Berkshire Hathaway 2011 Annual Report Download - page 44

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Notes to Consolidated Financial Statements (Continued)
(7) Receivables
Receivables of insurance and other businesses are comprised of the following (in millions).
December 31,
2011 2010
Insurance premiums receivable ............................................................. $ 6,663 $ 6,342
Reinsurance recoverable on unpaid losses .................................................... 2,953 2,735
Trade and other receivables ................................................................ 9,772 12,223
Allowances for uncollectible accounts ....................................................... (376) (383)
$19,012 $20,917
As of December 31, 2010, trade and other receivables included approximately $3.9 billion related to the redemption of an
investment. The redemption proceeds were received on January 10, 2011.
Loans and finance receivables of finance and financial products businesses are comprised of the following (in millions).
December 31,
2011 2010
Consumer installment loans and finance receivables ............................................ $13,463 $14,042
Commercial loans and finance receivables .................................................... 860 1,557
Allowances for uncollectible loans .......................................................... (389) (373)
$13,934 $15,226
Allowances for uncollectible loans primarily relate to consumer installment loans. Provisions for consumer loan losses
were $337 million in 2011 and $343 million in 2010. Loan charge-offs, net of recoveries, were $321 million in 2011 and $349
million in 2010. Consumer loan amounts are net of unamortized acquisition discounts of $500 million at December 31, 2011
and $580 million at December 31, 2010. At December 31, 2011, approximately 96% of consumer installment loan balances
were evaluated collectively for impairment whereas about 82% of commercial loan balances were evaluated individually for
impairment. As a part of the evaluation process, credit quality indicators are reviewed and loans are designated as performing or
non-performing. At December 31, 2011, approximately 98% of consumer installment and commercial loan balances were
determined to be performing and approximately 92% of those balances were current as to payment status.
(8) Inventories
Inventories are comprised of the following (in millions).
December 31,
2011 2010
Raw materials ............................................................................ $1,598 $1,066
Work in process and other ................................................................... 897 509
Finished manufactured goods ................................................................ 3,114 2,180
Goods acquired for resale ................................................................... 3,366 3,346
$8,975 $7,101
(9) Goodwill and other intangible assets
A reconciliation of the change in the carrying value of goodwill is as follows (in millions).
December 31,
2011 2010
Balance at beginning of year ............................................................... $49,006 $33,972
Acquisition of businesses ................................................................. 4,179 15,069
Other ................................................................................. 28 (35)
Balance at end of year .................................................................... $53,213 $49,006
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