Income Tax (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following table provides a reconciliation between income taxes calculated at the statutory federal tax rate and the provision for income taxes reflected in the NW Holdings and NW Natural statements of comprehensive income or loss for December 31:


	NW Holdings			NW Natural
Dollars in thousands	2021	2020	2019	2021	2020	2019
Income taxes at federal statutory rate	$22,275	$19,185	$16,370	$22,996	$19,248	$17,438
Increase (decrease):
State income tax, net of federal	9,962	6,389	4,422	10,150	6,385	4,716
Differences required to be flowed-through by regulatory commissions	(4,655)	(3,960)	(5,772)	(4,738)	(3,960)	(5,772)
Regulatory settlement	—	—	(1,129)	—	—	(1,129)
Other, net	(176)	(532)	(1,249)	(75)	(578)	(1,188)
Total provision for income taxes	$27,406	$21,082	$12,642	$28,333	$21,095	$14,065
Effective tax rate	25.8%	23.1%	16.2%	25.9%	23.0%	16.9%

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision for current and deferred income taxes consists of the following at December 31:


	NW Holdings						NW Natural
In thousands	2021		2020		2019		2021		2020		2019
Current
Federal	$	6,508	$	10,106	$	5,530	$	7,570	$	11,092	$	6,755
State	6,281		5,971		1,667		7,540		5,357		2,101
Total current income taxes	12,789		16,077		7,197		15,110		16,449		8,856
Deferred
Federal	8,289		2,888		1,515		7,915		1,921		1,340
State	6,328		2,117		3,930		5,308		2,725		3,869
Total deferred income taxes	14,617		5,005		5,445		13,223		4,646		5,209
Income tax provision	$	27,406	$	21,082	$	12,642	$	28,333	$	21,095	$	14,065

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The following table summarizes the tax effect of significant items comprising NW Holdings and NW Natural's deferred income tax balances recorded at December 31:


	NW Holdings				NW Natural
In thousands	2021		2020		2021		2020
Deferred tax liabilities:
Plant and property	$	310,471	$	297,078	$	303,928	$	290,105
Leases receivable	38,123		39,396		38,123		39,396
Pension and postretirement obligations	23,097		25,066		23,097		25,066
Income tax regulatory asset	14,818		17,104		14,818		17,104
Lease right of use assets	21,362		21,613		21,350		21,596
Other	7,793		—		8,003		—
Total deferred income tax liabilities	$	415,664	$	400,257	$	409,319	$	393,267
Deferred income tax assets:
Income tax regulatory liability	$	50,447	$	52,590	$	50,193	$	52,366
Lease liabilities	21,376		21,622		21,365		21,606
Other intangible assets	3,484		4,485		—		—



Net operating losses and credits carried forward	126		861		44		80
Other	—		1,407		—		1,181
Total deferred income tax assets	$	75,433	$	80,965	$	71,602	$	75,233
Total net deferred income tax liabilities	$	340,231	$	319,292	$	337,717	$	318,034