Berkshire Hathaway (BRK-B) 10-K risk factor changes: FY2022 vs FY2021

[removed: General] [added: General] Business [removed: Risks][added: Risks]

[removed: Terrorist] [added: Terrorist] acts could hurt our operating [removed: businesses.][added: businesses.]

A cyber, biological, nuclear or chemical [added: terrorist] attack could produce significant losses to our worldwide operations.

[removed: Cyber] [added: Cyber] security [removed: risks][added: risks]

Like those of many large businesses, certain of our information systems have been subject to computer viruses, malicious codes, unauthorized access, phishing efforts, denial-of-service attacks and other [removed: cyber-attacks and we expect to be subject to similar attacks in the future as such attacks become more sophisticated and frequent.][added: cyber-attacks.]

[removed: We] [added: We] are dependent on a few key people for our major investment and capital allocation [removed: decisions.][added: decisions.]

Buffett, Chairman of the Board of Directors and Chief Executive Officer, age [removed: 91,] [added: 92,] in consultation with Charles T.

Munger, Vice Chairman of the Board of Directors, age [removed: 98.][added: 99.]

[removed: We] [added: We] need [removed: qualified] [added: qualified] personnel to manage and operate our various [removed: businesses.][added: businesses.]

Our operating subsidiaries also need qualified and competent personnel [removed: in executing their] [added: to execute] business plans and [removed: serving] [added: serve] their customers, suppliers and other stakeholders.

Our inability to [removed: recruit] [added: recruit, train] and retain qualified and competent managers and personnel could negatively affect the operating results, financial condition and liquidity of our subsidiaries and Berkshire as a whole.

[removed: Investments] [added: Investments] are unusually concentrated in equity securities and fair values are subject to loss in [removed: value.][added: value.]

We concentrate a high percentage of the equity security investments of our insurance subsidiaries in a relatively small number of [removed: equity securities.][added: issuers.]

Since a large percentage of our equity securities are held by our insurance subsidiaries, significant decreases in the fair values of these investments will produce significant declines in the statutory surplus of our insurance [removed: business.][added: subsidiaries.]

[removed: Competition] [added: Competition] and technology may erode our business franchises and result in lower [removed: earnings.][added: earnings.]

[removed: Unfavorable] [added: Unfavorable] general economic conditions may significantly reduce our operating earnings and impair our ability to access capital markets at a reasonable [removed: cost.][added: cost.]

Significant deteriorations of economic [removed: conditions] [added: conditions, including significant inflation] over a prolonged period could produce a material adverse effect on one or more of our significant operations.

[removed: Epidemics,] [added: Epidemics,] pandemics or other [removed: outbreaks, including COVID-19,] [added: similar outbreaks] could hurt our operating [removed: businesses.][added: businesses.]

The outbreak of [removed: COVID-19 has adversely affected, and in the future it or other] epidemics, pandemics or [added: other similar] outbreaks [added: in the future] may adversely [removed: affect,] [added: affect] our operations, including [added: the value of] our equity securities portfolio.

This [removed: is or] may be due to closures or restrictions requested or mandated by governmental authorities, disruption to supply chains and workforce, reduction of demand for our products and services, credit losses when customers and other counterparties fail to satisfy their obligations to us, and volatility in global equity securities markets, among other factors.

[removed: Regulatory] [added: Regulatory] changes may adversely impact our future operating [removed: results.][added: results.]

Such initiatives [removed: addressed] [added: addressed,] for example, the regulation of banks and other major financial institutions, [added: the regulation of] products and environmental and global-warming matters.

[removed: Risks] [added: Risks] unique to our regulated [removed: businesses][added: businesses]

[removed: Our] [added: Our] tolerance for risk in our insurance businesses may result in significant underwriting [removed: losses.][added: losses.]

We employ various disciplined underwriting practices intended to mitigate potential losses and attempt to take into account all possible correlations and avoid writing groups of policies from which pre-tax losses from a single catastrophe event might aggregate [removed: above $10] [added: in excess of $15] billion.

[removed: Additionally, various] [added: Various] provisions of our policies, [added: negotiated to limit our risk,] such as limitations or exclusions from coverage, [removed: negotiated to limit our risks,] may not be enforceable in the manner we [removed: intend.][added: intend, as it is possible that a court or regulatory authority could nullify or void an exclusion or limitation, or legislation could be enacted modifying or barring the use of these exclusions and limitations.]

Our estimated unpaid losses arising under contracts covering property and casualty insurance risks are large [removed: ($125] [added: ($143] billion at December 31, [removed: 2021),] [added: 2022),] and a small percentage increase to those liabilities can result in materially lower reported earnings.

[removed: Climate] [added: Climate] change [added: and the regulation of greenhouse gas (“GHG”) emissions] may impact our [removed: businesses.][added: businesses.]

Climate change could cause [removed: increases in] [added: or intensify] hurricanes, floods, wildfires, and other [removed: risks] [added: extreme weather events] that [removed: could produce losses affecting] [added: may increase physical risks to and impacts on] our [removed: businesses.][added: operations.]

[removed: Also,] [added: The] failure to comply with new or existing regulations or [removed: reinterpretations] [added: reinterpretation] of existing regulations relating to climate change could have a significant adverse effect on our financial results.

[removed: Changes] [added: Changes] in regulations and regulatory actions can adversely affect our operating results and our ability to allocate [removed: capital.][added: capital.]

Failure to comply with or reinterpretations of existing regulations and new legislation or regulations, such as those relating to air [removed: and water] quality, [removed: renewable portfolio standards,] [added: climate change,] emissions performance standards, [removed: climate change,] [added: water quality,] coal [removed: combustion byproduct disposal, hazardous and solid waste disposal, protected species] [added: ash disposal] and other environmental matters, or changes in the nature of the regulatory process may have a significant adverse impact on our financial results.

[removed: Additionally, system] [added: System] assets may need to be operational for long periods of time in order to justify the financial investment.

We expect to be subject to similar attacks in the future as such attacks become more sophisticated and frequent.

The impacts of climate change and the regulation of GHG emissions could impact our businesses to varying degrees.

An increase in the frequency or intensity of extreme weather events and storms could impact the physical assets of our non-insurance operations and could produce losses affecting our businesses.

Similarly, extreme weather events may produce losses affecting our insurance operations as their primary business is to monitor, assess and price risk, including climate-related risk, at an expected economic profit to address the risk-transfer needs of their insurance customers.

Additional GHG policies, including legislation, may emerge that accelerate the transition to a lower GHG emitting economy and could, in turn, increase costs for our businesses to comply with those policies, including BNSF and BHE, which combined represent more than 90% of Berkshire’s direct emissions.

It is possible that significant claims may emerge or develop in the future from the policies we have written in the past.

As industry practices and legal, social and other environmental conditions change, unexpected and unintended issues related to claims and coverage may emerge, including new or expanded theories of liability.

These or other changes could impose new financial obligations on us by extending coverage beyond our underwriting intent.

In some instances, these changes may not become apparent until sometime after we have issued insurance or reinsurance contracts that are affected by the changes.

As a result, the full extent of liability under our insurance or reinsurance contracts may not be known for many years after a contract is issued.

K-27

K-24

The degree of estimation error inherent in the process of estimating property and casualty insurance loss reserves may result in significant underwriting losses.

[removed: Results] [added: Results] of [removed: Operations][added: Operations]

Net earnings [added: (loss)] attributable to Berkshire Hathaway shareholders for each of the past three years are disaggregated in the table that follows.

| | [removed: | 2021] [added: 2022] | | | | [removed: 2020] [added: 2021] | | | | [removed: 2019] [added: 2020] | | |

| Insurance – underwriting | [removed: |] $ | [removed: 728] [added: (90] | [added: )] | | $ | [removed: 657] [added: 728] | | | $ | [removed: 325] [added: 657] | |

| Insurance – investment income | | [removed: | 4,807] [added: 6,484] | | | | [removed: 5,039] [added: 4,807] | | | | [removed: 5,530] [added: 5,039] | |

| Railroad | | [removed: | 5,990] [added: 5,946] | | | | [removed: 5,161] [added: 5,990] | | | | [removed: 5,481] [added: 5,161] | |

[removed: | Utilities] [added: Utilities] and [removed: energy | | | 3,495 | | | | 3,091 | | | | 2,840 | |][added: Energy]

| Manufacturing, service and retailing | | [removed: | 11,120] [added: 12,512] | | | | [removed: 8,300] [added: 11,120] | | | | [removed: 9,372] [added: 8,300] | |

| Investment and derivative [removed: gains/losses |] [added: contract gains (losses)] | | [removed: 62,340] [added: (53,612] | [added: )] | | | [removed: 31,591] [added: 62,340] | | | | [removed: 57,445] [added: 31,591] | |

| Net earnings [added: (loss)] attributable to Berkshire Hathaway shareholders | [removed: |] $ | [removed: 89,795] [added: (22,819] | [added: )] | | $ | [removed: 42,521] [added: 89,795] | | | $ | [removed: 81,417] [added: 42,521] | |

[removed: | * |] Includes goodwill and indefinite-lived intangible asset impairment charges of [added: $157 million in 2022,] $259 million in [removed: 2021,] [added: 2021 and] $11.0 billion in [removed: 2020 and $435 million in 2019,] [added: 2020,] which includes our share of charges recorded by Kraft [removed: Heinz. |][added: Heinz.*]

Nor can we [added: reliably] predict how these events will alter the future consumption patterns of consumers and businesses we serve.

[removed: Our insurance businesses] [added: Insurance underwriting] generated [added: an] after-tax [removed: earnings from underwriting] [added: loss] of [removed: $728] [added: $90] million in [removed: 2021, $657] [added: 2022 and after-tax earnings of $728] million in [removed: 2020] [added: 2021] and [removed: $325] [added: $657] million in [removed: 2019.][added: 2020.]

Insurance underwriting results included after-tax losses from significant catastrophe events of approximately [removed: $2.3] [added: $2.4] billion in [removed: 2021, $750 million] [added: 2022, $2.3 billion] in [removed: 2020] [added: 2021] and [removed: $800] [added: $750] million in [removed: 2019.][added: 2020.]

Underwriting results in 2021 were favorably impacted by reductions in incurred losses for prior accident years under property and casualty [added: insurance and reinsurance] contracts.

Underwriting results in 2021 were negatively impacted by [removed: reductions in earned premium from the GEICO Giveback program,] higher private passenger auto claims frequencies and severities [removed: estimates] and [removed: higher losses] [added: by the reduction] in [added: earned premium from] the [added: GEICO Giveback program, as well as from high claims costs in the] life reinsurance business.

Underwriting results in 2020 included the effects of the pandemic, arising from premium reductions from the GEICO Giveback program, [added: significantly] reduced claims frequencies for private passenger automobile insurance and increased loss estimates for certain commercial insurance [removed: and property and casualty reinsurance business.][added: coverages.]

[removed: Earnings] [added: After-tax earnings from insurance investment income] in 2021 and 2020 were negatively affected by [removed: declines in] [added: low] interest rates on our substantial holdings of cash and U.S. Treasury Bills.

[removed: Results] [added: Results] of [removed: Operations] [added: Operations] *(Continued)*

Earnings in 2020 reflected [removed: lower] [added: relatively low] railroad operating revenues from [removed: lower] [added: reduced] shipping volumes, attributable to the [removed: negative effects of the] COVID-19 pandemic, partly offset by lower operating costs and the effects of productivity improvements.

After-tax earnings of our utilities and energy business [removed: in 2021] increased [removed: 13.1% versus 2020 and increased 8.8%] [added: 9.3%] in [removed: 2020] [added: 2022] compared to [removed: 2019.][added: 2021 and 13.7% in 2021 versus 2020.]

The increase in [removed: 2021 included] [added: 2022 reflected] higher earnings from [removed: the utilities and natural gas pipelines] [added: other energy] businesses, including [removed: the effects of a business acquisition,] [added: tax equity investments] and [removed: from] the [removed: real estate brokerage business, while the earnings increase in 2020 reflected increased tax benefits] [added: Northern Powergrid businesses, as well as] from [removed: renewable energy and increased] [added: the natural gas pipeline businesses, partly offset by lower] earnings from the real estate brokerage business.

Earnings [removed: in 2021] from our manufacturing, service and retailing businesses increased [removed: 34.0% versus 2020] [added: 12.5% in 2022 compared to 2021] and [removed: declined 11.4%] [added: 34.0%] in [removed: 2020] [added: 2021] versus [removed: 2019.][added: 2020.]

[removed: While] [added: Many of our businesses generated significantly higher earnings in 2021 compared to 2020, attributable to relatively strong] customer demand for products [removed: was relatively high during the year, several of our businesses experienced] [added: and] higher [added: selling prices, partially offset by higher] materials, freight and other input costs attributable to ongoing disruptions in global supply chains.

Other earnings [added: also] included after-tax goodwill and indefinite-lived intangible asset impairment charges of [added: $157 million in 2022,] $259 million in [removed: 2021,] [added: 2021 and] $11.0 billion in [removed: 2020 and $435 million in 2019.][added: 2020.]

Other earnings [removed: in 2021 also] included after-tax foreign exchange rate gains of [removed: $955 million] [added: approximately $1.3 billion in 2022] and [added: $1.0 billion in 2021 and] after-tax losses of $764 million in 2020 related to [added: the] non-U.S. Dollar denominated debt issued by Berkshire and its U.S.-based finance subsidiary, Berkshire Hathaway Finance Corporation (“BHFC”).

Investment and derivative [removed: gains/losses] [added: contract gains (losses)] in each of the three years presented predominantly derived from our investments in equity securities and included significant net unrealized gains [added: and losses] from market price changes.

We believe that investment [added: gains] and [removed: derivative gains/losses,] [added: losses on investments in equity securities,] whether realized from dispositions or unrealized from changes in market [removed: prices of equity securities,] [added: prices,] are generally meaningless in understanding our reported quarterly or annual results or evaluating the economic performance of our operating businesses.

[removed: Insurance—Underwriting][added: Insurance—Underwriting]

[removed: Generally, we] [added: We currently] consider [added: pre-tax] incurred losses exceeding [removed: $100] [added: $150] million from a current year catastrophic event to be significant.

[removed: The significant] [added: Significant] catastrophe events in [removed: 2021] [added: 2022] included Hurricane [removed: Ida] [added: Ian] and floods in [removed: Europe] [added: Australia, while significant events] in [removed: the third quarter, as well as] [added: 2021 included Hurricane Ida, floods in Europe and] Winter Storm [removed: Uri in the first quarter.][added: Uri.]

Unpaid loss estimates, including estimates under retroactive reinsurance contracts, were approximately [added: $143 billion as of December 31, 2022 and] $125 billion as of December 31, 2021.

[removed: Insurance—Underwriting (Continued)][added: Insurance—Underwriting *(Continued)*]

Our insurance and reinsurance businesses are GEICO, Berkshire Hathaway Primary Group [added: (“BH Primary”)] and Berkshire Hathaway Reinsurance [removed: Group.][added: Group (“BHRG”).]

| | [removed: 2021] [added: 2022] | | | | [removed: 2020] [added: 2021] | | | | [removed: 2019] [added: 2020] | | |

| GEICO | $ | [removed: 1,259] [added: (1,880] | [added: )] | | $ | [removed: 3,428] [added: 1,259] | | | $ | [removed: 1,506] [added: 3,428] | |

| Berkshire Hathaway Primary Group | | [removed: 607] [added: 393] | | | | [removed: 110] [added: 607] | | | | [removed: 383] [added: 110] | |

| Berkshire Hathaway Reinsurance Group | | [removed: (930] [added: 1,389] | [removed: )] | | | [removed: (2,700] [added: (930] | ) | | | [removed: (1,472] [added: (2,700] | ) |

| Pre-tax underwriting earnings | | [removed: 936] [added: (98] | [added: )] | | | [removed: 838] [added: 936] | | | | [removed: 417] [added: 838] | |

| Income taxes and noncontrolling interests | | [removed: 208] [added: (8] | [added: )] | | | [removed: 181] [added: 208] | | | | [removed: 92] [added: 181] | |

| Utilities and energy | | 3,904 | | | | 3,572 | | | | 3,141 | |

| Other* | | 2,037 | | | | 1,238 | | | | (11,368 | ) |

The COVID-19 pandemic affected our operating businesses in varying ways and degrees, particularly in 2020 and 2021.

Significant disruptions of supply chains and higher costs emerged in 2021 and persisted in 2022.

Further, geopolitical conflicts, including the Russia-Ukraine conflict, developed in 2022 and are continuing in 2023.

We cannot reliably predict future economic effects of these events on our businesses.

Underwriting results in 2022 were also negatively impacted by increases in private passenger automobile claims frequencies and severities at GEICO, and favorably impacted by higher earnings from reinsurance underwriting and foreign currency exchange rate gains arising from the remeasurement of non-U.S. Dollar denominated liabilities of our U.S. insurance subsidiaries.

After-tax earnings from insurance investment income increased $1.7 billion in 2022 compared to 2021, attributable to increased dividend income and higher interest rates.

After-tax earnings of our railroad, BNSF were relatively unchanged in 2022 compared to 2021 and increased 16.1% in 2021 versus 2020.

Results in 2022 reflected higher revenue per car/unit, substantially offset by lower overall freight volumes and higher fuel and other operating costs.

Operating results in 2022 were mixed among our various businesses.

While customer demand for products and services was relatively good in 2022, demand began to weaken in the second half of the year at certain of our businesses.

We experienced the negative effects of higher materials, freight, labor and other input costs through much of 2022.

On October 19, 2022, Berkshire acquired Alleghany Corporation (“Alleghany”), which operates property and casualty insurance and reinsurance businesses.

These businesses were included in the BH Primary and BHRG underwriting results beginning as of that date.

We strive to produce pre-tax underwriting earnings (premiums earned less losses incurred and underwriting expenses) over the long term in all business categories, except for BHRG’s retroactive reinsurance and periodic payment annuity contracts.

Time-value-of-money is an important element in establishing prices for these contracts.

Ultimate claim payments can extend for decades and are expected to exceed premiums, producing underwriting losses over the claim settlement periods, primarily through deferred charge amortization and discount accretion charges.

| | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | |

GEICO’s pre-tax underwriting losses in 2022 reflected significant increases in average claims severities, primarily due to significant cost inflation in property and physical damage claims, which began to accelerate in the second half of 2021 and have continued through 2022.

Increases in used car prices are producing increased claims severities on total losses and shortages of car parts are contributing to elevated claims severities on partial losses.

In addition, injury claims severities continued to trend higher in 2022.

Insurance—Underwriting *(Continued)*

2022 versus 2021

Premiums written increased $712 million (1.9%) in 2022 compared to 2021, reflecting increases in average premiums per auto policy due to rate increases, which were substantially offset by a decrease in policies-in-force.

Voluntary auto policies-in-force declined 8.9% in 2022 compared to 2021 while average premiums per voluntary auto policy increased 11.3%.

Premiums earned increased $1.3 billion (3.4%) in 2022 compared to 2021, partially attributable to a reduction in 2021 of approximately $475 million from the remaining impact of the GEICO Giveback program.

GEICO’s ratio of losses and loss adjustment expenses to premiums earned (the “loss ratio”) was 93.1% in 2022, an increase of 10.9 percentage points over 2021.

The increase was primarily attributable to higher claims frequencies and severities, as well as lower reductions of ultimate loss estimates for prior years’ events.

The reductions in 2022 reflected decreases in all major coverages except collision and property damage coverages, while the reductions in 2021 were across all major coverages.

Losses and loss adjustment expenses were approximately $400 million from Hurricane Ian in 2022 and $375 million from Hurricane Ida in 2021.

Underwriting expenses decreased $881 million (16.2%) in 2022 compared to 2021, primarily due to significant reductions in advertising costs and lower employee-related costs.

GEICO’s expense ratio (underwriting expense to premiums earned) was 11.7% in 2022, a decrease of 2.8 percentage points compared to 2021, attributable to both the decrease in expenses as well as the increase in earned premiums.

GEICO has successfully obtained premium rate increase approvals from certain states in response to the significant claims costs increases it has experienced in recent years.

As a result, we currently expect GEICO to generate an underwriting profit in 2023.

Insurance—Underwriting *(Continued)*

This group also includes Alleghany’s RSUI Group Inc. and CapSpecialty, Inc. (“Alleghany Insurance”) beginning October 19, 2022.

| | | | | | | | | | | | | | | | | | | | | | | | |

| | Amount | | | | % | | | | Amount | | | | % | | | | Amount | | | | % | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Other* | | | 1,315 | | | | (11,318 | ) | | | 424 | |

| --- | --- |

The COVID-19 pandemic negatively affected most of our businesses beginning in March of 2020, with the effects to date ranging from relatively minor to severe.

Earnings of most of our manufacturing, service and retailing businesses declined considerably, and in certain instances severely, in the second quarter of 2020.

Over the second half of 2020 and continuing in 2021, many of these businesses experienced significant recoveries in revenues and earnings, in some instances exceeding pre-pandemic levels.

However, many of our businesses were negatively affected by ongoing global supply chain disruptions, including those attributable to major winter storms and a hurricane in North America, which contributed to higher input costs.

We cannot reliably predict future economic effects of the pandemic or when business activities at our operations will completely normalize.

In each year, we generated underwriting earnings from primary insurance and underwriting losses from reinsurance.

After-tax earnings from insurance investment income in 2021 decreased 4.6% compared to 2020 and declined 8.9% in 2020 versus 2019.

K-32

After-tax earnings of our railroad business in 2021 rose 16.1% compared to 2020 and decreased 5.8% in 2020 compared to 2019.

Many of our businesses generated significantly higher earnings in 2021 compared to 2020.

The effects of the COVID-19 pandemic have varied among our businesses relative to significance and duration.

Underwriting results of certain of our commercial insurance and reinsurance businesses were negatively affected in 2021 and 2020 by estimated losses and costs associated with the COVID-19 pandemic, including incremental provisions for claims and uncollectible premiums and incremental operating costs to maintain customer service levels.

The effects of the pandemic on future periods may be affected by judicial rulings and regulatory and legislative actions pertaining to insurance coverage and claims and by its effects on general economic activity, which we cannot reasonably estimate at this time.

In addition, average property claims severities increased due to increases in used vehicle valuations.

2020 versus 2019

Premiums written and earned in 2020 decreased $1.1 billion (3.0%) and $479 million (1.3%), respectively, compared to 2019.

The GEICO Giveback program reduced premiums written $2.9 billion and premiums earned $2.5 billion in 2020.

Voluntary auto policies-in-force increased approximately 820,000 during 2020.

GEICO’s loss ratio was 74.1%, a decrease of 7.2 percentage points compared to 2019.

The decrease in the loss ratio reflected declines in claims frequencies, partly offset by increases in claims severities and the impact of lower premiums earned attributable to the GEICO Giveback program.

Losses incurred included $81 million in 2020 from Hurricanes Laura and Sally and U.S. wildfires.

There were no losses from significant catastrophe events in 2019.

Underwriting expenses in 2020 increased $518 million (10.1%) compared to 2019, reflecting higher employee-related, advertising and technology costs, partly offset by lower premium taxes.

GEICO’s expense ratio in 2020 was 16.1%, an increase of 1.6 percentage points compared to 2019.

The expense ratio increase was primarily attributable to the decline in earned premiums from the GEICO Giveback program.

Premiums written increased $369 million (3.7%) in 2020 compared to 2019, reflecting increased premiums written from BH Specialty (34%) and MedPro Group (9%), partially offset by a 13% decrease in premiums written by our other primary insurers.

The decline in volume by our other primary insurers was primarily due to lower workers’ compensation and commercial automobile volumes and the effect of the divestiture of Applied Underwriters in October 2019.

BH Primary’s loss ratios were 70.0% in 2021, 74.1% in 2020 and 69.1% in 2019.

Accordingly, we could experience significant increases in claims liabilities in the future attributable to higher-than-expected claim settlements, adverse litigation outcomes or judicial rulings and other factors not currently anticipated.

Underwriting expenses increased $485 million (20.4%) in 2021 compared to 2020, reflecting the increase in business, changes in business mix and the costs associated with new product development.

The expense ratio in 2021 was relatively unchanged versus 2020.

The expense ratio in 2020 declined 2.0 percentage points compared to 2019 and reflected changes in business mix and the impact of the Applied Underwriters divestiture.

In addition, we write periodic payment annuity contracts through BHLN.

Generally, we strive to generate underwriting profits.

However, time-value-of-money concepts are important elements in establishing prices for retroactive reinsurance and periodic payment annuity businesses due to the expected long durations of the claim liabilities.

We expect to incur pre-tax underwriting losses from such businesses, primarily through deferred charge amortization and discount accretion charges.

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[removed: Management’s] [added: Management’s] Report on Internal Control Over Financial [removed: Reporting][added: Reporting]

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of December 31, [removed: 2021,] [added: 2022,] as required by the Securities Exchange Act of 1934 Rule 13a-15(c).

Based on our evaluation under the framework in *Internal Control—Integrated Framework* (2013), our management concluded that our internal control over financial reporting was effective as of December 31, [removed: 2021.][added: 2022.]

The effectiveness of our internal control over financial reporting as of December 31, [removed: 2021] [added: 2022] has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which appears on page K-67.

February 25, 2023

February 26, 2022

The Berkshire Code of Business Conduct and Ethics emphasizes, among other things, the commitment to ethics and compliance with [removed: the law] [added: government laws] and [added: regulations and] provides basic standards for ethical and legal behavior of its employees.

Berkshire and its consolidated subsidiaries employed approximately [removed: 372,000] [added: 383,000] people worldwide at the end of [removed: 2021,] [added: 2022,] of which approximately [removed: 77%] [added: 78%] were in the United States [added: (“U.S.”)] and [removed: 21%] [added: 20%] were represented by unions.

Consistent with Berkshire’s decentralized management philosophy, Berkshire’s operating businesses individually establish specific policies and practices concerning the attraction and retention of personnel within [removed: the] [added: their] organizations.

Given the wide variations in the nature and size of business activities, [added: specific] policies and practices [removed: often] [added: may] vary widely among Berkshire’s operating subsidiaries.

Policies and practices commonly address, among other things: maintaining a safe work environment and minimizing or eliminating workplace injuries; offering competitive [removed: compensation to employees,] [added: compensation,] which includes various health insurance and retirement benefits, as well as [removed: other benefits such as] incentives to recognize and reward performance; wellness programs; training, learning and career advancement opportunities; and hiring practices intended to identify qualified candidates and promote diversity and inclusion in the workforce.

[removed: Insurance] [added: Insurance] and Reinsurance [removed: Businesses][added: Businesses]

Berkshire’s insurance subsidiaries employed approximately [removed: 50,500] [added: 50,000] people at the end of [removed: 2021.][added: 2022.]

Insurers based in the [removed: United States (“U.S.”)] [added: U.S.] are subject to regulation by their states of domicile and by those states in which they are licensed to write policies on an admitted basis.

While the IAIS standards do not have legal effect, [removed: the states] [added: U.S. state insurance departments] and the NAIC are implementing various group supervision regulatory tools and mandates that are responsive to certain IAIS standards.

U.S. state regulators [removed: now] require insurance groups to file an annual [removed: report, the] [added: report and an] Own Risk Solvency Assessment or ORSA, with the group’s lead supervisor.

The NAIC is also developing further tools, including various liquidity assessments, that will likely be imposed on insurance groups in the [removed: near] future.

[removed: Collectively, the] [added: The] combined statutory surplus of Berkshire’s U.S.-based insurers was approximately [removed: $301] [added: $272] billion at December 31, [removed: 2021.][added: 2022.]

The aggregate deductible in [removed: 2022] [added: 2023] for Berkshire’s insurance group is expected to approximate [removed: $1.6] [added: $2.25] billion.

[removed: | | • |] in some countries, insurers are required to prepare and file monthly and/or quarterly financial reports, and in others, only annual reports; [removed: |]

[removed: | | • |] some regulators require intermediaries to be involved in the sale of insurance products, whereas other regulators permit direct sales contact between the insurer and the customer; [removed: |]

[removed: | | • |] the extent of restrictions imposed upon an insurer’s use of local and offshore reinsurance vary; [removed: |]

[removed: | | • |] policy form filing and rate regulation vary by country; [removed: |]

[removed: | | • |] the frequency of contact and periodic on-site examinations by insurance authorities differ by country; [removed: |]

[removed: | | • |] the scope and prescriptive requirements of an insurer’s risk management and governance framework vary significantly by country; and [removed: |]

[removed: | | • |] regulatory requirements relating to insurer dividend policies vary by country. [removed: |]

In anticipation of the U.K. leaving the EU, Berkshire Hathaway European Insurance DAC in Ireland was established to permit property and casualty insurance and reinsurance businesses to continue to operate in the [removed: EU, and Berkshire continues to maintain a substantial presence in London following Brexit.][added: EU.]

Except for retroactive reinsurance and periodic payment annuity [removed: products that] [added: products, which] generate significant amounts of up-front premiums along with estimated claims expected to be paid over long time periods (creating “float,” see Investments section), Berkshire expects to achieve an underwriting profit over time and [removed: to] [added: that its managers will] reject inadequately priced risks.

[removed: GEICO—GEICO] [added: GEICO—GEICO] is headquartered in Chevy Chase, Maryland.

GEICO also provides insurance for motorcycles, all-terrain vehicles, recreational vehicles, boats and small commercial fleets and acts as an agent for other insurers who offer homeowners, renters, life and identity management insurance to individuals [removed: who desire] [added: desiring] insurance coverages other than those offered by GEICO.

GEICO’s advertising campaigns and competitive rates contributed to a cumulative increase in voluntary policies-in-force of approximately [removed: 26.0%] [added: 4.0%] over the past five years.

According to the most recently published A.M. Best data for [removed: 2020,] [added: 2021,] the five largest automobile insurers had a combined market share in [removed: 2020] [added: 2021] of approximately [removed: 59.7%] [added: 60.5%] based on written premiums, with GEICO’s market share being the second largest at approximately [removed: 13.5%.][added: 14.4%.]

[removed: Since the publication of that data,] GEICO’s management estimates its current market share is approximately [removed: 14.2%.][added: 13.9%.]

Competition for private passenger automobile [removed: insurance, which is substantial,] [added: insurance] tends to focus on price and level of customer service provided.

[removed: Berkshire] [added: Berkshire] Hathaway Primary [removed: Group—The] [added: Group—The] Berkshire Hathaway Primary Group (“BH Primary”) is a collection of independently managed insurers that provide a wide variety of insurance coverages to policyholders located principally in the [removed: United States.][added: U.S. These various operations are discussed below.]

The Berkshire Hathaway Homestate Companies (“BHHC”) is a group of insurers offering workers’ compensation, commercial [removed: auto] [added: automobile] and commercial property coverages to a diverse client base.

BH Specialty writes primary and excess [added: and surplus] policies on an admitted and [removed: surplus] [added: non-admitted] basis in the U.S., and on a local or foreign non-admitted basis outside the U.S. BH Specialty is based in Boston, Massachusetts, with regional offices [removed: currently] in several U.S. cities.

BH Specialty also maintains international offices [added: and branches] located in Australia, New Zealand, Canada and several countries in Asia, Europe and the Middle East.

MedPro Group (“MedPro”) is a leading provider of healthcare liability (“HCL”) insurance [removed: in the United States.][added: based on premiums written.]

U.S. Liability Insurance Company (“USLI”) includes a group of five specialty insurers that underwrite commercial, professional and personal lines [added: of] insurance on an admitted basis, as well as on an excess and surplus basis.

MLMIC Insurance Company (“MLMIC”) [removed: has been the] [added: is a] leading writer of medical professional liability insurance in New York [removed: State for over 40 years.][added: State.]

[removed: Berkshire] [added: Berkshire] Hathaway Reinsurance [removed: Group—Berkshire’s] [added: Group—Berkshire’s] combined global reinsurance business, referred to as the Berkshire Hathaway Reinsurance Group (“BHRG”), offers a wide range of coverages on property, casualty, life and health risks to insurers and reinsurers worldwide.

BHRG conducts business activities in [removed: 24] [added: 27] countries.

Reinsurance business is written through NICO and [removed: certain] [added: several] other Berkshire insurance subsidiaries [removed: (collectively, the “NICO Group”) and] [added: (“NICO Group”),] General Re Corporation, [removed: domiciled in Delaware,] and its subsidiaries [removed: (collectively the “General] [added: (“General] Re [added: Group”) and Alleghany’s Transatlantic Reinsurance Company and affiliates (“TransRe] Group”).

[removed: Property/casualty][added: *Property/casualty*]

A significant portion of NICO Group’s annual reinsurance premium volume currently derives from a 20% quota-share agreement with Insurance Australia Group Limited (“IAG”) that [removed: expires July 1, 2025.][added: incepted in 2015.]

Berkshire’s consolidated U.S. workforce demographics, based on U.S. Equal Employment Opportunity Commission guidelines, are available on its website (https://www.berkshirehathaway.com), under sustainability.

Berkshire also continues to maintain a substantial presence in London following Brexit.

Alleghany Corporation (“Alleghany”), based in New York, New York, was acquired by Berkshire on October 19, 2022.

Alleghany’s operating subsidiaries include property and casualty reinsurance and insurance, as well as a portfolio of non-financial businesses.

Information regarding Alleghany’s primary insurance and reinsurance activities is provided in the Berkshire Hathaway Primary Group and Berkshire Hathaway Reinsurance Group sections and its non-insurance businesses are included in the manufacturing and services sections.

During 2022, GEICO experienced a reduction of 1.7 million voluntary policies-in-force after flat year-over-year growth from 2020 to 2021.

The COVID-19 pandemic and subsequent supply chain disruptions affecting automobile manufacturers have impacted GEICO’s business and underwriting results in 2020 and thereafter.

Alleghany’s property and casualty insurance business is conducted in the U.S. on both an admitted and non-admitted basis through RSUI Group, Inc. and its subsidiaries (“RSUI”) and CapSpecialty, Inc. and its subsidiaries (“CapSpecialty”).

RSUI and CapSpecialty primarily write specialty insurance in the property, umbrella/excess liability, professional liability, directors’ and officers’ liability, and general liability lines of business.

Insurance is written through independent wholesale insurance brokers, retail agents and managing general agents.

Berkshire Hathaway Direct Insurance Company and its affiliates (“BH Direct”) offer commercial insurance products (including workers’ compensation, property, auto, general and professional liability) to small business customers.

BH Direct’s products are primarily sold through two internet-based distribution platforms, biBERK.com and Threeinsurance.com.

BH Direct writes policies on an admitted basis and is based in Stamford, Connecticut.

The NICO Group and Gen Re Group underwriting operations in the U.S. are based in Stamford, Connecticut and the TransRe Group is based in New York, New York.

The agreement was renewed, and extended, effective January 1, 2023, with an expiration of December 31, 2029.

The TransRe Group provides pro-rata and excess-of-loss reinsurance across various property and casualty lines of business.

Contracts are written on both a treaty and facultative basis to insurance and other reinsurance companies in the U.S. and in foreign markets through subsidiaries and branches in numerous countries.

Business is written primarily through brokers, and to a lesser extent on a direct basis.

Premiums from such contracts may be exceptionally large in amount.

The cost of float was nominal in 2022, reflecting a small underwriting loss.

In 2021 and 2020, the cost of float was negative, reflecting underwriting earnings in each of those years.

Other energy businesses include electric transmission and distribution operations in Great Britain and Canada, a diversified portfolio of mostly renewable independent power projects and investments, and a liquefied natural gas export, import and storage facility.

AltaLink serves approximately 85% of Alberta’s population.

*Environmental Matters*

The U.S. Supreme Court held that the “generation shifting” approach in the Clean Power Plan exceeded the powers granted to the EPA by Congress, although the court did not address whether the EPA may only adopt measures applied at the individual source as it did in the Affordable Clean Energy rule.

The Biden administration plans to propose a replacement to the Clean Power Plan and Affordable Clean Energy rule by April 2023.

In November 2021, the EPA proposed rules that would reduce methane emissions from both new and existing sources in the oil and natural gas industry.

The proposals would expand and strengthen emission reduction requirements for new, modified and reconstructed oil and natural gas sources and would require states to reduce methane emissions from existing sources nationwide.

The EPA issued a supplemental proposal in November 2022 to further strengthen emission requirements and intends to finalize the rules by fall 2023.

PCC manufactures high-performance, nickel-based alloys, as well as titanium alloys and products.

Further, production delays in Boeing’s 737 MAX and 787 programs during this time also adversely impacted PCC over the past three years.

While commercial air travel increased in both the U.S. and international markets during 2022, traffic remains below pre-COVID-19 pandemic levels, especially for international routes.

Further recovery could be uneven, in the event of new COVID-19 variant developments and related travel restrictions, as well as from the changes in supply chain conditions, including the availability of workers.

Commercial aircraft delivery rates by OEMs of narrow-body aircraft have rebounded since the onset of the pandemic.

However, deliveries of wide-body aircraft remain relatively low, in part attributable to the pause in the Boeing 787 program, which resumed deliveries in the third quarter of 2022.

Long-term industry forecasts continue to show growth and strong demand for air travel and aerospace products.

In recent years, the COVID-19 pandemic, supply chain disruptions, severe weather and fires at certain Lubrizol facilities affected the availability of raw materials and fulfillment of customer orders and otherwise disrupted Lubrizol’s operations.

IMC International Metalworking Companies

In May 2022, EXSIF exited its Russia business, which resulted in the sale of approximately 7,300 intermodal tank containers.

Cranes are leased on either a fully operated and maintained service basis or on an equipment-only basis.

| --- | --- | --- |

GEICO’s written premiums in 2020 were reduced by the effects of the GEICO Giveback Program implemented in response to significant reductions in claim frequencies attributable to reduced policyholder driving during the initial stages of the COVID-19 pandemic.

Pandemic-related premium credit programs of other private passenger insurers may not have been reported as premium reductions, which impacts the industry data reported by A.M Best.

These various operations are discussed below.

BHRG’s underwriting operations in the U.S. are based in Stamford, Connecticut.

In each of the three years ending December 31, 2021, Berkshire’s consolidated cost of float was negative, as its insurance businesses produced net underwriting gains.

BHE’s locally managed businesses are organized as separate operating units.

BHE’s Great Britain electricity distribution subsidiaries serve about 3.9 million electricity end-users and its electricity transmission-only business in Alberta, Canada serves approximately 85% of Alberta’s population.

BHE’s interests also include a diversified portfolio of independent power projects, a liquefied natural gas export, import and storage facility, the largest residential real estate brokerage firm in the United States, and one of the largest residential real estate brokerage franchise networks in the United States.

BHE GT&S’s large underground natural gas storage assets and pipeline systems are part of an interconnected gas transmission network that provides transportation services to utilities and numerous other customers.

Renewable portfolio standards have been established by certain state governments and generally require electricity providers to obtain a minimum percentage of their power from renewable energy resources by a certain date.

Utah, Oregon, Washington, California, Iowa and Nevada have adopted renewable portfolio standards.

The Paris Agreement formally entered into force on November 4, 2016.

On October 10, 2017, the Environmental Protection Agency (“EPA”) issued a proposal to repeal the Clean Power Plan, which was intended to achieve an overall reduction in carbon dioxide emissions from existing fossil-fueled electric generating units of 32% below 2005 levels.

HomeServices of America, Inc. (“HomeServices”) is the largest residential real estate brokerage firm in the United States.

HomeServices’ franchise network currently includes approximately 360 franchisees primarily in the United States, and internationally in over 1,600 brokerage offices with over 53,000 real estate agents under two brand names.

Since the onset of the COVID-19 pandemic in 2020, delay requests increased, with delivery dates extending in some cases beyond 2021.

The grounding of the Boeing 737 MAX also adversely impacted 2020 and 2021 and quality issues with the Boeing 787 negatively impacted 2021.

Aircraft build rates have not recovered in any meaningful way.

During 2020, PCC significantly reduced its worldwide workforce by about 40% to help align operations to reduced aircraft build rates.

The restructuring actions taken began to improve margins in late 2020 and further margin improvements were achieved in 2021.

In 2021, the COVID-19 pandemic continued to have an adverse effect on many of the markets that Lubrizol serves, as did worldwide supply chain disruptions, affecting both the availability of raw materials and fulfillment of customer orders.

In addition, the occurrence and duration of the February 2021 winter storms and freezing temperatures in Texas significantly interrupted operations at Lubrizol’s manufacturing facilities.

Lubrizol also suffered a fire in 2021 that resulted in a total loss of its grease manufacturing facility.

The operation of chemical manufacturing plants entails ongoing environmental and other risks, and significant capital expenditures, costs or liabilities could be incurred in the future.

IMC

Business is conducted primarily in North and South America, Europe, Asia and Australia.

As of December 2021, off-site backlog was $1.4 billion, up 10% from the prior year.

Clayton’s financing programs utilize proprietary loan underwriting guidelines to evaluate loan applicants, which include ability to repay calculations, including debt to income limits, and incorporate residual income and credit score requirements.

Shaw manufactures and distributes carpet tile throughout Europe.

In the tufting process, yarn is inserted by multiple needles into a synthetic backing, forming loops, which may be cut or left uncut, depending on the desired texture or construction.

Raw materials are generally available in sufficient quantities from various sources for JM to maintain and expand its current production levels.

JM identifies and strives to mitigate risk with respect to material applicable laws and regulations, including environmental laws and regulations.

JM sees a marketplace trend in customer purchasing decisions being influenced by the sustainable and energy efficient attributes of its products, services and operations.

In July 2019, Benjamin Moore announced the expansion of its relationship with Ace Hardware (“Ace”), through which Benjamin Moore has become the preferred paint supplier for approximately 3,800 Ace stores, which are included in the count above.

In addition, Benjamin Moore operates an online “pick up in store” program, which allows consumers to place orders via an e-commerce site or, for national accounts and government agencies, via its customer information center.

These orders may be picked up at the customer’s nearest retailer or delivered.

For national accounts, drop-ship orders can be fulfilled by Benjamin Moore if a minimum gallon threshold is met.

In 2021, raw material supply constraints and increased customer demand for products prevailed and disrupted Benjamin Moore’s ability to build inventory.

A major winter storm that impacted the Gulf Coast region of the United States in February of 2021 caused substantial supply chain disruptions for Benjamin Moore, which contributed to significant inflation in manufacturing costs.

We [added: currently] believe that any liability that may arise as a result of other pending legal actions will not have a material effect on our consolidated financial condition or results of operations.

K-29

[removed: UNITED STATES][added: UNITED STATES]

[removed: SECURITIES] [added: SECURITIES] AND EXCHANGE [removed: COMMISSION][added: COMMISSION]

[removed: Washington,] [added: Washington,] D.C. [removed: 20549][added: 20549]

[removed: FORM 10-K][added: FORM 10-K]

| [removed: ☑] [added: ☑] | [removed: ANNUAL] [added: ANNUAL] REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF [removed: 1934] [added: 1934] |

For the fiscal year ended December 31, [removed: 2021][added: 2022]

| [removed: ☐] [added: ☐] | [removed: TRANSITION] [added: TRANSITION] REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF [removed: 1934] [added: 1934] |

[removed: BERKSHIRE] [added: BERKSHIRE] HATHAWAY [removed: INC.][added: INC.]

[removed: (Exact] [added: (Exact] name of Registrant as specified in its [removed: charter)][added: charter)]

[removed: Securities] [added: Securities] registered pursuant to Section 12(b) of the [removed: Act:][added: Act:]

| [removed: Title] [added: Title] of each [removed: class] [added: class] | | [removed: Trading Symbols] [added: Trading Symbols] | | [removed: Name] [added: Name] of each exchange on which [removed: registered] [added: registered] |

| Class A Common Stock Class B Common Stock 0.750% Senior Notes due 2023 [removed: 1.125%] [added: 1.300%] Senior Notes due [removed: 2027 1.625%] [added: 2024 0.000%] Senior Notes due [removed: 2035 1.300%] [added: 2025 1.125%] Senior Notes due [removed: 2024] [added: 2027] 2.150% Senior Notes due 2028 [removed: 0.625%] [added: 1.500%] Senior Notes due [removed: 2023 0.000%] [added: 2030 2.000%] Senior Notes due [removed: 2025] [added: 2034 1.625% Senior Notes due 2035] 2.375% Senior Notes due 2039 0.500% Senior Notes due 2041 2.625% Senior Notes due 2059 | | BRK.A BRK.B BRK23 [removed: BRK27 BRK35] BRK24 [removed: BRK28 BRK23A] BRK25 [added: BRK27 BRK28 BRK30 BRK34 BRK35] BRK39 BRK41 BRK59 | | New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange [added: New York Stock Exchange] |

[removed: Securities] [added: Securities] registered pursuant to Section 12(g) of the Act: [removed: NONE][added: NONE]

[removed: Large accelerated filer ☑ Accelerated filer ☐] Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

State the aggregate market value of the voting stock held by non-affiliates of the Registrant as of June 30, [removed: 2021: $503,600,000,000*][added: 2022: $500,000,000,000]

| February [removed: 14, 2022—Class] [added: 13, 2023—Class] A common stock, $5 par value | [removed: 615,333] [added: 590,835] shares |

| February [removed: 14, 2022—Class] [added: 13, 2023—Class] B common stock, $0.0033 par value | [removed: 1,291,212,661] [added: 1,301,100,243] shares |

[removed: DOCUMENTS] [added: DOCUMENTS] INCORPORATED BY [removed: REFERENCE][added: REFERENCE]

Portions of the Proxy Statement for the Registrant’s Annual Meeting to be held [removed: April 30, 2022] [added: May 6, 2023] are incorporated in Part III.

[removed: Table] [added: Table] of [removed: Contents][added: Contents]

| | | [removed: Page No.] [added: Page No.] |

| [removed: [Part I](#PART_I)] [added: [Part I](#part_i)] | | |

| [removed: Item 1.] [added: Item 1.] | [removed: [Business Description](#ITEM_1_BUSINESS_DESCRIPTION)] [added: [Business Description](#item_1_business_description)] | K-1 |

| [removed: Item 1A.] [added: Item 1A.] | [removed: [Risk Factors](#ITEM_1A_RISK_FACTORS)] [added: [Risk Factors](#item_1a_risk_factors)] | [removed: K-24] [added: K-25] |

| [removed: Item 1B.] [added: Item 1B.] | [removed: [Unresolved] [added: [Unresolved] Staff [removed: Comments](#ITEM_1B_UNRESOLVED_STAFF_COMMENTS)] [added: Comments](#item_1b_unresolved_staff_comments)] | [removed: K-27] [added: K-28] |

| [removed: Item 2.] [added: Item 2.] | [removed: [Description] [added: [Description] of [removed: Properties](#ITEM_2_DESCRIPTION_PROPERTIES)] [added: Properties](#item_2_description_properties)] | [removed: K-27] [added: K-28] |

| [removed: Item 3.] [added: Item 3.] | [removed: [Legal Proceedings](#ITEM_3_LEGAL_PROCEEDINGS)] [added: [Legal Proceedings](#item_3_legal_proceedings)] | [removed: K-29] [added: K-30] |

| [removed: Item 4.] [added: Item 4.] | [removed: [Mine] [added: [Mine] Safety [removed: Disclosures](#ITEM_4_MINE_SAFETY_DISCLOSURES)] [added: Disclosures](#item_4_mine_safety_disclosures)] | K-30 |

| [removed: [Part II](#PART_II)] [added: [Part II](#part_ii)] | | |

| [removed: Item 5.] [added: Item 5.] | [removed: [Market] [added: [Market] for Registrant’s Common Equity, Related Security Holder Matters and Issuer Purchases of Equity [removed: Securities](#ITEM_5_MARKET_FOR_REGISTRANTS_COMMON_EQU)] [added: Securities](#item_5_market_for_registrants_common_equ)] | [removed: K-30] [added: K-31] |

| [removed: Item 6.] [added: Item 6.] | [removed: \[Reserved\]] [added: [\[Reserved\]](#item_6_reserved)] | [added: K-32] |

| [removed: Item 7.] [added: Item 7.] | [removed: [Management’s] [added: [Management’s] Discussion and Analysis of Financial Condition and Results of [removed: Operations](#ITEM_7_MANAGEMENTS_DISCUSSION_ANALYSIS_F)] [added: Operations](#item_7_managements_discussion_analysis_f)] | [removed: K-32] [added: K-33] |

| [removed: Item 7A.] [added: Item 7A.] | [removed: [Quantitative] [added: [Quantitative] and Qualitative Disclosures About Market [removed: Risk](#ITEM_7A_QUANTITATIVE_QUALITATIVE_DISCLOS)] [added: Risk](#item_7a_quantitative_qualitative_disclos)] | K-66 |

| [removed: Item 8.] [added: Item 8.] | [removed: [Financial] [added: [Financial] Statements and Supplementary [removed: Data](#ITEM_8_FINANCIAL_STATEMENTS_SUPPLEMENTAR)] [added: Data](#item_8_financial_statements_supplementar)] | K-67 |

| | [Consolidated Balance Sheets— December 31, [removed: 2021] [added: 2022] and December 31, [removed: 2020](#CONSOLIDATED_BALANCE_SHEETS)] [added: 2021](#consolidated_balance_sheets)] | K-70 |

| | [Consolidated Statements of [removed: Earnings— Years] [added: Earnings—](#consolidated_statements_earnings) [Years] Ended December 31, [removed: 2021,] [added: 2022,] December 31, [removed: 2020,] [added: 2021,] and December 31, [removed: 2019](#CONSOLIDATED_STATEMENTS_EARNINGS)] [added: 2020](#consolidated_statements_earnings)] | K-72 |

| | [Consolidated Statements of Comprehensive [removed: Income— Years] [added: Income—](#consolidated_statements_comprehensive_in) [Years] Ended December 31, [removed: 2021,] [added: 2022,] December 31, [removed: 2020,] [added: 2021,] and December 31, [removed: 2019](#CONSOLIDATED_STATEMENTS_COMPREHENSIVE_IN)] [added: 2020](#consolidated_statements_comprehensive_in)] | K-73 |

| | [Consolidated Statements of Changes in Shareholders’ [removed: Equity— Years] [added: Equity—](#consolidated_statements_changes_in_share) [Years] Ended December 31, [removed: 2021,] [added: 2022,] December 31, [removed: 2020,] [added: 2021,] and December 31, [removed: 2019](#CONSOLIDATED_STATEMENTS_CHANGES_IN_SHARE)] [added: 2020](#consolidated_statements_changes_in_share)] | K-73 |

| | [Consolidated Statements of Cash [removed: Flows— Years] [added: Flows—](#consolidated_statements_cash_flows) [Years] Ended December 31, [removed: 2021,] [added: 2022,] December 31, [removed: 2020,] [added: 2021,] and December 31, [removed: 2019](#CONSOLIDATED_STATEMENTS_CASH_FLOWS)] [added: 2020](#consolidated_statements_cash_flows)] | K-74 |

| [removed: Item 9.] [added: Item 9.] | [removed: [Changes] [added: [Changes] in and Disagreements with Accountants on Accounting and Financial [removed: Disclosure](#ITEM_9_CHANGES_IN_DISAGREEMENTS_WITH_ACC)] [added: Disclosure](#item_9_changes_in_disagreements_with_acc)] | [removed: K-113] [added: K-114] |

| | |

| | | | | |

Large accelerated filer ☑ Accelerated filer ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).

| | |

| | | |

| [Signatures](#signatures) | | K-120 |

Part I

| --- | --- |

| * | This aggregate value is computed at the last sale price of the common stock as reported on the New York Stock Exchange on June 30, 2021. It does not include the value of Class A common stock and Class B common stock held by Directors and Executive Officers of the Registrant and members of their immediate families, some of whom may not constitute “affiliates” for purpose of the Securities Exchange Act of 1934. |

| [Signatures](#SIGNATURES) | | K-119 |

Part I

[removed: Railroad] [added: Railroad] Business—Burlington Northern Santa [removed: Fe][added: Fe]

As of December 31, [removed: 2021,] [added: 2022,] the total BNSF Railway system, including single and multiple main tracks, yard tracks and sidings, consisted of over 50,000 operated miles of track.

BNSF owns or holds under non-cancelable leases exceeding one year approximately 7,500 locomotives and [removed: 63,600] [added: 68,000] freight cars, in addition to maintenance of way and other equipment.

In [removed: 2021,] [added: 2022,] BNSF recorded approximately $2 billion in repairs and maintenance expense.

BHE or its affiliates own or have interests in the following types of operating electric generating facilities at December 31, [removed: 2021:][added: 2022:]

| [removed: Energy Source] [added: Energy Source] | | [removed: Entity] [added: Entity] | | [removed: Location] [added: Location] by [removed: Significance] [added: Significance] | | [removed: Facility] [added: Facility] Net Capacity [removed: (MW) (1)] [added: (MW) (1)] | | | | [removed: Net] [added: Net] Owned Capacity [removed: (MW) (1)] [added: (MW) (1)] | | |

| Wind | | PacifiCorp, [removed: MEC] [added: MEC, BHE Canada, BHE Montana] and BHE Renewables | | Iowa, Wyoming, Texas, [added: Montana,] Nebraska, Washington, California, Illinois, [removed: Montana,] [added: Canada,] Oregon and Kansas | | | [removed: 11,517] [added: 12,282] | | | | [removed: 11,517] [added: 12,282] | |

| Natural gas | | PacifiCorp, MEC, NV Energy, BHE [removed: Renewables] [added: Canada] and BHE [removed: Canada] [added: Renewables] | | Nevada, Utah, Iowa, Illinois, Washington, Wyoming, Oregon, Texas, New York, Arizona and Canada | | | [removed: 11,112] [added: 11,284] | | | | [removed: 10,833] [added: 11,005] | |

| Coal | | PacifiCorp, MEC and NV Energy | | Wyoming, Iowa, Utah, Nevada, Colorado and Montana | | | [removed: 13,235] [added: 13,210] | | | | [removed: 8,193] [added: 8,178] | |

| Solar | | [added: MEC, NV Energy, Northern Powergrid and] BHE Renewables [removed: and NV Energy] | | California, [added: Australia,] Texas, Arizona, [added: Iowa,] Minnesota and Nevada | | | [removed: 1,719] [added: 2,120] | | | | [removed: 1,571] [added: 1,972] | |

| Hydroelectric | | PacifiCorp, MEC and BHE Renewables | | Washington, Oregon, Idaho, [removed: California,] Utah, Hawaii, Montana, [removed: Illinois] [added: Illinois, California] and Wyoming | | | [removed: 1,149] [added: 985] | | | | [removed: 1,149] [added: 985] | |

| Nuclear | | MEC | | Illinois | | | [removed: 1,823] [added: 1,822] | | | | [removed: 456] [added: 455] | |

[removed: | *(1)* | Facility] [added: *Facility] Net Capacity in megawatts (MW) represents the lesser of nominal ratings or any limitations under applicable interconnection, power purchase, or other agreements for intermittent resources and the total net dependable capability available during summer conditions for all other units. [removed: An intermittent resource’s nominal rating is the manufacturer’s contractually specified capability (in MW) under specified conditions. Net Owned Capacity indicates BHE’s ownership of Facility Net Capacity. |]

As of December 31, [removed: 2021,] [added: 2022,] BHE’s subsidiaries also have electric generating facilities that are under construction in [removed: Nevada, Iowa] [added: Nevada] and [removed: Canada] [added: Wyoming] having total Facility Net Capacity and Net Owned Capacity of [removed: 421] [added: 243] MW.

PacifiCorp, MEC and NV Energy own electric transmission and distribution systems, including approximately [removed: 27,700] [added: 27,800] miles of transmission lines and approximately [removed: 1,660 substations] [added: 1,670 substations,] and gas distribution facilities, including approximately [removed: 27,700] [added: 28,200] miles of gas mains and service lines.

Northern Powergrid (Northeast) and Northern Powergrid (Yorkshire) operate an electricity distribution network that includes approximately [removed: 17,400] [added: 17,040] miles of overhead lines, approximately [removed: 43,300] [added: 43,400] miles of underground cables and approximately [removed: 780] [added: 810] major substations.

AltaLink’s electricity transmission system includes approximately [removed: 8,200] [added: 8,300] miles of transmission lines and approximately 310 substations.

BHE GT&S also operates, as the general partner, and owns a 25% limited partnership interest in one liquefied natural gas export, import and storage facility in Maryland and operates and has ownership interests in three [removed: modular] [added: smaller] liquefied natural gas facilities in Alabama, Florida and Pennsylvania.

Northern Natural’s pipeline system consists of approximately [removed: 14,300] [added: 14,400] miles of natural gas pipelines, including approximately [removed: 5,800] [added: 5,900] miles of mainline transmission pipelines and approximately 8,500 miles of branch and lateral pipelines.

[removed: Other Segments][added: Other Segments]

| | | | | | | | | [removed: Number] [added: Number] of [removed: Properties] [added: Properties] | | | | | | |

| [removed: Business] [added: Business] | | [removed: Country] [added: Country] | | [removed: Locations] [added: Locations] | | [removed: Property/Facility type] [added: Property/Facility type] | | [removed: Owned] [added: Owned] | | | | [removed: Leased] [added: Leased] | | |

| GEICO | | U.S. | | | | Offices and claims centers | | | 10 | | | | [removed: 113] [added: 107] | |

| BHRG | | U.S. | | | | Offices | | | 1 | | | | [removed: 27] [added: 34] | |

| | | Non-U.S. | | Locations in [removed: 23] [added: 26] countries | | Offices | | | 1 | | | | [removed: 37] [added: 51] | |

| BH Primary | | U.S. | | | | Offices | | | 5 | | | | [removed: 48] [added: 52] | |

| Manufacturing | | U.S. | | | | Manufacturing facility | | | [removed: 484] [added: 513] | | | | [removed: 113] [added: 114] | |

| | | | | | | [removed: Retail/Showroom] [added: Leasing/Showroom/Retail] | | | [removed: 231] [added: 34] | | | | [removed: 195] [added: 40] | |

| | | | | | | Housing subdivisions | | | [removed: 319] [added: 322] | | | | — | |

| | | Non-U.S. | | Locations in 63 countries | | Manufacturing facility | | | [removed: 179] [added: 176] | | | | [removed: 111] [added: 107] | |

| | | | | | | Retail/Showroom | | | [removed: —] [added: 230] | | | | [removed: 4] [added: 205] | |

| Service | | U.S. | | | | Training facilities/Hangars | | | [removed: 12] [added: 11] | | | | [removed: 93] [added: 88] | |

| | | | | | | Offices/Distribution | | | [removed: 15] [added: —] | | | | [removed: 135] [added: 39] | |

| | | | | | | Production facilities | | | 4 | | | | [removed: 3] [added: 4] | |

| | | | | | | [removed: Leasing/Showroom/Retail] [added: Retail/Showroom] | | | [removed: 31] [added: 141] | | | | [removed: 49] [added: 466] | |

| | | Non-U.S. | | Locations in [removed: 19] [added: 18] countries | | Training facilities/Hangars | | | 1 | | | | [removed: 12] [added: 16] | |

| | | | | | | Offices/Distribution | | | [removed: —] [added: 16] | | | | [removed: 47] [added: 136] | |

| McLane | | U.S. | | | | Distribution [removed: centers] [added: centers/Offices] | | | [removed: 59] [added: 63] | | | | [removed: 27] [added: 28] | |

| | | Non-U.S. | | Locations in 6 countries | | [removed: Offices/Warehouses] [added: Retail/Offices/Warehouses] | | | 1 | | | | [removed: 7] [added: 95] | |

| | | | | | | | | | | | | |

| | | | | Total | | | 42,080 | | | | 35,254 | |

*(1)*

An intermittent resource’s nominal rating is the manufacturer’s contractually specified capability (in MW) under specified conditions.

Net Owned Capacity indicates BHE’s ownership of Facility Net Capacity.*

K-29

| | | | | | | Offices/Warehouses | | | 225 | | | | 472 | |

| | | | | | | Offices/Warehouses | | | 109 | | | | 465 | |

| | | | | | | | | | | | | | | |

K-27

| | | | | Total | | | 40,932 | | | | 34,096 | |

| --- | --- |

| | | | | | | Offices/Warehouses | | | 214 | | | | 476 | |

| | | | | | | Offices/Warehouses | | | 106 | | | | 437 | |

| | | | | | | Offices | | | 4 | | | | 1 | |

| | | | | | | Retail/Showroom | | | 139 | | | | 498 | |

| | | | | | | Retail/Offices | | | — | | | | 91 | |

[removed: Executive] [added: Executive] Officers of the [removed: Registrant][added: Registrant]

| [removed: Name] [added: Name] | | [removed: Age] [added: Age] | | [removed: Position] [added: Position] with [removed: Registrant] [added: Registrant] | | [removed: Since] [added: Since] |

| Warren E. Buffett | | [removed: 91] [added: 92] | | Chairman and Chief Executive Officer | | 1970 |

| Charles T. Munger | | [removed: 98] [added: 99] | | Vice Chairman | | 1978 |

| Gregory E. Abel | | [removed: 59] [added: 60] | | Vice Chairman – Non-Insurance Operations | | 2018 |

| Ajit Jain | | [removed: 70] [added: 71] | | Vice Chairman – Insurance Operations | | 2018 |

| Marc D. Hamburg | | [removed: 72] [added: 73] | | Senior Vice-President – Chief Financial Officer | | 1992 |

[removed: FORWARD-LOOKING STATEMENTS][added: FORWARD-LOOKING STATEMENTS]

The principal risk factors that could cause our actual performance and future events and actions to differ materially from such forward-looking statements include, but are not limited to, changes in market prices of our investments in fixed maturity and equity securities; losses realized from derivative contracts; the occurrence of one or more catastrophic events, such as an earthquake, hurricane, act of terrorism or cyber-attack that causes losses insured by our insurance subsidiaries and/or losses to our business operations; the frequency and severity of epidemics, pandemics or other outbreaks, [removed: including COVID-19,] that negatively affect our operating results and restrict our access to borrowed funds through the capital markets at reasonable rates; changes in laws or regulations affecting our insurance, railroad, utilities and energy and finance subsidiaries; changes in federal income tax laws; and changes in general economic and market factors that affect the prices of securities or the industries in which we do business.

[removed: Part II][added: Part II]

K-30

| | | | | | | |

[removed: Market Information][added: Market Information]

[removed: Shareholders][added: Shareholders]

Berkshire had approximately [removed: 1,400] [added: 1,300] record holders of its Class A common stock and [removed: 18,400] [added: 18,700] record holders of its Class B common stock at February [removed: 15, 2022.][added: 13, 2023.]

Record owners included nominees holding at least [removed: 346,000] [added: 334,000] shares of Class A common stock and [removed: 1,287,000,000] [added: 1,297,000,000] shares of Class B common stock on behalf of beneficial-but-not-of-record owners.

[removed: Dividends][added: Dividends]

Information with respect to Berkshire’s Class A and Class B common stock repurchased during the fourth quarter of [removed: 2021] [added: 2022] follows.

| [removed: Period] [added: Period] | [removed: Total] [added: | Total] number of shares [removed: purchased] [added: purchased] | | | [removed: Average] [added: Average] price paid per [removed: share] [added: share] | | | [removed: Total] [added: Total] number of shares purchased as part of publicly announced [removed: program] [added: program] | | | [removed: Maximum] [added: Maximum] number or value of shares that yet may be repurchased under the [removed: program] [added: program] |

| October | | | | | | | | | | | [added: |]

| Class [removed: A] [added: B] common stock | | [removed: 680] | [added: —] | [added: |] $ | [removed: 431,525.72] [added: —] | | | [removed: 680] [added: —] | | * |

| Class B common stock | | [removed: 5,862,551] | [added: —] | [added: |] $ | [removed: 282.86] [added: —] | | | [removed: 5,862,551] [added: —] | | * |

| November | | | | | | | | | | | [added: |]

| December | | | | | | | | | | | [added: |]

[removed: | * | The program does not specify a maximum number of shares to be repurchased or obligate] Berkshire [removed: to repurchase any specific dollar amount or number of Class A or Class B shares and there is no expiration date to the repurchase program. Berkshire] will not repurchase its common stock if the repurchases reduce the total value of Berkshire’s consolidated cash, cash equivalents and U.S. Treasury Bills holdings to less than $30 [removed: billion. |][added: billion.*]

[removed: Stock] [added: Stock] Performance [removed: Graph][added: Graph]

The following chart compares the subsequent value of $100 invested in Berkshire common stock on December 31, [removed: 2016] [added: 2017] with a similar investment in the Standard & Poor’s 500 Stock Index and in the Standard & Poor’s Property – Casualty Insurance Index.

[removed: ][added: ]

[removed: | * |] Cumulative return for the Standard & Poor’s indices based on reinvestment of [removed: dividends. |][added: dividends.*]

[removed: | | It would be difficult to develop a peer group of companies similar to Berkshire.] The Corporation owns subsidiaries engaged in a number of diverse business activities of which [removed: the most] [added: an] important [added: component] is the property and casualty insurance [removed: business and, accordingly, management has used the Standard & Poor’s Property—Casualty Insurance Index for comparative purposes. |][added: business.]

| | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Class A common stock | | | 1,550 | | $ | 426,592.77 | | | 1,550 | | * |

| Class A common stock | | | 2,146 | | $ | 463,584.86 | | | 2,146 | | * |

| Class A common stock | | | 584 | | $ | 468,113.93 | | | 584 | | * |

| Class B common stock | | | 3,046,794 | | $ | 303.83 | | | 3,046,794 | | * |

The program does not specify a maximum number of shares to be repurchased or obligate Berkshire to repurchase any specific dollar amount or number of Class A or Class B shares and there is no expiration date to the repurchase program.

* It would be difficult to develop a peer group of companies similar to Berkshire.

Accordingly, management has used the Standard & Poor’s Property—Casualty Insurance Index for comparative purposes.*

K-30

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Class A common stock | | 403 | | $ | 430,172.46 | | | 403 | | * |

| Class B common stock | | 7,013,482 | | $ | 284.39 | | | 7,013,482 | | * |

| Class A common stock | | 1,828 | | $ | 439,625.92 | | | 1,828 | | * |

| Class B common stock | | 6,259,164 | | $ | 287.62 | | | 6,259,164 | | * |

| --- | --- |

K-32

[removed: REPORT] [added: REPORT] OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM [added: (Continued)]

[removed: Berkshire Hathaway Inc.][added: BERKSHIRE HATHAWAY INC.]

[removed: Opinions] [added: Opinions] on the Financial Statements and Internal Control over Financial [removed: Reporting][added: Reporting]

We have audited the accompanying consolidated balance sheets of Berkshire Hathaway Inc. and subsidiaries (the “Company”) as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] the related consolidated statements of earnings, comprehensive income, changes in shareholders’ equity, and cash flows, for each of the three years in the period ended December 31, [removed: 2021,] [added: 2022,] and the related notes (collectively referred to as the “financial statements”).

We also have audited the Company’s internal control over financial reporting as of December 31, [removed: 2021,] [added: 2022,] based on criteria established in [removed: *Internal] [added: Internal] Control — Integrated Framework [removed: (2013)*] [added: (2013)] issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2021,] [added: 2022,] in conformity with accounting principles generally accepted in the United States of America.

Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2021,] [added: 2022,] based on criteria established in [removed: *Internal] [added: Internal] Control — Integrated Framework [removed: (2013)*] [added: (2013)] issued by COSO.

[removed: Basis] [added: Basis] for [removed: Opinions][added: Opinions]

[removed: Definition] [added: Definition] and Limitations of Internal Control over Financial [removed: Reporting][added: Reporting]

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING [removed: FIRM (Continued)][added: FIRM (Continued)]

[removed: Critical] [added: Critical] Audit [removed: Matters][added: Matters]

[removed: Unpaid] [added: Unpaid] Losses and Loss Adjustment Expenses— Refer to Notes 1 and 16 to the financial [removed: statements][added: statements]

[removed: Critical] [added: *Critical] Audit Matter [removed: Description][added: Description*]

The Company’s unpaid losses and loss adjustment expenses (“claim liabilities”) under short duration property and casualty insurance and reinsurance contracts are [removed: $86,664] [added: $107,472] million as of December 31, [removed: 2021.][added: 2022.]

The key assumptions affecting certain claim liabilities include expected loss and expense (“loss”) ratios, expected claim count emergence patterns, expected loss payment emergence [removed: patterns] [added: patterns,] and expected loss reporting emergence patterns.

Given the subjectivity of estimating these key assumptions, performing audit procedures to evaluate whether claim liabilities were appropriately recorded as of December 31, [removed: 2021,] [added: 2022,] required a high degree of auditor judgment and an increased extent of effort, including the need to involve our actuarial specialists.

[removed: How] [added: *How] the Critical Audit Matter Was Addressed in the [removed: Audit][added: Audit*]

[removed: | • |] We tested the operating effectiveness of controls over claim liabilities, including those over the key assumptions. [removed: |]

[removed: | • |] We evaluated the methods and assumptions used by management to estimate the claim liabilities by: [removed: |]

[removed: | | • |] Testing the underlying data that served as the basis for the actuarial analysis, such as historical claims and earned premium, to test that the inputs to the actuarial estimate were reasonable. [removed: |]

[removed: | | • |] Comparing management’s prior-year claim liabilities to actual development during the current year to identify potential bias in the determination of the claim liabilities. [removed: |]

[removed: | • |] With the assistance of our actuarial specialists: [removed: |]

[removed: | | • |] We developed independent estimates of the claim liabilities, including loss data and industry claim development factors as needed, and compared our estimates to management’s estimates. [removed: |]

[removed: | | • |] We compared management’s change in ultimate loss and loss adjustment expense to prior year estimates to test the reasonableness of the prior year estimates and assessed unexpected development. [removed: |]

[removed: Unpaid] [added: Unpaid] Losses and Loss Adjustment Expenses Under Retroactive Reinsurance Contracts — Refer to Notes 1 and 17 to the financial [removed: statements][added: statements]

The Company’s unpaid losses and loss adjustment expenses (“claim liabilities”) for property and casualty retroactive reinsurance contracts are [removed: $38,256] [added: $35,415] million as of December 31, [removed: 2021.][added: 2022.]

The key assumptions affecting certain claim liabilities and related deferred charge reinsurance assumed assets (“related assets”) include expected loss and expense (“loss”) ratios, expected loss payment emergence [removed: patterns] [added: patterns,] and expected loss reporting emergence.

[removed: | • |] We tested the operating effectiveness of controls over claim liabilities and related assets, including those over the key assumptions. [removed: |]

[removed: | • |] We evaluated the methods and assumptions used by management to estimate the claim liabilities and related assets by: [removed: |]

[removed: | | • |] Testing the underlying data that served as the basis for the actuarial analysis, including historical claims, to test that the inputs to the actuarial estimate were reasonable. [removed: |]

[removed: | | • |] Comparing management’s prior-year claim liabilities to actual development during the current year to identify potential bias in the determination of the claim liabilities and related assets. [removed: |]

[removed: | | • | We developed independent claim liability estimates for certain retroactive reinsurance contracts and compared our estimates to management’s estimates.] For other retroactive reinsurance contracts and related assets, we evaluated the process used by management to develop the estimated claim liabilities and related assets. [removed: |]

[removed: | | • |] We compared management’s change in ultimate loss and loss adjustment expense to prior year estimates, assessed unexpected development and assessed internal rates of return. [removed: |]

[removed: Goodwill] [added: Goodwill] and Indefinite-Lived Intangible Assets — Refer to Notes 1 and 13 to the financial [removed: statements][added: statements]

The Precision Castparts Corp. (“PCC”) reporting unit reported approximately [removed: $21] [added: $8] billion of goodwill and [added: approximately $13 billion of] indefinite-lived intangible assets as of December 31, [removed: 2021.][added: 2022.]

[removed: | | • |] We tested the effectiveness of controls over goodwill and indefinite-lived intangible assets, including those over the forecasts of future revenue and EBIT and the selection of the discount rate. [removed: |]

[removed: | | • |] We evaluated management’s ability to accurately forecast future revenue and EBIT by comparing prior year forecasts to actual results in the respective years. [removed: |]

[removed: | | • |] We evaluated the reasonableness of management’s current revenue and EBIT forecasts by comparing the forecasts to historical [removed: results] [added: results, newly executed long-term contracts, customer demand] and [added: build schedules,] forecasted information included in analyst and industry reports and certain peer companies’ disclosures. [removed: |]

[removed: | | • |] With the assistance of our fair value specialists, we evaluated the valuation methodologies, the [removed: long-term] [added: terminal] growth rates and discount rate, including testing the underlying source information and the mathematical accuracy of the calculations, and developed a range of independent estimates and compared those to the [removed: long-term] [added: terminal] growth rates and discount rate selected by management. [removed: |]

[removed: February 26, 2022][added: | | 2022 | | | | 2022 | | |]

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

*Critical Audit Matter Description*

Given the subjectivity of estimating these key assumptions, performing audit procedures to evaluate whether claim liabilities were appropriately recorded as of December 31, 2022, required a high degree of auditor judgment and an increased extent of effort, including the need to involve our actuarial specialists.

*How the Critical Audit Matter Was Addressed in the Audit*

With the assistance of our actuarial specialists:

We developed independent claim liability estimates for certain retroactive reinsurance contracts and compared our estimates to management’s estimates.

*Critical Audit Matter Description*

*How the Critical Audit Matter Was Addressed in the Audit*

February 25, 2023

CONSOLIDATED BALANCE SHEETS

| | | | | | | | | |

| | | | 725,989 | | | | 741,993 | |

| Other | | | 22,190 | | | | 23,498 | |

| | | | 222,463 | | | | 216,791 | |

| | | $ | 948,452 | | | $ | 958,784 | |

and Subsidiaries

*(dollars in millions)*

| | | | | | | | | |

| | | 2022 | | | | 2021 | | |

| | | | 290,625 | | | | 255,711 | |

| | | | 100,190 | | | | 97,900 | |

| | | $ | 948,452 | | | $ | 958,784 | |

*See accompanying Notes to Consolidated Financial Statements*

BERKSHIRE HATHAWAY INC.

and Subsidiaries

| | | | 52,149 | | | | 48,229 | | | | 41,833 | |

| Total revenues | | | 302,089 | | | | 276,203 | | | | 245,579 | |

| Insurance and Other: | | | | | | | | | | | | |

| Equity method earnings | | | 1,863 | | | | 886 | | | | 657 | |

* *Class B shares are economically equivalent to* *one-fifteen-hundredth* *of a Class A share.

See Note 21.*

*See accompanying Notes to Consolidated Financial Statements*

BERKSHIRE HATHAWAY INC.

and Subsidiaries

*(dollars in millions)*

| | | Year Ended December 31, | | | | | | | | | | |

| Unrealized gains (losses) on investments | | | (713 | ) | | | (217 | ) | | | 74 | |

BERKSHIRE HATHAWAY INC.

and Subsidiaries

*(dollars in millions)*

| --- | --- |

| --- | --- | --- |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | 743,323 | | | | 664,021 | |

| Other | | | 22,168 | | | | 21,621 | |

| | | | 215,461 | | | | 209,708 | |

| | | | 255,711 | | | | 250,223 | |

| | | | 97,900 | | | | 98,072 | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | 48,120 | | | | 41,764 | | | | 43,453 | |

| Total revenues | | | 276,094 | | | | 245,510 | | | | 254,616 | |

| Equity method earnings | | | 995 | | | | 726 | | | | 1,176 | |

| Unrealized appreciation of fixed maturity securities | | | (217 | ) | | | 74 | | | | 142 | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Balance December 31, 2018 | | $ | 35,715 | | | $ | (5,015 | ) | | $ | 321,112 | | | $ | (3,109 | ) | | $ | 3,797 | | | $ | 352,500 | |

| Net earnings | | | — | | | | — | | | | 81,417 | | | | — | | | | 375 | | | | 81,792 | |

| Other, including asset impairment charges | | | (3,397 | ) | | | 11,263 | | | | (1,254 | ) |

| Other assets | | | (1,686 | ) | | | (1,109 | ) | | | (2,011 | ) |

| Other liabilities | | | 2,389 | | | | 3,376 | | | | 190 | |

| Other | | | 297 | | | | (3,582 | ) | | | (1,496 | ) |

The novel coronavirus (“COVID-19”) spread rapidly across the world in 2020 and was declared a pandemic by the World Health Organization.

The government and private sector responses to contain its spread began to significantly affect our operating businesses in March of 2020.

The COVID-19 pandemic adversely affected nearly all of our operations during 2020, although the effects varied significantly.

Prior to 2020, credit losses were measured when non-collection was considered probable based on the prevailing facts and circumstances.

Prior to 2020, we recorded provisions for uncollectible balances when it was probable counterparties or customers would be unable to pay all amounts due based on the contractual terms and historical loss history.

Beginning in 2020, we adopted a new accounting pronouncement that affects the measurement of allowances for credit losses.

We record acquisitions of and additions to equipment that we lease to others at cost.

We compute liabilities for benefits under life insurance contracts based upon estimated future investment yields, expected mortality, morbidity and lapse or withdrawal rates, as well as estimates of premiums we expect to receive and expenses we expect to incur in the future.

We adopted Accounting Standards Codification (“ASC”) 326 “Financial Instruments-Credit Losses” on January 1, 2020.

Prior to the adoption of ASC 326, credit losses were measured when non-collection was considered probable.

Berkshire adopted ASC 842 “Leases” on January 1, 2019 with respect to contracts in effect as of the adoption and elected to not restate prior period financial statements.

Most significantly, ASC 842 requires a lessee to recognize a liability to make operating lease payments and an asset with respect to its right to use the underlying asset for the lease term.

Upon adoption, we recorded operating lease right-of-use assets of approximately $6.2 billion, lease liabilities of $5.9 billion and reduced other assets by approximately $300 million.

| | *(y)* | New accounting pronouncements to be adopted subsequent to December 31, 2021 |

ASU 2018-12 is to be applied retrospectively to the earliest period presented in the financial statements, requires new disclosures and is effective for fiscal years beginning after December 15, 2022, with early adoption permitted.

We currently intend to adopt ASU 2018-12 as of January 1, 2023 using the modified retrospective method, which provides that the revised cash flow and discount rate assumptions as of January 1, 2021 (the transition date) be applied to contracts then in-force, with liabilities then remeasured as provided under the standard.

While we have not finalized our assessment of the impact of the adoption as of the transition date, we currently believe that the changes in discount rate assumptions will have a greater effect on our recorded liabilities than changes in cash flow assumptions.

We also preliminarily estimate that the changes in discount rate assumptions as of January 1, 2021 will increase our life, health and annuity benefit liabilities from the amounts previously reported due to the historically low interest rate environment at that time.

However, the ultimate impact of adopting ASU 2018-12 will be based on the discount rate and cash flow assumptions determined as of the January 1, 2023 adoption date.

We, therefore, continue to evaluate the effect this standard will have on our Consolidated Financial Statements.

There has been no change in the Corporation’s internal control over financial reporting during the quarter ended December 31, [removed: 2021] [added: 2022] that has materially affected, or is reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

[removed: Part III][added: Part III]

Except for the information set forth under the caption “Executive Officers of the Registrant” in Part I hereof, information required by this Part (Items 10, 11, 12, 13 and 14) is incorporated by reference from the Registrant’s definitive proxy statement, filed pursuant to Regulation 14A, for the Annual Meeting of Shareholders of the Registrant to be held on [removed: April 30, 2022,] [added: May 6, 2023,] which [removed: meeting] will involve the election of directors.

[removed: Part IV][added: Part IV]

| | [removed: | PAGE] [added: PAGE] |

| [Report of Independent Registered Public Accounting [removed: Firm](#REPORT_INDEPENDENT_REGISTERED_PUBLIC_ACC)] [added: Firm](#report_independent_registered_public_acc)] (PCAOB ID No. 34) | [removed: |] K-67 |

| [Consolidated Balance [removed: Sheets— December] [added: Sheets—](#consolidated_balance_sheets) [December] 31, [removed: 2021] [added: 2022] and December 31, [removed: 2020](#CONSOLIDATED_BALANCE_SHEETS) |] [added: 2021](#consolidated_balance_sheets)] | K-70 |

| [Consolidated Statements of [removed: Earnings— Years] [added: Earnings—](#consolidated_statements_earnings) [Years] Ended December 31, [removed: 2021,] [added: 2022,] December 31, [removed: 2020,] [added: 2021,] and December 31, [removed: 2019](#CONSOLIDATED_STATEMENTS_EARNINGS) |] [added: 2020](#consolidated_statements_earnings)] | K-72 |

| [Consolidated Statements of Comprehensive [removed: Income— Years] [added: Income—](#consolidated_statements_comprehensive_in) [Years] Ended December 31, [removed: 2021,] [added: 2022,] December 31, [removed: 2020,] [added: 2021,] and December 31, [removed: 2019](#CONSOLIDATED_STATEMENTS_COMPREHENSIVE_IN) |] [added: 2020](#consolidated_statements_comprehensive_in)] | K-73 |

| [Consolidated Statements of Changes in Shareholders’ [removed: Equity— Years] [added: Equity—](#consolidated_statements_changes_in_share) [Years] Ended December 31, [removed: 2021,] [added: 2022,] December 31, [removed: 2020,] [added: 2021,] and December 31, [removed: 2019](#CONSOLIDATED_STATEMENTS_CHANGES_IN_SHARE) |] [added: 2020](#consolidated_statements_changes_in_share)] | K-73 |

| [Consolidated Statements of Cash [removed: Flows— Years] [added: Flows—](#consolidated_statements_cash_flows) [Years] Ended December 31, [removed: 2021,] [added: 2022,] December 31, [removed: 2020,] [added: 2021,] and December 31, [removed: 2019](#CONSOLIDATED_STATEMENTS_CASH_FLOWS) |] [added: 2020](#consolidated_statements_cash_flows)] | K-74 |

| [Notes to Consolidated Financial [removed: Statements](#NOTES_TO_CONSOLIDATED_FINANCIAL_STATEMEN) |] [added: Statements](#notes_to_consolidated_financial_statemen)] | K-75 |

| 2. *Financial Statement Schedule* | | [removed: |]

| [Report of Independent Registered Public Accounting [removed: Firm](#REPORT_OF_INDEPENDENT_REGISTERED_2) |] [added: Firm](#report_of_independent_registered_2)] | [removed: K-114] [added: K-115] |

| [Schedule I—Parent Company Condensed Financial [removed: Information Balance] [added: Information](#schedule_i) [Balance] Sheets as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] Statements of Earnings and Comprehensive Income and Cash Flows for the years ended December 31, [removed: 2021,] [added: 2022,] December 31, [removed: 2020] [added: 2021,] and December 31, [removed: 2019] [added: 2020] and Note to Condensed Financial [removed: Information](#SCHEDULE_I) |] [added: Information](#schedule_i)] | [removed: K-115] [added: K-116] |

| Other schedules are omitted because they are not required, information therein is not applicable, or is reflected in the Consolidated Financial Statements or notes thereto. | | [removed: |]

See the “Exhibit Index” at page [removed: K-117.][added: K-118.]

[removed: REPORT] [added: REPORT] OF INDEPENDENT [removed: REGISTERED] [added: REGISTERED] PUBLIC ACCOUNTING [removed: FIRM][added: FIRM]

[removed: Opinion] [added: Opinion] on the Financial Statement [removed: Schedule][added: Schedule]

We have audited the consolidated financial statements of Berkshire Hathaway Inc. and subsidiaries (the “Company”) as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] and for each of the three years in the period ended December 31, [removed: 2021,] [added: 2022,] and the Company’s internal control over financial reporting as of December 31, [removed: 2021,] [added: 2022,] and have issued our report thereon dated February [removed: 26, 2022;] [added: 25, 2023;] such consolidated financial statements and [removed: report] [added: reports] are included elsewhere in this Form 10-K.

In our opinion, such financial statement [removed: schedule,] [added: schedules,] when considered in relation to the financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

[removed: BERKSHIRE] [added: BERKSHIRE] HATHAWAY INC. (Parent [removed: Company)][added: Company)]

[removed: Condensed] [added: Condensed] Financial [removed: Information][added: Information]

[removed: (Dollars] [added: (Dollars] in [removed: millions)][added: millions)]

[removed: Schedule] [added: Schedule] I [added: (continued)]

[removed: Balance Sheets][added: Balance Sheets]

| | | [removed: December 31,] [added: December 31,] | | | | | | |

| | | [removed: 2021] [added: 2022] | | | | [removed: 2020] [added: 2021] | | | [added: | 2020 | | |]

| Cash and cash equivalents | | $ | [removed: 18,797] [added: 2,777] | | | $ | [removed: 12,329] [added: 18,797] | |

| Short-term investments in U.S. Treasury Bills | | | [removed: 9,681] [added: 17,628] | | | | [removed: 29,773] [added: 9,681] | |

| Investments in and advances [removed: to/from] [added: to] consolidated subsidiaries | | | [removed: 486,862] [added: 462,030] | | | | [removed: 411,826] [added: 486,862] | |

| Investment in The Kraft Heinz Company | | | [removed: 13,112] [added: 12,937] | | | | [removed: 13,336] [added: 13,112] | |

| Other assets | | | [removed: 140] [added: 12] | | | | [removed: 108] [added: 140] | |

| Accounts payable, accrued interest and other liabilities | | $ | [removed: 237] [added: 355] | | | $ | [removed: 369] [added: 237] | |

| Income taxes, principally deferred | | | [removed: 747] [added: 1,276] | | | | [removed: 1,174] [added: 747] | |

| Notes payable and other borrowings | | | [removed: 21,409] [added: 21,393] | | | | [removed: 22,665] [added: 21,409] | |

| Berkshire Hathaway shareholders’ equity | | | [removed: 506,199] [added: 472,360] | | | | [removed: 443,164] [added: 506,199] | |

[removed: Statements] [added: Statements] of Earnings and Comprehensive [removed: Income][added: Income]

| | | [removed: Year] [added: Year] ended December [removed: 31,] [added: 31,] | | | | | | | | | | |