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Northwest Natural Holding (NWN)

Filed: 4 Aug 21, 8:00pm

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Exhibit 99.1
        
For Immediate Release                                        
August 5, 2021

NW Natural Holdings Reports Second Quarter 2021 Results
PORTLAND, ORE. — Northwest Natural Holding Company, (NYSE: NWN) (NW Natural Holdings), reported financial results and highlights including:
Reported a net loss of $0.02 per share for the second quarter of 2021, compared to a net loss of $0.17 per share from continuing operations for the same period in 2020
Earned net income of $1.92 per share for the first six months of 2021, compared to earnings from continuing operations of $1.41 per share for the same period in 2020
Added nearly 12,000 natural gas meters in the last 12 months with a growth rate of 1.6%
Filed a multi-party settlement in the Washington general rate case
Continued working to contract for renewable natural gas, including issuing a request for proposal in July 2021
Reaffirmed 2021 earnings guidance in the range of $2.40 to $2.60 per share

"The Company continues to perform well, and we're executing on our growth opportunities," said David H. Anderson, president and CEO of NW Natural Holdings. "Our mission is to continue providing essential energy and water services to customers safely and reliably, striving to put renewables on our natural gas pipeline, and investing in water and wastewater utilities."
For the second quarter of 2021, net income increased $4.4 million to a $0.7 million net loss (or $0.02 per share), compared to a net loss from continuing operations of $5.1 million (or $0.17 per share) for the same period in 2020. Results reflected new rates in Oregon for our natural gas utility, customer growth, and lower financial impacts from COVID-19, partially offset by higher operations and maintenance expenses and higher depreciation and general tax expenses as we continued to invest in our gas utility system.

Year-to-date net income increased $15.7 million to $58.8 million (or $1.92 per share), compared to $43.1 million (or $1.41 per share) for the same period in 2020. Results reflected new rates in Oregon for our natural gas utility, customer growth, and lower financial impacts from COVID-19, partially offset by higher depreciation and general tax expenses and higher operations and maintenance expenses. In addition, net income from our other activities increased primarily due to higher asset management revenues.

KEY EVENTS AND INITIATIVES
The after-tax drivers below are based on a statutory tax rate of 26.5%.

Settlement Filed in NW Natural's Washington General Rate Case
On December 18, 2020, NW Natural filed a request for a general rate increase with the Washington Utilities and Transportation Commission (WUTC). Approximately 10% of NW Natural’s revenues are derived from its Washington customers. The original filing included a requested increase in annual revenue requirements over two years to recover operating costs and infrastructure and technology investments. This included a $6.3 million increase in the first year beginning November 1, 2021 (Year One) and a $3.2 million increase in the second year beginning November 1, 2022 (Year Two).

On July 27, 2021, NW Natural and other parties filed a settlement with the WUTC. Under the multi-party settlement, NW Natural's revenue requirement would increase $5.0 million in Year One and up to an additional $3.0 million increase in Year Two. The settlement included a cost of capital of 6.814% for both years and rate base of $247.3 million as of
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November 1, 2022 or an increase of $31.2 million for Year 1 and $21.4 million for Year 2. The settlement is subject to review and approval by the WUTC with new rates requested to take effect Nov. 1, 2021.

Coronavirus (COVID-19)
NW Natural Holdings continues to operate with a focus on the safety of our employees and customers. We benefit from a resilient business model with nearly 90% of our natural gas utility margin coming from the residential and commercial sectors and a majority of our utility margin decoupled and weather normalized. Customer growth from residential construction and conversions remained strong. The number of commercial customers has been stable for several consecutive quarters. The customer growth rate was 1.6% for the 12 months ended June 30, 2021.

We estimate the financial effects of COVID-19 in the income statement to be $1.7 million (after-tax) for the first half of 2021, compared to approximately $4 million (after-tax) for the same period in 2020. The change in financial effects year-over-year includes $1.8 million (after-tax) from 2020 that was subsequently deferred to a regulatory asset in the third quarter of 2020. The 2021 financial effects include $0.7 million (after-tax) of revenue we expect to recognize in a future period related to forgone late fees. The remaining $1.0 million (after-tax) will not be recovered through rates as it primarily relates to lower natural gas distribution margin from customers that stopped natural gas service and lower usage from customers that are not covered under decoupled rate schedules.

