FORM 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to

Commission file number 001-14905

BERKSHIRE HATHAWAY INC.

(Exact name of registrant as specified in its charter)

Delaware	47-0813844
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

3555 Farnam Street, Omaha, Nebraska 68131

(Address of principal executive office) (Zip Code)

(402) 346-1400

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbols	Name of each exchange on which registered
Class A Common Stock Class B Common Stock 0.750% Senior Notes due 2023 1.125% Senior Notes due 2027 1.625% Senior Notes due 2035 1.300% Senior Notes due 2024 2.150% Senior Notes due 2028 0.625% Senior Notes due 2023 0.000% Senior Notes due 2025 2.375% Senior Notes due 2039 0.500% Senior Notes due 2041 2.625% Senior Notes due 2059	BRK.A BRK.B BRK23 BRK27 BRK35 BRK24 BRK28 BRK23A BRK25 BRK39 BRK41 BRK59	New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

Number of shares of common stock outstanding as of April 22, 2021:

Class A —	637,990
Class B —	1,326,572,128

BERKSHIRE HATHAWAY INC.

		Page No.
Part I – Financial Information
Item 1.  Financial Statements
	Consolidated Balance Sheets—March 31, 2021 and December 31, 2020	2-3
	Consolidated Statements of Earnings—First Quarter 2021 and 2020	4
	Consolidated Statements of Comprehensive Income—First Quarter 2021 and 2020	5
	Consolidated Statements of Changes in Shareholders’ Equity—First Quarter 2021 and 2020	5
	Consolidated Statements of Cash Flows—First Quarter 2021 and 2020	6
	Notes to Consolidated Financial Statements	7-22
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23-40
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.	Controls and Procedures	41
Part II – Other Information		41
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities	42
Item 3.	Defaults Upon Senior Securities	42
Item 4.	Mine Safety Disclosures	42
Item 5.	Other Information	42
Item 6.	Exhibits	43
Signature		43

1

Part I Financial Information

Item 1. Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(dollars in millions)

	March 31, 2021		December 31, 2020
	(Unaudited)
ASSETS
Insurance and Other:
Cash and cash equivalents*	$	56,826	$	44,714
Short-term investments in U.S. Treasury Bills		85,385		90,300
Investments in fixed maturity securities		20,027		20,410
Investments in equity securities		282,097		281,170
Equity method investments		16,533		17,303
Loans and finance receivables		19,449		19,201
Other receivables		35,002		32,310
Inventories		18,886		19,208
Property, plant and equipment		20,990		21,200
Equipment held for lease		14,567		14,601
Goodwill		47,054		47,121
Other intangible assets		29,184		29,462
Deferred charges under retroactive reinsurance contracts		12,189		12,441
Other		15,447		14,580
		673,636		664,021
Railroad, Utilities and Energy:
Cash and cash equivalents*		3,228		3,276
Receivables		4,050		3,542
Property, plant and equipment		151,799		151,216
Goodwill		26,641		26,613
Regulatory assets		3,492		3,440
Other		21,547		21,621
		210,757		209,708
	$	884,393	$	873,729

* Includes U.S. Treasury Bills with maturities of three months or less when purchased of $34.5 billion at March 31, 2021 and $23.2 billion at December 31, 2020.

See accompanying Notes to Consolidated Financial Statements

2

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(dollars in millions)

	March 31, 2021			December 31, 2020
	(Unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Insurance and Other:
Unpaid losses and loss adjustment expenses	$	80,961		$	79,854
Unpaid losses and loss adjustment expenses under retroactive reinsurance contracts		40,685			40,966
Unearned premiums		23,756			21,395
Life, annuity and health insurance benefits		21,709			21,616
Other policyholder liabilities		8,486			8,670
Accounts payable, accruals and other liabilities		28,486			29,279
Payable for purchase of short-term investments in U.S. Treasury Bills		4,084			—
Derivative contract liabilities		577			1,065
Aircraft repurchase liabilities and unearned lease revenues		5,717			5,856
Notes payable and other borrowings		39,556			41,522
		254,017			250,223
Railroad, Utilities and Energy:
Accounts payable, accruals and other liabilities		15,207			15,224
Regulatory liabilities		7,626			7,475
Notes payable and other borrowings		74,975			75,373
		97,808			98,072
Income taxes, principally deferred		76,392			74,098
Total liabilities		428,217			422,393
Shareholders’ equity:
Common stock		8			8
Capital in excess of par value		35,630			35,626
Accumulated other comprehensive income		(4,570	)		(4,243	)
Retained earnings		456,337			444,626
Treasury stock, at cost		(39,418	)		(32,853	)
Berkshire Hathaway shareholders’ equity		447,987			443,164
Noncontrolling interests		8,189			8,172
Total shareholders’ equity		456,176			451,336
	$	884,393		$	873,729

