Pension plans (Tables)
|
12 Months Ended |
Dec. 31, 2018 |
|---|
| Retirement Benefits [Abstract] |
|
| Schedule of net periodic pension expense |
The components of our net periodic pension expense
for each of the three years ending December 31, 2018 were as
follows (in millions).
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2018 |
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2017 |
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|
2016 |
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|
Service cost
|
|
$ |
271 |
|
|
$ |
273 |
|
|
$ |
282 |
|
|
Interest cost
|
|
|
593 |
|
|
|
635 |
|
|
|
691 |
|
|
Expected return on plan assets
|
|
|
(988 |
) |
|
|
(939 |
) |
|
|
(908 |
) |
|
Amortization of actuarial losses and other
|
|
|
188 |
|
|
|
157 |
|
|
|
148 |
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|
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|
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|
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Net periodic pension expense
|
|
$ |
64 |
|
|
$ |
126 |
|
|
$ |
213 |
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| Schedule of changes in projected benefit obligations, changes in plan assets and net funded status |
Reconciliations of the changes in plan assets and
PBOs related to BHE’s pension plans and all other pension
plans for each of the two years ending December 31, 2018 are
in the following tables (in millions). The costs of pension plans
covering employees of certain regulated subsidiaries of BHE are
generally recoverable through the regulated rate making
process.
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2018 |
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2017 |
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BHE |
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All other |
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Consolidated |
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BHE |
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All other |
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Consolidated |
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Benefit obligations
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|
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Accumulated benefit obligation end of year
|
|
$ |
4,346 |
|
|
$ |
11,540 |
|
|
$ |
15,886 |
|
|
$ |
4,920 |
|
|
$ |
12,604 |
|
|
$ |
17,524 |
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|
|
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PBO beginning of year
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|
$ |
5,207 |
|
|
$ |
13,617 |
|
|
$ |
18,824 |
|
|
$ |
5,077 |
|
|
$ |
12,673 |
|
|
$ |
17,750 |
|
|
Service cost
|
|
|
40 |
|
|
|
231 |
|
|
|
271 |
|
|
|
47 |
|
|
|
226 |
|
|
|
273 |
|
|
Interest cost
|
|
|
161 |
|
|
|
432 |
|
|
|
593 |
|
|
|
174 |
|
|
|
461 |
|
|
|
635 |
|
|
Benefits paid
|
|
|
(208 |
) |
|
|
(633 |
) |
|
|
(841) |
|
|
|
(271 |
) |
|
|
(626 |
) |
|
|
(897 |
) |
|
Settlements
|
|
|
(301 |
) |
|
|
(133 |
) |
|
|
(434) |
|
|
|
(146 |
) |
|
|
(95 |
) |
|
|
(241 |
) |
|
Actuarial (gains) or losses and other
|
|
|
(348 |
) |
|
|
(1,143 |
) |
|
|
(1,491) |
|
|
|
326 |
|
|
|
978 |
|
|
|
1,304 |
|
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|
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PBO end of year
|
|
$ |
4,551 |
|
|
$ |
12,371 |
|
|
$ |
16,922 |
|
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$ |
5,207 |
|
|
$ |
13,617 |
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$ |
18,824 |
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| Plan assets |
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Plan assets beginning of year
|
|
$ |
5,129 |
|
|
$ |
11,885 |
|
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$ |
17,014 |
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|
$ |
4,694 |
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|
$ |
10,703 |
|
|
$ |
15,397 |
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|
Employer contributions
|
|
|
98 |
|
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|
495 |
|
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|
593 |
|
|
|
122 |
|
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|
159 |
|
|
|
281 |
|
|
Benefits paid
|
|
|
(208 |
) |
|
|
(633 |
) |
|
|
(841) |
|
|
|
(271 |
) |
|
|
(626 |
) |
|
|
(897 |
) |
|
Actual return on plan assets
|
|
|
(191 |
) |
|
|
(949 |
) |
|
|
(1,140) |
|
|
|
535 |
|
|
|
1,601 |
|
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|
2,136 |
|
|
Settlements
|
|
|
(324 |
) |
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|
(132 |
) |
|
|
(456) |
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|
(159 |
) |
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|
(76 |
) |
|
|
(235 |
) |
|
Other
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|
(119 |
) |
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|
(92 |
) |
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(211) |
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|
208 |
|
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|
124 |
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|
332 |
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Plan assets end of year
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$ |
4,385 |
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$ |
10,574 |
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$ |
14,959 |
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$ |
5,129 |
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$ |
11,885 |
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$ |
17,014 |
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Funded status – net liability
|
|
$ |
166 |
|
|
$ |
1,797 |
|
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$ |
1,963 |
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$ |
78 |
|
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$ |
1,732 |
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$ |
1,810 |
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| Schedule of weighted average assumptions |
Weighted average assumptions used in determining
PBO and net periodic pension expense were as follows.
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| |
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2018 |
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|
2017 |
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|
2016 |
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|
Discount rate applicable to pension benefit obligations
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|
3.9% |
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|
3.3% |
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3.8% |
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Expected long-term rate of return on plan assets
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|
6.4 |
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6.4 |
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|
6.1 |
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Rate of compensation increase
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|
2.6 |
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|
2.8 |
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3.0 |
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Discount rate applicable to net periodic pension expense
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3.4 |
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|
3.9 |
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4.2 |
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| Schedule of fair value measurements by major categories of plan assets |
Fair value measurements of plan assets as of
December 31, 2018 and 2017 follow (in millions).
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Fair Value |
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Investment funds
and partnerships at
net asset value |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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December 31, 2018
|
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Cash and cash equivalents
|
|
$ |
1,328 |
|
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$ |
1,197 |
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$ |
131 |
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$ |
— |
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$ |
— |
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|
Equity securities
|
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|
7,671 |
|
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|
7,499 |
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|
22 |
|
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|
150 |
|
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|
— |
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Government obligations
|
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|
1,727 |
|
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|
1,654 |
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|
73 |
|
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|
— |
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|
— |
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|
Other fixed maturity securities
|
|
|
836 |
|
|
|
172 |
|
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|
631 |
|
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|
33 |
|
|
|
— |
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|
Investment funds and other
|
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|
3,397 |
|
|
|
170 |
|
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|
1,042 |
|
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|
273 |
|
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|
1,912 |
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|
|
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$ |
14,959 |
|
|
$ |
10,692 |
|
|
$ |
1,899 |
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$ |
456 |
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$ |
1,912 |
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December 31, 2017
|
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Cash and cash equivalents
|
|
$ |
738 |
|
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$ |
594 |
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$ |
144 |
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$ |
— |
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$ |
— |
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|
Equity securities
|
|
|
9,824 |
|
|
|
9,641 |
|
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|
23 |
|
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|
160 |
|
|
|
— |
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|
Government obligations
|
|
|
1,536 |
|
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|
1,497 |
|
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|
39 |
|
|
|
— |
|
|
|
— |
|
|
Other fixed maturity securities
|
|
|
799 |
|
|
|
148 |
|
|
|
619 |
|
|
|
32 |
|
|
|
— |
|
|
Investment funds and other
|
|
|
4,117 |
|
|
|
150 |
|
|
|
1,501 |
|
|
|
274 |
|
|
|
2,192 |
|
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|
|
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|
|
|
|
|
|
|
|
|
|
$ |
17,014 |
|
|
$ |
12,030 |
|
|
$ |
2,326 |
|
|
$ |
466 |
|
|
$ |
2,192 |
|
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| Schedule of pension plan amounts recognized In accumulated other comprehensive income |
A reconciliation of
the pre-tax accumulated
other comprehensive income (loss) related to defined benefit
pension plans for each of the two years ending December 31,
2018 follows (in millions).
|
|
|
|
|
|
|
|
|
| |
|
2018 |
|
|
2017 |
|
|
Balance beginning of year
|
|
$ |
(614 |
) |
|
$ |
(839 |
) |
|
Amount included in net periodic pension expense
|
|
|
116 |
|
|
|
155 |
|
|
Actuarial gains (losses) and other
|
|
|
(686 |
) |
|
|
70 |
|
|
|
|
|
|
|
|
|
|
|
Balance end of year
|
|
$ |
(1,184 |
) |
|
$ |
(614 |
) |
|
|
|
|
|
|
|
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|