Significant business acquisitions

3 Months Ended

Mar. 31, 2015

Significant business acquisitions

Note 3. Significant business acquisitions

Our long-held acquisition strategy is to acquire businesses at sensible prices that have consistent earning power, good returns on equity and able and honest management.

In the first quarter of 2015, Berkshire acquired controlling interests of the Van Tuyl Group. The Van Tuyl Group (now named Berkshire Hathaway Automotive) includes 81 automotive dealerships located in 10 states as well as two related insurance businesses, two auto auctions and a manufacturer of automotive fluid maintenance products. In addition to selling new and pre-owned automobiles, the Berkshire Hathaway Automotive group offers repair and other services and products, including extended warranty services and other automotive protection plans. Consideration paid for the acquisition was $4.1 billion. On December 1, 2014, Berkshire Hathaway Energy Company acquired AltaLink, L.P. (“AltaLink”) for a cash purchase price of C$3.1 billion (approximately $2.7 billion). AltaLink is a regulated electric transmission-only business, headquartered in Calgary, Alberta. Financial results attributable to these acquisitions are included in our Consolidated Financial Statements beginning on their respective acquisition dates.

Preliminary fair values of identified assets acquired and liabilities assumed and residual goodwill at their respective acquisition dates are summarized as follows (in millions).

	Berkshire Hathaway Automotive			AltaLink
Cash and investments		$	1,275		$	15
Inventories			1,209			—
Property, plant and equipment			1,034			5,610
Goodwill			2,260			1,731
Other assets			1,033			287
Assets acquired		$	6,811		$	7,643
Accounts payable, accruals and other liabilities		$	1,075		$	1,064
Notes payable and other borrowings			1,129			3,851
Noncontrolling interests			495			—
Liabilities assumed and noncontrolling interests		$	2,699		$	4,915
Net assets		$	4,112		$	2,728

The following table sets forth certain unaudited pro forma consolidated earnings data for the first three months of 2015 and 2014 as if the acquisitions discussed previously were consummated on the same terms at the beginning of the year preceding their respective acquisition dates (in millions, except per share amounts).

	2015		2014
Revenues	$	49,744	$	47,640
Net earnings attributable to Berkshire Hathaway shareholders		5,192		4,772
Net earnings per equivalent Class A common share attributable to Berkshire Hathaway shareholders		3,160		2,903