Travelers 2014 Annual Report Download - page 228

Table of Contents
THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
12. INCOME TAXES
The Company paid income taxes of $1.15 billion, $1.06 billion and $188 million during the years ended December 31, 2014, 2013 and 2012,
respectively. The current income tax payable was $139 million and $85 million at December 31, 2014 and 2013, respectively, and was included in
other liabilities in the consolidated balance sheet.
227
(for the year ended December 31, in millions)
2014
2013
2012
Composition of income tax expense included in the consolidated
statement of income
Current expense:
Federal
$
1,216
$
1,059
$
406
Foreign
28
30
45
State
10
6
3
Total current tax expense
1,254
1,095
454
Deferred expense:
Federal
121
167
223
Foreign
22
10
16
Total deferred tax expense
143
177
239
Total income tax expense included in the consolidated statement of
income
1,397
1,272
693
Composition of income tax included in shareholders' equity
Expense (benefit) relating to share - based compensation, the changes
in unrealized gain on investments, unrealized loss on foreign
exchange and other items in other comprehensive income
68
(822
)
57
Total income tax expense included in the consolidated financial
statements
$
1,465
$
450
$
750
(for the year ended December 31, in millions)
2014
2013
2012
Income before income taxes
U.S
$
4,899
$
4,804
$
2,955
Foreign
190
141
211
Total income before income taxes
5,089
4,945
3,166
Effective tax rate
Statutory tax rate
35
%
35
%
35
%
Expected federal income tax expense
1,781
1,731
1,108
Tax effect of:
Nontaxable investment income
(379
)
(409
)
(427
)
Other, net
(5
)
(50
)
12
Total income tax expense
$
1,397
$
1,272
$
693
Effective tax rate
27
%
26
%
22
%