x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
47-0813844
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
Large accelerated filer x
|
Accelerated filer ¨
|
Non-accelerated filer ¨
|
Smaller reporting company ¨
|
Page No.
|
|||||
2 | |||||
3 | |||||
4 | |||||
4 | |||||
5 | |||||
6-20 | |||||
21-35 | |||||
35 | |||||
35 | |||||
36 | |||||
36 | |||||
36 | |||||
36 | |||||
36 | |||||
36 | |||||
36 | |||||
36 |
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
ASSETS
|
(Unaudited)
|
|||||||
Insurance and Other:
|
||||||||
Cash and cash equivalents
|
$ | 33,594 | $ | 33,513 | ||||
Investments:
|
||||||||
Fixed maturity securities
|
30,750 | 31,222 | ||||||
Equity securities
|
87,993 | 76,063 | ||||||
Other
|
14,986 | 13,111 | ||||||
Receivables
|
21,366 | 19,012 | ||||||
Inventories
|
9,055 | 8,975 | ||||||
Property, plant and equipment
|
18,401 | 18,177 | ||||||
Goodwill
|
32,036 | 32,125 | ||||||
Other
|
17,906 | 18,121 | ||||||
266,087 | 250,319 | |||||||
Railroad, Utilities and Energy:
|
||||||||
Cash and cash equivalents
|
2,658 | 2,246 | ||||||
Property, plant and equipment
|
83,326 | 82,214 | ||||||
Goodwill
|
20,098 | 20,056 | ||||||
Other
|
13,689 | 12,861 | ||||||
119,771 | 117,377 | |||||||
Finance and Financial Products:
|
||||||||
Cash and cash equivalents
|
1,574 | 1,540 | ||||||
Investments in fixed maturity securities
|
948 | 966 | ||||||
Other investments
|
4,425 | 3,810 | ||||||
Loans and finance receivables
|
13,799 | 13,934 | ||||||
Goodwill
|
1,032 | 1,032 | ||||||
Other
|
3,726 | 3,669 | ||||||
25,504 | 24,951 | |||||||
$ | 411,362 | $ | 392,647 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Insurance and Other:
|
||||||||
Losses and loss adjustment expenses
|
$ | 63,712 | $ | 63,819 | ||||
Unearned premiums
|
11,010 | 8,910 | ||||||
Life, annuity and health insurance benefits
|
9,962 | 9,924 | ||||||
Accounts payable, accruals and other liabilities
|
18,214 | 18,466 | ||||||
Notes payable and other borrowings
|
13,635 | 13,768 | ||||||
116,533 | 114,887 | |||||||
Railroad, Utilities and Energy:
|
||||||||
Accounts payable, accruals and other liabilities
|
12,798 | 13,016 | ||||||
Notes payable and other borrowings
|
34,523 | 32,580 | ||||||
47,321 | 45,596 | |||||||
Finance and Financial Products:
|
||||||||
Accounts payable, accruals and other liabilities
|
1,269 | 1,224 | ||||||
Derivative contract liabilities
|
9,055 | 10,139 | ||||||
Notes payable and other borrowings
|
13,677 | 14,036 | ||||||
24,001 | 25,399 | |||||||
Income taxes, principally deferred
|
43,238 | 37,804 | ||||||
Total liabilities
|
231,093 | 223,686 | ||||||
Shareholders’ equity:
|
||||||||
Common stock
|
8 | 8 | ||||||
Capital in excess of par value
|
37,846 | 37,807 | ||||||
Accumulated other comprehensive income
|
25,517 | 17,654 | ||||||
Retained earnings
|
112,693 | 109,448 | ||||||
Treasury stock, at cost
|
(67 | ) | (67 | ) | ||||
Berkshire Hathaway shareholders’ equity
|
175,997 | 164,850 | ||||||
Noncontrolling interests
|
4,272 | 4,111 | ||||||
Total shareholders’ equity
|
180,269 | 168,961 | ||||||
$ | 411,362 | $ | 392,647 |
First Quarter
|
||||||||
2012
|
2011
|
|||||||
(Unaudited)
|
||||||||
Revenues:
|
||||||||
Insurance and Other:
|
||||||||
Insurance premiums earned
|
$ | 8,065 | $ | 7,482 | ||||
Sales and service revenues
|
19,264 | 16,772 | ||||||
Interest, dividend and other investment income
|
1,067 | 1,277 | ||||||
Investment gains/losses
|
230 | 86 | ||||||
Other-than-temporary impairment losses on investments
|
(337 | ) | (506 | ) | ||||
28,289 | 25,111 | |||||||
Railroad, Utilities and Energy:
|
||||||||
Operating revenues
|
7,849 | 7,377 | ||||||
Other
|
47 | 36 | ||||||
7,896 | 7,413 | |||||||
Finance and Financial Products:
|
||||||||
Interest, dividend and other investment income
|
375 | 398 | ||||||
Investment gains/losses
|
1 | 13 | ||||||
Derivative gains/losses
|
1,002 | 271 | ||||||
Other
|
584 | 514 | ||||||
1,962 | 1,196 | |||||||
38,147 | 33,720 | |||||||
Costs and expenses:
|
||||||||
Insurance and Other:
|
||||||||
Insurance losses and loss adjustment expenses
|
4,771 | 6,018 | ||||||
Life, annuity and health insurance benefits
|
1,092 | 1,015 | ||||||
Insurance underwriting expenses
|
2,117 | 1,725 | ||||||
Cost of sales and services
|
15,596 | 13,859 | ||||||
Selling, general and administrative expenses
|
2,428 | 2,035 | ||||||
Interest expense
|
103 | 67 | ||||||
26,107 | 24,719 | |||||||
Railroad, Utilities and Energy:
|
||||||||
Cost of sales and operating expenses
|
5,870 | 5,572 | ||||||
Interest expense
|
428 | 425 | ||||||
6,298 | 5,997 | |||||||
Finance and Financial Products:
|
||||||||
Interest expense
|
160 | 166 | ||||||
Other
|
651 | 604 | ||||||
811 | 770 | |||||||
33,216 | 31,486 | |||||||
Earnings before income taxes
|
4,931 | 2,234 | ||||||
Income tax expense
|
1,565 | 629 | ||||||
Net earnings
|
3,366 | 1,605 | ||||||
Less: Earnings attributable to noncontrolling interests
|
121 | 94 | ||||||
Net earnings attributable to Berkshire Hathaway
|
$ | 3,245 | $ | 1,511 | ||||
Average common shares outstanding *
|
1,650,944 | 1,648,411 | ||||||
Net earnings per share attributable to Berkshire Hathaway shareholders *
|
$ | 1,966 | $ | 917 |
*
|
Average shares outstanding include average Class A common shares and average Class B common shares determined on an equivalent Class A common stock basis. Net earnings per common share attributable to Berkshire Hathaway shown above represents net earnings per equivalent Class A common share. Net earnings per Class B common share is equal to one-fifteen-hundredth (1/1,500) of such amount.
