Berkshire Hathaway (BRK-B) 10-Q 7 May 10 2010 Q1 Quarterly report Financial data

Document Information

Document Information
	3 Months Ended Mar. 31, 2010
Document information
Document type	10-Q
Amendment flag	false
Document period end date	2010-03-31
Document fiscal year focus	2,010
Document fiscal period focus	Q1

Entity Information

Entity Information (USD $)
In Millions, except Share data	3 Months Ended Mar. 31, 2010	Apr. 30, 2010	Jun. 30, 2009
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			$102,388
Entity Listing items
Entity common stock, shares outstanding		0
Class A
Entity Listing items
Entity common stock, shares outstanding		1,001,313
Class B
Entity Listing items
Entity common stock, shares outstanding		968,746,390

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Mar. 31, 2010	Dec. 31, 2009
ASSETS
Cash and cash equivalents	$25,670	$30,558
Total assets	356,320	297,119
LIABILITIES
Income taxes, principally deferred	34,603	19,225
Total liabilities	204,396	161,334
SHAREHOLDERS' EQUITY
Common stock	8	8
Capital in excess of par value	38,034	27,074
Accumulated other comprehensive income	19,307	17,793
Retained earnings	89,860	86,227
Berkshire Hathaway shareholders' equity	147,209	131,102
Noncontrolling interests	4,715	4,683
Total shareholders' equity	151,924	135,785
Total liabilities and shareholders' equity	356,320	297,119
Insurance and Other [Member]
ASSETS
Cash and cash equivalents	22,720	28,223
Investments in fixed maturity securities	35,543	35,729
Investments in equity securities	58,012	56,562
Other investments	22,990	29,440
Receivables	17,799	14,792
Inventories	6,451	6,147
Property, plant and equipment	15,566	15,720
Goodwill	27,610	27,614
Other	13,005	13,070
Total assets	219,696	227,297
LIABILITIES
Losses and loss adjustment expenses	59,084	59,416
Unearned premiums	9,164	7,925
Life, annuity and health insurance benefits	6,985	5,228
Accounts payable, accruals and other liabilities	14,998	15,530
Notes payable and other borrowings	12,339	4,561
Total liabilities	102,570	92,660
Railroad, Utilities and Energy [Member]
ASSETS
Cash and cash equivalents	1,756	429
Property, plant and equipment	74,948	30,936
Goodwill	20,080	5,334
Other	14,208	8,072
Total assets	110,992	44,771
LIABILITIES
Accounts payable, accruals and other liabilities	12,386	5,895
Notes payable and other borrowings	30,599	19,579
Total liabilities	42,985	25,474
Finance and Financial Products [Member]
ASSETS
Cash and cash equivalents	1,194	1,906
Investments in fixed maturity securities	1,277	1,402
Other investments	3,153	3,160
Loans and finance receivables	15,423	13,989
Goodwill	1,024	1,024
Other	3,561	3,570
Total assets	25,632	25,051
LIABILITIES
Accounts payable, accruals and other liabilities	882	937
Derivative contract liabilities	8,667	9,269
Notes payable and other borrowings	14,689	13,769
Total liabilities	$24,238	$23,975

Consolidated Statements of Earn

Consolidated Statements of Earnings (USD $)
In Millions, except Share data	3 Months Ended Mar. 31, 2010		3 Months Ended Mar. 31, 2009
Revenues:
Total revenues	$32,037		$22,784
Costs and expenses:
Total costs and expenses	26,939		25,327
Earnings (loss) before income taxes and equity method earnings	5,098		(2,543)
Income tax expense/benefit	1,336		(1,014)
Earnings from equity method investments	50		83
Net earnings (loss)	3,812		(1,446)
Less: Earnings attributable to noncontrolling interests	179		88
Net earnings (loss) attributable to Berkshire Hathaway	3,633		(1,534)
Average common shares outstanding [1]	1,599,167	[1]	1,549,483	[1]
Class A
Net earnings per share attributable to Berkshire Hathaway shareholders:
Net earnings (loss) per share attributable to Berkshire Hathaway shareholders [1]	$2,272	[1]	($990)	[1]
Insurance and Other [Member]
Revenues:
Insurance premiums earned	7,426		8,183
Sales and service revenues	15,531		14,310
Interest, dividend and other investment income	1,295		1,374
Investment gains/losses	1,315		(370)
Other-than-temporary impairment losses on investments			(3,096)
Total revenues	25,567		20,401
Costs and expenses:
Insurance losses and loss adjustment expenses	4,186		6,014
Life, annuity and health insurance benefits	1,492		508
Insurance underwriting expenses	1,403		1,348
Cost of sales and services	12,906		11,958
Selling, general and administrative expenses	1,839		1,963
Interest expense	67		48
Total costs and expenses	21,893		21,839
Railroad, Utilities and Energy [Member]
Revenues:
Operating revenues	5,010		2,969
Other	40		(20)
Total revenues	5,050		2,949
Costs and expenses:
Cost of sales and operating expenses	3,832		2,355
Interest expense	347		291
Total costs and expenses	4,179		2,646
Finance and Financial Products [Member]
Revenues:
Interest, dividend and other investment income	401		362
Investment gains/losses	3
Derivative gains/losses	411		(1,517)
Other	605		589
Total revenues	1,420		(566)
Costs and expenses:
Interest expense	179		149
Other	688		693
Total costs and expenses	$867		$842
[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 (loss) per common share attributable to Berkshire Hathaway shown above represents net earnings (loss) per equivalent Class A common share. Net earnings (loss) per Class B common share is equal to one-fifteen-hundredth (1/1,500) of such amount.

