Southwest Gas Holdings, Inc.SWX
Southwest Gas Holdings, Inc. Segments Disclosure
Note 16 - Segment Information
The Company’s businesses were managed within the Natural Gas Distribution segment (Southwest Gas), the Utility Infrastructure Services segment (Centuri), and the Pipeline and Storage segment (MountainWest) through February 2023. The Company disposed of its Pipeline and Storage segment (MountainWest) in February 2023 and disposed of its Utility Infrastructure Services segment (Centuri) in August 2025 see Note 13 - Dispositions. The Company and Southwest Gas consist of a single reportable segment (Natural Gas Distribution) for all periods presented in these financial statements.
The Utility Infrastructure Services segment is presented as discontinued operations in the Consolidated Statements of Income and, as such, have been excluded from continuing operations and segment results. Previously reported results for the Natural Gas Distribution segment was not impacted by the Centuri deconsolidation or the revisions discussed in Note 3 - Revision of Previously Issued Financial Statements.
The Pipeline and Storage segment (MountainWest) was primarily engaged in the business of providing interstate transportation and underground storage services. 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. Previously reported results for the Pipeline and Storage segment was not impacted by the Centuri deconsolidation or the revisions discussed in Note 3 - Revision of Previously Issued Financial Statements.
The Company’s CEO and Southwest Gas’ CEO and President have been identified as the CODM. The CODM reviews the Company’s income (loss) from continuing operations and Southwest Gas’ net income as reported on their respective consolidated statements of income in assessing performance and allocating resources. The CODM considers budget-to-actual variances against these metrics when making decisions about allocating capital and personnel. The CODM also uses income (loss) from continuing operations and net income to assess the return on assets, margin earned, and in assessing the compensation of certain employees.
Because both the Company and Southwest Gas operate as a single reportable segment, the related disclosure information is presented in the applicable sections. The other significant amounts required for disclosure are included within income (loss) from continuing operations and net income. Revenues from external customers are reported as “Revenues from contracts with customers” in Note 6 - Revenue for the years ended December 31, 2025, and December 31, 2024, and capital expenditures are reported as “Capital expenditures and property additions” in the consolidated statements of cash flows for the years ended December 31, 2025 and December 31, 2024. The measures of assets for the Company and Southwest Gas are reported as “Total assets” on their respective consolidated balance sheets. Refer to these statements for the results of the Natural Gas Distribution segment for the years ended December 31, 2025, December 31, 2024 and December 31, 2023.
As discussed above, the Utility Infrastructure Services segment was reclassified into discontinued operations and the Company only had multiple segments in calendar year 2023. The financial information pertaining to the Natural Gas Distribution and Pipeline and Storage segments as of and for the year ended December 31, 2023 is presented in the tables below. The accounting policies of the segments are the same as those described in Note 2 - Summary of Significant Accounting Policies. In order to reconcile to net income as disclosed in the Consolidated Statements of Income, an Other column is included below associated with certain expenses that represent the corporate and administrative activities associated with Southwest Gas Holdings, such as Operations and maintenance expenses and net interest deduction.
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| (Thousands of dollars) | Natural Gas Distribution | Pipeline and Storage (1) | Other | Total | ||||||||||||||||||||||
Revenues from external customers | $ | 2,536,079 | $ | 35,132 | $ | — | $ | 2,571,211 | ||||||||||||||||||
| Alternative revenue program and other revenues | (36,515) | — | — | (36,515) | ||||||||||||||||||||||
Total segment revenues | 2,499,564 | 35,132 | — | 2,534,696 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Net cost of gas sold | 1,246,901 | 6,368 | — | 1,253,269 | ||||||||||||||||||||||
Operations and maintenance expense | 511,646 | 11,378 | 9,985 | 533,009 | ||||||||||||||||||||||
Other segment items (2) | 461,892 | 24,419 | 92,703 | 579,014 | ||||||||||||||||||||||
Income (loss) before income taxes | 279,125 | (7,033) | (102,688) | 169,404 | ||||||||||||||||||||||
Income tax expense (benefit) | 36,899 | 9,255 | (16,744) | 29,410 | ||||||||||||||||||||||
Income (loss) from continuing operations | 242,226 | (16,288) | (85,944) | 139,994 | ||||||||||||||||||||||
Income from discontinued operations, net of taxes | 15,523 | |||||||||||||||||||||||||
Net income | 155,517 | |||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | 4,628 | |||||||||||||||||||||||||
Net income attributable to Southwest Gas Holdings, Inc. | $ | 150,889 | ||||||||||||||||||||||||
(1) The information for the year ended December 31, 2023 presented for MountainWest reflects activity from January 1, 2023 through February 13, 2023 (the last full day of its ownership by the Company).
(2) Other segment items for each reportable segment includes:
•Natural Gas Distribution: Depreciation and amortization, Taxes other than income taxes, Net interest deductions, and Other income (deductions).
•Pipeline and Storage: Depreciation and amortization, Taxes other than income taxes, Goodwill impairment and loss on sale, Net interest deductions, and Other income (deductions).
| Other segment disclosures | Year Ended December 31, 2023 | |||||||||||||||||||||||||
| (Thousands of dollars) | Natural Gas Distribution | Pipeline and Storage (1) | Other | Total | ||||||||||||||||||||||
| Interest income | $ | 50,757 | $ | — | $ | — | $ | 50,757 | ||||||||||||||||||
| Interest expense | $ | 149,830 | $ | 2,200 | $ | 42,780 | $ | 194,810 | ||||||||||||||||||
| Depreciation and amortization | $ | 295,462 | $ | — | $ | — | $ | 295,462 | ||||||||||||||||||
Goodwill impairment and loss on sale | $ | — | $ | 21,215 | $ | 50,015 | $ | 71,230 | ||||||||||||||||||
| Segment assets | $ | 9,268,571 | $ | — | $ | 8,735 | $ | 9,277,306 | ||||||||||||||||||
| Capital expenditures | $ | 762,081 | $ | 3,790 | $ | — | $ | 765,871 | ||||||||||||||||||
(1) The information for the year ended December 31, 2023 presented for MountainWest reflects activity from January 1, 2023 through February 13, 2023 (the last full day of its ownership by the Company).
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 28, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.