|
First Quarter
|
||||||||
2012
|
2011
|
|||||||
Comprehensive income attributable to Berkshire Hathaway:
|
||||||||
Net earnings
|
$ | 3,245 | $ | 1,511 | ||||
Other comprehensive income:
|
||||||||
Net change in unrealized appreciation of investments
|
11,642 | 652 | ||||||
Applicable income taxes
|
(4,051 | ) | (217 | ) | ||||
Reclassification of investment appreciation in earnings
|
132 | 433 | ||||||
Applicable income taxes
|
(46 | ) | (152 | ) | ||||
Foreign currency translation
|
219 | 439 | ||||||
Applicable income taxes
|
1 | (13 | ) | |||||
Prior service cost and actuarial gains/losses of defined benefit plans
|
12 | (4 | ) | |||||
Applicable income taxes
|
(6 | ) | — | |||||
Other, net
|
(40 | ) | 47 | |||||
Other comprehensive income, net
|
7,863 | 1,185 | ||||||
Comprehensive income attributable to Berkshire Hathaway
|
$ | 11,108 | $ | 2,696 | ||||
Comprehensive income of noncontrolling interests
|
$ | 141 | $ | 99 |
Berkshire Hathaway shareholders’ equity | ||||||||||||||||||||||||
Common stock and capital in excess of par value | Accumulated other comprehensive income | Retained earnings | Treasury stock | Total | Non-controlling interests | |||||||||||||||||||
Balance at December 31, 2010
|
$ | 37,541 | $ | 20,583 | $ | 99,194 | $ | — | $ | 157,318 | $ | 5,616 | ||||||||||||
Net earnings
|
— | — | 1,511 | — | 1,511 | 94 | ||||||||||||||||||
Other comprehensive income, net
|
— | 1,185 | — | — | 1,185 | 5 | ||||||||||||||||||
Issuance of common stock and other transactions
|
58 | — | — | — | 58 | — | ||||||||||||||||||
Changes in noncontrolling interests:
|
||||||||||||||||||||||||
Interests acquired and other transactions
|
(13 | ) | (4 | ) | — | — | (17 | ) | (1,505 | ) | ||||||||||||||
Balance at March 31, 2011
|
$ | 37,586 | $ | 21,764 | $ | 100,705 | $ | — | $ | 160,055 | $ | 4,210 | ||||||||||||
Balance at December 31, 2011
|
$ | 37,815 | $ | 17,654 | $ | 109,448 | $ | (67 | ) | $ | 164,850 | $ | 4,111 | |||||||||||
Net earnings
|
— | — | 3,245 | — | 3,245 | 121 | ||||||||||||||||||
Other comprehensive income, net
|
— | 7,863 | — | — | 7,863 | 20 | ||||||||||||||||||
Issuance of common stock and other transactions
|
39 | — | — | — | 39 | — | ||||||||||||||||||
Changes in noncontrolling interests:
|
||||||||||||||||||||||||
Interests acquired and other transactions
|
— | — | — | — | — | 20 | ||||||||||||||||||
Balance at March 31, 2012
|
$ | 37,854 | $ | 25,517 | $ | 112,693 | $ | (67 | ) | $ | 175,997 | $ | 4,272 |
First Quarter
|
||||||||
2012
|
2011
|
|||||||
(Unaudited)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$ | 3,366 | $ | 1,605 | ||||
Adjustments to reconcile net earnings to operating cash flows:
|
||||||||
Investment (gains) losses and other-than-temporary impairment losses
|
106 | 407 | ||||||
Depreciation
|
1,253 | 1,135 | ||||||
Other
|
262 | 121 | ||||||
Changes in operating assets and liabilities before business acquisitions:
|
||||||||
Losses and loss adjustment expenses
|
(299 | ) | 1,814 | |||||
Deferred charges reinsurance assumed
|
103 | 50 | ||||||
Unearned premiums
|
2,078 | 1,669 | ||||||
Receivables and originated loans
|
(2,043 | ) | (2,737 | ) | ||||
Derivative contract assets and liabilities
|
(1,061 | ) | (281 | ) | ||||
Income taxes
|
1,048 | 182 | ||||||
Other assets
|
(228 | ) | (1,123 | ) | ||||
Other liabilities
|
65 | 660 | ||||||
Net cash flows from operating activities
|
4,650 | 3,502 | ||||||
Cash flows from investing activities:
|
||||||||
Purchases of fixed maturity securities
|
(2,080 | ) | (1,452 | ) | ||||
Purchases of equity securities
|
(3,424 | ) | (834 | ) | ||||
Sales of fixed maturity securities
|
1,068 | 867 | ||||||
Redemptions and maturities of fixed maturity securities
|
1,307 | 1,665 | ||||||
Sales of equity securities
|
820 | 9 | ||||||
Redemptions of other investments
|
— | 3,845 | ||||||
Purchases of loans and finance receivables
|
(231 | ) | (1,037 | ) | ||||
Principal collections on loans and finance receivables
|
151 | 1,289 | ||||||
Acquisitions of businesses, net of cash acquired
|
(339 | ) | (131 | ) | ||||
Purchases of property, plant and equipment
|
(2,160 | ) | (1,482 | ) | ||||
Other
|
(653 | ) | 122 | |||||
Net cash flows from investing activities
|
(5,541 | ) | 2,861 | |||||
Cash flows from financing activities:
|
||||||||
Proceeds from borrowings of insurance and other businesses
|
1,736 | 37 | ||||||
Proceeds from borrowings of railroad, utilities and energy businesses
|
2,849 | 191 | ||||||
Proceeds from borrowings of finance businesses
|
1 | 1,525 | ||||||
Repayments of borrowings of insurance and other businesses
|
(1,791 | ) | (2,143 | ) | ||||
Repayments of borrowings of railroad, utilities and energy businesses
|
(160 | ) | (276 | ) | ||||
Repayments of borrowings of finance businesses
|
(333 | ) | (1,590 | ) | ||||
Change in short term borrowings, net
|
(904 | ) | 210 | |||||
Acquisitions of noncontrolling interests and other
|
(55 | ) | (1,513 | ) | ||||
Net cash flows from financing activities
|
1,343 | (3,559 | ) | |||||
Effects of foreign currency exchange rate changes
|
75 | 147 | ||||||
Increase in cash and cash equivalents
|
527 | 2,951 | ||||||
Cash and cash equivalents at beginning of year *
|
37,299 | 38,227 | ||||||
Cash and cash equivalents at end of first quarter *
|
$ | 37,826 | $ | 41,178 | ||||
* Cash and cash equivalents are comprised of the following:
|
||||||||
Beginning of year—
|
||||||||
Insurance and Other
|
$ | 33,513 | $ | 34,767 | ||||
Railroad, Utilities and Energy
|
2,246 | 2,557 | ||||||
Finance and Financial Products
|
1,540 | 903 | ||||||
$ | 37,299 | $ | 38,227 | |||||
End of first quarter—
|
||||||||
Insurance and Other
|
$ | 33,594 | $ | 38,401 | ||||
Railroad, Utilities and Energy
|
2,658 | 2,157 | ||||||
Finance and Financial Products
|
1,574 | 620 | ||||||
$ | 37,826 | $ | 41,178 |
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
March 31, 2012
|
||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies
|
$ | 2,621 | $ | 34 | $ | (3 | ) | $ | 2,652 | |||||||
States, municipalities and political subdivisions
|
2,749 | 202 | — | 2,951 | ||||||||||||
Foreign governments
|
10,738 | 281 | (28 | ) | 10,991 | |||||||||||
Corporate bonds
|
10,772 | 1,713 | (188 | ) | 12,297 | |||||||||||
Mortgage-backed securities
|
2,479 | 340 | (12 | ) | 2,807 | |||||||||||
$ | 29,359 | $ | 2,570 | $ | (231 | ) | $ | 31,698 | ||||||||
December 31, 2011
|
||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies
|
$ | 2,894 | $ | 41 | $ | — | $ | 2,935 | ||||||||
States, municipalities and political subdivisions
|
2,862 | 208 | — | 3,070 | ||||||||||||
Foreign governments
|
10,608 | 283 | (48 | ) | 10,843 | |||||||||||
Corporate bonds
|
11,120 | 1,483 | (155 | ) | 12,448 | |||||||||||
Mortgage-backed securities
|
2,564 | 343 | (15 | ) | 2,892 | |||||||||||
$ | 30,048 | $ | 2,358 | $ | (218 | ) | $ | 32,188 |
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Insurance and other
|
$ | 30,750 | $ | 31,222 | ||||
Finance and financial products
|
948 | 966 | ||||||
$ | 31,698 | $ | 32,188 |
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
|
$ | 6,795 | $ | 13,800 | $ | 3,982 | $ | 2,303 | $ | 2,479 | $ | 29,359 | ||||||||||||
Fair value
|
6,952 | 14,536 | 4,633 | 2,770 | 2,807 | 31,698 |
Cost Basis
|
Unrealized
Gains
|
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
March 31, 2012
|
||||||||||||||||
Banks, insurance and finance
|
$ | 17,085 | $ | 13,892 | $ | (47 | ) | $ | 30,930 | |||||||
Consumer products
|
12,296 | 15,316 | (8 | ) | 27,604 | |||||||||||
Commercial, industrial and other
|
23,276 | 7,524 | (219 | ) | 30,581 | |||||||||||
$ | 52,657 | $ | 36,732 | $ | (274 | ) | $ | 89,115 | ||||||||
December 31, 2011
|
||||||||||||||||
Banks, insurance and finance
|
$ | 16,697 | $ | 9,480 | $ | (1,269 | ) | $ | 24,908 | |||||||
Consumer products
|
12,390 | 14,320 | — | 26,710 | ||||||||||||
Commercial, industrial and other
|
20,523 | 4,973 | (123 | ) | 25,373 | |||||||||||
$ | 49,610 | $ | 28,773 | $ | (1,392 | ) | $ | 76,991 |
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Insurance and other
|
$ | 87,993 | $ | 76,063 | ||||
Railroad, utilities and energy *
|
629 | 488 | ||||||
Finance and financial products *
|
493 | 440 | ||||||
$ | 89,115 | $ | 76,991 |
Cost
|
Net
Unrealized
Gains
|
Fair
Value
|
Carrying
Value
|
|||||||||||||
March 31, 2012
|
||||||||||||||||
Other fixed maturity and equity securities:
|
||||||||||||||||
Insurance and other
|
$ | 13,052 | $ | 2,939 | $ | 15,991 | $ | 14,986 | ||||||||
Finance and financial products
|
3,198 | 1,237 | 4,435 | 4,425 | ||||||||||||
$ | 16,250 | $ | 4,176 | $ | 20,426 | $ | 19,411 | |||||||||
December 31, 2011
|
||||||||||||||||
Other fixed maturity and equity securities:
|
||||||||||||||||
Insurance and other
|
$ | 13,051 | $ | 1,055 | $ | 14,106 | $ | 13,111 | ||||||||
Finance and financial products
|
3,198 | 623 | 3,821 | 3,810 | ||||||||||||
$ | 16,249 | $ | 1,678 | $ | 17,927 | $ | 16,921 |
First Quarter
|
||||||||
2012
|
2011
|
|||||||
Fixed maturity securities —
|
||||||||
Gross gains from sales and other disposals
|
$ | 33 | $ | 82 | ||||
Gross losses from sales and other disposals
|
(16 | ) | — | |||||
Equity securities —
|
||||||||
Gross gains from sales and other disposals
|
188 | 1 | ||||||
Gross losses from sales and other disposals
|
— | (10 | ) | |||||
Other
|
26 | 26 | ||||||
$ | 231 | $ | 99 |
Insurance and other
|
$ | 230 | $ | 86 | ||||
Finance and financial products
|
1 | 13 | ||||||
$ | 231 | $ | 99 |
First Quarter
|
||||||||
2012
|
2011
|
|||||||
Equity securities
|
$ | — | $ | 506 | ||||
Fixed maturity securities
|
337 | — | ||||||
$ | 337 | $ | 506 |
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Insurance premiums receivable
|
$ | 8,354 | $ | 6,663 | ||||
Reinsurance recoverable on unpaid losses
|
2,899 | 2,953 | ||||||
Trade and other receivables
|
10,486 | 9,772 | ||||||
Allowances for uncollectible accounts
|
(373 | ) | (376 | ) | ||||
$ | 21,366 | $ | 19,012 |
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Consumer installment loans and finance receivables
|
$ | 13,240 | $ | 13,463 | ||||
Commercial loans and finance receivables
|
945 | 860 | ||||||
Allowances for uncollectible loans
|
(386 | ) | (389 | ) | ||||
$ | 13,799 | $ | 13,934 |
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Raw materials
|
$ | 1,687 | $ | 1,598 | ||||
Work in process and other
|
916 | 897 | ||||||
Finished manufactured goods
|
3,234 | 3,114 | ||||||
Goods acquired for resale
|
3,218 | 3,366 | ||||||
$ | 9,055 | $ | 8,975 |
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Balance at beginning of year
|
$ | 53,213 | $ | 49,006 | ||||
Acquisitions of businesses
|
77 | 4,179 | ||||||
Other
|
(124 | ) | 28 | |||||
Balance at end of period
|
$ | 53,166 | $ | 53,213 |
March 31, 2012
|
December 31, 2011
|
|||||||||||||||
Gross carrying
amount
|
Accumulated
amortization
|
Gross carrying
amount
|
Accumulated
amortization
|
|||||||||||||
Insurance and other
|
$ | 11,111 | $ | 2,494 | $ | 11,016 | $ | 2,319 | ||||||||
Railroad, utilities and energy
|
2,096 | 705 | 2,088 | 623 | ||||||||||||
$ | 13,207 | $ | 3,199 | $ | 13,104 | $ | 2,942 | |||||||||
Trademarks and trade names
|
$ | 2,676 | $ | 234 | $ | 2,655 | $ | 219 | ||||||||
Patents and technology
|
4,934 | 1,641 | 4,900 | 1,496 | ||||||||||||
Customer relationships
|
4,113 | 915 | 4,060 | 840 | ||||||||||||
Other
|
1,484 | 409 | 1,489 | 387 | ||||||||||||
$ | 13,207 | $ | 3,199 | $ | 13,104 | $ | 2,942 |
Ranges of
estimated useful life
|
March 31,
2012
|
December 31,
2011
|
||||||||||
Land
|
— | $ | 942 | $ | 940 | |||||||
Buildings and improvements
|
3 – 40 years
|
5,442 | 5,429 | |||||||||
Machinery and equipment
|
3 – 25 years
|
13,794 | 13,589 | |||||||||
Furniture, fixtures and other
|
2 – 20 years
|
2,562 | 2,397 | |||||||||
Assets held for lease
|
12 – 30 years
|
6,256 | 5,997 | |||||||||
28,996 | 28,352 | |||||||||||
Accumulated depreciation
|
(10,595 | ) | (10,175 | ) | ||||||||
$ | 18,401 | $ | 18,177 |
Ranges of
estimated useful life
|
March 31,
2012
|
December 31,
2011
|
||||||||||
Railroad:
|
||||||||||||
Land
|
— | $ | 5,929 | $ | 5,925 | |||||||
Track structure and other roadway
|
5 – 100 years
|
37,043 | 36,760 | |||||||||
Locomotives, freight cars and other equipment
|
5 – 37 years
|
5,820 | 5,533 | |||||||||
Construction in progress
|
— | 941 | 885 | |||||||||
Utilities and energy:
|
||||||||||||
Utility generation, distribution and transmission system
|
5 – 80 years
|
40,608 | 40,180 | |||||||||
Interstate pipeline assets
|
3 – 80 years
|
6,253 | 6,245 | |||||||||
Independent power plants and other assets
|
3 – 30 years
|
1,114 | 1,106 | |||||||||
Construction in progress
|
— | 2,045 | 1,559 | |||||||||
99,753 | 98,193 | |||||||||||
Accumulated depreciation
|
(16,427 | ) | (15,979 | ) | ||||||||
$ | 83,326 | $ | 82,214 |
March 31, 2012
|
December 31, 2011
|
|||||||||||||||||||||||
Assets (3)
|
Liabilities
|
Notional
Value
|
Assets (3)
|
Liabilities
|
Notional
Value
|
|||||||||||||||||||
Equity index put options
|
$ | — | $ | 7,810 | $ | 33,806 | (1) | $ | — | $ | 8,499 | $ | 34,014 | (1) | ||||||||||
Credit default contracts:
|
||||||||||||||||||||||||
High yield indexes
|
— | 107 | 4,512 | (2) | — | 198 | 4,568 | (2) | ||||||||||||||||
States/municipalities
|
— | 1,025 | 16,042 | (2) | — | 1,297 | 16,042 | (2) | ||||||||||||||||
Individual corporate
|
46 | — | 3,565 | (2) | 55 | 32 | 3,565 | (2) | ||||||||||||||||
Other
|
240 | 149 | 268 | 156 | ||||||||||||||||||||
Counterparty netting
|
(54 | ) | (36 | ) | (67 | ) | (43 | ) | ||||||||||||||||
$ | 232 | $ | 9,055 | $ | 256 | $ | 10,139 |
(1)
|
Represents the aggregate undiscounted amount payable at the contract expiration dates assuming that the value of each index is zero at the contract expiration date.
|
(2)
|
Represents the maximum undiscounted future value of losses payable under the contracts. The number of losses required to exhaust contract limits under substantially all of the contracts is dependent on the loss recovery rate related to the specific obligor at the time of a default.
|
(3)
|
Included in other assets of finance and financial products businesses.
|
First Quarter | ||||||||
2012 | 2011 | |||||||
Equity index put options
|
$ | 689 | $ | 223 | ||||
Credit default obligations
|
340 | 70 | ||||||
Other
|
(27 | ) | (22 | ) | ||||
$ | 1,002 | $ | 271 |
First Quarter
|
||||||||
2012
|
2011
|
|||||||
Cash paid during the period for:
|
||||||||
Income taxes
|
$ | 199 | $ | 231 | ||||
Interest:
|
||||||||
Interest of insurance and other businesses
|
138 | 79 | ||||||
Interest of railroad, utilities and energy businesses
|
465 | 482 | ||||||
Interest of finance and financial products businesses
|
158 | 174 | ||||||
Non-cash investing and financing activities:
|
||||||||
Liabilities assumed in connection with acquisitions
|
54 | 78 |
Weighted
Average
Interest Rate
|
March 31,
2012
|
December 31,
2011
|
||||||||||
Insurance and other:
|
||||||||||||
Issued by Berkshire parent company due 2012-2047
|
2.3 | % | $ | 8,320 | $ | 8,287 | ||||||
Short-term subsidiary borrowings
|
0.2 | % | 1,404 | 1,490 | ||||||||
Other subsidiary borrowings due 2012-2035
|
5.9 | % | 3,911 | 3,991 | ||||||||
$ | 13,635 | $ | 13,768 |
Weighted
Average
Interest Rate
|
March 31,
2012
|
December 31,
2011
|
||||||||||
Railroad, utilities and energy:
|
||||||||||||
Issued by MidAmerican Energy Holdings Company (“MidAmerican”) and its subsidiaries:
|
||||||||||||
MidAmerican senior unsecured debt due 2012-2037
|
6.1 | % | $ | 5,363 | $ | 5,363 | ||||||
Subsidiary and other debt due 2012-2042
|
5.4 | % | 15,335 | 14,552 | ||||||||
Issued by BNSF due 2012-2097
|
5.7 | % | 13,825 | 12,665 | ||||||||
$ | 34,523 | $ | 32,580 |
Weighted
Average
Interest Rate
|
March 31,
2012
|
December 31,
2011
|
||||||||||
Finance and financial products:
|
||||||||||||
Issued by Berkshire Hathaway Finance Corporation (“BHFC”) due 2012-2040
|
4.5 | % | $ | 11,281 | $ | 11,531 | ||||||
Issued by other subsidiaries due 2012-2036
|
4.8 | % | 2,396 | 2,505 | ||||||||
$ | 13,677 | $ | 14,036 |
Class A, $5 Par Value
(1,650,000 shares authorized)
|
Class B, $0.0033 Par Value
(3,225,000,000 shares authorized)
|
|||||||||||||||||||||||
Issued
|
Treasury
|
Outstanding
|
Issued
|
Treasury
|
Outstanding
|
|||||||||||||||||||
Balance at December 31, 2011
|
938,342 | (98 | ) | 938,244 | 1,069,645,361 | (801,985 | ) | 1,068,843,376 | ||||||||||||||||
Conversions of Class A common stock to Class B common stock and exercises of replacement stock options issued in a business acquisition
|
(5,630 | ) | — | (5,630 | ) | 9,029,871 | — | 9,029,871 | ||||||||||||||||
Balance at March 31, 2012
|
932,712 | (98 | ) | 932,614 | 1,078,675,232 | (801,985 | ) | 1,077,873,247 |
Carrying Value
|
Fair Value
|
|||||||||||||||
March 31,
|
December 31,
|
March 31,
|
December 31,
|
|||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Investments in fixed maturity securities
|
$ | 31,698 | $ | 32,188 | $ | 31,698 | $ | 32,188 | ||||||||
Investments in equity securities
|
89,115 | 76,991 | 89,115 | 76,991 | ||||||||||||
Other investments
|
19,411 | 16,921 | 20,426 | 17,927 | ||||||||||||
Loans and finance receivables
|
13,799 | 13,934 | 13,016 | 13,126 | ||||||||||||
Derivative contract assets (1)
|
293 | 327 | 293 | 327 | ||||||||||||
Notes payable and other borrowings:
|
||||||||||||||||
Insurance and other
|
13,635 | 13,768 | 14,186 | 14,334 | ||||||||||||
Railroad, utilities and energy
|
34,523 | 32,580 | 38,697 | 38,257 | ||||||||||||
Finance and financial products
|
13,677 | 14,036 | 14,549 | 14,959 | ||||||||||||
Derivative contract liabilities:
|
||||||||||||||||
Railroad, utilities and energy (2)
|
472 | 336 | 472 | 336 | ||||||||||||
Finance and financial products
|
9,055 | 10,139 | 9,055 | 10,139 |
(1)
|
Included in other assets
|
(2)
|
Included in accounts payable, accruals and other liabilities
|
Total
Fair Value
|
Quoted
Prices
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable Inputs
(Level 3)
|
|||||||||||||
March 31, 2012
|
||||||||||||||||
Investments in fixed maturity securities:
|
||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies
|
$ | 2,652 | $ | 1,022 | $ | 1,628 | $ | 2 | ||||||||
States, municipalities and political subdivisions
|
2,951 | — | 2,950 | 1 | ||||||||||||
Foreign governments
|
10,991 | 4,582 | 6,409 | — | ||||||||||||
Corporate bonds
|
12,297 | — | 11,645 | 652 | ||||||||||||
Mortgage-backed securities
|
2,807 | — | 2,807 | — | ||||||||||||
Investments in equity securities
|
89,115 | 89,018 | 65 | 32 | ||||||||||||
Other investments
|
14,158 | — | — | 14,158 | ||||||||||||
Loans and finance receivables (1)
|
13,016 | — | 1,019 | 11,997 | ||||||||||||
Notes payable and other borrowings (1):
|
||||||||||||||||
Insurance and other
|
14,186 | — | 14,186 | — | ||||||||||||
Railroad, utilities and energy
|
38,697 | — | 38,697 | — | ||||||||||||
Finance and financial products
|
14,549 | — | 13,667 | 882 | ||||||||||||
Net derivative contract (assets)/liabilities:
|
||||||||||||||||
Railroad, utilities and energy
|
411 | 31 | 405 | (25 | ) | |||||||||||
Finance and financial products:
|
||||||||||||||||
Equity index put options
|
7,810 | — | — | 7,810 | ||||||||||||
Credit default obligations
|
1,086 | — | — | 1,086 | ||||||||||||
Other
|
(73 | ) | — | (51 | ) | (22 | ) |
(1)
|
Not carried at fair value in our financial statements.
