XML 98 R57.htm IDEA: XBRL DOCUMENT v3.7.0.1
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents the Company's financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):
 
 
Input Levels for Fair Value Measurements
 
 
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
Other(1)
 
Total
As of June 30, 2017
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
$
2

 
$
26

 
$
96

 
$
(19
)
 
$
105

Interest rate derivatives
 
—

 
8

 
10

 
—

 
18

Mortgage loans held for sale
 
—

 
408

 
—

 
—

 
408

Money market mutual funds(2)
 
773

 
—

 
—

 
—

 
773

Debt securities:
 
 
 
 
 
 
 
 
 
 
United States government obligations
 
161

 
—

 
—

 
—

 
161

International government obligations
 
—

 
4

 
—

 
—

 
4

Corporate obligations
 
—

 
36

 
—

 
—

 
36

Municipal obligations
 
—

 
2

 
—

 
—

 
2

Agency, asset and mortgage-backed obligations
 
—

 
1

 
—

 
—

 
1

Equity securities:
 
 
 
 
 
 
 
 
 
 
United States companies
 
270

 
—

 
—

 
—

 
270

International companies
 
1,388

 
—

 
—

 
—

 
1,388

Investment funds
 
175

 
—

 
—

 
—

 
175

 
 
$
2,769


$
485


$
106


$
(19
)
 
$
3,341

Liabilities:
 
 

 
 

 
 

 
 

 
 

Commodity derivatives
 
$
(2
)

$
(211
)

$
(15
)

$
103

 
$
(125
)
Interest rate derivatives
 
—

 
(12
)
 
(2
)
 
—

 
(14
)
 
 
$
(2
)
 
$
(223
)
 
$
(17
)
 
$
103

 
$
(139
)
 
As of December 31, 2016
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
$
5

 
$
49

 
$
87

 
$
(22
)
 
$
119

Interest rate derivatives
 
—

 
16

 
7

 
—

 
23

Mortgage loans held for sale
 
—

 
359

 
—

 
—

 
359

Money market mutual funds(2)
 
586

 
—

 
—

 
—

 
586

Debt securities:
 
 
 
 
 
 
 
 
 
 
United States government obligations
 
161

 
—

 
—

 
—

 
161

International government obligations
 
—

 
3

 
—

 
—

 
3

Corporate obligations
 
—

 
36

 
—

 
—

 
36

Municipal obligations
 
—

 
2

 
—

 
—

 
2

Agency, asset and mortgage-backed obligations
 
—

 
2

 
—

 
—

 
2

Equity securities:
 
 
 
 
 
 
 
 
 
 
United States companies
 
250

 
—

 
—

 
—

 
250

International companies
 
1,190

 
—

 
—

 
—

 
1,190

Investment funds
 
147

 
—

 
—

 
—

 
147

 
 
$
2,339

 
$
467

 
$
94

 
$
(22
)
 
$
2,878

Liabilities:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
$
(2
)
 
$
(199
)
 
$
(27
)
 
$
96

 
$
(132
)
Interest rate derivatives
 
(1
)
 
(11
)
 
(1
)
 
—

 
(13
)
 
 
$
(3
)
 
$
(210
)
 
$
(28
)
 
$
96

 
$
(145
)

(1)
Represents netting under master netting arrangements and a net cash collateral receivable of $84 million and $74 million as of June 30, 2017 and December 31, 2016, respectively.
(2)
Amounts are included in cash and cash equivalents; other current assets; and noncurrent investments and restricted cash and investments on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.
Fair Value Assets and Liabilities Net Measured On Recurring Basis Unobservable Input Reconciliation
The following table reconciles the beginning and ending balances of the Company's assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):
 
Three-Month Periods
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
 
 
Interest
 
Auction
 
 
 
Interest
 
Auction
 
Commodity
 
Rate
 
Rate
 
Commodity
 
Rate
 
Rate
 
Derivatives
 
Derivatives
 
Securities
 
Derivatives
 
Derivatives
 
Securities
2017:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
72

 
$
9

 
$
—

 
$
60

 
$
6

 
$
—

Changes included in earnings
—

 
39

 
—

 
12

 
66

 
—

Changes in fair value recognized in OCI
—

 
—

 
—

 
(2
)
 
—

 
—

Changes in fair value recognized in net regulatory assets
(3
)
 
—

 
—

 
(2
)
 
—

 
—

Purchases
1

 
—

 
—

 
1

 
(2
)
 
—

Settlements
11

 
(40
)
 
—

 
12

 
(62
)
 
—

Ending balance
$
81

 
$
8

 
$
—

 
$
81

 
$
8

 
$
—


 
Three-Month Periods
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
 
 
Interest
 
Auction
 
 
 
Interest
 
Auction
 
Commodity
 
Rate
 
Rate
 
Commodity
 
Rate
 
Rate
 
Derivatives
 
Derivatives
 
Securities
 
Derivatives
 
Derivatives
 
Securities
2016:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
58

 
$
11

 
$
26

 
$
47

 
$
4

 
$
44

Changes included in earnings
(20
)
 
29

 
—

 
(1
)
 
54

 
—

Changes in fair value recognized in OCI
6

 
—

 
2

 
—

 
—

 
6

Changes in fair value recognized in net regulatory assets
(5
)
 
—

 
—

 
(11
)
 
—

 
—

Redemptions
—

 
—

 
(10
)
 
—

 
—

 
(32
)
Settlements
5

 
(26
)
 
—

 
9

 
(44
)
 
—

Ending balance
$
44

 
$
14

 
$
18

 
$
44

 
$
14

 
$
18
Fair Value, by Balance Sheet Grouping
The following table presents the carrying value and estimated fair value of the Company's long-term debt (in millions):
 
As of June 30, 2017
 
As of December 31, 2016
 
Carrying
 
Fair
 
Carrying
 
Fair
 
Value
 
Value
 
Value
 
Value
 
 
 
 
 
 
 
 
Long-term debt
$
36,048

 
$
41,340

 
$
36,116

 
$
40,718
PacifiCorp [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents PacifiCorp's financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):
 
 
Input Levels for Fair Value Measurements
 
 
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
Other(1) 
 
Total
As of June 30, 2017
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
$
—

 
$
10

 
$
—

 
$
(4
)
 
$
6

Money market mutual funds(2)
 
167

 
—

 
—

 
—

 
167

Investment funds
 
19

 
—

 
—

 
—

 
19

 
 
$
186

 
$
10

 
$
—

 
$
(4
)
 
$
192

 
 
 
 
 
 
 
 
 
 
 
Liabilities - Commodity derivatives
 
$
—

 
$
(109
)
 
$
—

 
$
77

 
$
(32
)
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2016
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
$
—

 
$
27

 
$
—

 
$
(7
)
 
$
20

Money market mutual funds(2)
 
13

 
—

 
—

 
—

 
13

Investment funds
 
17

 
—

 
—

 
—

 
17

 
 
$
30

 
$
27

 
$
—

 
$
(7
)
 
$
50

 
 
 
 
 
 
 
 
 
 
 
Liabilities - Commodity derivatives
 
$
—

 
$
(104
)
 
$
—

 
$
76

 
$
(28
)


(1)
Represents netting under master netting arrangements and a net cash collateral receivable of $73 million and $69 million as of June 30, 2017 and December 31, 2016, respectively.

(2)
Amounts are included in cash and cash equivalents, other current assets and other assets on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.
Fair Value, by Balance Sheet Grouping
PacifiCorp's long-term debt is carried at cost on the Consolidated Balance Sheets. The fair value of PacifiCorp's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of PacifiCorp's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of PacifiCorp's long-term debt (in millions):

 
 
As of June 30, 2017
 
As of December 31, 2016
 
 
Carrying
 
Fair
 
Carrying
 
Fair
 
 
Value
 
Value
 
Value
 
Value
 
 
 
 
 
 
 
 
 
Long-term debt
 
$
7,004

 
$
8,260

 
$
7,052

 
$
8,204
MidAmerican Energy Company [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents MidAmerican Energy's financial assets and liabilities recognized on the Balance Sheets and measured at fair value on a recurring basis (in millions):
 
