filings.toolsItem 5. Other Information
8K characters. Original on sec.gov ·
Item 5. Other Information
As disclosed in Notes 2 and 16 to the accompanying Consolidated Financial Statements included in this Form 10-Q, we adopted ASU 2018-12 on January 1, 2023 on the modified retrospective basis beginning as of the January 1, 2021 transition date. Most significantly, ASU 2018-12 changed the measurement of our long duration life, annuity and health insurance benefit liabilities, primarily attributable to changes in discount rate assumptions used in measuring such liabilities. ASU 2018-12 also made relatively minor modifications to the accounting for deferred policy acquisition cost amortization and changed the classification and measurement of certain market risk benefit liabilities, such as those related to variable annuity contracts.
Item 5. Other Information (Continued)
A summary of the revisions to the affected balances included in our previously reported Consolidated Financial Statements for the years ended December 31, 2021 and 2022 and as of the January 1, 2021 transition date follows. Amounts are in millions, except per share amounts.
| Dec. 31, 2020 | January 1, 2021 | December 31, 2021 | December 31, 2022 | ||||||||||||||||||||||||||||||||
| Previously reported | Increase (decrease) | As revised | Previously reported | Increase (decrease) | As revised | Previously reported | Increase (decrease) | As revised | |||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Other receivables | $ | 32,310 | $ | 738 | $ | 33,048 | $ | 35,388 | $ | 580 | $ | 35,968 | $ | 43,506 | $ | (16 | ) | $ | 43,490 | ||||||||||||||||
| Other | 14,580 | — | 14,580 | 15,854 | 24 | 15,878 | 19,628 | 29 | 19,657 | ||||||||||||||||||||||||||
| Total assets | 873,729 | $ | 738 | 874,467 | 958,784 | $ | 604 | 959,388 | 948,452 | $ | 13 | 948,465 | |||||||||||||||||||||||
| Liabilities and shareholders’ equity: | |||||||||||||||||||||||||||||||||||
| Unearned premiums | 21,395 | $ | (56 | ) | 21,339 | 23,512 | $ | (56 | ) | 23,456 | 28,657 | $ | — | 28,657 | |||||||||||||||||||||
| Life, annuity and health insurance benefits | 21,616 | 7,220 | 28,836 | 22,282 | 5,013 | 27,295 | 22,421 | (2,668 | ) | 19,753 | |||||||||||||||||||||||||
| Other policyholder liabilities | 8,670 | 1,697 | 10,367 | 9,901 | 1,485 | 11,386 | 10,101 | 1,269 | 11,370 | ||||||||||||||||||||||||||
| Income taxes, principally deferred | 74,098 | (1,695 | ) | 72,403 | 90,243 | (1,207 | ) | 89,036 | 77,020 | 348 | 77,368 | ||||||||||||||||||||||||
| Total liabilities | 422,393 | 7,166 | 429,559 | 443,854 | 5,235 | 449,089 | 467,835 | (1,051 | ) | 466,784 | |||||||||||||||||||||||||
| Accumulated other comprehensive income | (4,243 | ) | (5,751 | ) | (9,994 | ) | (4,027 | ) | (4,096 | ) | (8,123 | ) | (6,591 | ) | 1,539 | (5,052 | ) | ||||||||||||||||||
| Retained earnings | 444,626 | (677 | ) | 443,949 | 534,421 | (535 | ) | 533,886 | 511,602 | (475 | ) | 511,127 | |||||||||||||||||||||||
| Berkshire Hathaway shareholders’ equity | 443,164 | (6,428 | ) | 436,736 | 506,199 | (4,631 | ) | 501,568 | 472,360 | 1,064 | 473,424 | ||||||||||||||||||||||||
| Total shareholders’ equity | 451,336 | (6,428 | ) | 444,908 | 514,930 | (4,631 | ) | 510,299 | 480,617 | 1,064 | 481,681 | ||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | 873,729 | $ | 738 | 874,467 | 958,784 | $ | 604 | 959,388 | 948,452 | $ | 13 | 948,465 |
| Year ended December 31, 2021 | Year ended December 31, 2022 | ||||||||||||||||||||||
| Previously reported | Increase (decrease) | As revised | Previously reported | Increase (decrease) | As revised | ||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Insurance premiums earned | $ | 69,478 | $ | (18 | ) | $ | 69,460 | $ | 74,645 | $ | (69 | ) | $ | 74,576 | |||||||||
| Cost and expenses: | |||||||||||||||||||||||
| Life, annuity and health insurance benefits | 6,007 | (183 | ) | 5,824 | 5,152 | 91 | 5,243 | ||||||||||||||||
| Insurance underwriting expenses | 12,569 | (10 | ) | 12,559 | 11,942 | (236 | ) | 11,706 | |||||||||||||||
| Earnings (loss) before income taxes | 111,686 | 175 | 111,861 | (30,576 | ) | 76 | (30,500 | ) | |||||||||||||||
| Income tax expense (benefit) | 20,879 | 33 | 20,912 | (8,518 | ) | 16 | (8,502 | ) | |||||||||||||||
| Net earnings (loss) | 90,807 | 142 | 90,949 | (22,058 | ) | 60 | (21,998 | ) | |||||||||||||||
| Net earnings (loss) attributable to Berkshire Hathaway shareholders | 89,795 | 142 | 89,937 | (22,819 | ) | 60 | (22,759 | ) | |||||||||||||||
| Other comprehensive income: | |||||||||||||||||||||||
| Foreign currency translation | (1,011 | ) | — | (1,011 | ) | (2,136 | ) | (2 | ) | (2,138 | ) | ||||||||||||
| Long duration insurance contracts | — | 2,108 | 2,108 | — | 7,177 | 7,177 | |||||||||||||||||
| Applicable income taxes | — | (453 | ) | (453 | ) | — | (1,540 | ) | (1,540 | ) | |||||||||||||
| Other comprehensive income, net | 234 | 1,655 | 1,889 | (2,625 | ) | 5,635 | 3,010 | ||||||||||||||||
| Comprehensive income attributable to Berkshire Hathaway shareholders | 90,011 | 1,797 | 91,808 | (25,383 | ) | 5,695 | (19,688 | ) | |||||||||||||||
| Net earnings (loss) per average equivalent Class A share | $ | 59,460 | $ | 94 | $ | 59,554 | $ | (15,535 | ) | $ | 41 | $ | (15,494 | ) | |||||||||
| Net earnings (loss) per average equivalent Class B share | $ | 39.64 | $ | 0.06 | $ | 39.70 | $ | (10.36 | ) | $ | 0.03 | $ | (10.33 | ) |
Previous: Item 1A. Risk Factors · Next: Item 6. Exhibits