Berkshire Hathaway 2009 Annual Report Download - page 47

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Notes to Consolidated Financial Statements (Continued)
(15) Notes payable and other borrowings (Continued)
2009 2008
Utilities and energy:
Issued by MidAmerican Energy Holdings Company (“MidAmerican”) and its subsidiaries and not
guaranteed by Berkshire:
MidAmerican senior unsecured debt due 2012-2037 .................................... $ 5,371 $ 5,121
Subsidiary and other debt due 2010-2039 ............................................. 14,208 14,024
$19,579 $19,145
MidAmerican senior debt is unsecured and has a weighted average interest rate of about 6.2% as of December 31, 2009.
Subsidiary debt of utilities and energy businesses represents amounts issued by subsidiaries of MidAmerican pursuant to
separate financing agreements and has a weighted average interest rate of about 6% as of December 31, 2009. 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. As of December 31, 2009, MidAmerican and its subsidiaries
were in compliance with all applicable covenants.
2009 2008
Finance and financial products:
Issued by Berkshire Hathaway Finance Corporation (“BHFC”) and guaranteed by Berkshire ........ $12,051 $10,778
Issued by other subsidiaries and guaranteed by Berkshire due 2010-2027 ....................... 776 706
Issued by other subsidiaries and not guaranteed by Berkshire 2010-2036 ........................ 1,784 1,904
$14,611 $13,388
BHFC is a 100% owned finance subsidiary of Berkshire, which has fully and unconditionally guaranteed its securities.
Debt issued by BHFC matures between 2010 and 2018 and has a weighted average interest rate of approximately 4.2% as of
December 31, 2009. In January 2010, BHFC issued $1 billion par amount of senior notes consisting of $750 million par of
5.75% notes due in 2040 and $250 million par of floating rate notes due in 2012. In January 2010, BHFC repaid $1.5 billion par
amount of senior notes that matured.
Our subsidiaries have approximately $4.7 billion of available unused lines of credit and commercial paper capacity in the
aggregate 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 of the issuer.
Principal payments expected during the next five years are as follows (in millions).
2010 2011 2012 2013 2014
Insurance and other * ................................................ $2,015 $ 120 $ 107 $ 99 $ 118
Utilities and energy ................................................. 371 1,141 1,666 650 970
Finance and financial products ......................................... 2,251 1,638 2,649 3,556 489
$4,637 $2,899 $4,422 $4,305 $1,577
*The amounts in the table above exclude amounts that will be repaid with respect to the $8 billion aggregate par amount of
senior notes due between 2011 and 2015 that we issued subsequent to December 31, 2009 in connection with the BNSF
acquisition.
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