v3.25.2
Notes payable and other borrowings
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Notes payable and other borrowings

Note 16. 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 June 30, 2025.

 

 

Weighted
Average
Interest Rate

 

 

June 30,
2025

 

 

December 31,
2024

 

Insurance and other:

 

 

 

 

 

 

 

 

 

Berkshire Hathaway Inc. (“Berkshire”):

 

 

 

 

 

 

 

 

 

U.S. Dollar denominated due 2026-2047

 

 

3.5

%

 

$

3,546

 

 

$

3,749

 

Euro denominated due 2027-2041

 

 

1.4

%

 

 

4,214

 

 

 

4,733

 

Japanese Yen denominated due 2025-2060

 

 

1.1

%

 

 

14,101

 

 

 

12,609

 

Berkshire Hathaway Finance Corporation (“BHFC”):

 

 

 

 

 

 

 

 

 

U.S. Dollar denominated due 2027-2052

 

 

3.6

%

 

 

14,472

 

 

 

14,469

 

Great Britain Pound denominated due 2039-2059

 

 

2.5

%

 

 

2,367

 

 

 

2,156

 

Euro denominated due 2030-2034

 

 

1.8

%

 

 

1,469

 

 

 

1,290

 

Other subsidiary borrowings due 2025-2051

 

 

5.0

%

 

 

3,572

 

 

 

4,564

 

Short-term subsidiary borrowings

 

 

6.3

%

 

 

1,299

 

 

 

1,315

 

 

 

 

 

$

45,040

 

 

$

44,885

 

Berkshire borrowings consist of senior unsecured debt. Berkshire repaid approximately $1.6 billion of maturing debt in the first six months of 2025. In April 2025, Berkshire issued ¥90 billion ($632 million) of senior notes with maturity dates ranging from 2028 to 2055 and a weighted average interest rate of 1.637%. Additionally, at the end of July 2025, Berkshire issued ¥151.5 billion ($1.0 billion) of senior notes with maturity dates ranging from 2030 to 2040 and a weighted average interest rate of 2.306%.

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 $1.7 billion at June 30, 2025. 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 (€4.85 billion, £1.75 billion and ¥2,036 billion par at June 30, 2025) reflect the applicable exchange rates as of each balance sheet date. The effects of changes in foreign currency exchange rates during the period on these borrowings are recorded in earnings as a component of selling, general and administrative expenses. Changes in the exchange rates produced pre-tax losses of $1.2 billion in the second quarter and $2.1 billion in the first six months of 2025 and pre-tax gains of $588 million in the second quarter and $1.4 billion in the first six months of 2024.

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 June 30, 2025.

 

 

Weighted
Average
Interest Rate

 

 

June 30,
2025

 

 

December 31,
2024

 

Railroad, utilities and energy:

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

BHE senior unsecured debt due 2028-2053

 

 

4.4

%

 

$

11,459

 

 

$

13,107

 

Subsidiary and other debt due 2025-2064

 

 

4.7

%

 

 

44,982

 

 

 

42,150

 

Short-term borrowings

 

 

5.1

%

 

 

1,687

 

 

 

1,123

 

Burlington Northern Santa Fe (“BNSF”) and subsidiaries due 2025-2097

 

 

4.8

%

 

 

23,852

 

 

 

23,497

 

 

 

 

 

$

81,980

 

 

$

79,877

 

 

Notes to Consolidated Financial Statements

Note 16. Notes payable and other borrowings

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 those which pertain to leverage ratios, interest coverage ratios and/or debt service coverage ratios. In the first six months of 2025, BHE subsidiaries issued $2.7 billion of term debt, with a weighted average interest rate of 6.5% and maturity dates ranging from 2035 to 2055, and BHE and its subsidiaries repaid term debt of $2.0 billion and increased short-term borrowings by $564 million.

BNSF’s borrowings are primarily senior unsecured debentures. In the first six months of 2025, BNSF repaid approximately $530 million of term debt and in June 2025, issued $900 million of 5.8% debentures due in 2056. As of June 30, 2025, 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 and available lines of credit and commercial paper capacity to support operations and provide additional liquidity for our subsidiaries were approximately $11.0 billion at June 30, 2025, of which approximately $9.8 billion related to BHE and its subsidiaries.