XML 79 R38.htm IDEA: XBRL DOCUMENT v3.21.1
Investments and Restricted Cash and Cash Equivalents and Investments
 3 Months Ended
Mar. 31, 2021
Restricted Cash and Cash Equivalents Items [Line Items]  
Investments and Restricted Cash and Cash Equivalents and Investments Investments and Restricted Cash and Cash Equivalents and Investments
Investments and restricted cash and cash equivalents and investments consists of the following (in millions):
 As of
 March 31,December 31,
20212020
Investments:
BYD Company Limited common stock$4,773 $5,897 
Rabbi trusts452 440 
Other288 263 
Total investments5,513 6,600 
   
Equity method investments:
BHE Renewables tax equity investments5,399 5,626 
Iroquois Gas Transmission System, L.P.586 580 
Electric Transmission Texas, LLC581 594 
JAX LNG, LLC80 75 
Bridger Coal Company68 74 
Other113 118 
Total equity method investments6,827 7,067 
Restricted cash and cash equivalents and investments:  
Quad Cities Station nuclear decommissioning trust funds697 676 
Other restricted cash and cash equivalents130 155 
Total restricted cash and cash equivalents and investments827 831 
   
Total investments and restricted cash and cash equivalents and investments$13,167 $14,498 
Reflected as:
Current assets$157 $178 
Noncurrent assets13,010 14,320 
Total investments and restricted cash and cash equivalents and investments$13,167 $14,498 

Investments

(Losses) gains on marketable securities, net recognized during the period consists of the following (in millions):
Three-Month Periods
Ended March 31,
20212020
Unrealized (losses) gains recognized on marketable securities still held at the reporting date$(1,119)$25 
Net gains recognized on marketable securities sold during the period1 2 
(Losses) gains on marketable securities, net$(1,118)$27 
Equity Method Investments

The Company has invested in projects sponsored by third parties, commonly referred to as tax equity investments. Once a project achieves commercial operation, the Company enters into a partnership agreement with the project sponsor that directs and allocates the operating profits and tax benefits from the project. Certain of the Company's tax equity investments are located in Texas and have physical settlement hedge obligations that were negatively impacted due to production shortfalls during periods of extreme market pricing volatility as a result of the February 2021 polar vortex weather event. The Company recognized pre-tax equity losses of $218 million, or after-tax losses of $23 million inclusive of production tax credits ("PTCs") of $148 million and other income tax benefits of $47 million, during the three-month period ended March 31, 2021, on its tax equity investments, largely due to the February 2021 polar vortex weather event. The losses for the impacted tax equity investments were based upon the terms of each partnership agreement, as amended, and are subject to change as project-by-project discussions are ongoing among the Company and the respective hedge provider and project sponsor. As of March 31, 2021, the carrying value of the impacted tax equity investments totaled $2.8 billion.

Cash and Cash Equivalents and Restricted Cash and Cash Equivalents

Cash equivalents consist of funds invested in money market mutual funds, United States Treasury Bills and other investments with a maturity of three months or less when purchased. Cash and cash equivalents exclude amounts where availability is restricted by legal requirements, loan agreements or other contractual provisions. Restricted cash and cash equivalents as of March 31, 2021 and December 31, 2020, consist substantially of funds restricted for the purpose of constructing solid waste facilities under tax-exempt bond obligation agreements and debt service obligations for certain of the Company's nonregulated renewable energy projects. A reconciliation of cash and cash equivalents and restricted cash and cash equivalents as of March 31, 2021 and December 31, 2020, as presented in the Consolidated Statements of Cash Flows is outlined below and disaggregated by the line items in which they appear on the Consolidated Balance Sheets (in millions):
As of
March 31,December 31,
20212020
Cash and cash equivalents$1,276 $1,290 
Restricted cash and cash equivalents117 140 
Investments and restricted cash and cash equivalents and investments13 15 
Total cash and cash equivalents and restricted cash and cash equivalents$1,406 $1,445 
Eastern Energy Gas Holdings, LLC [Member]  
Restricted Cash and Cash Equivalents Items [Line Items]  
Investments and Restricted Cash and Cash Equivalents and Investments Investments and Restricted Cash and Cash Equivalents
Investments and restricted cash and cash equivalents consists of the following (in millions):
As of
March 31,December 31,
20212020
Investments:
Investment funds$12 $— 
Equity method investments:
Iroquois250 244 
Total investments262 244 
Restricted cash and cash equivalents:
Customer deposits9 13 
Total restricted cash and cash equivalents9 13 
Total investments and restricted cash and cash equivalents$271 $257 
Reflected as:
Current assets$9 $13 
Noncurrent assets262 244 
Total investments and restricted cash and cash equivalents$271 $257 
Equity Method Investments

Eastern Energy Gas, through a subsidiary, owns 50% of Iroquois, which owns and operates an interstate natural gas pipeline located in the states of New York and Connecticut. Prior to the GT&S Transaction, Eastern Energy Gas, through the Questar Pipeline Group, owned 50% of White River Hub, which owns and operates a natural gas pipeline in northwest Colorado.

As of March 31, 2021 and December 31, 2020, the carrying amount of Eastern Energy Gas' investments exceeded its share of underlying equity in net assets by $130 million. The difference reflects equity method goodwill and is not being amortized. Eastern Energy Gas received distributions from its investments of $10 million and $15 million for the three-month periods ended March 31, 2021 and 2020, respectively.
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents

Cash equivalents consist of funds invested in money market mutual funds, United States Treasury Bills and other investments with a maturity of three months or less when purchased. Cash and cash equivalents exclude amounts where availability is restricted by legal requirements, loan agreements or other contractual provisions. Restricted cash and cash equivalents as of March 31, 2021 and December 31, 2020 consist substantially of customer deposits as allowed under the FERC gas tariffs. A reconciliation of cash and cash equivalents and restricted cash and cash equivalents as of March 31, 2021 and December 31, 2020, as presented in the Consolidated Statements of Cash Flows is outlined below and disaggregated by the line items in which they appear on the Consolidated Balance Sheets (in millions):
As of
March 31,December 31,
20212020
Cash and cash equivalents$106 $35 
Restricted cash and cash equivalents9 13 
Total cash and cash equivalents and restricted cash and cash equivalents$115 $48