x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended June 30, 2011
|
|
OR
|
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from to
|
Delaware
|
47-0813844
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
Large accelerated filer x
|
Accelerated filer ¨
|
Non-accelerated filer ¨
|
Smaller reporting company ¨
|
Class A — 939,981
|
|
Class B — 1,066,954,104
|
Page No.
|
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2
|
||
3
|
||
4
|
||
5
|
||
5
|
||
6-19
|
||
20-33
|
||
33
|
||
33
|
||
34
|
||
34
|
||
34
|
||
34
|
||
34
|
||
34
|
||
35
|
||
35
|
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Insurance and Other:
|
||||||||
Cash and cash equivalents
|
$ | 43,193 | $ | 34,767 | ||||
Investments:
|
||||||||
Fixed maturity securities
|
34,813 | 33,803 | ||||||
Equity securities
|
66,364 | 59,819 | ||||||
Other
|
13,121 | 19,333 | ||||||
Receivables
|
19,396 | 20,917 | ||||||
Inventories
|
7,960 | 7,101 | ||||||
Property, plant and equipment
|
15,645 | 15,741 | ||||||
Goodwill
|
27,999 | 27,891 | ||||||
Other
|
14,488 | 13,529 | ||||||
242,979 | 232,901 | |||||||
Railroad, Utilities and Energy:
|
||||||||
Cash and cash equivalents
|
2,804 | 2,557 | ||||||
Property, plant and equipment
|
79,307 | 77,385 | ||||||
Goodwill
|
20,095 | 20,084 | ||||||
Other
|
12,729 | 13,579 | ||||||
114,935 | 113,605 | |||||||
Finance and Financial Products:
|
||||||||
Cash and cash equivalents
|
1,894 | 903 | ||||||
Investments in fixed maturity securities
|
1,041 | 1,080 | ||||||
Other investments
|
2,817 | 3,676 | ||||||
Loans and finance receivables
|
14,199 | 15,226 | ||||||
Goodwill
|
1,031 | 1,031 | ||||||
Other
|
3,800 | 3,807 | ||||||
24,782 | 25,723 | |||||||
$ | 382,696 | $ | 372,229 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Insurance and Other:
|
||||||||
Losses and loss adjustment expenses
|
$ | 65,060 | $ | 60,075 | ||||
Unearned premiums
|
9,630 | 7,997 | ||||||
Life, annuity and health insurance benefits
|
8,892 | 8,565 | ||||||
Accounts payable, accruals and other liabilities
|
16,494 | 15,826 | ||||||
Notes payable and other borrowings
|
10,161 | 12,471 | ||||||
110,237 | 104,934 | |||||||
Railroad, Utilities and Energy:
|
||||||||
Accounts payable, accruals and other liabilities
|
12,081 | 12,367 | ||||||
Notes payable and other borrowings
|
32,276 | 31,626 | ||||||
44,357 | 43,993 | |||||||
Finance and Financial Products:
|
||||||||
Accounts payable, accruals and other liabilities
|
1,143 | 1,168 | ||||||
Derivative contract liabilities
|
8,086 | 8,371 | ||||||
Notes payable and other borrowings
|
14,280 | 14,477 | ||||||
23,509 | 24,016 | |||||||
Income taxes, principally deferred
|
37,809 | 36,352 | ||||||
Total liabilities
|
215,912 | 209,295 | ||||||
Shareholders’ equity:
|
||||||||
Common stock
|
8 | 8 | ||||||
Capital in excess of par value
|
37,771 | 37,533 | ||||||
Accumulated other comprehensive income
|
21,106 | 20,583 | ||||||
Retained earnings
|
104,122 | 99,194 | ||||||
Berkshire Hathaway shareholders’ equity
|
163,007 | 157,318 | ||||||
Noncontrolling interests
|
3,777 | 5,616 | ||||||
Total shareholders’ equity
|
166,784 | 162,934 | ||||||
$ | 382,696 | $ | 372,229 |
Second Quarter
|
First Six Months
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Revenues:
|
||||||||||||||||
Insurance and Other:
|
||||||||||||||||
Insurance premiums earned
|
$ | 8,949 | $ | 6,864 | $ | 16,431 | $ | 14,290 | ||||||||
Sales and service revenues
|
18,336 | 17,210 | 35,108 | 32,741 | ||||||||||||
Interest, dividend and other investment income
|
1,426 | 1,514 | 2,703 | 2,809 | ||||||||||||
Investment gains/losses
|
1,128 | 381 | 1,214 | 1,696 | ||||||||||||
Other-than-temporary impairment losses on investments
|
— | — | (506 | ) | — | |||||||||||
29,839 | 25,969 | 54,950 | 51,536 | |||||||||||||
Railroad, Utilities and Energy:
|
||||||||||||||||
Operating revenues
|
7,436 | 6,724 | 14,813 | 11,734 | ||||||||||||
Other
|
32 | 42 | 68 | 82 | ||||||||||||
7,468 | 6,766 | 14,881 | 11,816 | |||||||||||||
Finance and Financial Products:
|
||||||||||||||||
Interest, dividend and other investment income
|
359 | 401 | 757 | 802 | ||||||||||||
Investment gains/losses
|
161 | 2 | 174 | 5 | ||||||||||||
Derivative gains/losses
|
(184 | ) | (2,176 | ) | 87 | (1,765 | ) | |||||||||
Other
|
631 | 747 | 1,145 | 1,352 | ||||||||||||
967 | (1,026 | ) | 2,163 | 394 | ||||||||||||
38,274 | 31,709 | 71,994 | 63,746 | |||||||||||||
Costs and expenses:
|
||||||||||||||||
Insurance and Other:
|
||||||||||||||||
Insurance losses and loss adjustment expenses
|
6,262 | 3,917 | 12,280 | 8,103 | ||||||||||||
Life, annuity and health insurance benefits
|
976 | 887 | 1,991 | 2,379 | ||||||||||||
Insurance underwriting expenses
|
1,720 | 1,344 | 3,445 | 2,747 | ||||||||||||
Cost of sales and services
|
14,955 | 14,192 | 28,814 | 27,098 | ||||||||||||
Selling, general and administrative expenses
|
2,122 | 1,915 | 4,157 | 3,754 | ||||||||||||
Interest expense
|
70 | 68 | 137 | 135 | ||||||||||||
26,105 | 22,323 | 50,824 | 44,216 | |||||||||||||
Railroad, Utilities and Energy:
|
||||||||||||||||
Cost of sales and operating expenses
|
5,651 | 5,060 | 11,223 | 8,892 | ||||||||||||
Interest expense
|
427 | 394 | 852 | 741 | ||||||||||||
6,078 | 5,454 | 12,075 | 9,633 | |||||||||||||
Finance and Financial Products:
|
||||||||||||||||
Interest expense
|
165 | 175 | 331 | 354 | ||||||||||||
Other
|
661 | 819 | 1,265 | 1,507 | ||||||||||||
826 | 994 | 1,596 | 1,861 | |||||||||||||
33,009 | 28,771 | 64,495 | 55,710 | |||||||||||||
Earnings before income taxes
|
5,265 | 2,938 | 7,499 | 8,036 | ||||||||||||
Income tax expense
|
1,725 | 848 | 2,354 | 2,184 | ||||||||||||
Earnings from equity method investment
|
— | — | — | 50 | ||||||||||||
Net earnings
|
3,540 | 2,090 | 5,145 | 5,902 | ||||||||||||
Less: Earnings attributable to noncontrolling interests
|
123 | 122 | 217 | 301 | ||||||||||||
Net earnings attributable to Berkshire Hathaway
|
$ | 3,417 | $ | 1,968 | $ | 4,928 | $ | 5,601 | ||||||||
Average common shares outstanding *
|
1,649,052 | 1,647,175 | 1,648,732 | 1,623,171 | ||||||||||||
Net earnings per share attributable to Berkshire Hathaway shareholders *
|
$ | 2,072 | $ | 1,195 | $ | 2,989 | $ | 3,451 |
*
|
Average shares outstanding include average Class A common shares and average Class B common shares determined on an equivalent Class A common stock basis. Net earnings per common share attributable to Berkshire Hathaway shown above represents net earnings per equivalent Class A common share. Net earnings per Class B common share is equal to one-fifteen-hundredth (1/1,500) of such amount.
