Berkshire Hathaway 2012 Annual Report Download - page 52

Notes to Consolidated Financial Statements (Continued)
(14) Notes payable and other borrowings (Continued)
The borrowings of BHFC, a wholly owned finance subsidiary of Berkshire, are fully and unconditionally guaranteed by
Berkshire. In May and September 2012, BHFC issued in the aggregate $2.35 billion of senior notes with interest rates ranging
from 1.6% to 4.4% and maturities ranging from 2017 to 2042. In 2012, BHFC repaid $2.7 billion of maturing senior notes. In
January 2013, BHFC issued $500 million of new senior notes and repaid $500 million of maturing senior notes.
Certain of our subsidiaries have approximately $4.1 billion in the aggregate of unused lines of credit and commercial paper
capacity at December 31, 2012, to support short-term borrowing programs and provide additional liquidity. In addition to
borrowings of BHFC, Berkshire guarantees approximately $4 billion of other subsidiary borrowings as of December 31, 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.
Principal repayments expected during each of the next five years are as follows (in millions).
2013 2014 2015 2016 2017
Insurance and other ................................................ $ 4,160 $1,341 $1,981 $ 875 $1,418
Railroad, utilities and energy ......................................... 2,477 1,638 1,190 751 1,176
Finance and financial products ........................................ 3,874 1,301 1,625 155 1,558
$10,511 $4,280 $4,796 $1,781 $4,152
(15) Income taxes
The liabilities for income taxes reflected in our Consolidated Balance Sheets are as follows (in millions).
December 31,
2012 2011
Currently payable (receivable) ................................................... $ (255) $ (229)
Deferred ..................................................................... 43,883 37,105
Other ....................................................................... 866 928
$44,494 $37,804
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax
liabilities are shown below (in millions).
December 31,
2012 2011
Deferred tax liabilities:
Investments – unrealized appreciation and cost basis differences .................... $16,075 $ 11,404
Deferred charges reinsurance assumed ........................................ 1,392 1,449
Property, plant and equipment ............................................... 29,715 28,414
Other .................................................................. 6,485 6,378
53,667 47,645
Deferred tax assets:
Unpaid losses and loss adjustment expenses .................................... (924) (967)
Unearned premiums ....................................................... (660) (572)
Accrued liabilities ........................................................ (3,466) (3,698)
Derivative contract liabilities ................................................ (1,131) (1,676)
Other .................................................................. (3,603) (3,627)
(9,784) (10,540)
Net deferred tax liability ....................................................... $43,883 $ 37,105
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