Berkshire Hathaway(BRK_A) - 2024 Q1 - Quarterly Report

Operating Expenses - Railroad operating expenses decreased by $105 million (2.6%) in Q1 2024 compared to Q1 2023[89] - Fuel expenses declined by$ 110 million (11.4%) in Q1 2024 due to lower average fuel prices[89] - Compensation and benefits expenses increased by $94 million (7.2%) in Q1 2024, driven by wage inflation[89] - Equipment rents, materials, and other expenses decreased by$ 85 million (14.3%) in Q1 2024, primarily due to lower property taxes[89] Revenue and Earnings - Revenues of operating businesses increased to $89.869 billion in Q1 2024 from$ 85.393 billion in Q1 2023, reflecting a growth of 2.9%[145] - Insurance underwriting after-tax earnings increased by $1.7 billion in Q1 2024 compared to Q1 2023, benefiting from improved results at GEICO[146] - After-tax earnings of BNSF declined by 8.3% in Q1 2024 compared to Q1 2023, primarily due to unfavorable changes in business mix and lower fuel surcharge revenues[146] - Investment income after-tax earnings increased by$ 629 million in Q1 2024 compared to Q1 2023, primarily due to higher interest income from short-term investments[146] Lease Revenue - Fixed lease revenue increased to $1,552 million in Q1 2024 from$ 1,417 million in Q1 2023[92] - Variable lease revenue rose to $670 million in Q1 2024, up from$ 627 million in Q1 2023[92] Depreciation and Liabilities - Total depreciation expense for the first three months of 2024 was $178,288 million, compared to$ 177,616 million in 2023[90] - The balance of periodic payment annuities decreased to $10,749 million as of March 31, 2024, from$ 11,174 million at the end of 2023[98] - The balance of future policy benefits for life and health insurance decreased to $4,259 million as of March 31, 2024, down from$ 5,633 million at the end of 2023[99] - The net liabilities for unpaid losses and loss adjustment expenses increased from $102,447 million at the beginning of the year to$ 106,691 million by March 31, 2024, reflecting a rise of approximately 3.4%[106] - Incurred losses and loss adjustment expenses for the current accident year were $13,854 million in 2024, compared to$ 14,776 million in 2023, indicating a decrease of about 6.2%[106] - The company recorded net reductions of estimated ultimate liabilities for prior accident years of $634 million in the first quarter of 2024, which is 0.6% of the net liabilities at the beginning of the year[106] Debt and Borrowings - Berkshire repaid approximately$ 1.1 billion of maturing senior notes in the first quarter of 2024 and issued ¥263.3 billion (approximately $1.7 billion) of senior notes in April 2024[112] - BHE subsidiaries issued$ 5.1 billion of term debt with a weighted average interest rate of 5.4% during the first quarter of 2024[113] - The weighted average interest rate for Berkshire Hathaway's U.S. Dollar denominated borrowings due 2025-2047 is 3.6%, with total borrowings amounting to $3,742 million as of March 31, 2024[131] - Total borrowings for Berkshire Hathaway Energy Company and subsidiaries amount to$ 82,031 million, down from $85,579 million as of December 31, 2023, indicating a reduction of approximately 4%[133] Investments - As of March 31, 2024, the carrying value of investments in fixed maturity securities includes$ 4,503 million in U.S. Treasury and government agencies, $10,997 million in foreign governments, and$ 1,429 million in corporate bonds[18] - Investments in equity securities total $335,864 million, with a fair value increase from$ 325,182 million[18] - The total investments in Kraft Heinz and Occidental common stock are valued at $29,147 million, with a fair value of$ 28,128 million[18] - The fair value of preferred stock investments is reported at $8,609 million, utilizing discounted cash flow as the principal valuation technique[136] Legal Proceedings - The company is involved in ongoing legal proceedings related to wildfire damages, with a jury awarding$ 90 million in damages in June 2023, and further trials scheduled[124] - Estimated probable losses associated with the wildfires include fire suppression costs and property damages, subject to change as more information becomes available[124] - HomeServices of America is facing antitrust cases with potential damages totaling approximately $9 billion, including a jury verdict of$ 1.8 billion in the Burnett case[143] - HomeServices agreed to a proposed nationwide class settlement in the Burnett case, involving scheduled payments of $250 million over four years, pending court approval[143] Shareholder Actions - The balance of Class A common shares outstanding as of March 31, 2024, is 563,143 shares, a slight decrease from 567,775 shares at the end of 2023[137] - The company has a share repurchase program that allows for repurchases when the price is below intrinsic value, with no specified maximum number of shares to be repurchased[138] Other Financial Metrics - Cash paid for income taxes in the first quarter of 2024 was$ 339 million, compared to $312 million in the same period of 2023, marking an increase of about 9%[140] - The company reported interest expenses of$ 434 million for insurance and other, down from $491 million in the first quarter of 2023, a decrease of approximately 12%[140] - Life and health premiums decreased to$ 944 million in 2024 from $1,004 million in 2023, representing a decline of approximately 6%[131] - Investments in equity securities increased to$ 10,667 million as of March 31, 2024, up from $10,468 million at the beginning of the year, reflecting a gain of approximately 2%[136]