1_Consolidated Statements of Ea

Consolidated Statements of Earnings (Parenthetical) (Class B)
	3 Months Ended Mar. 31, 2010 USD / shares
Ratio of earnings per Class B share to earnings per Class A share	0.000667

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from operating activities:
Net earnings (loss)	$3,812	($1,446)
Adjustments to reconcile net earnings to operating cash flows:
Investment (gains) losses and other-than-temporary impairment losses	(1,318)	3,466
Depreciation	915	758
Other	98	(130)
Changes in operating assets and liabilities before business acquisitions:
Losses and loss adjustment expenses	153	2,225
Deferred charges reinsurance assumed	117	(55)
Unearned premiums	1,274	1,311
Receivables and originated loans	(3,013)	(1,020)
Derivative contract assets and liabilities	(632)	854
Income taxes	583	(957)
Other assets and liabilities	1,324	(364)
Net cash flows from operating activities	3,313	4,642
Cash flows from investing activities:
Purchases of fixed maturity securities	(1,951)	(4,897)
Purchases of equity securities	(1,644)	(624)
Purchases of other investments		(3,098)
Sales of fixed maturity securities	1,109	1,655
Redemptions and maturities of fixed maturity securities	1,031	1,614
Sales of equity securities	2,283	739
Purchases of loans and finance receivables	(82)	(110)
Principal collections on loans and finance receivables	174	174
Acquisitions of businesses, net of cash acquired	(14,911)	(530)
Purchases of property, plant and equipment	(1,170)	(1,373)
Other	(210)	1,023
Net cash flows from investing activities	(15,371)	(5,427)
Cash flows from financing activities:
Change in short term borrowings, net	(62)	1
Acquisitions of noncontrolling interests and other	(85)	(21)
Net cash flows from financing activities	7,194	925
Effects of foreign currency exchange rate changes	(24)	(128)
Increase (decrease) in cash and cash equivalents	(4,888)	12
Cash and cash equivalents:
Cash and cash equivalents at beginning of year	30,558	25,539
Cash and cash equivalents at end of first quarter	25,670	25,551
Insurance and Other [Member]
Cash flows from financing activities:
Proceeds from borrowings	8,036	25
Repayments of borrowings	(90)	(230)
Cash and cash equivalents:
Cash and cash equivalents at beginning of year	28,223	24,356
Cash and cash equivalents at end of first quarter	22,720	22,768
Railroad, Utilities and Energy [Member]
Cash flows from financing activities:
Proceeds from borrowings		992
Repayments of borrowings	(54)	(195)
Cash and cash equivalents:
Cash and cash equivalents at beginning of year	429	280
Cash and cash equivalents at end of first quarter	1,756	1,072
Finance and Financial Products [Member]
Cash flows from financing activities:
Proceeds from borrowings	1,037	467
Repayments of borrowings	(1,588)	(114)
Cash and cash equivalents:
Cash and cash equivalents at beginning of year	1,906	903
Cash and cash equivalents at end of first quarter	$1,194	$1,711

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity (USD $)
In Millions	Common stock and capital in excess of par value	Accumulated other comprehensive income	Retained earnings	Total Berkshire Hathaway shareholders' equity	Non-controlling interests	Total
Balance at Dec. 31, 2008	$27,141	$3,954	$78,172	$109,267	$4,440
Net earnings (loss)			(1,534)	(1,534)	88	(1,446)
Other comprehensive income, net		(4,993)		(4,993)	(94)
Issuance of common stock and other transactions	176			176
Changes in noncontrolling interests:
Interests acquired and other transactions	(227)	109		(118)	(313)
Balance at Mar. 31, 2009	27,090	(930)	76,638	102,798	4,121
Balance at Dec. 31, 2009	27,082	17,793	86,227	131,102	4,683	135,785
Net earnings (loss)			3,633	3,633	179	3,812
Other comprehensive income, net		1,513		1,513	20
Issuance of common stock and other transactions	10,974			10,974
Changes in noncontrolling interests:
Interests acquired and other transactions	(14)	1		(13)	(167)
Balance at Mar. 31, 2010	$38,042	$19,307	$89,860	$147,209	$4,715	$151,924

