table summarizes effects interest rates assets liabilities. assumed changes no changes factors. reflect best worst scenarios. results may differ. Dollars millions. Fair Value After Change Interest Rates decrease increase increase December 31, 2023 Assets Investments fixed maturity securities,758 equity securities,688,069 Loans receivables,190,187,409 Liabilities


Insurance,184,750,361 Railroad utilities energy,792,043 2022 Assets fixed maturity securities,128,659 securities,434 Loans receivables,428,249,228 Liabilities


Insurance,367,157 Railroad utilities,651,698,430


subsidiaries operate foreign jurisdictions transact currencies. hold investments companies currency risk. match assets liabilities currency use derivative contracts risks.


assets translation. Dollars insurance utilities energy manufacturing subsidiaries. impact foreign currency rates income. gains losses currency exchange rates earnings non-U. Dollar assets liabilities Berkshire. subsidiaries. summary years 2023 2022. Non-U. S. debt earnings liabilities reinsurance contracts Foreign currency translation income


subsidiaries use commodities manufacturing services. subject price risks. manage risks through pricing products services. price increases operating results. derivative contracts manage commodity price risks.


Risk Item 7 Financial Condition Operations.


Berkshire Hathaway. internal control financial reporting Securities Exchange Act 1934 Rule 13a-15(f). control reporting December 31, 2023 Securities Exchange Act 1934 Rule 13a-15(c). criteria Internal Control—Integrated Framework (2013) Committee Sponsoring Organizations Treadway Commission. concluded effective December 31, 2023.


control financial reporting December 2023 audited Deloitte Touche page K-67.


Statements Control Reporting


audited balance sheets Berkshire Hathaway. subsidiaries December 31, 2023 2022 earnings income equity cash flows three years 2023 notes. audited control financial reporting December 2023 Internal Control Integrated Framework (2013) Commission.


financial statements present position December 31, 2023 2022 results operations cash flows three 2023 accounting principles. Company maintained internal control financial reporting December 2023 Internal Control Integrated Framework (2013) COSO.


Note 1 2023 Accounting Standards 2018-12 Long-Duration Contracts retrospective.


management responsible for financial statements internal control assessment Report on Internal Control. express opinion financial statements internal control audits. public accounting firm registered Company Accounting Oversight Board independent. federal securities laws rules Securities and Exchange Commission PCAOB.


conducted audits standards PCAOB. standards require plan assurance financial statements free misstatement error fraud internal control.


audits of financial statements included risks misstatement error or fraud. included examining evidence amounts disclosures. accounting principles estimates management presentation. audit of internal control over financial reporting included understanding risk material weakness testing design effectiveness risk. other procedures necessary. audits provide reasonable basis for opinions.


internal control over financial reporting assurance reliability financial reporting preparation financial statements for accounting principles. includes policies procedures maintenance records transactions dispositions assets assurance transactions recorded necessary preparation financial statements receipts expenditures with authorizations management directors assurance prevention of unauthorized acquisition use disposition assets financial statements.


limitations internal control financial reporting prevent misstatements. projections effectiveness future risk controls compliance policies deteriorate.


critical audit matters from current-period audit of financial statements communicated to audit committee relate to accounts disclosures material challenging complex judgments. communication alter our opinion on financial statements not providing separate opinions.


Losses Notes 1 16 statements


unpaid losses expenses include property casualty insurance contracts. assumptions anticipated expected loss ratios patterns.


subjectivity estimating assumptions audit liabilities December 31, 2023 auditor judgment effort actuarial specialists.


audit procedures related to key assumptions affecting claim liabilities included tested effectiveness controls over liabilities. tested underlying data for actuarial analysis. developed independent estimates loss data compared to. compared prior year estimates to actual experience potential bias in.


Losses Reinsurance Contracts Notes 1 17 statements


unpaid losses adjustment expenses contracts include property casualty. assumptions anticipated claims expected loss ratios patterns.


audit procedures key assumptions included tested effectiveness controls liabilities.


tested data actuarial analysis including historical claims inputs. actuarial specialists developed independent claim liability estimates reinsurance contracts compared estimates. evaluated process management. compared prior year estimates to experience potential bias.


Goodwill Assets Notes 13 statements


evaluation goodwill assets impairment fair value carrying value. December 31, 2023 goodwill $8 billion assets $13 billion Precision Castparts Corp. uses discounted earnings value revenue earnings discount rates.


significant judgments management PCC goodwill assets difference fair values values audit estimates auditor judgment. Increased audit effort fair value specialists estimates future revenue EBIT discount rate.


audit procedures related future revenue EBIT selection discount rate for PCC unit customer relationships included tested controls over goodwill indefinite-lived intangible assets forecasts future revenue EBIT discount rate. evaluated revenue EBIT comparing forecasts results. evaluated current revenue EBIT forecasts historical results long contracts customer demand build schedules analyst industry reports peer disclosures. evaluated valuation methodologies terminal growth rates discount rate developed independent estimates compared. evaluated valuation terminal growth rates. estimates.


auditor 1985.


31, Insurance Cash,672,260. Treasury Bills,774 maturity securities,128 equity,050 Loans receivables,208 receivables,490 Inventories,366 Property plant equipment,113 lease,584 Goodwill intangible assets,187 Deferred charges reinsurance Railroad Utilities Energy Receivables Property equipment,268 Goodwill,597 Regulatory assets,062,463,069,978,465


Includes. Treasury Bills months. billion 2023. billion 2022.


LIABILITIES EQUITY losses,472 reinsurance,647,415 Unearned premiums,507,657 Life insurance,213,753 liabilities,370 Accounts payable accruals liabilities,402,201 Aircraft repurchase lease revenues,253


,341,226 Railroad Utilities Accounts,461 liabilities,369


,858,190 taxes deferred,009,368 liabilities,208,784 interests,261 equity stock Capital,480 income earnings,350,127 Treasury stock,802 Berkshire Hathaway equity,273 Noncontrolling interests,236,257 equity,465


Ended December Revenues premiums,460 Sales revenues,687,043 Leasing revenues,416 Interest dividend income,561 Railroad Utilities Energy Freight revenues,791 Utility revenues,891 Service income,161,229 Total revenues,185 Investment gains,855,899,542 Costs expenses losses,187 Life annuity health benefits expenses,270,559 sales services,569,138 leasing Selling expenses,605,843 Interest expense,955 Railroad Utilities Freight expenses,464282######14,477 Utilities energy expenses,016 Interest,745,189,137 costs expenses,144,752 income taxes equity(32,363,975 Equity taxes,166,500 Income tax(8,502,912 earnings,147(21,998,949 noncontrolling interests Berkshire Hathaway shareholders,223,759 Class A share(15,494,554 Class B share. Class A shares,880,876######1,510,180 Class B shares,173,319,709,203,313,269,867


Net earnings B share-hundredth. Note 22.


Ended December 31, Net earnings,147(21,998,949 income Unrealized gains investments(713 income taxes Foreign currency translation,138,011 Long-duration insurance contract discount rate changes,108 taxes(1,540 benefit pension plans income taxes income Comprehensive income,988,838 noncontrolling Berkshire Hathaway shareholders#97,512,688,808


Hathaway stock capital- controlling Balance December 31, 2020,634,243,336 Adoption ASU 2018-12(5,751,428 Balance January 1, 2021(9,994 Net earnings (loss,949 income Acquisition common stock Transactions noncontrolling interests(471 Balance December 31, 2021(8,123(59,795,299 Net earnings (loss(22,759(21,998 income Acquisition common stock(8,031 Transactions noncontrolling interests,174(1,599 Balance December 31, 2022,052 Net earnings (loss,147 income,318 Acquisition common stock(8,976 Transactions noncontrolling(687#,974,661 Balance December 31, 2023,488,763#,350(76,802,236


Ended December 31, Cash flows activities Net earnings,147(21,998,949 Adjustments Investment losses,855 Depreciation amortization,206 Changes operating assets liabilities Unpaid losses expenses Deferred charges retroactive reinsurance Unearned premiums Receivables loans,949 Inventories Other assets liabilities Income taxes,330 Net cash flows operating activities,427 activities Purchases equity securities,462 Sales,849 Purchases.Treasury Bills maturity securities,007,637 Sales.,188 Redemptions maturities.Treasury Bills securities,402 Acquisitions cash(8,604,594 Purchases property equipment lease,409(15,464(13,276 cash flows investing(87,601,392 financing borrowings insurance,961 Repayments borrowings(5,921(1,502(3,032 borrowings utilities energy Repayments,390,426,016 short term borrowings Acquisitions treasury stock(9,171(7,854(27,061 transactions noncontrolling interests,147,979(695 Net cash flows financing,662 foreign currency exchange rate changes(394 Increase cash equivalents restricted cash,310,396 Cash equivalents restricted cash,643,399 Insurance Other#33,672#32,260#85,319 Railroad Utilities Energy,350######3,551######2,865# Restricted cash assets####621######588######522,643,399#88,706


Berkshire Hathaway. subsidiaries insurance utilities energy manufacturing service retailing. Berkshire subsidiaries. Note 26. acquisitions Note 2. reporting Railroad Utilities Energy subsidiaries separately assets capital expenditures debt not guaranteed Berkshire.


Consolidated Financial Statements include Berkshire with subsidiaries affiliates controlling financial interest. controlling interest reflects majority voting interests. consolidate variable interest entities power direct activities absorb losses receive benefits. Intercompany accounts transactions eliminated. immaterial balances reclassified conform current presentations.


prepare Consolidated Financial Statements accounting principles estimates assumptions assets liabilities revenues expenses. estimates unpaid losses adjustment expenses error uncertainty claim costs. deferred charges reinsurance contracts fair values financial instruments evaluations goodwill assets require judgment. results differ estimates.


businesses impacted by actions COVID-19 virus geopolitical conflicts supply chain disruptions actions slow inflation. economic effects longer. estimates Consolidated Financial Statements long-lived assets goodwill intangible assets credit losses losses insurance reinsurance contracts may subject to adjustments.


investments. Treasury Bills


Cash equivalents demand deposit accounts investments three months.-term Treasury Bills three months year.


classify fixed maturity securities acquisition balance sheet. held-to-maturity amortized cost. trading acquired sell carried fair value earnings. other securities available-for-sale fair value. available-for-sale. amortize original cost maturity value earnings interest method.


record gains losses maturity securities sold. unrealized loss loss excess amortized cost over value before price. evaluate unrealized losses. decline creditworthiness. record allowance credit losses excess amortized cost over value charge earnings cash flows less contractual cash flows. allowance decreased facts circumstances. unrealized loss not recognized income.


carry equity record Consolidated Statements Earnings gains losses.


utilize equity method investments significant influence not control over financial policies. influence presumed investor 20% voting interests. presumption overcome facts. apply equity method investments common stock identical interests apply not in-substance common stock GAAP.


equity method record investment cost increase carrying amount net earnings losses income. record dividends equity distributions reductions carrying value. losses reduce carrying zero additional losses investments at-risk. losses based change book value.


manufactured home commercial site-built home. carry all loans amortized cost credit losses maturity. Acquisition origination commitment fees premiums discounts amortized investment income yield adjustments.


credit losses include non-collection risk. losses home loans based future principal payments expenses charge-off foreclosure provisions. credit quality loans performing. estimates consider default collateral recovery runoff rates interest rates cash time foreclosure. current conditions forecasts.


