Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 15, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37976 | ||
Entity Registrant Name | Southwest Gas Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 81-3881866 | ||
Entity Address, Address Line One | 8360 S. Durango Dr. | ||
Entity Address, Address Line Two | Post Office Box 98510 | ||
Entity Address, City or Town | Las Vegas, | ||
Entity Address, State or Province | NV | ||
Entity Address, Postal Zip Code | 89193-8510 | ||
City Area Code | (702) | ||
Local Phone Number | 876-7237 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,549,286,493 | ||
Entity Common Stock, Shares Outstanding | 71,595,491 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Description Part Into Which Incorporated 2024 Proxy Statement Part III | ||
Entity Central Index Key | 0001692115 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Common stock shares | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Southwest Gas Holdings, Inc. Common Stock, $1 par value | ||
Trading Symbol | SWX | ||
Security Exchange Name | NYSE | ||
Preferred Stock Purchase Rights | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock Purchase Rights | ||
Security Exchange Name | NYSE | ||
No Trading Symbol Flag | true | ||
Southwest Gas Corporation | |||
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-7850 | ||
Entity Registrant Name | Southwest Gas Corporation | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Tax Identification Number | 88-0085720 | ||
Entity Address, Address Line One | 8360 S. Durango Dr. | ||
Entity Address, Address Line Two | Post Office Box 98510 | ||
Entity Address, City or Town | Las Vegas, | ||
Entity Address, State or Province | NV | ||
Entity Address, Postal Zip Code | 89193-8510 | ||
City Area Code | (702) | ||
Local Phone Number | 876-7237 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Description Part Into Which Incorporated 2024 Proxy Statement Part III | ||
Entity Central Index Key | 0000092416 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Financial Statement Error Correction [Flag] | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor [Line Items] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Las Vegas, Nevada |
Auditor Firm ID | 238 |
Southwest Gas Corporation | |
Auditor [Line Items] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Las Vegas, Nevada |
Auditor Firm ID | 238 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Regulated operations plant: | ||
Gas plant | $ 10,140,362 | $ 9,453,907 |
Less: accumulated depreciation | (2,822,669) | (2,674,157) |
Construction work in progress | 200,549 | 244,750 |
Net regulated operations plant | 7,518,242 | 7,024,500 |
Other property and investments, net | 1,266,340 | 1,281,172 |
Current assets: | ||
Cash and cash equivalents | 106,536 | 123,078 |
Accounts receivable, net of allowances | 886,549 | 866,246 |
Accrued utility revenue | 93,000 | 88,100 |
Income taxes receivable, net | 1,935 | 8,738 |
Deferred purchased gas costs | 552,885 | 450,120 |
Prepaid and other current assets | 218,832 | 433,850 |
Current assets held for sale | 21,377 | 1,737,530 |
Total current assets | 1,881,114 | 3,707,662 |
Noncurrent assets: | ||
Goodwill | 789,729 | 787,250 |
Deferred income taxes | 463 | 82 |
Deferred charges and other assets | 414,008 | 395,948 |
Total noncurrent assets | 1,204,200 | 1,183,280 |
Total assets | 11,869,896 | 13,196,614 |
Capitalization: | ||
Common stock, $1 par (authorized – 120,000,000 shares; issued and outstanding – 71,563,750 and 67,119,143 shares) | 73,194 | 68,749 |
Additional paid-in capital | 2,541,790 | 2,287,183 |
Accumulated other comprehensive loss, net | (43,787) | (44,242) |
Retained earnings | 738,839 | 747,069 |
Total Southwest Gas Holdings, Inc. equity | 3,310,036 | 3,058,759 |
Redeemable noncontrolling interests | 104,667 | 159,349 |
Long-term debt, less current maturities | 4,609,838 | 4,403,299 |
Total capitalization | 8,024,541 | 7,621,407 |
Commitments and contingencies (Note 10) | ||
Current liabilities: | ||
Current maturities of long-term debt | 42,552 | 44,557 |
Short-term debt | 628,500 | 1,542,806 |
Accounts payable | 346,907 | 662,090 |
Customer deposits | 48,460 | 51,182 |
Income taxes payable, net | 817 | 2,690 |
Accrued general taxes | 58,053 | 67,094 |
Accrued interest | 36,605 | 38,556 |
Other current liabilities | 522,953 | 369,743 |
Current liabilities held for sale | 0 | 644,245 |
Total current liabilities | 1,684,847 | 3,422,963 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits, net | 752,997 | 682,067 |
Accumulated removal costs | 458,000 | 445,000 |
Other deferred credits and other long-term liabilities | 949,511 | 1,025,177 |
Total deferred income taxes and other credits | 2,160,508 | 2,152,244 |
Total capitalization and liabilities | $ 11,869,896 | $ 13,196,614 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par (in USD per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, issued (in shares) | 71,563,750 | 67,119,143 |
Common stock, outstanding (in shares) | 71,563,750 | 67,119,143 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating revenues: | |||
Regulated operations revenues | $ 2,534,696 | $ 2,199,682 | $ 1,521,790 |
Utility infrastructure services revenues | 2,899,276 | 2,760,327 | 2,158,661 |
Total operating revenues | 5,433,972 | 4,960,009 | 3,680,451 |
Operating expenses: | |||
Net cost of gas sold | 1,253,269 | 799,060 | 430,907 |
Operations and maintenance | 544,082 | 636,766 | 473,146 |
Depreciation and amortization | 440,908 | 470,455 | 371,041 |
Taxes other than income taxes | 88,751 | 93,383 | 80,343 |
Utility infrastructure services expenses | 2,617,402 | 2,529,318 | 1,955,467 |
Goodwill impairment and loss on sale | 71,230 | 455,425 | 0 |
Total operating expenses | 5,015,642 | 4,984,407 | 3,310,904 |
Operating income (loss) | 418,330 | (24,398) | 369,547 |
Other income and (expenses): | |||
Net interest deductions | (292,286) | (242,750) | (119,198) |
Other income (deductions) | 71,305 | (6,189) | (3,499) |
Total other income and (expenses) | (220,981) | (248,939) | (122,697) |
Income (loss) before income taxes | 197,349 | (273,337) | 246,850 |
Income tax expense (benefit) | 41,832 | (75,653) | 39,648 |
Net income (loss) | 155,517 | (197,684) | 207,202 |
Net income attributable to noncontrolling interests | 4,628 | 5,606 | 6,423 |
Net income (loss) attributable to Southwest Gas Holdings, Inc. | $ 150,889 | $ (203,290) | $ 200,779 |
Earnings (loss) per share: | |||
Basic (in USD per share) | $ 2.13 | $ (3.10) | $ 3.39 |
Diluted (in USD per share) | $ 2.13 | $ (3.10) | $ 3.39 |
Weighted average shares: | |||
Basic (in shares) | 70,787 | 65,558 | 59,145 |
Diluted (in shares) | 70,990 | 65,558 | 59,259 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 155,517 | $ (197,684) | $ 207,202 |
Defined benefit pension plans: | |||
Net actuarial gain (loss) | (2,423) | 3,099 | 44,974 |
Amortization of prior service cost | 133 | 133 | 729 |
Amortization of net actuarial loss | 1,014 | 26,461 | 33,894 |
Regulatory adjustment | (1,011) | (21,457) | (67,027) |
Net defined benefit pension plans | (2,287) | 8,236 | 12,570 |
Forward-starting interest rate swaps (“FSIRS”): | |||
Amounts reclassified into net income | 0 | 416 | 1,652 |
Net forward-starting interest rate swaps | 0 | 416 | 1,652 |
Foreign currency translation adjustments | 2,742 | (6,133) | 20 |
Total other comprehensive income (loss), net of tax | 455 | 2,519 | 14,242 |
Comprehensive income (loss) | 155,972 | (195,165) | 221,444 |
Comprehensive income attributable to noncontrolling interests | 4,628 | 5,606 | 6,423 |
Comprehensive income (loss) attributable to Southwest Gas Holdings, Inc. | $ 151,344 | $ (200,771) | $ 215,021 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOW FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 155,517 | $ (197,684) | $ 207,202 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 440,908 | 470,455 | 371,041 |
Impairment of assets and other charges | 71,230 | 455,425 | 0 |
Deferred income taxes | 56,771 | (72,048) | 61,212 |
Gains on sale of property and equipment | (4,683) | (7,865) | (6,906) |
Changes in undistributed stock compensation | 8,079 | 9,446 | 9,294 |
Equity AFUDC | (1,951) | (465) | 0 |
Changes in current assets and liabilities: | |||
Accounts receivable, net of allowances | (22,583) | (193,775) | (51,554) |
Accrued utility revenue | (4,900) | (3,200) | (2,500) |
Deferred purchased gas costs | (117,770) | (147,215) | (343,728) |
Accounts payable | (286,161) | 293,909 | 50,426 |
Accrued taxes | (2,302) | 17,929 | (6,725) |
Other current assets and liabilities | 304,110 | (207,853) | (89,209) |
Changes in deferred charges and other assets | (10,444) | 16,886 | (13,541) |
Changes in other liabilities and deferred credits | (76,610) | (26,485) | (73,629) |
Net cash provided by operating activities | 509,211 | 407,460 | 111,383 |
CASH FLOW FROM INVESTING ACTIVITIES: | |||
Construction expenditures and property additions | (872,521) | (859,421) | (715,626) |
Acquisition of businesses, net of cash acquired | 0 | (18,809) | (2,354,260) |
Proceeds from the sale of business, net of cash sold | 1,022,483 | 0 | 0 |
Changes in customer advances | (8,905) | 21,506 | 15,974 |
Other | 9,909 | 17,822 | 18,256 |
Net cash provided by (used in) investing activities | 150,966 | (838,902) | (3,035,656) |
CASH FLOW FROM FINANCING ACTIVITIES: | |||
Issuance of common stock, net | 251,759 | 461,828 | 213,641 |
Centuri distribution to redeemable noncontrolling interest | (39,894) | (39,649) | 0 |
Dividends paid | (174,574) | (160,563) | (138,222) |
Issuance of long-term debt, net | 1,044,861 | 1,067,805 | 1,660,696 |
Retirement of long-term debt | (248,328) | (499,914) | (452,664) |
Change in long-term credit facility and commercial paper | (50,000) | (80,000) | (20,000) |
Issuance of short-term debt | 450,000 | 0 | 1,850,000 |
Other changes in short-term debt | (1,916,748) | (366,193) | (48,000) |
Withholding remittance – share-based compensation | (1,990) | (2,662) | (1,264) |
Other, including principal payments on finance leases | (15,881) | (24,172) | (729) |
Net cash provided by (used in) financing activities | (700,795) | 356,480 | 3,063,458 |
Effects of currency translation on cash and cash equivalents | 273 | (854) | 160 |
Change in cash and cash equivalents | (40,345) | (75,816) | |
Change in cash and cash equivalents included in current assets held for sale | 23,803 | (23,803) | |
Change in cash and cash equivalents | 139,345 | ||
Cash and cash equivalents at beginning of period | 123,078 | 222,697 | 83,352 |
Cash and cash equivalents at end of period | 106,536 | 123,078 | 222,697 |
SUPPLEMENTAL INFORMATION: | |||
Interest paid, net of amounts capitalized | 282,626 | 219,825 | 104,352 |
Income taxes paid, net | $ 9,365 | $ 12,001 | $ 4,208 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common stock shares | Additional paid-in capital | Accumulated other comprehensive loss | Retained earnings | Southwest Gas Holdings, Inc. |
Beginning balance (in shares) at Dec. 31, 2020 | 57,193,000 | |||||
Beginning balance at Dec. 31, 2020 | $ 58,823 | $ 1,609,155 | $ (61,003) | $ 1,067,978 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issuances (in shares) | 3,229,000 | |||||
Common stock issuances | $ 3,229 | 219,298 | ||||
Promissory notes in association with redeemable noncontrolling interest | (4,237) | |||||
Foreign currency exchange translation adjustment | 20 | |||||
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax | 12,570 | |||||
FSIRS amounts reclassified to net income, net of tax | $ 1,652 | 1,652 | ||||
Net income (loss) | 200,779 | |||||
Redemption value adjustments | (12,016) | |||||
Dividends declared | (142,428) | |||||
Ending balance (in shares) at Dec. 31, 2021 | 60,422,000 | |||||
Ending balance at Dec. 31, 2021 | $ 62,052 | 1,824,216 | (46,761) | 1,114,313 | $ 2,953,820 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per common share (in USD per share) | $ 2.38 | |||||
Common stock issuances (in shares) | 6,697,000 | |||||
Common stock issuances | $ 6,697 | 462,967 | ||||
Promissory notes in association with redeemable noncontrolling interest | 0 | |||||
Foreign currency exchange translation adjustment | (6,133) | |||||
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax | 8,236 | |||||
FSIRS amounts reclassified to net income, net of tax | $ 416 | 416 | ||||
Net income (loss) | (203,290) | |||||
Redemption value adjustments | $ (3,325) | 3,325 | ||||
Dividends declared | (167,279) | |||||
Ending balance (in shares) at Dec. 31, 2022 | 67,119,143 | 67,119,000 | ||||
Ending balance at Dec. 31, 2022 | $ 68,749 | 2,287,183 | (44,242) | 747,069 | 3,058,759 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per common share (in USD per share) | $ 2.48 | |||||
Common stock issuances (in shares) | 4,445,000 | |||||
Common stock issuances | $ 4,445 | 254,557 | ||||
Promissory notes in association with redeemable noncontrolling interest | 50 | |||||
Foreign currency exchange translation adjustment | 2,742 | |||||
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax | (2,287) | |||||
FSIRS amounts reclassified to net income, net of tax | $ 0 | 0 | ||||
Net income (loss) | 150,889 | |||||
Redemption value adjustments | $ (19,366) | 19,366 | ||||
Dividends declared | (178,485) | |||||
Ending balance (in shares) at Dec. 31, 2023 | 71,563,750 | 71,564,000 | ||||
Ending balance at Dec. 31, 2023 | $ 73,194 | $ 2,541,790 | $ (43,787) | $ 738,839 | $ 3,310,036 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per common share (in USD per share) | $ 2.48 |
CONSOLIDATED BALANCE SHEETS - S
CONSOLIDATED BALANCE SHEETS - Southwest - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Regulated operations plant: | ||
Gas plant | $ 10,140,362 | $ 9,453,907 |
Less: accumulated depreciation | (2,822,669) | (2,674,157) |
Construction work in progress | 200,549 | 244,750 |
Net regulated operations plant | 7,518,242 | 7,024,500 |
Other property and investments, net | 1,266,340 | 1,281,172 |
Current assets: | ||
Cash and cash equivalents | 106,536 | 123,078 |
Accounts receivable, net of allowances | 886,549 | 866,246 |
Accrued utility revenue | 93,000 | 88,100 |
Income taxes receivable, net | 1,935 | 8,738 |
Deferred purchased gas costs | 552,885 | 450,120 |
Prepaid and other current assets | 218,832 | 433,850 |
Current assets held for sale | 21,377 | 1,737,530 |
Total current assets | 1,881,114 | 3,707,662 |
Noncurrent assets: | ||
Goodwill | 789,729 | 787,250 |
Deferred charges and other assets | 414,008 | 395,948 |
Total noncurrent assets | 1,204,200 | 1,183,280 |
Total assets | 11,869,896 | 13,196,614 |
Capitalization: | ||
Common stock | 73,194 | 68,749 |
Additional paid-in capital | 2,541,790 | 2,287,183 |
Accumulated other comprehensive loss, net | (43,787) | (44,242) |
Retained earnings | 738,839 | 747,069 |
Total Southwest Gas Holdings, Inc. equity | 3,310,036 | 3,058,759 |
Long-term debt, less current maturities | 4,609,838 | 4,403,299 |
Total capitalization | 8,024,541 | 7,621,407 |
Commitments and contingencies (Note 10) | ||
Current liabilities: | ||
Short-term debt | 628,500 | 1,542,806 |
Accounts payable | 346,907 | 662,090 |
Customer deposits | 48,460 | 51,182 |
Accrued general taxes | 58,053 | 67,094 |
Accrued interest | 36,605 | 38,556 |
Other current liabilities | 522,953 | 369,743 |
Total current liabilities | 1,684,847 | 3,422,963 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits, net | 752,997 | 682,067 |
Accumulated removal costs | 458,000 | 445,000 |
Other deferred credits and other long-term liabilities | 949,511 | 1,025,177 |
Total deferred income taxes and other credits | 2,160,508 | 2,152,244 |
Total capitalization and liabilities | 11,869,896 | 13,196,614 |
Southwest Gas Corporation | ||
Regulated operations plant: | ||
Gas plant | 10,140,362 | 9,453,907 |
Less: accumulated depreciation | (2,822,669) | (2,674,157) |
Construction work in progress | 200,549 | 244,750 |
Net regulated operations plant | 7,518,242 | 7,024,500 |
Other property and investments, net | 152,658 | 169,397 |
Current assets: | ||
Cash and cash equivalents | 71,154 | 51,823 |
Accrued utility revenue | 93,000 | 88,100 |
Income taxes receivable, net | 26 | 103 |
Deferred purchased gas costs | 552,885 | 450,120 |
Prepaid and other current assets | 188,138 | 401,789 |
Current assets held for sale | 21,376 | 0 |
Total current assets | 1,195,774 | 1,228,146 |
Noncurrent assets: | ||
Goodwill | 11,155 | 11,155 |
Deferred charges and other assets | 390,742 | 370,483 |
Total noncurrent assets | 401,897 | 381,638 |
Total assets | 9,268,571 | 8,803,681 |
Capitalization: | ||
Common stock | 49,112 | 49,112 |
Additional paid-in capital | 2,156,577 | 1,622,969 |
Accumulated other comprehensive loss, net | (40,548) | (38,261) |
Retained earnings | 1,018,474 | 935,355 |
Total Southwest Gas Holdings, Inc. equity | 3,183,615 | 2,569,175 |
Long-term debt, less current maturities | 3,501,543 | 3,251,296 |
Total capitalization | 6,685,158 | 5,820,471 |
Commitments and contingencies (Note 10) | ||
Current liabilities: | ||
Short-term debt | 0 | 225,000 |
Customer deposits | 48,460 | 51,182 |
Accrued general taxes | 58,053 | 67,094 |
Accrued interest | 34,955 | 29,569 |
Other current liabilities | 271,899 | 150,817 |
Total current liabilities | 630,822 | 1,020,708 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits, net | 749,836 | 683,948 |
Accumulated removal costs | 458,000 | 445,000 |
Other deferred credits and other long-term liabilities | 744,755 | 833,554 |
Total deferred income taxes and other credits | 1,952,591 | 1,962,502 |
Total capitalization and liabilities | 9,268,571 | 8,803,681 |
Southwest Gas Corporation | Nonrelated Party | ||
Current assets: | ||
Accounts receivable, net of allowances | 269,195 | 234,081 |
Current liabilities: | ||
Accounts payable | 215,744 | 497,046 |
Southwest Gas Corporation | Related Party | ||
Current assets: | ||
Accounts receivable, net of allowances | 0 | 2,130 |
Current liabilities: | ||
Accounts payable | $ 1,711 | $ 0 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME - Southwest - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Regulated operations revenues | $ 5,433,972 | $ 4,960,009 | $ 3,680,451 |
Operating expenses: | |||
Net cost of gas sold | 1,253,269 | 799,060 | 430,907 |
Operations and maintenance | 544,082 | 636,766 | 473,146 |
Depreciation and amortization | 440,908 | 470,455 | 371,041 |
Taxes other than income taxes | 88,751 | 93,383 | 80,343 |
Total operating expenses | 5,015,642 | 4,984,407 | 3,310,904 |
Operating income (loss) | 418,330 | (24,398) | 369,547 |
Other income and (expenses): | |||
Net interest deductions | (292,286) | (242,750) | (119,198) |
Other income (deductions) | 71,305 | (6,189) | (3,499) |
Total other income and (expenses) | (220,981) | (248,939) | (122,697) |
Income (loss) before income taxes | 197,349 | (273,337) | 246,850 |
Income tax expense (benefit) | 41,832 | (75,653) | 39,648 |
Net income (loss) attributable to Southwest Gas Holdings, Inc. | 150,889 | (203,290) | 200,779 |
Southwest Gas Corporation | |||
Regulated operations revenues | 2,499,564 | 1,935,069 | 1,521,790 |
Operating expenses: | |||
Net cost of gas sold | 1,246,901 | 789,216 | 430,907 |
Operations and maintenance | 511,646 | 491,928 | 438,550 |
Depreciation and amortization | 295,462 | 263,043 | 253,398 |
Taxes other than income taxes | 87,261 | 83,197 | 80,343 |
Total operating expenses | 2,141,270 | 1,627,384 | 1,203,198 |
Operating income (loss) | 358,294 | 307,685 | 318,592 |
Other income and (expenses): | |||
Net interest deductions | (149,830) | (115,880) | (97,560) |
Other income (deductions) | 70,661 | (6,884) | (4,559) |
Total other income and (expenses) | (79,169) | (122,764) | (102,119) |
Income (loss) before income taxes | 279,125 | 184,921 | 216,473 |
Income tax expense (benefit) | 36,899 | 30,541 | 29,338 |
Net income (loss) attributable to Southwest Gas Holdings, Inc. | $ 242,226 | $ 154,380 | $ 187,135 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - Southwest - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net income | $ 155,517 | $ (197,684) | $ 207,202 |
Defined benefit pension plans: | |||
Net actuarial gain (loss) | (2,423) | 3,099 | 44,974 |
Amortization of prior service cost | 133 | 133 | 729 |
Amortization of net actuarial loss | 1,014 | 26,461 | 33,894 |
Regulatory adjustment | (1,011) | (21,457) | (67,027) |
Net defined benefit pension plans | (2,287) | 8,236 | 12,570 |
Forward-starting interest rate swaps (“FSIRS”): | |||
Amounts reclassified into net income | 0 | 416 | 1,652 |
Net forward-starting interest rate swaps | 0 | 416 | 1,652 |
Total other comprehensive income (loss), net of tax | 455 | 2,519 | 14,242 |
Comprehensive income (loss) | 155,972 | (195,165) | 221,444 |
Southwest Gas Corporation | |||
Net income | 242,226 | 154,380 | 187,135 |
Defined benefit pension plans: | |||
Net actuarial gain (loss) | (2,423) | 3,099 | 44,974 |
Amortization of prior service cost | 133 | 133 | 729 |
Amortization of net actuarial loss | 1,014 | 26,461 | 33,894 |
Regulatory adjustment | (1,011) | (21,457) | (67,027) |
Net defined benefit pension plans | (2,287) | 8,236 | 12,570 |
Forward-starting interest rate swaps (“FSIRS”): | |||
Amounts reclassified into net income | 0 | 416 | 1,652 |
Net forward-starting interest rate swaps | 0 | 416 | 1,652 |
Total other comprehensive income (loss), net of tax | (2,287) | 8,652 | 14,222 |
Comprehensive income (loss) | $ 239,939 | $ 163,032 | $ 201,357 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS - Southwest - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOW FROM OPERATING ACTIVITIES: | |||
Net income | $ 155,517 | $ (197,684) | $ 207,202 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 440,908 | 470,455 | 371,041 |
Deferred income taxes | 56,771 | (72,048) | 61,212 |
Gain on sale of property | (4,683) | (7,865) | (6,906) |
Changes in undistributed stock compensation | 8,079 | 9,446 | 9,294 |
Equity AFUDC | (1,951) | (465) | 0 |
Changes in current assets and liabilities: | |||
Accounts receivable, net of allowances | (22,583) | (193,775) | (51,554) |
Accrued utility revenue | (4,900) | (3,200) | (2,500) |
Deferred purchased gas costs | (117,770) | (147,215) | (343,728) |
Accounts payable | (286,161) | 293,909 | 50,426 |
Accrued taxes | (2,302) | 17,929 | (6,725) |
Other current assets and liabilities | 304,110 | (207,853) | (89,209) |
Changes in deferred charges and other assets | (10,444) | 16,886 | (13,541) |
Changes in other liabilities and deferred credits | (76,610) | (26,485) | (73,629) |
Net cash provided by operating activities | 509,211 | 407,460 | 111,383 |
CASH FLOW FROM INVESTING ACTIVITIES: | |||
Construction expenditures and property additions | (872,521) | (859,421) | (715,626) |
Changes in customer advances | (8,905) | 21,506 | 15,974 |
Other | 9,909 | 17,822 | 18,256 |
Net cash provided by (used in) investing activities | 150,966 | (838,902) | (3,035,656) |
CASH FLOW FROM FINANCING ACTIVITIES: | |||
Dividends paid | (174,574) | (160,563) | (138,222) |
Issuance of long-term debt, net | 1,044,861 | 1,067,805 | 1,660,696 |
Retirement of long-term debt | (248,328) | (499,914) | (452,664) |
Change in long-term credit facility and commercial paper | (50,000) | (80,000) | (20,000) |
Issuance of short-term debt | 450,000 | 0 | 1,850,000 |
Other changes in short-term debt | (1,916,748) | (366,193) | (48,000) |
Withholding remittance – share-based compensation | (1,990) | (2,662) | (1,264) |
Other, including principal payments on finance leases | (15,881) | (24,172) | (729) |
Net cash provided by (used in) financing activities | (700,795) | 356,480 | 3,063,458 |
Change in cash and cash equivalents | 139,345 | ||
Cash and cash equivalents at beginning of period | 123,078 | 222,697 | 83,352 |
Cash and cash equivalents at end of period | 106,536 | 123,078 | 222,697 |
SUPPLEMENTAL INFORMATION: | |||
Interest paid, net of amounts capitalized | 282,626 | 219,825 | 104,352 |
Income taxes paid (received), net | 9,365 | 12,001 | 4,208 |
Southwest Gas Corporation | |||
CASH FLOW FROM OPERATING ACTIVITIES: | |||
Net income | 242,226 | 154,380 | 187,135 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 295,462 | 263,043 | 253,398 |
Deferred income taxes | 66,611 | 42,387 | 53,237 |
Gain on sale of property | (136) | (1,503) | 0 |
Changes in undistributed stock compensation | 4,877 | 5,776 | 6,392 |
Equity AFUDC | (1,869) | 0 | 0 |
Changes in current assets and liabilities: | |||
Accounts receivable, net of allowances | (35,114) | (64,414) | (22,806) |
Accrued utility revenue | (4,900) | (3,200) | (2,500) |
Deferred purchased gas costs | (102,765) | (158,975) | (343,728) |
Accounts payable | (260,403) | 243,276 | 57,764 |
Accrued taxes | (8,964) | 21,754 | 7,753 |
Other current assets and liabilities | 311,593 | (188,737) | (70,271) |
Changes in deferred charges and other assets | (38,975) | (1,694) | (28,743) |
Changes in other liabilities and deferred credits | (76,098) | (27,690) | (72,386) |
Net cash provided by operating activities | 391,545 | 284,403 | 25,245 |
CASH FLOW FROM INVESTING ACTIVITIES: | |||
Construction expenditures and property additions | (762,081) | (683,131) | (601,983) |
Changes in customer advances | (8,905) | 21,506 | 15,973 |
Other | 414 | 6,917 | (32) |
Net cash provided by (used in) investing activities | (770,572) | (654,708) | (586,042) |
CASH FLOW FROM FINANCING ACTIVITIES: | |||
Contributions from parent | 530,000 | 0 | 202,583 |
Dividends paid | (150,900) | (122,200) | (111,400) |
Issuance of long-term debt, net | 297,759 | 891,663 | 297,318 |
Retirement of long-term debt | 0 | (275,000) | 0 |
Change in long-term credit facility and commercial paper | (50,000) | (80,000) | (20,000) |
Issuance of short-term debt | 450,000 | 0 | 250,000 |
Other changes in short-term debt | (675,000) | (25,000) | (57,000) |
Withholding remittance – share-based compensation | (1,776) | (2,569) | (1,263) |
Other, including principal payments on finance leases | (1,725) | (3,457) | (1,820) |
Net cash provided by (used in) financing activities | 398,358 | 383,437 | 558,418 |
Change in cash and cash equivalents | 19,331 | 13,132 | (2,379) |
Cash and cash equivalents at beginning of period | 51,823 | 38,691 | 41,070 |
Cash and cash equivalents at end of period | 71,154 | 51,823 | 38,691 |
SUPPLEMENTAL INFORMATION: | |||
Interest paid, net of amounts capitalized | 139,747 | 107,980 | 90,240 |
Income taxes paid (received), net | $ 0 | $ 5 | $ (13,529) |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY - Southwest - USD ($) $ in Thousands | Total | Southwest Gas Corporation | Common stock shares | Common stock shares Southwest Gas Corporation | Additional paid-in capital | Additional paid-in capital Southwest Gas Corporation | Accumulated other comprehensive loss | Accumulated other comprehensive loss Southwest Gas Corporation | Retained earnings | Retained earnings Southwest Gas Corporation |
Beginning balance (in shares) at Dec. 31, 2020 | 57,193,000 | |||||||||
Beginning balance at Dec. 31, 2020 | $ 58,823 | $ 1,609,155 | $ 1,410,345 | $ (61,003) | $ (61,135) | $ 1,067,978 | $ 835,146 | |||
Net income | 200,779 | 187,135 | ||||||||
Share-based compensation | 5,983 | (854) | ||||||||
Contributions from Southwest Gas Holdings, Inc. | 202,583 | |||||||||
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax | 12,570 | 12,570 | ||||||||
FSIRS amounts reclassified to net income, net of tax | $ 1,652 | $ 1,652 | 1,652 | 1,652 | ||||||
Dividends declared to Southwest Gas Holdings, Inc. | (142,428) | (114,600) | ||||||||
Ending balance (in shares) at Dec. 31, 2021 | 60,422,000 | 47,482,000 | ||||||||
Ending balance at Dec. 31, 2021 | 2,527,937 | $ 62,052 | $ 49,112 | 1,824,216 | 1,618,911 | (46,761) | (46,913) | 1,114,313 | 906,827 | |
Net income | (203,290) | 154,380 | ||||||||
Share-based compensation | 4,058 | (852) | ||||||||
Contributions from Southwest Gas Holdings, Inc. | 0 | |||||||||
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax | 8,236 | 8,236 | ||||||||
FSIRS amounts reclassified to net income, net of tax | $ 416 | 416 | 416 | 416 | ||||||
Dividends declared to Southwest Gas Holdings, Inc. | (167,279) | (125,000) | ||||||||
Ending balance (in shares) at Dec. 31, 2022 | 67,119,143 | 67,119,000 | 47,482,000 | |||||||
Ending balance at Dec. 31, 2022 | 2,569,175 | $ 68,749 | $ 49,112 | 2,287,183 | 1,622,969 | (44,242) | (38,261) | 747,069 | 935,355 | |
Net income | 150,889 | 242,226 | ||||||||
Share-based compensation | 3,608 | (507) | ||||||||
Contributions from Southwest Gas Holdings, Inc. | 530,000 | |||||||||
Net actuarial gain (loss) arising during period, less amortization of unamortized benefit plan cost, net of tax | (2,287) | (2,287) | ||||||||
FSIRS amounts reclassified to net income, net of tax | $ 0 | 0 | 0 | 0 | ||||||
Dividends declared to Southwest Gas Holdings, Inc. | (178,485) | (158,600) | ||||||||
Ending balance (in shares) at Dec. 31, 2023 | 71,563,750 | 71,564,000 | 47,482,000 | |||||||
Ending balance at Dec. 31, 2023 | $ 3,183,615 | $ 73,194 | $ 49,112 | $ 2,541,790 | $ 2,156,577 | $ (43,787) | $ (40,548) | $ 738,839 | $ 1,018,474 |
Background, Organization, and S
Background, Organization, and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background, Organization, and Summary of Significant Accounting Policies | Note 1 - Background, Organization, and Summary of Significant Accounting Policies Nature of Operations. This is a combined annual report of Southwest Gas Holdings, Inc. and its subsidiaries (the “Company”) and Southwest Gas Corporation and its subsidiaries (“Southwest” or the “natural gas distribution” segment). The notes to the consolidated financial statements apply to both entities. Southwest Gas Holdings, Inc., a Delaware corporation, is a holding company, owning all of the shares of common stock of Southwest, all of the shares of common stock of Centuri Group, Inc. (“Centuri” or the “utility infrastructure services” segment), and until February 14, 2023, all of the shares of common stock of MountainWest Pipelines Holding Company (“MountainWest” or the “pipeline and storage” segment). In December 2022, the Company announced that its Board of Directors (the “Board”) unanimously determined to take strategic actions to simplify the Company’s portfolio of businesses. These actions included entering into a definitive agreement to sell 100% of MountainWest in an all-cash transaction to Williams Partners Operating LLC (“Williams”) for $1.5 billion in total enterprise value, subject to certain a djustments. The MountainWest transaction closed on February 14, 2023. As part of this simplification strategy, the Company previously communicated that it would pursue a separation of Centuri and has continued to undertake significant efforts toward a near-term separation, including submitting a confidential draft registration statement on Form S-1 to the U.S. Securities and and Exchange Commission (the “SEC”). See Note 15 - Acquisitions and Dispositions for additional information. On November 21, 2023, the Company and the Icahn Group entered into an Amended and Restated Cooperation Agreement (the “Agreement”), which amended, restated, superseded, and replaced in its entirety the Amended and Restated Cooperation Agreement entered into as of October 24, 2022. Among other things, the Agreement provides for the nomination of the Icahn Designees for election at the Company's 2024 annual meeting of stockholders, the extension of the standstill restrictions on the Icahn Group through the Company's 2024 annual meeting of stockholders, subject to certain restrictions and exceptions, and subject to certain ownership thresholds by the Icahn Group and the approval by the Board’s Strategic Transactions Committee, certain aspects of the corporate structure and conduct of the first annual meeting of any independent, publicly traded company resulting from a separation of the Company's businesses. On November 3, 2023, the Board authorized a dividend of one preferred stock purchase right (a “Right”) for each outstanding share of common stock, $1 par value per share, of the Company to stockholders on record at the close of business on November 17, 2023. The description and terms of the Rights are set forth in a Tax-Free Spin Protection Plan, dated as of November 5, 2023 (as may be amended from time to time, the “Plan”), between the Company and Equiniti Trust Company, LLC, as rights agent. Each Right entitles the registered holder to purchase from the Company one ten-thousandth of a share of Series A Junior Participating Preferred Stock, no par value per share, of the Company (the “Series A Preferred”), at a purchase price of $300.00 per one ten-thousandth of a share of Series A Preferred, subject to adjustment. The Rights have a de minimis fair value and will expire in accordance with the provisions of the Plan. By adopting the Plan, the Board is seeking to preserve the Company’s ability to effectuate a separation of Centuri Holdings, Inc., a wholly owned subsidiary of the Company formed for purposes of completing the separation (“Centuri Holdings”) (the “Spin-Off Transaction”) that would be tax-free to the Company (the “Tax-Free Status”). While the Company intends that any Spin-Off Transaction, if effected, would qualify as a tax-free transaction to the Company’s stockholders, the ability to effect a spin-off that is tax-free to the Company (as opposed to its stockholders) could be lost if certain stock purchases (including by existing or new holders in the open market) are treated as part of a plan pursuant to which one or more persons directly or indirectly acquire a 50% or greater interest in the Company (a “355 Ownership Change”) within applicable time periods for purposes of Section 355(e) of the Internal Revenue Code. The Company believes that there is minimal capacity for changes in the ownership of its stock before a 355 Ownership Change could occur. The Plan is intended to restrict acquisitions of Company stock that could cause a 355 Ownership Change and could impair the Company’s ability to effectuate a Spin-Off Transaction that has Tax-Free Status. The Board believes it is in the best interest of the Company and its stockholders to preserve the Company’s ability to effectuate a Spin-Off Transaction with Tax-Free Status. The Plan has not been triggered as of December 31, 2023. Southwest is engaged in the business of purchasing, distributing, and transporting natural gas for customers in portions of Arizona, Nevada, and California. Public utility rates, practices, facilities, and service territories of Southwest are subject to regulatory oversight. The timing and amount of rate relief can materially impact results of operations. Natural gas purchases and the timing of related recoveries can materially impact liquidity. Results for the natural gas distribution segment are higher during winter periods due to the seasonality incorporated in its regulatory rate structures. Centuri is a strategic utility infrastructure services company dedicated to partnering with North America’s gas and electric providers to build and maintain the energy network that powers millions of homes across the United States (“U.S.”) and Canada. Centuri derives revenue primarily from installation, replacement, repair, and maintenance of energy networks. Centuri operates in the U.S. primarily as NPL Construction Co. (“NPL”), New England Utility Constructors, Inc. (“Neuco”), Linetec Services, LLC (“Linetec”), and Riggs Distler & Company, Inc. (“Riggs Distler”), and in Canada, primarily as NPL Canada Ltd. (“NPL Canada”). Utility infrastructure services activity is seasonal in many of Centuri’s operating areas. Peak periods are the summer and fall months in colder climate areas, such as the northeastern and midwestern U.S. and in Canada. In warmer climate areas, such as the southwestern and southeastern U.S., utility infrastructure services activity continues year round. Basis of Presentation. The Company follows accounting principles generally accepted in the United States (“U.S. GAAP”) in accounting for all of its businesses. Unless specified otherwise, all amounts are in U.S. dollars. Accounting for regulated operations conforms with U.S. GAAP as applied to rate-regulated companies and as prescribed by federal agencies and commissions of the various states in which the rate-regulated companies operate. 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. In the first quarter of 2023, management identified a misstatement related to its accounting for the cost of gas sold at Southwest, thereby determining that Net cost of gas sold was overstated in 2021 and 2022 by $2.3 million and $5.7 million, respectively. Southwest made an adjustment in the first quarter of 2023 to reduce Net cost of gas sold and to increase its asset balance for Deferred purchased gas costs by $8 million. Also in the first quarter of 2023, the Company identified an approximately $21 million misstatement related to its initial estimation of the loss recorded upon reclassifying MountainWest as an asset held for sale during the year ended December 31, 2022. Consequently, the impairment loss for the year ended December 31, 2022 was understated by approximately $21 million, which was corrected in the first quarter of 2023. The Company (and Southwest, with respect to Net cost of gas sold) assessed, both quantitatively and qualitatively, the impact of these items on previously issued financial statements, concluding they were not material to any prior period or the current period financial statements. Consolidation. The accompanying financial statements (as of and for the periods presented) are presented on a consolidated basis for Southwest Gas Holdings, Inc. and all subsidiaries and Southwest Gas Corporation and all subsidiaries (except those accounted for using the equity method as discussed below). All significant intercompany balances and transactions have been eliminated with the exception of transactions between Southwest and Centuri in accordance with accounting treatment for rate-regulated entities. Centuri, through its subsidiaries, holds a 50% interest in W.S. Nicholls Western Construction Ltd. (“Western”), a Canadian infrastructure services company that is a variable interest entity. Centuri determined that it is not the primary beneficiary of the entity due to a shared-power structure; therefore, Centuri does not consolidate the entity and has recorded its investment, and results related thereto, using the equity method. The investment in Western, related earnings, and dividends received from Western in 2023 and 2022 were not significant. C enturi’s maximum exposure to loss as a result of its involvement with Western was estimated at $12.4 million as of December 31, 2023. Fair Value Measurements . Certain assets and liabilities are reported at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP states that a fair value measurement should be based on the assumptions that market participants would use in pricing the asset or liability and establishes a fair value hierarchy that ranks the inputs used to measure fair value by their reliability. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to fair values derived from unobservable inputs (Level 3 measurements). Financial assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities that a company has the ability to access at the measurement date. Level 2 – inputs other than quoted prices included within Level 1 that are observable for similar assets or liabilities, either directly or indirectly. Level 3 – unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The Company primarily used quoted market prices and other observable market pricing information (exclusive of any purchase accounting adjustments) in valuing cash and cash equivalents, long-term debt outstanding, and assets of the qualified pension plan and the postretirement benefits other than pensions required to be recorded and/or disclosed at fair value. The Company uses prices and inputs that are current as of the measurement date, and recognizes transfers between levels at either the actual date of an event or a change in circumstance that caused the transfer. Net Regulated Operations Plant. Net regulated operations plant includes gas plant at original cost, less the accumulated provision for depreciation and amortization, plus any unamortized balance of acquisition adjustments. Original cost generally includes contracted services, material, payroll, and related costs such as taxes and certain benefits, general and administrative expenses applicable to construction efforts, and an allowance for funds used during construction, less contributions in aid of construction. Aligned with regulatory treatment, when plant is retired, the cost of such plant, net of any salvage value, is charged to accumulated depreciation. See also Depreciation and Amortization below. Other Property and Investments. Other property and investments on Southwest’s and the Company’s Consolidated Balance Sheets includes: December 31, (Thousands of dollars) 2023 2022 Net cash surrender value of COLI policies $ 146,546 $ 136,245 Other property 6,112 33,152 Total Southwest Gas Corporation 152,658 169,397 Non-regulated property, equipment, and intangibles 1,752,094 1,677,218 Non-regulated accumulated provision for depreciation and amortization (675,632) (596,518) Other property and investments 37,220 31,075 Total Southwest Gas Holdings, Inc. $ 1,266,340 $ 1,281,172 Included in the table above are the net cash surrender values of company-owned life insurance (“COLI”) policies. These life insurance policies on members of management and other key employees are used by Southwest to indemnify itself against the loss of talent, expertise, and knowledge, as well as to provide indirect funding for certain nonqualified benefit plans. The term non-regulated in regard to assets and related balances in the table above is in reference to the non-rate regulated operations of Centuri. Intangible Assets . Intangible assets (other than goodwill) are amortized using the straight-line method to reflect the pattern of economic benefits consumed over the estimated periods benefited. The recoverability of intangible assets is evaluated when events or circumstances indicate that a revision of estimated useful lives is warranted or that an intangible asset may be impaired. These intangible assets are included in Other property and investments on the Company’s Consolidated Balance Sheets. Centuri’s intangible assets (other than goodwill) have finite lives and are associated with businesses previously acquired. The balances at December 31, 2023 and 2022, respectively, were as follows: December 31, 2023 (Thousands of dollars) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 392,512 $ (85,212) $ 307,300 Trade names and trademarks 79,408 (17,660) 61,748 Total $ 471,920 $ (102,872) $ 369,048 December 31, 2022 Customer relationships $ 391,758 $ (63,509) $ 328,249 Trade names and trademarks 79,277 (12,278) 66,999 Total $ 471,035 $ (75,787) $ 395,248 Collective amortization expense for these acquired intangible assets for the years ended December 31, 2023, 2022, and 2021 wa s $26.7 million , $29.8 million, and $17.3 million, respectively. The weighted-average amortization periods for customer relationships and trade names and trademarks are 19 years and 15 years, respectively. The estimated future amortization of the above intangible assets for the next five years and thereafter is as follows: (Thousands of dollars) 2024 $ 26,736 2025 26,723 2026 26,499 2027 26,126 2028 25,809 Thereafter 237,155 Total $ 369,048 See Note 2 - Regulated Operations Plant and Leases for additional information regarding natural gas distribution i ntangible assets . Cash and Cash Equivalents. For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand, money market funds, and financial instruments with original maturities of three months or less. Such investments are carried at cost, which approximates fair value. Cash and cash equivalents of the Company includ e $48.9 million and $29.7 million of money market fund investments at December 31, 2023 and 2022, respectively. Of these amounts, $38.6 million and $17.6 million at December 31, 2023 and 20 22, respectively, were held by Southwest. The money market fund investments were acquired and are generally redeemable at their net asset value. Noncash investing activities for the Company and Southwest include capital expenditures that were not yet paid as of year end, thereby remaining in accounts payable, the amounts related to which decreased by approximately $17.1 million and $20.9 million, for the Company and Southwest, respectively during the year ended December 31, 2023; increased $23.4 million and $19.7 million, for the Company and Southwest, respectively, during the year ended December 31, 2022; and, increased $15.5 million and $13.9 million, for the Company and Southwest, respectively, during the year ended December 31, 2021. Additionally for Southwest, noncash investing activities include customer advances applied as contributions toward utility construction activity, and such amounts were not significant for the periods presented herein. Also, see Note 2 - Regulated Operations Plant and Leases for information related to right-of-use (“ROU”) assets obtained in exchange for lease liabilities, which are noncash investing and financing activities. ROU assets and lease liabilities are also subject to noncash impacts as a result of other factors, such as lease terminations and modifications. The Other change in short-term debt as presented on the Company’s and Southwest’s Consolidated Statements of Cash Flows is comprised of repayments of short-term debt and changes in the current portion of credit facilities. Income Taxes. The asset and liability method of accounting is utilized for the recognition of income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are anticipated 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, 2023, the Company had cumulative book earnings of approximately $94 million in its foreign jurisdiction. Management previously asserted and continues to assert that all the earnings of Centuri’s Canadian subsidiaries will be permanently reinvested in Canada. As a result, no U.S. deferred income taxes have been recorded related to cumulative foreign earnings. The Financial Accounting Standards Board (the “FASB”) issued guidance to allow an accounting policy election of either (i) treating taxes attributable to future taxable income related to Global Intangible Low-Taxed Income (“GILTI”) as a current period expense when incurred or (ii) recognizing deferred taxes for temporary differences expected to reverse as GILTI in future years. The Company elected to treat GILTI as a current period cost when incurred and has considered the estimated 2023 GILTI impact to its 2023 tax expense, which was immaterial. In April 2023, the Internal Revenue Service (“IRS”) issued Revenue Procedure 2023-15, which provides a safe harbor method of accounting that taxpayers may use to determine whether expenditures to repair, maintain, replace, or improve natural gas transmission and distribution property must be capitalized for tax purposes. The Company and Southwest are currently reviewing this revenue procedure to determine the potential impact on their financial position, results of operations, and cash flows. Deferred Purchased Gas Costs. The various regulatory commissions have established procedures to enable Southwest to adjust 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. In July 2023, the Arizona Corporation Commission (the “ACC”) approved an increase in the gas cost balancing account (“GCBA”) rate, over a two-year period, as an enhancement to the existing gas cost recovery mechanism, given the $358 million Arizona account balance existing as of May 31, 2023. The increased GCBA rate of $0.20 per therm will support timely recovery of the existing balance. Based on the design of base tariff gas cost rates in Arizona and surcharges, the account balance existing as of that date is deemed generally recoverable over the next twelve months, and it is therefore classified as a current asset on the balance sheets of the Company and Southwest. Prepaid and other current assets . Prepaid and other current assets f or Southwest and the Company include, among other things, temporary accruals for unrecovered purchased gas costs of $207 million as of December 31, 2022, with no corresponding asset balance as of December 31, 2023. Final amounts are subject to calculations of Deferred Purchased Gas Costs , and characterized accordingly the following month, once amounts are finalized through the settlement process. Additionally, Southwest had gas pipe materials and operating supplies of $83.4 million and $77.3 million as of December 31, 2023 and 2022, respectively (carried at weighted average cost). Held for sale. The Company and Southwest recognize, when applicable, the assets and liabilities of a disposal group as held for sale in the period (i) it has approved and committed to a plan to sell the disposal group, (ii) the disposal group is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions to sell the disposal group have been initiated, (iv) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company and Southwest initially measure a disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until closing. Upon designation as held for sale, the Company and Southwest stop recording depreciation expense and assess the fair value of the disposal group less any costs to sell at each reporting period, until it is no longer classified as held for sale. See Note 15 - Acquisitions and Dispositions for information related to the MountainWest assets and liabilities held for sale. In the first quarter of 2023, the Company and Southwest concluded certain assets associated with its previous corporate headquarters met the criteria to be classified as held for sale. As a result, the Company and Southwest reclassified approximately $27 million from Other property and investments to Current assets held for sale on their respective Consolidated Balance Sheets in the first quarter of 2023. In 2023, the Company and Southwest recorded an estimated loss of $5.2 million on the assets based upon an updated fair value less costs to sell, which is recorded in Other income (deductions). The sale was completed in January 2024. Goodwill. As required by U.S. GAAP, goodwill is assessed for impairment annually, or more frequently, if circumstances indicate impairment to the carrying value of goodwill may have occurred. The goodwill impairment analysis was conducted as of October 1st using a qualitative assessment, as permitted by U.S. GAAP. Management of the Company and Southwest considered its reporting units and segments, determining that they remained consistent between periods presented below, and that no change was necessary with regard to the level at which goodwill is assessed for impairment. The Company and Southwest determined that it is not more likely than not that the fair values of the Centuri and Southwest reporting units were less than their carrying amounts in either 2023 or 2022, and therefore, no impairment was recorded in either year in regard to these entities. In regard to MountainWest, a loss was recognized, primarily as a goodwill impairment of $449.6 million in the fourth quarter of 2022. As noted above, an additional $21 million loss was recorded in the first quarter of 2023. See Note 15 - Acquisitions and Dispositions for additional information. There can also be no assurances that future assessments of remaining goodwill on the Company’s and Southwest’s balance sheets will not result in an impairment; various factors, including the planned separation of Centuri (including any partial sell-down, or series of partial sell-downs, that may occur and result in reassessment of reporting units or other factors that impact the level at which goodwill is assessed), or changes in economic conditions, governmental monetary policies, interest rates, or others, on their own or in combination, could result in the fair value of the related reporting units being lower than their carrying value. Goodwill in the Natural Gas Distribution and Utility Infrastructure Services segments is included in their respective Consolidated Balance Sheets as follows: (Thousands of dollars) Natural Gas Distribution Utility Infrastructure Services Total Company Balance, December 31, 2021 $ 10,095 $ 785,058 $ 795,153 Additional goodwill from Graham County acquisition 1,060 — 1,060 Measurement-period adjustments from Riggs Distler acquisition — (1,924) (1,924) Foreign currency translation adjustment — (7,039) (7,039) Balance, December 31, 2022 11,155 776,095 $ 787,250 Foreign currency translation adjustment — 2,479 2,479 Balance, December 31, 2023 $ 11,155 $ 778,574 $ 789,729 Other Current Liabilities. Management recognizes in its balance sheets various liabilities that are expected to be settled through future cash payments within the next twelve months, including certain regulatory mechanisms (refer to Note 5 - Regulatory Assets and Liabilities ), customary accrued expenses for employee compensation and benefits, declared but unpaid dividends, and miscellaneous other accrued liabilities. Other current liabilities for the Company include $44.4 million and $41.6 million of dividends declared as of December 31, 2023 and 2022, respectively. Also included in the balance was $88 million in accrued purchased gas cost, with no corresponding liability balance as of December 31, 2022. See also Deferred Purchased Gas Costs and Prepaid and other current assets above. Accumulated Removal Costs. Approved regulatory practices allow Southwest to include in depreciation expense a component intended to recover removal costs associated with regulated operations plant retirements. In accordance with the SEC position on presentation of these amounts, management reclassifies estimated removal costs from Accumulated depreciation to Accumulated removal costs within the liabilities section of the Consolidated Balance Sheets. Management regularly updates the estimated accumulated removal costs as amounts fluctuate between periods depending on the level of replacement work performed (and actual cost experience) compared to the estimated cost of removal in rates. Revenue. See Note 3 - Revenue for information related to revenue recognition for Southwest and Centuri. Intercompany Transactions. Centuri recognizes revenues generated from contracts with Southwest (see Note 13 - Segment Information ). The accounts receivable balance, revenues, and associated profits are included in the consolidated financial statements of the Company and Southwest and are not eliminated during consolidation in accordance with accounting treatment for rate-regulated entities. Utility Infrastructu r e Services Expenses. Centuri’s utility infrastructure services expenses in the Consolidated Statements of Income includes payroll expenses, office and equipment rental costs, subcontractor expenses, training, job-related materials, gains and losses on equipment sales, and professional fees. Net Cost of Gas Sold. Components of net cost of gas sold include natural gas commodity costs (fixed-price and variable-rate), pipeline capacity/transportation costs, and any actual settled costs of natural gas derivative instruments, where relevant. Also included are the net impacts of PGA deferrals and recoveries, which by their inclusion, result in net cost of gas sold overall that is comparable to amounts included in billed gas operating revenues. Differences between amounts incurred with suppliers, transmission pipelines, etc. and amounts already included in customer rates, are temporarily deferred in PGA accounts pending inclusion in customer rates. Operations and Maintenance Expense. Operations and maintenance expense includes Southwest’s operating and maintenance costs associated with serving utility customers and maintaining its distribution and transmission systems, uncollectible customer accounts expense, administrative and general salaries and expense, and employee benefits expense excluding relevant non-service cost components (that have been reclassified to Other income (deductions) due to requirements in U.S. GAAP), as well as legal expense (including injuries and damages), professional and other external contracted services, and other business expenses. Depreciation and Amortization. Regulated operations plant depreciation is computed on the straight-line remaining life method at composite rates considered sufficient to amortize costs over estimated service lives, including components which compensate for removal costs (net of salvage value), and retirements, as approved by the appropriate regulatory agency. When plant is retired from service, the original cost of plant, including cost of removal, less salvage, is charged to the accumulated provision for depreciation. See also discussion regarding Accumulated Removal Costs above. Other regulatory assets, including acquisition adjustments, are amortized when appropriate, over time periods authorized by regulators. Non-regulated operations, including utility infrastructure services-related property and equipment, are depreciated on a straight-line method based on the estimated useful lives of the related assets. Costs and gains related to refunding regulated operations 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 regulated operations plant construction. AFUDC is capitalized as part of the cost of regulated operations plant. The debt portion of AFUDC is reported in the Company’s and Southwest’s Consolidated Statements of Income as an offset to Net interest deductions and the equity portion is reported as Other income. Regulated operations plant construction costs, including AFUDC, are recoverable as part of authorized rates through depreciation when completed projects are placed into operation, and general rate relief is requested and granted. AFUDC, disaggregated by type, included in the Company’s and Southwest’s Consolidated Statements of Income are presented in the table below: (Thousands of dollars) 2023 2022 2021 AFUDC: Debt portion $ 6,851 $ 3,535 $ 1,046 Equity portion 1,869 — — AFUDC capitalized as part of regulated operations plant $ 8,720 $ 3,535 $ 1,046 AFUDC rate 6.30 % 2.64 % 0.96 % AFUDC related to MountainWest includes $86,000 of debt and $465,000 of equity during the year ended December 31, 2022, which is not reflected in the table above. AFUDC related to MountainWest in 2023 was not significant. Debt and equity AFUDC at Southwest were impacted in 2023, 2022, and 2021 by the amount of short-term debt outstanding based on the regulatory formula for each component. 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) 2023 2022 2021 Southwest Gas Corporation: Change in COLI policies $ 10,100 $ (5,400) $ 8,800 Interest income 50,757 16,183 5,113 Equity AFUDC 1,869 — — Non-service components of net periodic benefit cost 20,387 (751) (14,021) Miscellaneous expense (12,452) (16,916) (4,451) Southwest Gas Corporation – total ot |
Regulated Operations Plant and
Regulated Operations Plant and Leases | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Regulated Operations Plant and Leases | Note 2 - Regulated Operations Plant and Leases Net Regulated Operations Plant Major classes of regulated operations plant (plant previously associated with MountainWest is not included as the MountainWest disposal group was deemed held for sale as of December 31, 2022) and their respective balances as of December 31, 2023 and 2022 were as follows: December 31, (Thousands of dollars) 2023 2022 Gas plant: Storage $ 104,527 $ 104,218 Transmission 402,591 399,357 Distribution 8,684,949 8,039,793 General 539,188 505,109 Software and software-related intangibles 393,444 389,496 Other 15,663 15,934 10,140,362 9,453,907 Less: accumulated depreciation and amortization (2,822,669) (2,674,157) Construction work in progress 200,549 244,750 Net regulated operations plant $ 7,518,242 $ 7,024,500 Regulated operations plant depreciation is computed on the straight-line remaining life method at composite rates considered sufficient to amortize costs over estimated service lives, including components which are intended to compensate for removal costs (net of salvage value), and retirements, based on the processes of regulatory proceedings and related regulatory commission approvals and/or mandates. In 2023, annual regulated operations depreciation and amortization expense in regard to Southwest averaged 2.6% of the original cost of depreciable and amortizable property, and 2.7% in 2022 and 2021. Transmission and distribution plant are associated with the core natural gas delivery infrastructure, and combined, constitute the majority of gas plant. Annual regulated operations depreciation expense for Southwest averaged approximately 2.2% of the original cost of depreciable transmission and distribution plant during the period 2021 through 2023. Depreciation and amortization expense on gas plant, including intangibles, was as follows: (Thousands of dollars) 2023 2022 2021 Depreciation and amortization expense $ 256,847 $ 243,857 $ 230,245 Included in the figures above is amortization of regulated operations intangibles of $20.5 million, $21 million, and $17.7 million for the years ended December 31, 2023, 2022, and 2021, respectively. The amounts above exclude regulatory asset and liability amortization. Leases Determinations are made as to whether an arrangement is a lease at inception. ROU assets represent the right to use an underlying asset for the lease term; lease liabilities represent obligations to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. When leases do not provide an implicit interest rate, an incremental borrowing rate based on information available at commencement is used in determining the present value of lease payments; an implicit rate, if readily determinable, is used. Lease terms utilized in the computations may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. When lease agreements include non-lease components, they are included with the lease component and accounted for as a single component, for all asset classes. Southwest has no significant operating, finance, or short-term leases. Centuri has operating and finance leases for corporate and field offices, construction equipment, and transportation ve hicles. Centuri is currently not a lessor in any significant lease arrangements. Centuri’s leases have remaining lease terms o f up to 15 years. Some of these include options to extend the leases, generally for optional terms of up to 5 years, and some include options to terminate the leases within 1 year. Centur i’s equipment l eases may include variable payment terms in addition to the fixed lease payments if machinery is used in excess of the standard work periods. These variable payments are not probable of occurring under the current operating environment and have not been included in consideration of lease payments. Short-term leases were not recorded on the balance sheet under the provisions of ASC 842, as permitted. Due to the seasonality of Centuri’s business, expense for short-term leases will fluctuate throughout the year with higher expense incurred during the warmer months. Executed lease agreements that had not yet commenced were insignificant as of December 31, 2023. The components of lease expense for Centuri were as follows: (Thousands of dollars) 2023 2022 2021 Operating lease cost $ 22,162 $ 17,881 $ 15,279 Finance lease cost: Amortization of ROU assets 7,780 7,702 2,138 Interest on lease liabilities 1,680 1,520 278 Total finance lease cost 9,460 9,222 2,416 Short-term lease cost 122,333 120,339 103,800 Total lease cost $ 153,955 $ 147,442 $ 121,495 Supplemental cash flow information related to Centuri leases for the years ended December 31, 2023, 2022, and 2021 was as follows: (Thousands of dollars) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 21,908 $ 16,725 $ 14,669 Operating cash flows from finance leases 1,680 1,520 278 Financing cash flows from finance leases 12,113 11,985 3,547 ROU assets obtained in exchange for lease obligations: Operating leases $ 50,173 $ 22,653 $ 11,597 Finance leases 1,625 28,861 3,332 Supplemental information related to Centuri leases, including location in the Consolidated Balance Sheets, is as follows: (Thousands of dollars) December 31, 2023 2022 Operating leases: Other property and investments $ 118,448 $ 85,270 Other current liabilities $ 19,363 $ 13,863 Other deferred credits and other long-term liabilities 105,215 77,119 Total operating lease liabilities $ 124,578 $ 90,982 Finance leases: Other property and investments $ 43,525 $ 51,313 Other current liabilities $ 11,370 $ 12,028 Other deferred credits and other long-term liabilities 24,334 34,238 Total finance lease liabilities $ 35,704 $ 46,266 Weighted average remaining lease term (in years) Operating leases 7.45 6.66 Finance leases 3.64 4.33 Weighted average discount rate Operating leases 4.88 % 4.06 % Finance leases 4.02 % 3.95 % The following is a schedule of maturities of Centuri lease liabilities as of December 31, 2023: (Thousands of dollars) Operating Leases Finance Leases 2024 $ 24,930 $ 12,674 2025 21,634 10,242 2026 19,201 7,651 2027 18,192 5,763 2028 15,916 1,728 Thereafter 49,120 748 Total lease payments 148,993 38,806 Less imputed interest 24,415 3,102 Total $ 124,578 $ 35,704 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 3 - Revenue The following information about the Company’s revenues is presented by segment. Southwest encompasses the natural gas distribution segment and Centuri encompasses the utility infrastructure services segment. Natural Gas Distribution Segment : Southwest recognizes revenue when it satisfies its performance by transferring gas to the customer. Revenues also include the net impacts of margin tracker/decoupling accruals based on criteria in U.S. GAAP for rate-regulated entities associated with alternative revenue programs. Revenues from customer arrangements and from alternative revenue programs are described below. Southwest acts as an agent for state and local taxing authorities in the collection and remittance of a variety of taxes, including sales and use taxes and surcharges. These taxes are not included in Regulated operations revenues. Management uses the net classification method to report taxes collected from customers to be remitted to governmental authorities. Southwest generally offers two types of services to its customers: tariff sales and transportation–only service. Tariff sales encompass sales to many types of customers (primarily residential) under various rate schedules, subject to cost-of-service ratemaking, which is based on the rate-regulation of state commissions and the Federal Energy Regulatory Commission (the “FERC”). Southwest provides both the commodity and the related distribution service to nearly all of its approximate 2.2 million customers, and only several hundred customers (who are eligible to secure their own gas) subscribe to transportation-only service. Natural gas is delivered and consumed by the customer simultaneously. The provision of service is represented by the turn of the meter dial and is the primary representation of the satisfaction of performance obligations of Southwest. The amount billable via regulated rates (both volumetric and fixed monthly rates as part of rate design) corresponds to the value to the customer, and management believes that the amount billable (amount Southwest has the right to invoice) is appropriate to utilize for purposes of recognizing revenue. Estimated amounts remaining unbilled since the last meter read date are restricted from being billed due only to the passage of time and therefore are also recognized for service provided through the balance sheet date. While natural gas service is typically recurring, there is generally not a contract term for utility service. Therefore, the contract term is not generally viewed to extend beyond the service provided to date, and customers can generally terminate service at will. Transportation-only service is also governed by tariff rate provisions. Transportation-only service is generally only available to very large customers under requirements of Southwest’s various tariffs. With this service, customers secure their own gas supply and Southwest provides transportation services to move the customer-supplied gas to the intended location. Southwest concluded that transportation/transmission service is suitable to an “over time” recognition model. Rate structures under Southwest’s regulation for transportation customers include a combination of volumetric charges and monthly “fixed” charges (including charges commonly referred to as capacity charges, demand charges, or reservation charges) as part of the rate design of regulated jurisdictions. These types of fixed charges represent a separate performance obligation associated with standing ready over the period of the month to deliver quantities of gas, regardless of whether the customer takes delivery of any quantity of gas. The performance obligations under these circumstances are satisfied over the course of the month under an output measure of progress based on time, which correlates to the period for which the charges are eligible to be invoiced. Under its regulation, Southwest enters into negotiated rate contracts for those customers located in proximity to another pipeline, which pose a threat of bypassing its distribution system. Southwest may also enter into similar contracts for customers otherwise able to satisfy their energy needs by means of alternative fuel to natural gas . Less than two dozen customers are party to contracts with rate components subject to negotiation. Many rate provisions and terms of service for these less common type s of contracts are also subject to regulatory oversight and tariff provisions. The performance obligations for these customers are satisfied similarly to those for other customers by means of transporting/delivering natural gas to the customer. Many or most of the rate components, and structures, for these types of customers are the same as those for similar customers without negotiated rate components; and the negotiated rates are within the parameters of the tariff guidelines. Furthermore, while some of these contracts include contract periods extending over time, including multiple years, as amounts billable under the contract are based on rates in effect for the customer for service provided to date, no significant financing component is deemed to exist. As indicated above, revenues also include the net impacts of margin tracker/decoupling accruals. All of Southwest’s service territories have decoupled rate structures (also referred to as alternative revenue programs) that are designed to eliminate the direct link between volumetric sales and revenue, thereby mitigating the impacts of unusual weather variability and conservation on margin. The primary alternative revenue programs involve permissible adjustments for differences between stated tariff benchmarks and amounts billed through revenue from contracts with customers via existing rates. Such adjustments are recognized monthly in revenue and in the associated regulatory asset/liability accounts in advance of rate adjustments intended to collect or return amounts recognized. Revenues recognized for the adjustment to the benchmarks noted are required to be presented separately from revenues from contracts with customers, and as such, are provided below and identified as related to alternative revenue programs (which excludes recoveries from customers). Southwest’s operating revenues included on the Consolidated Statements of Income of both the Company and Southwest include revenue from contracts with customers, which is shown below disaggregated by customer type, in addition to other categories of revenue: December 31, (Thousands of dollars) 2023 2022 2021 Residential $ 1,725,223 $ 1,324,794 $ 1,035,612 Small commercial 513,366 378,520 270,214 Large commercial 117,973 85,234 57,371 Industrial/other 75,219 50,894 42,313 Transportation 104,298 100,642 92,240 Revenue from contracts with customers 2,536,079 1,940,084 1,497,750 Alternative revenue program revenues (deferrals) (52,365) (18,478) 13,181 Other revenues (a) 15,850 13,463 10,859 Total Regulated operations revenues $ 2,499,564 $ 1,935,069 $ 1,521,790 (a) Amounts include late fees and other miscellaneous revenues, and may also include the impact of certain regulatory mechanisms. Utility Infrastructure Services Segment : During 2023, Utility infrastructure services segment management, in connection with Centuri’s planned separation, changed its service type revenue classification to align with changes in its organization structure, and as a result, prior year “other” revenue has been recast into gas infrastructure services or electric power infrastructure services to reflect these changes, with no impact to revenue overall. The majority of Centuri contracts are performed under unit-price contracts. Generally, these contracts state prices per unit of installation. Typical installations are accomplished in a few weeks or less. Revenues are recorded as installations are completed. Revenues are recorded for long-term fixed-price contracts in a pattern that reflects the transfer of control of promised goods and services to the customer over time. The amount of revenue recognized on fixed-price contracts is based on costs expended to date relative to anticipated final contract costs (a method of recognition based on inputs). Some unit-price contracts contain caps that if encroached, trigger revenue and loss recognition similar to a fixed-price contract model. Centuri is required to collect taxes imposed by various governmental agencies on the work performed for its customers. These taxes are not included in Utility infrastructure services revenues. Management uses the net classification method to report taxes collected from customers to be remitted to governmental authorities. Centuri derives revenue from the installation, replacement, repair, and maintenance of energy distribution systems. Centuri has operations in the U.S. and Canada. The primary focus of Centuri operations is replacement of natural gas distribution pipe and electric service lines, as well as new infrastructure installations. In addition, Centuri performs certain industrial construction activities for various customers and industries. Centuri has two types of agreements with its customers: master services agreements (“MSAs”) and bid contracts. Most of Centuri’s customers supply many of their own materials in order for Centuri to complete its work under the contracts. An MSA identifies most of the terms describing each party’s rights and obligations that will govern future work authorizations. An MSA is often effective for multiple years. A work authorization is issued by the customer to describe the location, timing, and any additional information necessary to complete the work for the customer. The combination of the MSA and the work authorization determines when a contract exists and revenue recognition may begin. Each work authorization is generally a single performance obligation as Centuri is performing a significant integration service. A bid contract is typically a one-time agreement for a specific project that has all necessary terms defining each party’s rights and obligations. Each bid contract is evaluated for revenue recognition individually. Control of assets created under bid contracts generally passes to the customer over time. Bid contracts often have a single performance obligation as Centuri is providing a significant integration service. Centuri’s MSA and bid contracts are characterized as either fixed-price contracts or unit-price contracts for revenue recognition purposes. The cost-to-cost input method is used to measure progress towards the satisfaction of a performance obligation for fixed-price contracts. Input methods result in the recognition of revenue based on the entity’s expended effort toward satisfaction of the performance obligation relative to the total expected effort to satisfy it in full. For unit-price contracts, an output method is used to measure progress towards satisfaction of a performance obligation (based on the completion of each unit that is required under the contract). Actual revenues and project costs can vary, sometimes substantially, from previous estimates due to changes in a variety of factors, including unforeseen circumstances. These factors, along with other risks inherent in performing fixed-price contracts may cause actual revenues and gross profit for a project to differ from previous estimates, and could result in reduced profitability or losses on projects. Changes in these factors may result in revisions to costs and earnings, the impacts for which are recognized in the period in which the changes are identified. Once identified, these types of conditions continue to be evaluated for each project throughout the project term, and ongoing revisions in management’s estimates of contract value, cost, and profit are recognized as necessary in the period determined. Centuri categorizes work performed under MSAs and bid contracts into three primary service types: gas construction, electrical construction, and other construction. Gas construction includes work involving previously existing gas pipelines and the installation of new pipelines or service lines. Electrical construction includes work involving installation and maintenance of transmission and distribution lines, including storm restoration services. Other construction includes all other work and can include industrial and water utility services. Contracts can have compensation/consideration that is variable. For MSAs, variable consideration is evaluated at the customer level as the terms creating variability in pricing are included within the MSA and are not specific to a work authorization. For multi-year MSAs, variable consideration items are typically determined for each year of the contract and not for the full contract term. For bid contracts, variable consideration is evaluated at the individual contract level. The expected value method or most likely amount method is used based on the nature of the variable consideration. Types of variable consideration include liquidated damages, delay penalties, performance incentives, safety bonuses, payment discounts, and volume rebates. Centuri will typically estimate variable consideration and adjust financial information, as necessary. Change orders involve the modification in scope, price, or both to the current contract, requiring approval by both parties. The existing terms of the contract continue to be accounted for under the current contract until such time as a change order is approved. Once approved, the change order is either treated as a separate contract or as part of the existing contract, as appropriate under the circumstances. When the scope is agreed upon in the change order but not the price, Centuri estimates the change to the transaction price. The following tables display Centuri’s revenue from contracts with customers disaggregated by service type and contract type: December 31, (Thousands of dollars) 2023 2022 2021 Service Types: Gas infrastructure services $ 1,549,152 $ 1,630,911 $ 1,511,326 Electric power infrastructure services 1,307,033 1,095,350 581,939 Other 43,091 34,066 65,396 Total Utility infrastructure services revenues $ 2,899,276 $ 2,760,327 $ 2,158,661 December 31, (Thousands of dollars) 2023 2022 2021 Contract Types: Master services agreement $ 2,388,688 $ 2,342,220 $ 1,652,978 Bid contract 510,588 418,107 505,683 Total Utility infrastructure services revenues $ 2,899,276 $ 2,760,327 $ 2,158,661 Unit-price contracts $ 1,570,356 $ 1,608,131 $ 1,369,082 Fixed-price contracts 673,605 498,039 267,742 Time and materials contracts 655,315 654,157 521,837 Total Utility infrastructure services revenues $ 2,899,276 $ 2,760,327 $ 2,158,661 The following table provides information about contracts receivable and revenue earned on contracts in progress in excess of billings (contract assets), both of which are included within Accounts receivable, net of allowances, as well as amounts billed in excess of revenue earned on contracts (contract liabilities) at Centuri, which are included in Other current liabilities as of December 31, 2023 and 2022 on the Company’s Consolidated Balance Sheets: December 31, (Thousands of dollars) 2023 2022 Contracts receivable, net $ 347,454 $ 394,022 Revenue earned on contracts in progress in excess of billings 269,808 238,059 Amounts billed in excess of revenue earned on contracts 43,694 35,769 The revenue earned on contracts in progress in excess of billings primarily relates to Centuri’s rights to consideration for work completed but not billed and/or approved at the reporting date. These contract assets are transferred to contracts receivable when the rights become unconditional, and increased $31.7 million during 2023 due primarily to continued revenue growth. These contract assets are recoverable from Centuri’s customers based upon various measures of performance, including achievement of certain milestones, completion of specified units or completion of a contract. In addition, many of Centuri’s time and materials arrangements are billed in arrears pursuant to contract terms that are standard within the industry, resulting in contract assets and/or unbilled receivables being recorded, as revenue is recognized in advance of billings. Due to the lag in invoicing associated with contractual provisions (or other economic or market conditions that may impact a customer’s business), Centuri’s ability to bill and subsequently collect amounts due may be impacted. These changes may result in the need to record an estimated valuation allowance to adjust contract asset balances to their net realizable value. The amounts billed in excess of revenue earned primarily relate to the advance consideration received from customers for which work has not yet been completed. The change in this contract liability balance from December 31, 2022 to December 31, 2023 increased $7.9 million due to amounts received for services not yet performed, net of revenue recognized. For contracts that have an original duration of one year or less, Centuri does not consider/compute an interest component based on the time value of money. Further, because of the short duration of these contracts, the Company has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize the revenue. As of December 31, 2023, Centuri has 56 contracts with an original duration of more than one year. The aggregate amount of the transaction price allocated to the unsatisfied performance obligations of these contracts as of December 31, 2023 was $292.9 million . Centuri expects to recognize the remaining performance obligations over approximately the next two years ; however, the timing of that recognition is largely within the control of the customer, including when the necessary equipment and materials required to complete the work will be provided by the customer. Utility infrastructure services contracts receivable consists of the following: December 31, (Thousands of dollars) 2023 2022 Billed on completed contracts and contracts in progress $ 348,021 $ 395,771 Other receivables 1,945 2,569 Contracts receivable, gross 349,966 398,340 Allowance for doubtful accounts (2,512) (4,318) Contracts receivable, net $ 347,454 $ 394,022 |
Receivables and Related Allowan
