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Notes to Consolidated Financial Statements (Continued)
(21) Pension plans (Continued)
A reconciliation of the pre-tax accumulated other comprehensive income (loss) related to defined benefit pension plans for
each of the two years ending December 31, 2013 follows (in millions).
2013 2012
Balance at beginning of year ............................................................... $(2,516) $(2,521)
Amount included in net periodic pension expense ........................................... 167 130
Gains (losses) current period and other ................................................... 2,435 (125)
Balance at end of year .................................................................... $ 86 $(2,516)
Weighted average interest rate assumptions used in determining projected benefit obligations and net periodic pension
expense were as follows.
2013 2012
Applicable to pension benefit obligations:
Discount rate .............................................................................. 4.6% 4.0%
Expected long-term rate of return on plan assets .................................................. 6.7 6.6
Rate of compensation increase ................................................................ 3.5 3.6
Discount rate applicable to pension expense ......................................................... 4.1 4.5
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
provide that the subsidiary match these contributions up to levels specified in the plans and provide for additional discretionary
contributions as determined by management. Employer contributions expensed with respect to these plans were $690 million,
$637 million and $572 million for the years ending December 31, 2013, 2012 and 2011, respectively.
(22) 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 our 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. We believe that any liability that may arise as a result
of other pending legal actions will not have a material effect on our consolidated financial condition or results of operations.
We lease certain manufacturing, warehouse, retail and office facilities as well as certain equipment. Rent expense for all
operating leases was $1,396 million in 2013, $1,401 million in 2012 and $1,288 million in 2011. Future minimum rental
payments for operating leases having initial or remaining non-cancelable terms in excess of one year are as follows. Amounts
are in millions.
After
2014 2015 2016 2017 2018
2018 Total
$1,245 $1,094 $967 $822 $691 $3,795 $8,614
Our subsidiaries regularly make commitments in the ordinary course of business to purchase goods and services used in
their businesses. The most significant of these commitments relate to our railroad, utilities and energy and fractional aircraft
ownership businesses. As of December 31, 2013, future purchase commitments under such arrangements are expected to be
paid as follows: $15.5 billion in 2014, $6.4 billion in 2015, $4.1 billion in 2016, $3.8 billion in 2017, $3.5 billion in 2018 and
$17.0 billion after 2018.
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