Equity method investments

3 Months Ended

Mar. 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

Note 5. Equity method investments

Berkshire and its subsidiaries hold investments in certain entities 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 March 31, 2025, we owned 27.3% of the outstanding Kraft Heinz 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”). 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 our carrying values of these investments are included in the following table (in millions).


	Carrying Value				Fair Value
	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Kraft Heinz	$	13,523	$	13,395	$	9,903	$	9,994
Occidental		17,165		17,287		13,078		13,053
Berkadia		456		452
	$	31,144	$	31,134

Notes to Consolidated Financial Statements

Note 5. Equity method investments

Kraft Heinz and Occidental common stocks are publicly traded. As of March 31, 2025, the excess of the carrying values over the fair values of our investments in Kraft Heinz and Occidental was 27% and 24%, respectively, of the carrying values of each investment. We evaluated these investments for other-than-temporary impairment as of March 31, 2025. 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 and financial condition 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 March 31, 2025.

As of March 31, 2025, 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, 2024 by approximately $9.9 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). The earnings we recorded in the first quarter of 2025 and 2024 for Occidental represented our share of its earnings for the quarter ended December 31, 2024 and 2023, respectively.


	Equity in Earnings					Distributions Received
	First Quarter					First Quarter
	2025			2024		2025		2024
Kraft Heinz	$	195		$	215	$	130	$	130
Occidental		(82	)		263		56		41
Berkadia		13			15		9		4
	$	126		$	493	$	195	$	175

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


	March 29, 2025		December 28, 2024
Assets	$	90,274	$	88,287
Liabilities		40,669		38,962


	First Quarter
	2025		2024
Sales	$	5,999	$	6,411
Net earnings attributable to common shareholders		712		801

Summarized consolidated financial information of Occidental follows (in millions).


	December 31, 2024		September 30, 2024
Assets	$	85,445	$	85,803
Liabilities		50,965		50,869


	Quarter ended December 31,
	2024			2023
Total revenues and other income	$	6,837		$	7,529
Net earnings (loss) attributable to common shareholders		(297	)		1,029