Berkshire Hathaway (BRK-B) 10-Q 6 Nov 09 2009 Q3 Quarterly report Financial data

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document information
Document type	10-Q
Amendment flag	false
Document period end date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Oct. 29, 2009	Jun. 30, 2008
Entity Information
Entity registrant name	BERKSHIRE HATHAWAY INC
Entity central index key	0001067983
Current fiscal year end date	--12-31
Entity well-known seasoned issuer	Yes
Entity voluntary filers	No
Entity current reporting status	Yes
Entity filer category	Large Accelerated Filer
Entity public float			$126,497,000,000
Entity Listing items
Entity common stock, shares outstanding		1,056,884
Class A
Entity Listing items
Entity common stock, shares outstanding		1,056,884
Class B
Entity Listing items
Entity common stock, shares outstanding		14,845,356

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Sep. 30, 2009	Dec. 31, 2008
ASSETS
Cash and cash equivalents	$26,919	$25,539
Total assets	292,010	267,399
LIABILITIES
Income taxes, principally deferred	16,903	10,280
Total liabilities	161,328	153,692
SHAREHOLDERS' EQUITY
Common stock and capital in excess of par value	27,086	27,141
Accumulated other comprehensive income	15,816	3,954
Retained earnings	83,171	78,172
Berkshire Hathaway shareholders' equity	126,073	109,267
Noncontrolling interests	4,609	4,440
Total shareholders' equity	130,682	113,707
Total liabilities and shareholders' equity	292,010	267,399
Insurance and Other:
ASSETS
Cash and cash equivalents	23,840	24,302
Investments in fixed maturity securities	32,586	27,115
Investments in equity securities	55,084	49,073
Other investments	31,927	21,535
Receivables	16,047	14,925
Inventories	6,051	7,500
Property, plant and equipment	16,567	16,703
Goodwill	27,617	27,477
Other assets	13,258	13,257
Total assets	222,977	201,887
LIABILITIES
Losses and loss adjustment expenses	59,603	56,620
Unearned premiums	8,753	7,861
Life and health insurance benefits	4,012	3,619
Accounts payable, accruals and other liabilities	15,420	14,987
Notes payable and other borrowings	3,815	4,349
Total liabilities	91,603	87,436
Utilities and Energy:
ASSETS
Cash and cash equivalents	744	280
Property, plant and equipment	30,432	28,454
Goodwill	5,333	5,280
Other assets	7,550	7,556
Total assets	44,059	41,570
LIABILITIES
Accounts payable, accruals and other liabilities	5,703	6,175
Notes payable and other borrowings	19,564	19,145
Total liabilities	25,267	25,320
Finance and Financial Products:
ASSETS
Cash and cash equivalents	2,335	957
Investments in fixed maturity securities	4,765	4,517
Loans and finance receivables	13,514	13,942
Goodwill	1,024	1,024
Other assets	3,336	3,502
Total assets	24,974	23,942
LIABILITIES
Accounts payable, accruals and other liabilities	2,561	2,656
Derivative contract liabilities	10,352	14,612
Notes payable and other borrowings	14,642	13,388
Total liabilities	$27,555	$30,656

Consolidated Statements of Earn

Consolidated Statements of Earnings (USD $)
In Millions, except Share data	3 Months Ended Sep. 30, 2009		3 Months Ended Sep. 30, 2008		9 Months Ended Sep. 30, 2009		9 Months Ended Sep. 30, 2008
Revenues:
Total revenues	$29,904		$27,926		$82,295		$83,194
Costs and expenses:
Total costs and expenses	25,065		26,424		75,208		75,768
Earnings before income taxes and equity method earnings	4,839		1,502		7,087		7,426
Income tax expense	1,601		294		2,107		2,145
Earnings from equity method investments	111		0		307		0
Net earnings	3,349		1,208		5,287		5,281
Less: Earnings attributable to noncontrolling interests	111		151		288		404
Net earnings attributable to Berkshire Hathaway	3,238		1,057		4,999		4,877
Average common shares outstanding [1]	1,551,727	[1]	1,549,226	[1]	1,550,986	[1]	1,548,871	[1]
Net earnings per share attributable to Berkshire Hathaway shareholders [1]	$2,087	[1]	$682	[1]	$3,223	[1]	$3,149	[1]
Insurance and Other:
Revenues:
Insurance premiums earned	6,595		6,465		21,263		18,905
Sales and service revenues	16,178		17,323		46,075		49,415
Interest, dividend and other investment income	1,361		1,143		4,133		3,588
Investment gains/losses	115		(48)		(314)		738
Other-than-temporary impairment losses on investments	(25)		(250)		(3,151)		(679)
Total revenues	24,224		24,633		68,006		71,967
Costs and expenses:
Insurance losses and loss adjustment expenses	4,125		4,796		14,211		12,531
Life and health insurance benefits	435		441		1,320		1,383
Insurance underwriting expenses	1,475		1,102		4,708		4,023
Cost of sales and services	13,614		14,316		38,700		40,530
Selling, general and administrative expenses	2,015		1,861		6,051		5,770
Interest expense	29		42		101		115
Total costs and expenses	21,693		22,558		65,091		64,352
Utilities and Energy:
Revenues:
Operating revenues	2,741		3,240		8,212		9,588
Other revenues	71		58		204		139
Total revenues	2,812		3,298		8,416		9,727
Costs and expenses:
Cost of sales and operating expenses	2,080		2,468		6,390		7,462
Interest expense	291		304		880		894
Total costs and expenses	2,371		2,772		7,270		8,356
Finance and Financial Products:
Revenues:
Interest income	420		464		1,257		1,360
Investment gains/losses	(5)		2		57		6
Derivative gains/losses	1,732		(1,261)		2,572		(2,213)
Other	721		790		1,987		2,347
Total revenues	2,868		(5)		5,873		1,500
Costs and expenses:
Interest expense	174		168		511		474
Other costs and expenses	827		926		2,336		2,586
Total costs and expenses	$1,001		$1,094		$2,847		$3,060
[1]Average shares outstanding include average Class A common shares and average Class B common shares determined on an equivalent Class A common stock basis. Net earnings per common share attributable to Berkshire Hathaway shown above represents net earnings per equivalent Class A common share. Net earnings per Class B common share is equal to one-thirtieth (1/30) of such amount.