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Comprehensive income attributable to Berkshire:
Net earnings (loss)	$3,633	($1,534)
Other comprehensive income:
Net change in unrealized appreciation of investments	3,130	(10,463)
Applicable income taxes	(1,110)	3,660
Reclassification of investment appreciation in earnings	(335)	3,429
Applicable income taxes	117	(1,200)
Foreign currency translation	(435)	(405)
Applicable income taxes		55
Prior service cost and actuarial gains/losses of defined benefit plans	51	15
Applicable income taxes	(13)	(4)
Other	108	(80)
Other comprehensive income, net	1,513	(4,993)
Comprehensive income attributable to Berkshire	5,146	(6,527)
Comprehensive income of noncontrolling interests	$199	($6)

General

General
	3 Months Ended Mar. 31, 2010
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. In these notes the terms us, we, or our refer to Berkshire and its consolidated subsidiaries.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. Our significant accounting policies and practices were presented as Note 1 to the Consolidated Financial Statements included in the Annual Report. Certain immaterial amounts in 2009 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, our 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 impairment losses 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 2010
	3 Months Ended Mar. 31, 2010
Accounting pronouncements adopted in 2010 [Abstract]
Note 2. Accounting pronouncements adopted in 2010	Note 2.Accounting pronouncements adopted in 2010 In 2009, the FASB issued Accounting Standards Update (ASU) 2009-16 which eliminated the concept of a qualifying special-purpose entity (QSPE) and the exemption of QSPEs from previous consolidation guidance. ASU 2009-16 also modified the criteria for derecognizing financial assets by transferors. In 2009, the FASB also issued ASU 2009-17, which amended the standards related to consolidation of variable interest entities. ASU 2009-17 included new criteria for determining the primary beneficiary of variable interest entities and increased the frequency in which reassessments must be made to determine the primary beneficiary of variable interest entities. ASU 2009-16 and 2009-17 became effective for fiscal years beginning after November 15, 2009. See Note 14 for a description of the effect on our financial statements of adopting ASU 2009-16 and ASU 2009-17. In January 2010, the FASB issued ASU 2010-06, Improving Disclosures About Fair Value Measurements. Effective January 1, 2010, ASU 2010-06 requires the separate disclosure of significant transfers into and out of the Level 1 and Level 2 categories and the reasons for such transfers, and also requires fair value measurement disclosures for each class of assets and liabilities as well as disclosures about valuation techniques and inputs used for recurring and nonrecurring Level 2 and Level 3 fair value measurements. Effective in fiscal years beginning after December 31, 2010, ASU 2010-06 also requires Level 3 disclosure of purchases, sales, issuances and settlements activity on a gross rather than a net basis. We do not anticipate that the remaining disclosures under ASU 2010-06 will have a material impact on our Consolidated Financial Statements.

Acquisition of Burlington North

Acquisition of Burlington Northern Santa Fe Corporation
	3 Months Ended Mar. 31, 2010
Acquisition of Burlington Northern Santa Fe Corporation [Abstract]
Note 3. Acquisition of Burlington Northern Santa Fe Corporation	Note 3.Acquisition of Burlington Northern Santa Fe Corporation Our long-held acquisition strategy is to purchase businesses with consistent earnings power, good returns on equity and able and honest management at sensible prices. On February 12, 2010, we acquired all of the outstanding common stock of the Burlington Northern Santa Fe Corporation that we did not already own (about 264.5 million shares or 77.5%) for aggregate consideration of $26.5 billion that consisted of cash of approximately $15.9 billion with the remainder in Berkshire common stock (80,931 Class A shares and 20,976,621 Class B shares). Approximately 50% of the cash component was funded with existing cash balances and the remaining 50% was funded with proceeds from new debt issued by Berkshire. The acquisition was completed through the merger of a wholly-owned merger subsidiary (a Delaware limited liability company) and Burlington Northern Santa Fe Corporation. The merger subsidiary was the surviving entity and was renamed Burlington Northern Santa Fe, LLC (BNSF). BNSF is based in Fort Worth, Texas, and through BNSF Railway Company operates one of the largest railroad systems in North America with approximately 32,000 route miles of track in 28 states and two Canadian provinces. Prior to February 12, 2010, we owned 76.8 million shares of BNSF (22.5% of the outstanding shares), which were acquired between August 2006 and January 2009. We accounted for those shares pursuant to the equity method and as of February 12, 2010, our investment had a carrying value of $6.6 billion. We are accounting for the acquisition of BNSF pursuant to the acquisition method under Accounting Standards Codification Section 805 Business Combinations (ASC 805). Upon completion of the acquisition of the remaining BNSF shares, we were required under ASC 805 to re-measure our previously owned investment in BNSF at fair value as of the acquisition date. In the first quarter of 2010, we recognized a one-time holding gain of approximately $1.0 billion for the difference between the fair value of the BNSF shares and our carrying value under the equity method. A preliminary allocation of the aggregate $34.5 billion purchase price (including the fair value of the previously owned shares of BNSF and the value of certain BNSF outstanding equity awards that were converted into Berkshire Class B equity awards on the acquisition date) to BNSFs assets and liabilities is summarized below (in millions): Assets: Liabilities and Net assets acquired: Cash and cash equivalents $ 971 Accounts payable and other liabilities $ 6,623 Property, plant and equipment 43,987 Notes payable and other borrowings 11,142 Goodwill 14,803 Income taxes, principally deferred 13,203 Other 5,702 30,968 $ 65,463 Net assets acquired 34,495 $ 65,463 BNSFs financial statements are included in our consolidated financial statements beginning as of February 12, 2010. The following table sets forth certain unaudited pro forma consolidated earnings data for 2010 and 2009, as if the BNSF acquisition was consummated on

