Income Taxes (Notes)

12 Months Ended

Dec. 31, 2015

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

Income Taxes

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



	2015			2014			2013
Current:
Federal	$	(929	)	$	(1,872	)	$	(985	)
State	29			(3		)	(2		)
Foreign	84			129			121
	(816		)	(1,746		)	(866		)
Deferred:
Federal	1,310			2,296			1,306
State	(53		)	37			(247		)
Foreign	17			11			(59		)
	1,274			2,344			1,000

Investment tax credits	(8		)	(9		)	(4		)
Total	$	450		$	589		$	130

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:



	2015		2014		2013

Federal statutory income tax rate	35	%	35	%	35	%
Income tax credits	(11	)	(10	)	(14	)
State income tax, net of federal income tax benefit	(1	)	1		(9	)
Income tax effect of foreign income	(7	)	(3	)	(6	)
Equity income (loss)	2		2		(1	)
Other, net	(2	)	(2	)	2
Effective income tax rate	16	%	23	%	7	%

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.

State income tax benefits decreased for 2014 compared to 2013 primarily due to one-time deferred income tax benefits recognized from a reduction in the apportioned state tax rate of $161 million, in part, as a result of BHE's acquisition of NV Energy.

Income tax effect of foreign income includes, among other items, deferred income tax benefits of $39 million in 2015 and $54 million in 2013 related to the enactment of reductions in the United Kingdom corporate income tax rate. In November 2015 the corporate tax rate was reduced from 20% to 19% effective April 1, 2017, with a further reduction to 18% effective April 1, 2020. In July 2013 the corporate income tax rate was reduced from 23% to 21% effective April 1, 2014, with a further reduction to 20% effective April 1, 2015.

Berkshire Hathaway includes the Company in its United States federal income tax return. As of December 31, 2015 and 2014, the Company had current income taxes receivable from Berkshire Hathaway of $286 million and $1.1 billion, respectively.

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



	2015			2014
Deferred income tax assets:
Federal, state and foreign carryforwards	$	865		$	781
Regulatory liabilities	834			812
AROs	317			249
Employee benefits	190			187
Derivative contracts	83			62
Other	815			781
Total deferred income tax assets	3,104			2,872
Valuation allowances	(35		)	(23		)
Total deferred income tax assets, net	3,069			2,849

Deferred income tax liabilities:
Property-related items	(13,157		)	(11,989		)
Regulatory assets	(1,446		)	(1,374		)
Investments	(852		)	(699		)
Other	(299		)	(301		)
Total deferred income tax liabilities	(15,754		)	(14,363		)
Net deferred income tax liability	$	(12,685	)	$	(11,514	)

The following table provides the Company's net operating loss and tax credit carryforwards and expiration dates as of December 31, 2015 (in millions):



	Federal		State
Net operating loss carryforwards⁽¹⁾	$	185	$	10,084
Deferred income taxes on net operating loss carryforwards	$	69	$	589
Expiration dates	2023-2026		2016-2035

Foreign and other tax credits⁽²⁾	$	176	$	31
Expiration dates	2023- indefinite		2016- 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 net operating loss carry forwards were generated prior to Berkshire Hathaway Inc.'s ownership and will begin to expire in 2022.


(2)	Includes $102 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, 2015 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) examinations of PacifiCorp's state returns, which have been closed through March 31, 2006 (except for the December 1995 and 1997 tax years in Utah). Examinations have been closed in the United Kingdom through at least 2010, in Canada through at least 2008 and in the Philippines through at least 2011.

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):



	2015			2014

Beginning balance	$	220		$	211
Additions based on tax positions related to the current year	3			11
Additions for tax positions of prior years	46			48
Reductions for tax positions of prior years	(58		)	(50		)
Statute of limitations	(6		)	(1		)
Settlements	(6		)	—
Interest and penalties	(1		)	1
Ending balance	$	198		$	220

As of December 31, 2015 and 2014, the Company had unrecognized tax benefits totaling $163 million and $188 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):



	2015			2014			2013

Current:
Federal	$	130		$	2		$	54
State	26			10			13
Total	156			12			67

Deferred:
Federal	148			260			204
State	29			43			29
Total	177			303			233

Investment tax credits	(5		)	(6		)	(3		)
Total income tax expense	$	328		$	309		$	297

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:



	2015		2014		2013

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	)	(7	)	(7	)
Other	—		—		(1	)
Effective income tax rate	32	%	31	%	30	%

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):



