Berkshire Business Group Statements

BERKSHIRE HATHAWAY INC.

COMBINED FINANCIAL STATEMENTS

BUSINESS GROUPS

Berkshire's consolidated data is rearranged in the presentations on the following six pages into four categories, corresponding to the way Mr. Buffett and Mr. Munger think about Berkshire's businesses. The presentations may be helpful to readers in making estimates of Berkshire's intrinsic value.
The presentations in this section do not conform in all respects to GAAP. Principal departures from GAAP relate to accounting treatment for assets acquired in business acquisitions, although students and practitioners of accounting will recognize others.

Opinions of Berkshire's independent auditors were not solicited for this data. The four-category presentations in no way fell within their purview.

BERKSHIRE HATHAWAY INC.

INSURANCE GROUP

     Berkshire's insurance businesses are comprised of four operating groups of subsidiaries. GEICO, through its subsidiaries, is a multiple line property and casualty insurer the principal business of which is writing private passenger automobile insurance. GEICO policies are marketed mainly by direct response methods in which customers apply for coverage directly to the company over the telephone, through the mail or via the Internet. GEICO is currently the sixth largest auto insurer in the U.S.

     The Berkshire Hathaway Reinsurance Group provides treaty and limited facultative reinsurance to other property/casualty insurers and reinsurers. Berkshire is one of the world's leading providers of catastrophe excess of loss reinsurance. In recent years, the group has generated significant premium volume from a few very sizable retroactive reinsurance contracts. Berkshire's unparalleled capital strength has enabled it to offer dollar coverages of a magnitude far in excess of its competitors.

     On December 21, 1998, Berkshire acquired General Re Corporation. General Re is a holding company for global reinsurance and related risk management operations. General Re, through its domestic subsidiaries, General Reinsurance Corporation and National Reinsurance Corporation, is one of the largest professional property/casualty reinsurance groups domiciled in the United States. General Re also owns a controlling interest in Cologne Re, a major international reinsurer.

     Berkshire's fourth group of businesses underwrite miscellaneous forms of direct insurance. National Indemnity Company and other affiliated entities underwrite multiple lines of traditional insurance for primarily commercial accounts. The "Homestate Group" companies underwrite various commercial coverages for risks in an increasing number of selected states. Cypress Insurance Company provides workers' compensation insurance to employers in California and other states. Central States Indemnity Company issues credit insurance distributed through credit card issuers nationwide, Kansas Bankers Surety Company is an insurer for primarily small and medium sized banks located in the midwest and the United States Liability Insurance Group (acquired on August 8, 2000) is a provider of excess and surplus lines of insurance.

     Combined financial statements of the Insurance Group — unaudited and not fully adjusted to conform to GAAP — are presented on the following page. These combined financial statements exclude the operating results of General Re from 1998's Statement of Earnings.

BERKSHIRE HATHAWAY INC.
INSURANCE GROUP
Balance Sheets
(dollars in millions)

	December 31,
	2000	1999
Assets
Investments:
Fixed maturities at market	$32,381	$30,217
Equity securities and other investments at market:
American Express Company	8,147	8,218
The Coca-Cola Company	12,159	11,622
Freddie Mac	146	2,803
The Gillette Company	3,468	3,954
Wells Fargo & Company	2,964	2,316
Other	12,008	10,256
	71,273	69,386
Cash and cash equivalents	4,700	2,981
Deferred costs	3,508	2,309
Other	12,808	9,490
	$92,289 ======	$84,166 ======
Liabilities
Losses and loss adjustment expenses	$33,022	$26,802
Unearned premiums	3,885	3,718
Policyholder liabilities and other accruals	6,986	6,537
Income taxes, principally deferred	9,729	9,430
	53,622	46,487
Equity
Minority shareholders’	1,157	1,337
Berkshire shareholders’	37,510	36,342
	38,667	37,679
	$92,289 ======	$84,166 ======

Statements of Earnings
(dollars in millions)

	2000	1999	1998
Premiums written	$19,662	$14,667	$5,476
Premiums earned	$19,343	$14,306	$5,300
Losses and loss expenses	17,326	12,518	3,904
Underwriting expenses	3,602	3,182	1,131
Total losses and expenses	20,928	15,700	5,035
Underwriting gain (loss) — pre-tax	(1,585)	(1,394)	265
Net investment income*	2,811	2,488	974
Realized investment gain	3,920	1,364	2,462
Earnings before income taxes	5,146	2,458	3,701
Income tax expense	1,604	672	1,186
	3,542	1,786	2,515
Minority interest	230	35	17
Net earnings	$ 3,312 ======	$ 1,751 ======	$2,498 ======
* Net investment income is summarized below:
Dividends	$ 493	$ 476	$363
Interest	2,340	2,030	621
Investment expenses	(22)	(18)	(10)
	$2,811 ======	$2,488 ======	$974 ======

These statements do not conform to GAAP in all respects
These statements are unaudited

BERKSHIRE HATHAWAY INC.

