Document and Entity Information
Document and Entity Information - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | BERKSHIRE HATHAWAY ENERGY CO | |
Entity Central Index Key | 1,081,316 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 77,391,144 | |
Entity Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 1,132 | $ 617 |
Trade receivables, net | 1,960 | 1,837 |
Income taxes receivable | 87 | 1,156 |
Inventories | 835 | 826 |
Mortgage loans held for sale | 586 | 286 |
Other current assets | 1,099 | 1,221 |
Total current assets | 5,699 | 5,943 |
Property, plant and equipment, net | 59,900 | 59,248 |
Goodwill | 9,250 | 9,343 |
Regulatory assets | 4,041 | 4,000 |
Investments and restricted cash and investments | 3,296 | 2,803 |
Other assets | 1,170 | 967 |
Total assets | 83,356 | 82,304 |
Current liabilities: | ||
Accounts payable | 1,697 | 1,991 |
Accrued interest | 479 | 454 |
Accrued property, income and other taxes | 473 | 366 |
Accrued employee expenses | 340 | 255 |
Short-term debt | 1,025 | 1,445 |
Current portion of long-term debt | 1,557 | 1,232 |
Other current liabilities | 1,546 | 1,369 |
Total current liabilities | 7,117 | 7,112 |
Regulatory liabilities | 2,685 | 2,669 |
BHE senior debt | 7,860 | 7,860 |
BHE junior subordinated debentures | 3,194 | 3,794 |
Subsidiary debt | 25,911 | 25,763 |
Deferred income taxes | 12,060 | 11,802 |
Other long-term liabilities | 2,791 | 2,731 |
Total liabilities | $ 61,618 | $ 61,731 |
Commitments and contingencies (Note 13) | ||
BHE shareholders' equity: | ||
Common stock - 115 shares authorized, no par value, 77 shares issued and outstanding | $ 0 | $ 0 |
Additional paid-in capital | 6,420 | 6,423 |
Retained earnings | 15,563 | 14,513 |
Accumulated other comprehensive loss, net | (385) | (494) |
Total BHE shareholders' equity | 21,598 | 20,442 |
Noncontrolling interests | 140 | 131 |
Total equity | 21,738 | 20,573 |
Total liabilities and equity | $ 83,356 | $ 82,304 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
BHE shareholders' equity: | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 115 | 115 |
Common stock, shares issued | 77 | 77 |
Common stock, shares outstanding | 77 | 77 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating revenue: | ||||
Energy | $ 3,690 | $ 3,486 | $ 7,463 | $ 7,377 |
Real estate | 758 | 617 | 1,206 | 975 |
Total operating revenue | 4,448 | 4,103 | 8,669 | 8,352 |
Energy: | ||||
Cost of sales | 1,229 | 1,286 | 2,583 | 2,918 |
Operating expense | 935 | 857 | 1,841 | 1,679 |
Depreciation and amortization | 604 | 494 | 1,185 | 969 |
Real estate | 673 | 566 | 1,123 | 936 |
Total operating costs and expenses | 3,441 | 3,203 | 6,732 | 6,502 |
Operating income | 1,007 | 900 | 1,937 | 1,850 |
Other income (expense): | ||||
Interest expense | (476) | (425) | (948) | (843) |
Capitalized interest | 22 | 22 | 51 | 51 |
Allowance for equity funds | 30 | 25 | 61 | 52 |
Interest and dividend income | 26 | 9 | 52 | 18 |
Other, net | 10 | 16 | 36 | 23 |
Total other income (expense) | (388) | (353) | (748) | (699) |
Income before income tax expense and equity income | 619 | 547 | 1,189 | 1,151 |
Income tax expense | 82 | 153 | 205 | 265 |
Equity income | 30 | 31 | 56 | 46 |
Net income | 567 | 425 | 1,040 | 932 |
Net income attributable to noncontrolling interests | 9 | 8 | 13 | 12 |
Net income attributable to BHE shareholders | $ 558 | $ 417 | $ 1,027 | $ 920 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 567 | $ 425 | $ 1,040 | $ 932 |
Other comprehensive income, net of tax: | ||||
Unrecognized amounts on retirement benefits, net of tax of $(11), $(1), $(3) and $- | (28) | (3) | (6) | 4 |
Foreign currency translation adjustment | 263 | 102 | (161) | 131 |
Unrealized gains (losses) on available-for-sale securities, net of tax of $77, $(37), $190 and $79 | 116 | (56) | 282 | 117 |
Unrealized (losses) gains on cash flow hedges, net of tax of $(4), $4, $(3) and $13 | (7) | 6 | (6) | 19 |
Total other comprehensive income, net of tax | 344 | 49 | 109 | 271 |
Comprehensive income | 911 | 474 | 1,149 | 1,203 |
Comprehensive income attributable to noncontrolling interests | 9 | 8 | 13 | 12 |
Comprehensive income attributable to BHE shareholders | $ 902 | $ 466 | $ 1,136 | $ 1,191 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Unrecognized amounts on retirement benefits, tax | $ (11) | $ (1) | $ (3) | $ 0 |
Unrealized gains (losses) on available-for-sale securities, tax | 77 | (37) | 190 | 79 |
Unrealized (losses) gains on cash flow hedges, tax | $ (4) | $ 4 | $ (3) | $ 13 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income, Net [Member] | Noncontrolling Interest [Member] |
Balance (shares) at Dec. 31, 2013 | 77 | |||||
Balance at Dec. 31, 2013 | $ 18,816 | $ 0 | $ 6,390 | $ 12,418 | $ (97) | $ 105 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 928 | 0 | 0 | 920 | 0 | 8 |
Other comprehensive income (loss) | 271 | 0 | 0 | 0 | 271 | 0 |
Distributions | (11) | 0 | 0 | 0 | 0 | (11) |
Other equity transactions | 43 | $ 0 | 22 | 0 | 0 | 21 |
Balance (shares) at Jun. 30, 2014 | 77 | |||||
Balance at Jun. 30, 2014 | $ 20,047 | $ 0 | 6,412 | 13,338 | 174 | 123 |
Balance (shares) at Dec. 31, 2014 | 77 | 77 | ||||
Balance at Dec. 31, 2014 | $ 20,573 | $ 0 | 6,423 | 14,513 | (494) | 131 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 1,035 | 0 | 0 | 1,027 | 0 | 8 |
Other comprehensive income (loss) | 109 | 0 | 0 | 0 | 109 | 0 |
Distributions | (10) | 0 | 0 | 0 | 0 | (10) |
Adoption of ASC 853 | 67 | 0 | 0 | 56 | 0 | 11 |
Common stock purchases | $ (36) | $ 0 | (3) | (33) | 0 | 0 |
Balance (shares) at Jun. 30, 2015 | 77 | 77 | ||||
Balance at Jun. 30, 2015 | $ 21,738 | $ 0 | $ 6,420 | $ 15,563 | $ (385) | $ 140 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 1,040 | $ 932 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 1,197 | 984 |
Allowance for equity funds | (61) | (52) |
Equity income, net of distributions | (20) | (32) |
Changes in regulatory assets and liabilities | 243 | (58) |
Deferred income taxes and amortization of investment tax credits | 390 | 579 |
Other, net | 13 | 62 |
Changes in other operating assets and liabilities, net of effects from acquisitions: | ||
Trade receivables and other assets | (418) | (84) |
Derivative collateral, net | 5 | (36) |
Pension and other postretirement benefit plans | (7) | (19) |
Accrued property, income and other taxes | 1,199 | (151) |
Accounts payable and other liabilities | (48) | 57 |
Net cash flows from operating activities | 3,533 | 2,182 |
Cash flows from investing activities: | ||
Capital expenditures | (2,624) | (2,385) |
Acquisitions, net of cash acquired | (59) | (246) |
Decrease in restricted cash and investments | 20 | 201 |
Purchases of available-for-sale securities | (102) | (108) |
Proceeds from sales of available-for-sale securities | 95 | 82 |
Equity method investments | (18) | (22) |
Other, net | 43 | (1) |
Net cash flows from investing activities | (2,645) | (2,479) |
Cash flows from financing activities: | ||
Repayments of BHE senior debt and junior subordinated debentures | (600) | (550) |
Common stock purchases | (36) | 0 |
Proceeds from subsidiary debt | 1,238 | 1,272 |
Repayments of subsidiary debt | (527) | (462) |
Net (repayments of) proceeds from short-term debt | (405) | 389 |
Other, net | (43) | (43) |
Net cash flows from financing activities | (373) | 606 |
Net change in cash and cash equivalents | 515 | 309 |
Cash and cash equivalents at beginning of period | 617 | 1,175 |
Cash and cash equivalents at end of period | $ 1,132 | $ 1,484 |
General
General | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ( 1 ) General Berkshire Hathaway Energy Company (" BHE ") is a holding company that owns subsidiaries principally engaged in energy businesses (collectively with its subsidiaries, the "Company"). BHE is a consolidated subsidiary of Berkshire Hathaway Inc. ("Berkshire Hathaway"). The Company's operations are organized and managed as eight business segments: PacifiCorp, MidAmerican Funding, LLC ("MidAmerican Funding") (which primarily consists of MidAmerican Energy Company ("MidAmerican Energy")), NV Energy, Inc. ("NV Energy") (which primarily consists of Nevada Power Company ("Nevada Power") and Sierra Pacific Power Company ("Sierra Pacific")), Northern Powergrid Holdings Company ("Northern Powergrid") (which primarily consists of Northern Powergrid (Northeast) Limited and Northern Powergrid (Yorkshire) plc), BHE Pipeline Group (which consists of Northern Natural Gas Company ("Northern Natural Gas") and Kern River Gas Transmission Company ("Kern River")), BHE Transmission (which consists of BHE AltaLink Ltd. ("AltaLink") (which primarily consists of AltaLink, L.P. ("ALP")) and BHE U.S. Transmission, LLC), BHE Renewables, and HomeServices of America, Inc. (collectively with its subsidiaries, "HomeServices"). The Company, through these businesses, owns four utility companies in the United States serving customers in 11 states, two electricity distribution companies in Great Britain, two interstate natural gas pipeline companies in the United States, an electric transmission business in Canada, interests in electric transmission businesses in the United States, a renewable energy business primarily selling power generated from solar, wind, geothermal and hydro sources under long-term contracts, the second largest residential real estate brokerage firm in the United States and one of the largest residential real estate brokerage franchise networks in the United States. The unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the United States Securities and Exchange Commission's rules and regulations for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for annual financial statements. Management believes the unaudited Consolidated Financial Statements contain all adjustments (consisting only of normal recurring adjustments) considered necessary for the fair presentation of the unaudited Consolidated Financial Statements as of June 30, 2015 and for the three- and six-month periods ended June 30, 2015 and 2014 . The results of operations for the three- and six-month periods ended June 30, 2015 are not necessarily indicative of the results to be expected for the full year. The preparation of the unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenue and expenses during the period. Actual results may differ from the estimates used in preparing the unaudited Consolidated Financial Statements. Note 2 of Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 describes the most significant accounting policies used in the preparation of the unaudited Consolidated Financial Statements. There have been no significant changes in the Company's assumptions regarding significant accounting estimates and policies during the six-month period ended June 30, 2015 . |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Changes [Text Block] | ( 2 ) New Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-03, which amends FASB Accounting Standards Codification ("ASC") Subtopic 835-30, "Interest - Imputation of Interest." The amendments in this guidance require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability instead of as an asset. This guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. This guidance must be adopted retrospectively, wherein the balance sheet of each period presented should be adjusted to reflect the new guidance. The Company is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements. In May 2014, the FASB issued ASU No. 2014-09, which creates FASB ASC Topic 606, "Revenue from Contracts with Customers" and supersedes ASC Topic 605, "Revenue Recognition." The guidance replaces industry-specific guidance and establishes a single five-step model to identify and recognize revenue. The core principle of the guidance is that an entity should recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires the entity to disclose further quantitative and qualitative information regarding the nature and amount of revenues arising from contracts with customers, as well as other information about the significant judgments and estimates used in recognizing revenues from contracts with customers. In July 2015, the FASB decided to defer the effective date one year to interim and annual reporting periods beginning after December 15, 2017. This guidance may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. The Company is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements. In January 2014, the FASB issued ASU No. 2014-05, which amends FASB ASC Topic 853, "Service Concession Arrangements" ("ASC 853"). The amendments in this guidance require an entity to not account for service concession arrangements as a lease and should also not recognize them as property, plant and equipment. This guidance is effective for interim and annual reporting periods beginning after December 15, 2014. The Company adopted this guidance effective January 1, 2015 under a modified retrospective method where the cumulative effect is recognized at the date of initial application. The adoption resulted in the establishment of a financial asset with a related recognition of interest income, the elimination of a portion of previously recognized property, plant and equipment, the elimination of recognizing guaranteed water and energy delivery fees in operating revenue and increases to retained earnings attributable to the Company of $56 million and noncontrolling interests of $11 million . |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | ( 3 ) Business Acquisitions AltaLink Transaction Description On December 1, 2014, BHE completed its acquisition of AltaLink and AltaLink became an indirect wholly owned subsidiary of BHE . Under the terms of the Share Purchase Agreement, dated May 1, 2014, between BHE and SNC-Lavalin Group Inc. ("SNC-Lavalin"), BHE paid C$3.1 billion (US $2.7 billion ) in cash to SNC-Lavalin for 100% of the equity interests of AltaLink. BHE funded the total purchase price with $1.5 billion of junior subordinated debentures issued and sold to subsidiaries of Berkshire Hathaway, $1.0 billion borrowed under its commercial paper program and cash on hand. ALP is a regulated electric transmission business, headquartered in Calgary, Alberta. ALP owns 7,800 miles of transmission lines and 300 substations in Alberta and operates under a cost-of-service regulatory model, including a forward test year, overseen by the Alberta Utilities Commission ("AUC"). Allocation of Purchase Price The operations of ALP are subject to the rate-setting authority of the AUC and are accounted for pursuant to GAAP, including the authoritative guidance for regulated operations. The rate-setting and cost recovery provisions establish rates on a cost-of-service basis designed to allow ALP an opportunity to recover its costs of providing service and a return on its investment in rate base. Except