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Equity method investments | 3 Months Ended
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Mar. 31, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Equity method investments | Note 6. Equity method investments Berkshire and its subsidiaries hold investments in certain businesses that are accounted for pursuant to the equity method. Currently, the most significant of these are our investments in the common stock of The Kraft Heinz Company (“Kraft Heinz”) and Occidental. As of March 31, 2024, we owned 26.8% of the outstanding Kraft Heinz common stock and 28.2% of the outstanding Occidental common stock, which excluded the potential effect of the exercise of the Occidental common stock warrants. Kraft Heinz manufactures and markets food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee and other grocery products. Occidental is an international energy company, whose activities include oil and natural gas exploration, development and production and chemicals manufacturing businesses. Occidental’s financial information is not available in time for concurrent reporting in our Consolidated Financial Statements. Therefore, we report the equity method effects for Occidental on a one-quarter lag. Kraft Heinz and Occidental common stocks are publicly traded. The fair values and our carrying values of these investments are included in the following table (in millions).
| Carrying Value |  |  | Fair Value |
| March 31, 2024 |  |  | December 31, 2023 |  |  | March 31, 2024 |  |  | December 31, 2023 |
Kraft Heinz | $ | 13,274 |  |  | $ | 13,230 |  |  | $ | 12,009 |  |  | $ | 12,035 |
Occidental |  | 15,873 |  |  |  | 15,410 |  |  |  | 16,119 |  |  |  | 14,552 |
Other |  | 438 |  |  |  | 426 |  |  |  |  |  |  |
| $ | 29,585 |  |  | $ | 29,066 |  |  |  |  |  |  |
As of March 31, 2024, the excess of our carrying value over the fair value of our investment in Kraft Heinz was 9.5% of the carrying value. We evaluated this investment for other-than-temporary impairment as of March 31, 2024, and based on the prevailing facts and circumstances, concluded the recognition of an impairment charge in earnings was not required. We also own a 50% interest in Berkadia Commercial Mortgage LLC (“Berkadia”), which is accounted for under the equity method and is included in other in the preceding table. Jefferies Financial Group Inc. (“Jefferies”) owns the other 50% interest. Berkadia engages in mortgage banking, investment sales and servicing of commercial/multi-family real estate loans. Berkadia’s commercial paper borrowing capacity (currently limited to $1.5 billion) is supported by a surety policy issued by a Berkshire insurance subsidiary. Jefferies is obligated to indemnify us for one-half of any losses incurred under the policy. As of March 31, 2024, the carrying values of our investments in Kraft Heinz and Berkadia approximated our share of shareowners’ equity of each of these entities. The carrying value of our investment in Occidental common stock exceeded our share of its shareholders’ equity as of December 31, 2023 by approximately $9.7 billion. Based upon the limited information available to us, we concluded the excess represents goodwill. Our earnings and distributions received from equity method investments are summarized in the following table (in millions). As previously described, on February 1, 2023, we ceased accounting for Pilot under the equity method. Equity method earnings attributable to Pilot were $105 million for the month ending January 31, 2023. The earnings we recorded in the first quarter of 2024 and 2023 for Occidental represented our share of its earnings for the fourth quarter of 2023 and 2022, respectively.
| Equity in Earnings |  |  | Distributions Received |
| First Quarter |  |  | First Quarter |
| 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Kraft Heinz | $ | 215 |  |  | $ | 222 |  |  | $ | 130 |  |  | $ | 130 |
Occidental |  | 263 |  |  |  | 370 |  |  |  | 41 |  |  |  | 25 |
Other |  | 15 |  |  |  | 96 |  |  |  | 4 |  |  |  | — |
| $ | 493 |  |  | $ | 688 |  |  | $ | 175 |  |  | $ | 155 |
Notes to Consolidated Financial Statements Note 6. Equity method investments Summarized consolidated financial information of Kraft Heinz follows (in millions).
| March 30, 2024 |  |  | December 30, 2023 |
Assets | $ | 90,309 |  |  | $ | 90,339 |
Liabilities |  | 40,621 |  |  |  | 40,617 |
| First Quarter |
| 2024 |  |  | 2023 |
Sales | $ | 6,411 |  |  | $ | 6,489 |
Net earnings attributable to Kraft Heinz common shareholders |  | 801 |  |  |  | 836 |
Summarized consolidated financial information of Occidental follows (in millions).
| December 31, 2023 |  |  | September 30, 2023 |
Assets | $ | 74,008 |  |  | $ | 71,287 |
Liabilities |  | 43,659 |  |  |  | 42,515 |
| Quarter ending December 31, 2023 |  |  | Quarter ending December 31, 2022 |
Total revenues and other income | $ | 7,529 |  |  | $ | 8,326 |
Net earnings attributable to Occidental common shareholders |  | 1,029 |  |  |  | 1,727 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org//323/tableOfContent + Details
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