SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) February 25, 2017
BERKSHIRE HATHAWAY INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
| DELAWARE | 001-14905 | 47-0813844 | ||
| (STATE OR OTHER JURISDICTION OF INCORPORATION) |
(COMMISSION FILE NUMBER) |
(I.R.S. EMPLOYER IDENTIFICATION NO.) | ||
| 3555 Farnam Street Omaha, Nebraska |
68131 | |||
| (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) | (ZIP CODE) | |||
(402) 346-1400
REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 2.02 | Results of Operations and Financial Condition. |
On February 25, 2017, Berkshire Hathaway Inc. issued a press release announcing the Company’s earnings for the fourth quarter and year ended December 31, 2016. A copy of this press release is furnished with this report as an exhibit to this Form 8-K.
| ITEM 9.01 | Financial Statements and Exhibits |
Exhibit 99.1 Berkshire Hathaway Inc. Earnings Release Dated February 25, 2017.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| February 27, 2017 | BERKSHIRE HATHAWAY INC. | |||
| /s/ Marc D. Hamburg | ||||
| By: Marc D. Hamburg Senior Vice President and Chief Financial Officer | ||||
Exhibit 99.1
BERKSHIRE HATHAWAY INC.
NEWS RELEASE
| FOR IMMEDIATE RELEASE | February 25, 2017 |
Omaha, NE (BRK.A; BRK.B) –
We show below summary financial data for the fourth quarter and full year. However, we urge investors and reporters to carefully read our Annual Report, which has been posted on the Internet at www.berkshirehathaway.com. The limited information that follows in this press release is totally inadequate for making an informed investment judgment or for an evaluation of 2016 business performance. Earnings are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).
| Fourth Quarter | Full Year | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Operating earnings |
$ | 4,382 | $ | 4,673 | $ | 17,577 | $ | 17,358 | ||||||||
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| Investment and derivative gains/losses |
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| Investment gains |
1,200 | 399 | 6,009 | * | 6,092 | ** | ||||||||||
| Derivative gains/losses |
704 | 406 | 488 | 633 | ||||||||||||
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| 1,904 | 805 | 6,497 | 6,725 | |||||||||||||
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| Net earnings attributable to Berkshire shareholders |
$ | 6,286 | $ | 5,478 | $ | 24,074 | $ | 24,083 | ||||||||
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| * Includes after-tax gains of approximately $2.7 billion from the disposition of preferred stock in Wrigley and Kraft Heinz and conversion of preferred stock of Dow Chemical. Also includes after-tax gain of approximately $1.9 billion from the exchange of Procter & Gamble common stock for Duracell. |
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| ** Includes after-tax non-cash holding gain of $4.4 billion that was recognized in connection with the merger of Kraft Foods and H.J. Heinz. |
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| Operating earnings per Class A equivalent share |
$ | 2,665 | $ | 2,843 | $ | 10,693 | $ | 10,564 | ||||||||
| Investment and derivative gains per Class A equivalent share |
1,158 | 490 | 3,952 | 4,092 | ||||||||||||
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| Net earnings per Class A equivalent share attributable to Berkshire shareholders |
$ | 3,823 | $ | 3,333 | $ | 14,645 | $ | 14,656 | ||||||||
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| Average Class A equivalent shares outstanding |
1,644,157 | 1,643,373 | 1,643,826 | 1,643,183 | ||||||||||||
| Book value per Class A equivalent share at December 31 |
$ | 172,108 | $ | 155,501 | ||||||||||||
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Note: Per share amounts for the Class B shares are 1/1,500th those shown for the Class A.
An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).
| Fourth Quarter | Full Year | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Insurance-underwriting |
$ | 548 | $ | 306 | $ | 1,370 | $ | 1,162 | ||||||||
| Insurance-investment income |
889 | 1,033 | 3,636 | 3,725 | ||||||||||||
| Railroad, utilities and energy businesses |
1,425 | 1,507 | 5,856 | 6,380 | ||||||||||||
| Other businesses |
1,553 | 1,490 | 7,058 | 6,061 | ||||||||||||
| Other |
(33 | ) | 337 | (343 | ) | 30 | ||||||||||
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| Operating earnings |
$ | 4,382 | $ | 4,673 | $ | 17,577 | $ | 17,358 | ||||||||
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In the table on the prior page (which, as noted, reports after-tax results), we give investment and derivative gains (losses) lines of their own because the amounts of these in any given quarter or year are often meaningless.
At December 31, 2016, our book value had increased by 10.7% since yearend 2015 to $172,108 per Class A equivalent share. Insurance float (the net liabilities we assume under insurance contracts) at December 31, 2016 was approximately $91.6 billion.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP figures in accordance with Regulation G are included herein.
Berkshire presents its results in the way it believes will be most meaningful and useful, as well as most transparent, to the investing public and others who use Berkshire’s financial information. That presentation includes the use of certain non-GAAP financial measures. In addition to the GAAP presentations of net earnings, Berkshire shows operating earnings defined as net earnings exclusive of investment and derivative gains/losses.
Although the investment of insurance and reinsurance premiums to generate investment income and investment gains or losses is an integral part of Berkshire’s operations, investing activities are independent of the insurance underwriting process. Moreover, under applicable GAAP accounting requirements, losses can be created as the result of other-than-temporary declines in value without actual realization or when certain types of investments are marked-to-market through earnings. In sum, investment and derivative gains/losses for any particular period are not indicative of quarterly business performance.
About Berkshire
Berkshire Hathaway and its subsidiaries engage in diverse business activities including property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.
Cautionary Statement
Certain statements contained in this press release are “forward looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.
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Contact
Marc D. Hamburg
402-346-1400