Sentences and paragraphs of BRK-B's Risk Factors and MD&A, 10-K 2026-03-02 against 10-K 2025-02-24.
Each links to the text at sec.gov.
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RewordedRisk Factors
Data privacy and artificial intelligence laws and regulations have recently been enacted or are under development in various jurisdictions in the U.S. and throughout the world.
Read it in 10-K 2026-03-02 at sec.gov ↗
RewordedRisk Factors
Our utilities and energy businesses BHE also require requires significant amounts of capital to construct, operate and maintain generation, transmission and distribution systems to meet their customers’ needs and reliability criteria.
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RewordedRisk Factors
Further, a significant portion of costs of capital improvements may be funded through debt issued by BNSF and BHE and their subsidiaries. debt.
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RewordedRisk Factors
Political, economic, social or financial market instability or damage to or interference with our operating assets, customers or suppliers from cyber-attacks may result in business interruptions, lost revenues, higher commodity prices, disruption in fuel supplies, lower energy consumption, unstable markets, increased security, repair or repairs and other costs, including penalties and legal proceedings, or may materially adversely affect us in ways that cannot be predicted at this time.
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RewordedRisk Factors
These regulations address numerous aspects related to the security of personal information that is stored in our information systems, networks and facilities. facilities and the use of artificial intelligence tools.
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Quiet changesRisk Factors
Cyber-attacks could further adversely affect our ability to operate our facilities, information technology and business systems or could compromise confidential company, customer and employee information.
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Quiet changesRisk Factors
These initiatives impact all each of our businesses, albeit in varying ways.
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AddedMD&A
2025 2024 2023 Insurance – underwriting $ 7,258 $ 9,020 $ 5,428 Insurance – investment income 12,513 13,670 9,567 BNSF 5,476 5,031 5,087 Berkshire Hathaway Energy (“BHE”) 3,979 3,730 2,331 Manufacturing, service and retailing 13,647 13,072 13,362 Investment gains (losses) 30,737 41,558 58,873 Other-than-temporary impairment of investments in Kraft Heinz and Occidental (8,255) — — Other 1,613 2,914 1,575 Net earnings attributable to Berkshire shareholders $ 66,968 $ 88,995 $ 96,223
Read it in 10-K 2026-03-02 at sec.gov ↗
AddedMD&A
Insurance underwriting generated after-tax earnings of $7.3 billion in 2025, $9.0 billion in 2024 and $5.4 billion in 2023. The comparative earnings decline in 2025 reflected lower earnings from each of our underwriting groups. Overall underwriting results over the past three years were exceptional compared to results over longer periods. However, earnings may decline in the future from the ongoing impacts of competition within the industry and rising claim cost trends. After-tax losses from significant catastrophe events were approximately $850 million in 2025, $1.2 billion in 2024 and $725 million in 2023.
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AddedMD&A
After-tax earnings from insurance investment income declined $1.2 billion (8.5%) in 2025 versus 2024, reflecting lower interest income, attributable to lower interest rates, and dividend income. Insurance investment income increased $4.1 billion in 2024 compared to 2023, driven by higher interest income from short-term investments. Insurance investment income in 2025 was impacted by the effects of large capital distributions to Berkshire at the end of 2024. The income earned on investments (primarily U.S. Treasury Bills) held by Berkshire is included in “other” earnings in the preceding table.
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AddedMD&A
We recorded other-than-temporary impairment losses in 2025 on our investments in The Kraft Heinz Company (“Kraft Heinz”) and Occidental Petroleum Corporation (“Occidental”) common stock, which are accounted for under the equity method. See Note 5 to the accompanying Consolidated Financial Statements.
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AddedMD&A
Premiums written were slightly lower in 2025 compared to 2024. Premiums written increased in 2025 at MedPro (9.0%) (primarily from student health business), BHHC (7.4%) and NICO Primary (13.0%) (primarily commercial automobile business), BH Direct (15.8%) and USLI (4.9%). These increases were substantially offset by declines in written premiums at GUARD (32.6%) and RSUI (8.7%). GUARD’s decline was due to significant volume reductions across numerous product categories, including personal lines, business owners’ and workers’ compensation business, from initiatives to exit unprofitable lines and tightened underwriting standards. The decline at RSUI was primarily due to reduced property volumes.
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AddedMD&A
Income tax expense increased $82 million (5.1%) in 2025 compared to 2024. The effective income tax rate in 2025 declined versus 2024, primarily due to lower state income tax expenses arising from the impact of reductions in enacted rates during the second quarter of 2025.
