INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

The components of income tax expense (benefit) were as follows (dollars in millions):




	2022		2021		2020
Current tax expense (benefit)	$	31.8	$	64.1	$	(24.0)
Deferred tax expense	88.7		62.6		100.5

Income tax expense calculated based on annual effective tax rate	120.5		126.7		76.5

Income tax expense on discrete items:
Carryback of net operating losses to years with a higher statutory corporate rate pursuant to provisions of the CARES Act (as defined below)	—		—		(34.0)


Total income tax expense	$	120.5	$	126.7	$	42.5

A reconciliation of the U.S. statutory corporate tax rate to the effective rate reflected in the consolidated statement of operations is as follows:




	2022		2021		2020
U.S. statutory corporate rate	21.0	%	21.0	%	21.0	%

Non-taxable income and nondeductible benefits, net	(.4)		(.5)		(.4)
State taxes	2.7		1.8		1.6
Carryback of net operating losses to years with a higher statutory corporate rate pursuant to provisions of the CARES Act	—		—		(9.9)

Effective tax rate	23.3	%	22.3	%	12.3	%

The components of the Company's income tax assets and liabilities are summarized below (dollars in millions):


	2022		2021
Deferred tax assets:
Net federal operating loss carryforwards	$	166.0	$	241.4
Net state operating loss carryforwards	2.5		2.3



Insurance liabilities	322.2		390.7
Indirect costs allocable to self-constructed real estate assets	214.8		158.3
Accumulated other comprehensive loss	589.0		—
Other	7.3		27.5
Gross deferred tax assets	1,301.8		820.2
Deferred tax liabilities:
Investments	(37.2)		(48.2)
Present value of future profits and deferred acquisition costs	(107.1)		(119.4)
Accumulated other comprehensive income	—		(540.4)
Gross deferred tax liabilities	(144.3)		(708.0)
Net deferred tax assets	1,157.5		112.2
Current income taxes prepaid	8.0		6.1
Income tax assets, net	$	1,165.5	$	118.3

We have $0.8 billion of federal NOLs as of December 31, 2022, as summarized below (dollars in millions):