Berkshire Hathaway 1998 Annual Report Download - page 25

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24
BERKSHIRE HATHAWAY INC.
and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
Year Ended December 31,
1998 1997 1996
Cash flows from operating activities:
Net earnings .............................................. $2,830 $1,901 $2,489
Adjustments to reconcile net earnings to cash flows
from operating activities:
Realized investment gain .................................... (2,415) (1,106) (2,484)
Depreciation and amortization ................................ 265 227 151
Changes in assets and liabilities before effects from
business acquisitions:
Losses and loss adjustment expenses .......................... 347 576 352
Deferred charges re reinsurance assumed ...................... (80) (142) 52
Unearned premiums ...................................... 179 90 (9)
Receivables ............................................. (56) (120) (127)
Accounts payable, accruals and other liabilities .................. 4 547 558
Income taxes ............................................ (329) 383 222
Other ................................................... (88) (21) 56
Net cash flows from operating activities ....................... 657 2,335 1,260
Cash flows from investing activities:
Purchases of securities with fixed maturities ...................... (2,697) (6,837) (2,465)
Purchases of equity securities and other investments ................ (1,865) (714) (1,423)
Proceeds from sales of securities with fixed maturities ............... 6,339 3,397 277
Proceeds from redemptions and maturities of securities
with fixed maturities ....................................... 2,132 779 792
Proceeds from sales of equity securities and other investments ......... 4,868 2,016 1,531
Loans and investments originated in finance businesses ............. (1,028) (491) (577)
Principal collection on loans and investments
originated in finance businesses ............................... 295 276 351
Acquisitions of businesses, net of cash acquired .................... 4,971 (775) (1,975)
Other .................................................... (302) (182) (19)
Net cash flows from investing activities ........................ 12,713 (2,531)(3,508)
Cash flows from financing activities:
Proceeds from borrowings of finance businesses ................... 120 157 285
Proceeds from other borrowings ............................... 1,339 1,074 1,604
Repayments of borrowings of finance businesses ................... (83) (214) (427)
Repayments of other borrowings ............................... (1,318) (1,112) (1,170)
Net proceeds from issuance of Class B Common Stock .............. — — 565
Other .................................................... 3 (1) (3)
Net cash flows from financing activities ....................... 61 (96) 854
Increase (decrease) in cash and cash equivalents ................. 13,431 (292) (1,394)
Cash and cash equivalents at beginning of year ..................... 1,058 1,350 2,744
Cash and cash equivalents at end of year * ...................... $14,489 $1,058 $1,350
* Cash and cash equivalents at end of year are comprised of the following:
Finance and financial products businesses ..................... $ 907 $ 56 $ 10
Other ................................................. 13,582 1,002 1,340
$14,489 $ 1,058 $ 1,350
See accompanying Notes to Consolidated Financial Statements