XML 57 R37.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2020
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,
| 2020 |  | 2019 |  | 2018
| (Dollars in thousands)
Consolidated statements of operations: |  |  |  |  |
Current income taxes | $ | 3,430 |  |  | $ | 12,528 |  |  | $ | 120,289 |
Deferred income taxes (benefits) | 141,071 |  |  | 56,947 |  |  | (12,563) |
Total income tax expense included in consolidated statements of operations | 144,501 |  |  | 69,475 |  |  | 107,726 |
Stockholders' equity: |  |  |  |  |
Expense (benefit) relating to: |  |  |  |  |
Adoption of expected credit loss model | (2,543) |  |  | — |  |  | — |
Change in net unrealized investment losses | 247,578 |  |  | 412,117 |  |  | (240,459) |
Total income tax expense (benefit) included in consolidated financial statements | $ | 389,536 |  |  | $ | 481,592 |  |  | $ | (132,733) |
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 rates of 21% for the years ended December 31, 2020, 2019, and 2018 as follows:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (Dollars in thousands)
Income before income taxes | $ | 815,961 |  |  | $ | 315,565 |  |  | $ | 565,742 |
Income tax expense on income before income taxes | $ | 171,352 |  |  | $ | 66,269 |  |  | $ | 118,806 |
Tax effect of: |  |  |  |  |
State income taxes | 5,749 |  |  | 5,111 |  |  | 5,777 |
Tax exempt net investment income | (4,602) |  |  | (4,385) |  |  | (4,223) |
Tax rate differential on net operating loss carryback | (30,041) |  |  | — |  |  | — |
Worthless stock deduction | — |  |  | — |  |  | (7,448) |
Other | 2,043 |  |  | 2,480 |  |  | (5,186) |
Income tax expense | $ | 144,501 |  |  | $ | 69,475 |  |  | $ | 107,726 |
Effective tax rate | 17.7 | % |  | 22.0 | % |  | 19.0 | %
Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to the deferred tax assets and liabilities at December 31, 2020 and 2019, are as follows:
| December 31,
| 2020 |  | 2019
| (Dollars in thousands)
Deferred income tax assets: |  |  |
Policy benefit reserves | $ | 1,463,227 |  |  | $ | 1,733,672 |
Credit losses/Impairments | 28,519 |  |  | 15,166 |
Amounts due reinsurer | — |  |  | 8,784 |
Other policyholder funds | 3,789 |  |  | 4,359 |
Deferred compensation | 2,161 |  |  | 3,705 |
Share-based compensation | 2,189 |  |  | 2,775 |
Net operating loss carryforwards | — |  |  | 37,509 |
Other | 3,569 |  |  | 14,677 |
Gross deferred tax assets | 1,503,454 |  |  | 1,820,647 |
Deferred income tax liabilities: |  |  |
Deferred policy acquisition costs and deferred sales inducements | (1,146,016) |  |  | (1,303,385) |
Net unrealized gains on available for sale fixed maturity securities | (639,769) |  |  | (392,189) |
Derivative instruments | (119,444) |  |  | (109,287) |
Policy benefit reserves | (123,270) |  |  | (147,924) |
Investment income items | (28,719) |  |  | (42,105) |
Amounts due reinsurer | (5,636) |  |  | — |
Other | (4,603) |  |  | (3,654) |
Gross deferred tax liabilities | (2,067,457) |  |  | (1,998,544) |
Net deferred income tax liability | $ | (564,003) |  |  | $ | (177,897) |

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