Berkshire Hathaway 2015 Annual Report Download - page 16

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At BNSF, price comparisons between major railroads are far more difficult to make because of significant
differences in both their mix of cargo and the average distance it is carried. To supply a very crude measure,
however, our revenue per ton-mile was just under 3¢ last year, while shipping costs for customers of the other four
major U.S.-based railroads were at least 40% higher, ranging from 4.2¢ to 5.3¢.
Both BHE and BNSF have been leaders in pursuing planet-friendly technology. In wind generation, no
state comes close to Iowa, where last year megawatt-hours we generated from wind equaled 47% of all
megawatt-hours sold to our retail customers. (Additional wind projects to which we are committed will take that
figure to 58% in 2017.)
BNSF, like other Class I railroads, uses only a single gallon of diesel fuel to move a ton of freight almost
500 miles. That makes the railroads four times as fuel-efficient as trucks! Furthermore, railroads alleviate highway
congestion – and the taxpayer-funded maintenance expenditures that come with heavier traffic – in a major way.
Here are the key figures for BHE and BNSF:
Berkshire Hathaway Energy (89.9% owned) Earnings (in millions)
2015 2014 2013
U.K. utilities ..................................................... $ 460 $ 527 $ 362
Iowa utility ...................................................... 314 298 230
Nevada utilities .................................................. 586 549 (58)
PacifiCorp (primarily Oregon and Utah) ............................... 1,026 1,010 982
Gas pipelines (Northern Natural and Kern River) ........................ 401 379 385
Canadian transmission utility ........................................ 170 16 —
Renewable projects ............................................... 175 194 50
HomeServices ................................................... 191 139 139
Other (net) ...................................................... 27 26 12
Operating earnings before corporate interest and taxes .................... 3,350 3,138 2,102
Interest ......................................................... 499 427 296
Income taxes .................................................... 481 616 170
Net earnings ..................................................... $ 2,370 $ 2,095 $ 1,636
Earnings applicable to Berkshire ..................................... $ 2,132 $ 1,882 $ 1,470
BNSF Earnings (in millions)
2015 2014 2013
Revenues ....................................................... $21,967 $ 23,239 $ 22,014
Operating expenses ............................................... 14,264 16,237 15,357
Operating earnings before interest and taxes ............................ 7,703 7,002 6,657
Interest (net) ..................................................... 928 833 729
Income taxes .................................................... 2,527 2,300 2,135
Net earnings ..................................................... $ 4,248 $ 3,869 $ 3,793
I currently expect increased after-tax earnings at BHE in 2016, but lower earnings at BNSF.
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