BERKSHIRE HATHAWAY INC [BRK-B] Filings

10-Q 1 brka-20230630.htm 10-Q 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-14905

BERKSHIRE HATHAWAY INC.

(Exact name of registrant as specified in its charter)


Delaware	47-0813844
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

3555 Farnam Street, Omaha, Nebraska 68131

(Address of principal executive office) (Zip Code)

(402) 346-1400

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
 

Trading Symbols
 

Name of each exchange on which registered
 

Class A Common Stock
Class B Common Stock
300% Senior Notes due 2024
000% Senior Notes due 2025
125% Senior Notes due 2027
150% Senior Notes due 2028
500% Senior Notes due 2030
000% Senior Notes due 2034
625% Senior Notes due 2035
375% Senior Notes due 2039
500% Senior Notes due 2041
625% Senior Notes due 2059

BRK.A
BRK.B
BRK24
BRK25
BRK27
BRK28
BRK30
BRK34
BRK35
BRK39
BRK41
BRK59

New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Number of shares of common stock outstanding as of July 26, 2023:


Class A —	575,320
Class B —	1,308,070,268

BERKSHIRE HATHAWAY INC.


		Page No.

Part I – Financial Information

Item 1. Financial Statements
	Consolidated Balance Sheets—June 30, 2023 and December 31, 2022	2
	Consolidated Statements of Earnings—Second Quarter and First Six Months 2023 and 2022	4
	Consolidated Statements of Comprehensive Income—Second Quarter and First Six Months 2023 and 2022	5
	Consolidated Statements of Changes in Shareholders’ Equity—Second Quarter and First Six Months 2023 and 2022	6
	Consolidated Statements of Cash Flows—First Six Months 2023 and 2022	7
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	52
Item 4.	Controls and Procedures	52

Part II – Other Information		52

Item 1.	Legal Proceedings	52
Item 1A.	Risk Factors	52
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities	53
Item 3.	Defaults Upon Senior Securities	53
Item 4.	Mine Safety Disclosures	53
Item 5.	Other Information	53
Item 6.	Exhibits	54

Signature		54

Part I Financial Information

Item 1. Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(dollars in millions)


	June 30, 2023		December 31, 2022
	(Unaudited)
ASSETS
Insurance and Other:
Cash and cash equivalents*	$	44,611	$	32,260
Short-term investments in U.S. Treasury Bills		97,322		92,774
Investments in fixed maturity securities		22,353		25,128
Investments in equity securities		353,409		308,793
Equity method investments		27,493		28,050
Loans and finance receivables		23,530		23,208
Other receivables		45,590		43,490
Inventories		25,295		25,366
Property, plant and equipment		21,413		21,113
Equipment held for lease		16,028		15,584
Goodwill		50,982		51,522
Other intangible assets		29,819		29,187
Deferred charges - retroactive reinsurance		9,454		9,870
Other		19,917		19,657
		787,216		726,002
Railroad, Utilities and Energy:
Cash and cash equivalents*		5,444		3,551
Receivables		6,067		4,795
Property, plant and equipment		171,747		160,268
Goodwill		34,871		26,597
Regulatory assets		5,452		5,062
Other		30,776		22,190
		254,357		222,463
	$	1,041,573	$	948,465

——————

* Includes U.S. Treasury Bills with maturities of three months or less when purchased of $24.5 billion at June 30, 2023 and $2.6 billion at December 31, 2022.

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(dollars in millions)


	June 30, 2023			December 31, 2022
	(Unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Insurance and Other:
Unpaid losses and loss adjustment expenses	$	109,030		$	107,472
Unpaid losses and loss adjustment expenses - retroactive reinsurance contracts		34,421			35,415
Unearned premiums		31,173			28,657
Life, annuity and health insurance benefits		19,635			19,753
Other policyholder liabilities		10,868			11,370
Accounts payable, accruals and other liabilities		31,999			33,201
Aircraft repurchase liabilities and unearned lease revenues		7,375			6,820
Notes payable and other borrowings		41,389			46,538
		285,890			289,226
Railroad, Utilities and Energy:
Accounts payable, accruals and other liabilities		20,234			16,615
Regulatory liabilities		6,719			7,369
Notes payable and other borrowings		83,958			76,206
		110,911			100,190
Income taxes, principally deferred		93,011			77,368
Total liabilities		489,812			466,784
Redeemable noncontrolling interests		3,210			—
Shareholders’ equity:
Common stock		8			8
Capital in excess of par value		35,140			35,167
Accumulated other comprehensive income		(4,240	)		(5,052	)
Retained earnings		582,543			511,127
Treasury stock, at cost		(73,568	)		(67,826	)
Berkshire Hathaway shareholders’ equity		539,883			473,424
Noncontrolling interests		8,668			8,257
Total shareholders’ equity		548,551			481,681
	$	1,041,573		$	948,465