Receivables and Related Allowances | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Receivables and Related Allowances | Note 4 - Receivables and Related Allowances Business activity with respect to natural gas utility operations is conducted with customers located within the three-state region of Arizona, Nevada, and California. Southwest’s accounts receivable are short-term in nature, with billing due dates customarily not extending beyond one month, with customers’ credit worthiness assessed upon account creation by evaluation of other utility service or their credit file, and related payment history. Although Southwest seeks generally 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 where possible, some accounts are ultimately not collected. Customer accounts are subject to collection procedures that vary by jurisdiction (late fee assessment, notice requirements for disconnection of service, and procedures for actual disconnection and/or reestablishment of service). After disconnection of service, accounts are customarily written off approximately two months after disconnection if the account remains inactive. 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, consideration of current and expected future conditions, customer and rate composition, regulatory requirements, 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 (“UGCE”). Eligible amounts are deferred and collected through a surcharge in the ratemaking process. The California jurisdictions have a regulatory mechanism specific to residential customer uncollectible accounts (“RUBA”). This is a two-way balancing account that was permitted to be implemented to track amounts for future recovery; the mechanism is subject to a cap on annual disconnections/write-offs, above which uncollectible expense would nonetheless be incurred and recognized. Eligible amounts are deferred and collected through a surcharge in the ratemaking process. S outhwest continues to actively work with customers experiencing financial hardship by means of flexible payment options and partnering with assistance agencies. Additionally, management continues to monitor expected credit losses in light of COVID-19-related moratoriums for disconnections (and earlier year lifting thereof), local/regional inflation, the magnitude and age of outstanding receivables, economic trends, and others. As referenced above, certain residential disconnection protections were recently established in Southwest’s California jurisdictions, such as prohibiting credit deposits and fees for reconnection, and limiting disconnections/write-offs, among other things; management continues to monitor these conditions and any impacts. The allowance as of December 31, 2023 reflects the expected impacts on balances a s of that date, including consideration of customers’ current and future ability to pay amounts that are due. Utility infrastructure services accounts receivable are recorded at face amounts less an allowance for doubtful accounts. Centuri’s customers are generally investment-grade gas and electric utility companies for which Centuri has historically recognized an insignificant amount of write-offs. Centuri’s accounts receivable balances carry standard payment terms of up to 60 days. Centuri maintains an allowance that is estimated based on historical collection experience, current and estimated future economic and market conditions, and a review of the current status of each customer's accounts receivable balance. Account balances are monitored at least monthly, and are charged off against the allowance when management determines it is probable the balance will not be recovered. The table below contains information about Southwest’s gas utility customer accounts receivable balance (net of allowance) at December 31, 2023 and 2022: December 31, (Thousands of dollars) 2023 2022 Gas utility customer accounts receivable balance $ 263,337 $ 225,317 The following table represents the percentage of customers in each of Southwest’s three states at December 31, 2023, which was consistent with the prior year: Percent of customers by state: Arizona 54 % Nevada 37 % California 9 % Southwest activity in the allowance account for uncollectibles is summarized as follows: (Thousands of dollars) Allowance for Uncollectibles Balance, December 31, 2020 $ 4,334 Additions charged to expense 5,415 Accounts written off, less recoveries (6,490) Balance, December 31, 2021 3,259 Additions charged to expense 12,707 Accounts written off, less recoveries (11,136) Balance, December 31, 2022 4,830 Additions charged to expense 11,877 Accounts written off, less recoveries (10,612) Balance, December 31, 2023 $ 6,095 The table above does not give effect for amounts included in regulatory tracking mechanisms, including the UGCE in Nevada and the RUBA in California. At December 31, 2023, the utility infrastructure services segment (Centuri) had $617.3 million in combined customer accounts and contracts receivable. The allowance for doubtful accounts at Centuri wa s $2.5 million and $4.3 million as of December 31, 2023 and 2022, respectively. The allowance for uncollectibles and write-offs related to Centuri customers were insignificant for all periods prior to December 31, 2022. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Regulatory Assets and Liabilities | Note 5 - Regulatory Assets and Liabilities Southwest is subject to the regulation of the Arizona Corporation Commission, the Public Utilities Commission of Nevada, the California Public Utilities Commission, and the FERC. Accounting policies for 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, the related regulatory asset is required to be written off. Regulatory liabilities are recorded if it is probable that revenues will be reduced for amounts that will be refunded to customers through the ratemaking process. Management records regulatory assets and liabilities based on decisions of the commissions noted above, including the issuance of regulatory orders and precedents established by these commissions. Southwest has generally been successful in seeking recovery of regulatory assets, and regularly file rate cases or other administrative filings in the various jurisdictions, in some cases, to establish the basis for recovering regulatory assets reflected in accounting records. The following table represents existing regulatory assets and liabilities: December 31, (Thousands of dollars) 2023 2022 Regulatory assets: Accrued pension and other postretirement benefit costs (1) $ 309,794 $ 311,124 Deferred purchased gas costs (2) 552,885 450,120 Accrued purchased gas costs (3) — 207,368 Unamortized premium on reacquired debt (4) 13,080 14,707 Accrued absence time (5) 18,937 17,854 Margin, interest- and tax-tracking (6) 14,717 21,024 Other (10) 78,138 65,981 $ 987,551 $ 1,088,178 Regulatory liabilities: Accrued purchased gas costs (3) (87,579) — Accumulated removal costs (7) (458,000) (445,000) Unamortized gain on reacquired debt (8) (6,036) (6,572) Regulatory excess deferred/other taxes and gross-up (9) (394,411) (424,921) Margin, interest- and property tax-tracking (6) (57,344) (10,920) Other (10) (2,490) (5,393) Net regulatory assets (liabilities) $ (18,309) $ 195,372 (1) Included in Deferred charges and other assets on the Consolidated Balance Sheets. Recovery period is greater than five years. (See Note 11 - Pension and Other Postretirement Benefits ). (2) Balance recovered or refunded on an ongoing basis with interest. (3) Balance recovered or refunded on an ongoing basis. Asset balance is included in Prepaid and other current assets and the liability balance is included in Other current liabilities on the Consolidated Balance Sheets. (4) Included in Deferred charges and other assets on the Consolidated Balance Sheets. Recovered over life of debt instruments. (5) Regulatory recovery occurs generally on a one-year lag basis through the labor loading process. Included in Prepaid and other current assets on the Consolidated Balance Sheets. (6) Margin tracking/decoupling mechanisms are alternative revenue programs; revenue associated with under-collections (for the difference between authorized margin levels and amounts billed to customers through rates currently) is recognized as revenue so long as recovery is expected to take place within 24 months. Total category asset balances are included in Prepaid and other current assets on the Consolidated Balance Sheets. Total category liability balances are included in Other current liabilities and Other deferred credits and other long-term liabilities. (7) Included in Accumulated removal costs on the Consolidated Balance Sheets; a component of ongoing depreciation rates as part of margin rates overall and of benchmarks under trackers as part of general rate cases. (8) Included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. Amortized over life of debt instruments. (9) Includes remeasurement/reduction of the net accumulated deferred income tax liability from U.S. tax reform. The reduction (excess accumulated deferred taxes, or “EADIT”) became a regulatory liability with tax gross-up. EADIT reduces rate base, and is expected to be returned to utility customers in accordance with IRS and regulatory requirements. Included generally in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets, except for $28.5 million in 2023 which is in Other current liabilities. Amount also includes the difference in current taxes required to be returned to customers and a separate $3.7 million gross-up related to contributions in aid of construction. (10) The following tables detail the components of Other regulatory assets and liabilities. Other regulatory assets are included in either Prepaid and other current assets or Deferred charges and other assets on the Consolidated Balance Sheets (as indicated). Recovery periods vary. Other regulatory liabilities are included in either Other current liabilities or Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets (as indicated). December 31, (Thousands of dollars) 2023 2022 Other Regulatory Assets: State mandated public purpose programs (including low income and conservation programs) (a) (f) $ 21,290 $ 18,693 Infrastructure replacement programs and similar (b) (f) 16,491 8,533 Environmental compliance programs (c) (f) 4,005 5,803 Pension tracking mechanism (d) 16,167 13,098 Other (e) 20,185 19,854 $ 78,138 $ 65,981 a) Included in Prepaid and other current assets on the Consolidated Balance Sheets. b) In 2023, approximately $171,000 of these balances included in Prepaid and other current assets and $16.3 million in Deferred charges and other assets on the Consolidated Balance Sheets. In 2022, approximately $930,000 included in Prepaid and other current assets and $7.6 million included in Deferred charges and other assets on the Consolidated Balance Sheets. c) In 2023, approxim ately $3 million of these balances included in Prepaid and other current assets and $967,000 in Deferred charges and other assets on the Consolidated Balance Sheets. In 2022, approximately $5 million included in Prepaid and other current assets and $825,000 included in Deferred charges and other assets on the Consolidated Balance Sheets. d) Included in Deferred charges and other assets on the Consolidated Balance Sheets. e) In 2023, approximately $9 million inc luded in Prepaid and other current assets and $11.2 million included in Deferred charges and other assets on the Consolidated Balance Sheets. In 2022, $6.4 million included in Prepaid and other current assets and $13.4 million included in Deferred charges and other assets on the Consolidated Balance Sheets. f) Balance recovered or refunded on an ongoing basis, generally with interest. December 31, (Thousands of dollars) 2023 2022 Other Regulatory Liabilities: State mandated public purpose programs (including low income and conservation programs) (g) (i) $ (254) $ (1,567) Other (h) (i) (2,236) (3,826) $ (2,490) $ (5,393) g) Included in Other current liabilities on the Consolidated Balance Sheets. h) In 2023, included in Other current liabilities, excep t $146,000 , w hich is included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. In 2022, included in Other current liabilities, excep t $823,000 w hich is included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. i) Balance typically recovered or refunded on an ongoing basis, generally with interest. |
Other Comprehensive Income and
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") | Note 6 - Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") The following information provides insight into amounts impacting the Company’s and Southwest’s Other comprehensive income (loss), both before and after-tax impacts, within the Consolidated Statements of Comprehensive Income, which also impact Accumulated other comprehensive income (“AOCI”) in the Consolidated Balance Sheets and the Consolidated Statements of Equity. Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss): December 31, 2023 2022 2021 (Thousands of dollars) Before- Tax Amount Tax (Expense) or Benefit (1) Net-of- Tax Amount Before- Tax Amount Tax (Expense) or Benefit (1) Net-of- Tax Amount Before- Tax Amount Tax (Expense) or Benefit (1) Net-of- Tax Amount Defined benefit pension plans: Net actuarial gain/(loss) $ (3,188) $ 765 $ (2,423) $ 4,079 $ (980) $ 3,099 $ 59,176 $ (14,202) $ 44,974 Amortization of prior service cost 175 (42) 133 175 (42) 133 959 (230) 729 Amortization of net actuarial (gain)/loss 1,333 (319) 1,014 34,818 (8,357) 26,461 44,597 (10,703) 33,894 Regulatory adjustment (1,330) 319 (1,011) (28,232) 6,775 (21,457) (88,194) 21,167 (67,027) Pension plans other comprehensive income (loss) (3,010) 723 (2,287) 10,840 (2,604) 8,236 16,538 (3,968) 12,570 FSIRS (designated hedging activities): Amounts reclassified into net income — — — 545 (129) 416 2,174 (522) 1,652 FSIRS other comprehensive income (loss) — — — 545 (129) 416 2,174 (522) 1,652 Total other comprehensive income (loss) –Southwest Gas Corporation (3,010) 723 (2,287) 11,385 (2,733) 8,652 18,712 (4,490) 14,222 Foreign currency translation adjustments: Translation adjustments 2,742 — 2,742 (6,133) — (6,133) 20 — 20 Foreign currency other comprehensive income (loss) 2,742 — 2,742 (6,133) — (6,133) 20 — 20 Total other comprehensive income (loss) – Southwest Gas Holdings, Inc. $ (268) $ 723 $ 455 $ 5,252 $ (2,733) $ 2,519 $ 18,732 $ (4,490) $ 14,242 (1) Tax amounts are calculated using a 24% rate. With regard to foreign currency translation adjustments, the Company has elected to indefinitely reinvest the earnings of Centuri’s Canadian subsidiaries in Canada, thus preventing deferred taxes on such earnings. As a result of this assertion, and no repatriation of earnings anticipated, the Company is not recognizing a tax effect or presenting a tax expense or benefit for currency translation adjustments in Other comprehensive income (loss). The following table represents a rollforward of AOCI, presented on the Company’s Consolidated Balance Sheets and its Consolidated Statements of Equity: Defined Benefit Plans Foreign Currency Items (Thousands of dollars) Before-Tax Tax (Expense) Benefit (3) After-Tax Before- Tax After-Tax AOCI Beginning Balance AOCI December 31, 2022 $ (50,342) $ 12,081 $ (38,261) $ (5,981) $ — $ (5,981) $ (44,242) Net actuarial gain/(loss) (3,188) 765 (2,423) — — — (2,423) Translation adjustments — — — 2,742 — 2,742 2,742 Amortization of prior service cost (1) 175 (42) 133 — — — 133 Amortization of net actuarial loss (1) 1,333 (319) 1,014 — — — 1,014 Regulatory adjustment (2) (1,330) 319 (1,011) — — (1,011) Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc. (3,010) 723 (2,287) 2,742 — 2,742 455 Ending Balance AOCI December 31, 2023 $ (53,352) $ 12,804 $ (40,548) $ (3,239) $ — $ (3,239) $ (43,787) (1) These AOCI components are included in the computation of net periodic benefit cost (see Note 11 - Pension and Other Postretirement Benefits for additional details). (2) The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included in Deferred charges and other assets on the Company’s Consolidated Balance Sheets). (3) Tax amounts are calculated using a 24% rate. The following table represents a rollforward of AOCI, presented on Southwest’s Consolidated Balance Sheets: Defined Benefit Plans (Thousands of dollars) Before-Tax Tax (Expense) Benefit (6) After- Beginning Balance AOCI December 31, 2022 $ (50,342) $ 12,081 $ (38,261) Net actuarial gain/(loss) (3,188) 765 (2,423) Amortization of prior service cost (4) 175 (42) 133 Amortization of net actuarial loss (4) 1,333 (319) 1,014 Regulatory adjustment (5) (1,330) 319 (1,011) Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation (3,010) 723 (2,287) Ending Balance AOCI December 31, 2023 $ (53,352) $ 12,804 $ (40,548) (4) These AOCI components are included in the computation of net periodic benefit cost (see Note 11 - Pension and Other Postretirement Benefits for additional details). (5) The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included in Deferred charges and other assets on Southwest’s Consolidated Balance Sheets). (6) Tax amounts are calculated using a 24% rate. The following table represents amounts (before income tax impacts) included in AOCI (in the tables above), that have not yet been recognized in net periodic benefit cost: December 31, (Thousands of dollars) 2023 2022 Net actuarial loss $ (361,968) $ (360,113) Prior service cost (1,178) (1,353) Less: amount recognized in regulatory assets 309,794 311,124 Recognized in AOCI $ (53,352) $ (50,342) See Note 11 - Pension and Other Postretirement Benefits for more information on the defined benefit pension plans. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Common Stock | Note 7 - Common Stock Shares of the Company’s common stock are publicly traded on the New York Stock Exchange, under the ticker symbol “SWX.” Share-based compensation related to Southwest and Centuri is based on awards to be issued in shares of Southwest Gas Holdings, Inc. In December 2020, the Company and Southwest jointly filed with the SEC an automatic shelf registration statement (File No. 333-251074), or the “Prior Shelf Registration,” which became effective upon filing. The Prior Shelf Registration expired in December 2023. In contemplation of this, in November 2023, the Company and Southwest jointly filed an automatic shelf registration statement (File No. 333-275774), or the “2023 Shelf Registration,” which became effective upon filing and includes a prospectus detailing the Company’s ability to offer and sell, from time to time in amounts at prices and on terms that will be determined at the time of such offering, any combination of common stock, preferred stock, debt securities (which may or may not be guaranteed by one or more of its directly or indirectly wholly owned subsidiaries if indicated in the relevant prospectus supplement), guarantees of debt securities issued by Southwest, depository shares, warrants to purchase common stock, preferred stock or depository shares issued by the Company or debt securities issued by the Company or Southwest, units and rights. Additionally as part of the 2023 Shelf Registration, Southwest may offer and sell, from time to time in amounts at prices and on terms that will be determined at the time of such offering, any combination of debt securities (which may or may not be guaranteed by one or more of its directly or indirectly wholly owned subsidiaries if indicated in the relevant prospectus supplement) and guarantees of debt securities issued by the Company or by one or more of its directly or indirectly wholly owned subsidiaries if indicated in the relevant prospectus supplement. On April 8, 2021, the Company entered into a Sales Agency Agreement between the Company and BNY Mellon Capital Markets, LLC and J.P. Morgan Securities LLC (the “Equity Shelf Program”) for the offer and sale of up to $500 million of common stock from time to time in an at-the-market offering program. There was no activity under the Equity Shelf Program during the year ended December 31, 2023. The following table provides the life-to-date activity under that program through December 31, 2023, and all shares reported were issued pursuant to the Prior Shelf Registration: Gross proceeds $ 158,180,343 Less: agent commissions (1,581,803) Net proceeds $ 156,598,540 Number of shares sold 2,302,407 Weighted average price per share $ 68.70 Upon the expiration of the Prior Shelf Registration, the Equity Shelf Program was terminated. The Company intends to enter into a similar program during 2024. In March 2023, the Company issued, through a separate prospectus supplement under the Prior Shelf Registration, an aggregate of 4.1 million shares of common stock, at an underwritten public offering price of $60.12 per share, resulting in net proceeds to the Company of $238.4 million, net of an underwriter’s discount of $8.3 million and estimated expenses of the offering. Approximately $140 million (2.3 million shares) of the offering was purchased by certain funds affiliated with Carl C. Icahn, a significant stockholder beneficially owning more that 15% of the outstanding stock of the Company as of December 31, 2023. The Company used the net proceeds to repay outstanding amounts under the Company’s credit facility, with the remaining proceeds used to pay off residual amounts outstanding under the loan entered into in November 2021 in connection with the acquisition of MountainWest, and otherwise, for working capital and general corporate purposes. During 2023, the Company issued approximately 68,000 shares of common stock through the Restricted Stock/Unit Plan and Omnibus Incentive Plan. Additionally during 2023, the Company issued 264,000 shares of common stock through the Dividend Reinvestment and Stock Purchase Plan, raising proceeds of approximately $15.2 million. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 8 - Debt Long-Term Debt Long-term debt is recognized in the Company’s and Southwest’s Consolidated Balance Sheets generally at the carrying value of the obligations outstanding. Details surrounding the fair value and individual carrying values of instruments are provided in the table that follows. December 31, 2023 2022 Carrying Amount Fair Carrying Amount Fair (Thousands of dollars) Southwest Gas Corporation: Debentures: 8% Series, due 2026 $ 75,000 $ 79,502 $ 75,000 $ 80,027 Medium-term notes, 7.92% series, due 2027 25,000 26,883 25,000 26,840 Medium-term notes, 6.76% series, due 2027 7,500 7,800 7,500 7,662 Notes, 5.8%, due 2027 300,000 309,180 300,000 305,913 Notes, 3.7%, due 2028 300,000 285,300 300,000 275,043 Notes, 5.45%, due 2028 300,000 307,170 — — Notes, 2.2%, due 2030 450,000 382,635 450,000 353,763 Notes, 4.05%, due 2032 600,000 563,940 600,000 527,052 Notes, 6.1%, due 2041 125,000 126,238 125,000 113,184 Notes, 4.875%, due 2043 250,000 214,050 250,000 195,703 Notes, 3.8%, due 2046 300,000 225,240 300,000 209,169 Notes, 4.15%, due 2049 300,000 236,370 300,000 218,712 Notes, 3.18%, due 2051 300,000 197,760 300,000 185,523 Unamortized discount and debt issuance costs (29,594) (29,471) 3,302,906 3,003,029 Revolving credit facility and commercial paper — — 50,000 50,000 Industrial development revenue bonds: Tax-exempt Series A, due 2028 50,000 50,000 50,000 50,000 2003 Series A, due 2038 50,000 50,000 50,000 50,000 2008 Series A, due 2038 50,000 50,000 50,000 50,000 2009 Series A, due 2039 50,000 50,000 50,000 50,000 Unamortized discount and debt issuance costs (1,363) (1,733) 198,637 198,267 Less: current maturities — — Southwest Gas Corporation total long-term debt, less current maturities $ 3,501,543 $ 3,251,296 Southwest Gas Holdings, Inc.: Centuri secured term loan facility $ 994,238 $ 996,723 $ 1,008,550 $ 995,852 Centuri secured revolving credit facility 77,121 77,205 81,955 82,315 Other debt obligations 96,599 92,209 126,844 118,314 Unamortized discount and debt issuance costs (17,111) (20,789) Less: current maturities (42,552) (44,557) Southwest Gas Holdings, Inc. total long-term debt, less current maturities $ 4,609,838 $ 4,403,299 The fair values of Southwest's and the Company’s revolving credit facilities and Southwest’s Industrial Development Revenue Bonds (“IDRBs”) are categorized as Level 1 as their interest rates reset frequently. The fair values of Southwest’s debentures (which include senior and medium-term notes) and Centuri's term loan facility and unsecured senior notes were determined utilizing a market-based valuation approach, where fair values are determined based on evaluated pricing data, and as such are categorized as Level 2 in the hierarchy. Southwest has a $400 million credit facility that is scheduled to expire in April 2025 . Southwest designates $150 million of associated capacity as long-term debt and the remaining $250 million for working capital purposes. Interest rates for the credit facility are calculated at either the Secured Overnight Financing Rate (“SOFR”) or an “alternate base rate,” plus in each case an applicable margin that is determined based on Southwest’s senior unsecured debt rating. At December 31, 2023, the applicable margin ranged from 0.750% to 1.500% for loans bearing interest with reference to SOFR and from 0.000% to 0.500% for loans bearing interest with reference to the alternative base rate. At December 31, 2023, the applicable margin was 1.125% for loans with reference to SOFR and 0.125% for loans bearing interest with reference to the alternative base rate. Southwest is also required to pay a commitment fee, ranging from 0.075% to 0.200% per annum, on the unfunded portion of the commitments, which was not significant for the year ended December 31, 2023. The credit facility contains a financial covenant requiring Southwest to maintain a ratio of funded debt to total capitalization not to exceed 0.70 to 1.00 as of the end of any quarter of any fiscal year. At December 31, 2023, no borrowings were outstanding on the long-term portion (including under the commercial paper program discussed below), nor under the short-term portion of the facility. Southwest has a $50 million commercial paper program. Issuances under the commercial paper program are supported by Southwest’s current revolving credit facility and, therefore, do not represent additional borrowing capacity. Borrowings under the commercial paper program, if any, are designated as long-term debt. Interest rates for the program are calculated at the then current commercial paper rate. At December 31, 2023, as noted above, no borrowings were outstanding under the commercial paper program. In March 2023, Southwest issued $300 million aggregate principal amount of 5.45% Senior Notes. The notes will mature in March 2028. Southwest used the net proceeds to repay amounts outstanding under its credit facility and the remainder for general corporate purposes. Centuri has a $1.545 billion secured revolving credit and term loan multi-currency facility. Amounts can be borrowed in either Canadian or U.S. dollars. The revolving credit facility matures on August 27, 2026 and the term loan facility matures on August 27, 2028. The capacity of the line of credit portion of the facility is $400 million; related amounts borrowed and repaid are available to be re-borrowed. The term loan portion of the facility has a limit of $1.145 billion. The obligations under the credit agreement are secured by present and future ownership interests in substantially all direct and indirect subsidiaries of Centuri, substantially all of the tangible and intangible personal property of each borrower, certain of their direct and indirect subsidiaries, and all products, profits, and proceeds of the foregoing. Centuri’s assets securing the facility at December 31, 2023 totaled $2.5 billion. At December 31, 2023, $1.071 billion in borrowings were outstanding under Centuri’s combined secured revolving credit and term loan facility. The applicable margin for the revolving credit facility ranges from 1.0% to 2.5% for SOFR loans and from 0.0% to 1.5% for Canadian Dealer Offered Rate and “base rate” loans, depending on Centuri’s total net leverage ratio. The applicable margin for the term loan facility is 1.50% for base rate loans and 2.50% for SOFR loans. Centuri is also required to pay a commitment fee on the unused portion of the commitments. The commitment fee ranges from 0.15% to 0.35% per annum, which was not significant for the year ended December 31, 2023 . The credit agreement contains certain customary representations and warranties, affirmative and negative covenants, and events of default. There are no financial covenants related to the term loan facility. On November 13, 2023, Centuri amended the financial covenants of its revolving credit facility to decrease the minimum interest coverage ratio during the fiscal quarters ending March 31, 2024 through December 31, 2024 to a ratio of 2.00 to 1.00; the minimum interest coverage ratio of 2.50 to 1.00 for fiscal quarters ending March 31, 2025 and thereafter remained unchanged. The amendment also increased the maximum net leverage ratio financial covenant for the fiscal quarters ending March 31, 2024 through September 30, 2024 to a ratio of 5.50 to 1.00, for the fiscal quarter ending December 31, 2024 to a ratio of 5.00 to 1.00, and to a ratio of 4.00 to 1.00 from March 31, 2025 and thereafter. Additionally, the amendment provided that, in the event that a “Qualified IPO” (as defined in the amendment) is consummated prior to March 31, 2025, the maximum net leverage ratio financial covenant will be reduced based on the amount of net proceeds received from such Qualified IPO. The terms of the Centuri credit facility otherwise remain unchanged. All amounts outstanding under Centuri’s secured revolving credit and term loan facility are considered long-term borrowings. The effective interest rate on this facility was 8.0% at December 31, 2023. The effective interest rates on Southwest’s variable-rate IDRBs are included in the table below: December 31, 2023 2022 2003 Series A 5.03 % 4.68 % 2008 Series A 4.89 % 4.84 % 2009 Series A 4.65 % 4.67 % Tax-exempt Series A 4.73 % 4.30 % In Nevada, interest fluctuations due to changing interest rates on Southwest’s 2003 Series A, 2008 Series A, and 2009 Series A variable-rate IDRBs are tracked and recovered from customers through a variable interest expense recovery mechanism. None of Southwest’s debt instruments have credit triggers or other clauses that result in default if bond ratings are lowered by rating agencies. Interest and fees on certain debt instruments are subject to adjustment depending on Southwest’s bond ratings. Certain debt instruments are subject to a leverage ratio cap and the 6.1% Notes due 2041 are also subject to a minimum net worth requirement . At December 31, 2023, Southwest was in compliance with all of its covenants. Un der the most restrictive of the financial covenants, approximately $3.9 billion in additional debt could be issued while still meeting the leverage ratio requirement. Relating to the minimum net worth requirement, as of December 31, 2023, there is at least $2.6 billion of cushion in equity. No specific dividend restrictions exist under the collective covenants. None of the debt instruments contain material adverse change clauses. Certain Centuri debt instruments have leverage ratio caps and fixed charge ratio coverag e requir ements. At December 31, 2023, Centuri was in compliance with all of its covenants. Under the most restrictive of the covenants, Centuri could issue over $108 million in additional debt and meet the leverage ratio requirement. Centuri has at least $15 million of cushion relating to the minimum fixed charge ratio coverage requirement. Centuri’s covenants limit it s ability to provide cash dividends to Southwest Gas Holdings, Inc., its parent. The dividend restriction is equal to a calculated available amount generally defined as 50% of its rolling twelve-month consolidated net income adjusted for certain items, such as parent contribution inflows, Linetec redeemable noncontrolling interest payments, or dividend payments, among other adjustments, as applicable. Under these restrictions and the financial covenants of the amended revolving credit facility, Centuri’s ability to pay dividends to Southwest Gas Holdings, Inc. is limited. However, such dividends are not customarily relied upon in order for Southwest Gas Holdings, Inc. to satisfy dividends declared for its stockholders. Estimated maturities of long-term debt for the next five years are: (Thousands of dollars) 2024 2025 2026 2027 2028 Total Southwest Gas Corporation: Debentures $ — $ — $ 75,000 $ 332,500 $ 650,000 $ 1,057,500 Revolving credit facility and commercial paper — — — — — — Total — — 75,000 332,500 650,000 1,057,500 Southwest Gas Holdings, Inc.: Centuri secured term loan facility 11,450 11,450 11,450 11,450 948,438 994,238 Centuri secured revolving credit facility — — 77,121 — — 77,121 Other debt obligations 31,101 29,554 28,651 7,293 — 96,599 Total $ 42,551 $ 41,004 $ 192,222 $ 351,243 $ 1,598,438 $ 2,225,458 Short-Term Debt Southwest Gas Holdings, Inc. has a $300 million credit facility that is scheduled to expire in December 2026 and is primarily used for short-term financing needs. Interest rates for this facility are calculated at either SOFR or the “alternate base rate ,” plus in each case an applicable margin that is determined based on the Company’s senior unsecured debt rating. At December 31, 2023, the applicable margin is 1.250% for loans bearing interest with reference to SOFR and 0.250% for loans bearing interest with reference to the alternative base rate. The commitment fee rates, terms, and covenants, noted above for Southwest, are also applicable to Southwest Gas Holdings, Inc. in its amended credit facility, including the noted ratio of funded debt to total capitalization as of the end of any quarter of any fiscal year. The commitment fee under this credit facility was not significant for the year ended December 31, 2023. There was $78.5 million and $173 million outstanding under this facility with a weighted average interest rate of 6.638% and 5.588% at December 31, 2023 and 2022, respectively. In March 2022, Southwest amended its $250 million Term Loan (the “March 2021 Term Loan”), extending the maturity date to March 21, 2023 and replacing LIBOR interest rate benchmarks with SOFR interest rate benchmarks. The initial proceeds were used to fund the increased cost of natural gas supply during the month of February 2021, caused by extreme weather conditions in the central U.S. During the first quarter of 2023, the March 2021 Term Loan was repaid in full by use of Southwest’s credit facility. On September 26, 2022, Southwest Gas Holdings, Inc. entered into Amendment No. 1 to the 364-day Term Loan Credit Agreement, initially borrowed to fund the acquisition of the equity interests in MountainWest, of which $1.147 billion was outstanding as of December 31, 2022. The Credit Agreement initially provided for a $1.6 billion delayed-draw term loan (the “Term Loan Facility”). In connection with the close of the MountainWest sale on February 14, 2023, $1.075 billion of the proceeds were used to pay down the Term Loan Facility. During the first quarter of 2023, the Company paid down the remaining balance of the Term Loan Facility of approximately $72 million. In January 2023, Southwest entered into a 364-day $450 million term loan agreement. Southwest initially used the proceeds to fund higher than expected natural gas costs for the November 2022 through March 2023 winter period, caused by numerous market forces, including historically low storage levels, unexpected upstream pipeline maintenance events, and cold weather conditions across the western region. As indicated below, the term loan was repaid in full in April 2023, following an equity contribution from Southwest Gas Holdings, Inc. In April 2023, Southwest Gas Holdings, Inc. entered into a $550 million Term Loan Credit Agreement (the “Term Loan”) that matures in October 2024. Interest rates for the Term Loan are calculated, at the Company’s option, at either SOFR plus an adjustment of 0.100% or the “alternate base rate,” plus in each case an applicable margin. Loans bearing interest with reference to SOFR have an applicable margin of 1.300% and loans bearing interest with reference to the alternate base rate have an applicable margin of 0.300%. SOFR is calculated with a floor of 0.000% and the alternative base rate is calculated with a floor of 1.000%. Southwest Gas Holdings, Inc. utilized a majority of the proceeds to make an equity contribution to Southwest. On April 17, 2023, Southwest utilized the equity contribution to repay, in full, amounts outstanding under its then existing $450 million 364 -day term loan, with the remainder of the equity contribution used for working capital and general corporate purposes. As indicated above, under Southwest’s $400 million credit facility, $250 million has been designated by management for working capital purposes. However, Southwest had no short-term borrowings outstanding a t December 31, 2023 and 2022. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Note 9 - Share-Based Compensation At December 31, 2023, the following share-based compensation plans existed at the Company: an omnibus incentive plan and a restricted stock/unit plan. The fair value of share grants is primarily based on the closing price of the Company’s stock on the date of grant. All share grants in 2023, including time-lapse restricted stock units and performance share units, occurred under the omnibus incentive plan. The table below shows total share-based plan compensation expense which was recognized in the Consolidated Statements of Income: Year Ended December 31, (Thousands of dollars) 2023 2022 2021 Share-based compensation plan expense, net of related tax benefits $ 5,147 $ 6,225 $ 5,747 Share-based compensation plan related tax benefits 1,625 1,966 1,815 Omnibus Incentive Plan The omnibus incentive plan is used to promote the long-term growth and profitability of the Company, including its subsidiaries, by providing directors, employees, and certain other individuals with incentives to increase stockholder value and otherwise contribute to the success of the Company. In addition, the plan enables the Company to attract, retain, and reward the best available persons for positions of responsibility. The omnibus incentive plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance share units, and other equity-based, as well as cash, awards. Employees, directors, and consultants who provide services to the Company or any subsidiary may be eligible under this plan. For grants under the omnibus incentive plan, directors continue to immediately vest in the shares upon grant but are provided the option to defer receipt of equity compensation until they leave the Board. Performance-based incentive opportunities under the omnibus plan were granted to all officers of Southwest in the form of performance shares and are based, depending on the officer, on consolidated earnings per share, utility net income, and utility return on equity, with an adjustment, where relevant, based on total shareholder return (“TSR”) compared to peer companies, and for all participants, measured over a three-year forward performance period. Like other restricted stock/unit programs, shares are restricted based on vesting, and in this case, further subject to future performance determinations against relevant benchmarks. Southwest recorded $1.1 million, $2.1 million, and $3.4 million of estimated compensation expense associated with these shares during 2023, 2022, and 2021, respectively. There is no accelerated vesting under the performance share program, but vesting in the ultimate award, if any, is based on the period of employment within the three-year forward vesting period. Restricted stock/units under the restricted stock/unit plan were previously granted to attract, motivate, retain, and reward key employees of the Company with an incentive to attain high levels of individual performance and improved financial performance. The legacy plan was also established to attract, motivate, and retain experienced and knowledgeable directors. Grants of restricted stock during 2023 and 2022 were granted under the omnibus incentive plan. All remaining shares under the legacy restricted stock/unit plan (in regard to employees) were issued during 2021; remaining unissued legacy program shares relate solely to directors, and such shares were immediately vested at the time of grant, with distribution to occur when service on the Board ends. No new grants are made under the legacy plan, as all future stock-based incentive compensation, including with regard to restricted stock, is granted under programs of the omnibus incentive plan, which for directors, with advance election, issuance may occur upon grant. Conversely, with regard to management, grants under the omnibus plan are of time-lapse character, with graded vesting (and issuance in the form of common stock) occurring (following grant), at the rate of 40% at the end of year one and 30% at the end of years two and three. Accelerated vesting occurs based on retirement eligibility. The following table summarizes the activity of the restricted stock/units programs as of December 31, 2023: (Thousands of shares) Performance Share Units Weighted-average grant date fair value Restricted Stock Units/Director Deferred Stock Units Weighted-average grant date fair value Nonvested/unissued at December 31, 2022 283 $ 68.00 177 $ 58.50 Granted 167 62.78 80 62.83 Dividends 7 — 9 — Forfeited or expired (71) 71.65 — — Vested and issued (1) (35) 73.41 (58) 63.45 Nonvested/unissued at December 31, 2023 351 $ 62.95 208 $ 56.29 (1) Includes shares for retiree payouts and those converted for taxes. The weighted average grant date fair value of both performance share units and restricted stock/units granted in 2022 and 2021 wa s $66.11 and $65.38, respectively. As of December 31, 2023, total compensation cost related to all unvested omnibus shares not yet recognized is $12.3 million , which is expected to be recognized over a weighted average period of 2.1 years . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 - Commitments and Contingencies The Company and Southwest are defendants in miscellaneous legal proceedings. They are also parties to various regulatory proceedings. The ultimate dispositions of these proceedings are not presently determinable; however, it is the opinion of management that no litigation or regulatory proceedings to which the Company and Southwest are currently subject will have a material adverse impact on their financial position, results of operations, or cash flows. The Company maintains excess liability insurance that covers Southwest for various risks associated with the operation of the natural gas pipelines and facilities. In connection with these liability insurance policies, Southwest is responsible for an initial deductible or self-insured retention a mount per incident, after which the insurance carriers would be responsible for amounts up to the policy limits. For the policy period of August 2023 to July 2024, these liability insurance policies require Southwest, as applicable, to be responsible for the first $1 million (self-insured retention) of each incident plus a supplemental retention aggregate of $4 million in the policy year. When amounts are expected to be incurred above these amounts, subject to insurance carrier indemnity, a liability is recognized for the additional amount, in addition to a receivable, associated with amounts expected to be indemnified by the insurance carrier amounts, without impact to earnings. Centuri maintains liability insurance for various risks associated with its operations. In connection with these liability insurance policies, Centuri is responsible for an initial deductible or self-insured retention amount per occurrence, after which the insurance carriers would be responsible for amounts up to the policy limits. For the polic y year May 2023 to April 2024, Centuri is responsible for the first $750,000 (self-insured retention) per occurrence under these liability insurance policies. Through an assessment process of commitments and contingencies of any kind, the Company and Southwest may determine that certa in 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 and Southwest will make an accrual, as necessary. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Note 11 - Pension and Other Postretirement Benefits Southwest Gas Corporation Employees’ Investment Plan An Employees’ Investment Plan (“EIP”) is offered to eligible employees of Southwest through deduction of a percentage of base compensation, subject to Internal Revenue Service (“IRS”) limitations. The EIP provides for purchases of various mutual fund investments and Company common stock. For employees hired on or before December 31, 2021, one-half of amounts deferred are matched, up to a maximum matching contribution of 3.5% of an employee’s annual compensation. Employees hired on or after January 1, 2022 are eligible for non-elective employer contributions of 3% plus a matching contribution (dollar-for-dollar) up to 7% of eligible compensation. Officers hired after January 1, 2022 are eligible for non-elective and matching contributions. Contributions to the plan by Southwest were $8.3 million , $6.9 million, and $6.1 million for 2023, 2022, and 2021, respectively. Deferred Compensation Plan A deferred compensation plan is offered to all officers of Southwest and a separate deferred compensation plan is offered to members of the Company’s Board of Directors. The plans provide the opportunity to defer up to 100% of annual cash compensation. One-half of amounts deferred by officers are matched, up to a maximum matching contribution of 3.5% of an officer’s annual base salary. Upon retirement, payments of compensation deferred, plus interest, are made in equal monthly installments over 10, 15, or 20 years, as elected by the participant. Directors have an additional option to receive such payments over a five-year period. Deferred compensation earns interest at a rate determined each January. The interest rate equals 150% of Moody’s Seasoned Corporate Bond Rate Index. Pension and Postretirement Plans A noncontributory qualified retirement plan with defined benefits covering substantially all Southwest employees hired on or before December 31, 2021 is available, in addition to a separate unfunded supplemental executive retirement plan (“SERP”), which is limited to Southwest’s officers. Postretirement benefits other than pensions (“PBOP”) are provided to qualified retirees for limited benefits related to health care, dental, vision and life insuran ce, some of which were subject to earlier “sunset” dates. The defined benefit qualified retirement plan, SERP, and PBOP are not available to Southwest employees hired on or after January 1, 2022. As noted above, employees hired on or after that date, are eligible for enhanced contributions to the EIP. The overfunded or underfunded positions of defined benefit postretirement plans, including pension plans, are recognized in the Consolidated Balance Sheets. Any actuarial gains and losses, prior service costs, and transition assets or obligations are recognized in Accumulated other comprehensive income (loss) under Stockholders’ equity, net of tax, until they are amortized as a component of net periodic benefit cost. A regulatory asset has been established for the portion of the total amounts otherwise chargeable to Accumulated other comprehensive income that are expected to be recovered through rates in future periods. Changes in actuarial gains and losses and prior service costs pertaining to the regulatory asset will be recognized as an adjustment to the regulatory asset account as these amounts are amortized and recognized as components of net periodic pension costs each year. The qualified retirement plan invests the majority of its plan assets in common collective trusts, which include a well-diversified portfolio of domestic and international equity securities and fixed income securities, and are managed by a professional investment manager appointed by Southwest. The investment manager has full discretionary authority to direct the investment of plan assets held in trust within the specific guidelines prescribed by Southwest through the plan’s investment policy statement. Southwest previously implemented a liability driven investment (“LDI”) strategy for part of the portfolio, a form of investing designed to better match the movement in pension plan assets with the impact of interest rate changes and inflation assumption changes on the pension plan liability. The implementation of the LDI strategy was intended to be phased in over time by using a glide path. The glide path was designed to increase the allocation of the plan’s assets to fixed income securities, as the funded status of the plan increases, in order to more closely match the duration of the plan assets to that of the plan liability. During the fourth quarter of 2023, the asset mix was adapted in accordance with an updated policy statement to be primarily balanced with approximately 50% equities and 50% fixed income investments. Beginning in 2024, a treasury futures overlay was added as part of the LDI strategy to manage interest rate fluctuations with the goal of maintaining an approximate 90% hedge and funded ratio; as of the end of 2023, the pension plan was approximately 94% funded. While the overlay is intended for these purposes, there is no guarantee that these intentions will be achieved. Pension plan assets are held in a Master Trust. The pension plan funding policy is in compliance with the federal government’s funding requirements. Pension costs for these plans are affected by the amount and timing of cash contributions to the plans, the return on plan assets, discount rates, and by employee demographics, including age, compensation, and length of service. Changes made to the provisions of the plans may also impact current and future pension costs. Actuarial formulas are used in the determination of pension costs and are affected by actual plan experience and assumptions about future experience. Key actuarial assumptions include the expected return on plan assets, the discount rate used in determining the projected benefit obligation and pension costs, and the assumed rate of increase in employee compensation. Relatively small changes in these assumptions, particularly the discount rate, may significantly affect pension costs and plan obligations for the qualified retirement plan. In determining the discount rate, management matches the plan’s projected cash flows to a spot-rate yield curve based on highly rated corporate bonds. Changes to the discount rate from year-to-year, if any, are generally made in increments of 25 basis points. There was a 25 basis point decrease in the discount rate between years, as reflected below. The methodology utilized to determine the discount rate was consistent with prior years. The weighted-average rate of compensation increased from the prior year by 25 basis points. The asset return assumption (which impacts the following year’s expense) remained consistent with the prior year. The rates are presented in the table below: December 31, 2023 2022 Discount rate 5.00 % 5.25 % Weighted-average rate of compensation increase 3.50 % 3.25 % Asset return assumption 6.75 % 6.75 % Future years’ expense level movements (up or down) may continue to be greatly influenced by long-term interest rates, asset returns, and funding levels; however, management implemented a treasury futures overlay to primarily be responsive to changing interest rates, and therefore, indirectly, discount rates that will apply to the pension, in attempting to preserve funded status. The following table sets forth the retirement plan, SERP, and PBOP funded statuses and amounts recognized on the Consolidated Balance Sheets and Consolidated Statements of Income. Year Ended December 31, 2023 2022 (Thousands of dollars) Qualified Retirement Plan SERP PBOP Qualified Retirement Plan SERP PBOP Change in benefit obligations: Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) $ 1,159,451 $ 42,097 $ 65,437 $ 1,531,197 $ 49,530 $ 84,226 Service cost 25,840 250 1,269 44,110 424 1,941 Interest cost 59,165 2,123 3,302 45,006 1,441 2,452 Actuarial loss (gain) 62,109 3,995 941 (399,066) (6,134) (18,260) Benefits paid (65,388) (3,434) (4,940) (61,796) (3,164) (4,922) Benefit obligation at end of year (PBO/PBO/APBO) 1,241,177 45,031 66,009 1,159,451 42,097 65,437 Change in plan assets: Market value of plan assets at beginning of year 1,030,044 — 38,459 1,366,043 — 52,168 Actual return on plan assets 145,716 — 4,626 (330,203) — (6,036) Employer contributions 56,000 3,434 — 56,000 3,164 — Benefits paid (65,388) (3,434) (7,165) (61,796) (3,164) (7,673) Market value of plan assets at end of year 1,166,372 — 35,920 1,030,044 — 38,459 Funded status at year end $ (74,805) $ (45,031) $ (30,089) $ (129,407) $ (42,097) $ (26,978) Weighted-average assumptions (benefit obligation): Discount rate 5.00 % 5.00 % 5.00 % 5.25 % 5.25 % 5.25 % Weighted-average rate of compensation increase 3.50 % 3.50 % N/A 3.25 % 3.25 % N/A Estimated funding for the plans above during calendar year 2024 is expected to be approximately $23 million, of which $20 million pertains to the retirement plan. Management monitors plan assets and liabilities and may, at its discretion, increase plan funding levels above the minimum in order to achieve a desired funded status and avoid or minimize potential benefit restrictions. The accumulated benefit obligation for the retirement plan and the SERP is presented below: December 31, (Thousands of dollars) 2023 2022 Retirement plan $ 1,143,204 $ 1,074,493 SERP 40,635 39,263 Benefits expected to be paid for pension, SERP, and PBOP over the next 10 years are as follows: (Millions of dollars) 2024 2025 2026 2027 2028 2029-2033 Pension $ 68.0 $ 69.0 $ 70.0 $ 72.0 $ 73.0 $ 389.0 SERP 3.4 3.3 3.3 3.2 3.2 15.4 PBOP 4.9 4.9 5.0 5.0 5.0 25.1 No assurance can be made that actual funding and benefits paid will match these estimates. For PBOP measurement purposes, the per capita cost of the covered health care benefits medical rate trend assumption is 6.0%, declining to 4.5%. Specific contributions are made for health care benefits of employees who retire after 1988, but Southwest pays all covered health care costs for employees who retired prior to 1989. The medical trend rate assumption noted above applies to the benefit obligations of pre-1989 retirees only. The service cost component of net periodic benefit costs included in the table below is part of an overhead loading process associated with the cost of labor. The overhead process ultimately results in allocation of that portion of overall net periodic benefit costs to the same accounts to which productive labor is charged. As a result, service costs become components of various accounts, primarily Operations and maintenance expense, Net regulated operations plant, and Deferred charges and other assets for both the Company and Southwest. The non-service cost components of net periodic benefit cost are reflected in Other income (deductions) on the Consolidated Statements of Income of each entity, based on accounting guidance for the presentation of such costs. Variability in total net periodic benefit cost between periods, especially with regard to the Qualified Retirement Plan, is subject to changes in underlying actuarial assumptions between periods, notably the discount rate. Components of net periodic benefit cost: Qualified Retirement Plan SERP PBOP (Thousands of dollars) 2023 2022 2021 2023 2022 2021 2023 2022 2021 Service cost $25,840 $44,110 $41,159 $250 $424 $526 $1,269 $1,941 $1,691 Interest cost 59,165 45,006 40,432 2,123 1,441 1,431 3,302 2,452 2,193 Expected return on plan assets (84,062) (79,913) (72,352) — — — (2,424) (3,228) (3,239) Amortization of prior service cost — — — — — — 175 175 959 Amortization of net actuarial loss 336 32,468 41,955 998 2,350 2,642 — — — Net periodic benefit cost $1,279 $41,671 $51,194 $3,371 $4,215 $4,599 $2,322 $1,340 $1,604 Weighted-average assumptions (net benefit cost) Discount rate 5.25 % 3.00 % 2.75 % 5.25 % 3.00 % 2.75 % 5.25 % 3.00 % 2.75 % Expected return on plan assets 6.75 % 6.50 % 6.50 % N/A N/A N/A 6.75 % 6.50 % 6.50 % Weighted-average rate of compensation increase 3.25 % 3.25 % 3.00 % 3.25 % 3.25 % 3.00 % N/A N/A N/A Other Changes in Plan Assets and Benefit Obligations Recognized in Net Periodic Benefit Cost and Other Comprehensive Income Year Ended December 31, 2023 2022 2021 (Thousands of dollars) Total Qualified Retirement Plan SERP PBOP Total Qualified Retirement Plan SERP PBOP Total Qualified Retirement Plan SERP PBOP Net actuarial loss (gain) (a) $ 3,188 $ 455 $ 3,995 $ (1,262) $ (4,079) $ 11,049 $ (6,133) $ (8,995) $ (59,176) $ (54,892) $ (3,245) $ (1,039) Amortization of prior service cost (b) (175) — — (175) (175) — — (175) (959) — — (959) Amortization of net actuarial loss (b) (1,333) (335) (998) — (34,818) (32,468) (2,350) — (44,597) (41,955) (2,642) — Regulatory adjustment 1,330 (107) — 1,437 28,232 19,062 — 9,170 88,194 86,196 — 1,998 Recognized in other comprehensive (income) loss 3,010 13 2,997 — (10,840) (2,357) (8,483) — (16,538) (10,651) (5,887) — Net periodic benefit costs recognized in net income 6,972 1,279 3,371 2,322 47,226 41,671 4,215 1,340 57,397 51,194 4,599 1,604 Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss $ 9,982 $ 1,292 $ 6,368 $ 2,322 $ 36,386 $ 39,314 $ (4,268) $ 1,340 $ 40,859 $ 40,543 $ (1,288) $ 1,604 The table above discloses the net gain or loss and prior service cost recognized in Other comprehensive income, separated into (a) amounts initially recognized in Other comprehensive income, and (b) amounts subsequently recognized as adjustments to Other comprehensive income as those amounts are amortized as components of net periodic benefit cost. See also Note 6 - Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") . The following table sets forth, by level within the three-level fair value hierarchy, the fair values of the assets of the qualified pension plan and the PBOP as of December 31, 2023 and 2022. The SERP has no assets. December 31, 2023 2022 (Thousands of dollars) Qualified Retirement Plan PBOP Total Qualified Retirement Plan PBOP Total Assets at fair value: Level 1 – Quoted prices in active markets for identical financial assets Mutual funds $ — $ 34,891 $ 34,891 $ — $ 31,631 $ 31,631 Total Level 1 Assets (1) — 34,891 34,891 — 31,631 31,631 Level 2 – Significant other observable inputs Commingled trust equity funds (2) Global 234,123 97 234,220 266,368 1,673 268,041 International 105,908 44 105,952 117,976 741 118,717 U.S. equity securities 164,966 68 165,034 184,300 1,159 185,459 Emerging markets 54,489 22 54,511 62,436 392 62,828 Commingled trust fixed income funds (3) 597,828 246 598,074 390,070 2,450 392,520 Pooled funds and mutual funds 6,593 552 7,145 6,359 412 6,771 Government fixed income and mortgage backed securities 165 — 165 159 1 160 Total Level 2 assets (4) 1,164,072 1,029 1,165,101 1,027,668 6,828 1,034,496 Total Plan assets at fair value 1,164,072 35,920 1,199,992 1,027,668 38,459 1,066,127 Insurance company general account contracts (5) 2,300 — 2,300 2,376 — 2,376 Total Plan assets $ 1,166,372 $ 35,920 $ 1,202,292 $ 1,030,044 $ 38,459 $ 1,068,503 (1) The Mutual funds category above is a balanced fund that invests in a diversified portfolio of common stocks, preferred stocks, and fixed-income securities. Under normal circumstances the balanced fund will hold no more than 75%, and no less than 25%, of its total assets in equity securities. The fund seeks regular income, conservation of principal, and an opportunity for long-term growth of principal and income. (2) The commingled trust equity funds include common collective trusts that invest in a diversified portfolio of securities regularly traded on securities exchanges. These funds are shown in the above table at net asset value (“NAV”), which is the value of securities in the fund less the amount of any liabilities outstanding. Strategies employed by the funds include investment in: ▪ Global equities, including domestic equities ▪ International developed countries equities ▪ Domestic equities ▪ Emerging markets equities Shares in the commingled trust equity funds may be redeemed given one business day notice. While they are trust equity funds and reported at NAV, due to the short redemption notice period, the lack of redemption fees, the fact that the underlying investments are exchange-traded, and that substantial liabilities do not exist subject to the NAV calculation, these investments are viewed as indirectly observable (Level 2) in the fair value hierarchy and are therefore not excluded from the body of the fair value table as a reconciling item. The global fund provides diversified exposure to global equity markets. The fund seeks to provide long-term capital growth by investing primarily in securities listed on the major developed equity markets of the U.S., Europe, and Asia, as well as within those listed on emerging country equity markets on a tactical basis. The international fund invests in international financial markets, primarily those of developed economies in Europe and the Pacific Basin. The fund invests primarily in equity securities issued by foreign corporations, but may invest in other securities perceived as offering attractive investment return opportunities. The domestic equities securities funds include a large and medium capitalization fund and a small capitalization fund. The large and medium capitalization fund is designed to track the performance of the large and medium capitalization companies contained in the index, which represents approximately 90% of the market capitalization of the U.S. stock market. The small capitalization fund is designed to provide maximum long-term appreciation through investments that are well diversified by industry. The emerging markets fund invests in countries defined as an emerging market country. Fund investments are made directly in each country or, where direct investment is inefficient or prohibited, through appropriate financial instruments or participation in commingled funds. Major emerging markets include Brazil, India, China, and other developing countries around the world. (3) The commingled trust fixed income funds consist primarily of fixed income debt securities issued by the U.S. Treasury, government agencies, and fixed income debt securities issued by corporations. The fixed income fund investments may include the use of high yield, international fixed income securities and other instruments, including derivatives, to ensure prudent diversification over a broad spectrum of investments. The changes in the value of the fixed income funds are intended to offset the changes in the pension plan liabilities due to changes in the discount rate. These funds are shown in the above table at NAV. Investments in the commingled trust fixed equity funds may be redeemed given one business day notice. While they are fixed income funds and reported at NAV, due to the short redemption notice period, the lack of redemption fees, the fact that the underlying investments are exchange-traded, and that substantial liabilities do not exist subject to the NAV calculation, these investments are viewed as indirectly observable (Level 2), and are also not excluded from the body of the fair value table as a reconciling item. (4) With the exception of items (2) and (3), which are discussed above, the Level 2 assets consist mainly of pooled funds and mutual funds. These funds are collective short-term funds that invest in Treasury bills and money market funds and are used as a temporary cash repository. (5) The insurance company general account contracts are annuity insurance contracts used to pay the pensions of employees who retired prior to 1989. The balance of the account disclosed in the above table is the contract value, which is the result of deposits, withdrawals, and interest credits. Centuri Defined Contribution Plans Centuri offers defined contribution plans under Section 401(k) of the Internal Revenue Code to its eligible employees, regardless of whether they are covered under collective-bargaining agreements. Eligibility requirements vary, as does timing of participation, matching, vesting, and profit-sharing features of the plans. Contributions by Centuri to these plans for the years ended December 31, 2023, 2022, and 2021 were $15 million , $13 million, and $9 million, re spectively. Deferred Compensation Plan Centuri sponsors a nonqualified deferred compensation plan that is offered to a select group of management and highly-compensated employees. The plan allows participants to defer up to 80% of base salary and provides a match of 100% of contributions up to 5% of a participant’s salary. The plan also allows Centuri, at its election, to credit participant accounts with discretionary contributions. Participants are 100% vested in salary deferrals, contributions, and all earnings. Participant accounts include a return based on the performance of the underlying investment options selected. Payments from the plan are designated at each annual enrollment period based on specified triggering events and are payable by lump sum or on an annual installment basis. Multiemployer Pension Plans Centuri makes defined contributions to several multiemployer defined benefit pension plans under the terms of collective bargaining agreements (“CBAs”) with various unions representing certain employees. Contribution rates are generally specified in the CBAs and are made to the plans on a “pay-as-you-go” basis. Such contributions correspond to the number of union employees and the particular plans in which they participate, and vary depending upon the location, number of ongoing projects, and the need for union resources in connection with those projects. The risks of participating in multiemployer plans are different from single-employer plans, including: (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the multiemployer plan, the unfunded obligations of the plan may become the obligation of the remaining participating employers; and (iii) if a participating employer chooses to stop participating in these multiemployer plans, the employer may be required to pay to those plans an amount based on the underfunded status of the plan. The Pension Protection Act of 2006 requires special funding and operational rules for multiemployer plans in the U.S., including classification of the plans (based on multiple factors, including the funded status of the plan), the most severe of which is “critical.” Depending upon the classification, plans may be required to adopt measures to improve their funded status through a funding improvement or rehabilitation plan, which may require additional contributions from employers (in the form of a surcharge on benefit contributions) and/or modification of retiree benefits. The amount of additional funds, if any, that Centuri may be obligated to contribute to these plans in the future cannot be estimated due to the uncertainty regarding future levels of work that may require the utilization of union employees covered by these plans, as well as uncertainty as to the future contribution levels and possible surcharges on contributions that may apply to these plans at that time. Centuri contributed $75.7 million, $71 million , and $57.4 million c ollectively to the plans for the years ended December 31, 2023, 2022, and 2021, respectively. Substantially all of the contributions made by Centuri during these years were to U.S. plans that were not classified as critical, and for which no special surcharges were assessed. Nine plans were classified as critical and required special surcharges; the aggregate contributions to these plans were $3.8 million for each of the years ended December 31, 2023 and 2022, and were insignificant during the period ending December 31, 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12 - Income Taxes Southwest Gas Holdings, Inc. : The following is a summary of income (loss) before taxes and noncontrolling interests for domestic and foreign operations: Year ended December 31, (Thousands of dollars) 2023 2022 2021 U.S. $ 176,820 $ (302,581) $ 221,507 Foreign 20,529 29,244 25,343 Total income (loss) before income taxes $ 197,349 $ (273,337) $ 246,850 Income tax expense (benefit) consists of the following: Year Ended December 31, (Thousands of dollars) 2023 2022 2021 Current: Federal $ 392 $ (949) $ (2,872) State 7,960 7,123 (11,516) Foreign 6,566 9,089 6,524 14,918 15,263 (7,864) Deferred: Federal 23,009 (76,984) 39,117 State 4,999 (12,828) 8,239 Foreign (1,094) (1,104) 156 26,914 (90,916) 47,512 Total income tax expense (benefit) $ 41,832 $ (75,653) $ 39,648 Deferred income tax expense (benefit) consists of the following significant components: Year Ended December 31, (Thousands of dollars) 2023 2022 2021 Deferred federal and state: Property-related items $ 22,460 $ 41,191 $ 35,072 Purchased gas cost adjustments (45,366) 76,306 73,613 Employee benefits 10,091 12,223 (1,484) Regulatory adjustments (28,083) (15,482) (10,101) Deferred payroll taxes — (6,344) (6,344) Deferred revenue 3,347 5,751 6,021 Debt-related costs 4,079 164 (308) Net operating loss (25,915) (120,704) (64,981) MountainWest sale/goodwill impairment 93,086 (105,507) — All other deferred (6,785) 21,505 16,076 Total deferred federal and state 26,914 (90,897) 47,564 Deferred ITC, net — (19) (52) Total deferred income tax expense (benefit) $ 26,914 $ (90,916) $ 47,512 References above and below to Deferred payroll taxes relate to the employer portion of Social Security tax, for which deferment of remittance was permissible under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. A reconciliation of the U.S. federal statutory rate to the consolidated effective tax rate (and the sources of these differences and the effect of each) are summarized as follows: Year Ended December 31, 2023 2022 2021 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % Net state taxes 5.9 3.2 1.0 Tax credits (0.2) 0.2 (0.5) Company-owned life insurance (1.5) (0.8) (1.1) Amortization of excess deferred taxes (11.7) 5.2 (4.3) MountainWest sale 5.1 — — Meals and entertainment expenses 1.7 (0.2) 0.3 All other differences 0.9 (0.9) (0.3) Consolidated effective income tax rate 21.2 % 27.7 % 16.1 % Deferred tax assets and liabilities consist of the following: December 31, (Thousands of dollars) 2023 2022 Deferred tax assets: Deferred income taxes for future amortization of ITC and excess deferred taxes $ 87,566 $ 109,093 Employee benefits 19,938 29,307 Net operating losses 249,472 223,557 Lease-related item 27,611 19,745 Goodwill impairment — 105,507 Other 7,299 13,197 Valuation allowance (1,986) (2,197) 389,900 498,209 Deferred tax liabilities: Property-related items, including accelerated depreciation 896,167 873,328 Regulatory balancing accounts 108,758 154,124 Debt-related costs 1,714 (2,365) Intangibles 93,081 105,668 Lease-related item 26,103 21,164 Other 16,611 28,275 1,142,434 1,180,194 Net noncurrent deferred tax liabilities $ 752,534 $ 681,985 Net noncurrent deferred tax liabilities above at December 31, 2023 and 2022 are reflected ne t of $463,000 and $82,000 of noncurrent deferred tax assets associated with the Company’s Canadian operations, which are shown separately on the Company’s Consolidated Balance Sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, (Thousands of dollars) 2023 2022 Unrecognized tax benefits at beginning of year $ 3,072 $ 2,629 Gross increases – tax positions in prior period 45 389 Gross decreases – tax positions in prior period (22) — Gross increases – current period tax positions — 54 Unrecognized tax benefits at end of year $ 3,095 $ 3,072 Southwest Gas Corporation : The following is a summary of income before taxes: Year ended December 31, (Thousands of dollars) 2023 2022 2021 Total income before income taxes $ 279,125 $ 184,921 $ 216,473 Income tax expense (benefit) consists of the following: Year Ended December 31, (Thousands of dollars) 2023 2022 2021 Current: Federal $ (21) $ (78) $ (3,643) State 97 7,805 (6,556) 76 7,727 (10,199) Deferred: Federal 32,776 23,710 36,842 State 4,047 (896) 2,695 36,823 22,814 39,537 Total income tax expense $ 36,899 $ 30,541 $ 29,338 Deferred income tax expense (benefit) consists of the following significant components: Year Ended December 31, (Thousands of dollars) 2023 2022 2021 Deferred federal and state: Property-related items $ 38,862 $ 29,633 $ 23,077 Purchased gas cost adjustments (45,366) 76,306 73,613 Employee benefits 8,937 5,332 5,508 Regulatory adjustments (24,548) (15,482) (10,101) Deferred payroll taxes — (892) (892) Net operating loss 58,739 (76,080) (59,119) All other deferred 199 4,016 7,503 Total deferred federal and state 36,823 22,833 39,589 Deferred ITC, net — (19) (52) Total deferred income tax expense $ 36,823 $ 22,814 $ 39,537 A reconciliation of the U.S. federal statutory rate to the consolidated effective tax rate (and the sources of these differences and the effect of each) are summarized as follows: Year Ended December 31, 2023 2022 2021 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % Net state taxes 1.6 1.6 0.3 Tax credits (0.2) (0.3) (0.6) Company-owned life insurance (0.8) 0.6 (0.9) Amortization of excess deferred taxes (8.2) (6.9) (4.9) All other differences (0.2) 0.5 (1.3) Effective income tax rate 13.2 % 16.5 % 13.6 % Deferred tax assets and liabilities consist of the following: December 31, (Thousands of dollars) 2023 2022 Deferred tax assets: Deferred income taxes for future amortization of ITC and excess deferred taxes $ 87,566 $ 94,273 Employee benefits (20,818) (12,604) Net operating losses 76,461 135,200 Other 136 2,512 143,345 219,381 Deferred tax liabilities: Property-related items, including accelerated depreciation 772,124 733,011 Regulatory balancing accounts 108,758 154,124 Debt-related costs 1,714 2,062 Other 10,585 14,132 893,181 903,329 Net deferred tax liabilities $ 749,836 $ 683,948 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, (Thousands of dollars) 2023 2022 Unrecognized tax benefits at beginning of year $ 2,644 $ 2,362 Gross increases – tax positions in prior period — 259 Gross decreases – tax positions in prior period (22) — Gross increases – current period tax positions — 23 Unrecognized tax benefits at end of year $ 2,622 $ 2,644 In assessing whether uncertain tax positions should be recognized in its financial statements, management first determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluations of whether a tax position has met the more-likely-than-not recognition threshold, management presumes that the position will be examined by the appropriate taxing authority that would have full knowledge of all relevant information. For tax positions that meet the more-likely-than-not recognition threshold, management measures the amount of benefit recognized in the financial statements at the largest amount of benefit that is greater tha n 50% li kely of being realized upon ultimate settlement. Unrecognized tax benefits are recognized in the first financial reporting period in which information becomes available indicating that such benefits will more-likely-than-not be realized. For each reporting period, management applies a consistent methodology to measure unrecognized tax benefits, and all unrecognized tax benefits are reviewed periodically and adjusted as circumstances warrant. Measurement of unrecognized tax benefits is based on management’s assessment of all relevant information, including prior audit experience, the status of audits, conclusions of tax audits, lapsing of applicable statutes of limitation, identification of new issues, and any administrative guidance or developments. At December 31, 2023, the total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $3.1 million for the Company and $2.6 million for Southwest. Unrecognized tax benefits for the Company and Southwest may change within the next twelve months due to a lapse in statute of limitations. The Company and Southwest recognize interest expense and income and penalties related to income tax matters in income tax expense. There was $45,000, $0 , and $21,000 of tax-related interest income for 2023, 2022, and 2021, respectively. The Company and its subsidiaries file a consolidated federal income tax return in the U.S. and in various states, as well as separate returns in Canada. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or Canadian income tax examinations for years before 2019. The Company and each of its subsidiaries, including Southwest, participate in a tax sharing agreement to establish the method for allocating tax benefits and losses among members of the consolidated group. The consolidated federal income tax is apportioned among the subsidiaries using a separate return method. The sale of MountainWest by the Company, which occurred in February 2023, was a taxable transaction for U.S. federal and state income tax purposes. See also Note 15 - Acquisitions and Dispositions . At December 31, 2023, the Company has a U.S. federal net operating loss carryforward of $1.03 billion. The Company also has general business credits of $4.4 million, which begin to expire in 2041. The Company has no capital loss carryforwards. At December 31, 2023, the Company has an income tax net operating loss carryforward related to Canadian operations of $28.4 million, which begins to expire in 2039. As of the same date, the Company has $541.9 million of state net operating loss carryforwards. Depending on the jurisdiction in which the state net operating loss was generated, the carryforwards will begin to expire in 2027. Management intends to continue to permanently reinvest any future foreign earnings in Canada. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Note 13 - Segment Information The Company’s operating segments are determined based on the nature of their activities. The natural gas distribution segment is engaged in the business of purchasing, distributing, and transporting natural gas. The utility infrastructure services segment is primarily engaged in the business of providing gas and electric providers installation, replacement, repair, and maintenance of energy networks. Although the utility infrastructure services operations are geographically dispersed, they are aggregated and reported as a single segment as each reporting unit has similar economic characteristics. Approximately 99% of the total Company’s long-lived assets are in the U.S. The pipeline and storage segment (sold in 2023) was primarily engaged in the business of providing interstate transportation and underground storage services, primarily composed of regulated operations under the jurisdiction of the FERC. The accounting policies of the reported segments are the same as those described within Note 1 - Background, Organization, and Summary of Significant Accounting Policies . Centuri accounts for the services provided to Southwest at contractual prices at contract inception. Accounts receivable for these services, which are not eliminated during consolidation, are presented in the table below: December 31, (Thousands of dollars) 2023 2022 Accounts receivable for Centuri services $ 13,017 $ 18,067 The following table presents the amount of revenues by geographic area: December 31, (Thousands of dollars) 2023 2022 2021 Revenues (a) United States $ 5,199,178 $ 4,637,557 $ 3,411,018 Canada 234,794 322,452 269,433 Total $ 5,433,972 $ 4,960,009 $ 3,680,451 (a) Revenues are attributed to countries based on the location of customers. The Company has two reportable segments. Southwest comprises the natural gas distribution segment and Centuri comprises the utility infrastructure services segment. As a result of the MountainWest sale in February 2023 (previously comprising the Pipeline and Storage segment), the information for the year ended December 31, 2023 presented below for MountainWest reflects activity from January 1, 2023 through February 13, 2023 (the last full day of its ownership by the Company). In order to reconcile to net income as disclosed in the Consolidated Statements of Income, an Other column is included associated with impacts of corporate and administrative activities related to Southwest Gas Holdings, Inc. The financial information pertaining to each segment as of and for the three years ended December 31, 2023, 2022, and 2021 are as follows: Year Ended December 31, 2023 (Thousands of dollars) Natural Gas Utility Infrastructure Services Pipeline and Storage Other Total Revenues from external customers $ 2,499,564 $ 2,782,845 $ 35,132 $ — $ 5,317,541 Intersegment sales — 116,431 — — 116,431 Total $ 2,499,564 $ 2,899,276 $ 35,132 $ — $ 5,433,972 Interest income $ 50,757 $ — $ — $ — $ 50,757 Interest expense $ 149,830 $ 97,476 $ 2,200 $ 42,780 $ 292,286 Depreciation and amortization $ 295,462 $ 145,446 $ — $ — $ 440,908 Income tax expense (benefit) $ 36,899 $ 14,736 $ 9,255 $ (19,058) $ 41,832 Segment net income (loss) $ 242,226 $ 19,652 $ (16,288) $ (94,701) $ 150,889 Segment assets $ 9,268,571 $ 2,592,590 $ — $ 8,735 $ 11,869,896 Capital expenditures $ 762,081 $ 106,650 $ 3,790 $ — $ 872,521 Year Ended December 31, 2022 (Thousands of dollars) Natural Gas Utility Infrastructure Services Pipeline and Storage Other Total Revenues from external customers $ 1,935,069 $ 2,625,669 $ 264,613 $ — $ 4,825,351 Intersegment sales — 134,658 — — 134,658 Total $ 1,935,069 $ 2,760,327 $ 264,613 $ — $ 4,960,009 Interest income $ 16,183 $ — $ — $ — $ 16,183 Interest expense $ 115,880 $ 61,371 $ 18,185 $ 47,314 $ 242,750 Depreciation and amortization $ 263,043 $ 155,353 $ 52,059 $ — $ 470,455 Income tax expense $ 30,541 $ 5,727 $ (89,668) $ (22,253) $ (75,653) Segment net income (loss) $ 154,380 $ 2,065 $ (283,733) $ (76,002) $ (203,290) Segment assets* $ 8,803,681 $ 2,642,272 $ 1,743,349 $ 7,312 $ 13,196,614 Capital expenditures $ 683,131 $ 130,166 $ 46,124 $ — $ 859,421 *The segment assets of the Pipeline and Storage segment represented by MountainWest have been reclassified, as of December 31, 2022, as current assets held for sale on the Company’s Consolidated Balance Sheet. See Note 15 - Acquisitions and Dispositions for additional information. Year Ended December 31, 2021 (Thousands of dollars) Natural Gas Utility Infrastructure Services Pipeline and Storage Other Total Revenues from external customers $ 1,521,790 $ 2,056,315 $ — $ — $ 3,578,105 Intersegment sales — 102,346 — — 102,346 Total $ 1,521,790 $ 2,158,661 $ — $ — $ 3,680,451 Interest income $ 5,113 $ — $ — $ — $ 5,113 Interest expense $ 97,560 $ 20,999 $ — $ 639 $ 119,198 Depreciation and amortization $ 253,398 $ 117,643 $ — $ — $ 371,041 Income tax expense $ 29,338 $ 18,776 $ — $ (8,466) $ 39,648 Segment net income (loss) $ 187,135 $ 40,420 $ — $ (26,776) $ 200,779 Segment assets $ 7,950,263 $ 2,579,748 $ 2,187,582 $ 47,664 $ 12,765,257 Capital expenditures $ 601,983 $ 113,643 $ — $ — $ 715,626 The corporate and administrative activities for Southwest Gas Holdings, Inc. in 2023 and 2022 include shareholder activism costs, costs related to the strategic review and Centuri separation planning, the settlement agreement with the Icahn Group, and a significant individual amount associated with the financing costs for the 2021 MountainWest acquisition, collectively net of tax impacts. The 2023 period also included incremental costs and other commitments under the agreement with Williams in regard to the sale of MountainWest, including indemnification for a rate case settlement agreement associated with MountainWest Overthrust Pipeline, and a post-closing true-up of $21 million, including a $7.4 million post-closing payment and working capital amounts above/below a contractual benchmark. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | Note 14 - Redeemable Noncontrolling Interests In connection with the acquisition of Linetec in November 2 018, the previous owner initially retained a 20% equity interest in Linetec, with redemption being subject to certain rights based on the passage of time or upon the occurrence of certain triggering events. Effective in 2022, the Company, by means of Centuri, has the right, but not the obligation, to purchase at fair value (subject to a floor) a portion of the interest held by the noncontrolling party, and in incremental amounts each year thereafter. In March 2022, the parties agreed to a partial redemption, reducing the noncontrolling interest to 15%, and in March 2023, agreed to a partial 5% redemption (of the 15% then remaining). Then again, Centuri paid $39.9 million to the previous owner in April 2023, thereby reducing the balance continuing to be redeemable as of December 31, 2023 to 10% under the terms of the original agreement, with Centuri now owning a 90% stake in Linetec. The shares subject to the election accumulate (if earlier elections are not made) suc h that 100% o f the interest retained by the noncontrolling party is subject to the election beginning in 2024. If the Company does not exercise its rights at each or any of the specified intervals, the noncontrolling party has the ability, but not the obligation, to exit their investment retained, by requiring Centuri to purchase a similar portion of their interest up to the maximum cumulative amounts specified at each interval discussed above. The outstanding noncontrolling interest is not subject to minimum purchase provisions and, following the remaining eligibility dates for election, such election does not expire. The redemption price represents the greater of fair value of the ownership interest to be redeemed on the redemption date or a floor amount under the terms of the agreement. The Company has determined that this noncontrolling interest is a redeemable noncontrolling interest and, in accordance with SEC guidance, is classified as mezzanine equity (temporary equity) in the Company’s Consolidated Balance Sheets. In November 2021, certain members of Ri ggs Distler management acquired a noncontrolling interest in Drum which was 1.41% as of December 31, 2023. The nonco ntrolling interest is subject to certain rights based on the passage of time or upon the occurrence of certain triggering events. Effective January 2027 and each calendar year thereafter or upon the occurrence of certain triggering events, Centuri, has the right, but not the obligation, to purchase all of the interest held by the noncontrolling party at fair value. If the rights are not exercised in accordance with the timeline noted, or upon the occurrence of certain other triggering events, the noncontrolling party has the ability, but not the obligation, to exit their investment retained by requiring Centuri to purchase all of their outstanding interest. The outstanding noncontrolling interest is not subject to minimum purchase provisions and, following the eligibility dates for the election, they do not expire. The redemption price represents the fair value of the ownership interest to be redeemed on the redemption date under the terms of the agreement. A portion of the redeemable noncontrolling interest acquired was funded through promissory notes made to noncontrolling interest holders bearing interest at the prime rate plus 2%. The promissory notes are payable by the noncontrolling interest holders upon certain triggering events including, but not limited to, termination of employment or the redemption of any interest under the agreement. The promissory notes are recognized as a reduction to the Company’s stockholders’ equity. Additionally, the Company has determined that this noncontrolling interest is a redeemable noncontrolling interest and, in accordance with SEC guidance, is classified as mezzanine equity (temporary equity) in the Company’s Consolidated Balance Sheets. Significant changes in the value of the redeemable noncontrolling interests, above a floor determined at the establishment date, are recognized as they occur, and the carrying value is adjusted as necessary at each reporting date. The fair value is estimated using a market approach that utilizes certain financial metrics from guideline public companies of similar industry and operating characteristics. Based on the fair value model employed, the estimated redemption value of the Linetec redeemable noncontrolling interest decreased by $19.4 million d uring the year ended December 31, 2023. Adjustment to the redemption value also impacted retained earnings, as reflected in the Company’s Consolidated Statement of Equity, but did not impact net income. The following depicts changes to the balances of the redeemable noncontrolling interests: Linetec Drum Total (Thousands of dollars) Balance, December 31, 2021 $ 184,148 $ 12,569 $ 196,717 Net income attributable to redeemable noncontrolling interests 5,591 15 5,606 Redemption value adjustments (3,325) — (3,325) Redemption of equity interest from noncontrolling party (39,649) — (39,649) Balance, December 31, 2022 146,765 12,584 159,349 Net income attributable to redeemable noncontrolling interests 4,473 155 4,628 Redemption value adjustments (19,366) — (19,366) Redemption of equity interest from noncontrolling party (39,894) (50) (39,944) Balance, December 31, 2023 $ 91,978 $ 12,689 $ 104,667 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Dispositions [Abstract] | |
Acquisitions and Dispositions | Note 15 - Acquisitions and Dispositions Acquisitions In August 2021, the Company, through its subsidiaries, led principally by Centuri, completed the acquisition of Drum, including its primary subsidiary, Riggs Distler. Additionally, in December 2021, the Company completed the acquisition of the MountainWest entities. The purchase accounting for both acquisitions was finalized in 2022. The following unaudited pro forma financial information reflects the consolidated results of operations of the Company assuming the Riggs Distler and MountainWest acquisitions had taken place on January 1, 2020. The most significant pro forma adjustments relate to: (i) excluding approximately $48.7 million in transaction costs from the year ended December 31, 2021, and (ii) reflecting incremental interest expense of $48.4 million in 2021. 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 what results may be in the future, for a number of reasons. The reasons include, but are not limited to, differences between the assumptions used to prepare the pro forma information, potential cost savings from operating efficiencies, nor the impact of incremental costs incurred in integrating the businesses. Amounts below are in millions of dollars, except per share amounts. Unaudited Year Ended December 31, 2021 Total operating revenues $ 4,236 Net income attributable to Southwest Gas Holdings, Inc. $ 278 Basic earnings per share $ 4.70 Diluted earnings per share $ 4.69 Dispositions In December 2022, the Company announced that the Board unanimously determined to take strategic actions to simplify the Company’s portfolio of businesses. These actions included entering into a definitive agreement to sell 100% of the recently acquired MountainWest in an all-cash transaction to Williams for $1.5 billion in total enterprise value, subject to certain adjustments. Additionally, the Company determined it will pursue a separation of Centuri to form a new independent publicly traded utility infrastructure services company. In December 2023, the Company announced its intent to pursue the Centuri Holdings IPO of newly issued shares of Centuri Holdings in the spring/summer 2024. The Board has determined that the Centuri Holdings IPO is the optimal path to advance the separation of Centuri as an independent utility infrastructure services company to maximize value for stockholders. Centuri Holdings has confidentially submitted a draft Registration Statement on Form S-1 with the SEC. The execution of the Centuri Holdings IPO is subject to market and other conditions, the completion of the SEC's review process, and final Board approval to proceed with the transaction. The Centuri Holdings IPO will be tax-free to both the Company and Centuri. The primary use of cash proceeds from the Centuri Holdings IPO is expected to be the repayment of outstanding debt at Centuri to enhance its financial flexibility post-separation. Following the Centuri Holdings IPO, the Company intends to further reduce its ownership in Centuri through sales of its remaining Centuri Holdings shares into the market or through one or more exchange offers or a combination thereof. As of December 31, 2023, the Company had a U.S. federal net operating loss carryforward of $1.03 billion, which could be available to offset a taxable gain incurred by the Company in connection with a taxable disposition of the Centuri stock. The Company also retains strategic flexibility to separate Centuri through a tax-free spin-off of all or a part of Centuri in the event market conditions are not conducive to an IPO or secondary sales by the Company following an IPO. As a result of entering into a definitive agreement to sell MountainWest and considering other factors, the Company determined that MountainWest met criteria to be characterized as held for sale as of December 31, 2022, and as a result, MountainWest’s assets and liabilities, excluding income tax related balances, were presented as held for sale on the Company’s consolidated balance sheet. The MountainWest sale did not meet the criteria for reporting discontinued operations as the sale did not represent a strategic shift that would have a major effect on the Company’s operations or financial results. Company management considered the estimated proceeds, which were below the carrying value of the disposal group, and determined that the loss on disposal was attributable to goodwill, resulting in an impairment loss of $449.6 million. The goodwill impairment loss was reported in Goodwill impairment and cost to sell This reflected the accrued post-closing payment of $7.4 million related to cash and net working capital balances above/below a contractual benchmark, with the remaining charge associated with other changes in the assets and liabilities that were not subject to post-closing payment true-up provisions. As disclosed in Note 1 - Background, Organization, and Summary of Significant Accounting Policies, the Company identified an approximately $21 million misstatement related to its initial estimation of the loss recorded upon reclassifying MountainWest as an asset held for sale during the year ended December 31, 2022 . Consequently, the impairment loss for the year ended December 31, 2022 was understated by approximately $21 million, which was corrected in the first quarter of 2023. The carrying amounts of major classes of assets and liabilities relating to MountainWest, all of which were classified as current and reported as held for sale in the Company’s Consolidated Balance Sheet as of December 31, 2022, are as follows: (Thousands of dollars) Regulated operations plant, net of accumulated depreciation of $907 million $ 957,729 Other property and investments 49,546 Other current assets (1) 188,629 Goodwill, net of accumulated impairment of $449.6 million 508,395 Deferred charges and other assets (2) 39,050 Total assets 1,743,349 Less: cost to sell 5,819 Total current assets, held for sale $ 1,737,530 Other current liabilities (3) $ 55,188 Long-term debt 448,862 Other deferred credits and liabilities (3) 140,195 Total current liabilities, held for sale $ 644,245 (1) Includes cash and cash equivalents of $23.8 million, regulatory assets of $2.2 million, and “in-kind” system gas imbalance of $116.6 million due to a significant increase in natural gas prices in December 2022. (2) Includes regulatory assets of $30.1 million. (3) Includes $18.9 million of regulatory liabilities included in Other current liabilities, and $139 million of regulatory liabilities included in Other deferred credits and liabilities (including $60.2 million related to regulatory excess deferred/other taxes and gross-up and $58.8 million of accumulated removal costs). In September 2022, the Federal Energy Regulatory Commission (the “FERC”) issued an order initiating an investigation, pursuant to section 5 of the Natural Gas Act, to determine whether rates charged by MountainWest Overthrust Pipeline, LLC, a subsidiary of MountainWest, were just and reasonable and setting the matter for hearing. In March 2023, the parties agreed to a settlement, and as a result the Company recorded an additional loss of $28.4 million from the disposal of MountainWest in the first quarter of 2023, which is included in Goodwill impairment and loss on sale in the Company’s Condensed Consolidated Statement of Income. The $28.4 million was paid in the third quarter of 2023 and the matter is now closed. The $28.4 million reduced Proceeds from the sale of businesses, net of cash sold in the Company’s Condensed Consolidated Statements of Cash Flows. Other contingent commitments were part of the agreement as well, expenses for which have been immaterial to date and are expected to continue to be immaterial overall. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Segment net income (loss) | $ 150,889 | $ (203,290) | $ 200,779 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Background, Organization, and_2
