Pension Plans and Other Postretirement Benefit Plans

9 Months Ended

Sep. 30, 2022

Retirement Benefits, Description [Abstract]

Pension Plans and Other Postretirement Benefit Plans

NOTE 6. PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS

Avista Utilities

The Company contributed $42.0 million in cash to the pension plan for the nine months ended September 30, 2022, and does not expect further contributions in 2022.

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
	2022			2021			2022			2021
Three months ended September 30:
Service cost	$	5,914		$	6,412		$	1,095		$	1,062
Interest cost		6,578			6,528			1,343			1,305
Expected return on plan assets		(10,950	)		(9,835	)		(700	)		(509	)
Amortization of prior service cost		75			75			(275	)		(275	)
Net loss recognition		997			1,592			826			777
Net periodic benefit cost	$	2,614		$	4,772		$	2,289		$	2,360
Nine months ended September 30:
Service cost	$	17,914		$	18,912		$	3,255		$	2,967
Interest cost		20,005			19,638			4,167			3,990
Expected return on plan assets		(32,851	)		(29,314	)		(2,100	)		(1,967	)
Amortization of prior service cost		225			225			(825	)		(825	)
Net loss recognition		3,084			5,103			2,586			3,196
Net periodic benefit cost	$	8,377		$	14,564		$	7,083		$	7,361

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.

The non-service portion of costs in the table above are recorded to other expense below income from operations in the Condensed Consolidated Statements of Income or capitalized as a regulatory asset. Approximately 40 percent of the costs are capitalized to regulatory assets and 60 percent is expensed to the income statement.