Income Taxes (Notes)

12 Months Ended

Dec. 31, 2016

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes [Text Block]

Income Taxes

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

	2016			2015			2014
Current:
Federal	$	(743	)	$	(929	)	$	(1,872	)
State	1			29			(3		)
Foreign	55			84			129
	(687		)	(816		)	(1,746		)
Deferred:
Federal	1,164			1,310			2,296
State	(59		)	(53		)	37
Foreign	(7		)	17			11
	1,098			1,274			2,344
Investment tax credits	(8		)	(8		)	(9		)
Total	$	403		$	450		$	589

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:

	2016		2015		2014
Federal statutory income tax rate	35	%	35	%	35	%
Income tax credits	(14	)	(11	)	(10	)
State income tax, net of federal income tax benefit	(1	)	(1	)	1
Income tax effect of foreign income	(6	)	(7	)	(3	)
Equity income	2		2		2
Other, net	(2	)	(2	)	(2	)
Effective income tax rate	14	%	16	%	23	%

Income tax credits relate primarily to production tax credits from wind-powered generating facilities owned by MidAmerican Energy, PacifiCorp and BHE Renewables. Federal renewable electricity production tax credits are earned as energy from qualifying wind-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service.

Income tax effect of foreign income includes, among other items, deferred income tax benefits of $16 million in 2016 and $39 million in 2015 related to the enactment of reductions in the United Kingdom corporate income tax rate. In September 2016, the corporate income tax rate was reduced from 18% to 17% effective April 1, 2020. In November 2015, the corporate income tax rate was reduced from 20% to 19% effective April 1, 2017, with a further reduction to 18% effective April 1, 2020.

Berkshire Hathaway includes the Company in its United States federal income tax return. As of December 31, 2016, the Company had current income taxes payable to Berkshire Hathaway of $27 million. As of December 31, 2015, the Company had current income taxes receivable from Berkshire Hathaway of $286 million.

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

	2016			2015
Deferred income tax assets:
Federal, state and foreign carryforwards	$	987		$	865
Regulatory liabilities	909			834
AROs	326			317
Employee benefits	209			190
Derivative contracts	29			83
Other	707			815
Total deferred income tax assets	3,167			3,104
Valuation allowances	(64		)	(35		)
Total deferred income tax assets, net	3,103			3,069
Deferred income tax liabilities:
Property-related items	(14,237		)	(13,157		)
Regulatory assets	(1,449		)	(1,446		)
Investments	(962		)	(852		)
Other	(334		)	(299		)
Total deferred income tax liabilities	(16,982		)	(15,754		)
Net deferred income tax liability	$	(13,879	)	$	(12,685	)

The following table provides the Company's net operating loss and tax credit carryforwards and expiration dates as of December 31, 2016 (in millions):

	Federal		State		Foreign		Total
Net operating loss carryforwards(1)	$	179	$	11,549	$	352	$	12,080
Deferred income taxes on net operating loss carryforwards	$	65	$	674	$	95	$	834
Expiration dates	2023-2025		2017-2036		2035-2036
Tax credits(2)	$	128	$	25	$	—	$	153
Expiration dates	2023- indefinite		2017- indefinite

(1) The federal net operating loss carry forwards relate principally to net operating loss carry forwards of subsidiaries that are tax residents in both the United States and the United Kingdom. The federal net operating loss carry forwards were generated prior to Berkshire Hathaway Inc.'s ownership and will begin to expire in 2023.

(2) Includes $97 million of deferred foreign tax credits associated with the federal income tax on unremitted tax earnings and profit pools that will begin to be creditable and expire 10 years after the date the foreign earnings are repatriated through actual or deemed dividends. As of December 31, 2016 the statute of limitation had not begun on the foreign tax credit carryforwards.

The United States Internal Revenue Service has closed its examination of the Company's income tax returns through December 31, 2009. Most state tax agencies have closed their examinations of the Company's income tax returns through February 9, 2006, except for (i) Iowa, which is closed through December 31, 2012, (ii) Illinois, which is closed through December 31, 2008 and (iii) the statute of limitations for PacifiCorp's state income tax returns have expired through December 31, 2009, with the exception of California, Oregon and Utah, for which the statute of limitations have expired through March 31, 2006. Examinations have been closed in the United Kingdom through December 31, 2014, in Canada through December 31, 2008 and in the Philippines through December 31, 2012.

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):

	2016			2015
Beginning balance	$	198		$	220
Additions based on tax positions related to the current year	7			3
Additions for tax positions of prior years	6			46
Reductions for tax positions of prior years	(11		)	(58		)
Statute of limitations	(1		)	(6		)
Settlements	(67		)	(6		)
Interest and penalties	(4		)	(1		)
Ending balance	$	128		$	198

As of December 31, 2016 and 2015, the Company had unrecognized tax benefits totaling $104 million and $163 million, respectively, that if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits, other than applicable interest and penalties, would not affect the Company's effective income tax rate.

PacifiCorp [Member]

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes [Text Block]

Income Taxes

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

	2016			2015			2014
Current:
Federal	$	169		$	130		$	2
State	32			26			10
Total	201			156			12
Deferred:
Federal	123			148			260
State	21			29			43
Total	144			177			303
Investment tax credits	(5		)	(5		)	(6		)
Total income tax expense	$	340		$	328		$	309

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:

	2016		2015		2014
Federal statutory income tax rate	35	%	35	%	35	%
State income taxes, net of federal income tax benefit	3		3		3
Federal income tax credits	(6	)	(6	)	(7	)
Other	(1	)	—		—
Effective income tax rate	31	%	32	%	31	%

Income tax credits relate primarily to production tax credits earned by PacifiCorp's wind-powered generating facilities. Federal renewable electricity production tax credits are earned as energy from qualifying wind-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service.

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

	2016			2015
Deferred income tax assets:
Regulatory liabilities	$	393		$	374
Employee benefits	202			189
Derivative contracts and unamortized contract values	67			94
State carryforwards	69			68
Loss contingencies	12			67
Asset retirement obligations	78			81
Other	82			88
	903			961
Deferred income tax liabilities:
Property, plant and equipment	(5,161		)	(5,030		)
Regulatory assets	(586		)	(639		)
Other	(36		)	(42		)
	(5,783		)	(5,711		)
Net deferred income tax liability	$	(4,880	)	$	(4,750	)

The following table provides PacifiCorp's net operating loss and tax credit carryforwards and expiration dates as of December 31, 2016 (in millions):

	State
Net operating loss carryforwards	$	1,415
Deferred income taxes on net operating loss carryforwards	$	52
Expiration dates	2017 - 2032
Tax credit carryforwards	$	17
Expiration dates	2017 - indefinite

The United States Internal Revenue Service has closed its examination of PacifiCorp's income tax returns through December 31, 2009. The statute of limitations for PacifiCorp's state income tax returns have expired through December 31, 2009, with the exception of California, Oregon and Utah, for which the statute of limitations have expired through March 31, 2006.

As of December 31, 2016 and 2015, PacifiCorp had unrecognized tax benefits totaling $12 million and $13 million, respectively, related to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits, other than applicable interest and penalties, would not affect PacifiCorp's effective income tax rate.

MidAmerican Energy Company [Member]

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes [Text Block]

Income Taxes

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

	2016			2015			2014
Current:
Federal	$	(479	)	$	(415	)	$	(411	)
State	(14		)	(6		)	(4		)
	(493		)	(421		)	(415		)
Deferred:
Federal	366			281			298
State	(4		)	(6		)	2
	362			275			300
Investment tax credits	(1		)	(1		)	(1		)
Total	$	(132	)	$	(147	)	$	(116	)

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

	2016		2015		2014
Federal statutory income tax rate	35	%	35	%	35	%
Income tax credits	(61	)	(71	)	(65	)
State income tax, net of federal income tax benefit	(3	)	(2	)	—
Effects of ratemaking	(3	)	(12	)	(9	)
Other, net	—		1		(2	)
Effective income tax rate	(32	)%	(49	)%	(41	)%

Income tax credits relate primarily to production tax credits earned by MidAmerican Energy's wind-powered generating facilities. Federal renewable electricity production tax credits are earned as energy from qualifying wind-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in service.

