BERKSHIRE HATHAWAY INC.

(Parent Company)

Condensed Financial Information

(Dollars in millions)

Schedule I

Balance Sheets


	December 31,
	2017		2016
Assets:
Cash and cash equivalents	$	4,039	$	3,221
Short-term investments in U.S. Treasury Bills		13,132		8,220
Investments in fixed maturity and equity securities and other assets		79		59
Investments in and advances to/from consolidated subsidiaries		335,668		276,467
Investments in The Kraft Heinz Company		17,635		15,345

	$	370,553	$	303,312

Liabilities and Shareholders’ Equity:
Accounts payable, accrued interest and other liabilities	$	196	$	182
Income taxes, principally deferred		3,294		3,357
Notes payable and other borrowings		18,767		17,703

		22,257		21,242
Berkshire Hathaway shareholders’ equity		348,296		282,070

	$	370,553	$	303,312

Statements of Earnings and Comprehensive Income


	Year ended December 31,
	2017			2016		2015
Income items:
From consolidated subsidiaries:
Dividends	$	5,367		$	9,862	$	10,519
Undistributed earnings		37,832			13,264		8,508

		43,199			23,126		19,027
Investment gains/losses		(1	)		700		16
Investment holding gain in The Kraft Heinz Company		—			—		6,838
Equity in net earnings of The Kraft Heinz Company		2,938			923		(122	)
Other income		350			262		963

		46,486			25,011		26,722

Cost and expense items:
General and administrative		159			80		73
Interest expense		1,530			208		302
Income taxes		(143	)		649		2,264

		1,546			937		2,639

Net earnings attributable to Berkshire Hathaway shareholders		44,940			24,074		24,083
Other comprehensive income attributable to Berkshire Hathaway shareholders		21,273			3,316		(8,750	)

Comprehensive income attributable to Berkshire Hathaway shareholders	$	66,213		$	27,390	$	15,333

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,
	2017			2016			2015
Cash flows from operating activities:
Net earnings attributable to Berkshire Hathaway shareholders	$	44,940		$	24,074		$	24,083
Adjustments to reconcile net earnings to cash flows from operating activities:
Investment gains/losses		1			(700	)		(6,854)
Undistributed earnings of consolidated subsidiaries		(37,832	)		(13,264	)		(8,508)
Non-cash dividends from consolidated subsidiaries		—			—			(3,938)
Income taxes payable		(135	)		629			2,227
Other		(1,234	)		(161	)		222

Net cash flows from operating activities		5,740			10,578			7,232

Cash flows from investing activities:
Redemption (purchase) of Kraft Heinz Company investments		—			8,320			(5,258)
Investments in and advances to/repayments from consolidated subsidiaries, net		(239	)		(26,398	)		(2,274)
Purchases of U.S. Treasury Bills		(19,663	)		(9,350	)		—
Sales and maturities of U.S. Treasury Bills		14,847			1,145			—

Net cash flows from investing activities		(5,055	)		(26,283	)		(7,532)

Cash flows from financing activities:
Proceeds from borrowings		1,201			9,278			3,165
Repayments of borrowings		(1,145	)		(1,125	)		(1,775)
Other		77			164			70

Net cash flows from financing activities		133			8,317			1,460

Increase (decrease) in cash and cash equivalents		818			(7,388	)		1,160
Cash and cash equivalents at beginning of year		3,221			10,609			9,449

Cash and cash equivalents at end of year	$	4,039		$	3,221		$	10,609

Other cash flow information:
Income taxes paid	$	2,076		$	3,583		$	3,180
Interest paid		386			307			206
Non-cash investments in consolidated subsidiaries		—			—			3,938

Note to Condensed Financial Information

In December 2017, the Tax Cuts and Jobs Act of 2017 (“TCJA”) was enacted, which reduced the Parent Company’s income tax expense in 2017 by $550 million, primarily due to the reduction in deferred tax liabilities attributable to the lower U.S. statutory rate, partly offset by a one-time income tax expense on certain accumulated undistributed earnings of foreign subsidiaries. The effects of the TCJA on income tax expense of consolidated subsidiaries is included in undistributed earnings in consolidated subsidiaries.

In 2013, the Parent Company invested $12.25 billion in H.J. Heinz Holding Corporation (“Heinz Holding”), an entity formed to acquire H.J. Heinz Company, which included common stock and warrants and cumulative compounding preferred stock. After a series of transactions in 2015, Berkshire’s interests in Heinz Holding became a 26.8% ownership of outstanding common stock of The Kraft Heinz Company (“Kraft Heinz”) and is currently 26.7% of such shares. Reference is made to Note 5 to the Consolidated Financial Statements for additional information concerning Berkshire’s investments in Kraft Heinz.

In January 2017, Berkshire issued €1.1 billion in senior notes consisting of €550 million of 0.25% notes due in 2021 and €550 million of 0.625% notes due in 2023, which increased Euro denominated notes to €6.85 billion. In 2017, the carrying value of Berkshire’s Euro denominated senior notes increased $990 million due to changes in the Euro/U.S. Dollar exchange rates. This increase produced a corresponding charge to pre-tax earnings of $990 million in 2017. Parent Company debt maturities over the next five years are as follows: 2018—$1,550 million; 2019—$753 million; 2020—$1,203 million; 2021—$2,160 million and 2022—$613 million. Berkshire guarantees debt obligations of certain of its subsidiaries, which as of December 31, 2017, totaled approximately $14.8 billion. Such guarantees are an absolute, unconditional and irrevocable guarantee for the full and prompt payment when due of all present and future payment obligations. Berkshire also provides guarantees in connection with equity index put option contracts and certain retroactive reinsurance contracts of subsidiaries. The amounts of subsidiary payments under these contracts, if any, is contingent upon the outcome of future events.