	2015			2014

Deferred income tax assets:
Regulatory liabilities	$	374		$	362
Employee benefits	189			184
Derivative contracts and unamortized contract values	94			79
State carryforwards	68			68
Loss contingencies	67			70
Asset retirement obligations	81			47
Other	88			92
	961			902
Deferred income tax liabilities:
Property, plant and equipment	(5,030		)	(4,780		)
Regulatory assets	(639		)	(647		)
Other	(42		)	(56		)
	(5,711		)	(5,483		)
Net deferred income tax liability	$	(4,750	)	$	(4,581	)

The following table provides PacifiCorp's net operating loss and tax credit carryforwards and expiration dates as of December 31, 2015 (in millions):



	State

Net operating loss carryforwards	$	1,416
Deferred income taxes on net operating loss carryforwards	$	52
Expiration dates	2016 - 2032

Tax credit carryforwards	$	16
Expiration dates	2016 - indefinite

The United States Internal Revenue Service has closed its examination of PacifiCorp's income tax returns through December 31, 2009. State agencies have closed their examinations of PacifiCorp's income tax returns through March 31, 2006, except for the December 31, 1995 and 1997 tax years in Utah.

As of December 31, 2015 and 2014, PacifiCorp had unrecognized tax benefits totaling $13 million and $14 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 consists of the following for the years ended December 31 (in millions):



	2015			2014			2013
Current:
Federal	$	(405	)	$	(401	)	$	(196	)
State	(10		)	(3		)	(10		)
	(415		)	(404		)	(206		)
Deferred:
Federal	281			299			101
State	(6		)	2			3
	275			301			104

Investment tax credits	(1		)	(1		)	(1		)
Total	$	(141	)	$	(104	)	$	(103	)

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



	2015		2014		2013

Federal statutory income tax rate	35	%	35	%	35	%
Income tax credits	(65	)	(59	)	(70	)
State income tax, net of federal income tax benefit	(3	)	—		(2	)
Effects of ratemaking	(12	)	(8	)	(3	)
Other, net	1		(1	)	(2	)
Effective income tax rate	(44	)%	(33	)%	(42	)%

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):



	2015			2014
Deferred income tax assets:
Regulatory liabilities	$	327		$	332
Employee benefits	66			68
Derivative contracts	29			30
Asset retirement obligations	214			185
Other	59			59
Total deferred income tax assets	695			674

Deferred income tax liabilities:
Depreciable property	(3,321		)	(2,945		)
Regulatory assets	(418		)	(366		)
Other	(17		)	(25		)
Total deferred income tax liabilities	(3,756		)	(3,336		)

Net deferred income tax liability	$	(3,061	)	$	(2,662	)

As of December 31, 2015, MidAmerican Energy has available $23 million of state carryforwards, principally related to $488 million of net operating losses, that expire at various intervals between 2016 and 2034.

The United States Internal Revenue Service has closed its examination of BHE's income tax returns through December 2009, including components related to MidAmerican Energy. In addition, state jurisdictions have closed their examinations of MidAmerican Energy's income tax returns through at least February 9, 2006, including Iowa and Illinois, which are closed through December 31, 2012, and December 31, 2008, respectively.

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):



	2015			2014

Beginning balance	$	26		$	29
Additions based on tax positions related to the current year	3			6
Additions for tax positions of prior years	47			38
Reductions based on tax positions related to the current year	(6		)	(4		)
Reductions for tax positions of prior years	(46		)	(40		)
Statute of limitations	(5		)	(3		)
Settlements	(6		)	—
Interest and penalties	(3		)	—
Ending balance	$	10		$	26

As of December 31, 2015, MidAmerican Energy had unrecognized tax benefits totaling $26 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 consists of the following for the years ended December 31 (in millions):



	2015			2014			2013
Current:
Federal	$	(408	)	$	(404	)	$	(200	)
State	(12		)	(4		)	(12		)
	(420		)	(408		)	(212		)
Deferred:
Federal	282			297			100
State	(5		)	2			3
	277			299			103

Investment tax credits	(1		)	(1		)	(1		)
Total	$	(144	)	$	(110	)	$	(110	)

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



	2015		2014		2013

Federal statutory income tax rate	35	%	35	%	35	%
Income tax credits	(67	)	(61	)	(75	)
State income tax, net of federal income tax benefit	(3	)	(1	)	(3	)
Effects of ratemaking	(12	)	(9	)	(3	)
Other, net	1		(1	)	(2	)
Effective income tax rate	(46	)%	(37	)%	(48	)%

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



	2015			2014
Deferred income tax assets:
Regulatory liabilities	$	327		$	332
Employee benefits	66			68
Derivative contracts	29			30
Asset retirement obligations	214			185
Other	68			70
Total deferred income tax assets	704			685

Deferred income tax liabilities:
Depreciable property	(3,326		)	(2,950		)
Regulatory assets	(418		)	(366		)
Other	(16		)	(25		)
Total deferred income tax liabilities	(3,760		)	(3,341		)

Net deferred income tax liability	$	(3,056	)	$	(2,656	)

As of December 31, 2015, MidAmerican Funding has available $23 million of state carryforwards, principally related to $488 million of net operating losses, that expire at various intervals between 2016 and 2034.