MANUFACTURING, RETAILING AND SERVICES BUSINESSES

Combined financial statements of Berkshire's Manufacturing, Retailing and Services businesses - unaudited and not fully adjusted to conform to GAAP - are presented on the following page. The operations whose data have been combined in these presentations include the following:

Operation	Product/Service/Activity

Acme Building Brands	Face brick and other building materials
Adalet	Electrical enclosure systems and cable accessories
Ben Bridge Jeweler	Retailing fine jewelry
Benjamin Moore	Architectural and industrial coatings
Blue Chip Stamps	Marketing motivational services
Borsheim's	Retailing fine jewelry
Buffalo News	Daily and Sunday newspaper
Campbell Hausfeld	Air compressors and tools, painting systems, pressure washers, welders and generators
Carefree	Comfort and convenience products for the recreational vehicle industry
Cleveland Wood Products	Vacuum cleaner brushes and bags
CORT Business Services	Provider of rental furniture, accessories and related services
Dexter Shoe Company	Dress, casual and athletic shoes
Douglas Products	Specialty and cordless vacuum cleaners
Executive Jet	Fractional ownership programs for general aviation aircraft
Fechheimer Bros. Co.	Uniforms and accessories
FlightSafety	High technology training to operators of aircraft and ships
France	Sign transformers including components and battery chargers
H. H. Brown Shoe Co.	Work shoes, boots and casual footwear
Halex	Zinc die cast conduit fittings and other electrical construction materials
Helzberg's Diamond Shops	Retailing fine jewelry
International Dairy Queen	Licensing and servicing Dairy Queen Stores
Jordan’s Furniture	Retailing home furnishings
Justin Brands	Western footwear
Kingston	Appliance controls and actuators
Kirby	Home cleaning systems
Lowell Shoe, Inc.	Women's and nurses' shoes
Meriam	Pressure and flow measurement devices
MidAmerican Energy	Production, supply and distribution of energy
Nebraska Furniture Mart	Retailing home furnishings
Northland	Fractional horsepower electric motors
Powerwinch	Marine and general purpose winches, windlasses, and hoists
Precision Steel Products	Steel service center
Quikut	Cutlery for the home and sporting goods markets
ScottCare	Cardiopulmonary rehabilitation and monitoring equipment
Scot Labs	Cleaning compounds and solutions
See's Candies	Boxed chocolates and other confectionery products
Stahl	Truck equipment including service flatbed and dump bodies, cranes, tool boxes, and hoists
Star Furniture Company	Retailing home furnishings
Wayne Combustion Systems	Oil and gas burners for residential and commercial appliances and equipment
Wayne Water Systems	Sump, utility, sewage and well pumps
Western Enterprises	Medical and industrial compressed gas fittings and regulators
Western Plastics	Molded plastic components
R.C. Willey Home Furnishings	Retailing home furnishings
World Book	Printed and multimedia encyclopedias and other educational materials

BERKSHIRE HATHAWAY INC.

MANUFACTURING, RETAILING AND SERVICES BUSINESSES

Balance Sheets
(dollars in millions)

	December 31,
	2000	1999
Assets
Cash and cash equivalents	$ 400	$ 370
Accounts receivable	1,226	923
Inventories	1,215	806
Investments in MidAmerican Energy Holdings Company	1,719	¾
Properties and equipment	2,250	1,509
Other	921	388
	$7,731 ======	$3,996 ======
Liabilities
Accounts payable, accruals and other	$1,674	$ 908
Income taxes	187	196
Term debt and other borrowings	1,213	740
	3,074	1,844
Equity
Minority shareholders’	59	75
Berkshire shareholders’	4,598	2,077
	4,657	2,152
	$7,731 ======	$3,996 ======

Statements of Earnings
(dollars in millions)

	2000	1999	1998
Revenues:
Sales and service revenues	$7,326	$5,918	$4,675
Income from MidAmerican Energy Holdings Company	197	¾	¾
Interest income	18	11	8
	7,541	5,929	4,683
Cost and expenses:
Cost of products and services sold	4,893	4,061	3,010
Selling, general and administrative expenses	1,657	1,126	1,014
Interest on debt	85	31	19
	6,635	5,218	4,043
Earnings from operations before income taxes	906	711	640
Income tax expense	334	267	234
	572	444	406
Minority interest	21	5	5
Net earnings	$ 551 ====	$ 439 ====	$ 401 ====

This presentation reflects the results of operations of recent business acquisitions from their respective dates of acquisition; (International Dairy Queen — January 7, 1998; Executive Jet — August 7, 1998; Jordan’s Furniture — November 13, 1999; CORT Business Services — February 18, 2000; MidAmerican Energy — March 14, 2000 (accounted for on the equity method); Ben Bridge Jeweler — July 3, 2000; Acme Building Brands and Justin Brands — August 1, 2000; Benjamin Moore — December 18, 2000).

