CONSOLIDATED BALANCE SHEETS
(dollars in millions except per share amounts)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)

The accompanying unaudited Consolidated Financial Statements include the accounts of Berkshire Hathaway Inc. ("Berkshire" or "Company") consolidated with the accounts of all its subsidiaries. Reference is made to Berkshire's most recently issued Annual Report that included information necessary or useful to understanding Berkshire's businesses and financial statement presentations. In particular, Berkshire's significant accounting policies and practices were presented as Note 1 to the Consolidated Financial Statements included in that Report. Certain amounts in 2001 have been reclassified to conform with current year presentation.

Financial information in this Report reflects any adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary to a fair statement of results for the interim periods in accordance with generally accepted accounting principles ("GAAP").

For a number of reasons, Berkshire's results for interim periods are not normally indicative of results to be expected for the year. The timing and magnitude of catastrophe losses incurred by insurance subsidiaries and the estimation error inherent to the process of determining liabilities for unpaid losses of insurance subsidiaries can be relatively more significant to results of interim periods than to results for a full year. Realized investment gains/losses are recorded when investments are sold, other-than-temporarily impaired or in certain situations, as required by GAAP, when investments are marked-to-market. Variations in amount and timing of realized investment gains/losses can cause significant variations in periodic net earnings.

During 2001, Berkshire completed four significant business acquisitions and completed an additional acquisition during the first quarter of 2002. Information concerning these acquisitions follows.

Shaw Industries, Inc. ("Shaw")

On January 8, 2001, Berkshire acquired approximately 87.3% of the common stock of Shaw for $19 per share, or $2.1 billion in total. Robert E. Shaw, Chairman and CEO of Shaw, Julian D. Saul, President of Shaw, certain family members and related family interests of Messrs. Shaw and Saul, and certain other Shaw directors and members of management acquired the remaining 12.7% of Shaw. In January 2002, Berkshire acquired their shares in exchange for 4,505 shares of Berkshire Class A common stock and 7,063 shares of Class B common stock. The aggregate value of Berkshire stock issued was approximately $324 million.

Shaw is the world’s largest manufacturer of tufted broadloom carpet and rugs for residential and commercial applications throughout the U.S. and exports to most markets worldwide. Shaw markets its residential and commercial products under a variety of brand names.

Johns Manville Corporation ("Johns Manville")

On February 27, 2001, Berkshire acquired Johns Manville. Berkshire purchased all of the outstanding shares of Johns Manville common stock for $13 per share, or $1.8 billion in total. Johns Manville is a leading manufacturer of insulation and building products. Johns Manville manufactures and markets products for building and equipment insulation, commercial and industrial roofing systems, high-efficiency filtration media, and fibers and non-woven mats used as reinforcements in building and industrial applications.

MiTek Inc. ("MiTek")

On July 31, 2001, Berkshire acquired a 90% equity interest in MiTek from Rexam PLC for approximately $400 million. Existing MiTek management acquired the remaining 10% interest. MiTek, headquartered in Chesterfield, Missouri, produces steel connector products, design engineering software and ancillary services for the building components market.

XTRA Corporation ("XTRA")

On September 20, 2001, Berkshire acquired XTRA through a cash tender offer and subsequent statutory merger for all of the outstanding shares. Holders of XTRA common stock received aggregate consideration of approximately $578 million. XTRA, headquartered in Westport, Connecticut, is a leading operating lessor of transportation equipment, including over-the-road trailers, marine containers and intermodal equipment.

Albecca Inc. ("Albecca")

Effective February 8, 2002, Berkshire acquired all of the outstanding shares of Albecca for approximately $225 million in cash. Albecca designs, manufactures and distributes a complete line of high-quality custom picture framing products primarily under the Larson-Juhl name.

The results of operations for each of these entities are included in Berkshire's consolidated results of operations from the effective date of each merger. The following table sets forth certain unaudited consolidated earnings data for the first quarter of 2001, as if each of the acquisitions discussed above were consummated on the same terms at the beginning of 2001. Pro forma results for the first quarter of 2002 were not materially different from reported results. Dollars are in millions except per share amount.

Fruit of the Loom ("FOL")

On April 30, 2002, Berkshire acquired for cash the basic apparel business of Fruit of the Loom, LTD ("FOL entities"). Prior to the acquisition, the FOL entities operated as debtors-in-possession pursuant to its filing under Chapter 11 of the U.S. Bankruptcy Code. On April 19, 2002, the U.S. Bankruptcy Court for the District of Delaware confirmed the FOL reorganization plan, which provided for the sale of the basic apparel business to Berkshire.

