Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

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



	2014			2013
Deferred tax assets relating to:
Retirement benefits	$	357.7		$	287.8
Accrued expenses	329.9			342.8
Insurance reserves	209.7			213.1
Net operating loss carryforwards	14.8			17.2
Bad debt reserves	132.9			124.8
State income tax	40.6			32.9
Deferred compensation	46.6			52.0
Investment basis difference	88.2			166.3
Other	34.2			84.0
Total deferred tax assets	1,254.6			1,320.9
Valuation allowance	(2.6		)	(24.1		)
Total deferred tax assets, net of valuation allowance	1,252.0			1,296.8
Deferred tax liabilities relating to:
Unrealized gains on securities	331.4			266.5
Acquisition related:
Trademarks and other non-amortizable intangible assets	2,200.5			2,200.5
Subscriber base, provider and hospital networks	301.1			370.9
Internally developed software and other amortization differences	654.9			703.9
Retirement benefits	241.1			231.5
Debt discount	184.0			186.9
State deferred tax	49.1			55.3
Depreciation and amortization	29.6			33.1
Other	205.9			190.4
Total deferred tax liabilities	4,197.6			4,239.0
Net deferred tax liability	$	(2,945.6	)	$	(2,942.2	)

Deferred tax asset-current	$	280.4		$	383.0
Deferred tax liability-noncurrent	(3,226.0		)	(3,325.2		)
Net deferred tax liability	$	(2,945.6	)	$	(2,942.2	)

Components Of Provision For Income Taxes

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



	2014		2013			2012
Current tax expense (benefit):
Federal	$	1,629.4	$	1,226.4		$	1,060.2
State and local	65.8		(42.6		)	95.7
Total current tax expense	1,695.2		1,183.8			1,155.9
Deferred tax expense	112.8		22.1			51.4
Total income tax expense	$	1,808.0	$	1,205.9		$	1,207.3

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:



	2014					2013					2012
	Amount			Percent		Amount			Percent		Amount			Percent
Amount at statutory rate	$	1,528.8		35.0	%	$	1,344.1		35.0	%	$	1,350.4		35.0	%
State and local income taxes net of federal tax benefit	49.0			1.1		24.4			0.6		25.5			0.6
Tax exempt interest and dividends received deduction	(65.9		)	(1.5	)	(64.9		)	(1.7	)	(59.3		)	(1.5	)
Health Insurance Provider fee	312.6			7.2		—			—		—			—
Audit settlements	—			—		—			—		(200.5		)	(5.2	)
Other, net	(16.5		)	(0.4	)	(97.7		)	(2.5	)	91.2			2.4
Total income tax expense	$	1,808.0		41.4	%	$	1,205.9		31.4	%	$	1,207.3		31.3	%

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:



	2014			2013
Balance at January 1	$	103.2		$	143.5
Additions for tax positions related to:
Current year	10.9			5.0
Prior years	31.3			—
Reductions related to:
Tax positions of prior years	(24.5		)	(45.3		)
Settlements with taxing authorities	(5.1		)	—
Balance at December 31	$	115.8		$	103.2

- 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.

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