Form 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-14905

BERKSHIRE HATHAWAY INC.

(Exact name of registrant as specified in its charter)

Delaware 47-0813844 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)

3555 Farnam Street, Omaha, Nebraska 68131

(Address of principal executive office)

(Zip Code)

(402) 346-1400

(Registrants telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate 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 and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No x

Number of shares of common stock outstanding as of April 23, 2015:

Class A  824,730 Class B  1,227,452,053

BERKSHIRE HATHAWAY INC.

1

Part I Financial Information

Item 1. Financial Statements

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(dollars in millions)

March 31,

2015 December 31,

2014 (Unaudited) ASSETS Insurance and Other: Cash and cash equivalents $ 58,198 $ 57,974 Investments: Fixed maturity securities 27,366 27,397 Equity securities 113,341 115,529 Other 15,208 16,346 Investments in H.J. Heinz Holding Corporation 11,493 11,660 Receivables 24,006 21,852 Inventories 11,681 10,236 Property, plant and equipment 15,161 14,153 Goodwill 37,284 34,959 Other 24,235 23,763 337,973 333,869 Railroad, Utilities and Energy: Cash and cash equivalents 3,522 3,001 Property, plant and equipment 115,500 115,054 Goodwill 24,261 24,418 Other 16,916 16,343 160,199 158,816 Finance and Financial Products: Cash and cash equivalents 1,991 2,294 Investments in equity and fixed maturity securities 1,273 1,299 Other investments 5,666 5,978 Loans and finance receivables 12,474 12,566 Property, plant and equipment and assets held for lease 8,079 8,037 Goodwill 1,334 1,337 Other 2,087 1,990 32,904 33,501 $531,076 $526,186 LIABILITIES AND SHAREHOLDERS EQUITY Insurance and Other: Losses and loss adjustment expenses $ 70,617 $ 71,477 Unearned premiums 13,531 11,944 Life, annuity and health insurance benefits 13,381 13,261 Accounts payable, accruals and other liabilities 23,456 23,307 Notes payable and other borrowings 14,529 11,894 135,514 131,883 Railroad, Utilities and Energy: Accounts payable, accruals and other liabilities 14,996 15,595 Notes payable and other borrowings 56,604 55,579 71,600 71,174 Finance and Financial Products: Accounts payable, accruals and other liabilities 1,349 1,321 Derivative contract liabilities 3,503 4,810 Notes payable and other borrowings 12,662 12,736 17,514 18,867 Income taxes, principally deferred 61,609 61,235 Total liabilities 286,237 283,159 Shareholders equity: Common stock 8 8 Capital in excess of par value 35,565 35,573 Accumulated other comprehensive income 38,864 42,732 Retained earnings 168,784 163,620 Treasury stock, at cost (1,763 ) (1,763 ) Berkshire Hathaway shareholders equity 241,458 240,170 Noncontrolling interests 3,381 2,857 Total shareholders equity 244,839 243,027 $531,076 $526,186

See accompanying Notes to Consolidated Financial Statements

2

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS

(dollars in millions except per share amounts)

First Quarter 2015 2014 (Unaudited) Revenues: Insurance and Other: Insurance premiums earned $ 9,540 $ 9,416 Sales and service revenues 24,941 22,328 Interest, dividend and other investment income 1,303 1,155 Investment gains/losses 96 1,059 35,880 33,958 Railroad, Utilities and Energy: Revenues 9,891 9,753 Finance and Financial Products: Sales and service revenues 1,222 1,096 Interest, dividend and other investment income 332 338 Investment gains/losses 1 72 Derivative gains/losses 1,318 236 2,873 1,742 48,644 45,453 Costs and expenses: Insurance and Other: Insurance losses and loss adjustment expenses 6,001 5,590 Life, annuity and health insurance benefits 1,180 1,210 Insurance underwriting expenses 1,612 1,901 Cost of sales and services 20,259 18,137 Selling, general and administrative expenses 3,078 2,888 Interest expense 144 98 32,274 29,824 Railroad, Utilities and Energy: Cost of sales and operating expenses 6,968 7,381 Interest expense 632 565 7,600 7,946 Finance and Financial Products: Cost of sales and services 659 589 Selling, general and administrative expenses 365 377 Interest expense 99 119 1,123 1,085 40,997 38,855 Earnings before income taxes 7,647 6,598 Income tax expense 2,414 1,825 Net earnings 5,233 4,773 Less: Earnings attributable to noncontrolling interests 69 68 Net earnings attributable to Berkshire Hathaway shareholders $ 5,164 $ 4,705 Average common shares outstanding * 1,642,951 1,644,059 Net earnings per share attributable to Berkshire Hathaway shareholders * $ 3,143 $ 2,862

* Average shares outstanding include average Class A common shares and average Class B common shares determined on an equivalent Class A common stock basis. Net earnings per common share attributable to Berkshire Hathaway shown above represents net earnings per equivalent Class A common share. Net earnings per Class B common share is equal to one-fifteen-hundredth (1/1,500) of such amount.

See accompanying Notes to Consolidated Financial Statements

3

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(dollars in millions)

First Quarter 2015 2014 (Unaudited) Net earnings $ 5,233 $ 4,773 Other comprehensive income: Net change in unrealized appreciation of investments (3,796 ) 2,591 Applicable income taxes 1,431 (898 ) Reclassification of investment appreciation in net earnings (91 ) (1,041 ) Applicable income taxes 32 364 Foreign currency translation (1,360 ) 26 Applicable income taxes (23 ) 7 Prior service cost and actuarial gains/losses of defined benefit pension plans 49 7 Applicable income taxes (15 )  Other, net (125 ) (4 ) Other comprehensive income, net (3,898 ) 1,052 Comprehensive income 1,335 5,825 Comprehensive income attributable to noncontrolling interests 39 96 Comprehensive income attributable to Berkshire Hathaway shareholders $ 1,296 $ 5,729

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY

(dollars in millions)

Berkshire Hathaway shareholders equity Total Common stock

and capital in

excess of par

value Accumulated

other

comprehensive

income Retained

earnings Treasury

stock Non-

controlling

interests Balance at December 31, 2013 $ 35,480 $ 44,025 $ 143,748 $ (1,363) $ 2,595 $ 224,485 Net earnings   4,705  68 4,773 Other comprehensive income, net  1,024   28 1,052 Issuance of common stock 35     35 Transactions with noncontrolling interests (42 )    (14 ) (56 ) Balance at March 31, 2014 $ 35,473 $ 45,049 $ 148,453 $ (1,363) $ 2,677 $ 230,289 Balance at December 31, 2014 $ 35,581 $ 42,732 $ 163,620 $ (1,763) $ 2,857 $ 243,027 Net earnings   5,164  69 5,233 Other comprehensive income, net  (3,868 )   (30 ) (3,898 ) Issuance of common stock 9     9 Transactions with noncontrolling interests (17 )    485 468 Balance at March 31, 2015 $ 35,573 $ 38,864 $ 168,784 $ (1,763) $ 3,381 $ 244,839

See accompanying Notes to Consolidated Financial Statements

4

BERKSHIRE HATHAWAY INC.

and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in millions)

First Quarter 2015 2014 (Unaudited) Cash flows from operating activities: Net earnings $ 5,233 $ 4,773 Adjustments to reconcile net earnings to operating cash flows: Investment gains/losses (97 ) (1,131 ) Depreciation and amortization 1,871 1,772 Other (66 ) (236 ) Changes in operating assets and liabilities before business acquisitions: Losses and loss adjustment expenses (114 ) 474 Deferred charges reinsurance assumed 139 (278 ) Unearned premiums 1,667 1,497 Receivables and originated loans (2,064 ) (2,415 ) Derivative contract assets and liabilities (1,307 ) (236 ) Income taxes 1,612 1,141 Other (911 ) (433 ) Net cash flows from operating activities 5,963 4,928 Cash flows from investing activities: Purchases of fixed maturity securities (2,164 ) (1,996 ) Purchases of equity securities (1,624 ) (1,202 ) Sales of fixed maturity securities 227 88 Redemptions and maturities of fixed maturity securities 1,662 1,989 Sales and redemptions of equity securities 1,112 103 Purchases of loans and finance receivables (39 ) (58 ) Collections of loans and finance receivables 129 501 Acquisitions of businesses, net of cash acquired (3,995 ) (700 ) Purchases of property, plant and equipment (3,447 ) (2,794 ) Other 7 214 Net cash flows from investing activities (8,132 ) (3,855 ) Cash flows from financing activities: Proceeds from borrowings of insurance and other businesses 3,241 10 Proceeds from borrowings of railroad, utilities and energy businesses 1,984 1,925 Proceeds from borrowings of finance businesses 998 749 Repayments of borrowings of insurance and other businesses (1,722 ) (27 ) Repayments of borrowings of railroad, utilities and energy businesses (636 ) (838 ) Repayments of borrowings of finance businesses (1,073 ) (854 ) Changes in short term borrowings, net 136 (4 ) Acquisitions of noncontrolling interests (43 ) (1,286 ) Other (67 ) 14 Net cash flows from financing activities 2,818 (311 ) Effects of foreign currency exchange rate changes (207 )  Increase in cash and cash equivalents 442 762 Cash and cash equivalents at beginning of year 63,269 48,186 Cash and cash equivalents at end of first quarter * $63,711 $48,948 * Cash and cash equivalents are comprised of the following: Beginning of year Insurance and Other $57,974 $42,433 Railroad, Utilities and Energy 3,001 3,400 Finance and Financial Products 2,294 2,353 $63,269 $48,186 End of first quarter Insurance and Other $58,198 $42,193 Railroad, Utilities and Energy 3,522 3,847 Finance and Financial Products 1,991 2,908 $63,711 $48,948

See accompanying Notes to Consolidated Financial Statements

5

BERKSHIRE HATHAWAY INC.

and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2015

Note 1. General

The accompanying unaudited Consolidated Financial Statements include the accounts of Berkshire Hathaway Inc. (Berkshire or Company) consolidated 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 Berkshires most recently issued Annual Report on Form 10-K (Annual Report) which includes information necessary or useful to understanding Berkshires businesses and financial statement presentations. Our significant accounting policies and practices were presented as Note 1 to the Consolidated Financial Statements included in the Annual Report.

Financial information in this Report reflects any 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 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 liabilities for unpaid losses of insurance subsidiaries can be more significant to results of interim periods than to results for a full year. Variations in the amount and timing of investment gains/losses can cause significant variations in periodic net earnings. Investment gains/losses are recorded when investments are disposed or are other-than-temporarily impaired. In addition, changes in the fair values of liabilities associated with derivative contracts can cause significant variations in periodic net earnings.

Note 2. New accounting pronouncements

In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers. ASU 2014-09 applies to contracts with customers, excluding, most notably, insurance and leasing contracts. ASU 2014-09 prescribes a framework in accounting for revenues from contracts, including (a) identification of the contract, (b) identification of the performance obligations under the contract, (c) determination of the transaction price, (d) allocation of the transaction price to the identified performance obligations and (e) recognition of revenues as the identified performance obligations are satisfied. ASU 2014-09 also prescribes additional disclosures and financial statement presentations. ASU 2014-09 is effective for public entities in annual reporting periods beginning after December 15, 2016. Early application is not permitted. ASU 2014-09 may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. On April 1, 2015, the FASB tentatively decided to defer the effective date one year to annual reporting periods beginning after December 15, 2017.

In April 2015, the FASB issued ASU 2015-05 IntangiblesGoodwill and OtherInternal-Use Software, which clarifies that software licenses contained in a cloud computing arrangement should be capitalized if the customer has the right to take possession of the software and the ability to run the software outside of the cloud computing arrangement. ASU 2015-05 is effective for annual periods beginning after December 15, 2015 and may be adopted prospectively or retrospectively. In April 2015, the FASB also issued ASU 2015-03 InterestImputation of Interest, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, instead of as an asset. The recognition and measurement guidance for debt issuance costs under current GAAP is not affected by ASU 2015-03. ASU 2015-03 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015 and should be adopted retrospectively. Early adoption is permitted for financial statements that have not been previously issued.

We are evaluating the effect the adoption each of these standards will have on our Consolidated Financial Statements.

Note 3. Significant business acquisitions

Our long-held acquisition strategy is to acquire businesses at sensible prices that have consistent earning power, good returns on equity and able and honest management.

In the first quarter of 2015, Berkshire acquired controlling interests of the Van Tuyl Group. The Van Tuyl Group (now named Berkshire Hathaway Automotive) includes 81 automotive dealerships located in 10 states as well as two related insurance businesses, two auto auctions and a manufacturer of automotive fluid maintenance products. In addition to selling new and pre-owned automobiles, the Berkshire Hathaway Automotive group offers repair and other services and products, including extended warranty services and other automotive protection plans. Consideration paid for the acquisition was $4.1 billion. On December 1, 2014, Berkshire Hathaway Energy Company acquired AltaLink, L.P. (AltaLink) for a cash purchase price of C$3.1 billion (approximately $2.7 billion). AltaLink is a regulated electric transmission-only business, headquartered in Calgary, Alberta. Financial results attributable to these acquisitions are included in our Consolidated Financial Statements beginning on their respective acquisition dates.

6

Notes to Consolidated Financial Statements (Continued)

Note 3. Significant business acquisitions (Continued)

Preliminary fair values of identified assets acquired and liabilities assumed and residual goodwill at their respective acquisition dates are summarized as follows (in millions).

Berkshire Hathaway

Automotive AltaLink Cash and investments $ 1,275 $ 15 Inventories 1,209  Property, plant and equipment 1,034 5,610 Goodwill 2,260 1,731 Other assets 1,033 287 Assets acquired $ 6,811 $ 7,643 Accounts payable, accruals and other liabilities $ 1,075 $ 1,064 Notes payable and other borrowings 1,129 3,851 Noncontrolling interests 495  Liabilities assumed and noncontrolling interests $ 2,699 $ 4,915 Net assets $ 4,112 $ 2,728

The following table sets forth certain unaudited pro forma consolidated earnings data for the first three months of 2015 and 2014 as if the acquisitions discussed previously were consummated on the same terms at the beginning of the year preceding their respective acquisition dates (in millions, except per share amounts).

2015 2014 Revenues $ 49,744 $ 47,640 Net earnings attributable to Berkshire Hathaway shareholders 5,192 4,772 Net earnings per equivalent Class A common share attributable to Berkshire Hathaway shareholders 3,160 2,903

Note 4. Investments in fixed maturity securities

Investments in securities with fixed maturities as of March 31, 2015 and December 31, 2014 are summarized by type below (in millions).

Amortized

Cost Unrealized

Gains Unrealized

Losses Fair

Value March 31, 2015 U.S. Treasury, U.S. government corporations and agencies $ 3,389 $ 20 $ (1 ) $ 3,408 States, municipalities and political subdivisions 1,781 85 (1 ) 1,865 Foreign governments 11,874 405 (181 ) 12,098 Corporate bonds 7,298 1,061 (7 ) 8,352 Mortgage-backed securities 1,668 220 (4 ) 1,884 $ 26,010 $ 1,791 $ (194 ) $ 27,607 December 31, 2014 U.S. Treasury, U.S. government corporations and agencies $ 2,921 $ 14 $ (5 ) $ 2,930 States, municipalities and political subdivisions 1,820 93 (1 ) 1,912 Foreign governments 12,023 373 (126 ) 12,270 Corporate bonds 7,704 1,072 (5 ) 8,771 Mortgage-backed securities 1,555 202 (4 ) 1,753 $ 26,023 $ 1,754 $ (141 ) $ 27,636

7

Notes to Consolidated Financial Statements (Continued)

Note 4. Investments in fixed maturity securities (Continued)

Investments in fixed maturity securities are reflected in our Consolidated Balance Sheets as follows (in millions).

March 31,

2015 December 31,

2014 Insurance and other $27,366 $27,397 Finance and financial products 241 239 $27,607 $27,636

Investments in foreign government securities include securities issued by national and provincial government entities as well as instruments that are unconditionally guaranteed by such entities. As of March 31, 2015, approximately 93% of foreign government holdings were rated AA or higher by at least one of the major rating agencies. Approximately 75% of foreign government holdings were issued or guaranteed by the United Kingdom, Germany, Australia, Canada or The Netherlands. Unrealized losses on all fixed maturity investments in a continuous unrealized loss position for more than twelve consecutive months were $10 million as of March 31, 2015 and $15 million as of December 31, 2014.

The amortized cost and estimated fair value of securities with fixed maturities at March 31, 2015 are summarized below by contractual maturity dates. Actual maturities will differ from contractual maturities because issuers of certain of the securities retain early call or prepayment rights. Amounts are in millions.

Due in one

year or less Due after one

year through

five years Due after five

years through

ten years Due after

ten years Mortgage-backed

securities Total Amortized cost $7,827 $11,324 $2,347 $2,844 $1,668 $26,010 Fair value 7,715 12,059 2,498 3,451 1,884 27,607

Note 5. Investments in equity securities

Investments in equity securities as of March 31, 2015 and December 31, 2014 are summarized based on the primary industry of the investee in the table below (in millions).

Cost Basis Unrealized

Gains Unrealized

Losses Fair

Value March 31, 2015 * Banks, insurance and finance $ 22,948 $ 30,964 $  $ 53,912 Consumer products 6,862 17,478 (1 ) 24,339 Commercial, industrial and other 29,026 9,276 (1,022 ) 37,280 $ 58,836 $ 57,718 $ (1,023 ) $ 115,531

* Approximately 58% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company  $11.8 billion; Wells Fargo & Company  $26.7 billion; International Business Machines Corporation  $12.8 billion; and The Coca-Cola Company  $16.2 billion).

Cost Basis Unrealized

Gains Unrealized

Losses Fair

Value December 31, 2014 * Banks, insurance and finance $ 22,495 $ 33,170 $  $ 55,665 Consumer products 6,951 18,389 (1 ) 25,339 Commercial, industrial and other 28,924 8,578 (1,036 ) 36,466 $ 58,370 $ 60,137 $ (1,037 ) $ 117,470

* Approximately 59% of the aggregate fair value was concentrated in the equity securities of four companies (American Express Company  $14.1 billion; Wells Fargo & Company  $26.5 billion; International Business Machines Corporation  $12.3 billion; and The Coca-Cola Company  $16.9 billion).

8

Notes to Consolidated Financial Statements (Continued)

Note 5. Investments in equity securities (Continued)

As of March 31, 2015 and December 31, 2014, we concluded that there were no unrealized losses that were other than temporary. Our conclusions were based on: (a) our ability and intent to hold the securities to recovery; (b) our assessment that the underlying business and financial condition of each of these issuers was favorable; (c) our opinion that the relative price declines were not significant; and (d) our belief that market prices will increase to and exceed our cost. As of March 31, 2015 and December 31, 2014, unrealized losses on equity securities in a continuous unrealized loss position for more than twelve consecutive months were $65 million.

Investments in equity securities are reflected in our Consolidated Balance Sheets as follows (in millions).

March 31,

2015 December 31,

2014 Insurance and other $113,341 $115,529 Railroad, utilities and energy * 1,158 881 Finance and financial products 1,032 1,060 $115,531 $117,470

* Included in other assets.

Note 6. Other investments

Other investments include preferred stock of Wm. Wrigley Jr. Company (Wrigley), The Dow Chemical Company (Dow) and Bank of America Corporation (BAC), warrants to purchase common stock of BAC and our investments in Restaurant Brands International, Inc. (RBI). Other investments are classified as available-for-sale and carried at fair value and are shown in our Consolidated Balance Sheets as follows (in millions).

Cost Fair Value March 31,

2015 December 31,

2014 March 31,

2015 December 31,

2014 Insurance and other $9,970 $9,970 $15,208 $16,346 Finance and financial products 3,052 3,052 5,666 5,978 $13,022 $13,022 $20,874 $22,324

We acquired $2.1 billion liquidation amount of Wrigley preferred stock in conjunction with the Mars Incorporated (Mars) acquisition of Wrigley. The Wrigley preferred stock is entitled to dividends at 5% per annum and is subject to certain put and call arrangements in 2016 and then annually beginning in 2021. The redemption amount will be based upon the earnings of Wrigley.

