Berkshire Hathaway 1998 Annual Report Download - page 40

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39
(14) Supplemental cash flow information
A summary of supplemental cash flow information is presented in the following table (in millions):
1998 1997 1996
Cash paid during the year for:
Income taxes .................................................... $ 1,703 $ 498 $ 965
Interest ........................................................ 132 123 129
Non-cash investing and financing activities:
Liabilities assumed in connection with acquisitions of businesses ............ 36,064 25 4,172
Common shares issued in connection with acquisitions of businesses ......... 22,795 73 710
Fair value of investments acquired as part of exchanges and conversions ...... —1,837 1,618
Contingent value of Exchange Notes recognized in earnings ............... 54 298 —
Value of equity securities used to redeem Exchange Notes ................. 344 — —
(15) Business Segment Data
Berkshire adopted SFAS No. 131 “Disclosures about Segments of an Enterprise and Related Information” as of
December 31, 1998. SFAS No. 131 requires certain disclosures about operating segments in a manner that is consistent
with how management evaluates the performance of the segment. Information related to Berkshire’s reportable operating
segments is shown below. Prior years’ presentations are restated to conform to current year presentations.
Berkshire identified the following eleven business segments for purposes of 1998 reporting pursuant to SFAS
No. 131.
Business Identity Business Activity
GEICO Corporation Underwriting private passenger automobile insurance
mainly by direct response methods
Berkshire Hathaway Reinsurance Group Underwriting excess-of-loss and quota-share reinsurance
for property and casualty insurers and reinsurers
Berkshire Hathaway Direct Insurance Group Underwriting multiple lines of property and casualty
insurance policies for primarily commercial accounts
Buffalo News Publication of a daily and Sunday newspaper in Western
New York
FlightSafety and Executive Jet (“Flight Training to operators of aircraft and ships and providing
Services”) fractional ownership programs for general aviation aircraft
Nebraska Furniture Mart, R.C. Willey Home Retail sales of home furnishings, appliances and electronics
Furnishings and Star Furniture Company
(“Home Furnishings”)
International Dairy Queen Licensing and servicing a system of approximately 5,900
Dairy Queen stores
Helzberg’s Diamond Shops and Borsheim’s Retailing of fine jewelry
(“Jewelry”)
Scott Fetzer Companies Diversified manufacturing and distribution of various
consumer and commercial products with principal brand
names including Kirby and Campbell Hausfeld
See’s Candies Manufacture and distribution of boxed chocolates and other
confectionery products
H.H. Brown Shoe Company, Lowell Shoe, Inc. Manufacture and distribution of footwear
and Dexter Shoe Company (“Shoe Group”)
The segments identified above do not include the reinsurance business of General Re Corporation, which was acquired
by Berkshire on December 21, 1998. Beginning in 1999, General Re’s reinsurance business will be included as a reportable
segment. For further information regarding the acquisition, see Note 2.