1961 年伯克希尔完整年报

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CLEVELAND PUBLIC LIBRART CORPORATION FILE BUSINESS INF. BUR, BERKSHIRE HATHAWAY INC. Annual Report TO THE STOCKHOLDERS 1961

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BERKSHIRE HATHAWAY INC. The Company had 9,028 stockholders on September 30, 1961 DIRECTORS MALCOLM G. CHACE, JR., Chairman ABRAM BERKOWITZ ARTHUR INGRAHAM, JR. JONATHAN CHACE EDMUND RIGBY LINSLEY V. DODGE OTIS C. STANTON BRADFORD R. FROST SEABURY STANTON A. N. WINSLOW, JR. EXECUTIVE COMMITTEE SEABURY STANTON, Chairman MALCOLM G. CHACE, JR. BRADFORD R. FROST A. N. WINSLOW, JR. OFFICERS SEABURY STANTON, President EDMUND RIGBY, Executive Vice President and Clerk WILLIAM H. POTTER, Vice President LINSLEY V. DoDGE, Vice President LYMAN H. SMITH, Vice President and Treasurer JoHN E. HARTLEY, Vice President JOHN K. STANTON, Vice President STANLEY RUBIN, Vice President 1

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BERKSHIRE HATHAWAY INC. FINANCIAL HIGHLIGHTS For Fiscal Years 1961 and 1960 September 30, 1961 October 1, 1960 Sales $47,722,281 $62,608,679 Earnings (loss) and special item (393,054) 4,623,980 Earnings (loss) per share (.24) 2.84 Depreciation 2,128,699 1,713,004 Purchases of properties and equipment 4,020,542 3,818,632 Cash $ 939,471 $ 1,535,261 U. S. Government securities -0- 3,248,184 Notes payable - banks. 4,150,000 Accounts receivable (net) 6,852,447 7,644,809 Inventories 20,880,052 14,919,764 Working capital 19,814,122 23,430,319 Working capital per share 12.35 14.41 Stockholders' equity. 36,175,695 37,981,820 Stockholders' equity per share 22.51 23.37 Payroll $20,324,190 $21,063,195 2

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BERKSHIRE HATHAWAY INC. ANNUALREPORT For the Year Ended September 30, 1961 November 15, 1961 TO THE STOCKHOLDERS OF BERKSHIRE HATHAWAY INC.: began to show evidences of recovery six or eight months ago, the textile industry still continued its Although the general economic recession which affected the business climate during 1960 apparently downward trend. tially, particularly during the last six months, reflecting the gradual reduction in demand which continued The volume of sales of the company dropped materially during the year and prices declined substan- throughout the entire period. after depreciation of $2,128,699. This compares with a profit of $4,623,980, after depreciation of As a result, our operations for the fiscal year ended September 30, 1961 showed a loss of $393,054, $1,713,004, for the fiscal year ended October 1, 1960. may be found elsewhere in this report. Further information with regard to sales, earnings, dividends, finances, operations, and other matters In addition to the reduction in business caused by the general recession, the textile markets were seriously affected by the tremendous importation of foreign textile products which continued throughout the year. For the calendar year ended December 31, 1960, this reached the staggering total of over one and one third billion yards of fabrics, apparel, and other textile products. reached in Geneva by representatives of the major exporting and importing textile countries in the free As previously reported, during the latter part of July a short term International agreement was world. This agreement provides for import and export controls among the signatory countries and will be supplemented by a long term agreement which it is hoped will result in limitation of imports of low price textile products and a gradual improvement in the demand and price level for the production of our own American mills. The Treasury Department has recently released a new depreciation schedule for textile machinery which will allow higher rates of depreciation in the future and will be helpful in financing our continuing modernization and development program. important cost saving machinery in the development stages and it will be the policy of this company Textile machinery manufacturers, not only in the United States, but throughout the world, have of machinery improvements and modernization which will culminate October 1, 1962, has placed this to continue to take advantage of these improvements as they are available. The three year program company in an excellent position to take advantage of any improvement in the market which may occur. We are confident that we will continue to receive the cooperation of our employees in maintaining our competitive position with the rest of the industry, and we look forward to the future with confidence. Committee member since 1952, passed away on August 30, 1961. His advice and wise counsel will be We regret to report that Mr. W. R. L. McBee, who has been a Director since 1929 and Executive greatly missed. MALCOLM G. CHACE, JR. SEABURY STANTON Chairman of the Board President 3

