UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q(Mark One)☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024

OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934
For the transition period fromtoCommission file number 001-14905

BERKSHIRE HATHAWAY INC.
(Exact name of registrant as specified in its charter)
Delaware47-0813844(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)

3555 Farnam Street, Omaha, Nebraska 68131(Address of principal executive office) (Zip Code)(402) 346-1400(Registrant’s telephone number, including area code)(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbols
Name of each exchange on which registered
Class A Common Stock
BRK.A
New York Stock Exchange
Class B Common Stock
BRK.B
New York Stock Exchange
0.000% Senior Notes due 2025
BRK25
New York Stock Exchange
1.125% Senior Notes due 2027
BRK27
New York Stock Exchange
2.150% Senior Notes due 2028
BRK28
New York Stock Exchange
1.500% Senior Notes due 2030
BRK30
New York Stock Exchange
2.000% Senior Notes due 2034
BRK34
New York Stock Exchange
1.625% Senior Notes due 2035
BRK35
New York Stock Exchange
2.375% Senior Notes due 2039
BRK39
New York Stock Exchange
0.500% Senior Notes due 2041
BRK41
New York Stock Exchange
2.625% Senior Notes due 2059
BRK59
New York Stock Exchange
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that theregistrant was required to submit such files). Yes ☒ No ☐Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smallerreporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smallerreporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☐
Large accelerated filer ☒Accelerated filer
Non-accelerated filer ☐Smaller reporting company ☐Emerging growth company ☐If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒Number of shares of common stock outstanding as of July 23, 2024:
Class A —553,234Class B —1,325,192,508

BERKSHIRE HATHAWAY INC.
Page No.

Part I – Financial Information
Item 1. Financial Statements

Consolidated Balance Sheets—June 30, 2024 and December 31, 2023
Consolidated Statements of Earnings—Second Quarter and First Six Months 2024 and 2023
Consolidated Statements of Comprehensive Income—Second Quarter and First Six Months 2024 and 2023
Consolidated Statements of Changes in Shareholders’ Equity—Second Quarter and First Six Months 2024 and2023
Consolidated Statements of Cash Flows—First Six Months 2024 and 2023
Item 2.
Item 3.
Item 4.

Notes to Consolidated Financial Statements
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Quantitative and Qualitative Disclosures About Market Risk
Controls and Procedures

2
4
5
5
6
7
29
48
48

Part II – Other Information

48

Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

48
48
49
49
49
49
50

Legal Proceedings
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities
Defaults Upon Senior Securities
Mine Safety Disclosures
Other Information
Exhibits

Signature50

1Part I Financial Information
Item 1. Financial Statements
BERKSHIRE HATHAWAY INC.
and Subsidiaries
CONSOLIDATED BALANCE SHEETS(dollars in millions)
June 30,
2024(Unaudited)

ASSETS
Insurance and Other:
Cash and cash equivalents*
Short-term investments in U.S. Treasury Bills
Investments in fixed maturity securities
Investments in equity securities
Equity method investments
Loans and finance receivables
Other receivables
Inventories
Property, plant and equipment
Equipment held for lease
Goodwill
Other intangible assets
Deferred charges - retroactive reinsurance
Other

$

Railroad, Utilities and Energy:
Cash and cash equivalents*
Receivables
Property, plant and equipment
Goodwill
Regulatory assets
Other

36,884
234,618
16,802284,871
30,06526,08545,96723,49822,144
17,41850,80028,788
9,064
20,629847,633
5,440
6,502
179,907
33,611
5,392
30,375261,227
1,108,860

December 31,
2023$

33,672
129,619
23,758353,842
29,066
24,681
44,17424,15922,03016,94750,86829,327
9,495
19,568811,206
4,350
7,086
177,616
33,7585,565
30,397258,772
1,069,978$$——————* Includes U.S. Treasury Bills with maturities of three months or less when purchased of $4.1 billion at June 30, 2024 and $4.8 billion
at December 31, 2023.
See accompanying Notes to Consolidated Financial Statements

2

BERKSHIRE HATHAWAY INC.
and Subsidiaries
CONSOLIDATED BALANCE SHEETS(dollars in millions)
June 30,
2024(Unaudited)

LIABILITIES AND SHAREHOLDERS’ EQUITY
Insurance and Other:
Unpaid losses and loss adjustment expenses
Unpaid losses and loss adjustment expenses - retroactive reinsurance contracts
Unearned premiums
Life, annuity and health insurance benefits
Other policyholder liabilities
Accounts payable, accruals and other liabilities
Aircraft repurchase liabilities and unearned lease revenues
Notes payable and other borrowings$

Railroad, Utilities and Energy:
Accounts payable, accruals and other liabilities
Regulatory liabilities
Notes payable and other borrowings
Income taxes, principally deferred
Total liabilities
Redeemable noncontrolling interests
Shareholders’ equity:
Common stock
Capital in excess of par value
Accumulated other comprehensive income
Retained earnings
Treasury stock, at cost
Berkshire Hathaway shareholders’ equity
Noncontrolling interests
Total shareholders’ equity$
See accompanying Notes to Consolidated Financial Statements

3

112,804
33,49432,18517,50010,71932,403
8,442
41,940289,487

December 31,
2023$

111,082
34,64730,507
20,213
11,54532,402
8,253
42,692
291,341

21,194
7,106
81,688109,988
101,414500,889—

22,461
6,818
85,579114,858
93,009499,208
3,261

8
34,991(3,855)650,273(79,720)
601,697
6,274
607,971
1,108,860

8
34,480(3,763)607,350(76,802)561,273
6,236
567,509
1,069,978$

BERKSHIRE HATHAWAY INC.
and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS(dollars in millions except per share amounts)(Unaudited)
Second Quarter
2024
2023

Revenues:
Insurance and Other:
Insurance premiums earned
Sales and service revenues
Leasing revenues
Interest, dividend and other investment income$

First Six Months
2024
2023

21,953 $38,892
2,308
5,249
68,402

20,561 $39,126
2,079
3,846
65,612

43,427 $76,364
4,530
9,554
133,875

40,35777,5144,123
7,075
129,069

Total revenues

5,720
18,048
1,483
25,251
93,653

5,808
19,593
1,490
26,891
92,503

11,35735,7382,552
49,647
183,522

11,80934,5102,508
48,827
177,896

Investment gains (losses)

23,85733,06125,73367,81914,107954
4,046
30,391
1,739
5,195
330
56,762

14,0891,128
3,729
30,621
1,457
5,005
314
56,34327,555
1,899
7,799
59,786
3,430
9,968
646
111,083

28,3101,913
7,316
60,9402,934
10,607642
112,662

Railroad, Utilities and Energy:
Freight rail transportation revenues
Utility and energy operating revenues
Service revenues and other income

Costs and expenses:
Insurance and Other:
Insurance losses and loss adjustment expenses
Life, annuity and health benefits
Insurance underwriting expenses
Cost of sales and services
Cost of leasing
Selling, general and administrative expenses
Interest expense
Railroad, Utilities and Energy:
Freight rail transportation expenses
Utility and energy cost of sales and other expenses
Other expenses
Interest expense
Total costs and expenses
Earnings before income taxes and equity method earnings
Equity method earnings
Earnings before income taxes
Income tax expense
Net earnings
Earnings attributable to noncontrolling interests
Net earnings attributable to Berkshire Hathaway shareholders
Net earnings per average equivalent Class A share
Net earnings per average equivalent Class B share*
Average equivalent Class A shares outstanding
Average equivalent Class B shares outstanding

3,912
4,014
7,850
8,175
16,81918,15933,08732,005
1,232
1,189
2,237
2,060
900
935
1,900
1,825
22,86324,29745,07444,06579,62580,640156,157
156,727
37,88544,92453,09888,988
252
511
745
1,199
38,13745,43553,84390,187
7,639
9,236
10,513
18,23130,49836,19943,33071,956
150
287
280
540
$
30,348 $35,912 $43,050 $71,416$21,122 $24,775 $29,936 $49,152$14.08 $
16.52 $
19.96 $
32.77
1,436,790
1,449,542
1,438,080
1,452,971
2,155,185,283 2,174,313,670 2,157,120,209 2,179,456,816——————* Net earnings per average equivalent Class B share outstanding are equal to one-fifteen-hundredth of the equivalent Class A amount.
See Note 19.
See accompanying Notes to Consolidated Financial Statements

4

BERKSHIRE HATHAWAY INC.
and Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(dollars in millions)(Unaudited)
Second Quarter
2024
2023

Net earnings$
Other comprehensive income:Unrealized gains (losses) on investments
Applicable income taxes
Foreign currency translation
Applicable income taxes
Long-duration insurance contract discount rate changes
Applicable income taxes
Defined benefit pension plans
Applicable income taxes
Other, net
Other comprehensive income, net
Comprehensive income
Comprehensive income attributable to noncontrolling interests
Comprehensive income attributable to Berkshire Hathaway shareholders $30,498

$

10
(3)
(222)
(8)
508
(108)
(5)
1
17
190
30,688145
30,543 $36,199First Six Months
2024
2023

$

(41)
21
383
(21)
487
(125)
2
(6)
57
757
36,956308
36,648 $43,330$71,956

(25)
3
(761)
(8)
859
(175)
1
(1)
(13)
(120)
43,210252
42,958 $

206
(32)
632
(15)
120
(49)
52
(12)
(63)
839
72,795567
72,228CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY(dollars in millions)(Unaudited)
Berkshire Hathaway shareholders’ equity
Common stock Accumulated
and capital inotherexcess of parcomprehensive
Retained
Treasuryvalue
incomeearnings
stock

For the second quarter and first six months of 2024
Balance at December 31, 2023
Net earnings
Adoption of ASU 2023-02
Other comprehensive income, net
Acquisitions of common stock
Transactions with noncontrolling interests and other
Balance at March 31, 2024
Net earnings
Other comprehensive income, net
Acquisitions of common stock
Transactions with noncontrolling interests and other
Balance at June 30, 2024
For the second quarter and first six months of 2023
Balance at December 31, 2022
Net earnings
Other comprehensive income, net
Acquisitions of common stock
Transactions with noncontrolling interests and other
Balance at March 31, 2023
Net earnings
Other comprehensive income, net
Acquisitions of common stock
Transactions with noncontrolling interests and other
Balance at June 30, 2023

$

$

$

$

$

$

Noncontrollinginterests

Total

34,488 $
—
—
—
—
502
34,990 $———934,999 $(3,763) $607,350 $ (76,802) $—12,702
—
—
(127)
—
(287)
—
—
—
—
(2,573)———(4,050) $619,925 $ (79,375) $—30,348
—
195
—
—
—
—
(345)
—
—
—
(3,855) $650,273 $ (79,720) $6,236 $567,509
130
12,832
—
(127)
(23)
(310)
—
(2,573)(48)
454
6,295 $577,785
150
30,498
(5)
190
—
(345)
(166)
(157)
6,274 $607,971

35,175 $———(11)
35,164 $———(16)
35,148 $(5,052) $511,127 $ (67,826) $—35,504—76————(4,439)———(4,976) $546,631 $ (72,265) $—35,912
—
736
—
—
—
—
(1,303)———(4,240) $582,543 $ (73,568) $8,257 $481,681
253
35,7576
82—(4,439)7(4)8,523 $513,077
287
36,19921757—(1,303)(163)(179)
8,668 $548,551

See accompanying Notes to Consolidated Financial Statements
5

BERKSHIRE HATHAWAY INC.
and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS(dollars in millions)(Unaudited)First Six Months
2024

Cash flows from operating activities:
Net earnings
Adjustments to reconcile net earnings to operating cash flows:
Investment (gains) losses
Depreciation and amortization
Other
Changes in operating assets and liabilities:
Unpaid losses and loss adjustment expenses
Deferred charges - retroactive reinsurance
Unearned premiums
Receivables and originated loans
Inventories
Other assets
Other liabilities
Income taxes
Net cash flows from operating activities
Cash flows from investing activities:
Purchases of equity securities
Sales of equity securities
Purchases of U.S. Treasury Bills and fixed maturity securities
Sales of U.S. Treasury Bills and fixed maturity securities
Redemptions and maturities of U.S. Treasury Bills and fixed maturity securities
Acquisitions of businesses, net of cash acquired
Purchases of property, plant and equipment and equipment held for lease
Other
Net cash flows from investing activities
Cash flows from financing activities:
Proceeds from borrowings of insurance and other businesses
Repayments of borrowings of insurance and other businesses
Proceeds from borrowings of railroad, utilities and energy businesses
Repayments of borrowings of railroad, utilities and energy businesses
Changes in short-term borrowings, net
Acquisitions of treasury stock
Other, principally transactions with noncontrolling interests
Net cash flows from financing activities
Effects of foreign currency exchange rate changes
Increase (decrease) in cash and cash equivalents and restricted cash
Cash and cash equivalents and restricted cash at the beginning of the year*
Cash and cash equivalents and restricted cash at the end of the second quarter**Cash and cash equivalents and restricted cash are comprised of:Beginning of the year—
Insurance and Other
Railroad, Utilities and Energy
Restricted cash included in other assets

$

$

$
$

End of the second quarter—
Insurance and Other
Railroad, Utilities and Energy
Restricted cash included in other assets$$

See accompanying Notes to Consolidated Financial Statements

6

2023

43,330$71,956(25,733)
6,366(5,474)(67,819)
6,147(3,126)

690
431
1,735
(1,145)456(836)(3,782)
8,130
24,168

275
416
2,492
(1,194)505(980)(2,721)
15,17621,127(4,306)
97,123(229,505)
15,018120,480(342)(8,928)(191)(10,651)(7,442)
25,833(99,060)
39,991
59,815(8,516)(8,398)
513
2,736

1,692
(1,172)
6,617(7,192)(3,161)(2,918)(2,814)(8,948)(141)
4,428
38,64343,071

1,225(5,388)2,788(2,187)582(5,850)(803)(9,633)24
14,25436,39950,653$33,672
4,350
621
38,643$36,884
5,440
747
43,071$$$

32,2603,551
588
36,39944,611
5,444
598
50,653

BERKSHIRE HATHAWAY INC.
and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2024
Note 1. General
The accompanying unaudited Consolidated Financial Statements include the accounts of Berkshire Hathaway Inc. (“Berkshire”
or “Company”) consolidated with the accounts of all its subsidiaries and affiliates in which Berkshire holds controlling financial interests
as of the financial statement date. In these notes, the terms “us,” “we” or “our” refer to Berkshire and its consolidated subsidiaries.
Reference is made to Berkshire’s most recently issued Annual Report on Form 10-K (“Annual Report”), which includes informationnecessary or useful to understanding Berkshire’s businesses and financial statement presentations. Our significant accounting policies
and practices were presented as Note 1 to the Consolidated Financial Statements included in the Annual Report.
Financial information in this Quarterly Report reflects all adjustments that are, in the opinion of management, necessary to a fairstatement of results for the interim periods in accordance with accounting principles generally accepted in the United States (“GAAP”).
For several reasons, our results for interim periods may not be indicative of results to be expected for the year. The timing and magnitude
of catastrophe losses incurred by insurance subsidiaries and the estimation error inherent to the process of determining liabilities for
unpaid losses of insurance subsidiaries can be more significant to results of interim periods than to results for a full year. Given the sizeof our equity security investment portfolio, changes in market prices and the related changes in unrealized gains and losses on equity
securities will produce significant volatility in our interim and annual earnings. In addition, gains and losses from the periodic revaluationof certain assets and liabilities denominated in foreign currencies and asset impairment charges may cause significant variations inperiodic net earnings.
Significant estimates are used in the preparation of our Consolidated Financial Statements, including those associated withevaluations of certain long-lived assets, goodwill and other intangible assets for impairment, expected credit losses on amounts owed tous and the estimation of certain losses assumed under insurance and reinsurance contracts. These estimates may be subject to significant
adjustments in future periods due to ongoing macroeconomic and geopolitical events, as well as changes in industry or company-specificfactors or events.
Note 2. New accounting pronouncements
In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2023-02, “Accounting
for Investments in Tax Credit Structures Using the Proportional Amortization Method” (“ASU 2023-02”). ASU 2023-02 permits
reporting entities to elect to account for tax equity investments from which the income tax credits are received using the proportionalamortization method at the program level if certain conditions are met. We elected to apply the proportional accounting method toeligible affordable housing tax credit investments using the modified retrospective method. We recorded a charge to retained earnings
of $127 million, representing the cumulative effect of applying the proportional method to these investments as of January 1, 2024.
In November 2023, the FASB issued Accounting Standards Update 2023-07, “Improvements to Reportable Segment Disclosures”(“ASU 2023-07”), which requires disclosures of significant expenses by segment and interim disclosure of certain items that werepreviously required only on an annual basis. ASU 2023-07 is to be applied on a retrospective basis and is effective for our 2024 annual
Consolidated Financial Statements and interim periods beginning in 2025.
In December 2023, the FASB issued Accounting Standards Update 2023-09, “Improvements to Income Tax Disclosures” (“ASU2023-09”), which provides for additional income tax rate reconciliation and income taxes paid disclosures. ASU 2023-09 may be adopted
on a prospective or retrospective basis and is effective for fiscal years beginning after December 15, 2024, with early adoption permitted.
On March 6, 2024, the U.S. Securities Exchange Commission (“SEC”) issued Release No. 33-11275 and No. 34-99678 “TheEnhancement and Standardization of Climate-Related Disclosures for Investors” (“Climate Disclosure Rules”). Among its provisions,the Climate Disclosure Rules will require certain disclosures related to severe weather events and other natural conditions, and otherdisclosures about climate-related risks that materially impacted or are reasonably likely to materially impact the business strategy, resultsof operations or financial condition of the registrant. The Climate Disclosure Rules are currently effective for large-accelerated SEC
filers in annual reports for years beginning on or after January 1, 2025. However, on April 4, 2024, the SEC stayed implementation of
the Climate Disclosure Rules, pending the completion of judicial review.
We are evaluating the impacts ASUs 2023-07 and 2023-09 and the Climate Disclosure Rules will have on disclosures in our
Consolidated Financial Statements.

7

Notes to Consolidated Financial Statements
Note 3. Significant business acquisitions
Our long-held acquisition strategy is to acquire businesses that have consistent earning power, good returns on equity and able
and honest management. Financial results attributable to business acquisitions are included in our Consolidated Financial Statements
beginning on their respective acquisition dates.
On January 31, 2023, we acquired an additional 41.4% interest in Pilot Travel Centers, LLC (“Pilot”) for approximately $8.2
billion. The acquisition increased our interest to 80%, representing a controlling interest in Pilot for financial reporting purposes as ofthat date. Accordingly, we began consolidating Pilot’s financial statements in our Consolidated Financial Statements on February 1,
2023. Prior to that date, we accounted for our 38.6% interest in Pilot under the equity method.
Pilot operates more than 650 travel center and 75 fuel-only locations across 44 U.S. states and five Canadian provinces, primarily
under the names Pilot or Flying J, as well as large wholesale fuel and fuel marketing businesses in the U.S. Pilot also sells diesel fuel atother locations in the U.S. and Canada through various arrangements with third party travel centers and operates a water disposal
business in the oil fields sector. Since Pilot’s most significant business activities involve purchasing and selling fuel (energy) on awholesale and retail basis, and other energy-related businesses, we include Pilot within the railroad, utilities and energy sections of our
Consolidated Balance Sheets and Consolidated Statements of Earnings.
In applying the acquisition method of accounting, we remeasured our previously held 38.6% investment in Pilot to fair value asof the acquisition date. We recognized a one-time, non-cash remeasurement gain of approximately $3.0 billion in the first quarter of2023, representing the excess of the fair value of that interest over the carrying value under the equity method.
In January 2024, we acquired the remaining noncontrolling interests in Pilot for $2.6 billion, increasing our ownership of Pilot to
100%. The acquisition of a noncontrolling interest represents an equity transaction and we recorded an increase of $517 million tocapital in excess of par for the excess of the carrying value of the noncontrolling interest acquired over the consideration paid, net ofdeferred income tax liabilities arising from the transaction.
A summary of the values of Pilot’s assets acquired, liabilities assumed and noncontrolling interests as of January 31, 2023 follows(in millions).
Assets acquired

Property, plant and equipment
Goodwill*
Other intangible assets
Other assets

Liabilities assumed and noncontrolling interests$

8,015 Notes payable
6,605 Other liabilities
6,853 Liabilities assumed
7,047 Noncontrolling interests, predominantly redeemable
Liabilities assumed and noncontrolling interests
28,520 Net assets

Assets acquired$——————*
Goodwill from this acquisition is expected to be deductible for income tax purposes.

