Berkshire Hathaway 2008 Annual Report Download - page 49

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Notes to Consolidated Financial Statements (Continued)
(14) Notes payable and other borrowings (Continued)
Subsidiary debt of utilities and energy businesses represents amounts issued by subsidiaries of MidAmerican pursuant to
separate financing agreements. All or substantially all of the assets of certain utility 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. As of December 31, 2008,
MidAmerican and its subsidiaries were in compliance with all applicable covenants. During 2008, MidAmerican and its
subsidiaries issued $2.15 billion of notes with maturities ranging from 2012 to 2038.
2008 2007
Finance and financial products:
Issued by Berkshire Hathaway Finance Corporation (“BHFC”) and guaranteed by Berkshire ........ $10,778 $ 8,886
Issued by other subsidiaries and guaranteed by Berkshire due 2009-2027 ....................... 706 804
Issued by other subsidiaries and not guaranteed by Berkshire 2009-2030 ........................ 1,904 2,454
$13,388 $12,144
Debt issued by BHFC matures between 2010 and 2018. During 2008, BHFC issued $5.0 billion of senior notes, and repaid
$3.1 billion of maturing notes. Borrowings by BHFC are used to provide financing for consumer installment loans.
Berkshire subsidiaries in the aggregate have approximately $3.8 billion of available unused lines of credit and commercial
paper capacity to support their 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 of the issuer.
Principal payments expected during the next five years are as follows (in millions).
2009 2010 2011 2012 2013
Insurance and other ................................................. $2,365 $ 240 $ 110 $ 98 $ 101
Utilities and energy ................................................. 1,258 121 1,134 1,457 633
Finance and financial products ......................................... 301 2,150 1,632 1,633 3,557
$3,924 $2,511 $2,876 $3,188 $4,291
(15) Income taxes
The liability for income taxes as of December 31, 2008 and 2007 as reflected in the accompanying Consolidated Balance
Sheets is as follows (in millions).
2008 2007
Payable currently .............................................................. $ 161 $ (182)
Deferred ..................................................................... 9,316 18,156
Other ....................................................................... 803 851
$10,280 $18,825
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