XML 44 R33.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Pension plans | 12 Months Ended
--- | ---
Dec. 31, 2023
Retirement Benefits [Abstract] |
Pension plans | (24) Pension plans Certain Berkshire subsidiaries sponsor defined benefit pension plans. Benefits under the plans are generally based on years of service and compensation or fixed benefit rates. Plan sponsors may make contributions to the plans to meet regulatory requirements and may also make discretionary contributions. Our net periodic pension expense for each of the three years ending December 31, 2023 was as follows (in millions).
|  | 2023 |  |  | 2022 |  |  | 2021 |
Service cost |  | $ | 111 |  |  | $ | 181 |  |  | $ | 257 |
Interest cost |  |  | 640 |  |  |  | 482 |  |  |  | 410 |
Expected return on plan assets |  |  | (785 | ) |  |  | (975 | ) |  |  | (1,008 | )
Other |  |  | 2 |  |  |  | 156 |  |  |  | 203 |
Net periodic pension expense |  | $ | (32 | ) |  | $ | (156 | ) |  | $ | (138 | )
The projected benefit obligation (“PBO”) is the actuarial present value of benefits earned based upon service and compensation prior to the valuation date and, if applicable, includes assumptions regarding future compensation levels. Benefit obligations under qualified U.S. defined benefit pension plans are funded through assets held in trusts. Pension obligations under certain other plans are unfunded and the aggregate PBOs of such plans were $1.0 billion and $1.1 billion as of December 31, 2023 and 2022, respectively. The costs of certain BHE pension plans are expected to be recoverable through the regulated rate making process. The funded status reflected in the Consolidated Balance Sheets at year end 2023 and 2022 and reconciliations of the changes in PBOs and plan assets related to BHE’s pension plans and all other pension plans for each of the two years ending December 31, 2023 follow (in millions).
|  | 2023 |  |  | 2022 |
|  | BHE |  |  | Other |  |  | Total |  |  | BHE |  |  | Other |  |  | Total |
PBOs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at the beginning of the year |  | $ | 3,215 |  |  | $ | 9,523 |  |  | $ | 12,738 |  |  | $ | 4,780 |  |  | $ | 14,012 |  |  | $ | 18,792 |
Service cost |  |  | 21 |  |  |  | 90 |  |  |  | 111 |  |  |  | 36 |  |  |  | 145 |  |  |  | 181 |
Interest cost |  |  | 167 |  |  |  | 473 |  |  |  | 640 |  |  |  | 118 |  |  |  | 364 |  |  |  | 482 |
Benefits paid |  |  | (274 | ) |  |  | (578 | ) |  |  | (852 | ) |  |  | (250 | ) |  |  | (585 | ) |  |  | (835 | )
Settlements paid |  |  | — |  |  |  | (448 | ) |  |  | (448 | ) |  |  | (164 | ) |  |  | (678 | ) |  |  | (842 | )
Actuarial (gains) losses and other |  |  | 140 |  |  |  | 438 |  |  |  | 578 |  |  |  | (1,305 | ) |  |  | (3,735 | ) |  |  | (5,040 | )
Balance at the end of the year |  | $ | 3,269 |  |  | $ | 9,498 |  |  | $ | 12,767 |  |  | $ | 3,215 |  |  | $ | 9,523 |  |  | $ | 12,738 |
Plan assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at the beginning of the year |  | $ | 3,376 |  |  | $ | 9,216 |  |  | $ | 12,592 |  |  | $ | 5,158 |  |  | $ | 13,462 |  |  | $ | 18,620 |
Employer contributions |  |  | 27 |  |  |  | 118 |  |  |  | 145 |  |  |  | 29 |  |  |  | 133 |  |  |  | 162 |
Benefits paid |  |  | (274 | ) |  |  | (578 | ) |  |  | (852 | ) |  |  | (250 | ) |  |  | (585 | ) |  |  | (835 | )
Settlements paid |  |  | — |  |  |  | (448 | ) |  |  | (448 | ) |  |  | (164 | ) |  |  | (678 | ) |  |  | (842 | )
Actual return on plan assets |  |  | 271 |  |  |  | 1,512 |  |  |  | 1,783 |  |  |  | (1,162 | ) |  |  | (2,971 | ) |  |  | (4,133 | )
Other |  |  | 71 |  |  |  | 88 |  |  |  | 159 |  |  |  | (235 | ) |  |  | (145 | ) |  |  | (380 | )
Balance at the end of the year |  | $ | 3,471 |  |  | $ | 9,908 |  |  | $ | 13,379 |  |  | $ | 3,376 |  |  | $ | 9,216 |  |  | $ | 12,592 |
Funded status – net (asset) liability |  | $ | (202 | ) |  | $ | (410 | ) |  | $ | (612 | ) |  | $ | (161 | ) |  | $ | 307 |  |  | $ | 146 |
Notes to Consolidated Financial Statements (24) Pension plans The funded status at December 31, 2023 reflected in assets was $1,823 million and in liabilities was $1,211 million. The funded status at December 31, 2022 included in assets was $1,510 million and in liabilities was $1,656 million. The accumulated benefit obligation (“ABO”) is the actuarial present value of benefits earned based on service and compensation prior to the valuation date. The ABO was $12.3 billion at December 31, 2023 and $12.2 billion at December 31, 2022. Information for plans with PBOs and ABOs in excess of plan assets as of December 31, 2023 and 2022 follows (in millions).