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash flows from operating activities:
Net earnings	$5,287	$5,281
Adjustments to reconcile net earnings to operating cash flows:
Investment (gains) losses and other-than-temporary impairment losses	3,408	(65)
Depreciation	2,315	2,071
Other	(101)	(241)
Changes in operating assets and liabilities before business acquisitions:
Losses and loss adjustment expenses	2,244	988
Deferred charges reinsurance assumed	(8)	362
Unearned premiums	802	1,551
Receivables and originated loans	(252)	(2,564)
Derivative contract assets and liabilities	(4,315)	3,182
Income taxes	693	(904)
Other assets and liabilities	1,953	(1,233)
Net cash flows from operating activities	12,026	8,428
Cash flows from investing activities:
Purchases of fixed maturity securities	(8,939)	(32,601)
Purchases of equity securities	(3,204)	(9,449)
Purchases of other investments	(6,068)	0
Sales of fixed maturity securities	3,222	13,166
Redemptions and maturities of fixed maturity securities	4,003	15,675
Sales of equity securities	2,126	2,067
Purchases of loans and finance receivables	(227)	(1,359)
Principal collections on loans and finance receivables	618	558
Acquisitions of businesses	(75)	(5,860)
Purchases of property, plant and equipment	(3,803)	(4,201)
Other investing activities	1,218	(17)
Net cash flows from investing activities	(11,129)	(22,021)
Cash flows from financing activities:
Change in short term borrowings	(721)	532
Acquisitions of noncontrolling interests and other	(377)	(87)
Net cash flows from financing activities	387	2,756
Effects of foreign currency exchange rate changes	96	(123)
Increase (decrease) in cash and cash equivalents	1,380	(10,960)
Cash and cash equivalents:
Cash and cash equivalents at beginning of year	25,539	44,329
Cash and cash equivalents at end of first nine months	26,919	33,369
Insurance and Other:
Cash flows from financing activities:
Proceeds from borrowings	79	102
Repayments of borrowings	(674)	(174)
Cash and cash equivalents:
Cash and cash equivalents at beginning of year	24,302	37,703
Cash and cash equivalents at end of first nine months	23,840	27,899
Utilities and Energy:
Cash flows from financing activities:
Proceeds from borrowings	1,241	2,147
Repayments of borrowings	(383)	(2,215)
Cash and cash equivalents:
Cash and cash equivalents at beginning of year	280	1,178
Cash and cash equivalents at end of first nine months	744	531
Finance and Financial Products:
Cash flows from financing activities:
Proceeds from borrowings	1,550	5,149
Repayments of borrowings	(328)	(2,698)
Cash and cash equivalents:
Cash and cash equivalents at beginning of year	957	5,448
Cash and cash equivalents at end of first nine months	$2,335	$4,939

General

General
	9 Months Ended Sep. 30, 2009 USD / shares
General [Abstract]
Note 1. General	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. Reference is made to Berkshires most recently issued Annual Report on Form 10-K (Annual Report) that included information necessary or useful to understanding Berkshires businesses and financial statement presentations. In particular, Berkshires significant accounting policies and practices were presented as Note 1 to the Consolidated Financial Statements included in the Annual Report. Certain immaterial amounts in 2008 have been reclassified to conform with the current year presentation. Financial information in this Report reflects any adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary to a fair statement of results for the interim periods in accordance with accounting principles generally accepted in the United States (GAAP). For a number of reasons, Berkshires results for interim periods are not normally 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 relatively more significant to results of interim periods than to results for a full year. Variations in the amounts and timing of investment gains/losses and other-than-temporary impairmentlosses on investments can cause significant variations in periodic net earnings. Investment gains/losses are recorded when investments are sold or in instances when investments are required to be marked-to-market. In addition, changes in the fair value of derivative assets/liabilities associated with derivative contracts that do not qualify for hedge accounting treatment can cause significant variations in periodic net earnings.

Accounting pronouncements adopt

Accounting pronouncements adopted in 2009
	9 Months Ended Sep. 30, 2009 USD / shares
Accounting pronouncements adopted in 2009 [Abstract]
Note 2. Accounting pronouncements adopted in 2009	Note 2.Accounting pronouncements adopted in 2009 During the third quarter of 2009, the FASB Accounting Standards Codification (the Codification or ASC) became effective and superseded prior existing Financial Accounting Standards and is now the single source of authoritative GAAP.The Codification does not change previous GAAP and accordingly, its adoption did not have a material impact on Berkshires consolidated financial statements. As of January1, 2009, Berkshire adopted certain provisions of ASC 810 Consolidation which require that noncontrolling interests (formerly known as minority interests) be displayed in the balance sheet as a separate component of shareholders equity and that net earnings attributable to the noncontrolling interests be clearly indentified and presented in the statement of earnings. In addition, changes in ownership interests where the parent retains a controlling interest are to be reported as transactions affecting shareholders equity. Previously such transactions were reportable as additional investment purchases (potentially resulting in recognition of additional other assets, including goodwill, or liabilities) or sales. During the first nine months of 2009, Berkshire acquired certain noncontrolling interests in subsidiaries that resulted in a reduction to shareholders equity attributable to Berkshire of approximately $118 million, representing the excess of consideration paid over the previously recorded balance sheet carrying amount of the acquired noncontrolling (minority) interests. Effective April 1, 2009, Berkshire adopted guidance issued by the FASB in April 2009 relating to financial instruments.The following three paragraphs further discuss this guidance, the adoption of which was not material to Berkshires Consolidated Financial Statements. The FASB amended standards included in ASC 320 InvestmentsDebt and Equity Securities related to recognition, measurement and presentation for other-than-temporary impairments of debt securities and changed the disclosure requirements for both debt and equity securities. With respect to an investment in a debt security, an other-than-temporary impairment occurs if the investor (a) intends to sell the security before amortized cost is recovered, (b) will more likely than not be required to sell the security before amortized cost is recovered or (c) does not expect to ultimately recover the amortized cost basis even if it does not intend to sell the security. Under (a) and (b) the entire other-than-temporary impairment loss is recognized in earnings. Under (c) a credit loss is recognized in earnings to the extent that the present value of expected cash flows is less than the amortized cost basis and any difference between fair value and the amortized cost basis net of the credit loss is reflected in other comprehensive income net of applicable income taxes. The FASB amended ASC 820 Fair Value Measurements and Disclosures to clarify that adjustments to quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value and to provide guidance on the circumstances indicating whether markets are illiquid or disorderly. Th

Accounting pronouncements to be

Accounting pronouncements to be adopted
	9 Months Ended Sep. 30, 2009 USD / shares
Accounting pronouncements to be adopted [Abstract]
Note 3. Accounting pronouncements to be adopted	Note 3.Accounting pronouncements to be adopted In June 2009, the FASB issued revised standards relating to securitizations and special-purpose entities.The guidance eliminates the concept of a qualifying special-purpose entity (QSPE) and the exemption for QSPEs from previous consolidation guidance and also modifies the derecognition criteria for transfers of financial assets.The guidance includes new criteria for determining the primary beneficiary of variable interest entities and increases the frequency in which reassessments must be made to determine the primary beneficiary of such variable interest entities.The guidance also requires additional disclosures and is effective for financial statements issued for fiscal periods beginning after November 15, 2009. Berkshire is currently evaluating the impact these changes in accounting standards will have on its consolidated financial statements. In August 2009, the FASB issued Accounting Standards Update 2009-05, Measuring Liabilities at Fair Value (ASU 2009-05).ASU 2009-05 provides guidance on valuing a liability when a quoted price in an active market is not available and is effective October 1, 2009. Berkshire does not anticipate that the adoption of ASU 2009-05 will have a material impact on its consolidated financial statements.

Business acquisitions

Business acquisitions
	9 Months Ended Sep. 30, 2009 USD / shares
Business acquisitions [Abstract]
Note 4. Business acquisitions	Note 4.Business acquisitions Berkshires long-held acquisition strategy is to purchase businesses with consistent earnings, good returns on equity, able and honest management and at sensible prices. On March18, 2008, Berkshire acquired 60% of Marmon Holdings, Inc. (Marmon), a private company owned by trusts for the benefit of members of the Pritzker Family of Chicago, for $4.5 billion. In the second quarter of 2008, subsequent to this acquisition, Berkshire acquired additional shares of Marmon and currently owns 63.6%. Under the terms of the original purchase agreement, Berkshire will acquire the remaining interests in Marmon between 2011 and 2014 for consideration based on the future earnings of Marmon. Berkshire also acquired several other relatively small businesses during 2008. Consideration paid for all businesses acquired in the year ended December 31, 2008 (including Marmon) was approximately $6.1 billion. Marmon consists of approximately 130 manufacturing and service businesses that operate independently within eleven diverse business sectors. These sectors are: Engineered Wire cable, serving energy related markets, residential and non-residential construction and other industries; Building Wire, producing copper electrical wiring for residential, commercial and industrial buildings; Transportation Services engineered products, including railroad tank cars and intermodal tank containers; Highway Technologies, primarily serving the heavy-duty highway transportation industry; Distribution Services for specialty pipe and steel tubing; Flow Products, producing a variety of metal products and materials for the plumbing, HVAC/R, construction and industrial markets; Industrial Products, including metal fasteners, safety products and metal fabrication; Construction Services, providing the leasing and operation of mobile cranes primarily to the energy, mining and petrochemical markets; Water Treatment equipment for residential, commercial and industrial applications; Retail Store Fixtures, providing store fixtures and accessories for major retailers worldwide; and Food Service Equipment, providing food preparation equipment and shopping carts for restaurants and retailers worldwide. Marmon operates more than 250 manufacturing, distribution and service facilities, primarily in North America, Europe and China. The results of operations for businesses acquired in 2008 are included in Berkshires consolidated results from the effective date of each acquisition. The following table sets forth certain unaudited pro forma consolidated earnings data for the first nine months of 2008 as if each acquisition occurring during 2008 was consummated on the same terms at the beginning of the year. Amounts are in millions, except earnings per share. 2008 Total revenues $ 84,601 Net earnings attributable to Berkshire Hathaway 4,961 Earnings per equivalent ClassA common share attributable to Berkshire Hathaway shareholders 3,203

