Company: BRK-A
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025210
Chunk: 167

Company: BERKSHIRE HATHAWAY INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1B
Chunk 167
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4 for the significant assets measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) follows (dollars in millions).  

        FairValue

        PrincipalValuationTechniques
         
        UnobservableInputs
         
        WeightedAverage

        Investments in equity securities:

        Preferred stock
         
        $
        8,429

        Discounted cash flow
         
        Expected duration
         
        5 years

        Discount for illiquidity and subordination
         
        372 bps

        Common stock warrants

        1,234

        Warrant pricing model
         
        Expected duration
         
        6 years

        Volatility
         
        42%
       
       Investments in equity securities in the preceding table include our investments in certain preferred and common stock warrants that do not have readily determinable market values as defined under GAAP. These investments are private placements and are not traded in securities markets. We applied discounted cash flow techniques in valuing the preferred stock and we made assumptions regarding the expected duration of the investment and the effects of illiquidity and 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. 

K-103

Notes to Consolidated Financial Statements 

(22)Common stock The changes in Berkshire’s issued, treasury and outstanding common stock for each of the three years ending December 31, 2024 are shown in the table below. In addition, one million shares of preferred stock are authorized, but none are issued. 

        Class A, $5 Par Value(1.65 million shares authorized)

        Class B, $0.0033 Par Value(3.225 billion shares authorized)

        Issued
         
        Treasury
         
        Outstanding

        Issued
         
        Treasury
         
        Outstanding

        Balance at December 31, 2021
         
        665,901

        (48,788
        )
         
        617,113

        1,488,292,852

        (197,818,349
        )
         
        1,290,474,503

        Conversions of Class A to   Class B common stock
         
        (14,451
        )