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Notes payable and other borrowings
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Notes payable and other borrowings

Note 17. Notes payable and other borrowings

Notes payable and other borrowings of our insurance and other businesses are summarized below (dollars in millions). The weighted average interest rates and maturity date ranges are based on borrowings as of September 30, 2024.

 

 

 

Weighted
Average
Interest Rate

 

 

September 30,
2024

 

 

December 31,
2023

 

Insurance and other:

 

 

 

 

 

 

 

 

 

Berkshire Hathaway Inc. (“Berkshire”):

 

 

 

 

 

 

 

 

 

U.S. Dollar denominated due 2025-2047

 

 

3.5

%

 

$

3,746

 

 

$

3,740

 

Euro denominated due 2025-2041

 

 

1.1

%

 

 

5,089

 

 

 

6,145

 

Japanese Yen denominated due 2025-2060

 

 

0.9

%

 

 

10,803

 

 

 

8,896

 

Berkshire Hathaway Finance Corporation (“BHFC”):

 

 

 

 

 

 

 

 

 

U.S. Dollar denominated due 2027-2052

 

 

3.6

%

 

 

14,468

 

 

 

14,463

 

Great Britain Pound denominated due 2039-2059

 

 

2.5

%

 

 

2,304

 

 

 

2,191

 

Euro denominated due 2030-2034

 

 

1.8

%

 

 

1,387

 

 

 

1,374

 

Other subsidiary borrowings due 2024-2051

 

 

4.5

%

 

 

4,603

 

 

 

4,696

 

Subsidiary short-term borrowings

 

 

6.7

%

 

 

1,251

 

 

 

1,187

 

 

 

 

 

$

43,651

 

 

$

42,692

 

 

Notes to Consolidated Financial Statements

Note 17. Notes payable and other borrowings

Berkshire parent company borrowings consist of senior unsecured debt. In the first nine months of 2024, Berkshire repaid approximately $1.9 billion of maturing senior notes. In April 2024, Berkshire issued ¥263.3 billion (approximately $1.7 billion) of senior notes with interest rates ranging from 0.974% to 2.498% and maturity dates ranging from 2027 to 2054. In September 2024, Berkshire borrowed ¥142.5 billion (approximately $1.0 billion) under a term loan agreement due in 2028 and with an interest rate of 1.25%. In October 2024, Berkshire issued ¥281.8 billion (approximately $1.85 billion) of senior notes with interest rates ranging from 1.031% to 2.625% and maturity dates ranging from 2027 to 2054.

Borrowings of BHFC, a wholly-owned finance subsidiary of Berkshire, consist of senior unsecured notes used to fund manufactured housing loans originated or acquired and equipment held for lease of certain subsidiaries. BHFC borrowings are fully and unconditionally guaranteed by Berkshire. Berkshire also guarantees certain debt of other subsidiaries, aggregating approximately $2.7 billion at September 30, 2024. 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 payment obligations.

The carrying values of Berkshire and BHFC non-U.S. Dollar denominated senior notes (€5.85 billion, £1.75 billion and ¥1,556 billion par at September 30, 2024) reflect the applicable exchange rates as of each balance sheet date. The effects of changes in foreign currency exchange rates during the period are recorded in earnings as a component of selling, general and administrative expenses. Changes in the exchange rates produced pre-tax losses of $1.5 billion in the third quarter and $136 million in the first nine months of 2024 compared to pre-tax gains of $582 million in the third quarter and $1.1 billion in the first nine months of 2023.

Notes payable and other borrowings of our railroad, utilities and energy businesses are summarized below (dollars in millions). The weighted average interest rates and maturity date ranges are based on borrowings as of September 30, 2024.

 

 

 

Weighted
Average
Interest Rate

 

 

September 30,
2024

 

 

December 31,
2023

 

Railroad, utilities and energy:

 

 

 

 

 

 

 

 

 

Berkshire Hathaway Energy Company (“BHE”) and subsidiaries:

 

 

 

 

 

 

 

 

 

BHE senior unsecured debt due 2025-2053

 

 

4.4

%

 

$

13,105

 

 

$

13,101

 

Subsidiary and other debt due 2024-2064

 

 

4.6

%

 

 

43,452

 

 

 

39,072

 

Short-term borrowings

 

 

6.0

%

 

 

773

 

 

 

4,148

 

Pilot Travel Centers (“Pilot”) and subsidiaries

 

 

—

 

 

 

—

 

 

 

5,776

 

Burlington Northern Santa Fe (“BNSF”) and subsidiaries due 2024-2097

 

 

4.7

%

 

 

23,526

 

 

 

23,482

 

 

 

 

 

$

80,856

 

 

$

85,579

 

 

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 such debt. These borrowing arrangements generally contain various covenants, including covenants which pertain to leverage ratios, interest coverage ratios and/or debt service coverage ratios. In the first nine months of 2024, BHE subsidiaries issued $5.4 billion of term debt with a weighted average interest rate of 5.4% and maturity dates ranging from 2029 to 2055 and BHE and its subsidiaries repaid term debt and short-term borrowings aggregating approximately $4.4 billion. In October 2024, a BHE subsidiary issued $900 million of 5.6% senior notes due in 2054.

At December 31, 2023, Pilot’s borrowings primarily represented secured syndicated loans. In March 2024, Pilot borrowed $5.7 billion from certain Berkshire insurance subsidiaries, which Pilot used to repay its then outstanding third-party borrowings. BNSF’s borrowings are primarily senior unsecured debentures. In the first nine months of 2024, BNSF issued $1.3 billion of 5.5% debentures due in 2055 and repaid $1.2 billion of maturing debentures. As of September 30, 2024, BHE, BNSF and their subsidiaries were in compliance with all applicable debt covenants. Berkshire does not guarantee any debt, borrowings or lines of credit of BHE, BNSF or their subsidiaries.

Unused lines of credit and commercial paper capacity to support operations and provide additional liquidity for our subsidiaries were approximately $11.5 billion at September 30, 2024, of which approximately $10.4 billion related to BHE and its subsidiaries.