February 2021 Winter Weather Event
In February 2021, NW Natural experienced a severe winter storm in its service territory. This event coincided with the weather event that affected much of the mid-continent of the United States and resulted in elevated gas prices across the country. To meet expected demand, we purchased additional natural gas supplies at higher than anticipated prices. However, our third-party marketer provided incremental asset management revenues, which more than offset the cost of the incremental gas purchases. The effect of these transactions was a $6.5 million benefit for customers and a net benefit to shareholders of $2.8 million (after-tax) from the combined effect of asset management revenues reflected in NW Natural's other segment offset by lower utility margin from a loss on the Oregon gas cost incentive sharing mechanism.

Renewable Natural Gas (RNG)
NW Natural continues to pursue RNG for the natural gas pipeline under the landmark Oregon Senate Bill 98, which supports renewable energy procurement and investment by natural gas utilities. NW Natural has options to invest up to a total estimated $38 million in four separate RNG development projects that will access biogas derived from water treatment at Tyson Foods’ processing plants. Construction on our first RNG facility with BioCarbN and Tyson Foods' is expected to begin in September 2021 with completion and commissioning planned for early 2022. In July 2021, we signed a multi-year RNG purchase agreement with Element Markets. With the addition of this most recent contract, NW Natural has signed agreements with options to purchase or develop RNG totaling about 2% of NW Natural’s annual sales volume in Oregon, enough to heat about 36,000 homes. Additionally, in July 2021, NW Natural initiated a request for proposal (RFP) for additional RNG purchase or investment opportunities.

2020 Environment, Social, and Governance (ESG) Report Issued
On August 2, 2021, we issued our second ESG report, which outlines some of the important work NW Natural Holdings is focused on. The report highlights our longstanding commitments and progress related to safety, environmental stewardship, and taking care of our employees and communities. It also features goals that we're pursuing related to a renewable future and carbon neutral vision for our gas utility, diversifying into and growing our water and wastewater utility business, and actively working to continue advancing diversity, equity and inclusion in our workplace and our wider community. Additional information is available on our investor relations website.

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SECOND QUARTER RESULTS
The following financial comparisons are for the second quarter of 2021 and 2020 with individual year-over-year drivers below presented on an after-tax basis using a statutory tax rate of 26.5% unless otherwise noted.

NW Natural Holdings' second quarter results are summarized by business segment in the table below:
Three Months Ended June 30,
20212020Change
In thousands, except per share dataAmountPer ShareAmountPer ShareAmountPer Share
Net income (loss) from continuing operations:
Natural Gas Distribution segment(1,381)$(0.05)$(6,347)$(0.21)$4,966 $0.16 
Other657 0.03 1,215 0.04 (558)(0.01)
Consolidated$(724)$(0.02)$(5,132)$(0.17)$4,408 $0.15 
Diluted Shares30,664 30,537 127 

Natural Gas Distribution Segment
Natural Gas Distribution segment net income increased $5.0 million (or $0.16 per share) primarily reflecting new rates in Oregon as a result of a general rate case, which was effective beginning Nov. 1, 2020 and lower COVID financial impacts.

Margin increased $8.5 million reflecting new rates in Oregon and customer growth, which collectively contributed $7.0 million. In addition, lower COVID financial impacts contributed $0.4 million.

Operations and maintenance expense increased $2.6 million as a result of higher expenses mainly from higher employee benefit costs, professional service fees, and higher lease expense associated with our new headquarters and operations center, partially offset by lower expenses related to COVID. Depreciation expense and general taxes increased $2.3 million related to higher property, plant, and equipment as we continue to invest in our system.

Interest expense decreased $0.8 million mainly due to repaying the financings undertaken in March 2020 as a precautionary measure to support liquidity as the pandemic unfolded.

Other
Other net income decreased $0.6 million (or $0.01 per share) reflecting higher project costs at the holding company.

YEAR-TO-DATE RESULTS
The following financial comparisons are for the first six months of 2021 and 2020 with individual year-over-year drivers below presented on an after-tax basis using a statutory tax rate of 26.5% unless otherwise noted.

