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Equity method investments | 12 Months Ended
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Dec. 31, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Equity method investments | (5) Equity method investments Berkshire and its subsidiaries hold investments in certain businesses that are accounted for pursuant to the equity method. The most significant of these are our investments in the common stock of The Kraft Heinz Company (“Kraft Heinz”) and Occidental. We began acquiring common stock of Occidental in 2022 and our aggregate voting interest in Occidental common stock exceeded 20% on August 4, 2022. We adopted the equity method as of that date. As of December 31, 2024, we owned 27.2% of the Kraft Heinz outstanding common stock and 28.2% of the outstanding Occidental common stock which excludes the potential effect of the exercise of Occidental’s outstanding 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. We also own a 50% interest in Berkadia Commercial Mortgage LLC (“Berkadia”), which is included in other in the following table. Jefferies Financial Group Inc. (“Jefferies”) owns the other 50% interest. Berkadia engages in mortgage banking, investment sales and servicing commercial/multi-family real estate loans. Berkadia’s commercial paper borrowing capacity (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. The fair values and carrying values of these investments are included in the following table (in millions).
| Carrying Value |  |  | Fair Value |
| December 31, |  |  | December 31, |
| 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Kraft Heinz | $ | 13,395 |  |  | $ | 13,230 |  |  | $ | 9,994 |  |  | $ | 12,035 |
Occidental |  | 17,287 |  |  |  | 15,410 |  |  |  | 13,053 |  |  |  | 14,552 |
Other |  | 452 |  |  |  | 426 |  |  |  |  |  |  |
| $ | 31,134 |  |  | $ | 29,066 |  |  |  |  |  |  |
Notes to Consolidated Financial Statements (5) Equity method investments Kraft Heinz and Occidental common stocks are publicly traded. As of December 31, 2024, the excess of our carrying value over the fair value of each of these investments based on their respective market prices was approximately 25% of the carrying value. We evaluated these investments for other-than-temporary impairment as of December 31, 2024. For each investment, we considered our ability and intent to hold the investment until the fair value exceeds carrying value, the magnitude and duration of the decline in fair value, the operating results of the company, as well as other factors. Based on the prevailing facts and circumstances, we concluded the recognition of an impairment charge in earnings was not required. As of December 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 September 30, 2024 by approximately $9.9 billion. Based upon the limited information available to us, we concluded the excess represents goodwill. As described in Note 2, we ceased accounting for Pilot under the equity method as of February 1, 2023. Equity method earnings attributable to Pilot were $105 million for the month ending January 31, 2023 and are reported in other in the following table. 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. Our earnings and distributions received from equity method investments are summarized in the following table (in millions).
| Equity in Earnings |  |  | Distributions Received |
| Year ended December 31, |  |  | Year ended December 31, |
| 2024 |  |  | 2023 |  |  | 2022 |  |  | 2024 |  |  | 2023 |  |  | 2022 |
Kraft Heinz | $ | 745 |  |  | $ | 758 |  |  | $ | 628 |  |  | $ | 521 |  |  | $ | 521 |  |  | $ | 521 |
Occidental |  | 1,005 |  |  |  | 1,077 |  |  |  | 323 |  |  |  | 207 |  |  |  | 142 |  |  |  | 24 |
Other |  | 91 |  |  |  | 138 |  |  |  | 912 |  |  |  | 65 |  |  |  | 58 |  |  |  | 284 |
| $ | 1,841 |  |  | $ | 1,973 |  |  | $ | 1,863 |  |  | $ | 793 |  |  | $ | 721 |  |  | $ | 829 |
Summarized consolidated financial information of Kraft Heinz follows (in millions).
| December 28, 2024 |  |  | December 30, 2023 |
Assets | $ | 88,287 |  |  | $ | 90,339 |
Liabilities |  | 38,962 |  |  |  | 40,617 |
| Year ended |
| December 28, 2024 |  |  | December 30, 2023 |  |  | December 31, 2022 |
Sales | $ | 25,846 |  |  | $ | 26,640 |  |  | $ | 26,485 |
Net earnings attributable to common shareholders |  | 2,744 |  |  |  | 2,855 |  |  |  | 2,363 |
Summarized consolidated financial information of Occidental follows (in millions).
| September 30, 2024 |  |  | September 30, 2023 |
Assets | $ | 85,803 |  |  | $ | 71,287 |
Liabilities |  | 50,869 |  |  |  | 42,515 |
| Twelve months ending September 30, |
| 2024 |  |  | 2023 |
Total revenues and other income | $ | 27,572 |  |  | $ | 29,715 |
Net earnings attributable to common shareholders |  | 3,703 |  |  |  | 4,471 |

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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/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: 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 3: 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 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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