Item 1. Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED BA****LANCE SHEETS

(dollars in millions)

	June 30, 2024				December 31, 2023
	(Unaudited)
ASSETS
Insurance and Other:
Cash and cash equivalents*	$	36,884			$	33,672
Short-term investments in U.S. Treasury Bills		234,618				129,619
Investments in fixed maturity securities		16,802				23,758
Investments in equity securities		284,871				353,842
Equity method investments		30,065				29,066
Loans and finance receivables		26,085				24,681
Other receivables		45,967				44,174
Inventories		23,498				24,159
Property, plant and equipment		22,144				22,030
Equipment held for lease		17,418				16,947
Goodwill		50,800				50,868
Other intangible assets		28,788				29,327
Deferred charges - retroactive reinsurance		9,064				9,495
Other		20,629				19,568
		847,633				811,206
Railroad, Utilities and Energy:
Cash and cash equivalents*		5,440				4,350
Receivables		6,502				7,086
Property, plant and equipment		179,907				177,616
Goodwill		33,611				33,758
Regulatory assets		5,392				5,565
Other		30,375				30,397
		261,227				258,772
	$	1,108,860			$	1,069,978

——————

*** Includes U.S. Treasury Bills *with maturities of three months or less when purchased of $*4.1 *billion at June 30, 2024 and $*4.8 billion at December 31, 2023.

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CON****SOLIDATED BALANCE SHEETS

(dollars in millions)

	June 30, 2024				December 31, 2023
	(Unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Insurance and Other:
Unpaid losses and loss adjustment expenses	$	112,804			$	111,082
Unpaid losses and loss adjustment expenses - retroactive reinsurance contracts		33,494				34,647
Unearned premiums		32,185				30,507
Life, annuity and health insurance benefits		17,500				20,213
Other policyholder liabilities		10,719				11,545
Accounts payable, accruals and other liabilities		32,403				32,402
Aircraft repurchase liabilities and unearned lease revenues		8,442				8,253
Notes payable and other borrowings		41,940				42,692
		289,487				291,341
Railroad, Utilities and Energy:
Accounts payable, accruals and other liabilities		21,194				22,461
Regulatory liabilities		7,106				6,818
Notes payable and other borrowings		81,688				85,579
		109,988				114,858
Income taxes, principally deferred		101,414				93,009
Total liabilities		500,889				499,208
Redeemable noncontrolling interests		—				3,261
Shareholders’ equity:
Common stock		8				8
Capital in excess of par value		34,991				34,480
Accumulated other comprehensive income		(3,855	)			(3,763	)
Retained earnings		650,273				607,350
Treasury stock, at cost		(79,720	)			(76,802	)
Berkshire Hathaway shareholders’ equity		601,697				561,273
Noncontrolling interests		6,274				6,236
Total shareholders’ equity		607,971				567,509
	$	1,108,860			$	1,069,978

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED STATEM****ENTS OF EARNINGS

(dollars in millions except per share amounts)

(Unaudited)

	Second Quarter						First Six Months
	2024			2023			2024			2023
Revenues:
Insurance and Other:
Insurance premiums earned	$	21,953		$	20,561		$	43,427		$	40,357
Sales and service revenues		38,892			39,126			76,364			77,514
Leasing revenues		2,308			2,079			4,530			4,123
Interest, dividend and other investment income		5,249			3,846			9,554			7,075
		68,402			65,612			133,875			129,069
Railroad, Utilities and Energy:
Freight rail transportation revenues		5,720			5,808			11,357			11,809
Utility and energy operating revenues		18,048			19,593			35,738			34,510
Service revenues and other income		1,483			1,490			2,552			2,508
		25,251			26,891			49,647			48,827
Total revenues		93,653			92,503			183,522			177,896
Investment gains (losses)		23,857			33,061			25,733			67,819
Costs and expenses:
Insurance and Other:
Insurance losses and loss adjustment expenses		14,107			14,089			27,555			28,310
Life, annuity and health benefits		954			1,128			1,899			1,913
Insurance underwriting expenses		4,046			3,729			7,799			7,316
Cost of sales and services		30,391			30,621			59,786			60,940
Cost of leasing		1,739			1,457			3,430			2,934
Selling, general and administrative expenses		5,195			5,005			9,968			10,607
Interest expense		330			314			646			642
		56,762			56,343			111,083			112,662
Railroad, Utilities and Energy:
Freight rail transportation expenses		3,912			4,014			7,850			8,175
Utility and energy cost of sales and other expenses		16,819			18,159			33,087			32,005
Other expenses		1,232			1,189			2,237			2,060
Interest expense		900			935			1,900			1,825
		22,863			24,297			45,074			44,065
Total costs and expenses		79,625			80,640			156,157			156,727
Earnings before income taxes and equity method earnings		37,885			44,924			53,098			88,988
Equity method earnings		252			511			745			1,199
Earnings before income taxes		38,137			45,435			53,843			90,187
Income tax expense		7,639			9,236			10,513			18,231
Net earnings		30,498			36,199			43,330			71,956
Earnings attributable to noncontrolling interests		150			287			280			540
Net earnings attributable to Berkshire Hathaway shareholders	$	30,348		$	35,912		$	43,050		$	71,416
Net earnings per average equivalent Class A share	$	21,122		$	24,775		$	29,936		$	49,152
Net earnings per average equivalent Class B share*	$	14.08		$	16.52		$	19.96		$	32.77
Average equivalent Class A shares outstanding		1,436,790			1,449,542			1,438,080			1,452,971
Average equivalent Class B shares outstanding		2,155,185,283			2,174,313,670			2,157,120,209			2,179,456,816

——————

*** Net earnings per average equivalent Class B share outstanding are equal to one-fifteen-hundredth of the equivalent Class A amount. See Note 19.

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED STATEMENTS O****F COMPREHENSIVE INCOME

(dollars in millions)

(Unaudited)

		Second Quarter								First Six Months
		2024				2023				2024				2023
Net earnings		$	30,498			$	36,199			$	43,330			$	71,956
Other comprehensive income:
Unrealized gains (losses) on investments			10				(41	)			(25	)			206
Applicable income taxes			(3	)			21				3				(32	)
Foreign currency translation			(222	)			383				(761	)			632
Applicable income taxes			(8	)			(21	)			(8	)			(15	)
Long-duration insurance contract discount rate changes			508				487				859				120
Applicable income taxes			(108	)			(125	)			(175	)			(49	)
Defined benefit pension plans			(5	)			2				1				52
Applicable income taxes			1				(6	)			(1	)			(12	)
Other, net			17				57				(13	)			(63	)
Other comprehensive income, net			190				757				(120	)			839
Comprehensive income			30,688				36,956				43,210				72,795
Comprehensive income attributable to noncontrolling interests			145				308				252				567
Comprehensive income attributable to Berkshire Hathaway shareholders		$	30,543			$	36,648			$	42,958			$	72,228

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(dollars in millions)

(Unaudited)

		Berkshire Hathaway shareholders’ equity
		Common stock and capital in excess of par value				Accumulated other comprehensive income				Retained earnings				Treasury stock				Non- controlling interests				Total
For the second quarter and first six months of 2024
Balance at December 31, 2023		$	34,488			$	(3,763	)		$	607,350			$	(76,802	)		$	6,236			$	567,509
Net earnings			—				—				12,702				—				130				12,832
Adoption of ASU 2023-02			—				—				(127	)			—				—				(127	)
Other comprehensive income, net			—				(287	)			—				—				(23	)			(310	)
Acquisitions of common stock			—				—				—				(2,573	)			—				(2,573	)
Transactions with noncontrolling interests and other			502				—				—				—				(48	)			454
Balance at March 31, 2024		$	34,990			$	(4,050	)		$	619,925			$	(79,375	)		$	6,295			$	577,785
Net earnings			—				—				30,348				—				150				30,498
Other comprehensive income, net			—				195				—				—				(5	)			190
Acquisitions of common stock			—				—				—				(345	)			—				(345	)
Transactions with noncontrolling interests and other			9				—				—				—				(166	)			(157	)
Balance at June 30, 2024		$	34,999			$	(3,855	)		$	650,273			$	(79,720	)		$	6,274			$	607,971
For the second quarter and first six months of 2023
Balance at December 31, 2022		$	35,175			$	(5,052	)		$	511,127			$	(67,826	)		$	8,257			$	481,681
Net earnings			—				—				35,504				—				253				35,757
Other comprehensive income, net			—				76				—				—				6				82
Acquisitions of common stock			—				—				—				(4,439	)			—				(4,439	)
Transactions with noncontrolling interests and other			(11	)			—				—				—				7				(4	)
Balance at March 31, 2023		$	35,164			$	(4,976	)		$	546,631			$	(72,265	)		$	8,523			$	513,077
Net earnings			—				—				35,912				—				287				36,199
Other comprehensive income, net			—				736				—				—				21				757
Acquisitions of common stock			—				—				—				(1,303	)			—				(1,303	)
Transactions with noncontrolling interests and other			(16	)			—				—				—				(163	)			(179	)
Balance at June 30, 2023		$	35,148			$	(4,240	)		$	582,543			$	(73,568	)		$	8,668			$	548,551

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED STATEM****ENTS OF CASH FLOWS

(dollars in millions)

(Unaudited)

		First Six Months
		2024				2023
Cash flows from operating activities:
Net earnings		$	43,330			$	71,956
Adjustments to reconcile net earnings to operating cash flows:
Investment (gains) losses			(25,733	)			(67,819	)
Depreciation and amortization			6,366				6,147
Other			(5,474	)			(3,126	)
Changes in operating assets and liabilities:
Unpaid losses and loss adjustment expenses			690				275
Deferred charges - retroactive reinsurance			431				416
Unearned premiums			1,735				2,492
Receivables and originated loans			(1,145	)			(1,194	)
Inventories			456				505
Other assets			(836	)			(980	)
Other liabilities			(3,782	)			(2,721	)
Income taxes			8,130				15,176
Net cash flows from operating activities			24,168				21,127
Cash flows from investing activities:
Purchases of equity securities			(4,306	)			(7,442	)
Sales of equity securities			97,123				25,833
Purchases of U.S. Treasury Bills and fixed maturity securities			(229,505	)			(99,060	)
Sales of U.S. Treasury Bills and fixed maturity securities			15,018				39,991
Redemptions and maturities of U.S. Treasury Bills and fixed maturity securities			120,480				59,815
Acquisitions of businesses, net of cash acquired			(342	)			(8,516	)
Purchases of property, plant and equipment and equipment held for lease			(8,928	)			(8,398	)
Other			(191	)			513
Net cash flows from investing activities			(10,651	)			2,736
Cash flows from financing activities:
Proceeds from borrowings of insurance and other businesses			1,692				1,225
Repayments of borrowings of insurance and other businesses			(1,172	)			(5,388	)
Proceeds from borrowings of railroad, utilities and energy businesses			6,617				2,788
Repayments of borrowings of railroad, utilities and energy businesses			(7,192	)			(2,187	)
Changes in short-term borrowings, net			(3,161	)			582
Acquisitions of treasury stock			(2,918	)			(5,850	)
Other, principally transactions with noncontrolling interests			(2,814	)			(803	)
Net cash flows from financing activities			(8,948	)			(9,633	)
Effects of foreign currency exchange rate changes			(141	)			24
Increase (decrease) in cash and cash equivalents and restricted cash			4,428				14,254
Cash and cash equivalents and restricted cash at the beginning of the year*			38,643				36,399
Cash and cash equivalents and restricted cash at the end of the second quarter*		$	43,071			$	50,653
*Cash and cash equivalents and restricted cash are comprised of:
Beginning of the year—
Insurance and Other		$	33,672			$	32,260
Railroad, Utilities and Energy			4,350				3,551
Restricted cash included in other assets			621				588
		$	38,643			$	36,399
End of the second quarter—
Insurance and Other		$	36,884			$	44,611
Railroad, Utilities and Energy			5,440				5,444
Restricted cash included in other assets			747				598
		$	43,071			$	50,653

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2024

Note 1. General

The accompanying unaudited Consolidated Financial Statements include the accounts of Berkshire Hathaway Inc. (“Berkshire” or “Company”) consolidated with the accounts of all its subsidiaries and affiliates in which Berkshire holds controlling financial interests as of the financial statement date. In these notes, the terms “us,” “we” or “our” refer to Berkshire and its consolidated subsidiaries. Reference is made to Berkshire’s most recently issued Annual Report on Form 10-K (“Annual Report”), which includes information necessary or useful to understanding Berkshire’s businesses and financial statement presentations. Our significant accounting policies and practices were presented as Note 1 to the Consolidated Financial Statements included in the Annual Report.

