Berkshire Hathaway 2011 Annual Report Download - page 58

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Notes to Consolidated Financial Statements (Continued)
(19) Pension plans (Continued)
Fair value measurements for pension assets as of December 31, 2011 and 2010 follow (in millions).
Total
Fair Value
Quoted Prices
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
December 31, 2011
Cash and equivalents .......................................... $ 830 $ 797 $ 33 $ —
Government obligations ........................................ 915 534 380 1
Investment funds ............................................. 1,872 402 1,465 5
Corporate debt obligations ...................................... 1,180 95 1,085 —
Equity securities .............................................. 3,618 3,432 186 —
Other ....................................................... 735 37 314 384
$9,150 $5,297 $3,463 $390
December 31, 2010
Cash and equivalents .......................................... $ 474 $ 423 $ 51 $ —
Government obligations ........................................ 895 609 285 1
Investment funds ............................................. 2,020 597 1,423 —
Corporate debt obligations ...................................... 1,015 147 868 —
Equity securities .............................................. 3,069 3,069 — —
Other ....................................................... 773 54 349 370
$8,246 $4,899 $2,976 $371
Refer to Note 17 for a discussion of the three levels in the hierarchy of fair values. Pension assets measured at fair value
with significant unobservable inputs (Level 3) for the years ending December 31, 2011 and 2010 consisted primarily of real
estate and limited partnership interests. Pension plan assets are generally invested with the long-term objective of earning
sufficient amounts to cover expected benefit obligations, while assuming a prudent level of risk. Allocations may change as a
result of changing market conditions and investment opportunities. The expected rates of return on plan assets reflect subjective
assessments of expected invested asset returns over a period of several years. Generally, past investment returns are not given
significant consideration when establishing assumptions for expected long-term rates of returns on plan assets. Actual
experience will differ from the assumed rates.
The defined benefit pension plans expect to pay benefits to participants over the next ten years, reflecting expected future
service as appropriate, as follows (in millions): 2012 – $686; 2013 – $685; 2014 – $700; 2015 – $715; 2016 – $734; and 2017 to
2021 – $3,852. Sponsoring subsidiaries expect to contribute $545 million to defined benefit pension plans in 2012.
The net funded status of the defined benefit pension plans is summarized in the table that follows (in millions).
December 31,
2011 2010
Amounts recognized in the Consolidated Balance Sheets:
Accounts payable, accruals and other liabilities .............................................. $3,900 $2,425
Other assets .......................................................................... (58) (73)
$3,842 $2,352
56