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PART II
ITEM 8. Financial Statements and Supplementary Data
B. Deferred Income Taxes
Deferred income tax assets and liabilities as of December 31 were as follows:
(In millions)
2015 2014
Deferred tax assets
Employee and retiree benefit plans $ 535 $ 597
Other insurance and contractholder liabilities 465 440
Net operating losses 101 72
Other accrued liabilities 177 203
Other 99 105
Deferred tax assets before valuation allowance 1,377 1,417
Valuation allowance for deferred tax assets (71) (49)
Deferred tax assets, net of valuation allowance 1,306 1,368
Deferred tax liabilities
Depreciation and amortization 765 755
Unrealized appreciation on investments and foreign currency translation 152 298
Other 10 22
Total deferred tax liabilities 927 1,075
Net deferred income tax assets $ 379 $ 293
Included in the consolidated net deferred tax asset of $379 million is establishes a valuation allowance when it determines that realization of
approximately $150 million of deferred tax liabilities attributable to a deferred tax asset does not meet the more likely than not standard.
foreign jurisdictions, most notably Korea and Taiwan. Valuation allowances have been established against certain federal,
foreign and state deferred tax assets, generally when there is a
Management believes that future results will be sufficient to realize the requirement to assess them on a separate entity basis. The increased
Company’s deferred tax assets. With the exception of certain net valuation allowance for 2015 is primarily attributable to tax benefits
operating loss related tax benefits, the Company’s deferred tax benefits of certain overseas start-up operations.
may be carried forward indefinitely. Net operating loss benefits are
primarily attributable to foreign jurisdictions. The Company
C. Uncertain Tax Positions
A reconciliation of unrecognized tax benefits for the years ended December 31 was as follows:
(In millions)
2015 2014 2013
Balance at January 1, $26 $17 $51
Decrease due to prior year positions – – (35)
Increase due to current year positions 712 6
Reduction related to lapse of applicable statute of limitations (2) (3) (5)
Balance at December 31, $31 $26 $17
102 CIGNA CORPORATION - 2015 Form 10-K