Berkshire Hathaway 2009 Annual Report Download - page 53

Notes to Consolidated Financial Statements (Continued)
(19) Common stock (Continued)
Class B common stock possesses dividend and distribution rights equal to one-fifteen-hundredth (1/1,500) of such rights of
Class A common stock. Each Class A common share is entitled to one vote per share. Each Class B common share possesses
voting rights equivalent to one-ten-thousandth (1/10,000) of the voting rights of a Class A share. Unless otherwise required
under Delaware General Corporation Law, Class A and Class B common shares vote as a single class.
On an equivalent Class A common stock basis, there were 1,551,749 shares outstanding as of December 31, 2009 and
1,549,234 shares outstanding as of December 31, 2008. The Class B stock split had no effect on the number of equivalent
Class A common shares outstanding. In addition to our common stock, we have 1,000,000 shares of preferred stock authorized,
none of which are issued and outstanding.
(20) Pension plans
Several of our 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. Contributions to the plans are made, generally, to meet regulatory requirements. Additional
amounts may be contributed as determined by management based on actuarial valuations.
The components of net periodic pension expense for each of the three years ending December 31, 2009 are as follows (in
millions).
2009 2008 2007
Service cost ......................................................................... $162 $176 $202
Interest cost ......................................................................... 455 452 439
Expected return on plan assets .......................................................... (417) (463) (444)
Other .............................................................................. 35 20 65
Net pension expense .................................................................. $235 $185 $262
The accumulated benefit obligation is the actuarial present value of benefits earned based on service and compensation
prior to the valuation date. As of December 31, 2009 and 2008, the accumulated benefit obligation was $7,379 million and
$6,693 million, respectively. The projected benefit obligation is the actuarial present value of benefits earned based upon service
and compensation prior to the valuation date and, if applicable, includes assumptions regarding future compensation levels.
Information regarding the projected benefit obligations is shown in the table that follows (in millions).
2009 2008
Projected benefit obligation, beginning of year .................................................. $7,587 $7,683
Service cost .............................................................................. 162 176
Interest cost .............................................................................. 455 452
Benefits paid ............................................................................. (408) (455)
Business acquisitions ....................................................................... — 249
Actuarial (gain) or loss and other ............................................................. 340 (518)
Projected benefit obligation, end of year ....................................................... $8,136 $7,587
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