Condensed Financial Statements (Notes)

12 Months Ended

Dec. 31, 2017

Condensed Financial Statements, Captions [Line Items]

Condensed Financial Statements [Text Block]

Schedule I

Berkshire Hathaway Energy Company

Parent Company Only

Condensed Balance Sheets

As of December 31,

(Amounts in millions)

	2017			2016
ASSETS
Current assets:
Cash and cash equivalents	$	346		$	33
Accounts receivable	—			21
Accounts receivable - affiliate	60			—
Notes receivable - affiliate	391			105
Other current assets	21			2
Total current assets	818			161
Investments in subsidiaries	34,019			33,400
Other investments	2,117			1,338
Goodwill	1,221			1,221
Other assets	1,155			1,171
Total assets	$	39,330		$	37,291
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and other current liabilities	$	268		$	357
Notes payable - affiliate	182			194
Short-term debt	3,331			834
Current portion of BHE senior debt	1,000			400
Total current liabilities	4,781			1,785
BHE senior debt	5,452			7,418
BHE junior subordinated debentures	100			944
Notes payable - affiliate	1			1,859
Other long-term liabilities	800			942
Total liabilities	11,134			12,948
Equity:
BHE shareholders' equity:
Common stock - 115 shares authorized, no par value, 77 shares issued and outstanding	—			—
Additional paid-in capital	6,368			6,390
Retained earnings	22,206			19,448
Accumulated other comprehensive loss, net	(398		)	(1,511		)
Total BHE shareholders' equity	28,176			24,327
Noncontrolling interest	20			16
Total equity	28,196			24,343
Total liabilities and equity	$	39,330		$	37,291

The accompanying notes are an integral part of this financial statement schedule.

Schedule I

Berkshire Hathaway Energy Company

Parent Company Only (continued)

Condensed Statements of Operations

For the years ended December 31,

(Amounts in millions)

	2017			2016			2015
Operating costs and expenses:
General and administration	$	55		$	51		$	58
Depreciation and amortization	4			4			3
Total operating costs and expenses	59			55			61
Operating loss	(59		)	(55		)	(61		)
Other income (expense):
Interest expense	(475		)	(527		)	(556		)
Other, net	(369		)	37			14
Total other income (expense)	(844		)	(490		)	(542		)
Loss before income tax benefit and equity income	(903		)	(545		)	(603		)
Income tax benefit	(335		)	(285		)	(330		)
Equity income	3,441			2,805			2,646
Net income	2,873			2,545			2,373
Net income attributable to noncontrolling interest	3			3			3
Net income attributable to BHE shareholders	$	2,870		$	2,542		$	2,370

The accompanying notes are an integral part of this financial statement schedule.

Schedule I

Berkshire Hathaway Energy Company

Parent Company Only (continued)

Condensed Statements of Comprehensive Income

For the years ended December 31,

(Amounts in millions)

	2017		2016			2015
Net income	$	2,873	$	2,545		$	2,373
Other comprehensive income (loss), net of tax	1,113		(603		)	(414		)
Comprehensive income	3,986		1,942			1,959
Comprehensive income attributable to noncontrolling interests	3		3			3
Comprehensive income attributable to BHE shareholders	$	3,983	$	1,939		$	1,956

The accompanying notes are an integral part of this financial statement schedule.

Schedule I

Berkshire Hathaway Energy Company

Parent Company Only (continued)

Condensed Statements of Cash Flows

For the years ended December 31,

(Amounts in millions)

	2017			2016			2015
Cash flows from operating activities	$	2,450		$	2,760		$	2,528
Cash flows from investing activities:
Investments in subsidiaries	(1,566		)	(1,080		)	(1,506		)
Purchases of investments	(71		)	(24		)	(36		)
Proceeds from sale of investments	68			20			47
Notes receivable from affiliate, net	(305		)	(307		)	19
Other, net	(8		)	(5		)	(7		)
Net cash flows from investing activities	(1,882		)	(1,396		)	(1,483		)
Cash flows from financing activities:
Repayments of BHE senior debt	(1,379		)	—			—
Repayments of BHE subordinated debt	(944		)	(2,000		)	(850		)
Common stock purchases	(19		)	—			(36		)
Net proceeds from (repayments of) short-term debt	2,498			581			(142		)
Tender offer premium paid	(406		)	—			—
Notes payable to affiliate, net	—			69			4
Other, net	(5		)	(4		)	(1		)
Net cash flows from financing activities	(255		)	(1,354		)	(1,025		)
Net change in cash and cash equivalents	313			10			20
Cash and cash equivalents at beginning of year	33			23			3
Cash and cash equivalents at end of year	$	346		$	33		$	23

The accompanying notes are an integral part of this financial statement schedule.

Schedule I

BERKSHIRE HATHAWAY ENERGY COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

Basis of Presentation - The condensed financial information of BHE investments in subsidiaries are presented under the equity method of accounting. Under this method, the assets and liabilities of subsidiaries are not consolidated. The investments in subsidiaries are recorded in the Condensed Balance Sheets. The income from operations of subsidiaries is reported on a net basis as equity income in the Condensed Statements of Operations.

Other investments - BHE's investment in BYD Company Limited ("BYD") common stock is accounted for as an available-for-sale security with changes in fair value recognized in AOCI. As of December 31, 2017 and 2016, the fair value of BHE's investment in BYD common stock was $1,961 million and $1,185 million, respectively, which resulted in an unrealized gain of $1,729 million and $953 million as of December 31, 2017 and 2016, respectively.

Dividends and distributions from subsidiaries - Cash dividends paid to BHE by its subsidiaries for the years ended December 31, 2017, 2016 and 2015 were $3.0 billion for each of the three years. In January and February 2018, BHE received cash dividends from its subsidiaries totaling $158 million.

Guarantees and commitments - BHE has issued guarantees up to a maximum of $236 million in support of various obligations of consolidated subsidiaries and commitments, subject to satisfaction of certain specified conditions, to provide equity contributions in support of renewable tax equity investments totaling $265 million.

See the notes to the consolidated BHE financial statements in Part II, Item 8 for other disclosures regarding long-term obligations (Notes 8, 9 and 10) and shareholders' equity (Note 17).

MidAmerican Funding LLC [Member]

Condensed Financial Statements, Captions [Line Items]

Condensed Financial Statements [Text Block]

MIDAMERICAN FUNDING, LLC

PARENT COMPANY ONLY

NOTES TO CONDENSED FINANCIAL STATEMENTS

Incorporated by reference are MidAmerican Funding, LLC and Subsidiaries Consolidated Statements of Changes in Equity for the three years ended December 31, 2017 in Part II, Item 8.

Basis of Presentation - The condensed financial information of MidAmerican Funding, LLC's ("MidAmerican Funding's") investments in subsidiaries is presented under the equity method of accounting. Under this method, the assets and liabilities of subsidiaries are not consolidated. The investments in and advances to subsidiaries are recorded on the Condensed Balance Sheets. The income from operations of the subsidiaries is reported on a net basis as equity in undistributed earnings of subsidiary companies on the Condensed Statements of Operations.

Payable to Affiliate - MHC, Inc. ("MHC") settles all obligations of MidAmerican Funding including primarily interest costs on, and repayments of, MidAmerican Funding's long-term debt. Net amounts paid by MHC on behalf of MidAmerican Funding totaled $130 million, $13 million and $13 million for the years 2017, 2016 and 2015, respectively.

See the notes to the consolidated MidAmerican Funding financial statements in Part II, Item 8 for other disclosures.