Assurant 2010 Annual Report Download - page 99

F-29ASSURANT, INC.  2010 Form 10K
8 Income Taxes
 e tax eff ects of temporary diff erences that result in signifi cant deferred tax assets and deferred tax liabilities are as follows:
December 31,
2010 2009
Deferred Tax Assets
Policyholder and separate account reserves $ 512,504 $ 526,076
Accrued liabilities 10,286 12,435
Investments, net 76,703 76,562
Net operating loss carryforwards 52,897 47,015
Capital loss carryforwards 147,887 170,768
Deferred gain on disposal of businesses 54,185 57,715
Compensation related 61,846 61,313
Employee and post-retirement benefi ts 115,497 95,233
Other 48,268 10,992
Total deferred tax asset 1,080,073 1,058,109
Less valuation allowance (90,738) (81,688)
Deferred tax assets, net of valuation allowance 989,335 976,421
Deferred Tax Liabilities
Deferred acquisition costs (705,807) (714,829)
Net unrealized appreciation on securities (207,098) (94,352)
Total deferred tax liability (912,905) (809,181)
NET DEFERRED INCOME TAX ASSET $ 76,430 $ 167,240
 e Company’s total valuation allowance against deferred tax assets
increased by $9,050 to $90,738 at December 31, 2010 from $81,688
at December 31, 2009. A cumulative valuation allowance of $90,738
has been recorded because it is management’s assessment that it is
more likely than not that only $989,335 of deferred tax assets will be
realized. Of the total $90,738 valuation allowance $80,000 relates to
the deferred tax asset on capital losses.
 e Company’s ability to realize deferred tax assets depends on its
ability to generate suffi cient taxable income of the same character
within the carryback or carryforward periods. In assessing future GAAP
taxable income, the Company considered all sources of taxable income
available to realize its deferred tax asset, including the future reversal
of existing temporary diff erences, future taxable income exclusive of
reversing temporary diff erences and carryforwards, taxable income in
carryback years and tax-planning strategies. If changes occur in the
assumptions underlying the Company’s tax planning strategies or in
the scheduling of the reversal of the Company’s deferred tax liabilities,
the valuation allowance may need to be adjusted in the future.
Other than for certain wholly owned Canadian subsidiaries, deferred
taxes have not been provided on the undistributed earnings of wholly
owned foreign subsidiaries since the Company intends to indefi nitely
reinvest the earnings in these other jurisdictions.  e cumulative amount
of undistributed earnings for which the Company has not provided
deferred income taxes is $128,842. Upon distribution of such earnings
in a taxable event, the Company would incur additional U.S. income
taxes of $31,421 net of anticipated foreign tax credits.
At December 31, 2010, the Company and its subsidiaries had net operating loss carryforwards for U.S. federal and foreign income tax purposes.
Net operating loss carryforwards total $174,881 and will expire if unused as follows:
Expiration Year Amount
2012 $ 183
2013 1,604
2014 7,859
2015 9,978
2016 510
2017 5,783
2018 2,658
2019 2,767
2020 1,827
2021 67
2022 1,476
2023 2,144
2024 2,203
2025 2,637
unlimited 133,185
$ 174,881
At December 31, 2010, the Company and its subsidiaries have $422,533 of capital loss carryovers, all of which were generated during 2008 and
2009 for U.S. federal and state income tax purposes.  e 2008 capital loss carryovers of $388,608 will expire if not utilized within three years
while the 2009 capital loss carryovers of $33,925 will expire if not utilized within four years.