Unum 2014 Annual Report Download - page 134

132 UNUM • 2014 ANNUAL REPORT
Notes To Consolidated Financial Statements
Our consolidated statements of income include amounts subject to both domestic and foreign taxation. The income and related
tax expense (benefit) are as follows:
Year Ended December 31
(in millions of dollars) 2014 2013 2012
Income Before Tax
United States — Federal $376.9 $1,072.0 $1,128.4
Foreign 150.3 133.2 121.1
Total $527.2 $1,205.2 $1,249.5
Current Tax Expense (Benefit)
United States — Federal $128.4 $ 277.9 $ 164.4
Foreign (25.1) 18.7 42.2
Total 103.3 296.6 206.6
Deferred Tax Expense (Benefit)
United States — Federal (44.4) 47.3 173.5
Foreign 54.9 3.2 (25.0)
Total 10.5 50.5 148.5
Total $113.8 $ 347.1 $ 355.1
The U.K. government enacted income tax rate reductions during each of the years 2010 through 2013. During 2013, the rate was
reduced from 23 percent to 21 percent effective April 2014, and to 20 percent effective April 2015. Although the rate reductions in each
instance became or will become effective during a subsequent year, we are required to adjust deferred tax assets and liabilities through
income on the date of enactment of a rate change. As a result, we recorded income tax benefits of $6.3 million and $9.3 million for the tax
rate reductions enacted during 2013 and 2012, respectively.
We consider the unremitted earnings of our foreign operations to be permanently invested and therefore have not provided
U.S. deferred taxes on the cumulative earnings of our non-U.S. affiliates. Deferred taxes are provided for earnings of non-U.S. affiliates when
we plan to remit those earnings. As of December 31, 2014, we have not made a provision for U.S. taxes on approximately $1 billion
of the excess of the carrying amount for financial reporting over the tax basis of investments in foreign subsidiaries that are essentially
permanent in duration. The determination of a deferred tax liability related to investments in these foreign subsidiaries is not practicable.
Our consolidated statements of income include the following changes in unrecognized tax benefits:
December 31
(in millions of dollars) 2014 2013 2012
Balance at Beginning of Year $ 18.4 $ 17.5 $ 86.9
Tax Positions Taken During Prior Years
Additions 1.7 5.7 13.3
Subtractions — — (0.6)
Settlements with Tax Authorities (0.6) (4.8) (23.5)
Lapses of Statute of Limitations — — (61.1)
Tax Positions Taken During Current Year 0.3 — 2.5
Balance at End of Year 19.8 18.4 17.5
Less Tax Attributable to Temporary Items Included Above (10.4) (10.2) (15.0)
Total Unrecognized Tax Benefits that if Recognized
Would Affect the Effective Tax Rate $ 9.4 $ 8.2 $ 2.5