Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Provision for Income Taxes

Income tax expense. Income tax expense (benefit) consists of the following:

	Current		Deferred			Total
	(In thousands)
Year ended December 31, 2017
Federal	$	53,084	$	(46,622	)	$	6,462
Foreign		28,613		(7,166	)		21,447
State and local		1,356		-			1,356
Total tax expense	$	83,053	$	(53,788	)	$	29,265
Year ended December 31, 2016
Federal	$	47,980	$	50,758		$	98,738
Foreign		23,102		(4,710	)		18,392
State and local		2,783		(1,732	)		1,051
Total tax expense	$	73,865	$	44,316		$	118,181
Year ended December 31, 2015
Federal	$	46,175	$	36,723		$	82,898
Foreign		14,600		3,161			17,761
State and local		2,043		(1,592	)		451
Total tax expense	$	62,818	$	38,292		$	101,110

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation for such difference follows:

	Year ended December 31,
	2017						2016						2015
	Amount			Percentage			Amount			Percentage			Amount			Percentage
	(Dollars in thousands)
Computed tax expense	$	132,832			35.0	%	$	118,158			35.0	%	$	101,843			35.0	%
Difference between foreign   statutory rate and U.S.   statutory rate		(6,668	)		(1.8	)%		(5,665	)		(1.7	)%		(5,531	)		(1.9	)%
Residual U.S. income taxes    on foreign earnings not    permanently reinvested – prior    to the enactment of the Tax    Reform Act		4,212			1.1	%		3,855			1.1	%		3,810			1.3	%
Excess tax benefits recognized on    share-based compensation		(6,051	)		(1.6	)%		-			—	%		-			—	%
Transition impact of the Tax Reform    Act		(95,457	)		(25.1	)%		-			—	%		-			—	%
Recognition of foreign tax credits		(40,386	)		(10.6	)%		-			—	%		-			—	%
Change in valuation allowance on    foreign tax credits		40,386			10.6	%		-			—	%		-			—	%
Other		397			0.1	%		1,833			0.6	%		988			0.3	%
Total tax expense /    effective rate	$	29,265			7.7	%	$	118,181			35.0	%	$	101,110			34.7	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities. The main components of deferred income tax assets and liabilities were as follows:

	December 31,
	2017			2016
	(In thousands)
Deferred tax assets:
Future policy benefit reserves and unpaid policy claims	$	206,794		$	223,845
Intangibles and tax goodwill		19,436			36,261
Future deductible liabilities		10,235			19,831
Share-based compensation		7,288			15,592
State income taxes		12,521			11,425
Foreign tax credits		40,386			-
Other		2,857			103
Total deferred tax assets before valuation allowance		299,517			307,057
Valuation allowance on foreign tax credits		(40,386	)		-
Total deferred tax assets after valuation allowance	$	259,131		$	307,057
Deferred tax liabilities:
Deferred policy acquisition costs	$	(275,388	)	$	(366,144	)
Timing difference for haircut on deductibility of future    policy benefit reserves prescribed in the Tax Reform Act		(22,307	)		-
Investments		(9,884	)		(16,769	)
Unremitted earnings on foreign subsidiaries		(2,614	)		(2,700	)
Reinsurance deposit asset		(45,641	)		(70,852	)
Other		(7,255	)		(11,864	)
Total deferred tax liabilities		(363,089	)		(468,329	)
Net deferred tax liabilities	$	(103,958	)	$	(161,272	)

Summary of Income Tax Contingencies

A reconciliation of the change in the unrecognized income tax benefit for the years ended December 31, 2017 and 2016 is as follows:

	December 31,
	2017			2016
	(In thousands)
Unrecognized tax benefits, beginning of period	$	14,811		$	13,939
Change in prior period unrecognized tax benefits		91			8
Change in current period unrecognized tax benefits		2,855			2,840
Reductions as a result of a lapse in statute of limitations		(3,372	)		(1,976	)
Unrecognized tax benefits, end of period	$	14,385		$	14,811