Fair value measurements

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair value measurements

Note 17. Fair value measurements

Our financial assets and liabilities are summarized below, with fair values shown according to the fair value hierarchy (in millions). The carrying values of cash and cash equivalents, U.S. Treasury Bills, other receivables and accounts payable, accruals and other liabilities are considered to be reasonable estimates of or otherwise approximate the fair values.

	Carrying Value		Fair Value		Level 1		Level 2		Level 3
March 31, 2025
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations    and agencies	$	4,042	$	4,042	$	4,008	$	34	$	—
Foreign governments		9,452		9,452		9,330		122		—
Corporate and other		1,541		1,541		—		1,043		498
Investments in equity securities		263,735		263,735		253,939		10		9,786
Investments in Kraft Heinz & Occidental common stock		30,688		22,981		22,981		—		—
Loans and finance receivables		28,131		27,519		—		385		27,134
Derivative contract assets (1)		186		186		31		138		17
Derivative contract liabilities (1)		244		244		15		133		96
Notes payable and other borrowings:
Insurance and other		44,461		39,698		—		39,662		36
Railroad, utilities and energy		81,466		74,876		—		74,876		—
December 31, 2024
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations    and agencies	$	4,459	$	4,459	$	4,425	$	34	$	—
Foreign governments		9,362		9,362		9,199		163		—
Corporate and other		1,543		1,543		—		1,041		502
Investments in equity securities		271,588		271,588		261,910		10		9,668
Investments in Kraft Heinz & Occidental common stock		30,682		23,047		23,047		—		—
Loans and finance receivables		27,798		27,579		—		810		26,769
Derivative contract assets (1)		201		201		33		158		10
Derivative contract liabilities (1)		234		234		15		143		76
Notes payable and other borrowings:
Insurance and other		44,885		40,181		—		40,158		23
Railroad, utilities and energy		79,877		72,506		—		72,506		—

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(1) Assets are included in other assets, and liabilities are included in accounts payable, accruals and other liabilities.

Notes to Consolidated Financial Statements

Note 17. Fair value measurements

The fair values of substantially all of our financial instruments were measured using market or income approaches. The hierarchy for measuring fair value consists of Levels 1 through 3, which are described below.

Level 1 – Inputs represent unadjusted quoted prices for identical assets or liabilities exchanged in active markets.

Level 2 – Inputs include directly or indirectly observable inputs (other than Level 1 inputs) such as quoted prices for similar assets or liabilities exchanged in active or inactive markets; quoted prices for identical assets or liabilities exchanged in inactive markets; other inputs that may be considered in fair value determinations of the assets or liabilities, such as interest rates and yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Pricing evaluations generally reflect discounted expected future cash flows, which incorporate yield curves for instruments with similar characteristics, such as credit ratings, estimated durations and yields for other instruments of the issuer or entities in the same industry sector.

Level 3 – Inputs include unobservable inputs used in the measurement of assets and liabilities. Management is required to use its own assumptions regarding unobservable inputs because there is little, if any, market activity in the assets or liabilities and it may be unable to corroborate the related observable inputs. Unobservable inputs require management to make certain projections and assumptions about the information that would be used by market participants in valuing assets or liabilities.

Reconciliations of significant assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) follow (in millions).

	Balance at January 1		Gains (losses) in earnings		Balance at March 31
Investments in equity securities:
2025	$	9,663	$	117	$	9,780
2024		10,468		199		10,667

Quantitative information as of March 31, 2025 for the significant assets and liabilities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) follows (dollars in millions).

	Fair Value		Principal Valuation Techniques	Unobservable Inputs	Weighted Average
Investments in equity securities:
Preferred stock	$	8,618	Discounted cash flow	Expected duration	5 years
				Discounts for liquidity    and subordination	325 bps
Common stock warrants		1,162	Warrant pricing model	Expected duration	6 years
				Volatility	42%

Investments in equity securities in the preceding table include our investments in certain preferred stock and common stock warrants that do not have readily determinable market values as defined by GAAP. These investments are private placements and are not traded in securities markets. We applied discounted cash flow techniques in valuing the preferred stock and we made assumptions regarding the expected duration of the investment and the effects of illiquidity and subordination in liquidation. In valuing the common stock warrants, we used a warrant valuation model. While most of the inputs to the warrant model are observable, we made assumptions regarding the expected duration and volatility.