Financial information in this Quarterly Report reflects all adjustments that are, in the opinion of management, necessary to a fair statement of results for the interim periods in accordance with accounting principles generally accepted in the United States (“GAAP”). For several reasons, our results for interim periods may not be indicative of results to be expected for the year. The timing and magnitude of catastrophe losses incurred by insurance subsidiaries and the estimation error inherent to the process of determining liabilities for unpaid losses of insurance subsidiaries can be more significant to results of interim periods than to results for a full year. Given the size of our equity security investment portfolio, changes in market prices and the related changes in unrealized gains and losses on equity securities will produce significant volatility in our interim and annual earnings. In addition, gains and losses from the periodic revaluation of certain assets and liabilities denominated in foreign currencies and asset impairment charges may cause significant variations in periodic net earnings.

Significant estimates are used in the preparation of our Consolidated Financial Statements, including those associated with evaluations of certain long-lived assets, goodwill and other intangible assets for impairment, expected credit losses on amounts owed to us and the estimation of certain losses assumed under insurance and reinsurance contracts. These estimates may be subject to significant adjustments in future periods due to ongoing macroeconomic and geopolitical events, as well as changes in industry or company-specific factors or events.

Note 2. New accounting pronouncements

In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2023-02, “Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” (“ASU 2023-02”). ASU 2023-02 permits reporting entities to elect to account for tax equity investments from which the income tax credits are received using the proportional amortization method at the program level if certain conditions are met. We elected to apply the proportional accounting method to eligible affordable housing tax credit investments using the modified retrospective method. We recorded a charge to retained earnings of $127 million, representing the cumulative effect of applying the proportional method to these investments as of January 1, 2024.

In November 2023, the FASB issued Accounting Standards Update 2023-07, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which requires disclosures of significant expenses by segment and interim disclosure of certain items that were previously required only on an annual basis. ASU 2023-07 is to be applied on a retrospective basis and is effective for our 2024 annual Consolidated Financial Statements and interim periods beginning in 2025.

In December 2023, the FASB issued Accounting Standards Update 2023-09, “Improvements to Income Tax Disclosures” (“ASU 2023-09”), which provides for additional income tax rate reconciliation and income taxes paid disclosures. ASU 2023-09 may be adopted on a prospective or retrospective basis and is effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

On March 6, 2024, the U.S. Securities Exchange Commission (“SEC”) issued Release No. 33-11275 and No. 34-99678 “The Enhancement and Standardization of Climate-Related Disclosures for Investors” (“Climate Disclosure Rules”). Among its provisions, the Climate Disclosure Rules will require certain disclosures related to severe weather events and other natural conditions, and other disclosures about climate-related risks that materially impacted or are reasonably likely to materially impact the business strategy, results of operations or financial condition of the registrant. The Climate Disclosure Rules are currently effective for large-accelerated SEC filers in annual reports for years beginning on or after January 1, 2025. However, on April 4, 2024, the SEC stayed implementation of the Climate Disclosure Rules, pending the completion of judicial review.

We are evaluating the impacts ASUs 2023-07 and 2023-09 and the Climate Disclosure Rules will have on disclosures in our Consolidated Financial Statements.

Notes to Consolidated Financial Statements

Note 3. Significant business acquisitions

Our long-held acquisition strategy is to acquire businesses that have consistent earning power, good returns on equity and able and honest management. Financial results attributable to business acquisitions are included in our Consolidated Financial Statements beginning on their respective acquisition dates.

On January 31, 2023, we acquired an additional 41.4% interest in Pilot Travel Centers, LLC (“Pilot”) for approximately $8.2 billion. The acquisition increased our interest to 80%, representing a controlling interest in Pilot for financial reporting purposes as of that date. Accordingly, we began consolidating Pilot’s financial statements in our Consolidated Financial Statements on February 1, 2023. Prior to that date, we accounted for our 38.6% interest in Pilot under the equity method.

Pilot operates more than 650 travel center and 75 fuel-only locations across 44 U.S. states and five Canadian provinces, primarily under the names Pilot or Flying J, as well as large wholesale fuel and fuel marketing businesses in the U.S. Pilot also sells diesel fuel at other locations in the U.S. and Canada through various arrangements with third party travel centers and operates a water disposal business in the oil fields sector. Since Pilot’s most significant business activities involve purchasing and selling fuel (energy) on a wholesale and retail basis, and other energy-related businesses, we include Pilot within the railroad, utilities and energy sections of our Consolidated Balance Sheets and Consolidated Statements of Earnings.

In applying the acquisition method of accounting, we remeasured our previously held 38.6% investment in Pilot to fair value as of the acquisition date. We recognized a one-time, non-cash remeasurement gain of approximately $3.0 billion in the first quarter of 2023, representing the excess of the fair value of that interest over the carrying value under the equity method.

In January 2024, we acquired the remaining noncontrolling interests in Pilot for $2.6 billion, increasing our ownership of Pilot to 100%. The acquisition of a noncontrolling interest represents an equity transaction and we recorded an increase of $517 million to capital in excess of par for the excess of the carrying value of the noncontrolling interest acquired over the consideration paid, net of deferred income tax liabilities arising from the transaction.

A summary of the values of Pilot’s assets acquired, liabilities assumed and noncontrolling interests as of January 31, 2023 follows (in millions).

Assets acquired				Liabilities assumed and noncontrolling interests
Property, plant and equipment	$	8,015		Notes payable	$	5,876
Goodwill*		6,605		Other liabilities		4,918
Other intangible assets		6,853		Liabilities assumed		10,794
Other assets		7,047		Noncontrolling interests, predominantly redeemable		3,361
				Liabilities assumed and noncontrolling interests	$	14,155
Assets acquired	$	28,520		Net assets	$	14,365

——————

*** Goodwill from this acquisition is expected to be deductible for income tax purposes.

Note 4. Investments in fixed maturity securities

Investments in fixed maturity securities are summarized as follows (in millions).

		Amortized Cost				Unrealized Gains				Unrealized Losses				Fair Value
June 30, 2024
U.S. Treasury, U.S. government corporations and agencies		$	4,773			$	3			$	(13	)		$	4,763
Foreign governments			10,430				31				(42	)			10,419
Corporate bonds			1,180				211				(5	)			1,386
Other			220				17				(3	)			234
		$	16,603			$	262			$	(63	)		$	16,802
December 31, 2023
U.S. Treasury, U.S. government corporations and agencies		$	10,308			$	14			$	(53	)		$	10,269
Foreign governments			11,788				58				(41	)			11,805
Corporate bonds			1,212				241				(4	)			1,449
Other			217				21				(3	)			235
		$	23,525			$	334			$	(101	)		$	23,758

Notes to Consolidated Financial Statements

Note 4. Investments in fixed maturity securities

As of June 30, 2024, approximately 94% of our foreign government holdings were rated AA or higher by at least one of the major rating agencies. The amortized cost and estimated fair value of fixed maturity securities at June 30, 2024 are summarized below by contractual maturity dates (in millions). Actual maturities may differ from contractual maturities due to prepayment rights held by issuers.

		Due in one year or less				Due after one year through five years				Due after five years through ten years				Due after ten years				Mortgage- backed securities				Total
Amortized cost		$	11,002			$	4,754			$	577			$	129			$	141			$	16,603
Fair value			10,990				4,756				766				139				151				16,802

Note 5. Investments in equity securities

Investments in equity securities are summarized as follows (in millions).

		Cost Basis				Net Unrealized Gains				Fair Value
June 30, 2024*
Banks, insurance and finance		$	28,585			$	66,341			$	94,926
Consumer products			14,862				98,407				113,269
Commercial, industrial and other			45,006				31,670				76,676
		$	88,453			$	196,418			$	284,871

——————

*** Approximately 72*% of the aggregate fair value was concentrated in* five *companies (American Express Company – $*35.1 *billion; Apple Inc. – $*84.2 *billion; Bank of America Corporation – $*41.1 *billion; The Coca-Cola Company – $*25.5 *billion and Chevron Corporation – $*18.6 billion).

		Cost Basis				Net Unrealized Gains				Fair Value
December 31, 2023*
Banks, insurance and finance		$	27,136			$	51,176			$	78,312
Consumer products			34,248				166,895				201,143
Commercial, industrial and other			48,032				26,355				74,387
		$	109,416			$	244,426			$	353,842

——————

*** Approximately 79*% of the aggregate fair value was concentrated in* five *companies (American Express Company – $*28.4 *billion; Apple Inc. – $*174.3 *billion; Bank of America Corporation – $*34.8 *billion; The Coca-Cola Company – $*23.6 *billion and Chevron Corporation – $*18.8 billion).

In 2019, we invested $10 billion in non-voting Cumulative Perpetual Preferred Stock of Occidental Petroleum Corporation (“Occidental”) and in Occidental common stock warrants. During 2022, we began acquiring common stock of Occidental. Our aggregate voting interest in Occidental common stock exceeded 20% on August 4, 2022, and we adopted the equity method as of that date. See Note 6. Our investments in the Occidental preferred stock and Occidental common stock warrants are recorded at fair value within Commercial, industrial and other in the tables above. Such investments are not in-substance common stock under GAAP and are not eligible for the equity method.

The Occidental preferred stock accrues dividends at 8% per annum and is redeemable at the option of Occidental commencing in 2029 at a redemption price equal to 105% of the liquidation value, plus any accumulated and unpaid dividends. As of June 30, 2024, our investment in Occidental preferred stock had an aggregate liquidation value of approximately $8.5 billion, which reflected mandatory redemptions by Occidental during 2023 of approximately $1.5 billion. The Occidental common stock warrants allow us to purchase up to 83.86 million shares of Occidental common stock at an exercise price of $59.62 per share. The warrants are exercisable in whole or in part until one year after the date the preferred stock is fully redeemed.

On June 30, 2024, we owned 151.6 million shares of American Express Company (“American Express”) common stock representing 21.3% of its outstanding common stock. Since 1995, we have been party to an agreement with American Express whereby we agreed to vote a significant portion of our shares in accordance with the recommendations of the American Express Board of Directors. We have also agreed to passivity commitments as requested by the Board of Governors of the Federal Reserve System, which collectively, in our judgment, restrict our ability to exercise significant influence over the operating and financial policies of American Express. Accordingly, we do not use the equity method with respect to our investment in American Express common stock, and we continue to record our investment at fair value.

Notes to Consolidated Financial Statements

Note 6. Equity method investments

Berkshire and its subsidiaries hold investments in certain businesses that are accounted for pursuant to the equity method. Currently, the most significant of these are our investments in the common stock of The Kraft Heinz Company (“Kraft Heinz”) and Occidental. As of June 30, 2024, we owned 26.9% of the outstanding Kraft Heinz common stock and 28.8% of the outstanding Occidental common stock, which excludes the potential effect of the exercise of the Occidental common stock warrants.

Kraft Heinz manufactures and markets food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee and other grocery products. Occidental is an international energy company, whose activities include oil and natural gas exploration, development and production and chemicals manufacturing businesses. Occidental’s financial information is not available in time for concurrent reporting in our Consolidated Financial Statements. Therefore, we report the equity method effects for Occidental on a one-quarter lag.

