Sun Life 2012 Annual Report Download - page 151

Compensation expense and the income tax expense (benefit) for these awards for the years ended December 31 are shown in the
following table:
For the years ended December 31, 2012 2011
Compensation expense $ 210 $ 206
Income tax expense (benefit) $ (53) $ (41)
21. Restructuring
In the fourth quarter of 2011, we restructured our operations, primarily in the United States. The domestic U.S. variable annuity and
individual life products were closed to new sales effective December 30, 2011.
As a result, we recognized a provision for restructuring costs during the fourth quarter of 2011. A provision for restructuring costs is
recognized when we have a detailed formal plan that identifies the business concerned, the locations affected, the location, function
and number employees to be compensated for termination of services, as well as the expenditures to be made and when the plan will
be implemented. The provision is our best estimate of the expenditures that will be required to settle our obligations under the plan and
includes only those costs that are a result of the restructuring and that are not associated with our ongoing activities.
In 2011, we recorded restructuring costs of $59, $17 of which is related to our continuing operations and included in Operating
expenses. The total restructuring costs consisted of the following:
Employee termination benefits $51
Lease termination and other costs 8
Total restructuring costs $59
As at December 31, 2011, the remaining restructuring liability was $53. We paid a significant amount of the costs accrued as part of
this liability in 2012. Additional restructuring costs that did not meet the recognition criteria in 2011 were expensed in 2012 as part of
the discontinued operation.
In addition to the restructuring costs above, we recognized charges in SLF U.S. of $94 due to impairment of the goodwill in the variable
annuities CGU, which is included as part of the discontinued operation described in Note 3, and $17 due to impairment of intangible
assets, $9 of which is related to our continuing operations. Further information on these impairments is included in Note 10.
22. Income Taxes
22.A Deferred Income Taxes
The following represents the deferred income tax assets and liabilities(1) as at December 31, in the Consolidated Statements of
Financial Position by source of temporary differences:
As at December 31, 2012 December 31, 2011
Assets Liabilities Assets Liabilities
Investments $ (1,153) $ 2 $ (790) $ 2
Policy liabilities(2)(3) 858 (1) 815 –
Deferred acquisition costs 220 – 302 –
Losses available for carry forward 748 – 924 –
Pension and other employee benefits 259 – 235 –
Other 73 4 208 5
Total $ 1,005 $ 5 $ 1,694 $ 7
Total net deferred tax asset $ 1,000 $ 1,687
Notes to Consolidated Financial Statements Sun Life Financial Inc. Annual Report 2012 149