Equity method investments

12 Months Ended

Dec. 31, 2023

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. Currently, the most significant of these are our investments in the common stock of The Kraft Heinz Company (“Kraft Heinz”) and Occidental. As of December 31, 2023, we owned 26.7% of the Kraft Heinz outstanding common stock and 27.8% of the outstanding Occidental common stock, which excluded 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 carrying values of these two investments in addition to the carrying values of our other significant equity method investments are summarized as follows (in millions).

	Carrying Value				Fair Value
	December 31,				December 31,
	2023		2022		2023		2022
Kraft Heinz	$	13,230	$	12,937	$	12,035	$	13,249
Occidental		15,410		11,484		14,552		12,242
Other		426		3,629
	$	29,066	$	28,050

As of December 31, 2023, the excess of our carrying values over the fair values of our investments in Kraft Heinz and Occidental were 9% and 6%, respectively, of the carrying values. We evaluated our investments in Kraft Heinz and Occidental for other-than-temporary impairment as of December 31, 2023, and based on the prevailing facts and circumstances, concluded the recognition of impairment charges in earnings were not required.

Our other significant equity method investments included our 50% interest in Berkadia Commercial Mortgage LLC (“Berkadia”), in which Jefferies Financial Group (“Jefferies”) owns the other 50% interest, and PTC through January 31, 2023. Berkadia engages in mortgage banking, investment sales and servicing of commercial/multi-family real estate loans. 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.

Beginning February 1, 2023, we ceased accounting for PTC under the equity method and began consolidating PTC for financial reporting purposes. Our investment in PTC under the equity method was $3.2 billion at December 31, 2022. Equity method earnings attributable to PTC were $105 million in 2023, $812 million in 2022 and $474 million in 2021.

As of December 31, 2023, 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, 2023 by approximately $9.6 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 2023 for Occidental included our share of its earnings for the fourth quarter of 2022 and first nine months of 2023. The earnings we recorded in 2022 for Occidental included our share of its earnings from August 4, 2022 through September 30, 2022.

	Equity in Earnings						Distributions Received
	Year ended December 31,						Year ended December 31,
	2023		2022		2021		2023		2022		2021
Kraft Heinz	$	758	$	628	$	269	$	521	$	521	$	521
Occidental		1,077		323		—		142		24		—
Other		138		912		617		58		284		1,057
	$	1,973	$	1,863	$	886	$	721	$	829	$	1,578

Notes to Consolidated Financial Statements

(5)Equity method investments

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

	December 30, 2023		December 31, 2022
Assets	$	90,339	$	90,513
Liabilities		40,617		41,643

	Year ended
	December 30, 2023		December 31, 2022		December 25, 2021
Sales	$	26,640	$	26,485	$	26,042
Net earnings attributable to Kraft Heinz common shareholders		2,855		2,363		1,012

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

	September 30, 2023		December 31, 2022
Assets	$	71,827	$	72,609
Liabilities		42,515		42,524

	Twelve months ending September 30, 2023
Total revenues and other income	$	29,715
Net earnings attributable to Occidental common shareholders		4,471