| 2023 |  | 2022 |
PBOs | $ | 5,679 |  | $ | 6,422 |
Plan assets |  | 4,469 |  |  | 4,766 |
ABOs |  | 1,246 |  |  | 5,594 |
Plan assets |  | 222 |  |  | 4,234 |
Weighted average assumptions used in determining PBOs and net periodic pension expense follow.
| 2023 |  | 2022 |  | 2021 |
Discount rate applicable to PBOs |  | 5.0 | % |  | 5.2 | % |  | 2.7 | %
Expected long-term rate of return on plan assets |  | 6.0 |  | 5.9 |  | 6.1 |
Rate of compensation increase | 2.6 |  | 2.5 |  | 2.6 |
Discount rate applicable to net periodic pension expense |  | 5.3 |  |  | 2.9 |  |  | 2.4 |
Pension benefit payments expected over the next ten years follow (in millions): 2024 – $895; 2025 – $886; 2026 – $885; 2027 – $896; 2028 – $885; and 2029 through 2033 – $4,434. We expect to contribute $118 million to the pension plans in 2024. Fair value measurements of plan assets as of December 31, 2023 and 2022 follow (in millions).
|  | Fair Value |  |  | Investments carried at net |
|  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | asset value |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 449 |  |  | $ | 370 |  |  | $ | 79 |  |  | $ | — |  |  | $ | — |
Equity securities |  |  | 8,487 |  |  |  | 7,808 |  |  |  | 543 |  |  |  | 136 |  |  |  | — |
Fixed maturity securities |  |  | 2,138 |  |  |  | 1,277 |  |  |  | 851 |  |  |  | 10 |  |  |  | — |
Investment funds and other |  |  | 2,305 |  |  |  | 342 |  |  |  | 272 |  |  |  | 42 |  |  |  | 1,649 |
|  | $ | 13,379 |  |  | $ | 9,797 |  |  | $ | 1,745 |  |  | $ | 188 |  |  | $ | 1,649 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 602 |  |  | $ | 523 |  |  | $ | 79 |  |  | $ | — |  |  | $ | — |
Equity securities |  |  | 7,673 |  |  |  | 7,112 |  |  |  | 321 |  |  |  | 240 |  |  |  | — |
Fixed maturity securities |  |  | 2,152 |  |  |  | 1,328 |  |  |  | 824 |  |  |  | — |  |  |  | — |
Investment funds and other |  |  | 2,165 |  |  |  | 198 |  |  |  | 394 |  |  |  | 42 |  |  |  | 1,531 |
|  | $ | 12,592 |  |  | $ | 9,161 |  |  | $ | 1,618 |  |  | $ | 282 |  |  | $ | 1,531 |
See Note 21 for a discussion of fair value measurements. Plan assets are generally invested with the long-term objective of producing earnings to adequately cover expected benefit obligations, while assuming a prudent level of risk. Allocations may change due to changing market conditions and investment opportunities. The expected rates of return on plan assets reflect subjective assessments of expected long-term investment returns. Generally, past investment returns are not given significant consideration when establishing assumptions for expected long-term rates of return on plan assets. Actual experience will differ from the assumed rates of return. Notes to Consolidated Financial Statements (24) Pension plans A reconciliation of the pre-tax accumulated other comprehensive income (loss) of our defined benefit pension plans for each of the two years ending December 31, 2023 follows (in millions).
|  | 2023 |  |  | 2022 |
Balance at the beginning of the year |  | $ | (738 | ) |  | $ | (485 | )
Amount included in net periodic pension expense |  |  | (12 | ) |  |  | 123 |
Actuarial gains (losses) and other |  |  | 589 |  |  |  | (376 | )
Balance at the end of the year |  | $ | (161 | ) |  | $ | (738 | )
Several of our subsidiaries also sponsor defined contribution retirement plans, such as 401(k) or profit-sharing plans. Employee contributions are subject to regulatory limitations and specific plan provisions. Several plans provide for employer matching contributions as specified in the plans and may provide for additional discretionary employer contributions. Our defined contribution plan expense was approximately $1.1 billion in 2023, $0.8 billion in 2022 and $1.0 billion in 2021.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 70 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480794/715-70-50-1 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 55 -Paragraph 17 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480482/715-20-55-17 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (q) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//715/tableOfContent Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (o) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (p) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (r)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (r)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 60 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480266/715-60-50-3 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration