On October 19, 2022, Berkshire acquired all of the outstanding common stock of Alleghany Corporation (“Alleghany”) for $11.5 billion. Alleghany operates property and casualty reinsurance and insurance businesses and owns several non-financial businesses. Goodwill arising from Berkshire’s acquisition is not expected to be deductible for income tax purposes. A summary of the values of the Alleghany assets acquired and liabilities assumed as of October 19, 2022 follows (in millions). Assets acquired########Liabilities assumed## Cash, cash equivalents and U.S. Treasury Bills##$##3,762##Unpaid losses and loss adjustment expenses##$##15,080 Investments in fixed maturity and equity securities####15,982##Unearned premiums####3,536 Loans, receivables and other assets####9,287##Notes payable####2,169 Goodwill####3,900##Other liabilities####3,300 Other intangible assets####2,659###### Assets acquired##$##35,590##Liabilities assumed##$##24,085 Net assets##$##11,505######


BRK.A Notes to Consolidated Financial Statements (2)Significant business acquisitions

Certain unaudited pro forma revenue and consolidated earnings (loss) data for the year ended December 31, 2022 as if the Alleghany and PTC acquisitions were completed on the same terms at the beginning of 2022 follows (in millions, except per share amounts). ####2022## Revenues##$##383,115## Net earnings (loss) attributable to Berkshire Hathaway shareholders####(23,947##) Net earnings (loss) per equivalent Class A common share####(16,303##)


BRK.A Notes to Consolidated Financial Statements (2)Significant business acquisitions (3)Investments in fixed maturity securities

On September 1, 2023, a Berkshire Hathaway Energy (“BHE”) subsidiary acquired an additional 50% limited partner interest in Cove Point LNG, LP (“Cove Point”) for $3.3 billion, which increased our economic interest from 25% to 75%. Prior to the transaction, we also owned 100% of the general partner interests. We previously treated Cove Point as a consolidated subsidiary for financial reporting purposes because we concluded we have the power to direct the activities that most significantly affect Cove Point, as well as the obligation to absorb losses and benefits that could be significant to Cove Point. Accordingly, the interest acquired in the third quarter was an acquisition of a noncontrolling interest. We recorded a charge based on Berkshire’s ownership percentage of BHE of $667 million to capital in excess of par for the excess of the consideration paid over the carrying value of the noncontrolling interest acquired and deferred income tax assets arising from the transaction.


Investments in fixed maturity securities are summarized by type below (in millions). ####Amortized Cost####Unrealized Gains####Unrealized Losses######Fair Value December 31, 2023################## U.S. Treasury, U.S. government corporations and agencies##$##10,308##$##14##$##(53##)##$##10,269 Foreign governments####11,788####58####(41##)####11,805 Corporate bonds####1,212####241####(4##)####1,449 Other####217####21####(3##)####235 ##$##23,525##$##334##$##(101##)##$##23,758 December 31, 2022################## U.S. Treasury, U.S. government corporations and agencies##$##10,039##$##12##$##(249##)##$##9,802 Foreign governments####10,454####50####(177##)####10,327 Corporate bonds####1,945####256####(6##)####2,195 Other####2,735####77####(8##)####2,804 ##$##25,173##$##395##$##(440##)##$##25,128


Approximately 95% of our foreign government holdings were rated AA or higher by at least one of the major rating agencies as of December 31, 2023. The amortized cost and estimated fair value of fixed maturity securities at December 31, 2023 are summarized below by contractual maturity dates (in millions). Actual maturities may differ from contractual maturities due to prepayment rights held by issuers. ####Due in one year or less####Due after one year through five years####Due after five years through ten years####Due after ten years####Mortgage-backed securities####Total Amortized cost##$##18,888##$##3,744##$##611##$##128##$##154##$##23,525 Fair value####18,875####3,754####823####138####168####23,758


BRK.A Notes to Consolidated Financial Statements (4)Investments in equity securities

Investments in equity securities are summarized as follows (in millions). ####Cost Basis####Net Unrealized Gains####Fair Value December 31, 2023 *############ Banks, insurance and finance##$##27,136##$##51,176##$##78,312 Consumer products####34,248####166,895####201,143 Commercial, industrial and other####48,032####26,355####74,387 ##$##109,416##$##244,426##$##353,842


* Approximately 79% of the aggregate fair value was concentrated in five companies (American Express Company – $28.4 billion; Apple Inc. – $174.3 billion; Bank of America Corporation – $34.8 billion; The Coca-Cola Company – $23.6 billion and Chevron Corporation – $18.8 billion). ####Cost Basis####Net Unrealized Gains####Fair Value December 31, 2022 *############ Banks, insurance and finance##$##25,893##$##43,663##$##69,556 Consumer products####40,508####112,384####152,892 Commercial, industrial and other####65,209####21,136####86,345 ##$##131,610##$##177,183##$##308,793


* Approximately 75% of the aggregate fair value was concentrated in five companies (American Express Company – $22.4 billion; Apple Inc. – $119.0 billion; Bank of America Corporation – $34.2 billion; The Coca-Cola Company – $25.4 billion and Chevron Corporation – $30.0 billion).


In 2019, we invested $10 billion in non-voting Cumulative Perpetual Preferred Stock of Occidental Petroleum Corporation (“Occidental”) and in Occidental common stock warrants. During 2022, we began acquiring common stock of Occidental. Our aggregate voting interest in Occidental common stock exceeded 20% on August 4, 2022, and we adopted the equity method as of that date. See Note 5. Our investments in the Occidental preferred stock and Occidental common stock warrants are recorded at fair value and included as equity securities in our Consolidated Balance Sheets, as such investments are not in-substance common stock under GAAP and are not eligible for the equity method.


The Occidental preferred stock accrues dividends at 8% per annum and is redeemable at the option of Occidental commencing in 2029 at a redemption price equal to 105% of the liquidation value. As of December 31, 2023, our investment in Occidental preferred stock had an aggregate liquidation value of approximately $8.5 billion. During 2023, Occidental issued mandatory redemption notifications for approximately $1.5 billion of the aggregate liquidation value at a price of 110% of the liquidation value, plus accrued and unpaid dividends. The mandatory redemptions were due to excess distributions by Occidental to its common stockholders, as defined under the terms of the Occidental preferred stock certificate of designations.


The Occidental common stock warrants allow us to purchase up to 83.86 million shares of Occidental common stock at an exercise price of $59.62 per share. The warrants are exercisable in whole or in part until one year after the date the preferred stock is fully redeemed.


As of December 31, 2023, we owned 151.6 million shares of American Express Company (“American Express”) common stock representing 21% of the outstanding common stock of American Express. Since 1995, we have been party to an agreement with American Express whereby we agreed to vote a significant portion of our shares in accordance with the recommendations of the American Express Board of Directors. We have also agreed to passivity commitments as requested by the Board of Governors of the Federal Reserve System, which collectively, in our judgment, restrict our ability to exercise significant influence over the operating and financial policies of American Express. Accordingly, we do not use the equity method with respect to our investment in American Express common stock and we continue to record our investment at fair value.


BRK.A Notes to Consolidated Financial Statements (5)Equity method investments

Berkshire and its subsidiaries hold investments in certain businesses that are accounted for pursuant to the equity method. Currently, the most significant of these are our investments in the common stock of The Kraft Heinz Company (“Kraft Heinz”) and Occidental. As of December 31, 2023, we owned 26.7% of the Kraft Heinz outstanding common stock and 27.8% of the outstanding Occidental common stock, which excluded the potential effect of the exercise of the Occidental common stock warrants.


Kraft Heinz manufactures and markets food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee and other grocery products. Occidental is an international energy company, whose activities include oil and natural gas exploration, development and production, and chemicals manufacturing businesses. Occidental’s financial information is not available in time for concurrent reporting in our Consolidated Financial Statements. Therefore, we report the equity method effects for Occidental on a one-quarter lag.


The common stock of Kraft Heinz and Occidental are publicly traded. The fair values and carrying values of these two investments in addition to the carrying values of our other significant equity method investments are summarized as follows (in millions). ######Carrying Value##########Fair Value#### ######December 31,##########December 31,#### ####2023######2022####2023######2022 Kraft Heinz##$##13,230####$##12,937##$##12,035####$##13,249 Occidental####15,410######11,484####14,552######12,242 Other####426######3,629########## ##$##29,066####$##28,050##########


As of December 31, 2023, the excess of our carrying values over the fair values of our investments in Kraft Heinz and Occidental were 9% and 6%, respectively, of the carrying values. We evaluated our investments in Kraft Heinz and Occidental for other-than-temporary impairment as of December 31, 2023, and based on the prevailing facts and circumstances, concluded the recognition of impairment charges in earnings were not required.


Our other significant equity method investments included our 50% interest in Berkadia Commercial Mortgage LLC (“Berkadia”), in which Jefferies Financial Group (“Jefferies”) owns the other 50% interest, and PTC through January 31, 2023. Berkadia engages in mortgage banking, investment sales and servicing of commercial/multi-family real estate loans. Berkadia’s commercial paper borrowing capacity (currently limited to $1.5 billion) is supported by a surety policy issued by a Berkshire insurance subsidiary. Jefferies is obligated to indemnify us for one-half of any losses incurred under the policy.


Beginning February 1, 2023, we ceased accounting for PTC under the equity method and began consolidating PTC for financial reporting purposes. Our investment in PTC under the equity method was $3.2 billion at December 31, 2022. Equity method earnings attributable to PTC were $105 million in 2023, $812 million in 2022 and $474 million in 2021.


As of December 31, 2023, the carrying values of our investments in Kraft Heinz and Berkadia approximated our share of shareowners’ equity of each of these entities. The carrying value of our investment in Occidental common stock exceeded our share of its shareholders’ equity as of September 30, 2023 by approximately $9.6 billion. Based upon the limited information available to us, we concluded the excess represents goodwill.


