《伯克希尔·哈撒韦Berkshire Hathaway（BRK-A）2023年第一季度财报（英文版）（56页）.pdf》由会员分享，可在线阅读，更多相关《伯克希尔·哈撒韦Berkshire Hathaway（BRK-A）2023年第一季度财报（英文版）（56页）.pdf（56页珍藏版）》请在三个皮匠报告上搜索。

1、UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-Q(Mark One)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31,2023ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT

2、OF 1934 For the transition period from toCommission file number 001-14905BERKSHIRE HATHAWAY INC.(Exact name of registrant as specified in its charter)Delaware47-0813844(State or other jurisdiction of incorporation or organization)(I.R.S.Employer Identification Number)3555 Farnam Street,Omaha,Nebrask

3、a 68131(Address of principal executive office)(Zip Code)(402)346-1400(Registrants telephone number,including area code)(Former name,former address and former fiscal year,if changed since last report)Securities registered pursuant to Section 12(b)of the Act:Title of each class Trading Symbols Name of

4、 each exchange on which registered Class A Common StockClass B Common Stock1.300%Senior Notes due 20240.000%Senior Notes due 20251.125%Senior Notes due 20272.150%Senior Notes due 20281.500%Senior Notes due 20302.000%Senior Notes due 20341.625%Senior Notes due 20352.375%Senior Notes due 20390.500%Sen

5、ior Notes due 20412.625%Senior Notes due 2059BRK.ABRK.BBRK24BRK25BRK27BRK28BRK30BRK34BRK35BRK39BRK41BRK59New York Stock ExchangeNew York Stock ExchangeNew York Stock ExchangeNew York Stock ExchangeNew York Stock ExchangeNew York Stock ExchangeNew York Stock ExchangeNew York Stock ExchangeNew York St

6、ock ExchangeNew York Stock ExchangeNew York Stock ExchangeNew York Stock ExchangeIndicate by check mark whether the Registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the

7、registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405

8、of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes No Indicate by check mark whether the Registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,smaller reporting company,or an emerging gro

9、wth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company,”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filer Accelerated filerNon-accelerated filerSmaller reporting company Emerging growth company If an emerging gro

10、wth company,indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the Registrant is a shell company(as de

11、fined in Rule 12b-2 of the Exchange Act).Yes No Number of shares of common stock outstanding as of April 25,2023:Class A 585,848Class B 1,295,970,8611BERKSHIRE HATHAWAY INC.Page No.Part I Financial Information Item 1.Financial Statements Consolidated Balance SheetsMarch 31,2023 and December 31,20222

12、 Consolidated Statements of EarningsFirst Quarter 2023 and 20224 Consolidated Statements of Comprehensive IncomeFirst Quarter 2023 and 20225 Consolidated Statements of Changes in Shareholders EquityFirst Quarter 2023 and 20225 Consolidated Statements of Cash FlowsFirst Quarter 2023 and 20226 Notes t

13、o Consolidated Financial Statements7Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations28Item 3.Quantitative and Qualitative Disclosures About Market Risk47Item 4.Controls and Procedures47Part II Other Information 47Item 1.Legal Proceedings47Item 1A.Risk Facto

14、rs47Item 2.Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities48Item 3.Defaults Upon Senior Securities48Item 4.Mine Safety Disclosures48Item 5.Other Information48Item 6.Exhibits50Signature 50 2Part I Financial InformationItem 1.Financial Statements

15、BERKSHIRE HATHAWAY INC.and SubsidiariesCONSOLIDATED BALANCE SHEETS(dollars in millions)March 31,2023December 31,2022(Unaudited)ASSETSInsurance and Other:Cash and cash equivalents*$23,805$32,260Short-term investments in U.S.Treasury Bills103,86992,774Investments in fixed maturity securities22,56625,1

16、28Investments in equity securities328,161308,793Equity method investments26,40328,050Loans and finance receivables23,14423,208Other receivables45,67443,490Inventories25,49925,366Property,plant and equipment21,20821,113Equipment held for lease15,67415,584Goodwill50,99751,522Other intangible assets30,

17、00129,187Deferred charges-retroactive reinsurance9,6999,870Other19,72919,657 746,429726,002Railroad,Utilities and Energy:Cash and cash equivalents*2,9423,551Receivables6,8144,795Property,plant and equipment168,973160,268Goodwill32,50526,597Regulatory assets5,5575,062Other33,85222,190 250,643222,463$

18、997,072$948,465*Includes U.S.Treasury Bills with maturities of three months or less when purchased of$3.6 billion at March 31,2023 and$2.6 billion at December 31,2022.See accompanying Notes to Consolidated Financial Statements3BERKSHIRE HATHAWAY INC.and SubsidiariesCONSOLIDATED BALANCE SHEETS(dollar

19、s in millions)March 31,2023December 31,2022(Unaudited)LIABILITIES AND SHAREHOLDERS EQUITYInsurance and Other:Unpaid losses and loss adjustment expenses$107,957$107,472Unpaid losses and loss adjustment expenses under retroactive reinsurance contracts35,06335,415Unearned premiums30,35928,657Life,annui

20、ty and health insurance benefits19,93719,753Other policyholder liabilities11,23111,370Accounts payable,accruals and other liabilities32,84233,201Aircraft repurchase liabilities and unearned lease revenues7,0526,820Notes payable and other borrowings41,43646,538 285,877289,226Railroad,Utilities and En

21、ergy:Accounts payable,accruals and other liabilities19,68316,615Regulatory liabilities6,8587,369Notes payable and other borrowings82,18876,206 108,729100,190Income taxes,principally deferred86,20677,368Total liabilities480,812466,784Redeemable noncontrolling interests3,183Shareholders equity:Common

22、stock88Capital in excess of par value35,15635,167Accumulated other comprehensive income(4,976)(5,052)Retained earnings546,631511,127Treasury stock,at cost(72,265)(67,826)Berkshire Hathaway shareholders equity504,554473,424Noncontrolling interests8,5238,257Total shareholders equity513,077481,681$997,

23、072$948,465See accompanying Notes to Consolidated Financial Statements 4BERKSHIRE HATHAWAY INC.and SubsidiariesCONSOLIDATED STATEMENTS OF EARNINGS(dollars in millions except per share amounts)(Unaudited)First Quarter20232022Revenues:Insurance and Other:Insurance premiums earned$19,796$17,488Sales an

24、d service revenues38,38837,862Leasing revenues2,0441,672Interest,dividend and other investment income3,2291,862 63,45758,884Railroad,Utilities and Energy:Freight rail transportation revenues6,0015,944Utility and energy operating revenues14,9174,818Service revenues and other income1,0181,197 21,93611

25、,959Total revenues85,39370,843Investment and derivative contract gains(losses)34,758(1,978)Costs and expenses:Insurance and Other:Insurance losses and loss adjustment expenses14,22113,332Life,annuity and health insurance benefits7851,337Insurance underwriting expenses3,5872,604Cost of sales and serv

26、ices30,31929,785Cost of leasing1,4771,232Selling,general and administrative expenses5,6024,251Interest expense328264 56,31952,805Railroad,Utilities and Energy:Freight rail transportation expenses4,1613,925Utilities and energy cost of sales and other expenses13,8463,591Other expenses8711,156Interest

27、expense890770 19,7689,442Total costs and expenses76,08762,247Earnings before income taxes and equity method earnings44,0646,618Equity method earnings688339Earnings before income taxes44,7526,957Income tax expense8,9951,252Net earnings35,7575,705Earnings attributable to noncontrolling interests253125

28、Net earnings attributable to Berkshire Hathaway shareholders$35,504$5,580Net earnings per average equivalent Class A share$24,377$3,784Net earnings per average equivalent Class B share*$16.25$2.52Average equivalent Class A shares outstanding1,456,4381,474,703Average equivalent Class B shares outstan

29、ding2,184,657,1092,212,054,009*Class B shares are economically equivalent to one-fifteen-hundredth of a Class A share.Accordingly,net earnings per average equivalent Class B share outstanding is equal to one-fifteen-hundredth of the equivalent Class A amount.See Note 19.See accompanying Notes to Con

30、solidated Financial Statements 5BERKSHIRE HATHAWAY INC.and SubsidiariesCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(dollars in millions)(Unaudited)First Quarter20232022Net earnings$35,757$5,705Other comprehensive income:Unrealized gains(losses)on investments247(236)Applicable income taxes(53)51Fo

31、reign currency translation249(315)Applicable income taxes6(11)Long duration insurance contract discount rate changes(367)3,078Applicable income taxes76(659)Defined benefit pension plans5026Applicable income taxes(6)(5)Other,net(120)87Other comprehensive income,net822,016Comprehensive income35,8397,7

32、21Comprehensive income attributable to noncontrolling interests259122Comprehensive income attributable to Berkshire Hathaway shareholders$35,580$7,599CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY(dollars in millions)(Unaudited)Berkshire Hathaway shareholders equityCommon stockand capital

33、 inexcess of parvalueAccumulatedothercomprehensiveincomeRetainedearningsTreasurystockNon-controllinginterestsTotalFor the first quarter of 2023Balance at December 31,2022 as previously reported$35,175$(6,591)$511,602$(67,826)$8,257$480,617Adoption of ASU 2018-121,539(475)1,064Balance at December 31,

34、2022 as revised35,175(5,052)511,127(67,826)8,257481,681Net earnings35,50425335,757Other comprehensive income,net76682Acquisition of common stock(4,439)(4,439)Transactions with noncontrolling interests and other(11)7(4)Balance at March 31,2023$35,164$(4,976)$546,631$(72,265)$8,523$513,077 For the fir

35、st quarter of 2022Balance at December 31,2021 as originally reported$35,600$(4,027)$534,421$(59,795)$8,731$514,930Adoption of ASU 2018-12(4,096)(535)(4,631)Balance at December 31,2021 as revised35,600(8,123)533,886(59,795)8,731510,299Net earnings5,5801255,705Other comprehensive income,net2,019(3)2,0

36、16Acquisition of common stock(3,111)(3,111)Transactions with noncontrolling interests and other(6)(129)(135)Balance at March 31,2022$35,594$(6,104)$539,466$(62,906)$8,724$514,774See accompanying Notes to Consolidated Financial Statements6BERKSHIRE HATHAWAY INC.and SubsidiariesCONSOLIDATED STATEMENTS

37、 OF CASH FLOWS(dollars in millions)(Unaudited)First Quarter20232022Cash flows from operating activities:Net earnings$35,757$5,705Adjustments to reconcile net earnings to operating cash flows:Investment(gains)losses(34,758)1,735Depreciation and amortization3,0512,703Other(1,293)(960)Changes in operat

