Financial information

Berkshire Hathaway Inc. First Quarter 2022 Earnings Release

OMAHA, Neb.–(BUSINESS WIRE)–(BRK.A; BRK.B) – Berkshire’s operating results for the first quarters of 2022 and 2021 are summarized in the following paragraphs. However, we urge investors and journalists to read our 10-Q, which has been posted on www.berkshirehathaway.com. The limited information that follows in this press release is not sufficient to make an informed investment judgment..

Earnings for Berkshire Hathaway Inc. and its consolidated subsidiaries for the first quarters of 2022 and 2021 are summarized below. Earnings are shown on an after-tax basis. (Dollar amounts are in millions, except per share amounts).

first quarter

2022

2021

Net income attributable to Berkshire shareholders

$

5,460

$

11,711

Net profit includes:

Gains (losses) on investments and derivatives

(1,580

)

4,693

Operating profit

7,040

7,018

Net income attributable to Berkshire shareholders

$

5,460

$

11,711

Net earnings per average equivalent Class A share

$

3,702

$

7,638

Net earnings per average equivalent Class B share *

$

2.47

$

5.09

Average number of equivalent Class A shares outstanding

1,474,703

1,533,284

Average number of equivalent Class B shares outstanding

2,212,054,009

2,299,925,502

* Amounts per share are 1/1,500and of those indicated for class A.

Generally accepted accounting principles (“GAAP”) require us to include changes in unrealized gains/losses from our equity investments as a component of investment gains/losses in our statements of earnings. In the table above, investment gains (losses) include losses of approximately $771 million in the first quarter of 2022 and gains of approximately $2.8 billion in the first quarter of 2021 due to changes in the first quarters of 2022 and 2021 in the amount of gains that existed in our equity holdings. Investment gains (losses) also include post-tax realized losses on investment sales of $612 million in the first quarter of 2022 and post-tax realized gains on investment sales of $1,414 million in the first quarter of 2022. 2021.

The amount of investment gains (losses) in a given quarter is generally meaningless and provides net earnings per share figures that can be extremely misleading to investors who have little or no knowledge of the accounting rules.

An analysis of Berkshire’s operating profits follows (dollar amounts are in millions).

first quarter

2022

2021

Underwriting insurance

$

47

$

764

Investment insurance income

1,170

1,208

Railway

1,371

1,251

Utilities and energy

750

703

Manufacturing, service and retail businesses

3,025

2,619

Other

677

473

Operating profit

$

7,040

$

7,018

Approximately $3.2 billion was used to purchase Class A and Class B common stock during the first quarter of 2022. As of March 31, 2022, there were 1,470,875 Class A equivalent shares outstanding.

As of March 31, 2022, the insurance float (the net liabilities we bear under insurance contracts) was approximately $148 billion, an increase of approximately $1 billion since the end of the year 2021.

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures. Reconciliations of these measures to the most comparable GAAP figures under Regulation G are included herein.

Berkshire presents its results in the manner it believes to be most meaningful and useful, as well as transparent, to the investing public and other users of Berkshire’s financial information. This presentation includes the use of certain non-GAAP financial measures. In addition to the GAAP presentations of net income, Berkshire presents operating income defined as net income excluding investments and derivative gains/losses and impairments of goodwill and intangible assets.

Although the investment of insurance and reinsurance premiums to generate investment income and investment gains or losses is an integral part of Berkshire’s operations, the generation of investment gains or losses is independent of the process insurance underwriting. In addition, as previously described, under applicable GAAP accounting requirements, we are now required to include changes in unrealized gains/losses on our equity investments as a component of investment gains/losses in our statements of periodic results. In sum, investment gains/losses for a particular period are not indicative of a company’s quarterly performance.

About Berkshire

Berkshire Hathaway and its subsidiaries are engaged in a variety of business activities, including insurance and reinsurance, utilities and energy, rail freight, manufacturing, retail and services. The company’s common stock trades on the New York Stock Exchange under the trading symbols BRK.A and BRK.B.

Caution

Certain statements in this press release are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance, and actual results may differ materially from those anticipated.