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS

(dollars in millions except per share amounts)

(Unaudited)


	Second Quarter					First Six Months
	2023		2022			2023		2022
Revenues:
Insurance and Other:
Insurance premiums earned	$	20,561	$	18,081		$	40,357	$	35,569
Sales and service revenues		39,126		40,220			77,514		78,082
Leasing revenues		2,079		1,887			4,123		3,559
Interest, dividend and other investment income		3,846		2,861			7,075		4,723
		65,612		63,049			129,069		121,933
Railroad, Utilities and Energy:
Freight rail transportation revenues		5,808		6,612			11,809		12,556
Utility and energy operating revenues		19,593		4,935			34,510		9,753
Service revenues and other income		1,490		1,605			2,508		2,802
		26,891		13,152			48,827		25,111
Total revenues		92,503		76,201			177,896		147,044

Investment and derivative contract gains (losses)		33,061		(66,919	)		67,819		(68,897	)

Costs and expenses:
Insurance and Other:
Insurance losses and loss adjustment expenses		14,089		13,620			28,310		26,952
Life, annuity and health insurance benefits		1,128		1,186			1,913		2,523
Insurance underwriting expenses		3,729		2,377			7,316		4,981
Cost of sales and services		30,621		31,633			60,940		61,418
Cost of leasing		1,457		1,498			2,934		2,730
Selling, general and administrative expenses		5,005		3,762			10,607		8,013
Interest expense		314		302			642		566
		56,343		54,378			112,662		107,183
Railroad, Utilities and Energy:
Freight rail transportation expenses		4,014		4,260			8,175		8,185
Utilities and energy cost of sales and other expenses		18,159		3,844			32,005		7,435
Other expenses		1,189		1,527			2,060		2,683
Interest expense		935		785			1,825		1,555
		24,297		10,416			44,065		19,858
Total costs and expenses		80,640		64,794			156,727		127,041
Earnings (loss) before income taxes and equity method earnings		44,924		(55,512	)		88,988		(48,894	)
Equity method earnings		511		204			1,199		543
Earnings (loss) before income taxes		45,435		(55,308	)		90,187		(48,351	)
Income tax expense (benefit)		9,236		(12,066	)		18,231		(10,814	)
Net earnings (loss)		36,199		(43,242	)		71,956		(37,537	)
Earnings attributable to noncontrolling interests		287		379			540		504
Net earnings (loss) attributable to Berkshire Hathaway shareholders	$	35,912	$	(43,621	)	$	71,416	$	(38,041	)
Net earnings (loss) per average equivalent Class A share	$	24,775	$	(29,663	)	$	49,152	$	(25,832	)
Net earnings (loss) per average equivalent Class B share*	$	16.52	$	(19.78	)	$	32.77	$

BERKSHIRE HATHAWAY INC [BRK-B] Filings
BERKSHIRE HATHAWAY INC [BRK-A] Filings
10-Q	[2023-08-07]
10-Q	[2023-05-08]
10-K	[2023-02-27]
10-Q	[2022-11-07]
10-Q	[2022-08-08]
10-Q	[2022-05-02]
10-K	[2022-02-28]
10-Q	[2021-11-08]
10-Q	[2021-08-09]
10-Q	[2021-05-03]
10-K	[2021-03-01]
10-Q	[2020-11-09]
10-Q	[2020-08-10]
10-Q	[2020-05-04]
10-K	[2020-02-24]
10-Q	[2019-11-04]
10-Q	[2019-08-05]
10-Q	[2019-05-06]
10-K	[2019-02-25]
10-Q	[2018-11-05]
10-Q	[2018-08-06]
10-Q	[2018-05-07]
10-K	[2018-02-26]
10-Q	[2017-11-03]
10-Q	[2017-08-04]
10-Q	[2017-05-05]
10-K	[2017-02-27]
10-Q	[2016-11-04]
10-Q	[2016-08-05]
10-Q	[2016-05-06]
10-K	[2016-02-29]
10-Q	[2015-11-06]
10-Q	[2015-08-07]
10-Q	[2015-05-01]
10-K	[2015-03-02]
10-Q	[2014-11-07]
10-Q	[2014-08-01]
10-Q	[2014-05-02]
10-K	[2014-03-03]
10-Q	[2013-11-01]
10-Q	[2013-08-02]
10-Q	[2013-05-03]
10-K	[2013-03-01]
10-Q	[2012-11-02]
10-Q	[2012-08-03]
10-Q	[2012-05-04]
10-K	[2012-02-27]

BERKSHIRE HATHAWAY INC [BRK-B] Filings

BERKSHIRE HATHAWAY INC [BRK-A] Filings