|
First Six Months
|
||||||||
2011
|
2010
|
|||||||
(Unaudited)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$ | 5,145 | $ | 5,902 | ||||
Adjustments to reconcile net earnings to operating cash flows:
|
||||||||
Investment (gains) losses and other-than-temporary impairment losses
|
(882 | ) | (1,701 | ) | ||||
Depreciation
|
2,276 | 2,015 | ||||||
Other
|
149 | 103 | ||||||
Changes in operating assets and liabilities before business acquisitions:
|
||||||||
Losses and loss adjustment expenses
|
4,332 | (103 | ) | |||||
Deferred charges reinsurance assumed
|
(645 | ) | 237 | |||||
Unearned premiums
|
1,580 | 1,050 | ||||||
Receivables and originated loans
|
(1,981 | ) | (2,691 | ) | ||||
Derivative contract assets and liabilities
|
(294 | ) | 1,584 | |||||
Income taxes
|
599 | (301 | ) | |||||
Other assets and liabilities
|
(296 | ) | 765 | |||||
Net cash flows from operating activities
|
9,983 | 6,860 | ||||||
Cash flows from investing activities:
|
||||||||
Purchases of fixed maturity securities
|
(4,227 | ) | (4,510 | ) | ||||
Purchases of equity securities
|
(4,453 | ) | (3,282 | ) | ||||
Sales of fixed maturity securities
|
1,355 | 3,150 | ||||||
Redemptions and maturities of fixed maturity securities
|
3,518 | 3,327 | ||||||
Sales of equity securities
|
209 | 2,710 | ||||||
Redemptions of other investments
|
9,345 | — | ||||||
Purchases of loans and finance receivables
|
(1,511 | ) | (441 | ) | ||||
Principal collections on loans and finance receivables
|
2,494 | 366 | ||||||
Acquisitions of businesses, net of cash acquired
|
(172 | ) | (15,363 | ) | ||||
Purchases of property, plant and equipment
|
(3,444 | ) | (2,716 | ) | ||||
Other
|
79 | (141 | ) | |||||
Net cash flows from investing activities
|
3,193 | (16,900 | ) | |||||
Cash flows from financing activities:
|
||||||||
Proceeds from borrowings of insurance and other businesses
|
51 | 8,149 | ||||||
Proceeds from borrowings of railroad, utilities and energy businesses
|
1,540 | 750 | ||||||
Proceeds from borrowings of finance businesses
|
1,527 | 1,037 | ||||||
Repayments of borrowings of insurance and other businesses
|
(2,237 | ) | (322 | ) | ||||
Repayments of borrowings of railroad, utilities and energy businesses
|
(618 | ) | (218 | ) | ||||
Repayments of borrowings of finance businesses
|
(1,676 | ) | (1,680 | ) | ||||
Change in short term borrowings, net
|
(524 | ) | (61 | ) | ||||
Acquisitions of noncontrolling interests and other
|
(1,769 | ) | (74 | ) | ||||
Net cash flows from financing activities
|
(3,706 | ) | 7,581 | |||||
Effects of foreign currency exchange rate changes
|
194 | (146 | ) | |||||
Increase (decrease) in cash and cash equivalents
|
9,664 | (2,605 | ) | |||||
Cash and cash equivalents at beginning of year *
|
38,227 | 30,558 | ||||||
Cash and cash equivalents at end of first six months *
|
$ | 47,891 | $ | 27,953 | ||||
* Cash and cash equivalents are comprised of the following:
|
||||||||
Beginning of year—
|
||||||||
Insurance and Other
|
$ | 34,767 | $ | 28,223 | ||||
Railroad, Utilities and Energy
|
2,557 | 429 | ||||||
Finance and Financial Products
|
903 | 1,906 | ||||||
$ | 38,227 | $ | 30,558 | |||||
End of first six months—
|
||||||||
Insurance and Other
|
$ | 43,193 | $ | 25,164 | ||||
Railroad, Utilities and Energy
|
2,804 | 1,986 | ||||||
Finance and Financial Products
|
1,894 | 803 | ||||||
$ | 47,891 | $ | 27,953 |
Berkshire Hathaway shareholders’ equity
|
||||||||||||||||||||
Common stock
and capital in
excess of par
value
|
Accumulated
other
comprehensive
income
|
Retained
earnings
|
Total
|
Non-
controlling
interests
|
||||||||||||||||
Balance at December 31, 2009
|
$ | 27,082 | $ | 17,793 | $ | 86,227 | $ | 131,102 | $ | 4,683 | ||||||||||
Net earnings
|
— | — | 5,601 | 5,601 | 301 | |||||||||||||||
Other comprehensive income, net
|
— | (4,944 | ) | — | (4,944 | ) | (57 | ) | ||||||||||||
Issuance of common stock and other transactions
|
11,016 | — | — | 11,016 | — | |||||||||||||||
Changes in noncontrolling interests:
|
||||||||||||||||||||
Interests acquired and other transactions
|
(13 | ) | 1 | — | (12 | ) | (176 | ) | ||||||||||||
Balance at June 30, 2010
|
$ | 38,085 | $ | 12,850 | $ | 91,828 | $ | 142,763 | $ | 4,751 | ||||||||||
Balance at December 31, 2010
|
$ | 37,541 | $ | 20,583 | $ | 99,194 | $ | 157,318 | $ | 5,616 | ||||||||||
Net earnings
|
— | — | 4,928 | 4,928 | 217 | |||||||||||||||
Other comprehensive income, net
|
— | 447 | — | 447 | 20 | |||||||||||||||
Issuance of common stock and other transactions
|
377 | — | — | 377 | — | |||||||||||||||
Changes in noncontrolling interests:
|
||||||||||||||||||||
Interests acquired and other transactions
|
(139 | ) | 76 | — | (63 | ) | (2,076 | ) | ||||||||||||
Balance at June 30, 2011
|
$ | 37,779 | $ | 21,106 | $ | 104,122 | $ | 163,007 | $ | 3,777 |
Second Quarter
|
First Six Months
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Comprehensive income attributable to Berkshire Hathaway:
|
||||||||||||||||
Net earnings
|
$ | 3,417 | $ | 1,968 | $ | 4,928 | $ | 5,601 | ||||||||
Other comprehensive income:
|
||||||||||||||||
Net change in unrealized appreciation of investments
|
(54 | ) | (9,032 | ) | 598 | (5,902 | ) | |||||||||
Applicable income taxes
|
40 | 3,179 | (177 | ) | 2,069 | |||||||||||
Reclassification of investment appreciation in earnings
|
(1,353 | ) | (376 | ) | (920 | ) | (711 | ) | ||||||||
Applicable income taxes
|
474 | 132 | 322 | 249 | ||||||||||||
Foreign currency translation
|
205 | (466 | ) | 644 | (901 | ) | ||||||||||
Applicable income taxes
|
(22 | ) | 24 | (35 | ) | 24 | ||||||||||
Prior service cost and actuarial gains/losses of defined benefit plans
|
15 | 12 | 11 | 63 | ||||||||||||
Applicable income taxes
|
(4 | ) | (1 | ) | (4 | ) | (14 | ) | ||||||||
Other, net
|
(39 | ) | 71 | 8 | 179 | |||||||||||
Other comprehensive income, net
|
(738 | ) | (6,457 | ) | 447 | (4,944 | ) | |||||||||
Comprehensive income attributable to Berkshire Hathaway
|
$ | 2,679 | $ | (4,489 | ) | $ | 5,375 | $ | 657 | |||||||
Comprehensive income of noncontrolling interests
|
$ | 138 | $ | 45 | $ | 237 | $ | 244 |
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
June 30, 2011
|
||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies
|
$ | 2,225 | $ | 43 | $ | — | $ | 2,268 | ||||||||
States, municipalities and political subdivisions
|
3,083 | 219 | — | 3,302 | ||||||||||||
Foreign governments
|
13,264 | 206 | (46 | ) | 13,424 | |||||||||||
Corporate bonds
|
11,468 | 2,537 | (23 | ) | 13,982 | |||||||||||
Mortgage-backed securities
|
2,573 | 317 | (12 | ) | 2,878 | |||||||||||
$ | 32,613 | $ | 3,322 | $ | (81 | ) | $ | 35,854 | ||||||||
December 31, 2010
|
||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies
|
$ | 2,151 | $ | 48 | $ | (2 | ) | $ | 2,197 | |||||||
States, municipalities and political subdivisions
|
3,356 | 225 | — | 3,581 | ||||||||||||
Foreign governments
|
11,721 | 242 | (51 | ) | 11,912 | |||||||||||
Corporate bonds
|
11,773 | 2,304 | (23 | ) | 14,054 | |||||||||||
Mortgage-backed securities
|
2,838 | 312 | (11 | ) | 3,139 | |||||||||||
$ | 31,839 | $ | 3,131 | $ | (87 | ) | $ | 34,883 |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Insurance and other
|
$ | 34,813 | $ | 33,803 | ||||
Finance and financial products
|
1,041 | 1,080 | ||||||
$ | 35,854 | $ | 34,883 |
Due in one
year or less
|
Due after one
year through
five years
|
Due after five
years through
ten years
|
Due after
ten years
|
Mortgage-backed
securities
|
Total
|
|||||||||||||||||||
Amortized cost
|
$ | 8,314 | $ | 14,485 | $ | 4,578 | $ | 2,663 | $ | 2,573 | $ | 32,613 | ||||||||||||
Fair value
|
8,515 | 15,801 | 5,428 | 3,232 | 2,878 | 35,854 |
Cost Basis
|
Unrealized
Gains
|
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
June 30, 2011
|
||||||||||||||||
Banks, insurance and finance
|
$ | 15,562 | $ | 10,334 | $ | (688 | ) | $ | 25,208 | |||||||
Consumer products
|
13,227 | 13,607 | — | 26,834 | ||||||||||||
Commercial, industrial and other
|
10,716 | 4,830 | (3 | ) | 15,543 | |||||||||||
$ | 39,505 | $ | 28,771 | $ | (691 | ) | $ | 67,585 | ||||||||
December 31, 2010
|
||||||||||||||||
Banks, insurance and finance
|
$ | 15,519 | $ | 9,549 | $ | (454 | ) | $ | 24,614 | |||||||
Consumer products
|
13,551 | 12,410 | (212 | ) | 25,749 | |||||||||||
Commercial, industrial and other
|
6,474 | 4,682 | (6 | ) | 11,150 | |||||||||||
$ | 35,544 | $ | 26,641 | $ | (672 | ) | $ | 61,513 |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Insurance and other
|
$ | 66,364 | $ | 59,819 | ||||
Railroad, utilities and energy *
|
727 | 1,182 | ||||||
Finance and financial products *
|
494 | 512 | ||||||
$ | 67,585 | $ | 61,513 |
*
|
Included in Other assets.
