Income Taxes

9 Months Ended

Sep. 30, 2015

Income Taxes [Abstract]

Income Taxes

Note 15― Income Taxes

A. Income Tax Expense

The consolidated effective tax rates of37.8%for the nine months ended September 30, 2015and 36.5% for the nine months ended September 30, 2014 reflect the health insurance industry taxthat 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 $2.1 billion as of September 30, 2015. If the Company intended to repatriate these foreign earnings to the U.S., the Company's consolidated balance sheet would have included additional deferred tax liabilities of approximately $240 million as of September 30, 2015.

B. Unrecognized Tax Benefits

Changes in unrecognized tax benefits were immaterial for the nine months ended September 30, 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 2014andwill continue into 2016.