Berkshire Hathaway 2015 Annual Report Download - page 57

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Notes to Consolidated Financial Statements (Continued)
(11) Goodwill and other intangible assets
A reconciliation of the change in the carrying value of goodwill is as follows (in millions).
December 31,
2015 2014
Balance at beginning of year ............................................................... $60,714 $57,011
Acquisitions of businesses ................................................................ 2,563 4,006
Other, including foreign currency translation .................................................. (569) (303)
Balance at end of year .................................................................... $62,708 $60,714
Other intangible assets are summarized as follows (in millions).
December 31, 2015 December 31, 2014
Gross carrying
amount
Accumulated
amortization
Gross carrying
amount
Accumulated
amortization
Insurance and other ........................................ $14,610 $5,462 $13,667 $4,464
Railroad, utilities and energy ................................. 888 239 2,254 1,551
$15,498 $5,701 $15,921 $6,015
Trademarks and trade names ................................. $ 3,041 $ 765 $ 3,105 $ 599
Patents and technology ..................................... 4,252 2,050 5,425 3,133
Customer relationships ..................................... 5,474 2,131 5,573 1,757
Other ................................................... 2,731 755 1,818 526
$15,498 $5,701 $15,921 $6,015
Amortization expense was $1,106 million in 2015, $1,155 million in 2014 and $1,090 million in 2013. Estimated
amortization expense over the next five years is as follows (in millions): 2016 – $1,009; 2017 – $905; 2018 – $839, 2019 – $733
and 2020 – $628. Intangible assets with indefinite lives as of December 31, 2015 and 2014 were $2,964 million and $2,586
million, respectively.
(12) Derivative contracts
Derivative contracts have been entered into primarily through our finance and financial products and our energy
businesses. Derivative contract liabilities associated with our finance and financial products businesses are concentrated in
equity index put option and credit default contracts. A summary of those liabilities and related notional values follows (in
millions).
December 31, 2015 December 31, 2014
Liabilities
Notional
Value Liabilities
Notional
Value
Equity index put options ................................................ $3,552 $27,722(1) $4,560 $29,469(1)
Credit default ......................................................... 284 7,792(2) 250 7,792(2)
$3,836 $4,810
(1) Represents the aggregate undiscounted amounts payable assuming that the value of each index is zero at each contract’s
expiration date. Certain of these contracts are denominated in foreign currencies. Notional amounts are based on the
foreign currency exchange rates as of each balance sheet date.
(2) Represents the maximum undiscounted future value of losses payable under the contracts, if all underlying issuers default
and the residual value of the specified obligations is zero.
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