Notes payable and other borrowings

3 Months Ended

Mar. 31, 2012

Notes payable and other borrowings

Note 14.  Notes payable and other borrowings

Notes payable and other borrowings are summarized below (in millions). The weighted average interest rates shown in the following tables are as of March 31, 2012. Maturity date ranges are based on borrowings as of March 31, 2012.

	Weighted Average Interest Rate			March 31, 2012		December 31, 2011
Insurance and other:
Issued by Berkshire parent company due 2012-2047		2.3	%	$	8,320	$	8,287
Short-term subsidiary borrowings		0.2	%		1,404		1,490
Other subsidiary borrowings due 2012-2035		5.9	%		3,911		3,991
				$	13,635	$	13,768

In connection with the BNSF acquisition, the Berkshire parent company issued $8.0 billion aggregate par amount of senior unsecured notes, including $1.7 billion par amount of floating rate and 1.4% notes that matured in February 2012. In January 2012, the Berkshire parent company issued $1.1 billion of 1.9% senior notes due in 2017 and $600 million of 3.4% senior notes due in 2022.

	Weighted Average Interest Rate			March 31, 2012		December 31, 2011
Railroad, utilities and energy:
Issued by MidAmerican Energy Holdings Company (“MidAmerican”) and its subsidiaries:
MidAmerican senior unsecured debt due 2012-2037		6.1	%	$	5,363	$	5,363
Subsidiary and other debt due 2012-2042		5.4	%		15,335		14,552
Issued by BNSF due 2012-2097		5.7	%		13,825		12,665
				$	34,523	$	32,580

MidAmerican subsidiary debt represents amounts issued pursuant to separate financing agreements. All or substantially all of the assets of certain MidAmerican subsidiaries are or may be pledged or encumbered to support or otherwise secure the debt. These borrowing arrangements generally contain various covenants including, but not limited to, leverage ratios, interest coverage ratios and debt service coverage ratios. BNSF’s borrowings are primarily unsecured. In the first quarter of 2012, MidAmerican subsidiaries issued $1.6 billion of debt with interest rates from 2.95% to 5.75% and maturities ranging from 2015 to 2042.  In the third and fourth quarters of 2012, MidAmerican and subsidiary debt of approximately $1.0 billion will mature.  In March 2012, BNSF issued $1.25 billion in debentures comprised of $625 million of 3.05% debentures due in March 2022 and $625 million of 4.40% debentures due in March 2042. As of March 31, 2012, BNSF and MidAmerican and their subsidiaries were in compliance with all applicable covenants. Berkshire does not guarantee any debt or other borrowings of BNSF, MidAmerican or their subsidiaries.

	Weighted Average Interest Rate			March 31, 2012		December 31, 2011
Finance and financial products:
Issued by Berkshire Hathaway Finance Corporation (“BHFC”) due 2012-2040		4.5	%	$	11,281	$	11,531
Issued by other subsidiaries due 2012-2036		4.8	%		2,396		2,505
				$	13,677	$	14,036

BHFC is a 100% owned finance subsidiary of Berkshire, which has fully and unconditionally guaranteed its securities. In January 2012, $250 million par amount of BHFC notes matured. In the second and third quarters of 2012, an additional $2.45 billion of BHFC notes will mature.

Our subsidiaries in the aggregate have approximately $4.5 billion of available unused lines of credit and commercial paper capacity at March 31, 2012, to support our short-term borrowing programs and provide additional liquidity. 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 present and future payment obligations.