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AddedMD&A
BHE’s income tax benefit includes significant production tax credits primarily from wind-powered electricity generation. On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted, introducing substantial revisions to energy-related U.S. federal tax policy. Among its provisions, the OBBBA accelerates the phase-out of clean electricity production and investment tax credits and establishes new sourcing requirements applicable to facilities commencing construction after December 31, 2025.
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AddedMD&A
Although the OBBBA did not have a material impact on BHE’s 2025 financial results, BHE’s future financial results and capital expenditures related to renewable energy, storage and technology neutral projects, including the potential impact on the economics and viability of such projects, may be affected by the combined effects of the OBBBA and broader macroeconomic and geopolitical conditions, including changes in international trade policies and tariff regimes. However, BHE currently does not believe these items will significantly impact its business in the near term.
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AddedMD&A
Corporate interest and other net earnings include BHE corporate interest expense and unallocated general and administrative expenses and income taxes.
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AddedMD&A
PCC’s revenues were $10.8 billion in 2025, an increase of 4.6% compared to 2024. Revenues from aerospace products increased 7.5% in 2025 compared to 2024, primarily attributable to growing demand. Revenues from power products in oil and gas markets and general industrial products declined, while revenues increased from industrial gas turbine and certain non-aerospace products. PCC’s pre-tax earnings increased 34.2% in 2025 compared to 2024, reflecting the aerospace sales increases, improved manufacturing and operating efficiencies and favorable changes in business mix. Earnings in 2025 also included insurance recoveries associated with a fire at a fasteners facility that occurred in the first quarter of 2025, which mitigated the negative earnings impact from the fire. Future sales and earnings growth will depend on successfully increasing production and expanding capacity, as necessary, to meet customer demand and managing through ongoing macroeconomic risks.
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AddedMD&A
Pre-tax earnings of our consumer products group increased 2.8% in 2025 compared to 2024. In the third quarter of 2025, Duracell determined certain of its U.S.-manufactured battery product components were eligible for refundable advanced manufacturing production income tax credits beginning in the 2023 tax year. Duracell recorded the eligible credits for the 2023, 2024 and 2025 periods in 2025. Under U.S. GAAP, these credits are reflected in pre-tax earnings, not as income tax expense. Before the impact of the production credits, pre-tax earnings of the consumer products group declined significantly in 2025 compared to 2024. The decline reflected lower earnings from Jazwares, due to a variety of factors, including lower sales volumes and increased costs from supply chain disruptions; Forest River, primarily attributable to lower gross margins from sales mix changes; and Duracell and Garan, which experienced lower gross margins and higher selling, general and administrative expenses as a percentage of revenues. These declines were partially offset by higher earnings from Brooks Sports attributable to increased sales and gross margins, partially offset by higher selling, general and administrative expenses.
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AddedMD&A
* Information for Pilot in 2023 is for the eleven months ended December 31. Pilot’s net earnings for the month ending January 31, 2023, were included in equity method earnings in other earnings on page K-54.
Read it in 10-K 2026-03-02 at sec.gov ↗
RemovedMD&A
* Includes certain businesses in which Berkshire had between a 20% and 50% ownership interest.
Read it in 10-K 2025-02-24 at sec.gov ↗
RemovedMD&A
Insurance underwriting generated after-tax earnings of $9.0 billion in 2024 and $5.4 billion in 2023 and losses of $30 million in 2022. Earnings in 2024 and 2023 benefited from significantly improved operating results at GEICO, which generated a significant loss in 2022. Underwriting results in 2024 also included estimated claims from Hurricanes Helene and Milton ($1.2 billion after-tax) and accruals in connection with a bankruptcy settlement agreement related to a non-insurance affiliate. Underwriting results in 2023 and 2022 included after-tax losses from significant catastrophe events of approximately $725 million and $2.4 billion, respectively. After-tax earnings from insurance investment income increased $4.1 billion in 2024 and $3.1 billion in 2023 compared to corresponding prior years, driven by higher interest income from short-term investments.
