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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
    Commission    
    File Number    
  Exact name of registrant as specified in its charter and
principal office address and telephone number
State of
Incorporation
I.R.S.
Employer Identification No.
001-37976 Southwest Gas Holdings, Inc.Delaware81-3881866
8360 S. Durango Drive
Post Office Box 98510
Las Vegas,Nevada89193-8510
(702) 876-7237
1-7850Southwest Gas CorporationCalifornia88-0085720
8360 S. Durango Drive
Post Office Box 98510
Las Vegas,Nevada89193-8510
(702) 876-7237
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Southwest Gas Holdings, Inc. Common Stock, $1 Par ValueSWXNew York Stock Exchange
Preferred Stock Purchase Rights
N/A
New York Stock Exchange
Indicate by check mark whether each registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that each registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether each registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that each registrant was required to submit such files).    Yes      No  
Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Southwest Gas Holdings, Inc.:
Large accelerated filer   Accelerated filer 
Non-accelerated filer   Smaller reporting company   
Emerging growth company    
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Southwest Gas Corporation:
Large accelerated filer   Accelerated filer 
Non-accelerated filer   Smaller reporting company   
Emerging growth company    
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether each registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.
Southwest Gas Holdings, Inc. Common Stock, $1 Par Value, 71,669,140 shares as of April 26, 2024.
All of the outstanding shares of common stock ($1 par value) of Southwest Gas Corporation were held by Southwest Gas Holdings, Inc. as of April 26, 2024.
SOUTHWEST GAS CORPORATION MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION (H)(1)(a) and (b) OF FORM 10-Q AND IS THEREFORE FILING THIS REPORT WITH THE REDUCED DISCLOSURE FORMAT AS PERMITTED BY GENERAL INSTRUCTION H(2).


SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

FILING FORMAT
This quarterly report on Form 10-Q is a combined report being filed by two separate registrants: Southwest Gas Holdings, Inc. and Southwest Gas Corporation. Except where the content clearly indicates otherwise, any reference in the report to “we,” “us” or “our” is to the holding company or the consolidated entity of Southwest Gas Holdings, Inc. and all of its consolidated subsidiaries, including Southwest Gas Corporation, which is a distinct registrant that is a wholly owned subsidiary of Southwest Gas Holdings, Inc. Information contained herein relating to any individual company is filed by such company on its own behalf. Each company makes representations only as to itself and makes no other representation whatsoever as to any other company.
Part I—Financial information in this Quarterly Report on Form 10-Q includes separate financial statements (i.e., balance sheets, statements of income, statements of comprehensive income, statements of cash flows, and statements of equity) for Southwest Gas Holdings, Inc. and Southwest Gas Corporation, in that order. The Notes to the Condensed Consolidated Financial Statements are presented on a combined basis for both entities. All Items other than Part I – Item 1 are combined for the reporting companies.


2

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SOUTHWEST GAS HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Thousands of dollars, except par value)
(Unaudited)
March 31, 2024December 31, 2023
ASSETS
Regulated operations plant:
Gas plant$10,253,377 $10,140,362 
Less: accumulated depreciation(2,863,941)(2,822,669)
Construction work in progress245,032 200,549 
Net regulated operations plant7,634,468 7,518,242 
Other property and investments, net1,252,861 1,266,340 
Current assets:
Cash and cash equivalents457,952 106,536 
Accounts receivable, net of allowances843,133 886,549 
Accrued utility revenue58,500 93,000 
Income taxes receivable, net7,174 1,935 
Deferred purchased gas costs198,682 552,885 
Prepaid and other current assets214,516 218,832 
Current assets held for sale 21,377 
Total current assets1,779,957 1,881,114 
Noncurrent assets:
Goodwill787,206 789,729 
Deferred income taxes1,309 463 
Deferred charges and other assets432,193 414,008 
Total noncurrent assets1,220,708 1,204,200 
Total assets$11,887,994 $11,869,896 
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock, $1 par (authorized - 120,000,000 shares;
issued and outstanding - 71,665,592 and 71,563,750 shares)
$73,295 $73,194 
Additional paid-in capital
2,547,485 2,541,790 
Accumulated other comprehensive loss, net(46,222)(43,787)
Retained earnings781,683 738,839 
Total equity3,356,241 3,310,036 
Redeemable noncontrolling interests7,661 104,667 
Long-term debt, less current maturities4,648,958 4,609,838 
Total capitalization8,012,860 8,024,541 
Current liabilities:
        Current maturities of long-term debt42,770 42,552 
Short-term debt644,000 628,500 
Accounts payable264,620 346,907 
Customer deposits52,632 48,460 
Income taxes payable, net744 817 
Accrued general taxes96,676 58,053 
Accrued interest39,985 36,605 
Other current liabilities577,237 522,953 
Total current liabilities1,718,664 1,684,847 
Deferred income taxes and other credits:
Deferred income taxes and investment tax credits, net784,491 752,997 
Accumulated removal costs457,000 458,000 
Other deferred credits and other long-term liabilities914,979 949,511 
Total deferred income taxes and other credits2,156,470 2,160,508 
Total capitalization and liabilities$11,887,994 $11,869,896 
The accompanying notes are an integral part of these statements.

