| Business segment data |
Notes to Consolidated Financial Statements (26)Business segment data Berkshire’s chief operating decision maker is the Chief Executive Officer, who is ultimately responsible for significant capital allocation and investment decisions, as well as evaluating the operating performance of the operating segments. Berkshire’s numerous and diverse businesses are managed on an unusually decentralized basis. These businesses are aggregated into operating segments in a manner that reflects how Berkshire views the business activities. Certain operating segments are aggregated into reportable business segments based upon similar products or product lines, marketing strategies, and selling and distribution characteristics. Berkshire’s reportable business segments are as follows.
|
|
|
Business Segment |
|
Principal Business Activities |
Insurance: |
|
|
GEICO |
|
Underwriting primarily private passenger automobile insurance policies |
|
|
|
Berkshire Hathaway Primary Group (“BH Primary”) |
|
Underwriting multiple lines of property and casualty insurance policies, primarily commercial accounts |
|
|
|
Berkshire Hathaway Reinsurance Group (“BHRG”) |
|
Underwriting excess-of-loss, quota-share and facultative reinsurance contracts |
|
|
|
Burlington Northern Santa Fe (“BNSF”) |
|
Operator of a large freight rail transportation system in North America |
|
|
|
Berkshire Hathaway Energy (“BHE”) |
|
Operator of regulated electric and gas utilities, natural gas pipelines and other power generation and distribution businesses, and real estate brokerage activities |
|
|
|
Manufacturing |
|
Manufacturers and distributors of numerous industrial, consumer and building products, as well as home building and related financial services |
|
|
|
Service and retailing |
|
Providers of a variety of services, including shared aircraft ownership programs, aviation pilot training, electronic components distribution, and over-the-road trailer and furniture leasing and retailing operations, including automobile dealerships and home furnishings retailers |
|
|
|
McLane Company (“McLane”) |
|
Wholesale distributor of food and non-food items to retailers and restaurants |
|
|
|
Pilot Travel Centers (“Pilot”) (1) |
|
Operator of retail travel centers in North America and a marketer of fuel on a wholesale basis |
—————— (1) Pilot’s statement of earnings and capital expenditure data in 2023 is for the eleven months ending December 31, 2023. Earnings for the month of January 2023 were determined under the equity method and included in equity method earnings. The tabular information that follows shows data of Berkshire’s business segments reconciled to amounts reflected in our Consolidated Financial Statements. Intersegment transactions are not eliminated from segment results when those transactions are considered in assessing the results of the respective segments and are not considered to be material. Furthermore, investment gains and losses, goodwill and indefinite-lived intangible asset impairments and amortization of certain acquisition accounting adjustments or certain other corporate income and expense items are not considered in assessing the financial performance of operating businesses. Collectively, these items are included in corporate, eliminations and other to reconcile segment totals to consolidated amounts. The cost and expense information provided is based on the information regularly provided to the chief operating decision maker. Given the number