Berkshire Hathaway 2006 Annual Report Download - page 38

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37
(3) Significant business acquisitions (Continued)
The results of operations for each of these businesses are included in Berkshire’ s consolidated results from the effective date of
each acquisition. The following table sets forth certain unaudited pro forma consolidated earnings data for 2006 and 2005, as if each
acquisition that was completed during 2005 and 2006 was consummated on the same terms at the beginning of each year. The
earnings data for 2005 also reflects the pro forma consolidation of MidAmerican. Amounts are in millions, except per share amounts.
2006 2005
Total revenues.................................................................................................................................... $100,992 $95,836
Net earnings....................................................................................................................................... 11,107 8,624
Earnings per equivalent Class A common share................................................................................ 7,204 5,601
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition
for PacifiCorp and IMC (in millions).
PacifiCorp IMC
Property, plant and equipment ........................................................................................................... $10,051 $ 606
Goodwill ............................................................................................................................................ 1,118 2,072
Other assets........................................................................................................................................ 3,087 1,988
Assets acquired ........................................................................................................................ 14,256 4,666
Accounts payable, accruals and other liabilities ................................................................................ 4,969 263
Notes payable and other borrowings.................................................................................................. 4,167 153
Minority interests............................................................................................................................... — 248
Liabilities assumed and minority interests ............................................................................... 9,136 664
Net assets acquired ............................................................................................................................ $ 5,120 $ 4,002
In December 2006, Berkshire agreed to acquire TTI, Inc., a privately held electronic component distributor headquartered in
Fort Worth, Texas. TTI, Inc. is the largest distributor specialist of passive, interconnect electromechanical components. The
acquisition is expected to be completed in the first quarter of 2007.
(4) Loans and receivables
Receivables of insurance and other businesses are comprised of the following (in millions).
December 31, December 31,
2006 2005
Insurance premiums receivable...................................................................................... $ 4,418 $ 4,406
Reinsurance recoverables............................................................................................... 2,961 2,990
Trade and other receivables ........................................................................................... 5,884 5,340
Allowances for uncollectible accounts .......................................................................... (382) (339)
$12,881 $12,397
Loans and finance receivables of finance and financial products businesses are comprised of the following (in millions).
December 31, December 31,
2006 2005
Consumer installment loans and finance receivables .................................................... $10,325 $ 9,792
Commercial loans and finance receivables.................................................................... 1,336 1,481
Allowances for uncollectible loans ................................................................................ (163) (186)
$11,498 $11,087
Allowances for uncollectible loans primarily relate to consumer installment loans. Provisions for consumer loan losses were
$210 million in 2006 and $232 million in 2005. Loan charge-offs were $243 million in 2006 and $110 million in 2005. Consumer
loan amounts are net of acquisition discounts of $484 million at December 31, 2006 and $579 million at December 31, 2005.