$

5,876
4,918
10,7943,361$ 14,155$ 14,365

Note 4. Investments in fixed maturity securities
Investments in fixed maturity securities are summarized as follows (in millions).
Amortized
Cost

June 30, 2024
U.S. Treasury, U.S. government corporations and agencies
Foreign governments
Corporate bonds
Other

$

$
December 31, 2023
U.S. Treasury, U.S. government corporations and agencies
Foreign governments
Corporate bonds
Other

$

$

8

Unrealized
Gains

4,773
10,4301,180
22016,603$

10,308
11,7881,212
217
23,525$$$

Unrealized
Losses

3
31
211
17
262

$

14
58
241
21
334

$

$

$

Fair
Value

(13) $(42)(5)(3)(63) $

4,763
10,4191,386
234
16,802(53) $(41)(4)(3)(101) $

10,26911,805
1,449
235
23,758

Notes to Consolidated Financial Statements
Note 4. Investments in fixed maturity securities
As of June 30, 2024, approximately 94% of our foreign government holdings were rated AA or higher by at least one of the major
rating agencies. The amortized cost and estimated fair value of fixed maturity securities at June 30, 2024 are summarized below bycontractual maturity dates (in millions). Actual maturities may differ from contractual maturities due to prepayment rights held by
issuers.

Amortized cost
Fair value

Due in one
year or lessDue after one
year throughfive years

Due after five
years throughten years$$$

11,002
10,990

4,754
4,756

577
766

Mortgagebacked
securities

Due after
ten years

$

129
139

$

141
151

Total

$

16,603
16,802

Note 5. Investments in equity securities
Investments in equity securities are summarized as follows (in millions).
Net Unrealized
Gains

Cost Basis

June 30, 2024*
Banks, insurance and financeConsumer products
Commercial, industrial and other$

28,585
14,86245,00688,453$

66,341
98,407
31,670196,418

Fair Value$

94,926113,269
76,676284,871$$$——————*
Approximately 72% of the aggregate fair value was concentrated in five companies (American Express Company – $35.1 billion;
Apple Inc. – $84.2 billion; Bank of America Corporation – $41.1 billion; The Coca-Cola Company – $25.5 billion and Chevron
Corporation – $18.6 billion).
Net Unrealized
Gains

Cost Basis

December 31, 2023*
Banks, insurance and financeConsumer products
Commercial, industrial and other$27,13634,24848,032
109,416$

51,176
166,895
26,355
244,426

Fair Value$

78,312
201,143
74,387353,842$$$——————*
Approximately 79% of the aggregate fair value was concentrated in five companies (American Express Company – $28.4 billion;
Apple Inc. – $174.3 billion; Bank of America Corporation – $34.8 billion; The Coca-Cola Company – $23.6 billion and Chevron
Corporation – $18.8 billion).
In 2019, we invested $10 billion in non-voting Cumulative Perpetual Preferred Stock of Occidental Petroleum Corporation(“Occidental”) and in Occidental common stock warrants. During 2022, we began acquiring common stock of Occidental. Our aggregate
voting interest in Occidental common stock exceeded 20% on August 4, 2022, and we adopted the equity method as of that date. See
Note 6. Our investments in the Occidental preferred stock and Occidental common stock warrants are recorded at fair value within
Commercial, industrial and other in the tables above. Such investments are not in-substance common stock under GAAP and are noteligible for the equity method.
The Occidental preferred stock accrues dividends at 8% per annum and is redeemable at the option of Occidental commencing in
2029 at a redemption price equal to 105% of the liquidation value, plus any accumulated and unpaid dividends. As of June 30, 2024,
our investment in Occidental preferred stock had an aggregate liquidation value of approximately $8.5 billion, which reflected
mandatory redemptions by Occidental during 2023 of approximately $1.5 billion. The Occidental common stock warrants allow us topurchase up to 83.86 million shares of Occidental common stock at an exercise price of $59.62 per share. The warrants are exercisable
in whole or in part until one year after the date the preferred stock is fully redeemed.
On June 30, 2024, we owned 151.6 million shares of American Express Company (“American Express”) common stock
representing 21.3% of its outstanding common stock. Since 1995, we have been party to an agreement with American Express whereby
we agreed to vote a significant portion of our shares in accordance with the recommendations of the American Express Board of
Directors. We have also agreed to passivity commitments as requested by the Board of Governors of the Federal Reserve System, whichcollectively, in our judgment, restrict our ability to exercise significant influence over the operating and financial policies of American
Express. Accordingly, we do not use the equity method with respect to our investment in American Express common stock, and wecontinue to record our investment at fair value.
9Notes to Consolidated Financial Statements
Note 6. Equity method investments
Berkshire and its subsidiaries hold investments in certain businesses that are accounted for pursuant to the equity method.
Currently, the most significant of these are our investments in the common stock of The Kraft Heinz Company (“Kraft Heinz”) andOccidental. As of June 30, 2024, we owned 26.9% of the outstanding Kraft Heinz common stock and 28.8% of the outstanding
Occidental common stock, which excludes the potential effect of the exercise of the Occidental common stock warrants.
Kraft Heinz manufactures and markets food and beverage products, including condiments and sauces, cheese and dairy, meals,
meats, refreshment beverages, coffee and other grocery products. Occidental is an international energy company, whose activities
include oil and natural gas exploration, development and production and chemicals manufacturing businesses. Occidental’s financial
information is not available in time for concurrent reporting in our Consolidated Financial Statements. Therefore, we report the equity
method effects for Occidental on a one-quarter lag.
Kraft Heinz and Occidental common stocks are publicly traded. The fair values and our carrying values of these investments areincluded in the following table (in millions).
Carrying Value
June 30,
December 31,
2024
2023

Kraft Heinz
Occidental
Other

$

13,161
16,455449
30,065$$$June 30,
2024

13,23015,410426
29,066$

Fair Value
December 31,
2023

10,486
16,090$12,035
14,552As of June 30, 2024, the excess of the carrying values over the fair values of our investments in Kraft Heinz and Occidental was
20% and 2%, respectively, of the carrying values of each investment. We evaluated these investments for other-than-temporary
impairment as of June 30, 2024. We considered our ability and intent to hold the investment until the fair value exceeds carrying value,
the magnitude and duration of the decline in fair value, the operating results of the company, as well as other factors. Based on theprevailing facts and circumstances, we concluded the recognition of an impairment charge in earnings was not required.
We also own a 50% interest in Berkadia Commercial Mortgage LLC (“Berkadia”), which is accounted for under the equity method
and is included in other in the preceding table. Jefferies Financial Group Inc. (“Jefferies”) owns the other 50% interest. Berkadia engages
in mortgage banking, investment sales and servicing of commercial/multi-family real estate loans. Berkadia’s commercial paper
borrowing capacity (currently limited to $1.5 billion) is supported by a surety policy issued by a Berkshire insurance subsidiary. Jefferies
is obligated to indemnify us for one-half of any losses incurred under the policy.
As of June 30, 2024, the carrying values of our investments in Kraft Heinz and Berkadia approximated our share of shareowners’
equity of each of these entities. The carrying value of our investment in Occidental common stock exceeded our share of its shareholders’equity as of March 31, 2024 by approximately $10 billion. Based upon the limited information available to us, we concluded the excess
represents goodwill.
Our earnings and distributions received from equity method investments are summarized in the following table (in millions). As
previously described, on February 1, 2023, we ceased accounting for Pilot under the equity method. Equity method earnings attributable
to Pilot were $105 million for the month ending January 31, 2023. The earnings we recorded in the first six months of 2024 and 2023
for Occidental represented our share of its earnings for the six months ending March 31, 2024 and 2023, respectively.
Equity in Earnings
Second Quarter
First Six Months
2024
2023
2024
2023

Kraft Heinz
Occidental
Other

$
$

27
200
25
252

$
$

265
234
12
511

$
$

242
463
40
745

10

$
$

487
604
108
1,199

Distributions Received
Second Quarter
First Six Months
2024
2023
2024
2023

$
$

130
55
14
199

$
$

130
36
21
187

$
$

260
96
18
374

$
$

260
61
21
342

Notes to Consolidated Financial Statements
Note 6. Equity method investments
Summarized consolidated financial information of Kraft Heinz follows (in millions).
June 29,2024

AssetsLiabilities$

December 30,
2023

88,79739,766

Second Quarter
2024

Sales
Net earnings attributable to Kraft Heinz common shareholders$$

90,33940,617First Six Months
2024
2023

2023

6,476
102

$

6,721
1,000

$

12,887903$

13,210
1,836

Summarized consolidated financial information of Occidental follows (in millions).
March 31,2024

AssetsLiabilities$

74,27743,310Quarter ending March 31,
2024
2023

Total revenues and other income
Net earnings attributable to Occidental common shareholders

$

6,010
718

$

September 30,
2023$

71,28742,515Six months ending March 31,
2024
2023

7,258
983

$

13,5391,747$

15,5842,710

Note 7. Investment gains (losses)
Investment gains (losses) in the second quarter and first six months of 2024 and 2023 are summarized as follows (in millions).
Second Quarter
2024
2023

Investment gains (losses):
Equity securities:
Change in unrealized investment gains (losses) during theperiod on securities held at the end of the period
Investment gains (losses) on securities sold during the period$

Fixed maturity securities:
Gross realized gains
Gross realized losses
Other$

17,252
6,633
23,885

$

1
(28)
(1)
23,857 $33,04631
33,077First Six Months
2024
2023

$

29,711 $(3,948)25,763

63,763
1,001
64,7648(25)
133,061 $

14
(40)
(4)
25,733 $

132
(77)
3,000
67,819Equity securities gains and losses include unrealized gains and losses from changes in fair values during the period on equity
securities we still own, as well as gains and losses on securities we sold during the period. Our proceeds from sales of equity securities
were approximately $97.1 billion in the first six months of 2024 and $25.8 billion in 2023. In the preceding table, investment gains andlosses on equity securities sold during the period represent the difference between the sales proceeds and the fair value of the equity
securities sold at the beginning of the applicable period or, if later, the acquisition date. Taxable gains and losses on equity securities
sold are generally the difference between the proceeds from sales and cost. Our sales of equity securities produced taxable gains of $59.6
billion in the second quarter and $73.7 billion in the first six months of 2024 compared to taxable gains of $2.4 billion in the second
quarter and $4.6 billion in the first six months of 2023. Other investment gains in the first six months of 2023 included a non-cash gainof approximately $3.0 billion from the remeasurement of our pre-existing 38.6% interest in Pilot through the application of acquisition
accounting under GAAP.

11

Notes to Consolidated Financial Statements
Note 8. Loans and finance receivables
Loans and finance receivables are summarized as follows (in millions).
June 30,
2024

Loans and finance receivables, before allowances and discounts
Allowances for credit losses
Unamortized acquisition discounts and points$

December 31,
2023

27,792(1,015)(692)
26,085$$26,289(950)(658)
24,681$Loans and finance receivables are principally manufactured home loans, and to a lesser extent, commercial loans and site-built
home loans. Reconciliations of the allowance for credit losses on loans and finance receivables for the first six months of 2024 and 2023
follow (in millions).
First Six Months
2024

Balance at the beginning of the year
Provision for credit losses
Charge-offs, net of recoveries
Balance at June 30

2023

$

950
116
(51)
1,015

$

$

856
90
(34)
912

$

As of June 30, 2024, substantially all manufactured and site-built home loans were evaluated collectively for impairment, and we
considered approximately 96% of these loans to be current as to payment status. A summary of performing and non-performing homeloans before discounts and allowances by year of loan origination as of June 30, 2024 follows (in millions).
2024

Performing
Non-performing

$
$

3,479
2
3,481

Origination Year
2022
2021

2023

$
$

5,207
6
5,213

$
$

3,814
8
3,822

$
$

3,189
10
3,199

2020

$

Prior

2,468
8
2,476

$

$
$

Total

8,715
43
8,758

$
$

26,872
77
26,949We also hold a limited number of commercial loans originated or acquired several years ago. The aggregate carrying value ofthese loans approximated $725 million at June 30, 2024 and $850 million at December 31, 2023. The loans are generally secured byreal estate properties or by other assets and are individually evaluated for expected credit losses.
Note 9. Other receivables
Other receivables are comprised of the following (in millions).
June 30,
2024

Insurance and other:
Insurance premiums receivable
Reinsurance recoverables
Trade receivables
Other
Allowances for credit losses$$
Railroad, utilities and energy:
Trade receivables
Other
Allowances for credit losses$$

December 31,
2023

19,841
5,253
15,5685,979(674)
45,967

$

5,809
853
(160)
6,502

$

$

$

19,052
7,060
14,4494,269(656)
44,174
6,034
1,228
(176)
7,086

Aggregate provisions for credit losses in the first six months with respect to receivables in the preceding table were $233 million
in 2024 and $278 million in 2023. Charge-offs, net of recoveries, in the first six months were $230 million in 2024 and $280 million in
2023.

12

Notes to Consolidated Financial Statements
Note 10. Inventories
Inventories of our insurance and other businesses are comprised of the following (in millions).
June 30,
2024

Raw materials
Work in process and otherFinished manufactured goods
Goods acquired for resale$

December 31,
2023

5,775
3,440
5,060
9,223
23,498

$

$

6,026
3,345
4,969
9,819
24,159$Inventories, materials and supplies of our railroad, utilities and energy businesses are included in other assets and wereapproximately $4.3 billion at June 30, 2024 and $4.2 billion as of December 31, 2023.
Note 11. Property, plant and equipment
A summary of property, plant and equipment of our insurance and other businesses follows (in millions).
June 30,
2024

Land, buildings and improvements
Machinery and equipment
Furniture, fixtures and other$Accumulated depreciation$

December 31,
2023

15,27728,483
5,685
49,445(27,301)
22,144$

15,05828,0105,566
48,634(26,604)
22,030$A summary of property, plant and equipment of our railroad and utilities and energy businesses follows (in millions). The utility
generation, transmission and distribution systems and interstate natural gas pipeline assets are owned by regulated public utility andnatural gas pipeline subsidiaries.
June 30,
2024

Railroad:
Land, track structure and other roadway
Locomotives, freight cars and other equipment
Construction in progress$

Accumulated depreciation
Utilities and energy:
Utility generation, transmission and distribution systems
Interstate natural gas pipeline assets
Independent power plants and otherLand, buildings and improvements
Machinery, equipment and otherConstruction in progress
Accumulated depreciation$

December 31,
2023

72,725
16,461
1,863
91,049(20,401)
70,64897,682
19,603
14,891
4,719
4,040
10,849151,784(42,525)
109,259
179,907$$

71,692
16,256
1,715
89,663(19,464)
70,19996,195
19,226
14,781
4,540
3,855
9,551
148,148(40,731)
107,417
177,616

Depreciation expense for the first six months of 2024 and 2023 is summarized below (in millions).
First Six Months
2024

Insurance and otherRailroad, utilities and energy

$
$

13

2023

1,226
3,553
4,779

$
$

1,158
3,494
4,652

Notes to Consolidated Financial Statements
Note 12. Equipment held for lease
Equipment held for lease includes railcars, aircraft and other equipment, including over-the-road trailers, intermodal tankcontainers, cranes, storage units and furniture. Equipment held for lease is summarized below (in millions).
June 30,
2024

Railcars
Aircraft
Other$

December 31,
2023

10,14813,3405,683
29,171(11,753)
17,418

Accumulated depreciation$$

10,031
12,537
5,576
28,144(11,197)
16,947$

Depreciation expense for equipment held for lease in the first six months was $695 million in 2024 and $623 million in 2023.
Fixed and variable operating lease revenues for the second quarter and first six months of 2024 and 2023 are summarized below (inmillions).
Second Quarter2024

Fixed lease revenue
Variable lease revenue

$

1,612
696
2,308

$

First Six Months
2023

$

2024

1,478
601
2,079

$

$

2023

3,164
1,366
4,530

$

$

2,895
1,228
4,123

$

Note 13. Goodwill and other intangible assets
Reconciliations of the changes in the carrying value of goodwill for the first six months of 2024 and for the year ended December
31, 2023 follow (in millions).
June 30,2024

December 31,
2023

Balance at the beginning of the year$
84,626
Business acquisitions
10
Other, including acquisition period remeasurements and foreign currency translation(225)
Balance at the end of the period*$
84,411——————* Net of accumulated goodwill impairments of $11.1 billion as of June 30, 2024 and December 31, 2023.

$

78,1197,347(840)
84,626$

Other intangible assets are summarized below (in millions).
June 30, 2024
Gross
carrying
amountInsurance and other:
Customer relationships
Trademarks and trade names
Patents and technology
Other

$

$
Railroad, utilities and energy:
Customer relationships and contracts
Trademarks and trade names
Other

$
$

December 31, 2023
Net
carrying
value

Accumulated
amortization

28,274
5,625
5,354
4,765
44,018

$

4,093
3,592
1,173
8,858

$

$

8,214
859
4,294
1,863
15,230

$

920
161
209
1,290

$

$

$

$

Gross
carrying
amount20,060
4,766
1,060
2,902
28,788

$

3,173
3,431
964
7,568

$

$

$

Net
carrying
value

Accumulated
amortization

28,305
5,619
5,238
4,826
43,988

$

4,092
3,592
1,174
8,858

$

$

$

7,901
846
4,109
1,805
14,661

$

791
98
156
1,045

$

$

$

20,404
4,773
1,129
3,021
29,327
3,301
3,494
1,018
7,813

Other intangible assets of the railroad, utilities and energy businesses are included in other assets. Intangible asset amortization
expense in the first six months was $892 million in 2024 and $872 million in 2023. Intangible assets with indefinite lives were $18.9
billion as of June 30, 2024 and December 31, 2023 and primarily related to certain customer relationships and trademarks and trade
names.

14

Notes to Consolidated Financial Statements
Note 14. Unpaid losses and loss adjustment expenses
Reconciliations of the changes in unpaid losses and loss adjustment expenses (“claim liabilities”), excluding liabilities underretroactive reinsurance contracts (see Note 15), for each of the six-month periods ended June 30, 2024 and 2023 follow (in millions).
2024

Balance at the beginning of the year:
Gross liabilities
Reinsurance recoverable on unpaid losses
Net liabilities
Incurred losses and loss adjustment expenses:
Current accident year
Prior accident years
Total
Paid losses and loss adjustment expenses:
Current accident year
Prior accident years
Total
Foreign currency effectBalance at June 30:
Net liabilities
Reinsurance recoverable on unpaid losses
Gross liabilities

$

$

2023

111,082 $(4,893)
106,189

107,472(5,025)
102,447

28,359(1,167)
27,192

29,827(1,948)27,879(9,491)(15,626)(25,117)(110)(9,968)(16,664)(26,632)
267

108,154
4,650
112,804

103,961
5,069
109,030$

Our claim liabilities under property and casualty insurance and reinsurance contracts are based upon estimates of the ultimate
claim costs associated with claim occurrences as of the balance sheet date and include estimates for incurred-but-not-reported (“IBNR”)
claims. Incurred losses and loss adjustment expenses related to insured events occurring in the current year (“current accident year”)
and events occurring in all prior years (“prior accident years”). Incurred and paid losses and loss adjustment expenses are net ofreinsurance recoveries.
We recorded net reductions of estimated ultimate liabilities for prior accident years of $1.2 billion in the first six months of 2024
and $1.9 billion in 2023, which produced corresponding reductions in incurred losses and loss adjustment expenses in those periods.
These reductions, as percentages of the net liabilities at the beginning of each year, were 1.1% in 2024 and 1.9% in 2023.
Ultimate liabilities for prior accident years of primary insurance businesses in the first six months were reduced $433 million in
2024 and $1.1 billion in 2023, primarily attributable to lower than expected private passenger auto and medical professional liability
losses. In the first six months, ultimate liabilities for prior accident years of property and casualty reinsurance businesses were reduced$734 million in 2024, primarily attributable to lower than expected property losses, and $883 million in 2023, from lower than expected
property and casualty losses.