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BERKSHIRE REVIEW OF EARNINGS AND SALES Loss for the fiscal year ended September 30, 1961 was $393,054, after depreciation of $2,128,699. This compares with earnings of $4,623,980, after depreciation of $1,713,004, for the year ended October 1, 1960. Sales volume for the year ended September 30, 1961 was $47,722,281 compared to $62,608,679 for the year ended October 1, 1960. DIVIDENDS A total of $1,205,535 was paid in dividends during the fiscal year just ended, as follows: December 1, 1960 25¢ per share March 1, 1961 25¢ per share June 1, 1961 15é per share September 1, 1961 10é per share The Directors, at the meeting held on November 7, 1961, declared a dividend of 10¢ per share payable on December 1, 1961, to stockholders of record on November 17, 1961. FINANCIAL DEVELOPMENTS The financial position of the Company continues strong. Net working capital on September 30, 1961 was $19,844,122, or $12.35 per share, compared with $23,430,319, or $14.41 per share, on October 1, 1960. Net worth was $36,175,695, or $22.51 per share, on September 30, 1961, compared with $37,981,820, or $23.37 per share, on October 1, 1960. During the year ended September 30, 1961, the Company purchased 18,139 shares of Berkshire Hathaway Inc. stock at a total cost of $207,536. These shares, together with shares purchased in prior years, make a total of 687,184 shares of treasury stock held by the Company. The outstanding shares as of September 30, 1961 were 1,607,380 shares, which compares with a total of 1,625,519 outstanding on October 1, 1960. 4.

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HATHAWAY INC. OpERATIONS PLANTS AND EQUIPMENT During the fiscal year ended September 30, 1961, expenditures capitalized in connection with machinery and plant facilities amounted to $4,020,542. The Company expects to spend approximately $2,500,000 on improvements to machinery and equipment during the coming fiscal year, and will continue to keep abreast of technological developments. EMPLOYEE RELATIONS We have continued to receive the cooperation of our workers during the current year, and look forward to the same mutually satisfactory relationship in the future. OPERATIONS The Company now has approximately 5,800 workers and operates a total of seven plants, of which four are located in Rhode Island and three in Massachusetts. The total payroll for the fiscal year ended September 30, 1961 was approximately $20,000,000, and all seven plants have operated on a three-shift basis throughout the year. MERCHANDISING TRENDS In keeping with the policy established in the early part of 1959, our entire production is now sold in the grey or unfinished state, with the exception of curtain fabrics and cotton handkerchief fabrics. During the year the Company increased production of fabrics made with blends of cotton and synthetic fibers, and it is planning to further increase its production on this type of goods in the coming year.

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BERKSHIRE CONSOLIDATED

• ASSETS -

September October 30, 1961 1, 1960 CURRENT ASSETS: Cash $ 939,471 $ 1,535,261 U.S. Government securities -0- 3,248,184 Accounts receivable (less allowance for doubtful accounts — 1961 - $317,774) 6,852,447 7,644,809 Inventories (Note A) 20,880,052 14,919,764 Prepaid insurance, taxes and other expense 275,423 494,767 TOTAL CURRENT ASSETS 28,947,393 27,842,785 PROPERTIES, PLANTS AND EQUIPMENT (Note B): Properties comprising land, buildings, machinery and equipment. 40,429,269 36,653,038 Less accumulated depreciation and amortization 24,197,474 22,263,561 16,231,795 14,389,477 MORTGAGE NOTES RECEIVABLE AND OTHER ASSETS 99,770 162,024 TOTAL ASSETS $45,278,966 $42,394,286 See accompanying notes

