Sun Life 2015 Annual Report Download - page 156

The movement in net deferred tax assets for the years ended December 31, are as follows:
Investments
Policy
liabilities(1)
Deferred
acquisition
costs
Losses
available
for carry
forward
Pension
and other
employee
benefits Other(2) Total
As at December 31, 2014 $ (1,157) $ 378 $ 199 $ 1,078 $ 364 $ 213 $ 1,075
Acquisitions (disposals) through
business combinations – – – 3 2 (93) (88)
Charged to statement of operations 235 (185) (17) (344) (29) 163 (177)
Charged to other comprehensive
income 86 – – (7) 12 24 115
Foreign exchange rate movements (101) (24) 41 92 27 7 42
As at December 31, 2015 $ (937) $ 169 $ 223 $ 822 $ 376 $ 314 $ 967
(1) Consists of Insurance contract liabilities and Investment contract liabilities net of Reinsurance assets.
(2) Includes unused tax credits.
Investments
Policy
liabilities(1)
Deferred
acquisition
costs
Losses
available
for carry
forward
Pension
and other
employee
benefits Other(2) Total
As at December 31, 2013 $ (762) $ (50) $ 217 $ 1,288 $ 292 $ 196 $ 1,181
Charged to statement of
operations (301) 432 (39) (302) 10 7 (193)
Charged to other comprehensive
income (58) – – (5) 63 4 4
Foreign exchange rate movements (36) (4) 21 65 (1) 6 51
Adjustments on sale of
discontinued operation – – – 32 – – 32
As at December 31, 2014 $ (1,157) $ 378 $ 199 $ 1,078 $ 364 $ 213 $ 1,075
(1) Consists of Insurance contract liabilities and Investment contract liabilities net of Reinsurance assets.
(2) Includes unused tax credits.
We have accumulated non-capital tax losses, primarily in Canada, the U.S., and the U.K., totaling $3,617 ($4,199 in 2014). The benefit
of these tax losses has been recognized to the extent that it is probable that the benefit will be realized. In addition, in the U.S., we
have unused tax credits for which a deferred tax asset has been recognized in the amount of $194 ($102 in 2014). Unused tax losses
for which a deferred tax asset has not been recognized amount to $688 as of December 31, 2015 ($414 in 2014) in the Philippines,
Indonesia, and the U.K. We also have capital losses of $524 in the U.K. ($465 in 2014) and $193 in Canada ($nil in 2014) for which a
deferred tax asset of $120 ($93 in 2014) has not been recognized.
We will realize the benefit of 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, and we also considered tax planning opportunities that will create taxable income in the period in
which the unused tax losses can be utilized.
The non-capital losses carried forward in Canada expire beginning in 2028 and the capital losses can be carried forward indefinitely.
The non-capital tax losses carried forward in the U.S expire beginning in 2023 and the unused tax credits expire beginning in 2018.
The operating and capital losses in the U.K. can be carried forward indefinitely.
We recognize a deferred tax liability on all temporary differences associated with investments in subsidiaries, branches, joint ventures
and associates 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, 2015, temporary differences associated with investments in subsidiaries,
branches, joint ventures and associates for which a deferred tax liability has not been recognized amount to $6,037 ($4,169 in 2014).
154 Sun Life Financial Inc. Annual Report 2015 Notes to Consolidated Financial Statements