Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes

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

	For the year ended December 31,
	2020		2019		2018
	(in millions)
Current income taxes (benefits):
U.S. federal	$	15.8	$	31.9	$	(48.9)
State		5.0		18.1		10.3
Foreign		55.4		45.6		51.7
Tax benefit of operating loss carryforward		(3.3)		(3.0)		(13.5)
Total current income taxes (benefits)		72.9		92.6		(0.4)
Deferred income taxes (benefits):
U.S. federal		143.6		108.6		224.3
State		11.5		6.9		19.2
Foreign		37.0		41.1		(12.4)
Total deferred income taxes		192.1		156.6		231.1
Income taxes	$	265.0	$	249.2	$	230.7

Income Before Income Taxes, Domestic and Foreign (Table)

	For the year ended December 31,
	2020		2019		2018
	(in millions)
Domestic	$	1,323.2	$	1,351.9	$	1,661.1
Foreign		370.3		341.4		123.3
Total income before income taxes	$	1,693.5	$	1,693.3	$	1,784.4

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

	For the year ended December 31,
	2020		2019		2018
U.S. corporate income tax rate	21	%	21	%	21	%
Dividends received deduction	(4)		(5)		(4)
Tax credits	(3)		(3)		(3)
Impact of equity method presentation	(1)		(2)		(1)
Interest exclusion from taxable income	(1)		—		(1)
Impact of the Tax Cuts and Jobs Act	—		—		(3)
State income taxes	1		1		1
Local country permanent tax adjustments	—		1		1
Other	3		2		2
Effective income tax rate	16	%	15	%	13	%

Changes in Unrecognized Tax Benefits (Table)

	For the year ended December 31,
	2020		2019		2018
	(in millions)
Balance at beginning of period	$	61.6	$	42.1	$	194.1
Additions based on tax positions related to the current year		1.3		0.1		0.8
Additions for tax positions of prior years		17.4		23.1		43.7
Reductions for tax positions related to the current year		(3.2)		(3.2)		(10.6)
Reductions for tax positions of prior years		—		(0.5)		(23.2)
Settlements		(14.5)		—		(162.7)
Expired statute of limitations		(15.7)		—		—
Balance at end of period (1)	$	46.9	$	61.6	$	42.1

(1) If recognized, $1.1 million of the above amount of unrecognized tax benefits would reduce our 2020 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,
	2020		2019
	(in millions)
Deferred income tax assets:
Investments, including derivatives	$	588.4	$	237.0
Insurance liabilities		552.4		143.2
Net operating and capital loss carryforwards		69.2		71.1
Tax credit carryforwards		4.6		106.0
Employee benefits		389.1		338.9
Foreign currency translation		9.7		14.0
Other deferred income tax assets		52.5		45.2
Gross deferred income tax assets		1,665.9		955.4
Valuation allowance		(18.4)		(16.7)
Total deferred income tax assets		1,647.5		938.7
Deferred income tax liabilities:
Deferred acquisition costs		(522.6)		(562.9)
Investments, including derivatives		(990.4)		(443.7)
Net unrealized gains on available-for-sale securities		(1,762.1)		(1,039.9)
Real estate		(158.5)		(147.9)
Intangible assets		(387.5)		(342.3)
Other deferred income tax liabilities		(43.4)		(75.0)
Total deferred income tax liabilities		(3,864.5)		(2,611.7)
Total net deferred income tax liabilities	$	(2,217.0)	$	(1,673.0)

Net Deferred Income Taxes by Jurisdiction (Table)

	December 31,
	2020		2019
	(in millions)
Deferred income tax assets:
State	$	81.1	$	94.9
Foreign		32.7		28.7
Net deferred income tax assets		113.8		123.6
Deferred income tax liabilities:
U.S. federal		(2,011.8)		(1,507.6)
Foreign		(319.0)		(289.0)
Net deferred income tax liabilities		(2,330.8)		(1,796.6)
Total net deferred income tax liabilities	$	(2,217.0)	$	(1,673.0)