Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Pension Plan's funded status and amounts recognized in balance sheets and the components of net pension cost and accrued post-retirement liability

The following table sets forth the Pension Plan’s and post-retirement medical plan’s funded status and amounts recognized in Registrant’s balance sheets and the components of net pension cost and accrued liability at December 31, 2022 and 2021:


	Pension Benefits				Post-Retirement Medical Benefits
(dollars in thousands)	2022		2021		2022		2021
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year	$	259,751	$	272,786	$	2,686	$	5,906
Service cost	5,644		6,316		129		149
Interest cost	7,401		6,833		60		110
Actuarial (gain) loss	(72,710)		(17,682)		(570)		(3,165)
Benefits/expenses paid	(9,408)		(8,502)		(291)		(314)
Projected benefit obligation at end of year	$	190,678	$	259,751	$	2,014	$	2,686

Changes in Plan Assets:
Fair value of plan assets at beginning of year	$	233,524	$	213,147	$	13,773	$	12,313
Actual return on plan assets	(40,299)		25,390		(2,242)		1,773
Employer contributions	3,089		3,489		263		242
Benefits/expenses paid	(9,408)		(8,502)		(554)		(555)
Fair value of plan assets at end of year	$	186,906	$	233,524	$	11,240	$	13,773

Funded Status:
Net amount recognized as accrued pension cost	$	(3,772)	$	(26,227)	$	9,226	$	11,087


	Pension Benefits						Post-Retirement Medical Benefits
(dollars in thousands)	2022			2021			2022			2021
Amounts recognized on the balance sheets:
Non-current assets	$	—		$	—		$	9,226		$	11,087
Current liabilities	—			—			—			—
Non-current liabilities	(3,772)			(26,227)			—			—
Net amount recognized	$	(3,772)		$	(26,227)		$	9,226		$	11,087
Amounts recognized in regulatory assets consist of:
Prior service cost (credit)	$	1,889		$	2,323		$	—		$	—
Net loss (gain)	4,123			23,368			(5,846)			(9,839)
Regulatory assets (liabilities)	6,012			25,691			(5,846)			(9,839)
Unfunded accrued pension cost	(2,240)			536			(3,380)			(1,248)
Net liability (asset) recognized	$	3,772		$	26,227		$	(9,226)		$	(11,087)

Changes in plan assets and benefit obligations recognized in regulatory assets (liabilities):
Regulatory asset (liability) at beginning of year	$	25,691		$	60,473		$	(9,839)		$	(6,855)
Net (loss) gain	(19,245)			(30,531)			2,259			(4,401)
New prior service cost	—			—			—			—
Amortization of prior service (cost) credit	(434)			(434)			—			—
Amortization of net gain (loss)	—			(3,817)			1,734			1,417
Total change in regulatory asset (liability)	(19,679)			(34,782)			3,993			(2,984)
Regulatory asset (liability) at end of year	$	6,012		$	25,691		$	(5,846)		$	(9,839)

Net periodic pension costs	$	313		$	4,859		$	(2,132)		$	(1,695)
Change in regulatory asset (liability)	(19,679)			(34,782)			3,993			(2,984)
Total recognized in net periodic pension cost and regulatory asset (liability)	$	(19,366)		$	(29,923)		$	1,861		$	(4,679)

Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	$	190,678		$	259,751		$	2,014		$	2,686
Accumulated benefit obligation	$	181,376		$	243,412		N/A			N/A
Fair value of plan assets	$	186,906		$	233,524		$	11,240		$	13,773

Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	5.41		%	2.89		%	5.34		%	2.46		%
Rate of compensation increase	*			*			N/A			N/A

•Age-graded ranging from 3.0% to 8.0%.

