Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Lease Revenue

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

	Three Months Ended March 31,
In thousands	2023		2022
Lease revenue
Operating leases	$	19	$	18
Sales-type leases	3,979		4,281
Total lease revenue	$	3,998	$	4,299

Lessor, Operating Lease, Payments to be Received, Maturity

Total future minimum lease payments to be received under non-cancelable leases at March 31, 2023 are as follows:

In thousands	Operating		Sales-Type		Total
NW Natural:
Remainder of 2023	$	466	$	12,376	$	12,842
2024	613		15,867		16,480
2025	604		15,306		15,910
2026	36		14,901		14,937
2027	22		14,521		14,543
Thereafter	—		222,299		222,299
Total minimum lease payments	$	1,741	$	295,270	$	297,011
Less: imputed interest			162,326
Total leases receivable			$	132,944

Other (NW Holdings):
Remainder of 2023	$	38	$	—	$	38
2024	52		—		52
2025	53		—		53
2026	56		—		56
2027	57		—		57
Thereafter	857		—		857
Total minimum lease payments	$	1,113	$	—	$	1,113
NW Holdings:
Remainder of 2023	$	504	$	12,376	$	12,880
2024	665		15,867		16,532
2025	657		15,306		15,963
2026	92		14,901		14,993
2027	79		14,521		14,600
Thereafter	857		222,299		223,156
Total minimum lease payments	$	2,854	$	295,270	$	298,124
Less: imputed interest			162,326
Total leases receivable			$	132,944

Lease Expense

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

	Three Months Ended March 31,
In thousands	2023		2022
NW Natural:
Operating lease expense	$	1,775	$	1,727
Short-term lease expense	80		163
Other (NW Holdings):
Operating lease expense	$	40	$	7
NW Holdings:
Operating lease expense	$	1,815	$	1,734
Short-term lease expense	80		163

Operating Lease, Lease Asset and Liabilities

Supplemental balance sheet information related to operating leases as of March 31, 2023 and 2022 and December 31, 2022 is as follows:

In thousands	March 31,				December 31,
	2023		2022		2022
NW Natural:
Operating lease right of use asset	$	72,077	$	74,361	$	72,720
Operating lease liabilities - current liabilities	$	1,538	$	1,286	$	1,363
Operating lease liabilities - non-current liabilities	77,840		79,125		78,345
Total operating lease liabilities	$	79,378	$	80,411	$	79,708
Other (NW Holdings):
Operating lease right of use asset	$	622	$	55	$	709
Operating lease liabilities - current liabilities	$	162	$	17	$	151
Operating lease liabilities - non-current liabilities	462		37		620
Total operating lease liabilities	$	624	$	54	$	771
NW Holdings:
Operating lease right of use asset	$	72,699	$	74,416	$	73,429
Operating lease liabilities - current liabilities	$	1,700	$	1,303	$	1,514
Operating lease liabilities - non-current liabilities	78,302		79,162		78,965
Total operating lease liabilities	$	80,002	$	80,465	$	80,479

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	March 31,				December 31,
	2023		2022		2022
Weighted-average remaining lease term (years)	17.0		18.0		17.2
Weighted-average discount rate	7.3	%	7.2	%	7.3	%

Lessee, Operating Lease, Liability, Maturity

Maturities of operating lease liabilities at March 31, 2023 were as follows:

In thousands	NW Natural		Other (NW Holdings)		NW Holdings
Remainder of 2023	$	5,402	$	148	$	5,550
2024	7,299		196		7,495
2025	7,185		183		7,368
2026	7,353		140		7,493
2027	7,530		107		7,637
Thereafter	108,901		12		108,913
Total lease payments	143,670		786		144,456
Less: imputed interest	64,292		162		64,454
Total lease obligations	79,378		624		80,002
Less: current obligations	1,538		162		1,700
Long-term lease obligations	$	77,840	$	462	$	78,302

Lessee, Leases, Supplemental Cash Flow Information

Supplemental cash flow information related to leases was as follows:

	Three Months Ended March 31,
In thousands	2023		2022
NW Natural:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,767	$	1,733
Finance cash flows from finance leases	173		75
Right of use assets obtained in exchange for lease obligations
Operating leases	$	—	$	14
Finance leases	173		100
Other (NW Holdings):
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	39	$	6
Right of use assets obtained in exchange for lease obligations
Finance leases	$	90	$	—
NW Holdings:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,806	$	1,739
Finance cash flows from finance leases	173		75
Right of use assets obtained in exchange for lease obligations
Operating leases	$	—	$	14
Finance leases	263		100