15

Notes to Consolidated Financial Statements
Note 15. Retroactive reinsurance contracts
Retroactive reinsurance policies provide indemnification of losses and loss adjustment expenses of short-duration insurance
contracts with respect to underlying loss events that occurred prior to the contract inception date and may include significant levels ofasbestos, environmental and other mass tort claims. Retroactive reinsurance contracts are generally subject to aggregate policy limits
and thus, our exposure to such claims under these contracts is likewise limited. Reconciliations of the changes in estimated liabilities
for retroactive reinsurance unpaid losses and loss adjustment expenses for each of the six-month periods ended June 30, 2024 and 2023
follow (in millions).
2024

2023

Balance at the beginning of the year
Incurred losses and loss adjustment expenses:
Current contract year
Prior contract years
Total
Paid losses and loss adjustment expenses
Foreign currency effectBalance at June 30$

34,647$35,415

$

51
(119)
(68)
(1,066)(19)
33,494 $—15
15(1,033)24
34,421

Incurred losses and loss adjustment expenses
Deferred charge amortization and adjustments
Incurred losses and loss adjustment expenses included in the Consolidated
Statements of Earnings$(68) $
431

15
416

$

363

431

$

In the preceding table, the classification of incurred losses and loss adjustment expenses is based on the inception dates of thecontracts, which reflect when our exposure to losses began. Incurred losses and loss adjustment expenses in the Consolidated Statementsof Earnings include changes in estimated liabilities and related deferred charge asset amortization and adjustments arising from thechanges in estimated timing and amount of future loss payments. Unamortized deferred charges on retroactive reinsurance contracts
were $9.1 billion at June 30, 2024 and $9.5 billion at December 31, 2023.
Note 16. Long-duration insurance contracts
A summary of our long-duration life, annuity and health insurance benefits liabilities as of June 30, 2024 and 2023, disaggregatedfor our two primary product categories, periodic payment annuity and life and health insurance, follows. Other liabilities include
incurred-but-not reported claims and claims in the course of settlement. Amounts are in millions.
June 30,
2024

Periodic payment annuity
Life and health
Other

$
$

16

2023

10,378
4,167
2,955
17,500$$10,8205,523
3,292
19,635

Notes to Consolidated Financial Statements
Note 16. Long-duration insurance contracts
Reconciliations of periodic payment annuity and life and health insurance benefits liabilities for the first six months of 2024 and2023 follow (in millions). The information reflects the changes in discounted present values of expected future policy benefits andexpected future net premiums before reinsurance ceded. Net premiums represent the portion of expected gross premiums that are
required to provide for future policy benefits and variable expenses.
Periodic payment annuity
2024
2023

Expected future policy benefits:
Balance at the beginning of the year
Balance at the beginning of the year - original discount rates
Effect of cash flow assumption changes
Effect of actual versus expected experience
Change in benefits, net
Interest accrual
Foreign currency effectBalance at June 30 - original discount rates
Effect of changes in discount rate assumptions
Balance at June 30$$

11,212
11,681
—
4
(235)
273
15
11,738(1,360)10,378$$

10,640
11,549
—
2
(230)
266
83
11,670(850)
10,820

Expected future net premiums:
Balance at the beginning of the year
Balance at the beginning of the year - original discount rates
Effect of cash flow assumption changes
Effect of actual versus expected experience
Change in premiums, net
Interest accrual
Foreign currency effectBalance at June 30 - original discount rates
Effect of changes in discount rate assumptions
Balance at June 30

2024

$

$

$

$

Liabilities for future policy benefits:
Balance at June 30
Reinsurance recoverables
Balance at June 30, net of reinsurance recoverables$$

10,378—
10,378$$

10,820—10,820$$Life and health2023

52,66565,871(324)(12,836)
(943)
575
(459)
51,884(12,739)
39,145$

46,91658,731(326)(11,225)
(876)
507
(436)
46,375(11,397)
34,978

$

4,167
(49)
4,118

$

$

$

$

52,00863,58410(411)(1,346)852
100
62,789(12,741)
50,04846,12956,53518(251)(1,222)745
83
55,908(11,383)
44,525

5,523(1,549)3,974

Liabilities for future life and health policy benefits and reinsurance recoverables declined in the first six months of 2024, primarily
attributable to the commutations of certain life reinsurance contracts. The impacts of these contract commutations on expected future
policy benefits and future net premiums were reflected in effects of actual versus expected experience.

17

Notes to Consolidated Financial Statements
Note 16. Long-duration insurance contracts
Other information relating to our long-duration insurance liabilities as of June 30, 2024 and 2023 follows (dollars in millions).
Periodic payment annuity
2024

Undiscounted expected future gross premiums
Discounted expected future gross premiums
Undiscounted expected future benefits
Weighted average discount rate
Weighted average accretion rate
Weighted average duration$

Life and health

2023

—
—
30,867
5.7%
4.8%
16 years

$

2024

—
—
31,232
5.3%
4.8%
18 years$

2023

94,94255,787
86,2535.2%
2.7%
13 years$ 108,089
65,599103,012
5.0%
3.3%
14 yearsGross premiums earned and interest expense before reinsurance ceded for the first six months of 2024 and 2023 were as follows(in millions).
Gross premiums
2024

Periodic payment annuity
Life and health$Interest expense
2023

—
1,870

$

2024

—
1,644

$

2023

273
68

$

266
107

Note 17. Notes payable and other borrowings
Notes payable and other borrowings of our insurance and other businesses are summarized below (dollars in millions). The
weighted average interest rates and maturity date ranges are based on borrowings as of June 30, 2024.
Weighted
Average
Interest Rate

Insurance and other:Berkshire Hathaway Inc. (“Berkshire”):
U.S. Dollar denominated due 2025-2047
Euro denominated due 2025-2041
Japanese Yen denominated due 2024-2060
Berkshire Hathaway Finance Corporation (“BHFC”):
U.S. Dollar denominated due 2027-2052
Great Britain Pound denominated due 2039-2059
Euro denominated due 2030-2034
Other subsidiary borrowings due 2024-2051
Subsidiary short-term borrowings

June 30,2024

3.5% $
1.1%
0.9%

3,745
4,895
9,431

3.6%
2.5%
1.8%
4.5%
7.2%

14,466
2,177
1,334
4,623
1,269
41,940$18

December 31,
2023

$

$

3,740
6,145
8,896
14,463
2,191
1,374
4,696
1,187
42,692

Notes to Consolidated Financial Statements
Note 17. Notes payable and other borrowings
Berkshire parent company borrowings consist of senior unsecured debt. In the first six months of 2024, Berkshire repaid
approximately $1.1 billion of maturing senior notes. In April 2024, Berkshire issued ¥263.3 billion (approximately $1.7 billion) of seniornotes with interest rates ranging from 0.974% to 2.498% and maturity dates ranging from 2027 to 2054.
Borrowings of BHFC, a wholly-owned finance subsidiary of Berkshire, consist of senior unsecured notes used to fundmanufactured housing loans originated or acquired and equipment held for lease of certain subsidiaries. BHFC borrowings are fully andunconditionally guaranteed by Berkshire. Berkshire also guarantees certain debt of other subsidiaries, aggregating approximately $2.7
billion at June 30, 2024. Generally, Berkshire’s guarantee of a subsidiary’s debt obligation is an absolute, unconditional and irrevocableguarantee for the full and prompt payment when due of all payment obligations.
The carrying values of Berkshire and BHFC non-U.S. Dollar denominated senior notes (€5.85 billion, £1.75 billion and ¥1,522
billion par at June 30, 2024) reflect the applicable exchange rates as of each balance sheet date. The effects of changes in foreign currency
exchange rates during the period are recorded in earnings as a component of selling, general and administrative expenses. Changes inthe exchange rates produced pre-tax gains of $588 million in the second quarter and $1.4 billion in the first six months of 2024 and $555
million in the second quarter and $529 million in the first six months of 2023.
Notes payable and other borrowings of our railroad, utilities and energy businesses are summarized below (dollars in millions).
The weighted average interest rates and maturity date ranges are based on borrowings as of June 30, 2024.
Weighted
Average
Interest Rate

Railroad, utilities and energy:
Berkshire Hathaway Energy Company (“BHE”) and subsidiaries:
BHE senior unsecured debt due 2025-2053
Subsidiary and other debt due 2024-2064
Short-term borrowings
Pilot Travel Centers (“Pilot”) and subsidiaries
Burlington Northern Santa Fe (“BNSF”) and subsidiaries due 2024-2097

June 30,2024

4.4% $
4.6%
6.2%—

December 31,
2023

13,10443,367
985

$

—

4.7%
$

24,232
81,688$

13,101
39,072
4,148
5,776
23,48285,579BHE subsidiary debt represents amounts issued pursuant to separate financing agreements. Substantially all of the assets of certain
BHE subsidiaries are, or may be, pledged or encumbered to support or otherwise secure such debt. These borrowing arrangements
generally contain various covenants, including covenants which pertain to leverage ratios, interest coverage ratios and/or debt service
coverage ratios. In the first six months of 2024, BHE subsidiaries issued $5.4 billion of term debt with a weighted average interest rateof 5.4% and maturity dates ranging from 2029 to 2055 and BHE and its subsidiaries repaid term debt and short-term borrowings
aggregating approximately $4.0 billion.
As of December 31, 2023, Pilot’s borrowings primarily represented secured syndicated loans. In March, 2024, certain Berkshire
insurance subsidiaries loaned $5.7 billion to Pilot, which Pilot used to prepay its then outstanding third-party borrowings. BNSF’s
borrowings are primarily senior unsecured debentures. In the second quarter of 2024, BNSF issued $1.3 billion of 5.5% debentures due
in 2055 and repaid $500 million of maturing debentures. As of June 30, 2024, BHE, BNSF and their subsidiaries were in compliancewith all applicable debt covenants. Berkshire does not guarantee any debt, borrowings or lines of credit of BHE, BNSF or theirsubsidiaries.
Unused lines of credit and commercial paper capacity to support operations and provide additional liquidity for our subsidiaries
were approximately $11.3 billion at June 30, 2024, of which approximately $10.1 billion related to BHE and its subsidiaries.

19

Notes to Consolidated Financial Statements
Note 18. Fair value measurements
Our financial assets and liabilities are summarized below, with fair values shown according to the fair value hierarchy (inmillions). The carrying values of cash and cash equivalents, U.S. Treasury Bills, other receivables and accounts payable, accruals andother liabilities are considered to be reasonable estimates of or otherwise approximate the fair values.
Carrying
Value

June 30, 2024
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations
and agencies
Foreign governments
Corporate bonds
Other
Investments in equity securities
Investments in Kraft Heinz & Occidental common stock
Loans and finance receivables
Derivative contract assets (1)Derivative contract liabilities (1)Notes payable and other borrowings:
Insurance and otherRailroad, utilities and energy

$

4,763
10,4191,386
234
284,871
29,61626,085241
281
41,94081,688Fair Value

$

4,763
10,4191,386
234
284,871
26,57625,555241
281
37,20474,069Level 1$

Level 2

4,729
10,197——274,502
26,576
—
39
2
—
—

$

34
222
841
234
10
—
824
184
138

Level 3$37,17974,069December 31, 2023
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations
and agencies$
10,269 $10,269 $10,234 $35
Foreign governments
11,805
11,805
11,559246
Corporate bonds
1,449
1,449
—
860
Other
235
235
—
235
Investments in equity securities
353,842353,842
343,358
10
Investments in Kraft Heinz & Occidental common stock
28,64026,587
26,587—Loans and finance receivables
24,681
24,190—892
Derivative contract assets (1)
334
334
39
282
Derivative contract liabilities (1)
213
213
7
111
Notes payable and other borrowings:
Insurance and other
42,692
39,184—
39,153
Railroad, utilities and energy
85,57981,036—81,036——————(1)
Assets are included in other assets and liabilities are included in accounts payable, accruals and other liabilities.

—
—
545
—
10,359—24,731
18
141
25
—

$

—
—
589
—
10,474—23,29813
95
31—

The fair values of substantially all of our financial instruments were measured using market or income approaches. The hierarchy
for measuring fair value consists of Levels 1 through 3, which are described below.
Level 1 – Inputs represent unadjusted quoted prices for identical assets or liabilities exchanged in active markets.
Level 2 – Inputs include directly or indirectly observable inputs (other than Level 1 inputs) such as quoted prices for similar assets
or liabilities exchanged in active or inactive markets; quoted prices for identical assets or liabilities exchanged in inactive markets; other
inputs that may be considered in fair value determinations of the assets or liabilities, such as interest rates and yield curves, volatilities,
prepayment speeds, loss severities, credit risks and default rates; and inputs that are derived principally from or corroborated byobservable market data by correlation or other means. Pricing evaluations generally reflect discounted expected future cash flows, which
incorporate yield curves for instruments with similar characteristics, such as credit ratings, estimated durations and yields for other
instruments of the issuer or entities in the same industry sector.

20

Notes to Consolidated Financial Statements
Note 18. Fair value measurements
Level 3 – Inputs include unobservable inputs used in the measurement of assets and liabilities. Management is required to use its
own assumptions regarding unobservable inputs because there is little, if any, market activity in the assets or liabilities and it may beunable to corroborate the related observable inputs. Unobservable inputs require management to make certain projections andassumptions about the information that would be used by market participants in valuing assets or liabilities.
Reconciliations of significant assets and liabilities measured and carried at fair value on a recurring basis with the use of significant
unobservable inputs (Level 3) for the six months ended June 30, 2024 and 2023 follow (in millions).
Balance atJanuary 1

Investments in equity securities:
2024
2023

$

Gains (losses)
in earnings

10,468
12,169

$

(114)
(86)

Acquisitions(dispositions)$—(1,286)

Balance atJune 30$

10,354
10,797

Quantitative information as of June 30, 2024 for the significant assets and liabilities measured and carried at fair value on arecurring basis with the use of significant unobservable inputs (Level 3) follows (dollars in millions).
Fair
Value

Investments in equity securities:
Preferred stock$

Common stock warrants

Principal Valuation
Techniques

8,441

Discounted cash flow

1,913

Warrant pricing model

Unobservable
InputsExpected duration
Discounts for liquidity
and subordination
Expected duration
Volatility

Weighted
Average

5 years
372 bps
5 years
41%

Investments in equity securities in the preceding table include our investments in certain preferred stock and common stock
warrants that do not have readily determinable market values as defined by GAAP. These investments are private placements with
contractual terms that restrict transfers and currently prevent us from economically hedging our investments. We applied discounted
cash flow techniques in valuing the preferred stock and we made assumptions regarding the expected duration of the investment and theeffects of subordination in liquidation. In valuing the common stock warrants, we used a warrant valuation model. While most of the
inputs to the warrant model are observable, we made assumptions regarding the expected duration and volatility.
Note 19. Common stock
Changes in Berkshire’s issued, treasury and outstanding common stock during the first six months of 2024 are shown in the tablebelow. In addition to our common stock, 1,000,000 shares of preferred stock are authorized, but none are issued.
Class A, $5 Par Value(1,650,000 shares authorized)
IssuedTreasury
Outstanding

Balance at December 31, 2023
Conversions of Class A to
Class B common stock
Treasury stock acquired
Balance at June 30, 2024

Class B, $0.0033 Par Value(3,225,000,000 shares authorized)
IssuedTreasury
Outstanding

639,328(71,553)

567,775

1,528,152,352(217,590,844)

1,310,561,508(9,686)—629,642—(4,787)(76,340)(9,686)(4,787)553,302

14,529,000—
1,542,681,352——(217,590,844)

14,529,000—
1,325,090,508

Each Class A common share is entitled to one vote per share. Class B common stock possesses dividend and distribution rights
equal to one-fifteen-hundredth (1/1,500) of such rights of Class A common stock. Each Class B common share possesses voting rights
equal to one-ten-thousandth (1/10,000) of the voting rights of a Class A share. Unless otherwise required under Delaware General
Corporation Law, Class A and Class B common shares vote as a single class. Each share of Class A common stock is convertible, at theoption of the holder, into 1,500 shares of Class B common stock. Class B common stock is not convertible into Class A common stock.
On an equivalent Class A common stock basis, there were 1,436,696 shares outstanding as of June 30, 2024 and 1,441,483 shares
outstanding as of December 31, 2023.

21

Notes to Consolidated Financial Statements
Note 19. Common stock
Since we have two classes of common stock, we provide earnings per share data on the Consolidated Statements of Earnings foraverage equivalent Class A shares outstanding and average equivalent Class B shares outstanding. Class B shares are economicallyequivalent to one-fifteen-hundredth (1/1,500) of a Class A share. Average equivalent Class A shares outstanding represents average
Class A shares outstanding plus one-fifteen-hundredth (1/1,500) of the average Class B shares outstanding. Average equivalent Class B
shares outstanding represents average Class B shares outstanding plus 1,500 times the average Class A shares outstanding.
Berkshire’s common stock repurchase program permits Berkshire to repurchase its shares any time that Warren Buffett,
Berkshire’s Chairman of the Board and Chief Executive Officer, believes that the repurchase price is below Berkshire’s intrinsic value,conservatively determined. The program continues to allow share repurchases in the open market or through privately negotiatedtransactions and does not specify a maximum number of shares to be repurchased. However, repurchases will not be made if they would
reduce the value of Berkshire’s consolidated cash, cash equivalents and U.S. Treasury Bill holdings below $30 billion. The repurchaseprogram does not obligate Berkshire to repurchase any specific dollar amount or number of Class A or Class B shares and there is no
expiration date to the program.
Note 20. Income taxes
Our consolidated effective income tax rates were 20.0% in the second quarter and 19.5% in the first six months of 2024 compared
to 20.3% in the second quarter and 20.2% in the first six months of 2023. Our effective income tax rate normally reflects recurring
benefits from dividends-received deductions applicable to investments in certain equity securities and production tax credits related towind-powered electricity generation placed in service in the U.S. Our periodic effective income tax rate will also vary due to the changes
in mix of pre-tax earnings, including realized and unrealized investment gains or losses with respect to our investments in equity
securities, the amount of non-deductible goodwill impairment charges and other expenses and the underlying income tax rates applicablein the various taxing jurisdictions.
On August 16, 2022, the Inflation Reduction Act of 2022 (“the 2022 Act”) was signed into law. The 2022 Act contains numerous
provisions, including a 15% corporate alternative minimum income tax (“CAMT”) on “adjusted financial statement income,” expanded
tax credits for clean energy incentives and a 1% excise tax on corporate stock repurchases. The provisions of the 2022 Act are effective
for tax years beginning after December 31, 2022. The extent to which the Company incurs CAMT will depend on the facts andcircumstances of the given tax year. We do not expect to incur a CAMT liability in 2024. The Internal Revenue Service and the U.S.
Department of Treasury may release additional guidance in the future. We will continue to evaluate the impact of the 2022 Act as moreguidance becomes available.
The Organization for Economic Co-operation and Development has issued Pillar Two model rules introducing a new global
minimum tax of 15% intended to be effective on January 1, 2024. While the U.S. has not yet adopted the Pillar Two rules, various othergovernments around the world are enacting legislation. As currently designed, Pillar Two will ultimately apply to our worldwide
operations. Considering we do not have material operations in jurisdictions with income tax rates lower than the Pillar Two minimum,
these rules are not expected to materially increase our global tax costs. There remains uncertainty as to the final Pillar Two model rules.
We will continue to monitor U.S. and global legislative action related to Pillar Two for potential impacts.
Note 21. Accumulated other comprehensive income
A summary of the net changes in after-tax accumulated other comprehensive income attributable to Berkshire Hathaway
shareholders for the six months ending June 30, 2024 and 2023 follows (in millions).
Unrealized
gains (losses)
on investments

First six months of 2024
Balance at the beginning of the year
Other comprehensive income
Balance at the end of the period
First six months of 2023
Balance at the beginning of the year
Other comprehensive income
Balance at the end of the period

$
$

$
$

Foreigncurrencytranslation

Long-duration
insurance
contracts

Defined benefit
pension plans

190 $
(22)
168 $

(5,393) $(747)(6,140) $

1,353
684
2,037

$

(187) $
174(13) $(6,142) $592(5,550) $

1,541
71
1,612

$

22

$

$

Other

Total

(97) $(1)(98) $

184 $
(6)
178 $

(3,763)(92)(3,855)(552) $
41(511) $

288 $
(66)
222 $

(5,052)812(4,240)Notes to Consolidated Financial Statements
Note 22. Supplemental cash flow information
A summary of supplemental cash flow information follows (in millions).
First Six Months
2024