|
Total
Fair Value
|
Quoted
Prices
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable Inputs
(Level 3)
|
|||||||||||||
December 31, 2011
|
||||||||||||||||
Investments in fixed maturity securities:
|
||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies
|
$ | 2,935 | $ | 843 | $ | 2,090 | $ | 2 | ||||||||
States, municipalities and political subdivisions
|
3,070 | — | 3,069 | 1 | ||||||||||||
Foreign governments
|
10,843 | 4,444 | 6,265 | 134 | ||||||||||||
Corporate bonds
|
12,448 | — | 11,801 | 647 | ||||||||||||
Mortgage-backed securities
|
2,892 | — | 2,892 | — | ||||||||||||
Investments in equity securities
|
76,991 | 76,906 | 63 | 22 | ||||||||||||
Other investments
|
11,669 | — | — | 11,669 | ||||||||||||
Net derivative contract (assets)/liabilities:
|
||||||||||||||||
Railroad, utilities and energy
|
265 | 12 | 276 | (23 | ) | |||||||||||
Finance and financial products:
|
||||||||||||||||
Equity index put options
|
8,499 | — | — | 8,499 | ||||||||||||
Credit default obligations
|
1,472 | — | — | 1,472 | ||||||||||||
Other
|
(88 | ) | — | (48 | ) | (40 | ) |
Investments
in fixed
maturity
securities
|
Investments
in equity
securities
|
Other
investments
|
Net
derivative
contract
(liabilities)
|
|||||||||||||
Balance at December 31, 2010
|
$ | 801 | $ | 35 | $ | 17,589 | $ | (8,222 | ) | |||||||
Gains (losses) included in:
|
||||||||||||||||
Earnings
|
— | — | — | 307 | ||||||||||||
Other comprehensive income
|
(3 | ) | 9 | (319 | ) | — | ||||||||||
Regulatory assets and liabilities
|
— | — | — | (13 | ) | |||||||||||
Dispositions
|
(31 | ) | — | — | — | |||||||||||
Settlements
|
— | — | — | (16 | ) | |||||||||||
Transfers out of Level 3
|
— | — | (5,500 | ) | — | |||||||||||
Balance at March 31, 2011
|
$ | 767 | $ | 44 | $ | 11,770 | $ | (7,944 | ) | |||||||
Balance at December 31, 2011
|
$ | 784 | $ | 22 | $ | 11,669 | $ | (9,908 | ) | |||||||
Gains (losses) included in:
|
||||||||||||||||
Earnings
|
— | (1 | ) | — | 1,022 | |||||||||||
Other comprehensive income
|
6 | 11 | 2,489 | (3 | ) | |||||||||||
Regulatory assets and liabilities
|
— | — | — | 9 | ||||||||||||
Dispositions
|
(6 | ) | — | — | — | |||||||||||
Settlements
|
— | — | — | 31 | ||||||||||||
Transfers out of Level 3
|
(129 | ) | — | — | — | |||||||||||
Balance at March 31, 2012
|
$ | 655 | $ | 32 | $ | 14,158 | $ | (8,849 | ) |
Fair value
|
Principal valuation
techniques
|
Unobservable Input
|
Weighted Average
|
|||||||
Other investments:
|
||||||||||
Preferred stocks
|
$ | 11,307 |
Discounted cash flow
|
Expected duration
|
10 years
|
|||||
Discount for transferability restrictions and subordination
|
97 Bps
|
|||||||||
Common stock warrants
|
2,851 |
Warrant pricing model
|
Discount for transferability and hedging restrictions
|
18% | ||||||
Net derivative liabilities:
|
||||||||||
Equity index put options
|
7,810 |
Option pricing model
|
Volatility
|
22% | ||||||
Credit default-states/municipalities
|
1,025 |
Discounted cash flow
|
Credit default spreads
|
120 Bps
|
First Quarter
|
||||||||
2012
|
2011
|
|||||||
Operating Businesses:
|
||||||||
Insurance group:
|
||||||||
Premiums earned:
|
||||||||
GEICO
|
$ | 4,016 | $ | 3,675 | ||||
General Re
|
1,471 | 1,437 | ||||||
Berkshire Hathaway Reinsurance Group
|
2,071 | 1,944 | ||||||
Berkshire Hathaway Primary Group
|
507 | 426 | ||||||
Investment income
|
1,056 | 1,266 | ||||||
Total insurance group
|
9,121 | 8,748 | ||||||
BNSF
|
5,002 | 4,533 | ||||||
Finance and financial products
|
959 | 913 | ||||||
Marmon
|
1,793 | 1,674 | ||||||
McLane Company
|
8,073 | 7,767 | ||||||
MidAmerican
|
2,894 | 2,880 | ||||||
Other businesses *
|
9,296 | 7,208 | ||||||
37,138 | 33,723 | |||||||
Reconciliation of segments to consolidated amount:
|
||||||||
Investment and derivative gains/losses
|
896 | (136 | ) | |||||
Eliminations and other
|
113 | 133 | ||||||
$ | 38,147 | $ | 33,720 |
First Quarter
|
||||||||
2012
|
2011
|
|||||||
Operating Businesses:
|
||||||||
Insurance group:
|
||||||||
Underwriting gain (loss):
|
||||||||
GEICO
|
$ | 124 | $ | 337 | ||||
General Re
|
81 | (326 | ) | |||||
Berkshire Hathaway Reinsurance Group
|
(191 | ) | (1,343 | ) | ||||
Berkshire Hathaway Primary Group
|
71 | 56 | ||||||
Net investment income
|
1,052 | 1,261 | ||||||
Total insurance group
|
1,137 | (15 | ) | |||||
BNSF
|
1,115 | 965 | ||||||
Finance and financial products
|
163 | 156 | ||||||
Marmon
|
269 | 222 | ||||||
McLane Company
|
102 | 82 | ||||||
MidAmerican
|
483 | 451 | ||||||
Other businesses *
|
1,069 | 675 | ||||||
4,338 | 2,536 | |||||||
Reconciliation of segments to consolidated amount:
|
||||||||
Investment and derivative gains/losses
|
896 | (136 | ) | |||||
Interest expense, excluding interest allocated to operating businesses
|
(66 | ) | (51 | ) | ||||
Eliminations and other
|
(237 | ) | (115 | ) | ||||
$ | 4,931 | $ | 2,234 |
*
|
Includes Lubrizol in 2012.
|
First Quarter
|
||||||||
2012
|
2011
|
|||||||
Insurance – underwriting
|
$ | 54 | $ | (821 | ) | |||
Insurance – investment income
|
791 | 952 | ||||||
Railroad
|
701 | 607 | ||||||
Utilities and energy
|
338 | 301 | ||||||
Manufacturing, service and retailing *
|
854 | 558 | ||||||
Finance and financial products
|
104 | 96 | ||||||
Other
|
(177 | ) | (100 | ) | ||||
Investment and derivative gains/losses
|
580 | (82 | ) | |||||
Net earnings attributable to Berkshire
|
$ | 3,245 | $ | 1,511 |
*
|
Includes Lubrizol in 2012.