and diversity of Berkshire’s operating segments and the differences in revenue streams and cost structures, there are wide variances in the form, content and levels of such expense information significant to the business. Expenses considered significant for one operating segment may not be significant in others. With respect to insurance underwriting, the chief operating decision maker considers pre-tax underwriting earnings to allocate resources and capital, together with perceived risks and opportunities in the insurance markets that affect rates and risks of loss. Typically, there are no budgeted or forecasted premiums or underwriting results. For most non-insurance businesses, pre-tax earnings are considered in allocating resources and capital, although income taxes are also considered at BHE, given the magnitude of production tax credits associated with wind-powered electricity generation investments and the related impacts from regulation. The chief operating decision maker generally considers actual operating results versus budgets or forecasts, as well as unique perceived risks and opportunities associated with the individual operating businesses. Notes to Consolidated Financial Statements (26)Business segment data We view our insurance segment as possessing two distinct activities – underwriting and investing. Underwriting decisions are the responsibility of the underwriting managers. Accordingly, performance of underwriting operations is evaluated without any allocation of investment income. As such, the insurance net investment income is presented in the aggregate as a separate component of insurance segment operating earnings. Earnings data of our business segments for each of the three years ended December 31, 2025 are shown in the following tables (in millions).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
Insurance |
GEICO |
|
BH Primary |
|
BHRG |
|
Total Underwriting |
|
Investment Income |
|
Total |
|
Premiums earned and investment income |
$ |
44,481 |
|
$ |
18,713 |
|
$ |
25,708 |
|
$ |
88,902 |
|
$ |
15,310 |
|
$ |
104,212 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Losses and LAE |
|
32,144 |
|
|
12,519 |
|
|
12,644 |
|
|
57,307 |
|
|
— |
|
|
57,307 |
|
Life, annuity and health benefits |
|
— |
|
|
— |
|
|
4,379 |
|
|
4,379 |
|
|
— |
|
|
4,379 |
|
Other segment items |
|
5,513 |
|
|
5,409 |
|
|
6,834 |
|
|
17,756 |
|
|
49 |
|
|
17,805 |
|
Total costs and expenses |
|
37,657 |
|
|
17,928 |
|
|
23,857 |
|
|
79,442 |
|
|
49 |
|
|
79,491 |
|
Earnings before income taxes |
$ |
6,824 |
|
$ |
785 |
|
$ |
1,851 |
|
$ |
9,460 |
|
$ |
15,261 |
|
$ |
24,721 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
Insurance |
GEICO |
|
BH Primary |
|
BHRG |
|
Total Underwriting |
|
Investment Income |
|
Total |
|
Premiums earned and investment income |
$ |
42,252 |
|
$ |
18,733 |
|
$ |
27,272 |
|
$ |
88,257 |
|
$ |
16,812 |
|
$ |
105,069 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Losses and LAE |
|
30,331 |
|
|
12,666 |
|
|
13,189 |
|
|
56,186 |
|
|
— |
|
|
56,186 |
|
Life, annuity and health benefits |
|
— |
|
|
— |
|
|
3,858 |
|
|
3,858 |
|
|
— |
|
|
3,858 |
|
Other segment items |
|
4,108 |
|
|
5,212 |
|
|
7,488 |
|
|
16,808 |
|
|
64 |
|
|
16,872 |
|
Total costs and expenses |
|
34,439 |
|
|
17,878 |
|
|
24,535 |
|
|
76,852 |
|
|
64 |
|
|
76,916 |
|
Earnings before income taxes |
$ |
7,813 |
|
$ |
855 |
|
$ |
2,737 |
|
$ |
11,405 |
|
$ |
16,748 |
|
$ |
28,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