The following provides a reconciliation of benefit obligations, funded status of the SERP, as well as a summary of significant estimates at December 31, 2022 and 2021:


(dollars in thousands)	2022		2021
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	36,089	$	36,602
Service cost	1,191		1,392
Interest cost	1,022		915
Actuarial (gain) loss	(6,522)		(2,213)
Benefits paid	(973)		(607)
Benefit obligation at end of year	$	30,807	$	36,089
Changes in Plan Assets:
Fair value of plan assets at beginning and end of year	—		—
Funded Status:
Net amount recognized as accrued cost	$	(30,807)	$	(36,089)


(in thousands)	2022			2021
Amounts recognized on the balance sheets:
Current liabilities	$	(942)		$	(949)
Non-current liabilities	(29,865)			(35,140)
Net amount recognized	$	(30,807)		$	(36,089)
Amounts recognized in regulatory assets consist of:
Prior service cost	$	—		$	—
Net loss	1,995			9,097
Regulatory assets	1,995			9,097
Unfunded accrued cost	28,812			26,992
Net liability recognized	$	30,807		$	36,089

Changes in plan assets and benefit obligations recognized in regulatory assets consist of:
Regulatory asset at beginning of year	$	9,097		$	12,988
Net loss	(6,522)			(2,213)
Amortization of prior service credit	—			—
Amortization of net loss	(580)			(1,678)
Total change in regulatory asset	(7,102)			(3,891)
Regulatory asset at end of year	$	1,995		$	9,097

Net periodic pension cost	$	2,793		$	3,985
Change in regulatory asset	(7,102)			(3,891)
Total recognized in net periodic pension and regulatory asset	$	(4,309)		$	94

Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	$	30,807		$	36,089
Accumulated benefit obligation	28,157			31,835
Fair value of plan assets	—			—
Weighted-average assumptions used to determine benefit obligations:
Discount rate	5.42		%	2.87		%
Rate of compensation increase	*			*

* Age graded from 4.5% to 4.0% per year.

Schedule of components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool

The components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool, for 2022, 2021 and 2020 are as follows:


	Pension Benefits									Post-Retirement Medical Benefits
(dollars in thousands, except percent)	2022			2021			2020			2022			2021			2020
Components of Net Periodic Benefits Cost:
Service cost	$	5,644		$	6,316		$	5,558		$	129		$	149		$	171
Interest cost	7,401			6,833			7,880			60			110			208
Expected return on plan assets	(13,166)			(12,541)			(11,798)			(587)			(537)			(510)

Amortization of prior service cost (credit)	434			434			435			—			—			—
Amortization of actuarial (gain) loss	—			3,817			1,935			(1,734)			(1,417)			(977)
Net periodic pension cost under accounting standards	$	313		$	4,859		$	4,010		$	(2,132)		$	(1,695)		$	(1,108)
Regulatory adjustment	—			(1,277)			(483)			—			—			—
Total expense recognized, before surcharges and allocation to overhead pool	$	313		$	3,582		$	3,527		$	(2,132)		$	(1,695)		$	(1,108)

Weighted-average assumptions used to determine net periodic cost:
Discount rate	2.89		%	2.55		%	3.43		%	2.46		%	2.20		%	3.12		%
Expected long-term return on plan assets	5.75		%	6.00		%	6.25		%	*			*			*
Rate of compensation increase	**			**			**			N/A			N/A			N/A

*5.50% for union plan and 3.9% for non-union (net of income taxes) in 2022, 5.75% for union plan and 4.0% for non-union (net of income taxes) in 2021, and 6.0% for union plan and 4.2% for non-union (net of income taxes) in 2020.

** Age-graded ranging from 3.0% to 8.0%.

The components of SERP expense, before allocation to the overhead pool, for 2022, 2021 and 2020 are as follows:


(dollars in thousands, except percent)	2022			2021			2020
Components of Net Periodic Benefits Cost:
Service cost	$	1,191		$	1,392		$	1,029
Interest cost	1,022			915			988

Amortization of net loss	580			1,678			843
Net periodic pension cost	$	2,793		$	3,985		$	2,860

Weighted-average assumptions used to determine net periodic cost:
Discount rate	2.87		%	2.52		%	3.36		%
Rate of compensation increase	*			*			4.00		%

* Age graded from 4.5% to 4.0% per year.

