Page 53 - SWGas Annual Report 2015

The following is a schedule of future minimum lease payments for significant non-cancelable operating leases (with
initial or remaining terms in excess of one year) as of December 31, 2015 (thousands of dollars):

Year Ending December 31, $ 6,836
4,732
2016 2,993
2017 2,110
2018 1,473
2019 3,583
2020
Thereafter $21,727

Total minimum lease payments

Capital Leases. Centuri leases certain construction equipment under capital leases arrangements. The amounts
associated with capital leases of equipment as of December 31, 2015 and 2014 are as follows (thousands of dollars):

December 31, 2015 2014
Capital leases of equipment $ 4,584 $5,763
Less: accumulated amortization
(1,043) (287)
Net capital leases $ 3,541 $5,476

The following is a schedule of future minimum lease payments for non-cancelable capital leases (with initial or
remaining terms in excess of one year) as of December 31, 2015 (thousands of dollars):

Year Ending December 31, $1,469
2016 869
2017 494
2018 21
2019 —
2020 —
Thereafter
2,853
Less: amount representing interest (223)
Total minimum lease payments
$2,630

Note 3 – Receivables and Related Allowances
Business activity with respect to gas utility operations is conducted with customers located within the three-state
region of Arizona, Nevada, and California. The table below contains information about the gas utility customer
accounts receivable balance (net of allowance) at December 31, 2015 and 2014, and the percentage of customers
in each of the three states.

December 31, 2015 December 31, 2014

Gas utility customer accounts receivable balance (in thousands) $151,775 $136,148

Southwest Gas Corporation