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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income tax expense (benefit) consists of:
(In thousands) | Current Expense |  | Deferred (Benefit) Expense |  | Total
December 31, 2023 |  |  |  |  |
Domestic | $ | 352,891 |  |  | $ | (43,456) |  |  | $ | 309,435 |
Foreign | 44,372 |  |  | 16,750 |  |  | 61,122 |
Total expense (benefit) | $ | 397,263 |  |  | $ | (26,706) |  |  | $ | 370,557 |
December 31, 2022 |  |  |  |  |
Domestic | $ | 295,849 |  |  | $ | (27,544) |  |  | $ | 268,305 |
Foreign | 42,890 |  |  | 23,532 |  |  | 66,422 |
Total expense (benefit) | $ | 338,739 |  |  | $ | (4,012) |  |  | $ | 334,727 |
December 31, 2021 |  |  |  |  |
Domestic | $ | 239,090 |  |  | $ | 2,752 |  |  | $ | 241,842 |
Foreign | — |  |  | 10,048 |  |  | 10,048 |
Total expense | $ | 239,090 |  |  | $ | 12,800 |  |  | $ | 251,890 |
Income before income taxes from domestic operations was $1,430 million, $1,240 million and $1,224 million for the years ended December 31, 2023, 2022 and 2021, respectively. Income before income taxes from foreign operations was $324 million, $480 million and $59 million for the years ended December 31, 2023, 2022 and 2021, respectively. A reconciliation of the income tax expense and the amounts computed by applying the Federal and foreign income tax rate of 21% for 2023, 2022 and 2021 to pre-tax income are as follows:
(In thousands) | 2023 |  | 2022 |  | 2021
Computed “expected” tax expense | $ | 368,425 |  |  | $ | 361,133 |  |  | $ | 269,410 |
Tax-exempt investment income | (8,361) |  |  | (10,815) |  |  | (11,380) |
Change in valuation allowance | (10,883) |  |  | (28,064) |  |  | 2,974 |
Impact of foreign tax rates | 5,461 |  |  | (453) |  |  | (2,368) |
State and local taxes | 12,271 |  |  | 8,976 |  |  | 4,230 |
Other, net | 3,644 |  |  | 3,950 |  |  | (10,976) |
Total expense | $ | 370,557 |  |  | $ | 334,727 |  |  | $ | 251,890 |
At December 31, 2023 and 2022, the tax effects of differences that give rise to significant portions of the deferred tax asset and deferred tax liability are as follows:
(In thousands) | 2023 |  | 2022
Deferred tax asset: |  |  |
Loss reserve discounting | $ | 230,956 |  |  | $ | 192,181 |
Unearned premiums | 200,938 |  |  | 180,326 |
Unrealized investment losses | 126,693 |  |  | 228,456 |
Net operating losses & foreign tax credits | 59,154 |  |  | 58,182 |
Other-than-temporary impairments | 12,691 |  |  | 5,935 |
Employee compensation plans | 68,062 |  |  | 63,313 |
Other | 78,025 |  |  | 72,536 |
Gross deferred tax asset | 776,519 |  |  | 800,929 |
Less valuation allowance | (36,283) |  |  | (47,166) |
Deferred tax asset | 740,236 |  |  | 753,763 |
Deferred tax liability: |  |  |
Amortization of intangibles | 15,205 |  |  | 13,973 |
Loss reserve discounting - transition rule | 9,894 |  |  | 14,843 |
Deferred policy acquisition costs | 176,281 |  |  | 157,055 |
Property, furniture and equipment | 43,501 |  |  | 45,887 |
Investment funds | 161,867 |  |  | 125,525 |
Other | 66,525 |  |  | 67,479 |
Deferred tax liability | 473,273 |  |  | 424,762 |
Net deferred tax asset | $ | 266,963 |  |  | $ | 329,001 |
The Company had a net current tax payable of $46 million and a net tax receivable of $5 million at December 31, 2023 and 2022, respectively. At December 31, 2023, the Company had foreign net operating loss carryforwards of $220 million that have no expiration date. At December 31, 2023, the Company had a valuation allowance of $36 million as compared to $47 million at December 31, 2022. The Company has provided a valuation allowance against the utilization of foreign tax credits and the future net operating loss carryforward benefits of certain foreign operations. The statute of limitations for the Company’s U.S. Federal income tax returns has closed for all years through December 31, 2019. The realization of the deferred tax asset is dependent upon the Company’s ability to generate sufficient taxable income in future periods. Based on historical results and the prospects for future current operations, management anticipates that it is more likely than not that future taxable income will be sufficient for the realization of this asset. The Tax Cuts and Jobs Act of 2017 (the "Tax Act") provided for a reduction of the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. The U.S. tax law requires insurance reserves to be discounted for tax purposes. The Tax Act modified this computation. The IRS issued revised discount factors to be applied to the 2017 reserves, which increased the beginning of year 2018 deferred tax asset for loss reserve discounting. Under the related transition rule, a deferred tax liability was established which will be included in taxable income over the eight year period that began in 2018. The Company has not provided U.S. deferred income taxes on the undistributed earnings of approximately $261 million of its non-U.S. subsidiaries since these earnings are intended to be permanently reinvested in the non-U.S. subsidiaries. In the future, if such earnings were distributed the Company projects that the incremental tax, if any, will be immaterial.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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