Insurance |
GEICO |
|
BH Primary |
|
BHRG |
|
Total Underwriting |
|
Investment Income |
|
Total |
|
Premiums earned and investment income |
$ |
39,264 |
|
$ |
17,129 |
|
$ |
27,010 |
|
$ |
83,403 |
|
$ |
11,619 |
|
$ |
95,022 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Losses and LAE |
|
31,814 |
|
|
11,224 |
|
|
14,149 |
|
|
57,187 |
|
|
— |
|
|
57,187 |
|
Life, annuity and health benefits |
|
— |
|
|
— |
|
|
4,029 |
|
|
4,029 |
|
|
— |
|
|
4,029 |
|
Other segment items |
|
3,815 |
|
|
4,531 |
|
|
6,928 |
|
|
15,274 |
|
|
38 |
|
|
15,312 |
|
Total costs and expenses |
|
35,629 |
|
|
15,755 |
|
|
25,106 |
|
|
76,490 |
|
|
38 |
|
|
76,528 |
|
Earnings before income taxes |
$ |
3,635 |
|
$ |
1,374 |
|
$ |
1,904 |
|
$ |
6,913 |
|
$ |
11,581 |
|
$ |
18,494 |
|
Other segment items related to insurance underwriting include commissions and brokerage expenses and other insurance underwriting expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BNSF |
|
|
|
2025 |
|
2024 |
|
2023 |
|
Revenues |
|
|
|
$ |
23,533 |
|
$ |
23,572 |
|
$ |
23,876 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
|
|
5,531 |
|
|
5,872 |
|
|
5,551 |
|
Fuel |
|
|
|
|
3,011 |
|
|
3,267 |
|
|
3,684 |
|
Depreciation and amortization |
|
|
|
|
2,722 |
|
|
2,621 |
|
|
2,627 |
|
Interest expense |
|
|
|
|
1,098 |
|
|
1,078 |
|
|
1,048 |
|
Other segment items |
|
|
|
|
3,996 |
|
|
4,086 |
|
|
4,352 |
|
Total costs and expenses |
|
|
|
|
16,358 |
|
|
16,924 |
|
|
17,262 |
|
Earnings before income taxes |
|
|
|
$ |
7,175 |
|
$ |
6,648 |
|
$ |
6,614 |
|
Other segment items of BNSF include purchased services, equipment rents and materials and other expenses. Notes to Consolidated Financial Statements (26)Business segment data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BHE |
|
|
|
2025 |
|
2024 |
|
2023 |
|
Revenues |
|
|
|
$ |
26,297 |
|
$ |
26,348 |
|
$ |
26,008 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
Energy cost of sales |
|
|
|
|
6,346 |
|
|
6,616 |
|
|
7,057 |
|
Energy operations and maintenance |
|
|
|
|
5,445 |
|
|
5,470 |
|
|
6,456 |
|
Energy depreciation and amortization |
|
|
|
|
4,180 |
|
|
3,957 |
|
|
3,960 |
|
Real estate operating costs and expenses |
|
|
|
|
4,302 |
|
|
4,509 |
|
|
4,316 |
|
Interest expense |
|
|
|
|
2,642 |
|
|
2,528 |
|
|
2,283 |
|
Other segment items |
|
|
|
|
1,040 |
|
|
976 |
|
|
996 |
|
Total costs and expenses |
|
|
|
|
23,955 |
|
|
24,056 |
|
|
25,068 |
|
Earnings before income taxes |
|
|
|
$ |
2,342 |
|
$ |
2,292 |
|
$ |
940 |
|
Other segment items of BHE primarily consist of property taxes and other expenses. Energy operations and maintenance includes losses associated with the 2020 and 2022 Wildfires. See Note 27.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing |
|
Service and Retailing |
|
|
2025 |
|
2024 |
|
2023 |
|
2025 |
|
2024 |
|
2023 |
|
Revenues |
$ |
78,487 |
|
$ |
77,231 |
|
$ |
75,405 |
|
$ |
42,647 |
|
$ |
39,874 |
|
$ |
39,996 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales and services |
|
50,937 |
|
|
50,702 |
|
|
50,389 |
|
|
25,579 |
|
|
23,818 |
|
|
23,915 |
|
Cost of leasing |
|
1,174 |
|
|
1,142 |
|
|
1,051 |
|
|
6,453 |
|
|
5,917 |
|
|
5,011 |
|
Interest expense |
|
1,211 |
|
|
934 |
|
|
784 |
|
|
113 |
|
|
118 |
|
|
101 |
|
Other segment items |
|
12,594 |
|
|
12,558 |
|
|
11,736 |
|
|
6,463 |
|
|
6,321 |
|
|
6,248 |
|
Total costs and expenses |
|
65,916 |
|
|
65,336 |
|
|
63,960 |
|
|
38,608 |
|
|
36,174 |
|
|
35,275 |
|
Earnings before income taxes |
$ |
12,571 |
