Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

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

	For the year ended December 31,
	2018		2017		2016
	(in millions)
Current income taxes (benefits):
U.S. federal	$	(48.9)	$	(4.4)	$	38.6
State		10.3		48.9		(1.9)
Foreign		51.7		38.1		36.6
Tax benefit of operating loss carryforward		(13.5)		(21.5)		(17.5)
Total current income taxes (benefits)		(0.4)		61.1		55.8
Deferred income taxes (benefits):
U.S. federal		224.3		(208.2)		171.7
State		19.2		42.5		(20.6)
Foreign		(12.4)		32.3		23.0
Total deferred income taxes (benefits)		231.1		(133.4)		174.1
Income taxes (benefits)	$	230.7	$	(72.3)	$	229.9

Income Before Income Taxes, Domestic and Foreign (Table)

	For the year ended December 31,
	2018		2017		2016
	(in millions)
Domestic	$	1,658.1	$	1,848.5	$	1,261.4
Foreign		126.3		403.7		330.3
Total income before income taxes	$	1,784.4	$	2,252.2	$	1,591.7

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

	For the year ended December 31,
	2018		2017		2016
U.S. corporate income tax rate	21	%	35	%	35	%
Dividends received deduction	(4)		(8)		(10)
Impact of the Tax Cuts and Jobs Act	(3)		(25)		—
Tax credits	(3)		(2)		(2)
Impact of equity method presentation	(1)		(2)		(3)
Interest exclusion from taxable income	(1)		(1)		(1)
State income taxes	1		2		—
Local country permanent tax adjustments	1		—		—
Other	2		(2)		(5)
Effective income tax rate	13	%	(3)	%	14	%

Changes in Unrecognized Tax Benefits (Table)

	For the year ended December 31,
	2018		2017
	(in millions)
Balance at beginning of period	$	194.1	$	207.8
Additions based on tax positions related to the current year		0.8		7.2
Additions for tax positions of prior years		43.7		20.2
Reductions for tax positions related to the current year		(10.6)		(3.3)
Reductions for tax positions of prior years		(23.2)		(1.1)
Settlements		(162.7)		(36.7)
Balance at end of period (1)	$	42.1	$	194.1

(1) If recognized, $4.9 million of the above amount of unrecognized tax benefits would reduce our 2018 effective income tax rate. We recognize interest and penalties related to uncertain tax positions in operating expenses within the consolidated statements of operations.

Components of Net Deferred Income Taxes (Table)

	December 31,
	2018		2017
	(in millions)
Deferred income tax assets:
Insurance liabilities	$	—	$	26.3
Investments, including derivatives		165.6		205.8
Net operating and capital loss carryforwards		80.8		68.3
Tax credit carryforwards		163.3		307.5
Employee benefits		327.3		314.5
Foreign currency translation		28.1		20.4
Other deferred income tax assets		33.8		42.7
Gross deferred income tax assets		798.9		985.5
Valuation allowance		(17.0)		(5.2)
Total deferred income tax assets		781.9		980.3
Deferred income tax liabilities:
Deferred acquisition costs		(615.8)		(587.0)
Investments, including derivatives		(298.1)		(343.9)
Net unrealized gains on available-for-sale securities		(98.1)		(597.9)
Real estate		(144.9)		(147.1)
Intangible assets		(310.0)		(253.9)
Insurance liabilities		(60.2)		—
Repatriation toll charge		—		(19.8)
Other deferred income tax liabilities		(71.9)		(74.8)
Total deferred income tax liabilities		(1,599.0)		(2,024.4)
Total net deferred income tax liabilities	$	(817.1)	$	(1,044.1)

Net Deferred Income Taxes by Jurisdiction (Table)

	December 31,
	2018		2017
	(in millions)
Deferred income tax assets:
State	$	108.2	$	10.9
Foreign		33.1		37.5
Net deferred income tax assets		141.3		48.4
Deferred income tax liabilities:
U.S. federal		(708.2)		(803.9)
Foreign		(250.2)		(288.6)
Net deferred income tax liabilities		(958.4)		(1,092.5)
Total net deferred income tax liabilities	$	(817.1)	$	(1,044.1)