Investments in fixed maturity s

Investments in fixed maturity securities
	3 Months Ended Mar. 31, 2010
Investments in fixed maturity securities [Abstract]
Note 4. Investments in fixed maturity securities	Note 4.Investments in fixed maturity securities Investments in securities with fixed maturities as of March 31, 2010 and December 31, 2009 are summarized below (in millions). Amortized Cost Unrealized Gains Unrealized Losses * Fair Value March 31, 2010 U.S. Treasury, U.S. government corporations and agencies $ 2,365 $ 48 $ $ 2,413 States, municipalities and political subdivisions 3,605 262 3,867 Foreign governments 11,231 395 (42 ) 11,584 Corporate bonds 13,264 2,419 (617 ) 15,066 Mortgage-backed securities 3,592 318 (20 ) 3,890 $ 34,057 $ 3,442 $ (679 ) $ 36,820 Insurance and other $ 32,874 $ 3,348 $ (679 ) $ 35,543 Finance and financial products 1,183 94 1,277 $ 34,057 $ 3,442 $ (679 ) $ 36,820 December31, 2009 U.S. Treasury, U.S. government corporations and agencies $ 2,362 $ 46 $ (1 ) $ 2,407 States, municipalities and political subdivisions 3,689 275 (1 ) 3,963 Foreign governments 11,518 368 (42 ) 11,844 Corporate bonds 13,094 2,080 (502 ) 14,672 Mortgage-backed securities 3,961 310 (26 ) 4,245 $ 34,624 $ 3,079 $ (572 ) $ 37,131 Insurance and other $ 33,317 $ 2,984 $ (572 ) $ 35,729 Finance and financial products 1,307 95 1,402 $ 34,624 $ 3,079 $ (572 ) $ 37,131 * Includes $625 million at March 31, 2010 and $471 million at December31, 2009, 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 March 31, 2010 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. Dueinone yearorless Dueafterone year through five years Dueafterfive yearsthrough ten years Dueafter ten years Mortgage-backed securities Total Amortized cost $ 5,603 $ 14,497 $ 7,106 $ 3,259 $ 3,592 $ 34,057 Fair value 5,929 15,516 7,655 3,830 3,890 36,820

Investments in equity securitie

Investments in equity securities
	3 Months Ended Mar. 31, 2010
Investments in equity securities [Abstract]
Note 5. Investments in equity securities	Note 5.Investments in equity securities Investments in equity securities as of March 31, 2010 and December31, 2009 are summarized below (in millions). CostBasis Unrealized Gains Unrealized Losses Fair Value March 31, 2010 American Express Company $ 1,287 $ 4,968 $ $ 6,255 The Coca-Cola Company 1,299 9,701 11,000 The Procter Gamble Company 4,460 268 4,728 Wells Fargo Company 7,394 3,406 (399 ) 10,401 Other 22,095 7,507 (1,213 ) 28,389 $ 36,535 $ 25,850 $ (1,612 ) $ 60,773 Insurance and other $ 35,866 $ 23,757 $ (1,611 ) $ 58,012 Railroad, utilities and energy * 232 2,009 2,241 Finance and financial products * 437 84 (1 ) 520 $ 36,535 $ 25,850 $ (1,612 ) $ 60,773 December31, 2009 American Express Company $ 1,287 $ 4,856 $ $ 6,143 The Coca-Cola Company 1,299 10,101 11,400 The Procter Gamble Company 4,962 78 5,040 Wells Fargo Company 7,394 2,721 (1,094 ) 9,021 Other 22,265 7,118 (1,953 ) 27,430 $ 37,207 $ 24,874 $ (3,047 ) $ 59,034 Insurance and other $ 36,538 $ 23,070 $ (3,046 ) $ 56,562 Railroad, utilities and energy * 232 1,754 1,986 Finance and financial products * 437 50 (1 ) 486 $ 37,207 $ 24,874 $ (3,047 ) $ 59,034 * Included in Other assets. Unrealized losses of other equity investments at March 31, 2010, included $1,198 million related to securities that have been in an unrealized loss position for 12 months or more. Approximately 94% of these losses at March 31, 2010 were concentrated in four issuers. In addition, although our investment in Wells Fargo Company is in a net unrealized gain position of $3,007 million, certain of the shares with aggregate gross unrealized losses of $399 million have been in an unrealized loss position for greater than 12 months. We use no bright-line test in determining whether impairments are temporary or other than temporary. We consider 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 our ability and intent to hold the investment until the price recovers. In our judgment, the future earnings potential and underlying business economics of these companies are favorable and we possess 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 our ability and intent to hol