NW Natural Holdings' year-to-date results are summarized by business segment in the table below:

Six Months Ended June 30,
20212020Change
In thousands, except per share dataAmountPer ShareAmountPer ShareAmountPer Share
Net income from continuing operations:
Natural Gas Distribution segment$52,544 $1.71 $41,596 $1.36 $10,948 $0.35 
Other6,249 0.21 1,548 0.05 4,701 0.16 
Consolidated$58,793 $1.92 $43,144 $1.41 $15,649 $0.51 
Diluted Shares30,671 30,559 112 

Natural Gas Distribution Segment
Natural Gas Distribution segment net income increased $10.9 million (or $0.35 per share) primarily reflecting new rates in Oregon as a result of a general rate case, which was effective beginning Nov. 1, 2020 and lower COVID financial impacts.
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Margin increased $22.1 million reflecting new rates in Oregon and customer growth, which collectively contributed $22.6 million. This was partially offset by a $2.1 million increase in loss from the gas cost incentive sharing mechanism as a result of purchasing higher priced gas during a February cold weather event than what was forecasted for the year.
Operations and maintenance expense increased $4.7 million as a result of higher expenses mainly from increased employee compensation and benefit costs, higher lease expense associated with our new headquarters and operations center, and professional service fees, partially offset by lower costs associated with COVID. Depreciation expense and general taxes increased $5.5 million related to higher property, plant, and equipment.

Other
Other net income increased $4.7 million (or $0.16 per share) reflecting $5.3 million of higher net income from NW Natural's other activities offset by a loss of $0.6 million from NW Natural Holdings' other activities. For NW Natural, the benefit in other activities was primarily driven by higher asset management revenues from the aforementioned February 2021 weather event. NW Natural Holding's other activities reported higher project costs at the holding company.

BALANCE SHEET AND CASH FLOWS
During the first six months of 2021, the Company generated $194.3 million in operating cash flows or an increase of $32.2 million compared to the same period in 2020 due to higher net income and lower net working capital requirements. The Company used $127.9 million in investing activities during the first six months of 2021 primarily for natural gas utility capital expenditures, compared to $160.4 million used in investing activities during the same period in 2020 for utility capital expenditures and the acquisition of several water and wastewater utilities. Net cash used in financing activities was $73.5 million for the first six months of 2021 or a change of $201.8 million compared to the same period in 2020 primarily due to several financings undertaken in March 2020 that strengthened our liquidity position as a precaution as the COVID-19 pandemic unfolded. As of June 30, 2021, NW Natural Holdings held cash of $20.1 million.

2021 GUIDANCE
NW Natural Holdings reaffirmed 2021 earnings guidance in the range of $2.40 to $2.60 per share. This guidance assumes continued customer growth, average weather conditions, and no significant changes in prevailing regulatory policies, mechanisms, or outcomes, or significant local, state or federal laws, legislation or regulations.
DIVIDEND DECLARED
In 2021, the Board of Directors of NW Natural Holdings declared a quarterly dividend of $0.48 cents per share on the Company’s common stock. The dividend is payable on August 13, 2021 to shareholders of record on July 30, 2021, reflecting an annual indicated dividend rate of $1.92 per share. Future dividends are subject to Board of Director discretion and approval.

CONFERENCE CALL AND WEBCAST
As previously announced, NW Natural Holdings will host a conference call and webcast today to discuss its second quarter 2021 financial and operating results.
Date and Time:
Thursday, August 5, 2021
8 a.m. PT (11 a.m. ET)
Phone Numbers:
United States: 1-866-267-6789
Canada: 1-855-669-9657
International: 1-412-902-4110

The call will also be webcast in a listen-only format for the media and general public and can be accessed at ir.nwnaturalholdings.com. A replay of the conference call will be available on our website and by dialing 1-877-344-7529 (U.S.), 1-855-669-9658 (Canada), and 1-412-317-0088 (international). The replay access code is 10154449.

ABOUT NW NATURAL HOLDINGS
Northwest Natural Holding Company, (NYSE: NWN) (NW Natural Holdings), is headquartered in Portland, Oregon and has been doing business for over 160 years in the Pacific Northwest. It owns NW Natural Gas Company (NW Natural), NW Natural Water Company (NW Natural Water), and other business interests.

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NW Natural is a local distribution company that currently provides natural gas service to approximately 2.5 million people in more than 140 communities through more than 780,000 meters in Oregon and Southwest Washington with one of the most modern pipeline systems in the nation. NW Natural consistently leads the industry with high J.D. Power & Associates customer satisfaction scores. NW Natural owns and operates 20 Bcf of underground gas storage capacity in Oregon.