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HATHAWAY INC. BALANCE SHEET -LIABILITIES AND STOCKHOLDERS' EQUITY - September October 30, 1961 1, 1960 CURRENT LIABILITIES: Notes payable — banks $ 4,150,000 $ -0— Accounts payable. 3,371,352 2,582,672 Accrued wages and salaries 528,629 590,169 Accrued state and local taxes 488,415 623,665 Social security and withholding taxes payable. 564,875 615,960 TOTAL CURRENT LIABILITIES. 9,103,271 4,412,466 STOCKHOLDERS' EQUITY: Common stock ($5 par value) authorized 3,000,000 shares — issued 2,294,564 shares 11,472,820 11,472,820 Excess of net assets received over common stock issued or cost of subsidiary acquisition (capital surplus) 2,738,106 2,738,106 Earnings retained in the business (earned surplus) 29,730,704 31,329,293 Less common stock in treasury at cost 43,941,630 45,540,219 (1961 - 687,184 shares; 1960 — 669,045 shares) 7,765,935 7,558,399 36,175,695 37,981,820 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $45,278,966 $42,394,286 to financial statements. 7

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BERKSHIRE HATHAWAY INC. Consolidated Statement of Income Years Ended September October 30, 1961 1, 1960 SALES $47,722,281 $62,608,679 Cost of goods sold, administrative and selling expenses 46,144,614 56,273,523 Depreciation 2,128,699 1,713,004 48,273,313 57,986,527 OPERATING PROFIT OR (LOSS) (551,032) 4,622,152 Other income 182,720 425,639 (560,312) 5,047,791 Other charges 96,664 423,811 NET INCOME OR (LOSS) BEFORE THE FOLLOWING (464,976) 4,623,980 Special Item Refund of Federal income taxes — prior years 71,922 NET INCOME OR (LOSS) AND SPECIAL ITEM $ (393,054) $ 4,623,980 Consolidated Statement of Earnings Retained in the Business EARNINGS RETAINED IN THE BUSINESS AT BEGINNING OF YEAR $31,329,293 $28,420,636 Net income or (loss) and special item for the year (393,054) 4,623,980 Dividends paid (1,205,535) (1,715,323) EARNINGS RETAINED IN THE BUSINESS AT END OF YEAR $29,730,704 $31,329,293 See accompanying notes to financial statements. 8

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BERKSHIRE HATHAWAY INC. Notes to Consolidated Financial Statements For the Year Ended September 30, 1961 Basis of Consolidation The consolidated financial statements include the accounts of two subsidiary companies, one of which is a Canadian subsidiary. Corporate Changes Parent Company. During the fiscal year Bourne Mills of California, Inc., one of the above-mentioned subsidiaries, was liquidated into the Note A - Inventories stock in process of Berkshire Divisions which is priced at a standard established in 1933, which is substantially less than the Raw materials, including materials in process, are priced at the lower of cost or market, except for the cotton content of current market. Current standard costs are used in valuing labor and manufacturing burden in stock in process. Cloth is priced at the lower of cost or market. All costs were determined generally on an average basis. The inventory of the subsidiary is priced at the lower of cost or market on a first-in, first-out basis. Note B — Properties, Plants and Equipment and $14,389,477, respectively. The properties, plants and equipment at September 30, 1961 and October 1, 1960 are stated at net book values of $16,231,795 respectively. Consistent with the practice of prior years, depreciation has been charged to operations on the book basis. The net values used for federal income tax purposes were $17,857,905 and $16,112,462, tax purposes for additions of the years 1960 and 1961. In accordance with the Treasury Department's policy of liberalizing The declining balance method of providing for depreciation of machinery and equipment is used for both book and income assets acquired prior to fiscal year 1961 was adjusted to conform thereto. The revision in depreciation rates on assets acquired depreciation rates on textile machinery, 1961 additions were placed on lives not exceeding fifteen years, and depreciation on prior to fiscal year 1961 did not result in a material change in earnings. Note C - Taxes on Income refund of $71,922 resulting from the examination is shown in the "Special item" section of the income statement. Federal income tax returns of the Company have been examined through the fiscal year ended September 30, 1957. A net The Company has an operating loss carry-forward of approximately $1,900,000 available for future years. Note D- Pension Plans and Retirement Separation Benefits The Company made contributions to the trustees for the pension plans based upon payment of normal costs plus amortizing former executives and employees. the deficiency for past services. In addition, the Company is also liable under consultation and retirement contracts with The Company is contingently liable for retirement separation pay of certain employees who have reached the retirement age with a minimum service of fifteen years and who retire voluntarily. Under the terms of the union contract such liability under the contract was $105,000. does not become fixed until the actual retirement of eligible employees. As of September 30, 1961 the estimated liability Note E - Purchase Commitments Plant improvement commitments were approximately $1,173,000. At the close of the fiscal year the Company had outstanding raw material commitments at prices not in excess of market.