Other Investments

Other Investments
	3 Months Ended Mar. 31, 2010
Other Investments [Abstract]
Note 6. Other Investments	Note 6.Other Investments A summary of other investments follows (in millions). Cost Unrealized Gains/Losses Fair Value Carrying Value March 31, 2010 Fixed maturity securities $ 5,400 $ 986 $ 6,386 $ 5,400 Equity securities 15,689 5,054 20,743 20,743 $ 21,089 $ 6,040 $ 27,129 $ 26,143 Insurance and other $ 18,347 $ 5,618 $ 23,965 $ 22,990 Finance and financial products 2,742 422 3,164 3,153 $ 21,089 $ 6,040 $ 27,129 $ 26,143 December 31, 2009 Fixed maturity and equity securities $ 21,089 $ 5,879 $ 26,968 $ 26,014 Equity method 5,851 1,721 7,572 6,586 $ 26,940 $ 7,600 $ 34,540 $ 32,600 Insurance and other $ 24,198 $ 7,172 $ 31,370 $ 29,440 Finance and financial products 2,742 428 3,170 3,160 $ 26,940 $ 7,600 $ 34,540 $ 32,600 Fixed maturity and equity investments in the preceding table include our investments in The Goldman Sachs Group, Inc. (GS) and The General Electric Company (GE), that we made in 2008 and investments in Swiss Reinsurance Company Ltd. (Swiss Re) and The Dow Chemical Company (Dow) that we made in 2009. In addition, fixed maturity and equity investments include investments in Wm. Wrigley Jr. Company (Wrigley) that we made in both 2008 and 2009. Additional information regarding these investments follows. We own 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). We also own 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 by GE beginning in October 2011 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). We own $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 2008 in connection with Mars, Incorporateds acquisition of Wrigley. During 2009, we also acquired $1.0 billion par amount of Wrigley senior notes due in 2013 and 2014. The Wrigley subordinated and senior notes are classified as held-to-maturity and accordingly we are carrying these investments at cost. On March23, 2009, we acq

Investment gains and losses

Investment gains and losses
	3 Months Ended Mar. 31, 2010
Investment gains losses [Abstract]
Note 7. Investment gains/losses	Note 7.Investment gains/losses Investment gains/losses are summarized below (in millions). First Quarter 2010 2009 Fixed maturity securities Gross gains from sales and other disposals $ 298 $ 150 Gross losses from sales and other disposals (3 ) (9 ) Equity securities Gross gains from sales and other disposals 212 34 Gross losses from sales (172 ) (508 ) Other* 983 (37 ) $ 1,318 $ (370 ) * In 2010 includes a one-time holding gain of $979 million related to the BNSF acquisition.See Note 3. Net investment gains/losses are reflected in the Consolidated Statements of Earnings as follows. Insurance and other $ 1,315 $ (370 ) Finance and financial products 3 $ 1,318 $ (370 )

Receivables

Receivables
	3 Months Ended Mar. 31, 2010
Receivables [Abstract]
Note 8. Receivables	Note 8.Receivables Receivables of insurance and other businesses are comprised of the following (in millions). March 31, December 31, 2010 2009 Insurance premiums receivable $ 6,952 $ 5,295 Reinsurance recoverables 3,543 2,922 Trade and other receivables 7,700 6,977 Allowances for uncollectible accounts (396 ) (402 ) $ 17,799 $ 14,792 Loans and finance receivables of finance and financial products businesses are comprised of the following (in millions). March 31, December 31, 2010 2009 Consumer installment loans and finance receivables $ 14,202 $ 12,779 Commercial loans and finance receivables 1,594 1,558 Allowances for uncollectible loans (373 ) (348 ) $ 15,423 $ 13,989

Inventories

Inventories
	3 Months Ended Mar. 31, 2010
Inventories [Abstract]
Note 9. Inventories	Note 9.Inventories Inventories are comprised of the following (in millions). March 31, December 31, 2010 2009 Raw materials $ 943 $ 924 Work in process and other 497 438 Finished manufactured goods 1,958 1,959 Purchased goods 3,053 2,826 $ 6,451 $ 6,147

Goodwill

Goodwill
	3 Months Ended Mar. 31, 2010
Goodwill [Abstract]
Note 10. Goodwill	Note 10.Goodwill A reconciliation of the change in the carrying value of goodwill is as follows (in millions). March 31, December 31, 2010 2009 Balance at beginning of year $ 33,972 $ 33,781 Acquisition of BNSF 14,803 Other (61 ) 191 Ending balance $ 48,714 $ 33,972

Property, plant and equipment

Property, plant and equipment
	3 Months Ended Mar. 31, 2010
Property, plant and equipment [Abstract]
Note 11. Property, plant and equipment	Note 11.Property, plant and equipment Property, plant and equipment of insurance and other businesses is comprised of the following (in millions). Rangesof estimatedusefullife March 31, 2010 December 31, 2009 Land $ 742 $ 740 Buildings and improvements 340 years 4,621 4,606 Machinery and equipment 325 years 10,839 10,845 Furniture, fixtures and other 320 years 1,661 1,595 Assets held for lease 1230 years 5,734 5,706 23,597 23,492 Accumulated depreciation (8,031 ) (7,772 ) $ 15,566 $ 15,720 Depreciation expense of insurance and other businesses for the first quarter of 2010 and 2009 was $380 million and $403 million, respectively. Property, plant and equipment of railroad, utilities and energy businesses is comprised of the following (in millions). Rangesof estimatedusefullife March 31, 2010 December 31, 2009 Railroad: Land $ 5,823 $ Track structure and other roadway 5100 years 34,254 Locomotives, freight cars and other equipment 137 years 3,824 Construction in progress 633 Utilities and Energy: Utility generation, distribution and transmission system 585 years 35,204 35,616 Interstate pipeline assets 367 years 5,797 5,809 Independent power plants and other assets 330 years 1,153 1,157 Construction in progress 2,210 2,152 88,898 44,734 Accumulated depreciation (13,950 ) (13,798 ) $ 74,948 $ 30,936 Railroad property, plant and equipment includes the land, other roadway, track structure and rolling stock (primarily locomotives and freight cars) of BNSF, which we acquired on February 12, 2010. See Note 3. The cost of these assets represents the estimated fair value of these assets as of the acquisition date. Through BNSF Railway Company, BNSF operates one of the largest railroad systems in North America with approximately 32,000 route miles of track in 28 states and two Canadian provinces. Railroad property, plant and equipment is depreciated and amortized on a straight-line basis over the estimated useful lives. Depreciation is determined under the group method in which a single depreciation rate is applied to the gross investment in a particular class of property. BNSF conducts studies of depreciation rates and the required accumulated depreciation balance as required by the Surface Transportation Board, which is generally every three years for equipment property and every six years for track structure and other roadway property. The effect of changes in the estimated service lives of these assets is recorded on a prospective basis. Upon normal sale or retirement of most depreciable railroad property, no gain or loss is recognized. The disposals of land and non-rail property as well as significant prematu

Derivative contracts

Derivative contracts
	3 Months Ended Mar. 31, 2010
Derivative contracts [Abstract]
Note 12. Derivative contracts	Note 12.Derivative contracts Derivative contracts are used primarily by our finance and financial products businesses and our railroad, utilities and energy businesses. As of March 31, 2010, substantially all of the derivative contracts in-force of our finance and financial products businesses 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 of our finance and financial products businesses follows (in millions). March 31, 2010 December31, 2009 Assets (3) Liabilities Notional Value Assets(3) Liabilities Notional Value Equity index put options $ $ 7,131 $ 36,760 (1) $ $ 7,309 $ 37,990 (1) Credit default obligations: High yield indexes 500 5,423 (2) 781 5,533 (2) States/municipalities 841 16,042 (2) 853 16,042 (2) Individual corporate 89 3,565 (2) 81 3,565 (2) Other 309 224 378 360 Counterparty netting and funds held as collateral (75 ) (29 ) (193 ) (34 ) $ 323 $ 8,667 $ 266 $ 9,269 (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). First Quarter 2010 2009 Equity index put options $ 178 $ (166 ) Credit default obligations 208 (1,351 ) Other 25 $ 411 $ (1,517 ) The equity index put option contracts are European style options written on four major equity indexes. 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 which occur between June 2018 and January 2028. We received the premiums on these contracts in full at the contract inception dates and therefore we have no counterparty credit risk. At March 31, 2010, the aggregate intrinsic value (the undiscounted liability assuming the contracts are settled on their future expiration dates based on the March 31, 2010 index values) was

Supplemental cash flow informat

Supplemental cash flow information
	3 Months Ended Mar. 31, 2010
Supplemental cash flow information [Abstract]
Note 13. Supplemental cash flow information	Note 13.Supplemental cash flow information A summary of supplemental cash flow information for the first quarter of 2010 and 2009 is presented in the following table (in millions). First Quarter 2010 2009 Cash paid during the period for: Income taxes $ 310 $ 225 Interest of finance and financial products businesses 194 169 Interest of railroad, utilities and energy businesses 374 282 Interest of insurance and other businesses 38 35 Non-cash investing and financing activities: Liabilities assumed in connection with acquisition of BNSF 30,968 Common stock issued in connection with acquisition of BNSF 10,577

