Berkshire Hathaway 2008 Annual Report Download - page 54

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Notes to Consolidated Financial Statements (Continued)
(18) Common stock
Changes in issued and outstanding Berkshire common stock during the three years ended December 31, 2008 are shown in
the table below.
Class A, $5 Par Value Class B, $0.1667 Par Value
(1,650,000 shares authorized)
Shares Issued and Outstanding
(55,000,000 shares authorized)
Shares Issued and Outstanding
Balance December 31, 2005 ................................. 1,260,920 8,394,083
Conversions of Class A common stock to Class B common stock and
other .................................................. (143,352) 4,358,348
Balance December 31, 2006 ................................. 1,117,568 12,752,431
Conversions of Class A common stock to Class B common stock and
other .................................................. (36,544) 1,247,649
Balance December 31, 2007 ................................. 1,081,024 14,000,080
Conversions of Class A common stock to Class B common stock and
other .................................................. (22,023) 706,916
Balance December 31, 2008 ................................. 1,059,001 14,706,996
Each share of Class B common stock has dividend and distribution rights equal to one-thirtieth (1/30) of such rights of a
Class A share. Accordingly, on an equivalent Class A common stock basis there are 1,549,234 shares outstanding as of
December 31, 2008 and 1,547,693 shares as of December 31, 2007.
Each share of Class A common stock is convertible, at the option of the holder, into thirty shares of Class B common stock.
Class B common stock is not convertible into Class A common stock. On July 6, 2006, Berkshire’s Chairman and CEO, Warren
E. Buffett converted 124,998 shares of Class A common stock into 3,749,940 shares of Class B common stock. Each share of
Class B common stock possesses voting rights equivalent to one-two-hundredth (1/200) of the voting rights of a share of
Class A common stock. Class A and Class B common shares vote together as a single class.
(19) Pension plans
Several Berkshire subsidiaries individually sponsor defined benefit pension plans covering certain employees. Benefits
under the plans are generally based on years of service and compensation, although benefits under certain plans are based on
years of service and fixed benefit rates. The companies generally make contributions to the plans to meet regulatory
requirements plus additional amounts as determined by management based on actuarial valuations.
The components of net periodic pension expense for each of the three years ending December 31, 2008 are as follows (in
millions).
2008 2007 2006
Service cost ......................................................................... $176 $202 $199
Interest cost ......................................................................... 452 439 390
Expected return on plan assets .......................................................... (463) (444) (393)
Other .............................................................................. 20 65 67
Net pension expense .................................................................. $185 $262 $263
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