Purchase-accounting adjustments, including goodwill, arising from Berkshire's business acquisitions are not reflected in these statements, but instead are reflected in the statements of non-operating activities at page 73.
These statements do not conform to GAAP in all respects
These statements are unaudited

BERKSHIRE HATHAWAY INC.

FINANCE AND FINANCIAL PRODUCTS BUSINESSES

Scott Fetzer Financial Group, Inc., Berkshire Hathaway Life Insurance Co. of Nebraska, Berkshire Hathaway Credit Corporation, BH Finance and Gen Re Securities Holdings Limited ("GRS") (formerly General Re Financial Products) make up Berkshire's finance and financial products businesses.

Balance Sheets
(dollars in millions)

	2000	1999
Assets
Cash and cash equivalents	$ 341	$ 623
Investment in securities with fixed maturities:
Held-to-maturity, at cost (fair value $1,897 in 2000; $1,930 in 1999)	1,826	2,002
Trading, at fair value (cost $5,277 in 2000; $11,330 in 1999)	5,327	11,277
Available-for-sale, at fair value (cost $880 in 2000; $997 in 1999)	880	999
Trading account assets	5,429	5,881
Securities purchased under agreements to resell	680	1,171
Other	2,346	2,276
	$16,829 ======	$24,229 ======
Liabilities
Annuity reserves and policyholder liabilities	$ 868	$ 843
Securities sold under agreements to repurchase	3,386	10,216
Securities sold but not yet purchased	715	1,174
Trading account liabilities	4,974	5,930
Notes payable and other borrowings	2,116	1,998
Other	3,004	2,304
	15,063	22,465
Equity
Berkshire shareholders’	1,766	1,764
	$16,829 ======	$24,229 ======

Statements of Earnings
(dollars in millions)

	2000	1999	1998
Revenues:
Interest income	$ 910	$ 740	$ 131
Other revenues	595	247	257
	1,505	987	388
Expenses:
Interest expense	798	596	27
Annuity benefits and underwriting expenses	55	54	146
General and administrative	123	228	16
	976	878	189
Earnings from operations before income taxes	529	109	199
Income tax expense	187	32	70
Net earnings	$ 342 =====	$ 77 ====	$ 129 =====

GRS was acquired in connection with the acquisition of General Re Corporation on December 21, 1998. These statements reflect GRS’s operating results for the years ended December 31, 2000 and 1999.

These statements do not conform to GAAP in all respects
These statements are unaudited

BERKSHIRE HATHAWAY INC.

NON-OPERATING ACTIVITIES

These statements reflect the consolidated financial statement values for assets, liabilities, shareholders' equity, revenues and expenses that were not assigned to any Berkshire operating group in the unaudited, and not fully GAAP - adjusted group financial statements heretofore presented (pages 67 to 72).

Statements of Net Assets
(dollars in millions)

	December 31,
	2000	1999
Assets
Cash and cash equivalents	$ 163	$ 484
Investments:
Fixed maturities	184	2
Equity securities	365	339
Unamortized goodwill and other purchase-accounting adjustments *	18,831	18,489
Deferred tax assets	62	80
Other	69	50
	$19,674 ======	$19,444 ======
Liabilities
Accounts payable, accruals and other	$ 163	$ 76
Income taxes	236	86
Borrowings under investment agreements and other debt	1,372	1,693
	1,771	1,855
Equity
Minority shareholders’	53	11
Berkshire shareholders’	17,850	17,578
	17,903	17,589
	$19,674 ======	$19,444 ======

Statements of Earnings
(dollars in millions)

	2000	1999	1998
Revenues:
Interest, dividend and other income	$ 35	$ 39	$ 63
Realized investment gain	35	1	40
	70	40	103
Expenses:
Corporate administration	6	6	6
Shareholder-designated contributions	17	17	17
Amortization of goodwill and purchase-accounting adjustments *	876	739	210
Interest on debt	98	106	96
	997	868	329
Loss before income taxes	(927)	(828)	(226)
Income tax benefit	(55)	(119)	(33)
	(872)	(709)	(193)
Minority interest	5	1	5
Net loss	$(877) ======	$(710) ======	$(198) ======

* Purchase-accounting adjustments and goodwill arose in accounting for business acquisitions.

These statements do not conform to GAAP in all respects
These statements are unaudited