Schedule of actual allocation of plan assets

The Committee approves the target asset allocations. Registrant’s pension and post-retirement plan weighted-average asset allocations at December 31, 2022 and 2021, by asset category are as follows:


	Pension Benefits				Post-Retirement Medical Benefits
Asset Category	2022		2021		2022		2021
Actual Asset Allocations:
Equity securities	56	%	56	%	59	%	60	%
Debt securities	39	%	38	%	39	%	39	%
Real Estate Funds	5	%	6	%	—	%	—	%
Cash equivalents	—	%	—	%	2	%	1	%
Total	100	%	100	%	100	%	100	%

Schedule of pension and post-retirement plan target asset allocations

Equity securities did not include AWR’s Common Shares as of December 31, 2022 and 2021.


Target Asset Allocations:	Pension Benefits		Post-retirement Medical Benefits
Equity securities	60	%	60	%
Debt securities	40	%	40	%
Total	100	%	100	%

Summary of fair value, measured by net asset value, of the pension investment assets

The following tables set forth the fair value, measured by net asset value, of the pension investment assets as of December 31, 2022 and 2021:


	Net Asset Value as of December 31, 2022
(dollars in thousands)	Fair Value		Unfunded Commitments	Redemption Frequency	Redemption Notice Period
Cash equivalents	$	801	—	N/A	N/A
Fixed income fund	73,863		—	Daily	Daily
Equity securities:
U.S. small/mid cap funds	17,136		—	Daily	Daily
U.S. large cap funds	44,572		—	Daily	Daily
International funds	42,239		—	Daily	Daily
Total equity funds	103,947		—
Real estate funds	8,295		—	Daily	Daily
Total	$	186,906	—

Net Asset Value as of December 31, 2021

(dollars in thousands)

Fair Value

Unfunded Commitments

Redemption Frequency

Redemption Notice Period

Cash equivalents

637

—

N/A

Fixed income fund

87,760

—

Daily

Equity securities:

U.S. small/mid cap funds

22,143

—

Daily

U.S. large cap funds

58,451

—

Daily

International funds

50,961

—

Daily

Total equity funds

131,555

Real estate funds

13,572

—

Daily

Total

233,524

—

Schedule of pension and post-retirement plans' investment assets measured at fair value

The following tables set forth by level, within the fair value hierarchy, the post-retirement plan’s investment assets measured at fair value as of December 31, 2022 and 2021:


	Fair Value as of December 31, 2022
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Fair Value of Post-Retirement Plan Assets:
Cash equivalents	$	215	—	—	$	215
Fixed income	4,380		—	—	4,380
U.S. equity securities	6,645		—	—	6,645
Total investments measured at fair value	$	11,240	—	—	$	11,240


	Fair Value as of December 31, 2021
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Fair Value of Post-Retirement Plan Assets:
Cash equivalents	$	92	—	—	$	92
Fixed income	5,409		—	—	5,409
U.S. equity securities	8,272		—	—	8,272
Total investments measured at fair value	$	13,773	—	—	$	13,773

The following tables set forth by level, within the fair value hierarchy, the Rabbi Trust investment assets measured at fair value as of December 31, 2022 and 2021:


	Fair Value as of December 31, 2022
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Fair Value of Assets held in Rabbi Trust:
Cash equivalents	$	9	—	—	$	9
Fixed income securities	10,962		—	—	10,962
Equity securities	16,560		—	—	16,560
Total investments measured at fair value	$	27,531	—	—	$	27,531


	Fair Value as of December 31, 2021
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Fair Value of Assets held in Rabbi Trust:
Cash equivalents	$	8	—	—	$	8
Fixed income securities	12,442		—	—	12,442
Equity securities	19,018		—	—	19,018
Total investments measured at fair value	$	31,468	—	—	$	31,468

Schedule of estimated future benefit payments

Estimated future benefit payments at December 31, 2022 are as follows (in thousands):


	Pension Benefits		Post-Retirement Medical Benefits
2023	$	9,764	$	313
2024	10,505		284
2025	10,986		272
2026	11,429		257
2027	11,927		228
Thereafter	67,205		747
Total	$	121,816	$	2,101

Benefit Payments: Estimated future benefit payments for the SERP at December 31, 2022 are as follows (in thousands):


2023	$	942
2024	2,103
2025	2,121
2026	2,329
2027	2,435
Thereafter	12,406
Total	$	22,336