Our earnings and distributions received from equity method investments are summarized in the following table (in millions). The earnings we recorded in 2023 for Occidental included our share of its earnings for the fourth quarter of 2022 and first nine months of 2023. The earnings we recorded in 2022 for Occidental included our share of its earnings from August 4, 2022 through September 30, 2022. ########Equity in Earnings############Distributions Received#### ########Year ended December 31,############Year ended December 31,#### ####2023####2022####2021####2023####2022####2021 Kraft Heinz##$##758##$##628##$##269##$##521##$##521##$##521 Occidental####1,077####323####—####142####24####— Other####138####912####617####58####284####1,057 ##$##1,973##$##1,863##$##886##$##721##$##829##$##1,578


Summarized consolidated financial information of Kraft Heinz follows (in millions). ####December 30, 2023####December 31, 2022 Assets##$##90,339##$##90,513 Liabilities####40,617####41,643 ########Year ended#### ####December 30, 2023####December 31, 2022####December 25, 2021 Sales##$##26,640##$##26,485##$##26,042 Net earnings attributable to Kraft Heinz common shareholders####2,855####2,363####1,012


BRK.A Notes to Consolidated Financial Statements (5)Equity method investments (6)Investment and derivative contract gains (losses)

Summarized consolidated financial information of Occidental follows (in millions). ####September 30, 2023####December 31, 2022 Assets##$##71,827##$##72,609 Liabilities####42,515####42,524 ####Twelve months ending September 30, 2023 Total revenues and other income##$##29,715 Net earnings attributable to Occidental common shareholders####4,471


Investment and derivative contract gains (losses) for each of the three years ending December 31, 2023 are summarized as follows (in millions). ####2023######2022######2021## Investment gains (losses):################## Equity securities:################## Change in unrealized investment gains (losses) during the year on securities held at the end of the year##$##69,144####$##(63,120##)##$##76,375## Investment gains (losses) during the year on securities sold####2,698######(3,927##)####997## ####71,842######(67,047##)####77,372## Fixed maturity securities:################## Gross realized gains####139######134######85## Gross realized losses####(86##)####(684##)####(29##) Other####2,960######(26##)####148## Investment gains (losses)####74,855######(67,623##)####77,576## Derivative contract gains (losses)####—######(276##)####966## ##$##74,855####$##(67,899##)##$##78,542##


Equity securities gains and losses include unrealized gains and losses from changes in fair values during the year on equity securities we still own, as well as gains and losses on securities we sold during the year. As shown in the Consolidated Statements of Cash Flows, our proceeds from sales of equity securities were approximately $40.6 billion in 2023, $33.7 billion in 2022 and $15.8 billion in 2021. In the preceding table, investment gains and losses on equity securities sold during the year represent the difference between the sales proceeds and the fair value of the equity securities sold at the beginning of the applicable year or, if later, the purchase date. Our taxable gains and losses on equity securities sold are generally the difference between the proceeds from sales and cost at the acquisition date. Equity securities sold produced taxable gains of $5.0 billion in 2023, $769 million in 2022 and $3.6 billion in 2021. Other investment gains included approximately $3.0 billion in 2023 from the remeasurement of our pre-existing 38.6% interest in PTC through the application of acquisition accounting under GAAP.


BRK.A Notes to Consolidated Financial Statements (7)Loans and finance receivables

Loans and finance receivables are summarized as follows (in millions). ########December 31,###### ####2023########2022## Loans and finance receivables before allowances and discounts##$##26,289######$##24,664## Allowances for credit losses####(950##)######(856##) Unamortized acquisition discounts and points####(658##)######(600##) ##$##24,681######$##23,208##


Loans and finance receivables are principally manufactured home loans, and to a lesser extent, commercial loans and site-built home loans. Reconciliations of the allowance for credit losses on loans and finance receivables for each of the three years ending December 31, 2023 follow (in millions). ####2023######2022######2021## Balance at the beginning of the year##$##856####$##765####$##712## Provision for credit losses####169######124######88## Charge-offs, net of recoveries####(75##)####(33##)####(35##) Balance at December 31##$##950####$##856####$##765##


At December 31, 2023, substantially all manufactured and site-built home loan balances were evaluated collectively for impairment, and we considered approximately 96% of the loan balances to be current as to payment status. A summary of performing and non-performing home loans before discounts and allowances by year of loan origination as of December 31, 2023 follows (in millions). ##############Origination Year################ ####2023####2022####2021######2020####2019####Prior####Total Performing##$##5,716##$##4,368##$##3,321####$##2,575##$##1,820##$##7,432##$##25,232 Non-performing####8####11####17######12####11####53####112 ##$##5,724##$##4,379##$##3,338####$##2,587##$##1,831##$##7,485##$##25,344


BRK.A Notes to Consolidated Financial Statements (7)Loans and finance receivables (8)Other receivables

We are also a lender under commercial loan agreements, which had an aggregate carrying value of approximately $850 million at December 31, 2023 and $1.9 billion at December 31, 2022. The decline in loan balances during 2023 was primarily attributable to prepayments and dispositions. These commercial loans are generally secured by real estate properties or by other assets and are individually evaluated for expected credit losses.


Other receivables are comprised of the following (in millions). ########December 31,###### ####2023########2022## Insurance and other:############## Insurance premiums receivable##$##19,052######$##18,395## Reinsurance recoverables####7,060########7,106## Trade receivables####14,449########14,510## Other####4,269########4,154## Allowances for credit losses####(656##)######(675##) ##$##44,174######$##43,490## Railroad, utilities and energy:############## Trade receivables##$##6,034######$##4,182## Other####1,228########754## Allowances for credit losses####(176##)######(141##) ##$##7,086######$##4,795##


Receivables of the railroad, utilities and energy businesses at December 31, 2023 included approximately $2.1 billion related to PTC. Aggregate provisions for credit losses with respect to receivables in the preceding table were $513 million in 2023, $409 million in 2022 and $441 million in 2021. Charge-offs, net of recoveries, were $474 million in 2023, $432 million in 2022 and $420 million in 2021.


BRK.A Notes to Consolidated Financial Statements (9)Inventories

Inventories of our insurance and other businesses are comprised of the following (in millions). ######December 31,#### ####2023######2022 Raw materials##$##6,026####$##6,381 Work in process and other####3,345######3,464 Finished manufactured goods####4,969######5,739 Goods acquired for resale####9,819######9,782 ##$##24,159####$##25,366


BRK.A Notes to Consolidated Financial Statements (9)Inventories (10)Property, plant and equipment

Inventories, materials and supplies of our railroad, utilities and energy businesses are included in other assets and were approximately $4.2 billion at December 31, 2023, which included approximately $1.7 billion attributable to PTC.


A summary of property, plant and equipment of our insurance and other businesses follows (in millions). ########December 31,###### ####2023########2022## Land, buildings and improvements##$##15,058######$##14,761## Machinery and equipment####28,010########26,690## Furniture, fixtures and other####5,566########4,847## ####48,634########46,298## Accumulated depreciation####(26,604##)######(25,185##) ##$##22,030######$##21,113##


A summary of property, plant and equipment of railroad and utilities and energy businesses follows (in millions). The utility generation, transmission and distribution systems and interstate natural gas pipeline assets are owned by regulated public utility and natural gas pipeline subsidiaries. Assets of PTC are included within the utilities and energy section below. ########December 31,###### ####2023########2022## Railroad:############## Land, track structure and other roadway##$##71,692######$##67,350## Locomotives, freight cars and other equipment####16,256########16,031## Construction in progress####1,715########1,743## ####89,663########85,124## Accumulated depreciation####(19,464##)######(17,899##) ####70,199########67,225## Utilities and energy:############## Utility generation, transmission and distribution systems####96,195########92,759## Interstate natural gas pipeline assets####19,226########18,328## Independent power plants and other####14,781########14,650## Land, buildings and improvements####4,540########—## Machinery, equipment and other####3,855########—## Construction in progress####9,551########5,357## ####148,148########131,094## Accumulated depreciation####(40,731##)######(38,051##) ####107,417########93,043## ##$##177,616######$##160,268##


Depreciation expense for each of the three years ending December 31, 2023 is summarized below (in millions). ####2023####2022####2021 Insurance and other##$##2,388##$##2,276##$##2,318 Railroad, utilities and energy####7,004####6,181####5,990 ##$##9,392##$##8,457##$##8,308


BRK.A Notes to Consolidated Financial Statements (11)Equipment held for lease

Equipment held for lease includes railcars, aircraft, and other equipment, including over-the-road trailers, intermodal tank containers, cranes, storage units and furniture. Equipment held for lease is summarized below (in millions). ########December 31,###### ####2023########2022## Railcars##$##10,031######$##9,612## Aircraft####12,537########10,667## Other####5,576########5,212## ####28,144########25,491## Accumulated depreciation####(11,197##)######(9,907##) ##$##16,947######$##15,584##


Depreciation expense for equipment held for lease was $1,266 million in 2023, $1,209 million in 2022 and $1,158 million in 2021. Fixed and variable operating lease revenues for each of the three years ending December 31, 2023 are summarized below (in millions). ####2023####2022####2021 Fixed lease revenue##$##5,902##$##5,184##$##4,482 Variable lease revenue####2,514####2,330####1,506 ##$##8,416##$##7,514##$##5,988


BRK.A Notes to Consolidated Financial Statements (11)Equipment held for lease (12)Leases

A summary of future operating lease receipts as of December 31, 2023 follows (in millions). ##2024####2025####2026####2027####2028####Thereafter####Total $##3,942##$##3,077##$##2,346##$##1,569##$##771##$##283##$##11,988


We are party to contracts where we lease property from others under contracts classified as operating leases. We primarily lease buildings, offices and operating facilities. Operating lease right-of-use assets are included in other assets and operating lease liabilities are included in accounts payable, accruals and other liabilities. Information related to our operating leases follows (dollars in millions). ####Right-of-use assets####Lease liabilities##Weighted average remaining term in years##Weighted average discount rate used to measure liabilities## December 31, 2023##$##5,277##$##5,299##7.0##4.2##% December 31, 2022####4,975####4,939##7.0##3.7##%


A summary of our remaining future operating lease payments reconciled to lease liabilities as of December 31, 2023 and December 31, 2022 follows (in millions). ####Year 1####Year 2####Year 3####Year 4####Year 5####Thereafter####Total lease payments####Amount representing interest######Lease liabilities December 31:###################################### 2023##$##1,422##$##1,172##$##815##$##666##$##463##$##1,680##$##6,218##$##(919##)##$##5,299 2022####1,283####1,073####822####560####449####1,464####5,651####(712##)####4,939


Components of operating lease expense for each of the three years ending December 31, 2023, are summarized as follows (in millions). ####2023####2022####2021 Operating lease expense##$##1,535##$##1,361##$##1,426 Short-term lease expense####219####233####154 Variable lease expense####216####217####223 ##$##1,970##$##1,811##$##1,803


BRK.A Notes to Consolidated Financial Statements (13)Goodwill and other intangible assets

Reconciliations of the changes in the carrying value of goodwill during 2023 and 2022 follow (in millions). ########December 31,###### ####2023########2022## Balance at the beginning of the year##$##78,119######$##73,875## Business acquisitions####7,347########4,657## Other, including acquisition period remeasurements and foreign currency translation####(840##)######(413##) Balance at the end of the year*##$##84,626######$##78,119##


* Net of accumulated goodwill impairments of $11.1 billion as of December 31, 2023 and $11.0 billion as of December 31, 2022.