We own 3,000,000 shares of Series A Cumulative Convertible Perpetual Preferred Stock of Dow (Dow Preferred) with a liquidation value of $1,000 per share. Each share of the Dow Preferred is convertible into 24.201 shares of Dow common stock (equivalent to a conversion price of $41.32 per share). Beginning in April 2014, Dow has the option to cause some or all of the Dow Preferred to be converted into Dow common stock at the then applicable conversion rate, if the New York Stock Exchange closing price of its common stock exceeds $53.72 per share for any 20 trading days within a period of 30 consecutive trading days ending on the day before Dow exercises its option. The Dow Preferred is entitled to dividends at a rate of 8.5% per annum.

We own 50,000 shares of 6% Non-Cumulative Perpetual Preferred Stock of BAC (BAC Preferred) with a liquidation value of $100,000 per share and warrants to purchase 700,000,000 shares of common stock of BAC (BAC Warrants). At the end of 2013, Berkshire agreed to a proposed amendment to the BAC Preferred and BACs common stock shareholders approved the amendment on May 7, 2014. The amendment provides that the BAC Preferred may not be redeemed at the option of BAC before May 7, 2019 and dividends payable are no longer cumulative. The BAC Preferred redemption price continues to be $105,000 per share (or $5.25 billion in aggregate). The BAC Warrants expire in 2021 and are exercisable for an additional aggregate cost of $5 billion ($7.142857/share).

On December 12, 2014, we acquired Class A 9% Cumulative Compounding Perpetual Preferred Shares of RBI (RBI Preferred) having a stated value of $3 billion and common stock of RBI for an aggregate cost of $3 billion. RBI, domiciled in Canada, is a newly formed entity that is the ultimate parent company of Burger King and Tim Hortons. As of the acquisition date, our combined investment in RBI possessed approximately 14.4% of the voting interests of RBI. The RBI Preferred is entitled to dividends on a cumulative basis of 9% per annum plus an additional amount that is intended to produce an after-tax yield to Berkshire as if the dividends were paid by a U.S.-based company.

9

Notes to Consolidated Financial Statements (Continued)

Note 7. Investments in H.J. Heinz Holding Corporation

On June 7, 2013, Berkshire and an affiliate of the global investment firm 3G Capital (such affiliate, 3G), through a newly formed holding company, H.J. Heinz Holding Corporation (Heinz Holding), acquired H.J. Heinz Company (Heinz). Berkshire and 3G each made equity investments in Heinz Holding, which, together with debt financing obtained by Heinz Holding, was used to acquire Heinz for approximately $23.25 billion in the aggregate.

Heinz is one of the worlds leading marketers and producers of healthy, convenient and affordable foods specializing in ketchup, sauces, meals, soups, snacks and infant nutrition. Heinz is a global family of leading branded products, including Heinz® Ketchup, sauces, soups, beans, pasta, infant foods, Ore-Ida® potato products, Weight Watchers® Smart Ones® entrées and T.G.I. Fridays® snacks.

Berkshires investments in Heinz Holding consist of 425 million shares of common stock, warrants to acquire approximately 46 million additional shares of common stock, and cumulative compounding preferred stock (Preferred Stock) with a liquidation preference of $8 billion. The aggregate cost of these investments was $12.25 billion. 3G also acquired 425 million shares of Heinz Holding common stock for $4.25 billion. In addition, Heinz Holding reserved 39.6 million shares of common stock for issuance to its management and directors under equity grants, including stock options.

The Preferred Stock possesses no voting rights except as required by law or for certain matters specified in the Heinz Holding charter. The Preferred Stock is entitled to dividends at 9% per annum whether or not declared, is senior in priority to the common stock and is callable after June 7, 2016 at the liquidation value plus an applicable premium and any accrued and unpaid dividends. Under the Heinz Holding charter and a shareholders agreement entered into as of the acquisition date (the shareholders agreement), after June 7, 2021, Berkshire can cause Heinz Holding to attempt to sell shares of common stock through public offerings or other issuances (redemption offerings), the proceeds of which would be required to be used to redeem any outstanding shares of Preferred Stock. The warrants are exercisable for one cent per share and expire on June 7, 2018.

Berkshire and 3G each currently own approximately 50% of the outstanding shares of common stock and possess equal voting interests in Heinz Holding. Under the shareholders agreement, unless and until Heinz Holding engages in a public offering, Berkshire and 3G each must approve all significant transactions and governance matters involving Heinz Holding and Heinz so long as Berkshire and 3G each continue to hold at least 66% of their initial common stock investments, except for (i) the declaration and payment of dividends on the Preferred Stock, and actions related to a Heinz Holding call of the Preferred Stock, for which Berkshire does not have a vote or approval right, and (ii) redemption offerings and redemptions resulting therefrom, which may only be triggered by Berkshire. No dividends may be paid on the common stock if there are any unpaid dividends on the Preferred Stock. See Note 19 for additional information concerning Berkshires investments in Heinz Holding.

We are accounting for our investments in Heinz Holding common stock and common stock warrants on the equity method. Accordingly, we included our proportionate share of net earnings attributable to common stockholders and other comprehensive income in our Consolidated Statements of Earnings and Comprehensive Income. We account for our investment in Preferred Stock as an equity investment and it is carried at cost in our Consolidated Balance Sheets. Dividends earned on the Preferred Stock and our share of Heinz Holdings net earnings or loss attributable to common stockholders are included in interest, dividend and other investment income of Insurance and Other in our Consolidated Statements of Earnings.

Summarized consolidated financial information of Heinz Holding and its subsidiaries follows (in millions).

March 29,

2015 December 28,

2014 Assets $ 36,292 $ 36,763 Liabilities 20,930 21,077 First quarter 2015 First quarter 2014 Sales $ 2,478 $ 2,800 Net earnings $ 276 $ 195 Preferred stock dividends earned by Berkshire (180 ) (180 ) Net earnings attributable to common stockholders $ 96 $ 15 Earnings attributable to Berkshire Hathaway Shareholders * $ 231 $ 188

* Includes dividends earned and Berkshires share of net earnings attributable to common stockholders.

10

Notes to Consolidated Financial Statements (Continued)

Note 8. Investment gains/losses

Investment gains/losses, including other-than-temporary impairment (OTTI) losses are summarized below (in millions).

First Quarter 2015 2014 Fixed maturity securities Gross gains from sales and other disposals $ 29 $ 190 Gross losses from sales and other disposals (38 ) (29 ) Equity securities Gross gains from sales and redemptions 106 1,004 Gross losses from sales and redemptions (6 )  OTTI losses  (19 ) Other 6 (15 ) $ 97 $ 1,131

Gains from disposals of equity securities in the first quarter of 2014 included non-cash gains of $949 million from the exchange of Phillips 66 (PSX) common stock in connection with the acquisition of Phillips Specialty Products Inc. (subsequently renamed Lubrizol Specialty Products Inc. (LSPI)). The non-cash gain represented the excess of the fair value of the net assets of LSPI received over the cost basis of the PSX shares exchanged.

We record investments in equity and fixed maturity securities classified as available-for-sale at fair value and record the difference between fair value and cost in other comprehensive income. OTTI losses recognized in earnings represent reductions in the cost basis of the investment, but not the fair value. Accordingly, such losses that are included in earnings are generally offset by a credit to other comprehensive income, producing no net effect on shareholders equity as of the balance sheet date.

Note 9. Receivables

Receivables of insurance and other businesses are comprised of the following (in millions).

March 31,

2015 December 31,

2014 Insurance premiums receivable $ 9,034 $ 7,914 Reinsurance recoverable on unpaid losses 3,164 3,116 Trade and other receivables 12,111 11,133 Allowances for uncollectible accounts (303 ) (311 ) $ 24,006 $ 21,852

Loans and finance receivables of finance and financial products businesses are summarized as follows (in millions).

March 31,

2015 December 31,

2014 Loans and finance receivables before allowances and discounts $ 12,936 $ 13,150 Allowances for uncollectible loans (198 ) (303 ) Unamortized acquisition discounts (264 ) (281 ) $ 12,474 $ 12,566

11

Notes to Consolidated Financial Statements (Continued)

Note 9. Receivables (Continued)

Loans and finance receivables are predominantly installment loans originated or acquired by our manufactured housing business. Provisions for loan losses for the first quarter of 2015 and 2014 were $35 million and $46 million, respectively. Loan charge-offs, net of recoveries, were $46 million in the first quarter of 2015 and $47 million in the first quarter of 2014. In the first quarter of 2015, we reclassified $94 million of allowances in uncollectible loans and related installment loan receivables that are in substance foreclosures or repossessions to other assets. The reclassifications had no impact on earnings or cash flows. At March 31, 2015, approximately 98% of the loan balances were evaluated collectively for impairment. As a part of the evaluation process, credit quality indicators are reviewed and loans are designated as performing or non-performing. At March 31, 2015, approximately 99% of the loan balances were determined to be performing and approximately 96% of the loan balances were current as to payment status.

Note 10. Inventories

Inventories are comprised of the following (in millions).

March 31,

2015 December 31,

2014 Raw materials $ 1,864 $ 1,881 Work in process and other 839 850 Finished manufactured goods 3,512 3,333 Goods acquired for resale 5,466 4,172 $ 11,681 $ 10,236

Note 11. Property, plant and equipment

Property, plant and equipment of our insurance and other businesses is summarized below (in millions).

Range of

estimated useful life March 31,

2015 December 31,

2014 Land  $ 1,466 $ 1,171 Buildings and improvements 2  40 years 7,230 6,600 Machinery and equipment 3  25 years 16,392 16,413 Furniture, fixtures and other 2  18 years 3,334 3,136 28,422 27,320 Accumulated depreciation (13,261) (13,167) $ 15,161 $ 14,153

Depreciation expense of insurance and other businesses for the first quarter of 2015 and 2014 was $404 million and $397 million, respectively.

12

Notes to Consolidated Financial Statements (Continued)

Note 11. Property, plant and equipment (Continued)

Property, plant and equipment of our railroad and our utilities and energy businesses is summarized below (in millions).

Range of

estimated useful life March 31,

2015 December 31,

2014 Railroad: Land  $ 6,020 $ 5,983 Track structure and other roadway 7  100 years 43,017 42,588 Locomotives, freight cars and other equipment 6  40 years 10,150 9,493 Construction in progress  1,453 1,292 Utilities and energy: Utility generation, distribution and transmission system 5  80 years 64,477 64,645 Interstate pipeline assets 3  80 years 6,722 6,660 Independent power plants and other assets 3  30 years 5,275 5,035 Construction in progress  4,798 5,194 141,912 140,890 Accumulated depreciation (26,412) (25,836) $ 115,500 $ 115,054

Railroad property, plant and equipment includes the land, other roadway, track structure and rolling stock (primarily locomotives and freight cars) of BNSF. The utility generation, distribution and transmission system and interstate pipeline assets are the regulated assets of public utility and natural gas pipeline subsidiaries. Depreciation expense of the railroad, utilities and energy businesses for the first quarter of 2015 and 2014 was $1,066 million and $947 million, respectively.

