Assurant 2011 Annual Report Download - page 104

Download and view the complete annual report

Please find page 104 of the 2011 Assurant annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

ASSURANT, INC.2011 Form10-KF-28
7 Income Taxes
6. Premiums and Accounts Receivable
Receivables are reported net of an allowance for uncollectible amounts. A summary of such receivables is as follows:
As of December31,
2011 2010
Insurance premiums receivable $ 549,301 $ 468,334
Other receivables 127,528 107,721
Allowance for uncollectible amounts (27,707) (33,128)
TOTAL $ 649,122 $ 542,927
7. Income Taxes
e Company and the majority of its subsidiaries are subject to U.S. tax and  le a U.S. consolidated federal income tax return. Information
about current and deferred tax expense (bene t) follows:
Year Ended December31,
2011 2010 2009
Current expense:
Federal& state $ 239,819 $ 331,400 $ 295,779
Foreign 2,727 31,683 57,645
Total current expense 242,546 363,083 353,424
Deferred bene t:
Federal& state (89,459) (19,962) (28,143)
Foreign 16,029 (15,854) (46,249)
Total deferred bene t (73,430) (35,816) (74,392)
TOTAL INCOME TAX EXPENSE $ 169,116 $ 327,267 $ 279,032
e provision for foreign taxes includes amounts attributable to income from U.S. possessions that are considered foreign under U.S. tax laws.
International operations of the Company are subject to income taxes imposed by the jurisdiction in which they operate.
A reconciliation of the federal income tax rate to the Company’s e ective income tax rate follows:
December31,
2011 2010 2009
Federal income tax rate: 35.0% 35.0% 35.0%
Reconciling items:
Tax exempt interest (1.3) (1.3) (1.3)
Dividends received deduction (0.6) (0.8) (0.6)
Foreign earnings 2.8 3.5 3.1
Foreign tax credit (2.1) (2.2) (1.8)
Change in valuation allowance (11.5) 1.1 0.2
Goodwill — 17.7 4.1
Other 1.4 1.0 0.6
EFFECTIVE INCOME TAX RATE: 23.7% 54.0% 39.3%
As of December31, 2010, the Company had a valuation allowance of
$90,738. Of the total, $80,000 was related to deferred tax assets on
capital losses. During the year ended December31, 2011, the Company
recognized an income tax bene t of $80,584 primarily related to the
release of this valuation allowance due to su cient taxable investment
income of the appropriate character during the period. It is management’s
assessment that it is more likely than not that $10,154 of deferred tax
assets will not be realized.  e amount of the valuation allowance is
based on an assessment of the Company’s ability to generate taxable
income of the appropriate character in the future.