Notes payable and other borrowi

Notes payable and other borrowings
	3 Months Ended Mar. 31, 2010
Notes payable and other borrowings [Abstract]
Note 14. Notes payable and other borrowings	Note 14.Notes payable and other borrowings Notes payable and other borrowings are summarized below (in millions). The average interest rates shown in the following tables are the weighted average interest rates on outstanding debt as of March 31, 2010. Average Interest Rate March 31, 2010 December 31, 2009 Insurance and other: Issued by Berkshire parent company due 2010-2033 1.4% $ 8,322 $ 340 Short-term subsidiary borrowings 0.3% 1,423 1,607 Other subsidiary borrowings due 2010-2035 5.3% 2,594 2,614 $ 12,339 $ 4,561 In February 2010, Berkshire issued $8.0 billion aggregate par amount of senior unsecured notes consisting of $2.0 billion par amount of floating rate notes due in 2011; $1.1 billion par amount of floating rate notes due in 2012; $1.2 billion par amount of floating rate notes due in 2013; $600 million par amount of 1.4% notes due in 2012; $1.4 billion par amount of 2.125% notes due in 2013; and $1.7 billion par amount of 3.2% notes due in 2015. These notes were issued in connection with the BNSF acquisition. Average Interest Rate March 31, 2010 December 31, 2009 Railroad, utilities and energy: Issued by MidAmerican Energy Holdings Company (MidAmerican) and its subsidiaries: MidAmerican senior unsecured debt due 2012-2037 6.1% $ 5,371 $ 5,371 Subsidiary and other debt due 2010-2039 5.9% 14,155 14,208 Issued by BNSF due 2010-2097 6.0% 11,073 $ 30,599 $ 19,579 Berkshire does not guaranty any debt or other borrowings of BNSF, MidAmerican or their subsidiaries. Subsidiary debt of utilities and energy businesses represents amounts issued by subsidiaries of MidAmerican pursuant to separate financing agreements. 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 March 31, 2010, MidAmerican and its subsidiaries were in compliance with all applicable covenants. The notes payable and other borrowings of BNSF were issued prior to our acquisition on February 12, 2010. Principal payments expected during the next five years with respect to BNSFs borrowings as of March 31, 2010 are as follows (in millions):2010 - $575; 2011 - $673; 2012 - $501; 2013 - $448; and 2014 - $641. Average Interest Rate March 31, 2010 December 31, 2009 Finance and financial products: Issued by Berkshire Hathaway Finance Corporation (BHFC) 4.2% $ 11,537 $ 12,051 Issued by other subsidiaries due 2010-2036 5.3% 3,152 1,718 $ 14,689 $ 13,769 BHFC is a 100% owned finance subsidiary of Berkshire, which has fully and unconditionally guaranteed its secu

Fair value measurements

Fair value measurements
	3 Months Ended Mar. 31, 2010
Fair value measurements [Abstract]
Note 15. Fair value measurements	Note 15.Fair value measurements The estimated fair values of our financial instruments as of March31, 2010 and December 31, 2009 are shown in the following table (in millions). The carrying values of cash and cash equivalents, accounts receivable and accounts payable, accruals and other liabilities are deemed to be reasonable estimates of their fair values. Carrying Value Fair Value 2010 2009 2010 2009 Investments in fixed maturity securities $ 36,820 $ 37,131 $ 36,820 $ 37,131 Investments in equity securities 60,773 59,034 60,773 59,034 Other investments 26,143 32,600 27,129 34,540 Loans and finance receivables 15,423 13,989 13,961 12,415 Derivative contract assets (1) 639 454 639 454 Notes payable and other borrowings: Insurance and other 12,339 4,561 12,457 4,669 Railroad, utilities and energy 30,599 19,579 31,813 20,868 Finance and financial products 14,689 13,769 15,373 14,355 Derivative contract liabilities: Railroad, utilities and energy (2) 655 581 655 581 Finance and financial products 8,667 9,269 8,667 9,269 (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 our 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. The 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 our equity investments are traded on an exchange in active markets and fair values are based on the closing prices as of the balance sheet date. 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

Common stock

Common stock
	3 Months Ended Mar. 31, 2010
Common Stock [Abstract]
Note 16. Common stock	Note 16.Common stock On January20, 2010, our shareholders approved proposals to increase the authorized number of Class B common shares from 55,000,000 to 3,225,000,000 and to effect a 50-for-1 split of the Class B common stock which became effective on January21, 2010. The ClassA common stock was not split. Thereafter, each share of ClassA common stock became convertible, at the option of the holder, into 1,500 shares of Class B common stock. Class B common stock is not convertible into ClassA common stock. The Class B share data in the following table and the related disclosures regarding Class B shares are presented on a post-split basis. Changes in issued and outstanding Berkshire common stock during the first three months of 2010 are shown in the table below. ClassA,$5ParValue ClassB,$0.0033ParValue (1,650,000 shares authorized) SharesIssuedandOutstanding (3,225,000,000sharesauthorized) SharesIssuedandOutstanding Balance December31, 2009 1,055,281 744,701,300 Shares issued in the acquisition of BNSF (See Note 3) 80,931 20,976,621 Conversions of ClassA common stock to Class B common stock and other (127,743 ) 192,279,300 Balance March 31, 2010 1,008,469 957,957,221 Class B common stock possesses dividend and distribution rights equal to one-fifteen-hundredth (1/1,500)of such rights of ClassA common stock. Each ClassA common share is entitled to one vote per share. Each Class B common share possesses voting rights equivalent to one-ten-thousandth (1/10,000)of the voting rights of a ClassA share. Unless otherwise required under Delaware General Corporation Law, ClassA and Class B common shares vote as a single class. On an equivalent ClassA common stock basis, there were 1,647,107 shares outstanding as of March 31, 2010 and 1,551,749 shares outstanding as of December31, 2009. The Class B stock split had no effect on the number of equivalent ClassA common shares outstanding. In addition to our common stock, 1,000,000 shares of preferred stock are authorized, but none of which are issued and outstanding.

