Berkshire Hathaway Inc. News Release
26 February 2017 - 12:02AM
Business Wire
Berkshire Hathaway Inc. (BRK.A; BRK.B) –
We show below summary financial data for the fourth quarter and
full year. However, we urge investors and reporters to carefully
read our Annual Report, which has been posted on the Internet at
www.berkshirehathaway.com. The limited information that follows in
this press release is totally inadequate for making an informed
investment judgment or for an evaluation of 2016 business
performance. Earnings are stated on an after-tax basis. (Dollar
amounts are in millions, except for per share amounts).
Fourth
Quarter
Full Year
2016
2015
2016
2015
Operating earnings
$ 4,382
$ 4,673 $
17,577 $ 17,358 Investment
and derivative gains/losses Investment gains 1,200 399
6,009
*
6,092
**
Derivative gains/losses
704
406 488 633
1,904 805
6,497 6,725 Net earnings
attributable to Berkshire shareholders
$
6,286 $ 5,478 $
24,074 $ 24,083
* Includes after-tax gains of
approximately $2.7 billion from the disposition of preferred stock
in Wrigley and Kraft Heinz and conversion of preferred stock of Dow
Chemical. Also includes after-tax gain of approximately
$1.9 billion from the exchange of Procter & Gamble common stock
for Duracell.
** Includes after-tax non-cash holding
gain of $4.4 billion that was recognized in connection with the
merger of Kraft Foods and H.J. Heinz.
Operating earnings per Class A equivalent share $ 2,665 $
2,843 $ 10,693 $ 10,564 Investment and derivative gains per Class A
equivalent share
1,158 490
3,952 4,092
Net earnings per Class A equivalent share
attributable to Berkshire shareholders
$
3,823
$
3,333
$
14,645
$
14,656
Average Class A equivalent shares outstanding 1,644,157
1,643,373 1,643,826 1,643,183 Book value per Class A equivalent
share at December 31
$ 172,108
$ 155,501
Note: Per share amounts for the Class
B shares are 1/1,500th those shown for the Class A.
An analysis of Berkshire’s operating
earnings follows (dollar amounts are in millions).
Fourth
Quarter
Full Year
2016
2015
2016
2015
Insurance-underwriting $ 548 $ 306 $ 1,370 $ 1,162
Insurance-investment income 889 1,033 3,636 3,725 Railroad,
utilities and energy businesses 1,425 1,507 5,856 6,380 Other
businesses 1,553 1,490 7,058 6,061 Other
(33 )
337 (343 )
30 Operating earnings
$
4,382 $ 4,673 $
17,577 $ 17,358
In the table on the prior page (which, as noted, reports
after-tax results), we give investment and derivative gains
(losses) lines of their own because the amounts of these in any
given quarter or year are often meaningless.
At December 31, 2016, our book value had increased by 10.7%
since yearend 2015 to $172,108 per Class A equivalent share.
Insurance float (the net liabilities we assume under insurance
contracts) at December 31, 2016 was approximately $91.6
billion.
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.
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, investing activities are
independent of the insurance underwriting process. Moreover, under
applicable GAAP accounting requirements, losses can be created as
the result of other-than-temporary declines in value without actual
realization or when certain types of investments are
marked-to-market through earnings. In sum, investment and
derivative gains/losses for any particular period are not
indicative of quarterly business performance.
About Berkshire
Berkshire Hathaway and its subsidiaries engage in diverse
business activities including property and casualty insurance and
reinsurance, utilities and energy, freight rail transportation,
finance, manufacturing, retailing and services. Common stock of the
company is listed on the New York Stock Exchange, trading symbols
BRK.A and BRK.B.
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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version on businesswire.com: http://www.businesswire.com/news/home/20170225005005/en/
Berkshire Hathaway Inc.Marc D. Hamburg, 402-346-1400
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