Berkshire Hathaway 2014 Annual Report Download - page 47

BERKSHIRE HATHAWAY INC.
BUSINESS ACTIVITIES
Berkshire Hathaway Inc. is a holding company owning subsidiaries that engage in a number of diverse business activities
including insurance and reinsurance, freight rail transportation, utilities and energy, finance, manufacturing, services and
retailing. Included in the group of subsidiaries that underwrite insurance and reinsurance is GEICO, the second largest private
passenger auto insurer in the United States and two of the largest reinsurers in the world, General Re and the Berkshire
Hathaway Reinsurance Group. Other subsidiaries that underwrite property and casualty insurance include: National Indemnity
Company, Berkshire Hathaway Homestate Insurance Companies, Medical Protective Company, Applied Underwriters, U.S.
Liability Insurance Company, Central States Indemnity Company, BoatU.S., Berkshire Hathaway Guard Insurance Companies
and Berkshire Hathaway Specialty Insurance Company.
Burlington Northern Santa Fe (“BNSF”) operates one of the largest railroad systems in North America. In serving the
Midwest, Pacific Northwest and the Western, Southwestern and Southeastern regions and ports of the U.S., BNSF transports a
range of products and commodities derived from manufacturing, agricultural and natural resource industries. Berkshire
Hathaway Energy Company (“BHE”) is an international energy holding company owning a wide variety of operating
companies engaged in the generation, transmission and distribution of energy. BHE’s principal operating energy companies are:
MidAmerican Energy Company, PacifiCorp and NV Energy; Northern Powergrid; AltaLink; Kern River Gas Transmission
Company and Northern Natural Gas; and BHE Renewables. In addition, BHE owns HomeServices of America, a real estate
brokerage firm.
Numerous business activities are conducted through Berkshire’s manufacturing services, retailing and finance subsidiaries.
The Marmon Group is an international association of approximately 185 manufacturing and service businesses that operate
independently within diverse business sectors. The Lubrizol Corporation is a specialty chemical company that produces and
supplies chemical products for transportation, industrial and consumer markets. IMC International Metalworking Companies is
an industry leader in the metal cutting tools business. McLane Company is a wholesale distributor of groceries and nonfood
items to discount retailers, convenience stores, quick service restaurants and others. Berkshire’s finance and financial products
businesses primarily engage in proprietary investing strategies, consumer lending (Clayton Homes) and transportation
equipment and furniture leasing (UTLX, XTRA and CORT).
Shaw Industries is the world’s largest manufacturer of tufted broadloom carpet. Benjamin Moore is a formulator,
manufacturer and retailer of architectural and industrial coatings. Johns Manville is a leading manufacturer of insulation and
building products. Acme Brick is a manufacturer of face brick and concrete masonry products. MiTek Inc. produces steel
connector products and engineering software for the building components market. Fruit of the Loom, Russell, Vanity Fair,
Garan, Fechheimer, H.H. Brown Shoe Group, Justin Brands and Brooks Sports manufacture, license and distribute apparel and
footwear under a variety of brand names. FlightSafety International provides training to aircraft operators. NetJets provides
fractional ownership programs for general aviation aircraft. Nebraska Furniture Mart, R.C. Willey Home Furnishings, Star
Furniture and Jordan’s Furniture are retailers of home furnishings. Borsheims, Helzberg Diamond Shops and Ben Bridge
Jeweler are retailers of fine jewelry.
In addition, other manufacturing, service and retail businesses include: The Buffalo News and BH Media Group (publisher
of The Omaha World-Herald and 28 other daily newspapers); See’s Candies, a manufacturer and seller of boxed chocolates and
other confectionery products; Scott Fetzer, a diversified manufacturer and distributor of commercial and industrial products;
Larson-Juhl, a designer, manufacturer and distributor of high-quality picture framing products; CTB, a manufacturer of
equipment for the livestock and agricultural industries; International Dairy Queen, a licensor and service provider to over 6,500
stores that offer prepared dairy treats and food; The Pampered Chef, a premier direct seller of kitchen tools in the U.S.; Forest
River, a leading manufacturer of leisure vehicles in the U.S.; Business Wire, a leading global distributor of corporate news,
multimedia and regulatory filings; TTI, Inc., a leading distributor of electronic components; Richline Group, a leading jewelry
manufacturer; Oriental Trading Company, a direct retailer of party supplies, school supplies and toys and novelties; and Charter
Brokerage, a leading provider of global trade services. Berkshire also has a major economic interest in Heinz, one of the world’s
leading marketers and producers of food products.
Operating decisions for the various Berkshire businesses are made by managers of the business units. Investment decisions
and all other capital allocation decisions are made for Berkshire and its subsidiaries by Warren E. Buffett, in consultation with
Charles T. Munger. Mr. Buffett is Chairman and Mr. Munger is Vice Chairman of Berkshire’s Board of Directors.
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