BERKSHIRE HATHAWAY INC.

(Parent Company)

Condensed Financial Information

(Dollars in millions)

Schedule I

Balance Sheets


	December 31,
	2018		2017
Assets:
Cash and cash equivalents	$	3,437	$	4,039
Short-term investments in U.S. Treasury Bills		22,957		13,132
Investments in and advances to/from consolidated subsidiaries		328,898		335,668
Investment in The Kraft Heinz Company		13,813		17,635
Other assets		80		79

	$	369,185	$	370,553

Liabilities and Shareholders’ Equity:
Accounts payable, accrued interest and other liabilities	$	1,507	$	196
Income taxes, principally deferred		2,104		3,294
Notes payable and other borrowings		16,871		18,767

		20,482		22,257
Berkshire Hathaway shareholders’ equity		348,703		348,296

	$	369,185	$	370,553

Statements of Earnings and Comprehensive Income


	Year ended December 31,
	2018			2017			2016
Income items:
From consolidated subsidiaries:
Dividends	$	9,658		$	5,367		$	9,862
Undistributed earnings (losses)		(3,952	)		37,832			13,264

		5,706			43,199			23,126
Investment gains (losses)		(4	)		(1	)		700
Equity in net earnings (losses) of The Kraft Heinz Company		(2,730	)		2,938			923
Other income		649			350			262

		3,621			46,486			25,011

Cost and expense items:
General and administrative		216			159			80
Interest expense		601			522			452
Foreign exchange (gains) losses Euro-denominated senior notes		(366	)		1,008			(244	)
Income tax expense (benefit)		(851	)		(143	)		649

		(400	)		1,546			937

Net earnings attributable to Berkshire Hathaway shareholders		4,021			44,940			24,074
Other comprehensive income attributable to Berkshire Hathaway shareholders		(2,211	)		21,273			3,316

Comprehensive income attributable to Berkshire Hathaway shareholders	$	1,810		$	66,213		$	27,390

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,
	2018			2017			2016
Cash flows from operating activities:
Net earnings attributable to Berkshire Hathaway shareholders	$	4,021		$	44,940		$	24,074
Adjustments to reconcile net earnings to cash flows from operating activities:
Investment gains (losses)		4			1			(700	)
Undistributed earnings of consolidated subsidiaries		3,952			(37,832	)		(13,264	)
Income taxes payable		(972	)		(135	)		629
Other		3,062			(1,234	)		(161	)

Net cash flows from operating activities		10,067			5,740			10,578

Cash flows from investing activities:
Redemption of Kraft Heinz Company preferred stock		—			—			8,320
Investments in and advances to/from consolidated subsidiaries, net		460			(239	)		(26,398	)
Purchases of U.S. Treasury Bills		(29,740	)		(19,663	)		(9,350	)
Sales and maturities of U.S. Treasury Bills		21,442			14,847			1,145

Net cash flows from investing activities		(7,838	)		(5,055	)		(26,283	)

Cash flows from financing activities:
Proceeds from borrowings		17			1,201			9,278
Repayments of borrowings		(1,563	)		(1,145	)		(1,125	)
Acquisition of treasury stock		(1,346	)		—			—
Other		61			77			164

Net cash flows from financing activities		(2,831	)		133			8,317

Increase (decrease) in cash and cash equivalents		(602	)		818			(7,388	)
Cash and cash equivalents at beginning of year		4,039			3,221			10,609

Cash and cash equivalents at end of year	$	3,437		$	4,039		$	3,221

Other cash flow information:
Income taxes paid	$	2,790		$	2,076		$	3,583
Interest paid		388			386			307

Note to Condensed Financial Information

Berkshire acquired 50% of the outstanding common stock of Heinz Holding Company in 2013. After a series of transactions in 2015, that interest represented 26.8% of the outstanding common stock of The Kraft Heinz Company (“Kraft Heinz”). Berkshire currently owns 26.7% of the outstanding shares of Kraft Heinz common stock. Reference is made to Note 5 to the Consolidated Financial Statements for additional information concerning Berkshire’s investment in Kraft Heinz.

Prior to 2018, the Parent Company issued Euro-denominated senior notes and the aggregate par amount outstanding of these borrowings was €6.85 billion as of December 31, 2018 and 2017. The gains and losses from the periodic remeasurement of the Euro notes due to changes in foreign currency exchange rates are included in earnings.

Parent Company debt maturities over the next five years are as follows: 2019—$752 million; 2020—$1,149 million; 2021—$2,131 million; 2022—$613 million and 2023—$3,991 million. Berkshire guarantees debt obligations of certain of its subsidiaries, which as of December 31, 2018, totaled approximately $12.4 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.

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.