Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Feb. 18, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BRKA | ||
Entity Registrant Name | BERKSHIRE HATHAWAY INC. | ||
Entity Central Index Key | 1067983 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $235,176,000,000 | ||
Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 825,522 | ||
Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,226,158,699 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
ASSETS | ||||
Cash and cash equivalents | $63,269 | $48,186 | ||
Investments in equity securities | 117,470 | [1] | 117,505 | [2] |
Inventories | 10,236 | 9,860 | ||
Goodwill | 60,714 | 57,011 | ||
Total assets | 526,186 | 484,931 | ||
LIABILITIES | ||||
Income taxes, principally deferred | 61,235 | 57,739 | ||
Total liabilities | 283,159 | 260,446 | ||
SHAREHOLDERS' EQUITY | ||||
Common stock | 8 | 8 | ||
Capital in excess of par value | 35,573 | 35,472 | ||
Accumulated other comprehensive income | 42,732 | 44,025 | ||
Retained earnings | 163,620 | 143,748 | ||
Treasury stock, at cost | -1,763 | -1,363 | ||
Berkshire Hathaway shareholders' equity | 240,170 | 221,890 | ||
Noncontrolling interests | 2,857 | 2,595 | ||
Total shareholders' equity | 243,027 | 224,485 | ||
Total liabilities and shareholders' equity | 526,186 | 484,931 | ||
Insurance and Other [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 57,974 | 42,433 | ||
Investments in fixed maturity securities | 27,397 | 28,785 | ||
Investments in equity securities | 115,529 | 115,464 | ||
Other investments | 16,346 | 12,334 | ||
Investments in H.J. Heinz Holding Corporation | 11,660 | 12,111 | ||
Receivables | 21,852 | 20,280 | ||
Inventories | 10,236 | 9,860 | ||
Property, plant and equipment | 14,153 | 13,623 | ||
Goodwill | 34,959 | 33,067 | ||
Other | 23,763 | 19,113 | ||
Total assets | 333,869 | 307,070 | ||
LIABILITIES | ||||
Losses and loss adjustment expenses | 71,477 | 64,866 | ||
Unearned premiums | 11,944 | 10,770 | ||
Life, annuity and health insurance benefits | 13,261 | 11,681 | ||
Accounts payable, accruals and other liabilities | 23,307 | 21,979 | ||
Notes payable and other borrowings | 11,894 | 12,440 | ||
Total liabilities | 131,883 | 121,736 | ||
Railroad, Utilities and Energy [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 3,001 | 3,400 | ||
Property, plant and equipment | 115,054 | 102,482 | ||
Goodwill | 24,418 | 22,603 | ||
Other | 16,343 | 16,149 | ||
Total assets | 158,816 | 144,634 | ||
LIABILITIES | ||||
Accounts payable, accruals and other liabilities | 15,595 | 14,557 | ||
Notes payable and other borrowings | 55,579 | 46,655 | ||
Total liabilities | 71,174 | 61,212 | ||
Finance and Financial Products [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 2,294 | 2,353 | ||
Investments in equity and fixed maturity securities | 1,299 | 1,506 | ||
Investments in equity securities | 1,060 | 938 | ||
Other investments | 5,978 | 5,617 | ||
Loans and finance receivables | 12,566 | 12,826 | ||
Property, plant and equipment and assets held for lease | 8,037 | 7,700 | ||
Goodwill | 1,337 | 1,341 | ||
Other | 1,990 | 1,884 | ||
Total assets | 33,501 | 33,227 | ||
LIABILITIES | ||||
Accounts payable, accruals and other liabilities | 1,321 | 1,299 | ||
Derivative contract liabilities | 4,810 | 5,331 | ||
Notes payable and other borrowings | 12,736 | 13,129 | ||
Total liabilities | $18,867 | $19,759 | ||
[1] | Approximately 59% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company-$14.1 billion; Wells Fargo & Company-$26.5 billion; International Business Machines Corporation-$12.3 billion; and The Coca-Cola Company-$16.9 billion). | |||
[2] | Approximately 55% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company-$13.8 billion; Wells Fargo & Company-$21.9 billion; International Business Machines Corporation-$12.8 billion; and The Coca-Cola Company-$16.5 billion). |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenues: | ||||||
Sales and service revenues | $102,200 | $97,600 | $85,800 | |||
Investment gains/losses | 3,575 | 4,065 | 1,462 | |||
Total revenues | 194,673 | 182,150 | 162,463 | |||
Costs and expenses: | ||||||
Total costs and expenses | 166,568 | 153,354 | 140,227 | |||
Earnings before income taxes | 28,105 | 28,796 | 22,236 | |||
Income tax expense | 7,935 | 8,951 | 6,924 | |||
Net earnings | 20,170 | 19,845 | 15,312 | |||
Less: Earnings attributable to noncontrolling interests | 298 | 369 | 488 | |||
Net earnings attributable to Berkshire Hathaway shareholders | 19,872 | 19,476 | 14,824 | |||
Average common shares outstanding | 1,643,456 | [1] | 1,643,613 | [1] | 1,651,294 | [1] |
Class A [Member] | ||||||
Net earnings per share attributable to Berkshire Hathaway shareholders: | ||||||
Net earnings per share attributable to Berkshire Hathaway shareholders | $12,092 | [1] | $11,850 | [1] | $8,977 | [1] |
Insurance and Other [Member] | ||||||
Revenues: | ||||||
Insurance premiums earned | 41,253 | 36,684 | 34,545 | |||
Sales and service revenues | 97,097 | 92,993 | 81,447 | |||
Interest, dividend and other investment income | 5,026 | 4,934 | 4,532 | |||
Investment gains/losses | 3,503 | 3,881 | 990 | |||
Total revenues | 146,879 | 138,492 | 121,514 | |||
Costs and expenses: | ||||||
Insurance losses and loss adjustment expenses | 26,406 | 21,275 | 20,113 | |||
Life, annuity and health insurance benefits | 5,181 | 5,072 | 5,114 | |||
Insurance underwriting expenses | 6,998 | 7,248 | 7,693 | |||
Cost of sales and services | 78,873 | 75,953 | 66,419 | |||
Selling, general and administrative expenses | 12,198 | 11,732 | 10,307 | |||
Interest expense | 419 | 395 | 363 | |||
Total costs and expenses | 130,075 | 121,675 | 110,009 | |||
Railroad, Utilities and Energy [Member] | ||||||
Revenues: | ||||||
Total revenues | 40,690 | 34,757 | 32,582 | |||
Costs and expenses: | ||||||
Cost of sales and operating expenses | 29,378 | 25,157 | 23,816 | |||
Interest expense | 2,378 | 1,865 | 1,745 | |||
Total costs and expenses | 31,756 | 27,022 | 25,561 | |||
Finance and Financial Products [Member] | ||||||
Revenues: | ||||||
Sales and service revenues | 5,094 | 4,635 | 4,358 | |||
Interest, dividend and other investment income | 1,432 | 1,474 | 1,574 | |||
Investment gains/losses | 72 | 184 | 472 | |||
Derivative gains/losses | 506 | 2,608 | 1,963 | |||
Total revenues | 7,104 | 8,901 | 8,367 | |||
Costs and expenses: | ||||||
Cost of sales and services | 2,758 | 2,566 | 2,458 | |||
Selling, general and administrative expenses | 1,523 | 1,550 | 1,563 | |||
Interest expense | 456 | 541 | 636 | |||
Total costs and expenses | $4,737 | $4,657 | $4,657 | |||
[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-fifteen-hundredth (1/1,500) of such amount or $8.06 per share for 2014, $7.90 per share for 2013 and $5.98 per share for 2012. |
Consolidated_Statements_of_Ear1
Consolidated Statements of Earnings (Parenthetical) (Class B [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Class B [Member] | |||
Ratio of earnings per Class B share to earnings per Class A share | 0.000667 | ||
Net earnings per share attributable to Berkshire Hathaway shareholders | $8.06 | $7.90 | $5.98 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net earnings | $20,170 | $19,845 | $15,312 |
Other comprehensive income: | |||
Net change in unrealized appreciation of investments | 5,831 | 25,111 | 15,700 |
Applicable income taxes | -2,062 | -8,691 | -5,434 |
Reclassification of investment appreciation in net earnings | -3,360 | -2,447 | -953 |
Applicable income taxes | 1,176 | 856 | 334 |
Foreign currency translation | -2,032 | -82 | 276 |
Applicable income taxes | 183 | 34 | -9 |
Prior service cost and actuarial gains/losses of defined benefit pension plans | -1,703 | 2,602 | 5 |
Applicable income taxes | 624 | -950 | -26 |
Other, net | 8 | 138 | -32 |
Other comprehensive income, net | -1,335 | 16,571 | 9,861 |
Comprehensive income | 18,835 | 36,416 | 25,173 |
Comprehensive income attributable to noncontrolling interests | 256 | 394 | 503 |
Comprehensive income attributable to Berkshire Hathaway shareholders | $18,579 | $36,022 | $24,670 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common stock and capital in excess of par value | Accumulated other comprehensive income | Retained earnings | Treasury stock | Noncontrolling interests |
In Millions | ||||||
Balance at Dec. 31, 2011 | $168,961 | $37,815 | $17,654 | $109,448 | ($67) | $4,111 |
Net earnings | 15,312 | 14,824 | 488 | |||
Other comprehensive income, net | 9,861 | 9,846 | 15 | |||
Issuance (repurchase) of common stock | -1,178 | 118 | -1,296 | |||
Transactions with noncontrolling interests | -1,368 | -695 | -673 | |||
Balance at Dec. 31, 2012 | 191,588 | 37,238 | 27,500 | 124,272 | -1,363 | 3,941 |
Net earnings | 19,845 | 19,476 | 369 | |||
Other comprehensive income, net | 16,571 | 16,546 | 25 | |||
Issuance of common stock | 92 | 92 | ||||
Transactions with noncontrolling interests | -3,611 | -1,850 | -21 | -1,740 | ||
Balance at Dec. 31, 2013 | 224,485 | 35,480 | 44,025 | 143,748 | -1,363 | 2,595 |
Net earnings | 20,170 | 19,872 | 298 | |||
Other comprehensive income, net | -1,335 | -1,293 | -42 | |||
Issuance (acquisition) of common stock | -282 | 118 | -400 | |||
Transactions with noncontrolling interests | -11 | -17 | 6 | |||
Balance at Dec. 31, 2014 | $243,027 | $35,581 | $42,732 | $163,620 | ($1,763) | $2,857 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net earnings | $20,170 | $19,845 | $15,312 |
Adjustments to reconcile net earnings to operating cash flows: | |||
Investment gains/losses | -3,575 | -4,065 | -1,462 |
Depreciation and amortization | 7,370 | 6,508 | 6,154 |
Other | -341 | 373 | -213 |
Changes in operating assets and liabilities before business acquisitions: | |||
Losses and loss adjustment expenses | 7,404 | 578 | -421 |
Deferred charges reinsurance assumed | -3,413 | -340 | 121 |
Unearned premiums | 1,159 | 519 | 1,134 |
Receivables and originated loans | -1,890 | 1,035 | -1,610 |
Derivative contract assets and liabilities | -520 | -2,430 | -2,183 |
Income taxes | 4,905 | 3,514 | 1,710 |
Other | 741 | 2,167 | 2,408 |
Net cash flows from operating activities | 32,010 | 27,704 | 20,950 |
Cash flows from investing activities: | |||
Purchases of fixed maturity securities | -7,774 | -7,546 | -8,250 |
Purchases of equity securities | -7,014 | -8,558 | -7,376 |
Investments in H.J. Heinz Holding Corp. and other investments | -3,000 | -12,250 | |
Sales of fixed maturity securities | 1,697 | 4,311 | 2,982 |
Redemptions and maturities of fixed maturity securities | 6,795 | 11,203 | 6,064 |
Sales and redemptions of equity securities | 8,896 | 3,869 | 8,088 |
Purchases of loans and finance receivables | -181 | -490 | -650 |
Collections of loans and finance receivables | 885 | 654 | 1,714 |
Acquisitions of businesses, net of cash acquired | -4,824 | -6,431 | -3,188 |
Purchases of property, plant and equipment | -15,185 | -11,087 | -9,775 |
Other | 336 | -1,210 | -183 |
Net cash flows from investing activities | -19,369 | -27,535 | -10,574 |
Cash flows from financing activities: | |||
Changes in short term borrowings, net | 932 | -1,317 | -309 |
Acquisitions of noncontrolling interests and treasury stock | -1,287 | -2,890 | -2,096 |
Other financing activities | 22 | -134 | 48 |
Net cash flows from financing activities | 2,731 | 961 | -806 |
Effects of foreign currency exchange rate changes | -289 | 64 | 123 |
Increase (decrease) in cash and cash equivalents | 15,083 | 1,194 | 9,693 |
Cash and cash equivalents: | |||
Cash and cash equivalents at beginning of year | 48,186 | 46,992 | 37,299 |
Cash and cash equivalents at end of year | 63,269 | 48,186 | 46,992 |
Insurance and Other [Member] | |||
Adjustments to reconcile net earnings to operating cash flows: | |||
Investment gains/losses | -3,503 | -3,881 | -990 |
Cash flows from financing activities: | |||
Proceeds from borrowings | 845 | 2,622 | 1,820 |
Repayments of borrowings | -1,289 | -2,750 | -1,999 |
Cash and cash equivalents: | |||
Cash and cash equivalents at beginning of year | 42,433 | 42,186 | |
Cash and cash equivalents at end of year | 57,974 | 42,433 | 42,186 |
Railroad, Utilities and Energy [Member] | |||
Cash flows from financing activities: | |||
Proceeds from borrowings | 5,765 | 7,491 | 4,707 |
Repayments of borrowings | -1,862 | -1,596 | -2,119 |
Cash and cash equivalents: | |||
Cash and cash equivalents at beginning of year | 3,400 | 2,570 | |
Cash and cash equivalents at end of year | 3,001 | 3,400 | 2,570 |
Finance and Financial Products [Member] | |||
Adjustments to reconcile net earnings to operating cash flows: | |||
Investment gains/losses | -72 | -184 | -472 |
Cash flows from financing activities: | |||
Proceeds from borrowings | 1,148 | 3,462 | 2,352 |
Repayments of borrowings | -1,543 | -3,927 | -3,210 |
Cash and cash equivalents: | |||
Cash and cash equivalents at beginning of year | 2,353 | 2,236 | |
Cash and cash equivalents at end of year | $2,294 | $2,353 | $2,236 |
Significant_accounting_policie
Significant accounting policies and practices | 12 Months Ended | ||
Dec. 31, 2014 | |||
Significant accounting policies and practices | -1 | Significant accounting policies and practices | |
(a) | Nature of operations and basis of consolidation | ||
Berkshire Hathaway Inc. (“Berkshire”) is a holding company owning subsidiaries engaged in a number of diverse business activities, including insurance and reinsurance, freight rail transportation, utilities and energy, manufacturing, service, retailing and finance. In these notes the terms “us,” “we,” or “our” refer to Berkshire and its consolidated subsidiaries. Further information regarding our reportable business segments is contained in Note 23. Significant business acquisitions completed over the past three years are discussed in Note 2. | |||
The accompanying Consolidated Financial Statements include the accounts of Berkshire consolidated with the accounts of all subsidiaries and affiliates in which we hold a controlling financial interest as of the financial statement date. Normally a controlling financial interest reflects ownership of a majority of the voting interests. We consolidate a variable interest entity (“VIE”) when we possess both the power to direct the activities of the VIE that most significantly impact its economic performance and we are either obligated to absorb the losses that could potentially be significant to the VIE or we hold the right to receive benefits from the VIE that could potentially be significant to the VIE. | |||
Intercompany accounts and transactions have been eliminated. In 2014, we began including the transportation equipment manufacturing and leasing businesses of Marmon Holdings, Inc. (“Marmon”) as part of our finance and financial products businesses. Prior period amounts in these financial statements have been reclassified to conform to the current year presentation. On April 30, 2014, MidAmerican Energy Holdings Company’s name was changed to Berkshire Hathaway Energy Company (“BHE”). | |||
(b) | Use of estimates in preparation of financial statements | ||
The preparation of our Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. In particular, estimates of unpaid losses and loss adjustment expenses and related recoverables under reinsurance for property and casualty insurance are subject to considerable estimation error due to the inherent uncertainty in projecting ultimate claim amounts. In addition, estimates and assumptions associated with the amortization of deferred charges on retroactive reinsurance contracts, determinations of fair values of certain financial instruments and evaluations of goodwill and identifiable intangible assets for impairment require considerable judgment. Actual results may differ from the estimates used in preparing our Consolidated Financial Statements. | |||
(c) | Cash and cash equivalents | ||
Cash equivalents consist of funds invested in U.S. Treasury Bills, money market accounts, demand deposits and other investments with a maturity of three months or less when purchased. | |||
(d) | Investments | ||
We determine the appropriate classification of investments in fixed maturity and equity securities at the acquisition date and re-evaluate the classification at each balance sheet date. Held-to-maturity investments are carried at amortized cost, reflecting the ability and intent to hold the securities to maturity. Trading investments are securities acquired with the intent to sell in the near term and are carried at fair value. All other securities are classified as available-for-sale and are carried at fair value with net unrealized gains or losses reported as a component of accumulated other comprehensive income. Substantially all of our investments in equity and fixed maturity securities are classified as available-for-sale. | |||
We utilize the equity method to account for investments when we possess the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when an investor possesses more than 20% of the voting interests of the investee. This presumption may be overcome based on specific facts and circumstances that demonstrate that the ability to exercise significant influence is restricted. We apply the equity method to investments in common stock and to other investments when such other investments possess substantially identical subordinated interests to common stock. | |||
In applying the equity method, we record the investment at cost and subsequently increase or decrease the carrying amount of the investment by our proportionate share of the net earnings or losses and other comprehensive income of the investee. We record dividends or other equity distributions as reductions in the carrying value of the investment. In the event that net losses of the investee reduce the carrying amount to zero, additional net losses may be recorded if other investments in the investee are at-risk, even if we have not committed to provide financial support to the investee. Such additional equity method losses, if any, are based upon the change in our claim on the investee’s book value. | |||
Investment gains and losses arise when investments are sold (as determined on a specific identification basis) or are other-than-temporarily impaired. If a decline in the value of an investment below cost is deemed other than temporary, the cost of the investment is written down to fair value, with a corresponding charge to earnings. Factors considered in determining whether an impairment is other than temporary include: the financial condition, business prospects and creditworthiness of the issuer, the relative amount of the decline, our ability and intent to hold the investment until the fair value recovers and the length of time that fair value has been less than cost. With respect to an investment in a fixed maturity security, we recognize an other-than-temporary impairment if we (a) intend to sell or expect to be required to sell the security before its amortized cost is recovered or (b) do not expect to ultimately recover the amortized cost basis even if we do not intend to sell the security. Under scenario (a), we recognize losses in earnings and under scenario (b), we recognize the credit loss component in earnings and the difference between fair value and the amortized cost basis net of the credit loss in other comprehensive income. | |||
(e) | Receivables, loans and finance receivables | ||
Receivables of the insurance and other businesses are stated net of estimated allowances for uncollectible balances. Allowances for uncollectible balances are provided when it is probable counterparties or customers will be unable to pay all amounts due based on the contractual terms. Receivables are generally written off against allowances after all reasonable collection efforts are exhausted. | |||
Loans and finance receivables of the finance and financial products businesses are predominantly manufactured housing installment loans. Loans and finance receivables are stated at amortized cost based on our ability and intent to hold such loans and receivables to maturity and are stated net of allowances for uncollectible accounts. The carrying value of acquired loans represents acquisition costs, plus or minus origination and commitment costs paid or fees received, which together with acquisition premiums or discounts, are deferred and amortized as yield adjustments over the life of the loans. Loans and finance receivables include loan securitizations issued when we have the power to direct and the right to receive residual returns. Substantially all of these loans are secured by real or personal property or other assets of the borrower. | |||
Allowances for credit losses from manufactured housing loans include estimates of losses on loans currently in foreclosure and losses on loans not currently in foreclosure. Estimates of losses on loans in foreclosure are based on historical experience and collateral recovery rates. Estimates of losses on loans not currently in foreclosure consider historical default rates, collateral recovery rates and existing economic conditions. Allowances for credit losses also incorporate the historical average time elapsed from the last payment until foreclosure. | |||
Loans in which payments are delinquent (with no grace period) are considered past due. Loans which are over 90 days past due or are in foreclosure are placed on nonaccrual status and interest previously accrued but not collected is reversed. Subsequent amounts received on the loans are first applied to the principal and interest owed for the most delinquent amount. Interest income accruals are resumed once a loan is less than 90 days delinquent. | |||
Loans in the foreclosure process are considered non-performing. Once a loan is in foreclosure, interest income is not recognized unless the foreclosure is cured or the loan is modified. Once a modification is complete, interest income is recognized based on the terms of the new loan. Loans that have gone through foreclosure are charged off when the collateral is sold. Loans not in foreclosure are evaluated for charge off based on individual circumstances concerning the future collectability of the loan and the condition of the collateral securing the loan. | |||
(f) | Derivatives | ||
We carry derivative contracts in our Consolidated Balance Sheets at fair value, net of reductions permitted under master netting agreements with counterparties. The changes in fair value of derivative contracts that do not qualify as hedging instruments for financial reporting purposes are recorded in earnings. | |||
Cash collateral received from or paid to counterparties to secure derivative contract assets or liabilities is included in other liabilities or other assets. Securities received from counterparties as collateral are not recorded as assets and securities delivered to counterparties as collateral continue to be reflected as assets in our Consolidated Balance Sheets. | |||
(g) | Fair value measurements | ||
As defined under GAAP, fair value is the price that would be received to sell an asset or paid to transfer a liability between market participants in the principal market or in the most advantageous market when no principal market exists. Adjustments to transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value. Alternative valuation techniques may be appropriate under the circumstances to determine the value that would be received to sell an asset or paid to transfer a liability in an orderly transaction. Market participants are assumed to be independent, knowledgeable, able and willing to transact an exchange and not acting under duress. Our nonperformance or credit risk is considered in determining the fair value of liabilities. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized in a current or future market exchange. | |||
(h) | Inventories | ||
Inventories consist of manufactured goods and goods acquired for resale. Manufactured inventory costs include raw materials, direct and indirect labor and factory overhead. Inventories are stated at the lower of cost or market. As of December 31, 2014, approximately 43% of our consolidated inventory cost was determined using the last-in-first-out (“LIFO”) method, 33% using the first-in-first-out (“FIFO”) method, and the remainder primarily using the average cost method. With respect to inventories carried at LIFO cost, the aggregate difference in value between LIFO cost and cost determined under the FIFO method was $857 million and $796 million as of December 31, 2014 and 2013, respectively. | |||
(i) | Property, plant and equipment and leased assets | ||
Additions to property, plant and equipment used in operations and leased assets are recorded at cost and consist of major additions, improvements and betterments. With respect to constructed assets, all construction related material, direct labor and contract services as well as certain indirect costs are capitalized. Indirect costs include interest over the construction period. With respect to constructed assets of certain of our regulated utility and energy subsidiaries that are subject to authoritative guidance for regulated operations, capitalized costs also include an equity allowance for funds used during construction, which represents the cost of equity funds used to finance the construction of the regulated facilities. Also see Note 1(q). | |||
Normal repairs and maintenance and other costs that do not improve the property, extend the useful life or otherwise do not meet capitalization criteria are charged to expense as incurred. Rail grinding costs related to our railroad properties are expensed as incurred. | |||
Property, plant and equipment and leased assets are depreciated to estimated salvage value primarily on the straight-line method over estimated useful lives or mandated recovery periods as prescribed by regulatory authorities. Depreciation of assets of our regulated utilities and railroad is generally provided using group depreciation methods where rates are based on periodic depreciation studies approved by the applicable regulator. Under group depreciation, a single depreciation rate is applied to the gross investment in a particular class of property, despite differences in the service life or salvage value of individual property units within the same class. When our regulated utilities or railroad retires or sells a component of the assets accounted for using group depreciation methods, no gain or loss is recognized. Gains or losses on disposals of all other assets are recorded through earnings. | |||
Our businesses evaluate property, plant and equipment for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable or the assets are being held for sale. Upon the occurrence of a triggering event, we assess whether the estimated undiscounted cash flows expected from the use of the asset and the residual value from the ultimate disposal of the asset exceeds the carrying value. If the carrying value exceeds the estimated recoverable amounts, we write down the asset to the estimated fair value. Impairment losses are included in earnings, except with respect to impairment of assets of our regulated utility and energy subsidiaries when the impacts of regulation are considered in evaluating the carrying value of regulated assets. | |||
(j) | Goodwill and other intangible assets | ||
Goodwill represents the excess of the acquisition price of a business over the fair value of identifiable net assets of that business. We evaluate goodwill for impairment at least annually. When evaluating goodwill for impairment, we estimate the fair value of the reporting unit. There are several methods that may be used to estimate a reporting unit’s fair value, including market quotations, asset and liability fair values and other valuation techniques, including, but not limited to, discounted projected future net earnings or net cash flows and multiples of earnings. If the carrying amount of a reporting unit, including goodwill, exceeds the estimated fair value, then the identifiable assets and liabilities of the reporting unit are estimated at fair value as of the current testing date. The excess of the estimated fair value of the reporting unit over the current estimated fair value of net assets establishes the implied value of goodwill. The excess of the recorded goodwill over the implied goodwill value is charged to earnings as an impairment loss. Significant judgment is required in estimating the fair value of the reporting unit and performing goodwill impairment tests. | |||
Intangible assets with definite lives are amortized based on the estimated pattern in which the economic benefits are expected to be consumed or on a straight-line basis over their estimated economic lives. Intangible assets with definite lives are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Intangible assets with indefinite lives are tested for impairment at least annually and when events or changes in circumstances indicate that it is more likely than not that the asset is impaired. | |||
(k) | Revenue recognition | ||
Insurance premiums for prospective property/casualty and health insurance and reinsurance are earned over the loss exposure or coverage period in proportion to the level of protection provided. In most cases, premiums are recognized as revenues ratably over the term of the contract with unearned premiums computed on a monthly or daily pro-rata basis. Premiums for retroactive property/casualty reinsurance policies are earned at the inception of the contracts, as all of the underlying loss events covered by these policies occurred in the past. Premiums for life reinsurance and annuity contracts are earned when due. Premiums earned are stated net of amounts ceded to reinsurers. For contracts containing experience rating provisions, premiums earned reflect estimated loss experience under the contracts. | |||
Sales revenues derive from the sales of manufactured products and goods acquired for resale. Revenues from sales are recognized upon passage of title to the customer, which generally coincides with customer pickup, product delivery or acceptance, depending on terms of the sales arrangement. | |||
Service revenues are recognized as the services are performed. Services provided pursuant to a contract are either recognized over the contract period or upon completion of the elements specified in the contract depending on the terms of the contract. Revenues related to the sales of fractional ownership interests in aircraft are recognized ratably over the term of the related management services agreement as the transfer of ownership interest in the aircraft is inseparable from the management services agreement. | |||
Leasing revenue is generally recognized ratably over the term of the lease, as a substantial portion of our leases are classified as operating leases. | |||
Operating revenues from the distribution and sale of electricity and natural gas to customers are recognized when the services are rendered or the energy is delivered. Revenues include unbilled as well as billed amounts. Rates charged are generally subject to federal and state regulation or established under contractual arrangements. When preliminary rates are permitted to be billed prior to final approval by the applicable regulator, certain revenue collected may be subject to refund and a liability for estimated refunds is recorded. | |||
Railroad transportation revenues are recognized based upon the proportion of service provided as of the balance sheet date. Customer incentives, which are primarily provided for shipping a specified cumulative volume or shipping to/from specific locations, are recorded as pro-rata reductions to revenue based on actual or projected future customer shipments. When using projected shipments, we rely on historic trends as well as economic and other indicators to estimate the recorded liability for customer incentives. | |||
Interest income from investments in fixed maturity securities and loans is earned under the interest method, which reflects accrual of interest due under terms of the agreements as well as amortization of acquisition premiums, accruable discounts and capitalized loan origination fees, as applicable. Dividends from equity securities are recognized when earned, which is usually on the ex-dividend date. | |||
(l) | Losses and loss adjustment expenses | ||
Liabilities for losses and loss adjustment expenses are established under property/casualty insurance and reinsurance contracts issued by our insurance subsidiaries for losses that have occurred as of the balance sheet date. The liabilities for losses and loss adjustment expenses are recorded at the estimated ultimate payment amounts, except that amounts arising from certain workers’ compensation reinsurance business are discounted. Estimated ultimate payment amounts are based upon (1) reports of losses from policyholders, (2) individual case estimates and (3) estimates of incurred but not reported losses. | |||
Provisions for losses and loss adjustment expenses are charged to earnings after deducting amounts recovered and estimates of recoverable amounts under ceded reinsurance contracts. Reinsurance contracts do not relieve the ceding company of its obligations to indemnify policyholders with respect to the underlying insurance and reinsurance contracts. | |||
The estimated liabilities of workers’ compensation claims assumed under certain reinsurance contracts are discounted based upon an annual discount rate of 4.5% for claims arising prior to January 1, 2003 and 1% for claims arising thereafter, consistent with discount rates used under insurance statutory accounting principles. The change in such reserve discounts, including the periodic discount accretion is included in earnings as a component of losses and loss adjustment expenses. | |||
(m) | Deferred charges reinsurance assumed | ||
The excess, if any, of the estimated ultimate liabilities for claims and claim settlement costs over the premiums earned with respect to retroactive property/casualty reinsurance contracts is recorded as a deferred charge at inception of the contract. Deferred charges are subsequently amortized using the interest method over the expected claim settlement periods. Changes to the estimated timing or amount of loss payments produce changes in periodic amortization. Changes in such estimates are applied retrospectively and are included in insurance losses and loss adjustment expenses in the period of the change. The unamortized deferred charge balances are included in other assets and were $7,772 million and $4,359 million at December 31, 2014 and 2013, respectively. | |||
(n) | Insurance policy acquisition costs | ||
Incremental costs that are directly related to the successful acquisition of insurance contracts are capitalized, subject to ultimate recoverability, and are subsequently amortized to underwriting expenses as the related premiums are earned. Direct incremental acquisition costs include commissions, premium taxes, and certain other costs associated with successful efforts. All other underwriting costs are expensed as incurred. The recoverability of capitalized insurance policy acquisition costs generally reflects anticipation of investment income. The unamortized balances are included in other assets and were $1,722 million and $1,601 million at December 31, 2014 and 2013, respectively. | |||
(p) | Life, annuity and health insurance benefits | ||
Liabilities for insurance benefits under life contracts are computed based upon estimated future investment yields, expected mortality, morbidity, and lapse or withdrawal rates and reflects estimates for future premiums and expenses under the contracts. These assumptions, as applicable, also include a margin for adverse deviation and may vary with the characteristics of the contract’s date of issuance, policy duration and country of risk. The interest rate assumptions used may vary by contract or jurisdiction and generally range from less than 1% to 7%. Annuity contracts are discounted based on the implicit rate of return as of the inception of the contracts and such interest rates generally range from less than 1% to 7%. | |||
(q) | Regulated utilities and energy businesses | ||
Certain energy subsidiaries prepare their financial statements in accordance with authoritative guidance for regulated operations, reflecting the economic effects of regulation from the ability to recover certain costs from customers and the requirement to return revenues to customers in the future through the regulated rate-setting process. Accordingly, certain costs are deferred as regulatory assets and obligations are accrued as regulatory liabilities. These assets and liabilities will be amortized into operating expenses and revenues over various future periods. | |||
Regulatory assets and liabilities are continually assessed for probable future inclusion in regulatory rates by considering factors such as applicable regulatory or legislative changes and recent rate orders received by other regulated entities. If future inclusion in regulatory rates ceases to be probable, the amount no longer probable of inclusion in regulatory rates is charged or credited to earnings (or other comprehensive income, if applicable) or returned to customers. At December 31, 2014, regulatory assets were $4,253 million and regulatory liabilities were $2,832 million. At December 31, 2013, regulatory assets were $3,515 million and regulatory liabilities were $2,665 million. Regulatory assets and liabilities are components of other assets and other liabilities of utilities and energy businesses. | |||
(r) | Foreign currency | ||
The accounts of our non-U.S. based subsidiaries are measured, in most instances, using the local currencies of the subsidiaries as the functional currencies. Revenues and expenses of these businesses are generally translated into U.S. Dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating the financial statements of foreign-based operations are included in shareholders’ equity as a component of accumulated other comprehensive income. Gains and losses arising from transactions denominated in a currency other than the functional currency of the reporting entity are included in earnings. | |||
(s) | Income taxes | ||
Berkshire files a consolidated federal income tax return in the United States, which includes our eligible subsidiaries. In addition, we file income tax returns in state, local and foreign jurisdictions as applicable. Provisions for current income tax liabilities are calculated and accrued on income and expense amounts expected to be included in the income tax returns for the current year. Income taxes reported in earnings also include deferred income tax provisions. | |||
Deferred income taxes are calculated under the liability method. Deferred income tax assets and liabilities are computed on differences between the financial statement bases and tax bases of assets and liabilities at the enacted tax rates. Changes in deferred income tax assets and liabilities that are associated with components of other comprehensive income are charged or credited directly to other comprehensive income. Otherwise, changes in deferred income tax assets and liabilities are included as a component of income tax expense. The effect on deferred income tax assets and liabilities attributable to changes in enacted tax rates are charged or credited to income tax expense in the period of enactment. Valuation allowances are established for certain deferred tax assets where realization is not likely. | |||
Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions, in our judgment, do not meet a “more-likely-than-not” threshold based on the technical merits of the positions. Estimated interest and penalties related to uncertain tax positions are generally included as a component of income tax expense. | |||
(t) | New accounting pronouncements adopted in 2014 | ||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date.” ASU 2013-04 requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date as the amount the reporting entity agreed to pay plus additional amounts the reporting entity expects to pay on behalf of its co-obligors. We adopted ASU 2013-04 on January 1, 2014. | |||
In January 2014, the FASB issued ASU 2014-01 “Accounting for Investments in Qualified Affordable Housing Projects.” ASU 2014-01 permits an entity to elect the proportional amortization method of accounting for limited liability investments in qualified affordable housing projects if certain criteria are met. Under the proportional amortization method, the investment is amortized in proportion to the tax benefits received and the amortization charge is reported as a component of income tax expense. We adopted ASU 2014-01 for eligible investments as of January 1, 2014. The adoption of ASU 2013-04 and ASU 2014-01 had an immaterial effect on our Consolidated Financial Statements. | |||
(u) | New accounting pronouncements to be adopted subsequent to December 31, 2014 | ||
In April 2014, the FASB issued ASU 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 provides a narrower definition of discontinued operations than under previous U.S. GAAP. ASU 2014-08 requires that a disposal of components of an entity (or groups of components) be reported as discontinued operations if the disposal represents a strategic shift that will have a major effect on the reporting entity’s operations and financial results. ASU 2014-08 is effective prospectively for disposals (or classifications of businesses as held-for-sale) of components of an entity that occur in annual or interim periods beginning after December 15, 2014. We do not expect that the adoption of ASU 2014-08 will have a material effect on our Consolidated Financial Statements. | |||
In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers.” ASU 2014-09 applies to most contracts with customers. However, insurance and leasing contracts are excluded from the scope of this pronouncement. ASU 2014-09 prescribes a five step framework in accounting for revenues from contracts, including (a) identification of the contract, (b) identification of the performance obligations under the contract, (c) determination of the transaction price, (d) allocation of the transaction price to the identified performance obligations and (e) recognition of revenues as the identified performance obligations are satisfied. ASU 2014-09 also prescribes additional disclosures and financial statement presentations. ASU 2014-09 is effective for public entities in annual reporting periods beginning after December 15, 2016. Early application is not permitted. ASU 2014-09 may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. We are currently evaluating the effect the adoption of this standard will have on our Consolidated Financial Statements. |
