6.
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RISKS AND UNCERTAINTIES
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The Master Trust holds various investment securities. Investment securities are exposed to various risks such as interest
rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could
materially affect participants account balances and the amounts reported in the Statement of Net Assets Available for Benefits.
7.
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PARTY-IN-INTEREST
TRANSACTIONS
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The Plan, through the Master Trust, invests in Class B shares of Berkshire
Hathaway within the Berkshire Hathaway Class B stock fund. The following activity is presented at the Master Trust level: during the years ended December 31, 2019 and 2018, 27,765 and 115,926 Class B shares, respectively, of Berkshire
Hathaway at a cost of $5,604,251 and $23,633,184 respectively, were purchased within the fund. All purchased shares were acquired at the then current market value on the open market. In addition, during the years ended December 31, 2019 and 2018,
the fund sold or distributed to participants 97,870 and 122,059 Class B shares, respectively, of Berkshire Hathaway and received proceeds of $20,377,139 and $24,803,135, respectively. The realized gains on these sales were $5,206,235 and
$7,371,396 for 2019 and 2018, respectively.
Fees charged to individual participant accounts for loan initiations,
overnight delivery service and brokerage account maintenance and paid to Voya Institutional Trust Company, the Trustee, were $131,525 and $131,978 in 2019 and 2018, respectively. Fees charged to individual participant accounts for investment advice
service and paid to Voya Retirement Advisors, LLC were $499,631 and $465,279 in 2019 and 2018, respectively.
The Plan obtained its latest determination letter dated August 24, 2017, in which the Internal Revenue Service stated
that the Plan, as then designed, was in compliance with the applicable requirements of Section 401 of the Internal Revenue Code. The Plan has been amended since receiving this determination letter. However, the Company believes that the Plan
currently is designed and is being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, no provision for income taxes has been included in the Plans financial statements.
The Plan administrator has analyzed the tax positions taken by the Plan and has concluded that, as of December 31, 2019,
there are no uncertain positions taken or expected to be taken that would require such recognition or disclosure in the financial statements.
The Plan was adopted with the expectation that it will continue indefinitely. The Company may, however, terminate the Plan at
any time. In addition, the management of any subsidiary may withdraw such subsidiary from the Plan at any time. In the event of termination of the Plan, all participants immediately will become fully vested in the value of their account balances.
Subsequent to year end, physical and economic conditions worldwide have been impacted by the
COVID-19 pandemic. There are uncertainties surrounding COVID-19s impact on the economy as a whole, on businesses, and on the investment market. There is also
uncertainty regarding the positive impact of any federal government relief efforts through the date of this report. Accordingly, the impact of the global pandemic on the current and future operations of the Company or Plan is unknown. In response to
the pandemic, the Plan was amended in April 2020 to permit Coronavirus Related Distributions, pursuant to the CARES act.
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