Read it in 10-K 2025-02-24 at sec.gov ↗
RemovedMD&A
2024 2023 2022 Pre-tax underwriting earnings (loss): GEICO $ 7,813 $ 3,635 $ (1,880) Berkshire Hathaway Primary Group 855 1,374 393 Berkshire Hathaway Reinsurance Group 2,737 1,904 1,465 Pre-tax underwriting earnings (loss) 11,405 6,913 (22) Income taxes and noncontrolling interests 2,385 1,485 8 Net underwriting earnings (loss) $ 9,020 $ 5,428 $ (30) Effective income tax rate 20.9% 21.5% *
Read it in 10-K 2025-02-24 at sec.gov ↗
RemovedMD&A
GEICO’s pre-tax underwriting earnings increase in 2023 reflected higher average premiums per auto policy, lower claims frequencies, more favorable development of prior accident years’ claims estimates and lower advertising costs. However, average claims severities increased in 2023 due to higher auto repair parts prices, labor costs and medical inflation. GEICO sought rate increases in numerous states in 2022 and 2023 in response to accelerating claims costs.
Read it in 10-K 2025-02-24 at sec.gov ↗
RemovedMD&A
Premiums written in 2023 increased 31.8% over 2022, reflecting the impact of the TransRe Group acquisition ($4.3 billion), net increases in new property business and higher rates. Losses and loss adjustment expenses increased $2.1 billion in 2023 versus 2022. The increase in 2023 reflected the TransRe Group acquisition ($2.6 billion), as well as a comparative reduction in losses from significant catastrophe events of $1.1 billion. Estimated ultimate liabilities for prior accident years were reduced $1.4 billion in 2023 and $1.6 billion in 2022.
Read it in 10-K 2025-02-24 at sec.gov ↗
RemovedMD&A
Periodic payment annuity business is price and demand sensitive and the supply of available business is affected by the timing of underlying legal claim settlements. In 2023 and 2024, premium rates for new business were at unacceptable levels and we wrote no new business in either year.
Read it in 10-K 2025-02-24 at sec.gov ↗
RemovedMD&A
* Includes significant production tax credits primarily from wind-powered electricity generation.
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RemovedMD&A
Marmon’s revenues were $12.5 billion in 2023, an increase of $1.2 billion (11.0%) compared to 2022. Business acquisitions represented substantially all of the comparative revenue increase. In addition, the Rail & Leasing, Water Technologies, Medical, Metal Services and Crane Services groups generated higher revenues, primarily due to higher volumes and pricing improvements. Revenues in 2023 of the Electrical group’s building wire business and the Metal Services and Plumbing & Refrigeration groups were negatively impacted by lower metals prices, while revenues of the Transportation Products group reflected declining demand, particularly in the second half of the year.
Read it in 10-K 2025-02-24 at sec.gov ↗
RemovedMD&A
Consumer products group revenues declined $1.5 billion (9.4%) in 2023 versus 2022. The decline reflected lower revenues at Forest River and our apparel and footwear operations, partially offset by the impact of the Jazwares acquisition, which contributed revenues of $1.3 billion in 2023 and $240 million in 2022.
Read it in 10-K 2025-02-24 at sec.gov ↗
RemovedMD&A
Forest River revenues declined 26.2% in 2023 compared to 2022, reflecting a 29.3% decline in unit sales and changes in sales mix. Forest River experienced strong recreational vehicle unit sales through the first half of 2022. Through most of 2023, sales of recreational vehicles declined significantly, attributable in part to the impact of rising interest rates, inflation and other macroeconomic conditions. The decline in recreational vehicle sales was partially offset by increased sales of bus and commercial vehicles.
Read it in 10-K 2025-02-24 at sec.gov ↗
RemovedMD&A
Revenues from TTI declined 2.7% in 2023 compared to 2022. Excluding the effects of business acquisitions in 2022 and 2023 and favorable foreign currency translation effects, revenues declined 5.2% in 2023 versus 2022. Customer orders slowed throughout 2023 in several regions, particularly in the Asia-Pacific region, attributable to elevated customer inventory levels and increasing price competition.
Read it in 10-K 2025-02-24 at sec.gov ↗
RemovedMD&A
Through January 31, 2023, we owned a 38.6% interest in Pilot, which we accounted for under the equity method. Our 38.6% proportionate share of Pilot’s net earnings for the month ending January 31, 2023 was included in equity method earnings in the accompanying Consolidated Statements of Earnings.
Read it in 10-K 2025-02-24 at sec.gov ↗
RewordedMD&A
Railroad compensation Compensation and benefits expenses increased $356 expense in 2025 decreased $338 million (6.5%) in 2024 (5.8%) compared to 2023, 2024, primarily due to a charge of $290 million charge in December 2024 related to a one-time payment included in the agreement with the SMART-TD labor union that was finalized in December 2024. agreement, as well as increased employee productivity, partially offset by wage inflation.
