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BENEFIT PLANS: Benefit Plans Level 3 (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Accumulated Other Comprehensive Income (Loss)

The table below presents changes in components of accumulated other comprehensive income (AOCI), net of tax, during the years ended December 31, 2019, 2018, and 2017 (in thousands of dollars). Items in parentheses indicate reductions to AOCI.



	Year Ended December 31,
	2019			2018			2017
Defined benefit pension items
Balance at beginning of period	$	(22,844	)	$	(30,964	)	$	(20,882	)
Other comprehensive income before reclassifications	(15,392		)	5,234			(7,872		)
Amounts reclassified out of AOCI to net income	1,952			2,886			1,882
Net current-period other comprehensive income	(13,440		)	8,120			(5,990		)
Cumulative effect of change in accounting principle⁽¹⁾	—			—			(4,092		)
Balance at end of period	$	(36,284	)	$	(22,844	)	$	(30,964	)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents information about IDACORP’s and Idaho Power’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018 (in thousands of dollars):



	December 31, 2019								December 31, 2018
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds and commercial paper
IDACORP⁽¹⁾	$	64,173	$	—	$	—	$	64,173	$	97,833	$	—	$	—	$	97,833
Idaho Power	26,510		—		—		26,510		79,228		—		—		79,228
Derivatives	392		13		—		405		3,655		—		—		3,655
Equity securities	42,738		—		—		42,738		36,488		—		—		36,488
Liabilities:
Derivatives	$	814	$	32	$	—	$	846	$	870	$	104	$	—	$	974

(1) Holding company only. Does not include amounts held by Idaho Power.

Benefit Obligations [Member]

Defined Benefit Plan Disclosure

Schedule of Assumptions Used

The following table sets forth the weighted-average assumptions used at the end of each year to determine benefit obligations for all Idaho Power-sponsored pension and postretirement benefits plans:



	Pension Plan				SMSP				Postretirement Benefits
	2019		2018		2019		2018		2019		2018
Discount rate	3.60	%	4.55	%	3.65	%	4.60	%	3.60	%	4.60	%
Rate of compensation increase⁽¹⁾	4.37	%	4.25	%	4.75	%	4.75	%	—		—
Medical trend rate	—		—		—		—		6.7	%	6.3	%
Dental trend rate	—		—		—		—		4.0	%	4.0	%
Measurement date	12/31/2019		12/31/2018		12/31/2019		12/31/2018		12/31/2019		12/31/2018

(1) The 2019 rate of compensation increase assumption for the pension plan includes an inflation component of 2.40% plus a 1.97% composite merit increase component that is based on employees' years of service. Merit salary increases are assumed to be 8.0% for employees in their first year of service and scale down to 0.6% for employees in their fortieth year of service and beyond.

Net Periodic Benefit Cost [Member]

Defined Benefit Plan Disclosure

Schedule of Assumptions Used

The following table sets forth the weighted-average assumptions used to determine net periodic benefit cost for all Idaho Power-sponsored pension and postretirement benefit plans:



	Pension Plan						SMSP						Postretirement Benefits
	2019		2018		2017		2019		2018		2017		2019		2018		2017
Discount rate	4.55	%	3.95	%	4.45	%	4.60	%	3.95	%	4.45	%	4.60	%	3.95	%	4.45	%
Expected long-term rate of return on assets	7.50	%	7.50	%	7.50	%	—		—		—		6.75	%	6.75	%	6.75	%
Rate of compensation increase	4.37	%	4.25	%	4.17	%	4.75	%	4.75	%	4.75	%	—		—	%	—	%
Medical trend rate	—		—		—		—		—		—		6.7	%	6.3	%	6.8	%
Dental trend rate	—		—		—		—		—		—		4.0	%	4.0	%	4.0	%

Pension Plan

Defined Benefit Plan Disclosure

Schedule of Defined Benefit Plans Disclosures

The following table summarizes the changes in benefit obligations and plan assets of these plans (in thousands of dollars):



	Pension Plan						SMSP
	2019			2018			2019			2018

Change in projected benefit obligation:
Benefit obligation at January 1	$	951,857		$	999,344		$	102,318		$	110,303
Service cost	34,061			37,836			(181		)	(316		)
Interest cost	42,312			38,833			4,575			4,248
Actuarial loss (gain)	147,784			(84,758		)	17,888			(7,050		)
Plan amendment	—			—			2,839			—
Benefits paid	(41,262		)	(39,398		)	(4,996		)	(4,867		)
Projected benefit obligation at December 31	1,134,752			951,857			122,443			102,318
Change in plan assets:
Fair value at January 1	650,604			697,683			—			—
Actual return (loss) on plan assets	113,777			(47,681		)	—			—
Employer contributions	40,000			40,000			—			—
Benefits paid	(41,262		)	(39,398		)	—			—
Fair value at December 31	763,119			650,604			—			—
Funded status at end of year	$	(371,633	)	$	(301,253	)	$	(122,443	)	$	(102,318	)
Amounts recognized in the statement of financial position consist of:
Other current liabilities	$	—		$	—		$	(5,911	)	$	(5,158	)
Noncurrent liabilities	(371,633		)	(301,253		)	(116,532		)	(97,160		)
Net amount recognized	$	(371,633	)	$	(301,253	)	$	(122,443	)	$	(102,318	)
Amounts recognized in accumulated other comprehensive income consist of:
Net loss	$	347,785		$	278,720		$	45,851		$	30,496
Prior service cost	56			62			3,143			399
Subtotal	347,841			278,782			48,994			30,895
Less amount recorded as regulatory asset⁽¹⁾	(347,841		)	(278,782		)	—			—
Net amount recognized in accumulated other comprehensive income	$	—		$	—		$	48,994		$	30,895
Accumulated benefit obligation	$	958,586		$	814,549		$	109,966		$	94,630