Kraft Heinz and Occidental common stocks are publicly traded. The fair values and our carrying values of these investments are included in the following table (in millions).

	Carrying Value								Fair Value
	June 30, 2024				December 31, 2023				June 30, 2024				December 31, 2023
Kraft Heinz	$	13,161			$	13,230			$	10,486			$	12,035
Occidental		16,455				15,410				16,090				14,552
Other		449				426
	$	30,065			$	29,066

As of June 30, 2024, the excess of the carrying values over the fair values of our investments in Kraft Heinz and Occidental was 20% and 2%, respectively, of the carrying values of each investment. We evaluated these investments for other-than-temporary impairment as of June 30, 2024. We considered our ability and intent to hold the investment until the fair value exceeds carrying value, the magnitude and duration of the decline in fair value, the operating results of the company, as well as other factors. Based on the prevailing facts and circumstances, we concluded the recognition of an impairment charge in earnings was not required.

We also own a 50% interest in Berkadia Commercial Mortgage LLC (“Berkadia”), which is accounted for under the equity method and is included in other in the preceding table. Jefferies Financial Group Inc. (“Jefferies”) owns the other 50% interest. Berkadia engages in mortgage banking, investment sales and servicing of commercial/multi-family real estate loans. Berkadia’s commercial paper borrowing capacity (currently limited to $1.5 billion) is supported by a surety policy issued by a Berkshire insurance subsidiary. Jefferies is obligated to indemnify us for one-half of any losses incurred under the policy.

As of June 30, 2024, the carrying values of our investments in Kraft Heinz and Berkadia approximated our share of shareowners’ equity of each of these entities. The carrying value of our investment in Occidental common stock exceeded our share of its shareholders’ equity as of March 31, 2024 by approximately $10 billion. Based upon the limited information available to us, we concluded the excess represents goodwill.

Our earnings and distributions received from equity method investments are summarized in the following table (in millions). As previously described, on February 1, 2023, we ceased accounting for Pilot under the equity method. Equity method earnings attributable to Pilot were $105 million for the month ending January 31, 2023. The earnings we recorded in the first six months of 2024 and 2023 for Occidental represented our share of its earnings for the six months ending March 31, 2024 and 2023, respectively.

	Equity in Earnings																Distributions Received
	Second Quarter								First Six Months								Second Quarter								First Six Months
	2024				2023				2024				2023				2024				2023				2024				2023
Kraft Heinz	$	27			$	265			$	242			$	487			$	130			$	130			$	260			$	260
Occidental		200				234				463				604				55				36				96				61
Other		25				12				40				108				14				21				18				21
	$	252			$	511			$	745			$	1,199			$	199			$	187			$	374			$	342

Notes to Consolidated Financial Statements

Note 6. Equity method investments

Summarized consolidated financial information of Kraft Heinz follows (in millions).

	June 29, 2024				December 30, 2023
Assets	$	88,797			$	90,339
Liabilities		39,766				40,617

	Second Quarter								First Six Months
	2024				2023				2024				2023
Sales	$	6,476			$	6,721			$	12,887			$	13,210
Net earnings attributable to Kraft Heinz common shareholders		102				1,000				903				1,836

Summarized consolidated financial information of Occidental follows (in millions).

	March 31, 2024				September 30, 2023
Assets	$	74,277			$	71,287
Liabilities		43,310				42,515

	Quarter ending March 31,								Six months ending March 31,
	2024				2023				2024				2023
Total revenues and other income	$	6,010			$	7,258			$	13,539			$	15,584
Net earnings attributable to Occidental common shareholders		718				983				1,747				2,710

Note 7. Investment gains (losses)

Investment gains (losses) in the second quarter and first six months of 2024 and 2023 are summarized as follows (in millions).

		Second Quarter								First Six Months
		2024				2023				2024				2023
Investment gains (losses):
Equity securities:
Change in unrealized investment gains (losses) during the period on securities held at the end of the period		$	17,252			$	33,046			$	29,711			$	63,763
Investment gains (losses) on securities sold during the period			6,633				31				(3,948	)			1,001
			23,885				33,077				25,763				64,764
Fixed maturity securities:
Gross realized gains			1				8				14				132
Gross realized losses			(28	)			(25	)			(40	)			(77	)
Other			(1	)			1				(4	)			3,000
		$	23,857			$	33,061			$	25,733			$	67,819

Equity securities gains and losses include unrealized gains and losses from changes in fair values during the period on equity securities we still own, as well as gains and losses on securities we sold during the period. Our proceeds from sales of equity securities were approximately $97.1 billion in the first six months of 2024 and $25.8 billion in 2023. In the preceding table, investment gains and losses on equity securities sold during the period represent the difference between the sales proceeds and the fair value of the equity securities sold at the beginning of the applicable period or, if later, the acquisition date. Taxable gains and losses on equity securities sold are generally the difference between the proceeds from sales and cost. Our sales of equity securities produced taxable gains of $59.6 billion in the second quarter and $73.7 billion in the first six months of 2024 compared to taxable gains of $2.4 billion in the second quarter and $4.6 billion in the first six months of 2023. Other investment gains in the first six months of 2023 included a non-cash gain of approximately $3.0 billion from the remeasurement of our pre-existing 38.6% interest in Pilot through the application of acquisition accounting under GAAP.

Notes to Consolidated Financial Statements

Note 8. Loans and finance receivables

Loans and finance receivables are summarized as follows (in millions).

	June 30, 2024				December 31, 2023
Loans and finance receivables, before allowances and discounts	$	27,792			$	26,289
Allowances for credit losses		(1,015	)			(950	)
Unamortized acquisition discounts and points		(692	)			(658	)
	$	26,085			$	24,681

Loans and finance receivables are principally manufactured home loans, and to a lesser extent, commercial loans and site-built home loans. Reconciliations of the allowance for credit losses on loans and finance receivables for the first six months of 2024 and 2023 follow (in millions).

	First Six Months
	2024				2023
Balance at the beginning of the year	$	950			$	856
Provision for credit losses		116				90
Charge-offs, net of recoveries		(51	)			(34	)
Balance at June 30	$	1,015			$	912

As of June 30, 2024, substantially all manufactured and site-built home loans were evaluated collectively for impairment, and we considered approximately 96% of these loans to be current as to payment status. A summary of performing and non-performing home loans before discounts and allowances by year of loan origination as of June 30, 2024 follows (in millions).

	Origination Year
	2024				2023				2022				2021				2020				Prior				Total
Performing	$	3,479			$	5,207			$	3,814			$	3,189			$	2,468			$	8,715			$	26,872
Non-performing		2				6				8				10				8				43				77
	$	3,481			$	5,213			$	3,822			$	3,199			$	2,476			$	8,758			$	26,949

We also hold a limited number of commercial loans originated or acquired several years ago. The aggregate carrying value of these loans approximated $725 million at June 30, 2024 and $850 million at December 31, 2023. The loans are generally secured by real estate properties or by other assets and are individually evaluated for expected credit losses.

Note 9. Other receivables

Other receivables are comprised of the following (in millions).

	June 30, 2024				December 31, 2023
Insurance and other:
Insurance premiums receivable	$	19,841			$	19,052
Reinsurance recoverables		5,253				7,060
Trade receivables		15,568				14,449
Other		5,979				4,269
Allowances for credit losses		(674	)			(656	)
	$	45,967			$	44,174
Railroad, utilities and energy:
Trade receivables	$	5,809			$	6,034
Other		853				1,228
Allowances for credit losses		(160	)			(176	)
	$	6,502			$	7,086

Aggregate provisions for credit losses in the first six months with respect to receivables in the preceding table were $233 million in 2024 and $278 million in 2023. Charge-offs, net of recoveries, in the first six months were $230 million in 2024 and $280 million in 2023.

Notes to Consolidated Financial Statements

Note 10. Inventories

Inventories of our insurance and other businesses are comprised of the following (in millions).

	June 30, 2024				December 31, 2023
Raw materials	$	5,775			$	6,026
Work in process and other		3,440				3,345
Finished manufactured goods		5,060				4,969
Goods acquired for resale		9,223				9,819
	$	23,498			$	24,159

Inventories, materials and supplies of our railroad, utilities and energy businesses are included in other assets and were approximately $4.3 billion at June 30, 2024 and $4.2 billion as of December 31, 2023.

Note 11. Property, plant and equipment

A summary of property, plant and equipment of our insurance and other businesses follows (in millions).

		June 30, 2024				December 31, 2023
Land, buildings and improvements		$	15,277			$	15,058
Machinery and equipment			28,483				28,010
Furniture, fixtures and other			5,685				5,566
			49,445				48,634
Accumulated depreciation			(27,301	)			(26,604	)
		$	22,144			$	22,030

A summary of property, plant and equipment of our railroad and utilities and energy businesses follows (in millions). The utility generation, transmission and distribution systems and interstate natural gas pipeline assets are owned by regulated public utility and natural gas pipeline subsidiaries.

		June 30, 2024				December 31, 2023
Railroad:
Land, track structure and other roadway		$	72,725			$	71,692
Locomotives, freight cars and other equipment			16,461				16,256
Construction in progress			1,863				1,715
			91,049				89,663
Accumulated depreciation			(20,401	)			(19,464	)
			70,648				70,199
Utilities and energy:
Utility generation, transmission and distribution systems			97,682				96,195
Interstate natural gas pipeline assets			19,603				19,226
Independent power plants and other			14,891				14,781
Land, buildings and improvements			4,719				4,540
Machinery, equipment and other			4,040				3,855
Construction in progress			10,849				9,551
			151,784				148,148
Accumulated depreciation			(42,525	)			(40,731	)
			109,259				107,417
		$	179,907			$	177,616

Depreciation expense for the first six months of 2024 and 2023 is summarized below (in millions).

		First Six Months
		2024				2023
Insurance and other		$	1,226			$	1,158
Railroad, utilities and energy			3,553				3,494
		$	4,779			$	4,652

Notes to Consolidated Financial Statements

Note 12. Equipment held for lease

Equipment held for lease includes railcars, aircraft and other equipment, including over-the-road trailers, intermodal tank containers, cranes, storage units and furniture. Equipment held for lease is summarized below (in millions).

	June 30, 2024				December 31, 2023
Railcars	$	10,148			$	10,031
Aircraft		13,340				12,537
Other		5,683				5,576
		29,171				28,144
Accumulated depreciation		(11,753	)			(11,197	)
	$	17,418			$	16,947

Depreciation expense for equipment held for lease in the first six months was $695 million in 2024 and $623 million in 2023. Fixed and variable operating lease revenues for the second quarter and first six months of 2024 and 2023 are summarized below (in millions).

	Second Quarter								First Six Months
	2024				2023				2024				2023
Fixed lease revenue	$	1,612			$	1,478			$	3,164			$	2,895
Variable lease revenue		696				601				1,366				1,228
	$	2,308			$	2,079			$	4,530			$	4,123

Note 13. Goodwill and other intangible assets

Reconciliations of the changes in the carrying value of goodwill for the first six months of 2024 and for the year ended December 31, 2023 follow (in millions).

		June 30, 2024				December 31, 2023
Balance at the beginning of the year		$	84,626			$	78,119
Business acquisitions			10				7,347
Other, including acquisition period remeasurements and foreign currency translation			(225	)			(840	)
Balance at the end of the period*		$	84,411			$	84,626

——————

*** Net of accumulated goodwill impairments of $*11.1 *billion as of June 30, 2024 and December 31, 2023*.*

Other intangible assets are summarized below (in millions).

		June 30, 2024												December 31, 2023
		Gross carrying amount				Accumulated amortization				Net carrying value				Gross carrying amount				Accumulated amortization				Net carrying value
Insurance and other:
Customer relationships		$	28,274			$	8,214			$	20,060			$	28,305			$	7,901			$	20,404
Trademarks and trade names			5,625				859				4,766				5,619				846				4,773
Patents and technology			5,354				4,294				1,060				5,238				4,109				1,129
Other			4,765				1,863				2,902				4,826				1,805				3,021
		$	44,018			$	15,230			$	28,788			$	43,988			$	14,661			$	29,327
Railroad, utilities and energy:
Customer relationships and contracts		$	4,093			$	920			$	3,173			$	4,092			$	791			$	3,301
Trademarks and trade names			3,592				161				3,431				3,592				98				3,494
Other			1,173				209				964				1,174				156				1,018
		$	8,858			$	1,290			$	7,568			$	8,858			$	1,045			$	7,813

Other intangible assets of the railroad, utilities and energy businesses are included in other assets. Intangible asset amortization expense in the first six months was $892 million in 2024 and $872 million in 2023. Intangible assets with indefinite lives were $18.9 billion as of June 30, 2024 and December 31, 2023 and primarily related to certain customer relationships and trademarks and trade names.

Notes to Consolidated Financial Statements

Note 14. Unpaid losses and loss adjustment expenses

Reconciliations of the changes in unpaid losses and loss adjustment expenses (“claim liabilities”), excluding liabilities under retroactive reinsurance contracts (see Note 15), for each of the six-month periods ended June 30, 2024 and 2023 follow (in millions).

	2024				2023
Balance at the beginning of the year:
Gross liabilities	$	111,082			$	107,472
Reinsurance recoverable on unpaid losses		(4,893	)			(5,025	)
Net liabilities		106,189				102,447
Incurred losses and loss adjustment expenses:
Current accident year		28,359				29,827
Prior accident years		(1,167	)			(1,948	)
Total		27,192				27,879
Paid losses and loss adjustment expenses:
Current accident year		(9,491	)			(9,968	)
Prior accident years		(15,626	)			(16,664	)
Total		(25,117	)			(26,632	)
Foreign currency effect		(110	)			267
Balance at June 30:
Net liabilities		108,154				103,961
Reinsurance recoverable on unpaid losses		4,650				5,069
Gross liabilities	$	112,804			$	109,030

Our claim liabilities under property and casualty insurance and reinsurance contracts are based upon estimates of the ultimate claim costs associated with claim occurrences as of the balance sheet date and include estimates for incurred-but-not-reported (“IBNR”) claims. Incurred losses and loss adjustment expenses related to insured events occurring in the current year (“current accident year”) and events occurring in all prior years (“prior accident years”). Incurred and paid losses and loss adjustment expenses are net of reinsurance recoveries.

We recorded net reductions of estimated ultimate liabilities for prior accident years of $1.2 billion in the first six months of 2024 and $1.9 billion in 2023, which produced corresponding reductions in incurred losses and loss adjustment expenses in those periods. These reductions, as percentages of the net liabilities at the beginning of each year, were 1.1% in 2024 and 1.9% in 2023.

Ultimate liabilities for prior accident years of primary insurance businesses in the first six months were reduced $433 million in 2024 and $1.1 billion in 2023, primarily attributable to lower than expected private passenger auto and medical professional liability losses. In the first six months, ultimate liabilities for prior accident years of property and casualty reinsurance businesses were reduced $734 million in 2024, primarily attributable to lower than expected property losses, and $883 million in 2023, from lower than expected property and casualty losses.

Notes to Consolidated Financial Statements

Note 15. Retroactive reinsurance contracts

Retroactive reinsurance policies provide indemnification of losses and loss adjustment expenses of short-duration insurance contracts with respect to underlying loss events that occurred prior to the contract inception date and may include significant levels of asbestos, environmental and other mass tort claims. Retroactive reinsurance contracts are generally subject to aggregate policy limits and thus, our exposure to such claims under these contracts is likewise limited. Reconciliations of the changes in estimated liabilities for retroactive reinsurance unpaid losses and loss adjustment expenses for each of the six-month periods ended June 30, 2024 and 2023 follow (in millions).

	2024				2023
Balance at the beginning of the year	$	34,647			$	35,415
Incurred losses and loss adjustment expenses:
Current contract year		51				—
Prior contract years		(119	)			15
Total		(68	)			15
Paid losses and loss adjustment expenses		(1,066	)			(1,033	)
Foreign currency effect		(19	)			24
Balance at June 30	$	33,494			$	34,421
Incurred losses and loss adjustment expenses	$	(68	)		$	15
Deferred charge amortization and adjustments		431				416
Incurred losses and loss adjustment expenses included in the Consolidated Statements of Earnings	$	363			$	431

In the preceding table, the classification of incurred losses and loss adjustment expenses is based on the inception dates of the contracts, which reflect when our exposure to losses began. Incurred losses and loss adjustment expenses in the Consolidated Statements of Earnings include changes in estimated liabilities and related deferred charge asset amortization and adjustments arising from the changes in estimated timing and amount of future loss payments. Unamortized deferred charges on retroactive reinsurance contracts were $9.1 billion at June 30, 2024 and $9.5 billion at December 31, 2023.

Note 16. Long-duration insurance contracts

A summary of our long-duration life, annuity and health insurance benefits liabilities as of June 30, 2024 and 2023, disaggregated for our two primary product categories, periodic payment annuity and life and health insurance, follows. Other liabilities include incurred-but-not reported claims and claims in the course of settlement. Amounts are in millions.

	June 30,
	2024				2023
Periodic payment annuity	$	10,378			$	10,820
Life and health		4,167				5,523
Other		2,955				3,292
	$	17,500			$	19,635

Notes to Consolidated Financial Statements

Note 16. Long-duration insurance contracts

Reconciliations of periodic payment annuity and life and health insurance benefits liabilities for the first six months of 2024 and 2023 follow (in millions). The information reflects the changes in discounted present values of expected future policy benefits and expected future net premiums before reinsurance ceded. Net premiums represent the portion of expected gross premiums that are required to provide for future policy benefits and variable expenses.

	Periodic payment annuity								Life and health
	2024				2023				2024				2023
Expected future policy benefits:
Balance at the beginning of the year	$	11,212			$	10,640			$	52,665			$	52,008
Balance at the beginning of the year - original discount rates		11,681				11,549				65,871				63,584
Effect of cash flow assumption changes		—				—				(324	)			10
Effect of actual versus expected experience		4				2				(12,836	)			(411	)
Change in benefits, net		(235	)			(230	)			(943	)			(1,346	)
Interest accrual		273				266				575				852
Foreign currency effect		15				83				(459	)			100
Balance at June 30 - original discount rates		11,738				11,670				51,884				62,789
Effect of changes in discount rate assumptions		(1,360	)			(850	)			(12,739	)			(12,741	)
Balance at June 30	$	10,378			$	10,820			$	39,145			$	50,048
Expected future net premiums:
Balance at the beginning of the year									$	46,916			$	46,129
Balance at the beginning of the year - original discount rates										58,731				56,535
Effect of cash flow assumption changes										(326	)			18
Effect of actual versus expected experience										(11,225	)			(251	)
Change in premiums, net										(876	)			(1,222	)
Interest accrual										507				745
Foreign currency effect										(436	)			83
Balance at June 30 - original discount rates										46,375				55,908
Effect of changes in discount rate assumptions										(11,397	)			(11,383	)
Balance at June 30									$	34,978			$	44,525
Liabilities for future policy benefits:
Balance at June 30	$	10,378			$	10,820			$	4,167			$	5,523
Reinsurance recoverables		—				—				(49	)			(1,549	)
Balance at June 30, net of reinsurance recoverables	$	10,378			$	10,820			$	4,118			$	3,974

Liabilities for future life and health policy benefits and reinsurance recoverables declined in the first six months of 2024, primarily attributable to the commutations of certain life reinsurance contracts. The impacts of these contract commutations on expected future policy benefits and future net premiums were reflected in effects of actual versus expected experience.

Notes to Consolidated Financial Statements

Note 16. Long-duration insurance contracts

Other information relating to our long-duration insurance liabilities as of June 30, 2024 and 2023 follows (dollars in millions).

	Periodic payment annuity								Life and health
	2024				2023				2024				2023
Undiscounted expected future gross premiums	$	—			$	—			$	94,942			$	108,089
Discounted expected future gross premiums		—				—				55,787				65,599
Undiscounted expected future benefits		30,867				31,232				86,253				103,012
Weighted average discount rate		5.7	%			5.3	%			5.2	%			5.0	%
Weighted average accretion rate		4.8	%			4.8	%			2.7	%			3.3	%
Weighted average duration	16 years				18 years				13 years				14 years

Gross premiums earned and interest expense before reinsurance ceded for the first six months of 2024 and 2023 were as follows (in millions).

	Gross premiums								Interest expense
	2024				2023				2024				2023
Periodic payment annuity	$	—			$	—			$	273			$	266
Life and health		1,870				1,644				68				107

Note 17. Notes payable and other borrowings

Notes payable and other borrowings of our insurance and other businesses are summarized below (dollars in millions). The weighted average interest rates and maturity date ranges are based on borrowings as of June 30, 2024.

		Weighted Average Interest Rate				June 30, 2024				December 31, 2023
Insurance and other:
Berkshire Hathaway Inc. (“Berkshire”):
U.S. Dollar denominated due 2025-2047			3.5	%		$	3,745			$	3,740
Euro denominated due 2025-2041			1.1	%			4,895				6,145
Japanese Yen denominated due 2024-2060			0.9	%			9,431				8,896
Berkshire Hathaway Finance Corporation (“BHFC”):
U.S. Dollar denominated due 2027-2052			3.6	%			14,466				14,463
Great Britain Pound denominated due 2039-2059			2.5	%			2,177				2,191
Euro denominated due 2030-2034			1.8	%			1,334				1,374
Other subsidiary borrowings due 2024-2051			4.5	%			4,623				4,696
Subsidiary short-term borrowings			7.2	%			1,269				1,187
						$	41,940			$	42,692

Notes to Consolidated Financial Statements

Note 17. Notes payable and other borrowings

Berkshire parent company borrowings consist of senior unsecured debt. In the first six months of 2024, Berkshire repaid approximately $1.1 billion of maturing senior notes. In April 2024, Berkshire issued ¥263.3 billion (approximately $1.7 billion) of senior notes with interest rates ranging from 0.974% to 2.498% and maturity dates ranging from 2027 to 2054.

Borrowings of BHFC, a wholly-owned finance subsidiary of Berkshire, consist of senior unsecured notes used to fund manufactured housing loans originated or acquired and equipment held for lease of certain subsidiaries. BHFC borrowings are fully and unconditionally guaranteed by Berkshire. Berkshire also guarantees certain debt of other subsidiaries, aggregating approximately $2.7 billion at June 30, 2024. Generally, Berkshire’s guarantee of a subsidiary’s debt obligation is an absolute, unconditional and irrevocable guarantee for the full and prompt payment when due of all payment obligations.

The carrying values of Berkshire and BHFC non-U.S. Dollar denominated senior notes (€5.85 billion, £1.75 billion and ¥1,522 billion par at June 30, 2024) reflect the applicable exchange rates as of each balance sheet date. The effects of changes in foreign currency exchange rates during the period are recorded in earnings as a component of selling, general and administrative expenses. Changes in the exchange rates produced pre-tax gains of $588 million in the second quarter and $1.4 billion in the first six months of 2024 and $555 million in the second quarter and $529 million in the first six months of 2023.

Notes payable and other borrowings of our railroad, utilities and energy businesses are summarized below (dollars in millions). The weighted average interest rates and maturity date ranges are based on borrowings as of June 30, 2024.

		Weighted Average Interest Rate				June 30, 2024				December 31, 2023
Railroad, utilities and energy:
Berkshire Hathaway Energy Company (“BHE”) and subsidiaries:
BHE senior unsecured debt due 2025-2053			4.4	%		$	13,104			$	13,101
Subsidiary and other debt due 2024-2064			4.6	%			43,367				39,072
Short-term borrowings			6.2	%			985				4,148
Pilot Travel Centers (“Pilot”) and subsidiaries			—				—				5,776
Burlington Northern Santa Fe (“BNSF”) and subsidiaries due 2024-2097			4.7	%			24,232				23,482
						$	81,688			$	85,579

BHE subsidiary debt represents amounts issued pursuant to separate financing agreements. Substantially all of the assets of certain BHE subsidiaries are, or may be, pledged or encumbered to support or otherwise secure such debt. These borrowing arrangements generally contain various covenants, including covenants which pertain to leverage ratios, interest coverage ratios and/or debt service coverage ratios. In the first six months of 2024, BHE subsidiaries issued $5.4 billion of term debt with a weighted average interest rate of 5.4% and maturity dates ranging from 2029 to 2055 and BHE and its subsidiaries repaid term debt and short-term borrowings aggregating approximately $4.0 billion.

As of December 31, 2023, Pilot’s borrowings primarily represented secured syndicated loans. In March, 2024, certain Berkshire insurance subsidiaries loaned $5.7 billion to Pilot, which Pilot used to prepay its then outstanding third-party borrowings. BNSF’s borrowings are primarily senior unsecured debentures. In the second quarter of 2024, BNSF issued $1.3 billion of 5.5% debentures due in 2055 and repaid $500 million of maturing debentures. As of June 30, 2024, BHE, BNSF and their subsidiaries were in compliance with all applicable debt covenants. Berkshire does not guarantee any debt, borrowings or lines of credit of BHE, BNSF or their subsidiaries.

Unused lines of credit and commercial paper capacity to support operations and provide additional liquidity for our subsidiaries were approximately $11.3 billion at June 30, 2024, of which approximately $10.1 billion related to BHE and its subsidiaries.

Notes to Consolidated Financial Statements

Note 18. Fair value measurements

Our financial assets and liabilities are summarized below, with fair values shown according to the fair value hierarchy (in millions). The carrying values of cash and cash equivalents, U.S. Treasury Bills, other receivables and accounts payable, accruals and other liabilities are considered to be reasonable estimates of or otherwise approximate the fair values.

		Carrying Value				Fair Value				Level 1				Level 2				Level 3
June 30, 2024
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and agencies		$	4,763			$	4,763			$	4,729			$	34			$	—
Foreign governments			10,419				10,419				10,197				222				—
Corporate bonds			1,386				1,386				—				841				545
Other			234				234				—				234				—
Investments in equity securities			284,871				284,871				274,502				10				10,359
Investments in Kraft Heinz & Occidental common stock			29,616				26,576				26,576				—				—
Loans and finance receivables			26,085				25,555				—				824				24,731
Derivative contract assets (1)			241				241				39				184				18
Derivative contract liabilities (1)			281				281				2				138				141
Notes payable and other borrowings:
Insurance and other			41,940				37,204				—				37,179				25
Railroad, utilities and energy			81,688				74,069				—				74,069				—
December 31, 2023
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and agencies		$	10,269			$	10,269			$	10,234			$	35			$	—
Foreign governments			11,805				11,805				11,559				246				—
Corporate bonds			1,449				1,449				—				860				589
Other			235				235				—				235				—
Investments in equity securities			353,842				353,842				343,358				10				10,474
Investments in Kraft Heinz & Occidental common stock			28,640				26,587				26,587				—				—
Loans and finance receivables			24,681				24,190				—				892				23,298
Derivative contract assets (1)			334				334				39				282				13
Derivative contract liabilities (1)			213				213				7				111				95
Notes payable and other borrowings:
Insurance and other			42,692				39,184				—				39,153				31
Railroad, utilities and energy			85,579				81,036				—				81,036				—

——————

(1)

Assets are included in other assets and liabilities are included in accounts payable, accruals and other liabilities.

The fair values of substantially all of our financial instruments were measured using market or income approaches. The hierarchy for measuring fair value consists of Levels 1 through 3, which are described below.

Level 1 – Inputs represent unadjusted quoted prices for identical assets or liabilities exchanged in active markets.

Level 2 – Inputs include directly or indirectly observable inputs (other than Level 1 inputs) such as quoted prices for similar assets or liabilities exchanged in active or inactive markets; quoted prices for identical assets or liabilities exchanged in inactive markets; other inputs that may be considered in fair value determinations of the assets or liabilities, such as interest rates and yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Pricing evaluations generally reflect discounted expected future cash flows, which incorporate yield curves for instruments with similar characteristics, such as credit ratings, estimated durations and yields for other instruments of the issuer or entities in the same industry sector.

Notes to Consolidated Financial Statements

Note 18. Fair value measurements

Level 3 – Inputs include unobservable inputs used in the measurement of assets and liabilities. Management is required to use its own assumptions regarding unobservable inputs because there is little, if any, market activity in the assets or liabilities and it may be unable to corroborate the related observable inputs. Unobservable inputs require management to make certain projections and assumptions about the information that would be used by market participants in valuing assets or liabilities.

Reconciliations of significant assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the six months ended June 30, 2024 and 2023 follow (in millions).

	Balance at January 1				Gains (losses) in earnings				Acquisitions (dispositions)				Balance at June 30
Investments in equity securities:
2024	$	10,468			$	(114	)		$	—			$	10,354
2023		12,169				(86	)			(1,286	)			10,797

Quantitative information as of June 30, 2024 for the significant assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) follows (dollars in millions).

		Fair Value				Principal Valuation Techniques		Unobservable Inputs		Weighted Average
Investments in equity securities:
Preferred stock		$	8,441			Discounted cash flow		Expected duration		5 years
								Discounts for liquidity and subordination		372 bps
Common stock warrants			1,913			Warrant pricing model		Expected duration		5 years
								Volatility		41%

Investments in equity securities in the preceding table include our investments in certain preferred stock and common stock warrants that do not have readily determinable market values as defined by GAAP. These investments are private placements with contractual terms that restrict transfers and currently prevent us from economically hedging our investments. We applied discounted cash flow techniques in valuing the preferred stock and we made assumptions regarding the expected duration of the investment and the effects of subordination in liquidation. In valuing the common stock warrants, we used a warrant valuation model. While most of the inputs to the warrant model are observable, we made assumptions regarding the expected duration and volatility.

Note 19. Common stock

Changes in Berkshire’s issued, treasury and outstanding common stock during the first six months of 2024 are shown in the table below. In addition to our common stock, 1,000,000 shares of preferred stock are authorized, but none are issued.

	**Class A, $**5 **Par Value (**1,650,000 shares authorized)										**Class B, $**0.0033 **Par Value (**3,225,000,000 shares authorized)
	Issued			Treasury			Outstanding				Issued			Treasury			Outstanding
Balance at December 31, 2023		639,328			(71,553	)		567,775				1,528,152,352			(217,590,844	)		1,310,561,508
Conversions of Class A to Class B common stock		(9,686	)		—			(9,686	)			14,529,000			—			14,529,000
Treasury stock acquired		—			(4,787	)		(4,787	)			—			—			—
Balance at June 30, 2024		629,642			(76,340	)		553,302				1,542,681,352			(217,590,844	)		1,325,090,508

Each Class A common share is entitled to one vote per share. Class B common stock possesses dividend and distribution rights equal to one-fifteen-hundredth (1/1,500) of such rights of Class A common stock. Each Class B common share possesses voting rights equal to one-ten-thousandth (1/10,000) of the voting rights of a Class A share. Unless otherwise required under Delaware General Corporation Law, Class A and Class B common shares vote as a single class. Each share of Class A common stock is convertible, at the option of the holder, into 1,500 shares of Class B common stock. Class B common stock is not convertible into Class A common stock. On an equivalent Class A common stock basis, there were 1,436,696 shares outstanding as of June 30, 2024 and 1,441,483 shares outstanding as of December 31, 2023.

Notes to Consolidated Financial Statements

Note 19. Common stock

Since we have two classes of common stock, we provide earnings per share data on the Consolidated Statements of Earnings for average equivalent Class A shares outstanding and average equivalent Class B shares outstanding. Class B shares are economically equivalent to one-fifteen-hundredth (1/1,500) of a Class A share. Average equivalent Class A shares outstanding represents average Class A shares outstanding plus one-fifteen-hundredth (1/1,500) of the average Class B shares outstanding. Average equivalent Class B shares outstanding represents average Class B shares outstanding plus 1,500 times the average Class A shares outstanding.

Berkshire’s common stock repurchase program permits Berkshire to repurchase its shares any time that Warren Buffett, Berkshire’s Chairman of the Board and Chief Executive Officer, believes that the repurchase price is below Berkshire’s intrinsic value, conservatively determined. The program continues to allow share repurchases in the open market or through privately negotiated transactions and does not specify a maximum number of shares to be repurchased. However, repurchases will not be made if they would reduce the value of Berkshire’s consolidated cash, cash equivalents and U.S. Treasury Bill holdings below $30 billion. The repurchase program does not 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 program.

Note 20. Income taxes

Our consolidated effective income tax rates were 20.0% in the second quarter and 19.5% in the first six months of 2024 compared to 20.3% in the second quarter and 20.2% in the first six months of 2023. Our effective income tax rate normally reflects recurring benefits from dividends-received deductions applicable to investments in certain equity securities and production tax credits related to wind-powered electricity generation placed in service in the U.S. Our periodic effective income tax rate will also vary due to the changes in mix of pre-tax earnings, including realized and unrealized investment gains or losses with respect to our investments in equity securities, the amount of non-deductible goodwill impairment charges and other expenses and the underlying income tax rates applicable in the various taxing jurisdictions.

On August 16, 2022, the Inflation Reduction Act of 2022 (“the 2022 Act”) was signed into law. The 2022 Act contains numerous provisions, including a 15% corporate alternative minimum income tax (“CAMT”) on “adjusted financial statement income,” expanded tax credits for clean energy incentives and a 1% excise tax on corporate stock repurchases. The provisions of the 2022 Act are effective for tax years beginning after December 31, 2022. The extent to which the Company incurs CAMT will depend on the facts and circumstances of the given tax year. We do not expect to incur a CAMT liability in 2024. The Internal Revenue Service and the U.S. Department of Treasury may release additional guidance in the future. We will continue to evaluate the impact of the 2022 Act as more guidance becomes available.

The Organization for Economic Co-operation and Development has issued Pillar Two model rules introducing a new global minimum tax of 15% intended to be effective on January 1, 2024. While the U.S. has not yet adopted the Pillar Two rules, various other governments around the world are enacting legislation. As currently designed, Pillar Two will ultimately apply to our worldwide operations. Considering we do not have material operations in jurisdictions with income tax rates lower than the Pillar Two minimum, these rules are not expected to materially increase our global tax costs. There remains uncertainty as to the final Pillar Two model rules. We will continue to monitor U.S. and global legislative action related to Pillar Two for potential impacts.

Note 21. Accumulated other comprehensive income

A summary of the net changes in after-tax accumulated other comprehensive income attributable to Berkshire Hathaway shareholders for the six months ending June 30, 2024 and 2023 follows (in millions).

	Unrealized gains (losses) on investments				Foreign currency translation				Long-duration insurance contracts				Defined benefit pension plans				Other				Total
First six months of 2024
Balance at the beginning of the year	$	190			$	(5,393	)		$	1,353			$	(97	)		$	184			$	(3,763	)
Other comprehensive income		(22	)			(747	)			684				(1	)			(6	)			(92	)
Balance at the end of the period	$	168			$	(6,140	)		$	2,037			$	(98	)		$	178			$	(3,855	)
First six months of 2023
Balance at the beginning of the year	$	(187	)		$	(6,142	)		$	1,541			$	(552	)		$	288			$	(5,052	)
Other comprehensive income		174				592				71				41				(66	)			812
Balance at the end of the period	$	(13	)		$	(5,550	)		$	1,612			$	(511	)		$	222			$	(4,240	)

Notes to Consolidated Financial Statements

Note 22. Supplemental cash flow information

A summary of supplemental cash flow information follows (in millions).

		First Six Months
		2024				2023
Cash paid during the period for:
Income taxes		$	2,159			$	2,962
Interest:
Insurance and other			671				725
Railroad, utilities and energy			1,797				1,857
Non-cash investing and financing activities:
Liabilities assumed in connection with business acquisitions			19				10,815

Note 23. Contingencies and commitments

We are parties in a variety of legal actions that routinely arise out of the normal course of business, including legal actions seeking to establish liability directly through insurance contracts or indirectly through reinsurance contracts issued by Berkshire subsidiaries. Plaintiffs occasionally seek punitive or exemplary damages. We do not believe that such normal and routine litigation will have a material effect on our financial condition or results of operations.

PacifiCorp, a wholly-owned subsidiary of Berkshire’s 92% owned subsidiary, Berkshire Hathaway Energy Company (“BHE”), operates as a regulated electric utility in Oregon and other Western states. HomeServices of America, Inc. is a wholly-owned subsidiary of BHE. Certain legal matters related to these entities are described below.

PacifiCorp

In September 2020, a severe weather event resulting in high winds, low humidity and warm temperatures, contributed to several major wildfires, which resulted in real and personal property and natural resource damage, personal injuries and loss of life and widespread power outages in Oregon and Northern California. These wildfires spread across certain parts of PacifiCorp’s service territory and surrounding areas across multiple counties in Oregon and California, including Siskiyou County, California; Jackson County, Oregon; Douglas County, Oregon; Marion County, Oregon; Lincoln County, Oregon; and Klamath County, Oregon, burning over 500,000 acres in aggregate. Third-party reports for these wildfires (the “2020 Wildfires”) indicate over 2,000 structures destroyed, including residences; several other structures damaged; multiple individuals injured; and several fatalities.

According to the California Department of Forestry and Fire Protection, a wildfire began on July 29, 2022, in the Oak Knoll Ranger District of the Klamath National Forest in Siskiyou County, California located in PacifiCorp’s service territory (the “2022 Wildfire”) burning over 60,000 acres. Third-party reports indicate that the 2022 Wildfire resulted in 11 structures damaged, 185 structures destroyed, 12 injuries and four fatalities. The 2020 Wildfires and 2022 Wildfire, together, are referred to as the “Wildfires”.

Investigations into the cause and origin of each of the Wildfires are complex and ongoing and have been or are being conducted by various entities, including the U.S. Forest Service, the California Public Utilities Commission, the Oregon Department of Forestry, the Oregon Department of Justice, PacifiCorp and various experts engaged by PacifiCorp.

As of the date of this filing, a significant number of complaints and demands alleging similar claims related to the Wildfires have been filed in Oregon and California, including a class action complaint in Oregon associated with the 2020 Wildfires for which certain jury verdicts were issued as described below. The plaintiffs seek damages for economic losses, noneconomic losses, including mental suffering, emotional distress, personal injury and loss of life, as well as punitive damages, other damages and attorneys’ fees. Several insurance carriers have filed subrogation complaints in Oregon and California with allegations similar to those made in the aforementioned complaints. Additionally, the U.S. and Oregon Departments of Justice have informed PacifiCorp that they are contemplating filing actions against PacifiCorp in connection with certain of the Oregon 2020 Wildfires. PacifiCorp is actively cooperating with the U.S. and Oregon Departments of Justice on resolving these alleged claims through alternative dispute resolution.

As of June 30, 2024, amounts sought in outstanding complaints and demands filed in Oregon and in certain demands in California approximated $3 billion, excluding any doubling or trebling of damages included in the complaints and the mass complaints described below that seek $43 billion. Generally, the complaints filed in California do not specify damages sought and are excluded from this amount.

Based on available information to date, we believe it is probable that losses will be incurred associated with the Wildfires. Final determinations of liability will only be made following the completion of comprehensive investigations, litigation and similar processes.

Notes to Consolidated Financial Statements

Note 23. Contingencies and commitments

On September 30, 2020, a class action complaint against PacifiCorp was filed captioned Jeanyne James et al. v. PacifiCorp et al. (the “James case”), in Oregon Circuit Court in Multnomah County, Oregon (the “Multnomah Court”) in connection with the 2020 Wildfires. In April 2023, a jury trial for the James case with respect to 17 named plaintiffs began in Multnomah Court. In June 2023, the jury issued its verdict finding PacifiCorp liable to the 17 named plaintiffs and to the class with respect to four wildfires. The jury found PacifiCorp’s conduct grossly negligent, reckless and willful as to each plaintiff and the entire class. The jury awarded the 17 named plaintiffs $90 million of damages, including $4 million of economic damages, $68 million of noneconomic damages and $18 million of punitive damages based on a 0.25 multiplier of the economic and noneconomic damages.

In September 2023, the Multnomah Court ordered trial dates for three damages phase trials for the James case, wherein plaintiffs in each of the three damages phase trials would present evidence regarding their damages.

In January 2024, the Multnomah Court entered a limited judgment and money award for the June 2023 James case verdict of $92 million based on the amounts awarded by the jury, as well as doubling of the economic damages and offsetting of insurance proceeds received by plaintiffs. In January 2024, PacifiCorp filed a notice of appeal associated with the June 2023 verdict in the James case, including whether the case can proceed as a class action, and filed a motion to stay further damages phase trials. On February 14, 2024, the Oregon Court of Appeals denied PacifiCorp’s request to stay the damages phase trials. On February 13, 2024, the 17 named plaintiffs filed a notice of cross-appeal as to the January 2024 limited judgment and money award. The appeals process and further actions could take several years.

In January 2024, the jury for the first James case damages phase trial awarded nine plaintiffs $62 million of damages, including $6 million of economic damages and $56 million of noneconomic damages. Subsequently, the Multnomah Court increased the economic damages by $6 million and added $16 million of punitive damages, bringing the aggregate damages awarded to $84 million. In March 2024, the Multnomah Court granted in large part PacifiCorp’s request to offset the damage awards by deducting insurance proceeds received by any of the nine plaintiffs. In April 2024, the Multnomah Court entered a limited judgment and money award of $80 million for the January 2024 James verdict, based on the aggregate damages awarded, offset by insurance proceeds received by plaintiffs.

In March 2024, the jury for the second James case damages phase trial awarded ten plaintiffs $42 million of damages, including $12 million of doubled economic damages and $30 million of noneconomic and punitive damages. In May 2024, the Multnomah Court granted PacifiCorp’s request to offset the damage awards by deducting insurance proceeds received by any of the ten plaintiffs. In June 2024, the Multnomah Court entered a limited judgment and money award of $38 million for the March 2024 James verdict, based on the aggregate amounts awarded, offset by insurance proceeds received by plaintiffs.

The January, April and June 2024 limited judgments created liens against PacifiCorp, attaching a debt for the money awards. In each instance, PacifiCorp posted a supersedeas bond, which stays any effort to seek payment of the judgment pending final resolution of any appeals. Under ORS 82.010, interest at a rate of 9% per annum will accrue on the judgment commencing at the date the judgment was entered until the entire money award is paid, amended or reversed by an appellate court. PacifiCorp amended its January 2024 appeal of the June 2023 James verdict to include the January 2024 jury verdict and further amended its appeal of the June 2023 verdict to include the March 2024 jury verdict. In March 2024, settlement was reached with five commercial timber plaintiffs in the James case, and the jury trial scheduled for April 2024 was cancelled.

In April, May and July 2024, four separate mass complaints against PacifiCorp naming 1,443 individual class members were filed in the Multnomah Court referencing the James case as the lead case. These mass complaints make allegations seeking economic, noneconomic and punitive damages, as well as doubling of economic damages. PacifiCorp believes the magnitude of damages sought by the class members in the James case mass complaints to be of remote likelihood of being awarded based on the amounts awarded in the jury verdicts described above that are being appealed.

A provision for a loss contingency is recorded when it is probable a liability has been incurred and the amount of loss can be reasonably estimated. PacifiCorp evaluates the related range of reasonably estimated losses and records a loss based on its best estimate within that range or the lower end of the range if there is no better estimate.

Estimated probable losses associated with the Wildfires were based on the information available to the date of this filing, including (i) ongoing cause and origin investigations; (ii) ongoing settlement and mediation discussions; (iii) other litigation matters and upcoming legal proceedings; and (iv) the status of the James case. Wildfire estimated losses include estimates for fire suppression costs, real and personal property damages, natural resource damages and noneconomic damages such as personal injury damages and loss of life damages that are considered probable of being incurred and that it is able to reasonably estimate at this time, and which is subject to change as additional relevant information becomes available.

Notes to Consolidated Financial Statements

Note 23. Contingencies and commitments

Through June 30, 2024, PacifiCorp recorded cumulative estimated probable Wildfire losses, before taxes and expected related insurance recoveries, of approximately $2.7 billion, of which $251 million was recorded in the first six months of 2024 and $541 million was recorded in the first six months of 2023. Expected insurance recoveries recorded to date in connection with the Wildfires are $534 million, including $133 million in the first six months of 2023. No further insurance recoveries are expected to be available. Cumulative Wildfire loss payments to date through June 30, 2024 were approximately $775 million and an additional $246 million was paid subsequent to June 30, 2024. To date, PacifiCorp has reached additional settlements associated with the Wildfires totaling $199 million that have yet to be paid. As a result of the settlements, various scheduled trials have been cancelled. Estimated unpaid liabilities for the Wildfires were approximately $1.9 billion at June 30, 2024.

It is reasonably possible PacifiCorp will incur significant additional Wildfire losses beyond the amounts currently accrued; however, it is currently unable to reasonably estimate the range of possible additional losses that could be incurred due to the number of properties and parties involved, including claimants in the class to the James case, the variation in those types of properties and the ultimate outcome of legal actions.

HomeServices of America, Inc.

HomeServices of America, Inc. (“HomeServices”) is currently defending against several antitrust cases, all in federal district courts. In each case, plaintiffs claim HomeServices and certain of its subsidiaries (and in one case BHE) conspired with co-defendants to artificially inflate real estate commissions by following and enforcing multiple listing service (“MLS”) rules that require listing agents to offer a commission split to cooperating agents in order for the property to appear on the MLS (“Cooperative Compensation Rule”). None of the complaints specify damages sought. However, two cases also allege Texas state law deceptive trade practices claims, for which plaintiffs have provided written notice of the damages sought totaling approximately $9 billion by separate notice as required by Texas law.

In one of these cases, Burnett (formerly Sitzer) et al. v. HomeServices of America, Inc. et al. (the “Burnett case”), a jury trial in the U.S. District Court for the Western District of Missouri commenced on October 16, 2023, and the jury returned a verdict for the plaintiffs on October 31, 2023, finding that the named defendants participated in a conspiracy to follow and enforce the Cooperative Compensation Rule, which conspiracy had the purpose or effect of raising, inflating, or stabilizing broker commission rates paid by home sellers. The jury further found that the class plaintiffs had proved damages in the amount of $1.8 billion. Joint and several liability applies for the co-defendants. Federal law authorizes trebling of damages and the award of pre-judgment interest and attorney fees. To date, all co-defendants have reached settlements with the plaintiffs. The U.S District Court approved certain of these settlements in May 2024, which has been appealed to the U.S. Court of Appeals for the Eighth Circuit.

In April 2024, HomeServices agreed to terms with the plaintiffs to settle all claims asserted against HomeServices and its subsidiaries in the Burnett case as part of a proposed nationwide class settlement. The final settlement agreement, which includes scheduled payments over the next four years aggregating $250 million, has yet to be filed with the court and is ultimately subject to court approval. If the settlement is not approved by the court, HomeServices intends to vigorously appeal on multiple grounds the jury’s findings and damage award in the Burnett case, including whether the case can proceed as a class action. The appeals process and further actions could take several years.

Berkshire and certain of its subsidiaries are also involved in other kinds of legal actions, some of which assert or may assert claims or seek to impose fines and penalties. We currently believe that liabilities that may arise as a result of such other pending legal actions will not have a material effect on our consolidated financial condition or results of operations.

Notes to Consolidated Financial Statements

Note 24. Revenues from contracts with customers

The following tables summarize customer contract revenues disaggregated by reportable segment and the source of the revenue for the second quarter and first six months of 2024 and 2023 (in millions). Other revenues, which are not considered to be revenues from contracts with customers under GAAP, are primarily insurance premiums earned, interest, dividend and other investment income and leasing revenues.

		Manufacturing				McLane				Service and Retailing				BNSF				Berkshire Hathaway Energy				Pilot				Insurance, Corporate and other				Total
Three months ending June 30, 2024
Manufactured products:
Industrial and commercial		$	7,459			$	—			$	55			$	—			$	—			$	—			$	—			$	7,514
Building			5,233				—				—				—				—				—				—				5,233
Consumer			4,588				—				—				—				—				—				—				4,588
Grocery and convenience store distribution			—				7,500				—				—				—				—				—				7,500
Food and beverage distribution			—				4,478				—				—				—				—				—				4,478
Auto sales			—				—				2,714				—				—				—				—				2,714
Other retail and wholesale distribution			843				—				3,741				—				—				716				—				5,300
Service			402				245				1,437				5,698				1,204				68				—				9,054
Electricity, natural gas and fuel			—				—				—				—				4,977				12,161				—				17,138
Total			18,525				12,223				7,947				5,698				6,181				12,945				—				63,519
Other revenues			1,282				48				1,975				89				299				39				26,402				30,134
		$	19,807			$	12,271			$	9,922			$	5,787			$	6,480			$	12,984			$	26,402			$	93,653
Six months ending June 30, 2024
Manufactured products:
Industrial and commercial		$	14,669			$	—			$	107			$	—			$	—			$	—			$	—			$	14,776
Building			9,907				—				—				—				—				—				—				9,907
Consumer			8,781				—				—				—				—				—				—				8,781
Grocery and convenience store distribution			—				15,102				—				—				—				—				—				15,102
Food and beverage distribution			—				8,914				—				—				—				—				—				8,914
Auto sales			—				—				5,266				—				—				—				—				5,266
Other retail and wholesale distribution			1,662				—				7,509				—				—				1,330				—				10,501
Service			779				466				2,814				11,316				2,010				132				—				17,517
Electricity, natural gas and fuel			—				—				—				—				10,106				23,940				—				34,046
Total			35,798				24,482				15,696				11,316				12,116				25,402				—				124,810
Other revenues			2,520				89				3,898				108				629				76				51,392				58,712
		$	38,318			$	24,571			$	19,594			$	11,424			$	12,745			$	25,478			$	51,392			$	183,522

Notes to Consolidated Financial Statements

Note 24. Revenues from contracts with customers

		Manufacturing				McLane				Service and Retailing				BNSF				Berkshire Hathaway Energy				Pilot				Insurance, Corporate and other				Total
Three months ending June 30, 2023
Manufactured products:
Industrial and commercial		$	7,221			$	—			$	54			$	—			$	—			$	—			$	—			$	7,275
Building			5,178			—				—				—				—				—					—				5,178
Consumer			4,343			—				—				—				—				—					—				4,343
Grocery and convenience store distribution		—					7,535			—				—				—				—					—				7,535
Food and beverage distribution		—					4,902			—				—				—				—					—				4,902
Auto sales		—				—					2,789			—				—				—					—				2,789
Other retail and wholesale distribution			814			—					4,138			—				—					681				—				5,633
Service			347				213				1,390				5,791				1,217				88				—				9,046
Electricity, natural gas and fuel		—				—				—				—					4,779				13,903				—				18,682
Total			17,903				12,650				8,371				5,791				5,996				14,672				—				65,383
Other revenues			1,171				47				1,738				17				354				61				23,732				27,120
		$	19,074			$	12,697			$	10,109			$	5,808			$	6,350			$	14,733			$	23,732			$	92,503
Six months ending June 30, 2023***
Manufactured products:
Industrial and commercial		$	14,450			$	—			$	119			$	—			$	—			$	—			$	—			$	14,569
Building			9,936			—				—				—				—				—					—				9,936
Consumer			8,378			—				—				—				—				—					—				8,378
Grocery and convenience store distribution		—					15,328			—				—				—				—					—				15,328
Food and beverage distribution		—					9,664			—				—				—				—					—				9,664
Auto sales		—				—					5,354			—				—				—					—				5,354
Other retail and wholesale distribution			1,613			—					8,368			—				—					1,103				—				11,084
Service			701				497				2,716				11,776				2,028				109				—				17,827
Electricity, natural gas and fuel		—				—				—				—					10,070				22,918				—				32,988
Total			35,078				25,489				16,557				11,776				12,098				24,130				—				125,128
Other revenues			2,261				89				3,454				33				691				99				46,141				52,768
		$	37,339			$	25,578			$	20,011			$	11,809			$	12,789			$	24,229			$	46,141			$	177,896

——————

*** Revenues from Pilot are for the five months ending June 30, 2023.

A summary of the transaction price allocated to the significant unsatisfied remaining performance obligations related to contracts with expected durations exceeding one year as of June 30, 2024 and the timing of when the performance obligations are expected to be satisfied follows (in millions).

		Less than 12 months				Greater than 12 months				Total
Electricity, natural gas and fuel		$	3,099			$	19,398			$	22,497
Other sales and service contracts			3,333				5,529				8,862

Notes to Consolidated Financial Statements

Note 25. Business segment data

Our operating businesses include a large and diverse group of insurance, freight rail transportation, utilities and energy, manufacturing, service and retailing businesses. We organize our reportable business segments in a manner that reflects how management views those business activities. Certain businesses are grouped together for segment reporting based upon similar products or product lines and marketing, selling and distribution characteristics, even though those business units are operated under separate local management. We acquired control of Pilot on January 31, 2023. In this presentation, revenues and pre-tax earnings of the Pilot segment in 2023 are for the five months ending June 30. Prior to January 31, 2023, our earnings from Pilot were determined under the equity method and were included in earnings from non-controlled businesses. Revenues and earnings before income taxes by segment for the second quarter and first six months of 2024 and 2023 were as follows (in millions).

	Second Quarter								First Six Months
	2024				2023				2024				2023
Revenues of Operating Businesses
Insurance:
Underwriting:
GEICO	$	10,469			$	9,714			$	20,703			$	19,340
Berkshire Hathaway Primary Group		4,656				4,233				9,197				8,194
Berkshire Hathaway Reinsurance Group		6,828				6,614				13,527				12,823
Investment income		4,077				2,918				7,241				5,310
Total insurance		26,030				23,479				50,668				45,667
BNSF		5,805				5,828				11,465				11,847
BHE		6,492				6,362				12,769				12,813
Pilot		12,999				14,754				25,502				24,262
Manufacturing		19,840				19,102				38,369				37,391
McLane		12,458				12,883				24,933				25,942
Service and retailing		9,947				10,141				19,650				20,072
		93,571				92,549				183,356				177,994
Reconciliation to consolidated amount
Corporate, eliminations and other		82				(46	)			166				(98	)
	$	93,653			$	92,503			$	183,522			$	177,896

	Second Quarter								First Six Months
	2024				2023				2024				2023
Earnings Before Income Taxes of Operating Businesses
Insurance:
Underwriting:
GEICO	$	1,786			$	514			$	3,714			$	1,217
Berkshire Hathaway Primary Group		279				272				765				540
Berkshire Hathaway Reinsurance Group		782				827				1,694				1,058
Investment income		4,068				2,912				7,220				5,297
Total insurance		6,915				4,525				13,393				8,112
BNSF		1,622				1,615				3,141				3,264
BHE		326				624				758				847
Pilot		199				186				269				322
Manufacturing		3,129				3,103				6,043				5,714
McLane		142				129				307				242
Service and retailing		969				1,262				1,877				2,483
		13,302				11,444				25,788				20,984
Reconciliation to consolidated amount
Investment gains (losses)		23,857				33,061				25,733				67,819
Interest expense, not allocated to segments		(119	)			(103	)			(215	)			(217	)
Non-controlled businesses		252				511				745				1,199
Corporate, eliminations and other		845				522				1,792				402
	$	38,137			$	45,435			$	53,843			$	90,187

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

Net earnings attributable to Berkshire Hathaway shareholders for the second quarter and first six months ended June 30, 2024 and 2023 are disaggregated in the table that follows. Amounts are after deducting income taxes and exclude earnings attributable to noncontrolling interests (in millions).

	Second Quarter								First Six Months
	2024				2023				2024				2023
Insurance – underwriting	$	2,263			$	1,247			$	4,861			$	2,158
Insurance – investment income		3,320				2,369				5,918				4,338
BNSF		1,227				1,264				2,370				2,511
Berkshire Hathaway Energy (“BHE”)		655				785				1,372				1,201
Pilot Travel Centers (“Pilot”)		171				114				238				197
Manufacturing, service and retailing		3,209				3,389				6,230				6,371
Non-controlled businesses***		220				535				625				1,103
Investment gains		18,750				25,869				20,230				53,308
Other		533				340				1,206				229
Net earnings attributable to Berkshire Hathaway shareholders	$	30,348			$	35,912			$	43,050			$	71,416

——————

** Includes certain businesses in which Berkshire had between a 20% and 50% ownership interest.*

Through our subsidiaries, we engage in numerous diverse business activities. We manage our operating businesses on an unusually decentralized basis. There are few centralized or integrated business functions. Our senior corporate management team participates in and is ultimately responsible for significant capital allocation decisions, investment activities and the selection of the Chief Executive to head each of the operating businesses. The business segment data (Note 25 to the accompanying Consolidated Financial Statements and Note 26 to the Consolidated Financial Statements included in Form 10-K for the year ended December 31, 2023) should be read in conjunction with this discussion.

Our periodic operating results may be affected in future periods due to impacts of ongoing macroeconomic and geopolitical events, as well as changes in industry or company-specific factors or events. We cannot reliably predict the future economic effects of these factors or events on our businesses.

Insurance underwriting after-tax earnings increased $1.0 billion in the second quarter and $2.7 billion in the first six months of 2024 compared to 2023. Earnings in 2024 benefited from improved operating results at GEICO. We also experienced no significant catastrophe events in the first six months of 2024, while after-tax losses from significant catastrophe events during the first six months of 2023 were approximately $450 million. After-tax earnings from insurance investment income increased $951 million in the second quarter and $1.6 billion in the first six months of 2024 compared to 2023, driven by higher interest income from our short-term investments in U.S. Treasury Bills.

After-tax earnings of BNSF declined 2.9% in the second quarter and 5.6% in the first six months of 2024 compared to 2023. Earnings in 2024 reflected litigation-related charges but benefited from improved employee productivity and lower costs. After-tax earnings of BHE declined $130 million in the second quarter and increased $171 million in the first six months of 2024 compared to 2023. The earnings decrease in the second quarter reflected lower earnings from the U.S. utilities and higher earnings from natural gas pipelines, whereas in the first six months of 2024, earnings increases were generated in the U.S. utilities, natural gas pipelines and other energy businesses, partly offset by lower earnings from the real estate brokerage businesses. BHE’s results in 2024 and 2023 were negatively affected by litigation-related costs.

As disclosed in Note 3 to the accompanying Consolidated Financial Statements, we increased our ownership in Pilot from 38.6% to 80% on January 31, 2023, and further increased our ownership in Pilot to 100% on January 16, 2024. We began consolidating Pilot’s results of operations on February 1, 2023. For the month ended January 31, 2023, earnings from Pilot on our 38.6% interest were determined under the equity method and were included in earnings from non-controlled businesses in the preceding table.

After-tax earnings from our manufacturing, service and retailing businesses decreased 5.3% in the second quarter and 2.2% in the first six months of 2024 compared to 2023. Earnings in 2024 reflected increases at several of our manufacturing businesses, which were more than offset by lower earnings from our service and retailing businesses.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

Investment gains predominantly derive from our investments in equity securities and include significant net unrealized gains and losses from market price changes. We believe that investment gains and losses on these investments, whether realized from dispositions or unrealized from changes in market prices, are generally meaningless in understanding our reported periodic results or evaluating the economic performance of our operating businesses. These gains and losses have caused and will continue to cause significant volatility in our periodic earnings. Investment gains in the first six months of 2023 also included an after-tax non-cash remeasurement gain of approximately $2.4 billion related to our previously held 38.6% interest in Pilot through the application of the acquisition accounting method.

Other earnings included after-tax foreign currency exchange rate gains of $446 million in the second quarter and $1.0 billion in the first six months of 2024 and $465 million in the second quarter and $448 million in the first six months of 2023 related to the non-U.S. Dollar denominated debt issued by Berkshire and Berkshire Hathaway Finance Corporation (“BHFC”). The gains reflected strengthening of the U.S. Dollar.

Insurance—Underwriting

Our management views our insurance business as possessing two distinct activities – underwriting and investing. Underwriting decisions are the responsibility of the unit managers, while investing decisions are the responsibility of Berkshire’s Chairman and CEO, Warren E. Buffett and Berkshire’s corporate investment managers. Accordingly, we evaluate performance of underwriting operations without any allocation of investment income or investment gains and losses. We consider investment income as an integral component of our overall insurance operating results. However, we consider investment gains and losses, whether realized or unrealized, as non-operating. We believe that such gains and losses are not meaningful in understanding the periodic operating results of our insurance businesses.

The timing and magnitude of catastrophe losses can produce significant volatility in our periodic underwriting results, particularly with respect to our property and casualty reinsurance businesses. We currently consider pre-tax incurred losses exceeding $150 million from a current year catastrophic event to be significant. We experienced no significant catastrophe events during the first six months of 2024, while significant events in 2023 derived from a cyclone and floods in New Zealand.

Changes in estimates for unpaid losses and loss adjustment expenses, including amounts established for occurrences in prior years, can also significantly affect our periodic underwriting results. Our periodic underwriting earnings may also be impacted by foreign currency transaction gains and losses arising from the changes in the valuation of non-U.S. Dollar denominated liabilities of our U.S.-based subsidiaries due to foreign currency exchange rate fluctuations.

We provide primary insurance and reinsurance products covering property and casualty risks, as well as life and health risks. Our insurance and reinsurance businesses are GEICO, Berkshire Hathaway Primary Group (“BH Primary”) and Berkshire Hathaway Reinsurance Group (“BHRG”). We strive to produce pre-tax underwriting earnings (defined as premiums earned less insurance losses/benefits incurred and underwriting expenses) over the long term in all business categories, except in our retroactive reinsurance and periodic payment annuity businesses. Time-value-of-money is an important element in establishing prices for retroactive reinsurance and periodic payment annuity policies. We normally receive premiums at the contract inception date, which are then available for investment. Ultimate claim payments can extend for decades and are expected to exceed premiums, producing underwriting losses over the claim settlement periods through deferred charge asset amortization and liability discount accretion charges.

Underwriting results of our insurance businesses are summarized below (dollars in millions).

	Second Quarter								First Six Months
	2024				2023				2024				2023
Pre-tax underwriting earnings:
GEICO	$	1,786			$	514			$	3,714			$	1,217
Berkshire Hathaway Primary Group		279				272				765				540
Berkshire Hathaway Reinsurance Group		782				827				1,694				1,058
Pre-tax underwriting earnings		2,847				1,613				6,173				2,815
Income taxes		584				366				1,312				657
Net underwriting earnings	$	2,263			$	1,247			$	4,861			$	2,158
Effective income tax rate		20.5	%			22.6	%			21.3	%			23.4	%

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Insurance—Underwriting

GEICO

GEICO writes property and casualty policies, primarily private passenger automobile insurance, in all 50 states and the District of Columbia. GEICO markets its policies mainly by direct response methods where most customers apply for coverage directly to the company via the Internet or over the telephone. GEICO also operates an insurance agency that offers primarily homeowners and renters insurance to its auto policyholders. A summary of GEICO’s underwriting results follows (dollars in millions).

	Second Quarter																First Six Months
	2024								2023								2024								2023
	Amount				%				Amount				%				Amount				%				Amount				%
Premiums written	$	10,458							$	9,449							$	21,254							$	19,509
Premiums earned	$	10,469				100.0			$	9,714				100.0			$	20,703				100.0			$	19,340				100.0
Losses and loss adjustment expenses		7,755				74.1				8,192				84.3				15,169				73.3				16,184				83.7
Underwriting expenses		928				8.8				1,008				10.4				1,820				8.8				1,939				10.0
Total losses and expenses		8,683				82.9				9,200				94.7				16,989				82.1				18,123				93.7
Pre-tax underwriting earnings	$	1,786							$	514							$	3,714							$	1,217

GEICO’s pre-tax underwriting earnings in the first six months of 2024 reflected higher average premiums per auto policy, lower claims frequencies and improved operating efficiencies compared to 2023, partially offset by a rise in average claims severities and less favorable development of prior accident years’ claims estimates.

Premiums written increased $1.0 billion (10.7%) in the second quarter and $1.7 billion (8.9%) in the first six months of 2024 compared to 2023, reflecting an increase in average written premiums per auto policy of 11.3%, primarily attributable to rate increases, partially offset by a 4.3% decrease in policies-in-force over the past year. The rate of decline in policies-in-force slowed in the first half of 2024, driven by increased new business and higher retention rates. Premiums earned increased $755 million (7.8%) in the second quarter and $1.4 billion (7.0%) in the first six months of 2024 compared to 2023.

Losses and loss adjustment expenses declined $437 million (5.3%) in the second quarter and $1.0 billion (6.3%) in the first six months of 2024 compared to 2023. GEICO’s loss ratio (losses and loss adjustment expenses to premiums earned) was 74.1% in the second quarter and 73.3% in the first six months of 2024, decreases of 10.2 percentage points and 10.4 percentage points, respectively, compared to 2023. The loss ratio declines reflected the impact of higher average earned premium per auto policy and lower claims frequencies, partially offset by increases in average claims severities and less favorable development of prior accident years’ claims estimates.

Claims frequencies in 2024 declined for property damage (two to three percent range) and collision (six to seven percent range) coverages versus 2023, with bodily injury coverage down slightly. Average claims severities in 2024 increased for property damage (eight to ten percent range), collision (six to eight percent range) and bodily injury (seven to nine percent range) coverages compared to 2023. Losses and loss adjustment expenses in the first six months included reductions in the ultimate loss estimates for prior accident years’ claims of $205 million in 2024 and $888 million in 2023.

Underwriting expenses declined $80 million (7.9%) in the second quarter and $119 million (6.1%) in the first six months of 2024 compared to 2023. GEICO’s expense ratio (underwriting expenses to premiums earned) in the first six months of 2024 was 8.8%, a decrease of 1.2 percentage points compared to 2023. The decline was attributable to improved operating efficiencies and increased operating leverage, partially offset by increased advertising expenses. The earnings from GEICO’s insurance agency (third-party commissions, net of operating expenses) are included as a reduction of underwriting expenses.

Berkshire Hathaway Primary Group

The Berkshire Hathaway Primary Group consists of several independently managed businesses that provide a variety of primarily commercial insurance solutions, including healthcare professional liability, workers’ compensation, automobile, general liability, property and specialty coverages for small, medium and large clients. BH Primary’s insurers include Berkshire Hathaway Specialty Insurance (“BHSI”), RSUI Group Inc. and CapSpecialty, Inc. (“RSUI and CapSpecialty”), Berkshire Hathaway Homestate Companies (“BHHC”), MedPro Group, Berkshire Hathaway GUARD Insurance Companies (“GUARD”), National Indemnity Company (“NICO Primary”), Berkshire Hathaway Direct Insurance Company (“BH Direct”) and U.S. Liability Insurance Company (“USLI”).

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Insurance—Underwriting

Berkshire Hathaway Primary Group

A summary of BH Primary’s underwriting results follows (dollars in millions).

	Second Quarter																First Six Months
	2024								2023								2024								2023
	Amount				%				Amount				%				Amount				%				Amount				%
Premiums written	$	4,931							$	4,757							$	9,424							$	8,915
Premiums earned	$	4,656				100.0			$	4,233				100.0			$	9,197				100.0			$	8,194				100.0
Losses and loss adjustment expenses		3,093				66.4				2,861				67.6				5,905				64.2				5,517				67.3
Underwriting expenses		1,284				27.6				1,100				26.0				2,527				27.5				2,137				26.1
Total losses and expenses		4,377				94.0				3,961				93.6				8,432				91.7				7,654				93.4
Pre-tax underwriting earnings	$	279							$	272							$	765							$	540

Premiums written increased $174 million (3.7%) in the second quarter and $509 million (5.7%) in the first six months of 2024 compared to 2023, primarily due to comparative increases across several of the businesses, partially offset by lower volumes at GUARD. Premiums earned increased 10.0% in the second quarter and 12.2% in the first six months of 2024 versus 2023.

Losses and loss adjustment expenses rose $232 million (8.1%) in the second quarter and $388 million (7.0%) in the first six months of 2024 compared to 2023, reflecting the increases in earned premiums. The loss ratio decreased 1.2 percentage points in the second quarter and 3.1 percentage points in the first six months of 2024 compared to 2023, reflecting lower incurred losses from significant catastrophes and changes in business mix. Incurred losses from significant catastrophes in the first six months of 2023 were approximately $40 million versus none in 2024. Additionally, reductions of liabilities for losses and loss adjustment expenses attributable to prior accident years in the first six months of 2024 were $51 million greater than in 2023.

BH Primary insurers write significant levels of workers’ compensation, commercial and professional liability insurance and the related claim costs may be subject to high severity and long claim-tails. Ultimate claim liabilities could be greater than anticipated due to a variety of factors, including adverse legal and judicial rulings.

Underwriting expenses increased $184 million (16.7%) in the second quarter and $390 million (18.2%) in the first six months of 2024 compared to 2023, reflecting the increases in premiums earned. The underwriting expense ratio increased 1.6 percentage points in the second quarter and 1.4 percentage points in the first six months of 2024 compared to 2023.

Berkshire Hathaway Reinsurance Group

The Berkshire Hathaway Reinsurance Group offers excess-of-loss and quota-share reinsurance coverages on property and casualty risks to insurers and reinsurers worldwide through several subsidiaries, led by National Indemnity Company (“NICO”), General Reinsurance Corporation, General Reinsurance AG and Transatlantic Reinsurance Company. We also write life and health reinsurance coverages through General Re Life Corporation, General Reinsurance AG and Berkshire Hathaway Life Insurance Company of Nebraska (“BHLN”). We assume property and casualty risks under retroactive reinsurance contracts written through NICO and we write periodic payment annuity contracts through BHLN.

A summary of BHRG’s premiums earned and pre-tax underwriting results follows (in millions).

	Second Quarter																First Six Months
	Premiums earned								Pre-tax underwriting earnings (loss)								Premiums earned								Pre-tax underwriting earnings (loss)
	2024				2023				2024				2023				2024				2023				2024				2023
Property/casualty	$	5,608			$	5,325			$	1,022			$	1,124			$	11,043			$	10,474			$	2,030			$	1,514
Life/health		1,220				1,289				73				47				2,449				2,349				181				184
Retroactive reinsurance		—				—				(161	)			(263	)			35				—				(308	)			(458	)
Periodic payment annuity		—				—				(163	)			(211	)			—				—				(314	)			(375	)
Variable annuity		—				—				11				130				—				—				105				193
	$	6,828			$	6,614			$	782			$	827			$	13,527			$	12,823			$	1,694			$	1,058