for certain assets not currently in rates, the fair value of ALP's assets acquired and liabilities assumed subject to these rate-setting provisions are assumed to approximate their carrying values and, therefore, no fair value adjustments have been reflected related to these amounts. The fair value of AltaLink's assets acquired and liabilities assumed not subject to the rate-setting provisions discussed above was determined using an income approach. This approach is based on significant estimates and assumptions, including Level 3 inputs, which are judgmental in nature. The estimates and assumptions include the projected timing and amount of future cash flows, discount rates reflecting the risk inherent in the future cash flows and future market prices. The fair value of certain contracts, deferred tax amounts and certain contingencies, among other items, are provisional and are subject to revision for up to 12 months following the acquisition date until the related valuations are completed. These items may be adjusted through regulatory assets or liabilities, to the extent recoverable in rates, or goodwill provided additional information is obtained about the facts and circumstances that existed as of the acquisition date. Such information includes, but is not limited to, further information regarding the fair value of the contracts and the resolution of contingency related items. AltaLink's non-regulated assets acquired and liabilities assumed consist principally of AltaLink Investments, L.P.'s and AltaLink Holdings, L.P.'s senior bonds and debentures. The fair value of these liabilities was determined based on quoted market prices. The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date (in millions): Fair Value Current assets, including cash and cash equivalents of $15 $ 174 Property, plant and equipment 5,610 Goodwill 1,731 Other long-term assets 128 Total assets 7,643 Current liabilities, including current portion of long-term debt of $79 866 Subsidiary debt, less current portion 3,772 Deferred income taxes 95 Other long-term liabilities 182 Total liabilities 4,915 Net assets acquired $ 2,728 Goodwill The excess of the purchase price paid over the estimated fair values of the identifiable assets acquired and liabilities assumed totaled $1.7 billion and is reflected as goodwill in the BHE Transmission reportable segment. The goodwill reflects the value for the opportunities to invest in Alberta's electric transmission infrastructure and to develop solutions to meet the long-term energy needs of Alberta. Goodwill is not amortized, but rather is reviewed annually for impairment or more frequently if indicators of impairment exist. None of the goodwill recognized is deductible for income tax purposes, and no deferred income taxes have been recorded related to the goodwill. Pro Forma Financial Information The following unaudited pro forma financial information reflects the consolidated results of operations of BHE, non-recurring transaction costs incurred by both BHE and AltaLink during 2014 and the amortization of the purchase price adjustments each assuming the acquisition had taken place on January 1, 2013 (in millions): Six-Month Period Ended June 30, 2014 Operating revenue $ 8,632 Net income attributable to BHE shareholders $ 944 The unaudited pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of the consolidated results of operations that would have been achieved or the future consolidated results of operations of BHE. The information is provisional in nature and subject to change based on final purchase accounting adjustments. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | ( 4 ) Property, Plant and Equipment, Net Property, plant and equipment, net consists of the following (in millions): As of Depreciable June 30, December 31, Life 2015 2014 Regulated assets: Utility generation, distribution and transmission system 5-80 years $ 66,158 $ 64,645 Interstate pipeline assets 3-80 years 6,711 6,660 72,869 71,305 Accumulated depreciation and amortization (22,259 ) (21,447 ) Regulated assets, net 50,610 49,858 Nonregulated assets: Independent power plants 5-30 years 4,741 4,362 Other assets 3-30 years 824 673 5,565 5,035 Accumulated depreciation and amortization (688 ) (839 ) Nonregulated assets, net 4,877 4,196 Net operating assets 55,487 54,054 Construction work-in-progress 4,413 5,194 Property, plant and equipment, net $ 59,900 $ 59,248 Construction work-in-progress includes $4.2 billion and $4.3 billion as of June 30, 2015 and December 31, 2014 , respectively, related to the construction of regulated assets. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2015 | |
Regulated Matters [Abstract] | |
Schedule of Regulatory Assets and Liabilities [Text Block] | ( 5 ) Regulatory Matters Utah Mine Disposition Due to quality issues with the coal reserves at PacifiCorp's Deer Creek mine in Utah and rising costs at PacifiCorp's wholly owned subsidiary, Energy West Mining Company, PacifiCorp believes the Deer Creek coal reserves are no longer able to be economically mined. As a result, in December 2014, PacifiCorp filed applications with the Utah Public Service Commission ("UPSC"), the Oregon Public Utility Commission ("OPUC"), the Wyoming Public Service Commission ("WPSC") and the Idaho Public Utilities Commission ("IPUC") seeking certain approvals, prudence determinations and accounting orders to close its Deer Creek mining operations, sell certain Utah mining assets, enter into a replacement coal supply agreement, amend an existing coal supply agreement, withdraw from the United Mine Workers of America ("UMWA") 1974 Pension Plan and settle PacifiCorp's other postretirement benefit obligation for UMWA participants (collectively, the "Utah Mine Disposition"). PacifiCorp also filed an advice letter with the California Public Utilities Commission. In April 2015, PacifiCorp filed all-party settlement stipulations with the UPSC and the WPSC finding that the decision to enter into the Utah Mine Disposition transaction is prudent and in the public interest. The UPSC approved the stipulation in April 2015 and the WPSC approved the stipulation in May 2015. In May 2015, the OPUC issued its final order concluding that the Utah Mine Disposition transaction produces net benefits for customers and is in the public interest. The IPUC also issued an order in May 2015, approving the Utah Mine Disposition and ruling that the decision to enter into the transaction is prudent and in the public interest. Accordingly, in June 2015, PacifiCorp sold the specified Utah mining assets and the replacement and amended coal supply agreements became effective. Refer to Note 13 for discussion of the contractual obligations related to the replacement coal supply agreement. Refer to Note 9 for discussion of the settlement of the other postretirement benefit obligation for UMWA participants. The Deer Creek mine is currently idled and closure activities have begun. |
Investments and Restricted Cash
Investments and Restricted Cash and Investments | 6 Months Ended |
Jun. 30, 2015 | |
Investments and Restricted Cash and Investments [Abstract] | |
Investments and Restricted Cash and Investments [Text Block] | ( 6 ) Investments and Restricted Cash and Investments Investments and restricted cash and investments consists of the following (in millions): As of June 30, December 31, 2015 2014 Investments: BYD Company Limited common stock $ 1,351 $ 881 Rabbi trusts 382 386 Other 149 126 Total investments 1,882 1,393 Equity method investments: Electric Transmission Texas, LLC 557 515 Bridger Coal Company 186 192 Other 164 161 Total equity method investments 907 868 Restricted cash and investments: Quad Cities Station nuclear decommissioning trust funds 426 424 Other 199 233 Total restricted cash and investments 625 657 Total investments and restricted cash and investments $ 3,414 $ 2,918 Reflected as: Current assets $ 118 $ 115 Noncurrent assets 3,296 2,803 Total investments and restricted cash and investments $ 3,414 $ 2,918 Investments BHE's investment in BYD Company Limited common stock is accounted for as an available-for-sale security with changes in fair value recognized in accumulated other comprehensive income (loss) ("AOCI"). As of June 30, 2015 and December 31, 2014 , the fair value of BHE's investment in BYD Company Limited common stock was $1.4 billion and $881 million , respectively, which resulted in a pre-tax unrealized gain of $1.1 billion and $649 million as of June 30, 2015 and December 31, 2014 , respectively. |
Recent Financing Transactions
Recent Financing Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | ( 7 ) Recent Financing Transactions Long-Term Debt In June 2015, BHE repaid at par value $600 million, plus accrued interest, of its junior subordinated debentures due December 2043. In June 2015, PacifiCorp issued $250 million of its 3.35% First Mortgage Bonds due July 2025. The net proceeds were used to fund capital expenditures and for general corporate purposes, including retirement of short-term debt. In June 2015, ALP issued C$350 million of its 4.09% Series 2015-1 Medium-Term Notes due June 2045. The net proceeds were used to repay short-term debt. In April 2015, Northern Powergrid (Yorkshire) plc issued ÂŁ150 million of its 2.50% Bonds due April 2025. The net proceeds were used for general corporate purposes, including the repayment of short-term debt. In March 2015, Solar Star Funding, LLC issued $325 million of its 3.95% Series B Senior Secured Notes. The principal of the notes amortizes beginning June 2016 with a final maturity in June 2035. The net proceeds were used to fund the repayment or reimbursement of amounts provided by BHE for the costs related to the development, construction and financing of a combined 579-megawatt solar project in California (the "Solar Star Projects"). In March 2015, AltaLink Investments, L.P. issued C$200 million of its 2.244% Series 15-1 Senior Bonds due March 2022. The net proceeds were used to repay short-term debt, provide equity to ALP and for general corporate purposes. Credit Facilities In March 2015, Topaz Solar Farms LLC amended its $345 million letter of credit facility reducing the amount available to $326 million and extending the maturity date to March 2025. As of June 30, 2015 , Topaz had $316 million of letters of credit issued under this facility. In March 2015, PacifiCorp obtained $191 million of letters of credit to support variable-rate tax-exempt bond obligations. These letters of credit expire through March 2017 and replace certain letters of credit previously issued under one of the credit facilities. Also, in March 2015, PacifiCorp arranged for the cancellation of $23 million of letters of credit previously issued under one of the credit facilities to support variable-rate tax-exempt bond obligations. As of June 30, 2015 , PacifiCorp had $428 million of fully available letters of credit issued under committed arrangements to support variable-rate tax-exempt bond obligations, of which $56 million were issued under credit facilities. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | ( 8 ) Income Taxes A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense is as follows: Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Federal statutory income tax rate 35 % 35 % 35 % 35 % Income tax credits (13 ) (6 ) (12 ) (11 ) State income tax, net of federal income tax benefit 1 2 1 2 Income tax effect of foreign income and credits (8 ) (3 ) (6 ) (3 ) Equity income 2 2 2 1 Other, net (4 ) (2 ) (3 ) (1 ) Effective income tax rate 13 % 28 % 17 % 23 % Income tax credits relate primarily to production tax credits from wind-powered generating facilities owned by MidAmerican Energy, PacifiCorp, Bishop Hill Energy II LLC and Jumbo Road Holdings, LLC. Federal renewable electricity production tax credits are earned as energy from qualifying wind-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. Berkshire Hathaway includes the Company in its United States federal income tax return. For the six-month periods ended June 30, 2015 and 2014 , the Company received net cash payments for income taxes from Berkshire Hathaway totaling $1.4 billion and $187 million , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ( 9 ) Employee Benefit Plans Domestic Operations Net periodic benefit cost for the domestic pension and other postretirement benefit plans included the following components (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Pension: Service cost $ 8 $ 9 $ 16 $ 17 Interest cost 31 33 61 66 Expected return on plan assets (43 ) (41 ) (85 ) (82 ) Net amortization 15 9 28 20 Net periodic benefit cost $ 11 $ 10 $ 20 $ 21 Other postretirement: Service cost $ 2 $ 4 $ 6 $ 7 Interest cost 9 12 16 23 Expected return on plan assets (11 ) (12 ) (23 ) (25 ) Net amortization (3 ) (1 ) (6 ) (2 ) Net periodic benefit cost $ (3 ) $ 3 $ (7 ) $ 3 Employer contributions to the domestic pension and other postretirement benefit plans are expected to be $34 million and $1 million , respectively, during 2015 . As of June 30, 2015 , $6 million and $- million of contributions had been made to the domestic pension and other postretirement benefit plans, respectively. Utah Mine Disposition and Labor Agreement In conjunction with the Utah Mine Disposition described in Note 5 , in December 2014, Energy West Mining Company reached a labor settlement with the UMWA covering union employees at PacifiCorp's Deer Creek mining operations. As a result of the labor settlement, the UMWA agreed to assume PacifiCorp's other postretirement benefit obligation associated with UMWA plan participants in exchange for PacifiCorp transferring $150 million to a fund managed by the UMWA. Transfer of the assets and settlement of this obligation occurred in May 2015 and resulted in a remeasurement of the other postretirement plan assets and benefit obligation. As a result of the remeasurement, PacifiCorp recognized a $9 million settlement loss, with the portion that is probable of recovery deferred as a regulatory asset. Foreign Operations Net periodic benefit cost for the United Kingdom pension plan included the following components (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Service cost $ 6 $ 6 $ 12 $ 12 Interest cost 20 24 40 48 Expected return on plan assets (29 ) (32 ) (58 ) (63 ) Net amortization 16 14 32 27 Net periodic benefit cost $ 13 $ 12 $ 26 $ 24 Employer contributions to the United Kingdom pension plan are expected to be ÂŁ49 million during 2015 . As of June 30, 2015 , ÂŁ25 million , or $39 million , of contributions had been made to the United Kingdom pension plan. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | ( 10 ) Asset Retirement Obligations In December 2014, the United States Environmental Protection Agency released its final rule regulating the management and disposal of coal combustion byproducts resulting from the operation of coal-fueled generating facilities, including requirements for the operation and closure of surface impoundment and ash landfill facilities. The final rule was published in the Federal Register in April 2015 and will be effective in October 2015. As of June 30, 2015 and December 31, 2014 , the Company's asset retirement obligations totaled $806 million and $687 million , respectively, and the change was substantially due to the impacts of the final rule. |
Risk Management and Hedging Act
Risk Management and Hedging Activities | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ( 11 ) Risk Management and Hedging Activities The Company is exposed to the impact of market fluctuations in commodity prices, interest rates and foreign currency exchange rates. The Company is principally exposed to electricity, natural gas, coal and fuel oil commodity price risk primarily through BHE's ownership of PacifiCorp, MidAmerican Energy, Nevada Power and Sierra Pacific (the "Utilities") as they have an obligation to serve retail customer load in their regulated service territories. MidAmerican Energy also provides nonregulated retail electricity and natural gas services in competitive markets, which creates contractual obligations to provide electric and natural gas services. The Utilities' load and generating facilities represent substantial underlying commodity positions. Exposures to commodity prices consist mainly of variations in the price of fuel required to generate electricity, wholesale electricity that is purchased and sold, and natural gas supply for retail customers. Commodity prices are subject to wide price swings as supply and demand are impacted by, among many other unpredictable items, weather, market liquidity, generating facility availability, customer usage, storage, and transmission and transportation constraints. Interest rate risk exists on variable-rate debt, future debt issuances and mortgage commitments. Additionally, the Company is exposed to foreign currency exchange rate risk from its business operations and investments in Great Britain and Canada. The Company does not engage in a material amount of proprietary trading activities. Each of the Company's business platforms has established a risk management process that is designed to identify, assess, monitor, report, manage and mitigate each of the various types of risk involved in its business. To mitigate a portion of its commodity price risk, the Company uses commodity derivative contracts, which may include forwards, futures, options, swaps and other agreements, to effectively secure future supply or sell future production generally at fixed prices. The Company manages its interest rate risk by limiting its exposure to variable interest rates primarily through the issuance of fixed-rate long-term debt and by monitoring market changes in interest rates. Additionally, the Company may from time to time enter into interest rate derivative contracts, such as interest rate swaps or locks, forward sale commitments, or mortgage interest rate lock commitments, to mitigate the Company's exposure to interest rate risk. The Company does not hedge all of its commodity price, interest rate and foreign currency exchange rate risks, thereby exposing the unhedged portion to changes in market prices. There have been no significant changes in the Company's accounting policies related to derivatives. Refer to Note 12 for additional information on derivative contracts. The following table, which reflects master netting arrangements and excludes contracts that have been designated as normal under the normal purchases or normal sales exception afforded by GAAP, summarizes the fair value of the Company's derivative contracts, on a gross basis, and reconciles those amounts to the amounts presented on a net basis on the Consolidated Balance Sheets (in millions): Other Other Other Current Other Current Long-term Assets Assets Liabilities Liabilities Total As of June 30, 2015 Not designated as hedging contracts: Commodity assets (1) $ 32 $ 72 $ 16 $ — $ 120 Commodity liabilities (1) (4 ) — (117 ) (165 ) (286 ) Interest rate assets 15 — — — 15 Interest rate liabilities — — (5 ) (3 ) (8 ) Total 43 72 (106 ) (168 ) (159 ) Designated as hedging contracts: Commodity assets 1 — 2 2 5 Commodity liabilities — — (24 ) (20 ) (44 ) Interest rate assets — — — — — Interest rate liabilities — — (2 ) — (2 ) Total 1 — (24 ) (18 ) (41 ) Total derivatives 44 72 (130 ) (186 ) (200 ) Cash collateral receivable — — 40 49 89 Total derivatives - net basis $ 44 $ 72 $ (90 ) $ (137 ) $ (111 ) As of December 31, 2014 Not designated as hedging contracts: Commodity assets (1) $ 47 $ 66 $ 21 $ 1 $ 135 Commodity liabilities (1) (11 ) — (146 ) (134 ) (291 ) Interest rate assets 4 — — — 4 Interest rate liabilities — — (2 ) (4 ) (6 ) Total 40 66 (127 ) (137 ) (158 ) Designated as hedging contracts: Commodity assets 1 — 5 2 8 Commodity liabilities — — (27 ) (17 ) (44 ) Interest rate assets — 1 — — 1 Interest rate liabilities — — (4 ) — (4 ) Total 1 1 (26 ) (15 ) (39 ) Total derivatives 41 67 (153 ) (152 ) (197 ) Cash collateral receivable — — 56 19 75 Total derivatives - net basis $ 41 $ 67 $ (97 ) $ (133 ) $ (122 ) (1) The Company's commodity derivatives not designated as hedging contracts are generally included in regulated rates, and as of June 30, 2015 and December 31, 2014 , a net regulatory asset of $233 million and $223 million , respectively, was recorded related to the net derivative liability of $166 million and $156 million , respectively. The difference between the net regulatory asset and the net derivative liability relates primarily to a power purchase agreement derivative at BHE Renewables. Not Designated as Hedging Contracts The following table reconciles the beginning and ending balances of the Company's net regulatory assets and summarizes the pre-tax gains and losses on commodity derivative contracts recognized in net regulatory assets, as well as amounts reclassified to earnings (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Beginning balance $ 255 $ 159 $ 223 $ 182 Changes in fair value recognized in net regulatory assets (3 ) (11 ) 57 (7 ) Net (losses) gains reclassified to operating revenue (2 ) (5 ) 7 (35 ) Net (losses) gains reclassified to cost of sales (17 ) (1 ) (54 ) 2 Ending balance $ 233 $ 142 $ 233 $ 142 Designated as Hedging Contracts The Company uses commodity derivative contracts accounted for as cash flow hedges to hedge electricity and natural gas commodity prices for delivery to nonregulated customers, spring operational sales, natural gas storage and other transactions. The following table reconciles the beginning and ending balances of the Company's accumulated other comprehensive (income) loss (pre-tax) and summarizes pre-tax gains and losses on commodity derivative contracts designated and qualifying as cash flow hedges recognized in other comprehensive income ("OCI"), as well as amounts reclassified to earnings (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Beginning balance $ 27 $ (12 ) $ 32 $ 12 Changes in fair value recognized in OCI 25 (18 ) 17 (77 ) Net gains reclassified to operating revenue 2 — 3 — Net (losses) gains reclassified to cost of sales (16 ) 5 (14 ) 40 Ending balance $ 38 $ (25 ) $ 38 $ (25 ) Certain derivative contracts, principally interest rate locks, have settled and the fair value at the date of settlement remains in AOCI and is recognized in earnings when the forecasted transactions impact earnings. Realized gains and losses on hedges and hedge ineffectiveness are recognized in income as operating revenue, cost of sales, operating expense or interest expense depending upon the nature of the item being hedged. For the three- and six-month periods ended June 30, 2015 and 2014 , hedge ineffectiveness was insignificant. As of June 30, 2015 , the Company had cash flow hedges with expiration dates extending through December 2019 and $22 million of pre-tax net unrealized losses are forecasted to be reclassified from AOCI into earnings over the next twelve months as contracts settle. Derivative Contract Volumes The following table summarizes the net notional amounts of outstanding derivative contracts with fixed price terms that comprise the mark-to-market values as of (in millions): Unit of June 30, December 31, Measure 2015 2014 Electricity purchases Megawatt hours 10 6 Natural gas purchases Decatherms 318 308 Fuel purchases Gallons 7 2 Interest rate swaps US$ 432 443 Mortgage sale commitments, net US$ (532 ) (264 ) Credit Risk The Utilities are exposed to counterparty credit risk associated with wholesale energy supply and marketing activities with other utilities, energy marketing companies, financial institutions and other market participants. Credit risk may be concentrated to the extent the Utilities' counterparties have similar economic, industry or other characteristics and due to direct or indirect relationships among the counterparties. Before entering into a transaction, the Utilities analyze the financial condition of each significant wholesale counterparty, establish limits on the amount of unsecured credit to be extended to each counterparty and evaluate the appropriateness of unsecured credit limits on an ongoing basis. To further mitigate wholesale counterparty credit risk, the Utilities enter into netting and collateral arrangements that may include margining and cross-product netting agreements and obtain third-party guarantees, letters of credit and cash deposits. If required, the Utilities exercise rights under these arrangements, including calling on the counterparty's credit support arrangement. Collateral and Contingent Features In accordance with industry practice, certain wholesale derivative contracts contain credit support provisions that in part base certain collateral requirements on credit ratings for senior unsecured debt as reported by one or more of the three recognized credit rating agencies. These derivative contracts may either specifically provide bilateral rights to demand cash or other security if credit exposures on a net basis exceed specified rating-dependent threshold levels ("credit-risk-related contingent features") or provide the right for counterparties to demand "adequate assurance," or in some cases terminate the contract, in the event of a material adverse change in creditworthiness. These rights can vary by contract and by counterparty. As of June 30, 2015 , the applicable credit ratings from the three recognized credit rating agencies were investment grade. The aggregate fair value of the Company's derivative contracts in liability positions with specific credit-risk-related contingent features totaled $256 million and $243 million as of June 30, 2015 and December 31, 2014 , respectively, for which the Company had posted collateral of $58 million and $28 million , respectively, in the form of cash deposits. If all credit-risk-related contingent features for derivative contracts in liability positions had been triggered as of June 30, 2015 and December 31, 2014 , the Company would have been required to post $186 million and $182 million , respectively, of additional collateral. The Company's collateral requirements could fluctuate considerably due to market price volatility, changes in credit ratings, changes in legislation or regulation, or other factors. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | ( 12 ) Fair Value Measurements The carrying value of the Company's cash, certain cash equivalents, receivables, payables, accrued liabilities and short-term borrowings approximates fair value because of the short-term maturity of these instruments. The Company has various financial assets and liabilities that are measured at fair value on the Consolidated Financial Statements using inputs from the three levels of the fair value hierarchy. A financial asset or liability classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows: • Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 — Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). • Level 3 — Unobservable inputs reflect the Company's judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. The Company develops these inputs based on the best information available, including its own data. The following table presents the Company's assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions): Input Levels for Fair Value Measurements Level 1 Level 2 Level 3 Other (1) Total As of June 30, 2015 Assets: Commodity derivatives $ — $ 38 $ 87 $ (24 ) $ 101 Interest rate derivatives — 8 7 — 15 Mortgage loans held for sale — 566 — — 566 Money market mutual funds (2) 877 — — — 877 Debt securities: United States government obligations 131 — — — 131 International government obligations — 3 — — 3 Corporate obligations — 40 — — 40 Municipal obligations — 2 — — 2 Agency, asset and mortgage-backed obligations — 3 — — 3 Auction rate securities — — 45 — 45 Equity securities: United States companies 239 — — — 239 International companies 1,357 — — — 1,357 Investment funds 160 — — — 160 $ 2,764 $ 660 $ 139 $ (24 ) $ 3,539 Liabilities: Commodity derivatives $ (12 ) $ (265 ) $ (53 ) $ 113 $ (217 ) Interest rate derivatives — (8 ) (2 ) — (10 ) $ (12 ) $ (273 ) $ (55 ) $ 113 $ (227 ) Input Levels for Fair Value Measurements Level 1 Level 2 Level 3 Other (1) Total As of December 31, 2014 Assets: Commodity derivatives $ 1 $ 48 $ 94 $ (40 ) $ 103 Interest rate derivatives — 5 — — 5 Mortgage loans held for sale — 279 — — 279 Money market mutual funds (2) 320 — — — 320 Debt securities: United States government obligations 136 — — — 136 International government obligations — 1 — — 1 Corporate obligations — 39 — — 39 Municipal obligations — 2 — — 2 Agency, asset and mortgage-backed obligations — 2 — — 2 Auction rate securities — — 45 — 45 Equity securities: United States companies 238 — — — 238 International companies 886 — — — 886 Investment funds 137 — — — 137 $ 1,718 $ 376 $ 139 $ (40 ) $ 2,193 Liabilities: Commodity derivatives $ (18 ) $ (274 ) $ (43 ) $ 115 $ (220 ) Interest rate derivatives — (10 ) — — (10 ) $ (18 ) $ (284 ) $ (43 ) $ 115 $ (230 ) (1) Represents netting under master netting arrangements and a net cash collateral receivable of $89 million and $75 million as of June 30, 2015 and December 31, 2014 , respectively. (2) Amounts are included in cash and cash equivalents; other current assets; and noncurrent investments and restricted cash and investments on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost. Derivative contracts are recorded on the Consolidated Balance Sheets as either assets or liabilities and are stated at estimated fair value unless they are designated as normal purchases or normal sales and qualify for the exception afforded by GAAP. When available, the fair value of derivative contracts is estimated using