Berkshire Hathaway 2012 Annual Report Download - page 51

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Notes to Consolidated Financial Statements (Continued)
(13) Unpaid losses and loss adjustment expenses (Continued)
government regulations, newly identified toxins, newly reported claims, new theories of liability, new contract interpretations
and other factors could result in significant increases in these liabilities. Such development could be material to our results of
operations. We are unable to reliably estimate the amount of additional net loss or the range of net loss that is reasonably
possible.
(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 December 31, 2012.
Weighted
Average
Interest Rate
December 31,
2012 2011
Insurance and other:
Issued by Berkshire due 2013-2047 .......................................... 2.3% $ 8,323 $ 8,287
Short-term subsidiary borrowings ........................................... 0.4% 1,416 1,490
Other subsidiary borrowings due 2013-2035 ................................... 5.9% 3,796 3,991
$13,535 $13,768
In January 2012, Berkshire issued $1.1 billion of 1.9% senior notes due in 2017 and $600 million of 3.4% senior notes due
in 2022 and in February 2012 repaid maturing debt of $1.7 billion. In January 2013, Berkshire issued $2.6 billion of senior notes
with interest rates ranging from 0.8% to 4.5% and maturities that range from 2016 to 2043. In February 2013, Berkshire repaid
$2.6 billion of maturing senior notes.
Weighted
Average
Interest Rate
December 31,
2012 2011
Railroad, utilities and energy:
Issued by MidAmerican Energy Holdings Company (“MidAmerican”) and its
subsidiaries:
MidAmerican senior unsecured debt due 2014-2037 ......................... 6.3% $ 4,621 $ 5,363
Subsidiary and other debt due 2013-2042 ................................. 4.9% 17,002 14,552
Issued by BNSF due 2013-2097 ............................................. 5.5% 14,533 12,665
$36,156 $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 2012, MidAmerican and subsidiaries issued or acquired approximately
$3.1 billion of new term debt with interest rates from 1.43% to 5.75% and maturities ranging from 2013 to 2042 and repaid
existing term debt of approximately $1.6 billion. In March and August 2012, BNSF issued $2.5 billion in new debentures in the
aggregate with interest rates ranging from 3.05% to 4.4% and maturities ranging from 2022 to 2042. In 2012, BNSF repaid
approximately $500 million of existing term debt. BNSF’s borrowings are primarily unsecured. As of December 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
December 31,
2012 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 2013-2036 .................................... 5.0% 1,859 2,505
$13,045 $14,036
49