Investments in fixed maturity s

Investments in fixed maturity securities
	9 Months Ended Sep. 30, 2009 USD / shares
Investments in fixed maturity securities [Abstract]
Note 5. Investments in fixed maturity securities	Note 5.Investments in fixed maturity securities Investments in securities with fixed maturities as of September 30, 2009 and December 31, 2008 are shown below (in millions). Amortized Unrealized Unrealized Fair Cost Gains Losses * Value September 30, 2009 U.S. Treasury, U.S. government corporations and agencies $ 2,358 $ 59 $ $ 2,417 States, municipalities and political subdivisions 3,904 286 (1 ) 4,189 Foreign governments 11,197 406 (34 ) 11,569 Corporate bonds 13,473 1,897 (637 ) 14,733 Mortgage-backed securities 4,130 342 (29 ) 4,443 $ 35,062 $ 2,990 $ (701 ) $ 37,351 Insurance and other $ 30,814 $ 2,420 $ (648 ) $ 32,586 Finance and financial products 4,248 570 (53 ) 4,765 $ 35,062 $ 2,990 $ (701 ) $ 37,351 December 31, 2008 U.S. Treasury, U.S. government corporations and agencies $ 2,107 $ 123 $ (2 ) $ 2,228 States, municipalities and political subdivisions 4,504 242 (5 ) 4,741 Foreign governments 9,106 343 (59 ) 9,390 Corporate bonds 10,798 394 (1,568 ) 9,624 Mortgage-backed securities 5,400 338 (89 ) 5,649 $ 31,915 $ 1,440 $ (1,723 ) $ 31,632 Insurance and other $ 27,618 $ 1,151 $ (1,654 ) $ 27,115 Finance and financial products 4,297 289 (69 ) 4,517 $ 31,915 $ 1,440 $ (1,723 ) $ 31,632 * Includes unrealized losses of $659 million at September 30, 2009 and $176 million at December 31, 2008 related to securities that have been in an unrealized loss position for 12 months or more. The amortized cost and estimated fair value of securities with fixed maturities at September 30, 2009 are summarized below by contractual maturity dates. Actual maturities will differ from contractual maturities because issuers of certain of the securities retain early call or prepayment rights. Amounts are in millions. Due after one Due after five Due in one year through years through Due after Mortgage-backed year or less five years ten years ten years securities Total Amortized cost $ 4,507 $ 16,246 $ 6,532 $ 3,647 $ 4,130 $ 35,062 Fair value 4,632 17,101 6,854 4,321 4,443 37,351

Investments in equity securitie

Investments in equity securities
	9 Months Ended Sep. 30, 2009 USD / shares
Investments in equity securities [Abstract]
Note 6. Investments in equity securities	Note 6.Investments in equity securities Investments in equity securities as of September 30, 2009 and December 31, 2008 are summarized below (in millions). Unrealized Unrealized Fair Cost Basis Gains Losses Value September 30, 2009 American Express Company $ 1,287 $ 3,853 $ $ 5,140 The Coca-Cola Company 1,299 9,441 10,740 ConocoPhillips 2,249 345 2,594 Johnson Johnson 2,322 70 (60 ) 2,332 Kraft Foods Inc. 4,330 (908 ) 3,422 The Procter Gamble Company 5,484 3 (162 ) 5,325 Wells Fargo Company 7,194 2,878 (843 ) 9,229 Other 14,758 5,458 (1,591 ) 18,625 $ 38,923 $ 22,048 $ (3,564 ) $ 57,407 Insurance and other $ 38,255 $ 20,393 $ (3,564 ) $ 55,084 Finance and financial products * 436 33 469 Utilities and energy * 232 1,622 1,854 $ 38,923 $ 22,048 $ (3,564 ) $ 57,407 December 31, 2008 American Express Company $ 1,287 $ 1,525 $ $ 2,812 The Coca-Cola Company 1,299 7,755 9,054 ConocoPhillips 6,820 (2,422 ) 4,398 Johnson Johnson 1,847 24 (76 ) 1,795 Kraft Foods Inc. 4,330 (832 ) 3,498 The Procter Gamble Company 5,484 200 5,684 Wells Fargo Company 6,703 2,850 (580 ) 8,973 Other 12,370 2,428 (1,939 ) 12,859 $ 40,140 $ 14,782 $ (5,849 ) $ 49,073 * Included in Other assets. Berkshire uses no bright-line test in determining whether impairments are temporary or other-than-temporary. Berkshire considers several factors in determining other-than-temporary impairment losses including the current and expected long-term business prospects of the issuer, the length of time and relative magnitude of the price decline and its ability and intent to hold the investment until the price recovers. Unrealized losses at September 30, 2009 included $575 million related to securities that have been in an unrealized loss position for 12 months or more. Approximately 90% of the gross unrealized losses at September 30, 2009 were concentrated in six issuers. Unrealized losses generally ranged from 3% to 40% of cost. In managements judgment, the future earnings potential and underlying business economics of these companies are favorable and Berkshire possesses the ability and intent to hold these securities until their prices recover.Changing market conditions and other facts and circumstances may change the business prospects of these issuers as well as Berkshires ability and intent to hold these securities until the prices recover.Accordingly, other-than-temporary impairment charges may be recorded in future periods with respect to one or more of these securities.

