Berkshire Hathaway 2010 Annual Report Download - page 48

Notes to Consolidated Financial Statements (Continued)
(7) Receivables (Continued)
As a part of the evaluation process, credit quality indicators are reviewed and loans are designated as performing or
non-performing. At December 31, 2010, approximately 98% of consumer installment and commercial loan balances were
determined to be performing and approximately 93% of those balances were current as to payment status.
(8) Inventories
Inventories are comprised of the following (in millions).
2010 2009
Raw materials ............................................................................ $1,066 $ 908
Work in process and other ................................................................... 509 438
Finished manufactured goods ................................................................ 2,180 1,975
Goods acquired for resale ................................................................... 3,346 2,826
$7,101 $6,147
(9) Goodwill and other intangible assets
A reconciliation of the change in the carrying value of goodwill is as follows (in millions).
2010 2009
Balance at beginning of year ............................................................... $33,972 $33,781
Acquisition of BNSF ..................................................................... 14,803 —
Other ................................................................................. 231 191
Balance at end of year .................................................................... $49,006 $33,972
Intangible assets other than goodwill are included in other assets and are summarized as follows (in millions).
2010 2009
Gross carrying
amount
Accumulated
amortization
Gross carrying
amount
Accumulated
amortization
Insurance and other ........................................ $6,944 $1,816 $6,334 $1,632
Railroad, utilities and energy ................................. 2,082 306 76 24
$9,026 $2,122 $6,410 $1,656
Trademarks and tradenames ................................. $2,027 $ 166 $2,013 $ 114
Patents and technology ...................................... 2,922 1,013 1,656 808
Customer relationships ...................................... 2,676 612 2,080 426
Other .................................................... 1,401 331 661 308
$9,026 $2,122 $6,410 $1,656
Intangible assets with definite lives are amortized based on the estimated pattern in which the economic benefits are
expected to be consumed or on a straight-line basis over their estimated economic lives. Amortization expense was
$692 million in 2010, $414 million in 2009 and $362 million in 2008. Estimated amortization expense over the next five
years is as follows (in millions): 2011 – $720; 2012 – $700; 2013 – $681; 2014 – $632; and 2015 – $345. Intangible assets
with indefinite lives as of December 31, 2010 and 2009 were $1,635 million and $1,127 million, respectively. Intangible
assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be
recoverable.
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