Income taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of income tax liability

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

	December 31,
	2020			2019
Currently payable (receivable)	$	(276	)	$	24
Deferred		73,261			65,823
Other		1,113			952
	$	74,098		$	66,799

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,
	2020			2019
Deferred tax liabilities:
Investments – unrealized appreciation and cost basis differences	$	40,181		$	32,134
Deferred charges reinsurance assumed		2,613			2,890
Property, plant and equipment and equipment held for lease		30,203			29,388
Goodwill and other intangible assets		6,753			7,293
Other		3,736			3,144
		83,486			74,849
Deferred tax assets:
Unpaid losses and loss adjustment expenses		(1,135	)		(1,086	)
Unearned premiums		(900	)		(853	)
Accrued liabilities		(2,193	)		(1,981	)
Regulatory liabilities		(1,421	)		(1,610	)
Other		(4,576	)		(3,496	)
		(10,225	)		(9,026	)
Net deferred tax liability	$	73,261		$	65,823

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, 2020 is as follows (in millions).

	2020		2019		2018
Federal	$	10,596	$	19,069	$	(1,613	)
State		1,086		625		175
Foreign		758		1,210		1,117
	$	12,440	$	20,904	$	(321	)
Current	$	5,052	$	5,818	$	5,176
Deferred		7,388		15,086		(5,497	)
	$	12,440	$	20,904	$	(321	)

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, 2020 in the table below (in millions).

	2020			2019			2018
Earnings before income taxes	$	55,693		$	102,696		$	4,001
Hypothetical income tax expense computed at the U.S. federal statutory rate	$	11,696		$	21,566		$	840
Dividends received deduction and tax-exempt interest		(448	)		(433	)		(393	)
State income taxes, less U.S. federal income tax benefit		858			494			138
Foreign tax rate differences		13			(6	)		271
U.S. income tax credits		(1,519	)		(942	)		(711	)
Net benefit from the enactment of the TCJA		—			—			(302	)
Goodwill impairments		1,977			20			21
Other differences, net		(137	)		205			(185	)
	$	12,440		$	20,904		$	(321	)
Effective income tax rate		22.3	%		20.4	%		(8.0	)%