Pension Plans and Other Postretirement Benefit Plans

9 Months Ended

Sep. 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 $10.0 million in cash to the pension plan for the nine months ended September 30, 2023, and does not expect further contributions 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 nine months ended September 30 (dollars in thousands):

	Pension Benefits						Other Postretirement Benefits
	2023			2022			2023			2022
Three months ended September 30:
Service cost	$	3,098		$	5,914		$	559		$	1,095
Interest cost		8,524			6,578			1,872			1,343
Expected return on plan assets		(10,922	)		(10,950	)		(891	)		(700	)
Amortization of prior service cost (credit)		123			75			(263	)		(275	)
Net loss (gain) recognition		1,184			997			(54	)		826
Net periodic benefit cost	$	2,007		$	2,614		$	1,223		$	2,289
Nine months ended September 30:
Service cost	$	11,092		$	17,914		$	1,909		$	3,255
Interest cost		24,277			20,005			4,825			4,167
Expected return on plan assets		(32,766	)		(32,851	)		(2,673	)		(2,100	)
Amortization of prior service cost (credit)		369			225			(789	)		(825	)
Net loss recognition		3,208			3,084			471			2,586
Net periodic benefit cost	$	6,180		$	8,377		$	3,743		$	7,083

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.