Berkshire Hathaway 2002 Annual Report Download - page 49

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48
Notes to Consolidated Financial Statements (Continued)
(17) Litigation
GEICO is a defendant in a number of class action lawsuits related to the use of replacement repair parts not
produced by the original auto manufacturer, the calculation of total loss value and whether to pay diminished value as
part of the settlement of certain claims. Management intends to vigorously defend GEICOs position on these claim
settlement procedures. However, these lawsuits are in various stages of development and the ultimate outcome cannot
be reasonably determined.
Berkshire and its subsidiaries are parties in a variety of legal actions arising out of the normal course of business.
In particular, such legal actions affect Berkshires 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. Berkshire does not believe that such normal
and routine litigation will have a material effect on its financial condition or results of operations.
(18) Business segment data
Information related to Berkshires reportable business operating segments is shown below.
Business Identity Business Activity
GEICO Underwriting private passenger automobile insurance
mainly by direct response methods
General Re Underwriting excess-of-loss, quota-share and facultative
reinsurance worldwide
Berkshire Hathaway Reinsurance Group Underwriting excess-of-loss and quota-share reinsurance for
property and casualty insurers and reinsurers
Berkshire Hathaway Primary Group Underwriting multiple lines of property and casualty
insurance policies for primarily commercial accounts
Fruit of the Loom, Garan, Fechheimer Brothers,
H.H. Brown Shoe, Lowell Shoe, Justin Brands
and Dexter Shoe (Apparel)
Manufacturing and distribution of a variety of footwear and
clothing products
Acme Building Brands, Benjamin Moore, Johns
Manville and MiTek (Building products)
Manufacturing and distribution of a variety of building
materials and related products and services
Finance and financial products businesses Proprietary investing, real estate financing, transportation
equipment leasing, commercial and consumer lending and
risk management products
FlightSafety and NetJets (Flight services) Training to operators of aircraft and ships and providing
fractional ownership programs for general aviation aircraft
Nebraska Furniture Mart, R.C. Willey Home
Furnishings, Star Furniture Company, Jordans
Furniture, Borsheims, Helzberg Diamond Shops
and Ben Bridge Jeweler (Retail)
Retail sales of home furnishings, appliances, electronics,
fine jewelry and gifts
Scott Fetzer Companies Diversified manufacturing and distribution of various
consumer and commercial products with principal brand
names including Kirby and Campbell Hausfeld
Shaw Industries Manufacturing and distribution of carpet and floor
coverings under a variety of brand names
Other businesses not specifically identified above consist of: Buffalo News, a daily newspaper publisher in
Western New York; International Dairy Queen, which licenses and services a system of about 6,000 Dairy Queen stores;
Sees Candies, a manufacturer and distributor of boxed chocolates and other confectionery products; CORT Business
Services, a leading national provider of rental furniture and related services; Albecca, which designs, manufactures, and
distributes high-quality custom picture framing products; CTB International, a manufacturer of equipment and systems
for the poultry, hog, egg production and grain industries and The Pampered Chef, a direct seller of houseware products.