Assets held for lease and property, plant and equipment of our finance and financial products businesses are summarized below (in millions).

Range of

estimated useful life March 31,

2015 December 31,

2014 Assets held for lease 5  30 years $ 9,882 $ 9,810 Land  225 227 Buildings, machinery and other 3  50 years 1,177 1,179 11,284 11,216 Accumulated depreciation (3,205) (3,179) $ 8,079 $ 8,037

Assets held for lease includes railcars, intermodal tank containers, cranes, over-the-road trailers, storage units and furniture. Depreciation expense of the finance and financial products businesses for the first quarter of 2015 and 2014 was $147 million and $148 million, respectively.

Note 12. Goodwill and other intangible assets

The change in the carrying value of goodwill for the first three months of 2015 and the year ended December 31, 2014 is summarized as follows (in millions).

March 31,

2015 December 31,

2014 Balance at beginning of year $ 60,714 $ 57,011 Acquisitions of businesses 2,464 4,006 Other, including foreign currency translation (299) (303) Balance at end of period $ 62,879 $ 60,714

13

Notes to Consolidated Financial Statements (Continued)

Note 12. Goodwill and other intangible assets (Continued)

Intangible assets other than goodwill are included in other assets and are summarized as follows (in millions).

March 31, 2015 December 31, 2014 Gross carrying

amount Accumulated

amortization Gross carrying

amount Accumulated

amortization Insurance and other $ 14,294 $ 4,671 $ 13,714 $ 4,476 Railroad, utilities and energy 869 200 2,254 1,551 $ 15,163 $ 4,871 $ 15,968 $ 6,027 Trademarks and trade names $ 3,111 $ 625 $ 3,117 $ 599 Patents and technology 4,067 1,848 5,425 3,133 Customer relationships 5,541 1,858 5,603 1,768 Other 2,444 540 1,823 527 $ 15,163 $ 4,871 $ 15,968 $ 6,027

In the first quarter of 2015 and 2014, amortization expense was $255 million and $280 million, respectively. Intangible assets with indefinite lives as of March 31, 2015 and December 31, 2014 were $3,188 million and $2,586 million, respectively.

Note 13. Derivative contracts

Derivative contracts have been entered into primarily by our finance and financial products and our energy businesses. A summary of derivative contract liabilities and notional values related to our finance and financial products businesses follows (in millions).

March 31, 2015 December 31, 2014 Liabilities Notional

Value Liabilities Notional

Value Equity index put options $3,249 $27,604 (1) $4,560 $29,469 (1) Credit default 243 7,792 (2) 250 7,792 (2) Other 11  $3,503 $4,810

(1) Represents the aggregate undiscounted amounts payable assuming that the value of each index is zero at each contracts expiration date. Notional amounts are based on the foreign currency exchange rates as of each balance sheet date. In the first quarter of 2015, the aggregate notional value declined as a result of foreign currency exchange rate changes applicable to certain of the contracts.

(2) Represents the aggregate undiscounted amounts payable under the contracts assuming all underlying issuers default and the residual value of the specified obligations is zero.

The derivative contracts of our finance and financial products businesses are recorded at fair value and the changes in the fair values of such contracts are reported in earnings as derivative gains/losses. We entered into these contracts with the expectation that the premiums received would exceed the amounts ultimately paid to counterparties. A summary of the derivative gains/losses included in our Consolidated Statements of Earnings for the first quarter of 2015 and 2014 follows (in millions).

First Quarter 2015 2014 Equity index put options $ 1,311 $ (132) Credit default 7 373 Other  (5) $ 1,318 $ 236

14

Notes to Consolidated Financial Statements (Continued)

Note 13. Derivative contracts (Continued)

The equity index put option contracts were written between 2004 and 2008. These contracts are European style options written on four major equity indexes and will expire between June 2018 and January 2026. Future payments, if any, under any given contract will be required if the underlying index value is below the strike price at the contract expiration date. We received the premiums on these contracts in full at the contract inception dates and therefore have no counterparty credit risk.

The aggregate intrinsic value (which is the undiscounted liability assuming the contracts are settled based on the index values and foreign currency exchange rates as of the balance sheet date) of our equity index put option contracts was approximately $444 million at March 31, 2015 and $1.4 billion at December 31, 2014. However, these contracts may not be unilaterally terminated or fully settled before the expiration dates. Therefore, the ultimate amount of cash basis gains or losses on these contracts will not be determined for several years. The remaining weighted average life of all contracts was approximately 5.75 years at March 31, 2015.

Our remaining credit default contract was written in 2008 and relates to approximately 500 zero-coupon municipal debt issues with maturities ranging from 2019 to 2054. The underlying debt issues have a weighted average maturity of approximately 16.5 years. Pursuant to the contract terms, future loss payments are required in the event of non-payment by the issuer and non-performance by the primary financial guarantee insurers under their contracts. Payments under our contract, if any, are not required prior to the maturity dates of the underlying obligations. The premium was received at the inception of this contract and therefore we have no counterparty credit risk.

A limited number of our equity index put option contracts contain collateral posting requirements with respect to changes in the fair value or intrinsic value of the contracts and/or a downgrade of Berkshires credit ratings. As of March 31, 2015 and December 31, 2014, we did not have any collateral posting requirements. If Berkshires credit ratings (currently AA from Standard & Poors and Aa2 from Moodys) are downgraded below either A- by Standard & Poors or A3 by Moodys, collateral of up to $1.1 billion could be required to be posted.

Our regulated utility subsidiaries are exposed to variations in the prices of fuel required to generate electricity, wholesale electricity purchased and sold and natural gas supplied for customers. Derivative instruments, including forward purchases and sales, futures, swaps and options, are used to manage a portion of these price risks. Derivative contract assets are included in other assets of railroad, utilities and energy businesses and were $107 million and $108 million as of March 31, 2015 and December 31, 2014, respectively. Derivative contract liabilities are included in accounts payable, accruals and other liabilities of railroad, utilities and energy businesses and were $237 million and $230 million as of March 31, 2015 and December 31, 2014, respectively. Unrealized gains and losses under the contracts of our regulated utilities that are probable of recovery or refund through rates are recorded as regulatory assets or liabilities. Unrealized gains or losses on contracts accounted for as cash flow or fair value hedges are recorded in other comprehensive income or in net earnings, as appropriate.

Note 14. Supplemental cash flow information

A summary of supplemental cash flow information for the first quarter of 2015 and 2014 is presented in the following table (in millions).

First Quarter 2015 2014 Cash paid during the period for: Income taxes $ 248 $ 283 Interest: Insurance and other businesses 149 139 Railroad, utilities and energy businesses 697 678 Finance and financial products businesses 89 102 Non-cash investing and financing activities: Liabilities assumed in connection with business acquisitions 2,213 567 Equity securities exchanged in connection with business acquisitions  1,350

15

Notes to Consolidated Financial Statements (Continued)

Note 15. Notes payable and other borrowings

Notes payable and other borrowings are summarized below (in millions). The weighted average interest rates and maturity date ranges shown in the following tables are based on borrowings as of March 31, 2015.

Weighted

Average

Interest Rate March 31,

2015 December 31,

2014 Insurance and other: Issued by Berkshire due 2015-2047 2.2% $ 9,789 $ 8,354 Short-term subsidiary borrowings 1.7% 1,918 839 Other subsidiary borrowings due 2015-2044 5.9% 2,822 2,701 $ 14,529 $ 11,894

In March 2015, Berkshire issued 3.0 billion in senior unsecured notes consisting of 750 million of 0.75% senior notes due in 2023, 1.25 billion of 1.125% senior notes due in 2027 and 1.0 billion of 1.625% senior notes due in 2035. In February 2015, $1.7 billion of Berkshire senior notes matured.

Weighted

Average

Interest Rate March 31,

2015 December 31,

2014 Railroad, utilities and energy: Issued by Berkshire Hathaway Energy Company (BHE) and its subsidiaries: BHE senior unsecured debt due 2017-2045 5.1% $ 7,860 $ 7,860 Subsidiary and other debt due 2015-2064 4.9% 28,278 28,439 Issued by BNSF due 2015-2097 5.0% 20,466 19,280 $ 56,604 $ 55,579

BHE subsidiary debt represents amounts issued pursuant to separate financing agreements. Substantially all of the assets of certain BHE subsidiaries are, or may be, pledged or encumbered to support or otherwise secure the debt. These borrowing arrangements generally contain various covenants including, but not limited to, leverage ratios, interest coverage ratios and debt service coverage ratios. BNSFs borrowings are primarily senior unsecured debentures. In March 2015, BNSF issued $1.5 billion of debentures consisting of $500 million of 3.0% debentures due in 2025 and $1.0 billion of 4.15% debentures due in 2045. As of March 31, 2015, BNSF and BHE and their subsidiaries were in compliance with all applicable debt covenants. Berkshire does not guarantee any debt, borrowings or lines of credit of BNSF, BHE or their subsidiaries.

Weighted

Average

Interest Rate March 31,

2015 December 31,

2014 Finance and financial products: Issued by Berkshire Hathaway Finance Corporation (BHFC) due 2015-2043 2.7% $ 11,177 $ 11,178 Issued by other subsidiaries due 2015-2036 5.3% 1,485 1,558 $ 12,662 $ 12,736

In January 2015, BHFC issued $1.0 billion of new senior notes consisting of $400 million floating rate senior notes that mature in 2017 and $600 million floating rate senior notes that mature in 2018, which replaced $1.0 billion of senior notes that matured. The borrowings of BHFC, a wholly owned finance subsidiary of Berkshire, are fully and unconditionally guaranteed by Berkshire.

As of March 31, 2015, our subsidiaries had unused lines of credit and commercial paper capacity aggregating approximately $8.4 billion to support short-term borrowing programs and provide additional liquidity. Such unused lines of credit included about $4.7 billion related to BHE and its subsidiaries. In addition to BHFCs borrowings, Berkshire has guaranteed other subsidiary borrowings, aggregating approximately $3.4 billion at March 31, 2015. Generally, Berkshires guarantee of a subsidiarys debt obligation is an absolute, unconditional and irrevocable guarantee for the full and prompt payment when due of all present and future payment obligations.

