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BENEFIT PLANS: Benefit Plans Level 3 (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020, 2019, and 2018 (in thousands of dollars). Items in parentheses indicate reductions to AOCI.


	Year Ended December 31,
	2020		2019		2018
Defined benefit pension items
Balance at beginning of period	$	(36,284)	$	(22,844)	$	(30,964)
Other comprehensive income before reclassifications	(10,062)		(15,392)		5,234
Amounts reclassified out of AOCI to net income	2,988		1,952		2,886
Net current-period other comprehensive income	(7,074)		(13,440)		8,120
Balance at end of period	$	(43,358)	$	(36,284)	$	(22,844)

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, 2020 and 2019 (in thousands of dollars):


	December 31, 2020								December 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds and commercial paper
IDACORP(1)	$	56,048	$	—	$	—	$	56,048	$	64,173	$	—	$	—	$	64,173
Idaho Power	40,038		—		—		40,038		26,510		—		—		26,510
Derivatives	1,995		—		—		1,995		392		13		—		405
Equity securities	50,733		—		—		50,733		42,738		—		—		42,738
Liabilities:
Derivatives	$	134	$	10	$	—	$	144	$	814	$	32	$	—	$	846

(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
	2020		2019		2020		2019		2020		2019
Discount rate	2.80	%	3.60	%	2.70	%	3.65	%	2.70	%	3.60	%
Rate of compensation increase(1)	4.43	%	4.37	%	4.75	%	4.75	%	—		—
Medical trend rate	—		—		—		—		6.8	%	6.7	%
Dental trend rate	—		—		—		—		4.0	%	4.0	%
Measurement date	12/31/2020		12/31/2019		12/31/2020		12/31/2019		12/31/2020		12/31/2019

(1) The 2020 rate of compensation increase assumption for the pension plan includes an inflation component of 2.40% plus a 2.03% 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
	2020		2019		2018		2020		2019		2018		2020		2019		2018
Discount rate	3.60	%	4.55	%	3.95	%	3.65	%	4.60	%	3.95	%	3.60	%	4.60	%	3.95	%
Expected long-term rate of return on assets	7.40	%	7.50	%	7.50	%	—		—		—		6.50	%	6.75	%	6.75	%
Rate of compensation increase	4.43	%	4.37	%	4.25	%	4.75	%	4.75	%	4.75	%	—		—	%	—	%
Medical trend rate	—		—		—		—		—		—		6.8	%	6.7	%	6.3	%
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
	2020		2019		2020		2019

Change in projected benefit obligation:
Benefit obligation at January 1	$	1,134,752	$	951,857	$	122,443	$	102,318
Service cost	42,987		34,061		213		(181)
Interest cost	40,013		42,312		4,350		4,575
Actuarial loss	163,610		147,784		13,420		17,888
Plan amendment	—		—		130		2,839
Benefits paid	(43,967)		(41,262)		(5,765)		(4,996)
Projected benefit obligation at December 31	1,337,395		1,134,752		134,791		122,443
Change in plan assets:
Fair value at January 1	763,119		650,604		—		—
Actual return on plan assets	112,451		113,777		—		—
Employer contributions	40,000		40,000		—		—
Benefits paid	(43,967)		(41,262)		—		—
Fair value at December 31	871,603		763,119		—		—
Funded status at end of year	$	(465,792)	$	(371,633)	$	(134,791)	$	(122,443)

Amounts recognized in the balance sheet consist of:
Other current liabilities	$	—	$	—	$	(6,154)	$	(5,911)
Noncurrent liabilities	(465,792)		(371,633)		(128,637)		(116,532)
Net amount recognized	$	(465,792)	$	(371,633)	$	(134,791)	$	(122,443)

Amounts recognized in accumulated other comprehensive income consist of:
Net loss	$	437,859	$	347,785	$	55,537	$	45,851
Prior service cost	49		56		2,983		3,143
Subtotal	437,908		347,841		58,520		48,994
Less amount recorded as regulatory asset(1)	(437,908)		(347,841)		—		—
Net amount recognized in accumulated other comprehensive income	$	—	$	—	$	58,520	$	48,994
Accumulated benefit obligation	$	1,115,923	$	958,586	$	119,517	$	109,966

(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
	2020		2019		2018		2020		2019		2018
Service cost	$	42,987	$	34,061	$	37,836	$	213	$	(181)	$	(316)
Interest cost	40,013		42,312		38,833		4,350		4,575		4,248
Expected return on assets	(56,239)		(48,623)		(52,302)		—		—		—
Amortization of net loss	17,325		13,564		13,558		3,734		2,533		3,788
Amortization of prior service cost	6		6		6		290		96		98
Net periodic pension cost	44,092		41,320		37,931		8,587		7,023		7,818
Regulatory deferral of net periodic benefit cost(1)	(42,042)		(39,379)		(36,153)		—		—		—
Previously deferred pension cost recognized(1)	17,154		17,154		17,154		—		—		—
Net periodic benefit cost recognized for financial reporting(1)(2)	$	19,204	$	19,095	$	18,932	$	8,587	$	7,023	$	7,818

(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 $15.9 million, $15.1 million, and $15.2 million respectively, was recognized in "Other operations and maintenance" and $11.9 million, and $11.0 million, and $11.6 million respectively, was recognized in "Other (income) expense, net" on the consolidated statements of income of the companies for the twelve months ended December 31, 2020, 2019, and 2018.

