Income Taxes

Income tax expense consists of:



(In thousands)	Current Expense			Deferred Expense		Total
December 31, 2015
Domestic	$	179,150		$	31,145	$	210,295
Foreign	(2,318		)	19,946		17,628
Total expense	$	176,832		$	51,091	$	227,923

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

Income before income taxes from domestic operations was $689 million, $910 million and $598 million for the years ended December 31, 2015, 2014 and 2013, respectively. Income before income taxes from foreign operations was $43 million, $42 million and $101 million for the years ended December 31, 2015, 2014 and 2013, 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)	2015			2014			2013
Computed “expected” tax expense	$	256,210		$	333,269		$	244,611
Tax-exempt investment income	(39,283		)	(38,757		)	(40,679		)
Change in valuation allowance	2,702			1,335			—
Impact of foreign tax rates	4,447			6,239			(4,851		)
State and local taxes	940			2,375			2,906
Other, net	2,907			(1,868		)	(8,400		)
Total expense	$	227,923		$	302,593		$	193,587

At December 31, 2015 and 2014, 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)	2015			2014
Deferred tax asset:
Loss reserve discounting	$	100,806		$	77,216
Unearned premiums	176,465			165,075
Other-than-temporary impairments	26,509			45,367
Restricted stock units	62,442			60,061
Other	89,761			101,131
Gross deferred tax asset	455,983			448,850
Less valuation allowance	(4,037		)	(1,335		)
Deferred tax asset	451,946			447,515
Deferred tax liability:
Amortization of intangibles	20,316			22,747
Deferred policy acquisition costs	162,344			152,001
Unrealized investment gains	115,499			175,111
Other	160,598			135,108
Deferred tax liability	458,757			484,967
Net deferred tax asset (liability)	$	(6,811	)	$	(37,452	)

The Company had current tax receivables of $55,763,000 and $67,623,000 at December 31, 2015 and 2014, respectively. At December 31, 2015, the Company had foreign net operating loss carryforwards $6.1 million that expire beginning in 2031, and an additional $43.2 million that have no expiration date. At December 31, 2015, the Company had a valuation allowance of $4.0 million, as compared to $1.3 million at December 31, 2014. The Company has provided a valuation allowance against future tax benefits of certain foreign operations. The statute of limitations has closed for the Company’s tax returns through December 31, 2011.

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.