|
Cost
|
Unrealized
Gains
|
Fair
Value
|
Carrying
Value
|
|||||||||||||
June 30, 2011
|
||||||||||||||||
Other fixed maturity and equity securities:
|
||||||||||||||||
Insurance and other
|
$ | 11,809 | $ | 2,396 | $ | 14,205 | $ | 13,121 | ||||||||
Finance and financial products
|
2,198 | 631 | 2,829 | 2,817 | ||||||||||||
$ | 14,007 | $ | 3,027 | $ | 17,034 | $ | 15,938 | |||||||||
December 31, 2010
|
||||||||||||||||
Other fixed maturity and equity securities:
|
||||||||||||||||
Insurance and other
|
$ | 15,700 | $ | 4,758 | $ | 20,458 | $ | 19,333 | ||||||||
Finance and financial products
|
2,742 | 947 | 3,689 | 3,676 | ||||||||||||
$ | 18,442 | $ | 5,705 | $ | 24,147 | $ | 23,009 |
Second Quarter
|
First Six Months
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Fixed maturity securities —
|
||||||||||||||||
Gross gains from sales and other disposals
|
$ | 94 | $ | 270 | $ | 176 | $ | 568 | ||||||||
Gross losses from sales and other disposals
|
(4 | ) | — | (4 | ) | (3 | ) | |||||||||
Equity and other securities —
|
||||||||||||||||
Gross gains from sales and other disposals
|
1,267 | 123 | 1,268 | 335 | ||||||||||||
Gross losses from sales and other disposals
|
(4 | ) | (17 | ) | (14 | ) | (189 | ) | ||||||||
Other
|
(64 | ) | 7 | (38 | ) | 990 | ||||||||||
$ | 1,289 | $ | 383 | $ | 1,388 | $ | 1,701 |
Insurance and other
|
$ | 1,128 | $ | 381 | $ | 1,214 | $ | 1,696 | ||||||||
Finance and financial products
|
161 | 2 | 174 | 5 | ||||||||||||
$ | 1,289 | $ | 383 | $ | 1,388 | $ | 1,701 |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Insurance premiums receivable
|
$ | 7,336 | $ | 6,342 | ||||
Reinsurance recoverable on unpaid losses
|
2,961 | 2,735 | ||||||
Trade and other receivables
|
9,481 | 12,223 | ||||||
Allowances for uncollectible accounts
|
(382 | ) | (383 | ) | ||||
$ | 19,396 | $ | 20,917 |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Consumer installment loans and finance receivables
|
$ | 13,734 | $ | 14,042 | ||||
Commercial loans and finance receivables
|
839 | 1,557 | ||||||
Allowances for uncollectible loans
|
(374 | ) | (373 | ) | ||||
$ | 14,199 | $ | 15,226 |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Raw materials
|
$ | 1,207 | $ | 1,066 | ||||
Work in process and other
|
638 | 509 | ||||||
Finished manufactured goods
|
2,423 | 2,180 | ||||||
Goods acquired for resale
|
3,692 | 3,346 | ||||||
$ | 7,960 | $ | 7,101 |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Balance at beginning of year
|
$ | 49,006 | $ | 33,972 | ||||
Acquisition of BNSF
|
— | 14,803 | ||||||
Other
|
119 | 231 | ||||||
Balance at end of period
|
$ | 49,125 | $ | 49,006 |
June 30, 2011
|
December 31, 2010
|
|||||||||||||||
Gross carrying
amount
|
Accumulated
amortization
|
Gross carrying
amount
|
Accumulated
amortization
|
|||||||||||||
Insurance and other
|
$ | 7,023 | $ | 2,033 | $ | 6,944 | $ | 1,816 | ||||||||
Railroad, utilities and energy
|
2,087 | 470 | 2,082 | 306 | ||||||||||||
$ | 9,110 | $ | 2,503 | $ | 9,026 | $ | 2,122 | |||||||||
Trademarks and trade names
|
$ | 2,033 | $ | 192 | $ | 2,027 | $ | 166 | ||||||||
Patents and technology
|
2,970 | 1,215 | 2,922 | 1,013 | ||||||||||||
Customer relationships
|
2,682 | 709 | 2,676 | 612 | ||||||||||||
Other
|
1,425 | 387 | 1,401 | 331 | ||||||||||||
$ | 9,110 | $ | 2,503 | $ | 9,026 | $ | 2,122 |
Ranges of
estimated useful life
|
June 30,
2011
|
December 31,
2010
|
|||||||||
Land
|
— | $ | 760 | $ | 744 | ||||||
Buildings and improvements
|
3 – 40 years
|
4,842 | 4,661 | ||||||||
Machinery and equipment
|
3 – 25 years
|
11,707 | 11,573 | ||||||||
Furniture, fixtures and other
|
3 – 20 years
|
2,061 | 1,932 | ||||||||
Assets held for lease
|
12 –30 years
|
5,838 | 5,832 | ||||||||
25,208 | 24,742 | ||||||||||
Accumulated depreciation
|
(9,563 | ) | (9,001 | ) | |||||||
$ | 15,645 | $ | 15,741 |
Ranges of
estimated useful life
|
June 30,
2011
|
December 31,
2010
|
|||||||||
Railroad:
|
|||||||||||
Land
|
— | $ | 5,913 | $ | 5,901 | ||||||
Track structure and other roadway
|
5 – 100 years
|
35,952 | 35,463 | ||||||||
Locomotives, freight cars and other equipment
|
5 – 37 years
|
4,757 | 4,329 | ||||||||
Construction in progress
|
— | 747 | 453 | ||||||||
Utilities and energy:
|
|||||||||||
Utility generation, distribution and transmission system
|
5 – 85 years
|
38,542 | 37,643 | ||||||||
Interstate pipeline assets
|
3 – 67 years
|
5,940 | 5,906 | ||||||||
Independent power plants and other assets
|
3 – 30 years
|
1,100 | 1,097 | ||||||||
Construction in progress
|
— | 1,769 | 1,456 | ||||||||
94,720 | 92,248 | ||||||||||
Accumulated depreciation
|
(15,413 | ) | (14,863 | ) | |||||||
$ | 79,307 | $ | 77,385 |
June 30, 2011
|
December 31, 2010
|
|||||||||||||||||||||||
Assets (3)
|
Liabilities
|
Notional
Value
|
Assets (3)
|
Liabilities
|
Notional
Value
|
|||||||||||||||||||
Equity index put options
|
$ | — | $ | 6,761 | $ | 35,089 | (1) | $ | — | $ | 6,712 | $ | 33,891 | (1) | ||||||||||
Credit default contracts:
|
||||||||||||||||||||||||
High yield indexes
|
— | 110 | 4,841 | (2) | — | 159 | 4,893 | (2) | ||||||||||||||||
States/municipalities
|
— | 1,038 | 16,042 | (2) | — | 1,164 | 16,042 | (2) | ||||||||||||||||
Individual corporate
|
88 | — | 3,565 | (2) | 84 | — | 3,565 | (2) | ||||||||||||||||
Other
|
370 | 216 | 341 | 375 | ||||||||||||||||||||
Counterparty netting
|
(81 | ) | (39 | ) | (82 | ) | (39 | ) | ||||||||||||||||
$ | 377 | $ | 8,086 | $ | 343 | $ | 8,371 |
(1)
|
Represents the aggregate undiscounted amount payable at the contract expiration dates assuming that the value of each index is zero at the contract expiration date.
|
(2)
|
Represents the maximum undiscounted future value of losses payable under the contracts. The number of losses required to exhaust contract limits under substantially all of the contracts is dependent on the loss recovery rate related to the specific obligor at the time of a default.
|
(3)
|
Included in Other assets of finance and financial products businesses.
|
Second Quarter
|
First Six Months
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Equity index put options
|
$ | (271 | ) | $ | (1,797 | ) | $ | (48 | ) | $ | (1,619 | ) | ||||
Credit default contracts
|
142 | (320 | ) | 212 | (112 | ) | ||||||||||
Other
|
(55 | ) | (59 | ) | (77 | ) | (34 | ) | ||||||||
$ | (184 | ) | $ | (2,176 | ) | $ | 87 | $ | (1,765 | ) |
First Six Months
|
||||||||
2011
|
2010
|
|||||||
Cash paid during the period for:
|
||||||||
Income taxes
|
$ | 802 | $ | 2,319 | ||||
Interest of insurance and other businesses
|
115 | 80 | ||||||
Interest of railroad, utilities and energy businesses
|
904 | 790 | ||||||
Interest of finance and financial products businesses
|
340 | 361 | ||||||
Non-cash investing and financing activities:
|
||||||||
Liabilities assumed in connection with acquisition of BNSF
|
— | 30,968 | ||||||
Common stock issued in connection with acquisition of BNSF
|
— | 10,577 | ||||||
Common stock issued in connection with acquisition of noncontrolling interests in Wesco Financial Corporation
|
245 | — |
Average
Interest Rate
|
June 30,
2011
|
December 31, 2010
|
||||||||||
Insurance and other:
|
||||||||||||
Issued by Berkshire parent company due 2012-2047
|
1.9 | % | $ | 6,287 | $ | 8,360 | ||||||
Short-term subsidiary borrowings
|
0.3 | % | 1,532 | 1,682 | ||||||||
Other subsidiary borrowings due 2011-2036
|
5.3 | % | 2,342 | 2,429 | ||||||||
$ | 10,161 | $ | 12,471 |
Average
Interest Rate
|
June 30,
2011
|
December 31,
2010
|
||||||||||
Railroad, utilities and energy:
|
||||||||||||
Issued by MidAmerican Energy Holdings Company (“MidAmerican”) and its subsidiaries:
|
||||||||||||
MidAmerican senior unsecured debt due 2012-2037
|
6.1 | % | $ | 5,371 | $ | 5,371 | ||||||
Subsidiary and other debt due 2011-2039
|
5.7 | % | 14,389 | 14,275 | ||||||||
Issued by BNSF due 2011-2097
|
6.0 | % | 12,516 | 11,980 | ||||||||
$ | 32,276 | $ | 31,626 |
Average
Interest Rate
|
June 30,
2011
|
December 31,
2010
|
||||||||||
Finance and financial products:
|
||||||||||||
Issued by Berkshire Hathaway Finance Corporation (“BHFC”) due 2012-2040
|
4.3 | % | $ | 11,529 | $ | 11,535 | ||||||
Issued by other subsidiaries due 2011-2036
|
5.1 | % | 2,751 | 2,942 | ||||||||
$ | 14,280 | $ | 14,477 |
Carrying Value
|
Fair Value
|
|||||||||||||||
June 30,
2011
|
December 31,
2010
|
June 30,
2011
|
December 31,
2010
|
|||||||||||||
Investments in fixed maturity securities
|
$ | 35,854 | $ | 34,883 | $ | 35,854 | $ | 34,883 | ||||||||
