Berkshire Hathaway 1999 Annual Report Download - page 69

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68
BERKSHIRE HATHAWAY INC.
FINANCE AND FINANCIAL PRODUCTS BUSINESSES
Scott Fetzer Financial Group, Inc., Berkshire Hathaway Life Insurance Co. of Nebraska, Berkshire Hathaway Credit
Corporation, BH Finance and General Re Financial Products make up Berkshire's finance and financial products
businesses.
Balance Sheets
(dollars in millions)
1999 1998
Assets
Cash and cash equivalents .................................................. $ 623 $ 907
Investment in securities with fixed maturities:
Held to maturity, at cost (fair value $2,223 in 1999; $1,366 in 1998) ................ 2,293 1,227
Trading, at fair value (cost $11,330 in 1999; $5,279 in 1998) ...................... 11,277 5,219
Available for sale, at fair value (cost $997 in 1999; $745 in 1998) .................. 999 743
Trading account assets ..................................................... 5,881 6,234
Securities purchased under agreements to resell .................................. 1,171 1,083
Other .................................................................. 1,985 1,576
$24,229 $16,989
Liabilities
Annuity reserves and policyholder liabilities .................................... $ 843 $ 816
Securities sold under agreements to repurchase .................................. 10,216 4,065
Securities sold but not yet purchased .......................................... 1,174 1,181
Trading account liabilities .................................................. 5,931 5,834
Notes payable and other borrowings .......................................... 1,998 1,503
Other .................................................................. 2,303 2,428
22,465 15,827
Equity
Berkshire shareholders’ ................................................... 1,764 1,162
$24,229 $16,989
Statements of Earnings
(dollars in millions)
1999 1998 1997
Revenues:
Annuity premiums earned ............................................. $ — $ 95 $ 248
Other revenues ..................................................... 846 293 112
846 388 360
Expenses:
Interest expense .................................................... 596 27 24
Annuity benefits and underwriting expenses ............................... 54 146 287
General and administrative ............................................ 87 16 21
737 189 332
Earnings from operations before income taxes .............................. 109 199 28
Income tax expense .................................................. 32 70 10
Net earnings ....................................................... $ 77 $ 129 $ 18
General Re Financial Products, (“GRFP”) was acquired in connection with the acquisition of General Re Corporation
on December 21, 1998. This statement reflects GRFP’s operating results for the year ended December 31, 1999.
These statements do not conform to GAAP in all respects
These statements are unaudited