Berkshire Hathaway 2010 Annual Report Download - page 98

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Management’s Discussion (Continued)
Commodity Price Risk (Continued)
impacted if the costs of wholesale electricity, fuel or natural gas are higher than what is permitted to be recovered in rates.
MidAmerican also uses futures, options and swap agreements to economically hedge gas and electric commodity prices for
physical delivery to non-regulated customers. MidAmerican does not engage in a material amount of proprietary trading
activities.
The table that follows summarizes our commodity price risk on energy derivative contracts of MidAmerican as of
December 31, 2010 and 2009 and shows the effects of a hypothetical 10% increase and a 10% decrease in forward market prices
by the expected volumes for these contracts as of each date. The selected hypothetical change does not reflect what could be
considered the best or worst case scenarios. Dollars are in millions.
Fair Value
Net Assets
(Liabilities) Hypothetical Price Change
Estimated Fair Value after
Hypothetical Change in
Price
December 31, 2010 .................................... $(613) 10% increase $(546)
10% decrease (680)
December 31, 2009 .................................... $(438) 10% increase $(398)
10% decrease (478)
FORWARD-LOOKING STATEMENTS
Investors are cautioned that certain statements contained in this document, as well as some statements in periodic press
releases and some oral statements of Berkshire officials during presentations about Berkshire, are “forward-looking” statements
within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include
statements that are predictive in nature, that depend upon or refer to future events or conditions, that include words such as
“expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” or similar expressions. In addition, any statements
concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or
prospects, and possible future Berkshire actions, which may be provided by management, are also forward-looking statements
as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are
subject to risks, uncertainties, and assumptions about us, economic and market factors and the industries in which we do
business, among other things. These statements are not guaranties of future performance and we have no specific intention to
update these statements.
Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a
number of factors. The principal important risk factors that could cause our actual performance and future events and actions to
differ materially from such forward-looking statements, include, but are not limited to, changes in market prices of our
investments in fixed maturity and equity securities, losses realized from derivative contracts, the occurrence of one or more
catastrophic events, such as an earthquake, hurricane or an act of terrorism that causes losses insured by our insurance
subsidiaries, changes in insurance laws or regulations, changes in federal income tax laws, and changes in general economic and
market factors that affect the prices of securities or the industries in which we do business.
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