Investments in equity securities
|
67,585 | 61,513 | 67,585 | 61,513 | ||||||||||||
Other investments
|
15,938 | 23,009 | 17,034 | 24,147 | ||||||||||||
Loans and finance receivables
|
14,199 | 15,226 | 13,436 | 14,453 | ||||||||||||
Derivative contract assets (1)
|
519 | 574 | 519 | 574 | ||||||||||||
Notes payable and other borrowings:
|
||||||||||||||||
Insurance and other
|
10,161 | 12,471 | 10,424 | 12,705 | ||||||||||||
Railroad, utilities and energy
|
32,276 | 31,626 | 34,619 | 33,932 | ||||||||||||
Finance and financial products
|
14,280 | 14,477 | 15,061 | 15,191 | ||||||||||||
Derivative contract liabilities:
|
||||||||||||||||
Railroad, utilities and energy (2)
|
464 | 621 | 464 | 621 | ||||||||||||
Finance and financial products
|
8,086 | 8,371 | 8,086 | 8,371 |
(1)
|
Included in Other assets
|
(2)
|
Included in Accounts payable, accruals and other liabilities
|
Total
Fair Value
|
Quoted
Prices
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable Inputs
(Level 3)
|
|||||||||||||
June 30, 2011
|
||||||||||||||||
Investments in fixed maturity securities:
|
||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies
|
$ | 2,268 | $ | 694 | $ | 1,571 | $ | 3 | ||||||||
States, municipalities and political subdivisions
|
3,302 | — | 3,302 | — | ||||||||||||
Foreign governments
|
13,424 | 5,554 | 7,749 | 121 | ||||||||||||
Corporate bonds
|
13,982 | 32 | 13,297 | 653 | ||||||||||||
Mortgage-backed securities
|
2,878 | — | 2,878 | — | ||||||||||||
Investments in equity securities
|
67,585 | 67,463 | 82 | 40 | ||||||||||||
Other investments
|
10,704 | — | — | 10,704 | ||||||||||||
Net derivative contract (assets)/liabilities:
|
||||||||||||||||
Railroad, utilities and energy
|
322 | 4 | 85 | 233 | ||||||||||||
Finance and financial products:
|
||||||||||||||||
Equity index put options
|
6,761 | — | — | 6,761 | ||||||||||||
Credit default obligations
|
1,060 | — | — | 1,060 | ||||||||||||
Other
|
(112 | ) | — | (26 | ) | (86 | ) | |||||||||
December 31, 2010
|
||||||||||||||||
Investments in fixed maturity securities:
|
||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies
|
$ | 2,197 | $ | 535 | $ | 1,658 | $ | 4 | ||||||||
States, municipalities and political subdivisions
|
3,581 | — | 3,581 | — | ||||||||||||
Foreign governments
|
11,912 | 5,633 | 6,167 | 112 | ||||||||||||
Corporate bonds
|
14,054 | 23 | 13,346 | 685 | ||||||||||||
Mortgage-backed securities
|
3,139 | — | 3,139 | — | ||||||||||||
Investments in equity securities
|
61,513 | 61,390 | 88 | 35 | ||||||||||||
Other investments
|
17,589 | — | — | 17,589 | ||||||||||||
Net derivative contract (assets)/liabilities:
|
||||||||||||||||
Railroad, utilities and energy
|
390 | 7 | 52 | 331 | ||||||||||||
Finance and financial products:
|
||||||||||||||||
Equity index put options
|
6,712 | — | — | 6,712 | ||||||||||||
Credit default obligations
|
1,239 | — | — | 1,239 | ||||||||||||
Other
|
77 | — | 137 | (60 | ) |
Investments
in fixed
maturity
securities
|
Investments
in equity
securities
|
Other
investments
|
Net
derivative
contract
liabilities
|
|||||||||||||
Balance at December 31, 2009
|
$ | 918 | $ | 304 | $ | 18,562 | $ | (9,196 | ) | |||||||
Gains (losses) included in:
|
||||||||||||||||
Earnings
|
— | — | — | (1,777 | ) | |||||||||||
Other comprehensive income
|
20 | (2 | ) | (1,521 | ) | — | ||||||||||
Regulatory assets and liabilities
|
— | — | — | (49 | ) | |||||||||||
Purchases, sales, issuances and settlements
|
9 | (1 | ) | — | 89 | |||||||||||
Transfers into (out of) Level 3
|
(137 | ) | (260 | ) | — | — | ||||||||||
Balance at June 30, 2010
|
$ | 810 | $ | 41 | $ | 17,041 | $ | (10,933 | ) | |||||||
Balance at December 31, 2010
|
$ | 801 | $ | 35 | $ | 17,589 | $ | (8,222 | ) | |||||||
Gains (losses) included in:
|
||||||||||||||||
Earnings
|
— | — | — | 194 | ||||||||||||
Other comprehensive income
|
3 | 5 | (1,385 | ) | — | |||||||||||
Regulatory assets and liabilities
|
— | — | — | 83 | ||||||||||||
Acquisitions
|
6 | — | — | (34 | ) | |||||||||||
Dispositions
|
(33 | ) | — | — | 11 | |||||||||||
Transfers into (out of) Level 3
|
— | — | (5,500 | ) | — | |||||||||||
Balance at June 30, 2011
|
$ | 777 | $ | 40 | $ | 10,704 | $ | (7,968 | ) |
Class A, $5 Par Value
|
Class B, $0.0033 Par Value
|
|||||||
(1,650,000 shares authorized)
Shares Issued and Outstanding
|
(3,225,000,000 shares authorized)
Shares Issued and Outstanding
|
|||||||
Balance at December 31, 2010
|
947,460 | 1,050,990,468 | ||||||
Shares issued to acquire noncontrolling interests of Wesco Financial Corporation
|
— | 3,253,472 | ||||||
Conversions of Class A common stock to Class B common stock and exercises of replacement stock options issued in the BNSF acquisition
|
(6,698 | ) | 11,522,505 | |||||
Balance at June 30, 2011
|
940,762 | 1,065,766,445 |
Second Quarter
|
First Six Months
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Operating Businesses:
|
||||||||||||||||
Insurance group:
|
||||||||||||||||
Premiums earned:
|
||||||||||||||||
GEICO
|
$ | 3,818 | $ | 3,554 | $ | 7,493 | $ | 7,008 | ||||||||
General Re
|
1,444 | 1,373 | 2,881 | 2,813 | ||||||||||||
Berkshire Hathaway Reinsurance Group
|
3,268 | 1,546 | 5,212 | 3,653 | ||||||||||||
Berkshire Hathaway Primary Group
|
419 | 391 | 845 | 816 | ||||||||||||
Investment income
|
1,410 | 1,500 | 2,676 | 2,802 | ||||||||||||
Total insurance group
|
10,359 | 8,364 | 19,107 | 17,092 | ||||||||||||
Burlington Northern Santa Fe
|
4,790 | 4,094 | 9,323 | 6,167 | * | |||||||||||
Finance and financial products
|
991 | 1,149 | 1,904 | 2,126 | ||||||||||||
Marmon
|
1,781 | 1,562 | 3,455 | 2,959 | ||||||||||||
McLane Company
|
8,444 | 8,293 | 16,211 | 15,723 | ||||||||||||
MidAmerican
|
2,678 | 2,672 | 5,558 | 5,649 | ||||||||||||
Other businesses
|
8,009 | 7,185 | 15,217 | 13,711 | ||||||||||||
37,052 | 33,319 | 70,775 | 63,427 | |||||||||||||
Reconciliation of segments to consolidated amount:
|
||||||||||||||||
Investment and derivative gains/losses
|
1,105 | (1,793 | ) | 969 | (64 | ) | ||||||||||
Eliminations and other
|
117 | 183 | 250 | 383 | ||||||||||||
$ | 38,274 | $ | 31,709 | $ | 71,994 | $ | 63,746 |
Second Quarter
|
First Six Months
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Operating Businesses:
|
||||||||||||||||
Insurance group:
|
||||||||||||||||
Underwriting gain (loss):
|
||||||||||||||||
GEICO
|
$ | 159 | $ | 329 | $ | 496 | $ | 628 | ||||||||
General Re
|
132 | 222 | (194 | ) | 183 | |||||||||||
Berkshire Hathaway Reinsurance Group
|
(354 | ) | 117 | (1,697 | ) | 169 | ||||||||||
Berkshire Hathaway Primary Group
|
54 | 48 | 110 | 81 | ||||||||||||
Net investment income
|
1,404 | 1,494 | 2,665 | 2,777 | ||||||||||||
Total insurance group
|
1,395 | 2,210 | 1,380 | 3,838 | ||||||||||||
Burlington Northern Santa Fe
|
1,070 | 974 | 2,035 | 1,450 | * | |||||||||||
Finance and financial products
|
177 | 164 | 333 | 285 | ||||||||||||
Marmon
|
273 | 219 | 495 | 409 | ||||||||||||
McLane Company
|
105 | 109 | 187 | 189 | ||||||||||||
MidAmerican
|
320 | 338 | 771 | 733 | ||||||||||||
Other businesses
|
976 | 860 | 1,651 | 1,443 | ||||||||||||
4,316 | 4,874 | 6,852 | 8,347 | |||||||||||||
Reconciliation of segments to consolidated amount:
|
||||||||||||||||
Investment and derivative gains/losses
|
1,105 | (1,793 | ) | 969 | (64 | ) | ||||||||||
Interest expense, excluding interest allocated to operating businesses
|
(50 | ) | (53 | ) | (101 | ) | (102 | ) | ||||||||
Eliminations and other
|
(106 | ) | (90 | ) | (221 | ) | (145 | ) | ||||||||
$ | 5,265 | $ | 2,938 | $ | 7,499 | $ | 8,036 |
*
|
Includes revenues and earnings from February 13, 2010.
|
Second Quarter
|
First Six Months
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Insurance – underwriting
|
$ | (7 | ) | $ | 462 | $ | (828 | ) | $ | 688 | ||||||
Insurance – investment income
|
995 | 1,088 | 1,947 | 2,076 | ||||||||||||
Railroad
|
690 | 603 | 1,297 | 885 | * | |||||||||||
Utilities and energy
|
215 | 233 | 516 | 456 | ||||||||||||
Manufacturing, service and retailing
|
789 | 671 | 1,347 | 1,148 | ||||||||||||
Finance and financial products
|
110 | 103 | 206 | 178 | ||||||||||||
Other
|
(88 | ) | (86 | ) | (188 | ) | (135 | ) | ||||||||
Investment and derivative gains/losses
|
713 | (1,106 | ) | 631 | 305 | |||||||||||
Net earnings attributable to Berkshire Hathaway
|
$ | 3,417 | $ | 1,968 | $ | 4,928 | $ | 5,601 |
*
|
BNSF’s earnings are for the period from February 13 through June 30.