38、ing assets and liabilities:Unpaid losses and loss adjustment expenses22558Deferred charges-retroactive reinsurance172215Unearned premiums1,6861,912Receivables and originated loans(922)(3,536)Inventories(15)(1,842)Other assets(987)(328)Other liabilities(2,649)(165)Income taxes8,629829Net cash flows f

39、rom operating activities8,6936,826Cash flows from investing activities:Purchases of equity securities(2,873)(51,119)Sales of equity securities13,2839,724Purchases of U.S.Treasury Bills and fixed maturity securities(45,515)(58,746)Sales of U.S.Treasury Bills and fixed maturity securities12,98237,795R

40、edemptions and maturities of U.S.Treasury Bills and fixed maturity securities25,3646,571Acquisitions of businesses,net of cash acquired(7,629)(34)Purchases of property,plant and equipment and equipment held for lease(3,713)(3,090)Other182333Net cash flows from investing activities(7,919)(58,566)Cash

41、 flows from financing activities:Proceeds from borrowings of insurance and other businesses6,977Repayments of borrowings of insurance and other businesses(4,946)(614)Proceeds from borrowings of railroad,utilities and energy businesses405Repayments of borrowings of railroad,utilities and energy busin

42、esses(1,244)(395)Changes in short term borrowings,net1,098(183)Acquisition of treasury stock(4,450)(3,180)Other,principally transactions with noncontrolling interests(380)(367)Net cash flows from financing activities(9,922)2,643Effects of foreign currency exchange rate changes4753Increase(decrease)i

43、n cash and cash equivalents and restricted cash(9,101)(49,044)Cash and cash equivalents and restricted cash at beginning of year*36,39988,706Cash and cash equivalents and restricted cash at end of first quarter*$27,298$39,662*Cash and cash equivalents and restricted cash are comprised of:Beginning o

44、f yearInsurance and Other$32,260$85,319Railroad,Utilities and Energy3,5512,865Restricted cash included in other assets588522$36,399$88,706End of first quarterInsurance and Other$23,805$35,542Railroad,Utilities and Energy2,9423,571Restricted cash included in other assets551549$27,298$39,662See accomp

45、anying Notes to Consolidated Financial Statements 7BERKSHIRE HATHAWAY INC.and SubsidiariesNOTES TO CONSOLIDATED FINANCIAL STATEMENTSMarch 31,2023Note 1.General The accompanying unaudited Consolidated Financial Statements include the accounts of Berkshire Hathaway Inc.(“Berkshire”or“Company”)consolid

46、ated with the accounts of all its subsidiaries and affiliates in which Berkshire holds controlling financial interests as of the financial statement date.In these notes,the terms“us,”“we”or“our”refer to Berkshire and its consolidated subsidiaries.Reference is made to Berkshires most recently issued

47、Annual Report on Form 10-K(“Annual Report”),which includes information necessary or useful to understanding Berkshires businesses and financial statement presentations.Our significant accounting policies and practices were presented as Note 1 to the Consolidated Financial Statements included in the

48、Annual Report.Financial information in this Quarterly Report reflects all adjustments(consisting only of normal recurring adjustments)that are,in the opinion of management,necessary to a fair statement of results for the interim periods in accordance with accounting principles generally accepted in

49、the United States(“GAAP”).For a number of reasons,our results for interim periods are not normally indicative of results to be expected for the year.The timing and magnitude of catastrophe losses incurred by insurance subsidiaries and the estimation error inherent to the process of determining liabi

50、lities for unpaid losses of insurance subsidiaries can be more significant to results of interim periods than to results for a full year.Given the size of our equity security investment portfolio,changes in market prices and the related changes in unrealized gains and losses on equity securities wil

51、l produce significant volatility in our interim and annual earnings.In addition,the magnitude of gains and losses from the periodic revaluation of certain assets and liabilities denominated in foreign currencies and asset impairment charges may cause significant variations in periodic net earnings.T

52、o varying degrees,the consequences of the COVID-19 pandemic continue to affect our operating businesses.Significant government and private sector actions have been taken since 2020 to control the spread and mitigate the economic effects of the virus and its variants.The development of geopolitical c

53、onflicts,supply chain disruptions and government actions to slow inflation in recent years have produced varying effects on our operating businesses.The economic effects from these events over longer terms cannot be reasonably estimated at this time.Accordingly,significant estimates used in the prep

54、aration of our financial statements,including those associated with evaluations of certain long-lived assets,goodwill and other intangible assets for impairment,expected credit losses on amounts owed to us and the estimations of certain losses assumed under insurance and reinsurance contracts,may be

55、 subject to significant adjustments in future periods.Note 2.New accounting pronouncements We adopted Accounting Standards Update 2018-12“Targeted Improvements to the Accounting for Long Duration Contracts”(“ASU 2018-12”)as of January 1,2023,which modifies the accounting,reporting and disclosures re

56、lated to long duration insurance contracts and most significantly the measurement of our long duration life,annuity and health benefit liabilities.ASU 2018-12 was applied retrospectively to contracts in-force beginning as of January 1,2021(the“transition date”).The Consolidated Financial Statements

57、for 2022 and 2021 were revised to reflect the effects of the adoption of ASU 2018-12.As of the transition date,the after-tax impact of changes in cash flow assumptions were recorded in retained earnings and the after-tax effect of changes in discount rates assumptions were recorded in accumulated ot

58、her comprehensive income.The effects of the adoption of ASU 2018-12 on our Consolidated Financial Statements as of January 1,2021 and for the years ending December 31,2022 and 2021 are included in Part II,Item 5 of this Report.Beginning as of January 1,2021,the cash flow assumptions used in measurin

59、g benefit liabilities are reviewed at least annually,with the effects of assumption changes recorded in earnings.Further,the discount rate assumptions used in measuring benefit liabilities are revised each quarterly reporting period based on the prevailing observable upper-medium grade(generally con

60、sidered to be single A-rated credit ratings)corporate bond yields that reflect the duration characteristics and currency attributes of the liabilities,using interpolation for durations between the observable yields.Changes to benefits liabilities arising from changes in discount rate assumptions are

61、 recorded in other comprehensive income.In measuring benefit liabilities and amortizing capitalized acquisition costs under long duration insurance contracts,we generally aggregate contracts by issuance year.ASU 2018-12 also requires certain disclosures for long duration insurance liabilities.See No

62、te 16.8Notes to Consolidated Financial Statements(Continued)Note 2.New accounting pronouncements(Continued)The effects from adopting ASU 2018-12 on affected line items from our Consolidated Statement of Earnings and Comprehensive Income for the quarter ended March 31,2022 follows in millions,except

63、per share amounts.First Quarter 2022Previously reportedIncrease(decrease)As revisedRevenues:Insurance premiums earned$17,492$(4)$17,488Costs and expenses:Life,annuity and health insurance benefits1,323141,337Insurance underwriting expenses2,767(163)2,604Earnings before income taxes6,8121456,957Incom

64、e tax expense1,227251,252Net earnings5,5851205,705Net earnings attributable to Berkshire Hathaway shareholders$5,460$120$5,580Other comprehensive income:Foreign currency translation(316)1(315)Long duration insurance contracts2,4192,419Other comprehensive income,net(404)2,4202,016Comprehensive income

65、 attributable to Berkshire Hathaway shareholders$5,059$2,540$7,599Net earnings per average equivalent Class A share$3,702$82$3,784Net earnings per average equivalent Class B share$2.47$0.05$2.52Note 3.Significant business acquisitions Our long-held acquisition strategy is to acquire businesses that

66、have consistent earning power,good returns on equity and able and honest management.Financial results attributable to business acquisitions are included in our Consolidated Financial Statements beginning on their respective acquisition dates.On January 31,2023,we acquired an additional 41.4%interest

67、 in Pilot Travel Centers,LLC(“Pilot”)for approximately$8.2 billion.We previously owned a 38.6%interest in Pilot and accounted for that investment under the equity method.We now control Pilot for financial reporting purposes.We applied the equity method through the end of January 2023 and began conso

68、lidating Pilots financial statements in our Consolidated Financial Statements on February 1,2023.Pilot is headquartered in Knoxville,Tennessee and operates travel centers in North America(primarily under the names Pilot or Flying J)with more than 650 travel center locations across 43 U.S.states and

69、six Canadian provinces.Pilot also has over 150 retail locations in the U.S.and Canada where it sells diesel fuel through various arrangements with third party travel centers.Among its business activities,Pilot operates large wholesale fuel and fuel marketing platforms in the U.S.and operates a water

70、 hauling and disposal business in the oil fields sector.As Pilots most significant business activities include involve purchasing and selling fuel(energy)on a wholesale and retail basis,and engaging in other energy-related business activities,including oil field services,we have included Pilot withi

71、n the railroad,utilities and energy sections of our Consolidated Balance Sheet and Consolidated Statement of Earnings beginning February 1,2023.Pilots revenues and net earnings attributable to Berkshire shareholders included in Berkshires Consolidated Financial Statements for the two months ending M

72、arch 31,2023 were$9.5 billion and$83 million,respectively.Our equity method earnings from Pilot for the month of January 2023 were$105 million.In applying the acquisition method of accounting,we were required to remeasure our previously held 38.6%investment in Pilot to fair value.In the first quarte

73、r of 2023,we recognized a one-time,non-cash remeasurement gain of approximately$3.0 billion,representing the excess of the fair value of that interest over the carrying value under the equity method,as a component of investment gains(losses).9Notes to Consolidated Financial Statements(Continued)Note

74、 3.Significant business acquisitions(Continued)Under the terms of an agreement,the holder of the remaining noncontrolling interest in Pilot has the option to require us to redeem for cash,all or a portion of the interest beginning in 2024.The cash consideration will be based on Pilots future earning

75、s,cash and debt.We have concluded that the remaining Pilot noncontrolling interest represents a redeemable interest under GAAP and are presenting such interests between liabilities and shareholders equity in the Consolidated Balance Sheet.We valued the noncontrolling interest at fair value as of the

76、 acquisition date.Thereafter,we will increase or decrease the redeemable noncontrolling interest by the share of the earnings or losses attributable to the interest and will further adjust the balance,as appropriate,if the current estimated redemption value exceeds the carrying value.The preliminary

77、 values of the Pilot identified assets acquired,liabilities assumed and redeemable noncontrolling interests are summarized as follows(in millions).Valuations of certain assets and liabilities,including property plant and equipment,other intangible assets and goodwill,as of the acquisition date have