Read it in 10-K 2026-03-02 at sec.gov ↗
RewordedMD&A
The earnings increase in 2024 2025 reflected lower estimated wildfire loss accruals at PacifiCorp and higher earnings from natural gas pipelines, primarily due to reductions in PacifiCorp, reduced earnings attributable to noncontrolling interests, interests and the impact of real estate brokerage business litigation accruals in 2024, partially offset by lower earnings from the natural gas pipelines and other energy businesses.
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RewordedMD&A
The loss ratio decline increase in 2025 reflected the impact of higher average claims severities, partially offset by an increase in average earned premiums per auto policy policy, lower catastrophe losses and lower claims frequencies, partially offset by increases a comparative increase in average claims severities and less favorable development of prior accident years’ claims estimates.
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RewordedMD&A
(“RSUI and CapSpecialty,” acquired in October 2022), BH Primary’s insurers include Berkshire Hathaway Specialty Insurance Group (“BHSI”), RSUI, CapSpecialty, Berkshire Hathaway Homestate companies Group (“BHHC”), MedPro Group, MedPro, GUARD Insurance group of companies Companies (“GUARD”), National Indemnity Company NICO Primary Group (“NICO Primary”), Berkshire Hathaway Direct (“BH Direct”) and U.S.
Read it in 10-K 2026-03-02 at sec.gov ↗
RewordedMD&A
Pre-tax underwriting losses from the run-off of retroactive reinsurance, before foreign currency exchange gains and losses losses, were $950 million in 2025, $898 million in 2024, 2024 and $1.5 billion in 2023 2023, which reflected changes in estimated ultimate liabilities and $836 million in 2022. related deferred charges during each period.
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RewordedMD&A
The Railroad operating expenses were $15.3 billion in 2025, a decline of $591 million (3.7%) compared to 2024, and the ratio of railroad operating expenses to railroad operating revenues (“operating ratio”) in 2025 declined 0.4 2.5 percentage points to 68.0% in 2024 versus 2023. 65.5% from 2024.
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RewordedMD&A
(“PCC”)), specialty chemicals (The Lubrizol Corporation (“Lubrizol”)), metal cutting tools/systems (IMC International Metalworking Companies (“IMC”)), and Marmon, which consists of more than 100 autonomous manufacturing and service businesses, internally aggregated into eleven groups, and includes equipment leasing for the rail, intermodal tank container and mobile crane industries. Marmon Holdings, Inc.
Read it in 10-K 2026-03-02 at sec.gov ↗
RewordedMD&A
The building products group includes manufactured and site-built home construction and related lending and financial services (Clayton Homes), flooring (Shaw), insulation, roofing and engineered products (Johns Manville), bricks and masonry products (Acme Building Brands), paint and coatings (Benjamin Moore) and residential and commercial construction and engineering products and systems (MiTek). Homes).
Read it in 10-K 2026-03-02 at sec.gov ↗
RewordedMD&A
The Berkshire Hathaway Reinsurance Group BHRG offers excess-of-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”), the NICO, General Reinsurance Corporation, General Reinsurance AG Re and Transatlantic Reinsurance Company (“TransRe Group,” acquired in October 2022). TransRe Groups.
Read it in 10-K 2026-03-02 at sec.gov ↗
RewordedMD&A
Average Private passenger auto claims severities increased frequencies declined in 2025 versus 2024 for property damage and collision (two coverages (one to five three percent range) and range), while bodily injury coverages (eight coverage frequency increased (four to ten six percent range) compared to 2023. range).
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RewordedMD&A
Premiums written increased $3.1 $2.3 billion (7.7%) (5.3%) in 2024 2025 compared to 2023, reflecting an increase in average written premiums per auto policy of 7.8%, 2024, primarily attributable to rate increases, partially offset by a 0.5% decrease an increase in policies-in-force over the past year.
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RewordedMD&A
Railroad operating revenues declined 0.5% in 2024 compared to 2023, reflecting lower average Average revenue per car/unit of 6.6%, declined 0.5%, primarily attributable to lower fuel surcharge revenue and unfavorable business mix changes, mix, partially offset by a net volume increase of 6.5%. higher yield.
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Quiet changesMD&A
Dividend income varies from period to period due to changes in the investment portfolio and the amount, frequency and timing of dividends from certain investees.
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Quiet changesMD&A
Lubrizol’s pre-tax earnings increased 30.7% in 2024, primarily attributable to lower raw material materials costs, higher sales volumes and lower manufacturing costs, partially offset by the impact of lower selling prices and higher selling, general and administrative expenses.
Read it in 10-K 2026-03-02 at sec.gov ↗