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

	2016			2015
Deferred income tax assets:
Regulatory liabilities	$	333		$	327
Asset retirement obligations	230			214
Employee benefits	66			66
Other	74			88
Total deferred income tax assets	703			695
Deferred income tax liabilities:
Depreciable property	(3,763		)	(3,321		)
Regulatory assets	(471		)	(418		)
Other	(41		)	(17		)
Total deferred income tax liabilities	(4,275		)	(3,756		)
Net deferred income tax liability	$	(3,572	)	$	(3,061	)

As of December 31, 2016, MidAmerican Energy has available $25 million of state tax carryforwards, principally related to $549 million of net operating losses, that expire at various intervals between 2017 and 2035.

The United States Internal Revenue Service has closed its examination of BHE's income tax returns through December 31, 2009, including components related to MidAmerican Energy. In addition, state jurisdictions have closed their examinations of MidAmerican Energy's income tax returns for Iowa through December 31, 2012, for Illinois through December 31, 2008, and for other jurisdictions through December 31, 2009.

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):

	2016			2015
Beginning balance	$	10		$	26
Additions based on tax positions related to the current year	—			3
Additions for tax positions of prior years	10			47
Reductions based on tax positions related to the current year	(2		)	(6		)
Reductions for tax positions of prior years	(8		)	(46		)
Statute of limitations	—			(5		)
Settlements	—			(6		)
Interest and penalties	—			(3		)
Ending balance	$	10		$	10

As of December 31, 2016, MidAmerican Energy had unrecognized tax benefits totaling$29 million that, if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits, other than applicable interest and penalties, would not affect MidAmerican Energy's effective income tax rate.

MidAmerican Funding, LLC and Subsidiaries [Domain]

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes [Text Block]

Income Taxes

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

	2016			2015			2014
Current:
Federal	$	(485	)	$	(418	)	$	(414	)
State	(16		)	(8		)	(5		)
	(501		)	(426		)	(419		)
Deferred:
Federal	367			282			296
State	(4		)	(5		)	2
	363			277			298
Investment tax credits	(1		)	(1		)	(1		)
Total	$	(139	)	$	(150	)	$	(122	)

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

	2016		2015		2014
Federal statutory income tax rate	35	%	35	%	35	%
Income tax credits	(64	)	(72	)	(68	)
State income tax, net of federal income tax benefit	(3	)	(3	)	(1	)
Effects of ratemaking	(3	)	(12	)	(10	)
Other, net	—		1		(1	)
Effective income tax rate	(35	)%	(51	)%	(45	)%

Income tax credits relate primarily to production tax credits earned by MidAmerican Energy's wind-powered generating facilities. Federal renewable electricity production tax credits are earned as energy from qualifying wind-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in service.

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

	2016			2015
Deferred income tax assets:
Regulatory liabilities	$	333		$	327
Employee benefits	66			66
Asset retirement obligations	230			214
Other	82			97
Total deferred income tax assets	711			704
Deferred income tax liabilities:
Depreciable property	(3,767		)	(3,326		)
Regulatory assets	(471		)	(418		)
Other	(41		)	(16		)
Total deferred income tax liabilities	(4,279		)	(3,760		)
Net deferred income tax liability	$	(3,568	)	$	(3,056	)

As of December 31, 2016, MidAmerican Funding has available $25 million of state tax carryforwards, principally related to $549 million of net operating losses, that expire at various intervals between 2017 and 2035.

The United States Internal Revenue Service has closed its examination of BHE's income tax returns through December 31, 2009, including components related to MidAmerican Funding. In addition, state jurisdictions have closed their examinations of MidAmerican Funding's income tax returns for Iowa through December 31, 2012, for Illinois through December 31, 2008, and for other jurisdictions through December 31, 2009.

