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Income Taxes
3 Months Ended
Mar. 31, 2015
Income Taxes [Abstract]  
Income Taxes

Note 14 Income Taxes

A. Income Tax Expense

 

The consolidated effective tax rates of 37.8% for the three months ended March 31, 2015 and 38.0% for the three months ended March 31, 2014 reflect the health insurance industry tax that is not deductible for federal income tax purposes.  

 

As part of its global capital management strategy, the Company's foreign operations retain most of their earnings overseas. These undistributed earnings are deployed outside of the U.S. in support of the liquidity and capital needs of our foreign operations. The Company does not intend to repatriate these earnings to the U.S. and as a result, income taxes are provided using the respective foreign jurisdictions' tax rate. The Company has accumulated undistributed foreign earnings of $1.9 billion as of March 31, 2015. If the Company intended to repatriate these foreign earnings to the U.S., the Company's consolidated balance sheet would have included an additional $218 million of deferred tax liabilities as of March 31, 2015.

 

B. Unrecognized Tax Benefits

 

Changes in unrecognized tax benefits were immaterial for the three months ended March 31, 2015.

 

C. Other Tax Matters

 

The Internal Revenue Service's (“IRS”) examination of the Company's 2011 and 2012 tax years began in the third quarter of 2014 and is expected to continue through 2015.