(1) Changes in the funded status of the pension plan that would be recorded in accumulated other comprehensive income for an unregulated entity are recorded as a regulatory asset for Idaho Power as Idaho Power believes it is probable that an amount equal to the regulatory asset will be collected through the setting of future rates.

Schedule of Costs of Retirement Plans

The following table shows the components of net periodic benefit cost for these plans (in thousands of dollars). For purposes of calculating the expected return on plan assets, the market-related value of assets is equal to the fair value of the assets.



	Pension Plan									SMSP
	2019			2018			2017			2019			2018			2017
Service cost	$	34,061		$	37,836		$	33,742		$	(181	)	$	(316	)	$	759
Interest cost	42,312			38,833			38,957			4,575			4,248			4,315
Expected return on assets	(48,623		)	(52,302		)	(45,138		)	—			—			—
Amortization of net loss	13,564			13,558			13,190			2,533			3,788			2,963
Amortization of prior service cost	6			6			28			96			98			127
Net periodic pension cost	41,320			37,931			40,779			7,023			7,818			8,164
Regulatory deferral of net periodic benefit cost⁽¹⁾	(39,379		)	(36,153		)	(38,699		)	—			—			—
Previously deferred pension cost recognized⁽¹⁾	17,154			17,154			17,154			—			—			—
Net periodic benefit cost recognized for financial reporting⁽¹⁾⁽²⁾	$	19,095		$	18,932		$	19,234		$	7,023		$	7,818		$	8,164

(1) Net periodic benefit costs for the pension plan are recognized for financial reporting based upon the authorization of each regulatory jurisdiction in which Idaho Power operates. Under IPUC order, the Idaho portion of net periodic benefit cost is recorded as a regulatory asset and is recognized in the income statement as those costs are recovered through rates.

(2) Of total net periodic benefit cost recognized for financial reporting $15.1 million, $15.2 million, and $16.2 million respectively, was recognized in "Other operations and maintenance" and $11.0 million, and $11.6 million, and $11.2 million respectively, was recognized in "Other expense, net" on the consolidated statements of income of the companies for the twelve months ended December 31, 2019, 2018, and 2017.

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

The following table shows the components of other comprehensive (loss) income for the plans (in thousands of dollars):



	Pension Plan									SMSP
	2019			2018			2017			2019			2018			2017
Actuarial (loss) gain during the year	$	(82,631	)	$	(15,226	)	$	(26,608	)	$	(17,888	)	$	7,049		$	(10,635	)
Plan amendment service cost	—			—			—			(2,839		)	—			—
Reclassification adjustments for:
Amortization of net loss	13,564			13,558			13,190			2,533			3,788			2,963
Amortization of prior service cost	6			6			28			96			98			127
Adjustment for deferred tax effects	17,776			428			1,744			4,658			(2,815		)	1,555
Adjustment due to the effects of regulation	51,285			1,234			11,646			—			—			—
Other comprehensive (loss) income recognized related to pension benefit plans	$	—		$	—		$	—		$	(13,440	)	$	8,120		$	(5,990	)

Schedule of Expected Benefit Payments

The following table summarizes the expected future benefit payments of these plans (in thousands of dollars):



	2020		2021		2022		2023		2024		2025-2029
Pension Plan	$	40,727	$	42,674	$	44,576	$	46,670	$	48,694	$	273,700
SMSP	6,010		6,186		6,281		6,700		6,724		33,304

Schedule of Allocation of Plan Assets

Pension Asset Allocation Policy: The target allocation and actual allocations at December 31, 2019, for the pension asset portfolio by asset class is set forth below:



Asset Class	Target Allocation		Actual Allocation December 31, 2019
Debt securities	24	%	23	%
Equity securities	56	%	59	%
Real estate	7	%	6	%
Other plan assets	13	%	12	%
Total	100	%	100	%

Postretirement Benefits

Defined Benefit Plan Disclosure

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

The following table shows the components of other comprehensive income for the plan (in thousands of dollars):



	2019			2018			2017
Actuarial loss during the year	$	(249	)	$	(1,109	)	$	(2,964	)
Prior service cost arising during the year	—			—			(212		)
Reclassification adjustments for:
Immediate recognition of loss from temporary deviation⁽¹⁾	—			4,216			—
Reclassification adjustments for amortization of prior service cost	48			47			47
Adjustment for deferred tax effects	52			270			807
Adjustment due to the effects of regulation	149			(3,424		)	2,322
Other comprehensive income related to postretirement benefit plans	$	—		$	—		$	—

(1) In 2018, a loss associated with a temporary deviation from the cost-sharing provisions of the substantive plan was recognized in "Other expense, net" on the consolidated statements of income of the companies.