Other Investments

Other Investments
	9 Months Ended Sep. 30, 2009 USD / shares
Other Investments [Abstract]
Note 7. Other Investments	Note 7.Other Investments A summary of other investments as of September 30, 2009 and December 31, 2008 follows (in millions). Cost Unrealized Gains Fair Value Carrying Value September 30, 2009 Fixed maturity and equity $ 20,089 $ 6,198 $ 26,287 $ 25,451 Equity method 5,851 278 6,129 6,476 $ 25,940 $ 6,476 $ 32,416 $ 31,927 December 31, 2008 Fixed maturity and equity $ 14,452 $ 36 $ 14,488 $ 14,675 Equity method 5,919 352 6,271 6,860 $ 20,371 $ 388 $ 20,759 $ 21,535 Fixed maturity and equity investments in the preceding table include Berkshires investments in The Goldman Sachs Group, Inc. (GS), The General Electric Company (GE) and the Wm. Wrigley Jr. Company (Wrigley), which were acquired in the fourth quarter of 2008. In 2009, investments were also made in the Swiss Reinsurance Company Limited (Swiss Re) and The Dow Chemical Company (Dow).Additional information regarding these investments follows. Berkshire owns 50,000 shares of 10% Cumulative Perpetual Preferred Stock of GS (GS Preferred) and Warrants to purchase 43,478,260 shares of common stock of GS (GS Warrants) which were acquired for a combined cost of $5 billion. The GS Preferred may be redeemed at any time by GS at a price of $110,000 per share ($5.5 billion in aggregate). The GS Warrants expire in 2013 and can be exercised for an additional aggregate cost of $5 billion ($115/share). Berkshire also owns 30,000 shares of 10% Cumulative Perpetual Preferred Stock of GE (GE Preferred) and Warrants to purchase 134,831,460 shares of common stock of GE (GE Warrants) which were acquired for a combined cost of $3 billion. The GE Preferred may be redeemed beginning in October 2011 by GE at a price of $110,000 per share ($3.3 billion in aggregate). The GE Warrants expire in 2013 and can be exercised for an additional aggregate cost of $3 billion ($22.25/share). Berkshire owns $4.4 billion par amount of 11.45% subordinated notes due 2018 of Wrigley (Wrigley Notes) and $2.1 billion of 5% preferred stock of Wrigley (Wrigley Preferred). The Wrigley Notes and Wrigley Preferred were acquired in connection with Mars, Incorporateds acquisition of Wrigley. On March23, 2009, Berkshire acquired a 12% convertible perpetual capital instrument issued by Swiss Re at a cost of 3 billion Swiss Francs (CHF), which is also the face amount of the instrument. The instrument has no maturity or mandatory redemption date but can be redeemed under certain conditions at the option of Swiss Re at 140% of the face amount until March23, 2011 and thereafter at 120% of the face amount. The instrument possesses no voting rights and is subordinated to senior securities of Swiss Re as defined in the agreement. Beginning March23, 2012, the instrument can be converted at Berkshires option into 120,000,000 common shares of Swiss Re (a rate of 25 CHF per share of Swiss Re common stock). On April1, 2009, Berkshire acquired 3,000,000 shares of Series A Cumulative Convertible Perpe

Investment gains and losses

Investment gains and losses
	9 Months Ended Sep. 30, 2009 USD / shares
Investment gains/losses [Abstract]
Note 8. Investment gains/losses	Note 8.Investment gains/losses Investment gains/losses are summarized below (in millions). Third Quarter First Nine Months 2009 2008 2009 2008 Fixed maturity securities: Gross gains from sales and other disposals $ 44 $ 46 $ 216 $ 152 Gross losses from sales and other disposals (8 ) (4 ) (17 ) (5 ) Equity securities: Gross gains from sales 94 9 189 686 Gross losses from sales (7 ) (100 ) (566 ) (104 ) Other (13 ) 3 (79 ) 15 $ 110 $ (46 ) $ (257 ) $ 744 Net investment gains/losses are reflected in the Consolidated Statements of Earnings as follows (in millions). Third Quarter First Nine Months 2009 2008 2009 2008 Insurance and other $ 115 $ (48 ) $ (314 ) $ 738 Finance and financial products (5 ) 2 57 6 $ 110 $ (46 ) $ (257 ) $ 744

Derivative contracts of finance

Derivative contracts of finance and financial products businesses
	9 Months Ended Sep. 30, 2009 USD / shares
Derivative contracts of finance and financial products businesses [Abstract]
Note 9. Derivative contracts of finance and financial products businesses	Note 9.Derivative contracts of finance and financial products businesses Derivative contracts of Berkshires finance and financial products businesses, with limited exceptions, are not designated as hedges for financial reporting purposes. These contracts were initially entered into with the expectation that the premiums received would exceed the amounts ultimately paid to counterparties. Changes in the fair values of such contracts are reported in earnings as derivative gains/losses. A summary of derivative contracts outstanding as of September 30, 2009 and December31, 2008 follows (in millions). September 30, 2009 December31, 2008 Assets(3) Liabilities Notional Value Assets(3) Liabilities Notional Value Equity index put options $ $ 8,012 $ 38,592 (1) $ $ 10,022 $ 37,134 (1) Credit default obligations: High yield indexes 1,213 5,855 (2) 3,031 7,892 (2) States/municipalities 657 16,042 (2) 958 18,364 (2) Individual corporate 11 3,690 (2) 105 3,900 (2) Other 449 500 503 528 Counterparty netting and funds held as collateral (238 ) (30 ) (295 ) (32 ) $ 222 $ 10,352 $ 208 $ 14,612 (1) Represents the aggregate undiscounted amount payable at the contract expiration dates assuming that the value of each index is zero at the contract expiration date. (2) Represents the maximum undiscounted future value of losses payable under the contracts, assuming a sufficient number of credit defaults occur. The number of losses required to exhaust contract limits under substantially all of the contracts is dependent on the loss recovery rate related to the specific obligor at the time of the default. (3) Included in Other assets of finance and financial products businesses. A summary of derivative gains/losses included in the Consolidated Statements of Earnings are as follows (in millions). Third Quarter First Nine Months 2009 2008 2009 2008 Equity index put options $ 220 $ (880 ) $ 2,010 $ (1,731 ) Credit default obligations 1,443 (342 ) 483 (478 ) Other 69 (39 ) 79 (4 ) $ 1,732 $ (1,261 ) $ 2,572 $ (2,213 ) Berkshire has written equity index put option contracts on four major equity indexes including three indexes outside of the United States. These contracts are European style options and will be settled on the contract expiration dates, which occur between June 2018 and January 2028. Future payments, if any, under these contracts will be required if the underlying index value is below the strike price at the contract expiration dates. Premiums on these contracts were received in full at the contract inception dates and therefore Berkshire has no counterparty credit risk. At September 30, 2009, the aggregate intrinsic value (the undiscounted

