Berkshire Hathaway 1999 Annual Report Download - page 31

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30
Notes to Consolidated Financial Statements (Continued)
(4) Investments in securities with fixed maturities
The amortized cost and estimated fair values of investments in securities with fixed maturities as of December 31,
1999 and 1998 are as follows (in millions):
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
(2)
December 31, 1999(1)
Bonds:
U.S. Treasury securities and obligations of
U.S. government corporations and agencies ........... $ 4,001 $ 3 $ (189) $ 3,815
Obligations of states, municipalities
and political subdivisions ........................ 9,029 13 (436) 8,606
Obligations of foreign governments ................. 2,208 6 (49) 2,165
Corporate bonds ............................... 5,901 21 (237) 5,685
Redeemable preferred stocks ....................... 133 1 (5) 129
Mortgage-backed securities ........................ 10,157 7 (342) 9,822
$31,429 $ 51 $(1,258) $30,222
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
(2)
December 31, 1998(1)
Bonds:
U.S. Treasury securities and obligations of
U.S. government corporations and agencies ........... $2,518 $10 — $2,528
Obligations of states, municipalities
and political subdivisions ........................ 9,574 73 — 9,647
Obligations of foreign governments ................. 2,864 — — 2,864
Corporate bonds ............................... 4,609 — — 4,609
Redeemable preferred stocks ....................... 359 3 (7) 355
Mortgage-backed securities ........................ 1,235 8 — 1,243
$21,159 $ 94 $ (7) $21,246
Amounts above exclude securities with fixed maturities held by finance and financial products businesses. See Note 7.
(1)
In connection with the acquisition of General Re on December 21, 1998, fixed maturity securities with a then fair value
(2)
of $17.6 billion were acquired. Such amount which was approximately $1.2 billion in excess of General Re’s historical
amortized cost. The writeup of $1.2 billion was included as a component of the amortized cost at December 31, 1998. Of
this amount, approximately $900 million remains unamortized and is included as a component of amortized cost as of
December 31, 1999.
Shown below are the amortized cost and estimated fair values of securities with fixed maturities at December 31,
1999, by contractual maturity dates. Actual maturities will differ from contractual maturities because issuers of certain of
the securities retain early call or prepayment rights. Amounts are in millions. Estimated
Amortized Fair
Cost Value
Due in one year or less ............................................. $ 1,975 $ 1,965
Due after one year through five years .................................. 5,443 5,339
Due after five years through ten years .................................. 5,335 5,126
Due after ten years ............................................... 8,519 7,970
21,272 20,400
Mortgage-backed securities ......................................... 10,157 9,822
$31,429 $30,222