Net profit greatly reduced? Let's look at Berkshire management's analysis of the financial condition and operating results for Q1 2025.

In the first quarter of 2025, Berkshire Hathaway's revenue was $89.725 billion, essentially flat compared to the same period last year at $89.869 billion. Net profit was $4.603 billion, a 64% decrease year-on-year, mainly due to reduced investment income. Insurance underwriting revenue was $1.34 billion, with profits nearly halved due to the impact of the Southern California wildfires. Stock investment net losses were $5.038 billion, compared to a profit of $1.48 billion in the same period last year. 69% of equity investments were concentrated in five major companies such as American Express, and have been net sold for ten consecutive quarters. As of the end of March, cash reserves reached $347.7 billion, reaching a new historical high, with no stock buybacks in the first quarter. I. Berkshire Hathaway Company's First Quarter Financial Report News Release The earnings summary of Berkshire Hathaway Company and its consolidated subsidiaries for the first quarters of 2025 and 2024 are as follows. Earnings are calculated after tax. (All dollar amounts are in millions except per share amounts) Generally Accepted Accounting Principles ("GAAP") require us to include changes in unrealized gains/losses on equity investments as part of investment income (loss) on the income statement. In the table above, investment income (loss) includes a loss of approximately $7.4 billion in the first quarter of 2025, and a loss of approximately $9.7 billion in the first quarter of 2024, resulting from changes in unrealized gains amounts in our equity investments held in the first quarters of 2025 and 2024. Investment income (loss) also includes after-tax realized gains of $2.4 billion from investments sold in the first quarter of 2025, and $11.2 billion in the first quarter of 2024. The amount of investment income (loss) in any given quarter does not necessarily have practical significance, and resulting earnings per share data could be highly misleading to investors unfamiliar with accounting standards. The analysis of Berkshire operating income is as follows: * Includes approximately $713 million in foreign exchange losses in 2025, and approximately $597 million in foreign exchange gains related to non-U.S. dollar denominated debt in 2024. Also includes interest and dividend income of approximately $869 million in 2025, and $303 million in 2024 related to U.S. Treasury bonds, Berkshire insurance subsidiaries, or certain non-insurance operating companies that Berkshire does not directly hold shares in. As of March 31, 2025, the number of equivalent shares issued for Class A common stock was 1,438,223 shares. As of March 31, 2025, insurance float (net liabilities assumed under insurance contracts) was approximately $173 billion, an increase of $20 billion since the end of 2024. Use of Non-GAAP Financial Metrics This news release contains certain non-GAAP financial metrics. A table reconciling these metrics with the most comparable GAAP data is included in this document. Berkshire presents its results in a manner it considers most meaningful, useful, and transparent to the public investors and other individuals using Berkshire financial information. This presentation includes the use of certain non-GAAP financial metrics. In addition to reporting net income according to GAAP, Berkshire also presents operating earnings, which is net income after deducting investment income (loss). Although investment income and losses from insurance and reinsurance premiums contribute to generating investment income and losses, they are independent of the insurance underwriting process. Furthermore, as previously mentioned, under applicable GAAP accounting requirements, changes in unrealized gains/losses on equity investments must be included as part of investment income (loss) on a regular income statement. In summary, investment income (loss) for any specific period may not reflect quarterly business performance. About Berkshire Berkshire Hathaway Company and its subsidiaries engage in various business activities including insurance and reinsurance, railroad freight, utilities and energy, manufacturing services, and retail. The company's common stock is listed on the New York Stock Exchange under the ticker symbols BRK.A and BRK.B. Forward-Looking Statements Certain statements in this news release are considered "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance, and actual results may differ significantly from forecasted results. II. Notes on "Equity Securities Investment" in Financial Reports Over the years, our equity securities investments have been concentrated in relatively few companies. As of March 31, 2025, and December 31, 2024, the fair values of our top five holdings accounted for 69% and 71%, respectively, of the total fair value of equity securities in the table above. The top five holdings at these two time points were American Express Company, Apple