|
$ |
11,895 |
|
$ |
11,445 |
|
$ |
4,039 |
|
$ |
3,700 |
|
$ |
4,721 |
|
Other segment items of manufacturing, service and retailing segments primarily consist of selling, general and administrative expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
McLane |
|
Pilot |
|
|
2025 |
|
2024 |
|
2023 |
|
2025 |
|
2024 |
|
2023 |
|
Revenues |
$ |
50,998 |
|
$ |
51,907 |
|
$ |
52,607 |
|
$ |
42,198 |
|
$ |
46,891 |
|
$ |
51,739 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales and services |
|
46,572 |
|
|
47,604 |
|
|
48,495 |
|
|
38,003 |
|
|
42,591 |
|
|
47,505 |
|
Depreciation and amortization |
|
214 |
|
|
217 |
|
|
208 |
|
|
1,095 |
|
|
1,012 |
|
|
796 |
|
Other segment items |
|
3,536 |
|
|
3,452 |
|
|
3,449 |
|
|
2,910 |
|
|
2,674 |
|
|
2,470 |
|
Total costs and expenses |
|
50,322 |
|
|
51,273 |
|
|
52,152 |
|
|
42,008 |
|
|
46,277 |
|
|
50,771 |
|
Earnings before income taxes |
$ |
676 |
|
$ |
634 |
|
$ |
455 |
|
$ |
190 |
|
$ |
614 |
|
$ |
968 |
|
Other segment items of McLane include general and administrative expenses. Other segment items of Pilot primarily consist of store operating, interest and general and administrative expenses. Reconciliations of revenues and earnings before income taxes of our business segments to the consolidated amounts for each of the three years ended December 31, 2025 follows (in millions).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
Earnings before income taxes |
|
|
2025 |
|
2024 |
|
2023 |
|
2025 |
|
2024 |
|
2023 |
|
Total operating businesses |
$ |
368,372 |
|
$ |
370,892 |
|
$ |
364,653 |
|
$ |
51,714 |
|
$ |
53,936 |
|
$ |
43,637 |
|
Investment gains (losses) |
|
— |
|
|
— |
|
|
— |
|
|
39,078 |
|
|
52,799 |
|
|
74,855 |
|
Equity method earnings (losses) |
|
— |
|
|
— |
|
|
— |
|
|
(9,590 |
) |
|
1,841 |
|
|
1,973 |
|
Corporate, eliminations and other |
|
3,072 |
|
|
541 |
|
|
(171 |
) |
|
1,257 |
|
|
1,800 |
|
|
(299 |
) |
|
$ |
371,444 |
|
$ |
371,433 |
|
$ |
364,482 |
|
$ |
82,459 |
|
$ |
110,376 |
|
$ |
120,166 |
|
Notes to Consolidated Financial Statements (26)Business segment data Additional segment data for each of the three most recent years follows (in millions).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
Income tax expense (benefit) |
|
Business segments |
2025 |
|
2024 |
|
2023 |
|
2025 |
|
2024 |
|
2023 |
|
Insurance |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
4,949 |
|
$ |
5,462 |
|
$ |
3,497 |
|
BNSF |
|
1,098 |
|
|
1,078 |
|
|
1,048 |
|
|
1,699 |
|
|
1,617 |
|
|
1,527 |
|
BHE |
|
2,642 |
|
|
2,528 |
|
|
2,283 |
|
|
(1,785 |
) |
|
(1,871 |
) |
|
(2,022 |
) |
Manufacturing |
|
1,211 |
|
|
934 |
|
|
784 |
|
|
2,529 |
|
|
2,598 |
|
|
2,487 |
|
Service and retailing |
|
113 |
|
|
118 |
|
|
101 |
|
|
982 |
|
|
912 |
|
|
1,135 |
|
McLane |
|
32 |
|
|
22 |
|
|
— |
|
|
171 |
|
|
152 |
|
|
117 |
|
Pilot |
|
227 |
|
|
302 |
|
|
414 |
|
|
27 |
|
|
— |
|
|
169 |
|
|
|
5,323 |
|
|
4,982 |
|
|
4,630 |
|
|
8,572 |
|
|
8,870 |
|
|
6,910 |
|
Reconciliation to consolidated amount |
|
|
|
|
|
|
|
|
|
|
|
|
Investment gains (losses) |
|
— |
|
|
— |
|
|
— |
|
|
8,316 |
|
|
11,179 |
|
|
15,930 |
|
Equity method earnings (losses) |
|
— |
|
|
— |
|
|
— |
|
|
(2,234 |
) |
|
322 |
|
|
223 |
|
Corporate, eliminations and other |
|
(254 |
) |
|
218 |
|
|
373 |
|
|
545 |
|
|
444 |
|
|
(44 |
) |
|
$ |
5,069 |
|
$ |
5,200 |
|
$ |
5,003 |
|
$ |
15,199 |
|
$ |
20,815 |
|
$ |
23,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
Depreciation and amortization |
|
Business segments |
