Category Archives: Financial Reports

Berkshire Hathaway Results Q1 2021

Berkshire’s operating results for the first quarters of 2021 and 2020 are summarized in the following paragraphs. However, we urge investors and reporters to read our 10-Q, which has been posted at www.berkshirehathaway.comThe limited information that follows in this press release is not adequate for making an informed investment judgment.

Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the first quarters of 2021 and 2020 are summarized below. Earnings are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).

First Quarter

2021

2020

Net earnings (loss) attributable to Berkshire shareholders

$

11,711

$

(49,746

)

Net earnings (loss) includes:

Investment and derivative gains (losses)

4,693

(55,617

)

Operating earnings

7,018

5,871

Net earnings (loss) attributable to Berkshire 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

Generally Accepted Accounting Principles (“GAAP”) require that we include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our earnings statements. In the table above, investment gains (losses) include gains of approximately $2.8 billion in the first quarter of 2021 and losses of approximately $54.5 billion in the first quarter of 2020 due to changes during the first quarters of 2021 and 2020 in the amount of unrealized gains that existed in our equity security investment holdings. Investment gains (losses) also include after-tax realized gains on sales of investments of approximately $1,414 million and $965 million in the first quarters of 2021 and 2020, respectively.

The amount of investment gains (losses) in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.

An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).

First Quarter

2021

2020

Insurance-underwriting

$

764

$

363

Insurance-investment income

1,208

1,386

Railroad, utilities and energy

1,954

1,751

Other businesses

2,619

2,038

Other

473

333

Operating earnings

$

7,018

$

5,871

Approximately $6.6 billion was used to purchase shares of Class A and Class B common stock during the first quarter of 2021. On March 31, 2021, there were 1,525,655 Class A equivalent shares outstanding.

At March 31, 2021, insurance float (the net liabilities we assume under insurance contracts) was approximately $140 billion, an increase of approximately $2 billion since yearend 2020.

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 and impairments of goodwill and intangible assets.

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, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are now required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our periodic earnings statements. In sum, investment 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 insurance and reinsurance, utilities and energy, freight rail transportation, 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.

Berkshire Hathaway Third Quarter Earnings

(BRK.A), (BRK.B)

Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the third quarter and first nine months of 2020 and 2019 are summarized below. Earnings are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).

Third Quarter

First Nine Months

2020

2019

2020

2019

Net earnings attributable to Berkshire shareholders

$

30,137

$

16,524

$

6,686

$

52,258

Net earnings includes:

Investment and derivative gains/losses –

Investments(1)

24,771

8,481

1,271

31,745

Derivatives

(34

)

185

(506

)

961

24,737

8,666

765

32,706

Impairments of intangible assets(2)

(78

)

(214

)

(10,980

)

(214

)

Operating earnings

5,478

8,072

16,901

19,766

Net earnings attributable to Berkshire shareholders

$

30,137

$

16,524

$

6,686

$

52,258

Net earnings per average equivalent Class A Share

$

18,994

$

10,119

$

4,160

$

31,944

Net earnings per average equivalent Class B Share

$

12.66

$

6.75

$

2.77

$

21.30

Average equivalent Class A shares outstanding

1,586,698

1,633,002

1,607,041

1,635,903

Average equivalent Class B shares outstanding

2,380,046,304

2,449,502,430

2,410,561,550

2,453,854,768

Note: Per share amounts for the Class B shares are 1/1,500th of those shown for the Class A.

(1) Generally Accepted Accounting Principles (“GAAP”) require that we include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our earnings statements. In the table above, investment gains/losses in 2020 include gains of $22.4 billion in the third quarter and $2.3 billion in the first nine months and in 2019 include gains of $8.0 billion in the third quarter and $30.1 billion in the first nine months due to changes during the third quarter and the first nine months in the unrealized gains that existed in our equity security investment holdings. Investment gains/losses in 2020 also include after-tax realized gains on sales of investments of $3.1 billion during the third quarter and $552 million during the first nine months. In 2019, investment gains/losses include after-tax realized gains of $513 million during the third quarter and $1.6 billion during the first nine months.

The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.

(2) Impairments of intangible assets in the first nine months of 2020 include charges of $9.8 billion recorded in the second quarter attributable to impairments of goodwill and certain identifiable intangible assets that were recorded in connection with Berkshire’s acquisition of Precision Castparts Corp. in 2016.

An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).

