Berkshire Hathaway Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Berkshire Hathaway Inc. has filed its Q1 2024 10-Q report.</b>

AI Summary

BERKSHIRE HATHAWAY INC (BRK-A) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. Berkshire Hathaway Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's Standard Industrial Classification is FIRE, MARINE & CASUALTY INSURANCE [6331]. The filing was made on May 6, 2024. The company's principal business address is 3555 FARNAM STREET, OMAHA, NE 68131.

Why It Matters

For investors and stakeholders tracking BERKSHIRE HATHAWAY INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational updates for Berkshire Hathaway Inc. during the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's current financial health, investment portfolio performance, and overall business strategy.

Risk Assessment

Risk Level: low — BERKSHIRE HATHAWAY INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant negative developments, indicating a stable operational status.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to identify any shifts in investment strategy or operational profitability.

Key Numbers

• 20240331 — Conformed Period of Report (Quarterly report period)
• 20240506 — Filed As Of Date (Date of filing)
• 0001067983 — Central Index Key (Company identifier)
• 6331 — Standard Industrial Classification (Industry code for insurance)

Key Players & Entities

• BERKSHIRE HATHAWAY INC (company) — Filer name
• 0000950170-24-053185 (other) — Accession number
• 20240331 (date) — Conformed period of report
• 20240506 (date) — Filed as of date
• 0001067983 (company) — Central Index Key
• 6331 (other) — Standard Industrial Classification
• DE (other) — State of incorporation
• 3555 FARNAM STREET (other) — Business address street 1

FAQ

Industry Context

Berkshire Hathaway Inc. operates primarily in the insurance sector, with significant holdings in diverse industries including energy, manufacturing, and retail.

Regulatory Implications

As a publicly traded company, Berkshire Hathaway Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the consolidated financial statements for revenue, net earnings, and cash flows for Q1 2024.
2. Review disclosures related to investments and insurance operations for any significant changes or trends.
3. Examine any updates to risk factors or legal proceedings mentioned in the report.

Key Dates

• 2024-03-31: End of Reporting Period — Marks the end of the first quarter for which financial data is reported.
• 2024-05-06: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the 10-K annual report filed previously.

Filing Documents

• brka-20240331.htm (10-Q) — 3907KB
• brka-ex31_1.htm (EX-31.1) — 12KB
• brka-ex31_2.htm (EX-31.2) — 13KB
• brka-ex32_1.htm (EX-32.1) — 6KB
• brka-ex32_2.htm (EX-32.2) — 6KB
• brka-ex95.htm (EX-95) — 159KB
• 0000950170-24-053185.txt (&nbsp;) — 18747KB
• brka-20240331.xsd (EX-101.SCH) — 2285KB
• brka-20240331_htm.xml (XML) — 4386KB

– Financial Information

Part I – Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets—March 31, 2024 and December 31, 2023 2 Consolidated Statements of Earnings—First Quarter 2024 and 2023 4 Consolidated Statements of Comprehensive Income—First Quarter 2024 and 2023 5 Consolidated Statements of Changes in Shareholders' Equity—First Quarter 2024 and 2023 5 Consolidated Statements of Cash Flows—First Quarter 2024 and 2023 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 46 Item 4.

Controls and Procedures

Controls and Procedures 46

– Other Information

Part II – Other Information 46 Item 1.

Legal Proceedings

Legal Proceedings 46 Item 1A.

