Schedule I MEHC Condensed Financial Statements

12 Months Ended

Dec. 31, 2011

Schedule I Parent Company Only Financial Statements [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Schedule I

MidAmerican Energy Holdings Company

Parent Company Only

Condensed Balance Sheets

As of December 31, 2011 and 2010

(Amounts in millions)

	2011			2010
ASSETS
Current assets:
Cash and cash equivalents	$	13		$	18
Accounts receivable	3			25
Accounts receivable - affiliate	—			10
Income taxes receivable	127			—
Other current assets	13			13
Total current assets	156			66
Investments in subsidiaries	19,483			18,841
Other investments	588			1,276
Goodwill	1,289			1,289
Other assets	548			195
Total assets	$	22,064		$	21,667
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and other current liabilities	$	163		$	140
Short-term debt	108			284
Current portion of senior debt	742			—
Current portion of subordinated debt	22			143
Total current liabilities	1,035			567
Senior debt	4,621			5,371
Subordinated debt	—			172
Notes payable - affiliate	1,963			1,841
Other long-term liabilities	346			478
Total liabilities	7,965			8,429
Equity:
MEHC shareholders' equity:
Common stock - 115 shares authorized, no par value, 75 shares issued and outstanding	—			—
Additional paid-in capital	5,423			5,427
Retained earnings	9,310			7,979
Accumulated other comprehensive loss, net	(641		)	(174		)
Total MEHC shareholders' equity	14,092			13,232
Noncontrolling interest	7			6
Total equity	14,099			13,238
Total liabilities and equity	$	22,064		$	21,667

The accompanying notes are an integral part of this financial statement schedule.

Schedule I

MidAmerican Energy Holdings Company    

Parent Company Only (continued)

Condensed Statements of Operations

For the three years ended December 31, 2011

(Amounts in millions)

	2011			2010			2009
Operating costs and expenses:
General and administration	35			42			172
Depreciation and amortization	—			—			1
Total costs and expenses	35			42			173
Operating loss	(35		)	(42		)	(173		)
Other income (expense):
Interest expense	(396		)	(425		)	(449		)
Interest and dividend income	2			12			5
Other, net	(40		)	11			10
Total other income (expense)	(434		)	(402		)	(434		)
Loss before income tax benefit and equity income	(469		)	(444		)	(607		)
Income tax benefit	(194		)	(220		)	(253		)
Equity income	1,607			1,462			1,511
Net income	1,332			1,238			1,157
Net income attributable to noncontrolling interest	1			—			—
Net income attributable to MEHC	$	1,331		$	1,238		$	1,157

The accompanying notes are an integral part of this financial statement schedule.

Schedule I

MidAmerican Energy Holdings Company

Parent Company Only (continued)

Condensed Statements of Cash Flows

For the three years ended December 31, 2011

(Amounts in millions)

	2011			2010			2009
Cash flows from operating activities	$	792		$	(47	)	$	285
Cash flows from investing activities:
Investments in subsidiaries	(157		)	(214		)	(202		)
Notes receivable from affiliate, net	(217		)	240			(195		)
Purchases of available-for-sale securities	(38		)	(15		)	(253		)
Proceeds from sale of available-for-sale securities	33			20			8
Other, net	(6		)	—			(1		)
Net cash flows from investing activities	(385		)	31			(643		)
Cash flows from financing activities:
Proceeds from senior debt	—			—			250
Repayments of subordinated debt	(334		)	(281		)	(734		)
Net (repayments of) proceeds from short-term debt	(176		)	234			(166		)
Notes payable to affiliate, net	106			120			1,144
Net purchases of common stock	—			(56		)	(123		)
Other, net	(8		)	—			(2		)
Net cash flows from financing activities	(412		)	17			369
Net change in cash and cash equivalents	(5		)	1			11
Cash and cash equivalents at beginning of year	18			17			6
Cash and cash equivalents at end of year	$	13		$	18		$	17

The accompanying notes are an integral part of this financial statement schedule.

Schedule I

MIDAMERICAN ENERGY HOLDINGS COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

Incorporated by reference are MEHC and Subsidiaries Consolidated Statements of Changes in Equity for the three years ended December 31, 2011 in Part II, Item 8.

Basis of Presentation - The condensed financial information of MidAmerican Energy Holdings Company's ("MEHC") investments in subsidiaries are presented under the equity method of accounting. Under this method, the assets and liabilities of subsidiaries are not consolidated. The investments in subsidiaries are recorded in the Condensed Balance Sheets. The income from operations of subsidiaries is reported on a net basis as equity income in the Condensed Statements of Operations.

Other investments - MEHC's investment in BYD Company Limited ("BYD") common stock is accounted for as an available-for-sale security with changes in fair value recognized in AOCI. As of December 31, 2011 and 2010, the fair value of MEHC's investment in BYD common stock was $488 million and $1.182 billion, respectively, which resulted in a pre-tax unrealized gain of $256 million and $950 million as of December 31, 2011 and 2010, respectively.

Dividends and distributions from subsidiaries - Cash dividends paid to MEHC by its subsidiaries for the years ended December 31, 2011, 2010 and 2009 were $1.088 billion, $433 million and $495 million, respectively. In January and February 2012, MEHC received cash dividends from its subsidiaries totaling $252 million.

General and administration - In March 2009, 703,329 common stock options were exercised having an exercise price of $35.05 per share, or $25 million. Also in March 2009, MEHC purchased the shares issued from the options exercised for $148 million. As a result, MEHC recognized $125 million of stock-based compensation expense, including MEHC's share of payroll taxes, for the year ended December 31, 2009.

Guarantees

MEHC has issued a limited guarantee of a specified portion of the final scheduled principal payment on December 15, 2019 on the Cordova Funding Corporation senior secured bonds in an amount up to a maximum of $37 million.

See the notes to the consolidated MEHC financial statements in Part II, Item 8 for other disclosures.