巴菲特旗下伯克希尔哈撒韦2023年第二季度业绩报告

UNITEDSTATESSECURITIESANDEXCHANGECOMMISSIONWashington,D.C.20549

FORM10-Q

(MarkOne)

☒QUARTERLYREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934

ForthequarterlyperiodendedJune30,2023

OR

☐TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934

Forthetransitionperiodfromto

Commissionfilenumber001-14905

BERKSHIREHATHAWAYINC.

(Exactnameofregistrantasspecifiedinitscharter)

Delaware

(Stateorotherjurisdictionofincorporationororganization)

47-0813844

(I.R.S.EmployerIdentificationNumber)

3555FarnamStreet,Omaha,Nebraska68131

(Addressofprincipalexecutiveoffice)(ZipCode)

(402)346-1400

(Registrant’stelephonenumber,includingareacode)

(Formername,formeraddressandformerfiscalyear,ifchangedsincelastreport)

SecuritiesregisteredpursuanttoSection12(b)oftheAct:

TitleofeachclassTradingSymbolsNameofeachexchangeonwhichregistered

ClassACommonStock

BRK.A

New

York

Stock

Exchange

ClassBCommonStock

BRK.B

New

York

Stock

Exchange

1.300%SeniorNotesdue2024

BRK24

New

York

Stock

Exchange

0.000%SeniorNotesdue2025

BRK25

New

York

Stock

Exchange

1.125%SeniorNotesdue2027

BRK27

New

York

Stock

Exchange

2.150%SeniorNotesdue2028

BRK28

New

York

Stock

Exchange

1.500%SeniorNotesdue2030

BRK30

New

York

Stock

Exchange

2.000%SeniorNotesdue2034

BRK34

New

York

Stock

Exchange

1.625%SeniorNotesdue2035

BRK35

New

York

Stock

Exchange

2.375%SeniorNotesdue2039

BRK39

New

York

Stock

Exchange

0.500%SeniorNotesdue2041

BRK41

New

York

Stock

Exchange

2.625%SeniorNotesdue2059

BRK59

New

York

Stock

Exchange

IndicatebycheckmarkwhethertheRegistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.Yes☒No☐

IndicatebycheckmarkwhethertheRegistranthassubmittedelectronicallyeveryInteractiveDataFilerequiredtobesubmittedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitsuchfiles).Yes☒No☐

IndicatebycheckmarkwhethertheRegistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,smallerreportingcompany,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct.

Largeacceleratedfiler☒Acceleratedfiler☐

Non-acceleratedfiler☐Smallerreportingcompany☐

Emerginggrowthcompany☐Ifanemerginggrowthcompany,indicatebycheckmarkiftheRegistranthaselectednottousetheextendedtransitionperiod

forcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.☐IndicatebycheckmarkwhethertheRegistrantisashellcompany(asdefinedinRule12b-2oftheExchangeAct).

Yes☐No☒

NumberofsharesofcommonstockoutstandingasofJuly26,2023:

ClassA—575,320

ClassB—1,308,070,268

1

BERKSHIREHATHAWAYINC.

PartI–FinancialInformation

Item1.FinancialStatements

ConsolidatedBalanceSheets—June30,2023andDecember31,2022

ConsolidatedStatementsofEarnings—SecondQuarterandFirstSixMonths2023and2022

ConsolidatedStatementsofComprehensiveIncome—SecondQuarterandFirstSixMonths2023and2022

ConsolidatedStatementsofChangesinShareholders’Equity—SecondQuarterandFirstSixMonths2023and

2022

ConsolidatedStatementsofCashFlows—FirstSixMonths2023and2022

NotestoConsolidatedFinancialStatements

Item2.

Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations

Item3.

QuantitativeandQualitativeDisclosuresAboutMarketRisk

Item4.

ControlsandProcedures

PartII–OtherInformation

Item1.

LegalProceedings

Item1A.

RiskFactors

Item2.

UnregisteredSalesofEquitySecuritiesandUseofProceedsandIssuerRepurchasesofEquitySecurities

Item3.

DefaultsUponSeniorSecurities

Item4.

MineSafetyDisclosures

Item5.

OtherInformation

Item6.

Exhibits

Signature

PageNo.