Loans delinquent 30 days due. loans over 90 interest reversed. collections principal interest owed delinquent. resume less 90 delinquent.


Loans non-performing foreclosure started. interest income recognized until cured modified. interest recognized new. Foreclosed loans charged collateral sold. Loans not evaluated charge-off future collectability collateral.


receivables include balances insurance premiums reinsurance losses. short-term collection less year. Reinsurance recoverables ceded contracts insurance. unpaid losses expenses property casualty contracts benefits life health contracts. uncollectible balances.


measure credit losses history. consider current conditions forecasts. reinsurance review credit quality right-of-offset provisions collateral. charge receivables against allowances after collection exhausted.


carry assets liabilities derivative contracts Consolidated Balance Sheets. Balances net reductions netting agreements. record changes value derivative contracts regulatory assets liabilities inclusion regulated rates.


defined GAAP fair value price sell asset transfer liability between market participants principal. Adjustments transaction required illiquid disorderly markets fair value. alternative valuation techniques value transaction. Market participants independent knowledgeable able willing not duress. nonperformance credit risk fair value. judgment interpreting market data value. estimates not indicative current future market exchange.


Inventories manufactured goods homes. materials labor overhead. 2023 30% inventories remainder first cost. Non-LIFO inventories lower value. excess LIFO $2. 3 billion December 2023 $2. 5 billion December 2022.


use property plant equipment operations. own equipment lease. record additions cost improvements betterments. constructed assets materials labor services indirect costs capitalized. include interest construction. assets utility energy subsidiaries operations capitalized costs allowance funds construction equity. repairs maintenance costs capitalization criteria charged.


Depreciation regulated utilities determined group depreciation methods studies regulator. composite rate investment class property. assets retired sold no gain loss recognized. Gains losses disposals recorded earnings.


lives track 10 to 100 locomotives cars equipment 6 to 45 years. utilities energy utility 5 to 80 gas 3 to 80 power plants 2 to 50 buildings improvements 10 30 machinery equipment 3 10 years. depreciate property straight-line. buildings improvements 5 to 50 years machinery equipment 3 to 25 years furniture fixtures 3 to 15 years. depreciate equipment lease straight-line 3 to 35 years. declining balance depreciation-earning.


evaluate property plant equipment lease impairment carrying value recoverable sale. event assess estimated cash flows residual value disposal carrying value. If exceeds reduce value to fair value record impairment loss earnings except regulated utility energy subsidiaries impacts regulation.


property. record right-of-use liabilities. assets right use lease term liabilities obligation payments. lease payments include fixed variable index rate. term non-cancellable. lease contracts renewal options variable payments performance usage. Options not-use assets liabilities unless certain. incremental borrowing rates lease liabilities. assets review impairment. separate class record liabilities leases one year less.


Goodwill excess acquisition price over net assets. evaluate goodwill annually. fair value unit. methods market quotations liability values valuation techniques discounted future net earnings multiples. carrying amount exceeds fair value excess charged earnings impairment loss.


Intangible assets indefinite lives tested impairment annually impaired. judgment required estimating values goodwill impairment tests. amortize assets expected consumption economic benefits over estimated lives. reviewed impairment amount recoverable.


earn insurance premiums property contracts protection. term contract unearned premiums monthly daily. retroactive contracts received earned inception loss. life reinsurance periodic payment annuity contracts earned when due. periodic payment annuity earned inception. Premiums net ceded reinsurers. experience-rating provisions reflect estimated loss experience.


Sales service revenues recognized goods transferred customer. customer obtains control. Revenues based consideration promises deliver.


manufacture distribute industrial building consumer products. sales contracts provide products wholesale consideration. Contracts represent orders prices. contain single multiple performance obligations. allocate revenue based prices.


Sales revenues reflect returns allowances late delivery penalties volume discounts incentives contingent future events. include state local excise taxes products levied. exclude value-added taxes. include shipping fulfillment activities control. after control sales revenue.


Product sales revenues recognized control customer pickup delivery acceptance. recognize sales revenues costs contracts bridge structural steel castings forgings aerostructures. Control product transfers customer manufactured. no alternative use requires compensation if terminated.


obligation under freight rail contracts freight origin to destination. obligations represented by bills of lading services. revenues based on product origin destination contract incentives in rate agreements tariffs road agreements pricing quotes. transaction price per car/unit origin to destination. Freight revenues recognized over time. Revenues represent service completed. Invoices issued paid within 30 days or less. incentives for volume locations revenue shipments.


Utilities energy revenues from electricity natural gas sales. tariff-based approved regulatory commissions. energy transmission distribution natural gas obligations products services. revenues equivalent to value performance include billed unbilled amounts. Payments due within 30 days of billing. Rates for established by regulators transaction price allocation. preliminary rates final approval refund liability for refunds accrued. Nonregulated energy revenues include fuel sales renewable energy products. Fuels diesel gasoline retail wholesale. recognized excise taxes.


service revenues contracts obligations benefits. real estate automotive repair aircraft management aviation training franchising news distribution.


Leasing revenue recognized term lease based usage contract. contracts operating leases.


record liabilities unpaid losses expenses insurance reinsurance contracts balance sheet. estimated payment time.


base liability estimates on loss reports case estimates incurred losses. expenses include paid claims settlement costs changes liabilities. net recovered recoverable ceded reinsurance contracts. contracts relieve ceding company indemnify.


record unpaid losses adjustment expenses retroactive reinsurance contracts Note 1. record deferred charge assets excess claim liabilities premiums. amortize assets claim settlement periods interest. Changes loss payments assets. apply retrospectively included insurance losses adjustment expenses Consolidated Statements Earnings.


capitalize costs sale insurance contracts. include commissions taxes. expense underwriting costs. casualty amortize costs premiums earned. long life health amortize insurance in-force term. costs $4. 6 billion $3. 8 billion December 31, 2023 2022 $3. 9 billion $3. 2 billion property casualty insurance contracts.


Liabilities for life annuity health insurance represent cash outflows payments expenses less benefits. Periodic payment annuity reinsurance contracts limited payment contracts GAAP. liabilities include future payments deferred profit liability excess gross premiums over net premiums.


future cash flows claims premiums expenses investment yields mortality morbidity lapse rates. Cash flow assumptions reviewed annually recorded earnings. discount rate assumptions liabilities revised bond yields duration currency. contracts issue year. recorded income.


energy subsidiaries prepare financial statements regulated operations effects costs return revenues rate-setting. costs deferred assets income accrued liabilities.


assets liabilities amortized into operating expenses revenues future periods. assessed for future inclusion rates regulatory changes rate orders. If inclusion charged credited to earnings returned customers.


accounts subsidiaries measured using currencies. Revenues expenses translated into. Dollars average exchange rate assets liabilities translated end reporting period. net effects translating included shareholders’ equity income. Gains losses from transactions remeasurement currency included in earnings.


Berkshire files consolidated federal tax return. subsidiaries. tax returns. foreign jurisdictions. tax liabilities calculated accrued. include deferred tax provisions.


Deferred income tax assets liabilities computed differences financial tax bases enacted tax rates. Changes charged credited. included tax expense. effect changes tax rates charged credited expense enactment. Valuation allowances established for assets realization likely.


Liabilities established uncertain tax positions tax returns meet-likely threshold merits. Estimated interest penalties income tax expense.


adopted Accounting Standards Update 2018-12 Long-Duration January 1, 2023 modified accounting reporting disclosures long-duration insurance contracts. 2018-12 applied January 1, 2021 contracts. cash flow earnings discount rate income.


Financial Statements 2022 2021 revised retrospective adoption. discount rate changes recorded income. increased net earnings Berkshire Hathaway shareholders $142 million 2021 $60 million 2022. effects immaterial statements.


effects ASU 2018-12 financial. December 31, January 1, 2021 Life annuity health insurance benefits,836 policyholder liabilities,367 Income taxes deferred,403 income,243 earnings,949 Berkshire Hathaway equity,736


Accounting pronouncements 31,


March 2023 Financial Accounting Standards Board issued Accounting Standards Update 2023-02 Tax Credit. permits tax equity investments proportional amortization. affordable housing tax credit investments. effective years December 15 2023. adoption Consolidated Financial Statements.


November 2023 FASB issued Accounting Standards Update 2023-07 Segment expenses segment interim. effective fiscal years December 15 2023 after December 15 2024. evaluating impact Consolidated Financial Statements.


2023 FASB issued Accounting Standards Update 2023-09 Income Tax disclosures income tax reconciliations. tax rate reconciliation amounts percentages taxes foreign tax effects credits nontaxable items. quantitative threshold disaggregation jurisdiction. net income taxes federal state foreign jurisdictions five percent threshold. effective fiscal years December 15 2024 early. evaluating impact Consolidated Financial Statements.


acquisition strategy consistent earning returns management. Financial results Consolidated Financial Statements acquisition dates.


January 31, 2023 acquired 41. 4% Pilot Travel Centers $8. 2 billion. increased interest 80% controlling. February 1, 2023. fuel utilities energy Consolidated Balance Sheet Statement Earnings February 1 2023. owned 38. 6% interest PTC equity January 2023.


PTC operates 650 75 fuel locations 44. states five provinces Pilot Flying J wholesale marketing. sells diesel fuel. water disposal oil fields. revenues earnings months December 2023 $51. 7 billion $603 million. remeasured. 6% investment PTC fair gain $3. billion excess. valued noncontrolling interests fair value January 31, 2023.


Pilot Corporation holder interests PTC annual option cash interests 2024. redemption price based PTC’s earnings preceding year adjustments net debt. filed lawsuit Berkshire 2023 purchase price. Berkshire filed counterclaim. settled January 2024 acquired interest $2. 6 billion interest 100%.


assets liabilities interests January 2023 millions. Goodwill deductible income tax. Assets acquired interests Property plant equipment payable Goodwill liabilities intangible assets,047 assumed,794 interests redeemable,361 Assets acquired,520,155 assets


2022 Berkshire acquired Alleghany Corporation $11. 5 billion. operates property insurance non-financial businesses. deductible. assets liabilities. Assets acquired Cash. Bills,762 losses expenses,080 securities premiums Loans receivables,287 payable,169 Goodwill,900 liabilities intangible assets Assets acquired,590 assumed,085 Net assets


unaudited revenue consolidated earnings December 31, 2022 Alleghany PTC. Revenues,115 earnings Berkshire Hathaway shareholders Class A common share(16,303


September 1, 2023 Berkshire Hathaway Energy acquired 50% Cove Point LNG $3. 3 billion increased interest 25% 75%. 100% interests. Cove Point consolidated subsidiary direct activities absorb losses benefits. acquired third quarter noncontrolling interest. recorded charge ownership $667 million capital noncontrolling deferred income tax assets.


Investments fixed maturity securities summarized millions. Cost Gains Value December 31,. Treasury. government corporations agencies,308 Foreign governments,788,805 Corporate bonds,758 December 31,. Treasury. government corporations agencies#10,039 Foreign governments,454,327 Corporate bonds,195,173


95% foreign government holdings rated AA December 31, 2023. amortized cost estimated value fixed maturity securities summarized contractual maturity dates. differ prepayment rights. one year securities Amortized cost,888,744 Fair value,875,754,758


equity. Basis Gains December 2023 Banks insurance finance,136,176,312 Consumer products,248,895,143 Commercial,355,387,416,842


79% value five Express $28. 4 billion Apple. $174. billion Bank America $34. billion Coca-Cola $23. 6 Chevron $18. 8 billion. 2022 Banks insurance finance Consumer Commercial


75% value five Express $22. Apple. $119 Bank America $34. Coca-Cola $25. Chevron $30.


2019 invested $10 billion Stock Occidental Petroleum warrants. 2022 stock. voting interest exceeded 20% August 4 2022 adopted equity method. stock warrants fair value equity Balance Sheets not stock eligible equity.


Occidental stock accrues dividends 8% redeemable 2029 redemption 105% liquidation value. December 2023 liquidation $8. 5 billion. issued redemption notifications $1. 5 billion 110% plus dividends. redemptions due excess distributions.


Occidental warrants purchase. 86 million shares $59. 62 per share. one year stock redeemed.


December 31, 2023 owned 151. 6 million shares American Express common stock 21%. Since 1995 agreement American Express agreed vote shares recommendations Board. agreed passivity commitments Federal Reserve influence policies American Express. use equity method investment investment fair value.


Berkshire subsidiaries businesses equity. significant investments Kraft Heinz Company Occidental. December 31, 2023 owned 26. 7% Kraft Heinz 27. 8% Occidental warrants.


Kraft Heinz markets condiments cheese dairy meals meats beverages coffee grocery. Occidental energy company oil gas exploration chemicals. financial information. equity one-quarter.


stock Kraft Heinz Occidental traded. fair carrying values equity summarized millions. Value Value 31, Kraft Heinz,230,937,035,249 Occidental,484,242,629,066,050


December 31, 2023 excess investments Kraft Heinz Occidental 9% 6%. evaluated investments impairment concluded impairment charges earnings not required.


equity investments 50% Berkadia Commercial Mortgage Jefferies through January 2023. mortgage banking sales real estate loans. borrowing $1. 5 billion policy Berkshire insurance. Jefferies losses.


accounting. investment $3. 2 billion 2022. earnings $105 million 2023 $812 million 2022 $474 million 2021.


December 31, 2023 Kraft Heinz Berkadia equity. Occidental exceeded equity September 30, 2023 $9. 6 billion. excess goodwill.


earnings distributions equity investments summarized table millions. earnings 2023 Occidental fourth quarter first nine months 2023. earnings Occidental August 4 September 30. Received ended December Kraft Heinz#758#628#269#521 Occidental####323#1,973#1,863#886#721#829#1,578


Kraft Heinz. 30 2023 31, 2022 Assets,339 Liabilities,617 25 2021 Sales,640,485,042 earnings shareholders,855,363


Occidental. 30, 2023 31, 2022 Assets,609 Liabilities months 2023 revenues,715 earnings shareholders


Investment derivative contract gains three years 2023 summarized millions. Investment gains Equity securities unrealized investment gains securities,144,120,375 gains securities sold,047,372 Fixed maturity securities gains losses(684 Investment gains (losses Derivative contract gains (losses,855,899,542


securities gains losses unrealized. proceeds $40. 6 billion 2023 $33. 7 billion 2022 $15. 8 billion 2021. gains losses sales proceeds fair value. taxable gains losses difference proceeds cost. gains $5. 0 billion 2023 $769 million 2022 $3. 6 billion 2021. gains $3. 0 billion 2023 remeasurement. 6% interest PTC acquisition accounting.


Loans finance receivables summarized millions. allowances discounts,664 Allowances credit losses Unamortized discounts points,208


home commercial site-built. Reconciliations credit losses three years 2023 millions. Balance year#856#765#712 Provision credit losses####169######124######88 Charge-offs recoveries(75# Balance December 31#950#856#765


December 31, 2023 home loan balances evaluated impairment 96% balances current. summary performing non-performing home loans before discounts allowances year origination December 31, 2023 millions. Year Performing,368,321,232 Non-performing,379,338,344


lender commercial loan agreements $850 million 2023 $1. 9 billion 2022. decline balances prepayments dispositions. secured evaluated credit losses.


receivables millions. Insurance Insurance premiums,395 Reinsurance recoverables,060,106 Trade receivables,449,269,154 Allowances credit losses,490 Railroad utilities energy Trade receivables,182 Allowances credit losses


Receivables 2023 $2. billion. losses $513 million $409 million 2022 $441 million 2021. Charge-offs $474 million $432 $420.


Inventories insurance businesses millions. 31, Raw materials,381 Work process Finished goods Goods resale,782,159,366


Inventories utilities $4. 2 billion 2023 $1. 7 billion.


summary property plant equipment businesses millions. Land buildings improvements Machinery equipment,010,690 Furniture fixtures,634,298 depreciation,604,185,113


summary property equipment utilities energy businesses millions. utility generation transmission distribution interstate gas pipeline utility subsidiaries. Assets PTC utilities energy. Railroad Land track,350 Locomotives freight cars equipment,256 Construction,124 Accumulated depreciation,464,199,225 Utilities,195,759 Interstate gas pipeline,226,328 power plants,650 Land buildings improvements Machinery equipment Construction Accumulated depreciation,043,268


Depreciation expense three years 2023 millions. Insurance,388,276 Railroad utilities energy,181,392,457,308


Equipment lease aircraft trailers intermodal containers storage units furniture. summarized millions. Railcars Aircraft,537,667,212,144,491 Accumulated depreciation,197,584


Depreciation equipment $1,266 million 2023 $1,209 2022 $1,158 million 2021. Fixed variable lease revenues summarized. Fixed lease,184 Variable


summary future lease receipts December 31, 2023 millions. $#3,942,988


property operating leases. lease buildings offices facilities. lease-use assets liabilities accounts payable accruals. Information leases millions.-of-use assets liabilities term discount rate December 31, 2023,277,299. December 31, 2022.


summary future lease payments liabilities December 2023 2022 millions. 1 2 3 4 5 lease payments liabilities December 31 2023#1,422,172,218,299 2022(712


operating lease expense three years 2023 summarized millions. lease,361#1,426 Short-term lease Variable lease#1,803


Reconciliations value goodwill 2023 2022 millions. Balance year,875 Business acquisitions,347 remeasurements foreign currency translation Balance end year,119


goodwill. billion December 31, 2023. 2022.


intangible assets summarized millions. 31, 31, 2022 carrying amount amortization carrying value Insurance other Customer relationships,305#7,901,404,765,174 Trademarks names Patents technology,238,109,129,748,150,988,661,327,461,274,187 Railroad utilities energy Customer relationships contracts#4,092#791,301 Trademarks names,174,858#1,045#7,813


railroad utilities energy. net value December 2023. billion.


$1,828 2023,233 2022,252 2021. 2024 $2,059 2025,988 2026,898,754 $1,684. indefinite $18. 9 billion 2023 $18. 3 billion 2022 trademarks.


cash flow millions. Cash Income taxes,236,412 Interest Insurance,150 Railroad utilities energy,725,195,162 Non-cash investing Liabilities,938,186 lease liabilities right-use,118


restricted statutes. subsidiaries declare $31 billion dividends 2024. fixed maturity securities short-term. $5. 2 billion 2023 $4. 9 billion 2022.


shareholders’ equity. insurance subsidiaries $303 billion December 2023 $272 billion 2022. surplus differs assets liabilities. deferred charges life annuity policy acquisition costs unrealized gains deferred income taxes GAAP not statutory. values assets goodwill non entities recognized.


unpaid losses expenses excluding retroactive reinsurance contracts three years 2023. liabilities 2022 Alleghany acquisition.Balance Gross liabilities,472,664,854 Reinsurance unpaid losses,025,960 Net liabilities Incurred losses expenses year years,672 Paid losses adjustment expenses year,184,236 Prior years,065,904,249,319 Foreign currency Net liabilities acquired businesses Balance December 31 Net liabilities,704 Reinsurance unpaid losses,960 Gross liabilities,472,664


claim liabilities property casualty insurance costs-not-reported claims. Incurred losses expenses current. net reinsurance recoveries. losses $150 million $925 million 2023 $3. 1 billion 2022$2. 5 billion Hurricane $2. 9 billion 2021$1. 5 billion Hurricane Ida. losses private passenger auto insurance declined 2023 lower frequencies severities increased 2022 2021.


reductions $3. 5 billion 2023. 7 billion 2022. 1 billion 2021 losses expenses. 5% 2023. 2% 2022. 0% 2021.


reduced liabilities insurance $2. 1 billion 2023. 2022 $2. 4 billion 2021. reductions property. $1. 4 billion 2023 $1. 6 billion 2022 $718 million 2021.


liabilities environmental asbestos exposures $2. billion December 2023 $2. 1 billion December 31, 2022. change legal regulatory environment. estimate losses.


information claim liabilities. occurrence settlement. reconciliation unpaid losses loss adjustment expenses consolidated liabilities December 31, 2023 millions. Primary Liability Compensation Casualty Unpaid losses ALAE,477,166,230,393,502 Reinsurance recoverable Unallocated loss adjustment expenses,467 Other losses Unpaid losses adjustment expenses


liabilities private passenger auto liability damage. unpaid liabilities actuarial loss. adjusted loss patterns. include average case development IBNR estimates.


establish average liabilities damage claims case reserves insufficient time minor damage claims. establish case loss estimates loss adjustment expenses facts merits.


