Berkshire Hathaway 2008 Annual Report Download - page 60

Notes to Consolidated Financial Statements (Continued)
(20) Contingencies and Commitments (Continued)
MidAmerican’s commitments to purchase coal, electricity and natural gas. As of December 31, 2008, commitments under all
such subsidiary arrangements were approximately $6.6 billion in 2009, $4.0 billion in 2010, $2.9 billion in 2011, $2.5 billion in
2012, $2.1 billion in 2013 and $7.2 billion after 2013.
Berkshire is obligated to acquire the remaining minority shareholders’ interests of Marmon (36.4%) in stages between
2011 and 2014. Based upon the initial purchase price, the cost to Berkshire of the minority shareholders’ interest would be
approximately $2.7 billion. However, the consideration payable for the minority shareholders’ interest is contingent upon future
operating results of Marmon and the per share cost could be greater than or less than the initial per share price.
Berkshire is also obligated under certain conditions to acquire minority ownership interests of certain consolidated, but not
wholly-owned subsidiaries, pursuant to the terms of certain shareholder agreements with the minority shareholders. The
consideration payable for such interests is generally based on the fair value of the subsidiary. If Berkshire acquired all such
outstanding minority ownership interest holdings as of December 31, 2008, the cost to Berkshire would have been
approximately $4 billion. However, the timing and the amount of any such future payments that might be required are
contingent on future actions of the minority owners and future operating results of the related subsidiaries.
(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.
The tabular information that follows shows data of reportable segments reconciled 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. Furthermore, Berkshire management does not consider investment and
derivative gains/losses 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
BH Finance, Clayton Homes, XTRA, CORT and other financial
services (“Finance and financial products”)
Proprietary investing, manufactured housing and related
consumer financing, transportation equipment leasing,
furniture leasing, life annuities and risk management
products
Marmon An association of approximately 130 manufacturing and
service businesses that operate within 11 diverse business
sectors
McLane Company Wholesale distribution of groceries and non-food items
MidAmerican Regulated electric and gas utility, including power
generation and distribution activities in the U.S. and
internationally; domestic real estate brokerage
Shaw Industries Manufacturing and distribution of carpet and floor coverings
under a variety of brand names
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