2

4

5

6

7

8

31

52

52

52

52

52

53

53

53

53

54

54

2

PartIFinancialInformation

Item1.FinancialStatements

BERKSHIREHATHAWAYINC.

andSubsidiaries

CONSOLIDATEDBALANCESHEETS

(dollarsinmillions)

June30,

2023

December31,

2022

(Unaudited)

ASSETS

InsuranceandOther:

Cashandcashequivalents*

$44,611$

32,260

Short-terminvestmentsinU.S.TreasuryBills

97,322

92,774

Investmentsinfixedmaturitysecurities

22,353

25,128

Investmentsinequitysecurities

353,409

308,793

Equitymethodinvestments

27,493

28,050

Loansandfinancereceivables

23,530

23,208

Otherreceivables

45,590

43,490

Inventories

25,295

25,366

Property,plantandequipment

21,413

21,113

Equipmentheldforlease

16,028

15,584

Goodwill

50,982

51,522

Otherintangibleassets

29,819

29,187

Deferredcharges-retroactivereinsurance

9,454

9,870

Other

19,917

19,657

787,216

726,002

Railroad,UtilitiesandEnergy:

Cashandcashequivalents*5,4443,551

Receivables6,0674,795

Property,plantandequipment171,747160,268

Goodwill34,87126,597

Regulatoryassets5,4525,062

Other30,77622,190

254,357222,463

$1,041,573$948,465

——————

*IncludesU.S.TreasuryBillswithmaturitiesofthreemonthsorlesswhenpurchasedof$24.5billionatJune30,2023and$2.6billionatDecember31,2022.

SeeaccompanyingNotestoConsolidatedFinancialStatements

3

BERKSHIREHATHAWAYINC.

andSubsidiaries

CONSOLIDATEDBALANCESHEETS

(dollarsinmillions)

June30,

2023

December31,

2022

(Unaudited)

LIABILITIESANDSHAREHOLDERS’EQUITY

InsuranceandOther:

Unpaidlossesandlossadjustmentexpenses

$109,030

$107,472

Unpaidlossesandlossadjustmentexpenses-retroactivereinsurancecontracts

34,421

35,415

Unearnedpremiums

31,173

28,657

Life,annuityandhealthinsurancebenefits

19,635

19,753

Otherpolicyholderliabilities

10,868

11,370

Accountspayable,accrualsandotherliabilities

31,999

33,201

Aircraftrepurchaseliabilitiesandunearnedleaserevenues

7,375

6,820

Notespayableandotherborrowings

41,389

46,538

285,890

289,226

Railroad,UtilitiesandEnergy:

Accountspayable,accrualsandotherliabilities

20,234

16,615

Regulatoryliabilities

6,719

7,369

Notespayableandotherborrowings

83,958

76,206

110,911

100,190

Incometaxes,principallydeferred

93,011

77,368

Totalliabilities

489,812

466,784

Redeemablenoncontrollinginterests

3,210

—

Shareholders’equity:

Commonstock

8

8

Capitalinexcessofparvalue

35,140

35,167

Accumulatedothercomprehensiveincome

(4,240)

(5,052)

Retainedearnings

582,543

511,127

Treasurystock,atcost

(73,568)

(67,826)

BerkshireHathawayshareholders’equity

539,883

473,424

Noncontrollinginterests

8,668

8,257

Totalshareholders’equity

548,551

481,681

$1,041,573

$948,465

SeeaccompanyingNotestoConsolidatedFinancialStatements

4

BERKSHIREHATHAWAYINC.

andSubsidiaries

CONSOLIDATEDSTATEMENTSOFEARNINGS

(dollarsinmillionsexceptpershareamounts)

(Unaudited)

SecondQuarter

FirstSixMonths

2023202220232022

Revenues:

InsuranceandOther:

Insurancepremiumsearned

$20,561$

18,081$

40,357$

35,569

Salesandservicerevenues

39,126

40,220

77,514

78,082

Leasingrevenues

2,079

1,887

4,123

3,559

Interest,dividendandotherinvestmentincome

3,846

2,861

7,075

4,723

65,612

63,049

129,069

121,933

Railroad,UtilitiesandEnergy:

Freightrailtransportationrevenues5,8086,61211,80912,556

Utilityandenergyoperatingrevenues19,5934,93534,5109,753

Servicerevenuesandotherincome1,4901,6052,5082,802

26,89113,15248,82725,111Totalrevenues92,50376,201177,896147,044

Investmentandderivativecontractgains(losses)33,061(66,919)67,819(68,897)

