Berkshire Hathaway 2011 Annual Report Download - page 60

Notes to Consolidated Financial Statements (Continued)
(20) Contingencies and Commitments (Continued)
In the first quarter of 2011, we acquired an additional 16.6% of the outstanding common stock of Marmon, thus increasing
our total ownership interest to 80.2%. The cost of this additional share purchase was approximately $1.5 billion. The purchase
of these shares was accounted for as an acquisition of noncontrolling interests. Accordingly, the difference of $614 million
between the consideration paid and the prior carrying amount of the noncontrolling interests acquired was recorded as a
reduction to Berkshire’s shareholders’ equity in 2010. Berkshire will acquire substantially all of the remaining noncontrolling
interests in Marmon in 2013 or 2014. 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 price paid in 2011.
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. If we acquired all such outstanding noncontrolling interests as of December 31,
2011, the cost 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 noncontrolling owners and future operating results of the related
subsidiaries.
(21) 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 our
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 related to Berkshire’s acquisition 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
insurers and reinsurers
Berkshire Hathaway Primary Group Underwriting multiple lines of property and casualty
insurance policies for primarily commercial accounts
BNSF Operates one of the largest railroad systems in North
America
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 and
furniture leasing
Marmon An association of approximately 140 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
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