v3.26.1
Notes payable and other borrowings
 3 Months Ended
Mar. 31, 2026
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 March 31, 2026.

 

 

Weighted
Average
Interest Rate

 

 

March 31,
2026

 

 

December 31,
2025

 

Insurance and other:

 

 

 

 

 

 

 

 

 

Berkshire Hathaway Inc. (“Berkshire”):

 

 

 

 

 

 

 

 

 

U.S. Dollar denominated due 2043-2047

 

 

4.5

%

 

$

1,048

 

 

$

3,547

 

Euro denominated due 2027-2041

 

 

1.4

%

 

 

4,133

 

 

 

4,201

 

Japanese Yen denominated due 2026-2060

 

 

1.2

%

 

 

14,727

 

 

 

14,914

 

Berkshire Hathaway Finance Corporation (“BHFC”):

 

 

 

 

 

 

 

 

 

U.S. Dollar denominated due 2027-2052

 

 

3.6

%

 

 

14,476

 

 

 

14,475

 

Great Britain Pound denominated due 2039-2059

 

 

2.5

%

 

 

2,281

 

 

 

2,323

 

Euro denominated due 2030-2034

 

 

1.8

%

 

 

1,440

 

 

 

1,464

 

Other subsidiary borrowings due 2026-2051

 

 

5.1

%

 

 

3,492

 

 

 

3,518

 

Short-term subsidiary borrowings

 

 

5.7

%

 

 

1,238

 

 

 

1,321

 

 

 

 

 

$

42,835

 

 

$

45,763

 

Berkshire borrowings consist of senior unsecured debt. Berkshire repaid approximately $2.5 billion of maturing debt in the first quarter of 2025. In April 2026, Berkshire issued ¥272.3 billion ($1.7 billion) of senior notes with maturity dates ranging from 2029 to 2056 and a weighted average interest rate of 2.4% and repaid ¥133.9 billion ($844 million) of maturing senior notes.

Borrowings of BHFC, a wholly-owned finance subsidiary of Berkshire, consist of senior unsecured notes used to fund manufactured home 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 March 31, 2026. 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 ¥2,343 billion par at March 31, 2026) 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 gains of $325 million in the first quarter of 2026 and pre-tax losses of $936 million in the first quarter of 2025.

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 March 31, 2026.

 

 

Weighted
Average
Interest Rate

 

 

March 31,
2026

 

 

December 31,
2025

 

Railroad, utilities and energy:

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

BHE senior unsecured debt due 2028-2053

 

 

4.4

%

 

$

11,462

 

 

$

11,461

 

Subsidiary and other debt due 2026-2064

 

 

4.9

%

 

 

50,024

 

 

 

45,798

 

Short-term borrowings

 

 

4.7

%

 

 

1,005

 

 

 

1,997

 

Burlington Northern Santa Fe (“BNSF”) and subsidiaries due 2026-2097

 

 

4.8

%

 

 

23,560

 

 

 

24,062

 

 

 

 

 

$

86,051

 

 

$

83,318

 

 

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. BNSF’s borrowings are primarily senior unsecured debentures. As of March 31, 2026, 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.

In the first quarter of 2026, BHE subsidiaries issued $4.6 billion of term debt, with a weighted average interest rate of 5.8% and maturity dates ranging from 2029 to 2056. BHE and its subsidiaries repaid term debt of $210 million and short-term borrowings were reduced by $992 million. In the first quarter of 2026, BNSF repaid $503 million of term debt.

Unused and available lines of credit and commercial paper capacity to support operations and provide additional liquidity for our subsidiaries were approximately $11.7 billion at March 31, 2026, of which approximately $10.2 billion related to BHE and its subsidiaries.