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| They carry Kraft and Oxy on the books using the "equity method" of accounting. Because of GAAP they took an impairment charge on those holdings. With Oxy it's probably kind of nice because they took a non cash impairment which helps them on taxes and Oxy has since recovered in price with the run up in oil. As far as I am aware, once you take a goodwill write down you never re-mark that investment on the balance sheet. Kraft is a little different, they over paid for Kraft and that is always gonna be kind of a lousy investment that has performed below their standards, so that is a real mark. But with Oxy, BRK will come out a little ahead on that accounting requirement.... | |
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Word smithing
