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Income Taxes
3 Months Ended
Mar. 31, 2017
Income Taxes [Abstract]  
Income Taxes

Note 15 Income Taxes

A. Income Tax Expense

 

The consolidated effective tax rate decreased to 33.4% for the three months ended March 31, 2017 compared with 37.2% for the three months ended 2016 due to the moratorium in 2017 on the health insurance industry tax that is not deductible for federal income tax purposes.

 

The Company maintains a capital management strategy to retain overseas a significant portion of the earnings from its foreign operations. As of March 31, 2017, undistributed earnings were approximately $2.7 billion. These undistributed earnings are deployed outside of the U.S. predominantly in support of the liquidity and regulatory capital requirements 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. If the Company had intended to repatriate these foreign earnings to the U.S., the Company's Consolidated Balance Sheets would have included an additional $362 million of deferred tax liabilities as of March 31, 2017.

 

B. Unrecognized Tax Benefits

 

Changes in unrecognized tax benefits were immaterial for the three months ended March 31, 2017.