78、not been finalized at this time and are provisional.PilotProperty,plant and equipment$8,136Goodwill and other intangible assets13,347Other6,934Assets acquired$28,417Notes payable$5,876Other4,789Liabilities assumed10,665Noncontrolling interests,predominantly redeemable3,370Net assets$14,382On October

79、 19,2022,Berkshire acquired all of the outstanding common stock of Alleghany Corporation(“Alleghany”)for approximately$11.5 billion,which included the value of certain Alleghany equity awards,pursuant to a definitive agreement and plan of merger dated as of March 20,2022.Alleghany operates a group o

80、f property and casualty reinsurance and insurance businesses.It also owns a portfolio of non-financial businesses.A summary of the preliminary values of the Alleghany identified assets acquired and liabilities assumed as of October 19,2022 follows(in millions).Valuations of certain assets,such as in

81、tangible assets and goodwill,and certain liabilities as of the acquisition date have not been finalized at this time and are provisional.AlleghanyCash,cash equivalents and U.S.Treasury Bills$3,762Investments in fixed maturity and equity securities15,982Loans and other receivables5,650Goodwill and ot

82、her intangible assets6,559Other3,637Assets acquired$35,590Unpaid losses and loss adjustment expenses$15,080Unearned premiums3,536Notes payable2,169Other3,300Liabilities assumed24,085Net assets$11,505The following table sets forth certain unaudited pro forma consolidated earnings data for the three m

83、onths ended March 31,2022 as if the Alleghany and Pilot acquisitions were consummated on the same terms at the beginning of 2022(in millions,except per share amounts).March 31,2022Revenues$87,548Net earnings attributable to Berkshire Hathaway shareholders5,666Net earnings per equivalent Class A comm

84、on share3,84210Notes to Consolidated Financial Statements(Continued)Note 4.Investments in fixed maturity securities Investments in fixed maturity securities as of March 31,2023 and December 31,2022 are summarized by type below(in millions).AmortizedCostUnrealizedGainsUnrealizedLossesFairValueMarch 3

85、1,2023U.S.Treasury,U.S.government corporations and agencies$9,588$8$(191)$9,405Foreign governments11,18448(144)11,088Corporate bonds1,532263(4)1,791Other26124(3)282$22,565$343$(342)$22,566December 31,2022U.S.Treasury,U.S.government corporations and agencies$10,039$12$(249)$9,802Foreign governments10

86、,45450(177)10,327Corporate bonds1,945256(6)2,195Other2,73577(8)2,804$25,173$395$(440)$25,128The fair value of investments in U.S.Treasury securities as of March 31,2023 included approximately$8.8 billion of securities that mature in 2023 and 2024.As of March 31,2023,approximately 93%of our foreign g

87、overnment holdings were rated AA or higher by at least one of the major rating agencies.The amortized cost and estimated fair value of fixed maturity securities at March 31,2023 are summarized below by contractual maturity dates.Amounts are in millions.Actual maturities may differ from contractual m

88、aturities due to prepayment rights held by issuers.Due in oneyear or lessDue after one year throughfive yearsDue after five years throughten yearsDue afterten yearsMortgage-backedsecuritiesTotalAmortized cost$14,038$7,426$780$139$182$22,565Fair value13,8327,3701,01614919922,566Note 5.Investments in

89、equity securities Investments in equity securities as of March 31,2023 and December 31,2022 are summarized as follows(in millions).Cost BasisNet Unrealized GainsFair ValueMarch 31,2023*Banks,insurance and finance$24,023$41,292$65,315Consumer products40,003144,506184,509Commercial,industrial and othe

90、r57,31621,02178,337$121,342$206,819$328,161*Approximately 77%of the aggregate fair value was concentrated in five companies(American Express Company$25.0 billion;Apple Inc.$151.0 billion;Bank of America Corporation$29.5 billion;The Coca-Cola Company$24.8 billion and Chevron Corporation$21.6 billion)

91、.Cost BasisNet Unrealized GainsFair ValueDecember 31,2022*Banks,insurance and finance$25,893$43,663$69,556Consumer products40,508112,384152,892Commercial,industrial and other65,20921,13686,345$131,610$177,183$308,793*Approximately 75%of the aggregate fair value was concentrated in five companies(Ame

92、rican 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).11Notes to Consolidated Financial Statements(Continued)Note 5.Investments in equity securities(Continued)During 2022,we began

93、to acquire common stock of Occidental Petroleum Corporation(“Occidental”).Our aggregate voting interest in Occidental exceeded 20%on August 4,2022 and we adopted the equity method as of that date.See Note 6.We report our investments in Occidental Cumulative Perpetual Preferred Stock and Occidental c

94、ommon stock warrants at fair value as equity securities,as such interests are not in-substance common stock under GAAP and are not eligible for the equity method.As of March 31,2023,our investment in Occidental preferred stock had an aggregate liquidation value of approximately$9.5 billion.During Ma

95、rch of 2023,Occidental issued mandatory redemption notifications at a price of 110%of the liquidation value,plus accrued and unpaid dividends for$474 million of preferred stock liquidation value due to excess distributions by Occidental to its common stockholders,as defined under the agreement.The p

96、referred 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 preference,plus any accumulated and unpaid dividends.Our investment in Occidental warrants allows us to purchase up to 83.86 million

97、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 redemption of the preferred stock.As of March 31,2023,we owned 151.6 million shares of American Express Company(“American Express”)common stock represen

98、ting 20.4%of the American Express outstanding common stock.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 passiv

99、ity 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

100、 investment in American Express common stock and we continue to record our investment at fair value.Note 6.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

101、our investments in the common stock of The Kraft Heinz Company(“Kraft Heinz”)and Occidental.We own 26.5%of Kraft Heinz common stock and we own 23.5%of Occidental common stock,which excludes the potential effect of the exercise of the Occidental common stock warrants that are included in investments

102、in equity securities.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 explora

103、tion,development and production,and chemicals manufacturing businesses.Occidentals midstream businesses purchase,market,gather,process,transport and store various oil,natural gas,carbon dioxide and other products.Occidentals financial information is not available in time for concurrent reporting in

104、our Consolidated Financial Statements.Therefore,we report the equity method effects for Occidental on a one-quarter lag.Our earnings in the first quarter of 2023 included our share of Occidentals earnings from its fourth quarter of 2022.The common stock of Kraft Heinz and Occidental are publicly tra

105、ded.The fair values and carrying values of these investments in addition to the carrying values of our other significant equity method investments are summarized as follows(in millions).Carrying ValueFair ValueMarch 31,2023December 31,2022March 31,2023December 31,2022Kraft Heinz$13,033$12,937$12,585

106、$13,249Occidental12,92711,48413,21712,242Other4433,629$26,403$28,050Our other significant equity method investments included Pilot through January 31,2023.Beginning February 1,2023,we ceased accounting for Pilot under the equity method and began consolidating Pilot for financial reporting purposes.O

107、ur investment in Pilot under the equity method was$3.2 billion at December 31,2022.Other significant equity method investments also included our 50%interest in Berkadia Commercial Mortgage LLC(“Berkadia”)with Jefferies Financial Group Inc.(“Jefferies”)owning the other 50%interest.Berkadia provides c

108、apital solutions,investment sales advisory and mortgage servicing for multifamily and commercial real estate.Berkadias 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 u

109、s for one-half of any losses incurred under the policy.The carrying values of our investments in Kraft Heinz and Berkadia approximate our share of the net equity of each of these entities.The carrying value of our investment in Occidental common stock exceeded our share of its shareholders equity as

110、 of December 31,2022 by approximately$8 billion.Based upon the limited information available to us,we concluded the excess represents goodwill.12Notes to Consolidated Financial Statements(Continued)Note 6.Equity method investments(Continued)Our earnings and distributions received from equity method

111、investments are summarized in the table below(in millions).As previously indicated,we are reporting the equity method effects for Occidental on a one-quarter lag.Thus,the earnings we recorded in the first quarter of 2023 related to Occidentals earnings for the fourth quarter of 2022.Equity method ea

112、rnings attributable to Pilot were$105 million for the month ending January 31,2023 and$107 million for the first quarter of 2022.Equity in EarningsDistributions ReceivedFirst QuarterFirst Quarter2023202220232022Kraft Heinz$222$206$130$130Occidental37025Other961332$688$339$155$132Summarized consolida

113、ted financial information of Kraft Heinz follows(in millions).April 1,2023December 31,2022Assets$90,943$90,513Liabilities41,59041,643First Quarter20232022Sales$6,489$6,045Net earnings attributable to Kraft Heinz common shareholders836776Summarized consolidated financial information of Occidental fol

114、lows(in millions).December 31,2022Assets$72,609Liabilities42,524Quarter ending December 31,2022Total revenues and other income$8,326Net earnings attributable to Occidental common shareholders1,727Note 7.Investment and derivative contract gains(losses)Investment and derivative contract gains(losses)i

115、n the first quarter of 2023 and 2022 are summarized as follows(in millions).First Quarter20232022Investment gains(losses):Equity securities:Change in unrealized investment gains(losses)during the period on securities held at the end of the period$31,317$(1,775)Investment gains on securities sold dur

116、ing the period37089 31,687(1,686)Fixed maturity securities:Gross realized gains1246Gross realized losses(52)(49)Other2,999(6)Investment gains(losses)34,758(1,735)Derivative contract gains(losses)(243)$34,758$(1,978)13Notes to Consolidated Financial Statements(Continued)Note 7.Investment and derivati

117、ve contract gains(losses)(Continued)Equity securities gains and losses include unrealized gains and losses from changes in fair values during the period on equity securities we still own,as well as gains and losses on securities we sold during the period.As reflected in the Consolidated Statements o

118、f Cash Flows,we received proceeds from sales of equity securities of approximately$13.3 billion in the first quarter of 2023 and$9.7 billion in the first quarter of 2022.In the preceding table,investment gains and losses on equity securities sold during the period represent the difference between th

119、e sales proceeds and the fair value of the equity securities sold at the beginning of the applicable period or,if later,the purchase date.Taxable gains and losses on equity securities sold are generally the difference between the proceeds from sales and original cost.Equity securities sold produced

120、taxable gains of$2.2 billion in the first quarter of 2023 compared to taxable losses of$739 million in 2022.Other investment gains in the first quarter of 2023 included approximately$3 billion from the remeasurement of our pre-existing 38.6%interest in Pilot through the application of acquisition ac

121、counting under GAAP.See Note 3.As of March 31,2023,our exposure to losses in the future under our two outstanding equity index put option contracts is insignificant.Note 8.Loans and finance receivables Loans and finance receivables are summarized as follows(in millions).March 31,2023December 31,2022

122、Loans and finance receivables before allowances and discounts$24,629$24,664Allowances for credit losses(876)(856)Unamortized acquisition discounts and points(609)(600)$23,144$23,208Loans and finance receivables are principally manufactured home loans,and to a lesser extent,commercial loans and site-

123、built home loans.Reconciliations of the allowance for credit losses on loans and finance receivables for the first quarter of 2023 and 2022 follow(in millions).First Quarter20232022Balance at beginning of year$856$765Provision for credit losses3722Charge-offs,net of recoveries(17)(6)Balance at March

124、 31$876$781As of March 31,2023,substantially all manufactured and site-built home loans were evaluated collectively for impairment.As of March 31,2023,we considered approximately 97%of these loans to be current as to payment status.A summary of performing and non-performing home loans before discoun

125、ts and allowances by year of loan origination as of March 31,2023 follows(in millions).Origination Year 20232022202120202019PriorTotalPerforming$1,845$4,830$3,549$2,752$1,956$8,204$23,136Non-performing24111074781$1,847$4,834$3,560$2,762$1,963$8,251$23,217We are also a lender under commercial loan ag

126、reements.These loans had an aggregate principal value of approximately$1.4 billion at March 31,2023 and$1.9 billion at December 31,2022.The largest commercial loan is currently to Seritage Growth Properties,with an unpaid principal balance of$800 million at March 31,2023.Our commercial loans are gen

127、erally secured by mortgages on real estate properties or by other assets and substantially all of these loans are current as to payment status.14Notes to Consolidated Financial Statements(Continued)Note 9.Other receivables Other receivables are comprised of the following(in millions).Receivables of

128、the railroad,utilities and energy businesses at March 31,2023 included approximately$2.1 billion related to Pilot.March 31,2023December 31,2022Insurance and other:Insurance premiums receivable$19,212$18,395Reinsurance recoverables7,1917,106Trade receivables15,06914,510Other4,8714,154Allowances for c

129、redit losses(669)(675)$45,674$43,490Railroad,utilities and energy:Trade receivables$5,855$4,182Other1,112754Allowances for credit losses(153)(141)$6,814$4,795Provisions for credit losses in the first quarter with respect to receivables summarized above were$151 million in 2023 and$92 million in 2022

130、.Charge-offs,net of recoveries,in the first quarter were$149 million in 2023 and$95 million in 2022.Note 10.Inventories Inventories of our insurance and other businesses are comprised of the following(in millions).March 31,2023December 31,2022Raw materials$6,484$6,381Work in process and other3,3653,

131、464Finished manufactured goods5,9555,739Goods acquired for resale9,6959,782$25,499$25,366Inventories of our railroad,utilities and energy businesses are included in other assets and were approximately$4.4 billion at March 31,2023,of which approximately$2.2 billion was attributable to Pilot.Note 11.P

132、roperty,plant and equipment A summary of property,plant and equipment of our insurance and other businesses follows(in millions).March 31,2023December 31,2022Land,buildings and improvements$14,533$14,761Machinery and equipment27,19026,690Furniture,fixtures and other5,1934,847 46,91646,298Accumulated

133、 depreciation(25,708)(25,185)$21,208$21,11315Notes to Consolidated Financial Statements(Continued)Note 11.Property,plant and equipment(Continued)A summary of property,plant and equipment of railroad and utilities and energy businesses follows(in millions).The utility generation,transmission and dist

134、ribution systems and interstate natural gas pipeline assets are owned by regulated public utility and natural gas pipeline subsidiaries.Assets of Pilot are included in land,buildings,improvements and other within the utilities and energy section of the following table.March 31,2023December 31,2022Ra

135、ilroad:Land,track structure and other roadway$67,861$67,350Locomotives,freight cars and other equipment16,00316,031Construction in progress1,7731,743 85,63785,124Accumulated depreciation(18,334)(17,899)67,30367,225Utilities and energy:Utility generation,transmission and distribution systems93,12392,

136、759Interstate natural gas pipeline assets18,49218,328Independent power plants and other assets14,61014,650Land,buildings,improvements and other8,205Construction in progress6,2465,357 140,676131,094Accumulated depreciation(39,006)(38,051)101,67093,043$168,973$160,268Depreciation expense for the first

137、 three months of 2023 and 2022 is summarized below(in millions).First Quarter20232022Insurance and other$575$564Railroad,utilities and energy1,7391,542$2,314$2,106Note 12.Equipment held for lease Equipment held for lease includes railcars,aircraft and other equipment,including over-the-road trailers

138、,intermodal tank containers,cranes,storage units and furniture.Equipment held for lease is summarized below(in millions).March 31,2023December 31,2022Railcars$9,662$9,612Aircraft10,92810,667Other5,2685,212 25,85825,491Accumulated depreciation(10,184)(9,907)$15,674$15,584Depreciation expense for equi

139、pment held for lease in the first quarter was$308 million in 2023 and$294 million in 2022.Fixed and variable operating lease revenues for the first quarter of 2023 and 2022 are summarized below(in millions).First Quarter20232022Fixed lease revenue$1,417$1,188Variable lease revenue627484$2,044$1,6721

140、6Notes to Consolidated Financial Statements(Continued)Note 13.Goodwill and other intangible assets Reconciliations of the changes in the carrying value of goodwill for the first three months of 2023 and for the year ended December 31,2022 follow(in millions).March 31,2023December 31,2022Balance at b

141、eginning of year$78,119$73,875Business acquisitions6,1124,657Other,including foreign currency translation(729)(413)Balance at end of period*$83,502$78,119*Net of accumulated goodwill impairments of$11.0 billion as of March 31,2023 and December 31,2022.The gross carrying amounts and accumulated amort

142、ization of other intangible assets are summarized below(in millions).March 31,2023December 31,2022GrosscarryingamountAccumulatedamortizationNetcarryingvalueGrosscarryingamountAccumulatedamortizationNetcarryingvalueInsurance and other:Customer relationships$28,247$7,376$20,871$27,765$7,174$20,591Trad

143、emarks and trade names5,6058324,7735,6038224,781Patents and technology5,0103,8321,1784,9433,7481,195Other4,7751,5963,1794,1501,5302,620$43,637$13,636$30,001$42,461$13,274$29,187Railroad,utilities and energy:Customer relationships and contracts$6,214$612$5,602$1,507$541$966Trademarks and trade names2

144、,566442,52221739178Other6584761119042148$9,438$703$8,735$1,914$622$1,292Other intangible assets of the railroad,utilities and energy businesses are included in other assets.The net carrying value of such assets at March 31,2023 included$7.4 billion related to Pilot.Intangible asset amortization expe

145、nse in the first quarter was$429 million in 2023 and$303 million in 2022.Intangible assets with indefinite lives were$20.9 billion as of March 31,2023 and$18.3 billion as of December 31,2022 and primarily related to certain customer relationships and trademarks and trade names.17Notes to Consolidate

146、d Financial Statements(Continued)Note 14.Unpaid losses and loss adjustment expenses Our liabilities for unpaid losses and loss adjustment expenses(also referred to as“claim liabilities”)under property and casualty insurance and reinsurance contracts are based upon estimates of the ultimate claim cos

147、ts associated with claim occurrences as of the balance sheet date and include estimates for incurred-but-not-reported(“IBNR”)claims.A reconciliation of the changes in claim liabilities,excluding liabilities under retroactive reinsurance contracts(see Note 15),for each of the three-month periods endi

148、ng March 31,2023 and 2022 follows(in millions).20232022Balances at beginning of year:Gross liabilities$107,472$86,664Reinsurance recoverable on unpaid losses(5,025)(2,960)Net liabilities102,44783,704Incurred losses and loss adjustment expenses:Current accident year14,77613,375Prior accident years(74

149、0)(251)Total14,03613,124Paid losses and loss adjustment expenses:Current accident year(3,841)(3,908)Prior accident years(9,747)(8,091)Total(13,588)(11,999)Foreign currency effect93(106)Balances at March 31:Net liabilities102,98884,723Reinsurance recoverable on unpaid losses4,9692,944Gross liabilitie

150、s$107,957$87,667Incurred losses and loss adjustment expenses shown in the preceding table were recorded in earnings and 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 ad

151、justment expenses are net of reinsurance recoveries.In the first quarter,we recorded net reductions of estimated ultimate liabilities for prior accident years of$740 million in 2023 and$251 million in 2022,which produced corresponding reductions in incurred losses and loss adjustment expenses in tho

152、se periods.These reductions,as percentages of the net liabilities at the beginning of each year,were 0.7%in 2023 and 0.3%in 2022.We reduced estimated ultimate liabilities for prior accident years of primary insurance businesses in the first quarter by$379 million in 2023 and$114 million in 2022.In 2

153、023,the reductions were driven by private passenger auto claims,whereas the decreases in 2022 were primarily attributable to private passenger auto,medical professional liability and workers compensation claims,partly offset by increases with respect to other casualty claims.In the first quarter,est

154、imated ultimate liabilities for prior accident years of property and casualty reinsurance businesses were reduced$361 million in 2023 and$137 million in 2022.18Notes to Consolidated Financial Statements(Continued)Note 15.Retroactive reinsurance contracts Retroactive reinsurance policies provide inde

155、mnification 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.Claims payments may commence immediately after the contract date or,when applicable,after a contractual retention amount

156、has been reached.Reconciliations of the changes in estimated liabilities for retroactive reinsurance unpaid losses and loss adjustment expenses and incurred losses and loss adjustment expenses to the amounts recorded in the Consolidated Statements of Earnings for each of the three-month periods ende

157、d March 31,2023 and 2022 follow(in millions).20232022Balances at beginning of year$35,415$37,855Incurred losses and loss adjustment expenses:Current year contractsPrior years contracts14(7)Total14(7)Paid losses and loss adjustment expenses(372)(547)Foreign currency effect6(5)Balances at March 31$35,

158、063$37,296Incurred losses and loss adjustment expenses above$14$(7)Deferred charge amortization and adjustments171215Incurred losses and loss adjustment expenses included in the Consolidated Statements of Earnings$185$208In the preceding table,classifications of incurred losses and loss adjustment e

159、xpenses are based on the inception dates of the contracts,which reflect when our exposure to losses began.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 ar

160、ising from the changes in estimated timing and amount of future loss payments.Unamortized deferred charges related to retroactive reinsurance contracts were$9.7 billion at March 31,2023 and$10.4 billion at March 31,2022.Note 16.Long duration insurance contractsWe write periodic payment annuity and l