Third Quarter

First Nine Months

2020

2019

2020

2019

Insurance-underwriting

$

(213

)

$

440

$

956

$

1,182

Insurance-investment income

1,015

1,484

3,769

4,087

Railroad, utilities and energy

2,742

2,644

6,257

6,447

Other businesses

2,346

2,455

5,833

7,142

Other

(412

)

1,049

86

908

Operating earnings

$

5,478

$

8,072

$

16,901

$

19,766

Approximately $9 billion was used to repurchase Berkshire shares during the third quarter bringing the nine month total to approximately $16 billion. On September 30, 2020 there were 1,570,636 Class A equivalent shares outstanding. At September 30, 2020, insurance float (the net liabilities we assume under insurance contracts) was approximately $135 billion, an increase of $6 billion since yearend 2019.

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 and impairments of goodwill and intangible assets.

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, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our periodic earnings statements. In sum, investment 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 insurance and reinsurance, utilities and energy, freight rail transportation, 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.

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Berkshire Hathaway Second Quarter 2020 Earnings

(BRK.A), (BRK.B)

 

Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the second quarter and first six months of 2020 and 2019 are summarized below. Earnings are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).

Second Quarter

First Six Months

2020

2019

2020

2019

Net earnings (loss) attributable to Berkshire shareholders

$

26,295

$

14,073

$

(23,451

)

$

35,734

Net earnings (loss) includes:

Investment and derivative gains/losses –

Investments(1)

31,017

7,766

(23,500

)

23,264

Derivatives

628

168

(472

)

776

31,645

7,934

(23,972

)

24,040

Impairments of intangible assets(2)

(10,863

)

(10,902

)

Operating earnings

5,513

6,139

11,423

11,694

Net earnings (loss) attributable to Berkshire shareholders

$

26,295

$

14,073

$

(23,451

)

$

35,734

Net earnings (loss) per average equivalent Class A Share

$

16,314

$

8,608

$

(14,500

)

$

21,824

Net earnings (loss) per average equivalent Class B Share.

$

10.88

$

5.74

$

(9.67

)

$

14.55

Average equivalent Class A shares outstanding

1,611,760

1,634,962

1,617,325

1,637,378

Average equivalent Class B shares outstanding

2,417,640,311

2,452,442,401

2,425,986,839

2,456,067,007

Note: Per share amounts for the Class B shares are 1/1,500th of those shown for the Class A.

(1) Generally Accepted Accounting Principles (“GAAP”) require that we include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our earnings statements. In the table above, investment gains/losses in 2020 include a gain of $34.5 billion in the second quarter and a loss of $19.7 billion in the first six months and in 2019 include a gain of $7.1 billion in the second quarter and $22.2 billion in the first six months due to changes during the second quarter and the first six months in the unrealized gains that existed in our equity security investment holdings. Investment gains/losses in 2020 also include after-tax realized losses on sales of investments of $3.5 billion during the second quarter and $2.6 billion during the first six months. In 2019, investment gains/losses include after-tax realized gains of $662 million during the second quarter and $1.1 billion during the first six months.

The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.

(2) Includes $9.8 billion attributable to impairments of goodwill and certain identifiable intangible assets recorded in connection with Berkshire’s acquisition of Precision Castparts Corp. in 2016.

An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).

Second Quarter

First Six Months

2020

2019

2020

2019

Insurance-underwriting*

$

806

$

353

$

1,169

$

742

Insurance-investment income

1,368

1,366

2,754

2,603

Railroad, utilities and energy

1,764

1,945

3,515

3,803

Other businesses

1,449

2,487

3,487

4,687

Other

126

(12

)

498

(141

)

Operating earnings

$

5,513

$

6,139

$

11,423

$

11,694

* One unusual item to note occurred during the second quarter: On April 8, 2020, GEICO initiated a $2.5 billion “give-back” to policyholders with respect to policies renewed and newly issued policies during the six month period beginning on April 8, 2020. For accounting purposes, the “give-back” will be spread over the twelve month period beginning on April 8, 2020. The effect was to increase GEICO’s underwriting profits during the second quarter that will lead to less favorable results – even perhaps underwriting losses – in the third and fourth quarters. Further details are set forth in our 10-Q.

Approximately $5.1 billion was used to repurchase Berkshire shares during the second quarter bringing the six month total to $6.7 billion. At June 30, 2020, insurance float (the net liabilities we assume under insurance contracts) was approximately $131 billion, an increase of $2 billion since yearend 2019.

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 and impairments of goodwill and intangible assets.

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, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our periodic earnings statements. In sum, investment gains/losses for any particular period are not indicative of quarterly business performance.

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Berkshire Hathaway First Quarter Earnings

Berkshire’s operating results for the first quarters of 2020 and 2019 are summarized in the following paragraphs. However, we urge investors and reporters to read our 10-Q, which has been posted at www.berkshirehathaway.comThe limited information that follows in this press release is not adequate for making an informed investment judgment.

Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the first quarters of 2020 and 2019 are summarized below. Earnings are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).

