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 June 30, 2023, we owned 26.5% of the outstanding Kraft Heinz common stock and 25.1% of the outstanding Occidental common stock, which excludes 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.

The common stock of Kraft Heinz and Occidental are publicly traded. The fair values and our carrying values of these investments in addition to the carrying values of our other significant equity method investments are summarized as follows (in millions). We evaluated our investments in Kraft Heinz and Occidental for other-than-temporary impairment as of June 30, 2023, and based on the prevailing facts and circumstances, concluded the recognition of an impairment charge in earnings was not required.


	Carrying Value				Fair Value
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Kraft Heinz	$	13,199	$	12,937	$	11,553	$	13,249
Occidental		13,861		11,484		13,179		12,242
Other		433		3,629
	$	27,493	$	28,050

Our other significant equity method investments included Pilot through January 31, 2023. Beginning February 1, 2023, we ceased accounting for Pilot under the equity method and began consolidating Pilot for financial reporting purposes. Our investment in Pilot under the equity method was $3.2 billion at December 31, 2022. Other significant equity method investments also included our 50% interest in Berkadia Commercial Mortgage LLC (“Berkadia”) with Jefferies Financial Group Inc. (“Jefferies”) owning the other 50% interest. Berkadia provides capital solutions, investment sales advisory and mortgage servicing for multifamily and commercial real estate. 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.

The carrying values of our investments in Kraft Heinz and Berkadia approximate our share of the net 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 March 31, 2023 by approximately $9 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 indicated, we are reporting the equity method effects for Occidental on a one-quarter lag. Thus, the earnings we recorded in 2023 related to Occidental’s earnings for the fourth quarter of 2022 and first quarter of 2023. Equity method earnings attributable to Pilot were $105 million for the month ending January 31, 2023, $95 million for the second quarter of 2022 and $202 million for the first six months of 2022.


	Equity in Earnings								Distributions Received
	Second Quarter				First Six Months				Second Quarter				First Six Months
	2023		2022		2023		2022		2023		2022		2023		2022
Kraft Heinz	$	265	$	71	$	487	$	277	$	130	$	130	$	260	$	260
Occidental		234		—		604		—		36		—		61		—
Other		12		133		108		266		21		88		21		90
	$	511	$	204	$	1,199	$	543	$	187	$	218	$	342	$	350

Summarized consolidated financial information of Kraft Heinz follows (in millions).


	July 1, 2023		December 31, 2022
Assets	$	90,956	$	90,513
Liabilities		40,942		41,643


	Second Quarter				First Six Months
	2023		2022		2023		2022
Sales	$	6,721	$	6,554	$	13,210	$	12,599
Net earnings attributable to Kraft Heinz common shareholders		1,000		265		1,836		1,041


	March 31, 2023		December 31, 2022
Assets	$	71,600	$	72,609
Liabilities		42,041		42,524


	Quarter ending March 31, 2023		Six months ending March 31, 2023
Total revenues and other income	$	7,258	$	15,584
Net earnings attributable to Occidental common shareholders		983		2,710