16

Notes to Consolidated Financial Statements (Continued)

Note 16. Fair value measurements

Our financial assets and liabilities are summarized below as of March 31, 2015 and December 31, 2014 with fair values shown according to the fair value hierarchy (in millions). The carrying values of cash and cash equivalents, accounts receivable and accounts payable, accruals and other liabilities are considered to be reasonable estimates of their fair values.

Carrying

Value Fair Value Quoted

Prices

(Level 1) Significant Other

Observable Inputs

(Level 2) Significant

Unobservable Inputs

(Level 3) March 31, 2015 Investments in fixed maturity securities: U.S. Treasury, U.S. government corporations and agencies $ 3,408 $ 3,408 $ 2,634 $ 774 $  States, municipalities and political subdivisions 1,865 1,865  1,865  Foreign governments 12,098 12,098 7,902 4,196  Corporate bonds 8,352 8,352  8,345 7 Mortgage-backed securities 1,884 1,884  1,884  Investments in equity securities 115,531 115,531 115,485 45 1 Investment in Heinz Holding Preferred Stock 7,710 8,616   8,616 Other investments 20,874 20,874 324  20,550 Loans and finance receivables 12,474 12,635  23 12,612 Derivative contract assets (1) 107 107  11 96 Derivative contract liabilities: Railroad, utilities and energy (1) 237 237 18 180 39 Finance and financial products: Equity index put options 3,249 3,249   3,249 Credit default 243 243   243 Notes payable and other borrowings: Insurance and other 14,529 15,308  15,308  Railroad, utilities and energy 56,604 65,153  65,153  Finance and financial products 12,662 13,474  12,930 544 December 31, 2014 Investments in fixed maturity securities: U.S. Treasury, U.S. government corporations and agencies $ 2,930 $ 2,930 $ 2,264 $ 666 $  States, municipalities and political subdivisions 1,912 1,912  1,912  Foreign governments 12,270 12,270 7,981 4,289  Corporate bonds 8,771 8,771  8,763 8 Mortgage-backed securities 1,753 1,753  1,753  Investments in equity securities 117,470 117,470 117,424 45 1 Investment in Heinz Holding Preferred Stock 7,710 8,416   8,416 Other investments 22,324 22,324 329  21,995 Loans and finance receivables 12,566 12,891  33 12,858 Derivative contract assets (1) 108 108 1 13 94 Derivative contract liabilities: Railroad, utilities and energy (1) 230 230 18 169 43 Finance and financial products: Equity index put options 4,560 4,560   4,560 Credit default 250 250   250 Notes payable and other borrowings: Insurance and other 11,894 12,484  12,484  Railroad, utilities and energy 55,579 62,802  62,802  Finance and financial products 12,736 13,417  12,846 571

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

17

Notes to Consolidated Financial Statements (Continued)

Note 16. Fair value measurements (Continued)

The fair values of substantially all of our financial instruments were measured using market or income approaches. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, the fair values presented are not necessarily indicative of the amounts that could be realized in an actual current market exchange. The use of alternative market assumptions and/or estimation methodologies may have a material effect on the estimated fair value. The hierarchy for measuring fair value consists of Levels 1 through 3, which are described below.

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

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

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

Reconciliations of assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the three months ending March 31, 2015 and 2014 follow (in millions).

Investments

in fixed

maturity

securities Investments

in equity

securities

and other

investments Net

derivative

contract

liabilities Three months ending March 31, 2015 Balance at December 31, 2014 $ 8 $ 21,996 $ (4,759 ) Gains (losses) included in: Earnings   1,347 Other comprehensive income  (1,445 ) 1 Regulatory assets and liabilities   (3 ) Acquisitions, dispositions and settlements (1 )  (24 ) Transfers into/out of Level 3   3 Balance at March 31, 2015 $ 7 $ 20,551 $ (3,435 ) Three months ending March 31, 2014 Balance at December 31, 2013 $ 372 $ 17,958 $ (5,255 ) Gains (losses) included in: Earnings   222 Other comprehensive income  1,192 3 Regulatory assets and liabilities   2 Dispositions and settlements (1 )   Transfers into/out of Level 3 (56 )  (35 ) Balance at March 31, 2014 $ 315 $ 19,150 $ (5,063 )

18

Notes to Consolidated Financial Statements (Continued)

Note 16. Fair value measurements (Continued)

Gains and losses included in earnings are included as components of investment gains/losses, derivative gains/losses and other revenues, as appropriate and are primarily related to changes in the values of derivative contracts and settlement transactions. Substantially all of the gains and losses included in other comprehensive income are included as components of the net change in unrealized appreciation of investments and the reclassification of investment appreciation in earnings, as appropriate in our Consolidated Statements of Comprehensive Income.

Quantitative information as of March 31, 2015, with respect to assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) follows (in millions).

Fair

value Principal valuation

techniques Unobservable Inputs Weighted

Average Other investments: Preferred stocks $ 14,901 Discounted cash flow Expected duration 7 years Discount for transferability

restrictions and subordination 134 basis points Common stock warrants 5,649 Warrant pricing model Discount for transferability

and hedging restrictions 8% Net derivative liabilities: Equity index put options 3,249 Option pricing model Volatility 21% Credit default municipalities 243 Discounted cash flow Credit spreads 34 basis points

Other investments consist of preferred stocks and common stock warrants that we acquired in a few relatively large private placement transactions. These investments are subject to contractual restrictions on transferability and/or provisions that prevent us from economically hedging our investments. In applying discounted estimated cash flow techniques in valuing the perpetual preferred stocks, we made assumptions regarding the expected durations of the investments, as the issuers may have the right to redeem or convert these investments. We also made estimates regarding the impact of subordination, as the preferred stocks have a lower priority in liquidation than debt instruments of the issuers. In valuing the common stock warrants, we used a warrant valuation model. While most of the inputs to the model are observable, we are subject to the aforementioned contractual restrictions and we have applied discounts with respect to such restrictions. Increases or decreases to these inputs would result in decreases or increases to the fair values of the investments.

Our equity index put option and credit default contracts are illiquid and contain contract terms that are not standard in derivatives markets. For example, we are not required to post collateral under most of our contracts and many contracts have relatively long durations. For these and other reasons, we classified these contracts as Level 3. The methods we use to value these contracts are those that we believe market participants would use in determining exchange prices with respect to our contracts.

We value equity index put option contracts based on the Black-Scholes option valuation model. Inputs to this model include current index price, contract duration, dividend and interest rate inputs (including a Berkshire non-performance input) which are observable. However, we believe that the valuation of long-duration options using any model is inherently subjective and, given the lack of observable transactions and prices, acceptable values may be subject to wide ranges. Expected volatility inputs represent our expectations, which consider the remaining duration of each contract and assume that the contracts will remain outstanding until the expiration dates without offsetting transactions occurring in the interim. Increases or decreases in the volatility inputs will produce increases or decreases in the fair values of the liabilities.

19

Notes to Consolidated Financial Statements (Continued)

Note 17. Common stock

Changes in Berkshires issued, treasury and outstanding common stock during the first quarter of 2015 are shown in the table below.

Class A, $5 Par Value

(1,650,000 shares authorized) Class B, $0.0033 Par Value

(3,225,000,000 shares authorized) Issued Treasury Outstanding Issued Treasury Outstanding Balance at December 31, 2014 838,019 (11,680) 826,339 1,226,265,250 (1,409,762) 1,224,855,488 Conversions of Class A common stock to Class B common stock and exercises of replacement stock options issued in a business acquisition (1,528)  (1,528) 2,401,016  2,401,016 Balance at March 31, 2015 836,491 (11,680) 824,811 1,228,666,266 (1,409,762) 1,227,256,504

Each Class A common share is entitled to one vote per share. Class B common stock possesses dividend and distribution rights equal to one-fifteen-hundredth (1/1,500) of such rights of Class A common stock. Each Class B common share possesses voting rights equivalent to one-ten-thousandth (1/10,000) of the voting rights of a Class A share. Unless otherwise required under Delaware General Corporation Law, Class A and Class B common shares vote as a single class. Each share of Class A common stock is convertible, at the option of the holder, into 1,500 shares of Class B common stock. Class B common stock is not convertible into Class A common stock. On an equivalent Class A common stock basis, there were 1,642,982 shares outstanding as of March 31, 2015 and 1,642,909 shares outstanding as of December 31, 2014. In addition to our common stock, 1,000,000 shares of preferred stock are authorized, but none are issued and outstanding.

Berkshires Board of Directors (Berkshires Board) has approved a common stock repurchase program under which Berkshire may repurchase its Class A and Class B shares at prices no higher than a 20% premium over the book value of the shares. Berkshire may repurchase shares in the open market or through privately negotiated transactions. Berkshires Board authorization does not specify a maximum number of shares to be repurchased. However, repurchases will not be made if they would reduce Berkshires consolidated cash and cash equivalent holdings below $20 billion. The repurchase program does not obligate Berkshire to repurchase any dollar amount or number of Class A or Class B shares and there is no expiration date to the program. There were no share repurchases under the program in the first quarter of 2015.

Note 18. Accumulated other comprehensive income

A summary of the net changes in after-tax accumulated other comprehensive income attributable to Berkshire Hathaway shareholders and significant amounts reclassified out of accumulated other comprehensive income for the three months ending March 31, 2015 and 2014 follows (in millions).

