Berkshire Hathaway Files Q2 2024 10-Q

TL;DR

**BRK.A Q2 10-Q FILED: Financials for June 30, 2024, are out.**

AI Summary

Berkshire Hathaway Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial position and operations, including its significant holdings in various assets and liabilities. Key financial data and disclosures are provided for investors and regulatory review.

Why It Matters

This filing provides crucial insights into Berkshire Hathaway's financial health and investment strategy for the second quarter of 2024, impacting investors and the broader market.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial disclosures, not indicating new or elevated risks.

Key Players & Entities

• BERKSHIRE HATHAWAY INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240805 (date) — Filing Date
• 0000950170-24-090305 (other) — Accession Number

FAQ

Filing Documents

• brka-20240630.htm (10-Q) — 4724KB
• brka-ex31_1.htm (EX-31.1) — 13KB
• 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) — 160KB
• 0000950170-24-090305.txt ( ) — 21251KB
• brka-20240630.xsd (EX-101.SCH) — 2271KB
• brka-20240630_htm.xml (XML) — 5257KB

– Financial Information

Part I – Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets—June 30, 2024 and December 31, 2023 2 Consolidated Statements of Earnings—Second Quarter and First Six Months 2024 and 2023 4 Consolidated Statements of Comprehensive Income—Second Quarter and First Six Months 2024 and 2023 5 Consolidated Statements of Changes in Shareholders' Equity—Second Quarter and First Six Months 2024 and 2023 5 Consolidated Statements of Cash Flows—First Six Months 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 29 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 48 Item 4.

Controls and Procedures

Controls and Procedures 48

– Other Information

Part II – Other Information 48 Item 1.

Legal Proceedings

Legal Proceedings 48 Item 1A.

Risk Factors

Risk Factors 48 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities 49 Item 3. Defaults Upon Senior Securities 49 Item 4. Mine Safety Disclosures 49 Item 5. Other Information 49 Item 6. Exhibits 50 Signature 50 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) June 30, 2024 December 31, 2023 (Unaudited) ASSETS Insurance and Other: Cash and cash equivalents* $ 36,884 $ 33,672 Short-term investments in U.S. Treasury Bills 234,618 129,619 Investments in fixed maturity securities 16,802 23,758 Investments in equity securities 284,871 353,842 Equity method investments 30,065 29,066 Loans and finance receivables 26,085 24,681 Other receivables 45,967 44,174 Inventories 23,498 24,159 Property, plant and equipment 22,144 22,030 Equipment held for lease 17,418 16,947 Goodwill 50,800 50,868 Other intangible assets 28,788 29,327 Deferred charges - retroactive reinsurance 9,064 9,495 Other 20,629 19,568 847,633 811,206 Railroad, Utilities and Energy: Cash and cash equivalents* 5,440 4,350 Receivables 6,502 7,086 Property, plant and equipment 179,907 177,616 Goodwill 33,611 33,758 Regulatory assets 5,392 5,565 Other 30,375 30,397 261,227 258,772 $ 1,108,860 $ 1,069,978 —————— * Includes U.S. Treasury Bills with maturities of three months or less when purchased of $ 4.1 billion at June 30, 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) June 30, 2024 December 31, 2023 (Unaudited) LIABILITIES AND SHAREHOLDERS' EQUITY Insurance and Other: Unpaid losses and loss adjustment expenses $ 112,804 $ 111,082 Unpaid losses and loss adjustment expenses - retroactive reinsurance contracts 33,494 34,647 Unearned premiums 32,185 30,507 Life, annuity and health insurance benefits 17,500 20,213 Other policyholder liabilities 10,719 11,545 Accounts payable, accruals a

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 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 may not be 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 estimates ar

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 June 30, 2024, approximately 94 % 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 June 30, 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 $ 11,002 $ 4,754 $ 577 $ 129 $ 141 $ 16,603 Fair value 10,990 4,756 766 139 151 16,802 Note 5. Investments in equity securities Investments in equity securities are summarized as follows (in millions). Cost Basis Net Unrealized Gains Fair Value June 30, 2024* Banks, insurance and finance $ 28,585 $ 66,341 $ 94,926 Consumer products 14,862 98,407 113,269 Commercial, industrial and other 45,006 31,670 76,676 $ 88,453 $ 196,418 $ 284,871 —————— * Approximately 72 % of the aggregate fair value was concentrated in five companies (American Express Company – $ 35.1 billion; Apple Inc. – $ 84.2 billion; Bank of America Corporation – $ 41.1 billion; The Coca-Cola Company – $ 25.5 billion and Chevron Corporation – $ 18.6 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 Corporation

View Full Filing

View this 10-Q filing on SEC EDGAR