|
Second Quarter
|
First Six Months
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Underwriting gain (loss) attributable to:
|
||||||||||||||||
GEICO
|
$ | 159 | $ | 329 | $ | 496 | $ | 628 | ||||||||
General Re
|
132 | 222 | (194 | ) | 183 | |||||||||||
Berkshire Hathaway Reinsurance Group
|
(354 | ) | 117 | (1,697 | ) | 169 | ||||||||||
Berkshire Hathaway Primary Group
|
54 | 48 | 110 | 81 | ||||||||||||
Pre-tax underwriting gain (loss)
|
(9 | ) | 716 | (1,285 | ) | 1,061 | ||||||||||
Income taxes and noncontrolling interests
|
(2 | ) | 254 | (457 | ) | 373 | ||||||||||
Net underwriting gain (loss)
|
$ | (7 | ) | $ | 462 | $ | (828 | ) | $ | 688 |
Second Quarter
|
First Six Months
|
|||||||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||||||||
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||||
Premiums earned
|
$ | 3,818 | 100.0 | $ | 3,554 | 100.0 | $ | 7,493 | 100.0 | $ | 7,008 | 100.0 | ||||||||||||||||
Losses and loss adjustment expenses
|
2,954 | 77.4 | 2,604 | 73.3 | 5,607 | 74.8 | 5,136 | 73.3 | ||||||||||||||||||||
Underwriting expenses
|
705 | 18.4 | 621 | 17.4 | 1,390 | 18.6 | 1,244 | 17.7 | ||||||||||||||||||||
Total losses and expenses
|
3,659 | 95.8 | 3,225 | 90.7 | 6,997 | 93.4 | 6,380 | 91.0 | ||||||||||||||||||||
Pre-tax underwriting gain
|
$ | 159 | $ | 329 | $ | 496 | $ | 628 |
Premiums earned
|
Pre-tax underwriting gain (loss)
|
|||||||||||||||||||||||||||||||
Second Quarter
|
First Six Months
|
Second Quarter
|
First Six Months
|
|||||||||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||||||||
Property/casualty
|
$ | 755 | $ | 697 | $ | 1,470 | $ | 1,446 | $ | 41 | $ | 164 | $ | (283 | ) | $ | 103 | |||||||||||||||
Life/health
|
689 | 676 | 1,411 | 1,367 | 91 | 58 | 89 | 80 | ||||||||||||||||||||||||
$ | 1,444 | $ | 1,373 | $ | 2,881 | $ | 2,813 | $ | 132 | $ | 222 | $ | (194 | ) | $ | 183 |
Premiums earned
|
Pre-tax underwriting gain/loss
|
|||||||||||||||||||||||||||||||
Second Quarter
|
First Six Months
|
Second Quarter
|
First Six Months
|
|||||||||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||||||||
Catastrophe and individual risk
|
$ | 170 | $ | 164 | $ | 359 | $ | 326 | $ | 108 | $ | 109 | $ | (165 | ) | $ | 227 | |||||||||||||||
Retroactive reinsurance
|
1,676 | 205 | 1,819 | 352 | (100 | ) | (74 | ) | (255 | ) | (229 | ) | ||||||||||||||||||||
Other multi-line property/casualty
|
910 | 832 | 2,043 | 1,671 | (320 | ) | 173 | (1,230 | ) | 300 | ||||||||||||||||||||||
Life and annuity
|
512 | 345 | 991 | 1,304 | (42 | ) | (91 | ) | (47 | ) | (129 | ) | ||||||||||||||||||||
$ | 3,268 | $ | 1,546 | $ | 5,212 | $ | 3,653 | $ | (354 | ) | $ | 117 | $ | (1,697 | ) | $ | 169 |
Second Quarter
|
First Six Months
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Investment income before taxes, noncontrolling interests and equity method earnings
|
$ | 1,404 | $ | 1,494 | $ | 2,665 | $ | 2,777 | ||||||||
Income taxes and noncontrolling interests
|
409 | 406 | 718 | 751 | ||||||||||||
Net investment income before equity method earnings
|
995 | 1,088 | 1,947 | 2,026 | ||||||||||||
Equity method earnings
|
— | — | — | 50 | ||||||||||||
Net investment income
|
$ | 995 | $ | 1,088 | $ | 1,947 | $ | 2,076 |
June 30,
|
Dec. 31,
|
|||||||
2011
|
2010
|
|||||||
Cash and cash equivalents
|
$ | 33,161 | $ | 24,818 | ||||
Equity securities
|
66,045 | 59,517 | ||||||
Fixed maturity securities
|
33,196 | 32,889 | ||||||
Other
|
13,121 | 19,133 | ||||||
$ | 145,523 | $ | 136,357 |
Amortized
cost
|
Unrealized
gains/losses
|
Fair
value
|
||||||||||
U.S. Treasury, U.S. government corporations and agencies
|
$ | 2,225 | $ | 43 | $ | 2,268 | ||||||
States, municipalities and political subdivisions
|
3,083 | 219 | 3,302 | |||||||||
Foreign governments
|
11,649 | 161 | 11,810 | |||||||||
Corporate bonds, investment grade
|
5,027 | 569 | 5,596 | |||||||||
Corporate bonds, non-investment grade
|
5,892 | 1,893 | 7,785 | |||||||||
Mortgage-backed securities
|
2,181 | 254 | 2,435 | |||||||||
$ | 30,057 | $ | 3,139 | $ | 33,196 |
Second Quarter
|
First Six Months
|
Feb. 13, 2010 to
|
First Six Months
|
|||||||||||||||||
2011
|
2010
|
2011
|
June 30, 2010
|
2010
|
||||||||||||||||
Revenues
|
$ | 4,790 | $ | 4,094 | $ | 9,323 | $ | 6,167 | $ | 7,958 | ||||||||||
Operating expenses
|
3,582 | 3,010 | 7,014 | 4,544 | 5,886 | |||||||||||||||
Interest expense
|
138 | 110 | 274 | 173 | 245 | |||||||||||||||
3,720 | 3,120 | 7,288 | 4,717 | 6,131 | ||||||||||||||||
Pre-tax earnings
|
1,070 | 974 | 2,035 | 1,450 | 1,827 | |||||||||||||||
Income taxes
|
380 | 371 | 738 | 565 | 718 | |||||||||||||||
Net earnings
|
$ | 690 | $ | 603 | $ | 1,297 | $ | 885 | $ | 1,109 |
Second Quarter
|
First Six Months | |||||||||||||||||||||||||||||||
Revenues
|
Earnings
|
Revenues |
Earnings
|
|||||||||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||||||||
PacifiCorp
|
$ | 1,105 | $ | 1,073 | $ | 183 | $ | 205 | $ | 2,237 | $ | 2,202 | $ | 373 | $ | 397 | ||||||||||||||||
MidAmerican Energy Company
|
809 | 828 | 47 | 45 | 1,794 | 1,969 | 118 | 128 | ||||||||||||||||||||||||
Natural gas pipelines
|
206 | 188 | 43 | 42 | 503 | 487 | 198 | 193 | ||||||||||||||||||||||||
U.K. utilities
|
239 | 206 | 97 | 86 | 492 | 398 | 219 | 141 | ||||||||||||||||||||||||
Real estate brokerage
|
293 | 347 | 23 | 36 | 484 | 551 | 13 | 29 | ||||||||||||||||||||||||
Other
|
26 | 30 | 7 | 4 | 48 | 42 | 10 | 4 | ||||||||||||||||||||||||
$ | 2,678 | $ | 2,672 | $ | 5,558 | $ | 5,649 | |||||||||||||||||||||||||
Earnings before corporate interest and income taxes
|
400 | 418 | 931 | 892 | ||||||||||||||||||||||||||||
Corporate interest
|
(80 | ) | (80 | ) | (160 | ) | (159 | ) | ||||||||||||||||||||||||
Interest on Berkshire junior debt
|
(4 | ) | (8 | ) | (9 | ) | (18 | ) | ||||||||||||||||||||||||
Income taxes and noncontrolling interests
|
(80 | ) | (77 | ) | (195 | ) | (220 | ) | ||||||||||||||||||||||||
Net earnings
|
$ | 236 | $ | 253 | $ | 567 | $ | 495 | ||||||||||||||||||||||||
Earnings attributable to Berkshire Hathaway *
|
$ | 215 | $ | 233 | $ | 516 | $ | 456 | ||||||||||||||||||||||||
Debt owed to others at June 30
|
$ | 19,760 | $ | 19,444 | ||||||||||||||||||||||||||||
Debt owed to Berkshire at June 30
|
143 | 286 |
*
|
Net of noncontrolling interests and includes interest earned by Berkshire (net of related income taxes).
|
Second Quarter
|
First Six Months
|
|||||||||||||||||||||||||||||||
Revenues
|
Earnings
|
Revenues
|
Earnings
|
|||||||||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||||||||
Marmon
|
$ | 1,781 | $ | 1,562 | $ | 273 | $ | 219 | $ | 3,455 | $ | 2,959 | $ | 495 | $ | 409 | ||||||||||||||||
McLane Company
|
8,444 | 8,293 | 105 | 109 | 16,211 | 15,723 | 187 | 189 | ||||||||||||||||||||||||
Other manufacturing
|
5,201 | 4,632 | 643 | 545 | 9,754 | 8,709 | 1,087 | 877 | ||||||||||||||||||||||||
Other service
|
2,081 | 1,871 | 287 | 287 | 4,049 | 3,645 | 487 | 506 | ||||||||||||||||||||||||
Retailing
|
727 | 682 | 46 | 28 | 1,414 | 1,357 | 77 | 60 | ||||||||||||||||||||||||
$ | 18,234 | $ | 17,040 | $ | 34,883 | $ | 32,393 | |||||||||||||||||||||||||
Pre-tax earnings
|
$ | 1,354 | $ | 1,188 | $ | 2,333 | $ | 2,041 | ||||||||||||||||||||||||
Income taxes and noncontrolling interests
|
565 | 517 | 986 | 893 | ||||||||||||||||||||||||||||
$ | 789 | $ | 671 | $ | 1,347 | $ | 1,148 |
Second Quarter
|
First Six Months
|
|||||||||||||||||||||||||||||||
Revenues
|
Earnings
|
Revenues
|
Earnings
|
|||||||||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||||||||
Manufactured housing and finance
|
$ | 750 | $ | 923 | $ | 44 | $ | 58 | $ | 1,421 | $ | 1,689 | $ | 76 | $ | 90 | ||||||||||||||||
Furniture/transportation equipment leasing
|
182 | 162 | 40 | 13 | 351 | 312 | 61 | 15 | ||||||||||||||||||||||||
Other
|
59 | 64 | 93 | 93 | 132 | 125 | 196 | 180 | ||||||||||||||||||||||||
$ | 991 | $ | 1,149 | $ | 1,904 | $ | 2,126 | |||||||||||||||||||||||||
Pre-tax earnings
|
$ | 177 | $ | 164 | $ | 333 | $ | 285 | ||||||||||||||||||||||||
Income taxes and noncontrolling interests
|
67 | 61 | 127 | 107 | ||||||||||||||||||||||||||||
$ | 110 | $ | 103 | $ | 206 | $ | 178 |
Second Quarter
|
First Six Months
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Investment gains/losses
|
$ | 1,289 | $ | 383 | $ | 1,388 | $ | 1,701 | ||||||||
Other-than-temporary impairment losses on investments
|
— | — | (506 | ) | — | |||||||||||
Derivative gains/losses
|
(184 | ) | (2,176 | ) | 87 | (1,765 | ) | |||||||||
Gains/losses before income taxes and noncontrolling interests
|
1,105 | (1,793 | ) | 969 | (64 | ) | ||||||||||
Income taxes and noncontrolling interests
|
392 | (687 | ) | 338 | (369 | ) | ||||||||||
Net gains/losses
|
$ | 713 | $ | (1,106 | ) | $ | 631 | $ | 305 |
Mine Safety Act
|
|||||||||||||||||||||||||
Total
|
|||||||||||||||||||||||||
Section
|
Value of
|
||||||||||||||||||||||||
Section 104
|
Section
|
107(a) |
Proposed
|
||||||||||||||||||||||
Significant &
|
Section
|
104(d) |
Section
|
Imminent
|
Section
|
MSHA
|
Legal
|
||||||||||||||||||
Substantial
|
104(b) |
Citations &
|
110(b)(2) |
Danger
|
104(e) |
Assessments
|
Actions
|
||||||||||||||||||
Coal Mine or Coal Processing Facility
|
Citations
|
Orders
|
Orders
|
Citations
|
Orders
|
Notice
|
(in thousands)
|
Pending
|
|||||||||||||||||
Deer Creek
|
7 | — | — | — | — | — | $ | 20 | 11 | ||||||||||||||||
Bridger (surface)
|
6 | — | — | — | — | — | 9 | 7 | |||||||||||||||||
Bridger (underground)
|
26 | 1 | — | — | — | — | 66 | 16 | |||||||||||||||||
Cottonwood Preparatory Plant
|
1 | — | — | — | — | — | — | — | |||||||||||||||||
Wyodak Coal Crushing Facility
|
— | — | — | — | — | — | — | — |
a. Exhibits
|
|
12 |
Calculation of Ratio of Consolidated Earnings to Consolidated Fixed Charges
|
31.1
|
Rule 13a-14(a)/15d-14(a) Certifications
|
31.2
|
Rule 13a-14(a)/15d-14(a) Certifications
|
32.1
|
Section 1350 Certifications
|
32.2
|
Section 1350 Certifications
|
101
|
The following financial information from Berkshire Hathaway Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, formatted in XBRL (Extensible Business Reporting Language) includes: (i) the Consolidated Balance Sheets as of June 30, 2011 and December 31, 2010, (ii) the Consolidated Statements of Earnings for each of the three-month and six-month periods ended June 30, 2011 and 2010, (iii) the Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2011 and 2010, (iv) the Consolidated Statements of Changes in Shareholders’ Equity for the six-month periods ended June 30, 2011 and 2010, Consolidated Statements of Comprehensive Income for each of the three-month and six-month periods ended June 30, 2011 and 2010, and (v) the Notes to Consolidated Financial Statements, tagged in summary and detail.
|
BERKSHIRE HATHAWAY INC.
|
|
(Registrant)
|
|
Date: August 5, 2011
|
/S/ MARC D. HAMBURG
|
(Signature)
|
|
Marc D. Hamburg,
Senior Vice President and
Principal Financial Officer
|
Year Ended December 31,
|
||||||||||||||||||||||||
Six Months
Ended
June 30, 2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
|||||||||||||||||||
Net earnings attributable to Berkshire Hathaway
|
$ | 4,928 | $ | 12,967 | $ | 8,055 | $ | 4,994 | $ | 13,213 | $ | 11,015 | ||||||||||||
Income tax expense
|
2,354 | 5,607 | 3,538 | 1,978 | 6,594 | 5,505 | ||||||||||||||||||
Earnings attributable to noncontrolling interests
|
217 | 527 | 386 | 602 | 354 | 258 | ||||||||||||||||||
Earnings from equity method investments
|
— | (50 | ) | (427 | ) | — | — | — | ||||||||||||||||
Dividends from equity method investees
|
— | 20 | 132 | — | — | — | ||||||||||||||||||
Fixed charges
|
1,584 | 3,084 | 2,279 | 2,276 | 2,202 | 1,979 | ||||||||||||||||||
Earnings available for fixed charges
|
$ | 9,083 | $ | 22,155 | $ | 13,963 | $ | 9,850 | $ | 22,363 | $ | 18,757 | ||||||||||||
Fixed charges
|
||||||||||||||||||||||||
Interest on indebtedness (including amortization of debt discount and expense)
|
$ | 1,320 | $ | 2,558 | $ | 1,992 | $ | 1,963 | $ | 1,910 | $ | 1,724 | ||||||||||||
Rentals representing interest and other
|
264 | 526 | 287 | 313 | 292 | 255 | ||||||||||||||||||
$ | 1,584 | $ | 3,084 | $ | 2,279 | $ | 2,276 | $ | 2,202 | $ | 1,979 | |||||||||||||
Ratio of earnings to fixed charges
|
5.73 | x | 7.18 | x | 6.13 | x | 4.33 | x | 10.16 | x | 9.48 | x |
1.
|
I have reviewed this quarterly report on Form 10-Q of Berkshire Hathaway Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/S/ WARREN E. BUFFETT
|
|
Chairman—Principal Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Berkshire Hathaway Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/S/ MARC D. HAMBURG
|
|
Senior Vice President—Principal Financial Officer
|
(1)
|
the Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2011 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/S/ WARREN E. BUFFETT
|
|
Warren E. Buffett
|
|
Chairman and Chief Executive Officer
|
(1)
|
the Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2011 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/S/ MARC D. HAMBURG
|
|
Marc D. Hamburg
|
|
Senior Vice President and Chief Financial Officer
|
Investment gains/losses - Narrative (Detail) (USD $)
In Millions |
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
Goldman Sachs Group Inc [Member]
Cumulative Preferred Stock [Member]
Equity Securities [Member]
|
Jun. 30, 2011
Goldman Sachs Group Inc [Member]
Cumulative Preferred Stock [Member]
Equity Securities [Member]
|
Jun. 30, 2011
Equity Securities [Member]
|
Jun. 30, 2010
Equity Securities [Member]
|
Jun. 30, 2011
Equity Securities [Member]
|
Jun. 30, 2010
Equity Securities [Member]
|
Jun. 30, 2010
Burlington Northern Santa Fe [Member]
Other Investment Gain / Loss [Member]
|
Mar. 31, 2010
Burlington Northern Santa Fe [Member]
|
|
Investment gains/losses [Line Items] | ||||||||
Gains from sales and other disposals | $ 1,250 | $ 1,250 | $ 1,267 | $ 123 | $ 1,268 | $ 335 | ||
One-time holding gain related to the BNSF acquisition | $ 979 | $ 1,000 |
Consolidated Statements of Earnings (USD $)
In Millions, except Per Share data |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|||||||
Revenues: | ||||||||||
Investment gains/losses | $ 1,289 | $ 383 | $ 1,388 | $ 1,701 | ||||||
Total revenues | 38,274 | 31,709 | 71,994 | 63,746 | ||||||
Costs and expenses: | ||||||||||
Total costs and expenses | 33,009 | 28,771 | 64,495 | 55,710 | ||||||
Earnings before income taxes | 5,265 | 2,938 | 7,499 | 8,036 | ||||||
Income tax expense | 1,725 | 848 | 2,354 | 2,184 | ||||||
Earnings from equity method investment | 50 | |||||||||
Net earnings | 3,540 | 2,090 | 5,145 | 5,902 | ||||||
Less: Earnings attributable to noncontrolling interests | 123 | 122 | 217 | 301 | ||||||
Net earnings attributable to Berkshire Hathaway | 3,417 | 1,968 | 4,928 | 5,601 | ||||||
Average common shares outstanding | 1,649,052 | [1] | 1,647,175 | [1] | 1,648,732 | [1] | 1,623,171 | [1] | ||
Insurance and Other [Member]
|
||||||||||
Revenues: | ||||||||||
Insurance premiums earned | 8,949 | 6,864 | 16,431 | 14,290 | ||||||
Sales and service revenues | 18,336 | 17,210 | 35,108 | 32,741 | ||||||
Interest, dividend and other investment income | 1,426 | 1,514 | 2,703 | 2,809 | ||||||
Investment gains/losses | 1,128 | 381 | 1,214 | 1,696 | ||||||
Other-than-temporary impairment losses on investments | (506) | |||||||||
Total revenues | 29,839 | 25,969 | 54,950 | 51,536 | ||||||
Costs and expenses: | ||||||||||
Insurance losses and loss adjustment expenses | 6,262 | 3,917 | 12,280 | 8,103 | ||||||
Life, annuity and health insurance benefits | 976 | 887 | 1,991 | 2,379 | ||||||
Insurance underwriting expenses | 1,720 | 1,344 | 3,445 | 2,747 | ||||||
Cost of sales and services | 14,955 | 14,192 | 28,814 | 27,098 | ||||||
Selling, general and administrative expenses | 2,122 | 1,915 | 4,157 | 3,754 | ||||||
Interest expense | 70 | 68 | 137 | 135 | ||||||
Total costs and expenses | 26,105 | 22,323 | 50,824 | 44,216 | ||||||
Railroad, Utilities and Energy [Member]
|
||||||||||
Revenues: | ||||||||||
Operating revenues | 7,436 | 6,724 | 14,813 | 11,734 | ||||||
Other | 32 | 42 | 68 | 82 | ||||||
Total revenues | 7,468 | 6,766 | 14,881 | 11,816 | ||||||
Costs and expenses: | ||||||||||
Cost of sales and operating expenses | 5,651 | 5,060 | 11,223 | 8,892 | ||||||
Interest expense | 427 | 394 | 852 | 741 | ||||||
Total costs and expenses | 6,078 | 5,454 | 12,075 | 9,633 | ||||||
Finance and Financial Products [Member]
|
||||||||||
Revenues: | ||||||||||
Interest, dividend and other investment income | 359 | 401 | 757 | 802 | ||||||
Investment gains/losses | 161 | 2 | 174 | 5 | ||||||
Derivative gains/losses | (184) | (2,176) | 87 | (1,765) | ||||||
Other | 631 | 747 | 1,145 | 1,352 | ||||||
Total revenues | 967 | (1,026) | 2,163 | 394 | ||||||
Costs and expenses: | ||||||||||
Interest expense | 165 | 175 | 331 | 354 | ||||||
Other | 661 | 819 | 1,265 | 1,507 | ||||||
Total costs and expenses | $ 826 | $ 994 | $ 1,596 | $ 1,861 | ||||||
Class A [Member]
|
||||||||||
Net earnings per share attributable to Berkshire Hathaway shareholders: | ||||||||||
Net earnings per share attributable to Berkshire Hathaway shareholders | $ 2,072 | [1] | $ 1,195 | [1] | $ 2,989 | [1] | $ 3,451 | [1] | ||
|
Consolidated Statements of Earnings (Parenthetical) (Class B [Member])
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Class B [Member]
|
|
Ratio of earnings per Class B share to earnings per Class A share | 0.000667 |
Inventories (Detail) (USD $)
In Millions |
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Inventories [Line Items] | ||
Raw materials | $ 1,207 | $ 1,066 |
Work in process and other | 638 | 509 |
Finished manufactured goods | 2,423 | 2,180 |
Goods acquired for resale | 3,692 | 3,346 |
Total inventory | $ 7,960 | $ 7,101 |
Common stock
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock |
Note 16. Common stock
Changes
in issued and outstanding Berkshire common stock during the first
six months of 2011 are shown in the table below.
