Prudential 2012 Annual Report Download - page 181

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
18. EMPLOYEE BENEFIT PLANS (continued)
The expected benefit payments for the Company’s pension and postretirement plans, as well as the expected Medicare Part D subsidy
receipts related to the Company’s postretirement plan, for the years indicated are as follows:
Pension Benefit
Payments
Other
Postretirement
Benefit Payments
Other
Postretirement
Benefits-
Medicare Part
D Subsidy
Receipts
(in millions)
2013 ......................................................................... $ 642 $ 194 $ 18
2014 ......................................................................... 650 194 19
2015 ......................................................................... 657 193 20
2016 ......................................................................... 671 191 20
2017 ......................................................................... 685 189 21
2018-2022 .................................................................... 3,705 906 106
Total ......................................................................... $7,010 $1,867 $204
The Company anticipates that it will make cash contributions in 2013 of approximately $140 million to the pension plans and
approximately $10 million to the postretirement plans.
Postemployment Benefits
The Company accrues postemployment benefits for income continuance and health and life benefits provided to former or inactive
employees who are not retirees. The net accumulated liability for these benefits at December 31, 2012 and 2011 was $41 million and $34
million, respectively, and is included in “Other liabilities.”
Other Employee Benefits
The Company sponsors voluntary savings plans for employees (401(k) plans). The plans provide for salary reduction contributions by
employees and matching contributions by the Company of up to 4% of annual salary. The matching contributions by the Company
included in “General and administrative expenses” were $54 million, $54 million and $52 million for the years ended December 31, 2012,
2011 and 2010, respectively.
19. INCOME TAXES
The components of income tax expense (benefit) for the years ended December 31, were as follows:
2012 2011 2010
(in millions)
Current tax expense (benefit)
U.S. .............................................................................................. $ 674 $ 73 $ (728)
State and local ...................................................................................... 27 2 12
Foreign ........................................................................................... 387 372 348
Total ............................................................................................. 1,088 447 (368)
Deferred tax expense (benefit)
U.S. .............................................................................................. (428) 760 1,248
State and local ...................................................................................... (4) 9 41
Foreign ........................................................................................... (452) 272 322
Total ............................................................................................. (884) 1,041 1,611
Total income tax expense on continuing operations before equity in earnings of operating joint ventures ................... 204 1,488 1,243
Income tax expense on equity in earnings of operating joint ventures ............................................... 19 79 25
Income tax expense on discontinued operations ................................................................ 8 18 48
Income tax expense (benefit) reported in equity related to:
Other comprehensive income .......................................................................... 2,667 1,301 1,559
Stock-based compensation programs .................................................................... (56) (19) 1
Total income taxes ...................................................................................... $2,842 $2,867 $2,876
As of December 31, 2012, Congress failed to extend a number of tax provisions that expired at the end of 2011. One such provision
provides tax deferral for investment income earned by a foreign insurance operation until the income is repatriated to the U.S. On
January 2, 2013, the expired tax provision for such investment income was retroactively reinstated. For 2012, as a result of the expiration of
this provision, the total income tax expense on continuing operations before equity in earnings of operating joint ventures and the total
income tax expense related to other comprehensive income include income tax expense equal to $2 million and $58 million, respectively.
In the quarter ended March 31, 2013, total income tax expense on continuing operations before equity in earnings of operating joint
ventures will include a tax benefit equal to $60 million to reflect the retroactive reinstatement of the tax provision.
Prudential Financial, Inc. 2012 Annual Report 179