|
First Quarter
|
||||||||
2012
|
2011
|
|||||||
Underwriting gain (loss) attributable to:
|
||||||||
GEICO
|
$ | 124 | $ | 337 | ||||
General Re
|
81 | (326 | ) | |||||
Berkshire Hathaway Reinsurance Group
|
(191 | ) | (1,343 | ) | ||||
Berkshire Hathaway Primary Group
|
71 | 56 | ||||||
Pre-tax underwriting gain (loss)
|
85 | (1,276 | ) | |||||
Income taxes and noncontrolling interests
|
31 | (455 | ) | |||||
Net underwriting gain (loss)
|
$ | 54 | $ | (821 | ) |
First Quarter
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Amount
|
%
|
Amount
|
%
|
|||||||||||||
Premiums earned
|
$ | 4,016 | 100.0 | $ | 3,675 | 100.0 | ||||||||||
Losses and loss adjustment expenses
|
2,933 | 73.0 | 2,653 | 72.2 | ||||||||||||
Underwriting expenses
|
959 | 23.9 | 685 | 18.6 | ||||||||||||
Total losses and expenses
|
3,892 | 96.9 | 3,338 | 90.8 | ||||||||||||
Pre-tax underwriting gain
|
$ | 124 | $ | 337 |
First Quarter
|
||||||||||||||||
Premiums earned
|
Pre-tax underwriting gain (loss)
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Property/casualty
|
$ | 735 | $ | 715 | $ | 46 | $ | (324 | ) | |||||||
Life/health
|
736 | 722 | 35 | (2 | ) | |||||||||||
$ | 1,471 | $ | 1,437 | $ | 81 | $ | (326 | ) |
First Quarter
|
||||||||||||||||
Premiums earned
|
Pre-tax underwriting gain (loss)
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Catastrophe and individual risk
|
$ | 134 | $ | 189 | $ | 82 | $ | (273 | ) | |||||||
Retroactive reinsurance
|
298 | 143 | (73 | ) | (155 | ) | ||||||||||
Other multi-line property/casualty
|
1,125 | 1,133 | (130 | ) | (910 | ) | ||||||||||
Life and annuity
|
514 | 479 | (70 | ) | (5 | ) | ||||||||||
$ | 2,071 | $ | 1,944 | $ | (191 | ) | $ | (1,343 | ) |
First Quarter
|
||||||||
2012
|
2011
|
|||||||
Investment income before income taxes and noncontrolling interests
|
$ | 1,052 | $ | 1,261 | ||||
Income taxes and noncontrolling interests
|
261 | 309 | ||||||
Net investment income
|
$ | 791 | $ | 952 |
March 31,
|
Dec. 31,
|
|||||||
2012
|
2011
|
|||||||
Cash and cash equivalents
|
$ | 21,082 | $ | 21,571 | ||||
Equity securities
|
87,625 | 75,759 | ||||||
Fixed maturity securities
|
29,407 | 29,899 | ||||||
Other
|
14,986 | 13,111 | ||||||
$ | 153,100 | $ | 140,340 |
Amortized
cost
|
Unrealized
gains/losses
|
Fair
value
|
||||||||||
U.S. Treasury, U.S. government corporations and agencies
|
$ | 2,621 | $ | 31 | $ | 2,652 | ||||||
States, municipalities and political subdivisions
|
2,749 | 202 | 2,951 | |||||||||
Foreign governments
|
9,479 | 253 | 9,732 | |||||||||
Corporate bonds, investment grade
|
5,093 | 741 | 5,834 | |||||||||
Corporate bonds, non-investment grade
|
5,082 | 742 | 5,824 | |||||||||
Mortgage-backed securities
|
2,134 | 280 | 2,414 | |||||||||
$ | 27,158 | $ | 2,249 | $ | 29,407 |
First Quarter
|
||||||||
2012
|
2011
|
|||||||
Revenues
|
$ | 5,002 | $ | 4,533 | ||||
Operating expenses
|
3,739 | 3,432 | ||||||
Interest expense
|
148 | 136 | ||||||
3,887 | 3,568 | |||||||
Pre-tax earnings
|
1,115 | 965 | ||||||
Income taxes
|
414 | 358 | ||||||
Net earnings
|
$ | 701 | $ | 607 |
First Quarter
|
||||||||||||||||
Revenues
|
Earnings
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
PacifiCorp
|
$ | 1,209 | $ | 1,132 | $ | 208 | $ | 190 | ||||||||
MidAmerican Energy Company
|
881 | 985 | 56 | 71 | ||||||||||||
Natural gas pipelines
|
302 | 297 | 160 | 155 | ||||||||||||
Northern Powergrid
|
263 | 253 | 124 | 122 | ||||||||||||
Real estate brokerage
|
213 | 191 | (1 | ) | (10 | ) | ||||||||||
Other
|
26 | 22 | 18 | 3 | ||||||||||||
$ | 2,894 | $ | 2,880 | |||||||||||||
Earnings before corporate interest and income taxes
|
565 | 531 | ||||||||||||||
Corporate interest
|
(82 | ) | (80 | ) | ||||||||||||
Interest on Berkshire junior debt
|
— | (5 | ) | |||||||||||||
Income taxes and noncontrolling interests
|
(108 | ) | (115 | ) | ||||||||||||
Net earnings
|
$ | 375 | $ | 331 | ||||||||||||
Earnings attributable to Berkshire *
|
$ | 338 | $ | 301 | ||||||||||||
Debt owed to others at March 31
|
20,698 | 19,882 | ||||||||||||||
Debt owed to Berkshire at March 31
|
— | 165 |
*
|
Net of noncontrolling interests and includes interest earned by Berkshire (net of related income taxes).
|
First Quarter
|
||||||||||||||||
Revenues
|
Earnings
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Marmon
|
$ | 1,793 | $ | 1,674 | $ | 269 | $ | 222 | ||||||||
McLane Company
|
8,073 | 7,767 | 102 | 82 | ||||||||||||
Other manufacturing
|
6,504 | 4,553 | 815 | 444 | ||||||||||||
Other service
|
2,047 | 1,968 | 205 | 200 | ||||||||||||
Retailing
|
745 | 687 | 49 | 31 | ||||||||||||
$ | 19,162 | $ | 16,649 | |||||||||||||
Pre-tax earnings
|
1,440 | 979 | ||||||||||||||
Income taxes and noncontrolling interests
|
586 | 421 | ||||||||||||||
$ | 854 | $ | 558 |
First Quarter
|
||||||||||||||||
Revenues
|
Earnings
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Manufactured housing and finance
|
$ | 718 | $ | 671 | $ | 40 | $ | 32 | ||||||||
Furniture/transportation equipment leasing
|
176 | 169 | 26 | 21 | ||||||||||||
Other
|
65 | 73 | 97 | 103 | ||||||||||||
$ | 959 | $ | 913 | |||||||||||||
Pre-tax earnings
|
163 | 156 | ||||||||||||||
Income taxes and noncontrolling interests
|
59 | 60 | ||||||||||||||
$ | 104 | $ | 96 |
First Quarter
|
||||||||
2012
|
2011
|
|||||||
Investment gains/losses
|
$ | 231 | $ | 99 | ||||
Other-than-temporary impairment losses on investments
|
(337 | ) | (506 | ) | ||||
Derivative gains/losses
|
1,002 | 271 | ||||||
Gains/losses before income taxes and noncontrolling interests
|
896 | (136 | ) | |||||
Income taxes and noncontrolling interests
|
316 | (54 | ) | |||||
Net gains/losses
|
$ | 580 | $ | (82 | ) |
|
12
|
Calculation of Ratio of Consolidated Earnings to Consolidated Fixed Charges
|
|
31.1
|
Rule 13a-14(a)/15d-14(a) Certifications
|
|
31.2
|
Rule 13a-14(a)/15d-14(a) Certifications
|
|
32.1
|
Section 1350 Certifications
|
|
32.2
|
Section 1350 Certifications
|
|
95
|
Mine Safety Disclosures
|
|
101
|
The following financial information from Berkshire Hathaway Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, formatted in XBRL (Extensible Business Reporting Language) includes: (i) the Consolidated Balance Sheets as of March 31, 2012 and December 31, 2011, (ii) the Consolidated Statements of Earnings for each of the three-month periods ended March 31, 2012 and 2011, (iii) the Consolidated Statements of Comprehensive Income for each of the three-month periods ended March 31, 2012 and 2011, (iv) the Consolidated Statements of Changes in Shareholders’ Equity for each of the three-month periods ended March 31, 2012 and 2011, (v) the Consolidated Statements of Cash Flows for each of the three-month periods ended March 31, 2012 and 2011, and (vi) the Notes to Consolidated Financial Statements, tagged in summary and detail.
|
BERKSHIRE HATHAWAY INC.
|
|
(Registrant)
|
|
Date: May 4, 2012
|
/S/ MARC D. HAMBURG
|
(Signature)
|
|
Marc D. Hamburg,
Senior Vice President and
Principal Financial Officer
|
Three Months Ended |
Year Ended December 31,
|
|||||||||||||||||||||||
March 31, 2012 |
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||||||
Net earnings attributable to Berkshire Hathaway
|
$ | 3,245 | $ | 10,254 | $ | 12,967 | $ | 8,055 | $ | 4,994 | $ | 13,213 | ||||||||||||
Income tax expense
|
1,565 | 4,568 | 5,607 | 3,538 | 1,978 | 6,594 | ||||||||||||||||||
Earnings attributable to noncontrolling interests
|
121 | 492 | 527 | 386 | 602 | 354 | ||||||||||||||||||
Earnings from equity method investments
|
— | — | (50 | ) | (427 | ) | — | — | ||||||||||||||||
Dividends from equity method investees
|
— | — | 20 | 132 | — | — | ||||||||||||||||||
Fixed charges
|
823 | 3,219 | 3,084 | 2,279 | 2,276 | 2,202 | ||||||||||||||||||
Earnings available for fixed charges
|
$ | 5,754 | $ | 18,533 | $ | 22,155 | $ | 13,963 | $ | 9,850 | $ | 22,363 | ||||||||||||
Fixed charges
|
||||||||||||||||||||||||
Interest on indebtedness (including amortization of debt discount and expense)
|
$ | 691 | $ | 2,664 | $ | 2,558 | $ | 1,992 | $ | 1,963 | $ | 1,910 | ||||||||||||
Rentals representing interest and other
|
132 | 555 | 526 | 287 | 313 | 292 | ||||||||||||||||||
$ | 823 | $ | 3,219 | $ | 3,084 | $ | 2,279 | $ | 2,276 | $ | 2,202 | |||||||||||||
Ratio of earnings to fixed charges
|
6.99 | x | 5.76 | x | 7.18 | x | 6.13 | x | 4.33 | x | 10.16 | x |
1.
|
I have reviewed this quarterly report on Form 10-Q of Berkshire Hathaway Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/S/ WARREN E. BUFFETT
|
Chairman—Principal Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Berkshire Hathaway Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/S/ MARC D. HAMBURG
|
Senior Vice President—Principal Financial Officer
|
(1)
|
the Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/S/ WARREN E. BUFFETT
|
Warren E. Buffett
|
Chairman and Chief Executive Officer
|
(1)
|
the Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/S/ MARC D. HAMBURG
|
Marc D. Hamburg
|
Senior Vice President and Chief Financial Officer
|
Mine Safety Act
|
Legal Actions
|
||||||||||||||||||||
Total
|
|||||||||||||||||||||
Section
|
Value of
|
||||||||||||||||||||
Section 104
|
Section
|
107(a)
|
Proposed
|
||||||||||||||||||
Significant and
|
104(d)
|
Imminent
|
MSHA
|
Instituted
|
Closed
|
||||||||||||||||
Substantial
|
Citations/
|
Danger
|
Assessments
|
During
|
During
|
||||||||||||||||
Mining Facilities
|
Citations(1)
|
Orders(2)
|
Orders(3)
|
(in thousands)
|
Pending(4)
|
Period
|
Period
|
||||||||||||||
Deer Creek
|
1
|
—
|
—
|
$15
|
9
|
1
|
4
|
||||||||||||||
Bridger (surface)
|
—
|
—
|
—
|
—
|
1
|
—
|
3
|
||||||||||||||
Bridger (underground)
|
11
|
2
|
1
|
17
|
16
|
4
|
5
|
||||||||||||||
Cottonwood Preparatory Plant
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||
Wyodak Coal Crushing Facility
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(1)
|
Citations for alleged violations of mandatory health and safety standards that could significantly or substantially contribute to the cause and effect of a safety or health hazard under Section 104 of the Mine Safety Act.
|
(2)
|
For an alleged unwarrantable failure (i.e., aggravated conduct constituting more than ordinary negligence) to comply with a mining safety standard or regulation.
|
(3)
|
For the existence of any condition or practice in a coal or other mine which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated. On March 20, 2012, Bridger received an imminent danger order under Section 107(a) of the Mine Safety Act at its underground mine located near Rock Springs, Wyoming. The order was reconsidered and subsequently vacated by MSHA.
|
(4)
|
Amounts are as of March 31, 2012 and (a) include contests of proposed penalties under Subpart C of the Federal Mine Safety and Health Review Commission's procedural rules and (b) are not exclusive to citations, notices, orders and penalties assessed by MSHA during the reporting period.
|
Business segment data (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of revenues and earnings by segment | Revenues
by segment for the first quarter of 2012 and 2011 were as follows
(in millions).
Earnings
before income taxes by segment for the first quarter of 2012 and
2011 were as follows (in millions).
|
Goodwill and other intangible assets (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2012
|
Dec. 31, 2011
|
|
Goodwill [Line Items] | ||
Balance at beginning of year | $ 53,213 | $ 49,006 |
Acquisitions of businesses | 77 | 4,179 |
Other | (124) | 28 |
Balance at end of period | $ 53,166 | $ 53,213 |
Investment gains/losses and other-than-temporary impairment losses on investments (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
|
Investment gains/losses [Line Items] | ||
Investment gains/losses | $ 231 | $ 99 |
Fixed Maturities [Member]
|
||
Investment gains/losses [Line Items] | ||
Gross gains from sales and other disposals | 33 | 82 |
Gross losses from sales and other disposals | (16) | |
Equity Securities and Other Investments [Member]
|
||
Investment gains/losses [Line Items] | ||
Gross gains from sales and other disposals | 188 | 1 |
Gross losses from sales and other disposals | (10) | |
Other Investment Gains / Losses [Member]
|
||
Investment gains/losses [Line Items] | ||
Investment gains/losses | 26 | 26 |
Insurance and Other [Member]
|
||
Investment gains/losses [Line Items] | ||
Investment gains/losses | 230 | 86 |
Finance and Financial Products [Member]
|
||
Investment gains/losses [Line Items] | ||
Investment gains/losses | $ 1 | $ 13 |
Other investments (Detail) (USD $)
In Millions, unless otherwise specified |
Mar. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Insurance and Other [Member]
|
||
Summary of Investment Holdings [Line Items] | ||
Carrying Value | $ 14,986 | $ 13,111 |
Finance and Financial Products [Member]
|
||
Summary of Investment Holdings [Line Items] | ||
Carrying Value | 4,425 | 3,810 |
Other Fixed Maturity and Equity Securities [Member]
|
||
Summary of Investment Holdings [Line Items] | ||
Cost | 16,250 | 16,249 |
Net Unrealized Gains | 4,176 | 1,678 |
Fair Value | 20,426 | 17,927 |
Carrying Value | 19,411 | 16,921 |
Other Fixed Maturity and Equity Securities [Member] | Insurance and Other [Member]
|
||
Summary of Investment Holdings [Line Items] | ||
Cost | 13,052 | 13,051 |
Net Unrealized Gains | 2,939 | 1,055 |
Fair Value | 15,991 | 14,106 |
Carrying Value | 14,986 | 13,111 |
Other Fixed Maturity and Equity Securities [Member] | Finance and Financial Products [Member]
|
||
Summary of Investment Holdings [Line Items] | ||
Cost | 3,198 | 3,198 |
Net Unrealized Gains | 1,237 | 623 |
Fair Value | 4,435 | 3,821 |
Carrying Value | $ 4,425 | $ 3,810 |
Property, plant and equipment (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance and Other [Member]
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment | Property,
plant and equipment of our insurance and other businesses is
comprised of the following (in millions).
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Railroad, Utilities and Energy [Member]
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment | Property,
plant and equipment of our railroad, utilities and energy
businesses is comprised of the following
(in millions).
|
Property, plant and equipment (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
Insurance and Other [Member]
|
Dec. 31, 2011
Insurance and Other [Member]
|
Mar. 31, 2012
Insurance and Other [Member]
Building and building improvements [Member]
|
Dec. 31, 2011
Insurance and Other [Member]
Building and building improvements [Member]
|
Mar. 31, 2012
Insurance and Other [Member]
Machinery and equipment [Member]
|
Dec. 31, 2011
Insurance and Other [Member]
Machinery and equipment [Member]
|
Mar. 31, 2012
Insurance and Other [Member]
Furniture, fixtures and other [Member]
|
Dec. 31, 2011
Insurance and Other [Member]
Furniture, fixtures and other [Member]
|
Mar. 31, 2012
Insurance and Other [Member]
Assets held for lease [Member]
|
Dec. 31, 2011
Insurance and Other [Member]
Assets held for lease [Member]
|
Mar. 31, 2012
Insurance and Other [Member]
Land [Member]
|
Dec. 31, 2011
Insurance and Other [Member]
Land [Member]
|
Mar. 31, 2012
Railroad [Member]
Land [Member]
|
Dec. 31, 2011
Railroad [Member]
Land [Member]
|
Mar. 31, 2012
Railroad [Member]
Track structure and other roadway [Member]
|
Dec. 31, 2011
Railroad [Member]
Track structure and other roadway [Member]
|
Mar. 31, 2012
Railroad [Member]
Locomotives, freight cars and other equipment [Member]
|
Dec. 31, 2011
Railroad [Member]
Locomotives, freight cars and other equipment [Member]
|
Mar. 31, 2012
Railroad [Member]
Construction in progress [Member]
|
Dec. 31, 2011
Railroad [Member]
Construction in progress [Member]
|
Mar. 31, 2012
Utilities and Energy [Member]
Utility generation, distribution and transmission system [Member]
|
Dec. 31, 2011
Utilities and Energy [Member]
Utility generation, distribution and transmission system [Member]
|
Mar. 31, 2012
Utilities and Energy [Member]
Interstate pipeline assets [Member]
|
Dec. 31, 2011
Utilities and Energy [Member]
Interstate pipeline assets [Member]
|
Mar. 31, 2012
Utilities and Energy [Member]
Independent power plants and other assets [Member]
|
Dec. 31, 2011
Utilities and Energy [Member]
Independent power plants and other assets [Member]
|
Mar. 31, 2012
Utilities and Energy [Member]
Construction in progress [Member]
|
Dec. 31, 2011
Utilities and Energy [Member]
Construction in progress [Member]
|
Mar. 31, 2012
Railroad, Utilities and Energy [Member]
|
Dec. 31, 2011
Railroad, Utilities and Energy [Member]
|
Mar. 31, 2012
Minimum [Member]
Insurance and Other [Member]
Building and building improvements [Member]
|
Mar. 31, 2012
Minimum [Member]
Insurance and Other [Member]
Machinery and equipment [Member]
|
Mar. 31, 2012
Minimum [Member]
Insurance and Other [Member]
Furniture, fixtures and other [Member]
|
Mar. 31, 2012
Minimum [Member]
Insurance and Other [Member]
Assets held for lease [Member]
|
Mar. 31, 2012
Minimum [Member]
Railroad [Member]
Track structure and other roadway [Member]
|
Mar. 31, 2012
Minimum [Member]
Railroad [Member]
Locomotives, freight cars and other equipment [Member]
|
Mar. 31, 2012
Minimum [Member]
Utilities and Energy [Member]
Utility generation, distribution and transmission system [Member]
|
Mar. 31, 2012
Minimum [Member]
Utilities and Energy [Member]
Interstate pipeline assets [Member]
|
Mar. 31, 2012
Minimum [Member]
Utilities and Energy [Member]
Independent power plants and other assets [Member]
|
Mar. 31, 2012
Maximum [Member]
Insurance and Other [Member]
Building and building improvements [Member]
|
Mar. 31, 2012
Maximum [Member]
Insurance and Other [Member]
Machinery and equipment [Member]
|
Mar. 31, 2012
Maximum [Member]
Insurance and Other [Member]
Furniture, fixtures and other [Member]
|
Mar. 31, 2012
Maximum [Member]
Insurance and Other [Member]
Assets held for lease [Member]
|
Mar. 31, 2012
Maximum [Member]