161、ife and health insurance contracts.A summary of the impacts of adopting ASU 2018-12 on our periodic payment annuity and life and health insurance benefits liabilities as of the January 1,2021 transition date follows in millions.Periodic paymentannuitiesLife and healthTotalBalance at December 31,2020

162、,as previously reported$10,974$10,642$21,616Reclassifications to other policyholder liabilities(286)(929)(1,215)Balance at December 31,2020 after reclassifications10,6889,71320,401Change in discount rate assumptions6,5531,4478,000Change in cash flow assumptions(117)552435Balance as of January 1,2021

163、$17,124$11,712$28,836The reclassifications to other policyholder liabilities are primarily related to certain liabilities arising under our variable annuity guarantee reinsurance contracts.These liabilities are not classified as life,annuity and health insurance benefits liabilities under ASU 2018-1

164、2.A summary of our life,annuity and health insurance benefits liabilities as of March 31,2023 and 2022,disaggregated for our two primary product categories,periodic payment annuities and life and health insurance,follows(in millions).Other liabilities primarily consist of incurred-but-not-reported c

165、laims and claims in the course of settlement.March 31,20232022Periodic payment annuities$11,174$13,867Life and health5,6336,792Other liabilities3,1303,524$19,937$24,18319Notes to Consolidated Financial Statements(Continued)Note 16.Long duration insurance contracts(Continued)Reconciliations of our pe

166、riodic payment annuity and life and health insurance benefits liabilities for the first three months of 2023 and 2022 follow(in millions).The information reflects the changes in discounted present values of expected future policy benefits and expected future net premiums.In this context,net premiums

167、 represent the portion of expected gross premiums that are required to provide for future policy benefits and variable expenses.Periodic payment annuitiesLife and health2023202220232022Expected future policy benefits:Balance at beginning of period$10,640$16,153$52,008$63,648Balance at beginning of p

168、eriod at original discount rate11,54911,26163,58460,133Impact of cash flow assumption changes(1)486Effect of actual from expected results11(519)90Change in benefits,net(116)43(747)(517)Interest accrual133135425404Foreign currency effect19(23)47(167)Ending balance at original discount rate11,58611,41

169、762,78960,429Effect of changes in discount rate assumptions(412)2,450(12,169)(2,386)Expected future policy benefits at March 31$11,174$13,867$50,620$58,043Expected future net premiums:Balance at beginning of period$46,129$55,960Balance at beginning of period at original discount rate56,53553,277Impa

170、ct of cash flow assumption changes2458Effect of actual from expected results(413)22Change in premiums,net(660)(357)Interest accrual371351Foreign currency effect47(184)Ending balance at original discount rate55,88253,567Effect of changes in discount rate assumptions(10,895)(2,316)Expected future net

171、premiums at March 31$44,987$51,251Liability for future policy benefits at March 31$11,174$13,867$5,633$6,792Reinsurance recoverables(1,565)(1,857)Liability for future policy benefits at March 31,net of reinsurance recoverables$11,174$13,867$4,068$4,935The undiscounted and discounted expected future

172、gross premiums to be collected and undiscounted expected future benefits for periodic payment annuities and life and health insurance as of March 31,2023 and 2022 are summarized below(in millions).Undiscounted expected future gross premiumsDiscounted expected future gross premiumsUndiscounted expect

173、ed future benefits202320222023202220232022Periodic payment annuities$31,244$30,647Life and health107,831105,43364,42163,904102,881100,529Gross premiums earned on long duration contracts are included in insurance premiums earned and interest expense associated with long duration insurance contracts i

174、s included as a component of life,annuity and health benefits expenses in our Consolidated Statements of Earnings.Gross premiums earned and interest expense for the first three months of 2023 and 2022 were as follows(in millions).Gross PremiumsInterest Expense2023202220232022Periodic payment annuiti

175、es$169$133$135Life and health1,0041,143545320Notes to Consolidated Financial Statements(Continued)Note 16.Long duration insurance contracts(Continued)The weighted average current discount rates and interest accretion rates established at contract inception for the periodic payment annuities and life

176、 and health insurance are summarized below.March 31,20232022Periodic payment annuitiesWeighted average discount rate5.0%3.6%Weighted average accretion rate4.8%4.9%Weighted average duration(in years)1820Life and healthWeighted average discount rate4.9%3.4%Weighted average accretion rate3.2%3.5%Weight

177、ed average duration(in years)1414Deferred policy acquisition costs for our long duration insurance contracts were$748 million at March 31,2023 and$631 million at March 31,2022.We also reinsure closed blocks of guaranteed minimum death and living benefits associated with variable annuity products,ref

178、erred to as market risk benefits.Such liabilities are included in other policyholder liabilities and are measured at estimated fair value under ASU 2018-12.Such liabilities were approximately$1.2 billion as of March 31,2023 and$1.25 billion as of December 31,2022.During the first quarter of 2023,we

179、reduced liability estimates by$65 million,for the effects of changes in securities markets,interest rates and other inputs used to estimate liabilities.Cash settlements during the first quarter of 2023 were insignificant.Note 17.Notes payable and other borrowings Notes payable and other borrowings o

180、f our insurance and other businesses are summarized below(in millions).The weighted average interest rates and maturity date ranges are based on borrowings as of March 31,2023.WeightedAverageInterest RateMarch 31,2023December 31,2022Insurance and other:Berkshire Hathaway Inc.(“Berkshire”):U.S.Dollar

181、 denominated due 2025-20473.5%$3,733$6,231Euro denominated due 2024-20411.1%6,0297,344Japanese Yen denominated due 2023-20600.7%7,7167,818Berkshire Hathaway Finance Corporation(“BHFC”):U.S.Dollar denominated due 2027-20523.6%14,45914,458Great Britain Pound denominated due 2039-20592.5%2,1222,078Euro

182、 denominated due 2030-20341.8%1,3491,332Other subsidiary borrowings due 2023-20514.7%4,9245,967Subsidiary short-term borrowings6.3%1,1041,310$41,436$46,53821Notes to Consolidated Financial Statements(Continued)Note 17.Notes payable and other borrowings(Continued)In the first quarter of 2023,Berkshir

183、e repaid approximately$3.9 billion of maturing senior notes.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.In April 2023,Berkshire

184、issued 164.4 billion(approximately$1.2 billion)of senior notes and repaid 56.3 billion of maturing senior notes.BHFC borrowings are fully and unconditionally guaranteed by Berkshire.Berkshire also guarantees certain debt of other subsidiaries,aggregating approximately$2.7 billion at March 31,2023.Ge

185、nerally,Berkshires guarantee of a subsidiarys 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 1,0

186、29 billion par at March 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 are recorded in earnings as a component of selling,general and administrative expenses.Changes in the exchange rates produce

187、d pre-tax losses of$26 million in the first quarter of 2023 and pre-tax gains of$716 million in the first quarter of 2022.Notes payable and other borrowings of our railroad,utilities and energy businesses are summarized below(in millions).The weighted average interest rates and maturity date ranges

188、are based on borrowings as of March 31,2023.WeightedAverageInterest RateMarch 31,2023December 31,2022Railroad,utilities and energy:Berkshire Hathaway Energy Company(“BHE”)and subsidiaries:BHE senior unsecured debt due 2023-20534.4%$13,597$13,996Subsidiary and other debt due 2023-20644.3%37,55337,639

189、Short-term borrowings5.6%1,8191,119Pilot Travel Centers(“Pilot”)and subsidiaries:Pilot borrowings due 2023-20286.6%5,878Short-term borrowings6.2%594Burlington Northern Santa Fe(“BNSF”)and subsidiaries due 2023-20974.6%22,74723,452$82,188$76,206BHE subsidiary debt represents amounts issued pursuant t

190、o 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 cove

191、rage ratios and/or debt service coverage ratios.Pilots borrowings primarily represent syndicated loans.BNSFs borrowings are primarily senior unsecured debentures.As of March 31,2023,BNSF,Pilot,BHE and their subsidiaries were in compliance with all applicable debt covenants.Berkshire does not guarant

192、ee any debt,borrowings or lines of credit of BNSF,BHE,Pilot or their subsidiaries.Our subsidiaries have unused lines of credit and commercial paper capacity to support short-term borrowing programs and provide additional liquidity.Unused lines of credit were approximately$13.1 billion at March 31,20

193、23,which included approximately$9.0 billion related to BHE and its subsidiaries.22Notes to Consolidated Financial Statements(Continued)Note 18.Fair value measurements Our financial assets and liabilities are summarized below as of March 31,2023 and December 31,2022,with fair values shown according t

194、o 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.CarryingValueFair ValueQuotedPrices(

195、Level 1)SignificantOtherObservableInputs(Level 2)SignificantUnobservableInputs(Level 3)March 31,2023Investments in fixed maturity securities:U.S.Treasury,U.S.government corporations and agencies$9,405$9,405$9,370$35$Foreign governments11,08811,08810,738350Corporate bonds1,7911,7911,109682Other282282

196、282Investments in equity securities328,161328,161316,5501211,599Investments in Kraft Heinz&Occidental common stock25,96025,80225,802Loans and finance receivables23,14423,7361,24122,495Derivative contract assets(1)50450413234032Derivative contract liabilities(1)28728711109167Notes payable and other b

197、orrowings:Insurance and other41,43637,53437,50232Railroad,utilities and energy82,18877,74377,743December 31,2022Investments in fixed maturity securities:U.S.Treasury,U.S.government corporations and agencies$9,802$9,802$9,733$69$Foreign governments10,32710,3279,854473Corporate bonds2,1952,1951,546649

198、Other2,8042,8042,804Investments in equity securities308,793308,793296,610912,174Investments in Kraft Heinz&Occidental common stock24,42125,49125,491Loans and finance receivables23,20823,4281,51321,915Derivative contract assets(1)5895895647459Derivative contract liabilities(1)2422428122112Notes payab

199、le and other borrowings:Insurance and other46,53841,96141,061900Railroad,utilities and energy76,20667,65167,651(1)Assets are included in other assets and liabilities are included in accounts payable,accruals and other liabilities.23Notes to Consolidated Financial Statements(Continued)Note 18.Fair va

200、lue measurements(Continued)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

201、 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

202、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 observa

203、ble 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

204、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

205、 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

206、 fair value on a recurring basis with the use of significant unobservable inputs(Level 3)for the three months ended March 31,2023 and 2022 follow(in millions).Balance atbeginningof yearGains(losses)included in earningsAcquisitions,dispositionsandsettlementsTransfers out of Level 3Balance at March 31

