Berkshire Hathaway(BRK_A) - 2024 Q2 - Quarterly Results

Cash and Investments - Cash and cash equivalents increased to $36.884 billion in June 2024 from$ 33.672 billion in December 2023[4] - Short-term investments in U.S. Treasury Bills surged to $234.618 billion in June 2024 from$ 129.619 billion in December 2023[4] - Investments in equity securities decreased to $284.871 billion in June 2024 from$ 353.842 billion in December 2023[4] - Cash, cash equivalents, and U.S. Treasury Bills increased to $224.2 billion at June 30, 2024, compared to$ 121.8 billion at December 31, 2023[98] - Purchases of U.S. Treasury Bills and fixed maturity securities in 2024 totaled $229,505 million, compared to$ 99,060 million in 2023[9] - Investments in fixed maturity securities as of June 30, 2024 had a fair value of $16,802 million, with 94% of foreign government holdings rated AA or higher[14][15] - Total amortized cost of investments is$ 16.603 billion, with $11.002 billion due within one year,$ 4.754 billion due after one year through five years, $577 million due after five years through ten years, and$ 129 million due after ten years[16] - Fair value of investments is $16.802 billion, with$ 10.990 billion due within one year, $4.756 billion due after one year through five years,$ 766 million due after five years through ten years, and $139 million due after ten years[16] - Investments in equity securities have a total fair value of$ 284.871 billion, with $94.926 billion in banks, insurance, and finance,$ 113.269 billion in consumer products, and $76.676 billion in commercial, industrial, and other sectors[18] - Approximately 72% of the aggregate fair value of equity securities is concentrated in five companies: American Express Company ($ 35.1 billion), Apple Inc. ( $84.2 billion), Bank of America Corporation ($ 41.1 billion), The Coca-Cola Company ( $25.5 billion), and Chevron Corporation ($ 18.6 billion)[18] - As of June 30, 2024, the company owns 151.6 million shares of American Express Company common stock, representing 21.3% of its outstanding common stock[19] - The company's investment in Occidental preferred stock has an aggregate liquidation value of approximately $8.5 billion as of June 30, 2024[19] - The company owns 26.9% of the outstanding Kraft Heinz common stock and 28.8% of the outstanding Occidental common stock as of June 30, 2024[20] - The carrying value of the company's investment in Occidental common stock exceeded its share of shareholders' equity by approximately$ 10 billion as of March 31, 2024[21] - Equity in earnings from Kraft Heinz was $242 million in the first six months of 2024, while distributions received were$ 260 million[22] - Equity in earnings from Occidental was $463 million in the first six months of 2024, while distributions received were$ 96 million[22] - Equity securities investment gains in Q2 2024 were $23.885 billion, compared to$ 33.077 billion in Q2 2023[27] - Taxable gains from equity securities sales in Q2 2024 were $59.6 billion, significantly higher than$ 2.4 billion in Q2 2023[27] - Investment gains (losses) recorded $23.9 billion in Q2 2024 and$ 25.7 billion in the first six months of 2024, with net earnings of $18.8 billion and$ 20.2 billion respectively[121] - Investment gains in Q2 2024 included after-tax realized gains of $47.0 billion from sales of investments[146] Financial Performance - Total revenues for Q2 2024 increased to$ 93.653 billion, up from $92.503 billion in Q2 2023[6] - Net earnings attributable to Berkshire Hathaway shareholders for Q2 2024 were$ 30.348 billion, compared to $35.912 billion in Q2 2023[6] - Comprehensive income attributable to Berkshire Hathaway shareholders for Q2 2024 was$ 30.543 billion, compared to $36.648 billion in Q2 2023[7] - Total costs and expenses for Q2 2024 decreased to$ 79.625 billion from $80.640 billion in Q2 2023[6] - Net earnings per average equivalent Class A share for Q2 2024 were$ 21,122, compared to $24,775 in Q2 2023[6] - Net earnings for the first six months of 2024 were$ 43,330 million, compared to $71,956 million in 2023[9] - Net cash flows from operating activities in 2024 were$ 24,168 million, up from $21,127 million in 2023[9] - Sales of equity securities in 2024 generated$ 97,123 million, significantly higher than $25,833 million in 2023[9] - Net earnings attributable to Berkshire Hathaway shareholders were$ 30.348 billion in Q2 2024, down from $35.912 billion in Q2 2023, with a six-month total of$ 43.050 billion in 2024 compared to $71.416 billion in 2023[79] - Investment gains in Q2 2024 were$ 18.750 billion, down from $25.869 billion in Q2 2023, with a six-month total of$ 20.230 billion in 2024 compared to $53.308 billion in 2023[79] - Operating earnings for Q2 2024 were$ 11.598 billion, up from $10.043 billion in Q2 2023[145] - Net earnings attributable to Berkshire shareholders for Q2 2024 were$ 30.348 billion, compared to $35.912 billion in Q2 2023[145] Insurance Operations - Insurance premiums earned in Q2 2024 rose to$ 21.953 billion, up from $20.561 billion in Q2 2023[6] - Insurance underwriting after-tax earnings increased by$ 1.0 billion in Q2 2024 and $2.7 billion in the first six months of 2024 compared to 2023, driven by improved GEICO performance[78] - GEICO's underwriting revenue increased to$ 10.469 billion in Q2 2024 from $9.714 billion in Q2 2023, with a total of$ 20.703 billion for the first six months of 2024 compared to $19.340 billion in 2023[76] - Total insurance revenue for Q2 2024 was$ 26.030 billion, up from $23.479 billion in Q2 2023, with a six-month total of$ 50.668 billion in 2024 compared to $45.667 billion in 2023[76] - GEICO's pre-tax underwriting earnings for the first six months of 2024 were$ 3,714 million, a significant increase from $1,217 million in 2023, driven by higher average premiums per auto policy and lower claims frequencies[83] - GEICO's premiums written increased by$ 1.7 billion (8.9%) in the first six months of 2024 compared to 2023, with average written premiums per auto policy rising by 11.3%[83] - GEICO's loss ratio decreased to 73.3% in the first six months of 2024, down 10.4 percentage points from 2023, reflecting lower claims frequencies and higher average earned premiums[83] - Berkshire Hathaway Primary Group's premiums written increased by $509 million (5.7%) in the first six months of 2024 compared to 2023, with premiums earned rising by 12.2%[86] - Berkshire Hathaway Primary Group's loss ratio decreased by 3.1 percentage points in the first six months of 2024 compared to 2023, due to lower incurred losses from significant catastrophes[86] - Berkshire Hathaway Reinsurance Group's property/casualty premiums earned increased to$ 11,043 million in the first six months of 2024, up from $10,474 million in 2023[88] - Berkshire Hathaway Reinsurance Group's pre-tax underwriting earnings for property/casualty were$ 2,030 million in the first six months of 2024, compared to $1,514 million in 2023[88] - GEICO's underwriting expenses declined by$ 119 million (6.1%) in the first six months of 2024 compared to 2023, with the expense ratio decreasing to 8.8%[83] - Berkshire Hathaway Primary Group's underwriting expenses increased by $390 million (18.2%) in the first six months of 2024 compared to 2023, reflecting higher premiums earned[86] - GEICO's claims frequencies in 2024 declined for property damage (2-3%) and collision (6-7%) coverages compared to 2023, while average claims severities increased across all coverages[83] - Premiums written declined by 5.4% in Q2 2024 and 1.1% in the first six months of 2024 compared to 2023, primarily due to reductions in property volumes[90] - Premiums earned increased by 5.3% in Q2 2024 and 5.4% in the first six months of 2024 compared to 2023[90] - Losses and loss adjustment expenses increased by$ 331 million (11.9%) in Q2 2024 but decreased by $63 million (1.0%) in the first six months of 2024 compared to 2023[90] - Underwriting expenses increased by$ 54 million (3.8%) in Q2 2024 and $116 million (4.2%) in the first six months of 2024 compared to 2023[90] - Pre-tax underwriting earnings from variable annuity guarantee reinsurance contracts were$ 11 million in Q2 2024 and $105 million in the first six months of 2024[95] - Insurance-underwriting earnings for Q2 2024 were$ 2.263 billion, up from $1.247 billion in Q2 2023[149] - Insurance-investment income for Q2 2024 was$ 3.320 billion, compared to $2.369 billion in Q2 2023[149] - Insurance float (net liabilities under insurance contracts) was approximately$ 169 billion as of June 30, 2024[150] Railroad, Utilities, and Energy - Property, plant and equipment in the Railroad, Utilities and Energy segment increased to $179.907 billion in June 2024 from$ 177.616 billion in December 2023[4] - Notes payable and other borrowings in the Railroad, Utilities and Energy segment decreased to $81.688 billion in June 2024 from$ 85.579 billion in December 2023[5] - Freight rail transportation revenues for Q2 2024 were $5.720 billion, slightly down from$ 5.808 billion in Q2 2023[6] - Utility and energy operating revenues for Q2 2024 were $18.048 billion, down from$ 19.593 billion in Q2 2023[6] - BNSF's after-tax earnings declined by 2.9% in Q2 2024 and 5.6% in the first six months of 2024 compared to 2023, reflecting litigation-related charges[78] - BHE's after-tax earnings decreased by $130 million in Q2 2024 but increased by$ 171 million in the first six months of 2024 compared to 2023, with mixed results across utilities and natural gas pipelines[78] - BNSF's railroad operating revenues were $5,704 million in Q2 2024, relatively unchanged from 2023, but decreased by 2.0% to$ 11,361 million in the first six months of 2024 compared to 2023[100] - BNSF's net earnings were $1,264 million in Q2 2024, a decrease from$ 1,378 million in 2023, and $2,370 million in the first six months of 2024, down from$ 2,511 million in 2023[100] - Consumer products volumes increased by 15.0% in Q2 2024 and 17.0% in the first six months of 2024 compared to 2023, driven by higher intermodal shipments and a new intermodal customer[101] - Industrial products volumes decreased by 1.5% in Q2 2024 and 0.9% in the first six months of 2024, primarily due to lower aggregates, taconite, minerals, and waste shipments[101] - Agricultural products volumes increased by 10.8% in Q2 2024 and 7.1% in the first six months of 2024, driven by higher grain exports, renewable fuels, and fertilizer shipments[101] - Coal volumes decreased by 28.9% in Q2 2024 and 24.7% in the first six months of 2024, primarily due to lower natural gas prices displacing coal as a fuel source[102] - BNSF's railroad operating expenses were $3,890 million in Q2 2024, a slight increase of 0.2% from 2023, and$ 7,818 million in the first six months of 2024, a decrease of 1.2% from 2023[102] - BHE's energy operating revenue increased to $5,115 million in Q2 2024 from$ 4,933 million in 2023, but decreased to $10,360 million in the first six months of 2024 from$ 10,404 million in 2023[103] - BHE's net earnings attributable to Berkshire Hathaway shareholders were $655 million in Q2 2024, down from$ 785 million in 2023, and $1,372 million in the first six months of 2024, up from$ 1,201 million in 2023[103] - BHE's effective income tax rate was (133.1)% in Q2 2024 and (109.1)% in the first six months of 2024, reflecting significant production tax credits from wind-powered electricity generation[103] - U.S. utilities net earnings declined by $163 million (37.9%) in Q2 2024 compared to 2023, primarily due to wildfire-related pre-tax loss accruals of$ 251 million[105] - Natural gas pipelines net earnings increased by $47 million (25.1%) in Q2 2024, driven by higher gas sales margin and transportation revenue[105] - Other energy businesses net earnings decreased by$ 10 million (2.6%) in Q2 2024, with renewable energy business earnings declining due to lower wind tax equity investments[105] - Real estate brokerage net earnings increased by $9 million (26.5%) in Q2 2024, but declined by$ 116 million in the first six months due to litigation-related expense accruals[105] - BNSF earnings for Q2 2024 were $1.227 billion, slightly down from$ 1.264 billion in Q2 2023[149] - Berkshire Hathaway Energy Company earnings for Q2 2024 were $655 million, down from$ 785 million in Q2 2023[149] Manufacturing, Service, and Retailing - Manufacturing revenues increased by $738 million (3.9%) in Q2 2024, with industrial products leading growth at$ 397 million (4.5%)[109] - Service and retailing revenues decreased by $619 million (2.7%) in Q2 2024, with pre-tax earnings declining by 20.1%[109] - Industrial products pre-tax earnings increased by$ 144 million (9.5%) in Q2 2024, with pre-tax margin improving to 17.9% from 17.1%[110] - Building products pre-tax earnings decreased by $144 million (11.7%) in Q2 2024, with pre-tax margin declining to 15.7% from 18.3%[110] - Consumer products pre-tax earnings increased by$ 26 million (7.3%) in Q2 2024, with pre-tax margin improving to 10.4% from 10.1%[110] - Industrial products group revenues increased by $397 million (4.5%) in Q2 2024 and$ 417 million (2.4%) in the first six months of 2024 compared to 2023[111] - PCC's revenues reached $2.7 billion in Q2 2024, a 15.0% increase, and$ 5.2 billion in the first six months of 2024, a 12.6% increase, driven by higher demand for aerospace products[111] - Lubrizol's revenues increased by 4.4% to $1.7 billion in Q2 2024, but decreased by 0.7% to$ 3.3 billion in the first six months of 2024 due to lower selling prices and unfavorable product mix[111] - Marmon's revenues decreased by 1.5% to $3.2 billion in Q2 2024 and 3.5% to$ 6.2 billion in the first six months of 2024, primarily due to reduced volumes in the Transportation Products group[111] - Clayton Homes' revenues increased by 8.7% to $3.1 billion in Q2 2024 and 8.9% to$ 5.9 billion in the first six months of 2024, driven by higher new home unit sales and increased financial services revenues[113] - Consumer products group revenues increased by $137 million (3.9%) in Q2 2024 and$ 278 million (4.0%) in the first six months of 2024, led by higher revenues from Forest River, Jazwares, and Brooks Sports[114] - Service group revenues increased by $30 million (0.6%) in Q2 2024 but declined by$ 138 million (1.3%) in the first six months of 2024, with TTI revenues declining by 10.6% in Q2 and 13.1% in the first six months[116] - Pre-tax earnings for the service group declined by $191 million (23.2%) in Q2 2024 and$ 437 million (26.3%) in the first six months of 2024, with TTI earnings declining by 50.8% in Q2 and 50.0% in the first six months[116] - Aviation services revenues increased by 10.4% in Q2 2024 and 9.5% in the first six months of 2024