Background, Organization, and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations. This is a combined annual report of Southwest Gas Holdings, Inc. and its subsidiaries (the “Company”) and Southwest Gas Corporation and its subsidiaries (“Southwest” or the “natural gas distribution” segment). The notes to the consolidated financial statements apply to both entities. Southwest Gas Holdings, Inc., a Delaware corporation, is a holding company, owning all of the shares of common stock of Southwest, all of the shares of common stock of Centuri Group, Inc. (“Centuri” or the “utility infrastructure services” segment), and until February 14, 2023, all of the shares of common stock of MountainWest Pipelines Holding Company (“MountainWest” or the “pipeline and storage” segment). Southwest is engaged in the business of purchasing, distributing, and transporting natural gas for customers in portions of Arizona, Nevada, and California. Public utility rates, practices, facilities, and service territories of Southwest are subject to regulatory oversight. The timing and amount of rate relief can materially impact results of operations. Natural gas purchases and the timing of related recoveries can materially impact liquidity. Results for the natural gas distribution segment are higher during winter periods due to the seasonality incorporated in its regulatory rate structures. Centuri is a strategic utility infrastructure services company dedicated to partnering with North America’s gas and electric providers to build and maintain the energy network that powers millions of homes across the United States (“U.S.”) and Canada. Centuri derives revenue primarily from installation, replacement, repair, and maintenance of energy networks. Centuri |
Basis of Presentation | Basis of Presentation. The Company follows accounting principles generally accepted in the United States (“U.S. GAAP”) in accounting for all of its businesses. Unless specified otherwise, all amounts are in U.S. dollars. Accounting for regulated operations conforms with U.S. GAAP as applied to rate-regulated companies and as prescribed by federal agencies and commissions of the various states in which the rate-regulated companies operate. 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 (as of and for the periods presented) are presented on a consolidated basis for Southwest Gas Holdings, Inc. and all subsidiaries and Southwest Gas Corporation and all subsidiaries (except those accounted for using the equity method as discussed below). All significant intercompany balances and transactions have been eliminated with the exception of transactions between Southwest and Centuri in accordance with accounting treatment for rate-regulated entities. Centuri, through its subsidiaries, holds a 50% interest in W.S. Nicholls Western Construction Ltd. (“Western”), a Canadian infrastructure services company that is a variable interest entity. Centuri determined that it is not the primary beneficiary of the entity due to a shared-power structure; therefore, Centuri does not consolidate the entity and has recorded its investment, and results related thereto, using the equity method. The investment in Western, related earnings, and dividends received from Western in 2023 and 2022 were not significant. C enturi’s maximum exposure to loss as a result of its involvement with Western was estimated at $12.4 million |
Fair Value Measurements | Fair Value Measurements . Certain assets and liabilities are reported at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP states that a fair value measurement should be based on the assumptions that market participants would use in pricing the asset or liability and establishes a fair value hierarchy that ranks the inputs used to measure fair value by their reliability. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to fair values derived from unobservable inputs (Level 3 measurements). Financial assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities that a company has the ability to access at the measurement date. Level 2 – inputs other than quoted prices included within Level 1 that are observable for similar assets or liabilities, either directly or indirectly. Level 3 – unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The Company primarily used quoted market prices and other observable market pricing information (exclusive of any purchase accounting adjustments) in valuing cash and cash equivalents, long-term debt outstanding, and assets of the qualified pension plan and the postretirement benefits other than pensions required to be recorded and/or disclosed at fair value. The Company uses prices and inputs that are current as of the measurement date, and recognizes transfers between levels at either the actual date of an event or a change in circumstance that caused the transfer. |
Net Regulated Operations Plant | Net Regulated Operations Plant. |
Intangible Assets | Intangible Assets |
Cash and Cash Equivalents | Cash and Cash Equivalents. For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand, money market funds, and financial instruments with original maturities of three months or less. Such investments are carried at cost, which approximates fair value. Cash and cash equivalents of the Company includ e $48.9 million and $29.7 million of money market fund investments at December 31, 2023 and 2022, respectively. Of these amounts, $38.6 million and $17.6 million at December 31, 2023 and 20 22, respectively, were held by Southwest. The money market fund investments were acquired and are generally redeemable at their net asset value. Noncash investing activities for the Company and Southwest include capital expenditures that were not yet paid as of year end, thereby remaining in accounts payable, the amounts related to which decreased by approximately $17.1 million and $20.9 million, for the Company and Southwest, respectively during the year ended December 31, 2023; increased $23.4 million and $19.7 million, for the Company and Southwest, respectively, during the year ended December 31, 2022; and, increased $15.5 million and $13.9 million, for the Company and Southwest, respectively, during the year ended December 31, 2021. Additionally for Southwest, noncash investing activities include customer advances applied as contributions toward utility construction activity, and such amounts were not significant for the periods presented herein. Also, see Note 2 - Regulated Operations Plant and Leases for information related to right-of-use (“ROU”) assets obtained in exchange for lease liabilities, which are noncash investing and financing activities. ROU assets and lease liabilities are also subject to noncash impacts as a result of other factors, such as lease terminations and modifications. The Other change in short-term debt as presented on the Company’s and Southwest’s Consolidated Statements of Cash Flows is comprised of repayments of short-term debt and changes in the current portion of credit facilities. |
Income Taxes | Income Taxes. The asset and liability method of accounting is utilized for the recognition of income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are anticipated 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, 2023, the Company had cumulative book earnings of approximately $94 million in its foreign jurisdiction. Management previously asserted and continues to assert that all the earnings of Centuri’s Canadian subsidiaries will be permanently reinvested in Canada. As a result, no U.S. deferred income taxes have been recorded related to cumulative foreign earnings. The Financial Accounting Standards Board (the “FASB”) issued guidance to allow an accounting policy election of either (i) treating taxes attributable to future taxable income related to Global Intangible Low-Taxed Income (“GILTI”) as a current period expense when incurred or (ii) recognizing deferred taxes for temporary differences expected to reverse as GILTI in future years. The Company elected to treat GILTI as a current period cost when incurred and has considered the estimated 2023 GILTI impact to its 2023 tax expense, which was immaterial. In April 2023, the Internal Revenue Service (“IRS”) issued Revenue Procedure 2023-15, which provides a safe harbor method of accounting that taxpayers may use to determine whether expenditures to repair, maintain, replace, or improve natural gas transmission and distribution property must be capitalized for tax purposes. The Company and Southwest are currently reviewing this revenue procedure to determine the potential impact on their financial position, results of operations, and cash flows. |
Deferred Purchased Gas Costs | Deferred Purchased Gas Costs. The various regulatory commissions have established procedures to enable Southwest to adjust 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. In July 2023, the Arizona Corporation Commission (the “ACC”) approved an increase in the gas cost balancing account (“GCBA”) rate, over a two-year period, as an enhancement to the existing gas cost recovery mechanism, given the $358 million Arizona account balance existing as of May 31, 2023. The increased GCBA rate of $0.20 per therm will support timely recovery of the existing balance. Based on the design of base tariff gas cost rates in Arizona and surcharges, the account balance existing as of that date is deemed generally recoverable over the next twelve months, and it is therefore classified as a current asset on the balance sheets of the Company and Southwest. |
Prepaid and other current assets | Prepaid and other current assets . Prepaid and other current assets f or Southwest and the Company include, among other things, temporary accruals for unrecovered purchased gas costs of $207 million as of December 31, 2022, with no corresponding asset balance as of December 31, 2023. Final amounts are subject to calculations of Deferred Purchased Gas Costs , and characterized accordingly the following month, once amounts are finalized through the settlement process. Additionally, Southwest had gas pipe materials and operating supplies of $83.4 million |
Held for sale | Held for sale. |
Goodwill | Goodwill. As required by U.S. GAAP, goodwill is assessed for impairment annually, or more frequently, if circumstances indicate impairment to the carrying value of goodwill may have occurred. The goodwill impairment analysis was conducted as of October 1st using a qualitative assessment, as permitted by U.S. GAAP. Management of the Company and Southwest considered its reporting units and segments, determining that they remained consistent between periods presented below, and that no change was necessary with regard to the level at which goodwill is assessed for impairment. |
Other Current Liabilities | Other Current Liabilities. Management recognizes in its balance sheets various liabilities that are expected to be settled through future cash payments within the next twelve months, including certain regulatory mechanisms (refer to Note 5 - Regulatory Assets and Liabilities |
Accumulated Removal Costs | Accumulated Removal Costs. Approved regulatory practices allow Southwest to include in depreciation expense a component intended to recover removal costs associated with regulated operations plant retirements. In accordance with the SEC position on presentation of these amounts, management reclassifies estimated removal costs from Accumulated depreciation to Accumulated removal costs within the liabilities section of the Consolidated Balance Sheets. Management regularly updates the estimated accumulated removal costs as amounts fluctuate between periods depending on the level of replacement work performed (and actual cost experience) compared to the estimated cost of removal in rates. |
Revenue | Revenue. See Note 3 - Revenue for information related to revenue recognition for Southwest and Centuri. Intercompany Transactions. Centuri recognizes revenues generated from contracts with Southwest (see Note 13 - Segment Information ). The accounts receivable balance, revenues, and associated profits are included in the consolidated financial statements of the Company and Southwest and are not eliminated during consolidation in accordance with accounting treatment for rate-regulated entities. Utility Infrastructu r e Services Expenses. Centuri’s utility infrastructure services expenses in the Consolidated Statements of Income includes payroll expenses, office and equipment rental costs, subcontractor expenses, training, job-related materials, gains and losses on equipment sales, and professional fees. Net Cost of Gas Sold. Components of net cost of gas sold include natural gas commodity costs (fixed-price and variable-rate), pipeline capacity/transportation costs, and any actual settled costs of natural gas derivative instruments, where relevant. Also included are the net impacts of PGA deferrals and recoveries, which by their inclusion, result in net cost of gas sold overall that is comparable to amounts included in billed gas operating revenues. Differences between amounts incurred with suppliers, transmission pipelines, etc. and amounts already included in customer rates, are temporarily deferred in PGA accounts pending inclusion in customer rates. |
Operations and Maintenance Expense | Operations and Maintenance Expense. Operations and maintenance expense includes Southwest’s operating and maintenance costs associated with serving utility customers and maintaining its distribution and transmission systems, uncollectible customer accounts expense, administrative and general salaries and expense, and employee benefits expense excluding relevant non-service cost components (that have been reclassified to Other income (deductions) due to requirements in U.S. GAAP), as well as legal expense (including injuries and damages), professional and other external contracted services, and other business expenses. |
Depreciation and Amortization | Depreciation and Amortization. Regulated operations plant depreciation is computed on the straight-line remaining life method at composite rates considered sufficient to amortize costs over estimated service lives, including components which compensate for removal costs (net of salvage value), and retirements, as approved by the appropriate regulatory agency. When plant is retired from service, the original cost of plant, including cost of removal, less salvage, is charged to the accumulated provision for depreciation. See also discussion regarding Accumulated Removal Costs above. Other regulatory assets, including acquisition adjustments, are amortized when appropriate, over time periods authorized by regulators. Non-regulated operations, including utility infrastructure services-related property and equipment, are depreciated on a straight-line method based on the |
Allowance for Funds Used During Construction ("AFUDC") | Allowance for Funds Used During Construction (“AFUDC”). |
Derivatives | Derivatives . In managing its natural gas supply portfolios, Southwest has historically entered into fixed- and variable-price contracts, which qualify as derivatives. The fixed-price contracts, firm commitments to purchase a fixed amount of gas in the future at a fixed price, qualify for the normal purchases and normal sales exception that is allowed for contracts that are probable of delivery in the normal course of business, and are exempt from fair value reporting. The variable-price contracts qualify as derivative instruments; however, because the contract price is the prevailing price at the future transaction date, no fair value adjustment is required. Southwest does not utilize derivative financial instruments for speculative purposes, nor does it have trading operations. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions. 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 Other comprehensive income and accumulations thereof within stockholders’ equity. Results of operations of foreign subsidiaries are translated using the monthly weighted-average exchange rates during the respective periods. Gains and losses resulting from foreign currency transactions are included in Other income and (expenses) of the Company. Gains and losses resulting from intercompany foreign currency transactions that are of a long-term investment nature are reported in Other comprehensive income, if applicable. |
Earnings Per Share | Earnings Per Share. |
Recent Accounting Standards Updates | Recent Accounting Standards Updates . Recently issued accounting pronouncement that will be effective in 2024: In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The update, amongst other amendments, requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of the composition of other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM. The update also extends certain annual disclosures to interim periods, and is effective for fiscal years beginning after December 15, 2023 and interim periods within the fiscal years beginning after December 15, 2024. Early adoption is permitted. Management is evaluating the impacts this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures. Recently issued accounting pronouncement that will be effective after 2024: In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The update, amongst other amendments, provides for enhanced income tax information primarily through changes in the rate reconciliation and income taxes paid information. The update is effective for annual periods beginning after December 15, 2024; early adoption is permitted. Management is evaluating the impacts this update might have on the Company’s and Southwest’s disclosures. |
Subsequent Events | Subsequent Events. Management monitors events occurring after the balance sheet date and prior to the issuance of the financial statements to determine the impacts, if any, of events on the financial statements to be issued or disclosures to be made, and has reflected them where appropriate . |
Receivables and Related Allowances | Business activity with respect to natural gas utility operations is conducted with customers located within the three-state region of Arizona, Nevada, and California. Southwest’s accounts receivable are short-term in nature, with billing due dates customarily not extending beyond one month, with customers’ credit worthiness assessed upon account creation by evaluation of other utility service or their credit file, and related payment history. Although Southwest seeks generally 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 where possible, some accounts are ultimately not collected. Customer accounts are subject to collection procedures that vary by jurisdiction (late fee assessment, notice requirements for disconnection of service, and procedures for actual disconnection and/or reestablishment of service). After disconnection of service, accounts are customarily written off approximately two months after disconnection if the account remains inactive. 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, consideration of current and expected future conditions, customer and rate composition, regulatory requirements, 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 (“UGCE”). Eligible amounts are deferred and collected through a surcharge in the ratemaking process. The California jurisdictions have a regulatory mechanism specific to residential customer uncollectible accounts (“RUBA”). This is a two-way balancing account that was permitted to be implemented to track amounts for future recovery; the mechanism is subject to a cap on annual disconnections/write-offs, above which uncollectible expense would nonetheless be incurred and recognized. Eligible amounts are deferred and collected through a surcharge in the ratemaking process. S outhwest continues to actively work with customers experiencing financial hardship by means of flexible payment options and partnering with assistance agencies. Additionally, management continues to monitor expected credit losses in light of COVID-19-related moratoriums for disconnections (and earlier year lifting thereof), local/regional inflation, the magnitude and age of outstanding receivables, economic trends, and others. As referenced above, certain residential disconnection protections were recently established in Southwest’s California jurisdictions, such as prohibiting credit deposits and fees for reconnection, and limiting disconnections/write-offs, among other things; management continues to monitor these conditions and any impacts. The allowance as of December 31, 2023 reflects the expected impacts on balances a s of that date, including consideration of customers’ current and future ability to pay amounts that are due. Utility infrastructure services accounts receivable are recorded at face amounts less an allowance for doubtful accounts. Centuri’s customers are generally investment-grade gas and electric utility companies for which Centuri has historically recognized an insignificant amount of write-offs. Centuri’s accounts receivable balances carry standard payment terms of up to 60 days. Centuri maintains an allowance that is estimated based on historical collection experience, current and estimated future economic and market conditions, and a review of the current status of each customer's accounts receivable balance. Account balances are monitored at least monthly, and are charged off against the allowance when management determines it is probable the balance will not be recovered. |
Background, Organization, and_3
Background, Organization, and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Property and Investments | Other property and investments on Southwest’s and the Company’s Consolidated Balance Sheets includes: December 31, (Thousands of dollars) 2023 2022 Net cash surrender value of COLI policies $ 146,546 $ 136,245 Other property 6,112 33,152 Total Southwest Gas Corporation 152,658 169,397 Non-regulated property, equipment, and intangibles 1,752,094 1,677,218 Non-regulated accumulated provision for depreciation and amortization (675,632) (596,518) Other property and investments 37,220 31,075 Total Southwest Gas Holdings, Inc. $ 1,266,340 $ 1,281,172 |
Summary of Intangible Assets | Centuri’s intangible assets (other than goodwill) have finite lives and are associated with businesses previously acquired. The balances at December 31, 2023 and 2022, respectively, were as follows: December 31, 2023 (Thousands of dollars) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 392,512 $ (85,212) $ 307,300 Trade names and trademarks 79,408 (17,660) 61,748 Total $ 471,920 $ (102,872) $ 369,048 December 31, 2022 Customer relationships $ 391,758 $ (63,509) $ 328,249 Trade names and trademarks 79,277 (12,278) 66,999 Total $ 471,035 $ (75,787) $ 395,248 |
Schedule of Estimated Future Amortization of Intangible Assets | The estimated future amortization of the above intangible assets for the next five years and thereafter is as follows: (Thousands of dollars) 2024 $ 26,736 2025 26,723 2026 26,499 2027 26,126 2028 25,809 Thereafter 237,155 Total $ 369,048 |
Schedule of Goodwill | Goodwill in the Natural Gas Distribution and Utility Infrastructure Services segments is included in their respective Consolidated Balance Sheets as follows: (Thousands of dollars) Natural Gas Distribution Utility Infrastructure Services Total Company Balance, December 31, 2021 $ 10,095 $ 785,058 $ 795,153 Additional goodwill from Graham County acquisition 1,060 — 1,060 Measurement-period adjustments from Riggs Distler acquisition — (1,924) (1,924) Foreign currency translation adjustment — (7,039) (7,039) Balance, December 31, 2022 11,155 776,095 $ 787,250 Foreign currency translation adjustment — 2,479 2,479 Balance, December 31, 2023 $ 11,155 $ 778,574 $ 789,729 |
Schedule of Capitalized and Debt Portion of AFUDC | Regulated operations plant construction costs, including AFUDC, are recoverable as part of authorized rates through depreciation when completed projects are placed into operation, and general rate relief is requested and granted. AFUDC, disaggregated by type, included in the Company’s and Southwest’s Consolidated Statements of Income are presented in the table below: (Thousands of dollars) 2023 2022 2021 AFUDC: Debt portion $ 6,851 $ 3,535 $ 1,046 Equity portion 1,869 — — AFUDC capitalized as part of regulated operations plant $ 8,720 $ 3,535 $ 1,046 AFUDC rate 6.30 % 2.64 % 0.96 % |
Schedule of Other Income (Deductions) | The following table provides the composition of significant items included in Other income (deductions) on the Consolidated Statements of Income: (Thousands of dollars) 2023 2022 2021 Southwest Gas Corporation: Change in COLI policies $ 10,100 $ (5,400) $ 8,800 Interest income 50,757 16,183 5,113 Equity AFUDC 1,869 — — Non-service components of net periodic benefit cost 20,387 (751) (14,021) Miscellaneous expense (12,452) (16,916) (4,451) Southwest Gas Corporation – total other income (deductions) 70,661 (6,884) (4,559) Centuri, MountainWest, and Southwest Gas Holdings, Inc.: Foreign transaction gain (loss) (517) 977 (22) Equity AFUDC 82 465 — Equity in earnings of unconsolidated investments 868 2,629 226 Miscellaneous income and (expense) 60 (3,113) 863 Corporate and administrative 151 (263) (7) Southwest Gas Holdings, Inc. - total other income (deductions) $ 71,305 $ (6,189) $ (3,499) |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the denominator used in Basic and Diluted EPS calculations is shown in the following table: (In thousands) 2023 2022 2021 Weighted average basic shares 70,787 65,558 59,145 Effect of dilutive securities: Restricted stock units (1)(2) 203 — 114 Weighted average diluted shares 70,990 65,558 59,259 (1) The number of anti-dilutive restricted stock units for 2022 excluded from the calculation of diluted shares is 157,000. (2) The number of securities granted for 2023, 2022, and 2021 includes 173,000 , 144,000, and 104,000 performance share units, respectively, the total of which was derived by assuming that target performance will be achieved during the relevant performance period. |
Regulated Operations Plant an_2
Regulated Operations Plant and Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Schedule of Net Utility Plant | Major classes of regulated operations plant (plant previously associated with MountainWest is not included as the MountainWest disposal group was deemed held for sale as of December 31, 2022) and their respective balances as of December 31, 2023 and 2022 were as follows: December 31, (Thousands of dollars) 2023 2022 Gas plant: Storage $ 104,527 $ 104,218 Transmission 402,591 399,357 Distribution 8,684,949 8,039,793 General 539,188 505,109 Software and software-related intangibles 393,444 389,496 Other 15,663 15,934 10,140,362 9,453,907 Less: accumulated depreciation and amortization (2,822,669) (2,674,157) Construction work in progress 200,549 244,750 Net regulated operations plant $ 7,518,242 $ 7,024,500 |
Schedule of Depreciation and Amortization Expense | Depreciation and amortization expense on gas plant, including intangibles, was as follows: (Thousands of dollars) 2023 2022 2021 Depreciation and amortization expense $ 256,847 $ 243,857 $ 230,245 |
Schedule of Components of Lease Expense, and Supplemental Cash Flow Information Related to Leases | The components of lease expense for Centuri were as follows: (Thousands of dollars) 2023 2022 2021 Operating lease cost $ 22,162 $ 17,881 $ 15,279 Finance lease cost: Amortization of ROU assets 7,780 7,702 2,138 Interest on lease liabilities 1,680 1,520 278 Total finance lease cost 9,460 9,222 2,416 Short-term lease cost 122,333 120,339 103,800 Total lease cost $ 153,955 $ 147,442 $ 121,495 Supplemental cash flow information related to Centuri leases for the years ended December 31, 2023, 2022, and 2021 was as follows: (Thousands of dollars) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 21,908 $ 16,725 $ 14,669 Operating cash flows from finance leases 1,680 1,520 278 Financing cash flows from finance leases 12,113 11,985 3,547 ROU assets obtained in exchange for lease obligations: Operating leases $ 50,173 $ 22,653 $ 11,597 Finance leases 1,625 28,861 3,332 |
Schedule of Supplemental Information Related to Leases Included in Balance Sheet | Supplemental information related to Centuri leases, including location in the Consolidated Balance Sheets, is as follows: (Thousands of dollars) December 31, 2023 2022 Operating leases: Other property and investments $ 118,448 $ 85,270 Other current liabilities $ 19,363 $ 13,863 Other deferred credits and other long-term liabilities 105,215 77,119 Total operating lease liabilities $ 124,578 $ 90,982 Finance leases: Other property and investments $ 43,525 $ 51,313 Other current liabilities $ 11,370 $ 12,028 Other deferred credits and other long-term liabilities 24,334 34,238 Total finance lease liabilities $ 35,704 $ 46,266 Weighted average remaining lease term (in years) Operating leases 7.45 6.66 Finance leases 3.64 4.33 Weighted average discount rate Operating leases 4.88 % 4.06 % Finance leases 4.02 % 3.95 % |
Schedule of Maturities of Operating Lease Liabilities | The following is a schedule of maturities of Centuri lease liabilities as of December 31, 2023: (Thousands of dollars) Operating Leases Finance Leases 2024 $ 24,930 $ 12,674 2025 21,634 10,242 2026 19,201 7,651 2027 18,192 5,763 2028 15,916 1,728 Thereafter 49,120 748 Total lease payments 148,993 38,806 Less imputed interest 24,415 3,102 Total $ 124,578 $ 35,704 |
Schedule of Maturities of Finance Lease Liabilities | The following is a schedule of maturities of Centuri lease liabilities as of December 31, 2023: (Thousands of dollars) Operating Leases Finance Leases 2024 $ 24,930 $ 12,674 2025 21,634 10,242 2026 19,201 7,651 2027 18,192 5,763 2028 15,916 1,728 Thereafter 49,120 748 Total lease payments 148,993 38,806 Less imputed interest 24,415 3,102 Total $ 124,578 $ 35,704 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue Disaggregated by Service Type and Contract Type | Southwest’s operating revenues included on the Consolidated Statements of Income of both the Company and Southwest include revenue from contracts with customers, which is shown below disaggregated by customer type, in addition to other categories of revenue: December 31, (Thousands of dollars) 2023 2022 2021 Residential $ 1,725,223 $ 1,324,794 $ 1,035,612 Small commercial 513,366 378,520 270,214 Large commercial 117,973 85,234 57,371 Industrial/other 75,219 50,894 42,313 Transportation 104,298 100,642 92,240 Revenue from contracts with customers 2,536,079 1,940,084 1,497,750 Alternative revenue program revenues (deferrals) (52,365) (18,478) 13,181 Other revenues (a) 15,850 13,463 10,859 Total Regulated operations revenues $ 2,499,564 $ 1,935,069 $ 1,521,790 (a) Amounts include late fees and other miscellaneous revenues, and may also include the impact of certain regulatory mechanisms. The following tables display Centuri’s revenue from contracts with customers disaggregated by service type and contract type: December 31, (Thousands of dollars) 2023 2022 2021 Service Types: Gas infrastructure services $ 1,549,152 $ 1,630,911 $ 1,511,326 Electric power infrastructure services 1,307,033 1,095,350 581,939 Other 43,091 34,066 65,396 Total Utility infrastructure services revenues $ 2,899,276 $ 2,760,327 $ 2,158,661 December 31, (Thousands of dollars) 2023 2022 2021 Contract Types: Master services agreement $ 2,388,688 $ 2,342,220 $ 1,652,978 Bid contract 510,588 418,107 505,683 Total Utility infrastructure services revenues $ 2,899,276 $ 2,760,327 $ 2,158,661 Unit-price contracts $ 1,570,356 $ 1,608,131 $ 1,369,082 Fixed-price contracts 673,605 498,039 267,742 Time and materials contracts 655,315 654,157 521,837 Total Utility infrastructure services revenues $ 2,899,276 $ 2,760,327 $ 2,158,661 |
Summary of Information about Receivables, Revenue Earned on Contracts in Progress in Excess of Billings, Which are Included Within Accounts Receivable, Net of Allowances, and Amounts Billed in Excess of Revenue Earned on Contracts | The following table provides information about contracts receivable and revenue earned on contracts in progress in excess of billings (contract assets), both of which are included within Accounts receivable, net of allowances, as well as amounts billed in excess of revenue earned on contracts (contract liabilities) at Centuri, which are included in Other current liabilities as of December 31, 2023 and 2022 on the Company’s Consolidated Balance Sheets: December 31, (Thousands of dollars) 2023 2022 Contracts receivable, net $ 347,454 $ 394,022 Revenue earned on contracts in progress in excess of billings 269,808 238,059 Amounts billed in excess of revenue earned on contracts 43,694 35,769 |
Schedule of Utility Infrastructure Services Contracts Receivable | Utility infrastructure services contracts receivable consists of the following: December 31, (Thousands of dollars) 2023 2022 Billed on completed contracts and contracts in progress $ 348,021 $ 395,771 Other receivables 1,945 2,569 Contracts receivable, gross 349,966 398,340 Allowance for doubtful accounts (2,512) (4,318) Contracts receivable, net $ 347,454 $ 394,022 |
Receivables and Related Allow_2
Receivables and Related Allowances (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | The table below contains information about Southwest’s gas utility customer accounts receivable balance (net of allowance) at December 31, 2023 and 2022: December 31, (Thousands of dollars) 2023 2022 Gas utility customer accounts receivable balance $ 263,337 $ 225,317 |
Schedule of Percent of Customers by State | The following table represents the percentage of customers in each of Southwest’s three states at December 31, 2023, which was consistent with the prior year: Percent of customers by state: Arizona 54 % Nevada 37 % California 9 % |
Schedule of Allowance for Uncollectibles | Southwest activity in the allowance account for uncollectibles is summarized as follows: (Thousands of dollars) Allowance for Uncollectibles Balance, December 31, 2020 $ 4,334 Additions charged to expense 5,415 Accounts written off, less recoveries (6,490) Balance, December 31, 2021 3,259 Additions charged to expense 12,707 Accounts written off, less recoveries (11,136) Balance, December 31, 2022 4,830 Additions charged to expense 11,877 Accounts written off, less recoveries (10,612) Balance, December 31, 2023 $ 6,095 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | The following table represents existing regulatory assets and liabilities: December 31, (Thousands of dollars) 2023 2022 Regulatory assets: Accrued pension and other postretirement benefit costs (1) $ 309,794 $ 311,124 Deferred purchased gas costs (2) 552,885 450,120 Accrued purchased gas costs (3) — 207,368 Unamortized premium on reacquired debt (4) 13,080 14,707 Accrued absence time (5) 18,937 17,854 Margin, interest- and tax-tracking (6) 14,717 21,024 Other (10) 78,138 65,981 $ 987,551 $ 1,088,178 Regulatory liabilities: Accrued purchased gas costs (3) (87,579) — Accumulated removal costs (7) (458,000) (445,000) Unamortized gain on reacquired debt (8) (6,036) (6,572) Regulatory excess deferred/other taxes and gross-up (9) (394,411) (424,921) Margin, interest- and property tax-tracking (6) (57,344) (10,920) Other (10) (2,490) (5,393) Net regulatory assets (liabilities) $ (18,309) $ 195,372 (1) Included in Deferred charges and other assets on the Consolidated Balance Sheets. Recovery period is greater than five years. (See Note 11 - Pension and Other Postretirement Benefits ). (2) Balance recovered or refunded on an ongoing basis with interest. (3) Balance recovered or refunded on an ongoing basis. Asset balance is included in Prepaid and other current assets and the liability balance is included in Other current liabilities on the Consolidated Balance Sheets. (4) Included in Deferred charges and other assets on the Consolidated Balance Sheets. Recovered over life of debt instruments. (5) Regulatory recovery occurs generally on a one-year lag basis through the labor loading process. Included in Prepaid and other current assets on the Consolidated Balance Sheets. (6) Margin tracking/decoupling mechanisms are alternative revenue programs; revenue associated with under-collections (for the difference between authorized margin levels and amounts billed to customers through rates currently) is recognized as revenue so long as recovery is expected to take place within 24 months. Total category asset balances are included in Prepaid and other current assets on the Consolidated Balance Sheets. Total category liability balances are included in Other current liabilities and Other deferred credits and other long-term liabilities. (7) Included in Accumulated removal costs on the Consolidated Balance Sheets; a component of ongoing depreciation rates as part of margin rates overall and of benchmarks under trackers as part of general rate cases. (8) Included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. Amortized over life of debt instruments. (9) Includes remeasurement/reduction of the net accumulated deferred income tax liability from U.S. tax reform. The reduction (excess accumulated deferred taxes, or “EADIT”) became a regulatory liability with tax gross-up. EADIT reduces rate base, and is expected to be returned to utility customers in accordance with IRS and regulatory requirements. Included generally in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets, except for $28.5 million in 2023 which is in Other current liabilities. Amount also includes the difference in current taxes required to be returned to customers and a separate $3.7 million gross-up related to contributions in aid of construction. (10) The following tables detail the components of Other regulatory assets and liabilities. Other regulatory assets are included in either Prepaid and other current assets or Deferred charges and other assets on the Consolidated Balance Sheets (as indicated). Recovery periods vary. Other regulatory liabilities are included in either Other current liabilities or Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets (as indicated). December 31, (Thousands of dollars) 2023 2022 Other Regulatory Assets: State mandated public purpose programs (including low income and conservation programs) (a) (f) $ 21,290 $ 18,693 Infrastructure replacement programs and similar (b) (f) 16,491 8,533 Environmental compliance programs (c) (f) 4,005 5,803 Pension tracking mechanism (d) 16,167 13,098 Other (e) 20,185 19,854 $ 78,138 $ 65,981 a) Included in Prepaid and other current assets on the Consolidated Balance Sheets. b) In 2023, approximately $171,000 of these balances included in Prepaid and other current assets and $16.3 million in Deferred charges and other assets on the Consolidated Balance Sheets. In 2022, approximately $930,000 included in Prepaid and other current assets and $7.6 million included in Deferred charges and other assets on the Consolidated Balance Sheets. c) In 2023, approxim ately $3 million of these balances included in Prepaid and other current assets and $967,000 in Deferred charges and other assets on the Consolidated Balance Sheets. In 2022, approximately $5 million included in Prepaid and other current assets and $825,000 included in Deferred charges and other assets on the Consolidated Balance Sheets. d) Included in Deferred charges and other assets on the Consolidated Balance Sheets. e) In 2023, approximately $9 million inc luded in Prepaid and other current assets and $11.2 million included in Deferred charges and other assets on the Consolidated Balance Sheets. In 2022, $6.4 million included in Prepaid and other current assets and $13.4 million included in Deferred charges and other assets on the Consolidated Balance Sheets. f) Balance recovered or refunded on an ongoing basis, generally with interest. December 31, (Thousands of dollars) 2023 2022 Other Regulatory Liabilities: State mandated public purpose programs (including low income and conservation programs) (g) (i) $ (254) $ (1,567) Other (h) (i) (2,236) (3,826) $ (2,490) $ (5,393) g) Included in Other current liabilities on the Consolidated Balance Sheets. h) In 2023, included in Other current liabilities, excep t $146,000 , w hich is included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. In 2022, included in Other current liabilities, excep t $823,000 w hich is included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. i) Balance typically recovered or refunded on an ongoing basis, generally with interest. |
