Berkshire Hathaway 2013 Annual Report Download - page 15

Ron Peltier continues to build HomeServices, MidAmerican’s real estate brokerage subsidiary. Last year
his operation made four acquisitions, the most significant being Fox & Roach, a Philadelphia-based company that
is the largest single-market realtor in the country.
HomeServices now has 22,114 agents (listed by geography on page 112), up 38% from 2012.
HomeServices also owns 67% of the Prudential and Real Living franchise operations, which are in the process of
rebranding their franchisees as Berkshire Hathaway HomeServices. If you haven’t yet, many of you will soon be
seeing our name on “for sale” signs.
Manufacturing, Service and Retailing Operations
“See that store,” Warren says, pointing at Nebraska Furniture Mart. “That’s a really good business.”
“Why don’t you buy it?” I said.
“It’s privately held,” Warren said.
“Oh,” I said.
“I might buy it anyway,” Warren said. “Someday.”
—Supermoney by Adam Smith (1972)
Our activities in this part of Berkshire cover the waterfront. Let’s look, though, at a summary balance
sheet and earnings statement for the entire group.
Balance Sheet 12/31/13 (in millions)
Assets Liabilities and Equity
Cash and equivalents ................... $ 6,625 Notes payable .................... $ 1,615
Accounts and notes receivable ............ 7,749 Other current liabilities ............. 8,965
Inventory ............................. 9,945 Total current liabilities ............. 10,580
Other current assets ..................... 716
Total current assets ..................... 25,035
Deferred taxes .................... 5,184
Goodwill and other intangibles ............ 25,617 Term debt and other liabilities ....... 4,405
Fixed assets ........................... 19,389 Non-controlling interests ............ 456
Other assets ........................... 4,274 Berkshire equity .................. 53,690
$74,315 $74,315
Earnings Statement (in millions)
2013 2012 2011
Revenues ........................................................ $95,291 $83,255 $72,406
Operating expenses ................................................ 88,414 76,978 67,239
Interest expense ................................................... 135 146 130
Pre-tax earnings ................................................... 6,742 6,131 5,037
Income taxes and non-controlling interests .............................. 2,512 2,432 1,998
Net earnings ...................................................... $ 4,230 $ 3,699 $ 3,039
Our income and expense data conforming to Generally Accepted Accounting Principles (“GAAP”) is on
page 29. In contrast, the operating expense figures above are non-GAAP and exclude some purchase-accounting
items (primarily the amortization of certain intangible assets). We present the data in this manner because Charlie
and I believe the adjusted numbers more accurately reflect the true economic expenses and profits of the businesses
aggregated in the table than do GAAP figures.
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