Other intangible assets are summarized below (in millions). ########December 31, 2023############December 31, 2022#### ####Gross carrying amount####Accumulated amortization####Net carrying value####Gross carrying amount####Accumulated amortization####Net carrying value Insurance and other:######################## Customer relationships##$##28,305##$##7,901##$##20,404##$##27,765##$##7,174##$##20,591 Trademarks and trade names####5,619####846####4,773####5,603####822####4,781 Patents and technology####5,238####4,109####1,129####4,943####3,748####1,195 Other####4,826####1,805####3,021####4,150####1,530####2,620 ##$##43,988##$##14,661##$##29,327##$##42,461##$##13,274##$##29,187 Railroad, utilities and energy:######################## Customer relationships and contracts##$##4,092##$##791##$##3,301##$##1,507##$##541##$##966 Trademarks and trade names####3,592####98####3,494####217####39####178 Other####1,174####156####1,018####190####42####148 ##$##8,858##$##1,045##$##7,813##$##1,914##$##622##$##1,292


Other intangible assets of the railroad, utilities and energy businesses are included in other assets. The net carrying value at December 31, 2023 included $6.6 billion related to PTC.


BRK.A Notes to Consolidated Financial Statements (13)Goodwill and other intangible assets (14)Supplemental cash flow information

Intangible asset amortization expense was $1,828 million in 2023, $1,233 million in 2022 and $1,252 million in 2021. Estimated amortization expense over the next five years follows (in millions): 2024 – $2,059; 2025 – $1,988; 2026 – $1,898; 2027 – $1,754 and 2028 – $1,684. Intangible assets with indefinite lives were $18.9 billion as of December 31, 2023 and $18.3 billion as of December 31, 2022 and primarily related to certain customer relationships and trademarks and trade names.


A summary of supplemental cash flow information follows (in millions). ####2023####2022####2021 Cash paid during the year for:############ Income taxes##$##7,765##$##4,236##$##5,412 Interest:############ Insurance and other####1,272####1,150####1,227 Railroad, utilities and energy####3,725####3,195####3,162 Non-cash investing and financing activities:############ Liabilities assumed in connection with business acquisitions####10,938####24,186####102 Operating lease liabilities arising from obtaining right-of-use assets####1,645####1,118####687


BRK.A Notes to Consolidated Financial Statements (15)Dividend restrictions – Insurance subsidiaries

Payments of dividends by our insurance subsidiaries are restricted by insurance statutes and regulations. Without prior regulatory approval, our principal insurance subsidiaries may declare up to approximately $31 billion as ordinary dividends during 2024. Investments in fixed maturity and equity securities and short-term investments on deposit with U.S. state insurance authorities in accordance with state insurance regulations were approximately $5.2 billion at December 31, 2023 and $4.9 billion at December 31, 2022.


BRK.A Notes to Consolidated Financial Statements (15)Dividend restrictions – Insurance subsidiaries (16)Unpaid losses and loss adjustment expenses

Combined shareholders’ equity of U.S.-based insurance subsidiaries determined pursuant to statutory accounting rules (Surplus as Regards Policyholders) was approximately $303 billion at December 31, 2023 and $272 billion at December 31, 2022. Statutory surplus differs from the corresponding amount based on GAAP due to differences in accounting for certain assets and liabilities. For instance, deferred charges reinsurance assumed, the measurement of life, annuity and health insurance benefits liabilities, deferred policy acquisition costs, unrealized gains on certain investments and related deferred income taxes are recognized for GAAP but not for statutory reporting purposes. In addition, the carrying values of certain assets, such as goodwill and non-insurance entities owned by our insurance subsidiaries, are not fully recognized for statutory reporting purposes.


Reconciliations of the changes in unpaid losses and loss adjustment expenses (“claim liabilities”), excluding liabilities under retroactive reinsurance contracts (see Note 17), for each of the three years ended December 31, 2023 follows (in millions). Net liabilities of acquired businesses in 2022 were from the Alleghany acquisition. See Note 2. ####2023######2022######2021## Balance at the beginning of the year:################## Gross liabilities##$##107,472####$##86,664####$##79,854## Reinsurance recoverable on unpaid losses####(5,025##)####(2,960##)####(2,912##) Net liabilities####102,447######83,704######76,942## Incurred losses and loss adjustment expenses:################## Current accident year####59,244######59,463######52,099## Prior accident years####(3,541##)####(2,672##)####(3,116##) Total####55,703######56,791######48,983## Paid losses and loss adjustment expenses:################## Current accident year####(25,184##)####(27,236##)####(22,897##) Prior accident years####(27,065##)####(23,083##)####(18,904##) Total####(52,249##)####(50,319##)####(41,801##) Foreign currency effect####288######(508##)####(420##) Net liabilities of acquired businesses####—######12,779######—## Balance at December 31:################## Net liabilities####106,189######102,447######83,704## Reinsurance recoverable on unpaid losses####4,893######5,025######2,960## Gross liabilities##$##111,082####$##107,472####$##86,664##


Our claim liabilities under property and casualty insurance and reinsurance contracts are based upon estimates of the ultimate claim costs associated with claim occurrences as of the balance sheet date and include estimates for incurred-but-not-reported (“IBNR”) claims. Incurred losses and loss adjustment expenses shown in the preceding table related to insured events occurring in the current year (“current accident year”) and events occurring in all prior years (“prior accident years”). Incurred and paid losses and loss adjustment expenses are net of reinsurance recoveries. Current accident year incurred losses from significant catastrophe events (losses in excess of $150 million per event) were approximately $925 million in 2023, $3.1 billion in 2022 ($2.5 billion from Hurricane Ian) and $2.9 billion in 2021 ($1.5 billion from Hurricane Ida). Current accident year incurred losses for private passenger auto insurance declined in 2023 compared to 2022, reflecting lower claims frequencies and higher average claims severities and increased significantly in 2022 versus 2021, attributable to increases in claims frequencies and severities.


BRK.A Notes to Consolidated Financial Statements (16)Unpaid losses and loss adjustment expenses

We recorded net reductions of estimated ultimate liabilities for prior accident years of $3.5 billion in 2023, $2.7 billion in 2022 and $3.1 billion in 2021, which produced corresponding reductions in incurred losses and loss adjustment expenses in those periods. These reductions, as percentages of the net liabilities at the beginning of each year, were 3.5% in 2023, 3.2% in 2022 and 4.0% in 2021.


We reduced estimated ultimate liabilities for prior accident years of primary insurance businesses by $2.1 billion in 2023, $1.1 billion in 2022 and $2.4 billion in 2021. The reductions in each year derived from private passenger auto, medical professional liability, and property claims. Estimated ultimate liabilities for prior accident years of property and casualty reinsurance businesses were reduced $1.4 billion in 2023, $1.6 billion in 2022 and $718 million in 2021. The reductions in each year reflected reduced estimates from both property and casualty claims.


Estimated net claim liabilities for environmental and asbestos exposures, excluding liabilities under retroactive reinsurance contracts, were approximately $2.0 billion at December 31, 2023 and $2.1 billion at December 31, 2022. These liabilities are subject to change due to changes in the legal and regulatory environment, among other factors. We are unable to reliably estimate additional losses or a range of losses that are reasonably possible to arise from these factors.


Disaggregated information concerning our claim liabilities is provided below and in the pages that follow. In this discussion, “claim-tail” refers to the period between the claim occurrence date and claim settlement or payment date. A reconciliation of the disaggregated net unpaid losses and allocated loss adjustment expenses (the latter referred to as “ALAE”) to our consolidated claim liabilities as of December 31, 2023 follows (in millions). ######GEICO##########BH Primary##########BHRG######## ####Physical Damage######Auto Liability####Medical Professional Liability######Workers’ Compensation/ Other Casualty####Property######Casualty####Total Unpaid losses and ALAE, net##$##737####$##20,477##$##9,166####$##21,230##$##16,499####$##32,393##$##100,502 Reinsurance recoverable####4######900####26######1,547####689######1,481####4,647 Unallocated loss adjustment expenses##################################2,467 Other losses and loss adjustment expenses##################################3,466 Unpaid losses and loss adjustment expenses################################$##111,082


BRK.A GEICO

GEICO’s claim liabilities predominantly relate to various types of private passenger auto liability and physical damage claims. For such claims, we establish and evaluate unpaid claim liabilities using standard actuarial loss development methods and techniques. The actuarial methods utilize historical claims data, adjusted when deemed appropriate to reflect perceived changes in loss patterns. Claim liabilities include average, case, case development and IBNR estimates.


BRK.A GEICO

We establish average liabilities based on expected severities for newly reported physical damage and liability claims prior to establishing individual case reserves when insufficient time or information is available for specific claim estimates and for large volumes of minor physical damage claims that are quickly settled. We establish case loss estimates for liability claims, including estimates for loss adjustment expenses based on the facts and merits of the claim.


BRK.A GEICO

Claim estimates for liability coverages normally reflect greater uncertainty than for physical damage coverages, primarily due to the longer claim-tails, the greater chance of litigation and the time needed to evaluate facts at the time the case estimate is first established. Consequently, we establish additional case development liabilities, which are usually percentages of the case liabilities. For unreported claims, IBNR claim liabilities are estimated by projecting the ultimate number of claims expected (reported and unreported) for each significant coverage based on historical data, from which reported claims are deducted to produce the estimated number of unreported claims. The product of the average cost per unreported claim and the number of unreported claims produces the IBNR liability estimate. We may record supplemental IBNR liabilities in certain situations when actuarial techniques are difficult to apply.


GEICO’s net incurred and paid auto physical damage and liability losses and ALAE are summarized by accident year below. IBNR and case development liabilities are as of December 31, 2023 and are net of estimated salvage and subrogation recoveries. Claim counts are established when accidents that could result in a liability are reported and are based on policy coverage. Each claim event may generate claims under multiple coverages and may result in multiple counts. The “Cumulative Number of Reported Claims” includes the combined number of reported claims for all auto policy coverages. Dollars are in millions.