Schedule of Regulatory Liabilities | The following table represents existing regulatory assets and liabilities: December 31, (Thousands of dollars) 2023 2022 Regulatory assets: Accrued pension and other postretirement benefit costs (1) $ 309,794 $ 311,124 Deferred purchased gas costs (2) 552,885 450,120 Accrued purchased gas costs (3) — 207,368 Unamortized premium on reacquired debt (4) 13,080 14,707 Accrued absence time (5) 18,937 17,854 Margin, interest- and tax-tracking (6) 14,717 21,024 Other (10) 78,138 65,981 $ 987,551 $ 1,088,178 Regulatory liabilities: Accrued purchased gas costs (3) (87,579) — Accumulated removal costs (7) (458,000) (445,000) Unamortized gain on reacquired debt (8) (6,036) (6,572) Regulatory excess deferred/other taxes and gross-up (9) (394,411) (424,921) Margin, interest- and property tax-tracking (6) (57,344) (10,920) Other (10) (2,490) (5,393) Net regulatory assets (liabilities) $ (18,309) $ 195,372 (1) Included in Deferred charges and other assets on the Consolidated Balance Sheets. Recovery period is greater than five years. (See Note 11 - Pension and Other Postretirement Benefits ). (2) Balance recovered or refunded on an ongoing basis with interest. (3) Balance recovered or refunded on an ongoing basis. Asset balance is included in Prepaid and other current assets and the liability balance is included in Other current liabilities on the Consolidated Balance Sheets. (4) Included in Deferred charges and other assets on the Consolidated Balance Sheets. Recovered over life of debt instruments. (5) Regulatory recovery occurs generally on a one-year lag basis through the labor loading process. Included in Prepaid and other current assets on the Consolidated Balance Sheets. (6) Margin tracking/decoupling mechanisms are alternative revenue programs; revenue associated with under-collections (for the difference between authorized margin levels and amounts billed to customers through rates currently) is recognized as revenue so long as recovery is expected to take place within 24 months. Total category asset balances are included in Prepaid and other current assets on the Consolidated Balance Sheets. Total category liability balances are included in Other current liabilities and Other deferred credits and other long-term liabilities. (7) Included in Accumulated removal costs on the Consolidated Balance Sheets; a component of ongoing depreciation rates as part of margin rates overall and of benchmarks under trackers as part of general rate cases. (8) Included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. Amortized over life of debt instruments. (9) Includes remeasurement/reduction of the net accumulated deferred income tax liability from U.S. tax reform. The reduction (excess accumulated deferred taxes, or “EADIT”) became a regulatory liability with tax gross-up. EADIT reduces rate base, and is expected to be returned to utility customers in accordance with IRS and regulatory requirements. Included generally in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets, except for $28.5 million in 2023 which is in Other current liabilities. Amount also includes the difference in current taxes required to be returned to customers and a separate $3.7 million gross-up related to contributions in aid of construction. (10) The following tables detail the components of Other regulatory assets and liabilities. Other regulatory assets are included in either Prepaid and other current assets or Deferred charges and other assets on the Consolidated Balance Sheets (as indicated). Recovery periods vary. Other regulatory liabilities are included in either Other current liabilities or Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets (as indicated). December 31, (Thousands of dollars) 2023 2022 Other Regulatory Assets: State mandated public purpose programs (including low income and conservation programs) (a) (f) $ 21,290 $ 18,693 Infrastructure replacement programs and similar (b) (f) 16,491 8,533 Environmental compliance programs (c) (f) 4,005 5,803 Pension tracking mechanism (d) 16,167 13,098 Other (e) 20,185 19,854 $ 78,138 $ 65,981 a) Included in Prepaid and other current assets on the Consolidated Balance Sheets. b) In 2023, approximately $171,000 of these balances included in Prepaid and other current assets and $16.3 million in Deferred charges and other assets on the Consolidated Balance Sheets. In 2022, approximately $930,000 included in Prepaid and other current assets and $7.6 million included in Deferred charges and other assets on the Consolidated Balance Sheets. c) In 2023, approxim ately $3 million of these balances included in Prepaid and other current assets and $967,000 in Deferred charges and other assets on the Consolidated Balance Sheets. In 2022, approximately $5 million included in Prepaid and other current assets and $825,000 included in Deferred charges and other assets on the Consolidated Balance Sheets. d) Included in Deferred charges and other assets on the Consolidated Balance Sheets. e) In 2023, approximately $9 million inc luded in Prepaid and other current assets and $11.2 million included in Deferred charges and other assets on the Consolidated Balance Sheets. In 2022, $6.4 million included in Prepaid and other current assets and $13.4 million included in Deferred charges and other assets on the Consolidated Balance Sheets. f) Balance recovered or refunded on an ongoing basis, generally with interest. December 31, (Thousands of dollars) 2023 2022 Other Regulatory Liabilities: State mandated public purpose programs (including low income and conservation programs) (g) (i) $ (254) $ (1,567) Other (h) (i) (2,236) (3,826) $ (2,490) $ (5,393) g) Included in Other current liabilities on the Consolidated Balance Sheets. h) In 2023, included in Other current liabilities, excep t $146,000 , w hich is included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. In 2022, included in Other current liabilities, excep t $823,000 w hich is included in Other deferred credits and other long-term liabilities on the Consolidated Balance Sheets. i) Balance typically recovered or refunded on an ongoing basis, generally with interest. |
Other Comprehensive Income an_2
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) | Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss): December 31, 2023 2022 2021 (Thousands of dollars) Before- Tax Amount Tax (Expense) or Benefit (1) Net-of- Tax Amount Before- Tax Amount Tax (Expense) or Benefit (1) Net-of- Tax Amount Before- Tax Amount Tax (Expense) or Benefit (1) Net-of- Tax Amount Defined benefit pension plans: Net actuarial gain/(loss) $ (3,188) $ 765 $ (2,423) $ 4,079 $ (980) $ 3,099 $ 59,176 $ (14,202) $ 44,974 Amortization of prior service cost 175 (42) 133 175 (42) 133 959 (230) 729 Amortization of net actuarial (gain)/loss 1,333 (319) 1,014 34,818 (8,357) 26,461 44,597 (10,703) 33,894 Regulatory adjustment (1,330) 319 (1,011) (28,232) 6,775 (21,457) (88,194) 21,167 (67,027) Pension plans other comprehensive income (loss) (3,010) 723 (2,287) 10,840 (2,604) 8,236 16,538 (3,968) 12,570 FSIRS (designated hedging activities): Amounts reclassified into net income — — — 545 (129) 416 2,174 (522) 1,652 FSIRS other comprehensive income (loss) — — — 545 (129) 416 2,174 (522) 1,652 Total other comprehensive income (loss) –Southwest Gas Corporation (3,010) 723 (2,287) 11,385 (2,733) 8,652 18,712 (4,490) 14,222 Foreign currency translation adjustments: Translation adjustments 2,742 — 2,742 (6,133) — (6,133) 20 — 20 Foreign currency other comprehensive income (loss) 2,742 — 2,742 (6,133) — (6,133) 20 — 20 Total other comprehensive income (loss) – Southwest Gas Holdings, Inc. $ (268) $ 723 $ 455 $ 5,252 $ (2,733) $ 2,519 $ 18,732 $ (4,490) $ 14,242 (1) Tax amounts are calculated using a 24% rate. With regard to foreign currency translation adjustments, the Company has elected to indefinitely reinvest the earnings of Centuri’s Canadian subsidiaries in Canada, thus preventing deferred taxes on such earnings. As a result of this assertion, and no repatriation of earnings anticipated, the Company is not recognizing a tax effect or presenting a tax expense or benefit for currency translation adjustments in Other comprehensive income (loss). |
Schedule of Rollforward of Accumulated Other Comprehensive Income | The following table represents a rollforward of AOCI, presented on the Company’s Consolidated Balance Sheets and its Consolidated Statements of Equity: Defined Benefit Plans Foreign Currency Items (Thousands of dollars) Before-Tax Tax (Expense) Benefit (3) After-Tax Before- Tax After-Tax AOCI Beginning Balance AOCI December 31, 2022 $ (50,342) $ 12,081 $ (38,261) $ (5,981) $ — $ (5,981) $ (44,242) Net actuarial gain/(loss) (3,188) 765 (2,423) — — — (2,423) Translation adjustments — — — 2,742 — 2,742 2,742 Amortization of prior service cost (1) 175 (42) 133 — — — 133 Amortization of net actuarial loss (1) 1,333 (319) 1,014 — — — 1,014 Regulatory adjustment (2) (1,330) 319 (1,011) — — (1,011) Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc. (3,010) 723 (2,287) 2,742 — 2,742 455 Ending Balance AOCI December 31, 2023 $ (53,352) $ 12,804 $ (40,548) $ (3,239) $ — $ (3,239) $ (43,787) (1) These AOCI components are included in the computation of net periodic benefit cost (see Note 11 - Pension and Other Postretirement Benefits for additional details). (2) The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included in Deferred charges and other assets on the Company’s Consolidated Balance Sheets). (3) Tax amounts are calculated using a 24% rate. The following table represents a rollforward of AOCI, presented on Southwest’s Consolidated Balance Sheets: Defined Benefit Plans (Thousands of dollars) Before-Tax Tax (Expense) Benefit (6) After- Beginning Balance AOCI December 31, 2022 $ (50,342) $ 12,081 $ (38,261) Net actuarial gain/(loss) (3,188) 765 (2,423) Amortization of prior service cost (4) 175 (42) 133 Amortization of net actuarial loss (4) 1,333 (319) 1,014 Regulatory adjustment (5) (1,330) 319 (1,011) Net current period other comprehensive income (loss) attributable to Southwest Gas Corporation (3,010) 723 (2,287) Ending Balance AOCI December 31, 2023 $ (53,352) $ 12,804 $ (40,548) (4) These AOCI components are included in the computation of net periodic benefit cost (see Note 11 - Pension and Other Postretirement Benefits for additional details). (5) The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included in Deferred charges and other assets on Southwest’s Consolidated Balance Sheets). |
Schedule of Amount Recognized Before Income Tax in Accumulated Other Comprehensive Income | The following table represents amounts (before income tax impacts) included in AOCI (in the tables above), that have not yet been recognized in net periodic benefit cost: December 31, (Thousands of dollars) 2023 2022 Net actuarial loss $ (361,968) $ (360,113) Prior service cost (1,178) (1,353) Less: amount recognized in regulatory assets 309,794 311,124 Recognized in AOCI $ (53,352) $ (50,342) Other Changes in Plan Assets and Benefit Obligations Recognized in Net Periodic Benefit Cost and Other Comprehensive Income Year Ended December 31, 2023 2022 2021 (Thousands of dollars) Total Qualified Retirement Plan SERP PBOP Total Qualified Retirement Plan SERP PBOP Total Qualified Retirement Plan SERP PBOP Net actuarial loss (gain) (a) $ 3,188 $ 455 $ 3,995 $ (1,262) $ (4,079) $ 11,049 $ (6,133) $ (8,995) $ (59,176) $ (54,892) $ (3,245) $ (1,039) Amortization of prior service cost (b) (175) — — (175) (175) — — (175) (959) — — (959) Amortization of net actuarial loss (b) (1,333) (335) (998) — (34,818) (32,468) (2,350) — (44,597) (41,955) (2,642) — Regulatory adjustment 1,330 (107) — 1,437 28,232 19,062 — 9,170 88,194 86,196 — 1,998 Recognized in other comprehensive (income) loss 3,010 13 2,997 — (10,840) (2,357) (8,483) — (16,538) (10,651) (5,887) — Net periodic benefit costs recognized in net income 6,972 1,279 3,371 2,322 47,226 41,671 4,215 1,340 57,397 51,194 4,599 1,604 Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss $ 9,982 $ 1,292 $ 6,368 $ 2,322 $ 36,386 $ 39,314 $ (4,268) $ 1,340 $ 40,859 $ 40,543 $ (1,288) $ 1,604 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock Activity | The following table provides the life-to-date activity under that program through December 31, 2023, and all shares reported were issued pursuant to the Prior Shelf Registration: Gross proceeds $ 158,180,343 Less: agent commissions (1,581,803) Net proceeds $ 156,598,540 Number of shares sold 2,302,407 Weighted average price per share $ 68.70 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Amounts and Estimated Fair Values of Long-Term Debt | Details surrounding the fair value and individual carrying values of instruments are provided in the table that follows. December 31, 2023 2022 Carrying Amount Fair Carrying Amount Fair (Thousands of dollars) Southwest Gas Corporation: Debentures: 8% Series, due 2026 $ 75,000 $ 79,502 $ 75,000 $ 80,027 Medium-term notes, 7.92% series, due 2027 25,000 26,883 25,000 26,840 Medium-term notes, 6.76% series, due 2027 7,500 7,800 7,500 7,662 Notes, 5.8%, due 2027 300,000 309,180 300,000 305,913 Notes, 3.7%, due 2028 300,000 285,300 300,000 275,043 Notes, 5.45%, due 2028 300,000 307,170 — — Notes, 2.2%, due 2030 450,000 382,635 450,000 353,763 Notes, 4.05%, due 2032 600,000 563,940 600,000 527,052 Notes, 6.1%, due 2041 125,000 126,238 125,000 113,184 Notes, 4.875%, due 2043 250,000 214,050 250,000 195,703 Notes, 3.8%, due 2046 300,000 225,240 300,000 209,169 Notes, 4.15%, due 2049 300,000 236,370 300,000 218,712 Notes, 3.18%, due 2051 300,000 197,760 300,000 185,523 Unamortized discount and debt issuance costs (29,594) (29,471) 3,302,906 3,003,029 Revolving credit facility and commercial paper — — 50,000 50,000 Industrial development revenue bonds: Tax-exempt Series A, due 2028 50,000 50,000 50,000 50,000 2003 Series A, due 2038 50,000 50,000 50,000 50,000 2008 Series A, due 2038 50,000 50,000 50,000 50,000 2009 Series A, due 2039 50,000 50,000 50,000 50,000 Unamortized discount and debt issuance costs (1,363) (1,733) 198,637 198,267 Less: current maturities — — Southwest Gas Corporation total long-term debt, less current maturities $ 3,501,543 $ 3,251,296 Southwest Gas Holdings, Inc.: Centuri secured term loan facility $ 994,238 $ 996,723 $ 1,008,550 $ 995,852 Centuri secured revolving credit facility 77,121 77,205 81,955 82,315 Other debt obligations 96,599 92,209 126,844 118,314 Unamortized discount and debt issuance costs (17,111) (20,789) Less: current maturities (42,552) (44,557) Southwest Gas Holdings, Inc. total long-term debt, less current maturities $ 4,609,838 $ 4,403,299 |
Summary of Effective Interest Rates on Variable-Rate IDRBs | The effective interest rates on Southwest’s variable-rate IDRBs are included in the table below: December 31, 2023 2022 2003 Series A 5.03 % 4.68 % 2008 Series A 4.89 % 4.84 % 2009 Series A 4.65 % 4.67 % Tax-exempt Series A 4.73 % 4.30 % |
Estimated Maturities of Long-Term Debt | Estimated maturities of long-term debt for the next five years are: (Thousands of dollars) 2024 2025 2026 2027 2028 Total Southwest Gas Corporation: Debentures $ — $ — $ 75,000 $ 332,500 $ 650,000 $ 1,057,500 Revolving credit facility and commercial paper — — — — — — Total — — 75,000 332,500 650,000 1,057,500 Southwest Gas Holdings, Inc.: Centuri secured term loan facility 11,450 11,450 11,450 11,450 948,438 994,238 Centuri secured revolving credit facility — — 77,121 — — 77,121 Other debt obligations 31,101 29,554 28,651 7,293 — 96,599 Total $ 42,551 $ 41,004 $ 192,222 $ 351,243 $ 1,598,438 $ 2,225,458 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Plan Compensation Expense, Including Cash Award | The table below shows total share-based plan compensation expense which was recognized in the Consolidated Statements of Income: Year Ended December 31, (Thousands of dollars) 2023 2022 2021 Share-based compensation plan expense, net of related tax benefits $ 5,147 $ 6,225 $ 5,747 Share-based compensation plan related tax benefits 1,625 1,966 1,815 |
Schedule of Nonvested Performance and Restricted Stock Unit Plans | The following table summarizes the activity of the restricted stock/units programs as of December 31, 2023: (Thousands of shares) Performance Share Units Weighted-average grant date fair value Restricted Stock Units/Director Deferred Stock Units Weighted-average grant date fair value Nonvested/unissued at December 31, 2022 283 $ 68.00 177 $ 58.50 Granted 167 62.78 80 62.83 Dividends 7 — 9 — Forfeited or expired (71) 71.65 — — Vested and issued (1) (35) 73.41 (58) 63.45 Nonvested/unissued at December 31, 2023 351 $ 62.95 208 $ 56.29 (1) Includes shares for retiree payouts and those converted for taxes. |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Assumptions Used | The rates are presented in the table below: December 31, 2023 2022 Discount rate 5.00 % 5.25 % Weighted-average rate of compensation increase 3.50 % 3.25 % Asset return assumption 6.75 % 6.75 % |
Schedule of Defined Benefit Plans Disclosures | The following table sets forth the retirement plan, SERP, and PBOP funded statuses and amounts recognized on the Consolidated Balance Sheets and Consolidated Statements of Income. Year Ended December 31, 2023 2022 (Thousands of dollars) Qualified Retirement Plan SERP PBOP Qualified Retirement Plan SERP PBOP Change in benefit obligations: Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) $ 1,159,451 $ 42,097 $ 65,437 $ 1,531,197 $ 49,530 $ 84,226 Service cost 25,840 250 1,269 44,110 424 1,941 Interest cost 59,165 2,123 3,302 45,006 1,441 2,452 Actuarial loss (gain) 62,109 3,995 941 (399,066) (6,134) (18,260) Benefits paid (65,388) (3,434) (4,940) (61,796) (3,164) (4,922) Benefit obligation at end of year (PBO/PBO/APBO) 1,241,177 45,031 66,009 1,159,451 42,097 65,437 Change in plan assets: Market value of plan assets at beginning of year 1,030,044 — 38,459 1,366,043 — 52,168 Actual return on plan assets 145,716 — 4,626 (330,203) — (6,036) Employer contributions 56,000 3,434 — 56,000 3,164 — Benefits paid (65,388) (3,434) (7,165) (61,796) (3,164) (7,673) Market value of plan assets at end of year 1,166,372 — 35,920 1,030,044 — 38,459 Funded status at year end $ (74,805) $ (45,031) $ (30,089) $ (129,407) $ (42,097) $ (26,978) Weighted-average assumptions (benefit obligation): Discount rate 5.00 % 5.00 % 5.00 % 5.25 % 5.25 % 5.25 % Weighted-average rate of compensation increase 3.50 % 3.50 % N/A 3.25 % 3.25 % N/A |
Schedule of Accumulated Benefit Obligation | The accumulated benefit obligation for the retirement plan and the SERP is presented below: December 31, (Thousands of dollars) 2023 2022 Retirement plan $ 1,143,204 $ 1,074,493 SERP 40,635 39,263 |
Schedule of Expected Benefit Payments | Benefits expected to be paid for pension, SERP, and PBOP over the next 10 years are as follows: (Millions of dollars) 2024 2025 2026 2027 2028 2029-2033 Pension $ 68.0 $ 69.0 $ 70.0 $ 72.0 $ 73.0 $ 389.0 SERP 3.4 3.3 3.3 3.2 3.2 15.4 PBOP 4.9 4.9 5.0 5.0 5.0 25.1 |
Schedule of Net Benefit Cost | Components of net periodic benefit cost: Qualified Retirement Plan SERP PBOP (Thousands of dollars) 2023 2022 2021 2023 2022 2021 2023 2022 2021 Service cost $25,840 $44,110 $41,159 $250 $424 $526 $1,269 $1,941 $1,691 Interest cost 59,165 45,006 40,432 2,123 1,441 1,431 3,302 2,452 2,193 Expected return on plan assets (84,062) (79,913) (72,352) — — — (2,424) (3,228) (3,239) Amortization of prior service cost — — — — — — 175 175 959 Amortization of net actuarial loss 336 32,468 41,955 998 2,350 2,642 — — — Net periodic benefit cost $1,279 $41,671 $51,194 $3,371 $4,215 $4,599 $2,322 $1,340 $1,604 Weighted-average assumptions (net benefit cost) Discount rate 5.25 % 3.00 % 2.75 % 5.25 % 3.00 % 2.75 % 5.25 % 3.00 % 2.75 % Expected return on plan assets 6.75 % 6.50 % 6.50 % N/A N/A N/A 6.75 % 6.50 % 6.50 % Weighted-average rate of compensation increase 3.25 % 3.25 % 3.00 % 3.25 % 3.25 % 3.00 % N/A N/A N/A |
Schedule of Amounts Recognized in Other Comprehensive Income | The following table represents amounts (before income tax impacts) included in AOCI (in the tables above), that have not yet been recognized in net periodic benefit cost: December 31, (Thousands of dollars) 2023 2022 Net actuarial loss $ (361,968) $ (360,113) Prior service cost (1,178) (1,353) Less: amount recognized in regulatory assets 309,794 311,124 Recognized in AOCI $ (53,352) $ (50,342) Other Changes in Plan Assets and Benefit Obligations Recognized in Net Periodic Benefit Cost and Other Comprehensive Income Year Ended December 31, 2023 2022 2021 (Thousands of dollars) Total Qualified Retirement Plan SERP PBOP Total Qualified Retirement Plan SERP PBOP Total Qualified Retirement Plan SERP PBOP Net actuarial loss (gain) (a) $ 3,188 $ 455 $ 3,995 $ (1,262) $ (4,079) $ 11,049 $ (6,133) $ (8,995) $ (59,176) $ (54,892) $ (3,245) $ (1,039) Amortization of prior service cost (b) (175) — — (175) (175) — — (175) (959) — — (959) Amortization of net actuarial loss (b) (1,333) (335) (998) — (34,818) (32,468) (2,350) — (44,597) (41,955) (2,642) — Regulatory adjustment 1,330 (107) — 1,437 28,232 19,062 — 9,170 88,194 86,196 — 1,998 Recognized in other comprehensive (income) loss 3,010 13 2,997 — (10,840) (2,357) (8,483) — (16,538) (10,651) (5,887) — Net periodic benefit costs recognized in net income 6,972 1,279 3,371 2,322 47,226 41,671 4,215 1,340 57,397 51,194 4,599 1,604 Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss $ 9,982 $ 1,292 $ 6,368 $ 2,322 $ 36,386 $ 39,314 $ (4,268) $ 1,340 $ 40,859 $ 40,543 $ (1,288) $ 1,604 |
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, 2023 and 2022. The SERP has no assets. December 31, 2023 2022 (Thousands of dollars) Qualified Retirement Plan PBOP Total Qualified Retirement Plan PBOP Total Assets at fair value: Level 1 – Quoted prices in active markets for identical financial assets Mutual funds $ — $ 34,891 $ 34,891 $ — $ 31,631 $ 31,631 Total Level 1 Assets (1) — 34,891 34,891 — 31,631 31,631 Level 2 – Significant other observable inputs Commingled trust equity funds (2) Global 234,123 97 234,220 266,368 1,673 268,041 International 105,908 44 105,952 117,976 741 118,717 U.S. equity securities 164,966 68 165,034 184,300 1,159 185,459 Emerging markets 54,489 22 54,511 62,436 392 62,828 Commingled trust fixed income funds (3) 597,828 246 598,074 390,070 2,450 392,520 Pooled funds and mutual funds 6,593 552 7,145 6,359 412 6,771 Government fixed income and mortgage backed securities 165 — 165 159 1 160 Total Level 2 assets (4) 1,164,072 1,029 1,165,101 1,027,668 6,828 1,034,496 Total Plan assets at fair value 1,164,072 35,920 1,199,992 1,027,668 38,459 1,066,127 Insurance company general account contracts (5) 2,300 — 2,300 2,376 — 2,376 Total Plan assets $ 1,166,372 $ 35,920 $ 1,202,292 $ 1,030,044 $ 38,459 $ 1,068,503 (1) The Mutual funds category above is a balanced fund that invests in a diversified portfolio of common stocks, preferred stocks, and fixed-income securities. Under normal circumstances the balanced fund will hold no more than 75%, and no less than 25%, of its total assets in equity securities. The fund seeks regular income, conservation of principal, and an opportunity for long-term growth of principal and income. (2) The commingled trust equity funds include common collective trusts that invest in a diversified portfolio of securities regularly traded on securities exchanges. These funds are shown in the above table at net asset value (“NAV”), which is the value of securities in the fund less the amount of any liabilities outstanding. Strategies employed by the funds include investment in: ▪ Global equities, including domestic equities ▪ International developed countries equities ▪ Domestic equities ▪ Emerging markets equities Shares in the commingled trust equity funds may be redeemed given one business day notice. While they are trust equity funds and reported at NAV, due to the short redemption notice period, the lack of redemption fees, the fact that the underlying investments are exchange-traded, and that substantial liabilities do not exist subject to the NAV calculation, these investments are viewed as indirectly observable (Level 2) in the fair value hierarchy and are therefore not excluded from the body of the fair value table as a reconciling item. The global fund provides diversified exposure to global equity markets. The fund seeks to provide long-term capital growth by investing primarily in securities listed on the major developed equity markets of the U.S., Europe, and Asia, as well as within those listed on emerging country equity markets on a tactical basis. The international fund invests in international financial markets, primarily those of developed economies in Europe and the Pacific Basin. The fund invests primarily in equity securities issued by foreign corporations, but may invest in other securities perceived as offering attractive investment return opportunities. The domestic equities securities funds include a large and medium capitalization fund and a small capitalization fund. The large and medium capitalization fund is designed to track the performance of the large and medium capitalization companies contained in the index, which represents approximately 90% of the market capitalization of the U.S. stock market. The small capitalization fund is designed to provide maximum long-term appreciation through investments that are well diversified by industry. The emerging markets fund invests in countries defined as an emerging market country. Fund investments are made directly in each country or, where direct investment is inefficient or prohibited, through appropriate financial instruments or participation in commingled funds. Major emerging markets include Brazil, India, China, and other developing countries around the world. (3) The commingled trust fixed income funds consist primarily of fixed income debt securities issued by the U.S. Treasury, government agencies, and fixed income debt securities issued by corporations. The fixed income fund investments may include the use of high yield, international fixed income securities and other instruments, including derivatives, to ensure prudent diversification over a broad spectrum of investments. The changes in the value of the fixed income funds are intended to offset the changes in the pension plan liabilities due to changes in the discount rate. These funds are shown in the above table at NAV. Investments in the commingled trust fixed equity funds may be redeemed given one business day notice. While they are fixed income funds and reported at NAV, due to the short redemption notice period, the lack of redemption fees, the fact that the underlying investments are exchange-traded, and that substantial liabilities do not exist subject to the NAV calculation, these investments are viewed as indirectly observable (Level 2), and are also not excluded from the body of the fair value table as a reconciling item. (4) With the exception of items (2) and (3), which are discussed above, the Level 2 assets consist mainly of pooled funds and mutual funds. These funds are collective short-term funds that invest in Treasury bills and money market funds and are used as a temporary cash repository. (5) The insurance company general account contracts are annuity insurance contracts used to pay the pensions of employees who retired prior to 1989. The balance of the account disclosed in the above table is the contract value, which is the result of deposits, withdrawals, and interest credits. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Income (Loss) Before Taxes and Noncontrolling Interest for Domestic and Foreign Operations | The following is a summary of income (loss) before taxes and noncontrolling interests for domestic and foreign operations: Year ended December 31, (Thousands of dollars) 2023 2022 2021 U.S. $ 176,820 $ (302,581) $ 221,507 Foreign 20,529 29,244 25,343 Total income (loss) before income taxes $ 197,349 $ (273,337) $ 246,850 |
Summary of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following: Year Ended December 31, (Thousands of dollars) 2023 2022 2021 Current: Federal $ 392 $ (949) $ (2,872) State 7,960 7,123 (11,516) Foreign 6,566 9,089 6,524 14,918 15,263 (7,864) Deferred: Federal 23,009 (76,984) 39,117 State 4,999 (12,828) 8,239 Foreign (1,094) (1,104) 156 26,914 (90,916) 47,512 Total income tax expense (benefit) $ 41,832 $ (75,653) $ 39,648 Income tax expense (benefit) consists of the following: Year Ended December 31, (Thousands of dollars) 2023 2022 2021 Current: Federal $ (21) $ (78) $ (3,643) State 97 7,805 (6,556) 76 7,727 (10,199) Deferred: Federal 32,776 23,710 36,842 State 4,047 (896) 2,695 36,823 22,814 39,537 Total income tax expense $ 36,899 $ 30,541 $ 29,338 |
Significant Components of Deferred Income Tax Expense (Benefit) | Deferred income tax expense (benefit) consists of the following significant components: Year Ended December 31, (Thousands of dollars) 2023 2022 2021 Deferred federal and state: Property-related items $ 22,460 $ 41,191 $ 35,072 Purchased gas cost adjustments (45,366) 76,306 73,613 Employee benefits 10,091 12,223 (1,484) Regulatory adjustments (28,083) (15,482) (10,101) Deferred payroll taxes — (6,344) (6,344) Deferred revenue 3,347 5,751 6,021 Debt-related costs 4,079 164 (308) Net operating loss (25,915) (120,704) (64,981) MountainWest sale/goodwill impairment 93,086 (105,507) — All other deferred (6,785) 21,505 16,076 Total deferred federal and state 26,914 (90,897) 47,564 Deferred ITC, net — (19) (52) Total deferred income tax expense (benefit) $ 26,914 $ (90,916) $ 47,512 Deferred income tax expense (benefit) consists of the following significant components: Year Ended December 31, (Thousands of dollars) 2023 2022 2021 Deferred federal and state: Property-related items $ 38,862 $ 29,633 $ 23,077 Purchased gas cost adjustments (45,366) 76,306 73,613 Employee benefits 8,937 5,332 5,508 Regulatory adjustments (24,548) (15,482) (10,101) Deferred payroll taxes — (892) (892) Net operating loss 58,739 (76,080) (59,119) All other deferred 199 4,016 7,503 Total deferred federal and state 36,823 22,833 39,589 Deferred ITC, net — (19) (52) Total deferred income tax expense $ 36,823 $ 22,814 $ 39,537 |
Summary of Reconciliation of U.S Federal Statutory Rate to Consolidated Effective Tax Rate | A reconciliation of the U.S. federal statutory rate to the consolidated effective tax rate (and the sources of these differences and the effect of each) are summarized as follows: Year Ended December 31, 2023 2022 2021 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % Net state taxes 5.9 3.2 1.0 Tax credits (0.2) 0.2 (0.5) Company-owned life insurance (1.5) (0.8) (1.1) Amortization of excess deferred taxes (11.7) 5.2 (4.3) MountainWest sale 5.1 — — Meals and entertainment expenses 1.7 (0.2) 0.3 All other differences 0.9 (0.9) (0.3) Consolidated effective income tax rate 21.2 % 27.7 % 16.1 % A reconciliation of the U.S. federal statutory rate to the consolidated effective tax rate (and the sources of these differences and the effect of each) are summarized as follows: Year Ended December 31, 2023 2022 2021 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % Net state taxes 1.6 1.6 0.3 Tax credits (0.2) (0.3) (0.6) Company-owned life insurance (0.8) 0.6 (0.9) Amortization of excess deferred taxes (8.2) (6.9) (4.9) All other differences (0.2) 0.5 (1.3) Effective income tax rate 13.2 % 16.5 % 13.6 % |
Summary of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of the following: December 31, (Thousands of dollars) 2023 2022 Deferred tax assets: Deferred income taxes for future amortization of ITC and excess deferred taxes $ 87,566 $ 109,093 Employee benefits 19,938 29,307 Net operating losses 249,472 223,557 Lease-related item 27,611 19,745 Goodwill impairment — 105,507 Other 7,299 13,197 Valuation allowance (1,986) (2,197) 389,900 498,209 Deferred tax liabilities: Property-related items, including accelerated depreciation 896,167 873,328 Regulatory balancing accounts 108,758 154,124 Debt-related costs 1,714 (2,365) Intangibles 93,081 105,668 Lease-related item 26,103 21,164 Other 16,611 28,275 1,142,434 1,180,194 Net noncurrent deferred tax liabilities $ 752,534 $ 681,985 Deferred tax assets and liabilities consist of the following: December 31, (Thousands of dollars) 2023 2022 Deferred tax assets: Deferred income taxes for future amortization of ITC and excess deferred taxes $ 87,566 $ 94,273 Employee benefits (20,818) (12,604) Net operating losses 76,461 135,200 Other 136 2,512 143,345 219,381 Deferred tax liabilities: Property-related items, including accelerated depreciation 772,124 733,011 Regulatory balancing accounts 108,758 154,124 Debt-related costs 1,714 2,062 Other 10,585 14,132 893,181 903,329 Net deferred tax liabilities $ 749,836 $ 683,948 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, (Thousands of dollars) 2023 2022 Unrecognized tax benefits at beginning of year $ 3,072 $ 2,629 Gross increases – tax positions in prior period 45 389 Gross decreases – tax positions in prior period (22) — Gross increases – current period tax positions — 54 Unrecognized tax benefits at end of year $ 3,095 $ 3,072 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, (Thousands of dollars) 2023 2022 Unrecognized tax benefits at beginning of year $ 2,644 $ 2,362 Gross increases – tax positions in prior period — 259 Gross decreases – tax positions in prior period (22) — Gross increases – current period tax positions — 23 Unrecognized tax benefits at end of year $ 2,622 $ 2,644 |
Summary of Income Before Taxes for Continuing and Discontinued Operations | The following is a summary of income before taxes: Year ended December 31, (Thousands of dollars) 2023 2022 2021 Total income before income taxes $ 279,125 $ 184,921 $ 216,473 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Accounts Receivable for Services | Accounts receivable for these services, which are not eliminated during consolidation, are presented in the table below: December 31, (Thousands of dollars) 2023 2022 Accounts receivable for Centuri services $ 13,017 $ 18,067 |
Schedule of Revenues by Geographic Area | The following table presents the amount of revenues by geographic area: December 31, (Thousands of dollars) 2023 2022 2021 Revenues (a) United States $ 5,199,178 $ 4,637,557 $ 3,411,018 Canada 234,794 322,452 269,433 Total $ 5,433,972 $ 4,960,009 $ 3,680,451 (a) Revenues are attributed to countries based on the location of customers. |
Schedule of Segment Reporting Information | The financial information pertaining to each segment as of and for the three years ended December 31, 2023, 2022, and 2021 are as follows: Year Ended December 31, 2023 (Thousands of dollars) Natural Gas Utility Infrastructure Services Pipeline and Storage Other Total Revenues from external customers $ 2,499,564 $ 2,782,845 $ 35,132 $ — $ 5,317,541 Intersegment sales — 116,431 — — 116,431 Total $ 2,499,564 $ 2,899,276 $ 35,132 $ — $ 5,433,972 Interest income $ 50,757 $ — $ — $ — $ 50,757 Interest expense $ 149,830 $ 97,476 $ 2,200 $ 42,780 $ 292,286 Depreciation and amortization $ 295,462 $ 145,446 $ — $ — $ 440,908 Income tax expense (benefit) $ 36,899 $ 14,736 $ 9,255 $ (19,058) $ 41,832 Segment net income (loss) $ 242,226 $ 19,652 $ (16,288) $ (94,701) $ 150,889 Segment assets $ 9,268,571 $ 2,592,590 $ — $ 8,735 $ 11,869,896 Capital expenditures $ 762,081 $ 106,650 $ 3,790 $ — $ 872,521 Year Ended December 31, 2022 (Thousands of dollars) Natural Gas Utility Infrastructure Services Pipeline and Storage Other Total Revenues from external customers $ 1,935,069 $ 2,625,669 $ 264,613 $ — $ 4,825,351 Intersegment sales — 134,658 — — 134,658 Total $ 1,935,069 $ 2,760,327 $ 264,613 $ — $ 4,960,009 Interest income $ 16,183 $ — $ — $ — $ 16,183 Interest expense $ 115,880 $ 61,371 $ 18,185 $ 47,314 $ 242,750 Depreciation and amortization $ 263,043 $ 155,353 $ 52,059 $ — $ 470,455 Income tax expense $ 30,541 $ 5,727 $ (89,668) $ (22,253) $ (75,653) Segment net income (loss) $ 154,380 $ 2,065 $ (283,733) $ (76,002) $ (203,290) Segment assets* $ 8,803,681 $ 2,642,272 $ 1,743,349 $ 7,312 $ 13,196,614 Capital expenditures $ 683,131 $ 130,166 $ 46,124 $ — $ 859,421 *The segment assets of the Pipeline and Storage segment represented by MountainWest have been reclassified, as of December 31, 2022, as current assets held for sale on the Company’s Consolidated Balance Sheet. See Note 15 - Acquisitions and Dispositions for additional information. Year Ended December 31, 2021 (Thousands of dollars) Natural Gas Utility Infrastructure Services Pipeline and Storage Other Total Revenues from external customers $ 1,521,790 $ 2,056,315 $ — $ — $ 3,578,105 Intersegment sales — 102,346 — — 102,346 Total $ 1,521,790 $ 2,158,661 $ — $ — $ 3,680,451 Interest income $ 5,113 $ — $ — $ — $ 5,113 Interest expense $ 97,560 $ 20,999 $ — $ 639 $ 119,198 Depreciation and amortization $ 253,398 $ 117,643 $ — $ — $ 371,041 Income tax expense $ 29,338 $ 18,776 $ — $ (8,466) $ 39,648 Segment net income (loss) $ 187,135 $ 40,420 $ — $ (26,776) $ 200,779 Segment assets $ 7,950,263 $ 2,579,748 $ 2,187,582 $ 47,664 $ 12,765,257 Capital expenditures $ 601,983 $ 113,643 $ — $ — $ 715,626 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
Summary of Redeemable Noncontrolling Interest | The following depicts changes to the balances of the redeemable noncontrolling interests: Linetec Drum Total (Thousands of dollars) Balance, December 31, 2021 $ 184,148 $ 12,569 $ 196,717 Net income attributable to redeemable noncontrolling interests 5,591 15 5,606 Redemption value adjustments (3,325) — (3,325) Redemption of equity interest from noncontrolling party (39,649) — (39,649) Balance, December 31, 2022 146,765 12,584 159,349 Net income attributable to redeemable noncontrolling interests 4,473 155 4,628 Redemption value adjustments (19,366) — (19,366) Redemption of equity interest from noncontrolling party (39,894) (50) (39,944) Balance, December 31, 2023 $ 91,978 $ 12,689 $ 104,667 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Dispositions [Abstract] | |
Schedule of Business Acquisition, Pro Forma Information | The following unaudited pro forma financial information reflects the consolidated results of operations of the Company assuming the Riggs Distler and MountainWest acquisitions had taken place on January 1, 2020. The most significant pro forma adjustments relate to: (i) excluding approximately $48.7 million in transaction costs from the year ended December 31, 2021, and (ii) reflecting incremental interest expense of $48.4 million in 2021. 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 what results may be in the future, for a number of reasons. The reasons include, but are not limited to, differences between the assumptions used to prepare the pro forma information, potential cost savings from operating efficiencies, nor the impact of incremental costs incurred in integrating the businesses. Amounts below are in millions of dollars, except per share amounts. Unaudited Year Ended December 31, 2021 Total operating revenues $ 4,236 Net income attributable to Southwest Gas Holdings, Inc. $ 278 Basic earnings per share $ 4.70 Diluted earnings per share $ 4.69 |
Schedule of Assets Held for Sale | The carrying amounts of major classes of assets and liabilities relating to MountainWest, all of which were classified as current and reported as held for sale in the Company’s Consolidated Balance Sheet as of December 31, 2022, are as follows: (Thousands of dollars) Regulated operations plant, net of accumulated depreciation of $907 million $ 957,729 Other property and investments 49,546 Other current assets (1) 188,629 Goodwill, net of accumulated impairment of $449.6 million 508,395 Deferred charges and other assets (2) 39,050 Total assets 1,743,349 Less: cost to sell 5,819 Total current assets, held for sale $ 1,737,530 Other current liabilities (3) $ 55,188 Long-term debt 448,862 Other deferred credits and liabilities (3) 140,195 Total current liabilities, held for sale $ 644,245 (1) Includes cash and cash equivalents of $23.8 million, regulatory assets of $2.2 million, and “in-kind” system gas imbalance of $116.6 million due to a significant increase in natural gas prices in December 2022. (2) Includes regulatory assets of $30.1 million. (3) Includes $18.9 million of regulatory liabilities included in Other current liabilities, and $139 million of regulatory liabilities included in Other deferred credits and liabilities (including $60.2 million related to regulatory excess deferred/other taxes and gross-up and $58.8 million of accumulated removal costs). |
Background, Organization, and_4
Background, Organization, and Summary of Significant Accounting Policies - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jul. 31, 2023 | Mar. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) | Nov. 03, 2023 $ / oneTen-thousandthShare $ / shares shares | May 31, 2023 USD ($) | |
Significant Accounting Policies [Line Items] | ||||||||
Common stock dividend, number of preferred stock purchase right per share | shares | 1 | |||||||
Common stock, par (in USD per share) | $ / shares | $ 1 | $ 1 | $ 1 | |||||
Preferred stock purchase right, purchase price per one ten-thousandth of one preferred stock | $ / oneTen-thousandthShare | 300 | |||||||
Decrease of net cost of gas sold | $ (1,253,269,000) | $ (799,060,000) | $ (430,907,000) | |||||
Increase in deferred purchased gas costs | 117,770,000 | 147,215,000 | 343,728,000 | |||||
Amortization expenses | 26,700,000 | 29,800,000 | 17,300,000 | |||||
Increase (decrease) of capital expenditures incurred but not yet paid | (17,100,000) | 23,400,000 | 15,500,000 | |||||
Cumulative foreign earnings | $ 94,000,000 | |||||||
Deferred purchased gas costs, recovered or refunded period | 1 year | |||||||
Deferred purchased gas costs | $ 552,885,000 | 450,120,000 | ||||||
Accrued purchased gas cost | 0 | 207,000,000 | ||||||
Current assets held for sale adjustment | 21,377,000 | 1,737,530,000 | ||||||
Dividends declared but not yet paid | 44,400,000 | 41,600,000 | ||||||
Accrued purchased gas costs | 88,000,000 | 0 | ||||||
Debt portion | 6,851,000 | 3,535,000 | 1,046,000 | |||||
Equity AFUDC | 1,869,000 | 0 | 0 | |||||
Certain Assets Associated With Previous Corporate Headquarters | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Other property and investments adjustment | $ 27,000,000 | $ 27,000,000 | ||||||
Current assets held for sale adjustment | 27,000,000 | 27,000,000 | ||||||
Estimated loss on disposition of assets | $ 5,200,000 | |||||||
Arizona | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Gas cost balancing account rate, period | 2 years | |||||||
Deferred purchased gas costs | $ 358,000,000 | |||||||
Gas cost balancing account recovery period | 12 months | |||||||
Money Market Funds | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Money market fund investments | $ 48,900,000 | 29,700,000 | ||||||
Customer relationships | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Weighted-average amortization period | 19 years | |||||||
Trade names and trademarks | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Weighted-average amortization period | 15 years | |||||||
Southwest Gas Corporation | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Decrease of net cost of gas sold | $ (1,246,901,000) | (789,216,000) | (430,907,000) | |||||
Increase in deferred purchased gas costs | 102,765,000 | 158,975,000 | 343,728,000 | |||||
Increase (decrease) of capital expenditures incurred but not yet paid | (20,900,000) | 19,700,000 | 13,900,000 | |||||
Deferred purchased gas costs | 552,885,000 | 450,120,000 | ||||||
Accrued purchased gas cost | 0 | 207,000,000 | ||||||
Gas pipe materials and operating supplies | 83,400,000 | 77,300,000 | ||||||
Current assets held for sale adjustment | 21,376,000 | 0 | ||||||
Goodwill impairment loss | 0 | 0 | ||||||
Equity AFUDC | 1,869,000 | 0 | 0 | |||||
Southwest Gas Corporation | Money Market Funds | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Money market fund investments | $ 38,600,000 | 17,600,000 | ||||||
MountainWest | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Debt portion | 86,000 | |||||||
Equity AFUDC | 465,000 | |||||||
W.S. Nicholls Western Construction LTD | Centuri | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
VIE ownership percentage | 50% | |||||||
Maximum loss exposure amount | $ 12,400,000 | |||||||
Revision of Prior Period, Error Correction, Adjustment | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Decrease of net cost of gas sold | $ 5,700,000 | $ 2,300,000 | ||||||
Increase in deferred purchased gas costs | 8,000,000 | |||||||
Loss on disposal adjustment | (21,000,000) | |||||||
Impairment of asset held for sale adjustment | 21,000,000 | |||||||
Discontinued Operations, Disposed of by Sale | MountainWest | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Ownership percentage disposed | 100% | |||||||
Discontinued operation, consideration | $ 1,500,000,000 | |||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | MountainWest | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Ownership percentage disposed | 100% | |||||||
Discontinued operation, consideration | $ 1,500,000,000 | |||||||
Loss on disposal adjustment | $ (28,400,000) | $ (21,000,000) | $ (21,000,000) |
Background, Organization, and_5
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Other Property and Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Other property | $ 37,220 | $ 31,075 |
