Berkshire Hathaway 2007 Annual Report Download - page 28

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27
BERKSHIRE HATHAWAY INC.
and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
Year Ended December 31,
2007 2006 2005
Cash flows from operating activities:
Net earnings................................................................................................ $ 13,213 $ 11,015 $ 8,528
Adjustments to reconcile net earnings to operating cash flows:
Investment gains ...................................................................................... (5,598) (1,811) (6,196)
Depreciation............................................................................................. 2,407 2,066 982
Minority interests..................................................................................... 354 258 104
Changes in operating assets and liabilities before business acquisitions:
Losses and loss adjustment expenses....................................................... (1,164) (2,704) 2,086
Deferred charges reinsurance assumed .................................................... 196 424 339
Unearned premiums................................................................................. (713) 637 (239)
Receivables and originated loans............................................................. (977) (59) (1,849)
Derivative contract assets and liabilities .................................................. 2,938 (563) 3,620
Income taxes ............................................................................................ 553 303 1,602
Other assets and liabilities ....................................................................... 1,341 629 469
Net cash flows from operating activities .................................................... 12,550 10,195 9,446
Cash flows from investing activities:
Purchases of securities with fixed maturities.............................................. (13,394) (7,747) (13,937)
Purchases of equity securities..................................................................... (19,111) (9,173) (8,021)
Sales of securities with fixed maturities ..................................................... 7,821 1,818 3,243
Redemptions and maturities of securities with fixed maturities ................. 9,158 10,313 7,142
Sales of equity securities ............................................................................ 8,054 3,778 1,629
Purchases of loans and finance receivables ................................................ (1,008) (365) (1,987)
Principal collections on loans and finance receivables............................... 1,229 985 911
Acquisitions of businesses, net of cash acquired........................................ (1,602) (10,132) (2,387)
Purchases of property, plant and equipment............................................... (5,373) (4,571) (2,195)
Other........................................................................................................... 798 1,017 1,761
Net cash flows from investing activities..................................................... (13,428) (14,077) (13,841)
Cash flows from financing activities:
Proceeds from borrowings of finance businesses....................................... 1,153 1,280 5,628
Proceeds from borrowings of utilities and energy businesses .................... 3,538 2,417 —
Proceeds from other borrowings................................................................. 121 215 521
Repayments of borrowings of finance businesses ...................................... (1,093) (244) (319)
Repayments of borrowings of utilities and energy businesses ................... (1,149) (516) —
Repayments of other borrowings................................................................ (995) (991) (628)
Changes in short term borrowings.............................................................. (596) 245 361
Other........................................................................................................... 387 84 188
Net cash flows from financing activities .................................................... 1,366 2,490 5,751
Effect of foreign currency exchange rate changes...................................... 98 117 (123)
Increase (decrease) in cash and cash equivalents ....................................... 586 (1,275) 1,233
Cash and cash equivalents at beginning of year............................................... 43,743 45,018 43,427
Cash and cash equivalents at end of year *.................................................. $44,329 $43,743 $44,660
* Cash and cash equivalents at end of year are comprised of the following:
Insurance and Other................................................................................... $37,703 $37,977 $40,471
Utilities and Energy.................................................................................... 1,178 343 —
Finance and Financial Products ................................................................ 5,448 5,423 4,189
$44,329 $43,743 $44,660
See accompanying Notes to Consolidated Financial Statements