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Income Taxes
12 Months Ended
Dec. 31, 2023
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
The Company's provision for income taxes has been computed on a stand-alone basis. Berkshire Hathaway includes the Company in its consolidated U.S. federal and Iowa state income tax returns and the majority of the Company's U.S. federal income tax is remitted to or received from Berkshire Hathaway. The Company had a current income tax receivable from Berkshire Hathaway of $96 million and a current income tax payable to Berkshire Hathaway of $113 million for federal income tax as of December 31, 2023 and 2022, respectively. In July 2022, the Company amended its tax allocation agreement with Berkshire Hathaway, which changed how state tax attributes will be settled with respect to state income tax returns that Berkshire Hathaway includes the Company. As a result, the Company no longer expects to receive the cash benefits from the state of Iowa net operating loss carryforward previously recorded as a long-term income tax receivable from Berkshire Hathaway as a component of BHE's shareholders' equity, and recognized a noncash distribution of $744 million to retained earnings.

Income tax expense (benefit) consists of the following for the years ended December 31 (in millions):
202320222021
Current:
Federal$(1,650)$(1,463)$(1,701)
State118 (65)(177)
Foreign90 79 100 
(1,442)(1,449)(1,778)
Deferred:
Federal(114)(408)1,037 
State(275)(49)(476)
Foreign33 (5)89 
(356)(462)650 
Investment tax credits99 (5)(4)
Total$(1,699)$(1,916)$(1,132)
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:
202320222021
Federal statutory income tax rate21 %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)— 
Equity loss(3)(3)(1)
Other, net— 
Effective income tax rate(87)%(136)%(21)%

Income tax credits relate primarily to production tax credits ("PTC") from wind- and solar-powered generating facilities owned by MidAmerican Energy, PacifiCorp and BHE Renewables. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-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- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the years ended December 31, 2023, 2022 and 2021 totaled $1.7 billion, $1.7 billion, and $1.4 billion, respectively.

Tax rate change - deferred (foreign) includes a deferred income tax charge of $45 million in 2023, related to the United Kingdom's Energy Profits Levy. The Energy Profits Levy increased from 25% to 35%, effective January 1, 2023. It also includes a deferred income tax charge of $105 million in 2021, related to the United Kingdom's corporate income tax rate. The United Kingdom's rate increased from 19% to 25%, effective April 1, 2023, through legislation enacted in June 2021.

The net deferred income tax liability consists of the following as of December 31 (in millions):
20232022
Deferred income tax assets:
Regulatory liabilities$1,248 $1,323 
Federal, state and foreign carryforwards774 812 
AROs318 283 
Loss contingency
431 109 
Other629 632 
Total deferred income tax assets3,400 3,159 
Valuation allowances(142)(187)
Total deferred income tax assets, net3,258 2,972 
Deferred income tax liabilities:
Property-related items(12,596)(12,244)
Investments(1,574)(1,998)
Regulatory assets(1,034)(898)
Other(491)(510)
Total deferred income tax liabilities(15,695)(15,650)
Net deferred income tax liability$(12,437)$(12,678)
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):
FederalStateForeignTotal
Net operating loss carryforwards(1)
$119 $9,850 $688 $10,657 
Deferred income taxes on net operating loss carryforwards25 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.

The U.S. Internal Revenue Service has closed or effectively settled its examination of the Company's income tax returns through December 31, 2013. The statute of limitations for the Company's income tax returns have expired for certain states through December 31, 2011, and for other states through December 31, 2019, except for the impact of any federal audit adjustments. The closure of examinations, or the expiration of the statute of limitations, for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.

