Berkshire Hathaway 2011 Annual Report Download - page 51

Notes to Consolidated Financial Statements (Continued)
(15) Income taxes
The liabilities for income taxes reflected in our Consolidated Balance Sheets are as follows (in millions).
December 31,
2011 2010
Payable currently .............................................................. $ (229) $ (211)
Deferred ..................................................................... 37,105 35,558
Other ....................................................................... 928 1,005
$37,804 $36,352
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,
2011 2010
Deferred tax liabilities:
Investments – unrealized appreciation and cost basis differences .................... $11,404 $13,376
Deferred charges reinsurance assumed ........................................ 1,449 1,334
Property, plant and equipment ............................................... 28,414 24,746
Other .................................................................. 6,378 5,108
47,645 44,564
Deferred tax assets:
Unpaid losses and loss adjustment expenses .................................... (967) (1,052)
Unearned premiums ....................................................... (572) (508)
Accrued liabilities ........................................................ (3,698) (3,652)
Derivative contract liabilities ................................................ (1,676) (862)
Other .................................................................. (3,627) (2,932)
(10,540) (9,006)
Net deferred tax liability ....................................................... $37,105 $35,558
We have not established deferred income taxes with respect to undistributed earnings of certain foreign subsidiaries.
Earnings expected to remain reinvested indefinitely were approximately $6.6 billion as of December 31, 2011. 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 with respect to 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,
2011 is as follows (in millions).
2011 2010 2009
Federal ............................................................... $3,474 $4,546 $2,833
State ................................................................. 444 337 124
Foreign ............................................................... 650 724 581
$4,568 $5,607 $3,538
Current ............................................................... $2,897 $3,668 $1,619
Deferred .............................................................. 1,671 1,939 1,919
$4,568 $5,607 $3,538
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