XML 45 R37.htm IDEA: XBRL DOCUMENT v2.4.0.8

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

Our income tax expense as presented in the consolidated financial statements is summarized as follows:

	Year Ended December 31,
	2013				2012				2011
	(Dollars in thousands)
Consolidated statements of operations:
Current income taxes	$	133,036			$	80,527			$	127,535
Deferred income taxes (benefits)	3,013				(52,336		)		(80,869		)
Total income tax expense included in consolidated statements of operations	136,049				28,191				46,666
Stockholders' equity:
Expense (benefit) relating to:
Change in net unrealized investment losses	(344,944		)		123,620				202,143
Share-based compensation	(4,043		)		(392		)		(1,061		)
Extinguishment of convertible debt	(4,546		)		—				—
Total income tax expense included in consolidated financial statements	$	(217,484	)		$	151,419			$	247,748

Effective Income Tax Rate Reconciliation

Income tax expense in the consolidated statements of operations differed from the amount computed at the applicable statutory federal income tax rate of 35% as follows:

	Year Ended December 31,
	2013				2012				2011
	(Dollars in thousands)
Income before income taxes	$	389,332			$	85,989			$	132,914
Income tax expense on income before income taxes	$	136,266			$	30,096			$	46,520
Tax effect of:
Tax exempt net investment income	(2,657		)		(1,876		)		—
Extinguishment of convertible debt	2,695				—				—
Other	(255		)		(29		)		146
Income tax expense	$	136,049			$	28,191			$	46,666
Effective tax rate	34.9		%		32.8		%		35.1		%

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the deferred tax assets and liabilities at December 31, 2013 and 2012, are as follows:

	December 31,
	2013				2012
	(Dollars in thousands)
Deferred income tax assets:
Policy benefit reserves	$	1,875,516			$	1,698,831
Other than temporary impairments	901				8,177
Investment income items	2,121				—
Amounts due reinsurer	7,366				—
Other policyholder funds	9,200				10,860
Litigation settlement accrual	7,420				7,351
Deferred compensation	13,430				14,659
Convertible senior notes	34,818				—
Net operating loss carryforwards	24,179				16,783
Other	8,835				7,192
Gross deferred tax assets	1,983,786				1,763,853
Deferred income tax liabilities:
Deferred policy acquisition costs and deferred sales inducements	(1,475,403		)		(1,425,266		)
Net unrealized gains on available for sale fixed maturity and equity securities	(12,742		)		(357,686		)
Convertible senior notes	—				(6,665		)
Derivative instruments	(193,067		)		(18,280		)
Investment income items	—				(2,588		)
Other	(718		)		(2,671		)
Gross deferred tax liabilities	(1,681,930		)		(1,813,156		)
Net deferred income tax (liability) asset	$	301,856			$	(49,303	)

X

- 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=6907707&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=6907707&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=6907707&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration