Benefit Cost (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 Condensed Consolidated Balance Sheets). The following table represents amounts (before income tax impacts) associated with defined benefit plans and included in AOCI (in the table above), that have not yet been recognized in net periodic benefit cost: Amounts Recognized in AOCI (Before Tax) (Thousands of dollars) June 30, 2015 December 31, 2014 Net actuarial (loss) gain $ (421,940 ) $ (439,131 ) Prior service cost (7,706 ) (8,373 ) Less: amount recognized in regulatory assets 374,719 390,293 Recognized in AOCI $ (54,927 ) $ (57,211 ) |