Berkshire Hathaway 2009 Annual Report Download - page 55

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Notes to Consolidated Financial Statements (Continued)
(20) Pension plans (Continued)
As of December 31, 2009 and 2008, the net funded status of the plans is summarized in the table that follows (in millions).
2009 2008
Amounts recognized in the Consolidated Balance Sheets:
Other liabilities ....................................................................... $2,288 $2,357
Other assets .......................................................................... (78) (92)
$2,210 $2,265
A reconciliation of amounts not yet recognized in net periodic benefit expense for the years ending December 31, 2009 and
2008 follows (in millions).
2009 2008
Net amount included in accumulated other comprehensive income, beginning of year ................... $(853) $(164)
Amount included in net periodic pension expense ............................................ 34 10
Gains (losses) current period and other .................................................... (79) (699)
Net amount included in accumulated other comprehensive income, end of year ........................ $(898)* $(853)
*Includes $72 million that is expected to be included in net periodic pension expense in 2010.
Weighted average interest rate assumptions used in determining projected benefit obligations were as follows. These rates
are substantially the same as the weighted average rates used in determining the net periodic pension expense.
2009 2008
Discount rate ................................................................................ 5.9% 6.3%
Expected long-term rate of return on plan assets .................................................... 6.9 6.9
Rate of compensation increase .................................................................. 4.0 4.2
Several of our subsidiaries also sponsor defined contribution retirement plans, such as 401(k) or profit sharing plans.
Employee contributions to the plans are subject to regulatory limitations and the specific plan provisions. Several of the plans
require that the subsidiary match these contributions up to levels specified in the plans and provide for additional discretionary
contributions as determined by management. The total expenses related to employer contributions for these plans were $540
million, $519 million and $506 million for the years ended December 31, 2009, 2008 and 2007, respectively.
(21) Contingencies and Commitments
We are parties in a variety of legal actions arising out of the normal course of business. In particular, such legal actions
affect our insurance and reinsurance businesses. Such litigation generally seeks to establish liability directly through insurance
contracts or indirectly through reinsurance contracts issued by Berkshire subsidiaries. Plaintiffs occasionally seek punitive or
exemplary damages. We do not believe that such normal and routine litigation will have a material effect on its financial
condition or results of operations. Berkshire and certain of its subsidiaries are also involved in other kinds of legal actions, some
of which assert or may assert claims or seek to impose fines and penalties in substantial amounts.
a) Governmental Investigations
On January 19, 2010, General Re Corporation (“General Re”), a wholly-owned subsidiary of Berkshire Hathaway Inc.
(“Berkshire”), entered into settlements with the U.S. Department of Justice (the “DOJ”) and the Securities and Exchange
Commission (the “SEC”) related to the investigations of non-traditional products previously disclosed by Berkshire. Berkshire,
General Re and certain of Berkshire’s insurance subsidiaries had been fully cooperating in these investigations since General Re
originally received subpoenas in January 2005.
As part of the settlements, General Re entered into a non-prosecution agreement (the “Non-Prosecution Agreement”) with
the DOJ. Under the terms of the Non-Prosecution Agreement, among other things, the DOJ has agreed not to prosecute General
Re for any crimes committed by General Re relating to General Re’s previously disclosed transaction with American
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