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Business segment data

Our operating businesses include a large and diverse group of insurance, finance, manufacturing, service and retailing businesses. We organize our reportable business segments in a manner that reflects how management views those business activities. Certain businesses are grouped together for segment reporting based upon similar products or product lines, marketing, selling and distribution characteristics, even though those business units are operated under separate local management.

The accompanying business segment information for 2017 and 2016 reflects certain reclassifications to conform to presentations in 2018. Specifically, business units that previously were reported as the finance and financial products segment were reclassified to manufacturing (Clayton Homes and UTLX), services and retailing (CORT and XTRA leasing) and corporate and other (principally investment income).

The tabular information that follows shows data of reportable segments reconciled to amounts reflected in our Consolidated Financial Statements. Intersegment transactions are not eliminated from segment results when management considers those transactions in assessing the results of the respective segments. Furthermore, our management does not consider investment and derivative gains/losses, amortization of certain purchase accounting adjustments related to Berkshire’s business acquisitions or certain other corporate income and expense items in assessing the financial performance of operating units. Collectively, these items are included in reconciliations of segment amounts to consolidated amounts.


Business Identity		Business Activity
Insurance:
GEICO		Underwriting private passenger automobile insurance mainly by direct response methods

Berkshire Hathaway Reinsurance Group		Underwriting excess-of-loss, quota-share and facultative reinsurance worldwide

Berkshire Hathaway Primary Group		Underwriting multiple lines of property and casualty insurance policies for primarily commercial accounts

BNSF		Operation of one of the largest railroad systems in North America

Berkshire Hathaway Energy		Regulated electric and gas utility, including power generation and distribution activities and real estate brokerage activities

Manufacturing		Manufacturers of numerous products including industrial, consumer and building products, including manufactured housing and related consumer financing

McLane Company		Wholesale distribution of groceries and non-food items

Service and retailing		Providers of numerous services including fractional aircraft ownership programs, aviation pilot training, electronic components distribution, various retailing businesses, including automobile dealerships, and trailer and furniture leasing

A disaggregation of our consolidated data for each of the three most recent years is presented in the tables which follow (in millions).


	Revenues								Earnings before income taxes
	2018		2017			2016			2018			2017			2016
Operating Businesses:
Insurance:
Underwriting:
GEICO	$	33,363	$	29,441		$	25,483		$	2,449		$	(310	)	$	462
Berkshire Hathaway Reinsurance Group		15,944		24,013			14,141			(1,109	)		(3,648	)		1,012
Berkshire Hathaway Primary Group		8,111		7,143			6,257			670			719			657

Insurance underwriting		57,418		60,597			45,881			2,010			(3,239	)		2,131
Investment income		5,518		4,865			4,522			5,503			4,855			4,482

Total insurance		62,936		65,462			50,403			7,513			1,616			6,613

BNSF		23,855		21,387			19,829			6,863			6,328			5,693
Berkshire Hathaway Energy		19,987		18,854			17,764			2,472			2,499			2,878
Manufacturing		61,883		57,645			52,969			9,366			8,324			7,735
McLane Company		49,987		49,775			48,075			246			299			431
Service and retailing		28,939		27,219			26,392			2,696			2,304			2,058

		247,587		240,342			215,432			29,156			21,370			25,408
Reconciliation to consolidated amount:
Investment and derivative gains/losses		—		—			—			(22,455	)		2,128			8,304
Interest expense, not allocated to segments		—		—			—			(458	)		(486	)		(474	)
Equity method investments		—		—			—			(2,167	)		3,014			1,109
Corporate, eliminations and other		250		(409	)		(318	)		(75	)		(2,188	)		(680	)

	$	247,837	$	239,933		$	215,114		$	4,001		$	23,838		$	33,667


	Interest expense								Income tax expense
	2018		2017			2016			2018			2017			2016
Operating Businesses:
Insurance	$	—	$	—		$	—		$	1,374		$	(71	)	$	1,585
BNSF		1,041		1,016			992			1,644			2,369			2,124
Berkshire Hathaway Energy		1,777		2,254			1,715			(452	)		148			371
Manufacturing		690		679			631			2,188			2,678			2,442
McLane Company		15		19			—			59			94			169
Service and retailing		91		67			71			634			812			761