 
Input Levels for Fair Value Measurements
 
 
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
Other(1)
 
Total
As of June 30, 2017:
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
$
—

 
$
2

 
$
2

 
$
(2
)
 
$
2

Money market mutual funds(2)
 
370

 
—

 
—

 
—

 
370

Debt securities:
 
 
 
 
 
 
 
 
 
 
United States government obligations
 
161

 
—

 
—

 
—

 
161

International government obligations
 
—

 
4

 
—

 
—

 
4

Corporate obligations
 
—

 
36

 
—

 
—

 
36

Municipal obligations
 
—

 
2

 
—

 
—

 
2

Agency, asset and mortgage-backed obligations
 
—

 
1

 
—

 
—

 
1

Equity securities:
 
 
 
 
 
 
 
 
 
 
United States companies
 
270

 
—

 
—

 
—

 
270

International companies
 
7

 
—

 
—

 
—

 
7

Investment funds
 
14

 
—

 
—

 
—

 
14

 
 
$
822

 
$
45

 
$
2

 
$
(2
)
 
$
867

 
 
 
 
 
 
 
 
 
 
 
Liabilities - commodity derivatives
 
$
—

 
$
(6
)
 
$
(3
)
 
$
3

 
$
(6
)
 
 
Input Levels for Fair Value Measurements
 
 
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
Other(1)
 
Total
As of December 31, 2016:
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
$
—

 
$
9

 
$
1

 
$
(2
)
 
$
8

Money market mutual funds(2)
 
1

 
—

 
—

 
—

 
1

Debt securities:
 
 
 
 
 
 
 
 
 
 
United States government obligations
 
161

 
—

 
—

 
—

 
161

International government obligations
 
—

 
3

 
—

 
—

 
3

Corporate obligations
 
—

 
36

 
—

 
—

 
36

Municipal obligations
 
—

 
2

 
—

 
—

 
2

Agency, asset and mortgage-backed obligations
 
—

 
2

 
—

 
—

 
2

Equity securities:
 
 
 
 
 
 
 
 
 
 
United States companies
 
250

 
—

 
—

 
—

 
250

International companies
 
5

 
—

 
—

 
—

 
5

Investment funds
 
9

 
—

 
—

 
—

 
9

 
 
$
426

 
$
52

 
$
1

 
$
(2
)
 
$
477

 
 
 
 
 
 
 
 
 
 
 
Liabilities - commodity derivatives
 
$
—

 
$
(3
)
 
$
(3
)
 
$
3

 
$
(3
)

(1)
Represents netting under master netting arrangements and a net cash collateral receivable of $1 million and $1 million as of June 30, 2017 and December 31, 2016, respectively.
(2)
Amounts are included in cash and cash equivalents and investments and restricted cash and investments on the Balance Sheets. The fair value of these money market mutual funds approximates cost.
Fair Value Assets and Liabilities Net Measured On Recurring Basis Unobservable Input Reconciliation
The following table reconciles the beginning and ending balances of MidAmerican Energy's assets and liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):
 
Three-Month Periods
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
Commodity
Derivatives
 
Auction Rate
Securities
 
Commodity
Derivatives
 
Auction Rate Securities
2017:
 
 
 
 
 
 
 
Beginning balance
$
1

 
$
—

 
$
(2
)
 
$
—

Changes in fair value recognized in net regulatory assets
(2
)
 
—

 
—

 
—

Settlements
—

 
—

 
1

 
—

Ending balance
$
(1
)
 
$
—

 
$
(1
)
 
$
—

 
 
 
 
 
 
 
 
2016:
 
 
 
 
 
 
 
Beginning balance
$
(4
)
 
$
26

 
$
(6
)
 
$
26

Transfer to affiliate
—

 
—

 
(4
)
 
—

Changes in fair value recognized in OCI
—

 
2

 
—

 
3

Changes in fair value recognized in net regulatory assets
(3
)
 
—

 
(4
)
 
—

Redemptions
—

 
(10
)
 
—

 
(11
)
Settlements
5

 
—

 
12

 
—

Ending balance
$
(2
)
 
$
18

 
$
(2
)
 