The FOL apparel business is a leading vertically integrated basic apparel company manufacturing and marketing underwear, activewear, casualwear and childrenswear. The FOL apparel business operates on a worldwide basis and sells its products principally in North America under the Fruit of the Loom and BVD brand names.

In March 2000, Berkshire invested approximately $1.24 billion in common stock and a non-dividend paying convertible preferred stock of MidAmerican Energy Holdings Company ("MidAmerican"). In March 2002, Berkshire acquired additional convertible preferred stock of MidAmerican for $402 million. Such investments represent a 9.7% voting interest and a 80.2% economic interest in MidAmerican on a fully-diluted basis. Berkshire and its subsidiaries also hold $778 million of 11% non-transferable trust preferred securities of MidAmerican, of which $455 million were acquired in March 2000 and an additional $323 million were acquired in March 2002. Mr. Walter Scott, Jr., a member of Berkshire’s Board of Directors, controls approximately 86% of the voting interest in MidAmerican.

MidAmerican is a global leader in the production of energy from diversified fuel sources including geothermal, natural gas, hydroelectric, nuclear and coal. MidAmerican also is a leader in the supply and distribution of energy in the U.S. and U.K. consumer markets.

Berkshire’s aggregate investments in MidAmerican are included in the Consolidated Balance Sheets as Investments in MidAmerican Energy Holdings Company. Berkshire is accounting for its investments in the common and non-dividend paying convertible preferred stock pursuant to the equity method. The carrying value of these equity method investments totaled $1,791 million at March 31, 2002 and $1,371 million at December 31, 2001. The 11% non-transferable trust preferred securities are classified as held-to-maturity, and are carried at cost.

The Consolidated Statements of Earnings reflect, as Income from MidAmerican Energy Holdings Company, Berkshire’s proportionate share of MidAmerican’s net income with respect to the investments accounted for pursuant to the equity method, as well as interest earned on the 11% trust preferred securities. Income derived from equity method investments in the first quarter totaled $54 million in 2002 and $35 million in 2001.

Condensed consolidated balance sheets of MidAmerican are as follows. Amounts are in millions.

Condensed consolidated statements of earnings of MidAmerican for the first quarter of 2002 and 2001 are as follows. Amounts are in millions.

Income of Berkshire’s finance and financial products businesses for the first quarter of 2002 and 2001 is shown below (in millions).

Net earnings for the first quarter of 2002 and 2001 are disaggregated in the table that follows. Amounts are after deducting minority interests and income taxes. Dollar amounts are in millions.

A summary follows of underwriting results from Berkshire's insurance businesses for the first quarter of 2002 and 2001. Dollar amounts are in millions.

Berkshire engages in both primary insurance and reinsurance of property and casualty risks. Through General Re, Berkshire also reinsures life and health risks. In primary insurance activities, Berkshire subsidiaries assume defined portions of the risks of loss from persons or organizations that are directly subject to the risks. In reinsurance activities, Berkshire subsidiaries assume defined portions of similar or dissimilar risks that other insurers or reinsurers have subjected themselves to in their own insuring activities. Berkshire’s principal insurance businesses are: (1) GEICO, the sixth largest auto insurer in the United States, (2) General Re, one of the four largest reinsurers in the world, (3) Berkshire Hathaway Reinsurance Group ("BHRG") and (4) Berkshire Hathaway Primary Insurance Group.

GEICO Corporation through its affiliates ("GEICO") provides private passenger auto insurance to customers in 48 states and the District of Columbia. GEICO policies are marketed mainly through direct response methods, in which insureds apply directly to the company for insurance coverage over the telephone, through the mail or via the Internet. This is a significant element in GEICO’s strategy to be a low cost insurer and, yet, provide high value to policyholders.

GEICO’s pre-tax underwriting results for the first quarter of 2002 and 2001 are summarized in the table below. Dollar amounts are in millions.