Fair value measurements

Fair value measurements
	9 Months Ended Sep. 30, 2009 USD / shares
Fair value measurements [Abstract]
Note 10. Fair value measurements	Note 10.Fair value measurements The fair values of Berkshires financial assets and liabilities as of September 30, 2009 and December 31, 2008 are shown in the following table (in millions). The carrying values of cash and cash equivalents, accounts receivable, accounts payable, accruals and other liabilities are deemed to be reasonable estimates of their fair values. Carrying Value Fair Value Sept. 30, 2009 Dec. 31, 2008 Sept. 30, 2009 Dec. 31, 2008 Insurance and other: Investments in fixed maturity securities $ 32,586 $ 27,115 $ 32,586 $ 27,115 Investments in equity securities 55,084 49,073 55,084 49,073 Other investments 31,927 21,535 32,416 20,759 Notes payable and other borrowings 3,815 4,349 3,824 4,300 Finance and financial products: Investments in fixed maturity securities 4,765 4,517 4,765 4,517 Investments in equity securities (1) 469 469 Derivative contract assets (1) 222 208 222 208 Loans and finance receivables 13,514 13,942 13,549 14,016 Notes payable and other borrowings 14,642 13,388 15,366 13,820 Derivative contract liabilities 10,352 14,612 10,352 14,612 Utilities and energy: Investments in equity securities (1) 1,854 1,854 Derivative contract assets (1) 199 324 199 324 Notes payable and other borrowings 19,564 19,145 21,360 19,144 Derivative contract liabilities (2) 533 729 533 729 (1) Included in Other assets (2) Included in Accounts payable, accruals and other liabilities Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. Fair value measurements assume the asset or liability is exchanged in an orderly manner; the exchange is in the principal market for that asset or liability (or in the most advantageous market when no principal market exists); and the market participants are independent, knowledgeable, able and willing to transact an exchange. Fair values for substantially all of Berkshires financial instruments were measured using market or income approaches. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that could be realized in an actual current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value. A hierarchy for measuring fair value consists of Levels 1 through 3. Level 1 Inputs represent unadjusted quoted prices for identical assets or liabilities exchanged in active markets. Substantially all of Berkshires equity investments are traded on an exchange in active markets and fai

Receivables

Receivables
	9 Months Ended Sep. 30, 2009 USD / shares
Receivables [Abstract]
Note 11. Receivables	Note 11.Receivables Receivables of insurance and other businesses are comprised of the following (in millions). September 30, 2009 December31, 2008 Insurance premiums receivable $ 5,933 $ 4,961 Reinsurance recoverables 3,177 3,235 Trade and other receivables 7,400 7,141 Allowances for uncollectible accounts (463 ) (412 ) $ 16,047 $ 14,925 Loans and finance receivables of finance and financial products businesses are comprised of the following (in millions). September 30, 2009 December31, 2008 Consumer installment loans and finance receivables $ 12,847 $ 13,190 Commercial loans and finance receivables 997 1,050 Allowances for uncollectible loans (330 ) (298 ) $ 13,514 $ 13,942

Property, plant and equipment

Property, plant and equipment
	9 Months Ended Sep. 30, 2009 USD / shares
Property, plant and equipment [Abstract]
Note 12. Property, plant and equipment	Note 12.Property, plant and equipment Property, plant and equipment of insurance and other businesses is comprised of the following (inmillions). Rangesof estimatedusefullife September 30, 2009 December31, 2008 Land $ 753 $ 751 Buildings and improvements 340years 4,559 4,351 Machinery and equipment 325years 11,478 11,009 Furniture, fixtures and other 320years 1,726 1,856 Assets held for lease 1230years 5,658 5,311 24,174 23,278 Accumulated depreciation (7,607 ) (6,575 ) $ 16,567 $ 16,703 Property, plant and equipment of utilities and energy businesses is comprised of the following (in millions). Rangesof estimatedusefullife September 30, 2009 December31, 2008 Utility generation, distribution and transmission system 585years $ 35,084 $ 32,795 Interstate pipeline assets 367 years 5,710 5,649 Independent power plants and other assets 330 years 1,284 1,228 Construction in progress 2,003 1,668 44,081 41,340 Accumulated depreciation (13,649 ) (12,886 ) $ 30,432 $ 28,454 The utility generation, distribution and transmission system and interstate pipeline assets are the regulated assets of public utility and natural gas pipeline subsidiaries. At September 30, 2009 and December 31, 2008, accumulated depreciation related to regulated assets was $13.2 billion and $12.5 billion, respectively. Substantially all of the construction in progress related to the construction of regulated assets.

Inventories

Inventories
	9 Months Ended Sep. 30, 2009 USD / shares
Inventories [Abstract]
Note 13. Inventories	Note 13.Inventories Inventories are comprised of the following (in millions). September 30, 2009 December31, 2008 Raw materials $ 956 $ 1,161 Work in process and other 582 607 Finished manufactured goods 2,072 2,580 Purchased goods 2,441 3,152 $ 6,051 $ 7,500

Income taxes

Income taxes
	9 Months Ended Sep. 30, 2009 USD / shares
Income taxes [Abstract]
Note 14. Income taxes	Note 14.Income taxes The liability for income taxes as of September 30, 2009 and December 31, 2008 is as follows (in millions). September 30, 2009 December31, 2008 Payable currently $ (769 ) $ 161 Deferred 16,682 9,316 Other 990 803 $ 16,903 $ 10,280

