Significant business acquisitions

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

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. Financial results attributable to business acquisitions are included in our Consolidated Financial Statements beginning on their respective acquisition dates.

In the first quarter of 2015, Berkshire acquired controlling interests in the Van Tuyl Group. The Van Tuyl Group (now named Berkshire Hathaway Automotive) included 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. The goodwill related to the AltaLink acquisition is not amortizable for income tax purposes, while substantially all of the goodwill related to Berkshire Hathaway Automotive is expected to be amortizable for income tax purposes.

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		$    1,274		$         15
Inventories		1,209		—
Property, plant and equipment		1,034		5,610
Goodwill		1,719		1,731
Other assets		1,401		287
Assets acquired		$    6,637		$    7,643
Accounts payable, accruals and other liabilities		$    1,396		$    1,064
Notes payable and other borrowings		1,129		3,851
Liabilities assumed		$    2,525		$    4,915
Net assets		$    4,112		$    2,728

The following table sets forth certain unaudited pro forma consolidated earnings data for the first nine months of 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 the per share amount). Pro forma data for the first nine months of 2015 was not materially different from the amounts reflected in the Consolidated Statement of Earnings.

	First nine months  2014
Revenues		$	153,079
Net earnings attributable to Berkshire Hathaway shareholders			15,838
Net earnings per equivalent Class A common share attributable to Berkshire Hathaway shareholders			9,636