Railroad [Member]
Track structure and other roadway [Member]
|
Mar. 31, 2012
Maximum [Member]
Railroad [Member]
Locomotives, freight cars and other equipment [Member]
|
Mar. 31, 2012
Maximum [Member]
Utilities and Energy [Member]
Utility generation, distribution and transmission system [Member]
|
Mar. 31, 2012
Maximum [Member]
Utilities and Energy [Member]
Interstate pipeline assets [Member]
|
Mar. 31, 2012
Maximum [Member]
Utilities and Energy [Member]
Independent power plants and other assets [Member]
|
|
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment, gross | $ 28,996 | $ 28,352 | $ 5,442 | $ 5,429 | $ 13,794 | $ 13,589 | $ 2,562 | $ 2,397 | $ 6,256 | $ 5,997 | $ 942 | $ 940 | $ 5,929 | $ 5,925 | $ 37,043 | $ 36,760 | $ 5,820 | $ 5,533 | $ 941 | $ 885 | $ 40,608 | $ 40,180 | $ 6,253 | $ 6,245 | $ 1,114 | $ 1,106 | $ 2,045 | $ 1,559 | $ 99,753 | $ 98,193 | ||||||||||||||||||
Accumulated depreciation | (10,595) | (10,175) | (16,427) | (15,979) | ||||||||||||||||||||||||||||||||||||||||||||
Total Property, plant and equipment, net | $ 18,401 | $ 18,177 | $ 83,326 | $ 82,214 | ||||||||||||||||||||||||||||||||||||||||||||
Estimated useful life (in years) | 3 years | 3 years | 2 years | 12 years | 5 years | 5 years | 5 years | 3 years | 3 years | 40 years | 25 years | 20 years | 30 years | 100 years | 37 years | 80 years | 80 years | 30 years |
Fair value measurements - Other information (Detail) (Significant Unobservable Inputs (Level 3) [Member], USD $)
In Millions, unless otherwise specified |
3 Months Ended |
---|---|
Mar. 31, 2012
|
|
Net Derivative Contract Liabilities [Member] | Equity Index Put Options [Member] | Pricing Model, Option [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value, unobservable input, volatility | 22.00% |
Fair value of liability | $ 7,810 |
Net Derivative Contract Liabilities [Member] | Credit Default Contracts - States and Municipalities [Member] | Discounted Cash Flow Method [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value, unobservable input, credit default spreads | 1.20% |
Fair value of liability | 1,025 |
Other Fixed Maturities and Equity Securities [Member] | Preferred Stock [Member] | Discounted Cash Flow Method [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value, unobservable input, expected duration | 10 years |
Fair value, unobservable input, discount for transferability restrictions and subordination | 0.97% |
Fair value of asset | 11,307 |
Other Fixed Maturities and Equity Securities [Member] | Common Stock Warrants [Member] | Pricing Model, Warrant [Member]
|
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value, unobservable input, discount for transferability and hedging restrictions | 18.00% |
Fair value of asset | $ 2,851 |
Significant accounting policies and practices (Policies)
|
3 Months Ended |
---|---|
Mar. 31, 2012
|
|
New accounting pronouncements | As
of January 1, 2012, we adopted FASB Accounting Standards Update
(“ASU”) 2010-26, “Accounting for Costs Associated
with Acquiring or Renewing Insurance Contracts.” ASU 2010-26
specifies that only direct incremental costs associated with
successful efforts in acquiring or renewing of insurance contracts
should be capitalized and amortized over the policy term. All other
costs are required to be expensed as incurred. Capitalized costs
include certain advertising costs if the primary purpose of the
advertising is to elicit sales to customers who could be shown to
have responded directly to the advertising and the probable future
revenues generated from the advertising are in excess of expected
future costs to be incurred in realizing those revenues. Berkshire
is adopting ASU 2010-26 on a prospective basis. The impact of the
adoption of this new standard primarily relates to certain
advertising costs of GEICO, which were capitalized prior to the
adoption of ASU 2010-26, but are no longer eligible to be
capitalized. The adoption of this new standard did not have a
material effect on our Consolidated Financial
Statements.
As
of January 1, 2012, we also adopted ASU 2011-04, “Amendments
to Achieve Common Fair Value Measurement and Disclosure
Requirements in U.S. GAAP and IFRSs.” As a result of adopting
ASU 2011-04, we have expanded our fair value
disclosures.
In
December 2011, the FASB issued ASU 2011-11 “Disclosures about
Offsetting Assets and Liabilities.” ASU 2011-11 enhances
disclosures surrounding offsetting (netting) assets and
liabilities. The standard applies to financial instruments and
derivatives and requires companies to disclose both gross and net
information about instruments and transactions eligible for offset
in financial statements and instruments and transactions subject to
a master netting arrangement. ASU 2011-11 is effective
retrospectively for Berkshire beginning January 1, 2013. We
are currently evaluating the effect this standard will have on our
Consolidated Financial Statements.
|
Investments in fixed maturity securities - Narrative (Detail) (Fixed Maturities [Member], USD $)
In Millions, unless otherwise specified |
Mar. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Summary of Investment Holdings [Line Items] | ||
Unrealized losses related to securities that have been in an unrealized loss position for more than 12 months | $ 15 | $ 20 |
Foreign governments [Member] | Germany, United Kingdom, Canada, Australia, and The Netherlands [Member]
|
||
Summary of Investment Holdings [Line Items] | ||
Percentage of fixed maturity investments by geographic location | 80.00% | |
Foreign governments [Member] | AA or Higher Credit Rating [Member]
|
||
Summary of Investment Holdings [Line Items] | ||
Percentage of fixed maturity investments by credit rating | 95.00% |
Common stock (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in issued and outstanding Berkshire common stock | Changes
in Berkshire’s issued and outstanding common stock during the
first quarter of 2012 are shown in the table below.
|
Receivables - Narrative (Detail) (Finance and Financial Products [Member], USD $)
In Millions, unless otherwise specified |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
Dec. 31, 2011
|
|
Consumer installment loans and finance receivables [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Provisions for consumer loan losses | $ 80 | $ 82 | |
Loan charge-offs, net of recoveries | 83 | 81 | |
Unamortized acquisition discounts on consumer loans | $ 512 | $ 500 | |
Percent of loan balances evaluated collectively for impairment | 96.00% | ||
Commercial loans and finance receivables [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percent of loan balances evaluated individually for impairment | 85.00% | ||
Loans and finance receivables [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percent of loan balances that are performing | 98.00% | ||
Percent of loan balances that are current as to payment status | 94.00% |
Common stock - Narrative (Detail) (USD $)
|
3 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2012
Class B [Member]
Vote
|
Mar. 31, 2012
Class A [Member]
Vote
|
Dec. 31, 2011
Class A [Member]
|
Mar. 31, 2012
Preferred Stock [Member]
|
Mar. 31, 2012
Common Stock [Member]
|
|
Class of Stock [Line Items] | |||||
Ratio of net earnings per equivalent common share and dividend and distribution rights of Class B shares to Class A shares | 0.000667 | ||||
Number of votes entitled per share, number | 0.0001 | 1 | |||
Number of shares of Class B stock obtainable from converting one Class A share | 1,500 | ||||
Class A equivalent shares outstanding | 1,651,196 | 1,650,806 | |||
Preferred Stock, shares authorized | 1,000,000 | ||||
Preferred Stock, shares issued | 0 | ||||
Preferred Stock, shares outstanding | 0 | ||||
Shares repurchase, authorization description | In September 2011, our Board of Directors approved a common stock repurchase program whereby it authorized Berkshire Hathaway to repurchase its Class A and Class B shares of Berkshire at prices no higher than a 10% premium over the book value of the shares. | ||||
Minimum cash equivalent threshold after repurchase of common stock shares, amount | $ 20,000,000,000 |
Derivative contracts - Narrative (Detail) (Not Designated as Hedging Instrument [Member], USD $)
|
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2012
|
Dec. 31, 2011
|
|||||
Finance and Financial Products [Member]
|
||||||
Derivative [Line Items] | ||||||
Collateral posting requirements under contracts with collateral provisions | $ 45,000,000 | $ 238,000,000 | ||||
Additional collateral posting requirements | 1,100,000,000 | |||||
Liabilities | 9,055,000,000 | 10,139,000,000 | ||||
Finance and Financial Products [Member] | Other Assets [Member]
|
||||||
Derivative [Line Items] | ||||||
Assets | 232,000,000 | [1] | 256,000,000 | [1] | ||
Finance and Financial Products [Member] | Equity Index Put Options [Member]
|
||||||
Derivative [Line Items] | ||||||
Weighted average remaining life of derivative contract | 8 years 9 months | |||||
Maturity date, range, start | June 2018 | |||||
Maturity date, range, end | January 2026 | |||||
Aggregate intrinsic value of equity index put option contracts | 4,500,000,000 | |||||
Liabilities | 7,810,000,000 | 8,499,000,000 | ||||
Finance and Financial Products [Member] | Credit Default Contracts - High Yield Indexes [Member]
|
||||||
Derivative [Line Items] | ||||||
Maturity date, range, start | 2012 | |||||
Maturity date, range, end | 2013 | |||||
Liabilities | 107,000,000 | 198,000,000 | ||||
Finance and Financial Products [Member] | Credit Default Contracts - States and Municipalities [Member]