NW Natural Water provides water distribution and wastewater services to communities throughout the Pacific Northwest and Texas. NW Natural Water currently serves approximately 64,000 people through about 27,000 connections. Learn more about our water business at nwnaturalwater.com.
 
Additional information is available at nwnaturalholdings.com.

Investor and Media Contact:
Nikki Sparley
Phone: 503-721-2530
Email: nikki.sparley@nwnatural.com


Forward-Looking Statements
This report, and other presentations made by NW Holdings from time to time, may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipates," "assumes," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements regarding the following: plans, objectives, assumptions, estimates, expectations, timing, goals, strategies, commitments, future events, investments, capital expenditures, targeted capital structure, risks, risk profile, stability, acquisitions and timing, completion and integration thereof, the likelihood and success associated with any transaction, utility system and infrastructure investments, system modernization, reliability and resiliency, global, national and local economies, customer and business growth, customer satisfaction ratings, weather, performance and service during weather events, customer rates or rate recovery and the timing and magnitude of potential rate changes, environmental remediation cost recoveries, environmental initiatives, decarbonization and the role of natural gas and the gas delivery system, including use of renewable sources, renewable natural gas purchases, projects or investments and timing, magnitude and completion thereof, renewable hydrogen projects or investments and timing, magnitude and completion thereof, procurement of renewable natural gas or hydrogen for customers, strategic goals and visions, the water and wastewater acquisition and investment strategy and financial effects of water and wastewater acquisitions, diversity, equity and inclusion initiatives, operating plans of third parties, financial results, including estimated income, availability and sources of liquidity, expenses, positions, revenues, returns, cost of capital, timing, and earnings and earnings guidance, dividends, commodity costs and sourcing asset management activities, performance, timing, outcome, or effects of regulatory proceedings or mechanisms or approvals, including WUTC approval of the Washington general rate case multi-party settlement, regulatory prudence reviews, anticipated regulatory actions or filings, accounting treatment of future events, effects of legislation or changes in laws or regulations, effects, extent, severity and duration of COVID-19 and resulting economic disruption, the impact of mitigating factors and other efforts to mitigate risks posed by its spread, ability of our workforce, customers or suppliers to operate or conduct business, COVID-19 financial impact, expenses, cost savings measures and cost recovery including through regulatory deferrals and the timing and magnitude thereof, impact on capital projects, governmental actions and timing thereof, including actions to reopen the economy, and other statements that are other than statements of historical facts.

Forward-looking statements are based on current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by the forward-looking statements. You are therefore cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future operational, economic or financial performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are discussed by reference to the factors described in Part I, Item 1A "Risk Factors", and Part II, Item 7 and Item 7A "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosure about Market Risk" in the most recent Annual Report on Form 10-K and in Part I, Items 2 and 3 "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk", and Part II, Item 1A, "Risk Factors", in the quarterly reports filed thereafter.

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All forward-looking statements made in this report and all subsequent forward-looking statements, whether written or oral and whether made by or on behalf of NW Holdings or NW Natural, are expressly qualified by these cautionary statements. Any forward-looking statement speaks only as of the date on which such statement is made, and NW Holdings and NW Natural undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. New factors emerge from time to time and it is not possible to predict all such factors, nor can it assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements.


