Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Components of Income Tax Expense (Benefit)

Income tax (benefit) expense consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current:
Federal	$	(1,463)	$	(1,701)	$	(1,537)
State	(65)		(177)		(121)
Foreign	79		100		86
	(1,449)		(1,778)		(1,572)
Deferred:
Federal	(408)		1,037		1,438
State	(49)		(476)		424
Foreign	(5)		89		21
	(462)		650		1,883
Investment tax credits	(5)		(4)		(3)
Total	$	(1,916)	$	(1,132)	$	308

Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax (benefit) expense is as follows for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
Income tax credits	(124)		(27)		(16)
Effects of ratemaking	(16)		(4)		(3)
State income tax, net of federal income tax benefit	(6)		(10)		3
Non-controlling interest	(6)		(2)		—
Income tax effect of foreign income	(4)		1		—
Equity loss	(3)		(1)		—
Other, net	2		1		(1)
Effective income tax rate	(136)	%	(21)	%	4	%

Components of Deferred Tax Assets and Liabilities

The net deferred income tax liability consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Regulatory liabilities	$	1,323	$	1,349
Federal, state and foreign carryforwards	812		820
AROs	283		304
Other	741		686
Total deferred income tax assets	3,159		3,159
Valuation allowances	(187)		(164)
Total deferred income tax assets, net	2,972		2,995
Deferred income tax liabilities:
Property-related items	(12,244)		(11,814)
Investments	(1,998)		(2,877)
Regulatory assets	(898)		(764)
Other	(510)		(478)
Total deferred income tax liabilities	(15,650)		(15,933)
Net deferred income tax liability	$	(12,678)	$	(12,938)

Summary of Operating Loss Carryforwards

The following table provides, without regard to valuation allowances, the Company's net operating loss and tax credit carryforwards and expiration dates as of December 31, 2022 (in millions):

	Federal		State		Foreign		Total
Net operating loss carryforwards(1)	$	192	$	9,653	$	725	$	10,570
Deferred income taxes on net operating loss carryforwards	41		562		166		769
Expiration dates	2023 - indefinite		2023 - indefinite		2028 - 2042
Tax credits	$	15	$	28	$	—	$	43
Expiration dates	2023 - 2034		2023 - indefinite

(1)The federal net operating loss carryforwards relate principally to net operating loss carryforwards of subsidiaries that are tax residents in both the U.S. and the United Kingdom. The federal net operating loss carryforwards were generated prior to Berkshire Hathaway Inc.'s ownership and began to expire in 2022.

Net Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balances of the Company's net unrecognized tax benefits is as follows for the years ended December 31 (in millions):

	2022		2021
Beginning balance	$	97	$	153
Additions based on tax positions related to the current year	15		24
Additions for tax positions of prior years	—		13
Reductions based on tax positions related to the current year	(12)		(19)
Reductions for tax positions of prior years	(23)		(83)
Settlements	—		(1)
Interest and penalties	(9)		10
Ending balance	$	68	$	97

PAC

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Components of Income Tax Expense (Benefit)

Income tax (benefit) expense consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current:
Federal	$	(216)	$	(150)	$	19
State	(3)		7		30
Total	(219)		(143)		49
Deferred:
Federal	90		26		(124)
State	71		40		1
Total	161		66		(123)
Investment tax credits	(4)		(2)		(1)
Total income tax (benefit) expense	$	(62)	$	(79)	$	(75)

Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense is as follows for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
State income taxes, net of federal income tax benefit	3		3		3
Effects of ratemaking	(12)		(14)		(22)
Federal income tax credits	(22)		(20)		(13)
Valuation allowance	2		—		—
Other	1		—		—
Effective income tax rate	(7)	%	(10)	%	(11)	%

Components of Deferred Tax Assets and Liabilities

The net deferred income tax liability consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Regulatory liabilities	$	724	$	682
Employee benefits	59		68
State carryforwards	73		73
Loss contingencies	107		63
Asset retirement obligations	79		73
Other	80		88
Total deferred income tax assets	1,122		1,047
Valuation allowances	(35)		(15)
Total deferred income tax assets, net	1,087		1,032
Deferred income tax liabilities:
Property, plant and equipment	(3,612)		(3,468)
Regulatory assets	(462)		(332)
Other	(165)		(79)
Total deferred income tax liabilities	(4,239)		(3,879)
Net deferred income tax liability	$	(3,152)	$	(2,847)

Summary of Operating Loss Carryforwards

The following table provides, without regard to valuation allowances, PacifiCorp's net operating loss and tax credit carryforwards and expiration dates as of December 31, 2022 (in millions):