Significant_business_acquisiti
Significant business acquisitions | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Significant business acquisitions | -2 | Significant business acquisitions | |||||||
Our long-held acquisition strategy is to acquire businesses at sensible prices that have consistent earning power, good returns on equity and able and honest management. | |||||||||
On December 19, 2013, we acquired NV Energy, Inc. (“NV Energy”) through our 89.9% owned subsidiary, Berkshire Hathaway Energy Company (“BHE”), for cash consideration of approximately $5.6 billion. NV Energy is an energy holding company serving approximately 1.2 million electric and 0.2 million retail natural gas customers in Nevada. NV Energy’s principal operating subsidiaries, Nevada Power Company and Sierra Pacific Power Company, are regulated utilities. NV Energy’s financial results are included in our Consolidated Financial Statements beginning on the acquisition date. | |||||||||
On December 1, 2014, BHE acquired AltaLink, L.P. (“AltaLink”) for a cash purchase price of C$3.1 billion (approximately $2.7 billion). AltaLink is a regulated electric transmission-only business, headquartered in Calgary, Alberta. AltaLink’s financial results are included in our Consolidated Financial Statements beginning on the acquisition date. | |||||||||
NV Energy’s and AltaLink’s assets acquired, liabilities assumed and residual goodwill at their respective acquisition dates are summarized as follows (in millions). | |||||||||
AltaLink | NV Energy | ||||||||
as of | as of | ||||||||
December 1, | December 19, | ||||||||
2014 | 2013 | ||||||||
Property, plant and equipment | $ | 5,610 | $ | 9,511 | |||||
Goodwill | 1,700 | 2,369 | |||||||
Other assets, including cash and cash equivalents | 294 | 2,506 | |||||||
Assets acquired | $ | 7,604 | $ | 14,386 | |||||
Accounts payable, accruals and other liabilities | $ | 1,025 | $ | 3,456 | |||||
Notes payable and other borrowings | 3,851 | 5,334 | |||||||
Liabilities assumed | $ | 4,876 | $ | 8,790 | |||||
Net assets acquired | $ | 2,728 | $ | 5,596 | |||||
On January 1, 2014, we acquired the beverage dispensing equipment manufacturing and merchandising operations of British engineering company, IMI plc for approximately $1.12 billion. On February 25, 2014, we acquired 100% of the outstanding common stock of Phillips Specialty Products Inc. (“PSPI”) from Phillips 66 (“PSX”) in exchange for 17,422,615 shares of PSX common stock with an aggregate fair value of $1.35 billion. PSPI, which has been renamed as Lubrizol Specialty Products Inc. (“LSPI”), provides flow improver products to customers worldwide. Assets of PSPI included cash of approximately $450 million. On June 30, 2014, we acquired WPLG, Inc. (“WPLG”) from Graham Holding Company (“GHC”) in exchange for 1,620,190 shares of GHC common stock with an aggregate fair value of $1.13 billion. At the date of the acquisition, the assets of WPLG, which operates a Miami, Florida, ABC affiliated television station, included 2,107 shares of Berkshire Hathaway Class A common stock, 1,278 shares of Berkshire Hathaway Class B common stock and cash of $328 million. At their respective acquisition dates, the aggregate fair value of the identified net assets related to these acquisitions was approximately $2.2 billion and the residual goodwill was approximately $1.4 billion. | |||||||||
The following table sets forth certain unaudited pro forma consolidated earnings data for 2014 and 2013, as if the acquisitions discussed previously were consummated on the same terms at the beginning of the year preceding their respective acquisition dates (in millions, except per share amounts). | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Revenues | $ | 195,298 | $ | 186,664 | |||||
Net earnings attributable to Berkshire Hathaway shareholders | 19,975 | 19,845 | |||||||
Net earnings per equivalent Class A common share attributable to Berkshire Hathaway shareholders | 12,154 | 12,074 | |||||||
During the last three years, we also completed several smaller-sized business acquisitions, most of which were considered as “bolt-on” acquisitions to several of our existing business operations. Aggregate consideration paid for these other business acquisitions was approximately $1.8 billion in 2014; $1.1 billion in 2013; and $3.2 billion in 2012, which included $438 million for entities that develop, construct and subsequently operate renewable energy generation facilities. We do not believe that these acquisitions were material, individually or in the aggregate, to our Consolidated Financial Statements. |
Investments_in_fixed_maturity_
Investments in fixed maturity securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments in fixed maturity securities | -3 | Investments in fixed maturity securities | |||||||||||||||||||||||
Investments in securities with fixed maturities as of December 31, 2014 and 2013 are summarized by type below (in millions). | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies | $ | 2,921 | $ | 14 | $ | (5 | ) | $ | 2,930 | ||||||||||||||||
States, municipalities and political subdivisions | 1,820 | 93 | (1 | ) | 1,912 | ||||||||||||||||||||
Foreign governments | 12,023 | 373 | (126 | ) | 12,270 | ||||||||||||||||||||
Corporate bonds | 7,704 | 1,072 | (5 | ) | 8,771 | ||||||||||||||||||||
Mortgage-backed securities | 1,555 | 202 | (4 | ) | 1,753 | ||||||||||||||||||||
$ | 26,023 | $ | 1,754 | $ | (141 | ) | $ | 27,636 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies | $ | 2,650 | $ | 16 | $ | (8 | ) | $ | 2,658 | ||||||||||||||||
States, municipalities and political subdivisions | 2,221 | 129 | (5 | ) | 2,345 | ||||||||||||||||||||
Foreign governments | 11,001 | 182 | (110 | ) | 11,073 | ||||||||||||||||||||
Corporate bonds | 10,062 | 1,190 | (15 | ) | 11,237 | ||||||||||||||||||||
Mortgage-backed securities | 1,830 | 218 | (8 | ) | 2,040 | ||||||||||||||||||||
$ | 27,764 | $ | 1,735 | $ | (146 | ) | $ | 29,353 | |||||||||||||||||
Investments in fixed maturity securities are reflected in our Consolidated Balance Sheets as follows (in millions). | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Insurance and other | $ | 27,397 | $ | 28,785 | |||||||||||||||||||||
Finance and financial products | 239 | 568 | |||||||||||||||||||||||
$ | 27,636 | $ | 29,353 | ||||||||||||||||||||||
Investments in foreign government securities include securities issued by national and provincial government entities as well as instruments that are unconditionally guaranteed by such entities. As of December 31, 2014, approximately 93% of foreign government holdings were rated AA or higher by at least one of the major rating agencies. Approximately 77% of foreign government holdings were issued or guaranteed by the United Kingdom, Germany, Australia, Canada or The Netherlands. Unrealized losses on all fixed maturity investments in a continuous unrealized loss position for more than twelve consecutive months were $15 million as of December 31, 2014 and $26 million as of December 31, 2013. | |||||||||||||||||||||||||
The amortized cost and estimated fair value of securities with fixed maturities at December 31, 2014 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 in one | Due after one | Due after five | Due after | Mortgage- | Total | ||||||||||||||||||||
year or less | year through | years through | ten years | backed | |||||||||||||||||||||
five years | ten years | securities | |||||||||||||||||||||||
Amortized cost | $ | 7,650 | $ | 11,341 | $ | 2,782 | $ | 2,695 | $ | 1,555 | $ | 26,023 | |||||||||||||
Fair value | 7,585 | 11,994 | 3,009 | 3,295 | 1,753 | 27,636 |
Investments_in_equity_securiti
Investments in equity securities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments in equity securities | -4 | Investments in equity securities | |||||||||||||||
Investments in equity securities as of December 31, 2014 and 2013 are summarized based on the primary industry of the investee in the table below (in millions). | |||||||||||||||||
Cost Basis | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
December 31, 2014 * | |||||||||||||||||
Banks, insurance and finance | $ | 22,495 | $ | 33,170 | $ | — | $ | 55,665 | |||||||||
Consumer products | 6,951 | 18,389 | (1 | ) | 25,339 | ||||||||||||
Commercial, industrial and other | 28,924 | 8,578 | (1,036 | ) | 36,466 | ||||||||||||
$ | 58,370 | $ | 60,137 | $ | (1,037 | ) | $ | 117,470 | |||||||||
* | Approximately 59% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company—$14.1 billion; Wells Fargo & Company—$26.5 billion; International Business Machines Corporation—$12.3 billion; and The Coca-Cola Company—$16.9 billion). | ||||||||||||||||
Cost Basis | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
December 31, 2013 * | |||||||||||||||||
Banks, insurance and finance | $ | 22,420 | $ | 28,021 | $ | — | $ | 50,441 | |||||||||
Consumer products | 7,082 | 17,854 | — | 24,936 | |||||||||||||
Commercial, industrial and other | 29,949 | 12,322 | (143 | ) | 42,128 | ||||||||||||
$ | 59,451 | $ | 58,197 | $ | (143 | ) | $ | 117,505 | |||||||||
* | Approximately 55% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company—$13.8 billion; Wells Fargo & Company—$21.9 billion; International Business Machines Corporation—$12.8 billion; and The Coca-Cola Company—$16.5 billion). | ||||||||||||||||
As of December 31, 2014 and 2013, we concluded that there were no unrealized losses that were other than temporary. Our conclusions were based on: (a) our ability and intent to hold the securities to recovery; (b) our assessment that the underlying business and financial condition of each of these issuers was favorable; (c) our opinion that the relative price declines were not significant; and (d) our belief that market prices will increase to and exceed our cost. As of December 31, 2014 and 2013, unrealized losses on equity securities in a continuous unrealized loss position for more than twelve consecutive months were $65 million and $52 million, respectively. | |||||||||||||||||
Investments in equity securities are reflected in our Consolidated Balance Sheets as follows (in millions). | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Insurance and other | $ | 115,529 | $ | 115,464 | |||||||||||||
Railroad, utilities and energy * | 881 | 1,103 | |||||||||||||||
Finance and financial products | 1,060 | 938 | |||||||||||||||
$ | 117,470 | $ | 117,505 | ||||||||||||||
* | Included in other assets. |
Other_investments
Other investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Other investments | -5 | Other investments | |||||||||||||||
Other investments include preferred stock of Wm. Wrigley Jr. Company (“Wrigley”), The Dow Chemical Company (“Dow”) and Bank of America Corporation (“BAC”), as well as warrants to purchase common stock of BAC and our investments in Restaurant Brands International, Inc. (“RBI”). Other investments are classified as available-for-sale and carried at fair value and are shown in our Consolidated Balance Sheets as follows (in millions). | |||||||||||||||||
Cost | Fair Value | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Insurance and other | $ | 9,970 | $ | 6,970 | $ | 16,346 | $ | 12,334 | |||||||||
Finance and financial products | 3,052 | 3,052 | 5,978 | 5,617 | |||||||||||||
$ | 13,022 | $ | 10,022 | $ | 22,324 | $ | 17,951 | ||||||||||
In 2008, we acquired $2.1 billion liquidation amount of Wrigley preferred stock in conjunction with the Mars Incorporated (“Mars”) acquisition of Wrigley. The Wrigley preferred stock is entitled to dividends at a rate of 5% per annum and is subject to certain put and call arrangements in 2016 and then annually beginning in 2021. The redemption amount will be based upon the earnings of Wrigley. | |||||||||||||||||
In 2009, we acquired 3,000,000 shares of Series A Cumulative Convertible Perpetual Preferred Stock of Dow (“Dow Preferred”) for a cost of $3 billion. Each share of the Dow Preferred is convertible into 24.201 shares of Dow common stock (equivalent to a conversion price of $41.32 per share). Beginning in April 2014, Dow has the option to cause some or all of the Dow Preferred to be converted into Dow common stock at the then applicable conversion rate, if the closing price on the New York Stock Exchange of Dow’s common stock price exceeds $53.72 per share for any 20 trading days within a period of 30 consecutive trading days ending on the day before Dow exercises its option. The Dow Preferred is entitled to dividends at a rate of 8.5% per annum. | |||||||||||||||||
In 2011, we acquired 50,000 shares of 6% Cumulative Perpetual Preferred Stock of BAC (“BAC Preferred”) and warrants to purchase 700,000,000 shares of common stock of BAC (“BAC Warrants”) for a combined cost of $5 billion. When issued, the BAC Preferred was redeemable at any time by BAC at a price of $105,000 per share ($5.25 billion in aggregate) and dividends were payable on a cumulative basis. At the end of 2013, Berkshire agreed to a proposed amendment to the BAC Preferred and on May 7, 2014, BAC’s common stock shareholders approved the amendment. Pursuant to the amendment, the BAC Preferred may not be redeemed at the option of BAC before May 7, 2019 and dividends payable on the BAC Preferred are no longer cumulative. The BAC Warrants expire in 2021 and are exercisable for an additional aggregate cost of $5 billion ($7.142857/share). | |||||||||||||||||
On December 12, 2014, we acquired Class A 9% Cumulative Compounding Perpetual Preferred Shares of RBI having a stated value of $3 billion (“RBI Preferred”) and common stock of RBI for an aggregate purchase price of $3 billion. RBI, domiciled in Canada, is a newly formed entity that is the ultimate parent company of Burger King and Tim Hortons. As of the acquisition date, our combined investment in RBI possessed approximately 14.4% of the voting interests of RBI. The RBI Preferred is entitled to dividends on a cumulative basis of 9% per annum plus an additional amount that is intended to produce an after-tax yield to Berkshire as if the dividends were paid by a U.S. based company. |
Investments_in_HJ_Heinz_Holdin
Investments in H.J. Heinz Holding Corporation | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Investments in H.J. Heinz Holding Corporation | -6 | Investments in H.J. Heinz Holding Corporation | |||||||
On June 7, 2013, Berkshire and an affiliate of the global investment firm 3G Capital (such affiliate, “3G”), through a newly formed holding company, H.J. Heinz Holding Corporation (“Heinz Holding”), acquired H.J. Heinz Company (“Heinz”). Berkshire and 3G each made equity investments in Heinz Holding, which, together with debt financing obtained by Heinz Holding, was used to acquire Heinz for approximately $23.25 billion in the aggregate. | |||||||||
Heinz is one of the world’s leading marketers and producers of healthy, convenient and affordable foods specializing in ketchup, sauces, meals, soups, snacks and infant nutrition. Heinz is a global family of leading branded products, including Heinz® Ketchup, sauces, soups, beans, pasta, infant foods, Ore-Ida® potato products, Weight Watchers® Smart Ones® entrées and T.G.I. Friday’s® snacks. | |||||||||
Berkshire’s investments in Heinz Holding consist of 425 million shares of common stock, warrants to acquire approximately 46 million additional shares of common stock, and cumulative compounding preferred stock (“Preferred Stock”) with a liquidation preference of $8 billion. The aggregate cost of these investments was $12.25 billion. 3G acquired 425 million shares of Heinz Holding common stock for $4.25 billion. In addition, Heinz Holding reserved 39.6 million shares of common stock for issuance under stock options. | |||||||||
The Preferred Stock possesses no voting rights except as required by law or for certain matters specified in the Heinz Holding charter. The Preferred Stock is entitled to dividends at 9% per annum whether or not declared, is senior in priority to the common stock and is callable after June 7, 2016 at the liquidation value plus an applicable premium and any accrued and unpaid dividends. Under the Heinz Holding charter and a shareholders’ agreement entered into as of the acquisition date (the “shareholders’ agreement”), after June 7, 2021, Berkshire can cause Heinz Holding to attempt to sell shares of common stock through public offerings or other issuances (“redemption offerings”), the proceeds of which would be required to be used to redeem any outstanding shares of Preferred Stock. The warrants are exercisable for one cent per share and expire on June 7, 2018. | |||||||||
Berkshire and 3G each own 50% of the outstanding shares of common stock and possess equal voting interests in Heinz Holding. Under the shareholders’ agreement, unless and until Heinz Holding engages in a public offering, Berkshire and 3G each must approve all significant transactions and governance matters involving Heinz Holding and Heinz so long as Berkshire and 3G each continue to hold at least 66% of their initial common stock investments, except for (i) the declaration and payment of dividends on the Preferred Stock, and actions related to a Heinz Holding call of the Preferred Stock, for which Berkshire does not have a vote or approval right, and (ii) redemption offerings and redemptions resulting therefrom, which may only be triggered by Berkshire. No dividends may be paid on the common stock if there are any unpaid dividends on the Preferred Stock. | |||||||||
We are accounting for our investments in Heinz Holding common stock and common stock warrants on the equity method. Accordingly, we included our proportionate share of net earnings attributable to common stockholders and other comprehensive income in our Consolidated Statements of Earnings and Comprehensive Income beginning as of the acquisition date. We account for our investment in Preferred Stock as an equity investment and it is carried at cost in our Consolidated Balance Sheets. Dividends earned in connection with the Preferred Stock and our share of Heinz Holding’s net earnings or loss attributable to common stockholders are included in interest, dividend and other investment income of Insurance and Other in our Consolidated Statements of Earnings. | |||||||||
Summarized consolidated financial information of Heinz Holding and its subsidiaries follows (in millions). | |||||||||
December 28, 2014 | December 29, 2013 | ||||||||
Assets | $ | 36,763 | $ | 38,972 | |||||
Liabilities | 21,077 | 22,429 | |||||||
Fiscal Year ending | June 7, 2013 through | ||||||||
December 28, 2014 | December 29, 2013 | ||||||||
Sales | $ | 10,922 | $ | 6,240 | |||||
Net earnings (loss) | $ | 657 | $ | (77 | ) | ||||
Preferred stock dividends earned by Berkshire | (720 | ) | (408 | ) | |||||
Net earnings (loss) attributable to common stockholders | $ | (63 | ) | $ | (485 | ) | |||
Earnings attributable to Berkshire Hathaway Shareholders * | $ | 687 | $ | 153 | |||||
* | Includes dividends earned and Berkshire’s share of net earnings (loss) attributable to common stockholders. |
Investment_gainslosses
Investment gains/losses | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Investment gains/losses | -7 | Investment gains/losses | |||||||||||
Investment gains/losses, including other-than-temporary impairment (“OTTI”) losses, for each of the three years ending December 31, 2014 are summarized below (in millions). | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Fixed maturity securities— | |||||||||||||
Gross gains from sales and other disposals | $ | 360 | $ | 1,783 | $ | 188 | |||||||
Gross losses from sales and other disposals | (89 | ) | (139 | ) | (354 | ) | |||||||
Equity securities— | |||||||||||||
Gross gains from sales and redemptions | 4,016 | 1,253 | 1,468 | ||||||||||
Gross losses from sales and redemptions | (125 | ) | (62 | ) | (12 | ) | |||||||
OTTI losses | (697 | ) | (228 | ) | (337 | ) | |||||||
Other | 110 | 1,458 | 509 | ||||||||||
$ | 3,575 | $ | 4,065 | $ | 1,462 | ||||||||
Gains from disposals of equity securities in 2014 included non-cash gains of approximately $2.1 billion in the aggregate from the exchanges of PSX common stock in connection with the acquisition of PSPI and of GHC common stock in connection with the acquisition of WPLG. The PSX/PSPI exchange was completed February 25, 2014 and the GHC/WPLG exchange was completed on June 30, 2014. The non-cash gains represented the excess of the respective fair value of the net assets of PSPI and WPLG received over the respective cost basis of the PSX and GHC shares exchanged. | |||||||||||||
In 2008, we acquired $4.4 billion par amount of 11.45% Wrigley subordinated notes due in 2018 in conjunction with the Mars acquisition of Wrigley. In 2013, the subordinated note agreement was amended to permit a repurchase of all of the Wrigley subordinated notes on October 1, 2013 at a price of 115.45% of par. On that date, the subordinated notes were repurchased for $5.08 billion, plus accrued interest and we realized a gain of $680 million. We also realized additional gains from the dispositions and conversions of corporate bonds in 2013. Other investment gains/losses in 2013 included $1.4 billion related to the changes in the valuations of warrants of General Electric Company and The Goldman Sachs Group, which were acquired in 2008 and exercised in October 2013. | |||||||||||||
We record investments in equity and fixed maturity securities classified as available-for-sale at fair value and record the difference between fair value and cost in other comprehensive income. OTTI losses recognized in earnings represent reductions in the cost basis of the investment, but not the fair value. Accordingly, such losses that are included in earnings are generally offset by a credit to other comprehensive income, producing no net effect on shareholders’ equity as of the balance sheet date. In 2014, we recorded an OTTI charge of $678 million related to our investment in equity securities of Tesco PLC. We recorded OTTI losses on bonds issued by Texas Competitive Electric Holdings of $228 million in 2013 and $337 million in 2012. |
Receivables
Receivables | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables | -8 | Receivables | |||||||
Receivables of insurance and other businesses are comprised of the following (in millions). | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Insurance premiums receivable | $ | 7,914 | $ | 7,474 | |||||
Reinsurance recoverable on unpaid losses | 3,116 | 3,055 | |||||||
Trade and other receivables | 11,133 | 10,111 | |||||||
Allowances for uncollectible accounts | (311 | ) | (360 | ) | |||||
$ | 21,852 | $ | 20,280 | ||||||
Loans and finance receivables of finance and financial products businesses are summarized as follows (in millions). | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Loans and finance receivables before allowances and discounts | $ | 13,150 | $ | 13,576 | |||||
Allowances for uncollectible loans | (303 | ) | (344 | ) | |||||
Unamortized acquisition discounts | (281 | ) | (406 | ) | |||||
$ | 12,566 | $ | 12,826 | ||||||
Loans and finance receivables are predominantly installment loans originated or acquired by our manufactured housing business. Provisions for loan losses for 2014 and 2013 were $173 million and $249 million, respectively. Loan charge-offs, net of recoveries, were $214 million in 2014 and $266 million in 2013. At December 31, 2014, approximately 97% of the loan balances were evaluated collectively for impairment. As a part of the evaluation process, credit quality indicators are reviewed and loans are designated as performing or non-performing. At December 31, 2014, approximately 98% of the loan balances were determined to be performing and approximately 94% of the loan balances were current as to payment status. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories | -9 | Inventories | |||||||
Inventories are comprised of the following (in millions). | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,881 | $ | 1,755 | |||||
Work in process and other | 850 | 842 | |||||||
Finished manufactured goods | 3,333 | 3,206 | |||||||
Goods acquired for resale | 4,172 | 4,057 | |||||||
$ | 10,236 | $ | 9,860 | ||||||
Property_plant_and_equipment
Property, plant and equipment | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, plant and equipment | -10 | Property, plant and equipment | |||||||||
A summary of property, plant and equipment of our insurance and other businesses follows (in millions). | |||||||||||
Ranges of | December 31, | ||||||||||
estimated useful life | 2014 | 2013 | |||||||||
Land | — | $ | 1,171 | $ | 1,098 | ||||||
Buildings and improvements | 2 – 40 years | 6,600 | 6,244 | ||||||||
Machinery and equipment | 3 – 25 years | 16,413 | 15,984 | ||||||||
Furniture, fixtures and other | 2 – 18 years | 3,136 | 2,748 | ||||||||
27,320 | 26,074 | ||||||||||
Accumulated depreciation | (13,167 | ) | (12,451 | ) | |||||||
$ | 14,153 | $ | 13,623 | ||||||||
A summary of property, plant and equipment of our railroad and our utilities and energy businesses follows (in millions). | |||||||||||
Ranges of | December 31, | ||||||||||
estimated useful life | 2014 | 2013 | |||||||||
Railroad: | |||||||||||
Land | — | $ | 5,983 | $ | 5,973 | ||||||
Track structure and other roadway | 5 – 100 years | 42,588 | 40,098 | ||||||||
Locomotives, freight cars and other equipment | 5 – 40 years | 9,493 | 7,551 | ||||||||
Construction in progress | — | 1,292 | 973 | ||||||||
Utilities and energy: | |||||||||||
Utility generation, distribution and transmission system | 5 – 80 years | 64,645 | 57,490 | ||||||||
Interstate pipeline assets | 3 – 80 years | 6,660 | 6,448 | ||||||||
Independent power plants and other assets | 3 – 30 years | 5,035 | 2,516 | ||||||||
Construction in progress | — | 5,194 | 4,217 | ||||||||
140,890 | 125,266 | ||||||||||
Accumulated depreciation | (25,836 | ) | (22,784 | ) | |||||||
$ | 115,054 | $ | 102,482 | ||||||||
Railroad property, plant and equipment includes the land, other roadway, track structure and rolling stock (primarily locomotives and freight cars) of BNSF. The utility generation, distribution and transmission system and interstate pipeline assets are the regulated assets of public utility and natural gas pipeline subsidiaries. | |||||||||||
Assets held for lease and property, plant and equipment of our finance and financial products businesses are summarized below (in millions). | |||||||||||
Ranges of | December 31, | ||||||||||
estimated useful life | 2014 | 2013 | |||||||||
Assets held for lease | 5 – 30 years | $ | 9,810 | $ | 9,509 | ||||||
Land | — | 227 | 233 | ||||||||
Buildings, machinery and other | 3 – 50 years | 1,179 | 1,146 | ||||||||
11,216 | 10,888 | ||||||||||
Accumulated depreciation | (3,179 | ) | (3,188 | ) | |||||||
$ | 8,037 | $ | 7,700 | ||||||||
Assets held for lease includes railcars, intermodal tank containers, cranes, over-the-road trailers, storage units and furniture. As of December 31, 2014, the minimum future lease rentals to be received on assets held for lease (including rail cars leased from others) were as follows (in millions): 2015 – $982; 2016 – $822; 2017 – $643; 2018 – $461; 2019 – $311; and thereafter – $385. |
Goodwill_and_other_intangible_
Goodwill and other intangible assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and other intangible assets | -11 | Goodwill and other intangible assets | |||||||||||||||
A reconciliation of the change in the carrying value of goodwill is as follows (in millions). | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance at beginning of year | $ | 57,011 | $ | 54,523 | |||||||||||||
Acquisitions of businesses | 4,006 | 2,732 | |||||||||||||||
Other, including foreign currency translation | (303 | ) | (244 | ) | |||||||||||||
Balance at end of year | $ | 60,714 | $ | 57,011 | |||||||||||||
Intangible assets other than goodwill are included in other assets and are summarized as follows (in millions). | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Gross carrying | Accumulated | Gross carrying | Accumulated | ||||||||||||||
amount | amortization | amount | amortization | ||||||||||||||
Insurance and other | $ | 13,714 | $ | 4,476 | $ | 11,923 | $ | 3,723 | |||||||||
Railroad, utilities and energy | 2,254 | 1,551 | 2,214 | 1,231 | |||||||||||||
$ | 15,968 | $ | 6,027 | $ | 14,137 | $ | 4,954 | ||||||||||
Trademarks and trade names | $ | 3,117 | $ | 599 | $ | 2,750 | $ | 340 | |||||||||
Patents and technology | 5,425 | 3,133 | 5,173 | 2,626 | |||||||||||||
Customer relationships | 5,603 | 1,768 | 4,690 | 1,518 | |||||||||||||
Other | 1,823 | 527 | 1,524 | 470 | |||||||||||||
$ | 15,968 | $ | 6,027 | $ | 14,137 | $ | 4,954 | ||||||||||
Amortization expense was $1,155 million in 2014, $1,090 million in 2013 and $1,008 million in 2012. Estimated amortization expense over the next five years is as follows (in millions): 2015 – $927; 2016 – $870; 2017 – $856, 2018 – $759 and 2019 – $684. Intangible assets with indefinite lives as of December 31, 2014 and 2013 were $2,586 million and $2,221 million, respectively. |
Derivative_contracts
Derivative contracts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Derivative contracts | -12 | Derivative contracts | |||||||||||||||
Derivative contracts have been entered into primarily by our finance and financial products and our energy businesses. A summary of derivative contract liabilities and notional values as of December 31, 2014 and 2013 related to our finance and financial products businesses follows (in millions). | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Liabilities | Notional | Liabilities | Notional | ||||||||||||||
Value | Value | ||||||||||||||||
Equity index put options | $ | 4,560 | $ | 29,469 | -1 | $ | 4,667 | $ | 32,095 | -1 | |||||||
Credit default | 250 | 7,792 | -2 | 648 | 7,792 | -2 | |||||||||||
Other, principally interest rate and foreign currency | — | 16 | |||||||||||||||
$ | 4,810 | $ | 5,331 | ||||||||||||||
-1 | Represents the aggregate undiscounted amount payable at the contract expiration dates assuming that the value of each index is zero at each contract’s expiration date. | ||||||||||||||||
(2) | Represents the maximum undiscounted future value of losses payable under the contracts, if all underlying issuers default and the residual value of the specified obligations is zero. | ||||||||||||||||
The derivative contracts of our finance and financial products businesses are recorded at fair value and the changes in the fair values of such contracts are reported in earnings as derivative gains/losses. We entered into these contracts with the expectation that the premiums received would exceed the amounts ultimately paid to counterparties. A summary of the derivative gains/losses included in our Consolidated Statements of Earnings in each of the three years ending December 31, 2014 follows (in millions). | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Equity index put options | $ | 108 | $ | 2,843 | $ | 997 | |||||||||||
Credit default | 397 | (213 | ) | 894 | |||||||||||||
Other, principally interest rate and foreign currency | 1 | (22 | ) | 72 | |||||||||||||
$ | 506 | $ | 2,608 | $ | 1,963 | ||||||||||||
The equity index put option contracts were written between 2004 and 2008. These contracts are European style options written on four major equity indexes and will expire between June 2018 and January 2026. Future payments, if any, under any given contract will be required if the underlying index value is below the strike price at the contract expiration date. We received the premiums on these contracts in full at the contract inception dates and therefore have no counterparty credit risk. | |||||||||||||||||
The aggregate intrinsic value (which is the undiscounted liability assuming the contracts are settled based on the index values and foreign currency exchange rates as of the balance sheet date) of our equity index put option contracts was approximately $1.4 billion at December 31, 2014 and $1.7 billion at December 31, 2013. However, these contracts may not be unilaterally terminated or fully settled before the expiration dates. Therefore, the ultimate amount of cash basis gains or losses on these contracts will not be determined for several years. The remaining weighted average life of all contracts was approximately 6 years at December 31, 2014. | |||||||||||||||||
Our remaining credit default contract was written in 2008 and relates to approximately 500 zero-coupon municipal debt issues with maturities ranging from 2019 to 2054. The underlying debt issues have a weighted average maturity of approximately 16.75 years. Pursuant to the contract terms, future loss payments would be required in the event of non-payment by the issuer and non-performance by the primary financial guarantee insurers under their contracts. Payments under our contract, if any, are not required prior to the maturity dates of the underlying obligations. Our premium under this contract was received at the inception of this contract and therefore we have no counterparty credit risk. | |||||||||||||||||
A limited number of our equity index put option contracts contain collateral posting requirements with respect to changes in the fair value or intrinsic value of the contracts and/or a downgrade of Berkshire’s credit ratings. As of December 31, 2014 and 2013, we did not have any collateral posting requirements. If Berkshire’s credit ratings (currently AA from Standard & Poor’s and Aa2 from Moody’s) are downgraded below either A- by Standard & Poor’s or A3 by Moody’s, additional collateral of up to $1.1 billion could be required to be posted. | |||||||||||||||||
Our regulated utility subsidiaries are exposed to variations in the prices of fuel required to generate electricity, wholesale electricity purchased and sold and natural gas supplied for customers. Derivative instruments, including forward purchases and sales, futures, swaps and options, are used to manage a portion of these price risks. Derivative contract assets are included in other assets of railroad, utilities and energy businesses and were $108 million and $87 million as of December 31, 2014 and December 31, 2013, respectively. Derivative contract liabilities are included in accounts payable, accruals and other liabilities of railroad, utilities and energy businesses and were $230 million and $208 million as of December 31, 2014 and December 31, 2013, respectively. Unrealized gains and losses under the contracts of our regulated utilities that are probable of recovery through rates are recorded as regulatory assets or liabilities. Unrealized gains or losses on contracts accounted for as cash flow or fair value hedges are recorded in other comprehensive income or in net earnings, as appropriate. |
Supplemental_cash_flow_informa
Supplemental cash flow information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental cash flow information | -13 | Supplemental cash flow information | |||||||||||
A summary of supplemental cash flow information for each of the three years ending December 31, 2014 is presented in the following table (in millions). | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash paid during the period for: | |||||||||||||
Income taxes | $ | 4,014 | $ | 5,401 | $ | 4,695 | |||||||
Interest: | |||||||||||||
Insurance and other businesses | 360 | 343 | 319 | ||||||||||
Railroad, utilities and energy businesses | 2,487 | 1,958 | 1,829 | ||||||||||
Finance and financial products businesses | 465 | 573 | 653 | ||||||||||
Non-cash investing and financing activities: | |||||||||||||
Liabilities assumed in connection with business acquisitions | 6,334 | 9,224 | 1,751 | ||||||||||
Equity securities exchanged in connection with business acquisitions | 2,478 | — | — | ||||||||||
Borrowings assumed in connection with certain property, plant and equipment additions | — | — | 406 | ||||||||||
Treasury stock acquired in connection with business acquisition | 400 | — | — |
Unpaid_losses_and_loss_adjustm
Unpaid losses and loss adjustment expenses | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Unpaid losses and loss adjustment expenses | -14 | Unpaid losses and loss adjustment expenses | |||||||||||
The liabilities for unpaid losses and loss adjustment expenses are based upon estimates of the ultimate claim costs associated with property and casualty claim occurrences as of the balance sheet dates including estimates for incurred but not reported (“IBNR”) claims. Considerable judgment is required to evaluate claims and establish estimated claim liabilities. A reconciliation of the changes in liabilities for unpaid losses and loss adjustment expenses of our property/casualty insurance subsidiaries for each of the three years ending December 31, 2014 is as follows (in millions). | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Unpaid losses and loss adjustment expenses: | |||||||||||||
Gross liabilities at beginning of year | $ | 64,866 | $ | 64,160 | $ | 63,819 | |||||||
Ceded losses and deferred charges at beginning of year | (7,414 | ) | (6,944 | ) | (7,092 | ) | |||||||
Net balance at beginning of year | 57,452 | 57,216 | 56,727 | ||||||||||
Incurred losses recorded during the year: | |||||||||||||
Current accident year | 27,771 | 23,027 | 22,239 | ||||||||||
Prior accident years | (1,365 | ) | (1,752 | ) | (2,126 | ) | |||||||
Total incurred losses | 26,406 | 21,275 | 20,113 | ||||||||||
Payments during the year with respect to: | |||||||||||||
Current accident year | (11,289 | ) | (10,154 | ) | (9,667 | ) | |||||||
Prior accident years | (11,381 | ) | (10,978 | ) | (10,628 | ) | |||||||
Total payments | (22,670 | ) | (21,132 | ) | (20,295 | ) | |||||||
Foreign currency translation adjustment | (666 | ) | 93 | 186 | |||||||||
Business acquisitions | 67 | — | 485 | ||||||||||
Unpaid losses and loss adjustment expenses: | |||||||||||||
Net balance at end of year | 60,589 | 57,452 | 57,216 | ||||||||||
Ceded losses and deferred charges at end of year | 10,888 | 7,414 | 6,944 | ||||||||||
Gross liabilities at end of year | $ | 71,477 | $ | 64,866 | $ | 64,160 | |||||||
Incurred losses shown in the preceding table represent loss and loss adjustment expenses recorded in earnings in each year. Such losses pertain to loss events occurring during the year (“current accident year”) and losses pertaining to prior year events (“prior accident years”). We present incurred losses related to our retroactive reinsurance contracts based on the inception dates of the contracts. Incurred losses that are attributable to prior accident years reflect the amount of estimation error charged or credited to earnings during the year with respect to estimated liabilities as of the beginning of that year. Incurred losses include the impact of changes in deferred charge assets established in connection with retroactive reinsurance contracts and discounting of certain assumed workers’ compensation liabilities. Deferred charges and loss reserve discounts represent time value discounting of the related ultimate estimated claim liabilities. | |||||||||||||
Incurred losses for prior accident years included charges of $128 million in 2014, $186 million in 2013 and $381 million in 2012 associated with the changes in deferred charges and discounts related to certain workers’ compensation claims. Discounted workers’ compensation liabilities at December 31, 2014 and 2013 were $2,035 million and $2,066 million, respectively, reflecting net discounts of $1,745 million and $1,866 million, respectively. Unamortized deferred charges on retroactive reinsurance contracts were $7,772 million at December 31, 2014, which included $3,428 million from contracts written in 2014, and $4,359 million at December 31, 2013. | |||||||||||||
Before the effects of deferred charges and discounting, we reduced the beginning of the year net losses and loss adjustment expenses liability by $1,493 million in 2014, $1,938 million in 2013 and $2,507 million in 2012. In each of the years, the reduction primarily derived from assumed reinsurance and from primary private passenger auto and medical malpractice insurance. The reductions in liabilities related to assumed reinsurance, excluding retroactive reinsurance, were attributable to generally lower than expected reported losses from ceding companies with respect to both property and casualty coverages. Individual underlying claim counts and average amounts per claim are not utilized by our reinsurance assumed businesses because clients do not consistently provide reliable data in sufficient detail. The reductions in private passenger auto liabilities reflected lower than previously anticipated bodily injury and personal injury protection severities. The reductions in medical malpractice liabilities reflected lower than anticipated claims frequencies and severities. We also increased liabilities under retroactive reinsurance contracts by approximately $825 million in 2014 and $300 million in 2013, primarily due to net increases in estimated asbestos and environmental liabilities. Accident year loss estimates are regularly adjusted to consider emerging loss development patterns of prior years’ losses, whether favorable or unfavorable. | |||||||||||||
We are exposed to environmental, asbestos and other latent injury claims arising from insurance and reinsurance contracts. Liability estimates for environmental and asbestos exposures include case basis reserves and also reflect reserves for legal and other loss adjustment expenses and IBNR reserves. IBNR reserves are based upon our historic general liability exposure base and policy language, previous environmental loss experience and the assessment of current trends of environmental law, environmental cleanup costs, asbestos liability law and judgmental settlements of asbestos liabilities. | |||||||||||||
The liabilities for environmental, asbestos and other latent injury claims and claims expenses, net of reinsurance recoverables, were approximately $14.4 billion at December 31, 2014 and $13.7 billion at December 31, 2013. These liabilities included approximately $12.7 billion at December 31, 2014 and $11.9 billion at December 31, 2013 of liabilities assumed under retroactive reinsurance contracts. Liabilities arising from retroactive contracts with exposure to claims of this nature are generally subject to aggregate policy limits. Thus, our exposure to environmental and other latent injury claims under these contracts is, likewise, limited. We monitor evolving case law and its effect on environmental and other latent injury claims. Changing government regulations, newly identified toxins, newly reported claims, new theories of liability, new contract interpretations and other factors could result in significant increases in these liabilities. Such development could be material to our results of operations. We are unable to reliably estimate the amount of additional net loss or the range of net loss that is reasonably possible. |
Notes_payable_and_other_borrow
Notes payable and other borrowings | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Notes payable and other borrowings | -15 | Notes payable and other borrowings | |||||||||||||||||||
Notes payable and other borrowings are summarized below (in millions). The weighted average interest rates and maturity date ranges shown in the following tables are based on borrowings as of December 31, 2014. | |||||||||||||||||||||
Weighted | December 31, | ||||||||||||||||||||
Average | |||||||||||||||||||||
Interest Rate | 2014 | 2013 | |||||||||||||||||||
Insurance and other: | |||||||||||||||||||||
Issued by Berkshire due 2015-2047 | 2.8 | % | $ | 8,354 | $ | 8,311 | |||||||||||||||
Short-term subsidiary borrowings | 0.6 | % | 839 | 949 | |||||||||||||||||
Other subsidiary borrowings due 2015-2035 | 6.1 | % | 2,701 | 3,180 | |||||||||||||||||
$ | 11,894 | $ | 12,440 | ||||||||||||||||||
Weighted | December 31, | ||||||||||||||||||||
Average | |||||||||||||||||||||
Interest Rate | 2014 | 2013 | |||||||||||||||||||
Railroad, utilities and energy: | |||||||||||||||||||||
Issued by Berkshire Hathaway Energy Company (“BHE”) and its subsidiaries: | |||||||||||||||||||||
BHE senior unsecured debt due 2017-2045 | 5.1 | % | $ | 7,860 | $ | 6,616 | |||||||||||||||
Subsidiary and other debt due 2015-2064 | 5.1 | % | 28,439 | 23,033 | |||||||||||||||||
Issued by BNSF due 2015-2097 | 5 | % | 19,280 | 17,006 | |||||||||||||||||
$ | 55,579 | $ | 46,655 | ||||||||||||||||||
In December 2014, BHE issued $1.5 billion in senior unsecured notes consisting of $350 million of 2.4% notes due in 2020, $400 million of 3.5% notes due in 2025 and $750 million of 4.5% notes due in 2045. BHE subsidiary debt at December 31, 2014, included borrowings of approximately $4.0 billion of AltaLink, which was acquired by BHE on December 1, 2014. BHE subsidiary debt represents amounts issued pursuant to separate financing agreements. Substantially all of the assets of certain BHE subsidiaries are, or may be, pledged or encumbered to support or otherwise secure the debt. These borrowing arrangements generally contain various covenants including, but not limited to, leverage ratios, interest coverage ratios and debt service coverage ratios. BNSF’s borrowings are primarily senior unsecured debentures. In 2014, BNSF issued $3.0 billion of debentures consisting of $500 million of 3.75% debentures due in 2024, $700 million of 3.4% debentures due in 2024, $1.0 billion of 4.9% debentures due in 2044 and $800 million of 4.55% debentures due in 2044. As of December 31, 2014, BNSF and BHE and their subsidiaries were in compliance with all applicable debt covenants. Berkshire does not guarantee any debt, borrowings or lines of credit of BNSF, BHE or their subsidiaries. | |||||||||||||||||||||
Weighted | December 31, | ||||||||||||||||||||
Average | |||||||||||||||||||||
Interest Rate | 2014 | 2013 | |||||||||||||||||||
Finance and financial products: | |||||||||||||||||||||
Issued by Berkshire Hathaway Finance Corporation (“BHFC”) due 2015-2043 | 3.1 | % | $ | 11,178 | $ | 11,178 | |||||||||||||||
Issued by other subsidiaries due 2015-2036 | 5.3 | % | 1,558 | 1,951 | |||||||||||||||||
$ | 12,736 | $ | 13,129 | ||||||||||||||||||
In 2014, BHFC issued $1.15 billion of new senior notes consisting of $1.05 billion of floating rate notes due in 2017 and $100 million of 2% notes due in 2018. These issuances replaced a corresponding aggregate amount of senior notes that matured in 2014. | |||||||||||||||||||||
Our subsidiaries have unused lines of credit and commercial paper capacity aggregating approximately $7.8 billion at December 31, 2014, to support short-term borrowing programs and provide additional liquidity. Such unused lines of credit included about $4.6 billion related to BHE and its subsidiaries. The borrowings of BHFC, a wholly owned finance subsidiary of Berkshire, are fully and unconditionally guaranteed by Berkshire. In addition to BHFC’s borrowings, Berkshire has guaranteed other subsidiary borrowings, aggregating approximately $3.4 billion at December 31, 2014. Generally, Berkshire’s guarantee of a subsidiary’s debt obligation is an absolute, unconditional and irrevocable guarantee for the full and prompt payment when due of all present and future payment obligations. | |||||||||||||||||||||
Principal repayments expected during each of the next five years are as follows (in millions). | |||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||
Insurance and other | $ | 2,676 | $ | 1,094 | $ | 1,428 | $ | 1,088 | $ | 804 | |||||||||||
Railroad, utilities and energy | 3,043 | 1,642 | 1,677 | 4,241 | 2,885 | ||||||||||||||||
Finance and financial products | 1,725 | 1,204 | 2,924 | 2,365 | 107 | ||||||||||||||||
$ | 7,444 | $ | 3,940 | $ | 6,029 | $ | 7,694 | $ | 3,796 | ||||||||||||
Income_taxes
Income taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income taxes | -16 | Income taxes | |||||||||||
The liabilities for income taxes reflected in our Consolidated Balance Sheets are as follows (in millions). | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Currently payable (receivable) | $ | (1,346 | ) | $ | (395 | ) | |||||||
Deferred | 61,936 | 57,442 | |||||||||||
Other | 645 | 692 | |||||||||||
$ | 61,235 | $ | 57,739 | ||||||||||
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are shown below (in millions). | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Investments—unrealized appreciation and cost basis differences | $ | 26,633 | $ | 25,660 | |||||||||
Deferred charges reinsurance assumed | 2,721 | 1,526 | |||||||||||
Property, plant and equipment | 34,618 | 32,409 | |||||||||||
Other | 6,396 | 6,278 | |||||||||||
70,368 | 65,873 | ||||||||||||
Deferred tax assets: | |||||||||||||
Unpaid losses and loss adjustment expenses | (933 | ) | (817 | ) | |||||||||
Unearned premiums | (773 | ) | (682 | ) | |||||||||
Accrued liabilities | (3,575 | ) | (3,398 | ) | |||||||||
Derivative contract liabilities | (206 | ) | (374 | ) | |||||||||
Other | (2,945 | ) | (3,160 | ) | |||||||||
(8,432 | ) | (8,431 | ) | ||||||||||
Net deferred tax liability | $ | 61,936 | $ | 57,442 | |||||||||
We have not established deferred income taxes on accumulated undistributed earnings of certain foreign subsidiaries. Such earnings were approximately $10.0 billion as of December 31, 2014 and are expected to remain reinvested indefinitely. Upon distribution as dividends or otherwise, such amounts would be subject to taxation in the U.S. as well as foreign countries. However, U.S. income tax liabilities would be offset, in whole or in part, by allowable tax credits deriving from income taxes previously paid to foreign jurisdictions. Further, repatriation of all earnings of foreign subsidiaries would be impracticable to the extent that such earnings represent capital needed to support normal business operations in those jurisdictions. As a result, we currently believe that any incremental U.S. income tax liabilities arising from the repatriation of distributable earnings of foreign subsidiaries would not be material. | |||||||||||||
Income tax expense reflected in our Consolidated Statements of Earnings for each of the three years ending December 31, 2014 is as follows (in millions). | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal | $ | 6,447 | $ | 8,155 | $ | 5,695 | |||||||
State | 560 | 258 | 384 | ||||||||||
Foreign | 928 | 538 | 845 | ||||||||||
$ | 7,935 | $ | 8,951 | $ | 6,924 | ||||||||
Current | $ | 3,302 | $ | 5,168 | $ | 4,711 | |||||||
Deferred | 4,633 | 3,783 | 2,213 | ||||||||||
$ | 7,935 | $ | 8,951 | $ | 6,924 | ||||||||
Income tax expense is reconciled to hypothetical amounts computed at the U.S. federal statutory rate for each of the three years ending December 31, 2014 in the table below (in millions). | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Earnings before income taxes | $ | 28,105 | $ | 28,796 | $ | 22,236 | |||||||
Hypothetical amounts applicable to above computed at the U.S. federal statutory rate | $ | 9,837 | $ | 10,079 | $ | 7,783 | |||||||
Dividends received deduction and tax exempt interest | (820 | ) | (514 | ) | (518 | ) | |||||||
State income taxes, less U.S. federal income tax benefit | 364 | 168 | 250 | ||||||||||
Foreign tax rate differences | (252 | ) | (256 | ) | (280 | ) | |||||||
U.S. income tax credits | (333 | ) | (457 | ) | (319 | ) | |||||||
Non-taxable exchange of investments | (679 | ) | — | — | |||||||||
Other differences, net | (182 | ) | (69 | ) | 8 | ||||||||
$ | 7,935 | $ | 8,951 | $ | 6,924 | ||||||||
We file income tax returns in the United States and in state, local and foreign jurisdictions. We are under examination by the taxing authorities in many of these jurisdictions. We have settled tax return liabilities with U.S. federal taxing authorities for years before 2005. The U.S. Internal Revenue Service (“IRS”) has completed the exams of the 2005 though 2009 tax years. Berkshire and the IRS have informally resolved all proposed adjustments in connection with these years with the IRS Appeals Division and we expect formal settlements within the next twelve months. The IRS continues to audit Berkshire’s consolidated U.S. federal income tax returns for the 2010 and 2011 tax years. We are also under audit or subject to audit with respect to income taxes in many state and foreign jurisdictions. It is reasonably possible that certain of our income tax examinations will be settled within the next twelve months. We currently do not believe that the outcome of unresolved issues or claims is likely to be material to our Consolidated Financial Statements. | |||||||||||||
At December 31, 2014 and 2013, net unrecognized tax benefits were $645 million and $692 million, respectively. Included in the balance at December 31, 2014, were $505 million of tax positions that, if recognized, would impact the effective tax rate. The remaining balance in net unrecognized tax benefits principally relates to tax positions where the ultimate recognition is highly certain but there is uncertainty about the timing of such recognition. Because of the impact of deferred tax accounting, the differences in recognition periods would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period. As of December 31, 2014, we do not expect any material changes to the estimated amount of unrecognized tax benefits in the next twelve months. |
Dividend_restrictions_Insuranc
Dividend restrictions - Insurance subsidiaries | 12 Months Ended | |
Dec. 31, 2014 | ||
Dividend restrictions - Insurance subsidiaries | -17 | Dividend restrictions—Insurance subsidiaries |
Payments of dividends by our insurance subsidiaries are restricted by insurance statutes and regulations. Without prior regulatory approval, our principal insurance subsidiaries may declare up to approximately $17 billion as ordinary dividends during 2015. | ||
Combined shareholders’ equity of U.S. based insurance subsidiaries determined pursuant to statutory accounting rules (Surplus as Regards Policyholders) was approximately $129 billion at December 31, 2014 and 2013. Statutory surplus differs from the corresponding amount determined on the basis of GAAP due to differences in accounting for certain assets and liabilities. For instance, deferred charges reinsurance assumed, deferred policy acquisition costs, certain unrealized gains and losses on investments in fixed maturity securities and related deferred income taxes are recognized for GAAP but not for statutory reporting purposes. In addition, under statutory reporting, goodwill is amortized over 10 years, whereas under GAAP, goodwill is not amortized and is subject to periodic tests for impairment. |
Fair_value_measurements
Fair value measurements | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair value measurements | -18 | Fair value measurements | |||||||||||||||||||
Our financial assets and liabilities are summarized below as of December 31, 2014 and December 31, 2013 with fair values shown according to the fair value hierarchy (in millions). The carrying values of cash and cash equivalents, accounts receivable and accounts payable, accruals and other liabilities are considered to be reasonable estimates of their fair values. | |||||||||||||||||||||
Carrying | Fair Value | Quoted | Significant Other | Significant | |||||||||||||||||
Value | Prices | Observable Inputs | Unobservable Inputs | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Investments in fixed maturity securities: | |||||||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies | $ | 2,930 | $ | 2,930 | $ | 2,264 | $ | 666 | $ | — | |||||||||||
States, municipalities and political subdivisions | 1,912 | 1,912 | — | 1,912 | — | ||||||||||||||||
Foreign governments | 12,270 | 12,270 | 7,981 | 4,289 | — | ||||||||||||||||
Corporate bonds | 8,771 | 8,771 | — | 8,763 | 8 | ||||||||||||||||
Mortgage-backed securities | 1,753 | 1,753 | — | 1,753 | — | ||||||||||||||||
Investments in equity securities | 117,470 | 117,470 | 117,424 | 45 | 1 | ||||||||||||||||
Investment in Heinz Holding Preferred Stock | 7,710 | 8,416 | — | — | 8,416 | ||||||||||||||||
Other investments | 22,324 | 22,324 | 329 | — | 21,995 | ||||||||||||||||
Loans and finance receivables | 12,566 | 12,891 | — | 33 | 12,858 | ||||||||||||||||
Derivative contract assets (1) | 108 | 108 | 1 | 13 | 94 | ||||||||||||||||
Derivative contract liabilities: | |||||||||||||||||||||
Railroad, utilities and energy (1) | 230 | 230 | 18 | 169 | 43 | ||||||||||||||||
Finance and financial products: | |||||||||||||||||||||
Equity index put options | 4,560 | 4,560 | — | — | 4,560 | ||||||||||||||||
Credit default | 250 | 250 | — | — | 250 | ||||||||||||||||
Notes payable and other borrowings: | |||||||||||||||||||||
Insurance and other | 11,894 | 12,484 | — | 12,484 | — | ||||||||||||||||
Railroad, utilities and energy | 55,579 | 62,802 | — | 62,802 | — | ||||||||||||||||
Finance and financial products | 12,736 | 13,417 | — | 12,846 | 571 | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Investments in fixed maturity securities: | |||||||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies | $ | 2,658 | $ | 2,658 | $ | 2,184 | $ | 473 | $ | 1 | |||||||||||
States, municipalities and political subdivisions | 2,345 | 2,345 | — | 2,345 | — | ||||||||||||||||
Foreign governments | 11,073 | 11,073 | 7,467 | 3,606 | — | ||||||||||||||||
Corporate bonds | 11,237 | 11,254 | — | 10,187 | 1,067 | ||||||||||||||||
Mortgage-backed securities | 2,040 | 2,040 | — | 2,040 | — | ||||||||||||||||
Investments in equity securities | 117,505 | 117,505 | 117,438 | 60 | 7 | ||||||||||||||||
Investment in Heinz Holding Preferred Stock | 7,710 | 7,971 | — | — | 7,971 | ||||||||||||||||
Other investments | 17,951 | 17,951 | — | — | 17,951 | ||||||||||||||||
Loans and finance receivables | 12,826 | 12,002 | — | 454 | 11,548 | ||||||||||||||||
Derivative contract assets (1) | 87 | 87 | 3 | 15 | 69 | ||||||||||||||||
Derivative contract liabilities: | |||||||||||||||||||||
Railroad, utilities and energy (1) | 208 | 208 | 1 | 198 | 9 | ||||||||||||||||
Finance and financial products: | |||||||||||||||||||||
Equity index put options | 4,667 | 4,667 | — | — | 4,667 | ||||||||||||||||
Credit default | 648 | 648 | — | — | 648 | ||||||||||||||||
Notes payable and other borrowings: | |||||||||||||||||||||
Insurance and other | 12,440 | 12,655 | — | 12,655 | — | ||||||||||||||||
Railroad, utilities and energy | 46,655 | 49,879 | — | 49,879 | — | ||||||||||||||||
Finance and financial products | 13,129 | 13,505 | — | 12,846 | 659 | ||||||||||||||||
(1) | Assets are included in other assets and liabilities are included in accounts payable, accruals and other liabilities. | ||||||||||||||||||||
The fair values of 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 fair values presented are not necessarily indicative of the amounts that could be realized in an actual current market exchange. The use of alternative 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, which are described below. | |||||||||||||||||||||
Level 1 – Inputs represent unadjusted quoted prices for identical assets or liabilities exchanged in active markets. | |||||||||||||||||||||
Level 2 – Inputs include directly or indirectly observable inputs (other than Level 1 inputs) such as quoted prices for similar assets or liabilities exchanged in active or inactive markets; quoted prices for identical assets or liabilities exchanged in inactive markets; other inputs that may be considered in fair value determinations of the assets or liabilities, such as interest rates and yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Pricing evaluations generally reflect discounted expected future cash flows, which incorporate yield curves for instruments with similar characteristics, such as credit ratings, estimated durations and yields for other instruments of the issuer or entities in the same industry sector. | |||||||||||||||||||||
Level 3 – Inputs include unobservable inputs used in the measurement of assets and liabilities. Management is required to use its own assumptions regarding unobservable inputs because there is little, if any, market activity in the assets or liabilities and we may be unable to corroborate the related observable inputs. Unobservable inputs require management to make certain projections and assumptions about the information that would be used by market participants in pricing assets or liabilities. | |||||||||||||||||||||
Reconciliations of assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for each of three years ending December 31, 2014 follow (in millions). | |||||||||||||||||||||
Investments | Investments | Net | |||||||||||||||||||
in fixed | in equity | derivative | |||||||||||||||||||
maturity | securities | contract | |||||||||||||||||||
securities | and other | liabilities | |||||||||||||||||||
investments | |||||||||||||||||||||
Balance at December 31, 2011 | $ | 784 | $ | 11,691 | $ | (9,908 | ) | ||||||||||||||
Gains (losses) included in: | |||||||||||||||||||||
Earnings | — | — | 1,873 | ||||||||||||||||||
Other comprehensive income | 5 | 4,094 | — | ||||||||||||||||||
Regulatory assets and liabilities | — | — | (2 | ) | |||||||||||||||||
Acquisitions, dispositions and settlements | (8 | ) | — | 190 | |||||||||||||||||
Transfers into (out of) Level 3 | (129 | ) | — | — | |||||||||||||||||
Balance at December 31, 2012 | 652 | 15,785 | (7,847 | ) | |||||||||||||||||
Gains (losses) included in: | |||||||||||||||||||||
Earnings | 312 | 522 | 2,652 | ||||||||||||||||||
Other comprehensive income | (14 | ) | 3,177 | (1 | ) | ||||||||||||||||
Regulatory assets and liabilities | — | — | 1 | ||||||||||||||||||
Dispositions and settlements | (578 | ) | (31 | ) | (60 | ) | |||||||||||||||
Transfers into (out of) Level 3 | — | (1,495 | ) | — | |||||||||||||||||
Balance at December 31, 2013 | 372 | 17,958 | (5,255 | ) | |||||||||||||||||
Gains (losses) included in: | |||||||||||||||||||||
Earnings | — | — | 524 | ||||||||||||||||||
Other comprehensive income | 13 | 1,373 | — | ||||||||||||||||||
Regulatory assets and liabilities | — | — | 5 | ||||||||||||||||||
Acquisitions | — | 3,000 | 1 | ||||||||||||||||||
Dispositions and settlements | (2 | ) | — | 1 | |||||||||||||||||
Transfers into (out of) Level 3 | (375 | ) | (335 | ) | (35 | ) | |||||||||||||||
Balance at December 31, 2014 | $ | 8 | $ | 21,996 | $ | (4,759 | ) | ||||||||||||||
Gains and losses included in earnings are included as components of investment gains/losses, derivative gains/losses and other revenues, as appropriate and are primarily related to changes in the values of derivative contracts and settlement transactions. Gains and losses included in other comprehensive income are included as components of the net change in unrealized appreciation of investments and the reclassification of investment appreciation in earnings, as appropriate in our Consolidated Statements of Comprehensive Income. In 2013, we transferred the fair value measurements of the GS Warrants and GE Warrants out of Level 3 because we concluded that the unobservable inputs were no longer significant. | |||||||||||||||||||||
Quantitative information as of December 31, 2014, with respect to assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) follows (in millions). | |||||||||||||||||||||
Fair value | Principal valuation | Unobservable Inputs | Weighted | ||||||||||||||||||
techniques | Average | ||||||||||||||||||||
Other investments: | |||||||||||||||||||||
Preferred stocks | $ | 14,819 | Discounted cash flow | Expected duration | 7 years | ||||||||||||||||
Discount for transferability | 147 basis points | ||||||||||||||||||||
restrictions and subordination | |||||||||||||||||||||
Common stock warrants | 7,175 | Warrant pricing model | Discount for transferability | 7 | % | ||||||||||||||||
and hedging restrictions | |||||||||||||||||||||
Net derivative liabilities: | |||||||||||||||||||||
Equity index put options | 4,560 | Option pricing model | Volatility | 21 | % | ||||||||||||||||
Credit default municipalities | 250 | Discounted cash flow | Credit spreads | 36 basis points | |||||||||||||||||
Other investments currently consist of preferred stocks and common stock warrants that we acquired in a few relatively large private placement transactions. These investments are subject to contractual restrictions on transferability and/or provisions that prevent us from economically hedging our investments. In applying discounted estimated cash flow techniques in valuing the perpetual preferred stocks, we made assumptions regarding the expected durations of the investments, as the issuers may have the right to redeem or convert these investments. We also made estimates regarding the impact of subordination, as the preferred stocks have a lower priority in liquidation than debt instruments of the issuers, which affected the discount rates used. In valuing the common stock warrants, we used a warrant valuation model. While most of the inputs to the model are observable, we are subject to the aforementioned contractual restrictions and we have applied discounts with respect to such restrictions. Increases or decreases to these inputs would result in decreases or increases to the fair values of the investments. | |||||||||||||||||||||
Our equity index put option and credit default contracts are illiquid and contain contract terms that are not standard in derivatives markets. For example, we are not required to post collateral under most of our contracts and many contracts have relatively long durations. For these and other reasons, we classified these contracts as Level 3. The methods we use to value these contracts are those that we believe market participants would use in determining exchange prices with respect to our contracts. | |||||||||||||||||||||
We value equity index put option contracts based on the Black-Scholes option valuation model. Inputs to this model include current index price, contract duration, dividend and interest rate inputs (including a Berkshire non-performance input) which are observable. However, we believe that the valuation of long-duration options using any model is inherently subjective and, given the lack of observable transactions and prices, acceptable values may be subject to wide ranges. Expected volatility inputs represent our expectations, which consider the remaining duration of each contract and assume that the contracts will remain outstanding until the expiration dates without offsetting transactions occurring in the interim. Increases or decreases in the volatility inputs will produce increases or decreases in the fair values of the liabilities. |
Common_stock
Common stock | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Common stock | -19 | Common stock | |||||||||||||||||||||||
Changes in Berkshire’s issued, treasury and outstanding common stock during the three years ending December 31, 2014 are shown in the table below. | |||||||||||||||||||||||||
Class A, $5 Par Value | Class B, $0.0033 Par Value | ||||||||||||||||||||||||
(1,650,000 shares authorized) | (3,225,000,000 shares authorized) | ||||||||||||||||||||||||
Issued | Treasury | Outstanding | Issued | Treasury | Outstanding | ||||||||||||||||||||
Balance at December 31, 2011 | 938,342 | (98 | ) | 938,244 | 1,069,645,361 | (801,985 | ) | 1,068,843,376 | |||||||||||||||||
Conversions of Class A common stock to Class B common stock and exercises of replacement stock options issued in a business acquisition | (33,814 | ) | — | (33,814 | ) | 53,748,595 | — | 53,748,595 | |||||||||||||||||
Treasury shares acquired | — | (9,475 | ) | (9,475 | ) | — | (606,499 | ) | (606,499 | ) | |||||||||||||||
Balance at December 31, 2012 | 904,528 | (9,573 | ) | 894,955 | 1,123,393,956 | (1,408,484 | ) | 1,121,985,472 | |||||||||||||||||
Conversions of Class A common stock to Class B common stock and exercises of replacement stock options issued in a business acquisition | (35,912 | ) | — | (35,912 | ) | 55,381,136 | — | 55,381,136 | |||||||||||||||||
Balance at December 31, 2013 | 868,616 | (9,573 | ) | 859,043 | 1,178,775,092 | (1,408,484 | ) | 1,177,366,608 | |||||||||||||||||
Conversions of Class A common stock to Class B common stock and exercises of replacement stock options issued in a business acquisition | (30,597 | ) | — | (30,597 | ) | 47,490,158 | — | 47,490,158 | |||||||||||||||||
Treasury shares acquired | — | (2,107 | ) | (2,107 | ) | — | (1,278 | ) | (1,278 | ) | |||||||||||||||
Balance at December 31, 2014 | 838,019 | (11,680 | ) | 826,339 | 1,226,265,250 | (1,409,762 | ) | 1,224,855,488 | |||||||||||||||||
Each Class A common share is entitled to one vote per share. Class B common stock possesses dividend and distribution rights equal to one-fifteen-hundredth (1/1,500) of such rights of Class A common stock. Each Class B common share possesses voting rights equivalent to one-ten-thousandth (1/10,000) of the voting rights of a Class A share. Unless otherwise required under Delaware General Corporation Law, Class A and Class B common shares vote as a single class. Each share of Class A common stock is convertible, at the option of the holder, into 1,500 shares of Class B common stock. Class B common stock is not convertible into Class A common stock. On an equivalent Class A common stock basis, there were 1,642,909 shares outstanding as of December 31, 2014 and 1,643,954 shares outstanding as of December 31, 2013. In addition to our common stock, 1,000,000 shares of preferred stock are authorized, but none are issued and outstanding. | |||||||||||||||||||||||||
Berkshire’s Board of Directors (“Berkshire’s Board”) has approved a common stock repurchase program under which Berkshire may repurchase its Class A and Class B shares at prices no higher than a 20% premium over the book value of the shares. Berkshire may repurchase shares in the open market or through privately negotiated transactions. Berkshire’s Board authorization does not specify a maximum number of shares to be repurchased. However, repurchases will not be made if they would reduce Berkshire’s consolidated cash and cash equivalent holdings below $20 billion. The repurchase program does not obligate Berkshire to repurchase any dollar amount or number of Class A or Class B shares and there is no expiration date to the program. There were no share repurchases under the program in 2014. However, on June 30, 2014, we exchanged approximately 1.62 million shares of GHC common stock for WPLG, whose assets included 2,107 shares of Berkshire Hathaway Class A Common Stock and 1,278 shares of Class B Common Stock. The Berkshire shares are reflected as treasury stock in our Consolidated Financial Statements. |
Accumulated_other_comprehensiv
Accumulated other comprehensive income | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Accumulated other comprehensive income | -20 | Accumulated other comprehensive income | |||||||||||||||||||
A summary of the net changes in after-tax accumulated other comprehensive income attributable to Berkshire Hathaway shareholders for each of the three years ending December 31, 2014 and significant amounts reclassified out of accumulated other comprehensive income for each of the years ending December 31, 2014 and 2013 follows (in millions). | |||||||||||||||||||||
Unrealized | Foreign | Prior service | Other | Accumulated | |||||||||||||||||
appreciation of | currency | and actuarial | other | ||||||||||||||||||
investments, net | translation | gains/losses of | comprehensive | ||||||||||||||||||
defined benefit | income | ||||||||||||||||||||
pension plans | |||||||||||||||||||||
Balance at December 31, 2011 | $ | 19,626 | $ | (383 | ) | $ | (1,589 | ) | $ | — | $ | 17,654 | |||||||||
Other comprehensive income, net | 9,647 | 267 | (21 | ) | (47 | ) | 9,846 | ||||||||||||||
Transactions with noncontrolling interests | (19 | ) | (4 | ) | 9 | 14 | — | ||||||||||||||
9,628 | 263 | (12 | ) | (33 | ) | 9,846 | |||||||||||||||
Balance at December 31, 2012 | 29,254 | (120 | ) | (1,601 | ) | (33 | ) | 27,500 | |||||||||||||
Other comprehensive income, net before reclassifications | 16,379 | 25 | 1,534 | 106 | 18,044 | ||||||||||||||||
Reclassifications from accumulated other comprehensive income | (1,591 | ) | (31 | ) | 114 | 10 | (1,498 | ) | |||||||||||||
Transactions with noncontrolling interests | — | (20 | ) | (1 | ) | — | (21 | ) | |||||||||||||
14,788 | (26 | ) | 1,647 | 116 | 16,525 | ||||||||||||||||
Balance at December 31, 2013 | 44,042 | (146 | ) | 46 | 83 | 44,025 | |||||||||||||||
Other comprehensive income, net before reclassifications | 3,778 | (1,877 | ) | (1,130 | ) | 31 | 802 | ||||||||||||||
Reclassifications from accumulated other comprehensive income | (2,184 | ) | 66 | 45 | (22 | ) | (2,095 | ) | |||||||||||||
1,594 | (1,811 | ) | (1,085 | ) | 9 | (1,293 | ) | ||||||||||||||
Balance at December 31, 2014 | $ | 45,636 | $ | (1,957 | ) | $ | (1,039 | ) | $ | 92 | $ | 42,732 | |||||||||
Reclassifications from other comprehensive income into net earnings are included on the following line items: | |||||||||||||||||||||
Year ending December 31, 2013: | |||||||||||||||||||||
Investment gains/losses: | |||||||||||||||||||||
Insurance and other | $ | (2,382 | ) | $ | — | $ | — | $ | — | $ | (2,382 | ) | |||||||||
Finance and financial products | (65 | ) | — | — | — | (65 | ) | ||||||||||||||
Other | — | (31 | ) | 167 | 17 | 153 | |||||||||||||||
Reclassifications before income taxes | (2,447 | ) | (31 | ) | 167 | 17 | (2,294 | ) | |||||||||||||
Applicable income taxes | (856 | ) | — | 53 | 7 | (796 | ) | ||||||||||||||
$ | (1,591 | ) | $ | (31 | ) | $ | 114 | $ | 10 | $ | (1,498 | ) | |||||||||
Year ending December 31, 2014: | |||||||||||||||||||||
Investment gains/losses: | |||||||||||||||||||||
Insurance and other | $ | (3,288 | ) | $ | — | $ | — | $ | — | $ | (3,288 | ) | |||||||||
Finance and financial products | (72 | ) | — | — | — | (72 | ) | ||||||||||||||
Other | — | 75 | 58 | (39 | ) | 94 | |||||||||||||||
Reclassifications before income taxes | (3,360 | ) | 75 | 58 | (39 | ) | (3,266 | ) | |||||||||||||
Applicable income taxes | (1,176 | ) | 9 | 13 | (17 | ) | (1,171 | ) | |||||||||||||
$ | (2,184 | ) | $ | 66 | $ | 45 | $ | (22 | ) | $ | (2,095 | ) | |||||||||
Pension_plans
Pension plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Pension plans | -21 | Pension plans | |||||||||||||||||||||||
Several of our subsidiaries individually sponsor defined benefit pension plans covering certain employees. Benefits under the plans are generally based on years of service and compensation, although benefits under certain plans are based on years of service and fixed benefit rates. Our subsidiaries may make contributions to the plans to meet regulatory requirements and may also make discretionary contributions. | |||||||||||||||||||||||||
The components of net periodic pension expense for each of the three years ending December 31, 2014 are as follows (in millions). | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Service cost | $ | 230 | $ | 254 | $ | 247 | |||||||||||||||||||
Interest cost | 629 | 547 | 583 | ||||||||||||||||||||||
Expected return on plan assets | (772 | ) | (634 | ) | (610 | ) | |||||||||||||||||||
Amortization of actuarial losses and other | 102 | 225 | 220 | ||||||||||||||||||||||
Net periodic pension expense | $ | 189 | $ | 392 | $ | 440 | |||||||||||||||||||
The accumulated benefit obligation is the actuarial present value of benefits earned based on service and compensation prior to the valuation date. The projected benefit obligation (“PBO”) is the actuarial present value of benefits earned based upon service and compensation prior to the valuation date and, if applicable, includes assumptions regarding future compensation levels. Benefit obligations under qualified U.S. defined benefit pension plans are funded through assets held in trusts. Pension obligations under certain non-U.S. plans and non-qualified U.S. plans are unfunded. The aggregate PBO of non-qualified U.S. plans and non-U.S. plans which are not funded by assets held in trusts was approximately $1.2 billion and $1.0 billion as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Reconciliations of the changes in plan assets and PBOs related to BHE’s pension plans and all other pension plans for each of the two years ending December 31, 2014 are in the following tables (in millions). BHE’s pension plans cover employees of its various regulated subsidiaries. The costs associated with these regulated operations are generally recoverable through the regulated rate making process. | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
BHE | All other | Consolidated | BHE | All other | Consolidated | ||||||||||||||||||||
Benefit obligations | |||||||||||||||||||||||||
Accumulated benefit obligation at end of year | $ | 5,105 | $ | 9,522 | $ | 14,627 | $ | 4,664 | $ | 8,101 | $ | 12,765 | |||||||||||||
PBO at beginning of year | $ | 5,006 | $ | 8,892 | $ | 13,898 | $ | 4,284 | $ | 9,789 | $ | 14,073 | |||||||||||||
Service cost | 60 | 170 | 230 | 46 | 208 | 254 | |||||||||||||||||||
Interest cost | 226 | 403 | 629 | 172 | 375 | 547 | |||||||||||||||||||
Benefits paid | (310 | ) | (524 | ) | (834 | ) | (275 | ) | (505 | ) | (780 | ) | |||||||||||||
Business acquisitions | — | 11 | 11 | 823 | — | 823 | |||||||||||||||||||
Actuarial (gains) or losses and other | 416 | 1,537 | 1,953 | (44 | ) | (975 | ) | (1,019 | ) | ||||||||||||||||
PBO at end of year | $ | 5,398 | $ | 10,489 | $ | 15,887 | $ | 5,006 | $ | 8,892 | $ | 13,898 | |||||||||||||
Plan assets | |||||||||||||||||||||||||
Plan assets at beginning of year | $ | 4,888 | $ | 8,389 | $ | 13,277 | $ | 3,651 | $ | 6,785 | $ | 10,436 | |||||||||||||
Employer contributions | 126 | 122 | 248 | 150 | 274 | 424 | |||||||||||||||||||
Benefits paid | (310 | ) | (524 | ) | (834 | ) | (275 | ) | (505 | ) | (780 | ) | |||||||||||||
Actual return on plan assets | 525 | 338 | 863 | 497 | 1,849 | 2,346 | |||||||||||||||||||
Business acquisitions | — | 1 | 1 | 818 | — | 818 | |||||||||||||||||||
Other | (143 | ) | (46 | ) | (189 | ) | 47 | (14 | ) | 33 | |||||||||||||||
Plan assets at end of year | $ | 5,086 | $ | 8,280 | $ | 13,366 | $ | 4,888 | $ | 8,389 | $ | 13,277 | |||||||||||||
Net funded status – net liability | $ | 312 | $ | 2,209 | $ | 2,521 | $ | 118 | $ | 503 | $ | 621 | |||||||||||||
Weighted average interest rate assumptions used in determining projected benefit obligations and net periodic pension expense were as follows. | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Applicable to pension benefit obligations: | |||||||||||||||||||||||||
Discount rate | 3.8 | % | 4.6 | % | |||||||||||||||||||||
Expected long-term rate of return on plan assets | 6.7 | 6.7 | |||||||||||||||||||||||
Rate of compensation increase | 3.4 | 3.5 | |||||||||||||||||||||||
Discount rate applicable to net periodic pension expense | 4.6 | 4.1 | |||||||||||||||||||||||
Benefits payments expected over the next ten years are as follows (in millions): 2015 – $840; 2016 – $847; 2017 – $861; 2018 – $868; 2019 – $889; and 2020 to 2024 – $4,511. Sponsoring subsidiaries expect to contribute $211 million to defined benefit pension plans in 2015. | |||||||||||||||||||||||||
The net funded status is recognized in our Consolidated Balance Sheets as follows (in millions). | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Accounts payable, accruals and other liabilities | $ | 2,550 | $ | 1,287 | |||||||||||||||||||||
Losses and loss adjustment expenses | 332 | 309 | |||||||||||||||||||||||
Other assets | (361 | ) | (975 | ) | |||||||||||||||||||||
$ | 2,521 | $ | 621 | ||||||||||||||||||||||
Fair value measurements of plan assets as of December 31, 2014 and 2013 follow (in millions). | |||||||||||||||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||||||||||||||
Fair Value | (Level 1) | Other | Unobservable | ||||||||||||||||||||||
Observable | Inputs | ||||||||||||||||||||||||
Inputs | (Level 3) | ||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Cash and equivalents | $ | 482 | $ | 250 | $ | 232 | $ | — | |||||||||||||||||
Equity securities | 7,950 | 7,739 | 211 | — | |||||||||||||||||||||
Government obligations | 811 | 701 | 110 | — | |||||||||||||||||||||
Other fixed maturity securities | 908 | 67 | 841 | — | |||||||||||||||||||||
Investment funds and other | 3,215 | 595 | 2,287 | 333 | |||||||||||||||||||||
$ | 13,366 | $ | 9,352 | $ | 3,681 | $ | 333 | ||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Cash and equivalents | $ | 595 | $ | 355 | $ | 240 | $ | — | |||||||||||||||||
Equity securities | 7,844 | 7,684 | 160 | — | |||||||||||||||||||||
Government obligations | 891 | 607 | 284 | — | |||||||||||||||||||||
Other fixed maturity securities | 901 | 81 | 820 | — | |||||||||||||||||||||
Investment funds and other | 3,046 | 577 | 2,156 | 313 | |||||||||||||||||||||
$ | 13,277 | $ | 9,304 | $ | 3,660 | $ | 313 | ||||||||||||||||||
Refer to Note 18 for a discussion of the three levels in the hierarchy of fair values. Plan assets measured at fair value with significant unobservable inputs (Level 3) for the years ending December 31, 2014 and 2013 consisted primarily of real estate and limited partnership interests. Plan assets are generally invested with the long-term objective of earning amounts sufficient to cover expected benefit obligations, while assuming a prudent level of risk. Allocations may change as a result of changing market conditions and investment opportunities. The expected rates of return on plan assets reflect subjective assessments of expected invested asset returns over a period of several years. Generally, past investment returns are not given significant consideration when establishing assumptions for expected long-term rates of return on plan assets. Actual experience will differ from the assumed rates. | |||||||||||||||||||||||||
A reconciliation of the pre-tax accumulated other comprehensive income (loss) related to defined benefit pension plans for each of the two years ending December 31, 2014 follows (in millions). | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Balance at beginning of year | $ | 86 | $ | (2,516 | ) | ||||||||||||||||||||
Amount included in net periodic pension expense | 55 | 167 | |||||||||||||||||||||||
Gains (losses) current period and other | (1,755 | ) | 2,435 | ||||||||||||||||||||||
Balance at end of year | $ | (1,614 | ) | $ | 86 | ||||||||||||||||||||
Several of our subsidiaries also sponsor defined contribution retirement plans, such as 401(k) or profit sharing plans. Employee contributions to the plans are subject to regulatory limitations and the specific plan provisions. Several of the plans provide that the subsidiary match these contributions up to levels specified in the plans and provide for additional discretionary contributions as determined by management. Employer contributions expensed with respect to these plans were $737 million, $690 million and $637 million for the years ending December 31, 2014, 2013 and 2012, respectively. |
Contingencies_and_Commitments
Contingencies and Commitments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Contingencies and Commitments | -22 | 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. We believe that any liability that may arise as a result of other pending legal actions will not have a material effect on our consolidated financial condition or results of operations. | |||||||||||||||||||||||||
We lease certain manufacturing, warehouse, retail and office facilities as well as certain equipment. Rent expense for all operating leases was $1,484 million in 2014, $1,396 million in 2013 and $1,401 million in 2012. Future minimum rental payments or operating leases having initial or remaining non-cancellable terms in excess of one year are as follows. Amounts are in millions. | |||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | After | Total | |||||||||||||||||||
2019 | |||||||||||||||||||||||||
$1,279 | $ | 1,159 | $ | 1,001 | $ | 847 | $ | 751 | $ | 3,605 | $ | 8,642 | |||||||||||||
Our subsidiaries regularly make commitments in the ordinary course of business to purchase goods and services used in their businesses. The most significant of these commitments relate to our railroad, utilities and energy and fractional aircraft ownership businesses. As of December 31, 2014, future purchase commitments under such arrangements are expected to be paid as follows: $14.6 billion in 2015, $4.9 billion in 2016, $4.2 billion in 2017, $3.6 billion in 2018, $3.0 billion in 2019 and $13.7 billion after 2019. | |||||||||||||||||||||||||
Pursuant to the terms of shareholder agreements with noncontrolling shareholders in our less than wholly-owned subsidiaries, we may be obligated to acquire their equity ownership interests. If we had acquired all outstanding noncontrolling interests as of December 31, 2014, we estimate the cost would have been approximately $4.2 billion. However, the timing and the amount of any such future payments that might be required are contingent on future actions of the noncontrolling owners. | |||||||||||||||||||||||||
During 2012 and 2013, we acquired substantially all of the outstanding common stock of Marmon that was held by noncontrolling shareholders for aggregate consideration of approximately $1.4 billion in 2012 and approximately $1.47 billion in 2013, of which $1.2 billion was paid in March 2014. On April 29, 2013, we acquired all of the common stock of IMC International Metalworking Companies B.V. held by the noncontrolling shareholders for $2.05 billion. These transactions were accounted for as acquisitions of noncontrolling interests. The differences between the consideration paid and the carrying amounts of these noncontrolling interests were recorded as reductions in Berkshire’s shareholders’ equity and aggregated approximately $1.8 billion in 2013 and $700 million in 2012. | |||||||||||||||||||||||||
On October 1, 2014, Berkshire and Van Tuyl Group entered into a definitive agreement pursuant to which Berkshire will acquire a controlling interest in the Van Tuyl Group, the nation’s largest privately-owned auto dealership group and fifth largest among all U.S. auto dealership groups, as well as 100% of related insurance and real estate businesses. The auto dealership group consists of 78 dealers, with locations in 10 states. The transaction is expected to be completed in the first quarter of 2015 and is subject to obtaining approvals from the major auto manufacturers as well as certain customary closing conditions, including various regulatory approvals. | |||||||||||||||||||||||||
On November 13, 2014 Berkshire entered into a definitive agreement with Procter & Gamble Company (“P&G”) whereby it will acquire the Duracell battery business from P&G. Pursuant to the agreement, in exchange for a recapitalized Duracell Company, which will include approximately $1.7 billion in cash at closing, P&G will receive shares of its common stock currently held by Berkshire subsidiaries having a fair value at December 31, 2014 of approximately $4.8 billion. The transaction is expected to close in the second half of 2015 and is subject to obtaining various regulatory approvals as well as certain other customary closing conditions. | |||||||||||||||||||||||||
We own a 50% interest in a joint venture, Berkadia Commercial Mortgage LLC (“Berkadia”), with Leucadia National Corporation (“Leucadia”) owning the other 50% interest. Berkadia is a servicer of commercial real estate loans in the U.S., performing primary, master and special servicing functions for U.S. government agency programs, commercial mortgage-backed securities transactions, banks, insurance companies and other financial institutions. A significant source of funding for Berkadia’s operations is through the issuance of commercial paper. Repayment of the commercial paper is supported by a $2.5 billion surety policy issued by a Berkshire insurance subsidiary. Leucadia has agreed to indemnify us for one-half of any losses incurred under the policy. As of December 31, 2014, the aggregate amount of Berkadia commercial paper outstanding was $2.47 billion. | |||||||||||||||||||||||||
Business_segment_data
Business segment data | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Business segment data | -23 | Business segment data | |||||||||||||||||||||||
Our operating businesses include a large and diverse group of insurance, finance, manufacturing, service and retailing businesses. Our reportable business segments are organized in a manner that reflects how management views those business activities. Certain businesses have been grouped together for segment reporting based upon similar products or product lines, marketing, selling and distribution characteristics, even though those business units are operated under separate local management. | |||||||||||||||||||||||||
The tabular information that follows shows data of reportable segments reconciled to amounts reflected in our Consolidated Financial Statements. Intersegment transactions are not eliminated when management considers those transactions in assessing the results of the respective segments. Furthermore, our management does not consider investment and derivative gains/losses or amortization of purchase accounting adjustments related to Berkshire’s acquisition in assessing the performance of reporting units. Collectively, these items are included in reconciliations of segment amounts to consolidated amounts. | |||||||||||||||||||||||||
Business Identity | Business Activity | ||||||||||||||||||||||||
GEICO | Underwriting private passenger automobile insurance mainly by direct response methods | ||||||||||||||||||||||||
General Re | Underwriting excess-of-loss, quota-share and facultative reinsurance worldwide | ||||||||||||||||||||||||
Berkshire Hathaway Reinsurance Group | Underwriting excess-of-loss and quota-share reinsurance for insurers and reinsurers | ||||||||||||||||||||||||
Berkshire Hathaway Primary Group | Underwriting multiple lines of property and casualty insurance policies for primarily commercial accounts | ||||||||||||||||||||||||
BNSF | Operates one of the largest railroad systems in North America | ||||||||||||||||||||||||
Berkshire Hathaway Energy | Regulated electric and gas utility, including power generation and distribution activities, and domestic real estate brokerage and brokerage franchisor | ||||||||||||||||||||||||
McLane Company | Wholesale distribution of groceries and non-food items | ||||||||||||||||||||||||
Manufacturing | Manufacturers of numerous products including industrial and end-user products, building products and apparel | ||||||||||||||||||||||||
Service and retailing | Providers of numerous services including fractional aircraft ownership programs, aviation pilot training, electronic components distribution and retailing | ||||||||||||||||||||||||
Finance and financial products | Manufactured housing and related consumer financing; transportation equipment, manufacturing and leasing; and furniture leasing | ||||||||||||||||||||||||
A disaggregation of our consolidated data for each of the three most recent years is presented in the tables which follow (in millions). | |||||||||||||||||||||||||
Revenues | Earnings before income taxes | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Operating Businesses: | |||||||||||||||||||||||||
Insurance group: | |||||||||||||||||||||||||
Underwriting: | |||||||||||||||||||||||||
GEICO | $ | 20,496 | $ | 18,572 | $ | 16,740 | $ | 1,159 | $ | 1,127 | $ | 680 | |||||||||||||
General Re | 6,264 | 5,984 | 5,870 | 277 | 283 | 355 | |||||||||||||||||||
Berkshire Hathaway Reinsurance Group | 10,116 | 8,786 | 9,672 | 606 | 1,294 | 304 | |||||||||||||||||||
Berkshire Hathaway Primary Group | 4,377 | 3,342 | 2,263 | 626 | 385 | 286 | |||||||||||||||||||
Investment income | 4,370 | 4,735 | 4,474 | 4,357 | 4,713 | 4,454 | |||||||||||||||||||
Total insurance group | 45,623 | 41,419 | 39,019 | 7,025 | 7,802 | 6,079 | |||||||||||||||||||
BNSF | 23,239 | 22,014 | 20,835 | 6,169 | 5,928 | 5,377 | |||||||||||||||||||
Berkshire Hathaway Energy | 17,614 | 12,743 | 11,747 | 2,711 | 1,806 | 1,644 | |||||||||||||||||||
McLane Company | 46,640 | 45,930 | 37,437 | 435 | 486 | 403 | |||||||||||||||||||
Manufacturing | 36,773 | 34,258 | 32,105 | 4,811 | 4,205 | 3,911 | |||||||||||||||||||
Service and retailing | 14,276 | 13,284 | 11,890 | 1,546 | 1,469 | 1,272 | |||||||||||||||||||
Finance and financial products | 6,526 | 6,110 | 5,933 | 1,839 | 1,564 | 1,393 | |||||||||||||||||||
190,691 | 175,758 | 158,966 | 24,536 | 23,260 | 20,079 | ||||||||||||||||||||
Reconciliation of segments to consolidated amount: | |||||||||||||||||||||||||
Investment and derivative gains/losses | 4,081 | 6,673 | 3,425 | 4,081 | 6,673 | 3,425 | |||||||||||||||||||
Interest expense, not allocated to segments | — | — | — | (313 | ) | (303 | ) | (271 | ) | ||||||||||||||||
Eliminations and other | (99 | ) | (281 | ) | 72 | (199 | ) | (834 | ) | (997 | ) | ||||||||||||||
$ | 194,673 | $ | 182,150 | $ | 162,463 | $ | 28,105 | $ | 28,796 | $ | 22,236 | ||||||||||||||
Capital expenditures | Depreciation | ||||||||||||||||||||||||
of tangible assets | |||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Operating Businesses: | |||||||||||||||||||||||||
Insurance group | $ | 94 | $ | 89 | $ | 61 | $ | 69 | $ | 58 | $ | 57 | |||||||||||||
BNSF | 5,243 | 3,918 | 3,548 | 1,804 | 1,655 | 1,573 | |||||||||||||||||||
Berkshire Hathaway Energy | 6,555 | 4,307 | 3,380 | 2,177 | 1,577 | 1,440 | |||||||||||||||||||
McLane Company | 241 | 225 | 225 | 159 | 159 | 149 | |||||||||||||||||||
Manufacturing | 1,324 | 1,037 | 1,062 | 943 | 1,061 | 1,068 | |||||||||||||||||||
Service and retailing | 591 | 488 | 381 | 461 | 413 | 379 | |||||||||||||||||||
Finance and financial products | 1,137 | 1,023 | 1,118 | 602 | 495 | 480 | |||||||||||||||||||
$ | 15,185 | $ | 11,087 | $ | 9,775 | $ | 6,215 | $ | 5,418 | $ | 5,146 | ||||||||||||||
Goodwill | Identifiable assets | ||||||||||||||||||||||||
at year-end | at year-end | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2012 | |||||||||||||||||||||
Operating Businesses: | |||||||||||||||||||||||||
Insurance group: | |||||||||||||||||||||||||
GEICO | $ | 1,370 | $ | 1,372 | $ | 45,439 | $ | 39,568 | $ | 30,986 | |||||||||||||||
General Re | 13,527 | 13,532 | 28,692 | 29,956 | 30,477 | ||||||||||||||||||||
Berkshire Hathaway Reinsurance and Primary Groups | 650 | 607 | 151,301 | 138,480 | 118,819 | ||||||||||||||||||||
Total insurance group | 15,547 | 15,511 | 225,432 | 208,004 | 180,282 | ||||||||||||||||||||
BNSF | 14,819 | 14,819 | 62,916 | 59,842 | 56,839 | ||||||||||||||||||||
Berkshire Hathaway Energy | 9,599 | 7,784 | 71,482 | 62,189 | 46,856 | ||||||||||||||||||||
McLane Company | 657 | 701 | 5,419 | 5,209 | 5,090 | ||||||||||||||||||||
Manufacturing | 14,818 | 13,341 | 34,509 | 34,100 | 32,097 | ||||||||||||||||||||
Service and retailing | 3,937 | 3,514 | 11,303 | 10,051 | 9,566 | ||||||||||||||||||||
Finance and financial products | 1,337 | 1,341 | 32,164 | 31,886 | 30,854 | ||||||||||||||||||||
$ | 60,714 | $ | 57,011 | 443,225 | 411,281 | 361,584 | |||||||||||||||||||
Reconciliation of segments to consolidated amount: | |||||||||||||||||||||||||
Corporate and other | 22,247 | 16,639 | 11,345 | ||||||||||||||||||||||
Goodwill | 60,714 | 57,011 | 54,523 | ||||||||||||||||||||||
$ | 526,186 | $ | 484,931 | $ | 427,452 | ||||||||||||||||||||
Insurance premiums written by geographic region (based upon the domicile of the insured or reinsured) are summarized below. Dollars are in millions. | |||||||||||||||||||||||||
Property/Casualty | Life/Health | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
United States | $ | 31,362 | $ | 25,704 | $ | 23,186 | $ | 3,402 | $ | 3,934 | $ | 3,504 | |||||||||||||
Western Europe | 2,424 | 2,234 | 4,387 | 1,135 | 1,339 | 1,114 | |||||||||||||||||||
All other | 2,805 | 2,973 | 2,319 | 1,305 | 1,026 | 1,217 | |||||||||||||||||||
$ | 36,591 | $ | 30,911 | $ | 29,892 | $ | 5,842 | $ | 6,299 | $ | 5,835 | ||||||||||||||
In 2014 and 2013, premiums written and earned attributable to Western Europe were primarily in the United Kingdom and Germany. In 2012, premiums written and earned also included meaningful amounts attributable to Switzerland and Luxembourg. Life/health insurance premiums written and earned in the United States included approximately $1.5 billion in 2012 from a single contract with Swiss Re Life & Health America Inc., an affiliate of Swiss Reinsurance Company Ltd. This contract was amended in 2013 which resulted in a significant return of premiums. | |||||||||||||||||||||||||
Consolidated sales and service revenues in 2014, 2013 and 2012 were $102.2 billion, $97.6 billion and $85.8 billion, respectively. In each year, approximately 85% of such revenues were attributable to the United States. The remainder of sales and service revenues were primarily in the Europe, Canada and Asia-Pacific regions. In each of the three years ending December 31, 2014, consolidated sales and service revenues included sales of approximately $13 billion in 2014 and 2013 and $12 billion in 2012 to Wal-Mart Stores, Inc. | |||||||||||||||||||||||||
Approximately 96% of our revenues in 2014, 2013 and 2012 from railroad, utilities and energy businesses were in the United States. At December 31, 2014, 88% of our consolidated net property, plant and equipment was located in the United States with the remainder primarily in Europe and Canada. | |||||||||||||||||||||||||
Premiums written and earned by the property/casualty and life/health insurance businesses are summarized below (in millions). | |||||||||||||||||||||||||
Property/Casualty | Life/Health | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Premiums Written: | |||||||||||||||||||||||||
Direct | $ | 27,541 | $ | 24,292 | $ | 20,796 | $ | 879 | $ | 931 | $ | 554 | |||||||||||||
Assumed | 9,889 | 7,339 | 9,668 | 5,030 | 5,437 | 5,391 | |||||||||||||||||||
Ceded | (839 | ) | (720 | ) | (572 | ) | (67 | ) | (69 | ) | (110 | ) | |||||||||||||
$ | 36,591 | $ | 30,911 | $ | 29,892 | $ | 5,842 | $ | 6,299 | $ | 5,835 | ||||||||||||||
Premiums Earned: | |||||||||||||||||||||||||
Direct | $ | 26,389 | $ | 23,267 | $ | 20,204 | $ | 879 | $ | 931 | $ | 554 | |||||||||||||
Assumed | 9,872 | 7,928 | 9,142 | 5,030 | 5,425 | 5,356 | |||||||||||||||||||
Ceded | (850 | ) | (797 | ) | (600 | ) | (67 | ) | (70 | ) | (111 | ) | |||||||||||||
$ | 35,411 | $ | 30,398 | $ | 28,746 | $ | 5,842 | $ | 6,286 | $ | 5,799 | ||||||||||||||
Quarterly_data
Quarterly data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly data | -24 | Quarterly data | |||||||||||||||
A summary of revenues and earnings by quarter for each of the last two years is presented in the following table. This information is unaudited. Dollars are in millions, except per share amounts. | |||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
2014 | |||||||||||||||||
Revenues | $ | 45,453 | $ | 49,762 | $ | 51,199 | $ | 48,259 | |||||||||
Net earnings attributable to Berkshire shareholders * | 4,705 | 6,395 | 4,617 | 4,155 | |||||||||||||
Net earnings attributable to Berkshire shareholders per equivalent Class A common share | 2,862 | 3,889 | 2,811 | 2,529 | |||||||||||||
2013 | |||||||||||||||||
Revenues | $ | 43,867 | $ | 44,693 | $ | 46,541 | $ | 47,049 | |||||||||
Net earnings attributable to Berkshire shareholders * | 4,892 | 4,541 | 5,053 | 4,990 | |||||||||||||
Net earnings attributable to Berkshire shareholders per equivalent Class A common share | 2,977 | 2,763 | 3,074 | 3,035 | |||||||||||||
* | Includes realized investment gains/losses, other-than-temporary impairment losses on investments and derivative gains/losses. Derivative gains/losses include significant amounts related to non-cash changes in the fair value of long-term contracts arising from short-term changes in equity prices, interest rates and foreign currency rates, among other factors. After-tax investment and derivative gains/losses for the periods presented above are as follows (in millions): | ||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Investment and derivative gains/losses – 2014 | $ | 1,172 | $ | 2,064 | $ | (107 | ) | $ | 192 | ||||||||
Investment and derivative gains/losses – 2013 | 1,110 | 622 | 1,391 | 1,214 |
Condensed_Financial_Informatio
Condensed Financial Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information | BERKSHIRE HATHAWAY INC. | ||||||||||||
(Parent Company) | |||||||||||||
Condensed Financial Information | |||||||||||||
(Dollars in millions) | |||||||||||||
Schedule I | |||||||||||||
Balance Sheets | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 9,449 | $ | 3,412 | |||||||||
Investments in fixed maturity and equity securities | 152 | 178 | |||||||||||
Investments in and advances to/from consolidated subsidiaries | 227,615 | 215,465 | |||||||||||
Investments in H.J. Heinz Holding Corporation | 11,660 | 12,111 | |||||||||||
Other assets | 91 | 97 | |||||||||||
$ | 248,967 | $ | 231,263 | ||||||||||
Liabilities and Shareholders’ Equity: | |||||||||||||
Accounts payable, accrued interest and other liabilities | $ | 100 | $ | 209 | |||||||||
Income taxes | 343 | 853 | |||||||||||
Notes payable and other borrowings | 8,354 | 8,311 | |||||||||||
8,797 | 9,373 | ||||||||||||
Berkshire Hathaway shareholders’ equity | 240,170 | 221,890 | |||||||||||
$ | 248,967 | $ | 231,263 | ||||||||||
Statements of Earnings and Comprehensive Income | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income items: | |||||||||||||
From consolidated subsidiaries: | |||||||||||||
Dividends and distributions | $ | 4,969 | $ | 6,158 | $ | 6,799 | |||||||
Undistributed earnings | 14,496 | 13,657 | 8,301 | ||||||||||
19,465 | 19,815 | 15,100 | |||||||||||
Other income | 758 | 229 | 88 | ||||||||||
20,223 | 20,044 | 15,188 | |||||||||||
Cost and expense items: | |||||||||||||
General and administrative | (1 | ) | 94 | 133 | |||||||||
Interest expense | 236 | 228 | 196 | ||||||||||
Income taxes | 116 | 246 | 35 | ||||||||||
351 | 568 | 364 | |||||||||||
Net earnings attributable to Berkshire Hathaway shareholders | 19,872 | 19,476 | 14,824 | ||||||||||
Other comprehensive income attributable to Berkshire Hathaway shareholders | (1,293 | ) | 16,546 | 9,846 | |||||||||
Comprehensive income attributable to Berkshire Hathaway shareholders | $ | 18,579 | $ | 36,022 | $ | 24,670 | |||||||
See Note to Condensed Financial Information | |||||||||||||
Statements of Cash Flows | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net earnings attributable to Berkshire Hathaway shareholders | $ | 19,872 | $ | 19,476 | $ | 14,824 | |||||||
Adjustments to reconcile net earnings to cash flows from operating activities: | |||||||||||||
Undistributed earnings of subsidiaries | (14,496 | ) | (13,657 | ) | (8,301 | ) | |||||||
Income taxes payable | 136 | 396 | 80 | ||||||||||
Other | (75 | ) | 112 | 101 | |||||||||
Net cash flows from operating activities | 5,437 | 6,327 | 6,704 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Investments in H.J. Heinz Holding Corporation | — | (12,250 | ) | — | |||||||||
Investments in and advances to/repayments from subsidiaries | 1,673 | (433 | ) | (1,525 | ) | ||||||||
Net cash flows from investing activities | 1,673 | (12,683 | ) | (1,525 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||
Proceeds from borrowings | 832 | 2,611 | 1,740 | ||||||||||
Repayments of borrowings | (792 | ) | (2,656 | ) | (1,751 | ) | |||||||
Acquisitions of noncontrolling interests | (1,231 | ) | (836 | ) | (800 | ) | |||||||
Acquisitions of treasury stock | — | — | (1,296 | ) | |||||||||
Other | 118 | 92 | 196 | ||||||||||
Net cash flows from financing activities | (1,073 | ) | (789 | ) | (1,911 | ) | |||||||
Increase (decrease) in cash and cash equivalents | 6,037 | (7,145 | ) | 3,268 | |||||||||
Cash and cash equivalents at beginning of year | 3,412 | 10,557 | 7,289 | ||||||||||
Cash and cash equivalents at end of year | $ | 9,449 | $ | 3,412 | $ | 10,557 | |||||||
Other cash flow information: | |||||||||||||
Income taxes paid | $ | 2,512 | $ | 4,080 | $ | 3,406 | |||||||
Interest paid | 233 | 205 | 180 | ||||||||||
Note to Condensed Financial Information | |||||||||||||
On June 7, 2013, Berkshire invested $12.25 billion in a newly formed entity, H.J. Heinz Holding Corporation (“Heinz Holding”), which acquired H.J. Heinz Company. Berkshire’s investments in Heinz Holding consist of 425 million shares of common stock, warrants to acquire approximately 46 million additional shares of common stock, and cumulative compounding preferred stock with a liquidation preference of $8 billion. Berkshire accounts for the investments in Heinz Holding common stock and common stock warrants under the equity method. The investment in Heinz Holding preferred stock is carried at cost. | |||||||||||||
Berkshire’s notes payable and borrowings at December 31, 2014 mature over the next five years as follows: 2015—$1,710 million; 2016—$1,051 million; 2017—$1,144 million; 2018—$808 million and 2019—$755 million. | |||||||||||||
Berkshire Hathaway Inc. has guaranteed debt obligations of certain of its subsidiaries. As of December 31, 2014, the unpaid balance of subsidiary debt guaranteed by Berkshire totaled approximately $14.6 billion. Berkshire’s guarantee of subsidiary debt is an absolute, unconditional and irrevocable guarantee for the full and prompt payment when due of all present and future payment obligations. Berkshire also provides guarantees in connection with long-term equity index put option and credit default contracts entered into by a subsidiary. The estimated fair value of liabilities recorded under such contracts was approximately $4.8 billion as of December 31, 2014. The amount of subsidiary payments under these contracts, if any, is contingent upon future events and will not be fully known for several years. |
Significant_accounting_policie1
Significant accounting policies and practices (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Nature of operations and basis of consolidation | (a) | Nature of operations and basis of consolidation | |
Berkshire Hathaway Inc. (“Berkshire”) is a holding company owning subsidiaries engaged in a number of diverse business activities, including insurance and reinsurance, freight rail transportation, utilities and energy, manufacturing, service, retailing and finance. In these notes the terms “us,” “we,” or “our” refer to Berkshire and its consolidated subsidiaries. Further information regarding our reportable business segments is contained in Note 23. Significant business acquisitions completed over the past three years are discussed in Note 2. | |||
The accompanying Consolidated Financial Statements include the accounts of Berkshire consolidated with the accounts of all subsidiaries and affiliates in which we hold a controlling financial interest as of the financial statement date. Normally a controlling financial interest reflects ownership of a majority of the voting interests. We consolidate a variable interest entity (“VIE”) when we possess both the power to direct the activities of the VIE that most significantly impact its economic performance and we are either obligated to absorb the losses that could potentially be significant to the VIE or we hold the right to receive benefits from the VIE that could potentially be significant to the VIE. | |||
Intercompany accounts and transactions have been eliminated. In 2014, we began including the transportation equipment manufacturing and leasing businesses of Marmon Holdings, Inc. (“Marmon”) as part of our finance and financial products businesses. Prior period amounts in these financial statements have been reclassified to conform to the current year presentation. On April 30, 2014, MidAmerican Energy Holdings Company’s name was changed to Berkshire Hathaway Energy Company (“BHE”). | |||
Use of estimates in preparation of financial statements | (b) | Use of estimates in preparation of financial statements | |
The preparation of our Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. In particular, estimates of unpaid losses and loss adjustment expenses and related recoverables under reinsurance for property and casualty insurance are subject to considerable estimation error due to the inherent uncertainty in projecting ultimate claim amounts. In addition, estimates and assumptions associated with the amortization of deferred charges on retroactive reinsurance contracts, determinations of fair values of certain financial instruments and evaluations of goodwill and identifiable intangible assets for impairment require considerable judgment. Actual results may differ from the estimates used in preparing our Consolidated Financial Statements. | |||
Cash and cash equivalents | (c) | Cash and cash equivalents | |
Cash equivalents consist of funds invested in U.S. Treasury Bills, money market accounts, demand deposits and other investments with a maturity of three months or less when purchased. | |||
Investments | (d) | Investments | |
We determine the appropriate classification of investments in fixed maturity and equity securities at the acquisition date and re-evaluate the classification at each balance sheet date. Held-to-maturity investments are carried at amortized cost, reflecting the ability and intent to hold the securities to maturity. Trading investments are securities acquired with the intent to sell in the near term and are carried at fair value. All other securities are classified as available-for-sale and are carried at fair value with net unrealized gains or losses reported as a component of accumulated other comprehensive income. Substantially all of our investments in equity and fixed maturity securities are classified as available-for-sale. | |||
We utilize the equity method to account for investments when we possess the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when an investor possesses more than 20% of the voting interests of the investee. This presumption may be overcome based on specific facts and circumstances that demonstrate that the ability to exercise significant influence is restricted. We apply the equity method to investments in common stock and to other investments when such other investments possess substantially identical subordinated interests to common stock. | |||
In applying the equity method, we record the investment at cost and subsequently increase or decrease the carrying amount of the investment by our proportionate share of the net earnings or losses and other comprehensive income of the investee. We record dividends or other equity distributions as reductions in the carrying value of the investment. In the event that net losses of the investee reduce the carrying amount to zero, additional net losses may be recorded if other investments in the investee are at-risk, even if we have not committed to provide financial support to the investee. Such additional equity method losses, if any, are based upon the change in our claim on the investee’s book value. | |||
Investment gains and losses arise when investments are sold (as determined on a specific identification basis) or are other-than-temporarily impaired. If a decline in the value of an investment below cost is deemed other than temporary, the cost of the investment is written down to fair value, with a corresponding charge to earnings. Factors considered in determining whether an impairment is other than temporary include: the financial condition, business prospects and creditworthiness of the issuer, the relative amount of the decline, our ability and intent to hold the investment until the fair value recovers and the length of time that fair value has been less than cost. With respect to an investment in a fixed maturity security, we recognize an other-than-temporary impairment if we (a) intend to sell or expect to be required to sell the security before its amortized cost is recovered or (b) do not expect to ultimately recover the amortized cost basis even if we do not intend to sell the security. Under scenario (a), we recognize losses in earnings and under scenario (b), we recognize the credit loss component in earnings and the difference between fair value and the amortized cost basis net of the credit loss in other comprehensive income. | |||
Receivables, loans and finance receivables | (e) | Receivables, loans and finance receivables | |
Receivables of the insurance and other businesses are stated net of estimated allowances for uncollectible balances. Allowances for uncollectible balances are provided when it is probable counterparties or customers will be unable to pay all amounts due based on the contractual terms. Receivables are generally written off against allowances after all reasonable collection efforts are exhausted. | |||
Loans and finance receivables of the finance and financial products businesses are predominantly manufactured housing installment loans. Loans and finance receivables are stated at amortized cost based on our ability and intent to hold such loans and receivables to maturity and are stated net of allowances for uncollectible accounts. The carrying value of acquired loans represents acquisition costs, plus or minus origination and commitment costs paid or fees received, which together with acquisition premiums or discounts, are deferred and amortized as yield adjustments over the life of the loans. Loans and finance receivables include loan securitizations issued when we have the power to direct and the right to receive residual returns. Substantially all of these loans are secured by real or personal property or other assets of the borrower. | |||
Allowances for credit losses from manufactured housing loans include estimates of losses on loans currently in foreclosure and losses on loans not currently in foreclosure. Estimates of losses on loans in foreclosure are based on historical experience and collateral recovery rates. Estimates of losses on loans not currently in foreclosure consider historical default rates, collateral recovery rates and existing economic conditions. Allowances for credit losses also incorporate the historical average time elapsed from the last payment until foreclosure. | |||
Loans in which payments are delinquent (with no grace period) are considered past due. Loans which are over 90 days past due or are in foreclosure are placed on nonaccrual status and interest previously accrued but not collected is reversed. Subsequent amounts received on the loans are first applied to the principal and interest owed for the most delinquent amount. Interest income accruals are resumed once a loan is less than 90 days delinquent. | |||
Loans in the foreclosure process are considered non-performing. Once a loan is in foreclosure, interest income is not recognized unless the foreclosure is cured or the loan is modified. Once a modification is complete, interest income is recognized based on the terms of the new loan. Loans that have gone through foreclosure are charged off when the collateral is sold. Loans not in foreclosure are evaluated for charge off based on individual circumstances concerning the future collectability of the loan and the condition of the collateral securing the loan. | |||
Derivatives | (f) | Derivatives | |
We carry derivative contracts in our Consolidated Balance Sheets at fair value, net of reductions permitted under master netting agreements with counterparties. The changes in fair value of derivative contracts that do not qualify as hedging instruments for financial reporting purposes are recorded in earnings. | |||
Cash collateral received from or paid to counterparties to secure derivative contract assets or liabilities is included in other liabilities or other assets. Securities received from counterparties as collateral are not recorded as assets and securities delivered to counterparties as collateral continue to be reflected as assets in our Consolidated Balance Sheets. | |||
Fair value measurements | (g) | Fair value measurements | |
As defined under GAAP, fair value is the price that would be received to sell an asset or paid to transfer a liability between market participants in the principal market or in the most advantageous market when no principal market exists. Adjustments to transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value. Alternative valuation techniques may be appropriate under the circumstances to determine the value that would be received to sell an asset or paid to transfer a liability in an orderly transaction. Market participants are assumed to be independent, knowledgeable, able and willing to transact an exchange and not acting under duress. Our nonperformance or credit risk is considered in determining the fair value of liabilities. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized in a current or future market exchange. | |||
Inventories | (h) | Inventories | |
Inventories consist of manufactured goods and goods acquired for resale. Manufactured inventory costs include raw materials, direct and indirect labor and factory overhead. Inventories are stated at the lower of cost or market. As of December 31, 2014, approximately 43% of our consolidated inventory cost was determined using the last-in-first-out (“LIFO”) method, 33% using the first-in-first-out (“FIFO”) method, and the remainder primarily using the average cost method. With respect to inventories carried at LIFO cost, the aggregate difference in value between LIFO cost and cost determined under the FIFO method was $857 million and $796 million as of December 31, 2014 and 2013, respectively. | |||
Property, plant and equipment and leased assets | (i) | Property, plant and equipment and leased assets | |
Additions to property, plant and equipment used in operations and leased assets are recorded at cost and consist of major additions, improvements and betterments. With respect to constructed assets, all construction related material, direct labor and contract services as well as certain indirect costs are capitalized. Indirect costs include interest over the construction period. With respect to constructed assets of certain of our regulated utility and energy subsidiaries that are subject to authoritative guidance for regulated operations, capitalized costs also include an equity allowance for funds used during construction, which represents the cost of equity funds used to finance the construction of the regulated facilities. Also see Note 1(q). | |||
Normal repairs and maintenance and other costs that do not improve the property, extend the useful life or otherwise do not meet capitalization criteria are charged to expense as incurred. Rail grinding costs related to our railroad properties are expensed as incurred. | |||
Property, plant and equipment and leased assets are depreciated to estimated salvage value primarily on the straight-line method over estimated useful lives or mandated recovery periods as prescribed by regulatory authorities. Depreciation of assets of our regulated utilities and railroad is generally provided using group depreciation methods where rates are based on periodic depreciation studies approved by the applicable regulator. Under group depreciation, a single depreciation rate is applied to the gross investment in a particular class of property, despite differences in the service life or salvage value of individual property units within the same class. When our regulated utilities or railroad retires or sells a component of the assets accounted for using group depreciation methods, no gain or loss is recognized. Gains or losses on disposals of all other assets are recorded through earnings. | |||
Our businesses evaluate property, plant and equipment for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable or the assets are being held for sale. Upon the occurrence of a triggering event, we assess whether the estimated undiscounted cash flows expected from the use of the asset and the residual value from the ultimate disposal of the asset exceeds the carrying value. If the carrying value exceeds the estimated recoverable amounts, we write down the asset to the estimated fair value. Impairment losses are included in earnings, except with respect to impairment of assets of our regulated utility and energy subsidiaries when the impacts of regulation are considered in evaluating the carrying value of regulated assets. | |||
Goodwill and other intangible assets | (j) | Goodwill and other intangible assets | |
Goodwill represents the excess of the acquisition price of a business over the fair value of identifiable net assets of that business. We evaluate goodwill for impairment at least annually. When evaluating goodwill for impairment, we estimate the fair value of the reporting unit. There are several methods that may be used to estimate a reporting unit’s fair value, including market quotations, asset and liability fair values and other valuation techniques, including, but not limited to, discounted projected future net earnings or net cash flows and multiples of earnings. If the carrying amount of a reporting unit, including goodwill, exceeds the estimated fair value, then the identifiable assets and liabilities of the reporting unit are estimated at fair value as of the current testing date. The excess of the estimated fair value of the reporting unit over the current estimated fair value of net assets establishes the implied value of goodwill. The excess of the recorded goodwill over the implied goodwill value is charged to earnings as an impairment loss. Significant judgment is required in estimating the fair value of the reporting unit and performing goodwill impairment tests. | |||
Intangible assets with definite lives are amortized based on the estimated pattern in which the economic benefits are expected to be consumed or on a straight-line basis over their estimated economic lives. Intangible assets with definite lives are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Intangible assets with indefinite lives are tested for impairment at least annually and when events or changes in circumstances indicate that it is more likely than not that the asset is impaired. | |||
Revenue recognition | (k) | Revenue recognition | |
Insurance premiums for prospective property/casualty and health insurance and reinsurance are earned over the loss exposure or coverage period in proportion to the level of protection provided. In most cases, premiums are recognized as revenues ratably over the term of the contract with unearned premiums computed on a monthly or daily pro-rata basis. Premiums for retroactive property/casualty reinsurance policies are earned at the inception of the contracts, as all of the underlying loss events covered by these policies occurred in the past. Premiums for life reinsurance and annuity contracts are earned when due. Premiums earned are stated net of amounts ceded to reinsurers. For contracts containing experience rating provisions, premiums earned reflect estimated loss experience under the contracts. | |||
Sales revenues derive from the sales of manufactured products and goods acquired for resale. Revenues from sales are recognized upon passage of title to the customer, which generally coincides with customer pickup, product delivery or acceptance, depending on terms of the sales arrangement. | |||
Service revenues are recognized as the services are performed. Services provided pursuant to a contract are either recognized over the contract period or upon completion of the elements specified in the contract depending on the terms of the contract. Revenues related to the sales of fractional ownership interests in aircraft are recognized ratably over the term of the related management services agreement as the transfer of ownership interest in the aircraft is inseparable from the management services agreement. | |||
Leasing revenue is generally recognized ratably over the term of the lease, as a substantial portion of our leases are classified as operating leases. | |||
Operating revenues from the distribution and sale of electricity and natural gas to customers are recognized when the services are rendered or the energy is delivered. Revenues include unbilled as well as billed amounts. Rates charged are generally subject to federal and state regulation or established under contractual arrangements. When preliminary rates are permitted to be billed prior to final approval by the applicable regulator, certain revenue collected may be subject to refund and a liability for estimated refunds is recorded. | |||
Railroad transportation revenues are recognized based upon the proportion of service provided as of the balance sheet date. Customer incentives, which are primarily provided for shipping a specified cumulative volume or shipping to/from specific locations, are recorded as pro-rata reductions to revenue based on actual or projected future customer shipments. When using projected shipments, we rely on historic trends as well as economic and other indicators to estimate the recorded liability for customer incentives. | |||
Interest income from investments in fixed maturity securities and loans is earned under the interest method, which reflects accrual of interest due under terms of the agreements as well as amortization of acquisition premiums, accruable discounts and capitalized loan origination fees, as applicable. Dividends from equity securities are recognized when earned, which is usually on the ex-dividend date. | |||
Losses and loss adjustment expenses | (l) | Losses and loss adjustment expenses | |
Liabilities for losses and loss adjustment expenses are established under property/casualty insurance and reinsurance contracts issued by our insurance subsidiaries for losses that have occurred as of the balance sheet date. The liabilities for losses and loss adjustment expenses are recorded at the estimated ultimate payment amounts, except that amounts arising from certain workers’ compensation reinsurance business are discounted. Estimated ultimate payment amounts are based upon (1) reports of losses from policyholders, (2) individual case estimates and (3) estimates of incurred but not reported losses. | |||
Provisions for losses and loss adjustment expenses are charged to earnings after deducting amounts recovered and estimates of recoverable amounts under ceded reinsurance contracts. Reinsurance contracts do not relieve the ceding company of its obligations to indemnify policyholders with respect to the underlying insurance and reinsurance contracts. | |||
The estimated liabilities of workers’ compensation claims assumed under certain reinsurance contracts are discounted based upon an annual discount rate of 4.5% for claims arising prior to January 1, 2003 and 1% for claims arising thereafter, consistent with discount rates used under insurance statutory accounting principles. The change in such reserve discounts, including the periodic discount accretion is included in earnings as a component of losses and loss adjustment expenses. | |||
Deferred charges reinsurance assumed | (m) | Deferred charges reinsurance assumed | |
The excess, if any, of the estimated ultimate liabilities for claims and claim settlement costs over the premiums earned with respect to retroactive property/casualty reinsurance contracts is recorded as a deferred charge at inception of the contract. Deferred charges are subsequently amortized using the interest method over the expected claim settlement periods. Changes to the estimated timing or amount of loss payments produce changes in periodic amortization. Changes in such estimates are applied retrospectively and are included in insurance losses and loss adjustment expenses in the period of the change. The unamortized deferred charge balances are included in other assets and were $7,772 million and $4,359 million at December 31, 2014 and 2013, respectively. | |||
Insurance policy acquisition costs | (n) | Insurance policy acquisition costs | |
Incremental costs that are directly related to the successful acquisition of insurance contracts are capitalized, subject to ultimate recoverability, and are subsequently amortized to underwriting expenses as the related premiums are earned. Direct incremental acquisition costs include commissions, premium taxes, and certain other costs associated with successful efforts. All other underwriting costs are expensed as incurred. The recoverability of capitalized insurance policy acquisition costs generally reflects anticipation of investment income. The unamortized balances are included in other assets and were $1,722 million and $1,601 million at December 31, 2014 and 2013, respectively. | |||
Life, annuity and health insurance benefits | (p) | Life, annuity and health insurance benefits | |
Liabilities for insurance benefits under life contracts are computed based upon estimated future investment yields, expected mortality, morbidity, and lapse or withdrawal rates and reflects estimates for future premiums and expenses under the contracts. These assumptions, as applicable, also include a margin for adverse deviation and may vary with the characteristics of the contract’s date of issuance, policy duration and country of risk. The interest rate assumptions used may vary by contract or jurisdiction and generally range from less than 1% to 7%. Annuity contracts are discounted based on the implicit rate of return as of the inception of the contracts and such interest rates generally range from less than 1% to 7%. | |||
Regulated utilities and energy businesses | (q) | Regulated utilities and energy businesses | |
Certain energy subsidiaries prepare their financial statements in accordance with authoritative guidance for regulated operations, reflecting the economic effects of regulation from the ability to recover certain costs from customers and the requirement to return revenues to customers in the future through the regulated rate-setting process. Accordingly, certain costs are deferred as regulatory assets and obligations are accrued as regulatory liabilities. These assets and liabilities will be amortized into operating expenses and revenues over various future periods. | |||
Regulatory assets and liabilities are continually assessed for probable future inclusion in regulatory rates by considering factors such as applicable regulatory or legislative changes and recent rate orders received by other regulated entities. If future inclusion in regulatory rates ceases to be probable, the amount no longer probable of inclusion in regulatory rates is charged or credited to earnings (or other comprehensive income, if applicable) or returned to customers. At December 31, 2014, regulatory assets were $4,253 million and regulatory liabilities were $2,832 million. At December 31, 2013, regulatory assets were $3,515 million and regulatory liabilities were $2,665 million. Regulatory assets and liabilities are components of other assets and other liabilities of utilities and energy businesses. | |||
Foreign currency | (r) | Foreign currency | |
The accounts of our non-U.S. based subsidiaries are measured, in most instances, using the local currencies of the subsidiaries as the functional currencies. Revenues and expenses of these businesses are generally translated into U.S. Dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating the financial statements of foreign-based operations are included in shareholders’ equity as a component of accumulated other comprehensive income. Gains and losses arising from transactions denominated in a currency other than the functional currency of the reporting entity are included in earnings. | |||
Income taxes | (s) | Income taxes | |
Berkshire files a consolidated federal income tax return in the United States, which includes our eligible subsidiaries. In addition, we file income tax returns in state, local and foreign jurisdictions as applicable. Provisions for current income tax liabilities are calculated and accrued on income and expense amounts expected to be included in the income tax returns for the current year. Income taxes reported in earnings also include deferred income tax provisions. | |||
Deferred income taxes are calculated under the liability method. Deferred income tax assets and liabilities are computed on differences between the financial statement bases and tax bases of assets and liabilities at the enacted tax rates. Changes in deferred income tax assets and liabilities that are associated with components of other comprehensive income are charged or credited directly to other comprehensive income. Otherwise, changes in deferred income tax assets and liabilities are included as a component of income tax expense. The effect on deferred income tax assets and liabilities attributable to changes in enacted tax rates are charged or credited to income tax expense in the period of enactment. Valuation allowances are established for certain deferred tax assets where realization is not likely. | |||
Assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions, in our judgment, do not meet a “more-likely-than-not” threshold based on the technical merits of the positions. Estimated interest and penalties related to uncertain tax positions are generally included as a component of income tax expense. | |||
New accounting pronouncements adopted in 2014 | (t) | New accounting pronouncements adopted in 2014 | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date.” ASU 2013-04 requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date as the amount the reporting entity agreed to pay plus additional amounts the reporting entity expects to pay on behalf of its co-obligors. We adopted ASU 2013-04 on January 1, 2014. | |||
In January 2014, the FASB issued ASU 2014-01 “Accounting for Investments in Qualified Affordable Housing Projects.” ASU 2014-01 permits an entity to elect the proportional amortization method of accounting for limited liability investments in qualified affordable housing projects if certain criteria are met. Under the proportional amortization method, the investment is amortized in proportion to the tax benefits received and the amortization charge is reported as a component of income tax expense. We adopted ASU 2014-01 for eligible investments as of January 1, 2014. The adoption of ASU 2013-04 and ASU 2014-01 had an immaterial effect on our Consolidated Financial Statements. | |||
New accounting pronouncements to be adopted subsequent to December 31, 2014 | (u) | New accounting pronouncements to be adopted subsequent to December 31, 2014 | |
In April 2014, the FASB issued ASU 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 provides a narrower definition of discontinued operations than under previous U.S. GAAP. ASU 2014-08 requires that a disposal of components of an entity (or groups of components) be reported as discontinued operations if the disposal represents a strategic shift that will have a major effect on the reporting entity’s operations and financial results. ASU 2014-08 is effective prospectively for disposals (or classifications of businesses as held-for-sale) of components of an entity that occur in annual or interim periods beginning after December 15, 2014. We do not expect that the adoption of ASU 2014-08 will have a material effect on our Consolidated Financial Statements. | |||
In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers.” ASU 2014-09 applies to most contracts with customers. However, insurance and leasing contracts are excluded from the scope of this pronouncement. ASU 2014-09 prescribes a five step framework in accounting for revenues from contracts, including (a) identification of the contract, (b) identification of the performance obligations under the contract, (c) determination of the transaction price, (d) allocation of the transaction price to the identified performance obligations and (e) recognition of revenues as the identified performance obligations are satisfied. ASU 2014-09 also prescribes additional disclosures and financial statement presentations. ASU 2014-09 is effective for public entities in annual reporting periods beginning after December 15, 2016. Early application is not permitted. ASU 2014-09 may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. We are currently evaluating the effect the adoption of this standard will have on our Consolidated Financial Statements. |
Significant_business_acquisiti1
Significant business acquisitions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Schedule of estimated fair values of assets acquired and liabilities assumed | NV Energy’s and AltaLink’s assets acquired, liabilities assumed and residual goodwill at their respective acquisition dates are summarized as follows (in millions). | ||||||||
AltaLink | NV Energy | ||||||||
as of | as of | ||||||||
December 1, | December 19, | ||||||||
2014 | 2013 | ||||||||
Property, plant and equipment | $ | 5,610 | $ | 9,511 | |||||
Goodwill | 1,700 | 2,369 | |||||||
Other assets, including cash and cash equivalents | 294 | 2,506 | |||||||
Assets acquired | $ | 7,604 | $ | 14,386 | |||||
Accounts payable, accruals and other liabilities | $ | 1,025 | $ | 3,456 | |||||
Notes payable and other borrowings | 3,851 | 5,334 | |||||||
Liabilities assumed | $ | 4,876 | $ | 8,790 | |||||
Net assets acquired | $ | 2,728 | $ | 5,596 | |||||
Schedule of pro forma consolidated earnings data | The following table sets forth certain unaudited pro forma consolidated earnings data for 2014 and 2013, as if the acquisitions discussed previously were consummated on the same terms at the beginning of the year preceding their respective acquisition dates (in millions, except per share amounts). | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Revenues | $ | 195,298 | $ | 186,664 | |||||
Net earnings attributable to Berkshire Hathaway shareholders | 19,975 | 19,845 | |||||||
Net earnings per equivalent Class A common share attributable to Berkshire Hathaway shareholders | 12,154 | 12,074 |
Investments_in_fixed_maturity_1
Investments in fixed maturity securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Schedule of investments in securities with fixed maturities | Investments in securities with fixed maturities as of December 31, 2014 and 2013 are summarized by type below (in millions). | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies | $ | 2,921 | $ | 14 | $ | (5 | ) | $ | 2,930 | ||||||||||||||||
States, municipalities and political subdivisions | 1,820 | 93 | (1 | ) | 1,912 | ||||||||||||||||||||
Foreign governments | 12,023 | 373 | (126 | ) | 12,270 | ||||||||||||||||||||
Corporate bonds | 7,704 | 1,072 | (5 | ) | 8,771 | ||||||||||||||||||||
Mortgage-backed securities | 1,555 | 202 | (4 | ) | 1,753 | ||||||||||||||||||||
$ | 26,023 | $ | 1,754 | $ | (141 | ) | $ | 27,636 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies | $ | 2,650 | $ | 16 | $ | (8 | ) | $ | 2,658 | ||||||||||||||||
States, municipalities and political subdivisions | 2,221 | 129 | (5 | ) | 2,345 | ||||||||||||||||||||
Foreign governments | 11,001 | 182 | (110 | ) | 11,073 | ||||||||||||||||||||
Corporate bonds | 10,062 | 1,190 | (15 | ) | 11,237 | ||||||||||||||||||||
Mortgage-backed securities | 1,830 | 218 | (8 | ) | 2,040 | ||||||||||||||||||||
$ | 27,764 | $ | 1,735 | $ | (146 | ) | $ | 29,353 | |||||||||||||||||
Investments in fixed maturity securities are reflected in our Consolidated Balance Sheets as follows (in millions). | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Insurance and other | $ | 27,397 | $ | 28,785 | |||||||||||||||||||||
Finance and financial products | 239 | 568 | |||||||||||||||||||||||
$ | 27,636 | $ | 29,353 | ||||||||||||||||||||||
Schedule of amortized cost and estimated fair value of securities with fixed maturities | The amortized cost and estimated fair value of securities with fixed maturities at December 31, 2014 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 in one | Due after one | Due after five | Due after | Mortgage- | Total | ||||||||||||||||||||
year or less | year through | years through | ten years | backed | |||||||||||||||||||||
five years | ten years | securities | |||||||||||||||||||||||
Amortized cost | $ | 7,650 | $ | 11,341 | $ | 2,782 | $ | 2,695 | $ | 1,555 | $ | 26,023 | |||||||||||||
Fair value | 7,585 | 11,994 | 3,009 | 3,295 | 1,753 | 27,636 |
Investments_in_equity_securiti1
Investments in equity securities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule of investments in equity securities | Investments in equity securities as of December 31, 2014 and 2013 are summarized based on the primary industry of the investee in the table below (in millions). | ||||||||||||||||
Cost Basis | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
December 31, 2014 * | |||||||||||||||||
Banks, insurance and finance | $ | 22,495 | $ | 33,170 | $ | — | $ | 55,665 | |||||||||
Consumer products | 6,951 | 18,389 | (1 | ) | 25,339 | ||||||||||||
Commercial, industrial and other | 28,924 | 8,578 | (1,036 | ) | 36,466 | ||||||||||||
$ | 58,370 | $ | 60,137 | $ | (1,037 | ) | $ | 117,470 | |||||||||
* | Approximately 59% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company—$14.1 billion; Wells Fargo & Company—$26.5 billion; International Business Machines Corporation—$12.3 billion; and The Coca-Cola Company—$16.9 billion). | ||||||||||||||||
Cost Basis | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
December 31, 2013 * | |||||||||||||||||
Banks, insurance and finance | $ | 22,420 | $ | 28,021 | $ | — | $ | 50,441 | |||||||||
Consumer products | 7,082 | 17,854 | — | 24,936 | |||||||||||||
Commercial, industrial and other | 29,949 | 12,322 | (143 | ) | 42,128 | ||||||||||||
$ | 59,451 | $ | 58,197 | $ | (143 | ) | $ | 117,505 | |||||||||
* | Approximately 55% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company—$13.8 billion; Wells Fargo & Company—$21.9 billion; International Business Machines Corporation—$12.8 billion; and The Coca-Cola Company—$16.5 billion). | ||||||||||||||||
As of December 31, 2014 and 2013, we concluded that there were no unrealized losses that were other than temporary. Our conclusions were based on: (a) our ability and intent to hold the securities to recovery; (b) our assessment that the underlying business and financial condition of each of these issuers was favorable; (c) our opinion that the relative price declines were not significant; and (d) our belief that market prices will increase to and exceed our cost. As of December 31, 2014 and 2013, unrealized losses on equity securities in a continuous unrealized loss position for more than twelve consecutive months were $65 million and $52 million, respectively. | |||||||||||||||||
Investments in equity securities are reflected in our Consolidated Balance Sheets as follows (in millions). | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Insurance and other | $ | 115,529 | $ | 115,464 | |||||||||||||
Railroad, utilities and energy * | 881 | 1,103 | |||||||||||||||
Finance and financial products | 1,060 | 938 | |||||||||||||||
$ | 117,470 | $ | 117,505 | ||||||||||||||
* | Included in other assets. |
Other_investments_Tables
Other investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule of other investments | Other investments are classified as available-for-sale and carried at fair value and are shown in our Consolidated Balance Sheets as follows (in millions). | ||||||||||||||||
Cost | Fair Value | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Insurance and other | $ | 9,970 | $ | 6,970 | $ | 16,346 | $ | 12,334 | |||||||||
Finance and financial products | 3,052 | 3,052 | 5,978 | 5,617 | |||||||||||||
$ | 13,022 | $ | 10,022 | $ | 22,324 | $ | 17,951 | ||||||||||
Investments_in_HJ_Heinz_Holdin1
Investments in H.J. Heinz Holding Corporation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summarized consolidated financial information of Heinz Holding and its subsidiaries | Summarized consolidated financial information of Heinz Holding and its subsidiaries follows (in millions). | ||||||||
December 28, 2014 | December 29, 2013 | ||||||||
Assets | $ | 36,763 | $ | 38,972 | |||||
Liabilities | 21,077 | 22,429 | |||||||
Fiscal Year ending | June 7, 2013 through | ||||||||
December 28, 2014 | December 29, 2013 | ||||||||
Sales | $ | 10,922 | $ | 6,240 | |||||
Net earnings (loss) | $ | 657 | $ | (77 | ) | ||||
Preferred stock dividends earned by Berkshire | (720 | ) | (408 | ) | |||||
Net earnings (loss) attributable to common stockholders | $ | (63 | ) | $ | (485 | ) | |||
Earnings attributable to Berkshire Hathaway Shareholders * | $ | 687 | $ | 153 | |||||
* | Includes dividends earned and Berkshire’s share of net earnings (loss) attributable to common stockholders. |
Investment_gainslosses_Tables
Investment gains/losses (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Investment gains/losses, including other-than-temporary impairment losses | Investment gains/losses, including other-than-temporary impairment (“OTTI”) losses, for each of the three years ending December 31, 2014 are summarized below (in millions). | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Fixed maturity securities— | |||||||||||||
Gross gains from sales and other disposals | $ | 360 | $ | 1,783 | $ | 188 | |||||||
Gross losses from sales and other disposals | (89 | ) | (139 | ) | (354 | ) | |||||||
Equity securities— | |||||||||||||
Gross gains from sales and redemptions | 4,016 | 1,253 | 1,468 | ||||||||||
Gross losses from sales and redemptions | (125 | ) | (62 | ) | (12 | ) | |||||||
OTTI losses | (697 | ) | (228 | ) | (337 | ) | |||||||
Other | 110 | 1,458 | 509 | ||||||||||
$ | 3,575 | $ | 4,065 | $ | 1,462 | ||||||||
Receivables_Tables
Receivables (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Insurance and Other [Member] | |||||||||
Schedule of receivables | Receivables of insurance and other businesses are comprised of the following (in millions). | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Insurance premiums receivable | $ | 7,914 | $ | 7,474 | |||||
Reinsurance recoverable on unpaid losses | 3,116 | 3,055 | |||||||
Trade and other receivables | 11,133 | 10,111 | |||||||
Allowances for uncollectible accounts | (311 | ) | (360 | ) | |||||
$ | 21,852 | $ | 20,280 | ||||||
Finance and Financial Products [Member] | |||||||||
Schedule of receivables | Loans and finance receivables of finance and financial products businesses are summarized as follows (in millions). | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Loans and finance receivables before allowances and discounts | $ | 13,150 | $ | 13,576 | |||||
Allowances for uncollectible loans | (303 | ) | (344 | ) | |||||
Unamortized acquisition discounts | (281 | ) | (406 | ) | |||||
$ | 12,566 | $ | 12,826 | ||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Schedule of inventories | Inventories are comprised of the following (in millions). | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,881 | $ | 1,755 | |||||
Work in process and other | 850 | 842 | |||||||
Finished manufactured goods | 3,333 | 3,206 | |||||||
Goods acquired for resale | 4,172 | 4,057 | |||||||
$ | 10,236 | $ | 9,860 | ||||||
Property_plant_and_equipment_T
Property, plant and equipment (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Insurance and Other [Member] | |||||||||||
Schedule of property, plant and equipment | A summary of property, plant and equipment of our insurance and other businesses follows (in millions). | ||||||||||
Ranges of | December 31, | ||||||||||
estimated useful life | 2014 | 2013 | |||||||||
Land | — | $ | 1,171 | $ | 1,098 | ||||||
Buildings and improvements | 2 – 40 years | 6,600 | 6,244 | ||||||||
Machinery and equipment | 3 – 25 years | 16,413 | 15,984 | ||||||||
Furniture, fixtures and other | 2 – 18 years | 3,136 | 2,748 | ||||||||
27,320 | 26,074 | ||||||||||
Accumulated depreciation | (13,167 | ) | (12,451 | ) | |||||||
$ | 14,153 | $ | 13,623 | ||||||||
Railroad, Utilities and Energy [Member] | |||||||||||
Schedule of property, plant and equipment | A summary of property, plant and equipment of our railroad and our utilities and energy businesses follows (in millions). | ||||||||||
Ranges of | December 31, | ||||||||||
estimated useful life | 2014 | 2013 | |||||||||
Railroad: | |||||||||||
Land | — | $ | 5,983 | $ | 5,973 | ||||||
Track structure and other roadway | 5 – 100 years | 42,588 | 40,098 | ||||||||
Locomotives, freight cars and other equipment | 5 – 40 years | 9,493 | 7,551 | ||||||||
Construction in progress | — | 1,292 | 973 | ||||||||
Utilities and energy: | |||||||||||
Utility generation, distribution and transmission system | 5 – 80 years | 64,645 | 57,490 | ||||||||
Interstate pipeline assets | 3 – 80 years | 6,660 | 6,448 | ||||||||
Independent power plants and other assets | 3 – 30 years | 5,035 | 2,516 | ||||||||
Construction in progress | — | 5,194 | 4,217 | ||||||||
140,890 | 125,266 | ||||||||||
Accumulated depreciation | (25,836 | ) | (22,784 | ) | |||||||
$ | 115,054 | $ | 102,482 | ||||||||
Finance and Financial Products [Member] | |||||||||||
Schedule of property, plant and equipment | Assets held for lease and property, plant and equipment of our finance and financial products businesses are summarized below (in millions). | ||||||||||
Ranges of | December 31, | ||||||||||
estimated useful life | 2014 | 2013 | |||||||||
Assets held for lease | 5 – 30 years | $ | 9,810 | $ | 9,509 | ||||||
Land | — | 227 | 233 | ||||||||
Buildings, machinery and other | 3 – 50 years | 1,179 | 1,146 | ||||||||
11,216 | 10,888 | ||||||||||
Accumulated depreciation | (3,179 | ) | (3,188 | ) | |||||||
$ | 8,037 | $ | 7,700 | ||||||||
Goodwill_and_other_intangible_1
Goodwill and other intangible assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Reconciliation of the change in goodwill | A reconciliation of the change in the carrying value of goodwill is as follows (in millions). | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance at beginning of year | $ | 57,011 | $ | 54,523 | |||||||||||||
Acquisitions of businesses | 4,006 | 2,732 | |||||||||||||||
Other, including foreign currency translation | (303 | ) | (244 | ) | |||||||||||||
Balance at end of year | $ | 60,714 | $ | 57,011 | |||||||||||||
Schedule of intangible assets | Intangible assets other than goodwill are included in other assets and are summarized as follows (in millions). | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Gross carrying | Accumulated | Gross carrying | Accumulated | ||||||||||||||
amount | amortization | amount | amortization | ||||||||||||||
Insurance and other | $ | 13,714 | $ | 4,476 | $ | 11,923 | $ | 3,723 | |||||||||
Railroad, utilities and energy | 2,254 | 1,551 | 2,214 | 1,231 | |||||||||||||
$ | 15,968 | $ | 6,027 | $ | 14,137 | $ | 4,954 | ||||||||||
Trademarks and trade names | $ | 3,117 | $ | 599 | $ | 2,750 | $ | 340 | |||||||||
Patents and technology | 5,425 | 3,133 | 5,173 | 2,626 | |||||||||||||
Customer relationships | 5,603 | 1,768 | 4,690 | 1,518 | |||||||||||||
Other | 1,823 | 527 | 1,524 | 470 | |||||||||||||
$ | 15,968 | $ | 6,027 | $ | 14,137 | $ | 4,954 | ||||||||||
Derivative_contracts_Tables
Derivative contracts (Tables) (Finance and Financial Products [Member]) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Finance and Financial Products [Member] | |||||||||||||||||
Derivative contracts outstanding | A summary of derivative contract liabilities and notional values as of December 31, 2014 and 2013 related to our finance and financial products businesses follows (in millions). | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Liabilities | Notional | Liabilities | Notional | ||||||||||||||
Value | Value | ||||||||||||||||
Equity index put options | $ | 4,560 | $ | 29,469 | -1 | $ | 4,667 | $ | 32,095 | -1 | |||||||
Credit default | 250 | 7,792 | -2 | 648 | 7,792 | -2 | |||||||||||
Other, principally interest rate and foreign currency | — | 16 | |||||||||||||||
$ | 4,810 | $ | 5,331 | ||||||||||||||
-1 | Represents the aggregate undiscounted amount payable at the contract expiration dates assuming that the value of each index is zero at each contract’s expiration date. | ||||||||||||||||
(2) | Represents the maximum undiscounted future value of losses payable under the contracts, if all underlying issuers default and the residual value of the specified obligations is zero. | ||||||||||||||||
Derivative gains/losses included in the Consolidated Statements of Earnings | A summary of the derivative gains/losses included in our Consolidated Statements of Earnings in each of the three years ending December 31, 2014 follows (in millions). | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Equity index put options | $ | 108 | $ | 2,843 | $ | 997 | |||||||||||
Credit default | 397 | (213 | ) | 894 | |||||||||||||
Other, principally interest rate and foreign currency | 1 | (22 | ) | 72 | |||||||||||||
$ | 506 | $ | 2,608 | $ | 1,963 | ||||||||||||
Supplemental_cash_flow_informa1
Supplemental cash flow information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule of supplemental cash flow information | A summary of supplemental cash flow information for each of the three years ending December 31, 2014 is presented in the following table (in millions). | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash paid during the period for: | |||||||||||||
Income taxes | $ | 4,014 | $ | 5,401 | $ | 4,695 | |||||||
Interest: | |||||||||||||
Insurance and other businesses | 360 | 343 | 319 | ||||||||||
Railroad, utilities and energy businesses | 2,487 | 1,958 | 1,829 | ||||||||||
Finance and financial products businesses | 465 | 573 | 653 | ||||||||||
Non-cash investing and financing activities: | |||||||||||||
Liabilities assumed in connection with business acquisitions | 6,334 | 9,224 | 1,751 | ||||||||||
Equity securities exchanged in connection with business acquisitions | 2,478 | — | — | ||||||||||
Borrowings assumed in connection with certain property, plant and equipment additions | — | — | 406 | ||||||||||
Treasury stock acquired in connection with business acquisition | 400 | — | — |
Unpaid_losses_and_loss_adjustm1
Unpaid losses and loss adjustment expenses (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule of liability for unpaid claims and claims adjustment expense | A reconciliation of the changes in liabilities for unpaid losses and loss adjustment expenses of our property/casualty insurance subsidiaries for each of the three years ending December 31, 2014 is as follows (in millions). | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Unpaid losses and loss adjustment expenses: | |||||||||||||
Gross liabilities at beginning of year | $ | 64,866 | $ | 64,160 | $ | 63,819 | |||||||
Ceded losses and deferred charges at beginning of year | (7,414 | ) | (6,944 | ) | (7,092 | ) | |||||||
Net balance at beginning of year | 57,452 | 57,216 | 56,727 | ||||||||||
Incurred losses recorded during the year: | |||||||||||||
Current accident year | 27,771 | 23,027 | 22,239 | ||||||||||
Prior accident years | (1,365 | ) | (1,752 | ) | (2,126 | ) | |||||||
Total incurred losses | 26,406 | 21,275 | 20,113 | ||||||||||
Payments during the year with respect to: | |||||||||||||
Current accident year | (11,289 | ) | (10,154 | ) | (9,667 | ) | |||||||
Prior accident years | (11,381 | ) | (10,978 | ) | (10,628 | ) | |||||||
Total payments | (22,670 | ) | (21,132 | ) | (20,295 | ) | |||||||
Foreign currency translation adjustment | (666 | ) | 93 | 186 | |||||||||
Business acquisitions | 67 | — | 485 | ||||||||||
Unpaid losses and loss adjustment expenses: | |||||||||||||
Net balance at end of year | 60,589 | 57,452 | 57,216 | ||||||||||
Ceded losses and deferred charges at end of year | 10,888 | 7,414 | 6,944 | ||||||||||
Gross liabilities at end of year | $ | 71,477 | $ | 64,866 | $ | 64,160 | |||||||
Notes_payable_and_other_borrow1
Notes payable and other borrowings (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Principal payments disclosure | Principal repayments expected during each of the next five years are as follows (in millions). | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||
Insurance and other | $ | 2,676 | $ | 1,094 | $ | 1,428 | $ | 1,088 | $ | 804 | |||||||||||
Railroad, utilities and energy | 3,043 | 1,642 | 1,677 | 4,241 | 2,885 | ||||||||||||||||
Finance and financial products | 1,725 | 1,204 | 2,924 | 2,365 | 107 | ||||||||||||||||
$ | 7,444 | $ | 3,940 | $ | 6,029 | $ | 7,694 | $ | 3,796 | ||||||||||||
Insurance and Other [Member] | |||||||||||||||||||||
Schedule of short and long term outstanding debt disclosure | Notes payable and other borrowings are summarized below (in millions). The weighted average interest rates and maturity date ranges shown in the following tables are based on borrowings as of December 31, 2014. | ||||||||||||||||||||
Weighted | December 31, | ||||||||||||||||||||
Average | |||||||||||||||||||||
Interest Rate | 2014 | 2013 | |||||||||||||||||||
Insurance and other: | |||||||||||||||||||||
Issued by Berkshire due 2015-2047 | 2.8 | % | $ | 8,354 | $ | 8,311 | |||||||||||||||
Short-term subsidiary borrowings | 0.6 | % | 839 | 949 | |||||||||||||||||
Other subsidiary borrowings due 2015-2035 | 6.1 | % | 2,701 | 3,180 | |||||||||||||||||
$ | 11,894 | $ | 12,440 | ||||||||||||||||||
Railroad, Utilities and Energy [Member] | |||||||||||||||||||||
Schedule of short and long term outstanding debt disclosure | Weighted | December 31, | |||||||||||||||||||
Average | |||||||||||||||||||||
Interest Rate | 2014 | 2013 | |||||||||||||||||||
Railroad, utilities and energy: | |||||||||||||||||||||
Issued by Berkshire Hathaway Energy Company (“BHE”) and its subsidiaries: | |||||||||||||||||||||
BHE senior unsecured debt due 2017-2045 | 5.1 | % | $ | 7,860 | $ | 6,616 | |||||||||||||||
Subsidiary and other debt due 2015-2064 | 5.1 | % | 28,439 | 23,033 | |||||||||||||||||
Issued by BNSF due 2015-2097 | 5 | % | 19,280 | 17,006 | |||||||||||||||||
$ | 55,579 | $ | 46,655 | ||||||||||||||||||
Finance and Financial Products [Member] | |||||||||||||||||||||
Schedule of short and long term outstanding debt disclosure | |||||||||||||||||||||
Weighted | December 31, | ||||||||||||||||||||
Average | |||||||||||||||||||||
Interest Rate | 2014 | 2013 | |||||||||||||||||||
Finance and financial products: | |||||||||||||||||||||
Issued by Berkshire Hathaway Finance Corporation (“BHFC”) due 2015-2043 | 3.1 | % | $ | 11,178 | $ | 11,178 | |||||||||||||||
Issued by other subsidiaries due 2015-2036 | 5.3 | % | 1,558 | 1,951 | |||||||||||||||||
$ | 12,736 | $ | 13,129 | ||||||||||||||||||
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule of income tax liability | The liabilities for income taxes reflected in our Consolidated Balance Sheets are as follows (in millions). | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Currently payable (receivable) | $ | (1,346 | ) | $ | (395 | ) | |||||||
Deferred | 61,936 | 57,442 | |||||||||||
Other | 645 | 692 | |||||||||||
$ | 61,235 | $ | 57,739 | ||||||||||
Schedule of deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are shown below (in millions). | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Investments – unrealized appreciation and cost basis differences | $ | 26,633 | $ | 25,660 | |||||||||
Deferred charges reinsurance assumed | 2,721 | 1,526 | |||||||||||
Property, plant and equipment | 34,618 | 32,409 | |||||||||||
Other | 6,396 | 6,278 | |||||||||||
70,368 | 65,873 | ||||||||||||
Deferred tax assets: | |||||||||||||
Unpaid losses and loss adjustment expenses | (933 | ) | (817 | ) | |||||||||
Unearned premiums | (773 | ) | (682 | ) | |||||||||
Accrued liabilities | (3,575 | ) | (3,398 | ) | |||||||||
Derivative contract liabilities | (206 | ) | (374 | ) | |||||||||
Other | (2,945 | ) | (3,160 | ) | |||||||||
(8,432 | ) | (8,431 | ) | ||||||||||
Net deferred tax liability | $ | 61,936 | $ | 57,442 | |||||||||
Schedule of tax provision by jurisdiction category and classification | Income tax expense reflected in our Consolidated Statements of Earnings for each of the three years ending December 31, 2014 is as follows (in millions). | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal | $ | 6,447 | $ | 8,155 | $ | 5,695 | |||||||
State | 560 | 258 | 384 | ||||||||||
Foreign | 928 | 538 | 845 | ||||||||||
$ | 7,935 | $ | 8,951 | $ | 6,924 | ||||||||
Current | $ | 3,302 | $ | 5,168 | $ | 4,711 | |||||||
Deferred | 4,633 | 3,783 | 2,213 | ||||||||||
$ | 7,935 | $ | 8,951 | $ | 6,924 | ||||||||
Schedule of income tax reconciled to federal statutory amount | Income tax expense is reconciled to hypothetical amounts computed at the U.S. federal statutory rate for each of the three years ending December 31, 2014 in the table below (in millions). | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Earnings before income taxes | $ | 28,105 | $ | 28,796 | $ | 22,236 | |||||||
Hypothetical amounts applicable to above computed at the U.S. federal statutory rate | $ | 9,837 | $ | 10,079 | $ | 7,783 | |||||||
Dividends received deduction and tax exempt interest | (820 | ) | (514 | ) | (518 | ) | |||||||
State income taxes, less U.S. federal income tax benefit | 364 | 168 | 250 | ||||||||||
Foreign tax rate differences | (252 | ) | (256 | ) | (280 | ) | |||||||
U.S. income tax credits | (333 | ) | (457 | ) | (319 | ) | |||||||
Non-taxable exchange of investments | (679 | ) | — | — | |||||||||
Other differences, net | (182 | ) | (69 | ) | 8 | ||||||||
$ | 7,935 | $ | 8,951 | $ | 6,924 | ||||||||
Fair_value_measurements_Tables
Fair value measurements (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | Our financial assets and liabilities are summarized below as of December 31, 2014 and December 31, 2013 with fair values shown according to the fair value hierarchy (in millions). The carrying values of cash and cash equivalents, accounts receivable and accounts payable, accruals and other liabilities are considered to be reasonable estimates of their fair values. | ||||||||||||||||||||
Carrying | Fair Value | Quoted | Significant Other | Significant | |||||||||||||||||
Value | Prices | Observable Inputs | Unobservable Inputs | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Investments in fixed maturity securities: | |||||||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies | $ | 2,930 | $ | 2,930 | $ | 2,264 | $ | 666 | $ | — | |||||||||||
States, municipalities and political subdivisions | 1,912 | 1,912 | — | 1,912 | — | ||||||||||||||||
Foreign governments | 12,270 | 12,270 | 7,981 | 4,289 | — | ||||||||||||||||
Corporate bonds | 8,771 | 8,771 | — | 8,763 | 8 | ||||||||||||||||
Mortgage-backed securities | 1,753 | 1,753 | — | 1,753 | — | ||||||||||||||||
Investments in equity securities | 117,470 | 117,470 | 117,424 | 45 | 1 | ||||||||||||||||
Investment in Heinz Holding Preferred Stock | 7,710 | 8,416 | — | — | 8,416 | ||||||||||||||||
Other investments | 22,324 | 22,324 | 329 | — | 21,995 | ||||||||||||||||
Loans and finance receivables | 12,566 | 12,891 | — | 33 | 12,858 | ||||||||||||||||
Derivative contract assets (1) | 108 | 108 | 1 | 13 | 94 | ||||||||||||||||
Derivative contract liabilities: | |||||||||||||||||||||
Railroad, utilities and energy (1) | 230 | 230 | 18 | 169 | 43 | ||||||||||||||||
Finance and financial products: | |||||||||||||||||||||
Equity index put options | 4,560 | 4,560 | — | — | 4,560 | ||||||||||||||||
Credit default | 250 | 250 | — | — | 250 | ||||||||||||||||
Notes payable and other borrowings: | |||||||||||||||||||||
Insurance and other | 11,894 | 12,484 | — | 12,484 | — | ||||||||||||||||
Railroad, utilities and energy | 55,579 | 62,802 | — | 62,802 | — | ||||||||||||||||
Finance and financial products | 12,736 | 13,417 | — | 12,846 | 571 | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Investments in fixed maturity securities: | |||||||||||||||||||||
U.S. Treasury, U.S. government corporations and agencies | $ | 2,658 | $ | 2,658 | $ | 2,184 | $ | 473 | $ | 1 | |||||||||||
States, municipalities and political subdivisions | 2,345 | 2,345 | — | 2,345 | — | ||||||||||||||||
Foreign governments | 11,073 | 11,073 | 7,467 | 3,606 | — | ||||||||||||||||
Corporate bonds | 11,237 | 11,254 | — | 10,187 | 1,067 | ||||||||||||||||
Mortgage-backed securities | 2,040 | 2,040 | — | 2,040 | — | ||||||||||||||||
Investments in equity securities | 117,505 | 117,505 | 117,438 | 60 | 7 | ||||||||||||||||
Investment in Heinz Holding Preferred Stock | 7,710 | 7,971 | — | — | 7,971 | ||||||||||||||||
Other investments | 17,951 | 17,951 | — | — | 17,951 | ||||||||||||||||
Loans and finance receivables | 12,826 | 12,002 | — | 454 | 11,548 | ||||||||||||||||
Derivative contract assets (1) | 87 | 87 | 3 | 15 | 69 | ||||||||||||||||
Derivative contract liabilities: | |||||||||||||||||||||
Railroad, utilities and energy (1) | 208 | 208 | 1 | 198 | 9 | ||||||||||||||||
Finance and financial products: | |||||||||||||||||||||
Equity index put options | 4,667 | 4,667 | — | — | 4,667 | ||||||||||||||||
Credit default | 648 | 648 | — | — | 648 | ||||||||||||||||
Notes payable and other borrowings: | |||||||||||||||||||||
Insurance and other | 12,440 | 12,655 | — | 12,655 | — | ||||||||||||||||
Railroad, utilities and energy | 46,655 | 49,879 | — | 49,879 | — | ||||||||||||||||
Finance and financial products | 13,129 | 13,505 | — | 12,846 | 659 | ||||||||||||||||
(1) | Assets are included in other assets and liabilities are included in accounts payable, accruals and other liabilities. | ||||||||||||||||||||
Reconciliations of assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) | Reconciliations of assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for each of three years ending December 31, 2014 follow (in millions). | ||||||||||||||||||||
Investments | Investments | Net | |||||||||||||||||||
in fixed | in equity | derivative | |||||||||||||||||||
maturity | securities | contract | |||||||||||||||||||
securities | and other | liabilities | |||||||||||||||||||
investments | |||||||||||||||||||||
Balance at December 31, 2011 | $ | 784 | $ | 11,691 | $ | (9,908 | ) | ||||||||||||||
Gains (losses) included in: | |||||||||||||||||||||
Earnings | — | — | 1,873 | ||||||||||||||||||
Other comprehensive income | 5 | 4,094 | — | ||||||||||||||||||
Regulatory assets and liabilities | — | — | (2 | ) | |||||||||||||||||
Acquisitions, dispositions and settlements | (8 | ) | — | 190 | |||||||||||||||||
Transfers into (out of) Level 3 | (129 | ) | — | — | |||||||||||||||||
Balance at December 31, 2012 | 652 | 15,785 | (7,847 | ) | |||||||||||||||||
Gains (losses) included in: | |||||||||||||||||||||
Earnings | 312 | 522 | 2,652 | ||||||||||||||||||
Other comprehensive income | (14 | ) | 3,177 | (1 | ) | ||||||||||||||||
Regulatory assets and liabilities | — | — | 1 | ||||||||||||||||||
Dispositions and settlements | (578 | ) | (31 | ) | (60 | ) | |||||||||||||||
Transfers into (out of) Level 3 | — | (1,495 | ) | — | |||||||||||||||||
Balance at December 31, 2013 | 372 | 17,958 | (5,255 | ) | |||||||||||||||||
Gains (losses) included in: | |||||||||||||||||||||
Earnings | — | — | 524 | ||||||||||||||||||
Other comprehensive income | 13 | 1,373 | — | ||||||||||||||||||
Regulatory assets and liabilities | — | — | 5 | ||||||||||||||||||
Acquisitions | — | 3,000 | 1 | ||||||||||||||||||
Dispositions and settlements | (2 | ) | — | 1 | |||||||||||||||||
Transfers into (out of) Level 3 | (375 | ) | (335 | ) | (35 | ) | |||||||||||||||
Balance at December 31, 2014 | $ | 8 | $ | 21,996 | $ | (4,759 | ) | ||||||||||||||
Fair value assets and liabilities measured on recurring basis, unobservable inputs, additional information | Quantitative information as of December 31, 2014, with respect to assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) follows (in millions). | ||||||||||||||||||||
Fair value | Principal valuation | Unobservable Inputs | Weighted | ||||||||||||||||||
techniques | Average | ||||||||||||||||||||
Other investments: | |||||||||||||||||||||
Preferred stocks | $ | 14,819 | Discounted cash flow | Expected duration | 7 years | ||||||||||||||||
Discount for transferability | 147 basis points | ||||||||||||||||||||
restrictions and subordination | |||||||||||||||||||||
Common stock warrants | 7,175 | Warrant pricing model | Discount for transferability | 7 | % | ||||||||||||||||
and hedging restrictions | |||||||||||||||||||||
Net derivative liabilities: | |||||||||||||||||||||
Equity index put options | 4,560 | Option pricing model | Volatility | 21 | % | ||||||||||||||||
Credit default municipalities | 250 | Discounted cash flow | Credit spreads | 36 basis points |
Common_stock_Tables
Common stock (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Changes in issued, treasury and outstanding Berkshire common stock | Changes in Berkshire’s issued, treasury and outstanding common stock during the three years ending December 31, 2014 are shown in the table below. | ||||||||||||||||||||||||
Class A, $5 Par Value | Class B, $0.0033 Par Value | ||||||||||||||||||||||||
(1,650,000 shares authorized) | (3,225,000,000 shares authorized) | ||||||||||||||||||||||||
Issued | Treasury | Outstanding | Issued | Treasury | Outstanding | ||||||||||||||||||||
Balance at December 31, 2011 | 938,342 | (98 | ) | 938,244 | 1,069,645,361 | (801,985 | ) | 1,068,843,376 | |||||||||||||||||
Conversions of Class A common stock to Class B common stock and exercises of replacement stock options issued in a business acquisition | (33,814 | ) | — | (33,814 | ) | 53,748,595 | — | 53,748,595 | |||||||||||||||||
Treasury shares acquired | — | (9,475 | ) | (9,475 | ) | — | (606,499 | ) | (606,499 | ) | |||||||||||||||
Balance at December 31, 2012 | 904,528 | (9,573 | ) | 894,955 | 1,123,393,956 | (1,408,484 | ) | 1,121,985,472 | |||||||||||||||||
Conversions of Class A common stock to Class B common stock and exercises of replacement stock options issued in a business acquisition | (35,912 | ) | — | (35,912 | ) | 55,381,136 | — | 55,381,136 | |||||||||||||||||
Balance at December 31, 2013 | 868,616 | (9,573 | ) | 859,043 | 1,178,775,092 | (1,408,484 | ) | 1,177,366,608 | |||||||||||||||||
Conversions of Class A common stock to Class B common stock and exercises of replacement stock options issued in a business acquisition | (30,597 | ) | — | (30,597 | ) | 47,490,158 | — | 47,490,158 | |||||||||||||||||
Treasury shares acquired | — | (2,107 | ) | (2,107 | ) | — | (1,278 | ) | (1,278 | ) | |||||||||||||||
Balance at December 31, 2014 | 838,019 | (11,680 | ) | 826,339 | 1,226,265,250 | (1,409,762 | ) | 1,224,855,488 | |||||||||||||||||
Accumulated_other_comprehensiv1
Accumulated other comprehensive income (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Schedule of accumulated other comprehensive income | A summary of the net changes in after-tax accumulated other comprehensive income attributable to Berkshire Hathaway shareholders for each of the three years ending December 31, 2014 and significant amounts reclassified out of accumulated other comprehensive income for each of the years ending December 31, 2014 and 2013 follows (in millions). | ||||||||||||||||||||
Unrealized | Foreign | Prior service | Other | Accumulated | |||||||||||||||||
appreciation of | currency | and actuarial | other | ||||||||||||||||||
investments, net | translation | gains/losses of | comprehensive | ||||||||||||||||||
defined benefit | income | ||||||||||||||||||||
pension plans | |||||||||||||||||||||
Balance at December 31, 2011 | $ | 19,626 | $ | (383 | ) | $ | (1,589 | ) | $ | — | $ | 17,654 | |||||||||
Other comprehensive income, net | 9,647 | 267 | (21 | ) | (47 | ) | 9,846 | ||||||||||||||
Transactions with noncontrolling interests | (19 | ) | (4 | ) | 9 | 14 | — | ||||||||||||||
9,628 | 263 | (12 | ) | (33 | ) | 9,846 | |||||||||||||||
Balance at December 31, 2012 | 29,254 | (120 | ) | (1,601 | ) | (33 | ) | 27,500 | |||||||||||||
Other comprehensive income, net before reclassifications | 16,379 | 25 | 1,534 | 106 | 18,044 | ||||||||||||||||
Reclassifications from accumulated other comprehensive income | (1,591 | ) | (31 | ) | 114 | 10 | (1,498 | ) | |||||||||||||
Transactions with noncontrolling interests | — | (20 | ) | (1 | ) | — | (21 | ) | |||||||||||||
14,788 | (26 | ) | 1,647 | 116 | 16,525 | ||||||||||||||||
Balance at December 31, 2013 | 44,042 | (146 | ) | 46 | 83 | 44,025 | |||||||||||||||
Other comprehensive income, net before reclassifications | 3,778 | (1,877 | ) | (1,130 | ) | 31 | 802 | ||||||||||||||
Reclassifications from accumulated other comprehensive income | (2,184 | ) | 66 | 45 | (22 | ) | (2,095 | ) | |||||||||||||
1,594 | (1,811 | ) | (1,085 | ) | 9 | (1,293 | ) | ||||||||||||||
Balance at December 31, 2014 | $ | 45,636 | $ | (1,957 | ) | $ | (1,039 | ) | $ | 92 | $ | 42,732 | |||||||||
Reclassifications from other comprehensive income into net earnings are included on the following line items: | |||||||||||||||||||||
Year ending December 31, 2013: | |||||||||||||||||||||
Investment gains/losses: | |||||||||||||||||||||
Insurance and other | $ | (2,382 | ) | $ | — | $ | — | $ | — | $ | (2,382 | ) | |||||||||
Finance and financial products | (65 | ) | — | — | — | (65 | ) | ||||||||||||||
Other | — | (31 | ) | 167 | 17 | 153 | |||||||||||||||
Reclassifications before income taxes | (2,447 | ) | (31 | ) | 167 | 17 | (2,294 | ) | |||||||||||||
Applicable income taxes | (856 | ) | — | 53 | 7 | (796 | ) | ||||||||||||||
$ | (1,591 | ) | $ | (31 | ) | $ | 114 | $ | 10 | $ | (1,498 | ) | |||||||||
Year ending December 31, 2014: | |||||||||||||||||||||
Investment gains/losses: | |||||||||||||||||||||
Insurance and other | $ | (3,288 | ) | $ | — | $ | — | $ | — | $ | (3,288 | ) | |||||||||
Finance and financial products | (72 | ) | — | — | — | (72 | ) | ||||||||||||||
Other | — | 75 | 58 | (39 | ) | 94 | |||||||||||||||
Reclassifications before income taxes | (3,360 | ) | 75 | 58 | (39 | ) | (3,266 | ) | |||||||||||||
Applicable income taxes | (1,176 | ) | 9 | 13 | (17 | ) | (1,171 | ) | |||||||||||||
$ | (2,184 | ) | $ | 66 | $ | 45 | $ | (22 | ) | $ | (2,095 | ) | |||||||||
Pension_plans_Tables
Pension plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Schedule of net periodic pension expense | The components of net periodic pension expense for each of the three years ending December 31, 2014 are as follows (in millions). | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Service cost | $ | 230 | $ | 254 | $ | 247 | |||||||||||||||||||
Interest cost | 629 | 547 | 583 | ||||||||||||||||||||||
Expected return on plan assets | (772 | ) | (634 | ) | (610 | ) | |||||||||||||||||||
Amortization of actuarial losses and other | 102 | 225 | 220 | ||||||||||||||||||||||
Net periodic pension expense | $ | 189 | $ | 392 | $ | 440 | |||||||||||||||||||
Schedule of changes in projected benefit obligations, changes in plan assets and net funded status | Reconciliations of the changes in plan assets and PBOs related to BHE’s pension plans and all other pension plans for each of the two years ending December 31, 2014 are in the following tables (in millions). BHE’s pension plans cover employees of its various regulated subsidiaries. The costs associated with these regulated operations are generally recoverable through the regulated rate making process. | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
BHE | All other | Consolidated | BHE | All other | Consolidated | ||||||||||||||||||||
Benefit obligations | |||||||||||||||||||||||||
Accumulated benefit obligation at end of year | $ | 5,105 | $ | 9,522 | $ | 14,627 | $ | 4,664 | $ | 8,101 | $ | 12,765 | |||||||||||||
PBO at beginning of year | $ | 5,006 | $ | 8,892 | $ | 13,898 | $ | 4,284 | $ | 9,789 | $ | 14,073 | |||||||||||||
Service cost | 60 | 170 | 230 | 46 | 208 | 254 | |||||||||||||||||||
Interest cost | 226 | 403 | 629 | 172 | 375 | 547 | |||||||||||||||||||
Benefits paid | (310 | ) | (524 | ) | (834 | ) | (275 | ) | (505 | ) | (780 | ) | |||||||||||||
Business acquisitions | — | 11 | 11 | 823 | — | 823 | |||||||||||||||||||
Actuarial (gains) or losses and other | 416 | 1,537 | 1,953 | (44 | ) | (975 | ) | (1,019 | ) | ||||||||||||||||
PBO at end of year | $ | 5,398 | $ | 10,489 | $ | 15,887 | $ | 5,006 | $ | 8,892 | $ | 13,898 | |||||||||||||
Plan assets | |||||||||||||||||||||||||
Plan assets at beginning of year | $ | 4,888 | $ | 8,389 | $ | 13,277 | $ | 3,651 | $ | 6,785 | $ | 10,436 | |||||||||||||
Employer contributions | 126 | 122 | 248 | 150 | 274 | 424 | |||||||||||||||||||
Benefits paid | (310 | ) | (524 | ) | (834 | ) | (275 | ) | (505 | ) | (780 | ) | |||||||||||||
Actual return on plan assets | 525 | 338 | 863 | 497 | 1,849 | 2,346 | |||||||||||||||||||
Business acquisitions | — | 1 | 1 | 818 | — | 818 | |||||||||||||||||||
Other | (143 | ) | (46 | ) | (189 | ) | 47 | (14 | ) | 33 | |||||||||||||||
Plan assets at end of year | $ | 5,086 | $ | 8,280 | $ | 13,366 | $ | 4,888 | $ | 8,389 | $ | 13,277 | |||||||||||||
Net funded status – net liability | $ | 312 | $ | 2,209 | $ | 2,521 | $ | 118 | $ | 503 | $ | 621 | |||||||||||||
Schedule of weighted average interest rate assumptions | Weighted average interest rate assumptions used in determining projected benefit obligations and net periodic pension expense were as follows. | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Applicable to pension benefit obligations: | |||||||||||||||||||||||||
Discount rate | 3.8 | % | 4.6 | % | |||||||||||||||||||||
Expected long-term rate of return on plan assets | 6.7 | 6.7 | |||||||||||||||||||||||
Rate of compensation increase | 3.4 | 3.5 | |||||||||||||||||||||||
Discount rate applicable to net periodic pension expense | 4.6 | 4.1 | |||||||||||||||||||||||
Schedule of net funded status of pension plans | The net funded status is recognized in our Consolidated Balance Sheets as follows (in millions). | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Accounts payable, accruals and other liabilities | $ | 2,550 | $ | 1,287 | |||||||||||||||||||||
Losses and loss adjustment expenses | 332 | 309 | |||||||||||||||||||||||
Other assets | (361 | ) | (975 | ) | |||||||||||||||||||||
$ | 2,521 | $ | 621 | ||||||||||||||||||||||
Schedule of fair value measurements by major categories of plan assets | Fair value measurements of plan assets as of December 31, 2014 and 2013 follow (in millions). | ||||||||||||||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||||||||||||||
Fair Value | (Level 1) | Other | Unobservable | ||||||||||||||||||||||
Observable | Inputs | ||||||||||||||||||||||||
Inputs | (Level 3) | ||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Cash and equivalents | $ | 482 | $ | 250 | $ | 232 | $ | — | |||||||||||||||||
Equity securities | 7,950 | 7,739 | 211 | — | |||||||||||||||||||||
Government obligations | 811 | 701 | 110 | — | |||||||||||||||||||||
Other fixed maturity securities | 908 | 67 | 841 | — | |||||||||||||||||||||
Investment funds and other | 3,215 | 595 | 2,287 | 333 | |||||||||||||||||||||
$ | 13,366 | $ | 9,352 | $ | 3,681 | $ | 333 | ||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Cash and equivalents | $ | 595 | $ | 355 | $ | 240 | $ | — | |||||||||||||||||
Equity securities | 7,844 | 7,684 | 160 | — | |||||||||||||||||||||
Government obligations | 891 | 607 | 284 | — | |||||||||||||||||||||
Other fixed maturity securities | 901 | 81 | 820 | — | |||||||||||||||||||||
Investment funds and other | 3,046 | 577 | 2,156 | 313 | |||||||||||||||||||||
$ | 13,277 | $ | 9,304 | $ | 3,660 | $ | 313 | ||||||||||||||||||
Schedule of pension plan amounts recognized In accumulated other comprehensive income | A reconciliation of the pre-tax accumulated other comprehensive income (loss) related to defined benefit pension plans for each of the two years ending December 31, 2014 follows (in millions). | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Balance at beginning of year | $ | 86 | $ | (2,516 | ) | ||||||||||||||||||||
Amount included in net periodic pension expense | 55 | 167 | |||||||||||||||||||||||
Gains (losses) current period and other | (1,755 | ) | 2,435 | ||||||||||||||||||||||
Balance at end of year | $ | (1,614 | ) | $ | 86 | ||||||||||||||||||||
Contingencies_and_Commitments_
Contingencies and Commitments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Schedule of minimum rental payments for operating leases | Future minimum rental payments or operating leases having initial or remaining non-cancellable terms in excess of one year are as follows. Amounts are in millions. | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | After | Total | |||||||||||||||||||
2019 | |||||||||||||||||||||||||
$1,279 | $ | 1,159 | $ | 1,001 | $ | 847 | $ | 751 | $ | 3,605 | $ | 8,642 |
Business_segment_data_Tables
Business segment data (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Schedule of revenues, earnings before income taxes, capital expenditures, depreciation, goodwill and identifiable assets by segment | A disaggregation of our consolidated data for each of the three most recent years is presented in the tables which follow (in millions). | ||||||||||||||||||||||||
Revenues | Earnings before income taxes | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Operating Businesses: | |||||||||||||||||||||||||
Insurance group: | |||||||||||||||||||||||||
Underwriting: | |||||||||||||||||||||||||
GEICO | $ | 20,496 | $ | 18,572 | $ | 16,740 | $ | 1,159 | $ | 1,127 | $ | 680 | |||||||||||||
General Re | 6,264 | 5,984 | 5,870 | 277 | 283 | 355 | |||||||||||||||||||
Berkshire Hathaway Reinsurance Group | 10,116 | 8,786 | 9,672 | 606 | 1,294 | 304 | |||||||||||||||||||
Berkshire Hathaway Primary Group | 4,377 | 3,342 | 2,263 | 626 | 385 | 286 | |||||||||||||||||||
Investment income | 4,370 | 4,735 | 4,474 | 4,357 | 4,713 | 4,454 | |||||||||||||||||||
Total insurance group | 45,623 | 41,419 | 39,019 | 7,025 | 7,802 | 6,079 | |||||||||||||||||||
BNSF | 23,239 | 22,014 | 20,835 | 6,169 | 5,928 | 5,377 | |||||||||||||||||||
Berkshire Hathaway Energy | 17,614 | 12,743 | 11,747 | 2,711 | 1,806 | 1,644 | |||||||||||||||||||
McLane Company | 46,640 | 45,930 | 37,437 | 435 | 486 | 403 | |||||||||||||||||||
Manufacturing | 36,773 | 34,258 | 32,105 | 4,811 | 4,205 | 3,911 | |||||||||||||||||||
Service and retailing | 14,276 | 13,284 | 11,890 | 1,546 | 1,469 | 1,272 | |||||||||||||||||||
Finance and financial products | 6,526 | 6,110 | 5,933 | 1,839 | 1,564 | 1,393 | |||||||||||||||||||
190,691 | 175,758 | 158,966 | 24,536 | 23,260 | 20,079 | ||||||||||||||||||||
Reconciliation of segments to consolidated amount: | |||||||||||||||||||||||||
Investment and derivative gains/losses | 4,081 | 6,673 | 3,425 | 4,081 | 6,673 | 3,425 | |||||||||||||||||||
Interest expense, not allocated to segments | — | — | — | (313 | ) | (303 | ) | (271 | ) | ||||||||||||||||
Eliminations and other | (99 | ) | (281 | ) | 72 | (199 | ) | (834 | ) | (997 | ) | ||||||||||||||
$ | 194,673 | $ | 182,150 | $ | 162,463 | $ | 28,105 | $ | 28,796 | $ | 22,236 | ||||||||||||||
Capital expenditures | Depreciation of tangible assets | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Operating Businesses: | |||||||||||||||||||||||||
Insurance group | $ | 94 | $ | 89 | $ | 61 | $ | 69 | $ | 58 | $ | 57 | |||||||||||||
BNSF | 5,243 | 3,918 | 3,548 | 1,804 | 1,655 | 1,573 | |||||||||||||||||||
Berkshire Hathaway Energy | 6,555 | 4,307 | 3,380 | 2,177 | 1,577 | 1,440 | |||||||||||||||||||
McLane Company | 241 | 225 | 225 | 159 | 159 | 149 | |||||||||||||||||||
Manufacturing | 1,324 | 1,037 | 1,062 | 943 | 1,061 | 1,068 | |||||||||||||||||||
Service and retailing | 591 | 488 | 381 | 461 | 413 | 379 | |||||||||||||||||||
Finance and financial products | 1,137 | 1,023 | 1,118 | 602 | 495 | 480 | |||||||||||||||||||
$ | 15,185 | $ | 11,087 | $ | 9,775 | $ | 6,215 | $ | 5,418 | $ | 5,146 | ||||||||||||||
Goodwill | Identifiable assets | ||||||||||||||||||||||||
at year-end | at year-end | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2012 | |||||||||||||||||||||
Operating Businesses: | |||||||||||||||||||||||||
Insurance group: | |||||||||||||||||||||||||
GEICO | $ | 1,370 | $ | 1,372 | $ | 45,439 | $ | 39,568 | $ | 30,986 | |||||||||||||||
General Re | 13,527 | 13,532 | 28,692 | 29,956 | 30,477 | ||||||||||||||||||||
Berkshire Hathaway Reinsurance and Primary Groups | 650 | 607 | 151,301 | 138,480 | 118,819 | ||||||||||||||||||||
Total insurance group | 15,547 | 15,511 | 225,432 | 208,004 | 180,282 | ||||||||||||||||||||
BNSF | 14,819 | 14,819 | 62,916 | 59,842 | 56,839 | ||||||||||||||||||||
Berkshire Hathaway Energy | 9,599 | 7,784 | 71,482 | 62,189 | 46,856 | ||||||||||||||||||||
McLane Company | 657 | 701 | 5,419 | 5,209 | 5,090 | ||||||||||||||||||||
Manufacturing | 14,818 | 13,341 | 34,509 | 34,100 | 32,097 | ||||||||||||||||||||
Service and retailing | 3,937 | 3,514 | 11,303 | 10,051 | 9,566 | ||||||||||||||||||||
Finance and financial products | 1,337 | 1,341 | 32,164 | 31,886 | 30,854 | ||||||||||||||||||||
$ | 60,714 | $ | 57,011 | 443,225 | 411,281 | 361,584 | |||||||||||||||||||
Reconciliation of segments to consolidated amount: | |||||||||||||||||||||||||
Corporate and other | 22,247 | 16,639 | 11,345 | ||||||||||||||||||||||
Goodwill | 60,714 | 57,011 | 54,523 | ||||||||||||||||||||||
$ | 526,186 | $ | 484,931 | $ | 427,452 | ||||||||||||||||||||
Schedule of insurance premiums written by geographic region | Insurance premiums written by geographic region (based upon the domicile of the insured or reinsured) are summarized below. Dollars are in millions. | ||||||||||||||||||||||||
Property/Casualty | Life/Health | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
United States | $ | 31,362 | $ | 25,704 | $ | 23,186 | $ | 3,402 | $ | 3,934 | $ | 3,504 | |||||||||||||
Western Europe | 2,424 | 2,234 | 4,387 | 1,135 | 1,339 | 1,114 | |||||||||||||||||||
All other | 2,805 | 2,973 | 2,319 | 1,305 | 1,026 | 1,217 | |||||||||||||||||||
$ | 36,591 | $ | 30,911 | $ | 29,892 | $ | 5,842 | $ | 6,299 | $ | 5,835 | ||||||||||||||
Schedule of premiums written and earned | Premiums written and earned by the property/casualty and life/health insurance businesses are summarized below (in millions). | ||||||||||||||||||||||||
Property/Casualty | Life/Health | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Premiums Written: | |||||||||||||||||||||||||
Direct | $ | 27,541 | $ | 24,292 | $ | 20,796 | $ | 879 | $ | 931 | $ | 554 | |||||||||||||
Assumed | 9,889 | 7,339 | 9,668 | 5,030 | 5,437 | 5,391 | |||||||||||||||||||
Ceded | (839 | ) | (720 | ) | (572 | ) | (67 | ) | (69 | ) | (110 | ) | |||||||||||||
$ | 36,591 | $ | 30,911 | $ | 29,892 | $ | 5,842 | $ | 6,299 | $ | 5,835 | ||||||||||||||
Premiums Earned: | |||||||||||||||||||||||||
Direct | $ | 26,389 | $ | 23,267 | $ | 20,204 | $ | 879 | $ | 931 | $ | 554 | |||||||||||||
Assumed | 9,872 | 7,928 | 9,142 | 5,030 | 5,425 | 5,356 | |||||||||||||||||||
Ceded | (850 | ) | (797 | ) | (600 | ) | (67 | ) | (70 | ) | (111 | ) | |||||||||||||
$ | 35,411 | $ | 30,398 | $ | 28,746 | $ | 5,842 | $ | 6,286 | $ | 5,799 | ||||||||||||||
Quarterly_data_Tables
Quarterly data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule of quarterly revenues and earnings | A summary of revenues and earnings by quarter for each of the last two years is presented in the following table. This information is unaudited. Dollars are in millions, except per share amounts. | ||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
2014 | |||||||||||||||||
Revenues | $ | 45,453 | $ | 49,762 | $ | 51,199 | $ | 48,259 | |||||||||
Net earnings attributable to Berkshire shareholders * | 4,705 | 6,395 | 4,617 | 4,155 | |||||||||||||
Net earnings attributable to Berkshire shareholders per equivalent Class A common share | 2,862 | 3,889 | 2,811 | 2,529 | |||||||||||||
2013 | |||||||||||||||||
Revenues | $ | 43,867 | $ | 44,693 | $ | 46,541 | $ | 47,049 | |||||||||
Net earnings attributable to Berkshire shareholders * | 4,892 | 4,541 | 5,053 | 4,990 | |||||||||||||
Net earnings attributable to Berkshire shareholders per equivalent Class A common share | 2,977 | 2,763 | 3,074 | 3,035 | |||||||||||||
* | Includes realized investment gains/losses, other-than-temporary impairment losses on investments and derivative gains/losses. Derivative gains/losses include significant amounts related to non-cash changes in the fair value of long-term contracts arising from short-term changes in equity prices, interest rates and foreign currency rates, among other factors. After-tax investment and derivative gains/losses for the periods presented above are as follows (in millions): | ||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Investment and derivative gains/losses – 2014 | $ | 1,172 | $ | 2,064 | $ | (107 | ) | $ | 192 | ||||||||
Investment and derivative gains/losses – 2013 | 1,110 | 622 | 1,391 | 1,214 |
Significant_accounting_policie2
Significant accounting policies - Narrative (Detail) (USD $) | 12 Months Ended | 144 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Inventories | |||
Percentage of LIFO inventory | 43.00% | 43.00% | |
Percentage of FIFO inventory | 33.00% | 33.00% | |
Difference between LIFO cost and FIFO cost for inventory measured using LIFO | $857 | $857 | $796 |
Losses and loss adjustment expenses | |||
Workers compensation discount rate, before January 1, 2003 | 4.50% | 4.50% | |
Workers compensation discount rate, since January 1, 2003 | 1.00% | ||
Insurance policy acquisition costs | |||
Unamortized balances of deferred policy acquisition costs | 1,722 | 1,722 | 1,601 |
Life, annuity and health insurance benefits | |||
Life insurance interest rate assumption, lower end of range | 1.00% | ||
Life insurance interest rate assumption, higher end of range | 7.00% | ||
Annuities interest rate assumption, lower end of range | 1.00% | ||
Annuities interest rate assumption, higher end of range | 7.00% | ||
Regulated utilities and energy businesses | |||
Regulatory assets | 4,253 | 4,253 | 3,515 |
Regulatory liabilities | 2,832 | 2,832 | 2,665 |
Other Assets [Member] | |||
Deferred charges reinsurance assumed | |||
Unamortized balances of deferred charges reinsurance assumed | $7,772 | $7,772 | $4,359 |
Significant_business_acquisiti2
Significant business acquisitions - Narrative (Detail) | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 19, 2013 | Dec. 19, 2013 | Dec. 01, 2014 | Dec. 01, 2014 | Jan. 01, 2014 | Feb. 25, 2014 | Feb. 25, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
USD ($) | USD ($) | Class A [Member] | Class A [Member] | Class B [Member] | Class B [Member] | Berkshire Hathaway Energy [Member] | NV Energy [Member] | AltaLink [Member] | AltaLink [Member] | IMI plc Beverage Dispensing Equipment Manufacturing and Merchandising Operations [Member] | Lubrizol Specialty Products Inc. (formerly Phillips Specialty Products Inc.) [Member] | Lubrizol Specialty Products Inc. (formerly Phillips Specialty Products Inc.) [Member] | WPLG Inc. [Member] | WPLG Inc. [Member] | WPLG Inc. [Member] | WPLG Inc. [Member] | IMI plc, Lubrizol Specialty Products Inc. and WPLG Inc.[Member] | Series of Individually Immaterial Business Acquisitions [Member] | Series of Individually Immaterial Business Acquisitions [Member] | Series of Individually Immaterial Business Acquisitions [Member] | Renewable Energy Generation Entities [Member] | |
Berkshire Hathaway Energy [Member] | Berkshire Hathaway Energy [Member] | Berkshire Hathaway Energy [Member] | USD ($) | USD ($) | PSX [Member] | USD ($) | Class A [Member] | Class B [Member] | Graham Holding Company [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||
USD ($) | USD ($) | CAD | USD ($) | USD ($) | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Ownership percentage | 89.90% | 100.00% | ||||||||||||||||||||
Aggregate consideration paid for acquisitions | $5,600,000,000 | $2,700,000,000 | 3,100,000,000 | $1,120,000,000 | $1,800,000,000 | $1,100,000,000 | $3,200,000,000 | $438,000,000 | ||||||||||||||
Number of shares exchanged | 17,422,615 | 1,620,190 | ||||||||||||||||||||
Fair value of shares exchanged | 2,478,000,000 | 1,350,000,000 | 1,130,000,000 | |||||||||||||||||||
Cash and cash equivalents acquired | 450,000,000 | 328,000,000 | ||||||||||||||||||||
Number of shares acquired | 2,107 | 9,475 | 1,278 | 606,499 | 2,107 | 1,278 | ||||||||||||||||
Fair value of identified net assets | 2,200,000,000 | |||||||||||||||||||||
Residual goodwill | $4,006,000,000 | $2,732,000,000 | $1,400,000,000 |
Significant_business_acquisiti3
Significant business acquisitions - Estimated fair values of assets acquired and liabilities assumed (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 01, 2014 | Dec. 19, 2013 |
In Millions, unless otherwise specified | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $60,714 | $57,011 | $54,523 | ||
AltaLink [Member] | |||||
Business Acquisition [Line Items] | |||||
Property, plant and equipment | 5,610 | ||||
Goodwill | 1,700 | ||||
Other assets, including cash and cash equivalents | 294 | ||||
Assets acquired | 7,604 | ||||
Accounts payable, accruals and other liabilities | 1,025 | ||||
Notes payable and other borrowings | 3,851 | ||||
Liabilities assumed | 4,876 | ||||
Net assets acquired | 2,728 | ||||
NV Energy [Member] | |||||
Business Acquisition [Line Items] | |||||
Property, plant and equipment | 9,511 | ||||
Goodwill | 2,369 | ||||
Other assets, including cash and cash equivalents | 2,506 | ||||
Assets acquired | 14,386 | ||||
Accounts payable, accruals and other liabilities | 3,456 | ||||
Notes payable and other borrowings | 5,334 | ||||
Liabilities assumed | 8,790 | ||||
Net assets acquired | $5,596 |
Significant_business_acquisiti4
Significant business acquisitions - Pro forma consolidated earnings data (Detail) (NV Energy, AltaLink, IMI plc, Lubrizol Specialty Products Inc. and WPLG Inc. [Member], USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
NV Energy, AltaLink, IMI plc, Lubrizol Specialty Products Inc. and WPLG Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Revenues | $195,298 | $186,664 |
Net earnings attributable to Berkshire Hathaway shareholders | $19,975 | $19,845 |
Net earnings per equivalent Class A common share attributable to Berkshire Hathaway shareholders | $12,154 | $12,074 |
Investments_in_fixed_maturity_2
Investments in fixed maturity securities (Detail) (Fixed Maturities [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Summary of Investment Holdings [Line Items] | ||
Amortized cost of fixed maturity securities | $26,023 | $27,764 |
Unrealized gains on fixed maturity securities | 1,754 | 1,735 |
Unrealized losses on fixed maturity securities | -141 | -146 |
Fair value of fixed maturity securities | 27,636 | 29,353 |
U.S. Treasury, U.S. government corporations and agencies [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Amortized cost of fixed maturity securities | 2,921 | 2,650 |
Unrealized gains on fixed maturity securities | 14 | 16 |
Unrealized losses on fixed maturity securities | -5 | -8 |
Fair value of fixed maturity securities | 2,930 | 2,658 |
States, municipalities and political subdivisions [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Amortized cost of fixed maturity securities | 1,820 | 2,221 |
Unrealized gains on fixed maturity securities | 93 | 129 |
Unrealized losses on fixed maturity securities | -1 | -5 |
Fair value of fixed maturity securities | 1,912 | 2,345 |
Foreign governments [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Amortized cost of fixed maturity securities | 12,023 | 11,001 |
Unrealized gains on fixed maturity securities | 373 | 182 |
Unrealized losses on fixed maturity securities | -126 | -110 |
Fair value of fixed maturity securities | 12,270 | 11,073 |
Corporate bonds [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Amortized cost of fixed maturity securities | 7,704 | 10,062 |
Unrealized gains on fixed maturity securities | 1,072 | 1,190 |
Unrealized losses on fixed maturity securities | -5 | -15 |
Fair value of fixed maturity securities | 8,771 | 11,237 |
Mortgage-backed securities [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Amortized cost of fixed maturity securities | 1,555 | 1,830 |
Unrealized gains on fixed maturity securities | 202 | 218 |
Unrealized losses on fixed maturity securities | -4 | -8 |
Fair value of fixed maturity securities | $1,753 | $2,040 |
Investments_in_fixed_maturity_3
Investments in fixed maturity securities - Carrying value by segment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Insurance and Other [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Investments in fixed maturity securities | $27,397 | $28,785 |
Fixed Maturities [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Investments in fixed maturity securities | 27,636 | 29,353 |
Fixed Maturities [Member] | Insurance and Other [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Investments in fixed maturity securities | 27,397 | 28,785 |
Fixed Maturities [Member] | Finance and Financial Products [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Investments in fixed maturity securities | $239 | $568 |
Investments_in_fixed_maturity_4
Investments in fixed maturity securities - Narrative (Detail) (Fixed Maturities [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Summary of Investment Holdings [Line Items] | ||
Unrealized losses related to securities that have been in an unrealized loss position for more than 12 months | $15 | $26 |
Foreign governments [Member] | United Kingdom, Germany, Australia, Canada or The Netherlands [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of fixed maturity investments by geographic location | 77.00% | |
Foreign governments [Member] | AA or Higher Credit Rating [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of fixed maturity investments by credit rating | 93.00% |
Investments_in_fixed_maturity_5
Investments in fixed maturity securities - Amortized cost and estimated fair value of securities with fixed maturities (Detail) (Fixed Maturities [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Summary of Investment Holdings [Line Items] | ||
Due in one year or less - amortized cost | $7,650 | |
Due after one year through five years - amortized cost | 11,341 | |
Due after five years through ten years - amortized cost | 2,782 | |
Due after ten years - amortized cost | 2,695 | |
Amortized cost of fixed maturity securities | 26,023 | 27,764 |
Due in one year or less - fair value | 7,585 | |
Due after one year through five years - fair value | 11,994 | |
Due after five years through ten years - fair value | 3,009 | |
Due after ten years - fair value | 3,295 | |
Fair value of fixed maturity securities | 27,636 | 29,353 |
Mortgage-backed securities [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Amortized cost of mortgage-backed securities | 1,555 | |
Amortized cost of fixed maturity securities | 1,555 | 1,830 |
Fair value of mortgage-backed securities | 1,753 | |
Fair value of fixed maturity securities | $1,753 | $2,040 |
Investments_in_equity_securiti2
Investments in equity securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Summary of Investment Holdings [Line Items] | ||||
Cost basis of investments | $58,370 | $59,451 | ||
Unrealized gains on investments | 60,137 | 58,197 | ||
Unrealized losses on investments | -1,037 | -143 | ||
Fair value of investments | 117,470 | [1] | 117,505 | [2] |
Banks, insurance and finance [Member] | ||||
Summary of Investment Holdings [Line Items] | ||||
Cost basis of investments | 22,495 | 22,420 | ||
Unrealized gains on investments | 33,170 | 28,021 | ||
Fair value of investments | 55,665 | [1] | 50,441 | [2] |
Consumer products [Member] | ||||
Summary of Investment Holdings [Line Items] | ||||
Cost basis of investments | 6,951 | 7,082 | ||
Unrealized gains on investments | 18,389 | 17,854 | ||
Unrealized losses on investments | -1 | |||
Fair value of investments | 25,339 | [1] | 24,936 | [2] |
Commercial, industrial and other [Member] | ||||
Summary of Investment Holdings [Line Items] | ||||
Cost basis of investments | 28,924 | 29,949 | ||
Unrealized gains on investments | 8,578 | 12,322 | ||
Unrealized losses on investments | -1,036 | -143 | ||
Fair value of investments | $36,466 | [1] | $42,128 | [2] |
[1] | Approximately 59% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company-$14.1 billion; Wells Fargo & Company-$26.5 billion; International Business Machines Corporation-$12.3 billion; and The Coca-Cola Company-$16.9 billion). | |||
[2] | Approximately 55% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company-$13.8 billion; Wells Fargo & Company-$21.9 billion; International Business Machines Corporation-$12.8 billion; and The Coca-Cola Company-$16.5 billion). |
Investments_in_equity_securiti3
Investments in equity securities (Parenthetical) (Detail) (USD $) | 0 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Item | Item | |||
Summary of Investment Holdings [Line Items] | ||||
Fair value of investments | 117,470 | [1] | 117,505 | [2] |
American Express Company [Member] | ||||
Summary of Investment Holdings [Line Items] | ||||
Fair value of investments | 14,100 | 13,800 | ||
Wells Fargo & Company [Member] | ||||
Summary of Investment Holdings [Line Items] | ||||
Fair value of investments | 26,500 | 21,900 | ||
International Business Machines Corporation [Member] | ||||
Summary of Investment Holdings [Line Items] | ||||
Fair value of investments | 12,300 | 12,800 | ||
The Coca-Cola Company [Member] | ||||
Summary of Investment Holdings [Line Items] | ||||
Fair value of investments | 16,900 | 16,500 | ||
Investment Concentration [Member] | Equity Securities [Member] | ||||
Summary of Investment Holdings [Line Items] | ||||
Concentration percentage | 59.00% | 55.00% | ||
Number of companies in concentration percentage | 4 | 4 | ||
[1] | Approximately 59% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company-$14.1 billion; Wells Fargo & Company-$26.5 billion; International Business Machines Corporation-$12.3 billion; and The Coca-Cola Company-$16.9 billion). | |||
[2] | Approximately 55% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company-$13.8 billion; Wells Fargo & Company-$21.9 billion; International Business Machines Corporation-$12.8 billion; and The Coca-Cola Company-$16.5 billion). |
Investments_in_equity_securiti4
Investments in equity securities - Narrative (Detail) (Equity Securities [Member], USD $) | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Securities [Member] | ||||
Summary of Investment Holdings [Line Items] | ||||
Other than temporary unrealized losses | $0 | $0 | ||
Unrealized losses related to securities that have been in an unrealized loss position for more than 12 months | $65,000,000 | $52,000,000 | $65,000,000 | $52,000,000 |
Investments_in_equity_securiti5
Investments in equity securities - Fair value by segment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Summary of Investment Holdings [Line Items] | ||||
Investments in equity securities | $117,470 | [1] | $117,505 | [2] |
Insurance and Other [Member] | ||||
Summary of Investment Holdings [Line Items] | ||||
Investments in equity securities | 115,529 | 115,464 | ||
Railroad, Utilities and Energy [Member] | Other Assets [Member] | ||||
Summary of Investment Holdings [Line Items] | ||||
Investments in equity securities | 881 | [3] | 1,103 | [3] |
Finance and Financial Products [Member] | ||||
Summary of Investment Holdings [Line Items] | ||||
Investments in equity securities | $1,060 | $938 | ||
[1] | Approximately 59% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company-$14.1 billion; Wells Fargo & Company-$26.5 billion; International Business Machines Corporation-$12.3 billion; and The Coca-Cola Company-$16.9 billion). | |||
[2] | Approximately 55% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company-$13.8 billion; Wells Fargo & Company-$21.9 billion; International Business Machines Corporation-$12.8 billion; and The Coca-Cola Company-$16.5 billion). | |||
[3] | Included in other assets. |
Other_investments_Detail
Other investments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Insurance and Other [Member] | ||
Other Investments [Line Items] | ||
Other investments, Fair Value | $16,346 | $12,334 |
Finance and Financial Products [Member] | ||
Other Investments [Line Items] | ||
Other investments, Fair Value | 5,978 | 5,617 |
Available-for-sale Securities [Member] | ||
Other Investments [Line Items] | ||
Other investments, Cost | 13,022 | 10,022 |
Other investments, Fair Value | 22,324 | 17,951 |
Available-for-sale Securities [Member] | Insurance and Other [Member] | ||
Other Investments [Line Items] | ||
Other investments, Cost | 9,970 | 6,970 |
Other investments, Fair Value | 16,346 | 12,334 |
Available-for-sale Securities [Member] | Finance and Financial Products [Member] | ||
Other Investments [Line Items] | ||
Other investments, Cost | 3,052 | 3,052 |
Other investments, Fair Value | $5,978 | $5,617 |
Other_investments_Narrative_De
Other investments - Narrative (Detail) (Available-for-sale Securities [Member], USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2009 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 12, 2014 |
The Dow Chemical Company [Member] | Series A Cumulative Convertible Perpetual Preferred Stock [Member] | |||||
Other Investments [Line Items] | |||||
Investment in preferred stock, stated dividend rate | 8.50% | ||||
Investment, number of shares purchased | 3,000,000 | ||||
Amount paid for an investment | $3 | ||||
Conversion ratio of preferred stock into common stock | 24.201 | 24.201 | |||
Preferred stock conversion price, per share | $41.32 | $41.32 | |||
Common stock threshold price, per share, to trigger the issuer's option to convert preferred stock into common stock | $53.72 | $53.72 | |||
Minimum number of trading days in a consecutive-day period that the issuer's common stock price must exceed to trigger the issuer's option to convert preferred stock to common stock | 20 days | ||||
Range of trading days in a consecutive day period, number of days | 30 days | ||||
Bank of America Corporation [Member] | Cumulative Perpetual Preferred Stock [Member] | |||||
Other Investments [Line Items] | |||||
Investment in preferred stock, stated dividend rate | 6.00% | ||||
Investment, number of shares purchased | 50,000 | ||||
Redemption value of Perpetual Preferred Stock, per share | $105,000 | $105,000 | |||
Redemption value of Perpetual Preferred Stock, aggregate value | 5.25 | 5.25 | |||
Bank of America Corporation [Member] | Warrants Expiring 2021 [Member] | |||||
Other Investments [Line Items] | |||||
Number of common shares that can be purchased | 700,000,000 | 700,000,000 | |||
Aggregate cost to exercise warrants | 5 | 5 | |||
Exercise price for warrants, per share | $7.14 | ||||
Bank of America Corporation [Member] | Cumulative Perpetual Preferred Stock and Warrants [Member] | |||||
Other Investments [Line Items] | |||||
Amount paid for an investment | 5 | ||||
Wm. Wrigley Jr. Company [Member] | |||||
Other Investments [Line Items] | |||||
Investment in preferred stock, liquidation value | 2.1 | 2.1 | |||
Investment in preferred stock, stated dividend rate | 5.00% | ||||
RBI - Parent Company of Burger King and Tim Hortons [Member] | Class A 9% Cumulative Compounding Perpetual Preferred Stock [Member] | |||||
Other Investments [Line Items] | |||||
Investment in preferred stock, stated dividend rate | 9.00% | ||||
Stated value of equity securities acquired | 3 | ||||
RBI - Parent Company of Burger King and Tim Hortons [Member] | Class A 9% Cumulative Compounding Perpetual Preferred Stock and Common Stock [Member] | |||||
Other Investments [Line Items] | |||||
Amount paid for an investment | $3 | ||||
Percentage of voting interests | 14.40% |
Investments_in_HJ_Heinz_Holdin2
Investments in H.J. Heinz Holding Corporation - Narrative (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2014 | Jun. 07, 2013 | |
Berkshire Hathaway (Parent) [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchase of preferred stock, common stock and warrants | $12,250,000,000 | ||
Heinz Holding [Member] | Stock Options [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Common shares reserved for issuance under options | 39,600,000 | ||
Heinz Holding [Member] | 3G Capital (venture partner) [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment ownership percentage | 50.00% | ||
Heinz Holding [Member] | 3G Capital (venture partner) [Member] | Heinz [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Minimum percentage of initial common stock investment required to be held to maintain approval rights over significant transactions and governance | 66.00% | ||
Heinz Holding [Member] | Common Stock [Member] | Heinz [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Aggregate cash paid for acquiree's equity securities | 23,250,000,000 | ||
Heinz Holding [Member] | Common Stock [Member] | 3G Capital (venture partner) [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Aggregate cash paid for acquiree's equity securities | 4,250,000,000 | ||
Investment, number of shares purchased | 425,000,000 | ||
Heinz Holding [Member] | Berkshire Hathaway (Parent) [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment ownership percentage | 50.00% | ||
Heinz Holding [Member] | Berkshire Hathaway (Parent) [Member] | Heinz [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Minimum percentage of initial common stock investment required to be held to maintain approval rights over significant transactions and governance | 66.00% | ||
Heinz Holding [Member] | Berkshire Hathaway (Parent) [Member] | Common Stock [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment, number of shares purchased | 425,000,000 | ||
Heinz Holding [Member] | Berkshire Hathaway (Parent) [Member] | Warrants Expiring June 7, 2018 [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of common shares that can be purchased | 46,000,000 | ||
Exercise price for warrants, per share | 0.01 | ||
Heinz Holding [Member] | Berkshire Hathaway (Parent) [Member] | Cumulative Compounding Preferred Stock [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in preferred stock, liquidation value | 8,000,000,000 | ||
Investment in preferred stock, stated dividend rate | 9.00% | ||
Heinz Holding [Member] | Berkshire Hathaway (Parent) [Member] | Common Stock, Cumulative Compounding Preferred Stock and Warrants [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchase of preferred stock, common stock and warrants | $12,250,000,000 |
Investments_in_HJ_Heinz_Holdin3
Investments in H.J. Heinz Holding Corporation (Detail) (Heinz Holding [Member], USD $) | 7 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 28, 2014 | ||
Heinz Holding [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Assets | $38,972 | $36,763 | ||
Liabilities | 22,429 | 21,077 | ||
Sales | 6,240 | 10,922 | ||
Net earnings (loss) | -77 | 657 | ||
Preferred stock dividends earned by Berkshire | -408 | -720 | ||
Net earnings (loss) attributable to common stockholders | -485 | -63 | ||
Earnings attributable to Berkshire Hathaway Shareholders | $153 | [1] | $687 | [1] |
[1] | Includes dividends earned and Berkshire's share of net earnings (loss) attributable to common stockholders. |
Investment_gainslosses_Detail
Investment gains/losses (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Gain (Loss) on Investments [Line Items] | |||
OTTI losses | ($697) | ($228) | ($337) |
Investment gains/losses | 3,575 | 4,065 | 1,462 |
Fixed Maturities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Gross gains from sales, redemptions and other disposals | 360 | 1,783 | 188 |
Gross gains from sales, redemptions and other disposals | -89 | -139 | -354 |
Equity Securities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Gross gains from sales, redemptions and other disposals | 4,016 | 1,253 | 1,468 |
Gross gains from sales, redemptions and other disposals | -125 | -62 | -12 |
Other Types of Investments [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Other investment gains/losses | $110 | $1,458 | $509 |
Investment_gainslosses_Narrati
Investment gains/losses - Narrative (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 01, 2013 | Dec. 31, 2008 | |
Gain (Loss) on Investments [Line Items] | |||||
Investment gains/losses | $3,575,000,000 | $4,065,000,000 | $1,462,000,000 | ||
OTTI losses | 697,000,000 | 228,000,000 | 337,000,000 | ||
Equity Securities [Member] | PSX and GHC [Member] | PSPI and WPLG Inc. [Member] | |||||
Gain (Loss) on Investments [Line Items] | |||||
Investment gains/losses | 2,100,000,000 | ||||
Equity Securities [Member] | Tesco PLC [Member] | |||||
Gain (Loss) on Investments [Line Items] | |||||
OTTI losses | 678,000,000 | ||||
Equity Securities [Member] | Goldman Sachs and General Electric [Member] | Common Stock Warrants [Member] | |||||
Gain (Loss) on Investments [Line Items] | |||||
Investment gains/losses | 1,400,000,000 | ||||
Bonds [Member] | Texas Competitive Electric Holdings [Member] | |||||
Gain (Loss) on Investments [Line Items] | |||||
OTTI losses | 228,000,000 | 337,000,000 | |||
Fixed Maturities [Member] | Wm. Wrigley Jr. Company [Member] | Subordinated Debt Due 2018 [Member] | |||||
Gain (Loss) on Investments [Line Items] | |||||
