Unum 2013 Annual Report Download - page 137

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UNUM 2013 ANNUAL REPORT / 135
Our net deferred tax liability consists of the following. Certain prior year amounts have been reclassified to conform to current
year reporting.
December 31
(in millions of dollars) 2013 2012
Deferred Tax Liability
Deferred Acquisition Costs $ 70.0 $ 39.3
Fixed Assets 80.3 74.1
Invested Assets 1,274.3 2,342.8
Other 54.4 63.2
Gross Deferred Tax Liability 1,479.0 2,519.4
Deferred Tax Asset
Reserves 1,180.1 1,934.2
Employee Benefits 151.2 315.2
Other 3.4 0.6
Gross Deferred Tax Asset 1,334.7 2,250.0
Total Net Deferred Tax Liability $ 144.3 $ 269.4
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) 2013 2012 2011
Income Before Tax
United States — Federal $1,072.0 $1,128.4 $ 160.5
Foreign 133.2 121.1 172.8
Total $1,205.2 $1,249.5 $ 333.3
Current Tax Expense
United States — Federal $ 277.9 $ 164.4 $ 218.4
Foreign 18.7 42.2 12.1
Total 296.6 206.6 230.5
Deferred Tax Expense (Benefit)
United States — Federal 47.3 173.5 (203.4)
Foreign 3.2 (25.0) 22.0
Total 50.5 148.5 (181.4)
Total $ 347.1 $ 355.1 $ 49.1
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 for the three percent tax
rate reduction enacted during 2013 and $9.3 million and $6.8 million for the two percent tax rate reductions enacted during 2012
and 2011, respectively.