unadjusted quoted prices for identical contracts in the market in which the Company transacts. When quoted prices for identical contracts are not available, the Company uses forward price curves. Forward price curves represent the Company's estimates of the prices at which a buyer or seller could contract today for delivery or settlement at future dates. The Company bases its forward price curves upon market price quotations, when available, or internally developed and commercial models, with internal and external fundamental data inputs. Market price quotations are obtained from independent brokers, exchanges, direct communication with market participants and actual transactions executed by the Company. Market price quotations are generally readily obtainable for the applicable term of the Company's outstanding derivative contracts; therefore, the Company's forward price curves reflect observable market quotes. Market price quotations for certain electricity and natural gas trading hubs are not as readily obtainable due to the length of the contract. Given that limited market data exists for these contracts, as well as for those contracts that are not actively traded, the Company uses forward price curves derived from internal models based on perceived pricing relationships to major trading hubs that are based on unobservable inputs. The estimated fair value of these derivative contracts is a function of underlying forward commodity prices, interest rates, currency rates, related volatility, counterparty creditworthiness and duration of contracts. Refer to Note 11 for further discussion regarding the Company's risk management and hedging activities. The Company's mortgage loans held for sale are valued based on independent quoted market prices, where available, or the prices of other mortgage whole loans with similar characteristics. As necessary, these prices are adjusted for typical securitization activities, including servicing value, portfolio composition, market conditions and liquidity. The Company's investments in money market mutual funds and debt and equity securities are stated at fair value and are primarily accounted for as available-for-sale securities. When available, a readily observable quoted market price or net asset value of an identical security in an active market is used to record the fair value. In the absence of a quoted market price or net asset value of an identical security, the fair value is determined using pricing models or net asset values based on observable market inputs and quoted market prices of securities with similar characteristics. The fair value of the Company's investments in auction rate securities, where there is no current liquid market, is determined using pricing models based on available observable market data and the Company's judgment about the assumptions, including liquidity and nonperformance risks, which market participants would use when pricing the asset. The following table reconciles the beginning and ending balances of the Company's assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, Interest Auction Interest Auction Commodity Rate Rate Commodity Rate Rate Derivatives Derivatives Securities Derivatives Derivatives Securities 2015: Beginning balance $ 49 $ 8 $ 44 $ 51 $ — $ 45 Changes included in earnings 3 24 — 11 45 — Changes in fair value recognized in OCI (4 ) — 1 (3 ) — — Changes in fair value recognized in net regulatory assets (14 ) — — (17 ) — — Purchases 1 — — 1 — — Settlements (1 ) (27 ) — (9 ) (43 ) — Transfers from Level 2 — — — — 3 — Ending balance $ 34 $ 5 $ 45 $ 34 $ 5 $ 45 2014: Beginning balance $ 13 $ — $ 45 $ 60 $ — $ 44 Changes included in earnings (4 ) — — (21 ) — — Changes in fair value recognized in OCI 1 — 1 4 — 2 Changes in fair value recognized in net regulatory assets (2 ) — — — — — Settlements 1 — — 1 — — Transfers from Level 2 — — — (35 ) — — Ending balance $ 9 $ — $ 46 $ 9 $ — $ 46 The Company's long-term debt is carried at cost on the Consolidated Financial Statements. The fair value of the Company's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of the Company's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of the Company's long-term debt (in millions): As of June 30, 2015 As of December 31, 2014 Carrying Fair Carrying Fair Value Value Value Value Long-term debt $ 38,522 $ 42,676 $ 38,649 $ 43,863 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Contingencies and Guarantees [Text Block] | ( 13 ) Commitments and Contingencies Legal Matters The Company is party to a variety of legal actions arising out of the normal course of business. Plaintiffs occasionally seek punitive or exemplary damages. The Company does not believe that such normal and routine litigation will have a material impact on its consolidated financial results. The Company is also involved in other kinds of legal actions, some of which assert or may assert claims or seek to impose fines, penalties and other costs in substantial amounts and are described below. USA Power In October 2005, prior to BHE's ownership of PacifiCorp, PacifiCorp was added as a defendant to a lawsuit originally filed in February 2005 in the Third District Court of Salt Lake County, Utah ("Third District Court") by USA Power, LLC, USA Power Partners, LLC and Spring Canyon Energy, LLC (collectively, the "Plaintiff"). The Plaintiff's complaint alleged that PacifiCorp misappropriated confidential proprietary information in violation of Utah's Uniform Trade Secrets Act and accused PacifiCorp of breach of contract and related claims in regard to the Plaintiff's 2002 and 2003 proposals to build a natural gas-fueled generating facility in Juab County, Utah. In October 2007, the Third District Court granted PacifiCorp's motion for summary judgment on all counts and dismissed the Plaintiff's claims in their entirety. In a May 2010 ruling on the Plaintiff's petition for reconsideration, the Utah Supreme Court reversed summary judgment and remanded the case back to the Third District Court for further consideration. In May 2012, a jury awarded damages to the Plaintiff for breach of contract and misappropriation of a trade secret in the amounts of $18 million for actual damages and $113 million for unjust enrichment. In May 2012, the Plaintiff filed a motion seeking exemplary damages. Under the Utah Uniform Trade Secrets law, the judge may award exemplary damages in an additional amount not to exceed twice the original award. The Plaintiff also filed a motion to seek recovery of attorneys' fees in an amount equal to 40% of all amounts ultimately awarded in the case. In October 2012, PacifiCorp filed post-trial motions for a judgment notwithstanding the verdict and a new trial. As a result of a hearing in December 2012, the trial judge denied PacifiCorp's post-trial motions with the exception of reducing the aggregate amount of damages to $113 million . In January 2013, the Plaintiff filed a motion for prejudgment interest. An initial judgment was entered in April 2013 in which the trial judge denied the Plaintiff's motions for exemplary damages and prejudgment interest and ruled that PacifiCorp must pay the Plaintiff's attorneys' fees based on applying a reasonable rate to hours worked. In May 2013, a final judgment was entered against PacifiCorp in the amount of $115 million , which includes the $113 million of aggregate damages previously awarded and amounts awarded for the Plaintiff's attorneys' fees. The final judgment also ordered that postjudgment interest accrue beginning as of the date of the April 2013 initial judgment. In May 2013, PacifiCorp posted a surety bond issued by a subsidiary of Berkshire Hathaway to secure its estimated obligation. PacifiCorp strongly disagrees with the jury's verdict and is vigorously pursuing all appellate measures. Both PacifiCorp and the Plaintiff filed appeals with the Utah Supreme Court. Briefing before the Utah Supreme Court is complete and oral arguments are scheduled for September 2015. As of June 30, 2015 , PacifiCorp had accrued $120 million for the final judgment and postjudgment interest, and believes the likelihood of any additional material loss is remote; however, any additional awards against PacifiCorp could also have a material effect on the consolidated financial results. Any payment of damages will be at the end of the appeals process, which could take as long as several years. Commitments As a result of the Utah Mine Disposition discussed in Note 5 , PacifiCorp's replacement coal supply agreement for one of its generating facilities became effective in June 2015. Also during the three-month period ended June 30, 2015, PacifiCorp entered into several purchased electricity contracts from facilities that have not yet achieved commercial operation. These coal supply and purchased electricity contracts result in minimum future purchases of $70 million in 2016, $112 million in 2017, $127 million in 2018, $127 million in 2019 and $1.601 billion in 2020 and thereafter. The Solar Star Projects, which are a combined 579-MW solar project in California, were placed in-service in June 2015. BHE committed to provide Solar Star Funding, LLC and its subsidiaries with equity to fund the costs of the Solar Star Projects in an amount up to $2.75 billion , less, among other things, the gross proceeds of long-term debt issuances, project revenue prior to completion and the total equity contributions made by BHE or its subsidiaries. As of June 30, 2015, the remaining equity commitment for the Solar Star Projects is $426 million . If BHE does not maintain a minimum credit rating from two of the following three ratings agencies of at least BBB- from Standard & Poor's Ratings Services or Fitch Ratings or Baa3 from Moody's Investors Service, BHE's obligation under the equity commitment agreement would be supported by cash collateral or a letter of credit issued by a financial institution that meets certain minimum criteria specified in the financing document. Upon reaching the project completion date of the Solar Star Projects, BHE will have no further obligation to make any equity contributions and any unused equity contribution obligation will be canceled under the equity commitment agreement. In March 2015, the equity commitment for the Topaz Project was canceled as the project reached the project completion date. Environmental Laws and Regulations The Company is subject to federal, state, local and foreign laws and regulations regarding air and water quality, renewable portfolio standards, emissions performance standards, climate change, coal combustion byproduct disposal, hazardous and solid waste disposal, protected species and other environmental matters that have the potential to impact the Company's current and future operations. The Company believes it is in material compliance with all applicable laws and regulations. Guarantees The Company has entered into guarantees as part of the normal course of business and the sale of certain assets. These guarantees are not expected to have a material impact on the Company's consolidated financial results. |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Loss, Net | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Loss, Net [Text Block] | ( 14 ) Components of Other Comprehensive Income (Loss), Net The following table shows the change in AOCI attributable to BHE shareholders by each component of OCI, net of applicable income taxes (in millions): Unrealized Unrecognized Foreign Gains on Unrealized AOCI Amounts on Currency Available- Gains on Attributable Retirement Translation For-Sale Cash Flow To BHE Benefits Adjustment Securities Hedges Shareholders, Net Balance, December 31, 2013 $ (559 ) $ (98 ) $ 524 $ 36 $ (97 ) Other comprehensive income 4 131 117 19 271 Balance, June 30, 2014 $ (555 ) $ 33 $ 641 $ 55 $ 174 Balance, December 31, 2014 $ (490 ) $ (412 ) $ 390 $ 18 $ (494 ) Other comprehensive (loss) income (6 ) (161 ) 282 (6 ) 109 Balance, June 30, 2015 $ (496 ) $ (573 ) $ 672 $ 12 $ (385 ) Reclassifications from AOCI to net income for the periods ended June 30, 2015 and 2014 were insignificant. For information regarding cash flow hedge reclassifications from AOCI to net income in their entirety, refer to Note 11 . Additionally, refer to the "Foreign Operations" discussion in Note 9 for information about unrecognized amounts on retirement benefits reclassifications from AOCI that do not impact net income in their entirety. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | ( 15 ) Segment Information The Company's reportable segments with foreign operations include Northern Powergrid , whose business is principally in the United Kingdom, BHE Transmission , whose business includes operations in Canada, and BHE Renewables , whose business includes operations in the Philippines. Intersegment eliminations and adjustments, including the allocation of goodwill, have been made. Information related to the Company's reportable segments is shown below (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Operating revenue: PacifiCorp $ 1,269 $ 1,243 $ 2,519 $ 2,531 MidAmerican Funding 797 775 1,748 2,005 NV Energy 835 795 1,541 1,433 Northern Powergrid 263 324 587 641 BHE Pipeline Group 208 226 540 612 BHE Transmission 150 — 275 — BHE Renewables 190 145 314 214 HomeServices 758 617 1,206 975 BHE and Other (1) (22 ) (22 ) (61 ) (59 ) Total operating revenue $ 4,448 $ 4,103 $ 8,669 $ 8,352 Depreciation and amortization: PacifiCorp $ 196 $ 183 $ 390 $ 366 MidAmerican Funding 99 86 199 170 NV Energy 103 95 204 187 Northern Powergrid 50 50 98 98 BHE Pipeline Group 50 50 100 98 BHE Transmission 53 — 91 — BHE Renewables 56 32 105 53 HomeServices 6 8 12 15 BHE and Other (1) (3 ) (2 ) (2 ) (3 ) Total depreciation and amortization $ 610 $ 502 $ 1,197 $ 984 Operating income: PacifiCorp $ 327 $ 343 $ 600 $ 635 MidAmerican Funding 122 51 229 204 NV Energy 178 179 299 286 Northern Powergrid 130 178 323 359 BHE Pipeline Group 56 29 256 259 BHE Transmission 58 (2 ) 104 (4 ) BHE Renewables 66 80 72 109 HomeServices 85 51 83 39 BHE and Other (1) (15 ) (9 ) (29 ) (37 ) Total operating income 1,007 900 1,937 1,850 Interest expense (476 ) (425 ) (948 ) (843 ) Capitalized interest 22 22 51 51 Allowance for equity funds 30 25 61 52 Interest and dividend income 26 9 52 18 Other, net 10 16 36 23 Total income before income tax expense and equity income $ 619 $ 547 $ 1,189 $ 1,151 Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Interest expense: PacifiCorp $ 95 $ 99 $ 190 $ 195 MidAmerican Funding 50 51 100 97 NV Energy 65 71 128 141 Northern Powergrid 36 38 71 76 BHE Pipeline Group 17 19 35 38 BHE Transmission 37 — 73 — BHE Renewables 49 41 95 82 HomeServices 1 1 2 2 BHE and Other (1) 126 105 254 212 Total interest expense $ 476 $ 425 $ 948 $ 843 As of June 30, December 31, 2015 2014 Total assets: PacifiCorp $ 23,530 $ 23,466 MidAmerican