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):
20232022
Beginning balance$68 $97 
Additions based on tax positions related to the current year10 15 
Additions for tax positions of prior years— 
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(9)
Ending balance$73 $68 

As of December 31, 2023 and 2022, the Company had unrecognized tax benefits totaling $88 million and $79 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.
PAC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
The effective tax rate for the year ended December 31, 2023, is 54% and results from a $553 million income tax benefit associated with a $1,021 million pre-tax loss primarily related to a $1,677 million increase in wildfire loss accruals, net of expected insurance recoveries as described in Note 14. The $553 million income tax benefit is primarily comprised of a $214 million benefit, or 21%, from the application of the federal statutory income tax rate to the pre-tax loss, a $180 million benefit, or 18%, from federal income tax credits, a $111 million benefit, or 11%, from effects of ratemaking and a $41 million benefit, or 4%, from state income tax.
Income tax expense (benefit) consists of the following for the years ended December 31 (in millions):
2023 20222021
Current:
Federal$(324)$(216)$(150)
State(5)(3)
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)

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:
202320222021
Federal statutory income tax rate21 %21 %21 %
State income taxes, net of federal income tax benefit
Effects of ratemaking(1)
11 (12)(14)
Federal income tax credits
18 (22)(20)
Valuation allowance— 
Other(1)— 
Effective income tax rate54 %(7)%(10)%

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

Income tax credits relate primarily to production tax credits ("PTC") earned by PacifiCorp's wind-powered generating facilities. Federal renewable electricity PTCs 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. PTCs for the years ended December 31, 2023, 2022 and 2021 totaled $180 million, $185 million and $164 million, respectively.
The net deferred income tax liability consists of the following as of December 31 (in millions):
20232022
Deferred income tax assets:
Regulatory liabilities$643 $724 
Employee benefits51 59 
State carryforwards84 73 
Loss contingencies429 107 
AROs
85 79 
Other117 80 
  Total deferred income tax assets1,409 1,122 
Valuation allowances(24)(35)
Total deferred income tax assets, net1,385 1,087 
Deferred income tax liabilities:
Property-related items
(3,704)(3,612)
Regulatory assets(632)(462)
Other(134)(165)
Total deferred income tax liabilities(4,470)(4,239)
Net deferred income tax liability$(3,085)$(3,152)

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

The U.S. Internal Revenue Service has closed or effectively settled its examination of PacifiCorp's income tax returns through December 31, 2013. The statute of limitations for PacifiCorp's income tax returns have expired for certain states through December 31, 2011, and for Idaho through December 31, 2019, except for the impact of any federal audit adjustments. The closure of examinations, or the expiration of the statute of limitations, for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.
MEC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
MidAmerican Energy's income tax expense (benefit) consists of the following for the years ended December 31 (in millions):
202320222021
Current:
Federal$(755)$(769)$(736)
State(28)(34)(92)
(783)(803)(828)
Deferred:
Federal109 77 189 
State(18)(43)(35)
91 34 154 
Investment tax credits(1)(1)(1)
Total$(693)$(770)$(675)

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:
202320222021
Federal statutory income tax rate21 %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)(1)
Effective income tax rate(240)%(403)%(308)%

Income tax credits relate primarily to production tax credits ("PTC") earned by MidAmerican Energy's wind- and solar-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-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- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the years ended December 31, 2023, 2022 and 2021 totaled $681 million, $710 million and $574 million, respectively.
MidAmerican Energy's net deferred income tax liability consists of the following as of December 31 (in millions):
20232022
Deferred income tax assets:
Regulatory liabilities$218 $194 
Asset retirement obligations204 191 
State carryforwards68 61 
Revenue sharing34 87 
Employee benefits25 37 
Other68 24 
Total deferred income tax assets617 594 
Valuation allowances(2)(2)
Total deferred income tax assets, net615 592 
Deferred income tax liabilities:
Property-related items
(3,972)(3,895)
Regulatory assets(134)(128)
Other(3)(2)
Total deferred income tax liabilities(4,109)(4,025)
Net deferred income tax liability$(3,494)$(3,433)

As of December 31, 2023, MidAmerican Energy's state tax carryforwards, principally related to $1 billion of net operating losses, expire at various intervals between 2024 and 2042.

The U.S. Internal Revenue Service has closed or effectively settled its examination of MidAmerican Energy's income tax returns through December 31, 2013. The statute of limitations for MidAmerican Energy's income tax returns have expired for certain states through December 31, 2011, and for other states through December 31, 2019, except for the impact of any federal audit adjustments. The closure of examinations, or the expiration of the statute of limitations, for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.

