Discontinued Operations

3 Months Ended

Mar. 31, 2021

Mar. 31, 2019

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

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 provided 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.

On December 4, 2020, NWN Gas Storage closed the sale of all of the membership interests in Gill Ranch and received payment of the initial cash purchase price of $13.5 million less the $1.0 million deposit previously paid. Furthermore, additional payments to NWN Gas Storage may be made subject to a maximum amount of $15.0 million in the aggregate (subject to a working capital adjustment) based on the economic performance of Gill Ranch for each full gas storage year (April 1 of one year through March 31 of the following year) occurring after the closing and the remaining portion of the 2020-2021 gas storage year and will continue until such time as the maximum amount has been paid. The fair value of this arrangement at the closing date was zero based on a discounted cash flow forecast. Subsequent changes in the fair value will be recorded in earnings. The completion of the sale resulted in an after-tax gain of $5.9 million for the year ended December 31, 2020.

As a result of the disposition of the membership interests in Gill Ranch, there were no assets or liabilities classified as held for sale at March 31, 2021 or December 31, 2020 and there was no activity in the consolidated statement of comprehensive income for the three months ended March 31, 2021. The assets and liabilities of the discontinued operations classified as held for sale in the consolidated balance sheet at March 31, 2020 include the following:

	NW Holdings Discontinued Operations
In thousands	March 31, 2020
Assets:
Accounts receivable	$	514
Inventories	689
Other current assets	386
Property, plant, and equipment, net	13,342
Operating lease right of use asset	118
Other non-current assets	247
Total discontinued operations assets - current assets (1)	$	15,296
Liabilities:
Accounts payable	$	717
Other current liabilities	553
Operating lease liabilities	110
Other non-current liabilities	11,421
Total discontinued operations liabilities - current liabilities (1)	$	12,801

(1)     The total assets and liabilities of Gill Ranch were classified as current because it was probable that the sale would be completed within one year.

The following table presents the operating results of Gill Ranch and is presented net of tax on the consolidated statements of comprehensive income:

	NW Holdings Discontinued Operations
	Three Months Ended
In thousands, except per share data	March 31, 2020
Revenues	$	908
Expenses:
Operations and maintenance	1,580
General taxes	47
Depreciation and amortization	106
Other expenses and interest	231
Total expenses	1,964
Loss from discontinued operations before income taxes	(1,056)
Income tax benefit	(278)
Loss from discontinued operations, net of tax	$	(778)
Loss from discontinued operations per share of common stock:
Basic	$	(0.02)
Diluted	$	(0.02)

Northwest Holdings [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Disposal Groups, Including Discontinued Operations

The following table presents the operating results of Gill Ranch and is presented net of tax on the consolidated statements of comprehensive income:

	NW Holdings Discontinued Operations
	Three Months Ended
In thousands, except per share data	March 31, 2020
Revenues	$	908
Expenses:
Operations and maintenance	1,580
General taxes	47
Depreciation and amortization	106
Other expenses and interest	231
Total expenses	1,964
Loss from discontinued operations before income taxes	(1,056)
Income tax benefit	(278)
Loss from discontinued operations, net of tax	$	(778)
Loss from discontinued operations per share of common stock:
Basic	$	(0.02)
Diluted	$	(0.02)

Northwest Holdings [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Disposal Groups, Including Discontinued Operations

	NW Holdings Discontinued Operations
In thousands	March 31, 2020
Assets:
Accounts receivable	$	514
Inventories	689
Other current assets	386
Property, plant, and equipment, net	13,342
Operating lease right of use asset	118
Other non-current assets	247
Total discontinued operations assets - current assets (1)	$	15,296
Liabilities:
Accounts payable	$	717
Other current liabilities	553
Operating lease liabilities	110
Other non-current liabilities	11,421
Total discontinued operations liabilities - current liabilities (1)	$	12,801

(1)     The total assets and liabilities of Gill Ranch were classified as current because it was probable that the sale would be completed within one year.