Berkshire Hathaway 2011 Annual Report Download - page 54

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Notes to Consolidated Financial Statements (Continued)
(17) Fair value measurements (Continued)
believed to be used by market participants in estimating fair value. Our credit default and equity index put option contracts
are not exchange traded and certain contract terms are not standard in derivatives markets. For example, we are not
required to post collateral under most of our contracts. For these reasons, we classified these contracts as Level 3.
Financial assets and liabilities measured and carried at fair value on a recurring basis in our financial statements are
summarized, according to the hierarchy previously described, as follows (in millions).
Total
Fair Value
Quoted
Prices
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable Inputs
(Level 3)
December 31, 2011
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and
agencies .................................... $ 2,935 $ 843 $ 2,090 $ 2
States, municipalities and political subdivisions ....... 3,070 — 3,069 1
Foreign governments ............................ 10,843 4,444 6,265 134
Corporate bonds ............................... 12,448 — 11,801 647
Mortgage-backed securities ....................... 2,892 — 2,892 —
Investments in equity securities ....................... 76,991 76,906 63 22
Other investments .................................. 11,669 — — 11,669
Net derivative contract (assets)/liabilities:
Railroad, utilities and energy ..................... 265 12 276 (23)
Finance and financial products:
Equity index put options ..................... 8,499 — — 8,499
Credit default obligations .................... 1,472 — — 1,472
Other .................................... (88) — (48) (40)
Total
Fair Value
Quoted
Prices
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable Inputs
(Level 3)
December 31, 2010
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and
agencies .................................... $ 2,197 $ 535 $ 1,658 $ 4
States, municipalities and political subdivisions ....... 3,581 — 3,581 —
Foreign governments ............................ 11,912 5,633 6,167 112
Corporate bonds ............................... 14,054 23 13,346 685
Mortgage-backed securities ....................... 3,139 — 3,139 —
Investments in equity securities ....................... 61,513 61,390 88 35
Other investments .................................. 17,589 — — 17,589
Net derivative contract (assets)/liabilities:
Railroad, utilities and energy ..................... 390 7 52 331
Finance and financial products:
Equity index put options ..................... 6,712 — — 6,712
Credit default obligations .................... 1,239 — — 1,239
Other .................................... 77 — 137 (60)
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