CLAYTON HOMES, INC. 401(K) RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2019 and 2018
NOTE 3 – TAX STATUS OF PLAN (Continued)
The plan administrator has analyzed the tax positions taken by the
Plan, and has concluded that as of December 31, 2019 and 2018,
there are no uncertain positions taken or expected to be taken that
would require recognition of a liability (or asset) or disclosure
in the financial statements. The Plan is subject to routine
audits by taxing jurisdictions; however, there are currently no
audits for any tax periods in progress.
NOTE 4 – PLAN TERMINATION
Although it has not expressed any intention to do so, the Company
has the right to discontinue contributions at any time and to
terminate the Plan subject to the related provisions of ERISA.
NOTE 5 – PARTY-IN-INTEREST
Parties-in-interest are defined
under Department of Labor regulations as any fiduciary of the Plan,
any party rendering service to the Plan, the employer, and certain
others. The Plan holds mutual funds managed by Fidelity Investments
which qualify as party-in-interest investments.
The Plan also holds notes receivable from participants that qualify
as party-in-interest transactions.
The Plan’s payments of administrative fees to Fidelity Investments
of $560,779 in 2019 and payments of investment management fees also
qualify as party-in-interest
The Plan also holds 166,108 shares and 161,690 shares at
December 31, 2019 and 2018, respectively, of Berkshire
Hathaway Class B Common Stock valued at $37,623,356 and
$33,013,797 at December 31, 2019 and 2018, respectively.
Realized gains and losses related to these shares of $1,079,739 at
December 31, 2019 qualify as party-in-interest transactions.
Berkshire Hathaway Inc. owns 100% of the Plan sponsor.
NOTE 6 – SUBSEQUENT EVENTS
The Plan has implemented certain provisions allowed by the
Coronavirus Aid, Relief, and Economic Security Act (the CARES Act)
and the Setting Every Community Up for Retirement Enhancement Act
of 2019 (the SECURE Act), which change the Plan to, among others,
allow certain eligible individuals to receive coronavirus-related
distributions of up to $100,000, allow loan repayments be deferred
up to one year, suspend required minimum distributions, and delay
the commencement date for required minimum distributions. The
optional features within these acts are currently being assessed
but have not been implemented to date. Written amendments to the
Plan to reflect these operational changes will be adopted at a
later date in accordance with applicable law and IRS guidance.