The Hartford 2015 Annual Report Download - page 212

Table of Contents THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
14. Income Taxes (continued)
F-81
A reconciliation of the tax provision at the U.S. federal statutory rate to the provision (benefit) for income taxes is as follows:
For the years ended December 31,
2015 2014 2013
Tax provision at U.S. federal statutory rate $ 692 $ 595 $ 515
Tax-exempt interest (132)(138) (138)
Dividends received deduction (156)(114) (139)
Increase (decrease) in valuation allowance (102) 5 (2)
Other 3 2 10
Provision for income taxes $ 305 $ 350 $ 246
The Company’s effective tax rate for the year ended December 31, 2015 reflects a $36 net reduction in the provision for income taxes
related to the release of reserves due to the resolution of uncertain tax positions consisting of a $48 reduction in the provision upon
conclusion of the Internal Revenue Service audit of the Company's 2007-2011 federal consolidated corporate income tax returns, offset
by a $12 increase in the provision due to the filing of the Company's 2014 federal consolidated income tax return.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
For the year ended
December 31,
2015
Balance, beginning of period $ 48
Gross increases - tax positions in prior period 12
Gross decreases - tax positions in prior period (48)
Balance, end of period $ 12
The Company’s unrecognized tax benefits were unchanged during the years ended December 31, 2014, and 2013 remaining at $48 as of
December 31, 2014, and 2013. The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the
period of the release.
As of December 31, 2015, the Company had a current income tax payable of $5.
The federal audit of the years 2012 and 2013 began in March 2015 and is expected to be completed in 2016. Management believes that
adequate provision has been made in the financial statements for any potential adjustments that may result from tax examinations and
other tax-related matters for all open tax years.
The Company classifies interest and penalties (if applicable) as income tax expense in the consolidated financial statements. The
Company recognized interest expense of $0, $0, and $5 for the years ended December 31, 2015, 2014 and 2013, respectively. The
Company had approximately $0 and $1 of interest payable as of December 31, 2015 and 2014, respectively. The Company does not
believe it would be subject to any penalties in any open tax years and, therefore, has not recorded any accrual for penalties.