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NORTHWEST NATURAL HOLDINGS
Consolidated Income Statement and Financial Highlights (Unaudited)
Second Quarter 2021
Three Months EndedSix Months EndedTwelve Months Ended
In thousands, except per share amounts, customer, and degree day dataJune 30,June 30,June 30,
20212020Change20212020Change20212020Change
Operating revenues$148,917 $134,971 10%$464,863 $420,122 11%$818,420 $757,703 8%
Operating expenses:
Cost of gas41,193 41,210 153,403 149,748 2266,410 264,095 1
Operations and maintenance50,047 43,983 14102,238 92,904 10189,463 180,127 5
Environmental remediation1,509 1,622 (7)5,286 5,627 (6)9,350 11,673 (20)
General taxes8,914 8,373 620,283 18,268 1137,093 33,750 10
Revenue taxes5,671 4,454 2718,335 16,197 1332,429 30,100 8
Depreciation and amortization28,144 25,836 956,241 50,511 11109,413 98,048 12
Other operating expenses815 551 481,747 1,479 183,969 3,191 24
Total operating expenses136,293 126,029 8357,533 334,734 7648,127 620,984 4
Income from operations12,624 8,942 41107,330 85,388 26170,293 136,719 25
Other income (expense), net(2,597)(3,040)(15)(6,139)(6,615)(7)(13,468)(12,936)4
Interest expense, net11,028 12,706 (13)22,154 23,174 (4)42,032 45,000 (7)
Income (loss) before income taxes(1,001)(6,804)(85)79,037 55,599 42114,793 78,783 46
Income tax expense (benefit)(277)(1,672)(83)20,244 12,455 6328,871 15,797 83
Net income (loss) from continuing operations(724)(5,132)(86)58,793 43,144 3685,922 62,986 36
Income (loss) from discontinued operations, net of tax— 280 (100)— (498)(100)7,006 (2,901)(342)
Net income (loss)$(724)$(4,852)(85)$58,793 $42,646 38$92,928 $60,085 55
Common shares outstanding:
Average diluted for period30,664 30,537 30,671 30,559 30,636 30,517 
End of period30,672 30,546 30,672 30,546 30,672 30,546 
Per share of common stock information:
Diluted earnings (loss) from continuing operations$(0.02)$(0.17)$1.92 $1.41 $2.80 $2.06 
Diluted earnings (loss) from discontinued operations, net of tax— 0.01 — (0.01)0.23 (0.10)
Diluted earnings (loss)(0.02)(0.16)1.92 1.40 3.03 1.96 
Dividends paid per share0.4800 0.4775 0.9600 0.9550 1.9175 1.9075 
Book value, end of period30.09 28.94 30.09 28.94 30.09 28.94 
Market closing price, end of period52.52 55.79 52.52 55.79 52.52 55.79 
Capital structure, end of period:
Common stock equity43.2 %42.7 %43.2 %42.7 %43.2 %42.7 %
Long-term debt42.8 %44.3 %42.8 %44.3 %42.8 %44.3 %
Short-term debt (including current maturities of long-term debt)14.0 %13.0 %14.0 %13.0 %14.0 %13.0 %
Total100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Natural Gas Distribution segment operating statistics:
Meters - end of period780,279 768,304 1.6%780,279 768,304 1.6%780,279 768,304 1.6%
Volumes in therms:
Residential and commercial sales102,469 99,815 400,291 386,687 690,875 700,474 
Industrial sales and transportation111,245 107,398 244,543 241,443 468,726 481,025 
Total volumes sold and delivered213,714 207,213 644,834 628,130 1,159,601 1,181,499 
Operating revenues:
Residential and commercial sales$120,360 $109,399 $398,944 $364,803 $695,487 $649,391 
Industrial sales and transportation14,093 12,667 31,472 29,861 60,289 58,183 
Other distribution revenues396 986 968 1,944 1,755 
Other regulated services4,765 4,921 9,550 9,847 18,825 19,653 
Total operating revenues139,614 126,992 440,952 405,479 776,545 728,982 
Less: Cost of gas41,249 41,265 153,515 149,860 266,635 264,319 
Less: Environmental remediation expense1,509 1,622 5,286 5,627 9,350 11,673 
Less: Revenue taxes5,650 4,454 18,305 16,197 32,399 30,100 
Margin, net$91,206 $79,651 $263,846 $233,795 $468,161 $422,890 
Degree days:
Average (25-year average)305 308 1,631 1,650 2,687 2,723 
Actual182 189 (4)%1,443 1,404 3%2,423 2,503 (3)%
Percent colder (warmer) than average weather(40)%(39)%(12)%(15)%(10)%(8)%
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NORTHWEST NATURAL HOLDINGS
Consolidated Balance Sheets (Unaudited)June 30,
In thousands20212020
Assets:
Current assets:
Cash and cash equivalents$20,084 $137,057 
Accounts receivable60,713 35,196 
Accrued unbilled revenue13,592 15,393 
Allowance for uncollectible accounts(3,283)(1,592)
Regulatory assets60,672 30,021 
Derivative instruments46,168 5,996 
Inventories39,024 44,009 
