Berkshire Hathaway 2001 Annual Report Download - page 32

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(3) Investments in MidAmerican Energy Holdings Company (Continued)
MidAmerican is a global leader in the production of energy from diversified fuel sources including geothermal,
natural gas, hydroelectric, nuclear and coal. MidAmerican also is a leader in the supply and distribution of energy in the
U.S. and U.K. consumer markets.
Berkshire’ s aggregate investments in MidAmerican are included in the Consolidated Balance Sheets as
Investments in MidAmerican Energy Holdings Company. Berkshire is accounting for its investments in the common
and non-dividend paying convertible preferred stock pursuant to the equity method. The carrying value of these equity
method investments totaled $1,372 million at December 31, 2001 and $1,264 million at December 31, 2000. The 11%
non-transferable trust preferred security is classified as a held-to-maturity security, and is carried at cost.
The Consolidated Statements of Earnings reflect, as Income from MidAmerican Energy Holdings Company,
Berkshire’ s proportionate share of MidAmerican’ s net income with respect to the investments accounted for pursuant to
the equity method, as well as interest earned on the 11% trust preferred security. Income derived from equity method
investments totaled $115 million in 2001 and $66 million for the period beginning on March 14, 2000 and ending
December 31, 2000.
Condensed consolidated balance sheets of MidAmerican as of December 31, 2001 and 2000 are as follows.
Amounts are in millions.
2001 2000
Assets:
Properties, plants, contracts and equipment, net............................................... $ 6,527 $ 5,349
Goodwill........................................................................................................... 3,639 3,673
Other assets....................................................................................................... 2,452 2,659
$12,618 $11,681
Liabilities and shareholders’ equity:
Term debt.......................................................................................................... $ 7,163 $ 5,919
Redeemable preferred securities....................................................................... 1,009 1,032
Other liabilities and minority interests.............................................................. 2,734 3,154
10,906 10,105
Shareholders’ equity ......................................................................................... 1,712 1,576
$12,618 $11,681
Condensed consolidated statements of earnings of MidAmerican for the year ending December 31, 2001 and for
the period from March 14, 2000 through December 31, 2000 are as follows. Amounts are in millions.
2001 2000
Revenues:
Operating revenue............................................................................................. $ 5,061 $ 3,946
Other income .................................................................................................... 276 94
5,337 4,040
Costs and expenses:
Cost of sales and operating expenses................................................................ 3,794 3,041
Depreciation and amortization.......................................................................... 539 383
Interest expense and minority interest .............................................................. 606 482
4,939 3,906
Income before taxes.......................................................................................... 398 134
Income taxes..................................................................................................... 250 53
Cumulative effect of accounting change .......................................................... 5 —
Net income........................................................................................................ $ 143 $ 81