Cash paid during the period for:
Income taxes
Interest:
Insurance and otherRailroad, utilities and energy
Non-cash investing and financing activities:
Liabilities assumed in connection with business acquisitions

$

2023

2,159

$

2,962

671
1,797

725
1,857

19

10,815Note 23. Contingencies and commitments
We are parties in a variety of legal actions that routinely arise out of the normal course of business, including legal actions seeking
to establish liability directly through insurance contracts or indirectly through reinsurance contracts issued by Berkshire subsidiaries.
Plaintiffs occasionally seek punitive or exemplary damages. We do not believe that such normal and routine litigation will have amaterial effect on our financial condition or results of operations.
PacifiCorp, a wholly-owned subsidiary of Berkshire’s 92% owned subsidiary, Berkshire Hathaway Energy Company (“BHE”),
operates as a regulated electric utility in Oregon and other Western states. HomeServices of America, Inc. is a wholly-owned subsidiaryof BHE. Certain legal matters related to these entities are described below.
PacifiCorp
In September 2020, a severe weather event resulting in high winds, low humidity and warm temperatures, contributed to several
major wildfires, which resulted in real and personal property and natural resource damage, personal injuries and loss of life andwidespread power outages in Oregon and Northern California. These wildfires spread across certain parts of PacifiCorp’s service
territory and surrounding areas across multiple counties in Oregon and California, including Siskiyou County, California; Jackson
County, Oregon; Douglas County, Oregon; Marion County, Oregon; Lincoln County, Oregon; and Klamath County, Oregon, burningover 500,000 acres in aggregate. Third-party reports for these wildfires (the “2020 Wildfires”) indicate over 2,000 structures destroyed,
including residences; several other structures damaged; multiple individuals injured; and several fatalities.
According to the California Department of Forestry and Fire Protection, a wildfire began on July 29, 2022, in the Oak Knoll
Ranger District of the Klamath National Forest in Siskiyou County, California located in PacifiCorp’s service territory (the “2022Wildfire”) burning over 60,000 acres. Third-party reports indicate that the 2022 Wildfire resulted in 11 structures damaged, 185
structures destroyed, 12 injuries and four fatalities. The 2020 Wildfires and 2022 Wildfire, together, are referred to as the “Wildfires”.
Investigations into the cause and origin of each of the Wildfires are complex and ongoing and have been or are being conductedby various entities, including the U.S. Forest Service, the California Public Utilities Commission, the Oregon Department of Forestry,the Oregon Department of Justice, PacifiCorp and various experts engaged by PacifiCorp.
As of the date of this filing, a significant number of complaints and demands alleging similar claims related to the Wildfires havebeen filed in Oregon and California, including a class action complaint in Oregon associated with the 2020 Wildfires for which certain
jury verdicts were issued as described below. The plaintiffs seek damages for economic losses, noneconomic losses, including mental
suffering, emotional distress, personal injury and loss of life, as well as punitive damages, other damages and attorneys’ fees. Several
insurance carriers have filed subrogation complaints in Oregon and California with allegations similar to those made in the
aforementioned complaints. Additionally, the U.S. and Oregon Departments of Justice have informed PacifiCorp that they arecontemplating filing actions against PacifiCorp in connection with certain of the Oregon 2020 Wildfires. PacifiCorp is actively
cooperating with the U.S. and Oregon Departments of Justice on resolving these alleged claims through alternative dispute resolution.
As of June 30, 2024, amounts sought in outstanding complaints and demands filed in Oregon and in certain demands in California
approximated $3 billion, excluding any doubling or trebling of damages included in the complaints and the mass complaints described
below that seek $43 billion. Generally, the complaints filed in California do not specify damages sought and are excluded from thisamount.
Based on available information to date, we believe it is probable that losses will be incurred associated with the Wildfires. Final
determinations of liability will only be made following the completion of comprehensive investigations, litigation and similar processes.

23Notes to Consolidated Financial Statements
Note 23. Contingencies and commitments
On September 30, 2020, a class action complaint against PacifiCorp was filed captioned Jeanyne James et al. v. PacifiCorp et al.
(the “James case”), in Oregon Circuit Court in Multnomah County, Oregon (the “Multnomah Court”) in connection with the 2020
Wildfires. In April 2023, a jury trial for the James case with respect to 17 named plaintiffs began in Multnomah Court. In June 2023,
the jury issued its verdict finding PacifiCorp liable to the 17 named plaintiffs and to the class with respect to four wildfires. The jury
found PacifiCorp’s conduct grossly negligent, reckless and willful as to each plaintiff and the entire class. The jury awarded the 17
named plaintiffs $90 million of damages, including $4 million of economic damages, $68 million of noneconomic damages and$18 million of punitive damages based on a 0.25 multiplier of the economic and noneconomic damages.
In September 2023, the Multnomah Court ordered trial dates for three damages phase trials for the James case, wherein plaintiffs
in each of the three damages phase trials would present evidence regarding their damages.
In January 2024, the Multnomah Court entered a limited judgment and money award for the June 2023 James case verdict of $92
million based on the amounts awarded by the jury, as well as doubling of the economic damages and offsetting of insurance proceeds
received by plaintiffs. In January 2024, PacifiCorp filed a notice of appeal associated with the June 2023 verdict in the James case,including whether the case can proceed as a class action, and filed a motion to stay further damages phase trials. On February 14, 2024,
the Oregon Court of Appeals denied PacifiCorp’s request to stay the damages phase trials. On February 13, 2024, the 17 named plaintiffs
filed a notice of cross-appeal as to the January 2024 limited judgment and money award. The appeals process and further actions could
take several years.
In January 2024, the jury for the first James case damages phase trial awarded nine plaintiffs $62 million of damages, including$6 million of economic damages and $56 million of noneconomic damages. Subsequently, the Multnomah Court increased the economic
damages by $6 million and added $16 million of punitive damages, bringing the aggregate damages awarded to $84 million. In March
2024, the Multnomah Court granted in large part PacifiCorp’s request to offset the damage awards by deducting insurance proceeds
received by any of the nine plaintiffs. In April 2024, the Multnomah Court entered a limited judgment and money award of $80 million
for the January 2024 James verdict, based on the aggregate damages awarded, offset by insurance proceeds received by plaintiffs.
In March 2024, the jury for the second James case damages phase trial awarded ten plaintiffs $42 million of damages, including$12 million of doubled economic damages and $30 million of noneconomic and punitive damages. In May 2024, the Multnomah Court
granted PacifiCorp’s request to offset the damage awards by deducting insurance proceeds received by any of the ten plaintiffs. In June
2024, the Multnomah Court entered a limited judgment and money award of $38 million for the March 2024 James verdict, based on
the aggregate amounts awarded, offset by insurance proceeds received by plaintiffs.
The January, April and June 2024 limited judgments created liens against PacifiCorp, attaching a debt for the money awards. In
each instance, PacifiCorp posted a supersedeas bond, which stays any effort to seek payment of the judgment pending final resolutionof any appeals. Under ORS 82.010, interest at a rate of 9% per annum will accrue on the judgment commencing at the date the judgment
was entered until the entire money award is paid, amended or reversed by an appellate court. PacifiCorp amended its January 2024
appeal of the June 2023 James verdict to include the January 2024 jury verdict and further amended its appeal of the June 2023 verdict
to include the March 2024 jury verdict. In March 2024, settlement was reached with five commercial timber plaintiffs in the James case,and the jury trial scheduled for April 2024 was cancelled.
In April, May and July 2024, four separate mass complaints against PacifiCorp naming 1,443 individual class members were filed
in the Multnomah Court referencing the James case as the lead case. These mass complaints make allegations seeking economic,
noneconomic and punitive damages, as well as doubling of economic damages. PacifiCorp believes the magnitude of damages soughtby the class members in the James case mass complaints to be of remote likelihood of being awarded based on the amounts awarded in
the jury verdicts described above that are being appealed.
A provision for a loss contingency is recorded when it is probable a liability has been incurred and the amount of loss can bereasonably estimated. PacifiCorp evaluates the related range of reasonably estimated losses and records a loss based on its best estimate
within that range or the lower end of the range if there is no better estimate.
Estimated probable losses associated with the Wildfires were based on the information available to the date of this filing, including(i) ongoing cause and origin investigations; (ii) ongoing settlement and mediation discussions; (iii) other litigation matters and upcoming
legal proceedings; and (iv) the status of the James case. Wildfire estimated losses include estimates for fire suppression costs, real andpersonal property damages, natural resource damages and noneconomic damages such as personal injury damages and loss of life
damages that are considered probable of being incurred and that it is able to reasonably estimate at this time, and which is subject tochange as additional relevant information becomes available.

24

Notes to Consolidated Financial Statements
Note 23. Contingencies and commitments
Through June 30, 2024, PacifiCorp recorded cumulative estimated probable Wildfire losses, before taxes and expected related
insurance recoveries, of approximately $2.7 billion, of which $251 million was recorded in the first six months of 2024 and $541 million
was recorded in the first six months of 2023. Expected insurance recoveries recorded to date in connection with the Wildfires are $534
million, including $133 million in the first six months of 2023. No further insurance recoveries are expected to be available. Cumulative
Wildfire loss payments to date through June 30, 2024 were approximately $775 million and an additional $246 million was paid
subsequent to June 30, 2024. To date, PacifiCorp has reached additional settlements associated with the Wildfires totaling $199 million
that have yet to be paid. As a result of the settlements, various scheduled trials have been cancelled. Estimated unpaid liabilities for the
Wildfires were approximately $1.9 billion at June 30, 2024.
It is reasonably possible PacifiCorp will incur significant additional Wildfire losses beyond the amounts currently accrued;
however, it is currently unable to reasonably estimate the range of possible additional losses that could be incurred due to the numberof properties and parties involved, including claimants in the class to the James case, the variation in those types of properties and theultimate outcome of legal actions.
HomeServices of America, Inc.
HomeServices of America, Inc. (“HomeServices”) is currently defending against several antitrust cases, all in federal district
courts. In each case, plaintiffs claim HomeServices and certain of its subsidiaries (and in one case BHE) conspired with co-defendants
to artificially inflate real estate commissions by following and enforcing multiple listing service (“MLS”) rules that require listing agentsto offer a commission split to cooperating agents in order for the property to appear on the MLS (“Cooperative Compensation Rule”).
None of the complaints specify damages sought. However, two cases also allege Texas state law deceptive trade practices claims, forwhich plaintiffs have provided written notice of the damages sought totaling approximately $9 billion by separate notice as required by
Texas law.
In one of these cases, Burnett (formerly Sitzer) et al. v. HomeServices of America, Inc. et al. (the “Burnett case”), a jury trial in
the U.S. District Court for the Western District of Missouri commenced on October 16, 2023, and the jury returned a verdict for theplaintiffs on October 31, 2023, finding that the named defendants participated in a conspiracy to follow and enforce the Cooperative
Compensation Rule, which conspiracy had the purpose or effect of raising, inflating, or stabilizing broker commission rates paid byhome sellers. The jury further found that the class plaintiffs had proved damages in the amount of $1.8 billion. Joint and several liability
applies for the co-defendants. Federal law authorizes trebling of damages and the award of pre-judgment interest and attorney fees. To
date, all co-defendants have reached settlements with the plaintiffs. The U.S District Court approved certain of these settlements in May
2024, which has been appealed to the U.S. Court of Appeals for the Eighth Circuit.
In April 2024, HomeServices agreed to terms with the plaintiffs to settle all claims asserted against HomeServices and its
subsidiaries in the Burnett case as part of a proposed nationwide class settlement. The final settlement agreement, which includes
scheduled payments over the next four years aggregating $250 million, has yet to be filed with the court and is ultimately subject tocourt approval. If the settlement is not approved by the court, HomeServices intends to vigorously appeal on multiple grounds the jury’s
findings and damage award in the Burnett case, including whether the case can proceed as a class action. The appeals process and further
actions could take several years.
Berkshire and certain of its subsidiaries are also involved in other kinds of legal actions, some of which assert or may assert claims
or seek to impose fines and penalties. We currently believe that liabilities that may arise as a result of such other pending legal actions
will not have a material effect on our consolidated financial condition or results of operations.

25

Notes to Consolidated Financial Statements
Note 24. Revenues from contracts with customers
The following tables summarize customer contract revenues disaggregated by reportable segment and the source of the revenue
for the second quarter and first six months of 2024 and 2023 (in millions). Other revenues, which are not considered to be revenues fromcontracts with customers under GAAP, are primarily insurance premiums earned, interest, dividend and other investment income andleasing revenues.

Three months ending June 30, 2024
Manufactured products:
Industrial and commercial
Building
Consumer
Grocery and convenience store distribution
Food and beverage distribution
Auto sales
Other retail and wholesale distribution
ServiceElectricity, natural gas and fuel
Total
Other revenues

Manufacturing

McLaneServiceandRetailing

$

7,459
5,233
4,588
—
—
—
843
402
—
18,525
1,282
19,807

$

—
—
—
7,500
4,478
—
—
245
—
12,22348$ 12,271

$

55
—
—
—
—
2,714
3,741
1,437
—
7,947
1,975
$ 9,922

$

—
—
—
—
—
—
—
5,698
—
5,698
89
$ 5,787

$

—
—
—
—
—
—
—
1,204
4,977
6,181
299
$ 6,480

$

—
—
—
—
—
—
716
68
12,161
12,94539$ 12,984

$

—
—
—
—
—
—
—
—
—
—
26,402$ 26,402$

14,669
9,907
8,781
—
—
—
1,662
779
—
35,7982,520
38,318

$

$

$

$

$

$

$ 14,776
9,907
8,781
15,102
8,914
5,266
10,501
17,51734,046
124,81058,712$183,522$
Six months ending June 30, 2024
Manufactured products:
Industrial and commercial
Building
Consumer
Grocery and convenience store distribution
Food and beverage distribution
Auto sales
Other retail and wholesale distribution
ServiceElectricity, natural gas and fuel
Total
Other revenues

$

$

—
—
—
15,102
8,914
—
—
466
—
24,48289$ 24,571

26

107
—
—
—
—
5,266
7,509
2,814
—
15,696
3,898$ 19,594

BNSF

—
—
—
—
—
—
—
11,316—
11,316108$ 11,424

Berkshire
Hathaway
Energy

—
—
—
—
—
—
—
2,010
10,106
12,116629$ 12,745

Pilot

—
—
—
—
—
—
1,330
132
23,94025,40276$ 25,478

Insurance,
Corporate
and other

—
—
—
—
—
—
—
—
—
—
51,392$ 51,392

Total

7,514
5,233
4,588
7,500
4,478
2,714
5,300
9,054
17,13863,51930,134$ 93,653

Notes to Consolidated Financial Statements
Note 24. Revenues from contracts with customers

Three months ending June 30, 2023
Manufactured products:
Industrial and commercial
Building
Consumer
Grocery and convenience store distribution
Food and beverage distribution
Auto sales
Other retail and wholesale distribution
ServiceElectricity, natural gas and fuel
Total
Other revenues

Manufacturing

McLaneServiceandRetailing

$

7,221
5,178
4,343
—
—
—
814
347
—
17,903
1,171
19,074

$

—
—
—
7,535
4,902
—
—
213
—
12,65047$ 12,697

$

54
—
—
—
—
2,789
4,138
1,390
—
8,371
1,738
$ 10,109

$

—
—
—
—
—
—
—
5,791
—
5,791
17
$ 5,808

$

—
—
—
—
—
—
—
1,217
4,779
5,996
354
$ 6,350

$

—
—
—
—
—
—
681
88
13,903
14,67261$ 14,733

$

—
—
—
—
—
—
—
—
—
—
23,732$ 23,732$

14,450
9,936
8,378
—
—
—
1,613
701
—
35,0782,261
37,339

$

$

$

$

$

$

$ 14,569
9,936
8,378
15,3289,664
5,354
11,084
17,82732,988125,128
52,768$177,896$
Six months ending June 30, 2023*
Manufactured products:
Industrial and commercial
Building
Consumer
Grocery and convenience store distribution
Food and beverage distribution
Auto sales
Other retail and wholesale distribution
ServiceElectricity, natural gas and fuel
Total
Other revenues

$

$

—
—
—
15,328
9,664
—
—
497
—
25,48989$ 25,578

Berkshire
Hathaway
Energy

BNSF

119
—
—
—
—
5,354
8,368
2,716
—
16,557
3,454$ 20,011

—
—
—
—
—
—
—
11,776—
11,77633$ 11,809

—
—
—
—
—
—
—
2,028
10,07012,098691$ 12,789

Insurance,
Corporate
and other

Pilot

—
—
—
—
—
—
1,103
109
22,91824,13099$ 24,229

—
—
—
—
—
—
—
—
—
—
46,141$ 46,141

Total

7,275
5,178
4,343
7,535
4,902
2,789
5,633
9,046
18,682
65,38327,120$ 92,503——————*
Revenues from Pilot are for the five months ending June 30, 2023.
A summary of the transaction price allocated to the significant unsatisfied remaining performance obligations related to contracts
with expected durations exceeding one year as of June 30, 2024 and the timing of when the performance obligations are expected to besatisfied follows (in millions).
Less than
12 months

Electricity, natural gas and fuelOther sales and service contracts

$

27

3,099
3,333

Greater than
12 months$

19,398
5,529

Total

$

22,4978,862

Notes to Consolidated Financial Statements
Note 25. Business segment data
Our operating businesses include a large and diverse group of insurance, freight rail transportation, utilities and energy,
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 and marketing, selling and distribution characteristics, even though those business units are operated under separate
local management. We acquired control of Pilot on January 31, 2023. In this presentation, revenues and pre-tax earnings of the Pilot
segment in 2023 are for the five months ending June 30. Prior to January 31, 2023, our earnings from Pilot were determined under theequity method and were included in earnings from non-controlled businesses. Revenues and earnings before income taxes by segment
for the second quarter and first six months of 2024 and 2023 were as follows (in millions).
Second Quarter
2024
2023

Revenues of Operating Businesses
Insurance:
Underwriting:
GEICO
Berkshire Hathaway Primary Group
Berkshire Hathaway Reinsurance Group
Investment income
Total insurance
BNSF
BHE
Pilot
Manufacturing
McLaneService and retailing$

Reconciliation to consolidated amountCorporate, eliminations and other$

10,469
4,656
6,828
4,077
26,0305,805
6,492
12,99919,84012,458
9,947
93,571
82
93,653

$

$

9,714
4,233
6,614
2,918
23,4795,828
6,362
14,754
19,102
12,883
10,141
92,549First Six Months
2024
2023

$

20,703
9,197
13,527
7,241
50,668
11,465
12,76925,50238,36924,933
19,650183,356(46)
92,503 $166
183,522

Second Quarter
2024
2023

Earnings Before Income Taxes of Operating Businesses
Insurance:
Underwriting:
GEICO
Berkshire Hathaway Primary Group
Berkshire Hathaway Reinsurance Group
Investment income
Total insurance
BNSF
BHE
Pilot
Manufacturing
McLaneService and retailing$

Reconciliation to consolidated amount
Investment gains (losses)
Interest expense, not allocated to segments
Non-controlled businesses
Corporate, eliminations and other
$

28

1,786
279
782
4,068
6,915
1,622
326
199
3,129
142
969
13,302$

23,857
(119)
252
845
38,137 $

514
272
827
2,912
4,525
1,615
624
186
3,103
129
1,262
11,444$$

19,3408,19412,823
5,310
45,667
11,847
12,81324,26237,391
25,942
20,072
177,994(98)
177,896First Six Months
2024
2023

$

33,061
(103)
511
522
45,435 $

3,714
765
1,694
7,220
13,393
3,141
758
269
6,043
307
1,877
25,788

$

1,217
540
1,058
5,297
8,112
3,264
847
322
5,714
242
2,483
20,98425,733
(215)
745
1,792
53,843 $67,819
(217)
1,199
402
90,187

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations
Net earnings attributable to Berkshire Hathaway shareholders for the second quarter and first six months ended June 30, 2024 and2023 are disaggregated in the table that follows. Amounts are after deducting income taxes and exclude earnings attributable tononcontrolling interests (in millions).
Second Quarter
2024
2023

Insurance – underwriting$
2,263 $
1,247 $
Insurance – investment income
3,320
2,369
BNSF
1,227
1,264
Berkshire Hathaway Energy (“BHE”)
655
785
Pilot Travel Centers (“Pilot”)
171
114
Manufacturing, service and retailing
3,209
3,389
Non-controlled businesses*
220
535
Investment gains
18,75025,869
Other
533
340
Net earnings attributable to Berkshire Hathaway shareholders$
30,348 $35,912 $——————*
Includes certain businesses in which Berkshire had between a 20% and 50% ownership interest.