Risk Factors

Risk Factors 46 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities 47 Item 3. Defaults Upon Senior Securities 47 Item 4. Mine Safety Disclosures 47 Item 5. Other Information 47 Item 6. Exhibits 48 Signature 48 1

Financia l Information

Part I Financia l Information

Financi al Statements

Item 1. Financi al Statements BERKSHIRE HATHAWAY INC. and Subsidiaries CONSOLIDATED BA LANCE SHEETS (dollars in millions) March 31, 2024 December 31, 2023 (Unaudited) ASSETS Insurance and Other: Cash and cash equivalents* $ 28,891 $ 33,672 Short-term investments in U.S. Treasury Bills 153,444 129,619 Investments in fixed maturity securities 17,167 23,758 Investments in equity securities 335,864 353,842 Equity method investments 29,585 29,066 Loans and finance receivables 25,435 24,681 Other receivables 46,772 44,174 Inventories 23,670 24,159 Property, plant and equipment 22,058 22,030 Equipment held for lease 17,154 16,947 Goodwill 50,813 50,868 Other intangible assets 29,045 29,327 Deferred charges - retroactive reinsurance 9,318 9,495 Other 20,398 19,568 809,614 811,206 Railroad, Utilities and Energy: Cash and cash equivalents* 6,658 4,350 Receivables 6,063 7,086 Property, plant and equipment 178,288 177,616 Goodwill 33,736 33,758 Regulatory assets 5,570 5,565 Other 30,106 30,397 260,421 258,772 $ 1,070,035 $ 1,069,978 —————— * Includes U.S. Treasury Bills with maturities of three months or less when purchased of $ 4.0 billion at March 31, 2024 and $ 4.8 billion at December 31, 2023. See accompanying Notes to Consolidated Financial Statements 2 BERKSHIRE HATHAWAY INC. and Subsidiaries CON SOLIDATED BALANCE SHEETS (dollars in millions) March 31, 2024 December 31, 2023 (Unaudited) LIABILITIES AND SHAREHOLDERS' EQUITY Insurance and Other: Unpaid losses and loss adjustment expenses $ 111,482 $ 111,082 Unpaid losses and loss adjustment expenses - retroactive reinsurance contracts 34,245 34,647 Unearned premiums 31,975 30,507 Life, annuity and health insurance benefits 17,987 20,213 Other policyholder liabilities 10,662 11,545 Accounts payable, accrual

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 Note 1. General The accompanying unaudited Consolidated Financial Statements include the accounts of Berkshire Hathaway Inc. ("Berkshire" or "Company") consolidated with the accounts of all its subsidiaries and affiliates in which Berkshire holds controlling financial interests as of the financial statement date. In these notes, the terms "us," "we" or "our" refer to Berkshire and its consolidated subsidiaries. Reference is made to Berkshire's most recently issued Annual Report on Form 10-K ("Annual Report"), which includes information necessary or useful to understanding Berkshire's businesses and financial statement presentations. Our significant accounting policies and practices were presented as Note 1 to the Consolidated Financial Statements included in the Annual Report. Financial information in this Quarterly Report reflects all adjustments that are, in the opinion of management, necessary to a fair statement of results for the interim periods in accordance with accounting principles generally accepted in the United States ("GAAP"). For several reasons, our results for interim periods are not normally indicative of results to be expected for the year. The timing and magnitude of catastrophe losses incurred by insurance subsidiaries and the estimation error inherent to the process of determining liabilities for unpaid losses of insurance subsidiaries can be more significant to results of interim periods than to results for a full year. Given the size of our equity security investment portfolio, changes in market prices and the related changes in unrealized gains and losses on equity securities will produce significant volatility in our interim and annual earnings. In addition, gains and losses from the periodic revaluation of certain assets and liabilities denominated in foreign currencies and asset impairment charges may cause significant variations in periodic net earnings. Significant estim

