Berkshire Hathaway 2007 Annual Report Download - page 27

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26
BERKSHIRE HATHAWAY INC.
and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS
(dollars in millions except per share amounts)
Year Ended December 31,
2007 2006 2005
Revenues:
Insurance and Other:
Insurance premiums earned.............................................................. $31,783 $23,964 $21,997
Sales and service revenues ............................................................... 58,243 51,803 46,138
Interest, dividend and other investment income ............................... 4,979 4,382 3,487
Investment gains/losses .................................................................... 5,405 1,697 5,728
100,410 81,846 77,350
Utilities and Energy:
Operating revenues........................................................................... 12,376 10,301 —
Other................................................................................................. 252 343 —
12,628 10,644 —
Finance and Financial Products:
Interest income ................................................................................. 1,717 1,610 1,554
Investment gains/losses .................................................................... 193 114 468
Derivative gains/losses ..................................................................... (89) 824 (788)
Other................................................................................................. 3,386 3,501 3,079
5,207 6,049 4,313
118,245 98,539 81,663
Costs and expenses:
Insurance and Other:
Insurance losses and loss adjustment expenses ................................ 21,010 13,068 15,482
Life and health insurance benefits.................................................... 1,786 1,618 1,634
Insurance underwriting expenses...................................................... 5,613 5,440 4,828
Cost of sales and services................................................................. 47,477 42,416 38,288
Selling, general and administrative expenses ................................... 7,098 5,932 5,328
Interest expense ................................................................................ 164 195 144
83,148 68,669 65,704
Utilities and Energy:
Cost of sales and operating expenses ............................................... 9,696 8,189 —
Interest expense................................................................................ 1,158 979 —
10,854 9,168 —
Finance and Financial Products:
Interest expense................................................................................ 588 550 579
Other................................................................................................. 3,494 3,374 3,112
4,082 3,924 3,691
98,084 81,761 69,395
Earnin
g
s before income taxes and e
q
uit
y
in earnin
g
s of
MidAmerican Energy Holdings Company................................... 20,161 16,778 12,268
Equity in earnings of MidAmerican Energy Holdings Company........ — — 523
Earnings before income taxes and minority interests .................... 20,161 16,778 12,791
Income taxes..................................................................................... 6,594 5,505 4,159
Minority shareholders’ interests ....................................................... 354 258 104
Net earnings ....................................................................................... $13,213 $11,015 $ 8,528
Average common shares outstanding * ............................................ 1,545,751 1,541,807 1,539,775
Net earnings per common share *.................................................... $ 8,548 $ 7,144 $ 5,538
* Average shares outstanding include average Class A common shares and average Class B common shares
determined on an equivalent Class A common stock basis. Net earnings per common share shown above represents
net earnings per equivalent Class A common share. Net earnings per Class B common share is equal to one-
thirtieth (1/30) of such amount or $285 per share for 2007, $238 per share for 2006 and $185 per share for 2005.
See accompanying Notes to Consolidated Financial Statements