207、Investments in equity securities:2023$12,169$(54)$(521)$11,594202211,48085512,335Quantitative information as of March 31,2023 for the significant assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs(Level 3)follows(dollars in

208、millions).FairValuePrincipal ValuationTechniquesUnobservableInputsWeightedAverageInvestments in equity securities:Preferred stock$9,602Discounted cash flowExpected duration6 years Discounts for liquidity and subordination372 bpsCommon stock warrants1,992Warrant pricing modelExpected duration6 years

209、Volatility40%Investments in equity securities in the preceding table include our investments in certain preferred stock 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 tr

210、ansfers 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 liquidity and subordination in liquidation.In valuing the

211、common stock warrants,we used a warrant valuation model.While most of the inputs to the model are observable,we made assumptions regarding the expected duration and volatility of the warrants.24Notes to Consolidated Financial Statements(Continued)Note 19.Common stock Changes in Berkshires issued,tre

212、asury and outstanding common stock during the first quarter of 2023 are shown in the table below.In addition to our common stock,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 auth

213、orized)IssuedTreasuryOutstandingIssuedTreasuryOutstandingBalances at December 31,2022651,450(59,886)591,5641,509,969,352(207,715,276)1,302,254,076Conversions of Class A to Class B common stock(359)(359)538,500538,500Treasury stock acquired(5,103)(5,103)(6,716,864)(6,716,864)Balances at March 31,2023

214、651,091(64,989)586,1021,510,507,852(214,432,140)1,296,075,712Each 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 v

215、oting 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

216、 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 1,450,152 shares outstanding as of March 31,2023 and 1,459,733 shares outstanding as of December 31,2022.Since we have two classes of common stock,

217、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

218、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 the average Class A shares outstanding.Berkshires

219、 common stock repurchase program permits Berkshire to repurchase its shares any time that Warren Buffett,Berkshires Chairman of the Board and Chief Executive Officer,and Charlie Munger,Vice Chairman of the Board,believe that the repurchase price is below Berkshires intrinsic value,conservatively det

220、ermined.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 Berkshires consolidated cash,cash eq

221、uivalents 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.Note 20.Income taxes Our consolidated effective income tax rates

222、 were 20.1%in the first quarter of 2023 compared to 18.0%in the first quarter of 2022.Our effective income tax rate normally reflects recurring benefits from dividends-received deductions applicable to investments in certain equity securities and production tax credits related to wind-powered electr

223、icity generation placed in service in the U.S.Our periodic effective income tax rate will also vary due to the changes in mix of pre-tax earnings,including investment gains or losses with respect to our investments in equity securities,the amount of non-deductible goodwill impairment charges and oth

224、er expenses and the underlying income tax rates applicable in the various taxing jurisdictions.25Notes to Consolidated Financial Statements(Continued)Note 21.Accumulated other comprehensive income A summary of the net changes in after-tax accumulated other comprehensive income attributable to Berksh

225、ire Hathaway shareholders for the three months ending March 31,2023 and 2022 follows(in millions).Unrealizedgains(losses)on investmentsForeign currency translationLong duration insurance contractsDefined benefit pension plansOtherTotalFirst quarter of 2023Beginning of year as previously reported$(18

226、7)$(6,140)$(552)$288$(6,591)Adoption of ASU 2018-12(2)1,5411,539Beginning balance as revised(187)(6,142)1,541(552)288(5,052)Other comprehensive income194244(291)44(115)76Balance at end of period$7$(5,898)$1,250$(508)$173$(4,976)First quarter of 2022 Beginning of year as previously reported$369$(4,09

227、2)$(347)$43$(4,027)Adoption of ASU 2018-12(4,096)(4,096)Beginning balance as revised369(4,092)(4,096)(347)43(8,123)Other comprehensive income(186)(314)2,41920802,019Balance at end of period$183$(4,406)$(1,677)$(327)$123$(6,104)Note 22.Supplemental cash flow information A summary of supplemental cash

228、 flow information is presented in the following table(in millions).First Quarter20232022Cash paid during the period for:Income taxes$312$336Interest:Insurance and other491365Railroad,utilities and energy799708Non-cash investing and financing activities:Liabilities assumed in connection with business

229、 acquisitions10,7479Note 23.Contingencies and commitments We are parties in a variety of legal actions that routinely arise out of the normal course of business,including legal actions seeking to establish liability directly through insurance contracts or indirectly through reinsurance contracts iss

230、ued by Berkshire subsidiaries.Plaintiffs occasionally seek punitive or exemplary damages.We do not believe that such normal and routine litigation will have a material effect on our financial condition or results of operations.Berkshire and certain of its subsidiaries are also involved in other kind

231、s of legal actions,some of which assert or may assert claims or seek to impose fines and penalties.We currently believe that any liability that may arise as a result of other pending legal actions will not have a material effect on our consolidated financial condition or results of operations.26Note

232、s to Consolidated Financial Statements(Continued)Note 24.Revenues from contracts with customers The following tables summarize customer contract revenues disaggregated by reportable segment and the source of the revenue for the first quarter of 2023 and 2022(in millions).Revenues from Pilot in 2023

233、are for the two months ending March 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.ManufacturingMcLaneServiceandRetailingBNSFBerkshireHa

234、thawayEnergyPilotInsurance,Corporateand otherTotalThree months ending March 31,2023Manufactured products:Industrial and commercial products$7,229$65$7,294Building products4,7584,758Consumer products4,0354,035Grocery and convenience store distribution7,7937,793Food and beverage distribution4,7624,762

235、Auto sales2,5652,565Other retail and wholesale distribution7994,2304225,451Service3542841,3265,985811218,781Electricity,natural gas and fuel5,2919,01514,306Total17,17512,8398,1865,9856,1029,45859,745Other revenues1,090421,716163373822,40925,648$18,265$12,881$9,902$6,001$6,439$9,496$22,409$85,393Thre

236、e months ending March 31,2022Manufactured products:Industrial and commercial products$5,932$49$5,981Building products5,4195,419Consumer products5,0935,093Grocery and convenience store distribution7,7067,706Food and beverage distribution4,5624,562Auto sales2,5272,527Other retail and wholesale distrib

237、ution7224,1754,897Service2642141,0065,9311,1128,527Electricity and natural gas4,7144,714Total17,43012,4827,7575,9315,82649,426Other revenues955321,3341318918,89421,417$18,385$12,514$9,091$5,944$6,015$18,894$70,843A summary of the transaction price allocated to the significant unsatisfied remaining p

238、erformance obligations relating to contracts with expected durations in excess of one year as of March 31,2023 and the timing of when the performance obligations are expected to be satisfied follows(in millions).Less than12 monthsGreater than12 monthsTotalElectricity,natural gas and fuel$3,331$20,14

239、6$23,477Other sales and service contracts3,3465,1348,48027Notes to Consolidated Financial Statements(Continued)Note 25.Business segment data Our operating businesses include a large and diverse group of insurance,manufacturing,service and retailing businesses.We organize our reportable business segm

240、ents 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 and marketing,selling and distribution characteristics,even though those business units are operated under separate

241、 local management.We acquired control of Pilot Travel Centers(“Pilot”)on January 31,2023.Pilots revenues,costs and earnings are included in our Consolidated Financial Statements and is considered a reportable segment beginning February 1,2023.In this presentation,the revenues and pre-tax earnings of

242、 the Pilot segment are for the two months ending March 31,2023.Previously,our earnings from Pilot were determined under the equity method and are included in earnings from equity method investments.Revenues and earnings before income taxes by segment for the first quarter of 2023 and 2022 were as fo

243、llows(in millions).First Quarter20232022Revenues of Operating BusinessesInsurance:Underwriting:GEICO$9,626$9,554Berkshire Hathaway Primary Group3,9613,118Berkshire Hathaway Reinsurance Group6,2094,816Investment income2,3921,364Total insurance22,18818,852BNSF6,0195,968Berkshire Hathaway Energy(“BHE”)

244、6,4516,020Pilot Travel Centers(“Pilot”)9,508Manufacturing18,28918,421McLane13,05912,515Service and retailing9,9319,115 85,44570,891Reconciliation of segments to consolidated amountCorporate,eliminations and other(52)(48)$85,393$70,843First Quarter20232022Earnings Before Income Taxes of Operating Bus

245、inessesInsurance:Underwriting:GEICO$703$(178)Berkshire Hathaway Primary Group26892Berkshire Hathaway Reinsurance Group231301Investment income2,3851,361Total insurance3,5871,576BNSF1,6491,809BHE223713Pilot136Manufacturing2,6112,824McLane11382Service and retailing1,2211,135 9,5408,139Reconciliation of

246、 segments to consolidated amountInvestment and derivative gains(losses)34,758(1,978)Interest expense,not allocated to segments(114)(104)Equity method investments688339Corporate,eliminations and other(120)561$44,752$6,95728Item 2.Managements Discussion and Analysis of Financial Condition and Results

247、of Operations Results of Operations Net earnings attributable to Berkshire Hathaway shareholders are disaggregated in the table that follows.Amounts are after deducting income taxes and exclude earnings attributable to noncontrolling interests(in millions).First Quarter20232022Insurance underwriting

248、$911$167Insurance investment income1,9691,170BNSF1,2471,371Berkshire Hathaway Energy(“BHE”)416775Pilot Travel Centers(“Pilot”)83Manufacturing,service and retailing2,9823,025Non-controlled businesses*568282Investment and derivative contract gains(losses)27,439(1,580)Other(111)370Net earnings attribut

249、able to Berkshire Hathaway shareholders$35,504$5,580*Includes certain businesses in which Berkshire had between a 20%and 50%ownership interest.Through our subsidiaries,we engage in numerous diverse business activities.We manage our operating businesses on an unusually decentralized basis.There are f

250、ew centralized or integrated business functions.Our senior corporate management team participates in and is ultimately responsible for significant capital allocation decisions,investment activities and the selection of the Chief Executive to head each of the operating businesses.The business segment

251、 data(Note 25 to the accompanying Consolidated Financial Statements)should be read in conjunction with this discussion.To varying degrees the consequences of the COVID-19 pandemic continue to affect our operating businesses.Government and private sector actions were taken beginning in 2020 intended

252、to control the spread and mitigate the adverse economic effects of the virus and its variants.The development of global geopolitical conflicts,supply chain disruptions and government actions to slow inflation in recent years has produced varying economic effects on our operating businesses.We cannot

253、 reliably predict the future economic effects of these events on our businesses.Insurance underwriting generated after-tax earnings of$911 million in the first quarter of 2023 and$167 million in the first quarter of 2022,which was revised from the previously reported amount of$47 million as a result

254、 of the adoption of ASU 2018-12 on January 1,2023.See Note 2 to the accompanying Consolidated Financial Statements.After-tax earnings from insurance investment income increased$799 million in the first quarter of 2023 compared to 2022,mostly attributable to increases in short-term interest rates.Aft

255、er-tax earnings of BNSF decreased 9.0%in the first quarter of 2023 compared to 2022.The comparative decrease was primarily attributable to lower overall freight volumes and higher fuel and other operating costs.After-tax earnings of BHE decreased 46.3%in the first quarter of 2023 compared to 2022.Th

256、e decrease reflected lower earnings from the U.S.regulated utilities,other energy businesses and real estate brokerage businesses.As disclosed in Note 3 to the accompanying Consolidated Financial Statements,we increased our ownership in Pilot from 38.6%to 80%on January 31,2023 and we are consolidati

257、ng Pilots results beginning February 1,2023.In 2022 and through January 31,2023,earnings from Pilot on our 38.6%interest were determined under the equity method and are included in non-controlled businesses in the preceding table.After-tax earnings from our manufacturing,service and retailing busine

258、sses decreased 1.4%in the first quarter of 2023 versus 2022.Earnings in the first quarter of 2023 were mixed among our various businesses.While results for certain industrial products manufacturers and services businesses improved versus 2022,the results of the building and consumer products busines

259、ses generally deteriorated.Investment and derivative contract gains(losses)in the first quarters of 2023 and 2022 predominantly derived from our investments in equity securities and included significant net unrealized gains and losses from market price changes.We believe that investment gains and lo

260、sses on investments in equity securities,whether realized from dispositions or unrealized from changes in market prices,are generally meaningless in understanding our reported quarterly or annual results or evaluating the economic performance of our operating businesses.These gains and losses have c

261、aused and will continue to cause significant volatility in our periodic earnings.Investment and derivative contract gains(losses)also included an after-tax non-cash remeasurement gain of$2.4 billion in the first quarter of 2023 related to our previously held 38.6%interest in Pilot through the applic

262、ation of the acquisition accounting method.29Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations Results of Operations(Continued)Other earnings included after-tax foreign exchange rate losses of$17 million in the first quarter of 2023 and after-tax gains of$52

263、2 million in the first quarter of 2022 related to the non-U.S.Dollar denominated debt issued by Berkshire and its U.S.-based finance subsidiary,Berkshire Hathaway Finance Corporation(“BHFC”).InsuranceUnderwriting Our management views our insurance businesses as possessing two distinct activities und

264、erwriting and investing.Underwriting decisions are the responsibility of the unit managers,while investing decisions are the responsibility of Berkshires Chairman and CEO,Warren E.Buffett,and Berkshires corporate investment managers.Accordingly,we evaluate performance of underwriting operations with

265、out any allocation of investment income or investment gains and losses.We consider investment income as an integral component of our aggregate insurance operating results.However,we consider investment gains and losses,whether realized or unrealized,as non-operating.We believe that such gains and lo

266、sses are not meaningful in understanding the quarterly or annual operating results of our insurance businesses.The timing and magnitude of catastrophe losses can produce significant volatility in our periodic underwriting results,particularly with respect to our reinsurance businesses.We currently c

267、onsider pre-tax incurred losses exceeding$150 million from a current year catastrophic event to be significant.Significant catastrophes in the first quarter were Cyclone Gabrielle and floods in New Zealand in 2023 and floods in Australia in 2022.Changes in estimates for unpaid losses and loss adjust

268、ment expenses,including amounts established for occurrences in prior years,can also significantly affect our periodic underwriting results.Unpaid loss estimates,including estimates under retroactive reinsurance contracts,were approximately$143 billion as of March 31,2023.Our periodic underwriting re

269、sults may also include significant foreign currency transaction gains and losses arising from the changes in the valuation of non-U.S.Dollar denominated liabilities of our U.S.-based insurance subsidiaries due to foreign currency exchange rate fluctuations.We provide primary insurance and reinsuranc

270、e products covering property and casualty risks,as well as life and health risks.Our insurance and reinsurance businesses are GEICO,Berkshire Hathaway Primary Group(“BH Primary”)and Berkshire Hathaway Reinsurance Group(“BHRG”).Berkshire acquired Alleghany Corporation(“Alleghany”)on October 19,2022.T

271、hrough its subsidiaries,Alleghany operates property and casualty insurance and reinsurance businesses,which are included in the BH Primary and BHRG underwriting results.We strive to produce pre-tax underwriting earnings(premiums earned less insurance losses/benefits incurred and underwriting expense

272、s)over the long term in all business categories,except for BHRGs retroactive reinsurance and periodic payment annuity contracts.Time-value-of-money is an important element in establishing prices for these contracts.We normally receive all premiums at the contract inception date,which are immediately

273、 available for investment.Ultimate claim payments can extend for decades and are expected to exceed premiums,producing underwriting losses over the claim settlement periods,primarily through deferred charge asset amortization and discounted liability accretion charges.Underwriting results of our ins

274、urance businesses are summarized below(dollars in millions).BHRGs pre-tax underwriting earnings for the first quarter of 2022 were$301 million,an increase from the previously reported amount of$156 million due to the impact of the retrospective adoption of ASU 2018-12 with respect to our long durati

275、on insurance contracts.First Quarter20232022Pre-tax underwriting earnings(loss):GEICO$703$(178)Berkshire Hathaway Primary Group26892Berkshire Hathaway Reinsurance Group231301Pre-tax underwriting earnings1,202215Income taxes and noncontrolling interests29148Net underwriting earnings$911$167Effective

276、income tax rate24.3%22.8%30Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations InsuranceUnderwriting(Continued)GEICO GEICO primarily writes private passenger automobile insurance,offering coverages to insureds in all 50 states and the District of Columbia.GEIC

277、O markets its policies mainly by direct response methods where most customers apply for coverage directly to the company via the Internet or over the telephone.A summary of GEICOs underwriting results follows(dollars in millions).First Quarter20232022Amount%Amount%Premiums written$10,060$10,265Premi

278、ums earned$9,626100.0$9,554100.0Losses and loss adjustment expenses7,99283.08,54489.4Underwriting expenses9319.71,18812.5Total losses and expenses8,92392.79,732101.9Pre-tax underwriting earnings(loss)$703$(178)GEICOs pre-tax underwriting earnings in the first quarter of 2023 reflected higher average

279、 premiums per auto policy,a reduction in advertising costs,as well as favorable prior accident year development.Premiums written in the first quarter of 2023 decreased$205 million(2.0%)compared to the first quarter of 2022.Premiums earned increased$72 million(0.8%)as average premiums per auto policy

280、 increased 15.2%due to rate increases,offset by a decrease in policies-in-force of 2.4 million(13.0%)since March 31,2022.GEICO significantly reduced advertising over that period,which contributed to the reduction in policies-in-force.Losses and loss adjustment expenses in the first quarter of 2023 d

281、ecreased$552 million(6.5%)compared to the first quarter of 2022.GEICOs ratio of losses and loss adjustment expenses to premiums earned in the first quarter of 2023 was 83.0%,a decrease of 6.4 percentage points compared to the first quarter of 2022,which reflected the impact of higher average premium

282、s per auto policy,favorable reserve development for prior accident years,the reduction in policies-in-force,and lower claims frequencies.Somewhat offsetting the favorable impact of these items were increases in claims severities.GEICOs reductions in the ultimate claim loss estimates for prior years

283、loss events were$338 million in the first quarter of 2023 and$92 million in the first quarter of 2022.The reduction in loss estimates for prior years events in 2023 reflected decreased estimates across several coverages.Claims frequencies in the first quarter of 2023 were lower for property damage(f

284、ive to six percent range)and collision(six to seven percent range),while claims frequencies increased for bodily injury(four to five percent range)and personal injury(three to four percent range).Average claims severities in the first quarter of 2023 were higher for property damage coverage(twenty-o

285、ne to twenty-two percent range),collision coverage(seven to eight percent range)and bodily injury coverage(eight to ten percent range).Underwriting expenses in the first quarter of 2023 were$931 million,a decrease of$257 million(21.6%)compared to 2022.GEICOs expense ratio(underwriting expenses to pr

286、emiums earned)in the first quarter of 2023 was 9.7%compared to 12.5%in 2022.These decreases were driven by the reduction in advertising expenses.Berkshire Hathaway Primary Group The Berkshire Hathaway Primary Group consists of several independently managed businesses that provide a variety of primar

287、ily commercial insurance solutions,including healthcare professional liability,workers compensation,automobile,general liability,property and specialty coverages for small,medium and large clients.BH Primarys larger insurers include Berkshire Hathaway Specialty Insurance(“BH Specialty”),Berkshire Ha

288、thaway Homestate Companies(“BHHC”),MedPro Group,Berkshire Hathaway GUARD Insurance Companies(“GUARD”),National Indemnity Company(“NICO Primary”),Berkshire Hathaway Direct Insurance Company(“BH Direct”)and U.S.Liability Insurance Company(“USLI”).This group also includes Alleghanys RSUI Group Inc.and

289、CapSpecialty,Inc.(“Alleghany Insurance”),beginning October 19,2022.31Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations InsuranceUnderwriting(Continued)Berkshire Hathaway Primary Group(Continued)A summary of BH Primary underwriting results follows(dollars in

290、millions).First Quarter20232022Amount%Amount%Premiums written$4,158$3,392Premiums earned$3,961100.0$3,118100.0Losses and loss adjustment expenses2,65667.12,27472.9Underwriting expenses1,03726.175224.1Total losses and expenses3,69393.23,02697.0Pre-tax underwriting earnings$268$92Premiums written incr

291、eased$766 million(22.6%)in the first quarter of 2023 compared to 2022.The increase was primarily due to the inclusion of Alleghany Insurance($570 million),as well as increased volumes from BH Specialty,BH Direct and USLI.Losses and loss adjustment expenses increased$382 million(16.8%)in the first qu

292、arter of 2023 compared to 2022,primarily due to the impact of Alleghany Insurance($233 million).BH Primarys loss ratio decreased 5.8 percentage points in the first quarter of 2023 compared to 2022,reflecting changes in business mix(including the impact of Alleghany Insurance),lower incurred losses f

293、rom current year catastrophes and increased reductions in loss estimates for prior years events.Incurred losses from significant catastrophes during the first quarter were$37 million in 2023 and$75 million in 2022.Incurred losses and loss adjustment expenses reflected net reductions in estimated ult

