Item 1. Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED BA****LANCE SHEETS

(dollars in millions)

	June 30, 2025				December 31, 2024
	(Unaudited)
Assets:
Insurance and Other:
Cash and cash equivalents*	$	96,193			$	44,333
Short-term investments in U.S. Treasury Bills		243,605				286,472
Investments in fixed maturity securities		15,084				15,364
Investments in equity securities		267,923				271,588
Equity method investments		25,323				31,134
Loans and finance receivables		28,722				27,798
Other receivables		47,473				43,887
Inventories		24,371				24,008
Property, plant and equipment		30,374				30,071
Equipment held for lease		18,123				17,828
Goodwill		57,096				56,860
Other intangible assets		34,079				34,638
Deferred charges - retroactive reinsurance		8,474				8,797
Other		25,699				24,994
		922,539				917,772
Railroad, Utilities and Energy:
Cash and cash equivalents*		4,293				3,396
Receivables		4,323				4,503
Property, plant and equipment		179,366				175,030
Goodwill		27,155				27,020
Regulatory assets		5,241				5,349
Other		21,051				20,811
		241,429				236,109
Total assets	$	1,163,968			$	1,153,881

——————

*** Includes U.S. Treasury Bills *with maturities of three months or less when purchased of $*67.0 *billion at June 30, 2025 and $*14.4 billion at December 31, 2024.

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CON****SOLIDATED BALANCE SHEETS

(dollars in millions)

	June 30, 2025				December 31, 2024
	(Unaudited)
Liabilities:
Insurance and Other:
Unpaid losses and loss adjustment expenses	$	118,788			$	115,151
Unpaid losses and loss adjustment expenses - retroactive reinsurance contracts		31,733				32,443
Unearned premiums		32,414				30,808
Life, annuity and health insurance benefits		17,865				17,616
Other policyholder liabilities		10,634				10,703
Accounts payable, accruals and other liabilities		36,988				37,489
Payable for purchases of U.S. Treasury Bills		—				12,769
Aircraft repurchase liabilities and unearned lease revenues		9,747				9,356
Notes payable and other borrowings		45,040				44,885
		303,209				311,220
Railroad, Utilities and Energy:
Accounts payable, accruals and other liabilities		18,382				18,226
Regulatory liabilities		7,130				7,033
Notes payable and other borrowings		81,980				79,877
		107,492				105,136
Income taxes, principally deferred		82,991				85,870
Total liabilities		493,692				502,226
Shareholders’ equity:
Common stock		8				8
Capital in excess of par value		35,624				35,665
Accumulated other comprehensive income		(1,895	)			(3,584	)
Retained earnings		713,191				696,218
Treasury stock, at cost		(78,939	)			(78,939	)
Berkshire shareholders’ equity		667,989				649,368
Noncontrolling interests		2,287				2,287
Total shareholders’ equity		670,276				651,655
Total liabilities and shareholders’ equity	$	1,163,968			$	1,153,881

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
	2025			2024			2025			2024
Revenues:
Insurance and Other:
Insurance premiums earned	$	22,195		$	21,953		$	43,999		$	43,427
Sales and service revenues		49,658			51,841			97,473			101,774
Leasing revenues		2,509			2,308			4,940			4,530
Interest, dividend and other investment income		6,002			5,284			11,634			9,622
		80,364			81,386			158,046			159,353
Railroad, Utilities and Energy:
Freight rail transportation revenues		5,718			5,720			11,389			11,357
Utility and energy operating revenues		5,118			5,103			10,612			10,336
Service revenues and other income		1,315			1,444			2,193			2,476
		12,151			12,267			24,194			24,169
Total revenues		92,515			93,653			182,240			183,522
Investment gains (losses)		6,364			23,857			(71	)		25,733
Costs and expenses:
Insurance and Other:
Insurance losses and loss adjustment expenses		14,073			14,107			28,719			27,555
Life, annuity and health benefits		1,132			954			2,200			1,899
Insurance underwriting expenses		4,456			4,046			8,824			7,799
Cost of sales and services		39,616			42,082			78,167			82,874
Cost of leasing		1,887			1,739			3,774			3,430
Selling, general and administrative expenses		7,931			6,033			15,612			11,574
Interest expense		318			336			658			742
		69,413			69,297			137,954			135,873
Railroad, Utilities and Energy:
Freight rail transportation expenses		3,729			3,912			7,602			7,850
Utility and energy cost of sales and other expenses		4,156			4,290			8,247			8,393
Other expenses		1,151			1,232			1,997			2,237
Interest expense		935			894			1,852			1,804
		9,971			10,328			19,698			20,284
Total costs and expenses		79,384			79,625			157,652			156,157
Earnings before income taxes and equity method earnings		19,495			37,885			24,517			53,098
Equity method earnings (losses)		(4,745	)		252			(4,619	)		745
Earnings before income taxes		14,750			38,137			19,898			53,843
Income tax expense		2,293			7,639			2,769			10,513
Net earnings		12,457			30,498			17,129			43,330
Earnings attributable to noncontrolling interests		87			150			156			280
Net earnings attributable to Berkshire shareholders	$	12,370		$	30,348		$	16,973		$	43,050
Net earnings per average equivalent Class A share	$	8,601		$	21,122		$	11,801		$	29,936
Net earnings per average equivalent Class B share*	$	5.73		$	14.08		$	7.87		$	19.96
Average equivalent Class A shares outstanding		1,438,223			1,436,790			1,438,223			1,438,080
Average equivalent Class B shares outstanding		2,157,335,139			2,155,185,283			2,157,335,139			2,157,120,209

——————

*** Net earnings per average equivalent Class B share outstanding are equal to one-fifteen-hundredth of the equivalent Class A amount. See Note 18.

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
	2025				2024				2025				2024
Net earnings	$	12,457			$	30,498			$	17,129			$	43,330
Other comprehensive income:
Unrealized gains (losses) on investments		117				10				158				(25	)
Applicable income taxes		(18	)			(3	)			(29	)			3
Foreign currency translation		1,108				(222	)			1,590				(761	)
Applicable income taxes		(52	)			(8	)			(54	)			(8	)
Long-duration insurance contract discount rate changes		115				508				154				859
Applicable income taxes		(25	)			(108	)			(36	)			(175	)
Defined benefit pension plans		(65	)			(5	)			(105	)			1
Applicable income taxes		15				1				17				(1	)
Other, net		4				17				10				(13	)
Other comprehensive income, net		1,199				190				1,705				(120	)
Comprehensive income		13,656				30,688				18,834				43,210
Comprehensive income attributable to noncontrolling interests		97				145				172				252
Comprehensive income attributable to Berkshire shareholders	$	13,559			$	30,543			$	18,662			$	42,958

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(dollars in millions)

(Unaudited)

	Berkshire shareholders’ equity
	Common stock and capital in excess of par value			Accumulated other comprehensive income			Retained earnings			Treasury stock			Non- controlling interests			Total
2025
Balance at December 31, 2024	$	35,673		$	(3,584	)	$	696,218		$	(78,939	)	$	2,287		$	651,655
Net earnings		—			—			4,603			—			69			4,672
Other comprehensive income, net		—			500			—			—			6			506
Transactions with noncontrolling interests and other		—			—			—			—			(91	)		(91	)
Balance at March 31, 2025	$	35,673		$	(3,084	)	$	700,821		$	(78,939	)	$	2,271		$	656,742
Net earnings		—			—			12,370			—			87			12,457
Other comprehensive income, net		—			1,189			—			—			10			1,199
Transactions with noncontrolling interests and other		(41	)		—			—			—			(81	)		(122	)
Balance at June 30, 2025	$	35,632		$	(1,895	)	$	713,191		$	(78,939	)	$	2,287		$	670,276
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

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
		2025				2024
Cash flows from operating activities:
Net earnings		$	17,129			$	43,330
Adjustments to reconcile net earnings to operating cash flows:
Investment (gains) losses			71				(25,733	)
Depreciation and amortization			6,594				6,366
Discount accretion on investments, principally U.S. Treasury Bills			(6,169	)			(4,475	)
Other			7,826				(999	)
Changes in operating assets and liabilities:
Unpaid losses and loss adjustment expenses			2,144				690
Deferred charges - retroactive reinsurance			323				431
Unearned premiums			1,512				1,735
Receivables and originated loans			(4,234	)			(1,145	)
Inventories			(122	)			456
Other assets			(740	)			(836	)
Other liabilities			(370	)			(3,782	)
Income taxes			(2,976	)			8,130
Net cash flows from operating activities			20,988				24,168
Cash flows from investing activities:
Purchases of equity securities			(7,092	)			(4,306	)
Sales of equity securities			11,592				97,123
Purchases of U.S. Treasury Bills and fixed maturity securities			(249,863	)			(229,505	)
Sales of U.S. Treasury Bills and fixed maturity securities			18,203				15,018
Redemptions and maturities of U.S. Treasury Bills and fixed maturity securities			268,859				120,480
Purchases of property, plant and equipment and equipment held for lease			(9,139	)			(8,928	)
Other			397				(533	)
Net cash flows from investing activities			32,957				(10,651	)
Cash flows from financing activities:
Proceeds from borrowings of insurance and other businesses			723				1,692
Repayments of borrowings of insurance and other businesses			(2,653	)			(6,968	)
Proceeds from borrowings of railroad, utilities and energy businesses			3,570				6,617
Repayments of borrowings of railroad, utilities and energy businesses			(2,569	)			(1,396	)
Changes in short-term borrowings, net			570				(3,161	)
Acquisitions of treasury stock			—				(2,918	)
Other, principally transactions with noncontrolling interests			(754	)			(2,814	)
Net cash flows from financing activities			(1,113	)			(8,948	)
Effects of foreign currency exchange rate changes			20				(141	)
Increase in cash and cash equivalents and restricted cash			52,852				4,428
Cash and cash equivalents and restricted cash at the beginning of the year*			48,376				38,643
Cash and cash equivalents and restricted cash at the end of the second quarter*		$	101,228			$	43,071
** Cash and cash equivalents and restricted cash are comprised of:*
Beginning of the year—
Insurance and Other		$	44,333			$	34,268
Railroad, Utilities and Energy			3,396				3,754
Restricted cash included in other assets			647				621
		$	48,376			$	38,643
End of the second quarter—
Insurance and Other		$	96,193			$	36,968
Railroad, Utilities and Energy			4,293				5,356
Restricted cash included in other assets			742				747
		$	101,228			$	43,071

See accompanying Notes to Consolidated Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

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 subsidiaries and affiliates in which Berkshire holds a controlling financial interest 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. Changes in market prices of our investments in equity securities and the related changes in unrealized gains and losses 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 long-lived assets, goodwill and other intangible assets for impairment, expected credit losses on the 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.

Changes in macroeconomic conditions and geopolitical events, including changes in international trade policies and tariffs, may negatively affect our operating results and the values of our investments in equity securities and of our operating businesses. We are currently unable to reliably predict the nature, timing or magnitude of the potential economic consequences of any such changes or the impacts on our Consolidated Financial Statements.

As described in Note 1 to the Consolidated Financial Statements in the Annual Report, we reclassified the asset, liability, revenue and expense balances of Pilot Travel Centers LLC (“Pilot”) from the Railroad, Utilities and Energy sections to the Insurance and Other sections of our Consolidated Balance Sheets and Statements of Earnings. Accordingly, we reclassified the Pilot balances in the accompanying Consolidated Statements of Earnings for the second quarter and first six months of 2024 from the Railroad, Utilities and Energy section to the Insurance and Other section to conform with current presentations for comparability purposes. These reclassifications had no effect on consolidated revenues, expenses or net earnings from the amounts previously reported. The reclassifications to the amounts previously reported in our Consolidated Statement of Earnings are summarized below (in millions).

	Second Quarter 2024									First Six Months 2024
	As previously reported			Reclassification			As reclassified			As previously reported			Reclassification			As reclassified
Revenues:
Insurance and Other:
Sales and service revenues	$	38,892		$	12,949		$	51,841		$	76,364		$	25,410		$	101,774
Interest, dividend and other investment income		5,249			35			5,284			9,554			68			9,622
Railroad, Utilities and Energy:
Utility and energy operating revenues		18,048			(12,945	)		5,103			35,738			(25,402	)		10,336
Service revenues and other income		1,483			(39	)		1,444			2,552			(76	)		2,476
Costs and expenses:
Insurance and Other:
Cost of sales and services		30,391			11,691			42,082			59,786			23,088			82,874
Selling, general and administrative expenses		5,195			838			6,033			9,968			1,606			11,574
Interest expense		330			6			336			646			96			742
Railroad, Utilities and Energy:
Utility and energy cost of sales and other expenses		16,819			(12,529	)		4,290			33,087			(24,694	)		8,393
Interest expense		900			(6	)		894			1,900			(96	)		1,804

Notes to Consolidated Financial Statements

Note 2. New accounting and financial reporting pronouncements

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 in annual financial statements. ASU 2023-09 may be adopted prospectively or retrospectively and is effective for annual reporting periods beginning after December 15, 2024.

In November 2024, the FASB issued Accounting Standards Update 2024-03, “Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires disclosure in the notes to the financial statements of specific categories underlying certain expense captions on the income statement. ASU 2024-03 may be adopted prospectively or retrospectively and is effective for annual reporting periods beginning after December 15, 2026, with early adoption permitted.

We are evaluating the impacts these pronouncements will have on disclosures in our Consolidated Financial Statements.

Note 3. 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, 2025
U.S. Treasury, U.S. government corporations and agencies		$	3,845			$	13			$	(1	)		$	3,857
Foreign governments			9,674				86				(24	)			9,736
Corporate and other			1,257				237				(3	)			1,491
		$	14,776			$	336			$	(28	)		$	15,084
December 31, 2024
U.S. Treasury, U.S. government corporations and agencies		$	4,447			$	16			$	(4	)		$	4,459
Foreign governments			9,443				16				(97	)			9,362
Corporate and other			1,324				225				(6	)			1,543
		$	15,214			$	257			$	(107	)		$	15,364

As of June 30, 2025, approximately 93% 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, 2025 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		$	11,145			$	2,814			$	586			$	116			$	115			$	14,776
Fair value			11,262				2,788				779				127				128				15,084

Note 4. Investments in equity securities

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

	Cost Basis				Net Unrealized Gains				Fair Value
June 30, 2025
Banks, insurance and finance	$	14,080			$	79,344			$	93,424
Consumer products		13,418				78,057				91,475
Commercial, industrial and other		51,900				31,124				83,024
	$	79,398			$	188,525			$	267,923
December 31, 2024
Banks, insurance and finance	$	15,707			$	75,936			$	91,643
Consumer products		12,658				92,091				104,749
Commercial, industrial and other		47,141				28,055				75,196
	$	75,506			$	196,082			$	271,588

Notes to Consolidated Financial Statements

Note 4. Investments in equity securities

Our investments in equity securities over the years have been concentrated in relatively few companies. The fair value of our five largest holdings at June 30, 2025 and December 31, 2024 represented 67% and 71%, respectively, of the aggregate fair value of our equity securities shown in the preceding tables. The five largest holdings at each date were American Express Company, Apple Inc., Bank of America Corporation, The Coca-Cola Company and Chevron Corporation.

Additionally, we own shares of Occidental Petroleum Corporation (“Occidental”) common stock, which we account for under the equity method. See Note 5. Since 2019, we have also owned non-voting Cumulative Perpetual Preferred Stock of Occidental and Occidental common stock warrants. Our investments in the Occidental preferred stock and Occidental common stock warrants are recorded at fair value and included as equity securities in our Consolidated Balance Sheets, as 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. As of June 30, 2025, our investment in Occidental preferred stock had an aggregate liquidation value of approximately $8.5 billion. To date, Occidental has redeemed approximately $1.5 billion of the aggregate liquidation value due to excess distributions, as defined under the terms of the Occidental preferred stock certificate of designations, to its common stockholders.

The Occidental common stock warrants currently allow us to purchase up to 83.9 million shares of Occidental common stock at an exercise price of $59.59 per share. The warrants are exercisable in whole or in part until one year after the date the preferred stock is fully redeemed.

As of June 30, 2025, we owned 151.6 million shares of American Express Company (“American Express”) common stock representing 21.8% of the outstanding common stock of American Express. 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.

Note 5. Equity method investments

Berkshire and its subsidiaries hold investments that are accounted for pursuant to the equity method. 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, 2025, we owned 27.4% of the outstanding Kraft Heinz common stock and 28.1% of the outstanding Occidental common stock, which excludes the potential effect of the exercise of Occidental’s outstanding 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.

We also own a 50% interest in Berkadia Commercial Mortgage LLC (“Berkadia”). Jefferies Financial Group Inc. (“Jefferies”) owns the other 50% interest. Berkadia engages in mortgage banking, investment sales and servicing commercial/multi-family real estate loans. Berkadia’s commercial paper borrowing capacity (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.

Our investments in Kraft Heinz, Occidental and Berkadia are summarized as follows (in millions).

	Carrying Value								Fair Value
	June 30, 2025				December 31, 2024				June 30, 2025				December 31, 2024
Kraft Heinz	$	8,408			$	13,395			$	8,408			$	9,994
Occidental		16,458				17,287				11,130				13,053
Berkadia		457				452
	$	25,323			$	31,134

Notes to Consolidated Financial Statements

Note 5. Equity method investments

Our equity in earnings and distributions received from equity method investments are as follows (in millions).

	Equity in Earnings																Distributions Received
	Second Quarter								First Six Months								Second Quarter								First Six Months
	2025				2024				2025				2024				2025				2024				2025				2024
Kraft Heinz***	$	(4,991	)		$	27			$	(4,796	)		$	242			$	130			$	130			$	260			$	260
Occidental***		216				200				134				463				64				55				120				96
Berkadia		30				25				43				40				29				14				38				18
	$	(4,745	)		$	252			$	(4,619	)		$	745			$	223			$	199			$	418			$	374

——————

*** We report our equity earnings in Occidental*’s earnings on a one-quarter lag and, as indicated below, in the second quarter of 2025 we began reporting our equity earnings in Kraft Heinz’s earnings on a one-quarter lag**.*

Kraft Heinz common stock is publicly traded and its fair values shown on the preceding page were based upon quoted market prices. In evaluating our investment in Kraft Heinz for other-than-temporary impairment in the second quarter of 2025, 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, and the operating results and financial condition of the company. We also considered certain changes in circumstances that occurred in the second quarter of 2025. Berkshire’s representatives on the Kraft Heinz Board of Directors stepped down on May 19, 2025, and the timing and extent of financial information Berkshire receives is now limited to the information that Kraft Heinz makes available to the public. On May 20, 2025, Kraft Heinz announced that it was evaluating potential strategic transactions to enhance shareholder value, although Kraft Heinz indicated there was no assurance that its process will result in a transaction or assurance to its outcome or timing. Given these factors, as well as prevailing economic and other uncertainties, we concluded that the unrealized loss, represented by the difference between the carrying value of our investment and its fair value, was other-than-temporary. Accordingly, in the second quarter we recorded a pre-tax impairment loss of approximately $5.0 billion as a component of our equity in the earnings of Kraft Heinz, which reduced the carrying value of our investment in Kraft Heinz to fair value.

As the timing and extent of financial information we receive from Kraft Heinz is now limited to the information Kraft Heinz makes publicly available, we believe that such information will no longer be available in time for concurrent inclusion in our Consolidated Financial Statements. Therefore, beginning with our second quarter of 2025, we are recognizing the equity method effects attributable to our investment in Kraft Heinz on a one-quarter lag. The carrying value of our investment in Kraft Heinz at June 30, 2025 was less than our proportionate share of Kraft Heinz shareholders’ equity.

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

	March 29, 2025				December 28, 2024
Assets	$	90,274			$	88,287
Liabilities		40,669				38,962

	Quarter Ended March 29, 2025				Quarter Ended June 29, 2024				Six Months Ended June 29, 2024
Sales	$	5,999			$	6,476			$	12,887
Net earnings attributable to common shareholders		712				102				903

Occidental common stock is also publicly traded and its fair values shown on the preceding page were based upon quoted market prices. As of June 30, 2025, the excess of the carrying value over the fair value of our investment in Occidental common stock was $5.3 billion (or 32% of our carrying value). In evaluating the investment in Occidental for other-than-temporary impairment as of June 30, 2025, 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, and the operating results and financial condition of the company, as well as our current expectations and other factors. Based on the prevailing facts and circumstances, we concluded the recognition of an impairment charge in earnings for Occidental was not required as of June 30, 2025. However, our current expectations and intentions concerning this investment may change in the future, which may result in the recognition of an impairment loss at that time. Our carrying value in Occidental common stock as of June 30, 2025 exceeded our share of Occidental common shareholders’ equity as of March 31, 2025 by approximately $9.0 billion.

Notes to Consolidated Financial Statements

Note 5. Equity method investments

Summarized financial information of Occidental follows (in millions).

	March 31, 2025				September 30, 2024
Assets	$	84,967			$	85,803
Liabilities		49,862				50,869

	Quarter Ended March 31,								Six Months Ended March 31,
	2025				2024				2025				2024
Total revenues and other income	$	6,843			$	6,010			$	13,680			$	13,539
Net earnings attributable to common shareholders		766				718				469				1,747

Note 6. Investment gains (losses)

Investment gains (losses) are summarized as follows (in millions).

	Second Quarter								First Six Months
	2025				2024				2025				2024
Investment gains (losses):
Equity securities:
Increase in unrealized investment gains during the period on securities held at the end of the period	$	7,593			$	17,252			$	1,236			$	29,711
Investment gains (losses) on securities sold during the period		(370	)			6,633				(417	)			(3,948	)
		7,223				23,885				819				25,763
Fixed maturity securities:
Gross realized gains		8				1				16				14
Gross realized losses		(8	)			(28	)			(55	)			(40	)
Other		(859	)			(1	)			(851	)			(4	)
	$	6,364			$	23,857			$	(71	)		$	25,733

Equity securities gains and losses include unrealized gains and losses from changes in fair values during the period on equity securities we owned at the end of the period, as well as gains and losses on securities we sold during the period. Proceeds from sales of equity securities were approximately $11.6 billion in the first six months of 2025 and $97.1 billion in 2024. 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 purchase date. Taxable gains and losses on equity securities sold are generally the difference between the proceeds from sales and cost at the acquisition date. Equity securities sold produced taxable gains of $5.3 billion in the second quarter and $8.4 billion in the first six months of 2025 compared to gains of $59.6 billion in the second quarter and $73.7 billion in the first six months of 2024.

Note 7. Loans and finance receivables

Loans and finance receivables are principally manufactured home loans, and to a lesser extent, commercial loans and site-built home loans and are summarized as follows (in millions).

	June 30, 2025				December 31, 2024
Loans and finance receivables, before allowances and discounts	$	30,819			$	29,700
Allowances for credit losses		(1,307	)			(1,134	)
Unamortized acquisition discounts and points		(790	)			(768	)
	$	28,722			$	27,798

Reconciliations of the allowance for credit losses on loans and finance receivables follow (in millions).

	2025				2024
Balance at the beginning of the year	$	1,134			$	950
Provision for credit losses		253				116
Charge-offs, net of recoveries		(80	)			(51	)
Balance at June 30	$	1,307			$	1,015

Notes to Consolidated Financial Statements

Note 7. Loans and finance receivables

As of June 30, 2025, substantially all manufactured and site-built home loans were evaluated collectively for impairment, and we considered approximately 97% 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, 2025 follows (in millions).

	Origination Year
	2025				2024				2023				2022				2021				Prior				Total
Performing	$	3,193			$	5,651			$	4,738			$	3,499			$	2,911			$	9,899			$	29,891
Non-performing		2				15				19				18				16				62				132
	$	3,195			$	5,666			$	4,757			$	3,517			$	2,927			$	9,961			$	30,023

Note 8. Other receivables

Other receivables are summarized as follows (in millions).

	June 30, 2025				December 31, 2024
Insurance and other:
Insurance premiums receivable	$	20,504			$	18,548
Reinsurance recoverables		5,270				5,177
Trade receivables		17,156				15,638
Other		5,235				5,199
Allowances for credit losses		(692	)			(675	)
	$	47,473			$	43,887
Railroad, utilities and energy:
Trade receivables	$	3,727			$	3,764
Other		686				862
Allowances for credit losses		(90	)			(123	)
	$	4,323			$	4,503

Provisions for credit losses with respect to other receivables were $245 million in the first six months of 2025 compared to $233 million in 2024. Charge-offs, net of recoveries, were $268 million in the first six months of 2025 compared to $230 million in 2024.

Note 9. Inventories

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

	June 30, 2025				December 31, 2024
Raw materials and supplies	$	5,588			$	5,421
Work in process and other		3,393				3,150
Finished manufactured goods		5,216				4,898
Goods acquired for resale		10,174				10,539
	$	24,371			$	24,008

Inventories, materials and supplies of our railroad, utilities and energy businesses are included in other assets and were approximately $3.1 billion as of June 30, 2025 and $3.0 billion as of December 31, 2024.

Note 10. Property, plant and equipment

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

		June 30, 2025				December 31, 2024
Land, buildings and improvements		$	21,287			$	20,735
Machinery and equipment			33,235				32,475
Furniture, fixtures and other			5,915				5,501
			60,437				58,711
Accumulated depreciation			(30,063	)			(28,640	)
		$	30,374			$	30,071

Notes to Consolidated Financial Statements

Note 10. Property, plant and equipment

A summary of property, plant and equipment of our railroad, 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, 2025				December 31, 2024
Railroad:
Land, track structure and other roadway		$	75,413			$	74,093
Locomotives, freight cars and other equipment			15,513				15,766
Construction in progress			2,041				1,813
			92,967				91,672
Accumulated depreciation			(21,459	)			(20,411	)
			71,508				71,261
Utilities and energy:
Utility generation, transmission and distribution systems			106,067				103,015
Interstate natural gas pipeline assets			20,432				20,237
Independent power plants and other			15,578				14,840
Construction in progress			10,892				8,793
			152,969				146,885
Accumulated depreciation			(45,111	)			(43,116	)
			107,858				103,769
		$	179,366			$	175,030

Property, plant and equipment depreciation expense for the first six months of 2025 and 2024 is summarized below (in millions).

		2025				2024
Insurance and other		$	1,568			$	1,535
Railroad, utilities and energy			3,414				3,244
		$	4,982			$	4,779

Note 11. 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, 2025				December 31, 2024
Railcars	$	10,299			$	10,137
Aircraft		14,894				14,201
Other		5,713				5,686
		30,906				30,024
Accumulated depreciation		(12,783	)			(12,196	)
	$	18,123			$	17,828

Depreciation expense on equipment held for lease in the first six months was $749 million in 2025 and $695 million in 2024. Fixed and variable operating lease revenues are summarized below (in millions).

	Second Quarter								First Six Months
	2025				2024				2025				2024
Fixed lease revenue	$	1,737			$	1,612			$	3,420			$	3,164
Variable lease revenue		772				696				1,520				1,366
	$	2,509			$	2,308			$	4,940			$	4,530

Notes to Consolidated Financial Statements

Note 12. Goodwill and other intangible assets

Reconciliations of the changes in the carrying value of goodwill for the first six months of 2025 and for the year ended December 31, 2024 follow (in millions).

	June 30, 2025				December 31, 2024
Balance at the beginning of the year*	$	83,880			$	84,626
Business acquisitions		61				87
Other, including foreign currency translation		310				(833	)
Balance at the end of the period*	$	84,251			$	83,880

——————

*** *Net of accumulated goodwill impairments of $*11.5 billion as of June 30, 2025 and December 31, 2024 and $11.1 billion as of December 31, 2023.

Other intangible assets are summarized below (in millions).

	June 30, 2025										December 31, 2024
	Gross carrying amount			Accumulated amortization			Net carrying value				Gross carrying amount			Accumulated amortization			Net carrying value
Insurance and other:
Customer relationships	$	30,939		$	9,224		$	21,715			$	30,941		$	8,840		$	22,101
Trademarks and trade names		9,031			1,111			7,920				9,007			1,041			7,966
Patents and technology		5,572			4,579			993				5,375			4,359			1,016
Other		5,607			2,156			3,451				5,551			1,996			3,555
	$	51,149		$	17,070		$	34,079			$	50,874		$	16,236		$	34,638
Railroad, utilities and energy:
Customer relationships and contracts	$	1,540		$	762		$	778			$	1,553		$	728		$	825
Other		443			130			313				437			126			311
	$	1,983		$	892		$	1,091			$	1,990		$	854		$	1,136

Intangible asset amortization expense in the first six months was $863 million in 2025 and $892 million in 2024. Intangible assets with indefinite lives were $18.9 billion as of June 30, 2025 and December 31, 2024 and primarily related to certain customer relationships and trademarks and trade names. Railroad, utilities and energy intangible assets are included in other assets.

Note 13. 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 14) follow (in millions).

	2025				2024
Balance at the beginning of the year:
Gross liabilities	$	115,151			$	111,082
Reinsurance recoverable on unpaid losses		(4,593	)			(4,893	)
Net liabilities		110,558				106,189
Losses and loss adjustment expenses incurred:
Current accident year		28,607				28,359
Prior accident years		(240	)			(1,167	)
Total		28,367				27,192
Losses and loss adjustment expenses paid:
Current accident year		(9,253	)			(9,491	)
Prior accident years		(16,283	)			(15,626	)
Total		(25,536	)			(25,117	)
Foreign currency effect		712				(110	)
Balance at June 30:
Net liabilities		114,101				108,154
Reinsurance recoverable on unpaid losses		4,687				4,650
Gross liabilities	$	118,788			$	112,804

Notes to Consolidated Financial Statements

Note 13. Unpaid losses and loss adjustment expenses

Our claim liabilities under property and casualty insurance and reinsurance contracts are based upon estimates of the ultimate claim costs associated with claim events that have occurred as of the balance sheet date and include estimates for incurred-but-not-reported (“IBNR”) claims. Losses and loss adjustment expenses incurred in the preceding table related to events occurring in the current year (“current accident year”) and events occurring in all prior years (“prior accident years”). Losses and loss adjustment expenses incurred and paid are net of reinsurance recoveries. Current accident year incurred losses from significant catastrophe events (losses exceeding $150 million per event) in the first six months of 2025 were $1.1 billion from the Southern California wildfires, which occurred in the first quarter. We experienced no significant catastrophe events in the first six months of 2024.

We recorded net reductions of estimated ultimate claim liabilities for prior accident years’ claims of $240 million in the first six months of 2025 and $1.2 billion in the first six months of 2024, which reduced losses and loss adjustment expenses incurred in those periods. These reductions, as percentages of the net liabilities at the beginning of each year, were 0.2% in 2025 and 1.1% in 2024.

Our primary insurance businesses recorded net increases in prior accident years’ estimated ultimate claim liabilities of $266 million in the first six months of 2025, primarily attributable to increases for casualty exposures, partly offset by decreases for property coverages. Our primary insurance businesses reduced estimated losses for prior accident years in the first six months of 2024 by $433 million, which derived primarily from reduced estimates for property and medical professional liability coverages. Our reinsurance businesses recorded net reductions of estimated ultimate claim liabilities for prior accident years in the first six months of $506 million in 2025 and $734 million in 2024. These reductions were primarily attributable to lower estimates for property coverages.

Note 14. 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. Exposures include significant asbestos, environmental and other mass tort claims. Retroactive reinsurance contracts are generally subject to aggregate policy limits and 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 follow (in millions).

	2025				2024
Balance at the beginning of the year	$	32,443			$	34,647
Losses and loss adjustment expenses incurred	29					(68	)
Losses and loss adjustment expenses paid		(867	)			(1,066	)
Foreign currency effect		128				(19	)
Balance at June 30	$	31,733			$	33,494
Losses and loss adjustment expenses incurred	$	29			$	(68	)
Deferred charge adjustments		323				431
Losses and loss adjustment expenses incurred, including deferred charge adjustments	$	352			$	363

We classify incurred and paid losses and loss adjustment expenses based on the inception dates of the contracts, which reflect when our exposure to losses began. Substantially all of the losses and loss adjustment expenses incurred and paid related to contracts written in prior years. Losses and loss adjustment expenses incurred include changes in estimated ultimate liabilities and related adjustments to deferred charge assets arising from the changes in the estimated timing and amount of loss payments. Deferred charge assets on retroactive reinsurance contracts were $8.5 billion at June 30, 2025 and $8.8 billion at December 31, 2024.

Note 15. Long-duration insurance contracts

A summary of our long-duration life, annuity and health insurance benefits liabilities disaggregated by our principal product categories follows (in millions).

	June 30,
	2025				2024
Periodic payment annuity (“Annuities”)	$	10,457			$	10,378
Life and health		4,504				4,167
Other		2,904				2,955
	$	17,865			$	17,500

Notes to Consolidated Financial Statements

Note 15. Long-duration insurance contracts

Reconciliations of the liabilities for each of our principal product categories 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.

	Annuities								Life and health
	2025				2024				2025				2024
Expected future policy benefits:
Balance at the beginning of the year	$	10,276			$	11,212			$	43,784			$	52,665
Balance at the beginning of the year - original discount rates		11,757				11,681				55,170				65,871
Effect of cash flow assumption changes		—				—				(98	)			(324	)
Effect of actual versus expected experience		(20	)			4				246				(12,836	)
Change in benefits, net		(240	)			(235	)			(887	)			(943	)
Interest accrual		277				273				646				575
Foreign currency effect		136				15				1,489				(459	)
Balance at June 30 - original discount rates		11,910				11,738				56,566				51,884
Effect of changes in discount rate assumptions		(1,453	)			(1,360	)			(12,232	)			(12,739	)
Balance at June 30	$	10,457			$	10,378			$	44,334			$	39,145
Expected future net premiums:
Balance at the beginning of the year									$	39,294			$	46,916
Balance at the beginning of the year - original discount rates										49,500				58,731
Effect of cash flow assumption changes										(66	)			(326	)
Effect of actual versus expected experience										204				(11,225	)
Change in premiums, net										(884	)			(876	)
Interest accrual										579				507
Foreign currency effect										1,395				(436	)
Balance at June 30 - original discount rates										50,728				46,375
Effect of changes in discount rate assumptions										(10,898	)			(11,397	)
Balance at June 30									$	39,830			$	34,978
Liabilities for future policy benefits:
Balance at June 30	$	10,457			$	10,378			$	4,504			$	4,167
Reinsurance recoverables		—				—				(51	)			(49	)
Balance at June 30, net of reinsurance recoverables	$	10,457			$	10,378			$	4,453			$	4,118

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

Other information relating to our long-duration insurance liabilities follows (dollars in millions).

	Annuities								Life and health
	June 30,								June 30,
	2025				2024				2025				2024
Undiscounted expected future gross premiums	$	—			$	—			$	103,580			$	94,942
Discounted expected future gross premiums		—				—				60,951				55,787
Undiscounted expected future benefits		30,670				30,867				94,173				86,253
Weighted average discount rate		5.7	%			5.7	%			5.2	%			5.2	%
Weighted average accretion rate		4.8	%			4.8	%			2.7	%			2.7	%
Weighted average duration	16 years				16 years				13 years				13 years

Notes to Consolidated Financial Statements

Note 15. Long-duration insurance contracts

Gross premiums earned and interest expense before reinsurance ceded for the first six months of 2025 and 2024 were as follows (in millions).

	Gross premiums								Interest expense
	2025				2024				2025				2024
Annuities	$	—			$	—			$	277			$	273
Life and health		1,961				1,870				67				68

Note 16. 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, 2025.

		Weighted Average Interest Rate				June 30, 2025				December 31, 2024
Insurance and other:
Berkshire Hathaway Inc. (“Berkshire”):
U.S. Dollar denominated due 2026-2047			3.5	%		$	3,546			$	3,749
Euro denominated due 2027-2041			1.4	%			4,214				4,733
Japanese Yen denominated due 2025-2060			1.1	%			14,101				12,609
Berkshire Hathaway Finance Corporation (“BHFC”):
U.S. Dollar denominated due 2027-2052			3.6	%			14,472				14,469
Great Britain Pound denominated due 2039-2059			2.5	%			2,367				2,156
Euro denominated due 2030-2034			1.8	%			1,469				1,290
Other subsidiary borrowings due 2025-2051			5.0	%			3,572				4,564
Short-term subsidiary borrowings			6.3	%			1,299				1,315
						$	45,040			$	44,885

Berkshire borrowings consist of senior unsecured debt. Berkshire repaid approximately $1.6 billion of maturing debt in the first six months of 2025. In April 2025, Berkshire issued ¥90 billion ($632 million) of senior notes with maturity dates ranging from 2028 to 2055 and a weighted average interest rate of 1.637%. Additionally, at the end of July 2025, Berkshire issued ¥151.5 billion ($1.0 billion) of senior notes with maturity dates ranging from 2030 to 2040 and a weighted average interest rate of 2.306%.

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 $1.7 billion at June 30, 2025. 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 (€4.85 billion, £1.75 billion and ¥2,036 billion par at June 30, 2025) reflect the applicable exchange rates as of each balance sheet date. The effects of changes in foreign currency exchange rates during the period on these borrowings are recorded in earnings as a component of selling, general and administrative expenses. Changes in the exchange rates produced pre-tax losses of $1.2 billion in the second quarter and $2.1 billion in the first six months of 2025 and pre-tax gains of $588 million in the second quarter and $1.4 billion in the first six months of 2024.

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, 2025.

		Weighted Average Interest Rate				June 30, 2025				December 31, 2024
Railroad, utilities and energy:
Berkshire Hathaway Energy Company (“BHE”) and subsidiaries:
BHE senior unsecured debt due 2028-2053			4.4	%		$	11,459			$	13,107
Subsidiary and other debt due 2025-2064			4.7	%			44,982				42,150
Short-term borrowings			5.1	%			1,687				1,123
Burlington Northern Santa Fe (“BNSF”) and subsidiaries due 2025-2097			4.8	%			23,852				23,497
						$	81,980			$	79,877

Notes to Consolidated Financial Statements

Note 16. Notes payable and other borrowings

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 those which pertain to leverage ratios, interest coverage ratios and/or debt service coverage ratios. In the first six months of 2025, BHE subsidiaries issued $2.7 billion of term debt, with a weighted average interest rate of 6.5% and maturity dates ranging from 2035 to 2055, and BHE and its subsidiaries repaid term debt of $2.0 billion and increased short-term borrowings by $564 million.

BNSF’s borrowings are primarily senior unsecured debentures. In the first six months of 2025, BNSF repaid approximately $530 million of term debt and in June 2025, issued $900 million of 5.8% debentures due in 2056. As of June 30, 2025, 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 and available lines of credit and commercial paper capacity to support operations and provide additional liquidity for our subsidiaries were approximately $11.0 billion at June 30, 2025, of which approximately $9.8 billion related to BHE and its subsidiaries.

Note 17. 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, 2025
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and agencies	$	3,857			$	3,857			$	3,823			$	34			$	—
Foreign governments		9,736				9,736				9,601				135				—
Corporate and other		1,491				1,491				—				1,015				476
Investments in equity securities		267,923				267,923				258,484				10				9,429
Investments in Kraft Heinz & Occidental common stock		24,866				19,538				19,538				—				—
Loans and finance receivables		28,722				28,744				—				396				28,348
Derivative contract assets (1)		197				197				29				152				16
Derivative contract liabilities (1)		218				218				11				105				102
Notes payable and other borrowings:
Insurance and other		45,040				40,319				—				40,284				35
Railroad, utilities and energy		81,980				75,387				—				75,387				—
December 31, 2024
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and agencies	$	4,459			$	4,459			$	4,425			$	34			$	—
Foreign governments		9,362				9,362				9,199				163				—
Corporate and other		1,543				1,543				—				1,041				502
Investments in equity securities		271,588				271,588				261,910				10				9,668
Investments in Kraft Heinz & Occidental common stock		30,682				23,047				23,047				—				—
Loans and finance receivables		27,798				27,579				—				810				26,769
Derivative contract assets (1)		201				201				33				158				10
Derivative contract liabilities (1)		234				234				15				143				76
Notes payable and other borrowings:
Insurance and other		44,885				40,181				—				40,158				23
Railroad, utilities and energy		79,877				72,506				—				72,506				—

——————

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

Notes to Consolidated Financial Statements

Note 17. Fair value measurements

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.

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) follow (in millions).

	Balance at January 1				Gains (losses) in earnings				Balance at June 30
Investments in equity securities:
2025	$	9,663			$	(240	)		$	9,423
2024		10,468				(114	)			10,354

Quantitative information as of June 30, 2025 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	$	8,635			Discounted cash flow		Expected duration		4 years
							Discounts for liquidity and subordination		325 bps
Common stock warrants		790			Warrant pricing model		Expected duration		5 years
							Volatility		42%

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 and are not traded in securities markets. 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 illiquidity and 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 18. Common stock

Changes in shares of Berkshire’s common stock are shown in the table below. In addition to our common stock, one million shares of preferred stock are authorized and none are issued.

	**Class A, $**5 **Par Value (**1.65 million shares authorized)										**Class B, $**0.0033 **Par Value (**3.225 billion shares authorized)
	Issued			Treasury			Outstanding				Issued			Treasury			Outstanding
Balance at December 31, 2024		623,902			(76,340	)		547,562				1,551,291,352			(215,299,213	)		1,335,992,139
Conversions of Class A to Class B common stock		(16,093	)		—			(16,093	)			24,139,500			—			24,139,500
Balance at June 30, 2025		607,809			(76,340	)		531,469				1,575,430,852			(215,299,213	)		1,360,131,639

Notes to Consolidated Financial Statements

Note 18. Common stock

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 1,438,223 shares outstanding as of June 30, 2025 and December 31, 2024.

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. 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 allows 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. Berkshire is not obligated to repurchase any specific dollar amount or number of Class A or Class B shares under the program and there is no expiration date to the program. There were no share repurchases during the first six months of 2025.

Note 19. Income taxes

Our consolidated effective income tax rates were 15.5% in the second quarter and 13.9% in the first six months of 2025 compared to 20.0% in the second quarter and 19.5% in the first six months of 2024. 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 on 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.

The Organization for Economic Co-operation and Development issued Pillar Two model rules introducing a global minimum tax of 15%. While the U.S. has not adopted the Pillar Two rules, various countries are enacting legislation to adopt the rules. We do not currently have material operations in jurisdictions with income tax rates lower than the Pillar Two minimum tax rate, and we do not currently expect these rules will materially increase our global tax costs. There remains uncertainty as to the final Pillar Two rules.

Note 20. Accumulated other comprehensive income

A summary of the net changes in after-tax accumulated other comprehensive income attributable to Berkshire shareholders follows (in millions).

	Unrealized investment gains (losses)			Foreign currency translation			Long-duration insurance contracts			Defined benefit pension plans			Other			Total
2025
Balance at the beginning of the year	$	117		$	(7,039	)	$	2,015		$	1,148		$	175		$	(3,584	)
Other comprehensive income		129			1,521			118			(87	)		8			1,689
Balance at June 30, 2025	$	246		$	(5,518	)	$	2,133		$	1,061		$	183		$	(1,895	)
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 June 30, 2024	$	168		$	(6,140	)	$	2,037		$	(98	)	$	178		$	(3,855	)

Notes to Consolidated Financial Statements

Note 21. Supplemental cash flow information

A summary of supplemental cash flow information for the first six months of 2025 and 2024 follows (in millions).

	2025				2024
Cash paid during the period for:
Income taxes	$	5,869			$	2,159
Interest:
Insurance and other		719				790
Railroad, utilities and energy		1,878				1,678

Note 22. 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 currently 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 Hathaway Energy Company (“BHE”), operates as a regulated electric utility in Utah, Oregon, Wyoming and other Western states. HomeServices of America, Inc. (“HomeServices”) is also a wholly-owned subsidiary of BHE. Certain legal matters related to these entities are described below.

PacifiCorp

In September 2020, a severe weather event with 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, 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 and included the Santiam Canyon, Beachie Creek, South Obenchain, Echo Mountain Complex, 242, Archie Creek, Slater and other fires. The Slater fire occurred in both Oregon and California. 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.

A significant number of complaints and demands alleging similar claims 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, PacifiCorp received correspondence from the U.S. and Oregon Departments of Justice regarding the potential recovery of certain costs and damages alleged to have occurred on federal and state lands in connection with certain of the 2020 Wildfires. In December 2024, the United States of America filed a complaint against PacifiCorp in conjunction with the correspondence from the U.S. Department of Justice. The civil cover sheet accompanying the complaint demands damages estimated to exceed $900 million. PacifiCorp is actively cooperating with the U.S. and Oregon Departments of Justice on resolving these alleged claims.

Amounts sought in outstanding complaints and demands filed in Oregon and in certain demands in California approximate $54 billion, excluding any doubling or trebling of damages or punitive damages included in the complaints. Generally, the complaints filed in California do not specify damages sought and are excluded from this amount. Of the $54 billion, $51 billion represents the economic and noneconomic damages sought in the James mass complaints described below. Oregon law provides for doubling of economic and property damages in the event the defendant is found to have acted with gross negligence, recklessness, willfulness or malice. Oregon law provides for trebling of damages associated with timber, shrubs and produce in the event the defendant is determined to have willfully and intentionally trespassed.

The 2020 Wildfires and 2022 Wildfire discussed below are referred to as the “Wildfires.” 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. Investigations into the cause and origin of each of the 2020 Wildfires are complex and ongoing and have been or are being conducted by various entities, including the U.S. Department of Agriculture Forest Service (“USFS”), the California Public Utilities Commission, the Oregon Department of Forestry (“ODF”), the Oregon Department of Justice, PacifiCorp and various experts engaged by PacifiCorp.

Notes to Consolidated Financial Statements

Note 22. Contingencies and commitments

In May 2022, the USFS issued its report of investigation into the Archie Creek fire concluding that the probable cause of the fire was power lines owned and operated by PacifiCorp. The report also states that evidence indicates failure of power line infrastructure. The USFS report of investigation into the Slater fire for the investigation period from October 5, 2020 to December 8, 2020 concluded that the fire was caused by a downed power line owned and operated by PacifiCorp. The report states that evidence indicates a tree fell onto the power line and that wind blew over the 137-foot tree with internal rot that showed no outward signs of distress and would not have been classified or identified as a hazard tree. Settlements have been reached with substantially all individual plaintiffs, timber companies and insurance subrogation plaintiffs in both the Archie Creek and Slater fires, with government timber and suppression cost claims remaining.

In April 2023, the USFS issued its report of investigation into a wildland fire that began in the Opal Creek wilderness outside of the Santiam Canyon that was first reported on August 16, 2020 (“Beachie Creek Fire”), approximately three weeks prior to the September 2020 wind event described above. In March 2025, PacifiCorp received the ODF’s final investigation report on the Santiam Canyon fires (“ODF’s Report”), which concluded that embers from the pre-existing Beachie Creek Fire caused 12 fires within the Santiam Canyon. The ODF’s Report also found that PacifiCorp’s power lines did not contribute to the overall spread of fire into the Santiam Canyon, even though its power lines ignited seven spot fires within the Santiam Canyon that were each suppressed.

The Beachie Creek fire that spread into the Santiam Canyon burned approximately 193,000 acres; the South Obenchain fire burned approximately 33,000 acres; the Echo Mountain Complex fire burned approximately 3,000 acres; and the 242 fire burned approximately 14,000 acres. The James cases described below are associated with the Beachie Creek (Santiam Canyon), South Obenchain, Echo Mountain Complex and 242 fires, which were four distinct fires located hundreds of miles apart.

On September 30, 2020, a class action complaint against PacifiCorp was filed captioned Jeanyne James et al. v. PacifiCorp et al. (“James”), in Oregon Circuit Court in Multnomah County, Oregon (the “Multnomah Court”) in connection with the 2020 Wildfires. In November 2021, the plaintiffs filed an amended complaint to limit the class to include Oregon citizens allegedly impacted by the Santiam Canyon, Echo Mountain Complex, South Obenchain and 242 wildfires, as well as to add claims for noneconomic damages. The amended complaint alleged that PacifiCorp’s assets contributed to the Oregon wildfires occurring on or after September 7, 2020, and that PacifiCorp acted with gross negligence, among other things, seeking damages not less than $600 million of economic damages and in excess of $1 billion of noneconomic damages for the plaintiffs and the class. Numerous cases were consolidated into the original James complaint.

Between April 2024 and May 2025, seven separate mass complaints against PacifiCorp naming 1,690 individual class members were filed in the Multnomah Court referencing the James case as the lead case. Complaints for ten of the plaintiffs in the mass complaints were subsequently dismissed. These James case mass complaints make damages-only allegations seeking economic, noneconomic and punitive damages, as well as doubling of economic damages. In December 2024, two additional complaints were filed in Multnomah Court on behalf of eight plaintiffs also referencing the James case as the lead case. PacifiCorp believes the magnitude of damages sought by the class members in the James case mass complaints and additional two complaints to be of remote likelihood of being awarded based on the amounts awarded in the jury verdicts described below that are being appealed.

In June 2023, a jury verdict was issued in the first James trial finding PacifiCorp’s conduct grossly negligent, reckless and willful as to each of the 17 named plaintiffs and the entire class. The jury awarded economic and noneconomic damages. After the jury verdict, the Multnomah Court doubled the economic damages, in accordance with Oregon law, and added punitive damages by applying a 0.25 multiplier to the awarded economic and noneconomic damages. PacifiCorp filed a motion with the Multnomah Court requesting the court offset the damage awards by deducting insurance proceeds received by any of the plaintiffs. Net damages awarded to the 17 plaintiffs were $93 million. In January 2024, PacifiCorp filed a notice of appeal associated with the June 2023 verdict, including whether the case can proceed as a class action.

Subsequent to the June 2023 jury verdict, eight damages phase trials with up to eleven plaintiffs in each trial have been held with separate jury verdicts issued and damages awarded for each on a basis consistent with the initial trial. Aggregate net damages awarded in these trials, including estimates for additional damages expected to be awarded by the Multnomah Court for certain of these trials consistent with other awards are $370 million. PacifiCorp amended its January 2024 appeal of the June 2023 James verdict to include certain jury verdicts. The appeals process and further actions could take several years.

For each limited judgment entered in the court, PacifiCorp has posted or expects to post a supersedeas bond, which stays any effort to seek payment of the judgments pending final resolution of any appeals. Under Oregon Revised Statutes 82.010, interest at a rate of 9% per annum will accrue on the judgments commencing at the date the judgments were entered until the entire money award is paid, amended or reversed by an appellate court.

Notes to Consolidated Financial Statements

Note 22. Contingencies and commitments

The remaining damages phase trials ordered under the October 2024 case management order are scheduled to begin September 8, October 6 and December 1, 2025. In March 2025, PacifiCorp filed a motion to stay the remaining James damages phase trials in consideration of the ODF’s Report. The motion was heard by the court and was denied in April 2025. A hearing was held in May 2025 to evaluate scheduling additional damages phase trials in 2026.

In April 2025, PacifiCorp filed its opening brief with the Oregon Court of Appeals in connection with its appeal of the June 2023 James verdict and the January and March 2024 verdicts for the first two James damages phase trials. In the opening brief, PacifiCorp addressed numerous procedural and legal issues, including that the class certification is improper due to the plaintiffs being impacted by distinct fires with independent ignition points that were hundreds of miles apart; awarding of noneconomic damages is not allowed under Oregon law; plaintiffs failed to prove that PacifiCorp caused harm to every class member; and jury instructions applied incorrect legal standards in assessing class-wide evidence and individual claims. Additionally, PacifiCorp incorporated the ODF’s Report into its opening appellate brief. Various parties who are not party to the James case have filed supportive amicus briefs with the court. The plaintiffs’ reply brief and cross-appeal was originally due in May 2025 but was extended to August 21, 2025.

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 USFS issued a Wildland Fire Origin and Cause Supplemental Incident Report. The report concluded that a tree coming in contact with a power line is the probable cause of the 2022 Wildfire.

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. Estimated losses on the Wildfires 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.

Through June 30, 2025, PacifiCorp recorded cumulative estimated probable Wildfire losses, before taxes and expected related insurance recoveries, of approximately $2.75 billion, of which approximately $1.37 billion has been paid in connection with settlements. There were no Wildfire loss accruals recorded in the first six months of 2025 and $251 million was accrued in the second quarter of 2024. Estimated unpaid liabilities were approximately $1.38 billion at June 30, 2025. Insurance recoveries received to date in connection with the Wildfires were $530 million, which were recorded prior to 2024. No further insurance recoveries are expected to become available.

It is reasonably possible PacifiCorp will incur significant additional losses beyond the amounts currently accrued; however, we are 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 and the 2022 Wildfire, the variation in the types of properties and damages and the ultimate outcome of legal actions, including mediation, settlement negotiations, jury verdicts and the appeals process.

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 asserted damages totaling approximately $9 billion by separate written notice as required by Texas law.

Notes to Consolidated Financial Statements

Note 22. Contingencies and commitments

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 (“U.S. District Court”) 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 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 defendants have reached settlements with the plaintiffs. The U.S. District Court approved these settlements in May and November 2024. The U.S. District Court entered a final judgment on the HomeServices settlement on January 15, 2025. All settlements have been appealed to the U.S. Court of Appeals for the Eighth Circuit. The initial briefing on all appeals was filed on April 21, 2025 and response briefs were filed on July 21, 2025.

The final HomeServices settlement agreement reached with the plaintiffs in April 2024 settles all claims asserted against HomeServices and certain of its subsidiaries in the Burnett case and effectuates a nationwide class settlement. The final settlement agreement includes scheduled payments over four years and aggregating $250 million. HomeServices has made payments in escrow of $67 million through June 30, 2025. If the settlement is not affirmed by the U.S. Court of Appeals for the Eighth Circuit, 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.

Other legal matters

In September 2024, National Indemnity Company (“NICO”) entered into a settlement agreement reached concerning certain non-insurance affiliates that filed voluntary petitions under Chapter 11 of the bankruptcy code in the United States Bankruptcy Court for the District of New Jersey (the “Court”) in 2023. Under the terms of the settlement agreement, NICO agreed to pay $535 million to the bankruptcy estate in consideration of a release of all estate causes of action against NICO and its affiliates. In connection with the settlement agreement, NICO recorded a pre-tax charge of $490 million in September 2024, which is net of $45 million from a third party that was covered under the release. The Court’s approval of the settlement agreement over the objections of certain creditors is pending, as are appeals by certain creditors of prior rulings in favor of the bankruptcy estate.

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.

Commitments

In January 2024, we acquired the remaining noncontrolling interests in Pilot for $2.6 billion. On September 30, 2024, BHE repurchased 5.85% of its outstanding common stock held by certain noncontrolling BHE shareholders for $2.9 billion. Additionally, in September and October 2024, Berkshire acquired the remaining 2.12% of BHE’s outstanding common stock held by noncontrolling shareholders in exchange for 2,291,631 shares of Berkshire Class B common stock valued at $1.045 billion. The acquisitions of these noncontrolling interests represented equity transactions. We recorded the differences between the consideration paid and the carrying values of the noncontrolling interests, net of deferred income tax liabilities, if applicable, to capital in excess of par value. Pilot and BHE are now wholly-owned subsidiaries.

Notes to Consolidated Financial Statements

Note 23. Revenues from contracts with customers

The following tables summarize customer contract revenues disaggregated by reportable segment and the source of the revenue (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.

		BNSF				BHE				Manufacturing				Service and Retailing				Pilot				McLane				Insurance, Corporate and other				Total
Three months ended June 30, 2025
Manufactured products:
Industrial and commercial		$	—			$	—			$	7,702			$	45			$	—			$	—			$	—			$	7,747
Building			—				—				5,123				—				—				—				—				5,123
Consumer			—				—				4,361				—				—				—				—				4,361
Grocery and convenience store distribution			—				—				—				—				—				7,516				—				7,516
Food and beverage distribution			—				—				—				—				—				4,663				—				4,663
Auto sales			—				—				—				2,911				—				—				—				2,911
Other retail and wholesale distribution			—				—				952				3,785				9,996				—				—				14,733
Service			5,700				1,175				429				1,747				68				208				—				9,327
Electricity and natural gas			—				5,025				—				—				—				—				—				5,025
Total			5,700				6,200				18,567				8,488				10,064				12,387				—				61,406
Other revenues			46				205				1,373				2,183				31				12				27,259				31,109
		$	5,746			$	6,405			$	19,940			$	10,671			$	10,095			$	12,399			$	27,259			$	92,515
Six months ended June 30, 2025
Manufactured products:
Industrial and commercial		$	—			$	—			$	15,055			$	118			$	—			$	—			$	—			$	15,173
Building			—				—				9,711				—				—				—				—				9,711
Consumer			—				—				8,621				—				—				—				—				8,621
Grocery and convenience store distribution			—				—				—				—				—				14,958				—				14,958
Food and beverage distribution			—				—				—				—				—				9,036				—				9,036
Auto sales			—				—				—				5,612				—				—				—				5,612
Other retail and wholesale distribution			—				—				1,829				7,354				20,149				—				—				29,332
Service			11,353				1,966				712				3,386				131				401				—				17,949
Electricity and natural gas			—				10,371				—				—				—				—				—				10,371
Total			11,353				12,337				35,928				16,470				20,280				24,395				—				120,763
Other revenues			92				412				2,764				4,313				237				20				53,639				61,477
		$	11,445			$	12,749			$	38,692			$	20,783			$	20,517			$	24,415			$	53,639			$	182,240

Notes to Consolidated Financial Statements

Note 23. Revenues from contracts with customers

		BNSF				BHE				Manufacturing				Service and Retailing				Pilot				McLane				Insurance, Corporate and other				Total
Three months ended 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				12,877			—					—				17,461
Service			5,698				1,204				402				1,437				68				245				—				9,054
Electricity and natural gas		—					4,977			—				—				—				—					—				4,977
Total			5,698				6,181				18,525				7,947				12,945				12,223				—				63,519
Other revenues			89				299				1,282				1,975				39				48				26,402				30,134
		$	5,787			$	6,480			$	19,807			$	9,922			$	12,984			$	12,271			$	26,402			$	93,653
Six months ended 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				25,270			—					—				34,441
Service			11,316				2,010				779				2,814				132				466				—				17,517
Electricity and natural gas		—					10,106			—				—				—				—					—				10,106
Total			11,316				12,116				35,798				15,696				25,402				24,482				—				124,810
Other revenues			108				629				2,520				3,898				76				89				51,392				58,712
		$	11,424			$	12,745			$	38,318			$	19,594			$	25,478			$	24,571			$	51,392			$	183,522

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, 2025 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 and natural gas		$	3,475			$	18,653			$	22,128
Other sales and service contracts			3,475				4,686				8,161

Note 24. Business segment data

Berkshire’s numerous and diverse businesses are managed on an unusually decentralized basis. These businesses are aggregated into operating segments in a manner that reflects how Berkshire views the business activities. The tabular information that follows shows data of Berkshire’s reportable business segments reconciled to amounts reflected in our Consolidated Financial Statements. Intersegment transactions are not eliminated from segment results when those transactions are considered in assessing the results of the respective segments. Furthermore, investment gains and losses, goodwill and indefinite-lived intangible asset impairments and amortization of certain acquisition accounting adjustments or certain other corporate income and expense items are not considered in assessing the financial performance of operating businesses. Collectively, these items are included in corporate, eliminations and other to reconcile segment totals to consolidated amounts. The information in the following tables includes additional disclosures pursuant to ASU 2023-07, which we adopted as of December 31, 2024.

Notes to Consolidated Financial Statements

Note 24. Business segment data

We view our insurance segment as possessing two distinct activities – underwriting and investing. Our underwriting activities are summarized for GEICO, Berkshire Hathaway Primary Group (“BH Primary”) and Berkshire Hathaway Reinsurance Group (“BHRG”). Earnings data of our business segments are shown in the following tables (in millions).

	Second Quarter 2025
	GEICO			BH Primary			BHRG			Total Underwriting			Investment Income			Total
Revenues	$	11,064		$	4,677		$	6,454		$	22,195		$	4,053		$	26,248
Costs and expenses:
Losses and LAE		7,945			3,193			2,935			14,073			—			14,073
Life, annuity and health benefits		—			—			1,132			1,132			—			1,132
Other segment items		1,298			1,421			1,737			4,456			50			4,506
Total costs and expenses		9,243			4,614			5,804			19,661			50			19,711
Earnings before income taxes	$	1,821		$	63		$	650		$	2,534		$	4,003		$	6,537

	First Six Months 2025
	GEICO			BH Primary			BHRG			Total Underwriting			Investment Income			Total
Revenues	$	21,816		$	9,254		$	12,929		$	43,999		$	7,624		$	51,623
Costs and expenses:
Losses and LAE		15,369			6,645			6,705			28,719			—			28,719
Life, annuity and health benefits		—			—			2,200			2,200			—			2,200
Other segment items		2,453			2,690			3,681			8,824			60			8,884
Total costs and expenses		17,822			9,335			12,586			39,743			60			39,803
Earnings before income taxes	$	3,994		$	(81	)	$	343		$	4,256		$	7,564		$	11,820

	Second Quarter 2024
	GEICO			BH Primary			BHRG			Total Underwriting			Investment Income			Total
Revenues	$	10,469		$	4,656		$	6,828		$	21,953		$	4,077		$	26,030
Costs and expenses:
Losses and LAE		7,755			3,093			3,259			14,107			—			14,107
Life, annuity and health benefits		—			—			954			954			—			954
Other segment items		928			1,284			1,833			4,045			9			4,054
Total costs and expenses		8,683			4,377			6,046			19,106			9			19,115
Earnings before income taxes	$	1,786		$	279		$	782		$	2,847		$	4,068		$	6,915

	First Six Months 2024
	GEICO			BH Primary			BHRG			Total Underwriting			Investment Income			Total
Revenues	$	20,703		$	9,197		$	13,527		$	43,427		$	7,241		$	50,668
Costs and expenses:
Losses and LAE		15,169			5,905			6,481			27,555			—			27,555
Life, annuity and health benefits		—			—			1,899			1,899			—			1,899
Other segment items		1,820			2,527			3,453			7,800			21			7,821
Total costs and expenses		16,989			8,432			11,833			37,254			21			37,275
Earnings before income taxes	$	3,714		$	765		$	1,694		$	6,173		$	7,220		$	13,393

Other segment items related to insurance underwriting include commissions and brokerage expenses and other insurance underwriting expenses.

Notes to Consolidated Financial Statements

Note 24. Business segment data

					BNSF
					Second Quarter						First Six Months
					2025			2024			2025			2024
Revenues					$	5,769		$	5,805		$	11,489		$	11,465
Costs and expenses:
Compensation and benefits						1,372			1,321			2,759			2,733
Fuel						698			822			1,468			1,676
Depreciation and amortization						679			663			1,350			1,320
Interest expense						270			267			542			532
Other segment items						941			1,110			1,958			2,063
Total costs and expenses						3,960			4,183			8,077			8,324
Earnings before income taxes					$	1,809		$	1,622		$	3,412		$	3,141

Other segment items of BNSF include purchased services, equipment rents and materials expenses.

					BHE
					Second Quarter						First Six Months
					2025			2024			2025			2024
Revenues					$	6,418		$	6,492		$	12,774		$	12,769
Costs and expenses:
Energy cost of sales						1,434			1,527			2,965			3,197
Energy operations and maintenance						1,392			1,562			2,641			2,797
Energy depreciation and amortization						1,054			976			2,063			1,958
Real estate operating costs and expenses						1,210			1,240			2,081			2,326
Interest expense						664			625			1,310			1,270
Other segment items						279			236			606			463
Total costs and expenses						6,033			6,166			11,666			12,011
Earnings before income taxes					$	385		$	326		$	1,108		$	758

Other segment items of BHE primarily consist of property taxes and other expenses. Energy operations and maintenance includes losses associated with the 2020 and 2022 Wildfires. See Note 22.

	Manufacturing												Service and retailing
	Second Quarter						First Six Months						Second Quarter						First Six Months
	2025			2024			2025			2024			2025			2024			2025			2024
Revenues	$	19,969		$	19,840		$	38,735		$	38,369		$	10,688		$	9,947		$	20,825		$	19,650
Costs and expenses:
Cost of sales and services		12,980			13,058			25,309			25,290			6,394			5,959			12,458			11,745
Cost of leasing		305			287			599			530			1,587			1,457			3,176			2,905
Interest expense		298			195			583			393			29			29			56			58
Other segment items		3,139			3,171			6,281			6,113			1,573			1,533			3,089			3,065
Total costs and expenses		16,722			16,711			32,772			32,326			9,583			8,978			18,779			17,773
Earnings before income taxes	$	3,247		$	3,129		$	5,963		$	6,043		$	1,105		$	969		$	2,046		$	1,877

Other segment items of the manufacturing, service and retailing segments primarily consist of selling, general and administrative expenses.

Notes to Consolidated Financial Statements

Note 24. Business segment data

	Pilot												McLane
	Second Quarter						First Six Months						Second Quarter						First Six Months
	2025			2024			2025			2024			2025			2024			2025			2024
Revenues	$	10,109		$	12,999		$	20,539		$	25,502		$	12,601		$	12,458		$	24,776		$	24,933
Costs and expenses:
Cost of sales and services		9,010			11,893			18,294			23,450			11,505			11,430			22,606			22,873
Depreciation and amortization		260			251			517			496			47			49			96			99
Other segment items		720			656			1,441			1,287			873			837			1,717			1,654
Total costs and expenses		9,990			12,800			20,252			25,233			12,425			12,316			24,419			24,626
Earnings before income taxes	$	119		$	199		$	287		$	269		$	176		$	142		$	357		$	307

Other segment items of Pilot primarily consist of store operating, interest and general and administrative expenses. Other segment items of McLane include general and administrative expenses.

Reconciliations of revenues and earnings before income taxes of our business segments to the consolidated amounts follow (in millions).

	Revenues												Earnings before income taxes
	Second Quarter						First Six Months						Second Quarter						First Six Months
	2025			2024			2025			2024			2025			2024			2025			2024
Total operating businesses	$	91,802		$	93,571		$	180,761		$	183,356		$	13,378		$	13,302		$	24,993		$	25,788
Investment gains (losses)		—			—			—			—			6,364			23,857			(71	)		25,733
Equity method investments		—			—			—			—			(4,745	)		252			(4,619	)		745
Corporate, eliminations and other		713			82			1,479			166			(247	)		726			(405	)		1,577
	$	92,515		$	93,653		$	182,240		$	183,522		$	14,750		$	38,137		$	19,898		$	53,843

Additional segment data follows (in millions).

	Interest expense												Income tax expense (benefit)
	Second Quarter						First Six Months						Second Quarter						First Six Months
	2025			2024			2025			2024			2025			2024			2025			2024
Business segments
Insurance	$	—		$	—		$	—		$	—		$	1,177		$	1,332		$	2,231		$	2,614
BNSF		270			267			542			532			343			395			732			771
BHE		664			625			1,310			1,270			(357	)		(434	)		(779	)		(827	)
Manufacturing		298			195			583			393			701			727			1,312			1,411
Pilot		49			83			121			177			26			28			63			27
McLane		6			5			13			10			43			34			88			76
Service and retailing		29			29			56			58			243			244			468			458
		1,316			1,204			2,625			2,440			2,176			2,326			4,115			4,530
Reconciliation to consolidated amount
Investment gains (losses)		—			—			—			—			1,379			5,082			(11	)		5,476
Equity method investments		—			—			—			—			(1,170	)		32			(1,159	)		120
Corporate, eliminations and other		(63	)		26			(115	)		106			(92	)		199			(176	)		387
	$	1,253		$	1,230		$	2,510		$	2,546		$	2,293		$	7,639		$	2,769		$	10,513

Notes to Consolidated Financial Statements

Note 24. Business segment data

	Capital expenditures												Depreciation and amortization
	Second Quarter						First Six Months						Second Quarter						First Six Months
	2025			2024			2025			2024			2025			2024			2025			2024
Business segments
Insurance	$	11		$	14		$	35		$	49		$	110		$	100		$	217		$	198
BNSF		947			1,034			1,599			1,755			679			663			1,350			1,320
BHE		2,445			1,975			4,573			4,128			1,064			988			2,083			1,982
Manufacturing		603			651			1,310			1,359			612			613			1,222			1,214
Pilot		254			224			458			396			260			251			517			496
McLane		45			54			67			79			47			49			96			99
Service and retailing		553			583			1,097			1,162			404			376			803			743
	$	4,858		$	4,535		$	9,139		$	8,928			3,176			3,040			6,288			6,052
Reconciliation to consolidated amount
Corporate, eliminations and other														153			158			306			314
													$	3,329		$	3,198		$	6,594		$	6,366

					Goodwill						Identifiable assets
					June 30, 2025			December 31, 2024			June 30, 2025			December 31, 2024
Business segments
Insurance					$	16,557		$	16,557		$	537,326		$	539,884
BNSF						15,351			15,351			81,277			80,813
BHE						11,804			11,669			132,997			128,276
Manufacturing						27,951			27,716			122,431			119,860
Pilot						6,478			6,477			19,410			19,652
McLane						232			232			7,185			7,165
Service and retailing						5,878			5,878			38,356			37,198
					$	84,251		$	83,880			938,982			932,848
Reconciliation to consolidated amount
Corporate and other												140,735			137,153
Goodwill												84,251			83,880
											$	1,163,968		$	1,153,881

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

Results of Operations

Net earnings attributable to Berkshire shareholders 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
	2025				2024				2025				2024
Insurance – underwriting	$	1,992			$	2,263			$	3,328			$	4,861
Insurance – investment income		3,367				3,320				6,260				5,918
BNSF		1,466				1,227				2,680				2,370
Berkshire Hathaway Energy (“BHE”)		702				655				1,799				1,372
Manufacturing, service and retailing		3,601				3,380				6,661				6,468
Investment gains (losses)		4,970				18,750				(68	)			20,230
Other-than-temporary impairment of investment in Kraft Heinz		(3,760	)			—				(3,760	)			—
Other		32				753				73				1,831
Net earnings attributable to Berkshire shareholders	$	12,370			$	30,348			$	16,973			$	43,050

Through our subsidiaries, we engage in numerous diverse business activities. The business segment data (Note 24 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, 2024) should be read in conjunction with this discussion.

Our periodic operating results may be affected in future periods by the impacts of ongoing macroeconomic and geopolitical conflicts and events, as well as changes in industry or company-specific factors or events. The pace of changes in these events, including tensions from developing international trade policies and tariffs, accelerated through the first six months of 2025. Considerable uncertainty remains as to the ultimate outcome of these events. We are currently unable to reliably predict the ultimate impact on our businesses, whether through changes in the availability of products, supply chain costs and efficiency, and customer demand for our products and services. It is reasonably possible there could be adverse consequences on most, if not all, of our operating businesses, as well as on our investments in equity securities, which could significantly affect our future results.

Insurance underwriting after-tax earnings decreased $271 million in the second quarter and $1.5 billion in the first six months of 2025 compared to 2024. Underwriting results in the first six months of 2025 included after-tax losses of approximately $850 million from the Southern California wildfires, which occurred in the first quarter. After-tax earnings from insurance investment income increased $47 million (1.4%) in the second quarter and $342 million (5.8%) in the first six months of 2025 compared to 2024, attributable to higher average short-term investment balances, partially offset by lower interest rates and dividend income, as well as the impact of capital distributions to Berkshire in the fourth quarter of 2024. The subsequent investment income earned on such distributions is included in other earnings in the above table.

After-tax earnings of BNSF increased $239 million (19.5%) in the second quarter and $310 million (13.1%) in the first six months of 2025 compared to 2024, primarily from improved operating efficiencies and productivity and from lower effective income tax rates. After-tax earnings of BHE increased $47 million (7.2%) in the second quarter and $427 million (31.1%) in the first six months of 2025 compared to 2024. The earnings increases reflected higher earnings from the U.S. utilities and lower earnings attributable to noncontrolling interests and reduced losses from the real estate brokerage businesses, primarily due to the impact of litigation settlement charges in the first quarter of 2024, partially offset by lower earnings from the natural gas pipelines and other energy businesses.

After-tax earnings from our manufacturing, service and retailing businesses increased $221 million (6.5%) in the second quarter and $193 million (3.0%) in the first six months of 2025 compared to 2024. Results in 2025 among our numerous operations were mixed.

Investment gains (losses) derive from our investments in equity securities and can include significant unrealized gains and losses from changes in market prices and foreign currency exchange rates applicable to certain of our investments. We believe that investment gains and losses, 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.