Class
B common stock possesses dividend and distribution rights equal to
one-fifteen-hundredth (1/1,500) of such rights of Class A
common stock. Each Class A common share is entitled to one
vote per share. Each Class B common share possesses voting rights
equivalent to one-ten-thousandth (1/10,000) of the voting
rights of a Class A share. Unless otherwise required under
Delaware General Corporation Law, Class A and Class B common
shares vote as a single class. Each share of Class A common
stock is convertible, at the option of the holder, into 1,500
shares of Class B common stock. Class B common stock is not
convertible into Class A common stock.
On
an equivalent Class A common stock basis, there were 1,651,273
shares outstanding as of June 30, 2011 and 1,648,120 shares
outstanding as of December 31, 2010. In addition to our common
stock, 1,000,000 shares of preferred stock are authorized, but none
of which are issued and outstanding.
|
Document and Entity Information
|
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2011
|
Jul. 28, 2011
Class A [Member]
|
Jul. 28, 2011
Class B [Member]
|
|
Document Information [Line Items] | |||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2011 | ||
Document Fiscal Year Focus | 2011 | ||
Document Fiscal Period Focus | Q2 | ||
Trading Symbol | BRKA | ||
Entity Registrant Name | BERKSHIRE HATHAWAY INC. | ||
Entity Central Index Key | 0001067983 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 939,981 | 1,066,954,104 |
Other investments - Narrative (Detail) (USD $)
|
1 Months Ended | 6 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 18, 2011
Goldman Sachs Group Inc [Member]
|
Dec. 31, 2008
Goldman Sachs Group Inc [Member]
Cumulative Preferred Stock [Member]
|
Jun. 30, 2011
Goldman Sachs Group Inc [Member]
Warrant [Member]
|
Dec. 31, 2008
Goldman Sachs Group Inc [Member]
Warrant [Member]
|
Dec. 31, 2008
Goldman Sachs Group Inc [Member]
Cumulative Perpetual Preferred Stock And Warrant [Member]
|
Dec. 31, 2008
General Electric Company [Member]
Cumulative Preferred Stock [Member]
|
Jun. 30, 2011
General Electric Company [Member]
Warrant [Member]
|
Dec. 31, 2008
General Electric Company [Member]
Warrant [Member]
|
Dec. 31, 2008
General Electric Company [Member]
Cumulative Perpetual Preferred Stock And Warrant [Member]
|
Jun. 30, 2011
Wm Wrigley Jr Company [Member]
Corporate Joint Venture [Member]
Senior Notes [Member]
|
Dec. 31, 2008
Wm Wrigley Jr Company [Member]
Subordinated Debt [Member]
|
Dec. 31, 2008
Wm Wrigley Jr Company [Member]
Preferred Stock [Member]
|
Jun. 30, 2011
Wm Wrigley Jr Company [Member]
Senior Notes [Member]
|
Dec. 31, 2009
Wm Wrigley Jr Company [Member]
Senior Notes [Member]
|
Jun. 30, 2011
The Dow Chemical Company [Member]
Cumulative Preferred Stock [Member]
|
Dec. 31, 2009
The Dow Chemical Company [Member]
Cumulative Preferred Stock [Member]
|
Jun. 30, 2011
Corporate Joint Venture [Member]
|
|
Other Investments [Line Items] | |||||||||||||||||
Investment owned, shares | 50,000 | 30,000 | 3,000,000 | ||||||||||||||
Investment owned, total cost | $ 5,000,000,000 | $ 3,000,000,000 | $ 2,100,000,000 | $ 3,000,000,000 | |||||||||||||
Conversion ratio of Series A Cumulative Convertible Perpetual Preferred Stock, shares | 24.201 | ||||||||||||||||
Preferred stock conversion price (per share) | $ 41.32 | ||||||||||||||||
Common stock threshold price, per share | $ 53.72 | ||||||||||||||||
Minimum number of trading days in a consecutive day period | 20 | ||||||||||||||||
Range of trading days in a consecutive day period, number of days | 30 | ||||||||||||||||
Investment in Preferred Stock, stated percent | 10.00% | 10.00% | 5.00% | 8.50% | |||||||||||||
Investment in Warrants to purchase common stock, number of shares | 43,478,260 | 134,831,460 | |||||||||||||||
Redemption value of Cumulative Perpetual Preferred Stock, per share | $ 110,000 | $ 110,000 | |||||||||||||||
Redemption value of Cumulative Perpetual Preferred Stock, aggregate value | 5,500,000,000 | 3,300,000,000 | |||||||||||||||
Proceeds from redemption of preferred stock | 5,500,000,000 | ||||||||||||||||
Exercise price for warrants, value | 5,000,000,000 | 3,000,000,000 | |||||||||||||||
Exercise price for warrants, value, per share | $ 115 | $ 22.25 | |||||||||||||||
Investment owned, face value | $ 200,000,000 | $ 4,400,000,000 | $ 800,000,000 | $ 1,000,000,000 | |||||||||||||
Investment in notes, stated percent | 11.45% | ||||||||||||||||
Economic interest | 50.00% |
Investments in equity securities (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in equity securities | Investments
in equity securities as of June 30, 2011 and December 31, 2010
are summarized based on the primary industry of the investee in the
table below (in millions).
Investments
in equity securities are reflected in the Consolidated Balance
Sheets as follows (in millions).
|
Other investments (Detail) (USD $)
In Millions |
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Insurance and Other [Member] | Fixed Maturity and Equity Securities [Member]
|
||
Other Investments [Line Items] | ||
Cost | $ 11,809 | $ 15,700 |
Unrealized Gains | 2,396 | 4,758 |
Fair Value | 14,205 | 20,458 |
Carrying Value | 13,121 | 19,333 |
Finance and Financial Products [Member] | Fixed Maturity and Equity Securities [Member]
|
||
Other Investments [Line Items] | ||
Cost | 2,198 | 2,742 |
Unrealized Gains | 631 | 947 |
Fair Value | 2,829 | 3,689 |
Carrying Value | 2,817 | 3,676 |
Fixed Maturity and Equity Securities [Member]
|
||
Other Investments [Line Items] | ||
Cost | 14,007 | 18,442 |
Unrealized Gains | 3,027 | 5,705 |
Fair Value | 17,034 | 24,147 |
Carrying Value | 15,938 | 23,009 |
Insurance and Other [Member]
|
||
Other Investments [Line Items] | ||
Carrying Value | 13,121 | 19,333 |
Finance and Financial Products [Member]
|
||
Other Investments [Line Items] | ||
Carrying Value | $ 2,817 | $ 3,676 |
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Investments in equity securities
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
|
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Investments in equity securities |
Note 5. Investments in equity
securities
Investments
in equity securities as of June 30, 2011 and December 31, 2010
are summarized based on the primary industry of the investee in the
table below (in millions).
Investments
in equity securities are reflected in the Consolidated Balance
Sheets as follows (in millions).
As
of June 30, 2011, there were no equity security investments that
were in a continuous unrealized loss position for more than twelve
months where other-than-temporary impairment (“OTTI”)
losses were not recorded. As of December 31, 2010 such
unrealized losses were $531 million.
In
the first quarter of 2011, we recorded OTTI losses of $506 million
related to certain of our investments in equity securities. The
OTTI losses recorded in earnings were offset by a reduction in
unrealized losses recorded in other comprehensive income resulting
in no impact on our consolidated shareholders’ equity.
Included in the OTTI losses was $337 million related to 103.6
million shares of our investment in Wells Fargo & Company
common stock. These shares had an aggregate original cost of $3,621
million. We also held an additional 255.4 million shares of Wells
Fargo which were acquired at an aggregate cost of $4,394 million.
These shares had an unrealized gain of $3,704 million as of March
31, 2011. Due to the length of time that certain of our Wells Fargo
shares were in a continuous unrealized loss position and because we
account for gains and losses on a specific identification basis,
accounting regulations required us to record the unrealized losses
in earnings. However, the unrealized gains are not reflected in
earnings but are instead recorded directly in shareholders’
equity as a component of accumulated other comprehensive
income.
|
Other investments (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Other Investments | Other
investments include fixed maturity and equity securities of The
Goldman Sachs Group, Inc. (“GS”), General Electric
Company (“GE”), Wm. Wrigley Jr. Company
(“Wrigley”) and The Dow Chemical Company
(“Dow”). A summary of other investments follows
(in millions).
|
Investments in fixed maturity securities - Amortized cost and estimated fair value of securities with fixed maturities (Detail) (USD $)
In Millions |
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Amortized cost and estimated fair value of securities with fixed maturities [Line Items] | ||
Due in one year or less - fair value | $ 8,515 | |
Due after one year through five years - fair value | 15,801 | |
Due after five years through ten years - fair value | 5,428 | |
Due after ten years - fair value | 3,232 | |
Mortgage-backed securities - fair value | 2,878 | |
Fair Value | 35,854 | 34,883 |
Due in one year or less - amortized cost | 8,314 | |
Due after one year through five years - amortized cost | 14,485 | |
Due after five years through ten years - amortized cost | 4,578 | |
Due after ten years - amortized cost | 2,663 | |
Mortgage-backed securities - amortized cost | 2,573 | |
Total - amortized cost | $ 32,613 | $ 31,839 |
Business segment data (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
|
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Schedule of Segment Revenues | Revenues
by business segment for the second quarter and first six months of
2011 and 2010 follow (in millions).
