Per Share Data Reconcilliation

[rishig]

Fairfax experts, can you help me reconcile something in the data. I have put together what net investments per share has been, as well as net debt, float and book value per share. I see that net investments / share = net debt / share + float / share + book value / share + something / share. The last part "something / share" grows to be significant as I go back to earlier years. What is this other stuff? All the other numbers are as quoted from annual reports.

 

Year Investments / Share Net Debt / Share Float / Share Book value / Share

2001 710 83 389 117

2002 752 114 424 125

2003 905 142 478 164

2004 841 123 464 163

2005 835 111 492 138

2006 950 91 594 150

2007 1073 68 596 230

2008 1140 24 620 278

2009 1064 54 577 370

2010 1137 61 639 376

2011 1193 101 706 364

2012 1292 95 786 379

2013 1173 83 734 339

2014 1236 93 711 394

2015 1307 93 769 403

2016 1231 149 722 367

[StubbleJumper]

Minority interest?  Specifically in ORH and NB?  The investments were probably consolidated, but the minority interest would be removed from book?

[rishig]

Minority interest?  Specifically in ORH and NB?  The investments were probably consolidated, but the minority interest would be removed from book?

 

For the moment, let's ignore per share data. Here is what I get (all of these are reported numbers). The differences are too large to be minority interest:

 

Year Investments Net Debt Float Common Equity Investments - Net Debt - Float - Equity

2001 10,222.8 1,194.1 5,607.0 1,679.5 1,742.2

2002 10,596.5 1,602.8 5,975.5 1,760.4 1,257.8

2003 12,491.2 1,961.1 6,598.1 2,264.6 1,667.4

2004 13,460.6 1,965.9 7,421.0 2,605.7 1,468.0

2005 14,869.4 1,984.0 8,756.6 2,448.2 1,680.6

2006 16,819.7 1,613.6 10,518.8 2,662.4 2,024.9

2007 19,000.7 1,207.4 10,548.0 4,063.5 3,181.8

2008 19,949.8 412.5 10,841.9 4,866.3 3,829.1

2009 21,273.0 1,071.1 11,537.4 7,391.8 1,272.7

2010 23,300.0 1,254.9 13,109.5 7,697.9 1,237.7

2011 24,332.5 2,055.7 14,399.0 7,427.9 449.9

2012 26,094.2 1,920.6 15,879.2 7,654.7 639.7

2013 24,861.6 1,752.9 15,550.5 7,186.7 371.5

2014 26,192.7 1,966.3 15,065.0 8,361.0 800.4

2015 29,016.1 2,075.6 17,072 8,952.5 916.0

2016 28,430.7 3,438.2 16,673.0 8,484.6 (165.1)

[rishig]

Minority interest?  Specifically in ORH and NB?  The investments were probably consolidated, but the minority interest would be removed from book?

 

For the moment, let's ignore per share data. Here is what I get (all of these are reported numbers). The differences are too large to be minority interest:

 

Year Investments Net Debt Float Common Equity Investments - Net Debt - Float - Equity

2001 10,222.8 1,194.1 5,607.0 1,679.5 1,742.2

2002 10,596.5 1,602.8 5,975.5 1,760.4 1,257.8

2003 12,491.2 1,961.1 6,598.1 2,264.6 1,667.4

2004 13,460.6 1,965.9 7,421.0 2,605.7 1,468.0

2005 14,869.4 1,984.0 8,756.6 2,448.2 1,680.6

2006 16,819.7 1,613.6 10,518.8 2,662.4 2,024.9

2007 19,000.7 1,207.4 10,548.0 4,063.5 3,181.8

2008 19,949.8 412.5 10,841.9 4,866.3 3,829.1

2009 21,273.0 1,071.1 11,537.4 7,391.8 1,272.7

2010 23,300.0 1,254.9 13,109.5 7,697.9 1,237.7

2011 24,332.5 2,055.7 14,399.0 7,427.9 449.9

2012 26,094.2 1,920.6 15,879.2 7,654.7 639.7

2013 24,861.6 1,752.9 15,550.5 7,186.7 371.5

2014 26,192.7 1,966.3 15,065.0 8,361.0 800.4

2015 29,016.1 2,075.6 17,072 8,952.5 916.0

2016 28,430.7 3,438.2 16,673.0 8,484.6 (165.1)

 

For instance, the numbers in 2008 are very off. I am sure I am wrong somewhere.

[StubbleJumper]

Well, if the investments, debt and float are all consolidated to the FFH holdco level, but the equity is reduced by the minority interest there should be a large-ish gap.  Remember, back in the day it was ~20% of both NB and ORH that were held by us minorities (to say nothing of Lindsay Morden).  I wonder if it would come closer to balancing if you were to hair-cut the investments, debt, and float for ORH and NB?  Also, is it possible that some of the cash/ST investments are double counted as perhaps they could appear in BOTH the net debt number and possibly the investments number?

 

Interestingly enough, after the repurchases of NB in late 2008 and ORH in 2009(?) your calculated gap narrows rapidly. 

 

Sorry for the fuzziness, but it's been a long time since 4th year accounting where consolidations were a nightmare.

 

 

 

SJ