Berkshire Hathaway 2010 Annual Report Download - page 44

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Notes to Consolidated Financial Statements (Continued)
(3) Investments in fixed maturity securities
Investments in securities with fixed maturities as of December 31, 2010 and 2009 are summarized below (in millions).
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Fair
Value
December 31, 2010
U.S. Treasury, U.S. government corporations and agencies ................... $ 2,151 $ 48 $ (2) $ 2,197
States, municipalities and political subdivisions ............................ 3,356 225 — 3,581
Foreign governments ................................................. 11,721 242 (51) 11,912
Corporate bonds ..................................................... 11,773 2,304 (23) 14,054
Mortgage-backed securities ............................................ 2,838 312 (11) 3,139
$31,839 $3,131 $ (87) $34,883
Insurance and other .................................................. $30,862 $3,028 $ (87) $33,803
Finance and financial products ......................................... 977 103 — 1,080
$31,839 $3,131 $ (87) $34,883
December 31, 2009
U.S. Treasury, U.S. government corporations and agencies ................... $ 2,362 $ 46 $ (1) $ 2,407
States, municipalities and political subdivisions ............................ 3,689 275 (1) 3,963
Foreign governments ................................................. 11,518 368 (42) 11,844
Corporate bonds ..................................................... 13,094 2,080 (502) 14,672
Mortgage-backed securities ............................................ 3,961 310 (26) 4,245
$34,624 $3,079 $(572) $37,131
Insurance and other .................................................. $33,317 $2,984 $(572) $35,729
Finance and financial products ......................................... 1,307 95 — 1,402
$34,624 $3,079 $(572) $37,131
Unrealized losses include $24 million at December 31, 2010 and $471 million at December 31, 2009, related to securities
that have been in an unrealized loss position for 12 months or more. During the fourth quarter of 2010, we recorded other-than-
temporary impairment charges of $1,020 million with respect to certain fixed maturity securities where we concluded that we
were unlikely to receive all remaining contractual principal and interest amounts when due. These securities had been in an
unrealized loss position for more than two years.
The amortized cost and estimated fair value of securities with fixed maturities at December 31, 2010 are summarized
below 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.
Due in one
year or less
Due after one
year through
five years
Due after five
years through
ten years
Due after
ten years
Mortgage-backed
securities Total
Amortized cost ........................... $7,095 $14,734 $4,448 $2,724 $2,838 $31,839
Fair value ............................... 7,231 16,146 5,091 3,276 3,139 34,883
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