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Management’s Discussion (Continued)<br />
Financial Condition (Continued)<br />
as of December 31, 2013 were approximately $29.6 billion which includes approximately $5.3 billion of NV Energy’s debt.<br />
BNSF and MidAmerican have aggregate debt and capital lease maturities in 2014 of $2.1 billion. Berkshire’s commitment to<br />
provide up to $2 billion of additional capital to MidAmerican to permit the repayment of its debt obligations or to fund its<br />
regulated utility subsidiaries expired on February 28, 2014 and has not been renewed. Berkshire does not guarantee the<br />
repayment of debt issued by BNSF, MidAmerican or any of their subsidiaries.<br />
Assets of the finance and financial products businesses, which consisted primarily of loans and finance receivables, cash<br />
and cash equivalents and fixed maturity and equity investments, were approximately $26.2 billion and $25.4 billion as of<br />
December 31, 2013 and December 31, 2012, respectively. Liabilities were $19.0 billion as of December 31, 2013 and $22.1<br />
billion as of December 31, 2012. As of December 31, 2013, notes payable and other borrowings of finance and financial<br />
products businesses were $12.7 billion and included approximately $11.2 billion of notes issued by Berkshire Hathaway<br />
Finance Corporation (“BHFC”). During 2013, BHFC issued $3.45 billion aggregate of new senior notes and repaid $3.45 billion<br />
of maturing senior notes. In January 2014, an additional $750 million of BHFC debt matured and was refinanced with a<br />
corresponding amount of new debt. We currently intend to issue additional new debt through BHFC to replace some or all of its<br />
upcoming debt maturities. The proceeds from the BHFC notes are used to finance originated loans and acquired loans of<br />
Clayton Homes. The full and timely payment of principal and interest on the BHFC notes is guaranteed by Berkshire.<br />
As described in Note 12 to the Consolidated Financial Statements, we are party to equity index put option and credit<br />
default contracts. With limited exception, these contracts contain no collateral posting requirements under any circumstances,<br />
including changes in either the fair value or intrinsic value of the contracts or a downgrade in Berkshire’s credit ratings. At<br />
December 31, 2013, the net liabilities recorded for such contracts were approximately $5.3 billion and we had no collateral<br />
posting requirements.<br />
We regularly access the credit markets, particularly through our railroad, utilities and energy and finance and financial<br />
products businesses. Restricted access to credit markets at affordable rates in the future could have a significant negative impact<br />
on our operations.<br />
In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Reform Act”) was signed into law. The<br />
Reform Act reshapes financial regulations in the United States by creating new regulators, regulating new markets and market<br />
participants and providing new enforcement powers to regulators. Virtually all major areas of the Reform Act have been subject<br />
to extensive rulemaking proceedings being conducted both jointly and independently by multiple regulatory agencies, some of<br />
which have been completed and others that are expected to be finalized during the next several months. Although the Reform<br />
Act may adversely affect some of our business activities, it is not currently expected to have a material impact on our<br />
consolidated financial results or financial condition.<br />
Contractual Obligations<br />
We are party to contracts associated with ongoing business and financing activities, which will result in cash payments to<br />
counterparties in future periods. Certain obligations reflected in our Consolidated Balance Sheets, such as notes payable, require<br />
future payments on contractually specified dates and in fixed and determinable amounts. Other obligations pertain to the<br />
acquisition of goods or services in the future, such as minimum rentals under operating leases, that are not currently reflected in<br />
the financial statements. Such obligations will be reflected in future periods as the goods are delivered or services provided.<br />
Amounts due as of the balance sheet date for purchases where the goods and services have been received and a liability incurred<br />
are not included in the following table to the extent that such amounts are due within one year of the balance sheet date.<br />
The timing and/or amount of the payments under certain contracts are contingent upon the outcome of future events.<br />
Actual payments will likely vary, perhaps significantly, from estimates reflected in the table that follows. Most significantly, the<br />
timing and amount of payments arising under property and casualty insurance contracts are contingent upon the outcome of<br />
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