Costsandexpenses:

InsuranceandOther:

Insurancelossesandlossadjustmentexpenses14,08913,62028,31026,952

Life,annuityandhealthinsurancebenefits1,1281,1861,9132,523

Insuranceunderwritingexpenses3,7292,3777,3164,981

Costofsalesandservices30,62131,63360,94061,418

Costofleasing1,4571,4982,9342,730

Selling,generalandadministrativeexpenses5,0053,76210,6078,013

Interestexpense314302642566

56,34354,378112,662107,183

Railroad,UtilitiesandEnergy:

Freightrailtransportationexpenses

4,014

4,260

8,175

8,185

Utilitiesandenergycostofsalesandotherexpenses18,1593,84432,0057,435

Otherexpenses

1,189

1,527

2,060

2,683

Interestexpense9357851,8251,555

24,29710,41644,06519,858

Totalcostsandexpenses

156,727

127,041

64,794

80,640

Earnings(loss)beforeincometaxesandequitymethodearnings44,924(55,512)88,988(48,894) Equitymethodearnings5112041,199543

Earnings(loss)beforeincometaxes45,435(55,308)90,187(48,351)

Incometaxexpense(benefit)9,236(12,066)18,231(10,814)

Netearnings(loss)36,199(43,242)71,956(37,537)

Earningsattributabletononcontrollinginterests287379540504

Netearnings(loss)attributabletoBerkshireHathaway

shareholders$35,912$(43,621)$71,416$(38,041)

Netearnings(loss)peraverageequivalentClassAshare$24,775$(29,663)$49,152$(25,832)

Netearnings(loss)peraverageequivalentClassBshare*$16.52$(19.78)$32.77$(17.22)

AverageequivalentClassAsharesoutstanding1,449,5421,470,5771,452,9711,472,628

AverageequivalentClassBsharesoutstanding2,174,313,6702,205,865,2622,179,456,8162,208,942,539

——————

*ClassBsharesareeconomicallyequivalenttoone-fifteen-hundredthofaClassAshare.Accordingly,netearningsperaverageequivalentClassBshareoutstandingisequaltoone-fifteen-hundredthoftheequivalentClassAamount.SeeNote19.

SeeaccompanyingNotestoConsolidatedFinancialStatements

5

BERKSHIREHATHAWAYINC.

andSubsidiaries

CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVEINCOME

(dollarsinmillions)

(Unaudited)

FirstSixMonths

SecondQuarter

2023202220232022

Netearnings(loss)$36,199$(43,242)$71,956$(37,537)

Othercomprehensiveincome:

Unrealizedgains(losses)oninvestments(41)(211)206(447)

Applicableincometaxes2144(32)95

Foreigncurrencytranslation383(1,750)632(2,065)

Applicableincometaxes(21)63(15)52

Long-durationinsurancecontractdiscountratechanges4872,7341205,812

Applicableincometaxes(125)(587)(49)(1,246)

Definedbenefitpensionplans2155241

Applicableincometaxes(6)(4)(12)(9)

Other,net5768(63)155

Othercomprehensiveincome,net7573728392,388

Comprehensiveincome36,956(42,870)72,795(35,149)

Comprehensiveincomeattributabletononcontrollinginterests308350567472

ComprehensiveincomeattributabletoBerkshireHathawayshareholders$36,648$(43,220)$72,228$(35,621)

SeeaccompanyingNotestoConsolidatedFinancialStatements

6

BERKSHIREHATHAWAYINC.

andSubsidiaries

CONSOLIDATEDSTATEMENTSOFCHANGESINSHAREHOLDERS’EQUITY

(dollarsinmillions)

(Unaudited)

BerkshireHathawayshareholders’equity

Commonstock

andcapitalin

excessofpar

value

Accumulated

other

comprehensive

income

Retained

earnings

Treasurystock

Non-

controlling

interests

Total

Forthesecondquarterandfirstsixmonthsof2023

BalanceatDecember31,2022aspreviouslyreported

$35,175

$(6,591)

$511,602

$(67,826)

$8,257

$480,617

AdoptionofASU2018-12

1,539

(475)

1,064

BalanceatDecember31,2022asrevised

35,175

(5,052)

511,127

(67,826)

8,257

481,681

Netearnings

—

—

35,504

—

253

35,757

Othercomprehensiveincome,net

76

6

82

Acquisitionofcommonstock

—

—

—

(4,439)