Business segment data

Business segment data
	3 Months Ended Mar. 31, 2010
Business segment data [Abstract]
Note 17. Business segment data	Note 17.Business segment data Revenues and earnings before income taxes and equity method earnings by segment data for the first quarter of 2010 and 2009 were as follows (in millions). Revenues First Quarter 2010 2009 Operating Businesses: Insurance group: Premiums earned: GEICO $ 3,454 $ 3,261 General Re 1,440 1,379 Berkshire Hathaway Reinsurance Group 2,107 3,087 Berkshire Hathaway Primary Group 425 456 Investment income 1,302 1,366 Total insurance group 8,728 9,549 Burlington Northern Santa Fe * 2,073 Finance and financial products 977 953 Marmon 1,397 1,254 McLane Company 7,430 6,993 MidAmerican 2,977 2,949 Other businesses 6,526 5,798 30,108 27,496 Reconciliation of segments to consolidated amount: Investment and derivative gains/losses 1,729 (4,983 ) Eliminations and other 200 271 $ 32,037 $ 22,784 Earnings(loss)before income taxes and equitymethodearnings First Quarter 2010 2009 Operating Businesses: Insurance group: Underwriting: GEICO $ 299 $ 148 General Re (39 ) (16 ) Berkshire Hathaway Reinsurance Group 52 177 Berkshire Hathaway Primary Group 33 4 Net investment income 1,283 1,354 Total insurance group 1,628 1,667 Burlington Northern Santa Fe * 476 Finance and financial products 111 112 Marmon 190 162 McLane Company 80 143 MidAmerican 395 303 Other businesses 583 206 3,463 2,593 Reconciliation of segments to consolidated amount: Investment and derivative gains/losses 1,729 (4,983 ) Interest expense, excluding interest allocated to operating businesses (49 ) (23 ) Eliminations and other (45 ) (130 ) $ 5,098 $ (2,543 ) * Includes revenue and earnings from acquisition date of February 12, 2010.

Contingencies and Commitments

Contingencies and Commitments
	3 Months Ended Mar. 31, 2010
Contingencies and Commitments [Abstract]
Note 18. Contingencies and Commitments	Note 18.Contingencies and Commitments We are parties in a variety of legal actions arising out of the normal course of business. In particular, such legal actions affect our 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. We do not believe that such normal and routine litigation will have a material effect on our 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 On January19, 2010, General Re Corporation (General Re), a wholly-owned subsidiary of Berkshire Hathaway Inc. (Berkshire), entered into settlements with the U.S. Department of Justice (the DOJ) and the Securities and Exchange Commission (the SEC) related to the investigations of non-traditional products previously disclosed by Berkshire. Berkshire, General Re and certain of Berkshires insurance subsidiaries had been fully cooperating in these investigations since General Re originally received subpoenas in January 2005. As part of the settlements, General Re entered into a non-prosecution agreement (the Non-Prosecution Agreement) with the DOJ. Under the terms of the Non-Prosecution Agreement, among other things, the DOJ agreed not to prosecute General Re for any crimes committed by General Re relating to General Res previously disclosed transaction with American International Group, Inc. (AIG) initially effected in 2000 (the AIG Transaction), and General Re paid $19.5 million to the United States. The Non-Prosecution Agreement provides that General Res agreement to pay $60.5 million, exclusive of attorneys fees and expenses, through a pending civil class action settlement with AIG shareholders, when combined with the amounts to be paid by AIG and the other defendants, satisfies restitution with regard to the AIG Transaction. General Re also agreed to continue to cooperate fully with the DOJ and the SEC in any ongoing investigations of individuals who may have been involved with the AIG Transaction. The Non-Prosecution Agreement acknowledges that General Re instituted a number of internal corporate remediation measures applicable to itself and its subsidiaries and, under the terms of the Non-Prosecution Agreement, General Re agreed to maintain such remediation measures at least during the three-year term thereof. General Re also agreed to toll the statute of limitations for the term of the Non-Prosecution Agreement on crimes related to the AIG Transaction, and that neither it nor its directors, executive officers or representatives will make, cause others to make or acknowledge as true any statements inconsistent with the agreed statement of facts in the Non-Prosecution Agreement. The Non-Prosecution Agreement provides that if the DOJ determines that General Re or any of its employees, officers or directors have failed to compl