Berkshire Hathaway 2015 Annual Report Download - page 62

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Notes to Consolidated Financial Statements (Continued)
(16) Income taxes
The liabilities for income taxes reflected in our Consolidated Balance Sheets are as follows (in millions).
December 31,
2015 2014
Currently payable (receivable) ................................................... $ (643) $ (1,346)
Deferred ..................................................................... 63,199 61,936
Other ....................................................................... 570 645
$63,126 $61,235
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,
2015 2014
Deferred tax liabilities:
Investments – unrealized appreciation and cost basis differences .................... $25,117 $26,633
Deferred charges reinsurance assumed ......................................... 2,798 2,721
Property, plant and equipment ............................................... 36,770 34,618
Other ................................................................... 7,325 6,396
72,010 70,368
Deferred tax assets:
Unpaid losses and loss adjustment expenses .................................... (887) (933)
Unearned premiums ....................................................... (927) (773)
Accrued liabilities ......................................................... (3,487) (3,575)
Other ................................................................... (3,510) (3,151)
(8,811) (8,432)
Net deferred tax liability ........................................................ $63,199 $61,936
We have not established deferred income taxes on accumulated undistributed earnings of certain foreign subsidiaries. Such
earnings were approximately $10.4 billion as of December 31, 2015 and are expected to remain reinvested indefinitely. Upon
distribution as dividends or otherwise, such amounts would be subject to taxation in the U.S. and potentially in other 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,
2015 is as follows (in millions).
2015 2014 2013
Federal .............................................................. $ 9,253 $6,447 $8,155
State ................................................................ 578 560 258
Foreign .............................................................. 701 928 538
$10,532 $7,935 $8,951
Current .............................................................. $ 5,426 $3,302 $5,168
Deferred ............................................................. 5,106 4,633 3,783
$10,532 $7,935 $8,951
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