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):
20232022
Beginning balance$16 $13 
Additions based on tax positions related to the current year10 15 
Interest
— 
Reductions based on tax positions related to the current year(5)(12)
Ending balance$22 $16 

As of December 31, 2023, MidAmerican Energy had unrecognized tax benefits totaling $48 million that, if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits, other than applicable interest and penalties, would not affect MidAmerican Energy's effective income tax rate.
MidAmerican Funding, LLC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
MidAmerican Funding's income tax expense (benefit) consists of the following for the years ended December 31 (in millions):
202320222021
Current:
Federal$(756)$(773)$(739)
State(29)(36)(94)
(785)(809)(833)
Deferred:
Federal109 77 189 
State(18)(43)(35)
91 34 154 
Investment tax credits(1)(1)(1)
Total$(695)$(776)$(680)

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:
202320222021
Federal statutory income tax rate21 %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)(2)
Effective income tax rate(244)%(454)%(335)%
Income tax credits relate primarily to production tax credits ("PTC") earned by MidAmerican Energy's wind- and solar-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-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- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the years ended December 31, 2023, 2022 and 2021 totaled $681 million, $710 million and $574 million, respectively.

MidAmerican Funding's net deferred income tax liability consists of the following as of December 31 (in millions):
20232022
Deferred income tax assets:
Regulatory liabilities$218 $194 
Asset retirement obligations204 192 
State carryforwards68 61 
Revenue sharing34 87 
Employee benefits25 37 
Other69 24 
Total deferred income tax assets618 595 
Valuation allowances(2)(2)
Total deferred income tax assets, net616 593 
Deferred income tax liabilities:
Property-related items
(3,972)(3,895)
Regulatory assets(134)(128)
Other(2)(1)
Total deferred income tax liabilities(4,108)(4,024)
Net deferred income tax liability$(3,492)$(3,431)

As of December 31, 2023, MidAmerican Funding's state tax carryforwards, principally related to $1 billion of net operating losses, expire at various intervals between 2024 and 2042.

The U.S. Internal Revenue Service has closed or effectively settled its examination of MidAmerican Funding's income tax returns through December 31, 2013. The statute of limitations for MidAmerican Funding's income tax returns have expired for certain states through December 31, 2011, and for other states through December 31, 2019, except for the impact of any federal audit adjustments. The closure of examinations, or the expiration of the statute of limitations, for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.

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):
20232022
Beginning balance$16 $13 
Additions based on tax positions related to the current year10 15 
Interest
— 
Reductions based on tax positions related to the current year(5)(12)
Ending balance$22 $16 

As of December 31, 2023, MidAmerican Funding had unrecognized tax benefits totaling $48 million that, if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits, other than applicable interest and penalties, would not affect MidAmerican Funding's effective income tax rate.
NPC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
Income tax expense consists of the following for the years ended December 31 (in millions):
202320222021
Current – Federal$(4)$(13)$37 
Deferred – Federal(74)49 — 
Investment tax credits100 — — 
Total income tax expense$22 $36 $37 

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:
 202320222021
Federal statutory income tax rate21 %21 %21 %
Effects of ratemaking(13)(11)(11)
Other— 
Effective income tax rate%11 %11 %

The net deferred income tax liability consists of the following as of December 31 (in millions):
 20232022
Deferred income tax assets:  
Regulatory liabilities$195 $186 
Operating and finance leases66 68 
Customer advances38 27 
Unamortized contract value14 20 
Other
Total deferred income tax assets322 310 
Deferred income tax liabilities:
Property-related items
(828)(821)
Regulatory assets(245)(273)
Operating and finance leases(62)(65)
Other(23)(26)
Total deferred income tax liabilities(1,158)(1,185)
Net deferred income tax liability$(836)$(875)

The U.S. Internal Revenue Service has closed or effectively settled its examination of Nevada Power's income tax return through the short year ended December 31, 2013. The closure of examinations, or the expiration of the statute of limitations, may not preclude the U.S. Internal Revenue Service from adjusting the federal net operating loss carryforward utilized in a year for which the statute of limitations is not closed.
SPPC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
Income tax expense consists of the following for the years ended December 31 (in millions):
202320222021
Current – Federal$72 $(12)$
Deferred – Federal(57)31 13 
Investment tax credits— — 
Total income tax expense$16 $19 $18 

