Berkshire Hathaway 2005 Annual Report Download - page 47

46
Notes to Consolidated Financial Statements (Continued)
(19) Supplemental cash flow information
A summary of supplemental cash flow information for each of the three years ending December 31, 2005 is presented in the
following table (in millions).
2005 2004 2003
Cash paid during the year for:
Income taxes............................................................................................................................... $2,695 $2,674 $3,309
Interest of finance and financial products businesses.................................................................. 484 495 372
Interest of insurance and other businesses .................................................................................. 149 146 215
Non-cash investing and financing activities:
Liabilities assumed in connection with acquisitions of businesses ............................................. 2,046 72 2,167
Fixed maturity securities sold offset by decrease in directly related repurchase
agreements ........................................................................................................................... 4,693 2,075 5,936
Value of equity securities and warrants exchanged for equity securities .................................... 5,877 585 —
(20) Business segment data
Berkshire’ s reportable business segments are organized in a manner that reflects how management views those business
activities. Certain businesses have been grouped together for segment reporting based upon similar products or product lines,
marketing, selling and distribution characteristics, even though those business units are operated under separate local management.
There are over 40 separate business units.
The tabular information that follows shows data of reportable segments reconciled to amounts reflected in the Consolidated
Financial Statements. Intersegment transactions are not eliminated in instances where management considers those transactions in
assessing the results of the respective segments. In 2004, Berkshire adopted the provisions of EITF 00-21 (“Accounting for Revenue
Arrangements with Multiple Deliverables”). As a result, for consolidated reporting purposes, the method of recognizing revenue
related to fractional aircraft sales was changed. Management continues to evaluate the results of NetJets under the prior revenue
recognition criteria and thus has shown the revenues and earnings before taxes for the Flight Services segment using the former
revenue recognition method. Furthermore, Berkshire management does not consider investment and derivative gains/losses or
amortization of purchase accounting adjustments in assessing the performance of reporting units. Collectively, these items are
included in reconciliations of segment amounts to consolidated amounts.
Business Identity Business Activity
GEICO Underwriting private passenger automobile insurance mainly by
direct response methods
General Re Underwriting excess-of-loss, quota-share and facultative
reinsurance worldwide
Berkshire Hathaway Reinsurance Group Underwriting excess-of-loss and quota-share reinsurance for
property and casualty insurers and reinsurers
Berkshire Hathaway Primary Group Underwriting multiple lines of property and casualty insurance
policies for primarily commercial accounts
Fruit of the Loom, Garan, Fechheimer Brothers, H.H.
Brown Shoe Group and Justin Brands (“Apparel”)
Manufacturing and distribution of a variety of footwear and
clothing products, including underwear, activewear, children’ s
clothes and uniforms
Acme Building Brands, Benjamin Moore, Johns
Manville and MiTek (“Building products”)
Manufacturing and distribution of a variety of building materials
and related products and services
BH Finance, Clayton Homes, XTRA, CORT, Berkshire
Hathaway Life and General Re Securities (“Finance
and financial products”)
Proprietary investing, manufactured housing and related consumer
financing, transportation equipment leasing, furniture leasing, life
annuities and risk management products
FlightSafety and NetJets (“Flight services”) Training to operators of aircraft and ships and providing fractional
ownership programs for general aviation aircraft
McLane Company Wholesale distributing of groceries and non-food items
Nebraska Furniture Mart, R.C. Willey Home
Furnishings, Star Furniture Company, Jordan’ s
Furniture, Borsheim’ s, Helzberg Diamond Shops and
Ben Bridge Jeweler (“Retail”)
Retail sales of home furnishings, appliances, electronics, fine
jewelry and gifts
Shaw Industries Manufacturing and distribution of carpet and floor coverings under
a variety of brand names
Other businesses not specifically identified consist of: Scott Fetzer, a diversified manufacturer and distributor of commercial
and industrial products; Buffalo News, a newspaper publisher in Western New York; International Dairy Queen, which licenses and
services a system of about 6,000 Dairy Queen stores; See’ s Candies, a manufacturer and distributor of boxed chocolates and other
confectionery products; Larson-Juhl, which designs, manufactures, and distributes custom picture framing products; CTB
International, a manufacturer of equipment and systems for the poultry, hog, egg production and grain industries; The Pampered
Chef, a direct seller of kitchen tools and Forest River, a leading manufacturer of leisure vehicles.