BENEFIT PLANS: Benefit Plans Level 3 (Tables)

12 Months Ended

Dec. 31, 2015

Defined Benefit Plan Disclosure

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, 2015, 2014, and 2013 (in thousands of dollars). Items in parentheses indicate reductions to AOCI.

	Unrealized Gains and Losses on Available-for-Sale Securities			Defined Benefit Pension Items			Total
December 31, 2013
Balance at beginning of period	$	4,136		$	(21,252	)	$	(17,116	)
Other comprehensive income before reclassifications	2,951			2,840			5,791
Amounts reclassified out of AOCI	(7,087		)	1,859			(5,228		)
Net current-period other comprehensive income	(4,136		)	4,699			563
Balance at end of period	$	—		$	(16,553	)	$	(16,553	)
December 31, 2014
Balance at beginning of period	$	—		$	(16,553	)	$	(16,553	)
Other comprehensive income before reclassifications	—			(9,333		)	(9,333		)
Amounts reclassified out of AOCI	—			1,728			1,728
Net current-period other comprehensive income	—			(7,605		)	(7,605		)
Balance at end of period	$	—		$	(24,158	)	$	(24,158	)
December 31, 2015
Balance at beginning of period	$	—		$	(24,158	)	$	(24,158	)
Other comprehensive income before reclassifications	—			214			214
Amounts reclassified out of AOCI	—			2,668			2,668
Net current-period other comprehensive income	—			2,882			2,882
Balance at end of period	$	—		$	(21,276	)	$	(21,276	)

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, 2015 and 2014 (in thousands of dollars): 

	December 31, 2015								December 31, 2014
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds:
IDACORP - Parent	$	1,000	$	—	$	—	$	1,000	$	—	$	—	$	—	$	—
Idaho Power	10,000		—		—		10,000		100		—		—		100
Derivatives	340		64		—		404		506		128		—		634
Trading securities:  Equity securities	102		—		—		102		141		—		—		141
Available-for-sale securities: ETFs	24,459		—		—		24,459		44,942		—		—		44,942
Liabilities:
Derivatives	$	286	$	4,686	$	—	$	4,972	$	17	$	3,944	$	—	$	3,961

Benefit Obligations

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
	2015		2014		2015		2014		2015		2014
Discount rate	4.60	%	4.25	%	4.60	%	4.20	%	4.60	%	4.20	%
Rate of compensation increase(1)	4.11	%	4.30	%	4.50	%	4.50	%	—		—
Medical trend rate	—		—		—		—		9.7	%	6.4	%
Dental trend rate	—		—		—		—		5.0	%	5.0	%
Measurement date	12/31/2015		12/31/2014		12/31/2015		12/31/2014		12/31/2015		12/31/2014

⁽¹⁾ The 2015 rate of compensation increase assumption for the pension plan includes an inflation component of 2.50% plus a 1.61% 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% for employees in their fortieth year of service and beyond.

Net Periodic Benefit Cost

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
	2015		2014		2013		2015		2014		2013		2015		2014		2013
Discount rate	4.25	%	5.20	%	4.20	%	4.20	%	5.10	%	4.15	%	4.20	%	5.15	%	4.20	%
Expected long-term rate of return on assets	7.50	%	7.75	%	7.75	%	—		—		—		7.25	%	7.25	%	7.25	%
Rate of compensation increase	4.11	%	4.30	%	4.38	%	4.50	%	4.50	%	4.50	%	—		—		—
Medical trend rate	—		—		—		—		—		—		9.7	%	6.4	%	6.8	%
Dental trend rate	—		—		—		—		—		—		5.0	%	5.0	%	5.0	%

Pension and SMS 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
	2015			2014			2015			2014
Change in projected benefit obligation:
Benefit obligation at January 1	$	844,812		$	695,093		$	94,410		$	77,773
Service cost	33,164			25,292			1,689			1,645
Interest cost	35,171			35,415			3,868			3,856
Actuarial (gain) loss	(47,952		)	114,496			(352		)	15,324
Benefits paid	(29,672		)	(25,484		)	(4,226		)	(4,188		)
Projected benefit obligation at December 31	835,523			844,812			95,389			94,410
Change in plan assets:
Fair value at January 1	559,719			545,092			—			—
Actual return on plan assets	(9,431		)	10,111			—			—
Employer contributions	39,000			30,000			—			—
Benefits paid	(29,672		)	(25,484		)	—			—
Fair value at December 31	559,616			559,719			—			—
Funded status at end of year	$	(275,907	)	$	(285,093	)	$	(95,389	)	$	(94,410	)
Amounts recognized in the statement of financial position consist of:
Other current liabilities	$	—		$	—		$	(4,423	)	$	(4,193	)
Noncurrent liabilities	(275,907		)	(285,093		)	(90,966		)	(90,217		)
Net amount recognized	$	(275,907	)	$	(285,093	)	$	(95,389	)	$	(94,410	)
Amounts recognized in accumulated other comprehensive income consist of:
Net loss	$	253,212		$	263,350		$	34,260		$	38,808
Prior service cost	74			295			673			857
Subtotal	253,286			263,645			34,933			39,665
Less amount recorded as regulatory asset	(253,286		)	(263,645		)	—			—
Net amount recognized in accumulated other comprehensive income	$	—		$	—		$	34,933		$	39,665
Accumulated benefit obligation	$	714,994		$	719,617		$	86,838		$	84,684

