Pension plans (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of net periodic pension expense

The components of our net periodic pension expense for each of the three years ending December 31, 2017 were as follows (in millions).


	2017			2016			2015
Service cost	$	273		$	282		$	266
Interest cost		635			691			591
Expected return on plan assets		(939	)		(908	)		(782	)
Amortization of actuarial losses and other		157			148			179

Net periodic pension expense	$	126		$	213		$	254

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, 2017 are in the following tables (in millions). The costs of pension plans covering employees of certain regulated subsidiaries of BHE are generally recoverable through the regulated rate making process.


	2017									2016
	BHE			All other			Consolidated			BHE			All other			Consolidated
Benefit obligations
Accumulated benefit obligation end of year	$	4,920		$	12,604		$	17,524		$	4,787		$	11,912		$	16,699

PBO beginning of year	$	5,077		$	12,673		$	17,750		$	5,076		$	10,183		$	15,259
Service cost		47			226			273			49			233			282
Interest cost		174			461			635			198			493			691
Benefits paid		(271	)		(626	)		(897	)		(309	)		(705	)		(1,014	)
Business acquisitions		—			—			—			—			2,684			2,684
Actuarial (gains) or losses and other		180			883			1,063			63			(215	)		(152	)

PBO end of year	$	5,207		$	13,617		$	18,824		$	5,077		$	12,673		$	17,750


Plan assets
Plan assets beginning of year	$	4,694		$	10,703		$	15,397		$	4,765		$	8,066		$	12,831
Employer contributions		122			159			281			133			214			347
Benefits paid		(271	)		(626	)		(897	)		(309	)		(705	)		(1,014	)
Actual return on plan assets		535			1,601			2,136			512			1,083			1,595
Business acquisitions		—			—			—			—			2,314			2,314
Other		49			48			97			(407	)		(269	)		(676	)

Plan assets end of year	$	5,129		$	11,885		$	17,014		$	4,694		$	10,703		$	15,397

Funded status – net liability	$	78		$	1,732		$	1,810		$	383		$	1,970		$	2,353

Schedule of weighted average interest rate assumptions

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


	2017		2016		2015
Applicable to pension benefit obligations:
Discount rate		3.3%		3.8%		4.1%
Expected long-term rate of return on plan assets		6.4		6.1		6.5
Rate of compensation increase		2.8		3.0		3.4
Discount rate applicable to net periodic pension expense		3.9		4.2		3.8

Schedule of fair value measurements by major categories of plan assets

Fair value measurements of plan assets as of December 31, 2017 and 2016 follow (in millions).


	Fair Value								Investment funds and partnerships at net asset value
	Total		Level 1		Level 2		Level 3		Investment funds and partnerships at net asset value
December 31, 2017
Cash and equivalents	$	738	$	594	$	144	$	—		$ —
Equity securities		9,824		9,641		23		160		—
Government obligations		1,536		1,497		39		—		—
Other fixed maturity securities		799		148		619		32		—
Investment funds and other		4,117		150		1,501		274		2,192

	$	17,014	$	12,030	$	2,326	$	466		$2,192

December 31, 2016
Cash and equivalents	$	847	$	637	$	210	$	—		$ —
Equity securities		8,645		8,476		27		142		—
Government obligations		1,291		1,076		215		—		—
Other fixed maturity securities		770		144		595		31		—
Investment funds and other		3,844		233		1,434		153		2,024

	$	15,397	$	10,566	$	2,481	$	326		$2,024

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, 2017 follows (in millions).


	2017			2016
Balance beginning of year	$	(839	)	$	(1,193	)
Amount included in net periodic pension expense		155			104
Actuarial gains and other		70			250

Balance end of year	$	(614	)	$	(839	)