Notes payable and other borrowings

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Notes payable and other borrowings

(18)Notes payable and other borrowings

The carrying value of notes payable and other borrowings is summarized below (in millions). The weighted average interest rates and maturity date ranges shown in the following tables are based on borrowings as of December 31, 2022.

	Weighted Average			December 31,
	Interest Rate			2022		2021
Insurance and other:
Berkshire Hathaway Inc. (“Berkshire”):
U.S. Dollar denominated due 2023-2047		3.2	%	$	6,231	$	6,820
Euro denominated due 2023-2041		1.0	%		7,344		7,792
Japanese Yen denominated due 2023-2060		0.7	%		7,818		6,797
Berkshire Hathaway Finance Corporation (“BHFC”):
U.S. Dollar denominated due 2027-2052		3.6	%		14,458		10,758
Great Britain Pound denominated due 2039-2059		2.5	%		2,078		2,325
Euro denominated due 2030-2034		1.8	%		1,332		—
Other subsidiary borrowings due 2023-2051		4.3	%		5,967		4,438
Short-term subsidiary borrowings		5.8	%		1,310		342
				$	46,538	$	39,272

In January 2022, Berkshire issued ¥128.5 billion (approximately $1.1 billion) of senior notes with maturity dates ranging from 2027 to 2052 and a weighted average interest rate of 0.5%. In December 2022, Berkshire issued ¥115.0 billion (approximately $840 million) of senior notes with maturity dates ranging from 2025 to 2052 and a weighted average interest rate of 1.1%. In the first two months of 2023, Berkshire repaid $1.1 billion of maturing senior notes. An additional $3.2 billion of Berkshire senior notes mature in March and April of 2023.

Borrowings of BHFC, a wholly owned finance subsidiary of Berkshire, consist of senior unsecured notes used to fund manufactured housing loans originated or acquired and equipment held for lease of certain subsidiaries. BHFC borrowings are fully and unconditionally guaranteed by Berkshire. In March 2022, BHFC issued $4.5 billion of senior notes with maturity dates ranging from 2027 to 2052 with a weighted average interest rate of 3.4% and €1.25 billion (approximately $1.4 billion) of senior notes maturing in 2030 and 2034 with a weighted average interest rate of 1.8%. Berkshire also guarantees certain debt of other subsidiaries, aggregating approximately $3.7 billion at December 31, 2022, of which $1.0 billion matured in January 2023. Generally, Berkshire’s guarantee of a subsidiary’s debt obligation is an absolute, unconditional and irrevocable guarantee for the full and prompt payment when due of all payment obligations. Other subsidiary and short-term subsidiary borrowings as of December 31, 2022 includes approximately $2.3 billion attributable to Alleghany Corporation and its subsidiaries.

The carrying values of Berkshire and BHFC non-U.S. Dollar denominated senior notes (€8.15 billion, £1.75 billion and ¥1,029 billion par at December 31, 2022) reflect the applicable exchange rates as of each balance sheet date. The effects of changes in foreign currency exchange rates during the period are recorded in earnings as a component of selling, general and administrative expenses. Changes in the exchange rates resulted in pre-tax gains of $1.7 billion in 2022, $1.3 billion in 2021 and pre-tax losses of $1.0 billion in 2020.

	Weighted Average			December 31,
	Interest Rate			2022		2021
Railroad, utilities and energy:
Berkshire Hathaway Energy Company (“BHE”) and subsidiaries:
BHE senior unsecured debt due 2023-2053		4.3	%	$	13,996	$	13,003
Subsidiary and other debt due 2023-2064		4.3	%		37,639		36,759
Short-term borrowings		5.2	%		1,119		2,009
Burlington Northern Santa Fe (“BNSF”) and subsidiaries due 2023-2097		4.5	%		23,452		23,219
				$	76,206	$	74,990

Notes to Consolidated Financial Statements (Continued)

(18)Notes payable and other borrowings (Continued)

BHE subsidiary debt represents amounts issued pursuant to separate financing agreements. Substantially all of the assets of certain BHE subsidiaries are, or may be, pledged or encumbered to support or otherwise secure debt. These borrowing arrangements generally contain various covenants, including covenants which pertain to leverage ratios, interest coverage ratios and/or debt service coverage ratios. In 2022, BHE issued $1.0 billion of 4.6% senior notes due in 2053. During 2022, BHE subsidiaries issued approximately $3.0 billion of term debt with a weighted average interest rate of 5.2% as of December 31 and maturity dates ranging from 2024 to 2053.

BNSF’s borrowings are primarily senior unsecured debentures. In June 2022, BNSF issued $1.0 billion of 4.45% debentures due in 2053. As of December 31, 2022, BNSF, BHE and their subsidiaries were in compliance with all applicable debt covenants. Berkshire does not guarantee any debt, borrowings or lines of credit of BNSF, BHE or their subsidiaries.

Our subsidiaries had unused lines of credit and commercial paper capacity to support short-term borrowing programs and provide additional liquidity. Unused lines of credit were approximately $11.1 billion at December 31, 2022, which included approximately $9.1 billion related to BHE and its subsidiaries.

Debt principal repayments expected during each of the next five years are as follows (in millions). Amounts in 2023 include short-term borrowings.

	2023		2024		2025		2026		2027
Insurance and other	$	7,080	$	1,975	$	3,122	$	3,454	$	2,870
Railroad, utilities and energy		5,882		4,281		3,919		1,498		1,686
	$	12,962	$	6,256	$	7,041	$	4,952	$	4,556