Claim estimates reflect uncertainty damage longer claim-tails time. establish additional case development liabilities percentages liabilities. unreported claims IBNR liabilities estimated ultimate claims coverage historical data deducted. average cost per unreported claim produces IBNR liability estimate. record supplemental liabilities difficult.


damage liability losses ALAE summarized accident year. IBNR liabilities December 31, 2023 estimated salvage subrogation recoveries. Claim counts accidents policy coverage. counts. Number Reported coverages. millions.


Losses ALAE December Accident Year Liabilities Claims 2022,138,699,161 2023,273,295 losses,972 Paid Losses ALAE December Year,251,731 2023,567 losses ALAE,298 unpaid losses ALAE 2022 2023 2022 unpaid losses


Losses ALAE December 31, Accident Year Case Development Liabilities Claims 2019,901,678,191,151,168,797 2020,024,697,123 2021,481,457,229,446,645,903,316,360 2023 losses ALAE Paid Losses ALAE December Accident Year,671,851,084 2020,794 2021,681 2023 losses unpaid losses ALAE 2019 2023 accident unpaid losses ALAEALAE


liabilities losses expenses medical liability workers’ compensation casualty insurance. losses ALAE summarized accident year disaggregated compensation. liabilities December 31, 2023. cumulative claims no liability payment. Dollars millions.


estimate losses adjustment expenses medical liabilities actuarial methodologies Bornhuetter insured loss exposures trends. methodologies produce estimates best estimate. study accident years adjust estimates claim age coverage experience.Losses ALAE December 31, Accident Year Case Development Liabilities Claims thousands 2014#1,370,375,305#1,246#1,218,127#1,061#1,033#1,029#1,007 2015,374,342####1,269,157#12,392,394,341,188#15 2017,382,349,315#21 2018####1,616#24 2019#21 2021,787####1,053#25 2022####1,403#20#17losses ALAE,960###### Paid Losses ALAE December 31, Accident Year 2014#396#540#671#752 2015####822 2017 2018 2019####314 2021 2022 losses ALAE,277###### unpaid losses ALAE 2014 2023 accident years,683###### unpaid losses ALAE before 2014unpaid losses


evaluate loss adjustment estimates workers’ compensation casualty claims Bornhuetter-Ferguson chain-ladder paid incurred data. segregated state frameworks. study lost wages medical expenses costs investigations administration. establish case liabilities facts circumstances. excess losses case-basis liabilities included IBNR liabilities.Losses ALAE December 31, Accident Year Case Development Liabilities Claims thousands 2014#2,138#2,064 2015####2,539,455,428,402,408#120,931,793######2,772 2017,299,310,322,320,321 2018,886####3,967,030,091,177 2019####4,623#184,030####4,774####1,467 2021####5,882,455#316 2022####6,757,646#308,299,187 losses ALAE Paid Losses ALAE December 31, Accident Year 2014#286#683#1,002,600 2015####804,187####908,359######1,765,998,140 2017####1,133######1,645####2,050,279,492 2018,340####1,902####2,324,746 2019####1,598,214####1,498####2,066 2021 2022 losses ALAEunpaid losses ALAE 2014 2023 years,643###### losses 2014 ALAE


methodologies estimates property casualty liabilities. include loss Bornhuetter-Ferguson frequency severity ground-up techniques.


claim liabilities losses ceding companies case development IBNR estimates. estimates individually bulk contracts. evaluate losses establish liabilities.


IBNR liabilities affected loss patterns ratios evaluated-by-contract. liabilities catastrophe based per-contract ultimate cost loss. Claim count data ceding companies unreliable.


incurred paid losses ALAE BHRG disaggregated shorter. contracts coverage multiple lines business report loss. allocated losses property casualty internal estimates. losses ALAE summarized accident year. IBNR development liabilities December 31, 2023. millions.


Losses ALAE December Accident Year Case Development Liabilities 2014#3,095,725,432,400 2015,605####3,414,232,253,255,248,272,155,150,139,117,106 2017,397####5,791 2018,437,293,299,249 2019,129####4,901####162,208####6,876####6,657 2021 2022,880,453,228,140 losses ALAE,885Paid Losses ALAE December Accident Year 2014,135,187,218,242,272,295 2015,210,721,933,214,167,632,741,820 2017,348,171,364,454 2018,735,020,265 2019,898,058####3,584####4,634,298 2021,095,414 2022,333,777 losses,855 unpaid losses ALAE 2014 – 2023 accident,030 unpaid losses ALAE accident losses


Losses ALAE December Accident Year Case Development Liabilities 2014#3,507,672,619#3,456,334,298,265#424 2015,628,668,364,310,312####373,788,870,819,775,746,773 2017,039,351,244,176,165,222 2018,489,358,285,370 2019,214,231 2021,310,285####5,957,299 2022,112 losses ALAE#49,870 Paid Losses ALAE December Accident Year 2014#429,390,103,405,493 2015####995,197,481,359,149,420,789,963 2017,478,727,945,171 2018,792,258,637 2019,423,190,736,715,379 2021 2022,338 losses ALAE,044 unpaid losses ALAE 2014 2023 accident yearsunpaid losses ALAE accident 2014,393


claims net losses ALAE accident year data tables. percentages average net losses ALAE year year 1 current accident year. Annual Percentage Payout Incurred Losses Age Net Reinsurance GEICO Physical Damage GEICO Auto Liability BH Primary Medical Professional Liability Primary Workers’ Compensation Casualty BHRG Property BHRG Casualty


Retroactive reinsurance policies losses adjustment expenses short contracts inception asbestos environmental tort claims. subject policy limits exposure limited. liabilities unpaid losses expenses three years December 31, 2023. Balance,415,855,623 Incurred losses adjustment expenses Current contracts Prior contracts Paid losses adjustment expenses Foreign currency effect Balance December 31,647,415,855 Incurred losses expenses Deferred charge amortization adjustments Incurred losses expenses Consolidated Statements Earnings


preceding table classification losses adjustment expenses inception dates exposure. analysis losses accident year irrelevant exposure incepts contract classification claims case development liabilities value.


Incurred losses expenses include amortization payments. 2023 increased liabilities $1. 1 billion $650 million. asbestos environmental casualty claims. Unamortized deferred charges contracts $9. 5 billion 2023 $9. 9 billion 2022.


retroactive reinsurance liabilities analyze patterns project losses probability scenarios. expect claim-tail long contracts decades. monitor review reports. revise timing amounts losses.


monitor law asbestos environmental tort claims. Changing laws toxins events claims theories liability contract interpretations liabilities. estimate net loss. liabilities asbestos environmental exposures $12. 2 billion 2023 $12. 1 billion 2022.


write periodic payment annuity life health insurance contracts long-duration GAAP. summary annuity insurance liabilities incurred-not-reported settlement millions. 31, Periodic payment annuities,212,640,153 Life health Other liabilities,252,234,213,753,295


Reconciliations annuity health insurance reinsurance three years December 2023 millions. changes policy benefits net premiums. premiums policy benefits expenses.annuities health future policy benefits Balance year,640,153,122,008,648#66,528 original discount rates,569,247 cash flow changes(829 experience Change benefits(297 Interest accrual Foreign currency effect Balance December 31 original discount rates,261,133 changes discount rate assumptions(469(909####4,892(13,206 Balance December 31,212,640,153,665,008,648 Expected future net premiums Balance,129,960,198 Balance original discount rates,370 cash flow changes experience premiums Interest accrual,444 Foreign currency effect(1,943 Balance December 31 original discount rates,277 discount rate assumptions,406,683 Balance December,129,960 Liability future policy benefits Balance December 31,212,640,153 Reinsurance recoverables,571,559,152 Balance December reinsurance recoverables,212,640,153,178,320


undiscounted discounted future premiums benefits annuities life health insurance December 31, 2023 2022 2021 summarized millions. benefits Periodic payment annuities,156,260 Life health####117,078,321,768,460,378,544,224


premiums long-duration contracts interest expense life annuity health benefits Consolidated Statements Earnings. premiums interest expense reinsurance ceded three years December 2023 millions. Expense annuities Life health,627,760


discount rates interest accretion rates contract durations December 2023 2022 2021 payment annuities life health insurance. discount rate. 7 accretion rate. duration years years years Life discount rate. accretion rate. duration years years years


Average Insurance Berkshire Hathaway. Dollar 2025-2047. Euro 2024-2041.,344 Japanese Yen 2024-2060. Hathaway Finance Corporation. Dollar 2027-2052. Pound 2039-2059. Euro 2030-2034.,332 subsidiary borrowings 2024-2051. subsidiary borrowings.


Berkshire borrowings senior unsecured debt. repaid $4. 3 billion issued ¥286. 4 billion $2. 05 billion interest rate 1. 15% maturity 2026 2058. Borrowings BHFC Berkshire housing loans equipment lease. guaranteed Berkshire. subsidiaries $2. 7 billion December 31, 2023. payment.


Berkshire BHFC. notes. 85 £1. 75 billion billion 2023 exchange rates. earnings. pre-tax gains $217 million 2023 $1. 7 billion 2022 $1. 3 billion 2021.


Average Railroad utilities Berkshire Hathaway Energy subsidiaries debt 2025-2053. debt 2024-2064. borrowings. Pilot Travel Centers subsidiaries 2024-2028. Burlington Northern Santa Fe 2024-2097.


BHE subsidiary debt agreements. assets pledged debt. leverage interest debt service. 2023 issued $4. 2 billion interest 5. 7% maturity 2033 2055 repaid $3. 7 billion. 2024 issued $5. 1 billion 5. 4% maturity 2029 2055 repaid $2. 8 billion.


secured. unsecured. issued $1. 6 billion. debentures 2054 repaid $1. 6 billion. 2023 BHE BNSF PTC debt covenants. Berkshire debt borrowings.


Unused paper $9. 4 billion December 2023 $6. billion BHE.