3

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

SOUTHWEST GAS HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
 20242023
Operating revenues:
Regulated operations revenues$1,052,933 $950,011 
Utility infrastructure services revenues528,023 653,293 
Total operating revenues1,580,956 1,603,304 
Operating expenses:
Net cost of gas sold629,997 507,537 
Operations and maintenance135,146 148,908 
Depreciation and amortization119,142 112,520 
Taxes other than income taxes22,903 24,230 
Utility infrastructure services expenses515,643 603,680 
Goodwill impairment and loss on sale 71,230 
Total operating expenses1,422,831 1,468,105 
Operating income158,125 135,199 
Other income and (expenses):
Net interest deductions(71,605)(77,334)
Other income18,121 18,460 
Total other (expenses)(53,484)(58,874)
Income before income taxes104,641 76,325 
Income tax expense17,079 28,675 
Net income87,562 47,650 
Net income (loss) attributable to noncontrolling interests(175)1,739 
Net income attributable to Southwest Gas Holdings, Inc.$87,737 $45,911 
Earnings per share:
Basic $1.22 $0.67 
Diluted $1.22 $0.67 
Weighted average shares:
Basic 71,728 68,265 
Diluted 71,882 68,419 
The accompanying notes are an integral part of these statements.


4

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

SOUTHWEST GAS HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Thousands of dollars)
(Unaudited)
Three Months Ended
March 31,
 20242023
Net income$87,562 $47,650 
Other comprehensive income, net of tax
Defined benefit pension plans:
Amortization of prior service cost33 33 
Amortization of net actuarial loss1,451 253 
Regulatory adjustment(1,100)(90)
Net defined benefit pension plans384 196 
Foreign currency translation adjustments(2,819)97 
Total other comprehensive income (loss), net of tax
(2,435)293 
Comprehensive income85,127 47,943 
Comprehensive income (loss) attributable to noncontrolling interests(175)1,739 
Comprehensive income attributable to Southwest Gas Holdings, Inc.$85,302 $46,204 
The accompanying notes are an integral part of these statements.


5

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

SOUTHWEST GAS HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands of dollars)
(Unaudited)
Three Months Ended
March 31,
 20242023
CASH FLOW FROM OPERATING ACTIVITIES:
Net income$87,562 $47,650 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization119,142 112,520 
Impairment of assets and other charges 71,230 
Deferred income taxes30,707 36,712 
Gains on sale of property and equipment(944)(661)
Changes in undistributed stock compensation961 3,436 
Equity AFUDC(1,839)(82)
Changes in current assets and liabilities:
Accounts receivable, net of allowances26,110 (40,185)
Accrued utility revenue34,500 31,200 
Deferred purchased gas costs354,203 (535,224)
Accounts payable(69,863)(305,272)
Accrued taxes33,311 34,950 
Other current assets and liabilities(28,763)371,035 
Changes in deferred charges and other assets(15,982)(1,565)
Changes in other liabilities and deferred credits(25,396)(11,486)
Net cash provided by (used in) operating activities543,709 (185,742)
CASH FLOW FROM INVESTING ACTIVITIES:
Construction expenditures and property additions(221,198)(219,124)
Proceeds from the sale of business, net of cash sold 1,058,272 
Proceeds from the sale of property21,377  
Changes in customer advances(1,658)(6,608)
Other1,689 3,125 
Net cash provided by (used in) investing activities(199,790)835,665 
CASH FLOW FROM FINANCING ACTIVITIES:
Issuance of common stock, net2,372 239,337 
Centuri distribution to redeemable noncontrolling interest(37) 
Dividends paid(44,389)(41,631)
Issuance of long-term debt, net55,897 305,896 
Retirement of long-term debt(16,488)(84,224)
Change in short-term portion of credit facility15,500 (155,000)
Change in long-term credit facility and commercial paper (50,000)
Issuance of short-term debt 450,000 
Repayment of short-term debt (1,372,746)
Withholding remittance - share-based compensation(1,971)(1,506)
Other, including principal payments on finance leases(3,190)(4,949)
Net cash provided by (used in) financing activities7,694 (714,823)
Effects of currency translation on cash and cash equivalents(197)104 
Change in cash and cash equivalents351,416 (64,796)
Cash and cash equivalents included in current assets held for sale at beginning of period 23,803 
Cash and cash equivalents at beginning of period106,536 123,078 
Cash and cash equivalents at end of period$457,952 $82,085 
SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized$65,281 $68,018 
Income taxes paid, net$1,833 $2,381 
The accompanying notes are an integral part of these statements.