Inc., Bank of America, The Coca-Cola Company, and Chevron Corporation. Since 2019, we have also held Western Petroleum Company's non-voting cumulative perpetual preferred stock and common stock warrants. Our holdings of Western Petroleum preferred stock and common stock warrants are accounted for at fair value and included in equity securities on the consolidated balance sheet because, under U.S. Generally Accepted Accounting Principles (GAAP), these investments are not considered common stock. We account for our investment in Western Petroleum common stock under the equity method. The Western Petroleum preferred stock carries a cumulative 8% annual dividend rate, and Western Petroleum may redeem it at a redemption price of 105% of the liquidation value from 2029 onwards. As of March 31, 2025, the total liquidation value of our Western Petroleum preferred stock holdings is approximately $8.5 billion. To date, due to Western Petroleum distributing dividends to common stock shareholders exceeding a specified amount (as defined in the preferred stock certificates), we have requested the redemption of approximately $1.5 billion of preferred stock liquidation value. The Western Petroleum common stock warrants allow us to convert at a price of $59.62 per share.Exercise price, maximum purchase of 83.86 million shares of Western Oil common stock. These warrants can be exercised in whole or in part, and expire one year after the redemption of all preferred shares.As of March 31, 2025, we hold 151.6 million shares of common stock of American Express Company ("American Express"), representing 21.6% of the common stock issued by American Express. Since 1995, we have reached an agreement with American Express agreeing to vote most of the shares held by us according to the recommendations of the board of directors of American Express. In addition, we agree to comply with the relevant restrictions of the Federal Reserve Board, which we believe will limit our significant influence on the operations and financial policies of American Express. Therefore, we account for our investment in American Express common stock at fair value, not using the equity method. Berkshire and its subsidiaries account for investments in certain entities using the equity method. The most significant of these are our investments in Kraft Heinz Company ("Kraft Heinz") and Wells Fargo common stock. As of March 31, 2025, we hold 27.3% of the issued common stock of Kraft Heinz, and 28.2% of the issued common stock of Wells Fargo (this ratio does not consider the potential impact of the exercise of warrants on the issued common stock of Wells Fargo). Kraft Heinz produces and sells food and beverage products, including condiments and sauces, cheese and dairy products, meals, meats, ready-to-eat dishes, and other grocery products such as coffee. Wells Fargo is an international energy company engaged in exploration, development and production of oil and gas, as well as chemical manufacturing business. We also hold a 50% interest in Berkshire Hathaway Commercial Mortgage LLC ("Berkadia"), with J.F. Financial Group Company ("J.F.") holding the remaining 50% interest. Berkadia engages in commercial/multi-family real estate mortgage banking business, investment sales and services. The commercial note borrowing limit of Berkadia (capped at $1.5 billion) is supported by guarantee policies issued by Berkshire's insurance subsidiaries. Under the policy, J.F. is obligated to bear half of any losses incurred. The fair value and book value of these investments are shown in the table below (in millions of US dollars). Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Net income attributable to Berkshire shareholders is shown in the table below (in millions of US dollars, amounts are net of taxes and exclude non-controlling interests): Through subsidiaries, we engage in a diverse range of business activities. The business segment data below (see Notes to Consolidated Financial Statements 24 and Note 26 in the annual 10-K report ending December 31, 2024) should be read in conjunction with this discussion. Future periodic operating performance may be affected by ongoing macroeconomic and geopolitical events, as well as industry or company specific factors or event changes. In 2025, these events are changing at an accelerated pace, including changes in international trade policy and tariffs. The ultimate outcomes of these events are highly uncertain. We are currently unable to reliably predict the potential impact of these events on our business, whether through changes in product costs, supply chain costs and efficiency, or changes in customer demand for our products and services. It is likely to have adverse effects on most (if not all) of our operating businesses and our equity securities investments, which could significantly impact our future performance. Insurance Underwriting In the first quarter of 2025, underwriting profit after taxes decreased by $1.3 billion compared to 2024. The underwriting result for the first quarter of 2025 includes approximately $860 million in after-tax losses from the Southern California wildfires. In the first quarter of 2025, after-tax investment income for insurance increased by $295 million compared to 2024, primarily due to higher interest income from investments in U.S. Treasury bonds, partially offset by a decrease in dividend income. BNSF Railway In the first quarter of 2025, BNSF's after-tax income increased by 6.2% compared to 2024, despite the adverse impact of severe weather in February 2025, benefiting from higher transportation volumes and overall operational efficiency improvements. Berkshire Hathaway Energy (BHE) In the first quarter of 2025, BHE's after-tax income increased by $380 million (53.0%) compared to 2024. Income growth reflects increased earnings from utility and energy businesses, a decrease in non-controlling interest income, and a decrease in real estate brokerage losses, primarily due to the impact of settlement fees in the first quarter of 2024. Manufacturing, Services, and Retail Operations In the first quarter of 2025, our manufacturing, services, and retail operations had a slight decrease in after-tax income compared to 2024. The income for 2025 reflects overall growth in service and retail business and overall decline in manufacturing business. The revenue and income from most of our businesses in the first quarter of 2025 were lower than the same period in 2024. Investment Income (Loss) Investment income (loss) mainly comes from our equity securities investments, including significant unrealized gains and losses from market price changes and foreign currency exchange rate changes applicable to certain investments. We believe that investment income and loss, whether realized gains from disposals or unrealized gains from market price changes, typically have no meaningful impact on understanding our quarterly financial performance or evaluating the economic performance of our operating businesses. These gains and losses have and will continue to lead to significant fluctuations in our periodic earnings. Other Income Other income includes corporate investment income, equity method investment income, and foreign exchange gains and losses related to non-dollar denominated debt of Berkshire and BHFC. In the first quarter of 2025, after-tax foreign exchange losses amounted to $713 million, compared to income of $597 million in the first quarter of 2024. Insurance Underwriting Our regular underwriting income may experience significant fluctuations due to the timing and magnitude of major catastrophe losses. In addition, we generally do not reinsure the risks we assume. We currently believe that whenThe cumulative pre-tax loss caused by a single event in a year exceeds $150 million, which is considered a significant loss. In the first quarter of 2025, we suffered significant losses due to the Southern California wildfires, while there were no significant disaster events in the first quarter of 2024. Changes in unpaid losses and loss adjustment expenses estimates, including amounts set aside for events in previous years, as well as foreign exchange gains and losses resulting from the revaluation of non-US dollar denominated assets and liabilities, will also significantly impact our underwriting performance.Our primary and reinsurance policies cover property and casualty risks, as well as life and health risks. Our insurance and reinsurance business includes GEICO, Berkshire Hathaway Primary Group (BH Primary), and Berkshire Hathaway Reinsurance Group (BHRG). We are committed to generating long-term underwriting profits (defined as earned premium minus incurred insurance losses/benefits and underwriting expenses) in all business categories, except for retroactive reinsurance and periodic payment annuity business. The concept of the time value of money is an important consideration when setting premiums for these policies, with these premiums being recognized as revenue during the claims settlement period. Here is a summary of the underwriting performance of our insurance business (in million US dollars): GEICO GEICO underwrites property and casualty insurance policies in all 50 states and the District of Columbia, primarily for private passenger auto insurance. GEICO primarily offers policies through a direct response method, with most customers applying for insurance directly to the company via the internet or phone. GEICO also operates an insurance agency offering homeowners and renters insurance to its auto policyholders. Here is a summary of GEICO's underwriting performance (in million US dollars): In the first quarter of 2025, written premiums increased by 710 million US dollars (6.6%) compared to 2024, reflecting an increase in the number of effective policies and an increase in the average premium per policy. Earned premiums increased by 518 million US dollars (5.1%) compared to the first quarter of 2024. Loss and loss adjustment expenses increased by 1 million US dollars (0.1%) compared to the first quarter of 