Humana 2015 Annual Report Download - page 122
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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
114
The provision for income taxes was different from the amount computed using the federal statutory rate for the
years ended December 31, 2015, 2014 and 2013 due to the following:
2015 2014 2013
(in millions)
Income tax provision at federal statutory rate $ 851 $ 759 $ 672
States, net of federal benefit, and Puerto Rico 44 48 32
Tax exempt investment income (24)(27)(26)
Health insurer fee 314 204 —
Nondeductible executive compensation 18 22 6
Concentra sale (67)— —
Other, net 19 17 6
Provision for income taxes $ 1,155 $ 1,023 $ 690
The provision for income taxes for 2015, 2014, and 2013 reflects an $18 million, $22 million, and $6 million,
respectively, estimated impact from limitations on the deductibility of annual compensation in excess of $500,000 per
employee as mandated by the Health Care Reform Law. As of December 31, 2015, we do not have material uncertain
tax positions reflected in our consolidated balance sheet.
Deferred income tax balances reflect the impact of temporary differences between the tax bases of assets or liabilities
and their reported amounts in our consolidated financial statements, and are stated at enacted tax rates expected to be
in effect when the reported amounts are actually recovered or settled. Principal components of our net deferred tax
balances at December 31, 2015 and 2014 were as follows, excluding Concentra amounts classified as held-for-sale at
December 31, 2014 for comparative purposes. The net deferred tax liability associated with Concentra and classified
as held-for sale at December 31, 2014 was $55 million.
Assets (Liabilities)
2015 2014
(in millions)
Future policy benefits payable $ 200 $ 320
Compensation and other accrued expenses 130 168
Benefits payable 267 138
Net operating loss carryforward 47 52
Deferred acquisition costs 64 57
Unearned revenues 22 21
Other 13 17
Total deferred income tax assets 743 773
Valuation allowance (42)(48)
Total deferred income tax assets, net of valuation allowance 701 725
Depreciable property and intangible assets (363)(346)
Investment securities (37)(168)
Prepaid expenses (45)(55)
Total deferred income tax liabilities (445)(569)
Total net deferred income tax assets $ 256 $ 156
Amounts recognized in the consolidated balance sheets:
Other current assets $ — $ 79
Other long-term assets 256 77
Total net deferred income tax assets $ 256 $ 156