6

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

SOUTHWEST GAS HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
20242023
Common stock shares
Beginning balances71,564 67,119 
Common stock issuances101 4,212 
Ending balances71,665 71,331 
Common stock amount
Beginning balances$73,194 $68,749 
Common stock issuances101 4,212 
Ending balances73,295 72,961 
Additional paid-in capital
Beginning balances2,541,790 2,287,183 
Common stock issuances1,508 237,448 
Promissory notes in association with redeemable noncontrolling interest4,187  
Ending balances2,547,485 2,524,631 
Accumulated other comprehensive loss
Beginning balances(43,787)(44,242)
Foreign currency exchange translation adjustment(2,819)97 
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax
384 196 
Ending balances(46,222)(43,949)
Retained earnings
Beginning balances738,839 747,069 
Net income87,737 45,911 
Dividends declared(44,699)(44,635)
Redemption value adjustments(194)(5,832)
Ending balances781,683 742,513 
Total equity ending balances$3,356,241 $3,296,156 
Dividends declared per common share$0.62 $0.62 
The accompanying notes are an integral part of these statements.

7

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

SOUTHWEST GAS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Thousands of dollars)
(Unaudited)
March 31, 2024December 31, 2023
ASSETS
Regulated operations plant:
Gas plant$10,253,377 $10,140,362 
Less: accumulated depreciation(2,863,941)(2,822,669)
Construction work in progress245,032 200,549 
Net regulated operations plant7,634,468 7,518,242 
Other property and investments, net156,262 152,658 
Current assets:
Cash and cash equivalents436,403 71,154 
Accounts receivable, net of allowance297,488 269,195 
Accrued utility revenue58,500 93,000 
Income taxes receivable, net28 26 
Deferred purchased gas costs198,682 552,885 
Prepaid and other current assets187,146 188,138 
Current assets held for sale 21,376 
Total current assets1,178,247 1,195,774 
Noncurrent assets:
Goodwill11,155 11,155 
Deferred charges and other assets390,333 390,742 
Total noncurrent assets401,488 401,897 
Total assets$9,370,465 $9,268,571 
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock$49,112 $49,112 
Additional paid-in capital
2,156,318 2,156,577 
Accumulated other comprehensive loss, net(40,164)(40,548)
Retained earnings1,112,273 1,018,474 
Total equity3,277,539 3,183,615 
Long-term debt, less current maturities3,502,411 3,501,543 
Total capitalization6,779,950 6,685,158 
Current liabilities:
Accounts payable138,938 215,744 
Customer deposits52,631 48,460 
Accrued general taxes96,676 58,053 
Accrued interest38,340 34,955 
Payable to parent269 1,711 
Other current liabilities300,865 271,899 
Total current liabilities627,719 630,822 
Deferred income taxes and other credits:
Deferred income taxes and investment tax credits, net790,312 749,836 
Accumulated removal costs457,000 458,000 
Other deferred credits and other long-term liabilities715,484 744,755 
Total deferred income taxes and other credits1,962,796 1,952,591 
Total capitalization and liabilities$9,370,465 $9,268,571 
The accompanying notes are an integral part of these statements.

8

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

SOUTHWEST GAS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Thousands of dollars)
(Unaudited)
Three Months Ended
March 31,
 20242023
Regulated operations revenues$1,052,933 $914,879 
Operating expenses:
Net cost of gas sold629,997 501,169 
Operations and maintenance130,866 131,188 
Depreciation and amortization84,823 74,650 
Taxes other than income taxes22,903 22,740 
Total operating expenses868,589 729,747 
Operating income184,344 185,132 
Other income and (expenses):
Net interest deductions(36,444)(38,622)
Other income18,100 18,443 
Total other (expenses)(18,344)(20,179)
Income before income taxes166,000 164,953 
Income tax expense30,175 30,257 
Net income$135,825 $134,696 
The accompanying notes are an integral part of these statements.


