Aetna 2014 Annual Report Download - page 128

Annual Report- Page 122
The significant components of our net deferred tax liabilities at December 31, 2014 and 2013 were as follows:
(Millions) 2014 2013
Deferred tax assets:
Employee and postretirement benefits $ 290.9 $ 130.9
Insurance reserves 252.9 237.4
Reserve for anticipated future losses on discontinued products 199.1 225.2
Net operating losses 195.3 176.2
Investments, net 68.3 76.0
Debt fair value adjustments 43.4 62.0
Severance and facilities 9.9 30.1
Deferred policy acquisition costs 9.2 21.9
Litigation-related settlement 6.0 43.5
Other 94.9 106.3
Gross deferred tax assets 1,169.9 1,109.5
Less: Valuation allowance 147.9 139.3
Deferred tax assets, net of valuation allowance 1,022.0 970.2
Deferred tax liabilities:
Goodwill and other acquired intangible assets 868.4 861.9
Unrealized gains on investment securities 291.5 192.8
Cumulative depreciation and amortization 286.6 258.2
Total gross deferred tax liabilities 1,446.5 1,312.9
Net deferred tax liabilities (1) $ (424.5) $ (342.7)
(1) Includes $443.0 million and $521.5 million classified as current assets at December 31, 2014 and 2013, respectively. Includes $867.5
million and $864.2 million classified as long-term liabilities at December 31, 2014 and 2013, respectively.
Valuation allowances are provided when we estimate that it is more likely than not that deferred tax assets will not
be realized. A valuation allowance has been established on certain federal and state net operating losses. We base
our estimates of the future realization of deferred tax assets primarily on historic taxable income and existing
deferred tax liabilities.
We participate in the Compliance Assurance Process (the “CAP”) with the Internal Revenue Service (the “IRS”).
Under the CAP, the IRS undertakes audit procedures during the tax year and as the return is prepared for filing.
The IRS has concluded its CAP audit of our 2013 tax return as well as all the prior years. We expect the IRS will
conclude its CAP audit of our 2014 tax return in 2015.
We are also subject to audits by state taxing authorities for tax years from 2000 through 2013. We believe we carry
appropriate reserves for any exposure to state tax issues.
At both December 31, 2014 and December 31, 2013 we did not have material uncertain tax positions reflected in
our consolidated balance sheets.
We paid net income taxes of approximately $1.6 billion, $891 million and $741 million in 2014, 2013 and 2012,
respectively.