Funding 15,672 15,368 NV Energy 14,457 14,454 Northern Powergrid 7,438 7,076 BHE Pipeline Group 4,896 4,968 BHE Transmission 8,005 7,992 BHE Renewables 5,712 6,123 HomeServices 2,053 1,629 BHE and Other (1) 1,593 1,228 Total assets $ 83,356 $ 82,304 Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Operating revenue by country: United States $ 4,032 $ 3,751 $ 7,801 $ 7,656 United Kingdom 263 324 587 639 Canada 153 6 280 10 Philippines and other — 22 1 47 Total operating revenue by country $ 4,448 $ 4,103 $ 8,669 $ 8,352 Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Income (loss) before income tax expense and equity income by country: United States $ 465 $ 396 $ 823 $ 843 United Kingdom 102 142 266 285 Canada 43 (3 ) 78 (4 ) Philippines and other 9 12 22 27 Total income (loss) before income tax expense and equity income by country $ 619 $ 547 $ 1,189 $ 1,151 (1) The differences between the reportable segment amounts and the consolidated amounts, described as BHE and Other , relate to other corporate entities, corporate functions and intersegment eliminations. The following table shows the change in the carrying amount of goodwill by reportable segment for the six-month period ended June 30, 2015 (in millions): BHE MidAmerican NV Northern Pipeline BHE BHE Home- PacifiCorp Funding Energy Powergrid Group Transmission Renewables Services Other Total December 31, 2014 $ 1,129 $ 2,102 $ 2,369 $ 1,100 $ 127 $ 1,657 $ 95 $ 761 $ 3 $ 9,343 Acquisitions — — — — — 31 — — — 31 Foreign currency translation — — — 7 — (118 ) — — — (111 ) Other — — — — (13 ) — — — — (13 ) June 30, 2015 $ 1,129 $ 2,102 $ 2,369 $ 1,107 $ 114 $ 1,570 $ 95 $ 761 $ 3 $ 9,250 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date (in millions): Fair Value Current assets, including cash and cash equivalents of $15 $ 174 Property, plant and equipment 5,610 Goodwill 1,731 Other long-term assets 128 Total assets 7,643 Current liabilities, including current portion of long-term debt of $79 866 Subsidiary debt, less current portion 3,772 Deferred income taxes 95 Other long-term liabilities 182 Total liabilities 4,915 Net assets acquired $ 2,728 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma financial information reflects the consolidated results of operations of BHE, non-recurring transaction costs incurred by both BHE and AltaLink during 2014 and the amortization of the purchase price adjustments each assuming the acquisition had taken place on January 1, 2013 (in millions): Six-Month Period Ended June 30, 2014 Operating revenue $ 8,632 Net income attributable to BHE shareholders $ 944 |
Property, Plant and Equipment25
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment, net consists of the following (in millions): As of Depreciable June 30, December 31, Life 2015 2014 Regulated assets: Utility generation, distribution and transmission system 5-80 years $ 66,158 $ 64,645 Interstate pipeline assets 3-80 years 6,711 6,660 72,869 71,305 Accumulated depreciation and amortization (22,259 ) (21,447 ) Regulated assets, net 50,610 49,858 Nonregulated assets: Independent power plants 5-30 years 4,741 4,362 Other assets 3-30 years 824 673 5,565 5,035 Accumulated depreciation and amortization (688 ) (839 ) Nonregulated assets, net 4,877 4,196 Net operating assets 55,487 54,054 Construction work-in-progress 4,413 5,194 Property, plant and equipment, net $ 59,900 $ 59,248 |
Investments and Restricted Ca26
Investments and Restricted Cash and Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments and Restricted Cash and Investments [Abstract] | |
Investments and Restricted Cash and Investments [Table Text Block] | Investments and restricted cash and investments consists of the following (in millions): As of June 30, December 31, 2015 2014 Investments: BYD Company Limited common stock $ 1,351 $ 881 Rabbi trusts 382 386 Other 149 126 Total investments 1,882 1,393 Equity method investments: Electric Transmission Texas, LLC 557 515 Bridger Coal Company 186 192 Other 164 161 Total equity method investments 907 868 Restricted cash and investments: Quad Cities Station nuclear decommissioning trust funds 426 424 Other 199 233 Total restricted cash and investments 625 657 Total investments and restricted cash and investments $ 3,414 $ 2,918 Reflected as: Current assets $ 118 $ 115 Noncurrent assets 3,296 2,803 Total investments and restricted cash and investments $ 3,414 $ 2,918 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense is as follows: Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Federal statutory income tax rate 35 % 35 % 35 % 35 % Income tax credits (13 ) (6 ) (12 ) (11 ) State income tax, net of federal income tax benefit 1 2 1 2 Income tax effect of foreign income and credits (8 ) (3 ) (6 ) (3 ) Equity income 2 2 2 1 Other, net (4 ) (2 ) (3 ) (1 ) Effective income tax rate 13 % 28 % 17 % 23 % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | Foreign Operations Net periodic benefit cost for the United Kingdom pension plan included the following components (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Service cost $ 6 $ 6 $ 12 $ 12 Interest cost 20 24 40 48 Expected return on plan assets (29 ) (32 ) (58 ) (63 ) Net amortization 16 14 32 27 Net periodic benefit cost $ 13 $ 12 $ 26 $ 24 Domestic Operations Net periodic benefit cost for the domestic pension and other postretirement benefit plans included the following components (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Pension: Service cost $ 8 $ 9 $ 16 $ 17 Interest cost 31 33 61 66 Expected return on plan assets (43 ) (41 ) (85 ) (82 ) Net amortization 15 9 28 20 Net periodic benefit cost $ 11 $ 10 $ 20 $ 21 Other postretirement: Service cost $ 2 $ 4 $ 6 $ 7 Interest cost 9 12 16 23 Expected return on plan assets (11 ) (12 ) (23 ) (25 ) Net amortization (3 ) (1 ) (6 ) (2 ) Net periodic benefit cost $ (3 ) $ 3 $ (7 ) $ 3 |
Risk Management and Hedging A29
Risk Management and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table, which reflects master netting arrangements and excludes contracts that have been designated as normal under the normal purchases or normal sales exception afforded by GAAP, summarizes the fair value of the Company's derivative contracts, on a gross basis, and reconciles those amounts to the amounts presented on a net basis on the Consolidated Balance Sheets (in millions): Other Other Other Current Other Current Long-term Assets Assets Liabilities Liabilities Total As of June 30, 2015 Not designated as hedging contracts: Commodity assets (1) $ 32 $ 72 $ 16 $ — $ 120 Commodity liabilities (1) (4 ) — (117 ) (165 ) (286 ) Interest rate assets 15 — — — 15 Interest rate liabilities — — (5 ) (3 ) (8 ) Total 43 72 (106 ) (168 ) (159 ) Designated as hedging contracts: Commodity assets 1 — 2 2 5 Commodity liabilities — — (24 ) (20 ) (44 ) Interest rate assets — — — — — Interest rate liabilities — — (2 ) — (2 ) Total 1 — (24 ) (18 ) (41 ) Total derivatives 44 72 (130 ) (186 ) (200 ) Cash collateral receivable — — 40 49 89 Total derivatives - net basis $ 44 $ 72 $ (90 ) $ (137 ) $ (111 ) As of December 31, 2014 Not designated as hedging contracts: Commodity assets (1) $ 47 $ 66 $ 21 $ 1 $ 135 Commodity liabilities (1) (11 ) — (146 ) (134 ) (291 ) Interest rate assets 4 — — — 4 Interest rate liabilities — — (2 ) (4 ) (6 ) Total 40 66 (127 ) (137 ) (158 ) Designated as hedging contracts: Commodity assets 1 — 5 2 8 Commodity liabilities — — (27 ) (17 ) (44 ) Interest rate assets — 1 — — 1 Interest rate liabilities — — (4 ) — (4 ) Total 1 1 (26 ) (15 ) (39 ) Total derivatives 41 67 (153 ) (152 ) (197 ) Cash collateral receivable — — 56 19 75 Total derivatives - net basis $ 41 $ 67 $ (97 ) $ (133 ) $ (122 ) (1) The Company's commodity derivatives not designated as hedging contracts are generally included in regulated rates, and as of June 30, 2015 and December 31, 2014 , a net regulatory asset of $233 million and $223 million , respectively, was recorded related to the net derivative liability of $166 million and $156 million , respectively. The difference between the net regulatory asset and the net derivative liability relates primarily to a power purchase agreement derivative at BHE Renewables. |
Schedule of Regulatory Assets (Liabilities), Net, Unrealized Loss (Gain), Net, on Derivative Contracts [Table Text Block] | The following table reconciles the beginning and ending balances of the Company's net regulatory assets and summarizes the pre-tax gains and losses on commodity derivative contracts recognized in net regulatory assets, as well as amounts reclassified to earnings (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Beginning balance $ 255 $ 159 $ 223 $ 182 Changes in fair value recognized in net regulatory assets (3 ) (11 ) 57 (7 ) Net (losses) gains reclassified to operating revenue (2 ) (5 ) 7 (35 ) Net (losses) gains reclassified to cost of sales (17 ) (1 ) (54 ) 2 Ending balance $ 233 $ 142 $ 233 $ 142 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table reconciles the beginning and ending balances of the Company's accumulated other comprehensive (income) loss (pre-tax) and summarizes pre-tax gains and losses on commodity derivative contracts designated and qualifying as cash flow hedges recognized in other comprehensive income ("OCI"), as well as amounts reclassified to earnings (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Beginning balance $ 27 $ (12 ) $ 32 $ 12 Changes in fair value recognized in OCI 25 (18 ) 17 (77 ) Net gains reclassified to operating revenue 2 — 3 — Net (losses) gains reclassified to cost of sales (16 ) 5 (14 ) 40 Ending balance $ 38 $ (25 ) $ 38 $ (25 ) |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table summarizes the net notional amounts of outstanding derivative contracts with fixed price terms that comprise the mark-to-market values as of (in millions): Unit of June 30, December 31, Measure 2015 2014 Electricity purchases Megawatt hours 10 6 Natural gas purchases Decatherms 318 308 Fuel purchases Gallons 7 2 Interest rate swaps US$ 432 443 Mortgage sale commitments, net US$ (532 ) (264 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table presents the Company's assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions): Input Levels for Fair Value Measurements Level 1 Level 2 Level 3 Other (1) Total As of June 30, 2015 Assets: Commodity derivatives $ — $ 38 $ 87 $ (24 ) $ 101 Interest rate derivatives — 8 7 — 15 Mortgage loans held for sale — 566 — — 566 Money market mutual funds (2) 877 — — — 877 Debt securities: United States government obligations 131 — — — 131 International government obligations — 3 — — 3 Corporate obligations — 40 — — 40 Municipal obligations — 2 — — 2 Agency, asset and mortgage-backed obligations — 3 — — 3 Auction rate securities — — 45 — 45 Equity securities: United States companies 239 — — — 239 International companies 1,357 — — — 1,357 Investment funds 160 — — — 160 $ 2,764 $ 660 $ 139 $ (24 ) $ 3,539 Liabilities: Commodity derivatives $ (12 ) $ (265 ) $ (53 ) $ 113 $ (217 ) Interest rate derivatives — (8 ) (2 ) — (10 ) $ (12 ) $ (273 ) $ (55 ) $ 113 $ (227 ) Input Levels for Fair Value Measurements Level 1 Level 2 Level 3 Other (1) Total As of December 31, 2014 Assets: Commodity derivatives $ 1 $ 48 $ 94 $ (40 ) $ 103 Interest rate derivatives — 5 — — 5 Mortgage loans held for sale — 279 — — 279 Money market mutual funds (2) 320 — — — 320 Debt securities: United States government obligations 136 — — — 136 International government obligations — 1 — — 1 Corporate obligations — 39 — — 39 Municipal obligations — 2 — — 2 Agency, asset and mortgage-backed obligations — 2 — — 2 Auction rate securities — — 45 — 45 Equity securities: United States companies 238 — — — 238 International companies 886 — — — 886 Investment funds 137 — — — 137 $ 1,718 $ 376 $ 139 $ (40 ) $ 2,193 Liabilities: Commodity derivatives $ (18 ) $ (274 ) $ (43 ) $ 115 $ (220 ) Interest rate derivatives — (10 ) — — (10 ) $ (18 ) $ (284 ) $ (43 ) $ 115 $ (230 ) (1) Represents netting under master netting arrangements and a net cash collateral receivable of $89 million and $75 million as of June 30, 2015 and December 31, 2014 , respectively. (2) Amounts are included in cash and cash equivalents; other current assets; and noncurrent investments and restricted cash and investments on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost. |
Fair Value Assets and Liabilities Net Measured On Recurring Basis Unobservable Input Reconciliation [Table Text Block] | The following table reconciles the beginning and ending balances of the Company's assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, Interest Auction Interest Auction Commodity Rate Rate Commodity Rate Rate Derivatives Derivatives Securities Derivatives Derivatives Securities 2015: Beginning balance $ 49 $ 8 $ 44 $ 51 $ — $ 45 Changes included in earnings 3 24 — 11 45 — Changes in fair value recognized in OCI (4 ) — 1 (3 ) — — Changes in fair value recognized in net regulatory assets (14 ) — — (17 ) — — Purchases 1 — — 1 — — Settlements (1 ) (27 ) — (9 ) (43 ) — Transfers from Level 2 — — — — 3 — Ending balance $ 34 $ 5 $ 45 $ 34 $ 5 $ 45 2014: Beginning balance $ 13 $ — $ 45 $ 60 $ — $ 44 Changes included in earnings (4 ) — — (21 ) — — Changes in fair value recognized in OCI 1 — 1 4 — 2 Changes in fair value recognized in net regulatory assets (2 ) — — — — — Settlements 1 — — 1 — — Transfers from Level 2 — — — (35 ) — — Ending balance $ 9 $ — $ 46 $ 9 $ — $ 46 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table presents the carrying value and estimated fair value of the Company's long-term debt (in millions): As of June 30, 2015 As of December 31, 2014 Carrying Fair Carrying Fair Value Value Value Value Long-term debt $ 38,522 $ 42,676 $ 38,649 $ 43,863 |
Components of Accumulated Oth31
