Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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):

	2023		2022		2021
Current:
Federal	$	(1,650)	$	(1,463)	$	(1,701)
State	118		(65)		(177)
Foreign	90		79		100
	(1,442)		(1,449)		(1,778)
Deferred:
Federal	(114)		(408)		1,037
State	(275)		(49)		(476)
Foreign	33		(5)		89
	(356)		(462)		650
Investment tax credits	99		(5)		(4)
Total	$	(1,699)	$	(1,916)	$	(1,132)

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:

	2023		2022		2021
Federal statutory income tax rate	21	%	21	%	21	%
Income tax credits	(85)		(124)		(27)
Effects of ratemaking	(11)		(16)		(4)
State income tax, net of federal income tax benefit	(6)		(6)		(10)
Non-controlling interest	(4)		(6)		(2)
Income tax effect of foreign income	(1)		(4)		(1)
Tax rate change - deferred (foreign)	2		—		2
Equity loss	(3)		(3)		(1)
Other, net	—		2		1
Effective income tax rate	(87)	%	(136)	%	(21)	%

Components of Deferred Tax Assets and Liabilities

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

	2023		2022
Deferred income tax assets:
Regulatory liabilities	$	1,248	$	1,323
Federal, state and foreign carryforwards	774		812
AROs	318		283
Loss contingency	431		109
Other	629		632
Total deferred income tax assets	3,400		3,159
Valuation allowances	(142)		(187)
Total deferred income tax assets, net	3,258		2,972
Deferred income tax liabilities:
Property-related items	(12,596)		(12,244)
Investments	(1,574)		(1,998)
Regulatory assets	(1,034)		(898)
Other	(491)		(510)
Total deferred income tax liabilities	(15,695)		(15,650)
Net deferred income tax liability	$	(12,437)	$	(12,678)

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, 2023 (in millions):

	Federal		State		Foreign		Total
Net operating loss carryforwards(1)	$	119	$	9,850	$	688	$	10,657
Deferred income taxes on net operating loss carryforwards	25		547		158		730
Expiration dates	2024 - indefinite		2024 - indefinite		2028 - 2043
Tax credits	$	15	$	29	$	—	$	44
Expiration dates	2024 - 2034		2024 - 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):

	2023		2022
Beginning balance	$	68	$	97
Additions based on tax positions related to the current year	10		15
Additions for tax positions of prior years	1		—
Reductions based on tax positions related to the current year	(6)		(12)
Reductions for tax positions of prior years	—		(23)
Statute of limitations	(1)		—
Interest and penalties	1		(9)
Ending balance	$	73	$	68

PAC

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):

	2023		2022		2021
Current:
Federal	$	(324)	$	(216)	$	(150)
State	(5)		(3)		7
Total	(329)		(219)		(143)
Deferred:
Federal	(172)		90		26
State	(51)		71		40
Total	(223)		161		66
Investment tax credits	(1)		(4)		(2)
Total income tax expense (benefit)	$	(553)	$	(62)	$	(79)

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:

	2023		2022		2021
Federal statutory income tax rate	21	%	21	%	21	%
State income taxes, net of federal income tax benefit	4		3		3
Effects of ratemaking(1)	11		(12)		(14)
Federal income tax credits	18		(22)		(20)
Valuation allowance	1		2		—
Other	(1)		1		—
Effective income tax rate	54	%	(7)	%	(10)	%

(1)     Effects of ratemaking is primarily attributable to activity associated with excess deferred income taxes.

Components of Deferred Tax Assets and Liabilities

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

	2023		2022
Deferred income tax assets:
Regulatory liabilities	$	643	$	724
Employee benefits	51		59
State carryforwards	84		73
Loss contingencies	429		107
AROs	85		79
Other	117		80
Total deferred income tax assets	1,409		1,122
Valuation allowances	(24)		(35)
Total deferred income tax assets, net	1,385		1,087
Deferred income tax liabilities:
Property-related items	(3,704)		(3,612)
Regulatory assets	(632)		(462)
Other	(134)		(165)
Total deferred income tax liabilities	(4,470)		(4,239)
Net deferred income tax liability	$	(3,085)	$	(3,152)

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, 2023 (in millions):