First Six Months
2024
2023

4,861
5,918
2,370
1,372
238
6,230
625
20,2301,206
43,050

$

$

2,158
4,338
2,511
1,201
197
6,371
1,103
53,308229
71,416

Through our subsidiaries, we engage in numerous diverse business activities. We manage our operating businesses on an unusuallydecentralized basis. There are few centralized or integrated business functions. Our senior corporate management team participates inand is ultimately responsible for significant capital allocation decisions, investment activities and the selection of the Chief Executive
to head each of the operating businesses. The business segment data (Note 25 to the accompanying Consolidated Financial Statements
and Note 26 to the Consolidated Financial Statements included in Form 10-K for the year ended December 31, 2023) should be read in
conjunction with this discussion.
Our periodic operating results may be affected in future periods due to impacts of ongoing macroeconomic and geopolitical events,
as well as changes in industry or company-specific factors or events. We cannot reliably predict the future economic effects of thesefactors or events on our businesses.
Insurance underwriting after-tax earnings increased $1.0 billion in the second quarter and $2.7 billion in the first six months of2024 compared to 2023. Earnings in 2024 benefited from improved operating results at GEICO. We also experienced no significant
catastrophe events in the first six months of 2024, while after-tax losses from significant catastrophe events during the first six monthsof 2023 were approximately $450 million. After-tax earnings from insurance investment income increased $951 million in the second
quarter and $1.6 billion in the first six months of 2024 compared to 2023, driven by higher interest income from our short-term
investments in U.S. Treasury Bills.
After-tax earnings of BNSF declined 2.9% in the second quarter and 5.6% in the first six months of 2024 compared to 2023.
Earnings in 2024 reflected litigation-related charges but benefited from improved employee productivity and lower costs. After-tax
earnings of BHE declined $130 million in the second quarter and increased $171 million in the first six months of 2024 compared to2023. The earnings decrease in the second quarter reflected lower earnings from the U.S. utilities and higher earnings from natural gas
pipelines, whereas in the first six months of 2024, earnings increases were generated in the U.S. utilities, natural gas pipelines and otherenergy businesses, partly offset by lower earnings from the real estate brokerage businesses. BHE’s results in 2024 and 2023 were
negatively affected by litigation-related costs.
As disclosed in Note 3 to the accompanying Consolidated Financial Statements, we increased our ownership in Pilot from 38.6%
to 80% on January 31, 2023, and further increased our ownership in Pilot to 100% on January 16, 2024. We began consolidating Pilot’s
results of operations on February 1, 2023. For the month ended January 31, 2023, earnings from Pilot on our 38.6% interest were
determined under the equity method and were included in earnings from non-controlled businesses in the preceding table.
After-tax earnings from our manufacturing, service and retailing businesses decreased 5.3% in the second quarter and 2.2% in thefirst six months of 2024 compared to 2023. Earnings in 2024 reflected increases at several of our manufacturing businesses, which weremore than offset by lower earnings from our service and retailing businesses.

29

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations
Investment gains predominantly derive from our investments in equity securities and include significant net unrealized gains andlosses from market price changes. We believe that investment gains and losses on these investments, whether realized from dispositions
or unrealized from changes in market prices, are generally meaningless in understanding our reported periodic results or evaluating the
economic performance of our operating businesses. These gains and losses have caused and will continue to cause significant volatility
in our periodic earnings. Investment gains in the first six months of 2023 also included an after-tax non-cash remeasurement gain of
approximately $2.4 billion related to our previously held 38.6% interest in Pilot through the application of the acquisition accounting
method.
Other earnings included after-tax foreign currency exchange rate gains of $446 million in the second quarter and $1.0 billion in
the first six months of 2024 and $465 million in the second quarter and $448 million in the first six months of 2023 related to the nonU.S. Dollar denominated debt issued by Berkshire and Berkshire Hathaway Finance Corporation (“BHFC”). The gains reflected
strengthening of the U.S. Dollar.
Insurance—Underwriting
Our management views our insurance business as possessing two distinct activities – underwriting and investing. Underwriting
decisions are the responsibility of the unit managers, while investing decisions are the responsibility of Berkshire’s Chairman and CEO,
Warren E. Buffett and Berkshire’s corporate investment managers. Accordingly, we evaluate performance of underwriting operations
without any allocation of investment income or investment gains and losses. We consider investment income as an integral componentof our overall insurance operating results. However, we consider investment gains and losses, whether realized or unrealized, as nonoperating. We believe that such gains and losses are not meaningful in understanding the periodic operating results of our insurance
businesses.
The timing and magnitude of catastrophe losses can produce significant volatility in our periodic underwriting results, particularly
with respect to our property and casualty reinsurance businesses. We currently consider pre-tax incurred losses exceeding $150 million
from a current year catastrophic event to be significant. We experienced no significant catastrophe events during the first six months of2024, while significant events in 2023 derived from a cyclone and floods in New Zealand.
Changes in estimates for unpaid losses and loss adjustment expenses, including amounts established for occurrences in prior years,
can also significantly affect our periodic underwriting results. Our periodic underwriting earnings may also be impacted by foreign
currency transaction gains and losses arising from the changes in the valuation of non-U.S. Dollar denominated liabilities of our U.S.based subsidiaries due to foreign currency exchange rate fluctuations.
We provide primary insurance and reinsurance products covering property and casualty risks, as well as life and health risks. Our
insurance and reinsurance businesses are GEICO, Berkshire Hathaway Primary Group (“BH Primary”) and Berkshire Hathaway
Reinsurance Group (“BHRG”). We strive to produce pre-tax underwriting earnings (defined as premiums earned less insurance
losses/benefits incurred and underwriting expenses) over the long term in all business categories, except in our retroactive reinsurance
and periodic payment annuity businesses. Time-value-of-money is an important element in establishing prices for retroactive reinsurance
and periodic payment annuity policies. We normally receive premiums at the contract inception date, which are then available forinvestment. Ultimate claim payments can extend for decades and are expected to exceed premiums, producing underwriting losses overthe claim settlement periods through deferred charge asset amortization and liability discount accretion charges.
Underwriting results of our insurance businesses are summarized below (dollars in millions).
Second Quarter
2024
2023

Pre-tax underwriting earnings:
GEICO
Berkshire Hathaway Primary Group
Berkshire Hathaway Reinsurance Group
Pre-tax underwriting earnings
Income taxes
Net underwriting earnings
Effective income tax rate

$

$

30

1,786 $
279
782
2,847
584
2,263 $
20.5%

514 $
272
827
1,613
366
1,247 $
22.6%

First Six Months
2024
2023

3,714 $
765
1,694
6,173
1,312
4,861 $
21.3%

1,217
540
1,058
2,815
657
2,158
23.4%

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Insurance—Underwriting
GEICO
GEICO writes property and casualty policies, primarily private passenger automobile insurance, in all 50 states and the Districtof Columbia. GEICO markets its policies mainly by direct response methods where most customers apply for coverage directly to thecompany via the Internet or over the telephone. GEICO also operates an insurance agency that offers primarily homeowners and rentersinsurance to its auto policyholders. A summary of GEICO’s underwriting results follows (dollars in millions).
Second Quarter2024
AmountPremiums written
Premiums earned
Losses and loss adjustment expenses
Underwriting expenses
Total losses and expenses
Pre-tax underwriting earnings$10,458$10,469
7,755
928
8,683
$ 1,786

First Six Months
2023%

Amount

100.0
74.1
8.8
82.9

$ 9,449$ 9,714
8,192
1,008
9,200
$ 514

2024
%

Amount

100.0
84.3
10.4
94.7

$21,254$20,703
15,1691,820
16,989$ 3,7142023%

Amount

%

100.0
73.3
8.8
82.1

$19,509$19,340
16,184
1,939
18,123$ 1,217

100.0
83.7
10.0
93.7

GEICO’s pre-tax underwriting earnings in the first six months of 2024 reflected higher average premiums per auto policy, lower
claims frequencies and improved operating efficiencies compared to 2023, partially offset by a rise in average claims severities and lessfavorable development of prior accident years’ claims estimates.
Premiums written increased $1.0 billion (10.7%) in the second quarter and $1.7 billion (8.9%) in the first six months of 2024
compared to 2023, reflecting an increase in average written premiums per auto policy of 11.3%, primarily attributable to rate increases,
partially offset by a 4.3% decrease in policies-in-force over the past year. The rate of decline in policies-in-force slowed in the first halfof 2024, driven by increased new business and higher retention rates. Premiums earned increased $755 million (7.8%) in the second
quarter and $1.4 billion (7.0%) in the first six months of 2024 compared to 2023.
Losses and loss adjustment expenses declined $437 million (5.3%) in the second quarter and $1.0 billion (6.3%) in the first six
months of 2024 compared to 2023. GEICO’s loss ratio (losses and loss adjustment expenses to premiums earned) was 74.1% in thesecond quarter and 73.3% in the first six months of 2024, decreases of 10.2 percentage points and 10.4 percentage points, respectively,
compared to 2023. The loss ratio declines reflected the impact of higher average earned premium per auto policy and lower claims
frequencies, partially offset by increases in average claims severities and less favorable development of prior accident years’ claims
estimates.
Claims frequencies in 2024 declined for property damage (two to three percent range) and collision (six to seven percent range)
coverages versus 2023, with bodily injury coverage down slightly. Average claims severities in 2024 increased for property damage(eight to ten percent range), collision (six to eight percent range) and bodily injury (seven to nine percent range) coverages compared to2023. Losses and loss adjustment expenses in the first six months included reductions in the ultimate loss estimates for prior accident
years’ claims of $205 million in 2024 and $888 million in 2023.
Underwriting expenses declined $80 million (7.9%) in the second quarter and $119 million (6.1%) in the first six months of 2024
compared to 2023. GEICO’s expense ratio (underwriting expenses to premiums earned) in the first six months of 2024 was 8.8%, adecrease of 1.2 percentage points compared to 2023. The decline was attributable to improved operating efficiencies and increased
operating leverage, partially offset by increased advertising expenses. The earnings from GEICO’s insurance agency (third-party
commissions, net of operating expenses) are included as a reduction of underwriting expenses.
Berkshire Hathaway Primary Group
The Berkshire Hathaway Primary Group consists of several independently managed businesses that provide a variety of primarily
commercial insurance solutions, including healthcare professional liability, workers’ compensation, automobile, general liability,
property and specialty coverages for small, medium and large clients. BH Primary’s insurers include Berkshire Hathaway Specialty
Insurance (“BHSI”), RSUI Group Inc. and CapSpecialty, Inc. (“RSUI and CapSpecialty”), Berkshire Hathaway Homestate Companies(“BHHC”), MedPro Group, Berkshire Hathaway GUARD Insurance Companies (“GUARD”), National Indemnity Company (“NICO
Primary”), Berkshire Hathaway Direct Insurance Company (“BH Direct”) and U.S. Liability Insurance Company (“USLI”).

31

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Insurance—Underwriting
Berkshire Hathaway Primary GroupA summary of BH Primary’s underwriting results follows (dollars in millions).
Second Quarter2024
AmountPremiums written
Premiums earned
Losses and loss adjustment expenses
Underwriting expenses
Total losses and expenses
Pre-tax underwriting earnings$ 4,931$ 4,656
3,093
1,284
4,377
$ 279

First Six Months
2023%

Amount

100.0
66.4
27.6
94.0

$ 4,757$ 4,233
2,861
1,100
3,961
$ 272

2024
%

Amount

100.0
67.6
26.0
93.6

$ 9,424$ 9,197
5,905
2,527
8,432
$ 765

2023
%

Amount

%

100.0
64.2
27.5
91.7

$ 8,915$ 8,194
5,517
2,137
7,654
$ 540

100.0
67.3
26.1
93.4

Premiums written increased $174 million (3.7%) in the second quarter and $509 million (5.7%) in the first six months of 2024
compared to 2023, primarily due to comparative increases across several of the businesses, partially offset by lower volumes at GUARD.
Premiums earned increased 10.0% in the second quarter and 12.2% in the first six months of 2024 versus 2023.
Losses and loss adjustment expenses rose $232 million (8.1%) in the second quarter and $388 million (7.0%) in the first six
months of 2024 compared to 2023, reflecting the increases in earned premiums. The loss ratio decreased 1.2 percentage points in thesecond quarter and 3.1 percentage points in the first six months of 2024 compared to 2023, reflecting lower incurred losses fromsignificant catastrophes and changes in business mix. Incurred losses from significant catastrophes in the first six months of 2023 wereapproximately $40 million versus none in 2024. Additionally, reductions of liabilities for losses and loss adjustment expenses
attributable to prior accident years in the first six months of 2024 were $51 million greater than in 2023.
BH Primary insurers write significant levels of workers’ compensation, commercial and professional liability insurance and therelated claim costs may be subject to high severity and long claim-tails. Ultimate claim liabilities could be greater than anticipated due
to a variety of factors, including adverse legal and judicial rulings.
Underwriting expenses increased $184 million (16.7%) in the second quarter and $390 million (18.2%) in the first six months of2024 compared to 2023, reflecting the increases in premiums earned. The underwriting expense ratio increased 1.6 percentage points inthe second quarter and 1.4 percentage points in the first six months of 2024 compared to 2023.
Berkshire Hathaway Reinsurance Group
The Berkshire Hathaway Reinsurance Group offers excess-of-loss and quota-share reinsurance coverages on property and casualty
risks to insurers and reinsurers worldwide through several subsidiaries, led by National Indemnity Company (“NICO”), General
Reinsurance Corporation, General Reinsurance AG and Transatlantic Reinsurance Company. We also write life and health reinsurance
coverages through General Re Life Corporation, General Reinsurance AG and Berkshire Hathaway Life Insurance Company of
Nebraska (“BHLN”). We assume property and casualty risks under retroactive reinsurance contracts written through NICO and we write
periodic payment annuity contracts through BHLN.
A summary of BHRG’s premiums earned and pre-tax underwriting results follows (in millions).
Second Quarter
Pre-tax underwriting
Premiums earned
earnings (loss)
2024
2023
2024
2023

Property/casualty
Life/health
Retroactive reinsurance
Periodic payment annuity
Variable annuity$ 5,608
1,220———$ 6,828$ 5,325
1,289———$ 6,614First Six Months
Pre-tax underwriting
Premiums earned
earnings (loss)
2024
2023
2024
2023

$ 1,022 $ 1,124 $ 11,043
73
47
2,449
(161)
(263)
35
(163)
(211)
—
11
130
—
$ 782 $ 827 $ 13,527

32$ 10,474
2,349
—
—
—
$ 12,823$ 2,030 $ 1,514
181
184
(308)
(458)
(314)
(375)
105
193
$ 1,694 $ 1,058

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Insurance—Underwriting
Berkshire Hathaway Reinsurance Group
Property/casualty
A summary of property/casualty reinsurance underwriting results follows (dollars in millions).
Second Quarter2024
AmountPremiums written
Premiums earned
Losses and loss adjustment expenses
Underwriting expenses
Total losses and expenses
Pre-tax underwriting earnings$ 5,547$ 5,608
3,124
1,462
4,586
$ 1,022First Six Months
2023%

Amount

100.0
55.7
26.1
81.8

$ 5,866$ 5,325
2,793
1,408
4,201
$ 1,1242024%

Amount

100.0
52.5
26.4
78.9

$12,002$11,043
6,117
2,896
9,013
$ 2,030

2023%

Amount

%

100.0
55.4
26.2
81.6

$12,134$10,474
6,180
2,780
8,960
$ 1,514

100.0
59.0
26.5
85.5

Premiums written declined 5.4% in the second quarter and 1.1% in the first six months of 2024 compared to 2023, primarily due
to reductions of property volumes. We generally do not retrocede the risks we assume. Our periodic underwriting earnings may besubject to considerable volatility from the timing and magnitude of significant catastrophe loss events. Premiums earned increased 5.3%
in the second quarter and 5.4% in the first six months of 2024 compared to 2023.
Losses and loss adjustment expenses increased $331 million (11.9%) in the second quarter and decreased $63 million (1.0%) in
the first six months of 2024 versus 2023. The loss ratio increased 3.2 percentage points in the second quarter and declined 3.6 percentage
points in the first six months of 2024 compared to 2023. We experienced no significant catastrophe loss events in the first six monthsof 2024. Catastrophe losses were approximately $130 million in the second quarter and $530 million in the first six months of 2023.
Reductions in liabilities for losses and loss adjustment expenses attributable to prior accident years were $734 million in the first six
months of 2024 compared to $883 million in 2023.
Underwriting expenses increased $54 million (3.8%) in the second quarter and $116 million (4.2%) in the first six months of 2024
compared to 2023. Underwriting expenses included pre-tax foreign currency exchange gains from the remeasurement of certain nonU.S. Dollar denominated liabilities of $25 million in the second quarter and $51 million in the first six months of 2024 compared tolosses of $118 million in the second quarter and $192 million in the first six months of 2023. Before the foreign currency exchange
gains and losses, underwriting expenses increased $197 million in the second quarter and $359 million in the first six months of 2024
compared to 2023, primarily due to the increases in premiums earned and changes in property business mix.
Life/health
A summary of our life/health reinsurance underwriting results follows (dollars in millions).
Second Quarter2024
AmountPremiums written
Premiums earned
Life and health benefits
Underwriting expenses
Total benefits and expenses
Pre-tax underwriting earnings$ 1,226$ 1,220
842
305
1,147
$
73

First Six Months
2023%

Amount

100.0
69.0
25.0
94.0

$ 1,292$ 1,289
1,020
222
1,242
$
47

2024
%

Amount

100.0
79.1
17.3
96.4

$ 2,457$ 2,449
1,675
593
2,268
$ 181

2023
%

Amount

%

100.0
68.4
24.2
92.6

$ 2,353$ 2,349
1,698
467
2,165
$ 184

100.0
72.3
19.9
92.2

Premiums earned declined $69 million (5.4%) in the second quarter and increased $100 million (4.3%) in the first six months of2024 compared to 2023. The year-to-date increase was primarily due to the commutation of several U.S. life contracts in the first quarterof 2023, which reduced premiums earned by $161 million and life benefits and underwriting expenses by $302 million in 2023.
Premiums earned in each period of 2024 also reflected lower non-U.S. life business compared to 2023. Pre-tax underwriting earnings
increased $26 million in the second quarter and were relatively unchanged in the first six months of 2024 compared to 2023. Earnings
included gains from life contract commutations in the first six months of $50 million in 2024 and $137 million in 2023.

