Berkshire Hathaway 2010 Annual Report Download - page 60

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Notes to Consolidated Financial Statements (Continued)
(19) Pension plans (Continued)
The components of net periodic pension expense for each of the three years ending December 31, 2010 are as follows
(in millions).
2010 2009 2008
Service cost ......................................................................... $165 $162 $176
Interest cost ......................................................................... 543 455 452
Expected return on plan assets .......................................................... (528) (417) (463)
Other .............................................................................. 69 35 20
Net pension expense .................................................................. $249 $235 $185
The accumulated benefit obligation is the actuarial present value of benefits earned based on service and compensation
prior to the valuation date. As of December 31, 2010 and 2009, the accumulated benefit obligation was $9,954 million and
$7,379 million, respectively. The projected benefit obligation is the actuarial present value of benefits earned based upon service
and compensation prior to the valuation date and, if applicable, includes assumptions regarding future compensation levels.
Information regarding projected benefit obligations is shown in the table that follows (in millions).
2010 2009
Projected benefit obligation, beginning of year ................................................. $ 8,136 $7,587
Service cost ............................................................................. 165 162
Interest cost ............................................................................. 543 455
Benefits paid ............................................................................ (528) (408)
BNSF acquisition ........................................................................ 1,986 —
Actuarial (gain) or loss and other ............................................................ 296 340
Projected benefit obligation, end of year ...................................................... $10,598 $8,136
Benefit obligations under qualified U.S. defined benefit plans are funded through assets held in trusts and are not included
as assets in our Consolidated Financial Statements. Pension obligations under certain non-U.S. plans and non-qualified U.S.
plans are unfunded. As of December 31, 2010, projected benefit obligations of non-qualified U.S. plans and non-U.S. plans
which are not funded through assets held in trusts were $797 million. A reconciliation of the changes in plan assets and a
summary of plan assets held as of December 31, 2010 and 2009 is presented in the table that follows (in millions).
2010 2009
Plan assets at beginning of year .............................................................. $5,926 $5,322
Employer contributions ..................................................................... 776 224
Benefits paid ............................................................................. (528) (408)
Actual return on plan assets ................................................................. 795 749
BNSF acquisition ......................................................................... 1,342 —
Other and expenses ........................................................................ (65) 39
Plan assets at end of year .................................................................... $8,246 $5,926
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