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
	2020		2019		2018		2020		2019		2018
Actuarial (loss) gain during the year	$	(107,399)	$	(82,631)	$	(15,226)	$	(13,420)	$	(17,888)	$	7,049
Plan amendment service cost	—		—		—		(130)		(2,839)		—
Reclassification adjustments for:
Amortization of net loss	17,325		13,564		13,558		3,734		2,533		3,788
Amortization of prior service cost	6		6		6		290		96		98
Adjustment for deferred tax effects	23,184		17,776		428		2,452		4,658		(2,815)
Adjustment due to the effects of regulation	66,884		51,285		1,234		—		—		—
Other comprehensive (loss) income recognized related to pension benefit plans	$	—	$	—	$	—	$	(7,074)	$	(13,440)	$	8,120

Schedule of Expected Benefit Payments

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


	2021		2022		2023		2024		2025		2026-2030
Pension Plan	$	42,701	$	44,558	$	46,596	$	48,616	$	50,521	$	282,431
SMSP	6,154		6,197		6,349		6,491		6,489		33,339

Schedule of Allocation of Plan Assets

Pension Asset Allocation Policy: The target allocation and actual allocations at December 31, 2020, for the pension asset portfolio by asset class is set forth below:


Asset Class	Target Allocation		Actual Allocation December 31, 2020
Debt securities	24	%	23	%
Equity securities	59	%	64	%
Real estate	9	%	6	%
Other plan assets	8	%	7	%
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):


	2020		2019		2018
Actuarial loss during the year	$	(6,515)	$	(249)	$	(1,109)

Reclassification adjustments for:

Immediate recognition of loss from temporary deviation(1)	—		—		4,216
Reclassification adjustments for amortization of prior service cost	47		48		47
Adjustment for deferred tax effects	1,665		52		270
Adjustment due to the effects of regulation	4,803		149		(3,424)
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):


	2020		2019
Change in accumulated benefit obligation:
Benefit obligation at January 1	$	71,029	$	66,453
Service cost	1,029		853
Interest cost	2,493		2,989
Actuarial loss (gain)	9,359		5,298
Benefits paid(1)	(2,958)		(4,564)

Benefit obligation at December 31	80,952		71,029
Change in plan assets:
Fair value of plan assets at January 1	39,625		33,391
Actual return (loss) on plan assets	5,248		7,269
Employer contributions(1)	(604)		3,529
Benefits paid(1)	(2,958)		(4,564)
Fair value of plan assets at December 31	41,311		39,625
Funded status at end of year (included in noncurrent liabilities)	$	(39,641)	$	(31,404)

(1) Contributions and benefits paid are each net of $3.4 million and $3.3 million of plan participant contributions for 2020 and 2019, respectively.

Schedule of Accumulated Other Comprehensive Income (Loss)

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


	2020		2019
Net loss	$	6,434	$	(81)
Prior service cost	127		174

Subtotal	6,561		93
Less amount recognized in regulatory assets	(6,561)		(93)

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):


	2020		2019		2018
Service cost	$	1,029	$	853	$	1,051
Interest cost	2,493		2,989		2,643
Expected return on plan assets	(2,404)		(2,220)		(2,467)
Immediate recognition of loss from temporary deviation(1)	—		—		4,216

Amortization of prior service cost	47		48		47
Net periodic postretirement benefit cost	$	1,165	$	1,670	$	5,490

Schedule of Expected Benefit Payments

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


	2021		2022		2023		2024		2025		2026-2029
Expected benefit payments	$	5,363	$	5,245	$	5,056	$	4,843	$	4,668	$	20,211

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, 2020
Cash and cash equivalents	$	25,008	$	—	$	—	$	25,008

Intermediate bonds	34,455		163,000		—		197,455

Equity Securities: Large-Cap	79,259		—		—		79,259
Equity Securities: Mid-Cap	104,089		—		—		104,089
Equity Securities: Small-Cap	82,069		—		—		82,069
Equity Securities: Micro-Cap	44,715		—		—		44,715
Equity Securities: Global and International	69,687		—		—		69,687
Equity Securities: Emerging Markets	10,574		—		—		10,574
Plan assets measured at NAV (not subject to hierarchy disclosure)
Commingled Fund: Equity Securities: Global and International							116,223
Commingled Fund: Equity Securities: Emerging Markets							50,019

Real estate							54,630
Private market investments							37,875
Total	$	449,856	$	163,000	$	—	$	871,603
Postretirement plan assets(1)	$	1,333	$	39,978	$	—	$	41,311


	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

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

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