Berkshire Hathaway 2009 Annual Report Download - page 59

Notes to Consolidated Financial Statements (Continued)
(21) Contingencies and Commitments (Continued)
Several of our subsidiaries have made long-term commitments to purchase goods and services used in their businesses. The
most significant of these relate to MidAmerican’s commitments to purchase coal, electricity and natural gas. As of
December 31, 2009, commitments under all such subsidiary arrangements were approximately $5.6 billion in 2010, $1.9 billion
in 2011, $1.8 billion in 2012, $1.7 billion in 2013, $1.7 billion in 2014 and $4.0 billion after 2014.
We are obligated to acquire the remaining 36% equity interests of Marmon in stages between 2011 and 2014. Based upon
the initial purchase price, the cost to Berkshire to acquire such interests would be approximately $2.7 billion. However, the
consideration ultimately payable 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.
Pursuant to the terms of shareholder agreements with noncontrolling shareholders in certain of our other less than wholly-
owned subsidiaries, we may be obligated to acquire their equity ownership interests. The consideration payable for such
interests is generally based on the fair value of the subsidiary. If we acquired all such outstanding noncontrolling interests
holdings as of December 31, 2009, the cost would have been approximately $3 billion. However, the timing and the amount of
any such future payments that might be required are contingent on future actions of the noncontrolling owners and future
operating results of the related subsidiaries.
(22) Business segment data
Our 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, our 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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