The United States Internal Revenue Service has closed its examination of BHE's income tax returns through December 2009, including components related to MidAmerican Funding. In addition, state jurisdictions have closed their examinations of MidAmerican Funding's income tax returns through at least February 9, 2006, including Iowa and Illinois, which are closed through December 31, 2012, and December 31, 2008, respectively.

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):



	2015			2014

Beginning balance	$	26		$	29
Additions based on tax positions related to the current year	4			6
Additions for tax positions of prior years	46			38
Reductions based on tax positions related to the current year	(6		)	(4		)
Reductions for tax positions of prior years	(46		)	(40		)
Statute of limitations	(5		)	(3		)
Settlements	(6		)	—
Interest and penalties	(3		)	—
Ending balance	$	10		$	26

As of December 31, 2015, MidAmerican Funding had unrecognized tax benefits totaling $27 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):



	2015			2014			2013

Current – Federal	$	—		$	—		$	(1	)
Deferred – Federal	163			131			96
Investment tax credits	(1		)	(1		)	(1		)
Total income tax expense	$	162		$	130		$	94

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:



	2015		2014		2013

Federal statutory income tax rate	35	%	35	%	35	%
Non-deductible BHE Merger related expenses	—		—		3
Effects of ratemaking	1		1		1
Effective income tax rate	36	%	36	%	39	%

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



	2015			2014
Deferred income tax assets:
Federal net operating loss and credit carryforwards	$	15		$	158
Capital and financial leases	174			178
Employee benefits	30			22
Regulatory liabilities	47			37
Other	39			57
Total deferred income tax assets	305			452
Valuation allowance	(5		)	(2		)
Total deferred income tax assets, net	300			450

Deferred income tax liabilities:
Property related items	(1,242		)	(1,175		)
Regulatory assets	(275		)	(341		)
Capital and financial leases	(169		)	(174		)
Other	(19		)	(29		)
Total deferred income tax liabilities	(1,705		)	(1,719		)
Net deferred income tax liability	$	(1,405	)	$	(1,269	)

The following table provides Nevada Power's federal net operating loss and tax credit carryforwards and expiration dates as of December 31, 2015 (in millions):



Net operating loss carryforwards	$	4
Deferred income taxes on federal net operating loss carryforwards	$	1
Expiration dates	2031 - 2035

Other tax credits	$	14
Expiration dates	2016 - 2035

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):



	2015			2014			2013

Current – Federal	$	—		$	—		$	(2	)
Deferred:
Federal	48			48			38
State	—			—			(2		)
Total deferred	48			48			36

Investment tax credits	(1		)	(1		)	(1		)
Total income tax expense	$	47		$	47		$	33

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:



	2015		2014		2013

Federal statutory income tax rate	35	%	35	%	35	%
Non-deductible BHE Merger related expenses	—		—		1
Effects of ratemaking	1		1		1
Other	—		(1	)	—
Effective income tax rate	36	%	35	%	37	%

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



	2015			2014
Deferred income tax assets:
Net operating loss and credit carryforwards	$	39		$	56
Employee benefit plans	25			22
Regulatory liabilities	19			21
Capital and financial lease liabilities	13			9
Customer Advances	8			7
Other	12			15
Total deferred income tax assets	$	116		$	130

Deferred income tax liabilities:
Property related items	$	(538	)	$	(478	)
Regulatory assets	(121		)	(147		)
Capital and financial leases	(13		)	(9		)
Other	(14		)	(20		)
Total deferred income tax liabilities	$	(686	)	$	(654	)
Net deferred income tax liability	$	(570	)	$	(524	)

The following table provides Sierra Pacific's federal net operating loss and tax credit carryforwards and expiration dates as of December 31, 2015 (in millions):



Net operating loss carryforwards	$	95
Deferred income taxes on federal net operating loss carryforwards	$	33
Expiration dates	2031 - 2035

Other tax credits	$	5
Expiration dates	2016 - 2035