33

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Insurance—Underwriting
Berkshire Hathaway Reinsurance Group
Retroactive reinsurance
Pre-tax underwriting losses from retroactive reinsurance derive from deferred charge amortization, changes in the estimatedtiming and amounts of future claim payments and foreign currency exchange gains and losses attributable to non-U.S. Dollar
denominated contracts. Pre-tax underwriting losses before foreign currency effects were $135 million in the second quarter and $327
million in the first six months of 2024 compared to $245 million in the second quarter and $434 million in the first six months of 2023.
The declines in underwriting losses were primarily due to net reductions in estimated ultimate liabilities of $119 million in the second
quarter of 2024.
Unpaid losses assumed under retroactive reinsurance contracts were $33.5 billion at June 30, 2024, a decline of $1.2 billion since
December 31, 2023. Unamortized deferred charges on retroactive reinsurance contracts were $9.1 billion at June 30, 2024, a decline of$431 million since December 31, 2023. Deferred charge amortization is included in underwriting earnings over the expected remaining
claims settlement periods.
Periodic payment annuity
Periodic payment annuity business is price and demand-sensitive and the supply of available business is affected by the timing ofunderlying legal claim settlements. In 2023 and through the first six months of 2024, prices for new business were at unacceptable levels
and we wrote no new business in either period.
Pre-tax underwriting losses from periodic payment annuity contracts in each period were attributable to the accretion of timevalue discounted liabilities, which included liabilities for contracts without life contingencies, and to foreign currency exchange gains
and losses on non-U.S. Dollar denominated contracts. Pre-tax underwriting losses before foreign currency exchange effects in the firstsix months were $299 million in 2024 and $292 million in 2023. Discounted periodic payment annuity liabilities were $14.4 billion atJune 30, 2024 and included liabilities of $4.0 billion for contracts without life contingencies, as well as the effects of the quarterly
discount rate changes on contracts with life-contingent liabilities recorded in accumulated other comprehensive income.
Variable annuity
The runoff of our variable annuity guarantee reinsurance contracts produced pre-tax earnings of $11 million in the second quarter
and $105 million in the first six months of 2024 and $130 million in the second quarter and $193 million in the first six months of 2023.
Earnings are affected by changes in securities markets, interest rates and foreign currency exchange rates. These contracts have been in
run-off for many years.
Insurance—Investment Income
A summary of net investment income attributable to our insurance operations follows (dollars in millions).
Second Quarter
2024

Dividend income
Interest and other investment income
Pre-tax net investment income
Income taxes and noncontrolling interests
Net investment income
Effective income tax rate$$

First Six Months

2023

1,469 $
2,599
4,068
748
3,320 $
18.4%

34

1,522 $
1,390
2,912
543
2,369 $
18.6%

2024

2,690 $
4,530
7,220
1,302
5,918 $
18.0%

2023

2,766
2,531
5,297
959
4,338
18.1%

Percentage Change
First
SecondSix
QuarterMonths(3.5)%
87.0
39.7(2.7)%
79.0
36.3

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Insurance—Investment Income
Dividend income declined $53 million (3.5%) in the second quarter and $76 million (2.7%) in the first six months of 2024
compared to 2023. The reductions reflected the impact of changes in our equity security holdings, partially offset by higher dividend
rates on certain of our holdings. Dividend income also varies from period to period due to the frequency and timing of dividends fromcertain investees.
Interest and other investment income increased $1.2 billion (87.0%) in the second quarter and $2.0 billion (79.0%) in the first six
months of 2024 over 2023. The increases were attributable to an increase in short-term investments in U.S. Treasury Bills and higher
interest rates. We continue to believe that maintaining ample liquidity is paramount and we insist on safety over yield with respect toshort-term investments.
Invested assets of our insurance businesses derive from shareholder capital and net liabilities assumed under insurance andreinsurance contracts or “float.” The major components of float are unpaid losses and loss adjustment expenses, liabilities underretroactive reinsurance contracts, life, annuity and health benefit liabilities, unearned premiums and other liabilities due to policyholders,which are reduced by insurance premiums receivable, reinsurance receivables, deferred charges on retroactive reinsurance contracts anddeferred policy acquisition costs. The effects of discount rate changes recorded in accumulated other comprehensive income for longduration insurance contracts are excluded from float, as such amounts are not included in underwriting earnings. Float was approximately$169 billion at June 30, 2024 and December 31, 2023.
A summary of cash and investments held in our insurance businesses as of June 30, 2024 and December 31, 2023 follows (inmillions).
June 30,
2024

Cash, cash equivalents and U.S. Treasury Bills
Equity securities
Fixed maturity securities
Other

$

$

December 31,
2023

224,239
276,139
16,643
1,047
518,068$$

121,845
345,653
23,6171,188
492,303

Fixed maturity securities as of June 30, 2024 were as follows (in millions).
Amortized
Cost

U.S. Treasury, U.S. government corporations and agencies
Foreign governments
Corporate and other

$
$

4,670
10,414
1,361
16,445

Unrealized
Gains (Losses)

$
$

(10)
(11)
219
198

Carrying
Value

$
$

4,660
10,403
1,580
16,643

U.S. government obligations are rated AA+ or Aaa by the major rating agencies. Approximately 95% of our foreign government
obligations were rated AA or higher by at least one of the major rating agencies. Foreign government securities include obligations
issued or unconditionally guaranteed by national or provincial government entities.

35

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
BNSF
Burlington Northern Santa Fe, LLC (“BNSF”) operates one of the largest railroad systems in North America, with over 32,500
route miles of track in 28 states. BNSF also operates in three Canadian provinces. BNSF classifies its major business groups by type of
product shipped including consumer products, industrial products, agricultural products and coal. A summary of BNSF’s earnings
follows (dollars in millions).
Second Quarter
2024

Railroad operating revenues
Railroad operating expenses:
Compensation and benefits
Fuel
Purchased services
Depreciation and amortization
Equipment rents, materials and other
Total
Railroad operating earnings
Interest expense
Other revenues (expenses), net
Pre-tax earnings
Income taxes
Net earnings
Effective income tax rate

$

5,717
1,318
822
494
665
598
3,897
1,820
(267)
69
1,622
395
1,227
24.4%

$

First Six Months
2023

$

$

2024

5,704

$

1,378
833
489
650
540
3,890
1,814
(256)
57
1,615
351
1,264
21.7%

2023

11,361
2,725
1,676
986
1,325
1,106
7,818
3,543
(532)
130
3,141
771
2,370
24.5%

$

$

$

11,592
2,691
1,797
1,000
1,295
1,133
7,916
3,676
(513)
101
3,264
753
2,511
23.1%

A summary of BNSF’s railroad freight volumes by business group (cars/units in thousands) follows.
Cars/Units
Second Quarter
2024

Consumer products
Industrial products
Agricultural products
Coal

2023

1,330
401
308
256
2,295

Percentage Change
SecondFirst Six
QuarterMonthsFirst Six Months
2024

1,157
407
278
360
2,202

2023

2,602
789
619
549
4,559

2,223
796
578
729
4,326

15.0%
(1.5)
10.8
(28.9)
4.2

17.0%
(0.9)
7.1
(24.7)
5.4

Railroad operating revenues were relatively unchanged in the second quarter and decreased 2.0% in the first six months of 2024
compared to 2023. Average revenue per car/unit declined 3.7% in the second quarter and 6.8% in the first six months of 2024 compared
to 2023, resulting from lower fuel surcharge revenue and business mix changes. Car/unit volumes increased 4.2% in the second quarterand 5.4% in the first six months of 2024 compared to 2023. Pre-tax earnings increased 0.4% in the second quarter and decreased 3.8%
in the first six months of 2024 compared to 2023. Operating earnings in the second quarter and first six months of 2024 were negatively
affected by litigation accruals and otherwise benefited from improved productivity and lower operating costs.
Operating revenues from consumer products were $2.1 billion in the second quarter and $4.1 billion in the first six months of2024, increases of 12.0% and 8.8%, respectively, from 2023. The revenue increases were attributable to higher volumes of 15.0% in thesecond quarter and 17.0% in the first six months of 2024 compared to 2023, partially offset by lower average revenue per car/unit. The
volume increases were primarily due to higher intermodal shipments from West Coast imports and volumes from a new intermodal
customer.
Operating revenues from industrial products were $1.4 billion in the second quarter and $2.8 billion in the first six months of2024, decreases of 0.4% and 0.9%, respectively, from 2023. The second quarter revenue decline was attributable to reduced volumes of
1.5%, partially offset by higher average revenue per car/unit. The revenue decline in the first six months was primarily due to slightly
lower revenue per car/unit and a 0.9% reduction in volumes. The volume declines in each period were primarily due to lower aggregates,taconite, minerals and waste shipments, partially offset by higher volumes in petroleum products and plastics.
Operating revenues from agricultural products were $1.4 billion in the second quarter and $2.9 billion in the first six months of2024, increases of 10.1% and 3.1%, respectively, compared to 2023. The revenue increases were attributable to higher volumes of 10.8%
in the second quarter and 7.1% in the first six months of 2024 compared to 2023, partially offset by lower average revenue per car/unit.
The volume increases were primarily due to higher grain exports, renewable fuels and fertilizer shipments, partially offset by lower
domestic grain volumes.

36

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
BNSF
Operating revenues from coal were $608 million in the second quarter and $1.4 billion in the first six months of 2024, declines of
35.0% and 30.1%, respectively, from 2023. The revenue declines were attributable to reduced volumes of 28.9% in the second quarterand 24.7% in the first six months of 2024 compared to 2023 and lower average revenue per car/unit. The volume decreases wereprimarily attributable to lower natural gas prices, which displaces coal as a fuel used by utilities.
Railroad operating expenses were $3.9 billion in the second quarter and $7.8 billion in the first six months of 2024, a slightincrease (0.2%) and a decrease of $98 million (1.2%), respectively, compared to 2023. Compensation and benefits expenses decreased$60 million (4.4%) in the second quarter and increased $34 million (1.3%) in the first six months of 2024 compared to 2023. The
decrease in the second quarter was primarily due to increased employee productivity, partially offset by wage inflation. The increase in
the first six months of 2024 was primarily due to the increases in volumes and wage inflation, partially offset by increased employee
productivity. Fuel expenses declined $11 million (1.3%) in the second quarter and $121 million (6.7%) in the first six months of 2024
compared to 2023, reflecting lower average fuel prices, partially offset by higher volumes. Equipment rents, materials and other expenses
increased $58 million (10.7%) in the second quarter and decreased $27 million (2.4%) in the first six months of 2024 compared to 2023.
Other expenses in the second quarter and first six months of 2024 included litigation costs related to the recent judgment in the ongoinglegal case with the Swinomish Tribe, which BNSF has appealed. Otherwise, equipment rents, materials and other expenses in the 2024
periods declined compared to 2023, primarily due to cost reductions across various spend categories and lower property taxes.
BHE
We currently own 92% of Berkshire Hathaway Energy Company (“BHE”), which operates a global energy business. BHE’s
domestic regulated utility interests include PacifiCorp, MidAmerican Energy Company (“MEC”) and NV Energy. BHE’s natural gas
pipelines consist of five domestic regulated interstate natural gas pipeline systems and a 75% interest in a liquefied natural gas export,
import and storage facility. Other energy businesses include subsidiaries that operate two regulated electricity distribution businesses inGreat Britain (“Northern Powergrid”), a regulated electricity transmission-only business in Alberta, Canada, a diversified portfolio of
mostly renewable independent power projects and investments and an unregulated retail energy services company. BHE also operates
a residential real estate brokerage business and a large network of real estate brokerage franchises in the United States.
The rates our regulated businesses charge customers for energy and services are largely based on the costs of business operations,
including income taxes and a return on capital, and are subject to regulatory approval. To the extent such costs are not allowed in theapproved rates, operating results will be adversely affected. A summary of BHE’s net earnings follows (dollars in millions).
Second Quarter
2024
2023

Revenues:
Energy operating revenue
Real estate operating revenue
Other income
Total revenue
Costs and expenses:
Energy cost of sales
Energy operating expenses
Real estate operating costs and expenses
Interest expense
Total costs and expenses
Pre-tax earnings
Income tax benefit*
Net earnings after income taxes
Noncontrolling interests of BHE subsidiaries
Net earnings attributable to BHE
Noncontrolling interests and preferred stock dividends
Net earnings attributable to Berkshire Hathaway shareholders
Effective income tax rate

$

$

5,115
1,289
88
6,492

$

1,527
2,774
1,240
625
6,166
326
(434)
760
39
721
66
655
$
(133.1)%

4,933
1,296
133
6,362

Includes significant production tax credits from wind-powered electricity generation.

37

$

1,566
2,357
1,250
565
5,738
624
(379)
1,003
130
873
88
785
$
(60.7)%——————*First Six Months
2024
2023

10,3602,155
254
12,769

$

3,197
5,218
2,326
1,270
12,011
758
(827)
1,585
75
1,510
138
1,372
$
(109.1)%

10,404
2,171
238
12,813
3,521
5,147
2,170
1,128
11,966
847
(742)
1,589
244
1,345
144
1,201
(87.6)%

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
BHE
The discussion of BHE’s operating results that follows is based on after-tax earnings, reflecting how the energy businesses aremanaged and evaluated. A summary of net earnings attributable to BHE (“net earnings”) follows (dollars in millions).
Second Quarter
2024

U.S. utilities
Natural gas pipelines
Other energy businesses
Real estate brokerage
Corporate interest and other$$First Six Months

2023

267
234
379
43
(202)
721

$

$

2024

430
187
389
34
(167)
873

$

$

643
733
661
(116)
(411)
1,510

Percentage Change
SecondFirst Six
QuarterMonths

2023

$

593
556
572
—

$

(376)
1,345

(37.9)%
25.1
(2.6)
26.5
21.0
(17.4)

8.4%
31.8
15.6
—

9.3
12.3

Our U.S. utilities operate independently in several states, including Oregon, Utah, Wyoming and other Western states(PacifiCorp), Iowa and Illinois (MEC) and Nevada (NV Energy). Net earnings declined $163 million in the second quarter and increased$50 million in the first six months of 2024 compared to 2023. Pre-tax loss accruals, net of expected insurance recoveries, for the Wildfires
were $251 million in the second quarter and first six months of 2024 and $408 million in the first six months of 2023, recorded primarily
in the first quarter. See Note 23 to the accompanying Consolidated Financial Statements for additional information on the Wildfires.
In addition, net earnings of U.S. utilities in the second quarter and first six months of 2024 reflected comparative increases inother income, electric utility margin (operating revenue less cost of sales) and income tax benefits from higher recognized windproduction tax credits, partially offset by higher interest expense and increases in other energy operating expenses. Interest expense
increased $84 million in the second quarter and $186 million in the first six months of 2024 over 2023, largely due to increased
borrowings, including $4.4 billion of subsidiary term debt issued in January 2024 with a weighted average interest rate of 5.5%. The
increases in other energy operating expenses were primarily due to higher vegetation management and other wildfire mitigation costs,
legal and insurance expenses and general and plant maintenance costs.
The U.S. utilities’ electric utility margin was $1.9 billion in the second quarter and $3.6 billion in the first six months of 2024,
increases of $79 million (4.4%) and $102 million (2.9%) compared to 2023. The increases reflected higher retail customer rates incertain territories and higher retail customer volumes, partially offset by higher energy costs and lower wholesale volumes and rates.
Retail customer volumes increased 3.2% overall (up 5.4% at NV Energy, 3.3% at PacifiCorp and 0.7% at MEC) in the first six monthsof 2024 compared to the same period in 2023, primarily due to increases in customer usage and in the average number of customers,
partially offset by an overall unfavorable impact of weather.
Net earnings of natural gas pipelines increased $47 million in the second quarter and $177 million in the first six months of 2024
compared to 2023. The increases in earnings reflected reductions in earnings attributable to noncontrolling interests due to the acquisitionof an additional 50% ownership interest in the Cove Point facility on September 1, 2023, as well as increased margin on gas sales andhigher transportation revenue.
Net earnings of other energy businesses declined $10 million in the second quarter and increased $89 million in the first six
months of 2024 compared to 2023. The increase in earnings for the first six months of 2024 reflected higher earnings at Northern
Powergrid and the non-regulated retail services business, partially offset by lower earnings at the renewable energy business. The
increase at Northern Powergrid was attributable to higher distribution revenue due to higher tariffs from inflation adjustments and lower
income tax expense attributable to expenses recognized in 2023 for the U.K. Energy Profits Levy and a group relief tax claim benefit
recognized in 2024, partially offset by unfavorable results at the natural gas exploration business and higher other operating expenses.
Earnings from the renewable energy business decreased in the first six months of 2024 versus 2023, mainly due to lower earnings fromwind tax equity investments in 2024 and debt extinguishment gains recognized in 2023.
Net earnings of real estate brokerage increased $9 million in the second quarter and declined $116 million in the first six monthsof 2024 compared to 2023. The decline for the first six months of 2024 was primarily attributable to expense accruals by HomeServices
in connection with the ongoing real estate industry litigation matters. In April 2024, HomeServices agreed to terms with the plaintiffs
to settle all claims asserted against HomeServices and certain of its affiliates as part of a proposed nationwide class settlement. See Note
23 to the accompanying Consolidated Financial Statements for additional information.
Net losses from corporate interest and other increased $35 million in the second quarter and first six months of 2024 compared to2023, mainly due to lower other income and higher technology and administrative costs.

38

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Pilot Travel Centers, LLC (“Pilot”)
Pilot operates travel centers, primarily under the names Pilot or Flying J, and fuel-only retail locations. Pilot also operates large
wholesale fuel and fuel marketing platforms in the U.S. A substantial portion of Pilot’s revenues and earnings derive from marketing
fuel on a wholesale and retail basis and from other energy-related activities.
Through January 31, 2023, we owned a 38.6% interest in Pilot, which we accounted for under the equity method. Our 38.6%
proportionate share of Pilot’s net earnings for the month ending January 31, 2023 are included in equity method earnings in theaccompanying Consolidated Statements of Earnings.
On January 31, 2023, we acquired an additional 41.4% interest in Pilot and owned an 80% controlling financial interest as of that
date. Thus, we began consolidating Pilot’s results of operations in our Consolidated Statements of Earnings on February 1, 2023. On
January 16, 2024, we acquired the remaining 20% noncontrolling interest and we now own 100% of Pilot.
Pilot’s earnings for the second quarter and the first six months ending June 30, 2024 and 2023, as well as the five months ending
June 30, 2023, are summarized below (dollars in millions). Revenues, costs and expenses for the first month of 2023 were not included
in our Consolidated Financial Statements.
Second Quarter
2024
2023

Revenues
Cost of sales
Operating expenses
Interest expense
Pre-tax earnings
Income taxes and noncontrolling interests
Net earnings attributable to Berkshire Hathaway shareholders$ 12,999
11,893
824
83
199
28
$
171

$ 14,754
13,600
855
113
186
72
$
114

First Six
Months2024$ 25,502
23,450
1,606
177
269
31
$
238

Five Months
EndingJune 30,
2023

$

$

24,262
22,405
1,351
184
322
125
197

First Six
Months2023$$

29,282
27,099
1,564
208
411

Revenues declined $1.8 billion (11.9%) in the second quarter and $3.8 billion (12.9%) in the first six months of 2024 comparedto the same periods in 2023. The declines were attributable to lower average fuel prices and a decline in volumes from wholesale fueland fuel marketing businesses. Pre-tax earnings increased 7.0% in the second quarter and declined 34.5% in the first six months of 2024
compared to the same periods in 2023. Pilot’s gross margin declined 2.2% in the second quarter of 2024 compared to 2023, which wasmore than offset by lower operating and interest expenses. The gross margin declined 4.1% in the first six months of 2024 compared to2023 and operating expenses increased 2.7%, including higher store expenses and depreciation and amortization expenses, partially
offset by lower interest expense. The year-to-date increase in store expenses was primarily attributable to increases in labor, marketingand maintenance costs. In March 2024, Pilot borrowed $5.7 billion from certain Berkshire insurance subsidiaries and repaid its third
party borrowings. The interest on the intercompany borrowings is included in interest expense in the earnings summary above and ininsurance investment income on page 34.

39

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Manufacturing, Service and Retailing
A summary of revenues and earnings of our manufacturing, service and retailing businesses follows (dollars in millions).
Second Quarter
2024

Revenues
Manufacturing
Service and retailing$$

Pre-tax earnings
Manufacturing
Service and retailing$

Income taxes and noncontrolling interests
Net earnings*$
Effective income tax rate
Pre-tax earnings as a percentage of revenues

First Six Months

2023

2024

19,840 $22,40542,245 $19,102
23,024
42,1263,129 $
1,111
4,240
1,031
3,209 $
23.7%
10.0%

$

Percentage Change
SecondFirst Six
QuarterMonths2023

37,39146,014
83,405

3.9%
(2.7)

2.6%
(3.1)

$

38,369 $44,583
82,952 $

3,103
$
1,391
4,494
1,105
3,389
$
23.9%
10.7%

6,043 $
2,184
8,227
1,997
6,230 $
23.6%
9.9%

5,714
2,725
8,439
2,068
6,371
23.8%
10.1%

0.8%
(20.1)

5.8%(19.9)——————*

Excludes certain acquisition accounting expenses, which primarily related to the amortization of identifiable intangible assets
recorded in connection with certain of our business acquisitions. The after-tax acquisition accounting expenses excluded from
earnings were $137 million in the second quarter and $262 million in the first six months of 2024 and $174 million in the second
quarter and $352 million in the first six months of 2023. These expenses are included in “Other” in the summary of earnings on
page 29 and in the “Other” earnings section on page 45.
Manufacturing

Our manufacturing group consists of a variety of industrial, building and consumer products businesses. A summary of revenues
and pre-tax earnings of these operations follows (dollars in millions).
Second Quarter
2024
2023

Revenues
Industrial products
Building products
Consumer products$$

Pre-tax earnings
Industrial products
Building products
Consumer products$$

Pre-tax earnings as a percentage of revenues
Industrial products
Building products
Consumer products

9,273
6,897
3,670
19,840

$

1,664
1,083
382
3,129

$

17.9%
15.7
10.4

$

$

First Six Months
2024
2023

8,876
6,693
3,533
19,102

$

1,520
1,227
356
3,103

$

17.1%
18.3
10.1

$

$

18,156
12,986
7,227
38,369

$

3,221
2,085
737
6,043

$

17.7%
16.1
10.2

$

$

17,73912,703
6,949
37,391
2,961
2,122
631
5,714
16.7%
16.7
9.1

Industrial products
The industrial products group includes metal products for aerospace, power and general industrial markets (Precision Castparts
Corp. (“PCC”)), specialty chemicals (The Lubrizol Corporation (“Lubrizol”)), metal cutting tools/systems (IMC International
Metalworking Companies (“IMC”)) and Marmon, which consists of more than 100 autonomous manufacturing and service businesses,
internally aggregated into twelve groups. The industrial products group also includes equipment and systems for the livestock andagricultural industries (CTB International), pipeline flow improvement technology and products (LiquidPower Specialty Products) anda structural steel fabrication products business (W&W|AFCO Steel).