Unrealized

appreciation of

investments, net Foreign

currency

translation Prior service

and actuarial

gains/losses of

defined benefit

pension plans Other Accumulated

other

comprehensive

income Three months ending March 31, 2015 Balance at December 31, 2014 $ 45,636 $ (1,957) $ (1,039 ) $ 92 $ 42,732 Other comprehensive income, net before reclassifications (2,376) (1,341) 23 (118 ) (3,812 ) Reclassifications from accumulated other comprehensive income (59)  8 (5 ) (56 ) Balance at March 31, 2015 $ 43,201 $ (3,298) $ (1,008 ) $ (31 ) $ 38,864 Reclassifications from other comprehensive income into net earnings: Investment gains/losses: Insurance and other $ (90) $  $  $  $ (90 ) Finance and financial products (1)    (1 ) Other   15 (6 ) 9 Reclassifications before income taxes (91 )  15 (6 ) (82 ) Applicable income taxes (32 )  7 (1 ) (26 ) $ (59 ) $  $ 8 $ (5 ) $ (56 )

20

Notes to Consolidated Financial Statements (Continued)

Note 18. Accumulated other comprehensive income (Continued)

Unrealized

appreciation of

investments, net Foreign

currency

translation Prior service

and actuarial

gains/losses of

defined benefit

pension plans Other Accumulated

other

comprehensive

income Three months ending March 31, 2014 Balance at December 31, 2013 $ 44,042 $ (146 ) $ 46 $ 83 $ 44,025 Other comprehensive income, net before reclassifications 1,674 24 (7 ) 18 1,709 Reclassifications from accumulated other comprehensive income (677 )  14 (22 ) (685 ) Balance at March 31, 2014 $ 45,039 $ (122 ) $ 53 $ 79 $ 45,049 Reclassifications from other comprehensive income into net earnings: Investment gains/losses: Insurance and other $ (969 ) $  $  $  $ (969 ) Finance and financial products (72 )    (72 ) Other   18 (37 ) (19 ) Reclassifications before income taxes (1,041 )  18 (37 ) (1,060 ) Applicable income taxes (364 )  4 (15 ) (375 ) $ (677 ) $  14 $ (22 ) $ (685 )

Note 19. Contingencies and Commitments

We are parties in a variety of legal actions arising out of the normal course of business. In particular, such legal actions affect our insurance and reinsurance businesses. Such litigation generally seeks to establish liability directly through insurance contracts or indirectly through reinsurance contracts issued 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 kinds of legal actions, some of which assert or may assert claims or seek to impose fines and penalties. We 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.

On November 13, 2014, Berkshire entered into a definitive agreement with The Procter & Gamble Company (P&G) whereby it will acquire the Duracell battery business from P&G. Pursuant to the agreement, in exchange for a recapitalized Duracell Company, which will include approximately $1.7 billion in cash at closing, P&G will receive shares of its common stock currently held by Berkshire subsidiaries having a fair value at March 31, 2015 of approximately $4.3 billion. The transaction is expected to close in the second half of 2015 and is subject to obtaining various regulatory approvals as well as certain other customary closing conditions.

On March 24, 2015, Berkshire entered into an Equity Commitment agreement with Heinz Holding, in which Berkshire committed to acquire approximately 262.9 million of newly issued shares of Heinz Holding for $5.26 billion. Berkshires acquisition of such shares is contingent upon the closing of a merger between Heinz Holding and the Kraft Foods Group, Inc. (Kraft) and upon 3Gs acquisition of approximately 237.1 million newly issued shares of Heinz Holding for $4.74 billion concurrent with Berkshires additional investment. In connection with the merger between Heinz Holding and Kraft, shareholders of Kraft will receive one share of newly issued Heinz Holding common stock for each share of Kraft common stock, and a special cash dividend of $16.50 per share. The closing of the merger is subject to Kraft shareholder approval, receipt of regulatory approvals and other customary closing conditions. These transactions are expected to be completed in the second half of 2015. Upon completion, Berkshire will own approximately 26.4% of the outstanding common stock of Heinz Holding, which would then be renamed The Kraft Heinz Company.

We own a 50% interest in a joint venture, Berkadia Commercial Mortgage LLC (Berkadia), with Leucadia National Corporation (Leucadia) owning the other 50% interest. Berkadia is a servicer of commercial real estate loans in the U.S., performing primary, master and special servicing functions for U.S. government agency programs, commercial mortgage-backed securities transactions, banks, insurance companies and other financial institutions. A significant source of funding for Berkadias operations is through the issuance of commercial paper. Repayment of the commercial paper is supported by a $2.5 billion surety policy issued by a Berkshire insurance subsidiary. Leucadia has agreed to indemnify us for one-half of any losses incurred under the policy. As of March 31, 2015, the aggregate amount of Berkadia commercial paper outstanding was $2.47 billion.

21

Notes to Consolidated Financial Statements (Continued)

Note 20. Business segment data

Revenues by segment for the first quarter of 2015 and 2014 were as follows (in millions).

First Quarter 2015 2014 Operating Businesses: Insurance group: Underwriting: GEICO $ 5,385 $ 4,884 General Re 1,498 1,557 Berkshire Hathaway Reinsurance Group 1,447 2,022 Berkshire Hathaway Primary Group 1,210 953 Investment income 1,090 951 Total insurance group 10,630 10,367 BNSF 5,602 5,447 Berkshire Hathaway Energy 4,331 4,306 McLane Company 11,643 10,454 Manufacturing 8,863 8,641 Service and retailing 4,521 3,358 Finance and financial products 1,554 1,435 47,144 44,008 Reconciliation of segments to consolidated amount: Investment and derivative gains/losses 1,415 1,367 Eliminations and other 85 78 $ 48,644 $ 45,453

Earnings before income taxes by segment for the first quarter of 2015 and 2014 were as follows (in millions).

First Quarter 2015 2014 Operating Businesses: Insurance group: Underwriting: GEICO $ 160 $ 353 General Re (47) 80 Berkshire Hathaway Reinsurance Group 459 183 Berkshire Hathaway Primary Group 175 99 Investment income 1,087 946 Total insurance group 1,834 1,661 BNSF 1,672 1,169 Berkshire Hathaway Energy 596 619 McLane Company 131 115 Manufacturing 1,205 1,068 Service and retailing 384 287 Finance and financial products 444 372 6,266 5,291 Reconciliation of segments to consolidated amount: Investment and derivative gains/losses 1,415 1,367 Interest expense, not allocated to segments (119) (77) Eliminations and other 85 17 $ 7,647 $ 6,598

22

Item 2. Managements Discussion and Analysis of Financial Condition and Results 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. Amounts are in millions.

First Quarter 2015 2014 Insurance  underwriting $ 480 $ 461 Insurance  investment income 875 720 Railroad 1,045 724 Utilities and energy 421 452 Manufacturing, service and retailing 1,123 933 Finance and financial products 289 238 Investment and derivative gains/losses 920 1,172 Other 11 5 Net earnings attributable to Berkshire Hathaway shareholders $ 5,164 $ 4,705

Through our subsidiaries, we engage in a number of diverse business activities. Our operating businesses are managed on an unusually decentralized basis. There are essentially no centralized or integrated business functions (such as sales, marketing, purchasing, legal or human resources) and there is minimal involvement by our corporate headquarters in the day-to-day business activities of the operating businesses. 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. It also is responsible for establishing and monitoring Berkshires corporate governance practices, including, but not limited to, communicating the appropriate tone at the top messages to its employees and associates, monitoring governance efforts, including those at the operating businesses, and participating in the resolution of governance-related issues as needed. The business segment data (Note 20 to the accompanying Consolidated Financial Statements) should be read in conjunction with this discussion.

Our insurance businesses generated after-tax earnings from underwriting in the first quarter of 2015 and 2014 of $480 million and $461 million, respectively. In the first quarter of 2015 and 2014, we did not incur any losses from significant catastrophe events. Our railroad business generated significantly higher earnings in 2015 compared to 2014. Results in 2015 were positively impacted by improved service levels and lower fuel and other operating expenses as compared to 2014. Our utility and energy business produced lower net earnings in the first quarter of 2015, as earnings from AltaLink (acquired in December 2014) were more than offset by lower earnings from our U.S.-based utility and natural gas pipeline businesses. Earnings from our manufacturing, service and retailing businesses in 2015 increased 20% in the aggregate over the first quarter of 2014, reflecting the impact of business acquisitions and earnings growth in certain operations.

Investment and derivative gains/losses in the first quarter of 2015 included after-tax gains from investments of $63 million and after-tax gains from changes in the fair values of derivative contracts of $857 million. Investment and derivative gains/losses in the first quarter of 2014 included an after-tax gain of approximately $900 million related to the exchange of Phillips 66 common stock for 100% of the common stock of a specialty chemical products subsidiary of Phillips 66. In addition, changes in the fair values of derivative contracts produced after-tax gains of $153 million in the first quarter of 2014. We believe that investment and derivative gains/losses are often meaningless in terms of understanding our reported results or evaluating our economic performance. These gains and losses have caused and will likely continue to cause significant volatility in our periodic earnings.

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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (Continued)

InsuranceUnderwriting

We engage in both primary insurance and reinsurance of property/casualty, life and health risks. In primary insurance activities, we assume defined portions of the risks of loss from persons or organizations that are directly subject to the risks. In reinsurance activities, we assume defined portions of similar or dissimilar risks that other insurers or reinsurers have subjected themselves to in their own insuring activities. Our insurance and reinsurance businesses are: (1) GEICO, (2) General Re, (3) Berkshire Hathaway Reinsurance Group (BHRG) and (4) Berkshire Hathaway Primary Group.

Our management views insurance businesses as possessing two distinct operations  underwriting and investing. Underwriting decisions are the responsibility of the unit managers; investing decisions, with limited exceptions, are the responsibility of Berkshires Chairman and CEO, Warren E. Buffett. Accordingly, we evaluate performance of underwriting operations without any allocation of investment income or investment gains.

The timing and amount of catastrophe losses can produce significant volatility in our periodic underwriting results, particularly with respect to BHRG and General Re. In the first quarters of 2015 and 2014, we did not incur any significant catastrophe losses, which we define as losses in excess of $100 million from a single event or series of related events. Our periodic underwriting results may be affected significantly by changes in estimates for unpaid losses and loss adjustment expenses, including amounts established for occurrences in prior years. Actual claim settlements and revised loss estimates will develop over time. Unpaid loss estimates recorded as of the balance sheet date will develop upward or downward in future periods, producing a corresponding decrease or increase to pre-tax earnings.

Our periodic underwriting results may also include significant foreign currency transaction gains and losses arising primarily from the changes in the valuation of non-U.S. Dollar denominated reinsurance assets and liabilities of our U.S.-based insurance subsidiaries as a result of foreign currency exchange rate fluctuations. Foreign currency exchange rate changes produced pre-tax gains in the first quarter of 2015 and losses in the comparable 2014 period. Historically, currency exchange rates have been volatile and the resulting impact on our underwriting earnings has been relatively significant. These gains and losses are included in underwriting expenses.