The international property/casualty operations write quota-share and excess reinsurance on risks around the world. In recent years, the largest international markets have been in Germany and other parts of Western Europe. For the first quarter of 2002, international property/casualty earned premiums decreased $38 million or 6.5% from the comparable 2001 levels. The decline in earned premiums was primarily attributable to decreased premiums in Latin America, including the effect of devaluation of the Argentine peso, and non-renewal of under-performing treaty business at Cologne Re. Partially offsetting these declines were increases in premiums from General Re’s participation in Lloyd’s Syndicate 435 and growth in the U.K. casualty treaty and property facultative businesses. General Re’s share of the premiums, claims and expenses of Lloyd’s Syndicate 435 is 96.7% in 2002 compared to 60.6% in 2001.

Underwriting losses in the international property/casualty operations were unchanged from the first quarter of 2001, as improvement in the broker-market operations was offset by increased losses in direct operations. The direct property/casualty reinsurance operations incurred a net underwriting loss of $42 million in the first quarter of 2002, compared with an underwriting loss of $10 million in the same period of 2001. The direct property/casualty reinsurance results were adversely affected by one large property loss ($29 million) in the United Kingdom. In addition, first quarter 2002 results of the international credit and surety bond business, which has been placed in run-off, included $14 million of net losses arising from two bankruptcies.

For the broker-market operations, a net underwriting loss of $3 million was incurred in the first quarter of 2002 as compared to a $35 million net underwriting loss in the comparable 2001 period. First quarter 2002 results benefited from lower-than-expected property loss activity and improvements in overall market conditions. Broker-market results in the first quarter of 2001 were adversely affected by several large losses, including claims from the sinking of an oil rig off South America and the Seattle earthquake.

General Re conducts a portion of its reinsurance business in Argentina, a country that is currently in the midst of an economic and political crisis. Since the beginning of 2002, the Argentine peso has been significantly devalued relative to the U.S. dollar. It remains uncertain as to what effect this and other actions that may be taken will have on the international property/casualty business. In response to this uncertainty, General Re has reduced the volume of business being written in Argentina.

General Re’s global life/health pre-tax underwriting results for the first quarter of 2002 and 2001 are shown below. Dollar amounts are in millions.

General Re’s global life/health affiliates reinsure such risks worldwide. Earned premiums in the U.S. life/health business decreased $18 million or 6.0% from the same period in 2001. The decline in earned premiums occurred principally due to the run-off of the special risk business. International life/health earned premiums decreased $42 million or 20.2% from the comparable 2001 period. The decrease was primarily due to a 2002 change in reporting Cologne Re’s modified coinsurance business. This change had a minimal impact on net underwriting results, but did reduce premiums earned. Excluding the effect of this change, international life/health earned premiums increased approximately 4.0%.

The U.S. life/health operations produced an underwriting loss of $12 million for the first three months of 2002, compared with a loss of $24 million in the same period of 2001. The improvement was primarily due to lower losses in the individual health operations and decreased mortality in the life segment. The Medicare supplement business in the U.S. individual health operations normally generates losses in the first part of the calendar year, as insureds recover their annual Medicare deductibles covered under the policies. For the first quarter of 2002, Medicare supplement business had an underwriting loss of $11 million, compared with a loss of $16 million in the first quarter of 2001. Results of this business are expected to improve over the remainder of 2002, as was the case in 2001. International life/health results for the first quarter of 2002 produced an underwriting gain of $1 million.

Premiums earned in the first quarter by BHRG operations totaled $755 million in 2002, an increase of $595 million over 2001. The increase in premiums earned in 2002 was primarily due to increased amounts earned from retroactive reinsurance ($388 million), catastrophe reinsurance ($85 million) and special risk business ($77 million). The special risk business is primarily commercial property and liability coverages for large or unusual individual risks.

Underwriting losses of BHRG for the first quarter of 2002 were $8 million compared to $78 million in 2001. The comparative improvement in results reflects increased underwriting gains from catastrophe reinsurance and specialty risk business. For the first quarter of both 2002 and 2001, relatively insignificant amounts of property catastrophe losses were incurred and, as a result, these businesses generated underwriting gains of $157 million in 2002 and $51 million in 2001. Berkshire management believes and accepts that large losses will eventually occur in the property catastrophe business. The timing and magnitude of catastrophe losses can cause periodic underwriting results to be exceptionally volatile.

Underwriting losses of BHRG for the first quarter include losses from the amortization of deferred charges on retroactive reinsurance policies totaling $109 million in 2002 and $94 million in 2001. These charges reflect the systematic recognition of time-value-of-money concepts that are factored into the premiums established for retroactive policies, primarily because the claims are expected to be settled over extended time periods. Deferred charges are established at the in