Self-insured retention

  


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|   | Nine Months Ended June 30 |
|   | Pension Benefits |  | Other Benefits |
|  | 2022 |  | 2021 |  | 2022 |  | 2021 |
|   | (In thousands) |
| Components of net periodic pension cost: |  |  |  |  |  |  |  |
| Service cost | $ | 12,970  |  |  | $ | 13,834  |  |  | $ | 7,676  |  |  | $ | 12,917  |  |
| Interest cost (1) | 15,190  |  |  | 15,072  |  |  | 8,050  |  |  | 7,981  |  |
| Expected return on assets (1) | (22,149) |  |  | (20,934) |  |  | (9,937) |  |  | (7,841) |  |
|  |  |  |  |  |  |  |  |
| Amortization of prior service cost (credit) (1) | (174) |  |  | (174) |  |  | (9,925) |  |  | 130  |  |
| Amortization of actuarial (gain) loss (1) | 5,853  |  |  | 9,405  |  |  | —  |  |  | —  |  |
| Settlements(1) | —  |  |  | 8,999  |  |  | —  |  |  | —  |  |
| Net periodic pension cost | $ | 11,690  |  |  | $ | 26,202  |  |  | $ | (4,136) |  |  | $ | 13,187  |  |

(1)    The components of net periodic cost other than the service cost component are included in the line item other non-operating expense in the condensed consolidated statements of comprehensive income or are capitalized on the condensed consolidated balance sheets as a regulatory asset or liability, as described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021. For the nine months ended June 30, 2022 we contributed $11.1 million to our postretirement medical plans. We anticipate contributing a total of between $15 million and $25 million to our postretirement plans during fiscal 2022.  
10.    Commitments and ContingenciesLitigation and Environmental MattersIn the normal course of business, we are subject to various legal and regulatory proceedings. For such matters, we record liabilities when they are considered probable and estimable, based on currently available facts, our historical experience and our estimates of the ultimate outcome or resolution of the liability in the future. While the outcome of these proceedings is uncertain and a loss in excess of the amount we have accrued is possible though not reasonably estimable, it is the opinion of management that any amounts exceeding the accruals will not have a material adverse impact on our financial position, results of operations or cash flows.We maintain liability insurance for various risks associated with the operation of our natural gas pipelines and facilities, including for property damage and bodily injury. These liability insurance policies generally require us to be responsible for the first $1.0 million (self-insured retention) of each incident. The National Transportation Safety Board (NTSB) held a public meeting on January 12, 2021 to determine the probable cause of the incident that occurred at a Dallas, Texas residence on February 23, 2018 that resulted in one fatality and injuries to four other residents. At the meeting, the Board deliberated and voted on proposed findings of fact, a probable cause statement, and safety recommendations. On February 8, 2021, the NTSB issued its final report that included an Executive Summary, Findings, Probable Cause, and Recommendations. Also on February 8, 2021, safety recommendations letters were distributed to recommendation recipients, including Atmos Energy. Atmos Energy timely provided a written response on May 7, 2021. Following the release of the NTSB’s final report, the Railroad Commission of Texas (RRC) completed its safety evaluation related to the same incident finding four alleged violations and initiated an enforcement proceeding to pursue administrative penalties totaling $1.6 million. Atmos Energy is working with the RRC to resolve the alleged violations and satisfy the administrative penalties.The NTSB is investigating a worksite accident that occurred in Farmersville, Texas on June 28, 2021 that resulted in two fatalities and injuries to two others. Together with the Railroad Commission of Texas and the Pipeline and Hazardous Materials Safety Administration, Atmos Energy is a party to the investigation and in that capacity is working closely with all parties to help determine the cause of this incident. Three civil actions have been filed in Dallas, Texas against Atmos Energy and one of its contractors in response to the accident.We are a party to various other litigation and environmental-related matters or claims that have arisen in the ordinary course of our business. While the results of such litigation and response actions to such environmental-related matters or claims cannot be predicted with certainty, we continue to believe the final outcome of such litigation and matters or claims will not have a material adverse effect on our financial condition, results of operations or cash flows.Purchase CommitmentsOur distribution divisions maintain supply contracts with several vendors that generally cover a period of up to one year. Commitments for estimated base gas volumes are established under these contracts on a monthly basis at contractually 20
