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 September 30, 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 October 27, 2021:

Class A —	619,938
Class B —	1,303,476,707

BERKSHIRE HATHAWAY INC.

		Page No.
Part I – Financial Information
Item 1.  Financial Statements
	Consolidated Balance Sheets—September 30, 2021 and December 31, 2020	2-3
	Consolidated Statements of Earnings—Third Quarter and First Nine Months 2021 and 2020	4
	Consolidated Statements of Comprehensive Income—Third Quarter and First Nine Months 2021 and 2020	5
	Consolidated Statements of Changes in Shareholders’ Equity—Third Quarter and First Nine Months 2021 and 2020	6
	Consolidated Statements of Cash Flows—First Nine Months 2021 and 2020	7
	Notes to Consolidated Financial Statements	8-24
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25-45
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4.	Controls and Procedures	45
Part II – Other Information
Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities	46
Item 3.	Defaults Upon Senior Securities	46
Item 4.	Mine Safety Disclosures	46
Item 5.	Other Information	46
Item 6.	Exhibits	47
Signature		47

1

Part I Financial Information

Item 1. Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(dollars in millions)

	September 30, 2021		December 31, 2020
	(Unaudited)
ASSETS
Insurance and Other:
Cash and cash equivalents*	$	65,156	$	44,714
Short-term investments in U.S. Treasury Bills		79,209		90,300
Investments in fixed maturity securities		18,125		20,410
Investments in equity securities		310,739		281,170
Equity method investments		16,658		17,303
Loans and finance receivables		20,397		19,201
Other receivables		37,277		32,310
Inventories		20,191		19,208
Property, plant and equipment		20,722		21,200
Equipment held for lease		14,752		14,601
Goodwill		47,090		47,121
Other intangible assets		28,643		29,462
Deferred charges under retroactive reinsurance contracts		11,732		12,441
Other		16,301		14,580
		706,992		664,021
Railroad, Utilities and Energy:
Cash and cash equivalents*		4,833		3,276
Receivables		4,324		3,542
Property, plant and equipment		153,401		151,216
Goodwill		26,680		26,613
Regulatory assets		3,842		3,440
Other		20,686		21,621
		213,766		209,708
	$	920,758	$	873,729

* Includes U.S. Treasury Bills with maturities of three months or less when purchased of $37.9 billion at September 30, 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)

	September 30, 2021			December 31, 2020
	(Unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Insurance and Other:
Unpaid losses and loss adjustment expenses	$	85,754		$	79,854
Unpaid losses and loss adjustment expenses under retroactive reinsurance contracts		39,721			40,966
Unearned premiums		25,239			21,395
Life, annuity and health insurance benefits		22,409			21,616
Other policyholder liabilities		8,863			8,670
Accounts payable, accruals and other liabilities		31,154			29,279
Derivative contract liabilities		286			1,065
Aircraft repurchase liabilities and unearned lease revenues		5,840			5,856
Notes payable and other borrowings		39,645			41,522
		258,911			250,223
Railroad, Utilities and Energy:
Accounts payable, accruals and other liabilities		15,978			15,224
Regulatory liabilities		7,226			7,475
Notes payable and other borrowings		75,320			75,373
		98,524			98,072
Income taxes, principally deferred		82,248			74,098
Total liabilities		439,683			422,393
Shareholders’ equity:
Common stock		8			8
Capital in excess of par value		35,603			35,626
Accumulated other comprehensive income		(4,834	)		(4,243	)
Retained earnings		494,775			444,626
Treasury stock, at cost		(53,072	)		(32,853	)
Berkshire Hathaway shareholders’ equity		472,480			443,164
Noncontrolling interests		8,595			8,172
Total shareholders’ equity		481,075			451,336
	$	920,758		$	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)

(Unaudited)

	Third Quarter				First Nine Months
	2021		2020		2021		2020
Revenues:
Insurance and Other:
Insurance premiums earned	$	17,727	$	15,913	$	51,314	$	47,256
Sales and service revenues		36,722		32,703		107,163		93,332
Leasing revenues		1,565		1,316		4,336		3,905
Interest, dividend and other investment income		1,795		1,717		5,544		6,143
		57,809		51,649		168,357		150,636
Railroad, Utilities and Energy:
Freight rail transportation revenues		5,761		5,148		16,917		15,101
Energy operating revenues		5,225		4,451		14,375		11,504
Service revenues and other income		1,788		1,776		4,647		3,888
		12,774		11,375		35,939		30,493
Total revenues		70,583		63,024		204,296		181,129
Investment and derivative contract gains		4,921		31,582		38,015		1,392
Costs and expenses:
Insurance and Other:
Insurance losses and loss adjustment expenses		13,939		11,667		37,078		32,712
Life, annuity and health insurance benefits		1,568		1,311		4,507		4,101
Insurance underwriting expenses		3,239		3,228		9,318		9,219
Cost of sales and services		28,984		25,957		84,275		74,565
Cost of leasing		1,116		854		2,980		2,605
Selling, general and administrative expenses		4,889		5,181		13,844		14,304
Goodwill and intangible asset impairments		—		25		—		10,659
Interest expense		286		263		860		817
		54,021		48,486		152,862		148,982
Railroad, Utilities and Energy:
Freight rail transportation expenses		3,527		3,161		10,625		9,625
Utilities and energy cost of sales and other expenses		3,497		3,101		10,306		8,326
Other expenses		1,582		1,481		4,238		3,422
Interest expense		770		737		2,322		2,209
		9,376		8,480		27,491		23,582
Total costs and expenses		63,397		56,966