Investment gains/losses | 680,000,000 | ||||
Acquisition of debt investments, par value when acquired | 4,400,000,000 | ||||
Investment in debt securities, stated interest rate | 11.45% | ||||
Specified price for repurchase of notes, percentage of par value | 115.45% | ||||
Proceeds from repurchase of notes | $5,080,000,000 |
Receivables_Detail
Receivables (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Insurance and Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Insurance premiums receivable | $7,914 | $7,474 |
Reinsurance recoverable on unpaid losses | 3,116 | 3,055 |
Trade and other receivables | 11,133 | 10,111 |
Allowances for uncollectible accounts | -311 | -360 |
Total receivables of insurance and other businesses | 21,852 | 20,280 |
Finance and Financial Products [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and finance receivables before allowances and discounts | 13,150 | 13,576 |
Allowances for uncollectible loans | -303 | -344 |
Unamortized acquisition discounts | -281 | -406 |
Total loans and finance receivables of finance and financial products businesses | $12,566 | $12,826 |
Receivables_Narrative_Detail
Receivables - Narrative (Detail) (Loans and finance receivables [Member], Finance and Financial Products [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loans and finance receivables [Member] | Finance and Financial Products [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Provisions for loan losses | $173 | $249 |
Loan charge-offs, net of recoveries | $214 | $266 |
Percent of loan balances evaluated collectively for impairment | 97.00% | |
Percent of loan balances that are performing | 98.00% | |
Percent of loan balances that are current as to payment status | 94.00% |
Inventories_Detail
Inventories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ||
Raw materials | $1,881 | $1,755 |
Work in process and other | 850 | 842 |
Finished manufactured goods | 3,333 | 3,206 |
Goods acquired for resale | 4,172 | 4,057 |
Total inventory | $10,236 | $9,860 |
Property_plant_and_equipment_D
Property, plant and equipment (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Insurance and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 27,320 | $26,074 |
Property, plant and equipment, accumulated depreciation | -13,167 | -12,451 |
Total property, plant and equipment, net | 14,153 | 13,623 |
Insurance and Other [Member] | Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,600 | 6,244 |
Insurance and Other [Member] | Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 16,413 | 15,984 |
Insurance and Other [Member] | Furniture, fixtures and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,136 | 2,748 |
Insurance and Other [Member] | Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,171 | 1,098 |
Railroad [Member] | Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,983 | 5,973 |
Railroad [Member] | Track structure and other roadway [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 42,588 | 40,098 |
Railroad [Member] | Locomotives, freight cars and other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 9,493 | 7,551 |
Railroad [Member] | Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,292 | 973 |
Utilities and Energy [Member] | Utility generation, distribution and transmission system [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 64,645 | 57,490 |
Utilities and Energy [Member] | Interstate pipeline assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,660 | 6,448 |
Utilities and Energy [Member] | Independent power plants and other assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,035 | 2,516 |
Utilities and Energy [Member] | Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,194 | 4,217 |
Railroad, Utilities and Energy [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 140,890 | 125,266 |
Property, plant and equipment, accumulated depreciation | -25,836 | -22,784 |
Total property, plant and equipment, net | 115,054 | 102,482 |
Finance and Financial Products [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment and assets held for lease, gross | 11,216 | 10,888 |
Property, plant and equipment and assets held for lease, accumulated depreciation | -3,179 | -3,188 |
Total property, plant and equipment and assets held for lease, net | 8,037 | 7,700 |
Finance and Financial Products [Member] | Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment and assets held for lease, gross | 227 | 233 |
Finance and Financial Products [Member] | Assets held for lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment and assets held for lease, gross | 9,810 | 9,509 |
Finance and Financial Products [Member] | Buildings, machinery and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment and assets held for lease, gross | 1,179 | $1,146 |
Minimum [Member] | Insurance and Other [Member] | Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 2 years | |
Minimum [Member] | Insurance and Other [Member] | Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 3 years | |
Minimum [Member] | Insurance and Other [Member] | Furniture, fixtures and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 2 years | |
Minimum [Member] | Railroad [Member] | Track structure and other roadway [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 5 years | |
Minimum [Member] | Railroad [Member] | Locomotives, freight cars and other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 5 years | |
Minimum [Member] | Utilities and Energy [Member] | Utility generation, distribution and transmission system [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 5 years | |
Minimum [Member] | Utilities and Energy [Member] | Interstate pipeline assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 3 years | |
Minimum [Member] | Utilities and Energy [Member] | Independent power plants and other assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 3 years | |
Minimum [Member] | Finance and Financial Products [Member] | Assets held for lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 5 years | |
Minimum [Member] | Finance and Financial Products [Member] | Buildings, machinery and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 3 years | |
Maximum [Member] | Insurance and Other [Member] | Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 40 years | |
Maximum [Member] | Insurance and Other [Member] | Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 25 years | |
Maximum [Member] | Insurance and Other [Member] | Furniture, fixtures and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 18 years | |
Maximum [Member] | Railroad [Member] | Track structure and other roadway [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 100 years | |
Maximum [Member] | Railroad [Member] | Locomotives, freight cars and other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 40 years | |
Maximum [Member] | Utilities and Energy [Member] | Utility generation, distribution and transmission system [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 80 years | |
Maximum [Member] | Utilities and Energy [Member] | Interstate pipeline assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 80 years | |
Maximum [Member] | Utilities and Energy [Member] | Independent power plants and other assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 30 years | |
Maximum [Member] | Finance and Financial Products [Member] | Assets held for lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 30 years | |
Maximum [Member] | Finance and Financial Products [Member] | Buildings, machinery and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (in years) | 50 years |
Property_plant_and_equipment_N
Property, plant and equipment - Narrative (Detail) (Finance and Financial Products [Member], Assets held for lease [Member], USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Finance and Financial Products [Member] | Assets held for lease [Member] | |
Property, Plant and Equipment [Line Items] | |
Future minimum lease rentals to be received, 2015 | $982 |
Future minimum lease rentals to be received, 2016 | 822 |
Future minimum lease rentals to be received, 2017 | 643 |
Future minimum lease rentals to be received, 2018 | 461 |
Future minimum lease rentals to be received, 2019 | 311 |
Future minimum lease rentals to be received, thereafter | $385 |
Goodwill_and_other_intangible_2
Goodwill and other intangible assets (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Balance at beginning of year | $57,011 | $54,523 |
Acquisitions of businesses | 4,006 | 2,732 |
Other, including foreign currency translation | -303 | -244 |
Balance at end of year | $60,714 | $57,011 |
Goodwill_and_other_intangible_3
Goodwill and other intangible assets - Intangible assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $15,968 | $14,137 |
Accumulated amortization | 6,027 | 4,954 |
Trademarks and trade names [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 3,117 | 2,750 |
Accumulated amortization | 599 | 340 |
Patents and technology [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 5,425 | 5,173 |
Accumulated amortization | 3,133 | 2,626 |
Customer relationships [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 5,603 | 4,690 |
Accumulated amortization | 1,768 | 1,518 |
Other intangible assets [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,823 | 1,524 |
Accumulated amortization | 527 | 470 |
Insurance and Other [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 13,714 | 11,923 |
Accumulated amortization | 4,476 | 3,723 |
Railroad, Utilities and Energy [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 2,254 | 2,214 |
Accumulated amortization | $1,551 | $1,231 |
Goodwill_and_other_intangible_4
Goodwill and other intangible assets - Intangible assets - Narrative (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $1,155 | $1,090 | $1,008 |
Estimated amortization expense - 2015 | 927 | ||
Estimated amortization expense - 2016 | 870 | ||
Estimated amortization expense - 2017 | 856 | ||
Estimated amortization expense - 2018 | 759 | ||
Estimated amortization expense - 2019 | 684 | ||
Intangible assets with indefinite lives, excluding goodwill | $2,586 | $2,221 |
Derivative_contracts_Detail
Derivative contracts (Detail) (Finance and Financial Products [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivative [Line Items] | ||||
Liabilities | $4,810 | $5,331 | ||
Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Liabilities | 4,810 | 5,331 | ||
Not Designated as Hedging Instrument [Member] | Equity Index Put Options [Member] | ||||
Derivative [Line Items] | ||||
Liabilities | 4,560 | 4,667 | ||
Notional Value | 29,469 | [1] | 32,095 | [1] |
Not Designated as Hedging Instrument [Member] | Credit Default Contracts [Member] | ||||
Derivative [Line Items] | ||||
Liabilities | 250 | 648 | ||
Notional Value | 7,792 | [2] | 7,792 | [2] |
Not Designated as Hedging Instrument [Member] | Other, principally interest rate and foreign currency [Member] | ||||
Derivative [Line Items] | ||||
Liabilities | $16 | |||
[1] | Represents the aggregate undiscounted amount payable at the contract expiration dates assuming that the value of each index is zero at each contract's expiration date. | |||
[2] | Represents the maximum undiscounted future value of losses payable under the contracts, if all underlying issuers default and the residual value of the specified obligations is zero. |
Derivative_contracts_gains_and
Derivative contracts - gains and losses (Detail) (Finance and Financial Products [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains/losses | $506 | $2,608 | $1,963 |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains/losses | 506 | 2,608 | 1,963 |
Not Designated as Hedging Instrument [Member] | Equity Index Put Options [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains/losses | 108 | 2,843 | 997 |
Not Designated as Hedging Instrument [Member] | Credit Default Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains/losses | 397 | -213 | 894 |
Not Designated as Hedging Instrument [Member] | Other, principally interest rate and foreign currency [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gains/losses | $1 | ($22) | $72 |
Derivative_contracts_Narrative
Derivative contracts - Narrative (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Railroad, Utilities and Energy [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Assets | $108,000,000 | $87,000,000 |
Railroad, Utilities and Energy [Member] | Not Designated as Hedging Instrument [Member] | Accounts Payable, Accruals and Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Liabilities | 230,000,000 | 208,000,000 |
Finance and Financial Products [Member] | ||
Derivative [Line Items] | ||
Liabilities | 4,810,000,000 | 5,331,000,000 |
Finance and Financial Products [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Collateral posting requirements under contracts with collateral provisions | 0 | 0 |
Additional collateral posting requirements | 1,100,000,000 | |
Liabilities | 4,810,000,000 | 5,331,000,000 |
Finance and Financial Products [Member] | Not Designated as Hedging Instrument [Member] | Equity Index Put Options [Member] | ||
Derivative [Line Items] | ||
Maturity date, range, start | Jun-18 | |
Maturity date, range, end | Jan-26 | |
Aggregate intrinsic value of equity index put option contracts | 1,400,000,000 | 1,700,000,000 |
Weighted average remaining life of derivative contract | 6 years | |
Liabilities | $4,560,000,000 | $4,667,000,000 |
Finance and Financial Products [Member] | Not Designated as Hedging Instrument [Member] | Credit Default Contracts - Municipalities [Member] | ||
Derivative [Line Items] | ||
Maturity date, range, start | 2019 | |
Maturity date, range, end | 2054 | |
Weighted average remaining life of derivative contract | 16 years 9 months |
Supplemental_cash_flow_informa2
Supplemental cash flow information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Cash Flow Information [Line Items] | |||
Cash paid during the period for income taxes | $4,014 | $5,401 | $4,695 |
Liabilities assumed in connection with business acquisitions | 6,334 | 9,224 | 1,751 |
Equity securities exchanged in connection with business acquisitions | 2,478 | ||
Borrowings assumed in connection with certain property, plant and equipment additions | 406 | ||
Treasury stock acquired in connection with business acquisition | 400 | ||
Insurance and Other [Member] | |||
Supplemental Cash Flow Information [Line Items] | |||
Cash paid during the period for interest | 360 | 343 | 319 |
Railroad, Utilities and Energy [Member] | |||
Supplemental Cash Flow Information [Line Items] | |||
Cash paid during the period for interest | 2,487 | 1,958 | 1,829 |
Finance and Financial Products [Member] | |||
Supplemental Cash Flow Information [Line Items] | |||
Cash paid during the period for interest | $465 | $573 | $653 |
Unpaid_losses_and_loss_adjustm2
Unpaid losses and loss adjustment expenses (Detail) (Property, Liability and Casualty Unpaid Losses and Loss Adjustment Expense Reserves [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Liability and Casualty Unpaid Losses and Loss Adjustment Expense Reserves [Member] | |||
Unpaid Losses and Loss Adjustment Expenses [Line Items] | |||
Gross liabilities at beginning of year | $64,866 | $64,160 | $63,819 |
Ceded losses and deferred charges at beginning of year | -7,414 | -6,944 | -7,092 |
Net balance at beginning of year | 57,452 | 57,216 | 56,727 |
Incurred losses recorded during the year for the current accident year | 27,771 | 23,027 | 22,239 |
Incurred losses recorded during the year for prior accident years | -1,365 | -1,752 | -2,126 |
Total incurred losses | 26,406 | 21,275 | 20,113 |
Payments during the year with respect to the current accident year | -11,289 | -10,154 | -9,667 |
Payments during the year with respect to prior accident years | -11,381 | -10,978 | -10,628 |
Total payments | -22,670 | -21,132 | -20,295 |
Foreign currency translation adjustment | -666 | 93 | 186 |
Business acquisitions | 67 | 485 | |
Net balance at end of year | 60,589 | 57,452 | 57,216 |
Ceded losses and deferred charges at end of year | 10,888 | 7,414 | 6,944 |
Gross liabilities at end of year | $71,477 | $64,866 | $64,160 |
Unpaid_losses_and_loss_adjustm3
Unpaid losses and loss adjustment expenses - Narrative (Detail) (Property, Liability and Casualty Unpaid Losses and Loss Adjustment Expense Reserves [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Liability and Casualty Unpaid Losses and Loss Adjustment Expense Reserves [Member] | |||
Unpaid Losses and Loss Adjustment Expenses [Line Items] | |||
Incurred losses for (reductions of) prior accident years for discount and deferred charge changes | $128,000,000 | $186,000,000 | $381,000,000 |
Net discounted workers' compensation liabilities | 2,035,000,000 | 2,066,000,000 | |
Net discount on workers' compensation liabilities | 1,745,000,000 | 1,866,000,000 | |
Unamortized balances of deferred charges reinsurance assumed | 7,772,000,000 | 4,359,000,000 | |
Unamortized balances of deferred charges reinsurance assumed from contracts written in 2014 | 3,428,000,000 | ||
Incurred losses for (reductions of) prior accident years excluding discount and deferred charge changes | -1,493,000,000 | -1,938,000,000 | -2,507,000,000 |
Increase (decrease) in liabilities under retroactive reinsurance contracts | 825,000,000 | 300,000,000 | |
Liabilities for environmental, asbestos and latent injury claims, net of reinsurance | 14,400,000,000 | 13,700,000,000 | |
Liabilities for environmental, asbestos and latent injury claims, related to retroactive reinsurance contracts | $12,700,000,000 | $11,900,000,000 |
Notes_payable_and_other_borrow2
Notes payable and other borrowings (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Notes payable and other borrowings [Line Items] | ||
Principal payments on debt - 2015 | 7,444 | |
Principal payments on debt - 2016 | 3,940 | |
Principal payments on debt - 2017 | 6,029 | |
Principal payments on debt - 2018 | 7,694 | |
Principal payments on debt - 2019 | 3,796 | |
Berkshire Hathaway (Parent) [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Notes payable and other borrowings | 8,354 | 8,311 |
Principal payments on debt - 2015 | 1,710 | |
Principal payments on debt - 2016 | 1,051 | |
Principal payments on debt - 2017 | 1,144 | |
Principal payments on debt - 2018 | 808 | |
Principal payments on debt - 2019 | 755 | |
Insurance and Other [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Notes payable and other borrowings | 11,894 | 12,440 |
Principal payments on debt - 2015 | 2,676 | |
Principal payments on debt - 2016 | 1,094 | |
Principal payments on debt - 2017 | 1,428 | |
Principal payments on debt - 2018 | 1,088 | |
Principal payments on debt - 2019 | 804 | |
Insurance and Other [Member] | Berkshire Hathaway (Parent) [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Notes payable and other borrowings | 8,354 | 8,311 |
Weighted average interest rate, percentage | 2.80% | |
Insurance and Other [Member] | Berkshire Hathaway (Parent) [Member] | Debt [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Maturity date, range, start | 2015 | |
Maturity date, range, end | 2047 | |
Insurance and Other [Member] | Insurance and Other Subsidiaries [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Short-term borrowings | 839 | 949 |
Other borrowings | 2,701 | 3,180 |
Short-term debt, weighted average interest rate | 0.60% | |
Weighted average interest rate, percentage | 6.10% | |
Insurance and Other [Member] | Insurance and Other Subsidiaries [Member] | Debt [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Maturity date, range, start | 2015 | |
Maturity date, range, end | 2035 | |
Railroad, Utilities and Energy [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Notes payable and other borrowings | 55,579 | 46,655 |
Principal payments on debt - 2015 | 3,043 | |
Principal payments on debt - 2016 | 1,642 | |
Principal payments on debt - 2017 | 1,677 | |
Principal payments on debt - 2018 | 4,241 | |
Principal payments on debt - 2019 | 2,885 | |
Railroad, Utilities and Energy [Member] | Berkshire Hathaway Energy [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Weighted average interest rate, percentage | 5.10% | |
Senior unsecured debt | 7,860 | 6,616 |
Railroad, Utilities and Energy [Member] | Berkshire Hathaway Energy [Member] | Debt [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Maturity date, range, start | 2017 | |
Maturity date, range, end | 2045 | |
Railroad, Utilities and Energy [Member] | Berkshire Hathaway Energy Subsidiaries [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Notes payable and other borrowings | 28,439 | 23,033 |
Weighted average interest rate, percentage | 5.10% | |
Railroad, Utilities and Energy [Member] | Berkshire Hathaway Energy Subsidiaries [Member] | Debt [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Maturity date, range, start | 2015 | |
Maturity date, range, end | 2064 | |
Railroad, Utilities and Energy [Member] | BNSF [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Notes payable and other borrowings | 19,280 | 17,006 |
Weighted average interest rate, percentage | 5.00% | |
Railroad, Utilities and Energy [Member] | BNSF [Member] | Debt [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Maturity date, range, start | 2015 | |
Maturity date, range, end | 2097 | |
Finance and Financial Products [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Notes payable and other borrowings | 12,736 | 13,129 |
Principal payments on debt - 2015 | 1,725 | |
Principal payments on debt - 2016 | 1,204 | |
Principal payments on debt - 2017 | 2,924 | |
Principal payments on debt - 2018 | 2,365 | |
Principal payments on debt - 2019 | 107 | |
Finance and Financial Products [Member] | Berkshire Hathaway Finance Corporation [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Notes payable and other borrowings | 11,178 | 11,178 |
Weighted average interest rate, percentage | 3.10% | |
Finance and Financial Products [Member] | Berkshire Hathaway Finance Corporation [Member] | Debt [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Maturity date, range, start | 2015 | |
Maturity date, range, end | 2043 | |
Finance and Financial Products [Member] | Other Finance Subsidiaries [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Notes payable and other borrowings | 1,558 | $1,951 |
Weighted average interest rate, percentage | 5.30% | |
Finance and Financial Products [Member] | Other Finance Subsidiaries [Member] | Debt [Member] | ||
Notes payable and other borrowings [Line Items] | ||
Maturity date, range, start | 2015 | |
Maturity date, range, end | 2036 |
Notes_payable_and_other_borrow3
Notes payable and other borrowings - Narrative (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Railroad, Utilities and Energy [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable and other borrowings | $55,579,000,000 | $55,579,000,000 | $46,655,000,000 |
Finance and Financial Products [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable and other borrowings | 12,736,000,000 | 12,736,000,000 | 13,129,000,000 |
Berkshire Hathaway Subsidiaries [Member] | Line of Credit and Commercial Paper Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Unused lines of credit available | 7,800,000,000 | 7,800,000,000 | |
Berkshire Hathaway Energy Company and Subsidiaries [Member] | Line of Credit and Commercial Paper Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Unused lines of credit available | 4,600,000,000 | 4,600,000,000 | |
Berkshire Hathaway (Parent) [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable and other borrowings | 8,354,000,000 | 8,354,000,000 | 8,311,000,000 |
Berkshire Hathaway (Parent) [Member] | Subsidiaries Excluding Berkshire Hathaway Finance Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Guarantee obligation | 3,400,000,000 | 3,400,000,000 | |
Berkshire Hathaway Energy [Member] | Senior Unsecured Notes [Member] | Railroad, Utilities and Energy [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | 1,500,000,000 | ||
Berkshire Hathaway Energy [Member] | Senior Unsecured Notes Due 2020 at 2.4% [Member] | Railroad, Utilities and Energy [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | 350,000,000 | ||
Debt instrument, interest rate, stated percentage | 2.40% | 2.40% | |
Berkshire Hathaway Energy [Member] | Senior Unsecured Notes Due 2025 at 3.5% [Member] | Railroad, Utilities and Energy [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | 400,000,000 | ||
Debt instrument, interest rate, stated percentage | 3.50% | 3.50% | |
Berkshire Hathaway Energy [Member] | Senior Unsecured Notes Due 2045 at 4.5% [Member] | Railroad, Utilities and Energy [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | 750,000,000 | ||
Debt instrument, interest rate, stated percentage | 4.50% | 4.50% | |
Berkshire Hathaway Energy Subsidiaries [Member] | Railroad, Utilities and Energy [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable and other borrowings | 28,439,000,000 | 28,439,000,000 | 23,033,000,000 |
Berkshire Hathaway Energy Subsidiaries [Member] | Railroad, Utilities and Energy [Member] | AltaLink [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable and other borrowings | 4,000,000,000 | 4,000,000,000 | |
BNSF [Member] | Railroad, Utilities and Energy [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable and other borrowings | 19,280,000,000 | 19,280,000,000 | 17,006,000,000 |
BNSF [Member] | Debentures [Member] | Railroad, Utilities and Energy [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | 3,000,000,000 | ||
BNSF [Member] | Debentures Due 2024 at 3.75% [Member] | Railroad, Utilities and Energy [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | 500,000,000 | ||
Debt instrument, interest rate, stated percentage | 3.75% | 3.75% | |
BNSF [Member] | Debentures Due 2024 at 3.4% [Member] | Railroad, Utilities and Energy [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | 700,000,000 | ||
Debt instrument, interest rate, stated percentage | 3.40% | 3.40% | |
BNSF [Member] | Debentures Due 2044 at 4.9% [Member] | Railroad, Utilities and Energy [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | 1,000,000,000 | ||
Debt instrument, interest rate, stated percentage | 4.90% | 4.90% | |
BNSF [Member] | Debentures Due 2044 at 4.5% [Member] | Railroad, Utilities and Energy [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | 800,000,000 | ||
Debt instrument, interest rate, stated percentage | 4.55% | 4.55% | |
Berkshire Hathaway Finance Corporation [Member] | Finance and Financial Products [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable and other borrowings | 11,178,000,000 | 11,178,000,000 | 11,178,000,000 |
Berkshire Hathaway Finance Corporation [Member] | Senior Notes [Member] | Finance and Financial Products [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | 1,150,000,000 | ||
Berkshire Hathaway Finance Corporation [Member] | Senior Notes Due 2017, Floating Rate [Member] | Finance and Financial Products [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | 1,050,000,000 | ||
Berkshire Hathaway Finance Corporation [Member] | Senior Notes Due 2018 at 2% [Member] | Finance and Financial Products [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | $100,000,000 | ||
Debt instrument, interest rate, stated percentage | 2.00% | 2.00% |
Income_taxes_Liabilities_Detai
Income taxes - Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Taxes [Line Items] | ||
Currently payable (receivable) | ($1,346) | ($395) |
Deferred | 61,936 | 57,442 |
Other income tax liabilities | 645 | 692 |
Income taxes, principally deferred | $61,235 | $57,739 |
Income_taxes_Deferred_taxes_De
Income taxes - Deferred taxes (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax liabilities: | ||
Investments - unrealized appreciation and cost basis differences | $26,633 | $25,660 |
Deferred charges reinsurance assumed | 2,721 | 1,526 |
Property, plant and equipment | 34,618 | 32,409 |
Other deferred tax liabilities | 6,396 | 6,278 |
Deferred tax liabilities | 70,368 | 65,873 |
Deferred tax assets: | ||
Unpaid losses and loss adjustment expenses | -933 | -817 |
Unearned premiums | -773 | -682 |
Accrued liabilities | -3,575 | -3,398 |
Derivative contract liabilities | -206 | -374 |
Other deferred tax assets | -2,945 | -3,160 |
Deferred tax assets | -8,432 | -8,431 |
Net deferred tax liability | $61,936 | $57,442 |
Income_taxes_Narrative_Detail
Income taxes - Narrative (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Line Items] | ||
Undistributed earnings of foreign subsidiaries for which no deferred income taxes have been established | $10,000,000,000 | |
Unrecognized tax benefits | 645,000,000 | 692,000,000 |
Unrecognized tax benefits that would impact effective tax rate | $505,000,000 |
Income_taxes_Income_tax_expens
Income taxes - Income tax expense components (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income tax expense: | |||
Federal | $6,447 | $8,155 | $5,695 |
State | 560 | 258 | 384 |
Foreign | 928 | 538 | 845 |
Total income taxes | 7,935 | 8,951 | 6,924 |
Income tax expense: | |||
Current | 3,302 | 5,168 | 4,711 |
Deferred | 4,633 | 3,783 | 2,213 |
Total income taxes | $7,935 | $8,951 | $6,924 |
Income_taxes_Income_tax_expens1
Income taxes - Income tax expense reconciliation (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income tax expense reconciliation | |||
Earnings before income taxes | $28,105 | $28,796 | $22,236 |
Hypothetical amounts applicable to above computed at the U.S. federal statutory rate | 9,837 | 10,079 | 7,783 |
Dividends received deduction and tax exempt interest | -820 | -514 | -518 |
State income taxes, less U.S. federal income tax benefit | 364 | 168 | 250 |
Foreign tax rate differences | -252 | -256 | -280 |
U.S. income tax credits | -333 | -457 | -319 |
Non-taxable exchange of investments | -679 | ||
Other differences, net | -182 | -69 | 8 |
Total income taxes | $7,935 | $8,951 | $6,924 |
Dividend_restrictions_Insuranc1
Dividend restrictions - Insurance subsidiaries (Detail) (USD $) | 12 Months Ended | |
In Billions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Principal Insurance Subsidiaries [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Amount available for payment of dividends without prior regulatory approval during 2015 | $17 | |
United States Based Property and Casualty Insurance Subsidiaries [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Statutory shareholders' equity | $129 | $129 |
Number of years for amortizing goodwill under statutory rules | 10 years |
Fair_value_measurements_Financ
Fair value measurements - Financial assets and liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in equity securities | $117,470 | [1] | $117,505 | [2] |
Railroad, Utilities and Energy [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable and other borrowings - carrying value | 55,579 | 46,655 | ||
Finance and Financial Products [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in equity securities | 1,060 | 938 | ||
Other investments | 5,978 | 5,617 | ||
Loans and finance receivables - carrying value | 12,566 | 12,826 | ||
Derivative contract liabilities | 4,810 | 5,331 | ||
Notes payable and other borrowings - carrying value | 12,736 | 13,129 | ||
Insurance and Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 27,397 | 28,785 | ||
Investments in equity securities | 115,529 | 115,464 | ||
Other investments | 16,346 | 12,334 | ||
Notes payable and other borrowings - carrying value | 11,894 | 12,440 | ||
Other Assets [Member] | Railroad, Utilities and Energy [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in equity securities | 881 | [3] | 1,103 | [3] |
Fair Value, Measurements, Recurring [Member] | Quoted Prices (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in equity securities | 117,424 | 117,438 | ||
Other investments | 329 | |||
Fair Value, Measurements, Recurring [Member] | Quoted Prices (Level 1) [Member] | Other Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract assets | 1 | [4] | 3 | [4] |
Fair Value, Measurements, Recurring [Member] | Quoted Prices (Level 1) [Member] | Accounts Payable, Accruals and Other Liabilities [Member] | Railroad, Utilities and Energy [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract liabilities | 18 | [4] | 1 | [4] |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in equity securities | 45 | 60 | ||
Loans and finance receivables - fair value | 33 | 454 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Railroad, Utilities and Energy [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable and other borrowings - fair value | 62,802 | 49,879 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Finance and Financial Products [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable and other borrowings - fair value | 12,846 | 12,846 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Insurance and Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable and other borrowings - fair value | 12,484 | 12,655 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract assets | 13 | [4] | 15 | [4] |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Accounts Payable, Accruals and Other Liabilities [Member] | Railroad, Utilities and Energy [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract liabilities | 169 | [4] | 198 | [4] |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in equity securities | 1 | 7 | ||
Other investments | 21,995 | 17,951 | ||
Loans and finance receivables - fair value | 12,858 | 11,548 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Finance and Financial Products [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable and other borrowings - fair value | 571 | 659 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Finance and Financial Products [Member] | Equity Index Put Options [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract liabilities | 4,560 | 4,667 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Finance and Financial Products [Member] | Credit Default Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract liabilities | 250 | 648 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract assets | 94 | [4] | 69 | [4] |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Accounts Payable, Accruals and Other Liabilities [Member] | Railroad, Utilities and Energy [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract liabilities | 43 | [4] | 9 | [4] |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Heinz Holding [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment in Heinz Holding Preferred Stock - fair value | 8,416 | 7,971 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Treasury, U.S. government corporations and agencies [Member] | Quoted Prices (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 2,264 | 2,184 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Treasury, U.S. government corporations and agencies [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 666 | 473 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Treasury, U.S. government corporations and agencies [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 1 | |||
Fair Value, Measurements, Recurring [Member] | States, municipalities and political subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 1,912 | 2,345 | ||
Fair Value, Measurements, Recurring [Member] | Foreign governments [Member] | Quoted Prices (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 7,981 | 7,467 | ||
Fair Value, Measurements, Recurring [Member] | Foreign governments [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 4,289 | 3,606 | ||
Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 8,763 | 10,187 | ||
Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 8 | 1,067 | ||
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 1,753 | 2,040 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in equity securities | 117,470 | 117,505 | ||
Other investments | 22,324 | 17,951 | ||
Loans and finance receivables - carrying value | 12,566 | 12,826 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Railroad, Utilities and Energy [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable and other borrowings - carrying value | 55,579 | 46,655 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Finance and Financial Products [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable and other borrowings - carrying value | 12,736 | 13,129 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Finance and Financial Products [Member] | Equity Index Put Options [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract liabilities | 4,560 | 4,667 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Finance and Financial Products [Member] | Credit Default Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract liabilities | 250 | 648 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Insurance and Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable and other borrowings - carrying value | 11,894 | 12,440 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Other Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract assets | 108 | [4] | 87 | [4] |
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Accounts Payable, Accruals and Other Liabilities [Member] | Railroad, Utilities and Energy [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract liabilities | 230 | [4] | 208 | [4] |
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Heinz Holding [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment in Heinz Holding Preferred Stock - carrying value | 7,710 | 7,710 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | U.S. Treasury, U.S. government corporations and agencies [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 2,930 | 2,658 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | States, municipalities and political subdivisions [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 1,912 | 2,345 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Foreign governments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 12,270 | 11,073 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Corporate bonds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 8,771 | 11,237 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Mortgage-backed securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 1,753 | 2,040 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in equity securities | 117,470 | 117,505 | ||
Other investments | 22,324 | 17,951 | ||
Loans and finance receivables - fair value | 12,891 | 12,002 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Railroad, Utilities and Energy [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable and other borrowings - fair value | 62,802 | 49,879 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Finance and Financial Products [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable and other borrowings - fair value | 13,417 | 13,505 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Finance and Financial Products [Member] | Equity Index Put Options [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract liabilities | 4,560 | 4,667 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Finance and Financial Products [Member] | Credit Default Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract liabilities | 250 | 648 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Insurance and Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable and other borrowings - fair value | 12,484 | 12,655 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Other Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract assets | 108 | [4] | 87 | [4] |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Accounts Payable, Accruals and Other Liabilities [Member] | Railroad, Utilities and Energy [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative contract liabilities | 230 | [4] | 208 | [4] |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Heinz Holding [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment in Heinz Holding Preferred Stock - fair value | 8,416 | 7,971 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | U.S. Treasury, U.S. government corporations and agencies [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 2,930 | 2,658 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | States, municipalities and political subdivisions [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 1,912 | 2,345 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Foreign governments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 12,270 | 11,073 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Corporate bonds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | 8,771 | 11,254 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Mortgage-backed securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in fixed maturity securities | $1,753 | $2,040 | ||
[1] | Approximately 59% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company-$14.1 billion; Wells Fargo & Company-$26.5 billion; International Business Machines Corporation-$12.3 billion; and The Coca-Cola Company-$16.9 billion). | |||
[2] | Approximately 55% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company-$13.8 billion; Wells Fargo & Company-$21.9 billion; International Business Machines Corporation-$12.8 billion; and The Coca-Cola Company-$16.5 billion). | |||
[3] | Included in other assets. | |||
[4] | Assets are included in other assets and liabilities are included in accounts payable, accruals and other liabilities. |
Fair_value_measurements_Signif
Fair value measurements - Significant unobservable inputs (Detail) (Significant Unobservable Inputs (Level 3) [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Derivative Contract Liabilities [Member] | |||
Fair value measurements Significant unobservable inputs [Line Items] | |||
Beginning Balance | ($5,255) | ($7,847) | ($9,908) |
Gains (losses) included in earnings | 524 | 2,652 | 1,873 |
Gains (losses) included in other comprehensive income | -1 | ||
Gains (losses) included in regulatory assets and liabilities | 5 | 1 | -2 |
Acquisitions, dispositions and settlements | 190 | ||
Acquisitions | 1 | ||
Dispositions and settlements | 1 | -60 | |
Transfers into (out of) Level 3 | -35 | ||
Ending Balance | -4,759 | -5,255 | -7,847 |
Fixed Maturities [Member] | |||
Fair value measurements Significant unobservable inputs [Line Items] | |||
Beginning Balance | 372 | 652 | 784 |
Gains (losses) included in earnings | 312 | ||
Gains (losses) included in other comprehensive income | 13 | -14 | 5 |
Acquisitions, dispositions and settlements | -8 | ||
