Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Lease Revenue

The components of lease revenue at NW Natural were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	2022		2021		2022		2021
Lease revenue
Operating leases	$	19	$	18	$	56	$	61
Sales-type leases	4,279		4,367		12,839		13,104
Total lease revenue	$	4,298	$	4,385	$	12,895	$	13,165

Lessor, Operating Lease, Payments to be Received, Maturity

Total future minimum lease payments to be received under non-cancelable leases at September 30, 2022 are as follows:

In thousands	Operating		Sales-Type		Total
NW Natural:
Remainder of 2022	$	145	$	4,217	$	4,362
2023	76		16,557		16,633
2024	76		15,867		15,943
2025	67		15,306		15,373
2026	36		14,901		14,937
Thereafter	22		236,820		236,842
Total minimum lease payments	$	422	$	303,668	$	304,090
Less: imputed interest			168,188
Total leases receivable			$	135,480
Other (NW Holdings):
Remainder of 2022	$	13	$	—	$	13
2023	51		—		51
2024	52		—		52
2025	53		—		53
2026	56		—		56
Thereafter	914		—		914
Total minimum lease payments	$	1,139	$	—	$	1,139
NW Holdings:
Remainder of 2022	$	158	$	4,217	$	4,375
2023	127		16,557		16,684
2024	128		15,867		15,995
2025	120		15,306		15,426
2026	92		14,901		14,993
Thereafter	936		236,820		237,756
Total minimum lease payments	$	1,561	$	303,668	$	305,229
Less: imputed interest			168,188
Total leases receivable			$	135,480

Lease Expense

The components of lease expense, a portion of which is capitalized, were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	2022		2021		2022		2021
NW Natural:
Operating lease expense	$	1,767	$	1,735	$	5,235	$	5,123
Short-term lease expense	$	105	$	499	$	684	$	1,068
Other (NW Holdings):
Operating lease expense	$	7	$	14	$	22	$	50
NW Holdings:
Operating lease expense	$	1,774	$	1,749	$	5,257	$	5,173
Short-term lease expense	$	105	$	499	$	684	$	1,068

Operating Lease, Lease Asset and Liabilities

Supplemental balance sheet information related to operating leases as of September 30, 2022 and 2021 and December 31, 2021 is as follows:

In thousands	September 30,				December 31,
	2022		2021		2021
NW Natural:
Operating lease right of use asset	$	73,046	$	75,565	$	74,987
Operating lease liabilities - current liabilities	$	1,298	$	1,184	$	1,273
Operating lease liabilities - non-current liabilities	78,436		79,752		79,431
Total operating lease liabilities	$	79,734	$	80,936	$	80,704
Other (NW Holdings):
Operating lease right of use asset	$	99	$	69	$	62
Operating lease liabilities - current liabilities	$	63	$	29	$	23
Operating lease liabilities - non-current liabilities	33		37		37
Total operating lease liabilities	$	96	$	66	$	60
NW Holdings:
Operating lease right of use asset	$	73,145	$	75,634	$	75,049
Operating lease liabilities - current liabilities	$	1,361	$	1,213	$	1,296
Operating lease liabilities - non-current liabilities	78,469		79,789		79,468
Total operating lease liabilities	$	79,830	$	81,002	$	80,764

Operating Lease, Weighted Average Remaining Term and Discount Rates [Table Text Block]

The weighted-average remaining lease terms and weighted-average discount rates for the operating leases at NW Natural were as follows:

In thousands	September 30,				December 31,
	2022		2021		2021
Weighted-average remaining lease term (years)	17.5		18.4		18.2
Weighted-average discount rate	7.3	%	7.2	%	7.2	%

Lessee, Operating Lease, Liability, Maturity

Maturities of operating lease liabilities at September 30, 2022 were as follows:

In thousands	NW Natural		Other (NW Holdings)		NW Holdings
Remainder of 2022	$	1,752	$	8	$	1,760
2023	7,046		26		7,072
2024	7,183		27		7,210
2025	7,185		20		7,205
2026	7,353		6		7,359
Thereafter	116,431		18		116,449
Total lease payments	146,950		105		147,055
Less: imputed interest	67,216		9		67,225
Total lease obligations	79,734		96		79,830
Less: current obligations	1,298		63		1,361
Long-term lease obligations	$	78,436	$	33	$	78,469

Lessee, Leases, Supplemental Cash Flow Information

Supplemental cash flow information related to leases was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	2022		2021		2022		2021
NW Natural:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,759	$	1,727	$	5,225	$	5,113
Finance cash flows from finance leases	$	92	$	123	$	474	$	801
Right of use assets obtained in exchange for lease obligations
Operating leases	$	—	$	—	$	—	$	154
Finance leases	$	6	$	75	$	226	$	169
Other (NW Holdings):
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	12	$	18	$	24	$	51
Right of use assets obtained in exchange for lease obligations
Operating leases	$	61	$	—	$	61	$	—
NW Holdings:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,771	$	1,745	$	5,249	$	5,164
Finance cash flows from finance leases	$	92	$	123	$	474	$	801
Right of use assets obtained in exchange for lease obligations
Operating leases	$	61	$	—	$	61	$	154
Finance leases	$	6	$	75	$	226	$	169