UNITED STATES SECURITIES AND EXCHANGE COMMISSION ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

to

Commission file number 001-14905

BERKSHIRE HATHAWAY INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation or organization)

47-0813844

(I.R.S. Employer Identification Number)

3555 Farnam Street, Omaha, Nebraska 68131

(Address of principal executive office) (Zip Code)

(402) 346-1400

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities

Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every

Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (?232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer Non-accelerated filer

Accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No

Number of shares of common stock outstanding as of April 27, 2018:

Class A -- Class B --

747,677 1,346,076,963

BERKSHIRE HATHAWAY INC.

Part I ? Financial Information

Item 1. Financial Statements Consolidated Balance Sheets--March 31, 2018 and December 31, 2017 Consolidated Statements of Earnings--First Quarter 2018 and 2017 Consolidated Statements of Comprehensive Income--First Quarter 2018 and 2017 Consolidated Statements of Changes in Shareholders' Equity--First Quarter 2018 and 2017 Consolidated Statements of Cash Flows--First Quarter 2018 and 2017 Notes to Consolidated Financial Statements

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures

Part II ? Other Information

Item 1. Legal Proceedings Item 1A. Risk Factors Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits

Signature

1

Page No.

2-3 4 5 5 6

7-24 25-42

42 42

43

43 43 43 43 43 43 44

44

Part I Financial Information Item 1. Financial Statements BERKSHIRE HATHAWAY INC.

and Subsidiaries CONSOLIDATED BALANCE SHEETS

(dollars in millions)

ASSETS Insurance and Other:

Cash and cash equivalents Short-term investments in U.S. Treasury Bills Investments in fixed maturity securities Investments in equity securities Investment in The Kraft Heinz Company (Fair Value: 2018 ? $20,272; 2017 ? $25,306) Receivables Inventories Property, plant and equipment Goodwill Other intangible assets Deferred charges under retroactive reinsurance contracts Other

Railroad, Utilities and Energy: Cash and cash equivalents Property, plant and equipment Goodwill Regulatory assets Other

Finance and Financial Products: Cash and cash equivalents Short-term investments in U.S. Treasury Bills Loans and finance receivables Property, plant and equipment and assets held for lease Goodwill Other

See accompanying Notes to Consolidated Financial Statements

2

March 31, 2018

(Unaudited)

December 31, 2017

$ 50,559 48,040 19,920

166,658 17,687 30,906 16,244 23,807 55,079 32,260 15,007 11,939

488,106

$ 25,460 78,515 21,353

164,026 17,635 28,578 16,187 20,104 54,985 32,518 15,278 11,158

485,797

3,550 128,385

24,766 2,987 15,394

175,082

2,910 128,184

24,780 2,950

15,589

174,413

3,772 2,641 13,845 9,920 1,492 7,793

39,463

$ 702,651

3,213 5,856 13,748 9,931 1,493 7,644

41,885

$ 702,095

BERKSHIRE HATHAWAY INC. and Subsidiaries

CONSOLIDATED BALANCE SHEETS (dollars in millions)

LIABILITIES AND SHAREHOLDERS' EQUITY Insurance and Other:

Unpaid losses and loss adjustment expenses Unpaid losses and loss adjustment expenses under retroactive reinsurance contracts Unearned premiums Life, annuity and health insurance benefits Other policyholder liabilities Accounts payable, accruals and other liabilities Notes payable and other borrowings

Railroad, Utilities and Energy: Accounts payable, accruals and other liabilities Regulatory liabilities Notes payable and other borrowings

Finance and Financial Products: Accounts payable, accruals and other liabilities Derivative contract liabilities Notes payable and other borrowings

Income taxes, principally deferred Total liabilities

Shareholders' equity: Common stock Capital in excess of par value Accumulated other comprehensive income Retained earnings Treasury stock, at cost Berkshire Hathaway shareholders' equity Noncontrolling interests Total shareholders' equity

See accompanying Notes to Consolidated Financial Statements

3

March 31, 2018

(Unaudited)

December 31, 2017

$ 62,094 42,344 18,448 17,935 7,864 25,782 25,663

200,130

10,786 7,599 62,667 81,052

1,566 2,378 10,755 14,699 55,718 351,599

8 35,681 (2,477) 315,952 (1,763) 347,401

3,651 351,052 $ 702,651

$ 61,122 42,937 16,040 17,608 7,654 23,099 27,324

195,784

11,334 7,511 62,178 81,023

1,470 2,172 13,085 16,727 56,607 350,141

8 35,694 58,571 255,786 (1,763) 348,296

3,658 351,954 $ 702,095

BERKSHIRE HATHAWAY INC. and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS (dollars in millions except per share amounts)

Revenues: Insurance and Other:

Insurance premiums earned Sales and service revenues Interest, dividend and other investment income

Railroad, Utilities and Energy operating and other revenues Finance and Financial Products:

Sales and service revenues Interest, dividend and other investment income

Total revenues Investment and derivative contract gains/losses:

Investments gains (losses) Derivative contract gains (losses)

Costs and expenses: Insurance and Other:

Insurance losses and loss adjustment expenses Life, annuity and health insurance benefits Insurance underwriting expenses Cost of sales and services Selling, general and administrative expenses Interest expense

Railroad, Utilities and Energy: Cost of sales and operating expenses Interest expense

Finance and Financial Products: Cost of sales and services Selling, general and administrative expenses Interest expense

Total costs and expenses Earnings (loss) before income taxes and equity method earnings

Equity method earnings Earnings (loss) before income taxes

Income tax expense (benefit) Net earnings (loss)

Earnings attributable to noncontrolling interests Net earnings (loss) attributable to Berkshire Hathaway shareholders Net earnings (loss) per average equivalent Class A share Net earnings (loss) per average equivalent Class B share* Average equivalent Class A shares outstanding Average equivalent Class B shares outstanding

First Quarter

2018

2017

(Unaudited)

$ 13,373 31,623 1,315 46,311 10,102

1,693 367

2,060 58,473

(7,809) (206)

(8,015)

$ 21,753 30,229 1,162 53,144 9,378

1,498 350

1,848 64,370

315 460 775

8,963 1,287 2,604 25,415 4,024

390

42,683

18,566 1,227 2,339

24,360 4,116 270

50,878

7,401 710

8,111

6,754 693

7,447

1,029 467 92

1,588 52,382 (1,924)

401 (1,523)

(452) (1,071)

67 $ (1,138)

$ (692) $ (0.46) 1,644,958 2,467,436,888

867 442 104 1,413 59,738 5,407 281 5,688 1,549 4,139 79 $ 4,060

$ 2,469 $ 1.65 1,644,425 2,466,636,938

* Net earnings (loss) per average equivalent Class B share outstanding are one-fifteen-hundredth of the equivalent Class A amount.

See accompanying Notes to Consolidated Financial Statements 4

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