Financial Performance - Net earnings attributable to Berkshire Hathaway shareholders for the third quarter of 2021 were $10,344 million, a decrease from $30,137 million in the same quarter of 2020[92]. - Net earnings attributable to Berkshire Hathaway shareholders were $1.496 billion in Q3 2021, up from $1.395 billion in Q3 2020, a 7.2% increase[128]. - Net earnings attributable to Berkshire shareholders were $50.1 billion in the first nine months of 2021, including after-tax gains on investments of approximately $29.4 billion[159]. - Berkshire's consolidated shareholders' equity at September 30, 2021, was $472 billion, an increase of $29.3 billion since December 31, 2020[159]. Insurance Operations - Insurance underwriting reported after-tax losses of $784 million in the third quarter of 2021, compared to a loss of $213 million in the same quarter of 2020[95]. - Losses and loss adjustment expenses for GEICO increased by $1.6 billion (23.7%) in the third quarter of 2021 compared to 2020, attributed to higher claims frequencies and severities[98]. - Unpaid loss estimates for insurance businesses were approximately $125.5 billion as of September 30, 2021, indicating significant potential future liabilities[94]. - The effective income tax rate for the third quarter of 2021 was 23.0%, compared to 26.6% in the same quarter of 2020[95]. Investment Performance - Investment and derivative gains/losses in 2021 were significantly influenced by market price changes, contributing to volatility in reported earnings[92]. - Interest and other investment income declined by $55 million (28.1%) in Q3 2021 and $412 million (47.4%) in the first nine months of 2021 compared to the same periods in 2020[118]. - Net investment income for the third quarter of 2021 was $1,161 million, compared to $1,015 million in Q3 2020, while for the first nine months it was $3,588 million compared to $3,769 million in the same period of 2020[117]. Railroad and Utilities - After-tax earnings from the railroad business increased by 14.2% in the third quarter of 2021 compared to 2020, driven by higher freight volumes[92]. - Railroad operating revenues increased by $590 million (11.8%) in Q3 2021 and $1,723 million (11.7%) in the first nine months of 2021 compared to 2020[122]. - Energy operating revenue for BHE was $5.225 billion in Q3 2021, up from $4.451 billion in Q3 2020, representing a 17.4% increase[128]. - Total revenue for BHE reached $7.013 billion in Q3 2021, compared to $6.226 billion in Q3 2020, a 12.7% increase[128]. Manufacturing and Retail - Manufacturing revenues were $17.5 billion in Q3 2021, a 15.3% increase, and $50.8 billion for the first nine months, up 17.5% year-over-year[135]. - Service and retailing revenues reached $21.3 billion in Q3 2021, a 10.2% increase, and $62.1 billion for the first nine months, up 12.3% compared to 2020[135]. - Retailing revenues totaled $4.5 billion in Q3 2021 and $13.9 billion in the first nine months, with pre-tax earnings of $414 million in Q3 and $1.2 billion year-to-date[147]. Capital Management - Berkshire repurchased $20.2 billion of its Class A and B common stock in the first nine months of 2021[159]. - Berkshire's parent company outstanding debt at September 30, 2021, was $21.8 billion, a decrease of $886 million since December 31, 2020[159]. - In the first nine months of 2021, Berkshire issued term debt of approximately $5.9 billion, with expected principal and interest payments of $27 million in 2021 and $121 million per annum from 2022 through 2025, totaling $8.8 billion thereafter[162]. Miscellaneous - The company experienced a year-to-date reduction of $420 million in estimated ultimate liabilities for prior years' loss events in 2021 compared to $190 million in 2020[104]. - There were no material changes in market risks as of September 30, 2021, compared to the previous Annual Report[166]. - Berkshire believes that normal litigation will not have a material effect on its consolidated financial condition or results of operations[168].
Berkshire Hathaway(BRK_A) - 2021 Q3 - Quarterly Report