"Berkshire Hathaway removed Kraft Heinz from the list of operating companies on its website earlier this year, weeks before writing down its investment in the food and beverage giant and leaving its board of directors. The famed investor's conglomerate took Kraft off its subsidiaries page in April, Business Insider determined using the Wayback Machine, a digital archive that stores snapshots of webpages on different dates."
"Berkshire accounts for its roughly 27% stake in Kraft using the equity method, meaning Buffett and his colleagues recorded it at cost and periodically adjust its carrying value to reflect Berkshire's share of Kraft's profits and losses. On May 19, Berkshire's two board representatives stepped down. Berkshire also said in its second-quarter earnings that it was recording a $5 billion impairment loss on its Kraft position, cutting its carrying value to match its fair value of $8.4 billion."
"Buffett and his team said they had considered their "ability and intent" to remain invested until the fair value exceeded carrying value, the "magnitude and duration" of the decline in fair value, and Kraft's operating results and finances. They also took into account the two board departures and the news that Kraft was evaluating potential strategic transactions, they said, and determined their unrealized loss on the holding was "other-than-temporary.""
Berkshire Hathaway removed Kraft Heinz from its operating companies list in April, according to archived webpage snapshots. Berkshire holds roughly a 27% stake in Kraft accounted for under the equity method and adjusts carrying value to reflect Kraft's profits and losses. On May 19, Berkshire's two board representatives resigned. Berkshire recorded a $5 billion impairment in the second quarter, cutting the carrying value to a fair value of $8.4 billion. Berkshire cited considerations including ability and intent to remain invested, magnitude and duration of the decline, operating results, board departures, and potential strategic transactions, and deemed the loss other-than-temporary. The removal's intent remains unclear; Kraft was an unusual, non-wholly owned entry among mostly wholly owned subsidiaries.
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