Berkshire Hathaway 2010 Annual Report Download - page 43

Notes to Consolidated Financial Statements (Continued)
(2) Significant business acquisitions (Continued)
Prior to February 12, 2010, we owned 76.8 million shares of BNSF (22.5% of the outstanding shares),
which were acquired between August 2006 and January 2009. We accounted for those shares pursuant to the
equity method and as of February 12, 2010, our investment had a carrying value of $6.6 billion. We are
accounting for the acquisition of BNSF pursuant to the acquisition method under Accounting Standards
Codification Section 805 Business Combinations (“ASC 805”). Upon completion of the acquisition of the
remaining BNSF shares, we were required under ASC 805 to re-measure our previously owned investment in
BNSF at fair value as of the acquisition date. In the first quarter of 2010, we recognized a one-time holding gain
of approximately $1.0 billion for the difference between the fair value of the BNSF shares and our carrying value
under the equity method.
The allocation of the aggregate $34.5 billion purchase price (including the fair value of the previously
owned shares of BNSF and the value of certain BNSF outstanding equity awards that were converted into
Berkshire Class B equity awards on the acquisition date) to BNSF’s assets and liabilities is summarized below
(in millions):
Assets:
Cash and cash equivalents ............. $ 971
Property, plant and equipment .......... 43,987
Goodwill ........................... 14,803
Other .............................. 5,702
$65,463
Liabilities and Net assets acquired:
Accounts payable and other liabilities .... $ 6,623
Notes payable and other borrowings ..... 11,142
Income taxes, principally deferred ....... 13,203
30,968
Net assets acquired ................... 34,495
$65,463
BNSF’s financial statements are included in our Consolidated Financial Statements beginning as of
February 13, 2010. The following table sets forth certain unaudited pro forma consolidated earnings data for the
years ended December 31, 2010 and 2009, as if the BNSF acquisition was consummated on the same terms at the
beginning of 2010 and 2009. Amounts are in millions, except earnings per share.
2010 2009
Total revenues .................................................. $138,004 $126,745
Net earnings attributable to Berkshire Hathaway shareholders ............ 13,213 9,525
Earnings per equivalent Class A common share attributable to Berkshire
Hathaway shareholders ......................................... 8,024 5,786
We had no significant business acquisitions in 2009. During 2008, we acquired approximately 64% of the
outstanding common stock of Marmon Holdings, Inc. (“Marmon”), a private company owned by trusts for the
benefit of members of the Pritzker Family of Chicago, for approximately $4.8 billion in the aggregate. Marmon
is an international association of approximately 130 manufacturing and service businesses that operate
independently within diverse business sectors. Under the terms of the purchase agreement, we will acquire the
remaining equity interests in Marmon between 2011 and 2014 for consideration to be based on the earnings of
Marmon. We also acquired several other relatively small businesses during 2008. Consideration paid for all
businesses acquired in 2008 was approximately $6.1 billion.
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