9

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

SOUTHWEST GAS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Thousands of dollars)
(Unaudited)
Three Months Ended
March 31,
 20242023
Net income$135,825 $134,696 
Other comprehensive income, net of tax
Defined benefit pension plans:
Amortization of prior service cost33 33 
Amortization of net actuarial loss1,451 253 
Regulatory adjustment(1,100)(90)
Net defined benefit pension plans384 196 
Total other comprehensive income, net of tax384 196 
Comprehensive income $136,209 $134,892 
The accompanying notes are an integral part of these statements.


10

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

SOUTHWEST GAS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands of dollars)
(Unaudited)
Three Months Ended
March 31,
 20242023
CASH FLOW FROM OPERATING ACTIVITIES:
Net income$135,825 $134,696 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization84,823 74,650 
Deferred income taxes40,354 39,194 
Changes in undistributed stock compensation1,211 2,955 
Equity AFUDC(1,839) 
Changes in current assets and liabilities:
Accounts receivable, net of allowance(28,293)(66,816)
Accrued utility revenue34,500 31,200 
Deferred purchased gas costs354,203 (520,219)
Accounts payable(67,206)(286,164)
Accrued taxes38,621 34,473 
Other current assets and liabilities33,760 351,252 
Changes in deferred charges and other assets (22,990)(12,891)
Changes in other liabilities and deferred credits(25,407)(10,942)
Net cash provided by (used in) operating activities577,562 (228,612)
CASH FLOW FROM INVESTING ACTIVITIES:
Construction expenditures and property additions(190,699)(192,097)
Proceeds from the sale of property21,376  
Changes in customer advances(1,658)(6,608)
Other200 119 
Net cash used in investing activities(170,781)(198,586)
CASH FLOW FROM FINANCING ACTIVITIES:
Dividends paid(39,700)(32,000)
Issuance of long-term debt, net 297,759 
Change in long-term credit facility and commercial paper (50,000)
Issuance of short-term debt 450,000 
Repayment of short-term debt (225,000)
Withholding remittance - share-based compensation(1,797)(1,292)
Other(35)(993)
Net cash provided by (used in) financing activities(41,532)438,474 
Change in cash and cash equivalents365,249 11,276 
Cash and cash equivalents at beginning of period71,154 51,823 
Cash and cash equivalents at end of period$436,403 $63,099 
SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized$31,880 $29,007 
Income taxes paid, net$ $ 
The accompanying notes are an integral part of these statements.


11

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

SOUTHWEST GAS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(In thousands)
(Unaudited)
Three Months Ended
March 31,
20242023
Common stock shares
Beginning and ending balances47,482 47,482 
Common stock amount
Beginning and ending balances$49,112 $49,112 
Additional paid-in capital
Beginning balances2,156,577 1,622,969 
Share-based compensation(259)1,950 
Ending balances2,156,318 1,624,919 
Accumulated other comprehensive loss
Beginning balances(40,548)(38,261)
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax384 196 
Ending balances(40,164)(38,065)
Retained earnings
Beginning balances1,018,474 935,355 
Net income135,825 134,696 
Share-based compensation (327)(287)
Dividends declared to Southwest Gas Holdings, Inc.(41,699)(39,600)
Ending balances1,112,273 1,030,164 
Total Southwest Gas Corporation equity ending balances$3,277,539 $2,666,130 
The accompanying notes are an integral part of these statements.

