A key marketing strategy of our insurance businesses is the maintenance of extraordinary capital strength. A measure of capital strength is combined shareholders equity determined pursuant to statutory accounting rules (Statutory Surplus). Statutory Surplus of our insurance businesses was approximately $129 billion at December 31, 2014. This superior capital strength creates opportunities, especially with respect to reinsurance activities, to negotiate and enter into insurance and reinsurance contracts specially designed to meet the unique needs of insurance and reinsurance buyers. Underwriting results from our insurance businesses are summarized below. Amounts are in millions.

First Quarter 2015 2014 Underwriting gain (loss) attributable to: GEICO $ 160 $ 353 General Re (47) 80 Berkshire Hathaway Reinsurance Group 459 183 Berkshire Hathaway Primary Group 175 99 Pre-tax underwriting gain 747 715 Income taxes and noncontrolling interests 267 254 Net underwriting gain $ 480 $ 461

24

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (Continued)

InsuranceUnderwriting (Continued)

GEICO

Through GEICO, we primarily write private passenger automobile insurance, offering coverages to insureds in all 50 states and the District of Columbia. GEICOs policies are marketed mainly by direct response methods in which customers apply for coverage directly to the company via the Internet or over the telephone. This is a significant element in our strategy to be a low-cost auto insurer. In addition, we strive to provide excellent service to customers, with the goal of establishing long-term customer relationships. GEICOs underwriting results are summarized below. Dollars are in millions.

First Quarter 2015 2014 Amount % Amount % Premiums written $ 5,886 $ 5,339 Premiums earned $ 5,385 100.0 $ 4,884 100.0 Losses and loss adjustment expenses 4,316 80.1 3,701 75.8 Underwriting expenses 909 16.9 830 17.0 Total losses and expenses 5,225 97.0 4,531 92.8 Pre-tax underwriting gain $ 160 $ 353

Premiums written in the first quarter of 2015 were $5,886 million, an increase of 10.2% as compared to 2014. Premiums earned in the first quarter of 2015 increased $501 million (10.3%) to $5,385 million. The increase in premiums earned for voluntary auto was 9.7%, reflecting policies-in-force growth of 6.5% and increased premiums per policy of approximately 3.0% during the past twelve months. Voluntary auto new business sales increased about 1.4% in the first quarter of 2015 compared to the first quarter of 2014. During the first quarter of 2015, voluntary auto policies-in-force increased by 361,000 policies. In recent years, the growth in voluntary auto policies-in-force has been the greatest during the first quarter.

In the first quarter of 2015, our pre-tax underwriting gain was $160 million, a decline of $193 million compared to the first quarter of 2014. In the first quarter of 2015, we experienced increases in claims frequencies and severities in several of our major coverages and our ratio of losses and loss adjustment expenses incurred to premiums earned (the loss ratio) increased to 80.1%, compared to 75.8% in 2014. As a result, we are implementing premium rate increases as needed.

Losses and loss adjustment expenses incurred in the first quarter of 2015 were $4,316 million, an increase of $615 million (16.6%) over the first quarter of 2014. Claims frequencies were higher in the first quarter of 2015 compared to 2014 for property damage and collision coverages (three to four percent range), bodily injury coverage (four to five percent range) and personal injury protection (PIP) coverage (one to two percent range). Average claims severities were also higher in the first quarter of 2015 for physical damage and collision coverages (four to five percent range), bodily injury coverage (four to six percent range) and PIP coverage (two to four percent range). Underwriting expenses in the first quarter of 2015 were $909 million, an increase of $79 million (9.5%) over 2014. The increase was primarily attributable to costs incurred to generate the increase in policies-in-force and to maintain service for existing policyholders.

25

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (Continued)

InsuranceUnderwriting (Continued)

General Re

Through General Re, we conduct a reinsurance business offering property and casualty and life and health coverages to clients worldwide. We write property and casualty reinsurance in North America on a direct basis through General Reinsurance Corporation and internationally through Germany-based General Reinsurance AG and other wholly-owned affiliates. Property and casualty reinsurance is also written in broker markets through Faraday in London. Life and health reinsurance is written in North America through General Re Life Corporation and internationally through General Reinsurance AG. General Re strives to generate underwriting profits in essentially all of its product lines. Our management does not evaluate underwriting performance based upon market share and our underwriters are instructed to reject inadequately priced risks. General Res underwriting results are summarized in the following table. Amounts are in millions.

First Quarter Premiums written Premiums earned Pre-tax underwriting gain (loss) 2015 2014 2015 2014 2015 2014 Property/casualty $ 1,183 $ 1,405 $ 730 $ 788 $ (14 ) $ 101 Life/health 767 766 768 769 (33 ) (21 ) $ 1,950 $ 2,171 $ 1,498 $ 1,557 $ (47 ) $ 80

Property/casualty

Property/casualty premiums written in the first quarter of 2015 declined $222 million (16%), while premiums earned decreased $58 million (7%) compared to the first quarter of 2014. Adjusting for changes in foreign currency exchange rates, premiums written in 2015 declined 4%, while premiums earned increased 2% compared to 2014. Insurance industry capacity to write business remains high and price competition for most property/casualty markets persists. We continue to decline business when we believe prices are inadequate. However, we remain prepared to write more business when appropriate prices can be attained relative to the risks assumed.

In the first quarter, our property/casualty business produced aggregate pre-tax underwriting losses of $14 million in 2015 compared to pre-tax underwriting gains of $101 million in 2014. In the first quarter of 2015, our property business generated pre-tax underwriting losses of $5 million compared to pre-tax underwriting gains of $122 million in the first quarter of 2014. The comparative decline in first quarter underwriting results from property business was driven by an increase in current accident year reported losses. In 2015 and 2014, property results benefitted from reductions of estimated ultimate losses for prior years exposures. The timing and magnitude of catastrophe losses can produce significant volatility in periodic underwriting results.

Our casualty/workers compensation business produced pre-tax underwriting losses of $9 million in the first quarter of 2015 and $21 million in the first quarter of 2014. The pre-tax underwriting losses in each period reflected recurring discount accretion on workers compensation liabilities and amortization of deferred charges on retroactive reinsurance contracts, which aggregated $29 million in 2015 and $41 million in 2014. Underwriting results in each period also included gains from reductions of estimated ultimate losses on prior years business of $66 million in 2015 and $54 million in 2014. Casualty losses tend to be long-tail and it should not be assumed that favorable loss experience in a given period means that the ultimate liability estimates currently established will continue to develop favorably.

26

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (Continued)

InsuranceUnderwriting (Continued)

General Re (Continued)

Life/health

Premiums earned in the first quarter of 2015 were $768 million, relatively unchanged from the first quarter of 2014. However, adjusting for changes in foreign currency exchange rates, premiums earned in the first quarter of 2015 increased $62 million (8%) compared to the first quarter of 2014. In the first quarter of 2015, we generated increased life business across a number of non-U.S. markets, particularly in Canada and Asia as compared to 2014. Our life/health operations produced pre-tax underwriting losses of $33 million in the first quarter of 2015 and $21 million in the first quarter of 2014. In 2015, we increased liabilities for life benefits as a result of the reduction of discount rates in Europe and Australia. In addition, we experienced foreign exchange losses on our international business and greater than expected loss activity from our North America operations. In 2014, our international life/health business incurred increased losses on disability business in Europe and an increase in large claims in the Australian life business. The first quarter underwriting losses in both years also reflected periodic discount accretion primarily on U.S. long-term care liabilities.

Berkshire Hathaway Reinsurance Group

Through BHRG, we underwrite excess-of-loss reinsurance and quota-share coverages on property and casualty risks for insurers and reinsurers worldwide, including property catastrophe insurance and reinsurance. The timing and magnitude of catastrophe losses can produce extraordinary volatility in the periodic underwriting results. BHRG also writes retroactive reinsurance, which provides indemnification of losses and loss adjustment expenses with respect to past loss events arising under property/casualty coverages. BHRGs underwriting activities also include life reinsurance and annuity businesses. BHRGs underwriting results are summarized in the table below. Amounts are in millions.

First Quarter Premiums written Premiums earned Pre-tax underwriting gain (loss) 2015 2014 2015 2014 2015 2014 Property/casualty $ 1,374 $ 1,402 $ 916 $ 1,204 $ 531 $ 291 Retroactive reinsurance  225  225 (126 ) (53 ) Life and annuity 531 593 531 593 54 (55 ) $ 1,905 $ 2,220 $ 1,447 $ 2,022 $ 459 $ 183

Property/casualty

Premiums written in the first quarter of 2015 were $1,374 million, a decline of 2% compared to 2014. In the first quarter of 2015, approximately one-half of property/casualty premiums written were attributable to three contracts. Our volume for most property/casualty coverages, and for property catastrophe coverages in particular, continues to be constrained. Rates, in our view, are generally inadequate. However, we have the capacity and desire to write substantially more business when appropriate pricing can be obtained. Premiums earned in the first quarter of 2015 declined 24% versus 2014, attributable primarily due to lower premiums earned from property quota-share coverages and from the run-off of the Swiss Re quota-share contract.

The property/casualty business generated pre-tax underwriting gains of $531 million in 2015 compared to $291 million in 2014. There were no losses from significant catastrophe events in 2015 or 2014. Underwriting results included foreign currency exchange rate gains of $167 million in the first quarter of 2015 compared to losses of $37 million in 2014. These foreign currency transaction gains and losses relate to certain reinsurance liabilities of U.S.-based subsidiaries (primarily arising under retroactive reinsurance contracts), which are denominated in foreign currencies. In the first quarter of 2015, the U.S. Dollar strengthened over several major currencies, which reduced liabilities in U.S. Dollars and resulted in foreign currency exchange gains.

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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (Continued)

InsuranceUnderwriting (Continued)

Berkshire Hathaway Reinsurance Group (Continued)

Retroactive reinsurance

Retroactive reinsurance contracts provide indemnification of losses and loss adjustment expenses with respect to past loss events, and related claims are generally expected to be paid over long periods of time. Premiums and limits of indemnification are often very large in amount. At the inception of a contract, deferred charge assets are recorded for the excess, if any, of the estimated ultimate losses payable over the premiums earned. Deferred charges are subsequently amortized over the estimated claims payment period using the interest method, which reflects estimates of the timing and amount of loss payments. The original estimates of the timing and amount of loss payments are periodically analyzed against actual experience and revised based on an actuarial evaluation of the expected remaining losses. Amortization charges and deferred charge adjustments resulting from changes to the estimated timing and amount of future loss payments are included in periodic earnings.

