Fourth Quarter Earnings 2022
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NEWS RELEASE |
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FOR IMMEDIATE RELEASE |
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Berkshire's operating results for the fourth quarter and full year of 2022 and 2021 are summarized in the following paragraphs. However, we urge investors and reporters to read our 2022 Annual Report, which has been posted at www.berkshirehathaway.com.The limited information that follows in this press release is not adequate for making an informed investment judgment.
Earnings (losses) of
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Fourth Quarter |
Full Year |
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2022 |
2021 |
2022 |
2021 |
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Net earnings (loss) attributable to Berkshire shareholders |
$ |
18,164 |
$ |
39,646 |
$ |
(22,819) |
$ |
89,795 |
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Net earnings (loss) includes: |
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Investment and derivative gains (losses) |
11,455 |
32,361 |
(53,612) |
62,340 |
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Operating earnings |
6,709 |
7,285 |
30,793 |
27,455 |
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Net earnings (loss) attributable to Berkshire shareholders |
$ |
18,164 |
$ |
39,646 |
$ |
(22,819) |
$ |
89,795 |
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Net earnings (loss) per average equivalent Class A Share |
$ |
12,412 |
$ |
26,690 |
$ |
(15,535) |
$ |
59,460 |
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Net earnings (loss) per average equivalent Class |
$ |
8.27 |
$ |
17.79 |
$ |
(10.36) |
$ |
39.64 |
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Average equivalent Class A shares outstanding |
1,463,422 |
1,485,452 |
1,468,876 |
1,510,180 |
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Average equivalent Class B shares outstanding |
2,195,133,576 |
2,228,178,320 |
2,203,313,642 |
2,265,269,867 |
Note: Per share amounts for the Class B shares are 1/1,500th of those shown for the Class A.
Generally Accepted Accounting Principles ("GAAP") require that we include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our earnings statements. In the table above, investment gains (losses) in 2022 include gains of
The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings (losses) per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.
An analysis of Berkshire's operating earnings follows (dollar amounts are in millions).
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Fourth Quarter |
Full Year |
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2022 |
2021 |
2022 |
2021 |
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Insurance-underwriting |
$ |
244 |
$ |
372 |
$ |
(90) |
$ |
728 |
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Insurance-investment income |
2,000 |
1,219 |
6,484 |
4,807 |
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Railroad |
1,469 |
1,685 |
5,946 |
5,990 |
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Utilities and energy |
739 |
598 |
3,904 |
3,572 |
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Other controlled businesses |
2,991 |
2,791 |
12,512 |
11,120 |
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Non controlled businesses* |
718 |
174 |
1,528 |
804 |
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Other** |
(1,452) |
446 |
509 |
434 |
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Operating earnings |
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- Includes certain businesses in which Berkshire had between a 20% and 50% ownership interest.
- Includes foreign currency exchange losses related to non-
U.S. Dollar denominated debt of approximately$1.2 billion in the fourth quarter and gains of approximately$1.3 billion in the full year in 2022 and in 2021 includes foreign currency exchange gains of approximately$279 million in the fourth quarter and approximately$955 million in the full year.
Approximately
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP figures in accordance with Regulation G are included herein.
Berkshire presents its results in the way it believes will be most meaningful and useful, as well as most transparent, to the investing public and others who use Berkshire's financial information. That presentation includes the use of certain non-GAAP financial measures. In addition to the GAAP presentations of net earnings, Berkshire shows operating earnings defined as net earnings exclusive of investment and derivative gains/losses and impairments of goodwill and intangible assets.
Although the investment of insurance and reinsurance premiums to generate investment income and investment gains or losses is an integral part of Berkshire's operations, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our periodic earnings statements. In sum, investment gains/losses for any particular period are not indicative of quarterly business performance.
About Berkshire
Cautionary Statement
Certain statements contained in this press release are "forward looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.
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