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Discontinued Operations
 9 Months Ended
Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations DISCONTINUED OPERATIONS
NW Holdings
On June 20, 2018, NWN Gas Storage, then a wholly-owned subsidiary of NW Natural, entered into a Purchase and Sale Agreement (the Agreement) that provides for the sale by NWN Gas Storage of all of the membership interests in Gill Ranch. Gill Ranch owns a 75% interest in the natural gas storage facility located near Fresno, California known as the Gill Ranch Gas Storage Facility. Pacific Gas and Electric Company (PG&E) owns the remaining 25% interest in the Gill Ranch Gas Storage Facility. The CPUC regulates Gill Ranch under a market-based rate model which allows for the price of storage services to be set by the marketplace.

The Agreement provides for an initial cash purchase price of $25.0 million (subject to a working capital adjustment), plus potential additional payments to NWN Gas Storage of up to $26.5 million in the aggregate if Gill Ranch achieves certain economic performance levels for the first three full gas storage years (April 1 of one year through March 31 of the following year) occurring after the closing and the remaining portion of the gas storage year during which the closing occurs.
The sale of Gill Ranch was approved by the CPUC in December 2019, and the transaction is subject to other customary closing conditions and covenants, including the requirement that all of the representations and warranties be true and correct as of the closing date except, as would not, in the case of certain representations and warranties, be reasonably expected to have a material adverse effect on Gill Ranch. The Agreement, as amended, is subject to termination by either party if the transaction has not closed by November 20, 2020.
The following table presents the carrying amounts of the major components of Gill Ranch that are classified as discontinued operations assets and liabilities on the consolidated balance sheets:
NW Holdings
Discontinued Operations
September 30,December 31,
In thousands202020192019
Assets:
Accounts receivable$1,106 $907 $333 
Inventories730 712 695 
Other current assets64 45 457 
Property, plant, and equipment, net14,663 12,583 13,284 
Operating lease right of use asset118 118 118 
Other non-current assets247 247 247 
Total discontinued operations assets - current assets (1)
$16,928 $14,612 $15,134 
Liabilities:
Accounts payable$1,747 $1,375 $1,250 
Other current liabilities796 342 848 
Operating lease liabilities113 114 116 
Other non-current liabilities11,266 11,568 11,495 
Total discontinued operations liabilities - current liabilities (1)
$13,922 $13,399 $13,709 
(1)     The total assets and liabilities of Gill Ranch are classified as current as of the periods presented above because it is probable that the sale will be completed within one year.
The following table presents the operating results of Gill Ranch, which was reported within the gas storage segment historically, and is presented net of tax on the consolidated statements of comprehensive income:
NW Holdings
Discontinued Operations
Three Months Ended September 30,Nine Months Ended September 30,
In thousands, except per share data2020201920202019
Revenues$3,584 $1,410 $7,866 $4,879 
Expenses:
Operations and maintenance2,148 2,113 6,332 6,377 
General taxes61 40 161 159 
Depreciation and amortization105 105 317 317 
Other expenses and interest229 233 688 699 
Total expenses2,543 2,491 7,498 7,552 
Income (loss) from discontinued operations before income taxes1,041 (1,081)368 (2,673)
Income tax expense (benefit)276 (286)101 (705)
Income (loss) from discontinued operations, net of tax$765 $(795)$267 $(1,968)
Earnings (loss) from discontinued operations per share of common stock:
Basic$0.02 $(0.02)$0.01 $(0.07)
Diluted$0.02 $(0.02)$0.01 $(0.07)