XML 93 R57.htm IDEA: XBRL DOCUMENT v3.5.0.2
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents the Company's assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):
 
 
Input Levels for Fair Value Measurements
 
 
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
Other(1)
 
Total
As of September 30, 2016
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
$
1

 
$
22

 
$
88

 
$
(18
)
 
$
93

Interest rate derivatives
 
—

 
1

 
11

 
—

 
12

Mortgage loans held for sale
 
—

 
443

 
—

 
—

 
443

Money market mutual funds(2)
 
557

 
—

 
—

 
—

 
557

Debt securities:
 
 
 
 
 
 
 
 
 
 
United States government obligations
 
156

 
—

 
—

 
—

 
156

International government obligations
 
—

 
3

 
—

 
—

 
3

Corporate obligations
 
—

 
36

 
—

 
—

 
36

Municipal obligations
 
—

 
2

 
—

 
—

 
2

Agency, asset and mortgage-backed obligations
 
—

 
2

 
—

 
—

 
2

Auction rate securities
 
—

 
—

 
18

 
—

 
18

Equity securities:
 
 
 
 
 
 
 
 
 
 
United States companies
 
249

 
—

 
—

 
—

 
249

International companies
 
1,483

 
—

 
—

 
—

 
1,483

Investment funds
 
174

 
—

 
—

 
—

 
174

 
 
$
2,620


$
509


$
117


$
(18
)
 
$
3,228

Liabilities:
 
 

 
 

 
 

 
 

 
 

Commodity derivatives
 
$
(4
)

$
(234
)

$
(32
)

$
103

 
$
(167
)
Interest rate derivatives
 
(1
)
 
(30
)
 
—

 
—

 
(31
)
 
 
$
(5
)
 
$
(264
)
 
$
(32
)
 
$
103

 
$
(198
)
 
As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
$
—

 
$
16

 
$
93

 
$
(16
)
 
$
93

Interest rate derivatives
 
—

 
5

 
5

 
—

 
10

Mortgage loans held for sale
 
—

 
327

 
—

 
—

 
327

Money market mutual funds(2)
 
421

 
—

 
—

 
—

 
421

Debt securities:
 
 
 
 
 
 
 
 
 
 
United States government obligations
 
133

 
—

 
—

 
—

 
133

International government obligations
 
—

 
2

 
—

 
—

 
2

Corporate obligations
 
—

 
39

 
—

 
—

 
39

Municipal obligations
 
—

 
1

 
—

 
—

 
1

Agency, asset and mortgage-backed obligations
 
—

 
3

 
—

 
—

 
3

Auction rate securities
 
—

 
—

 
44

 
—

 
44

Equity securities:
 
 
 
 
 
 
 
 
 
 
United States companies
 
239

 
—

 
—

 
—

 
239

International companies
 
1,244

 
—

 
—

 
—

 
1,244

Investment funds
 
136

 
—

 
—

 
—

 
136

 
 
$
2,173

 
$
393

 
$
142

 
$
(16
)
 
$
2,692

Liabilities:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
$
(13
)
 
$
(283
)
 
$
(46
)
 
$
119

 
$
(223
)
Interest rate derivatives
 
—

 
(13
)
 
(1
)
 
—

 
(14
)
 
 
$
(13
)
 
$
(296
)
 
$
(47
)
 
$
119

 
$
(237
)

(1)
Represents netting under master netting arrangements and a net cash collateral receivable of $85 million and $103 million as of September 30, 2016 and December 31, 2015, respectively.
(2)
Amounts are included in cash and cash equivalents; other current assets; and noncurrent investments and restricted cash and investments on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.
Fair Value Assets and Liabilities Net Measured On Recurring Basis Unobservable Input Reconciliation
The following table reconciles the beginning and ending balances of the Company's assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):
 
Three-Month Periods
 
Nine-Month Periods
 
Ended September 30,
 
Ended September 30,
 
 
 
Interest
 
Auction
 
 
 
