Income taxes (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of income tax liability

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

Schedule of deferred tax assets and liabilities

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

Schedule of tax provision by jurisdiction category and classification

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

Schedule of income tax reconciled to federal statutory amount

Income tax expense is reconciled to hypothetical amounts computed at the U.S. federal statutory rate for each of the three years ending December 31, 2011 in the table below (in millions).

	2011			2010			2009
Earnings before income taxes	$	15,314		$	19,051		$	11,552
Hypothetical amounts applicable to above computed at the federal statutory rate	$	5,360		$	6,668		$	4,043
Dividends received deduction and tax exempt interest		(497	)		(504	)		(512	)
State income taxes, less federal income tax benefit		289			219			81
Foreign tax rate differences		(208	)		(154	)		(92	)
U.S. income tax credits		(241	)		(182	)		(134	)
BNSF holding gain		—			(342	)		—
Other differences, net		(135	)		(98	)		152
	$	4,568		$	5,607		$	3,538