Income Tax (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Total income tax expense (benefit) is allocated as follows:

	Year Ended December 31
	2019		2018		2017
	(in millions of dollars)
Net Income	$	281.8	$	104.4	$	409.8
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss)
Change in Net Unrealized Gain on Securities Before Adjustment	757.0		(614.2)		328.1
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance	(511.7)		371.7		(245.0)
Change in Net Gain on Hedges	(17.0)		(8.2)		(24.4)
Change in Foreign Currency Translation Adjustment	0.2		(0.6)		—
Change in Unrecognized Pension and Postretirement Benefit Costs	(9.3)		17.0		(8.3)
Total	$	501.0	$	(129.9)	$	460.2

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the income tax provision at the U.S. federal statutory rate to the income tax rate as reported in our consolidated statements of income is as follows. Certain prior year amounts have been reclassified to conform to current year

reporting.

	Year Ended December 31
	2019		2018		2017
Statutory Income Tax	21.0	%	21.0	%	35.0	%
U.S. Deferred Tax Liability Remeasurement	—		—		(7.0)
Deemed Repatriation Tax on Foreign Earnings and Profit (E&P)	—		1.8		4.7
Tax Exempt Income	(0.5)		(1.3)		(0.8)
Tax Credits	(1.1)		(2.4)		(1.5)
Policyholder Reserves	—		(2.4)		—
Other Items, Net	1.0		(0.1)		(1.2)
Effective Tax	20.4	%	16.6	%	29.2	%

Schedule of Deferred Tax Assets and Liabilities

Our net deferred tax asset (liability) consists of the following:

	December 31
	2019		2018
	(in millions of dollars)
Deferred Tax Asset
Reserves	$	1,154.6	$	668.5
Employee Benefits	201.6		179.5
Other	19.4		17.7
Gross Deferred Tax Asset	1,375.6		865.7
Less: Valuation Allowance	28.3		18.4
Net Deferred Tax Asset	1,347.3		847.3
Deferred Tax Liability
Deferred Acquisition Costs	115.6		129.7
Fixed Assets	58.5		56.2
Invested Assets	1,213.7		493.4
Intangible Assets	21.4		24.0
Other	33.5		34.1
Gross Deferred Tax Liability	1,442.7		737.4
Net Deferred Tax Asset (Liability)	$	(95.4)	$	109.9

Schedule of Income before Income Tax, Domestic and Foreign

Our consolidated statements of income include amounts subject to both domestic and foreign taxation. The income and related tax expense (benefit) are as follows. The federal statutory rates used were 21 percent for 2019 and 2018 and 35 percent for 2017:

	Year Ended December 31
	2019		2018		2017
	(in millions of dollars)
Income Before Tax
Domestic	$	1,289.5	$	492.6	$	1,289.0
Foreign	92.6		135.2		115.0
Total	$	1,382.1	$	627.8	$	1,404.0
Current Tax Expense (Benefit)
Federal	$	273.6	$	194.6	$	374.9
State and Local	1.3		(0.6)		0.4
Foreign	(0.1)		33.4		26.0
Total	274.8		227.4		401.3
Deferred Tax Expense (Benefit)
Federal	(9.5)		(114.6)		14.2
State and Local	(0.1)		(0.2)		(0.3)
Foreign	16.6		(8.2)		(5.4)
Total	7.0		(123.0)		8.5
Total Tax Expense	$	281.8	$	104.4	$	409.8

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible

Our consolidated statements of income include the following changes in unrecognized tax benefits. Certain prior year amounts have been reclassified to conform to current year reporting.

	December 31
	2019		2018		2017
	(in millions of dollars)
Balance at Beginning of Year	$	262.2	$	1.4	$	1.5
Increases (Decreases) for Tax Positions Related to Prior Years	(21.1)		261.5		0.3
Increases (Decreases) for Tax Positions Related to Current Year	—		—		—
Settlements with Tax Authorities	—		—		—
Lapse of the Applicable Statute of Limitations	(0.1)		(0.7)		(0.4)
Balance at End of Year	241.0		262.2		1.4
Less Tax Attributable to Temporary Items Included Above	(127.1)		(148.2)		—
Total Unrecognized Tax Benefits That if Recognized Would Affect the Effective Tax Rate	$	113.9	$	114.0	$	1.4