Pension plans (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of net periodic pension expense

The components of net periodic pension expense for each of the three years ending December 31, 2014 are as follows (in millions).

	2014			2013			2012
Service cost	$	230		$	254		$	247
Interest cost		629			547			583
Expected return on plan assets		(772	)		(634	)		(610	)
Amortization of actuarial losses and other		102			225			220
Net periodic pension expense	$	189		$	392		$	440

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 BHE’s pension plans and all other pension plans for each of the two years ending December 31, 2014 are in the following tables (in millions). BHE’s pension plans cover employees of its various regulated subsidiaries. The costs associated with these regulated operations are generally recoverable through the regulated rate making process.

	2014									2013
	BHE			All other			Consolidated			BHE			All other			Consolidated
Benefit obligations
Accumulated benefit obligation at end of year	$	5,105		$	9,522		$	14,627		$	4,664		$	8,101		$	12,765
PBO at beginning of year	$	5,006		$	8,892		$	13,898		$	4,284		$	9,789		$	14,073
Service cost		60			170			230			46			208			254
Interest cost		226			403			629			172			375			547
Benefits paid		(310	)		(524	)		(834	)		(275	)		(505	)		(780	)
Business acquisitions		—			11			11			823			—			823
Actuarial (gains) or losses and other		416			1,537			1,953			(44	)		(975	)		(1,019	)
PBO at end of year	$	5,398		$	10,489		$	15,887		$	5,006		$	8,892		$	13,898
Plan assets
Plan assets at beginning of year	$	4,888		$	8,389		$	13,277		$	3,651		$	6,785		$	10,436
Employer contributions		126			122			248			150			274			424
Benefits paid		(310	)		(524	)		(834	)		(275	)		(505	)		(780	)
Actual return on plan assets		525			338			863			497			1,849			2,346
Business acquisitions		—			1			1			818			—			818
Other		(143	)		(46	)		(189	)		47			(14	)		33
Plan assets at end of year	$	5,086		$	8,280		$	13,366		$	4,888		$	8,389		$	13,277
Net funded status – net liability	$	312		$	2,209		$	2,521		$	118		$	503		$	621

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.

	2014			2013
Applicable to pension benefit obligations:
Discount rate		3.8	%		4.6	%
Expected long-term rate of return on plan assets		6.7			6.7
Rate of compensation increase		3.4			3.5
Discount rate applicable to net periodic pension expense		4.6			4.1

Schedule of net funded status of pension plans

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

	December 31,
	2014			2013
Accounts payable, accruals and other liabilities	$	2,550		$	1,287
Losses and loss adjustment expenses		332			309
Other assets		(361	)		(975	)
	$	2,521		$	621

Schedule of fair value measurements by major categories of plan assets

Fair value measurements of plan assets as of December 31, 2014 and 2013 follow (in millions).

	Total Fair Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2014
Cash and equivalents	$	482	$	250	$	232	$	—
Equity securities		7,950		7,739		211		—
Government obligations		811		701		110		—
Other fixed maturity securities		908		67		841		—
Investment funds and other		3,215		595		2,287		333
	$	13,366	$	9,352	$	3,681	$	333
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

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, 2014 follows (in millions).

	2014			2013
Balance at beginning of year	$	86		$	(2,516	)
Amount included in net periodic pension expense		55			167
Gains (losses) current period and other		(1,755	)		2,435
Balance at end of year	$	(1,614	)	$	86