12

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

Note 1 – Background, Organization, and Summary of Significant Accounting Policies
Nature of Operations. Southwest Gas Holdings, Inc. (together with its subsidiaries, the “Company”) is a holding company, owning all of the shares of common stock of Southwest Gas Corporation (“Southwest” or the “natural gas distribution” segment), and through the first quarter of 2024, all of the shares of common stock of Centuri Group, Inc. (“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). References throughout this document in reference to “Centuri” relate to Centuri Group, Inc., for earlier periods or more recently, to Centuri Holdings, Inc.
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 to Williams Partners Operating LLC (“Williams”) for $1.5 billion in total enterprise value, subject to certain adjustments (collectively, the “MountainWest sale”). The MountainWest sale closed on February 14, 2023.
As part of this simplification strategy, the Company previously communicated that it would pursue a separation of Centuri. In April 2024, the Company announced the completion of an initial public offering (“IPO”) of Centuri Holdings, Inc. common stock, with the issuance of 14,260,000 shares ($0.01 par value) at $21.00 per share, along with a private placement of 2,591,929 shares at the same public offering price with Icahn Partners LP and Icahn Partners Master Fund LP, investment entities associated with Carl C. Icahn. The Company owns approximately 81% of Centuri following these events. Through the first quarter of 2024 and leading up to the IPO, Centuri continued to be wholly owned by Southwest Gas Holdings, Inc. Centuri continues to be consolidated as part of these financial statements, and will continue to be consolidated until such time as the conditions for consolidation are no longer met. Centuri now makes separate filings with the Securities and Exchange Commission (the “SEC”) as a public company. The Company’s common stock continues to trade under the ticker symbol “SWX,” while Centuri’s common stock trades under the ticker symbol “CTRI.” As part of the IPO and related undertakings, and to ultimately facilitate a full separation of Centuri over periods ahead, multiple agreements were executed between the Company and Centuri, including a Separation Agreement, a Tax Matters Agreement, and a Registration Rights Agreement. Centuri’s new Board of Directors includes certain overlapping board members with the Company, including Andrew W. Evans, Anne L. Mariucci, and Karen S. Haller (the Company’s Chief Executive Officer). See also Note 8 - Dispositions.
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, highlighted by the significant amount of cash existing as of the end of the first quarter of 2024, reflective of the collection of gas cost under purchased gas cost mechanisms as a component of customer bills. While mechanisms exist in all states in which Southwest operates, which effectively and primarily decouple authorized operating cost recovery and profitability from the volume of natural gas sold, thereby also incentivizing energy conservation, 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, Neuco, Linetec, and Riggs Distler, and in Canada, primarily as 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 condensed consolidated financial statements of Southwest Gas Holdings, Inc. and subsidiaries and Southwest (with its subsidiaries) included herein have been prepared pursuant to the rules and regulations of the SEC. The year-end 2023 condensed balance sheet data was derived from audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. No substantive change has occurred with regard to the Company’s business segments on the whole during the recently completed quarter.
The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring items and estimates necessary for a fair statement of results for the interim periods, have been made.

13

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Southwest and the Company included in our 2023 Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
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 cost 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 earlier period or to the period of correction.
Other Property and Investments. Other property and investments on Southwest’s and the Company’s Condensed Consolidated Balance Sheets includes:
(Thousands of dollars)March 31, 2024December 31, 2023
Net cash surrender value of COLI policies$150,182 $146,546 
Other property6,080 6,112 
Total Southwest Gas Corporation156,262 152,658 
Non-regulated property, equipment, and intangibles1,750,380 1,752,094 
Non-regulated accumulated provision for depreciation and amortization(691,872)(675,632)
Other property and investments38,091 37,220 
Total Southwest Gas Holdings, Inc.$1,252,861 $1,266,340 
Held for sale. In the first quarter of 2023, the Company and Southwest concluded certain assets associated with their 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 Condensed 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. The sale was completed in January 2024.
Cash and Cash Equivalents.  Cash and cash equivalents of the Company include $407.4 million and $48.9 million of money market fund investments at March 31, 2024 and December 31, 2023, respectively. Of these amounts, $407.2 million and $38.6 million at March 31, 2024 and December 31, 2023, respectively, were held by Southwest. Refer to discussion above regarding recent collections under Southwest’s purchased gas adjustment mechanisms.
Noncash investing activities include capital expenditures that were not yet paid, thereby remaining in accounts payable, amounts related to which declined by approximately $20.8 million and $9.6 million during the three months ended March 31, 2024, for the Company and Southwest, respectively; and declined approximately $37.3 million and $34.2 million during the three months ended March 31, 2023, for the Company and Southwest, respectively.
The Company and Southwest expanded their presentation in the first quarter 2024 to show the Change in short-term portion of credit facility and Repayment of short-term debt as separate line items within their Condensed Consolidated Statements of Cash Flows. The comparable prior-year period has been updated to reflect this change.
Prepaid and other current assets. Prepaid and other current assets for the Company and Southwest include, among other things, materials and operating supplies of $80.9 million at March 31, 2024 and $83.4 million at December 31, 2023 (carried at weighted average cost).
Goodwill. Goodwill is assessed as of October 1 each year for impairment, or more frequently, if circumstances indicate an impairment to the carrying value of goodwill may have occurred. The Company’s reporting units for goodwill are its operating segments, which are also its reportable segments. Since December 31, 2023, management qualitatively assessed whether events during the first three months of 2024 indicated it was more likely than not that the fair value of our reporting units was less than their carrying value, which if the case, could be an indication of a goodwill impairment. Through management’s assessments, no impairment was deemed to have occurred in the continuing segments of the Company. Goodwill in the Natural Gas

