Berkshire Hathaway 2001 Annual Report Download - page 35

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34
Notes to Consolidated Financial Statements (Continued)
(7) Receivables
Receivable balances as of December 31, 2001 and 2000 are as follows (in millions).
2001 2000
Insurance and reinsurance premiums............................................................................ $ 5,571 $ 5,624
Ceded loss reserves ...................................................................................................... 2,959 2,997
Trade receivables and other.......................................................................................... 3,396 3,143
$11,926 $11,764
(8) Accounts payable, accruals and other liabilities
Accounts payable, accruals and other liabilities as of December 31, 2001 and 2000 are as follows (in millions).
2001 2000
Life and health insurance benefits................................................................................ $ 2,058 $ 1,959
Other balances due to policyholders............................................................................. 3,319 3,554
Trade payables and other.............................................................................................. 4,249 2,861
$ 9,626 $ 8,374
(9) Finance and financial products businesses
Berkshire’ s finance and financial products businesses consist of numerous businesses engaged in a variety of
activities. The principal business activities include proprietary investing (BH Finance), real estate financing (Berkshire
Hathaway Credit Corporation), transportation equipment leasing (XTRA Corporation, acquired in September 2001), risk
management products (General Re Securities or “GRS”), annuities (Berkshire Hathaway Life Insurance Company of
Nebraska) and Berkadia LLC (see Note (c) below).
In January 2002, General Re announced that it would commence a long-term run-off of GRS. The run-off is
expected to occur over a period of years, during which, GRS will limit its new business to certain risk management
transactions and will unwind its existing asset and liability positions in an orderly manner.
Assets and liabilities of Berkshire's finance and financial products businesses as of December 31, 2001 and 2000
are summarized below (in millions).
2001 2000
Assets
Cash and cash equivalents................................................................................................................ $ 1,185 $ 341
Investments in securities with fixed maturities:
Held-to-maturity, at cost (fair value $1,888 in 2001; $1,734 in 2000)......................................... 1,813 1,664
Available-for-sale, at fair value (cost $21,125 in 2001; $880 in 2000)*...................................... 21,061 880
Trading, at fair value (cost $2,297 in 2001; $5,194 in 2000) ....................................................... 2,252 5,244
Trading account assets ..................................................................................................................... 5,561 5,429
Loans and other receivables............................................................................................................. 6,262 1,186
Securities purchased under agreements to resell ............................................................................. 333 680
Other................................................................................................................................................. 3,124 1,405
$41,591 $16,829
Liabilities
Securities sold under agreements to repurchase .............................................................................. $21,465 $ 3,386
Securities sold but not yet purchased............................................................................................... 354 715
Trading account liabilities................................................................................................................ 4,803 4,974
Notes payable and other borrowings**............................................................................................ 9,019 2,116
Annuity reserves and policyholder liabilities...................................................................................894868
Other................................................................................................................................................. 1,256 2,671
$37,791 $14,730
* Consists primarily of U.S. Treasury securities and obligations of U.S. government corporations and agencies.
** Payments of principal amounts of notes payable and other borrowings during the next five years are due as follows (in
millions). 2002 2003 2004 2005 2006
$2,405 $490 $459 $73 $5,022