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Equity method investments | 6 Months Ended
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Jun. 30, 2025
Equity Method Investments and Joint Ventures [Abstract] |
Equity method investments | Note 5. Equity method investments Berkshire and its subsidiaries hold investments 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. As of June 30, 2025, we owned 27.4% of the outstanding Kraft Heinz common stock and 28.1% 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”). 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. Our investments in Kraft Heinz, Occidental and Berkadia are summarized as follows (in millions).
| Carrying Value |  |  | Fair Value |
| June 30, 2025 |  |  | December 31, 2024 |  |  | June 30, 2025 |  |  | December 31, 2024 |
Kraft Heinz | $ | 8,408 |  |  | $ | 13,395 |  |  | $ | 8,408 |  |  | $ | 9,994 |
Occidental |  | 16,458 |  |  |  | 17,287 |  |  |  | 11,130 |  |  |  | 13,053 |
Berkadia |  | 457 |  |  |  | 452 |  |  |  |  |  |  |
| $ | 25,323 |  |  | $ | 31,134 |  |  |  |  |  |  |
Notes to Consolidated Financial Statements Note 5. Equity method investments Our equity in earnings and distributions received from equity method investments are as follows (in millions).
| Equity in Earnings |  |  | Distributions Received |
| Second Quarter |  |  | First Six Months |  |  | Second Quarter |  |  | First Six Months |
| 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Kraft Heinz* | $ | (4,991 | ) |  | $ | 27 |  |  | $ | (4,796 | ) |  | $ | 242 |  |  | $ | 130 |  |  | $ | 130 |  |  | $ | 260 |  |  | $ | 260 |
Occidental* |  | 216 |  |  |  | 200 |  |  |  | 134 |  |  |  | 463 |  |  |  | 64 |  |  |  | 55 |  |  |  | 120 |  |  |  | 96 |
Berkadia |  | 30 |  |  |  | 25 |  |  |  | 43 |  |  |  | 40 |  |  |  | 29 |  |  |  | 14 |  |  |  | 38 |  |  |  | 18 |
| $ | (4,745 | ) |  | $ | 252 |  |  | $ | (4,619 | ) |  | $ | 745 |  |  | $ | 223 |  |  | $ | 199 |  |  | $ | 418 |  |  | $ | 374 |
—————— * We report our equity earnings in Occidental’s earnings on a one-quarter lag and, as indicated below, in the second quarter of 2025 we began reporting our equity earnings in Kraft Heinz’s earnings on a one-quarter lag. Kraft Heinz common stock is publicly traded and its fair values shown on the preceding page were based upon quoted market prices. In evaluating our investment in Kraft Heinz for other-than-temporary impairment in the second quarter of 2025, 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, and the operating results and financial condition of the company. We also considered certain changes in circumstances that occurred in the second quarter of 2025. Berkshire’s representatives on the Kraft Heinz Board of Directors stepped down on May 19, 2025, and the timing and extent of financial information Berkshire receives is now limited to the information that Kraft Heinz makes available to the public. On May 20, 2025, Kraft Heinz announced that it was evaluating potential strategic transactions to enhance shareholder value, although Kraft Heinz indicated there was no assurance that its process will result in a transaction or assurance to its outcome or timing. Given these factors, as well as prevailing economic and other uncertainties, we concluded that the unrealized loss, represented by the difference between the carrying value of our investment and its fair value, was other-than-temporary. Accordingly, in the second quarter we recorded a pre-tax impairment loss of approximately $5.0 billion as a component of our equity in the earnings of Kraft Heinz, which reduced the carrying value of our investment in Kraft Heinz to fair value. As the timing and extent of financial information we receive from Kraft Heinz is now limited to the information Kraft Heinz makes publicly available, we believe that such information will no longer be available in time for concurrent inclusion in our Consolidated Financial Statements. Therefore, beginning with our second quarter of 2025, we are recognizing the equity method effects attributable to our investment in Kraft Heinz on a one-quarter lag. The carrying value of our investment in Kraft Heinz at June 30, 2025 was less than our proportionate share of Kraft Heinz shareholders’ equity. Summarized financial information of Kraft Heinz follows (in millions).
| March 29, 2025 |  |  | December 28, 2024 |
Assets | $ | 90,274 |  |  | $ | 88,287 |
Liabilities |  | 40,669 |  |  |  | 38,962 |
| Quarter Ended March 29, 2025 |  |  | Quarter Ended June 29, 2024 |  |  | Six Months Ended June 29, 2024 |
Sales | $ | 5,999 |  |  | $ | 6,476 |  |  | $ | 12,887 |
Net earnings attributable to common shareholders |  | 712 |  |  |  | 102 |  |  |  | 903 |
Occidental common stock is also publicly traded and its fair values shown on the preceding page were based upon quoted market prices. As of June 30, 2025, the excess of the carrying value over the fair value of our investment in Occidental common stock was $5.3 billion (or 32% of our carrying value). In evaluating the investment in Occidental for other-than-temporary impairment as of June 30, 2025, 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, and the operating results and financial condition of the company, as well as our current expectations and other factors. Based on the prevailing facts and circumstances, we concluded the recognition of an impairment charge in earnings for Occidental was not required as of June 30, 2025. However, our current expectations and intentions concerning this investment may change in the future, which may result in the recognition of an impairment loss at that time. Our carrying value in Occidental common stock as of June 30, 2025 exceeded our share of Occidental common shareholders’ equity as of March 31, 2025 by approximately $9.0 billion. Notes to Consolidated Financial Statements Note 5. Equity method investments Summarized financial information of Occidental follows (in millions).
| March 31, 2025 |  |  | September 30, 2024 |
Assets | $ | 84,967 |  |  | $ | 85,803 |
Liabilities |  | 49,862 |  |  |  | 50,869 |
| Quarter Ended March 31, |  |  | Six Months Ended March 31, |
| 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Total revenues and other income | $ | 6,843 |  |  | $ | 6,010 |  |  | $ | 13,680 |  |  | $ | 13,539 |
Net earnings attributable to common shareholders |  | 766 |  |  |  | 718 |  |  |  | 469 |  |  |  | 1,747 |

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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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