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:
 202320222021
Federal statutory income tax rate21 %21 %21 %
Effects of ratemaking(9)(7)(8)
Effective income tax rate12 %14 %13 %

The net deferred income tax liability consists of the following as of December 31 (in millions):
 20232022
Deferred income tax assets:  
Regulatory liabilities$62 $63 
Operating and finance leases25 26 
Customer advances16 17 
Unamortized contract value
Other
Total deferred income tax assets111 118 
Deferred income tax liabilities:
Property-related items
(376)(387)
Regulatory assets(100)(135)
Operating and finance leases(24)(25)
Other(15)(16)
Total deferred income tax liabilities(515)(563)
Net deferred income tax liability$(404)$(445)

The U.S. Internal Revenue Service has closed or effectively settled its examination of Sierra Pacific's income tax return through the short year ended December 31, 2013. The closure of examinations, or the expiration of the statute of limitations, may not preclude the U.S. Internal Revenue Service from adjusting the federal net operating loss carryforward utilized in a year for which the statute of limitations is not closed.
EEGH  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
Income tax expense (benefit) consists of the following for the years ended December 31 (in millions):

202320222021
Current:
Federal$(236)$12 $(47)
State(7)29 (21)
(243)41 (68)
Deferred:
Federal357 88 129 
State(4)38 56 
353 126 185 
Total$110 $167 $117 

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:

202320222021
Federal statutory income tax rate21 %21 %21 %
State income tax, net of federal income tax benefit(1)
Equity interest
Effects of ratemaking— (1)
Noncontrolling interest(9)(10)(11)
Other, net— — 
Effective income tax rate13 %18 %16 %

For the year ended December 31, 2023, Eastern Energy Gas' reconciliation of the federal statutory income tax rate to the effective income tax rate is driven primarily by the absence of tax on noncontrolling interest.
The net deferred income tax liability consists of the following as of December 31 (in millions):

20232022
Deferred income tax assets:
Federal and state carryforwards$22 $23 
Employee benefits29 22 
Intangibles98 112 
Derivatives and hedges13 16 
Deferred state income taxes24 — 
Other
Total deferred income tax assets190 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.

As of December 31, 2023, Eastern Energy Gas' state tax carryforwards, entirely related to $22 million of net operating losses, expire at various intervals between 2036 and indefinite.

The U.S. Internal Revenue Service has not closed or effectively settled an examination of Eastern Energy Gas' income tax returns for any tax years beginning on or after November 1, 2020. The statute of limitations for Eastern Energy Gas' states remains open for periods beginning on or after November 1, 2020. The closure of examinations, or the expiration of the statute of limitations, for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.
EGTS  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
Income tax expense (benefit) consists of the following for the years ended December 31 (in millions):

202320222021
Current:
Federal$(28)$$(22)
State(12)12 (10)
(40)17 (32)
Deferred:
Federal91 64 67 
State28 28 26 
119 92 93 
Total$79 $109 $61 

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:

202320222021
Federal statutory income tax rate21 %21 %21 %
State income tax, net of federal income tax benefit
Other, net— (1)(1)
Effective income tax rate25 %29 %28 %

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

20232022
Deferred income tax assets:
Federal and state carryforwards$$
Employee benefits26 22 
Intangibles and goodwill252 265 
Derivatives and hedges10 11 
Other
Total deferred income tax assets298 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.
As of December 31, 2023, EGTS' state tax carryforwards, entirely related to $5 million of net operating losses, expire at various intervals between 2036 and indefinite.

The U.S. Internal Revenue Service has not closed or effectively settled an examination of EGTS' income tax returns for any tax years beginning on or after November 1, 2020. The statute of limitations for EGTS' states remains open for periods beginning on or after November 1, 2020. The closure of examinations, or the expiration of the statute of limitations, for state filings may not preclude the state from adjusting the state net operating loss carryforward utilized in a year for which the statute of limitations is not closed.