Schedule of Changes in Projected Benefit Obligations

The following table summarizes the changes in benefit obligation and plan assets (in thousands of dollars):



	2019			2018
Change in accumulated benefit obligation:
Benefit obligation at January 1	$	66,453		$	70,051
Service cost	853			1,051
Interest cost	2,989			2,643
Actuarial loss (gain)	5,298			(2,688		)
Benefits paid⁽¹⁾	(4,564		)	(4,604		)
Plan amendments				—
Benefit obligation at December 31	71,029			66,453
Change in plan assets:
Fair value of plan assets at January 1	33,391			38,294
Actual return (loss) on plan assets	7,269			(1,330		)
Employer contributions⁽¹⁾	3,529			1,031
Benefits paid⁽¹⁾	(4,564		)	(4,604		)
Fair value of plan assets at December 31	39,625			33,391
Funded status at end of year (included in noncurrent liabilities)	$	(31,404	)	$	(33,062	)

(1) Contributions and benefits paid are each net of $3.3 million and $3.1 million of plan participant contributions for 2019 and 2018, respectively.

Schedule of Accumulated Other Comprehensive Income (Loss)

Amounts recognized in accumulated other comprehensive income consist of the following (in thousands of dollars):



	2019			2018
Net loss	$	(81	)	$	(330	)
Prior service cost	174			222
Subtotal	93			(108		)
Less amount recognized in regulatory assets	(93		)	108
Net amount recognized in accumulated other comprehensive income	$	—		$	—

Schedule of Net Benefit Costs

The net periodic postretirement benefit cost was as follows (in thousands of dollars):



	2019			2018			2017
Service cost	$	853		$	1,051		$	973
Interest cost	2,989			2,643			2,783
Expected return on plan assets	(2,220		)	(2,467		)	(2,307		)
Immediate recognition of loss from temporary deviation⁽¹⁾	—			4,216			—
Amortization of prior service cost	48			47			47
Net periodic postretirement benefit cost	$	1,670		$	5,490		$	1,496

Schedule of Expected Benefit Payments

The following table summarizes the expected future benefit payments of the postretirement benefit plan (in thousands of dollars):



	2020		2021		2022		2023		2024		2025-2028
Expected benefit payments	$	5,552	$	4,932	$	4,750	$	4,532	$	4,289	$	19,133

Other Pension Plan [Member]

Defined Benefit Plan Disclosure

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the fair value of the plans' investments by asset category (in thousands of dollars).



	Level 1		Level 2		Level 3		Total
Assets at December 31, 2019
Cash and cash equivalents	$	10,878	$	—	$	—	$	10,878
Short-term bonds	21,628		—		—		21,628
Intermediate bonds	22,369		134,931		—		157,300
Long-term bonds	—		—		—		—
Equity Securities: Large-Cap	92,852		—		—		92,852
Equity Securities: Mid-Cap	81,663		—		—		81,663
Equity Securities: Small-Cap	67,075		—		—		67,075
Equity Securities: Micro-Cap	31,469		—		—		31,469
Equity Securities: International	13,817		—		—		13,817
Equity Securities: Emerging Markets	8,245		—		—		8,245
Plan assets measured at NAV (not subject to hierarchy disclosure)
Commingled Fund: Equity Securities: Global and International							114,975
Commingled Fund: Equity Securities: Emerging Markets							40,059
Commingled Fund: Commodities fund							34,793
Real estate							47,570
Private market investments							40,795
Total	$	349,996	$	134,931	$	—	$	763,119
Postretirement plan assets⁽¹⁾	$	641	$	38,984	$	—	$	39,625



	Level 1		Level 2		Level 3		Total
Assets at December 31, 2018
Cash and cash equivalents	$	9,717	$	—	$	—	$	9,717
Short-term bonds	20,644		—		—		20,644
Intermediate bonds	20,595		87,646		—		108,241
Long-term bonds	—		40,857		—		40,857
Equity Securities: Large-Cap	71,176		—		—		71,176
Equity Securities: Mid-Cap	71,419		—		—		71,419
Equity Securities: Small-Cap	53,401		—		—		53,401
Equity Securities: Micro-Cap	30,387		—		—		30,387
Equity Securities: International	7,104		—		—		7,104
Equity Securities: Emerging Markets	6,519		—		—		6,519
Plan assets measured at NAV (not subject to hierarchy disclosure)
Commingled Fund: Equity Securities: International							95,653
Commingled Fund: Equity Securities: Emerging Markets							29,757
Commingled Fund: Commodities fund							30,842
Real estate							39,846
Private market investments							35,041
Total	$	290,962	$	128,503	$	—	$	650,604
Postretirement plan assets⁽¹⁾	$	758	$	32,633	$	—	$	33,391

(1) The postretirement benefits assets are primarily life insurance contracts.