Income taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of income tax liability

The liabilities for income taxes reflected in our Consolidated Balance Sheets are as follows (in millions).

	December 31,
	2012			2011
Currently payable (receivable)	$	(255	)	$	(229	)
Deferred		43,883			37,105
Other		866			928
	$	44,494		$	37,804

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,
	2012			2011
Deferred tax liabilities:
Investments – unrealized appreciation and cost basis differences	$	16,075		$	11,404
Deferred charges reinsurance assumed		1,392			1,449
Property, plant and equipment		29,715			28,414
Other		6,485			6,378
		53,667			47,645
Deferred tax assets:
Unpaid losses and loss adjustment expenses		(924	)		(967	)
Unearned premiums		(660	)		(572	)
Accrued liabilities		(3,466	)		(3,698	)
Derivative contract liabilities		(1,131	)		(1,676	)
Other		(3,603	)		(3,627	)
		(9,784	)		(10,540	)
Net deferred tax liability	$	43,883		$	37,105

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, 2012 is as follows (in millions).

	2012		2011		2010
Federal	$	5,695	$	3,474	$	4,546
State		384		444		337
Foreign		845		650		724
	$	6,924	$	4,568	$	5,607
Current	$	4,711	$	2,897	$	3,668
Deferred		2,213		1,671		1,939
	$	6,924	$	4,568	$	5,607

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, 2012 in the table below (in millions).

	2012			2011			2010
Earnings before income taxes	$	22,236		$	15,314		$	19,051
Hypothetical amounts applicable to above computed at the federal statutory rate	$	7,783		$	5,360		$	6,668
Dividends received deduction and tax exempt interest		(518	)		(497	)		(504	)
State income taxes, less federal income tax benefit		250			289			219
Foreign tax rate differences		(280	)		(208	)		(154	)
U.S. income tax credits		(319	)		(241	)		(182	)
BNSF holding gain		—			—			(342	)
Other differences, net		8			(135	)		(98	)
	$	6,924		$	4,568		$	5,607