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):

	2016			2015
Beginning balance	$	10		$	26
Additions based on tax positions related to the current year	—			4
Additions for tax positions of prior years	10			46
Reductions based on tax positions related to the current year	(2		)	(6		)
Reductions for tax positions of prior years	(8		)	(46		)
Statute of limitations	—			(5		)
Settlements	—			(6		)
Interest and penalties	—			(3		)
Ending balance	$	10		$	10

As of December 31, 2016, MidAmerican Funding had unrecognized tax benefits totaling$30 million that, if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits, other than applicable interest and penalties, would not affect MidAmerican Funding's effective income tax rate.

Nevada Power Company [Member]

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes [Text Block]

Income Taxes

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

	2016			2015			2014
Current – Federal	$	68		$	—		$	—
Deferred – Federal	79			163			131
Investment tax credits	(1		)	(1		)	(1		)
Total income tax expense	$	146		$	162		$	130

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:

	2016		2015		2014
Federal statutory income tax rate	35	%	35	%	35	%
Effects of ratemaking	—		1		1
Other	(1	)	—		—
Effective income tax rate	34	%	36	%	36	%

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

	2016			2015
Deferred income tax assets:
Capital and financial leases	170			174
Regulatory liabilities	83			47
Employee benefits	29			30
Customer advances	23			22
Federal net operating loss and credit carryforwards	5			15
Other	16			17
Total deferred income tax assets	326			305
Valuation allowance	(5		)	(5		)
Total deferred income tax assets, net	321			300
Deferred income tax liabilities:
Property related items	(1,293		)	(1,242		)
Regulatory assets	(321		)	(275		)
Capital and financial leases	(165		)	(169		)
Other	(16		)	(19		)
Total deferred income tax liabilities	(1,795		)	(1,705		)
Net deferred income tax liability	$	(1,474	)	$	(1,405	)

The following table provides Nevada Power's tax credit carryforwards and expiration dates as of December 31, 2016 (in millions):

Other tax credits	$	5
Expiration dates	2017 - 2028

The United States federal jurisdiction is the only significant income tax jurisdiction for NV Energy. In July 2012, the United States Internal Revenue Service and the Joint Committee on Taxation concluded their examination of NV Energy with respect to its United States federal income tax returns for December 31, 2005 through December 31, 2008.

Sierra Pacific Power Company [Member]

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes [Text Block]

Income Taxes

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

	2016			2015			2014
Deferred - Federal	$	50		$	48		$	48
Investment tax credits	(1		)	(1		)	(1		)
Total income tax expense	$	49		$	47		$	47

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:

	2016		2015		2014
Federal statutory income tax rate	35	%	35	%	35	%
Effects of ratemaking	1		1		1
Other	1		—		(1	)
Effective income tax rate	37	%	36	%	35	%

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

	2016			2015
Deferred income tax assets:
Federal net operating loss and credit carryforwards	$	25		$	39
Employee benefit plans	22			25
Regulatory liabilities	16			19
Capital and financial lease liabilities	12			13
Customer Advances	9			8
Commodity derivative contract	5			5
Other	6			7
Total deferred income tax assets	$	95		$	116
Deferred income tax liabilities:
Property related items	$	(562	)	$	(538	)
Regulatory assets	(124		)	(121		)
Capital and financial leases	(12		)	(13		)
Other	(14		)	(14		)
Total deferred income tax liabilities	$	(712	)	$	(686	)
Net deferred income tax liability	$	(617	)	$	(570	)

The following table provides Sierra Pacific's federal net operating loss and tax credit carryforwards and expiration dates as of December 31, 2016 (in millions):

Net operating loss carryforwards	$	55
Deferred income taxes on federal net operating loss carryforwards	$	19
Expiration dates	2031 - 2033
Other tax credits	$	6
Expiration dates	2021 - 2032

The United States federal jurisdiction is the only significant income tax jurisdiction for NV Energy. In July 2012, the United States Internal Revenue Service and the Joint Committee on Taxation concluded their examination of NV Energy with respect to its United States federal income tax returns for December 31, 2005 through December 31, 2008.