XML 42 R20.htm IDEA: XBRL DOCUMENT v3.25.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The provision for income taxes consisted of the following for the years ended December 31, 2024, 2023 and 2022:
202420232022
 (in millions)
Current provision:
Federal$566 $915 $755 
States and Puerto Rico39 85 107 
Total current provision605 1,000 862 
Deferred benefit(192)(164)(100)
Provision for income taxes$413 $836 $762 
The provision for income taxes was different from the amount computed using the federal statutory rate for the years ended December 31, 2024, 2023 and 2022 due to the following:
202420232022
 (in millions)
Income tax provision at federal statutory rate$340 $698 $750 
States, net of federal benefit, and Puerto Rico36 61 49 
Tax exempt investment income(3)(3)(3)
Nondeductible executive compensation31 19 30 
State lookback review refund claims(17)— — 
Tax effect from sale of Gentiva Hospice— — (72)
Unrecognized Tax Benefits29 37 — 
Other, net(3)24 8 
Provision for income taxes$413 $836 $762 
    
Deferred income tax balances reflect the impact of temporary differences between the tax bases of assets or liabilities and their reported amounts in our consolidated financial statements, and are stated at enacted tax rates expected to be in effect when the reported amounts are actually recovered or settled.
Principal components of our net deferred tax balances at December 31, 2024 and 2023 were as follows:
 Assets (Liabilities)
 20242023
 (in millions)
Net operating loss carryforward$93 $84 
Compensation and other accrued expense171 218 
Benefits payable217 150 
Deferred acquisition costs39 43 
Other6 16 
Unearned revenues6 5 
Investment securities510 419 
Total deferred income tax assets1,042 935 
Valuation allowance(85)(73)
Total deferred income tax assets, net of valuation allowance957 862 
Depreciable property and intangible assets(502)(642)
Prepaid expenses(172)(156)
Other(23)(16)
Total deferred income tax liabilities(697)(814)
Total net deferred income tax assets (liabilities)$260 $48 
Amounts recognized in the consolidated balance sheets:
Other long-term assets$260 $48 
All deferred tax assets and liabilities are classified as noncurrent in our consolidated balance sheets as other long-term assets and liabilities at December 31, 2024 and 2023, respectively.
At December 31, 2024, we had approximately $16 million of federal net operating losses and approximately $1.1 billion of pre-apportioned state and Puerto Rico net operating losses to carry forward. A portion of these loss carryforwards, if not used to offset future taxable income, will expire from 2025 through 2042. The balance of the net operating loss carryforwards has no expiration date. Due to limitations and uncertainty regarding our ability to use some of the loss carryforwards and certain other deferred tax assets, a valuation allowance of $85 million was established. For the remainder of the net operating loss carryforwards and other cumulative temporary differences, based on our historical record of producing taxable income and profitability, we have concluded that future operating income will be sufficient to recover these deferred tax assets.
We file income tax returns in the United States and Puerto Rico. The U.S. Internal Revenue Service, or IRS, has completed its examinations of our consolidated income tax returns for 2022 and prior years. Our 2023 tax return is in the post-filing review period under the Compliance Assurance Process, or CAP. Our 2024 tax return is under advance review by the IRS under CAP. With a few exceptions, which are immaterial in the aggregate, we are no longer subject to state, local and foreign tax examinations for years before 2021. We are not aware of any material adjustments that may be proposed as a result of any ongoing or future examinations. We do not have material uncertain tax positions reflected in our consolidated balance sheets.