14

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

Distribution and Utility Infrastructure Services segments is included in the respective Condensed Consolidated Balance Sheets as follows:
(Thousands of dollars)Natural Gas
Distribution
Utility Infrastructure
Services
Total Company
December 31, 2023$11,155 $778,574 $789,729 
Foreign currency translation adjustment (2,523)(2,523)
March 31, 2024$11,155 $776,051 $787,206 
Other Current Liabilities. Management recognizes in its balance sheets various liabilities that are expected to be settled through future cash payment within the next twelve months, including amounts payable under regulatory mechanisms, 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 of dividends declared as of both March 31, 2024 and December 31, 2023, respectively. Also included in the balance for the Company and Southwest was $120.3 million and $87.6 million in accrued purchased gas cost as of March 31, 2024 and December 31, 2023, respectively.
Other Income (Deductions). The following table provides the composition of significant items included in Other income (deductions) in Southwest’s and the Company’s Condensed Consolidated Statements of Income:
Three Months Ended March 31,
(Thousands of dollars)
20242023
Southwest Gas Corporation:
Change in COLI policies$3,600 $2,400 
Interest income9,776 12,471 
Equity AFUDC1,839  
Other components of net periodic benefit cost4,131 4,959 
Miscellaneous expense(1,246)(1,387)
Southwest Gas Corporation - total other income (deductions)18,100 18,443 
Centuri, MountainWest, and Southwest Gas Holdings, Inc.:
Foreign transaction gain (loss)102 (690)
Equity AFUDC 82 
Equity in earnings (loss) of unconsolidated investments(113)360 
Miscellaneous income and (expense)43 (5)
Corporate and administrative(11)270 
Southwest Gas Holdings, Inc. - total other income (deductions)$18,121 $18,460 
Interest income primarily relates to Southwest’s regulatory asset balances, including its deferred purchased gas cost mechanisms, the combined balance of which ranged from $970 million as of March 31, 2023 to $199 million as of March 31, 2024. Refer also to Note 2 – Components of Net Periodic Benefit Cost.
Redeemable Noncontrolling Interests. In connection with the acquisition of Linetec in November 2018, the previous owner initially retained a 20% equity interest in that entity, 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, through Centuri, had the right, but not the obligation, to purchase at fair value (subject to a floor) a portion of the interest held by the previous owner, 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 in April 2023, Centuri paid $39.9 million to the previous owner, thereby reducing the balance continuing to be redeemable at that time to 10% under the terms of the original agreement. In March 2024, the parties entered into an agreement to redeem the remaining 10% equity interest for $92 million, which resulted in Centuri owning all of the equity interest in Linetec as of March 31, 2024. The Company paid the $92 million in April, in accordance with the agreement. The impact of this transaction has been excluded from the Company’s Condensed Consolidated Statement of Cash Flows for the first quarter of 2024 due to its noncash nature during the period.
Separately, certain members of Riggs Distler management have a 1.41% interest in Drum, which is redeemable, subject to certain rights based on the passage of time or upon the occurrence of certain triggering events. A portion of the redeemable noncontrolling interest was funded through promissory notes made to noncontrolling interest holders bearing interest at the prime rate plus 2%.

15

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

During the first quarter of 2024, Centuri forgave all outstanding promissory notes and unpaid interest owed from the Riggs Distler noncontrolling interest holders and in exchange obtained 0.47% portion of the equity interest in Drum that had been funded through these notes. This comprises most of the change noted below as redemption of Drum interests during the quarter. Additionally, during the first quarter of 2024, Centuri reached an agreement to purchase 0.13% of the noncontrolling interest in Drum for $0.8 million, the majority which was accrued in March 2024 and ultimately paid in April 2024. The impact of the accrued amount has been excluded from the Company’s Condensed Consolidated Statement of Cash Flows for the first quarter of 2024 due to the noncash nature in advance of the April 2024 payment. The remaining noncontrolling interest in Drum outstanding as of March 31, 2024 was 0.81%, with Centuri owning over 99% of Drum following these events.
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. Valuation adjustments also impact retained earnings, as reflected in the Company’s Condensed Consolidated Statement of Equity, but do not impact net income. The following depicts changes to the balances of the redeemable noncontrolling interests:
(Thousands of dollars):LinetecDrumTotal
Balance, December 31, 2023
$91,978 $12,689 $104,667 
Net income (loss ) attributable to redeemable noncontrolling interests(193)18 (175)
 Redemption value adjustments194  194 
 Redemption of equity interest from noncontrolling party(91,979)(5,046)(97,025)
Balance, March 31, 2024
$ $7,661 $7,661 
Earnings Per Share. Basic earnings per share (“EPS”) in each period of this report were calculated by dividing net income attributable to Southwest Gas Holdings, Inc. by the weighted-average number of shares during those periods. Diluted EPS includes additional weighted-average common stock equivalents (performance shares and restricted stock units). Unless otherwise noted, the term “Earnings Per Share” refers to Basic EPS. A reconciliation of the denominator used in Basic and Diluted EPS calculations is shown in the following table:
Three Months Ended March 31,
(In thousands)20242023
Weighted average basic shares71,728 68,265 
Effect of dilutive securities:
Restricted stock units (1)154 154 
Weighted average diluted shares71,882 68,419 
(1) The number of securities included 136,000 and 132,000 performance shares during the three months ended March 31, 2024 and March 31, 2023, the total of which was derived by assuming that target performance will be achieved during the relevant performance period.
Income Taxes. The Company’s effective tax rate was 16.3% for the three months ended March 31, 2024, compared to 37.6% for the corresponding period in 2023. The effective rate decrease was primarily due to the MountainWest sale in 2023, which also included the impact of book versus tax basis differences related to the transaction (See Note 8 - Dispositions).
Southwest’s effective tax rate was 18.2% for the three months ended March 31, 2024, compared to 18.3% for the corresponding period in 2023. These amounts varied from the statutory rate primarily as the result of the amortization of excess deferred income taxes.
In April 2023, the Internal Revenue Service 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.

