Condensed Financial Information

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Financial Information

BERKSHIRE HATHAWAY INC. (Parent Company)

Condensed Financial Information

(Dollars in millions)

Schedule I

Balance Sheets

	December 31,
	2020		2019
Assets:
Cash and cash equivalents	$	12,329	$	15,004
Short-term investments in U.S. Treasury Bills		29,773		25,514
Investments in and advances to/from consolidated subsidiaries		411,826		392,162
Investment in The Kraft Heinz Company		13,336		13,757
Other assets		108		131
	$	467,372	$	446,568
Liabilities and Shareholders’ Equity:
Accounts payable, accrued interest and other liabilities	$	369	$	320
Income taxes, principally deferred		1,174		1,554
Notes payable and other borrowings		22,665		19,903
		24,208		21,777
Berkshire Hathaway shareholders’ equity		443,164		424,791
	$	467,372	$	446,568

Statements of Earnings and Comprehensive Income

	Year ended December 31,
	2020			2019			2018
Income items:
From consolidated subsidiaries:
Dividends and distributions	$	26,110		$	15,603		$	9,658
Undistributed earnings (losses)		17,402			65,237			(3,952	)
		43,512			80,840			5,706
Investment gains (losses)		(24	)		(125	)		(4	)
Equity in net earnings (losses) of The Kraft Heinz Company		95			493			(2,730	)
Other income		328			780			649
		43,911			81,988			3,621
Cost and expense items:
General and administrative		194			122			216
Interest expense		489			591			601
Foreign exchange (gains) losses on non-U.S. Dollar denominated debt		970			(193	)		(366	)
Income tax expense (benefit)		(263	)		51			(851	)
		1,390			571			(400	)
Net earnings attributable to Berkshire Hathaway shareholders		42,521			81,417			4,021
Other comprehensive income attributable to Berkshire Hathaway shareholders		1,000			(228	)		(2,211	)
Comprehensive income attributable to Berkshire Hathaway shareholders	$	43,521		$	81,189		$	1,810

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,
	2020			2019			2018
Cash flows from operating activities:
Net earnings attributable to Berkshire Hathaway shareholders	$	42,521		$	81,417		$	4,021
Adjustments to reconcile net earnings to cash flows from operating activities:
Investment gains/losses		24			125			4
Undistributed earnings of consolidated subsidiaries		(17,402	)		(65,237	)		3,952
Non-cash dividends from subsidiaries		(8,296	)		—			—
Income taxes payable		(72	)		(56	)		(972	)
Other		1,100			(693	)		3,062
Net cash flows from operating activities		17,875			15,556			10,067
Cash flows from investing activities:
Investments in and advances to/from consolidated subsidiaries, net		(1,947	)		60			460
Purchases of U.S. Treasury Bills		(54,715	)		(40,107	)		(29,740	)
Sales and maturities of U.S. Treasury Bills		59,035			36,943			21,442
Other		11			737			—
Net cash flows from investing activities		2,384			(2,367	)		(7,838	)
Cash flows from financing activities:
Proceeds from borrowings		2,923			3,967			17
Repayments of borrowings		(1,151	)		(758	)		(1,563	)
Acquisition of treasury stock		(24,706	)		(4,850	)		(1,346	)
Other		—			19			61
Net cash flows from financing activities		(22,934	)		(1,622	)		(2,831	)
Increase (decrease) in cash and cash equivalents		(2,675	)		11,567			(602	)
Cash and cash equivalents at beginning of year		15,004			3,437			4,039
Cash and cash equivalents at end of year	$	12,329		$	15,004		$	3,437
Other cash flow information:
Income taxes paid	$	3,391		$	3,531		$	2,790
Interest paid	359			364				388

Note to Condensed Financial Information

Berkshire currently owns 26.6% of the outstanding shares of The Kraft Heinz Company (“Kraft Heinz”) common stock, which is accounted for pursuant to the equity method. See Note 5 to the accompanying Consolidated Financial Statements for additional information regarding this investment.

In 2020, the Parent Company repaid €1.0 billion of maturing senior notes and issued €1.0 billion of 0.0% senior notes due in 2025 and ¥195.5 billion (approximately $1.8 billion) of senior notes with maturity dates ranging from 2023 to 2060 with a weighted average interest rate of 1.07%. As of December 31, 2020, the Parent Company’s non-U.S. Dollar denominated borrowings included €6.85 billion and ¥625.5 billion par value senior notes. The gains and losses from the periodic remeasurement of these non-U.S. Dollar denominated notes due to changes in foreign currency exchange rates are included in earnings. See Note 17 to the accompanying Consolidated Financial Statements for additional information.

Parent Company debt maturities over the next five years are as follows: 2021—$2,172 million; 2022—$600 million; 2023—$4,633 million; 2024—$2,272 million and 2025—$1,801 million. The Parent Company guarantees certain debt of subsidiaries, which in the aggregate, approximated $14.4 billion at December 31, 2020 and included $13.1 billion of debt issued by Berkshire Hathaway Finance Corporation. Such guarantees are an absolute, unconditional and irrevocable guarantee for the full and prompt payment when due of all present and future payment obligations. The Parent Company has also provided guarantees in connection with equity index put option contracts and certain retroactive reinsurance contracts issued by subsidiaries. The amounts of subsidiary payments under these contracts, if any, is contingent upon the outcome of future events.