Defined Benefit Pension Plans

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Defined Benefit Pension Plans

Defined Benefit Pension Plans

We sponsor both funded and unfunded defined benefit pension plans offering death and disability, retirement, and special termination benefits for certain of our international employees, primarily in Germany, France, Indonesia, India, and Italy. The defined benefit obligation is calculated annually by using the projected unit credit method. The measurement date for the pension plans was December 31, 2021.

Amounts recognized on the Consolidated Balance Sheets consist of:

In thousands	June 30, 2022		December 31, 2021
Liabilities
Current portion of pension benefit obligation in wages and benefits payable	$	3,393	$	3,088
Pension benefit obligation held for sale within other current liabilities	—		11,513
Long-term portion of pension benefit obligation	77,396		87,863
Pension benefit obligation, net	$	80,789	$	102,464

On November 2, 2021, Itron entered into an agreement to sell certain of its Gas device businesses and operations to Dresser Utility Solutions (Dresser). The related disposal group was classified as held for sale during the fourth quarter of 2021. The disposal group was removed from our balance sheet when the transaction closed on February 28, 2022. Refer to Note 17: Sale of Business for additional information on the transaction.

Our asset investment strategy focuses on maintaining a portfolio using primarily insurance funds, which are accounted for as investments and measured at fair value, in order to achieve our long-term investment objectives on a risk-adjusted basis. Our general funding policy for these qualified pension plans is to contribute amounts sufficient to satisfy regulatory funding standards of the respective countries for each plan.

Net periodic pension benefit cost for our plans include the following components:

	Three Months Ended June 30,				Six Months Ended June 30,
In thousands	2022		2021		2022		2021
Service cost	$	708	$	1,102	$	1,502	$	2,251
Interest cost	423		349		866		701
Expected return on plan assets	(80)		(88)		(163)		(177)
Amortization of prior service costs	18		17		36		34
Amortization of actuarial net loss	196		694		431		1,389
Net periodic benefit cost	$	1,265	$	2,074	$	2,672	$	4,198

The components of net periodic benefit cost, other than the service cost component, are included in total other income (expense) on the Consolidated Statements of Operations.