Income Taxes

Income tax expense consists of:



(In thousands)	Current Expense		Deferred Expense		Total
December 31, 2014
Domestic	$	258,337	$	28,029	$	286,366
Foreign	12,969		3,258		16,227
Total expense	$	271,306	$	31,287	$	302,593

December 31, 2013
Domestic	$	116,802	$	47,370	$	164,172
Foreign	22,362		7,053		29,415
Total expense	$	139,164	$	54,423	$	193,587

December 31, 2012
Domestic	$	156,339	$	11,448	$	167,787
Foreign	23,029		469		23,498
Total expense	$	179,368	$	11,917	$	191,285

Income before income taxes from domestic operations was $910 million, $598 million and $624 million for the years ended December 31, 2014, 2013 and 2012, respectively. Income before income taxes from foreign operations was $42 million, $101 million and $78 million for the years ended December 31, 2014, 2013 and 2012, respectively.

A reconciliation of the income tax expense and the amounts computed by applying the Federal and foreign income tax rate of 35% to pre-tax income are as follows:



(In thousands)	2014			2013			2012
Computed “expected” tax expense	$	333,269		$	244,611		$	245,675
Tax-exempt investment income	(38,757		)	(40,679		)	(50,665		)
Change in valuation allowance	1,335			—			—
Impact of foreign tax rates	6,239			(4,851		)	(5,234		)
State and local taxes	2,375			2,906			(753		)
Other, net	(1,868		)	(8,400		)	2,262
Total expense	$	302,593		$	193,587		$	191,285

At December 31, 2014 and 2013, the tax effects of differences that give rise to significant portions of the deferred tax asset and deferred tax liability are as follows:



(In thousands)	2014			2013
Deferred tax asset:
Loss reserve discounting	$	77,216		$	87,394
Unearned premiums	165,075			149,107
Other-than-temporary impairments	45,367			49,483
Restricted stock units	60,061			52,671
Other	101,131			92,698
Gross deferred tax asset	448,850			431,353
Less valuation allowance	(1,335		)	—
Deferred tax asset	447,515			431,353
Deferred tax liability:
Amortization of intangibles	22,747			11,886
Deferred policy acquisition costs	152,001			136,635
Unrealized investment gains	175,111			148,215
Other	135,108			114,497
Deferred tax liability	484,967			411,233
Net deferred tax asset (liability)	$	(37,452	)	$	20,120

The Company had current tax receivables of $67,623,000 and $24,737,000 at December 31, 2014 and 2013, respectively. At December 31, 2014, the Company had foreign net operating loss carryforwards of $559 thousand that expire beginning in 2015, $6 million that expire beginning in 2031, and an additional $12 million that have no expiration date. At December 31, 2014, the Company had a valuation allowance of $1,335,000, as compared to none at December 31, 2013. The Company has provided a valuation allowance against losses for certain foreign non-insurance related business. The statute of limitations has closed for the Company’s tax returns through December 31, 2010.

The realization of the deferred tax asset is dependent upon the Company’s ability to generate sufficient taxable income in future periods. Based on historical results and the prospects for future current operations, management anticipates that it is more likely than not that future taxable income will be sufficient for the realization of this asset.