Pension plans

12 Months Ended

Dec. 31, 2024

Retirement Benefits [Abstract]

Pension plans

(24)Pension plans

Certain Berkshire subsidiaries sponsor defined benefit pension plans. Plan benefits are generally based on years of service and compensation or fixed benefit rates. Plan sponsors may make contributions to the plans to meet regulatory requirements or may make discretionary contributions. Benefits under qualified U.S. and certain non-U.S. defined benefit pension plans are funded with assets held in trusts. Certain other non-qualified retirement plans are unfunded. Our net periodic pension expense for each of the three years ending December 31, 2024 was as follows (in millions).

	2024			2023			2022
Service cost	$	107		$	111		$	181
Interest cost		617			640			482
Expected return on plan assets		(818	)		(785	)		(975	)
Other		41			2			156
Net periodic pension expense	$	(53	)	$	(32	)	$	(156	)

The accumulated benefit obligation (“ABO”) is the actuarial present value of benefits earned based on service and compensation prior to the valuation date. The ABO was $11.2 billion at December 31, 2024 and $12.3 billion at December 31, 2023. The projected benefit obligation (“PBO”) is the actuarial present value of benefits earned based upon service and compensation prior to the valuation date and, if applicable, includes assumptions regarding future compensation levels.

Reconciliations of the changes in plan assets and PBOs for each of the two years ending December 31, 2024 and the asset and liability balances reflected in the Consolidated Balance Sheets at year end 2024 and 2023 follow (in millions).

	2024			2023
Plan assets
Balance at the beginning of the year	$	13,379		$	12,592
Employer contributions		111			145
Benefits paid		(810	)		(852	)
Settlements paid		(354	)		(448	)
Actual return on plan assets		1,909			1,783
Other		(55	)		159
Balance at the end of the year	$	14,180		$	13,379
Projected benefit obligations
Balance at the beginning of the year	$	12,767		$	12,738
Service cost		107			111
Interest cost		617			640
Benefits paid		(810	)		(852	)
Settlements paid		(354	)		(448	)
Actuarial (gains) losses and other		(607	)		578
Balance at the end of the year	$	11,720		$	12,767
Net funded status - asset (liability)	$	2,460		$	612
Balances included in other assets	$	3,490		$	1,823
Balances included in accounts payable and other liabilities	$	1,030		$	1,211

Liabilities include benefit obligations of unfunded plans of $1.0 billion at December 31, 2024 and 2023, respectively.

Notes to Consolidated Financial Statements

(24)Pension plans

Weighted average assumptions used in determining PBOs and net periodic pension expense follow.

	2024			2023			2022
Discount rate applicable to PBOs		5.5	%		5.0	%		5.2	%
Expected long-term rate of return on plan assets		5.9			6.0		5.9
Rate of compensation increase	2.6			2.6			2.5
Discount rate applicable to net periodic pension expense		5.1			5.3			2.9

Expected benefit payments over the next ten years are (in millions): 2025 – $893; 2026 – $873; 2027 – $875; 2028 – $884; 2029 – $883; and 2030 through 2034 – $4,379. Our subsidiaries expect to make contributions of $114 million to the pension plans in 2025.

Fair value measurements of plan assets as of December 31, 2024 and 2023 follow (in millions).

	Fair Value								Investments carried at net
	Total		Level 1		Level 2		Level 3		asset value
December 31, 2024
Cash and cash equivalents	$	600	$	556	$	44	$	—	$	—
Equity securities		9,757		9,036		581		140		—
Fixed maturity securities		1,747		953		794		—		—
Investment funds and other		2,076		385		144		23		1,524
	$	14,180	$	10,930	$	1,563	$	163	$	1,524
December 31, 2023
Cash and cash equivalents	$	449	$	370	$	79	$	—	$	—
Equity securities		8,487		7,808		543		136		—
Fixed maturity securities		2,138		1,277		851		10		—
Investment funds and other		2,305		342		272		42		1,649
	$	13,379	$	9,797	$	1,745	$	188	$	1,649

Plan assets are generally invested with the long-term objective of producing earnings to adequately cover expected benefit obligations. The expected rates of return on plan assets reflect subjective assessments of expected long-term investment returns. Generally, past investment returns are not given significant consideration when establishing assumptions for expected long-term rates of return on plan assets. Actual experience will differ from the assumed rates of return.

Notes to Consolidated Financial Statements

(24)Pension plans

A reconciliation of the pre-tax accumulated other comprehensive income (loss) of our defined benefit pension plans for each of the two years ending December 31, 2024 follows (in millions).

	2024			2023
Balance at the beginning of the year	$	(161	)	$	(738	)
Amount included in net periodic pension expense		29			(12	)
Actuarial gains (losses) and other		1,599			589
Balance at the end of the year	$	1,467		$	(161	)

Our subsidiaries may also sponsor defined contribution retirement plans, such as 401(k) or profit-sharing plans. Employee contributions are subject to regulatory limitations and specific plan provisions. Several of these plans provide for employer matching contributions as specified in the plans and may provide for additional discretionary employer contributions. Our defined contribution plan expense was approximately $1.3 billion in 2024, $1.1 billion in 2023 and $0.8 billion in 2022.