Voya 2014 Annual Report Download - page 363

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
Unrecognized Tax Benefits
Reconciliations of the change in the unrecognized income tax benefits were as follows for the periods indicated:
Year Ended December 31,
2014 2013 2012
Balance at beginning of period ........................... $60.9 $61.1 $ 74.0
Additions for tax positions related to current year ............ 4.7 1.7 2.4
Additions for tax positions related to prior years ............. 4.9 4.4 1.3
Reductions for tax positions related to prior years ............ (6.1) (1.2) (6.0)
Reductions for settlements with taxing authorities ............ (0.2) — —
Reductions for expiring statutes .......................... (1.8) (5.1) (10.6)
Balance at end of period ................................ $62.4 $60.9 $ 61.1
The Company had $14.1, $16.1, and $19.7 of unrecognized tax benefits as of December 31, 2014, 2013 and
2012, respectively, which would affect the Company’s effective rate if recognized.
Interest and Penalties
The Company recognizes interest expense and penalties, if applicable, related to unrecognized tax benefits in tax
expense net of federal income tax. The total amounts of gross accrued interest and penalties on the Company’s
Consolidated Balance Sheets as of December 31, 2014 and 2013 were $7.0 and $6.2, respectively. The Company
recognized gross interest (benefit) related to unrecognized tax in its Consolidated Statements of Operations of
$0.8, $0.3 and $(17.3) for the years ended December 31, 2014, 2013 and 2012, respectively.
Upon finalization of various state examinations it is reasonably possible that the unrecognized tax benefits will
decrease by up to $14.0 within the next twelve months. The timing of the payment of the remaining allowance of
$48.4 cannot be reasonably estimated.
Tax Regulatory Matters
During April 2014, the IRS completed its examination of the Company’s returns through tax year 2012. The
2012 audit settlement did not have a material impact on the Company. The Company is currently under audit by
the IRS, and it is expected that the examination of tax year 2013 will be finalized within the next twelve months.
The Company and the IRS have agreed to participate in the Compliance Assurance Process for the tax years 2013
through 2015.
The IRS issued a Directive dated July 17, 2014 that it should not challenge the qualification of certain hedges and
should not challenge certain tax accounting methods. The Company does not expect this Directive to have a
material impact on the Company.
16. Financing Agreements
Short-term Debt
The Company did not have any short-term debt borrowings outstanding as of December 31, 2014 and 2013.
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