Page 56 - SWGas Annual Report 2015

Note 5 – Other Comprehensive Income and Accumulated Other Comprehensive Income (“AOCI”)
The following information provides insight into amounts impacting Other Comprehensive Income (Loss), both
before and after-tax, within the Consolidated Statements of Comprehensive Income, which also impact
Accumulated Other Comprehensive Income in the Company’s Consolidated Balance Sheets and Consolidated
Statements of Equity, as well as the Redeemable Noncontrolling Interest.

Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss)

(Thousands of dollars) 2015 2014 2013

Tax Before- Tax Net-of- Before- Tax Net-of-
Before- (Expense) Net-of- Tax (Expense) Tax Tax (Expense) Tax

Tax or Tax Amount or Benefit (1) Amount Amount or Benefit (1) Amount
Amount Benefit (1) Amount

Defined benefit pension

plans:

Net actuarial gain/(loss) $(30,519) $ 11,597 $(18,922) $(173,646) $ 65,985 $(107,661) $ 100,345 $(38,131) $ 62,214

Amortization of prior

service cost 1,335 (507) 828 355 (135) 220 355 (135) 220

Amortization of net

actuarial (gain)/loss 34,381 (13,065) 21,316 23,656 (8,989) 14,667 34,177 (12,987) 21,190

Prior service cost — — — (6,661) 2,531 (4,130) — — —

Regulatory adjustment (5,646) 2,146 (3,500) 140,308 (53,317) 86,991 (123,630) 46,979 (76,651)

Pension plans other (449) 171 (278) (15,988) 6,075 (9,913) 11,247 (4,274) 6,973
comprehensive 3,344 (1,271) 2,073 3,345 (1,272) 2,073 3,345 (1,271) 2,074
income (loss)

Forward-starting interest
rate swaps (“FSIRS”)
(designated hedging
activities):

Amounts reclassified
into net income

FSIRS other compre- 3,344 (1,271) 2,073 3,345 (1,272) 2,073 3,345 (1,271) 2,074
hensive income (loss)
(1,954) — (1,954) (659) — (659) — — —
Foreign currency trans-
lation adjustments:

Translation adjustments

Foreign currency other

comprehensive

income (loss) (1,954) — (1,954) (659) — (659) — — —

Total other compre-
hensive income (loss) $ 941 $ (1,100) $ (159) $ (13,302) $ 4,803 $ (8,499) $ 14,592 $ (5,545) $ 9,047

(1) Tax amounts are calculated using a 38% rate. The Company has elected to indefinitely reinvest the earnings of Centuri’s
Canadian subsidiaries in Canada, thus preventing deferred taxes on such earnings. As a result of this assertion, the
Company is not recognizing any tax effect or presenting a tax expense or benefit for the currency translation adjustment
amount reported in Other Comprehensive Income, as repatriation of earnings is not anticipated.

The estimated amounts that will be amortized from accumulated other comprehensive income or regulatory assets
into net periodic benefit cost over the next year are summarized below (in thousands):

Retirement plan net actuarial loss $ 25,000
SERP net actuarial loss 1,400
PBOP net actuarial loss 400
PBOP prior service cost 1,300

Southwest Gas Corporation