Voya 2013 Annual Report Download - page 340

ING U.S., Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
Temporary Differences
The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of
December 31, 2013 and 2012, are presented below:
2013 2012
Deferred tax assets
Federal and state loss carryforwards ............ $1,112.9 $ 1,154.9
Investments ................................ 3,379.2 1,811.1
Insurance reserves ........................... 499.3 1,967.1
Compensation and benefits .................... 423.7 578.7
Other assets ................................ 399.4 182.7
Total gross assets before valuation allowance ..... 5,814.5 5,694.5
Less: Valuation allowance ................ 2,821.9 2,974.1
Assets, net of valuation allowance .............. 2,992.6 2,720.4
Deferred tax liabilities
Net unrealized investment gains ................ (1,160.3) (2,707.9)
Deferred policy acquisition costs ............... (1,596.4) (1,045.3)
Other liabilities ............................. (73.8) (9.9)
Total gross liabilities .................... (2,830.5) (3,763.1)
Net deferred income tax asset (liability) ............. $ 162.1 $(1,042.7)
The following table sets forth the federal, state and capital loss carryforwards for tax purposes as of
December 31, 2013 and 2012:
2013 2012
Federal net operating loss carryforward(1) .............. $2,871.5 $2,947.0
State net operating loss carryforward(1) ................ 2,376.0 2,373.6
Federal tax capital loss carryforward(2) ................ 88.3 123.4
Credit carryforward(3) ............................. 279.1 191.5
(1) Expire between 2017 and 2033.
(2) Expire between 2014 and 2018.
(3) Expire between 2014 and 2033.
Valuation allowances are provided when it is considered unlikely that deferred tax assets will be realized. As of
December 31, 2013 and 2012, the Company had valuation allowances of $3.2 billion and $3.3 billion
respectively, that were allocated to continuing operations, and $(354.1) and $(288.5) as of the end of each period
that were allocated to other comprehensive income related to realized and unrealized capital losses.
For the years ended December 31, 2013, 2012 and 2011, the increases (decreases) in the valuation allowances
were $(152.2), $99.1, and $(212.0), respectively. In 2013, 2012 and 2011, there were increases (decreases) of
$(86.6), $99.1, and $175.0, respectively, in the valuation allowance that were allocated to operations and
(decreases) of $(65.6), $0.0 and $(387.0), respectively, that were allocated to Other comprehensive income. With
respect to the 2013 amount allocated to operations, the decrease of $(86.6) was due to positive evidence
primarily the result of current year net income before income tax. With respect to the 2012 amount allocated to
operations, there was a decrease of $(48.3) that impacted income tax expense as a reduction in the valuation
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