$
18
Fair Value, by Balance Sheet Grouping
MidAmerican Energy's long-term debt is carried at cost on the Balance Sheets. The fair value of MidAmerican Energy's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of MidAmerican Energy's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of MidAmerican Energy's long-term debt (in millions):
 
As of June 30, 2017
 
As of December 31, 2016
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
 
 
 
 
 
 
 
 
Long-term debt
$
4,893

 
$
5,438

 
$
4,301

 
$
4,735
MidAmerican Funding, LLC and Subsidiaries [Domain]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value, by Balance Sheet Grouping
MidAmerican Funding's long-term debt is carried at cost on the Consolidated Financial Statements. The fair value of MidAmerican Funding's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The carrying value of MidAmerican Funding's variable-rate long-term debt approximates fair value because of the frequent repricing of these instruments at market rates. The following table presents the carrying value and estimated fair value of MidAmerican Funding's long-term debt (in millions):
 
As of June 30, 2017
 
As of December 31, 2016
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
 
 
 
 
 
 
 
 
Long-term debt
$
5,219

 
$
5,867

 
$
4,627

 
$
5,164
Nevada Power Company [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents Nevada Power's financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):
 
Input Levels for Fair Value Measurements
 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
As of June 30, 2017
 
 
 
 
 
 
 
Assets - investment funds
$
2

 
$
—

 
$
—

 
$
2

 
 
 
 
 
 
 
 
Liabilities - commodity derivatives
$
—

 
$
—

 
$
(4
)
 
$
(4
)
 
 
 
 
 
 
 
 
As of December 31, 2016
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Money market mutual funds(1)
$
220

 
$
—

 
$
—

 
$
220

Investment funds
6

 
—

 
—

 
6

 
$
226

 
$
—

 
$
—

 
$
226

 
 
 
 
 
 
 
 
Liabilities - commodity derivatives
$
—

 
$
—

 
$
(14
)
 
$
(14
)


(1)
Amounts are included in cash and cash equivalents on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation
The following table reconciles the beginning and ending balances of Nevada Power's commodity derivative liabilities measured at fair value on a recurring basis using significant Level 3 inputs (in millions):
 
Three-Month Periods
 
Six-Month Periods
 
Ended June 30,
 
Ended June 30,
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
Beginning balance
$
(14
)
 
$
(22
)
 
$
(14
)
 
$
(22
)
Changes in fair value recognized in regulatory assets
(1
)
 
(2
)
 
(2
)
 
(5
)
Settlements
11

 
2

 
12

 
5

Ending balance
$
(4
)
 
$
(22
)
 
$
(4
)
 
$
(22
)
Fair Value, by Balance Sheet Grouping
The following table presents the carrying value and estimated fair value of Nevada Power's long‑term debt (in millions):
 
As of June 30, 2017
 
As of December 31, 2016
 
Carrying
 
Fair
 
Carrying
 
Fair
 
Value
 
Value
 
Value
 
Value
 
 
 
 
 
 
 
 
Long-term debt
$
2,598

 
$
3,067

 
$
2,581

 
$
3,040
Sierra Pacific Power Company [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents Sierra Pacific's financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions):
 
Input Levels for Fair Value Measurements
 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
As of June 30, 2017
 
 
 
 
 
 
 
Assets - investment funds
$
—

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
As of December 31, 2016
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Money market mutual funds(1)
$
35

 
$
—

 
$
—

 
$
35

Investment funds
1

 
—

 
—

 
1

 
$
36

 
$
—

 
$
—

 
$
36


(1)
Amounts are included in cash and cash equivalents on the Consolidated Balance Sheets. The fair value of these money market mutual funds approximates cost.
Fair Value, by Balance Sheet Grouping
The following table presents the carrying value and estimated fair value of Sierra Pacific's long-term debt (in millions):
 
As of June 30, 2017
 
As of December 31, 2016
 
Carrying
 
Fair
 
Carrying
 
Fair
 
Value
 
Value
 
Value
 
Value
 
 
 
 
 
 
 
 
Long-term debt
$
1,121

 
$
1,204

 
$
1,119

 
$
1,191