Fair value measurements (Tables)

3 Months Ended

Mar. 31, 2022

Financial assets and liabilities measured at fair value on a recurring basis

Our financial assets and liabilities are summarized below as of March 31, 2022 and December 31, 2021, 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 their fair values.

	Carrying Value		Fair Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2022
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and agencies	$	8,708	$	8,708	$	8,669	$	39	$	—
Foreign governments		11,080		11,080		10,543		537		—
Corporate bonds		1,590		1,590		—		1,590		—
Other		340		340		—		340		—
Investments in equity securities		390,538		390,538		378,190		7		12,341
Investment in Kraft Heinz common stock		13,191		12,819		12,819		—		—
Loans and finance receivables		21,265		22,584		—		2,135		20,449
Derivative contract assets ⁽¹⁾		636		636		24		528		84
Derivative contract liabilities ⁽¹⁾		454		454		1		143		310
Notes payable and other borrowings:
Insurance and other		44,890		45,145		—		45,101		44
Railroad, utilities and energy		74,771		79,234		—		79,234		—
December 31, 2021
Investments in fixed maturity securities:
U.S. Treasury, U.S. government corporations and agencies	$	3,303	$	3,303	$	3,261	$	42	$	—
Foreign governments		10,994		10,994		10,286		708		—
Corporate bonds		1,774		1,774		—		1,774		—
Other		363		363		—		363		—
Investments in equity securities		350,719		350,719		339,225		8		11,486
Investment in Kraft Heinz common stock		13,112		11,683		11,683		—		—
Loans and finance receivables		20,751		22,174		—		2,178		19,996
Derivative contract assets ⁽¹⁾		329		329		6		230		93
Derivative contract liabilities ⁽¹⁾		376		376		2		150		224
Notes payable and other borrowings:
Insurance and other		39,272		42,339		—		42,292		47
Railroad, utilities and energy		74,990		87,065		—		87,065		—

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

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) for the three months ended March 31, 2022 and 2021 follow (in millions).

	Balance at beginning of year			Gains included in earnings		Acquisitions, dispositions and settlements			Transfers out of Level 3		Balance at March 31
Investments in equity securities:
2022	$	11,480		$	855	$	—		$	—	$	12,335
2021		8,978			823		600			—		10,401

Equity index put option contract liabilities:
2021		(1,065	)		489		(1	)		—		(577	)

Fair value assets and liabilities measured on recurring basis, unobservable inputs, additional information

Quantitative information as of March 31, 2022 with respect to 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

10,497

Discounted cash flow

Expected duration

7 years

Discount for transferability

restrictions and subordination

372 bps

Common stock warrants

1,838

Warrant pricing model

Expected duration

7 years

Volatility

38%