Interest
 
Auction
 
Commodity
 
Rate
 
Rate
 
Commodity
 
Rate
 
Rate
 
Derivatives
 
Derivatives
 
Securities
 
Derivatives
 
Derivatives
 
Securities
2016:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
44

 
$
14

 
$
18

 
$
47

 
$
4

 
$
44

Changes included in earnings
9

 
49

 
—

 
8

 
103

 
—

Changes in fair value recognized in OCI
(2
)
 
—

 
—

 
(2
)
 
—

 
6

Changes in fair value recognized in net regulatory assets
(1
)
 
—

 
—

 
(12
)
 
—

 
—

Purchases
1

 
—

 
—

 
1

 
—

 
—

Redemptions
—

 
—

 
—

 
—

 
—

 
(32
)
Settlements
5

 
(52
)
 
—

 
14

 
(96
)
 
—

Ending balance
$
56

 
$
11

 
$
18

 
$
56

 
$
11

 
$
18


 
Three-Month Periods
 
Nine-Month Periods
 
Ended September 30,
 
Ended September 30,
 
 
 
Interest
 
Auction
 
 
 
Interest
 
Auction
 
Commodity
 
Rate
 
Rate
 
Commodity
 
Rate
 
Rate
 
Derivatives
 
Derivatives
 
Securities
 
Derivatives
 
Derivatives
 
Securities
2015:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
34

 
$
5

 
$
45

 
$
51

 
$
—

 
$
45

Changes included in earnings
6

 
25

 
—

 
17

 
70

 
—

Changes in fair value recognized in OCI
(2
)
 
—

 
(1
)
 
(5
)
 
—

 
(1
)
Changes in fair value recognized in net regulatory assets
(4
)
 
—

 
—

 
(21
)
 
—

 
—

Purchases
—

 
—

 
—

 
1

 
—

 
—

Settlements
9

 
(23
)
 
—

 
—

 
(66
)
 
—

Transfers from Level 2
—

 
—

 
—

 
—

 
3

 
—

Ending balance
$
43

 
$
7

 
$
44

 
$
43

 
$
7

 
$
44
Fair Value, by Balance Sheet Grouping
The following table presents the carrying value and estimated fair value of the Company's long-term debt (in millions):
 
As of September 30, 2016
 
As of December 31, 2015
 
Carrying
 
Fair
 
Carrying
 
Fair
 
Value
 
Value
 
Value
 
Value
 
 
 
 
 
 
 
 
Long-term debt
$
36,203

 
$
42,970

 
$
37,972

 
$
41,785
PacifiCorp [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents PacifiCorp's assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):
 
 
Input Levels for Fair Value Measurements
 
 
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
Other(1) 
 
Total
As of September 30, 2016
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
$
—

 
$
11

 
$
—

 
$
(6
)
 
$
5

Money market mutual funds(2)
 
199

 
—

 
—

 
—

 
199

Investment funds
 
16

 
—

 
—

 
—

 
16

 
 
$
215

 
$
11

 
$
—

 
$
(6
)
 
$
220

 
 
 
 
 
 
 
 
 
 
 
Liabilities - Commodity derivatives
 
$
—

 
$
(116
)
 
$
—

 
$
79

 
$
(37
)
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
$
—

 
$
9

 
$
3

 
$
(3
)
 
$
9

Money market mutual funds(2)
 
13

 
—

 
—

 
—

 
13

Investment funds
 
15

 
—

 
—

 
—

 
15

 
 
$
28

 
$
9

 
$
3

 
$
(3
)
 
$
37

 
 
 
 
 
 
 
 
 
 
 
Liabilities - Commodity derivatives
 
$
—

 
$
(148
)
 
$
—

 
$
78

 
$
(70
)
Fair Value, by Balance Sheet Grouping
PacifiCorp's long-term debt is carried at cost on the Consolidated Balance Sheets. The fair value of PacifiCorp's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of PacifiCorp's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of PacifiCorp's long-term debt (in millions):

 
 
As of September 30, 2016
 
As of December 31, 2015
 
 
Carrying
 
Fair
 
Carrying
 
Fair
 
 
Value
 
Value
 
Value
 
Value
 
 
 
