Voya 2014 Annual Report Download - page 215

In order to demonstrate the predictability and sufficiency of future taxable income necessary to support the
recognition of the temporary differences and NOL carryforwards related to the $1.85 billion valuation release, we
considered our forecasts of future income using comparisons to historical results and actual and planned business
and operational changes, which included assumptions about future macroeconomic and Company-specific
conditions and events. We also subjected the forecasts to stresses (considering various adverse Company-specific
and macroeconomic risks) of key assumptions and effectiveness of relevant prudent and feasible tax planning
strategies. We ultimately limited our projections to amounts that were objectively verifiable. Our income
forecasts coupled with our tax planning strategies resulted in sufficient taxable income to achieve realization of
certain deferred tax assets (other than amounts for certain federal and state loss carryforwards, state temporary
differences and certain tax credits prior to their expiration).
As of December 31, 2014, we have recognized $418.9 million deferred tax assets based on tax planning
strategies related to unrealized gains on investment assets. These tax planning strategies support recognition of
deferred tax assets which have been provided on deductible temporary differences. Future changes, such as
interest rate movements, could adversely impact such tax planning strategies. To the extent unrealized gains
decrease or to the extent loss utilization is limited, the tax benefit will likely be reduced by increasing the tax
valuation allowance.
The deferred tax valuation allowance was approximately $1.0 billion and $2.8 billion as of December 31,
2014 and 2013, respectively. Pursuant to U.S. GAAP, we do not specifically identify the valuation allowance
with individual categories. However, as of December 31, 2014, we estimate that approximately $783.1 million
was related to federal net operating losses. The remaining balance was attributable to various items including
state taxes and other deferred tax assets. As of December 31, 2013, we estimated that approximately $1.0 billion,
$31 million, $264 million and $1.3 billion were related to federal net operating losses, non-life realized capital
losses, non-life subgroup deferred amounts and life subgroup deferred amounts, respectively. The remaining
balance was attributable to various items including state taxes and other deferred tax assets.
As of December 31, 2014, we had approximately $2.9 billion of federal net operating loss carryforwards,
which expire as follows (the deferred tax asset and offsetting valuation allowances, if any, are also presented).
The life ordinary loss is an SLDI-related loss which is subject to certain restrictions.
($ in millions)
Expiration
Life
Ordinary
Loss
Non-Life
Ordinary
Losses
Life
Capital
Losses
Non-Life
Capital
Losses
Total
Carryforward
2017 ...................................... $ — $ (3.2) $— $— $ (3.2)
2018 ...................................... — (5.3) — — (5.3)
2019 ...................................... — (8.2) — — (8.2)
2020 ...................................... — (24.9) — — (24.9)
2021 ...................................... — (59.0) — — (59.0)
2022 ...................................... — (7.2) — — (7.2)
2023 ...................................... — (89.4) — — (89.4)
2024 ...................................... — — — — —
2025 ...................................... — (510.1) — — (510.1)
2026 ...................................... — (355.0) — — (355.0)
2027 ...................................... — (168.4) — — (168.4)
2028 ...................................... (49.6) (214.2) — — (263.8)
2029 ...................................... — (411.5) — — (411.5)
2030 ...................................... — (379.2) — — (379.2)
2031 ...................................... — (59.4) — — (59.4)
2032 ...................................... — (130.7) — — (130.7)
2033 ...................................... — (166.8) — — (166.8)
2034 ...................................... — (311.3) — — (311.3)
Total losses .................................... $(49.6) $(2,903.8) $— $— $(2,953.4)
Gross deferred tax asset .......................... $17.4 $ 1,016.3 $— $— $ 1,033.7
Valuation allowance ............................. 17.4 765.7 — — 783.1
Deferred tax asset on losses ...................... $ — $ 250.6 $— $— $ 250.6
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