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Pension Plans And Other Postretirement Benefit Plans
 9 Months Ended
Sep. 30, 2018
Retirement Benefits, Description [Abstract]  
Pension Plans and Other Postretirement Benefit Plans
PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS
Avista Utilities
Avista Utilities’ pension and other postretirement plans have not changed during the nine months ended September 30, 2018. The Company’s funding policy is to contribute at least the minimum amounts that are required to be funded under the Employee Retirement Income Security Act, but not more than the maximum amounts that are currently deductible for income tax purposes. The Company contributed $22.0 million in cash to the pension plan for the nine months ended September 30, 2018 and does not expect to make any further contributions in 2018.
The Company uses a December 31 measurement date for its defined benefit pension and other postretirement benefit plans. The following table sets forth the components of net periodic benefit costs for the three and nine months ended September 30 (dollars in thousands):
 
Pension Benefits
 
Other Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
Three months ended September 30:
 
 
 
 
 
 
 
Service cost (a)
$
5,318

 
$
5,092

 
$
815

 
$
799

Interest cost
6,634

 
6,976

 
1,261

 
1,374

Expected return on plan assets
(8,101
)
 
(7,900
)
 
(550
)
 
(475
)
Amortization of prior service cost
71

 
—

 
(299
)
 
(274
)
Net loss recognition
1,761

 
2,517

 
1,044

 
1,168

Net periodic benefit cost
$
5,683

 
$
6,685

 
$
2,271

 
$
2,592

Nine months ended September 30:
 
 
 
 
 
 
 
Service cost (a)
$
16,218

 
$
15,226

 
$
2,423

 
$
2,422

Interest cost
19,566

 
20,903

 
3,655

 
4,147

Expected return on plan assets
(24,601
)
 
(23,700
)
 
(1,550
)
 
(1,425
)
Amortization of prior service cost
221

 
—

 
(905
)
 
(898
)
Net loss recognition
5,691

 
7,380

 
3,261

 
3,761

Net periodic benefit cost
$
17,095

 
$
19,809

 
$
6,884

 
$
8,007


(a)
Total service costs in the table above are recorded to the same accounts as labor expense. Labor and benefits expense is recorded to various projects based on whether the work is a capital project or an operating expense. Approximately 40 percent of all labor and benefits is capitalized to utility property and 60 percent is expensed to utility other operating expenses.
See Note 2 for discussion regarding the adoption of ASU No. 2017-07 and its impact to the presentation of pension and other postretirement benefits in the Condensed Consolidated Statements of Income and the Condensed Consolidated Balance Sheets.