Condensed Financial Information

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information

BERKSHIRE HATHAWAY INC. (Parent Company)

Condensed Financial Information

(Dollars in millions)

Schedule I

Balance Sheets

	December 31,
	2022		2021
Assets:
Cash and cash equivalents	$	2,777	$	18,797
Short-term investments in U.S. Treasury Bills		17,628		9,681
Investments in and advances to consolidated subsidiaries		462,030		486,862
Investment in The Kraft Heinz Company		12,937		13,112
Other assets		12		140
	$	495,384	$	528,592
Liabilities and Shareholders’ Equity:
Accounts payable, accrued interest and other liabilities	$	355	$	237
Income taxes, principally deferred		1,276		747
Notes payable and other borrowings		21,393		21,409
		23,024		22,393
Berkshire Hathaway shareholders’ equity		472,360		506,199
	$	495,384	$	528,592

Statements of Earnings and Comprehensive Income

	Year ended December 31,
	2022			2021			2020
Income items:
From consolidated subsidiaries:
Dividends and distributions	$	15,724		$	13,462		$	26,110
Undistributed earnings (losses)		(39,639	)		74,819			17,402
		(23,915	)		88,281			43,512
Investment gains (losses)		(34	)		35			(24	)
Equity in earnings of The Kraft Heinz Company		628			269			95
Other income		413			73			328
		(22,908	)		88,658			43,911
Cost and expense items:
General and administrative		131			136			194
Interest expense		513			444			489
Foreign exchange (gains) losses on non-U.S. Dollar denominated debt		(1,401	)		(1,281	)		970
Income tax expense (benefit)		668			(436	)		(263	)
		(89	)		(1,137	)		1,390
Net earnings (loss) attributable to Berkshire Hathaway shareholders		(22,819	)		89,795			42,521
Other comprehensive income attributable to Berkshire Hathaway shareholders		(2,564	)		216			1,000
Comprehensive income attributable to Berkshire Hathaway shareholders	$	(25,383	)	$	90,011		$	43,521

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,
	2022			2021			2020
Cash flows from operating activities:
Net earnings (loss) attributable to Berkshire Hathaway shareholders	$	(22,819	)	$	89,795		$	42,521
Adjustments to reconcile net earnings (loss) to operating cash flows:
Investment (gains) losses		34			(35	)		24
Undistributed (earnings) losses of consolidated subsidiaries		39,639			(74,819	)		(17,402	)
Non-cash dividends from subsidiaries		(7,220	)		(2,126	)		(8,296	)
Income taxes payable		661			(389	)		(72	)
Other		(1,833	)		(1,038	)		1,100
Net cash flows from operating activities		8,462			11,388			17,875
Cash flows from investing activities:
Investments in and advances to consolidated subsidiaries, net		(11,852	)		(174	)		(1,947	)
Purchases of U.S. Treasury Bills		(44,187	)		(34,988	)		(54,715	)
Sales and maturities of U.S. Treasury Bills		37,915			57,296			59,035
Other		128			—			11
Net cash flows from investing activities		(17,996	)		22,134			2,384
Cash flows from financing activities:
Proceeds from borrowings		1,970			2,174			2,923
Repayments of borrowings		(602	)		(2,167	)		(1,151	)
Acquisition of treasury stock		(7,854	)		(27,061	)		(24,706	)
Net cash flows from financing activities		(6,486	)		(27,054	)		(22,934	)
Increase (decrease) in cash and cash equivalents		(16,020	)		6,468			(2,675	)
Cash and cash equivalents at beginning of year		18,797			12,329			15,004
Cash and cash equivalents at end of year	$	2,777		$	18,797		$	12,329
Other cash flow information:
Income taxes paid	$	2,259		$	3,403		$	3,391
Interest paid		332			377			359

Note to Condensed Financial Information

Berkshire currently owns 26.6% of the outstanding shares of The Kraft Heinz Company (“Kraft Heinz”) common stock, which is accounted for pursuant to the equity method. See Note 5 to the Consolidated Financial Statements. On October 19, 2022, Berkshire acquired all of the outstanding common stock of Alleghany Corporation for $11.5 billion. See Note 2 to the Consolidated Financial Statements.

In January 2022, the Parent Company issued ¥128.5 billion (approximately $1.1 billion) of senior notes with maturity dates ranging from 2027 to 2052 and a weighted average interest rate of 0.5%. In December 2022, the Parent Company also issued ¥115.0 billion (approximately $840 million) of senior notes with maturity dates ranging from 2025 to 2052 and a weighted average interest rate of 1.1%. As of December 31, 2022, the Parent Company’s non-U.S. Dollar denominated borrowings included €6.9 billion and ¥1,029 billion par value 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. In the first two months of 2023, Berkshire repaid $1.1 billion of maturing senior notes. An additional $3.2 billion of Berkshire senior notes mature in March and April of 2023.

Parent Company debt maturities over the next five years are as follows: 2023—$4.3 billion; 2024—$1.9 billion; 2025—$2.0 billion; 2026—$3.2 billion and 2027—$2.1 billion. The Parent Company guarantees certain debt of subsidiaries, which aggregated approximately $21.7 billion at December 31, 2022 and was primarily debt issued by Berkshire Hathaway Finance Corporation. Such guarantees are an absolute, unconditional and irrevocable guarantee for the full and prompt payment when due of all present and future payment obligations. The Parent Company has also provided guarantees in connection with certain retroactive reinsurance contracts issued by subsidiaries. The amounts of subsidiary payments under these contracts, if any, is contingent upon the outcome of future events.