Berkshire Hathaway 2012 Annual Report Download - page 43

Notes to Consolidated Financial Statements (Continued)
(4) Investments in equity securities (Continued)
Investments in equity securities are reflected in our Consolidated Balance Sheets as follows (in millions).
December 31,
2012 2011
Insurance and other ...................................................................... $86,467 $76,063
Railroad, utilities and energy * ............................................................. 675 488
Finance and financial products * ............................................................ 520 440
$87,662 $76,991
* Included in other assets.
(5) Other investments
Other investments include fixed maturity and equity securities of The Goldman Sachs Group, Inc. (“GS”), General Electric
Company (“GE”), Wm. Wrigley Jr. Company (“Wrigley”), The Dow Chemical Company (“Dow”) and Bank of America
Corporation (“BAC”). A summary of other investments follows (in millions).
Cost
Net
Unrealized
Gains
Fair
Value
Carrying
Value
December 31, 2012
Other fixed maturity and equity securities:
Insurance and other ................................................ $13,109 $3,823 $16,932 $16,057
Finance and financial products ....................................... 3,148 1,804 4,952 4,952
$16,257 $5,627 $21,884 $21,009
December 31, 2011
Other fixed maturity and equity securities:
Insurance and other ................................................ $13,051 $1,055 $14,106 $13,111
Finance and financial products ....................................... 3,198 623 3,821 3,810
$16,249 $1,678 $17,927 $16,921
In 2008, we acquired 50,000 shares of 10% Cumulative Perpetual Preferred Stock of GS (“GS Preferred”) and warrants to
purchase 43,478,260 shares of common stock of GS (“GS Warrants”) for a combined cost of $5 billion. The GS Preferred was
redeemable at any time by GS at a price of $110,000 per share ($5.5 billion in aggregate). On April 18, 2011, GS fully
redeemed our GS Preferred investment. We continue to hold the GS Warrants, which expire on October 1, 2013. The GS
Warrants are exercisable for an aggregate cost of $5 billion ($115/share).
In 2008, we acquired 30,000 shares of 10% Cumulative Perpetual Preferred Stock of GE (“GE Preferred”) and warrants to
purchase 134,831,460 shares of common stock of GE (“GE Warrants”) for a combined cost of $3 billion. The GE Preferred was
redeemable by GE beginning in October 2011 at a price of $110,000 per share ($3.3 billion in aggregate). On October 17, 2011,
GE fully redeemed our GE Preferred investment. We continue to hold the GE Warrants, which expire on October 16, 2013. The
GE Warrants are exercisable for an aggregate cost of $3 billion ($22.25/share).
In 2008, we acquired $4.4 billion par amount of 11.45% Wrigley subordinated notes maturing in 2018 and $2.1 billion of
5% Wrigley preferred stock. The subordinated notes may be called prior to maturity at par plus the prepayment premium
applicable at that time. In 2009, we also acquired $1.0 billion par amount of Wrigley senior notes maturing in 2013 and 2014.
We currently own $800 million of the Wrigley senior notes and an unconsolidated joint venture in which we hold a 50%
economic interest owns $200 million. The Wrigley subordinated and senior notes are classified as held-to-maturity and we carry
these investments at cost, adjusted for foreign currency exchange rate changes that apply to certain of the senior notes. The
Wrigley preferred stock is classified as available-for-sale and recorded in our financial statements at fair value.
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