Notes payable and other borrowi

Notes payable and other borrowings
	9 Months Ended Sep. 30, 2009 USD / shares
Notes payable and other borrowings [Abstract]
Note 15. Notes payable and other borrowings	Note 15.Notes payable and other borrowings Notes payable and other borrowings of Berkshire and its subsidiaries are summarized below (in millions). September 30, 2009 December31, 2008 Insurance and other: Issued or guaranteed by Berkshire due 2009-2035 $ 2,066 $ 2,275 Issued by subsidiaries and not guaranteed by Berkshire due 2009-2041 1,749 2,074 $ 3,815 $ 4,349 Debt issued or guaranteed by Berkshire includes short term borrowings of $1.8 billion as of September 30, 2009 and December31, 2008. September 30, 2009 December31, 2008 Utilities and energy: Issued by MidAmerican Energy Holdings Company (MidAmerican) and its subsidiaries and not guaranteed by Berkshire: MidAmerican senior debt due 2012-2037 $ 5,371 $ 5,121 Subsidiary and other debt due 2009-2039 14,193 14,024 $ 19,564 $ 19,145 MidAmerican senior debt is unsecured and has a weighted average interest rate of about 6.2% as of September 30, 2009. Subsidiary debt of utilities and energy businesses represents amounts issued by subsidiaries of MidAmerican pursuant to separate financing agreements and has a weighted average interest rate of about 6% as of September 30, 2009. All or substantially all of the assets of certain MidAmerican subsidiaries are or may be pledged or encumbered to support or otherwise secure the debt. These borrowing arrangements generally contain various covenants including, but not limited to, leverage ratios, interest coverage ratios and debt service coverage ratios. As of September 30, 2009, MidAmerican and its subsidiaries were in compliance with all applicable covenants. Subsidiary debt with an aggregate par amount of $1.0 billion was issued in the first quarter of 2009. These obligations mature in 2019 and 2039 and have interest rates of 5.5% and 6.0%. MidAmerican issued $250 million par amount 3.15% senior notes in the third quarter of 2009 that mature in 2012. September 30, 2009 December31, 2008 Finance and financial products: Issued by Berkshire Hathaway Finance Corporation (BHFC) and guaranteed by Berkshire $ 12,050 $ 10,778 Issued by other subsidiaries and guaranteed by Berkshire due 2009-2027 783 706 Issued by other subsidiaries and not guaranteed by Berkshire due 2009-2036 1,809 1,904 $ 14,642 $ 13,388 Debt issued by BHFC matures between 2010 and 2018 and has a weighted average interest rate of approximately 4.3% as of September 30, 2009. In 2009, BHFC issued $1 billion par amount of 4% notes due in 2012 and $250 million of 5.4% notes due in 2018.

Shareholders' equity

Shareholders' equity
	9 Months Ended Sep. 30, 2009 USD / shares
Shareholders' equity [Abstract]
Note 16. Shareholders' equity	Note 16.Shareholders equity The following table summarizes Berkshires ClassA and B common stock activity during the first nine months of 2009. ClassAcommonstock (1,650,000sharesauthorized) Issued and Outstanding ClassBcommonstock (55,000,000sharesauthorized) Issued and Outstanding Balance at December31, 2008 1,059,001 14,706,996 Issuance of Class B common stock and conversions of Class A common stock to Class B (1,951 ) 133,341 Balance at September 30, 2009 1,057,050 14,840,337 Each share of ClassA common stock ($5 par per share) is convertible, at the option of the holder, into thirty shares of Class B common stock ($0.1667 par per share). Class B common stock is not convertible into ClassA common stock. Class B common stock has economic rights equal to one-thirtieth (1/30)of the economic rights of ClassA common stock. Accordingly, on an equivalent ClassA common stock basis, there are 1,551,728 shares outstanding at September 30, 2009 and 1,549,234 shares outstanding at December31, 2008. Each ClassA common share is entitled to one vote per share. Each Class B common share possesses the voting rights of one-two-hundredth (1/200)of the voting rights of a ClassA share. ClassA and Class B common shares vote together as a single class. In March 2009, Berkshire issued 74,574 shares of Class B common stock to acquire certain noncontrolling shareholder interests in MidAmerican. Changes in shareholders equity for the first nine months of 2008 and 2009 are shown in the table below (in millions). Berkshire Hathaway shareholders equity Commonstock and capital in excess of par value Accumulated other comprehensive income Retained earnings Total Non- controlling interests Balance at December31, 2007 $ 26,960 $ 21,620 $ 72,153 $ 120,733 $ 2,668 Net earnings 4,877 4,877 404 Other comprehensive income, net (5,636 ) (5,636 ) (71 ) Issuance of common stock and other transactions 181 181 Changes in noncontrolling interests: Business acquisitions 1,570 Interests acquired and other transactions (222 ) Balance at September 30, 2008 $ 27,141 $ 15,984 $ 77,030 $ 120,155 $ 4,349 Balance at December31, 2008 $ 27,141 $ 3,954 $ 78,172 $ 109,267 $ 4,440 Net earnings 4,999 4,999 288 Other comprehensive income, net 11,753 11,753 183 Issuance of common stock and other transactions 172 172 Changes in noncontrolling interests: Interests acquired and other transactions (227 ) 109 (118 ) (302 ) Balance at September 30, 2009 $ 27,086 $ 15,816 $ 83,171 $ 126,073 $ 4,609 Berkshires comprehensive income for the third quarter and first nine month

