EMPLOYEE BENEFIT PLANS

9 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

NOTE 15 EMPLOYEE BENEFIT PLANS

Components of Net Periodic Benefit Cost

The following provides information at June 30, 2020 and 2019, related to the Company-sponsored domestic defined benefit pension plan, the Helmerich & Payne, Inc. Employee Retirement Plan (the “Pension Plan”):

	Three Months Ended June 30,						Nine Months Ended June 30,
(in thousands)	2020			2019			2020			2019
Interest cost	$	1,097		$	1,097		$	3,291		$	3,291
Expected return on plan assets	(1,381		)	(1,386		)	(4,143		)	(4,158		)
Recognized net actuarial loss	669			291			2,007			874
Settlement	$	1,814		$	1,548		$	1,814		$	1,548
Net pension expense	$	2,199		$	1,550		$	2,969		$	1,555

According to ASC 715, Compensation—Retirement Benefits, if the lump sum distributions made during a plan year exceed the total of the projected service cost and interest cost for the plan year, settlement accounting is required. Lump sum payments exceeded this threshold during both the three and nine months ended June 30, 2019 and three and nine months ended June 30, 2020. Accordingly, we recognized settlement expense of $1.5 million for the three and nine months ended June 30, 2019, and settlement expense of $1.8 million for the three and nine months ended June 30, 2020 in other expense within our Condensed Consolidated Statements of Operations.

Employer Contributions

We did not contribute to the Pension Plan during the nine months ended June 30, 2020. For the remainder of fiscal year 2020, we do not expect minimum contributions required by law to be needed; however, we may make contributions during the remainder of fiscal year 2020 if needed to fund unexpected distributions in lieu of liquidating pension assets.