Assurant 2015 Annual Report Download - page 121

ASSURANT, INC. – 2015 Form 10-K F-35
8 Income Taxes
The tax effects of temporary differences that result in signicant deferred tax assets and deferred tax liabilities are as follows:
December 31,
2015 2014
Deferred Tax Assets
Policyholder and separate account reserves $ 568,053 $498,231
Accrued liabilities 32,257 23,183
Investments, net 140,785 168,061
Net operating loss carryforwards 40,479 50,103
Deferred gain on disposal of businesses 32,362 35,347
Compensation related 28,289 24,029
Employee and post-retirement benets 115,904 111,716
Unearned fee income 50,931 55,765
Other 48,548 40,584
Total deferred tax asset 1,057,608 1,007,019
Less valuation allowance (13,218)(18,164)
Deferred tax assets, net of valuation allowance 1,044,390 988,855
Deferred Tax Liabilities
Deferred acquisition costs (931,630)(867,212)
Net unrealized appreciation on securities (262,075)(435,375)
Total deferred tax liability (1,193,705)(1,302,587)
NET DEFERRED INCOME TAX LIABILITY $ (149,315) $ (313,732)
The net deferred tax liability of $149,315 as of December 31,
2015 is comprised of $177,748 deferred tax liabilities and
$28,433 deferred tax assets, by jurisdiction. Similarly, the net
deferred tax liability of $313,732 as of December 31, 2014
is comprised of $341,290 deferred tax liabilities and $27,558
deferred tax assets, by jurisdiction.
The Company’s valuation allowance against deferred tax assets
decreased $4,946 to $13,218 at December 31, 2015 from $18,164
at December 31, 2014. A cumulative valuation allowance
of $13,218 has been recorded because it is management’s
assessment that it is more likely than not that only $1,044,390
of deferred tax assets will be realized� The valuation allowance
relates to the deferred tax assets attributable to certain
international subsidiaries�
The Company’s ability to realize deferred tax assets depends
on its ability to generate sufcient taxable income of the
same character within the carryback or carryforward periods�
In assessing future taxable income, the Company considered
all sources of taxable income available to realize its deferred
tax asset, including the future reversal of existing temporary
differences, future taxable income exclusive of reversing
temporary differences 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 indenitely reinvest the earnings in these other
jurisdictions� The cumulative amount of undistributed earnings
for which the Company has not provided deferred income taxes
is $198,325. Upon distribution of such earnings in a taxable
event, the Company would incur additional U.S. income taxes
of $21,285, net of anticipated foreign tax credits.
At December 31, 2015, the Company and its subsidiaries had $163,722 of net operating loss carryforwards in certain foreign
subsidiaries that will expire if unused as follows:
Expiration Year Amount
2016 – 2020 $ 31,205
2021 – 2025 7,436
2026 – 2030 4,140
2031 – 2035 19,200
Unlimited 101,741
$ 163,722