Debt principal repayments next five years millions. 2024 include short-term borrowings. Insurance#3,295 Railroad utilities energy,564,020,859,048#4,549


Liabilities taxes Consolidated Balance Sheets millions. 31, payable Deferred,009,368


tax differences deferred income tax assets liabilities millions. Deferred tax liabilities Investments unrealized appreciation,150 Deferred charges reinsurance Property,991 Goodwill intangible assets,010,749 Deferred tax assets Unpaid losses expenses Unearned premiums Accrued liabilities Regulatory liabilities Deferred revenue,282 deferred income tax liability


established deferred taxes earnings foreign subsidiaries indefinitely. Repatriation earnings impracticable. no. federal taxes future distributions foreign earnings law. distributions. jurisdictions local taxes.


Income tax expense Consolidated Statements Earnings three years 2023 millions. U. S. Federal,764,316,384. State####763 Foreign#23,019(8,502,912 Current#7,642,326 Deferred,377(13,317,586,912


Income tax expense reconciled hypothetical amounts. federal rate three years 2023. Earnings before taxes,166 income tax expense. federal rate,235,491 Dividends deduction tax-exempt interest State income taxes less. federal income tax effect. income tax credits differences,912 Effective income tax rate.


. income tax credits wind-energy affordable housing investments.


file income tax returns U. S. state foreign jurisdictions. settled liabilities. federal 2011. 2012 2013 review Office Appeals auditing 2014 2019. under state foreign jurisdictions. possible 2024. unresolved issues material Consolidated Financial Statements.


2023 2022 unrecognized tax benefits $480 $440 million. $420 million tax positions tax rate. increases 2024.


August 16, 2022 Inflation Reduction Act 2022 signed law. 15% corporate income tax expanded tax credits clean energy 1% excise tax stock repurchases. effective December 31, 2022. CAMT tax year. CAMT liability 2023. Internal Revenue Service. Department Treasury guidance. impact.


Organization Economic Co-operation Development issued Pillar Two rules global minimum tax 15% effective January 1, 2024. U. S. governments enacting legislation. worldwide operations. increase global tax costs. uncertainty final Pillar Two rules. global legislative impacts.


financial assets liabilities summarized fair values millions. carrying values cash equivalents. Treasury Bills receivables accounts accruals liabilities. Prices December 31, 2023 Investments fixed maturity securities. Treasury. government corporations agencies Foreign governments Corporate bonds Investments equity securities Kraft Heinz Occidental common stock Loans receivables Derivative contract assets liabilities


Insurance,184 Railroad utilities energy,579 December 31, 2022 Investments fixed maturity securities. Treasury. government Foreign governments,327 Corporate bonds,195 Investments securities,174 Kraft Heinz Occidental stock,491 Loans finance receivables,208,428 contract assets liabilities


Insurance,538,061 Railroad utilities,206,651


(1)Assets liabilities accounts accruals.


values financial instruments measured market income. hierarchy Levels 1 3.


Inputs unadjusted prices assets markets.


Level 2 Inputs include observable inputs quoted prices assets active interest rates yield curves volatilities prepayment speeds loss severities credit risks default rates derived market data. Pricing evaluations reflect discounted future cash flows yield curves credit ratings estimated durations yields instruments.


Level 3 Inputs unobservable inputs assets liabilities. Management assumptions little market activity corroborate inputs. inputs require projections assumptions market participants valuing.


Reconciliations assets liabilities fair value recurring unobservable inputs (Level 3) three years ending 2023 millions. (losses dispositions Level end Investments equity securities 2023,169 2022 2021 Equity index option contract liabilities 2021


December 31, 2023 assets value unobservable inputs 3). Value Valuation Techniques Inputs Investments equity Preferred stock,688 cash flow years transferability Common stock warrants pricing


equity securities preferred common stock warrants market values GAAP. private placements transfers hedging. applied discounted cash flow techniques assumptions duration effects subordination liquidation. common stock warrants warrant valuation model. assumptions duration volatility.


changes stock three years 2023. 1,000,000 shares preferred stock authorized none issued. A $5 shares B.Value (3,225,000,000 shares Balance December 31, 2020,359,852,316,381,350,043,471 Conversions Class A B stock,622,933,000 stock acquired Balance December 31, 2021,901,113,292,852,349,474,503 Conversions Class A B stock stock acquired Balance December 31, 2022,450,969,352,276,302,254,076 Conversions Class A B common stock,122,183,000 stock acquired,568 Balance December 31, 2023,328,775,152,352,590,844,561,508


Class A share vote per. B dividend distribution rights equal (1/1,500) A. B (1/10,000) A. A B vote single. A convertible 1,500 shares B. B not convertible A. 1,441,483 shares December 31, 2023 1,459,733 shares December 31, 2022.


two classes common stock earnings per share A B. B shares equivalent (1/1,500) Class A. A A shares one-hundredth (1/1,500) B shares. B shares 1,500 A.


Berkshire’s stock repurchase program permits Warren Buffett believes repurchase price below intrinsic value. program repurchases open market privately maximum. repurchases value cash equivalents. Treasury Bill holdings below $30 billion. obligate amount Class A B shares no expiration date.


table summarizes customer contract revenues segment source three years 2023 millions. Revenues PTC eleven months. insurance premiums interest dividend investment leasing revenues.2023 Retailing Hathaway Energy Corporate Manufactured products Industrial commercial#28,066,299 Building,119 Consumer,702 Grocery convenience distribution Food beverage distribution,040 Auto sales,747 retail distribution,289,289,423,001 Service,474,724,055 Electricity natural gas fuel,647,774,421 Total,633,743,724,702,461 Other revenues,136,091,283,879,79125,960,664,091 2022 Manufactured products Industrial commercial,566,765 Building,762 Consumer Grocery convenience store distribution Food beverage distribution,388 Auto sales,486 retail wholesale distribution,195,126 Service,199,103,742 Electricity natural gas,317 Total,634,090,055,742,250 Other revenues,016,154,803,249,650,209,209,802,803 2021products Industrial commercial,184 Building,604 Consumer Grocery convenience store distribution Food beverage distribution,332 Auto sales retail wholesale distribution,997,898,895 Service,123,120,063 Electricity natural gas,264 Total####64,811,328,146,120,847 Other revenues,766####4,601,182#68,577,450,747,177,182,185


summary transaction price unsatisfied performance obligations year December 31, 2023 timing millions. 12 12 Electricity natural gas fuel sales service contracts,163,181,344


Berkshire subsidiaries sponsor defined benefit pension plans. Benefits based years service fixed rates. net pension expense three years 2023. Service cost Interest cost Expected return plan assets(785(975,008 Net pension expense(32(156(138


projected benefit obligation benefits valuation assumptions future. obligations. benefit pension plans funded trusts. unfunded PBOs $1. billion $1. 1 billion December 2023 2022. costs plans recoverable.


funded Consolidated Balance Sheets 2023 2022 reconciliations PBOs pension years 2023 millions.Balance year,215#9,523,738#4,780,012,792 Service cost Interest cost Benefits paid(578(852(250(835 Settlements paid(448(164(678(842 Actuarial losses,305,735,040 Balance end year#3,269,498,767,215#9,523,738 Plan Balance year#3,376,216,592,158,462,620 Employer contributions Benefits paid(578(852(250(835 Settlements paid(448(164#(678(842 return plan assets,162,971,133#(235(145(380# Balance end year#3,471,379,376,216,592 Funded status net liability(202###(161#307#146#


2023 $1,823 liabilities $1,211 million. 2022 $1,510 $1,656 million.


accumulated benefit obligation value benefits valuation. $12. 3 billion December 2023 $12. 2 billion 2022. plans PBOs ABOs December 2023 2022. PBOs ABOs


assumptions PBOs pension expense. Discount rate PBOs. Expected long-term rate return plan assets. Rate compensation increase. Discount rate pension expense.


2024 $895 2025 $886 2026 $885 $896 $885 $4,434. $118 million 2024.


value measurements assets December 2023 2022 millions. value December 31, 2023 Cash cash equivalents Equity securities,487 Fixed maturity securities,138 Investment funds,379 December 31, 2022 Cash cash equivalents#602 Equity securities Fixed maturity securities,152 Investment funds,165,592


Note 21 fair value measurements. Plan assets invested long earnings obligations prudent risk. Allocations change market conditions opportunities. expected rates return reflect subjective-term. past returns. experience rates.


reconciliation pre-tax income defined benefit pension plans two years 2023 millions. Balance(738(485# pension expense#####123# Actuarial gains# end year(161##(738#


subsidiaries sponsor retirement. contributions limitations provisions. matching contributions. expense $1. 1 billion 2023. 8 billion 2022 $1. billion 2021.


summary net changes after-tax income Berkshire Hathaway shareholders three years 2023 millions. gains currency insurance pension Balance December 31, 2020(3,082,645,243 Adoption ASU 2018-12 Balance January 1, 2021(3,082,645(9,994 Other comprehensive income,010 Balance December 31, 2021,092,096(8,123 income,050 Balance December 31, 2022,142,052 income Balance December 31, 2023,393,353,763


businesses include insurance manufacturing service retailing. segments management. businesses grouped similar marketing selling distribution. acquired control PTC January 31, 2023 reportable February 1, 2023. earnings capital expenditures eleven months December 31, 2023. earnings equity non-controlled businesses.


tabular shows segments Consolidated Financial Statements. Intersegment transactions eliminated results. derivative gains/losses impairments amortization business acquisition accounting adjustments corporate income expense. included reconciliations consolidated.


segments. Business Insurance GEICO automobile insurance Berkshire Hathaway Primary Group property casualty insurance commercial Reinsurance excess-loss quota-share facultative reinsurance Railroad Berkshire Hathaway Energy electric gas utility power generation distribution real estate brokerage Pilot Travel Centers operator travel wholesale fuel services McLane Company distribution groceries non-food aircraft ownership aviation pilot training electronic components trailer furniture leasing


disaggregation data three years millions.before taxes Operating Businesses Insurance Underwriting GEICO,264#38,984,635 Berkshire Hathaway Primary Group,746 Berkshire Hathaway Reinsurance Group,010######21,846 Insurance underwriting Investment income Total insurance,022######82,310 BNSF,888 BHE,393,293 PTC Manufacturing,405######75,781 McLane,209 Service retailing,996######38,303,884,466 Reconciliation consolidated amount Investment derivative gains(67,899,542 Interest expense not allocated segments(426(420 Non businesses Corporate eliminations other(171,181######422#364,482#302,020,185,166(30,500#111,861 tax expense Operating Insurance BNSF,283######2(2,022(1,629,153 PTC Manufacturing,193 McLaneService retailing,141 Reconciliation consolidated Investment derivative gains(14,166 Interest expense not allocated(90(88(96 Non businesses Corporate eliminations(53#(14(111(240#5,003,352,172(8,502,912


tangible assets Operating Insurance BNSF,910,479,406 BHE,148,702 PTC Manufacturing,714,477,100 McLane Service retailing####1,775####1,487,177#19,409,464,276,658,465 year assets year-end Operating Insurance,563,548,181,860#459,917#483,417 BNSF,350,852,852,227,752,586 BHE,804,745,906,383,114 PTC,404 Manufacturing,463,578,231 McLane,049 Service retailing,241,282,241,600,291,119,875 consolidated Corporate,142,645,770 Goodwill,119,875,069,978,465,388


Property/casualty life/health insurance premiums summarized millions./Health Premiums Written,990,700,829#582,402,155(1,015#(33#(37#(40#,339#70,688,275,093#5,767,276 Premiums Earned Direct,437,879,139#582,263######5,698,548(1,293(1,054#(33#(39#(41#,331,770,157#5,072#5,806,303


Insurance premiums geographic region domicile insured summarized millions./Health United States#67,831,648,451#1,285,107,143 Asia Pacific,306,822 Western Europe,014,323,188,389,339,688,275,093#5,767,276


sales leasing revenues $164. billion 2023 $165. 2022 $151. 2021. 85% 2023 2022 2021. Europe Asia-Pacific Canada. utilities energy revenues $101. billion 2023 $52. 2022 $48. billion 2021. 94% 2023 96% 2022 2021. 2023 90% property remainder Kingdom Canada.


parties in legal actions liability insurance reinsurance contracts Berkshire subsidiaries. Plaintiffs seek punitive exemplary damages. believe litigation financial condition.


