Health Net 2014 Annual Report Download - page 160

HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
F-50
Significant components of our deferred tax assets and liabilities as of December 31 are as follows:
2014 2013
(Dollars in millions)
DEFERRED TAX ASSETS:
Accrued liabilities........................................................................................................ $ 72.8 $ 87.8
Accrued compensation and benefits............................................................................ 68.8 67.1
Net operating and capital loss carryforwards.............................................................. 21.6 22.2
Unrealized losses on investments................................................................................ 0.5 16.7
Insurance loss reserves and unearned premiums......................................................... 13.7 12.7
Deferred gain and revenues......................................................................................... 1.3 6.6
Tax credits ................................................................................................................... 10.8 8.8
Deferred tax assets before valuation allowance .......................................................... 189.5 221.9
Valuation allowance..................................................................................................... (13.3)(23.3)
Net deferred tax assets................................................................................................. $ 176.2 $ 198.6
DEFERRED TAX LIABILITIES:
Depreciable and amortizable property......................................................................... $ 53.0 $ 77.1
Prepaid expenses ......................................................................................................... 10.7 14.9
Deferred revenue ......................................................................................................... 9.6 13.2
Unrealized gains on investments................................................................................. 5.6 —
Other............................................................................................................................ 6.3 4.0
Deferred tax liabilities................................................................................................. $ 85.2 $ 109.2
During 2014, our total valuation allowance decreased by a net $10 million, primarily resulting from the
expiration of a $6 million state capital loss carryforward upon which the valuation allowance was based.
For 2014, 2013 and 2012 the income tax benefit realized from share-based award exercises was $8.7 million,
$6.1 million and $16.6 million, respectively. Of the tax benefits realized, $1.1 million, $(1.4) million and $5.1 million
were allocated to stockholders’ equity in 2014, 2013 and 2012, respectively.
As of December 31, 2014, we had federal and state net operating loss carryforwards of approximately $6.1
million and $270.6 million, respectively. The net operating loss carryforwards expire at various dates through 2034.
Limitations on utilization may apply to all of the federal and state net operating loss carryforwards. Accordingly,
valuation allowances have been provided to account for the potential limitations on utilization of these tax benefits. No
portion of the 2014 valuation allowance was allocated to reduce goodwill.