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
	2015			2014			2013			2015		2014		2013
Service cost	$	33,164		$	25,292		$	31,357		$	1,689	$	1,645	$	2,178
Interest cost	35,171			35,415			31,830			3,868		3,856		3,258
Expected return on assets	(42,310		)	(42,289		)	(35,755		)	—		—		—
Amortization of net loss	13,927			3,911			17,118			4,195		2,618		2,840
Amortization of prior service cost	221			347			347			185		220		212
Net periodic pension cost	40,173			22,676			44,897			9,937		8,339		8,488
Adjustments due to the effects of regulation(1)	(21,173		)	12,124			(9,013		)	—		—		—
Net periodic benefit cost recognized for financial reporting	$	19,000		$	34,800		$	35,884		$	9,937	$	8,339	$	8,488

⁽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, income statement recognition of pension plan costs is deferred until costs are recovered through rates.

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

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

	Pension Plan									SMSP
	2015			2014			2013			2015			2014			2013
Actuarial (loss) gain during the year	$	(3,790	)	$	(146,674	)	$	154,261		$	353		$	(15,324	)	$	4,664
Reclassification adjustments for:
Amortization of net loss	13,927			3,911			17,118			4,195			2,618			2,840
Amortization of prior service cost	221			347			347			185			220			212
Adjustment for deferred tax effects	(4,050		)	55,678			(67,136		)	(1,851		)	4,881			(3,017		)
Adjustment due to the effects of regulation	(6,308		)	86,738			(104,590		)	—			—			—
Other comprehensive income recognized related to pension benefit plans	$	—		$	—		$	—		$	2,882		$	(7,605	)	$	4,699

Schedule of Expected Benefit Payments

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

	2016		2017		2018		2019		2020		2021-2025
Pension Plan	$	30,086	$	32,529	$	35,156	$	37,795	$	40,527	$	241,079
SMSP	4,516		4,582		4,371		4,547		4,964		25,659

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):

	2015			2014			2013
Actuarial gain (loss) during the year	$	2,413		$	(5,733	)	$	20,673
Reclassification adjustments for:
Amortization of net loss	—			—			98
Amortization of prior service cost	15			183			(229		)
Adjustment for deferred tax effects	(949		)	2,170			(8,031		)
Adjustment due to the effects of regulation	(1,479		)	3,380			(12,511		)
Other comprehensive income related to postretirement benefit plans	$	—		$	—		$	—

Schedule of Expected Benefit Payments

The following table summarizes the expected future benefit payments of the postretirement benefit plan and expected Medicare Part D subsidy receipts (in thousands of dollars):  

	2016		2017		2018		2019		2020		2021-2025
Expected benefit payments	$	4,010	$	4,050	$	4,100	$	4,150	$	4,190	$	21,030
Expected Medicare Part D subsidy receipts	380		430		470		510		560		3,480

Schedule of Changes in Projected Benefit Obligations

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

	2015			2014
Change in accumulated benefit obligation:
Benefit obligation at January 1	$	65,999		$	57,341
Service cost	1,235			1,011
Interest cost	2,678			2,841
Actuarial (gain) loss	(5,008		)	7,026
Benefits paid(1)	(2,511		)	(2,220		)
Benefit obligation at December 31	62,393			65,999
Change in plan assets:
Fair value of plan assets at January 1	38,375			37,111
Actual return on plan assets	85			3,888
Employer contributions(1)	(383		)	(404		)
Benefits paid(1)	(2,511		)	(2,220		)
Fair value of plan assets at December 31	35,566			38,375
Funded status at end of year (included in noncurrent liabilities)	$	(26,827	)	$	(27,624	)

⁽¹⁾ Contributions and benefits paid are each net of $3,518 thousand and $3,379 thousand of plan participant contributions, and $330 thousand and $344 thousand of Medicare Part D subsidy receipts for 2015 and 2014, respectively.