Gas reserves8,444 13,646 
Income taxes receivable6,000 — 
Other current assets22,427 20,318 
Discontinued operations current assets— 16,392 
Total current assets273,841 316,436 
Non-current assets:
Property, plant, and equipment3,849,792 3,608,902 
Less: Accumulated depreciation1,093,863 1,062,299 
Total property, plant, and equipment, net2,755,929 2,546,603 
Gas reserves29,852 41,459 
Regulatory assets330,710 324,358 
Derivative instruments7,912 3,958 
Other investments47,725 62,130 
Operating lease right of use asset, net76,294 78,566 
Assets under sales-type leases141,408 146,208 
Goodwill69,313 70,183 
Other non-current assets50,516 51,446 
Total non-current assets3,509,659 3,324,911 
Total assets$3,783,500 $3,641,347 
Liabilities and equity:
Current liabilities:
Short-term debt$240,000 $233,000 
Current maturities of long-term debt60,274 35,209 
Accounts payable97,854 79,903 
Taxes accrued15,143 18,535 
Interest accrued7,425 7,234 
Regulatory liabilities103,210 41,126 
Derivative instruments3,393 3,067 
Operating lease liabilities1,228 931 
Other current liabilities43,946 54,323 
Discontinued operations current liabilities— 13,574 
Total current liabilities572,473 486,902 
Long-term debt915,501 918,887 
Deferred credits and other non-current liabilities:
Deferred tax liabilities325,600 297,995 
Regulatory liabilities645,046 632,400 
Pension and other postretirement benefit liabilities203,854 218,493 
Derivative instruments453 1,658 
Operating lease liabilities80,088 80,159 
Other non-current liabilities117,659 120,852 
Total deferred credits and other non-current liabilities1,372,700 1,351,557 
Equity:
Common stock569,785 562,766 
Retained earnings365,501 331,648 
Accumulated other comprehensive loss(12,460)(10,413)
Total equity922,826 884,001 
Total liabilities and equity$3,783,500 $3,641,347 
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NORTHWEST NATURAL HOLDINGS
Consolidated Statements of Cash Flows (Unaudited)Six Months Ended June 30,
In thousands20212020
Operating activities:
Net income$58,793 $42,646 
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization56,241 50,511 
Regulatory amortization of gas reserves7,597 8,567 
Deferred income taxes1,048 (2,004)
Qualified defined benefit pension plan expense7,874 8,892 
Contributions to qualified defined benefit pension plans(9,590)(8,470)
Deferred environmental expenditures, net(9,625)(9,897)
Amortization of environmental remediation5,286 5,627 
Other1,610 (5,931)
Changes in assets and liabilities:
Receivables, net73,133 73,954 
Inventories3,666 (52)
Income and other taxes21,467 20,966 
Accounts payable(17,239)(18,919)
Deferred gas costs(26,962)115 
Asset optimization revenue sharing36,872 (11,657)
Decoupling mechanism(6,860)4,281 
Other, net(9,030)3,967 
Discontinued operations— (547)
Cash provided by operating activities194,281 162,049 
Investing activities:
Capital expenditures(130,108)(122,282)
Acquisitions, net of cash acquired(55)(37,940)
Leasehold improvement expenditures(163)(7,519)
Proceeds from the sale of assets2,234 7,905 
Other209 263 
Discontinued operations— (846)
Cash used in investing activities(127,883)(160,419)
Financing activities:
Proceeds from common stock issued— 68 
Long-term debt issued55,000 150,000 
Long-term debt retired(35,000)(75,000)
Proceeds from term loan due within one year100,000 150,000 
Repayments of commercial paper, maturities greater than 90 days(195,025)— 
Change in other short-term debt, net30,500 (66,100)
Cash dividend payments on common stock(27,842)(27,679)
Other(1,175)(3,007)
Cash (used in) provided by financing activities(73,542)128,282 
Increase (decrease) in cash, cash equivalents and restricted cash(7,144)129,912 
Cash, cash equivalents and restricted cash, beginning of period35,454 12,636 
Cash, cash equivalents and restricted cash, end of period$28,310 $142,548 
Supplemental disclosure of cash flow information:
Interest paid, net of capitalization$21,971 $23,156 
Income taxes paid, net of refunds7,405 544 
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents$20,084 $137,057 
Restricted cash included in other current assets8,2265,491
Cash, cash equivalents and restricted cash$28,310 $142,548 

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