Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

The components of deferred income taxes at December 31 are as follows:



	2013			2012
Deferred tax assets relating to:
Retirement benefits	$	287.8		$	405.3
Accrued expenses	342.8			431.2
Insurance reserves	213.1			221.2
Net operating loss carryforwards	17.2			19.2
Bad debt reserves	124.8			108.2
State income tax	32.9			79.3
Deferred compensation	52.0			55.7
Investment basis difference	166.3			138.2
Other	84.0			47.0
Total deferred tax assets	1,320.9			1,505.3
Valuation allowance	(24.1		)	(18.1		)
Total deferred tax assets, net of valuation allowance	1,296.8			1,487.2
Deferred tax liabilities relating to:
Unrealized gains on securities	266.5			431.0
Acquisition related:
Trademarks and other non-amortizable intangible assets	2,200.5			2,200.5
Subscriber base, provider and hospital networks	370.9			447.7
Internally developed software and other amortization differences	703.9			599.3
Retirement benefits	231.5			214.1
Debt discount	186.9			189.7
State deferred tax	55.3			165.9
Depreciation and amortization	33.1			73.9
Other	190.4			151.6
Total deferred tax liabilities	4,239.0			4,473.7
Net deferred tax liability	$	(2,942.2	)	$	(2,986.5	)
Deferred tax asset-current	$	383.0		$	236.4
Deferred tax liability-noncurrent	(3,325.2		)	(3,222.9		)
Net deferred tax liability	$	(2,942.2	)	$	(2,986.5	)

Components Of Provision For Income Taxes

Significant components of the provision for income taxes for the years ended December 31 consist of the following:



	2013			2012		2011
Current tax expense (benefit):
Federal	$	1,226.4		$	1,060.2	$	1,150.4
State and local	(42.6		)	95.7		21.6
Total current tax expense	1,183.8			1,155.9		1,172.0
Deferred tax expense	22.1			51.4		139.2
Total income tax expense	$	1,205.9		$	1,207.3	$	1,311.2

Reconciliation Of Income Tax Expense Computed At The Statutory Federal Income Tax Rate

A reconciliation of income tax expense recorded in the consolidated statements of income and amounts computed at the statutory federal income tax rate for the years ended December 31, is as follows:



	2013					2012					2011
	Amount			Percent		Amount			Percent		Amount			Percent
Amount at statutory rate	$	1,344.1		35.0	%	$	1,350.4		35.0	%	$	1,385.3		35.0	%
State and local income taxes net of federal tax benefit	24.4			0.6		25.5			0.6		42.3			1.1
Tax exempt interest and dividends received deduction	(64.9		)	(1.7	)	(59.3		)	(1.5	)	(58.6		)	(1.5	)
Audit settlements	—			—		(200.5		)	(5.2	)	(49.7		)	(1.3	)
Other, net	(97.7		)	(2.5	)	91.2			2.4		(8.1		)	(0.2	)
Total income tax expense	$	1,205.9		31.4	%	$	1,207.3		31.3	%	$	1,311.2		33.1	%

Change In The Carrying Amount Of Gross Unrecognized Tax Benefits From Uncertain Tax Positions

The change in the carrying amount of gross unrecognized tax benefits from uncertain tax positions for the years ended December 31, is as follows:



	2013			2012
Balance at January 1	$	143.5		$	229.1
Additions for tax positions related to:
Current year	5.0			50.1
Prior years	—			13.0
Reductions related to:
Tax positions of prior years	(45.3		)	—
Settlements with taxing authorities	—			(148.7		)
Balance at December 31	$	103.2		$	143.5

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details