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Income Taxes
 9 Months Ended
Sep. 30, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

Income taxes were different from the amount computed by applying the federal income tax rate to Income (loss) before income taxes for the following reasons for the periods indicated:
 
Three Months Ended September 30,
 
2014
 
2013
Income (loss) before income taxes
$
554.8

 
$
420.0

Tax rate
35.0
%
 
35.0
%
Income tax expense (benefit) at federal statutory rate
194.2

 
147.0

Tax effect of:
 
 

Valuation allowance
(96.7
)
 
(68.3
)
Dividend received deduction 
(22.7
)
 
(43.4
)
Audit settlement
(0.9
)
 
(0.2
)
State tax expense (benefit)
0.5

 
(5.6
)
Noncontrolling interest
(40.8
)
 
(35.4
)
Tax credits 
(1.1
)
 
(3.6
)
Nondeductible expenses
2.6

 
(19.3
)
Other
2.3

 
1.1

Income tax expense (benefit)
$
37.4

 
$
(27.7
)
 
 
 
 
 
Nine Months Ended September 30,
 
2014
 
2013
Income (loss) before income taxes
$
1,276.1

 
$
130.5

Tax rate
35.0
%
 
35.0
%
Income tax expense (benefit) at federal statutory rate
446.6

 
45.7

Tax effect of:

 

Valuation allowance
(208.7
)
 
94.8

Dividend received deduction 
(73.6
)
 
(93.3
)
Audit settlement
(1.7
)
 
(1.9
)
State tax expense (benefit)
9.6

 
(2.3
)
Noncontrolling interest
(103.8
)
 
(29.6
)
Tax credits 
(1.1
)
 
(12.8
)
Nondeductible expenses
3.5

 
(8.9
)
Other
3.4

 
1.9

Income tax expense (benefit)
$
74.2

 
$
(6.4
)


Valuation allowances are provided when it is considered unlikely that deferred tax assets will be realized. As of September 30, 2014 and December 31, 2013, the Company had total valuation allowances of approximately $2.6 billion and $2.8 billion, respectively. As of September 30, 2014 and December 31, 2013, $3.0 billion and $3.2 billion, respectively, of these valuation allowances were allocated to continuing operations, and $(354.1) as of the end of each period were allocated to Other comprehensive income (loss) related to realized and unrealized capital losses.

For the three months ended September 30, 2014 and 2013, the total increases (decreases) in the valuation allowance were $(96.7) and $(68.3), respectively, which were allocated to continuing operations. There were no changes in the valuation allowance allocated to Other comprehensive income (loss) for the three months ended September 30, 2014 and 2013. For the nine months ended September 30, 2014 and 2013, the total increases (decreases) in the valuation allowance were $(208.7) and $94.8, respectively, which were allocated to continuing operations. There were no changes in the valuation allowance allocated to Other comprehensive income (loss) for the nine months ended September 30, 2014 and 2013.

Tax Regulatory Matters

During April 2014, the U.S. Internal Revenue Service ("IRS") completed its examination of the Company's returns through tax year 2012. The 2012 audit settlement did not have a material impact on the Company. The Company is currently under audit by the IRS, and it is expected that the examination of tax year 2013 will be finalized within the next twelve months. The Company and the IRS have agreed to participate in the Compliance Assurance Program for the tax years 2013 and 2014.

The IRS issued a Directive dated July 17, 2014 that it should not challenge the qualification of certain hedges and should not challenge certain tax accounting methods. The Company does not expect this Directive to have a material impact on the Company.