|
||||||
Derivative [Line Items] | ||||||
Weighted average remaining life of derivative contract | 9 years | |||||
Percent of the notional value of derivative contracts where the potential obligations cannot be settled before the maturity dates of the underlying obligations, percentage | 50.00% | |||||
Maturity date, range, start | 2019 | |||||
Maturity date, range, end | 2054 | |||||
Liabilities | 1,025,000,000 | 1,297,000,000 | ||||
Railroad, Utilities and Energy [Member] | Other Assets [Member]
|
||||||
Derivative [Line Items] | ||||||
Assets | 61,000,000 | 71,000,000 | ||||
Railroad, Utilities and Energy [Member] | Accounts Payable, Accruals and Other Liabilities [Member]
|
||||||
Derivative [Line Items] | ||||||
Liabilities | $ 472,000,000 | $ 336,000,000 | ||||
|
Other investments - Narrative (Detail) (USD $)
|
1 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
Corporate Joint Venture [Member]
|
Apr. 18, 2011
Goldman Sachs Group Inc [Member]
Other Fixed Maturity and Equity Securities [Member]
Cumulative Perpetual Preferred Stock [Member]
|
Mar. 31, 2012
Goldman Sachs Group Inc [Member]
Other Fixed Maturity and Equity Securities [Member]
Cumulative Perpetual Preferred Stock [Member]
|
Dec. 31, 2008
Goldman Sachs Group Inc [Member]
Other Fixed Maturity and Equity Securities [Member]
Cumulative Perpetual Preferred Stock [Member]
|
Mar. 31, 2012
Goldman Sachs Group Inc [Member]
Other Fixed Maturity and Equity Securities [Member]
Warrants Expiring October 1, 2013 [Member]
|
Dec. 31, 2008
Goldman Sachs Group Inc [Member]
Other Fixed Maturity and Equity Securities [Member]
Cumulative Perpetual Preferred Stock And Warrants [Member]
|
Oct. 17, 2011
General Electric Company [Member]
Other Fixed Maturity and Equity Securities [Member]
Cumulative Perpetual Preferred Stock [Member]
|
Mar. 31, 2012
General Electric Company [Member]
Other Fixed Maturity and Equity Securities [Member]
Cumulative Perpetual Preferred Stock [Member]
|
Dec. 31, 2008
General Electric Company [Member]
Other Fixed Maturity and Equity Securities [Member]
Cumulative Perpetual Preferred Stock [Member]
|
Dec. 31, 2008
General Electric Company [Member]
Other Fixed Maturity and Equity Securities [Member]
Cumulative Perpetual Preferred Stock And Warrants [Member]
|
Mar. 31, 2012
General Electric Company [Member]
Other Fixed Maturity and Equity Securities [Member]
Warrants Expiring October 16, 2013 [Member]
|
Mar. 31, 2012
Wm Wrigley Jr Company [Member]
Other Fixed Maturity and Equity Securities [Member]
Subordinated Debt Due 2018 [Member]
Held-to-maturity Securities [Member]
|
Dec. 31, 2008
Wm Wrigley Jr Company [Member]
Other Fixed Maturity and Equity Securities [Member]
Subordinated Debt Due 2018 [Member]
Held-to-maturity Securities [Member]
|
Mar. 31, 2012
Wm Wrigley Jr Company [Member]
Other Fixed Maturity and Equity Securities [Member]
Preferred Stock [Member]
Available-for-sale Securities [Member]
|
Dec. 31, 2008
Wm Wrigley Jr Company [Member]
Other Fixed Maturity and Equity Securities [Member]
Preferred Stock [Member]
Available-for-sale Securities [Member]
|
Mar. 31, 2012
Wm Wrigley Jr Company [Member]
Other Fixed Maturity and Equity Securities [Member]
Senior Notes Due 2013 and 2014 [Member]
Held-to-maturity Securities [Member]
|
Dec. 31, 2009
Wm Wrigley Jr Company [Member]
Other Fixed Maturity and Equity Securities [Member]
Senior Notes Due 2013 and 2014 [Member]
Held-to-maturity Securities [Member]
|
Mar. 31, 2012
Wm Wrigley Jr Company [Member]
Other Fixed Maturity and Equity Securities [Member]
Senior Notes Due 2013 and 2014 [Member]
Held-to-maturity Securities [Member]
Corporate Joint Venture [Member]
|
Mar. 31, 2012
The Dow Chemical Company [Member]
Other Fixed Maturity and Equity Securities [Member]
Series A Cumulative Convertible Perpetual Preferred Stock [Member]
|
Dec. 31, 2009
The Dow Chemical Company [Member]
Other Fixed Maturity and Equity Securities [Member]
Series A Cumulative Convertible Perpetual Preferred Stock [Member]
|
Sep. 30, 2011
Bank of America Corporation [Member]
Other Fixed Maturity and Equity Securities [Member]
Cumulative Perpetual Preferred Stock [Member]
|
Mar. 31, 2012
Bank of America Corporation [Member]
Other Fixed Maturity and Equity Securities [Member]
Cumulative Perpetual Preferred Stock [Member]
|
Sep. 30, 2011
Bank of America Corporation [Member]
Other Fixed Maturity and Equity Securities [Member]
Cumulative Perpetual Preferred Stock And Warrants [Member]
|
Mar. 31, 2012
Bank of America Corporation [Member]
Other Fixed Maturity and Equity Securities [Member]
Warrants Expiring 2021 [Member]
|
|
Other Investments [Line Items] | ||||||||||||||||||||||||
Investment, number of shares purchased | 50,000 | 30,000 | 3,000,000 | 50,000 | ||||||||||||||||||||
Amount paid for an investment | $ 5,000,000,000 | $ 3,000,000,000 | $ 2,100,000,000 | $ 3,000,000,000 | $ 5,000,000,000 | |||||||||||||||||||
Conversion ratio of preferred stock into common stock | 24.201 | |||||||||||||||||||||||
Preferred stock conversion price, per share | $ 41.32 | |||||||||||||||||||||||
Common stock threshold price, per share, to trigger the issuer's option to convert preferred stock into common stock | $ 53.72 | |||||||||||||||||||||||
Minimum number of trading days in a consecutive-day period that the issuer's common stock price must exceed to trigger the issuer's option to convert preferred stock to common stock | 20 days | |||||||||||||||||||||||
Range of trading days in a consecutive day period, number of days | 30 days | |||||||||||||||||||||||
Investment in preferred stock, stated dividend rate | 10.00% | 10.00% | 5.00% | 8.50% | 6.00% | |||||||||||||||||||
Number of common shares that can be purchased | 43,478,260 | 134,831,460 | 700,000,000 | |||||||||||||||||||||
Redemption value of Cumulative Perpetual Preferred Stock, per share | $ 110,000 | $ 110,000 | $ 105,000 | |||||||||||||||||||||
Redemption value of Cumulative Perpetual Preferred Stock, aggregate value | 5,500,000,000 | 3,300,000,000 | 5,250,000,000 | |||||||||||||||||||||
Proceeds from redemption of preferred stock | 5,500,000,000 | 3,300,000,000 | ||||||||||||||||||||||
Aggregate cost to exercise warrants | 5,000,000,000 | 3,000,000,000 | 5,000,000,000 | |||||||||||||||||||||
Exercise price for warrants, per share | $ 115 | $ 22.25 | $ 7.142857 | |||||||||||||||||||||
Acquisition of debt investments, par value when acquired | 4,400,000,000 | 1,000,000,000 | ||||||||||||||||||||||
Investment owned, face value | $ 800,000,000 | $ 200,000,000 | ||||||||||||||||||||||
Investment in notes, stated interest rate | 11.45% | |||||||||||||||||||||||
Economic interest in joint venture | 50.00% |
New accounting pronouncements
|
3 Months Ended |
---|---|
Mar. 31, 2012
|
|
New accounting pronouncements |
Note 2. New accounting
pronouncements
As
of January 1, 2012, we adopted FASB Accounting Standards Update
(“ASU”) 2010-26, “Accounting for Costs Associated
with Acquiring or Renewing Insurance Contracts.” ASU 2010-26
specifies that only direct incremental costs associated with
successful efforts in acquiring or renewing of insurance contracts
should be capitalized and amortized over the policy term. All other
costs are required to be expensed as incurred. Capitalized costs
include certain advertising costs if the primary purpose of the
advertising is to elicit sales to customers who could be shown to
have responded directly to the advertising and the probable future
revenues generated from the advertising are in excess of expected
future costs to be incurred in realizing those revenues. Berkshire
is adopting ASU 2010-26 on a prospective basis. The impact of the
adoption of this new standard primarily relates to certain
advertising costs of GEICO, which were capitalized prior to the
adoption of ASU 2010-26, but are no longer eligible to be
capitalized. The adoption of this new standard did not have a
material effect on our Consolidated Financial
Statements.
As
of January 1, 2012, we also adopted ASU 2011-04, “Amendments
to Achieve Common Fair Value Measurement and Disclosure
Requirements in U.S. GAAP and IFRSs.” As a result of adopting
ASU 2011-04, we have expanded our fair value
disclosures.
In
December 2011, the FASB issued ASU 2011-11 “Disclosures about
Offsetting Assets and Liabilities.” ASU 2011-11 enhances
disclosures surrounding offsetting (netting) assets and
liabilities. The standard applies to financial instruments and
derivatives and requires companies to disclose both gross and net
information about instruments and transactions eligible for offset
in financial statements and instruments and transactions subject to
a master netting arrangement. ASU 2011-11 is effective
retrospectively for Berkshire beginning January 1, 2013. We
are currently evaluating the effect this standard will have on our
Consolidated Financial Statements.
|
Supplemental cash flow information (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
|
Supplemental Cash Flow Information [Line Items] | ||
Cash paid during the period for income taxes | $ 199 | $ 231 |
Non-cash investing activity - liabilities assumed in connection with acquisitions | 54 | 78 |
Insurance and Other [Member]
|
||
Supplemental Cash Flow Information [Line Items] | ||
Cash paid during the period for interest | 138 | 79 |
Railroad, Utilities and Energy [Member]
|
||
Supplemental Cash Flow Information [Line Items] | ||
Cash paid during the period for interest | 465 | 482 |
Finance and Financial Products [Member]
|
||
Supplemental Cash Flow Information [Line Items] | ||
Cash paid during the period for interest | $ 158 | $ 174 |