40

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Manufacturing, Service and Retailing
Revenues of the industrial products group increased $397 million (4.5%) in the second quarter and $417 million (2.4%) in thefirst six months of 2024 compared to 2023. Pre-tax earnings increased $144 million (9.5%) in the second quarter and $260 million(8.8%) in the first six months of 2024 compared to 2023. Pre-tax earnings as a percentage of revenues for the first six months of 2024
increased 1.0 percentage points compared to the first six months of 2023.
PCC’s revenues were $2.7 billion in the second quarter and $5.2 billion in the first six months of 2024, increases of 15.0% and12.6%, respectively, compared to 2023. The revenue increases were primarily attributable to higher demand for aerospace products, andto a lesser degree, power generation products. Long-term industry forecasts continue to show growth and strong demand for air travel
and aerospace products. PCC’s pre-tax earnings increased 27.5% in the second quarter and 22.4% in the first six months of 2024
compared to 2023. The earnings increases were primarily attributable to sales increases and improving manufacturing and operating
efficiencies. Continued growth in revenues and earnings will be predicated on the ability to successfully increase production levels tomatch the expected growth in aerospace product demand.
Lubrizol’s revenues were $1.7 billion in the second quarter of 2024, an increase of 4.4% over 2023, attributable to higher volumes,
partially offset by lower selling prices and unfavorable product mix. Revenues in the first six months of 2024 decreased 0.7% to $3.3
billion compared to 2023, as lower selling prices and unfavorable product mix were partially offset by higher volumes. Sales volumes
in the second quarter and first six months of 2024 increased 11% and 6%, respectively, compared to 2023, attributable to stronger
demand and customer inventory restocking following the customer destocking in 2023. Lubrizol’s pre-tax earnings increased 53.2% in
the second quarter and 48.8% in the first six months of 2024 due to lower raw material costs, higher volumes and lower operating
expenses, partially offset by the impact of lower selling prices and unfavorable product mix.
Marmon’s revenues were $3.2 billion in the second quarter and $6.2 billion in the first six months of 2024, decreases of 1.5% and3.5%, respectively, compared to 2023. The Transportation Products group experienced significant revenue declines due to reduced
volumes, following very strong demand in recent years. The Metal Services and Retail Solutions groups also experienced lower revenues
due to reduced customer demand. Conversely, higher copper prices and increased volumes increased revenues for the Electrical group,and the Rail & Leasing group generated higher revenues due to higher average lease renewal rates and increased railcar repair prices
and volumes.
Marmon’s pre-tax earnings decreased 8.8% in the second quarter and 7.8% in the first six months of 2024 compared to 2023. The
declines reflected lower earnings from the Transportation Products, Metals Services and Retail Solutions groups due to the revenue
declines, lower earnings from the Crane Services group and lower financial and other income, partially offset by higher earnings in theRail & Leasing and Water Technologies groups.
IMC’s revenues were $1.0 billion in the second quarter and $2.0 billion in the first six months of 2024, decreases of 2.8% and1.2%, respectively, compared to 2023. Revenues in the first six months of 2024 reflected lower organic sales and unfavorable foreign
currency translation from a stronger U.S. Dollar, partially offset by business acquisitions and higher interest income. IMC’s pre-tax
earnings declined 8.7% in the second quarter and 6.3% in the first six months of 2024 compared to 2023, reflecting lower gross margins
and higher selling and marketing expenses, partially offset by higher interest and other income. IMC operates globally and a large
portion of its products are manufactured in Israel. IMC’s operations in Israel have not been significantly impacted to-date by the conflicts
in the region.
Building products
The building products group includes manufactured and site-built home construction and related lending and financial services(Clayton Homes), flooring (Shaw), insulation, roofing and engineered products (Johns Manville), bricks and masonry products (Acme
Brick Company), paint and coatings (Benjamin Moore) and residential and commercial construction and engineering products andsystems (MiTek).
Revenues of the building products group increased $204 million (3.0%) in the second quarter and $283 million (2.2%) in the firstsix months of 2024 compared to 2023. Pre-tax earnings decreased $144 million (11.7%) in the second quarter and $37 million (1.7%)
in the first six months of 2024 compared to 2023.

41

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Manufacturing, Service and Retailing
Clayton Homes’ revenues increased 8.7% to $3.1 billion in the second quarter and 8.9% to $5.9 billion in the first six months of2024 compared to 2023. Revenues from home sales increased $293 million (7.1%) in the first six months of 2024, reflecting higher new
home unit sales of 11.5%, partially offset by lower average selling prices. Also, financial services revenues increased 14.6% in the firstsix months of 2024 compared to 2023, primarily due to increased interest income from higher average loan balances and a slight increasein average interest rates. Loan balances, net of allowances for credit losses, were approximately $25.4 billion as of June 30, 2024, anincrease of 12.9% since June 30, 2023. Clayton Homes funds a portion of its loan portfolio balances with borrowings from Berkshire
finance subsidiaries.
Clayton Homes’ pre-tax earnings declined $55 million (10.0%) in the second quarter and $10 million (1.0%) in the first six monthsof 2024 compared to 2023, primarily attributable to lower earnings from manufacturing in each period, partially offset by increased
earnings from financial services in the first six months. The declines in earnings from manufacturing reflected lower gross margin rates
due to the increased cost of building Zero Energy Ready homes (such incremental costs are partially offset by income tax credits) andhigher operating expenses. The increase in financial services earnings was primarily attributable to increased net interest income,partially offset by increased expected loan loss provisions and insurance claims. Interest expense on borrowings from Berkshire affiliates
is reflected in Clayton Homes’ earnings, and the corresponding interest income is included in other earnings on page 45. In the third
quarter of 2024, borrowings from Berkshire affiliates were increased to better match the current installment loan balances. Earnings
from financial services will be reduced in the future by the incremental interest expense from such borrowings.
Our other building products businesses generated revenues of approximately $3.8 billion in the second quarter and $7.1 billion in
the first six months of 2024, decreases of $46 million (1.2%) in the second quarter and $195 million (2.7%) in the first six months of2024 versus 2023. Sales volumes in the 2024 periods increased at Johns Manville and declined at our other businesses in the group,
while average selling prices were lower at Johns Manville and slightly higher at our other businesses.
Pre-tax earnings of our other building products businesses declined $88 million (13.1%) in the second quarter and $28 million(2.4%) in the first six months of 2024 compared to 2023. Earnings as a percentage of revenues in the first six months of 2024 were
15.9%, essentially unchanged compared to 2023. Earnings in 2024 were negatively impacted by increased restructuring and legal costs,
which were partially offset by higher average gross margin rates from lower input costs and improved manufacturing efficiencies.
Consumer products
The consumer products group includes recreational vehicles (Forest River), several apparel and footwear operations (Fruit of theLoom, Garan, Fechheimer, H.H. Brown Shoe Group and Brooks Sports), high-performance batteries (Duracell) and a global toy
company (Jazwares). This group also includes custom picture framing products (Larson-Juhl) and jewelry products (Richline).
Consumer products group revenues increased $137 million (3.9%) in the second quarter and $278 million (4.0%) in the first six
months of 2024 compared to 2023. The increases were primarily attributable to higher revenues from Forest River, Jazwares and Brooks
Sports, partially offset by lower revenues from Fruit of the Loom and Richline. Forest River revenues increased 7.8% in the first six
months of 2024, reflecting a 9.4% increase in unit sales, which included the impact of business acquisitions over the past year. Average
selling prices for recreational vehicles declined in 2024 and increased for bus and commercial vehicles, attributable to changes in productmix and price competition. Jazwares and Brooks Sports revenues increased 20.3% and 12.3%, respectively, in the first six months of2024 over 2023, primarily attributable to higher volumes.
Consumer products group pre-tax earnings increased $26 million (7.3%) in the second quarter and $106 million (16.8%) in thefirst six months of 2024 versus 2023. Earnings from Forest River declined 3.6% in the second quarter and increased 6.1% in the firstsix months of 2024 compared to 2023. Forest River’s earnings in the second quarter of 2024 were negatively affected by lower grossmargin rates, primarily attributable to changes in sales mix and higher materials and chassis costs. Apparel and footwear earnings
increased 40.8% in the first six months of 2024 from 2023, primarily due to Brooks Sports, the impact of lower product and supply
chain costs and the effects of restructuring activities at certain of our apparel businesses in 2023. Apparel business earnings were
negatively impacted in 2023 by low sales volumes and rising raw materials, freight, labor and other operating costs.

42

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Manufacturing, Service and Retailing
Service and retailing
A summary of revenues and pre-tax earnings of our service and retailing businesses follows (dollars in millions).
Second Quarter
2024

Revenues
Service
Retailing
McLane$$Pre-tax earnings
Service
Retailing
McLane$$Pre-tax earnings as a percentage of revenues
Service
Retailing
McLaneFirst Six Months
2023

2024

5,211 $
4,736
12,45822,405 $

5,181
4,960
12,88323,024

$

633 $
336
142
1,111 $

824
438
129
1,391

$

12.1%
7.1
1.1

15.9%
8.8
1.0

$

$

2023

10,362 $9,288
24,93344,583 $10,5009,572
25,94246,014

1,224 $
653
307
2,184 $

1,661
822
242
2,725

11.8%
7.0
1.2

15.8%
8.6
0.9

ServiceOur service group consists of several businesses, the largest of which are NetJets and FlightSafety (aviation services), which offer
shared ownership programs for general aviation aircraft and high technology training services and products to operators of aircraft, TTI,a distributor of electronics components and IPS, a provider of facilities construction management services. Our other service businesses
franchise and service a network of quick service restaurants (Dairy Queen), lease transportation equipment (XTRA) and furniture(CORT), provide third party logistics services that primarily serve the petroleum and chemical industries (Charter Brokerage), distributeelectronic news, multimedia and regulatory filings (Business Wire) and operate a television station in Miami, Florida (WPLG).
Service group revenues increased $30 million (0.6%) in the second quarter and declined $138 million (1.3%) in the first six
months of 2024 compared to 2023. The decline in the first six months of 2024 was primarily attributable to lower revenues from TTI
and the leasing businesses, partially offset by higher revenues from the aviation services businesses and IPS. TTI revenues declined
10.6% in the second quarter and 13.1% in the first six months of 2024 compared to 2023. Sales at TTI declined in the first six monthsof 2024 across most regions, markets and product lines, attributable to excess inventory levels within supply chains, which contributed
to lower customer demand. These conditions are generally expected to continue over the remainder of 2024. Revenues from aviation
services increased 10.4% in the second quarter and 9.5% in the first six months of 2024 versus 2023, primarily due to increases in thenumber of aircraft in shared aircraft ownership programs and an increase in flight hours across NetJets’ various programs, higher training
hours at FlightSafety, as well as higher average rates. Additionally, IPS revenues increased 14.5% in the second quarter and 13.1% in
the first six months of 2024 compared to 2023.
Service group pre-tax earnings declined $191 million (23.2%) in the second quarter and $437 million (26.3%) in the first six
months of 2024 compared to 2023. Pre-tax earnings as a percentage of revenues fell 4.0 percentage points in the first six months of 2024
compared to 2023. Earnings from TTI declined 50.8% in the second quarter and 50.0% in the first six months of 2024 compared to2023. The earnings declines reflected the impact of lower sales and price competition, which contributed to reduced gross margin rates,
as well as higher operating expenses. Earnings from aviation services declined 8.0% in the second quarter and 9.1% in the first six
months of 2024 versus 2023, primarily attributable to increased maintenance, personnel and fuel costs, as well as higher depreciation
expense.

43

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Manufacturing, Service and Retailing
Retailing
Our largest retailing business is Berkshire Hathaway Automotive, Inc. (“BHA”), representing 69% of our combined retailingrevenues in the first six months of 2024. BHA consists of over 80 auto dealerships that sell new and pre-owned automobiles and offer
repair services and related products. BHA also offers vehicle service contracts and operates two insurance businesses. Our retailingbusinesses also include four home furnishings retailing businesses (Nebraska Furniture Mart, R.C. Willey, Star Furniture and Jordan’s),which sell furniture, appliances, flooring and electronics. The home furnishings group represented 17% of the combined retailing grouprevenues in the first six months of 2024.
Other retailing businesses include three jewelry retailers (Borsheims, Helzberg and Ben Bridge). Other businesses also offer
confectionery products (See’s Candy), high-quality kitchen tools (Pampered Chef), party supplies, school supplies and toys and novelties(Oriental Trading Company) and motorcycle accessories (Louis).
Retailing group revenues declined 4.5% in the second quarter to $4.7 billion and 3.0% to $9.3 billion in the first six months of2024 compared to 2023. BHA vehicle sales revenues decreased 1.7% in the first six months of 2024 versus 2023, reflecting lower preowned and wholesale sales, partially offset by higher new vehicle sales. New vehicle unit sales in the first six months of 2024 increased
8.4%, which was partially offset by lower average selling prices compared to 2023. The declines in new vehicle selling prices were
attributable to increased price competition and product mix changes. Revenues from BHA’s parts/service/repair operations declined
slightly in the first six months of 2024 versus 2023. Home furnishing revenues in the first six months of 2024 declined 8.5% versus
2023, primarily attributable to lower customer traffic and sales volumes and increasing price competition. Also, aggregate revenues ofour other retailers declined 6.8% in the first six months of 2024 compared to 2023.
Retailing group pre-tax earnings declined $102 million (23.3%) in the second quarter and $169 million (20.6%) in the first six
months of 2024 compared to 2023. BHA’s pre-tax earnings declined 8.2% in the second quarter and 9.8% in the first six months of 2024
compared to 2023, primarily due to lower vehicle gross profit margins, partially offset by higher investment income from finance/service
contract operations and lower operating expenses. Aggregate pre-tax earnings for the remainder of our retailing group declined $79
million (48.6%) in the second quarter and $116 million (42.3%) in the first six months of 2024 compared to 2023. Nearly all of ourother retailers generated lower earnings in 2024 compared to 2023, reflecting challenging business conditions that contributed to reduced
sales and increased operating expenses.
McLane Company
McLane operates a wholesale distribution business that provides grocery and non-food consumer products to retailers andconvenience stores (“retail”) and to restaurants (“restaurant”). McLane also operates wholesale distributors of distilled spirits, wine andbeer (“beverage”). The retail and restaurant distribution businesses generate high sales and very low profit margins and operate in ahighly competitive environment.
Revenues declined 3.3% in the second quarter and 3.9% in the first six months of 2024 compared to 2023, primarily attributable
to lower unit volumes. The revenue reductions were primarily in the restaurant business, which experienced a comparative 8.3% sales
decline in the first six months of 2024 compared to 2023. Pre-tax earnings increased $13 million (10.1%) in the second quarter and $65
million (26.9%) in the first six months of 2024 compared to 2023. The increases in earnings reflected increases in the overall grossmargin rate and lower year-to-date operating expenses, which more than offset the impact of lower sales.
Non-Controlled Businesses
After-tax earnings of our non-controlled businesses in 2024 and 2023 included our proportionate share of earnings of Kraft Heinz,
Occidental Petroleum and Berkadia. Earnings in 2023 also included our 38.6% share of Pilot’s earnings in January, after which Pilot
became a consolidated subsidiary. After-tax equity earnings in non-controlled businesses declined $315 million in the second quarter
and $478 million in the first six months of 2024 versus 2023. The declines in 2024 reflected lower earnings from Kraft Heinz andOccidental and the inclusion of Pilot in January 2023.

44

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Investment Gains (Losses)
A summary of investment gains (losses) recorded in earnings follows (dollars in millions).
Second Quarter
2024
2023

Investment gains (losses)
Income taxes and noncontrolling interests
Net earnings
Effective income tax rate$$

23,857$
5,107
18,750$21.3%

First Six Months
2024
2023

33,061$
7,192
25,869$21.7%

25,733$
5,503
20,230$21.3%

67,81914,51153,30821.3%

Investment gains (losses) include unrealized gains and losses arising from changes in market prices of investments in equity
securities, which significantly increases the volatility of our periodic net earnings due to the magnitude of our equity securities portfolio
and the inherent volatility of equity securities prices. Unrealized gains and losses recorded in earnings also include the effects of changes
in foreign currency exchange rates on investments in equity securities of non-U.S. issuers held by our U.S.-based subsidiaries.
Pre-tax investment gains and losses included net unrealized gains of $17.3 billion in the second quarter and $29.7 billion in thefirst six months of 2024 and $33.0 billion in the second quarter and $63.8 billion in the first six months of 2023 on securities we held at
the end of the applicable period. In addition, we recognized gains of $6.6 billion in the second quarter and losses of $3.9 billion in thefirst six months of 2024 attributable to changes in market prices on equity securities we sold during the applicable period. In the second
quarter and first six months of 2023, we recognized gains on securities we sold during each period of $31 million and $1.0 billion,
respectively.
Taxable gains and losses on equity securities sold generally represent the difference between sales proceeds and the original costof the securities sold. Sales of equity securities produced taxable gains of $59.6 billion in the second quarter and $73.7 billion in thefirst six months of 2024 compared to $2.4 billion in the second quarter and $4.6 billion in the first six months of 2023. Pre-tax investment
gains in the first six months of 2023 also included a non-cash gain of approximately $3.0 billion related to the remeasurement of our
pre-existing interest in Pilot to fair value through the application of acquisition accounting upon attaining control of Pilot for financial
reporting purposes.
We believe that investment gains and losses, whether realized from sales or unrealized from changes in market prices, are often
meaningless in terms of understanding our reported consolidated earnings or evaluating our periodic economic performance. We also
continue to believe the investment gains and losses recorded in earnings in any given period has little analytical or predictive value.
Other
A summary of after-tax other earnings (losses) follows (in millions).
Second Quarter
2024
2023

Acquisition accounting expenses
Corporate interest expense, before foreign currency effects
Foreign currency exchange rate gains on Berkshire
and BHFC non-U.S. Dollar senior notes
Other earnings$$

First Six Months
2024
2023

(137) $
(67)(200) $
(54)(262) $
(122)

(402)
(118)

446
291
533

465
129
340

1,043
547
1,206

448
301
229

$

$

$

After-tax acquisition accounting expenses include charges arising from the application of the acquisition method in connection
with certain of Berkshire’s past business acquisitions. These charges arise primarily from the amortization of intangible assets recordedin connection with those business acquisitions.
Foreign currency exchange rate gains pertain to Berkshire’s and BHFC’s Japanese Yen, Euro and Great Britain Pounddenominated debt. Changes in foreign currency exchange rates produce unrealized gains and losses from the periodic revaluation ofthese liabilities into U.S. Dollars. The gains and losses recorded in any given period can be significant due to the magnitude of theborrowings and the inherent volatility in foreign currency exchange rates. Other earnings consist primarily of Berkshire parent company
investment income, corporate expenses, intercompany interest income on loans to operating subsidiaries when the related interest
expense is included in earnings of the operating subsidiaries, and unallocated income taxes. Other earnings increased in 2024 primarily
due to increased interest income.