Pre-tax underwriting losses from retroactive contracts for the first quarters of 2015 and 2014 were $126 million and $53 million, respectively. There were no significant increases to estimated ultimate losses related to prior years contracts during the first quarters of 2015 or 2014. The increase in underwriting losses in 2015 was primarily related to deferred charge amortization on contracts written in the last half of 2014 and from the impact of gains in the first quarter of 2014 from the commutations of two contracts. Gross unpaid losses from retroactive reinsurance contracts were approximately $23.7 billion at March 31, 2015 and $24.3 billion at December 31, 2014. Unamortized deferred charges related to BHRGs retroactive reinsurance contracts were approximately $7.5 billion at March 31, 2015 and $7.7 billion at December 31, 2014. As previously indicated, the amortization of deferred charge balances will be charged to pre-tax earnings in the future.

Life and annuity

Life and annuity premiums earned in the first quarter of 2015 declined $62 million (10%) compared to 2014. The decline was primarily attributable to lower premiums earned from traditional life reinsurance contracts and structured settlement annuities. The life and annuity business produced pre-tax gains of $54 million in the first quarter of 2015 compared to pre-tax losses of $55 million in 2014, which included foreign currency transaction gains of $85 million and losses of $11 million, respectively, with respect to foreign currency denominated annuity liabilities of our U.S. subsidiaries.

Before foreign currency transaction gains and losses, structured settlement and traditional annuity reinsurance contracts generated underwriting losses of $74 million in the first quarter of 2015 and $63 million in 2014. Generally, all of the premiums under these contracts are received at inception and payments are made over time, often extending for decades. The periodic underwriting losses in 2015 and 2014 were primarily attributable to the recurring impact of the accretion of discounted annuity liabilities. Aggregate annuity liabilities were approximately $7.3 billion at March 31, 2015 and $7.1 billion at December 31, 2014. The life and annuity business also included pre-tax gains of $53 million in the first quarter of 2015 and pre-tax losses of $28 million in 2014 from variable annuity guarantee contracts. The gains in 2015 were primarily attributable to the impact of rising equity markets which resulted in lowering our estimates of liabilities for guaranteed minimum benefits. Periodic results from these contracts can be volatile reflecting changes in returns in investment markets, which impact the underlying insured exposures.

Berkshire Hathaway Primary Group

The Berkshire Hathaway Primary Group (BH Primary) consists of a wide variety of independently managed insurance businesses. These businesses include: Medical Protective Company and Princeton Insurance Company, providers of healthcare malpractice insurance coverages; National Indemnity Companys primary group (NICO Primary), writers of commercial motor vehicle and general liability coverages; U.S. Investment Corporation, whose subsidiaries underwrite specialty insurance coverages; a group of companies referred to as Berkshire Hathaway Homestate Companies (BHHC), providers of commercial multi-line insurance, including workers compensation; Berkshire Hathaway Specialty Insurance (BH Specialty), which concentrates on providing large scale insurance solutions for commercial property and casualty risks; Applied Underwriters, a provider of integrated workers compensation solutions; Berkshire Hathaway GUARD Insurance Companies (GUARD), providers of workers compensation and commercial property and casualty insurance coverage to small and mid-sized businesses; and Central States Indemnity Company, a provider of credit and Medicare Supplement insurance.

Premiums earned in the first quarters of 2015 and 2014 aggregated $1,210 million and $953 million, respectively. The increase in premiums was primarily attributable to volume increases from BH Specialty, NICO Primary, BHHC and GUARD. The BH Primary insurers produced aggregate pre-tax underwriting gains of $175 million in the first quarter of 2015 and $99 million in 2014. Combined loss ratios were 58% in the first quarter of 2015 and 62% in 2014. Overall, the claim environment in recent years has been favorable. However, these primary insurers write primarily liability and workers compensation business, and related claims settlements may occur over lengthy time periods. It should not be assumed that the current claim experience, loss ratios or underwriting results will continue into the future.

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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (Continued)

InsuranceInvestment Income

A summary of net investment income generated by our insurance operations follows. Amounts are in millions.

First Quarter 2015 2014 Investment income before taxes and noncontrolling interests $ 1,087 $ 946 Income taxes and noncontrolling interests 212 226 Net investment income $ 875 $ 720

Investment income consists of interest and dividends earned on cash and investments of our insurance businesses. Pre-tax investment income in the first quarter of 2015 was $1,087 million, an increase of $141 million (15%) over 2014. The increase was attributable to an increase in dividend income from equity securities, partially offset by lower interest earned from fixed maturity securities. In 2015, investment income included dividends from our investment in Restaurant Brands International, Inc. 9% Preferred Stock ($3 billion stated value), which was acquired in December 2014. Our insurance businesses continue to hold significant cash and cash equivalent balances (approximately $42.4 billion as of March 31, 2015) earning very low yields. We believe that maintaining ample liquidity is paramount and we insist on safety over yield with respect to cash and cash equivalents. Invested assets derive from shareholder capital and reinvested earnings as well as net liabilities under insurance contracts or float. The major components of float are unpaid losses, life, annuity and health benefit liabilities, unearned premiums and other liabilities to policyholders less premium and reinsurance receivables, deferred charges assumed under retroactive reinsurance contracts and deferred policy acquisition costs. Float approximated $83.5 billion at March 31, 2015 and $84.0 billion at December 31, 2014.

A summary of cash and investments held in our insurance businesses follows. Other investments include our investments in The Dow Chemical Company, Bank of America Corporation and Restaurant Brands International, Inc. See Note 6 to the accompanying Consolidated Financial Statements. Amounts are in millions.

March 31,

2015 December 31,

2014 Cash and cash equivalents $ 42,382 $ 42,760 Equity securities 112,703 114,876 Fixed maturity securities 25,090 26,010 Other investments 15,208 16,346 $195,383 $199,992

Fixed maturity investments as of March 31, 2015 were as follows. Amounts are in millions.

Amortized

cost Unrealized

gains/losses Carrying

value U.S. Treasury, U.S. government corporations and agencies $ 3,381 $ 19 $ 3,400 States, municipalities and political subdivisions 1,647 82 1,729 Foreign governments 10,305 224 10,529 Corporate bonds, investment grade 5,342 626 5,968 Corporate bonds, non-investment grade 1,521 425 1,946 Mortgage-backed securities 1,333 185 1,518 $ 23,529 $ 1,561 $ 25,090

U.S. government obligations are rated AA+ or Aaa by the major rating agencies and approximately 87% of all state, municipal and political subdivisions, foreign government obligations and mortgage-backed securities were rated AA or higher. Non-investment grade securities represent securities that are rated below BBB- or Baa3. Foreign government securities include obligations issued or unconditionally guaranteed by national or provincial government entities.

29

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Railroad (Burlington Northern Santa Fe)

Burlington Northern Santa Fe Corporation (BNSF) operates one of the largest railroad systems in North America with approximately 32,500 route miles of track in 28 states and also operates in three Canadian provinces. BNSFs major business groups are classified by type of product shipped and include consumer products, coal, industrial products and agricultural products. Earnings of BNSF are summarized below (in millions).

First Quarter 2015 2014 Revenues $ 5,602 $ 5,447 Operating expenses: Compensation and benefits 1,338 1,218 Fuel 713 1,159 Purchased services 648 653 Depreciation and amortization 496 515 Equipment rents, materials and other 518 537 Total operating expenses 3,713 4,082 Interest expense 217 196 3,930 4,278 Pre-tax earnings 1,672 1,169 Income taxes 627 445 Net earnings $ 1,045 $ 724

Consolidated revenues in the first quarter of 2015 were approximately $5.6 billion, representing an increase of $155 million (3%) over 2014. The overall increase in revenues reflected a 1% increase in cars/units handled and a 1% increase in average revenue per car/unit, which reflected changes in business mix, partially offset by a decline in fuel surcharges of $220 million (31%) primarily due to lower fuel prices. Pre-tax earnings in the first quarter of 2015 were $1.7 billion, an increase of $503 million (43%) over 2014. Results in the first quarter of 2015 benefitted from improved operating performance, volume increases in certain product lines and the favorable impact of lower fuel prices. Changes in fuel surcharges reflected in revenues generally lag the changes in fuel costs, and the relative impact on first quarter earnings was greater than is expected over the remainder of 2015.

Our operating performance in 2014 was substandard as we experienced significant service related challenges over most of the year. We attribute operational improvements in 2015 to capacity added in 2014 through capital investments for line expansion, system improvement projects, additional equipment, new employee hires and other operational initiatives, as well as from more favorable winter weather conditions. The impact of these improvements was partially offset by lower intermodal container and trailer volume, primarily attributable to congestion on the U.S. West Coast resulting from port labor disputes. We plan to continue our capital expansion and operational improvement initiatives in 2015 in order to meet customer demand and improve and maintain service levels.

In the first quarter of 2015, revenues from industrial products were $1.4 billion, a 2% increase over 2014. The increase reflected a 3% increase in volume, partially offset by lower average revenue per car/unit. Revenues from agricultural products increased 19% to approximately $1.2 billion, attributable to a 15% increase in volume, as well as from rate and product mix changes. Coal revenues during the first quarter of 2015 increased 4% to $1.3 billion, reflecting a 7% increase in volume, partially offset by lower average rates. Revenues from consumer products during the first quarter of 2015 were $1.5 billion, a decline of 10% from 2014. The decline reflected a significant decrease in international intermodal volume due to the aforementioned congestion at U.S. West Coast ports and from lower average revenues per car for both international and domestic intermodal business. As a result of tentative labor agreements reached at those ports, our intermodal volumes increased in the latter part of the first quarter.

Operating expenses in the first quarter of 2015 were $3.7 billion, a decrease of $369 million (9%) compared to the first quarter of 2014. In 2015, operating expenses as a percentage of revenues declined 8.6 percentage points to 66.3%. Compensation and benefits expenses increased $120 million (10%), primarily due to increased employment levels and wage rates. Fuel expenses declined $446 million (38%) in 2015 due to significantly lower average fuel prices and improved efficiency, partially offset by higher volumes. In 2015, depreciation and amortization expense declined $19 million (4%) as a result of lower capitalized software amortization expenses, partially offset by increased depreciation expense on increased levels of railroad assets in service.

Interest expense in the first qua