 
 
 
 
 
 
Long-term debt
 
$
7,063

 
$
8,690

 
$
7,114

 
$
8,210
MidAmerican Energy Company [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents MidAmerican Energy's assets and liabilities recognized on the Balance Sheets and measured at fair value on a recurring basis (in millions):
 
 
Input Levels for Fair Value Measurements
 
 
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
Other(1)
 
Total
As of September 30, 2016:
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
$
—

 
$
3

 
$
2

 
$
(3
)
 
$
2

Money market mutual funds(2)
 
51

 
—

 
—

 
—

 
51

Debt securities:
 
 
 
 
 
 
 
 
 
 
United States government obligations
 
156

 
—

 
—

 
—

 
156

International government obligations
 
—

 
3

 
—

 
—

 
3

Corporate obligations
 
—

 
36

 
—

 
—

 
36

Municipal obligations
 
—

 
2

 
—

 
—

 
2

Agency, asset and mortgage-backed obligations
 
—

 
2

 
—

 
—

 
2

Auction rate securities
 
—

 
—

 
18

 
—

 
18

Equity securities:
 
 
 
 
 
 
 
 
 
 
United States companies
 
249

 
—

 
—

 
—

 
249

International companies
 
6

 
—

 
—

 
—

 
6

Investment funds
 
9

 
—

 
—

 
—

 
9

 
 
$
471

 
$
46

 
$
20

 
$
(3
)
 
$
534

 
 
 
 
 
 
 
 
 
 
 
Liabilities - commodity derivatives
 
$
(1
)
 
$
(4
)
 
$
(4
)
 
$
4

 
$
(5
)
 
 
Input Levels for Fair Value Measurements
 
 
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
Other(1)
 
Total
As of December 31, 2015:
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
$
—

 
$
8

 
$
18

 
$
(13
)
 
$
13

Money market mutual funds(2)
 
56

 
—

 
—

 
—

 
56

Debt securities:
 
 
 
 
 
 
 
 
 
 
United States government obligations
 
133

 
—

 
—

 
—

 
133

International government obligations
 
—

 
2

 
—

 
—

 
2

Corporate obligations
 
—

 
39

 
—

 
—

 
39

Municipal obligations
 
—

 
1

 
—

 
—

 
1

Agency, asset and mortgage-backed obligations
 
—

 
3

 
—

 
—

 
3

Auction rate securities
 
—

 
—

 
26

 
—

 
26

Equity securities:
 
 
 
 
 
 
 
 
 
 
United States companies
 
239

 
—

 
—

 
—

 
239

International companies
 
6

 
—

 
—

 
—

 
6

Investment funds
 
4

 
—

 
—

 
—

 
4

 
 
$
438

 
$
53

 
$
44

 
$
(13
)
 
$
522

 
 
 
 
 
 
 
 
 
 
 
Liabilities - commodity derivatives
 
$
(13
)
 
$
(61
)
 
$
(24
)
 
$
41

 
$
(57
)

(1)
Represents netting under master netting arrangements and a net cash collateral receivable of $1 million and $28 million as of September 30, 2016 and December 31, 2015, respectively.
(2)
Amounts are included in cash and cash equivalents and investments and restricted cash and investments on the Balance Sheets. The fair value of these money market mutual funds approximates cost.
Fair Value Assets and Liabilities Net Measured On Recurring Basis Unobservable Input Reconciliation
The following table reconciles the beginning and ending balances of MidAmerican Energy's assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):
 
Three-Month Periods
 
Nine-Month Periods
 
Ended September 30,
 
Ended September 30,
 
Commodity
Derivatives
 
Auction Rate
Securities
 
Commodity
Derivatives
 
Auction Rate Securities
2016:
 
 
 
 
 
 
 
Beginning balance
$
(2
)
 
$
18

 
$
(6
)
 
$
26

Transfer to affiliate
—

 
—

 
(4
)
 
—

Changes in fair value recognized in OCI
—

 
—

 
—

 
3

Changes in fair value recognized in net regulatory assets
(1
)
 
