Berkshire Hathaway 2000 Annual Report Download - page 34

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33
(4) Investments in securities with fixed maturities
The amortized cost and estimated fair values of investments in securities with fixed maturities as of December 31,
2000 and 1999 are as follows (in millions):
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost
(2)
Gains Losses Value
December 31, 2000(1)
Bonds:
U.S. Treasury securities and obligations of
U.S. government corporations and agencies .................. $ 3,662 $ 26 $ (9) $ 3,679
Obligations of states, municipalities
and political subdivisions ............................................. 8,185 45 (57) 8,173
Obligations of foreign governments................................. 1,944 19 (20) 1,943
Corporate bonds ............................................................. 5,918 147 (209) 5,856
Redeemable preferred stocks ............................................. 102 — (5) 97
Mortgage-backed securities ............................................... 12,609 275 (65) 12,819
$32,420 $512 $(365)$32,567
Gross
Gross
Estimated
Amortized
Unrealized
Unrealized
Fair
Cost(2)
Gains
Losses
Value
December 31, 1999(1)
Bonds:
U.S. Treasury securities and obligations of
U.S. government corporations and agencies
..................
$ 4,001
$ 3
$ (189)
$ 3,815
Obligations of states, municipalities
and political subdivisions
.............................................
9,029
13
(436)
8,606
Obligations of foreign governments
.................................
2,208
6
(49)
2,165
Corporate bonds
.............................................................
5,901
21
(237)
5,685
Redeemable preferred stocks
.............................................
133
1
(5)
129
Mortgage-backed securities ............................................... 10,157 7 (342) 9,822
$31,429
$ 51
$(1,258)
$30,222
(1) Amounts above exclude securities with fixed maturities held by finance and financial products businesses. See
Note 7.
(2) In connection with the acquisition of General Re on December 21, 1998, fixed maturity securities with a fair
value of $17.6 billion were acquired. Such amount was approximately $1.2 billion in excess of General Re’s
historical amortized cost. The unamortized excess amount was $680 million at December 31, 2000 and $940
million at December 31, 1999.
Shown below are the amortized cost and estimated fair values of securities with fixed maturities at December 31,
2000, by contractual maturity dates. Actual maturities will differ from contractual maturities because issuers of certain of
the securities retain early call or prepayment rights. Amounts are in millions. Estimated
Amortized Fair
Cost Value
Due in one year or less ......................................................................................... $ 4,557 $ 4,616
Due after one year through five years.................................................................... 5,665 5,613
Due after five years through ten years ................................................................... 4,343 4,313
Due after ten years ............................................................................................... 5,246 5,206
19,811 19,748
Mortgage-backed securities .................................................................................. 12,609 12,819
$32,420 $32,567