PacifiCorp Hathaway Energy Company operates electric utility Oregon Western states. September 2020 severe weather high winds low humidity warm temperatures wildfires damage injuries loss power outages Oregon Northern California. wildfires spread Siskiyou Jackson Douglas Marion Lincoln Klamath 500,000 acres. 2,000 structures destroyed damaged injured fatalities.


July McKinney Fire Oak Knoll Ranger Klamath National Forest Siskiyou. 11 185 destroyed 12 injuries four fatalities 60,000 acres. 2020 2022.


Investigations Wildfires complex conducted. Forest Service California Public Utilities Commission Oregon Forestry Justice PacifiCorp experts.


complaints 2020 Wildfires filed Oregon California class action verdicts June 2023 January 2024. plaintiffs seek economic noneconomic mental suffering distress personal injury loss life punitive attorneys’ fees. insurance carriers filed subrogation complaints. U. S. Oregon Departments Justice PacifiCorp actions. PacifiCorp cooperating. alternative dispute resolution.


lawsuits 2020 Wildfires Oregon California PacifiCorp Jeanyne James. PacifiCorp. Multnomah. plaintiffs economic non-economic mental distress personal injury loss punitive attorneys’ fees.


Oregon California approximate $8 billion excluding doubling trebling. California specify damages. Final determinations liability investigations. lawsuits filed California 2022 Wildfire. seek economic non-economic mental suffering distress personal injury loss life punitive attorneys’ fees specified.


June 2023 jury 17 James case PacifiCorp liable 2020 Wildfires. awarded $90 million damages $4 million economic property $68 million non-economic $18 million punitive.


September 2023 Multnomah Circuit Court ordered jury trials 10 members third commercial timber plaintiffs. first nine plaintiffs January 2024 remaining April 2024.


January 2024 Multnomah County Circuit Court judgment award June 2023 James case verdict. awards damages doubling economic damages insurance proceeds. lien PacifiCorp debt. bond stays payment appeals. ORS. interest per annum judgment paid appellate court.


January 2024 jury James awarded plaintiffs $62 million $6 million economic $56 million noneconomic. Multnomah doubled economic damages $12 million added $16 million punitive. multiplier 2023. PacifiCorp insurance.


PacifiCorp filed awards June 2023 verdict James case stay trials. February 14 2024 Oregon Court Appeals denied. appeal awards January 2024 verdict. February 13, 2024 17 plaintiffs cross-appeal January 2024 judgment. appeals years.


provision loss contingency recorded probable liability incurred loss estimated. PacifiCorp evaluates losses records loss best estimate.


Estimated losses Wildfires based information cause investigations settlement mediation discussions legal proceedings status James case. Wildfire losses include fire suppression costs property natural resource damages non-economic damages personal injury loss life subject change information.


PacifiCorp Wildfire losses $1. 9 billion 2023 $225 million 2022. $1. 7 billion $64 million 2022. paid $631 million settlements 2023 $53 million 2022. charges $2. 4 billion.


possible PacifiCorp incur Wildfire losses beyond accrued unable estimate losses due properties parties claimants variation lack details outcome legal actions.


HomeServices America. subsidiary BHE eleven antitrust cases federal district courts. plaintiffs claim subsidiaries inflate real estate commissions listing rules commission split property. complaints specify damages. two cases allege Texas deceptive trade practices provided damages $9 billion.


Burnett. HomeServices. jury trial October 16, 2023 verdict October 31, 2023 conspiracy Cooperative Compensation Rule commission rates home sellers. damages $1. 8 billion. Federal law authorizes trebling damages pre-judgment interest attorney fees. co-defendants. HomeServices findings damage award. appeals years.


HomeServices believes losses jury verdict Burnett damages $5. 4 billion excluding attorneys’ fees prejudgment interest costs. estimate loss liability early appeals process.


possible HomeServices incur losses ten antitrust cases. unable estimate losses due lack information plaintiff class potential damages liability defendants.


Berkshire subsidiaries involved legal actions assert claims impose fines penalties. believe liabilities actions financial condition results operations.


subsidiaries purchase Financial Statements. commitments utilities energy aircraft ownership leasing materials purchase. December 2023 future payments $10 billion 2024 $4 billion 2025 $3 billion 2026 $3 2027 $2 billion 2028.


obligated acquire noncontrolling interests less-owned subsidiaries future agreements cash assets. timing amount future payments future actions value interest acquired.


Disagreements Financial Disclosure


end period Annual Report on Form 10-K Corporation management effectiveness disclosure controls procedures Exchange Act Rule 13a-15. concluded disclosure controls procedures effective alerting information subsidiaries SEC filings. report Item 308(a) Regulation S-K incorporated Management’s Report on Internal Control Over Financial Reporting page K-66. attestation report Item 308(b) Report Independent Registered Public Accounting Firm page K-67. no change in internal control over financial reporting quarter ended December 31, 2023.


Berkshire adopted Rule 10b5-1 408 Regulation no directors adopted terminated Rule 10b5-1-Rule fourth quarter 2023.


Officers Part I 10 11 12 13 14 incorporated proxy statement Regulation 14A Annual Meeting Shareholders May 4 2024 election directors.


Consolidated Financial Statements Report Independent Accounting Firm Part II Item 8 Independent Accounting Firm ID. 34)-67 Balance December 2023 2022 2023 2022 2021-72 Comprehensive 2023 2022 2021-73 Shareholders’ December 2023 2022 2021-73 Cash 2023 2022 2021-74


. Financial Statement Schedule Accounting Firm Company Information Balance Sheets December 2023 2022 Earnings Income Cash Flows 2023 2022 2021-120 schedules omitted required Consolidated Financial Statements.


page K-122.


audited consolidated financial statements Berkshire Hathaway Inc. subsidiaries December 31, 2023 2022 three years December 31, 2023 internal control financial reporting issued report February 24, 2024 statements included Form 10-K. audits included financial statement schedule Index Item 15. responsibility management. express opinion. presents information.


31, Assets Cash,777. Treasury Bills subsidiaries Kraft Heinz,937 assets,448 Liabilities Equity Accounts payable accrued interest liabilities Income taxes deferred


Berkshire Hathaway equity,448


December 31, Income items consolidated subsidiaries Dividends distributions,717,462 Undistributed earnings,579,855,423 Investment gains Equity Kraft Heinz Company Other income(22,848,800 Cost expense General administrative Interest expense Foreign exchange gains non. Dollar debt Income tax expense Net earnings (loss Berkshire Hathaway shareholders,759 income#97,512,688,808


December 31, Cash flows activities Net earnings Berkshire Hathaway shareholders,223,759 Adjustments Investment losses losses consolidated subsidiaries,550 Non dividends subsidiaries Income taxes(1,833 Net cash flows operating activities,388 activities Investments consolidated subsidiaries Purchases. Treasury Bills,278,187,988 Sales maturities.Treasury Bills,296 Net cash flows(17,996,134 Cash flows financing Proceeds borrowings,174 Repayments borrowings,310,167 Acquisition treasury stock(9,171(7,854(27,061 Net cash flows financing,486(27,054 Increase cash equivalents(16,020,329 end#5,566,777 Income taxes,259 Interest


2022 2021 Accounting Standards Long-Duration Contracts. Consolidated Financial Statements.


December 2023 Berkshire. 7% Kraft Heinz equity. 5. October 19, 2022 acquired Alleghany Corporation $11. 5 billion. 2.


Parent Company repaid $4. 3 billion issued. billion $2. 05 billion interest. 15% maturities 2026 2058. 2023 non. borrowings €5. 6 billion billion. gains losses. earnings.


Parent Company debt maturities$1. 9 billion$2.$4.$2.$1. 4 billion. guarantees subsidiaries $20. 9 billion 2023 Berkshire Hathaway Finance Corporation. absolute unconditional irrevocable payment obligations. retroactive reinsurance contracts. payments contingent future events.


. Merger June 19, 1998 Berkshire General Re Corporation. Annex Statement. 333-61129. November 2 2009 Berkshire BNSF. Annex. 333-163343 S-4. August 8 Berkshire Merger. Precision Castparts Corporation Exhibit. Report Form 8-K File. Certificate Incorporation Exhibit Form 10-K March 2 2015. Exhibit Form 8-K May 10 2023. December 22, 2003, Hathaway Finance Berkshire Hathaway. Bank New York Mellon Trust. Exhibit. Form S-4. February 4 2004. SEC File. 333-112486. February 1 2010, Berkshire Hathaway. Bank New York Mellon Trust. Exhibit. Form. SEC File. 333-164611.January 26, 2016, Berkshire Hathaway. Finance Corporation Bank New York Mellon Trust Company. Exhibit 4. Registration Statement Form S-3. SEC File. 333-209122. December 1 1995 BNSF First National Bank Chicago. Exhibit 4 Form S-3 1999. October 4, 2002 MidAmerican Energy Holdings Bank New York. Exhibit 4. Berkshire Hathaway Energy Registration Statement. 333-101699. January 28, 2022 Berkshire Hathaway. Bank New York Mellon Trust Company. Exhibit 4. Registration Statement Form S-3. SEC File. instruments debt 10% assets December 31, 2023. debt instrument. Commitment Letter Berkshire Hathaway. Hawk Holding Corporation February 13, 2013. Exhibit 10.Form 8-K Berkshire Hathaway. February 14 2013. Ethics. Registrant Accounting Firm


Exhibit. 32. 1350 Certification 32. Safety Disclosures Recovery Erroneously Awarded Compensation financial information Berkshire Hathaway. Annual Report Form 10-K December 2023 Cover Page Balance Sheets Earnings Income Shareholders’ Equity Cash Flows Notes Financial Statements Schedule I. Page Interactive Data File iXBRL Exhibit 101


Section 13 Securities Exchange Act 1934 Registrant report signed undersigned authorized.