		3,614		4,035			3,409			5,447			6,030			7,452
Reconciliation to consolidated amount:
Investment and derivative gains/losses		—		—			—			(4,673	)		742			1,807
Interest expense, not allocated to segments		458		486			474			(96	)		(170	)		(166)
Equity method investments		—		—			—			(753	)		910			396
Income tax net benefit – Tax Cuts and Jobs Act of 2017		—		—			—			—			(28,200	)		—
Corporate, eliminations and other		(219)		(135	)		(142	)		(246	)		(827	)		(249)

	$	3,853	$	4,386		$	3,741		$	(321	)	$	(21,515	)	$	9,240


	Capital expenditures						Depreciation of tangible assets
	2018		2017		2016		2018		2017		2016
Operating Businesses:
Insurance	$	130	$	170	$	128	$	79	$	84	$	85
BNSF		3,187		3,256		3,819		2,268		2,304		2,079
Berkshire Hathaway Energy		6,241		4,571		5,090		2,830		2,548		2,560
Manufacturing		3,116		2,490		2,581		1,890		1,839		1,757
McLane Company		276		289		258		204		193		165
Service and retailing		1,587		932		1,078		1,115		751		765

	$	14,537	$	11,708	$	12,954	$	8,386	$	7,719	$	7,411


	Goodwill at year-end						Identifiable assets at year-end
	2018		2017		2016		2018		2017		2016
Operating Businesses:
Insurance	$	15,289	$	15,499	$	15,474	$	289,746	$	294,418	$	234,037
BNSF		14,851		14,845		14,845		70,242		69,438		69,277
Berkshire Hathaway Energy		9,851		9,935		9,266		80,543		77,710		74,571
Manufacturing		34,019		33,967		32,915		99,912		97,753		93,835
McLane Company		734		734		734		6,243		6,090		5,896
Service and retailing		6,281		6,278		6,252		24,724		20,014		19,208

	$	81,025	$	81,258	$	79,486		571,410		565,423		496,824

Reconciliation to consolidated amount:
Corporate and other								55,359		55,414		44,544
Goodwill								81,025		81,258		79,486

							$	707,794	$	702,095	$	620,854

Premiums written and earned by the property/casualty and life/health insurance businesses are summarized below (in millions).


	Property/Casualty									Life/Health
	2018			2017			2016			2018			2017			2016
Premiums Written:
Direct	$	44,513		$	39,377		$	34,001		$	1,111		$	866		$	1,060
Assumed		8,970			17,815			8,037			5,540			4,925			4,672
Ceded		(869	)		(694	)		(798	)		(49	)		(47	)		(62	)

	$	52,614		$	56,498		$	41,240		$	6,602		$	5,744		$	5,670

Premiums Earned:
Direct	$	43,095		$	37,755		$	33,207		$	1,111		$	866		$	1,060
Assumed		8,649			17,813			7,848			5,438			4,866			4,671
Ceded		(825	)		(677	)		(843	)		(50	)		(26	)		(62	)

	$	50,919		$	54,891		$	40,212		$	6,499		$	5,706		$	5,669

Insurance premiums written by geographic region (based upon the domicile of the insured or reinsured) are summarized below. Dollars are in millions.


	Property/Casualty						Life/Health
	2018		2017		2016		2018		2017		2016
United States	$	46,146	$	50,604	$	35,878	$	3,598	$	3,320	$	3,473
Asia Pacific		3,726		3,307		3,616		1,361		879		715
Western Europe		2,157		1,516		1,406		939		909		822
All other		585		1,071		340		704		636		660

	$	52,614	$	56,498	$	41,240	$	6,602	$	5,744	$	5,670

Consolidated sales, service and leasing revenues were $139.1 billion in 2018, $132.8 billion in 2017 and $125.6 billion in 2016. In 2018, 84% of such revenues were attributable to the United States compared to 85% in 2017 and 2016. The remainder of sales, service and leasing revenues were primarily in Europe, Canada and the Asia Pacific. Consolidated sales, service and leasing revenues included sales to Walmart Stores, Inc. of approximately $13 billion in 2018 and $14 billion in 2017 and 2016. In 2018, approximately 96% of our revenues from railroad, utilities and energy businesses were in the United States compared to 95% in 2017 and 2016. At December 31, 2018, approximately 89% of our consolidated net property, plant and equipment and equipment held for lease was located in the United States with the remainder primarily in Canada and Europe.