2024. In the first quarter of 2025, GEICO's loss ratio (loss and loss adjustment expenses as a percentage of earned premiums) was 69.0%, a decrease of 3.5 percentage points from 2024. The decrease in the loss ratio reflects an increase in the average premium per auto policy and a decrease in claim frequency, partially offset by an increase in the average claim severity and adverse development in prior accident year claim estimates. In the first quarter of 2025, claim frequencies for property damage and collision insurance for private passenger autos decreased (6% to 9%) compared to 2024, and claim frequencies for bodily injury insurance also slightly decreased. Compared to 2024, the average claim severity in the first quarter of 2025 increased for property damage and collision insurance (1% to 3%) and bodily injury insurance (6% to 8%). Loss and loss adjustment expenses included a reduction of 45 million US dollars in the final loss estimate for prior accident years in the first quarter of 2025, compared to a reduction of 155 million US dollars in 2024. Underwriting expenses increased by 263 million US dollars in the first quarter of 2025 compared to 2024. GEICO's expense ratio (underwriting expenses as a percentage of earned premiums) was 10.8% in the first quarter of 2025, an increase of 2.1 percentage points from 2024, attributable to an increase in policy acquisition expenses, partially offset by an increase in operating leverage. The revenue from GEICO's insurance agency (third-party commissions, net of operating expenses) is included as a reduction in underwriting expenses. Berkshire Hathaway Primary Group (BH Primary) BH Primary consists of several independently managed businesses that provide various primary commercial insurance solutions to large, medium, and small clients, including medical professional liability, workers' compensation, auto, general liability, property, and specialty insurance. BH Primary's insurance companies include Berkshire Hathaway Specialty Insurance Company (BHSI), RSUI Group, and CapSpecialty Company (RSUI and CapSpecialty), Berkshire Hathaway Home State Insurance Company (BHHC), MedPro Group, GUARD Insurance Group Company (GUARD), National Indemnity Company Primary (NICO Primary), Berkshire Hathaway Direct Insurance Company (BH Direct), and United States Liability Insurance Company (USLI). In the first quarter of 2025, written premiums decreased by 1.6% compared to 2024. The main reasons for the decrease were a 34% decrease in GUARD premiums and a slight decrease in RSUI premiums, but the increase in NICO Primary, BHHC, and BH Direct premiums partially offset this decrease. The decrease in GUARD premiums reflects a reduction in business volumes in multiple product categories due to exiting unprofitable product lines and tightening overall underwriting standards. The decrease in RSUI premiums is mainly due to a decrease in business volume, but is partially offset by an increase in renewal business. The growth in NICO Primary and BHHC is mainly attributed to commercial auto business, while the growth in BH Direct reflects growth in multiple business lines and product categories. Loss and loss adjustment expenses increased by 640 million US dollars (22.8%), and the loss ratio increased by 13.5 percentage points compared to the first quarter of 2024. In the first quarter of 2025, losses from wildfires in Southern California amounted to approximately 3 billion US dollars. Losses in 2025 also included an increase of 2.12 billion US dollars in the final loss estimate for prior accident years, attributable to higher final loss estimates for liability insurance, partially offset by lower final loss estimates for property and medical liability insurance. In the first quarter of 2024, incurred loss estimate for prior accident years decreased by 93 million US dollars. Claims costs for medical professional liability and other liability claims continue to be negatively affected by adverse social inflation trends, including the impact of jury verdicts and litigation expenses. Berkshire Hathaway Reinsurance Group (BHRG) Berkshire Hathaway Reinsurance Group operates through several subsidiaries (including National Indemnity Company, General Re)Insurance companies and general reinsurance AG (with Atlantic China Welding Consumables, Inc. reinsurance company as the main reinsurer) provide excess of loss and proportional reinsurance protection for property and casualty risks to insurance and reinsurance companies globally. We also offer life and health reinsurance through General Re Life Corporation, General Reinsurance AG, and Nebraska Berkshire Hathaway Life Insurance Company. The following is a summary of BHRG's pre-tax underwriting performance (in million US dollars):Property / Casualty Reinsurance The following is a summary of the underwriting performance of Property / Casualty Reinsurance (in millions of US dollars): In the first quarter of 2025, written premiums decreased by 320 million dollars (5.0%) compared to 2024, primarily due to a