Securities Exchange Act 1934 report signed Registrant dates. E. BUFFETT. Board Executive Officer 24 2024 GREGORY E. ABEL. Operations 24 2024 HOWARD G. BUFFETT. SUSAN A. BUFFETT. STEPHEN B. BURKE. KENNETH I. CHENAULT. CHRISTOPHER C. DAVIS. SUSAN L. DECKER. CHARLOTTE GUYMAN AJIT JAIN Chairman—Insurance Operations 24 THOMAS S. MURPHY. RONALD L. OLSON. WALLACE R. WEITZ. MERYL B. WITMER. MARC D. HAMBURG.Vice Officer 24 2024 DANIEL. JAKSICH. Accounting


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aim build advanced safe responsible AI developed trained tested investment infrastructure. December 2023 launched Gemini model. multimodal information text code audio images video. teams leverage Gemini AI models product service experiences users advertisers partners customers developers.


approach AI bold responsible. developing benefits challenges guided AI Principles. published 2018 principles beneficial use safety avoidance harms above business considerations. tension bold responsible embrace.


AI enabler major platform shift. businesses public sector transformation. scalable grow AI. advanced computing infrastructure AI models tested products. Vertex AI platform train tune augment deploy applications AI models Search Conversations. Duet AI Cloud pre AI agents test software.


routine spell check mobile deposit Google Search Translate Maps use AI. AI focused helpful features organize information accessible useful.


integrating AI products generative AI. Duet AI Google Workspace helps write organize visualize accelerate meetings. Bard AI image coding app integration. Dream Screen YouTube AI-generated video backgrounds typing idea.


businesses rely Google Ads easier AI. Performance Max advertisers goals creative assets AI ad campaign budget. Product Studio benefits AI businesses-tailored imagery free. experimenting Search Shopping ads AI snapshot conversational mode Search Generative Experience.


Pixel phones incorporated AI experiences. latest built AI AI-assistive experiences Magic Editor Magic Eraser. designing Android Chrome AI experiences.


companies incremental changes. incrementalism leads irrelevance technology change. acquired YouTube Android Chrome matured into platforms digital video mobile devices safer browser. early investments AI incorporated core products central future developments. invest long term application AI products services frontier quantum computing. high-risk high-reward projects key long-term success.


priority protect privacy security products users customers even-term financial consequences. products secure responsible data practices easy-to-use settings. enhancing efforts enabling auto-delete data control ad experience advancing anti-phishing password security.


Google Services Cloud.


committed building products millions. product innovations services used brand recognized. Google products include ads Android Chrome Gmail Drive Maps Photos Play Search YouTube adoption.


products services since 25 years ago. Google Search started pages ten blue links driven technical advancements product innovations transformed multimodal experience. expanded from desktop mobile search smaller screens. content Universal Search multiple content news images videos results. new search modalities voice visual search curiosity. multisearch text images. models BERT Multitask Unified Models natural language queries quality results. advancement easier.


drive information discovery creation digital content web Google Play YouTube. digital content videos streaming TV games music


books apps. Working creators partners ways find digital content.


Fueling digital experiences platforms devices. invest in Android Chrome browser growing family devices. potential devices combining AI software hardware. potential reflected in devices Pixel 8 8 Pro Pixel Watch 2. Creating products services long-term.


built advertising technologies for advertisers agencies publishers digital marketing. solutions help grow ensure positive experiences right ads time building partnerships. AI foundational. Performance Max Product Studio AI find conversion opportunities.


Google Services delivering performance brand advertising Google Search YouTube Google Network partners properties. invest advertising improve measurability. advertising relevant ads engagement. measurable results. text-based ads. advertising awareness products services videos text images interactive ads devices. advertisers deliver videos ads specific audiences brand-building marketing campaigns.


allocated resources advertising protecting users. focus best experiences filtering invalid traffic removing billions bad ads monitoring sites apps videos ads bad content.


Google Services generates revenues beyond advertising subscriptions YouTube services Sunday Ticket Google One revenues Google Play sales apps in-app purchases Pixel family.


Google Cloud Platform Workspace generates revenues from consumption fees subscriptions for infrastructure platform collaboration tools cloud services. use five capabilities.-optimized Infrastructure open reliable scalable compute networking storage workloads. IT systems train AI models. •Cybersecurity detect protect respond threats AI attack paths resolution. •Databases Analytics data. Data Cloud unifies data lakes warehouses governance machine learning platform.


Alphabet. Tools Google Workspace Duet AI Gmail Docs Drive Calendar. remote work productivity. AI grammar efficiency security Smart Reply Compose malware phishing protection. Duet AI organize visualize meetings. Platform Duet AI Cloud Vertex AI platform tune augment deploy applications. Duet AI AI agents test software.


Alphabet using technology solve problems transportation health technology climate change. investment Other Bets includes businesses stages development R&D commercialization. goal successful businesses. Other Bets independent companies boards members outside investors. early-stage businesses uncertainty generating revenue making strides. Revenues healthcare internet services.


business rapid change new disruptive technologies. face competition search engines services •vertical search engines e-commerce providers travel jobs health advertising advertising billboards magazines newspapers radio television content application platform providers enterprise cloud services AI products services consumer hardware products proprietary platforms digital video services networks referrals workspace communication connectivity products assistant providers.


Competing depends on innovative products technologies. advertising depends attracting retaining •users click away relevance advertising usefulness security availability •advertisers generate sales leads customers deliver advertisements across distribution channels •content providers quality advertiser base help generate revenues terms agreements.


Risk Factors Annual Report Form.


believe business protect planet. Sustainability core Google build. leader sustainability climate change since 25 years ago.


sustainability work empowering partners carbon footprint operations supply chain.


2020 help reduce gigaton carbon emissions 2030. ambitious vision climate solutions beyond operations value chain.


2021 net-zero emissions operations 2030. reduce 50% Scope 1 2 3 emissions before 2030 invest carbon removal solutions. committed Science Based Targets validation emissions reduction target.


emissions transitioning clean energy. Since 2017 matched 100% electricity consumption with purchases renewable energy. differences availability variable supply need rely carbon-emitting local grids. goal 24/7 carbon-free energy by 2030.


net-zero emissions 24/7 CFE by 2030 ambitious goals. path. plans years infrastructure long lead times. business emissions rise reduction target.


benefit replenish 120% freshwater offices data centers 2030 restore improve quality water health ecosystems.


aim maximize reuse finite resources operations products supply chains. circularity principles waste materials healthy.


sustainability annual reports including Google’s Environmental Report. not incorporated Annual Report 10-K SEC. risks sustainability goals Item 1A Risk Factors Annual Report 10-K.


company curious talented passionate. embrace collaboration creativity.


people critical for success environment fulfilling careers happy healthy productive. offer industry-leading benefits programs diverse needs career growth financial health healthcare. competitive compensation programs attract retain top candidates invest recruiting talented. provide high quality training support courses learning resources coaching individual support.


Alphabet committed diversity equity inclusion growing workforce representative users. annual diversity reports diversity. google. not incorporated Annual Report Form 10-K SEC.


December 31, 2023 Alphabet 182,502 employees. work councils employee representation countries labor rights open culture listening. dialogue communicate channels.


contract with businesses specialized services-house cafe operations content moderation customer support security. contract temporary staffing agencies short-term leaves spikes business special projects. choose partners review compliance Supplier Code of Conduct. respectful working environment.


subject to. federal state local foreign laws regulations legal regulatory developments. face scrutiny. foreign governments compliance laws. laws regulations evolving applicability uncertain. AI climate change sustainability competition consumer protection content moderation data privacy security news publications human capital diversity new laws regulations enforcement actions investigations proposed implemented bodies.


compliance with laws regulations onerous increase cost products limit models change practices affect competitive position harm business reputation financial results.


government regulation Risk Trends Financial Part II 7 Legal Matters 10 Part II 8 Annual Report 10-K.


rely intellectual property laws confidentiality provisions technology brand. registered. international trademarks service marks domain names copyrights. filed patent applications. countries acquired assets. licensed rights. 1A Risk Factors Annual Report Form 10-K.


website. abc. investor relations./investor. Annual Reports 10-K Quarterly 10-Q Current Reports Form 8-K Proxy Statements amendments investor relations website free SEC. sec.


webcast investor website earnings calls events investment community. provides financial performance SEC filings investor events press earnings releases blogs. share Google news product updates Google Keyword blog. corporate governance information certificate incorporation bylaws governance guidelines board charters code conduct available. not incorporated Annual Report Form 10-K SEC references inactive textual.


operations results risks uncertainties harm business reputation financial affect price A C stock.


generate revenues from advertising. Reduced spending loss partners technologies harm business.


generated 75% revenues online advertising 2023. advertisers digital publishers content providers can terminate contracts. partners create value increased sales leads brand awareness effective monetization. Changes advertising policies data privacy practices third-party cookies affect advertising. technologies customized ads difficult block display providers impair third-party advertising. Failing provide superior value advertisements harm business reputation financial condition operating results.


expenditures correlate with economic conditions. Adverse conditions demand advertising fluctuations harm financial operating results.


face competition. innovate provide products useful partners harm business financial operating results.


business environment evolving competitive. face changing technologies shifting needs rival products. anticipate technology deliver innovative products timely. pressure products services. invest infrastructure R&D acquisitions enhance technology products services.


competitors industries. potential range large companies emerging start-ups. Some histories relationships. experience affect competitive position acquisitions strategic arrangements infrastructure R&D talent intellectual property competition claims for users advertisers customers content providers. discrepancies enforcement laws competitors interpret competitive advantages. competitors provide services faster foresee need.


expanding investment in AI. includes generative AI into products services. AI technology services competitive evolving require significant investment development costs meet changing needs new. AI technologies on third-party equipment infrastructure. other companies develop AI products similar superior cost-effective. obtain patents proprietary rights sell AI products services.


financial results suffer products services users advertisers publishers customers content providers. technologies competitors entrants offer experiences


similar better ours. technologies reduce usage products force compete expend resources develop. Competitors’ success products attracting users harm financial condition operating results.


investment businesses technologies risky divert harm financial results.


invested expect new businesses products services technologies industries beyond online advertising. investments building AI reflect efforts innovate users advertisers publishers customers content providers. investments return incur liabilities. Innovations behavior affect revenue trends. involve risks uncertainties diversion resources different monetization models alternative investment governance compensation structures incentives.