Components of Accumulated Other Comprehensive Loss, Net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Loss, Net [Table Text Block] | The following table shows the change in AOCI attributable to BHE shareholders by each component of OCI, net of applicable income taxes (in millions): Unrealized Unrecognized Foreign Gains on Unrealized AOCI Amounts on Currency Available- Gains on Attributable Retirement Translation For-Sale Cash Flow To BHE Benefits Adjustment Securities Hedges Shareholders, Net Balance, December 31, 2013 $ (559 ) $ (98 ) $ 524 $ 36 $ (97 ) Other comprehensive income 4 131 117 19 271 Balance, June 30, 2014 $ (555 ) $ 33 $ 641 $ 55 $ 174 Balance, December 31, 2014 $ (490 ) $ (412 ) $ 390 $ 18 $ (494 ) Other comprehensive (loss) income (6 ) (161 ) 282 (6 ) 109 Balance, June 30, 2015 $ (496 ) $ (573 ) $ 672 $ 12 $ (385 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company's reportable segments with foreign operations include Northern Powergrid , whose business is principally in the United Kingdom, BHE Transmission , whose business includes operations in Canada, and BHE Renewables , whose business includes operations in the Philippines. Intersegment eliminations and adjustments, including the allocation of goodwill, have been made. Information related to the Company's reportable segments is shown below (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Operating revenue: PacifiCorp $ 1,269 $ 1,243 $ 2,519 $ 2,531 MidAmerican Funding 797 775 1,748 2,005 NV Energy 835 795 1,541 1,433 Northern Powergrid 263 324 587 641 BHE Pipeline Group 208 226 540 612 BHE Transmission 150 — 275 — BHE Renewables 190 145 314 214 HomeServices 758 617 1,206 975 BHE and Other (1) (22 ) (22 ) (61 ) (59 ) Total operating revenue $ 4,448 $ 4,103 $ 8,669 $ 8,352 Depreciation and amortization: PacifiCorp $ 196 $ 183 $ 390 $ 366 MidAmerican Funding 99 86 199 170 NV Energy 103 95 204 187 Northern Powergrid 50 50 98 98 BHE Pipeline Group 50 50 100 98 BHE Transmission 53 — 91 — BHE Renewables 56 32 105 53 HomeServices 6 8 12 15 BHE and Other (1) (3 ) (2 ) (2 ) (3 ) Total depreciation and amortization $ 610 $ 502 $ 1,197 $ 984 Operating income: PacifiCorp $ 327 $ 343 $ 600 $ 635 MidAmerican Funding 122 51 229 204 NV Energy 178 179 299 286 Northern Powergrid 130 178 323 359 BHE Pipeline Group 56 29 256 259 BHE Transmission 58 (2 ) 104 (4 ) BHE Renewables 66 80 72 109 HomeServices 85 51 83 39 BHE and Other (1) (15 ) (9 ) (29 ) (37 ) Total operating income 1,007 900 1,937 1,850 Interest expense (476 ) (425 ) (948 ) (843 ) Capitalized interest 22 22 51 51 Allowance for equity funds 30 25 61 52 Interest and dividend income 26 9 52 18 Other, net 10 16 36 23 Total income before income tax expense and equity income $ 619 $ 547 $ 1,189 $ 1,151 Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Interest expense: PacifiCorp $ 95 $ 99 $ 190 $ 195 MidAmerican Funding 50 51 100 97 NV Energy 65 71 128 141 Northern Powergrid 36 38 71 76 BHE Pipeline Group 17 19 35 38 BHE Transmission 37 — 73 — BHE Renewables 49 41 95 82 HomeServices 1 1 2 2 BHE and Other (1) 126 105 254 212 Total interest expense $ 476 $ 425 $ 948 $ 843 As of June 30, December 31, 2015 2014 Total assets: PacifiCorp $ 23,530 $ 23,466 MidAmerican Funding 15,672 15,368 NV Energy 14,457 14,454 Northern Powergrid 7,438 7,076 BHE Pipeline Group 4,896 4,968 BHE Transmission 8,005 7,992 BHE Renewables 5,712 6,123 HomeServices 2,053 1,629 BHE and Other (1) 1,593 1,228 Total assets $ 83,356 $ 82,304 Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Operating revenue by country: United States $ 4,032 $ 3,751 $ 7,801 $ 7,656 United Kingdom 263 324 587 639 Canada 153 6 280 10 Philippines and other — 22 1 47 Total operating revenue by country $ 4,448 $ 4,103 $ 8,669 $ 8,352 Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2015 2014 2015 2014 Income (loss) before income tax expense and equity income by country: United States $ 465 $ 396 $ 823 $ 843 United Kingdom 102 142 266 285 Canada 43 (3 ) 78 (4 ) Philippines and other 9 12 22 27 Total income (loss) before income tax expense and equity income by country $ 619 $ 547 $ 1,189 $ 1,151 (1) The differences between the reportable segment amounts and the consolidated amounts, described as BHE and Other , relate to other corporate entities, corporate functions and intersegment eliminations. |
Schedule of Goodwill [Table Text Block] | The following table shows the change in the carrying amount of goodwill by reportable segment for the six-month period ended June 30, 2015 (in millions): BHE MidAmerican NV Northern Pipeline BHE BHE Home- PacifiCorp Funding Energy Powergrid Group Transmission Renewables Services Other Total December 31, 2014 $ 1,129 $ 2,102 $ 2,369 $ 1,100 $ 127 $ 1,657 $ 95 $ 761 $ 3 $ 9,343 Acquisitions — — — — — 31 — — — 31 Foreign currency translation — — — 7 — (118 ) — — — (111 ) Other — — — — (13 ) — — — — (13 ) June 30, 2015 $ 1,129 $ 2,102 $ 2,369 $ 1,107 $ 114 $ 1,570 $ 95 $ 761 $ 3 $ 9,250 |
General (Details)
General (Details) - 6 months ended Jun. 30, 2015 | OperatingSegmentsOwnedAndOperatedCompanies |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | OperatingSegments | 8 |
Number of owned and operated utility companies in the United States | 4 |
Number of states owned and operated utility companies serve customers | 11 |
Number of owned and operated interstate natural gas pipeline companies in the United States | 2 |
Number of owned and operated electricity distribution companies in Great Britain | 2 |
Number of owned and operated electricity transmission companies in Canada | 1 |
Number of owned and operated renewable energy businesses | 1 |
Number of owned and operated residential real estate brokerage firms in the United States | 1 |
Number of owned and operated residential real estate brokerage franchise networks in the United States | 1 |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements (Details) $ in Millions | Jan. 01, 2015USD ($) |
Retained Earnings [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Adoption of ASC 853 | $ 56 |
Noncontrolling Interest [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Adoption of ASC 853 | $ 11 |
Business Acquisitions (Details)
Business Acquisitions (Details) $ in Millions, CAD in Billions | 1 Months Ended | 6 Months Ended | ||
Dec. 31, 2014USD ($)substationmi | Jun. 30, 2015USD ($) | Dec. 01, 2014USD ($) | Dec. 01, 2014CAD | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 9,343 | $ 9,250 | ||
Business acquisition, measurement period | ||||
AltaLink, LP Transaction [Member] | ||||
Business Acquisition [Line Items] | ||||
Current assets, including cash and cash equivalents of $15 | $ 174 | |||
Property, plant and equipment | 5,610 | |||
Goodwill | 1,731 | |||
Other long-term assets | 128 | |||
Total assets | 7,643 | |||
Current liabilities, including current portion of long-term debt of $79 | 866 | |||
Subsidiary debt, less current portion | 3,772 | |||
Deferred income taxes | 95 | |||
Other long-term liabilities | 182 | |||
Total liabilities | 4,915 | |||
Net assets acquired | 2,728 | CAD 3.1 | ||
Cash and cash equivalents assumed | 15 | |||
Current portion of long-term debt assumed | $ 79 | |||
Transmission line | mi | 7,800 | |||
Substation | substation | 300 | |||
Common Stock [Member] | AltaLink, LP Transaction [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, percentage of voting interests acquired | 100.00% | 100.00% | ||
Junior Subordinated Debt [Member] | AltaLink, LP Transaction [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire businesses, gross | $ 1,500 | |||
Commercial Paper [Member] | AltaLink, LP Transaction [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire businesses, gross | $ 1,000 |
Business Acquisitions Business
Business Acquisitions Business Acquisitions - Pro Forma (Details) - AltaLink, LP Transaction [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2014USD ($) | |
Business Acquisition [Line Items] | |
Pro forma operating revenue | $ 8,632 |
Pro forma net income attributable to BHE shareholders | $ 944 |
Property, Plant and Equipment37
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment in service, net | $ 55,487 | $ 54,054 |
Construction work-in-progress | 4,413 | 5,194 |
Property, plant and equipment, net | 59,900 | 59,248 |
Regulated assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 72,869 | 71,305 |
Accumulated depreciation and amortization | (22,259) | (21,447) |
Property, plant and equipment in service, net | 50,610 | 49,858 |
Construction work-in-progress | 4,200 | 4,300 |
Regulated assets [Member] | Utility generation, distribution and transmission system | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 66,158 | 64,645 |
Regulated assets [Member] | Utility generation, distribution and transmission system | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 5 years | |
Regulated assets [Member] | Utility generation, distribution and transmission system | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 80 years | |
Regulated assets [Member] | Interstate pipeline assets | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 6,711 | 6,660 |
Regulated assets [Member] | Interstate pipeline assets | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 3 years | |
Regulated assets [Member] | Interstate pipeline assets | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 80 years | |
Unregulated operation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 5,565 | 5,035 |
Accumulated depreciation and amortization | (688) | (839) |
Property, plant and equipment in service, net | 4,877 | 4,196 |
Unregulated operation [Member] | Independent power plants | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 4,741 | 4,362 |
Unregulated operation [Member] | Independent power plants | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 5 years | |
Unregulated operation [Member] | Independent power plants | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 30 years | |
Unregulated operation [Member] | Other assets | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 824 | $ 673 |
Unregulated operation [Member] | Other assets | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 3 years | |
Unregulated operation [Member] | Other assets | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 30 years |
Investments and Restricted Ca38
Investments and Restricted Cash and Investments (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Investments | $ 1,882 | $ 1,393 |
Equity Method Investments [Abstract] | ||
Equity method investments | 907 | 868 |
Restricted Cash and Investments [Abstract] | ||
Restricted cash and investments | 625 | 657 |
Investments, including equity method investments and restricted cash and investments | 3,414 | 2,918 |
Investments, including equity method investments and restricted cash and investments, current | 118 | 115 |
Investments, including equity method investments and restricted cash and investments, noncurrent | 3,296 | 2,803 |
Quad Cities Station nuclear decommissioning trust funds [Member] | ||
Restricted Cash and Investments [Abstract] | ||
Decommissioning fund investments, fair value | 426 | 424 |
Other restricted cash and investments [Member] | ||
Restricted Cash and Investments [Abstract] | ||
Restricted cash and investments | 199 | 233 |
ETT [Member] | ||
Equity Method Investments [Abstract] | ||
Equity method investments | 557 | 515 |
Bridger Coal Company [Member] | ||
Equity Method Investments [Abstract] | ||
Equity method investments | 186 | 192 |
Other equity method investments [Member] | ||
Equity Method Investments [Abstract] | ||
Equity method investments | 164 | 161 |
BYD Company Limited common stock [Member] | ||
Investments [Abstract] | ||
Available-for-sale securities, equity securities | 1,351 | 881 |
Available-for-sale securities, gross unrealized gain (loss) | 1,100 | 649 |
Rabbi trusts [Member] | ||
Investments [Abstract] | ||
Rabbi trusts, amount | 382 | 386 |
Other investments [Member] | ||
Investments [Abstract] | ||
Other investments | $ 149 | $ 126 |
Recent Financing Transactions R
Recent Financing Transactions Recent Financing Transactions - Long-Term Debt (Details) ÂŁ in Millions, CAD in Millions, $ in Millions | Jun. 30, 2015USD ($) | Jun. 30, 2015CAD | Apr. 30, 2015GBP (ÂŁ) | Mar. 31, 2015USD ($) | Mar. 31, 2015CAD |
Berkshire Hathaway Energy [Member] | BHE Junior Subordinated Debentures [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Repurchased Face Amount | $ 600 | ||||
PacifiCorp [Member] | PacifiCorp First Mortgage Bonds, 3.35%, Due July 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 250 | ||||
Debt instrument, interest rate, stated percentage | 3.35% | 3.35% | |||
AltaLink, L.P. [Member] | Altalink, L.P. Medium Term Notes 4.09% due June 2045 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | CAD | CAD 350 | ||||
Debt instrument, interest rate, stated percentage | 4.09% | 4.09% | |||
Northern Powergrid (Yorkshire) plc [Member] | Northern Powergrid (Yorkshire) 2.50% Bonds due April 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | ÂŁ | ÂŁ 150 | ||||
Debt instrument, interest rate, stated percentage | 2.50% | ||||
Solar Star Funding, LLC [Member] | Solar Star Funding LLC Series B Senior Secured Notes 3.95% due June 2016 through June 2035 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 325 | ||||
Debt instrument, interest rate, stated percentage | 3.95% | 3.95% | |||
AltaLink Investments, L.P. [Member] | Altalink Investments 15-1 Series Bonds 2.244% due March 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | CAD | CAD 200 | ||||
Debt instrument, interest rate, stated percentage | 2.244% | 2.244% |
Recent Financing Transactions40
Recent Financing Transactions Recent Financings - Credit Facilities (Details) - Letter of Credit [Member] - USD ($) $ in Millions | 1 Months Ended | |
Mar. 31, 2015 | Jun. 30, 2015 | |
Topaz [Member] | Letter of credit and reimbursement facility, Topaz [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 326 | |
Line of credit facility, borrowing capacity replaced | 345 | |
Letters of credit outstanding, amount | $ 316 | |
PacifiCorp [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding, amount | 428 | |
Line of credit facility, amounts supported | $ 56 | |
PacifiCorp [Member] | Letters of credit supporting tax-exempt bond obligations [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of credit issued during the period | 191 | |
PacifiCorp [Member] | Letters of credit supported by credit facility [Member] | Letters of credit supporting tax-exempt bond obligations [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of credit issued during the period | $ 23 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
Income tax credits | (13.00%) | (6.00%) | (12.00%) | (11.00%) |
State income tax, net of federal income tax benefit | 1.00% | 2.00% | 1.00% | 2.00% |
Income tax effect of foreign income and credits | (8.00%) | (3.00%) | (6.00%) | (3.00%) |
Equity income | 2.00% | 2.00% | 2.00% | 1.00% |
Other, net | (4.00%) | (2.00%) | (3.00%) | (1.00%) |
Effective income tax rate | 13.00% | 28.00% | 17.00% | 23.00% |
Production Tax Credit Carryforwards [Abstract] | ||||
Years eligible for federal renewable energy production tax credit | 10 years | |||
Related Party Income Tax Receivable (Payable) [Abstract] | ||||
Related party transaction, cash received for income taxes, net | $ 1,400 | $ 187 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | May. 31, 2015 | |
Domestic Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 8 | $ 9 | $ 16 | $ 17 | |
Interest cost | 31 | 33 | 61 | 66 | |
Expected return on plan assets | (43) | (41) | (85) | (82) | |
Net amortization | 15 | 9 | 28 | 20 | |
Net periodic benefit cost | 11 | 10 | 20 | 21 | |
Domestic Other Postretirement Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 2 | 4 | 6 | 7 | |
Interest cost | 9 | 12 | 16 | 23 | |
Expected return on plan assets | (11) | (12) | (23) | (25) | |