decrease in property insurance business volume. Earned premiums decreased by 3.7% compared to the first quarter of 2024. Loss and loss adjustment expenses increased by 606 million dollars (20.2%), with a loss ratio increasing by 13.6 percentage points compared to the first quarter of 2024. Losses from wildfires in Southern California in the first quarter of 2025 amounted to approximately 770 million dollars. The final liability estimate for prior accident years decreased by 330 million dollars in the first quarter of 2025, compared to a decrease of 386 million dollars in 2024, mainly due to lower than expected property losses. Underwriting expenses increased by 134 million dollars (9.3%) in the first quarter of 2025, with an expense ratio increasing by 3.6 percentage points compared to 2024. Underwriting expenses include a 142 million dollar foreign exchange loss resulting from the revaluation of certain non-US dollar denominated liabilities in the first quarter of 2025, compared to a gain of 26 million dollars in 2024. Otherwise, underwriting expenses in 2025 decreased by 2.3% compared to 2024. Investment Income The following is a summary of the net investment income attributable to our insurance business (in millions of US dollars): In the first quarter of 2025, interest and other investment income increased by 588 million dollars (30.5%) compared to 2024. This growth was mainly due to an increase in the balances of US Treasury bonds and other short-term investments, partially offset by lower interest rates. We continue to believe that maintaining sufficient liquidity is crucial, and in the short-term investments, we prioritize safety over returns. Dividend income decreased by 179 million dollars (14.7%) in the first quarter of 2025 compared to 2024. The main reason for the decrease was net disposals of equity securities, partially offset by higher dividend rates for certain holdings. Dividend income also varies in different periods due to changes in the investment portfolio and the frequency and timing of dividends from invested companies. The investment assets of our insurance business come from shareholder capital and net liabilities assumed under insurance contracts (i.e. "float"). The main components of the float include unpaid losses and loss adjustment expenses (including liabilities under retroactive reinsurance contracts), life, annuity and health benefit liabilities, unearned premiums, and certain other liabilities, minus accounts receivable for insurance premiums, reinsurance recoverables, deferred charges assumed under retroactive reinsurance contracts and deferred policy acquisition costs. The impact of changes in the discount rates for long-term insurance contracts (recorded in other comprehensive income) is not included in the float because these amounts are not included in the income combined statement. As of March 31, 2025, the float was approximately 173 billion dollars, compared to 171 billion dollars as of December 31, 2024. The cost of the float is measured by the ratio of pre-tax underwriting income to float balance. Our comprehensive insurance business generated pre-tax underwriting income in the first quarters of 2025 and 2024, with an average float cost of negative in each period. The following is a summary of the cash and investments held by our insurance business (in millions of US dollars): BNSF Railway BNSF Railway operates one of the largest rail systems in North America, with over 32,500 miles of track in 28 states and operations in three provinces in Canada. BNSF categorizes its main business groups by types of transported products including consumer goods, agricultural and energy products, industrial products, and coal. The following is a summary of BNSF's revenue (in millions of US dollars): The following is a summary of railway freight volumes by business group for BNSF (in thousands of cars / units): In the first quarter of 2025, railway operating revenue slightly increased compared to 2024, primarily due to a 4.1% increase in unit transport volume and core pricing increases, partially offset by a decrease in average revenue per car/unit (due to reduced fuel surcharge income and unfavorable business mix). Pre-tax income increased by 5.5% compared to the first quarter of 2024. In the first quarter of 2025, consumer goods operating revenue was 2 billion dollars, an increase of 3.2% compared to 2024, reflecting an 8.6% increase in transport volume, but partially offset by a decrease in average revenue per car/unit. The increase in transport volume is mainly attributed to an increase in multimodal transportation of goods due to increased imports on the West Coast and an increase in car transport volume due to higher automobile production. Agricultural and energy products operating revenue in the first quarter of 2025 was 1.6 billion dollars, an increase of 0.8% compared to 2024, due to an increase in average revenue per car/unit, but partially offset by a slight decrease in transport volume. The slight decrease in transport volume