Pension Plans and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2023

Retirement Benefits, Description [Abstract]

Pension Plans and Other Postretirement Benefit Plans

NOTE 7. PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS

Avista Utilities

The Company contributed $6.7 million in cash to the pension plan for the six months ended June 30, 2023, and expects to contribute $10.0 million in 2023.

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 six months ended June 30 (dollars in thousands):

	Pension Benefits						Other Postretirement Benefits
	2023			2022			2023			2022
Three months ended June 30:
Service cost	$	3,100		$	6,229		$	532		$	1,097
Interest cost		8,521			6,520			1,909			1,384
Expected return on plan assets		(10,922	)		(10,950	)		(891	)		(700	)
Amortization of prior service cost		123			75			(263	)		(275	)
Net loss recognition		1,185			939			(8	)		870
Net periodic benefit cost	$	2,007		$	2,813		$	1,279		$	2,376
Six months ended June 30:
Service cost	$	7,994		$	12,000		$	1,350		$	2,160
Interest cost		15,753			13,427			2,953			2,824
Expected return on plan assets		(21,844	)		(21,901	)		(1,782	)		(1,400	)
Amortization of prior service cost		246			150			(526	)		(550	)
Net loss recognition		2,024			2,087			525			1,760
Net periodic benefit cost	$	4,173		$	5,763		$	2,520		$	4,794

Total service costs in the table above are recognized in the same accounts as the associated 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.