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 3. Significant business acquisitions Our long-held acquisition strategy is to acquire businesses that have consistent earning power, good returns on equity and able and honest management. Financial results attributable to business acquisitions are included in our Consolidated Financial Statements beginning on their respective acquisition dates. On January 31, 2023, we acquired an additional 41.4 % interest in Pilot Travel Centers, LLC ("Pilot") for approximately $ 8.2 billion. The acquisition increased our interest to 80 %, representing a controlling interest in Pilot for financial reporting purposes as of that date. Accordingly, we began consolidating Pilot's financial statements in our Consolidated Financial Statements on February 1, 2023. Prior to that date, we accounted for our 38.6 % interest in Pilot under the equity method. Pilot operates more than 650 travel center and 75 fuel-only locations across 44 U.S. states and five Canadian provinces, primarily under the names Pilot or Flying J, as well as large wholesale fuel and fuel marketing businesses in the U.S. Pilot also sells diesel fuel at other locations in the U.S. and Canada through various arrangements with third party travel centers and operates a water disposal business in the oil fields sector. Since Pilot's most significant business activities involve purchasing and selling fuel (energy) on a wholesale and retail basis, and other energy-related businesses, we include Pilot within the railroad, utilities and energy sections of our Consolidated Balance Sheets and Consolidated Statements of Earnings. In applying the acquisition method of accounting, we remeasured our previously held 38.6 % investment in Pilot to fair value as of the acquisition date. We recognized a one-time, non-cash remeasurement gain of approximately $ 3.0 billion in the first quarter of 2023, representing the excess of the fair value of that interest over the carrying value u

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 4. Investments in fixed maturity securities As of March 31, 2024, approximately 95 % of our foreign government holdings were rated AA or higher by at least one of the major rating agencies. The amortized cost and estimated fair value of fixed maturity securities at March 31, 2024 are summarized below by contractual maturity dates (in millions). Actual maturities may differ from contractual maturities due to prepayment rights held by issuers. Due in one year or less Due after one year through five years Due after five years through ten years Due after ten years Mortgage- backed securities Total Amortized cost $ 12,218 $ 3,869 $ 600 $ 135 $ 147 $ 16,969 Fair value 12,177 3,889 798 144 159 17,167 Note 5. Investments in equity securities Investments in equity securities are summarized as follows (in millions). Cost Basis Net Unrealized Gains Fair Value March 31, 2024* Banks, insurance and finance $ 28,513 $ 64,299 $ 92,812 Consumer products 29,214 134,364 163,578 Commercial, industrial and other 46,026 33,448 79,474 $ 103,753 $ 232,111 $ 335,864 —————— * Approximately 75 % of the aggregate fair value was concentrated in five companies (American Express Company – $ 34.5 billion; Apple Inc. – $ 135.4 billion; Bank of America Corporation – $ 39.2 billion; The Coca-Cola Company – $ 24.5 billion and Chevron Corporation – $ 19.4 billion). Cost Basis Net Unrealized Gains Fair Value December 31, 2023* Banks, insurance and finance $ 27,136 $ 51,176 $ 78,312 Consumer products 34,248 166,895 201,143 Commercial, industrial and other 48,032 26,355 74,387 $ 109,416 $ 244,426 $ 353,842 —————— * Approximately 79 % of the aggregate fair value was concentrated in five companies (American Express Company – $ 28.4 billion; Apple Inc. – $ 174.3 billion; Bank of America Corpo

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 5. Investments in equity securities On March 31, 2024, we owned 151.6 million shares of American Express Company ("American Express") common stock representing 21.1 % of its outstanding common stock. Since 1995, we have been party to an agreement with American Express whereby we agreed to vote a significant portion of our shares in accordance with the recommendations of the American Express Board of Directors. We have also agreed to passivity commitments as requested by the Board of Governors of the Federal Reserve System, which collectively, in our judgment, restrict our ability to exercise significant influence over the operating and financial policies of American Express. Accordingly, we do not use the equity method with respect to our investment in American Express common stock, and we continue to record our investment at fair value. Note 6. Equity method investments Berkshire and its subsidiaries hold investments in certain businesses that are accounted for pursuant to the equity method. Currently, the most significant of these are our investments in the common stock of The Kraft Heinz Company ("Kraft Heinz") and Occidental. As of March 31, 2024, we owned 26.8 % of the outstanding Kraft Heinz common stock and 28.2 % of the outstanding Occidental common stock, which excluded the potential effect of the exercise of the Occidental common stock warrants. Kraft Heinz manufactures and markets food and beverage products, including condi

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