First Quarter

2020

2019

Net earnings (loss) attributable to Berkshire shareholders

$

(49,746

)

$

21,661

Net earnings (loss) includes:

Investment and derivative gains (losses) –

Investments

(54,517

)

15,498

Derivatives

(1,100

)

608

(55,617

)

16,106

Operating earnings

5,871

5,555

Net earnings (loss) attributable to Berkshire shareholders

$

(49,746

)

$

21,661

Net earnings (loss) per average equivalent Class A Share

$

(30,653

)

$

13,209

Net earnings (loss) per average equivalent Class B Share

$

(20.44

)

$

8.81

Average equivalent Class A shares outstanding

1,622,889

1,639,821

Average equivalent Class B shares outstanding

2,434,333,367

2,459,731,886

Due to a change in Generally Accepted Accounting Principles (“GAAP”) in 2018, we are required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our earnings statements. In the table above, investment gains/losses include a loss of approximately $55.5 billion in the first quarter of 2020 and a gain of approximately $15.1 billion in the first quarter of 2019 due to changes during the first quarters of 2020 and 2019 in the amount of unrealized gains that existed in our equity security investment holdings. Investment gains (losses) also include after-tax realized gains on sales of investments of approximately $965 million and $392 million in the first quarters of 2020 and 2019, respectively.

The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.

An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).

First Quarter

2020

2019

Insurance-underwriting

$

363

$

389

Insurance-investment income

1,386

1,237

Railroad, utilities and energy

1,751

1,858

Other businesses

2,038

2,200

Other

333

(129

)

Operating earnings

$

5,871

$

5,555

At March 31, 2020, insurance float (the net liabilities we assume under insurance contracts) was approximately $130 billion, an increase of approximately $1 billion since yearend 2019.

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, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are now required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our periodic earnings statements. In sum, investment 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 insurance and reinsurance, utilities and energy, freight rail transportation, 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.

Berkshire Hathaway Releases Third Quarter Results

(BRK.A), (BRK.B)

Berkshire’s operating results for the third quarter and first nine months of 2019 and 2018 are summarized in the following paragraphs. However, we urge investors and reporters to read our 10-Q, which has been posted at www.berkshirehathaway.comThe limited information that follows in this press release is not adequate for making an informed investment judgment.

Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the third quarter and first nine months of 2019 and 2018 are summarized below. Earnings are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).

Third Quarter

First Nine Months

2019

2018

2019

2018

Net earnings attributable to Berkshire shareholders

$

16,524

$

18,540

$

52,258

$

29,413

Net earnings includes:

Investment and derivative gains/losses –

Investments

8,481

11,552

31,745

10,113

Derivatives

185

108

961

239

8,666

11,660

32,706

10,352

Operating earnings

7,858

6,880

19,552

19,061

Net earnings attributable to Berkshire shareholders

$

16,524

$

18,540

$

52,258

$

29,413

Net earnings per average equivalent Class A Share

$

10,119

$

11,280

$

31,944

$

17,885

Net earnings per average equivalent Class B Share

$

6.75

$

7.52

$

21.30

$

11.92

Average equivalent Class A shares outstanding

1,633,002

1,643,556

1,635,903

1,644,519

Average equivalent Class B shares outstanding

2,449,502,430

2,465,333,662

2,453,854,768

2,466,777,764

Note: Per share amounts for the Class B shares are 1/1,500th of those shown for the Class A.

Due to a change in Generally Accepted Accounting Principles (“GAAP”) in 2018, we are required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our earnings statements. In the table above, investment gains/losses in 2019 include gains of approximately $8.0 billion in the third quarter and approximately $30.1 billion in the first nine months and in 2018 include gains of approximately $10.2 billion in the third quarter and approximately $7.5 billion in the first nine months due to changes during the third quarter and during the first nine months in the unrealized gains that existed in our equity security investment holdings. Investment gains/losses also include after-tax realized gains on sales of investments of approximately $513 million and $995 million during the third quarters of 2019 and 2018, respectively, and gains of approximately $1.6 billion and $2.3 billion during the first nine months of 2019 and 2018, respectively.

The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.

An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).

Third Quarter

First Nine Months

2019

2018

2019

2018

Insurance-underwriting

$

440

$

441

$

1,182

$

1,791

Insurance-investment income

1,484

1,239

4,087

3,393

Railroad, utilities and energy

2,644

2,484

6,447

6,104

Other businesses

2,455

2,411

7,142

7,024

Other

835

305

694

749

Operating earnings

$

7,858

$

6,880

$

19,552

$

19,061

At September 30, 2019, insurance float (the net liabilities we assume under insurance contracts) was approximately $127 billion, an increase of $4 billion since yearend 2018.

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, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are now required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our periodic earnings statements. In sum, investment 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 insurance and reinsurance, utilities and energy, freight rail transportation, 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.