	State
Net operating loss carryforwards	$	1,159
Deferred income taxes on net operating loss carryforwards	$	53
Expiration dates	2023 - indefinite
Tax credit carryforwards	$	20
Expiration dates	2023 - indefinite

MEC

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Components of Income Tax Expense (Benefit)

MidAmerican Energy's income tax benefit consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current:
Federal	$	(769)	$	(736)	$	(684)
State	(34)		(92)		(94)
	(803)		(828)		(778)
Deferred:
Federal	77		189		201
State	(43)		(35)		8
	34		154		209
Investment tax credits	(1)		(1)		(1)
Total	$	(770)	$	(675)	$	(570)

Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory income tax rate to MidAmerican Energy's effective income tax rate applicable to income before income tax benefit is as follows for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
Income tax credits	(372)		(262)		(199)
State income tax, net of federal income tax benefit	(32)		(46)		(27)
Effects of ratemaking	(23)		(20)		(17)
Other, net	3		(1)		(1)
Effective income tax rate	(403)	%	(308)	%	(223)	%

Components of Deferred Tax Assets and Liabilities

MidAmerican Energy's net deferred income tax liability consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Regulatory liabilities	$	194	$	240
Asset retirement obligations	191		220
Revenue sharing	87		33
State carryforwards	61		55
Employee benefits	37		26
Other	24		(3)
Total deferred income tax assets	594		571
Valuation allowances	(2)		(1)
Total deferred income tax assets, net	592		570
Deferred income tax liabilities:
Depreciable property	(3,895)		(3,843)
Regulatory assets	(128)		(112)
Other	(2)		(4)
Total deferred income tax liabilities	(4,025)		(3,959)
Net deferred income tax liability	$	(3,433)	$	(3,389)

Net Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balances of MidAmerican Energy's net unrecognized tax benefits is as follows for the years ended December 31 (in millions):

	2022		2021
Beginning balance	$	13	$	8
Additions based on tax positions related to the current year	15		16
Reductions based on tax positions related to the current year	(12)		(11)
Ending balance	$	16	$	13

MidAmerican Funding, LLC

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Components of Income Tax Expense (Benefit)

MidAmerican Funding's income tax benefit consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current:
Federal	$	(773)	$	(739)	$	(689)
State	(36)		(94)		(96)
	(809)		(833)		(785)
Deferred:
Federal	77		189		204
State	(43)		(35)		8
	34		154		212
Investment tax credits	(1)		(1)		(1)
Total	$	(776)	$	(680)	$	(574)

Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory income tax rate to MidAmerican Funding's effective income tax rate applicable to income before income tax benefit is as follows for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
Income tax credits	(416)		(283)		(209)
State income tax, net of federal income tax benefit	(36)		(50)		(29)
Effects of ratemaking	(26)		(21)		(17)
Other, net	3		(2)		(1)
Effective income tax rate	(454)	%	(335)	%	(235)	%

Components of Deferred Tax Assets and Liabilities

MidAmerican Funding's net deferred income tax liability consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Regulatory liabilities	$	194	$	240
Asset retirement obligations	192		220
Revenue sharing	87		33
State carryforwards	61		55
Employee benefits	37		26
Other	24		(3)
Total deferred income tax assets	595		571
Valuation allowances	(2)		(1)
Total deferred income tax assets, net	593		570
Deferred income tax liabilities:
Depreciable property	(3,895)		(3,843)
Regulatory assets	(128)		(112)
Other	(1)		(2)
Total deferred income tax liabilities	(4,024)		(3,957)
Net deferred income tax liability	$	(3,431)	$	(3,387)

Net Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balances of MidAmerican Funding's net unrecognized tax benefits is as follows for the years ended December 31 (in millions):

	2022		2021
Beginning balance	$	13	$	8
Additions based on tax positions related to the current year	15		16
Reductions based on tax positions related to the current year	(12)		(11)
Ending balance	$	16	$	13

NPC

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Components of Income Tax Expense (Benefit)

Income tax expense consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current – Federal	$	(13)	$	37	$	57
Deferred – Federal	49		—		(10)
Total income tax expense	$	36	$	37	$	47

Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense is as follows for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
Effects of ratemaking	(11)		(11)		(8)
Other	1		1		1
Effective income tax rate	11	%	11	%	14	%

