BERKSHIRE HATHAWAY INC.

(Parent Company)

Condensed Financial Information

(Dollars in millions)

Schedule I

Balance Sheets


	December 31,
	2016		2015
Assets:
Cash and cash equivalents and U.S. Treasury Bills:
Cash and cash equivalents	$	3,221	$	10,609
U.S. Treasury Bills		8,220		—

Total cash, cash equivalents and U.S. Treasury Bills		11,441		10,609
Investments in fixed maturity and equity securities and other assets		59		113
Investments in and advances to/from consolidated subsidiaries		277,398		233,977
Investments in The Kraft Heinz Company		15,345		23,424

	$	304,243	$	268,123

Liabilities and Shareholders’ Equity:
Accounts payable, accrued interest and other liabilities	$	182	$	111
Income taxes, principally deferred		3,357		2,663
Notes payable and other borrowings		17,703		9,799

		21,242		12,573
Berkshire Hathaway shareholders’ equity		283,001		255,550

	$	304,243	$	268,123

Statements of Earnings and Comprehensive Income


	Year ended December 31,
	2016		2015			2014
Income items:
From consolidated subsidiaries:
Dividends	$	9,862	$	10,519		$	4,969
Undistributed earnings		13,264		8,508			14,496

		23,126		19,027			19,465
Investment gains/losses		700		6,854			—
Equity in net earnings of The Kraft Heinz Company		923		(122	)		(26	)
Other income		262		963			784

		25,011		26,722			20,223

Cost and expense items:
General and administrative		80		73			(1	)
Interest expense		208		302			236
Income taxes		649		2,264			116

		937		2,639			351

Net earnings attributable to Berkshire Hathaway shareholders		24,074		24,083			19,872
Other comprehensive income attributable to Berkshire Hathaway shareholders		3,316		(8,750	)		(1,293	)

Comprehensive income attributable to Berkshire Hathaway shareholders	$	27,390	$	15,333		$	18,579

See Note to Condensed Financial Information

BERKSHIRE HATHAWAY INC.

(Parent Company)

Condensed Financial Information

(Dollars in millions)

Schedule I (continued)

Statements of Cash Flows


	Year ended December 31,
	2016			2015			2014
Cash flows from operating activities:
Net earnings attributable to Berkshire Hathaway shareholders	$	24,074		$	24,083		$	19,872
Adjustments to reconcile net earnings to cash flows from operating activities:
Investment gains/losses		(700	)		(6,854	)		—
Undistributed earnings of subsidiaries		(13,264	)		(8,508	)		(14,496	)
Non-cash dividends from subsidiaries		—			(3,938	)		—
Income taxes payable		629			2,227			136
Other		(161	)		222			(75	)

Net cash flows from operating activities		10,578			7,232			5,437

Cash flows from investing activities:
Redemption (purchase) of Kraft Heinz investments		8,320			(5,258	)		—
Investments in and advances to/repayments from subsidiaries		(26,398	)		(2,274	)		1,673
Purchases of U.S. Treasury Bills		(9,350	)		—			—
Sales and maturities of U.S. Treasury Bills		1,145			—			—

Net cash flows from investing activities		(26,283	)		(7,532	)		1,673

Cash flows from financing activities:
Proceeds from borrowings		9,278			3,165			832
Repayments of borrowings		(1,125	)		(1,775	)		(792	)
Acquisitions of noncontrolling interests		(2	)		(10	)		(1,231	)
Other		166			80			118

Net cash flows from financing activities		8,317			1,460			(1,073	)

Increase (decrease) in cash and cash equivalents		(7,388	)		1,160			6,037
Cash and cash equivalents at beginning of year		10,609			9,449			3,412

Cash and cash equivalents at end of year	$	3,221		$	10,609		$	9,449

Other cash flow information:
Income taxes paid	$	3,583		$	3,180		$	2,512
Interest paid		307			206			233
Non-cash investments in subsidiaries		—			3,938			—

Note to Condensed Financial Information

In 2013, Berkshire Hathaway Inc. (“Berkshire”) invested $12.25 billion in H.J. Heinz Holding Corporation (“Heinz Holding”), an entity formed to acquire H.J. Heinz Company. Berkshire’s investments included common stock and warrants and cumulative compounding preferred stock. In 2015, Berkshire exercised the common stock warrants and acquired additional shares of Kraft Heinz common stock for approximately $5.3 billion. Thereafter, Heinz Holding and Kraft Foods Group, Inc. completed a merger, and Heinz Holding was renamed The Kraft Heinz Company (“Kraft Heinz”). Kraft Heinz issued additional common stock to Kraft Food holders, reducing Berkshire’s ownership from 52.5% to 26.8%. Berkshire accounted for its investment in Heinz Holding common stock and continues to account for its investment in Kraft Heinz common stock under the equity method. In applying the equity method, the investor treats the issuance of shares by an investee as if the investor had sold a proportionate share of its investment. As a result, Berkshire recorded a non-cash pre-tax holding gain of approximately $6.8 billion in 2015. In 2016, Kraft Heinz redeemed the preferred stock for cash of $8.32 billion.

On January 8, 2016, Berkshire entered into a $10 billion 364-day revolving credit agreement and Berkshire borrowed $10 billion under the agreement in connection with the acquisition of Precision Castparts Corp. on January 29. In March 2016, Berkshire issued €2.75 billion and $5.5 billion in senior unsecured notes. The notes consisted of €1.0 billion of 0.50% notes due in 2020, €1.0 billion of 1.30% notes due in 2024, €750 million of 2.15% notes due in 2028, $1.0 billion of 2.20% notes due in 2021, $2.0 billion of 2.75% notes due in 2023 and $2.5 billion of 3.125% notes due in 2026. The proceeds from these debt issues were used to repay all outstanding borrowings under the aforementioned credit agreement, which was subsequently terminated. In August 2016, Berkshire issued $750 million in senior unsecured notes consisting of $500 million of 1.15% notes due in 2018 and $250 million of floating rate notes due in 2018, to replace $750 million of maturing debt. Notes payable and borrowings at December 31, 2016 mature over the next five years as follows: 2017—$1,101 million; 2018—$1,551 million; 2019—$754 million; 2020—$1,054 million and 2021—$1,500 million.

Berkshire guarantees debt obligations of certain of its subsidiaries, which as of December 31, 2016, totaled approximately $17.7 billion. Berkshire’s guarantee of subsidiary debt is an absolute, unconditional and irrevocable guarantee for the full and prompt payment when due of all present and future payment obligations. Berkshire also provides guarantees in connection with equity index put option contracts of a subsidiary. The estimated fair value of liabilities recorded under such contracts was approximately $2.9 billion as of December 31, 2016. The amount of subsidiary payments under these contracts, if any, is contingent upon future events.