Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023 and 2022:


	Pension Benefits				Post-Retirement Medical Benefits
(dollars in thousands)	2023		2022		2023		2022
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year	$	190,678	$	259,751	$	2,014	$	2,686
Service cost	3,196		5,644		130		129
Interest cost	10,142		7,401		106		60
Actuarial (gain) loss	8,525		(72,710)		49		(570)
Benefits/expenses paid	(9,578)		(9,408)		(334)		(291)
Projected benefit obligation at end of year	$	202,963	$	190,678	$	1,965	$	2,014

Changes in Plan Assets:
Fair value of plan assets at beginning of year	$	186,906	$	233,524	$	11,240	$	13,773
Actual return on plan assets	25,031		(40,299)		1,921		(2,242)
Employer contributions	2,946		3,089		265		263
Benefits/expenses paid	(9,578)		(9,408)		(599)		(554)
Fair value of plan assets at end of year	$	205,305	$	186,906	$	12,827	$	11,240

Funded Status:
Overfunded/(underfunded) amount recognized	$	2,342	$	(3,772)	$	10,862	$	9,226


	Pension Benefits						Post-Retirement Medical Benefits
(dollars in thousands)	2023			2022			2023			2022
Amounts recognized on the balance sheets:
Non-current assets	$	2,342		$	—		$	10,862		$	9,226
Current liabilities	—			—			—			—
Non-current liabilities	—			(3,772)			—			—
Net amount recognized	$	2,342		$	(3,772)		$	10,862		$	9,226
Amounts recognized in regulatory assets (liabilities) consist of:
Prior service cost (credit)	$	1,454		$	1,889		$	—		$	—
Net loss (gain)	(1,899)			4,123			(6,272)			(5,846)
Regulatory assets (liabilities)	(445)			6,012			(6,272)			(5,846)
Prefunded plan costs	(1,897)			(2,240)			(4,590)			(3,380)
Net liability (asset) recognized	$	(2,342)		$	3,772		$	(10,862)		$	(9,226)

Changes in plan assets and benefit obligations recognized in regulatory assets (liabilities):
Regulatory asset (liability) at beginning of year	$	6,012		$	25,691		$	(5,846)		$	(9,839)
Net (loss) gain	(6,023)			(19,245)			(1,395)			2,259
New prior service cost	—			—			—			—
Amortization of prior service (cost) credit	(434)			(434)			—			—
Amortization of net gain (loss)	—			—			969			1,734
Total change in regulatory asset (liability)	(6,457)			(19,679)			(426)			3,993
Regulatory asset (liability) at end of year	$	(445)		$	6,012		$	(6,272)		$	(5,846)

Net periodic pension costs	$	3,289		$	313		$	(1,210)		$	(2,132)
Change in regulatory asset (liability)	(6,457)			(19,679)			(426)			3,993
Total recognized in net periodic pension cost and regulatory asset (liability)	$	(3,168)		$	(19,366)		$	(1,636)		$	1,861

Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	$	202,963		$	190,678		$	1,965		$	2,014
Accumulated benefit obligation	$	192,986		$	181,376		N/A			N/A
Fair value of plan assets	$	205,305		$	186,906		$	12,827		$	11,240

Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	5.16		%	5.41		%	5.04		%	5.34		%
Rate of compensation increase	*			*			N/A			N/A

•Age-graded ranging from 2.5% to 7.0%.

The following provides a reconciliation of benefit obligations, funded status of the SERP, as well as a summary of significant estimates at December 31, 2023 and 2022:


(dollars in thousands)	2023		2022
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	30,807	$	36,089
Service cost	1,248		1,191
Interest cost	1,644		1,022
Actuarial loss (gain)	840		(6,522)
Benefits paid	(945)		(973)
Benefit obligation at end of year	$	33,594	$	30,807
Changes in Plan Assets:
Fair value of plan assets at beginning and end of year	—		—
Funded Status:
Net amount recognized as accrued cost	$	(33,594)	$	(30,807)


(in thousands)	2023			2022
Amounts recognized on the balance sheets:
Current liabilities	$	(942)		$	(942)
Non-current liabilities	(32,652)			(29,865)
Net amount recognized	$	(33,594)		$	(30,807)
Amounts recognized in regulatory assets consist of:
Prior service cost	$	—		$	—
Net loss	2,869			1,995
Regulatory assets	2,869			1,995
Unfunded accrued cost	30,725			28,812
Net liability recognized	$	33,594		$	30,807

Changes in plan assets and benefit obligations recognized in regulatory assets consist of:
Regulatory asset at beginning of year	$	1,995		$	9,097
Net gain (loss)	840			(6,522)
Amortization of prior service credit	—			—
Amortization of net gain (loss)	34			(580)
Total change in regulatory asset	874			(7,102)
Regulatory asset at end of year	$	2,869		$	1,995

Net periodic pension cost	$	2,858		$	2,793
Change in regulatory asset	874			(7,102)
Total recognized in net periodic pension and regulatory asset	$	3,732		$	(4,309)

Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	$	33,594		$	30,807
Accumulated benefit obligation	30,794			28,157
Fair value of plan assets	—			—
Weighted-average assumptions used to determine benefit obligations:
Discount rate	5.15		%	5.42		%
Rate of compensation increase	*			*

* Age graded from 4.0% to 5.5% 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 2023, 2022 and 2021 are as follows:


	Pension Benefits						Post-Retirement Medical Benefits
(dollars in thousands, except percent)	2023		2022		2021		2023		2022		2021
Components of Net Periodic Benefits Cost:
Service cost	$3,196		$5,644		$6,316		$130		$129		$149
Interest cost	10,142		7,401		6,833		106		60		110
Expected return on plan assets	(10,483)		(13,166)		(12,541)		(477)		(587)		(537)

Amortization of prior service cost (credit)	434		434		434		—		—		—
Amortization of actuarial (gain) loss	—		—		3,817		(969)		(1,734)		(1,417)
Net periodic pension cost under accounting standards	$3,289		$313		$4,859		$(1,210)		$(2,132)		$(1,695)
Regulatory adjustment	(281)		—		(1,277)		—		—		—
Total expense recognized, before surcharges and allocation to overhead pool	$3,008		$313		$3,582		$(1,210)		$(2,132)		$(1,695)

Weighted-average assumptions used to determine net periodic cost:
Discount rate	5.41	%	2.89	%	2.55	%	5.34	%	2.46	%	2.20	%
Expected long-term return on plan assets	5.75	%	5.75	%	6.00	%	*		*		*
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 2023 and 2022 and 5.75% for union plan and 4.0% for non-union (net of income taxes) in 2021.

** Age-graded ranging from 2.5% to 7.0%.

The components of SERP expense, before allocation to the overhead pool, for 2023, 2022 and 2021 are as follows:


(dollars in thousands, except percent)	2023			2022			2021
Components of Net Periodic Benefits Cost:
Service cost	$	1,248		$	1,191		$	1,392
Interest cost	1,644			1,022			915

Amortization of net (gain) loss	(34)			580			1,678
Net periodic pension cost	$	2,858		$	2,793		$	3,985

Weighted-average assumptions used to determine net periodic cost:
Discount rate	5.42		%	2.87		%	2.52		%
Rate of compensation increase	*			*			*

* Age graded from 4.0% to 5.5% 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, 2023 and 2022, by asset category are as follows:


	Pension Benefits				Post-Retirement Medical Benefits
Asset Category	2023		2022		2023		2022
Actual Asset Allocations:
Equity securities	56	%	56	%	60	%	59	%
Debt securities	39	%	39	%	39	%	39	%
Real Estate Funds	5	%	5	%	—	%	—	%
Cash equivalents	—	%	—	%	1	%	2	%
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, 2023 and 2022.


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, 2023 and 2022:


	Net Asset Value as of December 31, 2023
(dollars in thousands)	Fair Value		Unfunded Commitments	Redemption Frequency	Redemption Notice Period
Cash equivalents	$	814	—	N/A	N/A
Fixed income fund	80,737		—	Daily	Daily
Equity securities:
U.S. small/mid cap funds	19,162		—	Daily	Daily
U.S. large cap funds	49,770		—	Daily	Daily
International funds	45,377		—	Daily	Daily
Total equity funds	114,309		—
Real estate funds	9,445		—	Daily	Daily
Total	$	205,305	—

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

Fixed income fund

73,863

—

Daily

Equity securities:

U.S. small/mid cap funds

17,136

—

Daily

U.S. large cap funds

44,572

—

Daily

International funds

42,239

—

Daily

Total equity funds

103,947

Real estate funds

8,295

—

Daily

Total

186,906

—

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, 2023 and 2022:


	Fair Value as of December 31, 2023
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Fair Value of Post-Retirement Plan Assets:
Cash equivalents	$	189	—	—	$	189
Fixed income	5,001		—	—	5,001
U.S. equity securities	7,637		—	—	7,637
Total investments measured at fair value	$	12,827	—	—	$	12,827


	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

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, 2023 and 2022:


	Fair Value as of December 31, 2023
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Fair Value of Assets held in Rabbi Trust:
Cash equivalents	$	6	—	—	$	6
Fixed income securities	13,676		—	—	13,676
Equity securities	20,461		—	—	20,461
Total investments measured at fair value	$	34,143	—	—	$	34,143


	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

Schedule of estimated future benefit payments

Estimated future benefit payments at December 31, 2023 are as follows (in thousands):


	Pension Benefits		Post-Retirement Medical Benefits
2024	$	10,604	$	295
2025	11,089		279
2026	11,539		276
2027	12,075		252
2028	12,568		226
Thereafter	70,006		713
Total	$	127,881	$	2,041

Benefit Payments: Estimated future benefit payments for the SERP at December 31, 2023 are as follows (in thousands):


2024	$	942
2025	2,344
2026	2,519
2027	2,630
2028	2,604
Thereafter	13,551
Total	$	24,590