Leases

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Lease Revenue

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

	Three Months Ended June 30,				Six Months Ended June 30,
In thousands	2023		2022		2023		2022
Lease revenue
Operating leases	$	19	$	19	$	38	$	37
Sales-type leases	3,993		4,279		7,972		8,560
Total lease revenue	$	4,012	$	4,298	$	8,010	$	8,597

Lessor, Operating Lease, Payments to be Received, Maturity

Total future minimum lease payments to be received under non-cancelable leases at June 30, 2023 are as follows:

In thousands	Operating		Sales-Type		Total
NW Natural:
Remainder of 2023	$	311	$	8,225	$	8,536
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	$	1,586	$	291,119	$	292,705
Less: imputed interest			159,445
Total leases receivable			$	131,674
Other (NW Holdings):
Remainder of 2023	$	26	$	—	$	26
2024	52		—		52
2025	53		—		53
2026	56		—		56
2027	57		—		57
Thereafter	857		—		857
Total minimum lease payments	$	1,101	$	—	$	1,101
NW Holdings:
Remainder of 2023	$	337	$	8,225	$	8,562
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	$	2,687	$	291,119	$	293,806
Less: imputed interest			159,445
Total leases receivable			$	131,674

Lease Expense

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

	Three Months Ended June 30,				Six Months Ended June 30,
In thousands	2023		2022		2023		2022
NW Natural:
Operating lease expense	$	1,790	$	1,741	$	3,565	$	3,468
Short-term lease expense	278		416		358		579
Other (NW Holdings):
Operating lease expense	$	40	$	8	$	80	$	15
NW Holdings:
Operating lease expense	$	1,830	$	1,749	$	3,645	$	3,483
Short-term lease expense	278		416		358		579

Operating Lease, Lease Asset and Liabilities

Supplemental balance sheet information related to operating leases as of June 30, 2023 and 2022 and December 31, 2022 is as follows:

In thousands	June 30,				December 31,
	2023		2022		2022
NW Natural:
Operating lease right of use asset	$	71,508	$	73,706	$	72,720
Operating lease liabilities - current liabilities	$	1,598	$	1,298	$	1,363
Operating lease liabilities - non-current liabilities	77,490		78,789		78,345
Total operating lease liabilities	$	79,088	$	80,087	$	79,708
Other (NW Holdings):
Operating lease right of use asset	$	588	$	48	$	709
Operating lease liabilities - current liabilities	$	134	$	17	$	151
Operating lease liabilities - non-current liabilities	461		37		620
Total operating lease liabilities	$	595	$	54	$	771
NW Holdings:
Operating lease right of use asset	$	72,096	$	73,754	$	73,429
Operating lease liabilities - current liabilities	$	1,732	$	1,315	$	1,514
Operating lease liabilities - non-current liabilities	77,951		78,826		78,965
Total operating lease liabilities	$	79,683	$	80,141	$	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	June 30,				December 31,
	2023		2022		2022
Weighted-average remaining lease term (years)	16.8		17.7		17.2
Weighted-average discount rate	7.3	%	7.2	%	7.3	%

Lessee, Operating Lease, Liability, Maturity

Maturities of operating lease liabilities at June 30, 2023 were as follows:

In thousands	NW Natural		Other (NW Holdings)		NW Holdings
Remainder of 2023	$	3,610	$	83	$	3,693
2024	7,307		162		7,469
2025	7,193		155		7,348
2026	7,361		140		7,501
2027	7,538		107		7,645
Thereafter	108,991		12		109,003
Total lease payments	142,000		659		142,659
Less: imputed interest	62,912		64		62,976
Total lease obligations	79,088		595		79,683
Less: current obligations	1,598		134		1,732
Long-term lease obligations	$	77,490	$	461	$	77,951

Lessee, Leases, Supplemental Cash Flow Information

Supplemental cash flow information related to leases was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
In thousands	2023		2022		2023		2022
NW Natural:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,798	$	1,733	$	3,565	$	3,466
Finance cash flows from finance leases	—		307		173		382
Right of use assets obtained in exchange for lease obligations
Operating leases	$	81	$	(14)	$	81	$	—
Finance leases	—		120		173		220
Other (NW Holdings):
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	39	$	6	$	78	$	12
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	$	1,837	$	1,739	$	3,643	$	3,478
Finance cash flows from finance leases	—		307		173		382
Right of use assets obtained in exchange for lease obligations
Operating leases	$	81	$	(14)	$	81	$	—
Finance leases	—		120		263		220