See accompanying Notes to Consolidated Financial Statements

3

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS

(dollars in millions except per share amounts)

	First Quarter
	2021		2020
	(Unaudited)
Revenues:
Insurance and Other:
Insurance premiums earned	$	16,424	$	15,748
Sales and service revenues		33,698		31,926
Leasing revenues		1,324		1,428
Interest, dividend and other investment income		1,851		2,276
		53,297		51,378
Railroad, Utilities and Energy:
Freight rail transportation revenues		5,378		5,380
Energy operating revenues		4,848		3,634
Service revenues and other income		1,076		873
		11,302		9,887
Total revenues		64,599		61,265
Investment and derivative contract gains/losses		5,700		(70,275	)
Costs and expenses:
Insurance and Other:
Insurance losses and loss adjustment expenses		10,964		10,979
Life, annuity and health insurance benefits		1,480		1,383
Insurance underwriting expenses		3,014		2,924
Cost of sales and services		26,530		25,392
Cost of leasing		882		1,002
Selling, general and administrative expenses		3,910		4,471
Interest expense		276		296
		47,056		46,447
Railroad, Utilities and Energy:
Freight rail transportation expenses		3,510		3,593
Utilities and energy cost of sales and other expenses		3,589		2,722
Other expenses		1,093		849
Interest expense		774		728
		8,966		7,892
Total costs and expenses		56,022		54,339
Earnings (loss) before income taxes and equity method earnings		14,277		(63,349	)
Equity method earnings		251		300
Earnings (loss) before income taxes		14,528		(63,049	)
Income tax expense (benefit)		2,688		(13,352	)
Net earnings (loss)		11,840		(49,697	)
Earnings attributable to noncontrolling interests		129		49
Net earnings (loss) attributable to Berkshire Hathaway shareholders	$	11,711	$	(49,746	)
Net earnings (loss) per average equivalent Class A share	$	7,638	$	(30,653	)
Net earnings (loss) per average equivalent Class B share*	$	5.09	$	(20.44	)
Average equivalent Class A shares outstanding		1,533,284		1,622,889
Average equivalent Class B shares outstanding		2,299,925,502		2,434,333,367

* Class B shares are economically equivalent to one-fifteen-hundredth of a Class A share. Accordingly, net earnings per average equivalent Class B share outstanding is equal to one-fifteen-hundredth of the equivalent Class A amount. See Note 17.

See accompanying Notes to Consolidated Financial Statements

4

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(dollars in millions)

	First Quarter
	2021			2020
	(Unaudited)
Net earnings (loss)	$	11,840		$	(49,697	)
Other comprehensive income:
Unrealized appreciation of investments		(87	)		(180	)
Applicable income taxes		20			41
Foreign currency translation		(285	)		(1,454	)
Applicable income taxes		(3	)		47
Defined benefit pension plans		61			95
Applicable income taxes		(20	)		(21	)
Other, net		(6	)		(59	)
Other comprehensive income, net		(320	)		(1,531	)
Comprehensive income		11,520			(51,228	)
Comprehensive income attributable to noncontrolling interests		136			(4	)
Comprehensive income attributable to Berkshire Hathaway shareholders	$	11,384		$	(51,224	)

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(dollars in millions)

(Unaudited)

	Berkshire Hathaway shareholders’ equity
	Common stock and capital in excess of par value		Accumulated other comprehensive income			Retained earnings			Treasury stock			Non- controlling interests		Total
For the first quarter of 2020
Balance at December 31, 2019	$	35,666	$	(5,243	)	$	402,493		$	(8,125	)	$	3,772	$	428,563
Net earnings (loss)		—		—			(49,746	)		—