Berkshire Hathaway 2015 Annual Report Download - page 35

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 insurance include National Indemnity Company, Columbia
Insurance Company, National Fire & Marine Insurance Company, National Liability and Fire Insurance Company, Berkshire
Hathaway Homestate Insurance Company, Cypress Insurance Company, Berkshire Hathaway Specialty Insurance Company,
Medical Protective Company, the Berkshire Hathaway GUARD Insurance Companies, Applied Underwriters, U.S. Liability
Insurance Company, Central States Indemnity Company, and Berkshire Hathaway Life Insurance Company of Nebraska. Our
finance and financial products businesses primarily engage in proprietary investing strategies (BH Finance), consumer lending
(Clayton Homes, Inc.) and transportation equipment and furniture leasing (UTLX, XTRA and CORT).
Burlington Northern Santa Fe, LLC (“BNSF”) is a holding company that, through its subsidiaries, is engaged primarily in
the freight rail transportation business. BNSF’s rail operations make up one of the largest railroad systems in North America.
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. Among BHE’s operating energy businesses are
Northern Powergrid; MidAmerican Energy Company; PacifiCorp; NV Energy; BHE Pipeline Group; BHE Renewables; and
AltaLink. In addition, BHE owns HomeServices of America, a real estate brokerage firm. McLane Company is a wholesale
distributor of groceries and nonfood items to discount retailers, convenience stores, restaurants and others. The Marmon Group
is an international association of approximately 180 manufacturing businesses, including UTLX, 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. Additionally, on January 29, 2016, Precision Castparts, a worldwide diversified
manufacturer of complex metal components and products serving the aerospace, power and general industrial markets was
acquired.
Numerous business activities are conducted through our other manufacturing, services and retailing subsidiaries. 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 Building Brands is a manufacturer of face brick and concrete masonry products. MiTek produces steel connector products
and engineering software for the building components market. Fruit of the Loom, Russell Athletic, Vanity Fair, Garan,
Fechheimer, H.H. Brown Shoe Group, Justin Brands, and Brooks 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: Buffalo News and the BH Media Group, publishers
of daily and Sunday 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 International, a manufacturer of
equipment for the livestock and agricultural industries; International Dairy Queen, a licensor and service provider to about 6,700
stores that offer prepared dairy treats and food; Pampered Chef, a leading direct seller of kitchen tools in the United States;
Forest River, a leading manufacturer of leisure vehicles in the United States; Business Wire, the 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 and novelties; Charter Brokerage, a
leading global trade services company; Berkshire Hathaway Automotive, which includes 83 automobile dealerships located in
10 states; and Detlev Louis Motorrad, a retailer of motorcycle accessories based in Germany.
Operating decisions for our various businesses are made by managers of the business units. Investment decisions and all
other capital allocation decisions are made for us and our subsidiaries by our senior management team which is led 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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