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Investor Presentaiton

L (dollars in millions) Operating Income Interest Expense Other Income, net Income Before Taxes Income Tax Benefit Net Income Appendix 53 Operating to Net Income (Full Year) Twelve Months Ended December 31, 2020 2019 Variance $ 236.2 $ 276.9 $ (40.7) (14.7)% (96.8) 4.8 (95.1) (1.7) (1.8)% 0.4 4.4 1,237.0% 144.2 182.2 (38.0) (20.8)% 11.0 19.9 (8.9) (44.7)% $ 155.2 $ 202.1 $ (46.9) (23.2)% $1.7 million increase in interest expenses was primarily due to higher borrowings issued as a precautionary measure in order to increase our cash position and preserve financial flexibility in light of the uncertainty in the markets, partially offset by lower interest rates on our revolving credit facilities. $4.4 million increase in other income was primarily due to a $7.0 million decrease in pension expense that was partly offset by a $5.3 million decrease in the value of deferred shares held in trust for non-employee directors deferred compensation (both of which are offset in operating, general and administrative expense with no impact to net income), and higher capitalization of AFUDC. $8.9 million decrease in income tax benefit due primarily due to the release of approximately $22.8 million of unrecognized tax benefits in 2019, including $2.7 million of accrued interest and penalties, due to the lapse of statutes of limitation in the second quarter of 2019. NorthWestern Energy Delivering a Bright Future
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