16

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

Recent Accounting Standards Updates.
Recently issued accounting pronouncement that will be effective in 2024 and later periods:
In November 2023, the Financial Accounting Standards Board (the “FASB”) issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The update, among 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, as well as an amount and description of the composition of other segment items to reconcile to segment profit or loss, and also requires the title and position of the entity’s CODM to be disclosed. The update additionally extends certain annual disclosures to interim periods. The provisions of the update are 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 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, among other amendments, provides for enhanced income tax information primarily through changes in the rate reconciliation and income taxes paid. 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.



17

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

Note 2 – Components of Net Periodic Benefit Cost
Southwest has a noncontributory qualified retirement plan with defined benefits covering substantially all employees (those hired before 2022) and a separate unfunded supplemental retirement plan (“SERP”), which is limited to officers hired before 2022. Southwest also provides limited postretirement benefits other than pensions (“PBOP”) to its qualified retirees for health care, dental, and life insurance.
The service cost component of net periodic benefit costs included in the table below is a component of an overhead loading process associated with the cost of labor. The overhead process ultimately results in allocation of service cost 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 other components of net periodic benefit cost are reflected in Other income (deductions) on the Condensed Consolidated Statements of Income of each entity. 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.
 Qualified Retirement Plan
 March 31,
 Three Months
 20242023
(Thousands of dollars)  
Service cost$7,063 $6,460 
Interest cost15,097 14,791 
Expected return on plan assets(21,953)(21,015)
Amortization of net actuarial loss1,577 84 
Net periodic benefit cost$1,784 $320 
 SERP
 March 31,
 Three Months
 20242023
(Thousands of dollars)  
Service cost$61 $62 
Interest cost542 531 
Amortization of net actuarial loss333 249 
Net periodic benefit cost$936 $842 
 PBOP
 March 31,
 Three Months
 20242023
(Thousands of dollars)  
Service cost$322 $317 
Interest cost794 825 
Expected return on plan assets(565)(606)
Amortization of prior service costs44 44 
Net periodic benefit cost$595 $580 

18

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

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’s operating revenues included on the Condensed 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:
 Three Months Ended
March 31,
(Thousands of dollars)20242023
Residential$784,237 $739,313 
Small commercial206,445 174,184 
Large commercial38,016 31,091 
Industrial/other20,823 21,114 
Transportation28,687 30,543 
Revenue from contracts with customers1,078,208 996,245 
Alternative revenue program revenues (deferrals)(29,433)(86,204)
Other revenues (1)4,158 4,838 
Total Regulated operations revenues$1,052,933 $914,879 
(1) Amounts include late fees and other miscellaneous revenues, and may also include the impact of certain regulatory mechanisms.
Utility Infrastructure Services Segment:
During the fourth quarter of 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 organizational 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 following tables display Centuri’s revenue, reflected as Utility infrastructure services revenues on the Condensed Consolidated Statements of Income of the Company, representing revenue from contracts with customers disaggregated by service and contract types:
 Three Months Ended
March 31,
(Thousands of dollars)2024
2023*
Service Types:
Gas infrastructure services$261,226 $298,640 
Electric power infrastructure services260,466 342,275 
Other6,331 12,378 
Total Utility infrastructure services revenues$528,023 $653,293 
*The three months ended March 31, 2023 were previously presented as: Gas infrastructure services of $297,408, Electric power infrastructure services of $233,640, and Other of $122,245.

