XML 95 R42.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Summary of income tax assets and liabilities | The income tax assets and liabilities included in Other assets and Other liabilities, respectively, in the Consolidated Balance Sheets were as follows:
($ in thousands) |  | December 31,
|  | 2019 |  | 2018
Income tax (asset) liability |  |  |  |
Current |  | $ | (12,184 | ) |  | $ | (20,793 | )
Deferred |  | 160,624 |  |  | 103,686 |
Summary of deferred tax assets and liabilities | The "temporary differences" that gave rise to the deferred tax balances were as follows:
($ in thousands) |  | December 31,
|  | 2019 |  | 2018
Deferred tax assets |  |  |  |  |  |
Unearned premium reserve reduction |  | $ | 12,103 |  |  | $ | 12,112 |
Compensation accruals |  | 8,866 |  |  | 6,866 |
Reinsurance commissions |  | 6,804 |  |  | — |
Impaired securities |  | 1,245 |  |  | 1,295 |
Other comprehensive income - net funded status of benefit plans |  | 2,875 |  |  | 3,254 |
Discounting of unpaid claims and claim expense tax reserves |  | 2,530 |  |  | 2,772 |
Postretirement benefits other than pensions |  | 285 |  |  | 302 |
Charitable contributions carryforwards |  | — |  |  | 89 |
Net operating loss carryforwards |  | 3,803 |  |  | 10,969 |
Total gross deferred tax assets |  | 38,511 |  |  | 37,659 |
Deferred tax liabilities |  |  |  |  |  |
Other comprehensive income - net unrealized gains on securities |  | 74,645 |  |  | 32,897 |
Deferred policy acquisition costs |  | 49,326 |  |  | 60,330 |
Life insurance future policy benefit reserve |  | 38,210 |  |  | 9,304 |
Life insurance future policy benefit reserve (transitional rule) |  | 12,786 |  |  | 14,910 |
Discounting of unpaid claims and claim expense tax reserves (transitional rule) |  | 947 |  |  | 1,203 |
Investment related adjustments |  | 15,718 |  |  | 17,531 |
Intangibles |  | 2,021 |  |  | 2,557 |
Other, net |  | 5,482 |  |  | 2,613 |
Total gross deferred tax liabilities |  | 199,135 |  |  | 141,345 |
Net deferred tax liability |  | $ | 160,624 |  |  | $ | 103,686 |
Summary of loss carryforwards and credits | At December 31, 2019, the Company had available the following carryforwards or credits.
($ in thousands) |  | Pretax Amount |  | Expiration Year
Operating loss carryforwards |  | $ | 12,711 |  |  | 2038
Operating loss carryforwards |  | 5,397 |  |  | Indefinite
Income taxes expenses | The components of the provision for income tax expense (benefit) were as follows:
($ in thousands) |  | Years Ended December 31,
|  | 2019 |  | 2018 |  | 2017
Current |  | $ | 31,518 |  |  | $ | 4,152 |  |  | $ | 3,813 |
Deferred |  | 20,488 |  |  | (2,958 | ) |  | (84,585 | )
Total income tax expense (benefit) |  | $ | 52,006 |  |  | $ | 1,194 |  |  | $ | (80,772 | )
Income taxes expenses reconciliation | Income tax expense for the following periods differed from the expected tax computed by applying the federal corporate tax rate of 21% for 2019 and 2018 and 35% for 2017 to income before income taxes as follows:
($ in thousands) |  | Years Ended December 31,
|  | 2019 |  | 2018 |  | 2017
Expected federal tax on income |  | $ | 49,654 |  |  | $ | 4,103 |  |  | $ | 31,041 |
Add (deduct) tax effects of: |  |  |  |  |  |
Tax-exempt interest |  | (4,159 | ) |  | (3,726 | ) |  | (5,335 | )
Dividend received deduction |  | (1,392 | ) |  | (412 | ) |  | (4,810 | )
Goodwill impairment |  | 5,885 |  |  | — |  |  | — |
Tax Act DTL re-measurement |  | — |  |  | — |  |  | (98,988 | )
Employee share-based compensation |  | 272 |  |  | (1,134 | ) |  | (3,258 | )
Compensation deduction limitation |  | 680 |  |  | 1,754 |  |  | 326 |
Prior year adjustments |  | (716 | ) |  | 300 |  |  | (293 | )
Other, net |  | 1,782 |  |  | 309 |  |  | 545 |
Income tax expense (benefit) provided on income |  | $ | 52,006 |  |  | $ | 1,194 |  |  | $ | (80,772 | )
Unrecognized tax benefits, excluding interest and penalties | A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows:
($ in thousands) |  | Years Ended December 31,
|  | 2019 |  | 2018 |  | 2017
Balance as of the beginning of the year |  | $ | 1,734 |  |  | $ | 1,790 |  |  | $ | 1,594 |
Increases related to prior year tax positions |  | 109 |  |  | — |  |  | 101 |
Decreases related to prior year tax positions |  | — |  |  | (152 | ) |  | — |
Increases related to current year tax positions |  | 123 |  |  | 96 |  |  | 422 |
Settlements |  | — |  |  | — |  |  | — |
Lapse of statute |  | — |  |  | — |  |  | (327 | )
Balance as of the end of the year |  | $ | 1,966 |  |  | $ | 1,734 |  |  | $ | 1,790 |

X
- Definition Schedule of income tax assets liabilities. + References No definition available. + Details
Name: | hmn_ScheduleOfIncomeTaxAssetsLiabilitiesTableTextBlock
Namespace Prefix: | hmn_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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://fasb.org/us-gaap/role/ref/legacyRef -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://fasb.org/us-gaap/role/ref/legacyRef -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://fasb.org/us-gaap/role/ref/legacyRef -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

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=117331294&loc=d3e36027-109320 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration