
(3)	Acquisitions

NV Energy, Inc.

On May 29, 2013, MEHC entered into an Agreement and Plan of Merger (the "Merger Agreement") whereby MEHC will acquire NV Energy, Inc. ("NV Energy") and NV Energy will become an indirect wholly owned subsidiary of MEHC. NV Energy is a holding company whose principal subsidiaries are Nevada Power Company ("Nevada Power") and Sierra Pacific Power Company ("Sierra") (together, the "Nevada Utilities"). The Nevada Utilities are public utilities that generate, transmit and distribute electric energy in Nevada and, in the case of Sierra, also provide natural gas service. As of December 31, 2012, NV Energy served 1.2 million electric customers and 0.2 million natural gas customers in its nearly 46,000-square-mile service territory. As of December 31, 2012, NV Energy reported $12 billion of assets and almost 6,000 megawatts ("MW") of owned generating capacity. The Merger Agreement entitles NV Energy's common shareholders to receive $23.75 in cash for each share of NV Energy common stock issued and outstanding immediately prior to the close of the acquisition. The purchase price is estimated at $5.6 billion, subject to final determination of the outstanding shares at closing. MEHC's shareholders have committed to provide sufficient capital to fund the entire purchase price of NV Energy. MEHC expects to fund the acquisition by issuing $1.0 billion of common equity to its existing shareholders, issuing $2.6 billion of junior subordinated debentures to Berkshire Hathaway and its subsidiaries, and incurring $2.0 billion of MEHC senior debt.

The acquisition has been approved by the boards of directors of both NV Energy and MEHC and the shareholders of NV Energy, but remains subject to customary closing conditions, including receipt of approvals from state and federal regulatory authorities. MEHC and NV Energy filed a joint application with the Public Utilities Commission of Nevada ("PUCN") on July 17, 2013. The PUCN has scheduled hearings relative to the joint application beginning on November 18, 2013. The PUCN has 180 days from the application filing date to issue a final order on the joint application. MEHC and NV Energy filed an application with the Federal Energy Regulatory Commission ("FERC") on July 12, 2013. On September 27, 2013, the Federal Communications Commission license transfer was approved, and on July 22, 2013, the United States Department of Justice and the Federal Trade Commission granted early termination of the mandatory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The PUCN and FERC approvals are expected to be received by early 2014 and MEHC expects the acquisition to close shortly after receiving the approvals.

The Merger Agreement provides for certain termination rights for both NV Energy and MEHC. Upon termination of the Merger Agreement under certain circumstances, NV Energy may be obligated to pay MEHC a termination fee of $170 million.

HomeServices

The Company completed various acquisitions of residential real estate brokerage businesses totaling $206 million through September 2013. The purchase prices were allocated to the assets acquired and liabilities assumed in each acquisition. The assets acquired consisted of loans receivable and other working capital items, goodwill and other identifiable intangible assets. The liabilities assumed included mortgage lines of credit secured by the loans receivable acquired and other working capital items.