10-KPeriod: FY2015

BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2015

Filed February 29, 2016For Securities:BRK-BBRK-A

Summary

Berkshire Hathaway Inc. (BRK-B) reported strong financial performance for the fiscal year ended December 31, 2015. The company demonstrated significant growth across its diverse business segments, including insurance and reinsurance, railroad, utilities and energy, manufacturing, service, and retailing. Net earnings attributable to Berkshire Hathaway shareholders reached $24.08 billion, a notable increase from the previous year. This growth was driven by robust operating results from its core businesses, particularly the insurance and railroad segments, as well as favorable investment and derivative gains. The company maintained a strong financial position with consolidated shareholders' equity increasing to $255.6 billion, underpinned by substantial cash reserves and a well-capitalized insurance operation. Berkshire Hathaway's decentralized management structure continues to yield positive results, with operating businesses demonstrating solid performance. The company strategically deployed capital through acquisitions and organic growth initiatives. Notably, the acquisition of Van Tuyl Group (now Berkshire Hathaway Automotive) and AltaLink were significant contributors to revenue growth. Looking ahead, Berkshire Hathaway remains focused on long-term value creation, maintaining financial strength, and pursuing opportunities that align with its established investment philosophy.

Financial Highlights

29 data points
Beta

Revenue

$210.94B

Net Income

$24.08B

11.4% Net Margin

Total Assets

$552.26B

Cash & Equivalents

$67.16B

Free Cash Flow

$15.41B

Financial Statements
Beta
Revenue$210.94B
Operating Expenses$175.88B
Interest Expense$3.52B
Net Income$24.08B

Key Highlights

  • 1Net earnings attributable to Berkshire Hathaway shareholders were $24.08 billion for the year ended December 31, 2015.
  • 2Total revenues increased to $210.82 billion.
  • 3Consolidated shareholders' equity grew to $255.55 billion.
  • 4Insurance underwriting generated a net gain of $1.16 billion.
  • 5The railroad business (BNSF) saw a 9.8% increase in after-tax earnings.
  • 6Utilities and energy businesses experienced a 13.3% increase in after-tax earnings, aided by acquisitions.
  • 7The company maintained significant liquidity, with cash and cash equivalents of $61.2 billion in its insurance and other businesses.
  • 8Berkshire Hathaway acquired The Van Tuyl Group (now Berkshire Hathaway Automotive) for $4.1 billion and AltaLink, L.P. for approximately $2.7 billion.

Frequently Asked Questions

Berkshire Hathaway reported a strong financial performance in 2015, with net earnings attributable to shareholders reaching $24.08 billion, an increase from $19.87 billion in 2014. Total revenues grew to $210.82 billion, and consolidated shareholders' equity increased to $255.55 billion. The company's diverse operations, particularly insurance and railroad, contributed significantly to these results.

The insurance segment generated a net underwriting gain of $1.16 billion in 2015, a decrease from $1.69 billion in 2014, primarily due to higher claim costs at GEICO. However, investment income from the insurance operations was strong at $3.73 billion. GEICO experienced growth in premiums written and earned, but its loss ratio increased, impacting underwriting profit.

Berkshire Hathaway continued its strategy of strategic acquisitions and capital deployment. Key acquisitions in 2015 included The Van Tuyl Group (now Berkshire Hathaway Automotive) for $4.1 billion and AltaLink, L.P. for approximately $2.7 billion. The company also maintained a strong focus on capital preservation and did not repurchase any of its own shares under its repurchase program during 2015, keeping its cash and cash equivalent holdings above the $20 billion threshold.

Berkshire Hathaway's earnings are driven by a combination of its insurance underwriting profits, investment income generated from its vast insurance float, and the operating results of its non-insurance businesses, which include railroads, utilities, manufacturing, and retail operations. Investment and derivative gains/losses also contribute to earnings but can cause significant volatility.