Components of Deferred Tax Assets and Liabilities

The net deferred income tax liability consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Regulatory liabilities	$	186	$	195
Operating and finance leases	68		73
Customer advances	27		25
Unamortized contract value	20		25
Other	9		8
Total deferred income tax assets	310		326
Deferred income tax liabilities:
Property related items	(821)		(800)
Regulatory assets	(273)		(204)
Operating and finance leases	(65)		(70)
Other	(26)		(34)
Total deferred income tax liabilities	(1,185)		(1,108)
Net deferred income tax liability	$	(875)	$	(782)

SPPC

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Components of Income Tax Expense (Benefit)

Income tax expense consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current – Federal	$	(12)	$	5	$	3
Deferred – Federal	31		13		12
Total income tax expense	$	19	$	18	$	15

Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory income rate to the effective income tax rate applicable to income before income tax expense is as follows for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
Effects of ratemaking	(7)		(8)		(9)
Effective income tax rate	14	%	13	%	12	%

Components of Deferred Tax Assets and Liabilities

The net deferred income tax liability consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Regulatory liabilities	$	63	$	64
Operating and finance leases	26		27
Customer advances	17		14
Unamortized contract value	6		8
Other	6		6
Total deferred income tax assets	118		119
Deferred income tax liabilities:
Property related items	(387)		(379)
Regulatory assets	(135)		(94)
Operating and finance leases	(25)		(27)
Other	(16)		(21)
Total deferred income tax liabilities	(563)		(521)
Net deferred income tax liability	$	(445)	$	(402)

EEGH

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Components of Income Tax Expense (Benefit)

Income tax expense (benefit) consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current:
Federal	$	12	$	(47)	$	(20)
State	29		(21)		1
	41		(68)		(19)
Deferred:
Federal	88		129		23
State	38		56		(28)
	126		185		(5)
Total	$	167	$	117	$	(24)

Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
State income tax, net of federal income tax benefit	6		3		(13)
Equity interest	2		1		4
Effects of ratemaking	(1)		1		(2)
Change in tax status	—		—		(9)
AFUDC-equity	—		—		(1)
Noncontrolling interest	(10)		(11)		(16)
Write-off of regulatory assets	—		—		3
Other, net	—		1		1
Effective income tax rate	18	%	16	%	(12)	%

Components of Deferred Tax Assets and Liabilities

The net deferred income tax liability consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Federal and state carryforwards	$	23	$	7
Employee benefits	22		33
Intangibles	112		150
Derivatives and hedges	16		16
Other	7		9
Total deferred income tax assets	180		215
Deferred income tax liabilities:
Property related items	(214)		(129)
Partnership investments	(51)		(49)
Debt exchange	(53)		(60)
Deferred state income taxes	(4)		(16)
Other	(12)		(16)
Total deferred income tax liabilities	(334)		(270)
Net deferred income tax liability(1)	$	(154)	$	(55)

(1)Net deferred income tax liability, as of both December 31, 2022 and 2021, is presented in other assets and other long-term liabilities in the Consolidated Balance Sheet.

EGTS

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Components of Income Tax Expense (Benefit)

Income tax expense (benefit) consists of the following for the years ended December 31 (in millions):

	2022		2021		2020
Current:
Federal	$	5	$	(22)	$	48
State	12		(10)		6
	17		(32)		54
Deferred:
Federal	64		67		(93)
State	28		26		(28)
	92		93		(121)
Total	$	109	$	61	$	(67)

Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income (loss) before income tax expense (benefit) is as follows for the years ended December 31:

	2022		2021		2020
Federal statutory income tax rate	21	%	21	%	21	%
State income tax, net of federal income tax benefit	9		8		7
Effects of ratemaking	—		—		2
AFUDC-equity	—		—		1
Write-off of regulatory assets	—		—		(3)
Other, net	(1)		(1)		(1)
Effective income tax rate	29	%	28	%	27	%

Components of Deferred Tax Assets and Liabilities

The net deferred income tax asset consists of the following as of December 31 (in millions):

	2022		2021
Deferred income tax assets:
Federal and state carryforwards	$	6	$	—
Employee benefits	22		31
Intangibles and goodwill	265		298
Derivatives and hedges	11		12
Other	4		4
Total deferred income tax assets	308		345
Deferred income tax liabilities:
Property related items	(146)		(77)
Debt exchange	(53)		(60)
Employee benefits	(4)		(9)
Total deferred income tax liabilities	(203)		(146)
Net deferred income tax asset(1)	$	105	$	199

(1)Net deferred income tax asset, as of both December 31, 2022 and 2021, is presented in other assets in the Consolidated Balance Sheet.