2025 |
|
2024 |
|
2023 |
|
2025 |
|
2024 |
|
2023 |
|
Insurance |
$ |
109 |
|
$ |
99 |
|
$ |
68 |
|
$ |
438 |
|
$ |
411 |
|
$ |
401 |
|
BNSF |
|
3,796 |
|
|
3,690 |
|
|
3,920 |
|
|
2,722 |
|
|
2,621 |
|
|
2,627 |
|
BHE |
|
10,589 |
|
|
9,013 |
|
|
9,148 |
|
|
4,220 |
|
|
4,003 |
|
|
4,010 |
|
Manufacturing |
|
2,681 |
|
|
2,779 |
|
|
2,714 |
|
|
2,464 |
|
|
2,422 |
|
|
2,290 |
|
Service and retailing |
|
2,604 |
|
|
2,360 |
|
|
2,590 |
|
|
1,643 |
|
|
1,522 |
|
|
1,335 |
|
McLane |
|
207 |
|
|
236 |
|
|
264 |
|
|
214 |
|
|
217 |
|
|
208 |
|
Pilot |
|
941 |
|
|
799 |
|
|
705 |
|
|
1,095 |
|
|
1,012 |
|
|
796 |
|
|
$ |
20,927 |
|
$ |
18,976 |
|
$ |
19,409 |
|
|
12,796 |
|
|
12,208 |
|
|
11,667 |
|
Reconciliation to consolidated amount |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate, eliminations and other |
|
|
|
|
|
|
|
680 |
|
|
647 |
|
|
819 |
|
|
|
|
|
|
|
|
$ |
13,476 |
|
$ |
12,855 |
|
$ |
12,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill at year-end |
|
|
Identifiable assets at year-end |
|
Business segments |
|
2025 |
|
2024 |
|
|
2025 |
|
2024 |
|
Insurance |
|
$ |
16,557 |
|
$ |
16,557 |
|
|
$ |
571,145 |
|
$ |
539,884 |
|
BNSF |
|
|
15,351 |
|
|
15,351 |
|
|
|
82,532 |
|
|
80,813 |
|
BHE |
|
|
11,778 |
|
|
11,669 |
|
|
|
136,515 |
|
|
128,276 |
|
Manufacturing |
|
|
26,928 |
|
|
27,716 |
|
|
|
122,132 |
|
|
119,860 |
|
Service and retailing |
|
|
5,682 |
|
|
5,878 |
|
|
|
39,124 |
|
|
37,198 |
|
McLane |
|
|
232 |
|
|
232 |
|
|
|
7,135 |
|
|
7,165 |
|
Pilot |
|
|
6,546 |
|
|
6,477 |
|
|
|
18,828 |
|
|
19,652 |
|
|
|
$ |
83,074 |
|
$ |
83,880 |
|
|
|
977,411 |
|
|
932,848 |
|
Reconciliation to consolidated amount |
|
|
|
|
|
|
|
|
|
|
Corporate and other |
|
|
|
|
|
|
|
161,691 |
|
|
137,153 |
|
Goodwill |
|
|
|
|
|
|
|
83,074 |
|
|
83,880 |
|
|
|
|
|
|
|
|
$ |
1,222,176 |
|
$ |
1,153,881 |
|
Notes to Consolidated Financial Statements (26)Business segment data Insurance premiums written by geographic region (based upon the domicile of the insured or reinsured) are summarized below (in millions).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property/Casualty |
|
|
Life/Health |
|
|
2025 |
|
2024 |
|
2023 |
|
|
2025 |
|
2024 |
|
2023 |
|
United States |
$ |
72,461 |
|
$ |
71,723 |
|
$ |
67,831 |
|
|
$ |
1,424 |
|
$ |
1,358 |
|
$ |
1,285 |
|
Western Europe |
|
5,002 |
|
|
5,252 |
|
|
5,014 |
|
|
|
1,597 |
|
|
1,407 |
|
|
1,323 |
|
Asia Pacific |
|
4,592 |
|
|
5,043 |
|
|
5,306 |
|
|
|
1,469 |
|
|
1,548 |
|
|
1,760 |
|
All other |
|
2,019 |
|
|
1,668 |
|
|
2,188 |
|
|
|
812 |
|
|
694 |
|
|
725 |
|
|
$ |
84,074 |
|
$ |
83,686 |
|
$ |
80,339 |
|
|
$ |
5,302 |
|
$ |
5,007 |
|
$ |
5,093 |
|
Consolidated sales, service and leasing revenues were $209.6 billion in 2025, $211.6 billion in 2024 and $215.6 billion in 2023. Sales, service and leasing revenues attributable to the United States were 87% in 2025, 86% in 2024 and 87% in 2023 of such amounts. The remainder of sales, service and leasing revenues were primarily in Europe, the Asia-Pacific region and Canada. Railroad, utilities and energy revenues were $49.7 billion in 2025 and $49.8 billion in 2024 and 2023. Railroad, utilities and energy revenues attributable to the United States were 96% in 2025, 95% in 2024 and 96% in 2023 of such amounts. At December 31, 2025, approximately 91% of our consolidated property, plant and equipment and equipment held for lease was located in the United States with the remainder primarily in the United Kingdom and Canada.
|