BHE Debt

Senior Debt

BHE senior debt represents unsecured senior obligations of BHE that are redeemable in whole or in part at any time generally with make-whole premiums. BHE senior debt consists of the following, including unamortized premiums, discounts and debt issuance costs, as of December 31 (in millions):



	Par Value		2015		2014

1.10% Senior Notes, due 2017	$	400	$	399	$	399
5.75% Senior Notes, due 2018	650		648		648
2.00% Senior Notes, due 2018	350		348		348
2.40% Senior Notes, due 2020	350		348		348
3.75% Senior Notes, due 2023	500		497		497
3.50% Senior Notes, due 2025	400		397		397
8.48% Senior Notes, due 2028	475		477		477
6.125% Senior Bonds, due 2036	1,700		1,690		1,688
5.95% Senior Bonds, due 2037	550		547		547
6.50% Senior Bonds, due 2037	1,000		987		986
5.15% Senior Notes, due 2043	750		739		738
4.50% Senior Notes, due 2045	750		737		737
Total BHE Senior Debt	$	7,875	$	7,814	$	7,810

Reflected as:
Current liabilities			$	—	$	—
Noncurrent liabilities			7,814		7,810
Total BHE Senior Debt			$	7,814	$	7,810

Junior Subordinated Debentures

BHE junior subordinated debentures consists of the following as of December 31 (in millions):



	Par Value		2015		2014

Junior subordinated debentures, due 2043	$	1,444	$	1,444	$	2,294
Junior subordinated debentures, due 2044	1,500		1,500		1,500
Total BHE junior subordinated debentures - noncurrent	$	2,944	$	2,944	$	3,794

BHE issued junior subordinated debentures to certain subsidiaries of Berkshire Hathaway pursuant to an indenture, by and between BHE and The Bank of New York Mellon Trust Company, N.A., as trustee, dated as of December 19, 2013 and November 12, 2014. The junior subordinated debentures are unsecured and junior in right of payment to BHE's senior debt. The junior subordinated debentures (i) have a 30 year maturity; (ii) bear interest at a floating rate equal to (a) the greater of 1% and the LIBOR (the greater of such two rates, the "Base Rate") plus 200 basis points through the date prior to the third anniversary of the issuance date; (b) the Base Rate plus 300 basis points (or, if at least 50% of principal is repaid prior to the third anniversary of the issuance date, the Base Rate plus 200 basis points) from the third anniversary of the issuance date through the date prior to the seventh anniversary of the issuance date; and (c) the Base Rate plus 375 basis points from the seventh anniversary of the issuance date until the maturity of the junior subordinated debentures; and (iii) are redeemable at BHE's option from time to time at par plus accrued and unpaid interest. The holders are restricted from transferring the junior subordinated debentures except to Berkshire Hathaway and its subsidiaries. As of December 31, 2015 and 2014, the interest rate was 3.0%. Interest expense to Berkshire Hathaway for the years ended December 31, 2015, 2014 and 2013 was $104 million, $78 million and $3 million, respectively.

In February 2016, BHE provided notice of redemption for $500 million of the junior subordinated debentures due 2043 at par value to occur in March 2016.