XML 70 R33.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Components of Income Tax Provision |
(millions) | 2017 |  | 2016 |  | 2015 |
Current tax provision |  |  |  |  |  |
Federal | $ | 680.9 |  | $ | 469.6 |  | $ | 655.3 |
State | 12.8 |  | 12.7 |  | 14.7 |
Deferred tax expense (benefit) |  |  |  |  |  |
Federal | (149.4 | ) | (66.3 | ) | (47.7 | )
State | (3.5 | ) | (2.5 | ) | (11.2 | )
Total income tax provision | $ | 540.8 |  | $ | 413.5 |  | $ | 611.1 |
Reconciliation of Provision (Benefit) for Income Taxes Reported in Consolidated Statements of Income with Tax at Statutory Rate |
($ in millions) | 2017 |  | 2016 |  | 2015
Income before income taxes | $ | 2,138.9 |  |  |  | $ | 1,470.7 |  |  |  | $ | 1,911.6 |  |
Tax at statutory federal rate | $ | 748.6 |  | 35 | % |  | $ | 514.8 |  | 35 | % |  | $ | 669.1 |  | 35 | %
Tax effect of: |  |  |  |  |  |  |  |
Net deferred tax liability revaluation 1 | (99.5 | ) | (5 | ) |  | 0 |  | 0 |  |  | 0 |  | 0 |
Tax credits | (52.4 | ) | (2 | ) |  | (62.2 | ) | (4 | ) |  | (1.9 | ) | 0 |
Stock-based compensation 2 | (25.1 | ) | (1 | ) |  | 0 |  | 0 |  |  | 0 |  | 0 |
Dividends received deduction | (20.7 | ) | (1 | ) |  | (22.6 | ) | (2 | ) |  | (19.8 | ) | (1 | )
Exempt interest income | (16.9 | ) | (1 | ) |  | (15.7 | ) | (1 | ) |  | (17.8 | ) | (1 | )
Tax-deductible dividends | (9.7 | ) | 0 |  |  | (6.1 | ) | 0 |  |  | (7.9 | ) | 0 |
Nondeductible compensation expense 3 | 10.1 |  | 0 |  |  | 0.5 |  | 0 |  |  | 0.3 |  | 0 |
State income taxes, net of federal taxes | 6.0 |  | 0 |  |  | 6.6 |  | 0 |  |  | 2.3 |  | 0 |
Other items, net | 0.4 |  | 0 |  |  | (1.8 | ) | 0 |  |  | 0.6 |  | 0 |
Non-taxable gain 4 | 0 |  | 0 |  |  | 0 |  | 0 |  |  | (13.8 | ) | (1 | )
Total income tax provision | $ | 540.8 |  | 25 | % |  | $ | 413.5 |  | 28 | % |  | $ | 611.1 |  | 32 | %
1 Pursuant to the recently enacted legislation commonly known as the Tax Cuts and Jobs Act of 2017 (the “Tax Act”); see further discussion below. 2 Represents excess tax benefits associated with share-based payments awards. Prior to 2017, these excess tax benefits were recorded directly to additional paid-in capital under the then existing accounting guidance. 3 Increase in 2017 primarily reflects changes in compensation that qualifies for deduction under the Tax Act. 4 Represents the tax effect of holding period gains on the 5% interest in ARX we owned prior to acquisition of a controlling interest on April 1, 2015.
Components of Net Deferred Tax Assets | t December 31, 2017 and 2016. As noted above, the federal deferred tax assets and liabilities at December 31, 2017, have been revalued to reflect the new 21% federal corporate income tax rate under the Tax Act.
(millions) | 2017 |  | 2016 |
Federal deferred tax assets: |  |
Unearned premiums reserve | $ | 368.9 |  | $ | 515.6 |
Non-deductible accruals | 166.0 |  | 259.9 |
Loss and loss adjustment expense reserves | 48.4 |  | 76.5 |
Hedges on forecasted transactions | 4.8 |  | 5.1 |
Investment basis differences | 0 |  | 31.3 |
Other | 7.3 |  | 8.9 |
Federal deferred tax liabilities: |  |
Net unrealized gains on securities | (419.5 | ) | (507.2 | )
Deferred acquisition costs | (163.9 | ) | (227.9 | )
Property and equipment | (75.5 | ) | (120.2 | )
Intangible assets | (66.6 | ) | (145.3 | )
Prepaid expenses | (7.1 | ) | (9.2 | )
Investment basis differences | (5.5 | ) | 0 |
Deferred gain on extinguishment of debt | (0.4 | ) | (1.5 | )
Other | (6.1 | ) | (7.7 | )
Net federal deferred tax liability | (149.2 | ) | (121.7 | )
Net state deferred tax asset | 14.2 |  | 10.4 |
Net deferred tax liability | $ | (135.0 | ) | $ | (111.3 | )

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration