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Berkshire Hathaway(BRK_B) - 2022 Q4 - Annual Report
BRK_BBerkshire Hathaway(BRK_B)2023-02-26 16:00

Earnings Performance - After-tax earnings of BNSF railroad were relatively unchanged in 2022 compared to 2021, with a 16.1% increase in 2021 versus 2020 [158]. - After-tax earnings from utilities and energy business increased by 9.3% in 2022 compared to 2021, and 13.7% in 2021 versus 2020 [158]. - Earnings from manufacturing, service, and retailing businesses rose by 12.5% in 2022 compared to 2021, and 34.0% in 2021 versus 2020 [158]. - Net earnings attributable to Berkshire Hathaway shareholders for 2022 were a loss of 24.107billion,comparedtoaprofitof24.107 billion, compared to a profit of 90.728 billion in 2021 [579]. - The company incurred losses of 56.791billionin2022,comparedto56.791 billion in 2022, compared to 48.983 billion in 2021, reflecting an increase of approximately 16% [619]. Insurance Operations - Unpaid loss estimates for insurance liabilities were approximately 143billionasofDecember31,2022,upfrom143 billion as of December 31, 2022, up from 125 billion in 2021 [159]. - Pre-tax underwriting earnings for insurance operations were 393millionin2022,downfrom393 million in 2022, down from 607 million in 2021 [165]. - Losses and loss adjustment expenses for insurance were 9.889billionin2022,representing71.99.889 billion in 2022, representing 71.9% of premiums earned [165]. - The net unpaid losses and ALAE for accident years from 2013 to 2022 total 16,082 million [679]. - The incurred losses for private passenger auto insurance increased significantly in 2022 due to higher claims frequencies and severities [670]. Revenue Growth - Total revenues for 2022 were 311.184billion,anincreasefrom311.184 billion, an increase from 287.450 billion in 2021, representing an increase of 8.0% [579]. - Total revenues for 2022 reached 302,089million,upfrom302,089 million, up from 276,203 million in 2021, representing a growth of approximately 9.4% [665]. - Railroad, utilities, and energy revenue increased to 6,181millionin2022from6,181 million in 2022 from 5,990 million in 2021, a growth of 3.2% [633]. - The company’s total manufactured products revenue for 2022 was 207,771million,comparedto207,771 million, compared to 191,252 million in 2021, indicating a growth of approximately 8.6% [665]. - The company reported 24,765millioninindustrialandcommercialproductsrevenuefor2022,anincreasefrom24,765 million in industrial and commercial products revenue for 2022, an increase from 22,343 million in 2021 [665]. Investment Activities - Berkshire Hathaway acquired Alleghany Corporation for approximately 11.5billiononOctober19,2022[578].−ThefairvalueofinvestmentsinfixedmaturitysecuritiesasofDecember31,2022,was11.5 billion on October 19, 2022 [578]. - The fair value of investments in fixed maturity securities as of December 31, 2022, was 25.128 billion, with a cost basis of 25.173billion[598].−BerkshireHathaway′sinvestmentinfixedmaturitysecuritiesincluded25.173 billion [598]. - Berkshire Hathaway's investment in fixed maturity securities included 10.039 billion in U.S. Treasury and government agencies as of December 31, 2022 [598]. - The investment in Occidental preferred stock has an aggregate liquidation value of 10billion,withan810 billion, with an 8% annual dividend [623]. - Proceeds from sales of equity securities were approximately 33.7 billion in 2022, compared to 15.8billionin2021[627].AssetandLiabilityManagement−ThetotalassetsofBerkshireHathawayasofSeptember30,2022,were15.8 billion in 2021 [627]. Asset and Liability Management - The total assets of Berkshire Hathaway as of September 30, 2022, were 72.144 billion, with liabilities of 43.424billion[585].−Thenetliabilitiesfromunpaidlossesandlossadjustmentexpensesincreasedto43.424 billion [585]. - The net liabilities from unpaid losses and loss adjustment expenses increased to 102.447 billion as of December 31, 2022, from 83.704billionin2021[619].−Cashpaidforincometaxesin2022was83.704 billion in 2021 [619]. - Cash paid for income taxes in 2022 was 4.236 billion, down from 5.412billionin2021[618].−ThebalanceofloansandfinancereceivablesatDecember31,2022,was5.412 billion in 2021 [618]. - The balance of loans and finance receivables at December 31, 2022, was 856 million, up from 765millionin2021[628].−Thetotalleasepaymentsforoperatingleasesamountedto765 million in 2021 [628]. - The total lease payments for operating leases amounted to 5.651 billion as of December 31, 2022, with lease liabilities at 4.939billion[616].GoodwillandIntangibleAssets−Goodwillandindefinite−livedintangibleassetimpairmentchargeswere4.939 billion [616]. Goodwill and Intangible Assets - Goodwill and indefinite-lived intangible asset impairment charges were 157 million in 2022, down from 259millionin2021[158].−Goodwillimpairmentstotaled259 million in 2021 [158]. - Goodwill impairments totaled 11.0 billion as of December 31, 2022, remaining unchanged from 2021 [669]. - Goodwill and other intangible assets rose from 6,748millionin2021to6,748 million in 2021 to 7,010 million in 2022 [685]. - Intangible asset amortization expense was 1,233millionin2022,slightlydownfrom1,233 million in 2022, slightly down from 1,252 million in 2021 [638]. - Estimated amortization expense for intangible assets over the next five years is projected to be 1,253millionin2023,decreasingto1,253 million in 2023, decreasing to 877 million in 2027 [638]. Taxation - Net deferred income tax liability decreased from 89,679millionin2021to89,679 million in 2021 to 76,069 million in 2022 [685]. - Net unrecognized tax benefits were 440millionatDecember31,2022,downfrom440 million at December 31, 2022, down from 1,046 million in 2021 [687]. - The company has $383 million of tax positions that could impact the effective tax rate if recognized [687]. - The company anticipates no material increases in unrecognized tax benefits during 2023 [687]. - The company has settled income tax liabilities with the IRS for tax years through 2011, with ongoing audits for subsequent years [687].