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Management’s Discussion (Continued)<br />
Utilities and Energy (“MidAmerican”) (Continued)<br />
offset by the impact of one-time customer refunds issued by NV Energy and impairment losses associated with MidAmerican’s<br />
interests in certain geothermal electricity generation projects. EBIT in 2013 from other activities declined $87 million compared<br />
to 2012, as the impacts of the aforementioned losses associated with geothermal projects and NV Energy acquisition costs and<br />
customer refunds, more than offset the increase in earnings from the new solar and wind-powered electricity generation<br />
projects.<br />
Corporate interest includes interest on the unsecured debt issued by MidAmerican Energy Holding Company. Corporate<br />
interest expense in 2014 is expected to increase compared to recent years as a result of new borrowings in connection with the<br />
NV Energy acquisition, including borrowings from certain Berkshire insurance subsidiaries.<br />
MidAmerican’s consolidated income tax expense as percentages of pre-tax earnings were 7% in 2013, 9% in 2012 and<br />
18% in 2011. In each year, MidAmerican’s utility subsidiaries generated significant production tax credits. In addition, pre-tax<br />
earnings of Northern Powergrid are taxed at lower rates in the U.K. and each year also benefitted from reductions of deferred<br />
income taxes as a result of lower enacted corporate income tax rates in the U.K.<br />
Manufacturing, Service and Retailing<br />
A summary of revenues and earnings of our manufacturing, service and retailing businesses follows. Amounts are<br />
in millions.<br />
Revenues<br />
Earnings<br />
2013 2012 2011 2013 2012 2011<br />
Marmon ................................................ $ 6,979 $ 7,171 $ 6,925 $1,176 $1,137 $ 992<br />
McLane Company ........................................ 45,930 37,437 33,279 486 403 370<br />
Other manufacturing ...................................... 29,098 26,757 21,191 3,608 3,319 2,397<br />
Other service ............................................ 8,996 8,175 7,438 1,096 966 977<br />
Retailing ............................................... 4,288 3,715 3,573 376 306 301<br />
$95,291 $83,255 $72,406<br />
Pre-tax earnings .......................................... 6,742 6,131 5,037<br />
Income taxes and noncontrolling interests ..................... 2,512 2,432 1,998<br />
$4,230 $3,699 $3,039<br />
Marmon<br />
Through Marmon, we operate approximately 160 manufacturing and service businesses within eleven diverse business<br />
sectors that are further organized in three separate companies. Those companies and constituent sectors are:<br />
Company<br />
Marmon Engineered Industrial & Metal Components<br />
(“Engineered Components”)<br />
Marmon Natural Resources & Transportation Services<br />
(“Natural Resources”)<br />
Marmon Retail & End User Technologies (“Retail<br />
Technologies”)<br />
Sector<br />
Electrical & Plumbing Products Distribution, Distribution<br />
Services, Industrial Products<br />
Transportation Services & Engineered Products, Engineered<br />
Wire & Cable, Crane Services<br />
Highway Technologies, Water Treatment, Retail Store<br />
Fixtures, Food Service Equipment, Retail Home<br />
Improvement Products<br />
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