巴菲特旗下伯克希尔哈撒韦2023年第一季度业绩报告

UNITEDSTATESSECURITIESANDEXCHANGECOMMISSIONWashington,D.C.20549

FORM10-Q

(MarkOne)

☒QUARTERLYREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934

ForthequarterlyperiodendedMarch31,2023

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☒

NumberofsharesofcommonstockoutstandingasofApril25,2023:

ClassA—585,848

ClassB—1,295,970,861

1

BERKSHIREHATHAWAYINC.

PageNo.

PartI–FinancialInformation

Item1.FinancialStatements

ConsolidatedBalanceSheets—March31,2023andDecember31,2022

2

ConsolidatedStatementsofEarnings—FirstQuarter2023and2022

4

ConsolidatedStatementsofComprehensiveIncome—FirstQuarter2023and2022

5

ConsolidatedStatementsofChangesinShareholders’Equity—FirstQuarter2023and2022

5

ConsolidatedStatementsofCashFlows—FirstQuarter2023and2022

6

NotestoConsolidatedFinancialStatements

7

Item2.

Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations

28

Item3.

QuantitativeandQualitativeDisclosuresAboutMarketRisk

47

Item4.

ControlsandProcedures

47

PartII–OtherInformation

47

Item1.

LegalProceedings

47

Item1A.

RiskFactors

47

Item2.

UnregisteredSalesofEquitySecuritiesandUseofProceedsandIssuerRepurchasesofEquitySecurities

48

Item3.

DefaultsUponSeniorSecurities

48

Item4.

MineSafetyDisclosures

48

Item5.

OtherInformation

48

Item6.

Exhibits

50

Signature

50

2

PartIFinancialInformation

Item1.FinancialStatements

BERKSHIREHATHAWAYINC.

andSubsidiaries

CONSOLIDATEDBALANCESHEETS

(dollarsinmillions)

March31,

2023

December31,

2022

(Unaudited)

ASSETS

InsuranceandOther:

Cashandcashequivalents*

$23,805

$32,260

Short-terminvestmentsinU.S.TreasuryBills

103,869

92,774

Investmentsinfixedmaturitysecurities

22,566

25,128

Investmentsinequitysecurities

328,161

308,793

Equitymethodinvestments

26,403

28,050

Loansandfinancereceivables

23,144

23,208

Otherreceivables

45,674

43,490

Inventories

25,499

25,366

Property,plantandequipment

21,208

21,113

Equipmentheldforlease

15,674

15,584

Goodwill

50,997

51,522

Otherintangibleassets

30,001

29,187

Deferredcharges-retroactivereinsurance

9,699

9,870

Other

19,729

19,657

746,429

726,002

Railroad,UtilitiesandEnergy:

Cashandcashequivalents*

2,942

3,551

Receivables

6,814

4,795

Property,plantandequipment

168,973

160,268

Goodwill

32,505

26,597

Regulatoryassets

5,557

5,062

Other

33,852

22,190

250,643

222,463

$997,072

$948,465

——————

*IncludesU.S.TreasuryBillswithmaturitiesofthreemonthsorlesswhenpurchasedof$3.6billionatMarch31,2023and$2.6billionatDecember31,2022.

SeeaccompanyingNotestoConsolidatedFinancialStatements

3

BERKSHIREHATHAWAYINC.

andSubsidiaries

CONSOLIDATEDBALANCESHEETS

(dollarsinmillions)

March31,

2023

December31,

2022

(Unaudited)

LIABILITIESANDSHAREHOLDERS’EQUITY

InsuranceandOther:

Unpaidlossesandlossadjustmentexpenses

$107,957

$107,472

Unpaidlossesandlossadjustmentexpensesunderretroactivereinsurancecontracts

35,063

35,415

Unearnedpremiums

30,359

28,657

Life,annuityandhealthinsurancebenefits

19,937

19,753

Otherpolicyholderliabilities

11,231

11,370

Accountspayable,accrualsandotherliabilities

32,842

33,201

Aircraftrepurchaseliabilitiesandunearnedleaserevenues

7,052

6,820

Notespayableandotherborrowings

41,436

46,538

285,877

289,226

Railroad,UtilitiesandEnergy:

Accountspayable,accrualsandotherliabilities

19,683

16,615

Regulatoryliabilities

6,858

7,369

Notespayableandotherborrowings

82,188

76,206

108,729

100,190

Incometaxes,principallydeferred

86,206

77,368

Totalliabilities

480,812

466,784

Redeemablenoncontrollinginterests

3,183

—

Shareholders’equity:

Commonstock

8

8

Capitalinexcessofparvalue

35,156

35,167

Accumulatedothercomprehensiveincome

(4,976)

