Notes payable and other borrowings

9 Months Ended

Sep. 30, 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 and maturity date ranges shown in the following tables are based on borrowings as of September 30, 2012.

	Weighted Average Interest Rate
				September 30, 2012		December 31, 2011
Insurance and other:
Issued by Berkshire parent company due 2013-2047		2.3	%	$	8,319	$	8,287
Short-term subsidiary borrowings		0.3	%		1,225		1,490
Other subsidiary borrowings due 2012-2035		5.9	%		3,861		3,991
				$	13,405	$	13,768

In connection with the BNSF acquisition in 2010, the Berkshire parent company issued $8.0 billion aggregate par amount of senior unsecured notes, including $1.1 billion of floating rate and $600 million of 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
				September 30, 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		6.3	%	$	5,113	$	5,363
Subsidiary and other debt due 2012-2042		5.3	%		16,021		14,552
Issued by BNSF due 2012-2097		5.5	%		14,598		12,665
				$	35,732	$	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. In the first nine months of 2012, MidAmerican subsidiaries issued approximately $2.5 billion of new debt with interest rates from 1.43% to 5.75% and maturities ranging from 2013 to 2042. In the fourth quarter of 2012, MidAmerican and subsidiary debt of approximately $850 million will mature. In March and August 2012, BNSF issued in the aggregate $2.5 billion in debentures, comprised of $1,225 million of 3.05% debentures due in 2022, $625 million of 4.40% debentures due in 2042 and $650 million of 4.375% debentures due in 2042. BNSF’s borrowings are primarily unsecured. As of September 30, 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
				September 30, 2012		December 31, 2011
Finance and financial products:
Issued by Berkshire Hathaway Finance Corporation (“BHFC”) due 2013-2042		4.1	%	$	11,186	$	11,531
Issued by other subsidiaries due 2012-2036		4.7	%		2,186		2,505
				$	13,372	$	14,036

BHFC is a 100% owned finance subsidiary of Berkshire, which has fully and unconditionally guaranteed BHFC’s borrowings. During the first nine months of 2012, $2.7 billion of BHFC notes matured. In May and September 2012, BHFC issued in the aggregate $2.35 billion of senior notes consisting of $1,075 million of 1.6% notes due in 2017, $550 million of 3.0% notes due in 2022 and $725 million of 4.4% notes due in 2042.

Certain of our subsidiaries in the aggregate have approximately $5.1 billion of unused lines of credit and commercial paper capacity at September 30, 2012, to support short-term borrowing programs and provide additional liquidity. In addition to borrowings of BHFC, Berkshire guarantees approximately $4.5 billion of other subsidiary borrowings as of September 30, 2012. 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.