Related Party Transactions (LLC) (MidAmerican Funding, LLC and Subsidiaries [Domain])

12 Months Ended

Dec. 31, 2013

MidAmerican Funding, LLC and Subsidiaries [Domain]

Related Party Transactions [Line Items]

Related Party Transactions Disclosure [Text Block]

(18) Related Party Transactions

The companies identified as affiliates of MidAmerican Funding are Berkshire Hathaway and its subsidiaries, including MEHC and its subsidiaries. The basis for the following transactions is provided for in service agreements between MidAmerican Funding and the affiliates.

MidAmerican Funding is reimbursed for charges incurred on behalf of its affiliates. The majority of these reimbursed expenses are for allocated general costs, such as insurance and building rent, and for employee wages, benefits and costs for corporate functions, such as information technology, treasury, legal and accounting. The amount of such reimbursements was $28 million, $42 million and $44 million for 2013, 2012 and 2011, respectively.

MidAmerican Funding reimbursed MEHC in the amount of $10 million, $7 million and $11 million in 2013, 2012 and 2011, respectively, for its share of corporate expenses.

MidAmerican Energy purchases natural gas transportation and storage capacity services from Northern Natural Gas Company, a wholly owned subsidiary of MEHC, and coal transportation services from BNSF Railway Company, a wholly-owned subsidiary of Berkshire Hathaway, in the normal course of business at either tariffed or market prices. These purchases totaled $155 million, $59 million and $59 million in 2013, 2012 and 2011, respectively.

MHC has a $300 million revolving credit arrangement carrying interest at the 30-day LIBOR rate plus a spread to borrow from MEHC. Outstanding balances are unsecured and due on demand. The outstanding balance was $135 million at an interest rate of 0.418% as of December 31, 2013, and $246 million at an interest rate of 0.465% as of December 31, 2012, and is reflected as note payable to affiliate on the Consolidated Balance Sheet.

MEHC has a $100 million revolving credit arrangement, carrying interest at the 30-day LIBOR rate plus a spread to borrow from MHC. Outstanding balances are unsecured and due on demand. There were no borrowings outstanding throughout 2013 and 2012.

MidAmerican Funding had accounts receivable from affiliates of $7 million as of December 31, 2013 and 2012, respectively, that are included in receivables, net on the Consolidated Balance Sheets. MidAmerican Funding also had accounts payable to affiliates of $14 million and $7 million as of December 31, 2013 and 2012, respectively, that are included in accounts payable on the Consolidated Balance Sheets.

MidAmerican Funding is party to a tax-sharing agreement and is part of the Berkshire Hathaway United States federal income tax return. As of December 31, 2013, MidAmerican Funding had current income taxes receivable from MEHC of $46 million and, as of December 31, 2012, had current income taxes payable to MEHC of $117 million. MidAmerican Funding received net cash receipts for income taxes from MEHC totaling $42 million, $698 million and $230 million for the years ended December 31, 2013, 2012 and 2011, respectively.

MidAmerican Funding recognizes the full amount of the funded status for its pension and postretirement plans, and amounts attributable to MidAmerican Funding's affiliates that have not previously been recognized through income are recognized as an intercompany balance with such affiliates. MidAmerican Funding adjusts these balances when changes to the funded status of the respective plans are recognized and does not intend to settle the balances currently. Amounts receivable from affiliates attributable to the funded status of employee benefit plans totaled $5 million and $16 million as of December 31, 2013 and 2012, respectively, and similar amounts payable to affiliates totaled $31 million and $20 million as of December 31, 2013 and 2012, respectively. See Note 11 for further information pertaining to pension and postretirement accounting.

The indenture pertaining to MidAmerican Funding's long-term debt restricts MidAmerican Funding from paying a distribution on its equity securities, unless after making such distribution either its debt to total capital ratio does not exceed 0.67:1 and its interest coverage ratio is not less than 2.2:1 or its senior secured long-term debt rating is at least BBB or its equivalent. MidAmerican Funding may seek a release from this restriction upon delivery to the indenture trustee of written confirmation from the ratings agencies that without this restriction MidAmerican Funding's senior secured long-term debt would be rated at least BBB+.