The Hartford 2009 Annual Report Download - page 217

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
F-68
13. Income Tax
The Company recognizes taxes payable or refundable for the current year and deferred taxes for the tax consequences of differences
between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax
rates expected to apply to taxable income in the years the temporary differences are expected to reverse.
The provision (benefit) for income taxes consists of the following:
For the years ended December 31,
2009 2008 2007
Income Tax Expense (Benefit)
Current - U.S. Federal $502 $(247) $ 436
- International –– –– —
Total current 502 (247) 436
Deferred - U.S. Federal Excluding NOL Carryforward (1,580) (1,574) 473
- Net Operating Loss Carryforward 712 (742) —
- International (475) 721 147
Total deferred (1,343) (1,595) 620
Total income tax expense (benefit) $(841) $(1,842) $ 1,056
Deferred tax assets (liabilities) include the following as of December 31:
Deferred Tax Assets 2009 2008
Tax discount on loss reserves $682 $725
Tax basis deferred policy acquisition costs and reserves 641 703
Unearned premium reserve and other underwriting related reserves 401 405
Investment-related items 1,718 2,000
Employee benefits 494 419
Net unrealized losses on investments 1,581 4,265
Minimum tax credit 1,102 641
Capital loss carryover 535 195
Net operating loss carryover 86 850
Other 66 25
Total Deferred Tax Assets 7,306 10,228
Valuation Allowance (86) (75)
Deferred Tax Assets, Net of Valuation Allowance 7,220 10,153
Deferred Tax Liabilities
Financial statement deferred policy acquisition costs and reserves (3,179) (4,816)
Other depreciable & amortizable assets (43) (13)
Other (58) (85)
Total Deferred Tax Liabilities (3,280) (4,914)
Net Deferred Tax Asset $3,940 $5,239
The Company had a current income tax payable of $216 as of December 31, 2009 and a current tax receivable of $539 as of December
31, 2008. The Company’ s net deferred tax asset includes a net deferred tax liability of $849 and $1,458 for Japan in 2009 and 2008,
respectively.