Net amortization | (3) | (1) | (6) | (2) | |
Net periodic benefit cost | (3) | 3 | (7) | 3 | |
UK Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 6 | 6 | 12 | 12 | |
Interest cost | 20 | 24 | 40 | 48 | |
Expected return on plan assets | (29) | (32) | (58) | (63) | |
Net amortization | 16 | 14 | 32 | 27 | |
Net periodic benefit cost | $ 13 | $ 12 | $ 26 | $ 24 | |
PacifiCorp [Member] | Domestic Other Postretirement Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, amount to be transferred | $ 150 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost Not Yet Recognized, Regulatory Deferrals, Before Tax | $ 9 |
Employee Benefit Plans - Employ
Employee Benefit Plans - Employer Contributions (Details) - 6 months ended Jun. 30, 2015 ÂŁ in Millions, $ in Millions | USD ($) | GBP (ÂŁ) |
Domestic Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, expected contributions in current fiscal year | $ 34 | |
Employer contributions | 6 | |
Domestic Other Postretirement Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, expected contributions in current fiscal year | 1 | |
UK Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, expected contributions in current fiscal year | ÂŁ | ÂŁ 49 | |
Employer contributions | $ 39 | ÂŁ 25 |
Asset Retirement Obligations As
Asset Retirement Obligations Asset Retirement Obligations (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligation | $ 806 | $ 687 |
Risk Management and Hedging A45
Risk Management and Hedging Activities - Balance Sheet Location (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | $ (200) | $ (197) | |||||
Cash collateral, net receivable, offset against derivative positions | 89 | 75 | |||||
Derivative assets (liabilities), at fair value, net | (111) | (122) | |||||
Other Current Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | 44 | 41 | |||||
Cash collateral, net receivable, offset against derivative positions | 0 | 0 | |||||
Derivative assets (liabilities), at fair value, net | 44 | 41 | |||||
Other Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | 72 | 67 | |||||
Cash collateral, net receivable, offset against derivative positions | 0 | 0 | |||||
Derivative assets (liabilities), at fair value, net | 72 | 67 | |||||
Other Current Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | (130) | (153) | |||||
Cash collateral, net receivable, offset against derivative positions | 40 | 56 | |||||
Derivative assets (liabilities), at fair value, net | (90) | (97) | |||||
Other Long-Term Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | (186) | (152) | |||||
Cash collateral, net receivable, offset against derivative positions | 49 | 19 | |||||
Derivative assets (liabilities), at fair value, net | (137) | (133) | |||||
Not Designated as Hedging Instrument [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | (159) | (158) | |||||
Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | 43 | 40 | |||||
Not Designated as Hedging Instrument [Member] | Other Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | 72 | 66 | |||||
Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | (106) | (127) | |||||
Not Designated as Hedging Instrument [Member] | Other Long-Term Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | (168) | (137) | |||||
Designated as Hedging Instrument [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | (41) | (39) | |||||
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | 1 | 1 | |||||
Designated as Hedging Instrument [Member] | Other Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | 0 | 1 | |||||
Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | (24) | (26) | |||||
Designated as Hedging Instrument [Member] | Other Long-Term Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, fair value, net | (18) | (15) | |||||
Commodity derivative [Member] | Not Designated as Hedging Instrument [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | [1] | 120 | 135 | ||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | [1] | (286) | (291) | ||||
Derivative, fair value, net | (166) | (156) | |||||
Net regulatory asset | 233 | $ 255 | 223 | $ 142 | $ 159 | $ 182 | |
Commodity derivative [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | [1] | 32 | 47 | ||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | [1] | (4) | (11) | ||||
Commodity derivative [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | [1] | 72 | 66 | ||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | [1] | 0 | 0 | ||||
Commodity derivative [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | [1] | 16 | 21 | ||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | [1] | (117) | (146) | ||||
Commodity derivative [Member] | Not Designated as Hedging Instrument [Member] | Other Long-Term Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | [1] | 0 | 1 | ||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | [1] | (165) | (134) | ||||
Commodity derivative [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 5 | 8 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (44) | (44) | |||||
Commodity derivative [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 1 | 1 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | 0 | 0 | |||||
Commodity derivative [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 0 | 0 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | 0 | 0 | |||||
Commodity derivative [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 2 | 5 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (24) | (27) | |||||
Commodity derivative [Member] | Designated as Hedging Instrument [Member] | Other Long-Term Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 2 | 2 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (20) | (17) | |||||
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 15 | 4 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (8) | (6) | |||||
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 15 | 4 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | 0 | 0 | |||||
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 0 | 0 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | 0 | 0 | |||||
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 0 | 0 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (5) | (2) | |||||
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Long-Term Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 0 | 0 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (3) | (4) | |||||
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 0 | 1 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (2) | (4) | |||||
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 0 | 0 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | 0 | 0 | |||||
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 0 | 1 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | 0 | 0 | |||||
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 0 | 0 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (2) | (4) | |||||
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Long-Term Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 0 | 0 | |||||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | $ 0 | $ 0 | |||||
[1] | The Company's commodity derivatives not designated as hedging contracts are generally included in regulated rates, and as of June 30, 2015 and December 31, 2014, a net regulatory asset of $233 million and $223 million, respectively, was recorded related to the net derivative liability of $166 million and $156 million, respectively. |
Risk Management and Hedging A46
Risk Management and Hedging Activities Risk Management and Hedging Activities - Not Designated as Hedging Contracts (Details) - Not Designated as Hedging Instrument [Member] - Commodity derivative [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Regulatory Assets (Liabilities), Net, Derivatives [Roll Forward] | ||||
Beginning balance | $ 255 | $ 159 | $ 223 | $ 182 |
Changes in fair value recognized in net regulatory assets | (3) | (11) | 57 | (7) |
Net (losses) gains reclassified to operating revenue | (2) | (5) | 7 | (35) |
Net (losses) gains reclassified to cost of sales | (17) | (1) | (54) | 2 |
Ending balance | $ 233 | $ 142 | $ 233 | $ 142 |
Risk Management and Hedging A47
Risk Management and Hedging Activities Risk Management and Hedging Activities - Designated as Hedging Contracts (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive (Income) Loss, Net, Derivatives [Roll Forward] | ||||
Cash flow hedge ineffectiveness | insignificant | insignificant | insignificant | insignificant |
Cash flow hedge loss to be reclassified within twelve months | $ 22 | |||
Commodity derivative [Member] | ||||
Accumulated Other Comprehensive (Income) Loss, Net, Derivatives [Roll Forward] | ||||
Beginning balance | $ 27 | $ (12) | 32 | $ 12 |
Changes in fair value recognized in OCI | 25 | (18) | 17 | (77) |
Net gains reclassified to operating revenue | 2 | 0 | 3 | 0 |
Net (losses) gains reclassified to cost of sales | (16) | 5 | (14) | 40 |
Ending balance | $ 38 | $ (25) | $ 38 | $ (25) |
Risk Management and Hedging A48
Risk Management and Hedging Activities - Derivative Contract Volumes (Details) gal in Millions, MWh in Millions, Dth in Millions, $ in Millions | Jun. 30, 2015USD ($)MWhgalDth | Dec. 31, 2014USD ($)MWhgalDth |
Electricity purchases (in megawatt hours) [Member] | Commodity derivative [Member] | ||
Notional Amounts of Outstanding Derivative Positions [Line Items] | ||
Derivative, nonmonetary notional amount | MWh | 10 | 6 |
Natural gas purchases (in decatherms) [Member] | Commodity derivative [Member] | ||
Notional Amounts of Outstanding Derivative Positions [Line Items] | ||
Derivative, nonmonetary notional amount | Dth | 318 | 308 |
Fuel purchases (in gallons) [Member] | Commodity derivative [Member] | ||
Notional Amounts of Outstanding Derivative Positions [Line Items] | ||
Derivative, nonmonetary notional amount | gal | 7 | 2 |
Interest rate swap [Member] | Interest Rate Contract [Member] | ||
Notional Amounts of Outstanding Derivative Positions [Line Items] | ||
Derivative, notional amount | $ 432 | $ 443 |
Mortgage sale commitments, net [Member] | Interest Rate Contract [Member] | ||
Notional Amounts of Outstanding Derivative Positions [Line Items] | ||
Derivative, notional amount | $ (532) | $ (264) |
Risk Management and Hedging A49
Risk Management and Hedging Activities - Collateral and Contingent Features (Details) - Commodity derivative [Member] - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Derivative, net liability position, aggregate fair value | $ 256 | $ 243 |
Collateral already posted, aggregate fair value | 58 | 28 |
Additional collateral, aggregate fair value | $ 186 | $ 182 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash collateral, net receivable, offset against derivative positions | $ 89 | $ 75 | ||
Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset, fair value, gross liability and obligation to return cash, offset | [1] | (24) | (40) | |
Assets, fair value disclosure | 3,539 | 2,193 | ||
Derivative liability, fair value, gross asset and right to reclaim cash, offset | [1] | 113 | 115 | |
Derivative liabilities | (227) | (230) | ||
Cash collateral, net receivable, offset against derivative positions | 89 | 75 | ||
Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value disclosure | 2,764 | 1,718 | ||
Derivative liabilities | (12) | (18) | ||
Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value disclosure | 660 | 376 | ||
Derivative liabilities | (273) | (284) | ||
Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value disclosure | 139 | 139 | ||
Derivative liabilities | (55) | (43) | ||
Mortgage Loans on Real Estate [Member] | Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 566 | 279 | ||
Mortgage Loans on Real Estate [Member] | Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 566 | 279 | ||
Mortgage Loans on Real Estate [Member] | Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Money market mutual funds [Member] | Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | [2] | 877 | 320 | |
Money market mutual funds [Member] | Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | [2] | 877 | 320 | |
Money market mutual funds [Member] | Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | [2] | 0 | 0 | |
Money market mutual funds [Member] | Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | [2] | 0 | 0 | |
United States government obligations [Member] | Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 131 | 136 | ||
United States government obligations [Member] | Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 131 | 136 | ||
United States government obligations [Member] | Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
United States government obligations [Member] | Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
International government obligations [Member] | Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3 | 1 | ||
International government obligations [Member] | Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
International government obligations [Member] | Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3 | 1 | ||
International government obligations [Member] | Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Corporate obligations [Member] | Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 40 | 39 | ||
Corporate obligations [Member] | Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Corporate obligations [Member] | Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 40 | 39 | ||
Corporate obligations [Member] | Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Municipal obligations [Member] | Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 2 | 2 | ||
Municipal obligations [Member] | Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Municipal obligations [Member] | Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 2 | 2 | ||
Municipal obligations [Member] | Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Agency, asset and mortgage-backed obligations [Member] | Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3 | 2 | ||
Agency, asset and mortgage-backed obligations [Member] | Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Agency, asset and mortgage-backed obligations [Member] | Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3 | 2 | ||
Agency, asset and mortgage-backed obligations [Member] | Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Auction rate securities [Member] | Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 45 | 45 | ||
Auction rate securities [Member] | Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Auction rate securities [Member] | Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Auction rate securities [Member] | Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 45 | 45 | ||
United States companies [Member] | Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 239 | 238 | ||
