Condensed Financial Information

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Financial Information

BERKSHIRE HATHAWAY INC. (Parent Company)

Condensed Financial Information

(Dollars in millions)

Schedule I

Balance Sheets

	December 31,
	2019		2018
Assets:
Cash and cash equivalents	$	15,004	$	3,437
Short-term investments in U.S. Treasury Bills		25,514		22,957
Investments in and advances to/from consolidated subsidiaries		392,162		328,898
Investment in The Kraft Heinz Company		13,757		13,813
Other assets		131		80
	$	446,568	$	369,185
Liabilities and Shareholders’ Equity:
Accounts payable, accrued interest and other liabilities	$	320	$	1,507
Income taxes, principally deferred		1,554		2,104
Notes payable and other borrowings		19,903		16,871
		21,777		20,482
Berkshire Hathaway shareholders’ equity		424,791		348,703
	$	446,568	$	369,185

Statements of Earnings and Comprehensive Income

	Year ended December 31,
	2019			2018			2017
Income items:
From consolidated subsidiaries:
Dividends and distributions	$	15,603		$	9,658		$	5,367
Undistributed earnings (losses)		65,237			(3,952	)		37,832
		80,840			5,706			43,199
Investment gains (losses)		(125	)		(4	)		(1	)
Equity in net earnings (losses) of The Kraft Heinz Company		493			(2,730	)		2,938
Other income		780			649			350
		81,988			3,621			46,486
Cost and expense items:
General and administrative		122			216			159
Interest expense		591			601			522
Foreign exchange (gains) losses on non-U.S. Dollar denominated debt		(193	)		(366	)		1,008
Income tax expense (benefit)		51			(851	)		(143	)
		571			(400	)		1,546
Net earnings attributable to Berkshire Hathaway shareholders		81,417			4,021			44,940
Other comprehensive income attributable to Berkshire Hathaway shareholders		(228	)		(2,211	)		21,273
Comprehensive income attributable to Berkshire Hathaway shareholders	$	81,189		$	1,810		$	66,213

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,
	2019			2018			2017
Cash flows from operating activities:
Net earnings attributable to Berkshire Hathaway shareholders	$	81,417		$	4,021		$	44,940
Adjustments to reconcile net earnings to cash flows from operating activities:
Investment gains/losses		125			4			1
Undistributed earnings of consolidated subsidiaries		(65,237	)		3,952			(37,832	)
Income taxes payable		(56	)		(972	)		(135	)
Other		(693	)		3,062			(1,234	)
Net cash flows from operating activities		15,556			10,067			5,740
Cash flows from investing activities:
Investments in and advances to/from consolidated subsidiaries, net		60			460			(239	)
Purchases of U.S. Treasury Bills		(40,107	)		(29,740	)		(19,663	)
Sales and maturities of U.S. Treasury Bills		36,943			21,442			14,847
Other		737			—			—
Net cash flows from investing activities		(2,367	)		(7,838	)		(5,055	)
Cash flows from financing activities:
Proceeds from borrowings		3,967			17			1,201
Repayments of borrowings		(758	)		(1,563	)		(1,145	)
Acquisition of treasury stock		(4,850	)		(1,346	)		—
Other		19			61			77
Net cash flows from financing activities		(1,622	)		(2,831	)		133
Increase (decrease) in cash and cash equivalents		11,567			(602	)		818
Cash and cash equivalents at beginning of year		3,437			4,039			3,221
Cash and cash equivalents at end of year	$	15,004		$	3,437		$	4,039
Other cash flow information:
Income taxes paid	$	3,531		$	2,790		$	2,076
Interest paid	364				388			386

Note to Condensed Financial Information

Berkshire acquired 50% of the outstanding common stock of Heinz Holding Company in 2013. After a series of transactions in 2015, that interest represented 26.8% of the outstanding common stock of The Kraft Heinz Company (“Kraft Heinz”). Berkshire currently owns 26.6% of the outstanding shares of Kraft Heinz common stock. Reference is made to Note 5 to the accompanying Consolidated Financial Statements for additional information.

In 2019, the Parent Company issued ¥430.0 billion of senior notes with various maturities and interest rates. See Note 17 to the accompanying Consolidated Financial Statements for additional information. For each of the three years ending December 31, 2019, Parent Company borrowings also included €6.85 billion senior notes. The gains and losses from the periodic remeasurement of these non-U.S. Dollar denominated notes due to changes in foreign currency exchange rates are included in earnings.

Parent Company debt maturities over the next five years are as follows: 2020—$1,122 million; 2021—$2,117 million; 2022—$613 million; 2023—$3,958 million and 2024—$2,120 million. At December 31, 2019, Parent Company guarantees of debt obligations of certain of its subsidiaries were approximately $12.2 billion. Such guarantees are an absolute, unconditional and irrevocable guarantee for the full and prompt payment when due of all present and future payment obligations. Parent Company has also provided guarantees in connection with equity index put option contracts and certain retroactive reinsurance contracts of subsidiaries. The amounts of subsidiary payments under these contracts, if any, is contingent upon the outcome of future events.

In December 2017, the Tax Cuts and Jobs Act of 2017 (“TCJA”) was enacted, which reduced the Parent Company’s income tax expense in 2017 by $550 million, primarily due to the reduction in deferred tax liabilities attributable to the lower U.S. statutory rate, partly offset by a one-time income tax expense on certain accumulated undistributed earnings of foreign subsidiaries. The effects of the TCJA on income tax expense of consolidated subsidiaries is included in undistributed earnings in consolidated subsidiaries.