Berkshire Hathaway 2015 Annual Report Download - page 61

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Notes to Consolidated Financial Statements (Continued)
(15) Notes payable and other borrowings (Continued)
Weighted
Average
Interest Rate
December 31,
2015 2014
Railroad, utilities and energy:
Issued by Berkshire Hathaway Energy Company (“BHE”) and its subsidiaries:
BHE senior unsecured debt due 2017-2045 ................................ 5.1% $ 7,814 $ 7,810
Subsidiary and other debt due 2016-2064 ................................. 4.9% 28,188 28,292
Issued by BNSF due 2016-2097 ............................................. 4.9% 21,737 19,204
$57,739 $55,306
BHE subsidiary debt represents amounts issued pursuant to separate financing agreements. Substantially all of the assets of
certain BHE subsidiaries are, or may be, pledged or encumbered to support or otherwise secure debt. These borrowing
arrangements generally contain various covenants including, but not limited to, leverage ratios, interest coverage ratios and debt
service coverage ratios. In 2015, BHE subsidiaries issued approximately $2.5 billion of debt with maturity dates ranging from
2016 to 2046 and a weighted average interest rate of 3.4%.
BNSF’s borrowings are primarily senior unsecured debentures. In 2015, BNSF issued $2.5 billion of senior unsecured
debentures consisting of $850 million of debentures due in 2025 and $1.65 billion of debentures due in 2045, with interest rates
ranging from 3.0% to 4.7%. In 2015, BNSF also issued $500 million of amortizing debt with a final maturity date of 2028,
which is secured with locomotives. As of December 31, 2015, BNSF and BHE and their subsidiaries were in compliance with
all applicable debt covenants. Berkshire does not guarantee any debt, borrowings or lines of credit of BNSF, BHE or their
subsidiaries.
Weighted
Average
Interest Rate
December 31,
2015 2014
Finance and financial products:
Issued by Berkshire Hathaway Finance Corporation (“BHFC”) due 2016-2043 ....... 2.7% $10,679 $11,172
Issued by other subsidiaries due 2016-2036 .................................... 5.0% 1,272 1,558
$11,951 $12,730
In 2015, BHFC issued $1.0 billion of senior notes consisting of $400 million floating rate senior notes that mature in 2017
and $600 million floating rate senior notes that mature in 2018. The borrowings of BHFC, a wholly owned finance subsidiary of
Berkshire, are fully and unconditionally guaranteed by Berkshire.
As of December 31, 2015, our subsidiaries had unused lines of credit and commercial paper capacity aggregating
approximately $7.7 billion to support short-term borrowing programs and provide additional liquidity. Such unused lines of
credit included about $5.0 billion related to BHE and its subsidiaries. In addition to BHFC’s borrowings, Berkshire guarantees
other subsidiary borrowings, aggregating approximately $3.3 billion at December 31, 2015. 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).
2016 2017 2018 2019 2020
Insurance and other ................................................. $3,083 $1,436 $1,116 $1,366 $ 72
Railroad, utilities and energy .......................................... 2,511 1,719 4,258 2,905 2,159
Finance and financial products ......................................... 1,223 3,348 2,961 104 612
$6,817 $6,503 $8,835 $4,375 $2,843
59