Berkshire Hathaway 2014 Annual Report Download - page 74
Download and view the complete annual report
Please find page 74 of the 2014 Berkshire Hathaway annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64 -
65 -
66 -
67 -
68 -
69 -
70 -
71 -
72 -
73 -
74 -
75 -
76 -
77 -
78 -
79 -
80 -
81 -
82 -
83 -
84 -
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
 |
 |
Notes to Consolidated Financial Statements (Continued)
(16) Income taxes (Continued)
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax
liabilities are shown below (in millions).
December 31,
2014 2013
Deferred tax liabilities:
Investments – unrealized appreciation and cost basis differences .................... $26,633 $25,660
Deferred charges reinsurance assumed ......................................... 2,721 1,526
Property, plant and equipment ............................................... 34,618 32,409
Other ................................................................... 6,396 6,278
70,368 65,873
Deferred tax assets:
Unpaid losses and loss adjustment expenses .................................... (933) (817)
Unearned premiums ....................................................... (773) (682)
Accrued liabilities ......................................................... (3,575) (3,398)
Derivative contract liabilities ................................................ (206) (374)
Other ................................................................... (2,945) (3,160)
(8,432) (8,431)
Net deferred tax liability ........................................................ $61,936 $57,442
We have not established deferred income taxes on accumulated undistributed earnings of certain foreign subsidiaries. Such
earnings were approximately $10.0 billion as of December 31, 2014 and are expected to remain reinvested indefinitely. Upon
distribution as dividends or otherwise, such amounts would be subject to taxation in the U.S. as well as foreign countries.
However, U.S. income tax liabilities would be offset, in whole or in part, by allowable tax credits deriving from income taxes
previously paid to foreign jurisdictions. Further, repatriation of all earnings of foreign subsidiaries would be impracticable to the
extent that such earnings represent capital needed to support normal business operations in those jurisdictions. As a result, we
currently believe that any incremental U.S. income tax liabilities arising from the repatriation of distributable earnings of
foreign subsidiaries would not be material.
Income tax expense reflected in our Consolidated Statements of Earnings for each of the three years ending December 31,
2014 is as follows (in millions).
2014 2013 2012
Federal ............................................................... $6,447 $8,155 $5,695
State ................................................................. 560 258 384
Foreign ............................................................... 928 538 845
$7,935 $8,951 $6,924
Current ............................................................... $3,302 $5,168 $4,711
Deferred .............................................................. 4,633 3,783 2,213
$7,935 $8,951 $6,924
72