45

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Financial Condition
Our Consolidated Balance Sheet continues to reflect significant liquidity and a very strong capital base. Berkshire’s shareholders’equity at June 30, 2024 was $601.7 billion, an increase of $40.4 billion since December 31, 2023. Net earnings attributable to Berkshire
shareholders were $43.1 billion for the first six months of 2024 and included after-tax investment gains of approximately $20.2 billion.
Investment gains and losses from changes in the market prices of our investments in equity securities will produce significant volatility
in our earnings.
Berkshire’s common stock repurchase program, as amended, permits Berkshire to repurchase its Class A and Class B shares atprices below Berkshire’s intrinsic value, as conservatively determined by Warren Buffett, Berkshire’s Chairman of the Board and Chief
Executive Officer. We are not committed to purchase a minimum or subject to maximum repurchase amounts. We will not repurchaseour stock if it reduces our consolidated cash, cash equivalents and U.S. Treasury Bills holdings to below $30 billion. Financial strengthand redundant liquidity will always be of paramount importance at Berkshire. Berkshire paid $2.9 billion in the first six months of 2024
to repurchase its common stock.
At June 30, 2024, our insurance and other businesses held cash, cash equivalents and U.S. Treasury Bills of $271.5 billion, which
included $237.6 billion in U.S. Treasury Bills. Investments in equity and fixed maturity securities (excluding our investments in Kraft
Heinz and Occidental common stock) were $301.7 billion. A significant portion of our consolidated cash and investments are held in
our regulated insurance subsidiaries. During the first six months of 2024, we paid $4.3 billion to acquire equity securities and we received$97.1 billion from sales of equity securities, which contributed to the increase in investments in U.S. Treasury Bills over that period. On
January 16, 2024, we acquired the remaining 20% noncontrolling ownership interest in Pilot for $2.6 billion.
Our consolidated borrowings at June 30, 2024 were $123.6 billion, of which over 95% were issued by the Berkshire parent
company and BHFC, or by BNSF and BHE and its subsidiaries. Berkshire parent company debt outstanding at June 30, 2024 was $18.1
billion, a decrease of $710 million from December 31, 2023. In April 2024, Berkshire issued an aggregate ¥263.3 billion (approximately$1.7 billion) of senior notes. In the first six months of 2024, senior note maturities were $1.1 billion and we recorded reductions on
borrowings of $1.3 billion from changes in foreign currency exchange rates on Berkshire parent company non-U.S. Dollar denominateddebt.
Senior note borrowings of BHFC, a wholly-owned financing subsidiary, were approximately $18.0 billion at June 30, 2024,
relatively unchanged from December 31, 2023. BHFC’s borrowings are used to fund a portion of loans originated and acquired by
Clayton Homes and equipment held for lease by our railcar leasing business. Berkshire guarantees BHFC’s senior notes for the full andtimely payment of principal and interest.
BNSF’s outstanding debt was $24.2 billion as of June 30, 2024, an increase of $750 million from December 31, 2023. In June
2024, BNSF issued $1.3 billion of 5.5% debentures due in 2055. BHE’s aggregate borrowings increased $1.1 billion in the first six
months of 2024 to approximately $57.5 billion at June 30. In the first six months of 2024, BHE subsidiaries issued $5.4 billion of term
debt with a weighted average interest rate of 5.4% and maturity dates ranging from 2029 to 2055 and BHE and its subsidiaries repaid
term debt and short-term borrowings aggregating approximately $4.0 billion. Pilot prepaid third-party borrowings of $5.7 billion in thefirst quarter of 2024. Berkshire does not guarantee the repayment of debt issued by BNSF, BHE or any of their subsidiaries or affiliates.
In the first six months of 2024, our diverse group of businesses generated net operating cash flows of $24.2 billion. Operating
cash flows over the remainder of 2024 will be reduced by significant income tax payments derived from taxable gains on disposals ofequity securities. The gross proceeds from these sales were included in cash flows from investing activities. Our consolidated capital
expenditures for property, plant and equipment and equipment held for lease were $8.9 billion in the first six months of 2024, which
included capital expenditures by BNSF and BHE of $5.9 billion. BNSF and BHE maintain very large investments in capital assets(property, plant and equipment) and regularly make significant capital expenditures in the normal course of business. Forecasted capital
expenditures for BHE and BNSF over the remainder of 2024 are approximately $7.4 billion.
Contractual Obligations
We are party to other contracts associated with ongoing business activities, which will result in cash payments to counterparties
in future periods. Certain obligations are included in our Consolidated Balance Sheets, such as borrowings, operating lease liabilities
and shared aircraft repurchase liabilities.
We are also obligated to pay claims arising from property and casualty contracts issued by our insurance subsidiaries, including
amounts from retroactive reinsurance. However, the timing and amount of the payments under insurance and reinsurance contracts arecontingent upon the outcome of future events. Actual payments will likely vary, perhaps materially, from any forecasted payments, aswell as from the liabilities recorded in our Consolidated Balance Sheet. We anticipate that these payments will be funded by operating
cash flows.

46

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Contractual Obligations
Other obligations pertaining to the acquisition of goods or services in the future, such as certain purchase obligations, are notcurrently reflected in the Consolidated Financial Statements and will be recognized in future periods as the goods are delivered orservices are provided. Except as otherwise disclosed in this Quarterly Report, our contractual obligations as of June 30, 2024 were, in
the aggregate, not materially different from those disclosed in “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” contained in Berkshire’s Annual Report on Form 10-K for the year ended December 31, 2023.
Critical Accounting Estimates
Certain accounting policies require us to make estimates and judgments in determining the amounts reflected in our Consolidated
Financial Statements. Such estimates and judgments necessarily involve varying and possibly significant degrees of uncertainty.
Accordingly, certain amounts currently recorded in our Consolidated Financial Statements will likely be adjusted in the future based on
new available information and changes in other facts and circumstances. Reference is made to “Critical Accounting Estimates” discussed
in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Berkshire’s Annual Reporton Form 10-K for the year ended December 31, 2023.
Our Consolidated Balance Sheet as of June 30, 2024 included estimated liabilities for unpaid losses and loss adjustment expenses
from property and casualty insurance and reinsurance contracts of $146.3 billion. Due to the inherent uncertainties in the processes of
establishing these liabilities, the actual ultimate claim amounts will likely differ from the currently recorded amounts. A very small
percentage change in estimates of this magnitude can result in a material effect on periodic earnings. The effects from changes in theseestimates are recorded as a component of insurance losses and loss adjustment expenses in the period of the change.
Our Consolidated Balance Sheet as of June 30, 2024 included goodwill of acquired businesses of $84.4 billion and indefinitelived intangible assets of $18.9 billion. In connection with the annual goodwill impairment review in the fourth quarter of 2023, theestimated fair values of nine reporting units did not exceed our carrying values by at least 20%. Our estimated aggregate fair value ofthese units at that time was approximately $58.5 billion, which exceeded our aggregate carrying value of approximately $54.9 billion.
Goodwill of these reporting units totaled approximately $17.3 billion. Three of these reporting units that were acquired in late 2022 andearly 2023, which in the aggregate, had estimated fair values of $21.5 billion, or 1.5% greater than the carrying value, and aggregate
goodwill of approximately $8.5 billion.
Goodwill and indefinite-lived intangible asset impairment reviews include determining the estimated fair values of our reporting
units and of the indefinite-lived intangible assets. Several methods may be used to estimate fair values and significant judgments are
required in making such estimates. Due to the inherent subjectivity and uncertainty in forecasting future cash flows and earnings overlong periods of time, actual results may differ materially from the forecasts.
As of June 30, 2024, we concluded it was more likely than not that goodwill and other indefinite-lived intangible assets recordedin our Consolidated Balance Sheet were not impaired. However, the fair value estimates of the reporting units and assets are subject tochange based on changes in market and economic conditions and events affecting our businesses, which we cannot reliably predict. It
is reasonably possible that adverse changes in such conditions or events could result in the recognition of impairment losses in our
Consolidated Financial Statements.
Information concerning accounting pronouncements to be adopted in the future is included in Note 2 to the accompanying
Consolidated Financial Statements.
Forward-Looking Statements
Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases
and some oral statements of Berkshire officials during presentations about Berkshire or its subsidiaries are “forward-looking” statements
within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include statements
which are predictive in nature, which depend upon or refer to future events or conditions, or which include words such as “expects,”“anticipates,” “intends,” “plans,” “believes,” “estimates” or similar expressions. In addition, any statements concerning future financial
performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects and possible future Berkshire
actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements
are based on current expectations and projections about future events and are subject to risks, uncertainties and assumptions about
Berkshire and its subsidiaries, economic and market factors and the industries in which we do business, among other things. Thesestatements are not guarantees of future performance and we have no specific intention to update these statements.

47

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a numberof factors. The principal risk factors that could cause our actual performance and future events and actions to differ materially from suchforward-looking statements include, but are not limited to, changes in market prices of our investments in equity securities; theoccurrence of one or more catastrophic events, such as an earthquake, hurricane, geopolitical conflict, act of terrorism or cyber-attack
that causes losses insured by our insurance subsidiaries and/or losses to our business operations; the frequency and severity of epidemics,
pandemics or other outbreaks, and other events that negatively affect our operating results and restrict our access to borrowed funds
through the capital markets at reasonable rates; changes in laws or regulations affecting our insurance, railroad, utilities and energy andfinance subsidiaries; changes in federal income tax laws; and changes in general economic and market factors that affect the prices of
securities or the industries in which we do business.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Reference is made to Berkshire’s Annual Report on Form 10-K for the year ended December 31, 2023 and in particular the“Market Risk Disclosures” included in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Asof June 30, 2024, there were no material changes in the market risks described in Berkshire’s Annual Report.
Item 4. Controls and Procedures
As of the end of the period covered by this Quarterly Report on Form 10-Q, the Company carried out an evaluation, under thesupervision and with the participation of the Company’s management, including the Chairman (Chief Executive Officer) and the SeniorVice President (Chief Financial Officer), of the effectiveness of the design and operation of the Company’s disclosure controls andprocedures pursuant to Exchange Act Rule 13a-15. Based upon that evaluation, the Chairman (Chief Executive Officer) and the SeniorVice President (Chief Financial Officer) concluded that the Company’s disclosure controls and procedures are effective in timely alertingthem to material information relating to the Company (including its consolidated subsidiaries) required to be included in the Company’s
periodic SEC filings. During the quarter, there have been no significant changes in the Company’s internal control over financial
reporting or in other factors that could significantly affect internal control over financial reporting.
Part II Other Information
Item 1. Legal Proceedings
Berkshire and its subsidiaries are parties in a variety of legal actions that routinely arise out of the normal course of business,
including legal actions seeking to establish liability directly through insurance contracts or indirectly through reinsurance contracts
issued by Berkshire subsidiaries. Plaintiffs occasionally seek punitive or exemplary damages. We do not believe that such normal androutine litigation will have a material effect on our financial condition or results of operations.
Reference is made to Note 23 to the accompanying Consolidated Financial Statements for information concerning certain
litigation involving Berkshire subsidiaries. Berkshire and certain of its subsidiaries are also involved in other kinds of legal actions,some of which assert or may assert claims or seek to impose fines and penalties. We currently believe that any liability that may arise
as a result of other pending legal actions will not have a material effect on our consolidated financial condition or results of operations.
Item 1A. Risk Factors
Our significant business risks are described in Item 1A to Form 10-K for the year ended December 31, 2023, to which reference
is made herein. The risks and uncertainties we describe are not the only ones facing us. Additional risks and uncertainties not presently
known to us or that we currently deem immaterial may also impair our business or operations. Any adverse effect on our business,financial condition or operating results could result in a decline in the value of our securities and the loss of all or part of your investment.

48

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities
Berkshire’s common stock repurchase program permits Berkshire to repurchase its Class A and Class B shares any time that
Warren Buffett, Berkshire’s Chairman of the Board and Chief Executive Officer, believes that the repurchase price is below Berkshire’s
intrinsic value, conservatively determined. Repurchases may be in the open market or through privately negotiated transactions.
Information with respect to Berkshire’s Class A and Class B common stock repurchased during the second quarter of 2024 follows.

Total number ofshares purchased

PeriodTotal number ofshares purchased
as part of publicly
announced program

Average pricepaid per share

Maximum number orvalue of shares that yet
may be repurchased
under the program

April
Class A common stock
Class B common stock

455
—

$
$

620,809.76
—

455
—

*
*

May
Class A common stock
Class B common stock

100
—

$
$

626,685.61
—

100
—

*
*

June
Class A common stock
Class B common stock

—
—

$
$

—
—

—
—

*
*

——————* The program does not specify a maximum number of shares to be repurchased or obligate Berkshire to repurchase any specific dollar
amount or number of Class A or Class B shares and there is no expiration date to the repurchase program. Berkshire will not repurchaseits common stock if the repurchases reduce the value of Berkshire’s consolidated cash, cash equivalents and U.S. Treasury Bills holdings
to less than $30 billion.
Item 3. Defaults Upon Senior Securities
None
Item 4. Mine Safety Disclosures
Information regarding the Company’s mine safety violations and other legal matters disclosed in accordance with Section 1503(a)of the Dodd-Frank Reform Act is included in Exhibit 95 to this Form 10-Q.
Item 5. Other Information
Berkshire has not adopted a Rule 10b5-1 trading arrangement (as defined in Item 408(a)(1)(i) of Regulation S-K) and no directors
or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (as defined in
Item 408(c) of Regulation S-K) during the second quarter of 2024.

49

Item 6. Exhibits
a. Exhibits3(i)Restated Certificate of Incorporation
Incorporated by reference to Exhibit 3(i) to Form 10-K filed on March 2, 2015.

3(ii)Amended and Restated By-Laws
Incorporated by reference to Exhibit 3(ii) to Form 8-K filed on May 10, 2023.

31.1

Rule 13a-14(a)/15d-14(a) Certifications

31.2

Rule 13a-14(a)/15d-14(a) Certifications

32.1

Section 1350 Certifications

32.2

Section 1350 Certifications

95

Mine Safety Disclosures

101

The following financial information from Berkshire Hathaway Inc.’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2024, formatted in iXBRL (Inline Extensible Business Reporting Language) includes: (i) the Cover Page (ii) the
Consolidated Balance Sheets, (iii) the Consolidated Statements of Earnings, (iv) the Consolidated Statements ofComprehensive Income, (v) the Consolidated Statements of Changes in Shareholders’ Equity, (vi) the Consolidated
Statements of Cash Flows, and (vii) the Notes to Consolidated Financial Statements, tagged in summary and detail.

104

Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101)
SIGNATURE

Pursuant to the requirement of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on
its behalf by the undersigned thereunto duly authorized.
BERKSHIRE HATHAWAY INC.
(Registrant)/S/ MARC D. HAMBURG(Signature)
Marc D. Hamburg,
Senior Vice President andPrincipal Financial Officer

Date: August 3, 2024

50

EXHIBIT 31.1
Quarter ended June 30, 2024
Rule 13a-14(a)/15d-14(a) Certifications
CERTIFICATIONS
I, Warren E. Buffett, certify that:1.

I have reviewed this quarterly report on Form 10-Q of Berkshire Hathaway Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material factnecessary to make the statements made, in light of the circumstances under which such statements were made, not misleadingwith respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in allmaterial respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this report;

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls andprocedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (asdefined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

5.

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report isbeing prepared;b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report ourconclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered bythis report based on such evaluation; andd)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during theregistrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;andThe registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control overfinancial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons
performing the equivalent functions):a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and reportfinancial information; andb)

Any fraud, whether or not material, that involves management or other employees who have a significant role in theregistrant’s internal control over financial reporting.

Date: August 3, 2024
/s/ WARREN E. BUFFETT
Chairman—Principal Executive Officer

EXHIBIT 31.2
Quarter ended June 30, 2024
Rule 13a-14(a)/15d-14(a) Certifications
CERTIFICATIONS
I, Marc D. Hamburg, certify that:1.

I have reviewed this quarterly report on Form 10-Q of Berkshire Hathaway Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material factnecessary to make the statements made, in light of the circumstances under which such statements were made, not misleadingwith respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in allmaterial respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this report;

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls andprocedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (asdefined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

5.

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report isbeing prepared;b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report ourconclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered bythis report based on such evaluation; andd)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during theregistrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;andThe registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control overfinancial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons
performing the equivalent functions):a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and reportfinancial information; andb)

Any fraud, whether or not material, that involves management or other employees who have a significant role in theregistrant’s internal control over financial reporting.

Date: August 3, 2024
/s/ MARC D. HAMBURG
Senior Vice President—Principal Financial Officer

EXHIBIT 32.1
Section 1350 Certifications
Quarter ended June 30, 2024
I, Warren E. Buffett, Chairman and Chief Executive Officer of Berkshire Hathaway Inc. (the “Company”), certify, pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:(1)

the Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2024 (the “Report”) fully complies withthe requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and(2)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operationsof the Company.

Dated: August 3, 2024
/s/ WARREN E. BUFFETT
Warren E. Buffett
Chairman and Chief Executive Officer

EXHIBIT 32.2
Section 1350 Certifications
Quarter ended June 30, 2024
I, Marc D. Hamburg, Senior Vice President and Chief Financial Officer of Berkshire Hathaway Inc. (the “Company”), certify,
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:(1)

the Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2024 (the “Report”) fully complies withthe requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and(2)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operationsof the Company.

Dated: August 3, 2024
/s/ MARC D. HAMBURG
Marc D. Hamburg
Senior Vice President and Chief Financial Officer

EXHIBIT 95
MINE SAFETY VIOLATIONS AND OTHER LEGAL MATTER DISCLOSURESPURSUANT TO SECTION 1503(a) OF THE DODD-FRANK WALL STREETREFORM AND CONSUMER PROTECTION ACT
PacifiCorp and its subsidiaries operate coal mines and coal processing facilities and Acme Brick and its affiliates operate clay, shaleand limestone excavation facilities (collectively, the “mining facilities”) that are regulated by the Federal Mine Safety and HealthAdministration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Safety Act”). MSHA inspects mining
facilities on a regular basis. The total number of reportable Mine Safety Act citations, orders, assessments and legal actions for thethree months ended June 30, 2024 are summarized in the table below and are subject to contest and appeal. The severity andassessment of penalties may be reduced or, in some cases, dismissed through the contest and appeal process. Amounts are reported
regardless of whether PacifiCorp or Acme has challenged or appealed the matter. Mines that are closed or idled are not included in
the information below. PacifiCorp and Acme have not received any notice of a pattern, or notice of the potential to have a pattern,of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed
to the cause and effect of coal or other mine health or safety hazards under Section 104(e) of the Mine Safety Act during the threemonths ended June 30, 2024.
Mine Safety Act

Mining Facilities

Coal:
Bridger (surface)
Wyodak Coal Crushing
Facility
Clay, shale and limestone:
Malvern
Jonesboro
Oklahoma City
Tulsa
Bennett
DentonElgin
Sealy
Texas Clay
Leeds
Montgomery
(1)

(2)
(3)
(4)

(5)

(6)

Section104
Significant
and
Substantial
Citations(1)Legal Actions
Total
Value of
Proposed
MSHA
Assessments(in thousands)

Total
Numberof
MiningRelated
Fatalities

Pending
as of
Last
Day ofPeriod(6)Instituted
During
PeriodResolved
During
Period

—

—

—

—

—

Section104(b)
Orders(2)Section104(d)
Citations/
Orders(3)Section110(b)(2)
Violations(4)Section107(a)
Imminent
DangerOrders(5)

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—
—
—
—
—
3
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—

$

Citations for alleged violations of mandatory health and safety standards that could significantly or substantially contribute to the cause and effect of a safety or healthhazard under Section 104 of the Mine Safety Act.
For alleged failures to totally abate the subject matter of a Mine Safety Act Section 104(a) citation within the period specified in the citation.
For alleged unwarrantable failures (i.e., aggravated conduct constituting more than ordinary negligence) to comply with a mandatory health or safety standard.
For alleged flagrant violations (i.e., reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that
substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury).
For the existence of any condition or practice in a coal or other mine which could reasonably be expected to cause death or serious physical harm before such conditionor practice can be abated.
For the existence of any proposed penalties under Subparts B-H of the Federal Mine Safety and Health Review Commission’s procedural rules. The pending legal
actions are not exclusive to citations, notices, orders and penalties assessed by MSHA during the reporting period.