Other property and investments | 1,266,340 | 1,281,172 |
Non-regulated property, equipment, and intangibles | 1,752,094 | 1,677,218 |
Non-regulated accumulated provision for depreciation and amortization | (675,632) | (596,518) |
Southwest Gas Corporation | ||
Property, Plant and Equipment [Line Items] | ||
Net cash surrender value of COLI policies | 146,546 | 136,245 |
Other property | 6,112 | 33,152 |
Other property and investments | $ 152,658 | $ 169,397 |
Background, Organization, and_6
Background, Organization, and Summary of Significant Accounting Policies - Summary of Intangible Assets (Details) - Centuri - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 471,920 | $ 471,035 |
Accumulated Amortization | (102,872) | (75,787) |
Net Carrying Amount | 369,048 | 395,248 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 392,512 | 391,758 |
Accumulated Amortization | (85,212) | (63,509) |
Net Carrying Amount | 307,300 | 328,249 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 79,408 | 79,277 |
Accumulated Amortization | (17,660) | (12,278) |
Net Carrying Amount | $ 61,748 | $ 66,999 |
Background, Organization, and_7
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Estimated Future Amortization of Intangible Assets (Details) - Centuri - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
2024 | $ 26,736 | |
2025 | 26,723 | |
2026 | 26,499 | |
2027 | 26,126 | |
2028 | 25,809 | |
Thereafter | 237,155 | |
Net Carrying Amount | $ 369,048 | $ 395,248 |
Background, Organization, and_8
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 787,250 | |
Goodwill, ending balance | 789,729 | $ 787,250 |
Natural Gas Distribution | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 11,155 | 10,095 |
Foreign currency translation adjustment | 0 | 0 |
Goodwill, ending balance | 11,155 | 11,155 |
Natural Gas Distribution | Graham County | ||
Goodwill [Roll Forward] | ||
Additional goodwill from Graham County acquisition | 1,060 | |
Natural Gas Distribution | Riggs Distler | ||
Goodwill [Roll Forward] | ||
Measurement-period adjustments from Riggs Distler acquisition | 0 | |
Utility Infrastructure Services | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 776,095 | 785,058 |
Foreign currency translation adjustment | 2,479 | (7,039) |
Goodwill, ending balance | 778,574 | 776,095 |
Utility Infrastructure Services | Graham County | ||
Goodwill [Roll Forward] | ||
Additional goodwill from Graham County acquisition | 0 | |
Utility Infrastructure Services | Riggs Distler | ||
Goodwill [Roll Forward] | ||
Measurement-period adjustments from Riggs Distler acquisition | (1,924) | |
Natural Gas Distribution and Utility Infrastructure Services segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 787,250 | 795,153 |
Foreign currency translation adjustment | 2,479 | (7,039) |
Goodwill, ending balance | $ 789,729 | 787,250 |
Natural Gas Distribution and Utility Infrastructure Services segments | Graham County | ||
Goodwill [Roll Forward] | ||
Additional goodwill from Graham County acquisition | 1,060 | |
Natural Gas Distribution and Utility Infrastructure Services segments | Riggs Distler | ||
Goodwill [Roll Forward] | ||
Measurement-period adjustments from Riggs Distler acquisition | $ (1,924) |
Background, Organization, and_9
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Capitalized and Debt Portion of AFUDC (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Debt portion | $ 6,851 | $ 3,535 | $ 1,046 |
Equity portion | 1,869 | 0 | 0 |
AFUDC capitalized as part of regulated operations plant | $ 8,720 | $ 3,535 | $ 1,046 |
AFUDC rate | 6.30% | 2.64% | 0.96% |
Background, Organization, an_10
Background, Organization, and Summary of Significant Accounting Policies - Other Income (Deductions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other income (deductions) | |||
Interest income | $ 50,757 | $ 16,183 | $ 5,113 |
Equity AFUDC | 1,869 | 0 | 0 |
Total other income (deductions) | 71,305 | (6,189) | (3,499) |
Corporate and administrative | |||
Other income (deductions) | |||
Total other income (deductions) | 151 | (263) | (7) |
Southwest Gas Corporation | |||
Other income (deductions) | |||
Change in COLI policies | 10,100 | (5,400) | 8,800 |
Interest income | 50,757 | 16,183 | 5,113 |
Equity AFUDC | 1,869 | 0 | 0 |
Non-service components of net periodic benefit cost | 20,387 | (751) | (14,021) |
Miscellaneous income and (expense) | (12,452) | (16,916) | (4,451) |
Total other income (deductions) | 70,661 | (6,884) | (4,559) |
Centuri And MountainWest | |||
Other income (deductions) | |||
Equity AFUDC | 82 | 465 | 0 |
Miscellaneous income and (expense) | 60 | (3,113) | 863 |
Equity in earnings of unconsolidated investments | 868 | 2,629 | 226 |
Foreign transaction gain (loss) | $ (517) | $ 977 | $ (22) |
Background, Organization, an_11
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average basic shares (in shares) | 70,787 | 65,558 | 59,145 |
Effect of dilutive securities: | |||
Restricted stock units (in shares) | 203 | 0 | 114 |
Weighted average diluted shares (in shares) | 70,990 | 65,558 | 59,259 |
Number of performance share units granted (in shares) | 173 | 144 | 104 |
Restricted Stock Units/Director Deferred Stock Units | |||
Effect of dilutive securities: | |||
Antidilutive securities (in shares) | 157 |
Regulated Operations Plant an_3
Regulated Operations Plant and Leases - Schedule of Regulated Operations Plant (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | $ 10,140,362 | $ 9,453,907 |
Less: accumulated depreciation and amortization | (2,822,669) | (2,674,157) |
Construction work in progress | 200,549 | 244,750 |
Net regulated operations plant | 7,518,242 | 7,024,500 |
Storage | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 104,527 | 104,218 |
Transmission | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 402,591 | 399,357 |
Distribution | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 8,684,949 | 8,039,793 |
General | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 539,188 | 505,109 |
Software and software-related intangibles | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | 393,444 | 389,496 |
Other | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas plant | $ 15,663 | $ 15,934 |
Regulated Operations Plant an_4
Regulated Operations Plant and Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Annual utility depreciation and amortization expense percentage | 2.60% | 2.70% | 2.70% | |
Amortization of intangibles | $ 26.7 | $ 29.8 | $ 17.3 | |
Centuri | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Lease remaining lease term (up to) | 15 years | 15 years | ||
Lease renewal term (up to) | 5 years | 5 years | ||
Lease termination period | 1 year | |||
Gas plant | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Amortization of intangibles | $ 20.5 | $ 21 | $ 17.7 | |
Gas, Transmission and Distribution Plant | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Annual utility depreciation and amortization expense percentage | 2.20% |
Regulated Operations Plant an_5
Regulated Operations Plant and Leases - Schedule of Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 440,908 | $ 470,455 | $ 371,041 |
Gas plant | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 256,847 | $ 243,857 | $ 230,245 |
Regulated Operations Plant an_6
Regulated Operations Plant and Leases - Components of Lease Expense (Details) - Centuri - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 22,162 | $ 17,881 | $ 15,279 |
Amortization of ROU assets | 7,780 | 7,702 | 2,138 |
Interest on lease liabilities | 1,680 | 1,520 | 278 |
Total finance lease cost | 9,460 | 9,222 | 2,416 |
Short-term lease cost | 122,333 | 120,339 | 103,800 |
Total lease cost | $ 153,955 | $ 147,442 | $ 121,495 |
Regulated Operations Plant an_7
Regulated Operations Plant and Leases - Supplemental Cash Flow Information Related to Leases (Details) - Centuri - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 21,908 | $ 16,725 | $ 14,669 |
Operating cash flows from finance leases | 1,680 | 1,520 | 278 |
Financing cash flows from finance leases | 12,113 | 11,985 | 3,547 |
ROU assets obtained in exchange for lease obligations: | |||
Operating leases | 50,173 | 22,653 | 11,597 |
Finance leases | $ 1,625 | $ 28,861 | $ 3,332 |
Regulated Operations Plant an_8
Regulated Operations Plant and Leases - Supplemental Information Related to Leases Included in Balance Sheet (Details) - Centuri - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating leases: | ||
Other property and investments | $ 118,448 | $ 85,270 |
Other current liabilities | 19,363 | 13,863 |
Other deferred credits and other long-term liabilities | 105,215 | 77,119 |
Total operating lease liabilities | 124,578 | 90,982 |
Finance leases: | ||
Other property and investments | 43,525 | 51,313 |
Other current liabilities | 11,370 | 12,028 |
Other deferred credits and other long-term liabilities | 24,334 | 34,238 |
Total finance lease liabilities | $ 35,704 | $ 46,266 |
Weighted average remaining lease term (in years) | ||
Operating leases | 7 years 5 months 12 days | 6 years 7 months 28 days |
Finance leases | 3 years 7 months 20 days | 4 years 3 months 29 days |
Weighted average discount rate | ||
Operating leases | 4.88% | 4.06% |
Finance leases | 4.02% | 3.95% |
Regulated Operations Plant an_9
Regulated Operations Plant and Leases - Schedule of Maturities of Lease Liabilities (Details) - Centuri - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 24,930 | |
2025 | 21,634 | |
2026 | 19,201 | |
2027 | 18,192 | |
2028 | 15,916 | |
Thereafter | 49,120 | |
Total lease payments | 148,993 | |
Less imputed interest | 24,415 | |
Total | 124,578 | $ 90,982 |
Finance Leases | ||
2024 | 12,674 | |
2025 | 10,242 | |
2026 | 7,651 | |
2027 | 5,763 | |
2028 | 1,728 | |
Thereafter | 748 | |
Total lease payments | 38,806 | |
Less imputed interest | 3,102 | |
Total | $ 35,704 | $ 46,266 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) type customer contract | |
Segment Reporting Information [Line Items] | |
Number of customers party to contracts with rate components subject to negotiation (less than) | customer | 24 |
Changes in contract assets | $ | $ 31.7 |
Changes in contract liability | $ | $ 7.9 |
Southwest Gas Corporation | |
Segment Reporting Information [Line Items] | |
Number of types of services provided to customers | type | 2 |
Number of customers | customer | 2,200,000 |
Centuri | |
Segment Reporting Information [Line Items] | |
Number of types of services provided to customers | type | 3 |
Number of types of agreements with customers | type | 2 |
Number of contracts with original duration more than one year | contract | 56 |
Centuri | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Segment Reporting Information [Line Items] | |
Transaction price allocated to unsatisfied performance obligations of contracts | $ | $ 292.9 |
Transaction price allocated to unsatisfied performance obligations of contracts, period | 2 years |
Revenue - Schedule of Regulated
Revenue - Schedule of Regulated Operations Revenues: Natural Gas Distribution Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total Regulated operations revenues | $ 2,534,696 | $ 2,199,682 | $ 1,521,790 |
Southwest Gas Corporation | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 2,536,079 | 1,940,084 | 1,497,750 |
Alternative revenue program revenues (deferrals) | (52,365) | (18,478) | 13,181 |
Other revenues | 15,850 | 13,463 | 10,859 |
Total Regulated operations revenues | 2,499,564 | 1,935,069 | 1,521,790 |
Residential | Southwest Gas Corporation | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,725,223 | 1,324,794 | 1,035,612 |
Small commercial | Southwest Gas Corporation | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 513,366 | 378,520 | 270,214 |
Large commercial | Southwest Gas Corporation | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 117,973 | 85,234 | 57,371 |
Industrial/other | Southwest Gas Corporation | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 75,219 | 50,894 | 42,313 |
Transportation | Southwest Gas Corporation | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 104,298 | $ 100,642 | $ 92,240 |
Revenue - Schedule of Regulat_2
Revenue - Schedule of Regulated Operations Revenues: Utility Infrastructure Services Segment (Details) - Centuri - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 2,899,276 | $ 2,760,327 | $ 2,158,661 |
Master services agreement | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 2,388,688 | 2,342,220 | 1,652,978 |
Bid contract | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 510,588 | 418,107 | 505,683 |
Unit-price contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,570,356 | 1,608,131 | 1,369,082 |
Fixed-price contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 673,605 | 498,039 | 267,742 |
Time and materials contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 655,315 | 654,157 | 521,837 |
Gas infrastructure services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,549,152 | 1,630,911 | 1,511,326 |
Electric power infrastructure services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,307,033 | 1,095,350 | 581,939 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 43,091 | $ 34,066 | $ 65,396 |
Revenue - Summary of Informatio
Revenue - Summary of Information about Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contracts receivable, net | $ 347,454 | $ 394,022 |
Revenue earned on contracts in progress in excess of billings | 269,808 | 238,059 |
Amounts billed in excess of revenue earned on contracts | $ 43,694 | $ 35,769 |
Revenue - Schedule of Utility I
Revenue - Schedule of Utility Infrastructure Services Contracts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disaggregation of Revenue [Line Items] | ||
Contracts receivable, net | $ 347,454 | $ 394,022 |
Utility Infrastructure Services | ||
Disaggregation of Revenue [Line Items] | ||
Contracts receivable, gross | 349,966 | 398,340 |
Allowance for doubtful accounts | (2,512) | (4,318) |
Contracts receivable, net | 347,454 | 394,022 |
Utility Infrastructure Services | Billed on completed contracts and contracts in progress | ||
Disaggregation of Revenue [Line Items] | ||
Contracts receivable, gross | 348,021 | 395,771 |
Utility Infrastructure Services | Other receivables | ||
Disaggregation of Revenue [Line Items] | ||
Contracts receivable, gross | $ 1,945 | $ 2,569 |
Receivables and Related Allow_3
Receivables and Related Allowances - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) state | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Receivables And Related Allowances [Line Items] | ||||
Number of states in which entity operates | state | 3 | |||
Accounts receivable, extending period | 1 month | |||
Threshold period after inactivation for write-off of accounts receivable | 2 months | |||
Customer accounts receivable | $ 886,549 | $ 866,246 | ||
Allowance for doubtful accounts | $ 6,095 | 4,830 | $ 3,259 | $ 4,334 |
Centuri | ||||
Receivables And Related Allowances [Line Items] | ||||
Threshold period after inactivation for write-off of accounts receivable | 60 days | |||
Customer accounts receivable | $ 617,300 | |||
Allowance for doubtful accounts | $ 2,500 | $ 4,300 |
Receivables and Related Allow_4
Receivables and Related Allowances - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Receivables [Abstract] | ||
Gas utility customer accounts receivable balance | $ 263,337 | $ 225,317 |
Receivables and Related Allow_5
Receivables and Related Allowances - Schedule of Percent of Customers by State (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Arizona | |
Receivables And Related Allowances [Line Items] | |
Percent of customers by state | 54% |
Nevada | |
Receivables And Related Allowances [Line Items] | |
Percent of customers by state | 37% |
California | |
Receivables And Related Allowances [Line Items] | |
Percent of customers by state | 9% |
Receivables and Related Allow_6
Receivables and Related Allowances - Schedule of Allowance for Uncollectibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ 4,830 | $ 3,259 | $ 4,334 |
Additions charged to expense | 11,877 | 12,707 | 5,415 |
Accounts written off, less recoveries | (10,612) | (11,136) | (6,490) |
Ending Balance | $ 6,095 | $ 4,830 | $ 3,259 |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities - Schedule of Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | $ 987,551 | $ 1,088,178 |
Net regulatory assets (liabilities) | $ (18,309) | 195,372 |
Accrued pension and other postretirement benefit costs, recovery period | 5 years | |
Accrued purchased gas costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | $ (87,579) | 0 |
Accumulated removal costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (458,000) | (445,000) |
Unamortized gain on reacquired debt | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (6,036) | (6,572) |
Regulatory excess deferred/other taxes and gross-up | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (394,411) | (424,921) |
Regulatory excess deferred/other taxes and gross-up | Other current liabilities | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (28,500) | |
Margin, interest - and property tax-tracking | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (57,344) | (10,920) |
Other | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (2,490) | (5,393) |
Gross-up related to contributions in aid of construction | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities | (3,700) | |
Accrued pension and other postretirement benefit costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | 309,794 | 311,124 |
Deferred purchased gas costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | 552,885 | 450,120 |
Accrued purchased gas costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | 0 | 207,368 |
Unamortized premium on reacquired debt | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | 13,080 | 14,707 |
Accrued absence time | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | $ 18,937 | 17,854 |
Regulatory assets, accrued absence time, lag period | 1 year | |
Margin, interest - and property tax-tracking | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | $ 14,717 | 21,024 |
Regulatory assets, margin, interest and property tax-tracking, recovery period | 24 months | |
Other | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets | $ 78,138 | $ 65,981 |
Regulatory Assets and Liabili_4
Regulatory Assets and Liabilities - Schedule of Components of Other Regulatory Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 987,551 | $ 1,088,178 |
State mandated public purpose programs (including low income and conservation programs) | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 21,290 | 18,693 |
Infrastructure replacement programs and similar | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 16,491 | 8,533 |
Infrastructure replacement programs and similar | Prepaids and other current assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 171 | 930 |
Infrastructure replacement programs and similar | Deferred charges and other assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 16,300 | 7,600 |
Environmental compliance programs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 4,005 | 5,803 |
Environmental compliance programs | Prepaids and other current assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 3,000 | 5,000 |
Environmental compliance programs | Deferred charges and other assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 967 | 825 |
Pension tracking mechanism | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 16,167 | 13,098 |
Other | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 20,185 | 19,854 |
Other | Prepaids and other current assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 9,000 | |
Other | Deferred charges and other assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 11,200 | |
Other | Southwest Gas Corporation | Prepaids and other current assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 6,400 | |
Other | Southwest Gas Corporation | Deferred charges and other assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 13,400 | |
Other regulatory assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 78,138 | $ 65,981 |
Regulatory Assets and Liabili_5
Regulatory Assets and Liabilities - Schedule of Components of Other Regulatory Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
State mandated public purpose programs (including low income and conservation programs) | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ 254 | $ 1,567 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 2,236 | 3,826 |
Other | Other deferred credits and other long-term liabilities | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 146 | 823 |
Other regulatory liabilities | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ 2,490 | $ 5,393 |
Other Comprehensive Income an_3
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") - Related Tax Effects Allocated to OCI (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before tax | $ (268) | $ 5,252 | $ 18,732 |
Other comprehensive income (loss), tax | 723 | (2,733) | (4,490) |
Total other comprehensive income (loss), net of tax | $ 455 | $ 2,519 | $ 14,242 |
Statutory income tax rate | 24% | 24% | 24% |
Southwest Gas Corporation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before tax | $ (3,010) | $ 11,385 | $ 18,712 |
Other comprehensive income (loss), tax | 723 | (2,733) | (4,490) |
Total other comprehensive income (loss), net of tax | $ (2,287) | 8,652 | 14,222 |
Statutory income tax rate | 24% | ||
Pension plans other comprehensive income (loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications, before tax | $ (3,188) | ||
Other comprehensive income (loss) before reclassifications, tax | 765 | ||
Other comprehensive income (loss) before reclassifications, net of tax | (2,423) | ||
Other comprehensive income (loss), before tax | (3,010) | ||
Other comprehensive income (loss), tax | 723 | ||
Total other comprehensive income (loss), net of tax | (2,287) | ||
Pension plans other comprehensive income (loss) | Southwest Gas Corporation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications, before tax | (3,188) | ||
Other comprehensive income (loss) before reclassifications, tax | 765 | ||
Other comprehensive income (loss) before reclassifications, net of tax | (2,423) | ||
Other comprehensive income (loss), before tax | (3,010) | 10,840 | 16,538 |
Other comprehensive income (loss), tax | 723 | (2,604) | (3,968) |
Total other comprehensive income (loss), net of tax | (2,287) | 8,236 | 12,570 |
Net actuarial gain/(loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before tax | 1,333 | ||
Other comprehensive income (loss), tax | (319) | ||
Total other comprehensive income (loss), net of tax | 1,014 | ||
Net actuarial gain/(loss) | Southwest Gas Corporation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications, before tax | (3,188) | 4,079 | 59,176 |
Other comprehensive income (loss) before reclassifications, tax | 765 | (980) | (14,202) |
Other comprehensive income (loss) before reclassifications, net of tax | (2,423) | 3,099 | 44,974 |
Reclassification from AOCI, before Tax | 1,333 | 34,818 | 44,597 |
Reclassification from AOCI, tax | (319) | (8,357) | (10,703) |
Reclassification from AOCI, net of tax | 1,014 | 26,461 | 33,894 |
Amortization of prior service cost | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before tax | 175 | ||
Other comprehensive income (loss), tax | (42) | ||
Total other comprehensive income (loss), net of tax | 133 | ||
Amortization of prior service cost | Southwest Gas Corporation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from AOCI, before Tax | 175 | 175 | 959 |
Reclassification from AOCI, tax | (42) | (42) | (230) |
Reclassification from AOCI, net of tax | 133 | 133 | 729 |
Regulatory adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before tax | (1,330) | ||
Other comprehensive income (loss), tax | 319 | ||
Total other comprehensive income (loss), net of tax | (1,011) | ||
Regulatory adjustment | Southwest Gas Corporation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications, before tax | (1,330) | (28,232) | (88,194) |
Other comprehensive income (loss) before reclassifications, tax | 319 | 6,775 | 21,167 |
Other comprehensive income (loss) before reclassifications, net of tax | (1,011) | (21,457) | (67,027) |
Other comprehensive income (loss), before tax | (1,330) | ||
Other comprehensive income (loss), tax | 319 | ||
Total other comprehensive income (loss), net of tax | (1,011) | ||
FSIRS | Southwest Gas Corporation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from AOCI, before Tax | 0 | 545 | 2,174 |
Reclassification from AOCI, tax | 0 | (129) | (522) |
Reclassification from AOCI, net of tax | 0 | 416 | 1,652 |
Other comprehensive income (loss), before tax | 0 | 545 | 2,174 |
Other comprehensive income (loss), tax | 0 | (129) | (522) |
Total other comprehensive income (loss), net of tax | 0 | 416 | 1,652 |
Foreign currency items | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications, before tax | 2,742 | (6,133) | 20 |
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | $ 2,742 | $ (6,133) | $ 20 |
Other Comprehensive Income an_4
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") - AOCI Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, attributable to parent | $ 3,058,759 | ||
Other comprehensive income (loss), before tax | (268) | $ 5,252 | $ 18,732 |
Other comprehensive income (loss), tax | 723 | (2,733) | (4,490) |
Total other comprehensive income (loss), net of tax | 455 | 2,519 | $ 14,242 |
Ending balance, attributable to parent | $ 3,310,036 | $ 3,058,759 | |
Statutory income tax rate | 24% | 24% | 24% |
Southwest Gas Corporation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 2,569,175 | $ 2,527,937 | |
Beginning balance, attributable to parent | 2,569,175 | ||
Other comprehensive income (loss), before tax | (3,010) | 11,385 | $ 18,712 |
Other comprehensive income (loss), tax | 723 | (2,733) | (4,490) |
Total other comprehensive income (loss), net of tax | (2,287) | 8,652 | 14,222 |
Ending balance | 3,183,615 | 2,569,175 | 2,527,937 |
Ending balance, attributable to parent | $ 3,183,615 | 2,569,175 | |
Statutory income tax rate | 24% | ||
Defined Benefit Plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, before tax | $ (50,342) | ||
Beginning balance, tax | 12,081 | ||
Beginning balance | (38,261) | ||
Other comprehensive income (loss) before reclassifications, before tax | (3,188) | ||
Other comprehensive income (loss) before reclassifications, tax | 765 | ||
Other comprehensive income (loss) before reclassifications, net of tax | (2,423) | ||
Other comprehensive income (loss), before tax | (3,010) | ||
Other comprehensive income (loss), tax | 723 | ||
Total other comprehensive income (loss), net of tax | (2,287) | ||
Ending balance, before tax | (53,352) | (50,342) | |
Ending balance, tax | 12,804 | 12,081 | |
Ending balance | (40,548) | (38,261) | |
Defined Benefit Plans | Southwest Gas Corporation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, attributable to parent, before tax | (50,342) | ||
Beginning balance, attributable to parent, tax | 12,081 | ||
Beginning balance, attributable to parent | (38,261) | ||
Other comprehensive income (loss) before reclassifications, before tax | (3,188) | ||
Other comprehensive income (loss) before reclassifications, tax | 765 | ||
Other comprehensive income (loss) before reclassifications, net of tax | (2,423) | ||
Other comprehensive income (loss), before tax | (3,010) | 10,840 | 16,538 |
Other comprehensive income (loss), tax | 723 | (2,604) | (3,968) |
Total other comprehensive income (loss), net of tax | (2,287) | 8,236 | 12,570 |
Ending balance, attributable to parent, before tax | (53,352) | (50,342) | |
Ending balance, attributable to parent, tax | 12,804 | 12,081 | |
Ending balance, attributable to parent | (40,548) | (38,261) | |
Amortization of prior service cost | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss), before tax | 175 | ||
Other comprehensive income (loss), tax | (42) | ||
Total other comprehensive income (loss), net of tax | 133 | ||
Amortization of prior service cost | Southwest Gas Corporation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification from AOCI, before Tax | 175 | 175 | 959 |
Reclassification from AOCI, tax | (42) | (42) | (230) |
Reclassification from AOCI, net of tax | 133 | 133 | 729 |
Amortization of net actuarial loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss), before tax | 1,333 | ||
Other comprehensive income (loss), tax | (319) | ||
Total other comprehensive income (loss), net of tax | 1,014 | ||
Amortization of net actuarial loss | Southwest Gas Corporation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications, before tax | (3,188) | 4,079 | 59,176 |
Other comprehensive income (loss) before reclassifications, tax | 765 | (980) | (14,202) |
Reclassification from AOCI, before Tax | 1,333 | 34,818 | 44,597 |
Reclassification from AOCI, tax | (319) | (8,357) | (10,703) |
Reclassification from AOCI, net of tax | 1,014 | 26,461 | 33,894 |
Other comprehensive income (loss) before reclassifications, net of tax | (2,423) | 3,099 | 44,974 |
Regulatory adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss), before tax | (1,330) | ||
Other comprehensive income (loss), tax | 319 | ||
Total other comprehensive income (loss), net of tax | (1,011) | ||
Regulatory adjustment | Southwest Gas Corporation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications, before tax | (1,330) | (28,232) | (88,194) |
Other comprehensive income (loss) before reclassifications, tax | 319 | 6,775 | 21,167 |
Other comprehensive income (loss) before reclassifications, net of tax | (1,011) | (21,457) | (67,027) |
Other comprehensive income (loss), before tax | (1,330) | ||
Other comprehensive income (loss), tax | 319 | ||
Total other comprehensive income (loss), net of tax | (1,011) | ||
Foreign Currency Items | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, before tax | (5,981) | ||
Beginning balance, tax | 0 | ||
Beginning balance | (5,981) | ||
Other comprehensive income (loss) before reclassifications, before tax | 2,742 | ||
Other comprehensive income (loss) before reclassifications, tax | 0 | ||
Other comprehensive income (loss) before reclassifications, net of tax | 2,742 | ||
Ending balance, before tax | (3,239) | (5,981) | |
Ending balance, tax | 0 | 0 | |
Ending balance | (3,239) | (5,981) | |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications, net of tax | 455 | ||
AOCI Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (44,242) | (46,761) | (61,003) |
Ending balance | (43,787) | (44,242) | (46,761) |
AOCI Attributable to Parent | Southwest Gas Corporation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (38,261) | (46,913) | (61,135) |
Ending balance | $ (40,548) | $ (38,261) | $ (46,913) |
Other Comprehensive Income an_5
Other Comprehensive Income and Accumulated Other Comprehensive Income ("AOCI") - Amount Recognized Before Income Tax Associated with Defined Benefit Plans in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Equity [Abstract] | ||
Net actuarial loss | $ (361,968) | $ (360,113) |
Prior service cost | (1,178) | (1,353) |
Less: amount recognized in regulatory assets | 309,794 | 311,124 |
Recognized in AOCI | $ (53,352) | $ (50,342) |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2023 | Apr. 08, 2021 | |
Class of Stock [Line Items] | |||
Sale of stock, number of shares (in shares) | 4,100 | ||
Sale of stock, price per share (in USD per share) | $ 60.12 | ||
Net proceeds from sale of stock | $ 238,400,000 | ||
Sale of stock, underwriters' discount | $ 8,300,000 | ||
Significant stockholder, ownership benchmark percentage | 15% | ||
Shares registered and available for issuance (in shares) | 3,400 | ||
Restricted Stock/Unit Plan and Management Incentive Plan | |||
Class of Stock [Line Items] | |||
Common stock issued (in shares) | 68 | ||
Dividend Reinvestment and Stock Purchase Plan | |||
Class of Stock [Line Items] | |||
Common stock issued (in shares) | 264 | ||
Common stock issued, amount | $ 15,200,000 | ||
Certain Funds Affiliated With Carl C. Icahn | |||
Class of Stock [Line Items] | |||
Sale of stock, number of shares (in shares) | 2,300 | ||
Net proceeds from sale of stock | $ 140,000,000 | ||
Equity Shelf Program | |||
Class of Stock [Line Items] | |||
Sale of stock, amount of common stock offered for sale (up to) | $ 500,000,000 |
Common Stock - Activity of Equi
Common Stock - Activity of Equity Shelf Program (Details) - USD ($) | 12 Months Ended | 33 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Class of Stock [Line Items] | ||||
Net proceeds | $ 251,759,000 | $ 461,828,000 | $ 213,641,000 | |
Equity Shelf Program | ||||
Class of Stock [Line Items] | ||||
Gross proceeds | $ 158,180,343 | |||
Less: agent commissions | (1,581,803) | |||
Net proceeds | $ 156,598,540 | |||
Number of shares sold (in shares) | 2,302,407 | |||
Weighted average price per share (in USD per share) | $ 68.70 |
Debt - Schedule of Carrying Amo
Debt - Schedule of Carrying Amounts and Estimated Fair Values of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Less: current maturities | $ (42,552) | $ (44,557) | |
Long-term debt, less current maturities | 4,609,838 | 4,403,299 | |
Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Total | 1,057,500 | ||
Long-term debt, less current maturities | 3,501,543 | 3,251,296 | |
Debentures | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Total | $ 1,057,500 | ||
Debentures | 8% Series, due 2026 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 8% | ||
Debentures | Medium-term notes, 7.92% series, due 2027 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 7.92% | ||
Debentures | Medium-term notes, 6.76% series, due 2027 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.76% | ||
Debentures | Notes, 5.8%, due 2027 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 5.80% | ||
Debentures | Notes, 3.7%, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.70% | ||
Debentures | Notes, 5.45%, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 5.45% | 5.45% | |
Debentures | Notes, 2.2%, due 2030 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 2.20% | ||
Debentures | Notes, 4.05%, due 2032 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.05% | ||
Debentures | Notes, 6.1%, due 2041 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.10% | ||
Debentures | Notes, 4.875%, due 2043 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.875% | ||
Debentures | Notes, 3.8%, due 2046 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.80% | ||
Debentures | Notes, 4.15%, due 2049 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.15% | ||
Debentures | Notes, 3.18%, due 2051 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.18% | ||
Revolving credit facility and commercial paper | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Total | $ 0 | ||
Carrying Amount | |||
Debt Instrument [Line Items] | |||
Unamortized discount and debt issuance costs | (17,111) | (20,789) | |
Less: current maturities | (42,552) | (44,557) | |
Long-term debt, less current maturities | 4,609,838 | 4,403,299 | |
Carrying Amount | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Less: current maturities | 0 | 0 | |
Long-term debt, less current maturities | 3,501,543 | 3,251,296 | |
Carrying Amount | Debentures | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unamortized discount and debt issuance costs | (29,594) | (29,471) | |
Total | 3,302,906 | 3,003,029 | |
Carrying Amount | Debentures | 8% Series, due 2026 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 75,000 | 75,000 | |
Carrying Amount | Debentures | Medium-term notes, 7.92% series, due 2027 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 25,000 | 25,000 | |
Carrying Amount | Debentures | Medium-term notes, 6.76% series, due 2027 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 7,500 | 7,500 | |
Carrying Amount | Debentures | Notes, 5.8%, due 2027 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 300,000 | 300,000 | |
Carrying Amount | Debentures | Notes, 3.7%, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 300,000 | 300,000 | |
Carrying Amount | Debentures | Notes, 5.45%, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 300,000 | 0 | |
Carrying Amount | Debentures | Notes, 2.2%, due 2030 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 450,000 | 450,000 | |
Carrying Amount | Debentures | Notes, 4.05%, due 2032 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 600,000 | 600,000 | |
Carrying Amount | Debentures | Notes, 6.1%, due 2041 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 125,000 | 125,000 | |
Carrying Amount | Debentures | Notes, 4.875%, due 2043 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 250,000 | 250,000 | |
Carrying Amount | Debentures | Notes, 3.8%, due 2046 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 300,000 | 300,000 | |
Carrying Amount | Debentures | Notes, 4.15%, due 2049 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 300,000 | 300,000 | |
Carrying Amount | Debentures | Notes, 3.18%, due 2051 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 300,000 | 300,000 | |
Carrying Amount | Revolving credit facility and commercial paper | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Total | 0 | 50,000 | |
Carrying Amount | Industrial development revenue bonds | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Unamortized discount and debt issuance costs | (1,363) | (1,733) | |
Total | 198,637 | 198,267 | |
Carrying Amount | Industrial development revenue bonds | Tax-exempt Series A, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 50,000 | 50,000 | |
Carrying Amount | Industrial development revenue bonds | 2003 Series A, due 2038 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 50,000 | 50,000 | |
Carrying Amount | Industrial development revenue bonds | 2008 Series A, due 2038 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 50,000 | 50,000 | |
Carrying Amount | Industrial development revenue bonds | 2009 Series A, due 2039 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 50,000 | 50,000 | |
Carrying Amount | Secured Debt | Centuri | Centuri secured revolving credit facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 77,121 | 81,955 | |
Carrying Amount | Secured Debt | Centuri secured term loan facility | Centuri | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 994,238 | 1,008,550 | |
Carrying Amount | Other debt obligations | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 96,599 | 126,844 | |
Fair Value | Debentures | 8% Series, due 2026 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 79,502 | 80,027 | |
Fair Value | Debentures | Medium-term notes, 7.92% series, due 2027 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 26,883 | 26,840 | |
Fair Value | Debentures | Medium-term notes, 6.76% series, due 2027 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 7,800 | 7,662 | |
Fair Value | Debentures | Notes, 5.8%, due 2027 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 309,180 | 305,913 | |
Fair Value | Debentures | Notes, 3.7%, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 285,300 | 275,043 | |
Fair Value | Debentures | Notes, 5.45%, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 307,170 | 0 | |
Fair Value | Debentures | Notes, 2.2%, due 2030 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 382,635 | 353,763 | |
Fair Value | Debentures | Notes, 4.05%, due 2032 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 563,940 | 527,052 | |
Fair Value | Debentures | Notes, 6.1%, due 2041 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 126,238 | 113,184 | |
Fair Value | Debentures | Notes, 4.875%, due 2043 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 214,050 | 195,703 | |
Fair Value | Debentures | Notes, 3.8%, due 2046 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 225,240 | 209,169 | |
Fair Value | Debentures | Notes, 4.15%, due 2049 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 236,370 | 218,712 | |
Fair Value | Debentures | Notes, 3.18%, due 2051 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 197,760 | 185,523 | |
Fair Value | Revolving credit facility and commercial paper | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Total | 0 | 50,000 | |
Fair Value | Industrial development revenue bonds | Tax-exempt Series A, due 2028 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 50,000 | 50,000 | |
Fair Value | Industrial development revenue bonds | 2003 Series A, due 2038 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 50,000 | 50,000 | |
Fair Value | Industrial development revenue bonds | 2008 Series A, due 2038 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 50,000 | 50,000 | |
Fair Value | Industrial development revenue bonds | 2009 Series A, due 2039 | Southwest Gas Corporation | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 50,000 | 50,000 | |
Fair Value | Secured Debt | Centuri | Centuri secured revolving credit facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 77,205 | 82,315 | |
Fair Value | Secured Debt | Centuri secured term loan facility | Centuri | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 996,723 | 995,852 | |
Fair Value | Other debt obligations | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 92,209 | $ 118,314 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Feb. 14, 2023 | Sep. 26, 2022 | Apr. 30, 2023 | Jan. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Aug. 27, 2021 | |
Debt Instrument [Line Items] | |||||||||
Current maturities of long-term debt | $ 42,552,000 | $ 44,557,000 | |||||||
Short-term debt | 628,500,000 | 1,542,806,000 | |||||||
SWH term loan facility | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings outstanding under facility | 1,147,000,000 | ||||||||
Debt instrument face amount | $ 1,600,000,000 | ||||||||
Debt instrument, term | 364 days | ||||||||
Proceeds from debt | $ 1,075,000,000 | ||||||||
Repayments of debt | $ 72,000,000 | ||||||||
$550 Million Term Loan Credit Agreement Due October 2024 | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 550,000,000 | ||||||||
SOFR | $550 Million Term Loan Credit Agreement Due October 2024 | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 1.30% | ||||||||
Debt interest adjustment rate | 0.10% | ||||||||
Debt floor interest rate | 0% | ||||||||
Alternative Base Rate | $550 Million Term Loan Credit Agreement Due October 2024 | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 0.30% | ||||||||
Debt floor interest rate | 1% | ||||||||
Southwest Gas Corporation | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | 1,057,500,000 | ||||||||
Debt covenant, additional debt amount could be issued | 3,900,000,000 | ||||||||
Debt covenant, equity cushion relating to minimum net worth requirement | 2,600,000,000 | ||||||||
Short-term debt | 0 | 225,000,000 | |||||||
Southwest Gas Corporation | Debentures | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt outstanding | $ 1,057,500,000 | ||||||||
Southwest Gas Corporation | Notes, 5.45%, due 2028 | Debentures | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 300,000,000 | ||||||||
Debt instrument, stated interest rate | 5.45% | 5.45% | |||||||
Southwest Gas Corporation | $250 Million Term Loan (March 2021 Term Loan) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 250,000,000 | ||||||||
Southwest Gas Corporation | $450 Million Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 450,000,000 | ||||||||
Debt instrument, term | 364 days | ||||||||
Centuri | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt covenant, additional debt amount could be issued | $ 108,000,000 | ||||||||
Debt covenant, equity cushion relating to minimum fixed charge ratio coverage requirement | $ 15,000,000 | ||||||||
Debt covenant, dividend restriction calculation, percentage of net income | 50% | ||||||||
Debt covenant, dividend restriction calculation, period | 12 months | ||||||||
Centuri | Centuri Secured Term Loan Facility And Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility maximum borrowing capacity | $ 1,545,000,000 | ||||||||
Borrowings outstanding under facility | $ 1,071,000,000 | ||||||||
Effective interest rates | 8% | ||||||||
Centuri | Centuri secured term loan facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility maximum borrowing capacity | $ 1,145,000,000 | ||||||||