Business segment data

Business segment data
	9 Months Ended Sep. 30, 2009 USD / shares
Business segment data [Abstract]
Note 17. Business segment data	Note 17.Business segment data Berkshires consolidated segment data for the third quarter and first nine months of 2009 and 2008 is as follows (in millions). Revenues Third Quarter First Nine Months 2009 2008 2009 2008 Operating Businesses: Insurance group: Premiums earned: GEICO $ 3,448 $ 3,150 $ 10,103 $ 9,268 General Re 1,476 1,458 4,281 4,650 Berkshire Hathaway Reinsurance Group 1,229 1,383 5,526 3,523 Berkshire Hathaway Primary Group 442 474 1,353 1,464 Investment income 1,362 1,080 4,109 3,400 Total insurance group 7,957 7,545 25,372 22,305 Finance and financial products 1,143 1,258 3,251 3,719 Marmon 1,306 1,878 3,846 4,044 McLane 8,170 7,634 23,027 21,892 MidAmerican 2,812 3,298 8,416 9,727 Shaw 1,056 1,357 3,088 3,918 Other businesses 5,423 6,521 15,422 19,898 27,867 29,491 82,422 85,503 Reconciliation of segments to consolidated amount: Investment and derivative gains/losses * 1,817 (1,557 ) (836 ) (2,148 ) Eliminations and other 220 (8 ) 709 (161 ) $ 29,904 $ 27,926 $ 82,295 $ 83,194 Earningsbefore income taxes and equitymethodearnings Third Quarter First Nine Months 2009 2008 2009 2008 Operating Businesses: Insurance group: Underwriting: GEICO $ 200 $ 246 $ 459 $ 730 General Re 186 54 446 198 Berkshire Hathaway Reinsurance Group 167 (166 ) 79 (58 ) Berkshire Hathaway Primary Group 7 (8 ) 40 98 Net investment income 1,348 1,074 4,068 3,367 Total insurance group 1,908 1,200 5,092 4,335 Finance and financial products 142 163 404 658 Marmon 194 247 526 536 McLane 64 68 273 209 MidAmerican 441 526 1,146 1,371 Shaw 51 49 136 182 Other businesses 299 749 621 2,316 3,099 3,002 8,198 9,607 Reconciliation of segments to consolidated amount: Investment and derivative gains/losses * 1,817 (1,557 ) (836 ) (2,148 ) Interest expense, excluding interest allocated to operating businesses (11 ) (9 ) (34 ) (26 ) Eliminations and other (66 ) 66 (241 ) (7 ) $ 4,839 $ 1,502 $ 7,087 $ 7,426 * Includes other-than-temporary impairment losses on investments.

Contingencies

Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Contingencies [Abstract]
Note 18. Contingencies	Note 18.Contingencies Berkshire and its subsidiaries are parties in a variety of legal actions arising out of the normal course of business. In particular, such legal actions affect Berkshires insurance and reinsurance businesses. Such litigation generally seeks to establish liability directly through insurance contracts or indirectly through reinsurance contracts issued by Berkshire subsidiaries. Plaintiffs occasionally seek punitive or exemplary damages. Berkshire does not believe that such normal and routine litigation will have a material effect on its financial condition or results of operations. 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 in substantial amounts. a) Governmental Investigations Berkshire, General Re Corporation (General Re) and certain of Berkshires insurance subsidiaries, including General Reinsurance Corporation (General Reinsurance) and National Indemnity Company (NICO) have been continuing to cooperate fully with the U.S. Securities and Exchange Commission (SEC), the U.S. Department of Justice, the U.S. Attorney for the Eastern District of Virginia and the New York State Attorney General (NYAG) in their ongoing investigations of non-traditional products. General Re originally received subpoenas from the SEC and NYAG in January 2005. Berkshire, General Re, General Reinsurance and NICO have been providing information to the government relating to transactions between General Reinsurance or NICO (or their respective subsidiaries or affiliates) and other insurers in response to the January 2005 subpoenas and related requests and, in the case of General Reinsurance (or its subsidiaries or affiliates), in response to subpoenas from other U.S. Attorneys conducting investigations relating to certain of these transactions. In particular, Berkshire and General Re have been responding to requests from the government for information relating to certain transactions that may have been accounted for incorrectly by counterparties of General Reinsurance (or its subsidiaries or affiliates). The government has interviewed a number of current and former officers and employees of General Re and General Reinsurance as well as Berkshires Chairman and CEO, Warren E. Buffett, in connection with these investigations. In one case, a transaction initially effected with American International Group (AIG) in late 2000 (the AIG Transaction), AIG has corrected its prior accounting for the transaction on the grounds, as stated in AIGs 2004 10-K, that the transaction was done to accomplish a desired accounting result and did not entail sufficient qualifying risk transfer to support reinsurance accounting. General Reinsurance has been named in related civil actions brought against AIG. As part of their ongoing investigations, governmental authorities have also inquired about the accounting by certain of Berkshires insurance subsidiaries for certain assumed and ceded finite reinsurance transactions. In June 2005, John Houldsworth, the former Chief Executive Officer of Cologne Reinsurance Company (Dublin) Li

Supplemental cash flow informat

Supplemental cash flow information
	9 Months Ended Sep. 30, 2009 USD / shares
Supplemental cash flow information [Abstract]
Note 19. Supplemental cash flow information	Note 19.Supplemental cash flow information A summary of supplemental cash flow information for the first nine months of 2009 and 2008 is presented in the following table (in millions). First Nine Months 2009 2008 Cash paid during the period for: Income taxes $ 1,861 $ 2,921 Interest of finance and financial products businesses 469 412 Interest of utilities and energy businesses 850 872 Interest of insurance and other businesses 99 127 Non-cash investing and financing activity: Liabilities assumed in connection with acquisitions of businesses 240 4,127

Subsequent event

Subsequent event
	9 Months Ended Sep. 30, 2009 USD / shares
Subsequent event [Abstract]
Note 20. Subsequent event	Note 20.Subsequent event On November 3, 2009, Berkshire Hathaway Inc. announced that it had entered into a definitive agreement to acquire for $100 per share the remaining 77.4% of BNSFs outstanding shares not currently owned by Berkshire.Based upon the outstanding shares of BNSF not currently owned by Berkshire, the value of the aggregate consideration to acquire the remaining BNSF shares is approximately $26.4 billion of which approximately 60% will be paid in cash and 40% in Berkshire Class A and Class B Common Stock.Berkshire expects to fund about 50% of the total cash consideration of approximately $16 billion with internally generated cash and the remainder with borrowings expected to be repaid over a three year period.The acquisition requires approval by holders of two-thirds of BNSFs outstanding shares not currently held by Berkshire and is subject to customary closing conditions.The closing is expected to occur in the first quarter of 2010. On November 3, 2009, Berkshire also announced that its Board of Directors approved a 50-for-1 split of its Class B Common Stock.The stock split is subject to the approval of Berkshires shareholders who must approve an amendment to Berkshires certificate of incorporation to increase Berkshires total number of authorized shares of common stock.Berkshires Class A Common Stock is not being split.