Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Information About Domestic And Foreign Pre-Tax Income

Information about domestic and foreign pre-tax income as well as current and deferred tax expense follows:



	Years Ended December 31,
	2014		2013		2012
Pre-tax income:
Domestic	$	632,738	$	716,172	$	686,571
Foreign	111,399		73,527		71,180
Total pre-tax income	$	744,137	$	789,699	$	757,751

Components Of Income Tax Expense (Benefit)



	Years Ended December 31,
	2014			2013		2012
Current expense:
Federal & state	$	162,483		$	129,204	$	169,394
Foreign	46,593			35,188		33,520
Total current expense	209,076			164,392		202,914
Deferred expense (benefit):
Federal & state	72,645			131,336		71,372
Foreign	(8,491		)	5,064		(240		)
Total deferred expense	64,154			136,400		71,132
Total income tax expense	$	273,230		$	300,792	$	274,046

Reconciliation Of Federal Income Tax Rate

A reconciliation of the federal income tax rate to the Company’s effective income tax rate follows:



	December 31,
	2014		2013		2012
Federal income tax rate:	35.0	%	35.0	%	35.0	%
Reconciling items:
Tax exempt interest	(1.2	)	(1.0	)	(1.3	)
Dividends received deduction	(0.7	)	(0.7	)	(0.6	)
Foreign earnings (a)	(2.2	)	1.1		0.5
Non deductible compensation	3.8		3.4		1.1
Non deductible health insurer fee	1.1		0		0
IRS audit settlement	(0.3	)	0		1.0
Other	1.2		0.3		0.5
Effective income tax rate:	36.7	%	38.1	%	36.2	%


(a)	Results for all years primarily include tax expense/(benefit) associated with the earnings of certain non-U.S. subsidiaries that are deemed reinvested indefinitely and realization of foreign tax credits for certain other subs.

Summary Of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012 is as follows:



	Years Ended December 31,
	2014			2013			2012
Balance at beginning of year	$	(10,322	)	$	(11,515	)	$	(17,524	)
Additions based on tax positions related to the current year	(2,940		)	(309		)	(499		)
Reductions based on tax positions related to the current year	581			995			3,124
Additions for tax positions of prior years	(1,037		)	(1,090		)	(20,830		)
Reductions for tax positions of prior years	2,495			959			8,365
Lapses	—			—			374
Settlements	4,961			638			15,475
Balance at end of year	$	(6,262	)	$	(10,322	)	$	(11,515	)

Summary Of Deferred Tax Assets And Deferred Tax Liabilities

The tax effects of temporary differences that result in significant deferred tax assets and deferred tax liabilities are as follows:



	December 31,
	2014			2013
Deferred Tax Assets
Policyholder and separate account reserves	$	498,231		$	611,774
Accrued liabilities	23,183			17,791
Investments, net	168,061			119,410
Net operating loss carryforwards	50,103			65,507
Deferred gain on disposal of businesses	35,347			34,833
Compensation related	24,029			21,713
Employee and post-retirement benefits	111,716			81,725
Unearned fee income	55,765			61,121
Other	40,584			44,585
Total deferred tax asset	1,007,019			1,058,459
Less valuation allowance	(18,164		)	(16,474		)
Deferred tax assets, net of valuation allowance	988,855			1,041,985
Deferred Tax Liabilities
Deferred acquisition costs	(867,212		)	(894,921		)
Net unrealized appreciation on securities	(435,375		)	(276,212		)
Total deferred tax liability	(1,302,587		)	(1,171,133		)
Net deferred income tax liability	$	(313,732	)	$	(129,148	)

Summary Of Net Operating Loss Carryforwards

At December 31, 2014, the Company and its subsidiaries had $202,099 of net operating loss carryforwards in certain foreign subsidiaries that will expire if unused as follows:



Expiration Year	Amount
2015 – 2019	$	29,438
2020 – 2024	6,074
2025 – 2029	5,791
2030 – 2034	26,217
Unlimited	134,579
	$	202,099

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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