XML 61 R22.htm IDEA: XBRL DOCUMENT

Income Taxes	3 Months Ended
Mar. 31, 2014
Income Taxes [Abstract]
Income Taxes	Note 14 ― Income Taxes A. Income Tax Expense The Company indefinitely reinvests the undistributed earnings of certain foreign operations. As a result, income taxes are provided on the earnings of these operations using the respective foreign jurisdictions' tax rate, as compared to the higher U.S. statutory tax rate. The indefinite reinvestment of foreign operation earnings resulted in an increase to shareholders' net income of $10 million for the three months ended March 31, 2014 and $12 million for the three months ended March 31, 2013. The Company has accumulated indefinitely reinvested foreign earnings of $1.2 billion and cumulative unrecognized deferred tax liabilities of $168 million through March 31, 2014. The Company continues to evaluate the indefinite reinvestment of earnings for additional foreign jurisdictions. The consolidated effective tax rate of 38.0% for the three months ended March 31, 2014 has increased from historical levels because the health insurance industry fee accrued in the first quarter of 2014 is not tax deductible. B. Unrecognized Tax Benefits Unrecognized tax benefits were unchanged for the three months ended March 31, 2014. C. Other Tax Matters The IRS previously completed their examination of the Company's 2009 and 2010 tax years resulting in two issues that could not be resolved at the examination level. On October 23, 2013, the Company filed a formal protest challenging the IRS positions on the two disputed matters. The IRS had previously agreed to withdraw its challenge relating to one of these matters and the parties recently agreed on a resolution of the second matter. The resolution of these matters will not impact shareholders' net income.

Income Taxes

3 Months Ended

Mar. 31, 2014

Note 14 ― Income Taxes

A. Income Tax Expense

The Company indefinitely reinvests the undistributed earnings of certain foreign operations. As a result, income taxes are provided on the earnings of these operations using the respective foreign jurisdictions' tax rate, as compared to the higher U.S. statutory tax rate. The indefinite reinvestment of foreign operation earnings resulted in an increase to shareholders' net income of $10 million for the three months ended March 31, 2014 and $12 million for the three months ended March 31, 2013. The Company has accumulated indefinitely reinvested foreign earnings of $1.2 billion and cumulative unrecognized deferred tax liabilities of $168 million through March 31, 2014. The Company continues to evaluate the indefinite reinvestment of earnings for additional foreign jurisdictions.

The consolidated effective tax rate of 38.0% for the three months ended March 31, 2014 has increased from historical levels because the health insurance industry fee accrued in the first quarter of 2014 is not tax deductible.

B. Unrecognized Tax Benefits

Unrecognized tax benefits were unchanged for the three months ended March 31, 2014.

C. Other Tax Matters

The IRS previously completed their examination of the Company's 2009 and 2010 tax years resulting in two issues that could not be resolved at the examination level. On October 23, 2013, the Company filed a formal protest challenging the IRS positions on the two disputed matters. The IRS had previously agreed to withdraw its challenge relating to one of these matters and the parties recently agreed on a resolution of the second matter. The resolution of these matters will not impact shareholders' net income.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details