Schedule of Accumulated Other Comprehensive Income (Loss)

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

	2015			2014
Net (gain) loss	$	(1,654	)	$	759
Prior service cost	130			145
Subtotal	(1,524		)	904
Less amount recognized in regulatory assets	1,524			(904		)
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):

	2015			2014			2013
Service cost	$	1,235		$	1,011		$	1,315
Interest cost	2,678			2,841			2,633
Expected return on plan assets	(2,680		)	(2,595		)	(2,328		)
Amortization of net loss	—			—			98
Amortization of prior service cost	15			183			(229		)
Net periodic postretirement benefit cost	$	1,248		$	1,440		$	1,489

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one percentage point change in the assumed health care cost trend rate would have the following effects at December 31, 2015 (in thousands of dollars):

	One-Percentage-Point
	Increase		Decrease
Effect on total of cost components	$	407	$	(297	)
Effect on accumulated postretirement benefit obligation	3,719		(2,838		)

Pension Plan

Defined Benefit Plan Disclosure

Schedule of Allocation of Plan Assets

Pension Asset Allocation Policy:The target allocation and actual allocations at December 31, 2015 for the pension asset portfolio by asset class is set forth below:

Asset Class	Target Allocation		Actual Allocation December 31, 2015
Debt securities	24	%	25	%
Equity securities	54	%	55	%
Real estate	6	%	7	%
Other plan assets	16	%	13	%
Total	100	%	100	%

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). If the inputs used to measure the securities fall within different levels of the hierarchy, the

categorization is based on the lowest level input (Level 3 being the lowest) that is significant to the fair value measurement of the security.

	Level 1		Level 2		Level 3		Total
Assets at December 31, 2015
Pension plan assets:
Cash and cash equivalents	$	10,519	$	—	$	—	$	10,519
Short-term bonds	11,023		—		—		11,023
Intermediate bonds	11,499		92,742		—		104,241
Long-term bonds	—		21,747		—		21,747
Equity Securities: Large-Cap	73,489		—		—		73,489
Equity Securities: Mid-Cap	64,397		—		—		64,397
Equity Securities: Small-Cap	47,777		—		—		47,777
Equity Securities: Micro-Cap	22,186		—		—		22,186
Equity Securities: International	7,698		59,787		—		67,485
Equity Securities: Emerging Markets	9,679		23,167		—		32,846
Real estate	—		—		39,035		39,035
Private market investments	—		—		37,316		37,316
Commodities funds	—		27,555		—		27,555
Total pension assets	$	258,267	$	224,998	$	76,351	$	559,616
Postretirement plan assets(1)	$	16	$	35,550	$	—	$	35,566

Assets at December 31, 2014
Pension plan assets:
Cash and cash equivalents	$	19,190	$	—	$	—	$	19,190
Short-term bonds	—		10,991		—		10,991
Intermediate bonds	—		101,867		—		101,867
Long-term bonds	—		21,615		—		21,615
Equity Securities: Large-Cap	66,151		—		—		66,151
Equity Securities: Mid-Cap	68,974		—		—		68,974
Equity Securities: Small-Cap	50,972		—		—		50,972
Equity Securities: Micro-Cap	22,962		—		—		22,962
Equity Securities: International	6,555		57,705		—		64,260
Equity Securities: Emerging Markets	8,629		22,915		—		31,544
Real estate	—		—		33,996		33,996
Private market investments	—		—		37,118		37,118
Commodities funds	—		30,079		—		30,079
Total pension assets	$	243,433	$	245,172	$	71,114	$	559,719
Postretirement plan assets(1)	$	11	$	38,364	$	—	$	38,375

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

Reconcilation of Level 3 Assets

The following table presents a reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3) (in thousands of dollars):

	Private Equity			Real Estate		Total
Beginning balance - January 1, 2014	$	33,709		$	28,019	$	61,728
Realized gains	1,430			866		2,296
Unrealized (losses) gains	(545		)	1,305		760
Purchases	2,434			3,806		6,240
Settlements	90			—		90
Ending balance - December 31, 2014	37,118			33,996		71,114
Realized gains	1,897			923		2,820
Unrealized (losses) gains	(3,152		)	3,193		41
Purchases	2,255			923		3,178
Sales	(802		)	—		(802		)
Ending balance - December 31, 2015	$	37,316		$	39,035	$	76,351