is mainly due to a decrease in domestic grain transport volume. Industrial products operating revenue in the first quarter of 2025 was 1.2 billion dollars, a decrease of 3.3% compared to 2024. The decrease is attributed to a 5.9% decrease in transport volume, but partially offset by an increase in average revenue per car/unit. The decrease in transport volume is mainly due to weather-related impacts and a decrease in demand for construction and building products. Coal operating revenue in the first quarter of 2025 was 734 million dollars, a decrease of 4.1% compared to 2024, reflecting a decrease in average revenue per car/unit, but partially offset by a 1.7% increase in transport volume. The increase in transport volume is attributed to an increase in demand due to rising natural gas prices. In the first quarter of 2025, railway operating expenses decreased by 66 million dollars (1.7%) compared to 2024. Fuel costs decreased by 84 million dollars (9.8%) compared to the first quarter of 2024, reflecting a decrease in average fuel prices, but partially offset by transport volume.Increase offset. Purchasing service costs increased by 34 million USD (6.9%) in the first quarter of 2024, mainly due to increased costs related to shipping volume, investment in cargo security, and general inflation.Financial situation Our consolidated balance sheet continues to reflect significant liquidity and a very strong capital base. As of March 31, 2025, Berkshire's shareholders' equity was $654.5 billion, an increase of $5.1 billion from December 31, 2024. In the first quarter of 2025, net earnings attributable to Berkshire shareholders were $4.6 billion, including approximately $5 billion of after-tax investment losses. Changes in market prices of our equity securities investments typically result in significant fluctuations in our earnings. Berkshire's common stock repurchase program allows Berkshire to repurchase its A and B class shares at prices below intrinsic value as determined conservatively by Chairman and CEO Warren Buffett. There is no minimum or maximum repurchase amount commitment. Berkshire will not repurchase shares if it results in our combined cash, cash equivalents, and U.S. Treasury holdings falling below $30 billion. Financial strength and excess liquidity remain crucial for Berkshire. There were no stock repurchases in the first quarter of 2025. As of March 31, 2025, our insurance and other businesses held $328 billion in cash, cash equivalents, and U.S. Treasuries (net of unpaid purchase obligations). Equity and fixed maturity securities investments (excluding equity method investments) were $278.8 billion. As of March 31, 2025, our consolidated borrowings were $125.9 billion, over 95% of which were issued by Berkshire and its subsidiaries BHFC, BNSF, and BHE. As of March 31, 2025, Berkshire's unpaid debt was $20.6 billion, a decrease of approximately $500 million from December 31, 2024. In the first quarter of 2025, Berkshire repaid approximately $1.3 billion of maturing debt. Additionally, due to changes in foreign exchange rates, the book value of Berkshire's non-U.S. dollar-denominated debt increased by $809 million in the first quarter of 2025. BHFC's senior notes borrowings were approximately $18 billion as of March 31, 2025, essentially unchanged from December 31, 2024. BHFC's borrowings are used to provide funding for loans originated and acquired by Clayton Homes and equipment held by our railroad vehicle leasing business. Berkshire guarantees full and timely payment of both principal and interest on BHFC's senior notes. As of March 31, 2025, and December 31, 2024, BNSF's unpaid debt was $23.5 billion. As of March 31, 2025, BHE's total borrowings were approximately $58 billion, an increase of $1.6 billion from December 31, 2024. In the first quarter of 2025, BHE's subsidiaries issued $2.4 billion of term debt with an average interest rate of 6.5%, maturing from 2035 to 2055, and BHE and its subsidiaries repaid approximately $890 million of term debt and short-term borrowings. Berkshire does not guarantee the repayment of any debt issued by BNSF, BHE, or any of its subsidiaries or affiliates. In the first quarter of 2025, our diversified business group generated $10.9 billion in net operating cash flow. In the first quarter of 2025, our combined capital expenditures for property, plants and equipment, and leased equipment amounted to $4.3 billion, including $2.8 billion for BNSF and BHE. BNSF and BHE maintain significant investments in capital assets (property, plants and equipment) and regularly make substantial capital expenditures as part of their normal business operations. BHE and BNSF have estimated capital expenditures of approximately $11.9 billion for the remainder of 2025. Key accounting estimates Certain accounting policies require us to make estimates and judgments when determining amounts reflected in the consolidated financial statements. These estimates and judgments involve varying degrees of uncertainty, which can sometimes be