Leases

9 Months Ended

Sep. 30, 2023

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	2023		2022		2023		2022
Lease revenue
Operating leases	$	19	$	19	$	57	$	56
Sales-type leases	4,001		4,279		11,973		12,839
Total lease revenue	$	4,020	$	4,298	$	12,030	$	12,895

Lessor, Operating Lease, Payments to be Received, Maturity

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

In thousands	Operating		Sales-Type		Total
NW Natural:
Remainder of 2023	$	153	$	4,100	$	4,253
2024	603		15,867		16,470
2025	599		15,306		15,905
2026	36		14,901		14,937
2027	22		14,521		14,543
Thereafter	—		222,299		222,299
Total minimum lease payments	$	1,413	$	286,994	$	288,407
Less: imputed interest			156,626
Total leases receivable			$	130,368
Other (NW Holdings):
Remainder of 2023	$	13	$	—	$	13
2024	52		—		52
2025	53		—		53
2026	56		—		56
2027	57		—		57
Thereafter	857		—		857
Total minimum lease payments	$	1,088	$	—	$	1,088
NW Holdings:
Remainder of 2023	$	166	$	4,100	$	4,266
2024	655		15,867		16,522
2025	652		15,306		15,958
2026	92		14,901		14,993
2027	79		14,521		14,600
Thereafter	857		222,299		223,156
Total minimum lease payments	$	2,501	$	286,994	$	289,495
Less: imputed interest			156,626
Total leases receivable			$	130,368

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	2023		2022		2023		2022
NW Natural:
Operating lease expense	$	1,817	$	1,767	$	5,382	$	5,235
Short-term lease expense	198		105		556		684
Other (NW Holdings):
Operating lease expense	$	51	$	7	$	131	$	22
NW Holdings:
Operating lease expense	$	1,868	$	1,774	$	5,513	$	5,257
Short-term lease expense	198		105		556		684

Operating Lease, Lease Asset and Liabilities

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

In thousands	September 30,				December 31,
	2023		2022		2022
NW Natural:
Operating lease right of use asset	$	70,852	$	73,046	$	72,720
Operating lease liabilities - current liabilities	$	1,658	$	1,298	$	1,363
Operating lease liabilities - non-current liabilities	77,041		78,436		78,345
Total operating lease liabilities	$	78,699	$	79,734	$	79,708
Other (NW Holdings):
Operating lease right of use asset	$	625	$	99	$	709
Operating lease liabilities - current liabilities	$	157	$	63	$	151
Operating lease liabilities - non-current liabilities	434		33		620
Total operating lease liabilities	$	591	$	96	$	771
NW Holdings:
Operating lease right of use asset	$	71,477	$	73,145	$	73,429
Operating lease liabilities - current liabilities	$	1,815	$	1,361	$	1,514
Operating lease liabilities - non-current liabilities	77,475		78,469		78,965
Total operating lease liabilities	$	79,290	$	79,830	$	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	September 30,				December 31,
	2023		2022		2022
Weighted-average remaining lease term (years)	16.5		17.5		17.2
Weighted-average discount rate	7.3	%	7.3	%	7.3	%

Lessee, Operating Lease, Liability, Maturity

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

In thousands	NW Natural		Other (NW Holdings)		NW Holdings
Remainder of 2023	$	1,801	$	44	$	1,845
2024	7,307		183		7,490
2025	7,193		176		7,369
2026	7,361		153		7,514
2027	7,538		107		7,645
Thereafter	108,991		12		109,003
Total lease payments	140,191		675		140,866
Less: imputed interest	61,492		84		61,576
Total lease obligations	78,699		591		79,290
Less: current obligations	1,658		157		1,815
Long-term lease obligations	$	77,041	$	434	$	77,475

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	2023		2022		2023		2022
NW Natural:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,809	$	1,759	$	5,374	$	5,225
Finance cash flows from finance leases	196		92		369		474
Right of use assets obtained in exchange for lease obligations
Operating leases	$	—	$	—	$	81	$	—
Finance leases	196		6		369		226
Other (NW Holdings):
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	54	$	12	$	132	$	24
Right of use assets obtained in exchange for lease obligations
Operating leases	$	—	$	61	$	—	$	61
Finance leases	11		—		101		—
NW Holdings:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,863	$	1,771	$	5,506	$	5,249
Finance cash flows from finance leases	196		92		369		474
Right of use assets obtained in exchange for lease obligations
Operating leases	$	—	$	61	$	81	$	61
Finance leases	207		6		470		226