Assurant 2012 Annual Report Download - page 105

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ASSURANT, INC.2012 Form10-K F-29
7 Income Taxes
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,
2012 2011 2010
Current expense:
Federal & state $ 174,163 $ 239,819 $ 331,400
Foreign 28,751 2,727 31,683
Total current expense 202,914 242,546 363,083
Deferred expense (bene t):
Federal & state 71,372 (89,330) (18,388)
Foreign (240) 13,955 (16,797)
Total deferred expense (bene t) 71,132 (75,375) (35,185)
TOTAL INCOME TAX EXPENSE $ 274,046 $ 167,171 $ 327,898
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,
2012
2011
2010
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) (0.6) (0.8)
Foreign earnings(a) 0.5 0.7 1.4
Change in valuation allowance 0 (11.5) 1.1
Goodwill 0 0 17.7
Non deductible compensation 1.1 0 0
IRS audit settlement 1.0 0 0
Other 0.5 1.4 1.1
EFFECTIVE INCOME TAX RATE: 36.2% 23.7% 54.2%
(a) Results for all years primarily includes tax expense/(benefit) associated with the earnings of certain non-U.S. subsidiaries that are deemed reinvested indefinitely and realization of
foreign tax credits for certain other subs.
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 income of the appropriate character during the period.
A reconciliation of the beginning and ending amount of unrecognized tax bene ts for the years ended December31, 2012, 2011 and 2010 is
as follows:
Year Ended December31,
2012 2011 2010
Balance at beginning of year $ (17,524) $ (13,844) $ (23,142)
Additions based on tax positions related to the current year (499) (758) (1,209)
Reductions based on tax positions related to the current year 3,124 997 19,266
Additions for tax positions of prior years (20,830) (5,512) (14,277)
Reductions for tax positions of prior years 8,365 483 3,903
Lapses 374 700 1,120
Settlements 15,475 410 495
BALANCE AT END OF YEAR $ 11,515 $ 17,524 $ 13,844