Sun Life 2012 Annual Report Download - page 152

The movement in net deferred income tax assets for the years ended December 31, are as follows:
Investments
Policy
liabilities(2)(3)
Deferred
acquisition
costs
Losses
available
for carry
forward
Pension
& other
employee
benefits Other Total
As at December 31, 2011 $ (792) $ 815 $ 302 $ 924 $ 235 $ 203 $ 1,687
Charged to income statement (254) 272 (64) (133) 47 (18) (150)
Charged to other comprehensive
income (60) – – (8) – 3 (65)
Charged to equity, other than
other comprehensive income – – – – (30) 2 (28)
Foreign exchange rate
movements 8 (21) (7) (8) (1) (9) (38)
Less: Held for sale (57) (207) (11) (27) 8 (112) (406)
As at December 31, 2012 $ (1,155) $ 859 $ 220 $ 748 $ 259 $ 69 $ 1,000
Investments
Policy
liabilities(2)(3)
Deferred
acquisition
costs
Losses
available
for carry
forward
Pension
& other
employee
benefits Other Total
As at January 1, 2011 $ (439) $ (82) $ 293 $ 943 $ 221 $ 10 $ 946
Charged to income statement (343) 891 1 (54) 19 189 703
Charged to other comprehensive
income 16 – – 20 – 3 39
Charged to equity, other than other
comprehensive income 4 – – – – (7) (3)
Foreign exchange rate movements (30) 6 8 15 (5) 8 2
As at December 31, 2011 $ (792) $ 815 $ 302 $ 924 $ 235 $ 203 $ 1,687
(1) Our deferred income tax assets and deferred income tax liabilities are offset when there is legally enforceable right to offset current income tax assets against current income
tax liabilities and when the deferred income taxes relate to the same taxable entity and the same taxation authority. Negative amounts reported under Assets are deferred
income tax liabilities included in a net deferred income tax asset position; negative amounts under Liabilities are deferred income tax assets included in a net deferred
income tax liability position.
(2) Consists of Insurance contract liabilities and Investment contract liabilities net of Reinsurance assets.
(3) 2011 balances have been restated. Refer to Note 2.
We have accumulated tax losses, primarily in Canada, the United States, and the United Kingdom, totaling $3,303 (for Combined
Operations $4,422 in 2011). The benefit of these tax losses has been recognized to the extent that it is probable that the benefit will be
realized. Unused tax losses for which a deferred tax asset has not been recognized amount to $496 as of December 31, 2012 ($727 in
2011) in Asia and the U.K.
We will realize the benefit of the tax losses carried forward in future years through a reduction in current income taxes as and when the
losses are utilized. These tax losses are subject to examination by various tax authorities and could be reduced as a result of the
adjustments to tax returns. Furthermore, legislative, business or other changes may limit our ability to utilize these losses.
Included in the deferred tax asset related to losses available for carry forward are tax benefits that have been recognized on losses
incurred in either the current or the preceding year. In determining if it is appropriate to recognize these tax benefits we relied on
projections of future taxable profits.
Tax losses carried forward in the United States consist of non-capital losses which expire beginning in 2023. The non-capital losses
carried forward in Canada expire beginning in 2028. The losses in the United Kingdom can be carried forward indefinitely.
We recognize a deferred income tax liability on all temporary differences associated with investments in subsidiaries, branches,
associates and joint ventures unless we are able to control the timing of the reversal of these differences and it is probable that these
differences will not reverse in the foreseeable future. As at December 31, 2012, temporary differences associated with investments in
subsidiaries, branches, associates and joint ventures for which a deferred income tax liability has not been recognized amount to
$3,054 (for Combined Operations $2,822 in 2011).
150 Sun Life Financial Inc. Annual Report 2012 Notes to Consolidated Financial Statements