19

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

 Three Months Ended
March 31,
(Thousands of dollars)20242023
Contract Types:
Master services agreement$443,242 $547,606 
Bid contract84,781 105,687 
Total Utility infrastructure services revenues$528,023 $653,293 
Unit price contracts$307,849 $328,527 
Fixed price contracts110,282 166,915 
Time and materials contracts109,892 157,851 
Total Utility infrastructure services revenues$528,023 $653,293 
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 March 31, 2024 and December 31, 2023 on the Company’s Condensed Consolidated Balance Sheets:
(Thousands of dollars)March 31, 2024December 31, 2023
Contracts receivable, net$287,815 $347,454 
Revenue earned on contracts in progress in excess of billings257,830 269,808 
Amounts billed in excess of revenue earned on contracts13,648 43,694 
Revenue earned on contracts in progress in excess of billings (contract assets) that are not expected to be recognized within a year from the financial statement date are not included in the table above, and were $16.5 million as of March 31, 2024, and $0.2 million as of December 31, 2023. These non-current balances were included in Deferred charges and other assets on the Company’s Condensed Consolidated Balance Sheets.
These contract assets primarily relate to Centuri’s rights to consideration for work completed, but not billed and/or approved for billing at the reporting date, and are transferred to contracts receivable when the rights become unconditional. 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 decrease in the contract liability balance from December 31, 2023 to March 31, 2024 of $30 million was due to revenue recognized during the period, net of new payments received in advance of work performed.
For contracts that have an original duration of one year or less, Centuri uses the practical expedient applicable to such contracts and does not consider/compute an interest component based on the time value of money. Furthermore, because of the short duration of these contracts, Centuri 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 March 31, 2024, Centuri had 53 fixed price 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 March 31, 2024 was $277 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 materials required to complete the work are provided by the customer.
Utility infrastructure services contracts receivable consists of the following:
(Thousands of dollars)March 31, 2024December 31, 2023
Billed on completed contracts and contracts in progress$285,896 $348,021 
Other receivables1,989 1,945 
Contracts receivable, gross287,885 349,966 
Allowance for doubtful accounts(70)(2,512)
Contracts receivable, net$287,815 $347,454 

20

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

Note 4 – 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 (for award grants prior to 2024 that continue to be subject to time-based vesting) is based on stock awards to be issued in shares of Southwest Gas Holdings, Inc.
In November 2023, the Company and Southwest jointly filed an automatic shelf registration statement (File No. 333-275774), which became effective upon filing. The prior shelf registration expired in December 2023. Upon expiration of the prior shelf registration, the Company’s equity shelf program was terminated. The Company intends to enter into a similar program during 2024.
During the three months ended March 31, 2024, the Company issued approximately 67,000 shares of common stock through the Omnibus Incentive Plan.
Additionally, during the three months ended March 31, 2024, the Company issued 35,000 shares of common stock through the Dividend Reinvestment and Stock Purchase Plan, raising approximately $2.4 million.


21

SOUTHWEST GAS HOLDINGS, INC.  Form 10-Q
SOUTHWEST GAS CORPORATION  March 31, 2024

Note 5 – Debt
Long-Term Debt
Long-term debt is recognized in the Company’s and Southwest’s Condensed 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.
 March 31, 2024December 31, 2023
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
(Thousands of dollars)
Southwest Gas Corporation:
Debentures:
8% Series, due 2026
$75,000 $78,087 $75,000 $79,502 
Medium-term notes, 7.92% series, due 2027
25,000 26,470 25,000 26,883 
Medium-term notes, 6.76% series, due 2027
7,500 7,703 7,500 7,800 
Notes, 5.8%, due 2027
300,000 306,630 300,000 309,180 
Notes, 3.7%, due 2028
300,000 285,690 300,000 285,300 
Notes, 5.45%, due 2028
300,000 304,920 300,000 307,170 
Notes, 2.2%, due 2030
450,000 381,555 450,000 382,635 
Notes, 4.05%, due 2032
600,000 549,840 600,000 563,940 
Notes, 6.1%, due 2041
125,000 129,113 125,000 126,238 
Notes, 4.875%, due 2043
250,000 215,200 250,000 214,050 
Notes, 3.8%, due 2046
300,000 224,970 300,000 225,240 
Notes, 4.15%, due 2049
300,000 232,860 300,000 236,370 
Notes, 3.18%, due 2051
300,000 196,110 300,000 197,760 
Unamortized discount and debt issuance costs(28,828)(29,594)
3,303,672 3,302,906 
Revolving credit facility and commercial paper    
Industrial development revenue bonds:
Tax-exempt Series A, due 202850,000 50,000 50,000 50,000 
2003 Series A, due 203850,000 50,000 50,000 50,000 
2008 Series A, due 203850,000 50,000 50,000 50,000 
2009 Series A, due 203950,000 50,000 50,000 50,000 
Unamortized discount and debt issuance costs(1,261)(1,363)
198,739 198,637 
Less: current maturities