Centuri | SOFR | Centuri secured term loan facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 2.50% | ||||||||
Centuri | Alternative Base Rate | Centuri secured term loan facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 1.50% | ||||||||
Centuri | Minimum | Centuri Secured Term Loan Facility And Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percentage | 0.15% | ||||||||
Centuri | Maximum | Centuri Secured Term Loan Facility And Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percentage | 0.35% | ||||||||
$400 Million Credit Facility | Southwest Gas Corporation | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility maximum borrowing capacity | $ 400,000,000 | ||||||||
Line of credit designated as long term debt | 150,000,000 | ||||||||
Line of credit designated for working capital purposes | $ 250,000,000 | ||||||||
Debt covenant, ratio of funded debt to total capitalization | 0.70 | ||||||||
Long-term debt outstanding | $ 0 | ||||||||
Current maturities of long-term debt | 0 | ||||||||
Short-term debt | $ 0 | 0 | |||||||
$400 Million Credit Facility | Southwest Gas Corporation | SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 1.125% | ||||||||
$400 Million Credit Facility | Southwest Gas Corporation | Alternative Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 0.125% | ||||||||
$400 Million Credit Facility | Southwest Gas Corporation | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percentage | 0.075% | ||||||||
$400 Million Credit Facility | Southwest Gas Corporation | Minimum | SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 0.75% | ||||||||
$400 Million Credit Facility | Southwest Gas Corporation | Minimum | Alternative Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 0% | ||||||||
$400 Million Credit Facility | Southwest Gas Corporation | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percentage | 0.20% | ||||||||
$400 Million Credit Facility | Southwest Gas Corporation | Maximum | SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 1.50% | ||||||||
$400 Million Credit Facility | Southwest Gas Corporation | Maximum | Alternative Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 0.50% | ||||||||
Commercial Paper Program | Southwest Gas Corporation | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility maximum borrowing capacity | $ 50,000,000 | ||||||||
Borrowings outstanding under facility | 0 | ||||||||
Revolving Credit Facility | Centuri | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility maximum borrowing capacity | $ 400,000,000 | ||||||||
Debt secured by assets | $ 2,500,000,000 | ||||||||
Revolving Credit Facility | Centuri | Line of Credit | Debt Instrument, Covenant, Period One | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt covenant, minimum interest coverage ratio | 2 | ||||||||
Debt covenant, net leverage ratio | 5.50 | ||||||||
Revolving Credit Facility | Centuri | Line of Credit | Debt Instrument, Covenant, Period Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt covenant, minimum interest coverage ratio | 2.50 | ||||||||
Debt covenant, net leverage ratio | 5 | ||||||||
Revolving Credit Facility | Centuri | Line of Credit | Debt Instrument, Covenant, Period Three | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt covenant, net leverage ratio | 4 | ||||||||
Revolving Credit Facility | Centuri | Minimum | SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 1% | ||||||||
Revolving Credit Facility | Centuri | Minimum | CDOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 0% | ||||||||
Revolving Credit Facility | Centuri | Maximum | SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 2.50% | ||||||||
Revolving Credit Facility | Centuri | Maximum | CDOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 1.50% | ||||||||
$300 Million Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum commitment amount | $ 300,000,000 | ||||||||
Short-term debt | $ 78,500,000 | $ 173,000,000 | |||||||
Weighted average interest rate | 6.638% | 5.588% | |||||||
$300 Million Credit Facility | SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 1.25% | ||||||||
$300 Million Credit Facility | Alternative Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, basis spread on variable rate | 0.25% |
Debt - Summary of Effective Int
Debt - Summary of Effective Interest Rates on Variable-Rate IDRBs (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
2003 Series A, due 2038 | ||
Debt Instrument [Line Items] | ||
Effective interest rates | 5.03% | 4.68% |
2008 Series A, due 2038 | ||
Debt Instrument [Line Items] | ||
Effective interest rates | 4.89% | 4.84% |
2009 Series A, due 2039 | ||
Debt Instrument [Line Items] | ||
Effective interest rates | 4.65% | 4.67% |
Tax-exempt Series A, due 2028 | ||
Debt Instrument [Line Items] | ||
Effective interest rates | 4.73% | 4.30% |
Debt - Estimated Maturities of
Debt - Estimated Maturities of Long-Term Debt (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Southwest Gas Corporation | |
Debt Instrument [Line Items] | |
2024 | $ 0 |
2025 | 0 |
2026 | 75,000 |
2027 | 332,500 |
2028 | 650,000 |
Total | 1,057,500 |
Southwest Gas Corporation | Debentures | |
Debt Instrument [Line Items] | |
2024 | 0 |
2025 | 0 |
2026 | 75,000 |
2027 | 332,500 |
2028 | 650,000 |
Total | 1,057,500 |
Southwest Gas Corporation | Revolving credit facility and commercial paper | |
Debt Instrument [Line Items] | |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Total | 0 |
Southwest Gas Holdings, Inc. | |
Debt Instrument [Line Items] | |
2024 | 42,551 |
2025 | 41,004 |
2026 | 192,222 |
2027 | 351,243 |
2028 | 1,598,438 |
Total | 2,225,458 |
Southwest Gas Holdings, Inc. | Secured Debt | Centuri secured revolving credit facility | |
Debt Instrument [Line Items] | |
2024 | 0 |
2025 | 0 |
2026 | 77,121 |
2027 | 0 |
2028 | 0 |
Total | 77,121 |
Southwest Gas Holdings, Inc. | Secured Debt | Centuri secured term loan facility | |
Debt Instrument [Line Items] | |
2024 | 11,450 |
2025 | 11,450 |
2026 | 11,450 |
2027 | 11,450 |
2028 | 948,438 |
Total | 994,238 |
Southwest Gas Holdings, Inc. | Other debt obligations | |
Debt Instrument [Line Items] | |
2024 | 31,101 |
2025 | 29,554 |
2026 | 28,651 |
2027 | 7,293 |
2028 | 0 |
Total | $ 96,599 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Plan Compensation Expense, Including Cash Award (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Share-based compensation plan expense, net of related tax benefits | $ 5,147 | $ 6,225 | $ 5,747 |
Share-based compensation plan related tax benefits | $ 1,625 | $ 1,966 | $ 1,815 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 8,079 | $ 9,446 | $ 9,294 |
Compensation cost related to nonvested management incentive plan shares, performance shares, and restricted stock/units not yet recognized | $ 12,300 | ||
Compensation cost not yet recognized, period for recognition | 2 years 1 month 6 days | ||
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in USD per share) | $ 62.78 | ||
Restricted Stock Units/Director Deferred Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in USD per share) | $ 62.83 | ||
Restricted Stock Units/Director Deferred Stock Units | Vesting Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 40% | ||
Restricted Stock Units/Director Deferred Stock Units | Vesting Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 30% | ||
Restricted Stock Units/Director Deferred Stock Units | Vesting Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 30% | ||
Performance Share Units and Restricted Stock/Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in USD per share) | $ 66.11 | $ 65.38 | |
Omnibus Incentive Plan | Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance measurement period | 3 years | ||
Compensation expense | $ 1,100 | $ 2,100 | $ 3,400 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Nonvested Performance and Restricted Stock Unit Plans (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Performance Share Units | |
Restricted Stock/ Units | |
Nonvested/unissued at beginning of year (in shares) | shares | 283 |
Granted (in shares) | shares | 167 |
Dividends (in shares) | shares | 7 |
Forfeited or expired (in shares) | shares | (71) |
Vested and issued (in shares) | shares | (35) |
Nonvested/unissued at year end (in shares) | shares | 351 |
Weighted-average grant date fair value | |
Beginning balance (in USD per share) | $ / shares | $ 68 |
Granted (in USD per share) | $ / shares | 62.78 |
Dividends (in USD per share) | $ / shares | 0 |
Forfeited or expired (in USD per share) | $ / shares | 71.65 |
Vested and issued (in USD per share) | $ / shares | 73.41 |
Ending balance (in USD per share) | $ / shares | $ 62.95 |
Restricted Stock Units/Director Deferred Stock Units | |
Restricted Stock/ Units | |
Nonvested/unissued at beginning of year (in shares) | shares | 177 |
Granted (in shares) | shares | 80 |
Dividends (in shares) | shares | 9 |
Forfeited or expired (in shares) | shares | 0 |
Vested and issued (in shares) | shares | (58) |
Nonvested/unissued at year end (in shares) | shares | 208 |
Weighted-average grant date fair value | |
Beginning balance (in USD per share) | $ / shares | $ 58.50 |
Granted (in USD per share) | $ / shares | 62.83 |
Dividends (in USD per share) | $ / shares | 0 |
Forfeited or expired (in USD per share) | $ / shares | 0 |
Vested and issued (in USD per share) | $ / shares | 63.45 |
Ending balance (in USD per share) | $ / shares | $ 56.29 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Dec. 31, 2023 USD ($) |
Southwest Gas Corporation | |
Loss Contingencies [Line Items] | |
Self-insured retention amount associated with general liability claims | $ 1,000,000 |
Additional self-insured retention amount of general liability | 4,000,000 |
Centuri | |
Loss Contingencies [Line Items] | |
Self-insured retention amount associated with general liability claims | $ 750,000 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) plan | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2024 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Deferred compensation plan, payment term, option one | 10 years | |||
Deferred compensation plan, payment term, option two | 15 years | |||
Deferred compensation plan, payment term, option three | 20 years | |||
Defined benefit plan, funded percentage | 94% | |||
Future estimated funding amount | $ 23,000,000 | |||
Multiemployer plan, contributions by employer | 3,800,000 | $ 3,800,000 | $ 0 | |
Multiemployer plan, special surcharges | $ 0 | |||
Multiemployer pension plans, number of critical plans | plan | 9 | |||
Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, assets allocation, percentage | 50% | |||
Fixed Income Investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, assets allocation, percentage | 50% | |||
Hedge Funds | Subsequent Event | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets, target allocation, percentage | 90% | |||
Maximum | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets, target allocation, percentage | 75% | |||
Minimum | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets, target allocation, percentage | 25% | |||
Qualified Retirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Future estimated funding amount | $ 20,000,000 | |||
PBOP | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Per capita cost of covered health care benefits medical rate trend assumption | 6% | |||
PBOP | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Per capita cost of covered health care benefits medical rate trend assumption | 4.50% | |||
Southwest Gas Corporation | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
EIP, percent of compensation deferred with match | 50% | |||
EIP, employer matching contribution, percent of match | 3% | |||
EIP, employer matching contribution, percent of employees' eligible compensation | 7% | |||
Employee investment plan cost | $ 8,300,000 | 6,900,000 | 6,100,000 | |
Deferred compensation plan, maximum percentage of salary deferral | 100% | |||
Deferred compensation plan, matching percentage | 3.50% | |||
Deferred Compensation Plan, percent of amount deferred with match | 50% | |||
Period of additional option to receive payment | 5 years | |||
Deferred compensation, percentage of multiple interest rate | 150% | |||
Increments of change to the discount rate | 0.25% | |||
Decrease of discount rate | 0.25% | |||
Increase of weighted-average rate of compensation | 0.25% | |||
Southwest Gas Corporation | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
EIP, employer matching contribution, percent of match | 3.50% | |||
Centuri | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Deferred compensation plan, maximum percentage of salary deferral | 80% | |||
Deferred compensation plan, matching percentage | 5% | |||
Defined contribution plans, employer contribution amount | $ 15,000,000 | 13,000,000 | 9,000,000 | |
Deferred compensation plan, percentage of contributions with matching | 100% | |||
Deferred compensation plan, vesting percentage of deferral | 100% | |||
Multiemployer plan, contributions by employer | $ 75,700,000 | $ 71,000,000 | $ 57,400,000 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Schedule of Assumptions Used (Details) - Southwest Gas Corporation | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5% | 5.25% |
Weighted-average rate of compensation increase | 3.50% | 3.25% |
Asset return assumption | 6.75% | 6.75% |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Schedule of Amounts Recognized in Balance Sheet and Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in plan assets: | |||
Market value of plan assets at beginning of year | $ 1,068,503 | ||
Market value of plan assets at end of year | 1,202,292 | $ 1,068,503 | |
Qualified Retirement Plan | |||
Change in benefit obligations: | |||
Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) | 1,159,451 | 1,531,197 | |
Service cost | 25,840 | 44,110 | $ 41,159 |
Interest cost | 59,165 | 45,006 | 40,432 |
Actuarial loss (gain) | 62,109 | (399,066) | |
Benefits paid | (65,388) | (61,796) | |
Benefit obligation at end of year (PBO/PBO/APBO) | 1,241,177 | 1,159,451 | 1,531,197 |
Change in plan assets: | |||
Market value of plan assets at beginning of year | 1,030,044 | 1,366,043 | |
Actual return on plan assets | 145,716 | (330,203) | |
Employer contributions | 56,000 | 56,000 | |
Benefits paid | (65,388) | (61,796) | |
Market value of plan assets at end of year | 1,166,372 | 1,030,044 | 1,366,043 |
Funded status at year end | $ (74,805) | $ (129,407) | |
Weighted-average assumptions (benefit obligation): | |||
Discount rate | 5% | 5.25% | |
Weighted-average rate of compensation increase | 3.50% | 3.25% | |
SERP | |||
Change in benefit obligations: | |||
Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) | $ 42,097 | $ 49,530 | |
Service cost | 250 | 424 | 526 |
Interest cost | 2,123 | 1,441 | 1,431 |
Actuarial loss (gain) | 3,995 | (6,134) | |
Benefits paid | (3,434) | (3,164) | |
Benefit obligation at end of year (PBO/PBO/APBO) | 45,031 | 42,097 | 49,530 |
Change in plan assets: | |||
Market value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 3,434 | 3,164 | |
Benefits paid | (3,434) | (3,164) | |
Market value of plan assets at end of year | 0 | 0 | 0 |
Funded status at year end | $ (45,031) | $ (42,097) | |
Weighted-average assumptions (benefit obligation): | |||
Discount rate | 5% | 5.25% | |
Weighted-average rate of compensation increase | 3.50% | 3.25% | |
PBOP | |||
Change in benefit obligations: | |||
Benefit obligation for service rendered to date at beginning of year (PBO/PBO/APBO) | $ 65,437 | $ 84,226 | |
Service cost | 1,269 | 1,941 | 1,691 |
Interest cost | 3,302 | 2,452 | 2,193 |
Actuarial loss (gain) | 941 | (18,260) | |
Benefits paid | (4,940) | (4,922) | |
Benefit obligation at end of year (PBO/PBO/APBO) | 66,009 | 65,437 | 84,226 |
Change in plan assets: | |||
Market value of plan assets at beginning of year | 38,459 | 52,168 | |
Actual return on plan assets | 4,626 | (6,036) | |
Employer contributions | 0 | 0 | |
Benefits paid | (7,165) | (7,673) | |
Market value of plan assets at end of year | 35,920 | 38,459 | $ 52,168 |
Funded status at year end | $ (30,089) | $ (26,978) | |
Weighted-average assumptions (benefit obligation): | |||
Discount rate | 5% | 5.25% |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Schedule of Accumulated Benefit Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Retirement plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 1,143,204 | $ 1,074,493 |
SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 40,635 | $ 39,263 |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Schedule of Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 68 |
2025 | 69 |
2026 | 70 |
2027 | 72 |
2028 | 73 |
2029-2033 | 389 |
SERP | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 3.4 |
2025 | 3.3 |
2026 | 3.3 |
2027 | 3.2 |
2028 | 3.2 |
2029-2033 | 15.4 |
PBOP | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 4.9 |
2025 | 4.9 |
2026 | 5 |
2027 | 5 |
2028 | 5 |
2029-2033 | $ 25.1 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Schedule of Net Periodic Benefit Cost and Weighted-Average Assumptions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | $ 6,972 | $ 47,226 | $ 57,397 |
Qualified Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 25,840 | 44,110 | 41,159 |
Interest cost | 59,165 | 45,006 | 40,432 |
Expected return on plan assets | (84,062) | (79,913) | (72,352) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net actuarial loss | 336 | 32,468 | 41,955 |
Net periodic benefit cost | $ 1,279 | $ 41,671 | $ 51,194 |
Weighted-average assumptions (net benefit cost) | |||
Discount rate | 5.25% | 3% | 2.75% |
Expected return on plan assets | 6.75% | 6.50% | 6.50% |
Weighted-average rate of compensation increase | 3.25% | 3.25% | 3% |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 250 | $ 424 | $ 526 |
Interest cost | 2,123 | 1,441 | 1,431 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net actuarial loss | 998 | 2,350 | 2,642 |
Net periodic benefit cost | $ 3,371 | $ 4,215 | $ 4,599 |
Weighted-average assumptions (net benefit cost) | |||
Discount rate | 5.25% | 3% | 2.75% |
Weighted-average rate of compensation increase | 3.25% | 3.25% | 3% |
PBOP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1,269 | $ 1,941 | $ 1,691 |
Interest cost | 3,302 | 2,452 | 2,193 |
Expected return on plan assets | (2,424) | (3,228) | (3,239) |
Amortization of prior service cost | 175 | 175 | 959 |
Amortization of net actuarial loss | 0 | 0 | 0 |
Net periodic benefit cost | $ 2,322 | $ 1,340 | $ 1,604 |
Weighted-average assumptions (net benefit cost) | |||
Discount rate | 5.25% | 3% | 2.75% |
Expected return on plan assets | 6.75% | 6.50% | 6.50% |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ 3,188 | $ (4,079) | $ (59,176) |
Amortization of prior service cost | (175) | (175) | (959) |
Amortization of net actuarial loss | (1,333) | (34,818) | (44,597) |
Regulatory adjustment | 1,330 | 28,232 | 88,194 |
Recognized in other comprehensive (income) loss | 3,010 | (10,840) | (16,538) |
Net periodic benefit costs recognized in net income | 6,972 | 47,226 | 57,397 |
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss | 9,982 | 36,386 | 40,859 |
Qualified Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 455 | 11,049 | (54,892) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net actuarial loss | (335) | (32,468) | (41,955) |
Regulatory adjustment | (107) | 19,062 | 86,196 |
Recognized in other comprehensive (income) loss | 13 | (2,357) | (10,651) |
Net periodic benefit costs recognized in net income | 1,279 | 41,671 | 51,194 |
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss | 1,292 | 39,314 | 40,543 |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 3,995 | (6,133) | (3,245) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net actuarial loss | (998) | (2,350) | (2,642) |
Regulatory adjustment | 0 | 0 | 0 |
Recognized in other comprehensive (income) loss | 2,997 | (8,483) | (5,887) |
Net periodic benefit costs recognized in net income | 3,371 | 4,215 | 4,599 |
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss | 6,368 | (4,268) | (1,288) |
PBOP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | (1,262) | (8,995) | (1,039) |
Amortization of prior service cost | (175) | (175) | (959) |
Amortization of net actuarial loss | 0 | 0 | 0 |
Regulatory adjustment | 1,437 | 9,170 | 1,998 |
Recognized in other comprehensive (income) loss | 0 | 0 | 0 |
Net periodic benefit costs recognized in net income | 2,322 | 1,340 | 1,604 |
Total of amount recognized in net periodic benefit cost and other comprehensive (income) loss | $ 2,322 | $ 1,340 | $ 1,604 |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Schedule of Fair Value of Plan Assets (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) d | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 1,202,292 | $ 1,068,503 | |
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, shares redeemed with notice, period | d | 1 | ||
Equity Securities | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, target allocation, percentage | 75% | ||
Equity Securities | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, target allocation, percentage | 25% | ||
Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 1,199,992 | 1,066,127 | |
Level 1 – Quoted prices in active markets for identical financial assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 34,891 | 31,631 | |
Level 1 – Quoted prices in active markets for identical financial assets | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 34,891 | 31,631 | |
Level 2 – Significant other observable inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1,165,101 | 1,034,496 | |
Level 2 – Significant other observable inputs | Global | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 234,220 | 268,041 | |
Level 2 – Significant other observable inputs | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 105,952 | 118,717 | |
Level 2 – Significant other observable inputs | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 165,034 | 185,459 | |
Level 2 – Significant other observable inputs | Emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 54,511 | 62,828 | |
Level 2 – Significant other observable inputs | Commingled trust fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 598,074 | 392,520 | |
Level 2 – Significant other observable inputs | Pooled funds and mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 7,145 | 6,771 | |
Level 2 – Significant other observable inputs | Government fixed income and mortgage backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 165 | 160 | |
Insurance company general account contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 2,300 | 2,376 | |
Qualified Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1,166,372 | 1,030,044 | $ 1,366,043 |
Qualified Retirement Plan | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1,164,072 | 1,027,668 | |
Qualified Retirement Plan | Level 1 – Quoted prices in active markets for identical financial assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Qualified Retirement Plan | Level 1 – Quoted prices in active markets for identical financial assets | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 0 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1,164,072 | 1,027,668 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | Global | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 234,123 | 266,368 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 105,908 | 117,976 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 164,966 | 184,300 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | Emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 54,489 | 62,436 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | Commingled trust fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 597,828 | 390,070 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | Pooled funds and mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 6,593 | 6,359 | |
Qualified Retirement Plan | Level 2 – Significant other observable inputs | Government fixed income and mortgage backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 165 | 159 | |
Qualified Retirement Plan | Insurance company general account contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 2,300 | 2,376 | |
PBOP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 35,920 | 38,459 | $ 52,168 |
PBOP | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 35,920 | 38,459 | |
PBOP | Level 1 – Quoted prices in active markets for identical financial assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 34,891 | 31,631 | |
PBOP | Level 1 – Quoted prices in active markets for identical financial assets | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 34,891 | 31,631 | |
PBOP | Level 2 – Significant other observable inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 1,029 | 6,828 | |
PBOP | Level 2 – Significant other observable inputs | Global | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 97 | 1,673 | |
PBOP | Level 2 – Significant other observable inputs | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 44 | 741 | |
PBOP | Level 2 – Significant other observable inputs | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 68 | 1,159 | |
PBOP | Level 2 – Significant other observable inputs | Emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 22 | 392 | |
PBOP | Level 2 – Significant other observable inputs | Commingled trust fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 246 | 2,450 | |
PBOP | Level 2 – Significant other observable inputs | Pooled funds and mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 552 | 412 | |
PBOP | Level 2 – Significant other observable inputs | Government fixed income and mortgage backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | 0 | 1 | |
PBOP | Insurance company general account contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, amount | $ 0 | $ 0 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Before Taxes and Noncontrolling Interest for Domestic and Foreign Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 176,820 | $ (302,581) | $ 221,507 |
Foreign | 20,529 | 29,244 | 25,343 |
Income (loss) before income taxes | $ 197,349 | $ (273,337) | $ 246,850 |
Income Taxes - Summary of Inc_2
Income Taxes - Summary of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 392 | $ (949) | $ (2,872) |
State | 7,960 | 7,123 | (11,516) |
Foreign | 6,566 | 9,089 | 6,524 |
Total current income tax expense | 14,918 | 15,263 | (7,864) |
Deferred: | |||
Federal | 23,009 | (76,984) | 39,117 |
State | 4,999 | (12,828) | 8,239 |
Foreign | (1,094) | (1,104) | 156 |
Total deferred income tax expense (benefit) | 26,914 | (90,916) | 47,512 |
Total income tax expense (benefit) | 41,832 | (75,653) | 39,648 |
Southwest Gas Corporation | |||
Current: | |||
Federal | (21) | (78) | (3,643) |
State | 97 | 7,805 | (6,556) |
Total current income tax expense | 76 | 7,727 | (10,199) |
Deferred: | |||
Federal | 32,776 | 23,710 | 36,842 |
State | 4,047 | (896) | 2,695 |
Total deferred income tax expense (benefit) | 36,823 | 22,814 | 39,537 |
Total income tax expense (benefit) | $ 36,899 | $ 30,541 | $ 29,338 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred federal and state: | |||
Total deferred federal and state | $ 26,914 | $ (90,897) | $ 47,564 |
Deferred ITC, net | 0 | (19) | (52) |
Total deferred income tax expense (benefit) | 26,914 | (90,916) | 47,512 |
Property-related items | |||
Deferred federal and state: | |||
Total deferred federal and state | 22,460 | 41,191 | 35,072 |
Purchased gas cost adjustments | |||
Deferred federal and state: | |||
Total deferred federal and state | (45,366) | 76,306 | 73,613 |
Employee benefits | |||
Deferred federal and state: | |||
Total deferred federal and state | 10,091 | 12,223 | (1,484) |
Regulatory adjustments | |||
Deferred federal and state: | |||
Total deferred federal and state | (28,083) | (15,482) | (10,101) |
Deferred payroll taxes | |||
Deferred federal and state: | |||
Total deferred federal and state | 0 | (6,344) | (6,344) |
Deferred revenue | |||
Deferred federal and state: | |||
Total deferred federal and state | 3,347 | 5,751 | 6,021 |
Debt-related costs | |||
Deferred federal and state: | |||
Total deferred federal and state | 4,079 | 164 | (308) |
Net operating loss | |||
Deferred federal and state: | |||
Total deferred federal and state | (25,915) | (120,704) | (64,981) |
MountainWest sale/goodwill impairment | |||
Deferred federal and state: | |||
Total deferred federal and state | 93,086 | (105,507) | 0 |
All other deferred | |||
Deferred federal and state: | |||
Total deferred federal and state | (6,785) | 21,505 | 16,076 |
Southwest Gas Corporation | |||
Deferred federal and state: | |||
Total deferred federal and state | 36,823 | 22,833 | 39,589 |
Deferred ITC, net | 0 | (19) | (52) |
Total deferred income tax expense (benefit) | 36,823 | 22,814 | 39,537 |
Southwest Gas Corporation | Property-related items | |||
Deferred federal and state: | |||
Total deferred federal and state | 38,862 | 29,633 | 23,077 |
Southwest Gas Corporation | Purchased gas cost adjustments | |||
Deferred federal and state: | |||
Total deferred federal and state | (45,366) | 76,306 | 73,613 |
Southwest Gas Corporation | Employee benefits | |||
Deferred federal and state: | |||
Total deferred federal and state | 8,937 | 5,332 | 5,508 |
Southwest Gas Corporation | Regulatory adjustments | |||
Deferred federal and state: | |||
Total deferred federal and state | (24,548) | (15,482) | (10,101) |
Southwest Gas Corporation | Deferred payroll taxes | |||
Deferred federal and state: | |||
Total deferred federal and state | 0 | (892) | (892) |
Southwest Gas Corporation | Net operating loss | |||
Deferred federal and state: | |||
Total deferred federal and state | 58,739 | (76,080) | (59,119) |
Southwest Gas Corporation | All other deferred | |||
Deferred federal and state: | |||
Total deferred federal and state | $ 199 | $ 4,016 | $ 7,503 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S Federal Statutory Rate to Consolidated Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax [Line Items] | |||
U.S. federal statutory income tax rate | 21% | 21% | 21% |
Net state taxes | 5.90% | 3.20% | 1% |
Tax credits | (0.20%) | 0.20% | (0.50%) |
Company-owned life insurance | (1.50%) | (0.80%) | (1.10%) |
Amortization of excess deferred taxes | (0.117) | 0.052 | (0.043) |
MountainWest sale | 5.10% | 0% | 0% |
Meals and entertainment expenses | 1.70% | (0.20%) | 0.30% |
All other differences | 0.90% | (0.90%) | (0.30%) |
Consolidated effective income tax rate | 21.20% | 27.70% | 16.10% |
Southwest Gas Corporation | |||
Income Tax [Line Items] | |||
U.S. federal statutory income tax rate | 21% | 21% | 21% |
Net state taxes | 1.60% | 1.60% | 0.30% |
Tax credits | (0.20%) | (0.30%) | (0.60%) |
Company-owned life insurance | (0.80%) | 0.60% | (0.90%) |
Amortization of excess deferred taxes | (0.082) | (0.069) | (0.049) |
All other differences | (0.20%) | 0.50% | (1.30%) |
Consolidated effective income tax rate | 13.20% | 16.50% | 13.60% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Deferred income taxes for future amortization of ITC and excess deferred taxes | $ 87,566 | $ 109,093 |
Employee benefits | 19,938 | 29,307 |
Net operating losses | 249,472 | 223,557 |
Lease-related item | 27,611 | 19,745 |
Goodwill impairment | 0 | 105,507 |
Other | 7,299 | 13,197 |
Valuation allowance | (1,986) | (2,197) |
Deferred tax assets, total | 389,900 | 498,209 |
Deferred tax liabilities: | ||
Property-related items, including accelerated depreciation | 896,167 | 873,328 |
Regulatory balancing accounts | 108,758 | 154,124 |
Debt-related costs | 1,714 | (2,365) |
Intangibles | 93,081 | 105,668 |
Lease-related item | 26,103 | 21,164 |
Other | 16,611 | 28,275 |
Deferred tax liabilities, gross | 1,142,434 | 1,180,194 |
Net deferred tax liabilities | 752,534 | 681,985 |
Southwest Gas Corporation | ||
Deferred tax assets: | ||
Deferred income taxes for future amortization of ITC and excess deferred taxes | 87,566 | 94,273 |
Employee benefits | (20,818) | (12,604) |
Net operating losses | 76,461 | 135,200 |
Other | 136 | 2,512 |
Deferred tax assets, total | 143,345 | 219,381 |
Deferred tax liabilities: | ||
Property-related items, including accelerated depreciation | 772,124 | 733,011 |
Regulatory balancing accounts | 108,758 | 154,124 |
Debt-related costs | 1,714 | 2,062 |
Other | 10,585 | 14,132 |
Deferred tax liabilities, gross | 893,181 | 903,329 |
Net deferred tax liabilities | $ 749,836 | $ 683,948 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Line Items] | |||
Deferred income taxes | $ 463,000 | $ 82,000 | |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 3,100,000 | ||
Tax-related interest income | 45,000 | $ 0 | $ 21,000 |
General Business Tax Credit Carryforward | |||
Income Tax Disclosure [Line Items] | |||
Tax credit carryforward | 4,400,000 | ||
Capital Loss Carryforward | |||
Income Tax Disclosure [Line Items] | |||
Tax credit carryforward | 0 | ||
Federal | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforward | 1,030,000,000 | ||
Foreign | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforward | 28,400,000 | ||
State | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforward | 541,900,000 | ||
Southwest Gas Corporation | |||
Income Tax Disclosure [Line Items] | |||
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ 2,600,000 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits at beginning of year | $ 3,072 | $ 2,629 |
Gross increases – tax positions in prior period | 45 | 389 |
Gross decreases – tax positions in prior period | (22) | 0 |
Gross increases – current period tax positions | 0 | 54 |
Unrecognized tax benefits at end of year | 3,095 | 3,072 |
Southwest Gas Corporation | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits at beginning of year | 2,644 | 2,362 |
Gross increases – tax positions in prior period | 0 | 259 |
Gross decreases – tax positions in prior period | (22) | 0 |
Gross increases – current period tax positions | 0 | 23 |
Unrecognized tax benefits at end of year | $ 2,622 | $ 2,644 |
Income Taxes - Summary of Inc_3
Income Taxes - Summary of Income Before Taxes for Continuing and Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Southwest Gas Corporation | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total income before income taxes | $ 279,125 | $ 184,921 | $ 216,473 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) segment | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | MountainWest | |||
Segment Reporting Information [Line Items] | |||
Loss on disposal adjustment | $ 28.4 | $ 21 | $ 21 |
Accrued post-closing payment | $ 7.4 | $ 7.4 | |
Net Assets, Geographic Area | Geographic Concentration Risk | United States | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 99% |
Segment Information - Accounts
Segment Information - Accounts Receivable for Services (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Accounts receivable, net of allowances | $ 886,549 | $ 866,246 |
Centuri | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable, net of allowances | 617,300 | |
Centuri | Related Party | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable, net of allowances | $ 13,017 | $ 18,067 |
Segment Information - Schedule
Segment Information - Schedule of Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 5,433,972 | $ 4,960,009 | $ 3,680,451 |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,199,178 | 4,637,557 | 3,411,018 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 234,794 | $ 322,452 | $ 269,433 |
Segment Information - Schedul_2
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 5,433,972 | $ 4,960,009 | $ 3,680,451 |
Interest income | 50,757 | 16,183 | 5,113 |
Interest expense | 292,286 | 242,750 | 119,198 |
Depreciation and amortization | 440,908 | 470,455 | 371,041 |
Income tax expense (benefit) | 41,832 | (75,653) | 39,648 |
Segment net income (loss) | 150,889 | (203,290) | 200,779 |
Segment assets | 11,869,896 | 13,196,614 | 12,765,257 |
Capital expenditures | 872,521 | 859,421 | 715,626 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,317,541 | 4,825,351 | 3,578,105 |
Intersegment sales | |||
Segment Reporting Information [Line Items] | |||
Revenues | 116,431 | 134,658 | 102,346 |
Other | |||
Segment Reporting Information [Line Items] | |||
Interest income | 0 | 0 | 0 |
Interest expense | 42,780 | 47,314 | 639 |
Depreciation and amortization | 0 | 0 | 0 |
Income tax expense (benefit) | (19,058) | (22,253) | (8,466) |
Segment net income (loss) | (94,701) | (76,002) | (26,776) |
Segment assets | 8,735 | 7,312 | 47,664 |
Capital expenditures | 0 | 0 | 0 |
Natural Gas Distribution | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,499,564 | 1,935,069 | 1,521,790 |
Natural Gas Distribution | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,499,564 | 1,935,069 | 1,521,790 |
Interest income | 50,757 | 16,183 | 5,113 |
Interest expense | 149,830 | 115,880 | 97,560 |
Depreciation and amortization | 295,462 | 263,043 | 253,398 |
Income tax expense (benefit) | 36,899 | 30,541 | 29,338 |
Segment net income (loss) | 242,226 | 154,380 | 187,135 |
Segment assets | 9,268,571 | 8,803,681 | 7,950,263 |
Capital expenditures | 762,081 | 683,131 | 601,983 |
Natural Gas Distribution | Intersegment sales | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Utility Infrastructure Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,899,276 | 2,760,327 | 2,158,661 |
Utility Infrastructure Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,782,845 | 2,625,669 | 2,056,315 |
Interest income | 0 | 0 | 0 |
Interest expense | 97,476 | 61,371 | 20,999 |
Depreciation and amortization | 145,446 | 155,353 | 117,643 |
Income tax expense (benefit) | 14,736 | 5,727 | 18,776 |
Segment net income (loss) | 19,652 | 2,065 | 40,420 |
Segment assets | 2,592,590 | 2,642,272 | 2,579,748 |
Capital expenditures | 106,650 | 130,166 | 113,643 |
Utility Infrastructure Services | Intersegment sales | |||
Segment Reporting Information [Line Items] | |||
Revenues | 116,431 | 134,658 | 102,346 |
Pipeline and Storage | |||
Segment Reporting Information [Line Items] | |||
Revenues | 35,132 | 264,613 | 0 |
Pipeline and Storage | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 35,132 | 264,613 | 0 |
Interest income | 0 | 0 | 0 |
Interest expense | 2,200 | 18,185 | 0 |
Depreciation and amortization | 0 | 52,059 | 0 |
Income tax expense (benefit) | 9,255 | (89,668) | 0 |
Segment net income (loss) | (16,288) | (283,733) | 0 |
Segment assets | 0 | 1,743,349 | 2,187,582 |
Capital expenditures | 3,790 | 46,124 | 0 |
Pipeline and Storage | Intersegment sales | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 0 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2023 | Mar. 31, 2023 | Nov. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Nov. 30, 2018 | |
Noncontrolling Interest [Line Items] | |||||||
Percentage of redeemable noncontrolling interest redeemed | 5% | ||||||
Percentage of interest retained by noncontrolling party subject to election | 100% | ||||||
Redemption value adjustments | $ (19,366) | $ (3,325) | |||||
Promissory Note | Prime Rate | |||||||
Noncontrolling Interest [Line Items] | |||||||
Debt, basis spread on variable rate | 2% | ||||||
Centuri | |||||||
Noncontrolling Interest [Line Items] | |||||||
Payments for redemption of redeemable noncontrolling interest | $ 39,900 | ||||||
Linetec | |||||||
Noncontrolling Interest [Line Items] | |||||||
Redemption value adjustments | $ (19,366) | (3,325) | |||||
Linetec | Previous Owner Of Linetec | |||||||
Noncontrolling Interest [Line Items] | |||||||
Ownership percentage by noncontrolling owners | 15% | 10% | 15% | 20% | |||
Linetec | Centuri | |||||||
Noncontrolling Interest [Line Items] | |||||||
Ownership percentage by parent | 90% | ||||||
Drum | |||||||
Noncontrolling Interest [Line Items] | |||||||
Redemption value adjustments | $ 0 | $ 0 | |||||
Drum | Certain Members Of Riggs Distler Management | |||||||
Noncontrolling Interest [Line Items] | |||||||
Ownership percentage by noncontrolling owners | 1.41% |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests - Summary of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Beginning balance | $ 159,349 | $ 196,717 |
Net income attributable to redeemable noncontrolling interests | 4,628 | 5,606 |
Redemption value adjustments | (19,366) | (3,325) |
Redemption of equity interest from noncontrolling party | (39,944) | (39,649) |
Ending balance | 104,667 | 159,349 |
Linetec | ||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Beginning balance | 146,765 | 184,148 |
Net income attributable to redeemable noncontrolling interests | 4,473 | 5,591 |
Redemption value adjustments | (19,366) | (3,325) |
Redemption of equity interest from noncontrolling party | (39,894) | (39,649) |
Ending balance | 91,978 | 146,765 |
Drum | ||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Beginning balance | 12,584 | 12,569 |
Net income attributable to redeemable noncontrolling interests | 155 | 15 |
Redemption value adjustments | 0 | 0 |
Redemption of equity interest from noncontrolling party | (50) | 0 |
Ending balance | $ 12,689 | $ 12,584 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Business Acquisition, Pro Forma Information (Details) - Riggs Distler and MountainWest acquisitions - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Business acquisition, pro forma adjustment, transaction costs | $ 48,700 | |
Business acquisition, pro forma adjustment, transaction costs, incremental interest expense | $ 48,400 | |
Total operating revenues | 4,236,000 | |
Net income attributable to Southwest Gas Holdings, Inc. | $ 278,000 | |
Basic earnings per share (in USD per Share) | $ 4.70 | |
Diluted earnings per share (in USD per Share) | $ 4.69 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Dispositions - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Goodwill impairment and loss on sale | ||||
Revision of Prior Period, Error Correction, Adjustment | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on disposal adjustment | $ (21,000) | ||||
Impairment of asset held for sale adjustment | 21,000 | ||||
Federal | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Operating loss carryforward | $ 1,030,000 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | MountainWest | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Ownership percentage disposed | 100% | ||||
Discontinued operation, consideration | $ 1,500,000 | ||||
Goodwill, accumulated impairment | 449,600 | ||||
Disposal selling costs | $ 5,819 | ||||
Loss on disposal adjustment | $ (28,400) | (21,000) | (21,000) | ||
Accrued post-closing payment | $ 7,400 | $ 7,400 | |||
Disposition related settlement payment | $ 28,400 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Schedule of Assets Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current assets held for sale | $ 1,737,530 | |
Total current liabilities, held for sale | 644,245 | $ 0 |
MountainWest | Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Regulated operations plant, net of accumulated depreciation of $907 million | 957,729 | |
Regulated operations plant, accumulated depreciation | 907,000 | |
Other property and investments | 49,546 | |
Other current assets | 188,629 | |
Goodwill, net of accumulated impairment of $449.6 million | 508,395 | |
Goodwill, accumulated impairment | 449,600 | |
Deferred charges and other assets | 39,050 | |
Total assets | 1,743,349 | |
Disposal selling costs | 5,819 | |
Other current liabilities | 55,188 | |
Long-term debt | 448,862 | |
Other deferred credits and liabilities | 140,195 | |
Total current liabilities, held for sale | 644,245 | |
Cash and cash equivalents disposed | 23,800 | |
Regulatory assets disposed | 2,200 | |
In-kind system gas imbalance disposed | 116,600 | |
Regulatory assets, included in deferred charges and other assets | 30,100 | |
Liabilities disposed related to regulatory excess deferred/other taxes and gross-up | 60,200 | |
Liabilities disposed related to accumulated removal costs | 58,800 | |
MountainWest | Disposal Group, Held-for-sale, Not Discontinued Operations | Other current liabilities | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Regulatory liabilities | 18,900 | |
MountainWest | Disposal Group, Held-for-sale, Not Discontinued Operations | Other Deferred Credits And Liabilities | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Regulatory liabilities | $ 139,000 |