—

(4,439)

Transactionswithnoncontrollinginterestsandother

(11)

7

(4)

BalanceatMarch31,2023

$35,164

$(4,976)

$546,631

$(72,265)

$8,523

$513,077

Netearnings

—

—

35,912

—

287

36,199

Othercomprehensiveincome,net

736

21

757

Acquisitionofcommonstock

—

—

—

(1,303)

—

(1,303)

Transactionswithnoncontrollinginterestsandother

(16)

(163)

(179)

BalanceatJune30,2023

$35,148

$(4,240)

$582,543

$(73,568)

$8,668

$548,551

Forthesecondquarterandfirstsixmonthsof2022

BalanceatDecember31,2021asoriginallyreported

$35,600

$(4,027)

$534,421

$(59,795)

$8,731

$514,930

AdoptionofASU2018-12

(4,096)

(535)

(4,631)

BalanceatDecember31,2021asrevised

35,600

(8,123)

533,886

(59,795)

8,731

510,299

Netearnings

—

—

5,580

—

125

5,705

Othercomprehensiveincome,net

2,019

(3)

2,016

Acquisitionofcommonstock

—

—

—

(3,111)

—

(3,111)

Transactionswithnoncontrollinginterestsandother

(6)

(129)

(135)

BalanceatMarch31,2022

$35,594

$(6,104)

$539,466

$(62,906)

$8,724

$514,774

Netearnings(loss)

—

—

(43,621)

—

379

(43,242)

Othercomprehensiveincome,net

401

(29)

372

Acquisitionofcommonstock

—

—

—

(1,028)

—

(1,028)

Transactionswithnoncontrollinginterestsandother

BalanceatJune30,2022

(382)

$35,212

$(5,703)

$495,845

$(63,934)

(650)

$8,424

(1,032)

$469,844

SeeaccompanyingNotestoConsolidatedFinancialStatements

7

88,706

$

BERKSHIREHATHAWAYINC.

andSubsidiaries

CONSOLIDATEDSTATEMENTSOFCASHFLOWS

(dollarsinmillions)

(Unaudited)

FirstSixMonths20232022

operatingactivities:

Cashflowsfrom

Netearnings(loss)$71,956$(37,537)

Adjustmentstoreconcilenetearningstooperatingcashflows:

Investment(gains)losses(67,819)68,589

Depreciationandamortization6,1475,413

Other(3,126)(2,592)

Changesinoperatingassetsandliabilities:

Unpaidlossesandlossadjustmentexpenses2751,505

Deferredcharges-retroactivereinsurance416426

Unearnedpremiums2,4922,384

Receivablesandoriginatedloans(1,194)(6,455)

Inventories505(4,080)

Otherassets(980)(620)

Otherliabilities(2,721)1,247

Incometaxes15,176(12,923)

Netcashflowsfromoperatingactivities21,12715,357

Cashflowsfrominvestingactivities:

Purchasesofequitysecurities(7,442)(57,269)

Salesofequitysecurities25,83312,044

PurchasesofU.S.TreasuryBillsandfixedmaturitysecurities(99,060)(100,355)

SalesofU.S.TreasuryBillsandfixedmaturitysecurities39,99154,637

RedemptionsandmaturitiesofU.S.TreasuryBillsandfixedmaturitysecurities59,81523,681

Acquisitionsofbusinesses,netofcashacquired(8,516)(103)

Purchasesofproperty,plantandequipmentandequipmentheldforlease(8,398)(6,833)

Other51325

Netcashflowsfrominvestingactivities2,736(74,173)

Cashflowsfromfinancingactivities:

Proceedsfromborrowingsofinsuranceandotherbusinesses1,2256,972

Repaymentsofborrowingsofinsuranceandotherbusinesses(5,388)(1,440)

Proceedsfromborrowingsofrailroad,utilitiesandenergybusinesses2,7883,189

Repaymentsofborrowingsofrailroad,utilitiesandenergybusinesses(2,187)(1,374)

Changesinshort-termborrowings,net582(85)

Acquisitionoftreasurystock(5,850)(4,191)

Other,principallytransactionswithnoncontrollinginterests(803)(1,464)

Netcashflowsfromfinancingactivities(9,633)1,607

(273)(57,482)88,706

Effectsofforeigncurrencyexchangeratechanges