	State
Net operating loss carryforwards	$	1,427
Deferred income taxes on net operating loss carryforwards	$	64
Expiration dates	2026 - indefinite
Tax credit carryforwards	$	20
Expiration dates	2024 - indefinite

MEC

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Components of Income Tax Expense (Benefit)

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

	2023		2022		2021
Current:
Federal	$	(755)	$	(769)	$	(736)
State	(28)		(34)		(92)
	(783)		(803)		(828)
Deferred:
Federal	109		77		189
State	(18)		(43)		(35)
	91		34		154
Investment tax credits	(1)		(1)		(1)
Total	$	(693)	$	(770)	$	(675)

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 expense (benefit) is as follows for the years ended December 31:

	2023		2022		2021
Federal statutory income tax rate	21	%	21	%	21	%
Income tax credits	(236)		(372)		(262)
State income tax, net of federal income tax impacts	(12)		(32)		(46)
Effects of ratemaking	(12)		(23)		(20)
Other, net	(1)		3		(1)
Effective income tax rate	(240)	%	(403)	%	(308)	%

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):

	2023		2022
Deferred income tax assets:
Regulatory liabilities	$	218	$	194
Asset retirement obligations	204		191
State carryforwards	68		61
Revenue sharing	34		87
Employee benefits	25		37
Other	68		24
Total deferred income tax assets	617		594
Valuation allowances	(2)		(2)
Total deferred income tax assets, net	615		592
Deferred income tax liabilities:
Property-related items	(3,972)		(3,895)
Regulatory assets	(134)		(128)
Other	(3)		(2)
Total deferred income tax liabilities	(4,109)		(4,025)
Net deferred income tax liability	$	(3,494)	$	(3,433)

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):

	2023		2022
Beginning balance	$	16	$	13
Additions based on tax positions related to the current year	10		15
Interest	1		—
Reductions based on tax positions related to the current year	(5)		(12)
Ending balance	$	22	$	16

MidAmerican Funding, LLC

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Components of Income Tax Expense (Benefit)

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

	2023		2022		2021
Current:
Federal	$	(756)	$	(773)	$	(739)
State	(29)		(36)		(94)
	(785)		(809)		(833)
Deferred:
Federal	109		77		189
State	(18)		(43)		(35)
	91		34		154
Investment tax credits	(1)		(1)		(1)
Total	$	(695)	$	(776)	$	(680)

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 expense (benefit) is as follows for the years ended December 31:

	2023		2022		2021
Federal statutory income tax rate	21	%	21	%	21	%
Income tax credits	(239)		(416)		(283)
State income tax, net of federal income tax impacts	(13)		(36)		(50)
Effects of ratemaking	(12)		(26)		(21)
Other, net	(1)		3		(2)
Effective income tax rate	(244)	%	(454)	%	(335)	%

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):

	2023		2022
Deferred income tax assets:
Regulatory liabilities	$	218	$	194
Asset retirement obligations	204		192
State carryforwards	68		61
Revenue sharing	34		87
Employee benefits	25		37
Other	69		24
Total deferred income tax assets	618		595
Valuation allowances	(2)		(2)
Total deferred income tax assets, net	616		593
Deferred income tax liabilities:
Property-related items	(3,972)		(3,895)
Regulatory assets	(134)		(128)
Other	(2)		(1)
Total deferred income tax liabilities	(4,108)		(4,024)
Net deferred income tax liability	$	(3,492)	$	(3,431)

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):

	2023		2022
Beginning balance	$	16	$	13
Additions based on tax positions related to the current year	10		15
Interest	1		—
Reductions based on tax positions related to the current year	(5)		(12)
Ending balance	$	22	$	16

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):

	2023		2022		2021
Current – Federal	$	(4)	$	(13)	$	37
Deferred – Federal	(74)		49		—
Investment tax credits	100		—		—
Total income tax expense	$	22	$	36	$	37

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:

	2023		2022		2021
Federal statutory income tax rate	21	%	21	%	21	%
Effects of ratemaking	(13)		(11)		(11)
Other	—		1		1
Effective income tax rate	8	%	11	%	11	%

