Pension plans (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of net periodic pension expense

The components of net periodic pension expense for each of the three years ending December 31, 2013 are as follows (in millions).

	2013			2012			2011
Service cost	$	254		$	247		$	191
Interest cost		547			583			568
Expected return on plan assets		(634	)		(610	)		(579	)
Amortization of actuarial losses and other		225			220			102
Net pension expense	$	392		$	440		$	282

Schedule of changes in projected benefit obligations, changes in plan assets and net funded status

Reconciliations of the changes in Plan Assets and PBOs related to MidAmerican’s pension plans and all other pension plans for each of the two years ending December 31, 2013 are in the following tables (in millions).

	2013									2012
	MidAmerican			All other			Consolidated			MidAmerican			All other			Consolidated
Benefit Obligations
Accumulated benefit obligation at end of year	$	4,664		$	8,101		$	12,765		$	4,037		$	8,878		$	12,915
PBO at beginning of year	$	4,284		$	9,789		$	14,073		$	3,863		$	9,129		$	12,992
Service cost		46			208			254			44			203			247
Interest cost		172			375			547			183			400			583
Benefits paid		(275	)		(505	)		(780	)		(219	)		(660	)		(879	)
Business acquisitions		823			—			823			—			8			8
Actuarial (gains) or losses and other		(44	)		(975	)		(1,019	)		413			709			1,122
PBO at end of year	$	5,006		$	8,892		$	13,898		$	4,284		$	9,789		$	14,073
Plan Assets
Plan assets at beginning of year	$	3,651		$	6,785		$	10,436		$	3,245		$	5,905		$	9,150
Employer contributions		150			274			424			193			456			649
Benefits paid		(275	)		(505	)		(780	)		(219	)		(660	)		(879	)
Actual return on plan assets		497			1,849			2,346			341			1,088			1,429
Business acquisitions		818			—			818			—			6			6
Other		47			(14	)		33			91			(10	)		81
Plan assets at end of year	$	4,888		$	8,389		$	13,277		$	3,651		$	6,785		$	10,436
Net funded status – net liability	$	118		$	503		$	621		$	633		$	3,004		$	3,637

Schedule of net funded status of pension plans

The net funded status is recognized in the Consolidated Balance Sheets as follows (in millions).

	December 31,
	2013			2012
Accounts payable, accruals and other liabilities	$	1,287		$	3,441
Losses and loss adjustment expenses		309			256
Other assets		(975	)		(60	)
	$	621		$	3,637

Schedule of fair value measurements by major categories of plan assets

Fair value measurements of Plan Assets as of December 31, 2013 and 2012 follow (in millions).

	Total Fair Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2013
Cash and equivalents	$	595	$	355	$	240	$	—
Equity securities		7,844		7,684		160		—
Government obligations		891		607		284		—
Other fixed maturity securities		901		81		820		—
Investment funds and other		3,046		577		2,156		313
	$	13,277	$	9,304	$	3,660	$	313
December 31, 2012
Cash and equivalents	$	900	$	345	$	555	$	—
Equity securities		5,444		5,211		233		—
Government obligations		899		529		370		—
Other fixed maturity securities		790		92		698		—
Investment funds and other		2,403		419		1,652		332
	$	10,436	$	6,596	$	3,508	$	332

Schedule of pension plan amounts recognized In accumulated other comprehensive income

A reconciliation of the pre-tax accumulated other comprehensive income (loss) related to defined benefit pension plans for each of the two years ending December 31, 2013 follows (in millions).

	2013			2012
Balance at beginning of year	$	(2,516	)	$	(2,521	)
Amount included in net periodic pension expense		167			130
Gains (losses) current period and other		2,435			(125	)
Balance at end of year	$	86		$	(2,516	)

Schedule of weighted average interest rate assumptions

Weighted average interest rate assumptions used in determining projected benefit obligations and net periodic pension expense were as follows.

	2013			2012
Applicable to pension benefit obligations:
Discount rate		4.6	%		4.0	%
Expected long-term rate of return on plan assets		6.7			6.6
Rate of compensation increase		3.5			3.6
Discount rate applicable to pension expense		4.1			4.5