United States companies [Member] | Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 239 | 238 | ||
United States companies [Member] | Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
United States companies [Member] | Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
International companies [Member] | Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 1,357 | 886 | ||
International companies [Member] | Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 1,357 | 886 | ||
International companies [Member] | Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
International companies [Member] | Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Investment funds [Member] | Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 160 | 137 | ||
Investment funds [Member] | Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 160 | 137 | ||
Investment funds [Member] | Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Investment funds [Member] | Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Commodity derivative [Member] | Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset, fair value, gross liability and obligation to return cash, offset | (24) | [1] | (40) | |
Derivative assets | 101 | 103 | ||
Derivative liability, fair value, gross asset and right to reclaim cash, offset | [1] | 113 | 115 | |
Derivative liabilities | (217) | (220) | ||
Commodity derivative [Member] | Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 0 | 1 | ||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (12) | (18) | ||
Commodity derivative [Member] | Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 38 | 48 | ||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (265) | (274) | ||
Commodity derivative [Member] | Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 87 | 94 | ||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (53) | (43) | ||
Interest Rate Contract [Member] | Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 15 | 5 | ||
Derivative liabilities | (10) | (10) | ||
Interest Rate Contract [Member] | Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 0 | 0 | ||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | 0 | 0 | ||
Interest Rate Contract [Member] | Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 8 | 5 | ||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (8) | (10) | ||
Interest Rate Contract [Member] | Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 7 | 0 | ||
Derivative liability, fair value, gross liability including not subject to master netting arrangement | $ (2) | $ 0 | ||
[1] | Represents netting under master netting arrangements and a net cash collateral receivable of $89 million and $75 million as of June 30, 2015 and December 31, 2014, respectively. | |||
[2] | Amounts are included in cash and cash equivalents; other current assets; and noncurrent investments and restricted cash and investments on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost. |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Commodity derivative [Member] | ||||
Fair Value, Assets (Liabilities), Net, Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 49 | $ 13 | $ 51 | $ 60 |
Changes included in earnings | 3 | (4) | 11 | (21) |
Changes in fair value recognized in other comprehensive income | (4) | 1 | (3) | 4 |
Changes in fair value recognized in net regulatory assets | (14) | (2) | (17) | 0 |
Purchases | 1 | 1 | ||
Settlements | (1) | 1 | (9) | 1 |
Transfers from Level 2 | 0 | 0 | 0 | (35) |
Ending balance | 34 | 9 | 34 | 9 |
Interest Rate Lock Commitments [Member] | ||||
Fair Value, Assets (Liabilities), Net, Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 8 | 0 | 0 | 0 |
Changes included in earnings | 24 | 0 | 45 | 0 |
Changes in fair value recognized in other comprehensive income | 0 | 0 | 0 | 0 |
Changes in fair value recognized in net regulatory assets | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | ||
Settlements | (27) | 0 | (43) | 0 |
Transfers from Level 2 | 0 | 0 | 3 | 0 |
Ending balance | 5 | 0 | 5 | 0 |
Auction rate securities [Member] | ||||
Fair Value, Assets (Liabilities), Net, Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 44 | 45 | 45 | 44 |
Changes included in earnings | 0 | 0 | 0 | 0 |
Changes in fair value recognized in other comprehensive income | 1 | 1 | 0 | 2 |
Changes in fair value recognized in net regulatory assets | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | ||
Settlements | 0 | 0 | 0 | 0 |
Transfers from Level 2 | 0 | 0 | 0 | 0 |
Ending balance | $ 45 | $ 46 | $ 45 | $ 46 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying value | $ 38,522 | $ 38,649 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 42,676 | $ 43,863 |
Commitments and Contingencies -
Commitments and Contingencies - Legal Matters (Details) - Jun. 30, 2015 - PacifiCorp [Member] - USA Power [Member] - USD ($) $ in Millions | Total |
Loss Contingencies [Line Items] | |
Loss contingency, damages sought, legal fees as a percentage of damages | 40.00% |
Loss contingency, damages awarded, value | $ 113 |
Loss contingency, damages and attorney fees awarded, value | 115 |
Loss contingency accrual, at carrying value | 120 |
Damages from Breach of Contract, Awarded By Jury [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency, damages awarded by jury, value | 18 |
Damages from Unjust Enrichment, Awarded By Jury [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency, damages awarded by jury, value | $ 113 |
Commitments and Contingencies54
Commitments and Contingencies - Commitments (Details) $ in Millions | Jun. 30, 2015USD ($) |
Solar Star Projects [Member] | |
ContractualObligationFiscalYearMaturityScheduleTable [Line Items] | |
Equity funding and contribution agreement, amount committed | $ 2,750 |
Equity commitment, outstanding amount | 426 |
Fuel, capacity and transmission contract commitments, not commercially operable [Member] | PacifiCorp [Member] | |
ContractualObligationFiscalYearMaturityScheduleTable [Line Items] | |
Purchase obligation, due in second year | 70 |
Purchase obligation, due in third year | 112 |
Purchase obligation, due in fourth year | 127 |
Purchase obligation, due in fifth year | 127 |
Purchase obligation, due after fifth year | $ 1,601 |
Components of Accumulated Oth55
Components of Accumulated Other Comprehensive Loss, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance - accumulated other comprehensive loss attributable to BHE shareholders, net | $ (494) | |||
Other comprehensive income (loss), unrecognized amounts on retirement benefits | $ (28) | $ (3) | (6) | $ 4 |
Other comprehensive income (loss), foreign currency translation adjustment | 263 | 102 | (161) | 131 |
Other comprehensive income (loss), unrealized gains on available-for-sale securities | 116 | (56) | 282 | 117 |
Other comprehensive income (loss), unrealized gains on cash flow hedges | (7) | 6 | (6) | 19 |
Other comprehensive income (loss) | 344 | 49 | 109 | 271 |
Ending balance - accumulated other comprehensive loss attributable to BHE shareholders, net | (385) | (385) | ||
Accumulated Other Comprehensive (Loss) Income, Net [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance - unrecognized amounts on retirement benefits | (490) | (559) | ||
Beginning balance - foreign currency translation adjustment | (412) | (98) | ||
Beginning balance - unrealized gains on available-for-sale securities | 390 | 524 | ||
Beginning balance - unrealized gains on cash flow hedges | 18 | 36 | ||
Beginning balance - accumulated other comprehensive loss attributable to BHE shareholders, net | (494) | (97) | ||
Other comprehensive income (loss), unrecognized amounts on retirement benefits | (6) | 4 | ||
Other comprehensive income (loss), foreign currency translation adjustment | (161) | 131 | ||
Other comprehensive income (loss), unrealized gains on available-for-sale securities | 282 | 117 | ||
Other comprehensive income (loss), unrealized gains on cash flow hedges | (6) | 19 | ||
Other comprehensive income (loss) | 109 | 271 | ||
Ending balance - unrecognized amounts on retirement benefits | (496) | (555) | (496) | (555) |
Ending balance - foreign currency translation adjustment | (573) | 33 | (573) | 33 |
Ending balance - unrealized gains on available-for-sale securities | 672 | 641 | 672 | 641 |
Ending balance - unrealized gains on cash flow hedges | 12 | 55 | 12 | 55 |
Ending balance - accumulated other comprehensive loss attributable to BHE shareholders, net | $ (385) | $ 174 | $ (385) | $ 174 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 4,448 | $ 4,103 | $ 8,669 | $ 8,352 | ||
Sales revenue from energy operations | 3,690 | 3,486 | 7,463 | 7,377 | ||
Real estate | 758 | 617 | 1,206 | 975 | ||
Depreciation and amortization - energy operations | 604 | 494 | 1,185 | 969 | ||
Depreciation and amortization | 610 | 502 | 1,197 | 984 | ||
Operating income | 1,007 | 900 | 1,937 | 1,850 | ||
Interest expense | 476 | 425 | 948 | 843 | ||
Capitalized interest | 22 | 22 | 51 | 51 | ||
Allowance for equity funds | 30 | 25 | 61 | 52 | ||
Interest and dividend income | 26 | 9 | 52 | 18 | ||
Other, net | 10 | 16 | 36 | 23 | ||
Income before income tax expense and equity income | 619 | 547 | 1,189 | 1,151 | ||
Assets | 83,356 | 83,356 | $ 82,304 | |||
PacifiCorp [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales revenue from energy operations | 1,269 | 1,243 | 2,519 | 2,531 | ||
Depreciation and amortization - energy operations | 196 | 183 | 390 | 366 | ||
Operating income | 327 | 343 | 600 | 635 | ||
Interest expense | 95 | 99 | 190 | 195 | ||
Assets | 23,530 | 23,530 | 23,466 | |||
MidAmerican Funding [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales revenue from energy operations | 797 | 775 | 1,748 | 2,005 | ||
Depreciation and amortization - energy operations | 99 | 86 | 199 | 170 | ||
Operating income | 122 | 51 | 229 | 204 | ||
Interest expense | 50 | 51 | 100 | 97 | ||
Assets | 15,672 | 15,672 | 15,368 | |||
NV Energy [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales revenue from energy operations | 835 | 795 | 1,541 | 1,433 | ||
Depreciation and amortization - energy operations | 103 | 95 | 204 | 187 | ||
Operating income | 178 | 179 | 299 | 286 | ||
Interest expense | 65 | 71 | 128 | 141 | ||
Assets | 14,457 | 14,457 | 14,454 | |||
Northern Powergrid [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales revenue from energy operations | 263 | 324 | 587 | 641 | ||
Depreciation and amortization - energy operations | 50 | 50 | 98 | 98 | ||
Operating income | 130 | 178 | 323 | 359 | ||
Interest expense | 36 | 38 | 71 | 76 | ||
Assets | 7,438 | 7,438 | 7,076 | |||
BHE Pipeline Group [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales revenue from energy operations | 208 | 226 | 540 | 612 | ||
Depreciation and amortization - energy operations | 50 | 50 | 100 | 98 | ||
Operating income | 56 | 29 | 256 | 259 | ||
Interest expense | 17 | 19 | 35 | 38 | ||
Assets | 4,896 | 4,896 | 4,968 | |||
BHE Transmission [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales revenue from energy operations | 150 | 0 | 275 | 0 | ||
Depreciation and amortization - energy operations | 53 | 0 | 91 | 0 | ||
Operating income | 58 | (2) | 104 | (4) | ||
Interest expense | 37 | 0 | 73 | 0 | ||
Assets | 8,005 | 8,005 | 7,992 | |||
BHE Renewables [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales revenue from energy operations | 190 | 145 | 314 | 214 | ||
Depreciation and amortization - energy operations | 56 | 32 | 105 | 53 | ||
Operating income | 66 | 80 | 72 | 109 | ||
Interest expense | 49 | 41 | 95 | 82 | ||
Assets | 5,712 | 5,712 | 6,123 | |||
HomeServices [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Real estate | 758 | 617 | 1,206 | 975 | ||
Depreciation and amortization | 6 | 8 | 12 | 15 | ||
Operating income | 85 | 51 | 83 | 39 | ||
Interest expense | 1 | 1 | 2 | 2 | ||
Assets | 2,053 | 2,053 | 1,629 | |||
BHE And Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales revenue from energy operations | [1] | (22) | (22) | (61) | (59) | |
Depreciation and amortization - energy operations | [1] | (3) | (2) | (2) | (3) | |
Operating income | [1] | (15) | (9) | (29) | (37) | |
Interest expense | [1] | 126 | 105 | 254 | 212 | |
Assets | [1] | 1,593 | 1,593 | $ 1,228 | ||
UNITED STATES | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 4,032 | 3,751 | 7,801 | 7,656 | ||
Income before income tax expense and equity income | 465 | 396 | 823 | 843 | ||
UNITED KINGDOM | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 263 | 324 | 587 | 639 | ||
Income before income tax expense and equity income | 102 | 142 | 266 | 285 | ||
CANADA | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 153 | 6 | 280 | 10 | ||
Income before income tax expense and equity income | 43 | (3) | 78 | (4) | ||
The Philippines and other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 0 | 22 | 1 | 47 | ||
Income before income tax expense and equity income | $ 9 | $ 12 | $ 22 | $ 27 | ||
[1] | The differences between the reportable segment amounts and the consolidated amounts, described as BHE and Other, relate to other corporate entities, corporate functions and intersegment eliminations. |
Segment Information - Goodwill
Segment Information - Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Roll Forward] | |
12/31/2014 | $ 9,343 |
Acquisitions | 31 |
Foreign currency translation | (111) |
Other | (13) |
6/30/2015 | 9,250 |
PacifiCorp [Member] | |
Goodwill [Roll Forward] | |
12/31/2014 | 1,129 |
Acquisitions | 0 |
Foreign currency translation | 0 |
Other | 0 |
6/30/2015 | 1,129 |
MidAmerican Funding [Member] | |
Goodwill [Roll Forward] | |
12/31/2014 | 2,102 |
Acquisitions | 0 |
Foreign currency translation | 0 |
Other | 0 |
6/30/2015 | 2,102 |
NV Energy [Member] | |
Goodwill [Roll Forward] | |
12/31/2014 | 2,369 |
Acquisitions | 0 |
Foreign currency translation | 0 |
Other | 0 |
6/30/2015 | 2,369 |
Northern Powergrid [Member] | |
Goodwill [Roll Forward] | |
12/31/2014 | 1,100 |
Acquisitions | 0 |
Foreign currency translation | 7 |
Other | 0 |
6/30/2015 | 1,107 |
BHE Pipeline Group [Member] | |
Goodwill [Roll Forward] | |
12/31/2014 | 127 |
Acquisitions | 0 |
Foreign currency translation | 0 |
Other | (13) |
6/30/2015 | 114 |
BHE Transmission [Member] | |
Goodwill [Roll Forward] | |
12/31/2014 | 1,657 |
Acquisitions | 31 |
Foreign currency translation | (118) |
Other | 0 |
6/30/2015 | 1,570 |
BHE Renewables [Member] | |
Goodwill [Roll Forward] | |
12/31/2014 | 95 |
Acquisitions | 0 |
Foreign currency translation | 0 |
Other | 0 |
6/30/2015 | 95 |
HomeServices [Member] | |
Goodwill [Roll Forward] | |
12/31/2014 | 761 |
Acquisitions | 0 |
Foreign currency translation | 0 |
Other | 0 |
6/30/2015 | 761 |
Other [Member] | |
Goodwill [Roll Forward] | |
12/31/2014 | 3 |
Acquisitions | 0 |
Foreign currency translation | 0 |
Other | 0 |
6/30/2015 | $ 3 |