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Income taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income taxes | (20) Income taxes Our liabilities for income taxes are as follows (in millions).
|  | December 31, |
|  | 2024 |  |  | 2023 |
Currently payable |  | $ | 1,806 |  |  | $ | 185 |
Deferred |  |  | 83,563 |  |  |  | 92,344 |
Other |  |  | 501 |  |  |  | 480 |
|  | $ | 85,870 |  |  | $ | 93,009 |
Our deferred income tax assets and liabilities summarized by type of temporary difference are as follows (in millions).
|  | December 31, |
|  | 2024 |  |  | 2023 |
Deferred income tax liabilities: |  |  |  |  |  |
Investments, including unrealized appreciation |  | $ | 47,158 |  |  | $ | 56,766 |
Deferred charges retroactive reinsurance |  |  | 1,847 |  |  |  | 1,994 |
Property, plant and equipment and equipment held for lease |  |  | 33,590 |  |  |  | 32,991 |
Goodwill and other intangible assets |  |  | 7,498 |  |  |  | 7,546 |
Other |  |  | 5,043 |  |  |  | 4,452 |
|  |  | 95,136 |  |  |  | 103,749 |
Deferred income tax assets: |  |  |  |  |  |
Unpaid losses and loss adjustment expenses |  | $ | 1,226 |  |  | $ | 1,255 |
Unearned premiums |  |  | 1,284 |  |  |  | 1,285 |
Accrued liabilities |  |  | 2,713 |  |  |  | 2,626 |
Regulatory liabilities |  |  | 1,364 |  |  |  | 1,248 |
Deferred revenue |  |  | 2,539 |  |  |  | 2,282 |
Other |  |  | 2,447 |  |  |  | 2,709 |
|  |  | 11,573 |  |  |  | 11,405 |
Net deferred income tax liability |  | $ | 83,563 |  |  | $ | 92,344 |
We have not established deferred income taxes on accumulated undistributed earnings of certain foreign subsidiaries, which are expected to be reinvested indefinitely. Repatriation of all accumulated earnings of foreign subsidiaries would be impracticable to the extent that such earnings represent capital to support ongoing business operations. Generally, no U.S. federal income taxes will be imposed on future distributions of foreign earnings under current law. However, distributions to the U.S. or other foreign jurisdictions could be subject to withholding and other local taxes. Income tax expense (benefit) for each of the three years ending December 31, 2024 is summarized as follows (in millions).
|  | 2024 |  |  | 2023 |  |  | 2022 |
U.S. federal |  | $ | 18,481 |  |  | $ | 20,764 |  |  | $ | (10,316 | )
U.S. state |  |  | 767 |  |  |  | 763 |  |  |  | 762 |
Foreign |  |  | 1,567 |  |  |  | 1,492 |  |  |  | 1,052 |
|  | $ | 20,815 |  |  | $ | 23,019 |  |  | $ | (8,502 | )
Current |  | $ | 30,464 |  |  | $ | 7,642 |  |  | $ | 4,815 |
Deferred |  |  | (9,649 | ) |  |  | 15,377 |  |  |  | (13,317 | )
|  | $ | 20,815 |  |  | $ | 23,019 |  |  | $ | (8,502 | )
Notes to Consolidated Financial Statements (20) Income taxes Income tax expense (benefit) is reconciled to hypothetical amounts computed at the U.S. federal statutory rate for each of the three years ending December 31, 2024 in the table below (dollars in millions).
|  | 2024 |  |  | 2023 |  |  | 2022 |
Earnings (loss) before income taxes |  | $ | 110,376 |  |  | $ | 120,166 |  |  | $ | (30,500 | )
Hypothetical income tax expense (benefit) at the U.S. federal statutory rate |  | $ | 23,179 |  |  | $ | 25,235 |  |  | $ | (6,405 | )
Dividends received deduction |  |  | (491 | ) |  |  | (678 | ) |  |  | (512 | )
State income taxes, less U.S. federal income tax effect |  |  | 606 |  |  |  | 603 |  |  |  | 602 |
U.S. income tax credits* |  |  | (2,575 | ) |  |  | (2,186 | ) |  |  | (2,187 | )
Other differences, net |  |  | 96 |  |  |  | 45 |  |  |  | — |
|  | $ | 20,815 |  |  | $ | 23,019 |  |  | $ | (8,502 | )
Effective income tax rate |  |  | 18.9 | % |  |  | 19.2 | % |  |  | 27.9 | %
* U.S. income tax credits derive primarily from production tax credits associated with wind-energy generation of BHE and tax credits arising from affordable housing investments. We file income tax returns in the U.S. and in state, local and foreign jurisdictions. We have settled income tax liabilities with the U.S. federal taxing authority (“IRS”) for tax years through 2013, and the IRS is currently auditing tax years 2014 through 2019. We are also under audit or subject to audit with respect to income taxes in various state and foreign jurisdictions. It is reasonably possible that certain of these income tax examinations will be settled in 2025. We currently do not believe that the outcome of unresolved issues or claims will be material to our Consolidated Financial Statements. At December 31, 2024 and 2023, net unrecognized tax benefits were $501 million and $480 million, respectively. Included in the balance at December 31, 2024, were $448 million of tax positions that, if recognized, would impact the effective tax rate. We do not expect material increases to the estimated amount of unrecognized tax benefits during 2025. The Organization for Economic Co-operation and Development has issued Pillar Two model rules introducing a new global minimum tax of 15% intended to be effective on January 1, 2024. While the U.S. has not yet adopted Pillar Two rules, various other governments around the world are enacting legislation to adopt the rules. As currently designed, Pillar Two would apply to our worldwide operations. We do not currently have material operations in jurisdictions with tax rates lower than the Pillar Two minimum tax rate, and we do not currently expect these rules will materially increase our global tax costs. There remains uncertainty as to the final Pillar Two model rules.

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