Berkshire Hathaway 1998 Annual Report Download - page 24

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23
BERKSHIRE HATHAWAY INC.
and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS
(dollars in millions except per share amounts)
Year Ended December 31,
1998 1997 1996
Revenues:
Insurance premiums earned .............................. $ 5,481 $ 4,761 $ 4,118
Sales and service revenues ............................... 4,675 3,615 3,095
Interest, dividend and other investment income ............... 1,049 916 778
Income from finance and financial products businesses ......... 212 32 25
Realized investment gain ................................ 2,415 1,106 2,484
13,832 10,430 10,500
Cost and expenses:
Insurance losses and loss adjustment expenses ................ 4,040 3,420 3,089
Insurance underwriting expenses .......................... 1,184 880 798
Cost of products and services sold ......................... 3,018 2,187 1,884
Selling, general and administrative expenses ................. 1,056 921 862
Goodwill amortization .................................. 111 83 61
Interest expense ....................................... 109 112 100
9,518 7,603 6,794
Earnings before income taxes and minority interest .......... 4,314 2,827 3,706
Income taxes ......................................... 1,457 898 1,197
Minority interest ...................................... 27 28 20
Net earnings .......................................... $ 2,830 $ 1,901 $ 2,489
Average common shares outstanding * ..................... 1,251,363 1,233,192 1,205,257
Net earnings per common share * ......................... $ 2,262 $ 1,542 $ 2,065
*Average shares outstanding include average Class A Common shares and average Class B Common
shares determined on an equivalent Class A Common Stock basis. Net earnings per common share shown
above represents net earnings per equivalent Class A Common share. Net earnings per Class B Common
share is equal to one-thirtieth (1/30) of such amount or $75 per share for 1998, $51 per share for 1997
and $69 per share for 1996.
See accompanying Notes to Consolidated Financial Statements