Business segment data

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Business segment data

Notes to Consolidated Financial Statements (Continued)

(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, impairments or 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.

Berkshire’s operating segments are as follows.

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 home building and related financial services
McLane Company	Wholesale distribution of groceries and non-food items
Service and retailing	Providers of numerous services including shared 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
	2020		2019		2018		2020			2019			2018
Operating Businesses
Insurance:
Underwriting:
GEICO	$	35,093	$	35,572	$	33,363	$	3,428		$	1,506		$	2,449
Berkshire Hathaway Primary Group		9,615		9,165		8,111		110			383			670
Berkshire Hathaway Reinsurance Group		18,693		16,341		15,944		(2,700	)		(1,472	)		(1,109	)
Insurance underwriting		63,401		61,078		57,418		838			417			2,010
Investment income		5,960		6,615		5,518		5,949			6,600			5,503
Total insurance		69,361		67,693		62,936		6,787			7,017			7,513
BNSF		20,869		23,515		23,855		6,792			7,250			6,863
Berkshire Hathaway Energy		21,031		20,114		19,987		2,479			2,618			2,472
Manufacturing		59,079		62,730		61,883		8,010			9,522			9,366
McLane Company		46,840		50,458		49,987		251			288			246
Service and retailing		28,178		29,487		28,939		2,628			2,555			2,696
		245,358		253,997		247,587		26,947			29,250			29,156
Reconciliation to consolidated amount
Investment and derivative gains/losses		—		—		—		40,746			72,607			(22,455	)
Interest expense, not allocated to segments		—		—		—		(483	)		(416	)		(458	)
Equity method investments		—		—		—		726			1,176			(2,167	)
Goodwill and intangible asset impairments		—		—		—		(10,671	)		(96	)		(382	)
Corporate, eliminations and other		152		619		250		(1,572	)		175			307
	$	245,510	$	254,616	$	247,837	$	55,693		$	102,696		$	4,001

	Interest expense									Income tax expense
	2020			2019			2018			2020			2019			2018
Operating Businesses
Insurance	$	—		$	—		$	—		$	1,089		$	1,166		$	1,374
BNSF		1,037			1,070			1,041			1,631			1,769			1,644
Berkshire Hathaway Energy		1,941			1,835			1,777			(1,010	)		(526	)		(452	)
Manufacturing		737			752			690			1,795			2,253			2,188
McLane Company		—			—			15			71			71			59
Service and retailing		61			86			91			669			603			634
		3,776			3,743			3,614			4,245			5,336			5,447
Reconciliation to consolidated amount
Investment and derivative gains/losses		—			—			—			8,855			15,159			(4,673	)
Interest expense, not allocated to segments		483			416			458			(102	)		(88	)		(96	)
Equity method investments		—			—			—			57			148			(753	)
Corporate, eliminations and other		(176	)		(198	)		(219	)		(615	)		349			(246	)
	$	4,083		$	3,961		$	3,853		$	12,440		$	20,904		$	(321	)

Notes to Consolidated Financial Statements (Continued)

(27) Business segment data (Continued)

	Capital expenditures						Depreciation of tangible assets
	2020		2019		2018		2020		2019		2018
Operating Businesses
Insurance	$	50	$	108	$	130	$	74	$	82	$	79
BNSF		3,063		3,608		3,187		2,423		2,350		2,268
Berkshire Hathaway Energy		6,765		7,364		6,241		3,376		2,947		2,830
Manufacturing		2,133		2,981		3,116		2,026		1,951		1,890
McLane Company		98		158		276		204		225		204
Service and retailing		903		1,760		1,587		1,216		1,192		1,115
	$	13,012	$	15,979	$	14,537	$	9,319	$	8,747	$	8,386

	Goodwill at year-end						Identifiable assets at year-end
	2020		2019		2018		2020		2019		2018
Operating Businesses
Insurance	$	15,224	$	15,289	$	15,289	$	399,169	$	364,550	$	289,746
BNSF		14,851		14,851		14,851		73,809		73,699		70,242
Berkshire Hathaway Energy		11,763		9,979		9,851		109,286		88,651		80,543
Manufacturing		25,512		34,800		34,019		104,318		104,437		99,912
McLane Company		232		734		734		6,771		6,872		6,243
Service and retailing		6,152		6,229		6,281		26,173		26,494		24,724
	$	73,734	$	81,882	$	81,025		719,526		664,703		571,410
Reconciliation to consolidated amount
Corporate and other								80,469		71,144		55,359
Goodwill								73,734		81,882		81,025
							$	873,729	$	817,729	$	707,794

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

	Property/Casualty									Life/Health
	2020			2019			2018			2020			2019			2018
Premiums Written:
Direct	$	47,838		$	47,578		$	44,513		$	510		$	839		$	1,111
Assumed		11,533			10,214			8,970			5,960			5,046			5,540
Ceded		(898	)		(821	)		(869	)		(42	)		(45	)		(49	)
	$	58,473		$	56,971		$	52,614		$	6,428		$	5,840		$	6,602
Premiums Earned:
Direct	$	46,418		$	46,540		$	43,095		$	510		$	839		$	1,111
Assumed		11,449			9,643			8,649			5,973			4,952			5,438
Ceded		(907	)		(851	)		(825	)		(42	)		(45	)		(50	)
	$	56,960		$	55,332		$	50,919		$	6,441		$	5,746		$	6,499

Notes to Consolidated Financial Statements (Continued)

(27) Business segment data (Continued)

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

	Property/Casualty						Life/Health
	2020		2019		2018		2020		2019		2018
United States	$	50,250	$	50,529	$	46,146	$	2,820	$	2,553	$	3,598
Western Europe		3,751		2,535		2,157		1,120		908		939
Asia Pacific		3,410		3,114		3,726		1,652		1,582		1,361
All other		1,062		793		585		836		797		704
	$	58,473	$	56,971	$	52,614	$	6,428	$	5,840	$	6,602

Consolidated sales, service and leasing revenues were $132.3 billion in 2020, $140.8 billion in 2019 and $139.1 billion in 2018. Sales, service and leasing revenues attributable to the United States were 86% in 2020, 85% in 2019 and 84% in 2018 of such amounts. The remainder of sales, service and leasing revenues were primarily in Europe, Canada and the Asia Pacific.  Railroad, utilities and energy revenues were $41.8 billion in 2020, $43.5 billion in 2019 and $43.7 billion in 2018. In each of the three years, approximately 96% of such revenues were attributable to the United States. At December 31, 2020, 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 the United Kingdom.