Berkshire Hathaway 2004 Annual Report Download - page 52

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51
(21) Business segment data
Berkshire’ s reportable business segments are organized in a manner that reflects how management views those
business activities. Certain businesses have been grouped together for segment reporting based upon similar products or
product lines, marketing, selling and distribution characteristics, even though those business units are operated under
separate local management. There are approximately 40 separate business units.
The tabular information that follows shows data of reportable segments reconciled as needed to amounts reflected
in the Consolidated Financial Statements. Intersegment transactions are not eliminated in instances where management
considers those transactions in assessing the results of the respective segments. In 2004, Berkshire adopted the
provisions of EITF 00-21 (“Accounting for Revenue Arrangements with Multiple Deliverables”). As a result, for
consolidated reporting purposes, the method of recognizing revenue related to fractional aircraft sales was changed.
Management continues to evaluate the results of NetJets under the prior revenue recognition criteria and thus has shown
the revenues and earnings before taxes for the Flight Services segment using the former revenue recognition method.
Furthermore, Berkshire management does not consider investment gains or amortization of purchase accounting
adjustments in assessing the performance of reporting units. Collectively, these items are included in reconciliations of
segment amounts to consolidated amounts.
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, including underwear, activewear,
children’ s clothes and uniforms
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
BH Finance, Clayton Homes, XTRA, CORT,
Berkshire Hathaway Life and General Re
Securities (“Finance and financial products”)
Proprietary investing, manufactured housing and related
consumer financing, transportation equipment leasing,
furniture leasing, life annuities 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
McLane Company Wholesale distributing of groceries and non-food items
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
Shaw Industries Manufacturing and distribution of carpet and floor
coverin
g
s under a variet
y
of brand names
Other businesses not specifically identified consist of: Scott Fetzer, a diversified manufacturer and distributor of
commercial and industrial products; Buffalo News, a 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; Larson-Juhl, which designs, manufactures, and
distributes 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 kitchen tools.