(5,052)

Retainedearnings

546,631

511,127

Treasurystock,atcost

(72,265)

(67,826)

BerkshireHathawayshareholders’equity

504,554

473,424

Noncontrollinginterests

8,523

8,257

Totalshareholders’equity

513,077

481,681

$997,072

$948,465

SeeaccompanyingNotestoConsolidatedFinancialStatements

4

63,457

BERKSHIREHATHAWAYINC.

andSubsidiaries

CONSOLIDATEDSTATEMENTSOFEARNINGS

(dollarsinmillionsexceptpershareamounts)

(Unaudited)

FirstQuarter20232022

Revenues:

InsuranceandOther:

Insurancepremiumsearned$19,796$17,488

Salesandservicerevenues38,38837,862

Leasingrevenues2,0441,672

3,229

1,862

Interest,dividendandotherinvestmentincome

58,884

Railroad,UtilitiesandEnergy:

Freightrailtransportationrevenues6,0015,944

Utilityandenergyoperatingrevenues14,9174,818

Servicerevenuesandotherincome1,0181,197

21,93611,959Totalrevenues85,39370,843

Investmentandderivativecontractgains(losses)34,758(1,978)

Costsandexpenses:

InsuranceandOther:

Insurancelossesandlossadjustmentexpenses14,22113,332

Life,annuityandhealthinsurancebenefits7851,337

Insuranceunderwritingexpenses3,5872,604

Costofsalesandservices

30,319

29,785

Costofleasing1,4771,232

Selling,generalandadministrativeexpenses5,6024,251

Interestexpense32826456,31952,805

Railroad,UtilitiesandEnergy:

Freightrailtransportationexpenses

4,161

3,925

Utilitiesandenergycostofsalesandotherexpenses13,8463,591

Otherexpenses8711,156

Interestexpense890770

19,768

9,442

Totalcostsandexpenses

76,087

62,247

Earningsbeforeincometaxesandequitymethodearnings44,0646,618

Equitymethodearnings688339

Earningsbeforeincometaxes44,7526,957

Incometaxexpense8,9951,252

Netearnings35,7575,705

Earningsattributabletononcontrollinginterests253125

NetearningsattributabletoBerkshireHathawayshareholders$35,504$5,580

NetearningsperaverageequivalentClassAshare$24,377$3,784

NetearningsperaverageequivalentClassBshare*$16.25$2.52

AverageequivalentClassAsharesoutstanding1,456,4381,474,703

AverageequivalentClassBsharesoutstanding2,184,657,1092,212,054,009

——————

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

SeeaccompanyingNotestoConsolidatedFinancialStatements

5

BERKSHIREHATHAWAYINC.

andSubsidiaries

CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVEINCOME

(dollarsinmillions)

(Unaudited)

FirstQuarter20232022

Netearnings$35,757$5,705

Othercomprehensiveincome:

Unrealizedgains(losses)oninvestments

247

(236)

Applicableincometaxes

(53)

51

Foreigncurrencytranslation

249

(315)

Applicableincometaxes

6

(11)

Longdurationinsurancecontractdiscountratechanges

(367)

3,078

Applicableincometaxes

76

(659)

Definedbenefitpensionplans

50

26

Applicableincometaxes

(6)

(5)

Other,net

(120)

87

Othercomprehensiveincome,net

82

2,016

Comprehensiveincome

35,839

7,721

Comprehensiveincomeattributabletononcontrollinginterests

259

122

ComprehensiveincomeattributabletoBerkshireHathawayshareholders

$3

5,580

$

7,599

CONSOLIDATEDSTATEMENTSOFCHANGESINSHAREHOLDERS’EQUITY

(dollarsinmillions)

(Unaudited)

BerkshireHathawayshareholders’equity

Commonstock

andcapitalin

excessofpar

value

Accumulated

other

comprehensive

income

Retained

earnings

Treasurystock

Non-

controlling

interests

Total

Forthefirstquarterof2023

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

Forthefirstquarterof2022

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)

—

(1

29

)

(135)

BalanceatMarch31,2022

$35,594

$(6,104)

$539,466

$(62,906)

$8,724

$514,774

SeeaccompanyingNotestoConsolidatedFinancialStatements

6

BERKSHIREHATHAWAYINC.

andSubsidiaries

CONSOLIDATEDSTATEMENTSOFCASHFLOWS

(dollarsinmillions)

(Unaudited)

FirstQuarter20232022

operatingactivities:

Cashflowsfrom

Netearnings

$

35,757

$

5,705

Adjustmentstoreconcilenetearningstooperatingcashflows:

Investment(gains)losses(34,758)1,735

Depreciationandamortization3,0512,703

Other(1,293)(960)

Changesinoperatingassetsandliabilities:

Unpaidlossesandlossadjustmentexpenses22558

Deferredcharges-retroactivereinsurance172215

Unearnedpremiums1,6861,912

Receivablesandoriginatedloans(922)(3,536)

Inventories(15)(1,842)

Otherassets(987)(328)

Otherliabilities(2,649)(165)

Incometaxes8,629829

Netcashflowsfromoperatingactivities8,6936,826

Cashflowsfrominvestingactivities:

Purchasesofequitysecurities(2,873)(51,119)

Salesofequitysecurities13,2839,724

PurchasesofU.S.TreasuryBillsandfixedmaturitysecurities(45,515)(58,746)

SalesofU.S.TreasuryBillsandfixedmaturitysecurities12,98237,795

RedemptionsandmaturitiesofU.S.TreasuryBillsandfixedmaturitysecurities25,3646,571

Acquisitionsofbusinesses,netofcashacquired(7,629)(34)

Purchasesofproperty,plantandequipmentandequipmentheldforlease(3,713)(3,090)

Other182333

Netcashflowsfrominvestingactivities(7,919)(58,566)

Cashflowsfromfinancingactivities:

Proceedsfromborrowingsofinsuranceandotherbusinesses—

6,977

Repaymentsofborrowingsofinsuranceandotherbusinesses

(4,946)

(614)

Proceedsfromborrowingsofrailroad,utilitiesandenergybusinesses

405

Repaymentsofborrowingsofrailroad,utilitiesandenergybusinesses

(1,244)

(395)

Changesinshorttermborrowings,net

1,098

(183)

Acquisitionoftreasurystock

(4,450)

(3,180)

Other,principallytransactionswithnoncontrollinginterests

(380)

(367)

Netcashflowsfromfinancingactivities

(9,922)

2,643

Effectsofforeigncurrencyexchangeratechanges

47

53

Increase(decrease)incashandcashequivalentsandrestrictedcash

(9,101)

(49,044)

Cashandcashequivalentsandrestrictedcashatbeginningofyear*

36,399

88,706

Cashandcashequivalentsandrestrictedcashatendoffirstquarter*

$27,298

$39,662

*Cashandcashequivalentsandrestrictedcasharecomprisedof:

Beginningofyear—

InsuranceandOther

$32,260

$85,319

Railroad,UtilitiesandEnergy

3,551

2,865

Restrictedcashincludedinotherassets

588

522

$36,399

$88,706

Endoffirstquarter—

InsuranceandOther

$23,805

$35,542

Railroad,UtilitiesandEnergy

2,942

3,571

Restrictedcashincludedinotherassets

551

549

$27,298

$39,662

SeeaccompanyingNotestoConsolidatedFinancialStatements

7

BERKSHIREHATHAWAYINC.

andSubsidiaries

NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS

March31,2023

Note1.General

TheaccompanyingunauditedConsolidatedFinancialStatementsincludetheaccountsofBerkshireHathawayInc.(“Berkshire”or“Company”)consolidatedwiththeaccountsofallitssubsidiariesandaffiliatesinwhichBerkshireholdscontrollingfinancialinterestsasofthefinancialstatementdate.Inthesenotes,theterms“us,”“we”or“our”refertoBerkshireanditsconsolidatedsubsidiaries.ReferenceismadetoBerkshire’smostrecentlyissuedAnnualReportonForm10-K(“AnnualReport”),whichincludesinformationnecessaryorusefultounderstandingBerkshire’sbusinessesandfinancialstatementpresentations.OursignificantaccountingpoliciesandpracticeswerepresentedasNote1totheConsolidatedFinancialStatementsincludedintheAnnualReport.

FinancialinformationinthisQuarterlyReportreflectsalladjustments(consistingonlyofnormalrecurringadjustments)thatare,intheopinionofmanagement,necessarytoafairstatementofresultsfortheinterimperiodsinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStates(“GAAP”).Foranumberofreasons,ourresultsforinterimperiodsarenotnormallyindicativeofresultstobeexpectedfortheyear.Thetimingandmagnitudeofcatastrophelossesincurredbyinsurancesubsidiariesandtheestimationerrorinherenttotheprocessofdeterminingliabilitiesforunpaidlossesofinsurancesubsidiariescanbemoresignificanttoresultsofinterimperiodsthantoresultsforafullyear.Giventhesizeofourequitysecurityinvestmentportfolio,changesinmarketpricesandtherelatedchangesinunrealizedgainsandlossesonequitysecuritieswillproducesignificantvolatilityinourinterimandannual