Pension plans (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of net periodic pension expense

The components of our net periodic pension expense for each of the three years ending December 31, 2018 were as follows (in millions).


	2018			2017			2016
Service cost	$	271		$	273		$	282
Interest cost		593			635			691
Expected return on plan assets		(988	)		(939	)		(908	)
Amortization of actuarial losses and other		188			157			148

Net periodic pension expense	$	64		$	126		$	213

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, 2018 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.


	2018								2017
	BHE			All other			Consolidated		BHE			All other			Consolidated
Benefit obligations
Accumulated benefit obligation end of year	$	4,346		$	11,540		$	15,886	$	4,920		$	12,604		$	17,524

PBO beginning of year	$	5,207		$	13,617		$	18,824	$	5,077		$	12,673		$	17,750
Service cost		40			231			271		47			226			273
Interest cost		161			432			593		174			461			635
Benefits paid		(208	)		(633	)		(841)		(271	)		(626	)		(897	)
Settlements		(301	)		(133	)		(434)		(146	)		(95	)		(241	)
Actuarial (gains) or losses and other		(348	)		(1,143	)		(1,491)		326			978			1,304

PBO end of year	$	4,551		$	12,371		$	16,922	$	5,207		$	13,617		$	18,824

Plan assets
Plan assets beginning of year	$	5,129		$	11,885		$	17,014	$	4,694		$	10,703		$	15,397
Employer contributions		98			495			593		122			159			281
Benefits paid		(208	)		(633	)		(841)		(271	)		(626	)		(897	)
Actual return on plan assets		(191	)		(949	)		(1,140)		535			1,601			2,136
Settlements		(324	)		(132	)		(456)		(159	)		(76	)		(235	)
Other		(119	)		(92	)		(211)		208			124			332

Plan assets end of year	$	4,385		$	10,574		$	14,959	$	5,129		$	11,885		$	17,014

Funded status – net liability	$	166		$	1,797		$	1,963	$	78		$	1,732		$	1,810

Schedule of weighted average assumptions

Weighted average assumptions used in determining PBO and net periodic pension expense were as follows.


	2018		2017		2016
Discount rate applicable to pension benefit obligations		3.9%		3.3%		3.8%
Expected long-term rate of return on plan assets		6.4		6.4		6.1
Rate of compensation increase		2.6		2.8		3.0
Discount rate applicable to net periodic pension expense		3.4		3.9		4.2

Schedule of fair value measurements by major categories of plan assets

Fair value measurements of plan assets as of December 31, 2018 and 2017 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, 2018
Cash and cash equivalents	$	1,328	$	1,197	$	131	$	—	$	—
Equity securities		7,671		7,499		22		150		—
Government obligations		1,727		1,654		73		—		—
Other fixed maturity securities		836		172		631		33		—
Investment funds and other		3,397		170		1,042		273		1,912

	$	14,959	$	10,692	$	1,899	$	456	$	1,912

December 31, 2017
Cash and cash 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

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, 2018 follows (in millions).


	2018			2017
Balance beginning of year	$	(614	)	$	(839	)
Amount included in net periodic pension expense		116			155
Actuarial gains (losses) and other		(686	)		70

Balance end of year	$	(1,184	)	$	(614	)