Components of Deferred Tax Assets and Liabilities

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

	2023		2022
Deferred income tax assets:
Regulatory liabilities	$	195	$	186
Operating and finance leases	66		68
Customer advances	38		27
Unamortized contract value	14		20
Other	9		9
Total deferred income tax assets	322		310
Deferred income tax liabilities:
Property-related items	(828)		(821)
Regulatory assets	(245)		(273)
Operating and finance leases	(62)		(65)
Other	(23)		(26)
Total deferred income tax liabilities	(1,158)		(1,185)
Net deferred income tax liability	$	(836)	$	(875)

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):

	2023		2022		2021
Current – Federal	$	72	$	(12)	$	5
Deferred – Federal	(57)		31		13
Investment tax credits	1		—		—
Total income tax expense	$	16	$	19	$	18

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:

	2023		2022		2021
Federal statutory income tax rate	21	%	21	%	21	%
Effects of ratemaking	(9)		(7)		(8)
Effective income tax rate	12	%	14	%	13	%

Components of Deferred Tax Assets and Liabilities

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

	2023		2022
Deferred income tax assets:
Regulatory liabilities	$	62	$	63
Operating and finance leases	25		26
Customer advances	16		17
Unamortized contract value	3		6
Other	5		6
Total deferred income tax assets	111		118
Deferred income tax liabilities:
Property-related items	(376)		(387)
Regulatory assets	(100)		(135)
Operating and finance leases	(24)		(25)
Other	(15)		(16)
Total deferred income tax liabilities	(515)		(563)
Net deferred income tax liability	$	(404)	$	(445)

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):

	2023		2022		2021
Current:
Federal	$	(236)	$	12	$	(47)
State	(7)		29		(21)
	(243)		41		(68)
Deferred:
Federal	357		88		129
State	(4)		38		56
	353		126		185
Total	$	110	$	167	$	117

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:

	2023		2022		2021
Federal statutory income tax rate	21	%	21	%	21	%
State income tax, net of federal income tax benefit	(1)		6		3
Equity interest	2		2		1
Effects of ratemaking	—		(1)		1
Noncontrolling interest	(9)		(10)		(11)
Other, net	—		—		1
Effective income tax rate	13	%	18	%	16	%

Components of Deferred Tax Assets and Liabilities

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

	2023		2022
Deferred income tax assets:
Federal and state carryforwards	$	22	$	23
Employee benefits	29		22
Intangibles	98		112
Derivatives and hedges	13		16
Deferred state income taxes	24		—
Other	4		7
Total deferred income tax assets	190		180
Deferred income tax liabilities:
Property-related items	(343)		(214)
Partnership investments	(158)		(51)
Debt exchange	(50)		(53)
Deferred state income taxes	—		(4)
Other	(5)		(12)
Total deferred income tax liabilities	(556)		(334)
Net deferred income tax liability(1)	$	(366)	$	(154)

(1)As of December 31, 2023 and 2022, net deferred income tax liability is presented in other assets and long-term liabilities in the Consolidated Balance Sheets.

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):

	2023		2022		2021
Current:
Federal	$	(28)	$	5	$	(22)
State	(12)		12		(10)
	(40)		17		(32)
Deferred:
Federal	91		64		67
State	28		28		26
	119		92		93
Total	$	79	$	109	$	61

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:

	2023		2022		2021
Federal statutory income tax rate	21	%	21	%	21	%
State income tax, net of federal income tax benefit	4		9		8
Other, net	—		(1)		(1)
Effective income tax rate	25	%	29	%	28	%

Components of Deferred Tax Assets and Liabilities

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

	2023		2022
Deferred income tax assets:
Federal and state carryforwards	$	5	$	6
Employee benefits	26		22
Intangibles and goodwill	252		265
Derivatives and hedges	10		11
Other	5		4
Total deferred income tax assets	298		308
Deferred income tax liabilities:
Property-related items	(264)		(146)
Debt exchange	(50)		(53)
Employee benefits	—		(4)
Total deferred income tax liabilities	(314)		(203)
Net deferred income tax (liability) asset(1)	$	(16)	$	105

(1)As of December 31, 2023, net federal deferred income tax liability is presented in other long-term liabilities and net state deferred income tax asset is presented in other assets in the Consolidated Balance Sheets. As of December 31, 2022, net deferred income tax assets is presented in other assets in the Consolidated Balance Sheets.