Income Tax (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes

Income Tax Expense (Benefit) from Continuing Operations (Table)

	For the year ended December 31,
	2011		2010		2009
	(in millions)
Current income taxes:
U.S. federal	$	115.4	$	74.1	$	97.7
State and foreign		51.4		34.2		19.4
Total current income taxes		166.8		108.3		117.1
Deferred income taxes		69.6		15.8		(17.0	)
Total income taxes	$	236.4	$	124.1	$	100.1

Reconciliation Between U.S. Corporate Income Tax Rate and Effective Income Tax Rate from Continuing Operations (Table)

	For the year ended December 31,
	2011			2010			2009
U.S. corporate income tax rate		35	%		35	%		35	%
Dividends received deduction		(8	)		(10	)		(10	)
Impact of equity method presentation		(4	)		(6	)		(5	)
Interest exclusion from taxable income		(3	)		(3	)		(3	)
Impact of court ruling on some uncertain tax positions		6			—			—
Other		(2	)		(1	)		(4	)
Effective income tax rate		24	%		15	%		13	%

Changes in Unrecognized Tax Benefits (Table)

	For the year ended December 31,
	2011			2010
	(in millions)
Balance at beginning of year	$	54.8		$	54.5
Additions based on tax positions related to the current year		1.5			1.5
Additions for tax positions of prior years		67.1			1.2
Reductions for tax positions related to the current year		(1.8	)		(2.4	)
Reductions for tax positions of prior years		(7.3	)		—
Balance at end of year (1)	$	114.3		$	54.8

(1)

Of this amount, $75.8 million, if recognized, would reduce the 2011 effective income tax rate. We recognize interest and penalties related to uncertain tax positions in operating expenses.

Components of Net Deferred Income Taxes (Table)

	December 31,
	2011			2010
	(in millions)
Deferred income tax assets:
Insurance liabilities	$	80.7		$	245.2
Investments, including derivatives		659.2			622.0
Net operating and capital loss carryforwards		358.6			326.4
Postretirement benefits		503.3			327.8
Stock-based compensation		72.6			71.0
Other deferred income tax assets		64.4			15.2
Gross deferred income tax assets		1,738.8			1,607.6
Valuation allowance		(1.3	)		(1.0	)
Total deferred income tax assets		1,737.5			1,606.6
Deferred income tax liabilities:
Deferred policy acquisition costs		(1,051.7	)		(1,084.6	)
Investments, including derivatives		(488.9	)		(425.7	)
Net unrealized gains on available-for-sale securities		(423.3	)		(188.6	)
Real estate		(103.3	)		(115.6	)
Intangible assets		(144.6	)		(108.1	)
Other deferred income tax liabilities		(43.6	)		(80.9	)
Total deferred income tax liabilities		(2,255.4	)		(2,003.5	)
Total net deferred income tax liabilities	$	(517.9	)	$	(396.9	)

Net Deferred Income Taxes by Jurisdiction (Table)

	December 31,
	2011			2010
	(in millions)
Deferred income tax assets:
State	$	2.9		$	1.8
International		12.6			11.2
Net deferred income tax assets		15.5			13.0
Deferred income tax liabilities:
U.S.		(381.2	)		(264.1	)
International		(152.2	)		(145.8	)
Net deferred income tax liabilities		(533.4	)		(409.9	)
Total net deferred income tax liabilities	$	(517.9	)	$	(396.9	)