Significant business acquisitions

3 Months Ended

Mar. 31, 2014

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.

On December 19, 2013, Berkshire Hathaway Energy acquired NV Energy, Inc. (“NV Energy”) for cash consideration of approximately $5.6 billion. NV Energy is an energy holding company serving approximately 1.2 million retail electric and 0.2 million retail natural gas customers in Nevada. NV Energy’s principal operating subsidiaries, Nevada Power Company and Sierra Pacific Power Company, are regulated utilities. We accounted for the acquisition pursuant to the acquisition method. NV Energy’s financial results are included in our Consolidated Financial Statements beginning on the acquisition date.

The preliminary values of NV Energy’s identified assets acquired and liabilities assumed and residual goodwill at the date of acquisition are summarized as follows (in millions).

	December 19, 2013
Property, plant and equipment		$	9,550
Goodwill			2,362
Other assets, including cash of $304 million			2,481
Assets acquired		$	14,393
Accounts payable, accruals and other liabilities		$	3,455
Notes payable and other borrowings			5,342
Liabilities assumed		$	8,797
Net assets acquired		$	5,596

On January 1, 2014, we acquired the beverage dispensing and merchandising operations of British engineering company, IMI plc for approximately $1.13 billion. This business was acquired through Marmon. On February 25, 2014, we acquired 100% of the outstanding common stock of Phillips Specialty Products Inc. (“PSPI”) in exchange for 17,422,615 shares of Phillips 66 (“PSX”) common stock with an aggregate fair value of $1.35 billion. PSPI, which has been renamed as Lubrizol Specialty Products Inc. (“LSPI”), provides flow improver products to customers worldwide. At their respective acquisition dates, the aggregate preliminary fair values of the identified assets and liabilities of IMI plc and LSPI were approximately $1.87 billion and $450 million, respectively, and the residual goodwill was approximately $1.06 billion.

The following table sets forth certain unaudited pro forma consolidated earnings data for the first three months of 2013 (in millions, except per share amounts).

Revenues	$	44,685
Net earnings attributable to Berkshire Hathaway shareholders		4,924
Net earnings per equivalent Class A common share attributable to Berkshire Hathaway shareholders		2,997