Dispositions and settlements | -2 | -578 | |
Transfers into (out of) Level 3 | -375 | -129 | |
Ending Balance | 8 | 372 | 652 |
Equity Securities and Other Investments [Member] | |||
Fair value measurements Significant unobservable inputs [Line Items] | |||
Beginning Balance | 17,958 | 15,785 | 11,691 |
Gains (losses) included in earnings | 522 | ||
Gains (losses) included in other comprehensive income | 1,373 | 3,177 | 4,094 |
Acquisitions | 3,000 | ||
Dispositions and settlements | -31 | ||
Transfers into (out of) Level 3 | -335 | -1,495 | |
Ending Balance | $21,996 | $17,958 | $15,785 |
Fair_value_measurements_Other_
Fair value measurements - Other information (Detail) (Significant Unobservable Inputs (Level 3) [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Other Investments [Member] | Preferred Stock [Member] | Discounted Cash Flow Method [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value, unobservable input, expected duration | 7 years |
Fair value, unobservable input, discount for transferability restrictions and subordination | 1.47% |
Fair value of asset | $14,819 |
Other Investments [Member] | Common Stock Warrants [Member] | Pricing Model, Warrant [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value, unobservable input, discount for transferability and hedging restrictions | 7.00% |
Fair value of asset | 7,175 |
Net Derivative Contract Liabilities [Member] | Equity Index Put Options [Member] | Pricing Model, Option [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value, unobservable input, volatility | 21.00% |
Fair value of liability | 4,560 |
Net Derivative Contract Liabilities [Member] | Credit Default Contracts - Municipalities [Member] | Discounted Cash Flow Method [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value, unobservable input, credit spreads | 0.36% |
Fair value of liability | $250 |
Common_stock_Detail
Common stock (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Class A [Member] | |||
Class of Stock [Line Items] | |||
Shares issued, beginning of year (in shares) | 868,616 | 904,528 | 938,342 |
Conversions of Class A common stock to Class B common stock and exercises of replacement stock options issued in a business acquisition | -30,597 | -35,912 | -33,814 |
Shares issued, end of year (in shares) | 838,019 | 868,616 | 904,528 |
Treasury shares, beginning of year | -9,573 | -9,573 | -98 |
Treasury shares acquired | -2,107 | -9,475 | |
Treasury shares, end of year | -11,680 | -9,573 | -9,573 |
Outstanding, beginning of year (in shares) | 859,043 | 894,955 | 938,244 |
Outstanding, end of year (in shares) | 826,339 | 859,043 | 894,955 |
Class B [Member] | |||
Class of Stock [Line Items] | |||
Shares issued, beginning of year (in shares) | 1,178,775,092 | 1,123,393,956 | 1,069,645,361 |
Conversions of Class A common stock to Class B common stock and exercises of replacement stock options issued in a business acquisition | 47,490,158 | 55,381,136 | 53,748,595 |
Shares issued, end of year (in shares) | 1,226,265,250 | 1,178,775,092 | 1,123,393,956 |
Treasury shares, beginning of year | -1,408,484 | -1,408,484 | -801,985 |
Treasury shares acquired | -1,278 | -606,499 | |
Treasury shares, end of year | -1,409,762 | -1,408,484 | -1,408,484 |
Outstanding, beginning of year (in shares) | 1,177,366,608 | 1,121,985,472 | 1,068,843,376 |
Outstanding, end of year (in shares) | 1,224,855,488 | 1,177,366,608 | 1,121,985,472 |
Common_stock_Parenthetical_Det
Common stock (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 |
Class A [Member] | |
Class of Stock [Line Items] | |
Common Stock, par value per share | $5 |
Common Stock, shares authorized | 1,650,000 |
Class B [Member] | |
Class of Stock [Line Items] | |
Common Stock, par value per share | $0.00 |
Common Stock, shares authorized | 3,225,000,000 |
Common_stock_Narrative_Detail
Common stock - Narrative (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | |
Class of Stock [Line Items] | ||||
Preferred Stock, shares authorized | 1,000,000 | |||
Preferred Stock, shares issued | 0 | |||
Preferred Stock, shares outstanding | 0 | |||
Common Stock Repurchase Program [Member] | ||||
Class of Stock [Line Items] | ||||
Shares repurchase, authorization description | Berkshire's Board of Directors ("Berkshire's Board") has approved a common stock repurchase program under which Berkshire may repurchase its Class A and Class B shares at prices no higher than a 20% premium over the book value of the shares. | |||
Minimum cash and cash equivalent threshold after repurchase of common stock shares, amount | $20,000,000,000 | |||
Number of shares acquired | 0 | |||
WPLG Inc. [Member] | Graham Holding Company [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares exchanged | 1,620,190 | |||
Class B [Member] | ||||
Class of Stock [Line Items] | ||||
Ratio of net earnings per equivalent common share and dividend and distribution rights of Class B shares to Class A shares | 0.000667 | |||
Number of votes entitled per share, number | 0.0001 | |||
Number of shares of Class B stock obtainable from converting one Class A share | 1,500 | |||
Number of shares acquired | 1,278 | 606,499 | ||
Class B [Member] | WPLG Inc. [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares acquired | 1,278 | |||
Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Number of votes entitled per share, number | 1 | |||
Class A equivalent shares outstanding | 1,642,909 | 1,643,954 | ||
Number of shares acquired | 2,107 | 9,475 | ||
Class A [Member] | WPLG Inc. [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares acquired | 2,107 |
Accumulated_other_comprehensiv2
Accumulated other comprehensive income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Ending Balance | $42,732 | $44,025 | |
Portion Attributable to Berkshire Hathaway Shareholders [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 44,025 | 27,500 | 17,654 |
Other comprehensive income, net before reclassifications | 802 | 18,044 | |
Other comprehensive income, net | 9,846 | ||
Reclassifications from accumulated other comprehensive income | -2,095 | -1,498 | |
Transactions with noncontrolling interests | -21 | ||
Net current period other comprehensive income | -1,293 | 16,525 | 9,846 |
Ending Balance | 42,732 | 44,025 | 27,500 |
Unrealized appreciation of investments, net [Member] | Portion Attributable to Berkshire Hathaway Shareholders [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 44,042 | 29,254 | 19,626 |
Other comprehensive income, net before reclassifications | 3,778 | 16,379 | |
Other comprehensive income, net | 9,647 | ||
Reclassifications from accumulated other comprehensive income | -2,184 | -1,591 | |
Transactions with noncontrolling interests | -19 | ||
Net current period other comprehensive income | 1,594 | 14,788 | 9,628 |
Ending Balance | 45,636 | 44,042 | 29,254 |
Foreign currency translation [Member] | Portion Attributable to Berkshire Hathaway Shareholders [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | -146 | -120 | -383 |
Other comprehensive income, net before reclassifications | -1,877 | 25 | |
Other comprehensive income, net | 267 | ||
Reclassifications from accumulated other comprehensive income | 66 | -31 | |
Transactions with noncontrolling interests | -20 | -4 | |
Net current period other comprehensive income | -1,811 | -26 | 263 |
Ending Balance | -1,957 | -146 | -120 |
Prior service and actuarial gains/losses of defined benefit pension plans [Member] | Portion Attributable to Berkshire Hathaway Shareholders [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 46 | -1,601 | -1,589 |
Other comprehensive income, net before reclassifications | -1,130 | 1,534 | |
Other comprehensive income, net | -21 | ||
Reclassifications from accumulated other comprehensive income | 45 | 114 | |
Transactions with noncontrolling interests | -1 | 9 | |
Net current period other comprehensive income | -1,085 | 1,647 | -12 |
Ending Balance | -1,039 | 46 | -1,601 |
Other AOCI transactions [Member] | Portion Attributable to Berkshire Hathaway Shareholders [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 83 | -33 | |
Other comprehensive income, net before reclassifications | 31 | 106 | |
Other comprehensive income, net | -47 | ||
Reclassifications from accumulated other comprehensive income | -22 | 10 | |
Transactions with noncontrolling interests | 14 | ||
Net current period other comprehensive income | 9 | 116 | -33 |
Ending Balance | $92 | $83 | ($33) |
Accumulated_other_comprehensiv3
Accumulated other comprehensive income - Reclassified Amounts (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Investment gains/losses | $3,575 | $4,065 | $1,462 |
Reclassifications before income taxes | 28,105 | 28,796 | 22,236 |
Applicable income taxes | 7,935 | 8,951 | 6,924 |
Total amounts reclassified from other comprehensive income into net earnings | 20,170 | 19,845 | 15,312 |
Insurance and Other [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Investment gains/losses | 3,503 | 3,881 | 990 |
Finance and Financial Products [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Investment gains/losses | 72 | 184 | 472 |
Portion Attributable to Berkshire Hathaway Shareholders [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other | 94 | 153 | |
Reclassifications before income taxes | -3,266 | -2,294 | |
Applicable income taxes | -1,171 | -796 | |
Total amounts reclassified from other comprehensive income into net earnings | -2,095 | -1,498 | |
Portion Attributable to Berkshire Hathaway Shareholders [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Insurance and Other [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Investment gains/losses | -3,288 | -2,382 | |
Portion Attributable to Berkshire Hathaway Shareholders [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Finance and Financial Products [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Investment gains/losses | -72 | -65 | |
Unrealized appreciation of investments, net [Member] | Portion Attributable to Berkshire Hathaway Shareholders [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications before income taxes | -3,360 | -2,447 | |
Applicable income taxes | -1,176 | -856 | |
Total amounts reclassified from other comprehensive income into net earnings | -2,184 | -1,591 | |
Unrealized appreciation of investments, net [Member] | Portion Attributable to Berkshire Hathaway Shareholders [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Insurance and Other [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Investment gains/losses | -3,288 | -2,382 | |
Unrealized appreciation of investments, net [Member] | Portion Attributable to Berkshire Hathaway Shareholders [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Finance and Financial Products [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Investment gains/losses | -72 | -65 | |
Foreign currency translation [Member] | Portion Attributable to Berkshire Hathaway Shareholders [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other | 75 | -31 | |
Reclassifications before income taxes | 75 | -31 | |
Applicable income taxes | 9 | ||
Total amounts reclassified from other comprehensive income into net earnings | 66 | -31 | |
Prior service and actuarial gains/losses of defined benefit pension plans [Member] | Portion Attributable to Berkshire Hathaway Shareholders [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other | 58 | 167 | |
Reclassifications before income taxes | 58 | 167 | |
Applicable income taxes | 13 | 53 | |
Total amounts reclassified from other comprehensive income into net earnings | 45 | 114 | |
Other AOCI transactions [Member] | Portion Attributable to Berkshire Hathaway Shareholders [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other | -39 | 17 | |
Reclassifications before income taxes | -39 | 17 | |
Applicable income taxes | -17 | 7 | |
Total amounts reclassified from other comprehensive income into net earnings | ($22) | $10 |
Pension_plans_Net_periodic_pen
Pension plans - Net periodic pension expense (Detail) (Pension Plans, Defined Benefit [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans, Defined Benefit [Member] | |||
Components of net periodic pension expense | |||
Service cost | $230 | $254 | $247 |
Interest cost | 629 | 547 | 583 |
Expected return on plan assets | -772 | -634 | -610 |
Amortization of actuarial losses and other | 102 | 225 | 220 |
Net pension expense | $189 | $392 | $440 |
Pension_plans_Defined_benefit_
Pension plans - Defined benefit pension plans - Narrative (Detail) (Pension Plans, Defined Benefit [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation for unfunded plans | $1,200,000,000 | $1,000,000,000 |
Estimated future benefit payments | ||
2015 | 840,000,000 | |
2016 | 847,000,000 | |
2017 | 861,000,000 | |
2018 | 868,000,000 | |
2019 | 889,000,000 | |
2020 - 2024 | 4,511,000,000 | |
Expected contribution to pension plans during the next year | $211,000,000 |
Pension_plans_Projected_benefi
Pension plans- Projected benefit obligation, plan assets and net funded status (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
BHE Pension Plan [Member] | |||
Benefit obligations | |||
Accumulated benefit obligation at end of year | $5,105 | $4,664 | |
PBO at beginning of year | 5,006 | 4,284 | |
Service cost | 60 | 46 | |
Interest cost | 226 | 172 | |
Benefits paid | -310 | -275 | |
Business acquisitions | 823 | ||
Actuarial (gains) or losses and other | 416 | -44 | |
PBO at end of year | 5,398 | 5,006 | |
Plan assets | |||
Plan assets at beginning of year | 4,888 | 3,651 | |
Employer contributions | 126 | 150 | |
Benefits paid | -310 | -275 | |
Actual return on plan assets | 525 | 497 | |
Business acquisitions | 818 | ||
Other | -143 | 47 | |
Plan assets at end of year | 5,086 | 4,888 | |
Net funded status - net liability | 312 | 118 | |
All Other Pension Plans [Member] | |||
Benefit obligations | |||
Accumulated benefit obligation at end of year | 9,522 | 8,101 | |
PBO at beginning of year | 8,892 | 9,789 | |
Service cost | 170 | 208 | |
Interest cost | 403 | 375 | |
Benefits paid | -524 | -505 | |
Business acquisitions | 11 | ||
Actuarial (gains) or losses and other | 1,537 | -975 | |
PBO at end of year | 10,489 | 8,892 | |
Plan assets | |||
Plan assets at beginning of year | 8,389 | 6,785 | |
Employer contributions | 122 | 274 | |
Benefits paid | -524 | -505 | |
Actual return on plan assets | 338 | 1,849 | |
Business acquisitions | 1 | ||
Other | -46 | -14 | |
Plan assets at end of year | 8,280 | 8,389 | |
Net funded status - net liability | 2,209 | 503 | |
Pension Plans, Defined Benefit [Member] | |||
Benefit obligations | |||
Accumulated benefit obligation at end of year | 14,627 | 12,765 | |
PBO at beginning of year | 13,898 | 14,073 | |
Service cost | 230 | 254 | 247 |
Interest cost | 629 | 547 | 583 |
Benefits paid | -834 | -780 | |
Business acquisitions | 11 | 823 | |
Actuarial (gains) or losses and other | 1,953 | -1,019 | |
PBO at end of year | 15,887 | 13,898 | 14,073 |
Plan assets | |||
Plan assets at beginning of year | 13,277 | 10,436 | |
Employer contributions | 248 | 424 | |
Benefits paid | -834 | -780 | |
Actual return on plan assets | 863 | 2,346 | |
Business acquisitions | 1 | 818 | |
Other | -189 | 33 | |
Plan assets at end of year | 13,366 | 13,277 | 10,436 |
Net funded status - net liability | $2,521 | $621 |
Pension_plans_Additional_tabul
Pension plans - Additional tabular disclosures (Detail) (Pension Plans, Defined Benefit [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Assumptions applicable to pension benefit obligations and pension expense: | ||
Discount rate | 3.80% | 4.60% |
Expected long-term rate of return on plan assets | 6.70% | 6.70% |
Rate of compensation increase | 3.40% | 3.50% |
Discount rate applicable to pension expense | 4.60% | 4.10% |
Amounts recognized in the Consolidated Balance Sheets: | ||
Net funded status | $2,521 | $621 |
Amounts recognized in other comprehensive income: | ||
Accumulated other comprehensive income (loss), beginning of year | 86 | -2,516 |
Amount included in net periodic pension expense | 55 | 167 |
Gains (losses) current period and other | -1,755 | 2,435 |
Accumulated other comprehensive income (loss), end of year | -1,614 | 86 |
Accounts Payable, Accruals and Other Liabilities [Member] | ||
Amounts recognized in the Consolidated Balance Sheets: | ||
Net funded status | 2,550 | 1,287 |
Losses and Loss Adjustment Expenses [Member] | ||
Amounts recognized in the Consolidated Balance Sheets: | ||
Net funded status | 332 | 309 |
Other Assets [Member] | ||
Amounts recognized in the Consolidated Balance Sheets: | ||
Excess of plan assets over plan obligations | ($361) | ($975) |
Pension_plans_Fair_value_of_pl
Pension plans - Fair value of plan assets (Detail) (Pension Plans, Defined Benefit [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $13,366 | $13,277 | $10,436 |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 482 | 595 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,950 | 7,844 | |
Government Obligations [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 811 | 891 | |
Other Fixed Maturity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 908 | 901 | |
Investment Funds and Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,215 | 3,046 | |
Quoted Prices (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9,352 | 9,304 | |
Quoted Prices (Level 1) [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 250 | 355 | |
Quoted Prices (Level 1) [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,739 | 7,684 | |
Quoted Prices (Level 1) [Member] | Government Obligations [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 701 | 607 | |
Quoted Prices (Level 1) [Member] | Other Fixed Maturity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 67 | 81 | |
Quoted Prices (Level 1) [Member] | Investment Funds and Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 595 | 577 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,681 | 3,660 | |
Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 232 | 240 | |
Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 211 | 160 | |
Significant Other Observable Inputs (Level 2) [Member] | Government Obligations [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 110 | 284 | |
Significant Other Observable Inputs (Level 2) [Member] | Other Fixed Maturity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 841 | 820 | |
Significant Other Observable Inputs (Level 2) [Member] | Investment Funds and Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,287 | 2,156 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 333 | 313 | |
Significant Unobservable Inputs (Level 3) [Member] | Investment Funds and Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $333 | $313 |
Pension_plans_Defined_contribu
Pension plans - Defined contribution pension plans - Narrative (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Contribution Plan Disclosure [Line Items] | |||
Contributions to defined contribution plans | $737 | $690 | $637 |
Contingencies_and_Commitments_1
Contingencies and Commitments - Narrative (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Apr. 29, 2013 | Oct. 01, 2014 | Nov. 13, 2014 | |
Commitments and Contingencies [Line Items] | |||||||
Operating leases, rent expense | $1,484,000,000 | $1,396,000,000 | $1,401,000,000 | ||||
Purchase commitments - 2015 | 14,600,000,000 | ||||||
Purchase commitments - 2016 | 4,900,000,000 | ||||||
Purchase commitments - 2017 | 4,200,000,000 | ||||||
Purchase commitments - 2018 | 3,600,000,000 | ||||||
Purchase commitments - 2019 | 3,000,000,000 | ||||||
Purchase commitments - After 2019 | 13,700,000,000 | ||||||
Estimated cost to acquire certain equity ownership interests of less than wholly-owned subsidiaries | 4,200,000,000 | ||||||
Reduction of shareholders' equity for purchase of noncontrolling interests | 1,800,000,000 | 700,000,000 | |||||
Berkadia Commercial Mortgage (investee) [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Voting interest in investee | 50.00% | ||||||
Commercial paper outstanding | 2,470,000,000 | ||||||
Leucadia National Corporation (venture partner) [Member] | Berkadia Commercial Mortgage (investee) [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Voting interest in investee | 50.00% | ||||||
Berkshire Hathaway Insurance Group [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Reimbursement rate from joint venture partner of Company's surety bond claim losses | 50.00% | ||||||
Marmon [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Payment to acquire noncontrolling interest | 1,400,000,000 | 1,200,000,000 | |||||
Aggregate consideration for acquisition of noncontrolling interest | 1,470,000,000 | ||||||
Van Tuyl Group [Member] | Purchase Agreement [Member] | Insurance and Certain Real Estate Businesses [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Ownership percentage to be acquired | 100.00% | ||||||
Van Tuyl Group [Member] | Purchase Agreement [Member] | Auto Dealerships [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Number of dealers in auto dealership group | 78 | ||||||
Number of states with auto dealership locations | 10 | ||||||
Duracell Company [Member] | Purchase Agreement [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Cash to be acquired at closing | 1,700,000,000 | ||||||
Duracell Company [Member] | Proctor & Gamble Company [Member] | Purchase Agreement [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Value of shares agreed to exchange in business acquisition | 4,800,000,000 | ||||||
IMC International Metalworking Companies B.V. [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Payment to acquire noncontrolling interest | 2,050,000,000 | ||||||
Surety bonds [Member] | Berkshire Hathaway Insurance Group [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Guarantee obligation, maximum amount of exposure | $2,500,000,000 |
Contingencies_and_Commitments_2
Contingencies and Commitments - Operating leases minimum payments (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Minimum rental payments for operating leases | |
2015 | $1,279 |
2016 | 1,159 |
2017 | 1,001 |
2018 | 847 |
2019 | 751 |
After 2019 | 3,605 |
Future minimum rental payments, total | $8,642 |
Business_segment_data_Detail
Business segment data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Total earnings before income taxes | $28,105 | $28,796 | $22,236 | ||||||||
Revenues | 48,259 | 51,199 | 49,762 | 45,453 | 47,049 | 46,541 | 44,693 | 43,867 | 194,673 | 182,150 | 162,463 |
Capital expenditures | 15,185 | 11,087 | 9,775 | ||||||||
Total assets | 526,186 | 484,931 | 526,186 | 484,931 | 427,452 | ||||||
Goodwill at year-end | 60,714 | 57,011 | 60,714 | 57,011 | 54,523 | ||||||
Operating Businesses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before income taxes from operating businesses | 24,536 | 23,260 | 20,079 | ||||||||
Revenues | 190,691 | 175,758 | 158,966 | ||||||||
Capital expenditures | 15,185 | 11,087 | 9,775 | ||||||||
Depreciation of tangible assets | 6,215 | 5,418 | 5,146 | ||||||||
Goodwill at year-end | 60,714 | 57,011 | 60,714 | 57,011 | |||||||
Identifiable assets at year-end | 443,225 | 411,281 | 443,225 | 411,281 | 361,584 | ||||||
Operating Businesses [Member] | Berkshire Hathaway Insurance Group [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before income taxes from operating businesses | 7,025 | 7,802 | 6,079 | ||||||||
Revenues | 45,623 | 41,419 | 39,019 | ||||||||
Capital expenditures | 94 | 89 | 61 | ||||||||
Depreciation of tangible assets | 69 | 58 | 57 | ||||||||
Goodwill at year-end | 15,547 | 15,511 | 15,547 | 15,511 | |||||||
Identifiable assets at year-end | 225,432 | 208,004 | 225,432 | 208,004 | 180,282 | ||||||
Operating Businesses [Member] | Berkshire Hathaway Insurance Group [Member] | Geico [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before income taxes from operating businesses | 1,159 | 1,127 | 680 | ||||||||
Premiums earned | 20,496 | 18,572 | 16,740 | ||||||||
Goodwill at year-end | 1,370 | 1,372 | 1,370 | 1,372 | |||||||
Identifiable assets at year-end | 45,439 | 39,568 | 45,439 | 39,568 | 30,986 | ||||||
Operating Businesses [Member] | Berkshire Hathaway Insurance Group [Member] | General Re [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before income taxes from operating businesses | 277 | 283 | 355 | ||||||||
Premiums earned | 6,264 | 5,984 | 5,870 | ||||||||
Goodwill at year-end | 13,527 | 13,532 | 13,527 | 13,532 | |||||||
Identifiable assets at year-end | 28,692 | 29,956 | 28,692 | 29,956 | 30,477 | ||||||
Operating Businesses [Member] | Berkshire Hathaway Insurance Group [Member] | Berkshire Hathaway Reinsurance and Primary Groups [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Goodwill at year-end | 650 | 607 | 650 | 607 | |||||||
Identifiable assets at year-end | 151,301 | 138,480 | 151,301 | 138,480 | 118,819 | ||||||
Operating Businesses [Member] | Berkshire Hathaway Insurance Group [Member] | Berkshire Hathaway Reinsurance Group [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before income taxes from operating businesses | 606 | 1,294 | 304 | ||||||||
Premiums earned | 10,116 | 8,786 | 9,672 | ||||||||
Operating Businesses [Member] | Berkshire Hathaway Insurance Group [Member] | Berkshire Hathaway Primary Group [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before income taxes from operating businesses | 626 | 385 | 286 | ||||||||
Premiums earned | 4,377 | 3,342 | 2,263 | ||||||||
Operating Businesses [Member] | Berkshire Hathaway Insurance Group [Member] | Investment Income [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before income taxes from operating businesses | 4,357 | 4,713 | 4,454 | ||||||||
Interest, dividend and other investment income | 4,370 | 4,735 | 4,474 | ||||||||
Operating Businesses [Member] | BNSF [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before income taxes from operating businesses | 6,169 | 5,928 | 5,377 | ||||||||
Revenues | 23,239 | 22,014 | 20,835 | ||||||||
Capital expenditures | 5,243 | 3,918 | 3,548 | ||||||||
Depreciation of tangible assets | 1,804 | 1,655 | 1,573 | ||||||||
Goodwill at year-end | 14,819 | 14,819 | 14,819 | 14,819 | |||||||
Identifiable assets at year-end | 62,916 | 59,842 | 62,916 | 59,842 | 56,839 | ||||||
Operating Businesses [Member] | Berkshire Hathaway Energy [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before income taxes from operating businesses | 2,711 | 1,806 | 1,644 | ||||||||
Revenues | 17,614 | 12,743 | 11,747 | ||||||||
Capital expenditures | 6,555 | 4,307 | 3,380 | ||||||||
Depreciation of tangible assets | 2,177 | 1,577 | 1,440 | ||||||||
Goodwill at year-end | 9,599 | 7,784 | 9,599 | 7,784 | |||||||
Identifiable assets at year-end | 71,482 | 62,189 | 71,482 | 62,189 | 46,856 | ||||||
Operating Businesses [Member] | McLane Company [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before income taxes from operating businesses | 435 | 486 | 403 | ||||||||
Revenues | 46,640 | 45,930 | 37,437 | ||||||||
Capital expenditures | 241 | 225 | 225 | ||||||||
Depreciation of tangible assets | 159 | 159 | 149 | ||||||||
Goodwill at year-end | 657 | 701 | 657 | 701 | |||||||
Identifiable assets at year-end | 5,419 | 5,209 | 5,419 | 5,209 | 5,090 | ||||||
Operating Businesses [Member] | Manufacturing Businesses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before income taxes from operating businesses | 4,811 | 4,205 | 3,911 | ||||||||
Revenues | 36,773 | 34,258 | 32,105 | ||||||||
Capital expenditures | 1,324 | 1,037 | 1,062 | ||||||||
Depreciation of tangible assets | 943 | 1,061 | 1,068 | ||||||||
Goodwill at year-end | 14,818 | 13,341 | 14,818 | 13,341 | |||||||
Identifiable assets at year-end | 34,509 | 34,100 | 34,509 | 34,100 | 32,097 | ||||||
Operating Businesses [Member] | Service and Retailing Businesses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before income taxes from operating businesses | 1,546 | 1,469 | 1,272 | ||||||||
Revenues | 14,276 | 13,284 | 11,890 | ||||||||
Capital expenditures | 591 | 488 | 381 | ||||||||
Depreciation of tangible assets | 461 | 413 | 379 | ||||||||
Goodwill at year-end | 3,937 | 3,514 | 3,937 | 3,514 | |||||||
Identifiable assets at year-end | 11,303 | 10,051 | 11,303 | 10,051 | 9,566 | ||||||
Operating Businesses [Member] | Finance and Financial Products Reportable Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings before income taxes from operating businesses | 1,839 | 1,564 | 1,393 | ||||||||
Revenues | 6,526 | 6,110 | 5,933 | ||||||||
Capital expenditures | 1,137 | 1,023 | 1,118 | ||||||||
Depreciation of tangible assets | 602 | 495 | 480 | ||||||||
Goodwill at year-end | 1,337 | 1,341 | 1,337 | 1,341 | |||||||
Identifiable assets at year-end | 32,164 | 31,886 | 32,164 | 31,886 | 30,854 | ||||||
Intersegment Eliminations and Other Reconciling Items [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Interest expense | -313 | -303 | -271 | ||||||||
Earnings before income taxes from operating businesses | -199 | -834 | -997 | ||||||||
Investment and derivative gains/losses | 4,081 | 6,673 | 3,425 | ||||||||
Revenues | -99 | -281 | 72 | ||||||||
Identifiable assets at year-end | $22,247 | $16,639 | $22,247 | $16,639 | $11,345 |
Business_segment_data_Insuranc
Business segment data - Insurance premiums by geographic area (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property/Casualty [Member] | |||
Segment Reporting Information [Line Items] | |||
Premiums written | $36,591 | $30,911 | $29,892 |
Property/Casualty [Member] | United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Premiums written | 31,362 | 25,704 | 23,186 |
Property/Casualty [Member] | Western Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Premiums written | 2,424 | 2,234 | 4,387 |
Property/Casualty [Member] | All Other Geographic Areas [Member] | |||
Segment Reporting Information [Line Items] | |||
Premiums written | 2,805 | 2,973 | 2,319 |
Life/Health [Member] | |||
Segment Reporting Information [Line Items] | |||
Premiums written | 5,842 | 6,299 | 5,835 |
Life/Health [Member] | United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Premiums written | 3,402 | 3,934 | 3,504 |
Life/Health [Member] | Western Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Premiums written | 1,135 | 1,339 | 1,114 |
Life/Health [Member] | All Other Geographic Areas [Member] | |||
Segment Reporting Information [Line Items] | |||
Premiums written | $1,305 | $1,026 | $1,217 |
Business_segment_data_Narrativ
Business segment data - Narrative (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | ||||
Sales and service revenues | $102,200,000,000 | $97,600,000,000 | $85,800,000,000 | |
Wal-Mart Stores, Inc. [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales and service revenues | 13,000,000,000 | 13,000,000,000 | 12,000,000,000 | |
Property, Plant and Equipment [Member] | Geographic Concentration [Member] | United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 88.00% | |||
Sales and Service Revenues [Member] | Geographic Concentration [Member] | United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 85.00% | 85.00% | 85.00% | |
Railroad, Utilities and Energy [Member] | Revenues [Member] | Geographic Concentration [Member] | United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 96.00% | 96.00% | 96.00% | |
Insurance and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales and service revenues | 97,097,000,000 | 92,993,000,000 | 81,447,000,000 | |
Insurance and Other [Member] | Swiss Re Life and Health America [Member] | United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Premiums written, life and health | 1,500,000,000 | |||
Premiums earned, life and health | $1,500,000,000 |
Business_segment_data_Insuranc1
Business segment data - Insurance premiums by type (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property/Casualty [Member] | |||
Segment Reporting Information [Line Items] | |||
Premiums written - Direct | $27,541 | $24,292 | $20,796 |
Premiums written - Assumed | 9,889 | 7,339 | 9,668 |
Premiums written - Ceded | -839 | -720 | -572 |
Premiums written | 36,591 | 30,911 | 29,892 |
Premiums earned - Direct | 26,389 | 23,267 | 20,204 |
Premiums earned - Assumed | 9,872 | 7,928 | 9,142 |
Premiums earned - Ceded | -850 | -797 | -600 |
Premiums earned | 35,411 | 30,398 | 28,746 |
Life/Health [Member] | |||
Segment Reporting Information [Line Items] | |||
Premiums written - Direct | 879 | 931 | 554 |
Premiums written - Assumed | 5,030 | 5,437 | 5,391 |
Premiums written - Ceded | -67 | -69 | -110 |
Premiums written | 5,842 | 6,299 | 5,835 |
Premiums earned - Direct | 879 | 931 | 554 |
Premiums earned - Assumed | 5,030 | 5,425 | 5,356 |
Premiums earned - Ceded | -67 | -70 | -111 |
Premiums earned | $5,842 | $6,286 | $5,799 |
Quarterly_data_Detail
Quarterly data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||||||
Revenues | $48,259 | $51,199 | $49,762 | $45,453 | $47,049 | $46,541 | $44,693 | $43,867 | $194,673 | $182,150 | $162,463 | |||||||||||
Net earnings attributable to Berkshire shareholders | 4,155 | [1] | 4,617 | [1] | 6,395 | [1] | 4,705 | [1] | 4,990 | [1] | 5,053 | [1] | 4,541 | [1] | 4,892 | [1] | 19,872 | 19,476 | 14,824 | |||
Investment and derivative gains/losses | $192 | ($107) | $2,064 | $1,172 | $1,214 | $1,391 | $622 | $1,110 | ||||||||||||||
Class A [Member] | ||||||||||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||||||
Net earnings attributable to Berkshire shareholders per equivalent Class A common share | $2,529 | $2,811 | $3,889 | $2,862 | $3,035 | $3,074 | $2,763 | $2,977 | $12,092 | [2] | $11,850 | [2] | $8,977 | [2] | ||||||||
[1] | Includes realized investment gains/losses, other-than-temporary impairment losses on investments and derivative gains/losses. Derivative gains/losses include significant amounts related to non-cash changes in the fair value of long-term contracts arising from short-term changes in equity prices, interest rates and foreign currency rates, among other factors. After-tax investment and derivative gains/losses for the periods presented above are as follows (in millions): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Investment and derivative gains/losses - 2014 $ 1,172 $ 2,064 $ (107 ) $ 192 Investment and derivative gains/losses - 2013 1,110 622 1,391 1,214 | |||||||||||||||||||||
[2] | 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-fifteen-hundredth (1/1,500) of such amount or $8.06 per share for 2014, $7.90 per share for 2013 and $5.98 per share for 2012. |
Condensed_Financial_Informatio1
Condensed Financial Information - Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Assets: | ||||
Cash and cash equivalents | $63,269 | $48,186 | $46,992 | $37,299 |
Total assets | 526,186 | 484,931 | 427,452 | |
Liabilities and Shareholders' Equity: | ||||
Total liabilities | 283,159 | 260,446 | ||
Berkshire Hathaway shareholders' equity | 240,170 | 221,890 | ||
Total liabilities and shareholders' equity | 526,186 | 484,931 | ||
Berkshire Hathaway (Parent) [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 9,449 | 3,412 | 10,557 | 7,289 |
Investments in fixed maturity and equity securities | 152 | 178 | ||
Investments in and advances to/from consolidated subsidiaries | 227,615 | 215,465 | ||
Investments in H.J. Heinz Holding Corporation | 11,660 | 12,111 | ||
Other assets | 91 | 97 | ||
Total assets | 248,967 | 231,263 | ||
Liabilities and Shareholders' Equity: | ||||
Accounts payable, accrued interest and other liabilities | 100 | 209 | ||
Income taxes | 343 | 853 | ||
Notes payable and other borrowings | 8,354 | 8,311 | ||
Total liabilities | 8,797 | 9,373 | ||
Berkshire Hathaway shareholders' equity | 240,170 | 221,890 | ||
Total liabilities and shareholders' equity | $248,967 | $231,263 |
Condensed_Financial_Informatio2
Condensed Financial Information - Statements of Earnings and Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
From consolidated subsidiaries: | |||||||||||||||||||
Total revenues | $48,259 | $51,199 | $49,762 | $45,453 | $47,049 | $46,541 | $44,693 | $43,867 | $194,673 | $182,150 | $162,463 | ||||||||
Cost and expense items: | |||||||||||||||||||
Income taxes | 7,935 | 8,951 | 6,924 | ||||||||||||||||
Total costs and expenses | 166,568 | 153,354 | 140,227 | ||||||||||||||||
Net earnings attributable to Berkshire Hathaway shareholders | 4,155 | [1] | 4,617 | [1] | 6,395 | [1] | 4,705 | [1] | 4,990 | [1] | 5,053 | [1] | 4,541 | [1] | 4,892 | [1] | 19,872 | 19,476 | 14,824 |
Comprehensive income attributable to Berkshire Hathaway shareholders | 18,579 | 36,022 | 24,670 | ||||||||||||||||
Berkshire Hathaway (Parent) [Member] | |||||||||||||||||||
From consolidated subsidiaries: | |||||||||||||||||||
Dividends and distributions | 4,969 | 6,158 | 6,799 | ||||||||||||||||
Undistributed earnings | 14,496 | 13,657 | 8,301 | ||||||||||||||||
Total income from consolidated subsidiaries | 19,465 | 19,815 | 15,100 | ||||||||||||||||
Other income | 758 | 229 | 88 | ||||||||||||||||
Total revenues | 20,223 | 20,044 | 15,188 | ||||||||||||||||
Cost and expense items: | |||||||||||||||||||
General and administrative | -1 | 94 | 133 | ||||||||||||||||
Interest expense | 236 | 228 | 196 | ||||||||||||||||
Income taxes | 116 | 246 | 35 | ||||||||||||||||
Total costs and expenses | 351 | 568 | 364 | ||||||||||||||||
Net earnings attributable to Berkshire Hathaway shareholders | 19,872 | 19,476 | 14,824 | ||||||||||||||||
Other comprehensive income attributable to Berkshire Hathaway shareholders | -1,293 | 16,546 | 9,846 | ||||||||||||||||
Comprehensive income attributable to Berkshire Hathaway shareholders | $18,579 | $36,022 | $24,670 | ||||||||||||||||
[1] | Includes realized investment gains/losses, other-than-temporary impairment losses on investments and derivative gains/losses. Derivative gains/losses include significant amounts related to non-cash changes in the fair value of long-term contracts arising from short-term changes in equity prices, interest rates and foreign currency rates, among other factors. After-tax investment and derivative gains/losses for the periods presented above are as follows (in millions): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Investment and derivative gains/losses - 2014 $ 1,172 $ 2,064 $ (107 ) $ 192 Investment and derivative gains/losses - 2013 1,110 622 1,391 1,214 |
Condensed_Financial_Informatio3
Condensed Financial Information - Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net earnings attributable to Berkshire Hathaway shareholders | $19,872 | $19,476 | $14,824 |
Adjustments to reconcile net earnings to cash flows from operating activities: | |||
Income taxes payable | 4,905 | 3,514 | 1,710 |
Other noncash adjustments | -341 | 373 | -213 |
Net cash flows from operating activities | 32,010 | 27,704 | 20,950 |
Cash flows from investing activities: | |||
Net cash flows from investing activities | -19,369 | -27,535 | -10,574 |
Cash flows from financing activities: | |||
Other financing activities | 22 | -134 | 48 |
Net cash flows from financing activities | 2,731 | 961 | -806 |
Increase (decrease) in cash and cash equivalents | 15,083 | 1,194 | 9,693 |
Cash and cash equivalents at beginning of year | 48,186 | 46,992 | 37,299 |
Cash and cash equivalents at end of year | 63,269 | 48,186 | 46,992 |
Other cash flow information: | |||
Income taxes paid | 4,014 | 5,401 | 4,695 |
Berkshire Hathaway (Parent) [Member] | |||
Cash flows from operating activities: | |||
Net earnings attributable to Berkshire Hathaway shareholders | 19,872 | 19,476 | 14,824 |
Adjustments to reconcile net earnings to cash flows from operating activities: | |||
Undistributed earnings of subsidiaries | -14,496 | -13,657 | -8,301 |
Income taxes payable | 136 | 396 | 80 |
Other noncash adjustments | -75 | 112 | 101 |
Net cash flows from operating activities | 5,437 | 6,327 | 6,704 |
Cash flows from investing activities: | |||
Investments in H.J. Heinz Holding Corporation | -12,250 | ||
Investments in and advances to/repayments from subsidiaries | 1,673 | -433 | -1,525 |
Net cash flows from investing activities | 1,673 | -12,683 | -1,525 |
Cash flows from financing activities: | |||
Proceeds from borrowings | 832 | 2,611 | 1,740 |
Repayments of borrowings | -792 | -2,656 | -1,751 |
Acquisitions of noncontrolling interests | -1,231 | -836 | -800 |
Acquisitions of treasury stock | -1,296 | ||
Other financing activities | 118 | 92 | 196 |
Net cash flows from financing activities | -1,073 | -789 | -1,911 |
Increase (decrease) in cash and cash equivalents | 6,037 | -7,145 | 3,268 |
Cash and cash equivalents at beginning of year | 3,412 | 10,557 | 7,289 |
Cash and cash equivalents at end of year | 9,449 | 3,412 | 10,557 |
Other cash flow information: | |||
Income taxes paid | 2,512 | 4,080 | 3,406 |
Interest paid | $233 | $205 | $180 |
Note_to_Condensed_Financial_In
Note to Condensed Financial Information - Narrative (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2013 | Jun. 07, 2013 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Maturing: 2015 | $7,444,000,000 | ||
Maturing: 2016 | 3,940,000,000 | ||
Maturing: 2017 | 6,029,000,000 | ||
Maturing: 2018 | 7,694,000,000 | ||
Maturing: 2019 | 3,796,000,000 | ||
Berkshire Hathaway (Parent) [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Purchase of preferred stock, common stock and warrants | 12,250,000,000 | ||
Maturing: 2015 | 1,710,000,000 | ||
Maturing: 2016 | 1,051,000,000 | ||
Maturing: 2017 | 1,144,000,000 | ||
Maturing: 2018 | 808,000,000 | ||
Maturing: 2019 | 755,000,000 | ||
Guarantee of subsidiary debt obligations | 14,600,000,000 | ||
Berkshire Hathaway (Parent) [Member] | Heinz Holding [Member] | Common Stock, Cumulative Compounding Preferred Stock and Warrants [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Purchase of preferred stock, common stock and warrants | 12,250,000,000 | ||
Berkshire Hathaway (Parent) [Member] | Heinz Holding [Member] | Common Stock [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Investment, number of shares purchased | 425,000,000 | ||
Berkshire Hathaway (Parent) [Member] | Heinz Holding [Member] | Warrants Expiring June 7, 2018 [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Number of common shares that can be purchased | 46,000,000 | ||
Berkshire Hathaway (Parent) [Member] | Heinz Holding [Member] | Cumulative Compounding Preferred Stock [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Investment in preferred stock, liquidation value | 8,000,000,000 | ||
Berkshire Hathaway (Parent) [Member] | Equity Index Put Options and Credit Default Derivatives [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Guarantee of subsidiary obligations under derivative liability contracts | $4,800,000,000 |