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BERKSHIRE HATHAWAY INC. A C C UNTANTS' REPORT COMERY, DAVISON & JACOBSON Certified Public Accountants 10 DORRANCE STREET PROVIDENCE, RHODE ISLAND American Institute of Members Certified Public Accountants To the Stockholders and Board of Directors Berkshire Hathaway Inc. New Bedford, Massachusetts We have examined the consolidated balance sheet of Berkshire Hathaway Inc. and its subsidiary as of September 30, 1961 and the related statements of income and earnings retained in the business for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly in- cluded such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. and statements of income and earnings retained in the business In our opinion, the accompanying consolidated balance sheet present fairly the consolidated financial position of Berkshire Hathaway Inc. at September 30, 1961, and the consolidated results of its operations for the year then ended, in conformity with gen- erally accepted accounting principles applied on a basis consistent with that of the preceding year. Anaco Dancin festan October 30, 1961 10

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BERKSHIRE HATHAWAY INc. COMPAR TIVE FINANCIAL DATA FISCAL YEARS - 1961 1960 1959 1958 1957 Sales . $47,722,281 $62,608,679 $69,511,792 $61,956,405 $66,098,223 Net earnings (loss) (393,054) 4,623,980 1,322,099 (4,975,460) (3,258,035) Earnings (loss) per share of common stock (.24) 2.84 .68 (2.36) (1.55) Cash dividends paid 1,205,535 1,715,323 464,287 None 1,107,864 Cash dividends paid per share .75 .95 .22½ None .50 Purchases of properties, plant and equipment 4,020,542 3,818,632 1,125,253 1,279,848 1,622,760 Working capital 19,844,122 23,430,319 25,858,987 24,647,555 27,429,021 Working capital per share 12.35 14.41 13.35 11.70 13.02 Stockholders' equity 36,175,695 37,981,820 38,911,549 39,927,846 44,903,306 Stockholders' equity per share 22.51 23.37 20.10 18.96 21.32 Common shares outstanding . . 1,607,380 1,625,519 1,936,321 2,105,969 2,105,969 NOTE: "Common shares outstanding" represents the total shares outstanding at the close of each fiscal year. 11

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BERKSHIRE HATHAWAY INC. EXECUTIVE OFFICES 97 Cove Street, New Bedford, Mass. SALES OFFICES 1430 Broadway, New York, N. Y. 3028 East I1th Street, Los Angeles, Calif. 363 Adelaide St., West, Toronto, Canada PLANT LOCATIONS Hathaway Div., New Bedford, Mass. King Philip Div. D, Warren, R. I. King Philip Div. A, Fall River, Mass. Valley Falls Div., Albion, R. I. King Philip Div. E, Fall River, Mass. Coventry Div., Anthony, R. I. Warehouse, Fall River, Mass. Bourne Mills Div., Tiverton, R. I. LABORATORY New Bedford, Mass. TRANSFER AGENT REGISTRAR OLD COLONY TRUST COMPANY THE FIRST NATIONAL BANK OF BOSTON 45 Milk Street 45 Milk Street Boston, Mass. Boston, Mass. AUDITORS COUNSEL COMERY, DAVISON & JACOBSON ROPES & GRAY Providence, R. I. Boston, Mass. 12

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BERKSHIRE HATHAWAY INC.