BRK.A Physical Damage

######Incurred Losses and ALAE through December 31,############Cumulative Number of Accident Year####2022*######2023####IBNR and Case Development Liabilities####Reported Claims (in thousands) 2022##$##14,138####$##13,699##$##(56##)##9,161 2023##########12,273####(691##)##7,295 ##Incurred losses and ALAE######$##25,972######## ######Cumulative Paid Losses and ALAE through December 31,############ Accident Year####2022*######2023######## 2022##$##13,251####$##13,731######## 2023##########11,567######## ##Paid losses and ALAE########25,298######## ##Net unpaid losses and ALAE for 2022 – 2023 accident years########674######## ##Net unpaid losses and ALAE for accident years before 2022########63######## ##Net unpaid losses and ALAE######$##737########


BRK.A Auto Liability

##############Incurred Losses and ALAE through December 31,##############Cumulative Number of Accident Year####2019*####2020*######2021*####2022*####2023####IBNR and Case Development Liabilities##Reported Claims (in thousands) 2019##$##16,901##$##16,678####$##16,191##$##16,151##$##16,168##$##348##2,797 2020########14,637######14,024####13,697####13,593####666##2,123 2021##############17,481####17,457####17,229####1,559##2,446 2022##################19,645####18,903####3,316##2,360 2023######################17,948####5,567##1,804 ##########Incurred losses and ALAE##########$##83,841###### ##############Cumulative Paid Losses and ALAE through December 31,############## Accident Year####2019*####2020*######2021*####2022*####2023###### 2019##$##6,742##$##11,671####$##13,851##$##15,084##$##15,593###### 2020########5,395######9,839####11,794####12,608###### 2021##############6,450####12,681####14,863###### 2022##################7,614####13,838###### 2023######################7,191###### ##########Paid losses and ALAE############64,093###### ##########Net unpaid losses and ALAE for 2019 – 2023 accident years############19,748###### ##########Net unpaid losses and ALAE for accident years before 2019############729###### ##########Net unpaid losses and ALAE##########$##20,477######


BRK.A BH Primary

BH Primary’s liabilities for unpaid losses and loss adjustment expenses primarily derive from medical professional liability and workers’ compensation and other casualty insurance, which includes commercial auto and general liability insurance. Net incurred and paid losses and ALAE are summarized by accident year in the following tables, disaggregated by medical professional liability coverages and workers’ compensation and other casualty coverages. IBNR and case development liabilities are as of December 31, 2023. The cumulative number of reported claims reflects the number of individual claimants and includes claims that ultimately resulted in no liability or payment. Dollars are in millions.


BRK.A Medical Professional Liability

We estimate the ultimate expected incurred losses and loss adjustment expenses for medical professional claim liabilities using a variety of commonly accepted actuarial methodologies, such as the paid and incurred development method and Bornhuetter-Ferguson based methods, as well as other techniques that consider insured loss exposures and historical and expected loss trends, among other factors. These methodologies produce loss estimates from which we determine our best estimate. In addition, we study developments in older accident years and adjust initial loss estimates to reflect recent developments based upon claim age, coverage and litigation experience. ######################Incurred Losses and ALAE through December 31,##########################Cumulative Number of Accident Year####2014*####2015*####2016*####2017*####2018*######2019*####2020*####2021*####2022*####2023####IBNR and Case Development Liabilities##Reported Claims (in thousands) 2014##$##1,370##$##1,375##$##1,305##$##1,246##$##1,218####$##1,127##$##1,061##$##1,033##$##1,029##$##1,007##$##45##11 2015########1,374####1,342####1,269####1,290######1,218####1,157####1,093####1,033####1,016####55##12 2016############1,392####1,416####1,414######1,394####1,341####1,288####1,216####1,188####105##15 2017################1,466####1,499######1,495####1,474####1,382####1,349####1,315####117##21 2018####################1,602######1,650####1,659####1,580####1,616####1,606####205##24 2019##########################1,670####1,691####1,663####1,614####1,534####320##21 2020##############################1,704####1,751####1,698####1,631####615##32 2021##################################1,852####1,855####1,787####1,053##25 2022######################################1,927####1,912####1,403##20 2023##########################################1,964####1,781##17 ####################Incurred losses and ALAE####################$##14,960###### ######################Cumulative Paid Losses and ALAE through December 31,########################## Accident Year####2014*####2015*####2016*####2017*####2018*######2019*####2020*####2021*####2022*####2023###### 2014##$##21##$##106##$##238##$##396##$##540####$##671##$##752##$##788##$##840##$##869###### 2015########23####108####218####382######543####663####719####799####843###### 2016############22####115####274######461####620####712####822####908###### 2017################27####128######300####457####582####739####877###### 2018####################35######166####367####543####728####949###### 2019##########################39####160####314####536####757###### 2020##############################34####148####321####531###### 2021##################################36####136####333###### 2022######################################38####182###### 2023##########################################28###### ####################Paid losses and ALAE######################6,277###### ####################Net unpaid losses and ALAE for 2014 – 2023 accident years######################8,683###### ####################Net unpaid losses and ALAE for accident years before 2014######################483###### ####################Net unpaid losses and ALAE####################$##9,166######


BRK.A Workers’ Compensation and Other Casualty

We periodically evaluate ultimate loss and loss adjustment expense estimates for workers’ compensation and other casualty claims using a combination of commonly accepted actuarial methodologies such as the Bornhuetter-Ferguson and chain-ladder approaches using paid and incurred loss data. Paid and incurred loss data is segregated and analyzed by state due to the different state regulatory frameworks that may impact certain factors, including the duration and amount of loss payments. We also separately study the various components of liabilities, such as employee lost wages, medical expenses and the costs of claims investigations and administration. We establish case liabilities for reported claims based upon the facts and circumstances of the claim. The excess of the ultimate projected losses, including the expected development of case estimates, and the case-basis liabilities is included in IBNR liabilities. ######################Incurred Losses and ALAE through December 31,##########################Cumulative Number of Accident Year####2014*####2015*####2016*####2017*####2018*######2019*####2020*####2021*####2022*####2023####IBNR and Case Development Liabilities##Reported Claims (in thousands) 2014##$##2,138##$##2,064##$##2,036##$##1,970##$##1,901####$##1,906##$##1,875##$##1,861##$##1,829##$##1,810##$##115##103 2015########2,580####2,539####2,455####2,426######2,428####2,402####2,408####2,393####2,358####201##120 2016############2,931####2,848####2,793######2,772####2,815####2,825####2,864####2,840####361##125 2017################3,473####3,337######3,299####3,310####3,322####3,320####3,321####422##143 2018####################3,998######3,886####3,967####4,030####4,091####4,177####643##163 2019##########################4,584####4,623####4,692####4,763####4,847####867##184 2020##############################5,030####4,881####4,775####4,774####1,467##156 2021##################################5,899####5,856####5,882####2,455##316 2022######################################6,796####6,757####3,646##308 2023##########################################7,299####5,187##132 ####################Incurred losses and ALAE####################$##44,065###### ######################Cumulative Paid Losses and ALAE through December 31,########################## Accident Year####2014*####2015*####2016*####2017*####2018*######2019*####2020*####2021*####2022*####2023###### 2014##$##286##$##683##$##1,002##$##1,269##$##1,407####$##1,504##$##1,557##$##1,600##$##1,617##$##1,646###### 2015########329####804####1,187####1,507######1,766####1,873####1,966####2,041####2,070###### 2016############373####908####1,359######1,765####1,998####2,140####2,303####2,377###### 2017################480####1,133######1,645####2,050####2,279####2,492####2,673###### 2018####################583######1,340####1,902####2,324####2,746####3,120###### 2019##########################725####1,598####2,214####2,898####3,430###### 2020##############################736####1,498####2,066####2,598###### 2021##################################869####1,751####2,440###### 2022######################################962####2,012###### 2023##########################################1,056###### ####################Paid losses and ALAE######################23,422###### ####################Net unpaid losses and ALAE for 2014 – 2023 accident years######################20,643###### ####################Net unpaid losses and ALAE for accident years before 2014######################587###### ####################Net unpaid losses and ALAE####################$##21,230######


BRK.A BHRG

We use a variety of methodologies to establish BHRG’s estimates for property and casualty claim liabilities. These methodologies include paid and incurred loss development techniques, incurred and paid loss Bornhuetter-Ferguson techniques and frequency and severity techniques, as well as ground-up techniques when appropriate.


Our claim liabilities are principally a function of reported losses from ceding companies, case development and IBNR liability estimates. Case loss estimates are reported either individually or in bulk as provided under the terms of the contracts. We may independently evaluate case losses reported by the ceding company, and if deemed appropriate, establish additional case liabilities based on our estimates.


Estimated IBNR liabilities are affected by expected case loss emergence patterns and expected loss ratios, which are evaluated as groups of contracts with similar exposures or on a contract-by-contract basis. Estimated case and IBNR liabilities for major catastrophe events are generally based on a per-contract assessment of the ultimate cost associated with the individual loss event. Claim count data is not provided consistently by ceding companies under our contracts or is otherwise considered unreliable.


Net incurred and paid losses and ALAE of BHRG are disaggregated based on losses that are expected to have shorter claim-tails (property) and losses expected to have longer claim-tails (casualty). Under certain contracts, the coverage can apply to multiple lines of business written by the ceding company, whether property, casualty or combined, and the ceding company may not report loss data by such lines consistently, if at all. In those instances, we allocated losses to property and casualty coverages based on internal estimates. BHRG’s disaggregated incurred and paid losses and ALAE are summarized by accident year. IBNR and case development liabilities are as of December 31, 2023. Dollars are in millions.


BRK.A Property

######################Incurred Losses and ALAE through December 31,######################## Accident Year####2014*####2015*####2016*####2017*####2018*######2019*####2020*####2021*####2022*####2023####IBNR and Case Development Liabilities 2014##$##3,095##$##2,849##$##2,725##$##2,567##$##2,508####$##2,432##$##2,400##$##2,393##$##2,373##$##2,376##$##27 2015########3,605####3,414####2,847####3,237######3,232####3,253####3,255####3,248####3,272####60 2016############3,926####4,515####4,192######4,155####4,150####4,139####4,117####4,106####26 2017################6,397####6,096######5,918####5,791####5,713####5,631####5,612####64 2018####################5,486######5,579####5,437####5,293####5,299####5,249####172 2019##########################4,986####5,129####4,901####4,574####4,527####162 2020##############################6,928####7,208####6,876####6,657####610 2021##################################8,103####7,976####7,640####896 2022######################################8,880####8,453####2,228 2023##########################################7,993####4,140 ##################Incurred losses and ALAE######################$##55,885#### ######################Cumulative Paid Losses and ALAE through December 31,######################## Accident Year####2014*####2015*####2016*####2017*####2018*######2019*####2020*####2021*####2022*####2023#### 2014##$##572##$##1,520##$##1,899##$##2,059##$##2,135####$##2,187##$##2,218##$##2,242##$##2,272##$##2,295#### 2015########671####1,804####2,210####2,429######2,538####2,721####2,807####2,860####2,933#### 2016############915####2,214####2,677######3,167####3,436####3,632####3,741####3,820#### 2017################1,348####3,508######4,583####4,936####5,171####5,364####5,454#### 2018####################1,208######3,093####3,735####4,020####4,265####4,473#### 2019##########################1,012####2,848####3,566####3,898####4,058#### 2020##############################1,255####3,584####4,634####5,298#### 2021##################################1,624####4,095####5,414#### 2022######################################1,814####4,333#### 2023##########################################1,777#### ##################Paid losses and ALAE########################39,855#### ##################Net unpaid losses and ALAE for 2014 – 2023 accident years########################16,030#### ##################Net unpaid losses and ALAE for accident years before 2014########################469#### ##################Net unpaid losses and ALAE######################$##16,499####


BRK.A Casualty

######################Incurred Losses and ALAE through December 31,######################## Accident Year####2014*####2015*####2016*####2017*####2018*######2019*####2020*####2021*####2022*####2023####IBNR and Case Development Liabilities 2014##$##3,507##$##3,672##$##3,619##$##3,557##$##3,456####$##3,472##$##3,446##$##3,334##$##3,298##$##3,265##$##424 2015########3,422####3,628####3,668####3,580######3,438####3,401####3,364####3,310####3,312####373 2016############3,788####3,998####3,902######3,870####3,819####3,775####3,746####3,773####416 2017################4,039####4,474######4,351####4,244####4,176####4,165####4,222####547 2018####################4,886######5,537####5,489####5,358####5,285####5,370####756 2019##########################5,572####6,043####5,902####5,736####5,695####1,228 2020##############################6,214####6,231####6,047####6,093####1,750 2021##################################6,310####6,285####5,957####2,299 2022######################################6,061####6,112####3,505 2023##########################################6,071####4,656 ####################Incurred losses and ALAE####################$##49,870#### ######################Cumulative Paid Losses and ALAE through December 31,######################## Accident Year####2014*####2015*####2016*####2017*####2018*######2019*####2020*####2021*####2022*####2023#### 2014##$##429##$##1,002##$##1,390##$##1,662##$##1,917####$##2,103##$##2,311##$##2,405##$##2,493##$##2,560#### 2015########446####995####1,431####1,731######2,003####2,197####2,345####2,481####2,590#### 2016############654####1,359####1,801######2,149####2,420####2,613####2,789####2,963#### 2017################607####1,311######1,829####2,478####2,727####2,945####3,171#### 2018####################695######1,742####2,792####3,258####3,637####3,954#### 2019##########################841####1,872####2,423####3,190####3,736#### 2020##############################868####1,905####2,715####3,379#### 2021##################################766####1,785####2,661#### 2022######################################622####1,338#### 2023##########################################692#### ####################Paid losses and ALAE######################27,044#### ####################Net unpaid losses and ALAE for 2014 – 2023 accident years######################22,826#### ####################Net unpaid losses and ALAE for accident years before 2014######################9,567#### ####################Net unpaid losses and ALAE####################$##32,393####


BRK.A * Unaudited required supplemental information

Required supplemental unaudited average historical claims duration information based on the net losses and ALAE incurred and paid accident year data in the preceding tables follows. The percentages show the average portions of net losses and ALAE paid by each succeeding year, with year 1 representing the current accident year. ############Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance########## In Year##1##2##3##4##5####6##7##8##9##10 GEICO Physical Damage##97%##3%################## GEICO Auto Liability##41%##31%##13%##7%##4%############ BH Primary Medical Professional Liability##2%##8%##12%##14%##13%####12%##8%##6%##5%##3% BH Primary Workers’ Compensation and Other Casualty##15%##18%##14%##13%##9%####6%##5%##3%##1%##2% BHRG Property##22%##35%##15%##8%##4%####4%##2%##2%##2%##1% BHRG Casualty##14%##17%##13%##11%##8%####6%##5%##4%##3%##2%


BRK.A Notes to Consolidated Financial Statements (17)Retroactive reinsurance contracts

Retroactive reinsurance policies provide indemnification of losses and loss adjustment expenses of short-duration insurance contracts with respect to underlying loss events that occurred prior to the contract inception date, which may include significant levels of asbestos, environmental and other mass tort claims. Retroactive reinsurance contracts are generally subject to aggregate policy limits and thus, our exposure to such claims under these contracts is likewise limited. Reconciliations of the changes in estimated liabilities for retroactive reinsurance unpaid losses and loss adjustment expenses for each of the three years ended December 31, 2023 follow (in millions). ####2023######2022######2021## Balance at the beginning of the year##$##35,415####$##37,855####$##40,623## Incurred losses and loss adjustment expenses:################## Current year contracts####—######—######153## Prior years’ contracts####1,109######86######(974##) Total####1,109######86######(821##) Paid losses and loss adjustment expenses####(1,934##)####(2,358##)####(1,889##) Foreign currency effect####57######(168##)####(58##) Balance at December 31##$##34,647####$##35,415####$##37,855## Incurred losses and loss adjustment expenses above##$##1,109####$##86####$##(821##) Deferred charge amortization and adjustments####375######769######1,802## Incurred losses and loss adjustment expenses included in the Consolidated  Statements of Earnings##$##1,484####$##855####$##981##


In the preceding table, the classification of incurred losses and loss adjustment expenses is based on the inception dates of the contracts, which reflect when our exposure to losses began. We believe that analysis of losses incurred and paid by accident year of the underlying event is irrelevant given that our exposure to losses incepts when the contract incepts and that the classification of reported claims and case development liabilities has little or no practical analytical value.


Incurred losses and loss adjustment expenses in the Consolidated Statements of Earnings include changes in estimated liabilities and related deferred charge asset amortization and adjustments arising from the changes in estimated timing and amount of future loss payments. In 2023, we increased estimated ultimate liabilities under certain contracts by $1.1 billion, which after adjustments to related deferred charge assets, produced an increase in incurred losses and loss adjustment expenses of approximately $650 million. The increase derived from higher estimates for asbestos, environmental and other casualty claims. Unamortized deferred charges on retroactive reinsurance contracts were $9.5 billion at December 31, 2023 and $9.9 billion at December 31, 2022.


In establishing retroactive reinsurance claim liabilities, we analyze historical aggregate loss payment patterns and project losses into the future under various probability-weighted scenarios. We expect the claim-tail to be very long for many contracts, with some lasting several decades. We monitor claim payment activity and review ceding company reports and other information concerning the underlying losses. We revise the expected timing and amounts of ultimate losses periodically or when significant events are revealed.


We monitor evolving case law and its effect on asbestos, environmental and other mass tort claims. Changing laws or government regulations, as well as newly identified toxins and injury events, newly reported claims, new theories of liability, new contract interpretations and other factors could result in increases in these liabilities, which could be material to our results of operations. We are unable to reliably estimate the amount of additional net loss or the range of net loss that is reasonably possible. Our estimates of ultimate liabilities for asbestos and environmental exposures under our contracts were approximately $12.2 billion at December 31, 2023 and $12.1 billion at December 31, 2022.


BRK.A Notes to Consolidated Financial Statements (18)Long-duration insurance contracts

We write periodic payment annuity and life and health insurance contracts, which are considered long-duration insurance contracts under GAAP. A summary of our life, annuity and health insurance benefits liabilities disaggregated by our two primary product categories, periodic payment annuities and life and health insurance, and other liabilities, which primarily consist of incurred-but-not-reported claims and claims in the course of settlement, follows (in millions). ########December 31,#### ####2023####2022####2021 Periodic payment annuities##$##11,212##$##10,640##$##16,153 Life and health####5,749####5,879####7,688 Other liabilities####3,252####3,234####3,454 ##$##20,213##$##19,753##$##27,295


Reconciliations of our periodic payment annuity and life and health insurance benefits liabilities before ceded reinsurance for each of the three years ended December 31, 2023 follow (in millions). This information reflects the changes in discounted present values of expected future policy benefits and expected future net premiums. Net premiums represent the portion of expected gross premiums that are required to provide for future policy benefits and variable expenses. ##########Periodic payment annuities################Life and health######## ####2023######2022######2021####2023######2022######2021## Expected future policy benefits:################################## Balance at the beginning of the year##$##10,640####$##16,153####$##17,122##$##52,008####$##63,648####$##66,528## Balance at the beginning of the year - original discount rates####11,549######11,261######10,569####63,584######60,133######58,247## Effect of cash flow assumption changes####—######—######—####(829##)####2,261######(354##) Effect of actual from expected experience####5######121######8####(352##)####927######1,011## Change in benefits, net####(470##)####(297##)####138####1,616######671######394## Interest accrual####537######535######528####1,787######1,644######1,670## Foreign currency effect####60######(71##)####18####65######(2,052##)####(835##) Balance at December 31 - original discount rates####11,681######11,549######11,261####65,871######63,584######60,133## Effect of changes in discount rate assumptions####(469##)####(909##)####4,892####(13,206##)####(11,576##)####3,515## Balance at December 31##$##11,212####$##10,640####$##16,153##$##52,665####$##52,008####$##63,648## Expected future net premiums:################################## Balance at the beginning of the year##################$##46,129####$##55,960####$##58,198## Balance at the beginning of the year - original discount rates####################56,535######53,277######51,370## Effect of cash flow assumption changes####################(880##)####2,163######(270##) Effect of actual from expected experience####################(181##)####676######572## Change in premiums, net####################1,645######928######908## Interest accrual####################1,566######1,434######1,444## Foreign currency effect####################46######(1,943##)####(747##) Balance at December 31 - original discount rates####################58,731######56,535######53,277## Effect of changes in discount rate assumptions####################(11,815##)####(10,406##)####2,683## Balance at December 31##################$##46,916####$##46,129####$##55,960## Liability for future policy benefits:################################## Balance at December 31##$##11,212####$##10,640####$##16,153##$##5,749####$##5,879####$##7,688## Reinsurance recoverables####—######—######—####(1,571##)####(1,559##)####(2,152##) Balance at December 31,  net of reinsurance recoverables##$##11,212####$##10,640####$##16,153##$##4,178####$##4,320####$##5,536##


The undiscounted and discounted expected future gross premiums to be collected and undiscounted expected future benefits for periodic payment annuities and life and health insurance as of December 31, 2023, 2022 and 2021 are summarized below (in millions). ########Undiscounted expected future gross premiums############Discounted expected future gross premiums############Undiscounted expected future benefits#### ####2023####2022####2021####2023####2022####2021####2023####2022####2021 Periodic payment annuities##$##—##$##—##$##—##$##—##$##—##$##—##$##31,066##$##31,156##$##30,260 Life and health####117,078####109,321####102,768####66,692####66,460####64,378####111,630####104,544####98,224


Gross premiums earned on long-duration contracts are included in insurance premiums earned, and interest expense on long-duration insurance contracts is included as a component of life, annuity and health benefits in our Consolidated Statements of Earnings. Gross premiums earned and interest expense before the impact of reinsurance ceded for each of the three years ended December 31, 2023 follow (in millions). ########Gross Premiums############Interest Expense#### ####2023####2022####2021####2023####2022####2021 Periodic payment annuities##$##—##$##582##$##655##$##537##$##535##$##528 Life and health####3,627####3,760####3,906####221####210####226


BRK.A Notes to Consolidated Financial Statements (18)Long-duration insurance contracts (19)Notes payable and other borrowings

The weighted average discount rates, interest accretion rates and the average contract durations as of December 31, 2023, 2022 and 2021 for periodic payment annuities and life and health insurance are summarized below. ##2023####2022####2021## Periodic payment annuities############ Weighted average discount rate##5.1##%##5.3##%##2.7##% Weighted average accretion rate##4.8##%##4.8##%##4.9##% Weighted average duration##18 years####17 years####22 years## Life and health############ Weighted average discount rate##5.1##%##4.7##%##2.4##% Weighted average accretion rate##3.3##%##3.4##%##3.4##% Weighted average duration##13 years####14 years####15 years##


BRK.A Notes payable and other borrowings of our insurance and other businesses are summarized below (dollars are in millions). The weighted average interest rates and maturity date ranges are based on borrowings as of December 31, 2023.

##Weighted Average########December 31,#### ##Interest Rate######2023######2022 Insurance and other:############## Berkshire Hathaway Inc. (“Berkshire”):############## U.S. Dollar denominated due 2025-2047##3.5##%##$##3,740####$##6,231 Euro denominated due 2024-2041##1.1##%####6,145######7,344 Japanese Yen denominated due 2024-2060##0.8##%####8,896######7,818 Berkshire Hathaway Finance Corporation (“BHFC”):############## U.S. Dollar denominated due 2027-2052##3.6##%####14,463######14,458 Great Britain Pound denominated due 2039-2059##2.5##%####2,191######2,078 Euro denominated due 2030-2034##1.8##%####1,374######1,332 Other subsidiary borrowings due 2024-2051##4.5##%####4,696######5,967 Short-term subsidiary borrowings##7.3##%####1,187######1,310 ######$##42,692####$##46,538


BRK.A Notes to Consolidated Financial Statements (19)Notes payable and other borrowings

Berkshire parent company borrowings consist of senior unsecured debt. During 2023, Berkshire repaid approximately $4.3 billion of maturing senior notes and issued ¥286.4 billion par (approximately $2.05 billion) of senior notes with a weighted average interest rate of 1.15% and maturity dates ranging from 2026 to 2058. Borrowings of BHFC, a wholly owned finance subsidiary of Berkshire, consist of senior unsecured notes used to fund manufactured housing loans originated or acquired and equipment held for lease of certain subsidiaries. BHFC borrowings are fully and unconditionally guaranteed by Berkshire. Berkshire also guarantees certain debt of other subsidiaries, aggregating approximately $2.7 billion at December 31, 2023. Generally, Berkshire’s guarantee of a subsidiary’s debt obligation is an absolute, unconditional and irrevocable guarantee for the full and prompt payment when due of all payment obligations.


The carrying values of Berkshire and BHFC non-U.S. Dollar denominated senior notes (€6.85 billion, £1.75 billion and ¥1,259 billion par at December 31, 2023) reflect the applicable exchange rates as of each balance sheet date. The effects of changes in foreign currency exchange rates during the period on our borrowings are recorded in earnings as a component of selling, general and administrative expenses. Changes in the exchange rates produced pre-tax gains of $217 million in 2023, $1.7 billion in 2022 and $1.3 billion in 2021.


BRK.A Notes payable and other borrowings of our railroad, utilities and energy businesses are summarized below (dollars are in millions). The weighted average interest rates and maturity date ranges are based on borrowings as of December 31, 2023.

##Weighted Average########December 31,#### ##Interest Rate######2023######2022 Railroad, utilities and energy:############## Berkshire Hathaway Energy Company (“BHE”) and subsidiaries:############## BHE senior unsecured debt due 2025-2053##4.4##%##$##13,101####$##13,996 Subsidiary and other debt due 2024-2064##4.4##%####39,072######37,639 Short-term borrowings##5.9##%####4,148######1,119 Pilot Travel Centers (“PTC”) and subsidiaries due 2024-2028##7.2##%####5,776######— Burlington Northern Santa Fe (“BNSF”) and subsidiaries due 2024-2097##4.6##%####23,482######23,452 ######$##85,579####$##76,206


BHE subsidiary debt represents amounts issued pursuant to separate financing agreements. Substantially all of the assets of certain BHE subsidiaries are, or may be, pledged or encumbered to support or otherwise secure such debt. These borrowing arrangements generally contain various covenants, including covenants which pertain to leverage ratios, interest coverage ratios and/or debt service coverage ratios. In 2023, BHE subsidiaries issued $4.2 billion par of term debt with a weighted average interest rate of 5.7% and maturity dates ranging from 2033 to 2055, and BHE and its subsidiaries repaid approximately $3.7 billion of term debt. In 2024, BHE subsidiaries issued $5.1 billion of term debt with a weighted average interest rate of 5.4% and maturity dates ranging from 2029 to 2055 and repaid short term borrowings of approximately $2.8 billion.


PTC’s borrowings primarily represent secured syndicated loans. BNSF’s borrowings are primarily senior unsecured debentures. During 2023, BNSF issued $1.6 billion par of 5.2% debentures due in 2054 and repaid approximately $1.6 billion of term debt. As of December 31, 2023, BHE, BNSF and PTC and their subsidiaries were in compliance with all applicable debt covenants. Berkshire does not guarantee any debt, borrowings or lines of credit of BHE, BNSF, PTC or their subsidiaries.


Unused lines of credit and commercial paper capacity to support operations and provide additional liquidity for our subsidiaries were approximately $9.4 billion at December 31, 2023, of which approximately $6.0 billion related to BHE and its subsidiaries.


Debt principal repayments expected during each of the next five years are as follows (in millions). Amounts in 2024 include short-term borrowings. ####2024####2025####2026####2027####2028 Insurance and other##$##3,295##$##3,076##$##4,499##$##2,877##$##1,413 Railroad, utilities and energy####10,564####3,972####1,554####1,672####5,020 ##$##13,859##$##7,048##$##6,053##$##4,549##$##6,433


BRK.A Notes to Consolidated Financial Statements (20)Income taxes

Liabilities for income taxes reflected in our Consolidated Balance Sheets are as follows (in millions). ######December 31,#### ####2023######2022 Currently payable##$##185####$##511 Deferred####92,344######76,417 Other####480######440 ##$##93,009####$##77,368


The tax effects of temporary differences that pertain to our deferred income tax assets and liabilities are shown below (in millions). ########December 31,###### ####2023########2022## Deferred income tax liabilities:############## Investments, including unrealized appreciation##$##56,766######$##41,150## Deferred charges reinsurance assumed####1,994########2,073## Property, plant and equipment and equipment held for lease####32,991########32,080## Goodwill and other intangible assets####7,546########7,010## Other####4,452########5,162## ####103,749########87,475## Deferred income tax assets:############## Unpaid losses and loss adjustment expenses####(1,255##)######(1,290##) Unearned premiums####(1,285##)######(1,196##) Accrued liabilities####(2,626##)######(1,790##) Regulatory liabilities####(1,248##)######(1,323##) Deferred revenue####(2,282##)######(1,880##) Other####(2,709##)######(3,579##) ####(11,405##)######(11,058##) Net deferred income tax liability##$##92,344######$##76,417##


We have not established deferred income taxes on accumulated undistributed earnings of certain foreign subsidiaries, which are expected to be reinvested indefinitely. Repatriation of all accumulated earnings of foreign subsidiaries would be impracticable to the extent that such earnings represent capital to support ongoing business operations. Generally, no U.S. federal income taxes will be imposed on future distributions of foreign earnings under current law. However, distributions to the U.S. or other foreign jurisdictions could be subject to withholding and other local taxes.


Income tax expense (benefit) reflected in our Consolidated Statements of Earnings for each of the three years ending December 31, 2023 was as follows (in millions). ####2023####2022######2021## U.S. Federal##$##20,764##$##(10,316##)##$##20,384## U.S. State####763####762######(527##) Foreign####1,492####1,052######1,055## ##$##23,019##$##(8,502##)##$##20,912## Current##$##7,642##$##4,815####$##5,326## Deferred####15,377####(13,317##)####15,586## ##$##23,019##$##(8,502##)##$##20,912##


Income tax expense (benefit) is reconciled to hypothetical amounts computed at the U.S. federal statutory rate for each of the three years ending December 31, 2023 in the table below (dollars in millions). ####2023######2022######2021## Earnings (loss) before income taxes##$##120,166####$##(30,500##)##$##111,861## Hypothetical income tax expense (benefit) at the U.S. federal statutory rate##$##25,235####$##(6,405##)##$##23,491## Dividends received deduction and tax-exempt interest####(678##)####(512##)####(457##) State income taxes, less U.S. federal income tax effect####603######602######(417##) U.S. income tax credits*####(2,186##)####(2,187##)####(1,860##) Other differences, net####45######—######155## ##$##23,019####$##(8,502##)##$##20,912## Effective income tax rate####19.2##%####27.9##%####18.7##%


* U.S. income tax credits derive primarily from production tax credits associated with wind-energy generation of BHE and tax credits arising from affordable housing investments.


We file income tax returns in the U.S. and in state, local and foreign jurisdictions. We have settled income tax liabilities with the U.S. federal taxing authority (“IRS”) for tax years through 2011. The 2012 and 2013 tax years are under review by the IRS’s Independent Office of Appeals, and the IRS is currently auditing tax years 2014 through 2019. We are also under audit or subject to audit with respect to income taxes in state and foreign jurisdictions. It is reasonably possible that certain of these income tax examinations will be settled in 2024. We currently do not believe that the outcome of unresolved issues or claims will be material to our Consolidated Financial Statements.


At December 31, 2023 and 2022, net unrecognized tax benefits were $480 million and $440 million, respectively. Included in the balance at December 31, 2023, were $420 million of tax positions that, if recognized, would impact the effective tax rate. We do not expect material increases to the estimated amount of unrecognized tax benefits during 2024.


On August 16, 2022, the Inflation Reduction Act of 2022 (“the 2022 Act”) was signed into law. The 2022 Act contains numerous provisions, including a 15% corporate alternative minimum income tax (“CAMT”) on “adjusted financial statement income”, expanded tax credits for clean energy incentives and a 1% excise tax on corporate stock repurchases. The provisions of the 2022 Act are effective for tax years beginning after December 31, 2022. The extent to which the Company incurs CAMT will depend on the facts and circumstances of the given tax year. We do not expect to incur a CAMT liability in 2023. The Internal Revenue Service and the U.S. Department of Treasury may release additional guidance in the future. We will continue to evaluate the impact of the 2022 Act as more guidance becomes available.


The Organization for Economic Co-operation and Development has issued Pillar Two model rules introducing a new global minimum tax of 15% intended to be effective on January 1, 2024. While the U.S. has not yet adopted the Pillar Two rules, various other governments around the world are enacting legislation. As currently designed, Pillar Two will ultimately apply to our worldwide operations. Considering we do not have material operations in jurisdictions with tax rates lower than the Pillar Two minimum, these rules are not expected to materially increase our global tax costs. There remains uncertainty as to the final Pillar Two model rules. We will continue to monitor U.S. and global legislative action related to Pillar Two for potential impacts.


BRK.A Notes to Consolidated Financial Statements (21)Fair value measurements

Our financial assets and liabilities are summarized below, with fair values shown according to the fair value hierarchy (in millions). The carrying values of cash and cash equivalents, U.S. Treasury Bills, other receivables and accounts payable, accruals and other liabilities are considered to be reasonable estimates of or otherwise approximate the fair values. ####Carrying Value####Fair Value####Quoted Prices (Level 1)####Significant Other Observable Inputs (Level 2)####Significant Unobservable Inputs (Level 3) December 31, 2023#################### Investments in fixed maturity securities:#################### U.S. Treasury, U.S. government corporations and agencies##$##10,269##$##10,269##$##10,234##$##35##$##— Foreign governments####11,805####11,805####11,559####246####— Corporate bonds####1,449####1,449####—####860####589 Other####235####235####—####235####— Investments in equity securities####353,842####353,842####343,358####10####10,474 Investments in Kraft Heinz & Occidental common  stock####28,640####26,587####26,587####—####— Loans and finance receivables####24,681####24,190####—####892####23,298 Derivative contract assets (1)####334####334####39####282####13 Derivative contract liabilities (1)####213####213####7####111####95


BRK.A Notes payable and other borrowings:####################

Insurance and other####42,692####39,184####—####39,153####31 Railroad, utilities and energy####85,579####81,036####—####81,036####— December 31, 2022#################### Investments in fixed maturity securities:#################### U.S. Treasury, U.S. government corporations and agencies##$##9,802##$##9,802##$##9,733##$##69##$##— Foreign governments####10,327####10,327####9,854####473####— Corporate bonds####2,195####2,195####—####1,546####649 Other####2,804####2,804####—####2,804####— Investments in equity securities####308,793####308,793####296,610####9####12,174 Investments in Kraft Heinz & Occidental common  stock####24,421####25,491####25,491####—####— Loans and finance receivables####23,208####23,428####—####1,513####21,915 Derivative contract assets (1)####589####589####56####474####59 Derivative contract liabilities (1)####242####242####8####122####112


Insurance and other####46,538####41,961####—####41,061####900 Railroad, utilities and energy####76,206####67,651####—####67,651####—


(1)Assets are included in other assets, and liabilities are included in accounts payable, accruals and other liabilities.


The fair values of substantially all of our financial instruments were measured using market or income approaches. The hierarchy for measuring fair value consists of Levels 1 through 3, which are described below.


Level 1 – Inputs represent unadjusted quoted prices for identical assets or liabilities exchanged in active markets.


Level 2 – Inputs include directly or indirectly observable inputs (other than Level 1 inputs) such as quoted prices for similar assets or liabilities exchanged in active or inactive markets; quoted prices for identical assets or liabilities exchanged in inactive markets; other inputs that may be considered in fair value determinations of the assets or liabilities, such as interest rates and yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Pricing evaluations generally reflect discounted expected future cash flows, which incorporate yield curves for instruments with similar characteristics, such as credit ratings, estimated durations and yields for other instruments of the issuer or entities in the same industry sector.


Level 3 – Inputs include unobservable inputs used in the measurement of assets and liabilities. Management is required to use its own assumptions regarding unobservable inputs because there is little, if any, market activity in the assets or liabilities and it may be unable to corroborate the related observable inputs. Unobservable inputs require management to make certain projections and assumptions about the information that would be used by market participants in valuing assets or liabilities.


Reconciliations of significant assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for each of the three years ending December 31, 2023 follow (in millions). ####Balance at the beginning of the year######Gains (losses) included in earnings######Acquisitions, dispositions and settlements######Transfers out of Level 3######Balance at the end of the year Investments in equity securities:############################ 2023##$##12,169####$##(40##)##$##(1,661##)##$##—####$##10,468 2022####11,480######689######—######—######12,169 2021####8,978######1,902######1,100######(500##)####11,480 Equity index put option contract liabilities:############################ 2021####(1,065##)####966######—######99######—


Quantitative information as of December 31, 2023 for the significant assets measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) follows (dollars in millions). ####Fair Value##Principal Valuation Techniques##Unobservable Inputs##Weighted Average Investments in equity securities:########## Preferred stock##$##8,688##Discounted cash flow##Expected duration##6 years ########Discount for transferability restrictions and subordination##372 bps Common stock warrants####1,780##Warrant pricing model##Expected duration##6 years ########Volatility##41%


BRK.A Notes to Consolidated Financial Statements (21)Fair value measurements (22)Common stock

Investments in equity securities in the preceding table include our investments in certain preferred and common stock warrants that do not have readily determinable market values as defined under GAAP. These investments are private placements with contractual terms that restrict transfers and currently prevent us from economically hedging our investments. We applied discounted cash flow techniques in valuing the preferred stock and we made assumptions regarding the expected duration of the investment and the effects of subordination in liquidation. In valuing the common stock warrants, we used a warrant valuation model. While most of the inputs to the warrant model are observable, we made assumptions regarding the expected duration and volatility.


The changes in Berkshire’s issued, treasury and outstanding common stock for each of the three years ending December 31, 2023 are shown in the table below. In addition, 1,000,000 shares of preferred stock are authorized, but none are issued. ######Class A, $5 Par Value (1,650,000 shares authorized)##########Class B, $0.0033 Par Value (3,225,000,000 shares authorized)###### ##Issued####Treasury####Outstanding####Issued##Treasury####Outstanding## Balance at December 31, 2020##678,523####(34,592##)##643,931####1,469,359,852##(119,316,381##)##1,350,043,471## Conversions of Class A to Class B common stock##(12,622##)##—####(12,622##)##18,933,000##—####18,933,000## Treasury stock acquired##—####(14,196##)##(14,196##)##—##(78,501,968##)##(78,501,968##) Balance at December 31, 2021##665,901####(48,788##)##617,113####1,488,292,852##(197,818,349##)##1,290,474,503## Conversions of Class A to Class B common stock##(14,451##)##—####(14,451##)##21,676,500##—####21,676,500## Treasury stock acquired##—####(11,098##)##(11,098##)##—##(9,896,927##)##(9,896,927##) Balance at December 31, 2022##651,450####(59,886##)##591,564####1,509,969,352##(207,715,276##)##1,302,254,076## Conversions of Class A to Class B common stock##(12,122##)##—####(12,122##)##18,183,000##—####18,183,000## Treasury stock acquired##—####(11,667##)##(11,667##)##—##(9,875,568##)##(9,875,568##) Balance at December 31, 2023##639,328####(71,553##)##567,775####1,528,152,352##(217,590,844##)##1,310,561,508##


Each Class A common share is entitled to one vote per share. Class B common stock possesses dividend and distribution rights equal to one-fifteen-hundredth (1/1,500) of such rights of Class A common stock. Each Class B common share possesses voting rights equal to one-ten-thousandth (1/10,000) of the voting rights of a Class A share. Unless otherwise required under Delaware General Corporation Law, Class A and Class B common shares vote as a single class. Each share of Class A common stock is convertible, at the option of the holder, into 1,500 shares of Class B common stock. Class B common stock is not convertible into Class A common stock. On an equivalent Class A common stock basis, there were 1,441,483 shares outstanding as of December 31, 2023 and 1,459,733 shares outstanding as of December 31, 2022.


Since we have two classes of common stock, we provide earnings per share data on the Consolidated Statements of Earnings for average equivalent Class A shares outstanding and average equivalent Class B shares outstanding. Class B shares are economically equivalent to one-fifteen-hundredth (1/1,500) of a Class A share. Average equivalent Class A shares outstanding represents average Class A shares outstanding plus one-fifteen-hundredth (1/1,500) of the average Class B shares outstanding. Average equivalent Class B shares outstanding represents average Class B shares outstanding plus 1,500 times average Class A shares outstanding.


Berkshire’s common stock repurchase program, as amended, permits Berkshire to repurchase shares any time that Warren Buffett, Berkshire’s Chairman of the Board and Chief Executive Officer, believes that the repurchase price is below Berkshire’s intrinsic value, conservatively determined. The program continues to allow share repurchases in the open market or through privately negotiated transactions and does not specify a maximum number of shares to be repurchased. However, repurchases will not be made if they would reduce the total value of Berkshire’s consolidated cash, cash equivalents and U.S. Treasury Bill holdings below $30 billion. The repurchase program does not obligate Berkshire to repurchase any specific dollar amount or number of Class A or Class B shares and there is no expiration date to the program.


BRK.A Notes to Consolidated Financial Statements (23)Revenues from contracts with customers

The following table summarizes customer contract revenues disaggregated by reportable segment and the source of the revenue for each of the three years ended December 31, 2023 (in millions). Revenues from PTC in 2023 are for the eleven months ending December 31, 2023. Other revenues, which are not considered to be revenues from contracts with customers under GAAP, are primarily insurance premiums earned, interest, dividend and other investment income and leasing revenues. 2023####Manufacturing####McLane####Service and Retailing####BNSF####Berkshire Hathaway Energy####PTC####Insurance, Corporate and other####Total Manufactured products:################################ Industrial and commercial##$##28,066##$##—##$##233##$##—##$##—##$##—##$##—##$##28,299 Building####20,119####—####—####—####—####—####—####20,119 Consumer####17,702####—####—####—####—####—####—####17,702 Grocery and convenience store distribution####—####31,524####—####—####—####—####—####31,524 Food and beverage distribution####—####19,040####—####—####—####—####—####19,040 Auto sales####—####—####10,747####—####—####—####—####10,747 Other retail and wholesale distribution####3,289####—####16,289####—####—####2,423####—####22,001 Service####1,457####1,079####5,474####23,724####4,055####264####—####36,053 Electricity, natural gas and fuel####—####—####—####—####20,647####48,774####—####69,421 Total####70,633####51,643####32,743####23,724####24,702####51,461####—####254,906 Other revenues####4,650####171####7,136####67####1,258####203####96,091####109,576 ##$##75,283##$##51,814##$##39,879##$##23,791##$##25,960##$##51,664##$##96,091##$##364,482 2022################################ Manufactured products:################################ Industrial and commercial##$##24,566##$##—##$##199##$##—##$##—######$##—##$##24,765 Building####22,762####—####—####—####—########—####22,762 Consumer####19,912####—####—####—####—########—####19,912 Grocery and convenience store distribution####—####32,599####—####—####—########—####32,599 Food and beverage distribution####—####19,388####—####—####—########—####19,388 Auto sales####—####—####10,486####—####—########—####10,486 Other retail and wholesale distribution####3,195####—####16,931####—####—########—####20,126 Service####1,199####1,103####4,439####25,742####4,933########—####37,416 Electricity and natural gas####—####—####—####—####20,317########—####20,317 Total####71,634####53,090####32,055####25,742####25,250########—####207,771 Other revenues####4,016####119####6,154####60####1,097########82,803####94,249 ##$##75,650##$##53,209##$##38,209##$##25,802##$##26,347######$##82,803##$##302,020 2021################################ Manufactured products:################################ Industrial and commercial##$##22,184##$##—##$##159##$##—##$##—######$##—##$##22,343 Building####19,604####—####—####—####—########—####19,604 Consumer####18,540####—####—####—####—########—####18,540 Grocery and convenience store distribution####—####31,245####—####—####—########—####31,245 Food and beverage distribution####—####17,332####—####—####—########—####17,332 Auto sales####—####—####9,966####—####—########—####9,966 Other retail and wholesale distribution####2,997####—####15,898####—####—########—####18,895 Service####1,486####751####4,123####23,120####5,583########—####35,063 Electricity and natural gas####—####—####—####—####18,264########—####18,264 Total####64,811####49,328####30,146####23,120####23,847########—####191,252 Other revenues####3,766####122####4,601####57####1,205########75,182####84,933 ##$##68,577##$##49,450##$##34,747##$##23,177##$##25,052######$##75,182##$##276,185


BRK.A Notes to Consolidated Financial Statements (23)Revenues from contracts with customers (24)Pension plans

A summary of the transaction price allocated to the significant unsatisfied remaining performance obligations related to contracts with expected durations exceeding one year as of December 31, 2023 and the timing of when the performance obligations are expected to be satisfied follows (in millions). ####Less than 12 months####Greater than 12 months####Total Electricity, natural gas and fuel##$##3,039##$##20,019##$##23,058 Other sales and service contracts####3,163####5,181####8,344


Certain Berkshire subsidiaries sponsor defined benefit pension plans. Benefits under the plans are generally based on years of service and compensation or fixed benefit rates. Plan sponsors may make contributions to the plans to meet regulatory requirements and may also make discretionary contributions. Our net periodic pension expense for each of the three years ending December 31, 2023 was as follows (in millions). ####2023######2022######2021## Service cost##$##111####$##181####$##257## Interest cost####640######482######410## Expected return on plan assets####(785##)####(975##)####(1,008##) Other####2######156######203## Net periodic pension expense##$##(32##)##$##(156##)##$##(138##)


The projected benefit obligation (“PBO”) is the actuarial present value of benefits earned based upon service and compensation prior to the valuation date and, if applicable, includes assumptions regarding future compensation levels. Benefit obligations under qualified U.S. defined benefit pension plans are funded through assets held in trusts. Pension obligations under certain other plans are unfunded and the aggregate PBOs of such plans were $1.0 billion and $1.1 billion as of December 31, 2023 and 2022, respectively. The costs of certain BHE pension plans are expected to be recoverable through the regulated rate making process.


The funded status reflected in the Consolidated Balance Sheets at year end 2023 and 2022 and reconciliations of the changes in PBOs and plan assets related to BHE’s pension plans and all other pension plans for each of the two years ending December 31, 2023 follow (in millions). ##########2023##################2022######## ####BHE######Other######Total######BHE######Other######Total## PBOs#################################### Balance at the beginning of the year##$##3,215####$##9,523####$##12,738####$##4,780####$##14,012####$##18,792## Service cost####21######90######111######36######145######181## Interest cost####167######473######640######118######364######482## Benefits paid####(274##)####(578##)####(852##)####(250##)####(585##)####(835##) Settlements paid####—######(448##)####(448##)####(164##)####(678##)####(842##) Actuarial (gains) losses and other####140######438######578######(1,305##)####(3,735##)####(5,040##) Balance at the end of the year##$##3,269####$##9,498####$##12,767####$##3,215####$##9,523####$##12,738## Plan assets#################################### Balance at the beginning of the year##$##3,376####$##9,216####$##12,592####$##5,158####$##13,462####$##18,620## Employer contributions####27######118######145######29######133######162## Benefits paid####(274##)####(578##)####(852##)####(250##)####(585##)####(835##) Settlements paid####—######(448##)####(448##)####(164##)####(678##)####(842##) Actual return on plan assets####271######1,512######1,783######(1,162##)####(2,971##)####(4,133##) Other####71######88######159######(235##)####(145##)####(380##) Balance at the end of the year##$##3,471####$##9,908####$##13,379####$##3,376####$##9,216####$##12,592## Funded status – net (asset) liability##$##(202##)##$##(410##)##$##(612##)##$##(161##)##$##307####$##146##


BRK.A Notes to Consolidated Financial Statements (24)Pension plans

The funded status at December 31, 2023 reflected in assets was $1,823 million and in liabilities was $1,211 million. The funded status at December 31, 2022 included in assets was $1,510 million and in liabilities was $1,656 million.


The accumulated benefit obligation (“ABO”) is the actuarial present value of benefits earned based on service and compensation prior to the valuation date. The ABO was $12.3 billion at December 31, 2023 and $12.2 billion at December 31, 2022. Information for plans with PBOs and ABOs in excess of plan assets as of December 31, 2023 and 2022 follows (in millions). ####2023####2022 PBOs##$##5,679##$##6,422 Plan assets####4,469####4,766 ABOs####1,246####5,594 Plan assets####222####4,234


Weighted average assumptions used in determining PBOs and net periodic pension expense follow. ##2023####2022####2021## Discount rate applicable to PBOs##5.0##%##5.2##%##2.7##% Expected long-term rate of return on plan assets##6.0####5.9####6.1## Rate of compensation increase##2.6####2.5####2.6## Discount rate applicable to net periodic pension expense##5.3####2.9####2.4##


Pension benefit payments expected over the next ten years follow (in millions): 2024 – $895; 2025 – $886; 2026 – $885; 2027 – $896; 2028 – $885; and 2029 through 2033 – $4,434. We expect to contribute $118 million to the pension plans in 2024.


Fair value measurements of plan assets as of December 31, 2023 and 2022 follow (in millions). ##########Fair Value############Investments carried at net ####Total####Level 1######Level 2####Level 3####asset value December 31, 2023###################### Cash and cash equivalents##$##449##$##370####$##79##$##—##$##— Equity securities####8,487####7,808######543####136####— Fixed maturity securities####2,138####1,277######851####10####— Investment funds and other####2,305####342######272####42####1,649 ##$##13,379##$##9,797####$##1,745##$##188##$##1,649 December 31, 2022###################### Cash and cash equivalents##$##602##$##523####$##79##$##—##$##— Equity securities####7,673####7,112######321####240####— Fixed maturity securities####2,152####1,328######824####—####— Investment funds and other####2,165####198######394####42####1,531 ##$##12,592##$##9,161####$##1,618##$##282##$##1,531


See Note 21 for a discussion of fair value measurements. Plan assets are generally invested with the long-term objective of producing earnings to adequately cover expected benefit obligations, while assuming a prudent level of risk. Allocations may change due to changing market conditions and investment opportunities. The expected rates of return on plan assets reflect subjective assessments of expected long-term investment returns. Generally, past investment returns are not given significant consideration when establishing assumptions for expected long-term rates of return on plan assets. Actual experience will differ from the assumed rates of return.


A reconciliation of the pre-tax accumulated other comprehensive income (loss) of our defined benefit pension plans for each of the two years ending December 31, 2023 follows (in millions). ####2023######2022## Balance at the beginning of the year##$##(738##)##$##(485##) Amount included in net periodic pension expense####(12##)####123## Actuarial gains (losses) and other####589######(376##) Balance at the end of the year##$##(161##)##$##(738##)


BRK.A Notes to Consolidated Financial Statements (24)Pension plans (25)Accumulated other comprehensive income

Several of our subsidiaries also sponsor defined contribution retirement plans, such as 401(k) or profit-sharing plans. Employee contributions are subject to regulatory limitations and specific plan provisions. Several plans provide for employer matching contributions as specified in the plans and may provide for additional discretionary employer contributions. Our defined contribution plan expense was approximately $1.1 billion in 2023, $0.8 billion in 2022 and $1.0 billion in 2021.


A summary of the net changes in after-tax accumulated other comprehensive income attributable to Berkshire Hathaway shareholders for each of the three years ending December 31, 2023 follows (in millions). ####Unrealized gains (losses) on investments######Foreign currency translation######Long-duration insurance contracts######Defined benefit pension plans######Other######Total## Balance at December 31, 2020##$##536####$##(3,082##)##$##—####$##(1,645##)##$##(52##)##$##(4,243##) Adoption of ASU 2018-12####—######—######(5,751##)####—######—######(5,751##) Balance at January 1, 2021####536######(3,082##)####(5,751##)####(1,645##)####(52##)####(9,994##) Other comprehensive income####(167##)####(1,010##)####1,655######1,298######95######1,871## Balance at December 31, 2021####369######(4,092##)####(4,096##)####(347##)####43######(8,123##) Other comprehensive income####(556##)####(2,050##)####5,637######(205##)####245######3,071## Balance at December 31, 2022####(187##)####(6,142##)####1,541######(552##)####288######(5,052##) Other comprehensive income####377######749######(188##)####455######(104##)####1,289## Balance at December 31, 2023##$##190####$##(5,393##)##$##1,353####$##(97##)##$##184####$##(3,763##)


BRK.A Notes to Consolidated Financial Statements (26)Business segment data

Our operating businesses include a large and diverse group of insurance, manufacturing, service and retailing businesses. We organize our reportable business segments in a manner that reflects how management views those business activities. Certain businesses are grouped together for segment reporting based upon similar products or product lines, marketing, selling and distribution characteristics, even though those business units are operated under separate local management. We acquired control of PTC on January 31, 2023 and PTC is considered a reportable segment beginning February 1, 2023. In this presentation, statement of earnings and capital expenditures data of the PTC segment are for the eleven months ending December 31, 2023. Previously, our earnings from PTC were determined under the equity method and included in earnings from non-controlled businesses.