Business segment data

12 Months Ended

Dec. 31, 2019

(27)	Business segment data

Our operating businesses include a large and diverse group of insurance, 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 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 business acquisition 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 Primary Group		Underwriting multiple lines of property and casualty insurance policies for primarily commercial accounts

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

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

Notes to Consolidated Financial Statements (Continued)

(27)	Business segment data (Continued)

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

	Revenues							Earnings before income taxes
	2019		2018		2017			2019			2018			2017
Operating Businesses:
Insurance:
Underwriting:
GEICO	$	35,572	$	33,363	$	29,441		$	1,506		$	2,449		$	(310	)
Berkshire Hathaway Primary Group		9,165		8,111		7,143			383			670			719
Berkshire Hathaway Reinsurance Group		16,341		15,944		24,013			(1,472	)		(1,109	)		(3,648	)
Insurance underwriting		61,078		57,418		60,597			417			2,010			(3,239	)
Investment income		6,615		5,518		4,865			6,600			5,503			4,855
Total insurance		67,693		62,936		65,462			7,017			7,513			1,616

BNSF		23,515		23,855		21,387			7,250			6,863			6,328
Berkshire Hathaway Energy		20,114		19,987		18,854			2,618			2,472			2,499
Manufacturing		62,730		61,883		57,645			9,522			9,366			8,324
McLane Company		50,458		49,987		49,775			288			246			299
Service and retailing		29,487		28,939		27,219			2,555			2,696			2,304
		253,997		247,587		240,342			29,250			29,156			21,370
Reconciliation to consolidated amount:
Investment and derivative gains/losses		—		—		—			72,607			(22,455	)		2,128
Interest expense, not allocated to segments		—		—		—			(416	)		(458	)		(486	)
Equity method investments		—		—		—			1,176			(2,167	)		3,014
Corporate, eliminations and other		619		250		(409	)		79			(75	)		(2,188	)
	$	254,616	$	247,837	$	239,933		$	102,696		$	4,001		$	23,838

	Interest expense									Income tax expense
	2019			2018			2017			2019			2018			2017
Operating Businesses:
Insurance	$	—		$	—		$	—		$	1,166		$	1,374		$	(71	)
BNSF		1,070			1,041			1,016			1,769			1,644			2,369
Berkshire Hathaway Energy		1,835			1,777			2,254			(526	)		(452	)		148
Manufacturing		752			690			679			2,253			2,188			2,678
McLane Company		—			15			19			71			59			94
Service and retailing		86			91			67			603			634			812
		3,743			3,614			4,035			5,336			5,447			6,030
Reconciliation to consolidated amount:
Investment and derivative gains/losses		—			—			—			15,159			(4,673	)		742
Interest expense, not allocated to segments		416			458			486			(88	)		(96	)		(170	)
Equity method investments		—			—			—			148			(753	)		910
Income tax net benefit – Tax Cuts and Jobs Act of 2017		—			—			—			—			—			(28,200	)
Corporate, eliminations and other		(198	)		(219	)		(135	)		349			(246	)		(827	)
	$	3,961		$	3,853		$	4,386		$	20,904		$	(321	)	$	(21,515	)

Notes to Consolidated Financial Statements (Continued)

(27)	Business segment data (Continued)

	Capital expenditures						Depreciation of tangible assets
	2019		2018		2017		2019		2018		2017
Operating Businesses:
Insurance	$	108	$	130	$	170	$	82	$	79	$	84
BNSF		3,608		3,187		3,256		2,350		2,268		2,304
Berkshire Hathaway Energy		7,364		6,241		4,571		2,947		2,830		2,548
Manufacturing		2,981		3,116		2,490		1,951		1,890		1,839
McLane Company		158		276		289		225		204		193
Service and retailing		1,760		1,587		932		1,192		1,115		751
	$	15,979	$	14,537	$	11,708	$	8,747	$	8,386	$	7,719

	Goodwill at year-end						Identifiable assets at year-end
	2019		2018		2017		2019		2018		2017
Operating Businesses:
Insurance	$	15,289	$	15,289	$	15,499	$	364,550	$	289,746	$	294,418
BNSF		14,851		14,851		14,845		73,699		70,242		69,438
Berkshire Hathaway Energy		9,979		9,851		9,935		88,651		80,543		77,710
Manufacturing		34,800		34,019		33,967		104,437		99,912		97,753
McLane Company		734		734		734		6,872		6,243		6,090
Service and retailing		6,229		6,281		6,278		26,494		24,724		20,014
	$	81,882	$	81,025	$	81,258		664,703		571,410		565,423
Reconciliation to consolidated amount:
Corporate and other								71,144		55,359		55,414
Goodwill								81,882		81,025		81,258
							$	817,729	$	707,794	$	702,095

Property/casualty and life/health insurance premiums written and earned are summarized below (in millions).

	Property/Casualty									Life/Health
	2019			2018			2017			2019			2018			2017
Premiums Written:
Direct	$	47,578		$	44,513		$	39,377		$	839		$	1,111		$	866
Assumed		10,214			8,970			17,815			5,046			5,540			4,925
Ceded		(821	)		(869	)		(694	)		(45	)		(49	)		(47	)
	$	56,971		$	52,614		$	56,498		$	5,840		$	6,602		$	5,744
Premiums Earned:
Direct	$	46,540		$	43,095		$	37,755		$	839		$	1,111		$	866
Assumed		9,643			8,649			17,813			4,952			5,438			4,866
Ceded		(851	)		(825	)		(677	)		(45	)		(50	)		(26	)
	$	55,332		$	50,919		$	54,891		$	5,746		$	6,499		$	5,706

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

	Property/Casualty						Life/Health
	2019		2018		2017		2019		2018		2017
United States	$	50,529	$	46,146	$	50,604	$	2,553	$	3,598	$	3,320
Asia Pacific		3,114		3,726		3,307		1,582		1,361		879
Western Europe		2,535		2,157		1,516		908		939		909
All other		793		585		1,071		797		704		636
	$	56,971	$	52,614	$	56,498	$	5,840	$	6,602	$	5,744

Notes to Consolidated Financial Statements (Continued)

(27)	Business segment data (Continued)

Consolidated sales, service and leasing revenues were $140.8 billion in 2019, $139.1 billion in 2018 and $132.8 billion in 2017. In 2019, 85% of such revenues were attributable to the United States compared to 84% in 2018 and 85% in 2017. The remainder of sales, service and leasing revenues were primarily in Europe, Canada and the Asia Pacific. In 2019 and 2018, approximately 96% of our revenues from railroad, utilities and energy businesses were in the United States compared to 95% in 2017. At December 31, 2019, 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.