Condensed Financial Statements (Notes)

12 Months Ended

Dec. 31, 2016

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)

	2016			2015
ASSETS
Current assets:
Cash and cash equivalents	$	33		$	23
Accounts receivable	21			16
Notes receivable - affiliate	105			—
Income tax receivable	—			167
Other current assets	2			2
Total current assets	161			208
Investments in subsidiaries	33,400			32,505
Other investments	1,338			1,389
Goodwill	1,221			1,221
Other assets	1,171			1,340
Total assets	$	37,291		$	36,663
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and other current liabilities	$	357		$	306
Notes payable - affiliate	194			—
Short-term debt	834			253
Current portion of BHE senior debt	400			—
Total current liabilities	1,785			559
BHE senior debt	7,418			7,814
BHE junior subordinated debentures	944			2,944
Notes payable - affiliate	1,859			1,985
Other long-term liabilities	942			946
Total liabilities	12,948			14,248
Equity:
BHE shareholders' equity:
Common stock - 115 shares authorized, no par value, 77 shares issued and outstanding	—			—
Additional paid-in capital	6,390			6,403
Retained earnings	19,448			16,906
Accumulated other comprehensive loss, net	(1,511		)	(908		)
Total BHE shareholders' equity	24,327			22,401
Noncontrolling interest	16			14
Total equity	24,343			22,415
Total liabilities and equity	$	37,291		$	36,663

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)

	2016			2015			2014
Operating costs and expenses:
General and administration	$	51		$	58		$	51
Depreciation and amortization	4			3			3
Total operating costs and expenses	55			61			54
Operating loss	(55		)	(61		)	(54		)
Other income (expense):
Interest expense	(527		)	(556		)	(476		)
Other, net	37			14			4
Total other income (expense)	(490		)	(542		)	(472		)
Loss before income tax benefit and equity income	(545		)	(603		)	(526		)
Income tax benefit	(285		)	(330		)	(221		)
Equity income	2,805			2,646			2,402
Net income	2,545			2,373			2,097
Net income attributable to noncontrolling interest	3			3			2
Net income attributable to BHE shareholders	$	2,542		$	2,370		$	2,095

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)

	2016			2015			2014
Net income	$	2,545		$	2,373		$	2,097
Other comprehensive loss, net of tax	(603		)	(414		)	(397		)
Comprehensive income	1,942			1,959			1,700
Comprehensive income attributable to noncontrolling interests	3			3			2
Comprehensive income attributable to BHE shareholders	$	1,939		$	1,956		$	1,698

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)

	2016			2015			2014
Cash flows from operating activities	$	2,760		$	2,528		$	1,937
Cash flows from investing activities:
Investments in subsidiaries	(1,080		)	(1,506		)	(4,937		)
Purchases of investments	(24		)	(36		)	(56		)
Proceeds from sale of investments	20			47			35
Notes receivable from affiliate, net	(307		)	19			(55		)
Other, net	(5		)	(7		)	(7		)
Net cash flows from investing activities	(1,396		)	(1,483		)	(5,020		)
Cash flows from financing activities:
Proceeds from BHE senior debt	—			—			1,478
Proceeds from BHE junior subordinated debentures	—			—			1,500
Proceeds from issuance of BHE common stock	—			—			—
Repayments of BHE senior debt	—			—			(250		)
Repayments of BHE subordinated debt	(2,000		)	(850		)	(300		)
Common stock purchases	—			(36		)	—
Net proceeds from (repayments of) short-term debt	581			(142		)	395
Notes payable to affiliate, net	69			4			(30		)
Other, net	(4		)	(1		)	1
Net cash flows from financing activities	(1,354		)	(1,025		)	2,794
Net change in cash and cash equivalents	10			20			(289		)
Cash and cash equivalents at beginning of year	23			3			292
Cash and cash equivalents at end of year	$	33		$	23		$	3

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, 2016 and 2015, the fair value of BHE's investment in BYD common stock was $1,185 million and $1,238 million, respectively, which resulted in a unrealized gain of $953 million and $1,006 million as of December 31, 2016 and 2015, respectively.

Dividends and distributions from subsidiaries - Cash dividends paid to BHE by its subsidiaries for the years ended December 31, 2016, 2015 and 2014 were $3.0 billion, $3.0 billion and $2.3 billion, respectively. In January and February 2017, BHE received cash dividends from its subsidiaries totaling $160 million.

Guarantees and commitments - BHE has issued guarantees up to a maximum of $336 million in support of various obligations of consolidated subsidiaries and commitments to provide equity contributions in support of renewable tax equity investments totaling $288 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, 2016 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 $13 million, $13 million and $13 million for the years 2016, 2015 and 2014, respectively.

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