Google Services invest devices smartphones home wearables competitive market new products rapid advancements market saturation short life cycles evolving standards performance price feature sensitivity. no assurance devices.


Google Cloud resources enterprise services Platform Workspace advancing AI platforms. incurring costs infrastructure cybersecurity hire talent sales force. competitors developing deploying services. Pricing delivery models competitive evolving scale profitability objectives. business public sector regulatory compliance. government audits cost reviews failure deficiencies legal financial reputational risks. Evolving laws capital investments products services meet sovereign requirements.


Other Bets investing in health life sciences transportation. competition from large well-funded competitors offerings new technologies may successful profitability.


new products services AI raise ethical technological legal regulatory challenges affect brands demand. investment areas risky no assurance reputation financial results.


revenue growth decline pressure operating margin.


revenue growth rate decline factors devices geographic mix advertiser spending competition customer usage demand pricing product policy changes shifts to lower priced.


experience pressure operating margin increase lower-margin products services expansion business new fields devices Google Cloud consumer subscription investments Other Bets margins lower advertising. margins devices adverse effect consolidated margins pricing higher cost sales.


pressure margins regulations competition costs. costs expenses variable correlate revenue. cost base. historical revenue growth rate operating margin future performance. Trends Business Financial Effect Revenues Monetization Metrics Part II Item 7 Annual Report Form 10-K.


intellectual property rights valuable inability value products services brands.


patents trademarks secrets copyrights intellectual property rights important assets. events outside control rights products services technologies. intellectual property protection every country products Internet. efforts proprietary rights not sufficient. patent protection protect. adequate patent copyright protection innovations important. possibility protection insufficient issued patent invalid unenforceable.


maintain intellectual property trade secrets. secrecy sensitive information compromised lose competitive advantage. face risks trademarks. risk “Google” synonymous with “search. courts ruled protectable trademark other courts outside U. S. different. lose protection using “Google” products brand.


intellectual property rights harm business. protecting costly time consuming. increase unauthorized use harm financial results.


business depends brands failing users advertisers customers content providers partners.


strong brands success business. Maintaining Google Services Cloud Other Bets increases ability new categories innovative products users advertisers customers content providers partners. brands affected reputational issues third-party content data privacy security performance failures. respond misinformation objectionable content practices concerns users lose confidence.


failure maintain brands harm business reputation financial results. success technology leader high-quality trustworthy innovative products services.


manufacturing supply chain risks business results.


risks manufacturing supply chain affect products services.


rely on contract manufacturers devices servers networking equipment technical infrastructure supply components. rely other companies supply components distribution. business if necessary capabilities capacity reasonable terms fail meet


obligations financial adverse changes pricing terms arrangements.


experienced supply shortages price increases quality lead times operations raw material manufacturing labor shortages industry allocations logistics inflation tariffs sanctions export controls trade labor sustainability sourcing geopolitical tensions armed conflicts disasters climate change sea level drought power shutdowns power loss financial. components replacement vendors supply chain disruption. supply interruption delay data center upgrades product availability.


enter long-term contracts terms conditions. face costs consumed market demand technological change consumer preferences quality recalls warranty issues. hardware contracts volume-based pricing increased materials manufacturing costs financial liabilities costly harm financial operating results. competitors negotiate favorable terms advantages affect supply.


devices quality issues from design manufacturing operations. caused by components. quality expectations defective recall harm reputation financial condition operating results.


require suppliers partners comply laws policies Google Supplier Code Conduct data security environmental compliance intellectual property licensing control. Violations unethical practices supply canceled orders relationships reputation. failure license rights financial claims.


Interruption failure systems products services harm reputation financial operating results.


availability products services contracts depend information communications systems. vulnerable damage modifications terrorist attacks state-sponsored attacks natural disasters tensions conflicts export controls sanctions climate change sea level wildfires power shutdowns power loss utility outages telecommunications failures viruses software bugs ransomware supply-chain attacks denial of service phishing. data centers high risk earthquakes disasters. subject break-ins sabotage vandalism disruptions geopolitical tensions conflicts. systems not redundant disaster recovery planning account all eventualities. natural disaster unanticipated problems interruptions. products services complex errors vulnerabilities interruptions. incidents harm reputation financial condition operating results.


international operations risks business financial results.


international operations significant revenues net income plan grow. revenues 53% consolidated revenues 2023. operations expose risks •restrictions foreign ownership investments foreign exchange controls cash. •sanctions import export controls market access barriers political unrest geopolitical tensions changes armed conflict affect business continuity increase operating costs limit demand components products payment cycles increased credit risk higher payment fraud evolving foreign policy revenues regulatory costs uncertainty liabilities local laws-corruption laws. local laws payments government officials penalties employee relationships works councils labor practices challenges distance language local expertise cultural differences complexity.


conduct business. dollars report financial results. dollars faced foreign currency exchange rates. hedge international currency exposure fluctuations exchange rates. affect revenues earnings. Hedging programs risky risks financial results.


exposed fluctuations financial statements subjective valuation methodologies.


value debt equity investments affected by liquidity credit deterioration losses financial results foreign exchange rates interest rates rates regulations stock market factors.


measure non-marketable equity debt securities instruments stock compensation awards assets liabilities fair value subjective management judgment. gains losses-marketable equity securities recognized OI&E increases volatility. unrealized gains losses differ gains.


investments decline harm financial operating results.


access products services platforms devices technology user preferences. If manufacturers users adopt interfaces business harmed.


access products services desktop computers mobile phones smartphones laptops tablets video game consoles voice-activated speakers wearables automobiles television-streaming. products popular interfaces. manufacturer standards limited functionality. manufacturers not include products. search queries voice-activated search apps


harm business. hard predict challenges adapting developing. expect devote resources creating platforms devices. attract retain new manufacturers suppliers distributors developers users develop devices harm business financial condition results opportunities.


AI reputational harm liability.


AI risks harmful content inaccuracies discrimination intellectual property defamation data privacy cybersecurity. AI competitive harm regulatory action legal liability data protection privacy property brand harm.


AI ethical issues effects society. implement AI minimize effects devoted resources test products services issues deficiencies failures. Unintended consequences affect rights privacy employment social concerns claims lawsuits brand harm regulatory scrutiny business financial operating results.


Data privacy security concerns harm reputation liability deter products services. Computer viruses software bugs defects security breaches attacks improper disclosure data business reputation.


Concerns about practices collection use governance personal data harm business reputation financial condition results. policies practices change privacy.


products services involve storage transmission proprietary sensitive information. Software bugs theft misuse defects vulnerabilities security breaches expose risk loss improper use disclosure liabilities fines penalties reputational harm. products incorporate technical complex technologies errors bugs vulnerabilities. features AI susceptible security threats. errors software code after. failures security breaches privacy policies inadvertent disclosure data government legal exposure harm reputation brand business impair. incidents occurred may continue due products. no guarantee damage expect expend resources security protections bugs theft misuse vulnerabilities.


experience cyber attacks unauthorized access. evolve difficult detect. seen industry-wide software supply chain vulnerabilities affect systems. expect future. undesirable activity increase risk retaliatory attack. risk cyber attacks nation state-sponsored actors. target public sector customers. Geopolitical tensions armed conflicts Middle East Ukraine increase risks.


experience security issues employee error system errors vulnerabilities systems. determine material


no guarantee issues result legal financial reputational harm government inquiries enforcement actions litigation negative publicity. no guarantee related issues material later. techniques obtain unauthorized access disable degrade service systems change recognized after target unable anticipate detect attacks vulnerabilities implement preventative measures.


partners information data-security comply terms policies suffer security breach data improperly accessed disclosed. breach security market perception lose users customers trade secrets compromised legal financial risks claims class-action regulatory actions fines penalties. consequences harm business reputation financial condition operating results.


dedicated resources privacy security worldwide teams process natural disaster pandemic adequate assess severity fast remediate. suffer legal reputational financial exposure harm business financial operating results.


risk factor privacy data protection Related Regulations.


investments safety content review misuse data.


prevent cyber attacks investments in safety security review combat misuse services unauthorized access user data investigation platform applications. discovered discover unnecessary access misuse data undesirable activity third parties. may not all incidents data limitations lack visibility scale activity natural disaster pandemic learn via third parties. incidents include use data systems inconsistent with terms contracts policies false user accounts election interference improper ad purchases activities safety spamming scraping spreading disinformation. incidents material remedy no guarantee in legal financial reputational harm government inquiries enforcement actions litigation negative publicity. no guarantee related issues material.


unsuccessful enforce policies prevent incidents. developments affect trust engagement harm reputation brands business practices affect financial results. regulatory inquiries penalties damages divert time enhanced regulatory oversight.


content low-quality spam content farms violations affect quality services harm reputation deter users.


face violations content guidelines attempts manipulate hosting advertising systems generate revenues traffic user interest. invest high-quality results detect prevent low-quality content invalid traffic unable detect prevent abuses


high-quality content. Increased AI abuse actors.


websites violate guidelines inappropriately rank higher search. efforts affected quality content display false misleading undesirable content. English-language web spam reduced other languages limited spammers improve rankings. invest in proprietary technology detect prevent spam no guarantee may negative experiences if decisions. face challenges from low-quality irrelevant content websites content farms content rankings. launching algorithmic changes detect prevent abuse low-quality may not always successful. face challenges violations content guidelines election interference activities safety-being spreading misinformation.


fail detect problematic promote high hurt reputation reduce use financial results. litigation regulatory actions penalties damages divert time attention.


business depends on access Internet users. providers restrict block degrade charge products services expenses loss users.


products services depend on Internet require bandwidth. access provided by companies power telephone cable mobile communications government-owned service providers. Some providers measures degrade disrupt increase cost access restricting infrastructure charging fees preferential access. jurisdictions adopted regulations discrimination uncertainty U. S. protections. 2018. Federal Communications Commission repealed net neutrality rules could providers to restrict block degrade charge for access products. some products services subject to government restrictions blockages. could harm relationships reputation increase costs business.


subject to new changing laws regulations worldwide harm business likely broader business.