294、imate liabilities for prior years loss events of$41 million in the first quarter of 2023 and$22 million in the first quarter of 2022.BH Primary insurers write significant levels of workers compensation,commercial and professional liability insurance and the related claim costs may be subject to high

295、 severity and long claim-tails.Claims liabilities could be greater than anticipated due to a variety of factors.Underwriting expenses increased$285 million(37.9%)in the first quarter of 2023 compared to 2022.Alleghany Insurance underwriting expenses for the first quarter of 2023 were$139 million.Und

296、erwriting expenses as percentages of premiums earned increased 2.0 percentage points in the first quarter of 2023 compared to 2022.The increase was primarily attributable to changes in business mix.Berkshire Hathaway Reinsurance Group The Berkshire Hathaway Reinsurance Group(“BHRG”)offers excess-of-

297、loss and quota-share reinsurance coverages on property and casualty risks to insurers and reinsurers worldwide through several subsidiaries,led by National Indemnity Company(“NICO”),General Reinsurance Corporation,General Reinsurance AG and,beginning October 19,2022,Alleghanys Transatlantic Reinsura

298、nce Company and affiliates(“TransRe Group”).We also write life and health reinsurance coverages through General Re Life Corporation,General Reinsurance AG and Berkshire Hathaway Life Insurance Company of Nebraska(“BHLN”).We assume property and casualty risks under retroactive reinsurance contracts w

299、ritten through NICO and we write periodic payment annuity contracts through BHLN.A summary of BHRGs premiums and pre-tax underwriting results follows(in millions).Pre-tax underwriting losses in the first quarter of 2022 were increased$14 million for the life and health business and$16 million for th

300、e periodic payment annuity business,while earnings from the variable annuity business were increased$175 million from the previously reported amounts due to the retrospective adoption of ASU 2018-12.First QuarterPremiums earnedPre-tax underwritingearnings(loss)2023202220232022Property/casualty$5,149

301、$3,399$390$405Life/health1,0601,248137(26)Retroactive reinsurance(195)(190)Periodic payment annuity169(164)(119)Variable annuity63231$6,209$4,816$231$30132Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations InsuranceUnderwriting(Continued)Berkshire Hathaway Re

302、insurance Group(Continued)Property/casualty A summary of property/casualty reinsurance underwriting results follows(dollars in millions).First Quarter20232022Amount%Amount%Premiums written$6,268$4,386Premiums earned$5,149100.0$3,399100.0Losses and loss adjustment expenses3,38765.82,30767.9Underwriti

303、ng expenses1,37226.668720.2Total losses and expenses4,75992.42,99488.1Pre-tax underwriting earnings$390$405Premiums written in the first quarter of 2023 included$1.3 billion from the inclusion of TransRe Group.Otherwise,premiums written increased$542 million(12.4%)in the first quarter of 2023 compar

304、ed to 2022,primarily due to net increases in new and renewal property business and higher rates,partially offset by unfavorable foreign currency translation effects.Losses and loss adjustment expenses increased$1.1 billion(46.8%)in the first quarter of 2023 compared to 2022,primarily from the inclus

305、ion of TransRe Group($700 million).The loss ratio decreased 2.1 percentage points in the first quarter of 2023 compared to 2022.Losses incurred from significant catastrophes during the first quarter were$407 million in 2023 and$315 million in 2022.Losses and loss adjustment expenses included reducti

306、ons in estimated ultimate liabilities for prior years events of$361 million in the first quarter of 2023 and$137 million in the first quarter of 2022.The expense ratio increased 6.4 percentage points in the first quarter of 2023 compared to 2022,primarily attributable to foreign currency exchange ra

307、te effects and changes in business mix,including the impact of TransRe Group.Underwriting expenses in the first quarter of 2023 included$385 million related to TransRe Group.Underwriting expenses also included foreign currency exchange losses of$74 million in the first quarter of 2023 compared to ga

308、ins of$81 million in the first quarter of 2022,related to the remeasurement of certain non-U.S.Dollar denominated liabilities of our U.S.insurance subsidiaries.Life/health A summary of our life/health reinsurance underwriting results follows(dollars in millions).First Quarter20232022Amount%Amount%Pr

309、emiums written$1,061$1,243Premiums earned$1,060100.0$1,248100.0Life and health insurance benefits67864.01,06185.0Underwriting expenses24523.121317.1Total benefits and expenses92387.11,274102.1Pre-tax underwriting earnings(loss)$137$(26)Pre-tax underwriting earnings in the first quarter of 2023 refle

310、cted the impact of life insurance contract commutations in 2023,as well as lower claims incurred compared to the first quarter of 2022.The life insurance contract commutations drove most of the comparative decreases in premiums earned and life and health benefits incurred.Retroactive reinsurance Ret

311、roactive reinsurance underwriting results primarily derive from the runoff of contracts written several years ago.Pre-tax underwriting losses in each period derived from the amortization of deferred charges and changes in the estimated timing and amounts of future claim payments.Underwriting results

312、 also include foreign currency exchange gains and losses from the effects of changes in foreign currency exchange rates on non-U.S.Dollar denominated liabilities of our U.S.subsidiaries.Pre-tax underwriting losses were$195 million in the first quarter of 2023 and$190 million in the first quarter of

313、2022,primarily related to deferred charge amortization.The effects of foreign currency exchange were relatively insignificant in the first quarter of 2023 and 2022.33Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations InsuranceUnderwriting(Continued)Berkshire

314、Hathaway Reinsurance Group(Continued)Retroactive reinsurance(Continued)Gross unpaid losses assumed under retroactive reinsurance contracts were$35.1 billion at March 31,2023,a decline of$352 million since December 31,2022,primarily attributable to paid claims.Unamortized deferred charges related to

315、retroactive reinsurance contracts were$9.7 billion at March 31,2023,a decline of$171 million since December 31,2022.Deferred charge amortization will be included in underwriting earnings over the expected remaining claims settlement periods.Periodic payment annuityPeriodic payment annuity business i

316、s both price and demand sensitive and the supply of available business is affected by the timing of underlying legal claim settlements.Our volumes written may change rapidly due to changes in prices,which are affected by prevailing interest rates,the perceived risks and durations associated with the

317、 expected annuity payments,as well as the level of competition.Our periodic payment annuity contracts normally produce pre-tax underwriting losses from the recurring accretion of time-value discounted annuity liabilities,which includes discount accruals on liabilities of contracts without life conti

318、ngencies.Underwriting results also include gains or losses from foreign currency exchange rate changes on non-U.S.Dollar denominated liabilities of our U.S.subsidiaries.Pre-tax underwriting results included foreign currency losses of$19 million in the first quarter of 2023 and gains of$23 million in

319、 the first quarter of 2022.Pre-tax underwriting losses before foreign currency exchange effects were$145 million in the first quarter of 2023 and$142 million in the first quarter of 2022.Discounted liabilities were$15.1 billion at March 31,2023,which included$4.0 billion for contracts without life c

320、ontingencies.We adopted ASU 2018-12 on January 1,2023.ASU 2018-12 requires that the discount rates on contracts with life-contingent liabilities be adjusted quarterly based upon prevailing interest rates.The effects of discount rate changes are reflected in other comprehensive income.Variable annuit

321、y The run-off of our variable annuity guarantee reinsurance contracts produced pre-tax gains of$63 million in the first quarter of 2023 and$231 million in the first quarter of 2022.The results from these contracts are affected by changes in securities markets,interest rates and foreign currency exch

322、ange rates,which can be volatile,and from the periodic amortization of expected profit margins.InsuranceInvestment Income A summary of net investment income attributable to our insurance operations follows(dollars in millions).First QuarterPercentage20232022ChangeDividend income$1,244$1,1973.9%Inter

323、est and other investment income1,141164595.7Pre-tax net investment income2,3851,36175.2Income taxes and noncontrolling interests416191Net investment income$1,969$1,170Effective income tax rate17.4%14.1%Dividend income increased 3.9%in the first quarter of 2023 compared to 2022.Income in the first qu

324、arter included$8 million in 2023 and$16 million in 2022 from BHE preferred stock.Such amounts were deducted from earnings of the BHE segment.Dividend income varies from period to period due to changes in the investment portfolio and the frequency and timing of dividends from certain investees.Intere

325、st and other investment income increased$977 million in the first quarter of 2023 compared to the same period in 2022.The increase was primarily due to increases in short-term interest rates.We continue to hold substantial balances of cash,cash equivalents and short-term U.S.Treasury Bills.We contin

326、ue to believe that maintaining ample liquidity is paramount and we insist on safety over yield with respect to short-term investments.34Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations InsuranceInvestment Income(Continued)Invested assets of our insurance bu

327、sinesses derive from shareholder capital and net liabilities under insurance and reinsurance contracts or“float.”The major components of float are unpaid losses and loss adjustment expenses,including liabilities under retroactive reinsurance contracts,life,annuity and health benefit liabilities,unea

328、rned premiums and other liabilities due to policyholders,which are reduced by insurance premiums receivable,reinsurance receivables,deferred charges assumed under retroactive reinsurance contracts and deferred policy acquisition costs.Float approximated$165 billion at March 31,2023 and$164 billion a

329、t December 31,2022.Our combined insurance operations generated pre-tax underwriting gains of$1.2 billion in the first quarter of 2023 and,consequently,the average cost of float was negative.A summary of cash and investments held in our insurance businesses as of March 31,2023 and December 31,2022 fo

330、llows(in millions).March 31,2023December 31,2022Cash,cash equivalents and U.S.Treasury Bills$93,627$86,816Equity securities319,466298,934Fixed maturity securities22,43824,998Other2,5013,417$438,032$414,165Fixed maturity securities as of March 31,2023 were as follows(in millions).AmortizedCostUnreali

331、zedGains(Losses)CarryingValueU.S.Treasury,U.S.government corporations and agencies$9,578$(182)$9,396Foreign governments11,106(95)11,011Corporate bonds1,5252591,784Other22819247$22,437$1$22,438U.S.government obligations are rated AA+or Aaa by the major rating agencies.Approximately 93%of all foreign

332、government obligations were rated AA or higher by at least one of the major rating agencies as of March 31,2023.BNSFBurlington Northern Santa Fe,LLC(“BNSF”)operates one of the largest railroad systems in North America,with over 32,500 route miles of track in 28 states.BNSF also operates in three Can

333、adian provinces.BNSF classifies its major business groups by type of product shipped including consumer products,industrial products,agricultural products and coal.A summary of BNSFs earnings follows(dollars in millions).First Quarter20232022Railroad operating revenues$5,888$5,777Railroad operating expenses:Compensation and benefits1,3131,224Fuel964861Purchased services511499Depreciation and amort