—

 
(5
)
 
—

Redemptions
—

 
—

 
—

 
(11
)
Settlements
1

 
—

 
13

 
—

Ending balance
$
(2
)
 
$
18

 
$
(2
)
 
$
18

 
 
 
 
 
 
 
 
2015:
 
 
 
 
 
 
 
Beginning balance
$
(7
)
 
$
27

 
$
12

 
$
26

Changes included in earnings
2

 
—

 
6

 
—

Changes in fair value recognized in OCI
(2
)
 
(1
)
 
(5
)
 
—

Changes in fair value recognized in net regulatory assets
(5
)
 
—

 
(20
)
 
—

Purchases
—

 
—

 
1

 
—

Settlements
5

 
—

 
(1
)
 
—

Ending balance
$
(7
)
 
$
26

 
$
(7
)
 
$
26
Fair Value, by Balance Sheet Grouping
MidAmerican Energy's long-term debt is carried at cost on the Balance Sheets. The fair value of MidAmerican Energy's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of MidAmerican Energy's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of MidAmerican Energy's long-term debt (in millions):
 
As of September 30, 2016
 
As of December 31, 2015
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
 
 
 
 
 
 
 
 
Long-term debt
$
4,268

 
$
5,000

 
$
4,271

 
$
4,636
MidAmerican Funding, LLC and Subsidiaries [Domain]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value, by Balance Sheet Grouping
MidAmerican Funding's long-term debt is carried at cost on the Consolidated Financial Statements. The fair value of MidAmerican Funding's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of MidAmerican Funding's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of MidAmerican Funding's long-term debt (in millions):
 
As of September 30, 2016
 
As of December 31, 2015
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
 
 
 
 
 
 
 
 
Long-term debt
$
4,593

 
$
5,458

 
$
4,597

 
$
5,051
Nevada Power Company [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents Nevada Power's assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):
 
Input Levels for Fair Value Measurements
 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
As of September 30, 2016
 
 
 
 
 
 
 
Assets - investment funds
$
6

 
$
—

 
$
—

 
$
6

 
 
 
 
 
 
 
 
Liabilities - commodity derivatives
$
—

 
$
—

 
$
(19
)
 
$
(19
)
 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
Assets - investment funds
$
5

 
$
—

 
$
—

 
$
5

 
 
 
 
 
 
 
 
Liabilities - commodity derivatives
$
—

 
$
—

 
$
(22
)
 
$
(22
)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation
The following table reconciles the beginning and ending balances of Nevada Power's commodity derivative liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):
 
Three-Month Periods
 
Nine-Month Periods
 
Ended September 30,
 
Ended September 30,
 
2016
 
2015
 
2016
 
2015
Beginning balance
$
(22
)
 
$
(33
)
 
$
(22
)
 
$
(30
)
Changes in fair value recognized in regulatory assets
(1
)
 
2

 
(6
)
 
(3
)
Settlements
4

 
6

 
9

 
8

Ending balance
$
(19
)
 
$
(25
)
 
$
(19
)
 
$
(25
)
Fair Value, by Balance Sheet Grouping
The following table presents the carrying value and estimated fair value of Nevada Power's long‑term debt (in millions):
 
As of September 30, 2016
 
As of December 31, 2015
 
Carrying
 
Fair
 
Carrying
 
Fair
 
Value
 
Value
 
Value
 
Value
 
 
 
 
 
 
 
 
Long-term debt
$
2,580

 
$
3,176

 
$
2,788

 
$
3,240
Sierra Pacific Power Company [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value, by Balance Sheet Grouping
The following table presents the carrying value and estimated fair value of Sierra Pacific's long-term debt (in millions):
 
As of September 30, 2016
 
As of December 31, 2015
 
Carrying
 
Fair
 
Carrying
 
Fair
 
Value
 
Value
 
Value
 
Value
 
 
 
 
 
 
 
 
Long-term debt
$
1,120

 
$
1,246

 
$
1,165

 
$
1,248