significant. Therefore, certain amounts currently recorded in the consolidated financial statements may be adjusted in the future based on new available information and changes in other facts and circumstances. Refer to Berkshire's annual Form 10-K as of December 31, 2024, for discussions on "Key Accounting Estimates" in the "Management's Discussion and Analysis of Financial Condition and Results of Operations." As of March 31, 2025, our consolidated balance sheet includes estimated liabilities of $149.1 billion for unpaid losses and loss adjustment expenses for property and casualty insurance and reinsurance contracts. Due to inherent uncertainties in establishing these liabilities, the actual ultimate claim amounts may differ from the amounts currently recorded. Even small percentage changes in these estimates could have a significant impact on periodic earnings. The impact of these estimate changes is recorded in insurance losses and loss adjustment expenses during the period of change. As of March 31, 2025, our consolidated balance sheet includes $84 billion in goodwill and $18.9 billion in indefinite-lived intangible assets related to acquired businesses. In the fourth quarter of 2024, in the annual impairment test of goodwill, the estimated fair values of goodwill for our seven reporting units did not exceed their carrying values by at least 20%, as disclosed in Berkshire's Form 10-K as of December 31, 2024. The aggregate estimated total fair value of these reporting units at that time was approximately $65.6 billion, exceeding our total carrying value of $57.4 billion. The total goodwill of these reporting units was approximately $18.6 billion. The impairment test for goodwill and indefinite-lived intangible assets includes determining the carrying values of reporting units and indefinite-lived intangible assets.Estimate fair value. Fair value may be estimated using various methods and inputs, and significant judgment is required when making such estimates. Due to the inherent subjectivity and uncertainty involved in long-term forecasting of future cash flows and earnings, actual results may differ significantly from forecasts.As of March 31, 2025, we have concluded that the goodwill and other indefinite-lived intangible assets recorded in the consolidated balance sheet are unlikely to be impaired. However, fair value estimates for reporting units and assets may change based on market and economic conditions, as well as events that affect our business, and we cannot reliably predict these changes. In such circumstances, it is reasonably possible that adverse changes in such conditions or events may result in impairment losses being recognized in our consolidated financial statements in the future. Forward-Looking Statements Investors are advised that certain statements in this document, as well as periodic news releases and certain oral statements made by Berkshire officials regarding Berkshire or its subsidiaries, fall under the category of "forward-looking statements" as defined by the 1995 Private Securities Litigation Reform Act. Forward-looking statements include predictive statements that rely on or involve future events or conditions, or include statements containing words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions. Additionally, any statements made by management regarding future financial performance (including future revenues, earnings, or growth rates), ongoing business strategies or prospects, and future actions that Berkshire may take, also fall under the definition of forward-looking statements as defined by the Act. These statements are based on current expectations and forecasts of future events, and are subject to risks, uncertainties, and assumptions about Berkshire and its subsidiaries, economic and market factors, and the industry in which we operate. These statements are not guarantees of future performance, and we do not intend to update them specifically. Due to various factors, actual events and results may differ significantly from the content expressed or predicted in forward-looking statements. Key risk factors that may cause our actual performance and future events and actions to differ significantly from these forward-looking statements include but are not limited to: changes in the market prices of our equity securities investments; the occurrence of one or more catastrophic events such as earthquakes, hurricanes, geopolitical conflicts, terrorist acts, or cyber attacks resulting in losses underwritten by our insurance subsidiaries and/or losses in our business operations; the frequency and severity of epidemics, pandemics, or other outbreaks and events that negatively impact our operational performance and prevent us from accessing borrowing at reasonable rates through capital markets; changes in laws or regulations affecting our insurance, railroad, utility, energy, and financial subsidiaries; changes in federal income tax laws; and changes in general economic and market factors affecting security prices or our industry.