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Before Income Taxes Noncontrolling Interest and Equity Method Earnings | Earnings
before income taxes by business segment for the second quarter and
first six months of 2011 and 2010 follow (in
millions).
|
Investments in fixed maturity securities (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
|
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Schedule of investments in securities with fixed maturities | Investments
in securities with fixed maturities as of June 30, 2011 and
December 31, 2010 are summarized below
(in millions).
Investments
in fixed maturity securities are reflected in the Consolidated
Balance Sheets as follows (in millions).
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amortized cost and estimated fair value of securities with fixed maturities | The
amortized cost and estimated fair value of securities with fixed
maturities at June 30, 2011 are summarized below by
contractual maturity dates. Actual maturities will differ from
contractual maturities because issuers of certain of the securities
retain early call or prepayment rights. Amounts are
in millions.
|
Goodwill and other intangible assets
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and other intangible assets |
Note 10. Goodwill and other intangible
assets
A
reconciliation of the change in the carrying value of goodwill is
as follows (in millions).
Intangible
assets other than goodwill are included in other assets and are
summarized as follows (in millions).
Amortization
expense was $374 million for the first six months of 2011 and
$340 million for the first six months of 2010. Intangible
assets with indefinite lives as of June 30, 2011 and
December 31, 2010 were $1,640 million and $1,635 million,
respectively.
|
General
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
General |
Note 1. General
The
accompanying unaudited Consolidated Financial Statements include
the accounts of Berkshire Hathaway Inc. (“Berkshire” or
“Company”) consolidated with the accounts of all its
subsidiaries and affiliates in which Berkshire holds controlling
financial interests as of the financial statement date. In these
notes the terms “us,” “we,” or
“our” refer to Berkshire and its consolidated
subsidiaries. Reference is made to Berkshire’s
most recently issued Annual Report on Form 10-K (“Annual
Report”) that included information necessary or useful to
understanding Berkshire’s businesses and financial statement
presentations. Our significant accounting policies and practices
were presented as Note 1 to the Consolidated Financial Statements
included in the Annual Report. Certain immaterial amounts in 2010
have been reclassified to conform with the current year
presentation. Financial information in this Report reflects any
adjustments (consisting only of normal recurring adjustments) that
are, in the opinion of management, necessary to a fair statement of
results for the interim periods in accordance with accounting
principles generally accepted in the United States
(“GAAP”).
For
a number of reasons, our results for interim periods are not
normally indicative of results to be expected for the year. The
timing and magnitude of catastrophe losses incurred by insurance
subsidiaries and the estimation error inherent to the process of
determining liabilities for unpaid losses of insurance subsidiaries
can be relatively more significant to results of interim periods
than to results for a full year. Variations in the amount and
timing of investment gains/losses can cause significant variations
in periodic net earnings. Investment gains/losses are recorded when
investments are disposed or are other-than-temporarily impaired. In
addition, changes in the fair value of derivative
assets/liabilities associated with derivative contracts that are
not accounted for as hedging instruments can cause significant
variations in periodic net earnings.
|
Notes payable and other borrowings (Tables)
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Jun. 30, 2011
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Insurance and Other [Member]
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Schedule of short and long term outstanding debt disclosure | Notes
payable and other borrowings are summarized below
(in millions). The average interest rates shown in the
following tables are the weighted average interest rates on
outstanding debt as of June 30, 2011. Maturity date ranges are
based on borrowings as of June 30, 2011.
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Railroad, Utilities and Energy [Member]
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Schedule of short and long term outstanding debt disclosure |
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Finance and Financial Products [Member]
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Schedule of short and long term outstanding debt disclosure |
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Investment gains/losses
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Jun. 30, 2011
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Investment gains/losses |
Note 7. Investment gains/losses
Investment
gains/losses are summarized below (in millions).
Net
investment gains/losses are reflected in the Consolidated
Statements of Earnings as follows.
Equity
and other securities investment gains in the second quarter and
first six months of 2011 included $1.25 billion with respect to the
redemption of our GS Preferred investment. In 2010, other
investment gains included a one-time holding gain of $979 million
related to our BNSF acquisition in February.
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Derivative contracts
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Jun. 30, 2011
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Derivative contracts |
Note 12. Derivative contracts
Derivative
contracts are used primarily by our finance and financial products
businesses and our railroad, utilities and energy businesses. As of
June 30, 2011 and December 31, 2010, substantially all of the
derivative contracts of our finance and financial products
businesses are not designated as hedges for financial reporting
purposes. These contracts were initially entered into with the
expectation that the premiums received would exceed the amounts
ultimately paid to counterparties. Changes in the fair values of
such contracts are reported in earnings as derivative gains/losses.
A summary of derivative contracts of our finance and financial
products businesses follows (in millions).
A
summary of derivative gains/losses of our finance and financial
products businesses included in the Consolidated Statements of
Earnings are as follows (in millions).
The
equity index put option contracts are European style options
written on four major equity indexes. Future payments, if any,
under these contracts will be required if the underlying index
value is below the strike price at the contract expiration dates
which occur between June 2018 and January 2026. We received the
premiums on these contracts in full at the contract inception dates
and therefore we have no counterparty credit risk. We entered into
no new contracts in 2010 or 2011.
At
June 30, 2011, the aggregate intrinsic value (the undiscounted
liability assuming the contracts are settled on their future
expiration dates based on the June 30, 2011 index values and
foreign currency exchange rates) was approximately $3.9 billion.
However, these contracts may not be unilaterally terminated or
fully settled before the expiration dates and therefore the
ultimate amount of cash basis gains or losses on these contracts
may not be determined for many years. The remaining weighted
average life of all contracts was approximately 9.5 years at
June 30, 2011.
Our
credit default contracts pertain to various indexes of
non-investment grade (or “high yield”) corporate
issuers, as well as investment grade state/municipal and individual
corporate debt issuers. These contracts cover the loss in value of
specified debt obligations of the issuers arising from default
events, which are usually from their failure to make payments or
bankruptcy. Loss amounts are subject to aggregate contract limits.
We entered into no new contracts in 2010 or 2011.
The
high yield index contracts are comprised of specified North
American corporate issuers (usually 100 in number at inception)
whose obligations are rated below investment grade. High yield
contracts remaining in-force at June 30, 2011 expire in 2012
and 2013. State and municipality contracts are comprised of over
500 state and municipality issuers and had a weighted average
contract life at June 30, 2011 of approximately 9.7 years.
Potential obligations related to approximately 50% of the notional
value of the state and municipality contracts cannot be settled
before the maturity dates of the underlying obligations, which
range from 2019 to 2054.
Premiums
on the high yield index and state/municipality contracts were
received in full at the inception dates of the contracts and, as a
result, we have no counterparty credit risk. Our payment
obligations under certain of these contracts are on a first loss
basis. Losses under other contracts are subject to aggregate
deductibles that must be satisfied before we have any payment
obligations.
Individual
corporate credit default contracts primarily relate to issuers of
investment grade obligations. In most instances, premiums are due
from counterparties on a quarterly basis over the terms of the
contracts. As of June 30, 2011, all of the remaining contracts
in-force will expire in 2013.
With
limited exceptions, our equity index put option and credit default
contracts contain no collateral posting requirements with respect
to changes in either the fair value or intrinsic value of the
contracts and/or a downgrade of Berkshire’s credit ratings.
As of June 30, 2011, our collateral posting requirement under
contracts with collateral provisions was $25 million compared
to $31 million at December 31, 2010. As of June 30, 2011,
had Berkshire’s credit ratings (currently AA+ from
Standard & Poor’s and Aa2 from Moody’s) been
downgraded below either A- by Standard & Poor’s or
A3 by Moody’s an additional $1.1 billion would have been
required to be posted as collateral.
Our
railroad and regulated utility subsidiaries are exposed to
variations in the market prices in the purchases and sales of
natural gas and electricity and in the purchases of fuel.
Derivative instruments, including forward purchases and sales,
futures, swaps and options, are used to manage these price risks.
Unrealized gains and losses under the contracts of our regulated
utilities that are probable of recovery through rates are recorded
as a regulatory net asset or liability. Unrealized gains or losses
on contracts accounted for as cash flow or fair value hedges are
recorded in accumulated other comprehensive income or in net
earnings, as appropriate. Derivative contract assets included in
other assets of railroad, utilities and energy businesses were
$142 million and $231 million as of June 30, 2011 and
December 31, 2010, respectively. Derivative contract
liabilities included in accounts payable, accruals and other
liabilities of railroad, utilities and energy businesses were
$464 million as of June 30, 2011 and $621 million as of
December 31, 2010.
|
Receivables
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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Receivables |
Note 8. Receivables
Receivables
of insurance and other businesses are comprised of the following
(in millions).
As
of December 31, 2010, trade and other receivables included
approximately CHF 3.7 billion ($3.9 billion) related to
the redemption of an investment. The redemption proceeds were
received on January 10, 2011.
Loans
and finance receivables of finance and financial products
businesses are comprised of the following
(in millions).
Allowances
for uncollectible loans primarily relate to consumer installment
loans. Provisions for consumer loan losses were $161 million
in the first six months of 2011 and $178 million for the first six
months of 2010. Loan charge-offs, net of recoveries, were
$160 million in the first six months of 2011 and $176 million
for the first six months of 2010. Consumer loan amounts are net of
acquisition discounts of $550 million at June 30, 2011 and $580
million at December 31, 2010. At June 30, 2011, approximately 96%
of consumer installment loan balances were evaluated collectively
for impairment whereas about 84% of commercial loan balances were
evaluated individually for impairment.
As
a part of the evaluation process, credit quality indicators are
reviewed and loans are designated as performing or non-performing.
At June 30, 2011, approximately 98% of consumer installment
and commercial loan balances were determined to be performing and
approximately 93% of those balances were current as to payment
status.
|
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